eCircular

Department: P&HRD
Sl.No.: 1150/2022 - 23
Circular No.: CDO/P&HRD-IR/62/2022 - 23
Date: Tue 10 Jan 2023

The Chief General Manager,

State Bank of India,
Local Head Office,
All Circles/CCG/CAG/SARG etc.

Madam/Dear Sir,

STAFF: MISCELLANEOUS
HOUSING LOAN SCHEMES FOR STAFF
CASES WHERE EMPLOYEES ARE DECEASED
1) WRITE-OFF OF IHL WHERE ACCOUNT IS NPA
2) WAIVER OF OUTSTANDING IN IHL WHERE ACCOUNT IS STANDARD
ONE TIME GOODWILL PACKAGE FOR BEREAVED FAMILY

Home Loans are granted to employees of the Bank for acquiring suitable housing
accommodation for them and their families, under Individual Housing Loan Scheme
(IHLS). The employees can also avail Housing Loan on Commercial terms (like Public)
to meet the shortfall in project cost.

2. In this connection, the Bank has obtained a Group Term Insurance Policy covering
outstanding in home loan accounts of employees opened under Individual Housing
Loan Scheme (IHLS). The annual premium on the policy is being paid by the Bank.
Initially, the Group Term Insurance Policy was applicable to the outstanding in Staff
Home Loan accounts which were sanctioned on or after 01.10.2014. Subsequently,
from 01/07/2019 onwards, all Staff Housing Loan accounts under IHLS, irrespective of
the date of sanction, have been covered under Group Term Insurance Policy and in
case of death of an employee, outstanding in his/her IHL account is settled by raising
claim with the Insurance Company (at present SBI Life).

3. However, there are cases where Staff Housing Loan accounts are NPA due to death
of employees where repayment is stopped and also cases of Staff Housing accounts
where employees are deceased, but accounts are standard as their dependents are
repaying the dues from their own sources (like family pension etc.), due to non-
coverage of insurance and/or claim from Insurance company is not received.

4. With a view to providing one time relief to the bereaved family, post death of their
earning member and to secure house of their own without loan repayment burden, the
Executive Committee of the Central Board (ECCB) in its meeting dated 06/12/2022 has
approved a Goodwill Package from the Bank, as under:
 i. In case of deceased employee where Staff Housing Loan account has turned
NPA, the outstanding in Staff Housing Loan accounts (including unrealized
interest) will be written-off/adjusted.
ii. In case of deceased employee where Staff Housing Loan account is
STANDARD, the outstanding in Staff Housing Loan accounts will be
waived/adjusted.
5. This goodwill package will, however, be subject to the terms and conditions
mentioned in the ANNEXURE-A.
6. SOP for undertaking the exercise for write-off/waiver of the accounts involved is
placed as ANNEXURE-B
7. DMD (HR) & CDO has been authorised to issue operational guidelines/clarifications
in the matter, as necessary

8. Please bring the contents of this circular to the notice of all concerned.

Yours faithfully,

(Om Prakash Mishra)

Dy. Managing Director (HR) &
Corporate Development Officer
 ANNEXURE-A

TERMS AND CONDITIONS

 This goodwill package is a one-time measure without forming any

precedent whatsoever.

 This goodwill package will be applicable to the loan accounts (NPA and
Standard) with the outstanding as on 30.09.2022 plus accrued interest if any.

 This goodwill package will not be applicable to the loan accounts (NPA and
Standard) which are already closed/settled.

 This goodwill package is meant to have a roof over the head of bereaved
family of the deceased employee, as such it will be applicable to Housing
Loan availed by the deceased employee for the first house only. However, If
the employee has availed subsequent IHL after disposing of his existing house to
have a bigger house/house in better location and at present that is only
accommodation for the bereaved family, the said housing loan is also eligible for
write-off/waiver.

 This goodwill package will cover Staff Housing Loan accounts under both IHL
and Staff Housing Loan on commercial terms where employee is deceased (IHL
includes IHL for ST/SC/OBC under separate schemes for purchase of property in
notified /CNT areas).

 The Circle must ensure the genuineness of eligible cases and the
insurance claim to be thoroughly verified before write-off/waiver of the
eligible staff housing loans.

 If the Staff Housing Loan is eligible to be covered under Group Term Insurance
as per sanctioned date and the date of death of the employee, the Circle must
enforce the Insurance claim and settle it with Insurance company without delay.
Such loans are not eligible for write-off/waiver.

 Staff Housing Loan cases if any, where fraud is detected/suspected are not
eligible.
 ANNEXURE-B

STANDARD OPERATING PROCEDURE (SOP)

 Granular data on eligible cases as on 30.09.2022 will be shared by REHBU with

the Circles.

 Processing of eligible IHL cases and accounting process for write-off/waiver will
be as per the extant guidelines of the Bank on write-off of loan accounts.

 As such, wherever provision is held, the same will be utilized for the write-off and
where adequate provision is not available, the same will be created for effecting
the write-off.

 The delegation of powers for write-off/waiver as the case may be, will be as
under without reference to the amount involved.

 Sanctioning Authority for Waiver/Write-off as the case may be, of eligible

cases will be the General Manager of respective Network in which branch
falls.

 All such sanctioned cases will be controlled by Chief General Manager of

respective Circle.