Term Deposits

Agenda

 Introduction

 Product Features & Benefits

 New product proposition FD Xtra

 Sales Pitches

 Term Deposit Account Opening

 Compliance

 Term Deposit Servicing

Current consumer sentiments

Trust erosion in multiple asset classes

Biggest expectation: Capital protection
Behavior: Fence sitter and risk averse
 Why Fixed Deposits?
FEAR

CAPITAL PROTECTION

FENCE SITTER

FD scores high on safety and liquidity

Types of Term Deposits

• Regular Fixed Deposit

• Recurring Deposit
• Tax Saver Fixed Deposit
• Money Multiplier Deposit
Product Features and Benefits
Regular Fixed Deposits - Benefits
1.
Attractive
2.
Safe
interest rates investment
(additional plan (creation
rate for senior of pool funds
citizens) for future use)

3. 4.
Liquidity:
Choice of premature
investment plan: withdrawal
traditional/ allowed (subject
cumulative to applicable
penalty)
Regular Fixed Deposits - Features

Features Limits
Minimum deposit amount Rs. 10,000
Duration of deposit Traditional FD
• Min 7 days; Max 10 years
Cumulative FD
• Min 6 months & Max 10 years
Overdraft available on deposit Up to 90% of the deposit
Medium of opening the deposit Branch
Internet/Phone banking, iMobile
and ICICI Bank ATMs Whatsapp Banking.
I-Direct
Regular Fixed Deposits - Offering

Type of Deposit Traditional FD Cumulative FD

Interest Payment Quarterly/ Monthly Only on Maturity

Interest Calculations Simple Interest Quarterly Compounding

Minimum Tenure 7 days 6 months

Example : Interest Rs. 8000 for 1 year Rs. 8,243/- for 1 year
Earned on FD of Rs. 1 lac
@ 8.00% p.a.: Rs. 16000 for 2 years Rs. 17,166/- for 2 years
Cumulative FD
Rs. 24000 for 3 years Rs. 26824 for 3 years
Recurring Deposits - Benefits
1. 2.

Safe and Auto transfer of

convenient funds from
savings per month savings account

3. 4.
Liquidity:
premature
Easy booking
withdrawal allowed
through alternate
(subject to
channels
applicable
penalty)
Recurring Deposits
Eligibility:

• Individuals, HUF and TASC Customers

•In case of HUF, application form needs to be filled and signed by the Karta
• Other Non-individuals like Firms and Pvt Ltd companies are not eligible
Features and Benefits:

• Deposit amount: Minimum Rs. 500 and then in multiples of Rs. 100
• Tenure of deposit: Minimum 6 months and maximum of 10 years
• Loan available on deposit: Up to 90% of the deposit
• Auto debit facility through Standing Instruction
• Penalty of Rs 12 per 1,000 per month for delay in payment of instalment
• TDS is applicable on RD
• Safe and convenient savings per month
• Auto transfer of funds from savings account
• Liquidity: premature withdrawal allowed (subject to applicable penalty)
Recurring Deposits - Features

Features Limits
Minimum deposit amount ₹500 and then in multiples of
₹100 thereof
Minimum Tenure 6 months and then in
multiples of 3 months to a
maximum of 10 years
Overdraft available on deposit Up to 90% of the deposit

Auto debit facility through Standing Instruction

Tax Saver Fixed Deposits - Benefits

1. Tax 2. 3. Choice of
High return investment
exemption
through plan:
under section
attractive Traditional/
80(C) of Income
Interest rate Cumulative
Tax Act

4. 5.
Additional Auto
interest rate Closure Option/
for Auto renewal
senior citizens not allowed
Tax Saver Fixed Deposits - Features
Features Limits
Eligibility Individual , HUF (Karta Only), Proprietor in
name of individual capacity

Duration of Deposit 5 years only

Amount of Deposit Minimum ₹10,000/-, Maximum ₹1,50,000/-
in multiples of ₹100
Rate of Interest Prevailing Bank rates for Fixed Deposits for 5
years. Additional rates for Senior citizens
will also apply
Liens No Overdraft or liens against the deposit will
be permitted
Premature/ Partial Withdrawals Not allowed
Auto Renewal Not available
Tax Saver Fixed Deposits
Features and Benefits:

• Tax Saving through tax exemption under section 80C of Income Tax Act, 1961
• Deposit amount: Min. Rs. 10,000 and Max. Rs. 1,50,000 in multiples of Rs. 100
• Only Individuals , HUF ,Proprietor in the name of individual capacity.
• Tenure of deposit: 5 years - mandatory lock in of 5 years
• High return through attractive interest rate
• Choice of investment plan: Traditional/ Cumulative
• Additional interest rate for senior citizens
• Tax Saver Fixed Deposit scheme will not have the following facilities:
•Premature withdrawal
•Loan against Fixed Deposit
•Auto-renewal facility
Money Multiplier Deposits - Benefits

1. Helps to earn 2.
FDs linked to
higher
SB account for
interest
automatic
rates than SB
reverse sweep
account

3.
Easy booking
through
alternate
channels
Money Multiplier Deposits - Features
Features Limits
Minimum Tenure 1 year

Reverse sweep provided In multiples of ₹1

Minimum balance in SB account for FD creation ₹15,000

Minimum amount of FD creation ₹5,000 and in
multiples thereof
FDs will be broken in LIFO (last in first out) basis for reverse sweep
FD subject to premature penalty in case of premature closure
Interest Calculation
Calculating Interest on Term Deposits

Interest calculation for cumulative deposits

• Quarterly compounded interest on completion of exact quarters

• For the broken period beyond completed quarters simple interest is calculated on
the cumulative deposit amount for remaining number of days

• Tax deducted on interest accrued on March 31st of every year and on maturity

• Interest on the TDS amount from April 1st till maturity of the deposit is adjusted
from the interest payable to the client
Exercise on TD Interest Calculation

Details

• Principal amount: Rs. 10 lakhs

• TD type: Cumulative FD

• Term: 6 months and 4 days

• Interest rate: 6.5%

• TD opening date: November 25, 2011

• TDS @ 10%
Answer - TD Interest Calculation
Principal Q start Q end No of Days Interest Interest TDS
date date rate Amt
1,000,000 11/25/11 02/24/12 92 6.25 15,625 -

Interest from 25-02-2012 to 31-03-2012

1,015,625 02/25/12 03/24/12 28 6.25 5,290 -

1,015,625 03/25/12 03/31/12 7 6.25 1,194 -

Interest from 25-11-2011 to 31-03-2012 22,109 2,211

Next Financial Year
1,015,625 04/01/12 05/24/12 54 6.25 9,365 -

Interest from 25-05-2011 to28-05-2011

1,029,263 05/25/12 05/28/12 4 6.25 705 -

Interest from 01-04-2012 to 28-05-2012 10,070 1,007

Total 32,179 3,218
Net Interest Payable ( Total Interest Amt - Total TDS) 28,961
Maturity Value : ( Principal + Net Interest Payable) 1,028,961
Answer- TD Interest Calculation
Q-1 From Nov 25th - Feb 24th
Interest has been calculated for the
Principal Amount * Interest Rate *
complete quarter and compounded:
3M/12M
1 Quarter

Due to broken period, simple

(Principal + interest earned in Q1)*
From Feb 25th - Mar 24th interest has been computed. 1
Interest Rate * 1M/12M
Month

Due to broken period, simple (Principal + interest earned in Q1)*

From Mar 25th - Mar 31st
interest has been computed. 7 Days Interest Rate * 7D/12M/31D

TDS has been deducted @10%

March 31st
amounting to Rs. 2211/-

Interest for the complete quarter

(Principal Amount + Interest Earned in
Q-2 (Feb 25th - May 24th) has been
Q1) * Interest Rate * 3M/12M
calculated. 1 Quarter

From this following have been

Less:
deducted:
From Apr 1st - May 24th
Simple Interest accrued for the
As calculated above
period (Feb 25th - Mar 31st)

Interest earned on the TDS amount

(TDS deducted) * Interest Rate *
(Rs.2211/-) for the period (Apr 1st
54D/365D
to May 24th)

Remaining Simple Interest has been computed: (Principal + Interest earned in Q1 + Q2

From May 25th - May 28th
Days 4 days less TDS) * Interest rate * 4D/365D
Overdraft Against Deposits
Customers may need part of the funds before the TD Matures. Options available:

• Closure before maturity

• Availing Overdraft against deposits

Comparative advantages on different residual maturities

Discretion to the bank on extent of loan Loan to Value (LTV)

Interest Rates charged on loans

Customer can avail overdraft against fixed deposit from either of the channels
• By visiting Branch

• Online from Retail Internet Banking

• iMobile
New product proposition FD Xtra
FD Xtra
1. 2.

FD Card FD Income

3. 4. 5.

FD Invest FD Life FD Health

1. FD Card: Customer proposition

• FD Card offers a free instant platinum credit card against Fixed Deposit

• It also offers a feature rich coral credit card with Fixed Deposit

• Offers customers the safety of FD and liquidity through credit card

• Card will be issued instantly without any income documentation

• Instant Credit Card opened also help build / improve credit history

• Earn interest at prevailing interest rates

• Minimum amount of Rs. 10,000 with FD tenure above 6 months

• FD need to be opened in auto renewal mode only

• The FD can be of Cumulative FD or Traditional FD

• Free platinum chip credit card instantly issues against Fixed Deposit from across ICICI Bank
branches

• Option to apply for feature rich ICICI Bank Coral Credit Card
FD Card: Process flow for sourcing staff

• FD application form to be processed and FD to be created in i-Core

• Platinum Credit Cards can be issued in following 3 easy steps
• Collect the completed application form from customer
• Handover of Card kit to customer and take signed acknowledgement slip.
• Raise SR for card activation as per below paths.
• Attach scan copies of application form, Duly Discharged FDR and self-attested copy of
customer identity proof copy in the SR.
• SR Path : CC_Deliverables related - CC_Instant Credit card Issuance – Scanner branches
FD Card: Features

Coral Credit Card

• Joining Fee - ₹500
• Annual Fee: ₹500 (waived off on spends of ₹1,25,000 + in previous year)
• Complimentary airport lounge access, courtesy Visa.
• 2 complimentary movie tickets every month under the Buy One Get One free offer through
www.bookmyshow.com
Platinum Credit Card:
• Lifetime Free Credit Card
• 2 PAYBACK points for every ₹100 spent (except on fuel)
• ₹100 discount on up to 2 movie tickets per month at www.bookmyshow.com
FD Card: Process flow on digital channels

 FD Card can be opened through the following channels:

 iMobile:
 Log in >> Invest >> Deposits >> Open FD Xtra >> FD Card
 Enter FD Amount, Tenure, Interest payout option
 Select credit card type
 Check on T&C; Click on Submit

 Internet Banking:
 Log in >> Dashboard >> Open Deposits >> Open FD Xtra >> FD Card
 Enter FD Amount, Tenure, Interest payout option
 Select credit card type
 Check on T&C; Click on Submit
 On submission of request, confirmation of FD creation and card issuance will be shown
2. FD Income & RD Income

RD with
RD with
Lump Sum &
Monthly
Monthly
Income
Income
option
option
FD with
FD with
Lump Sum &
Monthly
Monthly
Income
Income
option
option
RD with Lump Sum & Monthly Income option
• Plan consists of 2 phases : Investment Period, Pay-out Period
• Max. Total tenure ( Investment + Pay-out phase) : 10 years
• Features of Investment period:
• Min. RD amount : Rs 2000/- , in multiples of Rs 100 thereof
• Min. Investment tenure : 2 years , in multiples of 3 months
• Features of Pay-out phase:
• 30% lump sum pay-out on completion of investment phase
• Reinvestment of balance 70% in an fixed deposit for monthly pay-out
• Automatic credit in Saving Account to fund expenses
• Min. Pay-out phase : 2 year , in multiples of 12 months
• Repayment frequency option : Monthly
• Rate of Interest : Prevailing interest rate at the time of opening of deposit. Rate of interest
applicable for total tenure of investment + pay-out phase
• Premature withdrawal allowed in both phases, subject to applicable penalty
Process Flow
• Customer walks in to the Branch to apply for RD with Lump-sum & Monthly Income option
• Branch staff shall inform the customer about the features of RD with Lump-sum & Monthly Income
option wherein customer receives
• 30% of balance after investment phase as lump-sum payment
• 70% of balance through monthly fixed income/payout for payout period
• Staff shall illustrate the product features using the Product calculator highlighting the lump-sum
and payout the customer shall receive during the payout phase.
• Customer shall fill the application form with details like deposit amount, deposit tenure with
bifurcation between investment phase and payout phase
• The Branch/Sales official will check whether the application forms received from customers are
duly signed and filled with all mandatory details.
• Branch official shall open the deposit account in I-core and confirm the account details to the
customer.
Target Customer

Target Customer Customer Needs / Aspirations

 Holidays, Business Expansion

Small Businessman /  Consumer Durables, machinery etc
Shopkeeper < 45 years  Down Payment of New Car, Dream Home
 EMI payments, Child Education

 For Gadgets, Holidays, Bike purchase

Salaried < 28 years  For New Car down payment
 Higher education expenses
RD Monthly Income option
• Plan consists of 2 phases : Investment Period, Pay-out Period
• Max. Total tenure ( Investment + Pay-out phase) : 10 years
• Features of Investment period:
• Min. RD amount : Rs 2000/- , in multiples of Rs 100 thereof
• Min. Investment tenure : 2 years , in multiples of 3 months
• Features of Pay-out phase:
• Reinvestment of corpus in an fixed deposit for monthly pay-out
• Automatic credit in Saving Account to fund expenses
• Min. Pay-out phase : 2 year , in multiples of 12 months
• Repayment frequency option : Monthly
• Rate of Interest : Prevailing interest rate at the time of opening of deposit. Rate of interest
applicable for total tenure of investment + pay-out phase
• Premature withdrawal allowed in both phases, subject to applicable penalty
Process Flow
• Customer walks in to the Branch to apply for RD with Monthly Income option
• Branch staff shall inform the customer about the features of RD with Monthly Income option
wherein customer receives monthly fixed income/payout for payout period as chosen by
customer
• Staff shall illustrate the product features using the Product calculator highlighting the monthly
payout the customer shall receive during the payout phase.
• Customer shall fill the Application form with details like deposit amount, deposit tenure with
bifurcation between investment phase and payout phase
• The Branch/Sales official will check whether the application forms received from customers are
duly signed and filled with all mandatory details.
• Branch official shall open the deposit account in I-core and confirm the account details to the
customer.
Target Customer

Target Customer Customer Needs / Aspirations

 Financial Freedom, Regular monthly income

Senior Citizen Customers  Financial welfare of grandchildren
 Gifting to loved ones, Small Holidays

 Leap towards financial independence

 Regular monthly income
Housewives
 Hobby classes, kid’s education expense
 Social Engagements
FD with Lump Sum & Monthly Income option
• Plan consists of 2 phases : Investment Period, Pay-out Period
• Max. Total tenure ( Investment + Pay-out phase) : 10 years
• Features of Investment period:
• Min. FD amount : Rs 1Lac /- , in multiples of Rs 25,000/- thereof
• Min. Investment tenure : 2 years , in multiples of 1 month
• Features of Pay-out phase:
• 30% lump sum pay-out on completion of investment phase
• Reinvestment of balance 70% in an fixed deposit for monthly pay-out
• Automatic credit in Saving Account to fund payment / expenses
• Min. Pay-out phase : 2 year , in multiples of 12 months
• Repayment frequency option : Monthly
• Rate of Interest : Prevailing interest rate at the time of opening of deposit. Rate of interest
applicable for total tenure of investment + pay-out phase
• Premature withdrawal allowed in both phases, subject to applicable penalty
Process Flow
• Customer walks in to the Branch to apply for FD with Lump-sum & Monthly Income option
• Branch staff shall inform the customer about the features of FD with Lump-sum & Monthly Income
option wherein customer receives
• 30% of balance after investment phase as lump-sum payment
• 70% of balance through monthly fixed income/payout for payout period
• Staff shall illustrate the product features using the Product calculator highlighting the lump-sum
and payout the customer shall receive during the payout phase.
• Customer shall fill the Application form with details like deposit amount, deposit tenure with
bifurcation between investment phase and payout phase
• The Branch/Sales official will check whether the application forms received from customers are
duly signed and filled with all mandatory details.
• Branch official shall open the deposit account in I-core and confirm the account details to the
customer.
Target Customer

Target Customer Customer Needs / Aspirations

 Financial security with regular income

Small Businessman /  Holidays, Child Education,
Shopkeeper < 45 years  Car, Home Loan down payment and EMI
 Business Expansion, Vendor Payments etc

 Financial security, regular monthly income

Affluent Farmers  Child Education, Holidays etc
 Farm Equipment purchase, Farm expansion
FD Monthly Income option
• Plan consists of 2 phases : Investment Period, Pay-out Period
• Max. Total tenure ( Investment + Pay-out phase) : 10 years
• Features of Investment period:
• Min. RD amount : Rs 1Lac /- , in multiples of Rs 25,000/- thereof
• Min. Investment tenure : 2 years , in multiples of 3 months
• Features of Pay-out phase:
• Reinvestment of corpus in an fixed deposit for monthly pay-out
• Automatic credit in Saving Account to fund expenses
• Min. Pay-out phase : 2 year , in multiples of 12 months
• Repayment frequency option : Monthly
• Rate of Interest : Prevailing interest rate at the time of opening of deposit. Rate of interest
applicable for total tenure of investment + pay-out phase
• Premature withdrawal allowed in both phases, subject to applicable penalty
Process Flow
• Customer walks in to the Branch to apply for FD with Monthly Income option
• Branch staff shall inform the customer about the features of FD with Monthly Income option
wherein customer receives monthly fixed income/payout for payout period as chosen by
customer
• Staff shall illustrate the product features using the Product calculator highlighting the monthly
payout the customer shall receive during the payout phase.
• Customer shall fill the Application form with details like deposit amount, deposit tenure with
bifurcation between investment phase and payout phase
• The Branch/Sales official will check whether the application forms received from customers are
duly signed and filled with all mandatory details.
• Branch official shall open the deposit account in I-core and confirm the account details to the
customer.
Target Customer

Target Customer Customer Needs / Aspirations

 Financial security with regular income

Small Businessman /  Holidays, Child Education,
Shopkeeper > 45 years  Car, Home Loan down payment and EMI
 Business Expansion, Vendor Payments etc

 Retirement planning, regular income

Salaried: 50 – 60 years  Higher education of children
 Last leg of EMI
3. FD Invest: Customer proposition

• Unique product of Fixed Deposit (FD) and Mutual Fund (MF SIP)
investment

• Offers customers the safety of FD and returns of a MF SIP

• FD Invest will earn monthly interest on principal invested and the

interest will be invested in Mutual Fund SIP

• Earn interest at prevailing interest rates

FD Invest: Eligible Deposits & Details

• FD opened is in Traditional FD with Monthly Interest payout option

• Minimum Fixed Deposit amount is Rs.2 lakh

• Can be opened in auto renewal or auto closure mode

• Tenure duration can be from 12 months to 10 years

• Earn interest at prevailing interest rates

• Senior citizens would be eligible for 0.50% additional interest rate

FD Invest: Mutual Fund SIP Details

• Fund choice: Choose from wide range of ICICI Prudential Mutual Funds

• SIP Amount: Minimum Rs 1000

• SIP Tenure: Minimum 1 year

• SIP Frequency: Monthly

• MF AMC: ICICI Prudential AMC. Available Funds for SIP

• SIP Date:
• T+1 month and 3 days, where T is the date of opening of FD Invest
• If the SIP date falls on 29th, 30th or 31st of the month, then the SIP
date will be 1st of the next month
FD Invest: Customer Eligibility

• Can be opened by resident Indian individual only

• Need to have active Savings Account with ICICI Bank

• Should possess a valid PAN number

• Holding pattern / Mode of Operation should be single

• Account should be opened on or after Jan 01, 2007

FD Invest: Process flow for sourcing staff (1/2)

• Process to be followed for FD Invest

• All sourcing staff should be AMFI registered and having valid EUIN no.
• Visit iView to access combined application form for eligible customers
only
• Profile the customer through Investment Profiling Module on iSense if its
not profiled already.
• Visit the Pre filled forms >Term Deposits> FD Invest – Mutual Fund SIP
with Fixed Deposit
• Most of the fields in section are prepopulated
• Download the form after all the fields are entered
• Seek customer signature on completed application form
• Process the FD opening as per existing process in I-core
FD Invest: Process flow for sourcing staff (2/2)

MF SIP registration process

• For MF SIP registration visit the generate Service Request section of FD
Invest – Mutual Fund SIP with Fixed Deposit
• All fields will be auto populated in this section
• Enter the FD No.
• Scan the duly signed FD + MF combined form
• Attach the scan copy of combined FD + MF form and create the SR
FD Invest: Process Flow
List of Schemes
4. FD Life: Customer proposition

• One of a kind product proposition where Fixed Deposit is combined with

Term Life Cover

• Applicable on all retail Fixed Deposits of value 3 lakh and above and
minimum tenure of 2 years

• Free term life cover of Rs.3 lakh on FDs for 1 year

• Free cover is capped at 3 lakhs irrespective of FD amount
FD Life: Customer proposition

• Product eligibility summary

FD Amount Rs. 3 lakhs and above

FD Tenure Minimum 2 years

FD Rates Prevailing interest rates

Life Cover Rs. 3 lakhs for 1 year

Life Cover Charges Nil for first year

Customer Age in years 18 to 50

Has customer been
No
hospitalised?
FD Life: Process Flow

1 Sales Pitch for FD 2a Enter customer details on i-core for

Customer visits opening FD A/c
amount of 3 lacs or Customer Yes
ICICI Bank branch Take customer consent for Free Life
more with Tenure Interested
for Opening FD A/c
of 2 years or more 2 Cover on ICICI Pru Group Life
Insurance Form
b
Decline
END
5 Message 4 3
Enter FD account number
Customer information gets Login with Employee ID and
pre-populated Validation failed Validations on i-neo back end password on i-neo page
Fill Nominee Details,  Age between 18 – 50
Declaration of Good Health Validation success  FD Amount – 3 lacs Click option FD Life
Review & Submit  Tenure – 2 years
 De-dup basis PAN
 Resident Indian & Individual Customers
6 7
Download Cover Note for ICICI Pru issues the policy
insurance
Certificate of Insurance
Print and handover to the link sent to customer via
customer sms & email
FD Life: Claim documentation

Documentation for claims

• Duly Filled Claim Form
• Original Certificate of Insurance
• Member Consent Form
• Death certificate issued by the local authority
• Claimants Cancelled cheque/ Copy of Bank passbook
• Claimants photo identity proof
• Claimants current address proof

Note: Apart from above list, ICICI Prudential may require any other document for
processing of the claim depending on the cause of the claim
5. FD Health: Customer proposition

• One of a kind product proposition where Fixed Deposit is combined with

Health Cover covering 33 Critical Illnesses

• Applicable on all retail Fixed Deposits of value 2 lakh to less than 3 lakhs
and minimum tenure of 2 years

• Free health cover of Rs. 1 lakh on FDs for 1 year

• Free cover is capped at 1 lakh irrespective of FD amount

55
FD Health: Customer proposition

• Product eligibility summary

FD Amount Rs. 2 lakhs to less than Rs 3 lakhs

FD Tenure Minimum 2 years

FD Rates Prevailing interest rates

Health Cover Rs. 1 lakh for 1 year

Health Cover Charges Nil for first year

Customer Age in years 18 to 50

Has customer been
No
hospitalized?

56
FD Health: Process Flow

1 2a Enter customer details in i-core for

Customer visits Pitch FD &
opening FD A/c in scheme code
ICICI Bank explain product Customer Yes
CFESY
branch features Interested
2 Take customer consent for Free
Health on ICICI Lombard Insurance
b Enrollment Form

3
4
ICICI Lombard issues the policy FD is created in I-core

Certificate of Insurance link sent to Pre-confirmation SMS is sent

customer via sms & email to customer on T+1 day
FD Health: Application form filling

58
FD Health: Fixed Deposit Opening

FD Details

• FD should be opened in specific scheme code CFESY under

this product. The same is mentioned on the FD application
form.
• Free Health cover would be offered for FDs opened basis this
scheme code.

59
FD Health: Health Cover Form

Customer and FD Details in Enrollment Form

• In Health Cover Enrollment Form, Staff needs to fill customer

and FD details in this part.

60
FD Health: Health Cover Form

Health Status

• Customer to answer all Health Status related questions

61
FD Health: 33 critical illnesses covered
Lung Conditions Musculoskeletal Diseases Neuro/spinal & psychiatric disease
• End stage Lung Disease.
• Muscular Dystrophy • Multiple Sclerosis with persisting symptoms.
• Primary Pulmonary Hypertension.
• Poliomyelitis • Motor Neuron Disease with Permanent
Symptoms.

Liver Conditions
• Permanent Paralysis of Limbs.
Auto immune Diseases • Stroke resulting in permanent symptoms.
• End stage Liver Disease. • Coma of specified severity.
• Systematic Lupus Erythematosus with • Alzheimer’s Disease.
Renal Diseases Renal Involvement.
• Parkinson’s Disease.
• Kidney Failure requiring regular dialysis.
• Myasthenia Gravis
• Apallic Syndrome.
• Medullary Cystic Disease. • Scleroderma
• Benign Brain Tumor.
• Good Pastures Syndrome with Lung or
• Creutzfeldt-Jacob Disease.
Renal Involvement.
• Major Head Trauma
Bleeding Disorders
• Aplastic Anaemia

Heart and vascular Conditions Others Others

• Blindness • Loss of Limbs.
• Myocardial Infarction. • Deafness • Loss of Independent Existence.
• Refractory Heart Failure. • Cancer of Specified Severity
• Cardiomyopathy • Third Degree Burns.
• Loss of Speech.
FD Health: Claim documentation

Documentation for claims

• Duly Filled Claim Form
• Original Certificate of Insurance
• Indoor case papers mentioning diagnosis, date and time of discharge,
hospital bills, etc
• Hospital Discharge summary

Note: Apart from above list, ICICI Lombard may require any other document for processing
of the claim depending on the cause of the claim

63
Term Deposit Account Opening
Term Deposit Account Opening

 Regular Fixed Deposits – Account Opening

 RD Opening and Key Checkpoints
 Key Things to know
 Tax Saver FD – Account Opening
Regular Fixed Deposits - Key Things to know

● Credit of RD: Achievement will be considered basis DSA Code captured

against the RD
● Tenure of RD: To be strictly 1 year or 6 Months as applicable. Offer
doesn’t hold true otherwise.
● Fund Transfer to Partner: Customer consent is taken on RD form. Post
maturity funds including the interest amount will be transferred to
Partner’s current account to avail the offer or to the partner’s Gift
Card.
● Flexibility to Withdraw from offer: Customer shall receive an
intimation from the Bank two months before the maturity. Customer
may choose not to avail the offer by visiting the nearest Branch. In this
scenario of customer opting out, benefit from Partner shall not be
applicable & funds shall be parked to customer’s savings account .
FD Target segment - Bulk FD and do’s and don’ts
● Societies - FD gives assured fixed returns safe & higher returns with liquidity. Societies are aware
that they are likely to do regular maintenance expenses like water bill, electricity bill, security
wages etc, painting work hence can invest in FD with various payouts option to meet their
requirements.
● Corporate Companies - park the funds in short term FD to earn interest rather than keeping in
current account with interest. Amount apportioned out of the profits can be set aside till payment
date which help the corporates to earn income in such funds which are payable in short period as
bonus, salary, reimbursement payments.
● Temple - Temples receive lots of donations by way of cash, cheques, hundis, gold etc. Since the
entire amt is not being used at a time & FD is the best option to park the funds with good returns
with liquidity option which can use as temple further extensions, development's, maintenance etc.
● FDBG - Against bank guarantee the safest security can take is an FD. where lien can be marked
against the FD this deposit also earns income for the client as well as the bank has a benefit that in
case the client is not able to pay back the guarantee the deposit cannot be encashed.
● Corporation Banks FD - For Muncipal corporation or Govt bodies, money market or shares avenue is
blocked the returns in savings bank is low, and current account does not earn any interest hence FD
is the best.
● Contractors, aggregators – Helps contractors when they apply for tenders by securing their FD also
earn interest on amount for tender purpose, FD is the best avenue for earning fixed assured returns.
Compliance
Compliance Norms
• PAN or Form 60 is mandatory if deposit placed on a particular day
exceeds Rs. 50,000.

• Repayment account, in case of payout FD interest credit account should

be in the same customer ID. In case of standalone FDs it should be
updated as branch sldeposit account.

• FD should be opened in auto renewal mode unless specified otherwise

by the customer.

• TDS is applicable in case interest income exceeds Rs 10,000 for general

customers and Rs. 50,000 for senior citizens.

• In case customer is eligible for TDS Exemption he should be requested to

submit Form 15G /H.

• Form 15 G /H needs to be submitted in every financial year and for

every FD /RD opened with the Bank.
Term Deposit Servicing
Term Deposit Servicing
• FD Servicing at Branches Simplified multiple services
• Premature/Partial Withdrawal
• Tax Treatment
• Loan Against FD
• Auto Renewal
• Auto Closure
• Nomination Updation
• Interest Paid Certificate
FD Servicing at Branches Simplified multiple services – I-View 2.0 Application

• To simplify deposits
servicing at branches &
support in achieving our
mission by delivering
superior service experience
to customers, which has
been designed keeping in
view all the 3 stages of
fixed deposit life cycle to
cater all servicing needs of
customer through single
page interface.
Premature/ Partial Withdrawal:
The Bank on request from the depositor, allows premature withdrawal of term deposit before
completion of the period. Term Deposit when closed prematurely:
• Gets lower rate of Interest (at rate applicable for the Period the deposit has actually
remained with ICICI Bank).
• Further penalty will be levied on the rate applicable as per the Premature Penalty table
given over page.
• In case of deceased claim settlement, penalty will not be levied.
• Customer can places a request from any of the following channels
•Branch
•Online on Retail Internet Banking
•iMobile
Premature Closure for Joint Account:
• Allowed for premature withdrawal if joint deposit holders have submitted “Joint
Declaration” for premature withdrawal with consent of all deposit holders at the time of
deposit opening or before executing this option
• Premature withdrawal by surviving deposit holder without the concurrence of the legal
heirs of the deceased deposit holder when one of the term deposit holder is deceased
• Premature withdrawal by either one of the deposit holders without the concurrence of the
other deposit holder, even when all of them are alive (not applicable for “Former or
Survivor”).
Premature/ Partial Withdrawal:
Premature Closure for Joint Account (Contd.):
• For new deposit customers: The “Joint declaration clause” is added in the new
deposit slip.
• For existing deposit customers: The separate “Joint Declaration Form” signed by all
the depositors should be submitted at an ICICI Bank branch.
• Two new MOP (mode of Operations) are added to facilitate this option:
• Either or Survivor with premature closure mandate (ERSPC)
• Former or Survivor with premature closure mandate (FORPC)

Applicable Interest Rates: Interest will be calculated at the rate applicable for the
period the deposit has actually remained with Bank subject to further penalty rates as
mentioned below.

Penalty rates on Premature Withdrawal :

Original tenure of deposit Less Than Rs 5 Cr Rs 5 Cr and above

Less Than 1 year 0.50% 0.50%

1 year and above, but less
1.00% 1.00%
than 5 years
5 years and above 1.00% 1.50%
Tax Treatment
• Interest earned will be subject to TDS, as per the Income Tax Act, 1961
• To seek exemption from TDS, customers eligible for Tax Exemption must submit the
Form 15G (non Senior citizens, Trusts, Clubs, Association, Society, HUF)/15H (for
Senior Citizens)
• Branches must instruct the customer to check and sign all the 2 copies
• An acknowledgment on one form should be given to Customer and remaining 1 form
must be sent to RPC for further processing
• Branches are required to raise individual SR for each customer request of form 15G/H
• Form 15G/15H is applicable to an entity if the total projected interest income of the
customer is below basic threshold limit prescribed by Income tax. Below is the grid to
determine the threshold limit:
• Customer can places a request from any of the following channels
• Branch
• Online on Retail Internet Banking
• iMobile Category Form Age
Exemption
limit ( ₹)
Individual 15G Less than 60 years 2,50,000
Senior citizen More than 60 years but less
15H 3,00,000
resident of India than 80 years during the year
Super Senior citizen 80 years and above during the
15H 5,00,000
resident of India year
Loan Against FD
Loan Against FD:
• Loan facility is available up to 90% of FD value.
• Individual Customer : Loan interest rate is 2% more than FD interest
rate.
• Senior Citizen: 1% above maximum rate of interest of FD(s) given as
security
• HUF: 2% above maximum rate of interest of FD(s) given as security
• The process is applicable for retail individual customers, HUF, TASC and
RFIG customers. Applicable for entities having constitution codes as
R1(Retail Individual) , E1(SEG Individual) , R11(Retail HUF) , E11(Retail
HUF) , R5(Retail Trust) , R6(Retail Association) , R7(Retail Club) , R8
(Retail Others) and R12(Retail Society).
• Customer can places a request from any of the following
channels
• Branch
• Online on Retail Internet Banking
•iMobile
Auto Renewal
• Yes, you can opt for auto renewal at the time of opening the FD or
anytime before the FD matures
• Auto renewal allows your FD to get renewed automatically for the
same period as the original deposit.
• Customer can places a request from any of the following channels
• Branch
• Online on Retail Internet Banking
• iMobile
Nomination Updation

• Nomination for an account in favor of ONE person only

• If FD opened from alternate channel, Savings account nomination would be automatically get
carried forward for fixed deposit account
• In case customer wants to nominate some other person he can do so by submitting the request
for “Change of nomination – DA3 Form” by visiting the Branch post Deposit creation.
• When FD is opened at Branch and customer wants to have a different nomination other than
Savings Account nomination, then he can add a new nominee by filling the applicable form DA1
• Nomination details updated in the FD account will appear on the FD Advice and FD Receipt as
“Nomination Registered” and “Nominee Name”.
• Customer can places a request from any of the following channels
•Branch
•Online on Retail Internet Banking
Interest paid Certificate

• Interest certificate incorporates details of interest payments/received on various

accounts for a particular customer id
• Collect written application from customer specifying the customer id
• Use ICIRSQLS menu to generate interest certificate
• To print the certificate use menu option HPR
• The charges are recovered through HGCHRG option in I-Core
• Customer can places a request from any of the following channels
•Branch
•Online on Retail Internet Banking
•iMobile
New Initiatives on Digital Channels

Open FD using Whatsapp Banking: Whatsapp Banking is one of the newest and convenient
platform to avail banking services from the comfort and safety of your home. This is
widely used app and to leverage deep reach of this channel, we have enabled opening
of Fixed Deposits on Whatsapp banking. Customers can open an instant FD in few
simple intuitive conversation based steps.

Real Time Partial Withdrawal Facility (RIB): Instant liquidity is the key feature of Fixed
Deposits as product and to support customers in their emergency need, we are now
offering instant partial withdrawal service on Retail Internet Banking. This will help
customers withdraw amount in line with their current financial need and remaining
amount of their deposit can continue to fetch FD interest for remaining tenure.
Overdraft against FD: We have been witnessing high premature closure of deposits
recently and it is imperative that we need to arrest this trend immediately.
Overdraft against Fixed Deposits can be a key solution for this issue, which will not
only help customer get instant liquidity but also protect their Fixed Deposits which
are usually booked at higher interest rates in this downward interest rate cycle.

One Click Renewal: Retention of maturity is another pillar to achieve our net book
growth objective. We have been focusing on maximizing our retention in last few
months, we are pleased to announce one click renewal of all auto closure FDs on
digital channels. Higher renewal of deposits will not only help customer minimize the
interest loss but also help us keep our deposit book intact.

Open FD with UPI based funding from other banks: Maximizing deposits from non ICICI
Bank funds is a critical objective and in order to facilitate this digitally, we have
launched a unique proposition to open FD and fund it from othr banks using UPI. This
is instant process to fund and open an FD using UPI.
Sales Pitch

 Fixed Deposits- Sales Pitch

 Recurring Deposits- Sales Pitch
 Tax Saver FD- Sales Pitch
Sales Pitch

 ICICI Bank FD offers assured returns* on your hard earned money. Earn <>% interest p.a.
for tenure from < > years up to <> years. Would you like to open an FD?

 ICICI Bank FD offers safety along with instant liquidity. Your returns are assured* and do
not depend on any uncertain market situations. Would you like to invest in FD?

*Subject to TDS (Tax Deducted at Source) wherever applicable

Check latest interest rates on universe or ICICI Bank website before quoting
Sales Pitch

 ICICI Bank FD - your go-to investments for planning towards any emergency as it offers
instant liquidity in the times of need. And they are easy to invest in to!

 <Sir/Ma'am>, while I am checking that there is a credit that has happened into your
account, how about investing a part of your idle funds into a Fixed Deposit and earning a
higher rate of interest?
Tax Saver FD – Sales Pitch

 Enables you to save tax and earn high guaranteed returns

 Tax deduction option is under 80C of Income Tax Act
 Available with lock-in-period of just 5 years
 You can save up to Rs. 1.5 Lacs from your taxable amount
 Additional benefits (of extra rate of interest) are extended to the senior
citizen customers
 Monthly or quarterly interest payout facility available
Delightful Deposits (Recurring Deposits
in partnership with retail brands)
 Table of Contents

 What is Delightful deposits?

 Quick look at all partners
 Thomas Cook – benefit details
 Tanishq - benefit details
 Croma - benefit details
 Make My Trip - benefit details
 Redemption Process
 New customer process
 Exisiting customer process – netbanking / iMobile
 How to open RD in iCore
 Sample RD form
 FAQs

87
 Delightful Deposits

 A Recurring deposit opened with the intent to purchase from retail brand partner.

 4 partners – Tanishq jewelry , Croma Electronics, Thomas Cook Holiday, Make My Trip
Holiday.

 Basic proposition:
 Save: Start Recurring Deposit with partner
 Earn : Current RD Interest rate of 6.9 %* (as per applicable rate) AND TOPUP by partner
 Buy Electronics & Home Appliances , jewelry, holiday package
 Customer can combine this with store discounts available at the time of purchase

88
 Alliances -> ThomasCook Tanishq Croma Make My Trip
Industry Holiday Makers Jewellery Home Appliances Holiday Makers
Tenure 12 Months 12 Months 6 & 12 Months 6 & 12 Months
Scheme Code RD TAN RD TAN RD TAN RD TAN
Location Code TCK TNQ CRO MMT
RD Installment Amount
₹2,000 & Above per month ₹5,000 & Above per month ₹5,000 OR ₹10,000 per month ₹5,000 & Above per month
Allowed
Redemption Mode Partner's Current Account Tanishq Gift Card Croma Gift Voucher E-Voucher

Gift Card will be given to

NA 7 days post maturity 7 days post maturity 7 Days post Maturity
Customer on
Pre-mature Closure &
Same as Normal RD
Penalty
Benefit Refer Slide 5 Refer Slide 6 Refer Slide 7 Refer Slide 8
18 months from Date of 12 months form Date of 12 Months from Date of 12 Months from Date of
Validity to avail the offer
Maturity Maturity Maturity. Maturity.

1.Mobile Phones, Laptop &

Tablets not in the offer.
2. Validity of the card is 1 year
from RD maturity
TDS will be a cost borne by TDS will be a cost borne by TDS will be a cost borne by
Terms & Conditions 3. Minimum transaction amount
the customer the customer the customer
of Rs 33,000 per invoice
4. TDS will be a cost borne by
the customer

89
 Thomas Cook RD Benefit (RD interest + TCK Top-up):
100% of Monthly installment post maturity

Illustration for Thomas Cook RD

RD Interest + Top up
Total Amount
Monthly RD Installment Principal amount RD Interest from ICICI from Thomas Cook
available for Holiday
# after 12 months Bank* (100% of the monthly
Package
(a) (b = a x 12) (c) installment amount)
e=(b+d)
d=a
2,000 24,000 911 2,000 26,000
3,000 36,000 1,366 3,000 39,000
5,000 60,000 2,277 5,000 65,000
10,000 120,000 4,554 10,000 130,000
20,000 240,000 9,109 20,000 260,000

90
 Tanishq RD Benefit (RD interest + Tanishq Top-up):
80% of Monthly installment post maturity towards purchase of jewelry at
Tanishq

Illustration for Tanishq Jewellery Plan

RD Interest + Top up
Total Amount
Monthly RD Installment Cumulative amount RD Interest from ICICI from Taishq (80% of the
available for
# after 12 months Bank* monthly installment
Jewellery Purchase
amount)

(a) (b = a x 12) (c) (d=80% of a) e=b+d

5,000 60,000 2,277 4,000 64,000

10,000 120,000 4,554 8,000 128,000

20,000 240,000 9,109 16,000 256,000

91
 Croma RD Benefit (RD interest + Croma Top-up):
As per table below ONLY.

Illustration for Croma - isave2buy RD

Tenure 6 months
Total Amount
Monthly RD Installment Cumulative amount
RD Interest from ICICI available for
# after 12 months Top-up from Croma
Bank* Purchase @Croma
(a) (b = a x 12)
Store
5,000 30,000 549 3,201 33,750
10,000 60,000 1,098 6,402 67,500

Tenure 12 months
Total Amount
Monthly RD Installment Cumulative amount
RD Interest from ICICI available for
# after 12 months Top-up from Croma
Bank* Purchase @Croma
(a) (b = a x 12)
Store
5,000 60,000 2,277 5,723 68,000
10,000 1,20,000 4,554 15,446 1,40,000

92
 Make My Trip Benefit (RD interest + MMT Top-up):
100% of Monthly installment for 12 months ; 50% of Monthly Installment for 6 months

Illustration for MakeMyTrip - Holiday Saving Plan

12 Months
RD Interest + Top up
Total Amount
Monthly RD Installment Cumulative amount RD Interest from ICICI from Make My Trip
available for Holiday
# after 12 months Bank* (100% of the monthly
Package
installment amount)
2,000 24000 911 2,000 26,000
5,000 60,000 2,277 5,000 65,000
10,000 120,000 4,554 10,000 130,000

6 Months
RD Interest + Top up
Total Amount
Monthly RD Installment Cumulative amount from Make My Trip (50%
RD Interest from ICICI available for Holiday
# after 06 months of the monthly
Bank* Package
(a) (b = a x 6) installment amount)
e=(b+d)
d=50% of a
2,000 12000 220 1,000 13,000
5,000 30000 549 2,500 32,500
10,000 60000 1098 5,000 65,000
20,000 120000 2195 10,000 130,000

93
 Redemption Process

 The customer will be sent mails, letters and calling – one month
before the maturity to confirm if they want to continue partner offer.

 IF YES,
 Tanishq : Tanishq gift card will be loaded with ICICI Bank RD maturity
amount. Tanishq top-up will be availed by visiting any Tanishq store.
 Croma: Croma Gift Card will be loaded will full amount including Croma
top-up.
 Thomas Cook: Funds will be transferred to Thomas Cook current account
 Make My Trip: Funds will be transferred to e-voucher.

94
 New Customer process
 Tanishq :
 Adv Womens Savings Account : 0 MAB until maturity of RD.
 HHSBP status code: 0 MAB lifetime account. Mandatory : Delightful Deposit, EDC and
AOC of ₹20,000/- .

 Croma:
 HHSBP status code: 0 MAB lifetime account. Mandatory : Delightful Deposit, EDC and
AOC of ₹20,000/- .

 Thomas Cook
 HHSBP status code: 0 MAB lifetime account. Mandatory : Delightful Deposit, EDC and
AOC of ₹20,000/- .

 Make My Trip:
 HHSBP status code: 0 MAB lifetime account. Mandatory : Delightful Deposit, EDC and
AOC of ₹20,000/- .

 RD Form Weblinks-> Forms & Formats -> RD for corporate Tie-ups

Tanishq/Thomas Cook/Croma/MMT

95
 iMobile & Netbanking Path for existing customer

 Netbanking:

 Login -> Deposits -> Open Deposits -> Delightful Deposits

 iMobile(Android):

 Login -> Deposits -> Open RD -> Delightful Deposits

96
 RD opening in iCore

Scheme Code - RDTAN

Location Code –
CRO/TNQ/TCK/MMT
GL SubHead Code - 18050

Deposit Amount

Deposit Period – 6
months or 12 months –

Credit proceeds to
customer Savings Account

97
 Croma RD Form

98
 Croma RD Form

99
 Croma RD Form

100
 Croma RD Form

331130

Achievement will be considered basis DSA Code captured against the RD

101
 Frequently Asked Questions:
 What kind of term deposit should be opened in Delightful Deposits along with a
Savings account?
Recurring Deposit (RD) should be opened along with a Savings account

For New customer acquisition: New-to-bank customers need to open a 0 Balance

Regular Savings A/c with HHSBP code and purchase an Expressions Debit Card

Existing customers do not need to open a new A/c or avail the Expressions Debit
Card for availing this offering

 What documents should be taken from customer in case he is an existing savings

account holder?
In case customer is an existing Savings account holder, only duly filled RD
application form should be taken from customer.

102
 Frequently Asked Questions:
 What is the monthly instalment and tenure options for which RD should be
opened?
As per partner.

 What special scheme code and location code should be selected in the RD opening
application form?
RDTAN scheme code should be selected in the RD opening application form.
Location Codes : TNQ, TCK, CRO , MMT

 What is the mode of payment for the monthly instalment?

Standing instruction for debiting savings account. In case of insufficient funds on
the Standing Instruction execution date, system shall try to execute SI for T+
next 5 working days. If customer exceeds TAT, he/she needs to visit the nearest
branch to make the payment for RD SI in the same month.

103
 Frequently Asked Questions:
 What is total return offered to customer on investing in Croma iSave2Buy
RD?
Customer will earn interest on RD from ICICI Bank at applicable interest
rate for RD period. The differential rate will be offered to customer by
Croma.
Monthly Installment Customer Offer from ICICI Additional benefit
contribution Bank + Croma for Customer
Rs 5000 for 6 months Rs 30,000 Rs 33750 75% of MI

Rs 5000 for 12 months Rs 60,000 Rs 68000 150% of MI

Rs 10,000 for 6 months Rs 60,000 Rs 67,500 75% of MI

Rs 10,000 for 12 months Rs 1,20,000 Rs 1,40,000 200% of MI

• Categories applicable:
• Home Appliances
• Kitchen Appliances
• Entertainment products eg. LED, LCD, Speakers, etc.
• Accessories including mobile and computers accessories.

104
 Frequently Asked Questions:
 How will customer be able to redeem the maturity amount of RD?
Customer will be issued a gift card/evoucher. On RD maturity, the
maturity amount will be transferred to the redemption card.

 Is premature closure of the RD allowed under this Plan?

RD opened in this Plan can be prematurely closed subject to premature
withdrawal penalty as per existing Bank policy. Customer would get the
closure proceeds in his savings account. However customer would not get
the additional discount offered by partner

 Is there any penalty if RD instalment is missed or delayed?

In case payment of RD instalment is missed or delayed or not paid in the
month in which it is payable, penalty is charged at rate of Rs 12 per
thousand of instalment amount for every month of delay.

105
 Frequently Asked Questions:
 What is the difference between Fixed Deposit and Recurring Deposit?
Fixed Deposit is an investment product where lumpsum amount can be invested
for a fixed tenure and fixed rate of interest. Recurring Deposit is an investment
product wherein instalments can be paid on a monthly basis and maturity amount
is paid on completion of tenure.

 Can customer open a standalone RD i.e. RD without savings account under

Delightful Deposits?
Under delightful deposits customer cannot open a stand alone RD. Customer has
to hold a Savings account with ICICI Bank if he wants to open a Delightful
Deposits

 Can customer transfer an existing RD?

Customer cannot transfer an existing RD. Customer has to open a new RD.

106
 Frequently Asked Questions:
 Can customer deposit cash directly in the RD opened under Delightful Deposits?
Customer cannot deposit cash directly in the RD opened under Delightful
Deposits. He / She can deposit the same in the savings account which will be
transferred to his/her RD account.

 Can customer give funding into RD from account not belonging to him?
Customer cannot give funding into RD from account not belonging to him. The
funding of the RD and payment of instalments has to be done from his own
account.

 Is customer eligible for the additional interest rates offered to senior citizen
customers?
Senior Citizen customers will be eligible for the additional rates offered to senior
citizen customers.

107
 Contact :
Vidyavati Gore (331130) for Tanishq & Croma
Santosh Singh (329904) for Thomas Cook & Make My Trip
Chitra Bhattacharjee (334753) for any other query on DD

108
Fraud Prevention at
Branches – Sales
Professional
What is fraud?

The term fraud covers

• All acts of omission and commission involving a breach of trust,
misrepresentation or wrongful performance of a normally legal act
• Fraud can be with or without monetary loss to the bank
In nutshell:
• Fraud is a deliberate act committed by a person for personal gain
• It causes harm to the organization
• It costs the organization assets, revenues and reserves
Frauds in Banking
Deception
Credit Cards Liabilities
FRAUD
Issuing Account Opening
Acquiring Cheque Fraud
Debit Card Fraud
Internet banking
Loans Cash related Frauds

Intent Harm

Home Loans
Auto Loans
Personal Loans
Commercial Business
Jewel Loans
 Frauds Common Causes
1. Non-adherence to prescribed processes

2. Short-cuts taken to finish the job

3. Negligence during Field Visits

4. No due diligence especially for Account Opening

Process

5. Perpetrated by Bank staff

112
Impact of fraud - Bank
• Reputation Risk – Customer, Share holder & Regulator
• Penalty imposed by regulatory authority
• Compensation to Customer
Impact of fraud - Employees
• Personal Image and Reputation
• Staff action ranging from caution letter to termination
• Impact on future career prospects of the employee
• Impact on family
 Key Focus Areas

You can prevent fraud if you :

1. Know Your Customers – for
prevention against customer
induced frauds
2. Know Your Employees – for
prevention of staff perpetrated
frauds

115
 Always
• Adhere to laid down processes of the bank
• Check original documents
• Update correct data eg: Field visit details
• Keep oneself updated by reading circulars
• Inform seniors if malpractice noticed
• Use Report a Fraud link on Universe
• Always Trust but verify

116
 Never
• Take commission/bribe from customer for products sold
• Share customer data to third party
• Update Fake data in Sales CRM
• Update Fake travel bills
• Open an account or process a loan without documents
• Accept Fake /Manipulated documents
• Show willingness to bend rules/processes for sales
• Pocket customer’s money

117
When do you report a fraud?
• Customer complains of fraudulent activities in his a/c
For e.g. Cheque forgery, ATM card misuse
• Fraud attempts made by the fraudster at the branch
For e.g. Fake cheque received for encashment
• Staff suspects an account holder of fraudulent activities
• Staff suspects another staff of fraudulent activities
• Staff has prevented a fraud
• Cash shortage cases above Rs 10 thousand
Norms for a sales call
Always
• Promise what you can deliver
• Present your best self to public
• Take conscious care to avoid errors
• Be polite to everyone you meet
• Turn off your cell phone during customer meetings,
• If an agitated customer is rude, be patient , smooth
out the friction with your best manners
• Be customer centric
• Be willing to offer assistance wherever required
Norms for a sales call

Never
• Indulge in signature forgery
• Indulge in mis-selling
• Deviate from processes or overlook service standards
• Compromise with confidential customer information
• Accept cash from the customer/ keep it with you
• Be late for appointments
• Treat anybody with dis-respect
Fraud Prevention Case
Studies
Case 1

Modus Operandi

• Sourcing officer not visited the Customer registered address

• No confirmation obtained from neighbours on existence of customer
• Delivered the I-Kit to customer before address visit
• Fake photograph of the residence of customer was uploaded through TAB

Investigation Findings

• A complaint received from customer that a fake account was opened and amount of Rs
6,00,000/- was fraudulently encashed from the account
• Pan card number, voter card and address of customer was used by fraudster to open the
savings account
• Fraudster also obtained a auto loan from fake account
• Sourcing officer opened the account but failed to visit the address of customer

122
Case 1 Analysis

Lapses

• Customer registered address was not visited

• Fake photograph of the residence of customer was uploaded through TAB
• Delivered the I-Kit to customer before address visit

Failure at First Check Failure at Second Check

Verification
Failure

Fake photograph of the

Customer address was
residence of customer was
not visited. uploaded through TAB.

Repercussions

Staff action against Financial loss for

erring employees the bank

123
Case 1 – How it could have been Prevented

Due diligence :
• Branch Official should personally meet and interview the customer
• Branch Official should ensure that all KYC related formalities are completed
per KYC
• Visit to communication address is mandatory
• I-Kit needs to be handed over to customer only after completion of KYC
documents and post verification of communication address
Case 2
Modus Operandi

• Sourcing officer not verified the KYC documents

• Manipulated Aadhar Card/ Voter ID accepted for account opening

• Acceptance of tampered / colour photocopy documents

Investigation Findings

• Accounts has been sourced by employee through TAB with Fake KYC documents

• Customer shown the colour photo copy to Bank official at the time of opening account and
bank official affixed the seal of OSV without seeing the original

•Accepted the tampered documents (Voter ID) for account opening by pasting photo on Voter ID
card
Case 2 Analysis
Lapses
• Accounts sourced with Fake KYC documents
• Bank official affixed the seal of OSV without seeing the original

Failure at First Check Failure at Second Check

Verification

Affixed the seal of OSV

Accepted Fake/
Failure

without seeing the

tampered documents
original

Repercussions

Staff action
Reputational loss
against erring
for the bank
employees
Case 2 – How it could have been Prevented

Due diligence :
•Sales Official should ensure the KYC documents are obtained as part of the KYC
requirement
•Images of Know Your Customer(KYC) documents (as per latest KYC circular) of all applicants
to be captured .Image to be captured from original document
•Applicant/s photograph to be captured in person only through TAB (In case of E- KYC Photo
fetched from Aadhaar is acceptable)
•Affixed the seal of OSV with seeing the original documents
Case 3
Modus Operandi

•Account opening cash was deposited by sourcing officer without

customer visit in branch

Investigation Findings

• Sourcing officer collected the account opening cash from a

customer at customer’s residence and deposited the same towards
the new bank account funding
Case 3 Analysis
Lapses
• Norms of account opening not followed
• Cash accepted from customer at his residence
Verification

Failure at First Check Failure at Second Check

Failure

Customer did not visit

Accepted Cash
branch

Repercussions

Staff action
Reputational loss
against erring
for the bank
employees
Case 3 – How it could have been Prevented

Process Adherence:
Sales officer will advise customer to visit branch for depositing cash at branch cash
counter and will ensure to be present when customer visits the branch
Case Studies : Fraud
Please refer to the participant's manual for the case studies
Thank you