saauraasshhttrraa bggrraammiinn baannkk ï ï ss polliiccyy ... · cooperative societies [macs]...

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SSaauurraasshhttrraa GGrraammiinn BBaannkk’’ss PPoolliiccyy oonn eennggaaggeemmeenntt ooff IInnddiivviidduuaall aanndd KKIIOOSSKK BBCCss//BBFFss

SSAAUURRAASSHHTTRRAA GGRRAAMMIINN BBAANNKK

FFIINNAANNCCIIAALL IINNCCLLUUSSIIOONN DDEEPPAARRTTMMEENNTT HHEEAADD OOFFFFIICCEE RRAAJJKKOOTT

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1. Background

Indian Economy, after passing through several development phases in last Five-six decades, is now poised to come across a crucial stage which would be defined in terms of ‘high rate of expansion combined with inclusive growth’.

Financial Inclusion is one of the most important tools for providing inclusivity to rapid economic growth. Govt’s economic policies are characterized by a marked emphasis in this regard. RBI has also been issuing specific guidelines with respect to financial inclusion through its policy pronouncements since year 2005-06.

Reserve Bank of India had constituted an ‘Internal Group to Examine Issues Relating to Rural Credit and Microfinance’ under Chairmanship of Dr H R Khan. The report dated 19th July 2005 provided the framework for evolution of concept of Business Correspondents and Business Correspondents defined as under:

Business Facilitators: Individuals and Civil Society Organizations (CSOs) engaged for supporting the banks by undertaking non-financial services.

Business Correspondents: Individuals, institutional agents and other permitted entities engaged for supporting the banks for extending financial services.

Saurashtra Gramin Bank endures to ensure greater financial inclusion and increase in the outreach of banking services across all under-banked and un-banked areas of the Saurashtra region of Gujarat. In an effort to substantially increase our market share and penetration in rural areas, ICT and KIOSK/MICRO ATM based Financial Inclusion is being implemented through the BC/BF Model. Experience on the field proves that leveraging the strengths of intermediaries such as BCs/BFs accelerates the process of Financial Inclusion. Therefore, in order to provide guidance to our field functionaries for the deployment of BC/BF in various districts. Based on the H R Khan report’s recommendations, and various instructions/guidelines received from DFS, SLBC & SBI we have drafted our Business Facilitators/Business Correspondent policy as follows:

2. Objective: Objective of issuing policy guidelines; is to:

i). Incorporate changes evolved after adoption of our existing guidelines; ii). Sensitize field level functionaries about the importance of BC/BF tool to extend our

reach; iii). Examine procedural issues related to outsourcing of business to BC/BFs; iv). Formulate operational guidelines about the workflow underlining risks and

responsibilities of all the participants; v). Examine risk factors involved at various stages of work flow and devising risk

mitigates, and; vi). Most importantly to convey it to all concerned that financial inclusion as a welfare

measure is a myth, In fact, it is an investment in future, an opportunity in waiting and it will be commercially prudent to go all out for unexplored opportunity at the Base of Pyramid (BoP).

We have decided to engage Corporate Business Correspondents (Corporate BCs) who will engage individual Business Correspondent Agents for KIOSK model implemented in our Bank. We have engaged Network for Information and Computer Technology (NICT) as our Corporate BC and they are engaging individual BCs for our Bank. The performance of NICT would be reviewed and if required, we will engage other corporate BCs.

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For Business Correspondents, we are having two models in our bank i.e. FIRST model with individual BCs who don’t have devices and are doing various banking works in our bank. We will gradually consider transferring these BCs to KIOSK model on the basis of their performance, eligibility and SSA/Village coverage required. Second model, individual BCs engaged by NICT will operate under KIOSK model. The technology service provider for KIOSK is M/s C-EDGE Technologies Ltd. KIOSK set-up would require as follows: Laptop/Desktop as per requirement Biometric device for finger print authentication Scanner-printer-xerox machine Moreover now the bank has provided MICRO ATM to all KIOSK BCs.

The name of the centre would be CUSTOMER SERVICE POINT (GRAHAK SEVA KENDRA). The premises would have banners displaying:

Details of CSP and the link branch Dos and DONTs Various Services available at CSP BCs would have to wear ID card provided by the bank/NICT. On monthly basis, invoices would be generated and accordingly payments would be made to BCs/NICT. The responsibility of technology service provider M/s C-Edge Technologies Ltd. will be as follows: All transactions must be real-time basis in CBS and in KIOSK.(including MICRO ATM and AEPS) Technological problems in KIOSK software would be solved by C-Edge. NICT will be responsible for other technological issues and monitoring to BCAs The roles, functions in the KIOSK system for our bank would be as follows:

ADMIN TYPE ROLE FUNCTION REMARK

BANK ADMIN He will be Master Admin

can create Branch Admin and Corporate BC Code

at HO

BRANCH ADMIN He will be Admin to Branch Officer (BO)

can create Branch officer (BO) for branches

Currently done at HO

BUSSINESS CORRESPONDENT (NICT)

He will be Admin to KIOSK Operator (KO) or Sub-KO

can create KIOSK Operator (KO) or SUB-KO

The KO functions like account opening would be authorized by BO

Bank Officer (BO) He will be authorization authority at branch level for KOs/Sub-KOs

Would authorize account opening and other works done by KOs/Sub-KOs.

-

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3. Appointment of Business facilitators/Business Correspondents:

3.1 Eligible entities:

Business Facilitators Business Correspondents (for both models) Individuals:

Insurance agents Retires bank employees Individual rural volunteers Village Level Entrepreneurs (VLEs) Bank may consider to engage on

contract basis, properly identified and trained youth/individuals

Individuals should have familiarity with the local culture and language to work as facilitators.

Individuals: Retired bank employees Ex-servicemen Retired Govt. Employees Retired teachers Individual Kirana/medical/fair price

shop owners Individual Public Call Office (PCO)

operators Agents of small saving schemes of

Govt. Of India/Insurance companies Individuals who own petrol pumps Authorized functionaries of well run

Self Help Groups Individuals who manage Agri

clinics/Agri business centres. Village Computer Entrepreneurs

(VCEs)/Village Level Entrepreneurs (VLEs)

Bank may consider to engage on contract basis, properly identified and trained youth/individuals. Individuals should have familiarity with the local culture and language.

Other than individuals: NGOs Farmer’s clubs Functional co-operatives IT enabled rural outlets of corporate

entities like e-chaupals of ITC. Post offices Agri-clinics and Agribusiness centres

financed by branches Krishi Vigyan Kendras Rural multi-purpose kiosks Village knowledge centres Female Group Leaders/Members of

SHGs

Other than individuals: NGOs/MFIs set up under

societies/trust act Societies under Mutually Aided

Cooperative Societies [MACS] Section 25 companies Post offices Co-operative societies Companies registered under

Companies Act 1956 with large and widespread retail outlets-excluding Non Banking Finance Companies (NBFCs)

Female Group Leaders/Members of SHGs

3.2 Eligibility criteria: Business Facilitators Business Correspondents (for both models) Individuals: Educational qualification: Preferably – X Standard

Persons with computer literacy and basic accounting skills to be preferred.

Candidates having long/satisfactory

Individuals: Educational qualification: Preferably – X Standard

Persons with computer literacy and basic accounting skills to be preferred.

Retired category of eligible individuals

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association with the Bank. Knowledge of local area and language. Non affiliation with any

political/religious organisation Absence of any criminal record Referred by the Bank/a proven track

record Due diligence-involving interalia their

reputation, financial literacy, cash handling capability, ability to implement technology solutions etc.

to be given preference after discreet enquiry about their integrity.

Candidates having long/satisfactory association with the Bank.

Knowledge of local area and language. Non affiliation with any

political/religious organisation. Absence of any criminal record. Referred by at least two persons

known to be Bank/a proven track record.

Due diligence-involving interalia their reputation, financial literacy, cash handling capability, ability to implement technology solutions’ etc.

Other than individuals: Significant rural presence Satisfactory track record Preference for well regulated entities Due diligence involving interalia

reputation/market standing, financial soundness, management and corporate governance, cash handling ability and ability to implement technology solutions.

Code of ethics to be in sync with proposed functions.

Other than individuals: Significant rural presence Satisfactory track record Preference for well regulated entities Due diligence involving interalia

reputation/market standing, financial soundness, management and corporate governance, cash handling ability and ability to implement technology solutions.

Code of ethics to be in sync with proposed functions. (In view of the fact that engagement as a business correspondent do not involve substantial financial exposure on the entities, we are not stipulating any specific condition with respect to financial strength of the entity to be engaged as BC)

3.3 Distance of BCs/BFs from the Base branch:

Maximum distance between the place of business of a BC/BF and the base branch for operation of a BC/BF for rural, semi urban and urban areas is 30 kms. Proposals for appointment of BCs/BFs beyond a distance of 30 kms from the base branch may be referred to Branch Managers, which can further relax the criteria in respect of the maximum distance between the place of the business of BC and the base branch. Branch Managers should give their decisions at the earliest and in any case within a period of three months from the date of reference to them. In case no decision is conveyed by Branch Manager within this period, the same would be treated as ‘no objection’ for relaxation.

It is worth mentioning here that till contrary instructions/guidelines are issued by RBI/NABARD, BC working for our Bank should not work as BC for any other bank or institution.

3.4 Village population/Sub Service Area (SSA) criteria at time of Village/SSA allocation to BC/BF

There will be one village allocated to one BC with maximum population of 5000. If population of village is more than 5000, there will two BCs appointed in one village and

divide area of village and allot to that BCs.

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If population of village is less than 2000, there will be one BC for maximum two or three village with maximum population of 5000.

Maximum three villages to be allotted to one BC. If one SSA covers more than one village or one village covers more than one SSA, the bigger

structure will be considered for allocation.

4. Scope of activities:

Business Facilitators Business Correspondents (for both models)

Identification of borrowers and fitment of activities;

Collection and preliminary processing of loan applications including verification of primary information/data;

Creating awareness about savings and other products including products like PMJJBY/PMSBY/Atal Pension Yojana schemes and education and advice on managing money and debt counselling;

Processing and submission of applications to branches;

Promotion and nurturing Self Help Groups/Joint Liability Groups;

Post-sanction monitoring; Monitoring and handholding of Self

Help Groups/Joint Liability Groups/ Credit Groups/Others; and

Follow-up for recovery.

The primary activities to be undertaken by the Business Correspondents will include-

Disbursal of small value credit (Presently Sanction to lie with the Bank as per scheme of delegation)

Recovery of principal/collection of interest,

Collection of small value deposits from customers subject to max limit Rs.40,000 per day per customer.

Withdrawals by customers with a max limit of Rs 40,000 per customer per day.

Acknowledgement for collected cash by issuing receipt from KIOSK-duly signed by BC, on behalf of Bank.

Sale of micro insurance/mutual fund products/pension products/ other third party products who tie-up with bank.

For mobile based remittances prevailing RBI guidelines are to be followed.

Collection of requests from customer for account statement and issue to customers on demand.

Any other service on behalf of the Bank, duly authorized by the appropriate authority. Further, the activities carried out by the Business Facilitators will also be additionally undertaken by the Business Correspondents as under:-

o Identification of borrowers and fitment of activities;

o Collection and preliminary processing of loan applications including verification of primary information/data;

o Creating awareness about savings and other products including products like

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PMJJBY/PMSBY/Atal Pension Yojana schemes and education and advice on managing money and debt counselling;



Post-sanction monitoring; Monitoring and handholding of Self

Help Groups/Joint Liability Groups/ Credit Groups/Others; and

o Follow-up for recovery. o Educate villagers about aadhar

seeding & aadhar linking for benefits like DBT.

o To provide maximum banking facilities at customers doorstep through AEPS/ MICRO ATM/KIOSK etc. So that, main aim of financial inclusion can be fulfilled.

Note: Presently, we have not engaged individual BC .we have BCs appointed through Corporate

BC. The scope of this policy covers both as also any further developments as instructed by

RBI/NABARD/DFS/SLBC.

5. Process for engagement of BFs/BCs:

5.1 Identification and acceptance:

Introduction of BC/BF, as an extended arm of Branches is going to bring a paradigm shift in delivery

of banking services. Looking at the important role played by BCs/BFs, it is imperative that a proper

identification, acceptance and selection process is put in place. Selection process should involve

careful due diligence.

The identification and acceptance shall be based on:

a) The reputation of the entity/facilitator, socio-economic status and acceptance in the

society;

b) Capability for proper synthesization of information, documentation, maintenance of record

and accounts,

c) Capacity to provide social support and guidance to poor and marginalized sections,

d) Grass root presence in the area proposed to be served by them and experience of prior

relationship with the Bank/Insurance Company/Financial Institute.

e) Business Facilitator cannot be appointed directly , they should be appointed through

SHG/JLG groups only.

f) Business facilitators appointed should not work in any branch for more than 3 years.

A specific check on the reputation in terms of commitment, integrity and competency in the

local area where the entity would perform, shall be a key element.

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5.2 Selection:

In first model:BCs/BFs are to be engaged on a large scale to implement Financial Inclusion

Programme in letter and spirit. In view of this fact, delegation for engagement of BCs is being

devolved at the Regional Level. Regional offices are to constitute a three members committee

headed by minimum scale IV officer. Committee will interview the candidates and after carrying out

a thorough due diligence exercise and ensuring eligibility criteria, approval for engagement is to be

given by Regional Manager.

Regional Office has to advertise in local newspaper calling for applications from eligible

entities/individuals. These applications are to be sorted out by a screening committee. After

screening of the applications, due diligence is to be carried out as given in para 5.1 above

Short-listed candidates are to be interviewed by the committee.

To expedite the process of selection of BCs , we have attached Application forms to be called

from prospective BC/BF applicants with list of enclosures – Annexure-I

To facilitate the screening process a parameters for selection of Business

Correspondent/Business Facilitator (Individuals),which is enclosed. Annexure -II

After selection and approval(by Regional Manager) of BCs/BFs, we have to enter into an

agreement

Annexure – III Draft of the letter to be addressed to the selected BC/BF

Annexure – IV - An agreement and indemnity with BC/BF

Annexure – V Undertaking of fidelity and secrecy

Regions have to ensure that all the villages above 2000 and below 2000 population

allocated to our Bank are serviced by BC, before March 2016. Simultaneously, Regions have

to engage BFs in other villages as well where we are carrying out FI exercise.

Region offices have to report updated list of BCs/BFs to Head Office on quarterly basis.

In second model:

NICT will identify individual BCAs and intimate ROs.

ROs will decide to allow NICT to engage BCAs for villages/SSAs.

BCAs would be instructed to open an account at their link branch. Their KYC verification

would be made at branch level. Their transactions would be allowed through this account

opened.

Their details would be given to Head Office to generate their KIOSK OPEARTOR CODEs in

KIOSK system.

5.3 Security Deposit for first model:

i. Business Facilitators – No security deposit

ii. Individuals Business Correspondents -

Rs.25,000/- for the individuals who is 10th standard pass and Rs.50,000/- for

the Individual who does not fulfil the education criteria but can read & write

and work on PoS Machine. The discretion to relax the condition will rest

with the selection committee. The discretion should however be used as an

exception in deserving cases only.

iii. KIOSK BCAs appointed by NICT – NO security deposit.

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6. This security deposit will be kept in the form of FDR with the concerned branch to which BC is

attached.

7. Area of Operation

i. Business Correspondent (BC) will be linked to a base branch and the distance

between the place of business of the Business Correspondent and base branch will

be as per the RBI guidelines.

ii. The daily cash holding limit for BC will be Rs.10, 000/- with proper transit cash

insurance and indemnity. In case of bulk payments on particular day, where BC

require large sum of money the same can be extended up to Rs.50, 000/- with

proper Transit Cash Insurance and indemnity.

iii. In case of villages where regular daily transaction is reported for more than

Rs.25,000/- and if BC requests to extend his cash holding limit, Region office may

review transactions and may extend his/her cash limit with proper Transit Cash

Insurance and indemnity.

8. Capacity Building and Training

BCs/BFs are essential element of financial inclusion drive. Since BCs/BFs are new to banking

services and also to the technology they need to be trained on various aspects. Training needs are

further accentuated by the fact that high end technology is being used to reach out to low end

customers. It is proposed that:

1. Training should be localized to the possible extent.

2. The Bank may tie up with Indian Institute of Banking and Finance (IIBF) accredited

institutions like NABCOM/Indian School for Microfinance for Women for imparting training

to BCs.

3. Accredited institutions have to provide training as per the training module developed by

IIBF.

4. Expenses related to the training are to be paid to IIBF as per quotation provided by IIBF.

(80% of these training expenses are eligible for reimbursement from NABARD under

Financial Inclusion Fund – FIF)

5. Technology vendors to assist in providing technical training to the BCs/BFs as a part of

their agreement.

6. Need based faculty support be provided by Bank to accredited institutions for sensitization

of BCs about our products, cash management aspects, credit delivery issues and most

importantly our code of ethics.

7. Since content of the subject is not very wide, we propose that trainings should mostly be in

workshop format for 5/6 days and phase wise manner.

8. Training sessions may cover following areas:

a) What is financial Inclusion

b) Bank’s Financial Inclusion Plan

c) Concept of BC/BF, scope of activities, remuneration

d) Role of IT in Financial Inclusion

e) Smart Card based FI Solution

f) Mobile Based FI Solution

g) Cash Management under BC Model

h) Reporting and MIS

i) Credit delivery under FIP. Products like KCC/GCC

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j) Transfer payments like NREGA wages and social security payments, etc. through

BC Model

k) UIDAI based NREGA payments and leveraging our status as an UIDAI register for

greater customer acquisition

l) Cross selling to FI beneficiaries

m) PMJDY and its scopes like RuPay Cards, PMJJBY, PMSBY, APY, Swavalamban, etc.

n) Aadhar seeding and Aadhar Linking.

Topics listed above are just illustrative and can be properly blended in view of appropriateness of

evolving FI landscape.

9. Compensation package in first model :

First Model:

BCs/BFs are most crucial link in financial inclusion exercise. Challenge is to develop a

credible BC model so that low end activities of the branches are assigned to BCs/BFs and

our scarce manpower resources are utilized for higher end activities.

Experience gathered so far, indicate that BCs and BFs need to be incentivized in such a way

that only active BCs are engaged by our Bank and are retained as well as they get good

remuneration for their work. The combination of initial fixed remuneration with an added

incentive would ensure reasonably good package for BCs who work diligently and perform

the job. This would allay the apprehension that any assured promise of monthly payment on

permanent basis may bring to complaceny in BCs, while in some extreme cases invoke

employment liabilities on the Bank.

The Bank to carefully examine attrition level of BCs.

Targets under Financial Inclusion plan and overall emphasis being placed on the FI exercise

necessitates the engagement of BCs on a substantial scale.

Protected incentive will be linked with minimum performance criteria i.e. minimum number of

accounts, minimum number of transactions and other business targets.

Incentive structure to be revised periodically in view of the evolving marketplace and increase in

the delegated authority.

Proposed incentive/commission structure is in line with recent guidelines of RBI which interalia

states:

“The banks may pay reasonable commission/fee to the BC, the rate and quantum of which may be

reviewed periodically. The agreement with the BC should specifically prohibit them from charging

any fee to the customers directly for services rendered by them on behalf of the bank. Commission

structure or incentive mechanism should be devised in a manner that mere increase in the number

of clients served or the transaction volume does not drive the commission. The remuneration

should combine fixed and variable parts dependent, inter-alia, on some indication or measure of

customer satisfaction. Some part of the variable remuneration could be deferred or clawed back in

case of deficiency of service”

The Bank has decided to have fixed remuneration, Travelling/stay reimbursement, Commission and

incentives as per the Annexure-A which would be changed with approval of the Chairman from time to time

to suit the market conditions and directions from RBI/NABARD.BC compensation to be as per Annexure A .

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10. Risk Management:

Various operational risks are associated with outsourcing of business through BC Model viz. fraud

by BCs, technology failures, cash loss, inadequate documentation reputational risk, various risks

associated with wrong use of Bank’s stationary, logo etc.

In addition to operational risk, bank is exposed to credit risk also, to the extent of Cash dispensed to

business correspondent for undertaking transactions.

The following measures are proposed for risk mitigation:

(i) Seamless integration of Data with our CBS;

(ii) Biometric authentication of transactions and integration with ‘Aadhaar’ linked

authentication process;

(iii) Surprise checks of books of records of BCs by Branch/Region/ Head office authorities;

(iv) Sample transaction audit for the transactions carried out by BCs during regular audit of

the branch;

(v) Portfolio audit [Portfolio of business developed by BC, includes loan proposal, deposits,

SB account, micro insurance, recovery etc]

(vi) Robust MIS at Branch/Regional and Head Office level to keep a tab on the activities of

BCs;

(vii) Standardization of documents and contracts;

(viii) Simplification of credit applications and documents;

(ix) Constant watch (through MIS) on the delinquency pattern of credit business mobilized

through BCs/BFs;

(x) Introduction and enforcement of exit clause for BCs;

(xi) Insurance for physical security of cash with BCs;

(xii) Fidelity insurance for BCs

(xiii) Pin pad based transactions on MICRO ATM.

And lastly to mitigate the credit risk for the cash given to BCs, we propose:

(i) System of taking security deposit. We propose a security deposit of minimum

Rs.25,000/- from the business correspondent in first model. However, Regional

Manager to have discretion to review the same.

(ii) We may part with additional amount of cash to BCs provided additional collateral in

form of security deposit is obtained from BCs.

There may be escalated Cash demands for NREGA payments or social security payments

of crop loan disbursement seasons, which may be catered to by enhancing the cash

holding limits of BCs for short duration. We propose such requests to be put up to

Regional Managers and cash holding limits can be enhanced based on need.

(iii) Bank may sanction OD facility against FD in future to all KIOSK BCs if needed.

11. Compliance / Adherence to KYC norms:

Compliance with KYC norms will continue to be the responsibility of concerned bank officials. The

objective is to extend savings (Basic Saving Bank Deposit Accounts – BSBDAs/No Frills account)

and loan facilities to the underprivileged and strict adhere to the guidelines issued on KYC from

time to time and KYC-AML policy of the Bank.

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12. Customer’s choice:

The customers shall have the freedom to use Branch Banking Facilities even though the BCs/BFs are available

in their locality. This is considered necessary as absence of such choice to deal directly with the Bank may

lead to over dependence of clients on intermediaries for availing of banking services and complacency on the

part of the Bank/Branch employees for business development.

13. Internal Control and Monitoring

1. The Regional Office is responsible for control, supervision and monitoring of individual BCs/BFs. The

Branch Manager to oversee day to day monitoring of BC/BF’s activities. This will be based on the

periodic feedback collected from the field about their conduct and form reports downloaded from the

FI server with respect to transactions done by the individual BC/BF.

2. No transaction should be left unreconciled more than one month, the unreconciled entries of

BCs/BFs (would be monitored by ROs) district-wise. The position of such entries and review of

BC/BF to be recorded.

3. The Branch will maintain the Register to record the details of all BC/BFs (individuals) attached to the

branch as base branch as also the transaction put through by them.

4. Periodic meetings of BFs/BCs would be called at the base branch at least once in two week and at the

Regional Office quarterly to discuss various products, difficulties faced, feedback of customers etc.

5. Regions would submit quarterly updated report of BC/BF engagement and list of BCs/BFs, along

with report of quarterly meeting and quarterly performance review of BCs/BFs.

6. Customer’s grievances with regard to functioning of BCs/BFs, BC/BF remuneration related disputes

(with in policy guidelines) shall be addressed by Regional Managers.

14. Transaction Limit for KIOSK point

KIOSK BC would be able to do the transactions within the limits mentioned below. 1. Transaction limit per customer through KIOSK/AEPS/MICRO ATM will be Rs.40000 per day, in

minor account it will be Rs.5000/- 2. Maximum amount limit per transaction will be Rs.10000 in any transaction type like Deposit,

Withdrawal, Transfer as well as minimum amount will be Rs.50, in case of minor account it will be Rs.1000 and Rs.50 respectively.

Powers are delegated to the chairman to increase/decrease above limit as per requirement. 15.All this guidelines are subject to get revised immediately on the basis of new guidelines issued by RBI. Chairman has power to incorporate new guidelines in this policy. Board will be informed about the same in next review.

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Encl:-

1. Annexure–I: APPLICATION FORM FOR OFFLINE BUSINESS CORRESPONDENTBUSIENS/ FACILITATOR 2. Annexure-II: PARAMETERS FOR SELECTION OF BUSINESS CORRESPONDENTBUSINES/ FACILITATOR 3. Annexure–III: Draft of the letter to be addressed to the selected BCBF 4. Annexure–IV: An agreement and indemnity with BC-BF 5. Annexure–V: Undertaking of fidelity and secrecy 6. Annexure-A: Remuneration structure for BC

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Annexure –I APPLICATION FORM FOR OFFLINE BUSINESS CORRESPONDENT/BUSIENSS FACILITATOR

1. Location (Village / Town) - -Location SSA Name- -Villages covered under SSA-

- District - State - PIN -Name of base branch-

2. Name (IN BLOCK LETTERS) 3. Father’s / Husband’s Name 4. Date of Birth and age -

5. Gender (Please Tick) - Male ……. Female …………

6. Education (Please Tick) - Class X………. Class XII........

Graduate ……… Other.........

7. Permanent Address - P.O. Tehsil

- District

- State Pin :

8. Communication Address

- P.O. Tehsil - District - State Pin :

9. Telephone No. (with STD Code) - Residence - Mobile

10. Currently Banking with (Bank) – 11. Bank Account Number, if any – 12. Cheque Facility (Please Tick) - Available………. Not Available……… 13. Proof of Name (Please Tick) - Driving License………. PAN Card………….

(Anyone) (Enclose with application) Voter’s ID card……….. Passport……………. 14. (a) Proof of address (Please Tick) – (Anyone) (enclose with application)

- Electricity Bill (Latest)……. NSC (Copy)……… Telephone Bill (Latest)………. LIC Policy (Copy)…………

Letter from landlord………Gas Connection………….. 14. (B) PAN NO. 14. (C) Aadhaar No……………………………….

15. Present Business /

Occupation, if any ______________________________________________________________

16. Computer Literacy: Yes ……. No……….

17. If yes, nature of qualification : ________________________________________________

18. If you already own a business or are working your revenue / income per month including pension if any is:

Less than Rs.5000 Rs.5000 - Rs.10000 Rs.10000 - Rs.20000 Rs.20000 - Rs.30000 More than Rs.30000

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19. Do you have any experience in selling financial products? If yes, give details. _________________________________________________________________________________________ _________________________________________________________________________________________ ________________________________________________________________________________

20. Languages known ( fluent / not so fluent)

21. No. of years of stay in the town / village …………………. 22. Do you have any police records? If yes, give

details………………………………….................................................................................................... .....................................................................................................................................................

23. Names, address and occupation: of two people to whom reference can be made.

……………………………………………………………………………………………… ……………………………………………………………………………………………… ………………………………………………………………………………………………

24. Political Affiliation, if any: …………………. 25. Default if any to Banks / Financial Institutions: 26. Infrastructure available: (Office, area, location, computer, Internet, Tel No. etc:) 27. Name of the office from which retired.-..................................................................... 28.Position at the time of retirement.(Pl give brief of various positions held and role) 29. Any disciplinary action taken against you while in service

(if Yes, please give details. Please enclose a certificate of Conduct from your last the employer)

30. Particulars of liabilities. 31. Particulars of movable property and Investments. 32. Particulars of Immovable property A) Land: Village Survey/Patta No Area B) House/

Flat Location Built up area Year of construction ( Property extracts should be attached)

33. Are you willing to invest in the POS machine and other equipment required for carrying out transactions as Business correspondents.

34. What is the cash balance you are ready to invest for making cash payments/receipt of deposits as Business Correspondent.

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I certify that the above information is true to the best of my knowledge and belief.

Date

Place…………………………………. Date…………………….. Signature of the

applicant………………………..

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Annexure –II

PARAMETERS FOR SELECTION OF BUSINESS CORRESPONDENT/BUSINESS FACILITATOR (INDIVIDUAL)

Name of the Applicant:…………………………

Category of Applicant:……………………………

Qualitative Assessment Parameters

- Educational Qualification - Knowledge and training in financial products

- Insight into local trends - Possesses computer knowledge - Possessing financial ability to invest in POS devices and other equipment.

- Ability to raise stipulated security deposit of Rs. 25,000/- to Rs.50,000/- - Ability to retain required cash balance at POS & the balance in current account.

- Experience as an outbound sales person - Fluency in local language - Experience in handling cash & keeping of accounts

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Annexure –III

(Draft of the letter to be addressed to the selected BC/BF) To, Mr/Ms. __________________________________ ___________________________________________ ___________________________________________ ___________________________________________

Date: Dear Sir,

EXTENSION OF BANKING SERVICES BUSINESS CORRESPONDENTS/BUSIENESS FACILITATORS With reference to your application dated ___________________________, we have pleasure in informing you that have been engaged for extension of our bank’s services in the area ___________________________ as Business Correspondent/ Business Facilitator. Please arrange to complete the formalities by executing the enclosed agreement in this regard. Please note that your engagement will be for a period of 12 months, which may be terminated by either party by giving One month’s notice. It can also be terminated by the Bank at any time if your performance is found contrary to the Bank’s instructions or if you are found to perform any action detrimental to Bank’s interest. Extension of your engagement with the Bank will depend on your performance in the activity/services allotted to you and necessity of your services to the Bank.

- You have to perform jobs assigned to you as per schedule listed in agreement. In performance of these functions, you have to follow Bank’s instructions issued from time to time.

- For your services, remuneration will be paid as indicated in the schedule. You are strictly prohibited from charging any fee from the customers directly for services rendered to customers/ or on Bank’s behalf unless specifically authorized by the Bank.

- You should clear all the queries/doubts of the customers so that the customers are satisfied with you services. A code of conduct and responsibility is given in enclosure -1 for your/your agents will have no right to claim any employment whatsoever from the Bank.

- Your engagement with Bank is as service provider only and it does not create any employer-employee relationship. You or your agents will have no right to claim any employment whatsoever from the Bank.

- In token of your having accepted the offer on the terms and conditions stipulated, please return the duplicate copy of this letter duly acknowledged. Kindly arrange to complete other formalities including execution of the agreement within 15 days of receipt of the letter.

Yours faithfully,

REGIONAL MANAGER

Encl: Enclosure-1

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RESPONSIBILITY OF BUSINESS CORRESPONDENTS (BCs)/BUSINESS FACILITATORS (BFs)

5. BCs/BFs should have a good reputation and have systems in place

to check lack of integrity and honesty leading to misuse of funds/defamations/frauds,

to address customer complaints and grievances, ensure customer confidentiality and Observe KYC norms.

6. BFs/BCs should handle with care their responsibilities particularly aspects like soliciting

customers, hours of calling, privacy of customers information and conveying correct information about products on offer, etc.

7. During recovery procedures, BCs/BFs will adhere to extant instructions as specified in

Bank’s fair practice code for lending. BCs/BFs will refrain from action that could damage

the integrity and reputation of the Bank.

8. BCs/BFs should not resort to intimidation or harassment of any kind, either verbal or physical, against any person in their recovery efforts.

9. BCs/BFs will not handle, on behalf of the Bank, any transaction for which they are not

authorized as per agreement.

CODE OF CONDUCT FOR BUSINESS CORRESPONDENTS (BCs)/BUSINESS FACILITATORS (BFs)

Every Business Correspondent (BCs)/Business Facilitator (BFs) shall –

1) Identify himself/herself as an agent of the Bank duly engaged for this purpose by the BC. 2) Produce the Identity Card issued to him by the Bank to the prospective customer (prospect) on

demand.

3) Disseminate requisite information in respect of products offered by the Bank through him and take into account, the needs of the prospect while recommending the specific product.

4) Inform promptly the prospect in respect of acceptance or rejection of the business by the Bank.

5) Render necessary assistance to the prospect in complying with requirements for transacting

business with the Bank. 6) Not enter the prospect’s residence/office against his/her wishes. 7) Respect the prospect’s privacy.

8) If the prospect is not present and only family members/office persons are present at the time of

the visit, end the visit with a request till the prospect to call back.

9) Provide his/her telephone number or the concerned Bank office’s contact details, if asked for by the customer.

10) Limit discussions with the prospect to the business on hand-Maintain a professional distance. 11) Any communication sent to the prospect should be only in the mode and format approved by the

Bank.

12) Normally discuss the prospect’s interest only with the prospect or any other individual/family’s accountant/Secretary/spouse authorized by the prospect.

13) Be properly dressed. He shall not –

1) Solicit or procure any business without holding valid authority for this purpose.

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2) Induce the prospect to omit any material information. 3) Induce the prospect to submit any wrong information or documents. 4) Behave in a discourteous manner with the prospect.

5) Offer different rates, advantages, terms and conditions other than those offered by the Bank.

6) Force an account holder to terminate the existing account and effect a new account unless

otherwise approved by the Bank. 7) Mislead the prospect on any service/product offered.

8) Mislead the prospect about their business or organization’s name, or falsely represent

themselves. 9) Make any false/unauthorized commitment on behalf of the Bank for any facility/service.

10) Accept gifts or bribes of any kind from the prospects. If offered a bribe or payment of any kind,

he/she must report the offer to his/her management. 11) Exceed the cash ceilings prescribed by the Bank for various transactions. 12) Share any customer information, in any form whatsoever, with any other person/entity.

13) Violate this code. Any BC/BF violating this code may be blacklisted by the Bank. Failure to

comply with these requirements may result in termination of the agreement with the Business Facilitator/Business Correspondent.

14) Have any personal relations with the customers. 15) Divulge unauthorized information, written or spoken, to any customer or any other person. 16) Shall not use banks property like MICRO ATM for malfied, wrong purpose.

He shall not, when effecting loan recoveries,

1) Use obscene, profane or abusive language and /or hold out any threats.

2) Use violent or any criminal means which may harm the reputation or property of the

borrower, guarantor or any other person. 3) Act in any manner which will affect the reputation of the Bank.

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Annexure – IV (An Agreement and indemnity bond with BC/BF)

(TO BE STAMPED AS AN AGREEMENT AND INDEMINITY AS PER THE

APPLICABLE STATE STAMP ACT)

This agreement made on ___________________________________date of ________________________

BETWEEN

Saurashtra Gramin Bank, constituted under the Regional Rural Bank Act, 1976 having its Central Office at 1st Floor, S.J.Palace, Gopalnagar, Dhbar Road, Rajkot (Gujarat) and having one of its Regional Office at __________________________________ __________________________________________________ and a Bank Branch at ______________ ___________________________________ herein after referred to as “The Bank” which expression shall unless repugnant to the context or meaning thereof shall include its successors and permitted assigns of the First Part

AND

Mr.______________________________________________ resident of _______________ villages and principal place of business at ___________________ here in after referred to as “Business Correspondent (BC)/Business Facilitator (BF)” which expression shall unless repugnant to the context or meaning thereof shall include its successor and permitted assigns of the Second Part.

WHEREAS

The Bank is desirous of availing services to facilitate its business growth and the BC/BF has offered to provide services as may be required by the Bank.

NOW THEREFOR

This agreement witnesses as under.

1. Scope of Services:

The BC/BF agrees to provide the services as detailed hereunder, as per instruction and as may be required by the Bank from time to time.

1.1 Nature of Services:







Post-sanction monitoring;

The primary activities to be undertaken by the

Business Correspondents will include-





Acknowledgement for collected cash by issuing receipt from KIOSK-duly signed by

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Monitoring and handholding of Self Help Groups/Joint Liability Groups/ Credit Groups/Others; and


BC, on behalf of Bank. Sale of micro insurance/mutual fund

products/pension products/ other third party products who tie-up with bank.



Any other service on behalf of the Bank, duly authorized by the appropriate authority.

Further, the activities carried out by the

Business Facilitators will also be

additionally undertaken by the Business

Correspondents as under:-



o Creating awareness about savings and other products including products like PMJJBY/PMSBY/Atal Pension Yojana schemes and education and advice on managing money and debt counselling;



Post-sanction monitoring; Monitoring and handholding of Self Help

Groups/Joint Liability Groups/ Credit Groups/Others; and

o Follow-up for recovery. o Educate villagers about aadhar seeding &

aadhar linking for benefits like DBT. o To provide maximum banking facilities at

customers doorstep through AEPS/ MICRO ATM/KIOSK etc. So that, main aim of financial inclusion can be fulfilled.

1.2 For any other service on behalf of the Bank, duly authorized by the appropriate authority of the Bank. BC/BF shall ensure that,

He takes care of his responsibility particularly aspects like soliciting customers, hours of calling, privacy of customer information and informing the correct terms and conditions of the products offered etc.

Adhere to extant instructions on Fair Practices Code for lending as also their own code for collection of dues or in the absence of such a code at the minimum adopt the IBA’s code for collection of dues and repossession of security. It is essential that they refrain from action that could damages the integrity and reputation of the Bank.

Shall not resort to intimidation or harassment of any kind either verbal or physical against any person on their debt collection efforts, including acts intended to humiliate publicly or intrude the privacy of the borrowers’ family

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members, referees and friends, making threatening and anonymous calls or making false and misleading representations.

19. BC/BF shall adhere to the performance standards in respect of services and products as detailed in Schedule ‘A’ hereunder written, which forms part and parcel of this agreement. The Bank reserves the right to change/vary/the contents of schedule ‘A’ by advising the same to BC/BF in writing and upon such advise, the amended Schedule ‘A’ shall become effective. 2. Maintenance of Reports by BC/BF AND Monitoring/Inspection by the Bank. 2.1 BC/BF specifically agrees to maintain all records accounts including registers/ documents etc. as per instruction of the Bank from time to time and ensure safe and proper custody of all records, accounts including documents etc. 2.2 BC/BF specifically agrees that the Bank shall be entitled to inspect and audit the records maintained by BC/BF as may be decided by the Bank at its sole discretion and BF at its sole discretion and BC/BF hereby undertakes to promptly produce all records and information required for this purpose/for the purpose of inspection and audit. BC/BF shall provide access, to the officers/employees/auditors of the Bank to the premises/places where such records are kept/ maintained. The Bank shall have a right to obtain copies of any audit report, review reports and findings made on the BC/BF in connection with the service performed by BC/BF for the Bank. 2.3 Further, BC/BF specifically agrees that it shall access to Reserve Bank of India (RBI) or persons authorized by RBI or its employees/ officers or other persons to inspect and access the documents, accounts, records of transactions and all necessary information in possession of, or stored or processed by the BC/BF within a reasonable time. The persons authorized by RBI shall have right to obtain copies of the records, information etc. in possession of BC/BF. BC/BF further agrees that in case access is not allowed to the persons authorized by RBI for the purposes of inspection which results in imposition of supervisory fees by RBI upon the Bank is required to pay such supervisory fees to RBI, BC/BF shall be liable to reimburse to the Bank such fees including any penalty, interest levied and recovered by RBI. 28. BC/BF shall bear all expenses/costs and charges in connection the inspection and audit either conducted by the Bank or by RBI. 29. BC/BF specifically agrees that the Bank has full right to monitor and assess the performance of services by BC/BF and wherever the Bank discover any deficiency or non-performance of the services up to the mark, the Bank shall instruct the BC/BF in writing and BC/BF agrees to rectify the deficiencies or to ensure compliance of the instruction of the Bank. 3. Confidentiality:

35. BC/BF is aware that all information disclosed to the BC/BF by the Bank and all records, accounts, documents maintained by BC/BF are confidential in nature and having regard to the sensitive nature of the information and records, specifically agrees to maintain secrecy and confidentially of all the information and records, accounts in respect of the outsourced services in the same manner & degree of care as BC/BF would ensure for its own confidential and sensitive information. BC/BF shall ensure that appropriate and suitable undertaking/agreements are obtained and maintained as the case may be ensure compliance with confidentiality obligations of BC/BF. 36. BC/BF agrees to indemnify and hereby keeps the Bank indemnified against all actions, claims, loss, damages, costs, charges, expenses (including Attorney/Advocate fees and legal expenses) which the Bank may suffer or incur on account of breach of confidentiality obligations as per clause 3.1 above by BC/BF. BC/BF further agrees to make good the loss suffered by the

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Bank upon first demand by the Bank which shall be final, conclusive and binding on BC/BF. 37. BC/BF specifically agrees that the confidentiality obligations of the BC/BF in terms of this agreement shall survive termination of this agreement. 4. Relationship between the Parties 4.1 It is specifically agreed that the BC/BF shall act as independent service provider and shall not be deemed to be the Agent of the Bank except in respect of the transactions/services which give rise to Principal Agent relationship by implication. 4.2 BC/BF shall hold out or represent as agents of the Bank. BC/BF shall not be entitled to claim permanent absorption or any other claim or benefit against the Bank. 5. Compliance with Laws by BC/BF 5.1 BC/BF hereby agrees and declares that it shall be the sole responsibility of BC/BF to comply with the provisions of all the applicable laws, concerning or in relation to rendering of services by BC/BF as envisaged under this agreement. 5.2 BC/BF shall procedure and maintains all necessary licenses permissions, approvals from the relevant authorities under the applicable laws throughout the currency of this agreement. 5.3 Bank shall have no liable & responsible for compliance of applicable Labour Laws in respect of BC/BF and in particular laws relating to terminal benefits such as Pension, Gratuity, Provident Fund, Bonus or other benefits to which BC/BF may be entitled. 5.4. BC/BF hereby represents and warrants that it has full authority to enter into this Agreement and render the services as envisaged under this agreement and all Corporate or other necessary approvals have been obtained for entering into this Agreement with Bank. Further, the persons executing this agreement have full authority and power to execute this agreement and bind BC/BF. 6. Fees, Taxes Duties and Payments: 6.1 BC/BF shall be paid fees and commission in the manner detailed in Schedule ‘B’ hereunder written subject to deduction of income tax thereon wherever required under the provisions of the Income Tax Act by the Bank. 6.2 All other taxes including service tax, duties and other charges which may levied shall be borne by the BC/BF and the Bank shall not be liable for the same. 6.3 All expresses, stamp duty and other charges expenses in connection with execution of this agreement shall be borne by BC/BF. 7. General Indemnity: BC/BF agrees and hereby keeps the Bank indemnifies against all claims, actions, loss, damages, costs, expenses, charges, including legal expenses (Attorney, Advocates fees included) which the Bank may suffer or incur on account of any deficiency in services rendered by BC/BF. BC/BF agrees to make good the loss suffered by the Bank on first demand made by the Bank in this regard which shall be final conclusive and binding on BC/BF. 8. Term & Termination 8.1 The agreement shall be valid for a period of one year from the date of its execution and may

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be renewed for such further periods as may be mutually agreed between the parties. 8.2 The Bank as well as BC/BF shall have right to terminate the agreement by giving a month’s notice in writing to the other party. In the event of termination of the agreement by BC/BF, all records, information including documents etc. shall be returned by BC/BF to the Bank as per instructions of the Bank. 8.3 The Bank shall have a right to terminate the agreement immediately by giving a notice in writing to BC/BF in the following eventualities:

i. If any Receiver/Liquidator is appointed in connection with the business of the BC/BF or BC/BF transfer substantial assets in favour of its creditors or any orders/directions are issued by any Authority/Regulator which has the effect of suspension of the business of BC/BF.

ii. If BC/BF applies to the Court or passes a resolution for voluntary winding up of BC/BF or any other creditor/person files a petition for winding up or dissolution of BC/BF.

iii. If BC/BF in the reasonably opinion of the Bank is unable to pay its debts or discharges its liabilities in normal course of business.

iv. If BC/BF is unable to render the services up to the mark as envisaged under this agreement upon a reasonable assessment of the circumstances by the Bank which affect rendering of the services by BC/BF as envisaged under this agreement.

v. If any acts of commission or omission on the part of BC/BF or its agents, employees, sub-contractors or representatives, in the reasonable opinion of the Bank tantamount to fraud or prejudicial to the interest of the Bank or its customers.

vi. If BC/BF is owned/controlled wholly/partly by any other bank operating in India. vii. If BC/BF or their relatives as defined in section 6 of the Companies Act, 1956 becomes a

officer or employee of the Bank.

8.4 In the event of the termination of the agreement by the Bank pursuant to clause 8.3 hereinabove, BC/BF shall be liable and responsible to return all records and information in its possession as envisaged under clause 8.2 above.

9. Governing Laws & Jurisdiction: 9.1 The agreement shall be governed and constructed in accordance with the Laws of Republic of India. 9.2 The parties agree to submit to the jurisdiction of the appropriate court in India in connection with any dispute between the parties under the agreement. 10. Notices: Any notice, invoice, approval, advice, report or any other communication required t be given under this Agreement shall be in writing and may be given by delivering the same by hand or sending the same by prepaid registered mail, telegram or facsimile to be relevant address sent forth below or such other address as each Party may notify in writing to the other Party from time to time. Any such notice given as aforesaid shall be deemed to be served or received at the time upon delivery (if delivered by hand) or upon actual receipt (if given by telegram or facsimile) or fifteen (15) clear days after posting (if the addressee is outside the country of posting).

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11. Miscellaneous: 11.1 Any provision of this Agreement may be amended or waived, if, and only I such amendment or waiver is in writing and signed, in the case of an amendment by each party, or in this case of a waiver, by the party against whom the waiver is to be effective. 11.2 No failure or delay by party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise of any other right, power of privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. 11.3 Unless otherwise provided herein, all notices or other communication under or in connection with Agreement shall be given in writing and may be sent by personal delivery or post or counter or facsimile. Any such notice or other communication will be deemed to be effective if sent by personal delivery, when delivered, if sent by post, two days after being deposited in the post and if sent by courier, one day after being deposited with the courier, and if sent by facsimile, when sent (on receipt of a confirmation to the correct facsimile numbers). 11.4 This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and super cedes all prior written agreements, undertakings, understandings and negotiations, both written and oral, between the Parties with respect to the subject matter of the Agreement. No representation, inducement, promise, understanding, condition or warranty not set forth herein has been made or relied upon by any party hereto. 11.5 Neither this agreement nor any provision hereof intended to confer upon any persons/other than the Parties to this Agreement any rights or remedies hereunder. 11.6 The BC/BF shall execute and deliver such additional documents and perform such additional actions, as may be necessary, appropriate or reasonably requested to carry out or evidence the transactions contemplated hereby. 11.7 The invalidity or unenforceability of any provisions of this Agreement in any jurisdiction shall not affect the validity, legality or enforceability of this Agreement, including any such provision, in any other jurisdiction, it being intended that all rights and obligations of the Parties hereunder shall be enforceable to the fullest extent permitted by law. 11.8 In case of any change in applicable laws in India that has an effect on the terms of this Agreement, the parties agree that the Agreement may be reviewed, and if deemed necessary by the Parties, renegotiated in good faith. 11.9 The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation thereof. 11.10 If this Agreement is signed in counterparts, each counterpart shall be deemed to be an original. 11.11 The service Provider shall not assign or transfer all or any of its rights, benefits or obligations under this Agreement without the approval of Surashtra Gramin Bank.

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Saurashtra Gramin Bank may, at any time, assign or transfer all or any its rights, benefits and obligations under this Agreement. 11.12 The BC/BF agrees that they shall not use the logo, trademark, copy rights of other proprietary rights of the opposite party in any advertisement or publicity materials or any other written communication with any other party, without the prior written consent of the Bank. 11.13 This Agreement shall not be construed as joint venture. Each party shall be responsible for all its obligations towards its respective employees. No employee of any of the two parties shall claim to be employee of other party. Annexure A – Details of fees payable to BC/BF

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement the ___________ day and ____________ month of year ___________ first hereinabove written.

Shri. ______________________________ For SAURASHTRA GRAMIN BANK

(Business Correspondent/ (Bank)

Business Correspondent)

SCHEDULE ‘A’

Details of specific services & products to be rendered by BC/BF










The primary activities to be undertaken by the

Business Correspondents will include-





Acknowledgement for collected cash by issuing receipt from KIOSK-duly signed by BC, on behalf of Bank.

Sale of micro insurance/mutual fund products/pension products/ other third party products who tie-up with bank.



Any other service on behalf of the Bank, duly authorized by the appropriate authority. Further, the activities carried out by the

Business Facilitators will also be

additionally undertaken by the Business

Correspondents as under:-



o Creating awareness about savings and other products including products like PMJJBY/PMSBY/Atal Pension Yojana schemes and education and advice on managing money and debt counselling;





o Follow-up for recovery. o Educate villagers about aadhar seeding &

28

aadhar linking for benefits like DBT. o To provide maximum banking facilities at

customers doorstep through AEPS/ MICRO ATM/KIOSK etc. So that, main aim of financial inclusion can be fulfilled.

Shri. ______________________________ For SAURASHTRA GRAMIN BANK

(Business Correspondent/ (Bank) Business Correspondent)

29

Annexure – V (Draft for Undertaking of fidelity and secrecy)

- I (giving name and detailed description of Business Facilitator/Business

Correspondent) hereby undertake that during the tenure of my engagement with

the Bank as *Business Correspondent/*Business Facilitator shall render the services

with utmost seniority integrity, and as per the benchmark of service standards in the

Industry. I hereby further undertake to obtain and maintain suitable undertaking(s)

of fidelity and secrecy from me, if any, I may be engaged in rendering of the services

as per terms and conditions subject to which I have been engaged as Business

Correspondent/Business Facilitator.

- I hereby undertake to maintain absolute confidentiality in respect of all information

and records which may come to our knowledge or custody while rendering services

as Business Correspondent. I shall maintain confidentiality of the information and

for our records which come to our knowledge/custody even after termination of our

engagement of Business Correspondent/Business Facilitator as I am aware that the

information and/or records are of immense value to the Bank, the disclosure of

which to third parties/outsiders can result in server implications to the Bank.

For and on behalf of

(Full Name & description of Business Correspondent/Business Facilitator) Place : …………………………………… Date

(BCs/BFs Signatory) (*Delete which is not applicable)

30

Annexure-A

KIOSK BCA - remunaration, incentive and commission for Online and Offline work

Sr

No.

Particular of work Remunration Rate - Revised

1 fixed monthly remuneration 1.Fix Pay of Rs.1500 for atleast ten online transaction or account

opening.

2.Rs.3000 for more than 25 online transaction or account.

3.Rs.4000 for more than 50 online transaction or account.

4.Rs.5000 for more than 100 online transction or account .(A/c

should have Min. balance of Rs.100/-)

2 visit of Branch to SSA/villages Rs.3/- per KM.

3 visit of village/SSA to Branch Rs.3/- per KM

4 RD A/C open Rs.10/- per new account. For RD a/c not eligible to be opened under

Product code 28111161.

5 Account opened SB/No

frill/BSBD/BSBD-Small/Joint/Minor

Rs.20/- per new account

6 Cash deposit Per transaction Rs.10/- To be paid only if transaction amount

exceeds maximum KIOSK transaction limit ( i.e. above Rs.40000 as

per current limit) 7 Cash withdrawal

8 Term Deposits (Min.Rs.10000/-)

(Tenure Min.181 days) 0.20% of deposit amount OR Maximum.500/- (amount of such

commission will be calculated on total amount deposited by any

holder/s in a business day, irrespective of numbers of A/cs / type of

A/cs of same holder/s).

9 NPA recovery ( Without Compromise cases)

Substandard/Doubtful/Loss & Written Off

1% / 2%/ 10% respective of Amount covered

10 NPA recovery ( With Compromise cases)

Substandard/Doubtful/Loss & Written Off

0.5% /1%/ 5% respective of Amount covered

11 SIIG (Self Help Groups)

For Formation and promotion including credit linkage (After Credit: Linkage)

Rs.1000/-

12 JLG (Joint Liability Group)

Formation & Credit Linkage Rs.300/-

After Completion of 1 year (Continuous Standard Asset)

Rs.500/-

After Completion of 2 Year (Continuous Standard Asset)

Rs.200/-

13 PMJJBY policies Rs.30/- per policy

14 PMSBY policies Rs.1/- per policy

15 APY enrollment Rs.30 per fresh enrollment (APY should not be closed before 1 year

of enrollment , Branch to ensure the same. If it happens than amount

paid can be recovered)

16 To reduce zero balance PMJDY accounts (Accounts given by the branch)

Discontinued

17 Felicitation fees for Group scheme like

PAI and Health Insurance

2% of premium received for E.g. Rs.200 if Premium received is

Rs.10000/-

18 In case of General third party products /Ancillary support services the slabs of facilitation fees are Rs.10 ( Pan card )Rs 20, Rs 40, Rs 60, Rs 80 and Rs 100.

19 Aadhaar linkage//Seeding Rs.3 per account (first time adhaar linkage/Seeding only )

20 Enrollment of new KCC account Rs.100/-per account (Rs.2000/- incentive if more than 20 a/c of new

farmers are enrolled during concerned month)

31

POINT NO.1,2.3 PAYMENTS GIVEN TO ONI.Y KIOSK BCAs AND NO SHARE WILL BE GIVEN T0 NICT. IN

OTHER CASE, NICT AND KIOSK BCAs ARE GIVEN 25:75 RESPECTIVELY

KIOSK BCA - Online work Sr

No.

Particular of work Work data/Remarks

1 Account opening Rs.20/- per new account (Min. balance of Rs.100/-)

2 Deposit through KIOSK,MICRO

ATM,AEPS 0.40% per transacted amount (minimum Rs.1 and maximum Rs.10)

3 Withdrawal through KIOSK,MICRO ATM,AEPS

4 Deposit -KIOSK to KIOSK through KIOSK,MICRO ATM,AEPS

5 Deposit -KIOSK to CBS through

KIOSK,MICRO ATM,AEPS

6 RD account opening Rs.10/- per account (Min. balance of Rs.100/-)

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