Professional Documents
Culture Documents
Vijeta October 2022 - MDI
Vijeta October 2022 - MDI
Education can turn the mirrors to windows and expands the ways
to success.
Rajeev Sinha
Deputy General Manager & Principal MDI
Index
KYC Policy:
Banks are required to frame their KYC policies incorporating the following four
key elements:
i. Walk-in Customers
• Transaction/s for amount equal to or exceeds Rupees
fifty thousand, by a walk in customer (non-account holder) whether
constructed as a single transaction or several transactions, the customer's
identity and address should be verified.
• Banks/FIs are required to verify the identity of the customers for all
international money transfer operations and also consider filing a suspicious
transaction report (STR) to FIU-IND(Rule 9 of the PML Rules 2005)
ii. Salaried Persons
• For salaried employees, banks can rely on certificate/letter of identity
/address issued only from corporate and other entities of repute and should
be aware of the competent authority designated by the concerned employer to
issue such certificate/letter and additionally insist for at least one of
officially valid documents as provided in the Prevention of Money Laundering
Rules (viz. Passport, driving licence, PAN Card, Voter’s Identity card,
etc.) Or utility bills for KYC purposes for opening bank accounts.
b) All NGO accounts opened (except those promoted by the United Nations or its
agencies) should be classified as High Risk category accounts AB INITIO
and transactions in these accounts should be properly scrutinized with
enhanced due diligence on continuous basis.
c) All foreign inward remittances to the credit of these accounts should be scrutinized
taking into account the customer profile, country of origin of funds, etc. and
extant guidelines regarding such remittances.
Account of Foreign students in India
•Branch may open Non Resident Ordinary (NRO) bank account of a foreign
student on the basis of his/her passport (with appropriate visa & immigration
endorsement) along with a photograph and a letter offering admission from
educational institution.
• Within a period of 30 days of opening of account, the foreign
student should submit, a valid address proof giving local address, a letter
from educational Institution as proof of living in a facility provided by the educational
Institution.
• During the 30 days, the account should be operated with a condition
of allowing foreign remittance not exceeding USD 1000 in the account and cap of
monthly withdrawal of Rs.50000/- pending verification of address.
Small Account
ii. The aggregate of all withdrawals and transfers in a month does not exceed
rupees ten thousand.
iii. The balance at any point of time does not exceed rupees fifty thousand.
Provided, that this limit on balance shall not be considered while making deposits
through Government grants, welfare benefits and payment against procurements.
Banks are advised to ensure adherence to the procedure provided in the Rules for
opening of small accounts. In terms of the Notification, job card issued by NREGA
duly signed by an officer of the State Government or the letters issued by the
Unique Identification Authority of India containing details of name, address
and Aadhaar number, etc. can be accepted as documentary evidence of identification
a proof of address.
Risk Management
• Banks shall also file a Suspicious Transaction Report (STR) with FIU- IND
covering all transactions in the accounts covered by paragraph (b) above, carried
through or attempted, as per the prescribed format.
• On receipt of the particulars from Bank/FI, the MHA would get the veracity
of the data verified by State Police and /or the Central Agencies. The verification
would be completed within a period not exceeding 5 working days from the date of
receipt of such particulars.
Customer Education
Banks are required to introduce suitable means to educate the
customers of the objectives of the KYC programme so as to avoid any
resistance from the customers.
Training of Employees
“Money Mules” which are used to launder the proceeds of fraud schemes (e.g.,
phishing and identity theft) by criminals who gain illegal access to deposit
accounts by recruiting third parties which act as “money mules.
Identify and exit such accounts if it is already exiting. For new a/cs, during discussion
/ interaction if any indication noticed, customer must be avoided.
DO`s :
A. Normal Accounts: applicable OVDs as “PROOF OF IDENTITY AND ADDRESS” -
Any one of the 6 documents, listed below can be accepted:
1. Passport (Within validity);
2. Driving License (Within validity);
3. Voters Identity Card;
4. MNREGA Job Card
5. Aadhar Card (Voluntary)
6. Letter issued by the National Population Register containing details of name and
address
Note:
i. PAN or Form 60 shall be obtained from each customer
ii. Recent photograph shall be obtained while opening new account as well as
undertaking Re-KYC exercise.
iii. Re-KYC exercise shall be undertaken as per Risk Category,
a) while issuing ATM / cheque book, if not issued at the time of opening
of account
b) if any customer submits new OVD replacing the existing one,
c) requests for change in mobile number after a reasonable gap.
Address: In case the identity information relating to OVD submitted by the customer
does not have current address, an OVD defined as under, shall be obtained from the
customer which shall be called as deemed OVD and shall be valid for limited purpose
for 3 months,
1. Utility bill which is not more than two months old of any service provider
(electricity, telephone, post-paid mobile phone, piped gas, water bill);
2. Property or Municipal tax receipt;
3. Pension or family pension payment orders (PPOs) issued to retired employees by
Government Departments or Public Sector Undertakings, if they contain the address;
4. Letter of allotment of accommodation from employer issued by State Government
or Central Government Departments, statutory or regulatory bodies, public sector
undertakings, scheduled commercial banks, financial institutions and listed companies
and leave and licence agreements with such employers allotting official
accommodation.
Applicable ONLY for Customers who are assessed under Low risk category.
Documents out of the following list in which Identity and / or Address proof is
given, can, be accepted towards “Proof of Identity and Address”.
a. Balance in the account at any point of time should not exceed Rs.50,000/-,
b. Total of all debits and transfers in a month should not exceed Rs.10, 000/-
c. Total credit in account should not exceed Rs.1 lac in one financial year
d. The account to remain operational initially for 12 months; the period can
be extended further for 12 months provided the customer applies and
furnishes evidence of having applied for any of the OVDs during first 12
months of opening the account.
f. The following facilities, namely: cheque book, Debit/ATM cards, ABB facility
and Internet Banking facility etc. that are normally available to KYC compliant
accounts, shall not be available under BSBD Small account scheme.
8. Always generate the report of RE-KYC (KYCRPT) periodically and take action
on that i.e. update the KYC as per the stipulated periodic intervals viz.
every 2 years for High risk accounts, every 8 years for Medium risk accounts
and every 10 years for Low risk accounts.
9. After obtaining the updated KYC documents, enter them in menu KYCDET in
the Finacle system.
10. Monitor the transactions of the customer and escalate if any suspicious
transactions found.
11. Familiarise yourself thoroughly with the KYC/AML/CFT policy and
amendments notified subsequently, if any.
12. Name Screening: As and when the updated U.N.lists are received
from RBI, they are uploaded in KRISH menu in our CBS system from where the
branches check / take a search in the list before opening the account.
Sr Particulars
1. Proof of identity and address
Originals of any of the SIX Officially Valid Documents (OVD) along with RECENT
PHOTOGRAPH for each individual related to Bank account. A copy of the same to
be submitted for Branch records
1. Passport (Within validity); 2. Driving License (Within validity);
3. Voters Identity Card; 4. Letter issued by the National Population Register
containing details of name and address; 5. Aadhar Card; and 6. MNREGA Card
NOTE: PAN or Form 60 shall be obtained from each customer;
If identity & address both are available in one document, that single
document fulfils KYC norms; If applicant resides outside the city, obtain OVD as
above along with self-declaration about local address.
Additional information with supporting documents for NRI /PIO and
foreign nationals.
b) Trust deed.
Specific guidelines of FATF for banking and financial sector, for doing the process of
risk assessment stages: Stage 1- Collection of information, Stage- 2 Threat
identification, Stage-3 Assessment of ML/TF vulnerabilities, Stage- 4 Analysis of
ML/TF threats and vulnerabilities, Stage-5 Risk Mitigation which comprises a) Focus
on CDD procedure, b) Enhanced Due Diligence EDD, c) Simplified Due
Diligence(SOD), d) Ongoing CDD and Monitoring, e) Reporting, f) Internal Controls
and g) Recruitment and Training, Stage-6 Follow-up and maintaining up-to-date risk
assessment. Already discussed above, for further details go through Branch circular
115/214, Ref:COMPL/AM/2021/892-967dated 02-11-2021.
Asset Products
(e.g. invoices, bills of lading and manifests), automated transaction monitoring may
not be feasible. The processing branch should assess these documents for
consistency with the terms of the trade transactions and require staff concerned to
use professional expertise and judgement to consider whether any unusual features
warrant the application of EDD measures or give rise to suspicion of ML/TF. Over
invoicing I under invoicing I multiple invoicing I over or under quantity I payment by
I to third parties (other than exporter I importer) I countries not related to
manufacturing I processing of goods under reference I services provided in the name
of Computers I Software I IT products are to be looked in-to carefully as these are the
red flags for Money Laundering I Terrorist Financing
Management of information
A) Proper Record-keeping - Branch should ensure information obtained in the context
of Customer Due Diligence and recording the documents of the customer or the
Beneficial Owner, and transcription into the bank's own IT systems of the relevant
COD information.
The negotiable Instrument Act 1881 has been amended under sec
142 of the Act w.e.f. 15-06-2015.
The bill amends the Act to state that cases of bouncing of cheques u/s 138 can
be filed only in a court in whose jurisdiction the bank branch of the payee (Person
who received the cheque) lies. The Bill also amends of “Cheque in the
electronic form”. Under the Act it was defined as a cheque containing the exact
mirror image of a paper cheque and generated in a secure system using a digital
signature. The definition has been amended to mean a cheque drawn in
electronic medium using any computer resource and which is signed in a secure
system with a digital signature, or electronic system.
The Negotiable Instruments (Amendment) Act, 2018 ("Amendment Act")
was notified on August 02, 2018. The Key features of the amendments are –
• Section 143A has been inserted which essentially empowers the court
trying the offence under Section 138 of the Act, to direct the drawer of the
cheque to pay interim compensation to the Payee in situations of a
summary trial or summons case wherein the drawer pleads to be "not
guilty". This new provision seeks to cap interim compensation to 20%
of the cheque amount.
• Another provision introduced as Section 148 specifies that in case the
drawer files an appeal against his/her conviction, the Appellate court has
the power to direct the drawer to deposit a minimum amount of
20% of the fine or compensation that was awarded by the Trial court. The
Appellate Court may direct to release the amount deposited by the
appellant to the complainant at any time during the pendency of the
appeal.
Banker Customers Relationship - In Different Transactions
• In deposit accounts - Debtor and Creditor
• In loan accounts - Creditor and Debtor
• Safe custody – Bailee/Trustee and Bailor
• In Safe Deposit Vault – Lessor & Lessee or Licensor and Licensee
• Sale of third party products – Agent
• Collection of cheque for customer - Agent & Principal
4. Application for class action suit has to be filed before the National
Company Law Board Tribunal
(NCLT/Tribunal).
• Doctrine of I ndoor Ma n a ge me n t : As the Ltd Company has
distinct legal entity from its members and management, third parties
entering into any dealings with the company act through directors or
officers of the company. This principle implies that such third parties
needed to be protected against any internal procedural lapse or violation
due to which company cannot revoke such deals to their detriment. Such
third parties are entitled to presume that the persons acting on behalf of
the company are acting within the rules of the company and their powers
unless they have reason to believe that this is not so or this fact is
known to them at time of entering into the deal.
• Lifting the Corporate Veil: This legal principle involves that directors
or officers of the company cannot act fraudulently against third party and
company cannot set up the defence under the cloak of corporate entity
to avoid liability to third parties. Where the persons in power to take
decisions in the company commit fraud on outsiders, the court in
keeping with the equity and principles of natural justice will lift the
corporate veil and see inside as to who are wielding the power in the
company to make them accountable.
• Doctrine of Ultra Vires: The concept of ultra vires is to prevent
the company from acting in a controversial manner flouting all internal
rules. Acts which are ultra vires the articles of association or the board
of directors can be ratified by the company in general meeting. However
acts which are ultra vires the Memorandum of association or company
or the company law cannot be ratified and will be void. However third
parties who enter into such transactions without knowledge will get
protection provided they prove that they did not know that the
transaction was one which the company does not have authority to enter
into. However company will not be liable but the directors will be
personally liable.
• The transferee may have the option to acquire the interest which
the transferor subsequently acquires.
Rights of Mortgagor –
PML Act, 2002 & KYC Guidelines 2005 - Present guidelines of RBI to Banks
• Money laundering is the process where proceeds of a crime or
unlawful activity are filtered in such a way that the source of their
origin is disguised. Section 3 of Prevention of Money Laundering
Act,2002 (hereinafter referred to as PMLA) defines “money laundering”
as Whosoever attempts to indulge in any process or activity connected
proceeds of crime including its concealment, possession, acquisition or
use and projecting or claiming it as untainted property shall be guilty of
offence of money-laundering. As per PML amendment dated October 31,
2018, Banks must upload customer data for all new individual accounts
on the CKYCR within ten days from the date of account opening.
• Thus, the proceeds from criminal activities further propel crimes
and create a parallel economy and all of these transactions operate
being unnoticed.
• The PMLA also enumerates a list of offences which are classified as
‘Scheduled offences’ constitute as
‘crimes’.
• Single Document for Proof of Identity and Address- Earlier, as
part of the KYC process, one had to submit separate proofs for
address and identity. The RBI has done away with this. Now, a single
document with photograph and address of the applicant will suffice.
• Loans and other credit facilities which include fund based such as
cash credit, overdraft, cheque and bill purchase/discounting (both inland
and foreign), negotiation under reserve of documents tendered under
Letter of Credit (both inland and foreign) and non-fund based such as
establishment of inland and /or foreign Letter of Credit (D/P or D/A),
issuing of Guarantee (both inland and foreign), Inland or foreign bill
or cheque for collection, Co- acceptance and avalisation of bills, buyer’s
credit, etc.
• Merchant Services.
The new Act proposes a slew of measures and tightens the existing rules to
further safeguard consumer rights.
• The Banking Ombudsman may also deal with such other matter as
may be specified by the Reserve Bank from time to time.
• One can file a complaint before the Banking Ombudsman if the
reply is not received from the bank within a period of one month after the
bank concerned has received one’s representation, or the bank rejects
the complaint, or if the complainant is not satisfied with the reply given
by the bank.
Your complaint pertains to any policy you have taken in your capacity
as an individual and
The value of the claim including expenses claimed is not above Rs 30 lakhs.
Reserve Bank of India (RBI) had, in May 2015, advised all public-sector and
select private and foreign banks to appoint Internal Ombudsman (IO) as an
independent authority to review complaints that were partially or wholly
rejected by the respective banks so as to minimize the need for the
customers to approach other fora for redressal. The IO shall, inter alia,
examine customer complaints which are in the nature of deficiency in
service on the part of the bank, (including those on the grounds of
complaints listed in Clause 8 of the Banking Ombudsman Scheme,
2006) that are partly or wholly rejected by the bank.
Grounds of complaints?
a. If not covered under the Scheme & not pertaining to the grounds of
complaint specified under Clause 8 of the Scheme.
b. If one has not approached the System Participant concerned in the first
instance for redressal of the grievance.
c. If one has not made the complaint within one year from the date of
receipt of reply from the System Participant; or if no reply is received, and
the complaint to the Ombudsman is made after the lapse of more than one
year and one month from the date of complaint to the System Participant.
In exceptional circumstances as decided by the Ombudsman, a complaint
made after the period mentioned above may be accepted by the
Ombudsman, provided the complaint is made before the expiry of the
period of limitation prescribed under the Indian Limitation Act, 1963 for such
claims.
e. If the subject matter of the complaint is pending for disposal / has already
been dealt with at any other forum like court of law, consumer court etc.
f. If the complaint is for the same subject matter that was settled through
the office of the Ombudsman in any previous proceedings.
g. If the complaint is frivolous or vexatious.
h. The complaint falls under the disputes covered under Section 24 of the
Payment and Settlement Systems Act, 2007.
i. The complaint pertains to dispute arising from a transaction between
customers.
• Suggested references
• Indian Contract Act 1872
• Transfer of property Act 1882
• Negotiable Instrument Act 1881
• Companies Act 2013
• SARFAESI Act 2002
LAW OF LIMITATION
To keep the documents alive and enforceable in law, banks have to obtain
renewal document, i.e. letter of acknowledgement of debt and security for
extending the period of limitation of documents. Limitation period of various
documents are as follows-
• D P Note – 3 years from date of execution
• All agreements 3 years from date of execution
• Agreement of guarantee – 3 years from date of invocation by
beneficiary or 3 years from repudiation by guarantor
• Term loan agreement – Each instalment will be treated as separate
dues and 3 years from due date of each instalments
• Mortgage Deed - 12 years from date of mortgage
• Decree – 12 years from date of decree
• Appeal to High Court against Lower Court- 90 days from the date of
decree
• Appeal to other Courts on the decree of lower court- 30 days from
date of decree.
• Suit by State/Central Govt.- 30 years from the period when
limitation begins.
Capital
1. Capital Funds-Equity contribution o f o w n e r s . The b a s i c a
p p r o a c h o f capital adequacy framework is that a bank should have
sufficient capital to provide a stable resource to absorb any losses
arising from the risks in its business. Capital is divided into different
tiers according to the characteristics / qualities of each qualifying
instrument.For supervisory purposes capital is split into two categories:
Tier I and Tier II.
2. Common Equity Tier I (CET 1) Capital-A term used to refer to one
of the components of regulatory capital. It consists mainly of share
capital and disclosed reserves (minus goodwill, if any). Tier items are
deemed to be of the highest quality because they are fully available to
cover losses Hence it is also termed as core capital.
3. Additional Tier I Capital- In addition to commonequityTier I Capital
(CET I) Basel III has proposed Additional Tier I Capital (ATI) to the
extent of1.5% of the RWA (Risk Weightedassets).
This consists of Perpetual Non-Cumulative Preference Shares (PNCPS)
and such other eligible instruments as declared by RBI.
4. Tier II Capital-Refers to one of the components of regulatory
capital. Also known as supplementary capital, it consists of certain
reserves and certain t y p e s o f s u b o r d i n a t e d d e b t . Tier I I i t e m s
q u a l i f y a s r e g u l a t o r y capital to the extent that they can be used to
absorb losses arising from a Bank’s activities. Tier II's capital loss
absorption capacity is lower than that of Tier I capital.
1. Standardized approach (SA) - Under the SA, the banks use a risk-
weighting schedule for measuring the credit risk of its assets
by assigning risk weights based on the rating assigned by the
external credit rating agencies.
2. Internal rating based approach (IRB) - The IRB approach, on
the other hand, allows banks to use their own
internal ratings systems of counterparties and
exposures, which permit a finer differentiation of risk for various
exposures and hence delivers capital requirements that
are better aligned to the degree of risks.
Liquidity Risk: BCBS had observed that one of the factors for the
recent financial crisis were due to inaccurate and ineffective
management of Liquidity Risk. To overcome this , BCBS had come out
with two ratios – Liquidity Coverage Ratio and Net Stable Funding Ratio
(NSFR).
❖ The Net Stable Funding Ratio: This ratio aims at promoting medium to
long term structure funding of assets and activities of the Banks.
BCBS aims to trial this ratio from 2012 and makes it mandatory in
January 2018. In view of the ongoing stress on account of COVID-19, it
has been decided to defer the implementation of NSFR guidelines by a
further period of six months. Accordingly, the NSFR Guidelines shall
come into effect from October 1, 2021.
Those with CRAR of more than 6.25 per cent but less than 7.75 per cent fall in
the second threshold. In case a bank’s common equity Tier 1 (the bare
minimum capital under CRAR) falls below 3.625 per cent, it gets categorised under
the third threshold level.Banks that have a net NPA of 6 per cent or more but less
than 9 per cent fall under threshold 1, and those with 12 per cent or more fall under
the third threshold level.
On profitability, banks with negative return on assets for two, three and four
consecutive years fall under threshold 1, threshold 2 and threshold 3, respectively.
For the housing loans sanctioned prior to October 16. 2020, the extant
guidelines, based on both size of the loan as well as the LTV ratio,
will continue to be applicable as hitherto -RBI, in its second bi-monthly
monetary policy statement 2017-18, revised the LTV ratio, Risk
Weight and Standard Asset Provisioning rates, as under, for loans
sanctioned on or after June 7, 2017:
Bank’s re-capitalisation:
Bank recapitalisation, as the name suggests, means recapitalising banks with new
capital to improve their balance sheet. The government, using different instruments,
infuses capital into banks undergoing credit crunch. Capital is the money invested by
shareholders in the business. Since the government is the biggest shareholder in
public sector banks, the responsibility of infusing capital majorly lies with the
government. The recapitalisation plan comes into action when banks get caught
in a situation where their liabilities are comparatively higher than their assets. The
liquidity with banks is a liability as it is the money deposited by customers, which needs
to be paid sooner or later. Due to this their balance-sheet weakens and banks find
it difficult to raise capital from the open market. The government, which is also the
biggest shareholder, can infuse capital in banks by either buying new shares or by
issuing bond.
In India, MSMEs contribute nearly 8% of the country's GDP, around 45% of the
manufacturing output, and approximately 40% of the country's exports. The
contribution of the sector in the economy is currently constrained due to several
challenges affecting growth of the sector. Some of the major ones are mentioned
below:
a) Policy and institutional interventions
b) Accelerating growth and enabling formalization
c) Addressing infrastructural bottlenecks
d) Facilitating capacity building
e) Facilitating access to credit and risk capital
f) Technological interventions for improving underwriting standards and delivery
g) Enabling market linkage and tie up with public procurement platforms.
Government of India enacted MSMED act 2006 with an aim to enable MSME
Entrepreneurs for increasing their worth and efficiency so that they may sustain
the Competition, enlarge their scope of activity and enlist them among the top
performers. Further to broaden the scope of MSMEs, Government of India
modified/amended the MSME act, based on the recommendations of the
advisory committee in July 2020 changed the classifications of MSMEs.
ii) In case of a new enterprise, where no prior ITR is available, the investment will
be based on self-declaration of the promoter of the enterprise and such relaxation
shall end after 31St March of the financial year in which it files its first ITR.
iii) The expression "Plant & Machineries" or " Equipment" of the enterprise shall have
the same meaning as assigned to the Plant & Machinery in the income tax rules,
1962 framed under the income tax act 1961, and shall include all tangible assets
(other than land and building, furniture & fittings).
iv) The purchase (Invoice) value of plant & machinery or equipment, whether
purchased first hand or second hand shall be taken into account excluding Goods &
Services (GST), on self-disclosure basis, if the enterprise is a new one without ITR.
Exclusions from list of plant & machineries / equipment:-
However, cost of the following plant & machinery / equipment etc. would
be excluded for computation of investment value.
I. Equipment such as tools, jigs, dies, moulds, and spare parts for
maintenance and the cost of consumable stores.
ii. installation cost of plant &machinery.
iii.Research & development and pollution control equipment.
iv. Power generation set and extra transformer installed by the enterprise as
per the Regulations of the State Electricity Board.
v .Bank charges and Service Charges paid to the National Small Industries
Corporation or the State Small Industries Corporation.
vi. Procurement or Installation of cables, wiring bars, electrical control panels
(not mounted on individual machines)
xiii. Such other items as may be specified, by notification from time to time.
In case of Service Enterprises, the original cost to exclude furniture, fittings and other
items not directly related to the services rendered. Cost of Land and Building should
be excluded while computing the investments in P& M I Equipment for both
Manufacturing
& Service Industries.
Calculation of Turnover:
ii) Information as regards to turnover and exports turnover for an enterprise shall
be linked to the Income Tax act or the central goods and services act (CGST
act) and the GSTIN.
iii) The turnover related figures of such enterprise which do not have PAN will be
considered on self — declaration basis for a period up to 31st March 2021 and
thereafter PAN and GSTIN shall be mandatory.
ii) Loans to entities involved in assisting the decentralized sector in the supply of
inputs to and marketing of produce of artisans, village and cottage industries.
iii) Loans to cooperatives of producers in the decentralized sector viz. artisans village
iv) Loans sanctioned to NBFC — MFIs and other MFIs (Societies, trusts etc) which
are members of RBI recognized SRO for the sector for on lending to MSME sector.
v) Loans to registered NBFCs (other than MFIs) for on lending to Micro &
Small enterprises.
vi) Overdraft to Pradhan Mantri Jan Dhan Yojana (PMJDY) account holders as per
limits and conditions prescribed by Department of Financial Services (DFS), Ministry
of Finance from time to time will qualify as achievement of the target for lending to
Micro Enterprises.
vii) Outstanding deposit with SIDBI and MUDRA Ltd on account of priority
sector shortfall.
viii) Loans extended under co-lending arrangement will be classified as PSL in
respect of Banks share of loan.
Micro Enterprises:
A target of 7.5 percent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent
Amount of Off-Balance Sheet Exposure, whichever is higher has been prescribed
for Micro Enterprises.
Advances to Micro, Small & Medium Enterprises (MSME) sector shall be reckoned
in computing achievement under the overall Priority Sector target of 40 percent of
ANBC or credit equivalent amount of off-Balance Sheet Exposure, whichever is
higher as per extant guidelines on priority sector lending.
In terms of the recommendations of the Prime Minister's Task Force on MSMEs,
banks have to achieve a 20 per cent year-on- year growth in credit to micro and
small enterprises and a 10 per cent Y-O-Y growth in the number of Micro enterprise
accounts.
60 per cent of total lending to MSE -sector as on _corresponding quarter of the
previous year to Micro enterprises.
The target for lending to Micro Enterprises within the MSE sector (i.e. 60% of total
lending to MSE sector should go to Micro enterprises) will be computed with
reference to the outstanding credit to MSE sector as on preceding March 31St.
In case of rejection of loan request, approval shall be obtained from the next
higher authority, not below the rank of Zonal Manager.
Composite Loan:
A Composite loan limit can be sanctioned by branches to enable the MSE
entrepreneurs to avail of their working capital and term loan requirement through
single window.
Udyami Registration:
i) All enterprises who wishes themselves to be classified as MSME are required to file
Udyam Registration on Udyam Registration portal.
ii) Aadhaar Number is mandatory for filing Udyam Registration. Adhaar number
shall be of the proprietor in the case of proprietorship firm, managing partner
in case of partnership firm and of karta in the case of Hindu Undivided family
(HUF).
iii) In case of company or a limited liability company partnership or a cooperative
society or a society or trust, the organization or its authorized signatory shall provide
its GSTIN and PAN.
iv) All existing enterprise are required to register again on the Udyam
Registration portal, even though they previously were in possession Udyog
Adhaar Number.
v) It will be mandatory for the branches to obtain Udyam Registration Certificate
from the borrowers, while considering any new loan, wef 01.09.2020. (In case
URC is not available, they should be prompted to obtain the same before
disbursement through the portal)
vi) In case of existing borrower the Udyam Registration Certificate is to be
obtained from all borrower within 31/03/2021 and should be kept on record.
vii) Accounts will be classified as Micro, Small & Medium on the basis of Udyam
Registration Certificate.
vii) An enterprise registered with any other organization under the ministry of
Micro, Small and Medium enterprises shall register itself under Udyam
Registration.
Financial Support to MSMEs in ZED certification scheme:
The ZED Certification scheme of Ministry of MSME is aimed at enhancing the global
Competitiveness of Indian MSMEs on quality and environment aspects in their
systems and processes. It is a continual improvement & rating scheme involving
Handholding and Certification of MSMEs with financial support from Government
of India. Ministry of MSME has nominated QCI (Quality Council of India) as the
National Monitoring and Implementing Unit (NMIU) of this scheme.
In our application forms and proposal format ZED certification are duly captured
and all the branches have been advised to encourage borrowers for obtaining
ZED certification.
For full information on ZED certification, branches may visit https://www.zed.onin/ .
Under Delayed Payment Act, April 1993 (Amended in 1998), interest on delayed
payment by Corporate to Small Scale units and Ancillary Industrial Undertakings,
penal provisions have been incorporated to take care of delayed payments to
MSME units. After the enactment of the Micro, Small and Medium Enterprises
Development (MSMED) Act 2006, the existing provisions of the Interest on
Delayed Payment Act, 1998 to Small Scale units and Ancillary Industrial
Undertakings, have been strengthened as under:
(i) Whenever any supplier, supplies any goods or renders service to any buyer,
the buyer shall make payments in the following manner:
(ii) Where any buyer fails to make payment of the amount to the
supplier, as mentioned under (i) above, the buyer is liable to pay
compound interest with monthly rests to the supplier on that amount
from the appointed day at three times of the Bank Rate notified by
Reserve Bank of India.
(iii) For any goods supplied or services rendered by the supplier, the buyer
shall be liable to pay the interest as advised at (ii) above.
(iv) In case of any dispute with regard to any amount due, any party to a dispute
may make a reference to the Micro and Small Enterprises Facilitation Council,
constituted by the respective State Government.
Further, banks have been advised by Reserve Bank of India to fix sub-limits
within the overall working capital limits to the large borrowers specifically for
meeting the payment obligation in respect of purchases from MSMEs.
Branches should take note of the above provisions of the MSMED Act, 2006 while
verifying the receivables shown by the SME Borrower in their Book Debts Statement
as well as annual balance sheet by cross-checking if these receivables appear in the
respective buyers' audited balance sheet(s). For the same reason, if any Corporate
or other buyers (of any SME suppliers' products) happen to be our Bank's borrowers,
branches should verify whether the dues to the supplier (SMEs) are reflected in their
audited balance sheet(s).
Cash Budget method — where working capital requirement is more than Rs.5 crore
assessments should be carried out under cash budget method especially where the
borrower is engaged as contractor or revenue is recognized on progressive billing
basis, etc. Under this method, the peak level cash deficit will be the level of total
working capital finance to be extended to the borrower.
EXTENT OF FINANCE-
SHISHU -- up to Rs. 50,000/-
PRIMARY SECURITY-
Objectives:
(i)To generate employment opportunities in rural as well as urban areas of the
country through setting up of new self-employment ventures/project To provide
continuous and sustainable employment.
(ii)To increase the wage-earning capacity of workers and artisans and contribute to
increase in the growth rate of rural and urban employment.
(iii) If the total project cost submitted by the borrower for First/Second financial
assistance under the scheme exceeds the respective limits admissible for subsidy,
the balance amount may be considered for financing without any Government
subsidy.
(iv) EDP Training: At least 10 Days (for offline mode)/ 60 hours (for online mode)
under Entrepreneurship Development Programme (EDP) / Skill Development
Programme SDP) / Entrepreneurship cum Skill Development Programme (ESDP) or
Vocational Training (VT) to be completed by the applicant under the scheme.
(v) All the areas, irrespective of their population, falling under Panchayati Raj
Institutions will be accounted under rural areas, whereas areas falling under
Municipality to be treated as urban areas.
The balance amount of the total project cost will be provided by the banks in the form
of term loan and working capital.
2) The maximum cost of the project/unit admissible for Margin Money subsidy
under Business/Service sector is Rs.20 Iakhs.
3) The balance amount (excluding the own contribution) of the total project cost
will be provided by Banks.
4) If the total project cost exceeds Rs.50 lakhs or Rs.20 lakhs for Manufacturing
and Service/Business sector respectively, the balance amount may be
provided by Banks without any Government subsidy.
Second financial assistance to existing PMEGP / Mudra borrowers
1) The maximum cost of the project/unit admissible for Margin Money subsidy
under Manufacturing sector for upgradation is Rs.1.00 Crore. Maximum
subsidy would be Rs.15 lakh (Rs.20 lakh for NER and Hill States).
2) The maximum cost of the project/unit admissible for Margin Money subsidy
under Business/Service sector for upgradation is Rs.25 lakh. Maximum
subsidy would be Rs.3.75 lakh (Rs.5 lakh for NER and Hill States).
3) If the total project cost exceeds, the balance amount maybe provided by banks
without any Government subsidy.
Mudra Card
✓ To facilitate WC transactions
✓ RUPAY debit card, Per day Limit Rs.25000/-
✓ Insurance coverage – Rs. 1 Lakh
✓ No charge for issuance
✓ Limit can be fixed 20% to 100%
Star Laghu Udyami Samekit Loan: The then existing Samekit Loan scheme was
modified and now a composite loan in the form of demand loan and/or term loan is
provided to all Micro & Small Entrepreneurs at a margin of 15% with prescribed
ceilings for the quantum of Bank finance varying as per location of the unit. As per
scheme before modification, Metro area entrepreneurs were excluded from the
scheme and repayment period allowed was maximum 36 months. Now, it could be
up to 60 months.
The maximum quantum of loan:
For units located in Maximum quantum
Rural Areas Rs. 5,00,000/-
Semi-urban Areas Rs 10,00,000/-
Urban Areas Rs. 50,00,000/-
Metro Areas Rs. 100,00,000/-
With special approval of ZM, Branches can grant up to Rs. 100 Lakhs. CGTMSE cover
has been made mandatory under the scheme. Bank considers Composite Loan under
this scheme for the purpose of investment as well as working capital. (HOBC 104/58
dated 10.08.2010)
The “BOI STAR DOCTOR PLUS” scheme envisages extending credit facilities
to qualified RMPs from the streams, MBBS, BHMS, BDS, BAMS, BUMS, BPT & BOT.
The credit facility is extended for any bona-fide purpose relating to medical
profession, like, setting up new clinic, purchase of equipment, purchase of vehicle,
expansion / upgradation, modernization of existing clinics, etc. The scheme has
proposed no upper limit for consideration of term facility for construction of new /
renovation of existing hospitals, clinics, laboratories, etc., and purchase of
equipment related to the profession, subject to obtaining stipulated margin. However,
maximum quantum of loan is fixed at Rs.100 Lakhs for purchase of vehicles
(ambulance, vans and other utility vehicles) & Rs. 100 Lakhs by way of clean working
capital facility. The scheme has other attractive features with regard to softer ROI
and not too stringent a requirement of collateral security. Up to Rs. 1 Crore may
be covered under CGTMSE (if eligible) and Rs.1 Crore to Rs.10 Crores no
collateral to be obtained and above Rs. 10 Crore, minimum 20% collateral is
required. (HOBC107/154 dated 06.11.2013 & HOBC 110/150 dated 09.11.2016)
Margin:
Security
Limit up to Rs. 25,000/- Hypothecation of assets acquired out of Bank
Finance
• Limit above Rs. 25,000/- up to Rs. 200 Lakh, no collateral / third party
guarantee if CGTMSE guarantee cover available.
Amount of Loan
Need-based limit subject to complying with ceiling criterion of original
investment in equipment. In case of Micro enterprises maximum original investment
in equipment not to exceed Rs. 10 Lakh and for Small enterprises it can be between
Rs. 10 Lakh to Rs. 200 Lakh. Micro and Small enterprises shall be covered under
priority sector. If the original investment is more than Rs. 200 Lakh but not exceeding
Rs. 500 Lakh account will be classified under Medium enterprise.
Margin:
o For loans up-to Rs. 25,000/- - NIL
o For loans above Rs. 25,000/- -20% in rural/semi-urban/specified backward
areas and 25% in others.
Rate of Interest: As advised by Bank from time to time.
Security:
Up to Rs. 25,000/- Pledge/Hypothecation/Mortgage of assets acquired
out of Bank finance.
Limit above Rs. 25,000/- Rs 200 Lakh –No collateral security / third
party guarantee if account eligible for CGTMSE guarantees cover.
Retail Trade
The Scheme will apply to individuals, firms (proprietary / partnership), fair price
shops, consumer co-operative stores engaged/intending to engage in retail trading
of various commodities such as textile, provisions, medicines and cosmetics items,
durable goods and perishable commodities such as meat, vegetables, fruits, milk etc.
The persons intending to start retail trading activity should have some experience in
the line. The condition regarding experience may be waived at the discretion of the
sanctioning authority if he is satisfied that the person is capable of managing the
activity successfully.
Purpose:
Advances under the Scheme may be granted to meet the genuine credit needs only
of the trader to hold and sell goods. Advances may also be considered for acquisition
of Capital Assets and for ancillary equipment like refrigerator, accounting machine,
furnishing/renovating the shop etc.
Rate of Interest:
Interest may be charged at applicable rates as advised by the Bank from time to time.
Disbursement
The Loan amount should be disbursed directly to the manufacturer/
dealer/supplier against proper bills/receipts. However, with a view to ensuring
safe delivery of the assets, it is suggested that the demand draft/pay order drawn in
favour of the supplier may be handed over to the borrower against his
acknowledgement and an undertaking may also be obtained from the borrower that
he will duly deliver the draft to the supplier.
Insurance:
The assets charged to the Bank should be fully insured against all risks and Bank
mortgage clause to be incorporated in the insurance policy.
Waiver of insurance may be considered for credit limit not exceeding Rs. 25,000/-
The Branch Manager may consider such waiver provided sanction of credit limit falls
within his delegated power. Care should be taken to see that the security charged to
the bank is invariably insured in cases where it is so required by law.
Repayment:
Working capital advances granted by way of demand loans should be repaid in
monthly/quarterly or more frequent instalments spread over a period of less than 3
years, inclusive of initial moratorium of three months. Branches may consider
stipulating repayment in Equated Monthly Instalments.
Review
Branches need not to prepare separate proposals/statements in lieu of proposals
for the review of accounts with credit limit of Rs. 500,000/- and less. These accounts
will be treated as reviewed as on the date of completion of credit inspection of the
branch by Officials deputed by the Zonal Office for that purpose. All other advances
with credit limits over Rs. 500,000/- should be reviewed as per applicable format.
Stand-up India Scheme: (HO BC No. 110/51 dated 27.05.2016)
To promote entrepreneurship at grass root level for economic empowerment
and job creation for SC / ST / and/or Women entrepreneurs above 18 years
of age. In case of non-individual enterprises at least 51% of the shareholding and
controlling stake should be held by either an SC/ST or Woman entrepreneur.
Eligibility Criteria:-
SC/ST and/or woman entrepreneurs, above 18 yrs of age
Loans to Greenfield projects. Green field signifies the first time venture of the
beneficiary in the manufacturing or services or trading sector including activities
allied to agriculture.
Borrower should not be in default to any Bank/FI
Security - Besides primary security, the loan amount be secured by collateral
security or guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans
(CGSSI) BC 111/38 Dtd. 15-06-2017)
Repayment-The loan is repayable in 84 months with maximum moratorium
period of 18 months. The Scheme envisages min 15% margin money.
For Working capital up-to Rs. 10 lakh, the same may be sanctioned by way of
overdraft. Rupay Debit card to be issued for convenience of the borrower.
Working Capital limit above Rs.10 lakh to be sanctioned by way of Cash Credit
limit. The portal (www.standupmitra.in) provides information to a potential
borrower on various kinds of handholding support from different agencies and
also provides a window to get in touch with Banks for availing loans
➢ The Applicant first clicks to 'Register' and answers to a few short
questions on the Registration Page of the portal.
➢ Based on the response, the Applicant would be classified as a Trainee
Borrower or Ready Borrower.
➢ Applicant would also be given feedback on his/her eligibility for Stand-Up
India loan.
The constitution of the unit should be private limited company (under the companies
act 2013), Registered Partnership firm (under the Indian Partnership act 1932) and
limited liability Partnership (under the limited liability partnership act 2008).
Margin - T/L (25%), W/C (10%),
Quantum - Min Rs.10 Lakh to Max. Rs. 5 Crores
Guarantee cover: The facility should be covered under credit guarantee cover for
start Ups or CGTMSE as per applicability.
Repayment - For Term Loan-120 Months, including moratorium of 24 Months.
For Working Capital- 120months subject to annual renewal.
Seed capital, Venture capital investment can be taken as margin.
Star Weaver Mudra Scheme:
(Circular Letter No. 2016-17-165 dated 30.11.2016
The cover under this is mandatory for all loans granted under PM Kaushal
Rin Yojana (Skill Loans). The Fund is being operated by NCGTC – National Credit
Guarantee Trust Company, a wholly GOI owned company.
4. Interest Rate: Max. Interest rate not to exceed 1.50% over Base Rate /
MCLR of the Bank.
URL is http://ola.bankofindia.com/PMKVY/WPPages/TrainingPartner.aspx
▪ On line a/c opening form is available also on our website Under “Apply &
track Online Option PMKVYscheme
▪ Training partner should have a corporate CD a/c with us should sign Letter
cum undertaking & Standard Operating Procedure duly signed along with KYC
documents
▪ Branch on receipt of the same should confirm the same by email to
[email protected]
▪ HO on receipt of above from branch will create Unique ID/Code
for Training partner for providing access to online portal for filling up a/c
opening form.
▪ If student/trainee is in another location other than parent branch a
manual a/c to be opened under scheme 105/106 with same Cust ID
charge code as NSDC for all accounts under this scheme.
▪ For minor account to be opened with parent/natural guardian on
E or S basis After data entry, student to visit branch with A/c opening
form, Debit Mandate Letter, Aadhar card etc.
▪ The documents to be signed before officials at branch.
▪ Branch to check Aadhar and amount in Mandate and A/c opening
form are same& KYC guidelines
▪ Funds received from NSDC will be credited to trainees account
from Nodal Branch (CGO Complex Br) Restriction should be put for
withdrawal in the account
▪ Once funds are credited to trainee’s a/c it should be debited and training
partners account to be credited. All fund transfer will be handled
centrally by CGO complex br.
▪ A charge of 1.50% (Min Rs.150) + service tax to be recovered
from amount to be paid to training partners.
▪ RuPay card with Rs. 1 lakh personal accident Insurance cover to
be issued.
a. Business loan
b. Project / Working Capital
c. Modernisation
d. Expansion
e. Diversification
The entrepreneurs can use the portal for:
a. Application filling
b. Project report preparation
c. Financial Training
d. Margin money / subsidy
e. Work shed
f. Vocational skilling
g. Entrepreneur Development Programme
h. Mentoring
Objective:
To ensure timely and transparent mechanism for restructuring the debts of
viable SMEs facing internal/external problems, outside the purview of BIFR, DRT,
and other legal proceedings. Rehabilitating viable sick SMEs to minimize the losses
to the creditors (the Bank) and other stakeholders through an orderly, coordinated
and pre-emptive restructuring program or rehabilitation package.
Eligibility
Criteria:
➢ Standard & Substandard or doubtful which are Viable or Potentially Viable
units of corporate & Non corporate SMEs with outstanding of FB & NFB
up-
to Rs.10 Crores under multiple/consortium banking arrangement..
➢ BIFR cases and cases where operating agencies are appointed.
➢ Accounts involving wilful defaults, fraud, malfeasance and Loss assets will
not be eligible.
➢ Restructuring may be undertaken where funds diverted earlier but brought
back into the business and/or there is change of management and/or where
the diversion is intra company, Diversion in intra-/ inter-company taken
place are eligible provided it is rectified in reasonable time.
Viability Criteria
Viability and the ability to service the debt after restructuring shall be the
important criteria for determining eligible cases i.e. servicing the debt including
restructured debt during concession period (maximum 7 yrs.), and also after
concession package is over servicing debt without help of any more concessions.
The repayment period for restructured (past) debts should not exceed 10 years from
the date of implementation of the package. Average DSCR should be 1.25:1 over
the restructuring period with annual DSCR not less than 1:1.
Time:
Restructuring/Rehabilitation package should be done and implemented within a
maximum period of 120 days from the date of submission of the borrower’s request.
Repeated Restructuring:
Normally restructuring is done for the first time. However further restructuring
may be necessitated in some cases of genuine difficulties. However, the special
dispensation for asset classification enumerated hereinafter in
paragraph (12) would be available only when the restructuring is done for
the first time.
Margin
Upto Rs. 25,000/- : NIL
Above Rs.25,000/-: 25-25%
PROJECT COST
Project cost should not exceed Rs.50 lakhs in case of new projects. In the
case of existing units and service enterprises, the total outlay including the
proposed outlay on expansion / modernisation / technology up-gradation
/diversification or rehabilitation should not exceed Rs. 50 lakhs.
PROMOTER’S CONTRIBUTION
Minimum 10% of project cost Debt equity ratio: 3:1. However a flexible approach
may be followed in the case of rehabilitation proposals.
AMOUNT OF ASSISTANCE:
To meet the gap in equity as per prescribed debt equity norm after taking into account
promoters’ contribution subject to a maximum of 25% of project cost or Rs. l0 Lakh
project, whichever is lower.
INTEREST:
No interest is charged on soft loan component except service charges of 5% p.a.
SECURITY:
No security including collaterals is to be insisted upon for the soft loan.
Purpose of Finance:
For meeting the Fund Based (Working Capital / Term Loan) and Non fund based
(BG/LC) Requirements of units/borrowers in a particular cluster.
Nature of Facility: Working Capital, Term Loan and NFB (LC/BG) limits.
Quantum of Finance:
The quantum of finance to an individual borrower in a specific cluster should be
need based and to be assessed as per requirement of business.
Benefits to Sellers:
Competitive price discovery Without recourse to Seller MSMEs have
the right to choose the best bid Payment received on T+1 on successful
auction
No follow-up with the buyers for payment Not dependent on single
financier
Enhanced productivity and efficient liquidity management Widening the
financing options
The loans are undertaken without physically contacting the borrower till
sanction or disbursement stage. The solution uses algorithms and techniques to
read complex balance sheet, IT returns and bank statements in a very short span of
time (within 25 to 30 min).The module captures the basic details of the
applicant from documents which are available, through smart analytics.
The Contactless platform is the only platform with majority stake of public
sector entities (Public Sector Banks & SIDB1), it is the only platform that has a
Bankers interface which covers Branch level integrations. The platform has
Integrations with multiple agencies for GST, ITR, Bank Statement analyser, Fraud
Check, Credit Information Bureau check, CGTMSE among others. Our Bank has
on boarded the platform and loan to our proponents /borrowers can be
sanctioned till the in principle stage through the platform. The quantum of loan on
contactless platform will range from Rs 1 lakhs to Rs 500 lakhs. The Platform can
also be utilized for renewal of limits in future. The details of new products uploaded
on the portal are enumerated below:
All our Branches and MSME delivery points should actively participate in
garnering quality business through the portal and ensure meticulous compliance of
the lending guidelines contained in this circular.
A. GENERAL GUIDELINES:
Range of Loan: Min. Rs. 1.00 lakhs, Max: Rs. 500.00 lakhs
Eligible Borrowers:
Category of Borrowers:
Other Parameters
ii) Consumer CIBIL: Satisfactory (in case of proprietor, partner, and director)
iii) No. of Cheque bounced: It is desirable that no. of cheque bounces should
not exceed six in last six months and if it exceeds six proper justification
should be recorded in the proposal.
Repayment
i) Working Capital: 01 Year (Renewal every
year)
Margin: Min. 20% for both Working Capital & Term Loan.
Risk Rating: For Contactless Platform a new Credit Rating model has been devised.
The Rating will run on the contactless platform and the final rating will be available
in the CAM report.
A new product “Star MSME GST Udyami Loan" (for Working Capital loans
above Rs. 1 Crore up-to Rs. 5 Crores, under MSME) has been uploaded on the
"onlinepsbloans" portal and made live for the use of borrowers/branches.
Presently only working capital loans are made live for loan amount ranging above
Rs. 1 Crore to Rs. 5 Crores. The Term Loan product will be made live in due course
in future.
Important features are as under:
Limit: Above Rs. 1 Crore & up-to Rs. 5 Crores, Presently only WC loans.
Due diligence: Online GST, ITR, Bank statement, Fraud databases, MCA, Bureau
Reports & others to be verified.
Processing: Up-to Rs. 2 Crores under CAPS & above Rs. 2 Crores, manually as
per bank’s policy.
Verification: Site visit (Residence / Unit – both) to be carried out and veracity of
documents to be verified.
Entry Level: CLP CR 1 to CLP CR 5 only.
Credit Rating: Branch to carry out Credit Rating as per SME / other applicable
model. Credit Rating model from Portal is only for in-principle approval. RoI to be
assigned as per internal Credit Rating.
Industry: All (EXCEPT Gems & Jewellery. Carbon emitting Industries, Aviation,
Defence, Real Estate, Power).
Asset Coverage: Min. 100%
Usage of CBR:
1. Commercial Bureau report I Rank to be obtained for all new business
loans and review of existing business loans having credit limit up to Rs.10
Lakhs from any one of the two ClCs i.e. Equifax or Experian through LOS
once thee-platform is launched.
2. Experian Report / Rank to be generated through LOS only as the ranking
has been customized for our Bank in the order of 1 to 10 where 1 is best
and 10 is worst.
3. Commercial report I Rank from any one of the 3 CICs i.e. CIBIL, Equifax,
Experian to be obtained at the time of processing of all new commercial
business loan proposals and review of existing business loans having
limits above Rs.10 Lakh.
4. CBR is to be used only for the purpose of screening the applicants and in
no way it can be used as a substitute for credit rating exercise of the Bank.
5. The report to be obtained from any one of the CICs and only in case
of anomaly in the report viz. non generation of CBR despite having
credit facilities more than 6 months old, Multiple PAN numbers issue,
No/ wrong PAN number issues, Non-reflection of existing credit
facilities of the borrower or any other anomalies identified by
processing officers then only another commercial report should be
generated from other bureaus.
STAR STANDBY LINE OF CREDIT FOR MSME (HO BC 113/166 dtd. 13-12-2019)
A short term credit facility is designed by the bank for MSMEs falling under MSME
category as per MSMED act 2006, to meet temporary liquidity mismatches and
urgent business requirement. The Product will be known as STAR STAND BY LINE
OF CREDIT FOR MSMEs and only fund based limit demand loan Maximum to
the tune of Rs. 1.25 Crores, for maximum period of 12 months (including 3
month moratorium period) will be sanctioned under the scheme.
Assessment:
Maximum 25% of Existing Working Capital Limit (FBWC + NFBWC). Limits will be
over and above the MPBF/ABF, to be restricted within available Drawing Power.
Security
a) Hypothecation of Stocks & Book Debts; Extension of charge on other existing
Primary and Collateral
security.
b) In case CGTMSE/CGSSI/CGFMU coverage is applicable and available, it should
be obtained for additional limit.
Credit Rating: As per applicable rating models. Entry level norms to be complied
with. Accounts below Entry Level can also be considered under the scheme, by
one level higher than the normal sanctioning authority.
Interest Rate:
0.50% above the present ROI sanctioned to borrower. ROI to be linked to
MCLR/RBLR as the case may be in the original working capital limit.
Margin:
Others
➢ Deviation in Financial parameters are accepted under the scheme up to the
level of maximum relaxation permitted by Board. No specific permission will
be required, in this case. In cases wherein there is deviation in financial
parameters beyond maximum permissible limit as approved by Board, the
same has to be dealt, as per existing guidelines.
➢ While considering limits under the scheme, sanctioning authority to ensure
that all other prevalent norms and guidelines (except those as permitted
under the scheme) as per MSME policy are complied with.
➢ Branch to consider limit under the scheme after verifying the genuine
requirements of the unit/firm/borrower.
➢ Branch may obtain CA certificate for delayed realization of receivables,
receipt of GST input tax credit etc.
➢ Clean Limits are not allowed under the scheme.
➢ The facility will be considered as an exposure on the borrower and the
guidelines stipulated under the RBI Prudential norms shall be adhered to.
➢ Branches to verify end use of funds.
➢ Branches to undertake comprehensive review of the accounts while
considering limits under the scheme, if last review/sanction date is more
than nine months old.
➢ If the account has been reviewed within nine months, limits under the
scheme can be considered on a standalone basis.
➢ Limits under the scheme will be considered only at the specific request of
the borrower.
Scheme Code/Free Code: A New Free Code/ Scheme Code will be assigned.
To be entered in Free Code 3, under MIS code V in Finacle.
Star Subordinate Debt for Stressed MSME (SSDSM) & Credit Guarantee
Scheme for Subordinate Debt (CGSSD) (HO BC 114/95 dtd. 05-08-2020)
GoI through Ministry of MSME has introduced a scheme for the purpose of providing
guarantees in respect of credit facilities extended to stressed borrowers under
MSME category, named as “Distressed Assets Fund – Subordinate Debt for
Stressed MSME” and the credit product for which guarantee would be provided
under the scheme is named as “Credit Guarantee Scheme for Subordinate Debt
(CGSSD)”.
The CGSSD scheme is part of various liquidity measures for MSMEs announced by
GoI vide it’s Atmanirbhar (self-reliant) relief package.
It should be ensured that the finance to promoters under SSDSM should only be
done if the associated MSME unit is found viable as per viability parameters outlined
under restructuring package. Personal loan to promoters cannot be considered on
an isolation basis.
Quantum: Promoter(s) of the MSME unit will be given credit equal to 15 % of his/her
stake (equity plus debt) or Rs 75 lakh whichever is lower.
Rate of Interest:
2.50% over
RBLR
Security:
The sub debt facility so sanctioned will have 2nd charge of the assets financed
under existing facilities for entire tenor.
Guarantee Fee & Coverage: The Guarantee Fee is 1.50% per annum on
outstanding balance which will be recovered from the borrower. The extent of
guarantee will be 90% of the loan amount.
Any guarantee approved under the scheme shall be over and above guarantee
coverage available for existing loan, if available (over & above the eligible limit of
Rs. 200 Lakhs).
Sanctioning uthority:
➢ It should be ensured that the sub debt/ credit released to the promoter is
brought back as equity/ quasi equity/ sub debt in the MSME unit.
➢ In case where borrower is having limits from more than one lender, the
loan under this scheme can be availed though one lender only.
➢ Cases where recovery proceedings are underway, such as through
SARFAESI, DRT, Suit filed etc. are also eligible.
➢ Accounts restructured earlier also eligible.
➢ Risk weight for CGTMSE covered portion will be zero.
➢ Finance is irrespective of credit rating in this scheme.
Free Code: Free Code: 460, Guarantee Cover:17 to be entered under MIS code
V in Finacle.
BOI Star Asset Backed Loan (BSABL) HOBC 115/220 dtd 02-11-21)
A substantial portion of the MSME sector have grown in peer Banks through
collateral based lending. Now, with the implementation of GST, the aim of asset
based lending is to make available customised product for general business
deployment assistance at very competitive price with low risk.
Target Group:
a) All business units who want to avail loan facility for manufacturing and services
activities covered by MSMED Act.
b) All existing business enterprises complied with applicable
statutory requirements such as Udhyam registration, GST Registration, License
under Shops & Commercial Establishment Act, Trade License/other necessary
license to run the unit (as the case may be) etc.
c) Unit should be in operation in last three years and should have earned cash
accrual at least in last preceding year.
d) HUFs are not eligible.
e) Gems and Jewellery business not allowed under the scheme.
Purpose:
a) To provide working capital for building up of current assets.
b) To acquire fixed assets.
c) To purchase/ renovate/ construct business premises/ office/ godown/ shop/
unit .
d) To tide over temporary liquidity mismatch.
e) To repay high cost debt (business, bank, FI)
Facility:
a) Overdraft limit (regular/ reducing)
b) Term Loan
c) NFB (LC/ BGs) as sub limit of Fund based limits.
Loan Amount:
Minimum Rs. 0.10 crores
Maximum Rs.15 crores.
b) Security provided should not be linked with other loan / liabilities. Property
should be exclusive to BSABL. However, the same can be extended with NIL value
in other accounts. However, Properties mortgaged as security for housing loan with
our Bank can be considered for BSABL for residual value of the property after
meeting the minimum margin requirement of Home loan.
c) In case of existing SABL borrower where charge over assets in favor of Bank is
available then Drawing Power not to be linked with level of stocks / book debts /
other assets.
Credit Rating:
As per applicable rating models. Entry level norms to be complied with.
In case, at the time of review, if the rating is below entry level, the interest benefit will
be withdrawn and the same may be restored at the time of subsequent reviews
subject to upgradation in rating.
Interest Rate:
b) For tenor above 5 yrs - RBLR one year + BSP/BSD + CRP (1.25)
Sanctioning Authority:
SMELCC-II: 2.50 Cr
ZLCC: 7.50 Cr
Target Group :
Nature of facility: Term Loan, Cash Credit, Bank Guarantee, Letter of Credit
Pricing:
For Internal rating grades 1 to 4:- RBLR + 2.00% p.a
For Internal Rating grades 5 to 6:- RBLR + 2.50% p.a.
In case of coverage under LGSCAS;
ROI to be capped at 7.95% p.a. till the availability of guarantee coverage under
LGSCAS after that pricing will be as per existing norms of the scheme.
Repayment:
For working capital: Payable on demand (annual review)
For Term Loan: Maximum period of 10 years including moratorium period.
Maximum moratorium 18 months for construction of Hospital/Nursing
home/Clinic (6 months in case of purchase of equipment only)
Ministry of Housing and Urban Affairs, Government of India has come out with
Scheme "PM Street Vendor's Atma Nirbhar Nidhi (PM SVANIDHI)" aimed for
financing to street vendors in order to make them self-reliant and come out of distress
situation due to COVID-19 pandemic and consequent Iockdown. In order to
implement the said Scheme in our Bank, a new Scheme named Star Hawker
Atmanirbhar Loan (SHAL) was launched for Street Vendors engaged in vending in
Urban area , who are in possession of certificate of vending / Identity card issued by
Urban Local Bodies (ULBs), or identified in the survey but yet to be issued Identity
Card / or issued Letter of Recommendation (LoR)by the ULB / as notified in the
website of Ministry / State Govt. / ULB and portal created for this purpose by
Government. Joint Liability Groups (JLG) of eligible vendors covered under ULB-led
identification will also be eligible.
I. Eligibility — Existing Street Vendors who has prepaid/ Paid their 1st & 2nd
Loan availed from our Bank
ii. Minimum Repayment Period for 2nd loan: Minimum repayment period of 6
months for 2nd loans.
iii. Quantum of Loan: max Rs 50000/-
POs/FPOs constituted and registered under any of the following legal provisions:
e) Public Trusts registered under Indian Trusts Act, 1882, are eligible to be covered
under CGTMSE.
Credit facilities extended to POs / FPOs for Core Agricultural activities are not
eligible to be covered under the Credit Guarantee Scheme of CGTMSE.
Fundamentally, the POs / FPOs should be identified as a separate legal entity and
the business activities should fall under Manufacturing, Service activities and retail
Trading as per MSMED Act, to be eligible for coverage.
Credit Facility extended to Borrowers engaged in Retail Trade activity are covered
under CGTMSE scheme. The details are hereunder:
a. Exposure Limit for Credit facility of Retail trade segment will be upto 100 Lakh
per MSE Borrower.
c. Applicable Fee i.e. AGF will be charged at the rate of 2% of the guaranteed
amount for the first year and on outstanding amount for the remaining tenure of the
credit facility. Differential pricing structure depending upon NPA percentage and
Claim payout ratio of the Member Lending Institution (MLI) will also be applicable
on the AGF.
a. The Wholesale Trade would be considered at par with MSE Retail Trade and
therefore, all the existing terms & conditions of coverage applicable to MSE
Retail Trade would be applied for coverage of Wholesale Trade under the
scheme.
b. The Educational/Training Institutes would attract fee, extent of coverage and
other terms & conditions as applicable under existing normal scheme.
a) The credit facilities extended by the Bank, CGTMSE guarantees, in case of default
by the borrower, up to 50% / 75% / 80% /85% as the case may be of the defaulted
principal amount in respect of term loan and / or outstanding Working Capital
advances (inclusive of interest), as on the date of account becoming NPA, or as on
the date of filing the suit, whichever is less.
b) Other charges such as interest on principal term loan, penal interest, commitment
charge, service charge, or any other levies/ expenses shall not qualify for the
guarantee cover.
c) Guarantee cover under the scheme is available for a maximum credit/loan ceiling
of 200 Lakhs even though the actual loan/limit may be in excess of 200 Lakhs,
provided the account is otherwise eligible for cover under the scheme.
A. CGTMSE has revised guidelines for collection of fees under the scheme
w.e.f. 01.04.2018 as under:
AGF will be charged on the guaranteed amount for the first year and on the
outstanding amount for the remaining tenure of the credit facilities sanctioned /
renewed to MSEs on or after April 01, 2018 as detailed below:
Demand for ASF will be generated in the accounts in which guarantees issued up
to March 31, 2013 against the credit facilities sanctioned / approved / renewed by
Bank up to Dec 31, 2012 (i.e. For Accounts sanctioned before 01-01-2013).
Details of ASF is as under:
Composite all-in Guarantee Fee payable on the Sanctioned credit facility upfront.
Rate of Guarantee Fee is as under:
Credit Facility Annual Guarantee Fee (AGF) [% in p.a.]
Women, Micro Enterprises, units in Others
North East Region (Inc. Sikkim)
Up to Rs. 5 lakh 0.75% 1%
Above Rs. 5 lakh and 0.85% 1%
Up to 200 lakh
Composite guarantee fee at rate mentioned above payable per year up front.
Risk Premium as applicable and intimated by CGTMSE will be applicable over
and above the rates as mentioned above.
D. Risk Premium
CGTMSE had introduced risk based pricing structure based on NPA
percentage and claim pay-out ratio for charging of annual service fees / annual
guarantee fees. This Risk premium would be charged over and above applicable
Standard Rate (SR) on credit facility sanctioned on or after April 01, 2016 and
cover under Credit Guarantee Scheme.
Sharing of Guarantee Fee & Annual Service Fee:
Primary Security:
As per the Scheme Primary security is must for coverage. As such Clean ODs/CCs
are not eligible to be covered under the scheme. Further, CGTMSE has clarified that
any Cash Credit sanctioned under Stocks & Book debts or purely against Book debts
are also eligible under CGTMSE. Assets created out of credit facility and
unencumbered assets (movables/immovable) pertaining to the business of the
borrower are treated as primary security.
For the unit covered under CGTMSE and becoming sick due to factors beyond the
control of management, assistance for rehabilitation extended by the
Bank could also be covered under the scheme provided the overall assistance is within
the credit cap of Rs.200 lakhs.
iv. The credit facility has been recalled and the recovery proceedings have been
initiated under due process of law. Mere issuance of recall notice under SARFAESI
Act 2002 cannot be construed as initiation of legal proceedings for purpose of
preferment of claim under Credit Guarantee Scheme (CGS). Banks are advised to
take further action as -contained in Section 13 (4) of the above Act wherein a secured
creditor can take recourse to any one or more of the recovery measures before
submitting claims for first instalment of guaranteed amount. In case the Bank is not
in a position to take any of the action indicated in Section 13(4) of the aforesaid Act,
they may initiate fresh recovery proceeding under any other applicable law and seek
the claim for first instalment from the Trust.
v. For the purpose of the scheme, issue of notice under Lok Adalat is sufficient to
prove the legal proceedings have initiated for the cases where the total default is up
to 20 lakhs only.
vi. Waiver of Legal action in respect of smaller loans: CGTMSE has waived the pre-
condition of initiation of legal proceedings for invoking of guarantees where the
aggregate outstanding amount considered eligible for claim settlement by CGTMSE
does not exceed 250000 per claim effective for those claims lodged on or after
14.03.2018. Now, this waiver has been revised to 100,000 for those claims lodged
on or after 08.10.2021. The aggregate outstanding amount considered is the total
outstanding of all credit facilities of particular borrower as on NPA date.
a. CGTMSE shall pay 75% of the Guaranteed Amount (referred as "1st Claim") on
preferring of eligible claim, within 30 days, subject to claim being otherwise found in
order and complete in all respects. If 75% of the guaranteed amount is not paid within
30 days, CGTMSE shall pay interest on the eligible claim amount at the prevailing
Bank Rate for the period of delay beyond 30 days.
b. The balance 25% of the Guaranteed Amount (referred as "2 nd Claim" or "Final
Claim") will be paid by CGTMSE on conclusion of recovery proceedings.
c. On a claim being paid, the CGTMSE shall be deemed to have been discharged
from all its liabilities on account of the guarantee in force in respect of the borrower
concerned.
d. In the event of default, the lending institution shall exercise its rights, if any, to take
over the assets of the borrowers and the amount realized, if any, from the sale of
such assets or otherwise shall first be remitted in full after adjusting the cost incurred
by the Bank for recovery-of the amount.
CGTMSE shall appropriate the same towards the pending service fee, penal interest
and other charges due to CGTMSE, if any, in respect of the concerned credit facility.
Only thereafter claim for the remaining 25% of the guaranteed amount may be made.
e. The Bank shall be liable to refund the claim released by the CGTMSE together
with penal interest at the rate of 4% above the prevailing Bank Rate, if such a recall
is made by the Trust in the event of serious deficiencies having existed in the matter
of appraisal / renewal / follow-up / conduct of the credit facility or where lodgement
of the claim was more than once or where there existed suppression of any material
information on part of the lending institutions for the settlement of claims. Bank shall
pay such penal interest, when demanded by the Trust, from the date of the initial
release of the claim by the Trust to the date of refund of the claim. Finally, the loss
will be shared by CGTMSE and Bank in the proportion of 50%/ 75%/ 80%/ 85% and
50%/ 25%/ 20%/ 15% respectively i.e. based on extent of guarantee cover obtained.
CGTMSE is making all claims/refund payments through RTGS/NEFT system.
The 1st Claim amount received from CGTMSE will have to be kept in Sundry Credits
and only after the recovery efforts are exhausted and claim finally settled, the amount
may be appropriated to the borrowers' loan account in terms of the agreement that
the Bank has entered into with CGTMSE / the rules of the Government for the same
in vogue. All the branches are advised to keep the claim received from CGTMSE in
Sundry credit account "XXXXXSUNCR801" especially created for this purpose & not
to credit in loan account. At the same time the claim received has to be entered in
finacle menu CGTMSE.
Purpose:
a) To purchase/construct house/flat on ownership basis
b) To renovate/extend/repair existing house/flat.
c) To purchase a plot of land for construction of house.
d) i. To acquire household articles along with the house/flat - for furnishing
the House/flat.
ii. Loan for installation of Solar PVs
Eligible Components
i) Cost of the Plot of land.
ii) Cost of Construction.
iii) Cost of Flat in case of Purchase of Flat.
iv) Expenses for furnishing the house/flat/installation of Solar PVs
v) Undertaking regarding Cost of GST and other charges levied Levied Any refund
shall be deposited in the respective housing loan account.
vi) Other costs such as payment towards extra amenities like Parking slot,
Swimming Pool, Club membership, charges towards electric meter, Charges
towards Garden maintenance, etc. & all such costs/expenses which are borne by
the proponent separately from his own sources
Eligible Borrowers
The Scheme is targeted to attract select customers who are -
i) In permanent salaried employment or
ii) Professionals like Doctors, Lawyers, Engineers, Chartered Accountants, etc.or
iii) Self-employed persons having regular income and/or
iv) Having any other regular source of income.
Age
Repayment Period for salaried persons as well as others: - Up to the age of 70
Years.
STAR DIAMOND HOME LOAN : (Branch Circular No. : 116/ 05 Date 01.04.2022 Part
-2 Page 122)
Scheme Only those states where undivided share of the property being
coverage developed, i.e, (houses/flats in under construction projects) is not
registered(The scheme will not be applicable to the branches in
Mumbai/Maharashtra
For small cities and towns (tier II and tier Ill cities only}: Minimum
Quantum of project cost of Rs.8 Lac and minimum Home Loan requirement
loan of Rs.5.00 Lac can be entertained under this Special
Scheme For other cities- Metros & Major cities:
Project cost of the individual flat to be minimum Rs.20.00 Lac
and minimum Home Loan finance to be Rs.15.00Lac
i. Existing Credit customers of the bank with satisfactory
Eligible track record for past 3 years.
Customers
ii. All existing Deposit customers of the Bank classified as
'Diamond Customers' based on their balances in SB/CD
accounts.
iii. All existing Fixed (term) Deposits customers with average
deposits of Rs.5 lac with the branch during last 3 years.
iv. All new customers with established regular source of
income including Centrai/State/PSU permanent
employees, professionals like Doctors, CAs, etc. after
ensuring compliance with KYC norms and with
Average Gross annual Income of not less than Rs.5
lac during last 3 years.
v. All permanent employees of Public/Private sector
maintaining their salary accounts with the branch.
vi. All 801 Credit Card holders with satisfactory track record
during last 3 years.
vii.lndividualshaving movable/immovable assets of min.
Rs.10 lacs as part of their worth after ensuring compliance
with KYC norms along with Due diligence from an outside
agency
Government of India has enacted the Real Estate (Regulation and Development) Act
2016 (RERA) which game into effect W.e.f 01.05.2017. While some Of the States have
already notified the Rules, the remaining States are expected to notify the same in due
course of time. The salient features Of the RERA Guidelines are as under:
The salient features Of the RERA Guidelines are as under
1 RERA applies to all projects both residential & commercial except the following :-
Where area proposed to be developed does not exceed 500 sq. mts number of
apartments proposed to be developed does not exceed 8 inclusive of all of
phases.
Where promoter has received completion certificate for Real Estate Project
prior to commencement Of Act.
Further, all the existing approved projects should be reviewed to ensure that
the project complies with the RERA guidelines. Moreover, in All the existing
Home Loan accounts disbursed after 01.05, 2017, Where possession have not
been received by the borrower, While being reviewed annually, the compliance
regarding RERA Guidelines should be necessarily looked into. A check list is
annexed (Annexure-I), which should be submitted by the processing officers
along with the appraisal form for all Horne Loans/project approvals. In other
States & UTs, where the RERA is yet to be implemented, extant guidelines
continues.
Quantum of finance Max. Rs.300 Lacs (Authority for deviation Above Rs.300.00
Lakhs NBGLCC)
Rate of Interest ROI is subject to change from time to time as per HOBC Ref.
no.115/45 dated 04.05.2021. Festive offer HOBC 116/175 dt
28.09.22
Concession in ROI: 0.10% concession in ROI can be given for the below
mentioned category of borrowers,
Star Progressive Education loan: For studies from Pre-school to Higher Seco.
School
Star Education Loan: For Studies in India (From Higher Secondary school
onwards)
Star Education Loan: For Studies Abroad (From Higher Secondary school
onwards)
Star Vidya Loan: For studies in premier Educational Institutes.
Star Pradhan Mantri_Kaushal Rin Yojana: For Skills/Vocational studies
Star Education Loan to Working Professionals
Takeover of Education Loans from other Banks
PADHO PARDESH — Scheme of Interest Subsidy on Educational Loans for
Overseas Studies for the Students belonging to the Minority Communities
Repayment period: For loan/reducible OD—84 months wef next month of first
disbursement. For non-reducible OD- Repayment should be fixed on reaching the age
of 68 years to ensure closure of loan before completion of 75 years of age.
Net Take home pay/income (NTHP):
For Gross monthly income up to Rs.1 lakh-NTHP minimum 40%
For Gross monthly income over Rs. 1 lakh to Rs.5 lakhs minimum30%
For Gross monthly income over Rs.5 lakhs- minimum 25%
Processing charges: 50% concession in charges
Rate of Interest: Spread is from 2.00% to 3.00%
1.Fully Secured RBLR+2.00%=8.85%
2. Clean/ Unsecured RBLR+3.00%=9.85%
Shall be guided by the circular issued on Rate of interest from time to time and the
latest being HOBC Ref. No.115/45 dated 04/05/2021.
(Source: BC 116/08 Dt. 01.04.2022 Master Circular)
Purpose: To purchase durable and sophisticated aids / appliances that promote their
physical and social rehabilitation
Amount- For salaried: Max. 2 lac -- For self-employed/ Professionals: Max. 1 lac
Eligible Amount-
15 times of net salary for salaried persons and 100% of net annual income as per
latest Income Tax Return for Self-employed/ Professionals.
Margin: 10% (May be waived in deserving cases, as also in DRI cases, Discretion
with the Sanctioning Authority).
Repayment:
12 to 60 months, commencing one month after full disbursement/ three months after
first disbursement, whichever is earlier.
Age: For loans over Rs.1.00 lakh, not to exceed 75 years at the end of repayment
period For Repayment period beyond 75 years (Age): Max. loan limit Rs. 1.00 lac
Loan Limit/Quantum of finance: 15 months Net pension for secured & 20 - months of
Net pension for unsecured loan.
Regular Pensioner/ Family Pensioner where PPO is held at Nagpur Govt. Business
Branch- Max. Rs.10 00 000/-.
Pensioners who are getting pension through Treasury/ Defence Pension Disbursing
Office directly to the credit of their Savings Account with our Nagpur Govt. Business
Branch- Max. Rs. 5 00,000/-
Family Pensioner who is getting pension through Treasury/ Defence Pension
Disbursing Office- Max.Rs. 3, 00,000/-.( *Subject to the loan tenure should not exceed
the age of ceasing / stopping of pension as per Pension Payment Order.)
Co-Borrower: In case of regular pensioners, nominee/legal heir and in case
of family pensioner legal heir will be co borrower.
OD Facility up to 3 months Net pension, max. Rs.100,000/- only to those pensioner
drawing pension from the branch which should be holding their PPOs.
Processing charges: No processing charge for Senior Citizens (60 years & above).
For others — one time @ 2% of loan amount Min.Rs.500 and Max. Rs.2,000/-. No
processing charges for senior citizens.
ROI for both Secured & Unsecured: Shall be guided by Circulars issued from time to
time and latest being HOBC Ref. No. 115/45 dated 04/05/2021. (RBLR+2.50 %)
All other terms & conditions: - As per Star Personal Loan Scheme
(Source: BC 116/08 Dt. 01.04.2022 Master BC)
SECURITY:
a) Equitable / Legal mortgage charge over the property (including registration of
equitable mortgage charge in applicable states & Registration of EQM charge with
CERSAI in eligible accounts)
b) Obtaining personal guarantee of additional individual(s) is left to the discretion
of the sanctioning authority.
GUARANTOR:
Obtention of guarantor/s has not been specifically stipulated under the scheme. The
sanctioning authority may consider obtaining guarantor/s to strengthen the credit
proposition. In case mortgage of property standing in the name of a third party is
obtained, the guarantee of the person/s in whose names the property stands must be
obtained
The ROI based MCLR prevailing on the date of first disbursement will be applicable
till the next reset (review) date, irrespective of the changes in the benchmark during
the interim period.
RBI has permitted Banks to charge Spread for two components 1. Business Strategy
Spread and 2. Credit Risk Premium (Credit Spread) over and above applicable MCLR.
The final rate of Interest shall be as under:-
Rate of Interest = MCLR + Business Strategy spread + Credit Risk Premium.
Whenever a borrower's credit requirements exceed 50% of the exposure ceiling or Rs.100
crores whichever is higher, borrower would be encouraged to scout for another
Term Exposure
The aggregate of domestic term exposure in the form of term loans, deferred payment
guarantees, term letters of credit , non-convertible debentures and other investments in
corporate debt instruments (including redeemable preference shares) should not exceed
50% of the total domestic credit exposure of the Bank.
The Bank would assume exposures with an initial maturity of 10 years or less for industry,
trade or business as also in the personal segment.
In the agricultural segment and also for infrastructure projects, the maximum initial maturity
could extend upto 25 years.
A further exception in this regard is retail loan for financing houses etc. where a clear cut
scheme has been evolved for granting loans for long maturity periods.
In other cases where longer duration exposures are to be taken, the same may be
approved by the Management Committee.
Administrative Clearance
Normally, requests for credit facilities may be initiated at Branch / Zonal Office / NBG /
Head Office level as per the instructions in force. In case of bigger proposals, the same
may be initiated in consultation with the delegatee within whose powers the limits fall for
sanction or higher authorities. The highlights of the revised "New Business Group
Clearance" guidelines is as under -
1. ACC (Administrative Clearance Committee) at NBG Offices will be authorized to approve
all New Business Clearances from Rs.5 crores and upto Rs.35 crores subject to -
• Maximum of NBGACC level sanction and -
• The proposal have at least entry level ratings (internal credit rating)
• Risk Weight of 100% and better (as per external credit rating)
Except proposals pertaining to NBFC, Commercial Real Estate sector and Infrastructure
and other sectors as per respective Policy, wherein the branches / offices are required
to obtain the ACC clearances at HO in case of new /additional limits.
2. All proposals > Rs.35 crores and exposure to sensitive sector as mentioned above,
to be considered by ACC at Head Office.
TENURE OF CREDIT
As a commercial bank, we should have a proper mix of short (up to one year), medium
(one to three years) and long term (three years and above) exposures. Ideally exposure
within the short and medium term tenure would be desirable especially in view of the
reducing maturity of term deposits.
The asset liability match is monitored by the Asset Liability Committee of the Bank. The
ALM Committee decides a suitable cap on term exposure in relation to the total credit
exposure of the Bank .The longer the term of the credit, the greater the uncertainty and
the attendant risks. The Bank is essentially in the short term market and is not expected
to assume very long term exposures.
Maximum repayment period for term loans in case of infrastructure projects/core
industries shall be 25 years including initial moratorium period and 10 years in case of
non-infrastructure projects, including initial moratorium period. A further exception could
be made in regard to personal loans for financing houses etc. where a clear cut scheme
has been evolved for granting loans for longer maturity periods.
In cases where the tenure need to be exceeded for reasons like high cost of project
specific approval of the sanctioning authority for such elongated periods must be
obtained.
CREDIT EXPANSION/ACQUISITION
Primary Acquisition
These are direct credit acquisitions through marketing efforts, subject to extant
guidelines. An asset may be acquired by us as sole banker or through consortium or
multiple banking arrangements or syndication.
Direct acquisition through robust marketing efforts, lead generation, proper due diligence,
good turnaround time and a effective credit delivery mechanism are the cornerstones of
direct acquisition.
Secondary Acquisition
Takeover of sound and remunerative accounts maybe considered with proper
verification of past records keeping in mind that most corporates and other entities are
no longer bound by traditional alignment with a bank, due to past connections. Guidelines
in this regard will be laid down by the Board or Management Committee of the Board
from time to time.
WORKING CAPITAL
We may continue to adopt the three extant methods of assessment of working capital
limits as follows:
Working Capital Limits upto Rs.5 crores from the banking system
1. Turnover method.
Working Capital Limits for more than Rs.5 crores from the banking system
Two methods are available under this category –
(i) Holding level/MPBF and
(ii) Cash budget method.
TURNOVER METHOD
i) This method may be applicable to all borrowers enjoying fund-based working capital
credit limits upto and inclusive of Rs.5 crores with the banking system. The working
capital requirements of the borrower may be computed at 25% of the projected annual
turnover of which at least four-fifth (i.e. 20% of the projected annual turnover) should be
provided by the bank as working capital finance, and balance one-fifth (i.e. 5% of the
projected annual turnover) contributed by the borrower, as margin towards working
capital.
ii) These guidelines have been formulated assuming average production/ business cycle
of 3 months. In reality, this cycle could be longer or shorter. The borrower’s working
capital requirement may also be assessed on the basis of traditional approach of
production/business cycle and limits may be considered in excess of 20% of the
projected annual turnover wherever warranted due to longer cycle, keeping a minimum
margin of one-fifth of the working capital requirements. On the other hand, in case of
shorter production/ business cycle, working capital limits at 20% of the projected annual
turnover may be sanctioned and actual drawing should be allowed on the basis of
drawing power after excluding unpaid stocks/stocks acquired under D/A L/C.
MPBF can also be worked out on the basis of Second Method as under:
a. MPBF = Working Capital Gap – 25% of Total Current Assets
Or
b. MPBF = Working Capital Gap - Actual/ Projected NWC
Borrowers enjoying working capital limits in excess of Rs.5 crore may be given option to
adopt the Cash Budgeting Method at the discretion of the Bank. In case such borrowers
choose the Cash Budget System of lending, they have to satisfy the Bank that they have
necessary infrastructure in place to submit the required information periodically in time.
The scope of internal MIS should be satisfactory and commensurate with the level of
operations. The borrower must have a finance professional and computerised
environment.
Under this method, the peak level cash deficit will be the level of total working capital
finance to be extended to the borrower by the banking system. The peak level cash
deficit will be ascertained from the projected Cash Budget Statement submitted by the
borrower.
Assessment of working capital requirements may be done on the basis of the annual
projected Cash Budget Statement comprising of projected receipts and payments for the
next 12 months on account of (i) Business Operations, (ii) Non-business Operations, (iii)
Cash flow from capital accounts and (iv) Sundry items.
In the case of Services Industry, Infrastructure, IT, etc. the limits computed may not be
supported by drawing power due to the nature of business. e.g. in the case of a logistics
company operating a fleet of trucks, major part of working capital funds may be utilized
for salary, lease rentals, fuel, toll etc. There may not be inventory except spares,
consumables etc. However there may be receivables in the books. Hence, the working
capital limits may have unsecured portion. Branches should therefore structure the limits
appropriately and also go by delegation applicable to unsecured/partly secured limits.
The borrowers enjoying working capital facilities of Rs.1.00 Crore and above from the
Banking system are required to submit following statement under QIS, in addition to
MSOD and usual stocks/book debts statements:-
QIS-l: Estimates for the ensuing quarter (to be submitted in the week preceding the
commencement of quarter to which it relates).
QIS-Ill: Half yearly operating statements and Half Yearly funds flow statements
(Within 2 months from the close of half-year).
Financial Follow-up Report (FFR): FFR statement may be accepted from the borrowers
enjoying working capital limits under Consortium Arrangement, on monthly basis, issued
by State Bank of India/ Other Bank/ Other Fl wherever it is Lead Bank, to fall in line with
other lenders.
Any deviation from the accepted level and actual performance are required to be looked
into which will have impact on the operative limit. ln case of large variations, further
operations in the account will have to be permitted very judiciously.
Temporary overdrafts should not be allowed within first six months of the opening of
an account with us. However, in very emergent cases over limits not exceeding 30
days and ad-hoc limits for not exceeding 90 days may be considered. It should be
ensured that TOL/ Adhoc limit put together should not exceed 180 days in a financial
year (April to March) in a particular account.
Guarantees
Bank Guarantee is an indemnity letter in which the bank commits itself in writing to be
legally bound to pay a certain sum of money. The bank will pay if its party fails to
perform or if any other form of default occurs.
There are three parties involved in a Guarantee:
1. Applicant who is the Principal Debtor
2. Bank who stands as a Guarantor, and
3. The Beneficiary in whose favour, the guarantee has to be issued by the bank.
Factors considered by Banks for appraisal of Bank Guarantee limit:
1) Purpose:
I. Financial:
1) In favour of customs/Excise/Tax authorities towards tax/duties payment etc.
2) Favouring courts for release of amounts
3) for guaranteeing loan repayments
II. Performance:
Guarantees may continue to be issued in Paper Form and delivered by issuing Banks
to beneficiary/applicant as being done presently. However, it addition to it, a separate
advise of the BG to be sent to the advising bank through SFMS only after which paper
BG could become operative.
LETTER OF CREDIT
A Letter of credit (Documentary Credit) is an instrument, which can be used for settling
the trade payments. It may be defined as follows:
“Credit means any arrangement, however, named or described, that is irrevocable and
thereby constitutes a definite undertaking of the issuing bank to honour* a complying
presentation.”
* Honour means:
a. To pay at sight if the credit is available by Sight payment.
b. To incur a deferred payment undertaking and pay at maturity if the credit is
available by deferred payment.
c. To accept a bill of exchange (‘draft’) drawn by the beneficiary and pay at maturity
if the credit is available by acceptance.
In common parlance, documentary credit is like a bank guarantee except that the bank
guarantee covers a situation of non-performance of the contract (payment is made
when our customer does not perform as per the contract). Whereas a documentary
credit covers a situation where payment is made on performance of contract. From
the definition, we can derive five important features of documentary credits, viz.:
• It is an irrevocable undertaking in writing
• Given by a Bank called the Opening Bank
• On behalf of its customer who is the importer or buyer
• To honour bills drawn by a third party who may be the beneficiary or the transferee
under the credit, subject to compliance with terms and conditions of the credit
I. Opener (Importer/Buyer): means the party on whose request the credit is issued.
II. Issuing Bank: means the bank that issued a credit at the request of an applicant or
on its own behalf.
III. Advising Bank: means a bank that advises the credit at the request of the issuing
bank.
IV. Beneficiary (seller/ exporter): means the party in whose favor the credit is issued
V. Nominated Bank: means the bank, with which the credit is available or any bank
in the case of a credit available with any bank.
VI. Confirming Bank: means the bank which guarantees honouring of bills by the
Opening Bank under the credit i.e. if the Opening Bank fails for any reason to
honour the bills, Confirming Bank honours the same, wherever available.
VII. Reimbursing Bank: the bank which pays claims made by the nominated bank after
negotiating bills drawn by the exporter under the credit.
Modes of Banking Arrangement
Consortium advances mean advancing loans to a borrower by two or more banks jointly
by forming consortium. Under consortium financing, several banks (or financial
institutions) finance a single borrower with common appraisal, common documentation,
joint supervision and follow-up exercises. Documentation shall be based on single
window concept and the same will be undertaken by the lead bank. The bank with the
highest share in the consortium will be normally designated as Lead Bank or as decided
by the consortium.
Number of participating banks: Maximum 10 banks in case of fund based working capital
limits upto Rs.100 crores and Maximum 15 banks in case of limits above Rs.100 crores.
Bank has 2 segments of consortium accounts as:
i) Accounts where we are holding less than 10% share in consortium and
Based on the criteria of credit rating/risk weight of the account, the accounts where
internal rating is within entry level and external rating is 'A' and above, Branches should
endeavour to increase/maintain our share at 10% or more. However, in case of accounts
with deviation in entry level norms and risk weight is 100 or more, attempt would be made
to exit from the consortium in a time bound manner, on a case to case basis.
Syndication
Joint Lending Agreement (JLA) has been introduced as per Ministry of Finance
guidelines in July 2012 and the revised guidelines are in force since June 2013. The
scheme shall be applicable to all lending arrangements, with a single borrower with
aggregate credit limits (both fund based and non-fund based) of Rs.150 crore and above
involving more than one Public Sector Bank.
Sub-participation is often used where a lender, whilst wishing to share the risks of certain
loans, nonetheless prefers to maintain the status quo. There is no change to the loan
documentation – the lender simply sells all or part of the loan portfolio to another lender
or lenders.
Credit Process Audit shall be carried out in all accounts - existing as well new accounts
with limit of Rs.50 lakh and above before disbursement of new/additional limit. However,
it will not be applicable for release of ad-hoc/ over limit/one time facility unless and
otherwise specified by the sanctioning authority.
After necessary security documents are executed, charges and other relevant pre
disbursement formalities are completed; the disbursing officer will submit a certificate as
per the format (CPA-1) to the department/Branch head to this effect. The concerned
controlling head at branch level will verify & satisfy that all pre-disbursement formalities
are completed as per sanctioned proposal. He will then countersign the certificate and
forward to the Zonal Manager with the request to depute CPO. On receipt of the
certificate (CPA-1) Zonal Manager shall depute the CPO to the branch to check, verify
and report about the compliance of sanctioned terms, security creation etc. immediately.
CPO will submit his report in format CPA-2 to the Branch Manager. If no material
deviations from sanction terms found discernible, the Branch Manager shall recommend
for closure of CPA-2. However, if material non-compliance is noticed, the Branch will
ensure compliance of all conditions or approach the sanctioning authority for approval
to release limit pending compliance of certain terms of sanction.
The sanctioned limits will be released only after closure of CPA-2 / approval to release
limit pending compliance of certain terms by Sanctioning Authority.
CPA-3 is applicable to all standard accounts with limits of Rs.5.00 Crores and above
including standard and NPA Restructured accounts- New/Review with additional limit
sanctions. It is also applicable in case review with same limit with modification in terms.
This covers overseas account also with threshold limit of USD 1 Mio and above or its
equivalent. However, review with same limit with same terms CPA- 3 is not required/
applicable.
CPA-3 will be carried out by Concurrent Auditor of the Branch as separate report Quarter
wise for all –
The advances against Book Debts shall he considered as unsecured for the purpose
of delegation.
Second charge on Movable / Immovable assets and available collateral security shall
be considered as unsecured for delegation purposes, however, for classification in
Balance Sheet, the credit exposures would be treated as secured to the extent
covered by residual value.
For the purpose of delegation, the definition will be as per delegation of powers
approved by the Board. Availability of corporate/personal guarantee would not make
an advance a secured one.
Customers with turnover of Rs.250 crore & above (as per revised norms w.e.f.
01.07.2020) are serviced through Large Corporate and other Large branches.
Financial Statements
• Profit and Loss Account with all annexures- Profit & Loss Account is an account
in the books of an organization to which incomes and gains are credited and expenses
and losses debited, so as to show the net profit or loss over a given period. Thus, it is
a financial statement showing a company's net profit or loss during a given period.
Long Term Liabilities: All loans which are not repayable within one year from the
date of balance sheet are grouped under long term liabilities. Under long term liabilities
the items normally appear are: Term borrowings from banks, Term borrowings from
other term lending institutions, Debentures, Deferred payment credits, fixed deposits,
and unsecured loan not payable within 12 months period.
Current Liabilities: All liabilities which are repayable within a period of one year are
grouped under current liabilities.
Major items that come under current liabilities are: Short term borrowings (including
bills purchased & discounted) from (a) Banks (b) Others , Unsecured loans
payable within a year , Public deposits maturing within one year, Sundry creditors
(Trade) for raw material and consumable stores and spares, Interest and other charges
accrued but not due for payment, Advance payments from customers, Deposit from
dealer, selling agents etc. (these deposits may be treated as term liabilities irrespective
of their tenure if such deposits are accepted to be repayable only when the dealership/
agency is terminated), Instalments of term loans, deferred payment credits,
debentures, redeemable preference shares and long term deposits payable within one
year, Provident fund dues, Provision for taxation, Obligation towards workers
considered as statutory, Provision for dividend, Gratuity payable within one year, Other
provisions, Any other payment due within one year.
Fixed Assets: Fixed assets are meant for use in the business as permanent capital
assets. These are otherwise known as block assets. It includes land, building, plant &
machinery, furniture & fixtures, vehicles etc. They also include capital work in progress.
Fixed asset of one concern may be a current asset for another. A sewing machine is
a fixed asset for the tailor but for the company manufacturing sewing machines, it is a
current asset.
Current Assets : Current assets are the liquid assets in a business concern
determining the solvency of it and are held for sale or conversion into cash during the
operating cycle of the business or with in twelve month. The operating cycle of most
of the business enterprises is usually less than one year. As they are easily convertible
into cash, they are called liquid assets.
Items coming under current assets are: Cash and bank balances; Fixed deposits
pledged as margin for BG and LC, Receivables arising out of sales other than deferred
receivables (including bills purchased and discounted by bankers); Instalments of
deferred receivables due within one year; Raw materials and components used in the
process of manufacture including those in transit; Stocks in process including semi-
finished goods; Finished goods including goods in transit; Other consumable spares
(12 months’ consumption for imported items and 9 months’ consumption for
indigenous items may be treated as current assets for the purpose of assessment of
working capital requirements); Advance payment for tax; Pre-paid expenses;
Advances for purchase of raw materials, components & consumable stores; Monies
receivable from contracted sale of fixed assets during the next 12 months.
Non-Current Assets: Assets which are neither current in nature nor fixed in nature
are grouped under this head. These include all non-current assets such as book-debts
above 6 months, unquoted investments, loans and advances to employees, officers
and directors, loans to and investments in subsidiaries, deferred receivables,
advances to suppliers of capital goods and contractors, non- consumable stores
and spares, security deposit etc..
Intangible Assets: These are assets of value to the business, but are not of a tangible
nature. They are non-physical assets having quite a long period of usefulness in the
business. It Includes a) Goodwill b) Patents & Trade Marks c) Copyrights d) Preliminary
& other formation expenses e) Development Expenses f) Deferred Revenue
Expenditure g) Bad & Doubtful Debts h) Carried forward loss etc.
• Debt equity Ratio: The total outside liabilities of the firm is divided by the Net worth
to compute this ratio. Again Net worth is calculated by Capital + Free Reserve –
intangible asset. In that sense, bankers do not take into account the intangible asset.
For us, capital means Capital minus intangible asset and we call it as Net Worth. An
acceptable ratio is maximum 3:1 as per Industry Norms. However, our bank accepts
it at 4.00. The main purpose of this ratio is to ascertain the relative financial stakes of
the creditor’s vis-à-vis the owners of an enterprises.
• Debt Service Coverage Ratio: This is calculated to assess the repayment capacity
of the unit out of the internal income generation. It is calculated at the time of
sanctioning a Term loan. It should be calculated for all the years till repayment. It
is calculated as the cash profit generated plus provision for interest divided by total
payment commitment. It is worked out as
(NET PROFIT + DEPRECIATION + INTEREST ON TERM LOAN) DIVIDED BY
(INTEREST ON TERM LOAN + INSTALMENT). Higher ratio represents higher
repayment Capacity.
• Interest Service Coverage Ratio (ISCR) : (PAT +Depreciation+ Interest)/ Interest.
• Net Profit/Sales%: This is computed as: Net profit / Sales*100. It shows the relation
between the final profits of the company to sales.
• Activity Ratios :
a) Inventory Turnover Ratio = Sales/ Avg. Stock ,
b) Debtor Turnover = Sale / Avg. Debtor ,
c) Debtor Velocity =Avg. Debtor / sales *12 or 365,
d) Creditor Velocity =Avg. Creditor / Purchases *12 or 365,
e) Raw Material Holding
= Stock of Raw material/ Raw Material Consumed* 12 or 365,
f) Stock In process holding = Stock of stock in process/Cost of Production*12.
Earnings
Net operating profit-Operating profit before provision minus provision for loan losses,
depreciation in investments, write off and other provisions.
Profit after tax (PAT)- Profit before tax – provision for tax.
Return on equity (ROE) - After Tax-Return on Equity (ROE) is a ratio relating net
profit (net income) to shareholders’ equity. Here the equity refers to share capital
reserves and surplus of the bank. Formula- Profit after tax/(Total equity + Total equity
at the end of previous year)/2}*100.
CIBIL Reports- If many enquiries are present in the report, the borrower may be
credit hungry, trying to obtain loan from other banks. Also take individual reports
of the directors and also group concerns to ensure that they do not have abnormal
debts and this company has not guaranteed the debts of such group
company.
Income Tax/Wealth Tax Returns- Fake income tax return frauds are on the
increase. Verification of the tax return is of utmost importance. Along with
acknowledgement, ask for tax paid challan and this can be verified online from
the site www.tin.tin.nsdl.com. Input challan identification number, BSR code of
bank/branch where tax remitted, amount and date. The online details should
match with what you have fed. In case of error it is sure that the challan is not
genuine. Also ask the borrower to generate his 26Q from the system on your
presence which should tally with what he has submitted. In case of audited
balance sheet ascertain the genuineness from the CA who audited the same.
Corrective Action Plan-The medicine depends upon the malady diagnosed. This
may include the following depending upon type of problem.
Holding on operations in the account for temporary aberration
Giving moratorium for repayment (delay in project implementation)
Rescheduling of instalments (ballooning repayment/postponement of
repayment)
Infusion of fresh capital by the Borrower
Converting pre sale (stock) finance to post sale (bills/book debts)
Considering additional long term loan
Restructuring of loans etc.
Special Mention Accounts (SMA)
RBI has come out with a frame work to identify early the distress in borrowal
accounts so that corrective action can be put in place before it is too late. The
classification of a borrowal account will be as follows:
SMA 0 – Where interest/principal are not overdue for more than 30 days
but showing signs of incipient sickness
SMA 1- Where interest /principal payment is overdue in between 31 to 60
days
SMA 2- Where principal/interest payment is more than 60 days but not more
than 90 days.
SASCL means System Asset Classification List NPA are marked through the
system. DC generates SASCL reports of the accounts which are likely to
become NPA on a particular date.
Overdue up to 90 days
In sufficient Credit
No Credit
Review Expired
Stock Expired
Percolation
If any condition could not be complied with, Brach should take approval for the
deviation from the Authority.
CPA
Scope of Coverage : FB and NFB limit of Rs. 50.00 Lakhs and above for new/
additional.
CPA For Retail Loans: CPA-I & II is to be carried out for proposals under Star Loan
against Property Scheme with limits of Rs.5O lacs & above and Star Home Loan
Scheme with limits of Rs 5OO Lakhs & above.
CPA for TDR loan: will hereafter be applicable to all loan against TDRs with limits
of Rs.5 crores and above of non-individuals such as Corporates, Societies,
Government Departments (irrespective of whether the deposits are in the name
of the borrower or third parties)..
Check List as per Branch Circular 98/12 dated 16.04.2004, 98/186 dated. 04-
12-2004 should be prepared.
The check list should be kept along with other security documents.
Zonal Manager may reduce this CPA threshold limit at below Rs 50 Lakhs, as
he deems fit, considering the overall Credit Portfolio of the Zone and risk
perception in terms of compliance of Pre disbursement sanctioned terms.
CREDIT PROCESS AUDIT Audit was introduced in April,1999. The objective of CPA
is to ensure that the disbursing officer, before parting with the Bank's funds,
has taken all necessary measures for creation of security and compliance of pre
disbursement terms of sanction-:-. Further, the purpose of CPA is to ensure
verification of compliance of pre-disbursement terms of sanction by an independent
officer, not connected with the sanction/disbursement who is expected to point out
deficiencies, if any, in compliance at right time so that corrective measures can be
taken immediately to avoid possible damage
CPA 3 :-
To take care of compliance of post disbursement conditions.
Standard Account with limit of Rs 5.00 Crores and above( including NPA -
Restructured account) new review sanction. This would cover overseas
accounts also with threshold limit of USD 1 Million and above and its
equivalent.
A) Covering new or review sanctions have been made during the quarter.
Limits disbursed where post disbursement conditions are stipulated and not
Complied, Credit In charge and Branch Manager jointly responsible to ensure
compliance of post disbursement terms.
MSOD/QIS
Stock statement is applicable to all Cash Credit Limit
MSOD is monthly Select Operational Data: Applicable for Limits of Rs 10
Lakhs and above
QIS stands for Quarterly Information System is applicable to limits of Rs 1.00
Crore and above
QIS I: Estimate for Quarter to be submitted in the week preceding the
commencement of the quarter
QIS II: Actual for the Quarter ended to be submitted within six weeks
for the close of Quarter.
QIS III: actual for Half Year and to be submitted within two months from
the close of the quarter.
IRAC norms were introduced by Narasimhan Committee in 1991 and made
applicable from 1993. Asset Classification is based on record of recovery and
not based on value of securities, worth of borrowers/guarantors.
I. Red Flagging of Accounts:
Presently. Branches reporting to ZO/NBG. With sanction limits Rs.50 crore and
above, the delegation of Red Flagging/Fraud examination of account is assigned
to HO FMG (Fraud Monitoring Group), while with sanction limits less than Rs.50crore
to FMG-NBG. However, in case of LCBs irrespective of amount the RFA approval is
done at HO-FMG.
As per RBI directives, Bank should act prudently and initiate appropriate steps
and complete the process of RFA/Fraud declaration within 180 days of first date of
RFA by any Bank in consortium and our Banks policy is in tune with the same.
However, as per DFS instructions (EASE compliance) the said procedures are to be
completed within 120 days.
II. FRAUD EXAMINATION
Once an account is Red flagged by HO-FMG or of NBG-FMG as the case may be in
respect Consortium accounts where our Bank is Leader of the consortium (or) sole
Banker, Forensic Auditor should be appointed by NBG in respect of Branches falling
under their control and DGM-Large Corporate for their respective Branches within 5
days of receipt of approved RFA memorandum by them from HO or NBG as the
case may be. Thereafter the audit firm assigned the Job of carrying out Forensic
Audit should complete the audit and submit the final report within a period of 90 days
from the date of allotment of Forensic Audit. The completion of audit within 90 days
of allotment should be a term of scope of audit and mentioned invariably in the
allotment letter. Thus a final decision on classification of the account as fraud or
Project Loans-
• Project loan for non-infra project will become NPA if it fails to commence commercial
production within 12 months of original DCCO (date of commencement of commercial
operations) or COD commercial operation date, unless it is restructured and fresh
DCCO is fixed which should not extend beyond 24 months of original DCCO.
• In case of Infra projects if the project fails to commence commercial operation within
2 years of original DCCO unless it is restructured and DCCO extended as follows:
▪ Project involving court cases another 2 years (total 4 years from original DCCO)
▪ In other cases for reasons beyond the control of promoters another 1 year
(Total 3 years from original DCCO). Mere extension of DCCO will also be
treated as restructuring if the fresh DCCO goes beyond the periods above.
• As per RBI guidelines w.e.f. 01.04.2015 asset classification in respect of restructured
advances, except change in DCCO in cases of infra and noninfra Project loans, cannot
be continued as standard and should be treated as NPA and provided for accordingly.
NPA Management Policy.
• All watch category accounts (30 to 90 days delinquency) appear in “SASCL”
report (System Asset Classification List). This should be followed up for recovery of
entire overdue. If record day is fast approaching and for some reasons, unable to
recover full overdue then at least minimum critical amount should be recovered to
avoid slippage during the record date like 31st march etc.This should be exception
rather than rule. This is Critical Amount Recovery Exercise) CARE.
• Once the account becomes NPA immediate action should be taken to recover the
amount by issuing SARFAESI notice wherever eligible.
Eligible accounts under SARFAESI –
Lok Adalat: Lok Adalat means ‘Peoples’ Court’. Power derived from Legal Services
Authorities Act 1987. There is no court fee payable when a matter is filed in a Lok
Adalat. It is an alternative dispute resolution mechanism. Generally compromise/avoid
legal procedures i.e. without going to court. Maximum amount
- Rs.20.00 lakhs. Suite filed cases, RC cases & pre litigation cases with consent of the
concerned District legal authorities can be heard. Lok Adalats are arranged by State
Authority, District Authority, Supreme Court Legal Services Committee, High Court
Legal Services Committee, and Taluka Legal Services Committee. Lok Adalat is
Presided over by retired judges, social activists, or other members of the legal
profession. The focus in Lok Adalats is on compromise. Award is made and is binding
on the parties. It is enforced as a decree of a civil court.
Reschedulement & Restructuring: Reschedulement is resorted to in cases where
borrower is unable to repay the loan as per original terms & conditions owing to
changes in the circumstances impacting cash flow in the business and his ability to
pay. Reschedulement implies extension of the repayment period of the loan or re-
phasing the periodicity of loan instalments. e.g. Instalment rephased from Monthly to
Quarterly. Reschedulement is resorted to in cases where borrower is unable to repay
the loan as per schedule. Reschedulement is resorted to because default would hurt
both the Borrower and the Bank. Restructuring implies altering the terms & conditions
of the loan so as to make it more favourable to the Borrower.
Examples of Restructuring are:-
b) After commencement of commercial production / operation but before the asset has
been classified as 'sub-standard'.
c) After commencement of commercial production / operation and the asset has been
classified as 'sub-standard' or 'doubtful'.
a. Any legal dispute due from other would be at the risk and responsibility of the
Borrower and the Company and Promoters has to undertake that the Bank has no
liability with regards to any dispute/ claims/ injunction etc.
b. In future, if any fraud is found, the same will be dealt with as per Bank's policy.
c. The name of Borrower / Company / firm will continue to appear in CIBIL records as
"Account closed under compromise / settled.
NCLT having replaced company law board, is the only tribunal for arbitrating
Company disputes
Authorised Officers under IBC:
Assistant General Managers and Deputy General Managers to sign \ execute
Applications, Appeals, Vakalatnama, before NCLTs, NCLATs, High Court, and
Supreme Court under IBC 2016. All other ancillary Pleadings, Miscellaneous
applications, Affidavits, Written statements etc. can be signed \ executed by the
dealing officials of Branch as being the practice in other court cases.
OTS/Release of Security with Companies under Liquidation / Resolution:
Any dealing with any Company under Liquidation / Resolution whether by way of
OTS / Release / dealing with the security etc. can only be done with the permission
of Official Liquidator / Company Court / NCLT.
Filing of FIR during pendency of NCLT proceedings under IBC 2016:
RP / Liquidator during the CIRP / Liquidation proceedings have the obligation to
peruse the transactions of the Corporate Debtor for a period of two years preceding
the date of admission date to unearth transactions having diversion of funds or
undervalued transactions. If lenders have information about such transactions prior
to two years’ period, they may request to extend the scope / period of Forensic Audit
beyond two years.
If the RP gives clean chit to the debtor but the lenders have information / suspicion,
they may get Forensic audit carried out at their own independently.
Notwithstanding any of the above provisions, lenders have to file a complaint / FIR
with the Law enforcing agencies upon detection of any fraud in line with the Master
direction issued by RBI on Frauds.
Regulations for Insolvency Resolution and Bankruptcy Proceedings of
Personal Guarantor/s to Corporate Debtor
Section 60 (1) of the Code provides that the Adjudicating Authority in relation
to insolvency resolution and liquidation for corporate persons including corporate
These Rules provide for the process and forms of making applications for
initiating insolvency resolution and bankruptcy proceedings against personal
guarantor/s to Corporate Debtor (CD), withdrawal of such applications, forms
for public notice for inviting claims from the creditors etc.
The Insolvency and Bankruptcy Board of India (IBBI) notified the following
Regulations dated: 20.11.2019:-
A. The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process
for Personal Guarantors to Corporate Debtors) Regulations, 2019, specifying the
details of the insolvency resolution process for personal guarantor/s to Corporate
Debtor (CD), inter-alia, including:
1. Eligibility to act as a resolution professional for an insolvency resolution process;
2. Manner of receipt and verification of claims of creditors;
3. Manner of preparation of list of creditors, holding the meetings of the creditors and
voting in the meeting;
4. Contents of the repayment plan; and
5. Procedure of filing of an application for issuance of discharge order, etc.
B. The Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal
Guarantors to Corporate Debtors) Regulations, 2019 specifying the details of the
bankruptcy process for personal guarantor/s to CD inter-alia, including:
1) Eligibility to act as a bankruptcy trustee for the bankruptcy process;
2) Manner of preparation of reports and timeline for submission by the bankruptcy.
3) Manner of collating claims and formation of committee of creditors, holding
meetings of the committee and voting in the meeting; and
4) Manner of realisation of assets of the bankrupt and its distribution, etc.
These Regulations came into force on 1st December, 2019. They are available at
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Non-Residents A/Cs
•As per FEMA, a person who has gone out of India for business or vocation
or any other purpose indicating an indefinite period of stay there is NRI
• A person who is a foreign resident but held a Indian passport any
time/whose parents or grandparents were citizens of India/ foreigner spouse
of an Indian citizen, is a PIO.(Citizens of Countries other than Pakistan,
Bangladesh)
• NRI/PIO can open NRO, NRE, FCNR accounts and make permissible
investments.
• NRIs when they return to India for good become resident Indians and can
open, like ordinary residents, resident accounts including resident foreign
currency accounts such as RFC, RFC (D) accounts.
NRO A/CS
➢ Ordinary S/B is converted to NRO on a resident becoming NRI. Jointly with
non-residents. Can be opened jointly with resident on F or S basis. A/C
balance is partially repatriable with a limit of USD 1 Million per financial year.
➢ TDS applicable on Interest
paid.
➢ Opening of and operations on the accounts of individuals/entities of
Pakistani nationality/ownership and entities of Bangladesh
nationality/ownership require prior approval of Reserve Bank.
NRE A/CS:
• NRI or PIO can open this a/c
• Jointly with NRI/resident close relative (As per Company Law 2013) only on
Former or Survivor basis Fully repatriable.
• Exempted from TDS
FCNR A/CS
Important Organisations
FEMA 1999
Inward Remittances:
By DD, SWIFT, Travellers Cheque, Personal Cheques,
In INR/Foreign Currency
To confirm credit in Nostro / Vostro Account
No ceiling on amount
Purpose letter from Beneficiary/Remitter o FIRC
Outward Remittances:
As per FEMA, funds can be released for schedule II & III
transactions subject to compliance of terms & conditions.
A resident can remit up to USD 2.5 lakh per financial year for
any permitted capital a/c or current a/c transaction or a
combination of both under Liberalized Remittance Scheme
(LRS). As per new provision (budget of 2020-21), if amount to
be remitted is Rs.7lacs and above, tax to be collected at source
by the AD branch @5% for PAN holder (It is 10% for non-PAN
holder but in LRS PAN is mandatory). If remittance is out of loan
for education purpose, TCS to be collected @0.5%. Tax is not
required to be collected at remittance is for purchasing tour
package programme.
CDF form to be submitted if surrender of currency is of value
USD
5000 & above/currency & T/C is USD 10000
bove.
ICC /ATM/DEBIT cards can be used to the extent of prescribed limits
INR up to Rs.25000 can be taken from /brought in India
Exports
Documents submission within 21 days of shipment
Realisation period: maximum within 9 months from date of shipment for all
exporters including Units in SEZs (Special Economic Zones), Status Holder
Exporters, EOUs(Export Oriented Units) , Units in EHTPs (Electronic
Hardware Technology Park), STPs (Software Technology Park) & BTPs
(Bagmane Technology Park) until further notice. (However, as a special Covid
19 relief measure, time limit for realization was increased to 15 months for
goods exported upto July 31, 2020).
Goods exported to a warehouse established outside India: As soon as it is
realized and in any case within fifteen months from the date of shipment of
goods.
For delay in realization, extension to RBI has to be applied in form ETX.
For reduction in invoice value, change of buyer etc .to be applied to A.D.
EDF (Non EDI Ports)/Shipping bill (EDI ports)/ SOFTEX form used for
exports. SDF discontinued.
Overdue export bills to be reported in EDPMS now.
Self-write off of long overdue bills by exporters/A.D. to the extent
permitted as per RBI guidelines. To be reported to RBI through EDPMS.
Export of INR can be upto Rs. 25,000.00 other than Nepal & Bhutan.
The shipment of goods to be made within one year from the date of receipt of
advance payment
o The rate of interest, if any, payable on the advance payment not to
exceed LIBOR + 100 basis points
o The documents covering the shipment are routed through the same
A.D
Pre-Shipment Credit
Post Shipment
Credit
Imports
Letter of Credit
Letter of Credit means: the arrangement under which a Bank, on behalf of the
Buyer (Importer) undertakes the payment obligation, subject to fulfilment of
certain documentary conditions by the seller (Exporter).
Requirements:-
Importer Exporter - Code (IEC) - unless exempted
Import License - For Restricted Category Goods
Country of Export - Not banned /Politically stable
Commodity under permissible category.
LC to be opened in terms of UCP (Presently Version 600) provision.
Import License to be endorsed - Exchange Control Copy.
Margin, if any, stipulated - obtained.
Importer to be advised to cover exchange Risk.
Basis of opening LC:-
Underlying Sale Contract or
Purchase Order, confirmed by the Supplier
Performa Invoice from Supplier duly accepted by the Importer
Indent or offer from Overseas Supplier or by his Authorised Agent.
Parties to LC
Applicant / Buyer.
Beneficiary / Seller.
Opening / Issuing Bank.
Advising Bank. – Bank through which LC advised
Confirming Bank. - In case exporter is not confident with LC opening
bank he will ask importer to get LC confirmed by a Prime Bank. The
liability of the accepting bank is tantamount to that of opening bank.
Negotiating Bank.- The bank which negotiates the bill under LC
Reimbursing Bank- As per terms of LC the bank from whom
negotiating bank should claim reimbursement of amount under LC
Payment of bill under L/C:
Sight Bill: Within 10 days
Usance Bill: On Due Date
Rate Applicable: The Bills Selling Rate on the date of payment or Forward
Contract Rate if F.C.is booked
There may be instances where the customer has given a mandate for crediting the
interest on term deposit account and / or crediting dividend on shares to the savings
bank account and there are no other operations in the savings b ank account. Since
the interest on term deposit account and / or dividend on shares is credited to the
savings bank accounts as per the mandate of the customer, the same shall be treated
as a customer induced transaction. As such, the account should be treated as
operative account as long as the interest on term deposit account and /or dividend on
shares is credited to the savings bank account. The savings bank account can be
treated as inoperative account only after two years from the date of the last credit entry
of the interest on term deposit account.
Interest on savings bank accounts shall be credited on regular basis whether the
account is operative or not. If a Term Deposit Receipt matures and proceeds are
unpaid, the amount left unclaimed with the bank will attract savings bank rate of interest
if auto renewal facility at the time of placing the deposit was specifically refused by the
customer.
Charges for Account activation and penal charges for non-maintenance of minimum
balances are not applicable in inoperative / dormant accounts.
The credit balances of following accounts (including customer accounts) shall be credited
/ transferred to the fund -
Saving Bank Deposit Accounts;
Fixed Or Term Deposit Accounts;
Recurring Deposit Accounts;
Current Deposit accounts;
Other Deposit Accounts in any form or with any name;
Cash Credit Accounts;
Loan accounts after appropriation by the banks;
Margin money against issue of Letter of Credit / Guarantee etc., or any Security
deposit;
Outstanding telegraphic transfers, mail transfers, demand drafts, pay Orders,
banker cheques, sundry deposit accounts, Vostro accounts, interbank Clearing
adjustments, unadjusted National Electronic Funds Transfer(NEFT) credit
balances and other such transitory accounts, Unreconciled credit balances on
account of Automated teller Machine (ATM) transactions, etc.;
Undrawn balance amounts remaining in any prepaid card issued by banks, But
not amounts outstanding against travellers cheques or other similar Instruments,
which have no maturity period;
Rupee proceeds of foreign currency deposits held by banks after conversion of
foreign currency to rupees in accordance with extant foreign exchange
Regulations;
Such other amounts as may be specified by the reserve Bank from time to time.
Bank shall display the name and address of account holders of unclaimed deposit
accounts, which are inactive / inoperative for ten years or more on Bank's Website
with find option. In case such accounts are not in the name of individuals, the name of
individuals authorized to operate the accounts should be indicated. Bank shall also
display the information on the process of claiming the unclaimed deposit/ activating
the inoperative account and necessary forms and documents for claiming the same
on the Bank's Website.
The eligibility of additional Rate of Interest on and above card rates for the Rupee
Term Deposits is as below –
Note : The eligibility of 1% additional Rate of Interest on and above card is also
available in saving accounts.
The Bank may at its discretion open deposit accounts other than CD accounts of
illiterate persons. The Account of such a person may be opened provided he/she calls
on the Bank personally along with a witness who is known to both the depositor and
the Bank. Normally, no cheque book facility is provided for such SB accounts. At the
time of withdrawal, repayment of deposit amount and/or interest, the Account holder
should affix his/her thumb impression or mark in the presence of the authorized officer
of the branch who should verify the identity of the person. The Bank will explain the
need for proper care and safe keeping of the passbook etc. given to the account
Holder. The Bank official shall explain the terms and conditions governing the
account to the illiterate person in the language known to the customer.
Bank will facilitate opening of Saving Bank accounts as well as Term Deposit
accounts of persons with visual impairment. The account may be opened in his/ her
sole name or jointly with other person(s). The account of such person may be opened
provided he/she calls on the Bank personally along with a witness who is known to
both the depositor and the Bank.
Bank is committed in providing technology enabled banking facilities like ATM &
Internet banking which will enable the visually challenged persons to operate his/her
own account. The Bank official shall explain the terms and conditions governing the
account to the visually challenged persons in the language known to the customer.
All the banking facilities such as cheque book facility including third party cheques,
ATM facility, Net banking facility, locker facility, retail loans, credit cards etc., may
invariably be offered to the visually challenged without any discrimination.
ACCOUNTS OF MINORS
Savings bank and term deposits can also be opened in the name of persons with
autism, cerebral palsy, mental retardation and multiple disabilities by the legal
guardian appointed by the District Court under Mental Health Act, 1987 or by the
Local Level Committees set up under the National Trust for welfare of persons with
autism, cerebral palsy, mental retardation and multiple disabilities under Disabilities
Act, 1999. Legal guardian, so appointed, will furnish an indemnity- cum-undertaking
bond duly stamped as per the local law in force along with Guardianship Certificate.
The Bank will accept Stop Payment instructions from the depositors in respect of
Cheques issued/reported lost and not paid till receipt of stop payment instructions.
Charges, as specified, will be recovered.
• Payment against withdrawal slip is allowed for account without cheque book facility.
• Withdrawal slip when presented for payment by customer must accompany the
relative saving bank pass book.
• Third party cash withdrawals in Saving Bank accounts are not allowed by withdrawals
slip, even if they are accompanied by passbooks.
• Payments against withdrawal slips in accounts without cheque books are not allowed
at non-home branches even if the customer himself presents the passbook and the
withdrawals slip for payment.
• The visual impaired / Illiterate person should personally present himself/ herself before
the branch official who will facilitate filling up the withdrawal slips.
• The natural guardian or by the guardian appointed by the court for Minor can withdraw
money against withdrawal form. However, if a withdrawal form signed by natural
guardian / guardian appointed by court is presented for payment after the date on
which the minor has become major, the erstwhile minor must be contacted and his
instructions sought. If he can't not be contacted, the withdrawal form should be
returned with the answer "Mr./Miss (the erstwhile minor name) has since attained
majority.
• In cases of sick/ old/ incapacitated account holders, who are too ill to sign a cheque
/withdrawal slip and cannot be physically present in the Branch a mark can be obtained
on the cheque/withdrawal form which should be identified by two independent
witnesses, one of whom should be a responsible bank official. This mark can be placed
by the person in any manner. The person who would be actually drawing the money
from the Branch should be asked to furnish his/her identity by way of KYC documents
and signature to the Branch.
• In cases of sick/ old/ incapacitated account holders, who are too ill to sign a cheque
/withdrawal slip and cannot be physically present in the Branch following precautions
should be taken to avert perpetration of frauds or misappropriation of funds in such
accounts,-
I. A remark /note should be made in bold letters on the specimen signature cardand in
the CBS system that the account is of an incapacitated person.
II. As far as possible the account holder should be asked to have a joint account with
close relation and make a nomination in the account.
III. If the old/sick/incapacitated person is not willing to open and operate a joint account,
he/she should be convinced to give Power of Attorney/Mandate for operating the
account. The Power of Attorney or Mandate should be carefully
examined and noted in relevant branch records.
Term Deposits
• Recurring Deposit (RD)
• Short Deposit (SDR)
• Monthly/Quarterly Interest Certificate (MIC/QIC)
• Double Benefit Deposit (DBD)
• Other Fixed Deposits
CASA
• CASA stands for Current Account and Savings Account.
• CASA deposit is the amount of money that gets deposited in the current and savings
accounts of bank customers. It is the cheapest and major source of funds for banks.
• CASA ratio is the proportion of current account and savings account deposits in
the total deposits of the bank. A low CASA ratio means the bank relies heavily on
costlier wholesale funding.
• Net Interest Income (NII) is the difference between the income a bank earns from
its lending activities and the interest it pays to depositors.
• Net interest margin (NIM) is a measurement comparing the net interest income
earned from credit products like loans and interest it paid on savings and deposit
accounts
• NIM or net interest margin is calculated by dividing NII by the average interest-
earning assets.
Net Interest Margin = NII / Average interest-earning assets
The Rate of interest on Domestic as well as on NRI / NRO Saving Bank deposits w.e.f.
01.05.2022 is as under-
Savings Bank Accounts can be opened for eligible person/persons and certain
organizations / agencies (as approved by RBI, from time to time).
In terms of the Reserve Bank of India directive, savings bank accounts opened
in the name of any trading or business concern, whether such concern is a
proprietary or a partnership firm, a company or an association, would not be
eligible for any interest. The Reserve Bank of India, however, has exempted
certain agencies/institutions from this prohibition on account of the socially
desirable purpose of their activities aiming to serve the weaker sections
of society.
Accordingly, the following institutions/organizations are eligible for earning
interest on their savings bank accounts on the usual terms:
Although the activities of the institutions of this type are of developmental nature, these
organizations are not specifically serving any economically weaker/ underprivileged
sections of the society, and as such they do not qualify for exemption under the Reserve
Bank of India directive.
Scheme Code and Special Charge Code are essential for identification of the
account and their category and also for the extension of benefits to the depositor.
The Insurance cover would be strictly based on the product codes extended to the
first account holder only. Salary accounts where salary is not credited for a period
of 6 Consecutive months will be treated as regular Savings Bank Accounts, as the
Insurance cover and other benefits would not be available to them. Dormant alary
Accounts holders shall also be excluded from getting the various benefits.
• All existing employees of All existing permanent employees of the Central Police
Organisations (other than Central Para Military Forces), Civil Police, home guards,
Traffic Police and Reserve Police of all States, Police Forces of The Union
Territories (Under The Control Of The Central Government), Railway Protection
Force (RPF) (under the Ministry of Railways, Central Government) and Government
Railway Police (GRP) — (part of State Police Force)
• For existing customers of above category, acceptance letter should be
obtained to change their scheme code to BOI Rakshak Salary Scheme.
• All feature of Star BOI Salary Plus & Scheme Code: 164
.
BOI STAR SENIOR CITIZEN SAVINGS BANK ACCCOUNT
• Eligibility- all citizens of 57 years of age and above & all senior citizens
drawing pension from other bank.
• AQB of Rs.10,000.00
Category A
• Age 10 – 18 years
• Target group – students
• AQB – Nil
• Transaction limit – total debit Rs.2 lac every financial year
• Cheque book – free 25 leaves
• Discounted health check-up through partnerships.
• Incentives for using alternate delivery channel
Category B
• Age 18 – 35 years
• Target group – students, professionals without dependents, professionals with
dependents.
• AQB –for students up to 21 years - nil,.
• AQB- for age group 21 – 35 years – Rs.5000.00 in metro/urban & Rs. 2500.00
in semi urban/rural branches .
• Incentives for using alternate delivery channel.
• Cheque book – free 50 leaves
• Debit card – Bingo and other Debit Cards as per eligibility norms
• Discounted health check-up through partnerships
• Free personal accidental insurance cover (death benefits) of Rs.50,000.00 for
age group of 18-21 years and after 21 years group personal accidental death
insurance cover of Rs. 5 lakhs on debit card activated by single POS Swipe,
this clause applies to every financial year.
• It aims at Maximizing the earning for the customer without jeopardizing liquidity.
• Mixture of Savings and Term Deposit. AS per HO BC 112/123 dated 12.11.2018
Minimum base amount in SB Plus account was Rs. 50,000.00 and sweep in / out
amount in TDR was in multiples of Rs.10,000.00, Maximum tenure of TDR was
120 months.This scheme has been modified w.e.f. 01.12.2021 (HOBC 115/240
dated 30.11.2021) .The threshold in the base account of Savings Plus Scheme
has been enhanced to Rs. 1 Lakh, Sweep in /out amount will be in multiples of
Rs.25,000.00 and maximum tenure of TDR is allowed up to 364 days. The
accounts, till the date of implementa tion shall follow the existing guidelines and
from 01/12/2021, the account will automatically be migrated to new stipulations
and the system shall automatically sweep in the balance amount to meet the
new threshold. The facility of Sweep In/Sweep Out in the accounts shall
continue. The complete deposit shall not be broken, only the amount equivalent
to meet the new threshold shall be swept in . Since the threshold in the base
account of Savings Plus Scheme has been enhanced to Rs.1 Lakh, these
accounts are automatically flagged as Diamond accounts and all benefits of
SB Diamond account scheme shall also be available to these accounts.
• In case the customer does not wish to continue with the same after
implementation of modified scheme, the customer c an submit an application to
this effect to his home branch and the account will be converted to Normal
Account without the Sweep In/Sweep Out facility.
• The tierisation of saving bank account is based on Average Quarterly Balance (AQB).
The portfolio is segmented into Basic, Silver, Gold and Diamond accounts, based
on theaverage quarterly balances (AQB) maintained in individual account.
• A Basic SB account is one, where AQB up to Rs.5,000/- is maintained.
• A Silver SB account is one, where AQB between Rs.5, 000/- to Rs.25,000/- is
maintained.
• A Gold SB account is one, where AQB is between Rs.25, 000/- to Rs.1 lakh. A Diamond
SB account is where AQB is more than Rs.1 lakh.
Purpose – One time lump sum amount as decided by the court/ tribunal, deposited to
receive in EMIs comprising of principal and interest.
1) Eligibility – Individuals including minors through guardian.
2) Mode – Singly
3) Type of Account – Motor Accident Claims Annuity Deposit Account (MACAD)
4) Amount – Based on monthly annuity of Rs.1000.00 for relevant period.
5) Period – 36 to 120 months
6) If period <36, then FD only. If 120< then by court order
7) Rate of interest – as per prevailing rate.
8) Nomination – Available, as per court directive.
9) Receipts/advice – No receipt. Passbook only.
10) Loan facility – not available.
11) Premature Payment– as per court order. No penalty. Nominee has option to
continue with annuity.
12) Tax – TDS on interest portion as per I-tax rules.
Note : In all Saving Bank accounts , it should be ensured that the balance in the
account does not turn into negative balance solely on account of levy of charges of
minimum balace. In such cases charges not debited due to non-availability of sufficient
credit balance should be accumulated separately by system ( Maximum up to 2
quarters).and it should be debited whenever the account comes in to credit balance.
CURRENT DEPOSIT
Branches do not open Current Accounts of entities which enjoy credit facilities (fund
based or non-fund based) from the banking system without specifically obtaining
No-Objection Certificate from the lending Bank(s). RBI has advised banks to
examine and refer Central Repository of information on Large Credits (CRILC)
data and undertake extra due diligence before opening Current Accounts of entities.
II. If the prospective entity is enjoying credit facility(ies) of Rs. five crore and
above with other banks than Branch will submit the details of such entity to
Zonal office and Zonal Office will access the CRILC database and thereafter
share the details with Branch. Zonal Office shall submit request for NOC/
Permission from other Bank(s) via emails through the nodal officer(s) . Lead
Bank in case of Consortium Account and all Banks where multiple Banking/
Sole Banking arrangement are in place. On receipt of NOC/ permission as per
requirement branch can open the current account of such entity after
complying with KYC and due diligence guidelines.III. If the prospective
customer declares no credit facility from other Bank, then branch may open
the current account after complying with the extant KYC and due diligence
guidelines.
The tierised current accounts are opened under following schemes codes. The following
three scheme codes constitute more than 98% of the current deposit portfolio.
SR. No. Name of the Product Scheme Code
1 Current Account - General CD-201
2 Current – Collection Account CD-209
3 Current Account - Institutional CD-211
The account was launched on Bank's foundation day in the year 2010 vide Branch
Circular No. 104/72 dated 08.09.2010 to cater to the needs of small
traders/manufacturers. The features of Star Benefit CD Plus account is as under:-
Note: - Star Benefit CD Plus Current A/c is a part of the existing Current Deposits
(Scheme Code — CD201). To allow benefit of Star Benefit CD Plus Account while
opening the Account through OAAC / HOAAC menu option user has to select "CDP"
in Special Charge code field.
It was launched by the Bank in the year 2012 for Diamond Traders vide Branch Circular
Letter No. 2012-13/179 dated 17.10.2012. Features Benefits. Star Crystal Current
Account along with Star Ratnakar Bachat Salary account was introduced at a few
Branches in NBG (West 1) and NBG (Central) viz. Bullion Exchange, Opera House,
Bharat Diamond Bourse, Ahmedabad, Bhavnagar, Jamnagar, Pithampur Industrial
Estate and Surat where there was concentration of Diamond trade, Diamond cutting
& Diamond polishing for Diamond traders and their employees.
• Average Quarterly Balance Rs.5,000.00 per quarter
• Free DD/PSI / RTGS /NEFT through branch up to Rs.5.00 Lac each per month.
• Debit Card for individuals & Proprietorship concerns Free for First year.Prevailing
AMC charges from 2nd year onwards.
• Cheque Book- 100 Leave Free per annum
• SMS/Tele/Internet Banking Free.
• Remittance of funds (NEFT/RTGS) through net banking Free.
• Penal charges on account of non-maintenance of stipulated AQB.
• The accounts under the said scheme shall not be available for tierisation.
• Star Crystal Current A/c is a part of the existing Current Deposits (Scheme Code—
CD201).
• To allow benefit of Star Crystal Current Account while opening the Account through
OAAC / HOAAC menu option user has to select "CRYST" in Special Charge code field.
This product is a combination of Term Deposits and Current Deposit with very attractive
features and incentives for the Customers. The product would maximize the returns for
the customers on their short-term funds which otherwise would not earn any interest in
the Current Deposit Account.
This scheme has been modified w.e.f. 01.12.2021 (HOBC 115/240 dated 30.11.2021)
.The threshold in the base account of CD Plus Scheme has been enhanced to Rs.
5.00 Lakh, Sweep in /out amount will be in multiples of Rs.1.00 lacs and maximum
tenure of SDR is allowed up to 90 days. The accounts, till the date of implementation
shall follow the existing guidelines and from 01/12/2021, the account will automatically
be migrated to new stipulations and the system shall automatically sweep in the balance
amount to meet the new threshold. The facility of Sweep In/Sweep Out in the
accounts shall continue. The complete deposit shall not be broken, only the amount
equivalent to meet the new threshold shall be swept in . Since the threshold in the base
account of Savings Plus Scheme has been enhanced to Rs. 5.00 Lakh, these accounts
are automatically flagged as Diamond accounts and all benefits of CD Diamond account
scheme shall also be available to these accounts. In case the customer does not wish
to continue with the same after implementation of modified scheme, the customer can
submit an application to this effect to his home branch and the account will be converted
to Normal Account without the Sweep In/Sweep Out facility.
The NRI customers can open Current Account with any of our BOI branch. The
scheme code for Current — Deposits (NRO) is CD 205 and the scheme code for
Current — Deposit (NRE) is CD 206.
A Deposit held at a Bank that has a fixed term. Term Deposit is an extremely
safe investment and is therefore very appealing to conservative low risk
investors. Term Deposit accounts may be opened in the names of :
The Bank has statutory obligations to deduct tax at source if the total interest
Paid / payable on all Term Deposits held by a person during a financial year
exceeds the amount specified under the Income Tax Act. The customer may give
instructions to deduct TDS payable on the deposit, from operative account linked
to the Term Deposit account; otherwise the amount of tax would be deducted
from interest payable on term deposits and the maturity proceeds of the deposits
will be lower than that mentioned on Term Deposit receipt. The Bank will issue
a Tax Deduction Certificate (TDS) for the amount of tax deducted. The
depositor, if entitled for exemption from TDS can submit declaration in the
• Short Deposit
• Fixed Deposit
• Monthly Deposit / Quarterly Deposit
• Double Benefit Deposit
• Recurring Deposit
• Flexi RD.
• Term deposit for NRI customers.
SHORT DEPOSIT
▪ Period ranges from 6 months to 120 months (beyond 120 months allowed
in case of minor or on having court order)
▪ ROI quarterly compounded payable half yearly in September and March
/or at renewal/closure.
• Minimum amount -10000 in Metro/Urban, 5000 in Rural/Semi Urban, 5000
for Senior Citizen
▪ Minimum amount not applicable in-
i) Automatic Renewal
ii) Staff accounts
iii) Subsidy kept under Government sponsored schemes, Margin
Money Deposits, Earnest Money Deposits and Court attached /ordered
deposits.
• Principal along with compounded interest is payable on maturity / closure renewal.
• Premature payment allowed without penalty
• Advance is available
• TDS is applicable as per IT ACT
• Safe investment with fixed and predetermined maturity.
Senior Citizen Saving Scheme 2004 is a Government of India Scheme which is targeted
at senior citizens & retired personnel and it provides high yield and tax benefit under
section 80 C of Income Tax Act, 1961 along with a regular income.
Eligibility: The account can be opened by following individuals:
1. An individual who has attained the age of 60 years & above on the date of opening of
account.
2. On superannuation/voluntary retirement, retired personnel of 55 years & more but less
than 60 years as on date of account opening.
3. Retired Defense personnel above 50 years.
4. HUF & NRI are not eligible to open these accounts.
Joint account with spouse can be opened. While opening the joint account age of first
account holder will be considered for eligibility.
Minimum Rs.1000.00 & thereafter in multiple of Rs.1000.00 and not exceeding
Rs.15,00,000.00.In case multiple SCSS accounts the cumulative deposit including all
accounts should not exceed Rs. fifteen lakhs.
Amount of deposit is restricted to retirement benefits or Rs. fifteen lakhs which ever is
lower.
Rate of interest will be same as applicable on the date of account opening for the entire
tenure of the account till its maturity. Presently, Gol has decided toannounce ROI on
quarterly basis w.e.f 1st April 2016.
Interest shall be paid quarterly in the saving account of the depositor on 1st working
day of April/ July/ October/ January for the quarter ended March/ June/ September/
December.
In case of an account is extended, the account shall earn interest at the rate
applicable to new account opened or to be opened.
In case account is not extended nor closed, post maturity interest will be
applicable as per Post Office Saving Bank interest rate up to the end of the month
preceding the month of closure.
Maturity of the account is after five years from the date of account opening. Account can
be extended for further period of three years within a period of one year from the
maturity period of five year. The extension of the account shall be deemed to have been
made from the date of maturity irrespective of date of application.
50% of FAR/FSI for dwelling units with carpet area of not more
than 60 sq.m., Loan sanctioned by banks for housing projects
exclusively for EWS & LIG under PMAY are covered in PS. Bank
loan to HFCs approved by NHB for refinance for on-lending subjected
to ceiling of Rs.20 lakhs per borrower, Outstanding deposits with
NHB on account of priority sector shortfall are covered in PS.
Agriculture, with its allied sectors, is the largest source of livelihood in India. 70%
of its rural households still depend primarily on agriculture for their livelihood,
with 87% of farmers being small and marginal. The share of agriculture in GOP
increased to 19.9% in 2020-21 from 17.8% in 2019-20. Indian Agriculture has
registered impressive growth over last few decades.
.
Agricultural Finance
FARM CREDIT
Loans to individual farmers such as Crop loan, SHGs, JLGs, Dairy,
Fishery, Animal Husbandry, Poultry, bee keeping, sericulture,
Horticulture etc. Term loan for purchase of agri. Implements,
equipment, irrigation, pre & post harvesting activities,
transportation of farm produce. Loan limit up to ₹75 lakh against
NWRs/eNWRs and up to ₹50 lakh against warehouse receipts other
than NWRs/eNWRs, for a period not exceeding 12 months. Loan to
distressed farmers indebted to non-institutional lenders. Loan to
farmers in Kisan Credit Card Scheme. Loan to small and marginal
farmers for purchase of land for agriculture purpose. Loans to
farmers for installation of stand-alone Solar Agriculture Pumps and
for solarisation of grid connected Agriculture Pumps. Loans to
farmers for installation of solar power plants on barren/fallow land or
in stilt fashion on agriculture land owned by farmer. Loans to
corporate farmers, farmer producer organizations/ companies of
individual farmers, partnership firms and co-op. of farmers directly
engaged in agri. Activities upto a limit of Rs.2 crore per borrower.
Loans up to ₹5 crore per borrowing entity to FPOs/FPCs undertaking
farming with assured marketing of their produce at a pre-determined
price. etc.
Dairy Farming-
Purpose:
• Establishment of Mini dairy unit (with 2 to 4 animals), Small dairy unit ( 6 to
10 animals) Commercial dairy unit ( More than 10 animals)
• Establishment of new medium/large dairy units or expansion of existing units by
experienced, trained/qualified entrepreneurs as a main occupation
• Collection, processing and distribution of milk. Manufacturing of milk products
and other related business.
• Establishment of breeding bull farms, semen banks, artificial insemination
centres, veterinary clinics as custom service units.
The following activities are eligible for finance under dairy schemes:
• Purchase of improved/cross breed milch cattle
• Purchase of breeding bulls in case of large schemes
• Construction of cattle
shed.
The cattle which are in good health need to be selected. Animals should have
low maturity age, long lactation period (i.e. more number of milking days) and high
milk yielding per lactation period.
Other documents such as loan application forms, security aspects, margin
money requirements etc. are also examined. A field visit to the scheme area is
Star Kisan Ghar :- Scheme for financing of farm structures cum dwelling unit
HOBC no. 115/66 Dt. 02.06.2021 & Circular Letter No.:2021-22/27 Dated
22.07.2021
Background
Branches are already granting Farm structures cum dwelling unit loans, as
developmental activities undertaken on the farm.
There is no uniformity amongst various branches.
Agricultural lands are usually situated away from villages/ towns.
There is growing trend amongst farmers to construct farm structure cum
dwelling unit for —
i) Residence
ii) Storing / Sorting of agriculture produce
iii) Cattle Shed
iv) Parking / Store house for farm equipment - implements
v) Grading / Packing Agri. produce.
Objectives
i) To provide finance for construction of new farm structures on agricultural land
owned by the farmer along with storage-cum-godown, parking-cum-garage,
shed for multipurpose use connected to farm activities such as bullock/ cattle
shed, tractor/ truck/ implement shed, packing shed, farm silos and threshing
yard, etc., which serves as dwelling unit with one or more farm structures as
aforesaid.
ii) Renovation/ repairs of existing farm structures cum dwelling units.
Eligibility
Farmers engaged in agricultural activities/allied agricultural activities having
KCC accounts.
Age Limit: Age at loan maturity should not exceed 70 Years.
For applicants above age 55, suitable co-applicant has to be taken considering
age/ succession.
Quantum of Finance
Based on cost of project
a) New farm structures cum dwelling unit: Min. Rs.1.00 lakh & max.Rs.50.00
lakh
b) Renovation & repairs of farm structures cum dwelling unit: Min.Rs.1.00 lakh
& max.Rs.10.00 lakh.
Depending on cost of project & subject to assessment as above
A. Based on income -
(i) Farmers with Income Tax Returns :
Income based on IT Returns Six times of gross annual income based on
income tax returns (last 2-3 years average).
OR
(ii) Farmers without Income Tax Returns:
Delegation
a) Branches will not exercise their delegation.
b) SKVK/ SZLCC to sanction the loans as per their delegation.
Deviations if any, related to age, to be considered at ZLCC.
Farm Mechanization
HOBC no. 115/103 Dt. 28.06.2021 & Circular Letter No.:2021-22/ 74 dated
18.10.2021
Introduction
Farm Mechanization is to use machines (engineering/ technology) to replace
human and animal energy to do a job in a better way.
Objectives of Farm Mechanization is to increase productivity per agriculture
worker and quality of farm work.
Why Farm Mechanization is Critical?
Rural-urban migration
Labor shortages
An aging population remaining in Agri-Sector
Increase in number of mouths to feed
Decrease in number of producer
High Labor cost
Modified Farm Mechanization Scheme covers detailed guidelines related to -
a) Tractor (engine having more than 12 HP power)
b) Power Tiller (engine having power less than 12 HP)
c) Combined Harvester
d) Other farm Machineries
e) Repairing and overhauling of farm machineries.
What’s new -
In this modified scheme, minimum land holding criteria, minimum
implements criteria - relaxed, covering all type of farm machineries
including combined harvesters, pay out to the dealers, security and
margin norms.
Eligibility
Land Tractor Power Combined Other Farm Repair Loan
Tiller Harvester Machinery
Irrigated 2.5 ac or 1 1.5 ac or 6 ac or 2.40 1 ac or 0.40 Land is
ha 0.60 ha ha ha considered
Un- 5 acres 3 acres 12 acres 2 acres as per the
Irrigated or 2 ha. or 1.20 ha. or 4.80 ha. Or 0.80 ha. requirement
of respective
Machinery
Security
For Loans up to Rs.1.60 lakhs & above Rs.1.60 lacs (all loans): -
Primary
i) Hypothecation of primary asset.
ii) Comprehensive insurance of the vehicle with bank clause.
iii) Bank's charge with RTO on implements & machineries wherever applicable
Collateral only for Loans above Rs.1.60 lakhs:-
Mortgage of land or declaration as per Agricultural credit Act. OR
Third party guarantee of individuals having sufficient net worth may be obtained
at the discretion of sanctioning authority.
OR
Liquid security such as TDR /LIC/NSC, etc. whose realizable value is equivalent
to loan amount will be considered. Relaxation in mortgage of land in deserving
cases with 60% of the collateral liquid security. (Delegation: SZLCC).
DSCR DSCR ratio while assessing the loan is mandatory and
required minimum ratio of 1.5:1
Age Deviation Age at loan maturity should not exceed 75 years. For
applicants above age 60 years, suitable co-applicant has
to be taken considering age/succession. Age Deviation in
the scheme will be approved by SZLCC and above
Festival Offer - Waived with effect from 01.10.2021 to 31.12.2021
Waiver of Processing
charges
Technical Feasibility & Economic Viability
Technical i) Financing of farm machinery should be based on viability of
Feasibility individual investment, suitability of the machinery, scope of custom
hiring, anticipated increase in farm production, net incremental income
on acquisition of the tractor.
ii) Machinery is approved by Central Farm Machinery Training &
Testing Institute (CFMTTI) / or the agencies approved by Central/State
Government.
iii) Arrangement for repairs, supply of spare parts, fuel, after sale
service, etc. should be in the proximity.
Economic Productive Tractor Power Combined Other Farm
Viability Work/ Custom Tiller Harvester Machinery
Hiring minimum 1000 600 1000 300
hours
India is the second largest fish producing countries in the world and shares
7.58% to the global production, contributing 1.24% to India's Gross Value Added
(GVA) and 7.28%
(2018-19) to the agricultural GVA. The sector provides livelihood to about 25 million
fishers and fish farmers at the primary level and twice the number along the value
chain. As per master direction of Reserve Bank of India, Fishery has been classified
under Agriculture
sector (Allied activity).
Government of India, through Ministry of Fisheries, Animal Husbandry and
Dairying, Department of Fisheries has launched an all India Centrally Sponsored
Scheme
"Pradhan Mantri Matsya Sampada Yojana (PMMSY)" as a part of "Atmanirbhar Bharat
Abhiyaan".
This circular supersedes earlier guidelines barring specifically issued under
Govt. schemes like PMMSY (HOBC 114/140 dated 30.06.2020).
Aquaculture is the breeding, rearing, and harvesting of fish, shellfish, algae, and other
organisms in all types of water environments.
Pisciculture- The breeding, rearing, and transplantation of fish by artificial means is
called pisciculture, in other words, fish farming.
Fishery-Fishery is the enterprise of raising or harvesting fish and other aquatic life.
There are three main types of fisheries viz. Marine fisheries, Inland fisheries and
brackish
water fisheries.
(A)Marine Fisheries: - It is mainly divided in three parts based on its fishing
operations and details are as under:-
1. In-Shore Fishing - In-shore fishing is confined to its operations in inshore
waters up to a depth of 9 miles.
2. Off-Shore Fishing - Off-shore fishing would extend beyond 10 miles up to 20
miles depth.
3. Deep-Sea fishing - lying beyond a depth of 20 miles from shore.
(B) Inland Fisheries:- Rivers, Dams, Tanks, ponds, lakes and swamps constitute a
very large part of the available water resources.
(C) Brackish water:- Brackish water is mixture of fresh and salty water which usually
occurs in estuaries.
1. Pre-stocking:
The pond is first cleaned by mechanical/ chemical removal of unwanted weeds
and
predatory fish
This is accomplished by repeated netting and sun drying or use of mahua cake
The toxic effect of mahua cake remains for 15 days in which fish is not to be
used for
human consumption
Lime is used to bring the pH of the pond/tank to the desired level as alkaline
ponds are more productive.
Lime increases the resistance of soil to parasites. It hastens organic
decomposition
2. Fertilization:
Fertilization of pond is an important means for intensifying fish culture by
increasing the natural productivity of the pond.
A combination of both Organic and Inorganic fertilizers may be used for best
results.
Organic manure to be applied after a gap of 03 days from the date of liming.
Inorganic fertilization to be undertaken after 15 days of organic manuring.
Organic manuring by use of cow dung ©5000kg/ha.
Inorganic fertilizers like urea, triple super phosphate depending on the soil
profile, type of fish and the climatic condition.
3. Stocking:
The pond will be ready for stocking after 15 days of application of fertilizers.
Fish fingerlings of 50-100 gm size (10cm size) should be used for stocking @
5000
nos. per hectare.
Fish can be fed with a mixture of rice bran and oilcakes in the ratio 4:1. The feed
should be placed on a feeding tray or in feeding bags and lowered to the pond
bottom to reduce the feed losses.
Drip, Sprinkler and Lift Irrigation System-The design, the equipment and
technique of replenishing the Soil Water deficit by applying irrigation water is referred
to as “Irrigation System”. Some of the irrigation systems are surface irrigation system,
drip irrigation system, sprinkler irrigation system and subsoil irrigation system.
Drip Irrigation-It involves slow application of water, drop by drop, as the name
signifies, to the root zone of crop. In this method, water is used very
economically since losses due to deep percolation are reduced to a minimum. In
most of the States subsidy is available for this investment.
Solar Pump-This is the present trend in energisation of the pumps. Here solar
photovoltaic cells are installed and connected to the electric pumps, its green
solutions, having very little expense for maintenance. Ministry of NRES gives
subsidy for installation of these pumps. We should encourage such investments as
solar power is abundant in India. Advances for installation of solar pumps are
classified under PS-Agriculture
A RUPAY credit card is issued for availing the limit. Passbook will contain the
name, address, particulars of land holding, borrowing limit/sub limits, validity
period etc.
Credit Limit: Entire production credit requirements of the farmer for the full
year, including the credit requirements for the ancillary activities related
to crop production such as maintenance of agricultural
machinery/implements, electricity charges etc., are taken into consideration
and 10% of limit towards cost escalation in scale of finance for every year is
added to determine the limit for the succeeding years (ie.
2nd, 3rd, 4th, 5th year), thus total requirement of credit for five years is
calculated, accordingly documents are also obtained for full amount of five
years..
The KCCs has interest subvention. As per the recent norms of Govt. of India,
interest subvention is not available to maintenance portion of KCC limit.
This has to kept in mind while arriving at KCC limit.
Type of Facility
• Revolving cash credit: - No restrictions on number of drawls and
repayment within the sanctioned limit.
• Entire repayment once in a year, exception crops like sugarcane
and banana crops in 18 to 24 months.
Security:
Documents
Required
i) Documents related to house of the applicant,
ii) Ration Card, and
iii) Voters’ list/Identity card.
iv) Aadhaar card
Purpose
Purchase of improved seeds, manures and fertilisers, plant protection
materials, payment of hire charges for tractors, irrigation charges, electricity
charges etc. and also meeting part of consumption needs.
LIMIT
i) Based on land area taken on tenancy for share cropping or
on oral lease and scale of finance, maximum Rs.50,000/-
ii) Out of the total limit of Rs.50,000-, upto 10% i.e. Rs.5000-
be earmarked for consumption purpose.
iii) Upon satisfactory conduct of the account for three years, the
limit may be enhanced, if requested by the card holder.
Issue of Cards-The farmers under the scheme will be issued a credit
card-cum-pass-book incorporating the name, address, photograph,
Repayment:
• Seasonal sub-limits should be adjusted after
harvesting/
marketing of
crops.
• While disbursing finance against storage receipts/produce
marketing, seasonal sub-limits should be adjusted and only
balance amount may be disbursed.
Category of borrowers
Marg
in
i) Up to Rs.1,60,000/-All borrowers Nil
ii) Over Rs.1,60,000/- All borrowers 15% to 25%
Notes:
• Short Term Loans include Crop Loans/Working Capital Loans for allied
activities.
• Margin in case of crop finance need not be in cash. The cost of labour
of the farmer and his family and the cost of their inputs not financed by
the Bank can constitute margin.
• The quantum of crop loans should be worked out on the basis of scale
of finance approved by District Level Technical Committee for each
crop.
• Where subsidy is available, same should be treated as margin and no
further margin money should be insisted in the above-mentioned
margin norms except as provided in respective subsidy oriented schemes
like cold storage/rural godowns/hi-tech agri. products where subsidy is
back ended. Hence, normal margin needs to be maintained in such
schemes except employment oriented/Government sponsored schemes
like PMRY, SGSY, etc.
Security:
Type of Credit - Loan Amount - Security to be obtained
A. Crop
Loan
a) Up to Rs. 1,60,000/- - i)Hypothecation of Crops/Stocks
b) Over Rs. 1,60,000/- i) Hypothecation of crops/stocks and
ii) Mortgage of land/ Declaration as
per State Ag. credit Act OR
iii)Collateral Security of Adequate worth.
B. Terms Loans
i) Where movable assets are
created a) Up to Rs.
1,60,000/-
i) Hypothecation of assets created out of bank loan. b) Over Rs. 1,60,000/-
i) Hypothecation of assets created out of bank loan and
O
R
O
R
Notes:
ZLCC/ SZLCC may permit waiver of this security only in deserving
cases, provided suitable third party guarantee/s of adequate worth could
be obtained. As the third party guarantee in lieu of mortgage/charge on
immovable property or collateral security may be taken for loans above
Rs. 160,000/-, Branches/approving authority should carefully examine
and be satisfied with the antecedents and acceptability of the guarantors
before accepting their guarantees. Normally, care should be taken to
avoid guarantor/s who is/are close relative/s of borrower/s.
• In case of tractor/power tiller advances, relaxation in respect of
eligibility criteria on minimum land holding/mortgage of
land/immovable properties may be permitted on merits by the SZLCC and
above authorities, as per prevailing practices.
• In all other cases of Agricultural Advances not specified herein, i.e.
‘where movable assets are not created’, ZLCC/ SZLCC may permit the
waiver of Mortgage of immovable properties / land depending upon the
genuineness / merits of the borrower/s. This relaxation should be used
judiciously and in exceptional cases.”
• In states where legislation enacted on the lines of Talwar Committee
recommendations has come into force, the branches may obtain the
(i) In states where declaration and mortgage attract stamp duty at same
rate, mortgage of immovable property should be insisted upon. However,
if declaration attracts stamp duty at lower rate than that of legal/
equitable mortgage, creation of charge by declaration may be resorted to.
(ii) If stamp duty is exempted on declaration of and not on mortgage,
declaration for creating charge may be obtained upto exemption limit,
if any, prescribed under respective Act.
• In states where Agriculture Credit Act has not come into force, legal or
equitable mortgage must be obtained, wherever mortgage of land is
stipulated.
• Security norms for agricultural advances granted under centrally
sponsored schemes will be governed by those stipulated for such
schemes.
• For advances over Rs.160,000/- where movable assets are not
created, it is desirable to obtain mortgage of land as a principal
security even though it is not explicitly prescribed.
Non-encumbrance certificate should not be insisted upon where the land
is not taken as security,
However, where the land is stipulated as security, non-encumbrance
certificate/ search should be taken as follows:
(i) For Advances with Limits upto Rs.100 lakhs (w.e.f. 19.1.2000) the
search period stipulated is 13 years.
(ii) For Limits over Rs.100 lakhs the stipulated search period is 30
years.
The Branch Lawyer’s report on title and certificate stating that the “borrower’s
title to the land is clear, marketable and free from encumbrances” is also
essential.
The extracts/ certificates which are essentially required to be produced along
with the application forms are: Extracts of Record of Rights & No Dues
Certificate.
Eligible beneficiaries:
a) For creation of storage infrastructure (50-5000mt) and non-storage
infrastructure:-
Individual, group of farmers, FPOs, FPCs, partnership/proprietorship
firms, companies, NGOs, SHGs, cooperative marketing
federations, Panchayats, APMCs, State Warehousing Corporations,
State Civil Supplies Corporations etc.
b) For creation of storage infrastructure (50-5000mts):-State agencies
including State Govt. Departments such as APMC & Marketing
Boards, State warehousing Corporations, State Civil supplies
Corporations etc.
c) For development/upgradation of farmer-consumer market and Rural
Hats/ Rural Primary Markets(RPMs):
Subsidy : The back ended capital subsidy is 25% or 33.33% of the capital
cost depending upon area and category of the beneficiary.
The subsidy structure is as
follows. a) For storage
infrastructure projects -
Important Circulars:-
1) Priority Sector Lending – Master Direction—HOBC 116/135 dated
25.08.2022
2) Financial Inclusion & PMJDY – Operational guidelines – Circular Letter
no. 2019-20/123 dated 11.02.2020
3) Master Circular on SHG-Bank Linkage Programme – HOBC no.
116/107 dated 28.07.2022
4) STAR KISAN GHAR – HOBC 115/66 dated 02.06.2021
5) Star Bio Energy Scheme (SBES) – HOBC 115/68 dated 03.06.2021
6) FARM MECHANISATION SCHEME (FMS) – HOBC 115/103 dated
28.06.2021
7) Master Cir. On Gold Loan Scheme – HOBC no. 115/181 dated
30.09.2021,Circular letter 2021-22/152 dated 14.01.2022
8) "Star Animal Husbandry Infra (SAHI)" under Central Sector
Scheme
(AHIDF) – HOBC 114/101 dated 20.08.2020,
9) "Star Agri Infra (SAI)" under Central Sector Scheme (AIF) –
HOBC
no.114/102 dated 20.08.2020 & Circular Letter No.:2022-23 /16 dated
02.05.2022
10) Master Circular - Deendayal Antyodaya Yojana — National Rural
Livelihood
Mission (DAY-NRLM) – HOBC 115/10 dated 07.04.2021
11) Master Circular- Credit facilities to minority Communities – HOBC
115/13 date 07.04.2021
12) Master Circular - Credit facilities to Scheduled Castes (SCs) &
Scheduled
Tribes (STs) dated 19.04.2021
13) Star Kisan Credit Card (KCC) Scheme – Both for Crop & Animal
Husbandry - HOBC 115/107 dated 30.06.2021
14) STAR PISCICULTURE SCHEME (SPS) – HOBC 115/124 dated
12.07.2021
15) Star Krishi Urja Scheme (SKUS) under Central Sector Scheme
(PM KUSUM) – HOBC 114/139 dated 30.09.2020
16) Star Blue Revolution Scheme (SBRS) under Central Sector Scheme
(PM MSY) – HOBC 114/140 dated 30.09.2020
17) Star Micro Food Processing Enterprises Scheme (SMFPE) under
Centrally Sponsored PMFME Scheme – HOBC 114/100
dated
18.08.2020 & Cir. Letter no. 2021-22/23 dated 07.07.2021
18) Star Farmer Producer Organizations (SFPOs) Scheme – Financing to
FPO/FPC – HOBC 114/170 dated 31.10.2020
19) "Star Krishi Vaahan" – HOBC 114/191 dated 03.12.2020
20) All Agriculture Proposal formats -- HOBC 110/192 dated
– 03/01/2017
21) Tatkal Loan – HOBC 106/117 date- 01/11/2017
No Capital Subsidy would be sanctioned to any SHG from the date of implementation
of
DAY-NRLM
Community Investment Support Fund (CIF)
CIF would be provided by MoRD to the SHGs promoted under DAY — NRLM in all
blocks
(intensive and non-intensive) and would be routed through the Village level/ Cluster level
Federations, to be maintained in perpetuity by the Federations. The CIF would be used,
by
the Federations, to advance loans to the SHGs and/or to undertake the
common/collective
socio-economic activities.
Interest subvention
For loans up to t3 lakh under the scheme, banks will extend credit at a concessional
interest rate of 7% per annum. For outstanding balance upto t3 lakh, banks will be
subvented at a uniform rate of 4.5% per annum during FY 2022-23. For loans above t3
lakh
and upto T5 lakh under the scheme, banks will extend credit at interest rate equivalent
to
Know Your Customer (KYC) verification of only the office bearers shall suffice for
opening of savings bank account. For KYC verification pertaining to SHG
members during opening of accounts, instructions of Department of Banking
Regulation in Master Direction on KYC (dated February 25, 2016, updated as on
March 23, 2021) shall be adhered to.
The bank may accept declaration in Form No 60 in place of Permanent Account
Number
Business Correspondents deployed by banks may also be authorized to open
Saving
Bank Accounts of the SHGs after verification/approval of the base branch,
Financial Literacy:
DAY-NRLM has trained and deployed a large number of cadre called 'Financial Literacy
Community Resource Persons (FL-CRPs)' to carry out financial literacy camps at village
level. Financial Literacy Centres (FLC) established by various banks may coordinate
with
respective SRLMs and utilize the services of FL-CRPs to conduct village camps on fL
Financial Literacy.
Data Sharing
Banks should share data of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and
Pradhan Mantri Suraksha Bima Yojana (PMSBY) with DAY-NRLM on agreed formats to
facilitate higher enrollment and claim settlement under the mentioned schemes.
Funding Pattern:
DAY-NRLM is a Centrally Sponsored Scheme and the financing of the programme
would
be shared between the Centre and the States in the ratio of 60:40 (90:10 in case of
North
Eastern States including Sikkim; completely from the Centre in case of UTs). The
Central
• Segments of PMMY
• Margin –15% for Kishore and Tarun, for loan upto Rs.50,000/ (Sishu)- NIL
Mar
gin.
• Repayment – 5 to 10 years
Any individual, above 18 years of age. At least VIII standard pass for projects
costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the
business / service sector. Only new projects are considered for sanction under
PMEGP. Self Help Groups (including those belonging to BPL provided that they
have not availed benefits under any other Scheme), Institutions registered under
Societies Registration Act,1860; Production Co-operative Societies, and Charitable
Trusts are also eligible. 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.
Existing Units (under PMRY, REGP or any other scheme of Government of India
or State Government) and the units that have already availed Government Subsidy
under any other scheme of Government of India or State Government are NOT
eligible.
Objectives:
I. To generate employment opportunities in rural as well as urban
areas of the country through setting up of new self-employment
ventures/projects/micro enterprises.
II. To bring together widely dispersed traditional artisans/ rural and
urban unemployed youth and give them self-employment
opportunities to the extent possible, at their place.
III. To provide continuous and sustainable employment to a large
segment of traditional and prospective artisans and rural and urban
unemployed youth in the country, so as to help arrest migration of
rural youth to urban areas.
IV. To increase the wage earning capacity of artisans and contribute to
increase in the growth rate of rural and urban employment.Benefits:
Other Conditions :
At national level it is KVIC and at state level KVIB & DIC. On PMEGP e-portal
there is a separate link for 2nd financial assistance. Concerned bank will
sanction loan within 60 days and claim margin money as per procedure in
PMEGP. Margin Money will be kept in TDR and no interest will be paid.
Concerned bank and agency will make joint inspection. Third party
inspection will be carried out by KVIC separately. CGTMSE cover can be
obtained by paying requisite fee.
Shri Narendra Modi, Hon’ble Prime Minister of India in his Independence Day
speech on 15th August 2015 unveiled Stand Up India Scheme. The scheme
promotes entrepreneurship at grass root level for economic empowerment and job
creation. The scheme aims at institutional credit structure for underserved sector of
people like SC, ST and woman entrepreneurs above 18 years for setting up a new
ventures/ enterprise in manufacturing, trading or services sector. The scheme
covers all bank branches of India.The scheme is operated in 3 ways :-
1) Directly at the branch
2) Through SIDBI’s Stand Up India portal (www.standupmitra.in)
3) Through Lead District Manager
This loan can be given to greenfield enterprises only. The potential borrower will
register on the portal first. He will answer a set of 8-10 questions. Depending upon
the response, applicant will be classified as ready borrower or trainee borrower.
Ready borrower doesn’t require any hand holding, loan application process starts
and application number is generated. Information of the borrower is shared with
concerned bank branch, LDM, SIDBI and NABARD. The offices of SIDBI/ NABARD
will be Stand Up Connect Centre (SUCC). Generated application will be tracked by
all the above. If applicant indicates need for hand holding, then the application
is shared by LDM, SUCC and indicated Hand Holding agency. Once the hand
holding is done properly, to the satisfaction of LDM and borrower, application is
generated and shared with concerned bank branch.
• In Stand up India, applicants from SC, ST category and woman are
eligible for loan.
• Loan limit may be between Rs.10 lakhs to Rs. 1crore.
Working capital upto Rs.10 lakhs will be by way of way of overdraft. Any
working capital loan exceeding Rs. 10 lacs will be through Cash Credit limit.
Banks can also issue RuPay debit card for the convenience of the borrower .
• Loan shall be composite loan of term loan for plant and machinery and
working capital.
• Bank finance will be 75% of project cost ( If the borrower’s margins exceed 25%
then loan size will be accordingly be lessened) and the rate of interest would
be MCLR+3%+tenor premium.
• Repayable in 7 years with maximum moratorium of 18 months.
• Besides primary security the Loans are covered under NCGTC and norms
are aligned with CGTMSE scheme/Credit Guarantee Fund Scheme for Stand-
Up India Loans (CGSSI) as decided by the banks
• Stipulated margin is 25%, of which borrower’s contribution will be 10% and
rest can be provided in convergence with other central/state govt. schemes.
• DLCC will review the progress.
• While opening loan account, in free code 3….”372”, Stand Up India
Scheme should be added.
Details of the scheme are given in Br.Circular 110/51 dated 27-05-2016
Financial Assistance :-
1) Plane Areas :- Rs.1,20,000/- (60:40)*
2) Hilly Areas :- Rs.1,30,000/- (90:10)*
3) Along with financial assistance, every beneficiary will be offered 90 to 95
days wages for construction work, which would be almost Rs.18,000/-. A
sum of Rs.12,000/- will be offered for construction of toilet.
Other Benefits
1) Financial Assistance will be transferred to the bank or Post Office account
of the beneficiary.
2) Minimum space of the house is 25 Sq.meters.
3) Training or Engineer will be given for construction and the house will be
built with latest technology and earthquake proof and safe from other natural
calamities.
4) The cost of unit assistance is to be shared between Central and State
Government in the ratio 60:40 in plain areas and 90:10 for North Eastern and
the Himalayan States.
5) 3% concession on interest rates on housing loans of up to Rs.2 lakh.
Financial Assistance:
1) Margin Money Subsidy @20% of the project cost having ceiling of Rs.1.00
lakh.
2) Interest subvention @6% / year both for working capital and term loan up to
Rs.10.00 lakhs for maximum period of 5 years.
3) Maximum loan limit will be Rs.10 lakhs.
4) Only new loans are eligible for the scheme.
5) Credit guarantee fee 1% of the loan amount or actual fee whichever is
less is charged by the CGTMSE/ NCGTC. It is not applicable to group
activity.
Financial Assistance:
1) 25% of margin money subsidy up to a project cost of Rs.1 crore with
a ceiling of Rs.25 lakhs, the borrower is required to bring 10% of the
project cost as his/her own contribution.
2) Loan shall be from Rs.10 lakhs to Rs.1 crore.
3) Repayment shall be as per prevailing norms of the bank.
4) Credit guarantee fee 1% of the loan amount or actual fee whichever
is less is charged by the CGTMSE/ NCGTC.
Process flow for PowerTex Mudra Scheme and Power Tex Stand Up India
Scheme is as under:-
a) The borrower will submit application to the ministry through online portal
www.ipowertexindia.gov.in
Scope of coverage: All individual bank account holders in the age group of
18 to 70 years in participating banks will be entitled to join. In case of multiple
bank accounts held by an individual in one or different banks, the person
would be eligible to join the scheme through one bank account only.
Aadhar would be the primary KYC for the bank account.
Enrollment Modality / Period: Insurance cover under PMSBY would be
for a period of one year from the date of enrolment (date of auto debit of
premium) under the scheme to allow subscribers to join the scheme at any
point of time. Subscriber would have to submit his consent to join / pay the
premium of Rs.20/- per annum by auto-debit from the designated individual
bank account / Post office in the prescribed form to the Bank / Post Office /
Insurer in order to enroll under the scheme / renew the scheme In case of
direct enrolment through an insurer, the subscriber would also have to submit
an ECS / NACH mandate authorizing the insurer to receive the premium from
his Bank / Post office account. Individuals who exit the scheme at any point
may re-join the scheme in future years by paying the premium provided they
are eligible to join the scheme.
Premium: Rs.20/- per annum per subscriber. The premium will be deducted
from the account holder's Bank / Post Office account through 'auto-debit'
facility in one instalment on or before the due date of each annual coverage
period under the scheme. The premium would be reviewed based on annual
claims experience.
Master Policy Holder: Participating Banks / Post Offices would be the
Master policy holders. However, individuals can also approach General
insurers to enroll under the scheme.
Termination of cover:
i)On attaining age 70 years (age nearer birthday).
ii) Closure of account with the Bank / Post office or insufficiency of balance
to keep the insurance in force
iii) In case a member is covered through more than one Bank / Post office
account/insurer and premium is received the Insurance Company
inadvertently, insurance cover will be restricted to one Bank/post office
account only and the premium paid for duplicate insurance(s) shall be liable
to be forfeited.
iii) If the insurance cover is ceased due to any technical reasons such
as insufficient balance on due date or due to any administrative
issues, the same can be reinstated on receipt of full annual
premium, subject to conditions that may be laid down. During this
period, the risk cover will be suspended, and reinstatement of risk
cover will be at the sole discretion of Insurance Company.
iv) Administration: The scheme, subject to the above, will be
administered by General Insurance Companies. The data flow
process and data proforma will be provided separately. It will be
the responsibility of the participating Bank/Post Office/Insurer to
recover the annual premium from the account of subscribers
within the prescribed period through 'auto-debit' process.
Participating Banks/Post Offices would immediately effect the
auto-debit and transfer the data/premium to the insurance
company, but not later than by the 15th day of the month
succeeding the month in which the auto-debit is made. Enrolment
form / Auto-debit authorization in the prescribed proforma shall be
obtained and retained the participating Bank / Post Office. In case
of claim, the Insurance Company may seek submission of the
same. Insurance Company reserves the right to call for these
5. Premium: Rs.436/- per annum per member. The premium will be deducted from
the account holder’s bank account through ‘auto debit’ facility in one instalment, as
per the option given, on or before 31st May of each annual coverage period under
the scheme. Delayed enrolment for prospective cover after 31st May will be
possible with payment of pro-rata premium as laid down in para 3 above. The
premium would be reviewed based on annual claims experience.
6. Eligibility
Conditions:
Individual bank account holders of the participating banks aged between 18
years (completed) and 50 years (age nearer birthday) who give their consent to
join / enable auto-debit, as per the above modality, will be enrolled into the scheme.
7. Master Policy Holder: Participating Banks are the Master policy holders. A
simple and subscriber friendly administration & claim settlement process has
been finalized by LIC / other insurance companies in consultation with the
participating bank.
The Government of India, in April 2016 had launched PMFBY after rolling
back the earlier insurance schemes – National Agriculture Insurance
Scheme (NAIS), Weather based Crop Insurance scheme and Modified
National Agricultural Insurance Scheme (MNAIS). The scheme is
implemented by Agriculture Insurance Company of India (AIC) and other
empanelled private general insurance companies which are selected by the
State Governments through bidding.
PMFBY will provide a comprehensive insurance cover against failure of the
crop thus helping in mitigating risk, stabilising the income of the farmers and
encourage them for adoption of innovative practices.
Crops covered by PMFBY
a) Food crops (Cereals, Millets and Pulses)
b) Oilseeds
c) Annual Commercial / Annual Horticultural crops.
The scheme is compulsory for loanee farmer obtaining Crop Loan/ KCC
account for notified crops. However, voluntary for Other/ non loanee farmers
who have insurable interest in the insured crop(s).
The Maximum Premium payable by the farmers will be 2% for all Kharif Food
& Oilseeds crops, 1.5% for Rabi Food & Oilseeds crops and 5% for Annual
Commercial/ Horticultural Crops.
The difference between premium and the rate of Insurance charges
payable by farmers shall be shared equally by the Central and State Govt.
The seasonality discipline shall be same for loanee and non-loanee
farmers.
The scheme will be implemented by AIC and other empanelled private
general insurance companies. Selection of Implementing Agency (IA) will be
done by the concerned State Government through bidding.
The existing State Level Co-ordination Committee on Crop Insurance
(SLCCCI), Sub-Committee to SLCCCI, District Level Monitoring Committee
(DLMC) shall be responsible for proper management of the Scheme.
General Exclusions: Losses arising out of war and nuclear risks, malicious
damage and other pre-ventable risks shall be excluded. Special efforts shall
be made to ensure maximum coverage of SC/ ST/ Women farmers.
Provision of penalties/incentives for states, Insurance companies and Banks
i.e. 12% interest to be paid by the Insurance Co. to farmer for delay in
settlement of claim beyond two months of prescribed cutoff date. Similarly
State Govt. has to pay 12% interest for de-lay in release of state share of
subsidy beyond three months of prescribed cutoff date/submission of
requisition by Insurance Co.
Important Circulars:-
1) Priority Sector Lending – Master Direction—HOBC 114/124 dated
09.09.2020
2) Financial Inclusion & PMJDY – Operational guidelines – Circular Letter
no. 2019-20/123 dated 11.02.2020 HOBC 114/207 dated 31.12.2020
3) Master Circular on SHG-Bank Linkage Programme – HOBC
no.115/12 dated 07.04.2021
4) Master Cir. On Gold Loan Scheme – HOBC no. 114/86 dated 30.07.2020
5) "Star Animal Husbandry Infra (SAHI)" under Central Sector
Scheme
(AHIDF) – HOBC 114/101 dated 20.08.2020
6) "Star Agri Infra (SAI)" under Central Sector Scheme (AIF) –
HOBC
no.114/102 dated 20.08.2020
1.भारतीय संविधान का भाग 17 राजभाषा यानी दे िनागरी से संबंवधत है , संघ के शासकीय प्रयोजनों
के विए भारतीय अंकों का अंतरराष््र ीय का का प्रयोग होगा
3. संविधान का भाग 17 को 4 अध्यायों ं व विभावजत वकया गया है , इसं व 343 से 351 तक,
कुि 09 अनुच्छे द भाषा से संबंवधत है
अनुच्छे द 343 – संविधान के अनुच्छे द 343(1) प्रािधान वकया गया है वक – दे िनागरी ं व विखित वहं दी
विव ही संघ की राजभाषा होगी और संघ की शासकीय प्रयोजनों के विए, भारतीय अंकों का
अंतरराष््र ीय का का प्रयोग वकया जाएगा
अनुच्छे द 344 : यह अनुच्छे द राजभाषा ोयोग का ग न एिं संसदीय राजभाषा सवं वत के बारे ं व
अिगत कराएगी
अनुच्छे द 346: एक राज्य एिं दस सरे राज्य की बी अ ै र वकसी राज्य और संघ के बी त्र व्यिहार
संघ की राजभाषा ं व वकया जाएगा
अनुच्छे 347 : वकसी राज्य की जनसंख्या के एक िगग द्वारा बोिी जाने िािी भाषा के संबंध ं व विशेष
प्रािधान
अनुच्छे द 348 : उच्चतं न्यायािय और उच्च न्यायाियों ं व और वबि अवधवनयं ों ोवद के विए
इस्तें ाि की जाने िािी भाषा अंग्रेजी भाषा ं व होगी जब तक वक संसद कानसन द्वारा अन्यथा प्रदान न
करे
अनुच्छे द 349: भाषा से सं बंवधत कुछ कानसनों को अवधवनयवं त करने के विए विशेष प्रविया.
अनुच्छे द 350 : वशकायतों के वनिारण के विए संघ या राज्य ं व प्रयु्त होने िािी वकसी भाषा ं व
अभ्यािेदन दे ने का हक है
4.भारतीय संविधान की 8िी अनुसस ी ं व कुि 22 भाषांं को ं ान्यता प्रदान की गयी है 8िी ं
अनुसस ी ं व विदे शी भाषा ने ािी को शावं ि वकया गया है
5.राजभाषा अवधवनयं 1963 की धारा 3,26 जनिरी 1965 से िागस होगा है राजभाषा अवधवनयं
1963 की धारा 3(3) का ं हत्व राजभाषा अवधवनयं की धारा 3(3) ं व जारी वकए जाने िािे 14
प्रकार के दस्तािेजों से हैं
6.राजभाषा वनयं को 1976 ं व ाररत वकया गया है और इसका संशोधन 1987 ं व हुो है
11. राजभाषा कायाग न्वयन सवं वत का ं ुख्य कतगव्य वहन्दी के प्रगां ी प्रयोग की सं ीक्षा करना है
14.राजभाषा अवधवनयं 1963 की धारा 3 (3) के तहत उल्िंघन होने र, ऐसे दस्तािेजों र
हस्ताक्षर करने िािे अवधकारी उतरदाई है
15.हर िषग गृह ं ंत्रािय, राजभाषा विभाग द्वारा राजभाषा र िावषगक कायगिं तैयार एिं जारी
करता है
16.भारत की राजभाषा ्या है ? दे िनागरी ं व विखित वहं दी विव . राजभाषा वनयं 1976
17.राजभाषा वनयं ों के अनुसार, भारतीय राज्यों को 3 क्षेत्रों ं व िगीकृत वकया गया है यानी क, ि
एिं ग or A,B AND C ( वनयं 2 of राजभाषा वनयं 1976)
ग क्षेत्र / C Region – कनाग ्क, तवं िनाडस, केरिा, ोन्र प्रदे श, तेिंगाना, ंवडसा,
िेस्् बवगाि, गोिा, जम्ं स एिं कश्ं ीर , ोसां , नागािैंड, ं ेघािया, अकाणा ि प्रदे श, वस्कीं ,
वत्र ुरा, वं झोरां ,ं वण ुर, और संघ राज्य क्षेत्र : ां डु ेरी, िक्ष्यद्वी
18. वहं दी ं व प्राप्त त्र का जिाब अवनिायगत: वहं दी ं व दे ना होगा (वनयं 5 राजभाषा वनयं 1976)
19. ऐसे दस्तािेजों र हस्ताक्षर करने िािे व्यखियों की यह वजम्मे दारी होगी वक िे राजभाषा
अवधवनयं 1963 की धारा 3 (3) का अनु ािन सुवनवित करव (वनयं 6 - राजभाषा वनयं
1976)
20.कोई ोिेदन, अप् ीि या अभ्यािेदन, जब भी वहं दी ं व वकया जाए या हस्ताक्षर वकया जाएा,
उसका उतर वहं दी ं व दे ना होगा (वनयं 7 – राजभाषा वनयं 1976)
21.केद्र सरकार ोदे श द्वारा, ऐसा अवधससव त कायाग िय तय कर सकती है , जहां “व्प्प्णी तथा
प्राका ण िेिन”(Noting & Drafting) और उ्त ोदे श ं व बताये गए शासकीय प्रयोजनों के
22.वकसी कं ग ारी को वहं दी ं व प्रिीणता प्राप्त सं झा जाएगा वक ____उसे वहं दी ं व प्रिीणता प्राप्त
है
2.स्नातक रीक्षा ं व अथिा उसके सं तु ल्य या उससे उच् तर वकसी अन्य रीक्षा ं व वहं दी को एक
िैकखल्पक विषय (optional subject) के का ं व विया था या
3.घोषणा- त्र प्रस्तु त करता हो (on the declaration basis) (वनयं 9 - राजभाषा वनयं 1976)
23. वकसी कं ग ारी को वहं दी का कायगसाधक ज्ञान प्राप्त सं झा जाएगा वक ____उसे वहं दी कायगसाधक
ज्ञान प्राप्त है
1.उसने ं ैव्र क रीक्षा या उसके सं तु ल्य या उससे उच् तर रीक्षा वहं दी विषय के साथ उतीणग कर िी
है या
24.कवद्रीय सरकार के वकसी कायाग िय के प्रयोग ं व ोने िािे ं ैनुअि, संवहताएं , अन्य प्रविया
सावहय, स््े शनरी की िस्तु एं जैसे रां ग , सभी नां ट्टा, सस ना ट्टा, त्रशीषग और विरारों र
उकीणग िेि तथा स््े शनरी की अन्य ं दव वहं दी और अंग्रेजी ं व अथाग त वद्वभाषी होगी (वनयं 11 –
राजभाषा वनयं 1976)
25. राजभाषा अवधवनयं एिं वनयं ों के प्रािधानों का अनु ािन हे तु उतरदावयि कनन है ?
कायाग िय का प्रशासवनक प्रधानAdministrative Head of the Office (वनयं 12 – राजभाषा वनयं
1976 )
26.राजभाषा के क्षेत्र ं व वहं दी कायाग न्ियन के विए कवद्रीय वहं दी सवं वत शीषगस्थ सवं वत है इसकी
अध्यक्षता प्रधानं ंत्री जी करते है
28.राजभाषा अवधवनयं 1963 की धारा 4 (1) के तहत जनिरी 1976 ं व संसदीय राजभाषा सवं वत
का ग न वकया गया था इस सवं वत के कुि 30 सदस्य है , वजनं व से 20 िोकसभा से और 10
राज्य सभा से शावं ि है
29.यह सवं वत भारत सरकार की राजभाषा नीवत के अनुका विवभन्न ं ंत्राियों/विभागों ं व राजकीय
प्रयोजनों के विए वहं दी के प्रयोग की वदशा ं व की गई प्रगवत का ुनविगिोकन करके उन र अ नी
वसराररयशों सवहत ं ाननीय राष््र वत को अ नी रर ो्ग प्रस्तु त करती है राष््र वत रर ो्ग को प्रये क
सदन के सं क्ष रििाएं गे और सभी राज्य सरकारों को भेजेगा
30. राजभाषा संबंधी संसदीय सवं वत की कनन-सी उ -सवं वत बैंकों का यगिेक्षण करती है ?
31. अंग्रेजी के अवतरर्त वहं दी ं व ्ं कण या ोशुविव कायग करने िािे अं ग्रेजी ्ं ककों और
ोशुविव कों को िं शा: रु.160/- और का.240/- प्रवतं ाह वहं दी प्रोसाहन रावश दी जाती है
32.कोई ोिेदन, अप् ीि या अभ्यािेदन, जब भी वहं दी ं व वकया जाए या हस्ताक्षर वकया जाए तो
उसका उतर वहं दी ं व वदया जाएगा
Bank of India
Management Development Institute
Plot No.–30, Sector–11
CBD Belapur, Navi Mumbai
Navi Mumbai - 400614