Promotion Study Material Clerk To Officer

A Reference Study Material
for Promotion
Exercise from Clerk to Officer
2016-17
Baroda Academy
Bank of Baroda
(For internal circulation only)
Baroda Academy 1 Inventing methods for inventing minds

INDEX
Sr. No. Topics Page No.
01. Banking Law & Practice 3-152
02. Banking Technology 153-199
03. General Knowledge 200-222
04. Rural Banking 223-263
05. English 264-288
06. Reasoning and Problem Solving 289-315
Disclaimer: Though all efforts have been made to incorporate latest and correct information of the related
topics but in case of any doubt please refer book of instructions, reference books and circulars of the bank.
This booklet is focusing mainly the written promotion exam within the bank looking the previous trends and
should not be considered as instruction manual.

BANKING LAW
&
PRACTICE

Banking Law and Practice
Introduction:
With the widening areas of banking operations, transactions which are undertaken by banks are ever growing,
both in volume and veracity. Certain important provisions of laws which embody rights, powers, duties,
liabilities and responsibilities of a Bank, are briefly dealt with, in this chapter. Certain important provisions of
following laws are covered:
Negotiable Instruments Act, 1881: Certain important Sections are given below.
Sec.4 - Promissory note is an instrument in writing containing an unconditional undertaking, signed by the
maker, to pay a certain sum of money only to, or to the order of a certain person, or to the bearer of the
instrument.
However, Sec.31 (2) of the Reserve Bank of India Act, 1934, has now prohibited the issue of promissory notes
expressed to be payable to the bearer except as provided by that section.
Sec.5 - Bill of Exchange is an instrument in writing containing an unconditional order, signed by the maker,
directing a certain person to pay a certain sum of money only to or to the order of a certain person or to the
bearer of the instrument.
Sec.6 - Cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise
than on demand.
Note: The above section implies that every cheque is a bill of exchange and is always drawn on a banker and
payable on demand.
Sec.8 - Holder of a promissory note, bill of exchange or cheque means, any person entitled in his own name
to the possession thereof and to receive or recover the amount due thereon from the parties thereto.
Note: To claim as a holder the person must acquire the title lawfully. A person, who takes the instrument
either under a forged or invalid endorsement such as that of a thief, cannot be regarded as a 'holder'.
Further, no person can sue on a negotiable instrument, unless he is named therein as a 'payee', or he gets his
title as an endorsee or a 'bearer'.
Sec.9- Holder-in-due-Course means any person, who for consideration became the possessor of a promissory
note, bill of exchange or cheque if payable to bearer, or the payee or endorsee thereof, if payable to order,
before the amount mentioned in it became payable and without having sufficient cause to believe that any
defect existed in the title of the person from whom he derived the title.
To be a holder-in-due-course, banker must be a payee or an endorsee if it is an 'order' cheque or be a

possessor of a bearer cheque. To claim the rights of a holder-in-due-course, cheque must be in the possession
of the banker.
Holder for Value is not defined in the Negotiable Instruments Act. However, if value of a negotiable instrument
has at any time being given, its holder is deemed to be a holder for value. If a banker allows his customers to
draw against the cheque before it is cleared, banker becomes holder for value. When a banker receives a
cheque for crediting the advance account of his customer, his position is that of a 'holder for value'.
Sec.118 presumes that every holder of a negotiable instrument is a 'holder-in-due-course' until the contrary is
proved.
Difference between 'Holder' and 'Holder-in-due-Course’:
Consideration:
To become a 'holder-in-due-course' a person should have obtained the instrument for a lawful consideration.
Whereas it is not so to become a 'holder'.
Before maturity:
To be a 'holder-in-due-course' a person must acquire title and possession of the instrument before its
maturity. In case of 'holder' he may obtain the possession thereon even after maturity.
Good faith:
Person who claims to be 'holder-in-due-course' of a negotiable instrument must have acquired it in good faith,
without having sufficient reason to believe that any defect exists in the title of the person from whom he has
acquired it. However, for a person who claims to be a 'holder' he need not fulfill this condition.
Sec.10- Payment in due course:

Payment according to the apparent tenor of the instrument in good faith and without negligence, to any
person in possession thereof under circumstances which do not afford reasonable ground to believe that the
person receiving the payment is not entitled to receive the payment of the amount therein mentioned.
Various protections available to a paying banker are available only if the payment is 'in due course'.
Sec.13 - There are three types of negotiable instruments viz. Promissory Notes, Bills of Exchange and
Cheque, Note, Demand draft is not a cheque but it is a bill of exchange. However, for the purpose of
Secs.125 and 131, it is treated as a 'cheque'.
Sec.14 - When a promissory note, bill of exchange or a cheque is transferred to any person, so as to
constitute that person the holder thereof, the instrument is said to be negotiated.
Sec.15 - Endorsement: When the maker or holder of the negotiable instrument signs the same on the face or
back thereof for the purpose of negotiation to another person, it is called endorsement.
Sec.16 (1) - Blank endorsement: If the endorser simply signs his name without adding any person's name or
directions, it is said to be an endorsement in blank.
Sec.16 (2) - Full endorsement: If an endorser signs his name and adds a direction to pay to or to the order of
a specified person, it is said to be an endorsement in full.
Note: For negotiation of a bearer instrument delivery is essential. For negotiation of an order instrument, an
endorsement followed by delivery is essential. Endorsement in blank of an order instrument converts it into a
bearer instrument. However, endorsement in full of a 'bearer' instrument does not convert it into an order
instrument. It remains a bearer instrument (Sec.85A).
Sec.18 - When the amount written in 'words' and ‘figures’ differs, banks can pay the amount written in
'words' provided the payment is in due course.
Sec.19 - Demand bill: Where no time for payment of a bill of exchange is specified, and a cheque is payable
on 'demand'.
Sec.21 - Bills drawn with expressions 'on demand', 'at sight' or 'on presentment' indicates that the bill is
payable on 'demand'. Usance/Time bill: A bill which is expressed to be payable after a fixed period or after
sight or on a specified day or on the happening of an event which is certain to happen is called an 'usance
bill/time bill'.
Sec.22 - The maturity date of a promissory note or a bill of exchange is the date on which if falls due. 3 days
of grace are allowed on promissory note or a bill of exchange not payable on demand, e.g.:
- Bill or note payable so many months or days after date.
- Bill or note payable so many months or days after sight.
- Bill or note payable on a specified date.
Sec.23 - Determination of 'due date' of a bill payable so many months after date or sight –
- Determine the corresponding date of month after the stated number of months.
- Add 3 days of grace.
- It will be due on the 4th day.
Illustration:
Bill date Tenor Date of acceptance Due date
Before grace After grace
period period
27/10/2011 4 months after 15/11/2011 27/02/2012 01/03/2012
date
27/10/2011 4 months after 15/11/2011 15/03/2012 18/03/2012
sight
Sec.24 - Determination of 'due date' of a bill payable so many days after date or sight:
- Calculate so many days from the date of the bill or date of acceptance after excluding the date of bill or
date of acceptance. Add 3 days to the day so arrived at. It will be due on the 4th day.
Illustration:
Bill date Tenor Date of acceptance Due date

Before grace period After grace period
27/10/2011 120 days after 15/11/2011 24/02/2012 27/02/2012
date
27/10/2011 120 days after 15/11/2011 13/03/2012 17/03/2012
sight
01/11/2011 120 days after 15/11/2011 28/02/2012 03/03/2012
date
Since 14/03/2012 is a Sunday, the bill is due on preceding day i.e. 13/03/2012 (Sec.25)
Since 29/02/2012 is a Sunday, the bill is due on preceding day i.e. 28/02/2012 (Sec.25)
Sec.25 - When the day on which a promissory note or a bill of exchange matures (after adding 3 days of
grace, wherever allowed) on a Sunday or a public holiday (declared by the Central Government or State
Government by a notification under official gazette under Negotiable Instruments Act) the instrument shall be
deemed to be due on the next preceding business day.

Sec. 26 - Authority of persons to bind themselves:
"Every person capable of contracting, according to the law to which he is subject, may bind himself and be
bound by the making, drawing, acceptance, endorsement, delivery and negotiation of a promissory note, bill
of exchange or cheque.
Minor: A minor may draw, endorse, deliver and negotiate such instrument so as to bind all parties except
himself. Nothing herein contained shall be deemed to empower a corporation to make, endorse or accept such
instrument except in cases to which under the law for the time being in force, they are so empowered."
Under the provisions of General Clauses Act (X of 1897), the term "person” includes any company or
association or body of individuals, whether incorporated or not. The last paragraph of the above section
specifically negates any interpretation of the section that may be relied upon to confer any power on a
company for making, endorsing or accepting a negotiable instrument and its powers in this regard are
regulated by the Companies Act, 1956 and other statutory enactment.
Sec. 27 - Authority of an Agent to bind his principal in respect of a negotiable instrument :

Every person capable of binding himself or of being bound may as mentioned in Section 26 so bind himself or
be bound by a duly authorised agent acting in his name.
A general authority to transact business and to receive and discharge debts does not confer upon an agent the
power of accepting or endorsing bills of exchange so as to bind his principal. An authority to draw bills of
exchange does not by itself impart an authority to endorse a negotiable instrument.
Sec. 28 - Liability of an agent signing on behalf of his principal:

"An agent who signs his name to a promissory note, bill of exchange or cheque without indicating thereon that
he signs as agent or that he does not intend thereby to incur personal responsibility is liable personally on the
instrument, except to those who induced him to sign upon the belief that the principal only would be held
liable."
Sec. 30 - Liability of the drawer: "The drawer of a bill of exchange or cheque is bound, in case of dishonour
by the drawee or acceptor thereof, to compensate the holder, provided due notice of dishonour has been
given to or received by the drawer as hereinafter provided."
Under this section the contract of the drawer of a cheque is similar to that of the drawer of a bill except that in
case of cheques there is no acceptance and the payment is due on presentment. In case the cheque or the
bill is not paid, the holder has recourse to the drawer. However, notice of dishonour should be given by the
holder to the drawer to establish liability of the drawer.
Sec. 31 - Liability of the drawee of a cheque:

"The drawee of a cheque having sufficient funds of the drawer in his hands properly applicable to the
payment of such cheque must pay the cheque when duly required so to do and in default of such payment,
must compensate the drawer for any loss or damage caused by such default."
It is obligatory on the part of the banker to honour his customers' cheques to the extent of funds lying with
him on their account. In case of a wrongful dishonour, court/consumer forum may award exemplary damages
for loss of credit of the customer in addition to the amount of compensation.
However, the obligation to pay cheques arises unless agreed to by and between bank and customer otherwise
primarily at the branch of the bank where the account is kept and during banking hours and the bank is not
bound to honour the cheques at any other branch unless agreed to by and between the Bank and the
customer. The banker also has a right to insist on having his mandate in a form which does not leave room
for misgiving as to what he is called upon to do (in other words there should not be any ambiguity) and the
Banker is not bound to pay unless the cheque is in proper form, correctly signed, endorsed by payee and
presented at the proper time and place.
Sec.56 - Endorsements for part of sum due.

No writing on a negotiable instrument is valid for the purpose of negotiation if such writing purports to transfer
only a part of the amount appearing to be due on the instrument but where such amount has been partly
paid, a note to that effect may be endorsed on the instrument which may then be negotiated for the balance.
Sec.57 - Negotiation by legal representative:

The legal representative of a deceased person cannot negotiate by delivery only, a promissory note, bill of
exchange or cheque payable to order and endorsed by the deceased but not delivered.
Sec.58 - Instrument obtained by unlawful means or for unlawful considerations:
When a negotiable instrument has been lost or has been obtained from any maker, acceptor or holder thereof
by means of an offence or fraud, or for an unlawful consideration, no possessor or endorsee who claims
through the person who found or so obtained the instrument is entitled to receive the amount due thereon
from such maker, acceptor or holder or from any party, prior to such holder, unless such possessor or
endorsee is, or some person through whom he claims was a holder thereof in due course.
NOTE:
Thus a person who is sued on an instrument may show:-
- that it had originated for an illegal consideration or
- that the consideration was absent or that it has failed wholly or in part, or
- that it was delivered conditionally and the condition has not been fulfilled, or
- that its possession was obtained from him by fraud or by an offence like theft etc.
Sec.59 - Instrument acquired after dishonour or when overdue:

The holder of a negotiable instrument who has acquired it after dishonour, whether by non-acceptance or by
non-payment, with notice thereof, or after maturity, has only, as against the other parties, the rights thereon
of his transferor.
Sec.60 - Instrument negotiable till payment or satisfaction:

A negotiable instrument may be negotiated (except by the maker, drawee or acceptor after maturity) until
payment or satisfaction thereof by the maker, drawee or acceptor at or after maturity, but not after such
payment or satisfaction.
If a maker/ acceptor of an instrument pays on it before maturity, the instrument is said to be “retired" but it is
not discharged and its negotiability has not ended. It may be reissued before maturity. But if a party primarily
liable has paid on it at or after maturity its negotiability comes to an end and it cannot be reissued because the
instrument is discharged by such payment.
Sec.77 - Liability of banker for negligently dealing with bill presented for payment:
When a bill of exchange accepted payable at a specified bank has been duly presented thereof for payment
and dishonoured, if the banker so negligently or improperly keeps or deals with or delivers back such bill as to
cause loss to the holder, he must compensate the holder for such loss. If an acceptor has accepted a bill of
exchange payable at his bankers the banker who receives the bill from the holder for payment is a bailee. If
he dishonours it, he must take proper care of it and return it to the holder. If the banker is negligent he will be
liable to the holder.
Sec.80 - Interest payable on negotiable instrument:

Interest @ 18% p.a. is to be paid by the parties charged on the basis of a negotiable instrument if no rate of
interest is specified in the instrument (w.e.f. 30.12.1988). The interest is payable from the date the amount
ought to have been paid by the party charged until tender or realisation of the amount due thereon or until
such date after the institution of a suit to recover such amount as the court directs. When the party charged is
an endorser of an instrument, he is liable to pay interest only from the time that he receives notice of the
dishonour.
Sec. 85 - Protection to paying banker:

Where a cheque payable to order purports to be endorsed by or on behalf of the payee, the drawee is
discharged by payment in due course.
Where a cheque is originally expressed to be payable to bearer, the drawee is discharged by payment in due
course to the bearer thereof, notwithstanding any endorsement whether in full or in blank appearing thereon
and notwithstanding that any such endorsement purports to restrict or exclude further negotiation.
NOTES:
Banker is under an obligation to honour his customer's cheque. This obligation can be discharged only if the
cheque he honours is among other things a legal one and is also regular and unambiguous in form.
Sub-Section (2) of Section 85 affords protection to a banker by providing that no bearer cheque should lose its
bearer character by any endorsement on the same but the protection afforded is available only if the payment
is in due course.
The banker can not afford to overlook the endorsements made before paying the money to the holder of the
cheque. It must at least appear that the holder is the person entitled to payment.
As regards cheques payable to order, the mandate is fulfilled only by paying to the payee named or to some
person to whom he has transferred the instrument by a genuine endorsement. When payment is made by a
banker on a forged endorsement or on an endorsement by an agent contrary to instructions or in excess of
authority, then such payment becomes a payment not in due course.
Though, the question whether a payment was payment in due course is one of the facts to be determined by
the circumstances of each case, it is clear that payment of cheque before due date, payment after
countermand, payment on bankruptcy or after passing of a winding up order, payment of cheque containing
unauthenticated alteration, payment to improper person are not payments in due course. Moreover, under
Section 129, payment of a crossed cheque generally otherwise than to a banker or a cheque crossed specially
otherwise than to a banker to whom the same is crossed, or his agent for collection being a banker is also
payment out of due course.
Sec.87 - Effect of material alteration:

Any material alteration of a negotiable instrument renders it void as against any one who is a party at the
time of making such alteration and does not consent thereto, unless it was made in order to carry out the
common intention of the original parties and any alteration if made by an endorsee, discharges his endorser
from all liability to him in respect of the consideration thereof.

Sec.99 - Noting and Protest:
"When a promissory note or bill of exchange has been dishonoured by non-acceptance or non-payment, the
holder may cause such dishonour to be noted by a notary public upon the instrument or upon a paper
attached thereto or partly upon each." "Such note must be made within a reasonable time after dishonour and
must specify the date of dishonour, the reason, if any, assigned for such dishonour or if the instrument has
not been expressly dishonoured, the reason why the holder treats it as dishonoured and the notary's charges."
Notes: Section 99 provides the method for establishing the fact of dishonour of a promissory note or a bill of
exchange by "noting". 'Noting' is a minute made on the instrument or upon a paper attached thereto by a
notary public.
Sec.100 - Protest:
"When a promissory note or bill of exchange has been dishonoured by non-acceptance or non-payment, the
holder may, within a reasonable time, cause such dishonour to be noted and certified by a notary public. Such
certificate is called a protest."
Note: Protest is a formal certificate issued by the notary public certifying the fact of the dishonour of bill of
exchange or promissory note and is based on the noting.
Sec.104 - Noting and protest of foreign bills:
"Foreign bills of exchange must be protested for dishonour when such protest is required by the law of the
place where they are drawn."
Note: Foreign bills of exchange are: a) bills drawn outside India and made payable in or drawn upon any
person resident in any country outside India, b) Bills drawn outside India and made payable in India or drawn
upon a resident in India and c) bills drawn in India and made payable outside India.
Inland bills, i.e. bills drawn and payable in India are not compulsorily required to be protested for dishonour.
Even in case of foreign bills when the law of the place where they are drawn does not require protest for
dishonour, they need not be so protested. However, even inland bills should be protested for dishonour if the
drawer/endorser so requests. Moreover, under section 119 of the Negotiable Instruments Act, a court shall
presume the fact of dishonour if a protest is produced before it, unless it is disproved.
Sec.131 - Protection to collecting banker:
"A banker who has in good faith and without negligence received payment for a customer of a cheque crossed
generally or specially to himself, shall not, in case the title to the cheque proves defective, incur any liability to
the true owner of the cheque, by reason only of having received such payment.
Explanation: A banker receives payment of a crossed cheque for a customer within the meaning of this section
notwithstanding that he credits his customers account with the amount of the cheque before receiving
payment thereof.
NOTE: For a collecting banker to avail protection under this section the conditions are that
(1) he should act in good faith and without negligence, (2) he should act as mere agent in collection of the
cheque and not on his own account as holder, (3) the person for whom he acts must be his customer and (4)
the cheque must be one crossed generally or specially to himself, unless a collecting banker can bring himself
within the conditions formulated by this section, he is left to his liability for conversion or for money had and
received, in the event, the person from whom he takes the cheque has no title or a defective title.
Sec.138 - Dishonour of cheques for Insufficiency etc. of funds in the account: ( Note : Please see the
amendment also given on 13.3)
(I) Where any cheque drawn by a person on his bank for the discharge of any legally enforceable debt or
liability is returned by the bank unpaid for the reason of the insufficiency of the amount of money standing
to the credit of the account on which the cheque has been drawn or for the reason that it exceeds the
arrangements made by the drawer of the cheque with the banker for that amount, the drawer of such cheque
shall be deemed to have committed an offence. In that case, the drawer, without prejudice to the other
provisions of the said Act, shall be punishable with imprisonment for a term, which may extend to one year,
or with fine, which may extend to twice the amount of the cheque or with both.
The section further provides that -
such cheque should have been presented to the bank within a period of six months of the date of its drawal
(in case of post dated cheques, the date of the cheque will be deemed to be the date of drawal) or within
the period of its validity, whichever is earlier, the payee or holder-in-due-course of such cheque should have
made a demand for the payment of the said amount of money by giving a notice, in writing, to the drawer
of the cheque within 15 days of the receipt of information by him from the bank regarding the return of the
cheque unpaid and the drawer of such cheque should have failed to make the payment of the said amount of
money to the payee or the holder-in-due- course of the cheque within 15 days of receipt of the said notice.
(II) Note: Following points to be noted in respect of this section

a) This section covers only cheques dishonoured for "insufficiency of funds' in the account and not for
cheques dishonoured for other technical reasons viz. payment stopped by drawer, signature differs etc.
b) Return of cheques with reason 'Refer to drawer' will not attract prosecution under this section. So
branches should not use the term 'refer to drawer' while returning cheques of customers for
financial reasons.
c) A cheque given as gift/donation will not be governed by this section.
d) Keeping in view the implications as above due care should be exercised while returning cheques with
reason 'insufficient funds'.
e) Payee should give a notice of dishonour and demanding payment from the drawer within 15 days of
his receiving information of dishonour for 'insufficiency of funds'.
f) The collecting banker should return the dishonoured cheque to the customer immediately on receipt
from the paying banker.
Sec.141 - Provides that if the person committing an offence under Sec.138 is a 'company', every person who,
at the time was committed, was in charge of and was responsible to, the company for the conduct of the
business of the company as well as the company, shall be deemed to be guilty of the offence and shall be
liable to be proceeded against and punished as per Sec.138. However, if the person liable to punishment as
above proves that the offence was committed without his knowledge or that he had exercised all due diligence
to prevent the commission of such offence, he will not be liable to punishment.

Sec.142 - Cognizance of offence:
This section provides that -
(a) No court shall take cognizance of any offence punishable under Sec.138 unless a complaint in writing has
been made by payee or the holder in due course.
(b) Such a complaint should be made within one month of the cause of action arising under Sec.138 i.e.
within one month from the expiry of 15th day from the date of receipt of notice from the payee or holder
in due course.
(c) Complaint should be made to the court of a Metropolitan Magistrate or a Judicial Magistrate or any
superior court.
Note:
Sections 138 and 142 are effective from 1.4.1989.
(d) Cheques issued before 1.4.1989 but dishonoured after that date are also covered under these sections.
(e) Whenever banks purchase clean cheques/drafts drawn in favour of constituents, it must be ensured that
the cheques/drafts should be properly endorsed in Bank's favour to avail provisions of these sections as
"holder in due course".
Negotiable Instruments Act 1881, (Section 138 change): -

Generally the provisions of section 138 are applicable only to Cheques. However in the case of Punjab & Sind
Bank V. Vinak Sahakari Bank (2001) CLA – BL (2) 195 (SC) the Supreme Court has held that a Pay Order can
be treated as a Cheque, because of the same being on being an unconditional Order of its maker, to the
concerned person to pay certain sum of money on Demand. In view of this, section 138 applies to Cheques
and other Instruments like Demand Draft, Pay Order and Bankers cheque, which can be treated as cheque by
the holder in due course.
Hon’ble Supreme Court has also held in Modi Cements case, that once the cheque is issued by the drawer to
the Bank/Payee, merely because the drawer issues a notice to the drawee or to the bank for ‘stop payment’, it
will not preclude an action under section 138 of N.I. Act (Modi Cements Ltd. V. Kuchi Kumar Nandi (1998) 28
CLA (SC) /JT 1998 (2) SC 198).
Vide, the Negotiable Instrument (Amendment & Misc. Provisions) Act 2002 important amendments have been
made to certain provisions of the Negotiable Instrument (Amendment & Misc. Provisions) Act 2002 to the
following effect: -
- Definition of a ‘cheque’ widened to include electronic image of a truncated cheque and a cheque in
electronic forms.
- Right of the banker who received payment on electronic image of a truncated cheque to retain the
truncated cheques.
- Certificate of on text of print out of electronic image of truncated cheque by paying Banker as proof of
payment.
- Doubling of the imprisonment term from one year to two years.
- Doubling of penalty for the offence, i.e. upto twice the amount of the instrument.
- Doubling of the period of time to issue demand notice to drawer from 15 to 30 days.
- Immunity from prosecution for nominee directors, who are nominated by virtue of holding any office or
employment in Central Government or State Government or a financial corporation owned or controlled by
the Central Government or State Government.
- Compounding of offence under the N.I. Act.
- Empowering the magistrate to condone delay in filing complaint
- Bank’s slip or Memo having Bank’s official mark denoting that the cheque has been dishonoured shall be
presumed to be the fact of dishonour.
As per Section 146 inserted by the Amendment Act 2002 statutory presumption is given to the bank’s
endorsement memorandum, which will be treated as prima facie evidence of certain facts. The court, on
production of bank’s slip or Memo having therein the official mark denoting that the cheque has been
dishonoured, shall presume the fact of dishonour of such cheque, unless and until such fact is disproved.
The usual practice followed by the courts of calling the drawee bank’s person as a witness to prove this fact
used to cause delay in prosecuting the drawer. Now it is for the accused/drawer to prove that there were
sufficient funds in the account or that the cheque was not returned for the reason “insufficient funds” or any
other financial reason.
Therefore, the requirement of branch’s witness as drawee bank can be dispensed with.
Negotiable Instrument Act 1881: At a glance

SEC. TERM MEANING
3 Banker Banker includes any person acting as a Banker and any post office savings bank.
4 Promissory Note A Promissory Note is an instrument in writing, containing an unconditional
undertaking signed by maker, to pay a certain sum of money only to or to the
order of a certain person or to the bearer of the instrument.
5 Bill of Exchange A Bill of Exchange is an instrument in writing containing an unconditional order,
signed by the maker, directing a certain person to pay certain sum of money only
to or to the order of a certain person or to the bearer of the instrument. Here,
the promise to pay is not conditional.
6 Cheque A cheque is a Bill of Exchange drawn on a specified banker and not expressed to
be payable otherwise then on demand and it includes the electronic Image of a
truncated cheque & a cheque in the electronic form.
7 Drawee The maker of a Bill of Exchange or Cheque is called the drawer, the person
thereby directed to pay is called the Drawee.
Payee The person named in the instrument, to whom or to whose order the money is,
by the instrument directed to be paid, is called the payee.
8 Holder The Holder of a promissory note, bill of exchange or cheque means any person
entitled in his own name to the possession thereof and to receive or recover the
amount due thereon from the parties thereto.
Where the bill of exchange or cheque is lost or destroyed, its holder is the person
so entitled at the time of such loss or destruction.

9 Holder In Due Holder in due course means any person who for consideration became the
course possessor of the promissory note, bill of exchange or cheque ,if payable to
bearer, or the payee or endorsee thereof, if, before the amount mentioned in it
became payable and without having sufficient cause to believe that any defect
existed in the title of the person from whom he derived his title.
10 Payment in Due Payment in due course, means payment in accordance with the apparent tenor of
course the instrument in good faith and without negligence to any person in possession
thereof under circumstances which do not afford a reasonable ground for
believing that he is not entitled to receive payment of the amount therein
mentioned.
11 Inland Instrument A Promissory Note, Bill of Exchange or Cheque drawn or made in, and made
payable in or drawn upon any person resident in (India) shall be deemed to be
an Inland Instrument.
13 Negotiable A NI means Promissory Note, Bill of Exchange or Cheque payable either to order
Instrument or to the bearer.
14 Negotiation When a Promissory note, bill of exchange or cheque is transferred to any person,
so as to constitute the person the holder thereof, the instrument is said to be
negotiated.
15 Endorsement When the maker or the holder of the negotiable instrument signs the same,
otherwise than as such maker, for the purpose of the negotiation, on the back or
the face thereof or on a slip of paper annexed thereto or so signs for the same
purpose a stamped paper intended to be completed as a negotiable instrument,
he is said to endorse the same is called the Endorser.
16 Endorsement in If the endorser signs his/her name only, the endorsement is said to be “in blank”,
Blank and Full and if he adds direction to pay, the amount mentioned in the instrument, or to
the order of a specified person the endorsement is said to be in full and the
person so specified is called the endorsee of the instrument.
20 Inchoate stamped Where one person signs and delivers to another person a paper stamped in
instrument accordance with the law relating to negotiable instrument then in force in India
and either ,wholly blank or having written thereon an incomplete negotiable
instrument, he thereby gives prima facie authority to the holder thereof to make
or complete, as the case may be , upon it a negotiable instrument, for any
amount specified therein and not exceeding the amount covered by the stamp.
The person so signing shall be liable upon such instrument, in the capacity in
which he signed the same, to any holder in due course for such amount.
21 “At Sight” / “On In a promissory note or bill of exchange the expressions “at sight” and “on
presentment”/ presentment” means “on demand”. The expression “after sight” means, in a
“After Sight” promissory note, after presentment for sight and in a bill of exchange after
acceptance or noting for non acceptance, or protest for non acceptance .
22 Maturity The maturity of a promissory note or bill of exchange is the due date at which it
falls due.
Every promissory note or bill of exchange which is not expressed to be payable
on demand, at sight or on presentment is at maturity on the third day after the

day on which it is expressed to be payable.
25 When maturity is a When the day on which a promissory note or bill of exchange is at maturity, is a
holiday public holiday, the instrument shall be deemed to be due on the next preceding
business day.
26 Minor A minor may draw, endorse, deliver and negotiate such instruments so as to bind
all parties except himself.
30 Liability of Drawer The drawer of a bill of exchange or cheque is bound in case of dishonor by the
drawee or acceptor thereof, to compensate the holder, provided due notice of
dishonor has been given to or received by the drawer as hereinafter provided.
46 Delivery The making, acceptance or endorsement of a promissory note, bill of exchange or
cheque is complete by delivery, actual or constructive.
47 Negotiation by A promissory note, bill of exchange, or cheque, payable to bearer is negotiable by
delivery delivery thereof.
48 Negotiation by A promissory note, bill of exchange, or cheque, payable to order is negotiable by
Endorsement the holder by endorsement and delivery thereof.
49 Conversion of The holder of a negotiable instrument, endorsed in blank may without signing his
Endorsement in own name by writing above the endorser’s signature a direction to any other
Blank in to full person as endorsee, convert the endorsement in blank into an endorsement in
full.
77 Liability of banker When a bill of exchange, accepted payable at a specified bank, has been duly
for negligently presented there for payment and dishonored, if the banker so negligently or
dealing with bill improperly keeps, deals with or delivers back such bill as to cause loss to the
presented for holder, he must compensate the holder for such loss.
payment.
85 Cheque payable to Where a cheque is payable to order purports to be endorsed by or on behalf of
order the payee, the Drawee is discharged by payment in due course.
87 Effect of Material Any material alteration of a negotiable instrument renders the same void as
Alteration against any one whom is a party thereto at the time of making such alteration
and does not consent thereto, unless it was made in order to carry out the
common intention of the original parties.
115 Drawee in case of Where a Drawee in case of need is named in a bill of exchange or in any
need endorsement thereon, the bill is not dishonored until is has been dishonored by
such Drawee.
123 Cheque crossed Where a cheque bears across its face an addition to the words “and company” or
generally any abbreviation thereof, between two parallel transverse line, or of two parallel
transverse lines simply, either with or without the words “not negotiable”, that
addition shall be deemed a crossing , and the cheques shall be deemed to be
crossed generally.
124 Cheque crossed Where a cheque bears across its face an addition of the name of a banker either
specially with or without the words “not negotiable”, that addition shall be deemed a
crossing, and the cheque shall be deemed to be crossed specially and to be
crossed to that banker.

128 Payment in due Where the banker on whom a crossed cheque is drawn has paid the same in due
course of crossed course, the banker paying the cheque, and (in case such cheque has come to the
cheque hands of the payee) the drawer thereof, shall respectively be entitled to the same
rights, and be placed in the same position in all respects, as they would
respectively be entitled to and placed in if the amount of the cheque had been
paid to and received by the true owner thereof.
129 Payment of Any banker paying a cheque crossed generally otherwise than to a banker, or a
crossed cheque out cheque crossed specially otherwise than to the banker to whom the same is
of due course crossed, or his agent for collection, being a banker, shall be liable to the true
owner of the cheque for any loss he may sustain owing to the cheque having
been so paid.
130 Not Negotiable A person taking a cheque crossed generally or specially, bearing in either case
the words “not negotiable”, shall not have and shall not be capable of giving, a
better title to the cheque than that which the person from whom he took it had.
131 Non liability of A banker who has in good faith and without negligence, received payment for a
banker receiving customer of a cheque crossed generally or specially to him-self shall not, in case
payment of cheque the title to the cheque proves defective, incur any liability to the true owner of
the cheque by reason only of having received such payment.
138 Dishonor of Where any cheque drawn by a person on account maintained by him with a
Cheque for banker for payment of any amount of money to another person from out of that
insufficiency etc. of account for the discharge, in whole or in part, of any debt or other liability, is
funds in the returned by the bank unpaid, either because of the amount of money standing to
account. the credit of that account is insufficient to honor the cheque or that it exceeds
the amount arranged to be paid from that account by an agreement made with
that bank, such person shall be deemed to have committed an offence and shall,
without prejudice to any other provision of this Act, be punished with
imprisonment for a term which may be extended up to two years, or with fine
which may extend up to twice the amount of the cheque, or with both.
The Provisions of the Article is also applicable in bouncing of cheques due to stop
payment Instructions.
139 Recent Following are the recent amendments:-
to amendments in 1. Definition of a ‘cheque’ widened to include electronic image of a truncated
147 Negotiable cheque and a cheque in electronic forms.
Instruments 2. Right of the banker who received payment on electronic image of a
(amendment and truncated cheque to retain the truncated cheques.
Misc. Provisions) 3. Certificate of text of print out of electronic image of truncated cheque by
Act 2002. paying Banker as proof of payment.
4. Doubling of the imprisonment term from one year to two years.
5. Doubling of penalty for the offence, i.e. up to twice the amount of the
instrument.
6. Doubling of the period of time to issue demand notice to drawer from 15 to
30 days.
7. Immunity from prosecution for nominee directors, who are nominated by
virtue of holding any office or employment in Central Government or State
Government or a financial corporation owned or controlled by the Central
Government or State Government.

8. Compounding of offence under the N.I.Act.
Empowering the magistrate to condone delay in filing complaint.
Bank’s slip or Memo having Bank’s Official mark denoting that the cheque
has been dishonoured shall be presumed to be the fact of dishonour.
Indian Contract Act, 1872:
Banking involves interaction between a banker and customer. A customer of a bank may be a depositor,
borrower or any other person merely utilizing one of the various services provided by the banker. The
interaction of a bank with its customer creates certain obligations and gives certain rights to both the bank and
the customer.
“All Agreements are contracts, if they are made by parties competent to contract, for a lawful consideration
and with a lawful object, and are not expressly declared to be void.”
All Banking transactions are therefore, separate contracts and the knowledge of Indian Contract Act is
essential for each Banker.
Section124. "Contract of indemnity" defined-

“A contract by which one party promises to save the other from loss caused to him by the contract of the
promisor himself, or by the conduct of any other person, is called a "contract of indemnity".
Sec. 126 "Contract of guarantee", "surety", "principal debtor" and "creditor" -

A "contract of guarantee" is a contract to perform the promise, or discharge the liability, of a third person in
case of his default. The person who gives the guarantee is called the "surety", the person in respect of whose
default the guarantee is given is called the "principal debtor", and the person to whom the guarantee is given
is called the "creditor". A guarantee may be either oral or written.
Section 148. ‘Bailment’, ‘bailor’ and ‘bailee’ defined. -

A ‘bailment’ is the delivery of goods by one person to another for some purpose, upon a contract that they
shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of
the person delivering them. The person delivering the goods is called the ‘bailor’. The person to whom they
are delivered is called the ‘bailee’.
Section 172. "Pledge", "Pawnor", and "Pawnee" defined -

The bailment of goods as security for payment of a debt or performance of a promise is called "pledge". The
bailor is in this case called "pawnor". The bailee is called "pawnee".
Section 182. "Agent" and "principal" defined -

An "agent" is a person employed to do any act for another, or to represent another in dealing with third
persons. The person for whom such act is done, or who is so represented, is called the "principal".
Indian Partnership Act, 1932:
Partnership is the relationship between persons who have agreed to share the profit of a business carried out
by all or any of them, acting for all. The relationship between partners is governed by Partnership Deed. The
act provides for registration of partnership and it is necessary that a banker dealing with partnership firm
should verify as to whether the firm is registered or not. This would help him to know all the names of the
partners and their relationship. The act of the partner shall be binding on the firm if done.
(a) In the usual business of the partnership.
(b) In the usual way of business.
(c) As a partner, i.e. on behalf of the firm and not solely on his own behalf.
Reserve Bank of India Act, 1934:

The Act was enacted on 6th March, 1934 to constitute the Reserve Bank of India and has been amended from
time to time to meet the demands of changing times. It has the following objectives:
 To regulate the issue of Bank Notes.

 For keeping reserves for securing monitory stability in India and,
 To operate the currency and credit system of the country to its advantage.
The Act deals with the following:
 Incorporation, capital, management and business of the bank.

 Central banking functions like Issue of Bank Notes, monitory control, acting as banker to the
Government and Banks, lender of last resort etc.
 Collection and furnishing credit information.
 Acceptance of deposits by Non Banking Financial Institution (NBFS).
 Handling Reserve Fund, Credit funds, publication of bank rate, audit and accounts etc.
 Penalties for violation of the provision of the act or direction issued there under.

Important Provisions
Scheduled Bank:
According to Section 2(e), Scheduled Bank means a bank whose name is written in the 2 nd schedule of RBI
Act, 1934 and which satisfies the conditions laid down in Section 42(6), - Paid up capital and reserves of not
less than `5 lac, satisfaction of RBI that the affairs will not be conducted by the bank in a way to jeopardize
the interests of the depositor.
It may be a State Co-operative Bank, a company defined in Companies Act, 1956, an institution notified by
Central Government for the purpose and a corporation or a company incorporated by or under any law in
force, in any place outside India. Any bank that is not included in the 2nd Schedule of RBI is called Non-
Scheduled Bank.
“Bank Rate Policy”:

Section 49 defines it as “The Standard Rate at which it (the bank) is prepared to buy or rediscount bills of
exchange or other commercial paper eligible for purchase under this Act”.
By varying the bank rate, the RBI can to a certain extent regulate the commercial bank credit and the general
credit situation of the country. The impact of this tool has not been very great because of the fact that the RBI
does not have a mechanism to control the unorganized sector. Further the money market in our financial
system is not fully developed, so that the Bank rate policy will have if desired impact on the financial system.
The present bank rate is 6.75% (as on 07.12.2016)
Cash Reserve Ratio:

Section 42 defines the Cash reserves of scheduled bank to be kept with RBI. Every scheduled bank has to
maintain with RBI an average daily balance the amount of which shall not be less than 3% of the total

demand and time liabilities and shall not exceed 15%. Presently the CRR is 4.00% (as on 07.12.2016)
Inspection of Banks:
The most significant supervisory function exercised by the RBI is the inspection of Banks. The RBI’s powers to
conduct inspections are contained in various provisions of the Banking Regulation Act, the most important
being Section 35. This apart, inspections may be necessary under the provisions of Section 23, 37, 38, 44,
44A, 44B and 45 of the Act.
Audit of Annual Accounts of Banks:

Banks have to close their books of accounts every year as at March 31st and prepare a Balance Sheet and
Profit and Loss account as prescribed in the III schedule of the Banking Regulation Act. These annual accounts
are required to be audited by auditors appointed by the Bank each year with the prior approval of the Reserve
Bank of India, as per Section 30(1A) of the Banking Regulation Act, in respect of private sector banks.
Section 10(1) of the Banking Companies [Acquisition and Transfer of Undertakings] Act, 1970 / 1980 provides
for audit of annual accounts of banks in the case of nationalized banks.
BANKING REGULATION ACT, 1949:
Some of the important provisions of the Act affecting day-to-day transactions at branches are discussed
hereunder. The amendments made operative by the Banking Laws (Amendment) Act, 1981 have also been
incorporated herein.
Powers Of Reserve Bank of India to control advances by banking company:
Section 21: Where the Reserve Bank of India is satisfied that it is necessary or expedient in the public
interest or in the interest of depositors or banking policy so to do, it may determine the policy in relation to
advances to be followed by banking companies generally or by any banking company in particular and when
the policy has been so determined, all banking companies or the banking company concerned, as the case
may be shall be bound to follow the policy as so determined.
Without prejudice to the generality of the power vested in Reserve Bank of India under sub-section (1), the
Reserve Bank of India may give directions to banking companies either generally or to any banking company
or group of banking companies in particular as to: -
- the purpose for which advances may or may not be made.

- the margins to be maintained in respect of secured advances.
- the maximum amount of advances or other financial accommodation which, having regard to the paid-up
capital, reserves and deposits of a banking company and other relevant considerations, may be made by
that banking company to any one company, firm, association of persons or individual.
- the maximum amount upto which, having regard to the consideration referred to in clause (3), guarantees
may be given by a banking company on behalf of any one company, firm, association of persons or
individual and;
- the rate of interest and other terms and conditions on which advances or other financial accommodation
may be made or guarantees may be given;
Every banking company shall be bound to comply with any directions given to it under this section.

Rates of interest charged by banking companies:
Section 21 A: "Notwithstanding anything contained in Usurious Loans Act, 1918 (10 of 1918) or any other
law relating to indebtedness in force in any State, a transaction between a banking company and its debtor
shall not be reopened by any court on the ground that the rate of interest charged by banking company in
respect of such transaction is excessive."
NOTES: By Banking Laws (Amendment) Act, 1983, a new section 21 A has been added in the Banking
Regulation Act, 1949. This section provides protection to banks in respect of rates of interest charged to the
borrowers' accounts and prohibits any court from reopening the loan transaction on the pretext that the rate
of interest charged is on the higher side. Reliance on this specific provision will help banks to ward off
defences taken by debtors before courts that the rates of interest charged by banks offend provisions of
Usurious Loans Act, 1918 or other similar Acts applicable to particular state/states.
However, when a suit is filed before the court, the transaction between the bank and its debtor comes to an
end in as much as the loan or advance is recalled. Hence, from and after the date of filing of suit, a court is
empowered under the provisions of Sec.34 of Civil Procedure Code to order that interest at such rate as the
court deems reasonable should be paid on the principal sum adjudged from the date of the suit to the date of
the decree with further interest at such rate, not exceeding six percent per annum, as the court deems
reasonable on such principal sum from the date of the decree to the date of payment or to such earlier date as
the court thinks fit, provided that where the liability in relation to the sum so adjudged had arisen out of a
commercial transaction, the rate of such interest to be awarded by the court may exceed six percent per
annum but shall not exceed the contractual rate at which moneys are lent or advanced by nationalised banks
in relation to commercial transactions.
Provision applicable to co-operative societies:
In terms of the Banking Laws (Application to Co-operative Societies) Act, 1965 (23 of 1965), the provisions of
Banking Regulation Act, 1949, are made applicable to co-operative societies, engaged in banking business
subject to appropriate modifications as provided for in Part V of the Act. Under the said provisions, no co-
operative society other than a co- operative bank shall use as part of its name any of the words "bank,"
"banker" or "banking" and no co-operative society shall carry on the business of banking in India unless it uses
as part of its name at least one of such words.
It has also been provided under section 20(1) of the Banking Laws (Application to Co- operative Societies) Act
that no co-operative society shall carry on banking business in India, unless it is Primary Credit Society
(catering to the needs of its members) or it is a co-operative bank and holds a licence issued in that behalf by
the Reserve Bank, subject to such conditions, if any, as the Reserve Bank may deem fit to impose.
Further, every co-operative society carrying on banking business as a co-operative bank at the commencement
of the Banking Laws (Application to co-operative societies) Act, 1965 shall, before expiry of three months from
such commencement and every primary credit society which becomes a primary co-operative bank after
commencement of the said Act shall, before the expiry of three months from the date on which it so becomes
a primary co-operative bank, apply in writing to the Reserve Bank for a licence under sub-section (2) of
section (20) of the said Act.
Branches should, therefore, ascertain and obtain a copy of the licence granted to a co-operative bank by the
Reserve Bank before opening/maintaining an account of a co-operative bank or of a co- operative credit
society which has become a co-operative bank after 1965.

Powers of Central Government to make rules for the preservation of records:
"The Central Government may, after consultation with the Reserve Bank of India, by notification in the Official
Gazette make rules specifying the periods for which:
 a banking company shall preserve its books, accounts and other documents and
 a banking company shall preserve and keep with itself different instruments paid by it." Periods for which
various records are to be preserved have been separately dealt with in this volume.
Return of paid instruments to customers: Section 45 (Z) of the Banking Regulation Act, 1949:
Where a banking company is required by its customer to return to him paid instruments before the expiry of
the period specified by rules made under this section, the banking company shall not return the instruments
except after making and keeping in its possession true copies of all relevant parts of such instruments, such
copies being made by a mechanical or other process which in itself ensures the accuracy of the copy.
The banking company shall be entitled to recover from the customer the cost of making such copies of the
instruments.
In this section "customer" includes a government department and a corporation incorporated by or under any
law."
BANKER'S BOOKS EVIDENCE ACT, 1891:

Banker's Books Evidence Act, 1891 is a legislation, which facilitates, in certain cases production of certified
copies of entries made in the books of a banker without the necessity of producing the original books of record
so that the normal functioning of a bank is not dislocated.
In terms of Sec. 2(3) of the Act, "Bankers' books" include ledgers, daybooks, cash books, account books and
all other books used in the ordinary business of a bank.
Sec. 2(4) defines legal proceedings:

"Legal proceedings" means (i) any proceeding or inquiry in which evidence is or may be given, (ii) an
arbitration and (iii) any investigation or inquiry under the code of criminal procedure or under any other law
for the time being in force for the collection of evidence, conducted by a police officer or by any other person
(not being a magistrate) authorised in this behalf by a magistrate or by any law for the time being in force.
Under Sec.2 (8) of the act, "Certified copy" means a copy of any entry in the books of a bank together with
a certificate written at the foot of such copy that it is a true copy of such entry, that such entry in contained in
one of the ordinary books of the bank and was made in the usual and ordinary course of business and that
such book is still in the custody of the bank.
Where the copy was obtained by a mechanical or other process, which in itself ensured the accuracy of the
copy, a further certificate to that effect, but where the book from which such copy was prepared has been
destroyed in the usual course of the bank's business after the date on which the copy had been so prepared, a
further certificate to that effect, each such certificate being dated and subscribed by the principal Accountant
or Manager of the bank with his name and official title.
Admissibility of bankers' books in evidence:

Sec.4: "Subject to the provisions of this Act (i.e. Bankers' Books Evidence Act, 1891) a certified copy of any
entry in bankers' book shall in all legal proceedings be received as prima-facie evidence of the existence of
such entry and shall be admitted as evidence of the matters, transactions and accounts therein recorded in
every case, where, and to the same extent as, the original entry itself is now by law admissible, but not
further or otherwise."
Note: The certified copy of an entry in a banker's book is made admissible under and by virtue of the provision
made herein. However, as stated a certified copy can be relied upon only to the extent as the original entry
itself is admissible in law but not further or otherwise.
Specific order of the court for producing bankers' books:
Sec. 5: "No officer of a bank shall in any legal proceeding to which bank is not a party be compelled to
produce any banker's book the contents of which can be proved under this Act, or to appear as a witness to
prove the matters, transactions and accounts therein recorded, unless by order of the Court of a Judge made
for special cause."
Notes: Where a bank is not a party to a legal proceeding and where contents of the banker's book are
required to be proved, they can be proved by certified copy under the Bankers’ Books Evidence Act, 1891, and
for the purpose no officer of a bank can be compelled to produce the book itself, unless an order of the Court
or a Judge is made for a special cause to produce the book itself.
Where copies of records are produced under a court's order, copying charges may or may not be allowed by
the Court at its discretion. But if the records are sought to be produced, under a witness summons requested
by a third party, claim should be put up to the court for reimbursement of traveling expenses and allowances
of the bank official producing such certified copies before the court as per court’s schedule of charges
including copying charges of Rs. 2/- per folio with a minimum of Rs. 3/-.
Form and manner of Certificate for Certified Copy:

All certificates furnished under this Act should be dated and signed by the Joint Manager or Branch Manager of
the branch mentioning his name and designation. Such certificate can be in either of the following forms and
manner depending upon the circumstances:
Where the certified copy is obtained from the book/s which is/are still in the custody of the
Bank:
"Certified that the above are true copies of the entries which are contained in the ordinary books of the Bank
and which were made in the usual and ordinary course of business of the Bank and that such books are still in
the custody of the Bank.
For Bank of Baroda

Sd/-
(Name)
Branch Manager/Joint Manager

Branch:
Date:
Where the certified copy is obtained from a copy of the original which is destroyed:
"Certified that the above are true copies of the entries which are contained in the ordinary books of the Bank
and which were made in the usual and ordinary course of business of the Bank and that the said true copies
have been made out from copies of the books or entries obtained by a process which itself ensures the
accuracy of the copies before the books containing the entries were destroyed in the usual and ordinary
course of the Bank's business."
For Bank of Baroda

Sd/-
(Name)
Branch Manager/Joint Manager
Branch:
Date:
(NOTE: for amendments as per IT Act 2000 refer to related act in this chapter)
COMPANIES ACT, 1956:

In India, companies are governed by Companies Act, 1956. All the companies are required to be registered
under Companies Act, 1956. A company is a juristic person created by law, having a perpetual succession and
common seal distinct from its members. Section 11 of the Companies Act provides that an Association or
Partnership consisting of more than 10 in the case of Banking Business and more than 20 in the case of other
business shall be registered under the companies act. If not registered, the said association or partnership will
be illegal.
The business and the objects of a company and the rules and regulations governing its management is known
by two important documents called Memorandum of Association and Article of Association.
Registration of charges:
Under Section 125 of the Act, the following charges created by a company, whether public or private, on the
security of its property or undertaking are void against the liquidator and/or any creditor of the company
unless the prescribed particulars of charge together with the instrument, if any, by which the charges are
created or evidenced or a copy thereof verified in the prescribed manner are filled with the concerned
Registrar of Companies within -30- days from the date of its creation:
 A charge for securing any issue of debentures;

 A charge on uncalled share capital of the company;
 A charge on any immovable property wherever situated or any interest therein;
 A charge on any book debts of the company;
 A charge not being a pledge on any movable property of the company;
 A floating charge on the undertaking or any property of the company, including stock-in-trade;
 A charge on calls made but not paid;
 A charge on a ship or any share in a ship.
 A charge on goodwill or a patent or a licence under patent or a trade mark or a copyright or a licence
under copyright.
As may be observed, equitable-mortgage created by deposit of title deeds, though without any instrument
evidencing the charge, requires registration. However, a charge created by pledge of movables does not
require registration.
Important changes in Company Act 2013:

 Statutory limit of borrowing Powers of the Companies(BCC: BR: 105/514 dated 18th November,
2013)(Provisions effective from 12.09.2013)
 Henceforth, in case the total borrowings of any company, whether private or public, exceeds the
aggregate of its paid up share capital and free reserves, apart from temporary loans as stated above,
and for sale, lease, disposal of its undertaking, including mortgage, Company shall be required to pass
Special resolution u/s 180 of 2013 Act.
Provisions effective 01.04.2014 (Circular no. BCC:BR:166 dated 29.04.2014):

- W.e.f. 1st day of April 2014, Section 186 (which deals with Loans and Investments by company) , Section
77, (Registration of Charges) The Companies (Meeting of Board and its Powers) Rules 2014 and The
Companies (Registration of Charges) Rules 2014 are also notified to come into force.
Section 186 - Loans & Investments by Company:

 Apart from other provisions as per section 186 (2) of the Companies Act, 2013, no company shall
directly or indirectly —give any guarantee or provide security in connection with a loan to any other
body corporate or person; exceeding sixty per cent, of its paid-up share capital, free reserves and
securities premium account or one hundred per cent, of its free reserves and securities premium
account, whichever is more.
- Section 186 (3) stipulates that where the giving of any loan or guarantee or providing any security or the
acquisition under sub-section (2-) exceeds the limits specified in that sub-section, prior approval by means of a
special resolution passed at a general meeting shall be necessary.
Section 185 - Loans to Directors etc.

 As per section 185, there is prohibition on giving any Guarantee or providing any Security by any
Company, for any loan taken by any of its Director or by any other person in whom Director is
interested, unless the corporate guarantor company in the ordinary course of its business provides
loans or gives guarantee or securities for the due repayment of any loan.
Section 77 - Duty to register charges, etc.

 Every company creating a charge on its property or assets or any of its undertakings (whether tangible
or otherwise) shall register the particulars of charge, signed by the company and the charge-holder
together with the instruments creating such charge, with the Registrar within 30 days of its creation.
This shall be applicable irrespective of charge being created within or outside India or whether the
property is situated in or outside India.
 It is observed that the details as mentioned in section 125 (4) of the Companies Act, 1956 are
withdrawn in the corresponding section 77 of the Companies Act, 2013, leaving room for wider
interpretation.
 In case the charge is not created within 30 days, the Registrar may, on application by the company
allow such registration to be made within a period of three hundred days.
 Any subsequent registration of a charge shall not prejudice any right acquired in respect of any
property before the charge is actually registered.
 It is clarified that now charge in respect of Pledge is also required to be registered with the Registrar of
Companies.
Certain powers to be exercised only by the board at its meeting:

Section 292 provides that the board of directors of a company shall exercise certain powers on behalf of the
company only by means of resolutions passed at board meetings. Those powers are (a) to make calls on
shareholders in respect of partly paid shares, (b) to issue debentures, (c) to borrow money otherwise than on

debentures, (d) to invest the funds of the company and (e) to sanction loans.
However, the board of directors may, by a resolution passed at a meeting, delegate the powers to borrow or
invest or make loans on behalf of the company to a committee of directors, the managing director, manager
or any other principal officer of the company or in the case of branch office of the company, a principal officer
of the branch office, on such conditions as the board may prescribe to the extent and for the purpose specified
in the resolution.
The exercise of powers by any officer to borrow, even under a power of attorney, will not be binding on the
company unless specified powers have been delegated under a resolution passed at a duly convened meeting
of the board of directors.
Restrictions on the powers of the board of directors to borrow funds:

Under Section 293 of the Act, the board of directors of a public company or a private company which is a
subsidiary of a public company cannot borrow money (apart from temporary loans obtained from the
company's bankers in the ordinary course of business) beyond the aggregate amount of the paid-up capital
and free reserves without the consent of the company in general meeting.
In case excess borrowings are authorised by the company in a general meeting, it must specify the maximum
amount upto which money can be borrowed. Temporary loans are defined as loans repayable on demand or
within six months, e.g. short term cash credit arrangements, discounting of bills and short term loans of a
seasonal character, but do not include loans raised for the purpose of financing expenditure of a capital
nature.
Companies Act, 2013 After getting approval of both the houses of Parliament, the long-awaited Companies
Bill 2013 obtained the assent of the President of India on 29 August 2013 and became Companies Act, 2013
(2013 Act). The 2013 Act has introduced several new concepts and has also tried to streamline many of the
requirements by introducing new definitions. The changes in the 2013 Act have far-reaching implications that
are set to significantly change the manner in which corporates operate in India.
Highlights of Companies Act 2013:
1. Immediate Changes in letterhead, bills or other official communications, as if full name, address of
its registered office, Corporate Identity Number (21 digit number allotted by Government), Telephone
number, fax number, email ID, website address if any.
2. One Person Company (OPC): It's a Private Company having only one Member and at least One
Director. No compulsion to hold AGM. Conversion of existing private Companies with paid-up capital up
to Rs 50 Lacs and turnover up to Rs 2 Crores into OPC is permitted.
3. Woman Director: Every Listed Company /Public Company with paid up capital of Rs 100 Crores or
more / Public Company with turnover of Rs 300 Crores or more shall have at least one Woman
Director.
4. Resident Director: Every Company must have a director who stayed in India for a total period of 182
days or more in previous calendar year.
5. Accounting Year: Every company shall follow uniform accounting year i.e. 1 st April -31st March.
6. Loans to director – The Company CANNOT advance any kind of loan / guarantee / security to any
director, Director of holding company, his partner, his relative, Firm in which he or his relative is

partner, private limited in which he is director or member or any bodies corporate whose 25% or more
of total voting power or board of Directors is controlled by him.
7. Articles of Association- In the next General Meeting, it is desirable to adopt Table F as standard set
of Articles of Association of the Company with relevant changes to suite the requirements of the
company. Further, every copy of Memorandum and Articles issued to members should contain a copy
of all resolutions / agreements that are required to be filed with the Registrar.
8. Disqualification of director- All existing directors must have Directors Identification Number (DIN)
allotted by central government. Directors who already have DIN need not take any action. Directors not
having DIN should initiate the process of getting DIN allotted to him and inform companies. The
Company, in turn, has to inform registrar.
9. Financial year- Under the new Act, all companies have to follow a uniform Financial Year i.e. from 1st
April to 31st March. Those companies which follow a different financial year have to align their
accounting year to 1st April to 31st March within 2 years. It is desirable to do the same as early as
possible since most of the compliances are on financial year basis under the new Companies Act.
10. Appointment of Statutory Auditors- Every Listed Company can appoint an individual auditor for 5
years and a firm of auditors for 10 years. This period of 5 / 10 years commences from the date of their
appointment. Therefore, those companies have reappointed their statutory auditors for more than 5 /
10 years; have to appoint another auditor in Annual General Meeting for year 2014.
CRIMINAL PROCEDURE CODE, 1973:
Sec.91: Summons/written order to produce document or other thing:

A police officer cannot ask for certified copies of Bank’s documents. He may be allowed to take the copies
thereof. But the copies should NOT be signed by the Bank's official. If he desires to have certified copies, he
should be requested to arrange for a summon to be served on the branch under the Banker's Books Evidence
Act.
Sec.94: Search of a place suspected to contain stolen property, forged documents, etc. The person
conducting the search has the authority to take possession of the stolen property, article, forged documents,
etc.
Sec.102: A police officer has power to seize documents/property alleged/suspected to have been stolen.
Sec.160: A police officer has powers to call a person to the police station and record his statement (oral
statement).
Sec.161: A police officer has powers to record the oral statement of a person supposed to be acquainted with
the facts and circumstances of the case.
Sec.162: The banker/person who has made the oral statement (under Sec. 160/161) should not sign the
recorded statement (i.e. oral evidence).
Sec.165: A police officer can search the house of an accused for recovery of some specific documents and
things required for an investigation into an offence.
Sec.349: Imprisonment or committal of a person refusing to answer or not producing the document.

INDIAN PENAL CODE, 1860:
Sec.409: Criminal breach of trust by public servant, or by banker, merchant or agent:

Whoever, being in any manner entrusted with property, or with any dominion over property in his capacity of
a public servant or in the way of his business as a banker, merchant, factor, broker, attorney or agent,
commits criminal breach of trust in respect of that property, shall be punished with imprisonment for life, or
with imprisonment of either description for a term which may extend to 10 years, and shall also be liable to
fine.
Credit Information Bureau (India) Limited – (CIBIL):
1. Credit Information Bureau (I) Ltd was set-up in January 2001, as a joint venture. CIBIL is a composite
Credit Bureau, which caters to both commercial and consumer segments. The Consumer Credit Bureau
covers credit availed by individuals while the Commercial Credit Bureau covers credit availed by non-
individuals such as partnership firms, proprietary concerns, private and public limited companies, etc.
2. CIBIL is established with a primary purpose of information sharing between Banks and Financial
Institutions for curbing the undesired growth of NPA.
3. Banks are required to provide periodical information to CIBIL in the prescribed format. It helps in
compilation of credit information, accessible to member banks to improve quality of credit proposals,
better credit management and Credit dissemination function
4. Banks, FIs, SFCs, NBFCs, Housing Finance Companies and Credit Card Companies are Members of
CIBIL
5. CIBIL- Access to consumer credit information:
 Identified branches have been given user ID.
 The sanctioning authority should confirm in his note having accessed CIBIL data and the
information on borrowers found in order.
 Consumer Credit information (CIR) fee is Rs.50, for the report which is to be recovered as
upfront fee from the applicant.
6. A Credit Information Report (CIR) is a factual record of a borrower’s credit payment history compiled
from information received from different credit grantors. Its purpose is to help credit grantors make
informed lending decisions quickly and objectively.
Know Your Customer (KYC) Guidelines:
Reserve bank of India has now come out with guidelines for “KNOW YOUR CUSTOMER” (KYC) with a view to
put in place systems and procedures to help control frauds, identify money laundering and suspicious activities
and for scrutiny /monitoring of large value transactions. The guidelines are also applicable to foreign currency
accounts / transactions.
The objectives of the KYC framework are to ensure appropriate customer identification. In this connection
branches to obtain all information necessary to establish the identity /legal existence of each new customer,
based preferably on disclosures by customers themselves. Mainly, KYC norms are for (1) Identification of the
customer, (2) Proper introduction of the customer and (3) monitoring of large value transactions.
1. Customer Identification – Banks to obtain all necessary information to establish the identity of each
new customer based on disclosures by customers themselves. The easy means would be documents such
as passport, driving license, Armed Forces ID cards, Income Tax PAN card, ID card issued by Government

of India, State Government accompanied by signature verification and photographs would help to establish
the identity of the person opening the account. Towards this, the following additional details need to be
collected while opening the account.
a. Employment details such as job specifications, name and address of the employer, length of service
etc.
b. Provide details about source of income and annual income.
c. Details of assets owned such as house, vehicle etc.
2. For identification of an individual / corporate - The identification to be through an introductory reference

from the existing account holder / a person known to the bank or on the basis of documents provided by
the customer. Board of Directors to put in place adequate policies to establish procedure to verify bonafide
identification.
3. Ceiling and Monitoring of Cash Transactions – Banks are required to issue TCs/ DDs/ MTs and TTs for
Rs.50000 and above only by debit to the customers’ account or against cheques and not against cash.
4. Further the applicants are required to furnish PAN on application for depositing Rs.50000 and above.
5. A close-watch to be kept on cash withdrawal and deposits for Rs.10 lacs and above in deposit, cash credit
or overdraft accounts and keep record of details of these large cash transactions in a separate register.
The branches to undertake periodical updation of KYC data (including photograph/s) after the accounts are
opened. The periodicity of such updation should not be less than once in five years in case of low risk category
customers and not less than once in two years in case of high and medium risk categories.
It has also been advised to enter all relevant information pertaining to customer and account in Finacle and
update CBS data regularly. In order to comply with the guidelines and ensure perfection in KYC and CBS data
(report can be generated through RPTRA) .
Financial Intelligence Unit (FIU-IND) was setup in Nov.2004 and reports directly to the Economic
Intelligence Council headed by Finance Minister. The responsibility of FIU includes collecting, analysing and
sharing of information acting as a central repository and coordinating with local and overseas agencies
involved in anti money laundering activities.
E-KYC:-
Acceptance of E-KYC as a process for KYC is launched by UIDAI-Unique Identification authority of India is a
vaid process for KYC verification .The information authenticated & transferred by UIDAI carrying demographic
details & photograph as a result of E-KYC Process shall be treated as sufficient proof of identity. E-KYC is also
accepted as a valid proof of identity for oprning of Basic SB a/c at BC/KIOSK level.
CKYC: - Central KYC Registry is a centralized repository of KYC records of customers in the financial sector
with uniform KYC norms and inter-usability of the KYC records across the sector with an objective to reduce
the burden of producing KYC documents and getting those verified every time when the customer creates a
new relationship with a financial entity.(HO: BR: 108:129 dated 06.08.2016)
Anti Money Laundering:

It is conversion of money, which is illegally obtained, so as to make it appear to originate from a legitimate
source. The main objective of the Act is:
1. To prevent, combat and control money laundering.

2. To confiscate and seize the property obtained from the laundered money.
3. To deal with any other issue connected with money laundering in India.
There are three independent steps or stages in Money Laundering -- Placement, Layering and
Integration
A) Placement - physical disposal of bulk cash proceeds derived from illegal activity
B) Layering - process of separation of illicit proceeds from their source by creating complex layers of
financial transactions it conceals the audit trail.
C) Integration– re-injection of laundered proceeds back to the economy
Punishment: Whoever commits the offence of money laundering shall be punished with the rigorous
punishment for a term not less than 3 years but which may extend to 7 yrs and shall also liable to fine, which
may extend to Rs.5 lacs. (HO: BR: 108:129 dated 01.09.2016 –KYC guidelines, Anti Money
Laundering /CFT & Obligations under PMLA Act 2002 -Master Circular).
FATCA- (Forign Account Tax Compliance Act):
FATCA promotes cross border tax compliance by implementing an international standard for the automatic
exchange of information related to US taxpayers. FATCA regulations require tax authorities obtain detailed
account information for US taxpayers on an annual basis. FATCA is intended to increase transparency for the
Internal Revenue Service (IRS) with respect to US persons that may be investing and earning income through
non-US institutions. While the primary goal is to gain information about US persons, FATCA imposes tax
withholding where the applicable documentation and reporting requirements are not met.
In order to comply with the requirement of reporting under FATCA by our Government, Branches were advised
as under.
1. As per FATCA all accounts as on June 30th 2014 will be treated as “Pre Existing Accounts” and new
accounts opened from July 1st, 2014 should be FATCA compliant.
2. To obtain undertaking for new accounts opened after 1 st July, 2014 in all types of accounts of
Individuals and Non Individuals and to keep the same with account opening form.
3. FATCA Declaration forms were revised as Annexure – I, For Individuals Including Sole proprietor
Annexure – II, For Entitles i.e. Proprietorship Firm, Partnership Firm, Company, HUF, Trust,
Association etc- and Part-D containing definitions under FATCA. (If controlling persons are more than
3, obtain separate declaration forms from them.) (HO: BR: 107:139 dated 14.09.2015)
Citizen’s Charter
Citizen Charter gives the customers’ right as well as their demands on service from the bank. Citizen’s charter
covers the following:
1. Business hours to be prominently displayed at the branches.

2. Counters to remain attended to during business hours.
3. Space for customers in banking hall to be kept clean and tidy with proper seating arrangements.
4. Branch premises to be kept clean and hygienic.
5. Time norms for common Banking transactions to be displayed prominently in the Banking Hall.
6. At large branches “May I Help You” – counters to be located for customer’s convenience.
7. Commencement of working hours of Bank staff to be 15 minutes before commencement of Banking
hours.
8. Bank’s name board to be clean and visible with suitable lighting arrangements.
9. Branch authority’s name and designation to be displayed on Name Plate.
10. Name, address, telephone number and fax numbers of Regional and Zonal Authorities to be displayed
in Banking Hall.
11. Customer’s Suggestions to be invited for better customer services.
Banking OMBUDSMAN Scheme 2006:
1. Reserve Bank of India has announced the Banking Ombudsman Scheme, 1995 under section 35 of Banking
Regulation Act 1934. It was revised w.e.f. 14.6.2002 , which has been further revised on 01.01.2006
2. The Ombudsman has the authority to look into the complaint in the following areas;
 Any complaint relating to Banking services.
 Refer the complaint to concerned bank and try to facilitate redressal or settlement by agreement
between the bank and aggrieved party.
 If complaint is not settled by agreement within the period of one month, pass an award after listening
to both the parties.
 In the event Bank is unable to comply with the Award for any reason whatsoever, the Bank shall file a
review petition within one month from the date of receipt of copy of award.
 Any dispute between banks or bank and its constituents may be referred to for arbitration provided
disputed claim does not exceed Rs. 10 lakhs.
 The time limit for award is fixed as six months from the date of first hearing.
3. For approaching to OMBUDSMAN for banking complaints following are the conditions
 Bank has rejected the complaint and/or no reply within one month.
 A period of 1 year has not elapsed after bank had rejected the representation.
 It is not subject matter already settled by Ombudsman.
 It is not pending with any court.
4. All Commercial banks, RRBs and Schedule Primary Cooperative Banks are covered.
5. The appeal against the Award can be filed within 30 days to the Appellate Authority (DGM RBI).
Consumer Protection Act (COPRA)-1986:

1. COPRA was initially enacted during 1986 and implemented w.e.f. 15.4.1987. The purpose of this act
was to enable the consumers to enforce his right as a consumer through simple legal procedures.
Further, on 17th December 2002, an amendment Act 2002 has been passed and implemented w.e.f.
15th March, the consumer day.
2. The act covers, all goods services including banking, insurance, transportation, electricity, processing
etc.
3. Any consumer individually or jointly, consumer organisation can file complaint within -2- years from the
date of cause of action preferably within 3 months.
4. Legal heirs/ can continue as complaints of unfair trade practice or restrictive trade practices against
servive provider and charging of prices for the goods in excess of the prices displayed.
5. Definition of complaint amended to include complaints of unfair trade practices or restrictive trade
practices against service provider, failure to disclose final results of scheme of gifts & prizes amt.

Prescribed fee payable on every complaint as court fees - no fees earlier
6. A person availing services for commercial purpose will not be a consumer under the act.
7. The authority or jurisdiction are;
a) District forum for a complaint up to Rs. 20 lakhs.
b) State Commission up to Rs. 100 lakhs.
c) National Commission above Rs. 100 lakhs.
8. Complaints Appeals against the orders of district forum can be entertained only if 50 % amt awarded
or Rs.25000/- 35000/- & 50000/ whichever is less is deposited for District, State & National commission
respectively.
Banking code and Standards Boards of India (BCSBI) 2006-
 A comprehensive Banker’s Fair Practice Code prepared by Indian bank Association has been used (Based
on Shri S S Tarapore Committee Recommendations) as a bench mark standard by the BCSBI. The code
provides protection to the customers on day-to-day basis on banking operations.
 This is a voluntary code, which sets minimum standards of banking practices to be followed by banks when
attending to customers. It has the following objectives –
1. Promote good and fair banking practices by setting minimum standards,
2. Increase transparency
3. To encourage financial institutions to achieve higher operating standards,
4. Promote cordial and fair relationship between bank and customer,
5. Bring confidence in the banking system,
6. This code is applicable to almost all services of banks.
7.
Alteration in Cheques:
 A policy prohibiting alteration/correction on cheques has been introduced by RBI, to curtail cheque frauds
on account of alterations in the various fields of cheques and to give protection to Customer as well as
Banks.
 It will be applicable only for cheques cleared under the image based Cheque Truncation System (CTS).
Collecting bank should ensure, ab initio that such cheques are not accepted for presentment in CTS w.e.f.
Dec.1, 2010, however for time being it is not applicable to cheques cleared under other clearing
arrangement such as MICR clearing, Non-MICR clearing. Over the counter collection (for cash payment) or
direct collection of cheques outside the clearing house arrangements.
Information Technology Act 2000:
The Act has given legal recognition to Electronic Data, Electronic Signature, Interchange, Electronic Commerce
(E-Commerce), more specifically to electronic records such as data recorded, data generated through
computer network, sound stored, received or sent in an electronic form or stored in micro film or computer
generated micro fiche, etc., thereby making significant headway from the era of recognition of paper based
documents alone as legal mode.
Consequential amendments to Reserve Bank of India Act, Evidence Act, Indian Penal Code and Banker’s Books
Evidence Act.

Foreign Exchange Management Act (FEMA) 1999:
Foreign Exchange Management Act (popularly known as FEMA) was enacted in 1999, it came into effect from
1st June 2000. FEMA has made considerable improvement of FERA Act 1974.
An Act to consolidate and amend the law relating to foreign exchange with the objective of facilitating external
trade and payments and for promoting the orderly development and maintenance of foreign exchange market
in India.
“Foreign exchange” under section 2(n) means foreign currency and includes, -
 deposits, credits and balances payable in any foreign currency.
 Drafts, travellers cheques, letters of credit or bills of exchange, expressed or drawn in Indian currency
but payable in any foreign currency.
 Drafts, travellers cheques, letters of credit or bills of exchange drawn by banks, institutions or persons
outside India, but payable in Indian currency.
 “Foreign security” under section 2(0) means any security in the form of shares, stocks, bonds,
debentures or any other instrument denominated or expressed in foreign currency and includes
securities expressed in foreign currency, but where redemption or any form of return such as interest
or dividends is payable in Indian currency.
Capital and Current Account Transactions:
Current account transaction’ and ‘capital account transaction’ are two new expressions defined in conformity
with the convertibility of rupee on current account. All current account transactions are now permitted subject
to certain restrictions.
All capital account transactions are now permitted subject to certain restrictions. Sections 5 and 6 of FEMA
provide for the convertibility of rupee into other currencies for “current account transactions” which are now
freer as compared to the rupee and also, the convertibility on capital account transactions.
Separate definitions of “capital account transaction” and current account transaction” have been given in FEMA
Section 2(e) read with section 6(1) and 6(3) deals with “capital account transaction”. While the general
exemption has been granted in respect of capital account transactions, it has been provided that the Reserve
Bank of India is empowered to place restrictions on specified capital account transactions. A review of various
Regulations shows that the capital account transactions are now governed by greater number of restrictions
than the current account transactions.
Capital account transaction means a transaction which alters, the assets or liabilities, including contingent
liabilities: outside India of persons resident in India; or assets or liabilities in India of persons resident outside
India; and includes transactions referred to in section 6(3).

Types Of Customers
A bank opens accounts for various types of customers like individuals, partnership firm, trusts, companies, etc.
While opening the accounts, the banker has to keep in mind the various legal aspects involved in opening and
maintenance of these accounts. Normally banks have to deal with the following types of customers:
Individuals:
1. Normally the account should be opened with cash only and not with cheque, drafts. This is to protect
the bank’s interest under section 131 of the N. I. Act.
2. Branch to follow all the guidelines for opening of the accounts under ‘KYC’ Norms as mentioned in the
chapter on deposits.
3. The account can be opened in the single name or joint name. Various types of operating instructions
for the joint accounts of the individuals are as follows:
a) Jointly,
b) Either or Survivor,
c) Former or survivor,
d) All of them jointly or Survivors or Survivor,
Minor:
According to Section 3 of Indian Majority Act, a person attains majority at the age of 18, except in case where
a guardian is appointed by a court, where the age of majority is 21. As per Indian Contract Act, a minor is not
capable to enter into the contract and any contract with the minor is void. Following points are to be kept in
mind:
 A minor of 10 years can open SB account and a minor of 14 years can open Current account in his
name. However, there is a specific ceiling to maintain a maximum balance in the account/s.
 Operations in the account – by minor or by natural guardian
 Legal guardian cannot open a joint account
 No overdraft is created in the account
 Date of majority to be recorded in the account
 No joint account of two or more MINORS TO BE OPENED.
Illiterate Persons:
Some times illiterate person will approach to the bank / branch for opening of the account. As per Indian
Contract Act illiterate persons are competent to enter into contract so they can open and maintain bank
accounts. However, following precautions are to be taken while opening and maintaining such accounts:
 No cheque book should be issued
 No current account should be opened
 Joint account of two illiterates (close relatives can be opened) – operational instructions should be
jointly or survivor and not either or survivor
 Joint account of illiterate with literate close relative can be opened but no cheque book should be
issued.
Blind Persons:
As per Indian Contract Act, blind persons are competent to enter into contract. They can open and maintain
any type of bank accounts. However, following precautions are to be taken while opening and maintaining
such accounts:
 Various risks in operations of the account should be explained to the account holder
 Joint account with close relative can be opened
 Cash receipts and payments should be made in presence of witness preferably bank customer
 Account opening form etc. should be stamped “blind person”
 For withdrawal of the amount he/ she should come personally
Partnership Firms:
Definition of partnership – section 4 of Indian partnership act 1932 “ the relationship between persons who
have agreed to share the profits of a business carried on by all or any of them acting for all”
The account to be opened in the name of the firm. The account opening form should be signed by all the
partners. A letter of partnership duly signed by all the partners should be obtained. When a minor is admitted
as partner in the firm, a letter of restrictive operations to be obtained.
Specific operational instructions duly signed by all the partners to be obtained. Stop payment of the cheque by
any partner even in case of it is signed by another partner. Death, insolvency or lunacy of any partner –
operations in the account should be stopped.
Limited Company:
Joint stock Companies are governed by the Companies Act, 1956. A Company is incorporated under the
Companies Act. The Company is a separate entity from its members.
There are three types of the companies:

(1) Public Limited Company (2) Private Limited Company (3) Government Company.
Certified true copy of the following documents to be obtained at the time of opening of the account.
1. Certificate of incorporation
2. Certificate of commencement of business (in case of public limited Co.)
3. Memorandum of Association
4. Articles of Association
5. Board Resolution to open an account with the bank and operational instructions
6. List of the present directors.
Following care to be taken while maintaining such accounts:

1. The account opening form should be signed as per the resolution passed by the Board
2. Introduction is not necessary for opening of the account because certificate of incorporation issued by
registrar of the companies itself serve the purpose
3. Death of a director does not affect the operation in the account
4. A cheque payable to the company should never be deposited in the personal account of director
5. While granting any credit facility, purpose clause of MOA of the company must be verified
6. Provisions of section 293(1)(d) of the Companies Act 1956 regarding borrowing in excess of Net worth
to be observed.
Limited Liability Partnership:
It is an alternative corporate business vehicle that provides the benefits of the limited liability , but allows its
members the flexibility of organizing their internal structure as a partnership based on a mutually arrived
agreement.every LLP shall have at least two partners.
The following persons can be partners in LLP. For example individuals, LLPs, Companies,Foreign Limited
Liability Partnerships, LLPs incorporated outside India ,Foreign companies etc. A Cooperative society , society
and corporation can not be a member of LLP.A person of unsound mind , unischarged insolvent , minor can
not be admitted as partner of LLP a they lack capacity to contract.
LLP agreement is the main document governing the relationship between the partners inter se & partners &
the LLP.signature of each & every partner is not required in the documents executed on behalf of LLP as it is a
corporate entity.
Trust Accounts:
A trust is an obligation annexed to the ownership of property, arising out of confidence reposed in a person/
group of persons and accepted by him/them for the benefit of another or of another and the owner.
The persons who, accepts the confidence are called trustees. The instrument/ document by which the trust is
created is called the ‘Trust Deed”.
While opening of the account of a trust following documents are required to be obtained:
1. Copy of the trust deed
2. Copy of the certificate issued by charity commissioner.
3. List of present trustees,
4. Resolution passed by the trust to open and maintain an account with the bank.
5. Operational instruction to operate the account.
Executor and Administrator:

A person to whom the execution of a will is entrusted by the deceased (testator) is called the executor of the
will. The executor is supposed to obtain a probate from the court.
For a person who dies without leaving a will (intestate), the court appoints a person to look after the property
is called the administrator.
Following precautions are to be taken while opening such accounts:
1. A copy of the probate or letter of administration should be obtained and verified with the original
2. Account in the name of executor /administrator is opened in the style “xyz executor/administrator of
the estate of …….deceased”
3. No credit meant for the account of the estate of the deceased is made to the accounts of
executor/administrator.
Joint Hindu Family:

The concept of HUF is recognized by law. As per the law whenever a Hindu dies, leaving behind a business, it
passes on to the heirs and property becomes the Joint Hindu Family property. The eldest member is called
‘Karta’ and the male & female (except widow) members of the family are called ‘coparceners’. Following
precautions to be taken while dealing with such accounts:
1. HUF letter should be signed by the karta and all the major co-parcerners
2. The account is to be operated by the ‘Karta’ only
3. Names of the minor coparceners should be kept on record and on attaining the majority a fresh letter

of HUF duly signed by all to be obtained
4. Death, Lunacy, insolvency of the members does not effect the operations in the account
CLUBS, ASSOCIATIONS:
Clubs, Associations, Committees, Funds etc are not a legal entity unless they are incorporated under the
Companies Act. As they have no contractual powers. Following points must be kept in mind while dealing with
such accounts:
Clubs can be registered or un-registered. While opening an account in the name of registered club, following
documents should be obtained:
1. Copy of Certificate of Registration,
2. Copy of bye law, rules and regulations.
3. Copy of resolution of the managing committee/governing body etc..
4. A list of the members of the managing committee.
5. No advance including TOD should be permitted.
CO-OPERATIVE SOCIETIES:
The Society is registered under the Society Registration Act 1960. Documents to be obtained for opening of
the account:
1. Copy of Certificate of Registration,
2. Copy of bye law, rules and regulations.
3. Copy of resolution of the managing committee/governing body etc.
4. A list of the members of the managing committee.
5. No advance including TOD should be permitted.
LOCAL AUTHORITIES:
1. Examples are Municipal Corporations, Zilla Boards etc.
2. Bank must obtain copy of such statute and find out the provisions as to who would authorize opening
of the account.
3. Generally these authorities have managing committees, with president, vice president and treasurer
and the treasurer is given powers to open and operate the account.
4. No Overdraft should be given in the account
GOVERNMENT DEPARTMENTS:
1. Copy of the govt. notification should be obtained authorizing the concerned person to open and
operate the account
2. Certified copy of rules and regulations framed by the department for opening and operations of such
accounts should be obtained

Methods of Charging of Securities
Charging of securities means making it available as a cover for an advance. This means the bank's right over
the security is ensured by legal procedures. Selection of security should be appropriate depending upon the
type of credit facility, type of borrower and purpose.
Once the appropriate security is selected bank's charge on the security should be ensured by observing
necessary formalities, so that in case of default by a borrower, the security will be available to the bank to
recover its dues.
The important six methods of charging of securities are given below with brief explanation.
Pledge:
Section 172 of the Indian Contract Act, 1872 defines 'Pledge' as 'the bailment of goods as security for
payment of debt or performance of a promise is called 'pledge'. The bailor is, in this case, called the
'pledger' and the bailee is called the 'pledgee'.
Above definition reveals that: Pledge means bailment of goods, Its purpose is to secure payment
of a debt or To secure performance of a promise. Any movable property can be pledged. Delivery
(actual or constructive) is necessary to complete a pledge.
In case of Bank's advance against the pledge of goods, customer is called the 'pledger' and the bank is
called the 'pledgee'. Where pledged securities or goods are indivisible, the pledgee can sell the
securities or goods only of that much quantity by which the loan amount will be satisfied.
Hypothecation:
The term 'hypothecation' is described as "Charge against property for an amount of debt where neither
ownership nor possession is passed on to the creditor." Hypothecation is defined in none of the acts.
In case of pledge, the borrower's goods are placed in the bank's possession under its own locks
whereas in the case of hypothecation, goods remain in the possession of the borrower.
If the borrower fails to liquidate the advance granted to him against hypothecated goods, under
agreement, he has to give the possession of the goods to hypothecatee (bank). At this stage,
hypothecation converts into pledge and the banker as hypothecatee enjoys the powers and rights of a
pledgee.
Mortgage:
It is the transfer of an interest in specific immovable property for the purpose of securing the payment
of money advanced or to be advanced by way of loan, an existing or future debt or the performance of
the agreement which may lead to a pecuniary liability. The borrower is called the 'mortgagor' and the
lender the 'mortgagee'.
Forms of mortgage: As per Sec. 58 of the Transfer of Property Act, there are six types of mortgages:
(1) Simple mortgage
(2) Mortgage by conditional sale
(3) Usufructuary mortgage
(4) English mortgage
(5)Anomalous mortgage
(6) Mortgage by deposit of title deeds/ equitable mortgage
Generally only two types of the mortgage are preferable by the banks
(1) Simple Mortgage and (2) Equitable mortgage
Simple Mortgage;
according to section 58 (b) of the Transfer of Property Act, a simple mortgage is a transaction whereby
without delivering the possession of the mortgaged property, the mortgagor binds himself personally to
pay the mortgage money and agrees, expressly or impliedly, that in case of default the mortgagee shall
have a right to cause the mortgage property to be sold by a decree of the court.
Equitable mortgage or Mortgage by deposit of title deeds:

According to section 58(f) of Transfer of Property Act, where a person delivers the documents of title
to the immovable property to the creditors with an intention to create a security thereon, the
transaction is called equitable mortgage.
Assignment
Assignment means transfer of a right of an actionable claim, existing or future. 'Actionable claim'
means a claim to any debt, other than a debt secured by mortgage of immovable property, by
hypothecation or pledge of movable property, or to any beneficial interest in movable property in
possession, either actual or constructive, of the claimant, which the Civil Courts recognise as affording
grounds for relief, whether such debt or beneficial interest be existent, accruing, conditional or
contingent.
Section 130 describes the manner in which actionable claims can be transferred, as follows:
The transfer of an actionable claim, whether with or without consideration, shall be effected only by
the execution of an instrument in writing signed by the transfer or his duly authorised agent, shall be
complete and effectual upon the execution of such instrument, and thereupon all the rights and
remedies of the transfer, whether by way of damages or otherwise shall vest in the transferee,
whether such notice of the transfer is hereinafter provided be given or not.
Lien:
Lien is the right of a creditor to retain in his possession the goods and securities owned by the debtor
until the debt has been discharged, but has no right to sell the goods and securities so retained. Lien is
of two types, particular and general.
Banker's right of lien:
Banker has a right of general lien against his borrowers. Section 171 of the Indian Contract Act, 1872
confers the right of general lien on the bankers as "Banker may, in the absence of a contract to the
contrary, retain as a security for a general balance of account, any goods bailed to them."
There are certain unique features about bank's right of general lien, these are:
Right of sale is also available under bank's right of lien. Therefore, it is said that banker's lien
tantamount to an implied pledge.

The banker's right of lien is not barred by law of limitation. The Limitation Act only bars the remedy
and does not discharge debt. As such, banker has a right of lien against time barred debt also. When
banker exercises this right, property of goods remains with owner even though the same is in
possession with the bank.
Right of set-off:
Banker has right of set-off between two or more accounts maintained by a customer, if one of them is
in debit and their relationship in both the accounts is of debtor and creditor.
The right of set-off is a statutory right which enables bank to combine several accounts of a customer
in his own right unless there is any agreement expressed or implied to the contrary. Before exercising
the right of set-off a reasonable notice should be given to a customer to avoid dishonoring of cheques
drawn by the customer being unaware of the situation.
Though the right of set-off is available to a banker as his legal right banks take letter of set-off from
customer. It helps the bank to overcome future legal complications and it dispenses with the need for
notice.
Gist of few Liability & Retail products

Domestic Liability Products: At a Glance
Products Who can open A/c Mini. & Max. /av. ROI Remarks/USPs
balance/Deposit
Baroda Resident individual QAB: 1. Roaming facility.
Advantage (single/Jointly) Rural/SU 500 4.0 % p.a 2. Internet Banking. 3. Free ATM cum Debit Card.
Savings Minor Individually U/M 1000 .payable 3. Free opening of Demat a/c + 50% discount of annual
Bank A/c if completed 10 half yrly maintenance charges for 1 year.
Years of Age, Min balance 4. Immediate credit of outstation cheques up to
Club, Societies, charges- Rs.100/- On daily Rs.15000/-
Trusts, Qrtly. product 5. Interest will be paid on delayed collection of
Associations & +S.Tax basis instruments as per norms.
Charitable 6.Documents required for open an account:
Organizations Max. Bal- No limit, *Passport size photograph
except for Minor of *Proof of permanent residence
10 to 14 yrs age *Photo identity
Rs.1 Lac *PAN &/or IT Declaration (Form 60/61)
Closure of Account 7.100 withdrawal per half year shall be allowed as per
within One Year- General SB bank a/c .In case of debits more than 100 per
Individual `100/- half year ( excluding Auto sweep transactions & service
and Others ` 200/ charges transactions) a charge of Rs 10/- plus service tax
plus Service Tax per debit transaction shall be levied.

balance/Deposit
Baroda Resident individual Minimum bal. 4.0 % 1. Free DD/BC/MT/TT for personal use & remittance. (out
Subh (single/Jointly) Rs.15000/- AQB. p.a of pocket exp. To be recovered)
Savings Minor Individually Max- No limit, .payable
Bank A/c if Completed 10 except for Minor of half yrly 2. Free collection of outstation chqs, ATM card, unlimited
Years of Age 10 to 14 yrs age Cheque leaves & welcome Kit.
(Rural & Rs.1 Lac 3. Immediate credit of outstation chqs upto Rs.25000/-
SU) 4. Priority for Lockers allotment
Non Maintenance 5. Account pre-closer charges
Of QAB – ` 750/- (<12 M) Rs.300+S Tax)
+ Service Tax per 6. Waiver of processing charges on Retail Loans.
quarter 7. Interest will be paid on delayed collection of
instruments as per norms.
1. Auto sweep to SDR for 181 days in multiple of

Baroda Resident individual Minimum bal. 4.0 % p.a Rs.10000/ & reverse sweep in multiple of Rs.1000/ on
Super (single/Jointly) Rs.20000/ AQB. .payable LIFO basis. If the customer desires, Branch can increase
Savings Minor Individually Qtrly Sweep Out amount of Rs. 10000/- in the multiples of Rs.
Bank A/c if Completed 10 Min balance 10000/-. The Threshold Limit for sweep facility is
(For Metro Years of Age charges- increased from Rs. 20000/- to Rs. 50000/-.
& Urban Rs.1000/-Qrtly. 2. Free DD/BC/MT/TT for personal use & remittance to
branches) +S.Tax Non CBS br.
Max. Bal- No limit, 3. Free collection of outstation chqs, ATM card, Free S.I.
except for Minor of and unlimited cheque leaves & welcome Kit.
10 to 14 yrs age 4. Immediate credit of outstation chqs upto Rs.25000/-
Rs.1 Lac 5."Senior citizens will get additional interest on the short
deposits as per extant guidelines (presently 0.5% higher
Circular reference interest is payable)"
BCC:BR:96:45 6. Priority for Lockers allotment
Dated 31st 7. 25% discount on Depository Services.
Jan’2004 and 8.Account pre-closer charges (<12 M) Rs.500+S Tax
BCC:BR:108:496 9. Interest will be paid on delayed collection of
Dated 20th instruments as per norms.
October 2016 11.Cash withdrawal against withdrawal slip is allowed up
to 25000/- provided the account holder comes personally
with passbook and his/ her scanned photograph is
available in the system.

balance/Deposit
Baroda All resident The Account can -50- Cheque Leaves shall be allowed free in a year.
Basic individuals, who be opened with 4.0 % However, number of withdrawals not to exceed FOUR in
Savings are eligible to Zero Balance also p.a a month.
A/c open a savings .payable Debit Card and Internet Banking facility shall be available
bank account with There is no ceiling half yrly to the accountholders.
the branch. The on the amount Standing instruction, ECS (debit) etc. can be made
product is ideally deposited/held in available to such accounts (earlier it was not allowed).
suited for all the account. No restriction on turnover / deposit by adult individual/s.
common people, However, in Introduction and KYC norms will be observed in the
This especially who are accounts of minors account as per extant guidelines.
product is having low and of age between 10 Interest rate, periodicity and method of application of
not for middle income years and 14 years interest will be similar to our usual Savings Bank A/c.
Non such as wage maximum amount There will be NIL Charges levied for non operation/
Resident earners, workers that can be kept in activation of in- operative/ dormant a/cs
Indians, in unorganized the account is Rs. Customers, having " Baroda Basic Savings Bank Deposit
Trusts, sectors, house 1 lakh Account” will not be eligible to open any other Savings
Societies wife, students and Bank in Bank and they will be required to close their
etc. all other other Savings Bank accounts, if any within 30 days of
individuals having opening of Baroda Basic Savings Bank Deposit Account
low net worth to
inculcate a habit
of savings through
this basic banking
product.
Baroda Any resident Min. Rs. 1000/-, 4.0 % 1. Life Insurance cover from India First Life Insurance co.
Jeevan individual of 18 Min. balance Rs. p.a Ltd. Up to an amount of Rs.5 lac (Min. Rs.1 lac &
Suraksha yrs, Max. not 1000 on daily .payable thereafter in multiples of 1 lac) on payment of premium
completed the age basis. Minimum half yrly at cost of customer.
of 60yrs. balance charges 2. Auto sweep over Rs.5000 in multiples of Rs.5000,
Jt a/c also Rs.100+ST per reverse sweep in multiples of Rs.1000/- on LIFO pattern.
(max.2) Existing quarter 3. Free Debit card/internet banking & BOBCard Silver for
a/c may converted Admini. Charge first year with accident insurance cover of Rs.1
@10% of prem. lac(BOBCD ltd)
Staff also eligible Amt collected shall 4. Immediate credit of outstation cheques up to
be reimbursed by Rs.15000/- 5. Free SI 6. Consent cum autho.lter
IFLI to our bank. 5. Income tax benefit for the premium amount under
(BCC:BR:103:16 section 80©
dated 12.01.2011) 6. Existing Savings bank accounts can also be converted
into “Baroda Jeevan Suraksha Savings Bank A/c”.
7. 100 withdrawal per half year shall be allowed as per

General SB bank a/c .In case of debits more than 100 per
half year ( excluding Auto sweep transactions & service
charges transactions) a charge of Rs 10/- plus service tax
per debit transaction shall be levied.

balance/Deposit
Age Group Rate Basic premium Per Lac Per
per lac payable Annum
w.e.f. 01.04.15
More than 18 yrs Rs. 125+ ST

and upto 35 yrs
More than 35 yrs RS. 259+ ST
and upto 50 yrs
More than 50 yrs Rs. 697+ ST
and upto 60 yrs
Baroda
Salary a) Salary Min-Rs. Zero 4.0 % 1. Cheque book facility available.
Advantage account of No minimum p.a 2. All other terms of General Saving Bank will apply.
Saving employees. balance charges .payable half yrly 3. Baroda Salary Advantage SB a/c: -
Bank b) Agents Max- No limit, -Employees of Private Limited Companies may be
Account of life & except for Minor considered by Regional Authorities on selective basis
general of 10 to 14 yrs after ascertaining their standing and banking relationship
insurance, age Rs.1 Lac with us, if any.
[Zero c) Students - Minimum age of 21 years.
Balance & - Minimum take home Salary should not be less than Rs.
Saving d) Farmers 5000/-.
Bank A/c] getting - Maintaining satisfactorily conducted salary a/c with the
compensati Bank at least for three months.
on 4. OD limit 90% of net salary of average of last three
months subject to Maximum of Rs.1 lac
5. Period: 12 months, subject to annual review.
6. Third party guarantee shall be obtained. Cross
guarantee may be accepted.
7. Documents: D. P. Note, A single document shall be
obtained from the customer (Annexure - III) & General
form of Guarantee.
8. The account is to be brought into credit once in 60
days.
9. On the Overdraft the applicable Rate of Interest will be
@ Base Rate plus 5.50% subject to changes from time to
time.
Baroda Resident No Min. balance 4.0 % 1. OD facility in Saving Bank Account.

Bachat Individuals required & No p.a 2. Min. FDR amount Rs. 10000/- & in multiple of Rs.
Mitra Singly or min. bal. Charges .payable half yrly 1000/- for 12 to 120 Months.
(Overdraft Jointly with in SB 3. OD- 80 % of FD amount with Min. Rs. 8000/- & Max.
facility in min. age of Max- No limit Rs. 100000/-
Saving 18 yrs. 4.Security-Pledge of FDR duly discharged.
A/C) FDR min. 10000/- 5. Processing/Documentation-NIL
& in multiples of 6. ROI- 1.00% above FDR rate With Min. Rs.25/- per
1000/- month.
7. Cheque Book, Nomination Facility available.

balance/Deposit
Baroda Pensioners A/c opening by 4.0 % Auto sweep beyond Rs.3000 to Short deposit of 180
Pensioner Min- Rs.5/-, Min. p.a days in multiples of Rs. 1000, Reverse sweep in multiples
Saving BOB staff Balance Rs. .payable half yrly of Rs.1000/- on LIFO pattern.
Bank A/c pensioners 3000/- on daily Free transfer of funds through DD/BC up to max. of Rs.
Wef are also basis, if not Min, 1.00 lac per month.
15.01.11 eligible balance charge Free coll. of outstation cheques/ DD.
Rs. 100 + ST per Free Debit card/Internet Banking and BOBCARD silver for
quarter 1st year with accidental death insurance up to 1 lac.
. Free execution of SI.
Free unlimited cheque Book
immediate credit of outstation cheques upto Rs.25000/-
25% discount on Demat a/c
9. OD facility in SB a/c up to max. of 2 months pension.
Intt on OD Base Rate+5.50%
10. Toll Free Help Line exclusively for pensioners:
18002333656.
Baroda All Min-Rs.10000 & 4.00 % p.a. payable 1.Auto sweep amount will be in multiple of Rs.5000/- in
Centenary Individuals Max- no ceiling, quarterly on daily excess of threshold limit of Rs. 10000/- [default setting,
Saving . except for Minor product basis w.e.f. looking to customer needs, liberty to fix higher than Rs.
Account Not of 10 to 14 yrs 01.04.2010. 5000/-, in multiple of Rs. 1000/-] & reverse sweep in
available age Rs.1 Lac multiple of Rs.5000/- liberty to fix higher amount than
for NRE Threshold limit is Rs.5000/-, in multiple of 5000/-
deposits Rs.10,000/- 2. Tenure of the SDR will be 180 days.
[minimum] 3. Free collection of outstation chqs but postage charges
will be recovered, Free Debit Card, Free Cheque Book
Circular reference facility, Free Standing Instruction & welcome Kit.
BCC:BR:99:221 4. Immediate credit of outstation chqs upto Rs.25000/
Dated 16th 5.Account pre-closer charges (<12 M)
Jul’2007 @ Rs. 300+ST
6.Non maintenance of minimum balance, service charges
@ Rs.100/- pm +ST

Products Who can open A/c Minimum & Maximum Rate Remarks/USPs
average balance/Deposit of
Intt
Baroda Individuals above 14 yrs of QAB: 1. Free internet Banking / Free on line
Advantage age, Traders, Trust, No payment of Excise duty & Service Tax.
Current A\c Businessman, Corporate, Area Individual Intt. 2. No restriction on number of
HUF, Proprietorship/ /Others withdrawals.
partnership firm, R/SU 2000 3. Facility for collection of 3rd party
Private/Public ltd cos., Club, Urban/M 10000 cheques also.
Societies, banks & etro 4. First time free Cheque book of 50
association, Societies. leaves.
Min balance charges- 5. Standing instruction facility available.
Rs.500/-Qrtly. 6. 50% concession in retail loan
+S.Tax processing charges.
7. Free opening of Demat account for 1
Max- No limit, except for year.
Minor of 14 to 18 yrs age 8. Salary uploads facility to Corporates
Rs.1 Lac customers.
9. Closure within 1 year subj. to recover
NO INTEREST PAYBLE. Rs.100/+S.Tax
10. Immediate Credit of Outstation
Cheques ( Up to ` 20000/-)
11. No Folio charges for accounts with
average credit balance of more than Rs
50,000/-
Min & Max average 1. Roaming Account Facility.

Baroda Individuals (Not Balance/Deposit: 2. Free internet Banking, on line payment of Excise
Premium Minors), Traders, QAB: Rs. 75000/- duty & Service Tax, Bank Statement by E-mail, Free
Current A\c Trust, personal accidental insurance with credit card , Free
Businessman, Min balance charges- Credit Card ( For First Year ) Maximum to 2 Partners or
Corporate, HUF, Rs.600/-Qrtly.+Ser.Tax 2 Directors, Balance Certificate, Signature verification,
Proprietorship/ Max- No limit, Auto payroll & Unlimited no. of cheque leaves.
partnership firm, 3.50% concession in remittances & collection of out
Private/Public ltd * NO INTEREST station cheques. Waiver in case Car Loans are in the
cos., Club, PAYBLE. name of Proprietor, Firm and Company, Also NIL folio
Association, No Intt. charges.
Societies. Max.- No limit , except 4. Auto/Reverse Sweep facility, in multiple of Rs.25000
for Minor of 14 to 18 yrs in excess of minimum balance for 15-45 days. If the
age Rs.1 Lac customer desires, Branch can increase Sweep Out
amount of Rs. 25000/- in the multiples of Rs. 25000/-.
Ref: BCC:BR:108:496 The Threshold Limit for sweep facility is increased from
Dated 20th October Rs. 75000/- to Rs. 500000/-.
2016 5. 25 % of annual custody charges to partners,
directors, and proprietor and up to two authorized
managing members of
other bodies.
6. Immediate credit of out station cheques o/s max
Rs.50000/- at any time.
7. 20% on locker Rent if locker rent is paid in advance
for three years and above in lump sum.
Rs.600/+S.Tax

Baroda Individuals(Not Min & Max average No Intt. 1. Roaming Account Facility.
Premium minor), Traders, Balance/Deposit: 2. Free remittances & collection of out station cheques,
Current A\c Trust, HUF, QAB: Rs. 2,50.000/- internet Banking, on line payment of Excise duty &
Privilege Businessman, Service Tax, Bank Statement by E-mail, Free personal
Corporate, Min balance charges- accidental insurance with credit card, Free Credit Card
Proprietorship/ Rs.1000/-Qrtly.+Ser.Tax (For First Year) Maximum to 2 Partners or 2 Directors,
partnership firm, Balance Certificate, Signature verification, Auto payroll
Private /Public & Unlimited no. of cheque leaves. Waiver in case Car
ltd cos., Club, * NO INTEREST Loans are in the name of Proprietor, Firm and
Association, PAYBLE. Company, Also NO folio charges.
Societies. 3. Auto/Reverse Sweep facility, in multiple of Rs.25000
Max- No limit. in excess of minimum balance for 15-91 days. If the
customer desires, Branch can increase Sweep Out
Ref: BCC:BR:108:496 amount of Rs. 25000/-, in the multiples of Rs. 25000/-.
Dated 20th October The Threshold Limit for sweep facility is increased from
2016 Rs. 250000/- to Rs. 500000/-.
4. 25 % of annual custody charges to partners,

directors, and proprietor and up to two authorized
managing members of
other bodies.
5. Immediate credit of out station cheques o/s max
Rs.150000/- at any time.
Rs.1000/+S.Tax.
Baroda Small Individuals, Min average 1. Exclusive product for traders and merchants,
Business Proprietorship Balance/Deposit: running small businesses.
Current A\c and partnership QAB: Rs. 2,500/- 2. Annual turnover in the a/c limited to Rs.20 lacs.
(Only Metro & concerns 3. No Transaction charges for all ADC transactions.
Urban Br) * NO INTEREST 4. 5 Non-ADC transactions free per month.
PAYBLE. 5. Transaction charges Rs. 10/- + S Tax per
transaction, over & above 5 transactions; for
Min balance charges- turnover upto Rs. 20.00 lacs.
Rs.300/-Qrtly.+Ser.Tax 6. Transaction charges Rs. 15/- + S Tax per
transaction, over & above 5 transactions; after
breach of turnover ceiling of Rs. 20 lacs.
Ref: BCC:BR:108:563 7. All transactions including ADC transactions are
Dated 24th November subject to Ledger Folio charges.
2016 8. First chequebook of 50 leaves free. Threafter,
charges of Rs. 5/- per leaf.

Baroda Short Individuals Minimum Amount :- * 1 Minimum – 7 Days (period of 7 days to 14 days -
Term Deposit including minor 1000/- and in multiples applicable for deposits of Rs. 15 lacs and above)
A/c (>10yrs age), of `100/- Maximum – Less than 12 Months
Traders, Trust,
Businessman, 2. A regular income with the Corpus keeping intact.
Corporate, HUF, 3. Prepayment of deposit allowed with 1%lower ROI
Proprietorship/ applicable for the period deposit has run. No intt if
partnership firm, period is less than 7 days. But no penal if amount
Private/Public ltd reinvested for the period longer than residual period of
cos., Club, deposit.
Societies banks 4. OD/ Loan facility upto 95% of book value & ROI
& association, 1.00%+ intt rate on Deposit.
Societies.
Baroda Same as Min- Rs1000/- and in * 1. Period 12 months to 120 months.

Regular Baroda Short- multiples of Rs100/- 2. Prepayment of deposit allowed with 1%lower ROI
Income Plan term deposit applicable for the period deposit has run. No intt if
(MIP & QIP) a/c period is less than 7 days. But no penal if amount
reinvested for the period longer than residual period of
deposit or TD has run for Min. 1yr & < Rs.5Lac.
3. OD/ Loan facility upto 95% of book value & ROI
1.0%+intt rate on Deposit.
4. Monthly / quarterly interest payment to depositor.
Baroda Fixed Same as Min- Rs1000/- & In * 1. Period 12 months to 120 months.
Deposit Baroda Short- multiples of Rs100- 2. Prepayment of deposit allowed with 1%lower ROI
Account RIRD term deposit applicable for the period deposit has run. No intt if
a/c period is less than 14 days. But no penal if amount
reinvested for the period longer than residual period of
deposit or TD has run for Min. 1yr & < Rs.5Lac.
3. OD/ Loan facility upto 95% of book value & ROI 1.
0%+intt rate on Deposit.
4. Quarterly compounding of interest.
1. For long term investment of Funds & High returns.

Baroda Tax Individuals Min- Rs100/- & In * 2. Period not less than 5 years and Maximum not
Saving Term Singly and/or multiples of Rs100/- exceed 10 years.
Deposit jointly & HUFs and 3. Premature withdrawal of the deposits made under
Scheme Maximum Rs.1.50 Lac the scheme shall not be allowed before completion of 5
Income tax years except in case of death of the depositor.
relief will be No loan or any credit
available only facility against security of 4. No loan or any credit facility against security of the
to the first the deposit deposit
holder of the
deposit 5. Exemption in Income tax under s-80c of IT act upto
Rs.1.50 lac.
6. Deposit can be under RIRD/MIP/QIP scheme
7. Firms, Cos. Trusts, Societies, Clubs, Institutions,
Corporates are not eligible to invest.
8. Staff can get only one benefit of rate of interest,
either 1% for staff or 0.50% for senior citizen.

Baroda Fast In built Min. 10000/- in multiples * 1. A current account of the depositor is opened
Access Overdraft of 1000/- simultaneously and overdraft limit up to 95% of
Scheme facility deposit receipt is provided.
2. ROI on overdraft will be 1.00% over the deposit
rate.
3. Fixed deposit receipt duly discharged by the
depositor will be kept as security.
4. Minimum period: 12 months and Maximum period:
120 months
Baroda Flexi High Net worth, Min- Rs 5 Crore * 1. Period 7 days to 1 Year.
Deposit High value & in multiples of 2. Withdrawal of deposit without any restriction on
Scheme Customers Rs.1 crore. amount & without any penalty with 1 (one) business
having short Max. No Ceiling day notice provided balance amount Min.Rs.1 Crore.
term liquidity (Bulk Deposit) 3. Minimum eligible period for interest 7 days & intt
shall be payable at the rate applicable for the period,
on the date of deposit.
4. For Medium term investment of Funds & Higher
returns.
Baroda flexi Facility of Min. 5000/- (Units of * 1. Period Min. 12 months, Maximum 120 months
fixed Deposit withdrawal of 1000/- each) and in 2. 0.50% additional interest to senior citizens
Scheme part amount multiples of Rs.1000/- 3. Nomination, Prepayment, Loan facility available as
in case of other schemes.
Baroda 1111 days Min- Rs1000/- & In * Rate of Interest : 8.50 % per annum
Mahautsav multiples of Rs100 8.50% Period of Deposit : 1111 days
Deposit
Scheme
Baroda DoubleThis is a Term Rs 5,000/- ( and further 8.86 8.25% per annum for Residents & Non- Residents
Dhamaka Deposit Product in multiple of Rs. 1000/-) 8.75% per annum for Senior Citizens
Fixed Depositwherein Less than Rs. 1.00 Crore 9.25% per annum for Staff members & Ex staff
scheme Depositor gets members
more than On Due date Rs. 1000/- 9.75% per annum for Ex Staff who are Senior Citizens
double of his shall accumulate into 8 Years and 05 and 25 days Months for Residents &
initial deposit approximately. Rs. Non- Residents
amount, after a 2001/- 8 Years and 5 Days for Senior Citizen
period of 8
years and 05
months and 25
Days
Baroda Double Dhamaka Fixed Deposit scheme for NRIs is since withdrawn by the Bank w.e.f. 19.11.2016.
(Ref: BCC:BR:108/ 548, dtd. 19.11.2016)

*
Baroda Individuals including Min- Rs 50/M for 1. Min. 6 monthly installments or in multiples of 3
Recurring minor, Traders, Trust, Rural &S.U. months Max. 120 months.
Deposit Businessman, Corporate, Rs.100/M for
Scheme HUF, Proprietorship/ Urban & Metro & 2. Prepayment of deposit allowed with 1%lower ROI
(RD) partnership firm, CBS In multiples applicable for the period deposit has run. But no penal
Private/Public ltd cos., of Rs.50/- if amount reinvested for the period longer than
Club, association, residual period of deposit.
Societies.
Premature 3. OD/ Loan facility up to 95% of book value & ROI
Closure of 1.0%+intt rate on Deposit. Loan amt. Min. Rs500 at
account within R/SU & Rs.1000 at U/M.
One Year – `
100/- + Service 4. As per the maturity period of the deposit
Tax Interest will be Compounded Quarterly & Paid on
maturity
Baroda An individual in his own .Minimum * Deposit Tenure:

Samridihi name. amount required Minimum 36 Months and Maximum 120 Months. i.e.
Quarterly RD More than one individual to open an Term of RD can be for
in joint name. account - Rs. 36,39,42,45,48,51,54…………120 months.
Minor of age 10 and 500/-
The product is above on terms laid down Subsequent Regularises savings by encouraging a saving habit.
not available by the bank. Clubs, deposits in Loan/Overdraft facility up to 95% of the deposit
for NRE associations, Educational multiples of - Rs. amount.
deposits. Institutions, Partnerships 100/- Provision for nomination Maximum - 120 months.
and joint stock
companies, provided they
are registered and bank is
satisfied that the account
is opened for genuine
savings purpose
Baroda An individual in his own .Minimum * Deposit Tenure:

Samridhi name. amount required Minimum 36 Months and Maximum 120 Months i.e.
Halfyearly RD More than one individual to open an Term of RD can be for
in joint name. account - Rs. 36,42,48,54,60,66,72…………120 months
Minor of age 10 and 1000/-
above on terms laid down Subsequent Regularises savings by encouraging a saving habit.
The product is by the bank. Clubs, deposits in Loan/Overdraft facility up to 95% of the deposit
not available associations, Educational multiples of - Rs. amount.
for NRE Institutions, Partnerships 100/- Provision for nomination
deposits. and joint stock Maximum - 120 months.
companies, provided they
are registered and bank is
satisfied that the account
is opened for genuine
savings purpose

Baroda Individuals including Min- * 1. Min. 12 monthly installments or in multiples of 3
Flexible minor, Traders, Trust, Rs100/month, & months Max. 120 months.
Recurring Businessman, Corporate, in multiples of
Deposit HUF, Proprietorship/ Rs.100/-. 2. Prepayment of deposit allowed with 1%lower ROI
Scheme partnership firm, applicable for the period deposit has run. But no penal
(YSJY) Private/Public ltd cos., Installment can if amount reinvested for the period longer than
Club, association, be increased residual period of deposit.
Societies. upto 3 times
core installment 3. OD/ Loan facility up to 95% of book value & ROI
amount. 1.00%+intt rate on Deposit
Max. Rs.10000/M
Min. Loan Rs 500/- at R/SU & Rs.1000/- at U/M.
4. Interest will be paid on half yearly basis.
Domestic Term Deposits for Senior Citizens:

1. Additional interest of 0.50% on domestic term deposits of less than Rs.1 crore from Senior Citizens for
all maturities in terms of latest circular (No. BCC: BR: 98/225 dated August 17, 2006)
2. Retired Staff members who are Senior Citizens resident in India, branches are authorized to pay
additional interest of 1.50% per annum (i.e. 1% a normal staff privilege plus 0.50% as a benefit to
Senior Citizen) on their fresh term deposits and renewals of existing Term Deposits of less than Rs.1
crore for maturities from 15 days to 10 years. (No. BCC: BR: 100/4 dated 1st January’2008).
List of standard abbreviations used in the bank
ALCO Asset Liability Management Committee

ALM Asset Liability Management
ATM Automated Teller Machine
BG Bank Guarantee
BKCC Baroda Kisan Credit Card
BPLR Bench Prime lending Rate
BSR Basic Statistical Return
CA Current Account
CAR Capital Adequacy Ratio
CC( Book debts) Cash Credit Against hypothecation of book debts
CC( stock) Cash Credit against hypothecation of stock
CD Certificate of Deposit( akin to time deposit in Indian context)
CGFTS (for SSI) Credit Guarantee Fund Trust Scheme
CHAPS Clearing House Automated Payment System (in London)
CHIPS Clearing House Inter-bank Payment system( in New York)
CFMS Centralised Fund Management System
CP Commercial Paper
CRR Cash Reserve Ratio
DD Demand Draft
DICGC Deposit Insurance & Credit Guarantee Corporation of India
DL Demand Loan
DP Delivery against Payment
DPG Deferred Payment Guarantee
DPN Demand Promissory Note
DRDA District Rural Development Agency
DRDP District Rural Development Programme
DRI Differential Rate of Interest
DRT Debt Recovery Tribunal
DSCR Debt Service Coverage ratio
ECB External Commercial Borrowing
ECGC Export Credit & Guarantee Corporation of India
ECS Electronic Clearing System
EFT Electronic Funds Transfer
EOU Export Oriented Units
EPZ Export Promotion Zone
FBP Foreign Bills Purchase
FEMA Foreign Exchange Management Act
FCNR A/c Foreign Currency Non-resident Account
FDR Fixed deposit receipt
FIBC Foreign Inward Bill for collection
FIRPS Foreign Inward Remittance Payment Scheme
FOBC Foreign Outward Bill for Collection
FRCD Floating rate Certificate of Deposit ( in Euro Currency)
FRSCC Fire, Riot, Strike & Civil Commotion( Insurance cover)
HODD A/c Head Office Demand Draft A/c
IAS Integrated Accounting System
IBC Inward Bill for Collection ( Inland bill)
IBTA Inter Branch Transaction A/c
KYC Know Your Customer
LABOD Loan Against Bank’s Own Deposits
LIBOR London Inter Bank Offered Rate
MIP Monthly Income Plan
MIBOR Mumbai Inter bank Offered Rate
MPBF Maximum Permissible Bank Finance
MT Mail Transfer
MTR Motor Transport Receipt
NDS-PDO Negotiated Dealing System-Public Debt Office
NDTL Net Demand and Time Liabilities
NPA Non Performing Asset
NRE A/c Non Resident External A/c
NRI Non Resident Indian
NRO Non Resident ordinary A/c
OBC Outward Bill for Collection ( Inland bill)
OBR Over Bank Rate ( for Indian Business)
Over Base Rate ( for Overseas Business)
OLTAS On Line Tax Accounting System
PAN Permanent Account Number

PBF Permissible Bank Finance
PLR Prime Lending Rate
PMRY Prime Minister Rozgar Yojana
PSBL Post Business Demand Loan
RD Recurring Deposit
REPOS Repurchase Obligation
RFC Resident Foreign Currency a/c
RIP Regular Income Plan
RIRD Regular Income- cum- Recurring Deposit
ROA Return on Assets
ROR Rate of Return
RTGS Real Time Gross Settlement
SAP Standard Auditing Practices
SB Savings Bank
SDR Short Deposit Receipt
SFMS Structured Financial Messaging System
SI Standing Instruction
SLR Statutory Liquidity Ratio
SPNS Shared Payment Network System
SPV Special Purpose Vehicles
SSS Securities Settlement System
SWIFT Society for Worldwide Inter-bank Financial Telecommunications
TBM Total Branch Mechanisation
TDS Tax Deducted at Source
TL Term Loan
TOD Temporary Overdraft
TT Telegraphic Transfer
UCPDC Uniform Customs & Practices in Documentary Credit
UFBP Usance Foreign Bill Purchase
VaR Value at Risk
WCTL Working Capital Term Loan
WDV Written Down Value

RETAIL BANKING & THIRD PARTY PRODUCTS
Retail Banking: Retail banking is characterized by three ‘M’,

 Multiple products,
 Multiple delivery channel and
 Multiple customer groups.
Basically, there are three important segments of Retail banking

 Deposits products,
 Loan products, and
 Other service products
Why Retail? Growing competition & diminishing margins in corporate financing. Potential area for fund
deployment.
Corporate objective: To increase outstanding Retail credit by 50% .Branches to generate maximum leads and
forward to RLF
Capital Gain Account Scheme, 1988:
1. The exemption provided under the section pertain to long term capital gain arising on sale of residential
property and investment of such gains in another residential property. As per law this investment must
be made within 2 years for purchase & and three years for construction.
2. In case, after the sale of property, a person is not able to find property of his choice, the amount of
capital gain shall be kept under this scheme till investment.
3. Two types of accounts can be opened under this scheme:
(a) Deposit A- deposits made under this account would be in the form of savings bank deposits and
(b) Deposit B- deposits made under this account would be in the form of term deposits, with an option
to retain the deposit as cumulative or non-cumulative. Deposits may be made as a single lump sum
amount or in instalments at any time on or before furnishing the return on income
4. Withdrawals under savings can be made from time to time. A declaration in form C giving details of
purpose is required. Form D shall also be required.
5. Helps to avail of tax exemptions from capital gains, tax exemption available under section 54(f)(4) of
the Income Tax Act.
6. Nomination facility available.
Baroda Health" (Medi-claim Insurance Policy)”
1. This is in collaboration with National Insurance Co Ltd. for Bank’s Account holders w.e.f 23rd February
2006.
2. It is a co-branded product to provide value added services to our customers and available at all our
branches across the country.

3. It is a Group Medical Insurance Scheme, takes care of the hospitalisation expenses upto the amount of
sum insured. This policy is available only to account holders of our Bank.
4. Insurance coverage i.e. sum assured may range from Rs 50.000/ to Rs 5.00 lacs per family of 1+3,
consisting of policyholder, spouse and 2 dependent children up to the amount insured.
5. A member or all the members in insured family can avail hospitalisation benefits during the policy
period, to the extent of aggregate sum not exceeding the sum insured.
6. It provide covers in respect of any illness / disease, accidental injury and/ or any ailment., any surgery
that is required in respect of any disease or accident that has occurred during the policy period, Pre-
existing diseases covered after three consecutive continuous claims free policy years in respect of all
diseases provided there was no hospitalisation for pre-existing ailments during such three years of
insurance
7. Policyholders are eligible for Income Tax exemption under section 80 D as per Income Tax Rules.
8. Cost of Health check up is allowed @ 1% of sum insured after completion of 3rd year continuous claim
free years of Policy. (BCC:BR:108:243 Dated 27.05.2016 -Revised premiuim Rates )
(BCC: BR:108:231 Dated 20.05.2016 ---Standalone Health Insurance - Corporate Agency tie up with Max Bupa
Health Insurance Company Limited and Star Health and Allied Insurance Company Limited)
UTI Mutual Fund (UTI) MF:
1. On 1st March, 2006 MoU signed between our Bank and UTI Asset Management Co. for selling of UTI-
MF products through our 100 identified branches across the country in first phase.
2. Centres selected are such where UTI-MF is also having its office
3. Our Bank has since obtained AMFI registration no. 35783 which is to be incorporated on all the
application forms.
4. The selling of UTI Mutual Fund is yet another stream whereby more than 26 millions of BoB customers
will get an opportunity to invest in various schemes of UTI Mutual Fund closer to their doorsteps in the
branches where they do their business transactions.
Birla Sun Life Mutual Fund:
1. Birla Sun Life Mutual Fund tied up with us for distributing its MF Products.
2. For distribution of Birla MF's products, the Bank has identified 100 branches across the country, to start
with. This will be extended to many more branches in due course.
3. Under the Agreement, Bank of Baroda will offer the entire Birla MF's products across the Bank's
selected branches.
4. In its drive towards providing greater customer convenience, the Bank will continue to enlarge its
basket of products - both its own as also third party, leveraging its vast branch infrastructure."
Baroda Pensioner Saving Bank A/c:

1. Pensioners & BOB staff pensioners are also eligible
2. A/c opening by Min- Rs.5/-, Min. Balance Rs. 3000/- on daily basis, if not Min, balance charge Rs. 100
+ ST per quarter

3. Auto sweep beyond Rs.3000 to Short deposit of 180 days in multiples of Rs. 1000, Reverse sweep in
multiples of Rs.1000/- on LIFO pattern.
4. Free transfer of funds through DD/BC up to max. of Rs. 1.00 lac per month.
5. Free coll. of outstation cheques/ DD.
6. Immediate credit of outstaion cheques upto Rs.25000-as per bank norms.
7. Overdraft facility in SB a/c upto a maximum of -2- months pension amount
8. Free BOBCARD Silver( credit card) for 1st year with accidental death insurance cover of Rs 1.00 lac
provided by BOBCARDS Ltd under credit card scheme .
Baroda First Wealth Pack: This product has since been discontinued by the Bank. (Ref: Circular
No. BCC:BR:107/369, dated 01.08.2015)
Baroda Jeevan Suraksha:

1. Min. Rs. 1000/-, Min. balance Rs. 1000 on daily basis. Minimum balance charges
2. Rs.100+ST per quarter
3. Admini. Charge @10% of prem. amt collected shall be reimbursed by IFLI to our bank.
4. Life Insurance cover from India First Life Insurance co. Ltd. Up to an amount of Rs.5 lac (Min. Rs.1 lac
& thereafter in multiples of 1 lac) on payment of premium at cost of customer.
5. Auto sweep over Rs.5000 in multiples of Rs.5000, reverse sweep in multiples of Rs.1000/- on LIFO
pattern.
6. Free Debit card/internet banking & BOBCard Silver for first year with accident insurance cover of Rs.1
lac (BOBCD ltd)
7. Immediate credit of outstation cheques up to Rs.15000/-
8. Free SI
9. Consent cum autho.lter
Baroda Samraddhi HYearly / Quarterly Recurring Deposit Scheme:
1. Individuals as well as Non Individuals are eligible for opening of Account.

2. Bank’s Normal Term Deposit interest rates are applicable
3. Depositor will have to choose Installment Amount, Installment frequency (Quarterly or Half Yearly) and
No. of Installments to be deposited (Tenure of Account) .
4. Quarterly Recurring Deposit can be opened with minimum Rs500/- (further in multiple of Rs 100) and
Half Yearly Recurring Deposit scheme with minimum amount of Rs 1000 (further in multiple of Rs 100).
5. Minimum tenure of the account shall be 36 months and maximum 120 months.
6. NO TDS shall be deducted on Interest payments
7. Loan/ Overdraft facility upto 95% of outstanding credit balance at
8. Interest rate 1.00% over deposit rate shall be available.
9. Penal Interest, Premature Payment and other norms as per usual
10. Monthly Recurring Deposits scheme shall be applicable.

OVERVIEW OF ADVANCES: CREDIT FACILITIES
Credit facilities extended by bank can be classified into two categories viz. fund based and non-fund based.
However, there are certain types of advances which do not involve deployment of funds at least at the initial
stage though in contingencies funds are also involved. These are called non-fund based advances.
BANK FACILITY
FUND BASED NON FUND BASED
LOANS GUARANTEES LETTER OF CREDIT
OVERDRAFT CASH CREDIT BILL FINANCE EXPORT FINANCE
BILLS PURCHASED BILLS DISC./NEGOTIATED
PRE-SHIPMENT POST-SHIPMENT
CREDIT CREDIT
Fund Based Facilities:

When bank places certain funds at the disposal of borrowers and borrowers avail these funds, such
types of credit facilities are known as fund based.
LOAN:
The loan is disbursed by way of single debit/stage-wise debits (wherever sanction so accorded) to the
account. The amount may be allowed to be repaid in lump sum or in suitable installments, as per terms
of sanction. Loan is categorized Demand Loan if the repayment period of the loan is less than three
years, in case the repayment of the loan is three years and above the loan be considered as Term
Loan.
OVERDRAFT:
When a customer is maintaining a current account, a facility is allowed by the bank to draw more than
the credit balance in the account; such facility is called an 'overdraft' facility. At the request and
requirement of customers temporary overdrafts are also allowed. However, against certain securities,
regular overdraft limits are sanctioned.
Salient features of this type of account are as under
All rules applicable to current account are applicable to overdraft accounts mutatis mutandis.

Overdraft is a running account and hence debits and credits are freely allowed.
Interest is applied on daily product basis and debited to the account on monthly basis. In case of
temporary overdraft, interest should be applied as and when temporary overdraft is adjusted or at the
end of the month, whichever is earlier.
Overdrafts are generally granted against the security of government securities, shares & debentures,
National Savings Certificates, LIC policies and bank's own deposits etc. and also on unsecured basis.
CASH CREDIT:
A cash-credit is an arrangement to extend short term working capital facility under which the bank
establishes a credit limit and allows the customers to borrow money upto a certain limit. Under the
system, bank sanctions a limit called the cash-credit limit to each borrower upto which he is allowed to
borrow against the security of stipulated tangible assets i.e. stocks, book debts etc.
The customer need not draw at once the whole of the credit limit sanctioned but can withdraw from his
cash-credit account as and when he needs the funds and deposit the surplus cash/funds proceeds of
sale etc., into the account. Besides this, the facility of frequent and unrestricted transactions is
available.
NON-FUND BASED FACILITIES:
The credit facilities given by the banks where actual bank funds are not involved are termed as 'non-fund
based facilities'. These facilities are divided in three broad categories as under:
Letters of credit
Guarantees:
Units for the above facilities are also simultaneously sanctioned by banks while sanctioning other fund based
credit limits.
Types of Guarantees:
Though as per law Bank guarantees have not been classified, by the nature of the underlying contract entered
into by the customer, in practice such classification has been made. There are various types of guarantees the
important ones which a banker would be regularly required to issue are as follows: -
 Financial Guarantee
 Performance Guarantee
 Deferred Payment Guarantee
Financial guarantees:
In case of financial guarantees, the bank guarantees the customer's financial worth, credit worthiness
and his capacity to take up financial risks.
Therefore, guarantees issued in respect of constituents liability, such as guarantees favouring tax/
customs/excise/court authorities in respect of disputed claims, payment of taxes, customs and excise
etc. will come under the classification of financial guarantees. While issuing such guarantees the
branches should be satisfied about the financial strength/liquidity of the party.

Performance guarantees:
Performance guarantees are issued on behalf of constituents guaranteeing their performance as per
the contracts entered into, performance of machineries supplied, due discharge of other contractual
obligations undertaken etc.
In such guarantees, Bank does not undertake to perform the obligations undertaken by the customer
under the contract, in the event of his failure/default as they may be of a highly technical nature.
Guarantees covering security deposit/earnest money/bid bond /advance payment/ mobilisation
advance etc. would come under this category. Similarly, guarantees covering payment for supplies to
be lifted by parties will also be treated as performance guarantees.
Deferred Payment Guarantees:
Deferred payment guarantee, which is a financial guarantee, is a way of raising long term resources for
acquiring fixed assets/capital goods by securing guarantee of repayment of principal and interest from
his banker to the supplier of capital goods for supplier’s credit. This also helps the supplier to improve
his cash flow by discounting these bills from his bankers.
LETTER OF CREDIT:
Letter of Credit is a method of settlement of payment of a trade transaction and is widely used to
finance purchase of machinery and raw material etc. It contains a written undertaking given by the
bank on behalf of the purchaser to the seller to make payment of a stated amount on presentation of
stipulated documents and fulfilment of all the terms and conditions incorporated therein.
All Letters of Credit in India relating to the foreign trade i.e., export and import letters of credit are
subject to provisions of 'Uniform Customs & Practice for Documentary Credits' (UCPDC).
Types of Letters of Credit:
There are different types of letters of credits in vogue which offer a degree of' convenience in operations. Brief
details of these credits are given below:
Inland L/C An L/C where all the parties to an L/C are located within the country.
Foreign L/C An L/C where either the opener or the beneficiary is located outside the country of
issue and arising out of export or import of goods/services out of/into the country
of issue.
Revocable * A credit that can be cancelled or amended at any time without the prior knowledge
of the beneficiary.
Irrevocable It is a definite undertaking of the issuing bank to honour documents strictly drawn
as per terms and conditions of credit which cannot be amended or cancelled
without the agreement of all the parties to the credit, in particular the beneficiary.
Confirmed Where credits carry the confirmation of the advising bank. It constitutes a definite
undertaking of such confirming bank in addition to that of the opening bank.

Transferable A transferable credit is a credit under which the beneficiary (first beneficiary) may
request the bank authorised to pay, incur a deferred payment undertaking, accept
or negotiate (the "Transferring Bank"), or in the case of a freely negotiable credit,
the bank specifically authorised in the credit as transferring bank, to make the
credit available in whole or in part to beneficiary (ies) second
beneficiary/beneficiaries.
Revolving Which provide that the amount of drawings made there under would be reinstated
and made available to the beneficiary again and again for further drawings during
the currency of credit, upto a certain sum subject to certain conditions specified
therein.
Back to Back Many suppliers accept orders to supply/export goods from different importers. In
their turn, procure the goods from different manufactures. The supplier may have
letter of credits established in their favour are not transferable or issued in
different currency. In such cases these supplier which act as middlemen between
actual suppliers and importers, may request their banks to issue LCs already
established in favour of former. These LCs are known as back to back letter of
credit.

RETAIL LENDING PRODUCTS
AT A GLANCE
Retail Lending:
Bank of Baroda offers a wide range of retail loans to meet diverse needs of customers whether the need is
for a new house, child's education, purchase of a new car or home appliances, and our unique and need
specific loans enable to convert their dreams to realities.
Retail Products:
Our Bank has installed a wide range of retail products as under;
 Baroda Home Loan
 Baroda Auto Loan
 Baroda Education Loan
 Baroda Mortgage Loan
 Baroda Traders Loan
 Baroda Loan to Doctors.
 Baroda Personal Loan.
 Baroda Ashray Loan(Reverse Mortgage Loan)
 Loan against Future Rent Receivables.
 Baroda Loan against securities.
BARODA HOME LOAN:

As we are aware that our Bank was having different products related to Home Loan sector. These Loan:
Schemes vide Bank’s Circular no.BCC:BR:108:430 dated 1ST Oct 2016 have been realigned for operational
convenience under the name “BARODA HOME LOAN” as below:
a) Baroda Home Loon (Residenl Indion/NRls/POI/OCBs)
b) Baroda Home Advontoge loan
c) Borodq CRE Home Loan
d) Borodo Pre opproved Home Loan
e) Borodo Home lmprovement loan.
f) Baroda Additionol Assured Advance (AAA).
g) Golden Jubilee Rural Housing Finance Scheme (GJRHF)
h) Pradhan Mantri Avas Yojana (PMAY)
Baroda Home Loan (Residenl Indion/NRls/POI/OCBs):

PURPOSE:
 Construction of new dwelling units / flat
 Purchase of old houses, generally not more than 25 years old (based on structural soundness and
residual life of the house).
 Repayment of loan availed from other banks / institutions.
 Purchase of plot to construct a house within a period of 3 years from the date of purchase.
 Houses/Flats purchased or constructed from own sources (period not exceeding 2years)
 Reimbursement of expenses incurred for houses / flats constructed / purchased recently from own
sources to subject to rating of HL-1,HL- 2,HL-3& house must be purchased/constructed recently (not
prior to 24 months).

ELIGIBILITY:
 Individual in single OR joint names
 Principal applicant who is resident Indian must be employed minimum for last one year.
 HUFs are not eligible for loan.
 NRI/PIO/OCBS applicant/ co-applicant/s (whose income are considered for eligibility) should be
having a regular job abroad in a reputed Indian / foreign company, organization or government
department holding a valid job contract / work permit for the minimum past -2- years.
OR Should be employed / self-employed or having a business unit and staying abroad at least for -
2- years. b) Applicant / co-applicant/s (whose income is considered for eligibility)
 Should have minimum gross annual income equivalent to Rs.5.00 Lacs per annum. [If the applicant
/ co applicant/s, whose income is considering for eligibility includes NRI, minimum Gross Annual
Income of Rs.5 Lacs (income of applicant / co-applicant together) can be considered for this
criteria.
AGE:
1. 1.Principal Borrower 21 years & Co borrower may be of 18 years.
2. Age of the borrower plus repayment period should not exceed 70 years provided;
3. Son/Daughter /Spouse who is a legal heir and preferably below 50 years of age, with sufficient income
for servicing the loan repayment join as Co-Borrower/Guarantor.
Or
4. If borrower pledges FDRs / NSCs / Govt. Security etc. of adequate value to ensure continuity of
income for repayment of loan installment with interest if sanctioning authority is satisfied about
the same.
LIMIT / AMOUNT OF LOAN:

1. Mumbai : Rs. 10 Crores
2. Other Metros * : Rs. 5 Crores
3. Urban Areas : Rs. 3 Crores
4. Semi-urban and Rural : Rs. 1 Crore
The above limits will be based on the area where property is proposed to be constructed/ purchased,
irrespective of the classification of the financing branch.
List of *other Metro Cities (as per census 2011 and RBI classification of population above 10 Lacs.)
For salried persons :
Gross Monthly Income (GMI) Eligible Amount of Loan

less than Rs. 50,000 48 times of GMI Gross Monthly Income (GMI)
Rs.50,000 and above but less than 54 times of GMI Gross Monthly Income (GMI)
Rs.1 Lac
Rs. 1 Lac and above 60 times of GMI
▪ Others (Self-employed/professionals/agriculturists & NRIs etc.):

Gross Annual Income (GAI) less than Rs.2.00 Lacs 4 times of GAI
Gross Annual Income (GAI) Rs.2.00 lacs & above 6 times of GAI
Wherever income of the family members is clubbed, they should be made co-borrowers.

In case of Agriculturists who are predominantly dependent on agriculture and not required to file income tax
returns, their income may be assessed by obtaining income certificate from the local competent revenue
authority only.
The income mentioned in the certificate must be assessed properly taking in to consideration land holding of
the Agriculturist, area of land actually being cultivated by him, cropping pattern and acreage under different
crops together with number of crops harvested in a year depending on availability of irrigation facility etc. The
assessment of income so arrived must be properly recorded with justification in the appraisal note.
Payment of all type of Life Insurance Premia (except premia of Unit Linked Insurance Plan -ULIP) irrespective
of Insurance Company issuing the policy need not be considered for Deduction.
For persons other than Salaried, Depreciation may be added into their income for the purpose of calculation of
loan Limit; subject to average depreciation during the last -3- years or the Depreciation during the current
year whichever is lower and the latest Audited Balance Sheet should not be older then -9- months.
RATE OF INTEREST:
▪ Risk Based Pricing: Applicable rate of interest on Home Loan will be based on CIBIL score of the
applicant/co-applicants, whose income are considered for eligibility as under
CIBIL cut off store Rate of interest

800 and above 1 year MCLR + Strategic Premium
760 to 799 1 year MCLR + Strategic Premium
725 to 759 1 year MCLR + Strategic Premium + 0.50%
675 to 724 1 year MCLR+ Strategic Premium + 1.00%
(-1) or (0) 1 year MCLR + Strategic Premium + 0.50%
For Staff members (irrespective of CIBIL score) 1 year MCLR + Strategic Premium
The rate of interest will be reviewed annually on due date of review of the account. Accordingly, ROI will be
revised based on the CIBIL score of the borrower and the applicable spread over „1 year MCLR + Strategic
Premium‟ in force on due date of review. In case CIBIL score is less than 675, applicable rate of interest will
be with maximum spread as per the product (i.e. 1 year MCLR+ Strategic Premium + 1.00%).
Bureau score validations: ‒ Cutoff on CIBIL score is stipulated at 725.

If more than one applicant is there, AVERAGE of CIBIL scores of the applicants (whose income are considered
for eligibility), to be considered for Cut off score for sanction of Loan as well as for Pricing. In such cases,
CIBIL score of applicant/s having (-1) or (0) to be excluded for average calculation.
However, in such cases of joint applicants, individual CIBIL score of all the applicants (whose scores are
considered for average calculation) should be minimum 675.
Deviations in Bureau Score validations:

1. Deviations in CIBIL score can be considered for existing as well as new customers with proper
justifications which are to be mentioned in the Appraisal Note.
2. Proposals of applicant/s having CIBIL score of (-1) or (0) can be considered by the Sanctioning
authority, without deviations, for existing as well as new customers.
3. Cut off CIBIL score 675 to 724: Deviation decision with RMCC. (if number of applicants whose income
is considered for eligibility is one.) In case of more than one applicant, if average score is 675 to 724
and/or any of the applicant/s score is less than 675: Deviation decision with RMCC.

4. Cut off CIBIL score less than 675: Deviation decision with ZOCC (if number of applicants whose income
is considered for eligibility is one). The applicable ROI will be with maximum spread as per the product.
5. In case of more than one applicant, if average score is less than 675 and/or any of the applicant/s
score is less than 675: Deviation decision with ZOCC. The applicable ROI will be with maximum spread
as per the product.
Note:
a. CIBIL score of applicants having (-1) or (0) to be excluded for average calculation and for deviation.
b. CIBIL score validations are applicable only for applicant/s whose income is considered for eligibility.
c. In case, multiple deviations in CIBIL score are required to be considered at various levels (i.e., one at
RMCC & another at ZOCC), all the deviations in CIBIL score to be considered at higher level.
d. Credit Card default: Cases where credit card account status write-off / settlement involving amount
upto Rs.25,000/- (consolidated amount of default) No deviation is required (in case of fresh, review
with increase & takeover proposals)
Cases where credit card account write-off / settlement involving amount above Rs.25,000/- took place in the
past: Deviation powers rest with the authorities as under:
Parameter Authority
For proposals falling upto the powers of RMCC ZOCC
For proposals falling under the powers of ZOCC COGM (BCC)
While accepting the credit card account write-off / settlement above Rs.5000/- sanctioning authority to ensure
the following:
a) No Due certificate from the Bank / FIs be obtained in respect of credit card
b) account Borrower is impressed upon for updation of „satisfactory status‟ with the
concerned Bank / FIs, preferably within stipulated period.
c) Ensure that „Bureau Report‟ of the applicant/s contains no other adverse remarks.
 All existing Home Loan borrowers who maintain a good track record of repayment are
eligible for a concession of 25 bps in interest rate on prevailing card rate on Car Loans
(including Car Loan to HNIs) w.e.f. 08.06.2010.
 All Home Loan borrowers are eligible for 0.50% concession in rate interest for purchase of
consumer durables under Baroda Personal Loan.
LOAN REPAYMENT PERIOD:

 Up to 30 Years (including moratorium period)
 Moratorium period maximum 36 months (18 months for under construction houses & building upto
7th floor and thereafter 6 months additional moratorium per floor) or
 One month after completion of house/ taking possession of flat/house, whichever is earlier.
 Age of the borrower plus repayment period should not be beyond 70 years maxium subject to
Son/Daughter /Spouse who is a legal heir and preferably below 50 years of age, with sufficient
income for servicing the loan repayment joins as Co-Borrower/Guarantor case of others.

REPAYMENT CAPACITY FOIR(fixed obligation to income ratio):
In case of Salaried Persons:
Gross Monthly Income (GMI) FOIR [Total Deductions, including proposed EMI not
to exceed)
Less than Rs. 20000/- 50%
Rs.20000/ and above but less than Rs.50000/ 60%
Rs.50000/ & above but less than Rs. 2.00lacs 65%
Rs. 2 Lacs and above but less than Rs.5.00lacs 70%
Rs.5.00lacs and above 75%
Others (Self-employed/ Professionals / Agriculturists / NRIs etc.):

Gross Annual Income (GAI) FOIR [Total Deductions, including proposed EMI not to
exceed)
Upto Rs.6 Lacs 70%
More than Rs. 6 Lacs 80%
Note:-Payment of all type of Life Insurance Premia (except premia of Unit Linked Insurance Plan - ULIP)
irrespective of Insurance Company issuing the policy, need not be considered for deduction.
Repayment capacity to be calculated taking into consideration the deduction of income tax, other statutory
deductions etc. besides all reimbursements and other Loans EMI payment, excluding Life Insurance Premia
(except premia of Unit Linked Insurance Plan - ULIP) as stated above.
Adoption of Specific Pre fixed EMI dates for Retail Loans: As per the guidelines conveyed vide Circular
No.BCC:BR:108/404 dated 02.09.2016, Branches have to adopt prefixed specific dates - 08th or 16th or 25th
as EMI dates for all Retail Loans, out of which the preferable date convenient to the borrower, considering the
salary date/ monthly remittance dates etc.
In any case, even in case of loans with moratorium also, the dates - principal demand date/ interest demand
date/ first repayment start date should be uniform for a particular account and should be 08th or 16th or 25th.
The above guidelines are applicable to all the fresh sanctions of Retail Loans w.e.f. 10.09.2016.
MARGIN:
Loan Amount Margin LTV Ratio

Loans up to Rs.30/- Lacs 10% 90%
Loans above Rs.30/- Lacs up to Rs.75/- Lacs 20% 80%
Loans above Rs. 75 lacs 25% 75%
Stamp duty, Registration charges, other documentation charges and other expenses like Life Insurance
premium etc. should NOT be included in the cost of house property to calculate margin / LTV ratio.
However, where cost of the House/ dwelling unit does not exceed Rs.10 Lacs, Branches may add Stamp duty,
Registration and other documentation charges to the cost of the House/ dwelling unit for the purpose of
calculating margin & LTV Ratio.
For NRI borrowers, the margin money should be paid by way of foreign inward remittance through normal
banking channels or out of NRE/FCNR/NRO accounts only.
SECURITIES:
 Equitable Mortgage of plot / house or
 Collateral securities like NSCs, LIC policies, Shares etc.
 Personal guarantees.
 Copy of sanction letter duly acknowledged by the borrower / guarantor is part of the loan documents.
 Duly stamped and registered original agreement to sale executed by builder in favour of borrower.
 Original receipt in respect of registration of “Agreement to sell”.
 Copy of the map of the building duly approved by the appropriate authority
INSPECTION:
Pre sanction inspection is to be carried out as usual. At each stage of disbursement of the loan,
inspection of the dwelling unit must be carried out. After completion of the house, post disbursement
inspection is carried out at least once in 3 years if the account is regular otherwise as per
administrative guidelines.
FREEBEES:
 Silver Card to borrowers with loan limit of above Rs. 2 lacs and up to Rs. 5 lacs.
 Above Rs. 5 lacs & up to Rs. 10 lacs EXCLUSIVE CARD
 Above Rs.10 lacs GOLD CARD
 Free personal accident Insurance.
 property insurance on Baroda Home Loans under ‘Baroda Home Loan Suraksha Bima Yojana’ has been
withdrawn w.e.f. 10.09.2012, but facility of providing free personal accidental insurance will
continue as per revised scheme.
additional assured advance facility:

An additional loan to home loan borrowers for any purpose other than speculative and illegal purpose.
REPAYMENT – EQUATED MONTHLY INSTALMENTS:
At the time of granting loan EMI to be calculated as per chart given in Bank’s publication no. 138-Pages 21 to
30 (Chart No. 3 for lump sum annuity deposits monthly repayment) EMI should be in figures rounded off to
next higher rupee. It can also be calculated through LAMOD command in finacle instantly.
Interest from the date of disbursement to the date of commencement of EMI should be recovered separately
on monthly compounded basis. Monthly recovery under EMI shall be credited in full to the loan account. As
regards application of interest, the same should be calculated on daily products basis,
EMI would undergo modification, if Base Rate is changed. Similarly, if the borrower remits any lump sum in-
between, EMI will require being re-fixed.
Recovery of interest for the pre-EMI period:
a. Interest charged during the pre-EMI period is to be recovered as and when debited, before
commencement of recovery by EMI.
b. For any reason, if the borrower is not in a position to repay the interest as and when charged in one
lump sum, the same may be recovered within 2 months, by charging overdue interest as and where
applicable, as per rules /extant guidelines.

INSURANCE:
Free Personal accident Insurance. Life insurance cover for Natural death is also available to
borrower/Jt. Borrower on payment of appropriate Premium under tie-up arrangement with Kotak
Mahindra (wef 1.1.10) & India First Life Insurance Co (wef 1.9.10).
Premium amt for obtaining cover can be financed as part of home loan at request of borrower &
accordingly EMI is fixed. Free Property Insurance has been withdrawn w.e.f 10.09.2012
(BCC:BR:104:317 dated 10.09.2012)
OTHER ASPECTS:
Normally housing loan is to be considered only for purchase / construction of one house / flat.
However, looking to the size of the family, income eligibility and repayment capacity of the applicant,
housing loan can be considered for purchase of two flats / two houses also provided both the flats /
houses are adjacent or in the same place (city / town / village) and acquired for self occupancy. The
request of a person who already owns a house can also be considered for construction / buying a
second house / flat in the same or other village / town / city for the purpose of self-occupation.
If the car parking place is located in the same building / society / compound, the cost of car parking
can be included in the cost of house / flat for granting housing loan. However, it is to be noted that car
parking area should be identifiable, specific and be clearly mentioned in the sale agreement / allotment
letter.
Person who is provided accommodation by his employer is also eligible for housing loan, even though
he is not in a position to occupy the same in near future and proposes to let it out on rental basis.
In case of individuals who have raised housing loans from other sources and who need supplementary
finance, credit facility may be considered after obtaining pari- passu or second mortgage charge over
the property mortgaged in favour of other lenders and / or against such other security as deemed
appropriate.
PRIORITY SECTOR REPORTING:
 Loans to individuals up to Rs.28.00 lakh in metropolitan centres (with population of ten lakhand above)
and loans up to RS. 20.00 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.35.00 lakh and Rs. 25.00 lakh respectively. The housing loans to banks’ own employees will
be excluded.
 Rs.10.00 lacs per unit to Govt Agency for construction of dwelling units or for slum clearance &
rehabilitation of slum dwellers. Loans sanctioned by banks for housing projects exclusively for the
Purpose of construction of houses only to economically weaker sections And low income groups, the
total cost of which does not exceed Rs.10.00 Lakh per dwelling unit, will qualify for priority sector
status.The Income of such families is kept up to Rs.1.20 lacs irrespective of Location.
 Loans for repairs to the damaged dwelling units of families up to Rs. Rs.2.00 lakh in rural and semi-
urban areas and up to Rs. 5 lakh in urban and metropolitan areas.

Area of operation:
In terms of the revised guidelines, all the branches including at Metro & Urban centers are permitted to
consider housing loan proposals. However, it is clarified that the branch in metro and urban areas may
consider housing loan near to the:
Location of new flat / house to be purchased / constructed or Place of work / business of the applicant
or Place of present residence of the applicant or Branch maintaining salary account of the applicant
Semi-urban and rural branches may finance in their service command area and other easily
approachable areas.
Any deviation from the above may be considered with prior approval of Regional Authority.
Unified Processing Charges:
Upto Rs.50 Lacs: 0.50% of Loan amount: Minimum: Rs.7,500/- (Upfront)

Maximum: Rs.12,500/-
Above Rs.50 Lacs: 0.25% of Loan amount: Minimum : Rs.7,500/- (upfront)

Maximum: Rs.20,000/-
For Staff members:
Actual Charges for Advocate / Valuers / CERSAI / ITR verification (if any) only to be recovered.
Pre Closure Charges:

No pre closure charges on housing loan in any kind of repayment.

BARODA HOME IMPROVEMENT LOAN
Target Group: (same as Home Loan scheme)

 Resident Indians Non-Resident Indians (NRIs) holding Indian passport or Persons of Indian origin
(PIOs) holding foreign passport, singly or jointly or Overseas Citizens of India (OCI).
 Staff members are also eligible (since product features of Housing Loan to Staff under Public scheme
is realigned with regular Home Loan schemes w.e.f. 01.04.2016)
 HUFs are not eligible.
PURPOSE:
 For repairs / renovation / improvement of existing House/ Flat.
 Purchase of furniture / fixtures / furnishing / other gadgets such as fans, geysers, air Conditioners,
water filters, air purifiers, heaters, desert coolers, etc
Maximum Loan Amount (Ticket Size): - Rs. 50 Lacs
Margin: 25 % of Project Cost which includes :-

 estimated cost of repairing / renovation
 cost of furniture / fixture / furnishing / other gadgets
Repayment Period: Maximum -15- years
Moratorium period: 06- Months or one month after completion of repair/renovation work, whichever is
earlier.
Age: same as Home Loan scheme
Rate of interest (Pricing): As per home loan loan scheme
Income criteria and Repayment capacity: Same as home loan scheme.
SECURITIES:
 Mortgage of the property to be repaired / renovated.

 If mortgage is not feasible, Branch can accept, at its discretion, security of adequate value in the form
of Fixed Deposits, Life Insurance Policies, Government Promissory Notes, Shares and Debentures, Gold
ornaments or such other securities including third party guarantee from individual/s as may be deemed
adequate, with the prior permission of Regional Head.
 Margin on securities is to be maintained as per extant guidelines applicable for financing against such
securities.
 Loans up to Rs.50, 000/- in rural areas and up to Rs.2/- Lacs in other areas can be given on clean basis
provided employers undertaking to recover instalment from salary is made available or third party
guarantee of a person whose worth should be at least double the amount of loan and subject to obtain
ECS mandate for recovery of EMIs as per extant guidelines. However, a stamped undertaking that the
borrower shall not create any charge on the said property to any third party and that he will create
mortgage of the dwelling units/ housing property at a later date if desired by the bank, be obtained
from the borrower.
 Total clean/unsecured exposure (i.e., without collateral security) to the customer including this loan
should not exceed Rs.2/- Lacs.
DOCUMENTATION:
 Term loan agreement.
 General form of Guarantee (LDOC 33) after incorporating additional paragraph, wherever third party
guarantee is stipulated.
 Additions to be made in existing housing loan application.
 Usual procedure for creation of equitable mortgage of the immovable property being financed.
DISBURSEMENT OF LOAN:
In case of repair / extension—directly to the borrower subject to verification of bills. For furniture /
fixtures / furnishing and other gadgets directly to the supplier.
Unique processing charges: As per home loan scheme.
INSURANCE OF THE HOUSE:

Insurance modalities are similar to the housing loan product. Insurance is to be extended only if the
house is mortgaged with the Bank.
PRIORITY SECTOR CLASSIFICATION:

Loans for repairs to damaged houses up to Rs.2 lac in rural and semi urban areas, and up to Rs. 5 lacs
in urban areas, will be treated as priority sector advances.
FREE CREDIT CARD:

Guidelines for issuing Credit Card are similar to housing loans to individuals.

BARODA ADDITIONAL ASSURED ADVANCE (AAA)
TYPE OF FACILITY:
 Term Loan / Demand Loan (as per total period of loan).
 Separate loan account is to be opened.
 Borrowers name to be similar name/s as per housing loan.
PURPOSE OF LOAN:
Any purpose excluding speculative or illegal purpose.
ELIGIBILITY:
 All Existing Home Loan Borrowers including NRIs /PIOs, Staff and Ex-
 Staff Members (availed home loan under public scheme as well as Staff
 Housing Loans) whose Asset classification is Standard.
MAXIMUM AGE:
 Age of the borrower + tenure of AAA loan should not exceed 70 years.
 Age of the borrower + tenure of AAA loan should not exceed 65 years (For NRIs/PIOs/OCIs)
LIMIT:
 Minimum: Rs.1.00lac
 Maximum: Rs.200.00lac
Subject to 75% of Residual Value of House Property after deducting 150% of outstanding loan amount
of existing home Loan whichever is lower.
MARGIN:
25% of Residual Value of House Property after deducting 150% of Outstanding loan amount of Existing
home Loan.
FOIR-Fixed Obligation to Income Ratio:

Repayment capacity to be calculated in same line with Home Loan. There should be commensurate
increase in take home salary / income of the borrower when AAA facility is considered. Borrower to
submit necessary papers in support of income.
REPAYMENT PERIOD:
As per request of the borrower subject to repaying capacity. However the maximum period should not
be more than the remaining period of Home Loan. Repayment by Equated Monthly Installments (EMI).
First installment to fall due one month after first disbursement.
In case the Home Loan a/c is foreclosed, then the repayment period of AAA loan account is to be
rescheduled in such a way that the loan (AAA) is liquidated maximum within a period not exceeding -4-
years.
Interest Rate: 1 Year MCLR + Strategic Premium + 1.50%
SECURITY:
 Extension of the existing equitable mortgage of the housing loan.
 Personal guarantee of third party if the same is stipulated in Housing loan.

Unified Processing Charges;
 0.25% of the Loan amount; Minimum: Rs.5,000/- (upfront)
 Maximum: Rs.12, 500/- plus Service Tax
DOCUMENTS:
In case of Term Loan
 Term Loan Agreement
 General Form of Guarantee if guarantee is stipulated.
In case of Demand Loan

 DP Note
 Letter of installment with acceleration clause.
 General form of Guarantee, if guarantee is stipulated.
VALUATION OF THE PROPERTY:

 In case of properties acquired within last -3- years, amount of Registered Sale Deed or the Realisable
Value whichever is lower should be taken as value of property.
 If the present Realisable value is higher than the Registered value (Registered within last 3 years)
and if it requires to consider present Realisable value as value of property, for any reason, prior
permission from Regional Authority to be obtained for the same.
 In other cases, i.e. execution of the Sale Deed is prior to 3 years, present Realisable Value as per the
fresh Valuation Report from the Bank‟s approved Valuer to be accepted to the satisfaction of the
sanctioning authority, for calculation of the loan limit.
 In case of existing Home Loan accounts, present Realisable Value to be accepted as value of the
security; subject to the condition that present valuation is carried out only after -3- years from the date
of previous valuation.
MAXIMUM TIMES THE LOAN CAN BE AVAILED:

This facility can be availed maximum five (05) times during entire tenure of Home Loan provided
previous AAA account has been adjusted.
INSURANCE OF HOUSE / FLAT:

Property Insurance Cover to be obtained at the cost of borrower as per Bank‟s norms. Free Personal
Accidental Death Insurance Cover is available under Master Policy.
IN CASE OF HOUSING LOANS TAKEN OVER FROM OTHER BANKS / HFCs:

Asset Classification of the account taken over must be “Standard”. There must not be any over dues at
the time of take over. Statement of account obtained from the earlier bank / HFC should be in a
position to clearly reveal “Principal” repaid & it should be confirmed separately by writing the letter to
the concerned Bank / HFC.
Valuation of the property should be done afresh for granting Housing Loan. Other guidelines regarding
sanction of Housing Loans / Insurance / Recovery of charges etc. to be followed.

Baroda Pre Approved Home Loan
Modified Guidelines w.e.f 01.07.2016: Rs.7,500/- (upfront). If the borrower submits the property documents
with in the validity period of pre- approval letter, balance amount of unified processing charges as applicable
to Home Loan only will be recovered from the borrower:
 Baroda Pre Approved Home Loan’ provides in-principle approval’ for a Home Loan prior to identification
of a specific house/flat/plot by a prospective applicant of Home Loan.
 The ‘in-principle’ sanction letter for ‘Baroda Pre Approved Home Loan’ will give eligible loan amount
calculated as per prevailing interest rates and other existing guidelines of Home Loan.
 The loan eligibility will be assessed on the basis of income details of the customer as per existing
guidelines of Home Loan scheme to Resident Individuals or NRI/PIO/OIC or Baroda Home Loan
Advantage as the case may be.
 The ‘in-principle’ approval shall be valid for -4- months from the date of issue.
 Processing Charges: As per guidelines up to 30/06/16; 50% of unified processing charges applicable to
regular Home Loan scheme with a minimum of Rs.2,500/- and a maximum of Rs.10,000/- will be
recovered upfront and will be non-refundable.
Modified Guidelines w.e.f 01.07.2016: Rs.7,500/- (upfront). If the borrower submits the property documents
with in the validity period of pre- approval letter, balance amount of unified processing charges as applicable
to Home Loan only will be recovered from the borrower.
(BCC:BR:108:588 dated 05.12.2016--Modificqtion in the guidelines on Rote of lntetest for Home

Loons & Cor Loons for opplicont/s hoving (-1) or 0 Bureou Scores)

Baroda Home Loan Advantage
 The scheme will be available to Resident Individuals, NRIs/PIOs and for Home Loan to Staff under
Public scheme.
 The Home Loan sanctioned will be linked with Saving Bank Account.
 The rate of interest applicable on this SB account will be Zero.
 Under the scheme, the borrower shall have the option to deposit all his savings in the linked
SB account to avail maximum benefit of interest in the Home Loan account.
 Any credit available in the linked SB a/c at the end of the day will be counted for credit in
linked Home Loan account. Consequently, the borrower will get the benefit of interest amount
reduction in the Home Loan account to the extent of daily outstanding credit balance in the Savings
Bank account.
 Facilities available for linked SB account: -- Balance in SB account is available for drawal on demand.
Hence, borrower is eligible for Cheque book facility, ATM cum debit card, internet banking
facility, mobile banking facility etc. As per normal Savings Bank rules. Charges for cheque book,
ATM card etc will be as applicable in Savings Bank accounts.
 New Savings Bank account will be opened in separate scheme code (even if the borrower is
maintaining another SB account as per normal scheme) and will be linked to existing Home Loan
account.
 The Home Loan account may continue in the existing scheme code itself.In such a case, branch needs
to link the new SB account to existing home loan account.
 A suitable request letter to be obtained from the borrower/s to convert existing Home Loan
account to Baroda Home Loan Advantage.
Rate of Interest:
Loan amount upto Rs.75 Lacs : ROI as applicable to regular Home Loan
Above Rs.75 Lacs: 0.25% over the ROI as applicable to regular Home Loan.
Security Documents:
 Term Loan Agreement for Home Loan (LDOC-23A) as in case of Regular Home Loan.
 Agreement for .Baroda Home Loan Advantage.- for linking Savings Bank account . As per
Annexure. II.
 Other usual documents as in case of regular Home Loan.
Other guidelines:
 The actual interest debited in the Home Loan account is to be considered for issuance of interest
certificate for the purpose of income tax. The principal component for income tax purpose also to
be calculated on the basis of actual amount credited in the Home Loan account (as per extant
guidelines).

 All other guidelines/ product features of regular Home Loan to Resident Individuals/ NRIs/PIOs
and Home Loan to staff under public scheme as the case may be will be applicable.
 The balance available in the linked savings bank account will NOT be counted as CASA
Deposit. To achieve this, the scheme will be opened under SBA, but the GL code of this SBA will
be that of HL GL Code. Branches can open the new SB account with zero balance.
 Therefore, the balance of Home Loan account and linked savings SB account will be netted for
the purpose of reporting including for ASCROM purpose.
Baroda CRE Home Loan.
As per RBI guidelines, Bank’s exposure to third dwelling unit onwards to an individual will be treated as CRE
(Commercial Real Estate) exposure. CRE exposure to the extent secured by Commercial Real Estate attracts
risk weight of 100%. (Risk weight for regular Home Loan is – Upto Rs.75 Lacs- 50%; above Rs.75 Lacs-75%).
Provision on standard CRE Home Loans to be made at 1% instead of 0.40% for regular Home Loans.
In terms of above guidelines, Home Loan for third dwelling units onwards to an individual is not being
considered under our regular Home Loan scheme of Retail credit.
Rate of Interest:
0.25% over applicable rate on normal Home Loans.
Service Charges:
Same Unified processing charges as applicable for Normal Home Loans.
Credit Rating:
Credit rating to be done as per Home Loan Model under Retail Rating Models.
Margin/Promoter s contribution:
Same margin norms applicable for normal Home Loans.
Maximum Period:
Maximum period will be same as applicable to normal Home Loans.
Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS)
The Ministry of Housing and Urban Poverty Alleviation, Government of India, has established a Credit Risk
Guarantee Fund Trust for providing guarantee in respect of low –income housing loans. A Credit Risk
Guarantee fund Scheme for low income Housing (CRGFS) has been launched by the Government of India on
31st October 2012, which will be managed by the national Housing bank.
Under the scheme, the trust will provide credit risk guarantee to the lending institution against their housing
loans up to Rs. 5.00 lakh granted to the borrowers in the Economically Weaker Section (EWS)? Lower Income
group (LIG) categories in urban area without requiring any collateral security and /or third party guarantee.
The extent of Guarantee Cover to be provided under the scheme is 90% of the amount in default in respect of
loan amount up to Rs.2.00 lakh and 85% of the amount in default for housing loan above Rs.2.00 lakh and up
to Rs. 5.00 lakh. Our Bank has executed a MOU with the National Housing Bank on 4th March 2013 for
participating in CRGFS.
Eligibility: -
New Borrowers in EWS/LIG category of the population who are seeking individual housing loan not
exceeding a sum of rs.5.00 lakh or such amount as may be decided by the Trust from time to time and
a housing unit size up to 430 sqft carpet area and to which housing loan has been provided without
any collateral security and/or third party guarantee. Eligible borrowers, as defined above, forming a
group or housing society of at least 20 members, shall also be eligible under the scheme.
(Refer Circular No. BCC: BR: 105/269 dated 28.06.2013). The trust shall cover Housing Loans
sanctioned to new eligible borrower in the low income housing sector in urban areas for Housing Loans
not exceeding `5.00 Lacs after entering into an agreement with the Trust, with out any collateral
security and/or third party guarantees. (Our Bank has executed MOU with the National Housing Bank
on 04.03.2013 for participating in CRGFS)
Extent of Guarantee:-
Housing Loan by individual Borrowers- up to Rs. 2 lakh or such amt. decided by the Trust from time to
time. 90% of the amount in default subject to the celling of 90% of the sanctioned housing loan
amount
Above Rs. 2.00 lakh and up to Rs.5.00 lakh or such amount as decided by the Trust from time to time.
85% of the amount in default subject to ceiling of 85% of the sanctioned housing loan amount.
Guarantee Fee: -
One time Guarantee fee at the Rate of 1.00% of the total loan amount shall be paid upfront to the
Trust within 30 days from the date of first disbursement of housing loan or 30 days from the date of
demand advice of guarantee fee whichever is later or such date as specified by the Trust.The
Guarantee fee will not be charged from the beneficiary as an specified by the trust or within the period
of 24 months after the last disbursement.
Lock-in Period:-No claim can be made to the trust for settlement

BARODA ASHRAY
(Reverse Mortgage Loan)
PURPOSE:
To supplement the cash flow stream of senior citizens in order to address their financial needs by way of
mortgage of self-occupied property (house / flat).
TYPE OF FACILITY:
Combination of monthly annuity payments, and Lump sum payments for up-gradation/
renovation/home improvement/ extension of residential property. Lump sum payments for medical /
other emergencies/ exigencies of the family Lump sum payment will be subject to maximum 10% of
the total Loan limit assessed.
NATURE OF FACILITY: Term Loan.
AREA COVERAGE: All domestic branches.
ELIGIBILITY:
1. Should be Senior Citizen of India, above 60 years of age.
2. Married couples will be eligible as joint borrowers provided one of them is above 60 years of
age and spouse is not below 55 years of age at the time of application.
3. Should be the owner of a residential property (house or flat) located in India in his/her own
name.
4. Residential property should be used as permanent primary residence (fully self occupied
property).
5. Ex-staff members shall also be eligible to avail loan under the product.
ELIGIBLE END USE OF FUNDS:

1. Up gradation, renovation and extension of residential property.
2. Home improvement, maintenance
3. Insurance of residential property.
4. Medical, emergency expenditure for maintenance of family.
5. For supplementing pension / other income.
6. Repayment of an existing loan taken for the residential property to be
a. Mortgaged.
7. Any other genuine need.
8. Loan amount will not be used for speculative, trading purposes.
MAXIMUM AMOUNT:
The maximum loan amount including interest for entire life shall be restricted to Rs. 1 crore, subject to
the margin of 20% on present market value of the property.
As an exigency arrangement, the borrowers may be counseled to keep 5 % of limit assessed for
medical / any other unforeseen financial requirements in entire life span. In case of any lump sum
payment, the annuity needs to be recomputed after giving effect of the interest on such amount.

However, annuity will be computed considering the life expectancy of 80 years (treating the loan
tenure of 20 years), but initially payments shall be made for 15 years and if any of the borrowers
survives, the loan may further be extended for next 5 years and accordingly, annuity may be disbursed
for next 5 years.
RIGHT TO RESCISSION:
The borrower(s) shall be given 7 business days to cancel the transaction, the right of rescission. If the
borrower(s) does not intend to avail the loan, processing charges may be waived.
However, if loan amount has been disbursed, the entire loan amount will need to be repaid along with
applicable interest.
DISBURSEMENT / TENOR OF LOAN:

1. The amount will be directly disbursed to the borrower/s in monthly / quarterly / half-yearly /
annual installments.
2. If loan is also considered for repayment of existing loan raised on the security of the
property from any institution, the payment of such amount shall be directly paid to the Bank
/ FI concerned.
3. Directly pay the property tax or hazard insurance Premium.
4. Lump-sum payment to the borrower/s directly on account of illness of the borrower / family
member, home improvement, maintenance, up-gradation of house and any other exigency
requirements.
OPTION TO ADJUST PAYMENTS:
The Bank shall have the option to revise periodic / lump sum amount at the interval of every 5 years
based on valuation of the property.
Borrower shall be provided with an option to accept such revised terms and conditions for furtherance
of the loan.
REPAYMENT OF LOAN:
The loan shall become due and payable only when the last surviving borrower dies or would like to sell
the home / permanently moves out of the home for aged care to an institution or relatives.
“Permanent move” shall generally mean that neither the borrower nor any co-borrower would be living
in the house continuously for one year or do not intend to live continuously.
1. The loan will, as such, become due for recovery and payable after death of the last surviving
spouse.
2. Settlement of loan, along with accumulated interest, to be met by the proceeds received out of
sale of residential property.
3. The borrower(s) or his/her/their estate shall be provided with the first right to settle the loan
along with accumulated interest, without sale of property. A reasonable period of 2 months may
be provided when repayment is triggered, for house to be sold.
4. Surplus if any, remaining after settlement of the loan with accrued interest, shall be passed on to
the estate of the borrower.

FORECLOSURE:
The loan shall be liable for foreclosure due to occurrence of the following events of default:
1. If the borrower has not stayed in the property for a continuous period of one year.
2. If the borrower fails to pay property taxes or maintain and repair the residential property or fails to
keep the home insured, the Bank reserves the right to insist on repayment of loan bringing the
residential property to sale and utilizing the sale proceeds to meet the outstanding balance of principal
and interest.
3. If borrower(s) declare/s him / her / themselves Bankrupt.
4. If the residential property so mortgaged to the Bank is donated or abandoned by the borrower(s).
5. If the borrower(s) effect changes in the residential property that affect the security of the loan for the
Bank viz. renting out part or all of the house; adding a new owner to the house’s title; changing the
house’s zoning classification; or creating further encumbrance on the property either by way taking
out new debt against the residential property or alienating the interest by way of a gift or will.
6. Due to perpetration of fraud or misrepresentation by the borrower(s).
7. If the government under statutory provisions, seeks to acquiring the residential property for public
use.
8. If the government condemns the residential property (for example, for health or safety reasons).
RATE OF INTEREST:- MCLR +SP+ 1.75%
SECURITY:
 Simple / Equitable mortgage of the Residential property.
 Commercial property will not be taken as a security under the product.
TENURE:
15 years. The tenure may further be extended till survival of the borrower/s subject to the advance
value of the property.
PROCESSING CHARGES:
0.20% subject to maximum of Rs. 10,000/- (one time) + applicable Service Tax.
VALUATION OF PROPERTY:
 The property is to be valued by Banks / Government approved valuer as per extant guidelines, at the
time of considering the facility.
 Subsequently, the property to be revalued at the interval of every five years.
AGE OF BUILDING TO BE MORTGAGED:

1. The age of building should not exceed 40 years.
2. Building more than 40 years old may be accepted as security, subject to approval of Regional Head,
who will ascertain structural soundness of the building by obtaining opinion and certificate from
approved engineer, about structural soundness of the building and its residual life.
INSURANCE:
Insurance of the residential property mortgaged (cost to be borne by borrower).

MAIN DOCUMENTS REQUIRED TO BE SUBMITTED BY THE APPLICANT:
1. Documents relating to KYC norms.
2. Original title deeds of the property offered for mortgage.
3. Latest maintenance, Water Tax, Municipal Tax and any other such taxes paid receipt (No taxes
should be in arrear, while considering the loan).
4. No objection letter from Co-Op Society.
5. Permission to create Equitable Mortgage from society
6. Confirmation of society that Bank’s lien on society records is noted.
DOCUMENTATION:
 Loan agreement.
 Deed of Simple Mortgage / Equitable Mortgage.
 Declaration from the Borrower/s.
LEGAL OPINION ABOUT TITLE DEEDS:

1. Legal opinion to be obtained from Bank’s approved advocate.
2. Actual Legal fees to be borne by the borrower.
OTHER CONDITIONS:
1. The incumbent/s should have clear title indicating the Ownership of the property.
2. In case of lease hold property, residual period of lease should be at least equal or more of the
difference of present age of the borrower/s and normal life expectancy age of 80 years plus 5
years.
3. In case of income tax payee, it is to be ensured that no income tax is in arrear at the time of
sanction of the loan, once in a year thereafter.
4. Application form as per Circular.
5. No pre payment charges for full / partial pre-payment of the loan at any time.

BARODA MORTGAGE LOAN to Resident Indians/N.R.I
PURPOSE:
For any legitimate purpose except for speculations.(Proposals from Persons involved in Real estate
developments, property dealers/brokers, share/stock brokers not to be considered)
TYPE OF FACILITY:
Overdraft with reduction of limit in a phased manner.

Term Loan
ELIGIBILITY:
Salaried Employees / Professional, Self Employed & Others who are income tax assessee for last 3
years.
Age:
 Minimum: 21 years. Maximum: 60 years
 The Customer age + Overdraft / Loan tenure should not exceed 65 years.
 Minimum gross annual income: For residents Rs. 3.00lacs; for NRI: Rs.5.00lacs
 Proposals from persons involved in real estate Developments, property dealers/Brokers, share/stock
Brokers and persons engaged in speculative activities should not be considered
 N.R.Is are eligible for term loan/ Demand Loan not for overdraft.
LIMIT:
Minimum: Rs. 2.00 lac
Maximum: (for all category of borrowers)
Metro branches Rs.10.00crs

Urban branches Rs.5.00crs
Semi Urban branches Rs.3.00crs
Rural branches Rs.0.25lacs
(Subject to income criteria, repayment capacity and advance value of the property offered as security)
INCOME CRITERIA (Income Multipliers):

Salaried:
 GMI up to Rs.75, 000/- : -30- times of GMI
 GMI above Rs. 75,000/- upto Rs.3.00 Lacs: -48- times of GMI
 GMI above Rs.3.00 Lacs : - 60- times of GMI
Others:
 GAI upto Rs.5 Lacs : -5- times of GAI
 GAI above Rs.5 Lacs upto Rs.8 Lacs : -6- times of GAI
 GAI above Rs.8 Lacs : -8- times of GAI

Income to be considered for multiplier:
 For Salaried Persons: Average of last 3 months‟ Gross Monthly Income (GMI).
 For Others: Average of last 3 years’ Gross Annual Income (GAI).
 If agriculture / any other regular income is declared in the IT return, the same can be considered for
eligibility.
 Income of all the joint owners of the property who are co-borrowers can be clubbed.
 The facility can be considered against property to be mortgaged in the personal name of borrower or
His/her close relatives viz. spouse, parents, son, daughter, brother, sister, brother’s wife who should
stand as a co-borrower.
 If the income of co borrower/s (i.e, close relatives viz.spouse, parents, son, daughter, brother, sister,
brother’s wife) is accepted for the purpose of addition of their income to the income of principal
borrower for arriving higher eligible limit, sustainability of income of co-borrower/s has also to be
ensured and assessed in the same line of salaried/nonsalaried/agriculturist etc as the case may be.
 In case of Agriculturists who are predominantly dependent on agriculture and not required to file
income tax returns, their income may be assessed by obtaining income certificate from the local
competent revenue authority only.
 The income mentioned in the certificate must be assessed properly taking in to consideration land
holding of the Agriculturist, area of land actually being cultivated by him, cropping pattern and acreage
under different crops together with - number of crops harvested in a year depending on availability of
irrigation facility etc. The assessment of income so arrived must be properly recorded with justification
in the appraisal note.
 Income of co-applicant/s can be combined for higher eligibility. However, number of co-applicants,
whose income is considered for eligibility to be restricted up to -3-.
REPAYMENT CAPACITY (FOIR; fixed obligation to income ratio):
All category of borrowers:

 GMI up to Rs.75,000/- : 50%
 GMI above Rs.75,000/- to Rs.3.00 Lacs : 60%
 GMI above Rs.3.00 Lacs : 70%
The same base of the income as considered for „Income Multiplier‟ (Income criteria) to be considered for
FOIR (Repayment capacity) also.i.e.,
 For Salaried Persons: Average of last 3 months‟ GMI (Gross Monthly Income)
 For Others: Average of last 3 yea
 Deductions to be considered from the last month‟s GMI (for salaried persons) or Last year‟s Annual
Income (for others).
 Deductions include Income Tax, PF, Professional Tax, EMIs of existing borrowings and other
deductions, if any.
In case of Overdraft, repayment capacity norms should be applied as if a Term Loan is sanctioned for a period
of -144- months or maximum maturity as per the age criteria of the borrower whichever is lower.
MARGIN:
40% on Realizable Value of immovable properties
SECURITY:
1. Mortgage of Immovable Properties:
2. Residential Property (House / Flat)
3. Commercial property (Building / Land & Building)
4. Plot of Land (not agricultural land)
Note:
 Prior to 23.05.2016, in case of plot of land, the same allotted by /purchased from any Development /
Government Authority only was allowed. Otherwise the same was considered with deviation from Zonal
authority. However, w.e.f. 23.05.2016, with the modifications in the parameters/guidelines of the
product, all such stipulations have been removed and any type of immovable property as mentioned
above are acceptable
 If the property is purchased within last -3- years, the Registered Value should be considered.
 In case plot of land, it should be identifiable by boundaries /demarcation.
 In case of any type of Tenanted properties, adequate measures to be taken to safeguard Bank‟s
interest. Guidelines of Circular No. BCC:BR:106/406 dated 14.10.2014 issued by Legal Department,
BCC regarding precautions to be taken while accepting tenanted property as security should be
followed scrupulously
THIRD PARTY GUARANTEE: Third party personal guarantee may not be insisted upon.
REPAYMENT PERIOD:
Term Loan : -120- months
Moratorium period: Maximum -3- months. Interest to be recovered separately as & when applied in
the account during moratorium period.
For Agriculturists:
To be fixed as annual / Half yearly repayment for principal and interest considering the harvesting
pattern and / or other sources of income.
Overdraft : -12- months; subject to annual review
In case of Overdrafts:
Repayment capacity norms should be applied as if a Term Loan is sanctioned for a period of -144-
be recovered as and when applied in the account.Minimum annual turnover in the account should be at
least 25% of the limit.
Wherever it is observed at the time of review that stipulation of annual turnover is not complied with, the
limit should be reduced annually as under:
 Maximum period of overdraft: 12 years.
 Reduction in operative limit proportionately by end of each year, synchronizing with review of the
account.
 Alternatively branch may explore the possibility of converting the overdraft facility into Term Loan
and fix EMI for recovery of the balance amount.

The facility may be continued without any condition of reduction till the maximum age specified above, if
desired by the borrower, subject to:
 Annual review & satisfactory conduct of the account
 Minimum annual turnover in the account is at least 25% of the limit.
With a view to take care of the periodical reduction in the operative limit in case of Overdraft facility, following
clause be added in the loan application and sanction (at the time of initial sanction / review of the facility)
letter:
“The Bank shall have the right to progressively reduce the limit of overdraft sanctioned hereby every year/
month from time to time during the availment of the OD limit. However, it is agreed and understood that such
commitment for progressive reduction in the overdraft limit is and will be without prejudice to the rights of the
Bank to call for accelerate and demand repayment of entire outstanding amount in overdraft limit at any time
and from time to
time”
Adoption of Specific Pre fixed EMI dates for Retail Loans:

As per the guidelines conveyed vide Circular No.BCC:BR:108/404 dated 02.09.2016, Branches have to
adopt prefixed specific dates - 08th or16th or 25th as EMI dates for all Retail Loans, out of which
the preferable date convenient to the borrower, considering the salary date/monthly remittance dates
etc. In any case, even in case of loans with moratorium also, the dates - principal demand date/
interest demand date/ first repayment start date should be uniform for a particularaccount and should
be 08th or 16th or 25th. The above guidelines are applicable to all the fresh sanctions of Retail
Loans w.e.f. 10.09.2016.
Unified Processing Charges-

Loan:
1% of Loan amount with maximum Rs.1,50,000/-Minimum: Rs.7,500/- (upfront). Balance amount of
processing charges will be recovered at the time of conveying sanction.
Over Draft:
Upto Rs.3.00 Crores: 0.35% of limit with maximum: Rs.75,000/- Above Rs.3.00 Crores: 0.25% of the
limit without any maximum.
Pre Payment charges:
Pre payment within -12- -12- months after initial

sanction : Nil
Overdraft facility: Prepayment charges will be calculated on the sanctioned limit.
Term Loan: Prepayment charges to be calculated based on amortization balance as per repayment
schedule.
VALUATION OF PROPERTY:
The property being accepted as security should be got valued by our Bank‟s approved valuer at the

In case of limit above Rs.1.00 Crore, 2nd valuation of the property also to be obtained and to be
satisfied upon. The lower of the -2-valuations to be considered while calculating the limit.
In case of properties acquired within last -3- years, amount of Registered Sale Deed or the Realisable
Value whichever is lowershould be taken as value of property.
If the present Realisable value is higher than the Registered value (Registered within last 3 years) and
if it requires to consider present Realisable value as value of property, for any reason, prior permission
from Regional Authority to be obtained for the same.
Age of building to be mortgaged:
The age of building should not exceed 25 years.
Building more than 25 years old may be accepted as security, subject to approval of Regional
Authority, who will ascertain structural soundness of the building by obtaining opinion and certificate
from approved engineer, about structural soundness of the building and its residual life. The residual
life of the building should be at least 5 years
more than the term of the loan.
INSURANCE:
Insurance of the property taken as security as per the valuation report for full value excluding cost of
land. The charges to be borne by borrower/s.
LENDING POWERS:
Sanctioning authorities up to Grade / Scale III are authorized to sanction facilities up to Rs. 25 lacs and
Authorities under SMG/S IV are authorized to exercise normal DLPs for sanction of limits under the
scheme.
ACTIVITY CLEARANCE:
To be obtained from Regional Heads for facilities upto Rs.3.00 Crores and for facilities beyond Rs.3
Crores Zonal Heads are authorized to grant Activity clearance.
Proposals being considered by SMSs and Centralised Processing Centre (CPC) are kept out of purview of
Activity Clearance.
Rate of Interest:
Applicable rate of interest on Mortgage Loan will be based on CIBIL Bureau score of the applicant / co-
applicants, whose income are considered for eligibility:
CIBIL cut off Scores Rate of Interest

800 & above MCLR -1 Year + Strategic Premium + 1.75%
760 & above but less than 800 MCLR -1 Year + Strategic Premium + 2.25%
Less than 675 MCLR -1 Year + Strategic Premium + 3.50%
-1 / 0 MCLR -1 Year + Strategic Premium + 2.50%

Bureau score Validations:
Cut off on CIBIL score is stipulated at 725 for taking fresh exposure. ‒ If more than one applicant is
there, AVERAGE of Bureau scores of the applicants (whose income are considered for eligibility), to be
considered for Cut off score for sanction of loan as well as for Pricing.
In such cases, bureau score of applicant/s having (-1) or (0) to be excluded for average calculation. However,
in such cases of joint applicants, individual CIBIL score of all the applicants (whose scores are considered for
average calculation) should be minimum 675.
Deviations in Bureau Score validations:
1. Deviations in Bureau score (i.e. for less than 725) can be considered for existing as well as new
customers with proper justifications which are to be mentioned in the Appraisal Note.
2. Proposals of applicant/s having CIBIL score of (-1) or (0) can be considered by the Sanctioning
authority, without deviations, for existing as well as new customers.
3. Cut off CIBIL score 675 to less than 725: Deviation decision with RMCC. (If number of applicants
whose income is considered for eligibility is one.)
4. In case of more than one applicant, if average score is 675 to 724and / or any of the applicant/s score
is less than 675 – Deviation decision with RMCC.
5. Cut off CIBIL score less than 675: Deviation decision with ZOCC and applicable ROI will be with
maximum spread as per the product. (If number of applicants whose income is considered for eligibility
is one.)
6. In case of more than one applicant, if average score is less than 675 and / or any of the applicant/s
score is less than 675 – Deviation decision with ZOCC. (Applicable ROI will be with maximum spread as
per the product).
Note:
a) Bureau score of applicants having (-1) or (0) to be excluded for average calculation and for deviation.
b) Bureau score validations are applicable only for applicant/s whose incomes are considered for eligibility.
c) In case of multiple deviations in Bureau score to be considered at various levels (i.e. one at RMCC &
another at ZOCC), all the deviations in Bureau score to be considered at higher level (ie.ZOCC).
d) At the time of review, in case of Term Loans & Demand Loans,deviations in CIBIL score, if any, need
not to be referred to deviation authority as mentioned above. However, pricing should be linked to
CIBIL score as per the applicable interest rate structure.
e) Credit Card default:
 Cases where credit card account status write-off / settlement involving amount upto
Rs.25,000/- No deviation is required (in case of fresh, review with increase & takeover
proposals)
 Cases where credit card account write-off / settlement involving amount above Rs.25,000/- took
place in the past: Deviation powers rest with the authorities as under:
Parameter Authority
For proposals falling upto the powers of RMCC ZOCC
For proposals falling under the powers of ZOCC COGM - BCC

MAIN DOCUMENTS REQUIRED TO BE SUBMITTED BY THE APPLICANT:
 I.T Returns for past 3 years
 In case the overdraft amount exceeds Rs. 5 lacs copy of Latest Income Tax Assessment Order.
 Form No 16 along with salary certificate from the Employer.
 Original title deeds of the property offered for mortgage
 Latest maintenance, Water Tax, Municipal Tax and any other such taxes paid receipt.
 Non encumbrance letter from Co-op Society.
 Permission to create Equitable Mortgage from society.
 Confirmation of society that Bank’s lien on society records is noted.
 Last 6 months statement of accounts of Main Bank account in case main account is not with the
Branch.
TAKE OVER OF MORTGAGE LOAN ACCOUNTS FROM OTHER BANKS:
Mortgage loan taken from other banks / financial institutions can be taken over by following the extant
guidelines in respect of takeover of borrowal accounts
OTHER CONDITIONS:
In case of NRIs:
 The repayment of the loan may be made by debit to NRE / FCNR / NRO accounts of the non-resident
borrowers or out of inward remittances by the borrowers.
 Close relatives of the borrower in India may also repay the installments loans, interest and other
charges, if any, through their bank account directly to the borrower's loan account.
 In terms of RBI guidelines, it is to be ensured that the proceeds of rupee loan are not utilised for any
of the following activities:
 The business of chit fund, or Nidhi Company, or Agricultural or plantation activities or in real estate
business, or construction of farm houses, or Trading in Transferable Development Rights (TDRs), or
Investment in capital market including margin trading and derivatives.
 An undertaking to this effect must be obtained and kept on record.
 Detail guidelines as per circular- BCC:BR: 108/433 dt -01.10.2016.

LOAN AGAINST FUTURE RENT RECEIVABLES
PURPOSE:
General Business / Personal Needs
(Except for speculative or any other activity restricted by RBI / Govt)
ELIGIBILITY:
 Owners who have let out or propose to let out their premises Wherein Bank has considered loan
also against uncertain period of lease to reputed Companies / MNCs / Banks / Multinationals /
Public Sector Undertakings /Established Commercial Organizations, Institutions / Govt., Quasi
Govt. Departments etc.
 And lords of Bank of Baroda branch / office premises / residential flats, houses leased out to
Bank of Baroda.
Note: Exposure must be under commercial real estate segment as per extant guidelines of RBI / our Bank
from time to time.
LIMIT & MARGIN:
55 % of rent (net of TDS, advance rent, security deposit) due and receivables, for the ***unexpired
certain period of lease and uncertain period of lease (optional period) subject to: (this is for Scheme
under CRE: For Non CRE- unexpired certain period of lease)
RATE OF INTEREST -Base Rate + 3.25% + TP
Minimum amount of Loan:

 Rs.5.00 lacs (As per BCC:BR:106/410 dt 18.10.2014)
 For Landlord of Bank of Baroda Premises: No minimum limit
 Maximum exposure for Single Borrower: Rs.200 crores
 Maximum exposure for Group Borrower: Rs.500 crores
 Maximum eligible limit to be fixed considering the unexpired certain lease period and uncertain
period of lease (Total option & certain period of maximum 10 years)
 For the period of computation of quantum of rent receivables, the option period to be taken into
consideration should not exceed 1/3rd of the certain period.
REPAYMENT:
Loan is to be repaid in Equated Monthly Installments (EMI) with a maximum period of 10 years or
unexpired certain period of lease and optional period of maximum next 10 years, whichever is less. The
maximum rental period (Including the certain and optional period) should be 10 years. (For CRE)
Note: Cash flow generation of the borrower is to be kept in mind, while proposing repayment schedule.
Ballooning / Accelerated repayment, if there is increase in lease rental during the tenor of loan.
SECURITY:
For Loans up to Rs 5.00 lacs – Assignment of future rent receivables and third party guarantee
acceptable to the Bank. Such loans should be classified as ‘UNSECURED’ and sanction should be as per
discretionary lending powers for unsecured advances.
For Loans above Rs 5.00 Lacs –
 In addition to the assignment of future rent receivables, mortgage of the leased properties plus
any other acceptable security, value of which should be at least 1.25 times of the loan amount.
[The valuation should be as per the current market price of the property, which is to be
mortgaged, as assessed by a certified valuer].
 Tripartite agreement amongst the Bank, the borrower and the tenant / lessee providing for
payment of the rent directly to the Bank
Note: In normal circumstances, mortgage of lease hold property (whose future rent is assigned) will be taken
as security.
Authority for allowing deviations:

If for exceptional reasons mortgage of leasehold property (whose future rent is assigned) is not
available as security, other acceptable security may be taken with the approval of next higher
authority, the value of which should be at least 1.25 time of the loan amount.
Authority for allowing deviation:

Wherever Tripartite Agreement is not feasible such as in the case of Government Department / Public
Sector Units / Multinational Companies suitable letter from borrower for collecting rent directly to be
obtained and lodged with lessee and undertaking from the lessee to pay such rent direct to Bank
should be obtained.
LEASE AGREEMENT:
 Loan should be given only when properties are leased under registered lease deeds.
(Registration of lease deeds is compulsory)
 In case rent agreement is on ‘leave and license’ basis, the agreement should be vetted by Zonal
Legal Cell and their suggestions, if any, to be incorporated in the final “leave and license”
agreement to be executed and registered.
PROCESSING FEE (INCL. DOCUMENTATION FEE):

Upto Rs 10 Crores: 0.50% of loan amount subject to Maximum of Rs 5 Lacs.
Above Rs 10 Crores: 0.50% of loan amount subject to maximum of Rs 50 Lacs
The above charges are to be levied once only at the time of sanction and are exclusive of service tax.
No processing charges for review of facility unless there is change in terms of original sanction.
Actual stamp charges, valuation charges of Immovable property, insurance premium & legal opinion fee will be
borne by the borrower and has to be recovered by the branches upfront.
UPFRONT FEE:
0.50% of the loan amount subject to maximum of ` 50 Lacs at the time of initial sanction.
OTHER CONDITIONS:
 Certified copies of Lease Deed, Rent Agreement under “Leave and License” Scheme, Tripartite
agreement, Letter of authority and undertaking from tenant / lessee to collect rent directly by the Bank
are to be got vetted by the Legal Department / Bank’s Legal Advisor beside scrutiny of title to property
for 30 years by Bank’s Legal advisor to be obtained .

 Zonal Authorities are empowered to relax rate of interest up to BPLR for the proposal falling up to their
powers.
 Insurance for full market value of the property to be mortgaged with Bank Clause.
 Takeover norms given in Domestic Loan Policy are not applicable for takeover of loan A/Cs of other
Banks for this scheme. However following norms should be should be strictly adhered :
 Accounts with existing lenders should be under the category of “Standard Assets”
 Satisfactory report from the existing Bank / FI and / or satisfactory conduct of account as per latest
statement of account.
 There should not have been any reschedulement / restructuring in the account during last two years.
 Credit rating is to be carried out as per the extant guidelines of the Bank.
 Activity clearance is required and Zonal Head is authorized up to their DLP and likewise GM (Corporate)
/ ED/CMD for all other cases within their DLPs.
 Minimum FACR should be 1.25 times.

BARODA TRADERS’ LOAN
(Previously named as BOBVYAPAAR)
TYPE OF FACILITY: Overdraft / Loan
ELIGIBILITY:
 All persons engaged in trade of any commodity / goods not prohibited by law or opposed to public
interest. Individuals, Firms, Pvt. Ltd. Co; Proprietorship and partnership concerns engaged in trade,
Registered Co-op. Societies are also eligible.
 The credit facility may be considered for traders who are established in their line of business preferably
for 2 years.
 Trading units established by our existing customers with satisfactory dealings or near relatives, even if
these are established for less than 2 years.
 Traders units of non-customers having less than 2 year’s establishment, with the prior approval of
Regional authorities.
 HUFs & Public limit co. is not eligible.
PURPOSE:
(a) Working capital requirements.
(b) Development of shop (e.g. purchase of equipment, P.C., air-conditioner, furniture etc. but not for
purchase of shop), for need based requirements subject to a maximum of 25% of the working capital
limit sanctioned.
(c) Non fund based facilities like BG & LC within the limit based on value of securities Limit (amount of
loan)
Minimum: (for fresh exposure w.e.f. 23.05.2016)

 Rs.2.00 Lacs (Rural / Semi Urban Branches)
 Rs.5.00 Lacs (Urban / Metro Branches
(Existing accounts with limits less than the minimum stipulation can be continued under the scheme)
Maximum:
 Metro branches: Rs.10.00 Crores
 Urban branches: Rs.5.00 Crores
 Semi Urban branches: Rs.3.00 Crores
 Rural branches: Rs.1.00 Crores
ASSESSMENT OF WORKING CAPITAL:

20% of the accepted projected Sales; subject to verification of Sales Tax returns of the previous years
/ qarters.
OR
Advance Value of collateral assets to be charged, whichever is lower.

Assessment of Loan for Shop Development:
 Need based finance to be considered as per requirements subject to a maximum of 25% of the
working capital limit sanctioned (within overall limit assessed based on value of security).
 However, Working Capital Advance & Loan for Shop Development together should not exceed
advance value of collateral security or maximum limit specified for the scheme.
MARGIN:
 10% on Bank’s own FDR.
 15% on surrender value of LIC policies, NSCs, and Govt. Bonds.
 40% on immovable property as per recent valuation report. If the property is purchased within last -
3- years, the registered value to be accepted as the market value.
REPAYMENT:
 Overdraft: 12 months subject to annual review.
 Loan: Maximum 60 months (depending on repayment capacity)
Valuation of Property:
 The property being accepted as security should be got valued by our Banks approved valuer at the
 Further, the valuation is to be done once in -3- years.
 In case of Limit above Rs.1.00 Crore, 2nd valuation of the property also to be obtained and to be
satisfied upon.
 The lower of the two valuations to be considered while calculating the Limit.
 In case of properties acquired within last -3- years, amount of Registered Sale Deed should be
taken as value of the property. (In such cases, fresh valuation may be dispensed with if the sanctioning
authority is satisfied with Registered value).
 If the present Realisable value is higher than the Registered value (Registered within last 3 years)
and if it
 require to consider present Realisable value as value of the property, for any reason, prior permission
from Regional Authority to be obtained for the same.
 Age of property should not be more than 25 years old. However for properties, which are older than 20
years but not more than 25 years, branch is to ascertain structural soundness of the property by
obtaining an approved engineer's certificate, certifying that structural soundness as well as residual life
of the building should be at least 5 years more than the repayment period of the loan.
 For dwelling units which are older than 25 years, Regional Head may authorize such cases on selective
basis, subject to, ascertaining structural soundness of the building by obtaining an approved engineer’s
certificate, certifying the structural soundness as well as residual life of the building should be at least
five years more than the repayment period of the loan.
 As regard overdraft facility secured by immovable property.
 Building less than 25 years old – guidelines applicable to general advances to be followed.
 Older than 25 years - the branch will be required to carry out inspection of the property
every year at the time of review of facility and obtain structural soundness report from
architect every 3rd year along with valuation of property.

 In case, any defect is observed during inspection of the security or in architect's report,
branch will be required to ensure substitution of the security having requisite value
immediately or ensure liquidation of the facility at the earliest but not later than 12 months
period in any case.
SECURITY / DOCUMENTATION:
 D. P. Note
 Letter of Continuing Security
 Hypothecation of Goods (Where ever applicable)
 General Form of Guarantee in case the immovable property charged to bank is in the name of 3rd
party.
 Under taking from borrower to exclusively deal with our Bank. Tangible collateral securities in the form
of mortgage of land (not agricultural land) and buildings, NSCs, our Bank’s FDRs, Govt. Bonds, LIC
policies (surrender value), approved bonds. Valuation of property to be done by Bank/Govt. approved
valuer and valuation to be done once in 3 years.
 Property to be mortgaged must be in the name of either:-Borrower, Proprietor, Partner, Director, Close
relative of borrower who should stand guarantor.
 Third party property provided credit facility is for Rs. 1 lac and above
Take Over Norms: Current Ration Min: 1.17:1;

Debt Equity Ratio: Max: 6:1
Credit rating Cut off:

 Internal Credit Rating to be done at the time of sanction /review of the account.
 Facilities upto Rs. 2.00 Crores to be rated under Retail Rating Model- BTL Model, hosted in LAPS
 Facilities of more than Rs.2.00 Crores to be rated on BOBRAM.
Internal Credit Rating cut off:
 Limits up to Rs.2.00 Crores – BTL Rating: BTL-6,

 Limits above Rs.2.00 Crores - BOBRAM Rating: BOB-6.
 No fresh exposure below BTL-6 / BOB-6 w.e.f. 25.05.16
Rate of Interest:
The pricing is linked with Internal Risk Rating as under: (w.e.f. 23.05.2016)
a) For BTL-1/BOB–1 to BTL-4/BOB–4 rated accounts:
MCLR -1 year + Strategic Premium + 1.50%
b) For BTL/BOB – 5 & BTL/BOB – 6 rated accounts:
c) For below BTL/BOB – 6 rated accounts:
d) No fresh exposure below BTL/BOB-6
In case of accounts having rating below BTL/BOB-6, applicable ROI will be with maximum spread as per the
product

Bureau score based validation:
 CIBIL verification for Proprietor / Partners / Directors to be carried out. Consumer Bureau – CIBIL
Trans Union Score under version-1).
 Cut Off on CIBIL score will be at 725.
For Partnership Firm or Pvt Ltd Company, all the partners / directors should have minimum CIBIL „Cut Off‟
score for considering fresh exposure.
 Score 675 to less than 725: Deviation decision with RMCC.
 Less than 675: Deviation decision with ZOCC.
 (-1) or (0): Can be considered by the sanctioning authority with proper justifications.
 Credit Card default of small amount (i.e. less than Rs.10,000/-) can be reviewed by the respective
authority while considering deviation in Bureau Score.
In case of multiple deviations in Bureau score which are to be considered at various levels (i.e. one at RMCC &
another at ZOCC), all the deviations in Bureau score to be considered at higher level (i.e, ZOCC).
Unified processing charges :

0.35% of Loan / OD Limit, without any maximum amount.
Minimum: Rs.7,500/- (Upfront), These charges considered as if only one property is offered as
security. If two or more properties are offered as security, Rs.7,500/- per each additional property
would be applicable as upfront charges in addition to normal changes as mentioned above.
OTHER TERMS & CONDITIONS:

 Undertaking from the borrower exclusively to deal with our bank.
 Stock statements to be obtained only once in a year, i.e. as of 28th February on or before 10th of
March and inspection be conducted and report to be kept on record.
 Credit rating required as per extant guidelines.
 Declaration on annual sales, supported by Returns / Assessment of Sales Tax to be obtained and kept
on record at the time of annual review. Copy of latest sales tax-returns to be obtained with
application form, in case of units having sales of more than Rs. 40 lacs per year.
 Obtaining insurance cover may not be a condition for sanction of the facility. However branch may
counsel their borrowers to have the stock insured in their own interest at their cost.
 Inspection to be conducted once a year.
 Obtaining of Balance Sheet and P/L account is dispersed with. However, declarations of annual sales
supported by Returns / assessment on sales tax / income tax, etc. are obtained and kept on record at
the time of annual review.
 Pre-sanction inspection is to be carried out and report to be kept on record.
 Parties to undertake that they do not owe any overdue statutory dues like Sale-Tax, Income Tax,
Corporation Tax, Professional- Tax, etc. And have obtained/renewed licenses from concerned
authorities required for trading in the merchandise/goods.
 Valuation of immovable property offered as security is to be done by Bank / Govt. approved valuer.
Valuation is to be done once in 3 years.
 Branch to endeavour to display Bank’s name as financier from publicity angle.

Baroda Traders Gold Card Scheme
TYPE OF FACILITY: - Overdraft
ELIGIBILITY:
Individuals, Proprietorship & Partnership Firms, Private Limited Companies and Registered Co-operative
Societies engaged in trade of any commodity/goods and have been sanctioned overdraft facility under
Baroda Traders Loan Scheme above `25 Lacs and fulfilling the following criteria;
1. Existing account in Standard Asset Category for last 2 years
2. No major inspection irregularity in the account
PURPOSE:
To meet the emergent working capital requirement arising due to peak season requirements, delayed
payments by debtors, for tax payment, etc.
AMOUNT:
Assessment of limit: The credit limit is to be considered as under:
20% of the sanctioned Baroda Trader Limit OR 70 % of realizable market value of immovable property
(including realizable market value set aside for sanctioning of regular Baroda Traders Limit), whichever
is lower.
In case of other securities like FDRs, Life insurance policies, NSCs, Government Bonds etc. 20% of
the sanctioned Baroda Traders Loan limit upto the residual portion of the advance value of
securities with sufficient margin.
MARGIN: Nil
REPAYMENT:
12 Months - to be allowed on 3 occasions in a year for a maximum period of 2 months on each
occasion. However, there should be gap of 1 month between two drawls.
SECURITY / DOCUMENTATION:
 Extension of equitable mortgage of property/ies mortgaged
 D P Note – as per constitution of borrower
 General form of Guarantee – LDOC -33
 Letter of continuing security- LDOC-7
 Hypothecation of stocks (wherever applicable) - LDOC-17B / 17C
 Documents as above for Gold Card
Rate of interest: - 50 bps over applicable ROI to Baroda Traders Loan Overdraft facility.
Credit Rating: -
Minimum BTL – 4 for limit up to Rs.200/- Lacs including Proposed limit under Baroda Traders Gold Card.
Obligor rating of minimum BOB-4 for limit above Rs.200/-Lacs.
Imp. Note: Only two retail loans can be considered against property charged to the Bank exclusively for
Retail Loans, subject to availability of adequate residual value as advised vide Circular No. BCC: RM: 97/75
dated 14.11.2005.However powers for allowing second loan rests with the Regional Manager.

Baroda Traders loan to commission agents (arthias)
Target Group:
Commission Agents / Arthias, engaged in Retail Trade, who undertake responsibility of realization of
debtors.
Nature of Facility: Overdraft
Eligibility:
 Commission agents / Arthias (functioning in markets / mandies) who are engaged in trade activities
on commission basis and enjoying good reputation in the market with Two years of experience in
the line of their business activity (i.e.extending credit to farmers, for supplying of inputs as also for
buying the output from the individual farmers /SHGs /JLFs). They should be registered with the
Market Committee and possess a valid license issued by the Authorised government agencies.
 New Arthias (during first year of operation) will also be eligible provided they have minimum 2
years of working experience / family background in this line of activity.
 HUF & Public Limited Companies are not eligible.
Limit
Minimum: Rs. 25,000/-
Maximum: - Rs.100 Lacs for Rural /Semi Urban / Urban Branches
Rs.200 Lacs for Metro Branches
Assessment of working Capital limit:

The credit limit is to be considered on the basis of commission income shown in P&L account (instead
of sales) as under:
 -8- times of commission / brokerage / Aarath received /earned as per last Audited Balance
Sheet or 8 times of such average income for last three years, whichever is less (assuming
2.50% commission X 8 times = 20% of Sales)
Or
 Advance Value of immovable properties to be charged or 90% value of FDR or 85% Face value
of NSCs / surrender value of LIC policies/ Government bonds etc., whichever is lower.
 Advance Value: 60% on Realizable Value (RV) as per recent Valuation Report in case of
immovable properties (in similar lines to Traders Loan Scheme)
Rate of Interest: Same Pricing as Baroda Traders Loan scheme

 0.35% of the limit sanctioned without any maximum amount. Minimum:Rs.7,500/- (upfront)
 The above charges considered as if only one property is offered as security. If two or more
properties are offered as security, Rs.7,500/- per each additional property would be applicable as
upfront charges in addition to normal charges as mentioned above.

Additional Provisions:
 Branch to obtain copies of Registration Certificate from Sale Tax deptt and from Krishi Upaj Mandi of
the concerned town/village.
 Branch to obtain Audited Financial Statements of the applicant Borrower (if the sales turnover based on
Commission income is more than Rs 100 lacs or more) and it is mandatory. Audited Financial
Statements to be obtained and examined at the time of fresh sanction as well as at the time of each
review.
 Branch to ensure that VAT is actually paid and return is filed by the Commission Agent/Arthias. The
return should match with the commission income.
Other Parameters:
All other parameters/ guidelines viz. security, margin on securities, sanctioning authority, Documents,
Insurance, credit rating, take over norms, other provisions etc as applicable to Baroda Traders loan will
be applicable to ‘Baroda Traders Loan to Commission agents (Arthias)’.
Note:
“BARODA TRADERS LOAN AGAINST GOLD ORNAMENTS / JEWELLERY scheme is discontinued w.e.f
23/05/2016 as per circular no BCC:BR:108/350 dated 01.08.2016”

BARODA ADVANCE AGAINST GOLD ORNAMENTS / JEWELLERY
Target Group:
All individuals including staff and ex-staff members, being the true owner of the Gold Ornaments
/Jewellery. KYC guidelines must be strictly complied with, No third party loan to be granted i.e. loan
to be granted to immediate owner only.
Purpose: Any purpose other than speculation
Security:
The loan shall be secured by pledge of min. 22 carat / hall mark jewellery / Gold coins. Ornaments
containing Gems and stones will not be accepted.
(The weight of the Gold Coin(s) does not exceed 50 grams per customer. BCC:BR:105/271 17.06.2013)
Limit:
 Min Rs.0.25lac Max: Rs.10.00 lacs
 However max limit is to be fixed on the basis of per gram. Advance value of Gold as circulated by our
bank on Quarterly basis.
 75% for loan upto Rs.3.00 Lacs and 65% for loans exceeding Rs.3.00 Lacs of the market value
of the Gold Ornaments/Gold Jewellery/ Gold Coins (specially minted and sold by Banks),
assessed by Bank’s approved Valuer, offered as security Or
 The advance value calculated on the basis of circular issued by Rural & Agri Banking Dept, BCC and
revised from time to time, whichever is lower.
Margin:
 Up to loan of Rs.3.00 lacs: 25% on the present market value of the Gold Ornaments assessed by
the Bank’s approved assayer. Ornaments containing gems and stones will not be considered as
security.
 Above Rs.3.00lacs: 35% of above
Period-
Loan: for maximum of 12 months; Overdraft is not permitted
(Refer Circular No.BCC:BR:106/290 dated 07.08.2014 & BCC:BR:107/455 01.09.2015 conveying
recent RBI guidelines)
Rate of interest:
MCLR + Strategic Premium + 3.00%
Unified Processing charges: 0.50% of loan limit minimum Rs.250/- plus service tax.

Documents /Papers:
1. Application Form meant for Baroda Traders Loan
2. Detailed appraisal Note
3. D P Note
4. Letter of Pledge cum Take Delivery Note
5. Letter of Installment
6. Letter of undertaking for retail Loans
7. Hypothecation of goods
8. Letter of authority to pay assaying charges to the assayer.
Other Conditions:
1. Gold ornaments / Jewellery /Gold Coins shall be valued by bank’s approved Gold valuer/assayer in the
Branch Premises in presence of Branch Manager/Officer and the borrower concerned and a certificate
of valuation along with complete details of quality and quantity of securities of Gold Ornaments
/Jewellery shall be kept on record. After assaying, the gold ornaments are to be put in a cloth bag or
thick polythene bag and sealed in presence of the borrower / inscribing their name thereon. The details
of the sealed packet containing name of borrower, details of securities and loan sanctioned must be
recorded in a register under a specific serial number allotted to the packet and thereafter packet may
be kept under joint custody. The assayer must bring his own metal stamp and the same may be
affixed on the jewel packet along with the branch seal.
2. In case the Account turns NPA, method of recovery of Bank’s dues will be the same as in the case of
“Baroda Advance against Gold Jewellery / Ornaments”
3. Assayer’s Charges have to be borne by the borrower and charges will be same as in the case of
“Baroda Advance against Gold Jewellery / Ornaments” i.e. Rs. 250 per lac.
4. KYC Norms to be strictly complied with.
5. Sanctioning Authority to ascertain and ensure that the person offering the Gold Ornaments as security
is the actual owner of the ornaments and to make record of this fact in the appraisal note.
6. As the gold is highly price sensitive, branch to ascertain the value of ornaments on Quarterly basis and
ensure that necessary margin is maintained. If required, limits may be reduced to maintain the margin
and borrower may be advised to restrict his drawings upto revised limit.
7. Branches to use the services of the Assayer already empanelled for “Baroda Advance Against Gold
Jewellery/Ornaments” and charges to be paid @250/- per lac and in the multiples thereof, as applicable
for “Baroda Advance Against Gold Jewellery/Ornaments”
8. As per revised security norms, Gold coins (specially minted and sold by Banks) can now be accepted as
primary/collateral security.
9. Our Board at its meeting held on 02.03.2013 has waived the condition of getting insurance cover
against the security of Gold Ornaments/ Jewellery/ Gold Coins at the cost of the Borrower.
10. Detailed guide lines as per circular no Bcc/Br/102/264 20.09.2010 & BCC:BR:106/385 Dt- 01-09-2014.

EDUCATION LOAN - BARODA VIDYA
TARGET GROUP: Parents of Students pursuing school education from Nursery to Standard 12th.
ELIGIBILITY:
Should be an Indian national residing in India. Student should have secured admission to a Recognized
school / High school / Jr. College (including CBSE / ICSE / State Board) for any of the following
courses.
Stage I: Nursery to 5th STD.
Stage II: 6th to 8th STD.
Stage III: 9th to 12th STD.
Evening courses of institutes approved by State/ Central Govt
COVERAGE OF EXPENSES:
 Fees payable to college / school / Examination / Library / Laboratory fee / Fee and other
charges payable to hostel / Purchase of books / equipment / instruments /uniforms / Personal
Computers / Laptops wherever required.
 Caution deposit / building fund / refundable deposit supported by institution bills / receipts.
Cost of external coaching / tuition is not to be considered.
QUANTUM OF FINANCE:
 Need based finance subject to repayment capacity of parents. Maximum Rs.4.00 Lacs.
 Loan for stage II can be considered even though loan sanctioned earlier for stage I is
outstanding, or loan for Stage III can be considered even though loan sanctioned earlier for
Stage II is outstanding subject to repaying capacity and provided the loan account for previous
stage/s is/are conducted satisfactorily.
 Total amount of loan for all the stages sanctioned should not exceed Rs.4/- lacs.
MARGIN: NIL
REPAYMENT PERIOD:
Loan for each yearly sub limit is repayable in 12 equal monthly Installments. First installment to
be due 12 months after first Disbursement of each year’s loan component.
REPAYMENT CAPACITY:
Total deductions from the income including the proposed installment and interest should not exceed
60% of total income.
No documentation & processing charges. No exchange on Drafts issued in favor of school or student.
Rate of Interest :-
 MCLR + Strategic Premium + 2.50%
 0.50 % concession (w.e.f. 01.10.2013) in rate of interest to loans sanctioned for the benefit of girl
students. (prior to 01.10.2013 concession was 1.00%)
 No Penal interest.
 (For detailed guidelines on revision of ROI please refer General Guidelines on Education Loans Point
No.3)

FINANCING BRANCH:
Loan may also be considered at the place of posting / service of the parent after obtaining and
recording the proof of permanent residence for future reference.
SECURITY:
No tangible / collateral security. In case the loan is given for purchase of computer the same is to be
hypothecated to the Bank.
DISBURSEMENT:
Directly to School / Institution / hostel – term wise / year wise. Directly to bookseller / shop for
purchase of books, instruments, equipments.
DETAILS OF EXPENSES:
The details of expenses to be obtained from college / school / institution. In case such details are not
furnished by the school authorities’ suitable declaration from parents be obtained and carefully
examined / satisfied.
PROGRESS REPORT:
Progress report to be obtained at regular intervals and kept on record.
OTHER CONDITIONS:
A stamped declaration / an affidavit confirming that no Educational loan is availed from other banks/
institutions for the child for whom loan is sanctioned by us and shall not avail educational loan from
any other bank without obtaining NOC from our bank during the pendency of our educational loan. No
dues certificate need not be insisted upon.
CLASSIFICATION: Priority Sector
REPHASEMENT:
The rephasement of repayment in genuine cases and standard accounts is considered by the next
higher authority. Detail guide lines as per circular no- BCC: BR:106/ 384 dt. 01.09.2014

EDUCATION LOAN - BARODA GYAN
TYPE OF FACILITY: Term Loan
TARGET GROUP:
Students pursuing Graduation, Post graduation, Professional & other courses in India.
ELIGIBILITY:
All graduation courses / Post graduation courses, Masters and PhD / Professional courses / Other
approved courses / Computer certificate courses of reputed institutes accredited to Department of
Electronics or institutes affiliated to University / Courses like CA, ICWA, CFA, CS, etc./ Courses offered
in India by reputed foreign Universities / Evening courses of institutes approved by State Central Govt.
/ UGC / AICTE / AIBMS / ICMR / ICAR / Courses offered by National Institutes and other reputed
private institutions / The college / Institute must have been approved by the State / Central
Government / UGC / AICTE etc.
STUDENT ELIGIBILITY:
1. Should be Resident Indian.
2. Secured admission to either of above courses.
3. No minimum qualifying marks.
PURPOSE / COVERAGE:
Fees payable to college / school / hostel Examination / library / Laboratory fees /purchase of books /
equipments / instruments/ uniforms travels expenses / purchase of computers for completion of the
course any other expense required to complete the course. Caution deposit / building fund / refundable
deposit supported by Institution bills / receipts. Any other expenses required to complete the course –
like study tours, project works, thesis, etc. Cost of external coaching / tuition is not to be considered.
AMOUNT:
Max Rs.10.00 lacs
Need based finance subject to the repaying capacity of the parents / students, based on the expected
income to be generated after completion of the course (as per general assessment to be made by the
Branch).
MARGIN:
Up to Rs. 4 lacs: Nil
Above Rs. 4 lacs: 5 %
Margin may be brought in on year-to-year basis as and when disbursements are made on a pro rata
basis.
REPAYMENT:
Repayment holiday / moratorium: Course period + 1 year or 6 months after getting the job, whichever
is earlier. The loan is repayable in 10 years; if amount is up to Rs.7.50lacs & it is 15 years if amount is
above Rs.7.50 lacs after the above period.

SECURITY:
 Up to Rs. 4 lacs: No security
 Above Rs. 4 lacs upto Rs. 7.5 lacs: Collateral security in the form of suitable third party guarantee
along with assignment of future income of the student for repayment of the installments. The
documents should be executed by the student and the parent / guardian as joint borrower.
 Above Rs.7.50lacs: the collateral security is to be taken with 100% coverage at least.
CHARGES: No processing / upfront charges.
DISBURSEMENT:
Directly to School / Institution / hostel–term wise / year wise in stages as per the requirement /
demand. Directly to bookseller / shop for purchase of books, instruments, equipments.
REIMBURSEMENT:
For the first year of study, at times institutions insist that the students pay the fees immediately
on admission, such payments may be reimbursed after obtaining necessary proof of payment.
In genuine cases, expenses for purchase of books etc. may be reimbursed after obtaining
necessary proof of purchases and payment.
OTHER TERMS & IMPORTANT ASPECTS OF SCHEME:

 Stamped declaration / affidavit confirming that no loans are availed from other Banks / institutions.
 Close monitoring, continuous follow-up by calling for periodical performance reports and
maintenance of contacts.
 No dues certificate need not be insisted upon.
FREEBIES: Debit card to the student on his account.
CLASSIFICATION: Priority Sector
Note:
No application for educational loan received should be rejected without the concurrence of the next
higher authority.
ADDITIONAL LOAN / ENHANCEMENT IN LIMIT:

 Loan for higher studies in India under Baroda Gyan can be considered even though loan sanctioned
earlier under Baroda Vidya is outstanding subject to repaying capacity and provided the loan
account for previous stage/s is / are conducted satisfactorily.
 If the student wants to pursue further education, additional loan / enhancement in limit to continue
further course may be considered within the overall maximum limit The additional security, if
required, as per enhancement in limit should invariably be taken e.g. Mr. ‘A’ has availed educational
loan for his studies for MBBS. After completion of MBBS, he seeks admission for M.D. / M.S., he
may be granted loan within overall ceiling limit of amount, if available. In this case, the holiday for
repayment granted initially, will stand extended further as per the duration of the course.

FINANCING BRANCH:
 The scheme allows the student to have a choice in deciding on the Branch from where to borrow,
which is in close proximity to the permanent residence of parent/ at the place of posting/ service of
the parent, who will be co-borrower and recording the proof of permanent residence for future
reference.
 Education Loan applications should not be rejected merely for the reason that the particular area is
allocated to another Bank by SLBC / DLCCs.
REPHASEMENT:
The rephasement of repayment in genuine cases and standard accounts is considered by the
next higher authority.
Rate of interest:
 Up to 7.50 Lacs : MCLR + Strategic Premium + 2.50%

 Above 7.50 Lacs : MCLR + Strategic Premium + 1.75%
 Penal interest @ 2% p.a. on overdue amount, if the loan amount exceeds Rs.4/- lacs.
Concessions: 0.50% ,only to Girl Student

Baroda Education Loan to students of Premier Institutions (Under Baroda Gyan Scheme)
 Baroda Education Loan Scheme is aimed to provide financial support to the meritorious student for
pursuing higher education in technical and professional courses. Quality of education and better
placement records creates intense competition amongst students to secure admission in premier
educational institutes.
 The current rate of economic growth of the country demands technically and professionally trained
man power in large numbers which will spur the demand for Education Loans.
 Recently Education in the premier institutions like IIMs, IITs, IIFT,AIIMS, AFMC, ISB etc has become
much more costly. Qualifying for these institutions means a lot to students but funding a student for
these institutions also need ample financial capability.
 Many a times a student is unable to pursue a course in these premier institutions because of lack of
financial capability despite being an eligible candidate.
 In order to facilitate students who aspire for higher education in these prestigious and expensive
institutions, based on feedback received from operating units and information gathered about features
of other Bank’s products,
 Bank launched a new Education Loan Scheme on 26.04.2014 namely “Baroda Education Loan to
students of Premier Institutions” – new Special Education Loans scheme for students pursuing courses
in premier educational institutions – under Baroda Gyan.
 The unique features of this scheme should enable branches to popularize the same on a wider scale
and boost up quality lending under Education Loan to a significant extent.
Courses Eligible:
 Full time regular Courses conducted by the Premier Educational Institutions.
 List of the institutions are given as Annexure 13 (a) & 13 (b)] in circular no BCC:BR:106:152 dated
26.04.2014
 General Manager (Retail Banking), BCC may approve other insitutions / courses depending on future
prospects /recognition by user institutions.
Student Eligibility:
 Should be Resident Indian.
 Secured admission in professional / technical courses in India conducted by above mentioned
Institutions.
Coverage of expenses:
 Fee payable to college/Institution/University/school/hostel.
 Examination / Library / Laboratory fee.
 Hostel fees / charges.
 Purchase of books / equipments / instruments / uniforms.
 Caution deposit, Building fund / refundable deposit supported by institution bills/ receipts, subject to
condition that the amount does not exceed 10% of the total tuition fees for the entire course.
 Purchase of Personal Computer / Laptop - essential for completion of the course.
 Insurance premium for student borrower
 Any other expenses required to complete the course – like study tours, project works, thesis, etc.
 Cost of external coaching/tution is not to be considered.
Quantum of finance:
Category Maximum Loan Limit

No security With tangible collteral security of
Only co-obligation of parent full value of the Loan amount along with co-
/guardian obligation of parent/Guardian
Institutions under List – A Rs. 15.00 Lacs Rs.30.00 Lacs
Institutions under List-B Rs.7.50 Lacs Rs.30.00 Lacs
Need based finance subject to futurerepayment capacity based on projected future earning which should
commensurate with past placement records and average packages offered to the pass outs of the college.
Margin: NIL
Rate of Interest
For List-A Institutions:
Upto Rs.15.00 Lacs : MCLR + Strategic Premium + 0.25%
Above Rs.15.00 Lacs : MCLR + Strategic Premium
For List-B Institutions:

Upto Rs.7.50 Lacs : MCLR + Strategic Premium + 0.75%
Above Rs.7.50 Lacs: MCLR + Strategic Premium + 0.50%
As per circular no BCC: BR: 108/ 204 dt 10.05.2016 for following premium institutes the rate of interest is
revised as MCLR + Strategic Premium for all the slabs of loan.
(1) Indian Institute of Management (IIM) - Ahmedabad

(2) Indian Institute of Management (IIM) - Kolkata
(3) Indian Institute of Management (IIM) - Bangalore
(4) Xavier Labour Relations Institute (XLRI) - Jamshedpur
For these 04 institutes only up to Rs.30.00, although loan is available without colletaral security yet the
tangible networth of the parent/s / Guardian who stand as co-applicant/guarantor (together) should be not
less than the Loan amount sanctioned.
 No special concession for girl students under this scheme.
 Simple interest to be charged at monthly rests during the repayment holiday/moratorium
period.
 Penal interest @ 2% p.a. on overdue amount, if the loan amount exceeds Rs.4/- lacs.
 The accrued interest during the repayment holiday period to be added to the principal and
repayment in Equated Monthly Instalment(EMI) be fixed.
Period:
 Moratorium period Course period + 1 year, or 6 months after getting job, whichever is earlier.
 Repayment Period For loans upto Rs.7.50 lacs : Maximum 120 installments
 For Loans above Rs.7.50 lacs : Maximum 180 installments
 Note: these repayment periods are excluding education period.
 To commence after one year of completion of studies or six months after getting the job, which
ever is earlier.
 If the student is not able to complete the course within the scheduled time, extension of time
for completion of course may be permitted for a maximum period of 2 years. If the student is
not able to complete the course for reasons beyond his control, sanctioning authority may at his
discretion consider such extensions as may be deemed necessary to complete the course.
 In case of above extention, moratorium period will stand extended accordingly.

Unified Processing Charges: NIL
Security:
For Institutions in List-A:
Up to Rs. 15.00 Lacs:
Co-obligation of parents/guardian along with assignment of future income of the student for
payment of instalments.
Above Rs.15.00 Lacs: Tangible collateral security equal to 100% of the loan amount along with
assignment of future income of the student for payment of instalments.
For Institutions in List-B:

Up to Rs. 7.50 Lacs:
Co-obligation of parents/guardian along with assignment of future income of the student for
payment of instalments.
Above Rs.7.50 Lacs:
Margin on collateral Security:

Branches can obtain collateral security (wherever stipulated) equivalent to 100% of loan amount
without keeping any margin. However in case of securities like Govt. securities / Public Sector Bonds /
Units of UTI, NSC, KVP, LIC policy, gold, shares / debentures, Bank Deposit,Relief Bonds etc suitable
margin as per extant guidelines to be obtained.
Disbursement:
 Directly to Institution/hostel - term wise/ year wise, in stages as per the requirement/demand.
 Directly to book seller / shop for purchase of books,instruments, equipments.
 In case student does not secure hostel facility with educational institute, he may be allowed to make
his own arrangement if required. Lodging / boarding charges in such cases to be paid directly to
concerned establishment, after verifying bonafides of the same.
Reimbursement:
 For the first year of study, at times institutions insist that the students pay the fees immediately on
admission. Such amount may be reimbursed after obtaining necessary proof of payment.
 In genuine cases, expenses for purchase of books etc. may be reimbursed after obtaining
necessary proof of purchases and payment.
Details of Expenses:
The details of expenses for the entire course period to be obtained from college / institution. Progress
Report Progress report to be obtained at regular intervals & be kept on record.
Credit Rating:
 Case-1: Without Security (with co-obligation of parent/guardian)

Rating Model No.1 under Education Loan model is applicable.
Cut-off score is 96 and investment grade is EL-7
 Case-2: With Security (with co-obligation of parent/guardian)
New rating Model No.4 under Education Loan model is applicable.
Cut-off score is 149 and investment grade is EL-7
Documentation
 D.P. Note
 Letter of Installments with acceleration clause
 Declaration cum Undertaking cum Authority
 General form of Guarantee (if stipulated)
 Documents related to Mortgage of property /other securities (if stipulated)
 Stamped declaration/ an affidavit confirming that no Educational loan is availed from other
bank/ institutions
 Agreement to undertake assignment of Future Income (in case of Education Loan of more than
Rs.4.00 Lacs)
 Agreement between student/borrower and Bank, if eligible under Education Loan Interest
Subsidy scheme.
Classification of Advance:
 Upto Rs.10/- Lacs : Priority Sector
 Above Rs.10/- Lacs : Non-Priority Sector
Sanctioning Financing Branch:

 Branch which is in close proximity to the permanent residence of parent / at the place of
posting/service of the parent who will be co-borrower, after obtaining and recording the proof
of permanent residence for future reference.
 There is no stipulated service area approach to finance Education Loans.
 Education Loan applications should not be rejected merely for the reason that the particular
area is allocated to another Bank by SLBC / DLCCs.
Other Terms & Conditions or General Guidelines:

 Tangible collateral security equal to 100% of the loan amount along with assignment of future income
of the student for payment of instalments.
 The documents should be executed by both the student and the parent / guardian as joint borrower. In
case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law.
 A stamped declaration/ an affidavit confirming that no Educational loan is availed from other bank/
institutions.
 Agreement to undertake Assignment of Future Income is to be obtained in Loans above Rs.4.00 Lacs.
 In the normal course, while appraising the loan the future income prospects of the student will be
looked into. However,where required, the means of parent / guardian could also be taken into account
to evaluate re-payment capability.
 No dues certificate need not be insisted upon. Collateral Security :
 The Collateral security can be in the form of land /building / Govt. securities / Public Sector Bonds /
Units of UTI, NSC, KVP, LIC policy, gold, shares / debentures, Bank Deposit, Relief Bonds, etc. standing
in the name of student / parent / guardian or any other third party.
 Wherever mortgage of properties (land/building) is offered as security, the property should be got
valued by our Banks approved valuer or Govt. approved valuer
 As per extant guidelines at the time of considering the facility and the Realisable Market Value of
Property is to be taken as the value of property.
 In case of properties acquired within last -3- years, amount of registered sale deed should be taken as
value of property. (In such cases fresh valuation may be dispensed with if the sanctioning authority is
satisfied with registered value).
 But for any reason, if the present Market Value is higher than the registered value (registered within
last 3 years) it requires prior permission from Regional Authority to accept the present Realisable
Market Value as value of property.
 Similarly, if the present Market Value is lower than the registered value (registered within 3 years), the
present Realisable Market Value of the property is to be accepted as the value of the property.
 In case of other collateral securities like Govt. securities / Public Sector Bonds / Units of UTI, NSC,
KVP,Insurance policy, gold, shares / debentures, Bank Deposit, Relief Bonds, etc., the surrender value
(in case of Insurance Policy) /Outstanding amount (in case of Bank Deposit), face value (in case of
NSC,KVP, Govt Securities, Bonds etc) as the case may be accepted as the value of collateral security.·
All the General guidelines applicable to Baroda Gyan will be applicable to this Scheme.
 Borrower can avail interest subsidy under Education Loan Interest Subsidy Scheme (ELIS) if satisfying
the eligibility norms as per the Scheme.
Finacle Scheme Code: LA159
Interest Rate Table Code:

BPEB1 For Institutions under List -B
BPEA1 For Institutions under List -A
Detail guideline in circular no- BCC:BR:106/ 384 dt- 01.09.2014

EDUCATION LOAN - BARODA SCHOLAR
TARGET GROUP: Students going abroad for Professional / Technical studies.
ELIGIBILITY OF COURSES:
Graduate / Post Graduate / Doctorate / Job oriented professional / technical courses offered by
reputed Universities overseas.
STUDENT ELIGIBILITY:
 Should be an Indian National
 Secured admission to professional / technical courses at Foreign University / Institutions.
 No minimum qualifying marks required.
 Admission / Tuition Fees to College / University.
 Hostel / Mess charges.
 Examination / Library / Laboratory fee.
 Purchase of books / equipments / instruments / uniforms.
 Caution deposit / building fund / refundable deposit supported by institution bills / receipts.
 One way Travel expenses / passage money.
 Purchase of computers if essential for completion of the course.
 Any other expense required to complete the course e.g. study tour, project work, thesis, etc.
Listing of Institutes: As per Circular no BCC:BR:108/152 dt 31.03.2016

 List A Institutes (Abroad) offering higher study in Management [Adopted from FT 100 (Financial
Times-100) list for MBA]
 List B Institutes (Abroad) offering higher study in Science.
Loan Amount:
 Rs. 60 Lacs for List A Institutes & List B Institutes
 Rs. 40 Lacs for Institutes not specified in List A and List B
MARGIN:
 For Institutes specified in List A and List B : NIL
 For Institutes not specified in List A and List B: 10%
Rate of interest:
 List A Institute and List B Institutes:
 Other Institutes not specified in List A and List

REPAYMENT PERIOD:
 Repayment Holiday / Moratorium Period: Course period + 1 year, or 6 months after getting job,
whichever is earlier.
 The loan is repayable (max) in 10 years up to Rs. 7.50lacs & in 15 years if above Rs.7.50 lacs after
the above period.
 If the student is not able to complete the course within the scheduled time extension of time for
completion of course may be permitted for a maximum period of 2 years.
 If the student is not able to complete the course for reasons beyond his control, sanctioning
authority may at his discretion consider such extensions as may be deemed necessary to complete
the course.
 The accrued interest during the repayment holiday period to be added to the principal and
repayment in Equated Monthly Installments (EMI) be fixed.
PROCESSING CHARGES:
1 % to be recovered upfront which shall be refunded in its loan account, if applicant avails loan.
FINANCING BRANCH:
Loans up to Rs. 4.00 lacs: Loan may also be considered at the place of posting / service of the
parent after obtaining and recording the proof of permanent residence for future reference.
Loans above Rs. 4.00 lacs: Loans may also be considered at the place of posting / service of the
parent who is either co-borrower or guarantor of the loan as the case may be, after obtaining and
recording the proof of permanent residence for future reference.
SECURITY:
Up to Rs. 4.00 lacs: No security Coobligation of parents.
Above Rs. 4.00 lacs and up to Rs. 7.50 lacs: collateral in the form of a suitable third party
guarantees.
Above Rs. 7.50 lacs: Collateral security equal to 100% of the loan amount or suitable third party
guarantee along with the assignment of future income of the student for payment of installments.
NOTE:
 The document should be executed by the student and the parent / guardian. The security can be in the
form of land / building / Govt. securities / Public Sector Bonds / Units of UTI, NSC, KVP, LIC policy,
gold, shares / debentures, bank deposit, Relief Bonds, etc. standing in the name of student / parent /
guardian or any other third party with suitable margin. Margin on securities to be considered as per
extant guidelines.
 Wherever the land / building are already mortgaged, the unencumbered portion can be taken as
security on 2nd charge basis provided it covers the required loan amount.
 In case the loan is given for purchase of computer the same to be hypothecated to the Bank.
Regarding assignment of future income of the student, branches are requested to obtain a stamped
letter of undertaking as per proforma given by the Bank.
 No application for educational loan received should be rejected without the concurrence of the next
higher authority.

DISBURSEMENT:
 The loan to be disbursed in stages as per the requirement / demand directly to the institutions /
Vendors of Books / equipment / Instruments to the extent possible. Send covering letter along with
disbursement Demand Draft / Banker’s Cheque to the proposed college / university of admission
informing college / university authority about sanctioning of education loan to the student.
 Request the college authority to inform us, in case of suspension / dismissal / postponement of
attending class by the student. Obtain acknowledgement of letter from the college / university and
keep on record.
PROGRESS REPORT: Progress Report to be obtained at regular intervals and be kept on record.
OTHER CONDITIONS:
 A stamped declaration / an affidavit confirming that no Educational loan is availed from other bank
/ institutions for the student for whom loan is sanctioned by us and shall not avail educational loan
from any other bank without obtaining NOC from our bank during the pendency of our educational
loan be obtained.
 No dues certificate need not be insisted upon.
FREEBIES:
Drafts in foreign currencies drawn on our branches / subsidiaries required in favour of college /
University / Student will be issued free of exchange / commission.
ADDITIONAL LOAN / ENHANCEMENT IN LIMIT:

If the student wants to pursue further education, additional loan enhancement in limit may be
considered within the overall-ceiling limit. In this case, the holiday for repayment granted initially, will
stand extended further as per the duration of the course.
CAPABILITY CERTIFICATE:
Branches can also issue the capability certificate for students going abroad for higher studies. For this,
financial and other supporting documents may be obtained from applicant, if required. (Some of the
foreign universities require the student to submit a certificate from their bankers about the sponsors’
solvency / financial capability, with a view to ensure that the sponsors of the students going abroad for
higher studies are capable of meeting the expenses till completion of studies.)
REPHASEMENT: The rephasement of repayment in genuine cases is considered by the next higher authority.
CLASSIFICATION OF ADVANCE: up to rs.10.00 lacs only it is Priority Sector.

BARODA LOAN FOR CAREER DEVELOPMENT
TARTGET GROUP:
Individuals desirous of pursuing Higher Education in India or Abroad, but are presently gainfully
employed. Loan for pursuing vocational courses, trainings, pilot trainings, skill up gradation trainings,
diploma / degree courses offered in aviation, hospitability and travel management, executive
development etc
COURSES ELIGIBLE:
 Graduate, Post Graduate, Diploma, Professional Courses, Specialization courses offered by reputed
Universities / Institutions (Indian or Overseas), having assured employment prospects.
 Skill up gradation courses offered by various institutes (Indian / Overseas), having assured
employment prospects.
 Courses offered by Hospitality Management Institutes for Skill upgrade / Short course / Training etc.
 Pilot Training Courses, offered by reputed Institutions (Indian or Overseas), approved by Director
General of Civil Aviation (DGCA) / International Civil Aviation Organization (ICAO).
ELIGIBILITY:
 Applicant should be a Resident Indian.
 He / she should have secured admission to the course through Entrance Test / Merit-based selection
process.
 Tuition Fees, Examination fees, Library fees, etc. charged by the Institute.
 Hostel fees
 Cost of Books, equipments, instruments, etc.
 Personal Computers / Laptops, wherever required.
 Any other expenses required to complete the Course viz., Study Tours, Project works, thesis, etc.
QUANTUM OF FINANCE:
 Need bases finance, subject to repayment capacity of the applicant, based on expected income after
course completion.
 Maximum Loan:
(i) Courses within India: Rs. 10 lacs
(ii)Courses Abroad: Rs. 20 lacs
MARGIN:
15 % (Scholarship / Assistantship received if any, should not be included in margin)
REPAYMENT PERIOD:
Loan to be repaid in maximum 60 EMIs.
Repayment Holiday:
Course period + 6 months or 3 months after getting a job, whichever is earlier.
PROCESSING & DOCUMENTATION CHARGES:

As per Circular No.BCC/BR/99/321 dated 25.10.2007
SECURITY:
 Advance to be secured by way of 100 % tangible collateral security in the form of mortgage of
property, Assignment of securities like NSCs, KVPs, LIC Policies and Government Bonds etc.
 Assignment of Future income of the applicant.
 Personal Guarantee of Father / Mother of the applicant or any other person having sufficient worth.
DISBURSEMENT:
Directly to the Institute / University, as per schedule specified. Fees already paid may be reimbursed
against original receipt, within one year only.
SANCTIONING BRANCH:
Branch, which is in close proximity to the permanent place of residence of the applicant / parents.
OTHER CONDITION:
Periodical (Yearly / Half Yearly) Progress Report to be obtained and kept on record.
Rate of interest: MCLR + Strategic Premium + 2.75%

BARODA EDUCATION LOAN FOR VOCATIONAL EDUCATION AND TRAINING/ SKILL LOAN SCHEME
Purpose:
Coverage of expenses for pursuing Education and Training courses offered Bv ITIs, Polytechnics and
other technical institutions, for skill development & to earn livelihood.
Eligibility:
Vocational /Skill development courses of duration from 2 months to 3 years Run or supported by
Ministry /Deptt/Organization of the Govt or a Company /society/ organization supported by National
Skill Development Corporation or State, Skill Missions /State Skill Corporations, preferably leading to
a certificate /diploma /degree etc. issued by a Government Organization or an organization recognized
/authorized by the Govt. to do So State Level Bankers committee (SLBC) / State level Co-ordination
Committee (SLCC) may add other skill development courses /programmes, having good employability.
Maximum Amount:
Course of duration Need based finance

Up to 3 months Rs.20000/=
3-6 months Rs. 50000/=
6 months- 1 year Rs.75000/=
More than a year Rs.150000/=
Margin: Nil
Repayment & Moratorium:

Repayment to commence after a period of 6 months from completion of course of maximum 1 year
duration. Whereas for courses of duration of more than 1 year, repayment will commence after a
period of 12 months from the completion of course.
Repayment Period:
Amount of loan Max repayment period

Rs.50000 Up to 02 years
Rs.50000-Rs1.00lac 2-5 years
More than Rs.1.00lac 3-7 years.
Others:
Any application of this loan is to be disposed off within a period of 07 days & no loan application is to
be rejected without taking concurrence of next higher authority

PADHO PARDESH
 Interest Subsidy Scheme on Educational Loans for overseas studies for the students belonging to the
Minority Communities.
 The Prime Minister’s New 15 Point Programme for the Welfare of Minorities wasannounced in June,
2006. It provides that the schemes for scholarships for meritorious students from minority communities
will be formulated and implemented.
 The Ministry of Minority Affairs, Govt. of India has announced “Padho Pardesh”, a scheme of Interest
Subsidy on educational loans for overseas studies to promote educational advancement of student
from minority communities.
 The objective of the scheme is to award interest subsidy to meritorious students belonging to
economically weaker sections of notified minority communities so as to provide them better
opportunities for higher education abroad and enhance their employability.
Salient features of the scheme are as follows:

 This is a Central Sector Scheme to provide interest subsidy to the student belonging to the
communities declared as minority communities in terms of section 2 (c) of National Commission for
Minorities Act, 1992, on the interest payable for the period of moratorium for the Education Loans
under the Scheme of Interest subsidy on Educational Loans for Overseas Studies to pursue approved
courses of studies abroad at Masters and Ph.D levels.
 The Scheme is applicable for higher studies abroad.
 The interest Subsidy shall be linked with the existing Educational Loan Scheme of Indian Banks’
Association (IBA) and restricted to students enrolled for course at Masters, M.Phil and Ph.D levels.
 Loans sanctioned and disbursed from 2013-14 (i.e, from 01.04.2013) onwards will only be eligible for
interest subsidy.
 The interest subsidy under the scheme shall be available to the eligible students only once, either for
Masters or Ph.D levels. Interest subsidy shall not be available to those students who either
discontinued the course mid- stream, due to any reason, or those who are expelled from the
institutions on disciplinary or academic grounds.
 If a student violates any condition of the scheme, the subsidy will be discontinued forthwith.
 If a student is found to have obtained the subsidy by false statement/ certificates, the subsidy will be
withdrawn/ cancelled forthwith and amount of the subsidy paid shall be recovered with panel interest,
apart from taking criminal action as per law.
 The students obtaining benefits under this Scheme shall not be given the interest subsidy if he gives
up Indian citizenship during the tenure of the loan.
 The scheme will be evaluated at regular intervals by the Ministry or any other agency designated by
the Ministry and the cost of the evaluation study will be borne by the Ministry.
 The terms and conditions of the scheme can be changed at any time at the discretion of Ministry of
Minority Affairs to improve procedure and achieve more effective implementation. However, there
should not be financial implications.

Eligibility:
 The students who belong to Minority Communities viz. Muslims, Christians,Sikhs, Buddhists, Jains and
Parsis and should have secured admission in the approved courses at Masters, M.Phil or Ph.D levels
abroad for the courses covered under the scheme.
 He/ she should have availed loan from a scheduled bank under the Education Loan Scheme of the
Indian Banks Association (IBA) for the purpose.
 Branches should ensure that the students from the minority communities, who may also belong to
SC/ST/OBC category, do not avail interest subsidy from other sources for the same purpose.
Income Celing:
 Total income from all sources of the employed candidate or his/ her parents/guardians in case of
unemployed candidate shall not exceed Rs. 6.00 lakh per annum.
 Income certificate should be submitted from the notified authority in the State/ Union Territory.
Certificate obtained at time of availing loan will be sufficient.
Recommendatory Committee:
 Recommendatory Committee headed by Joint Secretary in-charge of the Scheme with representatives
of Finance Division, representative of Nodal Bank and concerned Director/Deputy Secretary as
convener will examine and recommend the applications for award of interest subsidy on quarterly
basis.
 To the extent possible, the benefit of Interest Subsidy will be given to notified minority communities in
the ratio of their population.
 Preference will be given to the girl candidates.
Interest Subsidy:
 Under the scheme, interest payable by the students availing of the education loans of the IBA for the
period of moratorium (i.e. course period, plus one year or six months after getting job, whichever is
earlier) as prescribed under the Education Loan Scheme of the IBA, shall be borne by the Government
of India.
 After the period of moratorium is over, the interest on the outstanding loan amount shall be paid by
the student, in accordance with the existing Educational Loan Scheme as may be amended from time
to time.
 The Candidate will bear the Principal installments and interest beyond moratorium period.
 Subsidy is admissible to the limits specified under IBA model scheme i.e, Rs.20 Lacs only.
Minority Certificate:
The student borrower has to produce Minority Certificate from:
i) Any Religions body who issues such certificate;
ii) From School/College Principal; and
iii) Self declaration.

BARODA AUTO LOAN
The Loan schemes are detailed as under:

Baroda Car Loan & Baroda Loan for Two Wheelers
PURPOSE:
For purchase of any new four wheeler, Car, Jeep, Station Wagon etc. and Two Wheeler for private use.
TYPE OF FACILITY: Term Loan
ELIGIBILITY:
 Salaried Employees / Directors of private / Public Limited Companies, Proprietors / Partners of
Partnership firms and Government Employees / individuals, high salary earners / Businessmen /
Professionals, farmers.
 Prior account relationship not essential. However, statement of account for last six months should be
studied to satisfy that the conduct of the account is satisfactory.
 Minimum age – 21 years & co-borrower -18 yers
 Maximum age – Salaried: Present age + repayment period should not exceed retirement age.
 Others: Present age + repayment period should not exceed 70 years.
 If the applicant‟s age + repayment period exceeds retirement age (in case of salaried person) or 65
years (in case of others), addition of co-applicant, preferably a family member should be stipulated. If
co-applicant is not available in such cases, proper justification thereof should be given in the proposal
by the sanctioning authority. However, if income of the co-applicant is not considered for assessment
of eligible amount of loan, the above stipulation of maximum age is not applicable for co-applicant/s
 Minimum Employment – one year / stable business.
LIMIT & MARGIN:
 Maximum Limit: Rs. 100.00 Lacs (For all categories)
Note: “ Loan for Second Hand Car Loan, Takeover of Car Loan & Loan for LPG/CNG gas kit are discontinued.”
Income Multipliers (Income Criteria):
Salaried person:
 GMI less than Rs.50,000: 24 times of GMI
 GMI 50,000 and above but less than Rs. 150,000: 30 Times of GMI
 GMI 150,000 and above: 36 times of GMI
Others:
 4 times of Gross annual income (average of 2 years Annual Income).
Income to be considered for multiplying:

 For salaried persons: Average of last 3 months GMI (Gross Monthly Income).
 For Others: Average of last 2 years Gross Annual Income, If agriculture income is declared in the IT
return the same can be considered for eligibility.

FOIR (Repayment Capacity):
 Total deductions including proposed EMI should not exceed as follows:
Salaried:
 GMI less than Rs. 50,000 p.m.: 60% of GMI
 GMI Rs. 50000 and above but less than Rs.1,50,000: 70% of GMI
 GMI Rs. 1,50,000 and above : 80% of GMI
 For Others:
 Average Annual Income (for last 2 years) less than Rs.6 Lacs: 60%
 Average Annual Income (for last 2 years) 6 Lacs and above: 80%
 Same income as considered for income multiplier to be taken for FOIR (Repayment capacity) also i.e,
 For salaried persons: Average of last 3 months GMI (Gross Monthly Income).
 For Others: Average of last 2 years Gross Annual Income.
 If agriculture income is declared in the IT return the same can be considered for eligibility.
 Deductions to be considered from the last Month GMI (for salaried persons) or Last year Annual
Income (for others)
REPAYMENT PERIOD: 84 EMIs
Margin: Loan to Value Ratio/Margin on-Road Price is based on Car segment & income level as per
Annexure –2(a) of circular no BCC: BR: 108/152 dt 31.03.2016.
Segment Type Length of Income (GMI) Gross Monthly GMI 1 Lac Model
. car of less than GMI and above
< 50, 000 50000 and Model
above but less
than 1 Lac
Margin(%) LTV(%) Margin(%) LTV(%) Margin(%) LTV(%) listed
below
A1 Mini Upto 20 80 10 90 5 95 do
4,000mm
A2 Compact & >4,000mm 20 80 10 90 5 95 do
Midsize – 4,500mm
A3 Executive & >4,500mm 25 75 15 85 10 90 do
Premium – 5,000mm
A4 Luxury 25 75 20 80 15 85 do
B1 MUV/MPV/SUV 25 75 20 80 15 85 do
Segment Models of Car

A1 Maruti 800, Omni, Spark, Santro ,Nano, Alto, Beat, i10,Estilo, Ritz, WagonR, Micra, Indica, Vista, Polo,
Palio,Brio, Jazz, i20, Figo, Swift, Pulse, Fabia, Aveo-UVA, Evo, Avventura, Eon, indigo, Etios Liva, Cross,
Baleno,Celerio, Sail-UVA, Punto, Brezza
A2 Swift Dzire, Manza, Logan, Aveo, Optra, Cruze, Fiesta,Linea, Aspire, Amaze, Honda City, Accent, Etios,Creta,
Verna, Verito, Scala, SX4, Sunny, Vento, Sail,Enjoy, laura, Rapid, Vibe
A3 Corolla, Octavia, Superb, Camry, Sonata, Optra,Civic, Accord, Elantra,, Endeavour, Jetta, Passat,Fluence
A4 Audi, Porsche, BMW, Mercedes, Volvo, Jaguar, Bentley, Rolls Royce,
B1 Innova, CRV, Tavera, Sumo, Vitara, Xylo, Captiva , Duster, Ecosport, Santa Fe, Quanto, Rexton,
XUV500,Grand Victra, Duster, Safari Storme , Fortuner,Scorpio, Virata, X-Trail, Teana, Landcruiser, Mobilio ,
Endeavour, Bolero, Gipsy, Ertiga and other MUV/MPV/SUVs.
Note:
Models other than mentioned above to be considered in Segment B1.The above classification of
segment is made based on SIAM (Society for Indian Automobile Manufactures) criteria, which is mainly
based on resale value of the vehicle. This segmentation is done by them every year. General Manager
(Retail Banking) is authorised to revise the segmentation, add/delete models as and when it is required
and shall be so advised to the branches whenever change is made by Retail Banking Dept.
SECURITY:
 Bank’s charge to be noted with RTO
 Comprehensive Insurance of vehicle with Bank clause
DOCUMENTS:
 D P Note,
 Hypothecation of Vehicle (LDOC-20),
 Letter of Installment with acceleration Clause,
 Declaration cum Undertaking cum authority (as per circular dt 30th April 2012),
 Bank’s Charge to be noted with RTO (Certified Xerox copy of RTO registration having bank’s name
as financier to be kept on record with the documents),
 Blank TTO form in duplicate
 General Form of guarantee if stipulated in sanction.
 Other documents to charge the Collateral securities if stipulated.
Rate of Interest:
Risk Based Pricing: Interest rates based on CIBIL Bureau score
CIBIL cut off store Rate of interest

800 and above 1 year MCLR + Strategic Premiu+0.25%
760 to 799 1 year MCLR + Strategic Premium+0.50%
(-1) or (0) 1 year MCLR + Strategic Premium +1.50%
For Staff members (irrespective of CIBIL score) 1 year MCLR + Strategic Premium
Bureau Score Based Deviations:

 Cutoff on CIBIL score will be at 725 (If more than one applicant is there, lowest of Bureau scores of
the applicants whose income are considered for eligibility,to be considered)
 675 to less than 725: Deviation decision with Level-2 (RMCC).
 Less than 675: Deviation decision with Level-3 (ZOCC) deviation (applicable ROI will be with maximum
spread as per the product)
 (-1) or (0) : Sanctioning authority can take decision.
CONCESSION IN RATE OF INTEREST:

 Concession of 0.50% in rate of interest will be provided to those who offer minimum 50 % of liquid
security e.g. NSC, KVP, LIC Policy or Fixed Deposit of our Bank as collateral subject to the condition
that applicable ROI should not fall below Base Rate.

 Concession of 0.25% in interest rate on car loan is available to all our existing home loan borrowers
having a good track record of repayment, without any overdue in a/c. subject to the condition that
applicable ROI should not fall below Base Rate.
INSURANCE:
Comprehensive Insurance of the Vehicle with Bank’s Clause. In case of second hand car, the
existing insurance policy be got transferred to the name of the borrower with bank’s clause.
OTHER CONDITIONS:
 Bankers Cheque / DD issued by the bank towards disbursement of car loan should be super scribed “
Car Loan to Mr. / Mrs. _________________.
 12 post dated cheques to be obtained in advance every year, with undertaking to maintain adequate
balance.
 Blank TTO form in duplicate to be obtained.
 Concession of 0.50 % in rate of interest to those who offer minimum 50 % liquid security e.g. NSC,
KVP, FDR, LIC Policy etc. (excluding earmarking of PF balances) as collateral.
 In case the loan is granted to corporate, the vehicle should be used exclusively by the Directors /
Executives of the Company and also not registered as Commercial Vehicle.
 BCC:BR:108:588 dated 05.12.2016-Modificqtion in the guidelines on Rate of lntetest for Home Loons &
Cor Loans for opplicont/s hoving (-1) or 0 Bureou Scores)
POWER OF DEVIATION:
 It has been decided by our Bank to levy the charges for deviations (financial / non financial) @ Rs.
3000/- per deviation with maximum of Rs. 10,000/-.
 Powers of Financial Deviations which have a direct impact on Profit & Loss A/C of Bank shall not be
exercised below the level of BCC. However non financial deviations may be considered by a Regional
head (as per circular No.BCC;RH:103/1242 dt 11.07.2011)

“BARODA PERSONAL LOAN,
We are aware that our Product “Baroda Personal Loan” is a clean advance from security angle. Few other
products viz. Baroda Vaibhav Laxmi, Loan to Pensioners, Loan to Defence Pensioner, Loan against Earnest
Money Deposit , Loan for Consumer Durables and Loan for Laptop / PCs and Baroda Desh Videsh Yatra
Scheme are almost of same nature with little difference.
These Loan Schemes vide Bank’s Circular no. BCC: BR: 101:93 dated 28.03.2009 have been realigned for
operational convenience under the name “BARODA PERSONAL LOAN” as below:
 Baroda Personal Loan
 Baroda Vaibhav Laxmi
 Baroda Loan to Pensioners
 Baroda Loan to Defence Pensioners
 Baroda Loan for Earnest Money Deposit
 Baroda Loan for Consumer Durables
 Baroda Loan for Laptop and PCs
On realignment of Retail Loan products, Bank decided that w.e.f. 01.04.09 there shall be only one product
“Baroda Personal Loan” instead of existing eight different products which shall cover all above mentioned
loans.
Further, Bank has discontinued the product “Baroda Desh Videsh Yatra Loan’ w.e.f. 01.04.09 because of very
poor off-take. However, finance for this purpose may be availed under Baroda Personal Loan Scheme e.g. if a
person requests for loan to travel abroad, his request shall be considered under “Baroda Personal Loan” and
will beclassified under “Baroda Personal Loan” and not under “Desh Videsh Yatra Loan”.
Similarly, if a person requests for booking a flat/plot or house, his request shall be considered under “Baroda
Personal Loan” and not under “Loan for Earnest Money Deposit”. As such ‘Baroda Personal Loan’ covered all
the above mentioned products and can be clubbed only by differentiating interest rate by charging
discount/premium over Base rate depending upon purpose.
However, w.e.f. 01.04.2015, Bank has revised all the basis features of ‘Baroda Loan to Pensioners’ including
increase in loan limit and reduction on rate of interest. As such,Loan to Pensioners to be opened/ reported
separately as ‘Baroda Loan to Pensioners’ in separate scheme code.
BARODA PERSONAL LOAN
As per circular no BCC:BR:108:561 DT 23/11/2016, the scheme of baroda premium personal loan is
discontinued and guidelines are realigned to new personal loan scheme.
PURPOSE:
To meet personal expenses / exigencies related to medical, education, marriage, family / social
functions, payment of taxes or any other family needs etc.Any purpose other than speculative.
ELIGIBILITY:
 Employees of Central / State Govt. / Autonomous Bodies/Public / Joint Sector Undertakings, Public
Limited Co. / MNCs & Educational Institutions – with minimum continous service for 1 year
 Employees of Proprietorship, Partnership firms, Private Limited companies, Trust - with minimum
continous service for 1 year
 Insurance Agents- doing business for minimum last -2- years
 Self Employed Professionals (Doctor, Engineer, Architect, Interior Designers, Tech. and Management
Consultants, Practicing Company secretaries etc) -- with minimum 1 year stable business.
 Self Employed Business persons - with minimum 1 year stable business.
 Staff members are not eligible
 Minimum – 21 years and Age + Repayment period of loan should not exceed retirement age or 60
years which ever is lower for salaried class and 65 years for self employed.
Account Relationship:
 Loan amount upto Rs. 2.00 Lakhs: Satisfactory account relationship with our Bank or any other
Bank for atleast -6- months.
 Loan amount above Rs.2.00 Lakhs: -

6- months.
Trust – Salary account of the employee should be maintained with our Bank for the last -6- months.
 In case of Insurance Agents – The Commission for the minimum last -6- months to be credited to
the account with us.
Loan Limit:
Maximum:
Metro & Urban: Rs. 10 Lakhs
Semi-Urban & Rural: Rs.5 Lakhs
Minimum:
Metro & Urban : Rs. 1 Lakh
Semi-Urban & Rural : Rs.50,000/-
Limit is stipulated based on the classification of the financing branch.
Income Multipliers (Income Criteria):
 GMI less than Rs.75,000/-: 6 times of GMI

 GMI 75,000/- and above: 8 times of GMI
 Subject to maximum ceiling in amount for the scheme.
 For salaried persons: Average of last -3- months GMI to be considered for multiplier.
 For Non- salaried class: GMI for multiplier to be worked out as: Last year’s Gross Annual
Income / 12.
 If any other regular income is declared in the IT return, the same can be considered for
eligibility.
Repayment Capacity (FOIR- Fixed Obligation Income Ratio)

 GMI less than Rs. 75,000 : 40% of GMI
 GMI Rs. 75,000 and above but less than Rs.2,00,000: 50% of GMI
 GMI Rs. 2,00,000 and above : 60% of GMI

 The GMI considered for income multiplier to be taken for FOIR also,Deductions to be
considered from the last Month GMI (for salaried persons).
 For non-salaried class deduction to be worked out as: Last year’s total deductions / 12 will be
monthly deduction
Bureau Score Cut-off:

 Minimum cut- off on CIBIL score will be 725.
 If Cut off CIBIL score 675 to 724: Deviation decision with RMCC.
 If Cut off CIBIL score less than 675: Deviation decision with ZOCC, the applicable ROI will be
with maximum spread as per the product.
Rate of interest:
Interest rates based on CIBIL Bureau score:
(1) ROI for existing customers having account relationship of minimum -6- months:
800 and above 1 year MCLR + Strategic Premium + 3.00%

675 to 724** 1 year MCLR + Strategic Premium + 6.00%
( -1) or (0) 1 year MCLR+ Strategic Premium + 6.00%
**with deviation
Other cases: i.e for applicants having account relationship with other Bank at least for -6- months:
800 and above 1 year MCLR + Strategic Premium + 5.00%

675 to 724** 1 year MCLR + Strategic Premium + 8.00%
( -1) or (0) 1 year MCLR+ Strategic Premium + 8.00%
**with deviation
Repayment Period: Maximum 48 months.
Prepayment Charges:
Pre-closure within-6- months: 4% on the outstanding balance as per original repayment / EMI schedule
Pre-closure after 6 months: Nil

2% of Loan amount Minimum: Rs.1000/- Maximum: Rs.10, 000/- + Service Tax
Risk rating:
 Credit rating will be done as per existing guidelines under Clean Loan Rating Model and Loan shall
not be extended to the borrowers getting scores below cut-off mark.
 Cut off Score is 30 & Investment Grade is CL 7 & above.

LOAN TO PENSIONERS
Target Group:
Regular Pensioners,
Eligible Borrowers:
 Pensioners/ family pensioners drawing pension through our Bank’s branches.
 Pensioners who are getting their pension disbursed through Treasury/DPDO (Defence Pension
Disbursing
 Office) directly to the credit of their savings accounts with our branches.
 Pensioners/ Family Pensioners of our Bank.
 Family Pensioner, Spouse authorised to receive pension after the death of the pensioner.
 Pensioner should be drawing pension through the branch for at least last -3- months and his
account should have been conducted satisfactorily i.e. no return of cheques for financial reasons.
Age:
 Minimum; 21 Years
 Maximum: 75 years
Loan Limit:
 18 times of monthly pension with a ceiling of
 For Regular Pensioners:
 age upto 70 years : Rs.8.00 Lacs
 age above 70 years: Rs.5.00 Lacs
 For Family pensioner:

 age upto 70 years : Rs.3.00 Lacs
 age above 70 years : Rs.1.50 Lacs
Total monthly deductions including proposed EMI and EMIs of existing loans (if any) should not exceed 60%
of monthly pension.
Repayment Period:
 Regular Pensioners/Family Pensioners:
 For age upto 70 years : 60 months
 For age above 70 years : 36 months
Rate of interest: MCLR + Strategic Premium + 2.00%
For Retired Bank of Baroda/ their Family pensioners: MCLR + Strategic Premium
Unified Processing Charges: Pensioners / Family Pensioners of our Bank: NIL

Others: Rs.1,000/-

Risk Rating:
Credit rating will be done as per existing guidelines under Clean Loan Rating Model and Loan
shall not be extended to the borrowers getting scores below cut-off mark. Cut off Score is 30 &
Investment Grade is CL 7 & above.
Loan for Earnest Money Deposit: The scheme is available for Business persons also i.e. proprietors,
partners of Partnership firms or Directors of Pvt. Ltd. Co. in addition to above class of persons.
8 times of gross monthly income or 90% of application money or Max Rs.5.00 Lac whichever is lower.
Loan for Consumer Durable: 5 times of gross monthly income Max. Rs1.00 Lac whichever is lower
Loan for Laptop /PC: 5 times of gross monthly income Max. Rs1.00 Lac which ever is lower
REPAYMENT:
Maximum 36 EMIs commencing one month after disbursement except:

Loan to Consumer durables : 60 months
Loan for Laptop / PCs : 60 months
Loan for Earnest Money Deposits : by lump sum payment in 6 months
DOCUMENTATION:
D. P. Note / Letter of Installment with acceleration clause / Letter of undertaking from borrower -
employer / General Form of Guarantee / Hypothecation of Consumer Goods – Laptop purchased out of
loan amount, if any / In case of Loan for Earnest Money Deposits – power of attorney to collect and
adjust refund amount in loan and stamped undertaking to create EM after execution of sale deed.
SECURITY:
 A copy of undertaking from employee ( for salaried persons ) authorizing the employer to deduct from
the salary monthly loan installment and remit the same to the bank for the credit of loan account and
also to deduct from the terminal benefits, the outstanding loan amount with interest.
 A copy of the said undertaking duly acknowledged by the employer has to be kept on branch records.
 If the employer is not ready to acknowledge the undertaking given by the employee, branch should
obtain 12 Post Dated Cheques from customer drawn on his account with prescribed undertaking.
 Third party guarantee, if possible.
LENDING POWERS:
Where the assets are created out of Bank Loan and no tangible collateral securities are available, DLPs
of clean loans shall be exercised by the sanctioning authority.
OTHER CONDITIONS:
 Prior account relationship not necessary. However, account statement for last 6 months (account either
with our bank or with other bank) to be studied to satisfy that the conduct of account is satisfactory
and a note should be made in the proposal.
 Interest rate prevailing on the date of disbursement of the term loan will be the applicable rate during
currency of the loan and will not undergo any change in BPLR from time to time.
 Penal interest @ 2 % p.a. for non payment / delayed payment on overdue amount.

 In case the borrower is transferred and our bank has a branch at the place where the borrower is
transferred, the outstanding loan amount may be transferred to that branch as per the bank’s extant
guidelines for transfer of accounts.
 Before sanction of loan for Earnest Money Deposit, branch to ensure that proposed borrower is eligible
for financing the Housing Loan project under the Home Loan guidelines for which he is bidding and is
also agreeable to avail Housing loan from us.
 Total deductions should not exceed 60% of gross salary per month except in case of loan for Earnest
Money Deposit where home loan guidelines shall apply.
 Credit rating shall be carried out as per extant guidelines and decisions will be taken accordingly.

BARODA LOAN TO DOCTORS
NATURE OF FACILITY: Demand / Term Loan and / or Overdraft
PURPOSE:
 Development of clinic/ Clinic-cum-residence, Nursing Home, Pathological Laboratory.
 Purchase of medical / diagnostic equipments.
 Setting up of operation theatre.
 Purchase of car, ambulance, etc.
 Purchase of office equipments viz. computers, fax, air-conditioners and furniture etc.
 Expansion/renovation/modernization of existing premises/Clinic/Nursing Home.
 Working Capital requirement including stock of medicines.
LIMIT:
 Minimum: Rs. 50.000/-
 Maximum: Rural/Semi-Urban: Rs. 15 lacs (sub limit for W/C Rs. 1 lac)
 Urban/Metro: Rs. 50 lacs (sub limit for W/C Rs. 3 lac)
 For a loan amount of Rs. 5 lacs and above, the doctor / unit should have been established for a
minimum period of 3 years. However, in deserving cases, Zonal Authority can relax this condition.
ELIGIBILITY:
Individuals, Proprietorship / Partnership firms, Private Limited companies engaged in providing medical
/ pathological / diagnostic services to the society.
Applicants / Promoters should have recognized qualification in any branch of medical science like MBBS
/ BAMS / BDS or any degree / course in physiotherapy / radiology etc.
In case of Private Limited Company, the object clause should be verified for having the objective of
providing medical services to the community.
Rate of Interest:
 Up to 2.00 Lacs : MCLR + Strategic Premium + 3.00%
 Above 2.00 Lacs : MCLR + Strategic Premium + 2.50%
PENAL INTEREST: 2% p.a. on overdue amount for delayed period.
MARGIN:
Loans up to Rs. 5 lacs (where no collateral is stipulated): 25%.
All other cases: 15% of the cost of project / equipment.
Working Capital: NIL
ASSESSMENT OF CREDIT LIMIT:

 Development of clinic / Clinic-cum-residence, Nursing Home, Pathological Laboratory / Purchase
of medical / diagnostic equipments.
 Need based finance as per the project, subject to economic viability of the same and generation
of sufficient income to service the repayment obligations.
 Working Capital: 10% of projected gross income.

 While assessing credit requirement, the repaying capacity of the prospective borrower based on
expected income would be considered.
SECURITY:
 Upto Rs. 5 lacs – NIL
 Hypothecation of assets created out of the loan.
 Guarantee of a third party having adequate means i.e. having minimum net worth equal to loan
amount, shall be obtained.
 Above Rs. 5 lacs:

 Tangible collateral Securities in the form of mortgage of land (excluding agricultural land) and
building, AND/OR Pledge of NSCs, Govt. Bonds, Bank’s FDR / assignment of life insurance
policies etc.
 Property to be mortgaged, NSCs, Government Bonds, our Bank,s Term Deposits may be in the
personal name of either Borrower, Proprietor, Partner, Director or their Close relatives (viz.
Spouse, parents, brother, sister, son, daughter) who should stand as guarantor/ co-borrower.
 Life insurance policies standing in the name of the borrower/proprietor/partner director only.
 Branch to obtain a valuation is to be done once in three years.
SECURITY MARGIN:
 40% in case of immovable property. (The assets created out of the bank credit may also be
considered for the security.(BCC/BR/98/8 dated 07.01.2006)
 15% on value of NSCs/KVPs/Govt. Bonds / RBI Relief Bonds/ surrender value of LIC policies etc.
 10% on Bank’s FDRs.
PERIOD:
 Overdraft (for Working Capital): 12 months subject to annual review.
 For renewal of the account, declaration of annual income shall be obtained and kept on record.
Stock statement shall be obtained once a year as of last of February every year.
 Demand Loan / Term Loan: 60 months including moratorium period of 6 months.
 The amount shall be repayable in EMI commencing after one month of completion of project/
maximum moratorium period shall be recovered as and when debited in the account.
 DSCR of 1.25 may be accepted for ensuring repayment capacity in case of demand/ term loan.
DOCUMENTS:
In case of Term / Demand Loan:
1. D.P. Note (as per the constitution of the borrower)
2. Letter of installment with acceleration clause.
3. Hypothecation of assets i. e. furniture / office equipment / medical / pathological
equipment’s etc. purchased out of bank loan.
4. Hypothecation of vehicle in case of finance for Ambulance / any other vehicle.
5. Authority to make payment directly to supplier, wherever applicable.
6. Blank TTO Form (in case of finance for vehicle.)
In case of Overdraft:
1. D.P. Note (as per constitution of Borrower)
2. Letter of continuing security.
General:
1. Draft letter of undertaking.
2. Pledge / assignment / mortgage (whichever is applicable) of collateral security.
3. General form of Guarantee, wherever applicable.
4. Undertaking to deal exclusively with our Bank.
5. Other documents as per constitution of the borrower and terms and conditions of the
sanction.
DISBURSEMENT OF LOAN FOR SETTING UP OF CLINIC, PURCHASE OF VEHICLE / EQUIPMENT /

FURNITURE etc.:
 Outright purchase of premises for clinic/ nursing home, ready for possession- Disbursement in one
installment directly to the seller.
 Construction of clinic / house/ laboratory/ drug store/ nursing home etc.-three to four stages after
physical verification depending upon the progress of construction.
 Payment can be made either to the builder directly or to the borrower subject to verification of bills/
money receipts/ invoices etc. or certificate issued by approved Valuer / Architect certifying the progress
of the work and the estimated expenditure having incurred therefore, as the case may be.
 For vehicle / equipment/ machineries – directly to suppliers, wherever possible.
CLASSIFICATION OF ADVANCES UNDER PRIORITY SECTOR:

The advances under the product may be classified and reported under Priority Sector as per norms/
guidelines of Bank/ Reserve Bank of India from time to time.
OTHER CONDITIONS:
1. Borrowers to route the income through their Overdraft/ Current A/c (In case of loan) with the
branch.
2. If Government Bonds/ National Saving Certificates / Life Insurance Policies / Bank Deposits are
offered as security, bank’s extant guidelines/norms to be followed for noting / registering the lien /
assignment.
3. Borrowers will not be considered for financial assistance both under this scheme as well as under
our usual scheme of financing Professional & Self Employed persons.
4. However, existing loan accounts of Self Employed & Professional persons who are eligible under
this scheme can have the facilities transferred to this scheme.
5. Inspection of securities to be carried out once in a year and inspection report is to be kept on
record.
6. Pre-sanction inspection to be conducted and report to be kept on record.
7. Obtaining of financial statements i.e. Balance Sheet and profit & Loss account is dispensed with.
However, to determine eligible loan amount declarations about annual sales/ income supported by
Returns / Assessment of Sales Tax / Service Tax/ Income tax etc. be obtained and kept on record.
8. Where security is in the form of our Bank’s FDR, the same should be appropriated in case of default
in servicing interest for one quarter and account getting classified as NPA.
9. Branch to endeavor to display bank’s name as financier from publicity angle.

INSURANCE:
 Vehicles / Property mortgaged should be got insured as per bank’s norms.
 Obtaining Insurance against the immovable assets created out of bank loan shall also be a
condition for sanction of the facility. However, branches may counsel their borrowers to have
their machinery/ equipment/ inventory insured at their cost, in their own interest.
OTHER PROVISIONS:
 Request of Doctors for car and clean loans may be considered under our existing products i.e.
Baroda
 Car Loan, Baroda personal, as per the terms and condition of the products.
 A doctor may avail more than one advance (i.e. car loan, clean loan including loan under this
product. However, while considering car / clean loan it should be ensured that total deductions
including the proposed EMI should not exceed 70% of gross monthly income.

Baroda Loan against Securities
Loan against NSC:
PURPOSE:
 For Productive purpose
 For meeting the contingency needs of personal nature.
ELIGIBILITY:
Must be an Indian resident

Age - 21 years and above
LIMIT:
Minimum Amount:
 Demand Loan – Rs. 3,000/-
 Overdraft - Rs. 20,000/-
Maximum Amount:
 For Public - No ceiling
 For Staff - 5 times of gross salary
RATE OF INTEREST:
 Loan: MCLR + Strategic Premium + 3.50% or 0.50% over NSC / KVP rate, whichever is higher
 Over draft: MCLR + Strategic Premium + 4.00% or 0.75% over NSC / KVP, whichever is higher
 In case of staff - 0.5% over NSC rate
 Weighted average method is applied if NSCs on different interest rates, in case of consolidated
limit to one borrower against securities where interest rates are different.
MARGIN:
Public:
 15 % of face value of NSC, if residual maturity period is less than 3 years.
 20 % of face value of NSC, if residual maturity period is 3 years and above.
Staff:
 10 % of face value
PROCESSING CHARGES:
Rs.100/- flat + out of pocket expenses and actual conveyance charges + service tax, Nil for staff.
REPAYMENT PERIOD:
Loan:
 Option I – Repayment in maximum 35 EMIs or within the maturity period, whichever is less.
 Option II – Repayment of principal with interest, at the time of maturity out of proceeds of the
instrument subject to a provision that in such cases the margin would be minimum 20 %.

Overdraft:
 Till maturity of the security. In case of overdraft, if the credit turnover in the account in the
preceding month is not adequate to cover the interest debited, and then interest debited in
the account is to be recovered separately Subject to review annually
SECURITY:
 Pledge of duly discharged NSCs
 Lien on NSCs to be noted with the issuing Post Offices.
OTHER CONDITIONS:
 NSCs of only 8th series are in vogue (since 8.5.1989).
 Memorandum for granting / recommending advance against Certificates should be prepared in the
prescribed format
 Advance to third party is not permitted
 Advance should be disbursed only after getting the Bank’s lien noted.
 A representative of the bank to be sent to Post Office for this purpose and the borrower must not
be entrusted for this purpose in any circumstances.
 While fixing rate of interest weighted average method is to be applied in case of consolidated limit
to one borrower against securities where interest rates are different
LOAN AGAINST KVP
PURPOSE:
ELIGIBILITY:
 Must be an Indian resident
 Age - 21 years and above
LIMIT:
Minimum Amount :
Maximum Amount:
 Up to Rs. 1.00 lac by Branch Head & above Rs. 1.00 lac by Regional Head.

RATE OF INTEREST:
 Loan: MCLR + Strategic Premium + 3.50% or 0.50% over KVP rate , whichever is higher
 Over draft: MCLR + Strategic Premium + 4.00% or 0.75% over KVP rate whichever is higher
 Weighted average method is to be applied in case of consolidated limit to one borrower
against securities where interest rates are different.
MARGIN:
Public :
 15 % of face value of KVP, if residual maturity period is less than 3 years.
 20 % of face value of KVP, if residual maturity period is 3 years and above.
Staff:
 10 % of face value
PROCESSING CHARGES:
Rs. 100/- flat + out of pocket expenses and actual conveyance charges + service tax.
REPAYMENT PERIOD:
Loan :
instrument subject to a provision that in such cases the margin would be minimum 20 %.
Overdraft :
preceding month is not adequate to cover the interest debited, and then interest debited in the
account is to be recovered separately subject to review annually
SECURITY:
 Pledge of duly discharged KVPs

 Lien on KVPs to be noted with the issuing Post Offices.
OTHER CONDITIONS:
 Memorandum for granting / recommending advance against Certificates should be prepared in the
prescribed format.
 Advance to third party is not permitted
 Advance should be disbursed only after getting the Bank’s lien noted.
 A representative of the bank to be sent to Post Office for this purpose and the borrower must not be
entrusted for this purpose in any circumstances.
 While fixing rate of interest weighted average method is to be applied in case of consolidated limit to
one borrower against securities where interest rates are different.

LOAN AGAINST LIFE INSURANCE POLICIES
PURPOSE:
ELIGIBILITY:
 Must be an Indian resident
LIMIT:
Minimum Amount :
Maximum Amount : No ceiling
RATE OF INTEREST:
 LOAN: MCLR + Strategic Premium + 3.50%
 OVER DRAFT: MCLR + Strategic Premium + 4.00%
 Weighted average method is to be applied in case of consolidated limit to one borrower against
securities whwere interest rates are different.
MARGIN:
 15 % of surrender value, if the insurance policy is maturing within a period of less than 3 years.
 20 % of surrender value, if the residual maturity period is 3 years and above.
PROCESSING CHARGES:
Rs. 100/- flat + out of pocket expenses and actual conveyance charges + service tax, Nil for staff
REPAYMENT PERIOD:
 LOAN: Repayment in maximum of 60 EMIs or within the maturity period whichever is less
subject to availability of stipulated margin.
 OVERDRAFT : Till maturity of the security. In case of overdraft, if the credit turnover in the
account in the preceding month is not adequate to cover the interest debited, and then interest
debited in the account is to be recovered separately. Reviewed annually.
SECURITY:
 Assignment of Life Insurance Policy, in force for more than 3 years, in Bank’s favour.
 Standing instructions from the borrower to pay the premium on the policy, as and when they fall due
to the debit of his savings bank / current / overdraft A/C.
 The branch to obtain last premium paid receipt and keep on record.
 Policies which restrict its assignment should not be accepted.

Other conditions:
 Facility may be sanctioned by the sanctioning authority up to fund based lending powers for
sanctioning advances against pledge of Govt. securities on merits, taking into account the purpose of
advance and repayment capacity of the borrower.
 Life Insurance Policies issued by private insurance companies can also be accepted as security for
considering advances under this scheme.
 Advance to third party is not permitted.
 Endowment policies are preferred.Age of the policy holder should have been admitted in the body of
the policy.Policy should be in force for more than three years.
 Policies which are not to be accepted for advance:
 Whole Life Policies.
 Policies issued under Married Women’s Property Act, 1874, wherein nomination will be automatically
cancelled by a subsequent transfer or assignment.
 Policies assigned to a minor.
LOAN AGAINST RELIEF / GOVT. BONDS
PURPOSE:
 For meeting the contingency needs of personal nature excluding speculative purpose.
ELIGIBILITY:
 Must be a Indian resident
LIMIT:
Minimum Amount :
Maximum Amount : No ceiling
RATE OF INTEREST:
 LOAN: MCLR + Strategic Premium + 3.50% with monthly rests.
 OVER DRAFT: MCLR + Strategic Premium + 4.00% with monthly rests.
 Weighted average method is to be applied in case of consolidated limit to one borrower against
securities where interest rates are different.
MARGIN:
 15 % of face value, if residual maturity period of Bond is less than 3 years.
 20 % of face value, if the residual maturity period of Bond is 3 years and above.
PROCESSING CHARGES:
Rs. 100/- flat + out of pocket expenses and actual conveyance charges + service tax, staff - Nil
REPAYMENT PERIOD:
Loan :
instrument subject to a provision that in such cases the margin would be minimum 20%.
Overdraft :
preceding month is not adequate to cover the interest debited, and then interest debited in the
account is to be recovered separately. Reviewed annually
SECURITY:
 Pledge of relief bond.
 Blank transfer deed.
 Notice to the Public Debt Office of RBI / Designated bank who issues Bonds.
OTHER CONDITIONS:
 Facility may be sanctioned by the sanctioning authority up to fund based lending powers for
sanctioning advances against pledge of Govt. securities on merits, taking into account the purpose
of advance and repayment capacity of the borrower.
 Advance to third party is not permitted.
 Advances should be made against Bonds which are eligible for bank finances, & not restricted from
availing bank finance such as 6.5% RBI Bond 2003, 7% savings Bond 2002 etc.
3000/- per deviation with maximum of Rs. 10,000/-

BARODA SALARY ADVANTAGE SAVINGS ACCOUNT
PRODUCT NATURE:
Savings Bank Deposit within built feature of OD as per eligibility.
TARGET GROUP: Salary Accounts
MINIMUM:
All branches irrespective of area classification can open accounts with zero balance. There is no
minimum balance requirement in the account and as such no service charges shall be levied towards
this.
MAXIMUM AMOUNT:
There shall be no ceiling on the amount to be deposited and credit balance in the account.
SPECIAL FEATURES OF THE PRODUCT:

The branch SHALL offer Overdraft facility (Clean/unsecured) to employees who fulfill the eligibility
criteria to meet out their emergent short-term family needs.
ELIGIBILITY CRITERIA:
 Regular Employees of State / Central Government, Public Sector Undertakings, Semi government
Organization, State / Central Govt. Corporations, Urban Development Authorities, Educational
Institutions, Universities, MNCs, reputed Public Ltd Companies with minimum one year service with the
organization.
 Employees of Private Limited Companies may be considered by Regional Authorities on selective basis
after ascertaining their standing and banking relationship with us, if any.
 Minimum age of 21 years.
 Minimum take home Salary should not be less than Rs. 5000/-.
 Maintaining satisfactorily conducted salary account with the Bank at least for three months.
OVERDRAFT LIMIT:
90 % of net salary of average of last three months subject to Maximum of Rs. 1 lac.
INTEREST RATE & PROCEDURE FOR APPLICATION:

On Credit Balance: As per savings bank account rules @ 4.00 % half yearly wef 01/04/2010
On debit Balance : MCLR +SP+ 5.5%
PERIOD: 12 months, subject to annual review.
SECURITY: Third party guarantee shall be obtained. Cross guarantee may be accepted.
DOCUMENTS:
 D.P. Note.
 A single document shall be obtained from the customer
 General form of Guarantee.

DOCUMENTS TO BE SUBMITTED BY APPLICANT:
 Application Form.
 Employer’s Certificate (Form No. 135 and 117-A are dispensed with.)
LIQUIDATION OF OVERDRAFT: The account is to be brought into credit once in 60 days.
OTHER CONDITIONS:
 The facility is to be offered to the employees of such organizations, which are financially sound and
paying the salary to its employees regularly.
 The Conduct of the salary account and other loan accounts is to be satisfactory.
 Employee should not be under suspension.
 After sanction of facility, the Branch to monitor the accounts by verifying the credit of salary in the
accounts each month.
 All overdrafts in such savings bank account shall be reported in the weekly FORM 153 along with
balance in other overdraft accounts, as being done in the case of TODs/ODs in current accounts.
DISCRETIONARY LENDING POWERS:

The branches may consider the proposals falling within their lending powers for unsecured advance as
per grade/scale of the Branch Head. Any proposal beyond their power shall be referred to next
authority.
SANCTION OF FACILITY:
 The branch should scan salary savings bank accounts wherever the salary is being credited
since last three months and the conduct of the account is satisfactory. The Branch Manager
should satisfy himself about the financial soundness of the employer before considering the
facility.
 No detailed sanction of the proposal is required to be prepared. Form No. 117-A on
borrower/guarantor need not be prepared. Simplified sanction memo is to be used. Reporting
for PSR purpose to be done as usual.
OTHER SALIENT FEATURES:

 Other rules governing the Savings Bank a/c will also be applicable to such account mutaitis
mutandis.
 Cheque-books shall be issued free of charges for routine requirement. However, in case of bulk
requirements such as giving PDCs for loans availed/to be availed from other banks / institutions /
Finance Companies, normal cheque book charges shall be levied.
 Staff members shall not be eligible to avail facility under the product.

Loan against Bank’s own Deposits/ ODBOD/LABOD
PURPOSE:
 No Specific Purpose defined.
 For meeting the contingency needs of excluding speculative purpose.
ELIGIBILITY: All Deposit Holders of Short, Fixed, Recurring & Yatha Shakti Jama Yojna
LIMIT: Max. 95% of Value of Deposit, subject to DLP.
RATE OF INTEREST:
Particulars Revised Rate of Interest

w.e.f. 01.08.2016
For Public/ Senior Citizen/Staff (against 1.00% over Interest Rate on Fixed
Resident Deposits) Deposit
Advance Against the securities of third 1.00% over Deposit rate or
party FDRs (against Resident Deposits)- MCLR + Strategic Premium +
0.25% whichever is higher.
MARGIN: 5 % of the Deposit value Minimum.
PROCESSING CHARGES: NIL
REPAYMENT PERIOD:
 Loan: Loan is Repayable in Single Installment I.e. on due date of Deposit.
 Overdraft: Till maturity of the security. In case of overdraft, if the credit turnover in the account in
the preceding month is not adequate to cover the interest debited, and then interest debited in the
account is to be recovered separately.
SECURITY: Lien of Deposit Receipt, Pass Book.
DISCRETIONARY LENDING POWERS: - Max. 95% of Deposit value or DLP whichever is less
DGM AGM CM S.Mgr. Mgr. Officer
SMGS-VI SMGS-V SMGS-IV MMGS-III MMGS-II JMGS-I
Particulars
Full Full 250 200 62.50 25.00
Advance against Bank’s own
Powers Powers (250) (200) (62.50) (25.00)
Deposits
Discretionary Lending Powers of Retail lending:

The detail guidelines are available in BCC: BR: 102:350 December 22, 2010, for DLPs under retail lending.

Pre Approved Credit Limit (Home Loan, Car laon & Personal loan) for liability customers
As per circular no BCC: BR: 108: 158 dt 1st Dec 2016 this new scheme has been launched.
Pre Approved Credit Limits: (PAL)

 A pre approved Home / Car / Personal loan is usually offered by banks to people who have a clean
track record of loan repayment history or have a good account relationship with the Bank.
 The liability customer of the Bank who will qualify for pre approved limits depends primarily on his /
her banking relationship with the bank and conduct of the account on various customer related as well
as transaction related pre defined parameters.
 As per the model developed for Pre Approved limits for liability customers of our Bank, the Pre-
approved limits will be assigned to liability customers based on parameters pertaining to transaction
behavior and balance maintenance. The limits are assigned for three asset products viz Home Loans,
Car Loans and Personal Loans.
General Criteria for Pre Approved Limits:
Constitution: Constitution of the customer should be (Individual)
Age: Age of the applicant should be 25 to 50 years.
Maximum Limits:
 Home Loan : Rs. 1.00 Crores
 Car Loan: Rs.10.00 Lakhs
 Personal Loan: Rs. 5.00 Lakhs
Repayment Period:
Maximum upto 60 years of age of the applicant. This is age criteria need not be applicable for co-
applicant, if any, since we are not considering the income of co-applicant for pre approved limit for
Home Loan.
CIBIL Report:
Though the pre approved limits are assigned after scrubbing the CIBIL scores of the selected
customers through backend process, Branch/SMS should pull CIBIL report at the time of sanction &
match corresponding address and any other adverse features /history.
CIBIL Score:
Minimum CIBIL score of the applicant should be 725 (in CIBIL version 1),(-1) or (0) CIBIL scores can also be
accepted. (No deviation to be allowed for considering CIBIL score of less than 725 under Pre approved limit).
Scheme Codes in Finacle:

Pre Approved Limit (Home Loan): LA192
Pre Approved Limit (Car Loan): LA193
Pre Approved Limit (Personal Loan: LA194

HUMAN RESOURCES (HR)
HR Audit:
HR Audit is a structured mechanism to review the compliance of various service rules/ regulations governing
Human resources in various grade/ scales. It also monitors compliance of statutory labour requirements.
Moreover, verification/ scrutiny of sundry charges & P/L expenses ensures stoppage of misutilisation of funds.
HR Audit also enforces discipline and punctuality at the Branch/ Office level.
An HR audit is like an annual health check-up. It plays a vital role in instilling a sense of confidence in
management of Human Resources related issues in the Bank. HR Audit is a cost-effective way to reduce risk of
liability and realize potential cost savings incurred in misinterpretation of rules/ regulations.
PASAS
In light of our objective of moving towards Total Performance, we need to set in place an efficient
performance appraisal system for all Award Staff. Accordingly, a Performance Appraisal System for Award Staff
has been formulated and introduced.
Objectives for introducing PASAS are as Under:

 To promote a performance oriented culture
 To identify good performers.
 To identify Talent amongst employees
 To improve upon strengths and areas of improvement
 To identify Training Needs of employees
 To match job roles of employees with aptitude of individuals during Job Rotation exercise
 To identify employees for proper placements
 Effective utilisation of aptitude and potential.
The following staffs are covered under the “PASAS”:

 All Clerical Staff (including those having combined designations and also all those drawing any
Special Pay)
 All Subordinate Staff (including staff having combined designations or drawing any Special Pay or
Full Time/ Part Time Sweepers)
Performance Appraisal Process : The performance appraisal shall be 3-tiered :

1. Self Appraisal by the individual employee (This is optional)
2. First review by Reviewing Authority (RA).
3. Second and Final Review by Final Reviewing Authority (FRA).
It is now imperative that each one of us strives to move towards Total Performance. Performance of each and
every employee is extremely significant and, therefore PASAS deserves fullest attention.
Baroda Sujhav:
 In the context of technology driven business changes, Staff Suggestions Scheme was reviewed and
revised Scheme titled as “Baroda Sujhav “ is implemented from July 2004.The Scheme is applicable to
all employees including regular part time employees drawing scale wages. The objective of the Scheme

is to encourage the generation of ideas amongst staff members to offer innovative suggestions which
are in tune with Bank’s priorities and concerns and Customer Service-its effectiveness.
 The Scheme also encourages staff members to give their suggestions on the bank’s Business
transformation Process. The Baroda Sujhav Committee is constituted for considering awards/prizes
under the Scheme.
 Quarterly Awards includes first cash prize of Rs.10000, Second cash prize of Rs.5000 and third cash
prize of Rs.3000/- , all along with Certificate of Appreciation. Apart from quarterly awards, there is
annual prize of gold coin with bank’s emblem and concerned employees name engraved on it along
with certificate of Appreciation for the most outstanding suggestion of the year.
PARAMARSH:
 It is the endeavor of the Bank to address employees’ concerns on pro-active basis. Bank has provided
several welfare measures for employees and their dependents, which take care of variety of exigencies.
 Growing complexities of life, more particularly in big cities and metros are adding pressures on
personal life of people, which has adverse impact on his family, and also the work life.
 Sometimes many people develop habits like excessive smoking, gambling, drinking or any other habit
that deviates them from the mainstream of social life.
 The organizational transformation envisages providing not only a healthy work-life but also a satisfying
personal and social life to employees.
 PARAMARSH – the psychological counseling centre where services of a professional counselor would be
available at the centre and employees can avail counseling service free of charge, for resolving their
psychological problems / worries which may be disturbing their personal life.
 Initially services are available to all employees of BCC, Mumbai and to all employees of all other
branches and offices in Mumbai.
SAMPARK:
 SOS Helpline for employees. Under this Help line, employees who are in distress can directly approach
CMD for immediate relief. Matters requiring urgent attention like life and death issues, medical
emergency, overwhelming circumstances in the personal life of employees, hardships due to natural
calamities etc. are dealt on priority and relief is provided, where required.
 To take care of the Bank’s requirement in different specialized areas like IT, Treasury, HR, Marketing &
Sales, Credit, International Business etc.
 A New Induction cum Grooming Programme for Young Officers
 With the objective of developing future managers and leaders and for deployment in key areas, a re-
vamped Officers’ Induction cum Grooming Programme is launched. It is designated as On Boarding
programme for newly recruited officers( Generalist) with a combination of classroom training as well as
on -the-job training.
 Fast Track Career Growth Opportunities for Executives and Officers
In order to provide fast track growth opportunities to aspiring Executives and Officers, promotional
opportunities have been provided.

HRnes:
Bank of Baroda is a pioneer in the banking industry in establishing professional HR systems and
effectively harnessing it to the advantage of the organization as well as its people. "hrnes" covers the
entire gamut of human resources management function in the Bank currently being performed and
also includes many new sub-functions.
Objectives of HRNes:
 To put a cost effective and time saving (through leveraging of technology) system by creating a Central
Database which widely facilitates decision making related to almost all major HR areas
 To automate manual HR Processes like Roster, Pay Fixation, Seniority, Calculation of salary, PF and
loan deductions.
 To overcome limitations of Manual System.
 To facilitate Uniform application of rules.
 Plugging Revenue Leakage.
 To provide functionality of self Service.
 To facilitate online applications for request transfer, grievance redressal, promotions, selection, asset
liability statement, income tax declaration, overseas assignment, faculty selection etc.
 To monitor HR processes through alerts.
 It is a centralized web-enabled package with global data, at central server; Utilization of single
database for integrated decision making; The Central core of HR data would bring data authenticity,
real time information flow and would remove data multiplicity / duplication and would ultimately
improve quality of HR administration for business and HR people.
 The system comprises of four broad modules encompassing different functions:
1. Oracle Core HR module covering all current HR processes in the Bank from Recruitment to
Retirement;
2. Fluous Payroll module covering Salary, payments of various benefits, perks, welfare schemes,
terminal benefits, leave, Loans etc.
3. Oracle Learning Management module which includes training administration & e-learning
4. Employee Self-Service Module
ANUBHUTI:
It is our employee feeling pride and loyalty whle working for the bank which enables the bank to be a great
institution and this energy and passion get converted into growth and development of the institution. This
programme is designed for the better engagement of employee with the institution. To develop the same, five
initiatives have been taken as under (Circular No BCC_BR_108_331 dated 20 july 2016):
1. Employee of the month
2. Spot recognition-creating WoW moment
3. Zero Hour (Fun Hour) at branches/offices
4. Cumpulsory local community service/Social activities by employee
5. Anubhuti Workshop

BENEFITS TO THE EMPLOYEES:
 Taking HR nearer to employees;
 Transparency in HR administration;
 Speedier HR responsiveness to employee-related issues;
 Employees can view their own personal data, salary slip, IT calculation, online application for
leave, LFC, promotions & other HR processes etc.;
 Accurate calculation of pay components, fixation of pay, settlement of claims & other benefits,
perks etc.;
 Speedier processing of benefits to employees through the system;
 Can support development and training activities;
 Can develop competency framework;
 Can develop profiles of high performing individuals;
 Learning opportunities can be at their place and pace and managed more easily through e-
learning so as to propel learning activities of the employees;
 Employees can participate in online tests for their promotion/overseas selection etc, Can
eliminate redundant data entry cycles & can improve data accuracy and immediacy
Annual Performance Appraisal Review:
As per Govt. of India directives, for adoption of uniform employee appraisal practices across the
banking industry, our Employee Performance Management System (EPMS) has been replaced by
Annual Performance Appraisal Review (APAR) from financial year 2011-12.
Three authorities are there in this system- Reporting, Reviewing & Accepting Authority.
 Reporting Authority should be minimum one Scale higher than the Appraisee & Reviewing Authority
should be minimum one Scale higher than the Reporting Authority .Accepting authority should be
one grade above the reviewing Authority.
 Place for self appraisal is there.
 Training need for self development of appraisee to be mentioned.
 On submission of APR form to concerned reporting authority, an acknowledgment copy is being
given to reviewee.
 Each Appraisee is required to submit his/her completed form to Reporting Authority within 15 days
from the close of period of review, i.e latest by 15th April.
 Reviewing authority to complete the review within 45 days from the close of the period of review,
i.e latest by 15th of May & Accepting Authority by 30th May.

UDAAN – Developing Leaders for the future:
 ‘Udaan’ is a symbolic of the Bank’s aspiration to think big, aspire big, fly high and reach new
heights in its quest for excellence in the Banking arena. The objective of this programme is to
enable participants to explore and redefine their leadership potential and equip them with the
necessary capabilities to deal with emerging business challenges.
 The programme covers two main categories of leaders in the Bank today – the Branch heads of all
Urban and Metro Branches and all AGMs / DGMs who are not due for superannuation very soon.
 The methodology for the programme is based on a ‘field and forum’ approach wherein the
participants are required to attend classroom sessions on various aspect of leadership and apply
the acquired learning to real business situation in the field.
 The programme focuses on the three critical elements of leadership and different learning
objectives have been structured around these three themes, one month being devoted to each
theme in the core three month programme. The three elements are Leading Self, Leading Others
and Leading Business.
Opening of Baroda-Manipal School of Banking: This is to help in getting trained manpower for the Bank.
 Baroda - Manipal School of Banking has been set up jointly by Bank of Baroda and Manipal group. The
school has been set up to first train prospective candidates in Banking and Finance before their
embarking on a Banking career with Bank of Baroda. The students are selected through a rigorous
selection process and given a systematic training in various areas of Banking and management
disciplines in order to make them ready Bankers by the time they finish the programme.
 The thrust of the training is to impart functional knowledge on general management and specialized
knowledge on Banking related topics and subjects. Participants are put through a rigorous on-campus
curriculum spread over 9 months and 3 trimesters which emphasizes on application of knowledge and
overall development of personality. Training at the school will be supplemented with practical training
in Various Branches of Bank of Baroda through a focused 3 - month internship period.
HR helpline for employees:
To provide a quick resolution or replies to their issues/queries ans also looking at the trend of
preference towards e mail mode of communication,it has been decided by the bank to open a central
HR helpline for all employees which will take up any grievances for resolution/issues requiring
clarification /matters requiring support from bank’s side expeditiously and inform the bank’s response
immediately . This HR helpline will be operative through the e mail id and thereby open to all
employees of the bank on continous basis.
HR.helpline@bankofbaroda.com
This e mail should contain the name,ec no,designation,mobile/contact no ,present place of

posting,Region and Zone at the very beginning of the mail to enable the authorities to properly
identify the employee and get in touch with him/her phyisically or over phone,if so required.

AWARENESS ABOUT OUR BANK:
Brief History:
 Bank of Baroda is having a long, eventful and glorious history of more than 106 years. HH Sir, Maharaj
Sayajirao-III founded the Bank.
 The Bank made a humble beginning in 1908 in a small building in Baroda. On 20th July 1908 Bank of
Baroda Limited was registered under the Baroda Companies Act of 1897, with a paid up capital of Rs.
10 lacs. Soon after establishment, the Bank extended its operations to three other commercial centers
of Gujarat namely, Surat, Mehsana and Navsari. In 1919, the Bank crossed the state frontiers by
setting up Mumbai Main Office.
 In the year 1935, Bank became a scheduled Bank. RBI included the Bank in the second schedule of RBI
and brought under direct control of RBI. The first safe deposit lockers were provided at Baroda in 1939.
At the time of independence in 1947, Bank of Baroda was a regional bank with 48 branches. However,
it found a place in India’s ‘Fortune Five’ list of Banks.
Board Of Directors:
Board Of Directors
1. Shri Ravi Venkatesan Non-Executive Chairman
2. Shri P. S. Jayakumar Managing Director & CEO
3. Shri B.B. Joshi Executive Director
4. Shri Mayank K. Mehta Executive Director
5. Shri Ashok Kumar Garg Executive Director
6. Shri Gopal Krishan Agarwal Director
7. Shri Mohmmad Mustafa Director
8. Smt Surekha Marandi Director
9. Shri Prem Kumar Makkar Director
10. Dr R.Narayan Swamy Director
11. Shri Bharat kumar Dhiruvai Danger Director
12. Prof. Biju Varkkey Director
13. Ms. Usha A Narayanan Director
Project Navoday:
Project Navoday places our customers and employees firmly at the centre of the Bank’s strategy, and builds on
learning. The following are the prority areas under project navoday.
a) Establish long term and profitable customer relationship across businesses
b) Expand our corporate and international banking businesses
c) Redesign process and system providing more time to focus on customer management and sales.
d) Make our bank future ready on digital banking solutions.
e) Realignment of structures across the Bank to focus on building lasting relationship.
f) Unleash the potential of our people through various HR initiative.

Bank has established a Project Mangement office and dedicated change leaders have been identified from
across the bank to guide and institutionalize the changes. The e-mail id of the department is
navoday@bankofbaroda.com.
As part of Bank's commitment to corporate social responsibility , Bank has set up

1. Baroda swarojgar Vikas sansthan
2. Baroda grameen Paramarh Kendras
3. Financial Literacy & Credit counselling Centres.
There are -47- Baroda swarojgar vikas Sansthan s in -6- states of Bihar, UP, Uttarakhand,Rajasthan,Gujarat
& Maharastra to train rural youth in skill development, self employment ventures etc.
There are -52- Baroda Grameen Paramarsh Kendras for imparting financial education , credit counselling,
under financial Inclusion.
Bank has also set up -45- FLCCs christened as " SAARTHEE" educating & helping rural people under
financial distress
Branch Network:
Domestic Branches as on 30th Nov 2016

Metro Urban Semi-Urban Rural Total
1012 947 1439 1981 5376
Overseas Branches/ Offices 107 in 24 Countries (26 including 2 Joint venture at
Zambia & Malaysia)
Total ATMs About-8723
ELobbies 230
Specialized Mortgage Store (SMS): (hitherto known as Retail loan factory)
Centralisation of Retail Credit Process - Loan Process Flow:

1. Branches, DSA and Marketing Team (at SMS) shall generate lead and provide the same to SMS.
2. SMS shall gather requisite papers from prospective borrowers as per bank’s extant guidelines)
and as per check list circulated. All documents to be self attested by borrower, application forms
duly filled-in in all respects.
3. SMS shall arrange for site verification, KYC verification, business /employment place verification
through its officers and obtain report thereon. While verifying KYC documents/ submitting
report, the respective SMS Officer must put their name, designation and sign. Number beneath
the signatuers.
4. The site verification report, amongst other usual aspects of the report, should have clear
comments about boundaries of property, status of the property, if under construction – whether
construction work on-going or stalled, stage of construction, whether progress as per schedule,

likely completion / possession period, if property is already constructed, present occupancy of
the property, whether inspecting officer satisfied etc.
5. SMS shall arrange for ‘Title Clearance Report’ (TCR) from Bank’s approved advocate. The Legan
opinion from the advocate (in the prescribed format) should clearly mention ‘nonagriculture use’
permission / status, enforceability of rights under SARFAESI act, safeguards / documents to be
taken especially with regard to property’s specific status e.g. tenanted property etc.
6. SMS shall arrange for valuation of the property offered as security as per bank’s extant
guidelines.
7. SMS shall arrange for verification of Income Tax Returns.
8. SMS shall verify all the documents /application etc and examine prima-facie, in order.
9. SMS shall scan all the documents / papers as per check list (and any other document /paper
relevant in specific cases) through scanners provided at their end. Each indiviual document
should be scanned as one set instead of each page separately, in proper chronological order,
Top upside. Scanned documents should be saved in PDF format. Scanned image should be clear
and legible.
10. SMS should enter applicants’ particulars in ‘Loan Tracking System’ (LTS) and upload all the
relevant scanned images against respective item in the list provided under LTS. The documents
for which list is not available in LTS, shall be uploaded under Misc /unspecified fields.
11. The SMS shall fill in the columns provided in the check list (confimation for uploading of
document or comment there against), scan the same also alongwith the forwarding letter and
upload through LTS as another document. SMS shall note that unless all the required
documents are provided in one-go, CPC (central processing cell at present at Baroda) shall not
be in a position to process the application.
12. After upload of the documents in LTS, each document need to be verified by the second officer
(observing maker checker concept). Since CPC shall be taking decision only against scanned
copies of the documents, it is assumed that the SMS (maker & checker) Centralisation of Retail
Credit Process - Loan Process Flow Page 2 have verified authenticty of the documents
uploaded. Unless the documents are verified by the SMS in LTS, the same shall not be visible to
CPC for download.
13. It would be advisable that the SMS before leaving the office, should send an e-mail to CPC
regarding applications uploaded by them during the day to enable the CPC to track the same
and take up with respective SMS if certain applications / documents are not visible/ missing to
them (may be due to non-verification by second officer).
14. As the scheme parameters have been relaxed generously, henceforth, deviations should not be
there. However, in very deserving cases, if there is some deviation involved SMS shall make a
reference / Note to CPC alongwith justifications (including cogent reasons, strength, ancillary
business details etc) and recommendations, alongwith copies of relevant documents/ papers.
Such request shall also be submitted through LTS only as in case of normal proposal. Note for
Deviations must be submitted under signature /approval of SMS Head.
15. On receipt of all papers / documents through LTS, CPC shall download and take print of such
document. CPC shall process the application. In case, of any deficiency /shortcoming of
documents /papers, CPC shall communicate the query to SMS (through LTS /email).
16. SMS to arrange to attend the queries and to provide additional information/ details if any
requested by CPC related to processing of proposals, in a time bound manner and to follow up
with the applicants to collect the additional documents if any required. While communicating
with CPC, the SMS officials should mention their name, designation, contact number in e-mail /
correspondence for contacting back.
17. On sanction of the application, CPC shall scan the sanction letter, appraisal note etc and send
the same to SMS and respective branch through email, for preparing for disbursement. Hard
copies of the sanction/ apprasial note shall be sent to disbursing branch through courier
immediately.
18. In case of rejection, CPC shall convey the decision to respective SMS.
19. On receipt of scanned copy of the sanction from CPC, SMS shall arrange to provide the file
containing hard copies of all documents / application / papers (provided by them to CPC for
taking decision) along with loan documents downloaded from LAPS to the respective branch.
The structured documents shall be available to SMS for taking print-out through LAPS.
20. The disbursing branch shall arrange to communicate the sanction to the applicant. Disbursing
branch shall arrange for execution of documents.
21. After execution of documents and getting the executed documents legally verified (wherever
required as per Bank’s extant guidelines), the disbursing branch shall approach the appropriate
authority for ‘Disbursement Authority’ as per bank’s extant guidelines.
22. Disbursement of Loan proposals sanctioned by CPC, which are upto the Discretionary Lending
Powers of the concerned Branch Head, where Loan is parked, to be made without making
reference to CPC/ higher authority.
23. Disbursement of Loan proposals sanctioned by CPC, which are beyond the Discretionary
Lending Powers of the concerned Branch Head, where Loan is parked, to be referred to the CPC
for prior permission for disbursement.
24. After having the disbursement authority, branch shall proceed for disbursment.
25. After 1st disbursement, Branch shall intimate the respective SMS and CPC for having disbursed
the loan.
26. In case of Staff Housing Loan Scheme, proposals of Award Staff and Officers upto Scale-III will
be processed and sanctioned at CPC.
27. Proposals under Staff Housing Loan Scheme, for Executives in Scale IV and above will be
processed at CPC and to be forwarded to respective Regional/ Zonal/ Higher authority for
sanction as per the existing guidelines for sanctioning Staff Housing Loan.
28. CPC / sanctioning authority shall submit the sanction / approval of deviations to the appropriate
authority for PSR noting. PSR observations if any, shall also be communicated by CPC to
respective disbursing branch through email. Branch shall take cognizance of PSR observations
at the time of disbursement (if communicated before such time) or after disbursement as the
case may be.
29. ‘In Principle Sanction Letter’ & ‘Pre Approved Letter’: If required, SMS shall issue ‘In-Principle
Sanction Letter’ to the applicant, based on the income declared by the applicant, as per existing
guidelines and scheme parameters. In case of ‘Pre Approval Letter’ as per ‘Baroda Pre
Approved Home Loan’, the SMS has to sent all the documents except property documents to
CPC thorugh LTS for sanctioning and issuance of ‘Pre Approval Letter’ by CPC, subject to other
conditions of the scheme.

Gen-Next Branches:
To respond to the needs of the changing demographic profile of the country, the bank has been
endeavoring to customize delivery channels especially for youth segment. As a part of these efforts,
the bank has set up innovative “Gen- Next branches” dedicated to youth and young IT professionals at
certain places. The branch will have youth specific products and will function as a model for fusion of
“Hi-tech and High-touch Banking”.
The Branch is offering following liabilities and assets products to the customers:
1. Gen Next SB account facility with AQB of only Rs. 500/-
2. Gen Next Suvidha in the form of Recurring deposits
3. Gen Next Life style –Loan for purchase of furniture, vehicle, laptop etc.
4. Gen Next Power in the form of OD, 5 times of the net salary income based on credit rating.
Global Syndication Center & IMBC:
1. Bank’s Global Syndication center at London was set up in 2000. With a view to tap the growing
business opportunities in the Middle East and South East Asia Region, Bank has decided to start
new Regional syndication Centres at (1) Dubai (2) Singapore and (3) Johansberg.
2. The Bank has started a specialized outfit- International Merchant Banking Cell (IMBC) at
International Div. Mumbai to service the ever growing demand from Indian Corporates for funds
from International markets. IMBC is also active in funding Merger & Acquisitions of domestic and
overseas companies by Indian Corporates. The IMBC will arrange for syndicated loans, Bonds,
FCCBs etc. And investment banking and advisory services.
Wealth Management Services:
 Our Bank as part of customer centric measure initiated Wealth Management Services to provided our
HNI and affluent customer a complete financial solution at one stop. The service has enabled our
customers to buy various investment products through our branches and is positioning our Bank as
“One Stop Financial Super Market”.
 Under Wealth Management Services currently we are offering 3rd party products in Bancassurance,
Mutual Fund, e-Trading etc. under tie up arrangement with various partners.
Segment Name of Tie-up Partner Products

Life Insurance IndiaFirst Life Insurance Co. Ltd. (Joint Unit Linked Insurance Plan
Venture Co. of the Bank) Term Insurance Plan
Endowment Plan
Group Insurance Plan etc.
General Insurance National Insurance Co. Ltd. “Baroda Health” co-branded medi-insurance
products for hospitalization expenses
Insurance covered for assets such as
vehicle, business & industries, live stock etc.
from various risks.

Mutual Fund Baroda Pioneer Mutual Fund (Joint venture Co. Growth/Equity Scheme
of the Bank) Income / Debt Scheme
UTI Mutual Fund Balance Fund
Birla Sunlife Mutual Fund Money Market or Liquid Fund
Reliance Mutual Fund Gilt Fund
Sundaram BNP Paribas Index Fund
Franklin Templeton Investments Tax Saving Scheme
Fixed Maturity Plan
Kotak Mahindra Mutual Fund
IDFC Mutual Fund
Presently E-Trading is done through BoB Capital Markets Ltd.
Other Major tie up / MOU of Bank with other Service providers:
 Bank of Baroda enters into an agreement with Bombay Stock Exchange for clearing and settlement
 Car Finance with Tata Motors Ltd., Hyundai Motors India Ltd., Mahindra & Mahindra Ltd., Maruti
Suzuki India Ltd.
 Tie up with Kotak Mahindra Old Mutual Life Insurance Ltd. For providing Life Insurance Cover to
Education Loan borrowers and Home Loan borrowers sanctioned under a special package.
 MOU with CGTMSE for extending collateral free loans up to Rs. 100 lacs under Risk Sharing Facility
scheme launched by CGTMSE.
Role of Branch manager in the changing Environments:

1. To move forward to transform itself into a ‘Multi –Specialist Bank” with large number of branches
brought under CBS, Branch Manager’s role is changed 360 degree.
2. From largely transaction processing and inward looking role to marketing, customer actuation and
business development role.
3. He has to emerge as role model for the other staff at the branch as an effective marketing and sales
ambassador.
4. To create sales and marketing environment so that front line staff will have e to don the hat of a
salesman.
E-Payment of Taxes “Enabling Non-Customers and Non-Baroda Connect Customers”:

 CBS Branches to open a Current Account, under special scheme code “CA 118”- General Tax
Remittance Account (Name of the Branch) & obtain Baroda Connect ID & Password.
Advantages to Customer:-
 Having no Net banking facility can make e-payment of Taxes
 No formalities-Registration , login ID,PW etc
 Online check of PAN / TAN / Assessee code
 Confirm immediate Tax payment – Challan
 Instant cyber receipt/counter foil with CIN, Payt. details , Name of the branch
 Counter foil can be regenerated
 Tax payment for any commissionerate available
 On line Tax payment by branch on behalf of any individual , corporate etc
 No limit on amount
 For customer free
Advantages to Bank / Branch:-
 Rs. 45/- per challan revenue
 Attract Non customer-Expand Business
Corporate having many units/brs.:
 different assessee code/PAN/TAN can pay from single point-need not required separate Bank
accounts Internet banking for each account
 Good Non Fund based income source from a single corporate
 Chances for cross sell of products to HNI/Corporate
Baroda Academy:-
To train the employees on new desired skills, entire training system of the bank under the aegis of
Baroda apex academy,Gandhinagar has been converted into Baroda Academy.
Business Figures:-
BANK OF BARODA FOR Q2 AND H1, 2016-17 (FY 2017); Highlights (Standalone Basis):
 Operating profit of INR 2,690 crore, up by 15.10% YoY; the highest in the last 6 quarters.
 Profit after Tax of INR 552 crore up by 345% y-o-y and 30% q-o-q.
 Gross NPA at INR 42,949 crore remains stable while Net NPA at INR 19,342 crore, down on Q-o-Q
basis. GNPA at 11.35% and Net NPA at 5.46%.
 Provision Coverage Ratio (PCR) improved to 62.95% as on September 30, 2016 from 60.17% as on
June 30, 2016 and 60.09% & 52.70% as on March 31, 2016 and December 31, 2015 respectively.
 Domestic CASA grew on an average by 14.95% (on y-o-y basis) and 3.34% (on q-o-q basis) driven by
Savings bank deposit growth of 16.06% and 3.91% (on yo-y and q-o-q basis respectively).
 Domestic CASA as %age of domestic deposits on average basis stood at 33.63% as compared to
29.16% as at September 30, 2015 and 30.62% as at March 31, 2016. On terminal basis, Domestic
CASA percentage stood at 34.23%.
 Continued focus on recovery and collections, portfolio rebalancing and improving profitability.
 CRAR (Basel III) stood at 12.94% with Tier I ratio of 10.59% and CET 1 of 10.09%, excluding profits
of current half year FY17.
Performance Highlights as on 31.03.2016
 Total Business (Deposit+Advances) stood at Rs 9,57,808 crore.
 Gross Profit and Net Profit were Rs 8816 crore and Rs. (5396) crore respectively.
 Capital Adequacy Ratio (CAR) as per Basel III stood at 13.17%.
 Retail Credit stood at Rs 50,850 crore constituting 18% of your Bank's Gross Domestic Credit in
FY16.
 MSME Credit stood at Rs 54,990 crore constituting 20% of your Bank's Gross Domestic Credit in
FY16.

 Net Interest Margin (NIM) in global operations was 2.05% and in domestic operations at 2.60%
during FY16.
 While Gross NPAs to Gross Advances stood at 9.99%, Net NPAs to Net Advances
stood at 5.06%.
 Net Worth as on 31.03.2016 was at Rs 30,586 crore. Book Value per share at Rs 132.74 as on
31.03.2016.
 Business per Employee was Rs.1680 lacs.
Terminal Figures:
(Rs. in crores)
Sr Business Parameter As on 31.03.2016 As on 30.09.2016
No. (Yearly Results) (Quarterly Results)
1 Total Business 9,57,808 9,21,681
2 Total Deposits 5,74,038 5,67,531
3 Advances (Net) 3,83,770 3,54,150
4 Net Profit (5,396) 552.12
5 Capital Adequacy Ratio (BASEL III) (%) 13.17% 12.94
6 Gross NPA % 9.99% 11.35%
7 Net NPA % 5.06% 5.46%

BANKING
TECHNOLOGY

ADC Products of our bank:
1. Some Recent Initiatives by the bank
2. ATMs
3. Debit Cards
4. Baroda Rewardz – Bank Loyalty Programme
5. Baroda Pre-paid cards (Gift card & Travel easy card)
6. Baroda Connect (internet banking)
7. Baroda m-Connect (mobile banking) and Mconnect+
8. Baroda MClip- Bank’s Mobile Wallet
9. Baroda M Pay
10. Cash Deposit Machine
11. Cheque Deposit Machine (MFK)
12. Baroda e-payment Gateways
13. Baroda Demat Services
14. Baroda e-trade
15. Contact Centre
16. Baroda mpassbook
17. M-OTP
18. Missed call balance enquiry/Mini statement
19. Baroda SMS banking
20. Baroda Cash Management
21. Baroda Easy pay
22. Baroda Remit Express/ Rapid Funds India/ Baroda Flash Remit
23. Biometric cards/ ATM
24. CTS
25. NEFT and RTGS
26. NACH
27. ACSROM
28. IT Act 2000
29. Green Initiative
30. CBS
1. Some Recent Initiatives by the bank:

a. New Products / Services
 Chillr app
 Express Lobbies (Includes Cash Recycler, ATM, Self Service Passbook printer)
 Launch of Loyalty program for Debit Card Customers – Baroda Rewardz
 Master Card Platinum Chip Debit Card (enhanced transaction limits )
 Master Card Classic Chip Debit Card
 Baroda Flash n Move+ (VISA) Contactless Debit Card
 Card to Card Fund Transfer through ATM
 Cheque book request through ATM
 Baroda e-trade now available on mobile devices (Android and ios) through mobile app
 Online Payment facility using Debit card and ATM PIN
 Launch of Baroda NUUP Mobile Banking Application for Android Phones
 Baroda M-Clip- Bank’s Mobile Wallet
 M-Connect plus
 Baroda M pay

b. New Customer Oriented functionalities in our Digital Banking products
 Baroda Connect (Retail)
- OnlineSelf Registration by Customer by using Debit Card and Registered Mobile
Number
- OnlineRetrieval of USERID
- Online resetting of Transaction Password
- Mobile OTP – Generation of OTP on Smart Phone
- Passwordnow being sent in Activated Mode
 Self mapping of new passbook in Self Service Passbook Printer
 USSD Direct Access Code to minimise the steps involved in USSD based mobile
 transaction e.g. for mini statement *99*48*2#
 Baroda M-Connect – Instant Registration through Branch and Interoperability
 24X7 Debit Card Hotlisting and Webchat services through Contact Centre
 Debit Card Blocking through SMS
 Bank has launched its presence on social media platforms viz; Facebook and
Twitter
 Increase in Transaction limits of IMPS
 Missed call facility- Addition of new functionality
 Baroda TravelEasy Card – Availability in AUD and SGD currencies
 “Multi Function Kiosk (MFK)”- Enhancement of functionalities
c. Simplification / Changes in processes

 Branch retail customer relationship management (CRM) for 360° view of the customer (through
BRCRM option in Finacle). Following details of customer will be available on the user screen –
 Accounts
 Transaction analysis
 Customer Analytics
 Personal details
 Organization
 Address/phone
 Relationship
 Issuance of NPDC (Non-Personalised Debit Card) discontinued w.e.f. 01.02.16
 Migration of ECS Outward Services from RECS to NACH platform
 New Menu options such as DCISS (Debit card reissuance, regeneration of PIN,
multiple account linking / delinking and card blocking) DCARDBLK (For f\blocking of
Debit card through branch), new portal of BOBCARDS for Debit Card CRM (complaint
resolution module)
2. ATMs
There are two types of ATMs on the basis of it’s management
 CAPEX – Capital Expenditure, i.e. ATM machines purchased and managed by our bank
 OPEX - Operational Expenditure, i.e. ATM machines purchased and managed by other agencies, we
only pay transaction charges to the agencies, as per it’s use

There are three types of ATMs as per it’s place of installation
 OFFSITE – Installed at a location which is not adjacent to the branch premises
 ONSITE - Installed inside or attached to the branch premises
 MOBILE - Installed on a mobile van, which moves on wheels as per schedule
Different terminologies used in ATM transactions:
o ON US transaction - our customer using our ATM

o ISSUER transaction - our customer using other bank ATM
o ACQUIRER transaction - other bank customer using our ATM
Facilities available at ATMs:
 Cash Withdrawal a– our ATM as well as Other ATM

 Balance Enquiry - our ATM as well as Other ATM
 Mini Statement - our ATM as well as Other ATM
 PIN change - our ATM as well as Other ATM
 Fund transfer to self linked accounts - our ATM only
 Fund transfer through NEFT - our ATM only
 Card to Card Fund Transfer - our ATM only
 PMJDY OD request -our ATM only
 Aadhaar Seeding - our ATM only
 Institutional fees payment - our ATM only
 Direct Tax payment - our ATM only
 Mobile banking registration/deregistration- our ATM only
 Aadhaar number seeding - our ATM only
 Cheque book request - our ATM only
 Gift card balance enquiry - our ATM only (not correct)
3. Debit Cards:
a) Launch of MasterCard Platinum Chip Debit Card

1. Higher limits of Cash Withdrawal up to Rs 50,000/- per day from ATM and Purchases up to
Rs.1,00,000/- per day at POS/e-commerce merchants wherever Master Cards are accepted in India
and Abroad.
2. Validity of card is Five years from the month of issuance.
3. Maximum number of ATM cash withdrawals allowed per day is 10.
4. Secured with PIN and CVV2 for online transactions.
5. Ready for international usage on millions of MasterCard ATMs/Terminals.
6. Targeted for HNI, overseas travelers and privileged customers.
b) Launch of Baroda Flash N Move+ Contactless Debit Card

Bank has launched Baroda Flash n Move+ Contactless Debit Card in co-ordination with VISA. The card is
based on Near Field Communication (NFC) technology where in the debit card need not to be dipped or
swiped at the POS. Instead, the cardholder simply taps the card over special POS terminals (enabled for
accepting contactless cards) for making purchases at POS.

Key features of the card are as follows:
 It is a Platinum variant of Visa debit card with higher limits of ATM Cash Withdrawal and
POS/ecommerce transactions.
 Can be used for domestic as well as international transactions
 Same Card can be used for making payment through both Contactless modes (by
tapping/bringing the card near to POS terminal within a radius up to 4 cms) or Contact based
mode (either by swiping the card through Magnetic Stripe or dipping the Card through Chip).
 Can be used at ATMs to withdraw Cash or avail any other value added service.
 Make online purchases through Internet.
 For convenient shopping, travelling, dining out at many locations wherever contactless debit
cards are accepted
 As per RBI guidelines, Contactless transaction up to a maximum of Rs 2000/- can be done
without PIN at POS. If amount is more than Rs 2000/-, Customer has to mandatorily enter the
PIN. However, Customer also has choice of using PIN on purchase at POS for an amount less
than Rs 2000/- by opting for Contact based mode.
Card limits:
A. ATM:
 Maximum per day limit Rs 1,00,000
 Maximum per transaction limit on our ATM Rs 15,000
 Maximum per transaction limit on other Bank‘s ATM Rs 10,000
 Maximum no of cash withdrawals allowed per day 10
B. POS
 Maximum per day limits at POS (Inclusive of NFC & e-commerce transactions): Rs 2,00,000
 Maximum per transaction limit using Contactless mode: Rs 2,000
 Total Count of purchases at POS in a day using: Contactless mode (NFC i.e. Near Field
 Communication): 5
 Due to limited availability of contactless enabled POS terminals in India, presently Flash N
 Move+ is being launched in 3 Regions of Greater Mumbai Zone viz MMSR,MMCR and MMNR,
Discontinuation of magnetic stripe only debit cards

 RBI has advised to discontinue the issuance of magnetic stripe only debit cards, from 1st February
2016, except debit cards issued under government schemes.
 In view of compliance, branches are to discontinue the issuance of Non Personalized Debit Card
lying unused in the branches.
 Further, bank is in the process of introducing Chip Based Non Personalized Debit Card as
replacement of Magnetic Stripe Non Personalized Debit Card.

Summary of Debit Card variants effective from 01/02/2016:
Sr. Name Acceptance Per day Par day

No. Limit at ATM limit at POS
Classic Variants:
1. Visa Electron Domestic only Rs 25,000/ Rs 50,000/
2. MasterCard Classic Domestic only Rs 25,000/ Rs 50,000/
3. RuPay Classic Domestic only Rs 25,000/ Rs 50,000/
Platinum Variants (HNI/NRI Customers/Overseas Travellers):
4. Visa Platinum Domestic & Rs 1,00,000/ Rs 2,00,000/
International
5. MasterCard Domestic & Rs 50,000/ Rs 1,00,000/-
Platinum International
6. RuPay Platinum Domestic & Rs 50,000/ Rs 1,00,000/-
International
Others (Financial Inclusion/Govt Schemes):
7. RuPay PMJDY Domestic only Rs 25,000/ Rs 50,000/
8. RuPay BKCC Domestic only Rs 25,000/ Rs 50,000/
9. RuPay MUDRA Domestic only Rs 5,000/ Rs 5,000/
Note: RuPay Bhamashah and RuPay Samagra (BIN 607848) issued in Rajasthan and MP State respectively
are part of RuPay PMJDY Card
Launching of Baroda MUDRA Card:

 Bank has launched Baroda Mudra Card in pursuit to offer better banking facilities to borrowers who
avail Working Capital facilities under Pradhan Mantri MUDRA Yojana (PMMY). The card is envisaged
to meet the requirements of MUDRA customers to use alternate delivery channels like ATMs for cash
withdrawal and also POS usage.
 At present the Card can be used at ATM and POS only with a provision for allowing Online purchases
to be considered at a later date. This will ensure availability of funds 24x7 to borrowers any time as
per their needs, without visiting the branches.
Profile of Baroda MUDRA Card:
 BarodaMUDRA Card is exclusively for PMMY borrowers enjoying Working Capital limits under all three
segments of PMMY viz. SHISHU, KITSHORE, TARUN.
 The card is RuPay enabled and is linked to PMMY/ CC/OD accounts to be used at our Bank's ATM
network and NFS member ATMs in India.
 Card can also be used at selected RuPay enabled POS outlets (as identified by NPCI).
 This card is EMV chip card which can be operated through PIN at ATMs and POS.
 Card can be issued to PMMY customers, on request, who will be availing Working Capital facilities.
 Withdrawal through Baroda MUDRA Card is restricted up to Drawing Power within the overall
operating limit as per the extant guidelines applicable under PMMY scheme.
 Further, withdrawal through Baroda MUDRA Card is restricted up to Rs.5000/- per day with maximum
4 number of withdrawal from our Bank's ATM and from other Bank's ATM and for purchases up to
Rs.5000/- per day at POS. (subject to balance available in the account).
India First Premium payment through bank of baroda ATM:
Customers can pay India first life insurance policy premium through bank of baroda ATMs with effect
from 20thjuly 2013. Customer will insert the BOB debit card into the ATM, select the language option
and after entering the PIN, customer will be taken to main menu. Customer has to select “Other
Services” option for India first policy Registration and payment services.
Direct Tax Payment through ATM:
For doing direct tax payment through ATM by the customers they need to register themselves (one
time ) by submitting a request letter to the base branch.
Base branch identified officer ( the officer as well as verifier needs to obtain the right to register a
customer for doing direct tax payment through ATM by submitting the UCMR form through fax to
Data Centre mentioning “enable for registration of customer for doing direct tax payment through
ATM” ) has to log on to the internet site through URL
https://securevas.fssnet.co.in/APS/bobbanklogin.htm and putting the credentials of Finacle user will
be able to register the customer as well as it needs to be verified.
NEFT Funds Transfer through ATM:
Salient Features:
1. This facility will be available on Bank of Baroda ATM’s.
2. One time registration is required at branch for registration of Beneficiary account number and IFS
code.
3. The Registration Facility is provided in CBS through menu option “BENRATM”.
4. A Customer can register maximum -2- beneficiaries per day and altogether maximum -99-
beneficiaries can be registered with a single debit card.
5. The minimum amount for NEFT through ATM is Re.1/-, maximum amount is Rs. 50,000/- per
transaction and Rs. 2,00,000/- per day.
6. There is no limit for number of transactions in a day (subject to the maximum cap Of Rs 2,00,000).
7. NEFT fund transfer after the prescribed cut off time will be processed on the next working day.
8. Suitable communication screen about timing will be displayed to the customers.
Card to Card Fund Transfer:

1. This facility is an inter / intra bank fund transfer facility using NFS ATM network.
2. The fund is transferred instantly on a 24X7 basis including holidays.
3. The service is chargable at Rs.10/- + taxes per transaction
4. Fund Transfer limit is Rs.5000/- per transaction and Rs.25000/- per month

Cheque book request through ATM:
Customer can request for cheque book through ATM using their debit cards, which needs to be
verified by base branch through menu HCREQ and after verification it will be printed at RBO,
Baroda and will be dispatched to customer’s address.
Usage of ATMs- Rationalisation of number of free transactions:

 Number of mandatory free ATM transactions for savings bank account customers at other banks’ ATMs
is reduced from the present five to three transactions per month (inclusive of both financial and non-
financial transactions) for transactions done at the ATMs located in the six metro centres, viz. Mumbai,
New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad.
 Except the six metros mentioned above there will be five free transactions per month (financial or non-
financial) at all other centres for Savings Bank customers, as existing.
 There is no restriction for using our bank ATM by our customers upto permissible number of
transactions as per card variant
 The charges that shall be levied to the Savings Bank Account Customer after permissible free
transactions on other Banks’ ATMs are as under:
a) Rs 20/- plus service tax per transaction for Financial Transaction.
b) Rs.10/- plus service tax per transaction for Non Financial Transaction.
 For current/ Overdraft account holder: Rs 20/- plus Service Tax for every Financial transaction and
Rs.10/- plus service tax per transaction for Non Financial Transaction;
 No transactions are free for these account holders for usage of Debit Card on other Banks’ ATMs.
Issuance of RuPay PMJDY Debit Card to Minors:

 Accounts opened under Financial Inclusion Scheme: Minors above the age of 10 years opening Savings
Bank Account under Financial Inclusion Scheme in his individual name with operational instruction
as “Self”(not through father & natural guardian) can be issued a RuPay PMJDY debit card.
 Accounts opened in Scheme other than Financial Inclusion Scheme: Existing criteria of 15 years of
age and above remains unchanged for issuance of debit card (any variant) to Minors maintaining
Saving Bank Account in his individual name with operational instruction as “Self” (not through
father & natural guardian).
SMS Alerts to customers for Debit card Hotlisting/Blocking:

 An SMS alert will be sent as a token of confirmation to the Debit card holder on their registered mobile
number, whenever a debit card is hot listed/blocked.
 The different options available to card holders for hot listing of debit cards are
Sr.No Particulars Timings Contact Number
1 Contact Centre through IVR 24X7 1800 22 33 44 or
1800 102 44 55
2 Toll Free Number BOBCARDS) 24 x 7 1800 220 400
3 Helpline (BOBCARDS) 24 x 7 91-22 2677 6701
91-22 2677 6702
4 Branch Branch timing DCARDBLK
5 SMS in prescribed format 24X7 <5616150>
RuPay Debit Card- Introduction of RuPay Insurance Program :
 Introduction of a unique feature of Insurance of Rs 1 lakh to Rupay Classic and Rupay-PMJDY variants and
Rs. 2 lakh for the EMV Chip Rupay Platinum variant (accidental death or Permanent disability) to eligible
Card holders within the age of group of 18-70 years.
 As per the eligibility criterion of the scheme, a Cardholder is eligible for above said insurance cover only if
he/she has performed minimum one successful financial or non-financial transaction through ATM/micro-
ATM/POS/E-commerce in last 45 days prior to incident e.g. if accident occurred on April 01, 2014,
transaction (either financial or non-financial like balance inquiry/mini statement/etc.) by RuPay Card must
have been done on or after Feb 15, 2014. Non activation/usage of these cards will deprive the customers
from the benefit of accidental insurance.
 Branches can view only financial transactions from Finacle; however, particulars of any non-financial
transaction like Mini Statement/Balance Inquiry/PIN Change will not be available to them in Finacle.
 Since non-financial transactions are also eligible to be considered for insurance cover, branches may obtain
the details of the non-financial transaction performed by the Cardholder using RuPay Debit Card in last 45
days from Base 24 Team (TBD) at Base24India.dc@bankofbaroda.com.
 On receipt of any request from the RuPay Debit Cardholder for Accidental/Permanent Disability Insurance
Cover at branch, same should be forwarded to their respective Regional Office, along with complete
documentation as prescribed under “Procedure for Claim” of the above mentioned circular.
 Regional Office has to submit the claim directly to the HDFC ERGO General Insurance Company (HDFC
Ergo) or The New India Assurance Company Limited (New India Assurance) for further processing.
 RuPay cardholders will be eligible for the compensation on only 1 eligible RuPay card per cardholder or per
customer even if multiple cards of different banks are meeting the eligibility criteria. The choice of the card
for the claim would rest with the customer.
 Claim intimation to HDFC ERGO for FY 2014-15 should be within Thirty (30) days and to New India
Assurance for FY 2015-16 should be within (90) days from the date of accident.
 All supporting documents relating to the claim must be submitted to HDFC ERGO or New India Assurance
within sixty (60) days from the date of accident.
Debit Card Dispute Management System:
BOBCARDS has introduced new portal for branches and contact centers. New portal shall be used for
following activities:
1. Lodging the debit card related complaints for the failed/fraud transactions.
2. Viewing the status of card/ PIN processed and dispatch.
DCISS:
A new menu in CBS/Finacle ¯DCISS has been developed/ implemented for various card related
activities as under:-
a) Debit Card Re-issuance
b) PIN Regeneration
c) Multiple A/c Linking or De-linking
d) Card De-blocking

Four eye principal/ Maker & Checker has been implemented for all these 4 activities. Hence branches have to
immediately verify the entries.
Multiple Account linking/ de-linking and Card de-blocking through DCISS will not be instant. It will happen only
after the request is processed by BOBCARDS within 1 working day.
4. Baroda Rewardz - Bank‟s Loyalty Program:
In order to increase the usage of our various ADC products, bank has embarked upon implementing a
comprehensive loyalty program - Baroda Rewardz. This loyalty program will cover Debit Cards, Mobile
Banking, Internet banking, Mobile wallet and other digital products launched from time to time. Our Bank has
engaged M/s Loylty Rewardz Pvt. Ltd to run these programs for a period of -3- years.
As a first program under Baroda Rewardz, bank has launched the loyalty program for our debit card
customer‘s wef 03rd December 2015. This program is aimed at encouraging our customers for usage of Debit
card on POS and e-commerce transactions for all debit card variants. The program detail is as Follows:
Name of the Bank’s Loyality Program Baroda Rewardz

Debit Card Variants All debit card variants (Visa/Master/Rupay)
Minimum Threshold point for redemption 200 points
of earned points
Value of each points Rs. 0.25
Validity of earned points 2 years from date of issue/earning
Transaction excluded from program Any type of tax payment
Period 12 months
5. Baroda Pre-paid Cards:
Our bank is having two variants of pre-paid cards

 Baroda Gift card
 Baroda Travel easy card
Baroda Gift card:
Baroda Gift Card is a prepaid “VERIFIED BY VISA” enabled pre funded card that opens a distinct proposition to
individuals and corporates with its instant availability ease of handling, longer shelf life and extended shopping
options for the beneficiary.
 Prepaid card require funds to be loaded before making purchases.
 Card can be used till balance is available
 These cards can be used to make purchases at merchant outlets and online stores
 The card looks just like any normal credit or debit card, with card number, signature strip and CVV2.
However, it is not a debit or credit card.
 It can only be used till amount is available on the card.
 Prepaid card can be issued to anybody
o with a Valid Bank of Baroda account
o to Non customer – For purchase of card upto Rs.5,000/- having a valid Government issued
photo ID

o Non customer – For amount higher than Rs.5,000/-, regular KYC is required
Features:
 Card can be loaded with any amount between Rs 500 to Rs 50,000 in multiple of Rs 1
 Cardholder can check balance & transaction history online through the URL –
https://bobprepaid.enstage.com/prepaid/cms/customer/index.jsp or by calling at customer care Toll
free number -18001025627- or through ATM using the PIN number provided along with the Gift card
 Not reloadable-once the balance is exhausted or the card expires, card becomes a souvenir
 No ATM cash withdrawal permitted (only balance enquiry)
 Can be used only in India
 Card is valid till 1 year from the date of purchase or expiry date printed on the card whichever is earlier
 Residual balance claim will be entertained by original purchaser only if balance amount is equal to or
more than Rs. 100/- and claim is lodged within 3 months of card expiry.
 Attractively packaged/ready to gift
 Across counter availability
 Competitively priced (almost best in the market)
 Can be purchased by any customer through Baroda connect with an additional postage fee of Rs. 25/-
irrespective of card availability at his base branch
Fee Structure:
For Retail customers For Corporate Customers

(Above 25 Cards)
Between Rs 500/- and Rs. 1001/- Rs. 15/- Rs. 15/-
Above 10002/- Rs. 50/- Rs. 40/-
PIN Regeneration Rs. 100.00
Baroda Travel easy card:

 It’s a Prepaid International Currency Card, not valid in India, Nepal & Bhutan
 Easy to carry and safer than cash.
 Presently issued in US Dollar, Pound sterling, EuroAustralian Dollar & Singapore Dollar
 Card available at B category branches authorized for Forex business across India
 These cards can be used to make purchases at merchant outlets, online stores or even withdraw at
ATM, which accepts Visa cards outside India.
 Travel card can be issued to a Customers or Non Customer (with proper KYC)
 Provision of Stand-by card is available
 Cardholder can check balance & transaction history online through URL –
https://bobprepaid.enstage.com/prepaid/cms/customer/index.jsp or by calling at customer care Toll
free number 18001025627, (+91-80) 43428177
 Minimum amount for which Travel easy card can be issued is US 200$

 Maximum amount is
• For Holidays/personal Visit-US$ 10,000/- per Financial year
• For Business Tour -US$ 25,000/- per Trip
• For Studies Abroad –US$ 100,000/- per academic year
• For medical Treatment -US$ 100,000/- per year
Validity of the Card:

 Baroda Travel Easy Card is valid for 3 years from the date of activation or the date printed on card
whichever is earlier.
 Activation of Card- Within 24 Hours. of Purchases
 Travel Card can be re-loaded multiple number of times before the expiry date (and subject to card
load/reload amount limitation as per RBI and FEMA guidelines).
Fee Structure:
 Issuance Fee Rs. 150/- + Service Tax on Foreign Currency Conversion
 Stand by Card Rs. 150/-
 Re-load Rs. 55/- + Service Tax on Foreign Currency Conversion
 Replacement Card fee in case of lost/stolen card USD 3/- (postage US$-20 extra)
 Chargeback Fee # USD 2/-
 ATM Withdrawal Fee (0.9% of transaction value)
 ATM Balance enquiry fee USD 0.5
6. Baroda Connect:
Baroda Connect, an internet banking product of our Bank, is the very important alternate delivery
channel (ADC). This also facilitates the customers to enjoy various banking services from the ease of
their house /shop/company or anywhere having internet connectivity, hence, in limited sense, we
may call it as “Mini Extension Counter” of the Bank.
In today’s buyers’ market, where “Customer is the King” and each and every service industry
including banking, are hovering around the centre point – CUSTOMERS, such a unique service is
extremely desired by the customers at large, especially by Gen-Next customers and it also proves the
concept of internet as www (“win-win-win” situation for the Customers, Bank & Employees).
Toll free number is – 1800222227.
Benefit to the Customers:

 24x7x365 access (even no effect of Sundays, Holidays & Strikes)
 Time Saving
 Substitute of Q-culture
 Transparency & Trust
 Available in other territories
 Remittances to other Banks
 Transfer of funds within Bank at no cost (without ‘Inter-SOL Charges’)
 Various ancillary services viz. e-pay, e-ticketing, utility bill payment
 Various other facilities at free of cost
 Special limit for Transfer of funds within Bank may be considered
Benefit to the Employees:
 Time saving as vouchers are not coming to the branches concerned for processing
 Operating Risk Mitigation upto some extent as transaction is being done by customers
Benefit to the Bank:

 Cost effective
 Additional services for retention & accretion of Gen-Next customers
 Image of the Bank as ‘Techno-savvy’
 Facilitate the Bank to upgrade / diversify the range of e-banking services
Unique Features of Baroda Connect:
In today’s intensive banking scenario, almost all banks are providing internet banking facility and services
provided are also more or less same. But, our Baroda Connect is having two very unique features – first,
transaction of future date can be scheduled well before and second, multiple-users, with Maker-Checker
facility, can be set in any Corporate User A/c.
Banking system thrives on customers’ stake / confidence reposed, hence, a safe & qualitative customer
service provided by the Bank is the pre-requisite for placing itself as ‘preferred position’ in the market.
Unfortunately, in recent past, some sort of illegal practices (phishing, vishing, mishing, smishing) by
unauthorized persons came into picture. Hence, for enjoying safe, comfortable and trustworthy internet
banking by our customers/users, our Bank has taken following initiatives:
 Awareness message on Home Page from phishing, vishing, mishing etc. attacks.
 Awareness creation by the branches to their users through various methods.
 Provision of “Virtual Keyboard” for entering Sign-on password.
 Provision of two different passwords - for Sign-on & for Transaction.
 Additional safety measure by disabling ‘Transaction Password’ if not used for 90 days, so that
chances of misuse due to unvigilant actions of customers could be eliminated.
 Sending SMS about transactions, on registered mobile phone to facilitate the users for early access
of genuineness of transactions.
 Daily / Weekly ceiling on transaction amount so that any unauthorized person cannot make big
damage to our users at once and subsequently, genuineness of transaction can be established by
the user, through receiving SMS and if it is unauthorized, necessary steps may be taken at the
earliest.
 Third party / Inter-bank fund transfer only after Registration by the user.
 Only -2- Beneficiaries can be registered on a day
 Fund can be remitted only after 24 hours of registration of the beneficiary.

 Fraud Management Services (FMS) has been implemented as additional safety measure.
 OTP Facility is providing additional safety.
Services offered to Retail Customers:

 Balance enquiry in Operative account, Deposit accounts and Loan accounts.
 Stop payments of cheques
 Tax Deduction Enquiry
 Account summary – summary of all operative, deposit and loan accounts
 Fund transfer to Self / linked account and Third party fund transfer.
 Fund transfer and NEFT can be scheduled for a future date.
 Request for cheque book, fixed deposit renewal, Switch Mailing address, account opening for CBS
and e-banking.
 Profile – customer can change his profile and change his password.
 Activity history – Customer can get details of all the activities carried out by bank.
 Modeling – Customer can model deposit / loan schemes of the bank and know about likely
maturity value, if he invests or likely EMI if he takes loan, etc.
 ASBA facility
 School Fee options
 Bill payment option
 Facility of IMPS for instant Inter/Intra Bank fund transfer through
 Baroda Connect (Facility is available only to mobile banking customers)
 Online Fixed Deposit opening facility
 Online RD account opening facility
 Online Gift card request facility
 View and crediting in existing PPF accounts
 Aadhar number linking with operative accounts
 Opening of Pradhan Mantri Jiban Jyoti Bima Yojana and Pradhan Mantri
 Suraksha Bima Yojana
Services offered to Corporate Customers:

 All facilities mentioned under Retail Customers
 Approvals – For corporate customers, there can be involvement of multiple users for transfer of
funds / payment of bills, etc and Baroda connect allows multiple users to log in and initiate /
approve the transactions, as per powers delegated by the corporate to their users.
 Trade Finance queries relating to– Import/Export, Inland Trade, B.G., Forward Contract.
 Direct Salary uploads facility.

Limit for transactions
Retail customers can have maximum -5- transactions/day. But in case of Corporate customers, there will
not be any restrictions on the Number of Transactions per day. The limit for corporate customer can be
increased on the request of the customer and recommendation of the concerned branch.
(Amount in Rs.)
Financial Transaction Limit for Retail Financial Transaction Limit for Corporate
Customers Customers
Self Third Online NEFT/ Self linked Third Online

linked A/c party/Shopping RTGS fund transfer party/Shopping NEFT/ RTGS
payment payment
Per txn limit Unlimited 2,00,000 5,00,000 Unlimited 5,00,000 10,00,000
Daily limit Unlimited 4,00,000 10,00,000 Unlimited 15,00,000 50,00,000
Weekly limit Unlimited 12,00,000 30,00,000 Unlimited 45,00,000 2,00,00,000
Monthly limit Unlimited 30,00,000 50,00,000 Unlimited 1,00,00,000 5,00,00,000
Yearly limit Unlimited 1,50,00,000 4,00,00,000 Unlimited 6,00,00,000 30,00,00,000
Baroda Connect – Online Fixed Deposit through net banking:

Online Fixed Deposit has been added to “Baroda Connect” portal. With this functionality Baroda Connect
users with full transaction right can open fixed deposit account online, without approaching bank branch.
Salient Features:
1. Initially, the functionality has been provided to only Retail Users having full transaction rights.
2. FD account can be opened for resident customers in his/her single name.
3. Rate of Interest on FD will be given as per the category defined in
Finacle. Staff and Senior Citizen rate of interest is also taken care of.
4. Type of schemes initially offered are:
 Regular – Income - cum Recurring Deposit (RIRD)
 Monthly Income Plan (MIP)
 Regular Income Plan (RIP)
 Baroda Utsav Deposit Scheme – Interest payable on maturity
5. Online FD account can be opened by debit to active saving and current
account only
6. Instant FD acknowledgement is generated wherein all details such as
account number deposit amount, interest rate, maturity date and
maturity value will be available and the same is printable/ savable.
7. Period and minimum amount of deposit:
o Minimum period: 12 months
o Maximum period: 120 months
o Minimum amount of deposit: Rs.1,000/-

Opening of Online Recurring Deposit account through Baroda Connect:
Salient Features:
 It can be availed only by resident retail users having full Transaction rights
(Not NRE).
 Only savings account can be used for opening online RD and as of now only
regular RD scheme (TD 113) is available.
 Period and minimum amount of deposit:
o Minimum Period: 12 months
o Maximum Period: 120 months
o Minimum monthly installment amount: Rs 100/- with multiples of Rs 100/-.
 Accounts will be opened in single name only (as available in the debit
account, First name in case of joint account as in finacle).
 Nomination available in the account at Finacle level can be added to the
online RD account.
 On due date, the maturity proceeds of RD will be credited to the operative account from where
the deposit was originated.
 Online RD will not to be issued in the name of the minor.
 The rate of interest available to senior citizen and / or Staff will be applicable in online
environment as well.
 Standing Instruction is MANDATORY and is automatically noted (to the debit of operative
account every month on the due date with a repetition for three days from the due date. In
case of non-execution of standing instruction, customer is required to deposit the installment
amount manually at branch).
 Passbook issuance, updation and premature payment of RD have to be handled by the
concerned branch.
 Loan against RD is to be sanctioned by the base branch after issuing Passbook and adhering to
extant guidelines as applicable for loan against non-online RD a/c.
 All other terms and conditions, applicable to non-online RD, will be applicable to these RD a/cs
also.
Online Fixed Deposit through net banking for NRIs/PIOs:
Salient Features:
 The functionality is available only to NRIs/PIOs having full transaction rights

 NRI/PIO customer can open NRE /NRO Term Deposit (TD) account
 ONLINE in his/her single name in the following deposit schemes:
o Regular – Income - cum Recurring Deposit (RIRD)
o Monthly Income Plan (MIP)
o Regular Income Plan (RIP)
o BarodaMahaUtsav Deposit Scheme – Interest payable on maturity
 Online NRE TD account can be opened to the debit of active NRE saving / current account.NRO TD
can be opened to the debit of NRO SB / CA only. This facility would not be availablefor debit to
Dormant NRE /NRO accounts.
 Rate of Interest on NRE/NRO TD will be applied as per the category defined in Finacle. As you are
aware there is no additional Interest payable to Staff and Senior Citizens.
 Instant FD acknowledgement is generated wherein all details such as account number, deposit
amount, interest rate, maturity date and maturity value will be available and the same is printable/
savable.
ASBA (Application Supported by Blocked Amounts):
 ASBA is a process developed by the Securities and Exchange Board of India (SEBI) for applying to IPO.
In ASBA, an IPO applicant's account doesn't get debited until shares are allotted. Qualified Institutional
Buyers (QIBs) are not allowed to participate in IPOs through ASBA facility.
 ASBA process facilitates retail individual investors bidding at cut-off, with single option, to apply
through Self Certified Syndicate Banks (SCSBs), in which the investors have bank accounts. SCSBs are
those banks which satisfy the conditions laid by SEBI. SCSBs would accept the applications, verify the
application, block the fund to the extent of bid payment amount, upload the details in the web based
bidding system of NSE, unblock once basis of allotment is finalized and transfer the amount for allotted
shares, to the issuer.
 ASBA means “Application Supported by Blocked Amount”. ASBA is an application containing an
authorisation to block the application money in the bank account, for subscribing to an issue. If an
investor is applying through ASBA, his 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, or the issue is
withdrawn / failed.
 It is a supplementary process of applying in Initial Public Offers (IPO), right issues and Follow on public
offers (FPO) made through book building route and co-exists with the current process of using cheque
as a mode of payment and submitting applications.
Linking and crediting of PPF account with Baroda Connect:
Our customers can link their PPF account (Maintained in our Bank) with their existing Bank account
through Baroda connect facility. Once linked, they can also credit fund in the PPF Account through
Baroda connect.
New facility of IMPS for instant Inter/Intra Bank fund transfer through Baroda Connect
IMPS (Immediate Payment Service) to facilitate instant Inter/ Intra Bank fund transfer for our Baroda
m-Connect users on 24 x 7 basis. This facility will be available only to Retail users, having mobile
banking facility. Funds can be transferred within India by debit to any available operative account in
the net banking account
Salient Features:

 This facility can be availed by users having Transaction right and who have registered themselves for
our Mobile Banking Services (M-Connect) giving mobile Number registered with Baroda Connect facility.
 Mobile Banking registration can be done through our branches and Bank of Baroda ATMs.
• New IMPS menu is provided under the Fund Transfer of user portal.
 This facility is given under two separate labels.
 IMPS fund transfer through MMID: Both remitter and beneficiary are required to be mobile banking
registered customers of their respective banks and need to have MMID (Mobile Money Identifier
number) mapped to mobile number. MMID is a unique -7- digits number which is provided to the
customers as part of mobile banking service Under this option, user can transfer funds to the
beneficiary account by keying in Mobile No. and MMID (Mobile Money Identifier) of the beneficiary.
User can select the desired account number to be debited from the drop down. This facility can be
availed for transfer of funds to Bank of Baroda account holders also.
 IMPS fund transfer through IFSC: In this mode of funds transfer, the remitter is required to be mobile
banking customer. However, the beneficiary need not be mobile banking customer and can specify only
the IFS code and Account no.
 User can transfer funds by giving IFS code and account number of the beneficiary. User can select the
desired account number to be debited from the drop down. This facility can be availed for transfer of
funds to Bank of Baroda account holders also.
o One time beneficiary registration with beneficiary MMID / Beneficiary IFSC is required.
o Only -2- beneficiaries can be registered in a day and fund can be remitted after 24 hours
of registration.
o Details of the IMPS transactions and its’ status for any date can be viewed through
Status Inquiry.
The transaction limit of IMPS through Net Banking has been increased vide circular dtd 19th sept, 2016
as per below details:
Sr. No Channel Existing Limits Proposed limits

Per day Per Transaction Per Day Per Transaction
Internet Banking 50,000 1,00,000 2,00,000 2,00,000
Online payment of India First Life Insurance Policy premium payment:
Online payment of India First Life Insurance Policy premium payment through Baroda Connect for all
Retail users having full transaction rights.
Online account opening for Prime Minister Bima Yojana:
Online accounts can be opened by Baroda connect customers for Pradhan Mantri Jiban Jyoti Bima
Yojana and Pradhan Mantri Suraksha Bima Yojana
Digital signature based Authentication facility in Baroda connect for corporate users:
In order to provide personalized security feature for our Baroda connect corporate users and also as mandate
by RBI, our IT team has built infrastructure for extending the option of “Digital signature certificate (DSC)
based authentication” facility to our corporate users.
7. Mobile Banking: M-Connect
 Our bank offers ―Baroda M Connect, the mobile banking facility to its customers.
 Customer can also link -5- more accounts held in the Bank and transact business on them. Much
beyond banking, customer will also be able to do transactions like bills payment, recharging the mobile
phones, NEFT fund transfer, IMPS fund transfer etc
 Mobile Banking services can be performed through a software or by dialing *99# (NUUP)
 Customers can start using Baroda M-Connect facility in three simple steps:
1. Registration either through ATM or through Base Branch or through Baroda Connect
2. Downloading of an Application Software for M-Connect or dialing *99#
3. Activation of M-Connect (creating login pw & changing mPIN for software based service
or changing mPIN only for NUUP service)
a. Baroda M-Connect -
This application has following major advantages:
1. Modern look of the application is appealing and thus, would encourage the users to regularly
use the system.
2. Customer is not required to pay SMS charges on every login. In Android / iOS /
Windowsphones, new app works on GPRS mode. It is mandatory to activate Mobile internet
(GPRS) while using M Connect.
3. In case of Java phone users, there are options of running the application on GPRS or SMS
mode.
4. In the later case, the customer would continue to pay for the SMS generated by the
application.
5. Icon based menu would make the application language agnostic.
6. For mobile recharge, the improved search string option, provided to locate mobile operator,
7. Reduces the current hassle of multiple entry by the customer.
Services:
1. Account Balance Enquiry
2. Account Mini-Statement with color coded debit and credit transactions
3. Fund transfer within Bank / Other Bank using NEFT
4. Fund transfer to other Banks using Immediate Payment Services (IMPS)
5. Mobile Recharge with auto saving of beneficiary name at first recharge. Mobile operator
i. search option is simplified for a hassle free recharge.
b. Baroda M-Connect facility to all New Customers:
There are -3- menus in Finacle to open an account viz. OACC, HOPNACCT and SAO. Of these
options, branches are using predominantly HOPNACCT and SAO menu. To encourage and
register all new customers for mobile banking these menus have now been updated with
following changes –
1. HOPNACCT Menu: In Mobile Banking‘field, default option in drop down menu is set as
YES‘ i.e. customer will be provided mobile banking service.
2. SAO Menu: In Mobile Banking‘ field (presently shown as ‗Mobile Subscription‘), default
flag is set as YES‘, where customer would be automatically enrolled for M Connect.
3. OACC Menu: Provision is being made to prompt the verifying officer to enable customers
for MConnect.
In our account opening form, there is an option for the customer to choose for mobile banking
services. Branches are advised to inform the customer about advantages of mobile banking and
encourage all new customers to tick the option for Baroda M-Connect.
In case customer does not want to register for the service, then the branch is to select ‘NO‘option for
mobile banking while opening account in Finacle using any of three menus.
If the registration is already completed through branch and at a later date, customer wants to
deregister the mobile banking services, then the branch can de-register the customer through HDCR
menu.
c. Baroda M-Connect – Instant Registration through Branch and Interoperability:
To gear up the registrations under M-connect, bank has made 2 improvements in the current
MConnect registration process viz., ‗instant registration / de registration / mPIN generation in Finacle'
and 'interoperability between all M-Connect registration channels (Branch-ATM-Net Banking)'
Instant registration:
 Like ATM and Net Banking, Branch channel is also live, where there is no need to wait for 24 hrs to
register / de register / generate mPIN through Finacle menus. M-Connect for newly opened
accounts:-
 Mobile banking registration option will appear automatically on HOPNACCT, OAAC and SAO menus
which are used to open a new account.
 Default option for Mobile Banking registration will be YES‘ in these menus when the account is
opened, customer is also registered for Mobile banking and the password (mPIN) is generated at
the same time (instantly)
 With this, new customers can be on boarded instantly and can also be activated. Main advantage of
this implementation is, as mPIN will be delivered instantly, customers can be provided handholding
by branch staff to activate the mobile banking in branch itself.
 M-Connect for existing accounts:-FINACLE menu for Mobile banking is HDCR
 Now, with automation of the menu, Mobile banking registration / de registration / mPIN generation
will be effective immediately, within no time
 As soon as the checker verifies the registration / de registration / mPIN generation request,
customer will receive the corresponding message / mPIN immediately.
 Now there is no waiting period of 24 hrs. Branch can now regenerate mPIN of any customer who
walks in with a problem regarding his / her mPIN, and the problem can be resolved without any
waiting time.

Interoperability:
There are 3 modes of M Connect registration, viz., ATM, Branch and Net banking. Now all these 3
channels are interoperable and mPIN generation / de registration can be done through any of the
three channels irrespective of the channel of registration.
d. Direct Access Code in USSD Mobile Banking:

 USSD stands for Unstructured Supplementary Service Data
 To increase the convenience of the users, a new update has been brought in USSD Mobile
Banking, wherein customers can dial multi mode codes (direct access codes) to access
different menus.
 Login- Main menu of Bank of Baroda Mobile Banking- *99*48# (‗48‘ is short code for Bank of
Baroda)
 Direct action Menu options are as under:
Menu
Balance Inquiry *99*48*1#
Mini Statement *99*48*2#
Fund Transfer-Using Mob. No & MMID *99*48*3#
Fund Transfer-Using A/c No & IFSC *99*48*4#
Know MMID *99*48*5#
Change M Pin *99*48*6#
Generate OTP *99*48*7#
Transaction limit –
Minimum amount of fund transfer is Rs.5/- through software & Rs.10/- through NUUP and Maximum amount
is
Through software Through NUUP (*99#)
Self linked a/cs Other transfers IMPS transfers

Per Transaction unlimited Rs.25,000 Rs.5,000
Per Day unlimited Rs.50,000 Rs.5,000
Per Week unlimited Rs.2,00,000 Rs.20,000
Per Month unlimited Rs.5,00,000 Rs.50,000
No. of txn per day unlimited 100 5
Launching of “Chillr Mobile App”:
 Chillr is a smartphone application that enables easy, secure and immediate transfer of money
between its registered users. Users can transfer funds to other Chillr users and also request money
from them. It uses the immediate payment services (IMPS) of NPCI as backbone to Transfer funds
immediately.

 To start using Chillr, customer's bank account must have mobile banking activated with IMPS
facility. User will require his/her Bank of Baroda Mobile banking MPIN to transact using this
application. After registration, Chillr application is directly linked to the Bank account where the
customers' Mobile no. is registered and Mobile banking is activated.
Main Features of the product are as under:

 Customers can send money through Chillr mobile app to both partner and non-partner Bank
customers.
 Currently our Bank and HDFC bank are partner banks. Non-partner bank Customers can only
receive funds.
 Only the mobile number of the beneficiary in the remitter's phonebook is needed. Application
enables customers to send money to any registered Chillr user on phone Contact list.
Scenarios where the application can be used:

 Person to person (P2P) money transfer
 Split bills amongst friends
 Check account balance
 View transaction history
 Request money from friend
 Pay at stores & to online merchants through Near Me.
 Mobile recharge and bill payment (will be launched shortly)
 At one time, only one instance of the Chillr Application related to a particular mobile no. and device
no. can be used.
 The IMEI device no. will be stored by Chillr. No passwords are stored on the phone locally.
 Transactions cannot be made without mPIN which is assigned through Bank.
 The minimum amount that can transferred is Rs. 10.
 The maximum amount that can transferred is Rs. 1000 per transaction to other Bank customers.
 The daily limit is set at Rs. 5000
 The app is now available on iOS, Windows and Android mobile platform.
 Utilities bill payment in all three platform is available
Mobile Banking –M –connect+ (Plus):
Presently App is available only for Android Phone. Registration is enabled through Internet Banking and Base
Branch (HDCR in Finacle).
Highlights of M-connect+ (plus):

 New simple and attractive user Interface
 Easy navigations and menu placements
 Access multiple accounts (CC,Loan,PPF,FD,RD)
 360 degree view of customer
 Cash on Mobile( cardless cash withdrwal from any Bank ATM)
 Simple fund transfer to self linked accounts: intra & inter Bank

 Bobcards Payment
 Mark favourite transactions and transact directly from Favourite options
 Graphical representation of mini statement
 Updated transaction history
 Updated beneficiary and MMID management options
Eligibility to avail M-connect+:
Types of accounts eligible:
Account Type Mode of Operation Rights

Savings (SB) Including zero balance accounts Self, E (or) S View +Transaction
(Debit, Credit)
Current (CA) Self, Sole Self View +Transaction
proprietorship (Debit, Credit)
Overdraft (OD) [General, OD against Self View +Transaction
own deposits(FD/RD), (Debit, Credit)
OD against LIC / NSC
/ KVP, staff OD]
Cash Credit (CC) Self View + Credit
Term Deposits Self, E (or) S View only

a. Fixed Deposit (FD)
b. Recurring Deposit (RD)
Loan (LAA) View + Credit
Public provident fund View + Credit

(PPF)
Baroda M-Clip- Bank’s Mobile Wallet:
 Bank has launched its Mobile Wallet- “Baroda M-clip” on 18th July 2016.
 This is simple, secure and easy to use mobile application for Online Purchases, Person to Person
(P2P) fund transfer, mVisa (QR code base payment), Recharge transactions etc.
Eligibility:
 Available for both, Bank’s customer as well as Non-Customers
 For Bank’s Customer a KYC wallet will be created with maximum limit of Rs. 50,000 and for Non-
Customers, a limited wallet will be created with upper threshold of Rs. 10,000.
 For creation of KYC wallet, user shall load money (for the first time) in wallet using Bank of Baroda
Debit Card. In future, provision would be made to top up wallet from Bank’s netbanking, IMPS etc.
In case of Non Customer, money can be loaded from any bank’s Master/Visa Debit, Credit or Prepaid
Cards.
Availabilty:
Baroda M-Clip is available on Google Play store.The application is compatible with phones having
android version 4.0 or later.
Features:
1. Person to Person (P2P) fund Transfer- can transfer funds to any other person using beneficiary
mobile number or email id.
2. Mobile/DTH/Data Recharge- can perform recharge for mobile, DTH and Data cards.Bill payment
facility for post paid mobile also available.
3. Shopping- can shop at various merchants displayed in Baroda M-clip.
4. mVisa(QR code based)- enable users to complete QR code based payments in 3 simple steps viz.
scan merchant QR code, enter amount and pay
5. Manage cards- can link their existing Visa/Mastercard debit, credit and prepaid cards.
6. Virtual Card- a virtual card gets created within wallet for every user after loading the money.The
card no., expiry date and name are displayed on the card facia and CVV is displayed on the back side
of the card
7. Offers- Presently 50% cash back on Tata Sky rechargethrough mVISA is being offered.
8. List of some key merchants enabled on mVISA are as follows:

a) DTH: Tata sky
b) Billers: Idea Cellular, ACT wireless, SBI Life
c) Utility: Bescom ,Reliance Energy
d) QSR: Pizza Hut and Dominos
9. Baroda M PAY:
UPI: Unified Payment Interface:
 The Unified Payment Interface is allows payments to be initiated by the payer, or by the payee. In
the basic payee initiated flow, the payment request is routed by the initiating application through
NPCI switch to the payer for approval.
 However in certain instances, where it is possible to connect with the payer immediately, it is
preferred that the payee sends a payment request to the payer, who can then initiate the payment
with his credentials.
 This leads to a significantly smoother payment experience. Some examples of these include in-app
payment- where the merchant app, may send the request to the PSP app on the same device,
instead of a collect request via the PSP network.
 Another example may be proximity payments, where the payer and payee are using different
devices, but are close enough for the information to be transmitted locally.
Example: DTH Payment from Home:

1. Sunil subscribes to DTH in his house and wants to make a payment for on demand subscription.
2. Sunil selects the channel and clicks “Buy Now”.
3. DTH shows the details along with a QR Code for UPI payment.
4. Sunil opens his UPI application on his mobile and scans the QR code on the TV screen.
5. UPI application takes him straight to pay screen with all values pre-populated from the QR code
which contained the standard UPI link.
6. He verifies the info on screen and click pay to complete the payment.
7. He gets a confirmation on his mobile and the TV channel is automatically turned for him to view.
Account opening kiosk:

 Customers Can Open Account In Just 10 Minutes
 Customers Can Get Their Debit Card Instantly.
10. Cash Recycler Machines (Cash Deposit + ATM Functions)
Salient functionalities available in Cash Recyclers are as follows:
Cash Deposit with Card Transaction:

 Daily transaction limit for account without PAN (Permanent Account Number) registered in CBS
is Rs. 49,900/-. There is no restriction on number of transactions of cash deposit till daily limit
of Rs. 49,900/- is reached. This limit also includes the cash deposited over the counter at the
branches.
 Daily transaction limit with PAN registered in CBS is Rs. 2,00,000/- without any restriction on
number of transactions. This limit also includes the cash deposited over the counter at the
branches.
Cash Deposit without Card Transaction:
Cash Recycler machine facilitates customer to deposit the Cash in Savings / Current / Cash Credit /
Overdraft account by giving the account number (Card-less Transaction), where per transaction & per
day limit is of Rs. 20,000/- subject to daily transaction limit without PAN (Permanent Account Number)
registered in CBS of Rs. 49,900/-.
Cash Withdrawal:
 This facility is exactly like ATM operations and available with Debit / ATM Card only. The Cash Recycler
dispenses cash deposited by customers using Cash Acceptor facility.
 Other Bank customers having Debit / ATM Card can also use Cash Recycler for Cash Withdrawal
only.
 Maximum cash withdrawal limit per transaction for our Customer is Rs. 15000/-, however per
day Cash withdrawal limit is as per the variant of Debit Card.
11.Multi Function Kiosk (MFK):
 Multifunction kiosk is a new “Self Service Machine” and our bank is one of the first banks to introduce
this in the Banking Industry.
 It looks like an ATM but has more functionality to it.

 It is similar in shape and size to an ATM.
 It is a new initiative to optimize machine utilization.
 It’s a touch based, icon driven machine
Functionality:
 Cheque Deposit facility with CTS Interface
 Bill payment facility for our Debit Card and Net Banking Customers
 Browser based Internet Banking
 Non Cash/ Enquiry services Balance Enquiry, Mini Statement of Account,Branch Locator
Benefit to Bank
 Reduced branch visits of customers
 Machine utilization is increased as one machine provides the facilities that were earlier provided
through multiple machines
 Automation of the process of depositing a cheque
 Cheque clearing process is automated, no need of manual data entry at branch level
Self Service Passbook Printer (SSPBP) – Introduction of new feature for “Self mapping of
subsequent passbook”:
To improve customer convenience and to reduce workload of staff to map subsequent passbooks, ¯Self
mapping of subsequent passbook” feature is now enabled in SSPBP. Details of this facility are as under:
1. Customer is issued the first SSPBP passbook from the branch counters after mapping the passbook serial
number with account number by branch staff (no change in current process).
2. Thereafter, customer prints passbook using Self Service Passbook Kiosks. On completion of the
passbook, system prompts customer to collect fresh passbook from branch for continuation. System will
provide 45 seconds to insert new passbook for auto mapping.

3. If customer inserts new blank passbook within 45 seconds, system automatically maps the serial number
of the blank passbook with customer‘s account and deactivates the old passbook.
4. If customer is not able to insert the blank passbook within 45 seconds (primarily when he/she has to
collect blank passbook from branch) then the system returns to home screen. In that case, for mapping
of subsequent passbook, customer is required to first insert the old passbook. System will prompt
him/her to insert the new blank passbook and machine completes the mapping.
12. Baroda e-payment Gateway:
 Internet Payment Gateway (IPG) is a payment and settlement infrastructure which a merchant uses to
collect payment from their customer for online sale of products or services.
 IPG shields the business unit from complex technical infrastructure required for e-commerce business.
It provides necessary access to payment system including Interchange agencies like Master/Visa, card
issuing bank, settlement bank etc.
 Internet Payment Gateway is essential for retailers, who have an online presence and are interested in
selling their products over Internet. IPG is safe & ensures encryption of sensitive card information
during secured transmission between customer, merchant and payment processors.
How it works..?
 Operations team has been setup to enroll suitable merchants, provide assistance in configuring secured
access, arrange for day-to-day processing & settlement with Master Card/Visa and carry out associated
reconciliation.
 Software installed at merchant site, will enable them to track transactions and generate reports at their
end
 Merchant will get payment on the next working day in their designated account
 Facilitate our merchants to securely accept payment, for their online/web based sale, using
Credit/Debit cards
 Accept Master Card/Visa credit/debit card issued by any institution Merchant instantly gets confirmation
of the receipt of payment. Based on that, goods/services can be delivered to consumer
 Implemented latest industry standard security features viz. Verified by Visa, Master Card Secure Code,
two factor authentication, 128 bit SSL, continuous monitoring of server for vulnerability etc.
Benefits of Baroda e-Gateway for customers

 Merchant is shielded from installing and maintaining complex payment gateway technology and
interacting with payment systems.
 Payment is received on the next working day in merchant designated account.
 Merchant can view/print their transactions.
 Simple interface with bank’s system. If needed, support would be provided to configure the access.
 Consumer is assured of safety of their card details/usage. In addition, they get convenience of
purchasing goods/services from the comfort of their home/office.
 Round the clock, hassle free service. Create a tech savvy image for merchant.

Opportunities:
 Fast and emerging market in India, so branches should generate max. leads.
 Few numbers of entrants in the payment gateway sector.
 Flexible price structure that can be improved on the basis of transaction volume and business
association.
 Ability to move into new market segments that offer better profits.
13. Baroda Demat Services
 The Depository system was introduced in India more than a decade back. Today the word "Demat" is
well known and most of the investors are conversant with the dematerialization of securities like
shares, bonds etc. Dematerialized account is required for holding securities.
 The functioning of the demat account resembles a typical saving/current account wherein we can make
to and fro transfer of securities.
 Presently, there are only two depositories functioning in India and they are:-
1. National Securities Depository Limited (NSDL)
2. Central Depository Services (India) Limited (CDSL)
 Financial Institutions, banks, custodians and stockbrokers complying with the requirements prescribed
by Securities & Exchange Board of India (SEBI) can be registered as a Depository Participant (DP). For
trading in the equity market in India we need to have a demat account.
Benefits which encourage us to have a demat account:
1. We can buy and sell shares and stock of any company listed on the stock exchange of India i.e.
NSE and BSE
2. Make on line investment in mutual fund.
3. Apply in IPO
4. Trade in Futures and Options
5. No threat of loss of shares due to faulty/bogus/forged delivery.
6. Dividend and issuance of bonus shares are directly credited into linked accounts and demat
accounts respectively.
7. No share transfer fees or stamp duty.
8. Application can be made vide facility of ASBA (Application Supported by Blocked Amount) wherein
amount does not get debited into the account and is remitted only when shares are allotted.
A DP ("Depository Participant") is an agent of the Depository (NSDL or CDSL) who is authorized to offer
depository services to investors. Thus to open a Demat account of an investor, a bank or its branch has to get
registered as a DP of a depository i.e. NSDL or CDSL or both.
Bank of Baroda is a DP of both the depository i.e. CDSL and NSDL.

Centralization of DP (Depository Participant) Operations in our Bank:
 To have a better control & to consolidate DP operations and make available the facility to a large
number of branches, our bank, under technology enabled Business Transformation Programme, has
implemented a centralized DP operations by migrating different DP’s and their data to a centralized set
up and link up identified CBS branches in India to this centralized set up.
 This approach has enabled Bank to offer Depository services to customers across large number of CBS
branches.
 CDSL DP from Capital Market branch, Baroda has since been shifted to following location and the
centralized set up, named as Central Back Office-DP Operations (CBODPO), has commenced its
operations w.e.f. 15/01/07. From 19.02.2007, data pertaining to NSDL DP at PBB, Mumbai branch has
also been migrated to CBODPO.
 Now all the branches previously offering DP services have shifted operation to Centralized DP being
managed from the following address:
Bank of Baroda,
Baroda Sun Tower,
D.O.T. (Demat operation team)
Central Back Office DP Operations (CBODPO)
Ground Floor, C-34, G-Block
Bandra Kurla Complex, Bandra East,
MUMBAI- 400 051
Tel: 022 6698 4935, 4921, 4936; 6698 4934 (Fax)
e-mail: demat@bankofbaroda.com
 The facility to open a Demat Account is rolled out to identify CBS branches in India through web-based
application named DEBOS.
 The CBODPO operates as "Back Office" through the said web based application DEBOS. This
application has been enabled at the identified CBS branches in a phased manner and such CBS
branches act as "Front Office" for opening Demat accounts and for providing various other Demat
related services to our customers/investors.
 At present, more than 1000 CBS (Core Banking Solution) branches in India has been enabled for
offering DP services of CDSL/NSDL. This network is proposed to be progressively increased.
14. Baroda e-trade (OLT):
Our bank has launched “Baroda e-trade”, an on-line trading facility in July 2012 in association with
BOBCAPS Ltd. our subsidiary. OLT is the state-of-the-art on-line securities trading platform for the Bank’s
customers. The on-line trading platform ‘Baroda e-trade’ is powered by a robust trading engine coupled with
a comprehensive suite of products and services.
Since it comes with an in-built configuration with proactive approach towards customer service, we aim to
provide a constantly delightful trading experience to our customers through this product.
Any customer or non-customer, who wants to avail of OLT would be required to have/open the following 3
accounts.
 Bank account, i.e., Savings Bank/Current Account with any of the branches of the Bank,
 Demat account with any of the Depository designated branches of the Bank, and
 Trading Account with BOBCAPS LTD.
Salient Features:
 Seamless (3-in-1) trading experience (Savings bank/current, Demat and online trading accounts)
Savings bank/current and Demat accounts with Bank of Baroda and trading (OLT/Broking) account
with BOBCAPS ltd.
 Account opening form for trading account, to be submitted to Demat designated branches for onward
submission to BOBCAPS LTD.
 Instant fund/share transfer facility through lien marking.
 Multiple market watch facility with streaming quotes( Live markets rates)
 Customization of screen to show critical market information such as market depth, Most active scripts,
Top Gainers/Losers.
 Works with low internet bandwidth.
 Customers could review their margin status, Holding report, order and trade Book on a real time basis.
 Single window order entry with instant order confirmation.
 128-bit encryption security certified by entrust SSL.
 Telephonic assistance through centralized Helpdesk Telephone No.022-61389300 (9am to 5pm).
15. Contact Centre:
Bank has established Two Contact Centres at Baroda and Lucknow.
Contact Centre Numbers:

 Toll Free Number 1800 22 33 44 or 1800 102 44 55 from anywhere in the country
 The dedicated toll free number for providing contact centre services for Financial Inclusion/Pradhan
Mantri Jan Dhan Yojana (PMJDY) customers is 1800 102 77 88
Availability of Contact Centre Services: Services through IVR by using TPIN Round the Clock
Services Provided:
1. Through Agents:
 Account Enquiry of linked Accounts
- Balance Enquiry
- Statement
- Transaction Status
 Cheque Services in operative Accounts
- Stop Payment
- Status Enquiry
- Cheque Book request
 Debit Card Services
- Blocking of Card
- Request for regeneration of PIN
- Request for reissuance of Debit Card
- Complaint of Debit Card Failed transaction
 Baroda Connect
- HelpDesk
- Activation of Password
- Regeneration of password
- Complainton failed transaction
 Mobile Banking
- General Queries
- Resend link / PIN
 General Enquiry
- Products & Services
- Branch & ATM Location
- Interest Rate and Forex rates
- Lead creation
- Wealth Management Product
2. Through IVR (Interactive Voice Response):

 Account Information –Transaction details, Statement through e-mail
 Cheque Related Service – Cheque Status, Stop payment of cheque, Cheque book request
 Change TPIN
 Loan and Deposit Account Services – Loan account inquiry, Loan account statement request,
Deposit account inquiry
 General Information Menu – Deposit & Retail Loan ROI, Forex rates, Branch/ ATM locator.
3. Through web-chat:
- This service is only for general queries and any information which requires disclosure of any personal
/ account information is not provided through this service.
- Presently this service is available in English only.
Eligibility for Contact Centre Services:
 All customers of the Bank can avail the services of Contact Centre.
 Members of general public can also call the contact centre or use the web chat services and avail
enquiry services related to Bank’s products and services.
 Customer holding an account such as SB,CA,CC or OD, shall become eligible for availing the Contact
Centre Services.
 The identification and verification of customer, as described hereunder, is mandatory before providing
such services
Caller Identification:
Account number is used as “Caller Identity”. By entering the account number, the caller is identified as
the primary account holder. Non-customer / general public need not enter any account number.

Caller Verification:
The TPIN (Telephone Personal Identification Number), a four digit numerical password, is used as a
security verification code for verifying the caller (Account holder). The caller will be required to enter
the TPIN. In case the customer does not have a TPIN, he / she can be verified through a “Session
Verification” process.
Session Verification:
In case a customer does not have a TPIN, the customer will still be able to avail the Contact Centre
services through an alternative process – “Session Verification”, as described hereunder.
 The customer enters the Account number in the IVR
 Undergoes a verification process, wherein a few questions, related to customers and / or account, will
be asked.
 Contact Centre agent verified the answer given by customer through data available in CBS.
 If the customer provides correct answers for the above questions, then the customer will be considered
as verified.
 In the above process, the caller needs to provide his / her name as appearing in the account.
 In case the caller is calling in any capacity other than self (proprietor, partner, director etc.), the name
of the caller will be verified with the names available in the related account in CBS in relevant capacity.
 If the name is not available or does not match with the names available in CBS, then the caller will not
be allowed to proceed further.
TPIN generation Process:

 Customer calls Toll Free Number thru his/her Registered Mobile Number
 Customer enters A/c Number
 Agent asks certain security questions relating to CID and account of customer
 Customer provides answers to such questions, If responses are right
 Agent transfers the call to IVR, where customer chooses his TPIN,If responses are wrong
 Customer is advised to call again with details.
Eligibility for TPIN:
All operative account holders SB, CA, CC or OD are eligible to obtain the TPIN as detailed below:
 At present, TPIN is issued to the primary account holder (Primary Customer ID). With this TPIN, the
lined accounts, under the same customer ID can also be accessed.
 At present the TPIN is issued only to customer having mode of operation “Self”, “Karta of HUF” or
“Proprietor”.
Benefits to the Customers:

 Most convenient delivery channel
 Services are available from -6_am to _10_ pm
 365 days a year, (excluding Independence Day and Republic Day)
 Free of Cost. Toll Free Number and hence No Cost
 TWO Toll Free Numbers are available to ensure uninterrupted service
 Customers are not required to visit branch for any services.
 Emergency Services – Debit Card Hot-listing – is easy, simple, authentic
 All service requests are supported by Docket Number, for further enquiry.
 Services for all linked accounts are available
 Professionally managed and Technology driven services
 Free of cost.
 Customer can save time and money as they do not have to visit branch for their routine queries/
services related to Bank’s products and services.
 Round the clock availability of IVR services and availability of agents’ services for extended working
hours i.e. 6 AM to 10 PM.
 Services of all linked accounts are available.
 Professionally managed and Technology driven services.
Benefits to the Branches:

 Contact centre helps branches by providing customer service over PHONE without intervention of
branches.
 Provides information on routine queries such as – Account Balance, transactions, cheque status,
product enquiry, interest rate enquiry, gold rate enquiry, etc. instantly.
 Provides guidance to customers on Baroda Connect services. It can also (a) activate passwords & (b)
take request for regeneration of passwords.
 Stops the payment of cheque and can take the request for issuance of cheque book in respect of RBO
covered branches.
 Hotlists the Debit Card and takes request for reissuance of PIN or Debit Card.
 As the Contact Centers will be able to address most of the common ‘queries’ and ‘service requests’,
Branches will be relieved from such workload and would be in a position to focus their attention more
for business promotion / development.
 Further, Bank proposes to extend functions like (a) Registration of Debit Card related complaints (cash
not dispensed), (b) outbound recovery calls, and (c) outbound sales calls. The contact centre will work
as extended arm of the branch facilitating marketing and sales of the bank’s various products.
16. Baroda Mpassbook:

With a view to provide the complete account information in a separate app with enhanced user interface and
ease of accessibility, bank has implemented a new Informatory App in Android Platform christened as
“Baroda mPassbook”.
MPassbook is a mobile application on mobile device which shows all the account related details of the
customer available to him through his account passbook on mobile phone app in a Smartphone. The main
feature of Baroda mPassbook is that the customer is provided with the account passbook on his mobile
handset. Whenever application is opened it synchronises and updates all the latest transactions of all accounts
of the customer.
The features available in the mPassbook application are:
 App is available in both Hindi and English Languages
 Transaction and account details stored on the mobile arranged in the chronological order for all the
accounts linked to the registered mobile number with the Bank.
 Customer can set his MPIN after OTP verification
 Customer can select the period of months for which the data can be stored in the app.
 Search transaction history by transaction date, transaction amount
 Personalise / add remarks of choice to the transactions, which can be used to track the transactions on
later date.
Presently this facility is enabled for Savings and Current account holders and the App is made available in
Android platform.
To avail this service, customer is required to download the app from the Google play store and install the
same.
17. Mobile OTP Application (M-OTP):

 In compliance with regulatory guidelines, as also to enhance security features of Baroda
Connect, two factor authentications were implemented in our Net Banking Portal since June,
2012. Authentication by way of OTP through SMS is one part of security process, which is
triggered by the system to validate the user/other credentials, if the system suspects unusual
activity/ behavior or non-registered PC.
 To obviate the issue of delivery of SMS, our IT team has enabled OTP application on mobile
handset supporting Apple, Android, Windows and blackberry.
 Activation of this application will involve two steps as under:
 Downloading of Mobile OTP application ―ARCOT OTP‖ on handsets Users are required to download
the application from respective app stores. However this requires subsequent activation through
their Net banking portals.
 Activation of Mobile OTP: Users can themselves activate M-OTP facility through Baroda Connect.
After logging-in, users are required to click ―Mobile OTP Application‖ link under ―Services‖ tab at
home page.
 Key features of this new functionality are as follows:
 This will help the users to manually generate the OTP on their mobile handset without using
GPRS/internet service.
 Generation of manual OTP will be protected by PIN set by the user.
 If User wishes to deactivate this facility, then the same can be done by clicking on the 'Mobile
OTP deactivation' link in the ―services‖ Tab of Baroda Connect and will start receiving the OTP
by SMS on registered mobile number.
 It will enable all the users to get the OTP generated within the time frame, without any delay.
 This functionality will be specifically beneficial to NRIs/ Customers frequently visiting overseas,
facing issue of OTP over SMS.
18. “Missed Call” facility- Balance Enquiry/Mini Statement:
To further increase the scope of Missed Call Service, it has been decided to add Mini Statement functionality
through easily recollectable numbers and accordingly, Bank has procured following distinct numbers –
Used for Service Service Provided for

Missed Call Number
8468001111 Balance Enquiry Balance of all A/cs ( Max 10 A/c)
Mini statement of account
8468001122 Mini Statement
preferred by customer
1. This Facility is available 24x7.
2. Balance of account under Saving, Current, cash Credit and Overdraft schemes are provided through
this facility.
3. Customers can use this facility -5- times in a day, System will not respond thereafter.
4. Customers do not have to pay any charges as the call would be disconnected after a ring and
customer would get the balance via SMS.
5. The existing number 9223011311 is discontinued from 30.09.2016.
Process in Brief:
1. Customer calls the above said numbers for specific service.
2. System will disconnect the call after one ring and then validate that the call is from Registered Mobile
Number of customer and forward the response SMS.
3. In case of multiple accounts with same mobile number, system checks whether customer has
registered preferred account number. In case customer has not registered preferred account number,
a SMS will be send to customer to register his preferred number to avail the account specific services.
4. Customer can registered preferred account number by sending a SMS “REG <Last 4 digit of account
no.” e.g. REG 0811 to 9176612303 (Normal Charges) or to 5616150 (Premium Charges). Customer
can change preferred account number at any point of time by sending SMS to registered another
account number as preferred account number.
5. In case of multiple accounts with same mobile number, if customer has not configured his/her
preferred account then customer can avail only balance enquiry service.
6. In case the mobile number is not associated with any account under permitted scheme type then no
SMS will be sent to the customer.
7. TAT for the mini statement service would remain same as per the current arrangement.
8. With addition of mini statement it is decided to reduce the number of time customer can avail Balance
Enquiry services through Missed call from 5 to 3. Mini Statement will be available once in a day only.
19. SMS Banking:
A SMS to be sent from their registered mobile number to 5616150 or 9176612303.
Salient features of the facility are as under:-

 Through this facility customers can
 Enquire Balance in their accounts
 Receive Mini statement
 Know status of their Cheque (paid or unpaid)
 Link their Aadhar number with their accounts
 PMJDY OD request through SMS
 Debit Card Blocking through SMS
 Customer has to send a SMS text as under:

 For Balance enquiry - BAL <space> last 4 digit of account number
 For Mini statement - MINI <space> last 4 digit of account number
 For Cheque status - CHEQ <space> last 4 digit of a/c no <space> cheque no
 For Aadhar seeding - UID <space> 12 digit aadhar number <space> last 4 digit of
a/c no
 For PMJDY OD request- SMS <ODREQ y> to 5616150
 Debit Card Blocking- BLOCK <space> <C> <space> <Last 4 digit of card no
- BLOCK <space> <A> <space> <Last 4 digit of a/c no
- Block All/ Block Help
 This facility is available 24X7.

 Balances of account under Saving, Current, Cash Credit and Overdraft schemes are provided through
this facility.
 There is no restrictions as to how many SMS can be sent by a customer in a day.
 This service is available only for resident accounts i.e. accounts with domestic mobile number only. In
other words, customer with overseas country code /mobile number will not be sent any SMS.
 Charge of Rs. 3/- per SMS will be applicable for SMS sent to the number 5616150 and normal SMS
charge will be applicable for SMS sent to the mobile no 9176612303
Recovery of SMS alert Charges:
Looking to cost involved in sending SMS alerts to Customers, Bank has decided to recover following charges
from customers w.e.f. 01.10.2016 –
 Saving Bank accounts : Rs. 15/-+ Taxes per quarter
 Current/CC/OD accounts : Rs. 25/-+ Taxes per quarter
 The amount would be deducted at the beginning of the quarter
Mandatory SMSs (as per RBI Guidelines): charges free:

 All transactions irrespective of amount, involving usage of cards at various channels i.e. ATM, POS, e-
commerce, Wallet etc.
 Hot listing of Debit card and the notification to that effect.
 Alerts to drawer when cheques are presented / received in clearing.
 Notification to the customers in respect of re-presentment of cheques returned for technical reasons
SMS Charges Exemption Categories:

 Basic Saving Bank/FI/PMJDY customers
 Super Saving/CA Premium/CA privilege customers
 Staff Members (including ex-staff members)
Option for Subscription/Un-subscription:
 Branch can Subscribe or Un-subscribe the customer account for optional SMS alert facility after
obtaining application from the customer. For this purpose a new menu “SMSCHG” is provided in
Finacle.
 By sending SMS to 9176612303 (Normal charges applicable) or 5616150 (Premium charges
applicable) in the following format -

Un-subscribing SMS alert facility
DEACT <Last 4 digit of account number> Example – DEACT 0811
Subscribing SMS alert facility (for A/c where customer had unsubscribed the
facility earlier)
ACT <Last 4 digit of account number> Example – ACT 0811
 Confirmation will be sent to customers after subscription/un-subscription in the following format:

Message for Un-Subscription “Your request for de-activation of SMS alert service is successfully
processed”.
 Message for Subscription: “Your request for activation of SMS alert service is successfully
processed”.
 Mandatory SMSs will be forwarded in all cases even if the service is un-subscribed by the Customer.
20. Baroda Cash Management System (BCMS):
Cash Management Services is a software application (Cash@Will) that facilitates management of customer
funds, particularly, of corporate customers. Corporate customers with large volumes of transactions are the
target group for BCMS. Baroda Cash Management Services also facilitates Internet Based Transactions.
Operational Model of BCMS is consisting of 3 tiers as listed below:-
1. Data Centre
2. Central Operational Hub (COH)
3. Identified BCMS Branches / City Back Office / Service Branches
BCMS has three fund management modules, viz., Collection, Payment & Liquidity Management and a front-
end interface available to the customer through the Internet.
1. Collection Module– The Collection Module handles all inflow of funds in customers’ accounts, which
can be by way of -
 Cash Deposit
 Proceeds of local cheques
 Proceeds of outstation Cheques
2. Payment Module– This module handles the outflow of funds by way of -

 Direct Debit Instructions (DDI)
 ECS – ECS-debit
 ECS – ECS credit
 Issuance of DD / BC
 Payment through RTGS / NEFT
 Issuance of DW
3. Liquidity Management Module–

 This module facilitates sweeping of funds from various accounts of the customers and pooling
them in a single account called ‘Concentration Account’. The funds available in this account
help the customers in online decision making.
 The Liquidity Management Module also facilitates funding of various accounts as per the
requirement of the customers out of the balance available in the Concentration account.
 The Liquidity Management Module facilitates both sweep-in and sweep-out from the
Concentration account.
 Post dated Cheque Collection
 Invoice management
21. Baroda Easy Pay:
"Baroda easy Pay" is an electronic bill presentment and payment service launched by the Bank in
association with "Bill Desk", a well-known technology and payment service company. It is transaction based
internet banking service for customers of Mumbai CBS branches.
This service is providing two types of services to the customers:

1. Bill Pay – Presentment Type Biller
2. Direct Pay – Payment Type Biller.
“Baroda easy Pay” is a-payment service for the Internet Banking customers of our Bank. With the
introduction of “Baroda easy Pay” service the Internet Banking customers of our Bank can makepayment of
their utility bills, insurance premium, subscription for books / magazines,book air tickets, make donations and
charity on line..
Advantages to Customers:
 No more visits, queues and waiting at branch
 Facility is available on 24x7 basis
 Can make payment from anywhere
 Ease of operation and convenience
 Can pay utility bills on behalf of the individual, firm or company
 Instant Cyber Receipts for the payment made
 Can View past payments at any point of time
 Baroda easy Pay Service is free of charge
22.Baroda RemitXpress
In keeping with the Bank’s goal of emerging as a true international bank of India, the Bank has launched an
Online International Money Transfer Service – “BarodaRemitXpress”. This product is a unique and robust
online remittance solution from USA, UK and Eurozone.
This online service is bank-neutral, thus not requiring the senders and the recipients to have a bank account
with us. This product is unique as it provides:
 Desktop-to-Doorstep Solution
 Convenience – customer can use any bank in the U.S., U.K. and EURO ZONE
 Cheaper than an International Wire Transfer

 Significantly cheaper than a money-transfer agent
 Quicker than an international check
 24x7 Customer Service
 Global Security Standards - 128-bit encryption
 Online Funds Tracker
 Free Personalized Message
 Minimum 50 USD, GBP & EURO and Maximum 5000 USD, GBP & EURO
 Different Pay modes form sending money to India
US - Online Money Transfer
UK - CIP (Customer Initiated Payment)
EURO - Local Wire
 Customer can send money from over 12,000 US banks and all UK & EURO ZONE banks.
Beneficiary will receive Indian Rupee funds in the form of a Demand Draft. ‘Times of Money’ is
Bank of Baroda's alliance partner for the Baroda Remit Xpress service.
Baroda Rapid Funds2India:
1. The product is introduced to provide easy and hassle-free money transfer service to Individuals-
NRIs/PIOs & Corporates (for remitting salary payments to their employees) to remit the fund in
India from UK, UAE and Oman Mauritius, Seychelles, Botswana, HongKong, Fiji, Ghana, Kenya,
Guyana, South Africa, Tanzania, Uganda and Trinidad & Tobago.
2. Where the accounts of the beneficiaries of remittances are maintained with other banks' branches
in India, which are RTGS/NEFT-linked, the credits are effected within 24 hours.
3. Instant credit to the beneficiary's account with Bank of Baroda branches in India under the CBS
network.
4. Trade related payments are not allowed.
5. No minimum/maximum amount for money transfer.
6. Using RTGS platform if beneficiary has account with other bank.
7. Free remittance if both the remitter & beneficiary are maintaining a/c with us.
Baroda Flash Remit:
1. It is the inward remittance facility introduced for NRE customers in partnership with UAEECL (UAE
Exchange Centre LLC).
2. Remitter with visit any one of the branches of UAEECL across the globe of 75 UAE Exchange outlets
of 32 countries.
3. Presently there is a ceiling of Rs.2,00,000/- per remittance by a sender per day, Trade credits are
not allowed and Following permitted transactions are allowed under this remittance facility:
 Credit to Non Resident (External) Rupee A/cs
 Payments to families of NRIs
 Payments in favour of Insurance companies, Mutual Funds and the Post Master for
Premia / investments

 For investment in shares and debentures
 Payments to Co-operative housing Societies, Government Housing Schemes or Estate
Developers
 for acquisition of residential flats in India in individual names by NRIs
 Payment of tuition/boarding, examination fee etc., to schools, colleges
and other educational institutions
 Payments to hotels by NRIs for their stay
 Payments to medical institutions and hospitals in India, for medical treatment of
NRIs/their
 dependents and nationals of all FATF
 Payments to utility service providers and tax payments in India
 EMI payments in India to Banks and NBFCs
 Any other transactions allowed by RBI in future under Rupee Vostro A/cs of Non-Resident
23. Biometric Cards /ATM:
 Biometric cards authorize transactions based on the customers’ biological attributes. It could
range from fingerprints to voice to iris of the eyes. It is especially useful for those who are
illiterate or not familiar with the language used by the ATM to conduct transactions.
 For example, in case of a fingerprint; a fingerprint does the job of a Personal Identification
Number (PIN) which is a unique number that each customer has to punch in the ATM to
conduct any transaction. Instead of typing the number the person has to merely press his /
her finger (usually the thumb) in the slot provided for fingerprint identification.
 The biometric ATM card typically contains a smart chip, which carries biometric information,
personal details as well as the photograph of the account holder. Biometric ATM works on
identification of finger prints supported by voice prompting in local language.
 The key features of biometric ATM are – use of finger impression in place of PIN, voice output
for people who cannot read, colour codes available for different amounts, fixed amount
facility, no keyboard etc.
 Our bank’s first biometric ATM was installed at Gandevi, Gujarat.
24. Cheque Truncation System (CTS):
 A working group under the chairmanship of Shri D Burman had recommended the concept of
Cheque truncation to replace the physical movement of cheque by the image of the cheque.
 Truncation is the process of stopping the flow of the physical chequeissued by a drawer to the
drawee branch. The physical instrument will be truncated at some point en-route to the
drawee branch and an electronic image of the cheque would be sent to the drawee branch
along with the relevant information like the MICR fields, date of presentation, presenting
banks etc.

 Thus with the implementation of cheque truncation, the need to move the physical
instruments across branches would not be required, except in exceptional circumstances. This
would effectively reduce the time required for payment of cheques, the associated cost of
transit and delay in processing, etc., thus speeding up the process of collection or realization
of the cheques.
Benefits:
 Faster clearing cycle
 Better reconciliation / verification process
 Better Customer Service & Enhanced Customer Window
 T+ 0 for Local Clearing and T + 1 for inter-city clearing.
 Elimination of Float. Incentive to shift to Credit Push payments.
 The jurisdiction of Clearing House can be extended to the entire country. No Geographical
Dependence
 Operational Efficiency will benefit the bottom lines of banks. Local Clearing activity is a high
cost no revenue activity.
 Minimizes Transaction Costs.
 Reduces operational risk by securing the transmission route.
25. IFS Code:
 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 (ZER0) appears in the fifth position) and
remaining 6 characters to identify the branch.
 IFSC No. for branches of our Bank is BARB0XXXXXX where XXXXXX is for Branch Alpha. But if the
alpha code is less than 6 characters, it should be padded by X after the alpha i.e. if the branch alpha
of our Mount Abu branch is ABU then the IFSC code of this branch will be BARB0ABUXXX.
26. NEFT
 National Electronic Funds Transfer (NEFT) system is a nationwide funds transfer system to facilitate
transfer of funds from any bank branch to any other bank branch.
 The system uses the concept of Centralised accounting system and the bank's account, which is
sending or receiving the funds transfer instructions, gets operated at one centre, viz. Mumbai only.
 In our bank for any individual remittance minimum amount to be remitted is Rs. 1/- and maximum
amount is Rs. 50 crores. NEFT is settled in 12 hourly batches starting from 08.00 to 19.00 on
weekdays and in 6 hourly batches starting from 08.00 to 13.00 on Saturday.
How it is different from RTGS…?

1) NEFT is a domestic electronic payment system (except Nepal) whereas RTGS allows remittance from
abroad also.
2) Minimum Amount in RTGS is Rs. 2 lacs whereas in NEFT it starts from Rs.1/-
3) NEFT transactions are processed in a batch (12 in a normal day and 6 on Saturday) whereas RTGS
transactions are processed on Real Time basis.
4) NEFT transaction can be done by cash also, whereas RTGS can be done account to account.
5) In NEFT if there is incorrect a/c no. amount gets bounce back to remitting branch whereas in RTGS
it remains with the receiving branch.
6) NEFT transaction can be done by cash (i.e. non customers can also avail the benefit of NEFT by
depositing cash up to Rs.50,000/-) whereas RTGS can be done account to account only.
Real Time Gross Settlement (RTGS):
 The acronym “RTGS” stands for Real Time Gross Settlement. An RTGS Payment system is one in
which payments instructions between banks are processed and settled individually and continuously
throughout the day.
 This is in contrast to the net settlements, where payment instructions are processed throughout the
day but inter-bank settlements takes place only afterwards. Payment instructions processed on a
continuous or REAL TIME basis and settled on a GROSS or individual basis without netting the debits
against credits.
 Settlement in “REAL TIME” means payment transaction is not subjected to any waiting period.
“GROSS Settlement” means the transaction is settled on one to one basis without bunching with any
other transaction.
 Payment so effected are final and irrevocable
 Settlement is done in the books of the RBI
 Minimum amount for RTGS transaction is Rs.2 lac and there is no maximum limit for transaction.
 RTGS can be used for Inter Bank as well as Intra Bank transfers.
 IFSC code is required for RTGS transaction and now, it has been mandatory to remit the amount of
Rs.10 Lac and above through RTGS/NEFT.
Timings – Monday to Friday

Customer Transactions R41: 0900 hrs to 1630 hrs
Inter Bank Transactions R42: 0900 hrs to 1800 hrs
Timings – Saturday
Customer Transactions R41: 0900 hrs to 1330 hrs
Inter Bank Transactions R42: 0900 hrs to 1500 hrs
26. NATIONAL AUTOMATED CLEARING HOUSE (NACH)
Features of NACH:
 NACH will allow its participating banks to design their products for their corporate needs.
 This NACH will provide high secure standards to enable quick and reliable transactions.
 NACH has well set management system.

 Payment settlement will be done within the same day.
 Main feature of NACH is it avoids high interchange fees of credit card fees.
 NACH is mandatory and will replace any other ECS format namely Local ECS, Regional ECS and
National ECS.
The benefits of NACH are as follows:
 It allows corporations and consumers to reduce or eliminate the use of paper checks to make routine
payments.
 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.
 NACH would allow transctions to be cleared in real-time mode rather than batch mode.
 Reduction in registration time to just 10 days as against the current registration time of 30 days in ECS.
 This system provides a positive confirmation from customers' bank about registration acceptance or
non-acceptance, unlike ECS.
27. ASCROM:
 ASCROM stands for ‘Asset Classification and Credit Monitoring’.
 ASCROM is user-friendly software for creating Comprehensive Data Base of Advance accounts at all
levels.
 It is a stand alone software which is to be updated every month by every branch by fetching 4 files
and updating in ASCROM software through data lifting option (3 files from Finacle and 1 file from
clorets)
 It enables Recording details to implement BASEL-II (Standardised Approach) as well as facility of
data submission to CIBIL.
Features of ASCROM system

 Early Warning Reports – The system identifies Potential NPAs –3- months in advance along with the
Critical Amount Due (CADU)
 Critical Amount Default (CAD) – The system identifies the Critical Amount in Default (CAD) in NPAs
which must be recovered to upgrade the account to standard category.
 Automatic Asset Classification and computations of provisions as per RBI norms.
 Reports like DSB, BSR (1A & 1B), Lead Bank Returns; Priority Sector returns can be generated.
 Asset Classification Reports in several combinations can be generated.
 NPA Movement Reports for region, state, industry, sector, and activity or in its combination is
available.
 Provides strong base for risk mgt. and data warehousing initiative of the Bank.
 Once the account is upgraded in ASCROM, the same can be upgraded in FINACLE through
BOBMEAC .

28. Digital signature & IT ACT 2000:
 The digital signature is an encryption and decryption process allowing both the positive
identification of the author of an electronic message (Who wrote the message?) and verification
of integrity of the message (Has the message been tampered with during transmission?).
 Encryption is the transformation of information from readable form into some readable form.
 Decryption is the reverse of encryption; it's the transformation of encrypted data back into
some intelligible form.
Information Technology Act 2000:
An Act to provide legal recognition for transactions carried out by means of electronic data interchange and
other means of electronic communication, commonly referred to as "electronic commerce", which involve the
use of alternatives to paper-based methods of communication and storage of information.
The Information Technology (IT) Act 2000 aims to provide a legal and regulatory framework for Promotion of
e-Commerce and e-Governance. IT Act 2000 was enacted on 7th June 2000 and was notified in the official
gazette on 17th October 2000. The Act is applicable to whole India.
The major provisions contained in the IT Act, 2000:

 Electronic contracts will be legally valid
 Legal recognition of digital signatures
 Digital signature to be effected by use of asymmetric crypto system & hash function
 Security procedure for electronic records and digital signature
 Appointment of Certifying Authorities and Controller of Certifying Authorities, including recognition
of foreign Certifying Authorities
 Controller to act as repository of all digital signature certificates
 Certifying authorities to get License to issue digital signature certificates
 Various types of computer crimes defined & stringent penalties provided under Act
 Appointment of Adjudicating Officer for holding inquiries under the Act
 Establishment of Cyber Appellate Tribunal under the Act
 Appeal from order of Adjudicating Officer to Cyber Appellate Tribunal and not to any Civil Court
 Appeal from order of Cyber Appellate Tribunal to High Court
 Act to apply for offences or contravention committed outside India
 Power of police officers and other officers to enter into any public place and search and arrest
without warrant
 Constitution of Cyber Regulations Advisory Committee who will advice the Central Government and
Controller

MICR:
Magnetic Ink Character Recognition technology is very popular world wide and in this system, the instrument
such as cheque, draft, pay order, gift cheque, traveler cheque etc. can be read directly without the need for
transcribing the data on punch cards or paper tapes.
The information is printed on the instrument with special ink, which is made up of magnetic material. On
insertion of instrument in the machine, the printed information is magnetized and read by the machine.
The MICR system is beneficial as the chances of error are minimized, transfer of funds becomes faster,
clearing becomes easy and burden of manual work is reduced.
29.Green Initiative
Guidelines issued by Ministry of Finance for implementation of Green Initiative as under:

1. As far as possible all payments made by the branches including payment for any purchases made by
them should be made by direct credit to the vendors’ account by obtaining the account details,
either through Inter-Sol or by RTGS / NEFT mode of payment as the case may be.
2. All disbursal in loan accounts should preferably be made by direct credit to the supplier /
manufacturer’s account by obtaining the account details, either through Inter-Sol or by RTGS / NEFT
mode of payment as the case may be.
3. All reimbursement of expenses / payment of allowances etc. to the staff should be by way of direct
credit to their accounts.
4. Customers requesting for issuance of DDs may be advised of the facility of electronic transfers and
as far as possible they should be persuaded to use electronic mode rather than the physical mode of
remittance of fund.
5. Customers should be educated to avail the alternate delivery channels (e-channels) such as Baroda
Connect (Internet Banking),Baroda M-Connect (Mobile Banking),Baroda Cash Management, NECS /
ECS – Enables credit / debit transactions etc.
6. In addition to making payments to staff, vendors and clients electronically except for office petty
cash requirement, it is to be ensured that all payments should be received electronically except
when cheques are drawn on banks which are not NEFT/RTGS enabled.
7. To ensure that all payments received electronically, the guidelines further provide for putting
appropriate stipulation /clause in sanction/agreement that banks enter into with such entities
including that the lending /investing institutions can get such entities inspected for compliance of
these instructions. The appropriate condition/stipulation with regard to “electronic payment” is
required to be incorporated in all new/renewed sanctions/agreements.
8. The issue relating to treating the non-compliance of the guidelines by borrower clients as “default “
or Major default” has been taken up by IBA with the Ministry for reconsideration. However,
irrespective of decision on the same, branches shall make all efforts to persuade the borrowers to
adopt electronic system of payment.

9. In case of OBC where physical cheques drawn on other banks are sent for collection, in the
forwarding schedule branches should invariably mention that proceeds should be remitted by RTGS/
NEFT only.
10. No post dated cheques should be accepted in case of sanction / review of loan.
30. Core Banking

From a business perspective Core Banking relates to the basic business of a bank or financial
institution. That, in a nutshell, is taking deposits (liabilities) from customers and lending (assets) to
customers. While doing so, ensure that profits are generated for the bank / financial institution.
From a technology perspective, Core Banking is the short name for a Core Banking System that a
bank has to deploy in order to perform its Core Banking Business.
In short, implementing a system that will help the bank take deposits and lend to customers in a
profitable manner.
Why it is called Core Banking?
The reason for calling it Core Banking is the fact that a Core Banking system, after deployment, is the
heart or the core of the bank / financial institution. All entities that form part of the eco-system of the
bank / financial institution interact with it. These entities are
 Bank employees – H.O., Corporate Office, Zonal Offices, Regional Offices, Branches, etc. (both
users and technical staff)
 Bank management – Executives / Managers at respective locations, head office, regional
offices, branches, etc.
 Bank customers - personal banking, corporate banking, international banking, etc.
 Bank auditors – internal and external auditors who need to verify systems and procedures
 Bank regulators – mandatory reporting to central bank and other financial bodies
 Bank shareholders – providing the desired return to shareholders from banking operations.
Ingredients that constitute Core Banking:

There are 5 key ingredients that form part of the Core Banking system. These are the essential
building blocks for the entire bank / financial institution.
1. General Ledger
2. Customer Information System
3. Deposit system
4. Loan System
5. Management Information system (MIS)
Benefits of CBS to the Customer:

1. The customer will be of Bank and not of a branch.
2. He can access his account from any CBS Branch, through Internet from any part of the world.

3. He can operate his Bank account/s on 24X 7 basis, from anywhere.
4. All information about the account is available on real time basis online.
5. Huge savings of time and cost as far as obtaining various information is concerned
6. Better fund management without paying any thing extra thereby saving the cost.
7. Can transfer the funds between accounts without any intervention or support from bank’s officials.
8. Can avail the benefits of technology driven products through CBS
9. Customer will get one unique customer ID. He can subsequently enjoy various types of deposits
and loan products by attaching the customer ID across the bank without passing through the
same cumbersome procedure of account opening.
10. Banking will be pleasing and relaxing as the customer can access the account as per his choice
and convenience.

GENERAL
KNOWLEDGE

Awareness about the Bank
Our Mission:
Glorious Past:
 Bank of Baroda made a humble beginning on 20th July 1908 as Bank of Baroda Limited and was
registered under the Baroda Companies Act of 1897, with a paid up capital of Rs. 10 lacs. Ruler of
erstwhile Baroda State, His Excellency Maharaja Sayajirao Gaekwad-III founded the Bank.
 Bank of Baroda has completed long, eventful and glorious journey of more than 108 years. . Soon after
establishment, the Bank extended its operations to three other commercial centres of Gujarat namely,
Surat, Mehsana and Navsari.
 In 1919, the Bank crossed the state frontiers by setting up Mumbai Main Office. In the year 1935 Bank
became a scheduled Bank. RBI included the Bank in the second schedule of RBI. The first safe deposit
lockers were provided at Baroda in 1939.
 At the time of independence in 1947, Bank of Baroda was a regional bank with 48 branches. However,
it found a place in India’s ‘Fortune Five’ list of Banks. During 1953 – 1958, Bank opened 30 new offices
and had become an all-India Bank. As many as eleven banks have merged with Bank of Baroda during
its journey so far.
Our Logo:
 Bank introduced the existing logo “Baroda Sun” w.e.f 6th June, 2005.
 It comprises double ‘B’ letter forms that hold the rays of the rising Sun, we call this as “Baroda Sun”.
The sun is a representation of what our bank stands for. It is a symbol of dynamism and optimism.
 The sun is the single most powerful source of light and energy. Its far reaching rays dispel darkness to
illuminate everything they touch.
 The single colour, compelling vermillion palette indicates hope and energy and indicates that at Bank
of Baroda, we seek to be the source that will help all our stakeholders realise their goals.

 To our customer, we seek to be a one stop, reliable partner who will help them to address different
financial needs. To our employees, we offer rewarding careers and to our investors and business
partners, maximum return on their investment.
Organizational Set Up: Bank’s Administrative Set Up:

Bank’s administrative set up is depicted as under:
(Baroda Corporate Centre, Mumbai) (‘Baroda House’, Mandvi, Baroda)

Corporate Office Head Office
At the apex level, we have Head Office at Baroda and Corporate Office at Mumbai. Whole India is divided into
-13- Zones and -74- Regions.
(b) Bank’s Network:

At present the Bank is having total network of 5486 branches in India (as on 30.11.2016). (Source - Bank’s
Site)
We have one State of Art, Specialized Integrated Treasury Branch (SITB) in Mumbai, which is looking
after investments, liquidity and forex management for the bank in addition to maintenance of SLR & CRR
requirements.
Indian Subsidiaries & Joint Ventures

The Bank has following Indian Subsidiaries:
(1) BOBCARDS Ltd.
(2) BOB Capital Market Ltd.
The Bank holds majority shareholding and management control in The Nainital Bank Limited.
The Bank has one Life Insurance joint venture, ‘India First’ with Andhra Bank and Legal &
General of UK.
The Bank has one Mutual Fund joint venture called ‘Baroda Pioneer Mutual Fund’ with Pioneer
Investments.
The bank has also floated “India Infradebt Ltd”. On 31.10.2012 to finance Infrastructure
projects.
Our Bank has sponsored following Regional Rural Banks (RRBs):
(1) Baroda Uttar Pradesh Gramin Bank, Raebareli
(2) Baroda Rajasthan Gramin Bank, Ajmer
(3) Baroda Gujarat Grameen Bank, Bharuch
International Presence: Sun never Sets in Bank of Baroda

In the year 1953, taking a pioneering step, the Bank opened its first overseas branch at Mombasa,
Kenya on 14.12.1953 followed by two other branches at Kampala and Nairobi.
Subsequently, operations started in Dar-Es-Salaam in 1956 and in London in 1957. This was a great
new beginning in the development of foreign exchange business. Since then, the Bank systematically
opened branches/offices in various territories.
At present, the Bank has an overseas network 104 branches / offices in the following 26 countries:
BRANCHES SUBSIDIARIES JOINT VENTURE
Australia Botswana Zambia

Bahamas Ghana Malaysia
Bahrain Guyana REPRESENTATIVE OFFICES
Belgium Kenya
Thailand
China New Zealand
Fiji Islands Tanzania
Hong Kong Trinidad & Tobago
Mauritius Uganda
Republic of South Africa
Seychelles
Singapore
Sultanate of Oman
United Arab Emirates
United Kingdom
United States Of America
Domestic Overseas
Subsidiary Subsidiary
BOBCARDS Ltd. Bank of Baroda (Botswana) Ltd.
BOB Capital Markets Ltd. Bank of Baroda (Kenya) Ltd.
Nainital Bank Ltd. Bank of Baroda (Uganda) Ltd.
Bank of Baroda (Guyana) Ltd.
Bank of Baroda (New Zealand) Ltd
Bank of Baroda (Tanzania) Ltd
Bank of Baroda (Trinidad & Tobago) Ltd.
Bank of Baroda (Ghana) Ltd.
Joint Venture Company (J.V.) Representative Offices
India First Life Insurance Company Limited Bank of Baroda (Thailand)
India Infradebt Ltd
Associate Associate

Indo-Zambia Bank Ltd. (Lusaka)
Baroda Pioneer Asset Management Company Ltd
ndia International Bank Malaysia Berhad
Baroda Uttar Pradesh Gramin Bank
Baroda Rajasthan Gramin Bank
Baroda Gujarat Gramin Bank
Branch Network (as of 30/11/2016)

Area No. of Branches
Metro 1012
Urban 947
Semi-Urban 1439
Rural 1981
Total (Indian) 5379
Foreign (Overseas) 107
Total (Global) 5486
Controlling Offices
Zonal Offices 13
Regional Offices 74
SOCIAL COMMITMENTS: Our bank has responsibility of development under Service Area Approach through :
State Level Bankers Committee (SLBC) Convenorship
Rajasthan
Uttar Pradesh
Banks Lead Districts - 44
State No. of Lead Districts
Gujarat 12
Uttar Pradesh 14
Uttaranchal 2
Rajasthan 12
Madhya Pradesh 2
Bihar 2

KYC/AML Compliance:
Your Bank has well defined KYC-AML-CFT Policy, which is the foundation on which, the Bank's
"implementation of KYC norms, AML standards, CFT measures and obligation of the Bank under Prevention of
Money Laundering Act (PMLA) 2002" is based:
The major highlights of KYC-AML-CFT implementation across your Bank are as under:
 The Bank electronically generates Cash Transaction Reports (CTRs) for submission to Financial
Intelligence Unit-India (FIU-IND)
 The "AML Solution" for generating system-based alerts on the basis of transactions in the
accounts of the customers is in place. The scope has been further widened with addition of more
alert definitions as per recommendations of IBA working group. Your Bank has a designated
Director for overall compliance of KYC-AML-CFT guidelines.
 Central Transaction Monitoring Unit (CTMU) has started functioning from 18.02.2016 at your Bank's
Head Office for exclusively monitoring of the transactions/ alerts generated in AML Solution and
filing of STRs, if found suspicious.
 There is a scrutiny team for detection and submission of Suspicious Transaction Reports (STRs) to the
Financial Intelligence Unit-India (FIU-IND). System-based Risk Categorization (from AML angle) of
Bank's customers' accounts has been done half yearly i.e. in July and January.
 The Bank files Counterfeit Currency Reports (CCRs) and Non Profit Organizations Transaction
Reports (NTRs) to FIU-IND, New Delhi every month. Your Bank generates Cross Border Wire Transfer
Reports every month through electronic mode for submission to FIU-IND, New Delhi. The Bank is in
the process of allotting Unique Customer Identification Code (UCIC) to all its existing customers as
per the RBI guidelines.
 Online verification of PAN from NSDL has been operationalised as a major step to tackle
money laundering activities.
 CBS system has been modified suitably so as not to accept cash deposits of ? 50,000/- and
above in absence of PAN / Form No. 60/61.
 Your Bank has implemented Aadhaar based e-KYC in collaboration with UIDAI. Real-time checking of
names from UNSCR list is available in all the branches as a step towards CFT.
 Online scanning of the customer's name with the names of the individuals/ entities included in
the updated AL Qaida/ Taliban Sanctions list or any other Blacklist issued by Govt. Authorities,
while opening of accounts and generates the AML Alerts on predefined criteria. Your Bank has
successfully participated in Pilot Run of Central KYC Registry and completed the process of
inclusion of the CKYC mandatory fields in the Account Opening Form and mapped the CKYC codes
with the codes in our CBS system.
For achieving full KYC compliance, following measures are taken by the Bank:
 A comprehensive list of KYC documents is uploaded on your Bank's website

(www.bankofbaroda.co.in) for the benefit of customers.
 Mobile based SMS are being sent and notices have been published in local and national dailies for
updation of KYC data in accounts of the customers

Major initiatives taken by Bank
Project Navnirmaan:
Navnirmaan is a comprehensive change programme that seeks to rebuild the Bank for the future. This
change programme shall touch all aspects of the Bank’s processes, structures and systems with an
objective to simplify processes improve branch productivity and provide best-in-class service to our
customers. This is a change programme which seeks to create the ‘Baroda Next’, the brand promise
that we are making to our customers at large. Our Bank has partnered with well known consultants
M/s Mckinsey & Company to take this project forward.
Why Navnirmaan?
1. Less time spent on relationship management and business development
2. Low utilization of technology
3. To reach at no.1 among PSU Banks
4. High aspirations of stake holders
5. In previous 20 years, banking sector underwent sea changes, so, it was needed immediate
attention to realign process change.
‘Navnirmaan’ has two main components:

 Business Process Re-engineering (BPR) and
 Organisational Restructuring (OR).
Business Process Re-engineering:

Business Process Re-engineering has following objectives:
 Improvement in branch productivity.
 Best-in-class service levels for customer delight.
 Redesign of front and back office processes and roles to reduce turnaround time and to
simplify processes.
 Reduction in operating costs.
Organizational Restructuring:
Organizational Restructuring has following objectives:
 Appropriate organization structure and systems to support BPR and in line with future business
plans.
 Sustainability of change programme through capability building.
To accomplish above objectives, following five different types of Back Offices are proposed:
1. Account Opening and Maintenance Lean Service Factory- Regional Back Office:
At present 13 RBOs are operating thoughout the country as on 31.03.16
This will accomplish following activities:
 Account opening and enrichment – Savings and Current Account.

 Generation of debit card request file & i-track number file for internet banking.
 Personalised cheque book issuance.
 Printing of customer statements and other intimations.
 CRM data entry.
 Changes in customer account details.
 Account closure.
 Account opening, renewal and printing of term deposits.
2. Payment Processing Centre -City Back Office:
More automation is proposed to be carried out at the existing City Back Offices so that productivity of
processing of cheques can be enhanced by 60%. There are ‘85’ CBOs working as on 31.03.16
3. Credit Processing Centres - SME / Retail Loan Factory:
As part of business segmentation and to expedite our delivery mechanism, Bank has established -53-
SME Loan Factories and -65- Retail Loan Factories as on 31.03.2016 which work on assembly line
principal (Source - Bank’s Site).
4. SME Loan Factory
With the aim of extending more focused services to the SME Sector, the bank has carved out a special
sale and delivery model for hassle-free and faster sanction of credit proposal in the SME Sector.
SME Loan Factory is divided into two divisions – Central Hub and Sales Hub. Central Hub to be headed
by Head (Credit) and Sales Hub to be headed by Head (Sales) and sales coordinator both are located in
same premises for better liaison and coordination.
Relationship Managers and Relationship officers are located at strategic designated Branches in various
locations of the city, based on business potential available in the designated branches and other
factors.
Role and Functions

 Role of Marketing Team is to generate leads, exploring new customers and strengthening
relations with existing customers.
 Role of Credit Hub is to examine / purse leads generated by Marketing Team for financing. Based
on proposals received from successful leads, credit proposals are processed.
 The entire sanction procedure is to be completed within a maximum of 14 working days from the
date of receipt of complete information. In case TEV study is required the time taken is 21 days
after receipt of complete information.

5. Composite Loan factories:
Bank has moved towards a further innovative step to establish a “Composite Loan Factory” at
Mangalore, where a prospective as well as our existing borrower can avail SME and/or Retail loan
under one umbrella.
Global Syndication Center & IMBC

1. Bank’s Global Syndication center at London was set up in 2000. With a view to tap the growing
business opportunities in the Middle East and South East Asia Region, Bank has decided to start new
Regional syndication Centres at (1) Dubai (2) Singapore and (3) Johannesburg.
2. The Bank has started a specialized outfit- International Merchant Banking Cell (IMBC) at International
Div. Mumbai to service the ever growing demand from Indian Corporates for funds from International
markets.
3. IMBC is also active in funding Merger & Acquisitions of domestic and overseas companies by Indian
Corporates. The IMBC will arrange for syndicated loans, Bonds, FCCBs etc. And investment banking
and advisory services.
M/s India Infra debt Limited:

In line with the announcement by the Finance Minister in his Budget speech for FY12., Our Bank, has
co-promoted the country’s First Infrastructure Debt Fund – M/s India Infra debt Limited to facilitate the
flow of long term debt fund to Infrastructure sector.
Wealth Management Services

Our Bank as part of customer centric measure initiated Wealth Management Services to provide our
HNI and affluent customer a complete financial solution at one stop.
The service has enabled our customers to buy various investment products through our branches and
is positioning our Bank as “One Stop Financial Super Market”.
Under Wealth Management Services currently we are offering 3rd party products in Bancassurance, Mutual
Fund, e-Trading etc. under tie up arrangement with various partners.
Segment Name of Tie-up Partner Products

Life IndiaFirst Life Insurance Co. Ltd. (Joint  Unit Linked Insurance Plan
Insurance Venture Co. of the Bank)  Term Insurance Plan
 Endowment Plan
 Group Insurance Plan etc.
General National Insurance Co. Ltd.  “Baroda Health” co-branded medi-
Insurance insurance products for
hospitalization expenses
 Insurance covered for assets such
as vehicle, business & industries,
live stock etc. from various risks.
Mutual Fund Baroda Pioneer Mutual Fund (Joint  Growth/Equity Scheme
venture Co. of the Bank)  Income / Debt Scheme
UTI Mutual Fund  Balance Fund
Birla Sunlife Mutual Fund  Money Market or Liquid Fund
Reliance Mutual Fund  Gilt Fund
Sundaram BNP Paribas  Index Fund
Franklin Templeton Investments  Tax Saving Scheme
 Fixed Maturity Plan
Kotak Mahindra Mutual Fund
IDFC Mutual Fund
E-Broking BOBCAPS LTD Trading in equity, commodities and
its derivatives
Other Major tie up / MOU of Bank with other Service providers

 EXIM Bank, IDFC and SIDBI for co-financing of projects.
 IFCL for infrastructure development finance
 Bank of Baroda enters into an agreement with Bombay Stock Exchange for clearing and settlement
 M/s Avenue (India) Pvt. Ltd will enable customers of the Bank to shop opline, and make payments
through Net Banking account.
 M/s Techprocess Ltd. For providing online payment solution and direct debit credit to its customers.
This tie-up will enable Banks customers to shop on-line through Banks e-banking portal and also
make utility bill payments like telephone bills, electricity bills etc.
 Car Finance with Tata Motors Ltd., Hyundai Motors India Ltd., Mahindra & Mahindra Ltd., Maruti
Suzuki India Ltd.
 Four wheeler commercial vehicle with Ashoka Leyland ltd.
 Tie up with Kotak Mahindra Old Mutual Life Insurance Ltd. For providing Life Insurance Cover to
Education Loan borrowers and Home Loan borrowers sanctioned under a special package.
 MOU with CGTMSE for extending collateral free loans up to Rs. 100 lacs under Risk Sharing Facility
scheme launched by CGTMSE.
e-Payment of Taxes “Enabling Non-Customers and Non-Baroda Connect Customers”:

CBS Branches to open a Current Account, under special scheme code “CA 118”- General Tax
Remittance Account (Name of the Branch) & obtain Baroda Connect ID & Password.
Advantages to Customer:-
 Having no Net banking facility can make e-payment of Taxes
 No formalities-Registration , login ID,PW etc
 Online check of PAN / TAN / Assessee code
 Confirm immediate Tax payment – Challan
 Instant cyber receipt/counter foil with CIN, Payt. details , Name of the branch
 Counter foil can be regenerated
 Tax payment for any commissionerate available
 On line Tax payment by branch on behalf of any individual , corporate etc
 No limit on amount

 For customer free
Advantages to Bank / Branch:-

 Attract Non customer-Expand Business
 Corporate having many units/brs. –different assessee code/PAN/TAN can pay from single point-need
not required separate Bank accounts Internet banking for each account
 Good Non Fund based income source from a single corporate
 Chances for cross sell of products to HNI/Corporate
Digital Footprint
 146.49% Mobile Banking Transactions (YOY growth)

 70.48% Internet Banking Transactions (YOY growth)
 76.47% POS/ E-Comm Transactions (YOY growth)
 38.82% ATM Banking Transactions (YOY growth)
Account Opening Kiosk
 Opening of account through PAN card/Aadharauthentication

 Non-personalized Debit card issuance
 Account balance enquiry, statement of account
 Value added services, e.g., mobile top-ups, utility bill payments
 Other facilities such as pre-approved loans to be added
Startup Financing:
Key partner in Hon’blePM’s Standup India and Startup India initiatives
MUDRA Loan partnerships:

1. UBER
 Bank has tied-up with UBER, to finance vehicle purchase for UBER platform
 Offers best product on the street -interest rate from 10.65% with 90% on-road financing
 Exceptional response to Mumbai pilot launch -250 offline, 200 online leads received within a single
day
2. Lithium
 Partnered with Lithium Urban Tech –offering MUDRA loans to Mahindra electric car drivers who
provide pick-up and drop services at office campuses; All payments through the Bank’s payment
network

E-Commerce initiatives
 The Bank offering collateral free working capital loan to over 3 lakh sellers on Snapdeal through
Snapdeal’sonline Capital Assist Platform
 Seamless and easy credit facilities to sellers with loans from INR 1 lac to INR 25 lacs
 Currently in discussions with multiple major e/m Commerce players for horizontal collaboration
Fintech initiatives:
 Bank of Baroda has established THE FINTECH ALLIANCE –a first of its kind initiative for a PSB –to
partner with Fintech companies operating in areas like SME & supply chain financing, algorithmic
lending, etc .
 CreditMantri: Partnered with CreditMantrito develop alternate data-based proprietary algorithmic
credit assessment service to carry out an in-depth credit analysis for ascertaining a borrower’s
creditworthiness, Started Oct’16
 Fisdom : Partnered with Fisdomto provide personal wealth management mobile app for its
customers, Starting Nov’16.
 IndiaLends : Tying up with IndiaLendsto expand in the consumer lending market by offering
personal loans to leads generated through the latter's lending marketplace platform.
Social Security Schemes (Enrolment up to 30 September, 2016 in Lakh):
Pradhan Mantri Suraksha Bima Yojana 39.94

Pradhan MantriJeevan Jyoti Yojana 13.12
Atal Pension Yojana 1.98
In Q2 FY 17, Bank has conducted 695 Financial Literacy Programs across 49 Financial Literacy Centers (FLCs)
spread across the country. 23,185 youths have been trained and 7925 youth settled through these programs
in FY 16.
SELECT AWARDS & ACCOLADES
 Bank of Baroda awarded runner-up-award -‘Public Sector Bank’ category for the year 2013-14 at ‘FE
India’s Best Bank’ by The Financial Express (FE) a function held in Mumbai on 01.09.2016
 Bank of Baroda Ranked 21stamongst Best Indian Brands 2016 in Brand Equity –The Economic Times
dated 31stAugust to 6thSeptember, 2016
16.07.2015 Bank was awarded HR Excellence Award by Businessworld for "Best initiative for
Engaging Superannuated Employees".
28.08.2015 Bank was conferred the Best Public Sector Bank under the category "Global Business" at
the Dun & Bradstreet Banking Awards 2015

14-09-2015 Bank of Baroda won First Prize under All India Rajbhasha Kriti Purashkar Scheme of Govt.
of India for Bank's outstanding performance in Official Language Implementation
under the category of nationalized banks in linguistic region "B", for the year 2014-15.
09-02-2015 Bank of Baroda, South Gujarat Zone has been awarded the First Prize in Western Region in
Bank's category, by Government of India, Department of Official Language, Ministry of
Home Affairs for commendable performance in implementing the Official Language Policy
during the year 2014-15 on 9th Feb, 2016 in Official Language Conference for Central and
Western Regions held in NIO, Goa
16-02-2016 Bank of Baroda was awarded as First Runner up for "Best Financial Inclusion Initiative" in
the category of Large Banks by IBA during Banking Technology Awards 2016 at Mumbai.
20-02-2016 Bank of Baroda was awarded for "Excellence in Education Loan" at 6 th My FM Stars of the
Industry awards for Excellence in Finance, Banking, Insurance and Financial Services held
in Mumbai
18.032016 Bank of Baroda won -3- Awards at the 55th Association of Business Communicators of
India (ABCI) Awards 2016. Wall Calendar 2015 – Silver Headlines - Bronze -For NRI Ad -
"Exclusive Banking Solutions for the Global Indians" E-Zine - Silver -BOBMarcom
Brand Endorsement announced with ace Indian Badminton Players -Ms. P V Sindhu & Mr. K
Srikanth
Other Impoerant Financial News :
What are the Major Changes Proposed in Basel III over earlier Accords i.e. Basel I and Basel II?
What are the Major Features of Basel III ?
1) Better Capital Quality: One of the key elements of Basel 3 is the introduction of much stricter
definition of capital. Better quality capital means the higher loss-absorbing capacity. This in turn will
mean that banks will be stronger, allowing them to better withstand periods of stress.
2) Capital Conservation Buffer: Another key feature of Basel iii is that now banks will be required to
hold a capital conservation buffer of 2.5%. The aim of asking to build conservation buffer is to ensure
that banks maintain a cushion of capital that can be used to absorb losses during periods of financial
and economic stress.
3) Countercyclical Buffer: This is also one of the key elements of Basel III. The countercyclical
buffer has been introduced with the objective to increase capital requirements in good times and
decrease the same in bad times. The buffer will slow banking activity when it overheats and will
encourage lending when times are tough i.e. in bad times. The buffer will range from 0% to 2.5%,
consisting of common equity or other fully loss-absorbing capital.
4) Minimum Common Equity and Tier 1 Capital Requirements: The minimum requirement for
common equity, the highest form of loss-absorbing capital, has been raised under Basel III from 2% to
4.5% of total risk-weighted assets. The overall Tier 1 capital requirement, consisting of not only
common equity but also other qualifying financial instruments, will also increase from the current

minimum of 4% to 6%. Although the minimum total capital requirement will remain at the current
8% level, yet the required total capital will increase to 10.5% when combined with the conservation
buffer.
5) Leverage Ratio: A review of the financial crisis of 2008 has indicted that the value of many assets
fell quicker than assumed from historical experience. Thus, now Basel III rules include a leverage
ratio to serve as a safety net. A leverage ratio is the relative amount of capital to total assets (not risk-
weighted). This aims to put a cap on swelling of leverage in the banking sector on a global basis.
3% leverage ratio of Tier 1 will be tested before a mandatory leverage ratio is introduced in January
2018.
6) Liquidity Ratios: Under Basel III, a framework for liquidity risk management will be created. A new
Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) are to be introduced in 2015 and
2018, respectively.
7) Systemically Important Financial Institutions (SIFI) : As part of the macro-prudential

framework, systemically important banks will be expected to have loss-absorbing capability beyond the
Basel III requirements. Options for implementation include capital surcharges, contingent capital and
bail-in-debt.
Comparison of Capital Requirements under Basel II and Basel III :
Requirements Under Basel II Under Basel III

Minimum Ratio of Total Capital To RWAs 8% 10.50%
Minimum Ratio of Common Equity to RWAs 2% 4.50% to 7.00%
Tier I capital to RWAs 4% 6.00%
Core Tier I capital to RWAs 2% 5.00%
Capital Conservation Buffers to RWAs None 2.50%
Leverage Ratio None 3.00%
Countercyclical Buffer None 0% to 2.50%
Dealing with Dishonoured Cheque:

As part of Customer Service guidelines, RBI has framed following Rules to be followed by banks, in
case of dishonour of cheques:
Returning of dishonoured cheques-

These instruments should be dispatched to the customer promptly without delay, in any case within 24
hours.
Procedure for return/ despatch of dishonoured cheques

 The paying bank should return such cheques presented through clearing houses strictly as per the
return discipline prescribed for respective clearing house in terms of Uniform Regulations and Rules for
Bankers’ Clearing Houses.
 In relation to cheques presented direct to the paying bank for settlement of transaction by way of
transfer between two accounts with that bank, it should return such dishonoured cheques to payees/
holders immediately.

 Cheques dishonoured for want of funds in respect of all accounts should be returned along with a
memo indicating therein the reason for dishonour as “insufficient funds.”
Dealing with incidence of frequent dishonour

 Banks should introduce a condition for operation of accounts with cheque facility that in the event of
dishonour of a cheque valuing Rs.1 cr and above drawn on a particular account of the drawer on 4
occasions during the financial year for want of sufficient funds in the account, no fresh cheque book
would be issued. Also, the bank may consider closing current a/c at its discretion. However, in respect
of advances accounts such as cash credit or overdraft account, the need for continuance of these credit
facilities and the cheque facility relating to these a/c should be reviewed by appropriate authority
higher than the sanctioning authority.
 For introduction of the condition mentioned at (i) above in relation to operation of the existing
accounts, banks may, at the time of issuing new cheque book, issue a letter advising the constituents
of the new condition.
 If a cheque is dishonoured for a 3rd time on a particular account of the drawer during the financial
year, banks should issue a cautionary advice to the customer drawing his attention to the condition and
consequential stoppage of cheque facility in the event of cheque being dishonoured on 4th occasion on
the same account during the financial year. Similar cautionary advice may be issued if a bank intends
to close the account.
RBI tightens salary account opening rule:
The RBI has directed banks to ask for one more proof such as Passport, Driving licence, PAC card,
Voter’s identity card or utility bills, in addition to the certificate issued by the employers while opening
salaried bank accounts. RBI feels that insistence on two documents will reduce the chances of misuse
of account.
Base rate for Bank loans: The present Base rate is 9.60% (w.e.f. 01.07.2016)
RBI has advised Banks to switch over from Bench mark Prime lending rate to Base rate system wef July
1, 2010.
Criteria for determination of Base Rate:

While each bank may decide its own base rate, some of the criterio that could go in to determination of
Base rate are
a. Cost of Deposits
b. Adjustment for negative carry in respect of CRR & SLR.
c. Unallocatable overhead cost for banks such as agreegate employee compensation relating to
administrative functions in corporate office, director’s and auditor’s fee, legal and premises
expenses, depreciation, cost of printing and stationery, expenses incurred on communication
and advertising, IT spending and cost incurred towards deposit insurance and
d. Profit margin
Since the Base rate will be the minimum rate for all commercial loans, banks are not permitted to resort to any
lending below the Base rate except some special categories like –
a. Short Term agricultural loans.

b. Export credit, where interest concessions are granted by GOI
c. Loans granted to a corporate, post restructuring.
d. Loans under DRI scheme.
e. Advance against Bank’s own term deposit receipts.
f. Loan granted to Bank’s own employees.
Key Rates as on 30.11.16:

Our Bank Reserve Bank of India
Base Rate (01.07.16) 9.60% Cash Reserve Ratio to be maintained under section
4.00%
42 of Reserve bank of India Act 1934
Bench Mark Prime Lending 13.90% Statutory Liquidity Ratio to be maintained under
20.75%
Rate (05-10-15) section 24 of Banking Regulation Act 1949.
Saving Bank Rate 4.00% Repo Rate 6.25 %
Reverse Repo Rate 5.75 %
Bank Rate 6.75 %
Marginal Standing Facility Rate 6.75 %
Who’s who in Indian Banking Industry?:
1. Ministry of Finance
Union Finance Minister Arun Jaitly
Secretary (Financial Services) Ms Anjuly Chib Duggal
2. Reserve Bank of India RBI Directors
Governor Dr. Urjit R. Patel Dr. Nachiket M Mor
Deputy Governor Shri R. Gandhi Bharat Narotam Doshi
Shri S. S. Mundra Shri Sudhir Mankad
Shri N. S. Vishwanathan Shri Shaktikanta Das
Natarajan Chandrasekaran
3. SEBI Chairman Upendra Kumar Sinha Ms Anjuly Chib Duggal
4 IBA Chairman Rajeev Rishi
5 NABARD Chairman Harsh Kumar Bhanwala
6 SIDBI Chairman Kshatrapati Shivaji,
7 IRDA Chairman T S Vijayan
Who’s who:
Designation - Name
Chief Election Commissioner - Dr. Nasim Zaidi
Chief of the Naval Staff - Admiral Robin K. Dhowan
President, International Cricket Council(ICC) - AHM Mustafa Kamal
Chief of the Air Staff - Air Chief Marshal Arup Raha
Chief of the Integrated Defence Staff - Air Marshal PP Reddy
Executive Director, -UNICEF - Anthony Lake
Secretary-General, SAARC - Arjun Bahadur Thapa
Vice Chairman, NITI Aayog - Arvind Panagariya
Chairman Wipro - Azim H. Premji
Secretary-General, United Nations Organisations - Ban Ki-moon
President, World Bank - Dr. Jim Yong Kim
Deputy Speaker, Lok Sabha - Dr. M. Thambidurai
Chief of the Army Staff - General Dalbir Singh Suhag
CEO Wal-Mart India - Krish Iyer
CEO Facebook - Mark Zuckerberg
Chairman Tata Sons - Mr. Cyrus Mistry
Chairman Mittal Arcelor Steels - Mr. Lakshmi Mittal
Chairman Relience Industries - Mr. Mukesh Ambani
CEO, Tata Consultancy Services (TCS) - Mr. N Chandrasekaran
Chairman Jet Airways - Mr. Naresh Goyal
Chairman HCL Technologies - Mr. Shiv Nadar
Chairman Bharati Group - Mr. Sunil Mittal
Chairman & Group CEO, Bharti Enterprises - Mr. Sunil Mittal
Managing Director & CEO ICICI Bank - Ms. Chanda Kochhar
CEO Pepsico - Ms. Indira Nooye
Chairman Biocon - Ms. Kiran Majumdar
CEO and Managing Director Infosys - Mr.Vishal Sikka
Heads of Important Offices in India
Mr. Narendra Modi : Chairman, National Institution for Transforming India (Niti Aayog)
Mrs. Sumitra Mahajan : Speaker, Lok Sabha.
Mohammad Hamid Ansari : Chairman, Rajya Sabha.
Mr. P. J. Kurien : Deputy Chairman, Rajya Sabha.
Mr. Arun Jaitley : Leader of House (Rajya Sabha).
Mr. Ghulam Nabi Azad : Leader of Opposition (Rajya Sabha).
Mr. Arvind Panagariya : Vice-Chairman, National Institution for Transforming India (Niti Aayog)
Syed Nasim Zaidi : Chief Election Commissioner.
Mr. Achal K. Jyoti : Election Commissioner.
K. V. Chowdary : Chief Vigilance Commissioner (CVC)
R. K. Mathur : Chief Information Commissioner (CIC)
Mr. Shashi Kant Sharma : Comptroller and Auditor-General of India.
Mr. Justice K. G. Balakrishnan : Chairperson, National Human Right Commission (NHRC)
Mr. Pradeep Kumar Sinha : Cabinet Secretary.
Mr. Nripendra Misra : Principal Secretary to Prime Minister.
Justice V. Eshwaraiah : Chairman, National Commission for Backward Classes.
Ms. Shanta Sinha : Chairperson, National Commission for Protection of Child Rights(NCPCR)
Dr. P. L. Punia : Chairman, National Commission for Scheduled Castes
Dr.Rameshwar Oraon : Chairman, National Commission for Scheduled Tribes (NCST).
Mr. Deepak Gupta : Chairman, Union Public Service Commission (UPSC).
Dr. M. S. Swaminathan : Chairman, National Commission on Farmers (NCF).
Mr. Ajit Kumar Doval : National Security Adviser and Special Adviser to PM (Internal Security).
Mr. Sharad Kumar : Director-General, National Investigation Agency (NIA)
Mr. A. K. Mital : Chairman, Railway Board.
Mr. Shumsher K. Sheriff : Secretary-General, Rajya Sabha
Mr. T. K. Viswanathan : Secretary-General, Lok Sabha.
Mr. Dineshwar Sharma : Director, Intelligence Bureau (IB).
Mr. Anil Kumar Sinha : Director, Central Bureau of Investigation (CBI).
Mr. Rajinder Khanna : Director, Research and Analysis Wing (RAW).
Mr. Jayanto Narayan Choudhury : Director-General, National Security Guard (NSG).

Mr. Prakash Mishra : Director-General, CRPF.
Mr. Devendra Kumar Pathak : Director-General, Border Security Force (BSF).
Mr. Arvind Ranjan : Director-General, Central Industrial Security Force (CISF).
Mr. P. K. Mehta : Director-General, Railway Protection Force. (RPF)
Mr. Krishna Chaudhary : Director-General, Indo-Tibetan Border Police (ITBP).
Mr. B. D. Sharma : Director-General, Sashastra Seema Bal.
Vice-Admiral Anurag G. Thapliyal: Director-General, Indian Coast Guard.
Lt. Gen. Avtar Singh : Director-General, Defence Intelligence Agency.
Prof. Ved Prakash : Chairman, UGC.
Dr. Avinash Chander : Scientific Adviser to Defence Minister and Secretary, Defence Research
and Development Organisation. (DRDO)
Dr. R. Chidambaram : Principal Scientific Adviser to the Government.
Mr. A. S. Kiran Kumar : Chairman, Space Commission and ISRO.
Mr. Ratan Kumar Sinha : Chairman, Atomic Energy Commission and Secretary, Dept. of Atomic
Energy.
Mr. Naseem Ahmad : Chairperson, National Commission for Minorities.
Mr. Amitava Bhattacharya : Chairman, Staff Selection Commission (SSC).
Dr. Vishwa Mohan Katoch : Director-General, Indian Council of Medical Research.
Mr. C. Chandramouli : Registrar-General of India and Census Commissioner.
Justice Ajit Prakash Shah : Chairman, Law Commission of India.
Dr. B. N. Suresh : President, Indian National Academy of Engineering (INAE).
Mr. Justice (Retd.) B. N. Kirpal : Chairman, National Forest Commission.
Mr. T. Nanda Kumar : Chairperson, National Dairy Development Board (NDDB).
Lt. General AT Parnaik : Director-General, Border Roads Organisation.
Urijit R Patel : Governor, RBI.
Justice Mr. Chandramauli Kumar Prasad : Chairman, Press Council of India.
Mr. Ravindra Pisharody : Chairman, Audit Bureau of Circulations (ABC).
Mr. R. K. Tewari : Chairman, Central Board of Direct Taxes (CBDT).
Mrs. J.M. Shanti Sundharam : Chairman, Central Board of Excise and Customs.
Mr. Ashok Chawla : Competition Commission of India
Justice Syed Rafat Alam : Chairman, Central Administrative Tribunal
Mr. R.S.T. Sai : CMD, National Hydroelectric Power Corporation (NHPC).
Mr. Dinesh K. Sarraf : CMD, Oil and Natural Gas Corporation (ONGC).
Mr. B. C. Tripathi : CMD, GAIL.
Mr. S. Behuria : Chairman, IOC.
Mr. Sunil Kumar Srivastava : CMD, Oil India Ltd.
Dr. Satbir Bedi : Chairperson, Central Board of Secondary Education (CBSE).
Mr. U. K. Sinha : Chairman, Securities and Exchange Board of India (SEBI).
Dr. Harsh Kumar Bhanwala : Chairman, National Bank for Agriculture and Rural Development
(NABARD).
Smt. Arundhati Bhattacharya : Chairman, SBI.
Mr. M. S. Raghavan : Chairman, IDBI.
Justice Dilip Raosaheb Deshmukh: Chairman, Company Law Board.
Mr. Asoke Kumar Mukerji : India's Permanent Representative to UN.
Mr. S. K. Roy : Chairman, Life Insurance Corporation of India (LIC)
Mr. Ashwin Pandya : Chairman, Central Water Commission.

Important names in Union Council of Ministers
Shri Narendra Modi :Personnel, Public Grievances and Pensions Department of Atomic Energy
Department of Space All important policy issues and all other portfolios not
allocated to any Minister
Cabinet Ministers
1 Shri Raj Nath Singh Home Affairs

2 Smt. Sushma Swaraj External Affairs
3 Shri Arun Jaitley FinanceCorporate Affairs
4 Shri M. Venkaiah Naidu Urban DevelopmentHousing and Urban Poverty
Alleviation Information & Broadcasting
5 Shri Nitin Jairam Gadkari Road Transport and HighwaysShipping
6 Shri Manohar Parrikar Defence
7 Shri Suresh Prabhu Railways
8 Shri D. V. Sadananda Gowda Statistics & Programme Implementation
9 Sushri Uma Bharati Water Resources, River Development and Ganga Rejuvenation
10 Shri Ramvilas Paswan Consumer Affairs, Food and Public Distribution
11 Shri Kalraj Mishra Micro, Small and Medium Enterprises
12 Smt. Maneka Sanjay Gandhi Women and Child Development
13 Shri Ananthkumar Chemicals and Fertilizers Parliamentary Affairs
14 Shri Ravi Shankar Prasad Law & Justice Electronics & Information Technology
Union Budget 2015-16: Highlights & Key Announcements
 The objective of this Budget is to improve quality of life and to pass benefits to common man.
 Indian Govt has 3 major achievements: Jan Dhan Yojana, Coal Auction and Swacch Bharat programme
 Incremental change is not going to take us anywhere, will need to think in terms of quantum jump
 Under Swacch Bharat Yojana, 50 lakh toilet already built, 6 crore toilet targeted
 Government will encourage new start ups and entrepreneurship
 Government is still firm on achieving fiscal deficit target of 3 % of GDP eventually
 Real GDP expected to accelerate to 7.4%
 Current FOREX reserves $340 bn, Second best stock market in Asian economy
 Govt will utilize vast postal network for increasing access to institutional banking
 Roadmap to achieve Fiscal deficit of 3% of GDP in three years: Target is 3.9% in 2015-16, 3.5% in
2016-17, 3% in 2017-18.
 National Insurance scheme called PM Suraksha Bhima Yojana, offering coverage of 2 lakh rupees for
just premium of Rs.12 per year. [WOW!]
 Rs. 5300 crore allocated for micro irrigation
 Target of 8.5 lakh crores credit to be given to farmers in 2015-16
 Target of 8.5 lakh crore of credit for agricultural sector
 Unclaimed deposits of Rs 3,000 crore in PPF and Rs 6000 crore in EPF; to create senior citizens welfare
fund from this corpus
 Atal Pension Yojana to provide defined pension according to contribution ; 50% contribution to be from
Govt.
 Increased Budgetary allocation to Roads & Railways
 5 Ultra Mega power projects, of 4000 MW announced
 Initial sum of Rs 150 Cr to create world class IT hub to take advantage of our competitiveness
 Start-ups: mechanism for techno-financial incubation for start ups; govt sets aside Rs 1000 crore
 National Infrastructure Fund will try to leverage Infrastructure companies ; Tax free bonds for Roads ,
Railways & irrigation
 Renewable energy target will be increased to 1,75,000 MW
 Highest ever allocation for MGNREGA, by increasing it this year by 5,000 crore rupees
 Ports in public sector will be encouraged to corporatize & become companies under companies act
 EPF & ESI has hostage rather than client ; ESI should be made optional to employees
 GST will be put in place state of art internationally indirect tax system by April 1st 2016: FM
 An addition of 1,000 crores for Nirbhaya Fund
 Govt proposes to increase visa-on-arrival to 150 countries to increase tourism
KEY HIGHLIGHTS OF FOREIGN TRADE POLICY 2015-20

 Aiming to nearly double India’s exports of goods and services to USD 900 billion by 2020, the
commerce ministry on 1st April 2015 announced its new Foreign Trade Policy (2015-2020):
 Visakhapatnam and Bhimavaram in Andhra Pradesh recognised as Towns of Export Excellence.
 FTP would reduce export obligations by 25% and give boost to domestic
 manufacturing.
 MEIS (Merchandise Exports from India Scheme) and Services Exports from India
 Scheme (SEIS) incentives to be provided to units based in SEZs.
 Agricultural and village industry products to be supported across the globe at rates of 3% and 5%
under MEIS. Higher level of support to be provided to processed and packaged agricultural and
food items under MEIS.
 Industrial products to be supported in major markets at rates ranging from 2% to 3%.
 Served From India Scheme (SFIS) will be replaced with Service Export from India
 Scheme (SEIS).
 Calicut Airport, Kerala and Arakonam ICDS, Tamil Nadu notified as registered ports for import and
export.
 Nomenclature of Export House, Star Export House, Trading House, Premier Trading
 House certificate changed to 1,2,3,4,5 Star Export House.
 The criteria for export performance for recognition of status holder have been changed from
Rupees to US dollar earnings.
 Manufacturers who are also status holders will be enabled to self-certify their
 manufactured goods as originating from India.
 Inter-ministerial consultations to be held online for issue of various licences.
 No need to repeatedly submit physical copies of documents available on Exporter
 Importer Profile.
India economic growth to surpass China’s in 2015-16:

 UN report Recently released UN World Economic Situation and Prospects (WESP) Report for Mid
update -2015 has projected that India’s economic growth will surpass China’s growth in 2016.

 The report has projected India’s economy to grow by 7.6 per cent in year 2015 and 7.7 per cent in
2016. While, it has projected China’s economic growth will be 7 per cent in year 2015 and 6.8 per
cent in 2016.
 The report has forecasted South Asian region’s GDP will grow by 6.7 per cent in 2015 and 6.9 per
cent in 2016. It also projected that the global GDP will accelerate slightly from 2.6 per cent in 2014
to 2.8 per cent in 2015.
CURRENT AFFAIRS:
The Prime Minister Narendra Modi launched the Micro Units Development and Refinance Agency Ltd
(MUDRA) Bank on 8 April, 2015 with a corpus of Rs 20,000 crore and a credit guarantee corpus of Rs 3,000
crore.
MUDRA Bank has rightly classified the borrowers into three segments: the starters, the mid-stage finance
seekers and the next level growth seekers.
To address the three segments, MUDRA Bank has launched three loan instruments:
1. Shishu: covers loans upto Rs 50,000/-

2. Kishor: covers loans above Rs 50,000/- and upto Rs 5 lakh
3. Tarun: covers loans above Rs 5 lakh and upto Rs 10 lakh
Initially, sector-specific schemes will be confined to “Land Transport, Community, Social & Personal Services,
Food Product and Textile Product sectors”. Over a period of time, new schemes will be launched to encompass
more sectors.
The BRICS - Brazil, Russia, India, China and South Africa –
 They agreed to set up the $100 billion development bank last July, in a step toward reshaping the
Western-dominated international financial system.
 India has named private banker K.V. Kamath as the first head of a new development bank being set up
by the BRICS group of emerging market economies.
 It was agreed that the New Development Bank, which will fund infrastructure projects in developing
nations, would be based in Shanghai. It would be headed by an Indian for a first five-year term,
followed by a Brazilian and then a Russian.
 Kamath, 67, is a veteran banker who was credited with developing ICICI Bank into India's second-
largest lender. He headed the bank for 13 years until 2009 and is now its non-executive chairman.
 He is also non-executive chairman of India's second-biggest software services exporter Infosys.
India’s credit rating outlook was

raised to positive by Moody’s Investors Service and Fitch Ratings boosted its growth forecast, signaling
optimism that policy makers can improve Asia’s No. 3 economy. “The Baa3 rating incorporates the risk
that higher levels of growth and infrastructure development will be accompanied by higher leverage,”
The country’s Baa3 rating was affirmed and the outlook was revised from stable.

Fitch affirmed India’s BBB- rating with a stable outlook. Both companies rate India at the lowest
investment grade, on par with Indonesia and Turkey.
Currency De-monitisation
 The demonetisation of Rs.500 and Rs.1,000 banknotes was a policy enacted by the Government of
India on 8 November 2016. All Rs.500 (US$7.40) and Rs.1,000 (US$15) banknotes of the Mahatma
Gandhi Series ceased to be legal tender in India from 9 November 2016.
 The announcement was made by the Prime Minister of India Narendra Modi in an unscheduled live
televised address at 20:15 Indian Standard Time (IST) on 8 November.
 In the announcement, Modi declared that use of all Rs.500 and Rs.1,000 banknotes of the Mahatma
Gandhi Series would be invalid from midnight of the same day and announced the issuance of new
Rs.500 and Rs.2,000 banknotes of the Mahatma Gandhi New Series in exchange for the old banknotes.
However, the banknote denominations of Rs.100, Rs.50, Rs.20, Rs.10 and Rs.5 of the Mahatma Gandhi
Series remained legal tender and were unaffected by the policy.
 The government claimed that the demonetisation was an effort to stop counterfeiting of the current
banknotes allegedly used for funding terrorism, as well as a crack down on black money in the
country. The move was described as an effort to reduce corruption, the use of drugs, and smuggling.
 However, in the days following the demonetisation, banks and ATMs across the country faced severe
cash shortages. The cash shortages had detrimental effects on a number of small
businesses, agriculture, and transportation, while people seeking to exchange their notes had lengthy
waits, and several deaths were linked to the rush to exchange cash. Also, following Modi's
announcement, the BSE SENSEX and NIFTY 50 stock indices crashed for the next two days.[12]
 The demonetisation received support from several bankers as well as from some international
commentators, although it was criticised by members of the opposition parties, which led to debates in
both houses of parliament and triggered organised protests against the current government in front of
the parliament and elsewhere across India.
Tamil Nadu chief minister Jayalalithaa passed away:
 Chief minister of Tamil Nadu, leader to many Tamils and 'Amma' to millions, J Jayalalithaa died
on Monday after undergoing treatment at Apollo Hospitals in Chennai for 75 days. She was 68.
 Jayalalithaa, who was admitted to hospital on September 22 with complaints of fever and
dehydration, suffered a cardiac arrest on Sunday evening. On Monday, Jayalalithaa continued to
be very critical and was on extracorporeal membrane oxygenation (ECMO) and life support
systems. And the end came at 11.30pm.
J.S. Khehar to be next Chief Justice of India:

Justice Khehar, who will be sworn in on January 4, will hold the tenure for over seven months till
August 27, 2017.
Justice Jagdish Singh Khehar, who led the five-judge constitution bench in the Supreme Court which
had struck down the controversial NJAC Act for appointment of judges, was on Tuesday
recommended as the 44th Chief Justice of India.
Chief Justice of India T S Thakur today wrote a letter recommending the name of Justice Khehar,
who is the senior most judge of the Supreme Court to be his successor.
Justice Khehar, 64, will be the first Chief Justice from the Sikh community and he will succeed CJI
Thakur who will be demitting office on January 3, 2017.
Justice Khehar, who will be sworn in on January 4, will hold the tenure for over seven months till
August 27, 2017.
Besides heading the bench in NJAC matter, Justice Khehar has also headed a bench which had set
aside the imposition of President’s Rule in Arunachal Pradesh in January this year.
He was also a part of the bench which sent Sahara chief Subrata Roy to jail while hearing the matter
relating to the refund of money invested by people in his two companies.
Justice Khehar also headed a bench which recently gave a significant verdict holding that the principal of
‘equal pay for equal work’ has to be made applicable to those engaged as daily wagers, casual and
contractual employees who perform the same duties as the regulars.

RURAL
BANKING

Rural & Agri Banking
Our bank has already implemented the comprehensive business segmentation, of which “Rural & Agri.
Business” is one of them. This segment constitutes the following areas:
• Direct & Indirect agriculture, irrespective of area categorisation
• Micro finance (SHGs etc.), irrespective of area categorisation
• RRBs sponsored by our bank, irrespective of area categorisation
• All other banking business (Asset & Liability) i.e. SME & Retail segment business at semi-urban &
rural branches.
Agriculture Finance Schemes

Agriculture is the backbone of the Indian economy. It constitutes the core of development strategy.
Indian farmers are hard working, innovative and contrary to general impression, not averse to modern
and progressive ideas. Technology has made it possible to improve yields from agricultural operations,
but it also requires some larger outlay in monetary terms. This is where bank’s assistance by way of
loans comes to play a meaningful role to enable the farmers to derive the benefits by adopting
improved methods of cultivation and other aspects of farming operations.
Bank of Baroda, in its own unique way from time to time has evolved a number of lending schemes for
the benefit of all categories of farmers i.e. marginal, small, medium, large as well as tenant farmers,
share croppers and landless labourers keeping in view their need and expectations. Although, after
launching of BKCC, BKLG, SHG Finance, BGCC and various subsidy based schemes like Rural Godown,
Horticulture projects, PMEGP schemes, finances under A.F.S. 1 to 10 has gone down considerably even
then since, all the schemes are running in the bank, it is worth to mention those to have a quick look.
A.F.S. NO. 1 - PURCHASE OF AGRICULTURAL IMPLEMENTS

Purpose
 Purchase of agricultural implements such as indigenous wooden implements, improved iron
implements, agricultural equipments such as sprayers, dusters etc., hand tools such as khurpi, sickles,
secateurs, etc. for farm use, threshers, winnowers, seed-cum-fertilizer drills, etc.
 Purchase of bullocks or camel and/or animal drawn cart.
A.F.S. NO.2 - PURCHASE OF TRACTORS &OTHER HEAVY AGRICULTURAL MACHINES
PURPOSE:
Purchase of new or second hand tractors (whenever new tractors are in short supply), tractor drawn
implements, power tiller and other agricultural machines.
ELIGIBILITY:
Persons engaged in cultivation of crops as owners of land or as permanent tenants or as lease-holders (for
reasonably longer period) and who can utilise the tractor/machinery economically to the minimum
extent of 50% (40% in case of Eastern States) on their own holdings. Further, each beneficiary/group of
beneficiaries of a tractor loan should possess minimum of 04 Acres of perennially irrigated land and above
or corresponding acreage as prescribed for different categories of land under the State Land Ceiling Act,
subject to following conditions: -
 Finance for tractors to farmers with land holding below –6- acres of irrigated land will be considered for
tractors with horse power upto 35 hp.
 Second loan for tractor should be granted only after 3 years from the date of granting first loan provided
the first loan is fully repaid.
Loan amount: Cost of vehicle including Agril implements minus margin.

Margin: 10% of cost
Repayment period:
For tractors maximum 9 years and power-tillers -7- years to be decided depending upon the repaying
capacity on half yearly and annual basis based on surplus generation from crop
Land holding in acres (Irrigated land or Maximum repayment period of 9 years with
corresponding acreages of un-irrigated minimum repayment period as follows
lands) subject to generation of sufficient income
Upto –6- acres irrigated lands -8- years (8 to 9 Years)
Above –6- acres but less than 10 acres -7- years (7 to 9 years)
irrigated lands
Above 10 acres of irrigated lands -6- years (6 to 9 years)
1) Regions were advised to introduce a system for having prior activity clearance for financing for
purchase of tractors for the branches having high NPA in tractor loan portfolio.
2) Disbursement of tractor loan to be made in two phases: (i) 95% of disbursable amount initially (ii)
Rest 5% after having received proof of RTO registration
Scheme for Financing Second Hand / Used Tractors

Loan amount: Maximum Rs. 2 lacs
Repayment period:
Percentage of standard performance* Nos. of years of repayment
More than 85% 5 years
More than 70% but below 85% 4 years
More than 40% but below 70% 3 years
* as mentioned in fitness certificate / valuation report.
A.F.S. NO.3 - LOANS FOR CULTIVATION OF CROPS (EXCLUDING PLANTATION AND

HORTICULTURAL CROPS)
Purpose
a) Purchase of agricultural inputs such as seeds, fertilisers, pesticides, etc. and for payment of labour
charges, irrigation cess, etc.
b) A farmer whether he had availed the loan for raising the crop or not, can also be granted post-
harvest finance i.e. extension of crop loan for a maximum period of twelve months against
pledge/hypothecation of produce or pledge of warehouse receipt covering his farm produce in case
such farmer also owes crop loan to the Bank, the out standings in the crop loan account should be
adjusted from the post-harvest advance.
A.F.S. NO.4 - DEVELOPMENT OF IRRIGATION POTENTIAL

Purpose
Loan facilities may be considered for Construction/ Deepening/renovation of wells, Purchase of oil
engine/electric motor and pump-set, Lift irrigation, Construction of pump house, Sprinkler irrigation,
Drip irrigation and windmills, Facility may also be considered for boring alone of the well.

A.F.S. NO.5 - DISTRIBUTION OF AGRICULTURAL INPUTS SUCH AS SEEDS FERTILISERS,
INSECTICIDES, ETC.
Purpose
Loans up to Rs 1 crore per borrower to dealers /sellers of fertilizers, pesticides, seeds, cattle feed,
poultry feed, agricultural implements and other inputs. Loans up to Rs 5 crore to cooperative societies
of farmers for disposing of the produce of members
Fishing Nets, Spare parts for oil engines/tractors/fishing boat engines, Petrol diesel pump run by Co-op.
Sugar Factory, Agricultural Produce Marketing Society, Fishermen Co-op. Society at Fisheries Jetty, etc.
A.F.S. NO.6 - FINANCING AGENCIES PROVIDING CUSTOM SERVICES TO FARMERS

Purpose
Credit facilities may be considered for
 purchase of tractor, bulldozer, fixed wing aircrafts and helicopters together, drilling rig for boring
wells/drilling of tube wells, combine harvesters, threshers, etc. for hiring on custom basis,
 establishment of cold storage, construction of godowns, stores, warehouses for providing storage
facilities to farmers on rental basis
 Purchase of truck and trailer units to be hired to farmers for transporting farm produce from farms
to processing factories or market yards.
A.F.S. NO.7 - FINANCING CONSTRUCTION OF FARM BUILDINGS AND STRUCTURES

Purpose
 For construction of “farm structures viz; bullock shed, implement shed, tractor and truck shed, farm
store, godowns and farm silos, dutch barn, water trough for farm animals, threshing yard, “gur”
making shed and fencing
 For construction of farm house cum dwelling unit (with one or more farm structures as above)
on own farm.(Minimum margin :15 %)
 For reimbursement of expenses incurred for farm house cum dwelling unit constructed recently
from own sources to good clients selectively, subject to additional terms and conditions
mentioned in the scheme. (It should have been constructed / purchased recently (not prior to 24 months
and Minimum Margin: 25%).
 Proposal for specific buildings such as dairy shed, poultry shed, pig house, cattle shed, dairy buildings, cold
storage plants should be considered under the respective schemes.
A.F.S. NO.8 - DEVELOPMENT OF HORTICULTURE INCLUDING RAISING FRUIT (ORCHARD)

GARDEN, PLANTATION AND NURSERY CROPS
Purpose
For establishing new or for maintenance of existing orchards, gardens, plantations and nurseries. All capital
costs for development of orchards, gardens, plantations (including purchase and installation of machinery,
construction of processing houses etc.) and maintenance costs (such as cost of plants, seedlings, grafts,
fertilizers, insecticides, pesticides etc., wages and salaries of permanent employees such as supervisors,
Malies etc. can be financed under the scheme.
A.F.S. NO.9 - LAND DEVELOPMENT

Purpose
Credit facility may be considered for bunding, terracing, leveling, Kyari preparation, drainage lay outs and
reclamation of saline, alkaline and ravine lands.

A.F.S. NO.10 - DEVELOPMENT OF DAIRY, POULTRY, PIGGERY, DUCK REARING, FISHERY
SERICULTURE (up to cocoon stage) AND APICULTURE
Purpose
To meet capital expenditure and working capital requirements of units engaged in dairy, piggery, poultry,
fishery, sericulture (up to cocoon stage), agriculture and rearing of sheep, goat and camel, for construction of
animal sheds, pig houses, poultry sheds, etc. for purchase of milch animal such as cows, buffaloes, breeding
pig, one day old chicks, layers, equipment/machinery, transport vehicles for purchase of feed and for meeting
other expenses such as labour, marketing etc.
Agriculture Advances – Margin and Security Norms:
1. Norms for Margin

Crop Loans / Short Term Loans
[a] Loan limit upto Rs. 1,00,000/- : NIL
[b] Above Rs. 1, 00,000/- : 15%
Term Loans
[a] Loan limit upto Rs. 1,00,000/- : NIL
[b] Above Rs. 1, 00,000/- :
i. Tractor and heavy agri. Machinery: 10%*
ii. Other loans: 15%*
Note:
* For small / marginal farmers, agriculture labourers and other specified categories, no margin by borrowers is
required where subsidy is available under special development programmes like SGSY, etc.
* For borrowers mentioned above where subsidy is not available, 5% margin by borrower is required (NABARD
requirement may be borne in mind).
2. Norms for Security

Crop Loans/ Short Term Loans
[a] Upto Rs. 1, 00,000/- - D P Note
- Hypo of crops
[b] Above Rs. 1, 00,000/- - D P Note
- Hypo of crops
- Mortgage of land or Third party Guarantee, etc
Investment loans where moveable assets are created
[a] Upto the cost of economic unit (wherever applicable) or Rs. 1 lakh whichever is lower.
- D P Note
- Hypo of Assets
[b] For loans above Rs. 1 lakh - D P Note
- Hypo of assets
- Mortgage of land # or third party guarantee
# For loans above Rs. 2 lakhs, mortgage of land is to be created. However, sanctioning authority
on merit may waive mortgage of land if creating mortgage is not possible owing to genuine
difficulties for loan limit upto Rs 3 lakhs.
[c] For Agri Clinic – Agri business
• Upto Rs. 5 lakhs - D P Note
- Hypo Assets
• Above Rs. 5 lakhs - D P Note
- Hypo Assets

- Mortgage of land or third party guarantee
Investment loans where moveable assets are not created (e.g. loans for dug wells, land
development, etc)
[a] Loans upto Rs. 10,000/- - D P Note
[b] Loans above Rs. 10,000/- - D P Note
- Mortgage of land*
* Where there are genuine difficulties in creating mortgage/ charge on land, Regional Authorities
may authorize branches to take third party guarantee and other collaterals for limit upto Rs
1,00,000/-.
Note: In states, where legislation on the lines suggested by the Talwar Committee has been passed, a simple
declaration creating a charge on the land offered as security will be sufficient. In such cases, mortgage of land
may not be necessary.
Baroda Kisan Credit Card (BKCC):

1) The purpose of BKCC is to provide adequate and timely credit for the comprehensive credit
requirement of farmers under single window concept for their cultivation and development as well as
consumption needs.
2) All farmers, registered share cropper’s and tenant farmers cultivating crops for a period not less than 5
years, individual tenant farmers and share croppers cultivating land on lease basis at least for a period
of 3 years are eligible for BKCC.
3) The limit will be by way of production line of credit for raising crops and 25% of crop production
expenses limit for farm maintenance .The consumption need for family maintenance for one year to
the extent of 25/35 % of the crop production expenses with a ceiling of Rs.100000/- can be considered
under BKCC. Short-term working capital and farm produce marketing loan (max. Rs.50.00 Lac) are also
considered with specific limit. For Category I(Green card) & Category II(Silver card) of BKCC having
25% of Crop production expenses maximum of Rs.100000/- can be sanctioned for consumption need
for family maintenance for one year. For Category III(Gold card) it is 35% Crop production expenses
maximum of Rs100000/- for family maintenence.
4) Investment line of credit for farm development, infrastructure development etc. need for personal loan
up to Rs.1 lac is considered under BKCC.
5) A concession in rate of interest on investment line of credit at the rate of 0.25% and 0.50% can be
considered to agriculture borrowers who is dealing with us for a period of above 3 and upto 5 years
(BKCC Silver card holder) and more than 5 years (BKCC Gold card holder) respectively with good track
record. No concession to new as well as existing borrowers having less than 3 years dealing (BKCC
Green card holder) with us. But this concession in rate of interest will not be clubbed with any other
concession including subvention.
6) Total limit under BKCC can be granted as per DLP of concerned authority.
7) For regular production line of credit, no margin to be fixed if it is on the basis of scale of finance. On
investment line of credit the margin is as per our individual scheme as prescribed and it can be reduced
to 10% by the sanctioning authority.
8) Credit balance under BKCC will fetch interest rate at Savings bank deposit.
9) The validity of the card is 5 years subject to renewal after 12 months. The cash withdrawal facility is
now extended by the issuing branch only.
10) The card will have 10 digits (6 digit alpha code of the branch and last four serial number of the card),
borrower’s signature, signature of issuing branch head with specimen number.
11) Bank has introduced personal accident policy for BKCC holders and branch to ensure that all BKCC
holders are covered under the policy.

12) Personal accident insurance for Rs.50000/- to one borrower per account. Entire Premium to be borne
by bank .The Bank will pay the premium amount at corporate level under which all new and existing
borrowers will be covered
13) Crop insurance available for crops under Pradhan Mantri Fasal Bima Yojana (PMFBY): The
crops that will be considered eligible for crop insurance under this scheme are- 1.Horticultural crops
2.Commercial crops 3.Rabi Crops & 4.Kharif Crops
For each type of crop the premium rate is different. For Kharif crop maximum premium payable by farmer is
2% of sum insured or actuarial rate whichever is less whereas for Rabi & annual crop it is 1.5% and 5%
respectively.The sum Insured will be the loan Sanctioned on the basis of Pre-defined sum insured based on
cost of cultivation i.e. district level crop wise scale of finance adopted by DLTC.The maximum sum insured for
crop insurance under PMFBY will be Land area multiplied by the Scale of Finance. The Bank has developed a
Finacle menu CROPINS for data entry in CBS on the day of disbursement.The another Menu i.e CROPREP
developed for generating the report.The verified report should be uploaded on crop insurance wave based
portal www.agri-insurance.gov.in.
Production Line of Credit:

Following requirements of farmers are to be taken into account while fixing Production Line of Credit under
BKCC scheme:
 Extending production loans for raising various crops based on scale of finance
 Other short term requirements like maintenance of tractor/farm implements, allied activities like dairy,
poultry, annual repairs, fuel, cost of feed, etc.
 Consumption needs
 Working capital for allied activities and non farm sector activities.
 Finance against storage receipts/produce marketing loans (against his own farm produce only) subject
to maximum of Rs.50/- lacs per farmer.
Investment Line of Credit:
 Extending credit facilities for horticulture crops, investment on farm developments such as
development of land/irrigation facility, purchase of tractor, farm machineries and equipments, farm
structures & buildings, draught animals/carts, milch cattle, transport vehicles, pre/post harvesting
processing equipments and practicing modern/hi-tech agriculture with need-based project/farm
infrastructures, plantation activities etc.
 Extending facilities for setting up units of allied activities like dairy, poultry, fisheries, piggery,
sericulture, etc. to supplement farm income/activities and also to ensure optimum utilisation of
available resources.
 Extending loans for off-farm activities/needs of the farmer like personal loans including purchase of
consumer durables, housing, subject to a maximum of Rs.1/- lac.
 Loans for redemption of loan availed by farmers from non-institutional lenders.
Eligibility:
All agriculturists with good track record of repayment or a fresh applicant having good reputation / report are
eligible for BKCC who are eligible for sanction of credit limit of Rs. 1000/- and above irrespective of their
period dealing with our branch. Recorded / registered share croppers and tenant farmers who are cultivating
crops for a period not less than five years in order to meet the production credit needs are also eligible.
However the individual tenant farmers / share croppers cultivating land on oral lease basis who are resident of
the village at least for a period of three years continuously and cultivating lands and raising crops for a
reasonably long period but not less than three years could also be issued BKCC with a farm credit limit up to
Rs. 10000/- in general and in exceptional cases not exceeding Rs. 25000/-

Type of Facility:
 Production Line of Credit in the nature of revolving Cash Credit and would provide for any number
of withdrawals and repayments within the limit.
 Investment Line of Credit: Demand/ Term Loan
Assessment of Loan:
A. Production Line of Credit:
The same shall be fixed equal to the sum of:
a. Farmer’s need for cultivation expenses based on scale of finance.
AND
b. Short term requirement like maintenance of tractor and farm implements/machineries not exceeding 25%
of the limit fixed for crop cultivation expenses in point (a) above,
AND
c. Working capital requirement for allied activities like dairy, poultry, etc. as well as non-farm sector activities
as may be assessed as per the need of projects being undertaken by him, subject to viability,
AND
d. Consumption needs, subject to the maximum of 25%/35% of Production Line of Credit fixed for sum of
point (a) and (c) above, depending upon the category of borrower. However, the same should not exceed Rs.
100,000/- per borrower.
B. Investment Line of Credit:

Quantum of finance for investment credit may be decided as per the needs expressed by the farmer for
various investment and other purposes, subject to following:
1. Farm income- 6 times of net annual income
Or
3 times of total annual farm receipts/ value of crops
Plus
Other income- 3 times of net anticipated annual income/ profit from allied activities/
salary income
Or
2. Value of Security- 75% of value of land mortgaged as collateral security And 100% of
value of other securities like assignment of LIC Policy (surrender value), pledge of KVPs/
NSCs/Bank’s TDR/Gold Ornaments etc.
( 1 or, 2 whichever is lower).
Line of Credit / Notional limit under BKCC:

At present the crop loan component which is the production credit under BKCC is given as a Cash Credit
facility for a period of 5 years, which is subject to review every year. The limit available is computed on the
basis of total land holding of the farmer, cropping pattern adopted by him during a particular season and
approved scale of finance for the crops grown. Thus the limit available changes whenever there is a change in
any of the components mentioned above. It is observed that the farmers and branches are generally averse to
increase the limit due to the workload / cost involved in execution of fresh documentation, preparation of fresh
proposals etc. This is found to ultimately adversely affect the increased off take and there by the growth in
outstanding level of crop loans. This also ends up in providing inadequate crop loan finance to farmers.
To overcome this problem, it has been decided to provide the facility of the Line of Credit / Notional limit
wherein the farmer’s actual requirement worked out on the basis of cropping pattern and land area, can be
increased by maximum 50% at the time of sanction of the facility. Though this limit will be valid for a 5 year
period, the drawing power/eligible limit for each year shall be based on the area of cultivation and scale of

finance for the proposed cropping pattern for that year. This is also expected to encourage the farmer to
undertake improved cultivation practices and bring more farmers into our fold due to the inbuilt advantage of
hassle-free facility of enhancement of the limits.
.Baroda Kisan Group Loan Scheme (Joint Liability Group):

1) A joint liability group is an informal group comprising 4 to 10 individuals coming together for the purpose
of availing bank loan either singly or through group mechanism, against mutual guarantees.
2) The JLG members are to engage in similar type of activities like crop production and must trust each other.
3) The members should live in the same neighbourhoods or in the same village and must be from the same
socio economic background and environment.
4) The members should be engaged in agricultural activity for a continuous period of not less than 1 year in
the area of operation of the branch.
5) The group member should not be a defaulter of any other formal financial institution.
6) The member to open an individual ‘No frill” account. However with mutual consent the group can open and
maintain SB account in the name of Group.
7) The JLG would prepare a credit plan for individual members and aggregate credit plan for the group to be
submitted to the bank.
8) The max. Loan amount per member not to exceed Rs.50000 and for group it is Rs. 5 lacs.
9) The credit need assessment of individual members will be based on the crop to be cultivated, available
land and capacity also. However this is only with the mutual consent of the members.
10) The credit facility to the JLG will be assessed by way of production / investment line of credit, as in case of
BKCC.
11) Personal accident insurance for Rs.50000/- to one borrower per account.
12) Crop insurance available for notified crops
BARODA MSE GENERAL CREDIT CARD (BMGCC)

 Existing “Baroda General Credit Card” scheme stands cancelled and new scheme “Baroda MSE General
Credit Card” has been implemented. Existing accounts are to be transferred into new scheme.
 It is scheme for non-farm entrepreneurial activity for both investment as well as working capital.
 Any individual will not be eligible if he is having any type of credit card except card for consumption need.
 Credit card limit will be fixed based on assessment of working capital requirement as well as cost of tool
and equipment.
 Maximum Credit Limit is Rs.100000/-
 Tenure for working capital is 12 months subject to annual review and term loan 84 months.
 Margin on Working capital 20% and term loan 25%.
 Card will be valid for 3 years subject to annual review.
 No insistence on security. CGTMSE coverage will be available
AGRI-CLINICS & AGRI-BUSINESS CENTRE SCHEME

Agriclinics : Agriclinics are envisaged to provide expert services and advice to farmers on cropping practices,
technology dissemination, crop protection from pests & diseases, market trends and prices of various crops in
the markets and also clinical services for animal health etc. which would enhance productivity of crops /
animals.
Agribusiness Centres : Agribusiness Centres are envisaged to provide input supply, farm equipments on hire
and other services.
Objectives
 To supplement the efforts of government extension system
 To make available supplementary sources of input supply and services to needy farmers
 To provide gainful employment to agriculture graduates in new emerging areas in agricultural sector.

ELIGIBILITY: Graduates of agriculture, horticulture, animal husbandry, forestry, dairy, veterinary, poultry
farming, pisciculture and other allied activities.
Project cost and coverage :

•Either individually or jointly/group basis.
•Individual -max. Limit Rs.20 lacs
•Group - max . Limit.Rs.100 lacs.
•Group number - max. 5, out of which 1 may be a management graduate with qualification & experience.
MARGIN
Upto 5 lacs - no margin
Above 5 lacs - 15 %
Subsidy: 36 % (44% for SC/ST, women) of project cost

Repayment: 5 to 10 years with grace period of max 2 years.
PRIORITY SECTOR LOAN AGAINST GOLD ORNAMENTS & JEWELLERY

Purpose: Agriculture or other
Eligibility:
1. Applicant must be true owner of gold ornaments / jewellery/ Coins
2. Should be local resident
3. Must have a savings a/c
Max Loan limit: Rs10.00 lacs, but it should be need based or advance value of gold or 75.00% of the
appraised value by the assayer whichever is lower among the three. Margin on silver is 50%.
Present Advance Value : At present, fixing the advance value of gold at Rs.2270/- per gram for 24 carat
purity with a provision for reduction in valuation by Rs.95/- per gram for every carat reduction. As such the
advance value per gram gold Jewellary of 22 carat purity is fixed at Rs.2080/-
The maximum loan limit allowed for advances against the pledge of silver jewellery/ornaments is Rs 3 lacs
only.
Facility: Working Capital (subject to annual review) or Demand Loan (not exceeding 12 months)
Period– Max. 12m
Assayers
1. To be identified by branch and approved by R.O.
2. To give minimum security deposit of Rs.5000/- for min 60months
3. Must be changed in every 0 2years
4. Will charge the fee for the assessment of gold
5. Must read/write local language
6. Should not be below 30years & above 60 Years age.
(Ref. Master Circular no BCC/BR/108/451 Dt-27/09/2016)

SCHEME FOR FINANCING TO FARMERS FOR PURCHASE OF FOUR WHEELERS:
Purpose: For purchase of new/used four wheeler including jeep, SUV, station wagon etc. for using in their
farm management activities. Used vehicle should not be more than 3 years old.
Eligibility/ Beneficiary: Farmers having family income sufficient to repay the loan. Farmers with minimum
land holding of 4 acres perennially irrigated land or 8 acres of seasonally irrigated lands.
The Zonal Head is authorized to reduce the land holding criteria by 50% i.e.up to 2 acres for perennially
irrigated lands and 4 acres of seasonally irrigated lands, on merits.
Maximum loan Amount: New Vehicle : Rs.15.00 lac.
Old Vehicle : Rs. 10.00 lac.
*Limit in case of New Vehicle - Zonal Head is authorized to increase the limit upto 50% i.e. for New
Vehicle – Maximum loan amount - Rs.22.50 lac Within the eligibility worked out as below:
1 Farm Income 4 times of net annual income OR
2 times of total annual farm receipts/value of crops,
whichever is lower
(Anticipated from the farm, taking into
consideration type of crops, area under
cultivation, etc.)
Plus / Or
Other income/income from allied 3 times of net anticipated annual income/profit from
activities and salary income if any economic activities/ allied activities (existing and proposed to
be undertaken) /salary income if any.
Margin: New vehicles: 15%

Used vehicle : 40%
Repayment Period
New vehicles : 84 months
Second hand vehicles : 48 months
Loan repayment will be synchronized with the income generation from the farm activities. The due dates to be
fixed taking in to account the time taken for receipt of sale proceeds of the crop. The instalments may be fixed
on half yearly/ yearly basis based on cropping pattern/income generation
Rate of Interest: One year MCLR + Strategic Premium+0.25% (Ref.BCC/BR/108/338 Dt-29/07/2016)
SCHEME FOR FINANCING TWO WHEELER (MOTOR CYCLE)

All new and existing farmers engaged in Agriculture and / or allied activities having repayment capacity
assessed by the branch based on crops grown / allied activities / other sources.
 Age minimum 21 years and maximum 65 years.
 Maximum amount 1 Lac
 Margin 10%
 Repayment period 5 Years
 Farm Income -6 times of net annual income OR 3 times of total annual farm
receipts/value of crops, whichever is lower (anticipated from the farm, taking into
Plus / Or
3 times of net anticipated annual Income/profit from economic activities/ allied
activities (existing and proposed to be Undertaken) /salary income if any
 FINACLE Code LA416 for account opening

FINANCE AGAINST WAREHOUSE / STORAGE RECEIPT:
Now a days, Agricultural Commodities market is emerging in a big way in the country and the growth has been
further propelled by the Futures Market now available as a result of setting up of the Commodities Exchanges,
namely MCX and NCDEX. Further, with the entry of Corporates in Agri business and greater awareness
amongst the farmers, the storing of Agri commodities for both preservation & better price realisation has
picked up.
Consequently, there has also been a spurt in the warehousing business, as also financing of these
commodities by the banks. With the institutional infrastructure in place, the potential for banks to finance this
market is huge.
Types of Warehouse/storage receipts eligible to be financed:

01. Warehouse Receipts issued by State/Central Warehouses upto the limits prescribed under the Scheme.
02. Warehouse/Storage Receipts under tie up arrangement with Collateral Managers upto the limit prescribed
under the scheme.
03. Warehouse Receipts issued by private registered Warehouses approved by concerned Zonal Head upto
individual limits of Rs.50.00 lakhs per farmer.
04. Negotiable Warehouse Receipts issued by Warehouses approved by Warehousing Development and
Regulatory Authority (WDRA) upto the limits prescribed under the scheme.
(All the three types of Warehouse receipt at point no. 1, 2 or 3 may or may not be negotiable warehouse
receipt issued by warehouses approved by WDRA to issue negotiable Warehouse Receipts)
Eligibility: Individual farmers who have produced the farm produce in their own farms, Food grain traders,
Millers & Arthias who store agri produce stocks in the Warehouses.
Loan Amount:
For farmers: Maximum Rs.50.00 lakhs
For Others: Maximum Rs.5.00 crores,to be classified in priority sector subject to eligibility (However for private
Godowns approved by WDRA, the maximum loan amount of Rs.2.00 crores only be considered by the
Branches subject to the discretionary lending power of the sanctioning authority. For limit above Rs.2.00
crores upto Rs.5.00 crores, activity clearance from the R. Head be obtained)
Margin: Minimum of 25%.

In case of tie up arrangement with Collateral Managers: 25% or as prescribed by Collateral Managers,
whichever is higher. (The margin should be increased if there is volatility of price for a particular commodity).
Nature of Facility: Cash Credit (Pledge). In case of Farmers, Demand Loan.
Rate of Interest:
For individual farmers upto Rs.50.00 lakhs: MCLR+Stretegic premium+1% All Others up to 5 crore:
MCLR+Stretegic premium+1%
Note: The rate of interest is inclusive of the charge payable to collateral managers.
Unified Processing charges: 50% of the applicable charges.
Commitment Charges: NIL
Other charges will be as per the extant guidelines
Tenor: Maximum 12 months.
In case of financing under tie up arrangement with Collateral Managers, as advised by them for commodity to
commodity but not more than 12 months. The proceeds shall be credited to the BKCC crop loan account,
wherever issued in case of financing to the farmers.

Security: Pledge of Warehouse Receipts.
(Ref.BCC/BR/105/357 DT-19-08-2013& BCC/BR/108/326 dt-18/07/2016)
BARODA KISAN TATKAL LOAN SCHEME (BKTL):
1)Purpose: An instant credit for farming community to meet the emergent funds requirements for Agriculture
and domestic purposes during off season such as purchase of bullock, implements, storage/packing material
,storage structures, onion sheds, purchase of pump set, pipes for irrigation etc. and also domestic
requirements for various religious ceremonies, festivals, emergent medical expenses and other emergency
expenses etc.
2) Eligibility: Individual Farmers/Joint borrowers who are existing Baroda Kisan Card (BKCC) Holders.
3) Type of Loan: Term Loan repayable in 3-5 years or Overdraft facility for a period of 12
months.
4) Maximum Loan amount:
Limit may be fixed as under: Maximum Tatkal Limit
a.BKCC Limit up to
Up to Rs.5.00 Lacs 50% of BKCC limit subject to
max of Rs.1.00 lacs
b.More than Rs.5 Lacs but up to Rs.2.00 lacs
Rs.10.00 lacs
c.More than Rs.10 Lacs but up to Rs.3.00 lacs
Rs.20.00 lacs
d.More than Rs.20 lacs Rs.5.00 lacs
This is subject to the condition that the Tatkal limit now being sanctioned should be within the eligible limit
under Investment Line of Credit in BKCC (as per details in circular No.BCC:BR:100/50 dated 23.02.2008 –
given below for ready reference) i.e. the income and value of security conditions should be met and this Tatkal
limit should be deducted from the eligible/available quantum of finance for investment credit also.
1 Farm Income 6 times of net annual income OR
3 times of total annual farm receipts/value of
crops, whichever is lower
(Anticipated from the farm, taking into

cultivation, etc.)
Plus
Other income/income from allied 3 times of net anticipated annual income/profit
activities and salary income if any from economic activities/ allied activities (existing and
proposed to be undertaken) /salary income if any.
Or
2 Value of assets. 75% of value of land holding plus 100% of value of
other securities like assignment of LIC Policy (surrender
value), pledge of KVPs/ NSCs/Bank's
TDR/Gold Ornaments etc. if required to enhance the
eligibility amount.
Whichever is lower amongst 1 Income and 2 Value of assets.
5) Security:
 Existing security under BKCC to be extended
 The existing norms of no collateral security up to Rs.1 lac to be followed if combined limit is within Rs.1
lac.
6) Repayment (For term Loan): In half yearly/yearly instalments depending upon the income generation
and cropping pattern.
7) Rate of interest: As per rates applicable to Farm Credit under Agriculture from time to time.
8) Penal Interest and other charges.- As per norms applicable to direct Agricultural advances from time to
time.
9) Finacle Codes:
The accounts are to be opened in the relevant scheme codes in Finacle as given below:
For Term Loans: LA420
For Overdraft Accounts: OD022
References: BCC: BR: 104/336 Dated: 28.09.2012, BCC: BR: 106/265 Dated: 12.07.2014
&.BCC: BR: 107/456 Dated: 15.09.2015
Scheme for Installation of Photo-voltaic Pumping System for Small Irrigation Projects:
Objective:--
 To utilize the solar energy for water pumping and support irrigation schemes under Agriculture.
 To provide sustainable economic activity to farmers in non-electrified or under electrified rural areas.
Eligibility: ---
 All persons/SHGs/JLGs/Small & Marginal Farmers engaged in cultivation of crops as owners of land or
permanent tenants or lease-holders (for a reasonably long period) non electrified or under electrified
rural areas..
 Possible water sources: Pits, pen dug wells, medium tube wells, doggies, tanks, farm ponds and
surface water from canals and rivers.
Nature of Facility: -- Term Loan
Project Cost: Project Cost as decided / approved by PAC of MNRE/NABARD. Ranges from Rs.308320 to
Rs.767200 depending on the models (Model -1 to Model-IV)
Margin: - Minimum 60% including subsidy available from Central & State Govts.
Capital Subsidy
1) The Ministry of New & Renewable Energy under JNNSM programme provides subsidy for off grid solar
applications (solar Water pumping) @ 30% of capital cost.
2) Additional subsidy could be provided by the State Government.
3) It should be noted that the scheme is financially viable only with subsidy of 60%.Hence the additional
subsidy/margin contribution to be ensured from the state govt/beneficiary.
Repayment The loan will be repayable in - 10 - years with one year grace period. The beneficiary may repay
the loan installment with interest earlier than the period if he so desires.
Classification:--Priority Sector (Direct Agriculture)
Special Terms & Conditions

1. Ground water Development: It should be ensured that the ground water
development programmes are implemented in “Safe” and “Semi Critical” Blocks, and technical clearance from
the State Government Department is obtained before extending the credit facility.
Spacing: The minimum spacing norms specified by the concerned department of State Government are to be
maintained between two wells.
2. Minimum acreage and sale of water: It is necessary that the beneficiary have the following minimum
area of land to be brought under irrigation to ensure viability of investments and repayment of loans in the
prescribed period.
Type of Structure Benefiting area (in ha)
(a) Dugwell 1.00
(b) Bore well 1.60
(c) Shallow Tube well 2.00
If the beneficiary’s own irrigated area is less than the area which can be irrigated by well/bore well, the
beneficiary can sell surplus water to the neighboring farms. The income from sale of water, if guaranteed, may
also be reckoned for the purpose of viability of investments up to a maximum of 50% of loan repayment
installment.
3. Selection and Installation of Pump sets (a) It should be ensured that the SPV financed under the
scheme are supplied by the reputed dealers.
(b) In case of second hand pump sets financed under the scheme, if any, Bank’s technical officer should
certify that the useful balance serviceable life of the second hand pump set is adequate to cover the
repayment period of the loan for pump set.
(c) Wherever loan is advanced for replacement of existing pump set by new pump set, it should be ensured
that there is no change in the HP of the pump set.
(d) The spacing criteria as stipulated in 2 above are adhered to while financing for pump sets as well.
4. After Sales Service
Bank shall ensure that adequate after sales services and repair facilities are provided by the
manufacturers/dealers installing the SPV pump set on beneficiaries well and that such service is provided free
of charge during the first five years of installation.
5. Wherever subsidy is available under any programme of the State/Central Government or any other
subsidy scheme, the Bank shall avail refinance net of subsidy.
6. While claiming refinance from NABARD, the bank may furnish blockwise details of different units
financed.
The scheme is financially viable only with a minimum subsidy of 60%.Hence it must be ensured that minimum
subsidy+margin is 60%.The subsidy rate may have to be higher depending upon the cropping patterns and
size of land holding.
(Ref: - BCC: BR: 104/338 dated 28th September 2012)
BARODA KISAN RUPAY CARD (BKRC):

Baroda Kisan RuPay Card is launched to avail hassle free banking facilities to farmers who avail production
credit under Baroda Kisan Credit Card from our Bank. To meet the requirements of BKCC customers to use
ADC (alternate delivery channels) like ATMs for cash withdrawal and also POS at merchant outlets for
purchase of Agriculture Inputs such as seeds, fertilizers and pesticides etc. This will ensure availability of funds
24*7 to farmers any time as per their needs, without visiting the branches.
Profile of Baroda RuPay Card:
The Card is RuPay enabled and is linked to BKCC account (scheme CC-003 only) to be used at our Bank’s ATM
network and NFS member ATMs in India. Card can also be used at selected RuPay enabled POS outlets.
However, at present card can be used at ATMs only. This card can be operated through PIN at ATMs and POS.
Withdrawal through Baroda Kisan RuPay Card is restricted up to Drawing Power within the overall operating
limit as per the extant guidelines applicable under our BKCC scheme.
 Issue BKRC compulsorily in all fresh BKCC accounts since GOI has instructed to cover 100%
farmers at the earliest.
 All existing standard BKCC accounts, including those of illiterate/unwilling persons, where BKRCs
have not been issued so far, should be issued cards on an urgent basis.
 The card has no issuance charges and also the added advantage of personal accident insurance
cover of Rs.1.00 lac, offered by Rupay.
 In case of Joint borrowers, the card can be issued to any one of the co-borrower.

Baroda Kisan Rupay card is not to be issued in following BKCC accounts.
 In case the account becomes NPA;
 In case there is overdue amount in the account;
 If the account is overdue for review;
 If documents have expired or LAD is due.
If any above irregularities are observed, freeze the “Debit” in the account through Finacle menu option ‘AFSM’.
The withdrawal by Baroda Kisan RuPay Card is restricted to the Drawing Power mentioned in finacle system.
As per the Line of Credit (LOC) under our BKCC, sanctioned limit is based on 150% of first year’s cultivation
expenses.
Correct Drawing power (DP) pertaining to current year only is fed in the finacle system, to avoid any excess
withdrawal beyond the permitted DP, before issuance of Baroda Kisan RuPay Card to the borrowes.
Waiver /reduction in charges applicable to Baroda Kisan RuPay Card and USP are of our RuPay Card:
Annual Fee: NIL for life time
Transaction charges for use of ATMs of NFS member banks:
Rs 16+service tax per cash withdrawal
Rs 6+service tax for per each non financial transaction
No of transactions permitted at ATM for cash Withdrawal per day: four
ATM cash Withdrawal Limit per day (at BOB ATM): Rs 25000/-per day Max Rs 15000/- per transaction (Subject
to balance available in account).
Cash withdrawal from other bank’s ATMs: Max Rs 10000/- per transaction subject to maximum of Rs 25000/-
per day (Subject to balance available in account).
(Ref.BCC: BR: 104/380 Date: 01 November, 2012.& BCC: BR: 105/41 Date: 4th February 2013
BCC/BR/107/465 Date: 18.09.2015)
Salient features of the Rupay Insurance Programme are as under:

1) All BKRC holders are eligible for insurance cover under this programme.
2) Insurance cover of Rs.1 lac per card to Baroda Kisan RuPay Card holders
(accidental death and permanent disablement only) is available.
3) The insurance premium is to be borne by NPCI.
4) This insurance programme will be an additional insurance cover over any existing insurance cover, viz.,
free Personal Accident Insurance Scheme (PAIS) cover upto Rs.50000/- for BKCC holders in our Bank.
(Ref: BCC: BR: 106/ 188 dated 22nd May, 2014)
Flow of Credit to Women:

RBI has advised all Public Sector Banks to earmark 5% of their Net Bank Credit (NBC) for lending to women.
Bank has introduced various measures to ensure flow of credit to women, some of which are as under:
a) In our Bank’s Education Loan scheme, 0.50% concession in rate of interest is granted to girl students.
b) Our Bank is having tie up arrangement with Bhartiya Yuva Shakti Trust for financing entrepreneurs where
preference is given to women beneficiaries.
c) Preference is also given to women directly involved in Small Enterprises especially under Government
sponsored schemes.
d) Special emphasis is given in credit linkage of Women Self Help Groups. We have set up two mobile
Microfinance loan processing centre exclusively for processing and disposal of loan application of Women Self
Groups, in the state of UP.

e) Special Training programmes for women are conducted in our Baroda Swarojgar Vikas Sansthan (RSETIs)
and preference is given to them for credit linkage. One of our RSETI (Ajmer) is exclusively dedicated for
training women beneficiaries to take up self employment ventures through bank finance.
New Farmer Campaign – ‘JODEN KISAN

New Farmer Campaign - 'JODEN KISAN - RABI' (01.10.2016 -- 31.12.2016)
Our bank had launched Joden Kisan campaign during the kharif season from 01st June 2016 to 31st August
2016 to give a boost to crop loan by adding more number of new farmers.
The objective would be to add maximum number of new farmers. BKCC - Finacle Scheme CC003.
(Ref. BCC: BR:108/441 16th Sept, 2016)
Dispensing with ‘No Due Certificate’ for Agri. Loan applications

Loan Particulars Due diligence Procedure
For all loan amounts up to Rs. 1 lac Self Declaration/Affidavit by the applicant
For all loan amounts more than Rs.1 Credit history check/obtaining credit reportfrom credit information
lacand up to Rs 5 lacs companies like CIBIL/ Equifax/Experian/Highmark etcwith whom
Bank has/will tie-up.
For loans above Rs.5 lacs In addition to credit history check asmentioned above, information
search by writing to all other Banks operating in thecentre where our
branch is functioning and the applicant’s residence/village, withan
auto deadline (Maximum 7 days).
The branch should send the letter byRegd.
(Ref.BCC:BR:107/74 16.02.2015)
Agriculture Marketting Infrastructure (AMI) Scheme
Govt. of India has now introduced Agri Marketing Infrastructure (AMI) scheme by merging the
erstwhile Grameen Bhandaran Yojana (GBY) and Scheme for Development / Strengthening of
Agricultural Marketing Infrastructure, Grading and Standardization (AMIGS).
The AMI Scheme envisages back-ended capital subsidy for credit linked investment in eligible storage and
marketing infrastructure projects. The eligible subsidy is 25% or 33.33% of the capital cost depending
upon the area and category of beneficiary
NABARD will release subsidy under the scheme to all the institutions which are eligible for NABARD
Refinance and to such other institutions GoI may approve for the purpose.
CONTRACT FARMING
Definition: Cultivation of crops by the farmers under a buyback arrangement with an agency engaged in
trading and/or processing.
Types:
1. Procurement contract
2. Partial contract
3. Total contract
Advantages for farmers:

1. Even Small farmers can grow high value crops
2. Can avail benefit of high tech support
3. Less production credit will require
4. Least post harvest loss
5. Price & Marketing risks are minimised
Advantages to Firms:
1. Can get produce as per specific requirement
2. Assured and uninterrupted supply
3. Time saving
4. Less marketing investments
Advantages for Banks :

1. Better recovery
2. Cross selling of products
3. Deposits from farmers
SELF HELP GROUPS:

Micro-credits are small loans offered to poor people to finance small income-generating activities. Generally,
these people have no access to normal banking services.
Micro-finance is the provision of financial support (not only micro-loans, but also micro- insurance, savings and
guarantees) - to these people.
Micro-finance institutions have experienced a backlash in recent years, not only because of the economic
crisis. There are people who feel MFIs have transformed over the years into larger financial institutions and
have lost sight of their social mission. High interest rates, in particular, have also come under fire.
Definition:
The Self-Help Groups (SHGs) are voluntary homogeneous association of poor people formed to attain a
collective goal. People who are homogeneous with respect to social background, heritage, caste or traditional
occupations come together for a common cause to raise and manage resources for the benefit of group
members. The size of the group ideally should be between 10 and 20 if there are more than 20 members then
it will attract registration process.
Viability of Self Help Groups:

Members should be resident of the area and be homogenous. Homogeneity can be in terms of caste,
occupation, farm size, sex or income level. There should be regular meeting, proper maintenance of records,
active participation of all members, conflicts management system etc.
Financing Of Self Help Groups:

Satisfactory internal savings and credit activity for at least 6 months and/or banking relationship through SB
account of 6 months.
The purpose of the loan should be left to the common wisdom of the group. It is advisable that the group
prepares a credit plan for its members and an aggregate of that is submitted to the bank.
Rate of interest will be applicable as prescribed by the bank from time to time. The SHG would be free to
prescribe appropriate repayment period and terms for loans to members as determined by the group. NABARD
provides 100% refinance on loan granted to SHG
What are the Books maintained by SHGs ?
1. Register of Members.
2. Minutes Book - containing rules & regulations also.
3. Saving and loan Register.
4. Savings and loan passbooks.
5. Cash book

6. Income and expenditure register.
Major functions of SHGs :

1. Savings and Thrift:- "Savings first - Credit later" should be the motto of SHGs.
2. Internal lending :- The purpose, amount, rate of interest, schedule of repayment etc. are decided by the
group it self. If demand is more than the funds available, the group decides whether to give loan to a
particular member and how much to give.
3. Discussing Problem :- The members, during meetings discuss their problems and try to find solutions for
the same.
Procedure for opening an S.B. account of SHG with the Bank:

Once resolution is being finalized and group starts functioning, it needs to have a Savings Bank A/c, mainly to
facilitate various activities / transactions. Savings Bank A/c in the name of SHG could be opened after
obtaining from the group the following documents:
Resolution from the SHG: The SHG has to pass a resolution in the group meeting, signed by all members,
indicating their decision to open SB A/c with the bank branch. This resolution should be filed with the bank.
Copy of the rules and regulations of the SHG: This is not a must. If the group has not formulated any
such rules or regulations, loans can be sanctioned without them. A savings bank account passbook may be
issued to the SHG. This should be in the name of the SHG and not in the name of any individual/s. The title of
SB a/c of SHG can be any name decided by the group members, not necessary to have word of Village /
Mohalla etc.Sometimes, it is being seen that resolution of SHG itself contains a para to open the SB a/c of the
SHG in a particular bank branch, then separate resolution in this regard need not be required.
Authorisation from the SHG (Operating Instructions): The SHG should authorise at least three
members, any two of whom, to jointly operate upon their account.
S.B. A/c application form duly filled-in: The resolution along with the filled-in application form duly introduced
by the promoter / facilitator may be filed with the bank branch.
KYC norms: The members who are authorized to operate the SB a/c should provide photo Identity proof as
per KYC norms
Processes for Credit-linkage of SHG by the Bank & repayment of loans:

Soon after an SHG is formed and one or two meetings held where the savings are collected, a savings bank
account can be opened in the name of the SHG. The following steps will explain to you how this can be done.
Step 1 – Opening of S/B Account for the SHG
SB A/c in the name of SHG could be opened after obtaining from the group the following documents:
Resolution from the SHG:
The SHG has to pass a resolution in the group meeting, signed by all members, indicating their decision to
open SB A/c with the bank. This resolution should be filed with the bank.
Authorisation from the SHG:
The SHG should authorise at least three members, any two of whom, to jointly operate upon their account.
The resolution along with the filled in application form duly introduced by the promoter may be filed with the
bank branch.
Copy of the rules and regulations of the SHG:

This is not a must. If the group has not formulated any such rules or regulations, loans can be sanctioned
without them. A savings bank account passbook may be issued to the SHG. This should be in the name of the
SHG and not in the name of any individual/s.
Step 2 – Conduct of internal lending by the SHG

After saving for a minimum period of 2 to 3 months, the common savings fund should be used by the SHG for
lending to its own members. The purpose, terms and conditions for lending to its members, rate of interest
etc., may be decided by the group through discussions during its meeting. Please remember that interest per
month is better understood in villages, than annual interest.
Step 3 – Assessment of SHGs

We need to know whether the SHG has been functioning well. We need this information as a banker, before
deciding on extending credit facilities to the SHG. A check list has been formulated by the NABARD to help us
to assess each SHG in a simple, but effective manner.
Step 4 – Sanction of Credit Facility to the SHG

The loan is always sanctioned and issued in the name of the group. The amount of loan to the SHGs can be to
the tune of 1 to 4 times of its savings, but our Bank has adopted 1 to 10 times of their corpus, with no ceiling
of amount (JMG-Rs.1.50 Lac, MMG II-Rs.2.50 Lac & MMG III- Rs.5.00 lac only).
Corpus / savings of the group includes following:

Group’s balance in the SB A/c.
Amount held as cash with the authorised persons.
Amount internally lent amongst the members.
Amount received as interest on the loans.
Any other contributions received by the group like grants, donation, etc.
Loan may be granted by the SHG for various purposes to its members. The bank does not decide the
purposes for which the SHG gives loans to its members. The purpose can be emergency needs like illness in
the family, marriage, etc. or buying of assets for income generation acquisition of assets. The group will
discuss and decide about the purpose for which loans are to be given to its individual members by the SHG.
Step 5 – Repayment of loan by the SHG

A repayment schedule is drawn up with the SHG, and the loan is to be repaid regularly. Small and frequent
instalments will be better than large instalments covering a long period. The group using their collective
authority discourages defaults. Every member is made to realise that the money belongs not only to him, but
also to the other members of the Group.
The group members are collectively responsible for the repayment of loans to the bank. It has been the
experience of bankers who lend to SHGs that the repayments from SHGs are far better when compared to
individual accounts.
JANASHREE BIMA YOJANA (Providing Insurance Cover to all women SHGs that are credit linked to Banks):
1. Objective: The object of this scheme is to provide life insurance protection to the rural and urban
poor persons living below poverty line and marginally above poverty line.
2. Eligibility: Members of the women SHGs credit linked by Bank and between 18 to 59 years of age.

3. Benefits : The benefits under the scheme are as below:
a) Natural Death : Rs.30000/-
b) Accidental Benefits :
S.N. Type of Loss Amount of coverage
(Rs.)
1 Life 75000
2 Permanent total disability due to accident 75000
3 Loss of 2 eyes or 2 limbs OR one eye and one limb in 75000
an accident
4 Loss of one eye or one limb in an accident 37500
c) Scholarship to children of insured members :

Scholarship of Rs.600/ per half year per child will be paid for maximum 2 children studying in 9th to 12th
standards for maximum period of 4 years as an add on benefit under ‘Shiksha Sahyog Yojana’.
4. Premium:
Rs.200/- per women SHG member per annum will be shared as under:
Rs.100/- to be paid by the member,
Rs.100/ will be born out of Social security Fund of LIC of India & will be paid directly by the fund.
GUIDELINES FOR PRIORITY SECTOR CLASSIFICATION:
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 by March 2017 of ANBC or Credit Equivalent Amount of
Off-Balance Sheet Exposure, whichever is higher, has been prescribed for Small and Marginal Farmers within
agriculture.
(iv) Micro Enterprises: A target of 7.5 percent by March 2017 of ANBC or Credit Equivalent Amount of Off-
Balance Sheet Exposure, whichever is higher, has been prescribed for Micro Enterprises.
(v) There is no change in the target of 10 percent of ANBC or Credit Equivalent Amount of Off-Balance 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 sub-targets 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 Off-Balance 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.
Target for the Priority sector Lending:
Priority Sector credit should be minimum 40 % for Domestic commercial banks / Foreign banks with 20 and
above branches (to be achieved by 2018) & 40 % for Foreign banks with less than 20 branches,(by2020 in
phase manner) of their Adjusted Net Bank Credit (ANBC) or credit equivalent amount of Off-Balance sheet
exposure whichever is higher of previous financial years (as on 31st March).
Adjusted Net Bank Credit (ANBC):

For the purpose of priority sector lending, ANBC denotes the outstanding Bank Credit in India minus bills
rediscounted with RBI and other approved Financial Institutions plus permitted non SLR investments in Held to
Maturity (HTM) category plus outstanding deposit under RIDF and other eligible funds with NABARD, NHB and
SIDBI on account of shortfall plus outstanding PSLCs minus Eligible amounts for exemption for issuance of
long term bonds for infrastructure and affordable housing minus eligible advance extended in India against
incremental FCNR/NRE accounts qualifying for exemption for CRR/SLR requirements.
Different Components of P/S Lending

The following categories of advances as mentioned below would be included in the Priority Sector Lending.
1. Agriculture.
2. Micro,Small and Medium Enterprises .
3. Educational Loans
4. Housing Loans
5. Export Credit
6. Social Infrastructure
7. Renewable Energy
8. Others
Within the overall main lending target of 40 per cent of Adjusted Net Bank Credit (ANBC) or equivalent amount
of Off-Balance sheet exposure, it should be ensured that:
Total agriculture :--

18 percent of ANBC or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher.
Agriculture
Farm Credit:
A. Loans to individual farmers [including Self Help Groups (SHGs) or Joint Liability Groups (JLGs), i.e. groups
of individual farmers, provided banks maintain disaggregated data of such loans], directly
engaged in Agriculture and Allied Activities, viz., dairy, fishery, animal husbandry, poultry, bee-eeping and
sericulture. This will include:
(i) Crop loans to farmers, which will include traditional/non-traditional plantations and horticulture, and, loans
for allied activities.
(ii) Medium and long-term loans to farmers for agriculture and allied activities (e.g. purchase of agricultural
implements and machinery, loans for irrigation and other developmental activities undertaken in the farm, and
developmental loans for allied activities.)
(iii) Loans to farmers for pre and post-harvest activities, viz., spraying, weeding, harvesting, sorting, grading
and transporting of their own farm produce.
(iv) Loans to farmers up to `50 lakh against pledge/hypothecation of agricultural produce (including
warehouse receipts) for a period not exceeding 12 months.
(v) Loans to distressed farmers indebted to non-institutional lenders.
(vi) Loans to farmers under the Kisan Credit Card Scheme.
(vii) Loans to small and marginal farmers for purchase of land for agricultural purposes

B. Loans to corporate farmers, farmers' producer organizations/companies of individual farmers, partnership
firms and co-operatives of farmers directly engaged in Agriculture and Allied Activities, viz., dairy, fishery,
animal husbandry, poultry, bee-keeping and sericulture up to an aggregate limit of `2 crore per borrower. This
will include:
(i) Crop loans to farmers which will include traditional/non-traditional plantations and horticulture, and, loans
for allied activities.
(ii) Medium and long-term loans to farmers for agriculture and allied activities (e.g. purchase of agricultural
implements and machinery, loans for irrigation and other developmental activities undertaken in the farm, and
developmental loans for allied activities.)
(iii) Loans to farmers for pre and post-harvest activities, viz., spraying, weeding, harvesting, sorting, grading
and transporting of their own farm produce.
(iv) Loans up to `50 lakh against pledge/hypothecation of agricultural produce (including warehouse receipts)
for a period not exceeding 12 months.Bank loans to Primary Agricultural Credit Societies (PACS), Farmers’
Service Societies
Agri Infrastructure
(1)Loan for warehouse, godown, cold storage.
(2)Loan for conservation and watershed.
(3)Loan for plant tissue culture, seed production,bio-fertiliser for 100 crore per borrower.
Ancilliary
(i) Loan for Food and Agro processing, Rs 100 crore per borrower.
(ii) Loans for setting up of Agriclinics and Agribusiness Centres.
(iii) Loans up to Rs. 5 crore to cooperative societies of farmers for disposing of the produce of members.
(iv) Loans to PACS,FSS, LAMPS for onlending.
Small and Marginal Farmers:

8% of ANBC has been fixed for small and marginal farmers. Small and marginal farmers will include
(i) Farmers with land holding upto 1 hectare are marginal farmers, and above one and upto two hectares will
be small farmers.
(ii) Loan to landless agri-labourers, tenant and oral lease and loan to SHG and JLG.
(iii) Loan to farmer producer companies and co-operative of farmers directly engaged in agri and allied
activities where membership of marginal and small farmers are not less than 75 % and whose land holding is
also not less than 75% of total land holding.
Micro , Small Enterprises and Medium enterprises

(i) Target for Micro is 7.5% of ANBC by 2017.
particulars In case of Mfg. sector, original In case of Service sector(Loan upto Rs.1.00
investment in P & M cr), original investment in Equipments
Micro Enterprises Upto Rs.25 lacs Upto Rs.10 lacs
Small Enterprises Above Rs.25 lacs and upto Rs.500 lacs Above Rs.10 lacs and upto Rs.200 lacs
Medium Above Rs.500 lacs and upto Rs.1000 Above Rs.200 lacs and upto Rs.500 lacs
Enterprises lacs
Education Loan –
Loans to individuals for educational purposes including vocational courses upto Rs.10 lakh irrespective of
sanctioned amount.

Housing Loans –
(i) Loans to individuals up to Rs.28 lakh with overall cost 35 Lacs in metropolitan centres with population
above ten lakh and Rs.20 with overall cost 25 lakh in other centres for purchase/construction of a dwelling
unit per family excluding loans sanctioned to bank’s own employees.
(ii) Loans for repairs to the damaged dwelling units of families up to Rs.2 lakh in rural and semi- urban areas
and up to Rs. 5 lakh in urban and metropolitan areas.
(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.
Export Credit
Domestic banks Foreign banks with 20 branches Foreign banks with
and above less than 20 branches
Incremental export credit over Incremental export credit over Export credit will be
corresponding date of the corresponding date of the preceding allowed up to 32 percent
preceding year, up to 2 percent of year, up to 2 percent of ANBC or of ANBC or Credit
ANBC or Credit Equivalent Amount of Credit Equivalent Amount of Off- Equivalent
Off-Balance Sheet Balance Sheet Exposure, whichever Amount of Off- Balance
Exposure, whichever is higher, effective is higher, effective from April 1, Sheet Exposure,
from April 1, 2015 subject to a 2017. whichever is higher.
sanctioned limit of `25 crore per
borrower to units having turnover of up
to `100 crore.
Social infrastructure: Loan upto 5 Crore per borrower for investing in school,health care facilities,drinking
water,sanitation in Tier II to Tier VI centres.
Renewable Energy:
(i)Loan upto 15 crore per borrower for solar basis power generators,bio-mas based generators,windmills and
hydel plants.
(ii)For individual hoseholds-Rs10 lacs per borrower.
Others
 Loans, not exceeding Rs 50,000 per borrower provided directly by banks to individuals and their SHG/JLG,
Overdrafts, up to Rs 50,000 (per account), granted against 'no-frills' / basic banking / savings accounts
provided the borrower’s household annual income in rural areas does not exceed Rs 100,000/- and for
non-rural areas it should not exceed Rs 1,60,000/-.
 Loans to distressed persons not exceeding Rs 50,000 per borrower to prepay their debt to non-institutional
lenders.
 Loans to distressed persons to repay debt to non-institutional lender upto 1 lac.
 Loans sanctioned to State Sponsored Organisations for SC/ST for the specific purpose of purchase and
supply of inputs to and/or the marketing of the outputs of the beneficiaries of these organisations.
 Overdrafts, up to Rs. 50,000 (per account), granted against basic banking / savings accounts provided the
borrowers household annual income in rural areas does not exceed Rs. 100,000/-and for non-rural areas it
should not exceed Rs. 1,60,000/-.
Weaker section:
In order to ensure proper attention in the matter of allocation of credit to following preferred sector, (known
as WEAKER SECTION as per the recommendations of Shri Krishnaswami Committee) RBI has stipulated that
25 % of Priority Sector advances i.e. 10 % of ANBC should go to these weaker sections beneficiaries.
Following types of finance are included under Weaker Section finance:

1. Small and Marginal Farmers: Farmers with landholding of up to 1 hectare is considered as Marginal
Farmers. Farmers with a landholding of more than 1 hectare but less than 2 hectares are considered as
Small Farmers. For the purpose of priority sector loans ‘small and marginal farmers’ include landless
agricultural labourers, tenant farmers, oral lessees and share-croppers, whose share of landholding is
within above limits prescribed for “Small and Marginal Farmer”.
2. Artisans, village and Cottage industries where individual credit requirement does not exceed Rs.100000/-.
3. Beneficiaries under Government Sponsored Schemes such as National Rural Livelihoods Mission (NRLM),
National Urban Livelihood Mission (NULM) and Self Employment Scheme for Rehabilitation of Manual
Scavengers (SRMS)
4. Beneficiaries of Differential Rate of Interest(DRI) scheme.
5. Advances to SC/ST beneficiaries.
6. Advance to Self Help Groups,
7. Loans to distress farmers indebted to non-institutional lenders,
8. Loans to distressed persons other than farmers not exceeding Rs 100,000 per borrower to prepay their
debt to non-institutional lenders;
9. Loans to individual women beneficiaries upto Rs 1 00,000 per borrower;
10. Loans sanctioned under (1) to (8) above to persons from minority communities as may be notified by
Government of India from time to time.
11. Overdrafts upto Rs. 5,000/- under Pradhan Mantri Jan-DhanYojana (PMJDY) accounts, provided the
borrowers’ household annual income does not exceed Rs. 100,000/- for rural areas and Rs. 1,60,000/- for
non-rural areas
(Ref. BCC: BR: 105/300 dt 23.07.2013, BCC: BR: 107/195 Dated 28.04.2015, BCC: BR :107/35dt.25.07.2015)
Following will be also part of PS Classifacation
1 Investment by banks in securitized assets.
2. Tranfer of assets through direct assignment/outright purchase.
3. Inter Bank participation certificate on risk sharing basis
4. Bank Loan to MFI for onward lending.
Non-achievement of Priority Sector targets:

Scheduled Commercial Banks having any shortfall in lending to priority sector shall be allocated amounts for
contribution to the Rural Infrastructure Development Fund (RIDF) established with NABARD and other Funds
with NABARD/NHB/SIDBI/ MUDRA Ltd. , as decided by the Reserve Bank from time to time. From financial
year 2016-17 onwards, the achievement will be arrived at the end of financial year based on the average of
priority sector target /sub-target achievement as at the end of each quarter.
The interest rates on banks’ contribution to RIDF or any other Funds, tenure of deposits, etc.shall be fixed by
Reserve Bank of India from time to time. The misclassifications reported by the Reserve Bank’s Department of
Banking Supervision would be adjusted/ reduced from the achievement of that year, to which the amount of
declassification/ misclassification pertains, for allocation to various funds in subsequent years.
Non-achievement of priority sector targets and sub-targets will be taken into account while granting regulatory
clearances/approvals for various purposes.
FARMERS’ CLUB PROGRAMME:

Objectives:
Farmers Clubs have been organised by our bank in the Service Area Villages with the sole objective of
improving the recovery climate for rural lending and creating better awareness about loan and deposit
products with the ultimate aim of building a Rural Credit Portfolio on a sound scale.Farmers’ Club are intended
to basically propagate the following five principles of “Development through Credit”.
a. Credit must be used in accordance with the most suitable methods of science and technology.
b. The terms and conditions of credit must be fully respected.
c. Work must be done with skill so as to increase production and productivity.
d. A part of the additional income created by credit, must be saved.
e. Loan installments must be repaid in time and regularly so as to recycle credit.
Benefits to the Branch :

 The formation of Farmers’ Club lead to better Banker-Borrower relationship in the area.
 Mobilisation of deposits.
 Increase in the credit flow and diversification of lending.
 Generation of new business avenues.
 Increase in loan recovery rate and decline in non-performing assets.
 Reduction in transaction costs of financial institutions/Banks.
 Socio Economic Development of the village.
 A win-win situation both for the Banker and the borrower.
The Farmers’ Club has also been instrumental in certain social welfare measures like arranging free eye check-
up camp. Animal Health Care Camp, Mass vaccination camp, community works like roads, check-dams,
afforestation etc.
Set Up of the Farmers’ Club:

 The Farmers’ Club is an informal forum in the villages.
 It can be promoted in a village/cluster of villages, generally in the Operational Area of a Bank.
 Club should have minimum of -10- members, no upper limit in the membership is envisaged.
 Every Club would have two office bearers - One ‘Chief Coordinator’ and the other ‘Associate Coordinator’.
 The office bearers would be elected by Club Members on a democratic basis for a term of two years.
 The office bearers should be residents of the area of the operation of the club. No Bank/NGO
representative can be an office bearer of the club.
 Bank branch can promote the clubs directly or engage Farmers’ Club promoting agencies like Krishi Vigyan
Kendras (KVKs), Agriculture Universities, NGOs, Corporates, etc.
Annual Maintenance Expenses:

 NABARD assistance to all agencies will uniformly be @Rs.10000/- per annum for a period of 3
years. The assistance will be towards meeting the following minimum and mandatory
expenses:
 Formation & maintenance expenses: Rs. 2000/-
 Awareness / Orientation meet at base level : Rs. 5000/-
 Meet with experts programme (2 programmes in a year) : Rs. 3000/-
 Total : Rs. 10000/-
 Assistance exceeding Rs. 10000/- may be met by the sponsoring agencies.
 NABARD will release assistance of Rs. 10000/- in two instalments (50% by way of release in advance and
the remaining 50% by way of reimbursement)
Developmental activities that can be taken up by Farmers Clubs:

Meet and Match Programme
Spot and Support Programme
Women Livelihood Development Programme
Leadership Development Programme

Incentive Scheme to Farmers Clubs:
# State Level Award Appreciation Certificates
1 Rs.1500/- Cash Award for highest 1. Certificate of commendation.
ranking three clubs. 2. Certificate of Merit.
3. Certificate of successful Launch.
2 Financial Support for field visits @
Rs.5000/- for the highest ranking one
club and Rs.2000/- each for next two
clubs.
District Level Awards:
First Prize - Rs.1000/-
Second Prize - Rs.750/-
Third Prize - Rs.750/-
“SAARTHEE” (Financial Literacy & Credit Counseling Centre)

Bank has opened Financial Literacy and Credit Counseling Centre as a CSR initiative. The Centre opened is
christened as “SAARTHEE” amply indicating its basic objective of steering those under financial distress and
educating others to avoid financial mess. The Bank has set-up “SAARTHEE” (Financial Literacy & Credit
Counseling Centre) in each Lead District.
Broad objectives
1. To provide financial counseling services to the interested persons including education on responsible
borrowing, proactive and early savings, and offering debt counseling to individuals who are indebted to
formal land / or informal financial sectors.
2. To educate people in rural and urban areas with regard to various financial products and service available
from the formal financial sector.
3. To make the people aware of the advantages of being connected with the formal financial sector.
4. To formulate debt restructuring plans for borrowers in distress and advise the beneficiary to submit the
same to formal financial institutions, including cooperatives for consideration.
5. To take up any such activity that promotes financial literacy, awareness of the banking services, financial
planning and amelioration of debt related distress of an individual.
Other important features/ objectives

1. Primarily the centre will not act as investment advice centre/ marketing centre for products of any
particular bank/ banks including those of the promoter Bank
2. The centre will work for the benefit of common persons/ individuals only
3. The clients of any bank can approach the centre
4. Persons who are not banking with any bank / not included in the formal financial system can approach the
centre
5. Financial literacy and credit counseling services are free of cost
BARODA SWAROJGAR VIKAS SANSTHAN (R-SETI):

Bank established Baroda Swarojgar Vikas Sansthan on 19th December, 2003 as a society under Society
Registration Act 1860 and also under Bombay Public Trust Act 1950 to impart knowledge and skill for
unemployed youth to enable them to take up self employment ventures. The Registered Office of the BSVS is
at Bank of Baroda, Apex Academy, Law Garden, Ellisbridge, Ahmedabad-380006.

AIMS & OBJECTIVES:
 To train youth, impart knowledge & skill for taking up self employment ventures.
 To develop attitude for working in rural areas, rural development projects.
 Assist youth in self employment and obtaining credit from financial institutions.
 Open and maintain training centres within the country.
 Conduct various training programmes – independent or in collaboration with other organizations.
 Provide expert guidance and assistance to the institutions / organizations / individuals.
 Provide counseling and consultancy/ guidance to youth for self employment and rural development.
 Take up research activity in self employment and rural development area.
 Take over and manage any existing unit with or without obligations as the governing board may
deem fit.
 Print, publish and exhibit film, journals, periodicals, books, lectures and other reading and pictorial
matter for diffusion of knowledge and training in self employment and rural development.
 Work for development of villagers and quality of life in rural area.
 Other activities as are necessary for effective implementation of objectives of the society as governing
body may decide from time to time.
BARODA GRAMEEN PARAMARSH KENDRA(BGPK):

It is an innovative idea towards Corporate Social Responsibility, showing Bank’s passion for agriculture and
rural development and to serve the common man.
For the rural community, especially for the farmers, there is a big “Knowledge Gap” in financial literacy, better
farming practices, technology adoption, diversification of opportunities, market linked prices, value addition
services offered by various institutions, women empowerment and also for employment opportunities for rural
youth. In addition to this, the deficiencies/ ignorance about credit related repayment during distress situations
call for credit counseling.
With a view to assist the rural community, the Bank has conceptualised “Baroda Grameen Paramarsh Kendra
(BGPK)” and its implementation by the dedicated team, which would build the confidence of the rural people.
Activities to be covered:
 Financial Education and Financial Inclusion
 Information sharing and problem solving on technical issues
 Credit counseling
 Synergy and liaison with other organisations and development activities
Deendayal Antyodya Yojana -National Rural Livelihood Mission (DAY-NRLM)

The Restructuring of SGSY as National Rural Livelihood Mission (NRLM) – Aajeevika by the Ministry of Rural
Development, Government of India has launched a flagship program National Rural Livelihood Mission
(NRLM) for promoting poverty reduction through building strong institutions of the poor, particularly
women, and enabling these institutions to access a range of financial services and livelihoods services by
restructuring Swaranjayanti Gram Swarojgar Yojana (SGSY) replacing the existing SGSY scheme, effective
from April 1, 2013 . The implementation of NRLM is in a Mission Mode. NRLM adopts a demand driven
approach, enabling the States to formulate their own State specific poverty reduction action plans.
NRLM enables the State rural livelihoods missions to professionalize their human resources at State,
district and block level. The State missions are capacitated to deliver a wide range of quality services to the
rural poor.
NRLM emphasises: continuous capacity building, imparting requisite skills and creating linkages with
livelihoods opportunities for the poor, including those emerging in the organized sector, and monitoring
against targets of poverty reduction outcomes. The blocks and districts in which all the components
of NRLM will be implemented, either through the SRLMs or partner institutions or NGOs, will be the intensive

blocks and districts, whereas remaining will be non-intensive blocks and districts. The selection of
intensive districts will be done by the states based on the demographic vulnerabilities. It will be rolled out in a
phased manner over the next 7 - 8 years. All blocks in the country will become intensive blocks over time. The
NRLM are renamed w.e.f march 29, 2016 in the name of Deendayal Antyodya Yojana -National Rural
Livelihood Mission (DAY-NRLM).
2. Key difference from SGSY:

NRLM is promoting a major shift from purely ‘allocation based’ strategy to a ‘demand driven’ strategy
wherein states have the flexibility to develop their own plans for capacity building of women SHGs
and Federations, infrastructure and marketing, and policy for financial assistance for the SHGs.
DAY-NRLM will identify the target group of poor through a ‘participatory identification of the poor’
process instead of using the BPL list as was done in SGSY. This will ensure that the voiceless, poorest of
poor are not ignored. In fact under NRLM, the first preference is given to the poorest of poor households.
DAY-NRLM will promote the formation of women SHGs on the basis of affinity and not on the basis of a
common activity, as it used to be under SGSY. It is definitely possible that members who come together on
the basis of affinity could be having a common activity.
Unlike SGSY, theDAY- NRLM has taken a saturation approach and will ensure all the poor in a village are
covered and a woman from each poor family is motivated to join the SHG.
SHG Federations: All SHGs in a village come together to form a federation at the village level. The village
federation is a very important support structure for the members and their SHGs. The cluster federation is
the next level of federation. A cluster consists of a group of villages within a block. The exact configuration
will vary from State to State, but typically a cluster consists of 25 - 40 villages. The Village federations and
the Cluster federations are the two critical support structures for the SHG s and their members in their long
journey out of poverty.
NRLM will provide continuous hand-holding support to SHGs, and their federations. This was missing in
SGSY. Under NRLM this support will be provided to a great extent by capacitating the SHG federations
and by building a cadre of community professionals from among the poor women. The federations
and the community professionals will be imparted the necessary skills by the mission.
The objective of DAY -NRLM is to ensure that SHG s are enabled to access repeat finance from Banks, till
they attain sustainable livelihoods and decent living standards. This was missing in SGSY, where the
emphasis was on one time support.
Women SHGs and their Federations:

Women SHGs underDAY- NRLM consist of 10-15 persons. In case of special SHGs i.e. groups in the difficult
areas, groups with disabled persons, and groups formed in remote tribal areas, this number may be a
minimum of 5 persons.
NRLM will promote affinity based women Self –help groups. Only for groups to be formed with Persons
with disabilities, and other special categories like elders, transgenders, NRLM will have both men and
women in the self-help groups.
SHG is an informal group and registration under any Societies Act, State cooperative Act or a
partnership firm is not mandatory vide Circular RPCD. No. Plan BC.13/PL-09.22/90-91 dated July 24th, 1991.

However Federations of SHGs formed at village level, cluster level, and at higher levels are to be
registered under appropriate acts prevailing in their States.
Financial Assistance to the SHGs

Revolving Fund (RF): DAY-NRLM would provide a Revolving Fund (RF) support to SHGs in existence
for a minimum period of 3/6 months and follow the norms of good SHGs, i.e they follow ‘Panchasutra’ –
regular meetings, regular savings, regular internal lending, regular recoveries and maintenance of proper
books of accounts.
Only such SHGs that have not received any RF earlier will be provided with RF, as corpus, with a minimum of
Rs. 10,000 and up to a maximum of Rs. 15,000 per SHG.
The purpose of RF is to strengthen their institutional and financial management capacity and build a
good credit history within the group.
5. Capital Subsidy has been discontinued under DAY-NRLM:
No Capital Subsidy will be sanctioned to any SHG from the date of implementation of NRLM.
6. Community Investment support Fund (CIF)
CIF will be provided to the SHGs in the intensive blocks, routed through the Village level/ Cluster level
Federations, to be maintained in perpetuity by the Federations. The CIF will be used, by the Federations, to
advance loans to the SHGs and/or to undertake the common/collective socio-economic activities.
7. Introduction of Interest subvention:

NRLM has a provision for interest subvention, to cover the difference between the Lending Rate of the
banks and 7%, on all credit from the banks/ financial institutions availed by women SHGs, for a maximum
of Rs 3,00,000 per SHG. This will be available across the country in two ways:
i. In 150 identified districts, banks will lend to all the women SHGs @7% upto an aggregated loan
amount of Rs 3,00,000/- . The SHGs will also get additional interest subvention of 3% on prompt payment,
reducing the effective rate of interest to 4%.
ii. In the remaining districts also, NRLM compliant women SHGs will be registered with SRLMs. These
SHGs are eligible for interest subvention to the extent of difference between the lending rates and 7% for the
loan upto Rs. 3 lakhs, subjected to the norms prescribed by the respective SRLMs. This part of the scheme
will be operationalized by SRLMs.
Role of Banks –
Opening of Savings accounts: The role of banks would commence with opening of accounts for all
the Women SHGs, SHGs with members of Disability and the Federations of the SHGs. The ‘Know Your
Customer’ (KYC) norms as specified from time to time by Reserve Bank of India are applicable for
identification of the customers.
Lending Norms: The eligibility criteria for the SHGs to avail loans:-
• SHG should be in active existence at least since the last 6 months as per the books of account of SHGs and
not from the date of opening of S/B account.
• SHG should be practicing ‘Panchasutras’ i.e. Regular meetings; Regular savings; Regular inter-loaning;
Timely repayment; and Up-to date books of accounts.
• Qualified as per grading norms fixed by NABARD. As and when the Federations of the SHGs come to
existence, the grading exercise can be done by the Federations to support the Banks.
• The existing defunct SHGs are also eligible for credit if they are revived and continue to be active for a
minimum period of 3 months.

Loan amount: Emphasis is laid on the multiple doses of assistance under NRLM. The amount of various
doses of credit should be as follows:
• First dose: 4-8 times to the proposed corpus during the year or Rs. 50,000 whichever is higher.
• Second dose: 5-10 times of existing corpus and proposed saving during the next twelve months or
Rs. 1 lakhs, whichever is higher.
• Third dose: Minimum of Rs. 2 lakhs, based on the Micro credit plan prepared by the SHGs and
appraised by the Federations/Support agency and the previous credit history
• Fourth dose onwards: Loan amount can be between Rs. 5-10 lakhs for fourth dose and/or higher in
subsequent doses. The loan amount will be based on the Micro Credit Plans of the SHGs and their members.
Type of facility and repayment:

SHGs can avail either Term loan or a CC loan or both based on the need. In case of need, additional loan
can be sanctioned even though the previous loan is outstanding. Repayment schedule could be as follows:
 The first dose of loan will be repaid in 6-12 installments
 Second dose of loan will be repaid in 12-24 months.
 Third dose will be sanctioned based on the micro credit plans, the repayment has to be
either monthly/quarterly /half yearly based on the cash flow and it has to be between 2 to 5
Years.
 Fourth dose onwards: repayment has to be either monthly / quarterly /half yearly based on the
cash flow and it has to be between 3 to 6 Years
Security and Margin:
No collateral and no margin will be charged upto Rs. 10.00 lakhs limit to the SHGs.
No lien should be marked against savings bank account of SHGs and no deposits should be insisted while
sanctioning loans.
(Ref. BCC:BR:105/287 dt 05.07.2013.& BCC:BR:108/317 Dt-14.07.2016)
PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP)

The guidelines are summarized as under :
 The scheme will be implemented through KVIC, KVIB and DICs.
 KVIC will be the nodal agency at National level for implementation of the scheme.
 E-tracking of applications under PMEGP has been introduced in the PMEGP scheme. At State Level
professional agencies have been outsourced to collect the data and upload the same into the system as
per the prescribed format.
 Branches should accept the applications of PMEGP from implementing agencies viz. KVIC, KVIB and
DICs only if they are received through e-tracking system.Margin money subsidy will not be released by
Ministry of MSME in cases which are not entered in the e-tracking system. It has now been decided by
KVIC that to ensure 100% compliance of e-tracking system all the implementing agencies i.e. KVIC,
KVIB and DICs will forward the PMEGP applications to the banks only after entering the applications in
the e-tracking system. No application will be forwarded to financing bank branches unless it is entered
in the e-tracking system.
 PMEGP sanctions and disbursement online in KVIC’s e-tracking system have become mandatory for
branches for all applications in 2013- 14 and onwards.
 The guidelines issued on extending collateral free loans should also be followed for financing MSE units
under Prime Minister’s Employment Generation Programme (PMEGP) Scheme and these advances are
eligible for cover under guarantee scheme of CGTMSE.
The scheme will be implemented through KVIC field offices and KVIBs in the rural areas of the country and
through DICs in both rural and urban areas.

Quantum and Nature of Financial Assistance
Categories of beneficiaries under PMEGP Beneficiary’s Rate of Subsidy
contribution (of project cost)
(of project cost)
Area (location of project/unit) Urban Rural

General Category 10% 15% 25%
Special (including SC / ST / BC/ Minorities/ Women, Ex- 5% 25% 35%
servicemen, Physically handicapped, NER, Hill and Border
areas etc.
Notes:
1. The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh.
2. The maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh.
3. The balance amount of the total project cost i.e. net of beneficiary’s contribution and amount of subsidy
will be provided by Banks as term loan.
Eligibility Conditions of Beneficiaries :

i. Any individual, above 18 years of age.
ii. There will be no income ceiling for assistance for setting up projects under PMEGP.
iii. For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the
business /service sector, beneficiaries should possess at least VIII std. pass educational qualification.
iv. Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP.
v. SHG (including those belonging to BPL provided that they have not availed benefits under any other
Scheme) are also eligible for assistance under PMEGP.
vi. Only one person from one family is eligible for obtaining financial assistance for setting up of projects under
PMEGP. The ‘family’ includes self and spouse.
vii. Institutions registered under Societies Registration Act, 1860
Viii. Production Co-operative Societies, and charitableTrusts
ix. Existing Units (under PMRY, REGP or any other scheme of Governmeni of India or State covernment) and
the units that have already availed Government Subsidy under any other scheme of Government of India or
State Government are not eligible.
Rate of interest and repayment schedule

Banks will charge applicable rate of interest on the facilities granted. Repayment schedule may range between
3 to 7 years after an initial moratorium as may be stipulated in the sanction.
Bank has to obtain an undertaking from the beneficiary before the release of bank finance that, in the event of
objection (recorded and communicated in writing) by KVIC/KVIB/State DIC, the beneficiary will refund the
Margin Money (subsidy) kept in the TDR or released to him after three years period. During this period, no
interest will be paid on the TDR and no interest will be charged on loan to the corresponding amount of TDR.
DRI ADVANCES:
The scheme is introduced in July 1972 with a view to give benefit of bank finance to weaker sections of the
society. At least 1% of total advances should be under DRI scheme of which 40 % should go to SC/ST
beneficiary.
Eligibility: An individual who is engaged in agriculture and /or allied activities collect or process forest
products, collect fodder to be sold to farmers, SC/ST, etc. and whose family income from all sources should
not exceed Rs. 24000/- p.a. in Urban /Semi urban area and Rs. 18000/- p.a. in Rural.
He/She should not hold land more than one acre irrigated land and 2.5 acres in case of non irrigated land.(
This does not apply to SC/ST Cases), should not employ workers on regular basis, SHG members who fulfill
above criteria can be considered under DRI Scheme, any handicapped person.
Limit: - Composite loan limit Rs.15000/- and Rs.20000/- in case of Housing Loan (raised from Rs. 6500/-
BCC:BR:99/211 dt. 03.07.2007)
Margin:- NIL. Rate of Interest 4% p.a.
Repayment:-:Generally -60- months.
National Urban Livelihoods Mission (NULM):

To reduce poverty and vulnerability of the urban poor households by enabling them to access gainful self-
employment and skilled wage employment opportunities, resulting in an appreciable improvement in their
livelihoods on a sustainable basis, through building strong grassroots level institutions of the poor. The mission
would aim at providing shelter equipped with essential services to the urban homeless in a phased manner. In
addition, the Mission would also address livelihood concerns of the urban street vendors by facilitating access
to suitable spaces, institutional credit, social security and skills to the urban street vendors for accessing
emerging market opportunities.
The Government of India ,Ministry of Hosing and Urban poverty Allevation (MoHUPA) has restructured the
existing Swarn Jayanti Shahri rozgar Yojana and launched National Urban Livelihoods Mission (NULM) .The self
Employment programme (SEP) component of NULM will focus on providing financial assistance through a
provision of intrest subsidy on loan to support establishment of Individual and Group enterprises and self help
group(SHGs) of urban poor.
1. Individual enterprises (SEP-I):
Nature of facility –Demand Loan/Term loan /Working capital
Limit-Minimum-Rs25000
Maximum-Rs. 2.00 lacs
Eligibility: Any urban poor Individual benificary having attained the age of 18 years desirous to setting
up a micro enterprises for self employment with maximum project cost of Rs.2.00Lacs
Margin- Up to Rs.50000/- NIL
Rs.50001/- to Rs.200000/- 10%
Repayment-TL/DL- Max upto 84months with 06 to 18 months moratorium subject to annual review
Working Capital- 12Months subject to annual review
2. Group enterprises(SEP-G):
Nature of facility –Demand Loan/Term loan /Working capital
Limit- Minimum-Rs25000
Maximum-Rs10.0 lacs
Eligibility: A Self Help Group or an SHG constituted under SJSRY/NULM or a group of urban poor desirous to
setting up a micro enterprises.All the member should have attained an age of 18 years at the time of
applying the bank loan. The group should have in 5 members with a minimum of 70% members from urban
poor families
Margin- Up to Rs.50000/- NIL
Rs.50001/- to Rs.1000000/- 10%
Repayment-TL/DL- Max upto 84months with 06 to 18 months moratorium subject to annual review
Working Capital- 12Months subject to annual review
(Ref.BCC:BR:108/418 Dt. 01st September 2016)
Micro Loan Factory:
The Micro Loan Factory has a mobile van with facilities and all related stationeries/ documents in SHG
financing. It is manned by officers who are duly authorized to sanction and disburse loans up to Rs.25,000 to
SHG on the spot and at their doorsteps. Bank is having two micro loan factories at Raebareilly and Sultanpur
Financial Inclusion Plan:

In the first phase, Govt. instructed to the banks to cover all the villages with the banking facilities having
population more than 2000 which was to be completed by 2012. For this, individual bank was empowered to
decide about the model for rolling-out FIP in their allocated area. At present, approx. 99.6% of total unbanked
villages have been covered under F.I. having population over 2000 and now, RBI has instructed the SLBCs to
chalk out the road map for the unbanked villages having population less than 2000.
The bank has also implemented Financial Inclusion Plan for providing banking services in the un-banked /
under-banked 20,000 villages having population of 2,000 and above during the period. The banking services
have been provided to these villages through information and communication technology based models like
smart cards, micro ATMs, mobile vans and brick and mortar branches, wherever feasible.
Financial inclusion is defined as ‘delivery of banking services, at an affordable cost, to the vast
sections of disadvantaged and low income groups’.
Importance & Scope of FIP:

 Huge potential at the Bottom of the Pyramid
 Innovative and effective ways of delivery of financial products
 Poor are bankable and Creditworthy
 Financing the poor is not poor financing
 Bank of Baroda has been in the forefront in financing the poor.
 Financial Inclusion is a business opportunity
 Skill building Efforts
 A new Alternate Delivery Channel
 Life-line of future banking in rural areas
Financial Inclusion is supposed as the ‘Life-line of future banking both on the part of Top-line (Volume) &
Bottom-line(Profit) business. “Financial Inclusion” became the most common terminology in the banking
industry & everybody either Government of India or Reserve Bank of India / Banks talk about the importance
and implementation of Financial Inclusion Project (FIP). Main reason to give more importance to FIP is, if more
than 50% of the Indian population will be financially included and each one of them even contributes a single
drop, it can create a big impetus for higher level/degree of economic growth of the country as well as for
banking industry, as huge amounts are scattered as petty cash in these financially-excluded families. Even
Management Guru, Mr. C.K.Prahlad also opined that growth and gold are at the bottom of the pyramid. The
BC Model of FIP has been adopted by our bank for implementation of Financial Inclusion, in which BCs
facilitate the financial transactions outside the bank premises, preferably the places suit to villagers. Since,
here we provide the banking facilities at their door-step, we can very well call it as “Alternate Delivery Channel
(ADC)”.
Generally, it is being perceived /considered by the bankers that Financial Inclusion is mainly a CSR initiative
but in reality, it is more an ADC, which is going to facilitate to the bankers in a big way, in days to come as
Govt. of India intends to go for all mass payments through banking channels only. These transactions are
generally of small ticket sizes but the operational cost for the bank is same. So, the speedy & smooth
implementation of FIP looks only way out for the banks and the bankers to keep the things under control. We

have adopted BC Model of FIP, which will be facilitated through mobile POS Machine. Here, an attempt has
been taken to compare our ATM Machine & POS Machine.
Automated Teller Machine Financial Inclusion POS Machine

Only literate person can operate if not Literate as well as illiterate both can operate, as it is
Biometric one supported by Biometric features
Not supported by any voice / announcement Supported by voice and on completion of transaction
announcement is done.
Transaction through ATM is safe as supported Transaction through FI PoS Machine is safer as supported by
by Password Biometric features.
Normally, it remains fixed/installed at one Normally, remains fixed / installed at one place
place
Only cash withdrawal allowed not cash Only cash withdrawal allowed not cash deposit
deposit
Less risk of robbery Comparatively high risk of robbery
Steps taken by the Bank to Promote Financial Inclusion:

 No Frill Savings Bank account with limited OD facility
 RD account with Money Back facility (Yashasvi Jama Yojana)
 Baroda Kisan Credit Card
 Micro Insurance product – one time premium for life coverage for 5 & 10 years for different sum insured
 A remittance product
 Introduced relaxed KYC norms as per RBI guidelines
 Introduced Basic saving Bank Deposit account (scheme code -SB150) under financial inclusion through
Business correspondents. Atm/Debit card facility also available in this scheme.
 Introduced of a new Micro –Insurance product “Baroda Swabhiman Suraksha”under financial inclusion.
“Baroda Swabhimaan Suraksha”, the product of our India First Life Insurance Company Limited, a low
premium micro-insurance product which may be sale at all link branches as well as through Business
correspondents under financial inclusion.
The salient features of the product are:
 It is a group life insurance policy issued by IndiaFirst Life insurance Company
 The product will be available to the FI deposit customers and also to those who avail credit facility
including inbuilt overdraft facility in SB Account.
 Sum Assured will range from Rs. 5000 to Rs.50,000/- for a minimum of 5 years.
 The customer of age band of 18 years to less than 61years would pay one time premium for a period
of 5 years at the rate of Rs. 20.99 per Rs.1000 for a period of 5 years
 There is a nomination facility allowed on insurance policy issued under this scheme
 The product would be sold to FI customers through all branches as well as through Business
Correspondents (presently in TCS serviced zones). BC can sell this product through PoS devices of the
Business Correspondents except in the following zone:
 Bihar, Orissa and Jharkhand Zone
 Rajasthan zone
 Eastern Zone
 MP & Chattisgarh Zone
 North Zone
The service provider for the above mentioned zones i.e. HCL/Vakrangee are yet to developthe application for
distribution of this policy through the PoS machine. We will be issuing instructions for the distribution of this
product through PoS in the above mentioned zonesimmediately after development of required application on

the PoS devices. However, the branches in the above mentioned zones may distribute the policy directly
through debit ofcustomer account in link branch for premium.
Process flow for issuance of the insurance to the customer will be as follows:
1. Declaration of Good health (DGH) is to be signed by the customer in case sum insured is above Rs.
25000/-
2. If the customer has not been able to understand the language i.e. English/Hindi; then a vernacular
declaration is to be obtained from the customer that he has understood the product and all the terms and
conditions.
3. The customer would request Link Branch to debit the premium from his linked account through a debit
voucher/cheque, for the insurance amount opted.
4. The customer’s with medical adversity which are not permissible under policy may not be covered under
this scheme.
5. The link branch would collect the premium by using FIINS menu option provided in the Finacle. The
premium will automatically get calculated by the system and gets credited to the IFL account no
29040200000149 with our bank’s Bandra Kurla Complex Branch at Mumbai. The job card for menu option
FIINS is enclosed for ready reference.
6. The system shall also flag the account for insurance transaction for future use.
7. Entire set of application has to be maintained properly by the link branch in a separate file for future
reference.
8. After the policy is issued the Certificate of Insurance (COI) can be downloaded at the branch using the link
http://www.indiafirstlife.com/DAP/iflUser.htm?role=4
9. The COI is to be printed at the branch and hand over to the customer against clear acknowledgement of
receipt of the COI. The acknowledgement of the COI should be kept along with set of application and
preserved at the branch.
Pradhan Mantri Jeevan Jyoti Yojana (PMJJBY) & Prdahn Mantri Suraksha Bima Yojana (PMSBY) :
Particulars PMJJBY PMSBY

Type of insurance Life insurance Accidental insurance
Eligibility All Aadhaar linked savings All Aadhaar linked savings
bank account holders. The bank account holders. The
insurance premium amount insurance premium amount
will be directly debited to will be directly debited to
their accounts. their accounts.
Sum insured Rs.2/-lacs Rs.2/-lacs
Period 1 year 1 year
Age limit 18-50 years 18-70 years
Cover Rs.2 lacs payable on death a. Accidental death and full
due to any reason. disability Rs.2 lacs.
b. Partial disability Rs.1 lac.
Yearly Premium Rs.330/- Rs.12/-
 Auto renewal facility for PMJJBY and PMSBY is available but if the sufficient balance in the account for
policy renewal not available. For this purpose Finacle menu option “PMRPT” is to be used.

Business Correspondent (BC) Model
 BCs from the local area is being engaged
 They are provided with hand held devices having facility for enrolments and transactions with bio-metric
authentication using smart cards.
 Authorised to collect and disburse cash.
 The system has been integrated with the Core Banking Solution
 RBI has now allowed BC appointed by one bank can also work for other banks and it will not only facilitate
the business continuity but also reduce the cost of operation further.
‘Business Facilitator’ Model ‘Business Correspondent’ model

 BF should be used to provide only non-  In addition to activities listed under the Business
financial support services. Facilitator Model, the scope of activities to be
The following services can be provided by the undertaken by the Business Correspondents will include
“Business Facilitators” to the bank: 1. Disbursal of small value credit,
1. Identification of borrowers as per KYC 2. Recovery of principal / collection of interest
norms and fitment of activities. However, 3. Collection of small value deposits
the branches are ultimately responsible 4. Sale of micro insurance / mutual fund products / pension
for adherence to the KYC norms. Hence, products / other third party products and
they have to ensure that KYC norms are 5. Receipt and delivery of small value remittances / other
scrupulously followed while opening loan payment instruments
accounts.
2. Collection & preliminary processing of The activities to be undertaken by the B.C. would be within
loan applications including verification of the normal course of the bank's banking business, but
primary information / data conducted through the entities indicated above at places
3. Creating awareness about loans and other than the bank premises.
liability products RBI has decided to increase the maximum distance criteria
4. Education and advice on managing money (distance between the place of business of a B.C. / B.F. and
and debt counseling the base branch) for the operation of the Business
5. Processing and Submission of applications Correspondent/ Business Facilitator for rural, SU and urban
to banks areas from the existing 15 KMs to 30 KMs.
6. Promotion and nurturing of Self Help
Groups / Joint Liability Groups
7. Post-sanction monitoring
8. Monitoring and handholding of Self Help
Groups / Joint Liability Groups / Credit
Groups /Others
9. Follow-up for recovery
Ultra Small Branch:
Ultra Small Branches’ have established by the bank for effective coverage under Financial Inclusion. USB is
brick & mortar unit from where banking facilities will be provided to people and nearest branch from which it
will be attached, officer of link branch will visit occasionally to the USB for business canvassing & monitoring
the functions of the BCs. It is just like earlier concept of ‘Satellite Branch’.
Pradhan Mantri Jan Dhan Yojana:

PradhanMantri Jan DhanYojana is a scheme for comprehensive financial inclusion launched by the Prime
Minister of India, NarendraModi on 28 August 2014[1] He had announced this scheme on his first
Independence Day speech on 15 August 2014.
Run by Department of Financial Services, Ministry of Finance, on the inauguration day, 1.5 Crore (15 million)
bank accounts were opened under this scheme.
The scheme has been started with a target to provide 'universal access to banking facilities' starting with
"Basic Banking Accounts" with overdraft facility of Rs.5000after six months and RuPay Debit card with inbuilt
accident insurance cover of Rs. 1 lakh and RuPayKisan Card. In next phase, micro insurance & pension etc. will
also be added. Under the scheme:
1. Account holders will be provided zero-balance bank account with RuPay debit card, in addition to
accidental insurance cover of Rs 1 lakh(to be given by 'HDFC Ergo').
2. Those who open accounts by January 26, 2015 over and above the 1 lakh ₹ accident, they will be given life
insurance cover of 30,000(to be given by LIC).
3. After Six months of opening of the bank account, holders can avail 5,000 ₹overdraft from the bank.
4. With the introduction of new technology introduced by National Payments Corporation of India (NPCI), a
person can transfer funds, check balance through a normal phone which was earlier limited only to smart
phones so far.
5. Mobile banking for the poor would be available through National Unified USSD Platform (NUUP) for which
all banks and mobile companies have come together. PMJDY, Comprehensive Financial Inclusion based is
proposed be achieved under the six pillars as under:
Phase I (15thAugust ,2014-14th August,2015)-
 Universal access to banking facilities
 Providing Basic Banking Accounts with overdraft facility of Rs.5000 after six months and RuPay Debit card
with inbuilt accident insurance cover of Rs. 1 lakh and RuPayKisan Card.
 Financial Literacy Programme
Phase II (15th August 2015-15th August,2018)-

 Creation of Credit Guarantee Fund for coverage of defaults in overdraft A/Cs
 Micro Insurance
 Unorganized sector Pension schemes like Swavlamban
In addition, in this phase, coverage of households in hilly, tribal and difficult areas would be carried
out. Moreover, this phase would focus on coverage of remaining adults in the households and students.
 All the rural & semi urban areas of the country is proposed to be mapped into Sub Service Area (SSA)
comprising 1000-1500 households with an average 3-4 villages with relaxation in NE/ Hilly states.
 It is also proposed that looking to the viability of each centre around 74000 villages with population
more than 2000 which were covered by Business Correspondents under Swabhiman Campaign will be
considered for conversion into full fledged Brick & Mortar branches with staff strength of 1+1/1+2 in
the next three years.
 All the 6 lakh villages across the entire country are to be mapped according to the Service Area of each
Bank to have at least one fixed point Banking outlet catering to 1000 to 1500 households, called as Sub
Service Area (SSA). It is proposed that SSAs shall be covered through a combination of banking outlets
i.e branch banking and branch less banking. Branch banking means traditional Brick & Mortar
branches. Branchless banking comprises of fixed point Business Correspondents agents, who act as
representative of Bank to provide basic banking services.
 The implementation strategy of the plan is to utilize the existing banking infrastructure as well as
expand the same to cover all households. While the existing banking network would be fully geared up
to open bank accounts of the uncovered households in both rural and urban areas, the banking sector
would also be expanding itself to set up an additional 50,000 Business correspondents (BCs), more
than 7000 branches and more than 20000 new ATMs in the first phase .
 The comprehensive plan is necessary considering the learnings from the past where a large number of
accounts opened remained dormant, resulting in costs incurred for banks and no benefits to the
beneficiaries.
 The plan, therefore, proposes to channel all Government benefits (from Centre/State/Local body) to
the beneficiaries to such accounts and pushing the Direct Benefits Transfer (DBT) scheme of the Union
Government including restarting the DBT in LPG scheme. MGNREGS sponsored by Ministry of Rural
Development (MoRD, GoI) is also likely to be included in Direct Benefit Transfer scheme.
 Keeping the stiff targets in mind, in the first phase, the plan would focus on first three pillars in the first
year starting from 15th August, 2014.
 The target for setting up additional 50,000 BCs is quite challenging given the constraints of telecom
connectivity.
 In order to achieve this plan, phase wise and State wise targets for Banks have been set up for Banks
for the period 15th August, 2014 to 14th August, 2015.
 In order to achieve a ―demand‖ side pull effect, it would be essential that there is Branding and
awareness of Business Correspondent model for providing basic banking services, Banking Products
available at BC outlets and RuPay Cards. A media plan for the same is being worked out in consultation
with banks.
 A Project Management Consultant/Group would be engaged to help the Department implement the
plan.
 It is proposed to launch the programme simultaneously at National level in Delhi, at every State capital
and all district headquarters.
 A web-portal would be created for reporting/monitoring of progress.
 Roles of various stakeholders like other Departments of the Central Government, State Governments,
RBI, NABARD, NPCI and others have been indicated.
 Gram DakSewaks in rural areas are proposed as Business Correspondent of Banks.
 Department of Telecom has been requested to ensure that problems of poor and no connectivity are
resolved. They have informed that of the 5.93 lakh inhabited villages in the country (2011 census) only
about 50,000 villages are not covered with Telecom connectivity.
Launch of new product ― Baroda Swabhimaan Suraksha ‖ a Micro-Insurance product under

financial inclusion It is a group life insurance policy issued by India First Life insurance Company made
available to the FI deposit customers and also to those who avail credit facility including inbuilt overdraft
facility in SB Account.Sum Assured under the policy will range from Rs.5000 to Rs.50,000 for a minimum of 5
years.The customer would pay one time premium for a period of 5 years at the rate of Rs. 20.99 per Rs.1000
for a period of 5 years .This is available for individuals of above 18 yrs and less than 61 yrs. For Sum Assured
amount above Rs 25,000/-DGH(Deaclaration of Good Health) signed by the customer is required. Nomination
facility allowed on insurance policy issued under this scheme. NPS Lite can be used as a pension product under
financial inclusion drive and bank has launched an Incentive Scheme for registering new subscribers for
Swavalamban Scheme under NPS Lite.The Cash incentive will be payable to BusinessCorrespondents,Business
Facilitators, SHGs/NGOs/Associations etc. and staff members.
Important Details of Swavalamban Scheme under NPS-Lite As per PFRDA a subscriber can be
registered under NPS-Lite subject to followingconditions. (1) The subscriber should be between 18 – 60 years
of age as on the date of submission of his/her application to the Bank. (2) The subscriber should comply with
the KYC process carried out by the Bank, KYC guidelines as prescribed by the RBI are applicable in this case
also and (3) The subscriber contribution should notexceed Rs.50000/- per financial year. However the
minimum contribution is Rs.100/=. Under Swavalamban Scheme Government of India will contribute Rs.1000
per year to every NPS account opened during financial year 2012-13 to financial year 2016-17subject to below
mentioned conditions. _ Subscriber is not covered under employer assisted retirement benefit scheme andalso
not covered by social security schemes under any of the following laws :
1. Employee Provident Fund and Miscellaneous Provision Act, 1952
2. The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948.
3. The Seamen‘s Provident Fund Act, 1966.
4. The Assam Tea Plantation Provident Fund and Pension Fund Scheme Act, 1955.
5. The Jammu & Kashmir Employee Provident Fund Act, 1961
_ Subscriber contribution for Swavalamban in NPS-Lite is minimum Rs. 1000 and maximumRs.12000 per
annum ( this is similar under the NPS-UOS). 93
a_ Also there is a provision for recovery of Swavalamban benefits with penal interestin case the subscriber
gives false declaration
Atal Pension Yojana (APY): Atal Pension Yojana is a government-backed pension scheme in Indiatargeted
at the unorganised sector. It was originally mentioned in the 2015 Budget speech by Finance Minister Arun
Jaitley in February 2015.[1] It was formally launched by Prime Minister Narendra Modi on 9 May
in Kolkata.[2] As of May 2015, only 11% of India's population has any kind of pension scheme, this scheme
aims to increase the number.
In Atal Pension Yojana, for every contribution made to the pension fund, The Central Government would also
co-contribute 50% of the total contribution or Rs.1,000 per annum, whichever is lower, to each eligible
subscriber account, for a period of 5 years. The minimum age of joining APY is 18 years and maximum age is
40 years. The age of exit and start of pension would be 60 years. Therefore, minimum period of contribution
by the subscriber under APY would be 20 years or more.
Aadhaar would be the primary KYC document for identification of beneficiaries, spouse and nominees to avoid
pension rights and entitlement related disputes in the long-term. The subscribers are required to opt for a
monthly pension from Rs. 1000 – Rs. 5000 and ensure payment of stipulated monthly contribution regularly.
The subscribers can opt to decrease or increase pension amount during the course of accumulation phase, as
per the available monthly pension amounts.
PradhanMantri Jan DhanYojana (PMJDY)-Overdraft: Under Financial inclusion after implementation of

PradhanMantri Jan dhanyojana It has been decided by the government of India to devise a uniform SBOD
across the industry under PMJDY. General purpose loan to provide hassle free credit to low income
group/underprivileged customer to meet their exigencies without insistence onsecurity ,purpose or end use of
credit
Eligibility- Individuals having BSBD accounts, which are operated satisfactorily for at least six months .OD to
be granted to the earning member of family, preferably women of the house.There should be regular credits
under DBT/DBTL scheme /other verifiable source .account should be seeded with Adhaar for avoiding
duplicate benefit. Age of Of applicant between 18 years to 60 years.(Not eligible: minors,KCC/GCC
borrowers,more than one members of the same family) Period of sanction- 36 months to annual review of
accounts
Loan Amount-a) 4 times of Average monthly balance b) or, 50 % of credit summations in accounts during
the preceding 6months. c) or,Rs 5000/- whichever is lower. Interest rate:-Not exceeding 2 % above base
rate Other Features:-
 Mobile Number of the borrower/family members to be kept on record.
 Aadhaar number will remain seeded with NPCI during the period of Loan. Move out of Aadhaar for such
accounts will be restricted by NPCI

 SBOD account will be primary account to receive all subsidies/benefits. DBT should also be frozen to
such accounts till the currency of loan.
 NPCI will provide repository of Aadhaar seeding for SBOD to the Banks to verify any earlier seeding.
 Loan accounts will be subject to IRAC norms of RBI.
Credit guarantee cover: 1.Guarantee cover upto 60 % of default amount in PMJDY. 2. Banks will pay
guarantee fee @ 1% on loan outstanding at the end of each year
To know the Aadhaar seeding status and OD status of the customer,”UIDINQ” menu option in Finacle is
available. It is also mandatory to update the OD status of the account in NPCI repository so that the customer
will not be able to avail similar OD facility from other bank or our branches. For this purpose Finacle menu
option “HAPBSLN” is to be used.
(Refer-BCC/BR/107/177 dt. 20.04.2015).
Bank’s CSR initiatives:

 Baroda Swarojgar Vikas sansthan –Bank has established Baroda Swarojgar Vikas Sansthan (Baroda R-
SETI) in 2003 with an objective to provide training to unemployed youth particularly from rural and
semi urban areas to engage them in gainful self-employment enterprises.
 Financial Literacy and Credit Counseling Centres (FLCC): Four centres have been established by the
bank with a focus on imparting financial literacy to those who are in need and help those who are
struggling with debt with an acceptable solution set up in Bank’s Lead Districts.
 Baroda Grameen Paramarsh Kendra (BGPK): Set up with major objectives of Financial Education, Credit
counseling, Information sharing and problem solving on technical issues, Synergy and liaison with other
organizations for value added services and development activities more particularly in rural areas.
 Other Strategies
* Bank has adopted 101 villages during Centenary Year 2007- 08
* SHG credit Linkage:Bank has till date credit linked more than 1 lac SHGs and has disbursed more
than Rs. 700 crores to these SHGs. Bank has set up Mobile Micro Finance Loan Factory with a view to
provide credit & other banking facility to SHGs at their doorsteps.
 Farmers Clubs : Bank has sponsored over 3400 farmers clubs to increase bondage with farmers which
function as a catalyst for increasing the pace of financial inclusion among the farming community

ENGLISH

Direction:
Please read the following paragraph carefully and answer the questions given below it:
Bank believes in creating and maintaining Enterprise-wide strong credit & risk culture on an on-going basis.
The Bank strikes a balance between the business growth and the incremental risk for deciding the business
plan and strategy for each year, but as a matter of policy, the bank seeks to maintain a low risk profile,
however with due flexibility so as to capture remunerative business at all points of time.
Accordingly the bank mends its lending channel to suit its risk–return trade off policy suitably blended to
business needs. For the period under review, in addition to laying stress in meeting specific commitments in
terms of RBI and Government of India directives, the focus area and target markets are:
Small and Medium Enterprises (SMEs) are likely to grow faster in view of high priority being accorded to this
segment.
It is aimed that Retail Finance grows further with specific thrust on Housing Loans. Infrastructure Financing is
also accorded added focus.
Financing of need-based requirements of various sectors especially health, housing, education, employment;
manufacturing sector, agriculture including irrigation and promotion of exports on the lines of policy
announcements made by Government of India.
Considering the dynamic nature of Target Market and risk perception, Credit Policy Committee will identify the
focus industries and sectors to suitably capture business potential of the new emerging sectors from time to
time.
1. Bank believes in creating and maintaining a strong ___________culture on an on-going basis.
a) target
b)Business strategy
c) credit
d) risk
e) Credit & risk
2. The Bank strikes a balance between the business growth and the incremental risk for deciding the
_______for each year.
a) Risk plan
b) Credit Plan
c) Strategic plan
d) business plan
e) growth plan
3. Bank seeks to maintain a low risk profile as well as the due flexibility so as to capture __________.
a) remunerative business
b) credit risk
c) business risk
d) business targets
e) strategic targets.

4. Bank mends its lending channel to suit its ______trade off policy suitably blended to business needs.
a) Credit risk
b) risk–return
c) Market risk
d) Strategic risk
e) Business risk
5. Laying stress in meeting specific commitments in terms of RBI and Government of India directives, which
one is not the focus area.
a) Large Corporate
b)Housing Loans
c)Infrastructure Finance
d)Health
e) Agriculture
6. Credit Policy Committee identifies the focus industries and sectors to suitably capture business potential of
the new________.
a) Priority Sector
b) Manufacturing Sector
c) Agriculture Sector
d) Emerging sectors
e) Education sector.
Direction: Choose the word/group of words which is most similar in meaning to the following
words.
7. Abundant:
a) Plentiful
b) Scarce
c) Shortage
d) Deficient
e) Complete
8. Conceal:
a) Prevent
b) Paste
c) Hide
d) Confine
e) Limit

9. Credible:
a) False
b) Truce
c) Worth
d) Falter
e) Believable
10. Peasant:
a) Labourer
b) Worker
c) Caretaker
d) Farmer
e) House keeper
11. Compassion:
a) Kindness
b) Carelessness
c) Weakness
d) Dullness
e) Performance
Please fill in the blanks with the most appropriate word from those given below:
12. I ________ for my duties last Monday.
a) Join
b) Joined
c) Reported
d) Report
e) Admitted
13.________ is better than cure.
a) Treatment
b) Prevention
c) Caring
d) Health
e) Fitness
14. I am not sorry________what I have done.
a) To
b) And
c) Since
d) For

e) Of
15. There is nothing__________worry about..
a) To
b) On
c) For
d) In
e) From
16. Soldiers______hard for victory.
a) Try
b) Tried
c) Trying
d) Work
e) Fight
17. We ________searching for the circular for long.
a) Had
b) Have
c) Haven’t
d) Have been
e) Have to
18. Customers now expect Banks to ______satisfy but create a wow experience for them.
a) Only
b) Fully
c) Invariably
d) Definitely
e) Not only
19. Deteriorating asset quality has _____pressure on the profitability of Banks.
a) Let
b) Create
c) Cause
d) Causing
e) Put
20. ________ large scale retirement in the next few years, Banks are likely to face the challenge of grooming
the new recruits in a very short span of time.
a) By
b) With
c) Through
d) In view of

e) For
21. In wake of demonetization unified payment interface(UPI) is_____ to gain popularity among masses.
a) mostly
b) probably
c) likely
d) ideally
e) obsolutely
22. The norm_____has been that banks reduce their lending rates after Reserve bank Of India announces its
monetary policy.
a) till now
b) so far
c) upto now
d) till then
e) which
Direction: Identify the incorrect part of the sentence.If the sentence is correct as it is given and
'No correction is required', mark (e) as the answer.
23). I & Sonu /will take care /for the/activities on Monday

(a) (b) (c) (d) (e) no error
24.This is /the Player who win /the bronze/in the Competition.

25).The Golden rule is/ to behave with a person /as I willlike others /to behave with us.
26.).His statement/is very much/ similar about/ yours.

27.) My friend has been/ married with/ the richest man/ of this village.
28.) He left to /Mumbai for some/official work /this morning.

29.) Before make/a good presentation/you should/practice a lot.


30.) I do notknow/ why you did not go./ If I were you,/I should have gone.
Choose the most suitable preposition
31) Simran has an inclination _____ working in advances department.
(a) upon
(b) at
(c) in
(d) for
(e) on
32.) I beg _____ differ on this issue.
(a) of
(b) from
(c) by
(d) to
(e) on
33.).The Rajasthan Royals struggled______ score runs and were eventually defeated ____ the Delhi dare
Devils.
(a) for; from

(b) to; by
(c) to; from
(d) at; by
(e) at; from
34.) Stock statement is to be submitted to the bank ____the seventh of every month.
(a) of
(b) from
(c) by
(d) to
(e) on
35.) You must beware ______ fraudsters.
(a) of
(b) from
(c) by
(d) to
(e) on

36.) What is the time ____ your watch?
(a) of
(b) from
(c) by
(d) to
(e) on
37).She gazed ____ the beautiful scenery.
(a) at
(b) in
(c) by
(d) to
(e) on
Write the word opposite in meaning to the following words
38.) Reluctance:
(a) Refusal
(b) Dearth
(c) Acceptance
(d) Perseverance
(e) Disagreement.
39.) Retain:
(a) Regain
(b) Abandon
(c) Refuse
(d) Rebound
(e) Rigour
40). Approach:
(a) Retreat
(b) Calm
(c) Reverse
(d) Land
(e) Encroach
41.) Enormous:
(a) Big
(b) Great
(c) Massive
(d) Tiny
(e) Amorphous

42). Illuminate:
(a) Culminate
(b) Retaliate
(c) Shadow
(d) Incarninate
(e) Darken
43.) Adversity:
(a) Animosity
(b) Prosperity
(c) Complexity
(d) Favoritism
(e) Unanimity
44.) Cautious:
(a) careful
(b) caring
(c) care
(d) Lazy
(e) Careless
45.) Demolish:
(a) Prepare
(b) Create
(c) Break
(d) Build
(e) Flourish
Identify the correct meaning of the following words:
46.) Abbreviate:
(a) Shorten
(b) Create
(c) Elongate
(d) Comprehend
(e) Collate
47.) Buoyant:
(a) Light
(b) Disgraced
(c) Sorry
(d) Cheerful
(e) Sad

48) Hazardous:
(a) Useful
(b) Dangerous
(c) Useless
(d) Inflammable
(e) Breakable
49.) Dearth:
(a) Complete
(b) Death
(c) Prevent
(d) Preserve
(e) Shortage
50.) Extrovert:
(a) Favourable
(b) Extra
(c) Incoming
(d) Outgoing
(e) Stable
Fill in the blank with the correct Verb
51.) Call me _____ you need any help.
(a) Can
(b) Could
(c) Shall
(d) Should
(e) May
52.) You _____ proceed as per the approved plan.
(a) May
(b) Will
(c) Could
(d) Would
(e) Can
53.) The vigilant officer _______the fraud.
(a) Avoid
(b) Prevent
(c) Avert

(d) Averted
(e) Stopped
54.) Aditya cleared the exam in the first ______
(a) Attempt
(b) Try
(c) Trial
(d) Attempted
(e) Tried
Write the word similar in meaning to the following words
55.) Corpulent:
a.) Lean
b.) Gaunt
c.) Emaciated
d.) Obese
56.) Commence:
a.) To End
b.) To Begin
c.) Nearing Finish
d.) To Run
57.) Conjecture:
a.) Grave
b.) Outward
c.) To Guess
d.) To Claim
58.) Contradict:
a.) Predict
b.) To Support
c.) External
d.) To oppose by words

59.) Detest:
a.) Love
b.) To hate intensely
c.) Neglect
d.) To support
60.) Deteriorate:
a.) Appreciate
b.) Recover
c.) To make worse
d.) Strengthen
Q No Ans Q No Ans Q No Ans Q No Ans Q No Ans Q No Ans Q No Ans

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

Direction:
Please read the following paragraph carefully and answer the questions given below it:
Baroda Traders Loan (BTL) is one of the key products of Retail Loan basket available against the security of
immovable property/ies, which caters to the financial needs of business entities engaged in trading of
permissible goods. The product provides hassle free advances for trading activities and therefore has received
good response from the traders as well as our operational units. The credit limits are assessed on the basis of
the accepted projected turn over and the advance value of the property offered as security.
We have launched new Credit Rating Model for Traders Loans upto Rs.200/- Lacs. Hence, Credit Rating for
limits upto Rs.200/- Lacs under Baroda Traders Loan is to be done under the new Retail Rating Models (under
BTL Model) which is hosted on LAPS system. Facilities of limit more than Rs. 200/- Lacs shall continue to be
rated in BOBRAM.
Bank has increased the ceiling on maximum limit to be sanctioned under Baroda Traders Loan Scheme to
Rs.100/- lacs for rural branches Rs.300/- Lacs for Semi-Urban Branches, Rs.500/- lacs for urban branches and
Rs.1000/- Lacs for Metro Branches w.e.f. 23.05.216. Further, product “Baroda Traders Loan against Gold
Ornaments/Gold Jewellery/Gold Coins” has been discontinued.
As per the scheme guidelines of Baroda Traders Loan, Borrowers are not considered any ad- hoc/ excess
over the limit sanctioned under the Scheme. Based on the feed back received from Zones/Regions, a need was
felt to meet the emergent working capital requirement arising out of peak season requirements, delayed
payments by debtors, tax payment etc.
With a view to cater to such financial needs of our existing Baroda Traders Loan borrowers, a new Retail Loan
Asset product named “Baroda Traders Gold Card Scheme” has been launched. The Scheme provides for
sanctioning of additional limit to the extent of 20% of the sanctioned limit under Baroda Trader Limit or 70%
of realizable market value of immovable property (including realizable market value set aside for sanctioning of
regular Baroda Traders Limit), whichever is lower.
This should enable our operating units to satisfy the needs of our existing borrowers with good track record.
With the modification in ceiling on maximum limit coupled with launching of Baroda Traders Gold Card
Scheme, our Baroda Traders Loan product has become more competitive and robust.
1. BTL caters to the needs of which sector?
a) Corporate Sector
b) SMEs
c) Trading
d) Agriculture
e) Individuals
2. How is the credit limit of the traders assessed?
a) The credit limits are assessed on the basis of the accepted projected turn over and the advance value
of the property offered as security.
b) The credit limits are assessed based on the annual turnover.
c) The credit limits are assessed based on the projected turnover
d) The credit limits are assessed based on the advance value of the property offered as security
e) All of the above
3. The new rating model is used for the limits upto what amount?
a) Rs.500.00 lacs
b) Rs. 10.00 lacs
c) Rs.100.00 lacs
d) Rs.200.00 lacs
e) Rs 5.00 lacs
4. BOBRAM has to be used for what amount?
a) Above Rs.10.00 lacs

b) Above Rs.100.00 lacs
c) Above Rs.200.00 lacs
d) Above Rs.150.00 lacs
e) None of the above
5. What is the product discontinued for the Traders under Traders’ Loan?
a) Traders’ Loan against Gold Ornaments

b) Traders’ Loan against Gold Jewelry
c) Traders’ Loan against Gold Coins
d) Traders’ Loan against i,ii and iii as above
e) Traders’ Loan against Stock
6. What is the name of the newly introduced scheme for existing Traders’ loan
Borrowers ?
a) New Baroda Traders’ Loan

b) Baroda Traders’ Loan 2
c) Baroda Traders Gold Card Scheme
d) BOB Traders credit card scheme
e) None of the above
Direction: Choose the word/group of words which is most similar in meaning to the word printed
in bold as used in the passage:
7. KEY:
a) A means of access
b) explanation
c) important
d) waste
e) product

8. Basket:
a) Bag
b) Cover
c) Case
d) Cup
e) Group
9. Needs:
a) Requirements
b) Food
c) Money
d) Loan
e) Interest
10. Borrowers:
a) Customers
b) Depositors
c) Prospects
d) Traders
e) Traders who have availed BTL
11. Robust:
a) Coffee
b) Vigorous
c) weak
d) Dull
e) Perform
Please fill in the blanks with the appropriate words as mentioned below:
12. I ______the Bank ten years back. / I have _____
a) Join
b) Joined
c) Joining
d) Admit
e) Admitted
13. ______aim is to become the top executive of the Bank.
a) My
b) I
c) We
d) They

e) Our
14. I am sorry______what I have done.
a) To
b) And
c) Since
d) For
e) Of
15. There is nothing new ______the sun.
a) Under
b) Above
c) Over
d) From
e) Below
16. The soldiers die______our country
a) To
b) On
c) For
d) In
e) From
17. We have been searching______the circular
a) For
b) About
c) Around
d) On
e) To
18. Traditionally banking is associated with______of resources from public to lend them to needy and
deserving borrowers.
a) Sourcing
b) Raising
c) Accepting
d) Taking
e) Lending
19._______of assets is an activity which banks are allowed to undertake.
a) Leasing
b) Lending
c) Borrowing

d) Pledging
e) Consolidating
20. Banks have to play an important role in employment generation, poverty alleviation and nation building
________economic development.
a) By
b) With
c) Through
d) In view of
e) For
21. Please choose the correct sentence from the following:
a) Based on the value of security charged to the bank, the stipulated margin is reduced and the advance
value is calculated subject to overall limits.
b) Based in the value of security charged to the bank, the stipulated margin is reducing and the advance
value is calculated subject to overall limits.
c) Based on the value of security charged to the bank, the stipulated margin is reducing and the advance
value is calculating subject to overall limits.
d) Based on the value of security charged to the bank, the stipulated margin reduced and the advance
value calculated subject to overall limits.
e) Based the value of security charged to bank, the stipulated margin is reduced and the advance value
is calculated subject to overall limits.
a) The mechanisation, computerisation process in Indian Banks largely follow the recommendations of the
Rangarajan Committee.
b) The mechanisation and computerisation process in Indian Banks largely follow the recommendations
of the Rangarajan Committee.
c) The mechanisation and computerisation process in Indian Banks largely following
the recommendations at the Rangarajan Committee
d) The mechanisation and computerisation process in Indian Banks largely followed recommendations for
the Rangarajan Committee.
e) The mechanisation and computerisation process in Indian Banks largely following the recommendations
of Rangarajan Committee.

a) Cheque Truncation a process in which physical movement by Cheques with out a bank, between bank,
between banks and clearing house are curtailed or eliminated, being replaced by whole or in part by
electronic records of their content (with or without their images) for further processing and
transmission.
b) Cheque Truncation is a processes in which physical movement of Cheques within a bank, between
banks, between banks and clearing house is curtailed or eliminated, being replaced by whole or in part
on electronic records of their content (with or without their images) by further processing and
transmission.
c) Cheque Truncation are a process in which physical movements about Cheques within a bank, between
banks, between bank and clearing house is curtailed or eliminated, being replaced in whole or in part
by electronic records of their content (with or without their images) for further processing and
transmission.
d) Cheque Truncation is a processs in which physical movement for Cheques within a bank, between
bank, between banks and clearing house is curtailed or eliminated, being replaced by whole or in part
by electronic record of their content (with or without their images) for further processing and
transmission.
e) Cheque Truncation is a process in which physical movement of Cheques within a bank, between banks,
between banks and clearing house is curtailed or eliminated, being replaced by whole or in part by
electronic records of their content (with or without their images) for further processing and
transmission.
a) Nevertheless, to enable banks to take uniform and concerted action expeditiously, particularly to
provide financial assistance to agriculturists, small scale industrial units, artisans, small business and
trading establishments affected by natural calamities, the following guidelines are commended.
b) Nevertheless, for enable banks to take uniform and concerted action expeditiously, particularly to
trading establishments affected by natural calamities, the following guidelines is commended
c) Nevertheless, in enable banks for take uniform and concerted action expeditiously, particularly to
trading establishments affected by natural calamities, the following guidelines are commended
d) Nevertheless, to enable banks to take uniform and concerted action expeditiously, particularly for
provide financial assistance at agriculturists, small scale industrial units, artisans, small business and
e) Nevertheless, to enable banks for take uniform and concerted action expeditiously, particularly to
provide financial assistance to agriculturist, small scale industrial unit, artisan, small business and

a) The identification of the wilful default should be made keeping in view the track records of the
borrowers and should not be decided on a basis of isolated transactions/incidents.
b) The identification about the wilful default should be made keeping in view the track record of the
borrowers and should not be decide on the basis of isolated transactions/incidents.
c) The identification the wilful default should made keeping in view the track record of the borrowers and
should not be decided on basis of isolated transactions/incidents.
d) The identification of the wilful default should be made keeping in view the track record of the
borrowers and should not be decided on the basis of isolated transactions/incidents.
e) The identification of the wilful default should be make keeping in view the track record of the
borrowers and should not be decided on the basis of isolated transactions/incidents.
Direction: From the paragraph given below please choose the correct synonyms (meanings) as
numbered:
Vigilance (1) function is aimed at bringing about a higher order of morality (2) as well as rationality in the
conduct (3) of affairs of public service. Vigilance is not to be construed (4) as an administrative chore (5).
True vigilance acts proactively, aimed at preventing corrupt (7) practices, rather than reacting to acts of
corruption by way of detective and/or punitive (8) acts.
The success of vigilance functions in an organization is judged by the effectiveness (9) in prevention (10) of
unhealthy practices rather than by number of cases detected and punished.Vigilance, therefore, is not simply a
police function but one of management of human (6) conduct.
26. Characteristics of human beings

27. Behaviour
28. Watchfulness
29. Morally deprived
30. Right moral conduct
31. Stop from happening
32. Extremely severe
33. Impressive
34. Routine task
35. Interpret

Direction: From the paragraph given below please choose the correct antonym from the
numbered words:
Interest for Normal (1) Transit Period (NTP) as per FEDAI Rules for export (2) bills purchased (3) is to be
recovered separately at the time of purchase/ negotiation/discount of export bills. For realisation of export
bills purchased before expiry of Normal Transit Period (NTP) interest for unexpired (8) period is to be
refunded.
In case of early realisation of export bill purchased proportionate (5) interest will be refunded from the value
date of realisation i.e.credit (6) to nostro account in case of a foreign (7) currency bill, and debit to vostro
account in case of a Rupee bill, upto the last(9) date of normal transit period in the case of demand bill and
upto the notional due date / actual due date (which ever is earlier(4) ) in case of usance bill.
Such a refund shall become payable only on receipt of relative credit advice/ statement of account by bank.
Also, overdue interest and other charges, if any, at the applicable rates are to be charged for late (10)
realisation. The SITB will advise the SWAP Costs / Gains, if any, in the cases of early realisation.
36. Later
37. Debit
38. Import
39. Sold
40. Abnormal
41. Expired
42. Early
43. Domestic
44. Disproportionate
45. First
Direction: Which of the phrases (a), (b), (c) and (d) given below each statement should replace
the phrase printed in bold in the sentence to make it grammatically correct ? If the sentence is
correct as it is given and 'No correction is required', mark (e) as the answer.
46. According to the Dun & Bradstreet research (2012), the MSME sector in India is highly heterogeneous
in terms of size of the enterprises, variety of products and services, and levels of technology.
a) broadly heterogeneous in terms of the size

b) largely heterogeneous in terms of the size
c) highly heterogeneous in terms for the size
d) hugely heterogeneous in terms on the size
e) No correction required

47. While cyber-attacks have become more unpredictable and electronic payment systems vulnerable to new
types of misuse, it imperative that banks introduce certain minimum checks and balances to minimise the
impact of such attacks and to arrest/minimise the damage.
a) it is imperative that banks introduce

b) it are imperative that banks introduce
c) it is imperative that banks introduces
d) it is imperative that banks introducing
e) No correction
48. Our Bank has adopted a very balanced people strategy to create a composite and responsible
Human Resource culture in the Bank that can drive growth and also adequately face various challenges of the
current times, viz. the large retirements, massive induction of talent, huge training requirements and
challenges of succession and productivity.
a) Our Bank has adopt a very balanced people strategy

b) Our Bank has adopts a very balanced people strategy
c) Our Bank is adopted a very balanced people strategy
d) Our Bank has adopted a very balance people strategy
e) No correction
49. The Baroda Manipal School of Banking is a special initiative taken jointly by Bank of Baroda to
Manipal Global education to train students for a Banking career in Bank of Baroda on a “first-day, first-
hour” productivity model.
a) jointly with Bank of Baroda and Manipal Global education

b) jointly by Bank of Baroda and Manipal Global education
c) joint by Bank of Baroda and Manipal Global education
d) jointly for Bank of Baroda and Manipal Global education
e) No correction
50. Special efforts was made in the year under review to fulfill the growing aspirations of the employees
for faster career progression, thereby, motivating employees for higher productivity.
a) Special efforts were made in the year under review

b) Special efforts were made during the year below review
c) Special efforts were made during the year under review
d) Special efforts was made during the year below review
e) No correction
Q No Ans Q No Ans Q No Ans Q No Ans Q No Ans Q No Ans Q No Ans

1 c 9 a 17 a 25 d 33 9 41 8 49 B
2 a 10 e 18 b 26 6 34 5 42 10 50 a
3 d 11 b 19 a 27 3 35 4 43 7
4 c 12 b 20 e 28 1 36 4 44 5
5 d 13 a 21 a 29 7 37 6 45 9
6 c 14 d 22 b 30 2 38 2 46 e
7 c 15 a 23 e 31 10 39 3 47 a
8 e 16 c 24 a 32 8 40 1 48 e
Write in the below mentioned sentences whether the words in bold are common, proper or abstract nouns.
51. One Should always speak the truth.
a) Common
b) Proper
c) Abstract
52. I have two children.
a) Common
b) Proper
c) Abstract
53. Still waters run deep.
a) Common
b) Proper
c) Abstract
54. Who teaches you grammer.
a) a.Common
b) b.Proper
c) c.Abstract
55. Jawahar Lal Nehru was the first Prime Minister of India.
a) Common
b) Proper
c) Abstract
56. It was Edison who invented Phonography.
a) Common
b) Proper
c) Abstract

Choose the correct form of verbs in the following sentences:
57. Janet______Karate class every Sunday.
a) attented
b) attends
c) has attended
d) has been attending
58. The delivery man_____the parcel already.
a) delivered
b) has delivered
c) delivering
d) is delivering
59. The athletes______for Canada tomorrow.
a) left
b) leave
c) are leaving
d) have been leaving
60. Adi______his room for the past hour.
a) is painting
b) painted
c) had painted
d) has been painting
61. Last night the clouds_____in the sky.
a) are thundering
b) have been thundering
c) thundered
d) have thundered
62. The girl_____in the park when a dog entered into the park.
a) played
b) is playing
c) was playing
d) Plays

63. The meeting______due to lack of quorum.
a) is postponed
b) postponed
c) has postponed
d) has been postponed
64. Be patient. The circus____in a few minutes’ time.
a) is starting
b) starts
c) will start
d) will be starting
65. The bridge across the river_____two hundred years ago.
a) Built
b) is built
c) was built
d) had built
66. She_____when I arrived.
a) was leaving
b) left
c) has left
d) had left
67. When you arrive I_____.
a) will sleep
b) sleep
c) sleeping
d) will be sleeping
68. She_____a book when the light went off.
a) read
b) has read
c) will be reading
d) was reading
69. I_______in that town for 10 years before I moved to New Delhi.
a) lived
b) was living
c) will be living
d) had been living

70. I_____my friend yesterday.
a) met
b) will meet
c) am meeting
d) have met
Answer Key:
Ques. Ans. Ques. Ans. Ques. Ans. Ques. Ans. Ques. Ans.
51. C 55. B 59. C 63. D 77. D
52. A 56. B 60. D 64. B 68. D
53. A 57. B 61. C 65. C 69. D
54. c 58. b 62. c 66. D 70. A

REASONING
AND
PROBLEM SOLVING

REASONING AND PROBLEM SOLVING
A. Reasoning
Type -1
In each series, look for the degree and direction of change between the numbers. In other
words, do the numbers increase or decrease, and by how much:
1. Look at this series: 2, 1, (1/2), (1/4)…………. What number should come next?
a). (1/3) c). (1/8)

b). (2/8) d). (1/16)
Answer: Option B
Explanation:
This is a simple division series; each number is one-half of the previous number. In other terms to
say, the number is divided by 2 successively to get the next result.
4/2 = 2
2/2 = 1
1/2 = 1/2
(1/2)/2 = 1/4
(1/4)/2 = 1/8 and so on.
2. Look at this series: 7, 10, 8, 11, 9, 12, ... What number should come next?
A.7 B. 10
C.12 D.13
Answer: Option B
Explanation:
This is a simple alternating addition and subtraction series. In the first pattern, 3 is added; in the second, 2
is subtracted.
3.Look at this series: 22, 21, 23, 22, 24, 23, ... What number should come next?
A.22 B. 24
26
C.25 D.
Answer: Option C
Explanation:
In this simple alternating subtraction and addition series; 1 is subtracted, then 2 is added, and so on.
Type -2
In these series, you will be looking at both the letter pattern and the
number pattern. Fill the blank in the middle of the series or end of the
series.
4. SCD, TEF, UGH, ____, WKL

A.CMN B. UJI
C.VIJ D.IJT
Answer: Option C
Explanation:
There are two alphabetical series here. The first series is with the first
letters only: STUVW. The second series involves the remaining letters:
CD, EF, GH, IJ, KL.
5. CMM, EOO, GQQ, _____, KUU

A.GRR B. GSS
C.ISS D.ITT
Answer: Option C
Explanation:
The first letters are in alphabetical order with a letter skipped in between each segment: C, E, G, I, K. The
second and third letters are repeated; they are also in order with a skipped letter: M, O, Q, S, U
Type -3
Three of the words will be in the same classification, the remaining one will not be. Your answer will be the
one word that does NOT belong in the same classification as the others.
6. Which word does NOT belong with the others?
A.inch B. ounce
C.centimeter D.yard
Answer: Option B
Explanation:
An ounce measures weight; the other choices measure length.
7. Which word does NOT belong with the others?
A.tulip B. rose
C.bud D.Daisy
Answer: Option C
Explanation:
Tulip, rose, and daisy are all types of flowers. A bud is not.
Type -4
Each problem consists of three statements. Based on the first two statements, the third
statement may be true, false, or uncertain.
8. Tanya is older than Eric. Cliff is older than Tanya.

Eric is older than Cliff. If the first two statements are true, the third statement is
A. true
B. false
C. uncertain
Answer: Option B
Explanation:
Because the first two statements are true, Eric is the youngest of the three, so the third
statement must be false.
9. All the trees in the park are flowering trees.

Some of the trees in the park are dogwoods.
All dogwoods in the park are flowering trees.
If the first two statements are true, the third statement is
A. true
B. false
C. uncertain
Answer: Option A
Explanation:
All of the trees in the park are flowering trees, So all dogwoods in the park are flowering trees.
Type -5
In each of the following questions, arrange the given words in a meaningful sequence and thus
find the correct answer from alternatives.

10.Arrange the words given below in a meaningful sequence.
.
1. Key 2. Door 3. Lock
4. Room 5. Switch on
A.5, 1, 2, 4, 3 B. 4, 2, 1, 5, 3
C.1, 3, 2, 4, 5 D.1, 2, 3, 5, 4
Answer: Option C
Explanation:
The correct order is :
Key Lock Door Room Switch on

1 3 2 4 5
11. Arrange the words given below in a meaningful sequence.
1. Poverty 2. Population 3. Death

5. Disease
4. Unemployment
A.2, 3, 4, 5, 1 B. 3, 4, 2, 5, 1
C.2, 4, 1, 5, 3 D.1, 2, 3, 4, 5
Answer: Option C
Explanation:
The correct order is :
Population Unemployment Poverty Disease Death

2 4 1 5 3
Type -6
In each of the following questions find out the alternative which will
replace the question mark.

12. CUP : LIP :: BIRD : ?
A.BUSH B. GRASS
C.FOREST D.BEAK
Answer: Option D
Explanation:
Cup is used to drink something with the help of lips. Similarly birds collects grass with the help of beak to
make her nest.
13. Ornithologist : Bird :: Archealogist : ?
A.Islands B. Mediators
C.Archealogy D.Aquatic
Answer: Option C
Explanation:
As Ornithologist is a specialist of Birds similarly Archealogist is a specialist of Archealogy.
Type -7
Here it is to verify what is true or not.
14. A train always has
A.Passengers B. Driver
Engine
C.Guard D.
Answer: Option D
Explanation:
There is no train without engine other options are valid when train is running.
15. Yesterday I saw an ice cube which had already melted due to heat of a nearby furnace.
A.Always B. Never
C.Often D.Sometimes
Answer: Option B
Explanation:
Since the ice cube had already melted due to the heat of a nearby furnace so after this ice cannot remain
as ice cube.
Type -8
Each of the following questions consists of five figures marked A, B, C, D and E called the
Problem Figures followed by five other figures marked 1, 2, 3, 4 and 5 called the Answer
Figures. Select a figure from amongst the Answer Figures which will continue the same
series as established by the five Problem Figures.
16. Select a figure from amongst the Answer Figures which will continue the same series
as established by the five Problem Figures.
Problem Figures: Answer Figures:
(A) (B) (C) (D) (E) (1) (2) (3) (4) (5)
A. 1 B. 2
C. 3 D. 4
E. 5
Answer: Option C
Explanation:
In each step, element at the upper-right position gets enlarged, inverts vertically and
reaches the lower-left corner; the existing element at the lower-left position, is lost
and a new small element appears at the upper-right position.
17. Select a figure from amongst the Answer Figures which will continue the same series
as established by the five Problem Figures.
(A) (B) (C) (D) (E) (1) (2) (3) (4) (5)
A. 1 B. 2
C. 3 D. 4
E. 5
Answer: Option B
Explanation:
In each step, the elements move in the sequence.
Type -9
Each of the following questions consists of two sets of figures. Figures A, B, C and D
constitute the Problem Set while figures 1, 2, 3, 4 and 5 constitute the Answer Set. There is
a definite relationship between figures A and B. Establish a similar relationship between
figures C and D by selecting a suitable figure from the Answer Set that would replace the
question mark (?) in fig. (D).
18. Select a suitable figure from the Answer Figures that would replace the question mark
(?).
(A) (B) (C) (D) (1) (2) (3) (4) (5)
A. 1 B. 2
C. 3 D. 4
E. 5
Answer: Option C
Explanation:
The half-shaded leaf rotates 135oACW and the unshaded leaf rotates 135oCW.
19. Select a suitable figure from the Answer Figures that would replace the question mark (?).
(A) (B) (C) (D) (1) (2) (3) (4) (5)
A. 1 B. 2
C. 3 D. 4
E. 5
Answer: Option B
Explanation:
Each one of the upper elements is replaced by an element similar to the lower element(s) and each one
of the lower elements is replaced by an element similar to the upper element(s).
Type -10
From amongst the figures marked (1), (2), (3) and (4), select the figure
which satisfies the same conditions of placement of the dots as in figure
(X).
20. Select the figure which satisfies the same conditions of placement of
the dots as in Figure-X.
A. 1 B. 2
C. 3 D. 4
Answer: Option D
Explanation:
In fig. (X), one of the dots lies in the region common to the circle
and the square only and the other dot lies in the region common to
all the three figures -the circle, the square and the triangle. In each
of the alternatives (1), (2) and (3), there is no region common to the
square and the circle only. Only fig. (4) consists of both the types of
regions.
21. Select the figure which satisfies the same conditions of placement of the dots as in Figure-X.
A.1 B. 2
C.3 D.4
Answer: Option C
Explanation:
In fig. (X), the dot is contained in the region common to the triangle and the circle only. Out of the four
alternatives, only fig. (3) contains a region common to the triangle and the circle only.

Type -11
22. Choose the figure which is different from the rest.
(1) (2) (3) (4) (5)
A. 1 B. 2
C. 3 D. 4
E. 5
Answer: Option A
Explanation:
The pins, equal in number to the number of sides in the main figure are attached to the midpoint of a side
of the main figure in case of figures (2), (3), (4) and (5). In fig. (1), these pins are attached to a vertex of
the main figure.
23. Choose the figure which is different from the rest.
(1) (2) (3) (4) (5)
A. 1 B. 2
C. 3 D. 4
E. 5
Answer: Option C
Explanation:
In all other figures, the two line segments are parallel to each other.
Type - 12

A cube is a 3 - dimensional solid object bounded by 6 sides, with three meeting at each vertex.
It features all right angles and a height, depth and width that are all equal ( length = height = width ).
Important Facts:
I. A cube has 6 square facesor sides. (from Img 1)
II. A cube has 8 points (vertices). (from Img 1)
III. A cube has 12 edges. (from Img 1)
IV. Only 3 sides are visible at a time ["Joint Sides"] and

these joint sides can never be on opposite side to each
other.
V. Most dice are cube shaped, featuring the numbers 1 to 6

on the different faces.
VI. 11 different ‘nets’ can be made by folding out the 6

square faces of a cube. (from Image 2)

Problem on cube/Dice
A cube (or a colour cube) can be categorised after cutting it into four categories:
I.) Central cube (Yellow): In middle of faces & has only one coloured side.
Total number of cubes with singe color on any side with the formula:
6(X-2)2
II.) Middle Cube (Green): In middle of edges and have two coloured sides.
Total number of cubes with singe color on any side with this formula:
12(X-2)
III.) Corner cube (Blue): Cubes on corners and have 3 coloured sides.
A cube can have only 8 cut-corner cubes with colors on three sides.
Hence answer will be always the same - 8.
IV.) Inner Cube (No Color): Cubes inside faces and has no coloured side.
We can find out the total number of cubes without any color on any side (inner cube) with this
formula: (X-2)3
Question Type 1 : Determining the opposite sides
Question Type 2 : Cutting a Colorful Cube
Examples: Question Type 1
1. Study these cubes and find out the numbers on opposite sides of front facing sides of these.
Explanation:
To solve this question we'll follow this rule - 'Only 3 sides are visible at a time (called "Joint Sides") and these
joint sides can never be on opposite side to each other.'
1. From cube A and B - 1, 2, 3, 4 and 5 can never be on opposite side of 3 (common number in cube A and
B).
Hence the answer will be = 6
2. From cube B and C - 1, 3, 4, 6, and 5 can never be on opposite side of 5
(common number in cube B and C).
the answer will be = 2
3. From cube A and C - 1, 2, 3, 5 and 6 can never be on opposite side of 1
(common number in cube A and C).
the answer will be = 4
Conclusion :
Opposite to 1 = 4
Opposite to 3 = 6
Opposite to 5 = 2
Examples: Question Type 2
A solid cube of each side 8 cm, has been painted red, blue and black on pairs of opposite faces.
It is then cut into cubical blocks of each side 2 cm.

How many cubes have no face painted?
A) 0 B) 4 C) 8 D) 12
Explanation : option C
Cubes have no face painted = Inner cubes

(No Colour): We can find out the total
number of cubes without
any colour on any side (inner cube) with

this formula: (X - 2)3
Implementation of formula: X = 4
(4 - 2)3 = 23 = 8
Type - 13
Choose the alternative which is closely resembles the mirror image of the given combination.
A. 1 B2 C3 D4
Answer: Option B
Type - 14
Choose a figure which would most closely resemble the unfolded form of Figure (Z).
A. 1 B 2 C 3 D 4

Answer : Option : C
Type - 15
Choose the alternative which is closely resembles the water-image of the given combination.
A1 B2 C3 D4
Answer : Option : D
Directions 1 : Study the following information carefully and answer the questions given
below:
Four friends Amrita, Deepa, Smita and Rhea complete their PhD in different number of years. The one
who took maximum time took eight years to complete her PhD while the one who took the least time
took only three years to complete it. Rhea took more time only than Amrita and completed her PhD in
five years. Smita did not take longer time than Deepa to complete her PhD.
Questions:
1. How many years did Amrita take to complete her PhD?

1) 8 2) 3 3) 4 4) Either 6 or 7 5) Cannot be determined
ANS : 2
2. How many years did Smita take to complete her PhD ?

1) 8 2) 3 3) 4 4) 7 5) Cannot be determined
ANS : 5
3. Who amongst the following took the maximum number of years to complete PhD ?
1) Amrita 2) Rhea 3) Smita 4) Deepa 5) Cannot be determined
ANS : 4
EXPLANATION : Rhea take more time only than Amrita that means in four above persons Amrita takes
leat time i.e 3 years and Rhea takes 5 years . Remaining two takes more than 5 years .
Smita did not take longer time than Deepa that means Deepa is taking maximum time for completion of
Ph D i.e 8 years and Smita is taking either 6 or 7 years.
4. How many meaningful English words can be formed with the letters TEID using each
letter only once in each word?
1) None 2) One 3) Two 4) Three 5) More than three
ANS : 4
Explanation : EDIT , TIDE, DIET
5. If it is possible to make only one meaningful word with the second, fifth, eighth and the
eleventh letters (when counted from left hand side) of the word DEVELOPMENT, which
would be the second letter of the word from the left ? If more than one such word can be
formed, give X as the answer. If no such word can be formed, give Z as your answer.
1) E 2) L 3) T 4) X 5) Z
ANS : 1
Explanation : E L M T ---- MELT
below:
Eight friends P, Q, R, S, T, V, W and Z, out of whom one is a Pilot, Professor, Businessman, Doctor,
Lawyer, Banker, Cricketer or an Architect (but not necessarily in the same order), are sitting among a
circular table, facing the centre.
 S who is a banker sits third to right of Z

 The professor and the architect are immediate neighbors of each other, neither the professor the
architect is an immediate neighbor of either Z or S.
 Cricketer and the pilot are immediate neighbors of each other. Neither Z nor W is a pilot.
 The one who is a professor sits second to the right of T who is a lawyer. V who is a cricketer is not
an immediate neighbor of the banker.
 Only R sits between the professor and the doctor. P sits third to the right of the pilot
Questions:
1. Which of the following pairs represents the immediate neighbours of the doctor ?
1) Professor-businessman 2) Pilot – professor 3) Cricketer - businessman 4) Lawyer – architect
5) None of these
ANS : 3
2. What is the position of the businessman with respect to the pilot?

1) Third to the left 2) Second to the left 3) Immediately to the right 4) Fourth to the right
5) Second to the right
ANS : 1
3. Who sits third to the right of the professor ?
1) The banker 2) Q 3) The cricketer 4) The lawyer 5) None of these
ANS : 3
4. Which of the following is true regarding R ?
1) He is a doctor 2) He is an immediate neighbour of the pilot 3) R sits between Q and T
4) He is an immediate neighbour of the professor 5) None is true
ANS : 4
5. How many people sit between the ‘banker’ and ‘W’ when counted in
anticlockwise direction from the banker?
1) None 2) One 3) Two 4) Three 5) Four
ANS : 3
6. Who amongst the following is a pilot ?

1) P 2) Q 3) R 4) Z 5) None of these
ANS : 2
7. What is the profession of Z ?

1) Businessman 2) Architect 3) Professor 4) Doctor 5) None of these
ANS : 4
8. Who amongst the following sits exactly between T and Q ?

1) Cricketer 2) Architect 3) Professor 4) Doctor 5) Banker
ANS : 5
Help
P Architect Q Pilot R Businessman S Banker T Lawyer V Cricketer W Professor Z

Doctor
below:
A, B, C, D, E and F are seated in a circle facing the centre. A and C are seated adjacent to each other
and E and B are also seated adjacent to each other. B is to the immediate left of F. There are two
persons between D and E. A is not seated adjacent to E.
Questions:
1. How many persons are seated between F and E if we go anticlockwise from F to E ?

1) 1 2) 2 3) 3 4) Cannot be determined 5) None of these
ANS : 3
2. Who is to the immediate left of E?

1) C 2) B 3) F 4) Cannot be determined 5) None of these
ANS : 1
Directions (Q. 3-5): Four of the following five are alike in a certain way based on their seating positions
in the above arrangement and so form a group. Which is the one that does not belong to the group ?
3. 1) BA 2) BD 3) CF 4) DE 5) FC
ANS : 3
4. 1) BEC 2) CAD 3) FDA 4) DFB 5) ADF

ANS : 3
5. 1) AC 2) EB 3) CE 4) AF 5) DA
ANS : 4
Help Seatig arrangement B F D A C E ( Anti Clock wise )
below:
Q, R, S, T, U and V are seated to a straight line facing North. S is second to the right of T and T is

second to the right of Q. R is to the left of Q and is second to the left of V.
Questions:
1. How many persons are seated between T and V?

1) 1 2) 2 3) 3 4) 4 5) None of these
ANS : 5
2. Four of the following five are alike in a certain way based on their seating position in the
above arrangement and so form a group. Which is the one that does not belong to the
group ?
1) QV 2) VT 3) US 4) UT 5) RQ
ANS : 4
3. What is Q's position with respect to S?

1) Third to left 2) Immediate Next 3) Second to left 4) Fifth to left 5) None of these
ANS : 3
4. Which of the following represents persons seated at the two extremes ?

1) RQ 2) US 3) SQ 4) SR 5) None of these
ANS : 4
5. If S : T and T : Q, then U : ?
1) T 2) V 3) Q 4) S 5) R
ANS : 2
Help Seatig arrangement R Q V T U S ( starting from left )
Study the following information carefully and answer the questions given below:
P, T, Q, U, S and R are standing in a straight line facing North. S is standing third from the left end of
the line. R is fourth to the right of T. Neither P nor R is at the end of the line. Q is second to the left of
P.
Questions:
1. Who amongst the following is standing fourth from the left end of the line?

1) Q 2) R 3) P 4) U 5) None of these
ANS : 3
2. If TQ : SP then, ? : RU
1) QS 2) TS 3) SP 4) QT 5) None of these
ANS : 3
3. Who amongst the following are at the extreme ends of the line?
1) TU 2) TR 3) RU 4) TP 5) US
ANS : 1
Directions (Q. 4-5): Four of the following five are alike in a certain way based on their positions in the
above arrangement and so form a group. Which of the following does not belong to the group ?
4. 1) SRP 2) QPS 3) PUR 4) TSQ 5) TSU

ANS : 5
5. 1) UR 2) PS 3) QT 4) SR 5) RP
ANS : 4
Help Seatig arrangement T Q S P R U ( Starting from left side )
6. Statements: Some red are blue. Some blue are grey. All grey are white. No white is black.
Conclusions: I. No black is grey. II. Some blue are white. III. Some black are red.
IV. No black is red.
(1) Only I and II follow
(2) Only either III or IV follows
(3) Only I and either III or IV follow
(4) Only I, II and either III or IV follow
(5) None of these
ANS : 4
7. Statements: All red are white. Some white are pink. Some pink are yellow. No yellow is blue.
Conclusions: I. No blue is pink. II. Some pink are red. III. Some blue are red. IV. Some blue are pink.
(1) None follows
(2) Only either I or IV follows
(3) Only I follows
(4) Only III & IV follow
(5) All follow
ANS : 2
8. Statements: Some blue are black. Some black are grey. All grey are red. All red are pink.
Conclusions: I. Some red are black. II. Some pink are black. III. Some pink are grey. IV. Some red are
blue.
(1) Only I & II follow
(2) Only II & III follow
(3) Only I, II and III follow
(4) All follow
(5) None of these
AN : 3
9. Statements: All green are pink. Some pink are black. Some black are blue. All blue are white.
Conclusions: I. Some black are white. II. Some blue are pink. III. Some pink are green. IV. No green is
white.
(1) None follows
(2) Only I and III follows
(3) Only III follows
(4) Only either I or II follows
(5) None of these
ANS : 2
10. Statements: Some blue are white. All white are red. All red are pink. Some pink are yellow.
Conclusions: I. Some yellow are red. II. Some yellow are white. III. All red are white. IV. Some yellow
are blue.
(1) None follows
(2) Only I follows
(3) Only II follows
(4) Only II & III follow
(5) None of these
ANS : 1
B.Problem solving:
1. A train running at the speed of 60 km/hr crosses a pole in 9 seconds. What is the length of the train?
A.120 metres B. 180 metres

C.324 metres D.150 metres
Answer: Option D
Explanation:
5 50
Speed= 60 x =
18 m/sec 3 m/sec.
50
Length of the train = (Speed x Time) = x9
3 m = 150 m.
2.If a person walks at 14 km/hr instead of 10 km/hr, he would have walked 20 km more. The actual

distance travelled by him is:
A. 50 km B. 56 km
C. 70 km D. 80 km
Answer: Option A
Explanation:
Let the actual distance travelled be x km.
x x + 20
Then, =
10 14
14x = 10x + 200
4x = 200
x = 50 km.
3. A sum of money at simple interest amounts to Rs. 815 in 3 years and to Rs. 854 in 4 years. The sum is:
A.Rs. 650 B. Rs. 690

C.Rs. 698 D.Rs. 700
Answer: Option C
Explanation:
S.I. for 1 year = Rs. (854 - 815) = Rs. 39.
S.I. for 3 years = Rs.(39 x 3) = Rs. 117.
Principal = Rs. (815 - 117) = Rs. 698.
4. There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of
Rs. 12,000 after 3 years at the same rate?
A. Rs. 2160 B. Rs. 3120

C. Rs. 3972 D. Rs. 6240
E. None of these
Answer: Option C
Explanation:
Let P = Rs. 100. Then, S.I. Rs. 60 and T = 6 years.

100 x 60
R= = 10% p.a.
100 x 6
Now, P = Rs. 12000. T = 3 years and R = 10% p.a.
10
C.I.= Rs. 12000 x 1+ 3- 1
100
331
= Rs. 12000 x
1000
= 3972.
5. The cost price of 20 articles is the same as the selling price of x articles. If the profit is 25%, then the
value of x is:
A. 15 B. 16

C. 18 D. 25
Answer: Option B
Explanation:
Let C.P. of each article be Re. 1 C.P. of x articles = Rs. x.

S.P. of x articles = Rs. 20.
Profit = Rs. (20 - x).
20 - x
x 100 = 25
x
2000 - 100x = 25x
125x = 2000
x = 16.
6. Two students appeared at an examination. One of them secured 9 marks more than the other and his
marks was 56% of the sum of their marks. The marks obtained by them are:
A. 39, 30 B. 41, 32
C. 42, 33 D. 43, 34
Answer: Option C
Explanation:
Let their marks be (x + 9) and x.

56
Then, x + 9 = (x + 9 + x)
100
25(x + 9) = 14(2x + 9)
3x = 99
x = 33
So, their marks are 42 and 33.
7. A is two years older than B who is twice as old as C. If the total of the ages of A, B and C be 27, the how
old is B?
A.7 B. 8
C.9 D.10
E. 11
Answer: Option D
Explanation:
Let C's age be x years. Then, B's age = 2x years. A's age = (2x + 2) years.
(2x + 2) + 2x + x = 27
5x = 25
x = 5.
Hence, B's age = 2x = 10 years.
8. A man has Rs. 480 in the denominations of one-rupee notes, five-rupee notes and ten-rupee notes. The
number of notes of each denomination is equal. What is the total number of notes that he has ?
A.45 B. 60
C.75 D.90
Answer: Option D
Explanation:
Let number of notes of each denomination be x.

Then x + 5x + 10x = 480
16x = 480
x = 30.
Hence, total number of notes = 3x = 90.
9. A grocer has a sale of Rs. 6435, Rs. 6927, Rs. 6855, Rs. 7230 and Rs. 6562 for 5 consecutive months.
How much sale must he have in the sixth month so that he gets an average sale of Rs. 6500?
A.Rs. 4991 B. Rs. 5991

C.Rs. 6001 D.Rs. 6991
Answer: Option A
Explanation:
Total sale for 5 months = Rs. (6435 + 6927 + 6855 + 7230 + 6562) = Rs. 34009.
Required sale = Rs. [ (6500 x 6) - 34009 ]
= Rs. (39000 - 34009)
= Rs. 4991.
10. Two numbers are respectively 20% and 50% more than a third number. The ratio of the two numbers
is:
A.2 : 5 B. 3 : 5
C.4 : 5 D.6 : 7
Answer: Option C
Explanation:
Let the third number be x.

120x 6x
Then, first number = 120% of x = =
100 5
150x 3x
Second number = 150% of x = =
100 2
6x 3x
Ratio of first two numbers = : = 12x : 15x = 4 : 5.
5 2
11. What least number must be added to 1056, so that the sum is completely divisible by 23 ?
A. 2 B. 3
C. 18 D. 21
E. None of these
Answer: Option A
Explanation:
23) 1056 (45

92
---
136
115
---
21
---
Required number = (23 - 21)

= 2.
12. In the first 10 overs of a cricket game, the run rate was only 3.2. What should be the run rate in the
remaining 40 overs to reach the target of 282 runs?
A.6.25 B. 6.5
C.6.75 D.7
Answer: Option A
Explanation:
282 - (3.2 x 10) 250

Required run rate = = = 6.25
40 40
13. The average age of 30 boys of a class is equal to 14 years. When the age of the class teacher is included
the average becomes 15 years. Find the age of the class teacher.
A. 40 yrs B. 45 Yrs C. 50 Yrs D. 55 yrs
Explanation:
Total ages of 30 boys = 14x30 = 420 yrs

Total ages when class teacher is included : 15X31 = 465 yrs
Age of the Class teacher = 465-420= 45 Yrs
Option B
Direct Formula :
Age of New entrant = New Average + No. of old memebersX Increase in average
i.e. 15+ 30 (15-14) = 45 years. Option B
14. A boy buys oranges at 9 for Rs.16 and sells them at 11 for Rs.20. What his gain or loss percent?
Explanation:
The above problem can be written in the format as given below:-
Purchase 9 16
Sales 11 20
% of profit or loss = 9x20 - 16x11

-----------------x 100
16x11
= 25/11 %
Since the sign is + , there is a gain of 25/11 %.
15. 16 men can do a piece of work in 10 days. How many men are needed to complete the work in 40 days?
Explanation:
M1D1W2= M2D2W1
i.e. 16x10= M2 X 40
M2 = 4 Men. Answer: 4 men are required.
-------------------------------------------------------------------------------------------------------
16. A is 3 years older to B and 3 years younger to C, while B and D are twins. How many years older is C to D?
a)2
b)3
c)6
d)12
e)24
Answer: Option C
Explanation:
Since B and D are twins, so B = D.

Now, A = B + 3 and A = C - 3.
Thus, B + 3 = C - 3 D + 3 = C-3 C - D = 6.
17. In a group of cows and hens, the number of legs are 14 more than twice the number of heads. The
number of cows is
A. 5
B. 7
C. 10
D.12
Answer: Option B
Explanation:
Let the number of cows be x and the number of hens be y.
Then, 4x + 2y = 2 (x + y) + 14 4x + 2y = 2x + 2y + 14 2x = 14 x = 7.

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A Reference Study Material

(For internal circulation only)

Baroda Academy 1 Inventing methods for inventing minds

Sr. No. Topics Page No.

01. Banking Law & Practice 3-152

02. Banking Technology 153-199

03. General Knowledge 200-222

04. Rural Banking 223-263

05. English 264-288

06. Reasoning and Problem Solving 289-315

Baroda Academy 2 Inventing methods for inventing minds

Baroda Academy 3 Inventing methods for inventing minds

To be a holder-in-due-course, banker must be a payee or an endorsee if it is an 'order' cheque or be a

Sec.10- Payment in due course:

Bill date Tenor Date of acceptance Due date

Baroda Academy 6 Inventing methods for inventing minds

Sec. 27 - Authority of an Agent to bind his principal in respect of a negotiable instrument :

Sec. 28 - Liability of an agent signing on behalf of his principal:

Sec. 31 - Liability of the drawee of a cheque:

Sec.56 - Endorsements for part of sum due.

Sec.57 - Negotiation by legal representative:

Sec.58 - Instrument obtained by unlawful means or for unlawful considerations:

Sec.59 - Instrument acquired after dishonour or when overdue:

Sec.60 - Instrument negotiable till payment or satisfaction:

Sec.80 - Interest payable on negotiable instrument:

Sec. 85 - Protection to paying banker:

Sec.87 - Effect of material alteration:

Baroda Academy 9 Inventing methods for inventing minds

Sec.104 - Noting and protest of foreign bills:

Sec.131 - Protection to collecting banker:

(II) Note: Following points to be noted in respect of this section

Baroda Academy 11 Inventing methods for inventing minds

Negotiable Instruments Act 1881, (Section 138 change): -

Negotiable Instrument Act 1881: At a glance

Baroda Academy 13 Inventing methods for inventing minds

Baroda Academy 14 Inventing methods for inventing minds

Baroda Academy 15 Inventing methods for inventing minds

Baroda Academy 16 Inventing methods for inventing minds

Indian Contract Act, 1872:

Section124. "Contract of indemnity" defined-

Sec. 126 "Contract of guarantee", "surety", "principal debtor" and "creditor" -

Section 148. ‘Bailment’, ‘bailor’ and ‘bailee’ defined. -

Section 172. "Pledge", "Pawnor", and "Pawnee" defined -

Section 182. "Agent" and "principal" defined -

Indian Partnership Act, 1932:

Reserve Bank of India Act, 1934:

 To regulate the issue of Bank Notes.

The Act deals with the following:

 Incorporation, capital, management and business of the bank.

“Bank Rate Policy”:

Cash Reserve Ratio:

Baroda Academy 18 Inventing methods for inventing minds

Audit of Annual Accounts of Banks:

BANKING REGULATION ACT, 1949:

Powers Of Reserve Bank of India to control advances by banking company:

- the purpose for which advances may or may not be made.

Baroda Academy 19 Inventing methods for inventing minds

Provision applicable to co-operative societies:

Baroda Academy 20 Inventing methods for inventing minds

BANKER'S BOOKS EVIDENCE ACT, 1891:

Sec. 2(4) defines legal proceedings:

Admissibility of bankers' books in evidence:

Specific order of the court for producing bankers' books: