PROJECT REPORT

ON
“STUDY ON RURAL BANK IN INDIA”
A Project Report On Study On Overview Of
STUDY ON madhyanchal gramin bank .
Degree of
Master of Business Administration
Submitted To
SARDAR PATEL UNIVERSITY BALAGHAT
Submitted By
TRILOK KUMAR DHURWEY
Enrollment No:-01MG20MBA1011
Faculty Guide
Miss. NAINY PARMAR

SCHOOL OF MANAGEMENT
2021
 DECLARATION

I hereby declare that this project titled “Study On Rural Bank In India” is
benafide and authentic record of work done by me under supervision of
MISS. NAINY PARMAR during academic session 2020-21.
The work presented here is not duplicated from any other source & also not
submitted earlier for any other degree/diploma to any university. I understand
that any such duplication is liable to be punished in accordance with the
university rules.
The source material, data used in this research study have been duly
acknowledged.

Signature of Student Date:-

TRILOK KUMAR DHURWEY PLACE:-BALAGHAT
 SCHOOL OF MANAGENENT
SARDAR PATEL UNIVERSITY
BALAGHAT

CERTIFICATE

This is to certify that the investigation described in this report titled “Study On

Rural Bank In India ” has been carried out by Trilok kumar dhurwey during

the summer internship project. The study was done in the organisation, Rural

bank in India. in partial fulfillment of the requirement for the degree of Master of

Business Administration of Sardar Patel University, Balaghat.

This work is the own work of the candidate, complete in all respects and is of

sufficiently high standard to warrant its submission to the said degree. The

assistance and resources used for this work are duly acknowledged.

FACULT GUIDE Miss.Nainy Parmar

HOD/DIRECTOR Mrs.Sukhda Kapre

 ACKNOWLEDGEMENT

This is my privilege to express deepest sense of gratitude and in debt sense to my

supervisor (Miss. Nainy Parmar) for her invaluable Supervision, unending

support and constant encouragement, keep interest, helpfulness and constructive
criticism. All this provided us the needed moral and Confidence to carry out this
internship.

I am honorably thankful to “Mrs. Sukhda Kapre”, School of Management

Sardar Patel University, Balaghat (M.P) For making us all facilities available.

I am also thankful to all the faculty members of School of Management, Sardar

Patel University Balaghat for their help during my project work.

I take pleasure in expressing heartiest thanks to my parent, colleagues and

classmates or their moral support and helpfulness through my project work. I am
also thankful to my other friends excluding Sardar Patel University Balaghat, for
giving me full Support in my Project Work.

Name:- Trilok kumer Dhurwey

Signature:-
 EXECUTIVE SUMMARY

MBA is a stepping-stone to the management carrier and to develop good

manager it is necessary that the theoretical must be supplemented with exposure
to the real environment. Theoretical knowledge just provides the base and it's not
sufficient to produce a good manager that's why practical knowledge is needed.

Regional Rural Bank is committed to giving you Every Opportunity to learn and
develop. As a part of that we have designed this Study in rural Banking in India
experience to help you build the skill and confidence to pursue a career with us!

This program will give you a taste for some of the challenging problems that
Rural area tackle each day!

Kick start your career with us by enrolling in the Study On Rural Bank In India.
 TABLE OF CONTENTS

Sr. No. Particulars Page No.

Preface
Acknowledgement
Executive summary

1.0 Part – 1 Banking Overview

1.1 Banking sector

1.2 Growth of bankng indusrty,

Banking system,
2.0 Part – 2 Introduction of RRB
1.1 Introduction
1.2 History
1.3 Recapitalization
1.4 Banking structure in India
1.5 Mision, Vision
1.6 Information of madhyanchal gramin
bank
3.0 Part - 3 Department of MGB
1.1 Management
1.2 Service Area
1.3 Right to Information

4.0 Part -4 Production of Bank

1.1 Service,Deposit,Loan,Rate of
Interest

5.0 Part – 5 Swot Analysis

6.0 Part – 6 Research Methodology
1.1 Research Design
1.2 Analysis
1.3 Data Collection Method v

1.4 Suggestion
1.5 Conclusion
1.6 Refference
 PART-1

Banking Overview
 Banking sector: -

A bank is a budgetary middle person and Money maker that makes Money by
loaning cash to a borrower. Loaning exercises can be performed straight
forwardly by giving credit or by implication through capital market. Capital
market are monetary market for the purchasing and offering of long haul
obligation or value supported securities. These business sectors channel the
abundance of savers to the individuals who can put it to long haul beneficial
utilize, for example, organizations or governments influencing bug-to term
speculations. Monetary controllers, for example, the Securities and Exchange
Board of India (SEBI) or
U.S. Securities and Exchange Commission (SEC), direct the capital market in
their wards to ensure financial specialists against extortion, among different
obligations. Because of the significance in the monetary framework and impact
on national economies, banks are very directed in perch of nations either by
National Government or Central Bank.
 Growth of banking industry: -

In the cutting-edge sense, began in the most recent many years of the eighteenth century.
Among the principal banks were the Bank of Hindustan, which was set up in 1770 and sold in
1829– 32; and the General Bank of India, set up in 1786 however flopped in 1791.

The biggest bank, and the most established still in presence, is the State Bank of India (S.B.I).
It began as the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of Bengal.
This was one of the three banks established by an administration government, the other two
were the Bank of Bombay in 1840 and the Bank of Madras in 1843. The three banks were
converged in 1921 to frame the Imperial Bank of India, which upon India's autonomy, turned
into the State Bank of India in 1955. For a long time, the administration banks had gone about
as semi national banks, as did their successors, until the point when the Reserve Bank of India
[5] was built up in 1935, under the Reserve Bank of India Act,1934.

In 1960, the State Banks of India was given control of eight state-related banks under the State
Bank of India (Subsidiary Banks) Act, 1959. These are presently called its partner banks. [6] In
1969 the Indian government nationalized 14 noteworthy private banks, one of the huge bank
was Bank of India. In 1980, 6 more private banks were nationalized. [8] These nationalized
banks are the lion's share of moneylenders in the Indian economy. They rule the saving money
division due to their substantial size and across the board organizes.
 Banking sector in India:

As indicated by the Reserve Bank of India (RBI), the managing an account division in India is
sound, satisfactorily capitalized and all around controlled. India is one of the main 10
economies globally, with huge potential for the managing an account segment to develop. With
the possibility to wind up the fifth biggest saving money industry on the planet by 2020 and
third biggest by 2025, as per KPMG-CIN report, India's managing an account and facial
segment is extending quickly. The new standards of Reserve Bank of India's (RBI) will give
incentives to banks to spot potential terrible credits and make remedial strides that will check
the acts of unreliable borrowers

The Indian Banking industry is at present worth's. 81 trillion (US $ 1.31 trillion) and banks are
presently using the most recent technologies like internet and cell phones to complete
exchanges and communicate with the majority.

The Indian Banking system consists of:

 1. Central Bank:

A national bank works as the pinnacle controlling establishment in the managing an account
and money related arrangement of the nation. It works as the controller of credit, broker's
bank and ado appreciates the restraining infrastructure of issuing money for the benefit of
the administration. A national bank is typically control and frequently claimed, by the
administration of a nation. The Reserve Bank of India (RBI) is such a bank inside India.

2. Schedule Commercial Bank:

It operates for profit. It accepts deposits from the public and extends loans to the households,
the firms and the government. The essential characteristics of commercial banking areas
follows:

 Acceptance of deposits from public.

 For lending or investment

 Repayable on demand or lending or investment

 Withdrawal by means of an instrument, whether a cheque or otherwise

I. Public Sector Banks:

Public Sector Banks (PSBs) are those banks where majority of stakes with the Government.
All these PSBs are listed on stock exchanges. Central Government entered banking industry
with the nationalization of Imperial Bank of India in 1955, then in 1969 14 major banks were
nationalized and in 1980 4 more bank were nationalized.

To Name a few PSBs: State Bank of India and is subsidiaries, Bank of India, Bank of
Baroda, Bhartiya Mahila Bank, Central Bank of India, etc.

The objectives behind nationalization where:

 To break the ownership and control of banks by a few business

 To prevent the concentration of wealth and economic power,

 To mobilize savings from masses from all parts of the country,

 To cater to the needs of the priority sectors

II. Private Sector Banks:

Private Sector Banks in India is made up of private and public banks. But the greater part of
stake is in the hand of private shareholders and not with the Government. Private Banks are
categorized as Old and New Private bank

Old Private banks: These are those banks which were not nationalized during the process in
1969 and 1980 due to the smaller scale or regional reach only.

Example: thalami Bank, Federal Bank, ING Vysya Bank, Karur Vysya Bank, etc.

New Private Banks: These are the banks which came into operations afire the liberalization
in 1990s. Banking Regulation were amended in 1993 so that new private banks can enter the
Indian Banking industry.

Example: ICICI Bank, AXIS Bank, HDFC Bank, Yes Bank, Development Credit

Bank, Kotak Mahindra Bank, RBL Bank, etc.

But there were certain criteria for the establishment of new private banks which are as
follow: -

 Bank should have minimum net worth of Rs 200Cr.

 Proprotors should hold an minimum of 25% of paid-up capital

 Within 3 year soft he starting of the operations, the bank should offer shares to public
and their net worth rust increase to 300Cr.

III. Foreign Banks:

With the globalization hitting the world, the concept of banking has changed substantially.
The concept of Foreign Banks has changed the prevailing banking scenario in India. Banking
is now crore of crore customer-friendly, modern technology have been implemented like
mobile banking, mobile application of banks, etc.

Example: HSBC Bank, JP Morgan Chase Bank, Deutsche bank, Standard Charter Bank,
etc.
IV. Regional Rural Banks:

Regional Rural Banks (RRBs) were started in 1970 since even afire the nationalization, there
were cultural issues related to lending to the farmers. The main purpose of RRBs is to
mobilize financial resources from rural-semi-urban areas and grants loans and advances
mostly to small and marginal farmers, agricultural labors, etc.

Example: Karnataka Vikas Gardena Bank, Maharashtra Garmin Bank, madhyanchal gramin
bank.etc.

3. Schedule Co-operative Bank:

Larger visit unions are often called cooperative banks. Like credit unions, cooperative banks
are owned by their customers and follow the cooperative principle of one person, one vote.

Unlike credit unions, however, cooperative banks are often regulated under both banking and
cooperative legislation. They provide services such as savings and loans to non-refers swell
as to refers, and some participate in the wholesale market for hands, Money and even
equities

I. Urban Co-operative Banks:

Urban Co-operative Banks are giving banking facility y to grass root persons. As Urban Co-
operative Banks are mostly working in the rural and semi-urban areas they understand the
genuine commercial needs of the local population in their area of operation Urban Co-
operative Banks help small and medium sized traders, entrepreneurs, artisans and farmers
who are deprived of banking facility as private sector and commercial banks tap only high
profile and successful entrepreneurs.

Example: Ahmedabad Mercantile Co-Op Bank, Kakapo Curreri l Coop. Bank, Burrata
Mercantile Co-operative Bank, Saraswat Co-operative Bank, etc.
 II. Rural Co-operative Banks:

The rural cooperatives are further divided into short-term and long-term structure. The short-
term cooperative banks are three tired operating in different states.

I) State Cooperative Banks-

II) Cooperative Banks-

III) Primary Agricultural Credit Societies-

The long-term structures are further divided into —

State Cooperative Agricultural and Rural Development Banks (SCARDS)-

Primary Cooperative Agricultural and Rural Development Banks (PCARDBS)

Different Banking activities:

 Retail banking

 Business banking

 Corporate banking

 Private banking

 Investment banking
Government Initiatives:

 Pradhan Mantri Jan Dham Yojna: The scheme has been started with a target to
provide 'universal access to banking facility starting with 'Basic Banking Accounts"
with overdraft facility of 15000 after six months and Rupays Debit card with in built

accident insurance cover of 11 lakh and Rupay, Kisan Card.

 Pradhan Mantri Suraksha Bema Yojna: Accident Insurance Scheme offering

accidental death and disability cover for death or disability because of an accident.

 A 112/- per annum premium will be deducted from the account holder’s savings
bank account through ‘auto debit’ facility in one installment

 In case of accidental death or full disability, payment of 2,00,000/- will be given to

the nominee and in case of partial disability payment of 1,00,000/- will be given

 Pradhan Mantri Jeevan Jyoti Bind Yojna: is a government-backed Life

insurance scheme in India. This scheme will be linked to the bank accounts opened
under the Pradha Mantri Jan Dham Yajna scheme.

 A premium of Rs 330/- per annum will be deducted from the account holder’s
savings bank account through ‘auto-debit’ facility in one installment

 In case of death of policy holder in any case, nominee will receive 2,00,000/-.

Banking is working specifically on the guidelines of the Reserve Bank of India. Out of all the
acts Negotiable Instrument Act is one of the most important act for running of the banking
activities.
 Negotiable Instrument Act

This is an act to define and lay down the law relating to Promissory Notes, Bills of
Exchange or Cheques payable either to bearer or to order.

This act operates subject to the provisions of Sections 31 and 32 of the Reserve Bank
of India Act, 1934. Section 31 of the Reserve Bank of India Act provides that no
person in India other than the RBI or as expressly authorized by this Act, the Central
Government shell draw, accept, make or issue any bill of exchange, hundi,
promissory note or engagement for the payment of Money payable to bearer on
demand.

Types of Negotiable Insurant are:

Promissory Note:

It is an instrument in writing (not being a bank-note or a currency note) containing an

unconditional undertaking, signed by the maker, to pay a certain sum of Money only
to, or to the order of, a certain person or to the bearer of the instrument.

Bill of Exchange:

A bill of exchange” is an instrument in writing containing an unconditional order,

signed by the maker, directing a certain person to pay a certain sum of Money only
to, or to the order of, a certain person or to the bearer of the instrument.
 “Cheque”: -

Is bill of exchange drawn on a specified banker and not expressed to be payable

otherwise than on demand and it includes the electronic image of a truncated cheque
and a cheque in the electronic form.

Indroduction:-
Regional Rural Banks:-
(RRBs) are government owned scheduled commercial banks of India that operate at
regional level in different states of India. These banks are under the ownership of Ministry
of Finance , Government of India. They were created to serve rural areas with basic banking
and financial services. However, RRBs also have urban branches.
The area of operation is limited to the area notified by the government of India covering,
and it covers one or more districts in the State. RRBs perform various functions such as
providing banking facilities to rural and semi-urban areas, carrying out government
operations like disbursement of wages of MGNREGA workers and distribution of pensions,
providing para-banking facilities like locker facilities, debit and credit cards, mobile
banking, internet banking, and UPI services.
History:-
Regional Rural Banks were established under the provisions of an ordinance passed on 26
September 1975 and the RRB Act 1976 to provide sufficient banking and credit facility for
agriculture and other rural sectors. As a result, five RRBs were set up on 2 October 1975 on
the recommendations of the Narsimha Committee on Rural Credit, during the tenure
of Indira Gandhi's government. The purpose was to include rural areas into the economic
mainstream since around 70% of the Indian population was rural.
Prathama Bank, with head office in Moradabad, Uttar Pradesh was the first RRB. It was
sponsored by Syndicate Bank and had an authorised capital of Rs. 5 crore.  The other four
RRBs were Gaur Gramin Bank (sponsored by UCO Bank), Gorakhpur Kshetriya Gramin
Bank (sponsored by State Bank of India), Haryana Kshetriya Gramin Bank (sponsored
by Punjab National Bank), and Jaipur-Nagpur Anchalik Gramin Bank (sponsored by UCO
Bank).
The RRBs were owned by the central government, state government, and the sponsoring
bank with 50%, 15%, and 35% shareholding respectively

Recapitalization:-
A review of the RRBs in August 2009 by the Union Finance Minister revealed that a large
number of RRBs had a low Capital to Risk weighted Assets Ratio (CRAR). A committee
was constituted in September 2009 under the chairmanship of K C Chakrabarty, the deputy
governor of the Reserve Bank of India (RBI) to analysis the financials of the RRBs and
suggest measures, including re-capitalisation to bring the CRAR of RRBs to at least 9% in a
sustainable manner by 2012. The committee submitted its report in May 2010.
The committee recommended RRBs to have a CRAR of at least 7% on 31 March 2011 and
at least 9% from 31 March 2012 onwards. The recapitalization requirement of Rs 2,200.00
crore for 40 of the 82 RRBs were to be released in two installments in 2010–11 and 2011–
12. The remaining 42 RRBs will not require any capital and will be able to maintain CRAR
of at least 9% as of 31 March 2012 and thereafter, on their own. A fund of ₹100 crore to be
set up for training and capacity building of the RRB staff.
The Government of India approved the recapitalization of the RRBs to improve their CRAR
in the following manner:
 Share of central government, that is, ₹1,100 crore will be released as per provisions
made by the Department of Expenditure in 2010-11 and 2011–12. However, release of
 the funds will be contingent on proportionate release of the state government and
sponsor bank share.
 A capacity building fund with a corpus of ₹100 crore to be set up by central government
with NABARD for training and capacity building of the RRB staff in the institution of
NABARD and other reputed institutions. The functioning of the fund will be
periodically reviewed by the central government. An action plan will be prepared by
NABARD and sent to the government for approval.
 An additional amount of ₹700 crore was set up as a contingency fund to meet the
requirement of the weak RRBs, particularly those in the north-eastern and the eastern
region

Organisation Structure:-
The organizational structure for RRB's varies from branch to branch and depends upon the
nature and size of business done by the branch. The head office of an RRB normally had
three to nine departments. The following is the decision making hierarchy of officials in a
RRB.

 Board of Directors
 Chairman & Managing Director
 General Manager
 Assistant General Manager
 Regional Manager/Chief Manager
 Senior Manager
 Manager
 Officer
 Office Assistant
 Office Attendant

List of Regional Rural Bank in India:-

There are 43 RRBs in since 1 April 2020.
Andhra Pradesh
 Andhra Pragathi Grameena Bank
 Andhra Pradesh Grameena Vikas Bank
 Chaitanya Godavari Gramin Bank
 Saptagiri Gramin Bank
Arunachal Pradesh
 Arunachal Pradesh Rural Bank
Assam
 Assam Gramin Vikash Bank
Bihar
 Dakshin Bihar Gramin Bank
 Uttar Bihar Gramin Bank
Chhattisgarh
 Chhattisgarh Rajya Gramin Bank
Gujarat
 Baroda Gujarat Gramin Bank
 Saurashtra Gramin Bank
Haryana
 Sarva Haryana Gramin Bank

Himachal Pradesh
 Himachal Pradesh Gramin Bank
Jammu and Kashmir
 J&K Grameen Bank
 Ellaquai Dehati Bank
Jharkhand
 Jharkhand Rajya Gramin Bank
Karnataka
 Karnataka Gramin Bank
 Karnataka Vikas Grameena Bank
Kerala
 Kerala Gramin Bank
Madhya Pradesh
 Madhyanchal Gramin Bank
 Madhya Pradesh Gramin Bank
Maharashtra
 Maharashtra Gramin Bank
 Vidharbha Konkan Gramin Bank
Manipur
 Manipur Rural Bank
Meghalaya
 Meghalaya Rural Bank
Mizoram
 Mizoram Rural Bank
Nagaland
 Nagaland Rural Bank

Odisha
 Odisha Gramya Bank
 Utkal Grameen Bank
Puducherry
 Puduvai Bharathiar Grama Bank
Punjab
 Punjab Gramin Bank
Rajasthan
 Baroda Rajasthan Kshetriya Gramin Bank
 Rajasthan Marudhara Gramin Bank
Tamil Nadu
 Tamil Nadu Grama Bank
Telangana
 Telangana Grameena Bank
Tripura
 Tripura Gramin Bank
Uttar Pradesh
 Aryavart Bank
 Prathama UP Gramin Bank
 Baroda UP Bank
Uttarakhand
 Uttarakhand Gramin Bank
West Bengal
 Paschim Banga Gramin Bank
 Bangiya Gramin Vikash Bank
 Uttarbanga Kshetriya Gramin Bank

mision:-
  Regional Rural Banks (RRBs) are banks formed in collaboration by the Central
Government, State Governments and Sponsoring Commercial Banks to give loans to
rural areas.
 Regional Rural Banks (RRBs) were set up as government-sponsored, regional based
rural lending institutions under the Regional Rural Banks Act, 1976. RRBs were
configured as hybrid micro banking institutions, combining the local orientation and
small-scale lending culture of the cooperatives and the business culture of
commercial banks. Their mission was to fulfill the credit needs of the relatively un-
served sections in the rural areas -small and marginal farmers, agricultural labourers
and socio-economically weaker sections.
 Shareholding pattern of RRBs among the three sponsoring entities is 50:35:15
among central government, sponsoring bank and state government respectively. 
 At present, the number of RRBs is shrinking as part of the consolidation policy for
RRBs.

vission:-
regional rural banks is to develop the rural economy by providing credit and other facilities
for agriculture and other productive activities in rural areas. They provide these facilities to
small and marginal farmers, rural artisans, agricultural laborer's and other small
entrepreneurs working in the rural areas.

The vission of RRBs can be summarized as follows:

 To provide loan for backward class public
 To opening branches of bank in rural areas.
 To save the rural poor from the moneylenders.
 To cultivate the banking habits among the rural people and mobilize savings for the
economic development of rural areas.
 To increase employment opportunities by encouraging trade and commerce in rural areas.
 To encourage entrepreneurship in rural areas.
 To cater to the needs of the backward areas which are not covered by the other efforts of
the Government?
 To develop underdeveloped regions and thereby strive to remove economic disparity
between regions.
 To increase employment opportunities by encouraging trade and commerce in rural areas.

Part -2
Information
Of
Madhyanchal Gramin Bank

Introduction

Gazette of the Government of India Extraordinary Gazette dated 01.11.2012  Madhya

Bharat Gramin Bank Head Office Sagar (M.P.) established under Regional Rural
Banks Act 1976 (23rd of 1976) by notification published by Financial Services
Division of Ministry of Finance in Section 3 Sub Section (ii) (Sponsor Bank of India)
State Bank, Rewa-Sidhi Gramin Bank Head Office Rewa (M.P.) (Sponsor Bank Union
Bank of India) and Sharda Gramin Bank Head Office Satna (M.P.) (Sponsor Bank
Allahabad Bank) by amalgamating Madhyanchal Rural Bank has been established.

Similarly, Madhya Bharat Gramin Bank was established on 30.06.2006 by

amalgamating three rural banks sponsored by State Bank of India namely Damoh-
Panna-Sagar Kshetriya Gramin Bank, Shivpuri-Guna Kshetriya Gramin Bank and
Bundelkhand Gramin Bank. .

The head office of Madhyanchal Gramin Bank is located at Sagar (M.P.).  Madhyanchal
Gramin Bank is sponsored by State Bank of India. The share of Government of India is
50 percent in the capital of the bank, 35 percent of the sponsor bank State Bank of
India and 15 percent of the Government of Madhya Pradesh.

Thirteen districts of Madhya Pradesh namely Damoh, Sagar, Shivpuri, Guna,

Ashoknagar, Tikamgarh, Chhatarpur, Panna, Satna, Rewa, Sidhi Singrauli and Niwari
are the work areas of Madhyanchal Gramin Bank.

PART -3

Department
of
Madhyanchal Gramin Bank
 MANAGEMENT :-
Administrative Management :- The management of the bank is three tier.
a. Board of directors :
There are 9 directors members including the chairman of the board of directors.

 Chairman (Higher Management Category 6 Officer of State Bank of India)

 Two representatives nominated by State Bank of India (sponsor bank).
 A representative nominated by the Reserve Bank of India.
 One representative nominated by the National Bank for Agriculture and Rural
Development.
 Two representatives nominated by the Government of Madhya Pradesh.
 Two non-official representatives nominated by the Government of India.

Mr. Abdhesh Chandra Saxena

director

Mr. Mukesh Kumar Shukla

Director (Commissioner, Sagar Division)
 Shri SK Gupta
Director (Joint Director, DIF)

Mr. Vikram Goel

Director (Deputy General Manager, RBI)

Mr. Qamar Javed

Director (Deputy General Manager, NABARD)

Shri Ravindra R Patil

Director (Deputy General Manager, SBI)

Mr. Sanjay Tiwari

Director (Deputy General Manager, SBI)

B. Administrative set up: Chief Executive Officer, Chairman of the Bank

a. The Chief Executive Officer and four General Managers who are Senior
Management Group 5 officers of State Bank of India, come under the Upper
Management Group of the Bank.

 General Manager (Administration)

 General Manager (Operations)
 General Manager (IT)
 Chief Vigilance Officer

Mr. Ambika is a happy hero

General Manager (Administration)

Mr. Satish Phulwani

General Manager (Operations)

Mr. Shyam Singh

General Manager (IT)

Mr. Rajakumar K.L.

General Manager (Vigilance)
 For administrative management, there is a regional office in two districts or maximum
60 branches. The head of the office is the senior management class 4 officer of
Madhyanchal Gramin Bank .

 Regional Office Damoh (Damoh & Sagar)

 Regional Office Shivpuri (Shivpuri & Guna)
 Regional Office Tikamgarh (Tikamgarh, Niwari and Ashoknagar)
 Regional Office Chhatarpur (Chhatarpur and Panna)
 Regional Office Satna (Satna)
 Regional Office Rewa (Rewa)
 Regional Office Sidhi (Sidhi & Singrauli )

SERVICE AREA:-
Madhyanchal Gramin Bank is functioning with its total 454 branches in 13 districts of
MP including head office Sagar and 7 regional offices.

 Regional Office Damoh (Damoh & Sagar)

 Regional Office Shivpuri (Shivpuri & Guna)
 Regional Office Tikamgarh (Tikamgarh, Niwari and Ashoknagar)
 Regional Office Chhatarpur (Chhatarpur and Panna)
 Regional Office Satna (Satna)
 Regional Office Rewa (Rewa)
 Regional Office Sidhi (Sidhi & Singrauli)

CORPORATE CONTROL :-
Extraordinary part of the Gazette of the Government of India on 01.11.2012.  Madhya
Bharat Gramin Bank Head Office Sagar (M.P.) established under Regional Rural
Banks Act 1976 (23rd of 1976) by notification published by Financial Services
Division of Ministry of Finance in Section 3 Sub Section (ii) (Sponsor Bank of India)
State Bank, Rewa-Sidhi Gramin Bank Head Office Rewa (M.P.) (Sponsor Bank Union
Bank of India) and Sharda Gramin Bank Head Office Satna (M.P.) (Sponsor Bank
Allahabad Bank) by amalgamating Madhyanchal Rural Bank has been established.
Madhyanchal Gramin Bank is sponsored by State Bank of India.  The share of
Government of India is 50 percent in the capital of the bank, 35 percent of the sponsor
bank State Bank of India and 15 percent of the Government of Madhya Pradesh.
Privacy statement:-

Madhyanchal Gramin Bank came into existence through amalgamation of the

following Regional Rural Banks operating in Madhya Pradesh on 01.11.2012.
1. Madhya Bharat Gramin Bank Sponsored by State Bank of India
2. Sharda Gramin Bank Sponsored by Allahabad Bank
3. Rewa Sidhi Gramin Bank Sponsored by Union Bank of India
To fall in line with recognized International Practice and for the information of
customers and others who visit the Bank's website we believe that it is necessary
to post a privacy statement
basic philosophy is that, the information shared with the Bank should be treated as
private. We also desire to say explicitly that adequate precautions have been taken to
protect information relating to customers and their dealings with the Bank from the
mischievous and the fraudsters.
Customer confidentiality and privacy are of utmost concern to MGB. Our employees
treat the information concerning customers’ accounts in the same responsible and
confidential way that we want our own financial affairs treated.
 
1. Recognition of your expectation of privacy”
We recognize that our customers expect privacy and security for their personal and
financial affairs. We understand that, by selecting us for their banking needs, they have
entrusted us to safeguard their personal financial information. We want them to be
informed of our commitment to protect the privacy of their personal financial
information with the following privacy principles and practices.
 
2. What personally identifiable information is collected from you ”
We collect information from customer regarding name, addresses, email addresses,
passport number, Income, PAN, details of nominees, etc.
 
3.Cookies”
A cookie is a data file that certain Web sites write to customer’s computer’s hard drive
when he/she visits such sites. A cookie file can contain information such as a user
identification code that the site uses to track the pages customer has visited and use the
information commercially. We do not use cookies on our web site.
  
4. How we use, collect, and retain customer information”
On our site we collect, retain, and use information about customer only when we
reasonably believe that it will help administer our business or provide products,
services, and other opportunities to them. We collect and retain information about
them only for specific business purposes.
 
5. We use information to”
 Open and administer customer accounts and to protect his/her records and funds.
 Comply with all applicable laws and regulations help us design or improve our
products and services for customer benefit.
 Understand customer financial needs so that we can provide his/her with quality
products and superior services.
 To comply with laws, guidelines and regulations that governs the financial services in
the country.
 To quote examples we need to obtain Passport number for NRI account & PAN
for deposit accounts in respect of resident customers.
 
6. How we keep customer information accurate”
It is in customer interest, and it is our objective, for us to have accurate, current, and
complete information concerning them and their accounts. We have strict procedures
that our employees abide by to meet this objective. While some procedures are
required by Central, State laws or RBI regulations, we have implemented additional
procedures to maintain accurate, current, and complete financial information, including
processes to update information and remove outdated information. If customer believes
that we have incorrect information about them or their accounts, please email us
through the feedback mechanism provided on the website or modify the profile
information on the site as permissible. We will correct any erroneous information as
quickly as possible.
 
7. How we limit access to customer information by our employees :
We have procedures that limit access to personally identifiable information to those
employees with a business reason for knowing such information about you. We
educate our employees on their responsibility to protect the confidentiality of customer
information, and hold them accountable if they violate this privacy policy.
 
8. Our security procedures to protect customer information”
We follow best security practices to help prevent unauthorized access to confidential
information about you.
 
 9. How we restrict the disclosure of customer information ”
MGB does not release customer information except as directed by law or as per your
mandate. We do not share specific information about customer accounts or other
personally identifiable data with non-affiliated third parties for their independent use
unless:
 The information is provided to help complete a transaction initiated by you;
 You request or authorize it;
 The disclosure is required by/or directed by law; or
 Customer has been informed about the possibility of such disclosure for marketing or
similar purposes through a prior communication and have been given the opportunity
to decline
 
10. By formulating and disclosing our privacy policy to you, we want you to
understand our commitment to personal privacy.
 A potential customer who inquires about our products and services or who would like a
copy of our privacy policy
 A customer who has established a relationship with us
 A potential customer who has applied for a loan
 A visitor to MGB web site
 
11. If you have any questions or concerns about this privacy policy, please send an e-
mail to us at or write to us at General Manager (IT), Madhyanchal Gramin Bank, Head
Office,
Poddar Colony, Tili Road, Sagar, Madhya Pradesh - 470001, India. Email:
gmit@mgbank.co.in
 
12. Internet privacy on MGB's web site for each visitor to MGB's web site (
http://www.mgbank.co.in/),we automatically recognize the following visitor
information:
 A visitor's Internet Service Provider (for example, AOL or AT & T WorldNet),
but not your specific e-mail address. For example, if your e-mail address is, only the
'rediffmail.com' part of the address is recognized
 Aggregate visitor information on pages which customers visit.
 
13. Other information about our web site”
 Children visiting MGB's web site: We are confident that parents will not judge any of
the information provided by MGB as objectionable for viewing by their children
 Customers using MGB's Internet Banking Service: For customers using our MGB
Internet Banking, all visitor information is collected along with any information that
you volunteer as a customer while using MGB's web site
 Links to, or from, MGB's web site: MGB is not responsible for information practices
employed by web sites linked with our web site. Generally, links to non- MGB web
 sites are provided solely as pointers to information on topics that may be useful to
users of MGB's web site
 Encrypted information: Information provided by you on MGB's web site is encrypted
or scrambled in order to secure information
 
14. Privacy policy is subject to change periodically”

Right to information:-
R I GHT TO IN FOR MA TI ON AC T- 2005

List of Public Information Officers under Right to Information Act 2005:

N
o at branch level Regional office Head Office
.
Assis
tant
Offic
er
Assistant Central Public Deputy Manager
1 branch manager Vigil
Information Officer Personnel
ance
Depa
rtme
nt
Manager Administration
Central Public
2 (Concerned Regional manager administration manager vigilance
Information Officer
Office)
General Manager
3 appellate authority Regional Manager Regional Manager
(Administration)
Note :- Get the address of all Branches, Regional Offices, and Head Offices from
Branches section.
 PART -4
PRODUCTION OF BANK

SERVICES :-
Internet Banking
MGB Internet Banking is a view only online Banking Facility that can be availed by
our customer having an MGB Bank account. To register himself, he will have to give
an application form to his home branch requesting for an Internet Banking facility and
then he can access Internet Banking from the Website.

MGB Internet Banking Facility

 You can search your saving or current account.

 Can download all linked account statements.
  

Deposit:-

 current account
 saving account
 Fixed deposit
 recurring deposit
 Fixed Deposit Tax Saver, etc.

Loan:

 Kisan credit card

 Kisan Gold Card
 agricultural activities loan
 Agriculture Allied Activities Loan
 rural storage house construction
 Rural cold house construction loan
 mini transport driver
 Loan Against Warehouse Receipts
 small scale card  
 Artisan Card
 SME Card
 mortgage loan
 personal loan
 car loan
 building loan
 rent loan scheme
 Loans against various securities etc.

Agri and Non Agri Banking:

 Grameen Pay Order (Draft)

 NEFT/RTGS
 SBI Life Insurance
 lockers
 Bank guarantee
 Kiosk Banking
 e-commerce
 Rupee Debit ATM Card / Rupee KCC ATM Card
 imps
 Atal Pension Yojana
 Prime Minister Jeevan Jyoti Bima Yojana
 Pradhan Mantri Suraksha Bima Yojana
 
Rate of Interest
 
Interest Rates:
Revision of Effective Interest Rates of Domestic Fixed Deposits
Take reference of Bank's circular number scheme /2020.21/05 dated 22.09.2020
under the subject. The interest rates on domestic fixed deposits have been changed
by State Bank of India on 10.09.2020. Accordingly, the following are the
approved interest rates in our bank.

Effective Interest Rates for Domestic Fixed Deposits (%)

No. Period Effective rates for Effective rates for senior citizens
general public
current rates revised current rates revised rates
rates

1- 07 days to 45 days 2.90 2.90 3 3.40

.
4
0
2- 46 days to 179 days 3.90 3.90 4.40 4.40
3- 180 days to 210 days 4.40 4.40 4.90 4.90
4- 211 days or more but 4.40 4.40 4.90 4.90
less than 01 year
5- 01 year or more but less 5.10 4.90 5.60 5.40
than 02 years
6- 02 years or more but 5.10 5.10 5.60 5.60
less than 03 years
7- 03 years or more but 5.30 5.30 5.80 5.80
 less than 05 years
8- 05 years or more but up 5.40 5.40 5.90 5.90
to 10 years
   

The interest rates under the Tax Saving Scheme will be as per the interest rates
given in the above table for the same period.
The revised interest rates will be effective from 23.09.2020 for new/renewed
fixed deposits.
Interest will be paid at the rate of 1.00% per annum additional to the effective
rates for general public on new/renewed fixed deposits received from the
staff/retired staff of the bank and the retired staff (whose age is more than 60
years) will be paid their fixed deposits. Staff rate 1.00% along with senior citizen
rate 0.50% benefit will also be given on deposits.
The Branch Manager or any other officer does not have the right to reduce penal
interest or give any discount on premature withdrawal. In case of premature
withdrawal, the effective rate of interest will be 1.00% less than the interest rate
fixed for the period the amount has been deposited with the bank.
 

Change in Effective Interest Rates of Savings Accounts

Take reference of the bank's circular number scheme /2020.21/02 dated
22.05.2020 regarding the above subject. On the basis of the proposal approved by
the Board of Directors, the effective interest rates on savings accounts have been
changed as follows. The new interest rates will be effective from 01.08.2020.

N description current d revised rate

o. rates e
s
c
ri
p
ti
o
n

  Rupee. Up to 25.00 lakhs 2.75 % Rupee. up to 1.00 lakh 2.70 % (P.A.)

(P.A.)

  Rupee. Above 25.00 lakhs 2.75 % Rupee. Above 1.00 lakh 2.70 % (P.A.)

 (P.A.)

Interest at an additional rate of 1.0% p.a. from the effective rates for general
public on receipt of declaration form (reference head office circular no.
Personnel/15-16/16 dated 01.09.2015) in existing/new savings account of bank's
staff/retired staff. will be paid.

Advances Section - Determination of Interest Rates:

w.e.f. 01.11.2012
In the meeting of the Board of Directors dated 01.11.2012, for the purpose of
rationalizing the effective interest rates, increasing the bank business and healthy
competition from other banks, the interest rates for the advance section have been
fixed as follows:-

No. Item With effect from 01.11.2012 Rate

of
intere
st
A. Agriculture Segment

1. agricultural crop loan Agriculture Short Term *Direct & Indirect

Loans up to Rs.25.00 Lakh –
(i) Rs. up to 3.00 lakh 11.75

(ii) Rs. 3.00 lac to 5.00 lac 12.75

(iii) Rs. 5.00 lac to 25.00 lac 13.75

(iv) Rs. Above 25.00 lakhs 14.50

Note - * Crop Loan / Production Loan - Under

the interest subvention scheme of Government
of India Rs. Concessional interest rate of 7%
will be charged as before for regular loan
accounts up to Rs.3.00 lakh.
2. agricultural term loan Agricultural Term Loan Direct & Indirect Loan
up to Rs.25.00 Lakh -
 Rs. up to 3.00 lakh 11.75

Rs. 3.00 lac to 5.00 lac 12.75

Rs. 5.00 lac to 25.00 lac 13.75

Rs. Above 25.00 lakhs 14.50

3. Loan to farmers 10.50

against warehouse
receipt
4. Rural Godown / Cold 1.Rural Godown/Cold Storage (Agriculture 10.50
Storage (Agriculture Term Loan) Food and Agrobase Processing
Term Loan) Unit (Plant/Machinery)
2.AgricultureInfrastructureFund scheme

(i) Loan amount Rs. up to 2.00 crores 9.00

(ii) Loan amount Rs. 2.00 crore plus 10.50

B. S.M. SME Segment

1. Self Employed Credit Artisan Credit Card / Self Employed Credit

Card / General Card / Card / General Credit Card
Artisan Credit Card /
(i) Rs. up to 50000 12.25

(ii) Rs. above 50000 10.50

2. CC/Term Loan SMEs: Small Entrepreneurs / Small

Businessmen / Service Sector / LUCC /
Business Saral Yojana etc.
a. Working capital and loans up to 03 years
tenure
1-CGTSME Cubber Available 11.00

2- CGTSME grave not available 11.00

B. Term Loan (For Tenure more than 03 11.00

Years)
3. Equitable Mortgage Loan Term loan 10.00
(against immovable
property)
4. Loan Against Building Term loan 13.50
Rent (RENT PLUS)
5. madhyanchal simple 1. Madhyanchal Saral Business Working 10.00
business plan Capital (For Cash Credit Limit)
2. Madhyanchal Saral Vyapar (For Term
Loan)
(i) In case of 100% liquid security 10.00

(ii) Others 11.00

6. Group :- NRLM Up to Rs.2.00 Lakh 12.00

Individual / Group
Rupee. 2.00 lakh plus 12.00

C. Personal Segment

1. Car, Building & Consumer Items,Vehicle Loan,Four Wheeler

Education Loan Loan
a. car loan

(i) New Car 8.75

(ii) For existing regular borrowers of the 8.25
bank under other schemes and for
government salaried employees
(iii) Green Car 8.25
(iv) Used Car 13.50
B. building loan

men's section 8.55

women's current 8.50

s. Education Loan Vocational Education

and Training Loan
Rs. up to 4.00 lakhs 13.25

Rs. 4.00 to 7.50 lakhs 13.00

Rs. Above 7.50 Lakh 11.75

 2. gold loan Intermediate SME Gold Loan Scheme 10.00

Personal Gold Loan / Agriculture Gold 10.00

Loan
3. Other Consumption / Personal / Consumer Loan / (For Salaried
Personal Loan Service Commissioners)
a. Other Consumption Loans/Personal 13.75
Loans Where (Check Off Available)
B. Other than check off 14.75

4. NSC/KVP/LIC/SBI Loan Against Security of NSC/KVP/RBI 12.25

LIFE/RBI BOND Relief bond/Loan on Surrender Value of
LIC/SBI LIFE and SBI Magnum -
 

Above interest rates :-

1.Applicable on loans sanctioned with effect from 01.11.2012.
2. New interest rates will be applicable for working capital loans given before
01.11.2012 also.
3. The old interest rates on term loans sanctioned/disbursed prior to 01.11.2012
will continue to remain unchanged.
4. Term loans which have been sanctioned before 01.11.2012 at floating rate of
interest.
 PART – 5

SWOT ANALSIS
 Strength
 Competitive Environment.
 Mobile Banking.
 E- Banking.

Weaknesses
 Monetary and credit policy.
 Lack of customer care service.
 Recovery of loan.

Opportunities
 Undeveloped rural Area.
 More people are getting familiarize with the banking.
 Potentiality of market.

Threats
 Traditional mentality of employees
 Macro economic policy non performing assets.
 Foreign investment policy

KEY POINT

SWOT Analysis is a simple but powerful framework for analyzing company's Strengths
and Weaknesses, and the Opportunities and Threats you face. This helps you to focus on
your strengths, minimize threats, and take the greatest possible advantage of opportunities
available to you.
 PART -6
RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY

o TYPE:-DESCRIPTIVE

o Follow questionnaire method

SAMPLE SIZE AND METHOD OF SELECTING SAMPLE

o I chose a sample size of 100 respondents consisting of based on judgment

sampling

o All respondents were the customers of Rural Bank. The

method was simple random sampling

DATA SOURCE
o For this project both primary and secondary data were valuable sources of
information

Primary data: - such data collected first hand, either by the researcher or by someone
else, especially for the study is known as primary data.

Secondary data:- any data, which have been gathered earlier for some other purpose,
are secondary data in the hand of researcher.
Overall Rating
 4.8
see rating trend
Category Ratings
4.3
Work Satisfaction
4.0
Job Security
3.8
Work-Life Balance
3.6
Company Culture
3.3
Career Growth
3.0
Skill Development
2.7
Salary & Benefits
 SUGGESTION

► The bank can introduce advance technology for banking and should give
attention to Manpower time to time.

► The bank can promote confidence and commitment among the staff members, to
address the expectations of the customers efficiently and handle technology
banking with simplicity.

► The bank can take steps to forecast the changing financial need of customer of
different type of group and banking accordingly.

► The bank can identify the reason of few unsatisfied group of customer and should
take steps to eliminate their problems and grievances.

► The bank can put together all it hard work to bring more responsiveness and awaren
 CONCLUSION

After having all the required information for preparing my report, I have tried to

analyze each and every function of the MGB. During my report all the staff

member of the MGB had well co-operate . And also I have found that the there is
a very good level of commitment in all the staff members. During my report I have
try to cover each functional area related to the bank and specially loan department.

After having clear idea about everything In the bank, I can conclude that the

MGB is one of the leading firm in the co-operative and commercial sector, and
with advanced technologies and educated staff to try to positioning in the banking

market. But than also due to such weaknesses of co-operative sector MGB bank is
also suffering from such limits.

So, at last we can conclude that the MGB is being leader in the market &
bank is getting great goodwill in the market and also great goodwill of the other
director helps to the bank in creating good image in the field of the bank.
 Bibliography
books Reffered:-
Philip kotter(eight Edition) marketing management
K.Natrajan,E. Gordon (11th Edition)Financial market and services
Websites Reffered
www.wikipedia.com
www.MGB.com
www.google.com
Reports/Articles Reffered
annual Report of madhyanchal Gramin Bank 2020-2021