recollect april 2011- march 2012 - · pdf fileapril 2011 – march 2012 cir no date...
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APRIL 2011 – MARCH 2012Cir No Date Subject DEP 02
08.04.11 Opening Staff Accounts
09 03.05.11 Interest Rates on S B Deposits 11 12.5.11 Restriction in the Usage of Withdrawal
Slips at Host Branches 21 06.08.11 Introduction of Redesigned Withdrawal
Slip 22 06.08.11 Enhancement of Funds Transfer Limit
for Retail Net Banking Customers 23 16.08.11 Introduction of Sweep / Reverse Sweep
Facility in Supreme Current Account
28 10.10.11 Redesigned Account Opening Form for Individual / Joint A/cs
32 23.11.11 Introduction of New Product – SB cum Overdraft Facility (OD) for Non Farmers and Landless Labourers
33 25.11.11 Inoperative Accounts 35 28.01.12 Back End Updation in CBS – Need to
ensure proper checking 36 15.02.12 Foreclosure of Ind Double - Centenary
Certificate 39 05.03.12 Opening of “Small Account” 41 12.03.12 KYC requirement and facilitating
opening / operation of accounts of Migratory workers
42 16.03.12 Enhancement of Funds Transfer Limit under Retail & Corporate Net Banking Facility
43 16.03.12 Displaying list of Unclaimed Deposits / Inoperative Accounts
44 27.03.12 Nomination Facility – Witness in Nomination Form
ADV 07
09.04.11 Central Electronic Registry to avoid multiple loans against same security
08 11.4.11 Categorization of activities under Manufacture or Service under the MSMED Act 2006
12 26.4.11 Clarifications regarding IND SME SECURE and IB Doctor Plus Schemes
16 05.05.11 Revision in B P L R 17 05.05.11 Review of Base Rate 23 06.05.11 Financing receivables of Wind Power
suppliers and Financing against the security and cash flow of unencumbered wind mills
24 11.5.11 Introduction of Revised Educational Loan application
25 11.05.11 Housing Loan limit under Priority Sector 29 16.05.11 Procedure to send Confirmation of
Balances & Scrutiny of Financial Statements
30 16.05.11 Take over of Borrowal accounts from other Banks
36 25.05.11 Documentation - linking to Base Rate
Cir No Date Subject
on Renewal of existing facilities with BPLR based system
38 28.05.11 Automation of ARC transactions 44 08.06.11 OTS Policy for Farm Mechanisation /
Tractor Loans 47 13.06.11 Modifications in IB Star Rice Mill 48 16.06.11 Restructured Advances -- Additional
provision requirement 52 23.06.11 IB Swarna Mudra - Revision of Notional
Liability Amt for Gold Coins 67 19.07.11 Technology Upgradation Fund Scheme
- TUFS (New) 71 27.07.11 Obtaining Second Legal Opinion for
advances of Rs.50 lacs & above 72 27.07.11 Management of Subsidy in Core
Banking Solution 77 28.07.11 Implementation of “Write off / Waiver
Module” in CBS 86 22.08.11 Reverse Mortgage Loan Scheme –
Revised Annuity Amount 87 05.09.11 Cent percent identification of NPAs by
the CBS System 91 14.09.11 OTS Proposals in Accounts backed by
Securities 93 14.09.11 Additional Support Measures to MSE
Sector 94 16.09.11 Revised IBA Educational Loan Scheme
- 2011 96 17.09.11 Home Loans and NRI Home Loans with
variable ROI - Extension of repayment period on upward revision of interest rate
102 01.10.11 “HOME LOAN 2011 SCHEME” for Residents and NRIs
106 08.10.11 Enhancement of advance rate per gram of Jewels
107 10.10.11 Educational Loan (Non IBA Scheme) – for pursuing higher education in India and Abroad
111 18.10.11 Accepting OTS less than the value of Security - Submission of visit report by a Team of three officers relaxed for small loan NPAs
114 24.10.11 Repayment of Loans of Non-Resident by a Close Relative Resident Indians
115 02.11.11 Scheme of 1% interest subvention on Home Loans – Extension of scheme for the Financial Year 2011-12 and revised guidelines
116 03.11.11 Frauds perpetrated on the Bank by producting fake / fudged financial statements
117 03.11.11 Disposal of applications seeking finance -- web based status view facility
2 2
Cir No Date Subject
to applicants of credit limits 119 08.11.11 Take over policy of borrowal a/cs 120 08.11.11 Issuance of Certificate for the purpose
of getting Visa 123 01.11.11 Renewal of MoU with CRISIL for Rating
of MSME Customers 127 17.12.11 Cash Credit Limit to Self Help Groups
(SHGs) 128 19.12.11 Issuance of "Weaver Credit Card"-
Scheme details Communicated by IBA 133 22.12.11 Identification of NPAs - Flagging &
Deflagging of NPA A/cs- Authorisation to ZMs for A/cs upto Rs.10 lakhs and GM (R&L) for A/cs exceeding Rs 10 lakhs
134 23.12.11 “Home Loan 2011 Scheme” – Extn of the Scheme to existing Home Loan Borrowers
138 02.01.12 Home Loans – Withdrawal of Pre-closure Charges
140 03.01.12 Sanctioning of Retail Loans in bulk / to a group of borrowers – Policy guidelines
141 05.01.12 Issue of acknowledgment of Loan applications to MSME borrowers
142 10.01.12 Educational Loan – System generated product change and repayment schedule regeneration
144 20.01.12 Educational Loan – Uniform Loan Policy for Hostel and Mess charges
145 23.01.12 2% Interest Subvention Scheme and 3% additional incentive Subvention for Short-Term Crop Loans disbursed during 11-12
147 25.01.12 On Line Home Loan application 150 08.02.12 IB Swarna Mudra Scheme –
Submission of Form F to the Sales Tax Authorities while transferring gold coins from one state to another state
154 20.02.12 Revival, Reform and Restructuring Package for Handloom Sector- Scheme from Ministry of Textiles
155 28.02.12 Personal Segment Loan Products – Delegation of sanctioning powers to Branch Managers and Discontinuance of R B S
157 06.03.12 IB Home Loan Scheme – Revision in processing charges for Home Loans with limits above Rs.10.00 lakhs
161 26.03.12 Conversion of IBKC loans on account of Natural Calamity- Introduction of new Loan product ‘Restructured IBKC loan’
CRA 03
06.04.11 PAN Drive for Online view of 26 AS (Tax Credit Statement)
Cir No Date Subject
05 36
12.4.11& 07.06.11
Interbank Mobile Payment Service (IMPS)
06. 12.04.11 Customer Grievance Redress through SMS with keyword Complaint
11 20.04.11 Return of Dividend Warrants / Interest Warrants for want of payee's signature on the reverse of the instruments
20 28.04.11 Display of timings for RTGS / NEFT transactions
25 09.05.11 Database maintenance of pensioners 40 17.06.11 Collection of ESI contributions of
employers by branches 50 06.07.11 HDFC Standard Life Insurance
Business – Data Entry to be done at branches
52 07.07.11 Levy of Processing Charges on electronic payment system- NEFT / NECS / RECS / ECS
54 11.07.11 Withdrawal of Banking Cash Transactions Tax (BCTT) - regarding
59 18.07.11 Opening of Service Branch/ Tirunelveli & Issue of Demand Drafts on Tirunelveli
64 23.07.11 Distribution Tie up with SBI Mutual Fund for sale of MF products
65 23.07.11 Pension Master – Inputting correct values to avoid wrong calculations/ disbursements
68 26.07.11 Inspection by RBI on conducting of Government business by Agency Banks
69 27.07.11 Front end changes in NEFT / RTGS screens
76 06.08.11 Introduction of New Scheme - “ IB VIDYARTHI SURAKSHA “ by arrangement with M/s MetLife India Insurance Co Ltd.
82 17.08.11 Discretion to customers for selection between RTGS and NEFT
87 27.08.11 Green Initiative: use of Electronic Payment - e-Governance
91 08.09.11 Collection of Direct Taxes through our Bank’s ATM
94 14.09.11 Return Discipline in RECS (Debit) and MICR - Imposition of Penalty
96 23.09.11 Dishonour of electronic funds transfer for insufficiency of funds in the bank accounts – clarification
103 28.09.11 Collection of one time deposit and monthly subscription from the cable TV operators for Tamil Nadu Arasu Cable TV Corporation Ltd
104 28.09.11 Service charges for members 106 28.09.11 Merger of Indian Bank Depository
Services (DP ID: IN303093) with Indbank Merchant Banking Services Ltd
3
APRIL 2011 – MARCH 2012
3
Cir No Date Subject
(IBMBS Ltd) 115 10.10.11 Domestic Money Transfer- Relaxations 125 29.10.11 Collection of fees for TN Arasu Cable
TV Corporation Ltd 128 03.11.11 Co branded Mediclaim Policy “IB
Arogya Raksha “– Renewal of MOU for 2011-12
129 04.11. 11 On line Verification of Permanent Account Number (PAN) for accepting remittances (Income Tax, TDS etc.) under OLTAS and for creation of CIF
131 09.11.11 Issue of Demand Drafts for Rs.20000/- and above
132 09.11.11 Payment of Cheques / Drafts / Pay Orders / Banker's Cheques
138 19.11.11 NEFT between RRBs and Indian Bank / Other Banks
141 21.11.11 Government of Tamil Nadu- Refund of Pension amount after death of the pensioner or a/c becomes inoperative- under Pilot Scheme
154 17.12.11 Cheque Truncation System (CTS) in Chennai
160 23.12.11 Introduction of Demand Drafts Payable “At Par” at all Branches
132 09.11.11 Payment of Cheques / Drafts / Pay Orders / Banker's Cheques
138 19.11.11 NEFT between RRBs and Indian Bank / Other Banks
141 21.11.11 Government of Tamil Nadu- Refund of Pension amount after death of the pensioner or a/c becomes inoperative- under Pilot Scheme
154 17.12.11 Cheque Truncation System (CTS) in Chennai
160 23.12.11 Introduction of Demand Drafts Payable “At Par” at all Branches
169 14.01.12
TDS on Pension Payment - Income Tax for the Financial Year ending 31.03.2012 - Assessment Year 2012-13
170 19.01.12 NEFT between RRBs and Indian Bank/Other Banks
171 19.01.12 Separate entry for Tax Deducted at Source
184 10.02.12 Migrattion towards CTS 2010 Standard 185 14.02.12 Amedment to Para 15.2 submission of
Life certificate - regarding 189 17.02.12 Indo-nepal remittance system –
Measures to enhance usage 212 31.03.12 Frauds in payment of truncated
cheques
Cir No Date Subject
184 10.02.12 Migrattion towards CTS 2010 Standard 185 14.02.12 Amedment to Para 15.2 submission of
Life certificate - regarding 189 17.02.12 Indo-nepal remittance system –
Measures to enhance usage 212 31.03.12 Frauds in payment of truncated
cheques FX 02
06.04.11 Agreement with Weizmann Forex Ltd for money transfer through Western Union–Revised procedure.
03 18.04.11 Country Risk Management Policy – Changes in the risk rating of countries effective 01.04.2011
06 21.04.11 Service Tax on conversion of foreign currency transactions
09 24.05.11 Migration of existing accounts and opening of fresh accounts falling under provisions of FCR Act, 1976.
14 06.07.11 Introduction of more avenues for foreign inward remittances – New Electronic Funds Transfer Arrangement with UAE Exchange House, Abu Dhabi
19 16.09.11 Exchange Earners Foreign Currency (EEFC) A/c and Resident Foreign Currency (RFC) A/c– Liberalisation by RBI regarding Joint Account Holders
20 16.09.11 Holding of NRE / FCNR(B) accounts by NRIs / PIOs jointly with Indian resident close relatives – liberalisation by RBI
21 16.09.11 Savings Bank accounts maintained by Indian Residents– Liberalisation by RBI regarding Joint Account Holders
22 16.09.11 Foreign Investments in India – Transfer of security by way of gift – Liberalisation by Reserve Bank of India
24 03.10.11 On line submission of Half-yearly CPG H7 (ECGC related) statement through BBMIS templates – Statement No- 509
25 08.11.11 Brokerage / Commission paid by ECGC to our branches for the ECGC policy canvassed – Revised payment system offered by ECGC.
27 14.10.11 2% Interest Subvention on Rupee Export Credit
37 12.01.12 Modifications in parameters- NRE Term Deposits
40 09.02.12 FCRA ( Foreign Contribution (Regulation) Act), 2010 EFFECTIVE FROM 01 05 2011.
43 22.02.12 Sale of Travellers’ cheques– Empanelment of various agencies
GEN 01
01.04.11 Pension related recoveries by branches – Credit through C2C
10 25.04.11 Endorsing copies of letters, e-mails replies by Officials at
4 4
Cir No Date Subject
Branch/ Zonal level to the addresses/e-mail of Governor / Top Management of RBI
17 16.05.11 RBI’s Approach Paper on Automatic Data Flow from Bank to RBI
19 25.05.11 Revised Guidelines on Submission of Suspicious Transaction Report (STR) – Implementation of IBA recommended 88 new AML Scenarios
22 31.05.11 Settlement of Failed ATM Transactions & Payment of Compensation
25 13.06.11 NPA Management – Assignment of NPAs to Asset Reconstruction Companies – Continuation of SARFAESI / pending suits and filing of suits – Formats to be used.
29 24.06.11 Audit Committee of the Board directions to include one Pensioner as member of the Committee in Branches where large number of pension accounts are handled.
30 30.06.11 Assigning Threshold Limit for Accounts 41 16.08.11 Sharing of information - Communication
from Indian Banks' Association 43 05.09.11 Adjustment of ATM Cash by ATM
attached branches Change in Accounting of Excess ATM Cash
44 13.09.11 Facility provided to enter the Aadhar Number (UID) in CBS
53 03.10.11 Launch of Indian Bank Mastercard Platinum Debit Card
54 03.10.11 AMC Charges for Maestro / MasterCard Debit Cards
63 09.11.11 Digital Certificates issued to officers of our Bank
65 12.11.11 Fraudulent encashment of cheques issued by account holders as ‘specimen’ to Finance Companies
67 17.11.11 Uploading of auction notices issued under SARFAESI Act in the website “tender.gov.in”
69 21.11.11 Revision of KYC Documents for Opening of Accounts
71 23.11.11 Entrusting Legal matters to Advocates 75 28.11.11 Joint custody of Strong Room Keys in
branches with one Officer 82 08.12.11 KYC Norms – Customer Identification
Requirements for Walk-in Customers 85 22.12.11 Waiver of Service Charges for Intercity
Transactions 92 21.01.12 Wireless Access Protocol (WAP) Based
Mobile Banking Facility 93 23.01.12 Guidelines on Customer Risk
Catergorisation review
Cir No Date Subject
99 04.02.12 Amendment in Rule 114B of the Income Tax Rules 1962
100 09.02.12 Service charges on attestation of e-payment mandate form
114 26.03.12 Claririfcation on obtention of PAN for issue of Debit cards
115 26.03.12 Disabling Cash retraction feature in ATMs
HRM 01
01.04.11 Nodal Officer for Customer Service /Principal Code Compliance Officer (BCSBI) and Public Information Officer under Right to Information Act 2005
18 19.05.11 Interest on Staff Provident Fund Accounts and Loan against PF / RWPF loan.
20 25.5.11 Modification in Nomination of Disciplinary Authority / Concurrent Discipline Authority / Appellate Authority / Reviewing Authority for Officers
21 01.06.11 Categorisation of Branches as on 31.03.2011
34 06.07.11 Reimbursement of Lodging Expenses to Officers in Scale I to Scale V, while travelling on duty
35 06.07.11 Reimbursement of expenses towards Transport of personal effects on Transfer of an Officer–Revision in Rates
39 07.07.11 Reimbursement of TA / DA to serving Employees/ Ex-Employees (Including Retired, Dismissed) in case of Attendance before Courts / Tribunals
40 07.07.11 Revised Fitment Formula for Officers on Promotion to Higher Scales of Pay
46 15.07.11 Staff Housing Loan Scheme to Officers and Award staff – Introduction of Additional Features in the existing scheme
49 26.07.11 Implementation of SAP-HRMS 50 03.08.11 Provisions of Furniture at the
Residence of Officers (Revised Scheme)
52 08.08.11 Group Personal Accident Insurance Policy for all our staff members under Staff Welfare Scheme
54 09.08.11 Dearness Allowance payable for Workmen and Officer Employees for the months of August, September and October 2011
76 21.10.11 Grant of Interest Free Festival Adv. to Staff Members Enhancement in the Max. Limits under the Government Scheme
5
APRIL 2011 – MARCH 2012
5
Cir No Date Subject
78 31.10.11 Job role of Probationary Officers (PO), in the CBS Environment
91 03.12.11 Reimbursement of travelling Expenses to Officers for using their own vehicles for official duty.
101 02.01.12 Joining of Shri B Raj Kumar as ED of our bank
104 04.01.12 Presentation of Memento to staff members at the time of retirement
105 07.01.12 Implementation of SAP-HRMS-Staff work profile
118 19.01.12 Correctness of PAN no. and responsibility of staff members to have PAN Card
120 23.01.12 Promotion policy for officers 122 27.01.12 Staff Vehicle loan scheme to Officers
and workmen employees 131 10.02.12 Presentation of Milestone award to
staff members 141 23.02.12 Joining of new Chief Vigilance Officer
ADM 03
09.04.11 Processing of Electronic Clearing Services (RECS) - Checking / verification of ECS Credits / Debits after posting.
05 19.04.11 Inter Branch / Bank movement of Cash 08 26.04.11 Renewal of Standard Fire and Special
Perils Policy of the Bank’s Own Buildings
14 30.05.11 Banker’s Indemnity Policy for the Financial Year 2011-12
17 03.06.11 Fifth Annual General Meeting of the Bank
20 15.06.11 Debiting of Penalties imposed by RBI - Opening of New BGL Head 96397 (Reconciliable) – SR-II
24 27.06.11 Amendment to Manual of Instructions XIII – Compliance 2009
37 25.07.11 Comprehensive Centralised Insurance Policy for 'Safe, Furniture & Machinery (SFM); Books, Forms, Stationery & Electronic Equipments' kept at Bank's premises all over India
39 03.08.11 Detection of Counterfeit Banknotes – Revised Procedure
56 12.10.11 Dealing with Counterfeit Notes tendered across counter
62 21.11.11 Issuance of TDS Certificates to deductees & entering of details of Form 15G / Form 15H/ Lower Deduction Certificates u/s 197(A) /197(1), in Form 26Q.
64 24.11.11 Reorganisation of Zones (Hubli & Karnal)
66 07.12.11 Reorganisation of Zones (Ghaziabad) 71 13.12.11 Reporting Fridays - Section 42 of RBI
Cir No Date Subject
Act 72 14.12.11 Scheme of Incentives and Penalties of
Bank Branches including Currency Chests based on performance in rendering customer service to members of public
79 11.01.12 Detection of Counterfiet Bank Notes and forwarding to Police authorities
80 18.01.12 Centralisation of TDS Administration at Zonal / Corporate Office with effect from 01.04.12. Implementation of revised system
83 07.02.12 Fire Safety Measures of Generators In Branches / Currency Chests / Administrative Offices
84 14.02.12 Issue of clean / sorted notes to customers and remittance of Cash by branches into Currency Chest
87 27.02.12 Discontinuance of re-issue of 1996 series of Rs.100 denomination Banknotes
92 08.03.12 SFVM – Revised Accounting Procedure for Coin Vending Machine (CVM)
93 10.03.12 Waiver of Cash Handling Charges to RRBs (sponsored by our Bank) accounts maintained at our branches
97 27.03.12 Provision of Burglar Alarm Panic Switches In The Strong Room / Safe Room / Dining Room
101 31.03.12 Issue of Non Sequential Numbered Notes in Denomination of Rs.1000
DEPOSITS Opening Staff Accounts
To facilitate the opening of accounts under staff products correctly, a modification in the procedure for creating Customer Information File (CIF) is given under:
Products under “Staff” category will be available only for “Staff” type CIFs.
Primary CIF (CIF number of the customer used for opening the account) should be a Staff, to get the “Staff rate” benefit.
In Joint accounts (E or S, A or S, F or S and Joint) the primary CIF should be the CIF of staff.
In minor accounts operated by Staff as “Father and Guardian” or “Mother and Guardian” are not eligible for “Staff rate” unless the first name should be staff and the second name can be a minor or any other customer.
6 6
“Date of Birth” field is mandatory to get the “Senior Citizen” benefit in addition to “Staff rate” benefit.
DEP.02/2011-12 dt.08.04.2011
Interest Rates on Savings Bank Deposits
According to the directives of Reserve Bank of India to increase the interest rate on Savings Bank Deposits from 3.50 % to 4.00 % per annum, upward revision on rate of interest to 4.00% per annum on Domestic Savings Bank Deposits, Ordinary NR Savings Bank Deposits [ NRO ], Non Resident [ External ] Savings Bank Deposits [NRE ] and Savings Bank Accounts opened under Capital Gains Scheme 1988 comes into force, with effect from May 03, 2011.
DEP.09/2011-12 dt.03.05.2011
Restriction in the Usage of Withdrawal Slips at Host Branches Transactions through withdrawal slips (accompanied by pass book) in SB accounts is restricted to Home Branch alone and Cash payments up to Rs.10000/- (both SWO “A” & “B”) and Transfer transactions up to Rs.15000/- and Rs.20000/- by SWO ”A” and SWO ”B” respectively can be passed / authorised by SWOs.
However, for transactions exceeding the above limits and up to their delegated powers for both cash and transfer as SWO, they shall pass/authorize, only after BM/ABM manually instruct in writing on the withdrawal slips, with instructions “Please Pass (subject to availability of clear balance)” under his full signature and date.
Where a transaction exceeds the SWO powers, Special Assistant/Officer having the requisite capability level is authorised to approve / pass the transaction.
Cash payment against withdrawal slip (accompanied by pass book) to third party is restricted to Home Branch alone up to a limit of Rs.1000/-. Payment beyond this limit is permitted only under exceptional circumstances based on the merits of the individual case and this is to be authorised by the Branch Manager.
Cash Payment against Withdrawal Slip / Transfer transaction against Withdrawal Slip at a HOST BRANCH are strictly prohibited, even when accompanied with the pass book for Self as well as Third party payments.
DEP.11/2011-12 dt.12.05.2011
Introduction of Redesigned Withdrawal Slip
Top Management Council has approved the removal of the withdrawal slip from the secured stationery items. The redesigned withdrawal slip format is given in the annexure to this circular.
DEP.21/2011-12 dt.06.08.2011
Enhancement of Funds Transfer Limit for Retail Net Banking Customers
Subsequent to the introduction of One Time Password (OTP), the Top Management has permitted for the enhancement of the default Per Day Funds Transfer Limit from Rs.1 lakh to Rs.2 lakhs to all the Retail Net Banking customers (both Individuals & Sole Proprietorship concerns).
Zonal Managers are empowered to enhance the per day funds transfer limit under Retail Net Banking facility up to Rs.10 lakhs (Rupees Ten lakhs only) for Sole Proprietorship concerns, on a case to case basis.
DEP.22/2011-12 dt.06.08.2011
Introduction of Sweep / Reverse Sweep Facility in Supreme Current Account
Based on the feedback received from the field level functionaries, sweep / reverse sweep facility is provided to Supreme Current Account with the following terms:
PLAN MINIMUM BALANCE
MINIMUM THRESHOLD
LIMIT A Rs.1 lakh Rs.2 lakhs B Rs.2 lakhs Rs.4 lakhs C Rs.3 lakhs Rs.6 lakhs
All other terms and conditions regarding sweep / reverse sweep facility provided in Premium Current Account are applicable to Supreme Current Account also.
DEP.23/2011-12 dt.16.08.2011
Redesigned Account Opening Form for Individual/ Joint Accounts The present account opening form for Individual/Joint Accounts has been bifurcated into CIF opening form and Account opening form.
Customer Information File (CIF) Opening Form
7
APRIL 2011 – MARCH 2012
7
CIF opening form is designed to cater to the need of Customer Relationship Management and separate CIF opening forms are designed for
1. Personal CIF with Full KYC (Annexure-1)
2. Personal CIF with Relaxed KYC (Annexure-2) and
3. Non-Personal CIF with Full KYC (Annexure-3)
The authorised official has to certify that he has verified all the given particulars with the original and affix his signature with S.S.No.
Branches linked to Centralised Deposit Processing Centre (CDPCs) have to send the CIF opening forms with the relevant attested copies of KYC documents to the respective CDPCs by the next working day without fail for further processing at CDPCs.
Account Opening Form (Individual/Joint Accounts)
Account opening form is newly designed which is applicable for individuals (either singly or jointly) and is annexed to this circular.
It is a common opening form for Savings Bank, Term Deposit, Recurring Deposit, Current Account and their variants. This form contains four pages.
Account opening forms are to be filed / bound in the order of the Account number and kept under safe custody for future reference, after opening of the accounts. Branches need not send the Account Opening Forms to CDPCs.
Account Opening forms for opening Savings Bank and Current Accounts for non-individuals, like companies, partnership firms, Sole Proprietorships, societies, trusts, etc., have not been redesigned.
DEP.28/2011-12 dt.10.10.2011
Introduction of New Product – SB cum Overdraft Facility (OD) for Non Farmers and Landless Labourers
A new product “SB-cum-OD facility has been launched, for non farmers and landless labourers” for consumption purpose.
Non-farmers, landless labourers and all eligible individuals in rural, semi-urban and urban areas belonging to the lower end segment are the Target Group.
Maximum limit of Rs.10000/- per individual for meeting their contingencies
without insisting purpose / end-use of the credit.
Margin and Security – NIL
Only branches implementing the Financial Inclusion Programme shall implement this product.
Other details of the new product branches shall refer the Annexure to this circular.
DEP.32/2011-12 dt.23.11.2011
Inoperative Accounts Whenever the Branch receives the response from the customer for the “advance notice” sent by the Bank, in case of Inoperative accounts, Branch has to feed the date of the letter (response) in BANCS.
Now, a facility is given for the Branches to enter the customer response date in case of inoperative accounts in CBS, based on customer’s letter, since the status change will be done by the system after one year from the date of response OR 2 years from the date of last operation, whichever is later. Navigation is given in the annexure to this circular.
Salient features of the Inoperative module are enclosed as annexure to this circular.
DEP.33/2011-12 dt.25.11.2011 Back End Updation in CBS – Need to ensure proper checking According to AFI, some of the instances that warranted backend updation are given in the circular, which could have been averted, if the branch officials had ensured proper checking of data input at the time of authorisation.
There will be time lag from the request of branch till back end updation. This may lead to customer dissatisfaction and deficiency in service. Moreover it attracts adverse remarks from Inspecting officials.
Henceforth, request for backend updation will be entertained ONLY in exceptional circumstances, if it is duly recommended by the General Manager of the respective user department and not as a matter of routine.
In order to avoid back end updations, Branches should ensure correct data entry and proper checking before authorisation.
DEP.35/2011-12 Dt.28.01.2012
Foreclosure of Ind Double - Centenary Certificate
8 8
Foreclosure of ‘Ind Double-Centenary Certificate’ is now permitted and suitable enablement has been made at product level (0311-1751) in the system. The existing terms and conditions of foreclosure of term deposit are applicable for this scheme also.
DEP.36/2011-12 Dt.15.02.2012
Opening of “Small Account” Reserve Bank of India has issued detailed guidelines on opening of small accounts. Accordingly, a new product “Small Account” has been introduced. The product profile along with terms and conditions are given in the circular.
DEP.39/2011-12 dt.05.03.2012
KYC requirement and facilitating opening / operation of accounts of Migratory workers The instructions issued by the Government of India, for opening of accounts of the migratory workers are as under:
1. A migratory worker may visit any branch of the bank servicing the area of his/her permanent residence for opening a bank account.
2. The branch will open his / her account on self-certification basis, or on introduction basis, and /or on the basis of the documents made available by the individual including a proof of permanent place of residence, as the case may be, and allow operation immediately.
3. The branch at the time of opening such an account may get the details / proof of permanent place of residence verified through an ‘on-line’ communication to the branch of the bank servicing the area of permanent domicile of the customer, within 30 days of opening of an account, within which the customer may be allowed operations as permissible for ‘small account’ to enable him/her to meet basic day-to-day requirements of funds.
4. On receipt of ‘On-line’ verification of documents, the bank branch will allow full operational facilities in the account, which are available to a normal account.
DEP.41/2011-12 Dt.12.03.2012
Enhancement of Funds Transfer Limit under Retail & Corporate Net Banking Facility Henceforth, SB, CA, OD, OCC accounts are permitted for funds transfer under Retail Net banking or Corporate Net banking.
Funds Transfer Facility has now been permitted to Trusts, HUF, Societies, Clubs, and
Association of Persons etc. These customers shall be provided with Transaction Password on request under Retail Net Banking facility, to be operated by an individual in the official capacity, as Principal or Correspondent or Secretary or Karta (as the authorised person) to do the funds transfer.
Those with Corporate Net Banking (CNB) with multiple level authorisation facility, can do one to one funds transfer, Government Payments like direct/indirect taxes only.
The facility to make bill / merchant payments through aggregators (Bill Desk, Tech Process etc.) is available under Retail Net Banking only.
Branches should obtain an authorisation agreement signed by all the trustees/executive committee members/governing board members (as the case may be) in the format given in the circular as annexure I, from the Trust/HUF/ Society/ Club/ AOPs, nominating a person who will operate the Net Banking facility. The Transaction Password will be given to the authorised person in his/her official capacity for making funds transfer.
In case of Retail Net banking, the debit authorisation in the said account will be confirmed by entering the OTP as a second factor authentication and sent to the registered mobile number of the authorised person.
The revised default per day funds transfer limit, with powers to Zonal Managers to enhance the same are as follows:
Type of Customer Default Per Day Funds Transfer Limit (SB, CA, OD, OCC Accounts)
Revised Funds transfer Limit (Upper Limit) Zonal Managers can permit **
Individuals (Retail net Banking)
Rs.5 lakhs Rs.15 lakhs
Sole Proprietorship concerns (Retail net Banking)
Rs.5 lakhs Rs.20 lakhs
Trusts, HUF, Societies, Clubs & AOP (Retail / Corporate net Banking)
Rs.5 lakhs Rs.25 lakhs
Partnership Firms (Corporate net banking)
Limit applied by the firm under
Corporate net banking subject to the maximum of
Rs.5 lakhs
No Upper Limit - Zonal Managers
can sanction enhanced limit on
BM’s recommendations
Pvt / Public Limited Company (Corporate net banking)
Limit applied by the company under Corporate net
banking subject to the maximum of
Rs.5 lakhs
No Upper Limit – Zonal Managers
can sanction enhanced limit on
BM’s recommendations
9
APRIL 2011 – MARCH 2012
9
** Based on the BM’s recommendation, Zonal Manager can approve the request for the enhanced limit as mentioned above and forward the same to Project Office directly for enabling the limit recommended.
The above funds transfer limits are applicable per CIF per day irrespective of the number of accounts linked to the CIF/mapped to the User. There is no restriction on the number of transactions per day. In the case of Govt transactions, per day funds transfer limit is not applicable for all the above categories.
Staff shall refer the circular for other guidelines / instructions in this regard. Formats of Application for enhancement of per day funds transfer limit from the customer, Branch Recommendation Letter to ZO and ZO sanction letter are given in the annexure to this circular.
DEP.42/2011-12 Dt.16.03.2012
Displaying list of Unclaimed Deposits / Inoperative Accounts Reserve Bank of India advised vide their notification that -
Banks should display the list of unclaimed deposits/inoperative accounts which are inactive / inoperative for ten years or more on their respective websites. The list so displayed on the websites must contain only the names of the account holder(s) and his/her address in respect of unclaimed deposits / inoperative accounts.
In case such accounts are not in the name of individuals, the names of individuals authorized to operate the accounts should also be indicated. However, the account number, its type and the name of the branch shall not be disclosed on the bank’s website.
The list so published by banks should also provide a “Find” option to enable the public to search the list of accounts by name of the account holder.
Banks should also give on the same website, the information on the process of claiming the unclaimed deposit /activating the inoperative account and the necessary forms and documents for claiming the same. Banks are required to have adequate operational safeguards to ensure that the claimants are genuine.
Banks should complete action as above by June 30, 2012 and keep their websites updated at regular intervals.
DEP.43/2011-12 Dt.16.03.2012
Nomination Facility – Witness in Nomination Form Reserve Bank of India has clarified that Nomination forms with respect to Deposits, Safe Deposit Lockers and Safe Custody Accounts, shall be attested by two witnesses, only in case of account holders with Thumb-impressions(s).
Signatures of the account holders need not be attested by witnesses.
DEP.44/2011-12 Dt.27.03.2012
ADVANCES Central Electronic Registry to avoid multiple loans against same security - Reg. The details of steps taken by IBA with regard to Central Electronic Registry, to avoid multiple loans against same security, are outlined hereunder: The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) has been incorporated as a Company for the purpose of operationalising the Central Registry, to facilitate the lenders – Banks and FIs to have an avenue to scrutinize charges created over the securities offered. Notification in this regard has been issued by Central Govt. which has come into effect from 31.03.2011. Central Govt. has also prescribed the Central Registry Rules. Initially, it is proposed to extend the registration system to “Mortgage by deposit of title deeds” and that too prospectively. Guidelines to the branches:
1. With effect from 31.03.2011, all EMs created by deposit of title deeds have to be mandatorily registered with the Central Registry which is in addition to existing legal provisions for stamping and registering of charges as per applicable local stamp / registration laws.
2. The object of the Registration System is to compile data relating to secured transactions which can be searched by any person on payment of fees prescribed.
3. All our branches have to make search with the registry for ascertaining whether the property is free from encumbrances or whether there are any other charges subsisting over the property, before advancing any loan. This will not in any way dilute or do away with the present requirement of obtaining EC / legal opinion/visit to the property etc.
4. Under Central Registry Rules 2011, necessary forms for registration of mortgage and Securitisation / Asset Reconstruction transactions have been prescribed. The same may be made use of by branches.
5. The system is operated online and therefore accessible throughout India and from any part of India. CERSAI will be providing User IDs
1010
and Passwords to the Administrators designated by the Bank..
6. Under Sec.23 of SARFAESI Act, particulars of charge creation to be filed with Central Registry within 30 days of date of creation of charge / mortgage.
7. The particulars of transactions registered with Central Registry shall be kept open for inspection to any person through website during business hours on payment of requisite fee.
8. The necessary fee for each of such aspects viz. creation / modification / satisfaction of charges / securitisation / Asset reconstruction transactions, condone delay charges, fee for inspection and access etc. have been specified by the Central Registry and the same has been placed as an Annexure to this circular.
Branches shall refer this circular for more guidelines.
ADV.07/2011-12 dt.09.04.2011
Categorization of activities under Manufacture or Service under the MSMED Act 2006 The Ministry of Micro, Small & Medium Enterprises, Government of India, New Delhi on Categorization of Activities under Manufacturing or Service, under the provisions of MSMED Act.2006 informed as under:
A) Activities considered as Manufacturing: i) Seed Processing (for Genetic
enhancement) (involving collection of germplasm, cleaning, gravity separation, chemical treatment etc)
ii) Composite unit of Poultry with Chicken (Meat) Processing (Poultry Farm without Chicken (Meat) Processing shall not be classified either as Manufacturing or as Service Enterprise because this is a Farming activity)
B) Activities considered as Service i) Medical Transcription Service, ii) Production of T.V serial and other T.V
Programmes, iii) Ripening of Raw-Fruits under controlled
conditions, (Subject to norms prescribed by Food Safety and Standards Authority of India, Ministry of Health and Family Welfare, GoI)
iv) Service Rating Agency (Rating and grading services across sectors based on set methodology and standards).
In view of the above, branches shall verify the advance portfolio thoroughly and classify all the eligible accounts which are falling under the above said categories properly under MSME sector and required changes shall also be made in the CBS.
ADV.08/2011-12 dt.11.04.2011
Clarifications regarding IND SME SECURE and IB Doctor Plus Schemes Type of securities and margin under IND SME Secure and IB Doctor Plus Schemes are made more explicit as under:
IND SME SECURE Scheme Types of securities
Hypothecation of stocks, work in process, finished goods, book debts, plant & machinery (as applicable) Factory land: Factory land, either freehold or lease hold. In case of lease hold properties, the same should be in select centres like metropolitan cities, State capitals, District Head quarters, approved Industrial Estates etc. where local development authorities of State / Central Governments have leased out such properties on long term lease (residual lease period should not be less than 25 years), with mortgage rights / permission to the lessee from the lessor. Factory buildings: Factory buildings owned by the borrower / guarantor Freehold residential plots and / or residential commercial buildings owned by the borrowers / lease hold properties of State Govt. development authorities like MMDA, DDA, CMDA, NOIDA etc with mortgage rights / permission to lease from the lessor. No agricultural land should be taken as security for this purpose. Properties taken for EM should be in possession of the mortgagor and should not be leased out to third parties. A suitable undertaking to be obtained. Value of RBI bonds, NSC and residual value of plant & machinery shall be accepted as collateral security subject to that the method of valuation of P&M is based on distress value and should be assessed every year.
Margin 25% on stocks and book debts 25% on plant & machinery
11
APRIL 2011 – MARCH 2012
11
10% cash margin on NFB facilities 30% margin on building 75% to 150% coverage of Bank exposure by way of security of fixed assets and / or properties as mentioned above. Where Term Loan facilities are outstanding, the liabilities under Term Loan may be first deducted from the value of securities (P&M, L&B), keeping 25% / 30% margin, as the case may be, and the balance may be reckoned while fixing security coverage for Bank exposure / pricing.
Position with regard to coverage vis-à-vis exposure under the scheme is illustrated by way of an example in the Annexure to this circular. Product code (1441-1651) has been assigned for Base Rate linked working capital accounts under the scheme.
IB Doctor Plus Security Loans upto Rs. 10 lac: Hypothecation of
assets created out of loan amount. No collateral / third party guarantee and to be covered under CGS of CGTMSE Loans above Rs. 10 lac: Hypothecation of assets and LIC policy assigned in favour of the bank or other collateral security, so as to ensure compliance with Loan Policy guidelines in respect of Security Coverage.
ADV.12/2011-12 dt.26.04.2011
Revision in Benchmark Prime Lending Rate Our Bank’s ALCO has approved the increase of Benchmark Prime Lending Rate by 50 basis points (bps) from 13.75% to 14.25% per annum. This revision will be EFFECTIVE FROM 05.05.2011 for the advances linked to BPLR. All other existing guidelines on spread, tenor, re-set clause for fixed Rate, etc., for the BPLR linked advances shall continue.
ADV.16/2011-12 dt.05.05.2011
Review of Base Rate Our Bank’s ALCO approved revision of Base Rate from 9.50% to 10.00% Per Annum with effect from 05.05.2011. There will be no change in spread/ tenor premium and other guidelines except specifically exempted by respective departments. Consequent to the revision of base rate, Interest rates for all floating rate accounts other than exempted category will increase by 0.50%.
ADV.17/2011-12 dt.05.05.2011
1. Financing receivables of Wind Power suppliers 2. Financing against the security and cash flow of
unencumbered wind mills for any bankable proposal
Windmills are installed on a standalone basis as a means of investment considering the tax benefits and income generation. The wind energy suppliers are raising bills on Electricity Boards on monthly basis. Bills are settled over a period of time varying from 45 days to 12 months depending upon the cash flows of Electricity Boards. Considering the time taken for settlement of the bills by Electricity Boards, there is an opportunity for the Bank to lend in the form of bill financing.
Further, it is gathered that sizeable number of windmills are debt free and entrepreneurs are willing to offer these unencumbered windmills as security to the Bank for setting up fresh ventures. This forms another avenue for our Bank to improve our lending. To mobilise new business, two structured schemes have been designed in consultation with Zones viz 1) Financing receivables of Wind Power suppliers 2) Financing against the security and cash flow of unencumbered wind mills. Detailed guidelines are given in Annexure to this circular.
ADV.23/2011-12 dt.06.05.2011
Introduction of Revised Educational Loan application In the present scenario, tracking of students, close monitoring and continuous follow up of educational loans are needed to maintain the asset quality of the educational loan portfolio. Bank’s present educational loan application format has been revised incorporating some additional columns for collecting the following information:
1. A table which denotes the discipline for which the loan is required.
2. Minority details – to collate and report correct information on minority applicants
3. Details of study – affiliation status of the college, duration of the course etc.
4. More information about the employment of the co-applicant/ guarantor
5. Details of the nearest bank to the residence of the student
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6. Details of existing loan accounts availed by the applicant’s family members
7. Name of two persons known to the applicant as reference
8. Consent of the student for cover under group insurance scheme
9. Consent of the applicant for disclosure of credit information
10. An acknowledgement format for handing over to the applicant.
The revised educational loan application is enclosed as annexure to this circular.
ADV.24/2011-12 dt.11.05.2011
Housing Loan limit under Priority Sector According to the instructions of Reserve Bank of India, Housing Loans up to Rs.25 lakh irrespective of location to individuals for purchase / construction of dwelling unit per family, excluding loans granted by banks to their own employees are eligible for classification under priority sector. The above change will be applicable to housing loans sanctioned on or after April 1, 2011.
ADV.25/2011-12 dt.11.05.2011
Procedure to send Confirmation of Balances & Scrutiny of Financial Statements Branches should comply with the below given RBI directions with regard to Confirmation of Banlances -
(i) branches should send confirmation balances in deposit and advances accounts of their entities/ customers directly to the respective auditors when called for and
(ii) as a part of strengthening the credit assessment / monitoring framework of Banks, Branches should ensure that the financial statements of borrowers are reviewed diligently.
ADV.29/2011-12 dt.16.05.2011
Take over of Borrowal accounts from other Banks According to Reserve Bank of India branches shall adhere to the following points while taking over the borrowal accounts from other Banks. Apart from complying of the take over policy of our Bank, branches shall ensure the following RBI guidelines,
1. credit requirements of the borrowers are independently assessed by the branches while taking over accounts from other Banks
2. formalities, such as, fresh documentation, transfer of securities etc., between the transferor Bank and the transferee Bank are expeditiously completed and
3. credit report obtained by the branches from the transferor Bank should contain the adverse features, if any, observed by the transferor Bank.
If we are the transferor Bank we have to specifically indicate the adverse features, if any, observed, in the credit reports issued by us.
ADV.30/2011-12 dt.16.05.2011
Documentation - linking to Base Rate on Renewal of existing facilities with BPLR based system.
The Base Rate system would be applicable for all new loans and for those old loans that come up for renewal. Existing loans based on the BPLR system may run till maturity. For all new accounts and the accounts which come for renewal, the Base Rate based interest rate is applicable. According to our Manual of Instructions - XVI on Documentation 2008 –
“so long as the conditions of sanction remain the same and D‐11 is being obtained, there is no need to obtain fresh documents (including DPN) for renewal of facilities”.
Thus, so long as the terms and conditions of sanction remain the same, there is no need to obtain fresh documents (including DPN) for renewal of facilities. But, as Base Rate based interest rate will be applicable, on renewal of limits, (which were earlier under BPLR based system) branches shall obtain an Undertaking letter as Annexed to this circular, provided there are no other changes in the existing limit, security etc.,
ADV.36/2011-12 dt. 25.05.2011
Automation of ARC Transactions To find out a permanent solution for the existing practice of passing manual entries for the second leg of transactions on the same day of recovery made for a particular ARC account, a temporary solution for automation of ARC transactions has been introduced by PO. The document for modified accounting procedure is attached as Annexure to this Circular.
13
APRIL 2011 – MARCH 2012
13
All manual transactions will be handled in EOD programme by Project Office and branches need to take care of the following only:
1. Debit ARC Collection account and Credit the ARC Loan/ODCC account for the Write off/Waiver Portion (if any) before closure of the loan.
2. SHOULD NOT VOUCH for any other entries. Once permanent solution Write off/Waiver module is introduced, the branches need not carry out any manual vouching for ARC transactions.
ADV.38/2011-12 dt.28.05.2011 OTS Policy for Farm Mechanisation / Tractor Loans Board has approved an OTS Policy for Farm Mechanisation/Tractor Loans as follows as one time measure: 1. Name of the Policy OTS Policy for Farm Mechanisation
2. Coverage/ Eligibility The OTS policy is exclusively for agricultural farm mechanization loans as outlined hereunder:
i. All Farm Mechanisation loans which were NPA as of 30.06.2010.
ii. All tractor loans which were rescheduled/rephrased before 30.06.2010 and on being classified as NPA subsequently.
iii. Tractor loans which were disbursed before 30 06 2010 but slipped to NPA category subsequently
3. Minimum Recoverable amount (MRA) and the sanctioning authority
i. Branch Managers irrespective of scale: Book Balance as on date of NPA
ii. Zonal Managers. : 90 % of the Book Balance
iii. General Managers at HO: 75% of the Book Balance.
4. Appropriation of Subsidy Extant guidelines issued from time to time shall be followed while appropriating the subsidy under Government sponsored Schemes. The Book balance for the purpose of OTS will be book balance net of subsidy eligible for appropriation. 5. Other Term loan/crop loan of the same farmers If there are other term loans/crop loans of the same farmers who availed tractor loan, powers delegated for OTS settlement for the respective loans can be exercised and a comprehensive
settlement reached by the appropriate sanctioning authority. 6. Period of validity
Valid till December 2012. 7. Implementation
i. The provisions of this OTS policy should be informed to the farmer loanees who will be told clearly that such a concessional treatment is available only for those coming forward to repay the entire amount before December 2012. All the loanees should be approached personally by the branch level staff for sensitizing the farmers of the special concession available for a limited period.
ii. For continuing the Agricultural operations, branches can consider eligible crop loans as per extant guidelines as denial of crop loans will drive farmers to other agencies. Branches shall refer this circular for
further guidelines / instructions. ADV.44/2011-12 dt.08.06.2011
Modifications in Structured Loan Product - IB Star Rice Mill
Certain modifications were approved in order to make the loan product IB Star Rice Mill more customer-friendly. Gist of the changes in the product features are as under:
1. Rate of interest has been fine tuned so as to be competitive with other banks.
2. Norms relating to collateral security have been relaxed for accounts with combined rating of BBB and above.
3. Requirement of CMA data is waived for accounts with limits upto Rs.1 crore.
4. Method of Assessment has been made more flexible.
5. Need to ensure compliance with close monitoring guidelines is underlined to ensure Standard Asset quality.
6. Complete details of which are given in Annexure to this circular.
ADV.47/2011-12 dt.13.06.2011
Restructured Advances -- Additional provision requirement Reserve Bank of India as per Monetary Policy Statement for the year 2011-12, decided to
1414
enhance the provisioning requirements on certain categories of non-performing advances and restructured advances as follows:
1) Restructured accounts classified as standard advances will attract a provision of 2 per cent in the first two years from the date of restructuring. In cases of moratorium on payment of interest/principal after restructuring, such advances will attract a provision of 2 per cent for the period covering moratorium and two years thereafter (as against existing provision of 0.25-1.00 per cent, depending upon the category of advances); and
2) Restructured accounts classified as non-performing advances, when upgraded to standard category will attract a provision of 2 per cent in the first year from the date of upgradation (as against existing provision of 0.25-1.00 per cent, depending upon the category of advances).
Some examples are given in the Annexure to this circular. Based on the restructured template data submitted by the branches, the particulars as per the Format (I) and (II) attached to this circular herein will be pushed to the branches by CDC as at the end of every quarter. The Branches selected for quarterly review should obtain auditor’s certificate as per the Formats.
Branches need not make any provision at their end. The Auditor signed certificates should be sent to Zonal office/HO: Credit division. Zonal office has to consolidate the data for the Zone (including non-audit branches) and submit the statement to HO: CREDIT for consolidation and submission to HO accounts for arriving at the provision requirements.
ADV.48/2011-12 dt.16.06.2011
IB Swarna Mudra- Revision of Notional Liability Amount for Gold Coins
In order to keep this Notional Rate in line with the prevailing market price of gold, Notional Rate has been revised from the existing Rs 825/- per Gram to Rs 2300/- per gram, applicable from 1st July 2011.
Branches shall apply this new Notional Rate of Rs 2300/- per Gram for the sales / transfers
effected and also note to show the balance of gold coin stock held at this new notional rate only.
ADV.52 /2011-12 dt. 23.06.2011
Technology Upgradation Fund Scheme - Tufs (New) Office of the Ministry of Textiles provided new Reporting formats viz. R1, R2, R5, R6, R7, R8 with respect to Technology Upgradation Fund Scheme and the formats are annexed to this circular. Branches have to submit the details in these formats to HO, Credit Division for Non-SSI accounts and to HO/ MS & ME Department for SSI accounts through Zonal Offices for obtention of Unique ID (UID) No. without which claims for subsidy will not be accepted by MoT. As UID will be allotted by the Office of the Textile Commissioner on first come first served basis, Branches should submit the details in the prescribed formats.
ADV.67/2011-12 dt.19.07.2011
IBA approved list of Transport Operators– 31.03.2011
IBA Approved List of the Recommended Transport Operators as on 31.03.2011 is annexed to this circular.
ADV.68/2011-12 dt.22.07.2011
Obtaining Second Legal Opinion for advances of Rs.50 lacs & above
Based on the feasibility study to emphasise genuineness and enforceability of the security, Top Management Council directed that Second Legal Opinion be obtained for securities/ properties to be charged to advances of Rs.50 lacs and above.
Branches shall henceforth follow the stipulated guidelines and obtain Second Legal Scrutiny Report in case of advances of Rs.50 lacs and above.
ADV.71/2011-12 dt.27.07.2011
Management of Subsidy in Core Banking Solution Maintenance of subsidy on different loans/running accounts is made easy by introduction of separate module. In this module, management of subsidy can be done through the following menus: • Subsidy Claim, • Receipt of Claim, • Appropriation of Subsidy and
15
APRIL 2011 – MARCH 2012
15
• Subsidy enquiry
The loan products and running account products (OD/OCC) for which Subsidy can be entered and maintained are listed in the circular. Detailed screenshots and guidelines are given in the circular.
While opening loan / running accounts, their product codes should be checked to find out whether the product selected for the new account is under correct “subsidy-enabled” product.
If any subsidy eligible loan is opened under any other product code wrongly, subsidy processing can be done only if the product code is changed from the existing code to one of the suitable subsidy enabled product codes. Branches should use the subsidy module correctly for better management of subsidy and correct MIS.
ADV.72/2011-12 dt.27.07.2011
Implementation of “Write off / Waiver Module” in CBS w.e.f.01.08. 2011- i) Provision in Bancs to fill up OTS amount for closure of Loans/Advances and ARC accounts – (ii) Automation of All ARC Transactions.
Closure of loan/advance accounts under OTS involving write off / waiver has been made simple with the implementation of the “Write off /Waiver Module” in CBS.
Under the simplified system, provision has been made to feed the Settlement (OTS) Amount in the Loan Closure Menu itself. System has been enabled now to vouch automatically for the waiver portion to the debit of Interest on loans/CC/OD and debit of Write off Claim Account for the write off portion. Such transactions will be available in the VVR report. Branches should not make any manual transactions for these amounts of compromise.
The above procedure is applicable to all the advances/NPA or Standard and ARC accounts as well. Branches shall refer the circular for other guidelines. Project office has ported screen shots showing new procedure on the write off/waiver module, in the CBS Help-Desk.
With the introduction of “Write off/Waiver Module” in CBS, all the ARC transactions are now fully automated. There is no need to make any manual vouchers for closing of ARC accounts. The system will take care of all vouching, provided the settlement amount is correctly entered in the closure menu.
ADV.77/2011-12 dt.28.07.2011
Reverse Mortgage Loan Scheme – Revised Annuity Amount
Rate of Interest for Reverse Mortgage Loan accounts (fresh sanctions as well as for existing accounts with reset on or after 01.08.2011) has been revised to 11.25% Fixed with effect from 01.08.2011.
The above revision in ROI is applicable only for fresh sanctions made on or after 01.08.2011 and for existing accounts with reset on or after 01.08.2011.
The monthly annuity tables for various rates of interest (ranging from 9.50% to 13.00% with 0.25% variation) are given in Annexure 1 & 2 of this circular. For details regarding Reverse Mortgage scheme, branches shall refer the following circulars: 1. Circular No.ADV.34/2007-08 dated 04.08.2007 2. Circular No.ADV.56/2007-08 dated 17.10.2007 3. Circular No.ADV.70/2007-08 dated 03.01.2008 4. Circular No.ADV.66/2009-10 dated 10.08.2009.
ADV.86/2011-12 dt.22.08.2011
Cent percent identification of NPAs by the CBS System
Project Office is working on a solution for ensuring identification of NPA with Agri Crop Loan portfolio also to be System compliant. Hence, all the branches should mark the due dates in all the crop loan accounts to enable the System to take over the function. Branches shall take the guidance of respective Zonal Office / HO:RBD and correctly port the due dates so as to ensure error free identification of distressed loans within the crop loan segment as well. Many concessions have been granted by the respective District Consultative Committee / State Level Banker’s Committee (SLBC) including repeated restructuring / rephasement to the farming community, wherever natural calamities have affected the area. Branches have to take care while marking the due dates, as wrong information will inflate NPAs. Branch Managers shall contact the farmers immediately and guide them for the renewal of the facilities, as many of the farmers have delayed/ defaulted repayment expecting another debt relief.
ADV.87/2011-12 dt.05.09.2011
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OTS Proposals In Accounts Backed By Securities
Management Committee of Board (MCB) at the meeting held on 27.08.11 advised the following:-
“wherever the recommendation is to accept lesser amount than the value of the property as per the valuation report, the same must be accompanied by a report of a committee consisting of the Branch Manager, Loan Officer of the Branch and a representative from Zonal Office about the condition of the property and the need to accept a lesser amount and the report of the committee be placed to SAC and also MC”
Branches should ensure strict compliance of the above directions of the MCB while submitting proposals for sanction of OTS in NPA Accounts.
ADV.91/2011-12 dt.14.09.2011
Additional Support Measures to MSE Sector
Board in its meeting held on 26.08.11 has approved the following additional support measures to Micro & Small Enterprises Sector -
1. The loan for purchase of Genset on softer terms linked to Base Rate with 10% margin for a period up to 30 months with reduced interest rate for Micro & Small Enterprises (being a Priority Sector) permitted as under-
Rate of
Interest-Existing
Rate of interest permitted for Micro &Small Enterprises
(MSEs)
Rate of interest
permitted for Medium
Enterprises Loans for GenSet
BPLR- 1.5% (13.50% at
present)
BR + 1.75 + 0.5 (13.00% at
present)
BR + 2.25 + 0.5 (13.50% at
present)
2. As per SME Debt Restructuring Mechanism Banks may restructure the accounts which are classified under Standard, Sub-Standard and Doubtful category. The SME accounts which are appearing in SMA-1 to be subjected to necessary restructuring as per guidelines on SME Debt Restructuring (Ref: HO Circular No: ADV.117 dated 10.11.08) and such restructuring exercise to be completed before the account turns into SMA-2 to avoid any slippage.
3. The Reliefs & Concessions under Debt Restructuring Mechanism for Sick SMEs have been communicated vide HO: MSMED Circular No.ADV.117 dated 10.11.08. Further Reliefs &
Concessions linked to Base Rate to Micro & Small Enterprises (being a Priority Sector) in partial modification of the earlier guidelines are permitted as given in this circular. Staff may refer the circular for further details.
ADV.93/2011-12 dt.14.09.2011 Revised IBA Educational Loan Scheme - 2011
The revised IBA Educational loan scheme duly incorporating the modifications in the existing scheme is enclosed as Annexure-1 to this circular.
Other important guidelines/clarifications from IBA are enclosed as Annexure-2 to this circular.
Zonal Offices/ Retail Banking Segments/ Branches shall implement the scheme in letter and spirit and process the proposals strictly as per the revised guidelines.
ADV.94/2011-12 dt.16.09.2011
Home Loans and NRI Home Loans with variable ROI - Extension of repayment period on upward revision of interest rate
In recent times, due to RBI raising the key policy rates at various times, our interest rates on advances have also been revised upwards resulting in increase in the EMI commitment of the borrowers, particularly for Home Loan borrowers who have opted for variable ROI, causing distress.
In order to address the distress of these borrowers, Government of India has advised Banks to provide longer repayment periods. Accordingly, our Board has permitted extension of repayment period of the loan instead of increasing the EMI in respect of entire Home Loans and NRI Home Loans with variable Rate of Interest, subject to the following conditions:
• Maximum repayment period of the loan should not exceed 35 years including the extension granted.
• The enhanced repayment period should not go beyond the age of 70 years of the applicant & co-applicant.
• If the repayment period goes beyond 35 years or age of the applicant / co-applicant goes beyond 70 years, the enhancement of the repayment period should be restricted to the proposed guidelines as above and EMI is to be re-fixed accordingly.
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APRIL 2011 – MARCH 2012
17
• There should be no revision of Rate of interest due to elongation of the repayment period. In other words, in a Home Loan with 5 years’ repayment, even if the revised repayment period extends to 7 years, the ROI will be that as applicable for the loan with 5 years repayment only.
• Notice of enhancement in repayment period is to be communicated to the borrower.
• Borrower may choose to remit higher EMI without any additional charges (pre-payment charges).
As the revision in repayment period is being made applicable for entire class of Home Loans and NRI Home Loans with variable ROI, the accounts with such extension in repayment period due to revision of interest need not be classified as ‘restructured accounts’.
The revision in interest rate / repayment period is to be communicated to the respective borrower in the format enclosed as Annexure to this circular.
Wherever the applicant does not fulfill the above conditions, the EMI should be re-fixed for the residual period of repayment and the borrower should be advised in writing by the Branch Manager about the change in interest rate as well as change in EMI. (for specimen letter branch shall refer Circular No.ADV.39/2009-10 dated 30.06.2009)
Other terms and conditions for the respective product remain unaltered.
ADV.96/2011-12 dt.17.09.2011
“HOME LOAN 2011 SCHEME” for Residents and NRIs
“HOME LOAN 2011 SCHEME”, has been introduced, with effect from 01.10.2011, with the following special features:
Reduced Rate of Interest
Reduction in number of slabs
No separate slab for Home loans above Rs.200 lakhs.
Reduced Rate of interest for Home Loans sanctioned under Commercial Real Estate exposure
Reduced margin requirement.
All fresh Home Loans sanctioned on or after 01.10.2011 can be considered under “Home Loans 2011 Scheme”. Details of the Interest rate and Margin are given in this circular.
Except rate of interest and margin, all other norms of our existing Home Loan / Plot loan / IB Home Improve scheme shall continue to be applicable for the “HOME LOAN 2011 SCHEME” also.
ADV. 102/2011-12 dt.1.10.2011
Enhancement of advance rate per gram of Jewels Advance rate per gram of Jewels has been revised upward, with effect from 08.10.2011 as follows:
Rs. 1750/- per gram (presently Rs.1450/- per gram) or 70% of the market rate whichever is lower for 22 carat fineness.
Rs. 1800/- per gram (presently Rs.1475/- per gram) or 70% of the market value whichever is lower for Hall Mark Jewels of 22 carat fineness/ gold coins of 24 carat fineness.
ADV.106/2011-12 dt.08.10.2011
Educational Loan (Non IBA Scheme) – for pursuing higher education in India and Abroad The Revised IBA Educational Loan Scheme- 2011 has been communicated vide our circular Adv.94/2011-12 dt.16.09.2011. Accordingly, students who secured admission under Management Quota are not eligible to avail educational loan under the IBA scheme. Hence to provide an alternative opportunity to such segment of aspiring students to continue their education, a new scheme “Educational Loan (Non IBA Scheme)” outside the purview of the existing IBA Educational Loan scheme has been formulated.
The scheme guidelines are enclosed as Annexure to this circular.
The New Product Codes have been allotted for the Educational Loan (Non IBA Scheme).
Zonal Offices / Retail Banking Segments should mention the product code and IB code in the sanction tickets to facilitate correct classification by branches.
ADV.107/2011-12 Dt.10.10.2011
Accepting OTS less than the value of Security - Submission of visit report by a Team of three officers relaxed for small loan NPAs The stipulation of spot visit, which was communicated earlier, by the team of three officers and submission of the visit report (wherever OTS amount is less than the value of securities), is relaxed in respect of the following categories:
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a) In respect of all NPA accounts, where the book balance is upto Rs.10 lakhs OR where the total outstanding is less than Rs.50 lakhs and
b) Where the security is an agricultural land.
In respect of the above exempted categories, field level personnel shall continue to be guided by the valuation report furnished by the independent valuer while finalizing the OTS amount. Branches and Zonal Offices shall ensure realizing better value for the assets charged to the Bank as security while considering the OTS proposals.
ADV.111/2011-12 Dt.18.10.2011
Repayment of Loans of Non-Resident by a Close Relatives Resident Indian Branches shall take note that repayment by resident relative was earlier permitted only for Home Loans granted to Non-Resident Indian and now it is extended to any loan granted to Non-Resident Indian in accordance with Regulation 7 of the Notification No.FEMA/4/2000-RB.
For meaning of ‘relative’ u/s 6 of the Companies Act, 1956 and Regulation 7 of the Notification No. FEMA / 4 / 2000-RB, branches shall refer the Annexure to this circular.
ADV.114/2011-12 dt.24.10.2011
Scheme of 1% interest subvention on Home Loans – Extension of scheme for the Financial Year 2011-12 and revised guidelines Housing loans with limits -
a) upto Rs.10.00 lakhs sanctioned between 01.10.2009 and 31.03.2011 and disbursed between 01.10.2009 and 31.03.2012, where the cost of unit does not exceed Rs.20.00 lakhs and
b) upto Rs.15.00 lakhs sanctioned and disbursed between 01.04.11 and 31.03.12, where the cost of unit does not exceed Rs.25.00 lakhs
are eligible for 1% interest subvention, subject to complying with other terms and conditions of the scheme.
The disbursement data extracted from CBS for this financial year will be uploaded every month, in the Template and will be intimated through “Help Desk” message. Branches have to fill up necessary additional particulars in the Template and submit the claims, through Zonal Office. If any eligible Home Loan account / disbursement do not appear in the Template (may be due to error in product code, etc.) branches have
to prepare subsidy claim for such account manually through Zonal Office.
ADV.115/2011-12 dt.02.11.2011 Frauds perpetrated on the Bank by producting fake / fudged financial statements In some cases, Credit assessment was done by the Branch as well as by Zonal Office on the strength of glossy printed balance sheets (annual reports) which do not contain the signatures of the Directors of the borrower company and the auditors. The same is fraught with the risk of the parties cheating the Bank by submitting fudged Balance Sheets and financial statements.
It is reiterated that –
Wherever certificates from the Company Secretary / Chartered Accountant / Cost Accountant/ Stock Auditors are submitted, the Institute registration number and full address should be obtained. Wherever Certificates from CAs are obtained, the same need to be verified with the CAs concerned as to their genuineness. The name, status of membership and address of the CAs need to be verified from the ICAI site http://220.227.161.82/locm.asp. Wherever the financials certified by CAs are found to be fudged, procedural guidelines of the Bank for reporting their names as third party entities involved in frauds, to IBA (through HO/Inspection Department) should be complied with. While obtaining Financials / Balance Sheets also, the above procedure is to be adopted to avoid the risk of the parties cheating the Bank by submitting fudged Balance Sheets and financial statements.
ADV.116/2011-12 dt.03.11.2011
Disposal of applications seeking finance -- web based status view facility to applicants of credit limits The facility of tracking the status of the loan applications submitted by the customers through our Website under ‘Loan application Status’ will cover applications for credit limits of Rs.10 lakhs and above excluding Loan Against Deposits.
A screen has been developed to enable branches to enter the details of applications as and when received from applicants and to provide an ‘Application ID’ and ‘pass word’ which will be system generated, to each applicant. The screen is available through our Help Desk. The data thus fed and updated by various branches will be captured by HO:TMD and ported in our website on daily
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basis. Proposals without the ID No. shall not be taken up for consideration at Zonal Office/Head Office.
The procedure to be followed and Action Points for Branch / Zonal Office / Head Office functional Credit Departments are given in this circular.
ADV.117/2011-12 dt.03.11.2011
Take over policy of borrowal accounts The revised guidelines on POLICY ON TAKE OVER OF BORROWAL ACCOUNTS are detailed below: a) Good independent market report
b) Statement of account with existing banks for One year reflecting satisfactory operations, to be obtained.
c) Statement of account along with the Sanction letter of existing banker to be obtained to confirm that the repayment of loan is in order and is as per the sanction terms.
d) Credit Information Report (CIR) can be obtained from CIBIL, EXPERIAN, EQUIFAX, HIGHMARK in lieu of credit opinion from banks.
e) Standard Asset Classification for the last two years with the existing banks. Certificate / credentials to that effect to be verified from the banks.
f) Account should have recorded net profit after tax for the previous two years out of 3 years and business conditions to indicate improvement in profitability, unless the account is in operation for less than three years.
g) Satisfactory Credit opinion from the existing bank / CIBIL to be obtained before release of facilities;
h) Account operations with that bank to be verified for a minimum period of one year preceding the date of proposal for take-over. (At the time of submission of proposal, if Credit Opinion of the other bank is not available, at least account operations should be verified for a period of two years and credit opinion is to be obtained before release of sanctioned facilities).
i) Once the system of obtaining CIBIL report gets stabilised, Credit Information Report (CIR) can be obtained from CIBIL in lieu of credit opinion from the banks
j) Agricultural loans: Request for take over with immediate enhancement/Request for take over from borrowers hailing from or having their operations at service areas other than the operational jurisdiction of the branch are to be entertained with caution. Services of credit investigation agencies with approved legal framework may be utilized to enlist
and ascertain the information/market report of the borrowers.
Entry into consortium / multiple banking arrangements in a new account need not be regarded as a take-over. In a running consortium / Multiple Banking arrangement, our Bank may propose to takeover the existing / fresh share of lending from the existing member Banks and such entry is subject to the above conditions.
Details regarding Delegated Powers for Approval of Takeover of different type of accounts; AGRICULTURAL ADVANCES / home loans - Takeover Guidelines, Relaxation in Norms and Other Terms etc are given in this circular.
These guidelines supersede the guidelines prescribed in Loan Policy 2011-12 dt.31.03.2011.
ADV.119/2011-12 dt.08.11.2011
Issuance of Certificate for the purpose of getting Visa Branches should exercise caution while issuing solvency / capability certificate for the purpose of getting visa and ensure that -
a. KYC norms are fulfilled and there are no deviations.
b. Loan against deposit on the same day of deposit itself may be avoided. However, to ensure that denial of loan against deposit on the same day would not infringe upon the depositors’ right of loan over their deposits and would not violate RBI guidelines.
c. Details of amount of Loan against deposit/s, since when the customer is banking with our bank to be mentioned in the solvency /capability certificate.
ADV.120/2011-12 dt.08.11.2011
Renewal of MoU with CRISIL for Rating of MSME Customers
MoU with CRISIL has been renewed for a further period of 2 years (i.e.) from 03.07.2011 to 02.07.2013 for rating of MSME clients of our Bank.
CRISIL SME Rating Scales- (A) NSIC– CRISIL Rating Scale for Small scale
units. These ratings indicate financial strength (on a three point scale from A to C with A being High and C being Low) and Performance capability (on a five point scale from 1 to 5 with 1 being the Highest and 5 being Poor). 75% of rating fees for SSIs (now MSEs) subsidized by NSIC to encourage ratings.
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(B) Credit rating Scale for larger SMEs- CRISIL awards rating for larger SMEs on 8- point scale (i.e) SME-1 to SME.8 with SME-1 being the Highest rating and SME-8 being the Default.
The rating scale and rating fee structure of CRISIL are furnished in Annexure I & II of this circular respectively.
ADV.123/2011-12 dt.01.12.2011
Cash Credit Limit to Self Help Groups (SHGs) Henceforth, all SHGs will be sanctioned only with Cash Credit Limit and the existing term loans also shall be converted into cash credit limit, as it will avoid repeated documentation which involves lot of activity for the groups as well as for the branches.
The detailed operational guidelines for converting the existing SHG term loans into Cash Credit accounts and for issuing fresh Cash Credit limit are given in the Annexure to this circular.
Other terms and conditions:
• At the time of enhancement/renewal of the existing CC limit, branch should update the SHG-Info card.
• Documents to be obtained are D2, D11, D102, D 107 (for subsidy linked loans), D7, D3, F157, F158, and F165.
• No cheque book should be issued to the CC account. The amount as and when requested by the SHG should be debited in the CC account and credited to SB account of the group, from where through withdrawal slip supported by group resolution the amount may be permitted to be withdrawn by the SHGs.
• SHG should be allowed to maintain both the SB and CC account. Savings and credits other than loan repayment should be routed through the SB account of the group. Only loan repayment should be routed through CC account.
• CC limit can be enhanced only at half yearly/yearly intervals.
• The CC account should be reviewed once in six months and renewed once a year.
Branches shall refer the circular for further guidelines.
ADV.127/2011-12 Dt.17.12.2011
"Weaver Credit Card" Scheme -Details Communicated by IBA “Weaver Credit Card scheme” has been approved for implementation in our Bank. As per scheme guidelines, the Credit Card to be issued will
serve as an identity Card for the Weaver along with a Pass Book for recording the transactions. The salient features of the “Weaver Credit Card Scheme” are as per Annexure to this circular.
Branches should extend finance through these Product Codes only-
LOAN PRODUCT 5440-0001 – IB Weaver Credit Card OCC PRODUCT 1511-1651 – IB Weaver Credit Card
Branches shall refer the circular for Operational guidelines.
ADV.128/2011-12 Dt.19.12.2011
Identification of NPAs - Flagging & Deflagging of NPA A/cs- Authorisation to ZMs for A/cs upto Rs 10 lakhs and GM (R&L) for A/cs exceeding Rs 10 lakhs
Accounts identified by the CBS System as NPA (under “New IRAC” Column in CBS) should be confirmed/classified as NPA by the Branches (under Column “Old IRAC” in CBS).
If the branch does not want to flag an account as NPA for any justifiable reasons, then, prior permission should be obtained from Zonal Manager / General Manager (R&L) as per the following cut off limit:
1. Zonal Manager is empowered to authorize for non-flagging of accounts with book balance upto Rs 10 lakhs pertaining to the branches under his/her control.
2. For accounts with balance exceeding Rs 10 lakhs, ZM will recommend to GM(R&L) for non-flagging. ZM will route the proposals (with full details of the account and specific recommendations on the justifiable reasons for non-flagging), through DGM (Inspection) Corporate Office, Inspection Department, who is the Convenor for the Committee of General Managers(CGM) for Non-flagging
3. DGM (Inspn) will place the proposals for Non-flagging to the CGM, consisting of GM(R&L) as Chairman and GM (CR) and GM (IED) as members. The decision of the CGM will be conveyed by GM(R&L) to ZMs/Branches.
Branches should submit to their respective Zonal Managers for the above prior permission for non-flagging, well in advance, immediately after an account slips down from SMA-1 to SMA-2 furnishing specific reasons/recommendations for non-flagging.
Once the System flags the account as NPA, no change (deflagging) can be effected on
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the asset classification, unless all the arrears of interest and principal are paid; If the deficiencies, due to which such account has to be flagged as NPA are rectified fully, branches themselves can deflag such accounts after getting concurrence from the respective Zonal Manager who is the Validation Authority for ensuring the correctness of Asset Classification of all NPAs pertaining to the Branches under his/her control. For such Upgradation / deflagging, no prior permission from Corporate Office is required.
ADV.133/2011-12 Dt. 22.12.2011
“Home Loan 2011 Scheme” – Extension of the Scheme to Existing Home Loan Borrowers
The existing Home Loan / Plot loan borrowers with Variable ROI and Fixed ROI (including home loans sanctioned under commercial real estate exposure), whose accounts are in ‘Standard’ category, may exercise an option to move to our HOME LOAN 2011 SCHEME, by paying a one-time fee of 1.15% (inclusive of service tax) on the balance outstanding, subject to complying with the following conditions:
If the existing fixed ROI borrower opts for shifting to Home Loan 2011 scheme, only variable ROI under the scheme will be permitted.
The borrowers who are sanctioned with finer ROI are not eligible for such finer rate on shifting to Home loan 2011 scheme.
Before according permission, the overdues, if any, in the account is to be recovered fully and the account must be regular.
obtain the undertaking letter from the borrower/s
Manually debit the loan account by one time processing fee of 1.15% of balance outstanding and the same is to be recovered from the borrower, before the change of Product Code.
Branches shall refer the circular for further details. ADV.134/2011-12 Dt. 23.12.2011
Home Loans – Withdrawal of Pre-closure Charges Pre-closure charge for all kinds of Home Loans (Home Loans, Plot Loans & Home Improve) has been abolished. All other norms of the respective schemes remain unchanged.
ADV.138/2011-12 Dt.02.01.2012
Sanctioning of Retail Loans in bulk / to a group of borrowers – Policy guidelines
The policy guidelines for sanctioning of Retail Loans in bulk / to a group of borrowers are applicable for -
Retail loans sanctioned to a group of borrowers (employees of a company, etc.) – ‘Group of borrowers’ means more than 5 borrowers for applicability of this policy guidelines.
Home Loans sanctioned to allottees in a Project developed by a builder / developer / Development Authority, if the number of units in a particular project is more than 5 and / or our finance is for more than 20% of the total area of the project.
Branches shall refer this circular for other guidelines / instructions.
ADV.140/2011-12 Dt.03.01.2012
Issue of acknowledgment of Loan applications to MSME borrowers
According to RBI, banks should mandatorily acknowledge all loan applications, submitted manually or online, by their MSME borrowers and ensure that a running serial number is recorded on the application form as well as on the acknowledgement receipt.
ADV.141/2011-12 Dt.05.01.2012
Educational Loan – System generated product change and repayment schedule regeneration
The procedure adopted by the system for change of product for educational loans from simple interest product to compound interest is as below:
One month prior to the Principal repayment start date, System will
Capitalise up-to date interest. Shift the entire interest bucket to the principal bucket. Regenerate the repayment schedule under EMI Change the product from simple interest product to
compound interest product in respect of all the accounts for which Principal repayment start date commence from 05.02.2012.
Generate report of list of accounts wherein product change has been effected.
Notice to customer for revised EMI will be pushed to branches on daily basis. Branches have to take printout of notices and send the same to customers.
ADV.142/2011-12 dt.10.01.2012
Educational Loan – Uniform Loan Policy for Hostel and Mess charges
With regard to IBA educational loan scheme, IBA has clarified that ‘Reasonable lodging and boarding charges will be considered in case the student chooses / is required to opt for outside accommodation’.
Since the fee structure has not been stipulated for hostel and mess charges by
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Government / Govt. approved regulatory bodies, our Bank has accorded approval for Uniform Hostel and Mess charges as below:
Maximum Hostel and Mess Charges** (Areas where College/ Hostel is located)
Major A Class Cities Area I Other Places Upto Rs.60,000 Upto Rs.50,000 Upto Rs.40,000
** Policy rates (Maximum Hostel and Mess charges as above) or Hostel and Mess charges prescribed by the colleges whichever is less is eligible for consideration.
In order to bring flexibility in terms, in genuine and needy cases relaxation can be considered on a case-to-case basis as below:
1. Upto 10% in the maximum charges by the Zonal Manager concerned.
2. Upto 20% in the maximum charges by the Functional General Manager at Corporate Office.
ADV.144/2011-12 dt.20.01.2012
2% Interest Subvention Scheme and 3% additional incentive Subvention for Short-Term Crop Loans disbursed during 2011-12
Reserve Bank of India has issued notification for 2% Interest subvention Scheme and 3% additional subvention as an incentive to those farmers who repay their short-term crop loans as per schedule in 2011-12. Salient features of the notification are: 2% Interest subvention:
Government will provide interest subvention of 2% p.a to Banks in respect of short-term production credit up to Rs.3.00 lakhs provided per farmer during the year 2011-12.
This amount of subvention will be calculated on the crop loan amount from the date of its disbursement / drawal up to the date of actual repayment of the crop loan by the farmers or up to the due date of the loan fixed by the banks for the repayment of the loan, whichever is earlier, subject to maximum period of one year.
This subvention will be available to Banks on the condition that they make available short-term production credit up to Rs.3 lakhs at ground level at 7% p.a.
Additional 3% incentive subvention to prompt paying farmers who repay their short-term production credit as per schedule:
Government will also provide additional incentive subvention of 3% p.a. to Banks in respect of those prompt paying farmers who repay their short-term production credit within one year of disbursement / drawal of such loans.
This subvention will be available to such farmers on the short-term production credit up to a maximum amount
of Rs.3.00 lakhs availed of by them during the year, from the date of disbursement /drawal of the crop loan up to the actual date of repayment by farmers or up to the due date fixed by the bank for repayment of crop loan, whichever is earlier, subject to a maximum period of one year from the date of disbursement.
This additional incentive subvention will be available to Banks on the condition that the effective rate of interest on short-term production credit up to Rs.3.00 lakhs for such farmers will now be 4% p.a.
Banks may credit the additional 3% incentive subvention to the farmers account only after prompt repayment.
This benefit would not accrue to those farmers who repay after one year of availing such loans.
Branches shall refer this circular for other guidelines and instruction.
ADV.145/2011-12 dt.23.01.2012
On Line Home Loan application Prospective home loan customers can
apply online through our website, www.indianbank.in for in-principle approval. Prospective home loan borrowers can log on to the Bank’s web site and apply for home loan through web-access, facilitating speedy clearance of the request by the Bank.
On receipt of the online home loan application the same will be processed at the Corporate office, PBD and an in-principle approval for the eligible loan amount (based on the data furnished) will be given to the applicant quoting a reference number and also marking a copy of the same to the allotted / preferred Branch through e-mail, for further follow up. The draft in-principle approval is enclosed for ready reference as Annexure to this circular. Follow up action at Branches
The applicant, as per our in principle approval letter is required to submit the duly filled in regular, prescribed application form available in our web site along with necessary credentials to the preferred / allotted branch for regular sanction quoting the reference number received from CO/PBD.
However on receipt of the in principle approval letter copy through e-mail from CO/PBD the Branch has to contact the customer and follow up for his submission of regular proposal with relevant papers.
On receipt of the completed application, Branch has to give sanction at the earliest and if any clarifications are
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required, it may be collected in a single lot by the quickest mode.
ADV.147/2011-12 dt.25.01.2012
IB Swarna Mudra Scheme – Submission of Form F to the Sales Tax Authorities while transferring gold coins from one state to another state
Whenever gold coins are moved from branches of one state to branches of another state for sales to be effected at their end, Form F need to be produced by the receiving branch, in order to consider the movement of coins as stock transfer. If Form F has not been produced, the stocks so transferred will be treated as sales and sales tax will be levied for the same as per the provisions of Section 6 (A) of CST Act.
Hence, all the branches, who receive gold coins from the branches of other States, are instructed to submit Form F to the transferor branch to enable the transferor branch to file the same to their concerned Sales Tax Authorities.
ADV.150/2011-12 dt.08.02.2012
Revival, Reform and Restructuring Package for Handloom Sector- Scheme from Ministry of Textiles
Revival, Reform and Restructuring Package for Handloom Sector- Scheme has been approved for implementation in our Bank. The scheme is applicable for Regional Rural Banks also. The Package comprises of two parts –
Scheme-1 Revival of Handloom Weavers Cooperative Societies (Primary and State Level Apex)
Scheme- II
Revival of Handloom Weavers by Waiver of Working Capital and Term Loans of Individual Weavers, Self Help Groups (SHGs), Joint Liability Groups (JLGs) and Master Weavers.
The scheme will be implemented once the MOU is signed by the major stake holders. viz, Government of India, State Governments and NABARD.
The Bank Branches have to display the list of eligible Weavers within 60 days from the date of signing the LOC by the respective State Government. The implementation of the package is to be completed by 31st Dec.2012.
As per the scheme, funds will be provided by the Government for repayment of 100% of principal and 25% interest as on date of loan becoming NPA which is overdue as on 31.03.2010 in respect of viable and potentially viable Primary Weavers Cooperative Societies and Apex Societies as well as in respect of individual Handloom Weavers, Master Weavers, Self Help Groups
(SHGs) and Joint liability groups (JLGs), provided the banks agree for sanctioning fresh loans. The balance 75% of overdue interest and the entire penal interest, if any, will be written off by the Bank.
There would be an overall ceiling of Rs.50,000 per individual beneficiary in respect of waiver of overdues of individual handloom weavers. Advance against pledge or hypothecation or any other collateral would be included under the scheme for waiver.
Waiver of loan and interest for a particular beneficiary as above will be done only if the Bank simultaneously agrees to extend a fresh loan of Rs.20,000 or more to that beneficiary. Rejection of fresh loan application / loan waiver (if any) will be done at Zonal Manager level.
The scheme will not apply to loans disbursed after 31.03.2010. The scheme will also not applicable to the loans restructured and rescheduled in the normal course by the Bank in the past under GoI/ State Government scheme or under OTS of the Bank as per the RBI guidelines, being covered under SARFAESI Act / Legal recourse by the Bank as on date of the scheme.
The Government has further approved an interest subvention of 3% for 3 years to be extended from the date of disbursal of the fresh loan extended by banks. The Government will make necessary provision towards payment of Guarantee Fee and Annual Service fee to be paid to CGTMSE, for credit guarantee for a period of three years for the fresh loans.
The operational guidelines / Minutes of meeting of National Implementation, Monitoring and Review Committee (NIMRC) received from NABARD & detailed guidelines on both the Schemes are given as Annexure to this circular.
ADV.154/2011-12 dt.20.02.2012
Personal Segment Loan Products – Delegation of sanctioning powers to Branch Managers and Discontinuance of Retail Banking Segment
In order to quicken the process of sanction of Personal Segment Loans and to improve our retail credit exposure, with effect from 1st March 2012 - o Branch Managers are empowered to sanction various
Personal Segment Loans – Powers delegated to various sanctioning authorities will be communicated to branches by Zonal Offices and
o Retail Banking Segment (RBS) has been Discontinued.
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The proposals falling beyond the powers of Branch Managers are to be referred to Zonal Office.
The powers delegated to field level functionaries are subject to NPA level under Personal Segment Loan Product (PSLP) of the Branch and Zone is within the tolerance level of 5% of total balance outstanding under PSLP. Educational Loan proposals of branches where NPA level under PSLP is more than 5% of balance outstanding under PSLP, are to be referred to the next higher sanctioning authority for sanction. The branches and Zones, where NPA level under PSLP is more than 5% balance outstanding, have to take prior permission from CMD before considering sanction of fresh Personal Segment Loans other than Educational Loans.
Apart from existing guidelines, the following additional control measures shall be adopted by Branches / Zonal Offices:
All the sanctions under PSLP are to be reported under AUW-1 (Audit control return) by the branches for post sanction scrutiny by the Audit Department of Zonal Offices. While scrutinizing, Zonal Offices should ensure the NPA levels under PSLP of the branch and Zone is as given above.
Zonal Office should verify the sanctions and disbursals made by the Branch Managers under PSLP on random basis.
Pre-release audit for PSLP advances of Rs.10 lakhs and above (presently Rs.50 lakhs and above) is to be conducted. For PSLP advances of Rs.10 lakhs and above and less than Rs.50 lakhs, the pre-release audit may be carried out by Officers other than the processing officer/s and sanctioning authority. For the limits of Rs.50 lakhs and above, the pre-release audit should be conducted as per the existing guidelines.
Branches shall be guided for the norms, terms and conditions for sanction of Personal Segment Loans by some of the important circulars / manual listed in the Annexure to this circular.
In respect of relaxation in norms of the scheme for individual proposals, branches have to submit the relaxation proposals in the Relaxation Format Annexed to this circular, to the respective authorities.
ADV.155/2011-12 dt.28.02.2012
IB Home Loan Scheme – Revision in processing charges for Home Loans with limits above Rs.10.00 lakhs The Processing and Administrative Charges has been reduced on Home Loans sanctioned henceforth with limits above Rs.10.00 lakhs as under:
Home Loan Existing Revised
Processing fee* (To be collected along with the application,
which is non-refundable)
0.25% of loan amount
For limits upto Rs.10.00 lakhs: 0.25% of loan amount
For limits above Rs.10.00 lakhs: 0.20% of loan amount with a minimum of Rs.2,500/- and maximum of Rs.20,000/-
Administrative fee*
(To be collected on sanction of loan–before
disbursement)
0.32% of loan amount
For limits upto Rs.10.00 lakhs: 0.32% of loan amount
For limits above Rs.10.00 lakhs: 0.25% of loan amount with a minimum of Rs.3,200/- and maximum of Rs.25,000/-
* inclusive of Service Tax. All other norms of the scheme remain unchanged.
ADV.157/2011-12 dt.06.03.2012
Conversion of IBKC loans on account of Natural Calamity- Introduction of new Loan product ‘Restructured IBKC loan’
To facilitate the branches for restructuring the IBKC limits (by converting IBKC limits into term loans), a separate loan product namely “Restructured IBKC loan” has been introduced.
The salient features of the “Restructured IBKC loan” are -
Product has been created under Loan Module.
Product Code is 5903-0050.
Repayable in annual instalments with initial moratorium period of at least one year.
Repayment period will be 3-10 years.
Rate of interest to be charged will be the same as applicable to short term loans and is linked to Base Rate.
Branches should identify the eligible IBKC accounts and extend relief by restructuring/ converting the IBKC limits into term loan. The Branches have to close the existing IBKC account and open a fresh account under the “Restructured IBKC loan” product. The limit for the new product will be equal to the balance outstanding in the existing IBKC limit + interest up to the date of conversion of IBKC limit into Restructured IBKC loan.
Branches shall ensure that necessary request letter from the borrower for conversion of the IBKC loan and F-117 along with D11 is obtained from the borrower and guarantor at the time of conversion.
ADV.161/2011-12 Dt.26.03.2012
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CRA PAN (Permanent Account Number) Drive for Online view of 26 AS (Tax Credit Statement) Online view of Tax Credit Statement (Form 26AS) of taxpayer is also available to net banking account holders of our Bank as we have registered for the same with National Securities Depository Limited (NSDL), for the benefits of the tax payers.
To avail this facility, the PAN holder is required to have net banking account with our bank, wherein view of Tax Credit Statement (Form 26AS) has been made available to PAN holder which is mapped to that particular account.
Branches should obtain the PAN number of each of the Net Banking Account holders and link the same to the respective CIF. Branches shall send SMS to the customers focusing on `net banking users` who have not yet availed the online view facility and prompt them to use this facility.
CRA.03/2011-12 dt.06.04.2011
Interbank Mobile Payment Service (IMPS) Interbank Mobile payment Service (IMPS) is an interbank electronic fund transfer service, within and outside the bank, through mobile phones.
The transactions can be done only during the working hours of the RTGS system. National payment Corporation of India (NPCI) is the nodal agency for IMPS. IMPS facilitate customers to use mobile instruments as a channel for accessing their bank accounts and perform interbank fund transfers in a secured manner with immediate confirmation features.
This facility is provided by NPCI through its existing NFS switch. At present, IMPS is restricted to interbank transactions, by which one can pay the grocery bill to the shop owner through mobile, provided both are registered IMPS users with their respective banks. Similarly, one can pay a taxi fare to the taxi driver, directly through IMPS. So, IMPS paves the way for all kinds of payments through banks from a mobile handset.
According to RBI guidelines, a customer can transact up to Rs.50000/- a day through IMPS, provided he / she is using end-to-end encryption (provided by the bank). Transactions up to Rs.5000/- a day can be facilitated by banks without end-to-end encryption.
The charges for funds transfer through IMPS will be Rs.6/- per transaction / as per NEFT charges (waived till 31.08.2011). Customer’s FAQs for Interbank Mobile payment Service (IMPS) is annexed for reference to this circular. CRA.05/11-12 dt.12.4.11 & CRA.36/11-12 dt.07.06.11
Customer Grievance Redress through SMS with keyword Complaint Our Customer Grievance Redress Mechanism is strengthened by enabling customers complain through SMS. Customers using their mobile numbers can send SMS by typing the keyword Complaint to 56677. The Mobile phone numbers will be received by our Customer Service Cell, almost instantaneously, who will immediately call the customers in the mobile phone numbers received and all complaints about our services will be sorted out within 2 working days.
Branches / Departments on intimation from Customer Service Cell have to directly address the grievance and submit action taken/compliance report through e mail / ip message to Customer Service Cell. Some of the complaints depending upon the nature, shall be directly dealt with by Customer Service Cell. Complainants will be charged for sms as per plans with their respective Service Providers.
CRA.6/2011-12 dt.12.04.2011
Return of Dividend Warrants / Interest Warrants (D/W / I/W) for want of payee's signature on the reverse of the instruments According to RBI and IBA guidelines branches shall
1. Not return the D/W / I/W for want of signature of the payee on the reverse unless specifically insisted by the issuing company.
2. Advise their corporate customers not to insist on payee’s signature while issuing the D/W / I/W by incorporating suitable clauses in the agreement to be entered with them.
CRA.11/2011-12 dt.20.04.2011
Display of timings for RTGS / NEFT transactions All the branches shall display the timings for RTGS / NEFT transactions prominently in the banking hall / notice board / banners as per the directions of RBI, as below:
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Product Days Customer transactions
Inter-bank transactions
Monday to Friday
9.00 AM to 4.30 PM
9.00 AM to 6.00 PM
RTGS
Saturday 9.00 AM to 1.30 PM
9.00 AM to 3.00 PM
Monday to Friday
9.00 AM to 7.00 PM (settlement on hourly basis)
NEFT
Saturday 9.00 AM to 1.00 PM (settlement on hourly basis)
CRA.20/2011-12 dt.28.04.2011
Database maintenance of pensioners Pension paying branches shall:
1. intimate any change in the status of each pensioner so that they can update the database in respect of pensioners of the above PAO (code No. 062463)
2. follow the provision as given in the circular strictly and return the PPOs of the closed pension accounts to CPAO, through Link Branch under intimation to the concerned PAO.
CRA.25/2011-12 dt.09.05.2011
Collection of ESI contributions of employers by branches According to Joint Director (Finance), Employees` State Insurance Corporation, Regional Office, Chennai, the collection of ESI contributions through non-SBI branches should be discontinued, due to implementation of collection of contributions through system generated challans.
CRA.40/2011-12 dt.17.06.2011
HDFC Standard Life Insurance Business – Data Entry to be done at branches
‘On line Data Entry” system has been introduced, in respect of the HDFC Life Policies canvassed by the branches with immediate effect. This will facilitate identification of the branches for crediting the eligible commission in respect of the policies canvassed by them in time and without any omissions.
The data entry has to be made in the designated Screen in – CBS HELP DESK >> Other Website >> Bancassurance >> HDFC Policies Canvassed.
Branches should fill up all the details in the data entry screen now provided in the Help
Desk and mention the system generated Reference No. on the proposal form without fail before handing over to HDFC SLI Officials for processing and logins.
CRA.50/2011-12 dt.06.07.2011
Levy of Processing Charges on electronic payment system- NEFT / NECS / RECS / ECS
According to Reserve Bank of India the clearing houses / processing centres are permitted to recover processing charges and compensate the destination banks on the retail electronic payment products like NEFT, NECS, RECS and ECS. The charges payable by the Originating banks on the above transactions are given below.
1) Clearing Houses / Processing Centres to levy charges on the Originating banks as under:-
i) 25 paise for every Outward transaction
ii) 25 paise for every Return transaction
2) Originating banks to pay the destination banks, as compensation as under:-
i) 25 paise for every Credit transaction
ii) 50 paise for every Debit transaction
The charges proposed are effective from 01.07.2011 and are exclusive of service tax. The participant banks are not permitted to pass on the charges to customers.
The procedure for paying / collecting the charges to / from other banks and other instructions are given in the circular.
All the Service / Main branches and branches participating in clearing are requested to enter the details of compensation payable / receivable in the template no.553. The navigation for the template is BBMIS–> Monthly -> BOD -> 553 NECS/RECS/ECS Compensation.
Branches have to enter the details like No. of transactions, Amount of transactions and the compensation payable / receivable amount, date of payment / receipt and the pending details if any in the template. Name of the banks are given in the drop down and branches have to select the branch name from / to which the amount receivable / payable are to be entered. In case of wrong entries ‘delete’ option is provided in the template. The
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compensation payable / receivable is effective from 01.07.2011.
CRA.52/2011-12 dt.07.07.2011
Withdrawal of Banking Cash Transactions Tax (BCTT) - regarding
As per Section 95(3) of Chapter VII of the Finance Act 2008, no BCTT shall be charged in respect of any taxable Banking transaction entered into on or after 01.04.2009.
CRA.54/2011-12 dt.11.07.2011
Opening of Service Branch/ Tirunelveli & Issue of Demand Drafts on Tirunelveli
Service Branch/Tirunelveli (IBGA Code: S195) has started functioning covering the branches coming under Tirunelveli Clearing Zone (List of the branches is given in the circular).
Henceforth, branches shall issue Demand Drafts in respect of the listed drawee branches on Service Branch/Tirunelveli only.
Branches are also advised to send their OBC cheques drawn on these centres to Service Branch/Tirunelveli for realisation.
CRA.59/2011-12 dt.18.07.2011
Distribution Tie up with SBI Mutual Fund for sale of MF products
Our Bank’s tie up with UTI Asset Management Co. for selling MF products of UTI MF and with Reliance Capital Asset management Ltd for Mutual Fund products of Reliance Mutual Fund (RMF) through our Branches has been working well.
With a view to provide our customers a choice of MF Schemes, a Distribution Tie up arrangement with SBI Funds Management Private Limited has been approved for selling Mutual Fund products of SBI Mutual Fund through our Branches.
Our branches are authorized to sell all MF products of SBI Mutual Fund – both New Fund Offerings (NFOs) and On-going Schemes. Our Banks’ AMFI Registration No.ARN 17645 has to be used in all Applications as our Distributors Code. All the Applications canvassed should be stamped with the following:
Box reading Stamp to be affixed Name of Broker Code & ARN
“INDIAN BANK – ARN 17645”
Sub Broker/Sub Agent Code
IBGL Code of your Branch & SR No of staff who canvassed the business.
Commission and other charges payable for the business canvassed by our Branches will be paid by SBI Mutual Fund to HO: Bancassurance Service Centre; and HO: Bancassurance Service Centre in turn will distribute the commission to the respective branches by direct credit to the branch Income Head “Commission on Mutual Fund Business”. Branches shall refer the circular for further instructions.
CRA.64/2011-12 dt.23.07.2011
Pension Master – Inputting correct values to avoid wrong calculations/ disbursements
CPPC, Chennai is taking care of pension processing and crediting Saving Bank accounts of the pensioners centrally based on the data given as input by the branches. Hence, Branches should be more careful while entering the data in Pension Master for the new pensioners as well as any modification in the existing data. CPPC, Chennai have come across a number of discrepancies, which resulted in excess payment of pension and recovery of excess paid, causing inconvenience to the pensioners.
Data relating to all the pensioners is to be reviewed and necessary corrections / rectifications, wherever required, are to be carried out by the branches for accurate calculation and disbursement of pensions.
Some of the common errors noticed by the CPPC, Chennai while scrutinizing the pension data are annexed to this circular and the pension paying branches should correct / rectify the errors by going through PPOs.
CRA.65/2011-12 dt.23.07.2011
Inspection by RBI on conducting of Government business by Agency Banks
All the branches, particularly pension paying branches, should submit the compliance certificate to their Controlling Office after rectifying the irregularities / discrepancies pointed out by the Officials of RBI. In turn, Controlling Office shall forward the compliance certificate to
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the RBI indicating the number of irregularities rectified and outstanding with reasons thereof. Time limit for submission of this certificate to RBI is 30 days from the quarter in which the inspection has taken place.
All branches conducting Government Business are advised to strictly follow the instructions of RBI in this matter.
CRA.68/2011-12 dt.26.07.2011
Front end changes in NEFT / RTGS screens On several occasions, branches have
originated NEFT / RTGS messages, with wrong amount and commission, which caused financial loss to the bank.
These transactions were generated by the makers and passed by the checkers after giving supervisory overrides, in a casual manner, causing inconvenience to the bank as well as to the customers.
In order to eliminate such errors, the following controls have been built in the NEFT / RTGS screens.
i) New Field “UNDER Rs.” is created at the bottom of the screen. If the remittance amount (excluding commission) is with paise, next rupee amount is to be entered in “UNDER Rs.” Field. If the remittance amount is without paise, then remittance amount + 1 should be entered in “UNDER Rs.” field. Click “VERIFY” amount button to compare these two figures and if the difference is less than or equal to 1, system will permit to generate the queue.
ii) Copy and Paste function is disabled. iii) Under commission field maximum 2 digits
are allowed. Maker has to calculate and enter the commission correctly.
Accordingly, the following fields will be relocated and branch-wise limit will be fixed for NEFT / RTGS transactions.
i) Account Number, Cheque Number, instrument date and instrument type etc., will be shifted to the right bottom of the screen.
ii) It is decided to set up branch-wise limits for transactions under NEFT / RTGS. A default limit of Rs.1 Crore will be set up for each branch.
Zonal offices shall study the requirements of branches and recommend for higher limits wherever necessary, keeping in view the size and requirements of the branches. The limits will be parameterised as recommended by Zonal Offices.
Branches will not be able to remit funds more than the limit fixed for the branch. In case, if any branch wants to remit funds more than the limit fixed, they have to contact Project Office through their Zonal Office, one day in advance.
CRA.69/2011-12 dt.27.07.2011
Provision of Group Life Cover to Educational Loan Student Borrowers – Introduction of New Scheme - “ IB VIDYARTHI SURAKSHA “ by arrangement with M/s MetLife India Insurance Co Ltd.
A new Group Insurance Scheme branded as “IB VIDYARTHI SURAKSHA“ an arrangement with M/s MetLife India Insurance co Ltd. has been introduced, to provide cover to those existing borrowers who have not been covered under the Scheme so far The scheme offers a Six month Window to cover those existing uncovered Educational Borrowers. The salient features of “IB VIDYARTHI SURAKSHA” are given in Annexure I while Procedures & Operational guidelines to be followed are detailed in the Annexure II to this circular.
Branches are advised to send letters as per Annexure III of this circular, to the existing educational loan student borrowers advising them to get the insurance cover under the “IB Vidyarthi Suraksha” Scheme within the time period allowed. Branch Manager / Loan Officer to explain the salient features of the Schemes to all eligible educational loan customers and convince them to get the coverage and thus comply with the HO instructions.
Branch Managers are permitted AS ONE TIME MEASURE to sanction premium amount as part of the existing educational loan after complying with extant norms / guidelines. Details of such sanctions should be reported to the Original Educational Loan Sanctioning Authority for confirmation. However, in cases where, by the virtue of additional loan amount towards the premium, if interest rate goes up, Branch Manager should discuss the same with the borrower’s
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APRIL 2011 – MARCH 2012
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concerned for the payment of premium on a case to case basis.
Branch Manager / Loan Officer should explain the salient features of both New IB Jeevan Vidya and IB Vidyarthi Suraksha Schemes to all the eligible fresh educational loan customers but the choice of joining either of the two schemes must be left to them.
CRA.76/2011-12 dt.06.08.2011
Discretion to customers for selection between RTGS and NEFT
Reserve Bank of India, reiterated that all the participating banks should provide the option to the originating customer to choose between the two modes viz. RTGS and NEFT at the time of initiation of the funds transfer. The option should be made available to all the customers who may originate remittance either at the branch or through internet or any other means. The funds are to be transferred necessarily through the option chosen by the customer.
CRA.82/2011-12 dt.17.08.2011
Green Initiative: use of Electronic Payment - e-Governance
Government of India, Department of Financial Services, Ministry of Finance has informed that -
Public Sector Bank (PSBs), Financial Institutions, viz., NABARD, SIDBI, EXIM Bank, and Public Sector Insurance Companies would take up the e-Governance initiatives in a pro-active manner, as part of the Green Initiative. Through these initiatives, it is expected that on one hand, the quality and efficiency of the service delivery will improve and on the other, banks will gradually move towards less paper based transactions.
It is envisaged that all PSBs, FIs and PSICs would with effect from 1st September 2011, except for petty cash, deal with disbursal / payments only through direct credit to accounts. This will include payments to the staff, vendors, suppliers and disbursement of loans and payments towards instalments and investments.
Hence, Departments at Head Office, Zonal Offices and Branches are advised to make payments / disbursals only through electronic mode by way of direct credit / RTGS / NEFT.
CRA.87/2011-12 dt.27.08.2011
Collection of Direct Taxes through our Bank`s ATM Henceforth our customers may pay Direct
Taxes through our Bank ATMs. The process of payment involves two stages. In the first stage, the tax payer who is the ATM card holder will submit a request to the home branch, for registration of details like Permanent Account Number (PAN), Major Head / Minor Head of Income Tax (which he intends to pay) as per the format provided in CBS Help Desk. In the second stage, taxpayer uses the ATM card in ATM and makes the payment as per the displayed label.
Branches, after verification of the details, furnished by the customer in the required format, should access Universal Payment Service website by choosing the URL - https://securevas.fssnet. co.in/APS/ibkbanklogin.htm for the purpose of registration.
The user name should be the IBGA code of the branch in Capital letters. Password has been sent to the branch e-mail ID by HO: TMD. In case the password has not been received through e-mail, branch has to send a request to atmtech@ indianbank.co.in for getting the password. After first successful login, the branch has to compulsorily change the password. Operational details and other guidelines are provided in this circular.
Since we are collecting tax only from Individual tax payers through ATMs, only PAN should be accepted from customers, and TAN should not be accepted. The workflow / process flow with screen shots has been placed in Help Desk by HO/TMD for immediate reference by branches.
CRA.91/2011-12 dt.08.09.2011
Return Discipline in RECS (Debit) and MICR - Imposition of Penalty
The returns Discipline in RECS (Debit) and MICR for the month of June, July & August 2011 are much above the tolerance level of 2% prescribed by RBI. RBI has informed that penalty of Rs.1000/- per instrument will be imposed on the returns above the prescribed level.
As per RBI guidelines, destination bank branches (where debits are to be posted or centrally from a single location) to hold debit mandates based on which the debits are to be posted. Mandates wherever taken with old Account Numbers, shall obtain fresh mandates with New Account Numbers.
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Branches shall take the following measures to curtail the return rate:
i) Advise the customers to keep sufficient balance in their accounts to meet the debits.
ii) Call back the cheque books or take measures to cancel the debit mandates wherever cheques / ECS items are returned more than once.
iii) Take necessary steps to close the unremunerative and undesirable accounts as per procedure.
CRA.94/2011-12 dt.14.09.2011
Dishonour of electronic funds transfer for insufficiency of funds in the bank accounts – clarification
With regard to the rights and remedies available to the payees against dishonour of electronic funds transfer instructions vis-à-vis the users of cheque payment system.
Government of India, Department of Financial Services and Reserve Bank of India clarified as below:
1. The provisions contained in Section 25 of the Payment and Settlement Systems Act, 2007 accord the same rights and remedies to the payee against dishonour of electronic funds transfer as are available to the payee under Section 138 of the Negotiable Instruments Act, 1881.
2. The sub-section (5) of Section 25 of the Payment and Settlement Systems Act,2007 provides for punishment of 2 years and twice the amount of electronic funds transfer, or both for dishonour of electronic funds transfer as has been stipulated for dishonour of cheques under Negotiable Instruments Act, 1881.
3. The Payment and Settlement Systems Act, 2007 accords legal recognition to electronic payment systems and legal recourse to a beneficiary expecting electronic funds transfer.
CRA.96/2011-12 dt.23.09.2011
Service charges for members
Reserve Bank of India, informed that it has been decided to levy service charges for all outward transactions of RTGS members. The
rationale behind the levy of service charges for outward transactions of members in the RTGS system is to (a) recover operational costs and (b) to bring in further efficiency in the operations and the Liquidity flows in the RTGS system.
The RTGS service charges have three components (i) membership fee, (ii) transaction fee and (iii) time-varying tariff are given in this circular. Membership fees and transaction fees are not to be passed on to customers.
The maximum customer charges that can be recovered by a member bank from its customer would be as under:
RTGS transaction Maximum customer charges:
Inward transactions - Free
Outward transactions Rs.2 lakh to Rs.5 lakhs Rs.25 + applicable time varying tariff subject to a maximum of Rs.30/-. Above Rs.5 lakhs Rs.50+ applicable time varying tariff subject to a maximum of Rs.55/-
The service charges will come into effect from 01.10.2011. Bank has decided to pass on the time varying tariff to customers. Necessary changes have been effected in the CBS software to give effect to the time varying tariff. Staff shall refer this circular for further details.
There is no need of including the time varying tariff in the challan and cheque since the tariff will be automatically debited by the system based on the time at which transaction is authorised. Customers may be advised to avoid last minute transactions in a particular time band, as there is a processing time involved for the transactions, which will take it to the next time band involving higher time varying tariff.
CRA.104/2011-12 dt.28.09.2011
Merger of Indian Bank Depository Services (DP ID: IN303093) with Indbank Merchant Banking Services Ltd (IBMBS Ltd)
NSDL, Mumbai have approved the merger of Indian Bank DP with our subsidiary DP, Indbank Merchant Banking Services Ltd (IBMBS Ltd) with effect from 01.10.2011. All the DP operations of Indian Bank henceforth will be handled by IBMBS Ltd. directly with NSDL from 01.10.2011.
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APRIL 2011 – MARCH 2012
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However, some of the existing Indian Bank DP authorized branches would continue to provide the minimum services to DP clients. As per NSDL guidelines, Indian Bank DP (the transferor DP) is expected to extend the support services as to transferee DP (IBMBS Ltd) for certain period till it makes its own arrangements for establishment of their own service centres in such locations.
The existing back office software of Indian Bank DP, viz. “DP Secure” would be discontinued with effect from 01.10.2011.The branches are provided with DP back office link of IBMBS Ltd, viz. “SharePro” wherein all the client details such as client master, holdings, balance of DP dues etc., would be carried over. The DP transactions, bill details etc. would be available in the new IBMBS Ltd DP software with effect from 01.10.2011 and for requirement of these details, if any by clients for the period prior to 01.10.2011, the branches may contact IBMBS Ltd, Chennai who will provide such information. The new IBMBS Ltd back office URL is http://10.147.11.200/shrdbms.
With effect from 01.10.2011, all new demat accounts will be opened under DPID: IN300597 by using the account opening form supplied by IBMBS Ltd.
List of Indian Bank DP authorized branches for providing minimum service to DP Clients as a support to our subsidiary (IBMBS Ltd; List of Indian Bank DP branches mapped with nearest IBMBS terminals; Nature of minimum DP services to be rendered – operational Guideline; Client Master Changes Request Form and Speed-e-Facility Application Form (for sending D I S electronically to DP) are given as annexure to this circular.
CRA.106/2011-12 dt.28.09.2011 Domestic Money Transfer- Relaxations Reserve Bank of India, vide Circular RBI/2011-12/213-DPSS.PD.CO.No.622/02.27.019 / 2011-2012 dated 5th October, 2011 informed as under:-
1. At present only banks are permitted to initiate money transfers in the country subject to adherence of KYC/AML guidelines. A large number of people, particularly the migrant population, do not have access to formal banking channels for want of proof of identity/address. Consequently, they face difficulties in using the authorized channels for transferring funds. Reserve Bank has been
receiving frequent representations to open up the formal banking channel to facilitate fund transfers of small value, subject to monthly ceilings and monitoring, to give impetus to the process of financial inclusion. These guidelines are issued after having reviewed the related issues. These relaxations are expected to provide money transfer facilities in a safe, secure and efficient manner across the length and breadth of the country.
2. The relaxations fall under the following three categories:
a. Liberalizing the cash pay-out arrangements for amounts being transferred out of bank accounts to beneficiaries not having a bank account and enhancing the transaction cap from the existing limit of Rs.5,000 to Rs.10,000 subject to an overall monthly cap of Rs.25,000 per beneficiary.
b. Enabling ‘walk in’ customers not having bank account (for instance migrant workers) to transfer funds to bank accounts (of say family members or others) subject to a transaction limit of Rs.5,000 and a monthly cap of Rs.25,000 per remitter.
c. Enabling transfer of funds among domestic debit/credit/pre-paid cards subject to the same transaction/monthly cap as at (b) above.
3. Operational instructions are detailed in the Annexure to this circular.
4. This directive is issued under section 18, of the Payment and Settlement Systems Act 2007, (Act 51 of 2007).
CRA.115/2011-12 Dt.10.10.2011
Collection of fees for TN Arasu Cable TV Corporation Ltd As per the arrangements for collection of fees towards TN Arasu Cable TV Corporation Ltd, Arasu cable TV operators will generate the challan through internet directly or through our Banks Website and produce the challan for remitting the money. Branch has to accept the payments through transaction mode and there is no need of generating the MUP reference number once again.
CRA.125/2011-12 Dt.29.10.2011
Co branded Mediclaim Policy “IB Arogya Raksha”– Renewal of MOU for 2011-12 The MOU with the United India Insurance Company (UIICo) governing the issue of Arogya Raksha Policies has been renewed for a further period of twelve months from 01.10.2011 up to 30.09.2012, retaining all the features of existing scheme.
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Further UIICo has agreed to extend their marketing support to our branches in conducting campaigns and providing publicity materials such as banners, pamphlets etc.
Premium rates have been increased by 10% across the table during the renewal period. The revised rates are as furnished in Annexure 1 to this circular along with other details of the policy.
CRA.128/2011-12 Dt.03.11.2011
On line Verification of Permanent Account Number (PAN) for accepting remittances (Income Tax, TDS etc.) under OLTAS and for creation of CIF
Bank has made arrangement with NSDL and launched the facility of availing ‘Online PAN validation’.
Whenever branches enter the PAN in OLTAS system, the same will be validated by fetching records from NSDL website. Only if the entered PAN is valid, the system will allow capturing further details. In case of invalid PAN, branches should contact the customer and obtain the correct PAN. The name corresponding to the PAN entered as per NSDL Master will be displayed. The system will not allow the name to be changed. Branches should ensure that tax credit goes to the correct tax payer.
Since PAN is compulsory for various financial transactions, branches have to obtain PAN numbers of Customers and link the same to the CIF of the customer after validating the same. The same process of validation is done in case of entering PAN in CIF Master while opening / amending CIF.
CRA.129/2011-12 Dt.04.11.2011
Issue of Demand Drafts for Rs.20000/- and above In view of the instructions received from Reserve Bank of India, branches should affix the account payee crossing on all the demand drafts issued for Rs.20000/- and above without fail.
CRA.131/2011-12 dt.09.11.2011
Payment of Cheques / Drafts / Pay Orders / Banker's Cheques RBI has directed that with effect from 01.04.2012, banks should not make payment of cheques / drafts / pay orders / banker’s cheques bearing that date or any subsequent date, if they are
presented beyond the period of three months from the date of such instrument.
Branches shall affix rubber stamp with instruction as ‘Valid for three months only from the date of the instrument’ in the existing cheque books / drafts / pay orders / banker’s cheque books to be issued from 01.04.2012 and ensure strict compliance to RBI directions.
CRA.132/2011-12 Dt.09.11.2011
NEFT between RRBs and Indian Bank / Other Banks The facility of funds transfer through NEFT system has been extended by Indian Bank to all the three of our sponsored RRBs through Sponsor Bank infrastructure in three phases as under:
NEFT- transactions among the three RRBS : w.e.f 09.05.2011
NEFT- transactions between RRBs and Indian Bank : w.e.f 29.07.2011
NEFT- transaction between RRBs and Other Banks : w.e.f 14.11.2011
Customers of RRBs can now transfer funds to Indian Bank / Other Banks through NEFT and vice versa.
CRA.138/2011-12 Dt.19.11.2011
Government of Tamil Nadu- Refund of Pension amount after death of the pensioner or account becomes inoperative- under Pilot Scheme.
According to the Government of Tamil Nadu, Treasuries and Accounts Department, branches shall refund the pension amounts lying for more than 6 months in the Savings Bank Accounts of the Pensioners, whose pension has been paid by the Pension Pay Officer, Chennai - 6, under PILOT SCHEME ALONG WITH INTEREST.
The amount shall be refunded to the Pension Pay Officer, by means of a Pay order drawn in favour of the Manager, Reserve Bank of India, Chennai- 600001 along with the following details:
Sl No.
Name of the pensioner
Pension Payment Order Number (PPO No.)
Name of the branch/ Account number
Details of Amount refunded (Pension Amount, interest amount and period)
A letter of intimation regarding refund of pension amount to the Government may be sent to
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the pensioner before effecting the refund, in the case of inoperative accounts. Hence, Branches should monitor the pension accounts coming under Pilot Scheme and act accordingly.
CRA.141/2011-12 Dt. 21.11.2011
Cheque Truncation System (CTS) in Chennai With effect from 08/10/2011, Cheque
Truncation System (CTS) had been implemented in Service branch, Chennai. In house software has been developed for processing inward and outward clearing cheques in CTS.
Branches under Chennai (S), Chennai (N) and Kancheepuram Zones are attached to 31 hubs. Branches shall refer circular no. CRA-19 / 2010-11 dated 10.07.2010 & CRA – 35 / 2011-12 dated 07.06.2011 wherein the need for CTS 2010 Standard Cheque forms and specifications were given.
Further, branches coming under Chennai CTS are advised to adhere to the following: 1. Cheques should be dephased after clearing. The
cheques shall be affixed with CLEARED stamp with respective MICR code of the branch. The cheques that are returned should be removed before the stamp is affixed.
2. Branches should not present cheques with alterations in CTS clearing.
3. Cheques should be affixed with Bank seal (2”by1/2”) at appropriate place with Bank / branch MICR code. The seal should not be on top of the material information available on the cheque.
4. Cheques drawn on our other branches should not be returned with reason “not drawn on us / account transferred to other branch” etc.
5. Cheque books issued should be entered in the system then and there.
6. Funds books to be attended in time. In CTS environment, funds books are pushed before the branches are opened.
7. KYC norms should be followed strictly as the collecting bank / branch is responsible for frauds if any.
8. Updation of mode of operation, customer details with mobile numbers for SMS alert.
9. Advise the customers to write their account numbers on the back of the instruments.
10. Update the operational instructions and scan the signatures of the authorised persons then and there.
11. Issue only CTS 2010 Standard cheque books to the customers.
12. Funds book cheques should not be returned with technical reasons other than funds. In case the cheque has to be returned with technical reasons, service branch has to be informed of the same.
13. As soon as the cheques are received from the customer, before scanning it should be ensured that all the pins are removed and side perforations are removed.
14. As speed clearing is enable in CTS, DDs / Cheques drawn on other centres are to be presented through CTS. Only Government cheques and cheques of those bank branches which are not in CBS to be sent to other centres.
15. Branches other than hub centres should ensure that they get back the presented cheques from the hub centres. These cheques have to be preserved along with vouchers for future reference.
16. Returns though debited into the account directly by service branch, the memo has to be printed by the branch and cheque to be removed from the bunch received back from the Hub.
CRA.154/2011-12 dt.17.12.2011
Introduction of Demand Drafts Payable “At Par” at all Branches
The following modification comes into effect from 02/01/2012, in the issue and payment of Demand Drafts:
The system is enabled for the branches to make the payment of DD irrespective of the drawee branch mentioned in the DD.
The words “Payable at Par at All Branches” will be printed on the Demand Draft.
The system of printing/writing the drawee branch opted by the customer/applicant will continue.
DD Issuing Branch can also make payment of the DD as in the case of BPO.
Thus the customer will have the facility to present the DD issued by any of our branches on any branch for payment through any mode (cash/ clearing/ transfer), even though it is drawn on a specified drawee branch. Applicable commission / charges for issue of DD and cancellation have to be recovered.
In respect of cancellation and issue of Duplicate DD, the Issuing Branch shall follow the existing procedure and the duplicate DDs can be paid at any branch as in the case of Original DDs.
Branches shall affix on their existing stock of DD leaves, as “Payable at Par at all Branches of Indian Bank”, till the new DD leaves are supplied with the above wordings.
CRA.160/2011-12 Dt 23.12.2011
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TDS on Pension Payment - Income Tax for the Financial Year ending 31.03.2012 - Assessment Year 2012-13.
Bank is under statutory obligation to deduct Income-Tax at source from pension paid to pensioners as per the provisions of the Finance Act 2011, (Read with Income-Tax Act, 1961) The salient features of the Finance Act 2011 are as follows: Rates of income tax for resident individual who is of the age of 60 years or more but less than 80 years at any time during the financial year
Total Income (Rs) Rates of Income Tax Up to 2,50,000 Nil 2,50,001 to 5,00,000 10% of the amount by which the total
income exceeds Rs.2,50,000/- 5,00,001 to 8,00,000 Rs.25,000/- plus 20% of the amount by
which the total income exceeds Rs.5,00,000/-
Above 8,00,000 Rs.85,000/- plus 30% of the amount by which the total income exceeds
Rs.8,00,000/-
Rates of income tax for resident individual who is of the age of 80 years or more at any time during the financial year
Total Income (Rs) Rates of Income Tax Up to 5,00,000 Nil 5,00,001 to 8,00,000 20% of the amount by which the total
income exceeds Rs.5,00,000/- Above 8,00,000 Rs.60,000/- plus 30% of the amount by
which the total income exceeds Rs.8,00,000/-
There is no surcharge on Income Tax for the financial year 2011-12 for individuals, whereas Education Cess at 2% and Higher Education Cess of 1% totalling to 3% on the amount of tax is to be deducted without fail.
Branches shall ensure that tax deducted amount appears in “View Tax Credit Statement (Form 26AS)” to enable the pensioners to view their tax credits.
Branches should deduct proportionate Income Tax every month from the pensioners and remit to Income Tax Department as per extant guidelines. Failure to deduct tax at source will attract penalty under the Income Tax Act.
CRA.169/2011-12 dt.14.01.2012
NEFT between RRBs and Indian Bank / Other Banks Our Bank has already extended facility of
funds transfer through NEFT system to all the three of our sponsored RRBs through Sponsor Bank infrastructure and the IFSC (Indian Financial System Code) for the three RRBs are given below:
Saptagiri Grameen Bank, Chittoor : IDIB0SGB001 Pallavan Grama Bank, Salem : IDIB0PLB001 Puduvai Bharathiar Grama Bank, Puducherry : IDIB0PBG001
CRA.170/2011-12 dt.19.01.2012
Separate Entry for Tax Deducted at Source (TDS) in Bank Pass Book of Pensioners.
In order to avoid inconvenience to the pensioners, Reserve Bank of India directed the pension paying branches to show the amount of TDS on pension payments as a separate and distinct entry in the passbook of the pensioners.
CRA.171/2011-12 dt.19.01.2012
Migration towards ‘CTS 2010 Standard’ According to RBI, all banks providing
cheque facility to their customers have been advised to issue only ‘CTS-2010 Standard’ cheques not later than April 1, 2012 on priority basis in northern and Southern region which will be part of the northern and southern CTS grids respectively and across the country by September 30, 2012 through a time bound action plan.
Since “CTS-2010 Standard” is applicable to the cheques issued by Government Department (Central & State) it is instructed to suitably advise the Government Departments to migrate towards the “CTS-2010 Standard” within the target dates indicated above.
Branches handling the payments for Government Departments shall guide the Government Departments to migrate towards the ‘CTS 2010 Standard’.
CRA.184/2011-12 dt.10.02.2012
Amendment to Para 15.2- Submission of Life Certificate- regarding
According to Central Pension Accounting Office, New Delhi, the following wordings shall be inserted as S.No.(v) under para 15.2 (i) of the Scheme Booklet for submission of Life Certificate in November each year by the pensioner (which deals with the list of specified persons, if signed the Life Certificate in the prescribed form in exemption from personal appearance of the pensioner):-
(v) A Postmaster, a Departmental Sub-Postmaster or an Inspector of Post Offices.
CRA.185/2011-12 Dt.14.02.2012
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Indo-Nepal Remittance System - Measures to enhance usage
In order to minimise the errors, the following changes are made in the NEFT remittance screen for Indo-Nepal Remittance scheme.
1. Please select the Account Type – 51. INDO NEPAL from the drop down. The following details - Our Bank commission, Beneficiary A/c No, IFSC code, Branch Name and Bank Name etc. will be displayed automatically.
2. Fill up the Name and Address of the Beneficiary & Remitter in detail.
3. Fill the amount column taking into account the total amount including our commission plus SBI commission (should not exceed Rs.50000/-).
4. Commission: will be displayed automatically on selection of account type. Commission column is made numeric.
i. Our Bank Commission – R6/- ii. SBI Commission– In case the Beneficiary Account is with Nepal State Bank Ltd A/c – Rs.20/- iii. If the beneficiary account is Other Bank A/c
(a) Remittance upto Rs.4999/-: Commission is Rs.70/- (b) Remittance of Rs.5000 and above upto
Rs.50000/-: Commission is Rs.95/-.
In any case the total amount including both commission should not exceed Rs.50000/-.
5. Senders to Receiver information - all the fields are mandatory. Viz. (i) Beneficiary ID, (ii)Contact Number, (iii) Nepal State Bank Ltd (NSBL) A/c No or Other Bank A/c No & Other Bank Name.
CRA.189/2011-12 Dt.17.02.2012
Frauds in payment of truncated cheques Reserve Bank of India after examining the
suggestions relating frauds in payment of Truncated Cheques, guided as below: i. Since the information in respect of frauds will be with the
paying bank, the present system of reporting frauds by the paying bank may continue. However, in cases of frauds due to fake / forged instruments sent in clearing, the presenting bank will be required to immediately hand over the cheque to the drawee / paying bank as and when demanded to enable the drawee / paying bank to file an FIR with the police authorities and report the fraud to the RBI. The Department of payment and Settlement System of RBI would be advising the procedural guidelines in this regard, to the respective entities.
ii. On the issue of returning the money of the fraudulent cheque to the paying bank by the collecting bank, the RBI has stated that the collecting bank should immediately make the payment of the disputed amount to the drawee / paying bank and recover the money later from its customer.
CRA.212/2011-12 Dt.31.03.2012
FX Agreement with Weizmann Forex Limited for money transfer through Western Union – Revised procedure for effecting payments w.e.f 08 04 2011. As part of better security measures and easier reconciliation, the process flow of payment under the product ‘Weizmann Forex Limited for money transfer through Western Union’ is revised. Branches shall refer this circular for Steps to be followed as per the revised procedure and Procedure for making payment under CBS. Branches may note that since one to one matching of the records is enabled based on the 10 digit reference number, branches have to enter the details correctly otherwise the CBS transaction will not be successful. The customer copy of the receipt should be handed over to the beneficiary and agent copy to be retained at branches along with proof of identity. A separate register has to be maintained date-wise, under this product containing all the details of the payment transactions handled by the branches. Screen shots of the process flow under the product are furnished in the annexure to this circular. Detailed write-up and contact numbers of M/s weizmann Forex Ltd., are avaliable in the Help Desk.
FX.02/2011-12 dt.06.04.2011
Country Risk Management Policy – Changes in the risk rating of countries effective 01.04.2011. According to ECGC of India the revised Country Risk Classification applicable for Quarter April – June 2011, is given in the annexure to this circular. Branches shall take note of the same, while taking fresh exposure.
FX.03/2011-12 dt.18.04.2011
Service Tax on conversion of foreign currency transactions with effect from 01.04.2011 While announcing the Union Budget for financial year 2011-12, Government of India has made certain changes in service tax regulations with effect from 01.04.2011 and it encompasses foreign exchange transactions which involve conversion of one currency into another currency. Branches shall calculate and recover the Service Tax manually at the time of conversion of foreign currency from the Customers till the automatic calculation under CBS/Exim Bill is introduced.
Activities covered
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a. Conversion of foreign currency into Indian rupees and vice versa. The transaction shall include all trade finance and remittance products, TC/Currency purchase and sale, FCNR, EEFC, RFC when converted to Indian rupees must be covered.
b. Conversion of foreign currency into another foreign currency.
c. Only transactions with merchants are covered under this provision and bank to bank transactions are not falling under this service tax net in India or abroad.
d. This type of service tax will not be applicable for booking and cancellation of forward contracts. However, service tax will be recoverable at the time of utilization of forward contract (i.e., conversion of foreign currency).
Branches shall refer to the circular for the method of calculation (Manual) of Service Tax and other guidelines.
FX 06/2011-12 dt 21.04.2011
Migration of existing accounts and opening of fresh accounts falling under provisions of Foreign Contribution (Regulation) Act, 1976. To ensure compliance with the RBI guidelines and to report accurate data to the Government, new product codes have been created under CBS exclusively for opening SB and Current accounts in which remittances which will attract provisions under FCRA, should be made.
All fresh accounts which attract provisions under FCRA should be opened under the specified product code as detailed in this circular. Branches, which do not have any FCRA related account should send a NIL report to respective Zonal Office marking a copy to HO/International Division.
Branches shall refer this circular for Details / Process Flow for opening a New Account under FCRA.
FX.09/2011-12 dt.24.05.2011
Introduction of more avenues for foreign inward remittances – New Electronic Funds Transfer Arrangement with UAE Exchange House, Abudhabi
As part of offering quick customer service and mobilising more foreign inward remittance business, Bank has launched the “ELECTRONIC FUNDS TRANSFER” arrangement with M/s UAE Exchange Centre LLC., Abudhabi with effect
from 28.06.2011. The highlights of this arrangement are briefly given below:
The overseas remitter will remit funds through UAE Exchange, Abudhabi giving full particulars and beneficiary details.
The exchange house will provide sufficient funds to the Bank for making payment and the file containing details of the transactions will be sent to Treasury branch on a daily basis.
Treasury branch will process the file and the accounts of the beneficiaries will be credited immediately in the case of our customers and in the case of customers of other banks, amounts will be credited to their accounts through NEFT/RTGS.
Unlike other avenues, inward remittances received under EFT can be credited to NRE accounts also.
Added feature under this arrangement is that unlike other sources, as per RBI guidelines, even credits under trade transactions are permitted upto a maximum amount of Rs.2,00,000 per transaction.
The entire process is handled by Treasury branch. Similar EFT arrangements with more exchange houses are also in the pipeline. We request the branches to sensitise their customers and keep them informed to contact their relatives and friends circle abroad and request them to send money through Indian Bank EFT arrangement whenever they remit amounts to family/friends/ relatives in India.
FX.14/2011-12 dt.06.07.2011
Exchange Earners Foreign Currency (EEFC) A/c and Resident Foreign Currency (RFC) A/c– Liberalisation by RBI regarding Joint Account Holders
On a review of the “Facilities for individuals under the Foreign Exchange Management Act, 1999”, Reserve Bank of India has communicated the following liberalisation:
Individuals resident in India are henceforth permitted to include their resident close relatives as joint account holders in their EEFC / RFC bank accounts subject to the following conditions:
Relatives as defined in Section 6 of the Companies Act 1956 only can be made joint account holders.
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The resident account holder can include the resident close relative as joint account holder only on “Former or Survivor” basis.
Such resident Indian close relatives who are made joint account holders are not eligible to operate the said accounts during the life time of the resident account holders.
FX.19/2011-12 dt.16.09.2011
Holding of NRE / FCNR(B) accounts by NRIs / PIOs jointly with Indian resident close relatives – liberalisation by RBI
On review of the existing facilities to individuals under FEMA 1999, RBI has communicated that Non-Resident Indians (NRIs) as defined in FEMA notification No.5 are now permitted to open NRE / FCNR(B) accounts with their resident close relatives (relative as defined in Section 6 of the Companies Act, 1956) on “Former or Survivor” basis only.
The resident close relatives shall be eligible to operate the said joint accounts as Power of Attorney holders in accordance with the extant instructions, during the life time of the NRI / PIO account holders.
FX.20/2011-12 dt.16.09.2011
Savings Bank accounts maintained by Indian Residents– Liberalisation by RBI regarding Joint Account Holders
On a review of the “Facilities extended for individuals under the Foreign Exchange Management Act, 1999”, Reserve Bank of India has communicated the following liberalisation:
Individuals resident in India are now permitted to include their non-resident close relatives as joint account holders in their resident Savings Bank accounts, subject to the following conditions:
Relatives as defined in Section 6 of the Companies Act 1956 only can be made joint account holders.
The resident account holder can include the non-resident close relative as joint account holder only on “Former or Survivor” basis.
Such non-resident Indian close relatives who are made joint account holders are not eligible to operate the said accounts during the life time of resident account holders.
FX.21/2011-12 dt.16.09.2011
Foreign Investments in India – Transfer of security by way of gift – Liberalisation by Reserve Bank of India
On a review of the “Facilities for individuals under the Foreign Exchange Management Act 1999”, Reserve Bank of India has communicated the following with regard to transfer of any security by way of gift by an Indian resident to a person resident outside India:
As hitherto, a person resident in India who proposes to transfer any security including shares/convertible debentures by way of gift, to a person resident outside India is required to obtain prior approval of the Reserve Bank of India.
However, the maximum value of security which can be transferred to any person residing outside India by an Indian resident by way of gift, during a calendar year stands enhanced from rupee equivalent of USD 25,000 to rupee equivalent of USD 50,000.
All other conditions as specified in Regulation 10 A (a) of Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) Regulations 2000 dated 03.05.2000 remain unchanged.
FX.22/2011-12 dt.16.09.2011
On line submission of Half-yearly CPG H7 (ECGC related) statement through BBMIS templates – Statement No- 509. AD Branches and Credit intensive branches are uploading the ECGC related half-yearly statements in BBMIS through 4 statements (Nos-208,209,210 & 508). The above four statements has been simplified and consolidated into a single statement 559 - statement of premium paid to ECGC & claims preferred with ECGC for the half-year period.
Branches should enter the actual premium paid to ECGC for the half-year period on their Pre-shipment & Post-shipment export credit account with number of accounts.
Branches should enter the details of ECGC claims preferred during the half-year period only. Details of any earlier rejected claims which are resubmitted during the period also have to be entered. ‘Nil’ button is provided for the branches to submit ‘Nil’ data.
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Branches should enter details of all over due accounts on both pre-shipment and post-shipment along with steps taken by the branch in the remark column.
FX.24/2011-12 Dt.03.10.2011
Brokerage / Commission paid by ECGC to our branches for the ECGC policy canvassed – Revised payment system offered by ECGC
Henceforth, ECGC will pay the brokerage/ commission (net of TDS), every quarter, to a Nodal Office of the Bank and will send the details of branch wise list of business handled and commission earned, rather than to individual branches.
OSB, Chennai has been designated as the nodal branch for
Receipt of commission payment from ECGC,
Distribution of commission income to the beneficiary branches,
Claiming reimbursement of TDS deducted amount from HO accounts department,
Co-coordinating with ECGC office and beneficiary branches relating to the above commission payment.
FX.25/2011-12 dt.08.10.2011
2% Interest Subvention on Rupee Export Credit According to Reserve Bank of India, the Government of India has extended the Scheme of 2% Interest Subvention on Rupee Export Credit with effect from 01.04.2011 to 31.03.2012 on the same terms and conditions to the following FOUR SECTORS only (as against 8 sectors earlier) – (1) Handicrafts, (2) Handlooms, (3) Carpet and (4) Small & Medium Enterprises (SMEs) The procedure for claiming interest subvention is as follows:
a The amount of subvention would be reimbursed on the basis of claim submitted by the branches as at the end of respective quarters strictly in the format annexed to this circular. Branches should ensure that their claims reach the Zonal Office on or before 5th of every month.
b 2% interest subvention is eligible only for the four sectors referred to above.
c The amount of subvention will be calculated on the amount of export credit from the date of disbursement i. upto the date of repayment OR ii. upto the date beyond which the outstanding export credit becomes overdue.
d The claim should be accompanied by an External Auditor’s Certificate certifying that the claim for subvention of Rs.____/- for the respective quarter is true and correct. Settlement of the claim will be done only on receipt of this certificate.
e The consolidated claim for the Zone – branch-wise and sector-wise along with the Auditor’s Certificates submitted by
the branches (in duplicate) should be sent to Corporate Office/Credit Division so as to reach on or before 10th of every month.
As the system is debiting the interest to the loan accounts on the last day of every month under CBS, 2% interest subvention should be extended to the eligible exporters on monthly basis manually by the branches on the first working day of the following month without fail to the debit of their Sundries Receivable II account.
FX/27.2011-12 dt.14.10.2011
Modifications in parameters- NRE Term Deposits With regard to NRE term deposits, the
following modifications are affected with immediate effect: • The maximum term of the NRE term deposits is extended
up to 10 years.
• The rate of interest on NRE term deposits as applicable to “3 years and above up to 5 years” is applicable for above 5 years period also.
• The minimum period for which NRE term deposits can be opened continues to be 1 year as stipulated by RBI.
• In case of premature closure before completion of 1 year term, no interest is payable on the deposit, as per the existing RBI guidelines.
• In case of premature closure after completion of one year, the existing procedure as applicable for domestic term deposits is applicable for NRE term deposits also i.e
Up to Rs.15 lacs – Eligible rate will be the applicable card rate for the actual period run prevailing on the date of deposit less 0.75% p.a as foreclosure charges.
Above Rs.15 lacs and up to Rs.5 crores – Eligible rate will be the applicable card rate for the actual period run prevailing on the date of deposit less 1% p.a as foreclosure charges.
Above Rs.5 crores – Eligible rate of interest will be the applicable rate of interest at the time of deposit for above Rs.5 crores or Rs.15 lacs to Rs.5 crores which ever is less minus 1% as foreclosure charges.
• In case NRE term deposits are pre closed for renewal the renewal will be permitted at the applicable rate on the date of renewal without penalty, provided the deposit is renewed for a period longer than the balance period of the original deposit.
• While prematurely closing the deposit for the purpose of renewal, interest on the deposit for the period it has remained with the bank will be paid at the rate applicable to the period for which the deposit has remained with the bank and not at the contracted rate.
• Branches are to note that w.e.f 28 12 2011, interest rates on NRE term deposits for periods 1 year and above are aligned with interest rates on domestic term deposits and any future revision in the domestic deposits will be
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automatically applicable for NRE term deposits for periods 1 year and above.
• Also, interest rates on NRE term deposits cannot exceed the interest rates on domestic term deposits as per the extant RBI guidelines.
FX.37/2011-12 Dt.12.01.2012
FCRA (Foreign Contribution (Regulation) Act), 2010 - Effective From 01.05.2011
According to RBI, guidelines on Foreign Contribution (Regulation) Act, 1976 stands repealed and Foreign Contribution (Regulation) Act, 2010 has come into force with effect from May 1, 2011.
Most important salient features of the said Act are given in the Annexure to this circular. Some of the points are given below for the immediate reference of staff:
Registration certificates have validity period under the new Act. It is the responsibility of the branches concerned to ensure that the foreign contributions are received in the accounts which have valid, unexpired registrations only.
Branches shall go through the details on the individual FCRA accounts and block credits into the accounts in CBS system if the related FCRA certificates are found expired and follow up with the customer for renewal of the FCRA certificates.
It is mandatory for every bank receiving foreign contributions under FCRA, 2010 to report details of such remittances in the prescribed format to Govt, of India within the stipulated time. All our branches should send the details of such foreign contributions received, every half year as at the end of March and September to CO/ ID through the concerned Zonal Offices.
For more accuracy and monitoring of FCRA data, separate CBS product codes are introduced and branches should migrate the existing FCRA accounts to the new product codes.
FX.40/2011-12 Dt.09.02.2012
Sale of Travellers’ cheques– Empanelment of various agencies
Arrangements have been made with the following authorised money changers located in different parts of the country to provide Travellers’ Cheques at the door steps of our branches directly.
M/s India Cements Capitals Limited M/s FRR Forex Pvt Ltd. M/s Transcorp International Ltd M/s Medpat Finance Limited M/s TT Holdings and Services Ltd.,
(Subsidiary of TATA Capitals Ltd)
Process under the arrangement: Branches shall place orders with the nearest branch of the
agency for their requirement for further supply to customers.
The TCs will be supplied within a short duration to our branch by the agencies.
The required documentation as per KYC/AML guidelines will be collected from the customers by the agencies.
The relative sale voucher will be raised in the name of the respective customer and acknowledgement of the customer will be obtained for having delivered the exchange. A remark will be made on the sale agreement mentioning as “Indian Bank reference”
Bank will make payment in equivalent Indian rupees on the same day as per agreed rate.
In case of EEFC settlement (in foreign currency), they will prevail upon our bank to provide swift copy of the relative settlement on the same day and submit settlement details.
In case of EEFC settlements, charges will be levied by them, in lieu of exchange and applicable service charges.
The agencies take only exchange margin, service charge and service tax. Charging of commission at 1% is left to the bank and the entire commission will be income for the branch.
In addition to the exchange margin (maximum 40-50 paisa) charged by the agencies over and above the prevailing inter-bank rate, our branches can add some cushion and take this margin as exchange commission.
Under this arrangement, no stock holding of TCs is required, which saves us from problems related to house keeping considerably. Further holding of stocks of TCs in odd currencies involve high risk.
The reimbursement in foreign currencies towards sale of TCs will be taken care by the agencies themselves and our bank need not send any payment message for the same.
FX.43/2011-12 Dt.22.02.2012
GENL Pension related recoveries by branches – Credit through C2C. In order to avoid reconciliation problems at CPPC, HO: TMD has modified the Pension Web Module for entering the pension recoveries in the Pension Recovery Menu. In this Menu, the maker after entering the PPO number of the pensioner concerned from whom the recovery is made has to mention the reason briefly in the narration column and on transmitting by the checker for authorisation, the system will display a 4 digit Advice Number. The officer concerned has to note this system generated 4 digit advice number and incorporate it in the C2C 20 digit Reference Number as the last 4 digit number without fail. In
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the Pension Web package, this 4 digit advice number will run from 1001 to 9999 every month and it will be initialized on the first day of subsequent month by HO: TMD.
In the C2C Reference Number, the New Service Numbers allotted for reporting pension recoveries are as follows:
1. Recovery of excess paid to pensioners – Service No. 50
2. Reimbursement received from SBI/Other Associate banks for which debits are available with CPPC – Service No.52
3. Other pension related recoveries– Service No.54
Branches should exercise sufficient care in selecting & entering the correct/relevant Service Number as given above, while making the C2C credit posting to CPPC. Relative screen shots are given in the annexure to the circular for the guidance of the branches.
With this revised process, CPPC will be able to reconcile the pension recovery reported in the Pension Web module with that of the credit entry made to CPPC by branches through C2C and refund such excess pension paid to the Pension Authorities without delay and avoid payment of penal interest.
Staff Accountability will be fixed on the officer concerned for selecting the wrong Service Number while making the refund of pension recovery through C2C
GENL.1/2011-12 dt.01.04.2011
Endorsing copies of letters, e-mails replies by Officials at Branch / Zonal level to the addresses/ e-mail of Governor / Top Management of RBI According to RBI’s instructions, junior officer at branches/ZO who are in the practice of endorsing copies of letters, e-mail replies sent to complainants to the addresses / e-mail IDs of Governor / Top Management of RBI, shall if considered necessary may be marked to CGM, CSD by post or email at [email protected].
GENL.10/2011-12 dt.25.04.2011
RBI’s Approach Paper on Automatic Data Flow from Bank to RBI A “Roadmap”, for automating all the 200 RBI reports to flow from Banks to RBI, had been submitted to RBI. As per schedule the automation
process has commenced from 01.04.2011 and is to be implemented successfully before 31st, March 2013 in a gradual and phased manner. MIS Department has displayed the error lists in the following areas:
• CISLA errors covering Sub_sector_code, Sanctioing authority codes, security codes, IB_codes, etc. for all the loan products including Base Rate Products.
• An exclusive error cleaning tool for BSR Organisation codes
• Home Loans, Loan against deposits, Jewel loans without security value
• Loan terms not updated correctly and accounts where repayment schedule had not been generated.
• List of accounts which are not updated with Review and renewal details.
• Interest rate wise distribution of advances
Branches should correct the data in CBS, based on the error codes displayed in the website. Branches shall the circular for further guidelines.
GENL.17/2011-12 dt.16.05.2011
Revised Guidelines on Submission of Suspicious Transaction Report (STR) under the Provisions of PMLA 2002 – Implementation of IBA recommended 88 new AML Scenarios In making the STR detection more meaningful, the Working Group of IBA on Parameters for Generating Suspicion, suggested new specifications consisting of 88 AML Scenarios wherein the Banks are required to provide information about the source of Alert and indicators for detection of Suspicious Transactions. Of these 88 Scenarios, 61 Alerts are transaction based while the remaining 27 Scenarios are based on Customer Behaviour Patterns. The list of 27 Scenarios for which the Branches are required to submit Suspicious Transaction Report (STR) are given in the Annexure to this Circular. Branches shall to go through the indicative list of Alerts and ensure that STRs are filed on the above instances also with immediate effect in addition to the existing pattern of Reporting.
GENL. 19/2011-12 dt.25.05.2011
Settlement of Failed ATM Transactions & Payment of Compensation RBI has modified the directions on Settlement of Failed ATM transactions as follows:
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a. The time limit for resolution of customer complaints by the issuing banks shall stand reduced from 12 working days to 7 working days from the date of receipt of customer complaint. Accordingly, failure to re-credit the customer’s account within 7 working days of receipt of the complaint shall entail payment of compensation to the customer @ Rs.100/- per day by the issuing bank.
b. Any customer is entitled to receive such compensation for delay, only if a claim is lodged with the issuing bank within 30 days of the date of the transaction.
c. The number of free transactions permitted per month at other bank ATMs to Savings Bank account holders shall be inclusive of all types of transactions, financial or non-financial (Only Five Transactions free of charge per month including balance enquiry etc).
d. All disputes regarding ATM failed transactions shall be settled by the issuing bank and the acquiring bank through the ATM system provider only. No bilateral settlement arrangement outside the dispute resolution mechanism available with the system provider is permissible. This measure is intended to bring down the instances of disputes in payment of compensation between the issuing and acquiring banks.
These directions were issued under section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007). Non-adherence to the provisions of this circular shall attract penalty as prescribed under the Payment and Settlement Systems Act 2007 (Act 51 of 2007).
GENL.22/2011-12 dt.31.05.2011
NPA Management – Assignment of NPAs to Asset Reconstruction Companies (ARCs) – Continuation of SARFAESI / pending suits and filing of suits – Formats to be used. As two ARCs viz. Reliance Asset Reconstruction Company (RARC) and Asset Reconstruction Company of India Limited (ARCIL), are involved in the process of recovery, HO:Legal Dept. evolved a common format of various documents / formats, which could be utilized with appropriate modifications / deletions depending on the ARC involved. However, these formats are being made use of by branches, without making appropriate changes in the draft.
Branches should incorporate the correct name of the trust in the appropriate blank spaces provided in the format and shall refer the circular regarding issues relating to RARC and ARCIL Lapse by the branches, in this regard may lead to litigation. List of accounts wherein waiver of legal action is to be taken should be provided to HO: Recovery Dept. at least two months in advance before the accounts become time barred.
Genl.25/2011-12 dt.13.06.2011
Board directions to include one Pensioner as member of the Committee in Branches where large number of pension accounts are handled In view of the ACB’s directions, Branches where large number of pension accounts is handled may include one pensioner also as member of the Joint Customer Service Committee with immediate effect. However, the total members from customers’ side may be restricted to only 3.
GENL.29/2011-12 dt.24.06.2011
Assigning Threshold Limit for Accounts To facilitate a more effective transactions
monitoring through the system, assigning the Threshold Limit for all the new deposit accounts (SB / CA / TD) and OD / OCC accounts will be made mandatory with effect from 11/07/2011. Branches shall mark the Threshold Limits as per the norms given in the Policy viz. (i) Accounts of individuals: Rs.10 lakhs or 25% of annual income whichever is higher, (ii) Accounts of Business Enterprises: Rs.10 lakhs or one month turnover whichever is higher
For all the existing deposit accounts opened up to 10/07/2011, the threshold limits shall be automatically updated as Rs.10 lakhs in the CBS system. Branches should suitably modify the Threshold Limit of all the existing accounts based on the proper assessment of the Customer’s income.
GENL.30/ 2011-12 dt.30.06.2011
Adjustment of ATM Cash by ATM attached branches Change in Accounting of Excess ATM Cash
To overcome this procedural lapse of some of the ATM attached branches not transferring the excess ATM cash on the same day, the following change in the accounting procedure of reporting excess ATM cash to ATMSC is put in place:
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ATM attached branches should keep the excess ATM cash (if any) found in their ATM while doing EOD operations, in the respective cassettes in the ATM itself and increase the ADMIN Cash to that effect. The Branches should ensure that admin balance, physical cash balance and journal print balance are tallied after the above increase and the same should be reported to ATMSC immediately.
Henceforth ATM branches should not transfer such excess ATM cash to their Sundry Deposit Account.
GENL.43/2011-12 dt.05.09.2011
Launch of Indian Bank Mastercard “Platinum Debit Card”
Indian Bank MasterCard – ‘Platinum Debit Card’ has been launched by our Bank. The salient features of the card are: 1. Daily ATM cash withdrawal limit of Rs.50000/- 2. Daily POS/Online transaction limit of Rs.100000/- 3. Daily aggregate limit of Rs.150000/- 4. Rewards and offers by the MasterCard network through
Discounts, Hotels, Club Membership, Dining, Shopping and privileged access to Airport lounges, etc.
5. International Cardholder benefits offered periodically by MasterCard International will be available.
6. Indian Bank MasterCard Platinum Debit card is signature based and accepted at 32 million locations in more than 210 countries and territories.
In addition to the above, transactions done using this card on POS and Online earns a higher revenue share for the Bank.
GENL.53/2011-12 dt.03.10.2011
AMC Charges for Maestro / MasterCard Debit Cards Henceforth, AMC charges on Debit Cards are levied as follows, except for the Senior Citizen Debit Cards and Biometric Debit Cards:
Maestro Debit Card
MasterCard Debit Card
One year from the date of first use
FREE FREE
From Second year Onwards
Rs.50/- per year + applicable taxes
Rs.50/- per year + applicable taxes
The date of cut off for identifying the Cards to be charged will be 30.09.2011. The charges will be debited through the CBS system.
GENL.54/2011-12 Dt.03.10.2011
Digital Certificates issued to officers of our Bank Officers provided with Digital certificate, who are proceeding on their Retirement / VRS / Resignation / Suspension / Extra ordinary leave and on transfer have to surrender the application of request for revocation and surrender the USB Token to Branch Manager / Head of the Department.
The format for Revocation / Suspension / Activation Request may be downloaded from our INTRANET > Downloads.
Branches should forward the revocation application on the same day of relief to HO:BOD by FAX ( 044-2813 4027).
RA office has forwarded the list of Officers who are holding live Digital certificates to Zonal Offices concerned. Zonal Offices should update the same while forwarding fresh / renewal application for Digital certificate to RA Office for follow up and necessary action.
GENL.63/2011-12 Dt.09.11.2011
Fraudulent encashment of cheques issued by account holders as ‘specimen’ to Finance Companies Instances have come across of claims being made by some account holders contending that the cheques given by them as “specimen” to representatives of finance companies were misused and encashed from their accounts.
Hence, customers need to be cautioned to exercise vigil and they should first verify the credentials of persons posing themselves as representatives of finance companies. If the customer is satisfied about the credentials of the marketing personnel they may at best hand over only a xerox copy of their cheque leaf to them. After all, specimen cheque leaf is demanded only for the purpose of correctly recording essential bank account details such as bank, branch, MICR number, IFSC number, account number, etc. and this requirement can well be met by providing a xerox copy of the cheque leaf.
GENL.65/2011-12 Dt.12.11.2011 Uploading of auction notices issued under SARFAESI Act in the website “tender.gov.in” - Reg.
According to the Ministry of Finance, Government of India, any sale notice issued by Recovery Officers of DRTs under Recovery of Debts due to Bank and Financial Institution
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APRIL 2011 – MARCH 2012
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(RDDBFI) Act should be uploaded in the website “tender.gov.in”.
Similarly, Sale Notices issued by Authorised Officers (AOs) of PSBs under SARFAESI Act should also be uploaded in the website “tender.gov.in”, so as to ensure maximum publicity and better response for sale.
Henceforth, no sale under DRT or SARFAESI can be done without auction notice being put on the said website for at least 30 days.
Branches/Zonal Offices shall further refer circular no.Genl.83/2011-12 dt.20.12.2011, in this regard.
GENL.67/2011-12 Dt.17.11.2011
Revision of KYC Documents for Opening of Accounts With effect from 28.11.2011, the letter issued by the UIDAI can be accepted as an officially valid document for opening bank accounts without the limitations applicable to ‘Small accounts’.
While opening accounts based on Aadhar, Branches must satisfy themselves about the current address of the customer by obtaining required proof of the same as per extant guidelines.
Based on the above guidelines, following changes have been made in CBS:
1. Deactivation of ID “ID Acceptable to Manager”
2. Introduction of the following IDs: a) UIDAI – Aadhar Card b) School Student Identification Card c) Photo attested by Self d) Address certified by Self e) Photo attested by Introducer f) Address certified by Introducer
The ID mentioned in (a) together with address proof can be used for opening ordinary accounts. The IDs mentioned from (b) to (f) should be used for opening “NO FRILL/SMALL” accounts only.
GENL.69/2011-12 Dt.21.11.2011
Entrusting Legal matters to Advocates
Government of India directed both the Bank and DRT to resolve all DRT cases pending for more than two years before March 2012. Hence, Branches shall take up the matter with Advocates. Recovery Officers shall also issue arrest warrants based on Recovery Certificates in unsecured loans. Taking advantage of the new
guidelines, branches / Zonal Offices shall take up the pending cases effectively with Recovery Officer/ Presiding Officers of DRTs and maintain liasioning with them.
GENL.71/2011-12 Dt.23.11.2011
Joint custody of Strong Room Keys in branches with One Officer
Hence forth, in branches where there is only one Officer available, one set of keys of the strong room door should be held by the Officer and the other set by the key holding Shroff. However, in branches where there are more than one Officer, keys of the Strong Room door should be held in the Joint Custody of the Officers. All other existing guidelines followed in the branches, with respect to custody of Safe / Grill keys given in the Manual of Instructions and earlier circulars remain unaltered.
GENL.75/2011-12 Dt.28.11.2011
KYC Norms – Customer Identification Requirements for Walk-in Customers
The indicative Scenarios outlined on submission of Suspicious Transaction Report (STR) under the Provisions of Prevention of Money Laundering Act (PMLA), 2002, are primarily based on Customer Behaviour, including attempted / failed transactions, which could be identified only at the Branch level.
In this connection, Branches may please note that identification, assessment and reporting of such risks should also cover the transactions attempted / carried out by a non-account based customer, that is a walk-in customer and Branches should verify the Customer’s Identity and address, where the amount of transaction is equal to or exceeds rupees fifty thousand, whether conducted as a single transaction or several transactions that appear to be connected.
Further, if the Branch has reason to believe that a customer is intentionally structuring a transaction, into a series of transactions below the threshold of Rs.50,000/-, in such instances, the Branches should verify the customer's identity and address and consider filing a suspicious transaction report (STR).
GENL.82/2011-12 Dt.08.12.2011
Waiver of Service Charges for Intercity Transactions
Intercity charges has been waived (Indian Bank’s Customers remitting money to an account
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of any other branch of the Bank situated outside city) with immediate effect.
However customers / non customers remitting money to an account of any other branch of other bank are required to pay the charges as applicable on NEFT / RTGS transactions (as per their option) for that amount.
GENL.85/2011-12 Dt. 22.12.2011
GENERAL Wireless Access Protocol (WAP) Based Mobile Banking Facility
Indian Bank’s WAP based Mobile Banking is an innovative and comprehensive module providing Enquiry Services, Funds transfers (Intra bank & Other bank) and Utility Bill Pay Services through Mobile Phone.
Customers eligible for accessing WAP based Mobile Banking:
WAP based Mobile Banking is presently available to Individuals/Sole Proprietary concerns and Joint accounts with E or S facility only. Partnership Firms, Companies, Trusts, Clubs, SHGs, HUFs, and accounts operated by persons in fiduciary capacity are not permitted.
Our existing mobile banking customers having valid MPIN can avail our WAP based Mobile Banking services immediately by submitting “Request Letter - Cum - Undertaking for Enabling Funds Transfer through Mobile Banking”. The customers who do not have mobile banking facility need to apply for mobile banking along with the request letter for mobile funds transfer and then avail WAP mobile banking.
Providing the mobile number in the application is mandatory since the same has to be updated in customer details menu in CBS by the branch.
Branch shall process the request through RM module by selecting the user group as “mobile funds transfer group - 444 (or) 555”. With regard to delivering of MPIN to the customer and activation of services in RM module are as per existing practice.
Login to WAP based Mobile Banking:
The customers have to access https://www.indianbank.net.in/wap to login to our WAP mobile banking module through their GPRS enabled mobile handsets. The customer has to
login by entering his Login ID (CIF No), Password (MPIN) & Image Text (Random Text).
OTT is a One Time Token to be used as additional security while adding beneficiary / making funds transfers. Before login to WAP banking, user has to send SMS through his mobile as: OTT <MPIN> to 9444394443 (eg. OTT 1234). After receiving the OTT, the user can login to WAP site and make funds transfers using the OTT received. The OTT received is valid for 20 minutes only and the customer can use the same OTT for more than one transaction also, if done within the validity time. Hence, within 20 minutes, the user has to complete the transactions (by using the same OTT) through WAP module.
Branches shall refer this circular for the detail write-up regarding the main menus which are displayed in the mobile banking screen.
With the above options, the customer can enquire about his/her accounts linked with his CIF, make funds transfers (Intra bank & Other bank) and pay his/her utility bills.
GENL.92/2011-12 dt.21.01.2012
Guidelines on Customer Risk Categorization Review Bank has adopted the following
quantitative parameters for Review of Customer Risk Categorization: Turnover in the Accounts (Credit Summations) exceeding Rs.10.00 lacs in an Individual/ Association / Clubs Account and Rs 50.00 lacs in other accounts in the past twelve months (twelve Months preceding the Risk Review Date)
Turnover / Income based parameter, for reviewing the Customer Risk Categorisation, as indicated in the KYC / AML Policy, is furnished below:
Category / Constitution High Risk Medium Risk Low Risk
Individuals Above Rs.50 lakhs
Above Rs.10 lakhs and below
Rs.50 lakhs
Upto and inclusive of Rs.10 lakhs
Sole Proprietary concerns
Above Rs.5 Crores
Above Rs. 1 Crore and below
Rs.5 Crores
Upto and inclusive of Rs. 1 Crore
Partnership firms
Above Rs.10 Crores
Above Rs.5 Crores and
below Rs.10 Crores
Upto and inclusive of Rs.5 Crores
Limited Companies
Above Rs 50 Crores
Above Rs.10 Crores and
below Rs.50 Crores
Upto and inclusive of
Rs.10 Crores
Associations, Clubs, etc.
Above Rs.50 lakhs
Above Rs.10 lakhs and below
Rs.50 lakhs
Upto and inclusive of Rs.10 lakhs
Trusts (Private Trusts)
All accounts irrespective of their income / receipts / turn
N A
NA
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APRIL 2011 – MARCH 2012
45
over
Trusts (Public Trusts)
----
All accounts irrespective of their income / receipts / turn
over
NA
While reviewing the risk classification, based on the above turnover criteria, in conjunction with the Customer Type (constitution), Branches are advised to bear in mind that other parameters, that do have a bearing on customer risk perception, such as social / financial status of the customer, nature of business / activity, domicile status & type of product / service availed by the customer should be also given due consideration. Besides, the turnover in the account is indicative and capital receipts, if any, are to be factored, while reviewing the risk categorisation. The Indicative ‘Risk Matrix’ on Customer Risk categorization process is given in the Annexure 1 to this Circular, for immediate Branch Reference and guidance.
GENl.93/2011-12 dt.23.01.2012
Amendment in Rule 114B of the Income Tax Rules, 1962
It is mandatory to quote PAN for persons entering into those transactions which are covered under Rule 114B of the Income Tax Rules, 1962 and such transactions are - • Payment in cash exceeding Rs.25000/- at any one time to
a tour operator or to an authorised person as defined in clause (c) of Section 2 of the Foreign Exchange Management Act, 1999 in connection with tour to any foreign country.
• Making application to Banking Company to which the Banking Regulation Act, 1949 apply or to any other company for issue of debit card.
• Payment of an amount aggregating fifty thousand rupees or more in a year as life insurance premium to an insurer as defined in clause (a) of Section 2 of the Insurance Act,1938 (4 of 1938).
• Payment to a dealer- o Of an amount of five lakhs rupees or more at any one
time or, o Against a bill for an amount of five lakhs rupees or
more for purchase of bullion or jewellery.
GENL.99/2011-12 dt.04.02.2012 Service Charges on attestation of e-payment mandate form.
In order to comply with Government direction, the charges on attestation of e-payment mandate form is waived with immediate effect for individuals including special category of customers like pensioners, rural customers opting for e-
payment. However the charges for non individuals opting for this facility remain unchanged.
GENL.100/2011-12 dt.09.02.2012 Clarification on obtention of PAN for issue of Debit cards Based on the opinion given by our Tax Consultants, branches can obtain Form 61 (to be submitted by person who have only agricultural income and are not in receipt of any other income chargeable to tax) or Form 60 from others, in lieu of PAN, for issuing ATM / Debit Cards. ATM cards can be issued to NRE (SB) customers without obtention of PAN or Form 60 / 61.
GENL.114/2011-12 dt.26.03.2012
Disabling Cash Retraction Feature in ATMs Cash retraction feature in all the ATMs has
been disabled. Hence branches shall educate the customers on the consequences of cash retraction and the reasons for disabling this facility.
The following action plan for disabling the cash retraction feature in various models of ATMs installed by our bank:
For Lipi and Vortex ATMs, Necessary software will be installed by engineers in each ATM. For NCR ATMs, the message mode settings are to be changed by the branch in the supervisory mode of the ATM as instructed vide CO,TMD letter HO/TMD/ATM/452/ 2010 -11 Dated 12.03.2012, addressed to all the zonal offices. For Diebold ATMs, the Cash retraction feature has been disabled centrally at the ATM switch.
Branches shall verify that the cash is not getting retracted, if not collected by the cardholders. Message as given in the Annexure to the circular has to be displayed in the ATM room for the attention of the ATM users.
Whenever the ATM software is modified or re-installed by ATM engineers, branches should ensure that the cash retraction feature has been disabled in the new software also.
GENL.115/2011-12 dt.26.03.2012
HRM Nodal Officer for Customer Service / Principal Code Compliance Officer (BCSBI) and Public Information Officer under Right to Information Act 2005 Branches have to make suitable modifications in their notice boards and display as under:
Sri. V.Srinivasan, Nodal Officer for Customer Service, General Manager
Sri. V.Srinivasan, Principal Code Compliance Officer General Manager
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(P&D/MCC) Indian Bank, Head Office, 66, Rajaji Salai, CHENNAI 600 001 Telephone: 044- 25226655 Fax No : 044- 25221532 Email : [email protected]
(P&D/MCC) Indian Bank, Head Office, 66, Rajaji Salai, CHENNAI – 600 001 Telephone:044-5226655 Fax No : 044- 25221532 Email:[email protected]
Sri. K.G.Balasubramanian Public Information Officer (PIO) under RTI Act, Deputy General Manager (Law) Indian Bank, Head Office, 66, Rajaji Salai, CHENNAI 600 001 Telephone: 044- 25260339 Fax No :044- 25221532 Email:[email protected]
Sri. V.Srinivasan, First Appellate Authority (FAA) under RTI Act. General Manager (P&D/MCC) Indian Bank, Head Office, 66, Rajaji Salai, CHENNAI – 600 001 Telephone: 044- 25226655 Fax No : 044- 25221532 Email :[email protected]
HRM.01/2011-12 dt.01.04.2011
Interest on Staff Provident Fund Accounts and Loan against PF / RWPF loan. The Trustees of the Indian Bank Staff Provident Fund has decided to pay interest at 8.50% p.a with effect from 01.04.2011 on Indian Bank Staff PF accounts.
Consequently, the rate of interest on loan against Provident Fund and Refundable withdrawal loan is fixed at 9.50% with effect from the said date. The revised interest rate is applicable to the existing as well as new loan accounts.
HRM.18/2011-12 dt.19.05.2011
Modification in Nomination of Disciplinary Authority / Concurrent Discipline Authority / Appellate Authority / Reviewing Authority for Officers Chairman and Managing Director in exercise of the powers conferred on him under Regulation 5(1) of the Indian Bank Officer Employees’ (Discipline & Appeal) Regulations, 1976 effected the following nomination of the Concurrent Disciplinary Authority for officers in Scale IV.
To function as Name of the Official Concurrent Disciplinary Authority for Officers in Scale IV for Head Office and Zonal Cases
Shri S.V.Raghunathachari Deputy General Manager HO: T M D,Chennai
HRM. 20/2011-12 dt.25.05.2011
Categorisation of Branches as on 31.03.2011 Categorisation of branches as on 31.03.2011, including Specialised branches has been reviewed as below as per norms approved by the Board. The details of the branches falling under different Categories/ Scales accordingly are furnished in Annexure I and Specialised branches in Annexure II to this circular.
The norms of business criteria for categorization of branches are as follows:
Category Of Branch
Business Criteria (Average Aggregate
Deposits And Advances During The Last Two Years)
IncumbencyScale
a) Small Below Rs.5 crore I b) Medium Rs.5 crore and above but
below Rs.25 crore II
c) Large Rs.25 crore and above but below Rs.75 crore
III
d) Very Large Rs.75 crore and above but below Rs.250 crore
IV
e) Exceptionally Large
Rs.250 crore and above V
HRM.21/2011-12 dt.01.06.2011
Reimbursement of Lodging Expenses to Officers in ScaleI to Scale V, while travelling on duty
Enhancement in the existing ceilings on reimbursement of lodging expenses incurred by officers in Scale I to Scale V while on official duty when they stay in the non-ITDC hotels w.e.f. 01.07.2011 has been approved by the Board as under:
Maximum Room Tariff permissible (exclusive of admissible taxes) (in Rs.)
Major A Class Cities Area I Other Places
Grades of
Officer Eligibility
to Stay
Exist Revis Exist Revis Exist Revis Junior Management Gr Scale I
1 * Hotel (Non-AC) 1000 1600 750 1200 500 800
Middle Management Gr Scales II & III
2 * Hotel (Non-AC) 1500 2500 1000 1500 800 1200
Senior Management Gr Scales IV & V
3 * Hotel 2500 3500 1500 2000 1300 1800
Details regarding classification of cities as per 2001 census are given in the circular. All other extant conditions remain unchanged.
HRM.34/2010-11 dt.06.07.2011
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47
Reimbursement of expenses towards Transport of personal effects on Transfer of an Officer – Revision in Rates
The revised rates communicated by Indian Banks Association (IBA) towards transport of personal effects of officers on transfer from one place to another has been approved by the Board as under, which will be effective from 01.04.2011.
Distance in Kilometers
Rate per Tonne per Km.
Upto 1000 Kms. Rs. 2.80 Beyond 1000 kms. Rs. 2.00
The above rates will apply on slab basis. The officers transferred to shorter distance upto 300 kms., the reimbursement may be permitted upto the amount chargeable for 300 kms, i.e. 300 x weight x Rs. 2.80.
Officers who are transferred into and out of hilly terrains, will be reimbursed two times the applicable rate for the distance covered in hilly terrain and the balance distance at normal rates. All other extant guidelines remain unchanged.
HRM.35/2011-12 dt.06.07.2011
Reimbursement of TA / DA to serving Employees/ Ex-Employees (Including Retired, Dismissed) in case of Attendance before Courts / Tribunals
Payment of TA/DA to serving employees/ex-employees, including retired or dismissed employees, in case they have to attend proceedings before a Court of Law/Tribunal/ Inquiring Authority so as to depose as a prosecution witness or as a management witness has been approved by the Board. The circumstances under which TA/DA shall be paid to serving employees/ex-employees are detailed in the annexure to this circular.
HRM.39/2011-12 dt.07.07.2011
Revised Fitment Formula for Officers on Promotion to Higher Scales of Pay
IBA has formulated a revised fitment formula along with Fitment Table for Officers promoted to higher scales of pay on or after 1st November 2007 and the Board has approved the same for its implementation. Details of the procedure for fitment of pay of officers on promotion and the fitment table / chart for
promotions effected on or after 01.11.2007 are given in Annexure I & II of this circular.
The basic pay and or due date of next increment advised earlier for officers / executives promoted from Scale III and above on or after 1st November 2007 shall be reviewed and the eligible arrears shall be paid along with salary by the branch / office where the officers are working at present / from where the officers retired.
HRM.40/2011-12 dt.07.07.2011
Staff Housing Loan Scheme to Officers and Award staff – Introduction of Additional Features in the existing scheme - reg Board has accorded permission for effecting the following modifications in the SHL Scheme introduced vide circular no. HRM.163/2010-11 dated 31.12.2010.
1. Service Eligibility: All confirmed employees with minimum 2 years of completed service shall be eligible to avail SHL.
2. Second SHL for acquiring Second Property: Second Staff Housing Loan is allowed to all employees for acquiring second property at any place / centre provided the total number of properties held in the name of staff and spouse (including the proposed one under the second SHL) does not exceed two.
For acquiring second property under second SHL, the limit will be the maximum eligible limit less already availed limit (including for repairs / renovations availed already either closed or live) by the employee.
Further, as a one time measure it has been agreed to permit those employees who have not kept the surplus gained from the sale of the first property in an in-operative account to avail Second SHL.
3. Take-over of Loans: The take over of Home Loans availed by employees (for the purpose of purchase of second property) from our Bank / other Banks is permitted (No margin is prescribed and no holiday period). In respect of home loans availed from our Bank, take over of a part of the same is also permitted.
Provided the total number of house / flat properties (including the proposed) in the name of staff and spouse does not exceed Two.
4. Repayment Period: There is no change in the repayment period. However, in case the
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residual service is less than 240 months, the repayment period shall be fixed in such a manner that the Principal and the Interest accrued are repaid during the service of the employee in the ratio of 3 : 1.
Details regarding Additional Housing Loan for Repairs / Renovations; Availment of the Staff Housing Loan by Husband and Wife; Mortgage Insurance and Registration of EM; Maximum Quantum eligible for Repairs / Renovations of House/Flat not acquired under SHL and other conditions are furnished in this circular.
HRM.46/2011-12 dt. 15.07.2011
Implementation of SAP-HRMS
An end to end solution for the staff transfer process is being implemented as a step of HR processes and systems through SAP-HRMS.
While SAP-HRMS will be used to generate transfer orders as usual by Head Office and Zonal Offices, the processes that follow the transfer orders will be done through the transfer portal by the respective branches/offices which will automatically update the data in SAP-HRMS also. This will thus go a long way in ensuring there are no mismatches in data at any point of time and also bring in uniformity in the processes relating to transfers.
This portal is to be utilized by all branches/offices wherein the Salary Portal has been provided to,
View details of incoming/outgoing transfer orders for their branch/office
Entering data relating to relief of staff members and generating relieving report
Preparation of LPC and generating LPC
Entering data relating to joining of staff members and generating joining report
Generate details of incoming and outgoing transfers for a particular Zone at Zonal Office level and also view bio-data of incoming staff members.
Branches and offices should do the process of preparing relieving report, generation of LPC and joining report through the transfer portal only, with effect from 1st August 2011,.
HRM.49/2011-12 dt.26.07.2011
Provisions of Furniture at the Residence of Officers (Revised Scheme)
The revised scheme for provision furniture at the residence of Officers has been approved by the Board. The new policy cum operational guidelines is furnished in annexure to this circular. The scheme will come into force with immediate effect and hence the old scheme for this purpose shall stand withdrawn.
HRM.50/2011-12 dt.03.08.2011
Group Personal Accident Insurance Policy for all our staff members under Staff Welfare Scheme
Round the clock Personal Accident Insurance cover provided to all employees under ‘Group Personal Accident Insurance Policy”. A new policy with THE NEW INDIA ASSURANCE COMPANY LTD (NIAC) has been taken w.e.f. 02.08.2011 for a period of one year upto 01.08.2012 and the policy No. is - GPA POLICY NO: 710600/42/11/010000007.
The Salient Features of the new Policy remain unchanged with that of the previous year’s policy.
The procedure to be adopted in reporting the claims, documents to be enclosed with the claim forms are given in the annexure to this circular. Staff members are advised to refer the circular for further details.
HRM.52/2011-12 dt.08.08.2011 Dearness Allowance payable for Workmen and Officer Employees for the months of August, September and October 2011
The confirmed All India Average Consumer Price Index Number for Industrial Workers (Base1960=100) for the quarter ended June 2011 is 4314.10
Consequently, dearness allowance to employees is payable for 360 slabs for the period of August, September and October 2011 i.e. an increase of 8 slabs over the current level and the rate of dearness allowance payable to workmen and officer employees shall be 54% of `pay’.
HRM.54/2011-12 dt.09.08.2011
Grant of Interest Free Festival Advance to Staff Members - Enhancement in the Maximum Limits under the Government Scheme Limit of festival advance under the new scheme (Government Scheme) has been revised as
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APRIL 2011 – MARCH 2012
49
follows, with effect from September 9, 2011, for all the staff members who have joined the Bank on or after 06.12.1990:
Officers One Month’s Basic Pay with a Max. Rs.25,000/- Clerks One Month’s Basic Pay with Min. Rs.8,000/- & Max.
Rs.20,000/- Substaff One Month’s Basic Pay with Min. Rs.6,000/- & Max.
Rs.15,000/-
HRM.76/2011-12 Dt.21.10.2011
Job role of Probationary Officers (PO), in the CBS Environment The job role of Probationary Officers has been revisited, so that their services are better utilized. The revised job role of Probationary Officers approved by the TMC is annexed to this circular.
HRM.78/2011-12 Dt.31.10.2011
Reimbursement of Travelling Expenses to Officers for Using their Own Vehicles for Official Duty
The revised rates communicated by Indian Banks Association (IBA) towards reimbursement of travelling expenses to officers using their own vehicles for official duty, will be effective from 30.09.2011 as follows:
Type of Vehicle Proposed rate of
reimbursement rate per km
Four Wheeler – Engine capacity of 1000 cc or more Rs. 9.00
Four Wheeler – Engine capacity less than 1000 cc Rs. 7.00
Motor Cycle & Scooter Rs. 4.50 Mopeds Rs. 3.00
Officers desiring to use their vehicle for official duties should seek prior permission from their respective Zonal Manager by forwarding a true copy of their vehicle Registration Certificate duly attested by the Branch Manager / Higher Authorities. While claiming reimbursement, the initial and final readings of speedometer should be noted on their claim. The above provision is applicable for the journeys performed on duty only.
HRM.91/2011-12 Dt.03.12.2011
Joining of Shri B Raj Kumar as Executive Director of our Bank
In terms of the Notification issued by Government of India, Ministry of Finance, Shri B Raj Kumar has been appointed as Executive Director of our Bank and has assumed charge on 01.01.2012.
HRM.101/2011-12 dt.02.01.2012
Presentation of memento to staff members at the time of retirement
The value of Memento to be presented to staff members retiring on superannuation, has been increased from Rs.5000/- to Rs.7500/-, with effect from January 2012, for all cadres. Permanent Part time employees drawing scale wages will be presented with Memento for an amount proportionate to their scale wages.
HRM Department, Corporate office will be granting the amount through C2C to the respective branches from where the staff members are retiring, during the last week of every month. Branches need not debit SR-II account to pay the cost of the memento.
HRM.104/2011-12 dt.04.01.2012
Implementation of SAP-HRMS- “Staff Work Profile” A new online portal have been introduced
viz., “Staff Work Profile” which is to be utilized for,
a) Entering the work allocation details alongwith the reporting structures of all the staff members in branches/offices and generating the office orders in the form of a report for getting it acknowledged by the staff members;
b) Mapping reporting structures which can be effectively utilized for Performance Management, Appraisals etc;
c) Generating multi-dimensional reports relating to work allocation in various entities at any point of time by the respective controlling offices for effective monitoring of the human resources;
d) Build a comprehensive skill repository based on the areas of work performed by the staff members and use it for various HR initiatives like Competency Mapping, Skill Set Analysis, Training Needs Analysis, Training Nominations etc.;
e) Incorporation of the details of areas of exposure/areas in which a staff member had worked/gained knowledge in the personnel profile/bio-data; &
f) Full fledged implementation of Organizational Management (OM) module in SAP-HRMS.
The operational guidelines, in this regard, are given in this circular.
HRM.105/2011-12 dt.07.01.2012
Correctness of PAN number and responsibility of Staff members to have PAN Card
Furnishing of PAN number of employees is mandatory in all our statutory returns to Income Tax department and in Form 16.
Newly recruited employees on joining the Branch / Office, PAN number has to be entered in the salary site along with the first month salary input. In case, the newly employed staff members
5050
do not have PAN numbers, Branch Managers shall instruct them to apply for PAN number forthwith.
In case PAN number is not available in salary database for any staff member then no remittance of Income Tax can be done for that individual. In case of non compliance the erring employee will be held responsible for any loss / punitive action initiated by Income Tax authorities.
HRM.118/2011-12 Dt.19.01.2012 Promotion Policy for Officers
The revised Policy for promotion of officers from one scale to another in terms of Regulation 17 of the Indian Bank (Officers’) Service Regulations 1979, comes into effect in the place of existing Promotion Policy for officers.
The promotion policy for officers - Scale I to III is given in the annexure – A and the promotion policy for officers - Scale IV and above is given in the annexure – B of this circular.
HRM.120/2011-12 Dt.23.01.2012
Staff Vehicle Loan Scheme to Officers and Workmen Employees
The quantum of Conveyance Loan has been increased, Car Loan for Clerical Staff has been introduced and the eligibility criteria modified. The salient features of which are given below: 1. Car Loan
Category of Staff
Limit Margin
Rate of Interest
Recovery
Officers All
confirmed officers drawing
Basic Pay of
Rs.19400/- p.m or more.
Rs.7,00,000
20%
Base Rate (simple)
180 equal monthly
instalment. Principal
and Interest accrued in the ratio of
3:2.
Clerks Clerical staff
members drawing
Basic Pay of
Rs.15,100/- p.m
(IX BPS) or more.
Rs.3,50,000
20% Base Rate (simple)
180 equal monthly
instalments. Principal
and Interest accrued in the ratio of
3:2.
2. Two Wheeler Loan Category of
Staff Limit Margin Rate of
Interest Recovery
Officers All Confirmed Officers in the Bank’s service
90,000/- 10% Base Rate (simple)
84 months. Principal
and Interest accrued in the ratio of
5:1. Award Staff Clerks: 10% Base Rate 84 months.
All confirmed employees.
75,000/- Substaff: 40,000/-
(simple) Principal and Interest accrued in the ratio of
5:1. 3. Loan for Repair of Motor Car
Eligibility Loan Amount
Periodicity
Rate of Interest
Margin
Repayment
All confirmed officers in the Bank drawing
BP of 19400/- pm
or more. Clerical staff
members drawing
Basic Pay of 15,100/- p.m. (IX BPS) or
more.
1,00,000/- for Officers
and
50,000/- for Clerical Staff
Max. Twice in entire career.
Base Rate (simple)
20% 84 mths.
Principal and Int acc. in
the ratio of 5:1.
4. Take Over of Existing Car Loan Availed Under Vehicle Loan Scheme
The employees who have already availed car loan under vehicle loan scheme from our Bank / other Banks (with prior permission where applicable) shall be allowed to convert their existing loan under revised loan scheme subject to compliance of other provisions of this scheme. The maximum amount permitted to be taken over shall not exceed the maximum ceiling as provided for in the scheme. 5. Loan for Second Hand Car
There is no restriction for purchase of used cars/second hand vehicles under the scheme. However, such requests received from officers/award staff shall be considered, subject to fulfilment of certain conditions. The important terms and conditions of the revised scheme are furnished in the annexure of this circular. Terms and conditions for Conveyance Loan stand modified accordingly and employees will be eligible for sanction of Vehicle Loan only under this scheme. The scheme shall come into force with immediate effect.
HRM.122/2011-12 Dt.27.01.2012
Presentation of Milestone Award to Staff Members The revised guidelines on presentation of
Milestone Award, w.e.f 01.02.2012 is as follows: “Staff members, on completion of 25 years of service or at the time of superannuation whichever is earlier, subject to a minimum service of at least 10 years and fulfilling other terms and conditions, shall be presented with Milestone Award”
HRM.131/2011-12 Dt.10.02.2012
Joining of New Chief Vigilance Officer Smt Chitra Subramaniam has assumed
charge as General Manager (Vigilance) / Chief
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Vigilance Officer of our bank on 23.02.2012, on deputation from State Bank of India.
HRM.141.2011-12 Dt.23.02.2012
ADMIN Processing of Electronic Clearing Services (RECS) - Checking / verification of ECS Credits / Debits after posting. All the branches shall verify the transactions based on the reports pushed by Service Branch and the end user, i.e. the home branches shall ensure
i) The correctness of the transactions posted through STP i.e. Name and account number etc., are matching.
ii) Conversion of Old account number in to new CBS account number is correct.
iii) Returns are not done erroneously.
Branches shall inform the discrepancies, if any, immediately to the concerned Service branch.
ADMIN.03/2011-12 dt.09.04.2011
Inter Branch / Bank movement of Cash According to Reserve Bank of India, movements of cash from one branch to another branch of the same bank/other bank, should be for justifiable reasons and the cash-in-transit has to be accompanied by the banks’ representative/s with proper documents/identification and produced to the officials of the District Administration, if required. In case the officials accompanying the cash remittances are not able to produce the necessary documents/identification, it might result in the cash being confiscated by the appropriate authorities. The cash transfers/remittances should be duly covered under insurance.
ADMIN.05/2011-12 dt.19.04.2011
Renewal of Standard Fire and Special Perils Policy of The Bank’s own Buildings The Standard Fire and Special Perils Policy for the Bank’s Owned Buildings all over India has been renewed for the financial year 2011 – 2012 for the period 01/04/2011 to 31/03/2012 with M/s United India Insurance Company Ltd. Chennai – 600 001. The New Policy Number is: 010503/11/11/11/00000003 (Commercial Buildings) 010503/11/11/11/00000004(Residential Buildings) Branches/Offices should specify the above number depending on Building (Commercial or
Residential) whenever claims are reported to the above company during the period 01/04/2011 to 31/03/2012. Assets covered All owned Buildings (Commercial and Residential) of Indian Bank located all over India are covered under this Standard Fire and Special Perils Policy. The policy also covers damages due to Earthquake and Terrorism. (The policy has been taken on the basis of Reinstatement value.) Broad features of the Policy: The Policy covers damage to the building or any part thereof due to Fire, Lightning, Explosion / implosion, Aircraft damage, Riot, Strike and Malicious damage, Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation, Impact damage, Subsidence and landslide including rock slide, Bursting and/or overflowing of water tanks, apparatus and pipes, Missile testing operation, Leakage from Automatic sprinkler installation, Bush fire. Initial reporting on the occurrence of damage Even prior to determination of the magnitude, real nature and the extent of loss,
• On the occurrence of loss or • on the detection of any damage or • any events or acts that are likely to cause a
loss to the Bank’s building, branches should immediately report to the nearest branch of United India Insurance Company Limited under copy to HO/Estate Department and United India Insurance Company Limited Catholic Centre, No.64, Armenian Street, Chennai 600 001. Branches shall refer the circular for further information and guidelines.
ADMIN.08/2011-12 dt.26.04.2011
Banker’s Indemnity Policy for the Financial Year 11-12 The Banker’s Indemnity Policy for the financial year 2011-12 has been renewed with The New India Assurance Company Limited. Chennai.
The new policy number is 710800/46/11/04/00000001
Branches should mention the above policy number whenever claim relating to the year 2011-12, if any, is reported to the above insurance company. This policy covers losses for the period 01.04.2011 to 31.03.2012 and also for losses
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occurred on or after 01.04.2008 and reported within three years from date of loss. The policy covers losses if any, at our Banking Service Centres also with effect from 06.05.2008 as detailed in the circular elsewhere. However losses upto 31-03-2008 (i.e. date of actual loss is prior to 01.04.2008 but discovered during the current year) are not eligible for any cover as our policy for that period was with The Oriental Insurance Company Ltd., D.O. VIII, Chennai-7, who were our insurers for the years 2006-07 and 2007-08 and the retroactive period has also expired on 30.09.2008. BASIC SUM INSURED: In respect of the following clauses viz. (A) to (H), the basic cover available is Rs.10.00 crore (Rupees Ten crore only), for the Bank as a whole. Additional cover available in respect of Clause A (loss on premises) is Rs.40.00 crore and in respect of Clause B (loss in-transit) is Rs.15.00 crore. Other informations regarding Risks covered, important features of the policy, Exceptions, Claim procedures to be followed/ Maintenance of records and Clarifications/ Special instructions are furnished in this circular.
ADMIN.14.2011-12 dt.30.05.2011
Fifth Annual General Meeting of the Bank The Fifth Annual General Meeting of the Shareholders of the Bank was held on Wednesday, the June 29, 2011 at IMAGE.
During the year 2010-11, the Bank continued its sustained volume growth in Revenues, Operating Profit, Net Profit and business and the total global gross business of the Bank crossed Rs.1,80,000 crore mark to Rs.1,81,530 crore as compared to Rs.1,50,886 crore as on March 31, 2010, registering a growth of 20.3%. Other important highlights of performance of the Bank during the year 2010-11 are given below:
⇒ The total Global Deposits of the Bank rose by a 17,576 crore to a 1,05,804 crore from Rs.88,228 crore as at March 31, 2010, with a growth of 19.9%.
⇒ The total Gross Advances increased by Rs.13,068 crore to Rs.75,726 crore from Rs.62,658 crore as at March 31, 2010, registering a growth of 20.9%.
⇒ The Operating Profit of the Bank has registered an increase of 19.8% to Rs.3291.68 crore as against Rs.2,747.35 crore as at March 31, 2010.
⇒ The Net Profit for the year has grown up by 10.2% to Rs.1714.07 crore as against Rs.1,554.99 crore as at March 31, 2010.
⇒ As on March 31, 2011, the Bank’s Gross NPA and Net NPA stood at 0.98% and 0.53%, respectively.
⇒ Earning Per Share and Book Value per share as of March 31, 2011 improved to Rs.38.79 and Rs.184.44 from Rs.35.09 and Rs.154.66 as at March 31, 2010, respectively.
⇒ Capital Adequacy Ratio was at 12.83% as per Basel I and 13.56% as per Basel II.
ADMIN.17/2011-12 dt.03.06.2011
Debiting of Penalties imposed by RBI - Opening of New BGL Head 96397 (Reconciliable) – SR-II A new BGL Head 96397 – SR II – Penalty Imposed by RBI mapped to CGL 2801505005 has been configured. This BGL is configured as Reconciliable – One to Many – Debit preceeding like SR-II BGL.
Sl.No BGL Head –Number
Mapped to CGL
Nature of Debit
01 96397- SR II a/c Penalty imposed by RBI
2801505005 1. Penalties imposed on account of wrong / delayed reporting of ICCOMS. 2. Penalties charged on account of a) forged notes b) shortages c) Mutilated notes found in Soiled Notes Remittance (SNR) sent to RBI.
02 98835 - SR II a/c Admin Office
2801505006 To make good the equal amount of debit for forged / shortages / mutilated notes found in SNR sent to RBI. i.e amount debited by RBI in currency account at Link Branch.
Currency chests and Link branches on receipt of the claim should immediately reimburse the same to the link branch by debiting above BGL accounts only. The amount should then be recovered from the erring staff as per extant guidelines within a week from the date of debit of SR II a/c.
ADMIN.20/2011-12 dt.15.06.2011
Amendment to Manual of Instructions XIII – Compliance 2009
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Further to publication of the first edition of Manual of Instructions XIII – Compliance 2009 during November 2009, amendments to the Manual of Instruction, have been compiled for the benefit of the staff working in the branches / Zonal Offices / Head offices. The compiled amendments are enclosed to this circular.
ADMIN.24/2011-12 dt.27.06.2011
Deduction of Tax at Source (TDS) – TDS Rates to be applied for the Current Financial Year 2011-12
It is noted that there is no change in the TDS rates after passing of the Finance bill 2011 and the same rates are applicable for the Current Financial Year 2011-12 also.
For ready reference of the branches, we reproduce the TDS rates to be applied for the current year 2011-12 is given in the circular.
ADMIN.25/2011-12 dt.04.07.2011
Comprehensive Centralised Insurance Policy for 'Safe, Furniture & Machinery (SFM); Books, Forms, Stationery & Electronic Equipments' kept at Bank's premises all over India
The Comprehensive Centralised Insurance Policy has been taken at Head Office for the Safe, Furniture & Machinery (SFM), Books, Forms, Stationery & Electronic Equipments kept at Bank’s premises all over India for the period 01.07.2011 to 30.06.2012 with UNITED INDIA INSURANCE COMPANY LTD. BRANCH OFFICE NO.010503, CHENNAI TEL: 044 – 25389795, 25384955.
The New Policy Numbers are: SFM - 010503/11/11/11/00000080 Books, Forms and Stationery items - 010503/11/11/11/00000079
and Electronic Equipment items - 010503/44/11/58/30000004
The scanned copies of the above policies and 2010-11 policies are placed as Annexure to this circular, for the benefit of Branches / Offices.
Branches/Offices should mention the above number whenever claims are reported to the above company during the period 01.07.2011 to 30.06.2012.
The Policies cover all the existing SFM, Books, Forms, Stationery and Electronic Equipments (including computer related items and all ATMs) and accessories as well as all purchases made on or after 01.04.2011. Hence all the
Branches/ Offices must ensure that all purchases/disposal made by them every quarter is duly reported to HO (from time to time).
The risks covered are as per Standard Fire & Special Perils Policy for SFM and Books, Forms, Stationery & Electronic Equipment items Policy for Electronic items, including terrorism and earthquake, with reinstatement value. Details are given in the circular.
Other details regarding initial / immediate reporting on the occurrence of Loss; Submission of Claim Forms; Claim for the Loss incurred; Insurance cover for Bank’s vehicle etc. are also given in the circular.
ADMIN.37/2011-12 dt.25.07.2011
Detection of Counterfeit Banknotes – Revised Procedure
In order to ensure that all cases of detection of counterfeit notes at the bank branches / treasuries are promptly reported to the police authorities, the procedure to be followed has been revised and accordingly, branches should adopt the following with immediate effect:
1. For cases of detection of counterfeit notes upto 4 pieces, in a single transaction, a consolidated report as per the format prescribed in the annexure (attached to this circular) should be sent to the police authorities at the end of the month.
2. For cases of detection of counterfeit notes of 5 or more pieces, in a single transaction, FIRs should be lodged with the Nodal Police station / Police authorities as per jurisdiction, in terms of Master circular ibid.
3. Other instructions in the above master circular will remain unchanged.
4. Problems, if any, in implementation, may be resolved in consultation with the Regional Director, RBI, of the State concerned.
5. Progress in the area of reporting should be discussed in the meetings of State level Banker’s Committee, Standing Committee on Currency Management and State Level Security Committee held in various states.
ADMIN.39/2011-12 dt.03.08.201
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Dealing with Counterfeit Notes tendered across counter Branch Managers shall convene a staff meeting and enlighten them on the procedures related to
i) Stamping and impounding of Counterfeit notes
ii) Issue of receipt with Serial number to tenderer
iii) Filing of FIR with Police Authorities as under (a) For cases of detection of counterfeit notes
upto 4 pieces, in a single transaction, a consolidated report should be sent to the police authorities at the end of the month.
(b) For cases of detection of counterfeit notes of 5 or more pieces, in a single transaction, FIRs should be lodged immediately with the Nodal Police station / Police authorities as per jurisdiction.
Admin.56/2011-12 Dt.12.10.2011 Issuance of TDS Certificates to deductees & entering of details of Form 15G / Form 15H/ Lower Deduction Certificates u/s 197(A) /197(1), in Form 26Q.
Branches should enter the details of interest paid to the customers for whom TDS was not deducted in Form 26Q, based on the self-declarations in Form 15G /15H u/s 197(A) or Lower Deduction Certificates issued by Income tax Authorities u/s 197(1) submitted by the customers, by selecting the relevant option “No Deduction u/s 197(A) or Lower Deduction / No deduction u/s 197” provided in the “Deduction Module” of the “Web-based Saral Software” of M/s Relyon Soft.
Branches / Offices may make note of the above and ensure full compliance and avoid facing any adverse proceedings of Income Tax Department and staff accountability.
Admin.62/2011-12 Dt.13.12.2011
Reorganisation of Zones Branches in Bangalore and Pune Zones
were re-aligned and a new Zone, Hubli was formed on 08.11.2011. Similarly, branches in Delhi and Chandigarh zones were re-aligned and a new zone, Karnal was formed on 18.11.2011. With the formation of these two zones, the total number of zones in the Bank has gone up to 33.
Details of branches falling under Hubli and Karnal Zones are given in the annexure to this circular.
Admin.64/2011-12 Dt.24.11.2011
Reorganisation of Zones A new zone, Ghaziabad came into being drawing branches from states of Uttarakhand and Utter Pradesh (hitherto falling under Lucknow and Delhi zones). Similarly, branches of Rajasthan (19) which were under the administrative domain of Ahmedabad zone have now been aligned with Delhi zone. Details of branches now falling under Ahmedabad, Delhi, Ghaziabad and Lucknow Zones are given in the annexure to this circular.
Admin.66/2011-12 Dt.07.12.2011
Reporting Fridays - Section 42 of RBI Act An awareness of the dates of reporting Fridays at the branch level will enable the field level functionaries to monitor all major inflows and outflows of funds in such a manner so as not to unnecessarily inflate the DTL of the Bank on reporting Fridays. Such inflating of DTL will only increase the required level of CRR and SLR and ultimately will lead to increase in cost of maintaining reserve requirements.
Branches shall report all transactions above Rs.5 cr to Treasury branch to enable maintaining of CRR in a better way. The list of reporting Fridays for the year 2012 is furnished in the Annexure I of this circular.
Admin.71/2011-12 Dt.13.12.2011
Scheme of Incentives and Penalties of Bank Branches including Currency Chests based on performance in rendering customer service to members of public
According to the Department of currency Management, Central Office, RBI -
“The policy with respect to payment of incentives to banks for exchange of soiled banknotes and adjudicated banknotes has since been reviewed and following changes have been made.
(i) The incentives will be paid on the soiled notes actually received in the Regional Office of RBI. Banks need not submit a separate claim. Currency Chest branch will have to pass on the incentive to the linked branches for the
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soiled notes tendered by them on a pro-rata basis.
(ii) Similarly, incentive will be paid in respect of the adjudicated notes received along with the soiled note remittances. No separate claim is required to be madeAll other instructions remain unchanged.”
Currency Chests shall liaise with Regional Offices of RBI / Link Office concerned for receiving the incentive amount and pass on the incentive on pro-rata basis to the branches for the soiled notes received.
Admin.72/2011-12 Dt.14.12.2011
