CAR POLICY

To provide greater flexibility to the employee, the Bank has monetized the grade specific car entitlement provided for personal and business use. However, the functional title/position related car facility provided for business use will remain unchanged. The car monetization policy provides a fixed monthly conveyance allowance, and an optional car finance facility. The car finance facility could be used to buy back the existing bank provided grade specific! car or any other car for personal and business use.

Salient Features:

"ustomer will be able to purchase a car of their choice. #n case a customer avails the "ar $inance facility, the loan tenure will be fixed for max seven years. #n case a customer wishes to replace/change the vehicle he/she will be able to do so once in seven

Car Finance Facility:

This provision is to facilitate those employees who wish to purchase a vehicle for personal and business use in lieu of the grade entitled car facility. % loan obtained by an employee under this scheme must be utilized to buy back the existing grade specific Bank provided vehicles or to purchase any other vehicle and not for any other purpose. % contravention of this or any other provision listed herein will result in cessation of benefits or any other appropriate action against the concerned employee. To avail this finance facility a written re&uest along with a &uotation for purchase of a car may be submitted to the H' ( $inancial )ervices * +evelopment! for approval. Loan Limit: The loan will be granted for the full purchase price of new or old cars purchased for both business and personal use capped at the maximum ex,factory price of the above mentioned grade entitled car s! or Bank-s assessed value of the car, whichever is lower. .oan shall only be granted for purchase of imported and locally manufactured cars which are not more than five years and two years old respectively. %ny premium on top of the ex,factory price, initial registration cost and insurance cost will be borne by the employee. #nsurance for the first year shall be paid upfront by the employee and for subse&uent years insurance cost will be deducted in advance through monthly installments. #n case an executive wishes to purchase a used vehicle and it is believed that the price of the car &uoted is not according to the market value the Bank reserves the right to have the vehicle inspected by a Bank approved car dealer to determine the actual car value. The cost incurred in the process will be borne by the executive. The bank in its sole discretion may approve the loan application for a lower amount if in its view the stated value of the vehicle is more than the market value. /nce determined, the maximum loan limit is capped from the time of disbursement for the full five,year loan term. )hould a loan be drawn for less than the maximum available entitlement, the disbursed amount becomes the 0capped maximum- for the five years i.e a loan cannot be redrawn later for the unused portion! Mark-up The markup for the finance is presently set at ten percent 123! per annum and may be revised at the discretion of the management. Renewal: % new car loan can be availed after expiry of five 4! years from the date of disbursement or in the case of a promotion sub5ect to clearance of all previous outstanding dues. #n the event of any loss of the vehicle on account of accident, theft, fire, etc. the finance can be re applied sub5ect to the

ad5ustment of the previous out standings including the mark,up. #ncase an employee wishes to replace the vehicle finance through this facility!, he/she may do so only once in the five year loan tenure. However the employee will have to settle the outstanding loan amount. 6oreover the new loan limit/entitlement will be capped at the previous remaining principle amount. Repayment: The repayment will be made on an e&ual monthly installment calculated on an annuity basis which will be deducted from the employee-s monthly salary. The repayments shall commence from the calendar month following that in which the loan is drawn. This installment plan will be spread out on a maximum period of 4 years. The employee may opt to avail this loan facility for a less than five years period provided that the loan installment is not more than 723 of the amount of the conveyance allowance paid. 8here an executive is nearing retirement the loan must be repaid within either the normal five year term or by the date of retirement or by the date of .9' starts whichever comes first. Dis ursement: +isbursement of the finance shall be sub5ect to completion of the re&uired documents. +isbursement of the finance will be made in lump,sum to the Bank approved automobile dealer or seller at the time of purchase. The amount of finance will be disbursed in the form of an account payee check or pay order made out in the favor of the seller of the vehicle. The vehicle registration book, booking slip in case of car booked from dealer! insurance papers and letters addressed by the seller to the registration authorities and the police in connection with the registration and transfer of the vehicle in &uestion should be submitted immediately to the Bank after completion of the transaction or :2 days after disbursement of the loan whichever is earlier. #n case of booking the car from local manufacturer the above :2 days starts from the date of delivery of the car. The car will have to be transferred in the name of the employee within :2 days of the date of purchase or delivery failing which the finance may be withdrawn and/or conveyance allowance may be discontinued. #n case of purchase of imported vehicle, $inance facility will only be allowed on the vehicle readily available in the country and sub5ect to submission of appropriate/re&uisite documents. Documentation: 'egistration expenses shall be borne by the employee. 9re * 9ost +isbursement )ecurity documents, as stated from time to time by the relevant authority, will have to be provided by the employee within given time period. Re!istration an" #a$es: The car is re&uired to be registered by the employee under his own name. % hypothecation should be executed under this policy and is to be specified in the registration book. %fter repayment of the loan, the bank will issue an ;/" to the employee, denouncing all rights of ownership of the bank on the vehicle. The payment of all annual taxes is also to be made by the employee. Compre%ensi&e Insurance: +uring the term of this facility, it is absolutely necessary for the concerned vehicle to be kept completely insured from an insurance company listed on the Bank-s panel. #t will be the sole responsibility of the employee to pay the insurance premiums on or before the due dates, failing which can lead to a strict action taken against him/her. $acility of the available discount rate for insurance may be availed. Cessation o' Ser&ice: #n case an employee who is availing this facility resigns / is terminated from service, he will have to clear the entire amount at the time or before his/her settlement. H' will not provide clearance to the employee until the amount has been settled. <pon cessation of service the bank may

recover from the executive the amount of monthly conveyance allowance paid in excess of the last working day. 9lease note that returning the vehicle to the bank is not an option. =mployee may be given an option to convert this loan on commercial terms and conditions with prior clearance of H' and approval of relevant authority. %fter 1> days of cessation of service commercial rate will be applicable as decided by management from time to time! till the date of settlement. %ppropriate recovery procedures will be initiated in case the outstanding amount is not settled within >4days of the employee-s last working day in the Bank. Acci"ents an" #%e'ts %ll reasonable precautions should be taken to guard against thefts and to prevent accidents. #n the event the Bank vehicle is involved in an accident or is stolen, the employee must immediately report the incident to the local police and subse&uently must intimate ?)+ through their respective office. #n addition, it is also the employee-s responsibility to ensure that all legal re&uirements are fulfilled in timely manner and the insurance company has been notified. (it%"rawal o' )ank Car % Bank vehicle assigned to an employee is sub5ect to withdrawal at the sole discretion of the Bank, incase of abuse of the privilege. %buse may include repeated accidents, improper maintenance, and unauthorized usage etc. Repair an" Maintenance *$pense The Bank will bear the repair and maintenance expenses incurred on the car till such time the /wnership remains with the Bank. However, at the end of five years if the employee purchases the grade specific car, the total maintenance expense during the 4 year period will be recovered from the employee. #f the maintenance expense in one year remains under the maximum limit allowed it can be carried forward to the subse&uent years, provided the maintenance expense does not exceed the total limit allowed for 4 years. % log of total expense incurred will be maintained by ?eneral )ervices +ivision/ "%+.