STUDY MATERIAL FOR

PRE- PROMOTIONAL
TRAINING
(FOR SC/ST/OBC
CANDIDATES) FOR
PROMTION from JMGS -
I to MMGS II

Contents prepared by SBILD Jaipur & SBILD Agra (Compiled by

SBFI, Indore)

1
 Foreword

The promotion tests to be held for promotions to various cadres in the year 2022-
23 are fast approaching. Our organisation has always been in the forefront of
updating the skills, knowledge gaps etc. of our employees through various training
programs and periodicals. A guide for promotion test has been prepared keeping
in view various areas covered in such tests. The book covers information relevant
from the point of view of Bank’s promotional tests and will assist the aspirants in
preparing well and acquiring requisite knowledge to get through the tests.

The contents incorporated in the handbook are based on the current developments
as per the circulars/ instructions/ guidelines issued by our organisation as well as
other respective departments from time to time. However, the aspirants are
requested to refer latest Govt. Guidelines and notifications/circulars issued by
RBI/SBI.

I place on record the efforts taken by teams of 2 SBILDs, Jaipur and Agra to make
the contents relevant, authentic and upto date after rigorous analysis.

Wishing the aspirants all the very best for their upcoming examinations!!

(Ashok Kumar)

DGM & Director,

SBFI,Chetana,Indore

2
 TABLE OF CONTENTS

Sr. No. Topic page

1 Promotion Guidelines 5
2 My SBI 6
3 HR issues 14
4 General Awareness, Current affairs 25
5 Deposit Products (SB, CA, TDR/STDR all variants) (SME and PER) 42
6 Asset Product – Home Loan all variants and other RE Loans 112
7 Asset Product – Auto Loan 152
8 Asset Product – Gold Loan 166
9 Asset Product – Personal Loan 171
10 Asset Product – Pension Loan 184
11 Asset Product – Education Loan 192
12 Asset Product- Pre-Approved loans & Other Personal loans 210
13 Asset Product- Agriculture Loan and Overview on Agri business 224
Asset Product- SME all products and Overview on SME Business,
14 270
CGTMSE, CGFMU, CERSAI
Digital Banking - IT Channels (Alternate Channels), Payment
Solutions, Transaction products etc. and questions on other new
15 290
initiatives, Knowledge of CBS, IT related security concerns (Digital
Banking), ATM
16 Cross Selling Products and Financial Inclusion 368
General Banking- Cash Department Procedure - Note Refund Rule,
17 Detection & Impounding of counterfeit note, Cash Handling Process 400
Chest Branch & Non-Chest Branch.
18 General Banking- KYC, AML-CFT Guideline, FATCA, CRS 417
19 FOREX, IB, Treasury and NRI Business 456
20 Pre sanction processes 488
21 Post sanction processes 517
22 Bank’s Loan Policy, 545
23 Chairman Policy 562
24 Union Budget 569

3
25 Priority Sector Lending 574
26 Banking Laws and Acts 589
27 Government Business, Govt Small Saving Schemes, 604
28 Customer Service and Grievance Redressal 620
Nomination and Deceased account settlement including (Deposit and
29 643
advance both)
30 Safe custody and Locker facility 654
31 NPA Management 660
32 Tax Deducted at Source (TDS) 692
33 English Comprehension 702
39 SBI – Financial Results- Highlights 736
40 MCQs 743

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Promotion Guidelines

PROMOTION FROM JMGS-I TO MMGS-II

Eligibility Criteria
Service Eligibility as MERIT CHANNEL
1
JMGS-I (As on 01.04.2023) GENERAL CADRE SPECIALIST CADRE
Service in the existing
a 3 years 6 months 4 Years
grade
b Residual Service 2 years 2 years
Minimum CDS Grade A in Minimum CDS Grade A in
c AARF each during the best three each during the best four
out of the last four years out of the last four years
d No. of Chances 6* 6**
Mandatory Assignment None None
e
requirement
Should have acquired role-
Should have acquired role-based
based certification & e
certification & e lessons/and other
lessons/and other external
external certifications as per e Cir
f Mandatory Learning certifications as per e Cir no.
no. CDO/STU-MNDTRY
CDO/STU-MNDTRY
LEAR/3/2022-23 Date: Fri 1 Jul
LEAR/3/2022-23 Date: Fri 1 Jul
2022
2022
2 Minimum Qualifying Score
Written Test
a 40% 40%

Interview
b No Interview No Interview

3 Weightage for
a Promotion Appraisal Form 40% 40%
b Written Test 60% 60%
c Interview NA NA
3 Others
Zone of Selection (times the
a 3 3
number of vacancies)
* The chances availed from the promotion year 2014-15 and onwards would be counted for determining
the number of chances availed.
** The chances availed from the promotion year 2007-08 and onwards would be counted for determin-
ing the number of chances availed.
5
`

My SBI

The origin of the State Bank of India goes back to the first decade of the nineteenth century with the
establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received
its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the
first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15
April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. The presidency Banks
of Bengal, Bombay and Madras with their 70 branches were merged in 1921 to form the Imperial Bank
of India. The triad had been transformed into a monolith and a giant among Indian commercial banks
had emerged. The new bank took on the triple role of a commercial bank, a banker's bank and a banker
to the Government. Sh Badri Das Goenka was the first Indian Chairman of Imperial bank of India. The
establishment of the Reserve Bank of India as the central bank of the country in 1935 ended the quasi-
central banking role of the Imperial Bank. The latter ceased to be bankers to the Government of India
and instead became agent of the Reserve Bank for the transaction of government business at centres
at which the central bank was not established. When India attained freedom, the Imperial Bank had a
capital base (including reserves) of Rs.11.85 crores, deposits and advances of Rs.275.14 crores and
Rs.72.94 crores respectively and a network of 172 branches and more than 200 sub offices extending
all over the country.

To serve the economy in general and the rural sector in particular, the All-India Rural Credit Survey
Committee recommended the creation of a state-partnered and state-sponsored bank by taking over the
Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. An act
was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1
July 1955. More than a quarter of the resources of the Indian banking system thus passed under the
direct control of the State. Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959,
enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries
(later named Associates). Dr John Mathai was the 1st Chairman of State Bank of India. The State Bank
of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches,
sub offices and three Local Head Offices inherited from the Imperial Bank.
Headquartered in Mumbai, SBI provides a wide range of products and services to individuals,
commercial enterprises, large corporate, public bodies and institutional customers through its various
branches and outlets, joint ventures, subsidiaries and associate companies. It has always been in the
forefront to embrace changes without losing sight of its values such as Transparency, Sustainability,
Social Responsibility and Customer Service.
6
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Central Board of Directors as on 01.11.2022

No Name Designation Under Section of SBI Act 1955

1. Shri Dinesh Khara Chairman 19(a)

2. Shri C.S. Setty Managing Director 19 (b)

3. Shri Swaminathan J. Managing Director 19 (b)

4. Shri Ashwini Kumar Tewari Managing Director 19 (b)

5. Shri Alok Kumar Choudhary Managing Director 19 (b)

6. Shri B. Venugopal Director 19 (c)

7. Dr Ganesh Natarajan Director 19 (c)

8. CA Shri Ketan S. Vikamsey Director 19 (c)

9. Shri Mrugank M Paranjape Director 19 (c)

10. CA Shri Sanjeev Maheshwari Director 19 (d)

11. CA Shri Prafulla P Chhajed Director 19 (d)

12. Shri Vivek Joshi Director 19 (e)

13. Shri Anil Kumar Sharma Director 19 (f)

List of Top Executives as on 01.11.2022

S. No. NAME DESIGNATION

1 Shri. DINESH KHARA CHAIRMAN

2 Shri. PRAKASH CHANDRA KANDPAL DMD (RETAIL-P & RE) CC MUMBAI

DMD, COMMERCIAL CLIENTS
3 Shri. RADHAKRISHNAN V.S
GROUP, CC, MUMBAI
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4 Shri. SALEE S. DMD & CCO, CC MUMBAI

RANA ASHUTOSH KUMAR DMD (TRANSACTION BANKING &
5 Shri.
SINGH NEW INITIATIVES) CC MUMBAI
6 Shri. PRABODH PARIKH ON DEP: EVP, NaBFID MUMBAI

7 Shri. SUREDDI SRINIVASA RAO DMD & CRO, CC, MUMBAI

MD & CEO, SBI FUNDS
8 Shri. VINAY M. TONSE
MANAGEMENT PVT LTD. MUMBAI
9 Shri. SALONI NARAYAN DMD (FINANCE), CC, MUMBAI
MD & CEO, SBI LIFE INSURANCE
10 Shri. MAHESH KUMAR SHARMA
CO LTD. MUMBAI
11 Shri. SANJAY D. NAIK DMD, IBG, CC, MUMBAI

12 Shri. SUBRATA BISWAS DMD SARG CC MUMBAI

DMD (INTERNAL AUDIT) CC,
13 Shri. VISWANATHAN RAMANATHAN
HYDERABAD.
MD & CEO, SBI CARDS &
14 Shri. AMARA RAMAMOHAN RAO PAYMENTS SERVICES LTD,
GURGOAN
15 Shri. POLUDASU KISHORE KUMAR POLUDASU KISHORE KUMAR

16 Shri. OM PRAKASH MISHRA DMD (HR) & CDO, CC, MUMBAI

DMD, CORPORATE ACCOUNT
RAGHAVENDRA RAO GROUP, CC, MUMBAI (ADDL
17 Shri.
BALAKRISHNA CHARGE-DMD (GLOBAL
MARKETS)
DMD, CORPORATE ACCOUNT
GROUP, CC, MUMBAI (ADDL
18 Shri. DMD & COO CC MUMBAI
CHARGE-DMD (GLOBAL
MARKETS)
DMD & GROUP COMPLIANCE
19 Shri. RUMA DEY
OFFICER, CC, MUMBAI

8
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MD & CEO, SBI CAPITAL MARKETS

20 Shri. AMITAVA CHATTERJEE
LIMITED, MUMBAI
21 Shri. SHAMSHER SINGH CGM, AHMEDABAD CIRCLE

22 Shri. VIDYA KRISHNAN DMD & CIO, GITC, NAVI MUMBAI

23 Shri. GULSHAN MALIK GULSHAN MALIK

DMD (RETAIL-AGRI, SME & FI) CC
24 Shri. PRAVIN RAGHAVENDRA
MUMBAI

9
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Committees of the Board as on 31.03.2022

S.No. Committees Chairman

Executive Committee of the Central Board
1 (ECCB) Shri Dinesh Kumar Khara (Chairman, SBI)

Shri Ketan S. Vikamsey (Independent

2 Audit Committee of the Board (ACB) Director)

Risk Management Committee of the Board Shri Mrugank M. Paranjape (Independent

3 (RMCB) Director)

Dr. Ganesh Natarajan, (Independent

4 IT Strategy Committee of the Board (ITSC) Director)

Special Committee of the Boards for

Shri Sanjeev Maheshwari, (Non executive
5 Monitoring of Large Value Frauds (SCBMF)
Director)

Stakeholders Relationship Committee (SRC)

6 cum Customer Service Committee of the Shri B. Venugopal, (Independent Director)
Board (CSCB)
Nomination and Remuneration Committee of
7 the Board Shri B. Venugopal, (Independent Director)

Shri Dinesh Kumar Khara, (Chairman,

Board Committee to monitor recovery
8 SBI)
(BCMR)

Shri Challa Sreenivasulu Setty, (MD- R &

Corporate Social Responsibility Committee
9 DB) (Ex-Officio)
(CSRC)

Committee to review the identification of

Shri Swaminathan J, (MD - R, C & SARG)
Willful Defaulters/ Non-Cooperative
10 (Ex-Officio)
Borrowers

10
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11
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Source Annual Report 2021-22

12
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Source Annual Report 2021-22

13
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HR issues
STATE BANK OF INDIA Officers Service Rules (SBIOSR), 1992 came
into force w.e.f. 01.01.1992. The whole OSR has been divided into 12
chapters .
✓ The first 49 rules (SBIOSR) deal with Appointment, Grades, Pay
Staff Service Scales, Extension, and termination of service and various benefits.
Rules (OSR) ✓ Rule 50 to Rule 70 deals with Conduct, Discipline and Appeal
related matter.
✓ Rule 71 to Rule 78 deals with miscellaneous matters.
✓ Separate Conduct Rules for Award Staff and Sastry Award is also
applicable for Award Staff related matters.
Subject
SBIOSR

Probation
Rule 15

Confirmation
Rule 16

Promotion
Rule 17

Seniority
Rule 18

Retirement
Rule 19

Medical Aid
Rule 24

Residential Accommodation
Rule 25

Loans for purchase / construction of house

Rule 28

Preferential Interest Rates on deposits

Rule 30

Kinds of Leave
Rule 31

Leave travel & encashment

Rule 44

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Provident fund & Pension

Rule 45

Gratuity
Rule 46

SBI OSR lay down the provisions / instructions relating to compliance

Rule 50 to 65 of the conduct / ethics rules by the officers.

Deals with the penalties and disciplinary action.

Rule 67 to 69

Central Vigilance Commission

Rule 70

✓ Banking regulations Act 1949

Service
✓ Shastri Award (1952-53)
Conditions Award
✓ Desai Award (1962)
Staff (Clerical +
✓ Award Staff – Provisions for disciplinary proceedings settlement
Subordinate )
dated 10.04.2002
✓ In line with the guidelines from RBI
✓ Applicable to all staff members holding sensitive position or
Sensitive areas of operations.
✓ All staff members having access to various applications / software
relating to Forex Transactions, Treasury Operations, Trade &
Finance, having financial implications or sensitive in nature such as
C-Sig (SWIFT), Murex, Mfx.
✓ List of Sensitive / Highly Sensitive positions are placed as
Annexure-A in the circular no CDO/P&HRD-PM/48/2022 – 23
dated 04/11/2022.
Vacation Policy
✓ Stipulation of mandatory leave for ten working days in one spell by
the officers and award staff members of the Bank in every financial
year without prior intimation to employee to maintain element of
surprise.
✓ All staff members holding the Positions / Posts termed as ‘Sensitive
/ Highly Sensitive’ from vigilance point of view shall invariably be
covered under the ‘Vacation Policy’.
✓ For complete policy please refer to circular no CDO/P&HRD-
PM/48/2022 – 23 dated 04/11/2022.

15
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✓ An officer shall retire from the service of the Bank on attaining the
age of sixty years or upon the completion of thirty years' service or
thirty years' pensionable service if he is a member of the Pension
Fund, whichever occurs first.
✓ Provided that the Competent Authority may, for reason to be
recorded in writing extend the period of service of an officer who
has completed thirty years’ service or thirty years' pensionable
Retirement
service.
✓ Provided further that an officer who has attained the age of 60 years
shall not be granted any further extension in service.
✓ An officer shall retire from the service on the afternoon of the last
day of the month in which he attains the age of sixty years provided
that the officer whose date of birth is first day of month, shall retire
from service on the afternoon of the last day of the preceding month
on attaining the age of sixty years.
✓ Lodging grievance through HRMS Portal.
✓ Voice call: helpline on IVRS number 022-22858130.
Sanjeevani Portal
✓ SMS [HELPHR (space) XXXXXXX to 567676, where XXXXXXX
represent PF ID of the employee for seeking clarifications and
lodging their grievances.
As per Lokpal and Lokayuktas Act, 2013 ,all the officials to File
Asset & Liability
declarations of assets and liabilities as on the 31st of March every year,
Statement
to the competent authority, on or before the 31st day of July of that
year.
Policy on Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal)
GARIMA With the enactment of The Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013, the Bank framed a
policy in this regard which was first circulated vide e-Circular
No.CDO/P&HRD-PM/57/2013-14 and 24th December 2013.

The purpose of this policy is to create an environment at every workplace

inside the Bank this is free from sexual harassment.

The policy is last reviewed and circulated vide Circular No

CDO/E&BC/GARIMA/3/2022-23 dt 07.10.2022 wherein purpose,
definitions, scope, applicability, other provisions, grievanve redressal
process nd etc., are detailed.

16
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CDS is a scientific performance management system used by the bank

to evaluate the performance of its employees. CDS was introduced in
FY’16
1.Grade distribution for different role holders
AAA-30%
AA-35 %
Career
A-30%
Development B-3%
System (CDS) C-2%

2.Role Classification
I. Budgetary Roles: Roles where KRAs are attached with
financial targets
II. Measurable roles: These roles will have financial targets, but
most of them are not P report parameters.
III. Non-measurable roles: Roles in which all KRAs are not
objective i.e. marks on KRAs are not directly derived from the IT
systems. The KRAs in this role are subjective.
3.Mandatory learning for employees upto SMGS-V
✓ 5 marks weightage in CDS is linked to completion of Role Based
Certification & all mandatory e-lessons.
✓ AAA grade will not be awarded to employees who do not score the
5 marks in CDS for Mandatory Learning, even if he/she otherwise
qualifies for AAA grade based on KRAs (such employees will be
awarded AA only).
✓ For Non-Measurable roles, grading will be done by the Reporting /
Reviewing Authority.
✓ Feedback functionality has been developed in HRMS for conduct
of feedback for all officers up to TEGS-VII.

17
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4.Disincentive to officers for false compliance.

✓ A new parameter “Compliance of systems & procedures including
regulatory guidelines” is included as an additional component
under the Supervisory Discretionary parameters and the scores are
re-distributed accordingly.
✓ Based on the level of false compliance of the official as advised by
Internal Audit Department, a negative score will be provided in CDS
subject to a maximum of 5(-).
✓ In case of Staff misbehavior, the negative score to be awarded to
the employee concerned.
5. Latest key Changes as per Circular No CDO/P&HRD-
CDS/39/2022-23 dt 14.09.2022
✓ Maximum cap on negative score limited to 10.
✓ Minimum score of 70 and 50 are prescribed for getting AAA and AA
grades respectively.
✓ DMD (HR) & CDO will be the Competent Authority for approving
CDS process related changes / providing clarifications on CDS
related issues.
✓ Please refer to the above circular for complete changes.

At a place of choice
Facility of Leased Undertaking to be submitted by the official availing that he will not
Accommodation commute to their place of posting/centre or leave the station/headquarter
(i.e. place of posting/centre) without prior approval of the competent
authority.
✓ In line with the RBI guidelines
✓ Internal mechanism for staff members to report to the
management, concerns about unethical behaviour, actual or
Whistle Blower
suspected fraud or violation of the Bank's Code of Conduct Policy.
✓ To build a lasting and strong culture of Corporate Governance
within the Bank
✓ There are provisions to protect the interest of Whistle Blower
keeping the informant’s identity closely guarded.
✓ Please refer to the latest review of this policy vide Circular No
CRO/RM II-FPMD/1/2022-23 dt 06.09.2022

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✓ To make employees aware about Transfer Policy

✓ For officers, maximum tenure of posting in a Position/ Assignment
Transfer Policy – should not exceed 3 Years in general.
Redeployment ✓ In any case the total stay at a Centre/ administrative office should
not exceed 5 years in general.
✓ In case of Award Staff, it should be ensured that no employee is
posted at a branch/office for more than 5 years.
✓ The routine transfer exercise begins before the commencement of
academic session prevalent normally in the respective circle.
✓ Transfer Tracking System in HRMS was introduced on 20.09.2014
✓ Transfer tracking system is an online portal in HRMS to manage
Transfer Tracking transfer of officials.
System ✓ This is introduced to leverage the available technology for optimum
utilization of HRMS for making the entire process of issuing transfer
orders, relieving/reporting and update of database online.
✓ All Clerical Staff and Officers up to TEGSS-II are covered under
Performance CDS linked PLI.
Linked Incentive ✓ Employees, posted at both operating as well as administrative
office, with CDS grade of ‘AAA’ & ‘AA” shall be eligible for PLI.
Staff deposits ✓ As per extant instructions, Staff members / Retired members in our
payment of 1% Bank are entitled to 1% additional rate of interest over and above
additional rate of the rate applicable to public on their deposits placed with the Bank.
interest.
✓ The benefit of additional 1% interest may be allowed on deposits
maintained either singly or jointly with the other family members.

Learning and Development in SBI

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The robust & vast training system of the Bank commenced its journey with setting up of 1st
non-residential training school in Kolkata on the 26th of April 1954 (Imperial Bank of India)
and entered into a new era with establishment of Staff Training College (named State Bank
Staff College) at Hyderabad on the 2nd of December 1961.
With 6 national level Apex Training Institutes and 50 SBILDs spread over the country, the
Bank is continuously engaged in skill enhancement of its employees.

With a view to transform the Bank into a learning organization and to bring the entire training
system of the Bank under a unified command, Strategic Training Unit (STU) was
operationalized on the 5th of April 2010. The training system in the Bank functions under the
overall supervision and guidance of STU, which is based at Corporate Centre, Mumbai and
headed by a CGM.
Passing Powers
Passing Powers (Rs.)
Cash Transfer
Junior Associate All new recruits at the time of joining shall be
(Customer given designation as ‘Junior Associate. 15000/- 20000/-
Support & Sales)
All employees in clerical cadre (excluding
Associate Record Keepers / Record Keeper- cum
(Customer Cashiers / Godown Keepers / Bill Collectors)
35000/- 70000/-
Support & Sales) with minimum qualification of matriculation and
1 years of service or more as on 1st June each
year.
All employees in clerical cadre (excluding
Senior Associate Record Keepers / Record Keeper- cum
(Customer Cashiers / Godown Keepers / Bill Collectors)
50000/- 100000/-
Support & Sales) with minimum qualification of matriculation and
8 years of service or more as on 1st June each
year.
All employees in clerical cadre (excluding
Record Keepers / Record Keepers- cum
Cashiers / Godown Keepers/Bill Collectors)
100000/- 400000/-
with minimum qualification of matriculation and
16 years of service or more as on 1st June
each year.

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200000/- 500000/-
Chief Associate All employees with a minimum qualification of
(Customer matriculation and completed 24 years of
Support & Sales) service (or more) in clerical cadre (excluding
Record Keepers / Record Keepers-cum-
Cashiers / Godown Keepers / Bill Collectors)
as on 1st June of each year

For Passing powers of Probationary officers, Trainee Officers and Circle Based Officers,
please refer to Circular No CDO/P&HRD-IR/77/2021-22 dt 17.12.2021.
Disciplinary Actions ( Award Staff)
✓ Absence without leave or overstaying sanctioned leave without
sufficient grounds.
✓ Unpunctual or irregular attendance.
✓ Neglect of work, negligence in performing duties.
✓ Breach of any rule of business of the bank or instruction for the
running of any department.
✓ Committing nuisance on the premises of the Bank.
✓ Holding or attempting to hold or attending any meeting on the
Minor Misconduct premises of the bank without the previous permission of the
management.
✓ Canvassing for union membership or collection of union dues or
subscriptions within the premises of the Bank.
✓ Failing to show proper consideration, courtesy or attention towards
officers, customers or other employees of the bank, unseemly or
unsatisfactory behavior while on duty.
✓ Marked disregard of ordinary requirements of decency and
cleanliness in person or dress

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✓ Warning or Censure
Minor
✓ Have an adverse remark entered against him / her; or
Misconduct:
✓ Have his / her increment stopped for a period not longer than six
Penalties
months
✓ Cash penalty up to Rs 500/-
✓ Unauthorized disclosure of information regarding the affairs of the
bank or any of its customers.
✓ Drunkenness or riotous or disorderly or indecent behavior on the
premises of the Bank.
✓ Willful insubordination or disobedience of any lawful and
Gross reasonable order of the management or of a superior.
Misconduct ✓ Willful slowing down in performance of work.
✓ Giving or taking a bribe or illegal gratification from a customer or an
employee of the Bank.
✓ Remaining un-authorized absent without intimation continuously for
a period exceeding 30 days.
✓ Misbehavior towards customers arising out of banks business.
✓ Dismissal without notice; or
✓ Removal from service with superannuation; or
✓ Compulsory retirement with superannuation; or
✓ Discharge from service with superannuation; or
Gross
✓ Brought down to lower stage in the scale of pay up to a maximum
Misconduct:
of two stages: or
Penalties
✓ Stoppage of increment/s with or without cumulative effect; or
✓ Have his / her special pay withdrawn; or
✓ Warning or Censure, or have an adverse remark entered against
him; or
✓ Imposition of Fine

Disciplinary Actions ( Supervisory Staff)

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✓ Censure
✓ Withholding of increments of pay with or without cumulative effect.
✓ Withholding of promotion.
✓ Recovery from pay or such other amount as may be due to him of
Minor Penalties
the whole or part of any pecuniary loss caused to the Bank by
negligence or breach of orders.
✓ Reduction to a lower stage in timescale of pay for a period not
exceeding 3 years, without cumulative effect and not adversely
affecting the officer’s pension;
✓ Save as provided for in (v) above reduction to a lower stage in the
timescale of pay for a specified period, with further directions as to
whether or not the officer will earn increments to pay during the
period of such reduction and whether on the expiry of such period
the reduction will or will not have the effect of postponing the future
increments of his pay.
Major Penalties ✓ Reduction to a lower grade or post.
✓ Compulsory retirement.
✓ Removal from service.
✓ Dismissal.
✓ Further an officer is placed under Suspension” under SBIOSR Rule
(68) if disciplinary proceeding against him is contemplated or is
pending or where a case against him in respect of any criminal
offence is under investigation, inquiry or trial.
Internal To facilitate aggrieved women to lodge the complaint on sexual
Complaint harassment at the workplace, bank has set up independent Internal
Committee (ICC) Complaint Committee.These are situated at Corporate Centre, Local
Head Office, Zonal Office, and Regional Business Office.
Presiding officer shall be a woman at senior level in the workplace.Not
Composition of
less than 2 members should be from the employees preferably one
Internal
from the officers and one from award staff having an appropriate
Complaint
background.One member should be from an NGO or association
Committee (ICC)
committed to the cause of women or familiar with the issues.One
member may also be included in the committee from another Circle.
Prior to Dec 2013 it was treated as Investigation report on which
disciplinary authority could decide whether to initiate disciplinary action.
The report of ICC
However now it is treated as Enquiry Report and no separate enquiry
proceedings are required.

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When an employee absents himself from work for a period of 90 days

or more without any sanction from the competent authority, or there is
satisfactory evidence of him having taken alternative employment, he is
Voluntary
sent a notice to report before 30 days.If not reported a second notice of
cessation of
30 days is issued. If no response is received to the second notice,
employment
employee is deemed to have voluntarily vacated his service. Notice to
be sent in a language which is understood by the employee and by
Regd post acknowledgement due.

IMPORTANT DAYS
Bank Day 1st July

KYC Compliance and Fraud Prevention Day 1st August

Risk Awareness Day 1st September

AML-CFT Awareness Day 2nd November

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General Awareness, Current affairs

Sr.
Question Answer
No.
1 Who is the Governor of RBI? Sh. Shaktikant Das

2 Who is the Chairman of SEBI? Ms. Madhabi Puri Buch

3 Who is the Chairman of IRDA? Sh. Debashish Panda

Dr. Govinda Rajulu
4 Who is the Chairman of NABARD?
Chintala
Sh. Sivasubrahmanian
5 Who is the Chairman of SIDBI?
Ramann
6 When was SEBI established? 12-Apr-92

7 When was NABARD established? 12-Jul-82

8 When SIDBI was established? 02-Apr-90

9 Who is the Chairman of LIC? Sh. M R Kumar

RBI has transferred the surplus fund to Central Government for
10 Rs. 30,307 Crores
FY 2021-22, How much the amount?
The Reserve Bank of India (RBI) has raised the limit of fund
11 transfer under the Indo-Nepal Remittance Facility Scheme. What Rs. 2.00 Lakhs
is new limit?
State Bank of India (SBI),
ICICI Bank, Punjab
12 Asset Reconstruction Company (India) (Arcil), is sponsored by
National Bank (PNB) and
IDBI Bank
Digital Payments Index (DPI) is based on how many key
parameters which are used to measure deepening and
13 5
penetration of digital payments in the country over different time
periods?
The World Bank has predicted that India’s economy to contract
14 6.50%
by …............ in FY 2022-23.

25
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The Reserve Bank of India has introduced Legal Entity Identifier

15 (LEI) for the payment transactions above the value of ….......... in Rs 50 crore
Centralised Payment Systems like RTGS and NEFT.
The LEI is a ….... digit number which will be used to uniquely
16 20
identify parties to financial transactions worldwide
The functioning of Payments Infrastructure Development Fund
17 RBI’s Deputy Governor
(PIDF) Scheme will be managed by
The global payment processor and integrated payment products
India Post Payments
18 provider, FSS (Financial Software and Systems) has announced
Bank (IPPB).
its partnership with
India’s private sector bank, ICICI Bank has partnered with
19 Fintech Niyo
….......... to launch and issue prepaid cards to MSME workers
The Yes Bank under YES MSME programme will offer collateral-
20 Rs 5 crore
free funds up to
21 ‘AURA’ credit card is launched by which private sector bank? Axis Bank
As per IMF, India’s GDP to contract by …............ in the fiscal year
22 6.8%
2022-23
The Federal Bank launched the Saving Account for Children
23 FedFirst
named as
The Reserve Bank of India (RBI) has appointed an external
24 professional IT firm to conduct a special audit of the IT HDFC
infrastructure of which bank?
…................... technology will allow SBI to make cross border JPMorgan’s blockchain
25
transactions in a more seamless manner. network
The National Stock Exchange (NSE) has signed MoU with various Gujarat International
26 entities to set up an International Bullion Exchange (IBX), clearing Finance Tec (GIFT) City
corporation and depository at in Gujarat
The State Bank of India has raised….... from Japan Bank for
27 $1 billion
International Cooperation (JBIC).
The Reserve Bank of India announced to raise the limit of
28 maximum balance at the end of the day from Rs…...................for Rs 1 lakh to Rs 2 lakhs
payment banks
The Insurance Regulatory and Development Authority of India
(IRDAI) has allowed insurers to invest in …............ which are
29 debt securities
issued by Infrastructure Investment Trusts (InvITs) and Real
Estate Investment Trusts (REITs).
26
`

RBI has fixed the tenure of MD and CEOs or Whole Time

30 15 years.
Directors (WTD) of banks to
MD, CEO or WTD who is also a promoter or shareholder cannot
31 12 years
serve the post for more than
32 the upper age limit for MD, CEO or WTD is 70 years
The Reserve Bank of India (RBI) has joined the Central Banks
33 and Supervisors Network for Greening the Financial System A member
(NGFS) as
34 NGFS was launched at the Paris One Planet Summit in Dec 2017.
India’s private sector bank named HDFC Bank collaborated with
35 Eva
Common Services Centers (CSCs) to launch a chatbot named
36 The Airtel Payments Bank launched a digital platform named DigiGold
The Market Regulator, Securities and Exchange Board of India
37 (SEBI) has proposed a framework to set up a …........... in which gold exchange
the yellow metalwill be in the form of electronic gold receipts.
38 The gain of RBI from foreign exchange transactions has raised by 69%
The World Bank (WB) approved the….... program to uplift the
39 $500 million
MSME sector of India.
The Reserve Bank of India (RBI) has extended the Risk-Based Housing Finance
40
Internal Audit (RBIA) system for Companies (HFCs).
The Reserve Bank of India (RBI) allowed prepaid mobile Bharat Bill Payment
41
recharges through the System (BBPS).
the beleaguered Punjab
The Reserve Bank of India (RBI) gave ‘in-principle’ approval to
and Maharashtra
42 Centrum Financial Services Ltd (CFSL) to form a small finance
Cooperative Bank (PMC
bank (SFB), which will take over
Bank).
The Reserve Bank of India launched a scheme to support
43 RBI Retail Direct scheme
investment in Government Securities (G-Sec) by retail investors
RBI has allowed banks to extend personal loans up to …....... to
any director of other banks, all loans to the relatives of the bank’s
44 Rs 5 crore
own director, relatives of director of other banks, companies or
firms linked with them.

27
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The State Bank of India (SBI) launched a new security feature

45 which will protect customers from various digital frauds and offer SIM Binding
them a safe online banking experience, named
The Reserve Bank of India (RBI) has empanelled…..................to
46 The IndusInd Bank
act as an ‘Agency Bank’.
NPCI International Payments Ltd (NIPL) has entered into a
47 partnership to launch the Unified Payments Interface (UPI) Mashreq Bank
payment system facility in the UAE
The Union Cabinet allowed 100% foreign direct investment (FDI)
48 in…..............via the the telecom sector
automatic route
Rs. 80.5 lakh on an
India Debt Resolution Company Ltd (IDRCL). was set up with a
49 authorized capital of Rs
paid-up capital of
50 crore
The Reserve Bank of India (RBI) has allowed the transfer of loans asset reconstruction
50
which are classified as fraud by lenders to companies (ARCs).
51 Who heads the Board for Payment and Settlement Systems? The Governor of RBI
Who is the chairperson of the Monetary Policy committee of
52 The Governor of RBI
India?
53 In how many languages is the amount is written on the bank note? 15

54 In which year the Paper Currency Act was passed? 1861

How much money is the Central Government required to maintain
55 10 crores on a daily basis
as minimum cash balance with RBI on a daily basis?
What do we call the money that is lent for one day in the call
56 Call Money
money market?
What do we call the money that is lent for more than one day but
57 Notice Money
less than 15 days in the call money market?
58 What is the MSME Public Procurement Portal called? MSME Sambandh
India was elected to the Economic and Social Council (ECOSOC),
59 one of the 6 main organs of the United Nations, for the- 2022-26
…..........term
RBI allowed Centrum Group to take over PMC bank and re-launch
60 BharatPe
it as a small finance bank in a joint venture with

28
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ASBA is a mechanism which helps investors to subscribe Initial

61 Public offerings. What does "B" represent in the abbreviation of Blocked
"ASBA"?
62 How long is the Forex Market open in India? 24 hours a day
Foreign investment beyond percentage has been permitted
63 74
through government approval route in Defence sector.
64 The RuPay card launched In 2012
When is Micro, Small and Medium-sized Enterprises (MSMEs)
65 June, 27
Day celebrated every year?
Which section of the Banking Regulations Act, 1949 allows RBI
66 Section 51
for mergers?
Capital Small Finance
67 Which is the first small finance bank of the nation?
Bank Ltd
68 Which is the accounting period of RBI? April-March
….................. is a category of money supply that includes all
69 physical money such as coins and currency, demand deposits Narrow money
and other liquid assets held by the central bank.
Which sections of RBI Act provides central bank, the authority to
70 Section 22
print currency notes?
Economic planning is often regarded as a technique of managing
71 an economy. From whom India formed the concept of economic Russia
planning?
The alphabetical letter ‘H’ is inserted as identification mark in
72 ₹ 200 rupee note
which rupee note for visually impaired persons?
Which nation has become the first country in the world to adopt
73 El Salvador
bitcoin as legal tender?
Under the provisions of …...............Monetary Policy Committee of
74 RBI Act,1934
RBI is set up.
The International Bank for Reconstruction and Development
Middle income
75 (IBRD) is an international financial institution that offers loans to
developing countries
which category?
BSE and NSE announce the daily limits for every stock before the
76 start of the day. Each stock has a certain limit up to which it can circuit filter
move, for a given day. This is called.

29
`

77 MMID is a….................digit code issued by the bank. 7

Which is the first listed NBFC in India to receive a licence for forex Capital India Finance
78
business? Limited
RBI capped the tenure of MD, CEO, and whole-time director
79 (WTD) of private sector banks at…...................and the upper age 15 years, 70 years
limit for these posts will be…....................
80 Validity of a Priority Sector Lending Certificate is every year till Mar-31
National Payments
81 UPI was developed by which entities?
Corporation of India
82 National Income at Current Prices is also known as? Nominal Income
How many currencies are there in the basket of Special Drawing
83 5
Rights (SDR)?
Which is the initiative taken by the RBI for those living in villages
84 Kiosk Banking
or other remote areas who are deprived of banking services.
85 Which ATMs are set up for the purpose of E-Commerce? Yellow Label ATMs
NCGTC issued guidelines for credit guarantee scheme for
86 medical infrastructure projects. What is the total value of this Rs. 50, 000 crores
credit guarantee scheme by NCGTC?
87 Who is the author of the book 'Bank with a Soul: Equitas’? C K Garyali
India observes National Statistics Day on June 29. Who is
88 PC Mahalanobis
referred to as the 'father of Indian statistics’?
International Solar Alliance has announced to launch World Solar
89 Bank. The bank has planned to disburse how much amount to the $ 50 billion
member countries in the next 10 years?
….............. is a proposed bad bank to take over stressed assets
90 NARCL
of lenders
Mega Integrated Textile
91 PM MITRA parks stands for
Region and Apparel
“Farm to fibre; fibre to
92 PM MITRA initiative is motivated by PM Modi’s 5F vision of factory; factory to fashion;
and fashion to foreign”
93 National Small Industry Day is observed every year on Aug-30

30
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Who insures deposits in private and public banks, small finance

banks, local area banks,
94 DICGC
cooperative banks, regional rural banks, payment banks as well
as Indian branches of foreign banks?
Which Country has become first country to adopt Unified Payment
95 Interface (UPI) standards of India for its quick response (QR) Bhutan
code?

Questi A B C D
on No.
1. What aspect of agriculture is focused upon by Krishi Karman Award?
Supply Sales Production Water Management
2. Which bank has recently signed an MoU with South-Central Railway zone of the
Indian Railways, for doorstep collection of earnings from the railway stations?
Punjab National Bank of Baroda State Bank of Bank of India
Bank India
3. Flipkart recently signed an MoU with which state’s Handloom and Handicrafts
Development Corporation for promotion of local handicrafts?
Odisha Gujarat Rajasthan Himachal Pradesh
4. According to the Union Budget 2020-21, what is the disinvestment target of the
Indian Government for 2020-21?
₹ 1.0 Lakh Crores ₹ 1.1 Lakh Crores ₹ 1.2 Lakh Crores ₹ 1.3 Lakh Crores
5. Which Indian Public sector enterprise has recently raised $750 million Japanese yen
loan, to reduce air pollution from its power projects?
Oil and Natural NTPC Limited Power Grid NHPC Limited
Gas Corporation Corporation of
India
6. Which Indian PSU signed a Memorandum of Understanding (MoU) with RailTel
Corporation of India for mutual co-operation in communication and defence projects?
Bharat Electronics Hindustan Defence Garden Reach
Limited Aeronautics Research and Shipbuilders &
Limited Development Engineers Limited
Organisation
7. As of 2020, what is the Foreign Direct investment (FDI) limit, allowed in insurance
intermediaries?
0% 25% 49% 100%
8. The ‘COVID-19 Economic Response Task Force’, unveiled by the Prime Minister of
India, is to be headed by which Union minister?
Piyush Goyal Harsh Vardhan Nirmala Rajnath Singh
Sitharaman
31
`

9. As per the recent judgement of the Supreme Court, which category of banks may
also be included under SARFAESI Act?
Regional Rural Cooperative Small Finance Local Area Banks
Banks Banks Banks

10. ICICI Lombard General Insurance is set to acquire which insurance company?
Digit Insurance Bharti AXA Sundaram ERGO Life Insurance
General Insurance
Insurance
11. Which company has purchased 74% stake in Mumbai International Airports Limited
(MIAL)?
Tata Group Reliance Adani Group GMR Infra
Industries Ltd
12. Who is the head of the committee constituted by RBI regarding restructuring of loans
impacted by COVID?
Uday Kotak Usha Thorat KV Kamath Urjit Patel
13. Bombay Stock Exchange (BSE) partners with which bank, to empower Small and
Medium Enterprises?
Axis Bank Yes Bank HDFC SBI
14. Which bank has tied up with Japan Bank for International Cooperation (JBIC) to raise
USD 1 billion untied loan?
PNB SBI UBI INDIAN BANK
15. Which bank has launched National Common Mobility Debit Card, with special
features like ‘tap and go’ and ‘offline wallet’?
Axis Bank Karnataka Bank City Union Bank Kotak Mahindra Bank
16. What is the new limit of transaction made using contactless card, as per the recent
statement of the RBI?
Rs 1000 Rs 2000 Rs 5000 Rs 10000
17. What is the limit of FDI in Defence sector, under automatic route?
26% 49% 74% 100%
18. Which regulating entity has released revised Priority Sector Lending guidelines
recently?
Ministry of Finance SIDBI RBI NABARD
19. The Central Government is to borrow Rs 1.10 lakh crore on behalf of the states, to
meet which shortfall?
State Revenue GST Grants for urban Assistance to SDRF
Deficit compensation local bodies
20. Which organisation has launched the facility to file NIL GST statement through SMS?
Finance GSTN Central Board of Central Board of Direct
Commission Indirect Taxes Taxes
and Customs

32
`

21. The first foreign Sovereign Wealth Fund (SWF), that was notified by the Finance
Ministry, is associated with which country?
United States United Arab Australia United Kingdom
Emirates
22. Legal Entity Identifier (LEI), which was seen in the news recently, has how many
digits?
10 12 15 20
23. Which bank has syndicated a “sustainability-linked loan” facility aggregating $1.50
billion for a Singapore-based global trading corporate?
SBI UBI HDFC CANARA BANK
24. Recently, with which bank IIFL Home Finance Ltd has signed an agreement for co-
lending?
PNB Canara Bank HDFC SBI
25. As per the Economic Survey 2021-22, what is the estimated GDP Growth of India in
2022-23?
9.2-9.7 % 8.2-8.7 % 8.0-8.5 % 10.0 – 10.5 %
26. Which bank has announced to set up an Innovation, Incubation and Acceleration
Centre (IIAC) at Hyderabad?
HDFC SBI PNB AXIS BANK
27. What is the total amount of revenues and investments mobilized from asset
monetization in FY22 in India?
Rs 36000 Crore Rs 45000 Crore Rs 75000 Crore Rs 96000 Crore
28. Which global payments company is associated with the world’s first “crypto-backed”
payment card?
VISA MASTER CARD RUPAY AMERICAN EXPRESS
29. Special Drawing Rights (SDR), which is sometimes seen in the news, is associated
with which institution?
World Bank International World Economic Asian Development
Monetary Fund Forum Bank
30. ‘Trade Emerge’ is an online platform of which Bank?
SBI HDFC ICICI AXIS BANK
31. As per the Ratings agency ICRA, what is the estimated real GDP Growth of India in
FY 2022?
12.5 0% 11. 00% 10.00 % 9.00 %
32. The Monetary Policy Committee (MPC) has how many members?
4 6 8 10
33. What was the Retail inflation based on Consumer Price Index (CPI) is May 2022?
7.98 % 7.04% 6.75% 6.40%
34. Which institution/ department notifies cost inflation index (CII) every year?
Reserve Bank of Central Board of National Department of
India Direct Taxes Statistical Office Economic Affairs

33
`

35. As per MFIN report, which is the largest state in terms of the outstanding portfolio of
microfinance loans as on 31.3.2022?
Maharashtra Tamil Nadu Andhra Pradesh Uttar Pradesh
36. Which institution provides ‘Payment aggregator licences’ to payment providers?
NPCI Finance Ministry SEBI RBI
37. Which bank was named as ‘World’s Best SME Bank’ by Euromoney?
RBS Bank DBS Bank State Bank of Standard Chartered
India Bank
38 How many digital banking units were inaugurated by /Prime Minister Modi on
October 16, 2022?
25 50 75 100
39. The tokenization of card-based payments was implemented from which date?
01.09.2022 01.10.2022 01.11.2022 01.08.2022
40. The RBI has directed which banks belonging to tier 3 and tier 4 categories to create
a Board-approved compliance policy and compliance function?
Urban cooperative Rural Regional Schedule Banks Private Banks
banks Banks
41. Which Bank, the largest private sector bank in India, became the first bank in the
country to issue an Electronic Bank Guarantee (e-BG)?
HDFC ICICI Axis BAnk Kotak Mahindra BAnk
42. Which bank is the first bank to get listed its Payment Gateway platform on “TIN 2.0
platform” of the Income Tax Department.
HDFC Federal Bank SBI ICICI
43. Union Minister for Micro, Small, and Medium Enterprises (MSMEs) launched the
second phase of the MSME RuPay Credit Card with the National Payments
Corporation of India (NPCI) and how many banks?
2 4 6 8
44. the Reserve Bank of India (RBI) issued a fresh set of guidelines for the issuance of
debit and credit cards come into effect from which date?
01.07.2022 01.08.2022 01.10.2022 01.11.2022
45. NPCI International Payments Ltd (NIPL) has announced that BHIM UPI is live on
NEOPAY terminals across which country?
Russia UAE USA Japan
46. Which is the first country to adopt India’s UPI system?
Nepal Shri Lanka Mayanmyar Bhutan
47. Reserve Bank of India (RBI) has imposed monetary penalty of Rs 1 crore on which
bank?
Paytm Airtel India Post Neo Payment Bank
PaymentBank PaymentBank Payment Bank
48. Which regulator body launched the ideathon named ‘Manthan’?
RBI SEBI NABARD IRDA

34
`

49 As per the data from Commerce Ministry, what was India’s merchandise export figure
during 2021-22?
USD 218 billion USD 418 billion USD 618 billion USD 818 billion
50. In 2021, which country recorded the highest real-time transactions of up to USD 48.6
billion?
USA India Chaina Russia
51. Which Indian state has announced to provide Rs 900 per month for farmers for
rearing indigenous cows?
Gujrat Bihar Madhya Pradesh Uttar Pradesh
52. Which is the public sector bank to go live on Account Aggregator (AA) framework?
SBI Union Bank Canara Bank BoB
53. ‘Section 33 of the Aadhaar Act’, which was seen in the news, is associated with
which action?
Disclosure of Identity of Security of Storage of Information
information Children Information
54. MSME Ministry launched a Credit Card for MSMEs, in collaboration with which
payment services company?
Rupay VISA Master Card Maestro
55. The World Bank sanctioned USD 350 billion to which state for implementing the
‘SRESTHA’ Project?
Assam Gujarat Rajasthan West Bengal
56. Which regional rural bank bagged six national awards from PFRDA, for achievement
in enrolment of Atal Pension Yojana (APY)?
Kerala Gramin Karnataka Vikas Tamil Nadu Andhra Pradesh
Bank Grameena Bank Gramin Bank Grameena Vikas Bank
57. Which is the venue of the World Economic Forum (WEF) Annual meeting 2022?
New York Davos Geneva Paris
58. Which state implements the ‘Indira Gandhi Shehri Rozgar Guarantee Yojana.’?
Rajasthan UP MP Gujrat
59. RBL Bank has collaborated with which payment service to offer UPI payments?
Amazon Pay PhonePe Google Pay Paytm
60. Which state is the top sugar producer of India in 2021-22?
Madhya Pradesh Maharashtra Gujarat Karnataka
61. NBFCs are classified into how many layers, as per the Reserve Bank of India’s
framework?
2 4 6 8
62. What is the new limit for auto-debit mandates done through cards and UPI (after
June 2022)?
Rs 5000 Rs 10000 Rs 15000 Rs 20000
63. Which social media platform launched SMBSaathi Utsav to support small
businesses?
Facebook WhatsApp Twitter Koo
35
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64. Which Indian conglomerate got approval from the RBI for merger of its units, and is
set to become the largest retail finance NBFC in India?
Godrej Group Bajaj Group Shriram Group Muthoot Group
65. Which is the only Indian city to achieve the ‘Gold’ standard category in Asia Pacific
Sustainability Index 2021?
New Delhi Bengaluru Hyderabad Mumbai
66. Open Network for Digital Commerce (ONDC) launched ‘Grand Hackathon’ in
collaboration with which institution?
NITI Aayog RBI SIDBI NABARD
67. What is the rate of inflation based on All-India Wholesale Price Index (WPI) in June
2022?
11.18 % 13.18 % 15.18 % 18.18 %
68. Which Indian public sector bank has launched the ‘WhatsApp banking service’?
SBI PNB Canara BAnk Indian Bank
69. What is the name of cyber attack in which a computing device is hijacked and its
resources are used to illicitly mine cryptocurrency?
Crypto-hacking Cryptojacking Mine-hacking Minejacking
70. Who has been named as the new MD and CEO of the National Stock Exchange
(NSE)?
Ashish Chauhan K V Kamath Urjit Patel Arundhati Bhatacharya
71. Open Network for Digital Commerce (ONDC) has signed MoU with which regulatory
body for coordination of functions of institutions?
NABARD SIDBI EXIM Bank NHB
72. Which is the first Indian company to be named in the Forbes Cloud 100 List?
Cred Razorpay Paytm PayU
73. Which Indian bank manages Indian Visa Application Centre (IVAC) in Bangladesh?
SBI HDFC ICICI Canara Bank
74. Asian Development Bank (ADB) has announced to provide USD 96.3-mn loan to
improve water supply in which state?
Himachal Pradesh Assam Andhra Pradesh Karnataka
75. Which bank has the highest market share of debit cards?
SBI HDFC ICICI PNB
76. Who is the head of the restructured SEBI its high-level panel on cyber security
(September 2022)?
Navin Kumar Ajay Tyagi Nandan Nilekani Subash Chandra Garg
Singh
77. Which city hosted the ‘Cyber Crime Investigations And Intelligence Summit’ (CCIS -
2022)?
Bengaluru Bhopal Hyderabad Pune
78. National Company Law Tribunal (NCLT) approved the merger of Exide Life
Insurance with which major insurance company?

36
`

LIC HDFC Life ICICI Prudential SBI Life Insurance

Insurance Life Insurance
79. As per the recent World Bank report, what is India’s GDP projection in the current
fiscal year (2022-’23)?
6.2 % 6.5 % 7.00 % 2.2 %
80. As per the recent study, which region is the world’s fastest-growing crypto adopter?
South America Middle East and South and East Oceania
North Africa Asia
81. Cyber Jaagrukta Diwas is an initiative launched by which Union Ministry?
Ministry of Ministry of Home Ministry of Ministry of Finance
Electronics and IT Affairs Science and
Technology
82. Which stock exchange has launched Electronic Gold Receipt (EGR) on its platform?
National Stock Bombay Stock Calcutta Stock Ahmedabad Stock
Exchange Exchange Exchange Exchange
83. What is the current Fund transaction limit under Unified Payments Interface (UPI)?
Rs. 50,000 Rs.100,000 Rs. 200,000 Rs. 300,000
84. Which among the following can not be called an ant inflationary measure?
Raising the Bank Raising the Purchase of Rationing of the Credit
Rates Reserve Ratio securities in the
Requirements Open Markets
85. What is the FDI allowed for Urban Infrastructure?
49 51 74 100
86. Which is the first company to launch a Health insurance for Pet Dogs and
‘Emergency Pet Minding’ cover?
HDFC Standard Max Life Bajaj Allianz Life Future Generali India
Life Insurance Insurance Insurance Insurance
87. The amendments to the ‘Limited Liability Partnership’ 2008 will take effect from which
date?
March 1 April 1 May 1 June 1
88. Which Indian Public sector banking launched ‘Start-up Banking’ initiative?
SBI BoB PNB Bank of India
89. As per the recent statement of the Union Labour Minister, what was the number of
job seekers in the country in 2017?
1.24 crore 2.24 crore 3.24 crore 4.24 crore
90. Which ratings agency has slashed the GDP growth forecast of India to 0.8% from its
previous estimate of 2%, for the financial year 2020-21?
S&P Fitch Ratings CRISIL IndRa
91. Which Indian Private-sector bank will hold 30 percent of stake in Max Life Insurance,
in its joint venture with Max Financial Services?
HDFC ICICI Yes Bank Axis Bnk

37
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92. Which bank has launched an overdraft (OD) facility named ‘Insta FlexiCash’, for its
salaried account customers?
SBI Indusind Bank ICICI HDFC
93. What is the limitas launched an overdraft (OD) facility named ‘Insta FlexiCash’, for its
salaried account customers?
Rs 50000 crore Rs 100000 crore Rs 200000 crore Rs 300000 crore
94. Which Indian payments bank recently crossed a mile-stone of two crore customers?
Airtel Payments IndiaPost Fino Payments Paytm Payments Bank.
Bank Payments Bank Bank.
95. According to the Digidhan Dashboard, which was the most popular means of digital
transaction in the Financial year 2019-20?
BHIM UPI Debit cards Prepaid Internet Banking
instruments
96. Which private sector bank sold its stake to Ageas Insurance, which led to the new
brand named Ageas Federal Life Insurance?
ICICI Yes Bank IDBI Axis Bank
97. What is the name of the standard term life insurance product mandated by IRDAI?
Jeevan Shanthi Jeevan Bima Jeevan Kaushal Saral Jeevan Bima
98. Micro Irrigation Fund (MIF), which was seen in the news recently, is created with
which organisation?
NABARD SBI SEBI FCI
99. Which bank has launched digital platform ‘Merchant Stack’ to provide banking
services to retail merchants?
HDFC AXIS SBI ICICI
100. Which is the major component of India’s foreign exchange reserves?
Gold Foreign Currency SDR with IMF Reserve Position with
assets IMF

101. Which is the first Indian company to cross USD 100 billion annual revenue?
Adani Industries Reliance Tata Industries Future Enterprises
Industries
102. Former RBI Deputy Governor S S Mundra has been appointed as the Chairperson of
which institution?
IBBI BSE NSE RBIH
103. When was the ‘Insolvency and Bankruptcy Board of India’ set up in India?
2010 2012 2016 2018
104. Which country’s central bank partnered with Bank for International Settlements (BIS)
to establish a ‘Pooling Scheme’?
USA Chaina Russia UK
105. ’Financial Stability Report’ is the flagship publication of which institution?
IMF RBI SBI NITI Ayog
106. Which Indian institution launches the Digital Payments Index (DPI)?
38
`

NPCI NITI Aayog RBI Ministry of Finance

107. Which one among the following has not started commercial banking ?
SIDBI IDBI ICICI UTI
108. The maturity period of Treasury Bill is
91 Days 364 Days Both (a) and (b) None of these
109. From which date have all banks started sharing their ATM force of cost for
transactions?
January 1, 2009 April 1, 2009 July 1, 2009 September 1, 2009
110. In India the basic objectives of Monetary Policy is/ are
In India the basic Price control and Price reduction All of the above
objective of command on and credit
Monetary Policy is/ economy reduction
are

111. E-banking is synonymous with

Tele-Banking Internet Banking Furo Banking None of the above
112. SlDBI was set up in ___ as a wholly owned subsidiary of
1985 - EXlM 1969 - RRBI 1975 - IFCI 1990 - lDBI
113. "Repo Rate" refers to the rate at which
RBI borrows short Banks keeps the RBI lend short Forex purchased by
term money from money with RBI term money to RBI
the markets the Banks

114. Minimum Alternative Tax (MAT) under sec. 115 JB of the income tax act is applicable
on
Partnership firm Association of Certain All types of companies
persons companies
115. NABARD has been established on the recommendation of
Talwar committee Tandon Narasimhan Shivaraman committee
committee Committee
116. Which one is not non-marketable securities?
Corporate Bank Deposits Deposits with Post office certificate
securities companies deposits
117. The most widely used tool of monetary policy is known as?
Open market Discount rate Issuing of notes None of these
operations
118. When RBI increases the cash reserve ratio (CRR), it will
Decrease money Increase money Increase supply No impact on money
supply in the supply in the initially but supply in the economy
economy economy decrease
automatically
later on.
39
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119. RBI regulates which of the parameters by undertaking open market operation
transactions.
Inflation Borrowing power Money supply in Both a & c
of the commercial the economy
banks
120. What is the theme of India’s G20 Presidency in 2022?
Jan Bhagidari Vasudhaiva LiFE (Lifestyle for Bharat Mata
Kutumbakam Environment)
121. As per the recent data, the mutual fund penetration is the maximum in which state?
Maharashtra Kerala Telangana Gujarat
122. Which institution announced the Infrastructure Resilience Accelerator Fund (IRAF)?
WEF CDRI ISA BIMSTEC
123. Which country is the leading producer of millets with 41 per cent of global
production?
China India Bangladesh Indonesia
124. As per the Amendment in Aadhar Rules, supporting documents need to be updated
once in how many years?
5 10 20 25
125. Which country is the host of the “No Money for Terror” conference?
Russia India Sri Lanka Bangladesh
126. Which country signed the Just Energy Transition Partnership (JETP) in the G-20
summit 2022?
India Indonesia China Japan
127. Who has been appointed as the Chairman of the National Pension System Trust
(NPS Trust)?
Suraj Bhan Subash Chandra Urjit Patel Arvind Subramanian
Garg
128. India’s first floating financial literacy camp was organized recently by which bank?
SBI HDFC Indian Post Bank of Baroda
Payment Bank

40
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Answers :
1. C 2. C 3. B 4. C 5. B 6. A 7. D 8. C 9. B 10. B
11. C 12. C 13. B 14.B 15.B 16.B 17.C 18. C 19. B 20. B
21. B 22. D 23. B 24. A 25. C 26. B 27. D 28. B 29. B 30. C
31. C 32.B 33. B 34. B 35. B 36. D 37. B 38. C 39. B 40. A
41. A 42. B 43. B 44. A 45. B 46. A 47. A 48. B 49. B 50. B
51. C 52. B 53. A 54. A 55. B 56. B 57. B 58. A 59. A 60. B
61. B 62. B 63. B 64. C 65. B 66. D 67. C 68. A 69. B 70. A
71. B 72. B 73. A 74. A 75 A 76. A 77. B 78. B 79. B 80. B
81. B 82. B 83. B 84. C 85. D 86. D 87. B 88. B 89. D 90. B
91. D 92. C 93. B 94. B 95. A 96. C 97. D 98. A 99. C 100. B
101. B 102. B 103.C 104. B 105. B 106. C 107. A 108. A 109. B 110. D
111. B 112. D 113. C 114. C 115. D 116. A 117. A 118 A 119. D 120. D
121. A 122. B 123. B 124. B 125. B 126. B 127. A 128.C

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Deposit Products (SB, CA, TDR/STDR all variants) (SME and PER)
CURRENT ACCOUNT
(Latest CA Master Circular NBG/TBU-LTP/2/2022 – 23 dt 05.04.2022)
• Individuals
• Proprietorship Firms
• Partnership Firms
• Joint Hindu Family
• Private & Public Limited Company
• One Person Company
Who can
• Limited Liability Partnerships (LLP)
open
• Clubs/ Associations/ Societies of other fiduciary nature
Current
Account • Trusts
• Liquidators
• Executors and Administrators
• Banks
• Office Accounts (Pooling Account/Parking Account)
• Central/State Govt.Depts/ PSUs/Govt.Autonomous bodies/NBFCs

Banks may open current accounts for borrowers who have availed credit
facilities in the form of cash credit (CC)/ overdraft (OD) from the banking
system as per the provisions below:
a) For borrowers, where the exposure of the banking system is less than ₹5 crore,
there is no restriction on opening of current accounts or on provision of CC/OD
Eligibility facility by banks, subject to obtaining an undertaking from such borrowers that
for opening they shall inform the bank(s), as and when the credit facilities availed by them from
of Current the banking system reaches ₹5 crore or more.
Accounts as
per RBI b) In respect of borrowers where exposure of the banking system is ₹5 crore or
guidelines more, such borrower can maintain current accounts with any one of the banks with
which it has CC/OD facility, provided that the bank has at least 10 per cent of the
exposure of the banking system to that borrower. Further, other lending banks
may open only collection accounts subject to the condition that funds deposited in
such collection accounts will be remitted within two working days of receiving such
funds, to the CC/OD account maintained with the above-mentioned bank

42
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maintaining current accounts for the borrower. In case none of the lenders has at
least 10% exposure of the banking system to the borrower, the bank having the
highest exposure may open current accounts. Non-lending banks are not
permitted to open current accounts.
In case of customers who have not availed CC/OD facility from any bank and
with credit exposure other than CC/OD from the Banking system, bank may
open Current Accounts as under:
a) In case of borrowers where exposure of the banking system is Rs.50 crore or
more (Consortium/ MBA Arrangement), Banks shall be required to put in place an
escrow mechanism. Accordingly, Current Accounts of such borrowers can only be
opened / maintained by the escrow managing bank. However, there is no
restriction on opening of ‘collection accounts’ by lending banks subject to the
condition that funds will be remitted from these accounts to the said escrow
account at the frequency agreed between the bank and the borrower. Non-lending
banks shall not open any Current Account for such borrowers.

For consortium/MBA where SBI is a Lead Bank/ with highest exposure, we may
insist on opening the Current Account (Escrow) with us/convert our existing CA
into an Escrow Account. Current Accounts with other lending Banks to be
converted into “Collection Accounts”

In case of sole Banking with SBI, the Current Accounts with other Banks to be
closed within 30 days and a confirmation to this effect given by the Borrower.
However, non-lending banks may open only collection accounts.

b) In case of borrowers where exposure of the banking system is Rs.5 crore or

more but less than Rs.50 crore, there is no restriction on opening of Current
Accounts by the lending banks. However, non-lending banks may open only
collection accounts. Current Accounts with non-lender Banks to be closed within
a period of 30 days or converted to “Collection Account

c) In case of borrowers where exposure of the banking system is less than Rs.5
crore, banks may open current accounts subject to obtaining an undertaking from
such customers to the effect that customers shall inform the bank(s), if and when
the credit facilities availed by them from the banking system becomes Rs.5 crore
or more. The accounts with non-lender banks are regular Current Accounts
instead of collection accounts.

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Banks are free to open current accounts of prospective customers who have
not availed any credit facilities from the banking system, subject to
necessary due diligence as per their Board approved policies, as hitherto.

Documents Required for opening Current Account

When an account is opened in the names of 2 or more persons, they should be

asked to sign the appropriate declaration regarding operations printed on the
account opening form, according to whether the account is to be operated by

Individuals
• ‘Both or all the parties jointly and the survivor(s) of them’
• ‘Either or any number of them and the survivor(s)’
• ‘Former or survivor’ or ‘latter or survivor’, etc.

No current account should be opened in the name of, or on behalf of a minor,

without reference to the controlling authority, unless a guardian of the property (not
merely of the person) of the minor has been appointed under the Guardians and
Accounts in Wards Act.
the Names
of Minors In no case should a minor be allowed an overdraft. An overdraft to a guardian may
only be allowed under the authority of the controlling office and, ordinarily, with the
sanction of the Court.

Minimum 2 documents issued in the name of Proprietary Concern from the

following list of documents along with PAN of the proprietor as a Beneficial Owner
must be taken and in case Permanent Account Number is not submitted an
Officially Valid Document shall be submitted.
i) Proof of the name, address and activity of the concern like registration certificate
Proprietorsh
(in the case of a registered concern).
ip Firms
ii) Certificate/license issued by the Municipal Authorities under Shop &
Establishment Act.
iii) Sales and Income Tax returns.
iv) GST/CST certificate, certificate/registration document issued by Sales
Tax/Service Tax/Professional Tax authorities.

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v) License/ Certificate of practice issued in the name of the proprietary concern by

any professional body incorporated under statute (e.g., Certificate of Practice
issued by Institute of Chartered Accountants of India, Institute of Cost Accountants
of India, Institute of Company Secretaries of India, etc.)
vi) IEC (Importer/Exporter Code) issued to the Proprietary Concern by the Office of
Director General of Foreign Trade (DGFT) in the name of Proprietary Concern.
vii) The complete Income Tax Return (not just the acknowledgement) in the name
of the sole proprietor where the firm’s income is reflected duly authenticated/
acknowledged by the Income Tax authorities.
viii) Utility bills such as electricity, water and landline telephone bills in the name of
the proprietary concern.
1. Registration Certificate (in case of registered firms). 2. Partnership Deed. 3. PAN
of the Partnership Firm.
4. Permanent Account Number or Form 60 issued to the person holding POA on its
behalf and in case Permanent Account Number is not submitted an Officially Valid
Document shall be submitted.
Other Documents:
5. A declaration containing the names of all the beneficial owners together with their
shareholding / controlling interest / stake duly signed by the authorized signatory.
6. Partnership Letter on Cos 37, signed by all partners. Each partner has to sign
twice on partnership letter – first on behalf of the firm and second on personal
Partnership
capacity. (To be compulsorily obtained in case of partnership firms).
Firms
7. Mode of operation in case of Partnership to be indicated clearly in AOF.
8. POA granted to a partner or employee of the firm to transact business on its
behalf
9. PAN and OVD of all partners & Beneficial Owners, PoA holder.

Whenever there is a change in the constitution of a firm, unless there is an

agreement to the contrary, the relative account should be closed, and a fresh
account should be opened in the name of the reconstituted firm. The death of a
partner will automatically dissolve the Partnership Firm.

• Proof of Identification of Karta

Joint Hindu • Prescribed Joint Hindu Family Letter on COS 38 signed by all the adult
Family coparceners
Accounts • Identity of adult coparceners
• PAN Card of Joint Hindu Family

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• On death of a coparcener, birth of a coparcener and a minor coparcener attaining

majority (18 years), a fresh JHF letter (COS 38) has to be executed
• Declaration that a) the depositor is the Karta of the Joint Family, b) the deposit
belongs to JHF

1. Certificate of Incorporation.
2. Memorandum of Association and Articles of Association
3. A resolution from the Board of Directors and Power of Attorney granted to its
managers, officers or employees to transact on its behalf; and
4. PAN or Form 60, issued to managers, officers or employees holding an attorney
to transact on the company’s behalf and in case Permanent Account Number is not
submitted an Officially Valid Document shall be submitted.
Other Documents 5. A declaration containing the names of all the Beneficial
Owners together with their shareholding / controlling interest / stake duly signed by
the authorized signatory.
Limited
6. Certificate of Commencement of Business (in case of Public Limited Company)
Companies
7. CIN No.
8. Copy of PAN of Company
9. Proof of Current Address
10. Any officially valid document/ Identification of those who have authority as per
POA granted to operate the account (as applicable to individual accounts) and KYC
of all such persons operating the account and Beneficial Owners.
11. Certified copy of a resolution, regulating the conduct of the account,
12. PAN of the Chairman / Managing Director / Chief Promoter etc. of all Related
persons or Beneficial Owners
13. Separate Annexure for each Beneficial Owner to be obtained
1. Copy of the Memorandum of Association and Articles of Association.
2. Resolution of managing body for opening the account
3. Copy of the Byelaws and Resolution of the Society, regarding the conduct of the
Societies account, is to be obtained.
/Association 4. Government / Military Order (whichever applicable).
/Club 5. PAN of Chairman/ MD/ Chief Promoter/Secretary, etc. of all Related Persons or
Beneficial Owners,
6.Separate Annexure II of AOF for each Beneficial Owner to be obtained.

Unincorpora 1. Resolution of the managing body of such association or body of individuals

ted 2. Power of Attorney granted to transact on its behalf.
46
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association 3. Permanent Account Number or Form 60 issued to the person holding POA on its
or body of behalf and in case Permanent Account Number is not submitted an Officially Valid
individuals Document shall be submitted.
4. Such information as may be required by the Bank to collectively establish the
legal existence of such an association or body of individuals.
5. PAN of all Related Persons or Beneficial Owners
6. Separate Annexure for each Beneficial Owner to be obtained
7. A declaration containing the names of all the Beneficial Owners together with
their shareholding / controlling interest / stake duly signed by the Authorized
Signatory.

I. Resolution of the managing body of the Political Party (an association or

body of individuals) for opening of the Account in the Bank with the
name(s) of the authorized signatory (s) along with the list of the office
bearers.
II. Power of attorney granted to transact on its behalf.
III. PAN of the political party.
IV. KYC Documents for all Beneficial owners and Power of Attorney holders
/ Authorized Signatories: (a) Certified copy of any one OVD, (b) PAN or
Form 60, (c) Photograph & (d) Customer Information Sheet or CIS.
V. A declaration containing the names of all the beneficial owners i.e. the
relevant natural person who holds the position of senior managing official
duly signed by the Authorized Signatory.
Political
VI. Certificate from the Election Commission confirming that “the political
Parties,
party is registered under section 29A of Representation of people Act,
1951 Representation of people Act, 1951 (43 of 1951)”.
VII. Memorandum / Rules and bye-laws / regulations / Constitution of the
political party, containing specific provision as required under sub-section
(5) of Section 29 A of the Representation of people Act, 1951 in the exact
terms, which reads “…………… (name of the party) shall bear true faith
and allegiance to the Constitution of India as by law established, and to
the principles of socialism, secularism and democracy and would uphold
the sovereignty, unity and integrity of India”. The copy of the party
Constitution should be duly authenticated on each page by the General
Secretary / President / Chairman of the Party with seal.

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1. KYC Documents of all Beneficial Owners and Power of Attorney holders (1)
Certified copy of any one OVD, (2) PAN or Form 60 (3) Photograph & (4) Customer
Information Sheet or CIS.
2. Limited Liability Partnership (LLP) Deed
3. Registration Certificate from Registrar of Companies (ROC) along with DPIN of
the Partners
LLP
4. Proof of Address of Registered Office of LLP
5. Certificate of Incorporate of LLP
6. PAN of the LLP
7. Resolution of the Partners for Opening Current Account with the Bank
8. A declaration containing the names of all the beneficial owners together with their
shareholding / controlling interest / stake duly signed by the authorized signatory.

1. Registration Certificate 2. Trust Deed 3. PAN of the Trust

4. Permanent Account Number or Form 60 issued to the person holding POA on its
behalf and in case Permanent Account Number is not submitted an Officially Valid
Document shall be submitted.

Other Documents
5. A declaration containing the names of all the Beneficial Owners together with
their shareholding / controlling interest / stake duly signed by the authorized
signatory
6. Copy of relevant extracts of trust deed with special emphasis on the power of the
Trust
trustees to sign cheques, delegation of authority, borrow money etc.
7. A copy of the Resolution
8. Power of Attorney granted to transact business on its behalf (wherever
applicable),
9. PAN of Trustees, Executors, Administrators, etc. of all Related Persons or
Beneficial Owners,
10. Separate Annexure for each Beneficial Owner to be obtained.
11. Proof of current address
All Trust Accounts to be invariably assigned “High Risk”

Meaning of Beneficial Owner

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1. Where the client is a company, the beneficial owners is the natural person(s), who, whether
acting alone or together, or through one or more juridical person, has a controlling ownership
interest or who exercises control through other means.“Controlling ownership interest” means
ownership of or entitlement to more than twenty five percent of shares or capital or profits of the
company; “Control” shall include the right to appoint majority of the directors or to control the
management or policy decisions including by virtue of their shareholding or management rights
or shareholders agreements or voting agreements.
2. Where the client is a partnership firm, the beneficial owner is the natural person(s), who whether
acting alone or together, or through one or more juridical person, has ownership of/entitlement to
more than fifteen percent of capital or profits of the partnership
3. Where the client is an unincorporated association or body of individuals, the beneficial owner
is the natural person(s), who, whether acting alone or together, or through one or more juridical
person, has ownership of or entitlement to more than fifteen percent of the property or capital or
profits of such association or body of individuals
4. Where the client is a trust, the identification of beneficial owner(s) shall include identification of
the author of the trust, the trustee, the beneficiaries with fifteen percent or more interest in the
trust and any other natural person exercising ultimate effective control over the trust through a
chain of control or ownership. As per modifications, all settlors, trustees, beneficiaries or class of
beneficiaries (irrespective of the size of their interest in the trust) and any other natural person
exercising ultimate effective control over the trust are to be treated as controlling persons for the
purposes of due diligence procedures.

(f) Where the client is a company listed on a stock exchange, it is not necessary to identify and
verify the identity of any shareholder or beneficial owner of such companies.

The details like name, address, percentage of right to profit/ownership, KYC details like
proof of identity, proof of address, etc., of each of the beneficial owners would be required
to be captured and these details are required to be incorporated in the CBS.
FCRA Account
Foreign Contribution (Regulation) Amendment Act 2020 mandates that every person/NGO/
Association (hereinafter called the “entity” that has been granted FCRA certificate of registration
or permission u/s 12 of the Act shall open a “FCRA Account” at SPECIFIED BRANCH. Central
Government vide notification dated 29.09.2020 has notified New Delhi Main Branch (henceforth
NDMB) of SBI, 11, Sansad Marg, New Delhi-110001 as the SPECIFIED BRANCH. Applicant may
approach either the nearest SBI Branch or any other SBI Branch of their choice for taking action
with regard to opening of their “FCRA Account” at NDMB.

49
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In terms of FCRA (Amendment)-2020, an entity can maintain the following two accounts:
i) FCRA Account, to receive foreign contribution – Only one account at SBI New Delhi
Main Branch (NDMB).
ii) ii) Utilization Accounts – One or more accounts at any bank / branch.

a. Every entity which has been granted a certificate or prior permission under the Act, shall receive contribution into
the “FCRA Account” at specified Branch only.
b. The FCRA account shall be opened in State Bank of India, New Delhi Main Branch (NDMB), as specified by
Central Government.
c. Such entity may also open another “FCRA Account” in any of the scheduled banks for keeping or utilisation of
fund, received in the “FCRA Account” at NDMB.
d. Such entity may also open one or more accounts in the scheduled banks to which it may transfer, for utilising the
foreign contribution which has been received from “FCRA Account in NDMB” or another “FCRA Account”.
e. The period from 29.09.2020 till 31.03.2021 was treated as a transition period to facilitate opening of “FCRA
Account” in the State Bank of India, New Delhi Main Branch (NDMB).
f. No funds other than foreign contribution shall be received or deposited into any account other than “FCRA Account”
in SBI, NDMB, after 31.03.2021 or from the date of opening of “FCRA Account” in NDMB, whichever is earlier.

Branches shall endeavour to open utilisation account with our Bank. Any FCRA-registered entity,
which receives donation/contribution from abroad cannot further transmit it to any non-FCRA
NGO/entity. No local contributions can be received in an FCRA Account of FCRA registered
entity.

Obtention of Balance Confirmation of Balances in Current Account

Branches will send the Statement of Accounts for Current Accounts of
Current Government/Quasi Government Bodies invariably to the customer at monthly
Account of intervals either by way of hard copy or soft copy to the registered email of the
Government Department within 10 days of the close of the month, and also advise the concerned
/Quasi Department to contact the Home Branch, in case of discrepancy. Branches will
Government obtain the confirmation from the concerned Department on the correctness of
Bodies: entries and balance in their Current Account, within 15 days of the close of the
month such that fraudulent transactions, if any, are revealed at the initial stage itself
and remedial action initiated.
Current Branches will send the Statement of Accounts for Current Accounts with OD
Account facility/debit balance to the customer either by way of hard copy or soft copy to the
with registered email of the customer, and also advise the customer to contact the Home
Overdraft Branch, in case of discrepancy. Branches will obtain the Balance Confirmation as

50
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facility/debit on 31st March every year from the concerned customer on form COS 48 bearing
balance the date and duly signed by the customer.
If the Mobile Number/e-mail is registered in the Current Account, following
SMS/mail will be sent to customer by monthly / quarterly as “Your Current Account
Balance as on **/**/*** is Rs. *******. If any discrepancy is observed, you may inform
to your Home Branch within 15 days of this SMS/mail, otherwise it will be treated
Current as balance is correct as on the given date.
Account Log records of sending SMS/ email to the customer will be maintained by GITC for
with credit future reference. If the Mobile Number/e-mail is not registered in the Current
balance Account, Branch will send duly filled in Balance Confirmation (COS-96) as on 31st
March every year to the customer through post with an instruction to submit signed
copy of the same to the Home Branch within 15 days of receipt of the letter by the
customer, otherwise it will be treated as balance in the Current Account is correct
as on the given date.
Latest Service charges Circular R&DB/BOD-SC/19/2022 – 23 dt 01.10.2022
(i) Current Accounts (For P- Segment) ₹500/- +GST
(AMB - ₹5,000/-)
(ii) For other Current Account (CA) Variant Products)

Normal Current Account (AMB - ₹10,000/-)

Power POS (AMB - ₹5,000/-)
Power Base (AMB - ₹20,000/-) ₹500/- + GST
Surabhi (AMB - ₹10,000/-)
AMB and Regular Current Account (AMB - ₹5,000/-)
Penalty for Smart Collection Account (AMB - ₹25,000/-)
non- Power Pack (AMB-₹5,00,000/-) ₹2,500/- + GST
maintenanc Power Gain (AMB-₹2,00,000/-) ₹1,500/- + GST
e of AMB Power Jyoti (Collection a/c) (AMB - ₹50,000/-) ₹1,000/-+ GST
Gold Current Account (AMB - ₹1,00,000/-) ₹2,000/- +GST
Master Collection Current Account (AMB ₹
1,00,000/-)
Shubharambh Startup Current Account (AMB - ₹1,000/- + GST (No charges for
₹20,000/-) Non-maintenance of AMB upto 12
calendar months from account
open month)
Diamond Current Account (AMB - ₹5,00,000/-) ₹4,000/- + GST per month, if
AMB < ₹2,50,000/-
51
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₹2,000/- + GST per month, if

AMB >₹2,50,000/-
Platinum Current Account (AMB - ₹10,00,000/- ₹8,000/- + GST per month, if
AMB < ₹5,00,000/-
₹4,000/- + GST per month, if
AMB >₹5,00,000/-
(iii) Reimbursement Current Account (For FREE
Corporate Salary Package irrespective of
AMB)

Account Current Account- PB

Keeping Current Account, Cash Credit/Overdraft-Limit ₹550/-+ GST
Charges per exceeding ₹25000/-
annum Reimbursement Current Account (For CSP Free
irrespective of AMB)

Current Account (AMB ₹10,000/-) Up to ₹25000/- per day

Power POS (AMB ₹5,000/-+) :Free
Power Base (AMB ₹20,000/-)

Smart Collection Current Account (AMB ₹ Free Cash Deposit - NIL

25,000/-)
Free up to ₹15 lakh per month.
Power Gain (AMB ₹2,00,000/-)
Cash (Both Home and Non-Home)
Deposit Power Pack (AMB ₹5,00,000/-) Free up to ₹60 lakh per month.
Transaction (Both Home and Non-Home)
s Charges Regular Current Account (AMB ₹ 5,000/-) Free up to ₹ 5 lakh per month
Surabhi CA (AMB ₹ 10,000/-) @
Shubharambh Startup Current Account (AMB - Free up to ₹ 15 lakh per month
₹20,000/-) @
Master Collection Current Account (AMB ₹ Free up to ₹ 10 lakh per month
1,00,000/-) @

Gold Current Account (AMB ₹1,00,000/-) Free up to ₹25 lakh per month
@

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Diamond Current Account (AMB ₹5,00,000/-) Free up to ₹ 100 lakh per month
@
Platinum Current Account (AMB ₹10,00,000/-) Free up to ₹ 200 lakh per month
@
Cash Deposit Charges Beyond free limit ₹0.75 per ₹1,000/- + GST
Minimum ₹50/- + GST Maximum
₹20,000/- + GST
Maximum Limit for deposit of cash at non-home branch is ₹5 lakh per day.
Thereafter, Branch Manager of Non-home branch is vested with the powers to
accept more cash.
@Inclusive of cash deposited in CDM, Recycler, GCC, Home & Non-Home)
Power Jyoti (MAB ₹50,000/-) (CGM of the
Circle has the discretion to reduce charges by
₹60/- + GST per transaction.
₹ 20/- per transaction. No additional Cash
Handling Charges)
*Service charges for Cash Deposit in Cash Credit Account are dealt with
separately

CURRENT ACCOUNT PRODUCTS

CENTRALISED FUNDING CUM DISTRIBUTED LIMITS (CFDL-SB) & CFDL- CA)

Government Departments/Autonomous Bodies for an efficient and comprehensive
Target
fund management system
Group

• A branch shall be identified for overall control of the entire facility which will
be termed as ‘Nodal Branch’ which shall have a Main Account for the
customer. Other Branches which are to provide services at other locations
will be termed as ‘Local Branches’
• ‘Main Account’ will be opened at the Nodal Branch which can be a Savings
Features
or Current Account. Facility of MODS/CLTD facility may be activated on
these accounts. All Funds will be maintained in this ‘Main Account’ by the
Client Department.
• ‘Subsidiary Accounts’ will be opened at ‘Local Branches’. These would be
Current Accounts with zero balance and cheque book facility. All accounts

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would be opened under the same CIF with Parent/Child relationship between
Main Account and Subsidiary Accounts at different Branches.
• Overdraft limits will be allocated in ‘Subsidiary Accounts’ centrally by the
Nodal Branch through a file upload system against the corpus maintained in
the Main Account. No Debit in the Main Account shall be allowed by any
Branch, other than the Nodal Branch.
• Push and Pull sweep will have to be set-up between the Main Account
and the Subsidiary Accounts for linking the two and sweep of balances
from the Subsidiary Accounts to the Main Account at the end of day.
• Multi City Cheques issued in the “Subsidiary Accounts” would be without any
limit
• Payments will be made by the Local Branches of Subsidiary Accounts during
the day.
• The debit balance in the Subsidiary Accounts would be zeroized by a daily
sweep from the Main Account.
• In case of insufficient balance in the Main Account, MOD/CLTD will break
automatically through a reverse sweep on LIFO (Last in First Out) basis.

At the end of the day, the Balance in all Subsidiary Accounts will become Zero i.e.,
debit/ credit balances in Subsidiary Accounts will be swept to the Main Account.

The Drawing Power in the Subsidiary Accounts would be reduced by the amount
utilized during the day. Only the residual Drawing Power is now available for further
withdrawals.

The Client Department/ Organization can be provided with CINB View Rights of all
the accounts i.e., Central Account, CLTD and Subsidiary Accounts to regulate/
monitor real time transactions.

Local Branches may also provide INB facility on Subsidiary Accounts as per
arrangement with the customer.

Daily MIS will be made available by the Nodal Branch with details such as the
balance in Main Account, CLTD accounts, total debit in Subsidiary Accounts with
day end balances etc.

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A validation is built in the system so that the overall limit cannot exceed the
outstanding balance in the Main Account and the MOD/CLTDs taken together.

A Dashboard is provided, over the internet, to the Client Department/ Organization

for viewing the utilization of funds across all Units for having an overview of funds
allocation and monitoring funds management. The information in the Dashboard
will be updated every morning with the status of the previous day’s closing balances
in the Main account/total of MODs/total funds available/ subsidiary accounts wise
details/ pie chart for graphical look.

NEW CURRENT ACCOUNT VARIANTS

FEATURES REGULAR GOLD DIAMON PLATINUM
D
MAB Rs. 5,000/- 100,000/- 5,00,000 10,00,000/-
Free Rs 5 lakhs per Rs. 25 lakhs Rs. 100 Unlimited Free
monthly month per month lakhs (Inclusive of
Cash (Inclusive of (Inclusive of per month cash deposited
Deposit limit cash cash (Inclusive in CDM,
deposited in deposited in of Recycler, GCC,
CDM, Recycler, CDM, cash Home & Non-
GCC, Home & Recycler, deposited Home
Non-Home GCC, Home in Branches)
Branches) & CDM,
Non-Home Recycler, There after
There after card Branches) GCC, card rates:
rates: Currently Home & Currently ₹0.75 per
₹0.75 per There after Non- ₹1,000/- +
₹1,000/- + GST, card rates: Home GST,
Minimum ₹50/- + Currently Branches Minimum ₹50/- +
GST Maximum ₹0.75 per ) GST
₹20,000/- + GST ₹1,000/- + Maximum
GST, There ₹20,000/- + GST
Minimum after card
₹50/- + GST rates:
Maximum Currently
₹20,000/- + ₹0.75 per
GST ₹1,000/- +
55
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GST,
Minimum
₹50/- +
GST
Maximum
₹20,000/-
+ GST
Free cheque 50 per month 300 per 700 per 1500 per month
Leaves month month
NEFT/RTGS Normal Charges Unlimited Unlimited Unlimited Free
(Free through Free Free
Internet/Mobile
Banking) #
Demand Normal Charges *50 drafts Unlimited Unlimited Free
Drafts free Free
per month
Free Cash Nil Nil Nil Nil
Pick
Up Facility
Charges for Rs.500 + GST Rs. Rs.4000+ Rs. 8000+GST
Non per month 2000+GST GST per per month:
maintenance per month month: if if MAB
of AMB MAB<Rs. <Rs.5,00,000
2,50,000
Rs.2000+ Rs. 4000+GST
GST pe per month:
month: if if MAB
MAB>Rs. >Rs.5,00,000
2,50,000
Maximum Rs 5 Lakh per Rs 5 Lakh Rs 5 Lakh Rs 5 Lakh
Cash day per day per day per day
Deposit
Limit at Non-
Home
Branch@@
Cash Max. Limit: Up Max. Limit: Max. Max. Limit: Up to Rs.
withdrawal to Rs. 1 lakh per Up to Rs. 1 Limit: Up 1 lakh per day
56
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at Non-Home day (self only) lakh per day to Rs. 1 (self only) Free
Branch Free (self only) lakh per
Free day (self
only) Free
@@
i. Currency Chest/CAC Branches: Currency chest branches and CAC linked
branches will accept cash from non-home branch customers without any limit.
ii. Other Branches: The Branch Manager of non-home branch will continue be
vested with powers to accept cash exceeding Rs.5 lakh and system will allow this
with supervisory override.

Realtor’s Current Accounts

( Latest Review of Realtor’s CA vide Circular No NBG/TBU-LTP/8/2022 – 23 dt 21.06.2022)
The following Branches are eligible to offer this product:
i) All CAG and MCG Branches.
ii) Branches identified for handling Builder Finance Accounts.
iii) Branches having specialization in handling such business and authorized by
Eligibility
Circle CMC (not below Scale III incumbency)
A Special Agreement between Bank and the Realtor is to be obtained wherein
Realtor will indemnify the Bank. The Agreement is a mandatory requirement as part
of the documents to be executed for opening a Realtors Current Account.
Normally 3 Current Accounts will be opened after completing the due diligence
including Beneficial Owner information of the accounts as per Banks Guidelines.
i) Account 1: Realtors Current Account for receipt of 100% Collections [Auto
transfer to Account 2 and Account 3 in the ration 70:30 at end of day (eod)].
ii) Account 2: Realtors Current Account for deposit of minimum 70% of Collections
Features (funds to be transferred from Account 1). This account will be registered with RERA
Authority.
iii) Account 3: Realtors Current Account for Day-to-Day operations for receiving
30% of Collections (funds to be transferred from Account 1)
However, Realtors may decide for transfer of 30% of Collections to their other
Operating CC/OD account instead of Current Account No.3
Branches should ensure that there should be one designated Bank account for
Special every registered project or registered phase of project and should maintain a
Precautions. Project wise separate file where all documents relating to the project should be
filed.
57
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Realtor will submit the Names (with signature & seal), Address, Mobile Number and
Registration Number of such Charted Accountants, Architects and Engineers
appointed for the designated project, which should be recorded at the time of
opening of the Account and filed in the designated file for the project.
Bank’s concurrence for any change in CA/Engineer/Architect has to be obtained by
the Realtor. Changes, if any, in the certifying entities will be recorded by Branch.
Documents Required: The Realtor has to submit the following documents at the
time of withdrawal from Account 2-:
i) Certificate from the Architect, Engineer and Chartered Accountant practicing,
other than Statutory Auditor of promoter, as per format prescribed by the State
Withdrawal
RERA Authorities, attested by the Realtor. For States, where the format of
from
certificates has not been prescribed by RERA Authorities, Standard Formats of
Account 2:
certificates to be used.
ii) Withdrawal Form cum Undertaking certifying the genuineness of the
CA’s/Engineer’s/ Architect’s certificates
Operations in Account 3 will be as per Regular Current Account.
i) The Branch will cross check the names (with signature & seal), Address, Mobile
Number and Registration Number of the CAs, Engineers, and Architects for the
Project from the Designated File for the Project.
Due
ii) The withdrawal form will then have to be authorized by 2 officers i.e., the Current
Diligence by
Account Desk Officer and Manager (Division)/Branch Manager before executing
Branch at
the transaction.
the time of
iii) The original withdrawal form with copies of certificates of CAs/Engineer/Architect
withdrawal:
should be filled in designated file for the Project and a copy of withdrawal form
should be made part of voucher record.

a) The Realtors Current Account 1 & Current Account 2 are Project specific
accounts and should be closed after the project is completed. Closure of these
accounts is permitted provided:
i) The project has been completed and
ii) Completion Certificate has been obtained from RERA/concerned Govt.
Closure of
Authorities.
Accounts
b) A portal will be provided by BID for tracking the end date of the Projects
(Captured at the time of opening of Account 1 and Account 2).
Branches should keep a track of the Accounts opened as well as end dates from
this portal from time to time and follow up with the Realtors for closure of the
accounts once the project is completed
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`

SURABHI ACCOUNT
Corporates / Institutions / Trusts / Small & Medium Enterprises who manage P F /
Eligibility any other trust account of their employees. Saving & Current Account linked to
Corporate Liquid Term Deposit.
MAB Current Account – Rs.10,000/- (MAB)
Minimum 7 Days, Maximum 36 Months
Sweep-in deposit will be for a predetermined period only, but CLTDs/MODs held
for less than 7 days, no interest payable. The period of deposit to be fixed by the
Features depositor initially and the same is incorporated in the application form. But
threshold limit for auto sweep would be Rs 1 Lac and subsequent deposits
would be in multiples of Rs.10,000/- with a minimum of Rs. 1,00,000/-,
Resultant Balance: Rs.1,00,000/
Account Upto 14 days of opening Nil; After 14 days up to 1-year Rs.1,000/- + GST, beyond
Closing 1 year: NIL, after 1 year to 5 years of opening of accountRs.500/- + GST,
Charges beyond 5 years of opening of account—Free.

Power Jyoti &Variants

Target It can be given to entities such as Recruitment Boards, University & Colleges,
Group Traffic Dept., etc., where small ticket size collections required from different places
• Customized facility to C&I customers for collections of fees, donations, funds
etc.
• MAB: Rs.50,000/-
• Charges for non-maintenance of MAB: Rs.1,000/- + GST per month
• All other services at applicable normal charges
• No Cash Handling Charges, Commission of Rs.60/- + GST per transaction
collected from the remitter
Features • Circle CGM can reduce charges by Rs.20/-.
• Charges are waived for Schools/ Colleges/ Educational Institutes/
Universities/ Examination bodies maintaining an average CASA of Rs. 10
crores or Current Account Deposit of Rs. 5 crores.
• Cash/ Cheque/ Transfers supported
• No OD/ Cheques, Transfers by authorization/ sweep
• Account Closing Charges: Up to 14 days of opening Nil; After 14 days up to
1-year Rs.1,000/- + GST, Beyond 1 year: NIL, After 1 year to 5 years of

59
`

opening of accountRs.500/- + GST, beyond 5 years of opening of account—

Free

Power Jyoti- PUL

Purpose • Pre-uploaded data in CBS, to eliminate input data errors at Branches
• Master Data is pre-uploaded by Home Branch after receiving from
the customer
• On punching the unique reference number in CBS, other fields get
auto populated from the pre-upload data.
• Collection through INB also
• Here, customer will need necessary infrastructure to capture the
remitter’s data, which is required to be submitted to Bank
immediately before challan is presented. However, it reduces Branch
work.
e-Payment
Target Group: Traders, Service Providers, Jewelers, Restaurants, Merchants, Super
Markets, Hospitals,
Schools, and trusts etc. who may avail this product for payment to their
vendors, distributors and salaries of their employees online without
intervention of branch staff.
USP: Ÿ Enables faster settlement of payables for Corporate viz. salary,
commission etc.
Ÿ Ease of reconciliation by providing customized MIS Reports.
Ÿ Payment advice to the Customer as well as to the Corporate.

Under electronic payments, we offer the following products:

DCR (Direct Credit within SBI), RTGS, & NEFT
Transaction Product Type Rate
Charges: RTGS Rs. 5/- per transaction
NEFT Rs. 5/- per transaction
Direct Credit SBI to SBI Accounts Rs. 2/- per transaction
VIRTUAL ACCOUNT NUMBER (VAN)
TARGET GROUP: Distributors, Pharma Companies, Power Discoms etc. who receive large
number of credits in their accounts.
USP: • Virtual Account Number is a unique MIS tool that enables a Corporate
to make deposits using unique alphanumeric codes rather than the
actual 11-digit SBI account number.
60
`

• Multiple VANs can be mapped to a single collection account and the

Corporate advises its different employees/dealers/vendors to use their
own unique VAN to remit funds to the
• Corporate using VAN as the beneficiary account number.
• This facilitates Clients to capture the MIS in real time for flow of funds
from all their vendors and dealers.
Structure of VAN • 6-character unique Corporate Identifier” + “1-17 Character
Dealer/Customer Identifier of Corporate”.
• The total length of VAN can be up to 23 characters.
• The first 6 characters of the VAN must be unique for each client and
are of alphanumeric nature with minimum 1 alpha character.
• The remaining 1-17 characters of the VAN serve the purpose of MIS
relating to the Remitter of funds and is vital information for the Client.
VAN is used in the system to support the following products:
SBI Cheque
ONLINESBI Transactions - CINB and RINB
NEFT
RTGS
Transaction Charges: Rs. 3/- per Transaction

CASH PICKUP

Cash Deposition (Direct Cash Deposition by ₹ 2/1000 Min ₹20/-per transaction

Clients)
Cash Collection - Cash Pick-up by Agency ₹1.25 / ₹1000 PLUS Agency Charges at
actuals

ARTHIA (Commission Agent) Current Account

Eligibility Non-Individual Customers of all segments, having valid Arthia registration
certificate issued by Agriculture Produce Market Committee (APMC) or
registered under any law relating to APMC or the concerned State.
Undertaking/Certificate to avail exemption under section 194N for TDS in
cash withdrawal above Rs. 1 crore is required to be submitted.
MAB 10000/-

61
`

Charges for Non- Rs.500/- +GST per month

maintenance of
Minimum MAB
Free monthly Cash Rs.15.00 Lakh Per months (Inclusive of cash deposited in CDM,
Deposit limit Recycler, GCC, Home & Non-Home Branches)
Thereafter, card rate: Rs.0.75/- per Rs.1000/- +GST, Minimum Rs.50/-
+GST, Maximum Rs.20000/- + GST
Free cheque leaves Free 100 Cheque Leaves per month after that Rs.3/- per Leave
Cash Pick Up Cash Pickup: Normal Charges + Agency Charges at actuals
Account Rs.500/- + GST
maintenance
charges (annual)
Card Charges: First time: Free
i) Arthia Card
(Commission
Agent) Issuance
charges ii)Rs.125 +GST
ii)Arthia Card
(Commission
Agent) Annual
Maintenance
charges
Any Other Applicable as Regular Applicable
Current Account
as Regular
variant
Current
Charges Account variant
PSB Alliance- Doorstep Banking Services
Bank has launched PSB Alliance- Doorstep Banking Services to customers of all Public Sector
Banks through common platform under supervision of IBA. Services shall be provided to all
individual customers having KYC compliant Savings Bank / Current Account with registered
mobile number in CBS Bank has extended following services under PSB Alliance- DSB Services
– Service Limit (per request) Life Certificate 2 (PPOs) pensions.
Cash pick up (deposit) & Cash delivery (withdrawal) Minimum – Rs.1000/- Maximum Rs.10000/-
Bank has also extended DSB services through Branch Staff channel at 15131branches.

Service Charges : Non Financial – Rs.60/- plus GST Financial : Rs.100/- plus GST

62
`

Savings Bank Account

(Master Circular No.: NBG/PBU/LIMA-SB/1/2022 – 23 dt 27.04.2022)
A Savings Bank Account may be opened by

i) a single person in his or her name or two persons in their joint names, payable
to (a) Either or Survivor (b) Former or Survivor (c) Latter or Survivor (d) Both or
Survivor (e) Both jointly
Eligibility
ii) by more than two persons in their joint names payable to
(a) All of them or the survivors or the last survivor
(b) Any one or more of them or survivors or the last survivor
(c) A particular person during his/her lifetime or survivors

Savings Bank account must not be used for business purpose.

MAB and Presently, charges for non-maintenance of Average Monthly balance has been waived
Penalty for non- for all Savings Bank Accounts.
maintenance of
MAB However, facilities anchored with Average Monthly balance will remain unchanged.
(Please refer to Service Charges Circular No. R&DB/BOD-BO/75/2019-20 dated
01/10/2019 and instructions issued from time to time in this regard)

Savings Bank (Including SURABHI Savings Bank account; Excluding

Financial Inclusion account)
No. of cash deposit transactions in a month 3 transactions free
Cash Deposit Beyond 3 Transactions in a month (Excluding ₹50/-+ GST per Transaction
Transactions Alternate channel transactions)
Charges
No restriction of Cash Deposit at Non-Home for Savings Bank Accounts

Description of Service Charges Charges

Number of free transactions per month (Both

Average Monthly Financial and Non-financial)
Balance (AMB) in Other Bank ATMs
Savings Bank In 6 Metro Our Bank ATM
Other Centres
Centres $
Up to ₹25,000/- 3 5 5
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`

Above ₹25,000/- up to
3 5
₹50,000/-
Above ₹50,000/- up to Unlimited
3 5
₹1,00,000/-
Above ₹1,00,000/- Unlimited Unlimited
Charges for financial
transactions beyond
the set limit (₹ Per ₹20/- + GST ₹10/- + GST
Txn.)

Charges for non-

financial transactions
beyond the set limit ₹8/- + GST ₹5/- + GST NIL
(₹ Per Txn.)

Transaction decline
due to insufficient
₹20/- + GST ₹20/- + GST
balance

One-way inter-changeability allowed for branch transaction on ATM transactions. It

means a customer will be allowed maximum of 10 free debit transactions at 6 Metro
Transaction centres at SBI ATMs and maximum 12 free debit transactions at other centre ATMs
Charges (ATM) (If no transaction at other Bank ATM and no transaction at the branch)
$ Namely, Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad
For All Salary Package accounts including Shaurya Family Pension Accounts at all
locations, irrespective of variants, Free, Unlimited number of transactions at our
ATMs, other Bank ATMs.

Description of Service Service Charge

1. ATM card/ KIT returned by courier ₹100/- + GST
due to wrong address
2. Debit Card Issuance Charges
Classic /Silver/Global/Contactless Free
Debit Card
Gold Debit Card ₹100/- + GST
Platinum Debit Card ₹300/- + GST

64
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Debit Card issued to All Salary Free

Package accounts and International
Gold Debit Card issued to Shaurya
Family Pension Accounts
3. Debit Card Annual Maintenance Charges (Recovered at the beginning of the
second year onwards)
Classic/ Silver/ Global/ Contactless ₹125/- + GST
Debit Card
Yuva /Gold / Combo Debit Card ₹175/- + GST
Platinum Debit Card ₹250/- + GST
Pride/Premium Business Debit Card ₹350/- + GST
My card (Image card) ₹175/- + GST
Signature Free
AMC on Debit Card issued to all Salary
Package accounts & AMC on Free
International Gold Debit Card issued to
Shaurya Family Pension Accounts
4. Debit Card Replacement Charges ₹300/- + GST
5. Duplicate PIN / Regeneration of PIN ₹50/- + GST
through Branch
6. ATM/POS transaction technical ₹20/- + GST
declines attributable to customer (i.e.
lack of balance in account)
7. International Transaction Charges
Balance enquiry at ATMs ₹25 /- + GST
ATM Cash withdrawal transactions ₹100/- min. + 3.5% of Txn. Amt. + GST
Point of Sale (PoS) / eCom 3% of transaction amount + GST
transactions
8. SMS Alert charges per quarter from NIL
Debit Card holders who maintain
average quarterly balance of ₹25000/-
& below during the quarter. NIL
(Waived for all Salary Package
accounts including Shaurya Family
Pension Accounts, Current Account
variants: Regular, Gold, Diamond,
Platinum)
65
`

Not applicable to Small/No Frill Deposits/Basic Savings Bank Account

Holders
Average Monthly Balance (AMB) in Savings
Number of free cash
Bank
withdrawals per month

Upto ₹25,000/- 2
Above ₹25,000/- upto ₹50,000/- 10
Above ₹50,000/- upto ₹1,00,000/- 15
Above ₹1,00,000/- Unlimited
Cash Charges for transactions beyond the free limit
Withdrawals at (₹ per txn.)
₹50/- + GST
Home & Non-
Home Branch,
through Branch Cash withdrawal limit at Non-Home Branches by the customer for self: SB
₹50,000/-, CA: ₹1,00,000/-
Through Internet/Mobile Banking
Average Monthly Balance (AMB) in Savings Number of free transactions
Bank per month
Up to ₹25,000/-
Above ₹25,000/- up to ₹50,000/-
Above ₹50,000/- up to ₹1,00,000/- Unlimited
Above ₹1,00,000/-
Up to 14 days of opening Nil; After 14 days up to 1year Rs.500/- + GST
Account Closing
Beyond 1 Year – Nil, Deceased A/cs – Nil (excluding Basic Savings Bank Deposits,
Charges
Pradhan Mantri Jan Dhan Yojna& Small Accounts opened under Financial
Inclusion)
Savings Plus
To provide an automatic facility to high-net-worth savings bank customers to invest
Purpose their excess funds in SB account in Term Deposits on an ongoing basis. Auto
Sweep TD/STD - 1to 5 yrs.
The auto sweep facility would be operative at intervals a) Once a week, on any chosen
Facility day OR b) Once a month, on any chosen date For MOD Products Minimum amount of
deposit is Rs.10000/-, Minimum Threshold Balance- Rs. 35,000/- Minimum Resultant

66
`

Balance- Rs.25000/- for auto sweep in Savings Bank.MinRs.3,000/- (Total relationship

value i.e., SB+MOD).
BSBD Account
Eligibility
As applicable to regular SB A/c. The Account will be KYC compliant

MAB
Nil

No limit on number of deposits that can be made in a month. Maximum Four

Transaction
withdrawals in a month including ATM withdrawals free of charges. Deposit of Cash at
Charges
Bank Branch will be free.
Only RuPay classic card will be issued free of cost. The Customer cannot have any
Other Features other Savings Bank Account, if he/she has a Basic Savings Bank Deposit A/c. If the
customer already has a Savings Bank Account, the same will have to closed within 30
days of opening a Basic Savings Bank Deposit Account.
Small Account
Those persons who do not have any of the ‘officially valid documents can open
Eligibility Small Accounts with Banks. A Small Account can be opened on the basis of a self-
attested photograph and putting her/his signature or thumb print in the presence of an
official of the Bank.
MAB NA
Aggregate of all credits in a financial year does not exceed Rupees one lakh. Aggregate
of all withdrawals and transfers in a month does not exceed Rupees ten thousand.
Transaction Balance in the account at any point of time does not exceed Rupees fifty thousand.
Charges Foreign remittances are not allowed to be credited unless the identity of the client is
fully established through the production of official valid documents.

These Small Accounts would be valid normally for a period of twelve months.
Thereafter, such accounts would be allowed to continue for a further period of twelve
Other Features
more months, if the account holder provides a document showing that she/he has
applied for any of the officially valid document, within twelve months of opening the
Small Account.
Surabhi Account
Corporates / Institutions / Trusts / Small & Medium Enterprises who manage P F / any
Eligibility
other trust account of their employees. Savings & Current Account linked to
Corporate Liquid Term Deposit.
MAB Current Account – Rs.10,000/- (MAB)

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`

Savings Account –
Metro & Urban Centre Branches-Rs.3000/- (MAB)
Semi Urban Centre Branches- Rs.2000/- (MAB)
Rural Centre Branches- Rs.1000/- (MAB)
Minimum 7 Days, Maximum 36 Months
Sweep-in deposit will be for a predetermined period only, but CLTDs/MODs held for
less than 7 days, no interest payable.
Features The period of deposit to be fixed by the depositor initially and the same is incorporated
in the application form. But threshold limit for auto sweep would be Rs 1 Lac and
subsequent deposits would be in multiples of Rs.10,000/- with a minimum of Rs.
1,00,000/-
Current Account Closure Charges
Up to 14 days of opening of account – NIL, after 14 days up to 1 year of Opening of
Account Closing
account- Rs.500/- +GST, beyond1 years of opening of account—Free
Charges
Saving Bank Surabhi Account Closure Charges:
Up to 14 days of opening of account – NIL, after 14 days up to 1 year of Opening of
account-Rs.500/- +GST, beyond 1 year of opening of account—Free
Pehla Kadam and Pehli Udaan
Pehla Kadam Pehli Udaan
Eligibility Minor of any age. Jointly with the Parent/ Minors above the age of 10 years and
Guardian or Singly by Parent/ Guardian. who can sign uniformly. Singly operated.
MAB Not Applicable
Account Closing Up to 14 days of opening Nil; After 14 days upto 1year Rs.500/- + GST beyond 1 Year
Charges – Nil, Deceased A/cs – Nil
1. Cap on Balance • Rs. 5 lacs in the Account. Rs. 10 lac aggregate deposit on the
CIF of the Minor.
2. Internet Banking
With Enquiry rights and limited transactions. Per day transaction limit of Rs. 5,000/-
3. KYC Requirements: Date of Birth proof of the Minor KYC of the Parent
4. Cheque book:
Features (Pehla Kadam) Personalized cheque book (with 10 cheque leaves) will be issued to
the Guardian in the name of minor u/g guardian.
(Pehla Udaan) Personalized cheque book (with 10 cheque leaves) will be issued if
the minor can sign uniformly.
5. Photo ATM-cum- Debit Card:
(Pehla Kadam) Child’s photo embossed ATM cum-Debit Card with withdrawal/POS
limit of Rs.5,000/. Card will be issued in the name of the minor and Guardian.
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`

(Pehli Udaan) Photo embossed ATM-cum-Debit with withdrawal/POS limit of

Rs.5,000/- will be issued in the name of the minor.
Auto sweep facility with a minimum threshold of Rs. 20,000. Sweep in multiple of Rs
1,000 with a minimum of Rs. 10,000
Personal Accident Insurance Cover (offered by SBI General) for the Parent (in case
of Pehla Kadam account only).
Smart Scholar - Child Plan offered by SBI Life with inbuilt premium waiver benefit and
loyalty additions to fulfil the child’s dreams.

INSTA PLUS SAVINGS ACCOUNT

With the introduction of various electronic banking channels, customers are
increasingly carrying out banking transactions without actually visiting the branch.
Online Savings Bank Account opening using YONO portal / App has been introduced
to facilitate account opening using digital mode. The customers may avail the facility
by downloading the SBI YONO App or use the YONO customer portal
www.sbiyono.sbi. Account can also be opened using YONO Portal at Branch.
a) Resident Indian above 18 years of age who is literate.
b) Customer is a “New to Bank customer” and does not have a CIF.
c) Customer should be physically present in India during the Account opening process.
Eligibility d) Aadhaar bears the current address of the customer. Also, the mobile number
registered with UIDAI should be in possession of customer.
e) Original PAN card is mandatorily to be displayed during the Video Call.
f) Mobile is mandatory whereas Email address is optional
a) Account will have mandate as “singly operated” only. No joint accounts permitted.
b) Debit voucher transaction or any other signature-based services will not be allowed
in the branch. e.g., cheque related services, KYC update etc. as the customer’s wet
signature is not being captured in V-CIP process.
Features
c) Cheque book will not be issued to the customer.
d) In case, the customer desires to avail any signature-based services, the request to
be handled as per SOP.
e) Passbook may be issued, when the customer requests for passbook facility
The SOPs for opening Savings Bank Account on YONO platform are available under
SBI Times -> Useful Links 2 -> Project Lotus> SOPs.
https://projectlotus.sbi.co.in/sops.html
MACT Claims Savings Bank Accounts
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`

Motor Accident Claims Tribunal (MACT) Claims Savings Bank Accounts is for
Applicable
disbursement of compensation to the victims of Road / Rail accidents.
• Individual including Minors (through guardian (in single name can open
account.
• Cheque book/ Debit Card/ Welcome Kit/ Internet Banking/ are available with
the permission of the Court only.
• Only New Accounts will be opened under this product. Conversion from
Salient Features existing SB accounts is not allowed.
• Account transfer is not allowed without the permission of the Court.

Domestic Term Deposits & Recurring Deposits

DOMESTIC TERM DEPOSITS RECURRING DEPOSITS

Period of deposit Minimum period 12 months Maximum 120

7days to 10 years
months

Minimum & Max Minimum: Rs.1,000/- Maximum: No limit Monthly deposits of Minimum Rs.100/- and
in multiples of Rs 10/- No maximum cap.
Payment of interest at
Monthly/Quarterly/Calendar quarter basis
as per customer's requirement. The
interest rate payable to SBI Staff and SBI
Rate of interest as applicable to Bank's
pensioners will be 1.00% above the
TDR / STDR for the period of the RD
applicable rate. The rate applicable to all
Senior Citizens and SBI Pensioners of
Rate of interest age60 years and above will be 0.50%
above the rate payable for all tenors to
resident Indian senior citizens.
“If a Term Deposit (TD) matures and
proceeds are unpaid, the amount left
unclaimed with the bank shall attract rate
of interest as applicable to savings
account or the contracted rate of interest
on the matured TD, whichever is lower.”

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`

TDS TDS at prevalent rate is deducted at TDS is applicable.

source if Form 15G/15H not submitted.
• 5% Margin in case the residual Loan / Overdraft up to 90% available
tenure of Time Deposit is up to 36 against the balance in RD account.
months, as on the date of availing
of loan.
• 10% Margin in case the residual
tenure of Time Deposit is more
than 36 months and up to
60months as on the date of
availing of loan.
• 15% Margin in case the residual
tenure of Time Deposit is more
than 60 months as on the date of
availing of loan.
Loan facility • Only one Demand Loan will be
sanctioned
• against one Time Deposit.
• The DL will get liquidated at the
time of maturity of Time Deposit
and remaining amount of deposit, if
any, will be renewed for the same
contractual tenor of Time Deposit
or as per customer mandate.
• OD Facility to be given against
multiple Time Deposits. Interest on
OD will be charged @1.00% above
the highest rate of interest being
earned amongst all TDRs/STDRs
against which the OD is granted.
Available subject to penalty: Premature withdrawal allowed and rules
a) For Retail Term Deposits up to Rs.5.00 for TDR/STDR are applicable. Penalty
lacs the penalty for premature withdrawal charges for non-Deposit of monthly
Premature
will be 0.50% (all tenors). installments:
closure
b) For Retail Term Deposits above Rs.5.00 For a/c of period 5 years and less --Rs. 1.50
lacs but below Rs.2 Crore, applicable per Rs. 100/- per month
penalty will be 1% (all tenors). For a/c of period above 5 years- Rs. 2.00
per Rs. 100/- per month.

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Scheme SBI Flexi Deposit Scheme Annuity Deposit Scheme

Purpose To enable our customers to place long term To enable the depositor to pay one-time
deposits to earn attractive rate of interest lump sum amount and to receive the same
along with a flexibility in choosing the in Equated Monthly Installments (EMI),
deposit amount. comprising a part of the principal amount as
well as interest on the reducing principal
amount, compounded at quarterly rests and
discounted to the monthly value.
Eligibility Resident individuals, including minors Individuals, including minors in single or
Singly or jointly. Account opening joint names. Singly/Jointly/Jointly with
procedure of a normal RD account will be survivorship benefits.
applicable.
Period of deposit Minimum - 5 years Maximum - 7 years Tenure 36/60/84 or 120 months
Minimum deposit Rs. 5,000/- per Financial Year (plus in Minimum- Based on minimum monthly
amount multiples of Rs. 500/-) minimum of Rs. annuity Rs 1000/- for the relevant period.
500/- at any one instance. Deposits can In no case Minimum Amount of deposit
be made anytime during a month and any should be below Rs 25000/--
number of times. Penalty for default in
payment of minimum deposit will
beRs.50/- per Financial Year.
Maximum Rs.50,000/- in a Financial Year. Maximum: No Limit
Rate of interest As applicable to Term deposits. Interest will Rate of interest as applicable to the Term
be compounded at quarterly intervals, Deposits of tenure as opted by the
based on the balance outstanding on the depositor. Payment of Annuity will start on
last date of each month. Deposit on the anniversary date of the month following
maturity can be withdrawn on the last date the month of deposit. If that date is non-
of the month in which it matures. existent (29th, 30th & 31st), it will be paid
on the 1st day of the next month.
TDS Tax Deduction at Source (TDS), as applicable to normal TD/STD accounts.
Loan facility As applicable to Term Deposits Loan facility upto 75% of the balance
amount of annuity may be granted After
disbursal of OD/loan, further annuity
payment will be deposited in loan account
only.
Premature The rate applicable in case of premature Premature payment allowed for the
closure withdrawal shall be 1.00% below the rate deposits up to Rs.15,00,000/-. Penalty

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chargeable, as applicable to Term

Deposits. In case of death of depositor,
premature payment is allowed without
any limit.
RECURRING DEPOSIT – SBI HOLIDAY SAVINGS ACCOUNT
Purpose Through this offering, Bank’s ‘Online Banking’ customers will be able to preselect a
holiday from Thomas Cook and save for it through a Recurring Deposit (e-RD) with the
Bank. There is a top up offer at the end of the period from Thomas Cook India.
Eligibility All Customers (Domestic, NRE, NRO and staff) having online banking facility.
The Holiday Savings Account involves a simple online process:1) Select the holiday
package from Thomas Cook India’s portal.
(2) log-on to www.onlinesbi.com to start a recurring deposit account with SBI, based
on the cost of holiday.
Special Features The cost of the package tour is split in to 12 monthly installments with a free 13th
installment via a combination of accrued interest and a top-up from Thomas Cook India.
SBI Tax Savings Scheme – 2006
Purpose To enable our customers to place long term deposits to earn higher rate of interest
and to avail the tax benefits under section 80C of Income Tax Act, 1961.
Eligibility Resident assessed for himself/ herself as an individual or in the capacity of the Karta
of the Hindu undivided family, having Income tax Permanent Account Number
The joint account may be issued jointly to two adults or jointly to an adult and a minor
(minor being the second holder) and payable to either of the holders or to the survivor:
Provided that in the case of joint holder type deposit, the deduction from income under
section 80C of the Act shall be available only to the first holder of the deposit.
Period of deposit Minimum - 5 years, Maximum - 10 years
Minimum & Max Minimum deposit amount Rs.1,000/-Maximum deposit amount Not exceeding Rs.
150,000/- in a year.
Rate of interest Card Rates. Special Rates of Staff and Senior Citizen is also applicable.
TDS Applicable
Loan facility Not available.
Premature There will be a lock-in period of five years for allowing premature closure. After
closure completion of five years, premature closure will be allowed as per terms and conditions
applicable to the normal term deposits
SBI Cap gains Plus (Capital Gain Scheme 1988)
Purpose Capital Gains Accounts Scheme 1988 (CGAS) representing capital gains or sale
proceeds of long-term capital assets. Opening of Cap Gains SB account (Account

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‘A’) is important as the scheme provides for withdrawals from accounts opened under
TDR / STDR (Account – B) either on maturity or on pre-mature closure only through
Account-A. For TDRs/STDRs opened under this scheme, MOD facility will not be
available. Regular SB account, if any, in the name of the Cap gains Depositor already
with the Bank will not serve as ‘Account-A’ as envisaged under the Scheme. Such
deposits may be made in one lump sum or in instalments.
Eligibility a) Resident Individuals, Body of individuals b) Non-individuals like Hindu Undivided
Family (HUF), Sole Proprietorship firms; Partnership firms, Companies, Association
of persons etc. c) Non-resident Indians (NRIs) d) Resident but not Ordinary Resident
(RNOR) e) Artificial Judicial persons who have capital gains, taxable in India
Period of deposit Not exceeding 2 to 3 years from the date of transfer of original asset as given below-
Max 24 months - if capital gains are U/s 54, 54 B, 54 F (As declared in Form A by
depositor)
Max 36 months - if capital gains are U/s 54, 54 D, 54 F, 54 G & 54 GB (As declared)
Amount Rs. 1,000 in case of Cap Gains Term Deposits: No Maximum Limit
Rate of interest Rates applicable to normal Savings and Term Deposits. Payment of higher rate of
interest for staff and senior citizen is not permitted.
TDS TDS is applicable. Forms 15G & 15H can be accepted.
Loan facility No loan facility against this deposit is available. This term deposit can neither be
accepted as margin money for non-fund based nor as collateral to any type of fund-
based / non-fund-based facilities.
Premature Payment and closure of TDR/STDR (Account – B) is allowed before maturity. Proceeds
closure to be credited to Cap Gains SB account-Account- A only on the due date, amount of
Cap gains TDR/STDR (Account-B), with interest will be automatically credited to Cap
Gains SB account (Account-A). Form-G is used at the time of complete closure of all
Cap gain plus accounts held by the customer for the subject property, duly approved
by the Assessing Officer, Income Tax, of the Assessee’s (depositor’s) jurisdiction.
Important a) NOATM debit card or Cheque book can be issued for Cap Gains SB account (A/C-
b) Cash withdrawals from Account-A only up to Rs.25,000. Above Rs.25,000 can be
paid only by way of issuance of a crossed DD / banker’s cheque drawn in favour of the
person to whom the depositor intends to make the payment.
c) Accounts under Cap Gains are barred from online opening of account / assigning
Internet banking transaction rights. (Can be mapped only for enquiry rights)
d) Periodical interest (quarterly, half yearly etc.,) can be credited to regular SB account
of depositor. Calendar quarter option will NOT be available for this product.
e) Nomination: Up to 3 Nominees

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f) Transfer of accounts from one Branch to another Branch of same Bank is permitted.
The customer also has the option of conversion of amount deposited under Cap Gains
SB (Account A) to Cap Gains TDR/STDR (Account B) and vice versa freely using form
C.
Withdrawal Withdrawals are permitted from Account-A using FORM-C only. After the first
from Cap Gains withdrawal, subsequent withdrawals are permitted only after the customer submits the
SB a/c details regarding the manner and extent of utilisation of the amount withdrawn from
(Account-A) account on the previous occasion on Form-D. (If the same is not furnished, the Bank
shall refuse further withdrawals). The amount withdrawn shall be utilised by the
depositor within sixty days from the date of such withdrawal and the amount or any
part thereof which has not been so utilised shall be re-deposited in Account-A
immediately thereafter. Form-H is to be used by the legal heirs / nominees of the
deceased customer, duly approved by the Assessing Officer, Income Tax Department
of the Assessee’s (depositor’s) jurisdiction.
Motor Accident Claim Annuity Deposit (MACAD)
Purpose The compensation amount awarded by a Tribunal/Court to victims/claimants of motor
accidents are deposited and paid in monthly annuity instalments comprising part of the
principal amount plus interest.
(i) MACAD Scheme is also extended to victims/claimants of Railway accidents where
an award/order is received from Railway Claim Tribunals/Courts which conform to
features of MACAD.
Eligibility Individuals in single name including Minors (through guardian).
Period of i) 36 to 216 months as per directions of Tribunal/Court.
deposit ii) In case the period is less than 36 months, normal Term Deposit account will be
opened.
Minimum & Max Maximum: No Limit
Minimum: Based on minimum annuity payment of Rs. 1,000/- p.m. for the relevant
period.
Features: 1. No Receipts will be issued to depositors. Only Passbook will be issued for
MACAD. In case of normal Term Deposit (for a period less than 36 months), a
Term Deposit Advice will be issued.
2. Account transfer- Not allowed without the permission of Tribunal/Court
(Branches will ensure that accounts are transferred only with the written
permission of Tribunal/Court).
3. Opening of MACT Claims Savings Bank account is mandatory for this product.

Loan facility No loan or advance shall be allowed against the deposit.

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Premature 1. Premature closure or part lumpsum payment of MACAD will be made with the
closure permission of Tribunal/Court.
2. Premature closure penalty will not be charged.
3. Annuity payment/ Premature closure payment/ Part lump sum payment will be
made only through MACT claims Saving Bank account as per order of the Court.

Floating Rate Bulk Term Deposit

Bank has introduced Floating Rate Bulk Term Deposit Product with interest rate linked to an external
benchmark (Repo Rate) w.e.f. 01.08.2020. The interest rate shall change with the change in Repo
Rate and/or spread during the currency of deposit. The product is available in all Branches and in
Rupee Deposit only. All Individuals (Including NRIs) and Non-individual customers are eligible. Minors
not eligible to open Floating Rate Bulk Term Deposit either singly or jointly with guardian.
Minimum amount of deposit to be accepted is Rs. 2 Crores and in multiples of Rs.1,00,000/- thereafter
and no limit for maximum amount. Tenure of deposit is 91 days to 3 years. However, minimum period
for NRE Rupee Term Deposit shall be 12 months. No interest shall be paid in case of premature
withdrawal of deposit before 91 days. Penalty for premature payment of FRBTD for all tenors will be
1%. It will be applicable for all new deposits including renewals. i) Loan/Overdraft facility would available
up to 90% of FRBTD amount (excluding accrued interest). ii) Interest rate would be 1.50 % p.a. above
the applicable floating interest rate at the time of opening loan account and rising and falling with
changes from time to time. iii) Periodic interest payment, where made, will be credited to loan account
only. iv) Proceeds of deposit shall be credited in the respective loan account. i) Interest rate will be reset
on RBI changing Repo Rate and/or Bank changing the spread. ii) Any change in Repo rate announced
by RBI will be made effective on the Bulk Deposits on the 1st day of the subsequent month.iii) Senior
Citizen, Staff and Staff Senior Citizen will NOT be offered additional interest rate.

“Bulk Deposit” means:

i) Only Single Deposit of Rs. 2.00 cr. and above shall be considered as Bulk deposit ii) Cumulative
amount of term deposits opened under same CIF during the day shall not be considered for classifying
any term deposit as Bulk Deposit.
Salary Package Accounts
(Master Circular NBG/PB/C^ITU-SP/6/2021 – 22 dt. 20.01.2022)
Sl No. Package Target Groups
i Corporate Salary Package Regular employees of Corporates i.e., Private/ Public Sector
(CSP) Corporates, Public Sector Undertakings, Private Institutions,
Promoter/ Founders/ Co-founders of Start-ups etc. and on
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Start Up Salary Package rolls Contractual employees of the Bank as well as Private/
(SUSP) Public/ Govt. Sector Corporates/ Institutions/ Departments.
ii State Government Salary Regular employees of State Government and Union
Package (SGSP) Territories and regular employees of Boards in States and
Union Territories, including Teachers/ Professors of aided
School, Colleges, universities, etc.
iii Central Government Salary Regular employees of Ministries and Departments of
Package (CGSP) Central Government including Defence civilians, employees
of Reserve Bank of India (RBI), National Bank for Rural and
Agricultural Development (NABARD) and Autonomous
Bodies listed in GOI Directory.
iv Railway Salary Package (RSP) Employees of Indian Railways, Kolkata Metro, Konkan
Railway Corporation, Bangalore Metro Rail Corporation Ltd,
Mumbai Metro, Delhi Metro Rail Corporation Limited,
Lucknow Metro, Dedicated Freight Corridor Corporation of
India and other forthcoming Metro Rail Corporation.
v Police Salary Package (PSP) Police personnel of Central Police Organisations, State
Governments and Union Territories, and employees/
Jawans of Home Guards.
vi Defence Salary Package Personnel of Army, Navy and Airforce, Border Road
(DSP) Organisation. Assam Rifles, Rashtriya Rifles. Civilians in
Defence establishments are excluded from
DSP/ICGSP/PMSP and may be offered Central
Government Salary Package (CGSP)

vii Central Armed Police Force Personnel of CRPF, CISF, BSF, NSG, SSB, ITBP,
Salary Package (CAPSP) COBRA, Railway Protection Force/RPSF
(Para Military Salary package
(PMSP) is renamed as CAPSP)
viii Indian Coast Guard Salary Personnel of Indian Coast Guard
Package (ICGSP)
ix. Reimbursement Current Employees maintaining Salary Account under Corporate
Account (RCA) Salary Package (CSP)/ Start Up Salary Package (SUSP) to
get credit of various reimbursements other than salaries
paid by the employer

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x. SPECIAL SALARY PACKAGE CSP for employees of Bank’s Subsidiaries/JVs

FOR EMPLOYEES OF Two variants available
SUBSIDIARIES & JVs OF SBI Diamond – Net Salary upto Rs. 1 lac
Platinum – Net Salary above Rs. 1 lac
(Circular No.: NBG/PB/C^ITU-
CSP/3/2022 - 23 Date: 12 Aug 2022)

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Eligibility of Corporates/Institution for Tie Ups

Category Eligibility Norms Requirement of Tie Up letter
Metro Centres Minimum number of Salaried employees Mandatory
25 with Minimum total Salary credit of Rs
20 lakhs per month

Other Centres Minimum number of employees 20 with Mandatory

Minimum total Salary credit of Rs 15 lakhs
per month

Start Ups No restrictions provided salary accounts Mandatory

for all employees are sourced.

Proprietorship Firms, Salary Package Account facility to Mandatory for approved cases
Partnership Firms, Proprietorship firms/Partnership Firms
under new tie-ups will not be available.
Circles to obtain approval from Salary
Package Dept., Corporate Centre on
case-tocase basis for onboarding
deserving firm(s). CGM (PB) will be
vested with discretion to approve a tie-up
under this category.

While forwarding such proposal, Circles to

ensure that (i) salary accounts of all the
employees including promoters are with
our Bank, (ii) minimum total salary credit
is Rs. 10 lac per month (for proprietorship
firms) and Rs. 15 lac per month (for
partnership firms), and (iii) the firm has
GSTIN/ PAN and formal system of salary
payment.
Trusts, Societies, Only reputed trusts, Societies and Clubs Mandatory for approved cases
Clubs will be allowed on the basis of business
potential. These tie-ups will be done with
the approval from GM (Network).

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Corporates having All CAG/ CCG Companies will be under Not Mandatory
credit relationship with white-listed category.
SBI (through
CAG/CCG)
IT Corporates & In case of Corporates (other than Not Mandatory
Consulting Companies whitelisted), approval from GM (NW) will
(like Microsoft, Cyient, be required.
Qualcomm, PWC etc.)
who do not provide Tie
Up letters
FinTech, E Commerce, In case of Corporates (other than Not Mandatory
Logistic, Law Firms, whitelisted), approval from GM(NW) will
Consulting Firms etc. be required.
Corporates not dealing Opening of Salary Accounts is permitted Not applicable
with SBI or not inclined provided proof of request to Employer for
for a Salary Tie Up crediting salary to CSP account with SBI
is submitted by the employee. However,
the account should be minimum Diamond
category account, given the corporate
falls in Whitelisted Category.

Note Savings Bank Accounts of employees of Corporates who have been

receiving regular salary credit prior to 11th June 2019 may be converted to
CSP, irrespective of the fact whether the Corporate fulfils the above tie-up
criteria or not. However, variant of the CSP Account to be decided as per
the eligibility norms i.e., based on Net Monthly Salary.

Eligibility Norms for Sr. No. Variants Net Monthly Salary Range
different Variants
From Rs. 5,000 to below Rs.
i CSP Lite 10,000

Silver & Contractual Silver

ii Rs. 10,000 - Rs. 25,000

Gold & Contractual Gold

iii Rs. 25,001 - Rs. 50,000

iv Diamond Rs. 50,001 - Rs. 1 Lakh

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Platinum
v Above Rs. 1 lakh

Specially Designed Availability of Non-Personalized and Personalized ATM Cards

ATM Cards Domestic Gold International Platinum International
Classic Debit Card Debit Card
Debit Card
For Silver For Gold For For Platinum Acct
Acct holders Acct holders Diamond holders
Acct
holders

Linking of Employer Tagging with Employer Code has been made mandatory while opening
Code for CSP Salary Account under Corporate Salary Package w.e.f. 21.08.2018 We
Accounts in CBS have two types of Employer Code as under:

• CIF of Employer Corporate: Where Employers have banking

relationship with SBI. Master CIF of the employer will be
Employer Code for relationship in CBS. This code should have
17 characters (with check digits, e.g.,000000+11-digit CIF No.)

• PAN Number of Employer Corporate: Where Employers do

not have any banking relationship with SBI, PAN of the employer
will be employer Code for relationship in the CBS (10
characters).

Employer Code is required for Corporate Salary Package, State

Government Salary Package, Central Govt. Salary Package. Police Salary
Package (PSP) and Railway Salary Package do not require Employer
Code.

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Features of Corporate Salary Package/State Govt. Salary Package/Central Govt. Salary

Package/Railway Salary Package
Variants Platinum Diamond Gold Silver

Eligibility (Net Rs.1,00,000/- Rs.50,001/- to Rs.25,001/- to Rs.10,000/- to

Monthly Salary) and above Rs.1,00,000/- Rs.50,000/- Rs.25,000/-

Min. Balance
NIL
Charges

Complementary
Personal Accident
Insurance (Death)
cover (Available for
active Salary
accounts even if
Rs.20 lakh Rs.15 lakh Rs.5 lakh Rs.1 lakh
balance is zero and
without any
ATM/POS
transaction, terrorist
attack also covered

Additional
Personal Accident Rs.5 lakh on
Rs.2 lakh on Rs.2 lakh on
(Death) Insurance Platinum Debit --
Gold Debit Card Gold Debit
Cover on ATM Card Card
card

Complementary
Air Accident
Insurance (Death)
cover
(Only when the Air Rs.30 lakh Rs.20 lakh Rs.5 lakh
NIL
Ticket has been
purchased using
State Bank Debit
Card/Internet
Banking)
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Additional Air -
Accident
Insurance (Death) Rs.10 lakh on Rs.4 lakh on
Rs.4 lakh on
Cover on ATM Platinum Debit Gold Debit --
Gold Debit Card
Card Card card

Variants Platinum Diamond Gold Silver

Purchase Protection Rs.2 lakh Rs.2 lakh Rs.2 lakh Rs.2 lakh
on Debit Cards

Overdraft up to 2
Month’s Net salary,
Maximum limit Maximum limit Maximum limit
subject to min NIL
Rs.2,00,000/- Rs.1,50,000/- Rs.75,000/-
residual service of 6
months

Concession in locker 25 % of
15% of
charges applicable rate No concession No concession
applicable rate

Multi City Cheques Cheque Leaf charges: NIL

(Payable at par at all
Branches) Payment Charges: NIL
Charges for issue of
Demand Draft Waived

Available for all accounts Free updating at Non-Home Branches

Passbook

Charge on Issue of
Duplicate Account Waived Waived Normal Rates Normal Rates
statement

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A T M cum Debit Free, Free, International Gold Debit Free, Domestic

Card International Card Classic Debit Card
Platinum Debit
Card

▪No annual maintenance charges

▪Add on card for spouse free of cost for joint account holder
Transactions at
ATMs (SBI ATM & Free Unlimited Withdrawal Transactions
Other Bank ATMs)

Auto Sweep Facility

(Available only on Threshold Amount: Rs.35,000/-TDRs/STDRs to be created for a minimum
customers request) amount of Rs.10, 000/- (and in multiples of Rs.1,000) in any one instance.

Available, No Minimum balance, ATM linked to CSP Account, No Account

Reimbursement
keeping charges
Current Account

▪ YONO
▪ Internet Banking (INB)
Digital Platform ▪ Yono Lite: Mobile Banking App
▪ Consolidated Account Statement on registered e-mail to Diamond
and Platinum variant customers
• Cost of Plastic Surgery in burn cases - Maximum Rs. 10 lac
• Transportation of imported medicine - Maximum Rs. 5 lac
• Death after Coma after accident (more than 48 hrs) – Maximum Rs.
2 lac
Add on covers:
• Air Ambulance – Maximum Rs.10 lacs
(Available only if the
• Child Higher Education Cover (for Graduation) age between 18-25
PAI Claim is
Years. – 25% of entitled PAI cover. (If PAI claim is found admissible)
accepted as a valid
- Maximum Rs. 5 lac
claim)
• Girl Child Cover for Marriage (Age 18-25 Years) – 10 % of entitled
PAI Cover. (If PAI claim is found admissible) - Maximum Rs. 5 lac
• Family Transportation (cost of travel incurred by immediate 2 family
members to reach place of accident) - Maximum Rs.20,000/-

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• Repatriation of mortal remains – Maximum Rs.20,000/- • Ambulance

charges- Maximum Rs. 15,000/-
For CSP (lite)
accounts
(net salary between
Rs.5000/- to Benefits as applicable to normal SB accounts
Rs.10000/-)

Features of Start-up Salary Package

Variants Platinum Diamond Gold Silver
Promoters/ Rs.50,001/- to Rs.25,001/- to Rs.10,000/- to
Founders/ Rs.1,00,000/- Rs.50,000/- Rs.25,000/-
Eligibility (Net Co-founders
Monthly Salary) &/or
Rs.1,00,000/-
and above
Min. Balance
Charges NIL

Complementary
Personal Accident
Rs.20 lakh Rs.15 lakh Rs.5 lakh Rs.1 lakh
Insurance (Death)

Additional Personal
Rs.5 lakh on Rs.2 lakh on
Accident (Death) Rs.2 lakh on
Platinum Debit Gold Debit --
Insurance Cover on Gold Debit card
Card Card
ATM Card
Complementary Air
Accident Insurance
(Death) cover
(Only when the Air
Rs.30 lakh
Ticket has been NIL
purchased using
State Bank Debit
Card/Internet
Banking)
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Additional Air
Rs.10 lakh on Rs.4 lakh on
Accident Insurance Rs.4 lakh on
Platinum Debit Gold Debit --
(Death) Cover on Gold Debit card
Card Card
ATM Card*
Purchase Protection Rs.2 lakh Rs.2 lakh Rs.2 lakh Rs.2 lakh
on Debit Cards
Easy Overdraft up Maximum limit Maximum limit NIL
to 2 Month’s Net Rs.2,00,000/- Rs.1,00,000/-
salary, subject to
min residual service
of 6 months

Variants Platinum Diamond Gold Silver

Concession in 15% of No concession No concession
25 % of
locker charges applicable rate
applicable rate

Multi City Cheques Cheque Leaf charges: NIL

(Payable at par at
all Branches) Payment Charges: NIL
Setting up SIs Free
Charges for issue of
Waived
Demand Draft
Available for all accounts
Passbook
Free updating at Non-Home Branches
A T M cum Debit Free, Free, International Gold Free, Domestic Classic
Card International Debit Card Debit Card
Platinum Debit
Card

▪No annual maintenance charges

▪Add on card for spouse free of cost for joint account holder
Transactions at
ATMs (SBI ATM & Free
Other Bank ATMs)

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Maximum limit
of
Rs.1,00,000/-
Withdrawal limit per Maximum limit of Rs.50,000/- Maximum limit of
per day
day at SBI ATMs per day Rs.20,000/- per day

Auto Sweep Facility

(Available only on Threshold Amount: Rs.35,000/-TDRs/STDRs to be created for a minimum
customers request) amount of Rs.10, 000/- (and in multiples of Rs.1, 000) in any one instance

Reimbursement Available, no minimum balance, ATM linked to CSP Account, No Account

Current Account keeping charges
For employees going abroad on official assignment, with facility of multiple
SBI Foreign Travel
loading
Card

▪ YONO
▪ Internet Banking (INB)
Digital Platform ▪ Yono Lite: Mobile Banking App
▪ Detailed account statement on registered e-mail to Diamond and
Platinum variant customers

• Cost of Plastic Surgery in burn cases - Maximum Rs. 10 lac

• Transportation of imported medicine - Maximum Rs. 5 lac
• Death after Coma after accident (more than 48 hrs) – Maximum Rs.
2 lac
• Air Ambulance – Maximum Rs.10 lacs
Add on covers: • Child Higher Education Cover (for Graduation) age between 18-25
(Available only if the Years. – 25% of entitled PAI cover. (If PAI claim is found admissible)
PAI Claim is - Maximum Rs. 5 lac
accepted as a valid • Girl Child Cover for Marriage (Age 18-25 Years) – 10 % of entitled
claim) PAI Cover. (If PAI claim is found admissible) - Maximum Rs. 5 lac
• Family Transportation (cost of travel incurred by immediate 2 family
members to reach place of accident) - Maximum Rs.20,000/-
• Repatriation of mortal remains – Maximum Rs.20,000/- • Ambulance
charges- Maximum Rs. 15,000/-

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Features of Police Salary Package

Variants Platinum Diamond Gold Silver
Salary Accounts of IPS Net Monthly Salary Rs.25,001/- Rs.10,000/- to
officers, selected through Rs.50,001/- to to Rs.25,000/-
Eligibility -Net
Union Public Service Rs.1,00,000/- Rs.50,000/-
Monthly Salary
Commission (UPSC)
and Rank
examination, are eligible in
(Regular, Non-
Platinum variant under
Civilian
PSP at induction level itself
employees of
Or
Police)
Net Monthly salary
above Rs. 1,00,000/-

Variants Platinum Diamond Gold Silver

Min. Balance
NIL
Charges
Complementar
y Personal
Accident
Insurance
(Death) cover
(Available for
active Salary
accounts even
if balance is Rs.20 lakh Rs.15 lakh Rs.5 lakh Rs.5 lakh
zero and
without any
ATM/POS
transaction,
terrorist attack
also covered)
for other than
Home Guards
Additional
Rs.2 lakh on
Personal Rs.5 lakh on Platinum Rs.2 lakh on Gold
Gold Debit --
Accident Debit Card Debit card
Card
(Death)

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Insurance
Cover on ATM
Card
Complementar
y Air Accident
Insurance
(Death) cover
(Only when the
Air Ticket has Rs.30 lakh Rs.20 lakh Rs.5 lakh
NIL
been
purchased
using State
Bank Debit
Card/Internet
Banking)
Additional Air
Accident
Rs.4 lakh on
Insurance Rs.10 lakh on Rs.4 lakh on Gold
Gold Debit --
(Death) Cover Platinum Debit Card Debit card
Card
on ATM Card

Purchase Rs.2 lakh Rs.2 lakh Rs.2 lakh Rs.2 lakh

Protection on
Debit Cards

Overdraft up to Maximum limit Maximum limit Maximum limit --

2 Month’s Net Rs.2,00,000/- Rs.1,50,000/- Rs.75,000/-
salary, sub to
min residual
service of 6
months
Variants Platinum Diamond Gold Silver
Concession in 15% of No concession No concession
25 % of applicable
locker charges applicable rate
rate

Multi City Cheque Leaf charges: NIL

Cheques
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(Payable at par Payment Charges: NIL

at all
Branches)
Charges for
issue of
Waived
Demand Draft

Available for all accounts. Free updating at Non-Home Branches

Passbook

A T M cum Free, International Free, International Gold Debit Card Free, Domestic
Debit Card Platinum Debit Card Classic Debit
Card

▪No annual maintenance charges

▪Add on card for spouse free of cost for joint account holder
Transactions at
ATMs (SBI
Free
ATM & Other
Bank ATMs)
Maximum limit of
Rs.1,00,000/- per
Withdrawal
day Maximum limit of Rs.50,000/- Maximum limit of
limit per day at
per day Rs.20,000/- per day
SBI ATMs

Auto Sweep
Threshold Amount: Rs.35,000/-
Facility
TDRs/STDRs to be created for a minimum amount of Rs.10, 000/- (and in
(Available only
multiples of Rs.1, 000) in any one instance
on customers
request)
Reimbursemen Available, no minimum balance, ATM linked to CSP Account, No Account
t Current keeping charges.
Account
▪ YONO
Digital Platform ▪ Internet Banking (INB)
▪ Yono Lite: Mobile Banking App

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▪ Detailed account statement on registered e-mail to Diamond and

Platinum variant customers
• Cost of Plastic Surgery in burn cases - Maximum Rs. 10 lac
• Transportation of imported medicine - Maximum Rs. 5 lac
• Death after Coma after accident (more than 48 hrs) – Maximum Rs. 2 lac
• Air Ambulance – Maximum Rs.10 lacs
• Child Higher Education Cover (for Graduation) age between 18-25 Years.
Add on covers:
– 25% of entitled PAI cover. (If PAI claim is found admissible) - Maximum
(Available only
Rs. 5 lac
if the PAI Claim
• Girl Child Cover for Marriage (Age 18-25 Years) – 10 % of entitled PAI
is accepted as
Cover. (If PAI claim is found admissible) - Maximum Rs. 5 lac
a valid claim)
• Family Transportation (cost of travel incurred by immediate 2 family
members to reach place of accident) - Maximum Rs.20,000/-
• Repatriation of mortal remains – Maximum Rs.20,000/- • Ambulance
charges- Maximum Rs. 15,000/-
Personal
Accident
Insurance Rs. 1 lac
cover to
Home Guards
Revised Classification as per Rank in DSP/CAPSP/ICGSP Accounts.
Silver Gold Diamond Platinum
Lt Colonel, Colonel,
JCOs & Other Lieutenant, Brigadiers, Major
DSP- Army NA
Ranks Captain, Major General, Lt.
General, General
Sea II, Sea I,
Leading Seaman,
Commander,
Petty Officer, Chief
Sub Lieutenant, Captain,
Petty Officer,
Lieutenant, Commodore, Rear
DSP- Navy NA Master Chief Petty
Lieutenant Admiral, Vice
Officer-II and
Commander Admiral and
Master Chief Petty
Admiral
Officer-I

Those sailors who join Navy before they attain majority, DSP accounts can be opened without the
Overdraft facility and Personal Accident Insurance Cover.
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Aircraft Man,
Corporal,
Wing Commander,
Sergeant, Junior
Group Captain, Air
Warrant Officer, Flying Officer,
Commodore, Air
DSP- Air Force NA Warrant Officer, Flight Lieutenant,
Vice Marshal, Air
Master Warrant Squadron Leader
Marshal, Air Chief
Officer, Non-
Marshal
Combatants
(Enrolled)
Asst. Engineer/
Superintendent
Asst.
Engineer/ Joint
Administrative
Director
DSP- GREF Officer, Asst.
(Administration),
(General Executive
Superintendent
Reserve Engineer/
Engineer
Engineering Personnel Below Administrative
NA (Selection Grade)/
Force) also Officer Rank Officer/ Medical
Director
known as BRO Officer II,
(Administration),
(Border Road Executive
Chief Engineer,
Organization) Engineer /Senior
Additional Director
Administrative
General, Director
Officer/ Medical
General
Officer
Recruit, Trainee,
Section Leader, RUPON, DAPON,
Additional
DSP-SFF Deputy Leader, Assistant
Commandant,
(Special Frontier NA Religious Teacher Commandant,
Commandant
Force) LAMA, Company Deputy
Administration
Leader, Political Commandant
Leader
Personnel in Rashtriya Rifles are on deputation from Indian Army and hence
Rashtriya Rifles will be covered under DSP Army and offered DSP variant as per their ranks in
Army.
Naviks, Deputy Commandant (JG),
Indian Coast UttamNaviks, Commandant, Commandant,
NA
Guards Pradhan Naviks, Assistant Director General,
Adhikari, Uttam Commandant Additional Director

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Adhikari, Pradhan General, Inspector

Adhikari, Yantrik, General, Deputy
Uttam Yantrik, Inspector General
Pradhan Yantrik,
Sahayak
Engineer,
UttamSahayak
Engineer, Pradhan
Sahayak
Engineer, Enrolled
Followers.
Commandant,
Second-in-
Buglers Riflemen
Command
and Mule Drivers, Deputy
(Equivalent to
Lance Naik, Commandant,
Major, Lt Col and
Nalband, Assistant
DSP- Col in the Army)
NA Havaldar, Warrant Commandant
Assam Rifles and Personnel at
Officer, Havaldar (Equivalent to Lt
this level are being
Major, Naib and Capt. in the
deputed from Army
Subedar, Subedar, Army)
and DSP Army
Subedar Major
would be offered to
them.
Commandant,
Subedar Major, Second-in-
CAPSP – Inspector, Command,
Personnel of Sub- Inspector, Deputy Director General,
CRPF, CISF, Assistant Sub Commandant, Special Director
NA
BSF, NSG, SSB, Inspector, Head Assistant General, Additional
ITBP, COBRA, Constable, Commandant Director General,
RPF, RPSF Constable, Inspector General,
Enrolled follower Deputy Inspector
General

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Features of DSP/CAPSP/ICGSP
Variants Platinum Diamond Gold
Min. Balance Charges
NIL

Complementary Personal
Accident Insurance (Death)
cover (Available for active
Salary accounts even if
Rs.50 lakh
balance is zero and without
any ATM/POS transaction,
terrorist attack also covered)

Additional Personal Accident

Rs.5 lakh on
(Death) Insurance Cover on Rs.2 lakh on
Platinum Rs.2 lakh on Gold Debit card
ATM Card Gold Debit Card
Debit Card

International
International
ATM cum Debit Card Platinum International Gold Debit Card
Gold Debit Card
Debit Card
Complementary Air Accident
Insurance (Death) cover
(Only when the Air Ticket has
been purchased using State 1 Cr
Bank Debit Card/Internet
Banking)

Permanent Total
Disablement Cover &
Rs. 50 Lakh
Permanent Partial
Disablement Cover
Personal Accident Insurance
(Death) Cover (For Pension
Rs 30 lakh
Accounts of DSP.CAPSP,
ICGSP)
Additional Air Accident Rs.10 lakh on Rs.4 lakh on Gold Debit card
Rs.4 lakh on
Insurance (Death) Cover on Platinum
Gold Debit Card
ATM Card Debit Card
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`

Variants Platinum Diamond Gold

Overdraft up to 2 Month’s Net Maximum Maximum limit Maximum limit Rs.75,000/-
salary, sub to min residual limit Rs.1,50,000/-
service of 6 months Rs.2,00,000/-
(Repayable within 6 months)
25 % of 15% of applicable No concession
Concession in locker charges
applicable rate
rate
Multi City Cheques (Payable at Cheque Leaf charges: NIL
par at all Branches)
Payment Charges: NIL
Charges for issue of Demand
Draft Waived

Available for all accounts. Free updating at Non-Home Branches

Passbook

A T M cum Debit Card Free, Free, International Gold Debit Card

International
Platinum
Debit Card
▪No annual maintenance charges
▪Add on card for spouse free of cost for joint account holder
Transactions at ATMs (SBI
Free
ATM & Other Bank ATMs)
Any number of transactions subject to a
Any number of
maximum limit of Rs.20,000/- per day in
transactions
India and Foreign
subject to a
Currency equivalent of Daily Rupee limit
maximum limit of
Abroad.
Withdrawal limit per day at SBI Rs.40,000/- per
ATMs day, in India and
Foreign Currency
equivalent of Daily
Unlimited free transactions across all Bank
Rupee limit abroad.
ATMs

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Unlimited free
transactions across Rs 2 lacs limit for Point of Sale/ Merchant
all Bank ATMs Establishments.

Rs 2 lacs. limit for

Point of Sale/
Merchant Free uses at POS Debit card on-us/off-us
Establishments. and credit card transactions

Free uses at POS

Debit card on-
us/off-us and credit
card transactions
Auto Sweep Facility (Available Threshold Amount: Rs.35,000/-
only on customers request) TDRs/STDRs to be created for a minimum amount of Rs.10, 000/-
(and in multiples of Rs.1, 000) in any one instance
Reimbursement Current
Available, no minimum balance, ATM linked to CSP Account, No
Account
Account keeping charges

▪ YONO
▪ Internet Banking (INB)
▪ Yono Lite: Mobile Banking App
Digital Platform
▪ Detailed account statement on registered e-mail to
Diamond and Platinum variant customers

• Cost of Plastic Surgery / Burn (only for Gold, Diamond,

Platinum) - Rs. 10 lakhs
• Transportation of Imported Medicine (only for Gold,
Diamond, Platinum) - Rs. 5 lakh
• Death after Coma due to accident (more than 24 hrs) - Rs. 2
Add on covers: (Available only
lakhs
if the PAI Claim is accepted as
• Air Ambulance – Rs. 10 lakhs
a valid claim)
• Higher Education (only Graduation)- 25% of PAI cover,
maximum Rs. 5 lakhs
• Girl Child Marriage (18-25 age) – 10% of PAI cover,
maximum Rs. 5 lakhs

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`

• Family Transportation - Rs. 20,000/- (cost of travel incurred

by immediate 2 family members to reach place of accident)
• Repatriation of mortal remains - Rs. 20,000/-
• Ambulance Charges – Rs. 15,000/
• Xpress Credit Loan insurance cover for SBI loan accounts
(Defence Personnel Covered under DSP/ CAPSP/ICGSP
only) death in action against Anti National Activities/Terrorist
/Naxalite/ Foreign enemyMaximum Rs. 5 Lac
• Additional PAI cover for DSP/CAPSP/ICGSP, death in action
against Anti National Activities/Terrorist /Naxalite/ Foreign
enemy- Maximum Rs. 10 Lac
While onboarding Salary Package customers, some Banks are
adopting “Family Banking concept” and facilitating family members
SBI Rishtey of customers to open Savings Bank accounts with differentiated
(Circular No.: NBG/PB/C^ITU- features from Regular Savings Bank Account. It has been decided
SP/8/2021 – 22 dt 16.02.2022) to introduce Family Savings Bank Account facility “SBI Rishtey” with
the objective of offering competitive features on our Salary
Package.

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Special Customer Type

• Minors can open Savings Bank accounts either singly or jointly with his/ her
guardian or by guardian alone on behalf of his/ her minor ward. Mothers can
also be a Guardian of the minor for opening of Bank accounts. Mothers,
however, will be guardian for the limited purpose of operation of the account
with their minor children.
• Banks cannot open joint accounts with either or survivor/former or survivor
mandate where one account holder is a minor and the other one is major who
might not be a guardian.
• Minors who can adhere to uniform signature and are not less than ten years
old can open accounts in their single name. The minors' accounts opened are
not allowed to be overdrawn and operating staff members will ensure that
accounts always remain in credit. In this way, the minors' capacity to enter into
contract would not be a subject matter of dispute.
• If minor is less than 10 years of age, ID proof and address of the person who
will operate the account shall be obtained with the Account Opening Form. In
cases where minor can operate the account independently i.e. he is of 10
years and above and can sign uniformly, KYC documents for identification and
Accounts of address verification as in the case of any other individual would apply.
Minor Maximum Deposits that can be accepted in the Savings Bank Accounts of
minors in single name is Rs.10,00,000/-. and with guardian is Rs. 20,00,000/-
A separate dispensation is available for Pehli Udaan accounts.
• Deposits in the name of minors, where guardians operate the account,
photograph of guardians should be obtained.
• In case of Savings Bank account in the name of minor, the minor has to
complete certain formalities on attainment of majority. In the absence of
completion of these formalities, the Core Banking Solution (CBS) does not
permit debits in the account. On attaining majority, the following formalities are
to be completed:
i. Erstwhile minor should confirm the balance in his/her account.
ii. Submit PAN / Form 60, a recent photograph and a Certified Copy or
equivalent e-document of any one OVD, occupation and income details, in
addition to a fresh specimen signature.
i. All conditions of Customer Due Diligence need to be fulfilled at
this time.
ii. Declaration with the proof of majority for activation of the
account as a major account. 12

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• All branches should monitor these accounts (accounts where minors have
attained majority) from the daily report (depd0622.txt) sent to them by CBS.
They should intimate the account holders to visit the branch for completion of
formalities.
• RBI has advised that banks can offer additional banking facilities to minors
like INB, ATM/Debit Card, Cheque Book etc, subject to safeguards (risk
perception). Accordingly, the Bank has launched two specially designed
products for minors, namely “Pehla Kadam” and “Pehli Udaan”. Please refer
Circular noNBG/PBU/LIMA-SB/16/2014 – 15 dated 04/09/2014 and
instructions issued from time to time in this regard.
• The risk category of existing accounts opened by minors either singly operated
(aged 10 years and above) or opened with Natural
guardians/Guardians/Mothers as guardians (of any age) will continue as it is
and existing KYC instructions will be followed.

• An illiterate person may open an ordinary Savings Bank account in his sole
name or jointly with other person(s). Where one of the depositors is literate a
chequeoperated joint account payable to ‘any one, survivors or survivor’ or
‘either or survivor’, etc., may be opened in which event only the literate
depositor will be allowed to withdraw moneys from the account by means of
cheques.
• In the case of an illiterate person, the application form for opening of the
account and the relative cash deposit voucher should be filled in by the Teller.
The left-hand thumb impression of the depositor should be obtained on the
Account Opening Form in the place provided for signature of the depositor
Illiterate and on the specimen signature sheets in the presence of a supervising official
Persons authorized to sanction opening of accounts who should attest the thumb
impression in the same manner as the specimen signatures. Brief details of
one or two identification marks, if any, of the depositor, such as a mole or scar,
should be noted on the Account Opening Form under authentication of the
authorized official.
• One copy of the photograph will be pasted on the Account Opening Form and
will be authenticated by the authorized official in the same manner as the
specimen signatures, care being taken to see that part of the authenticating
signature appears on the Account Opening Form and part on the photograph.
• The authorized official will explain the implications and conditions for the
operation of the account to the illiterate depositor and append a certificate to
the Account Opening Form for having done so. A prominent remark or by

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means of a rubber stamp to indicate that the depositor is illiterate will be made
on the Account Opening Form under the initials of a supervising official.
• When an illiterate depositor calls on the Bank for depositing money into his
account, the Teller should fill in the pay-in-slip. The depositor will affix his left-
hand thumb impression in the place provided for his signature. The authorized
official will sign the pay-in slip after personally ascertaining from the depositor
the amount to be deposited in the account and in token of having done so,
affix his initials against the amount mentioned in the pay-in slip.
• Ordinarily, only personal withdrawals against production of the relative
Passbook will be allowed to an illiterate depositor. When he desires to effect
a withdrawal he should call at the Bank and present his Passbook to the Teller.
After the depositor is identified on the basis of the photograph on the Bank’s
record and/ or the identification marks, recorded on the Account Opening
Form, the Teller will fill in the Withdrawal Order Form for the required amount.
The depositor will, thereafter, affix his left-hand thumb impression on the face
of the Withdrawal Order Form at the place provided for the signature of the
depositor and also on the back of the form. Before passing the Withdrawal for
payment, the Passing Official will arrange to call for the depositor and, by
personally referring to the photograph and/ or the identification marks, ensure
that the withdrawal is being in fact made by the depositor himself. He will also
ascertain from the depositor the correct amount of withdrawal and in token of
having done so, affix his initials against the amount mentioned in the
Withdrawal Order Form.
• Account closure: The thumb impression of the depositor on the Savings Bank
account closing form will, in all cases, be witnessed by an independent witness
acceptable to the Bank. Also, the passing official will explain to the depositor
in the presence of the witness that no more money is due to the depositor from
the Bank as the entire balance including interest, if any, has been paid to him
and that the depositor ceases to have any claim on the Bank in regard to his
deposit.
• Accounts of illiterate depositors may be transferred, at their request, from one
branch to another like other accounts.
• Accounts in the names of persons who are deaf/dumb and also illiterate: The
Bank can in such cases preferably open joint accounts to be operated jointly
by the deaf dumb illiterate along with his close blood relations. Where this is
not possible, accounts may be opened in the name of such persons as per
the procedure laid down in the preceding paragraphs.

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• A Blind/ visually challenged person can open ordinary or cheque operated

deposit account in his/ her sole name or jointly with other person(s) or in the
names of sole proprietorship concerns/ firms/ partnerships where a
Blind/visually challenged person(s) is/ are involved. Following Banking
facilities as available to individuals in general are available to the Blind/Visually
challenged individuals as well:
i. Deposit accounts.
ii. ATM Cards
iii. Internet Banking
iv. Safe Deposit Locker
v. Loans
• For opening Savings Bank Account in the name of a Blind/ visually challenged
person two copies of the recent photograph of the Blind/ visually challenged
person should be obtained, one copy to be pasted on the Account Opening
Form and the other on the Passbook duly attested by the authorized official.
• A prominent remark or by means of a rubber stamp indicating that the
depositor is Blind / visually challenged will be made on the Account Opening
Form and in the system under the initials/authentication of a supervising
Visually
official.
Challenged
• If a Blind/ visually challenged person is illiterate, or literate but unable to sign
Persons.
uniformly, his thumb impression should be obtained as a rule on the Account
Opening Form, pay-in slips and the Withdrawal Order Forms and all the other
precautions prescribed for the opening and conduct of accounts of illiterate
depositors will be followed.
• However, if a Blind/ visually challenged person is literate and he is in a position
to sign uniformly, he may put his signature on the Account Opening Form,
pay-in slips and the Withdrawal Order Forms.
• In all cases where a Withdrawal Order Form or a pay-in slip is presented by
the Blind/ visually challenged depositor, a supervising official will ensure, after
making enquiry with the Blind/ visually challenged person, that the correct
amount has been entered therein; in the case of withdrawals, a supervising
official should satisfy himself that the correct amount is paid. An official making
verification of this nature will record on the relative voucher the fact of having
made the necessary enquiries.
• As advised by RBI vide Notification No.DBR.NO.Leg.BC.96/09.07.005/2017-
18 dated 09.11.2017, Bank’s extant instructions/procedures for Sick, Old and
Incapacitated Persons regarding operations of accounts which are as under
shall also be extended to the Visually Impaired Customers:

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(i) Whenever thumb or toe impression of the Visually Challenged account holder is
obtained, it should be identified by two independent witnesses known to the Bank,
one of whom should be a responsible Bank official.
(ii) Where the customer cannot even put his/her thumb impression and also would
not be able to be physically present in the Bank, a mark can be obtained on the
cheque/withdrawal form which should be identified by two independent witnesses
known to the Bank, one of whom should be a responsible Bank official.
(iii) The customer may also be asked to indicate to the Bank as to who would
withdraw the amount from the Bank on the basis of cheque/withdrawal form as
obtained above and that person should be identified by two independent witnesses.
The person who would be actually drawing the money from the Bank should be asked
to furnish his/her signature to the Bank.
• Except for the extra care to be taken in handling cash payment to the blind/
visually challenged depositor, all other rules relating to withdrawing amount
through withdrawal slip are the same for both “literate depositors” and “literate
blind/ visually challenged depositors”.
• When a Blind/ visually challenged person is unable to be present personally
for withdrawal of money, his signature or thumb impression on letter of
authority for withdrawal indicating to the Bank as to who would receive the
money from the Bank should be duly attested by two persons known to the
Bank or a Magistrate under his court seal and the pass-book should
accompany the letter of authority for such withdrawal.
• Self-Operated Cheque Facility Accounts of Visually Impaired persons: Blind/
visually challenged depositors, if they so desire, are allowed to operate their
Savings Bank Accounts, through self-drawn cheques subject to the following:
i. If a Blind/ visually challenged depositor is able to sign cheques consistently.
ii. If the Blind/ visually challenged depositor(s) feel(s) that his/her/their signature may
not exhibit consistency due to the impairment/ some other infirmity and do/does not
mind branding of rubber stamp “CARE – Depositor Blind/ Visually Challenged”, in
order to avoid the ‘cheque being returned unpaid’ on account of ‘difference in
signature’, in such cases, the depositor on receiving the cheque book from LCPC,
should bring it to the branch and make a written request for branding of cheques with
a caution stamp and / or attestation of the thumb impression affixed on the cheques
iii. The Bank official with the written consent of the customer shall arrange for
branding of the caution stamp "CARE-DEPOSITOR BLIND/ VISUALLY
CHALLENGED" on the chequebook (each cheque leaf) to alert bank
officials/operational staff

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iv. The thumb impression of the account holder affixed on the cheque leaves should
be duly authenticated by a bank official under his Signature and SS number along
with the bank stamp/seal on the bottom centre of cheque, (as per the prescribed
format given below in Annexure II).
i. To enlarge the scope of banking facilities to blind/ visually challenged persons,
they may be allowed to issue “Post-dated cheques” to banks and financial
institutions. Crossed Cheque leaves for specific purpose like payment of loan,
utility bills etc. may be issued to blind/ visually challenged depositors, if
requested. Or else, the cheques should be crossed at the time of issue
ii. In case of ‘self-operated cheque facility account’ of blind/ visually challenged
depositors, third party cash payment of self-drawn cheques is permitted at
Home Branches only.
iii. On the request of a Blind / visually challenged account holder, the Bank should
issue cheques in the name of the specified payee to make periodic payments
for the retail loans, utility bills, etc. Bank official will facilitate in filling up the
cheque in the presence of blind/ visually challenged account holder.
iv. At the time of issuing such cheque(s), thumb impression of the account holder
should be duly affixed on the cheque and authenticated by a bank official
under his signature and SS No. along with the bank stamp, where blind/
visually challenged depositor is unable to sign consistently.
v. Where blind/ visually challenged depositor is unable to sign consistently,
Cheques drawn under his/her signatures shall be dishonoured when
presented for payment in case his/her thumb impression affixed on the cheque
is not attested by the Bank official.
vi. For cash withdrawals, blind/ visually challenged person should personally
present herself/himself before the Bank official who will facilitate in filling up
the cheque.
vii. The blind/ visually challenged account holder(s)/ prospective customers need
to be informed/explained about his/her rights and liabilities before/at the time
of opening the account, by reading out to them their rights and liabilities under
the arrangement as carried in Annexure III & IV as applicable.
viii. Declaration on prescribed Format Annexure III & IV duly signed by the account
holder(s), should be obtained in duplicate. One copy filed separately at the
Branch, shall remain in the custody of the Division/Branch Manager, whereas,
the duplicate copy shall be annexed to the Account Opening Form when
forwarding it to the LCPC.
• The Blind/ visually challenged person may operate the account singly (i.e.
selfoperated or through a Power of Attorney) or jointly with any other person
as given below: i. Operation by cheque in the blind/ visually challenged

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depositor's account in sole name may continue to be permitted, under the

signature of a duly constituted ‘Power of Attorney’ of the account holder. ii.
Where the depositor declines to operate her/his account in the 'sole name'
through a Power of Attorney and insists on self-operated cheque facility
account, her/his request may be acceded to as per the terms and conditions
of Self Operated Cheque Facility Account enumerated earlier.

Branches should give proper guidance to the guardians/managers of the Persons

with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities so that they
do not face any difficulties in dealing with the Banking facilities.

a. The Mental Health Act, 1987 provides for a law relating to the treatment and care
of mentally ill persons and to make better provision with respect to their property and
affairs. According to the said Act, “mentally ill person” means a person who is in need
of treatment by reason of any mental disorder other than mental retardation. Sections
53 and 54 of this Act provide for the appointment of guardians for mentally ill persons
and in certain cases, Managers in respect of their property. The prescribed
Persons with appointing authorities are the District Courts and Collectors of Districts under the
Autism, Mental Health Act, 1987.
Cerebral Palsy,
Mental b. Branches should seek for appointment of a Guardian only in such cases, where
Retardation and they are convinced on their own or based on documentary evidence available, that
Multiple the concerned person is mentally ill and is not able to enter into a valid and legally
Disabilities. binding contract.

c. The National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental
Retardation and Multiple Disabilities Act, 1999 provides a law relating to certain
specified disabilities. Clause (j) of Section 2 of that Act defines a “person with
disability” to mean a person suffering from any of the conditions relating to autism,
cerebral palsy, mental retardation or a combination of any two or more of such
conditions and includes a person suffering from severe multiple disabilities. This Act
empowers a Local Level Committee to appoint a Guardian, to a person with
disabilities, who shall have the care of the person and property of the disabled
person.

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d. Branches are advised to take note of the legal position stated above and may rely
on and be guided by the orders/certificates issued by the competent authority, under
the respective Acts, In case of doubt, care may be taken to obtain proper legal advice.
There is no bar for leprosy patients in opening of accounts. However, if such patients
are incapacitated, Bank’s extant Instructions/procedure for operation of Accounts by
Old & Incapacitated Persons would apply, which read as under:

a. Wherever thumb or toe impression of the sick/old/incapacitated account holder is

obtained, it should be identified by two independent witnesses known to the bank,
one of whom should be a responsible bank official.

Patients b. Where the customer cannot even put his/ her thumb impression and also would
Affected by not be able to be physically present in the bank, a mark can be obtained on the
Leprosy cheque /withdrawal order form which should be identified by two independent
witnesses, one of whom should be a responsible bank official.

c. The customer may also be asked to indicate to the bank as to who would withdraw
the amount from the bank on the basis of cheque/ withdrawal form as obtained above
and that person should be identified by two independent witnesses. The person who
would be actually drawing the money from the bank should be asked to furnish his
signature to the bank.

Primary Co-operative Credit Society which is being financed by the Bank.

(PACS)

Khadi and Village Industries Boards (KVIB)

Organizations
are, exempt
Agriculture Produce Market Committees
from the above
rules and
Societies registered under Societies Registration Act, 1860 or any other
hence
corresponding law in force in State or a Union Territory except societies registered
Savings Bank
under the State Cooperative.
can be opened
in their names
Companies governed by the Companies Act, 1956 which have been licensed by the
Central Government under Section 25 of the said Act, or under the corresponding
provision in the Companies Act, 2013 (Section 8) and permitted, not to add to their
names the word "Limited" or the words "Private Limited".

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Institutions and Trusts other than those mentioned above and whose entire income
is exempt from payment of income tax under Income-Tax Act, 1961.
Clubs, Kendriya Vidyalaya, Regimental Funds or Military Units or other similar non-
trading institutions, like Prajapita Brahma Kumari Ishwariya Vishwa Vidyalaya,
Rajayoga Education and Research Foundation etc. for purpose of depositing their
savings, provided their byelaws, rules etc. are acceptable to the Bank and are strictly
adhered to. Their income should also be exempt from Income Tax.
Government Departments/ bodies/ agencies in respect of grants/ subsidies released
for implementation of various programmes /schemes sponsored by Central
Government/ State Governments subject to production of an authorisation from the
respective Government Departments to open Savings Bank accounts.

Development of Women and Children in Rural Areas (DWCRA).

Self-help Groups (SHGs), registered or unregistered, which are engaged in

promoting savings habit among their members.

Farmers’ Clubs – Vikas Volunteer Vahini (VVV).

Savings account can be opened (subject to approval) in the names of Associations,

Clubs, Kendriya Vidyalaya, Regimental Funds or Military Units or other similarnon-
trading institutions, like Prajapita Brahma Kumari sIshwariya Vishwa Vidyalaya, Raja
yoga Education and Research Foundation for purpose of
depositing their savings, provided their byelaws, rules etc. are acceptable to the Bank
and are strictly adhered to. Their income should also be exempt from Income Tax.
Savings Bank accounts can be opened in the name of Hindu Undivided family also.
However, if the HUF is engaged in any business activity only current account will be
opened.
Hindu
Savings Bank accounts can be opened in the name of Hindu Undivided family also.
Undivided
If the HUF is engaged in any business activity only Current Account will be opened.
Family
Normally eldest member of the family will operate the account as Karta of the family.
The following documents are to be obtained for opening of Savings Bank Account in
the name of HUF.
a) PAN or Form 60 of the HUF.

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b) One copy of OVD, containing details of his identity and address, one recent
photograph, and PAN / Form 6 0of the Karta, Customer Information sheet (Part1 of
AOF)
c) Prescribed Joint Hindu Family letter signed by all adult coparceners COS- 38
((Part-A should be obtained from HUFs whose funds relate to business 30 and Part
-B should be obtained from HUFs whose funds do not relate to business. Forms are
attached as Annexures-VI format placed at AnnexureVI).
d) Declaration from the Karta that i) the depositor is the Karta of the joint family and
ii) the deposit belongs to HUF.
e) Account Opening Form (AOF) for Customers other than individuals is to be used.
a. Savings Bank Accounts are treated as inoperative if there are no transactions in
the account for over a period of two years. For the purpose of classifying an account
as inoperative debit as well as credit transactions, induced at the instance of
customers or induced by a third party are considered. In case the customer has given
a mandate for crediting the interest on Fixed Deposit or dividend on shares to the
Savings Bank account, it should be treated as a customer induced transaction. As
such, the account should not be treated as inoperative as long as interest/dividend
is credited to the Savings Bank Account. However, Service Charges levied by the
Bank should not be considered. In case of Inoperative Accounts facilities like
ATM/INB/Mobile banking will be inactivated.

b. Segregation of inoperative accounts is from the point of view of reducing risk of

Inoperative frauds, etc. However, customer should not be inconvenienced in any way, just
Accounts because his account has been rendered inoperative. The classification is only to
bring to the attention of dealing staff the increased/higher risk in the account. The
transaction may be monitored at a higher level both from the point of view of
preventing fraud and making a Suspicious Transactions Report. However, the entire
process should remain unnoticeable by the customer.

c. Operations in Inoperative accounts may be allowed after due diligence as per risk
category of the customer. This includes ensuring genuineness of the transaction,
verification of the signature and identity, etc. First debit in the Inoperative account
should be only through referral / second level authorization.

d. No charge is to be levied in ‘Inoperative’ Account including activation of account.

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e. Interest in Savings Bank accounts should continue to be credited on regular

periodicity in Inoperative accounts as well.

f. To comply with RBI guidelines for becoming more proactive in finding the
whereabouts of the account holders whose accounts have remained inoperative, an
annual review should be carried out of accounts with the balance of Rs.5000/- and
more and in which there are no transaction for more than a year. Branches may
inform the account holders in writing on the prescribed format, to ascertain the reason
for non-operation in the account. If, it is due to shifting of the locality, they may be
asked to provide details of their new accounts to which the balance in the existing
account could be transferred.

g. To reduce the risk in ‘Inoperative Accounts’, the balance in the account is more
than Rs. 25,000/- the following steps should be taken:
i. If the letter is returned undelivered, they may immediately be put on enquiry to find
out the whereabouts of customers or their legal heirs in case of deceased account
ii. In case, the whereabouts of the customers are not traceable, person(s) who
has/have introduced the account holder should be contacted. Contacting the
employer or any other person whose details are available with the Bank may also be
considered.
iii. The account holder may also be contacted telephonically, if the telephone/cell
number is available. In case of non-resident accounts, account holders may also be
contacted through e-mail and confirmations be obtained.

• Inoperative deposit accounts of banks which have not been claimed or

operated upon for a period of 10 yrs. or more are classified as Unclaimed
Deposit.
• Unclaimed Deposit will be transferred to ‘Depositors Education and
Awareness Fund Scheme 2014’ at monthly intervals, through Central
Accounts Office Kolkata.
Unclaimed
Deposits
• Balance of unclaimed deposit up to Rs. 5,00,000/- (Rs five lac only) will be
processed directly by the branches after due diligence and KYC compliance.
For cases having balance over Rs. 5,00,000/- (Rs. Five lacs only), the branch
will obtain sanction from their controllers before activation of the account or
payment of the balance. Sanction will be given by the Controllers only after
branch ensures due diligence and KYC compliance.
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Inoperative deposit accounts of banks which have not been claimed or

operated upon for a period of 10 years or more are classified as Unclaimed
Deposits. For activation/payment of claims the branches/ operating units
should follow the following.
a. Claim by self - Customer visits the branch maintaining his unclaimed
account and submits the Unclaimed Deposits Claim Form duly filled and
signed, along with the available details of the account, recent photographs
and valid Identity and address proof documents. Only KYC compliant
accounts will be entertained
b. Claim by legal heir/nominee - For claim process in respect of deceased
customer accounts, the legal heir(s) can visit the branch and submit the
Unclaimed Deposit Claim Form duly filled and signed, along with the following
documents as proof:
i) Passbook/Term Deposit/Special Term Deposit Receipts (advices) etc
ii) Valid Identity proof of the claimant
iii) Copy of Death Certificate of the account holder, which will be verified with
Original.
Other documents prescribed under the Bank’s procedures for disposal of assets of
deceased constituents will also be applicable in payment of the Unclaimed accounts.
Branches will meticulously follow the Bank’s policy for claim settlement in respect of
deceased and missing persons. Balances in the Unclaimed accounts of deceased
constituents will be governed by the extant delegation of powers and laid down
procedures for the disposal of assets of deceased constituents. Balance of unclaimed
deposit up to Rs. 5,00,000/- (Rs Five lac only) in deceased accounts will be
processed directly by the branches after due diligence and KYC compliance. For
accounts having balance over Rs. 5,00,000/- (Rs. Five lac only), the branch will
obtain sanction from their controllers before activation of the account or payment of
the balance. Sanction will be given by the Controllers only after branch ensures due
diligence and KYC compliance.

SAVINGS BANK ACCOUNTS: INTEREST RATE ON RUPEE DEPOSITS

PAYMENT OF INTEREST:
a. Interest will be calculated on daily product basis and credited to the account at quarterly intervals.
Interest will be paid only if works out to Re 1/- or more. Thereafter, fifty paise and more will be rounded

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off to the next higher rupee and anything less will be ignored. Interest is paid in the months of June
September, December and March every year.
b. In case of accounts frozen by the Enforcement Authorities, Bank shall continue to credit the interest
to the account on regular basis.
c. Interest payment on Staff Accounts (Detailed guidelines have been issued vide Circular no-CDO/P
&HRD-IR/1/2019-20 dated 22/05/2019. Please also refer instructions issued from time to time in this
regard).

• A “member of the Bank’s staff” means a person employed on a regular basis, whether full-time
or part-time, and includes a person recruited on probation or employed on a contract of a specified
duration or on deputation and an employee taken over in pursuance of any scheme of amalgamation,
but does not include a person employed on casual
• The benefit of additional interest rate on deposits on account of being bank’s own staff members,
existing or retired, shall not be available on NRE and NRO deposits.
• ‘Family’ means and includes the spouse of the member/retired member of the Bank’s staff and
the children, parents, brothers and sisters of the member/retired of the Bank’s staff, who are dependent
on such member/retired member, but does not include legally separated spouse.
i. In all cases of staff accounts where the benefit of additional interest is to be provided the bank
shall obtain a onetime declaration from the depositor (employee) concerned, at the time of
opening the account (including TDR) that the monies deposited or which may, from time to
time, be deposited into such account, shall be the monies belonging to the employee.
ii. The benefit of additional 1% interest may be allowed on deposits maintained jointly with other
family members of the employee or retired employee irrespective of whether the employee or
the family member is the first account holder, provided the employee / retired employee
furnishes a declaration that the monies deposited or which may, from time to time, be
deposited into such account, shall be monies belonging to him / her.
iii. Only close family members viz. spouse, son, unmarried daughter, unmarried sister, father,
mother, daughter-in-law, grandson and granddaughter of the employee may be allowed to be
the joint holder of the account along with the employee or retired employee. Son / daughter
will include legally adopted son / daughter also.
iv. The benefit of additional interest rate for Staff members cannot be offered on Saving Bank
accounts standing in the name of HUF even if the Karta of the HUF falls in the Staff category
v. The interest on deposits of societies including cooperative housing societies and associations
formed exclusively by members of Bank’s staff will be paid at rate applicable to the staff subject
to submission of a declaration by society/ association at yearly intervals on 1stApril each year
that monies deposited or which may, from time to time, be deposited into their account belong
to the member of the society/association who are members of Bank’s staff

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vi. Branches have to ensure that the necessary declaration is obtained from the
society/association at the time of opening of such accounts and also at the beginning of
subsequent financial years.

Payment of additional interest is subject to the following conditions:

i. In the case of employees taken over pursuant to the scheme of amalgamation, the additional
interest is allowed only if the interest at the contractual rate together with the 23 additional
interest does not exceed the rate, which could have been allowed if such employees were
originally employed by the bank.
ii. Bank Employees’ Federations in which bank employees are not direct members are not
eligible for additional interest.
iii. In case of Domestic deposits, bank will give its resident Indian retired staff, who are senior
citizens, the benefit of higher interest rates as admissible to senior citizens over and above
the additional interest of not exceeding one per cent payable to them by virtue of their being
retired members of the banks' staff.
iv. Saving Bank accounts of such persons who are not eligible for the 1% additional benefit, the
benefit will be withdrawn immediately on the date of his / her separation from the Bank

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Asset Product – Home Loan all variants and other RE Loans

SBI Home Loan (General Instructions)

Purpose • Purchase a plot of land for purpose of construction of house
• Purchase /construct a new house / flat
• Purchase an existing (old) house / flat or extend an existing house
• Repair or renovate an existing house / flat
• Takeover of Home Loans from other Banks / HFCs / FIs
• Furnishing/interiors as part of the project cost.
• Re-imbursement of investment made from own resources during the
preceding twelve months for purchase of house/flat/construction of
house/repair and extension of house.
➢ If an individual owns two or more houses, singly or jointly then the
exposure for the third house onwards / purchase of plot will be
treated as CRE Home Loans.
➢ Home Loan proposals for acquiring more than two units in the same
Residential Housing project/ Cooperative residential housing
Complex will not be permitted.
➢ Home loans will not be permitted where Builder / Partner / Director
is acquiring flat / house / unit / plot in the project developed by them
/ their Company.
Facility Term Loan / Overdraft
Eligibility Individual(s) over 18 years of age with steady source of income, including
persons engaged in agriculture & allied activities.
Loan Tenor: Up to 30* years subject to liquidation of the Home Loan
before the borrower reaches the age of 70 years.
Sanctioning authority can sanction loans to individuals above the age of
70 years provided son / daughter / spouse, who is a legal heir and
preferably below the age of 50 years, with sufficient income for servicing
the loan repayment, joins as co-borrower / guarantor.
No. of Co-Borrowers: Restricted to maximum 3 including spouse /
children /parents /siblings. However, AGM (Region)/AGM (Branch) can
relax maximum number of co-borrowers provided the repayment is made
through an account with Bank in the joint names of all the borrowers. In
cases where the co-applicants are unrelated to each other, the DGM
(B&O) may permit the relaxation.

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` Eligible Income A. For Salaried Customers:
Form-16 or ITR for last two years will be obtained. The maximum
permissible loan amount will be calculated based on Net Monthly
Income based on
(i) The salary income appearing in the latest salary slip/salary certificate.
PLUS
(ii) other incomes which are either appearing in the Salary Slip or/and
Form-16 or/and IT Return such as variable pay, performance/production
linked incentives, bonus, overtime allowance, reimbursement of
expenditure, etc. may be included in the salary income on basis of the
average of the last two years after excluding taxes and statutory
deductions.
B. For Non-Salaried Customers:
(i) I.T. Returns for last three years will be obtained. The maximum
permissible loan amount will be calculated based on Net Annual Income
appearing in the latest Income Tax Return.

(ii) The average depreciation of last three years or latest one, whichever is
lower can be added to the Net Annual Income of the individuals running
their business on proprietorship basis. (The depreciation amount will be
ascertained on the basis of previous three years ‘Audited Balance Sheet’
of business/activity and the latest audited balance sheet should not be
older than 9 months.)
If ITRs of last two years /more are filed by Applicant/s with IT authority on
the same date/ same financial year, then home loan proposals will be
considered after obtaining administrative approval from DGM (B & O) duly
verifying the ITRs, reason for delay in filing of ITRs and after satisfying
about the genuineness and steadiness of source of income and continuity
of repayment capacity of the borrower/s.
C. For Agriculturist: NAI will be arrived at, based on the nature of their
activity (e.g., farming, dairy, poultry, orchards, etc.), land holding,
cropping pattern, yield etc. and average level of income derived there
from in the area.
( Note: While computing maximum eligible loan amount, expected rent accruals
from the proposed house/flat being let out (net of taxes, cess etc.) may be
reckoned, subject to maximum amount equivalent to the applicant’s Net Monthly
Income (NMI) / Net Annual Income NAI) (SBI Realty Home Loans are excluded)

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` EMI/NMI Ratio NAI EMI/NMI
<= Rs. 1.20 lac 20%
>Rs. 1.20 lac &<= Rs. 3 lacs 30%
>Rs. 3 lacs &<= Rs. 5 lacs 55%
> Rs. 5 lacs &<= Rs. 8 lacs 60%
>Rs. 8 lacs &<= Rs. 10 lacs 65%
>Rs. 10 lacs 70%
LTV Ratio for Home Up to Rs. 30 lacs 90%
Loan and Top Up Loan Above Rs. 30 lacs up to Rs. 75 lacs – 80%
Above Rs. 75 lacs 75%

Stamp Duty, Registration Charges and other documentation charges are permitted to be
added to the cost where the total project cost does not exceed Rs.10 lacs.
While sanctioning Top Up Loan against home loans, care should be taken
to check the LTV ratio applied at the time of sanction of home loan from
the sanction- cum appraisal note and loan documents and regulatory LTV
ratio applicable at the material time. The permissible loan amount (i.e.,
outstanding in existing loans plus proposed Top-up Loan) should not
exceed LTV ratio as stipulated by RBI at the time of origination of the
underlying home loan, based on the realisable value of the underlying
property. For sanction of Top Up loans or extension of mortgage for
education loans and other loans against the underlying property
mortgaged for home loans sanctioned prior to 23.12.2010, LTV ratio
applicable will be the current stipulated LTV ratio.
Quantum of Loan Maximum loan amount will be lowest of these
a) Permissible EMI/NMI ratio
b) Maximum permissible LTV ratio
c) Loan amount applied for
ii) Adding cost of furnishings/ interior to the cost of house/flat:
15% of the cost of the house/flat or Rs. 50 lacs, whichever is lower
iii) The cost of rooftop Solar Photo Voltaic System may be included in the
cost/ agreement to sale value for arriving at the Home Loan eligibility.
Maximum Loan for repairs / renovations should not normally exceed
Rs 10 lacs.
Reimbursement Reimbursement of investment in housing, made during the preceding
12 Months is permissible.

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` Interest Rate: Interest rate on Home Loan and Home Related Loan products are now
linked to the external benchmark i.e., RBI’s Repo Rate w.e.f.
01.10.2019.
• EXTERNAL BENCHMARK BASED LENDING RATE (EBLR) =
EXTERNAL BENCHMARK RATE (EBR) + Credit Risk Premium
• Presently interest rates designed as per the CIBIL Score of the
applicant. Concessions provided if CIBIL score is above 699.
Processing Fees Changes from time to time and is generally waived during the Campaigns.

➢ Consolidated Processing Fee: “0.40% of the loan amount plus applicable

GST subject to a minimum of Rs 10000/-plus GST and maximum of Rs
30000/- plus GST.
➢
ii. For Builder Tie-Up cases, wherever separate TIR and Valuation is not
required: 0.40% of loan amount subject to maximum recovery of Rs
10000/- plus applicable tax and, if in case TIR and Valuation is required
then normal charge as mentioned above will be applicable.

iii. All Central/ State Government Employees and Defence Personnel

willing to avail Home Loan under Privilege/ Shaurya scheme will only be
eligible for waiver of consolidated processing fee and Consolidated
Processing Fee will also be waived for Pradhan Mantri Aawas Yojana
(PMAY), APON GHAR (Loan up to Rs 15.00 lacs) and Home Loan to
Employees of Kerala Government scheme, subject to minimum recovery
of lumpsum of Rs 10000/- + applicable tax (wherever TIR and Valuation
report are required.) In case TIR and Valuation is not required, minimum
recovery clause will not be applicable.

2. In case of Insta Home Top-up Loan and Smart Home Top-Up Loan
scheme, Rs 2000/-+ applicable tax will continue to be recovered.

3. Out of pocket expenses like, CERSAI Registration charges etc., will be

recovered from the borrowers
Pre-Closure Penalty No pre-payment and or pre-closure penalty will be levied on Home Loans
irrespective of the period. (Except HL under Hamara Ghar)

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Security Primary: Ordinarily an equitable mortgage by deposit of title deeds.

Collateral: 1. Provision of accepting liquid securities in lieu of mortgage of
residential unit. 2. Provision of accepting other immovable properties as
security in lieu of mortgage of house/flat financed.

Penal interest @ 2%, where valid mortgage is not created by the

borrowers within 60 days of execution of Sale deed or issue of
possession letter by builders/Occupation certificate, whichever is
earlier. DGM (B&O) is empowered to waive penal interest in cases
where the delay in creating mortgage occurs due to reasons beyond
the control of borrowers.
Validity of Sanction Valid for 3 months (including PAL) from the date of sanction

Credit Home Loan limit upto Rs. 10 lacs: Report from CIBIL (Credit
Information Information Bureau Ltd).
Reports (CIRs) Home Loan limit above Rs. 10 lacs: Two CIRs from the following two
CICs need to be obtained:
➢ CIBIL & ➢ CRIF High Mark Credit Information Services Pvt Ltd.
Repayment Maximum 30 years (or) up to the age of 70 years of the borrower,
whichever is early. For HL Borrowers falling under Commercial Real
Estate (CRE) maximum loan tenor will be 25 years.

Note: Interest applied during the moratorium period should be

recovered.
Moratorium Period A. For Flats:
No. of floors Maximum Moratorium
Up to 7 floors - 18 months
>7 floors and <=14 floors - 24 months
>14 floors and <=21 floors - 30 months
>21 floors - 36 months.

For Mega/Integrated Township projects (approved by our Bank under the

Builder Tie-up arrangement), General Manager (Network) can approve a
longer Moratorium Period of up to 48 months irrespective of the number
of floors in the residential project.

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B. For construction: “Moratorium period from disbursement of first

installment of the Home Loan may be allowed up to 48 months as above
or till 2 months after completion of construction whichever is earlier”.

For purchase of ready built house/flat and purchase of plot for

construction of house under ‘SBI Realty’, the repayment should start one
month from the date of disbursement of the loan.
Insurance of To be obtained in the joint names of the borrower and the Bank for the
Property value of the construction alone, price of land is not to be included in the
sum insured. Insurance cover for a period of 15 years or for the tenor of
the loan, whichever is lower.

NRI HOME LOANS

Purpose As per Home Loan Scheme

Facility Term loan and Maxgain

Eligibility Individual (s) over 18 years of age with a steady source of income who

• are Non Resident Indians (NRIs) holding a valid Indian passport

• are persons of Indian Origin (PIOs) holding a foreign passport

• A person registered as Overseas citizen of India(OCI) holding OCI

card and Foreign Passport

NRIs eligible for Home Loans under the Scheme may include

(i) NRIs, with total work experience of 2 years in India or abroad,

who have taken up jobs / professions / other economic
activity abroad for better prospects
(ii) NRIs with a job contract for a minimum period of 2 years
abroad after completion of 6 months in the employment
[AGM (Region) / AGM Branch may permit deviation in the
Minimum tenure abroad] and presently holding a valid job
contract / work permit.
(iii) Indian citizens working abroad on assignments with foreign
Governments/ government agencies or
International/Regional Agencies like the UNO, IMF, World

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Bank, working with Merchant Navy etc., Officials of the

Central and State Governments and Public Sector
Undertakings deputed abroad on temporary assignments or
posted to their offices (including Indian Diplomatic Missions)
abroad.
Loan Amount Minimum: Rs. 3.00 lacs

Maximum: Maximum permissible loan amount would be determined by

EMI/NMI ratio and LTV ratio criteria as applicable to regular Home
Loans scheme for Resident Indian customers. Clubbing of income of
co-borrowers/guarantors and expected rent accruals on proposed
property will be permitted as per the norms specified for Home Loan
scheme for residents.

Maximum LTV For Salaried Customers: Loan Amount LTV Ratio Upto Rs.75 lacs 80%
Ratio Above Rs.75 lacs 75%

For Non-Salaried Customers: Loan Amount LTV Ratio Upto Rs.75 lacs
75% Above Rs.75 lacs 70%

Repayment Repayment of the loan is required to be made by the borrower within a

maximum period of 30 years subject to the stipulation that the loan
should be liquidated by the age of 60 years or by the age of retirement,
whichever occurs earlier.

The AGM (Region) / (Branch) may permit the repayment of loan upto the age of 70
years provided the approving authority is satisfied about the continuity of the
income. For example many NRIs are working in multilateral organizations like ADB,
UNICEF, which offer pension benefits whereas in some cases retirement age of NRIs
are more than 60 years.

Moratorium As per Home Loan Scheme

period

Rate of As per Home Loan Scheme

Interest

Processing As per Home Loan Scheme

fees

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Insurance As per Home Loan Scheme

Security As per Home Loan Scheme

KYC For NRIs

Compliance
(i) Attested copy of valid Passport and visa.

(ii) Address proof mentioning the current overseas address such as

Utility Bill, Driving Licence, ID Card, Labour Card, Social Card etc.
issued by the authorities in that country or latest Bank Statement
showing overseas address.

For PIOs / OCIs

(i) Attested copy of valid passport and PIO Card / OCI card issued by
Government of India. 248

(ii) Address proof mentioning the current overseas address such as

Utility Bill, Driving Licence, ID Card, labour Card, Social Card etc.
issued by the authorities in that country or latest Bank Statement
showing overseas address. (iii) The attestation of documents may be
done by Fos / Rep. Offices or Indian Embassy / Consulate or Overseas
Notary Public or officials of Branch/Sourcing outfits based in India.

PLACE OF (i) At the place of the proposed property/construction,

AVAILING (ii) At a centre where NRI customers is already having ongoing
THE HOME relationship with one of our Branches,
LOAN: (iii) At the place of residence of India based Power of Attorney
Holder or coborrower/guarantors, if any.

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SBI REALTY
(Circular No.: NBG/RE,H&HD-HL/27/2022 – 23 dt 09.09.2022)

Type of Loan Term Loan only

Eligible To be offered to Salaried & NonSalaried Borrowers (including NRIs)

Borrowers Application of Non-Salaried Borrowers will be processed only upon
approval by CPC Head. (Annexure – II)

Purpose Salaried Borrowers:

a) Purchase of a residential plot located within the municipal/

corporation area of Urban / Metro Centres with population of 1 lac
and above as per the latest available census data for the purpose of
construction of a house. However, Permanent employees of Central
/ State Governments / Public Sector undertakings (PSU) will be
permitted to purchase plots in towns with population of 10000 and
above, within town limits, provided: Maximum Loan Amt: Rs 50 Lacs
for the areas with population group of 10000 to 100000.

b) Purchase of Plots located outside municipal/corporation area will

be permitted only in cases where the plots are allotted/developed by
Government Bodies / Development Authorities such as DDA, HUDA,
BDA, LDA, etc.

However, GM (Network) will be empowered to approve sanction of

loans under SBI Realty Scheme in the projects located outside the
Municipal/ Corporation/Town limits provided;

(i) Marketability of the plot to be financed has been assessed

(ii) In respect of layouts developed by the builders, the project is

approved by the competent authority under Builder Tie Up
Arrangement and the due diligence on the developer and the project
has been carried out.

(iii) Maximum LTV Ratio: 60%

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In addition to purchase of Plots from housing projects undertaken by

Housing Boards, Urban Development Bodies, Builders of National
Repute and Reputed Builders, Purchase of residential plots from
Individual Owners permitted provided the ownership of plot can be
established and a valid mortgage can be created in favour of the
Bank

Non-Salaried Borrowers:

Application of Non-Salaried Borrowers will be processed only upon

approval from the CPC Head.

Non-Salaried borrowers will be permitted for purchase of residential

plots ONLY from housing projects undertaken by Housing Boards,
Urban Development Bodies, Builders of National Repute and
Reputed Builders. Non-Salaried Borrowers will not be permitted
Purchase of Plots from Individual owners.

a) Purchase of a residential plot located within the municipal /

corporation area of Urban / Metro Centres with population of 1 lac
and above as per the latest available census data for the purpose of
construction of a house. Maximum Loan Amt: Rs 50 Lacs for the
areas with population group of 10000 to 100000.

b) Purchase of Plots located outside municipal / corporation area will

be permitted only in cases where the plots are allotted / developed
by Government Bodies / Development Authorities such as DDA,
HUDA, BDA, LDA, etc.

However, GM (Network) will be empowered to approve sanction of

loans under SBI Realty Scheme in the projects located outside the
Municipal / Corporation / Town limits provided:

i. Marketability of the plot to be financed has been assessed

ii. In respect of layouts developed by the builders, the project is

approved by the competent authority under Builder Tie Up

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Arrangement and the due diligence on the developer and the project
has been carried out.

iii. Maximum LTV Ratio: 60%

Loan amount Minimum – Rs. 5.00 Lacs Maximum – Rs. 15 Crores

Maximum time 3 Years (36 Months) from the Date of First Disbursement of the Loan.
period stipulated
for constructions However, an extension of 24 Months beyond stipulated 36 Months
of house may be given for deserving cases with proper justification and
approval from the General Manager (Network). In the event the
construction is not completed within the stipulated period the entire
loan amount will become due.

EMI/NMI norms NAI EMI/NMI Ratio

>Rs. 3 lacs & <= Rs. 5 lacs 40%

> Rs. 5 lacs & <= Rs. 8 lacs 50%

> Rs. 8 lacs & <= Rs. 10 55%

lacs

> Rs. 10 lacs 60%

LTV Loan Limit LTV

Upto Rs 30 lacs 75%

Above Rs 30 Lacs to Rs. 75 70%

lacs

Above Rs. 75 lacs 60%

Security i) Equitable mortgage of the plot of land proposed to be

purchased.
ii) Interim guarantee of an individual good for the loan amount
(to cover the period from the date of sanction and date of
creation of equitable mortgage).

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iii) Property should be non-agriculture and SARFAESI

compliant.
iv) Certified copy of the sale deed held by the seller should be
obtained and verified by the Bank’s advocates during
search.
v) Immediately on deposit of the Title / Sale deed by the
borrower, genuineness of the Title deed / sale deed should
be verified by an advocate on Bank’s Panel before
releasing the interim guarantee

Takeover of Not Permitted However, sanction of Home Loans for simultaneously

Realty Loan from taking over of Realty Loan from other Banks / HFCs and also for
other Banks / construction of a house on that property is permitted.
HFCs

Processing fees As applicable in-Home Loan Scheme

Home Top-Up Loan

Purpose Any personal purpose such as meeting expenditure on
education, marriage, health care, repair/renovation/furnishing
of the house, etc. other than speculative purpose. A certificate
to this effect will be obtained from the customer in the
application itself and no documentary evidence for end use of
the fund will be insisted upon.

Eligibility Category 1: All new Home Loan customers, acquiring Ready

to move in Properties, simultaneously along with new Home
Loans and all existing Home Loan customers having less than
12 months satisfactory repayment track record provided, a.
Home Loan limit is more than Rs. 30 lacs, b. Where the Market
Value of the property as per the Valuation Report obtained at
the time of sanction of Home Loan is minimum 10% more than
the ‘Value’ mentioned in ‘Agreement to Sale’ or ‘Sale
Agreement’. c. Possession of the property has either already

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been taken and mortgage on the property has been created or

possession of the property and mortgage in favour of the Bank
is expected to be completed before disbursement of Top-up
Loan.

Category 2: All existing Home Loan customers with a

satisfactory repayment record of at least one year provided
possession of the house has been taken by the customer and
valid mortgage has been created in favour of the Bank.

Note: - Repayment track record of the borrower in other

Bank/HFCs will continue to be considered for Home Top-up
loan eligibility in case of Takeover loans

Applicants having net annual income of less than Rs.3.00 lacs

would not be eligible for loan under the Home Top Up Loan
Scheme.

Loan Amount For Category-1 customers: Home Top-up Loan amount will be
restricted to the specified percentage to the underlying Home
Loan amount, as mentioned hereunder, subject to minimum
Top-up Loan amount of Rs. 2 lacs and maximum of Rs. 50 lacs:

Home Loan Limit Maximum Top up Loan

Upto Rs. 75 lacs 10% of Home Loan Limit

Above Rs. 75 lacs 15% of Home Loan Limit

For Category-2 customers:

Minimum Rs. 2 lacs &. Maximum: No Upper Limit

Permissible loan Loan Upto Rs 30 >Rs 30 lacs >Rs 75 lacs

amount Amount lacs & =Rs 75
LTV Ratio 90% lacs
80% 75%

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EMI/NMI Ratio Net Annual Income (NAI) Permissible EMI/NMI

Ratio

> Rs. 3.00 lac <= Rs. 5.00 lac 55%

> Rs. 5.00 lac <= Rs. 10.00 lac 605

> Rs. 10.00 lac 70%

Nature of facility (i) Top-up Loans upto Rs. 20 lacs: only Term Loan
facility (No overdraft facility).
(ii) Top-up Loans above Rs. 20 lacs and upto Rs. 2
crores: both Term Loan and Overdraft with reducing
drawing power.
(iii) Top-up Loan above Rs. 2 crores: only Term Loan
facility (No overdraft facility)

No. of loans At any point of time not more than two loans will be allowed to
exist under Home Top-Up Loan Scheme, Second Top up loan
can be considered at any time after disbursement of first Top
up loan.

Tenor The maximum permissible tenor of the loan will be the residual
tenure of underlying Home Loan or 15 years, whichever is
higher, subject to liquidation of the loan before the borrower
attains the age of 70 years.

Security (i) Top-up Loan upto Rs. 5 lacs:

(a) Extension of the mortgage on the residential
property already mortgaged with the Bank will not be
mandatory. However, loan period in such case
should be co-terminus with Home Loan.
(b) However, where the customer wants the loan
tenor of Home Top-up Loan beyond the maturity
period of underlying Home Loan, such loan should
be secured by way of extension of mortgage charge
over House Property.
(ii) Top-up Loan above Rs.5 lacs:

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Extension of mortgage on the residential property

already mortgaged with the Bank will be mandatory

in all cases.

Personal Loan Against Property (P-LAP)

Purpose Any personal purpose such as meeting expenditure on
education, marriage, healthcare, etc. other than speculative
purpose. A self- declaration for the purpose of the loan to
be obtained from the applicants.

Loans under SBI LAP will not be permitted for Business

Purposes.

Facility Term Loan (No overdraft facility)

Eligibility i) Employees, professionals and Self-employed

Individuals, Businessman who are IT assesses,
NRIs who own residential property or commercial
property in his/her own name, spouse/ children/
parent /sibling provided that sanctioning authority
is satisfied about the genuineness and
steadiness of source of income and continuity of
repayment capacity of the borrower.
ii) In case of salaried applicants, verification of
Employer company profile to be carried out and
record of such verification should be kept with the
loan documents

Eligible Property • Non -encumbered, non-agricultural and SARFAESI

compliant, in the name of borrowers/ co borrowers.
Co-Borrowers will be restricted to Spouse/Parents/
Siblings/Children.

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o Residential house/flat in the name of

borrowers/ CoBorrowers in Metro and Urban
areas within municipal limits.
o Self-occupied, Non-agricultural and
SARFAESI compliant Residential house/flat
in the name of borrowers/ Co - Borrowers in
Semi urban and rural area.
• Commercial properties of the borrowers/ Co
Borrowers located in Metro and Urban area within
municipal limits provided:
a) Properties leased to SBI/ SBI Subsidiaries/
PSBs and Private Banks/ PSUs/ Govt.
Departments /listed profit earning Companies/
Companies with ECR of BBB and better.
b) where residual lease period is minimum 5
years.
• Commercial properties of Borrowers /Co Borrowers
located in Semi-Urban, Rural area and properties
located outside municipal areas provided that: a)
these properties are leased to SBI/SBI Subsidiaries
b) residual lease period is minimum 5 years.
• However, Loan under this scheme will not be made
available on Mortgage of an Open Plot, Under
Construction Property and Industrial Property.
• Proposals under P-LAP Scheme will mandatorily be
processed/ assessed by RACPCs/RASMECs at all
BPR centres and by LPCs at all non-BPR centres.
• No second / pari-passu charge will be extended to
other lenders

Security (i) Equitable mortgage of the Property.

(ii) In cases where the commercial properties are
rented out on lease, equitable mortgage on the
property will be created and assignment of rental
receivable will be obtained. In addition to that a
Tripartite Agreement entered between borrower
(lessor), lessee and Bank will be obtained.

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Loan Tenor Minimum: 5 years Maximum: 15 years, subject to conditions

mentioned hereunder,

(i) Where more than 50% of the NMI is coming from

salary, profession or business: Maximum 15 years
or before the eldest borrower attains the age of 70
years provided the expected life of the property, as
certified by an empanelled engineer/architect, is at
least 5 years more than the loan tenor.
(ii) Where more than 50% of the NMI is coming from
Rental Income: Residual lease period of the rented
property or 15 years whichever is lower

Loan Amount (i) Minimum Loan Amount: Rs. 5 lacs

(ii) Maximum Loan Amount: Rs. 7.50 crores, subject

to location of the property as mentioned
hereunder: Within the Municipal Corporation
areas of NCR, Mumbai, Pune, Chennai,
Ahmedabad, Bangalore and Hyderabad centres
and other State Capitals: Rs. 7.50 crores

(iii) At Non-BPR urban centres: Rs.1 crore

(iv) At other BPR centres: Rs. 2 crores

LTV Ratio Loan Limit LTV

Upto Rs 1 Cr 65%

Above Rs 1 Cr and upto Rs 60%

7.50 Cr

Income Minimum Net Monthly Income of Rs. 25,000/ (or Rs. 3 lacs
per annum).

EMI/NMI Ratio NAI EMI/NMI Ratio

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>Rs. 3 lacs <= Rs. 5 lacs 50%

>Rs.5 lacs <= Rs. 10 lacs 55%

>Rs. 10 lacs 60%

Maximum Age Loan under LAP should be liquidated before eldest

borrower attains the age of 70 years.

However, Sanctioning Authority may permit loan tenor

beyond 70 years of age provided son/daughter/spouse,
having age below 50 years, with sufficient income for
servicing the loan repayment, joins as co-borrower/
guarantor to the loan.

Processing Fee 1% of loan amount plus applicable Tax, maximum Rs.

50,000/ plus applicable taxes

Takeover of Loan Takeover proposal from other Banks/HFCs may be

considered selectively with prior Administrative Approval
from DGM (B&O) subject to the following:

a) Takeover of LAP will be permitted from Scheduled

Banks and 504 from select HFCs mentioned hereunder:
HDFC, LICHF, Indiabulls Housing Finance, DHFL, ICICI
Housing Finance, IDBI Housing Finance, PNB Housing
Finance, GIC Housing Finance, Can Fin Housing Finance,
Gruh Housing Finance and Sundram BNP Paribas.

b) Satisfactory due diligence of the borrower(s) and

compliance to the eligibility criteria for availing loan under
LAP as per Bank’s extant guidelines,

c) The borrower should have serviced interest and

installments of the existing loan with present lender
regularly, as per the original terms of sanction,

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d) The Loan should not have been

rescheduled/restructured with the existing lender,

e) The borrower has valid documents evidencing the title

to the house/flat,

f) Obtention of Fore-closure letter from existing lender and

direct disbursement to the existing lender against
acknowledgement.

g) Mandatory interim security by way of Third Part

Guarantee to be obtained wherever creation of mortgage
is likely to be delayed for any valid reasons.

Others 1. Satisfactory CIBIL Check and KYC of all applicants. A

second report from High Mark/Other CICs will also be
obtained.

2. Minimum CIBIL Score of 700. Proposal of applicants

having scores between 600 and 700 and scores between -
1 and 5 (indicating no history or insufficient history) may be
considered subject to approval of deviation by (a) DGM
(B&O) in respect of sanctions by RCC and below, and (b)
Sanctioning Authority in respect of sanctions by ZCC &
above.

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Pradhan Mantri Awas Yojana (PMAY)

Credit Linked Subsidy Scheme (CLSS)
SCHEME CLSS for CLSS (MIG-I) CLSS (MIG-II)
EWS/LIG Scheme for MIG- I / II Scheme for MIG- I / II has
has since been since been discontinued
discontinued from 01st from 01st April 2021
April 2021
Purpose A beneficiary family husband, wife, unmarried sons and/or unmarried
daughters. An adult earning member can be treated as a separate
household provided that beneficiary does not own a pucca house in his /her
name in any part of India.
Facility Term Loan or Maxgain (Above 20 lacs)

CLSS for CLSS (MIG-I) CLSS (MIG-II)

EWS/LIG
Eligibility Max. Household income Max. Household Max. Household Income
per Income per annum per annum
annum Up to Rs. Above Rs. 6 lacs & Above Rs. 12 lacs &up
3 L for EWS & Up up to Rs. 12 lacs to Rs. 18 lacs
to Rs. 6 L for LIG

Max carpet Area 30 sq. Max carpet Area Max carpet Area 200 sq.
mts. For EWS & 60 sq. 160 sq. mts. for Mts. for MIG-II
mts. For LIG. MIG-I

Security As applicable to Normal As applicable to Normal Housing Loan

HL
Women must be sole/co-
owner in the property
(except in case of
construction of house on
existing plot)
Maximum Loans Up to Rs. 6 lacs Up to Rs. 9 lacs, Up to Rs. 12 lacs, Subsidy
eligible for Subsidy Subsidy: 6.50% & Max. Subsidy 4% & Max. 3% & Max. Rs. 2.30 lacs
Rs. 2.68 lacs for Rs. 2.35 lacs for for MIG-II
EWS/LIG MIG-I

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Validity of scheme Up to 31.03.2022 Up to 31.03.2021

Scheme for MIG- I / II has since been
discontinued from 01st April 2021
LTV Ratio As applicable to Normal Housing Loan
EMI/NMI As applicable to Normal Housing Loan. But EMIs for Home Loan
borrowers under CLSS will be reset on credit of full subsidy amount in the
a/c
Repayment As per Normal Housing Loan Scheme. But Maximum tenor of loan on which
subsidy will be calculated is 20 Years.
Mandatory Women must be sole / co-owner in the property.
Exceptions:
1. In case of construction of house on an existing piece of land in sole name
of male member
2. In case of household with no adult female member)
Recent updates •The Central Government has extended the validity of both the verticals
of the PMAY programme, The PMAY-Gramin programme is valid till
31 March 2024. The PMAY -Urban scheme is valid till Dec 2024.
• However, the benefits of CLSS scheme is available to Home Loan
buyers till 30 Sep 2022.
• Benefit under Section 80EEA to promote affordable housing came to
an end on Mar 31 2022.
Abhilasha Home loan scheme repositioning of products under PMAY(U)- CLSS
In August 2019, MoHUA, has nominated SBI as 3rd Central Nodal Agency (CNA). In November 2019,
CLSS Awas Portal (CLAP website: https://pmayuclap.gov.in) has been designed, developed and
implemented by Ministry in collaboration with National Informatics Center (NIC) and CNAs. Further,
the Ministry has also implemented new software for common use by all the three CNAs (NHB, HUDCO
and SBI) for processing of subsidy. In SBI, REHBU, Corporate Centre is now functioning as CNA and
its 17 Local Head Offices (LHOs) are functioning as PLIs (Primary Lending Institutions).

Home Loan Products

SBI EXLUSiF
Eligibility • Total Relationship Value (TRV) of more than Rs 30 lacs
(Deposit+MF+Demat), (Rs 50 lacs for family)
• Net Salary credit of more than Rs 2 lacs per month (Rs 3 lacs for family)
• Home loans of more than Rs 1 Cr (Rs 1.50 Cr for family)
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• For new acquisition - Rs 10 lacs initial deposit with potential to scale it up

to Rs 30 lacs

(Existing Exclusif customers and New Exclusif customers (to be on

boarded) in the following categories
(i)Salaried with Pensionable job:
If age is up to 45 yrs. - Flexipay or Privilege/Shaurya Home loan
If age above 45 years – Privilege/Shaurya Home loans

(ii) Salaried but non-pensionable:

If age is up to 45 yrs. - Flexipay
If age above 45 years – Normal Home loans
(iii) Non-Salaried Exclusif customers:
Differential Offerings to non-salaried scheme.
Loan Amount No minimum limit for Existing Exclusif customers.
For New Exclusif customers: Home Loan of more than Rs 1 cr
Operational 1. Exclusif label on yellow Color File (Sticker/label marked “Exclusif” should
guidelines be locally printed )
2. Priority in Processing
3. Faster TAT
4. Documentation at residence / office as per borrower’s choice
One Point Relationship Manager (Wealth Management)
Contact for
customer
Scheme Home Loans to Non-Salaried Segment Differential Offering
Purpose For construction / acquisition of residential house/flat, takeover of Home Loans
from other Banks/HFCs and repair/renovation of existing house/flat. The
proposed house property may be acquired either in the sole names of
individuals or jointly in the name of the Individuals and their Proprietorship firms,
subject to the condition that the share of Individual applicants in the proposed
property is not less than 50%.

Loans for purchase of residential plot will continue to be processed under SBI Realty
Loan Scheme.
Eligibility Professionals/ Self-Employed/ Businessmen who are over 18 years of age with
a minimum RSM of 6.

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Wherever the applicant is Proprietor of a Proprietorship firm or is one of the

partners in a Partnership Firm or is one of the Directors in a Company, the
firm/Company:
• Should be in existence for at least last 3 years,
• Must have earned Net Profit in the last two years,
• Existing Credit Facilities, if any, should be regular and standard.

Wherever the proposed House Property is acquired in joint names of the

Proprietor and the Proprietary Firm, the firm should be our existing borrower or
a debt free entity.
Facility (i) up to Rs. 20 lacs: only Term Loan
(ii) above Rs. 20 lacs and up to Rs. 3 crores: both Term Loan and Overdraft.
(iii) above Rs. 3 crores: only Term Loan
Security (i) Equitable mortgage of the property, (ii) Guarantee of the Firm if the property
is jointly owned by the Firm and the individual and (iii) Wherever additional
EMI/NMI ratio has been granted Liquid Collateral will be taken.

Quantum of Minimum: Rs. 50,000/-

Loan Maximum: Rs. 50 crores.

LTV Ratio As per Normal Home Loan Scheme

EMI/NMI <= Rs. 1.20 lac 20%

>Rs. 1.20 lac & <= Rs. 3 lacs 30%
>Rs. 3 lacs & <= Rs. 5 lacs 55%
> Rs. 5 lacs & <= Rs. 8 lacs 60%
> Rs. 8 lacs & <= Rs. 10 lacs 65%
> Rs. 10 lacs - 70%
Repayment Maximum 30 years or up to the age of 70 years of the eldest applicant,
whichever is earlier, including moratorium period

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Others The relaxation in EMI/NMI ratio over & above the permissible subject to:
Up to 5% -
LTV ratio up to 65% OR Liquid Collateral of 7.50% of loan amount OR
“IMGC Mortgage Guarantee” cover for loan amount

Above 5% and up to 10%

LTV ratio up to 60% OR Liquid collateral of 15% of loan amount OR “IMGC

Mortgage Guarantee” cover for loan amount + Liquid Collateral of 7.50% of
loan amount.

Above 10% and up to 15%

LTV ratio up to 50% OR Liquid collateral of 25% of loan amount OR “IMGC

Default Guarantee” cover for loan amount + Liquid Collateral of 15% of loan
amount

SCHEME ‘SBI-Tribal Plus Home Loan SBI Maxgain

Special Scheme designed for
Hill/Tribal areas for extending
financial assistance in such areas
to
(a) Purchase or construction of a
new house / flat (without mortgage
of land) As applicable to Home Loans.

(b) Purchase of an existing (old) Extra fund deposited over, and above
Purpose
house / flat which is not more than drawing power can always be withdrawn
10 years old (In such cases, by customers after full disbursement of
valuation report from our loan amount as per extant norms.
empanelled valuer and a certificate
on the condition of the house to be
given by a structural engineer or
Govt. approved architect should be
taken).

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(c)Repair /Renovation/extension of
an existing house or flat.

Facility Term Loan only Overdraft (reducing D.P.)

FOR SALARIED EMPLOYEES
Age Min: 21 years, Max: 60 years,
the loan be repaid in full before
their superannuation from the
service.
Maximum tenor can be 15 years.
Permanent employees of
Central or State Governments /
Public Sector undertakings
(PSU) and Corporate (Corporate
with minimum staff strength of
1000 employee and external
rating BBB) who maintain salary
accounts with us subject to:
Have put in a minimum of 5 years’
service. And Availability of Check
Eligibility off
a) In case check off is available:
CIBIL Score will be as per extant
Home Loan norms.
b) b) In case Check off is not
available:
• Salary account of the
applicant(s)/ Guarantor(s)
will be mandatorily with SBI.
As applicable to Home Loans
Additional eligibility criteria - New
Home Loans of Rs.20 lacs and above
from applicants who are
(i) Existingcustomers with minimum
balance of Rs.5000/- in their SB /CA.
(Not applicable for customers whose
salaries are regularly credited to this
account and repayments are proposed
to be made from this account).
(ii) Prospective customers who open SB
/ CA with an initial minimum deposit of
Rs.5000/-. (Not applicable if salary of the
applicant is proposed to be credited to
this SB/CA).

• Minimum CIBIL Score will be

700.

c) For employees of corporate

minimum CIBIL Score 700
irrespective of checkoff.

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d) For professionals,
businessmen, self- employed
and Agriculturist

Individual(s) who are aged over 21

years but not more than 60 years
subject to liquidation of loan before
age of 60 years. subject to:

• Minimum experience of 5 years in

their respective sphere of activity.

• Minimum CIBIL Score will be

700.

• Maintain satisfactorily conducted

deposit accounts with us with an
average balance of Rs.10000/- for
the last two years
• Do not have any borrowing with
other Banks/ financial institution.
• OR
Loan accounts with SBI with
satisfactorily conducted for a
minimum period of 2 years without
any instance of slippage to RG 2
and below.
For Salaried Employees Since
mortgage of land will not be
available,
Third Party Guarantee of another
employee(s) (who fulfils the
Security As applicable to Home Loans
eligibility parameters stipulated for
‘SBI-Tribal Plus’ Home Loans)
employed with Govt. / PSU /
Corporate who maintains salary
accounts with us, whose net worth
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should be equal to the loan

amount will be obtained.

Lien on the Provident Fund

account of the applicant be noted,
wherever possible.
Rin Raksha Cover or a life
insurance policy for a sum equal to
the loan amount with single
premium be assigned to the Bank.
For Professionals,
Businessmen, Self-employed
and Agriculturist
a) Third Party Guarantee
b) Rin Raksha Cover or a life
insurance policy for a sum equal to
the loan amount with single
premium which will be assigned to
the Bank.

Liquid securities a) Permanent

employees of Central or State
Governments /PSU having
check off facility- Liquid
securities, duly assigned in Bank’s
favour, as of value min 30% of the
loan amount.

Permanent employees of
Central/ State Governments /
PSU without check off facility
and Corporate, Professionals,
self-employed, businessmen
and agriculturists etc. Liquid
securities, duly assigned in Bank’s
favour, as of value min 50% of the
loan amount.

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For employees: 36 times NMI

For professionals,
businessmen and self-
employed: 2 times average Net
Annual Income (NAI) for the last 3
years on the basis Income-Tax
Returns, along with
Audited/certified P&L a/c and
balance sheets, I.T. Challans.

For Agriculturists: Minimum: Rs. 20 Lacs

Quantum of Loan 2 times average Net Annual
Income for the last 3 years on the Maximum: Rs. 3 Crores
basis of their activity land holding,
cropping pattern, yield etc.:

Maximum loan for Govt/PSU

employees with checks off facility is
Rs. 20 lakh and for others Rs. 15
lakhs.
Top Up Loan upto a maximum
limit of Rs.5 lakh is also
available.
For construction/purchase of
new/existing house/flat: 20%
LTV / Margin As applicable to Home Loans
For repairs/renovation/addition
25%
As applicable to Home Loans. The
Drawing Power on the Overdraft will be
reduced on monthly basis to the extent
EMI/NMI As applicable to Home Loans of the principal component of the EMI so
that the Overdraft is liquidated at the end
of the loan tenure.

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As applicable to Home Loans.

After full disbursal the customer is eligible
for cheque book / INB facility for operation
Period/
Maximum 15 years. in the loan account. However, ATM cum
Repayment
Debit card will not be issued. No over
drawings are to be permitted.

Scheme Earnest Money Deposit (Loan for earnest money for allotment of House)

To finance applicants for earnest money for booking of residential plots/built-

Purpose up houses being sold by Govt. housing agencies like Urban Development
Authorities like PUDA, HUDA and Housing Boards.

Facility Demand Loan

No minimum income criterion is stipulated.

Eligibility
Individuals above 21 years of age with a steady source of income.

Waived, subject to:

(i) Allotment letters / refund orders should be routed through SBI.

Security (ii) Lump sums amount equal to 6 month’s interests to be taken upfront.

(iii) 2 PDCs one for the principal amount of EMD and another towards interest
for the next 6 months should be taken to meet the eventuality of refund
getting delayed.

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100% of application money, subject to maximum of:

1) Rs.15.00 lakh for CSP/DSP account holders.
2) Rs.10.00 lakh for others.

(One person can be financed only for one application at any point of time.)
Quantum of Loan
Margin: Waived, subject to:
(i) Allotment letters / refund orders should be routed through SBI,

(ii) Lump sums amount equal to 6 month’s interests to be taken upfront.

EMI/NMI As per Normal Housing Loan Scheme

In case of unsuccessful applicants – on receipt of refund from the Housing

Board/Urban Development Authority.
In case of successful applicants – lump sum repayment of the loan. If the
applicant avails a regular Home Loan from us for purchase of house allotted
to him/her or for construction of house on plot allotted to him/her, the loan
Period
may be paid out of the proceeds of the Home Loan. (Sanctioning authority
may allow longer period on case-to-case basis, but not more than 12 months
from the date of disbursement).
No penalty for prepayment.

Security Documents
i) Arrangement Letter
Others ii) D.P. Note and D.P. Note Delivery letter.
iii) An undertaking from the borrower to deposit the refund amount/lump
sum repayment of the loan with interest.
SBI HOME LOAN PAL (Pre-Approved
Scheme CRE Home Loans
Limit)
If an individual owns two or more Except property documents all the
houses, singly or jointly then the documents would be collected from the
Special Feature exposure for the third house applicant along with the application form.
onwards/purchase of plot will be KYC/income verification formalities to be
treated as CRE Home Loans. The completed on submission of the file to
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maximum number of houses/ flats/
residential plots will be restricted to
1 (one) under CRE Home Loans
over and above the two houses /
flats permissible under Home Loan
Scheme.
If he/she intends to sell one of the
existing houses within 6 months
after getting possession of the third
house, exposure to third house
may not be treated as CRE
exposure, provided the borrower
submits an Affidavit to that effect.
In case of non-fulfillment of this
condition by the borrower, Home
Loan will carry the rate applicable
for CRE Home Loan from such due
date till fulfillment of the stipulated
condition
No interest concessions are
Others
applicable to CRE home loans.
142
the RACPC. CIBIL credit report will be
verified. RACPC will assess the loan
eligibility on the basis of income details
of the applicant and issue “Pre-approved
Loan Arrangement Letter (PLAL)”. Non-
refundable processing fee as applicable
to the Home Loan will be collected
upfront.
Minimum limit amount under this facility
would be Rs. 10 Lacs
PLAL will be valid for a period of 3
months. Processing fees of 0.40% of
loan amount subject to maximum
recovery of Rs 10000/- plus applicable
tax will be collected upfront which is Non-
refundable. In case a request for
revalidation is received from the
customer Rs 5000/- + applicable tax will
be recovered for each revalidation of
sanction.
The discretionary powers to issue PAL
is as under
`

Proposals
Authority for
falling within
approving
the
proposal
discretionary
under PAL
Powers of
Head
AGM (Region)
RACC/LPC
DGM (B &O)/ CLCC DGM (B&O)
RCCC GM(Network)
Home Loan proposals,
falling beyond the
CGM Circle
Discretionary powers of
RCCC

SBI Privilege Home Loan & SBI

Scheme SBI Flexi Pay Home Loan
Shaurya Home Loan
As applicable to Normal Home As applicable to Normal Home Loan.
Purpose
Loan.
Facility
Term Loan (No Overdraft facility). Term Loan (No Overdraft facility).

SBI Privilege Home Loan:

Employees of Central / State
Government/ PSU with All salaried applicants with minimum 2-
pensionable service. year experience.
Minimum Age: 21 years &
SBI Shaurya Home Loan: Maximum Age: 45 years.
Eligibility Defense Personnel belonging to
Army, Navy and Air force. No minimum NMI limit.
Age:
Minimum: 18 years However, the minimum loan amount
Maximum: 75 years by which under the scheme will be Rs. 20 lacs.
time the loan should be fully
repaid.
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Employees covered under NPS

are not eligible under SBI
Privilege Home Loan.
As applicable to Normal Home
Security As applicable to Normal Home Loan
Loan
Minimum Loan Amount Rs. 10 Minimum Rs. 20 Lacs
Lacs Maximum: 1.2 times the normal loan
Quantum of Loan
Maximum Loan Amount Rs. 10 quantum, subject to stipulated LTV
Crores. norms.
As applicable to Normal Home
LTV RATIO As applicable to Normal Home Loan
Loan
(a) Where age of the eldest
salaried borrower is up to 45
years:
>Rs. 3L &<= Rs. 5L 55%
>Rs. 5L &<= Rs. 8 L 65%
>Rs. 8L &<= Rs. 10 L 70% EMI for the purpose of calculation of
>Rs. 10 Lacs 75% EMI/ NMI ratio for arriving at the loan
(b) (b)Where age of the eldest quantum will be worked out based on the
EMI/NMI
salaried borrower is above 45 number of EMIs for full loan tenor i.e.
years: 360 EMIs in case of 30-year loan, 300
>Rs. 3L &<= Rs. 5L 55% EMIs in case of 25-year loan and so on.
>Rs. 5L &<= Rs. 8 L 65%
>Rs. 8L &<= Rs. 10 L 70%
>Rs. 10 Lacs 75%
EMI / NMI Ratio Post Retirement
50%
Minimum: 60 months. Minimum: 25 years &
Maximum: 360 months or up to Maximum: 30 years.
the age of 75 years of borrower

Repayment (a) Where age of the eldest Monthly Repayment

salaried borrower is up to 45 years:
During moratorium period Only interest
As applicable to normal debited in the account is to be repaid.
Home Loan scheme.
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Next 36 Months 100% of EMI*

(b)Where age of the eldest
salaried borrower is above 45 Next 36 Months 105% of EMI*
years:
Balance term Terminal EMI - EMI which
a. During Moratorium Period - Fully amortizes the remaining dues/
Only interest accrued for the outstanding in the Home Loan account
month to be repaid within the balance term.

b. Up to the month of retirement *EMI arrived at after considering full loan

[EMI as per applicable EMI/NMI tenor (Ex. 360 months for 30-year loan,
ratio] X [Ratio of Loan Amount to 300 months for 25-year loan and so on).
Total Loan Eligibility]

c. Post retirement term – Terminal

EMI

# Terminal EMI refers to the EMI

which fully amortizes the
outstanding Home Loan balance
as on the month of retirement over
the remaining loan term.

a) Where age of the eldest

salaried borrower is up to 55 Period. For ready to move in properties:
years: up to 36 Months.
Same as Home Loan
scheme. For under construction properties: up to
Moratorium
36 months plus remaining construction
(c) b) Where age of the eldest period subject to a maximum moratorium
salaried borrower is above 55 period of 60 months.
years:
(d) Up to 18 months.

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Other RE Products
YONO: INSTA HOME TOP-UP
Scheme SMART HOME TOP-UP LOAN
LOAN
Existing Home Loan customers will
be pre-selected based on following
eligibility:
(a) Minimum Home Loan Limit of
Rs. 10 lacs. with INB
Existing home loan borrowers who fulfil
(b) Fully disbursed home loan with
the undernoted criteria
satisfactory track record of 1 year
a) Fully disbursed home loan accounts.
or more. (c) Home loan accounts
b) Minimum Home Loan Limit of Rs. 20
with maximum of up to two
lacs.
borrowers.
c) Minimum residual tenure of Home
(d) Minimum residual tenure of
Loan of 5 years.
Home Loan of 3 years.
d) Valid equitable mortgage should
(e) The customer should not have
have been created.
any live Home Top-up Loan.
(e) Satisfactory track record of
(f) No instance of the Home Loan
repayment and conduct for 1 year.
account slipping to RG-2 or further
(f) The customer should not have any
in the past.
Eligibility live Home Top-up or Insta Home Top-
(g) Minimum CIBIL Score of 650.
up loan.
(h) Repayment coming through SI
(g) No instance of the Home Loan
only.
account slipped to SMA (RG2) during
(i) Home loan account and
last three months or further in the past.
repayment account should be
(a) CIBIL Score of 550 or higher.
under same CIF.
(b) Staff will be eligible if they fulfill
(j) Equitable mortgage has been
the product specific and staff
successfully created for the
eligibility EMI/NMI criteria.
primary security/home loan. Based
j) No documents such as income proof,
on the above-mentioned
TIR, Valuation Report need to be
conditions, existing Home Loan
obtained.
borrowers will be pre-selected and
a notification for the Insta Home
Top-up Loan offer on home page of
YONO will be shown to these
selected customers. The pre-
selected customers would also be

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informed using SMS and-mail

Any personal purpose other than Any personal purpose other than
Purpose
speculative purpose speculative purpose
In case existing home loan account
Co-applicant consent is in joint name, then co-applicant
process required to give his/her consent, NA
after which disbursement will be
done.
valid for a period of 30 days from the
Validity of offer date of activation of the offer on NA
YONO Mobile App.
a) Home Loan borrowers with 12-60
months satisfactory repayment track
record after completion of moratorium
period:
Minimum: Rs 1.00 lacs
5% of the Home Loan Limit, subject Maximum: Rs 5.00 lacs
to Minimum of Rs. 1,00,000/- and Subject to 5% of the Home Loan Limit.
Loan Amount
Maximum of Rs. 5,00,000/- b) Home Loan borrowers with more
than 60 months satisfactory
repayment track record after
completion of moratorium period:
Minimum: Rs 1.00 lacs
Maximum: Rs 5.00 lacs
Subject to 10% of the Home Loan Limit.
Overdraft (with reducing drawing
Nature of facility Either Term Loan or overdraft facility
power).
The maximum tenor will be the residual
Minimum: 36 Month
Loan Tenure tenor of underlying Home Loan or 20
Maximum: 120 Month
years, whichever is lower.
At any point of time, only one `Insta At any point of time, only one `Smart
Number of loans
Top-Up Home Loan’ Top-Up Home Loan’
SI for EMI repayment will Mode of repayment should be either
Repayment
automatically be set up on account through SI or NACH / ECS.

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from which repayment of existing

home loan is made.
Pre-payment Penalty Nil Nil
An undertaking from the borrower Loan Agreement & Arrangement Letter
will be obtained online, authorizing authorizing the Bank to hold original
the Bank to hold original Title Title Deeds of the house property
Deeds of the house property already mortgaged to the Bank for
already mortgaged to the Bank for Home Loan, till the liquidation of all the
Home Loan, till the liquidation of all loans including the "Smart Home Top-
Security
loans including the proposed Insta up Loan" will be obtained. However,
Top-up Home Loan. However, extension of mortgage will not be
extension of mortgage will not be obtained.
obtained. The Smart Home Top-Up Loan scheme
is mandatorily processed on RLMS
only.
Processing Fee Flat Rs.2000 plus applicable GST Flat Rs.2000 plus applicable GST
BUILDER TIE UP LOANS
Builders with accepted constitution and no adverse history, who have been in the line of activity for
a minimum period of 5 years or Builders affiliated to the industry body i.e., State Chamber of Housing
Industry/CREDAI or Builders enjoying the ISO Certification or SPV/SPC created for the purpose of
development of Residential Project with excellent Track record of the Key Promoters are eligible.
The project completion period registered by the builders with RERA may be accepted for Builder Tie-
Up. However, the risk associated with longer periods must be assessed by the sanctioning authority
while approving the Tie-Up. In case the completion period is extended by RERA authority later on,
Administrative Approval from Circle CGM should be obtained for extending the project completion
period in BTU.
The Builder’s adherence to the Project completion schedule should be satisfied on the basis of
promoters’ track record in timely completion of their last three completed Projects.
Registration of projects with RERA of the state is MANDATORY in all states/UTs concerned,
wherever RERA has been notified and has come into force. However, in states and UTs where RERA
has been enacted but full-fledged work is yet to start due to lack of infrastructures and manpower,
residential projects in these states and UTs can be approved based on the RERA registration
application number of projects. However, Home Loan proposals under these projects will be
processed and sanctioned only after obtaining RERA registration number.

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The validity of the Tie-Up will continue for the duration of the Project, viz as long as the sales are
taking place in the Project. The first Review should be done by the Builder Tie-up Approving Authority
at an interval of 36 months or earlier if the builder wants to increase the selling price of the flats.
However, operating units will carry out annual “quick review to analyze performance under Builder
Tie-Up. Builder Relation Team (BRT) /RACPC should obtain Encumbrance Certificate (EC) every
year (in states/UTs where available) at the time of Quick review of the project to verify the status of
encumbrance of the Project land. In states/UTs where issuance of EC is not in vogue, fresh TIR for
the intervening periods has to be obtained for quick review.

Home Loans on YONO

Home Loans on YONO is a digitized process for home loan application, for identifying best suitable
product for the customers and for giving instant in principle approval. Instant in-principal approval is
accorded on the basis of digital verifications for Credit Bureau. Automated calculation of risk score
as per Risk Scoring Model (RSM), based on customer input is also done. Once customer gets in
principle approval, the loan application is allotted to HLST (for BPR branch) and Branch (for Non-
BPR Branch), as per his/her selection of the preferred branch, who in turn is required to collect the
documents and to continue the home loan process in LOS, as per existing process/instructions.
Pre-requisites to start home loan application process on YONO to get instant in
principle approval
• Applicant and co-applicant should be existing customer of SBI.
• Applicant’s PAN should be available in CIF in CBS. Also, his date of birth and mobile
number should be available and correct in CBS.
• Applicant should be above the age of 18 years and be Resident Indian.

• There can be maximum two applicants, one applicant and one co-applicant, for home loan
application on YONO.

• Applicant(s) existing loan account(s), if any, should be regular (IRAC 0 or IRAC 1), as per
CBS.
Concessions in Home Loans sourced through digital channels.
Rate of Interest: 05 bps concession will be available for digitally sourced loan in YONO.

Processing Fee: Recovery of only actual expenses (related to TIR and Valuations)

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SBI Reverse Mortgage Loan

Scheme
To provide a source of additional income for senior citizens of India who own
Purpose self- acquired and self-occupied house property in India. Supplementing
income, any personal expenses, house repairs, etc

Facility Non-renewable Overdraft

Single (subject to conditions) or jointly with spouse. Age of first borrower above
60 years. No. of surviving spouses on the date of sanction of loan Should not
be more than one. Borrowers will have to give an undertaking that they will not
remarry during the currency of the loan.
Eligibility
Minimum age of spouse:
When loan is availed jointly with the spouse Above 58 years
When loan is availed in single name
Not applicable (spouse is not a co-borrower)

Minimum Loan amount: Rs. 3 lacs. Maximum loan amount: Rs. 1.50 crore (Rs
2.00 Crore for Municipal Corporation Areas of NCR, Mumbai, Pune, Chennai,
Quantum of
Ahmedabad, Bengaluru and Hyderabad Centres.)
Loan
The loan amount would be 90% of the realizable value of property. Loan
amount would include interest till maturity.
Borrower should be staying at self-acquired and self-owned house /flat.
Equitable mortgage of residential property. Value of the house under Reverse
Mortgage Loan Scheme should be taken as Primary Security.

Periodicity of availing loan:

Monthly / quarterly payments
Security Lump sum payment: i) The lump sum amount will be 50% of the Net Present
Value of the limit, discounted at applicable ROI for the relevant loan tenure, or
Rs.15.00 lakhs whichever is lower.

ii) Remaining 50% of the Net Present Value of the limit, discounted at applicable
ROI for the relevant loan tenure, is to be disbursed through Monthly/ quarterly
/ annuities.

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EMI/NMI NA (No repayment)

i) When loan is availed jointly with the spouse:
If age of the younger of the borrowers is above 58 and up to 65 years: 20 years
only (option of 15 / 10 years not available)
If age of the younger of the borrowers is above 65 years and up to 70 years: 15
or 20 years only (10 years option is not available)
If age of the younger of the borrowers is above 70 years: 10/15/20 years as per
the borrower’s option.
ii) When loan is availed in single name:
i) If age of the borrower is below 65 years: 20 years only (option of 15 / 10 years
not available)
Loan tenor If age of the borrower is above 65 and up to 70 years: 15 or 20 years only (10
years option is not available)
If age of the borrower is above 70 years: 10/15/20 years as per the borrower’s
option
Note - Loan tenor under RML does not indicate a period by the end of which loan
becomes due for repayment. It only indicates the period for which the loan amount is
discounted at a given interest rate for making payments equivalent to the discounted
value to the borrower.
Loan tenor is fixed for the age brackets and should not be changed under any
circumstances as Net Present Value of the loan amount anticipated to be outstanding
at the end of loan tenor is paid to the borrower. Therefore, borrower gets less payment
if loan tenor is long, and more payment if loan tenor is short.
Residual Life of property: The expected longevity of the house property, as
certified by an empanelled Engineer, should be at least 25 years or more.
i) The RML need not be repaid during the lifetime of the borrowers.
ii) The RML shall become due and payable only when the last surviving
borrower dies or opts to sell the home, or permanently moves out of the
home.
Others iii) The legal heirs of the borrowers will be provided with the first right to
settle the loan along with the accumulated interest with or without the
sale of the property. Else the RML outstanding will be recovered from
the sale proceeds of the property through an auction arranged by the
Bank.
iv) Borrowers themselves may repay RML with accumulated interest at any
point of time without any prepayment penalty.
Home loan Master Circular No.: NBG/RE,H&HD-HL/49/2021 – 22 dt 17.12.2021

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Asset Product – Auto Loan

(Master Circular No.: NBG/PBU/AL-AUTOLOAN/12/2021 – 22 dt 18.12.2021)
(Auto loan recent Modifications Circular No.: NBG/PBU/AL-AUTOLOAN/13/2022 – 23 dt 03.09.2022)

SBI Auto Loan Scheme: General Instructions

To purchase new passenger car, MUV and Sports Utility Vehicles (SUVs).
Purpose

Facility Term Loan

Regular employees of State/Central Govt., Public Sector Undertakings, Defence
Salary package (DSP), Para Military salary package (PMSP) & Indian Coastal
Guard Package (IGSP) Customers and Short Commissioned Officers of various
Defence establishments, corporations, private sector companies, reputed
establishments and pensioners.
Professionals, Self-employed, Businessmen, and others who are income tax
assesses. Persons engaged in agriculture and allied activities

The maximum number of applicants should be restricted to two.

All Govt. Employees having Salary 650

Package accounts with SBI:
Eligibility Minimum CIC (CIBIL) Credit Vision
Score
For others: Including Salaried 700
customers other than Govt. Emp.
Salary Package Accounts: Minimum
CIC (CIBIL) Credit Vision Score is
stipulated:
Joint Borrowers: ➢ In case of joint borrowers, CIBIL Score that of
borrower/coborrower from whose account EMI for the auto loan is to be
recovered, is to be taken. ➢ In case of joint Agriculturist borrowers Experian
Score that of borrower/coborrower from whose account EMI for the auto loan is
to be recovered, is to be taken.

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Car loan can be sanctioned to applicants scoring -1 CIC score based on

following stipulations subject to approval from RM (RBO) in case of proposals
to be sanctioned by branches under RBO control. In case of Direct Control
Branches (DCBs) deviation is to be approved by DGM (B&O).
a) Customer should have bank account for more than 12 months.
b) Monthly single credit of Rs. 25000/- in the account other than system credit
for last 12 months and Income tax returns are electronically filed, and status of
Acknowledgement receipt (ITR-V) verified online.
c) Verification of the business/profession continuity is done through online
verification of TAN/TIN/GSTIN Number, which contains Date of Registration
and Address.
d) Pre-sanction inspection is to be carried out by Bank official only.
e) Deviation need not be obtained in case of salaried customers maintaining
salary account with us.

21-70 years
Age In case of Joint accounts, repayment period will be counted on the basis of
applicant with higher age.
For Salaried- Net Monthly Income (NMI) >=25000
(NAI>=300000/-) Income from other sources like Bank Interest/Dividend/Rent
can be added.

Income (Including Self-employed, Professionals, Proprietor / Partner and Businessmen: Net

Co-applicant, if Profit or Gross Taxable income of Rs. 3,00,000/- p.a. Income from other sources
any): - like Bank Interest/Dividend/Rent can be added.

Agriculturists: Net annual income of Rs. 4,00,000/-.

In case of agriculturists, other than the agricultural income, the borrower should
have additional income stream sufficient to take care of monthly installments. Net
monthly income of applicant(s) should be at least 2 times of EMI.
Waiver of
Opinion Report / Compilation of Opinion Reports / Assets & Liabilities Statements is waived for
Asset & all car loans up to Rs. 20.00 lacs if the CIC score 721 & above.
Liabilities
Statement
Security Hypothecation of vehicle.

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Min 1 Lac
Salaried: Up to 48 times the Net Monthly Income.
Self-employed, professionals, Business
Quantum of Up to 4 times the Net Profit or Gross Taxable Income per annum as per ITR.
Loan
Agriculturists
Up to 3 times the NAI

Project Cost (On-road price) include ex-showroom price, road taxes, insurance.
The cost of accessories, extended warranty and total maintenance is not included
On Road Price
in the project cost. In no case the Loan amount should not go beyond 100% of
Ex-showroom Price of the vehicle.
➢ At any point of time maximum 3 car loans only should be outstanding in our
books.
No. of Car Loans
➢ 2 car loans can be sanctioned by Branch, 3rd car loan after approval from
GM of Network.
➢ 15% of on road price (LTV 85%)
➢ 10% of on road price for Salary Package customers (LTV 90%)

Minimum and Maximum Loan

LTV & Margin
➢ Min – Rs. 1.00 Lakh.
➢ Max – 85% or 90% (for CSP accounts) of the on-road price, subject to 100%
of ex-showroom price of the vehicle

Up to Rs.5 Lakhs – 50%

EMI/NMI >5 Lakhs to Rs.10 L - 60%
> Rs.10 Lakhs - 65%
3 - 7 Years or up to the age of 75 years whichever is earlier. (In case of co-
Repayment borrower repayment period will be counted on the basis of applicant with higher
age)
2% p.m. (over and above the applicable interest rate) on the overdue amount
Penal Interest
for the period of default.
Authorized ➢ All branches with incumbency of Scale III & above, identified HUB Branches
Branches and Branches authorized by RMs (RBO) are authorized, place of availing loan.

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➢ Dealer driven business is to be processed at HUB Branches only. Non-Hub

branches can book business for their customers with no dealers pay out.
➢ If car loan NPA is above 1.50% then Cir MAC may decide to suspend
NPA
sanctioning powers in the branch
Dealer Pay-out in Case of OEM / YONO Platforms
All mapped branches (mapped with Dealers) on Online platform of OEMs will be
eligible to give Dealer pay-out on cases sourced through OEM Online Platform.
Exceptions will continue as it is. Dealer pay-out on all OEM platform sourced
cases will be applicable as circulated vide circular no. NBG/PBU/AL-
Service Charges
AUTOLOAN/2/2021-22 dated 21.05.2021. On YONO platform, 2% Dealer pay-
to Car Dealers,
out applicable for all branches
DSEs and ALCs
Maximum 4% Service fee to the Dealers for sourcing Certified Car Loan
Business, of the disbursed loan amount, as decided by the Circles.

Dealer mapping A Dealer can be allowed to map max up to 3 branches, with incumbency of
with Auto Loan Hub Scale –III & above and all such branches will be allowed to give pay-out to the
Branches mapped dealers.
The vehicle purchased is to be kept comprehensively insured with Banks
charge in the name of the borrower for the market value or at least 10% above
the loan amount outstanding, whichever is higher.
(c) A copy of Insurance policy for 1st year to be obtained and retained with the
Insurance
loan documents. Borrower is expected to keep the vehicle insured. In
subsequent years, obtention of insurance policy for bank record is waived for
loans up to Rs. 20.00 Lakh.
(ii) Insurance details are to be entered/updated in CBS.
To be conducted as under:
1. Any one official from Branch/Empaneled agency will visit the customer
for KYC & Pre-sanction survey. The KYC, Pre-sanction survey & opinion
report (Opinion Report wherever applicable) prepared by the official
Pre-sanction under his/ her signature & seal will be acceptable to sanctioning
Inspection Waiver authority.
2. Pre-sanction Survey format has been circulated vide e-Circular No:
NBG/PBU/AL-AUTOLOAN/2/2014-15 dated 09.05.2014.
Waiver of Pre-Sanction Survey
(A)For existing customer

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i) If the address of the customer has not changed and he is a;

➢ Home/Personal Loan with min 1-year satisfactory track record
➢ A car loan customer with one year’s satisfactory track record, who wants to
avail another car loan
➢ Customer having Avg balance of Rs 50,000/- and above and banking for at
least 1 year
➢ Under corporate tie up where check off is available
(B)For Defence salary package pre sanction is WAIVED subject to:
➢ The officer should have Salary Package account with SBI with updated KYC.
ii. The Serving Certificate from the Commanding officer of the unit, certifying his
rank, posting and residence of the Officer shall be obtained.
iii. Copy of the Aadhar Card of the Officer shall be obtained.
iv. The copy of the Canteen Smart Card of the officer shall be obtained.
ix. For repayment, SI from his salary account will be set up.
x. The latest salary slips for 1 month issued by CDA, Pune will be obtained,
and cross checked with the salary account maintained with us.
xi. In case of Negative report from Verification agencies, proposal to be
rejected
3. VIP flagged salary accounts
4. Gold & above variant Salary package accounts with minimum 6 months
old salary account with our Bank, which are linked to respective
Employer codes where applicable and are KYC compliant in CBS with
verifiable PAN & Mobile Number.
➢ Form 29 - Notice of transfer of ownership of a Motor vehicle
➢ Form 30 - Report of transfer of ownership of MV
➢ Form 34 - Application for making entry of agreement of Hire purchase
subsequent to registration
Forms ➢ Form 20- Application of Registration of Motor Vehicle
➢ Form 35- Notice of Termination of an Agreement of Hire Purchase/Lease /
Hypothecation RC Book
➢ Copy of Registration Certificate OR ➢ Extract from www.vahan.nic.in OR ➢
Form B extract from RTO ➢ Vehicle search
➢ If borrower fails to register in 120 days from date of disbursement OR Banks
Penalty hypothecation charge is vacated before loan closed charge of Rs.2,500/- pm to
be recovered till noting of charge

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Post disbursement inspection is lie come out within 15 days of disbursement.

–➢ For standard periodical inspection waived,
➢ If default of 1 EMI inspection is required
Inspection ➢ NPA accounts inspection twice a year.
For DSP waiver of Post sanction inspection:
1) Quotation from authorized dealer but payment – to canteen directly
2) Verify in vahan.nic.in and RC book details fed to be verified and updated in
CBS.
0.25% + GST Min – 750+GST, Max – 7500+GST
Processing fee Waived up to 31.01.2023 vide circular no. NBG/PBU/PL-GENERAL/26/2022-23
dated 02.08.2022
Prepayment NIL
penalty &
Foreclosure
Charges 2% + GST on Theo-balance if closed within 1 years from the disbursement
a) This clause is waived for applicants who have such negative “Account status”
in their CIR with the default pertaining to more than 5 years old and have since
CIBIL/CIC Reports maintained a satisfactory credit history.
(CIR) b) Overdue observed in the CIC Report: One overdue monthly payment in last
12 months would be allowed provided DPD did not exceed 30 days.
There should be no overdue at the time of processing of the loan.
Default in CIBIL/ ➢ Up to Rs.10,000/- - Sanctioning Authority not below Chief Manager
CIC Deviation ➢ Above Rs.10,000/- - Loans sanctioned by RACPC and other CPC- AGM of
permitting CPC
authority in Credit ➢ By Branches – AGM (RBO)
Card defaults ➢ By committees – Sanctioning Authority
Requirement of 2 For auto loans of above 5 Lakh – 2 reports from CIC to be obtained
CIC Reports 1) CIBIL (Primary) 2) Experian (Secondary).
➢ As per CIC score and term of loan
Rate of Interest ➢ Concession of 5 bps to Members of Parliament Concession in ROI:
Concession in 25 bps, for Car sourced through Yono.
➢ For New car loans above 15 Lakh and borrower age > 25 years ➢ CIBIL
Discretionary
score 707 above.
powers to give
➢ DGM up to 10 bps; GM- 20bps; CGM-30 bps.
concession
➢ DMD(RB)- up to MCLR
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Circle CGM- Can exercise discretion of 30 bps for Bulk business 20 car loans
with gross value of Rs 1 Cr. and above from Single entity i.e., Organization /
unit.
Govt of India has identified 03.05.2019 as date of integration of the registration
system of Central Registry with VAHAN National Register.
CERSAI
➢ Car loan hypothecation charge on vehicle with CERSAI registry has been
dispensed with post-merger of CERSAI with Vahan.nic.in
In retail loan schemes, customers desire various options/combination of options
of loan repayment so that the repayment commensurate with income generation
pattern of the borrower over a period and the repayment commitments are fulfilled
without any default. In this context, the competent authority has approved Flexi
Pay option in New Car loan and NRI Car loan in line with SBI Flexi Pay Home
loan. Features of the Flexi Pay option is as under:

Para Flexi Pay option

Flexi Pay option meter
(Circular No.: Eligibil All customers eligible under New Car Loan and NRI Car Loan
ity Scheme
NBG/PBU/AL-
Repay The below given Flexi Pay options are available to customers:
AUTOLOAN/18/2022 – ment a. First 6 months EMI to be 50% of Regular EMI
23 dt 11.10.2022) Optio applicable, provided, the tenure of loan is minimum 36 months.
ns& b. First 6 months EMI to be 50% of Regular EMI
Frequ applicable & next 6 months 75% of Regular EMI applicable,
ency provided, the tenure of loan is minimum 60 months.
On selection of installment option a. (Flexi Repayment 6 Months)
or b. (Flexi Repayment 12 Months), system will calculate and
generate Flexi EMI schedule. The Flexi EMI schedule will be
calculated and generated considering the lesser EMI being paid
during the Flexi Pay option period

AUTO Loan Variants (Only special features are given below for other parameters refer auto
loan general instruction)

Pre-Approved Car SBI Assured Car

Scheme SBI Loyalty Car Loan
Loan Loan
To purchase new
To purchase new passenger
Purpose Purchase of Cars passenger car, MUV
car, MUV and sport vehicle
and sport vehicle

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Bank’s existing
salary package
account customers
will be preselected
for this product
offering based on
following eligibility
Individuals including joint
criteria:
borrowers who have
1. Account should be
a) Availed the housing loan from
opened with salary
SBI,
package product
codes.
Existing Customers with b) Satisfactorily serviced the
2. Employees of
unencumbered Fixed loan for at least one year after
Government, PSUs
Deposits the moratorium period,
and ECR A and
Minimum Age of c) Taken the possession of the
better rated
borrower– 18 years – house
corporate borrowers
Max. No stipulation.
of CAG/CCG Existing
d) Created valid equitable
Eligibility Gold, Diamond &
Minimum Income - No mortgage and
Platinum Salary
stipulation.
Package account
e) Maintained security margin of
holders of
EMI/NMI & Risk scoring at least 15% for
Corporates having
model: NA purchase/construction of
more than 50 salary
plot/house.
accounts with us.
LTV, Margin: Nil f) Completed all terms and
3. At least one credit
conditions regarding sanction of
of Rs 25000 per
housing loan.
month in salary
account during 5 of
Min NAI – Rs.2 lacs
the last 6 months,
excluding cash
deposit and system
credit.
4. Total salary credit
summation of Rs 3
lac during last 12
months.

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5. There should be
salary credit in the
immediate last month
(Sixth month)
6. Age of the
borrower should be
minimum 21 years
and Maximum Age
57 years (Loan to be
repaid by the time of
retirement)
7. Account should be
KYC compliant.
8. Account should be
in single name.
9. CIBIL (V3) cut off
score of 700 and CV
New to Credit Score -
1 (151-200).
10. Term of Loan -
Minimum 3 years,
Maximum 7 years.
11. Loan Amount –
Minimum Rs. 1 lac,
Maximum Rs. 5 cr.
12. Max Loan
Amount- 48 times of
the Net monthly
income.
13. RSM score of 46
and above.
14. Resident status
of customer should
be Resident Indian.
15. None of the
existing loan
accounts under the

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same CIF should be

in SMA2 and/or NPA
category
i) Hypothecation of vehicle
1)Hypothecation of
vehicle. ii) Equitable mortgage taken for
the housing loan should be
2)Pledge of TDR in extended to cover the new car
his/their own name. loan. Extension of mortgage will
Third party TDRs will not be mandatory for car loan up
not be accepted. to Rs. 10.00 Lakhs. However,
Security Hypothecation of vehicle
Deposit in joint names letter of lien on title deed needs
with only two persons to be obtained.
will be accepted. In case
of joint deposit, one will iii) The title of the mortgaged
be primary borrower property will be released only
and other will be co- after the closure of Car Loan
borrower. under the scheme irrespective
of the quantum of car loan.
Min: Rs 2 lacs, a) 75% of present realizable
value of the house property less
Quantum As per Regular Car
Max: No Limit, 100% of present outstanding in the Home
of Loan Loan Scheme
FD for ‘On-Road- Price’ Loan account and Home Equity,
of vehicle if any.

b) EMI/NMI ratio will be as per

respective car loan scheme.

c) 100% Ex-show Room price

of the vehicle

The permissible loan amount

will be the lowest of the above
3.

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0.25% of the loan amount

Processing As per Regular Car Minimum: Rs. 500/- + GST;
Nil
Fee Loan Scheme Maximum Rs. 5000/- + GST.

Certified Pre-Owned SBI Green Car Loan

Scheme NRI Car Loan
Car Loan (Electric Vehicle)
For purchase of Certified
Pre-Owned cars from
pre-owned car outlets
NRI fulfilling following conditions:
such as, Maruti True
a) Having valid Indian passport
Value, Honda Auto
b) Steady Source of Income
Terrace, Hyundai
Purpose c) Employed abroad for at least 2
Advantage (now called
years
H Promise), Tata
d) Holding a valid job
Assured, Ford Assured,
contract/work permit
Toyota U Trust,
Mahindra First Choice
and BMW Infinity Cars.
Under the NRI – Car Loan
Scheme, the NRI will be the
Borrower and the NRI’s close
relative in India will be the
Guarantor.
Resident Indian who is the
guarantor to the loan should be a
Age of the vehicle not CIC (Credit vision) close relative of the NRI
Eligibility
more than 10-year-old. Score: Minimum 721 borrower. (The scope of the term
close relative will be Father,
Mother, Spouse, Son and
Daughter)

For Our Bank Customers:

Statement of bank account for
the last twelve months which

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reflect credit of salary, savings

etc.)

Other Bank Customers:

➢ Having NRI account with
other Banks for last 24 months
with a minimum balance/fixed
deposits of Rs.50,000/-.

➢ The borrower will open NRI

account with SBI for repayment
of EMI
Minimum: Rs.3 lacs.
Maximum: Rs.100 lacs.

Upto 30 times the net

monthly income of
salaried persons For Borrower: Minimum NMI US
$ 1000.00 or equivalent in other
Others- 2.5 times the net currencies Or, Minimum NAI US
annual income (i.e., $ 12000 or equivalent in other
income as per latest currencies.
Loan Amount
income tax return filed For Guarantor: No stipulation
& Income
less taxes payable).
Minimum Loan: Rs. 1 lakh
For agriculturists the Maximum Loan Amount: - 18
annual net income times of NMI (of Borrower)/ 1.5
should be arrived at by times of NAI (of Borrower
branches, based on the
nature of their activity,
(i.e., farming, dairy,
poultry, orchards) land
holding, cropping
pattern, yield, etc.

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50%
EMI/NMI As per Car loan scheme

10 years minus the age

of the vehicle at the time
Minimum: 3 Years;
Period of applying for loan As per Car loan scheme
Maximum: 8 Years.
subject to a maximum
tenure of 5 years.

Concession of 20 BPS in
Others Take over not
applicable rate of interest As per Car loan scheme
ROI considered
for SBI car loan.

For all Loans margin is

Margin and
15%
processing As per Car loan scheme
fee

“SBI Easy Ride” Digital

High Value Super
Two -Wheeler Loan
Bike Loan
“PA2WeeL”
(Circular No.: Two-Wheeler Loan
Scheme (Circular No.:
NBG/PBU/AL- Scheme
NBG/PBU/AL-2 WHEELER
AUTOLOAN/17/2021 –
LOA/11/2021 – 22 dt
22 dt 11.03.2022)
22.10.2021)
To provide finance on
To provide finance for
digital platform for
purchase of new Two-
Two-wheelers viz.
wheelers viz.
For purchase of premium scooter/motorcycle/moped/
Purpose scooter/motorcycle/
segment Two-Wheelers. battery-operated/electric
moped/battery-
vehicles of reputed make
operated/electric vehicles of
reputed make

Age 21-57 years. at the time 21-57 years, at the time of

21-57 years
of sanction of loan ( sanction of loan

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(Loan must be fully

repaid before the
borrower attains the age
of 60 years.)

Salaried/Pensioners:
NAI of applicant and/or
co-applicant if any,
together should be
CSP Customers-The
Rs.3,00,000/- p.a.
customer should have
consistent single credit of Rs
Self-employed,
>=10000 in 9 out of last 12
Professionals,
Net Monthly Income (NMI) months.
Proprietary/Partnership
>=Rs. 12500/-
Minimum firms and Businessmen:
Net Annual Income (NAI)>= Non-CSP Customer -The
Income
Rs. 150000/- customer should have
Net Profit or Gross
consistent credit of >= Rs
Taxable income of
10,000 in 9 out of last 12
Rs.3,00,000/- p.a. as
months.
per ITRs

Agriculturists:
NAI. of applicant and/or
co applicant together to
be Rs. 4 Lacs.

Min Loan: ₹.0.20 lakh

Minimum Rs.1,50,000/-.
Loan Amount Maximum Rs.25 lakhs
EMI/NMI Ratio 50%
15% of on road price of
Margin:
the vehicle
Max Loan: ₹.3.00 lakh
Minimum: Rs. 20,000/-
Maximum: Rs. 3.00 Lakhs
4 times of Monthly Income
and applicable EMI/NMI
Ratio
Up to 50% for all applicants
Up to 60% for Existing salary 50%
package customers of SBI
15% of on-road price 15% of on-road price
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` Asset Product – Gold Loan

(Master Circular No.: R&DB/PBU/CD&e-COM-GL/8/2022 – 23 dt 13.05.2022)

36 and 48 Months

Upto 48 Months or Subject to condition,

before the borrower Loan Account must Minimum: 12 Months &
Repayment:
completing 60 Years of be closed on or Maximum: 48 Months
Age, whichever is earlier before the borrower
attaining the age
of 60 years
2 % of loan amount + GST, 2 % of loan amount + GST,
Processing 2.00% of loan amount subject to minimum ₹ 1000 + subject to minimum ₹ 1000 +
Fees max. Rs.10000/- GST. GST Max 6000+ GST

Hypothecation of vehicle. Hypothecation of vehicle

Hypothecation of vehicle
Security CIC Minimum 700 for all CIC Minimum 700 for CSP
applicants and 731 non CSP

1. PURPOSE: A general-purpose Loan scheme for individuals, against collateral security of gold
ornaments & specially minted gold coins sold by Banks.
SBI Realty Gold Loan: It can be availed by pledge of gold ornaments including gold coins sold by
Banks to meet undernoted requirements:
i. Margin money requirement in housing loan.
ii. Registration charges of house property.
iii. Project price escalation

2. ELIGIBILITY CRITERIA:
(i) Individuals who are 18 years of age with steady source of income including Bank’s employees and
pensioners. However, submission of proof of income by borrower is not necessary.
(ii) Proper KYC compliance of the borrower
(iii) Capacity to service the interest in Gold Loan (Overdraft) account and EMI in Gold Loan (EMI based
Demand Loan) Account.
(iv) The Borrower to score 31 and above in Risk scoring Model (RSM)
(v) A declaration from the borrower be obtained by the branches about ownership of the ornaments
offered for pledge

For Realty gold Loan: In addition to above, Customer should have housing loan with SBI (both
existing and new) with minimum capacity to service the interest/EMI (as applicable).
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INCOME TAX BENEFIT (Only for SBI Realty Gold Loan Variants):
Income tax benefit will be available as under:
Section 24(b) – Interest
Section 80C - Principal
Section 80EEA - Interest
Subject to fulfilment of the other conditions prescribed under the respective sections of Income
Tax Act’ 1960.

3.PRODUCT VARIANTS:
A. SBI Gold Loan Bullet repayment
B. SBI Personal Gold Loan (EMI based)
C. SBI Personal Liquid Gold Loan (Overdraft)
D. SBI Realty Bullet Repayment Gold Loan
E. SBI Realty EMI Gold Loan
F. SBI Realty Liquid Gold Loan (Overdraft)
G. SBI Staff Gold Loan (Demand Loan)
H. 3 months Bullet Repayment Gold Loan
I. 6 months Bullet Repayment Gold Loan
4.LOAN AMOUNT:
Minimum: Rs. 20,000/- (for other than SBI Realty Gold Loan and for Realty Gold Loan Rs.50,000/-)
Maximum Rs. 50,00,000/- (Per Customer)

For Agri Segment No Minimum Loan Amount is stipulated and maximum loan amount is Rs 25.00 lacs.

5. MARKET VALUE AND ADVANCE VALUE OF GOLD

The Market Value and Advance Value for per gram of Gold of different Carats purity is updated
at the beginning of every month and the same is made available in SBI Times -> Department2 - >
Precious Metals -> Daily Reports.

6. Quantum of Advance
(i) As per the gold prices fixed every month by the concerned circle for 18/22/24 carat Gold. No loans
should be granted against Gold Bar/Bullion.
(ii) Further, due care should be exercised while assessing the gold ornaments to find out purity of the
metal at the time of sanction of loans.

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7. Margin:
The Margin required under SBI Gold Loan Bullet repayment and SBI Realty Bullet Repayment
Gold Loan is 35%, for 3 months Bullet Repayment Gold loan and 6 months Bullet Repayment Gold
Loan is 30% and for rest variants are 25%

8. Repayment Period:
SBI Gold Loan Bullet repayment and SBI Realty Bullet Repayment Gold Loan having repayment period
12 months and other repayment period is 36 months. Further SBI Personal Liquid Gold Loan
(Overdraft) and SBI Realty Liquid Gold Loan (Overdraft) will be reviewed every year. SME Gold loan
is repayable in 12 months.

9. Various Gold Loan Testing Methods

a) Touch stone Method
b) Nitric Acid Test
c) Specific gravity test
d) Gold Assaying Machines (Karatometers)

10. CUSTODY OF GOLD ORNAMENTS PLEDGED

The gold ornaments must be placed in the strong room under the joint custody of the
Branch Manager/Manager of ‘P’ division /Accountant and the Branch Cash Officer/Award Staff
(Senior Special Assistant/ Special Assistant / Senior Assistant Assigned the job of Gold Loan
processing), after entering in the Gold Loan Ledger.

11. DELIVERY OF ORNAMENTS:

On repayment of a loan, the ornaments held as security for it together with the demand Promissory
note duly discharged should be returned to the borrower(s) and his/their Acknowledgement for
receipt of the ornaments obtained in the Gold Loan Ledger. The Acknowledgement should state that
the ornaments received by him/them are ‘complete and in order’. Where it becomes necessary to
retain the ornaments pertaining to a Closed account, these should be kept in the joint custody of the
official in charge of gold Ornaments and the identified joint custodians as an article in Safe Deposit. The
full Particulars of the relative loan account should be entered and authenticated by both the Officers in
the Safe Deposit Register. Suitable notice may be served to the borrower Indicating our rate of charges
as safe custody to be charged. The borrower’s Acknowledgement for subsequent delivery of the
ornaments should be obtained in the Gold Loan Ledger and the fact noted in the Safe Deposit
Register. Applicable Safe Custody Charges to be recovered from the borrower.

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12. PART DELIVERY OF ORNAMENTS:

On written request of the borrower, part delivery of ornaments may be given against part repayment of
the loan, provided the advance value of the ornaments still in the Bank’s possession fully cover
the outstanding in the account including required margin. The borrower’s acknowledgement for receipt
of ornaments delivered to him should be obtained in the Gold Loan Ledger.

13. DELIVERY OF ORNAMENTS TO A THIRD PARTY:

In normal circumstances, delivery of Gold ornaments shall be made to the borrowers Only.
In very exceptional circumstances and based on the undoubted/specific authority of the borrower,
delivery of ornaments to a third party, who must be properly identified, may be made on repayment of
loan.

14. CALLING UP OF ADVANCE:

A letter should be served to the borrower advising him/ her to deposit the amount /regularise the
account within 15 days, immediately after the accounts become irregular.

AGRI GOLD LOAN

Service area: Applicant should be a resident of an area within a range of 25 to 30 Kms from the
branch. However, the stipulation is not applicable for the existing customers and the applicant from the
non-banked areas.

Purpose:
1. To meet the short-term production / investment credit needs of the farmers, engaged in
agriculture, cultivating own and /or leased land or engaged in cultivation of crops.
2. Farmers in allied activities like Dairy, Poultry, Fisheries, Piggery, Sheep, etc.
3. Entrepreneurs and famers who needs investment credit for acquiring farm machinery, undertaking
land development, irrigation, horticulture, transportation of Agri produce, etc.
4. All other farming activities which are permitted to be classified under agriculture as per RBI/GoI/
NABARD guidelines

Eligibility: All farmers: Individuals who are owner cultivators, Agri entrepreneurs. Tenant farmers,
Oral lessees & Sharecroppers, any person engaged in any agriculture or allied activities and wants
to repay loans availed from non-institutional lenders as well as persons engaged in activities
permitted by RBI to be classified under agriculture. a self- declaration has to be obtained from the
applicant that he/she is engaged in Agri and allied activities and that the loan availed against the pledge
of gold ornaments is for repayment of higher interest rate loans availed from non – institutional lenders.

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Surprise Verification: The surprise verification of gold ornaments, pledged under the scheme, at
random basis (30% ornaments or maximum of 100 gold loan accounts whichever is less) has to
be conducted at Quarterly intervals by an officer other than Joint Custodian to prevent frauds.
Spurt in Agri Gold loan portfolio- Controllers should arrange for re-verification of gold loans
immediately when noticed a sudden spurt in the branch gold loan portfolio for ensuring the quality and
value of ornaments and compliance of systems and procedures while sanctioning / disbursing loans.

“SME GOLD LOAN” (SOP Circular No.: NBG/SMEBU-MSME CREDI/31/2022 – 23 dt 27.07.2022)

Brief features of SME Gold Loan product:
Target Group & Eligibility: Existing MSME Units (Proprietorship Firm only), both borrowing & non-
borrowing units of our Bank, who want to avail loan against Gold Ornaments/ Jewellery. Unit/ Shop shall
be with running activity Account should not be in NPA status.

Purpose: To provide hassle free financial assistance to existing MSME units (Proprietorship Firm only)
against Gold Ornaments/ Jewellery held in the name of Proprietor, for fund-based requirements for
general business purpose & augment working capital, acquiring machinery/ equipment/ tools for repairs,
renovations etc.

Nature of Facility: Overdraft (OD) / Demand Loan (DL)

Loan amount: Min > 1 lakh Max: Rs. 50 lakhs

Assessment:

25% of the Projected Turnover of the unit, (ii) 100% of value of asset proposed to be purchased for
business purpose, subject to not exceeding 100% of the Advance Value of Gold as per existing
guidelines (as stipulated by PMD/ABU from time to time).

(No financial document needs to be obtained from customer for arriving at projected turnover; the
same may be obtained as per customer’s self-declaration only. For existing borrowers, such data will
be available with the Branch.)

Repayment Period: Overdraft: Max. 12 months. Repayable on demand. Interest to be serviced on

monthly intervals as and when applied.

Demand Loan: Max. 12 months. Repayable in part payment or bullet repayment any time before
maturity. Interest is to be serviced at monthly intervals. No Renewal under Demand Loan. Fresh
Sanction to be done after repayment of Loan.

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Asset Product – Personal Loan

Xpress Credit Loans -General Instructions
(Xpress Master Circular No.: NBG/PBU/PL-XPRESS/41/2021 – 22 dt 24.03.2022)
Eligibility Criteria

Central and State Government • Defence & Paramilitary Forces • Quasi-

Government • Central PSUs & State PSUs* • Educational Institutions of National
Repute (Institutions under SBI Scholar Loan Scheme) • Corporates • Govt.
Employers (Central & State)/ Govt. Aided/ Semi-Govt. Schools and Colleges Employees of
negative list Companies (D-rated) will not be eligible under the scheme.
*Note: Loss making State PSUs to be considered under Risk Mitigated Product
(RMP) only, with prior approval of DMD (RB).
Employees Salaried Govt./Defense employees (CGSP, SGSP, DSP, CAPSP, ICGSP, RSP,
PSP) with a minimum service of 6 months which should be validated through
Salary account statement or Salary Package Corporate Customers with a
minimum of 1-year length of Service.

For new Salary Package Accounts, Bank Account showing regular salary credits
to be ensured (including last one through our Bank). • Should comply with Bank’s
KYC norms. • Should not be a minor or Non-Resident Indian. • Maximum age
should not be more than 60 years. Salary Package accounts should be
compulsorily mapped with employer relationship code wherever applicable.
Salary Package customers of Govt./ Defense (i.e., CGSP, SGSP, DSP, PMSP,
ICGSP, RSP, PSP, etc.): Salaried Employees with a minimum service of 6
months are eligible which should be validated through Salary Account statement.

CIC Scores Applicants with the following minimum CIC score will be eligible under the
scheme:
(i) Govt. Salary Package (DSP, ICGSP, PMSP, RSP, PSP, SGSP, CGSP
etc.): CIC Score of 650 and above.
(ii) Corporate Salary Package (CSP): CIC score of 670 and above.
(iii) Applicants with NIL Credit history (-1 score) for Govt. as well as CSP
accounts may be considered in respect of
(a) Govt. salary package customers (DSP, ICGSP, PMSP, RSP, PSP,
SGSP, CGSP etc.),
(b) VIP flagged salary accounts.
(c) Gold & above variant Corporate Salary package accounts which are
linked to respective Employer Codes provided Verifiable regular salary
credits during the last 6 months.

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Particulars Primary CIC Secondary CIC No. of CIC Report

Loan up to Rs. 4 lacs CIBIL NA
Loan above Rs. 4 lacs CIBIL Experian 1
If NO HIT under (2) above CRIF Highmark Equifax 2
Minimum Net NMI of the employee should be Rs.15000 and up to Rs. 1 lac
Monthly Income
Note: Customers drawing NMI between Rs. 7000 and 14999 can be considered
under a different product, i.e., Xpress Lite Scheme and Customers drawing NMI
above Rs 1 lakh can be considered under Xpress Elite Scheme.
Repayment Maximum 72 months or residual service period whichever is less. Should be
repaid by the age of 60 years.
Loan Amount Minimum: - Term Loan: - Rs. 25000/-,
Overdraft: - Rs. 5 lacs.
Maximum: - Rs. 20. Lac. Subject to 24 times of NMI

Maximum loan limit under Xpress Credit has been increased to Rs. 30 lakhs for
Diamond Salary Package customers nd for Xpress Elite to Rs. 35 lakhs
EMI/NMI ratio Xpress Credit Scheme:
• Silver & Gold variant Salary Package customers: EMI/ NMI ratio <= 50%
• Diamond variant Salary Package customers: EMI/ NMI ratio <= 55%

Xpress Elite Scheme:

• Platinum customers with NMI <= Rs. 2 lakhs: EMI/ NMI ratio <= 60%
• Platinum customers with NMI > Rs. 2 lakhs: EMI/ NMI ratio <= 65%
Processing 1.50% of Loan Amount subject to minimum Rs 1000/- and maximum Rs 15000/-
Fees plus GST.

* 100 % and 50% waiver of processing fee for certain categories of Salary
Package Account holders are waived up to the validity of MOU.
Top Up Loan Applicants may avail second loan any time after availing first loan subject to
overall satisfactory track record and EMI/NMI ratio <= 50%.

Customer may opt for a second loan or may close the existing loan and open a
new loan with enhanced limit.
There cannot be more than 2 Xpress Credit Loans (including all variants)
in one CIF.
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Penal Interest Penal Interest @2% p.m. would be charged (irrespective of loan amount) over
and above the applicable interest rate on then overdue amount for the period of
default. If part instalment or part EMI remains overdue, then penal interest will not
be levied.
Foreclosure/Pr Any prepayment of EMIs in full or in part and closure of account before the end
epayment of term will attract the prepayment charges of 3% on prepaid amount.
Charges:
No prepayment/ foreclosure charges will be applicable if the account is closed
from the proceeds of a new loan account opened under the same scheme at our
branches.

No pre-payment/ foreclosure charges to be levied if the loan account is closed

after the completion of loan tenure of 3 years.

In case of Defence customers, 100% waiver of prepayment/ foreclosure charges

to be applicable irrespective of the loan tenure.

However, Foreclosure charges/ PrePayment penalty @ 3% on prepaid amount

to be levied in case of all takeover cases by other banks, irrespective of the tenure
(including Defence customers).
Check Off a) The process by which the salary disbursing officer undertakes to deduct loan
installments from the salary of the borrower and remits the same to the Bank for
credit to the loan account. OR (b)
(i) The employer pays the borrower’s salary into his Savings /Current Account
with our Bank.
(ii) The borrower gives an irrevocable Standing Instruction (SI) for recovery of the
loan installments from his aforesaid account with the SI being synchronized with
the date of credit of salary in the borrower’s Savings/Current Account.

AND The employer undertakes to inform the Bank if and when there is a
severance due to borrower’s transfer, resignation, retirement etc. and undertakes
to obtain a NOC from the Bank before settling the dues of the borrower on
transfer, resignation, retirement etc.

No Checkoff a) The employer pays the borrower’s salary into the Savings/Current Account with
our Bank.

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(b) The borrower gives an irrevocable SI for recovery of the loan installments The
SI should be synchronized with the date of credit of salary in the borrower’s
Savings/Current Account.

Sanctioning Structure/Financial Delegation

Category of the Sanctioning Authority
Borrower
All salaried Metro/Urban Centres: MMGS-II and above branches. For Patna & Bhubaneswar
Customers with Circles, it will be MMGS-III and above branches.
accounts flagged
under Semi-Urban and Rural Centres: MMGS-III and above branches.
appropriate
Salary Packages Branches with Xpress Credit NPAs of above 2% are debarred from fresh
in our Bank. sanctions unless compelling reasons exist which should be approved by the
respective CMC.

Respective CGM of the Circle (except Patna and Bhubaneswar Circle) is

empowered to delegate the power of sanction of Xpress Credit Loans by the
MMGS-II Branches in RUSU Centre where potential exists for the business,
subject to the following conditions:
• Potential for Xpress Credit is clearly established.
• Last 2 years NPAs under Xpress Credit for the branch to be below 1%.

Applicants Designated salary payment Branches/ Cantonment Branches/ Campus Branches

covered Under and other Branches in proximity to the place of work of borrowers with
DSP/PBSP/ICG incumbency not below MMGS-II incumbency.
SP Salary
Package A/Cs

Employees of Campus Branches/Captive Branches/ Branches located in the Project Townships

Central/ State / large Corporates etc., not below MMGS-II incumbency
Govt.
Establishments /
Dept/
Institutions/
Corporates/
Entities etc.
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In all other cases In this connection we further clarify as under:

i) Proposals within the sanctioning powers of the Hub/Spoke/Campus/Captive
branches will be sanctioned and disbursed at the branches itself.

ii) Proposals beyond the powers of the above

branches to be sent to RACC if the branch is linked to RACC and the proposals
fall within the financial delegation of RACC.

(iii) In other cases, i.e. (a) Proposals beyond the powers of RACC & (b)
Proposals beyond the powers of branches which are not linked to RACC, will be
sent to RBOs directly for sanction.

XPRESS CREDIT– VARIANTS

SCHEME XPRESS CREDIT – ELITE

Purpose For any legitimate personal purpose

EMPLOYERS As applicable under Xpress Credit scheme.

EMPLOYEES Permanent Employees/ Officials with NMI of Rs.1.00 lakh & above.
Should comply with Bank’s KYC norms• (There is no compulsory requirement of
him/ her maintaining salary account with the bank)
Eligibility
Minimum CIC Score (TU-CIBIL) of 650 for Govt. employees and 670 for corporate
employees category to avail loan under Xpress Elite. In addition, applicants
having NIL Credit history (i.e., CIBIL Score -1)• provided verifiable regular salary
credits during the last 6 months will be eligible

Security NIL

Quantum of Minimum Loan Amount: Rs.3,00,000

Loan Maximum loan limit under Xpress Elite to Rs. 35 lakhs

Margin NIL
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• Platinum customers with NMI <= Rs. 2 lakhs: EMI/ NMI ratio <= 60%
EMI/NMI
• Platinum customers with NMI > Rs. 2 lakhs: EMI/ NMI ratio <= 65%
Repaymen
Maximum 72 months or residual service period whichever is less
t
Applicants may avail second loan any time after availing first loan subject to overall
satisfactory track record.
Others • Customer may opt for a second loan or may close the existing loan and open a
new loan with enhanced limit.
• Cannot be more than 2 Xpress Credit Loans (including all variants) in one CIF.

Scheme Pre-Approved Personal loan (Non CSP)

Purpose Any personal purpose

• The account should be in P-segment

• Account other than those opened with a CSP product Code or No frill
accounts
• Account should be in single name (Joint Accounts not eligible)
• Residential Status of the Customer should be “Resident Indian”
• Account should be KYC compliant and KYC validity period should be more
Eligibility than 4 months from the date of eligibility check
• Age of the customer should be between 25 Year and 64 year 9 months
• CIBIL cut-off score of 760
• Account should be operative for a minimum period of two years.

The offer made to pre-selected customers will be valid for a period of one month
from the date of activation of the offer on our YONO Platform.
Minimum ₹ 20,000/-
Loan
Maximum ₹ 2,00,000/-
Amount

Minimum: 6 Months Maximum 24 Months

Tenure

Loan based on Average Quarterly Balance (AQB) in SB Account for last 4 quarters
EMI/ NMI

Processin
g Fee Nil

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Only one PAPL(Non CSP) can be availed at any point of time

No. of
PAPLs

SBI XPRESS CREDIT XPRESS CREDIT SCHEME - SBI INSTA

SCHEME VARIANTS - YONO – PAPL CREDIT TOP UP LOAN ON INB & YONO
(PAXC) PLATFORM
For any legitimate personal
Purpose For any legitimate personal purpose
purpose
Bank’s existing customers will
be pre-selected for this product
offering based on following
eligibility criteria: Account
should be opened with a Salary
Package (SP) product code. Existing Xpress Credit Loan Borrowers who
(For e.g., CGSP, CSP, DSP, fulfill the following conditions will be offered “SBI
ICGSP, PMSP, PSP, RSP, Insta Credit Top Up Loan”
SGSP etc.) Account should be Minimum existing Xpress Credit Loan Limit of
in single name (Joint Accounts Rs 1 lac.
not eligible). Residential Status
of the Customer should be Minimum residual maturity of Xpress Credit
“Resident Indian.” Account Loan 1-year Satisfactory repayment record of at
should be KYC compliant. least 1 year
Eligibility
Aadhaar is Mandatory.
Age of the customer should be The customer should not have an existing Top
between 18-56 years There up Loan
should not be any existing
Xpress Credit loan (including No instance of the Xpress Credit Loan slipping
Insta Credit/Top up loans) to RG3 and beyond in last 1 year
account under the CIF None of
the existing loan accounts under Repayment of Loan will be only through SI.
the CIF should have SMA 2 and
above. None of the existing loan
accounts under the CIF had
been NPA in last 12 months.
None of the existing loan
accounts of the customer any
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Bank/Financial Institutions
should have been NPA in last 12
months. There must be at least
one credit every month for last
12 months
CIBIL score criteria is as under:
CGSP, DSP, PMSP, ICGSP,
PSP, RSP, SGSP, CSP
customer with Select Employer
Code - No CIBIL cut off score,
Others 700.
20% of Xpress Credit Limit (Existing Loan Limit)
Quantum of Minimum Limit: ₹ 25000/-, Minimum: Rs 20,000 Maximum: Rs 3,00,000
Loan EMI/NMI=50%
Max: 24 times NMI subject to
maximum of ₹8,00,000/-, Subject
to EMI/NMI ≤50%. NMI = Median
of the ‘Maximum credit in the
salary account in each month for
last 12 months

72 months or {58 years- Age of

Minimum 12 months to maximum 36 month.
customer (years and months) as
Repayment The top up loan will be co-terminus with the
on Quarter end date of data
existing loan.
extraction

A processing fee of 1.50% of the loan amount

plus applicable GST will be levied under the
Processing Fee Rs 2000 + Applicable Tax product, subject to minimum Rs 1000 and
Maximum Rs. 15000, plus GST.

At any point of time, only 1 “Insta Credit Top Up

One. In case the loan account is
Loan” will be allowed to exist under the
closed during the month, a
proposed scheme. Second Loan may be
No of Loans customer will not be eligible for
considered only after a gap of one year from the
taking a new loan till the start of
date of opening of the previous “Insta Credit
next calendar month.
Top-up Loan” subject to the condition that the
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1st Top up Loan has been closed.

The offer to the pre-selected customers will be valid till the end of month in which
they are offered the loan. The list of Accounts pre-selected for this offer will be
dynamic and a new list will be prepared on a monthly basis based on the eligibility
Validity of
criteria. The new list will be updated at the back end every Calendar month so that
Offer
all ineligible account holders, who may be previously eligible, are removed from the
list.

XPRESS LITE SCHEME

A New Product “XPRESS LITE” for our salary package customers drawing Net Monthly Income in the
range of Rs.7000 to Rs. 14,999 has been introduced.

The features of the product areas under:

All salary package customers with regular salary credits in Salary

Package accounts (excluding non-permanent employees and irregular
Eligibility
salary credits). For CSP customers mapping of employer code is
mandatory.
Net Monthly Income Minimum: Rs. 7000 Maximum: Rs. 14999
Minimum: Rs.25000, Maximum: Rs. 1,80,000
Loan Amount Subject to 12 times of the Net Monthly Income and EMI/NMI
ratio <= 40%
Repayment Period Maximum 36 Months or residual service whichever is less
1.50% of the loan amount plus GST, with a minimum of Rs 1000 plus
Processing fee
GST
No second loan. Fresh loan with enhanced limit can be
2nd Loan
sanctioned after closing the existing loan.

SBI QUICK PERSONAL LOAN SCHEME

UNDER ONLINE PSB LOANS LTD (OPL) PORTAL
THROUGH CONTACTLESS LENDING PLATFORM (CLP)
Parameter Criteria
Purpose Any personal purpose other than speculative purpose

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Eligible Employer
Eligible Employee
Net Monthly Income
Loan Amount
EMI/ NMI
Age
Repayment Period
Repayment Mode
Processing Fee
CIC Score (CIBIL) CV
Security/ TPG
Pre-Payment/ Closure
Charges
Concession in Interest Rate
Pre-Sanction Survey (PSS)
Turn-around Time (TAT)
Sanctioning Authority
• Central & State Government
• Quasi Government
• Central & State PSUs
• Corporates (Private & Public Ltd.)
• Educational Institutions of National Repute (Institutions
covered under SBI Scholar Loan Scheme & Whitelisted
Institutes under Student Loan Scheme)
As applicable under Xpress Credit scheme (Customers not
maintaining their salary accounts with our bank are also eligible
and have to apply through CLP Portal only), from CLP site
(www.psbloansin59minutes.com)
Minimum Rs.15,000/-
Minimum: Rs.24,000/- Maximum: Rs.20,00,000/- subject to 24
times NMI
<= 50%
21 – 58 years
Maximum 72 months or residual service period whichever is less
Salary A/c with our Bank: SI, Salary A/c with other Bank: NACH/
ECS
1.50% of the loan amount plus GST (Minimum Rs. 1000,
Maximum Rs 15000), For Customers not maintaining salary
account with the bank: Processing Fee to be recovered upfront
by Cash/ Cheque/ DD
Minimum 670
NIL as applicable under Xpress Credit Scheme
3% of the prepaid amount, as applicable under Xpress Credit
Scheme
No Discretionary power to Circle functionaries.
For Customers maintaining salary accounts with the
bank: As applicable under Xpress Credit Loan Scheme
• For Customers not maintaining salary accounts with
the bank: Mandatory
• Customers with no requirement of PSS: 1 working day
• Other customers: 2-3 working days
• Any Scale-III and above branch in Rural & Semi-urban
areas & any Scale-II and above branch in Urban & Metro
areas.
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• Any branch near to place of posting or, current/

permanent address of the applicant may process and
sanction these loans, as per Delegation of Financial
Powers & incumbency mentioned above

XPRESS CREDIT LOANS: INTRODUCTION OF TWO NEW VARIANTS

REAL TIME XPRESS CREDIT LOAN (RTXC)-{PRODUCT CODE-6450-4246}
REAL TIME XPRESS CREDIT-ELITE (RTXC-ELITE)-{PRODUCT CODE-6450-4245}
(Circular No.: NBG/PBU/PL-XPRESS/9/2022 – 23 dt 21.05.2022)

With a view to enhance the customer experience, we have now come out with two new variants of Xpress
Credit viz. Real Time Xpress Credit (RTXC) and Real Time Xpress Credit –Elite (RTXC-Elite).These two
products will be available through YONO App (only on Android platform at present) and will be a real
time system based processing and sanctioning process based on digital validations, real time income
calculation, real time CIC checks, real time eligibility calculation, real time Digital Document Execution
(DDE) and real time disbursement. In the entire process, no manual processing/sanctioning will be
involved.

Key Features of the Process:

• Paperless execution of loan agreements/contracts (Digitally Authenticated Contracts as per IT Act).
• Aadhaar OTP based e-sign.
• Secure, Safe, Next-Gen Security Measures and Robust System.
• Step-by-Step Guided e-mail and SMS Communication System.
• Digitization of entire loan documentation processes viz. loan application, loan agreements, stamping
and signature.
• Doing away with the physical storage of loan documents.
• MIS & Audit trail will be available in case of requirement.
• Enabling Instant loan disbursement.

Advantages of the New Process for Xpress Credit:

a. To the Customer:
• Real Time sanction of loan.
• No need to fill in the manual Application.
• Customer input required in 8 fields only
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• Eight screen journey for the customer

• Speedy Disbursement after documentation.
• Resultant Enhanced Customer Experience.

b. To the Branch:
• No processing, No sanctioning.
• Single click disbursement after documentation (no separate processes to be initiated for loan account
creation, SI set up, etc.).
• Basic enquiries like Eligibility, Loan Amount, EMI, Tenure, etc. handled digitally, thus reducing staff
engagement.
• Scrutiny of application and its validation through credit engine.
• Increase in overall efficiency thus portraying a better image.

c. To the Bank:
• Customer delight resulting in increased business.
• Effective utilisation of available staff by eliminating repetitive work like attending basic queries, RLMS
data entry, etc. which can be handled by digital processes.
• Healthy addition to Xpress Credit portfolio.

Parameter Criteria
Bank’s existing customers will be eligible for this product if they
fulfil following eligibility criteria:
• Account should be opened with a Govt./ Defense Salary
Package (SP) product code. (viz. CGSP, DSP, ICGSP, PMSP,
PSP, RSP, SGSP)
• Account should be in single name (Joint Accounts not eligible).
• Residential Status of the Customer should be “Resident Indian.”
Eligibility Criteria • Account should be KYC compliant.
• Age of the customer should not be more than 58 years.
• There should not be more than one existing Xpress Credit loan
(including PAXC/ Insta Top up loans) account under the CIF.
• Not more than one RG3 history in last 6 months (open + closed).
• None of the existing DL-TL/CC-OD accounts (open status) under
the CIF should have RG- 2 and above.

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• >=Rs 15000/- for RTXC

Minimum Net Monthly Income
• >=Rs 100000/- for RTXC-Elite
For RTXC
• Minimum Loan amount: Rs. 25000/-
• Maximum Loan amount: ₹ 30,00,000/- subject to 24 times NMI
and EMI/NMI ≤50%.
Loan Amount
For RTXC-Elite
• Minimum Loan amount: Rs. 25000/-
• Maximum Loan amount: ₹ 35,00,000/- subject to 24 times NMI
and EMI/NMI ≤60%.
Nature of Facility Term Loan
Minimum Term: 6 Months. Maximum: 72 months {
Subject to EMI/NMI ≤ 50% & EMI/NMI≤ 60% for RTXC Elite}
Loan Tenure
Loan should be repaid by the time customer attains the age of 58
years
Check off No Check off required
Applicants may avail second loan any time after availing first loan
subject to overall satisfactory track record and EMI/NMI ratio not
Second Loan exceeding 50% (60% in case of Xpress Elite). Maximum Two
Xpress Credit/Insta Credit/PAXC accounts within the overall
product limit will be allowed.
RTXC sanction will be valid for a period of 7 days within which
Validity of Sanction
customer will have to visit the Branch for documentation.

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Asset Product – Pension Loan

( Master Circular No.: NBG/PBU/PL-PENSION/40/2021 – 22 dt.22.03.2022)

(Modifications Circular No.: NBG/PBU/PL-PENSION/21/2022 – 23 dt 16.07.2022)

Pension Loan Variants
SCHEME SBI PENSION LOAN JAI JAWAN PENSION LOAN

Purpose for any legitimate personal for any legitimate personal purpose
purpose
Facility Demand Loan Term Loan
Eligibility (A)Pensioners: Pensioners of Armed Forces, including Army, Navy and
(a) All Central, State Air Force, Paramilitary Forces (CRPF, CISF, BSF,
Government pensioners, and ITBP, etc.), Coast Guards, Rashtriya Rifles and Assam
SBI Pensioners whose Rifles whose Pension Payment Order is with us.
pension accounts are with us,
In addition to the extant norms, such Defense Regular
and their PPOs are maintained
Pensioners whose PPOs are migrated to PCDA,
by Centralized Pension
Allahabad, under SPARSH will also be included
Processing Centre (CPPC) of
SBI. In addition to the extant
norms, Defense Regular
Pensioners whose PPOs are
migrated to PCDA, Allahabad,
under SPARSH will also be
included
(b) Pensioners whose
pensions are disbursed by
Govt. Treasuries by
cheques drawn in favor of
our branches as per
mandate of the pensioner
are also eligible subject to
the following conditions:
(i) The original Pension
Payment Order (PPO)
remains in the custody of
the treasury and the

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pensioner gives a mandate

to the Treasury for payment
of pension through a
particular branch of a Bank.
(ii) The pensioner
concerned furnishes an
irrevocable undertaking that
he will not amend his
mandate to the Treasury to
pay his pension from the
branch, during the currency
of a loan availed by him from
SBI. (iii) The Treasury
concerned consents in
writing that it will not accept
any request from the
pensioner to transfer his
pension payment to any
other bank/ Branch till an
NOC is issued by the Bank.
The (iii) condition mentioned
above is waived with the
following condition.
i) CIBIL score of pensioners
to be more than 658 (-1 may
be considered in case of no
credit history).
ii) RSM Score in LOS to be
more than 45 (Grade 1 to
Grade 6), as against the
clear sanction of more than
40 (Grade 1 to Grade 7).
A premium of 50 bps to be
charged over the applicable
card rate is applicable
Age up to 76 years at the
time of loan sanction

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Security (A) Primary Security: - NIL

(B) Collateral Security: - NIL
(C) Third Party Guarantee
(i) For Pensioners: The requirement of third-party guarantee has been waived
for Regular Pensioners (including SBI Regular Pensioners) whose PPOs
are already maintained by our Bank, subject to Pension Account being
KYC Compliant with Mobile Number registered in CBS.
(ii) Other Regular Pensioners: Third party guarantee (TPG) of the spouse
eligible for family pension. In the absence of the spouse, TPG of any other
family member or a third party worth the loan amount. (iii) For Family
Pensioners: Third party guarantee of a person who has been maintaining
a satisfactorily conducted account with the Bank; preferably of the
son/daughter of the family pensioner.
For all other pensioners, TPG of spouse who in eligible to receive family pension
should be obtained. In the absent of spouse, TPG of any other member/ Third
party.

QUANTUM Pensioners: There is no minimum age bar under the scheme.

OF LOAN Minimum Rs.25,000/= The Maximum age at the time of availment of loan
Maximum of 18 months’ should be 76 years
pension with a ceiling of Minimum Rs.25,000/=
Rs.14.00 lacs
A. Maximum of 36 months’ pension with a ceiling
Family pensioners: of Rs.14.00 lacs for pensioners up to 56Years.
Minimum Rs.25,000/=
Maximum of 18 months’ B. Maximum of 18 months’ pension with a ceiling
pension with a ceiling of of Rs.14.00 lacs for above 56 years of age
Rs.5.00 lacs

MARGIN NIL NIL

EMI/NMI Regular Pensioners 50% 50.00%
Family Pensioners 33%

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PERIOD/R Regular & Family Pensioners: maximum 72 months, subject to full repayment of
EPAYMEN maximum 72 months, subject to loan by 78 years of age
T full repayment of loan by 78 years
of age

Processing 1. SBI Pensioners & Defense No processing fee to be charged.

Fee Pensioners: No processing fee.
2. Other Regular Pensioners: flat
1.00% + GST (minimum of
Rs.1000/- and Maximum Rs.10000
+ GST)
3. Family pensioners: 0.50%+ GST
(minimum of Rs.500/- and
maximum Rs. 2500+ GST)

Provision 2nd loan can be sanctioned to 2nd loan can be sanctioned to Pensioner and
of 2nd Loan Pensioner and Family pensioner Family pensioner any time after disbursement of the
any time after disbursement of the 1st loan provided the 1st loan has been satisfactorily
1st loan provided the 1st loan has conducted
been satisfactorily conducted and is and is regular at the time of sanction of 2nd Loan.
regular at the time of sanction of 2nd There cannot be more than 2 Pension Loans
Loan. Customer may opt for a standing in the name of a borrower.
second loan or close the existing However, this is subject to the overall EMI/NMP ratio
loan and open a new loan with of 50% for Pensioner and 33% for the Family
enhanced limit but there cannot be Pensioner.
more than 2 Pension Loans The sum total of outstanding in the 1st loan and limit
standing in the name of a borrower. of 2nd loan in no case should exceed the pensioner’s
entitlement at the time of availment of 2nd loan.
However, this is subject to the
overall EMI/NMP ratio of 50% for
Pensioner and 33% for the Family
Pensioner.
The sum total of outstanding in the
1st loan and limit of 2nd loan in no
case should exceed the pensioner’s
entitlement at the time of availment
of 2nd loan.
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Pension loan to PSU Pensioners

The potential of quality business from retired employees from State PSUs (eligible under Xpress
Credit Scheme) where PPOs are maintained by the PSUs themselves was untapped and therefore
it has been decided to modify our Pension Loan scheme as under:

Particulars Norms
• Pensioners of all such PSUs will be extended Pension Loans which
are already covered under our Xpress Credit scheme, subject to
approval of PSU by CGM (Circle).
• In case of Loss-Making state PSU not covered under Xpress Credit
scheme & enough potential is available for Pension Loans, approval
to be obtained from DMD (RB) as in Xpress credit Scheme.
• All such loans will be sanctioned subject to following stipulations:
(a) RSM Score in LOS to be more than 45 (Grade 1 to Grade 6), as
against the clear sanction of more than 40 (Grade 1 to Grade 7).
(b) The pensioner concerned will furnish an irrevocable
undertaking that he will not amend his mandate to the PSU to pay
his pension from that branch, during the currency of a loan availed by
him from SBI.
Pensioners of PSUs (c) Regarding obtention of consent/undertaking from the PSU’s
whose PPOs are Pension Disbursing Authority, there may be two scenarios
maintained by PSU Scenario 1: In case, the PSU concerned consents in writing that it
themselves will not accept any request from the pensioner to transfer his pension
payment to any other Bank/ Branch till a NOC is issued by our Bank/
Branch, the proposal to be treated at par with Treasury Pensioners
with NOC. Applicable ROI to be 255 bps above 2-yr MCLR (with no
reset).
Scenario 2: In case the PSU does not give a written consent as
mentioned above, CIBIL score of pensioners should be more than
658 for consideration under the scheme (-1 may be considered in
case of no credit history) & a premium of 50 bps to be charged over
the card rate. Applicable ROI to be 305 bps above 2-yr MCLR (with
no reset).
• Details of such loan and the undertaking received from the
Pensioner is to be advised to concerned PSU invariably.

All other terms & conditions as stipulated under Pension Loan scheme will strictly be
Applicable.

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PRE-APPROVED PENSION LOANS

Pension loans upto Rs.5.00 lakhs will be offered as pre-approved. Simplified 4 click process for
availing loan through app/portal with instant disbursement. End-to-end digitized process
(no branch visits and no documentation). The eligible customers will be pre-selected on the basis of the
analytic engine. Rule engine-based loan offers to different categories of existing P-segment Customers.
ELIGIBILITY CRITERIA for PRE-APPROVED PENSION LOANS

Purpose Any personal purpose other than speculative

purposes
• Bank’s existing customers will be pre-
selected for this product offering based on
following eligibility criteria
• Customer’s PPOs must be with Bank;
Treasury & family Pensioners are not
eligible.
• Account should be in single/joint name.
• Residential Status of the Customer should
be “Resident Indian.”
• Account should be KYC compliant. Any of
Aadhaar/ Voter ID / Passport / Driving
License/PAN should be available at CIF.
• Age of the customer should be less than
72 years (71 years and 9 months at the
Eligibility time of data extraction).
• There should not be any existing Pension
account under the CIF.
• None of the existing loan accounts under
the CIF should have SMA 1 and above.
• None of the existing loan accounts under
the CIF had been NPA in last 12 months.
• None of the existing loan accounts of the
customer any Bank/Financial Institutions
should have been NPA (i.e., DPD>90
days) in last 12 months.
• There must be at least one credit every
month for last 12 months.
• The pre-selected customers will be
intimated about their eligibility / selection

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for PAPL through SMS/ email/ pop-up

Availability of the Facility
Loan Amount
messages/ in-app notifications/the offer
section of Internet Banking.
• PAPNL will be offered to only those
pensioners whose family details are
available in pension database at the time
of data extraction.
PAPNL is available only through “YONO” App.
The loan account will be parked in the Home
Branch (which maintains the Savings Account
considered for PAPL eligibility)
Minimum Limit: ₹ 25000/-.
Maximum Limit: 18 times NMP subject to
maximum of ₹5,00,000/- Subject to EMI/NMP
≤50%

NMP= Median of Monthly pension amount for

Loan Tenure
Number of PAPNLs Availed
last 6 months
Maximum 72 months (repayable by 78 years of
age)
Only one PAPNL can be availed at any point of
time. Multiple PAPNLs are not permitted even if a
customer has availed lower loan amount than
their eligibility/ loan offered.
In case the loan account is closed before any of
the month end, a customer will not be eligible for
taking a new loan till the start of next month,
which will also be subject to their eligibility for
PAPNL/PAPL facility in the subsequent month.

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INSTA PENSION TOP UP LOAN on YONO platform

Feature Detail
Purpose Any personal purpose other than speculative purpose
Existing Pension Loan Borrowers who fulfill the following conditions
will be offered “Insta Pension” Top Up Loan
• Minimum existing Pension Loan Limit of Rs 1 lac
• Minimum residual maturity of Pension Loan - 1 year
• Satisfactory repayment record for the last 1 year
Eligibility • The customer should not have two Pension Loans
• No instance of the Pension Loan slipping to RG-3 and beyond in
the last 1 year
• Existing Pension Loan account should not be RG-2 and beyond
at the time of scrubbing
• Repayment of Loan will be only through SI

20% of Pension Loan Limit (Existing Loan Limit)

Loan Amount
Minimum: Rs. 20,000/- Maximum: Rs. 2,80,000/-

Minimum 12 months to maximum 36 month.

Loan tenure

At any point of time, only 1 “Insta Pension” will be allowed to exist

Number of Loans
under the proposed scheme.
A processing fee of 1% of the loan amount plus applicable GST will
Processing Fee
be levied under the product subject to minimum Rs 1,000 and
Maximum Rs. 10,000 plus GST

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Asset Product – Education Loan

(Master Circular No.: NBG/PBU/PL-EDUCATION/43/2021 – 22 dt 31.03.2022)

Education Loan
General Instructions
Student Co-Borrower Eligibility • The student is the primary borrower and co-borrowers are
taken for all type of education loans except for a few Scholar
loan products, (with specific waivers as explained under
Scholar Loan Scheme).
• Borrower Eligibility:
• Should be an Indian National.
• Loan can be sanctioned to students, who are
NRIs/PIO/OCI.Where the applicant is not available in
India for execution of Loan Documents, this can be done
through POA
• Should have secured admission to a higher education
course in recognized Institutions in India or Abroad
through Entrance Test/Merit Based Selection process
after completion of HSC (10 plus 2 or equivalent).
• If there is no Entrance Test/ Merit based selection
procedure, securing admission to a higher education
course in a recognized institute may be considered as
eligibility for loan.
• Our scheme does not prescribe any age limit for the
students availing the loans.
• Co-Borrower eligibility:
• The Co-Borrower should ideally be a resident Indian.
However, NRI parents in case of Collaterised loans can
be considered as Co-Borrower or Guarantor, if they are
providing collateral security which is located in India. In
such cases, another resident Indian to be taken as a
Guarantor or Co-Borrower. In case of non Collaterised
loans (Scholar Loans & loans below Rs.7.5 lac), only
resident Indians to be considered as Co-Borrower.
• Co-Borrower should be parent/natural guardian of the
student borrower. In case of married person, co-obligator
can be spouse or the parent(s)/parents-in law.

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Eligible Courses
CIC Scores of Borrower/
Borrower/ Guarantor
Expenses Considered for the Loan •
• Wherever parents/guardians are not there, the branches
may consider grandparent as co-borrower to the loan.
• In cases where the parent/ natural guardian/
spouse/grandparent are not alive, the Operating Units
may consider a ‘Major’ sibling/Relative/Third party
acceptable to the Bank as co-borrower to the loan
account.
• All courses eligible under various education loan
variants/schemes offered on-campus, off – campus and
Online mode will be eligible for loan subject to compliance
of usual due diligence measures and fulfilment of terms &
conditions stipulated under the existing provisions
Co • Borrower/ co-borrower/ guarantor should not have any
adverse credit history. In case of secured loans CV
CIBIL score should be -1 or more than 591 and in
unsecured loans CV CIBIL score should be -1 or more
than 685.
• Report from 2 preferred CICs (Presently, CIBIL-Primary
and CRIF High Mark-Secondary) to be obtained for
secured loans with limits > Rs.5 lac and Unsecured loan
with limits > Rs.4 lac. In case of No Hit, preferred CICs
to be substituted with Experian and Equifax respectively.
• In case, the co-borrower/ guarantor is not eligible due to
poor credit score as prescribed, he/she can be
substituted in order of priority (other parents, spouse,
parent-in-law, grandparents, Brother, relatives or a 3rd
Party with good financial standing as a co-borrower). In
case of Collaterised loans, the property owner can be
taken as Co-Borrower.
Fee payable to college/school/hostel (including Boarding
& Lodging).
• Where the student will be making his own boarding and
lodging arrangements, the sanctioning authority is
authorized to fund boarding and lodging expenses on the
basis of estimate submitted by the student/parent,
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provided such expenses are not more than those

charged by the educational institution for boarders.
• In case, the institution does not provide for boarding and
lodging facilities, such expenses will be accessed based
on the reasonable boarding & lodging charges
applicable to the area. For studies abroad, living
expenses (boarding & lodging) are generally mentioned
in the admission letter issued by the university/institute.
• Examination/Library/Laboratory fee.
• Purchase of
books/equipment/instruments/uniforms/computer at
reasonable cost, if required for completion of the
course/any other expenses required to complete the
course- like study tours, project work, thesis etc.
considered for loan should be capped at 20% (30% for
Scholar List AA, A & B and Govt Institutes) of the
total tuition fees payable by the students who do not
get any concessions/remissions.
• Caution deposit /building fund/refundable deposit
supported by Institution bills/receipts the amount
considered for loan should not exceed 10% (20% for
Scholar List AA, A & B and Govt Institutes)of the
tuition fees for the entire course.
• Travel expenses/passage money for studies abroad.
• In case of Doctorate Program (Ph.D.) courses in
India/Abroad, the quantum of finance for such courses
should be arrived at after factoring the
Scholarship/Fellowship/Honorarium etc., available to the
student.
• Purchase of computers - essential for completion of the
course.
• Any other expense required to complete the course - like
study tours, project work, thesis, etc.
• Cost of a two-wheeler upto Rs. 50,000 can be included
in the expenses considered eligible for finance where the
loan amount is secured by a suitable third-party
guarantee and/or tangible collateral security.
• For courses under Management Quota seats considered
under the scheme, fees as approved by the State
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Government/Government approved regulatory body for

payment seats will be taken subject to viability of
repayment.
• Tax collection at Source (TCS) must be collected on
remittances under Liberalized Remittance Scheme
(LRS) for amount in excess of Rs. 7 lakhs in a financial
year for remittance out of India through a single
remittance or cumulatively over multiple remittances.
The provision is applicable from 01.04.2020 and will be
made effective from 1st October 2020.TCS applicable on
Bank’s Loan and Borrower’s Margin as stipulated
@0.50%and @5.00% respectively. Both the
components of TCS (on Bank’s Loan and Borrower’s
Margin) as part of education loan/project cost in the list
of eligible expenses being considered for Education
Loans.
• Contingency expenses upto 5% to meet unforeseen
requirement of Student borrower under Global Ed-
Vantage loan only.
• Premium of Edu-Shield/ ‘RiNn Rakhsha’

Note: In terms of IBA guidelines, insurance premium for student

borrower can be considered as expense for the loan. IBA has
advised that while it is not compulsory for all students taking
loan from the Bank to avail the Insurance facility, the branches
should explain to the student/parent borrowers the benefits
arising out of taking an insurance policy covering life and make
efforts to market the product.
Insurance • In some Education Loan products there are interest rate
concessions offered which outweighs the cost of
premium, which need to be explained to the students.
• As a measure of de-risking the Education Loan portfolio,
every effort must be made that the students who are
availing Education Loans above Rs. 7.5 Lakhs may be
suitably covered by Life Insurance Policy.
• The policy should cover the loan amount plus
approximate estimated accrued interest as at the
commencement of the repayment, for the full tenure of
the loan i.e., study and moratorium period plus the loan
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repayment period as applicable. However, in case of

students who are eligible for Interest Subsidy, the
insurance policy will be obtained for the loan amount
only.
• Though various insurance policies are available in the
market, the students may be appropriately counselled to
obtain suitable insurance policy from the SBI Group viz.,
Rinn Raksha OR Shield. However, the choice of
Insurance Company should be left to the borrower and
the policy needs to be assigned in favour of the Bank.
Since, Rinn Raksha is a Group Credit Life Insurance
Policy no separate assignment is required, however,
Smart Shield has to be assigned in favour of the Bank.
• Expense estimates for studies in India is available in INR
and loans are assessed and approved in INR. In case of
Studies abroad, Expense estimates are in foreign
currencies, but loans are assessed in INR and may
result in gaps due to fluctuation in exchange rate.
Therefore, Expenses in terms of INR need to be
calculated based on TT Selling rate of the captioned
Foreign Currency.

Top Up Loans • Education Institutions often enhance the fees during the
course period increasing overall cost. In case of studies
abroad, the overall cost may go up due to depreciation
of INR vis-à-vis foreign currency. The funding of
enhanced cost may be considered on a case-to-case
basis subject to overall within the Scheme viz.,
Student/Scholar/Global Ed-vantage, and coverage of
additional loans with collaterals security as prescribed
under the scheme. In both the cases, a second Top up
loan can be sanctioned, subject to prescribed margins.
• Students often opt for higher education after completion
of the first course. Second loan (Top Up Loan) for further
studies, is permitted to pursue a professional course in
India or abroad, subject to required margins and
securities. For second loans sanctioned during the
moratorium period of the first loan, the repayment of the
1st loan will be extended and moratorium and loan

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payment period of both the loans will be aligned based

on the moratorium applicable to the 2nd Loan. The
combined repayment to be shifted to one year after the
completion of Higher Studies, or 6 months after taking
up a job whichever is earlier.
• Where the student is pursuing higher studies by availing
Second Loan from some other Bank, there will be no
change in the moratorium period.
• For Students opting for loans from SBI for Higher
Studies, already having Education loan account with
other Banks, the proposal will not be entertained, unless
the previous loan is closed.
• When the students opt for higher studies without availing
2nd (Top Up) Loan from our Bank due to the reasons (i)
Availability of Scholarship for the Higher studies or (ii)
Concessional /Low fee structure, moratorium period can
be extended for the duration of the higher studies also,
subject to submission of documentary evidence on
Scholarship & fee structure for higher studies.
• The Top-up education loan may be preferably given from
the same branch from where first loan was availed.
However, if the student finds this inconvenient, the
second loan can be sanctioned at a branch closer to the
place of co-borrower & Collaterals.

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Take over of Education loans • This scheme is applicable for all the loans sanctioned
(Circular No.: NBG/PBU/PL- with limits of Rs.10 lakhs and above.
EDUCATION/40/2022 – 23 dt • Security requirement:
03.11.2022) Scholar Loan - At par with full-time Scholar Loan
Student Loan - Fully collateralized
Global Ed-Vantage Loan - Fully collateralized
• Account may be taken over anytime during the currency
of the loan (which includes Course period, Moratorium &
repayment period).
• Loan should be standard in the books of other Bank.
• Loan may not be fully disbursed.
• A top up loan can also be considered if the student
wishes to avail, subject to submission of relevant
documents.
• As the loan amount will be greater than Rs. 10 Lakhs,
reports from two CICs must be obtained (as per existing
instructions).
• CIC SCORE should be as under: i) If no credit history:
Minus 1 (-1) or between 101-200. ii) If credit history
available: - Collateralized Loans- Minimum score of 591
and above - Non-Collateralized Loans- Minimum score
of 685 and above.

EDUCATION LOAN: INTEREST SUBSIDY SCHEMES

Central Sector Interest Subsidy Scheme, 2009 (Applicable for loans taken w.e.f. 01.04.2018)

• The scheme provides full interest subsidy during the moratorium period on model education
loans without any collateral security and third-party guarantee, for pursuing
technical/professional courses in India.
• Students whose annual gross parental/ family income is up to Rs.4.5 lakhs are eligible under
the scheme.
• The Scheme is restricted to students enrolled in professional/ technical courses only from NAAC
accredited Institutions or professional/ technical programmes accredited by NBA or Institutions
of National Importance or Central Funded Technical Institutions (CFTIs). Those Professional
Institutions/ programmes, which do not come under the ambit of NAAC or NBA, would require
approval of the respective regulatory body viz, approval of Medical Council of India for Medical
courses, Nursing Council of India for Nursing courses, Bar Council of India for Law etc.
• Subsidy is admissible only once either for undergraduate or post graduate or integrated course.

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• Under the scheme, education loan is provided without any collateral security and third-party
guarantee and for a maximum amount of Rs. 10 lakhs.
• The Scheme shall continue to be implemented through Canara Bank, which is the Nodal Bank
for the Ministry of Human Resource Development.
• Interest Subsidy under this Scheme shall not be available to those students who discontinue
their course midstream, or who are expelled from the Institution on disciplinary or academic
grounds.

PADHO PARDESH Scheme of Interest Subsidy on Education Loans for overseas studies for
students belonging to minority communities.

• This is a Central Sector Scheme to provide interest subsidy to the student belonging to the
communities declared as minority communities in terms of section 2 (c) of National Commission
for Minorities Act, 1992.
• Under the Scheme, interest payable by the students availing of the Education Loans of the IBA
for the period of moratorium (i.e., course period, plus one year or six months after getting a job,
whichever is earlier) as prescribed under the Education Loan Scheme of the IBA, shall be borne
by the Government of India for educational loans for Overseas Studies to pursue approved
courses of studies abroad at master’s and Ph. D levels. The Candidate will bear the principal
installment and Interest beyond moratorium period.
• The student should have secured admission in the approved courses at Masters, M. Phil or Ph.
D levels abroad for the approved courses.
• Total income from all sources of the employed candidate or his/ her parents/ guardians in case
of unemployed candidate shall not exceed Rs.6 Lakhs per annum.
• It is to be ensured that students from the minority communities, who may also belong to
SC/ST/OBC category, do not avail interest subsidy from other sources for the same purpose.
The interest subsidy under the scheme shall be available to the eligible students only once,
either for master’s or Ph.D. levels.
• To the extent possible, the benefit of Interest Subsidy will be given to notified minority
communities in the ratio of their population. Preference will be given to the girl candidates.

Dr. Ambedkar Central Sector Schemes of Interest Subsidy on Education Loans for Overseas
Studies for Other Backward Classes and Economically Backward (Effective from FY 2014-15)
ACSIS

• The Ministry of Social Justice and Empowerment, Government of India has proposed to
implement Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Education Loan for

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Overseas Studies for OBCs and EBCs to promote the educational advancement of students
from these Classes.
• The objective of the scheme is to award interest subsidy to meritorious students belonging to
other weaker sections/ economically weaker sections of the society so as to provide them better
opportunities for higher education abroad and enhance their employability.
• As per the instructions of Ministry of Social Justice and Empowerment, Government of India,
income criterion for Other Backward Classes (OBCs) & Economically Backward Classes (EBCs)
has been revised as Rs.8.00 lakhs per annum.
• 50% Interest Subsidy will be given to the girl candidates.

Scheme of Interest Subsidy on Educational Loans for Overseas Studies for the Students
belonging to the Economically Backward Classes (EBCs)

• The is a Central Sector Scheme to provide interest subsidy to the student belonging to the EBCs
on the interest payable for the period of moratorium for the Education Loans under the Scheme
of Interest subsidy on Educational Loans for Overseas Studies to pursue approved courses of
studies abroad at master’s and Ph.D. level.
• Total income from all sources of the employed candidate or his/her parents/guardians in case
of unemployed candidate shall not exceed Rs.2.50 lakhs per annum. (As per revised guidelines,
income criterion has been changed to8 Lakhs for the period of 01.07.2020 till 31.03.2021).
• Under the Scheme, interest payable by the students availing of the Education Loans of the IBA
for the period of moratorium (i.e., course period, plus one year or six months after getting a job,
whichever is earlier) as prescribed under the Education Loan Scheme of the IBA, shall be borne
by the Government of India for educational loans for Overseas Studies to pursue approved
courses of studies abroad at master’s and Ph. D levels. The Candidate will bear the principal
installment and Interest beyond moratorium period.
• 50% Interest Subsidy will be given to the girl candidates.

NATIONAL PORTAL FOR CREDIT LINKED GOVERNMENT SCHEMES – CSIS, ACSIS, PADHO
PARDESH

Government of India has rolled out a single portal (National Portal) for sourcing of loan applications
eligible for subsidy schemes being delivered through Banks. All the students eligible for subsidy in any
of the three subsidy schemes should apply for education loans in our bank through National Portal
only.

The National Portal for Credit Linked Government Schemes, under the name of Jansamarth Portal
(www.jansamarth.in), connects all stakeholders like beneficiaries, financial institutions, Central/State

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Government Agencies, & Nodal Agencies on a common platform. It has Integration with Unique
Identification Authority of India (UIDAI), National Securities Depository Limited (NSDL), Central Board
of Direct Taxes (CBDT), Credit Bureau, Udyam Portal and National E-Governance Services Limited
(NeSL) for digital verification. All the mandatory checks are carried out online thus reducing the risk of
any fraudulent activity to a large extent.

CREDIT GUARANTEE SCHEMES FOR EDUCATION LOANS

Credit Guarantee fund scheme for Education Loans

• GoI through Ministry of Human Resource Development (MoHRD), Department of Higher

Education has notified the Credit Guarantee Fund Scheme for Education Loans (CGFSEL) for
loans sanctioned after 15th September 2015.
• An amount of Loan sanctioned should be up to ₹ 7.50 lakhs. Guarantee cover can be obtained
on the Outstanding Loan Amount i.e., guarantee can be obtained only after full or partial
disbursement of the loan.
• Interest charged to borrower by MLI should not be more than 2% over the MCLR.
• Loan account should be a Standard Account at the time of applying for a guarantee.

• Eligibility of Borrower: An Indian National, Minimum Qualification - HSC (10 plus 2 or equivalent),
should have secured admission to a higher education course in recognized institutions in India or
Abroad.
• No Collateral security or third party/ies guarantee should be attached with the Loan.
• Annual Guarantee Fee (AGF) of 0.50% p.a. of the outstanding amount as on the date of application
of guaranteed cover is absorbed by the Bank and is paid by the Corporate Centre in a centralized
manner to keep the Guarantee Cover alive till the expiry date of the Guarantee.

Credit Guarantee Fund Scheme for Skill Development (CGFSSD)

• The Scheme shall be known as the Credit Guarantee Fund Scheme for Skill Development
(CGFSSD). It shall come into force from the date of notification by the GoI. Skill Loans
sanctioned on or after July 15, 2015, will be eligible for coverage under the Scheme.
• Amount of loan sanctioned should range from ₹ 5000 to ₹ 150000 & Interest charged should
not be more than 1.5% over the Base Rate / MCLR / EBLR.
• Eligibility of Borrower: An Indian National, Minimum Qualification – as per National Skill
Qualification Framework (NSQF) Courses eligible to be run/supported by institutions/organizations
recognized by NSQF/Govt. of India/State Govt.

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• For availing the guarantee coverage, the Member Lending Institution shall pay Guarantee Fee of
0.125% per calendar quarter (i.e., 0.50% p.a.) on the quarter end outstanding portfolio balance (skill
loans). The Guarantee Fees charged on the Credit Guarantee Cover should be absorbed by the
MLI.

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 VIDYA LAKSHMI PORTAL (VLP)

`• Ministry of HRD along with the Department of Financial Services, Government of India has
launched a common portal “Vidya Lakshmi Electronic Platform” for students to apply for
education loans and to facilitate tracking and follow-up of the loan during its life cycle. Vidya
Lakshmi Electronic Platform was launched by Hon’ble Prime Minister on 15th August 2015. This
will minimize the need for personal interaction between the students and the disbursing agencies
and provide transparent processing of student loan.
• The IBA has engaged the services of NSDL e-governance for developing this portal. The main
features of this portal are as under:
• Single window for students about information of government scholarships and education loans
of banks.
• Single loan application for students for all banks connected to the portal.
• Linkages of portal to banks’ systems
• Dashboard for students to track status of loan applications
• Mechanism for students to communicate with banks.

Banks can reap the following benefits viz.

• Economies of scale may enable reduction in charges.

• Centralised information and tracking of education loans and MIS/Dashboard for DFS/MoHRD
• Centralised Grievances Redressal mechanism for Education Loans.
• In case of our Bank, Vidya Lakshmi Electronic Platform (VLP) is linked with OCAS, the online
application site for Retail Loans so that the leads fed into Vidya Lakshmi Electronic Platform are
transmitted and monitored by bank effectively. Operating units have to promptly deal with these
leads as the status of these lead is uploaded in Vidya Lakshmi portal for the convenience of the
students to track their loan applications. The progress of the same is monitored by MoHRD and
Department of Financial services, MoF.
• Operating units are instructed to debit Rs. 100/- plus GST from all new
sanctioned education loan accounts of the respective borrowers which are routed through VLP
& credit to “Branch Commission Account”. The payment to NSDL will continue to be done
centrally from Corporate Centre.

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EDUCATION LOANS – DIFFERENT VARIANTS

SBI STUDENT LOAN SBI SCHOLAR LOAN GLOBAL EDVANTAGE
Extend financial
For deserving/
assistance to
meritorious students for
deserving/meritorious For pursuing full time
pursuing higher
Purpose students for pursuing regular courses in foreign
education in selected
higher education in India colleges/universities
Institutes in India
and abroad

STUDIES IN INDIA List AA, List A, List B & Regular Graduate

List C Degree/Post-Graduate
• Graduation, PG Degree/Diploma/Certific
including regular Categorization as per ate/Doctorate Courses in
technical and latest Circular No.: any discipline offered by
professional NBG/PBU/PL- foreign
Degree/Diploma EDUCATION/43/2022 Institutes/Universities in
courses conducted by – 23 dt 10.11.2022 USA, UK, Canada,
colleges/universities Australia, Singapore,
approved by Japan, Hong Kong, New
UGC/AICTE/IMC/ Govt.
Zealand and Europe are
etc.
be covered under the
• Regular Degree/
scheme.
Diploma Courses
conducted by
autonomous institutions
like IIT, IIM etc.
• Teacher training/
Nursing courses
approved by Central
Government or the
State Government.
• Regular Degree/
Diploma Courses like
Aeronautical, Pilot
Training, Shipping etc.
approved by Director
General of Civil
aviation/Shipping/conce
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rned regulatory
authority.

STUDIES ABROAD

• Job oriented
professional/technical
Graduation Degree
courses/Post
Graduation Degree and
Diploma courses like
MCA, MBA, MS, etc
offered by reputed
universities.
• Courses conducted by
CIMA (Chartered
Institute of
Management
Accountants) - London,
CPA (Certified Public
Accountant) in USA etc.

Loan Amount & LOAN AMOUNT: List – AA Without Minimum Loan Amount:
Security Studies in India – Max. Collateral: Up to Rs. 50 Rs. 7.5 Lakhs
Rs. 10.00 Lakhs. For Lakhs Maximum Loan Amount:
Medical Courses – Rs.30 With Collateral, No Rs. 1.5 Cr
Lakhs. (For higher loan upper cap
limit, CGM of the Circle
may approve deviation on List – A Without
case-to-case basis, with a Collateral: Up to Rs. 40 Security
maximum cap of up to Rs. Lakhs
50 Lakhs) With Collateral No upper loan amount above
cap Rs.7.50 lakhs and up to
Studies in Abroad –Max. Rs 20 lakhs:
Rs.7.50 Lakhs. List - B
Without Collateral: Up to Minimum 100% liquid and
SECURITY: Rs. 30 lakhs / or immovable or
With Collateral, No combination thereof equal

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Upto Rs. 7.50 Lakhs: Only upper cap to minimum 100% of limit
Co-obligation of parent(s) sanctioned
as the loans are covered
under Credit Guarantee List -C Without Above Rs. 20 lakhs
Scheme - CGFSEL. No Collateral: Up to Rs. Liquid- 100% of loan
Collateral Security or third-7.50 Lakhs. amount
party guarantee With Collateral: > 7.5 Or
- 30 Lakhs Immovable Collateral-
Security 110% of loan amount
Security Or
loan amount above Combination thereof equal
Rs.7.50 lakhs and up to loan amount above to minimum 110% of limit
Rs 20 lakhs: Rs.7.50 lakhs and up sanctioned
to Rs 20 lakhs:
Minimum 100% liquid and
/ or immovable or Minimum 100% liquid
combination thereof equal and / or immovable or
to minimum 100% of limit combination thereof
sanctioned equal to minimum
100% of limit
Above Rs. 20 lakhs sanctioned
Liquid- 100% of loan
amount Above Rs. 20 lakhs
Or Liquid- 100% of loan
Immovable Collateral- amount
110% of loan amount Or
Or Immovable Collateral-
Combination thereof equal 110% of loan amount
to minimum 110% of limit Or
sanctioned Combination thereof
equal to minimum
110% of limit
sanctioned
Margin* Up to Rs. 4 Lakhs: Nil Up to Rs. 4 Lakhs: Nil,• 15% for loans above
Above Rs. 4 Lakhs: Above Rs. 4 Lakhs & Rs.7.50
• 5% for studies in India up to Lakhs and up to Rs.20
• 15% for studies abroad Rs. 7.50 Lakhs – 5% Lakhs

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•
Above Rs. 7.50 Lakhs 10% for loans above
-Nil Rs.20 Lakhs and up to
Rs.1.50 crores.
* Borrower/ Co-borrower may be permitted to contribute the margin
component while availing the first disbursement from our Bank. Further, if a
borrower/ co-borrower has already made certain payments to the Institute
before availing loan from our Bank, the amount may be considered as ‘margin’
contributed by the borrower/ co-borrower and additional margin may not be
obtained while availing first or subsequent disbursement
Moratorium Moratorium - Course period + 1 year, or 6 months Moratorium: 6 months
after getting job, whichever is earlier. Repayment: Up to 15
Repayment: Up to 15 years after the years.
commencement of repayment At BPR / Non-BPR centres-
All branches are authorized
to source Education loan
proposals under various
schemes and the proposal
will be sanctioned by the
mapped
CPCs/RACC/RBOs and
loan maintenance will be
done by linked RACC & at
Non BPR centres loan
maintenance will be done
by the RACC / RACPC.
Processing Fee The Loans are sanctioned as Term Loans and to be repaid in EMIs over a
maximum repayment term of 15 years (180 EMIs) for Student, Scholar and Global
Ed-vantage Education Loans. For Skill Loans repayment term is shorter based on
loan quantum, as explained separately under the Product “Skill Loans”. The
repayment of EMI starts 12 months after the completion of the course or 6 months
after getting the employment, whichever is earlier for Student and Scholar Loan
Schemes. In case of Global Ed-Vantage Loans, repayment of EMI starts 6 months
after the completion of the course.

The total moratorium can be extended beyond 12 months to a maximum of 24

months (all inclusive) by giving extensions of 6 months at a time, considering

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employability of the student or as recommended by SLBC/ RBI to defer repayment

on account of national disasters.

If the student is not able to complete the course within the scheduled time,
extension of time for completion of course may be permitted for a maximum period
of 2 years (inclusive of initial moratorium and extended period). If the student is
not able to complete the course for reasons beyond his control, the sanctioning
authority may at his discretion consider such extensions as may be deemed
necessary to complete the course. In case the student discontinues the course
midway, appropriate repayment schedule will be worked out by the bank in
consultation with the student/parent.

SBI SKILL LOAN SCHEME

Purpose • Training Institutes/ Courses: Courses run by Industrial Training Institutes (ITIs),
Polytechnics, training partners affiliated to National Skill Development
Corporation (NSDC)/ Sector Skill Councils, State Skill Mission, State Skill
Corporation, preferably leading to a certificate / diploma / degree issued by such
organization as per National Skill Qualification Framework (NSQF) are eligible for
a Skill Loan.

Loan Amount• Minimum Loan Amount: Rs. 5000/-, Maximum Loan amount: Rs. 1,50,000/-
• For Govt. Institutions: No separate validation of fees
• For Private Institutions for loans above Rs. 50,000: Fee structure will be validated
by the PBBU of the concerned LHO.

Margin NIL
Processing Fee NIL
Nationality • The applicant should be an Indian National.
Security • No collateral or third-party guarantee will be taken.
• However, the Parent/ Guardian will execute loan documents along with the
student, as joint borrower (co-borrower).
• Spouse may be included as co-applicant wherever applicable, in addition to
Parent/ Natural Guardian
Repayment • Loans up to Rs 50,000: Up to 3 years
Period • Loans between Rs 50,000 to Rs 1 lakhs: Up to 5 years
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• Loans above Rs.1.00 lakhs: Up to 7 years

Moratorium • Course of duration up to 1 year: up to 6 months from the completion of the course
• Courses of duration above 1 year: 12 months from the completion of the course

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Asset Product- Pre-Approved loans

I. PRE-APPROVED XPRESS CREDIT LOANS (PAXC)

II. XPRESS CREDIT SCHEME - SBI INSTA CREDIT TOP UP LOAN ON INB & YONO
PLATFORM
III. PRE-APPROVED PERSONAL LOANS (NON CSP)
IV. REAL TIME EXPRESS CREDIT (RTXC) & RTXC ELITE
V. PRE-APPROVED PENSION LOANS (PAPNL) ON YONO
VI. PRE-APPROVED INSTA PENSION TOP UP LOANS (PAIPTL) ON YONO

The above Pre-approved loans are detailed in Personal loan and Pension loan topics

SBI- Online EMI & SBI- Offline POS- EMI for Consumer Durable & E- Commerce Purchase
General ▪ A digital loan product – “Online-EMI” enabling pre-approved customers of our Bank
to purchase consumer durables on EMI from online portals (presently from Amazon
and Flipkart) was launched in May 2018.
▪ While enhancing the product features of online-EMI, Bank has launched offline EMI
product – “POS -EMI” for SBI Debit Card Holders” enabling the same set of eligible
customers to purchase the consumer durables on EMI at Point of sales. i.e., at
approximately 40000+ major consumer durable brand outlets where pine labs POS
machines are deployed across the country
Eligibility ▪ CSP/DSP / Salaried Non- CSP customers / Non-Salaried Customers / HNI/Premier
Banking Customers / Existing Home Loan & Car Loan borrowers are selected on
the basis of pre- decided criteria & minimum CIBIL score.

Tenor ▪ 6/9/12/18 months

Purpose ▪ For Online Purchase of Consumer Durables/ Merchandise at Amazon & Flipkart
portals
▪ For purchase of Consumer Durables at POS through use of SBI Debit Card
Minimum ▪ Rs 8000/-
loan amount
Maximum ▪ Rs. 100000/-
loan amount

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Loan ▪ Equal to price of the product purchased subject to maximum eligibility limit,
Amount available limit and minimum loan amount prescribed
Moratorium ▪ NIL
Multiple ▪ Up to 3 Transactions (inclusive of both online and off-line purchases) are eligible
loans for EMI facility subject to maximum preapproved loan limit.
allowed
Processing ▪ No processing fee is charged by the Bank. However, Debit card authentication fee
Fee of Rs 2/- will be collected by the merchant.
Documentat ▪ Acceptance of Terms and Conditions mentioned on charge slip which is to be read
ion along with the detailed Terms & Conditions published on Bank’s website i.e www.
sbi.co.in
Pre- ▪ 3% of prepaid amount.
Payment
Penalty
Repayment ▪ INB/CBS to set SI to the customer’s SB account while creating the loan account
for recovering monthly installments. Branches can also recover the installments
and credit the amounts in these accounts for regularizing or closure of the account
Loan A/C ▪ On availing EMI facility using the Debit Card at POS or at online portals using
Opening registered mobile number, loan a/c is opened through automated process at the
concerned home branch of the customer, from the back end, by IT Dept. (EIS/ CB-
Dev).
▪ Each customer can make up to 3 transactions within the overall eligible limit and
different account will be opened for each transaction.
▪ In case of Failure of automated account opening process for POS EMI (6451-
4029), loan account will be opened manually at our Madame Cama Road Branch
(Branch code 08586) which is identified as nodal branch to open the loan account.
▪ After opening the loan account, our Madame Cama Road Branch (Branch code
08586) shall transfer the loan account in CBS (No loan documents involved) to the
concerned home branch of the customer within 2 days after opening the loan
account.
closure of ▪ The loan account will be closed with the recovery of last installment automatically,
Loan a/c if the closure balance exactly matches with the installment recovered through SI. If
not branch to close the account manually by recovering the closure amount from
SB account of the customer.
▪ Pre-mature closure of loan account is allowed subject to the 3% penalty prescribed
above on pre-paid amount.

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Online Loan Against shares Loans Against Scheme of SBI Mutual

Fund (LAMFU)
General ▪ The scheme envisages financing to ▪ The scheme covers short term advances
individual borrowers against the to individuals against the collateral
security of CNX 500 Scrips, which security of demat units of open-ended
qualifies the parameters set for schemes of SBI Funds Management
acceptance of shares as security. Ltd. (SBIFM), a subsidiary of SBI.
▪ It is a competitive product designed ▪ Loans against the units of Tax Savings
for people who need urgent cash but Funds should be given only after the lock
don’t want to sell or liquidate their in period of 3 years has expired.
holding of shares.

Purpose ▪ For meeting contingencies and needs ▪
of personal nature and for subscribing
to rights or new issue of shares
against security of existing shares.
Loan may be granted to individuals to
meet contingencies and personal needs
but not for subscribing to or boosting up
the sales of another scheme of mutual
funds, for the purchase of shares /
debentures / bonds or speculative
purposes.

Eligibility ▪ Existing individual customers with ▪ Individual(s) over 18 years of age except
KYC compliant accounts, good past NRIs.
relationship, having demat account
with our SBI CAP Securities Ltd
(SSL).
▪ Loan will only be sanctioned to
individuals in his/her individual name
i.e., loan will not be sanctioned jointly.

Loan ▪ Minimum: Rs.50000/- ▪ Minimum: Rs.25000/-

Amount
▪ Maximum: For any personal purpose
maximum loan is Rs.20.00 lakhs.
(For subscribing to IPOs maximum
loan is Rs.10.00 lakhs)
▪ Maximum:
- Equity/ Hybrid/ ETF MF
(Demat) Rs 20,00,000/-
- Debt/ FMP MF: Rs 5,00,00,000/-

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Margin ▪ 50% of the prevailing Stock Exchange ▪ Equity/ Hybrid/ ETF MF: 50%
market prices of the shares as ▪ Debt/ FMP MF: 15%
calculated based on the prevailing
market price as on the date and time
of loan sanction.

Repayment ▪ In 30 EMIs starting from next month in ▪ Overdraft (Auto Renewal / Review every
Demand Loan and in case of OD loan year).
tenor is 30 months.
Security ▪ Pledge of Demat Shares ▪ Lien on units of MF.

Special ▪ Loan to be processed & sanctioned By Authorized Branches only.

Feature by Nodal Branch (Specialized
Securities Finance Branch Worli) List of approved Mutual Funds are detailed
only; fully online procedure in Circular No.: R&DB/PBU/CD&e-COM-
PL/7/2022 – 23 dt 12.05.2022.

Loan against Securities Master Circular No.: R&DB/PBU/CD&e-COM-PL/1/2021 – 22 dt 09.12.2021

Loans Against NSCs / KVP Loans Against Life Insurance Policy

including Insurance Policies of SBILIFE
General ▪ All branches can grant loans against ▪ All branches can grant loans to the
the security of the National Savings customers maintaining satisfactorily
Certificates (NSCs) of VIII Issue and conducted accounts, against the
Kisan Vikas Patras (KVPs). security of the life insurance policies
issued by:
- Life Insurance Corporation of India
- Department of Post Offices
- SBI Life Insurance Company Ltd.
- HDFC Standrad Life
- ICICI Prudential Life insurance

Purpose ▪ To meet expenses of personal nature. ▪ To meet expenses of personal nature.

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Eligibility ▪ Customers maintaining satisfactorily ▪ Loans to the customers, as advised

conducted accounts. above can be sanctioned provided the
following conditions are fulfilled:
▪ The age of the insured should have been
admitted by the authority issuing the
policy.
▪ The policy has not been issued under
the Married Women’s Property Act,
1874.
▪ The policy stands in the name of the
borrower only.
▪ The policy is in force and the insurance
premium has been paid upto date.

Loan ▪ Minimum: NA The amount of advance should not exceed

Amount ▪ Maximum: NA 85% (depends on the loan tenure
mentioned above) of the present surrender
value of the policy, which should be
ascertained from the respective Insurance
Company and recorded in the
miscellaneous security register. [Surrender
Value is the amount payable by the
insurance company on premature payment
of the policy]
Margin ▪ Public: 40% of face value plus Tenor & Margin
accrued interest of NSC VIII ▪ Upto 12 months. 15%
issue/KVPs. ▪ Upto 24 months. 25%
▪ Staff / Bank’s pensioners: 15% of ▪ Upto 36 months. 30%
face value plus accrued interest of
NSC VIII issue/KVPs.
(The margin is lower as a special case
on condition that interest should be
serviced by the staff promptly and
regularly.
Repayment ▪ A suitable repayment schedule is to ▪ Loan to be repaid within 3 years.
be fixed.
Security ▪ Pledge on NSC / KVP. ▪ Assignment of Insurance Policy

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Special ▪ Demand Loan / Overdraft with auto ▪ Advance against whole life policies
Feature renewal every year. should be discouraged.
▪ Third party loans against NSCs and
KVPs may also be considered on ▪ Demand Loan / Overdraft with auto
merits of each case. renewal every year.

Loans Against Bank’s Time Deposit Advance Against RBI Relief Fund
General ▪ To meet depositors’ liquidity needs, ▪ The GoI has allowed for pledge or
branches can grant loans against hypothecation, or lien of the bonds
these deposits. issued under the following schemes as
collateral:
▪ 7% Savings Bonds 2002
▪ 6.5% Savings Bonds 2003
▪ 8% Savings (Taxable) Bonds 2003
Purpose ▪ To meet expenses of personal ▪ These may be granted to individuals to
nature. meet personal / business needs and
contingencies.
Eligibility ▪ Customers maintaining Term ▪ Individuals over 21 years of age with an
Deposits (including NRE/NRO /FCNB assured income, including NRI subject
deposits) to compliance with exchange control
regulations, if any.
▪ Special Term Deposits (including
NRE/NRO/FCNB deposits),
Recurring Deposits (Accounts with
balance of Rs.100/- & above only
eligible including NRE/NRO Deposits)

▪ No loan will be granted against

RFC deposit.

Loan ▪ Minimum: NA ▪ Minimum: NA

Amount ▪ Maximum: NA ▪ Maximum: NA

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Margin ▪ 5% Margin in case the residual tenure ▪ Public: 40%

of Time Deposit is up to 36 months as
on the date of availing of loan. ▪ Staff / Bank’s Pensioners: 35% on bonds
less than 2 years old and 20% on Bonds
▪ 10% Margin in case the residual which are 2 years old or more.
tenure of Time Deposit is more than
36 months and up to 60 months as on ▪ Margin can be reduced to 15% and a
the date of availing of loan. term loan account opened if loan is
repaid in monthly installments through
▪ 15% Margin in case the residual check-off.
tenure of Time Deposit is more than
60 months as on the date of availing
of loan.

Repayment ▪ Till residual maturity of deposit. ▪ Till maturity of RBI Relief Bond.

Security ▪ Lien on Deposit. ▪ The securities must be endorsed /

Special ▪ Loans can also be granted to Third ▪
Feature Parties (individuals) against the
deposits, which are not held in their
names. (However, some stipulations
vide circular No- NBG/PBU/PL-
TDRLOANS/29/2018-19 dated
16.08.2018 is levied. 22.01.2021)
transferred by the beneficiary to the
Bank. Wherever an endorsement is
required the same should be prima facie
in order in the cage meant for the
purpose
The collateral facility is available only for
the loans extended to the holders of
the bonds and as such the facility is not
available in respect of the loans
extended to third parties.

▪ All Loans against bank’s time deposit

including to Staffs should be
processed through LOS.
Interest ▪ Presently spread in RoI is 1% over
contractual rate of interest on TD for
loan against Bank’s Time Deposit.
▪ A concession of 0.25% is available

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through INB/ YONO channel.

Others ▪ Only one Demand Loan will be
sanctioned against one Time Deposit.

▪ The DL will get liquidated at the time

of maturity of Time Deposit and
remaining amount of deposit, if any,
will be renewed for the same
contractual tenor of Time Deposit or
as per customer mandate.

▪ OD Facility to be given against

multiple Time Deposits.

▪ Interest on OD will be charged

@1.00% above the highest rate of
interest being earned amongst all
TDRs/STDRs against which the OD is
granted.

▪ Maturity proceeds of Time Deposit will

be credited to OD account and DP will
be reduced to the extent of collateral
value of matured FD and remaining
amount, if any, will be renewed for the
same contractual tenor of Time
Deposit or as per customer mandate
(System driven functionality is being
developed.

As a rule, no advance should be granted

against the security of Term Deposit
Receipts issued by other banks.

Loan is not allowed against SBI Tax

Savings Scheme -2006 during the lock
in period of 5 years.

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No Loan / Advance shall be made

against Term Deposits in the name of
Govt. Officials/Departments issued at
the request of Contractors/Traders.

Facility ▪ DL/OD

Loans Against SGBs Loans Against SBI Dual Online Advance

(Sovereign Gold Bond) Advantage Fund (DAF of Against TDR / STDR
SBIMF)
General ▪ Loan will be granted ▪ In order to garner ▪ The RINB Customers
against “SOVEREIGN substantial business in having transaction
GOLD BONDS” issued Loan against Securities rights through which
by Reserve Bank on portfolio & to market new they can create
behalf of Government of series of SBI DAF Overdraft (OD a/c)
India. aggressively, scheme of against their
‘Loan against SBI DAF’ TDR/STDR/ eTDR/
has been launched eSTDR (Fixed
Deposit) A/c.
▪ For each and every
Fixed Deposit a
separate OD account
is required to be
opened by the
customers.
Purpose ▪ Any personal purpose ▪ Any personal purpose ▪ Any personal purpose
other than speculative other than speculative other than speculative
purposes. purposes. purposes.
Eligibility ▪ All individual or joint ▪ DAF investors above 18 ▪ Available to customers
investors under years of age subject to having Fixed Deposits
Sovereign Gold Bond following conditions: in single name only.
Scheme holding the ▪ The facility of online
SGBs. ▪ i) Single/Joint holder(s) of OD is not available
Physical form: Must be SBI DAF against NRE/NRO/
issued through our Bank. FCNR(B) Fixed
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Demat Form: The ▪ ii) The Investor(s) should deposits, MODs & Tax
customer(s) must have have an SB account of Savings Fixed
demat account with SSL. SBI. Deposits.

▪ In case of joint ▪ iii) The SB account and

applicants, the Demat DAF should have
account and SB account identical name and PAN
should have identical number.
name.

▪ The loan applicant(s)

should be properly
introduced and should
have fully KYC
Compliant A/c before the
loan is sanctioned.

▪ The loan applicant(s)

must have PAN.

▪ Individuals who are 21

years of age with steady
income including Bank’s
employees and
pensioners. Submission
of proof of income by
borrower will not be
necessary.

▪ Trusts/HUFs/Companies
/ Partnership Firms/
Proprietary concerns
holding Sovereign Gold
Bond certificates are not
eligible for grant of loan
under the scheme.

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▪ No LOAN AGAINST
SOVEREIGN GOLD
BONDS (SGB) will be
sanctioned to the third
parties against the
collateral security of
SGBs.

▪ In case the SGBs are

held by natural/legal
guardian on behalf of a
minor, loans can be
availed of by the
guardian only for the
benefit of the minor.
Loan ▪ Minimum: Rs. 20,000/- ▪ Minimum: Rs.25000/- ▪ Minimum: - Rs.
Amount ▪ Maximum: 25000/-
▪ Maximum: Rs.20 lakhs ▪ DAF held in Demat form: ▪ Maximum Rs. 5.00
per individual. Rs 20 Lakhs Crores
▪ DAF held in Physical
▪ While granting advance form: Rs 10 Lakhs.
the operating units shall
ensure that maximum (Maximum limit is
Quantity of 500 gms per inclusive of all loans
person per fiscal doesn’t borrowed by the
exceed. applicant/borrower
against Shares &
Securities held by him
Processing ▪ 0.50% of the Loan ▪ 0.75% of the Loan ▪ NA
Fees amount + applicable Amount + applicable Tax
GST or Rs 500 +
applicable GST,
whichever is higher.

Margin ▪ 35% of Market Value ▪ 50% Margin is linked to ▪ The Limit of overdraft
published by PMD, the NAV or Market Value, against STDR/eSTDR
PBBU whichever is less. will be by default 90%

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of the face value of

STDR/eSTDR.

▪ The Limit of overdraft

against TDR/eTDR will
be by default 75% of
the face value of
TDR/eTDR by default.

Repayment ▪ OD- 36 M, Interest to be ▪ Remaining maturity ▪ Minimum residual

serviced monthly. period of the DAF. period of TDR/ STDR/
(Principal to be repaid on eTDR/ eSTDR should
or before the end of the ▪ Interest to be serviced be 6 months.
term.) monthly and Principal to
be serviced on or before ▪ STDR/eSTDR: 5 years
▪ DL-12month (Bullet- the end of the loan or remaining maturity
Repayment) Interest & tenure. period of Fixed
Principal to be repaid on Deposit, whichever is
or before the end of the lower.
term.
▪ TDR/eTDR: 3 years or
remaining maturity
period of Fixed
Deposit, whichever is
lower.
Security ▪ Lien on SGB ▪ Lien on units of DAF ▪ Pledge of Fixed
(Both in Demat & Deposit.
Physical forms)
Special ▪ The SGBs is proposed to ▪ Cheque book, Debit-cum- ▪ The closure of OD
Feature be valued based on the ATM card, INB facility can account on maturity or
Market Value of 24 Carat be extended. Loan end of term of TDR/
purity (995 gms.) gold account shall be opened STDR/eTDR / eSTDR
published by the under the same CIF will be done by the
Precious Metals Dept., under which the primary Home Branch.
PBBU. SB account of the
customer has been ▪ Before maturity of
opened deposit, Closure of

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account will be done

on request by the
Home Branch
Facility ▪ Overdraft or Demand ▪ OD ▪ OD account opened
Loan by the customers
through RINB.

Overdraft in Salary Package Accounts

▪ The OD facility will also be available to pre-selected Gold and above Variant Salary Package
Account customers on digital Channels i.e., YONO and Internet Banking

▪ The OD facility will not be available to Silver Variant Salary Package Account through any channel.

▪ OD Facility will be extended through YONO application, in addition to Branch and Internet Banking.

▪ CIC score 650 and above, (CIBIL, Version-2), mandatory PAN/ Aadhaar at CIF level, mandatory
employer code linkage in CSP category, standard loan accounts at CIF level.

▪ Pre-selection criteria will also apply for Branch channel, as applicable to Internet Banking and
YONO.

▪ Account should be opened with a Salary Package (SP) product code. (For e.g., CGSP, CSP, DSP,
ICGSP, PMSP, PSP, RSP, SGSP) The product code of CSP Lite and Contractual Employees will
not be eligible for the OD facility.

▪ None of the existing loan accounts under the CIF should be SMA 1 or worse category at the time
of OD Sanction None of the loan account under same CIF had been NPA in last 12 months.

▪ At least one credit in each month should be greater or equal to the min. threshold as per his salary
package eligibility (Gold- Rs25,000, Diamond- Rs.50,000 and Platinum-Rs.1,00,000) for last 6
months. Credit transactions like SB/ STDR/ TDR/ RD interest, TDR/ STDR/ RD maturity proceeds,
cash deposit will be ignored.

▪ Overdraft will be limited to 2 month’s Net Salary.

▪ Overdraft limit will be restricted to maximum limit under Gold, Diamond and Platinum variant as
follows: Gold Rs. 75000/-, Diamond Rs. 150000/-, Platinum Rs. 200000/-

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Asset Product- Agriculture Loan and Overview on Agri business
Agriculture Advance: General Instructions
Promotion of use of Kisan drones for crop assessment, digitisation of
land records, spraying of insecticides and nutrients.

Revision of syllabi of agricultural universities to meet the needs of

natural, zero-budget, and organic farming, modern-day agriculture.

Implementation of the Ken Betwa Linking project at an estimated cost

of Rs 44,605 crore. This is aimed at providing irrigation benefits to 9.0
lakh hectare farmland, drinking water supply to 62 lakh people, 103
HIGHLIGHTS OF
MW hydropower, and 27 MW solar power generation.
UNION BUDGET
2022-23
Promotion of Natural Farming in the five km wide corridors along the
River Ganga corridor.

Implementation of a rationalised and comprehensive scheme to

increase domestic production of oilseeds to reduce our dependence
on import of oilseeds.

2023 has been announced as the International Year of Millets.

The Rural Economy in India is mainly Agriculture based. Agriculture

is the mainstay of the Indian economy, as it constitutes the backbone
of rural India where more than 70% of Indians reside.

The share of agriculture and allied sectors in GVA of the country

Importance of declined from 18.2 per cent in 2014-15 to 17.8 per cent in 2019-20,
Agriculture an inevitable outcome of a development process in which the relative
performance of non-agricultural sectors becomes more dominant.
However, the importance of agriculture sector to Indian economy
cannot be negated as majority of the economic activities are
dependent on agricultural production.

The 73rd Constitutional Amendment Act, 1992 conferred

Constitutional status on the Panchayati Raj Institutions (PRIs). The
salient features of the Act are:
Panchayati Raj
• To provide 3-tier system of Panchayati Raj (Gram Panchayat,
Panchayat Samiti & Zilla Parishad) for all States having population of
over 20 lakhs.

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• To hold Panchayat elections regularly every 5 years.

• To provide reservation of seats for Scheduled Castes, Scheduled

Tribes in proportion to their population in a panchayat area.

• To appoint State Finance Commission to make recommendations

as regards the financial powers of the Panchayats.

• To constitute District Planning Committee to prepare draft

development plan for the district as a whole.

National Bank for Agriculture and Rural Development is

established by an act of parliament on 12thJuly 1982. It is setup as an
apex Development Bank with a mandate for facilitating credit flow for
NABARD promotion and development of Agriculture, Small-Scale Industries,
Cottage and Village Industries, handicrafts and other rural crafts

Rural Self Employment Training Institutes transform unemployed

rural youth in the district into confident self-employed entrepreneurs
RSETIs through need-based experiential learning programme followed by
systematic hand-holding support

District Rural Development Agency has traditionally been the

principal organ at the district level to oversee the implementation of
DRDA
different poverty alleviation programmes.

The Khadi and Village Industries Commission is a statutory body

established by an Act of Parliament (No. 61 of 1956). The KVIC is
charged with the planning, promotion, organisation and
KVIC implementation of programs for the development of Khadi and other
Village Industries in the rural areas in coordination with other
agencies engaged in rural development wherever necessary.

‘District Industries Centre’ (DIC)programme was started by the

central government in 1978 with the objective of providing a focal
DIC point for promoting small, tiny, cottage and village industries in a
particular area and to make available to them all necessary services
and facilities at one place.

Mahatma Gandhi National Rural Employment Guarantee Act -

MGNREGA
Panchayats have been legally declared as the “principal authorities
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for planning and implementation” of the scheme made under the Act,
Thus the NREG Act assigns a wide-ranging role to PRIs right from
registering of workers up to monitoring and social audit.

NRLM would ensure that at least one member from each identified
rural poor household, preferably a woman, is brought under the Self-
National Rural Help Group (SHG) network in a time bound manner. NRLM would
Livelihoods ensure adequate coverage of vulnerable sections of the society such
Missions that 50% of the beneficiaries are SC/STs, 15% are minorities and 3%
(NRLM) are persons with disability, while keeping in view the ultimate target
of 100% coverage of BPL families.

Shift focus from traditional loan products to Risks Mitigated products

like Multi-Purpose Gold Loan, Asset backed Agri Loan, Produce
Marketing Loan and New Tractor Loans with Tie-up arrangements.

2. Increase the portfolio mix with high yielding and risk mitigated
products with higher RAROC to improve the profitability.

3. Aim to extend more products to a single customer to bring down

SBI’s Focus and
the operational cost.
way forward in
Agriculture
4. Thrust on new Products: designed to improve the business viz.-
Lending
MUDRA Dairy Loan, MUDRA Loan for Allied Agriculture Activities,
Bamboo plantation loan etc.

5. Capture emerging business opportunities by leveraging new

business models like FPO financing, Contract farming, New
Corporate Tie-ups Value Chain Financing and Cluster financing in
Horticulture crops etc.

Soft recovery:

All accounts where mobile numbers are registered in CBS,

intimations should be sent through SMS to customers 10 days from
the due date.
Follow up of
.
Agriculture
First 3 SMSs: will be sent on alternate days followed by daily
Term Loans
thereafter till due date. The messages should be sent in the regional
language based on the customer profile.

Tele calling of the borrowers who have defaulted the installments

and tracking the repayments at regular intervals should be ensured.
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Notice: If the payments are not made on due date, then the notice to
be served to the borrower in the first week of default itself .2nd notice
is served to the borrower in the 3rd week if required.

Personal contact: Borrower should be contacted personally if the

loan account remains irregular for 30 days.

Hard recovery measures:

Leverage recovery agents: The cases of default of 2ndinstallment
should be handed over to the recovery agents for further course of
action, with the permission of the Controlling Authority.

Legal/compromise: Recovery proceedings through legal route may

be initiated after turning the account NPA

Scheme For One Time Settlement of Bank’s Dues Held With R&DB & SARG - Rinn
Samadhan 2022-23 Scheme (Circular No.: CCO/CPPD-ADV/77/2022 – 23 dt
14.10.2022)
1. Scheme is applicable for borrowers with outstanding upto Rs.20.00 lakhs
2. The Scheme will be non-discretionary and non-discriminatory in nature
3. The Scheme will be effective till 31.03.2023
4. Concessions available :-
1. Waiver of notional interest from date of NPA, in respect of all eligible
accounts.
2. Legal and any other out of pocket expenses shall be waived.
3. The recoveries effected if any, after receipt of claims/subsidy from
CGTMSE/ CGSSI/ CGFMU/GECL & any other Agency is to be added
back to the outstanding.
4. Haircut will be given as under for AGRI segment:
Category Waiver on Secured portion Waiver on Unsecured
of Outstanding (i.e. portion of Outstanding (i.e.
Outstanding equivalent to Outstanding in excess of
the value of primary and value of primary and
collateral security) collateral security)
Unsecured Sub-Standard NIL 15%
Account
D1 & D2 Accounts 25% 60%
D3, Loss, AUC & AUC 50% 70%
Dropped Accounts
Modified New Tractor Loan Scheme
Target group Existing Farmers, New Farmers, & Good borrowers of other banks
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Borrower should possess a minimum land holding of 2 Acre.

Only
Eligibility Applicants from the list of relatives as specified by bank may
become as co-applicant.

To meet the cost of purchase of Tractor and accessories and

Purpose: implements (including insurance + registration charges)

25% of tractor and accessories (Including insurance& registration)

Margin
• Loan limit upto Rs.1,60,000/-

• Primary- Hypothecation of the Tractor, accessories and

implements purchased out of Bank finance.

• Collateral –NIL

• Loan limit above Rs.1,60,000/-

Security • Primary- Hypothecation of the Tractor, accessories and

implements purchased out of Bank finance.

• Collateral-Registered/equitable mortgage of land belonging to the

applicant(s) for value not less than 100% of the loan amount or
third-Party guarantee, good for the amount involved or any other
approved liquid security

• Comprehensive with full amount of Tractor, accessories and

Insurance implements.

• 0.50% of the loan amount

Upfront fee
• Credit Score of 71 & above- ‘Good’ Loans.
• Credit Score of 41 and above but up to 70 - may be considered
after credit enhancements or to be referred to the next higher
Credit scoring
authority.
model:
• Credit Score of 40 and below - should not be considered for
sanction.

Assessment of • Minimum DSCR should be 1.5:1.

Loan Limit
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• BMs/CPCs are permitted to waive this stipulation, provided liquid

securities are offered to the extent of 50% of the loan amount.

Repayment • Maximum repayment in 5 years.

• A fee of 0.50% of the loan amount will be paid on the dealers.
Incentive to
• A fee of 0.25% of the loan amount (maximum Rs. 3,000) will be
tractor dealers
paid to DSE) for the loan applications sourced by them at all
/dealer sales
Centres.
executive
• Penal interest during the irregularity period: 1.00%p.a.
• Failure to get the vehicle registered within one month from the date
Penal Interest of delivery attracts penal interest rate of 2% for the period of default
of the borrower.

Inspections • Inspection is stipulated at half yearly intervals.

TAT • 3 days

TATKAL (Mortgage Free) Tractor Loan

• High Net worth farmers who can purchase tractor with cash (who
secures 70 & above under Tractor Credit Scoring Model)
• Existing farmers
Target group
• New farmers
• Good borrowers banking with other banks.

• Farmer should possess a minimum landholding of 2.00 acres.

Eligibility
• To meet the cost of purchase of Tractor (including insurance&
Purpose registration charges)

• 100% financing, the total cost of the tractor including insurance and
registration charges.
Quantum of loan
• Accessories not to be included.

• Minimum 25% of the cost of tractor including insurance and

registration
charges.
Margin • The margin has to be deposited in the form of TDR in the branch
with Zero rate of interest and lien has to be marked on TDR for the
entire tenure of tractor loan.

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• Primary: Hypothecation of the Tractor, accessories and

implements purchased out of Bank finance.
Security
• Collateral: Lien on TDR accepted as a Margin Money.

• Comprehensively insured for full amount of Tractor, accessories

Insurance and implements.

• 0.50 % of the loan amount.

Upfront fee
Credit scoring • Credit Score of 70 & above are considered for sanction
model:
Assessment of
Loan Limit • Minimum DSCR should be 1.5:1

• There will two types of repayment period i.e.48 months when the
instalments are calculated based on net loan (Loan–Margin) kept
in TDR) and
• 60 months when the instalments are calculated based on total loan
Repayment
without netting.
• Post-dated cheques must be obtained from the borrower for the
EMIs/Monthly Interest/Instalments.

• Dealer whose tractor referrals translated to sanctions at branches

up to 10 tractors per month: 1% of loan limit (Max 5,000/-)

• Dealer whose tractor referrals translated to sanctions at branches

above 10 tractors per month: 1.4% of loan limit (Max.7000/-) from
11th tractor onwards.
Incentive to
• 75% of the incentive amount will be paid by the branches after the
tractor dealers
lien is noted in favour of Bank in RC book of tractor. Remaining,
/dealer sales
25% will be paid after one year, subject to the account continue to
executive
be a Standard Asset.

• For DSEs: A fee of 0.5% (upto10 tractors) /0.7% (above10 tractors)

of the loan amount (maximum Rs.2,000/- /3,500/-) will be paid as
an incentive to Dealer Sales Executive (DSEs) for the loan
applications sourced by them at all Centres.

• Penal interest during the irregularity period:1.00%p.a Failure

Penal Interest
to get the vehicle registered within one month from the date of
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delivery attracts penal interest rate of 2% for the period of default of

the borrower.

• Inspection is stipulated at Quarterly intervals.

Inspections
TAT • 2 days
Tractor Loan under Tie-up
• Existing farmers/New farmers/Good borrowers banking with
Target group
other banks
• Farmer should possess a minimum land holding of 2.00 acres.
• All farmers-individuals/Joint borrowers who are owner
cultivators.
• Only applicants from the list of relatives as specified by the
Eligibility
bank may become as co-applicants.
• Cap on income from custom hiring should not exceed 50%
of the repayment obligations while calculating eligibility.

• To meet the cost of purchase of Tractor (including insurance +

Purpose
registration charges)
• Total cost of the tractor Less Margin: 20%
• Bank Loan: 80%
• Min. loan: Rs.1.00 lakh
Quantum of loan
• Max. loan: Rs.10.00 lakh
• Cost of accessories not to be included

• Margin: 20% of cost of tractor (Invoice + Insurance+

Margin
Registration)
• Primary: Hypothecation of the tractor purchased out of Bank’s
finance.
Security
• Collateral: NIL

• Comprehensive insurance for the full cost of tractor till the loan is
Insurance repaid in full should be obtained.

Upfront fee • 0.50% of the loan

Repayment • Repayment period is 5 years
Incentive to
tractor dealers
• No Payment
/dealer sales
executive

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• Loan is sanctioned under Corporate Tie-up with Tractor

Manufacturer’s FLDG (First Loss Default Guarantee) of minimum 2%
Corporate Tie-up
from the Corporate.

Inspections • Quarterly
Others • All other features like other tractor Loan
Power Tillers
• Farmers or a group of not more than three farmers
• owning one acre of perennially irrigated land (contiguous /nearby)
or corresponding acreage of semi irrigated /dry land prescribed in
Eligibility the Land Ceiling Act are eligible for availing power tiller loans under
the scheme.
• Farmers owning lesser acreage than that as prescribed above,
also become eligible provided DSCR workout to 1.75 and above
To meet the cost of purchase of New Power Tiller only with
Purpose
accessories.
• Up to Rs.50,000/-: Nil,
Margin • Above Rs,50,000/-: 10%

Insurance Comprehensive insurance of power tiller along with accessories.

Assessment of
Loan Limit Minimum DSCR should be 1.75 :1

• The total cost of the Power Tiller minus stipulated margin plus cost
of necessary accessories, if any. No Minimum and Maximum in
Project cost.
Quantum of loan • Approved Model to be purchased.

Minimum: Rs. 5,000 Maximum: Rs. 5,00,000

Processing • 0.50% of the loan + GST

Charge
• Primary: Hypothecation of power tiller and accessories
Security
• Collateral: No collateral up to Rs.10 lakhs

Repayable in five years in 10 half yearly instalments including grace/

Repayment gestation period.

Inspection is stipulated at quarterly intervals. Monitoring is Similar to

Inspections
Tractor loans.

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• 7 days from the date of submission of all the required

TAT
Documents.
Combine Harvester
Applications received directly from dealers of Combine Harvester
Product-code OEM (Original equipment manufacturer), under Tie up with Bank will
6430-4188 also be processed and sanctioned under this scheme under sub-
product code.

1.Any individual or group of individuals i.e., JLGs / SHGs, etc. are

eligible for finance who have sufficient and regular income either from
own farm activity or custom hiring incomes from the Combine
Harvester proposed to be purchased and its accessories.In respect
of financing to SHG/JLG, Branch to ensure that vehicle is registered
in the name of the ‘Authorized Representative’ of the SHG / JLG
elected / appointed through a resolution. Branch must obtain a copy
of minutes / resolution of the relevant meeting of the SHG/JLG in
which, its members have agreed for such election / appointment.

2. Only applicants from the list of relatives as specified by the bank

may apply as co-applicant.

3. Minimum acreage: Min acreage of 3 acres of irrigated land for

individual borrower and 5 acres of irrigated land for joint borrowers.
Eligibility
(Dry land 15 acres).

4. No history or no default / overdue appearing in CIC/CIBIL report.

Borrowers with no CIBIL history must be subjected to enhanced due
diligence.

5. Applications received directly from dealers of Combine Harvester

OEM (Original equipment manufacturer), under Tie up with Bank will
also be processed and sanctioned under this scheme under sub-
product code.
Any Tie-Up executed by Bank with Combine Harvester OEM will be
communicated separately through e-circular. Loan Proposals other
than Tie up will continue to be processed under Combine Harvester
scheme without Tie-Up. All Product features applicable to without Tie-
Up will be strictly followed by Branches

To meet the cost of purchase of New Combine Harvester and

Purpose
necessary accessories.
Loan amount Min : 5,00,000 Max: 35,00,000
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For Both Combine Harvester Scheme under Tie-Up and without Tie-
up 20% of Cost of Combine Harvester (excluding insurance and
registration charges).
Margin (As per the dealer net price invoice obtained from reputed dealer of
Combine Harvester of the approved Combine Harvester
manufacturers for the approved models).
In case of proposals where applicant score between 40 and 59
under Risk Scoring Model, if proposal is sanctioned under ‘credit
enhancement’, margin will be 30%.
Comprehensive insurance of combine harvester purchased out of
Insurance
Bank finance.
Assessment of
Minimum DSCR should be 1.5:1.
Loan Limit
Processing 1.40% of loan amount + GST
Charge
6 month within overall loan tenure. 1 st instalment will become due
Moratorium
after 6 month from disbursement.

Primary: Hypothecation of Combine Harvester and accessories

Collateral / Third Party Guarantee

For Loan Limit, Up to Rs 10.00 lakhs: No collateral or TPG is
required.

For loan limit above Rs 10.00 lakhs:

Gold Ornaments or Any other approved liquid security. Value of
Security these securities after netting Bank’s prescribed margin should be
equal to sanctioned loan amount.
or Equitable / Registered mortgage of land covering 100% of the
sanctioned loan amount.
or In respect of proposals with score of 71 or above arrived through
credit scoring model, Third Party Guarantee (acceptable to the
Bank) may be accepted in place of collateral securities.
In case of proposals where applicant score between 40 and 59
under Risk Scoring Model, if proposal is sanctioned under ‘credit
enhancement’, collateral value should be minimum 150% of loan
amount.
Repayable in Maximum 6 years. 12 half-yearly Principally Equated
Repayment Distributed Instalment with Interest. Interest applicable on half yearly
interval.
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Half Yearly Principal Equated Distributed with Interest at Half Yearly

Instalments. Frequency of Interest application and Interest
Compounding is Half yearly. Interest and principal will be paid at
Half yearly interval.
Inspections Inspection is stipulated at Quarterly intervals.
Documentation
/Scoring Model/
Similar to tractor loans
Monitoring /
NPA norms
Financing Cold Storage: Capital Investment Subsidy Scheme for Construction /
Expansion /Modernization of Cold Storage and Storage for Horticulture Products
The assistance will be given as subsidy @ 35% of the capital cost of
Pattern of project in general areas and 50% in case of NE, Hilly & Scheduled
Assistance Areas, for a storage capacity above 5000 MT upto 10000.MT
(Subsidy) Maximum permissible subsidy shall be subject to original invoices
and in no case more than Rs. 7.50 crore, whichever is lower.
For calculation of capacity, 3.4 cubic meters (cum.) (120 cubic feet
Calculation of
(cft.) of chamber volume shall be considered equivalent to 1 MT
Capacity for
storage capacity.
subsidy
A natural person, a group of individuals or
a legal person (Partnership Firm, a Trust, Cooperative Society, a
Society registered under Registration of Society Act, a Company,
Eligible
Self-Help Group, Farmer Producer Organisation, Cooperative
Beneficiaries
Marketing federation, Agriculture Produce Marketing Committee,
Marketing Board, municipal Corporation, Agro Industries
Corporation) may apply for assistance.
The project cost will of course depend upon the capacity and
technology used for the cold storage(s) and has to be arrived at on
Project Cost
the basis of actual / estimates of architects / invoice prices of
machineries etc.
Minimum 25% of the project cost. The purchase value of land only (if
purchased for the project) subject to a maximum of 10% of the project
Margin
cost can be reckoned towards margin contribution of the borrower(s)
/ enterprise.
Term loan from bank should be at least 15% more than the admissible
Loan amount
rate of subsidy.
General
To ensure, compliance of notified standards, all projects will be
conditions for
subjected to technical scrutiny by NHB empanelled technical
Cold Storage
appraisal agency.
projects

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Maximum period of 8 years inclusive of grace period maximum of 2

Repayment
years; instalments are fixed depending on the cash flow.
Joint Inspection by representative of NHB, State Directorate of
Inspection:
Horticulture and representative of Bank in presence of beneficiary.
The subsidy released by NHB to Bank shall be kept in the separate
account -Subsidy Reserve Fund. The adjustment of subsidy in term
Subsidy loan account shall be made only as back ended subsidy (towards last
administration instalments) which should not be prior to 36 months period from the
date of release of Term Loan. Interest should not be charged to the
subsidy portion from the date subsidy is received by the Bank.
As per ATL.
Security
Financing Polyhouse
Purpose • Construction of Polyhouse / net house /greenhouse cultivation.
• Individuals / JLGs/SHGs/entities having own land / leased (15
Eligibility
years) with assured irrigation facilities and marketing arrangements.
Equitable Mortgage of SARFAESI complaint immovable property for
100% of the loan amount pertaining to individual /proprietor /partners
Collateral
/their near relatives.
security
In addition, the land on which the activity will be undertaken must be
mortgaged.
Negotiated repayment in 72 months including gestation period of 3-
Repayment
12 months.
Term loan to meet the cost of construction of house and purchase of
machinery/equipment needed. Project cost will be based on the rates
Purpose
prescribed by NHB/ other approved agency from time to time.
Minimum size of the unit would be 1000 sq. mtr.
ATL: 15% of the project cost
Margin
ACC: As per Scale of Finance for crops to be grown
Primary: Hypothecation of crops and poly house, machinery
Security For /equipment & other assets created out of Bank’s finance.
Loans up to
Rs.1.60 lakhs Collateral: NIL.

Primary: Hypothecation of crops and poly house, all machinery

/equipment & other assets created out of Bank’s finance.
Security For
Collateral: Mortgage of the land on which the activity will be
Loans above
undertaken. And Equitable Mortgage of SARFAESI complaint
Rs.1.60 lakhs
immovable property within a radius of 25 km from the Branch
(Controlling Authority may decide going beyond 25 km on case-to-
case basis)

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OR

Physical gold/ NSC/KVP/LIC Policy /FD belonging to the applicant, or

the guarantor can be accepted.
Assessment of
loan Minimum DSCR should be 1.75
limit
Subsidy by National Horticulture Mission / State Government provide
capital subsidy for establishing the poly house.
Percentage of subsidy varies from State to State. For Fan & Pad and
Naturally ventilated system Green House (Tubular structure),
Capital subsidy assistance is provided @ 50% of cost for a maximum area of 4000
sq. mtrs. per beneficiary.
For wooden and bamboo structure green house, assistance is
provided @50% of cost limited to 20 units per beneficiary and each
unit not exceeding 200 sq. mtr.
Horticulture and Plantation Scoring Model for loans below Rs.50
lakhs.
Cut off:1.Score above 60% - Clear sanction

Scoring Model If score is 40% to 60% - Sanction may be considered.

2. After credit enhancement / 3. Application to be reported to next
higher authority
4. score less than 40% - Decline

Processing
1.40% of the loan limit + GST
charges
Insurance Insurance of assets purchased /created out of Bank’s finance.
Inspection Inspection is stipulated at quarterly intervals.
Turn Around
7 days from the date of submission of all the required documents.
Time
Financing Solar Pump sets(Photovoltaic Solar Pumping Sets)
Purpose To purchase solar photovoltaic water pumping system.
Individuals, group of individuals, SHGs, JLGs, NGOs, Farmer’s Clubs
and Farmers Produces Organizations (The above farmers either
Eligibility apply under Corporate Tie-up approved by the Bank or they may be
progressive farmers cultivating fruit & vegetable crops/ undertaking
other Agricultural allied activities for the last three years.)
Margin: 20%
Total Financial
Cost + Insurance
Outlay

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Pertaining to irrigation scheme: Credit Score of 50& above are

Scoring Model
considered for sanction.
Assessment of
loan Minimum DSCR should be1.5:1.
Loan
a) Primary:
Security For Hypothecation of Solar Photovoltaic Pumping system along
loans upto accessories.
Rs.160,000/- Hypothecation of crops grown/to be grown
Collateral- Nil

Primary:
Hypothecation of Solar Photovoltaic Pumping system along with
accessories/attachments • Hypothecation of crops grown/to be grown

Security Collateral: Mortgage of land/building as applicable to Agricultural

For loans above Term Loans
Rs.160,000/-
OR

Physical gold/ NSC/KVP/LIC Policy /FD belonging to the applicant, or

the guarantor can be accepted.

Insurance Comprehensive off all the SPV system and equipment.

Processing Fee As applicable to Agri Term Loans.
Maximum 120 Months including moratorium.
Repayment
M/Q/HY based on the source of cash flows from the crops.
Inspections stipulated at Half Yearly intervals.
Inspections:

Financing Pump set

Individual farmers, companies /partnership firms /JLGs/SHGs of
farmers.
Minimum economic holding acreage: 1.25-acre owned land.
Eligibility
However, loans can be considered even if the benefitting area is
less than 1.25 acres provided the farmer is able to sell surplus water
availability of the project is ensured.
Purpose Purchase of irrigation pump set /oil engine along with accessories.
Margin 15% to 25% of the project cost
Assessment of
Minimum DSCR should be 1.75 :1
loan limit

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Processing
1.40% of the loan + GST
charges
Security Up to
Primary: Hypothecation of movable assets created
Rs.1,60,000
Collateral: NIL
Primary: Hypothecation of movable assets created
Above
Collateral: Mortgage / charge on land
Rs.1,60,000/-
Repayable in 9 years or 18 half yearly installments including
Repayment gestation
Period
Scoring Model For “Other Agri. Loans (Investment credit)” must be used.
Inspection Inspection is stipulated at quarterly intervals.
Turn Around
7 days from the date of submission of all the required papers.
Time (TAT)
Financing Organic Farming
It is a method of farming system which primarily aimed at cultivating
the land and raising crops in such a way, as to keep the soil alive and
in good health by use of organic wastes (crop, animal and farm waste,
What is Organic aquatic waste and other biological materials) along with beneficial
Farming microbes (Bio fertilizers) to release the nutrients to crops for
increased sustainable production in an ecofriendly pollution free
environment

Category One - Crops under rainfed farming system.

Category of Category Two - Mix of rainfed farming and partially irrigated lands
Farms for
Organic Category Three - Areas having moderate to heavy use of chemicals
Farming with irrigation facility.
Category Four - Horticulture, plantation etc. carried as business
activity.
In EU, Germany is the leading country in organic production,
Main markets
followed by Italy and France.
for Organic
In respect of worldwide organic food consumption, Denmark and
Farming
Austria lead the way.
Organic products are nutritious, have better taste, flavor, and aroma
Important points and are sold at fancy premium ranging from 15-30%.
related to Minimum 25 and maximum 500numbers of farmers are required
Organic from same geographic area to apply for organic certificate of their
Farming. product.
Sikkim is declared as first organic state of India.

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Agri Clinics & Agri Business Centers

• To provide expert advice and services to farmers on various
technologies, including soil health, cropping practices, plant
Agri. Clinics protection, crop insurance, post-harvest technology and clinical
services for animals, feed and fodder management, prices of various
crops in the market etc.
Commercial units of Agri. ventures established by trained Agriculture
professionals.
Agri. Business Such ventures may include maintenance and custom hiring of farm
Centers equipment, sale of inputs and other services in Agriculture and allied
areas, including post-harvest management and market linkages for
income generation and entrepreneurship development.

• Graduates in Agriculture and allied subjects from SAUs/ Central

Agricultural Universities/ Universities recognized by ICAR/ UGC.

• Diploma (with at least 50% marks)/Post Graduate Diploma

holders in Agriculture and allied subjects from State Agricultural
Eligibility
Universities, State Agriculture and Allied Departments and State
Department of Technical Education.

• Agriculture related courses at intermediate (i.e. plus two) level,

with at least 55% marks

• Ceiling of project cost for subsidy is Rs.20 lakh for an

individual project (Rs. 25 lakhs in case of extremely successful
individual projects) and to Rs.100 lakh for a group project
(established by a group comprising at least five trained persons
Project Cost
under the Scheme, out of which one could be from Management
Ceiling
background).
• However, the actual credit sanctioned by the banks for a
venture, established under the Scheme could be higher depending
on the financial viability and technical feasibility.
• In case of loans up to Rs. 5 lakhs, no margin money is
required.
Margin • Above 5 lakhs-10% value of the Total Financial outlay of the
project.

Time limit for • Maximum 6 months from the date of disbursement of the first
completion of instalment of loan, which may be extended by a further period of 6
the project months, if justifiable.
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a) Up to Rs. 5.00 lakh

Primary: Hypothecation of assets created
Collateral: NIL
Security:
b) Above Rs. 5.00 lakh
Primary: Hypothecation of assets created.
Collateral: Mortgage of land or Third-party guarantee with the
permission of controller.
Repayment: Between 5-10 years with grace period of maximum 2 years.
Training & MANAGE (National Institute for Agricultural Extension Management)
Selection in Hyderabad is responsible for providing training to eligible
Process: candidates, through its nodal institutes.
• “Composite subsidy” will be 44% of project cost for women,
SC/ST & all categories of candidates from NE and Hill
statesand36% of project cost for all others.
• The subsidy admissible under the scheme will be kept in the
“Subsidy Reserve Fund Account”.
• No interest will be charged on this by the bank.
Subsidy
• The subsidy in all such cases will be worked out on the basis of
the Fixed Capital and one Operating Cycle of the Working
Capital as a Composite Loan.
• The subsidy will be back - ended with minimum 3 years lock-in
period.

Land Purchase Scheme

• Small & Marginal Farmers, Tenants Cultivators,
Sharecroppers and Landless Agricultural Labour.
• The borrowers should have a record of prompt repayment of
Eligibility
the loan for at least two years.
• Good borrowers of other Banks may also be eligible provided
they liquidate their outstanding to other banks.
• Loan to be considered for Cost of land, Provision of irrigation
facilities & land development (shall not exceed 50% of the cost of
Purpose
land) purchase of farm equipment, Registration charges & stamp
duty.
Margin • Minimum margin of 15%
Assessment of
• Maximum Rs. 5 lakhs. (Excluding development charges)
loan limit
• To be secured by way of mortgage of land to be purchased
Security with bank’s finance

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• Max. 9-10 years beginning after the expiry of gestation period,

with half-yearly instalments.
Repayment
• Gestation period: 1-2 years: If it is to be developed.
• Gestation period: 6 Month-1year: Developed land.
Scheme for Debt Swapping for Borrowers
• To mitigate acute distress, farmers might be facing due to the
PURPOSE heavy burden of debt from non-institutional lenders.

• All existing farmer borrowers as well as other farmers in the

ELIGIBILITY
operational area of the branch.
• The scheme will be for farmers owning land – existing or
prospective.
ASSESSMENT • The quantum of loan granted shall be 100% if the debt is on
OF LOAN account of cultivation or Agri. activity or Rs.1,00,000/- whichever is
lower.
• Gross DSCR of 1.75 will be maintained.
SECURITY: • Collateral security by mortgage / charge on Agriculture
property shall be taken for this loan.
• Term loan will be repayable in yearly / half yearly instalments
REPAYMENT in 3 to 5 years.
• Instalments should coincide with the cash flow of the farmer.
Investment Credit in Agri Allied Activities
• India is the world’s largest producer and consumer of milk
Dairy
and has the world’s largest dairy herd.
Categories of
• Exotic/ crossbred cattle, indigenous cattle, and water buffalo.
Bovine Herd
• Village level dairy cooperative societies that collect milk with
quality-based payments to members.
• District Cooperative Milk Producers’ Unions (DCMPUs) that
“Anand Model” process, market, and provide technical support for the village-level
societies.
• State Cooperative Milk Marketing Federations that provide a
range of marketing, feed manufacture, and administrative functions.
• 3rdposition in global egg production and 5th position in
Poultry Sector
broilers.
The National
Egg
• NECC has a membership of more than 25,000 farmers, is the
Coordination
largest association of poultry farmers in the world.
Committee
(NECC)
Indian Fisheries • 2nd in Fisheries &2nd in Aquaculture.

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New Dairy Product under Tie-up

• Purchase of milch cattle by dairy farmers/ entrepreneurs to
PURPOSE
augment their income.
• Individual farmers who are members supplying milk to the
anchor Companies/societies for at least 2 years prior to the date of
loan application.
• Applicant should be less than 65 years of age.
• Applicants should own/lease a minimum:
ELIGIBILITY • No land stipulation for 2 animals
• 0.5 acre of land for 3-10 animals,
• 1.00 acre for 11-25 animals
• 1.5 acres for 26-50 animals.
• Only farmers who have a tie-up with the anchor company will
be eligible for loans under this product.
Margin: • NIL irrespective of the loan limit.
• Minimum: Finance for 1 milch cattle.
• The cost of animals shall be based on the unit cost prescribed
Quantum of by Technical Committee (prepared and circulated by Lead
Loan Bank/NABARD).
• Branches have the discretion to have an additional 10 %
upward /down-ward revision in the cost.
DISBURSEMEN • The loan amount shall be disbursed in stages so that regular
T flow of the income will be maintained throughout the year.
SECURITY:
• Primary- Hypothecation of dairy animals, dairy equipment and
For loans upto
other assets created out of Bank’s finance.
Rs.160,000/-
• Collateral- NIL
• Primary- Hypothecation of dairy animals, dairy equipment and
SECURITY: other assets created out of Bank’s finance.
For loans above • Collateral-Mortgage charge over land.
Rs.160,000/- OR
• Physical gold/ NSC/KVP/LIC Policy /FD belonging to the
applicant, or the guarantor can be accepted.
INSURANCE • Insurance of the Cattle.
• RFID Tags (basis injection) for purchased animals to be
Inspections: verified as part of post sanction follow up by the corporate
veterinarian.
• 7 days from the date of submission of all the required
TAT documents/papers.

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MUDRA Loans under Allied Activities ( Common Guidelines)

• a) Dairy /Poultry/Fisheries
Important • b) Goat /Sheep/ Piggery rearing
Activities • c) Bee Keeping
Covered • d) Agri Clinic and Agri Business Centers Others (promote
livelihood and income generation), etc.
• Individuals, sole prop, partnership firms, except corporate,
Eligibility bodies, institutions, SHG, JLG engaged in “Activities allied to
Agriculture described above.
Loan ceiling • Maximum Rs.10 lakhs
• Up to Rs. 50,000/- NIL,
Margin
• Rs. 50,000-Rs. 10.00 lakhs - 10%
Processing • Up to Rs. 50,000/- NIL
Charge • Rs. 50,000-Rs. 10.00 lakhs- 0.50 % of loan amount +GST
• Primary: Hypothecation of assets and other movable assets
created out of the Bank loan.
Security
• Collateral: No collateral security to be obtained for all loans up
to Rs.10 lakhs.
• Loan limit up to Rs.1.00 lakh: Running OD which is renewable
annually.
• The loan limit beyond Rs.1.00 lakh: 60 months including a
Repayment
moratorium period of 1 month as Drop Line Overdraft Limit.
• Term loan of 3-5 years including gestation period depending
upon the activity/ income generation.
Guarantee • The Credit Guarantee Fund for Micro Units (CGFMU) provides
Cover coverage of loans sanctioned under PMMY up to Rs.10.00 lakh on a
portfolio basis.
• Techno-economic viability to be appraised in every case.
Assessment of
• Economics of the project is to be worked out for arriving
Loan
minimum DSCR: 1.75:1
• New Scoring Models for Mudra Loans.
• Clear Sanction - Above 60%.
Credit Scoring • Sanction may be considered- for 40% – 60%.
Model • After credit enhancement
an. OR
• Application to be referred to next higher authority.
• Decline - Bad Loans Less than 40%
Inspection • Half yearly intervals.
• 7 days from the date of submission of all the required
TAT
documents/papers.

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• Comprehensive insurance for full value of the assets created

Insurance lo
out of Banks Finance.
MUDRA Dairy Loan Scheme
• Individuals, sole proprietorship/partnership firms except
Corporate Bodies, Institutions, SHGs, JLGs engaged in dairy
Eligibility
activities. (Sale proceeds of milk should be routed through the
accounts) Not to be defaulter in any other Bank/FI.
• To purchase milch animals, equipment and cattle feed,
Purpose construction of shed, payment of veterinary charges, insurance, milk
cans, bore well etc. required for carrying out dairy farming activity.
• The loan amount should be disbursed in stages so that regular
flow of the income be maintained throughout the year. E.g. for a loan
sanctioned for 4milch animals, branches may disburse two milch
Monitoring
animals’ cost first and two after 6 months.
• Post-disbursement: Creation of asset must be ensured RFID
Tags (basis injection).
• 7 days from the date of submission of all the required
TAT
documents/papers.
MUDRA Poultry Loan Scheme
• To purchase day old chicks, equipment, poultry feed,
Purpose medicines, construction of shed, bore well, payment of insurance,
etc., required for carrying out poultry (broiler /layer) farming activity.
• Poultry entrepreneurs who adopt scientific methods of poultry
farming and have forward & backward linkages through tie ups.
Eligibility • Individuals, sole prop, partnership firm except corporate
bodies, institutions, SHGs, JLGs engaged in poultry farming activities.
(Not to be defaulter in any other bank /FI.)
MUDRA Fishery Loan Scheme
• Fishery entrepreneurs who adopt scientific methods of fish
farming and have forward & backward linkages through tie ups.
Eligibility • Individuals, sole prop, partnership firm except corporate
bodies, institutions, SHGs, JLGs engaged in fish farming activities.
(Not to be defaulter in any other bank /FI.)
• To purchase fish seed, equipment, fish feed, refrigerator,
Purpose vehicle, construction of shed, insurance etc. required for carrying out
fish farming activity.
MUDRA Sheep Rearing Scheme
• Sheep entrepreneurs who adopt scientific methods of sheep
farming and have forward & backward linkages through tie ups.
Eligibility • Individuals, sole prop, partnership firm except corporate
bodies, institutions, SHGs, JLGs engaged in sheep farming activities.
(Not to be defaulter in any other bank /FI.)
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• To purchase Ewes (female sheep)/Rams (male

sheep),equipment, sheep feed, medicines, veterinary aid,
Purpose
construction of shed, bore well payment of insurance etc., required
for carrying out sheep farming activity.
MUDRA Pig Rearing Scheme
• Pig entrepreneurs who adopt scientific methods of pig farming
and have forward & backward linkages through tie ups.
Eligibility • Individuals, sole prop, partnership firm except corporate
bodies, institutions, SHGs, JLGs engaged in Pig farming activities.
(Not to be defaulter in any other bank /FI).
Purpose • To purchase piglets, equipment, feed, medicines, veterinary
aids, construction of shed, borewell, payment of insurance etc.,
required for carrying out pig rearing activity.

MUDRA Bee Keeping Scheme

• Bee keeping entrepreneurs who adopt improved methods of
Bee Keeping and have forward & backward linkages through tie ups.
Eligibility • Individuals, sole prop, partnership firm except corporate
bodies, institutions, SHGs, JLGs engaged in Bee Keeping
activities(Not to be defaulter in any other bank /FI).
• To meet the cost of establishing and carrying out Bee Keeping
Purpose
unit.
MUDRA Sericulture Scheme
• Sericulture entrepreneurs who adopt improved methods of
Sericulture and have forward & backward linkages through tie ups.
Eligibility • Individuals, sole prop, partnership firm except corporate
bodies, institutions, SHGs, JLGs engaged in Sericulture
activities.(Not to be defaulter in any other bank /FI).
• To meet the cost of cultivation of mulberry, rearing of
Purpose silkworms, construction of rearing house, purchase of equipment’s,
purchase of wire mesh etc.
Revised KCC Scheme
• All Farmers – Individuals / Joint borrowers who are owner
cultivators, Tenant Farmers, Oral Lessees &Sharecroppers.
• SHGs or Joint Liability Groups of Farmers including tenant
Eligibility farmers, sharecroppers etc.
• A benchmark of 15 KM radius for normal branches and 25
KM radius for ADBs may be followed in respect of new advances
/customer acquisitions.

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• Extending maximum loan limit for any crop per acre is decided
Loan Limits and by the District Level Technical Committee, a sub-committee
Scale of Finance constituted by District Consultative Committee (consists of
(SOF) representatives of farmers, Financial Institutions, Govt. Dept., and
Lead Bank).
• KCC will be in the nature of revolving cash credit account.
• Credit balance in the account will be eligible for interest at
Nature of
savings bank rate.
Account
• It is mandatory to issue ATM enabled KCC RuPay cards to all
eligible KCC holders.
• Short duration crops (upto 12 months)
• Long duration crops (12 to 18 months)
Crop Seasons
• Kharif (1st April to 30th September)
• and Rabi (1st October to 31st March)
• SOF is net of margin.
Margin:
• Hence no margin if SOF is adopted.
• The quantum of crop loan will be determined on the basis of
cropping pattern, the Scale of Finance (SOF) of the crop(s) to be
raised, the extent of the land to be cultivated and unforeseen
Quantum of contingent needs.
Loan • Marginal farmers will be sanctioned a composite limit (as Flexi
KCC limit) of Rs.10,000/- to Rs.50,000/- based on the land holding
and crop grown + small term loan investments (repayable in one
year), without relating to the value of land.
• Short term credit limit is fixed for the first year depending upon
• i. The crops cultivated as per proposed cropping pattern &
scale of finance.
• ii. 10% towards: post-harvest/household/ consumption
requirements, and
• iii. 20% towards: Maintenance expenses of farm assets, crop
insurance and Asset insurance.
• iv. For every successive year (2nd , 3rd , 4th , and 5th year),
Assessment of the limit will be stepped up @10%. (Short term credit limit sanctioned
Loan for 5th year will be about 150% of the first-year limit allowed to
farmers).
• Investment credit requirement of small value in the nature
of farm implements/ equipment’s etc. and repayable within a period
of one year will be included while fixing KCC limit (This portion of the
credit will not be included for automatic step-up during 2nd year to 5th
year but credit requirement for this portion in each year will be
reckoned for arriving at the maximum drawl limit for the respective
year).
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• The Short-term loan limit and investment credit limit if any

assessed for the first year or for the 2nd to 5th year will be the
Maximum Drawl Limit (MDL) allowed in the account, for the particular
year.
• The highest MDL among the five years as assessed above will
be the Maximum Permissible Limit (MPL) and sanctioned as the
Kisan Credit Card Limit.
Security For
• Hypothecation of Standing Crops. Valuation of crop loan
loans upto
security (135% of the KCC limit may be taken as value of crops) is
Rs.160,000/-
to be done by BM/FO at the time of renewal/ review annually.
• Hypothecation of Standing crops.
• Equitable Mortgage / Registered Mortgage of land /immovable
Security For property as applicable, the value of which is 100% of the loan
loans above amount.
Rs.160,000/- • Alternative security such as lien or charge on liquid securities
like NSC or Term Deposit of Bank or any other acceptable liquid
security. Collateral security is waived for KCC limit up to Rs.3 lacs
for loans with tie-up arrangement.
• For Crop loan limit up to ₹3.00 lacs
• Good Loans - Clear Sanction- Above 50 %
• Bad loan decline - Less than 50%

Credit Scoring • For Crop loan limit over ₹3.00 lacs below ₹50.00 lacs
Model • Good Loans - Clear Sanction-Above 70%
• Credit Score above 50 % to 70%- may be considered after
credit enhancements or to be referred to the next higher authority.
• Credit Score less than 50 % - should not be considered for
sanction.
• If the KCC borrower fails to repay or route the proceeds or
other credits into his/ her KCC as on the due date of repayment, the
account will become ‘overdue’ and hence will not be eligible for
additional interest subvention for prompt repayment.
Irregular
• Interest beyond the due date will be at card rate and
Accounts.
compounded half yearly.
• MDL of the KCC account will become zero and no further
drawls will be allowed.
• Branch will have to initiate recovery process immediately.
Interest • At present, rate of interest for raising short term crop loans up
Subvention to Rs.3.00

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lakhs per season / per farmer will be charged @7% p.a. (fixed) as per
Government of India (GoI) directives. It is subject to GoI providing 2%
p.a. interest subvention to Bank on such advances.
• Additional interest subvention of 3 per cent per annum for
prompt/timely repayment farmers as per GoI directive reduces the
effective interest rate charged to farmers @ 4 per cent per annum.
• Simple interest for one year or up to the repayment due
date, whichever is earlier.
Interest
• In case of non-payment within the repayment due dates,
application
interest will be applied at card rate, beyond the repayment due date,
compounded at half yearly rests.
• As per the revised guidelines of GOI / RBI, KCC accounts
Renewal should be renewed annually, well before the above due dates, every
year to continue the limit during the KCC validity period of 5 years.
TAT • 3 days after completion of all required formalities.
• Mandatory: All crop loans under KCC are to be covered under
Prime Minister Fasal Bima Yojana. (PMFBY) and the relevant crop
Crop Insurance
insurance particulars are to be uploaded in GoI Crop Insurance
Portal.
Repayment: Repayment due dates based on cropping pattern are as follows
Crop Period Due date of Repayment NPA Reckon date
Crop Season Period for IRAC”
Short Term Crop,
as 24 months (Two crop
system auto
season). In this ideal situation,
populates “MDL
12 Months RKCC account will become
expiry date” for
NPA at the end of 36 months
12 months
if not renewed

Crop Season Period for IRAC”

Long Term Crop,
as 18 months (One crop
system auto
season) In this ideal situation,
populates “MDL 18 Months
RKCC account will become
expiry date” for
NPA at the end of 36 months
18 months
if not renewed.
Crop Insurance: Prime Minister Fasal Bima Yojana (PMFBY)
Coverage of • Compulsory for loanee farmers and voluntary for non-loanee
Farmers farmers.
• Sum Insured for individual farmer is equal to the Scale of
Sum Insured /
Finance per hectare multiplied by area of the notified crop proposed
Coverage Limit:
by the farmer for insurance.
• There will be a uniform premium ranging from 2% for Kharif
Premium Rates
and 1.5% for Rabi for food crop, oilseeds, and pulses.
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• In case of annual commercial and horticultural crops, the

premium will be 5%.
• State Govt./UT will notify the cut off dates every year for both
Kharif and Rabi seasons well in the beginning of the season for
receipt of proposals of farmers / debit of premium from farmers
account (loanee and non-loanee).
• Within 15 days after cut-off date for collection of premium
branches should upload the soft copy of the details of individual
insured famers in the designated Govt. Portal.
• Banks are eligible for commission / service charges from
Insurance Company@4% of the premium collected from farmers.
OPERATIONAL
GUIDELINES: • Starting from the Kharif 2020, Farmers can choose not to
participate in the scheme, by giving a signed declaration, mentioning
that the farmer does not want to participate in the schemes any time
during the year for the upcoming season but at least 7 days before
the enrolment cut-off date.
• If application is received within 7 days of cut-off date for
enrolment, then the farmer will be removed from compulsory
enrolment from the upcoming season.

SBI Asset Backed Agri Loan

• To provide hassle free finance to farmers for farm related
Purpose:
activities.
• Farmers. Individuals/Joint, Sole Proprietary Concerns,
Partnership firms, Farmer Producer Companies, Corporate farmers,
Eligibility
farmers' producer organizations directly engaged in Agriculture and
Allied Activities
• Primary: Hypothecation of standing/future crops and assets
created out of bank loan
• Collateral: SARFAESI Compliant Immovable Property (Land
and Building) for value not less than 155% of the loan amount.
• Property mortgaged needs to be located within a radius of 25
km from the Branch, wherein loan is availed. (Controlling Authority
Security may decide going beyond 25 km on case-to-case basis).
• Physical gold belonging to the applicant, or the guarantor can
be deposited with the Bank.
• National Saving Certificates/ KVPS/ LIC Policies/Banks Fixed
Deposits belonging to the applicant, or the guarantor can be
accepted.
• Sovereign Gold Bond belonging to borrower can be accepted.
Repayment: • 12m -72m
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Processing
• 1% of the loan limit +GST, maximum 2 Lakh
Charge
• No renewal of limit/Review has to be carried out annually.
• On request from the borrower, limit can be brought to the
Renewal/Review
original level/level as assessed by sanctioning authority or cancelled
based on annual review.
Inspections • Half-yearly
• Up to Rs.10.00 lakh loan limit: self-declaration from the
Verification for borrower can be accepted without insisting for the bills / vouchers.
end use of • Above Rs.10.00 lakh loan limit: self-declaration upto 20% of
Funds. the loan limit, remaining limit, invoices/cash receipts within one
month from the date of disbursement of the funds.
• Up to Rs 50 lakh-Overdraft facility
Type of Loan
• Rs 50 lakh and above up to Rs 200lakh - Drop line OD facility
• Loan amount will be fixed on the basis of 5 times of annual
farm income /non-farm income from all verifiable sources or
• 65% of the value of land/building mortgaged and for other
liquid securities the respective margins/ LTV.
Quantum of
• Quantum of loan assessed as per need (i.e. production credit
Loan
as per acreage, cropping pattern and SOF + investment credit with
suitable margins) whichever less is subject to
• Minimum Loan Amount: Rs.3.00 lakhs 5. Maximum Loan
Amount: Rs.200 lakhs.
Maximum • 65% of the value of land/building mortgaged
Permissible • NSC, KVP. LTV – 60% of face value plus accrued interest.
Amount against • LIC policy 95% of surrender value.
the • FD – 90% of principal plus accrued interest.
securities i.e. • Sovereign Gold Bonds – 35% of Market value published by
LTV PMD, PBBU.
• Limit will be valid for 1 year, to be reviewed annually and
Review-ABAL application for review should be obtained.
Running OD • The expiry of limit has to be set for a period of one year in CBS
and reviewed annually.
• Drop Line OD
• Limit will be valid for 6 years, which has to be reviewed
annually and application for review should be obtained. While
Review-ABAL
reviewing the limit, the procedure of "Limit approval" has to be
Drop Line OD
done in CBS.
• The condition for review shall be "Outstanding less than or
equal to Current limit".

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• The provision for “Restoring the limit to original amount” is not
permitted for accounts in Risk Grade 1 and above as per the
above condition.
KCC-Gold Loan
• KCC. Against the
Facility
collateral security of Gold.
• Min Rs.1.61 lakh &
Loan Amount
• Max Rs.25 lakh
• To meet the short-term
Purpose crop production needs of
farmers.
• Any person engaged in
Agriculture or allied activities.
• Evidence of land holding
record and Agri activities is
Eligibility must.
• KYC compliance.
• The gold loan applicant
should be properly introduced
before the loan is granted.
252
Multi-Purpose Agri Gold Loan
Scheme (Non-Interest
Subvention).
• Demand Loan
• Min : Rs.5,000
• Maximum Rs. 25 lacs
• To meet the short-term
production / investment credit
needs of the Farmers, engaged in
Agriculture and allied activities.
• Any person engaged in
Agriculture or allied activities
• KYC compliance
• The gold loan applicant
should be properly introduced.
A. Borrowers applying for farm
related activities (MPGL Farm-
64314158): -
Branch to mandatorily obtain
evidence of land record from all
borrowers irrespective of loan
amount, except tenant farmer/oral
lessees & sharecropper who can
avail loan limit upto Rs 2.00 Lakhs
with self-declaration. (For tenant
farmer/oral lessees &
sharecropper, branch to record the
fact in Loan application cum
Appraisal). This shall be applicable
for all category of borrowers
(including salaried class,
pensioners, Bank staff,
businessmen, persons having other
income in addition to Agri income,
etc.) who is availing gold loan under
Agriculture segment and purpose of
`

loan would be towards Agriculture

and/or Allied activity.

B. Borrowers applying for allied

activities (MPGL Allied- 6431-
4161): -
Branch to make a discreet enquiry
about eligible allied activity to be
carried out and document the same
in loan
application/declaration & same
must be kept on branch record.
• Applicant should be a
resident of an area not exceeding
25 to 30 Kms from the branch.
However, it is not applicable to
existing customers and the
applicant from the non-banked
areas.
• Primary-Hypothecation
• Primary-Hypothecation of
of crops &
Security crops/Equipment’s&
• Collateral-Gold
• Collateral-Gold ornaments
ornaments
• Assessment of gold ornaments should be generally done by
Cash
Officer/Cash in Charge.
Assessment
• For loans above Rs.50,000, are to be assessed by reputed
and Security
gold appraiser
Valuation
• However, for Hyderabad, Chennai and Kerala Circles,
assessment by an appraiser has to be done for loans above Rs 1.00
lakhs.
• Advance value of gold ornaments per gram of different level of
purity (24/ 22/20/18 carats) is computed by keeping a margin of 25%
Advance Value
on the market value by Precious Metal Department, Corporate
Centre, Mumbai.
• a. Touch Stone Method
Gold Purity • b. Nitric Acid Test Method
testing • c. Specific Gravity Test Method
• d. Assaying Machines ( Karatometer) as a supplement
• Limits above Rs.1.61 • Up to Rs.25,000: NIL
Processing
lakh to Rs.3.00 lakh – • Above Rs.25,000 to up to
Charge
Rs.250+GST Rs.2.00 lakh: Rs.500+ GST
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`

• Above Rs.2.00 lakh:

• Limits above Rs.3 lakh - 0.30%of loan limit + GST
0.30% of the loan amount
+GST
• Demand Loan: The total
Repayment • Maximum 12 months period should not exceed one year
Period from the date of sanction. form the disbursement of the
loan.
• Limit for KCC to be fixed
based on Scale of finance for
the crop (as decided by District
Level Technical Committee) x
Extent of area cultivated + 10%
of limit towards post- • Investment credit needs of
harvest/household/consumptio various Agri activities are worked
n requirements + 20% of limit out, Unit cost/Project cost of
towards repairs and various Agri activities (‘A’)
Quantum of maintenance expenses of farm • Net weight of gold
Loan assets + crop insurance and/or ornaments
accident insurance including • X Advance value of Gold
PAIS, health insurance & asset • ornaments: ‘B’
insurance. • Loan amount: = Lower of
‘A’/‘B.’
• (or)

• the advance value of the

gold ornaments pledged as
security, whichever is lower.
• At present, rate of
interest for raising short term
crop loan up to Rs.3.00 lakh is
charged @7% p.a. (fixed) as
per Government of India (GoI)
directives.
• Rate of interest for • One Year MCLR rate +
Interest Rate
raising short term crop loan Applicable spread
above Rs.3.00 lakh is
determined by the Bank from
time to time, linked to 1- Year
MCLR + applicable spread.
• It is subject to GoI
providing 2% p.a. interest
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subvention to Bank on such

advances.
• Additional subvention of
3 % p.a. for prompt repayment
by the farmers. Thus, the
effective interest rate charges
to farmers are @4 % p.a.
• Once the LTV ratio 75% • Once the LTV ratio 75% is
Loan to Value
is crossed the gold loan crossed the gold loan account
Ratio
account would become NPA. would become NPA.
A Standard Operating Procedure (SOP) on the Agri Gold Loan has
SOP
been prepared for the benefit of the operating functionaries.
• 1. Branch has to send the Margin Call Notice SIM-GL/11 to the
borrower to make good the short fall amount or to pledge the
additional gold ornaments within 15 days from the date of the notice.
The steps to be
• 2. Second reminder notice SIM-GL/12 to be issued within 15
initiated if the
days.
LTV ratio is
disturbed • 3.Final marginal call notice SIM-GL/13 will be issued, stating
that if the account is not regularized within 15 days, the bank is
constrained to auction gold ornaments pledged to the bank as
security to liquidate the amount without further notice.
• 1. A letter should be sent as per SIM-GL/7 requesting the
borrower to repay the irregular amount / to close the account within
Calling up 15 days.
Advance on • 2: A final notice as per SIM-GL/8 to be served advising that the
irregularity. ornaments will be sold by way of auction if the loan is not liquidated
within 30 days. The date, time and proposed auction place should be
mentioned in the notice.
• a. KYC documents
• b. DP Note and DP Note Take Delivery Letter
• c. Application, appraisal and Acknowledgement letter: SIM-
GL/1
• d. Two copies of photograph of the borrower.
• e. Gold Ornaments Take Delivery Letter (SIM-GL/ 2)
Documents to • f. Witness letter in case of illiterate borrowers (SIMGL/ 3)
be obtained • g. Memorandum in respect of Gold ornaments deposited as
security(SIM-GL/ 9)
• h. Gold Loan Release Letter cum Acknowledgement” is
generated at the time of opening of gold loan account and it should
be kept with loan document. An acknowledgement for receipt of Gold
ornaments have to be obtained from the borrower and same has to
be preserved for 10 years for audit purpose. (SIM GL 10)
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`

• 1. KYC compliance of applicant

• 2. Proof of land records
• 3. Transfer of loan proceeds to applicant SB/KCC account.
• 4. Testing the purity of gold ornaments.
• 5. High value gold loan accounts with limits of Rs 5 lacs and
more should be appraised by two appraisers.
• 6. For Gold Loan accounts below Rs 5 Lakhs, 10 % of the loan
sanctioned during the month should be appraised by second
Fraud appraiser.
Prevention • 7.Mandatory Use of Agri LOS.
Measure. • 8. Surprise verification’ exercise of gold ornaments by an
officer other than the Joint custodians quarterly on a random basis
(30% or maximum of 100 gold loan accounts whichever is less.
• 9. Aggregate limit of the gold loans for single borrower/ CIF
should be restricted to Rs 25.00 lakhs.
• 10. Gold loans numbering more than 5 accounts per borrower
/ CIF should be referred to the next higher authority before sanction.
• 11. Branches need to tally the gold loan bags with the CC/OD,
Loan Balance files yearly by an officer other than the Joint Custodian.
• Yono Krishi Agri Gold loan made available on the digital
Yono Agri Gold
platform, for availing a loan against the pledge of gold ornaments for
loan
agricultural purpose.
Produce Marketing Loan
• Farmers, group of farmers, who are SBI borrowers.
• In case of non-borrowers and borrowers of other banks, PML
can be sanctioned against warehouse/cold storage receipt only.
• Partnership firms and organizations engaged in Agriculture or
Eligibility
allied activities are also eligible for Produce marketing Loan w.e.f.
01.06.2019.
• PML is sanctioned only against e-NWR in case warehouse is
registered under WDRA rule 2017.
Facility • Demand Loan
• Simplified Scoring Model for loans of Rs.25 lac to Rs.50 lac.
Minimum Score should be 60%.
• If the score is 50% and below 60% the loan will be sanctioned
Scoring Model
by next higher sanctioning authority.

S Type of Eligible Max.

Quantum and Max.
N Warehouse Product Code Tenure(Mo
Repayment Loan
o. Receipt [Description] nths)

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amount
(₹ lakhs)

64314260
e-NWRs issued [MC-DL-PML- ₹75 lakhs 6M
by WDRA eNWRs-6M]
1
registered 64314261
warehouses [MC-DL-PML- ₹75 lakhs >6M to 12M
eNWRs-12M]
64314262
[MC-DL-PML-
₹50 lakhs 6M
WHRs issued by CM-WHRs-
Approved 6M]
2
Collateral 64314263
Managers [MC-DL-PML-
₹50 lakhs >6M to 12M
CM-WHRs-
12M]
WHRs issued by 64314259
SWC/CWC [MC-DL-PML-
3 ₹50 lakhs Upto 12M
(Nonregistered OTHER
with WDRA) WHRs-12M]
The lowest of the following:
• Minimum support price, wherever declared.
Valuation of
• Price generally prevailing at the time of harvest of the commodity
Commodity
in the current year, or Current market price.

Primary • Hypothecation / pledge of Agricultural produce stored in the

Security godown or by pledge of warehouse receipts.
• Waived up to a limit of Rs
• Farmers own 1.60 lakhs.
warehouse • Above it mortgage of land
will be obtained.
• WHR issued by
approved warehouses,
Collateral • Waived up to Rs 10 lakhs
Warehousing
Security • and above it, mortgage of
Corporation/State
land is obtained.
Warehousing Corporations,
registered warehouses.
• WHR Issued by
Collaterally managed • Waived up to Rs 50 lakhs.
Warehouses.
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• Farmer’s Own • 40 % of • Minimum support

Warehouses, Approved price, Price at the time of harvest,
warehouses, CWC/SWC, or Current market price, whichever
registered warehouses is lowest.
• Category A: 25%: Lower of
the Current Market Price or price
• Margin • WHR issued by prevailing at the time of harvest.
Collateral Managed • Category B: 20%: MSP
warehouses
(Higher of A or B)

• Vegetables & Cotton

• 40%
crop
• Produce is stored at the farmer’s own house/warehouse, -
Inspection. monthly for loans above Rs.25,000/-
• and once in two months in other cases.
• Commensurate with the stated shelf life of the commodity or
Repayment date
Period of validity of the WHR/NWR but not exceeding 12 months, in any
case.
• To Small and marginal farmers having KCC, the interest
subvention is available on PML for a period of 6 months.
Interest
• The farmer who keeps his farm produce in warehouse against
Subvention
negotiable warehouse receipt, only.
• The benefit is only up to a loan limit of Rs 3 lakhs.
Agriculture Marketing Infrastructure
• The AMI (Agri. Marketing Infrastructure) sub scheme of ISAM (Integrated Scheme
for Agricultural Marketing) is applicable for new credit linked projects, where term loan has
been sanctioned by eligible financial institutions & has been approved for implementation
w.e.f. 22.10.2018.
• NABARD is the channelizing agency for release of subsidy @ 25% to 33.33% of
the capital cost for institutions eligible for refinance by NABARD or any other FI such as
State Financial Corporations (SFCs) approved by DAC&FW.
• The scheme is now extended for the term loans sanctioned up to 31.03.2022, or
until further order, whichever is earlier.
Particulars Details
• Margin min. 20% of Total Financial Outlay (TFO)
Applicant’s • If <20%, TFO assumed as 5 times margin
Margin • Min TL 50% of TFO (including subsidy)
• Margin = 20% to 50%

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• As per the Simplified/Regular non-trading model for limits

CRA above Rs 50 lakhs.
• Units having CRA of SB10 and above to be accepted.
DSCR • Indicative benchmark: 2:1
• Gross DSCR: 1.75:1
TOL: TNW
• 3:1 (net of subsidy)
Loan Tenor/ • The term loan tenor would normally be 10 years including
Repayment moratorium period of 12 months.
IRR • Minimum 15%
DER • 2:1 (net of subsidy)
• Primary Security:
• Land based storage infrastructure: Equitable mortgage of land
and building which is SARFAESI compliant.
• Other machines and equipment: Pledge/Hypothecation of
machinery/ Equipment’s
Security
• Collateral Security:
• Personal Guarantee of the borrowers, Proprietor, Partners
Obtention/Waiver of collateral security at discretion of the sanctioning
authority as per loan policy.
• Charge on other assets, wherever offered.
Capacity (MT)
Eligible for claiming subsidy
All categories of promoters across
Storage 50-5000 MT
the Country State Agencies, in all
Infrastructure 50-10000 MT
the States/ UTIs State agency
Silos upto 15,111 MT
storage projects
Kisan Credit Card Scheme: Working Capital for Animal Husbandry and Fisheries
• The Kisan Credit Card (AH&F) scheme aims at providing
adequate timely credit support to the Animal Husbandry & Fisheries
farmers for their working capital requirements.
Purpose
• The activities may include rearing of animals (dairy, sheep,
goat, piggery), poultry, birds, rabbit, fish, shrimp, other aquatic
organisms including capture of fish.
Eligibility • The KCC(AH&F) limit can be sanctioned to new farmer
applicants as well as the existing KCC (Crop Production) holders.
• Proposals with credit score of 50 & above are considered good for
Credit Scoring clear sanction.
Model • All KCC (AH&F) loans should be mandatorily processed in LOS-
Agri w.e.f. 16th May 2022

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• There is no minimum/maximum loan amount under KCC-

AH&F.
• The quantum of KCC-Animal Husbandry & Fishery loan limit
Quantum of
will be fixed on the basis of Scale of Finance (SOF) to be decided by
loan
DLTC.
• Enhancement/changes in limit will be based on the SoF fixed
by DLTC of the District from time to time.
Margin: • No separate margin needs to be insisted as the margin is
inbuilt while fixing the Scale of Finance (SoF).
Validity of • KCC-Animal Husbandry & Fishery Loan Limit is valid for 1
sanction: year.
• For existing KCC holders with Crop Production limits, Interest
Subvention is applicable for total KCC limits upto₹3.00 lakh including
the AH&F limits.
• In case of new KCC (Animal Husbandry & Fishery) without any
Rate of Interest
Crop production limits, the maximum eligibility for Interest Subvention
and subvention:
is ₹2.00 lakh.
• The limit for crop loan component will get priority for interest
subvention and prompt repayment incentive benefits and the residual
amount will only be considered towards KCC (AH&F) limit, subject to
total cap of ₹3.00 lakh.
• a. Primary: Hypothecation of animal/birds/fish/stocks of seed,
feed/organic and inorganic fertilizers/ lime/other soil conditioners and
assets created out of bank finance.
• b. Collateral: KCC (AH&F) Loan limit up to ₹1.60 lakh: NIL
• c. KCC (AH&F) limit above ₹1.60 lakh
• Equitable Mortgage / Registered Mortgage of land /immovable
Security
property as applicable, the value of which is 100% of the loan amount.
• Alternative security such as lien or charge on liquid securities
like NSC or Term Deposit of Bank or any other acceptable liquid
security.
• In States, where banks have the facility of on-line creation of
charge on the land records, the same shall be ensured by the
disbursing branch.
• The loan will be a revolving cash credit limit.
• Repayment will be fixed as per the cash flow/income
Repayment generation pattern of the activity.
• Cash flows should be routed through the account and yearly
interest should be serviced whenever it is applied.
• Branch will periodically review the facility and
Review/Renewal continue/withdraw/scale down the facility based on the performance
of the borrower.
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• Borrowers are required to route their farm proceeds or other

credits into the KCC-Animal Husbandry & Fisheries account, with a
minimum of loan amount plus interest and other charges, if any within
the repayment due dates.
Income
Recognition and • A loan granted for working capital requirement will be treated
Asset as NPA, if it remains overdue for more than 90 days and will be made
Classification system driven.
(IRAC) norms:
Scheme for Micro Credit to JLGs under Co origination Model
Purpose &
Eligibility Same as normal JLG financing

• Due diligence and Appraisal of loan: Pre- sanction due

diligence and Loan appraisal will be done by the NBFC. On being
satisfied with the proposal, the bank will carry out its own appraisal
Loan Appraisal based on the total loan amount including the NBFC exposure.
(By NBFC-ND-SI • Score based appraisal to be done.
& Bank) • CIBIL verification of individual member of JLG group availing
the loan to be done.
• Minimum score of 650 for consideration. a. Borrowers not
appearing in credit information company reports to be considered on
merits as per the scheme requirement.
Sanction • Common sanction letter to be signed by both Co-Originators.
• Quantum of loan to be arrived within the norms of the bank
applicable for the activity financed.
Loan amount
• Maximum Loan amount per Individual is Rs.1.00 lac.
• Margin- Nil
Facility • Term Loan for 12-36 months (Allied agri. activities)
• Repeat Loans / Enhancements will be based on requirement
of the economic activity and repayment history of previous loans.
• No enhancement in loan limit will be considered during the
tenure of the First Loan.
• Minimum Seventy percent (70%) of the instalments of previous
Repeat Loans loan should have been paid within 15 days of the due date for
considering Enhancement in loan amount.
• In respect of Drop line OD repayment within 30 days of due
date.
• Repeat loan / Restoration of limit can be considered on merit
on closure of existing loan.

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Processing
• Bank will not charge processing fee/Inspection charges for the
fee/Inspection
loan.
charges
• Common loan documents to be executed:
• a. Tripartite agreement
Security
• b. Arrangement letter
Document
• c. DP note & DP note delivery letter-Bank
• d. DP note & DP note delivery letter-NBFC
• Verification by the Co-Originator –NBFC.
End use of fund
• Insurance waiver for Loans up to Rs.1.00 lac per individual.
• As per agreement between the Co-Originators.
• Interest rate will be decided by both bank and NBFC separately
for their respective portion of credit and a single blended (fixed) or
weighted average (floating) rate of interest will be offered based on
Interest rate and
these interest rate.
application of
• Interest application to be done on common date by both Co-
interest
Originators.
• Periodicity of interest application monthly / Quarterly / others
as per agreement between the Co-Originators.
• Single blended interest rate will be applicable for the borrower.
• a. Both the Co-Originators will share the information on
borrowers and loan details with Credit Information Companies as per
RBI mandate.
Credit
• b. SB account no. of the borrower with SBI to be obtained if
Information
available or account to be opened at BC point /Branch.
• c. For individual borrowers Loan account to be opened in the
same CIF of SB account.
• Inspections and follow up will be done by the NBFC-ND-SI.
Inspections Post sanction inspection of minimum 10% of cases financed on
random basis by the nodal branch.
• Repayment: Monthly / Quarterly equated instalments of 12
Repayment & months to 36 months for loans granted for agri & allied agri. activities.
Recovery • Each loan account of a branch will be tagged by NBFC to their
area executive.
• Will be done by the NBFC-ND-SI.
Follow up and
• Proportionate sharing of amount recovered asper agreement
recovery
between the Co-Originators.
• a. Term Loan - 90 days from Equated Monthly Instalment due
NPA date.
Recognition • b. Drop Line OD- 90 days from due date.
• c. Risk Grading of accounts as per existing RBI norms.
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• Identified Branch official will select two borrowers each at

randomly selected five villages each month on rotation and interact
Portfolio Health with the borrowers and the Field executive of the village to ascertain
the repayment capacity / probability of default and strength of
recovery mechanism of the Co-Originator.

YONO-KRISHI

Yono Krishi is available in the post log-in page of YONO in five languages including
English. YONO Krishi will be a comprehensive platform for agriculture segment
customers with several features and services as listed below:
>YonoKhata>YonoBachat>Yono Mitra >Yono Mandi

1. YONO Khata: Regular financial & non-financial banking services like fund transfer,
recharges, bill payment, etc. Specialized services like Agriculture Gold Loan, Tractor
Loan, Kisan Credit Card, will be available under this category. Currently, under this,
Agricultural Gold Loan and KCC Review is only available

AGRI GOLD LOAN: YONO-Agri Gold loan process, available on the digital platform, will
provide simplified Loan Application to customers for availing a loan against the gold
ornaments for agricultural purpose. Bank is now offering 25 bps concession on Interest
on Multi-Purpose Gold Loan through YONO.

2.YONO Bachat: This category of YONO Krishi offers investment products and insurance
products like Mutual Funds, Life Insurance, General Insurance, Demat accounts etc.
Currently the products offered through this platform are: >Personal Accident Insurance
>Motor Insurance >Health Insurance >SBI Life Sampoorn Suraksha.

3. YONO Mandi acts as an online marketplace for all agri-inputs ranging from seeds,
fertilizers, pesticides, pumps, harvesters etc. 11 Merchants are boarded on this portal.

4.YONO Mitra acts as a knowledge hub for all agriculture related information. Currently,
different merchant partners available in the Mitra section are:

1. NAPANTA 2. Agrostar 3. IFFCO KISAN 4. Skymetweather (Specially for

Weather/Meteorological advisory) 5. ApniKheti 6. Farmrise7. Kisan Helpline 8. Bighat.

KCC review process available on YONO App and YONO Branch Portal
• KCC accounts of multiple co-borrowers, illiterate borrowers and branch-walk-in
customers can be reviewed through YONO Branch Portal.
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• Eligibility criteria of KCC borrower for submitting his / her application through
YONO, is as under:
• ➢ Customer should be Resident Indian.
• ➢ Only those customers who have cleared all previous dues are eligible to apply.
• ➢ Risk grade of any of the customer’s loan account(s) should not be 3 and above.
• ➢ Customer’s age should be greater than or equal to 18 years.
• ➢ Application can be submitted in YONO App (Self Assist mode) if KCC account
has one CIF.
• ➢ Multiple CIFs linked to KCC account will be handled on YONO Branch Portal
(branch assist mode).
• ➢ Customer needs to visit the branch where his KCC account is maintained with
the latest extract of land holding and cropping pattern, only if there is any change.
• ➢ Expiry date of MPL (Maximum Permissible Limit) should not be less than 6
months.
• ➢ Aadhaar should be linked in the CIF of KCC account before application is
processed at the Branch.
YONO Krishi Safal Dairy
• Features:
• It is a pre-approved loan available on YONO platform.
• Partnership/Tie-up with commercially viable corporates is mandatory.
• Farmers should have SB account with RuPay debit card.
• The assessment of loan limit will be done at GITC based on encrypted file
submitted by corporates.
• Pre-Sanction Survey and documentation need to be done at branch/RACC.
• Subsequently, loan account creation/limit authorization/disbursement will be taken
care by GITC.
• Borrowers will be intimated through SMS in local language through system
notifications.
Credit Guarantee Fund for Micro Units (CGFMU)
• All loans and advances granted on or after 8th April 2015 to non-farm enterprises
in Manufacturing, Trading and Services with credit limits upto Rs.10 lacs, are classified
under Pradhan Mantri Mudra Yojana (PMMY) under three categories, such as Shishu,
Kishore &Tarun as per the loan value of up to Rs.50000, Rs 50001 to Rs.5 lac and above
Rs.5 lac to Rs.10 lac respectively.
• In this regard, the Ministry of Finance (Department of Financial Services) had
announced a new Credit Guarantee Scheme ‘Credit Guarantee Fund for Micro Units
(CGFMU)’ to guarantee loans extended under PMMY.
• As per the scheme micro loans up to the specified limit (currently Rs.10 lakh)
extended by Member Lending Institution (MLI) to an eligible borrower, and Overdraft loan
amount of Rs.10,000/ -sanctioned under PMJDY accounts shall also be eligible to be
covered under Credit Guarantee Fund.
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• Following are the major modifications introduced in the Guarantee Scheme:

• "Collateral security" means the security provided in addition to primary security
/personal obligation of borrower/co-borrower. Primary security in respect of accredit
facility shall mean the assets created out of the credit facility so extended and/or existing
unencumbered assets which are directly associated with the project or business for which
the credit facility has been extended (personal assets to be excluded).
• First loss guarantees to be borne by the Member Lending Institution (MLI); has-
been reduced to 3% FROM 5%. However, first loss will be NIL for SHGs.
• First loss will be calculated on “Amount in Default”.
• The amount in default over and above 3% (if applicable) will be settled by the fund
to the extent of 75% on pro-rata basis, subject to the receipt of an Auditors ‘certificate
confirming eligible claim amount.
• Self Help Groups are eligible for Guarantee Cover under CGFMU from Financial
Year 2020-21.
• Loans sanctioned to SHGs between Rs.10 lakh and Rs.20 lakh during FY 2020-21
and thereafter would also be eligible for cover under CGFMU, irrespective of availability
of Group Guarantee of SHG Members (Sanctioned on or after16/04/2020 as per Gazette
Notification).
• Guarantee fee for SHGs shall be 0.25% during the first year and 0.5% on
subsequent years.
• Guarantee fee for SHGs shall be charged on outstanding balance at the time of
sanction (on pro rata basis) and thereafter on annual basis for renewals.
• Guarantee fee for Micro units in Aspirational Districts - The Guarantee fee would-
be charged against guarantee cover for micro loans located in the Aspirational Districts at
lower fees of 0.5% p.a. (on pro rata basis for first year) for guarantees availed on the
portfolios of FY 2020 -21 & FY 2021 -22. This shall be reviewed at the end of two years.
• The recoveries made after settlement of claim, in excess of legal costs, shall be
shared on the same percentage on which final claim amount was settled i.e., Final Claim
amount paid / Final Amount in Default for each MLIs for each guaranteed Portfolios. Such
recoveries shall be passed on an Annual basis for three years beyond the lifetime of the
Portfolio, within 30 days of each financial year end i.e. by April 30th of Year 5, Year 6 and
Year 7. At the end of Year 7, the Portfolio shall be marked as finally closed.
Credit Guarantee Scheme for Stand-Up India (CGSSI)
• The Stand-Up India scheme was launched by the Prime Minister on 05.04.2016.
• The objective of the scheme is to create an eco-system for SC, ST and women
entrepreneurs by providing bank loans over Rs.10 lakh and up to Rs.100 lakh to at least
one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower & at least one women
borrower per Bank branch for setting up a Greenfield enterprise.

Agriculture Infrastructure Fund (AIF) Scheme

Objectives • To enhance post-harvest management
Type of facility • Term Loan
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Quantum of loan • There is no minimum or maximum loan limit.

• ➢ Up to the loan limit Rs. 2 Cr -- Min 10%.
Margin
• ➢ Above Rs. 2 Cr -- 25%.
• ➢ Available to standard A/cs only.
• ➢ Interest subvention of 3% per annum up to a loan limit of
Rs. 2.00 Cr.
Subvention • ➢ Loan above Rs 2.00 Cr., interest subvention will be limited
to loan limit of Rs. 2.00 cr.
• ➢ Subvention will be available for a maximum period of
seven (7) years which includes moratorium.
• Aadhar Linking Compulsory
• Under the AIF scheme, Rs 1 lakh Cr will be provided by
banks and financial institutions as loans to PACS, Marketing Coop
Societies, FPOs, Agri entrepreneurs, Startups, etc. to establish
Cold Stores, Cold Chains, Warehousing, Silos, Assaying/ grading
and packing units, Ripening Chambers, etc.
• The disbursement in four years starting with sanction of
Rs.10,000 Cr in the first year and Rs.30,000 Cr each in next three
financial years.
• The Credit Guarantee coverage will be available for eligible
borrowers under the CGTMSE for a loan up to Rs. 2 Cr.
• The loans under the scheme carry tiered interest rate
structure i.e. loan limit up to Rs. 2 Cr ( 6M MCLR +100 bps with a
cap of 9% under MOU with DAC & FW, GoI) while loan limit above
Rs 2 Cr carry Bank’s CRA based pricing.

PM Formalization of Micro Food Processing Enterprises (PM FME) Scheme

• Increased access to credit by existing micro food processing
entrepreneurs, FPOs, Self Help Groups and Co-operatives.
Objectives
• One District One Product the Scheme adopts One District One
Product (ODOP) approach to reap the benefit of scale.
Quantum of loan • There is no minimum and maximum.
Margin • 10%
Educational
No Minimum Educational Qualification
Qualification
Primary Security Hypothecation of Assets created out of Bank Finance.
Collateral
No Collateral shall be obtained for loan up to Rs.2.00 Crs.
Security

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Credit guarantee from NABSanrakshan must be obtained (The

guarantee is a max of 75% of the loan amount, subject to a maximum
guarantee amount of Rs. 1.50 Cr).
• Capital Subsidy @35% of the eligible project cost.
• Credit Guarantee CGTMSE/CGFMU
Interest
Subvention • Interest Subvention for MSME Entities: 2% under the Interest
Subvention Scheme for incremental credit to MSMEs 2018 on the
outstanding balance
• Limit up to Rs. 50 Lakh: Assessment of limit by Scoring Model.
Assessment
• Limit above Rs. 50 Lakh: Assessment of limit by CRA method.
Animal Husbandry Infrastructure Development Fund (AHIDF) Scheme
• To help increasing of milk and meat processing capacity and
Objectives
product diversification.
Eligible Entities • Individuals/FPOs/ Pvt Cos
Quantum of loan • No minimum or maximum loan
Margin • 10%-15%
Interest • 3% to all standard accounts. Credit Guarantee by NABARD up
Subvention to 25% of credit
Repayment • 10 years with a moratorium of 2 years
• Limit up to Rs. 50 Lakh: Assessment of limit by Scoring Model.
Assessment
• Limit above Rs. 50 Lakh: Assessment of limit by CRA method.
Severe Natural Calamities – Conversion of KCC to ATL
• A new product for conversion of KCC to ATL under Severe Natural Calamities is
rolled out.
• The features of the product are as follows:
• ➢ It provides auto conversion of KCC to ATL.
• ➢ Product Code: 6430-4183
• ➢ Maximum Term: 60 months
• ➢ No ceiling on loan amount
• ➢ Repayment: Half Yearly
• ➢ Interest Capitalization: Half Yearly
• ➢ Moratorium: Maximum 12 months.

Stree Shakti Entrepreneur Loan (SSEL)

This scheme is designed with the partnership of “UN Women and World Bank”. The
features of the scheme are:
Particulars
Parameter
• To encourage women entrepreneurs to scale up their
Objectives
commercially viable activities.
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• Women entrepreneurs preferably from SHGs or

Target Group
Supply Chain
• Satisfactory repayment track record of repayment for
Eligibility
two years or a part of Supply Chain
• Minimum: ₹50000/-
Quantum of Loan
• Maximum: ₹4.00 lakhs
Employer Status • Should engage at least one additional worker
Facility • TL and/or CC
Margin • Minimum: 10%
• Primary: Hypothecation of assets created out bank
Security finance
• Collateral: NIL
• Available from CGFMU. Guarantee fees to be borne
Credit Guarantee
by the borrower.
• TL: 60 months maximum
Repayment
• CC: Annual review
Categorization • Under PSL
TAT • 7 working days
PM-KUSUM Scheme: Pradhan Mantri KisanUrja Suraksha Evam Utthan
Mahabhiyan Scheme
• The Ministry of New and Renewable Energy (MNRE), Government of India, has
launched New Scheme “Pradhan Mantri KisanUrja Suraksha evam Uttham
Mahabhiyan(PM-KUSUM) “to encourage farmers to increase their additional source of
income by utilizing their barren and un-cultivable land for solar or other renewable energy-
based power plants while selling their surplus RE power to DISCOMS.
Parameter Particulars
• To meet the farmers contribution towards:
• a. Solarisation of Grid Connected Agriculture Pumps.
Purpose
• b. Installation of Stand-alone Solar Pumps

• Minimum loan: No ceiling

• Maximum Loan: No ceiling
• Central Financial Assistance (CFA): 30% of the benchmark
cost or the tender cost, whichever is lower of the stand-alone solar
Agricultural pump.
Quantum of
• State Government: 30%
finance
• Farmer contribution: 40%
• (Bank finance: 30% and farmer initial payment of 10%)

• Subsidy for Northeastern States, Sikkim, J&K, HP,

Uttarakhand, Lakshadweep and A & N Islands:
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• Central Financial Assistance (CFA): 50% of the benchmark

cost or the tender cost, whichever is lower of the stand-alone solar
Agricultural pump.
• State Government: 30%
• Farmer contribution: 20%
• (Bank finance: 10% and farmer initial payment of 10 %)

National Livestock Mission—Credit Scheme: Features:

Parameter Details
Loan Product ATL Sheep/ Goat/Pig
Product Code 6430-6014
Quantum of loan Minimum: - Rs 25,000/- , Maximum: - Up to Rs 2.00 Crs

Margin 25%
Interest rate Interest rates are linked to One Year MCLR rate + spread.
Spread is determined by Bank from time to time. At present
interest rate is MCLR +3.60 %, i.e., 10.60% p.a.

Term/Moratorium Up to 120 Months/Maximum 12 Months

Repayment type EMI

Collateral Upto Rs 1.60 Lakhs – NIL
Above Rs 1.60 Lakhs –
➢ Mortgage of Land/Building.
➢ National Saving Certificates/ KVPS –
LTV-60% of face value plus accrued interest.
➢ LIC Policies- LTV- 95% of surrender value.
➢ Banks Fixed- LTV- 90% of principal plus accrued interest
➢ Sovereign Gold Bonds- Margin
-65%of Market Value.
Subsidy As per guidelines, first instalment of subsidy (50%) will be
released after disbursement of first instalment of loan. As the
subsidy is front ended, it can be treated as margin. The loan
should be disbursed only after approval of the subsidy amount
by the Department of Animal Husbandry and Dairying, Ministry
of Fisheries, Animal Husbandry and Dairying.

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ASSET PRODUCT- SME

MSME DEFENITION

New criteria for classifying the enterprises as Micro, Small & Medium Enterprises, w.e.f. 1st July
2020.

Parameter Micro Small Medium

Investment in Plant Not Not exceeding Not exceeding Rs.50 Cr

& machinery or exceeding Rs. 10 Cr
Equipment Rs. 1 Cr

Annual Turnover Not Not exceeding Not exceeding Rs. 250 Cr.
exceeding Rs. 50 Cr
Rs. 5 Cr

1. All units with GSTIN listed against the same PAN shall be collectively treated as one enterprise
and only the aggregate values will be considered for deciding the category as micro, small or
medium enterprise.
2. A composite criterion of investment and turnover shall apply for classification of an enterprise as
micro, small or medium.
3. If an enterprise crosses the ceiling limits specified for its present category in either of the two
criteria of investment or turnover, it will cease to exist in that category and be placed in the next
higher category, but no enterprise shall be placed in the lower category unless it goes below the
ceiling limits specified for its present category in both the criteria of investment as well as
turnover.
4. Calculation of turnover: Exports of goods or services or both, shall be excluded while calculating
the turnover of any enterprise whether micro, small or medium, for the purposes of classification.
5. Turnover and exports turnover for an enterprise shall be linked to the Income Tax Act or the
Central Goods and Services Act (CGST Act) and the GSTIN.
6. The turnover related figures of such enterprise which do not have PAN will be considered on
self-declaration basis for a period up to 31st March 2021 and thereafter, PAN and GSTIN shall
be mandatory.
7. All enterprises are required to register online and obtain ‘Udyam Registration Certificate through
Udyam Registration Portal.
8. The value of Plant and Machinery shall mean the written Down Value (WDV) as at the end of the
Financial Year.
9. In case of an upward change in terms of investment in plant and machinery or equipment or
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turnover or both, an enterprise will maintain its prevailing status till expiry of one year from the
close of the year of registration.
10. In case of reverse-graduation of an enterprise, the enterprise will continue in its present category
till the closure of the financial year, and it will be given the benefit of the changed status only with
effect from 1st April of the financial year following the year in which such change took place.
11.
CREDIT GUARANTEE FUND TRUST FOR MICRO AND SMALL ENTERPRISES (CGTMSE)

1. Credit Facilities eligible under the Scheme: New as well as existing Micro and Small
Enterprise, including Service Enterprises, with a maximum credit cap of Rs.2 crore and cap of
Rs 1 crore for retail trade per borrower are eligible under the scheme. Credit facilities above
Rs.50 lacs must be internally rated and should be eligible for Bank finance. Wholesale Trade
and Educational/Training Institutions are now eligible for coverage under CGTMSE.
2. Following credit facilities are eligible for coverage under Credit Guarantee Scheme of CGTMSE.
3. Credit facilities to all new and existing Micro and Small Enterprises (both in the manufacturing
sector as well as in the service sector).
4. Both Fund & Non -fund based Credit facilities viz. Term loan, working capital, composite credit,
LCs, BGs etc. can be covered.
5. Conditions for coverage under the scheme:
6. No collateral security or third-party guarantee is taken by the Bank. Under the scheme, “Primary
Security” shall mean the assets created out of the credit facility so extended and/or existing
unencumbered assets which are directly associated with the project or business for which the
credit facility has been extended.
7. Partial Collateral Security under CGS: w.e.f. 01.04.2018: CGTMSE has now introduced a new
“Hybrid Security” product allowing guarantee cover for the portion of credit facility not covered by
collateral security.
8. In the partial collateral security model, the CGTMSE has allowed to obtain collateral security for
a part of the credit facility, whereas the remaining part of the credit facility, up to a maximum of
Rs.200 lakh, can be covered under Credit Guarantee Scheme of CGTMSE.
9. CGTMSE will, however, have pari-passu charge on the primary security as well as on the
collateral security provided by the borrower for the credit facility.
1. There are two types of primary securities available for the Bank under the broad head ‘Primary
Security’ on which the Bank can take a charge for the said credit facility to qualify for CGTMSE
guarantee.
2. Tier-I: Assets created out of the credit facility so extended.
3. Tier-II: Existing unencumbered assets which are directly associated with the project/ business
for which the credit facility is extended i.e. Land & Building of factory office/godown.

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4. A charge on assets acquired out of the loan sanctioned i.e. Tier-I assets is necessary for invoking
guarantee.
Maximum Extent of Guarantee

Category Credit facility

Up to Rs.5 Rs 5 lakh to Rs Above Rs. 50 lacs and up to Rs. 200

lacs 50 lacs lacs

Micro Enterprise 85% of 75% of amount

amount in in default
default
Max Rs 37.50
Max Rs 4.25 lacs
lacs 75% of amount in default subject to
maximum of Rs.150 lacs
Woman
Entrepreneurs/
Units located in 80% of amount in
Northeast Region default
and (other than Max. Rs 40 lacs
credit facility upto
Rs.5 lakh to micro
enterprises)

All other eligible 75% of amount in default Max

category Rs. 37.50 lacs

SME -Retail 50% of amount in default Max

Traders and Rs. 50 lacs
Wholesale Traders

Salient Features:

1. All fund/non-fund-based facilities are covered.

2. The following are changes in Credit Guarantee Scheme of CGTMSE since 20/02/2018.
• Charging Annual guarantee fees (AGF) on outstanding loan amount rather than sanctioned
limit.
• Expanding the Coverage of the Credit Guarantee Scheme to cover MSE retail Trade segment
up to Rs.1 Crore.

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• Allowing loans with partial collateral security under credit guarantee scheme.
• Wholesale Trade and Educational/Training Institutions are now eligible for coverage under
CGTMSE.
• Member Lending Institutions (MLIs) are permitted to apply for guarantee cover anytime during
the tenure of the loan provided the credit facility is not restructured/remained in SMA2 status
in the last 1 year from the date of submission of the loan application for obtaining guarantee
cover. However, it is advised in the Master circular No CGTMSE NBG/SMEBU-
CGTMSE/51/2021 – 22 dt 30.11.2021 to obtain the guarantee cover in respect of all loans
immediately after sanction and before disbursement of loan.
3.
4. The main objective of the scheme is to give importance to project viability and secure the credit
facility purely on the primary security of the assets financed.
5.
6. Annual Guarantee Fee for all loans sanctioned on or after 01.07.2017 (including renewal of Cash
Credit facilities) must be borne by the borrower.
Time norm for payment of Annual Guarantee Fee (AGF):

1. Date of payment of First AGF is linked to Disbursement/Demand Advise date AND subsequent
payment is linked to close of the financial year.
1. Annual Guarantee Fee is to be paid to the Trust within 30 days from the date of Demand Advice
Notice (DAN) generated by CGTMSE or from the date of first disbursement of credit extended
by the Bank to a borrower whichever is later but within 30 days from the date of DAN. In case of
working capital, the payment is to be made within one month from the date of demand advice.

2. Tenure of the guarantee: The guarantee cover commences from the date of payment of
guarantee fee and runs through the agreed tenure of guarantee.

3.
Enhancements / Additional Credit Facilities and Renewal of Guarantee Cover for working capital
limits: All the enhancements/ additional credit facilities and renewal of Guarantee Cover have to
be notified in CGTMSE Site and AGF is required to be paid for the enhanced portion.

ASF/AGF is also payable for such cases where accounts are classified as NPA and/or claim has
been lodged with CGTMSE but is pending for settlement. Please note that in case of non- receipt of
ASF/AGF on or before the due date, the guarantee cover will lapse for the accounts and claim
application received, if any, for such accounts would not be considered for settlement.

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SME SMART SCORE

(Circular No.: NBG/SMEBU-SME ADVANC/52/2021 – 22 dt 22.12.2021)

Purpose For build-up of current assets and fixed assets needed for business purpose.
All MSME Units including Proprietorship Firm/ Partnership Firm/ Closely held
Target Group public & private limited company in Small & Medium industrial, trading and
service sector.
Eligibility • The chief promoter /chief executive should be 18 to 65 years of age
• The applicant must obtain a minimum overall score of 60% with a minimum of
50% under each sub-head like Personal Details, Business Details, Collateral
Details (except in cases where collateral is not applicable, the minimum marks
will be nil)
Facility Drop-line Overdraft, Cash Credit, Term Loan & NFB
Loan Amount Minimum: above Rs 10 lacs
Maximum: below Rs 50 lacs
Assessment WC: 25% of projected annual turnover for Mfg & Service enterprises
of limits 30% of projected annual turnover for Mfg & Service enterprises which
transact digitally (minimum 25% of sales through digital channels)
15% of projected annual turnover for trading enterprises

TL: Maximum limit of 67% of project cost for all units after stipulating a
margin
of 33%
Repayment
Cash Credit: Repayable on Demand (Renewal once in two years with annual
review)
Drop line OD/TL: Not more than 7 years including moratorium not exceeding 6
months.
Collateral Collateral Security need not be insisted as the loans are to be covered under
Security CGTMSE. However, if the borrower is not willing to bear the guarantee fee &
premium for CGTMSE, then collateral security as per Bank’s norms need to be
obtained.
Inspection Half yearly for standard accounts
Monthly for SMA 0/1/2 accounts till the account turns standard.

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SBI Asset Backed Loan

(Circular No.: NBG/SMEBU-SBI ABL/5/2022 – 23 dt 08.04.2022)

Purpose For build-up of current assets and fixed assets needed for business purpose.
Target Group Manufacturing, services, wholesale/ retail trade etc units along with self-
employed and professional individuals covered by MSMED Act 2006. Unit
should be registered as MSME
Facility Drop-line Overdraft; Cash Credit and NFB
Eligibility Existing Customer/New Units/Take-Over
Loan Amount Minimum : Above Rs 10 lacs
Maximum : Rs. 20 Crores. However, in cities viz, Mumbai, Delhi loans upto
Rs.30 Crores can be sanctioned by RCCC & above committees.
LTV% Immovable property: 60% of the realizable value
Repayment 1. Cash Credit: Repayable on Demand (Renewal once in two years with
annual review)
2. Drop line OD: 12 months to 240 months.
(Moratorium under Drop line OD for max. 18 months based on activity. Interest
to be serviced monthly during the moratorium period)
Margin Min. 25% cash margin for Non-Fund Based facility
Collateral • SARFAESI compliant immovable property in the form of EM/RM. Property
Security mortgaged needs to be within a radius of 25 km from the Branch, wherein
account is maintained (any deviation, to be approved by RCCC).
• Properties in the name of Associates will not be eligible.
• Industrial property both leasehold & freehold / land/plot not eligible as
security for ABL.
Inspection Half-Yearly for Unit & Property
Special The end use under “SBI Asset Backed Loan” does not include “Commercial Real
Mention Estate”.

SBI Asset Backed Loan for Commercial Real Estate – Commercial Projects

(Circular No.: NBG/SMEBU-SBI ABL/34/2020 – 21 dt 07.08.2020)

Purpose Creation/acquisition of real estate such as office buildings, retail space, industrial
or warehouse space, multiplex, hotels, restaurants, gymnasium, amusement
parks, cold storage etc. where the prospect for repayment would generally be
lease or rental payment or sale of asset. For both working capital (including pre-
operative expenses) and acquisition of fixed asset.
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Target Group Proprietorship Firms/ Partnership Firms/ Companies

Facility Drop-line Overdraft

Eligibility Existing Customers/ New Units/ Take-Over
Loan Amount Minimum : Above Rs 10 lacs
Maximum : Metro & Urban Centres: Rs.50 Crs Semi-Urban Centres: Rs.20
Crs Rural Centres: Nil
LTV% 50% of the realizable value of Immovable property
Repayment Dropline OD: 12 months to 72 months including moratorium. However, if the
repayment is from rental income, based on cash flows the loan can be
sanctioned upto 120 months.
Margin 25% both for Working Capital & Fixed Assets
Collateral • SARFAESI compliant immovable property in the form of EM/RM.
Security • Industrial property both leasehold & freehold / land/plot not eligible as
security.
• In case of loan taken for construction of commercial property, land on
which construction is to be done cannot be taken as collateral security. In
such cases collateral security should be freehold immovable property
other than the property on which construction is to be done.
Inspection Monthly inspection till completion of the project & thereafter at half yearly
interval.

Electronic Dealer Finance Scheme (e-DFS)

Purpose Authorized Dealers/Stockiest/Distributors/Franchisees of Industry Majors (IMs)

get finance for purchase of Inventory.
Facility Cash Credit
Eligibility Dealers/Stockiest/Distributors/Franchisees of Industry Majors having tie-up
arrangement with the Bank
Loan Need Based and Tie-up Specific
Amount
Margin Nil. 100% Finance
Repayment 1. The dealer has to make repayment within the agreed credit period as per
the tie up.
2. In case the dealer fails to repay within the grace period, no further drawings
will be allowed from his electronic dealer financing account.
Stock 1. Monthly
Statement

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Collateral 1. Nil / Or maximum up to 50% depending on each tie-up

Security 2. Loans can be covered under Mudra, Stand Up India, CGTMSE as per
guidelines for respective tie-ups
Method of 1. Transactions are done on Internet Banking Platform of the bank
Transaction 2. Transactions through 2 methods pull or push as specified the tie up
3. PULL MODEL -when the Industry Major makes a request for debit in the
dealer account)
4. PUSH MODEL -when the dealer originates the remittance.
5. Dealers will route the credit proceeds of the goods sold by them, if any
through the loan account .The amount received on account of sales relating
to any invoices shall be credited immediately (in the e-DFS account),
without any delay, notwithstanding the availability of credit period and/ or
grace period.

Electronic Vendor Financing Scheme (e-VFS)

Purpose To provide Inland Bill Discounting facility for Vendors of Industry Majors
Target Vendors of reputed Industry Majors/ Corporates under tie-up arrangement
Group
Facility Cash Credit (Clean)
Eligibility 1. Existing borrowers of Bank with continuously making profit for the last three
years
2. CRA rating should be SB 9 & above
3. Turnover of IMs > 150 crs.
4. IMs total vendor base at least 50
5. Outstanding Sundry Creditors not to exceed three months purchase.
Variants - Transactions are done on Internet Banking Platform of the bank
- There are 2 variants under e-VFS:
Vendor Exposure: Financing will be made to the vendors against the supply of
goods/services to reputed Corporate/IMs. The aggregate limits to the vendors are
considered as notional limit to the respective IMs
IM Exposure: Financing will be made to the reputed corporate/IMs for payment
towards the supply received from their vendors.
Loan Amt Need based
Margin & Nil
Collateral
Repayment 1. Primarily IM will agree to pay each receivable on the due date.
2. In case IM fails to repay on due date, Bank will have recourse to Vendor.

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SME e-SMART SCORE UNDER CONTACTLESS LENDING PLATFORM (CLP)

( > Rs.10.00 LACS TO Rs.500.00 LACS SOURCED FROM CLP)

(Circular No.: NBG/SMEBU-SME ADVANC/100/2019 – 20 dt 31.03.2020)

Purpose To provide hassle free finance for working capital/ Term loan for business activity
for units who apply on online lending platform.
Facility Cash Credit / Term loan
Eligibility 1. The chief promoter /chief executive should be 18 to 65 yr. of age. Age
criteria waived for corporates.
2. Applicant must match with the parameters set by Bank in CLP
3. Applicant must obtain a min. overall score of 60% with a min of 50% under
each sub-head like Personal Details, Business Details, Collateral Details
of our internal scoring model.
Loan 1. Min : above 10.00 lacs
Amount 2. Max : Rs. 500.00 lacs
Margin Working Capital: 25%; Term Loan: 33%
Repayment 1. Working Capital: Repayable on demand
2. Term Loan: Not more than 7 yr. including moratorium not exceeding 6
months
Collateral 1. In eligible cases, Collateral Security need not be insisted as the loans are
to be covered under CGTMSE.
2. If the borrower is not willing to bear the guarantee fee & premium, then
collateral security as per Bank's norms need to be obtained.
Go no go 1. SME e-SMART scoring model on CLP. The applicant must obtain a
criteria minimum overall score of 60% with a minimum of 50% under each sub-
head like Personal Details, Business Details, and Collateral Details of our
internal scoring mode.
Limit of 1. 115% of the last year sales.
projected 2. For annualizing current year sale, GST sale of minimum 3 months will be
Sales required. In case GST data is not available projected turnover 115% of
last year GST sale will be taken.
Assessment • If there is any difference in amount between in- principle sanctioned on
of limit the platform and final assessed by processing officer, deviation to be
approved by sanctioning authority.
• In case of renewal, if the in-principal amount is lower than the existing limit
enjoyed by the customer, then 1 year as advisory period is given reduce
the limit equivalent to in-principle amount.

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Others As the data is validated and pre-fetched from GST site, Income tax site, staff
accountability will not be carried out for the following points:
1. Verification of IT returns
2. Verification of GST returns
3. Verification of Balance Sheet
4. Assessment of the loan amount

Health Care Business Loan

(Circular No.: NBG/SMEBU-SME HCBL/46/2022 – 23 dt 14.09.2022)

Purpose 1. To finance qualified medical practitioners for setting up clinics;

hospitals/Nursing Homes, diagnostic centre, pathology labs, ambulance,
ayurvedic centres etc. under tie-up with/ employed qualified doctors.
2. For Expansion/renovation/ modernization of existing premises
3. Purchase of medical equipment including ancillary equipment
4. To provide finance to manufacturers of healthcare products/ permitted
drugs/ medical equipments.
Facility 1. Term Loan/ Cash Credit
2. Cash Credit limit is capped at Rs. 5.00 Cr only
3. Capex LC may be provided in respect of domestic/ overseas suppliers
within overall Term Loan exposure.
Eligibility 1. Individuals/ Proprietorship Firms/ Partnership Firms/ Corporate/ Trusts
(with powers to borrow)
2. Applicant should have min. 2 yr. of operations of diagnostic centre,
pathological lab, hospital, nursing home, etc.
3. In case of financing to Hospitals/ Nursing Homes, promoter should have
required min. qualification in the relevant discipline; like MBBS, BDS,
BHMS etc
4. Should have the required approvals/ registrations from the statutory/
regulatory authority.
5. ITR is mandatory in case of all existing units operating for more than one
Financial Year.
6. MSMEs must be registered in Udyam portal. URC should be updated in
CBS. • Average
Loan Limit Min : > Rs. 10 lacs ; Max : generally Rs. 50 Cr
(DMD of the vertical is vested with the powers to permit deviation for loan
beyond Rs.50 Crs on case-to-case)
Cash Credit limit is capped at Rs. 5.00 Cr only
Margin Term Loan: 25%; Cash Credit: 25%

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Circle CGM is vested with the powers to reduce margin upto 15% on case-to-
case basis.
Repayment Term Loan: Max. 10 years including Max. Moratorium of 18 months
Cash Credit: Repayable on demand with Annual Renewal
Collateral Min. 25% (For loans upto Rs. 2 Cr: Nil Collateral if covered under CGTMSE)

SME MARBLE PLUS

(Circular No.: NBG/SMEBU-SMEMP/54/2022 – 23 dt 10.11.2022)

Purpose To provide hassle free finance to the Marble, Felspar, Quartz and other
Stone Units for financing their multiple requirements for working capital/
capital expansion (capex) etc.
Facility Cash Credit / Term Loan / Drop line Overdraft /Non-Fund Based
Eligibility 1. Existing/ New units with Internal Rating SB/CUE-9 and better
2. Takeover of good units subject to take over norms
Loan Amount 1. Min: Above Rs. 10 lacs
2. Max: Rs. 10 Cr
Margin 1. Working Capital: Stocks: 25% & Receivables 40%
2. Term Loan: 25%
3. LC & BG: Min. 25% Cash Margin
(Reduction in margin by 5% may be considered by Sanctioning Authority,
only for units with CRA/CUE rating SB7/CUE-7 and better)
Repayment 1. Term Loan/ Drop line OD: Max. 120 months (including moratorium
not exceeding 12 months) with Annual Review
2. Cash Credit: repayable on demand
Repayment may be stepped up wherever cash accruals permit, at
the time of annual review in consultation with the borrower. Further,
it should be ensured that the unit meets following criteria
• DSCR >=1.50 (in all years)
• FACR > 1.25
• SMCR > 25% (avg. for all years)
Collateral Min. 50%, if not covered under CGTMSE
Other Conditions 1. Mining License/ other regulatory approvals to be place for units to be
eligible under the product.
2. Monthly Stock Statement Submission.
3. Quarterly Inspection

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Stand Up India

Purpose To meet all kinds of credit requirement for setting up Greenfield projects
under manufacturing, services sector

Facility Composite Loan (Working Capital / Term Loan)

Eligibility SC/ST borrowers and women entrepreneurs for Greenfield projects only
Loan Amount Min : > Rs 10 lacs and Max : Rs. 1 Cr

Margin Minimum 10%. Maximum Margin money on composite loan would be up to

25% which will be reduced through convergence with Central / State
schemes
Repayment Max. 7 yr. (including moratorium period up to 18 months)

Collateral Nil. To be covered under CGSSI (Credit Guarantee Scheme for Stand-Up
India Scheme)
Other Conditions Rupay Card to be issued for Cash Credit component
Circular no FIMM/GSS/5/2022 – 23 dt 07/11/2022 (SOP) on lodgement of
claim.

AAROGYAM health Care Business Loan

(Circular No.: CCO/CPPD-ADV/81/2021 – 22 dt 22.10.2021)

Target Hospitals/ Nursing Homes/Clinics/Medical Colleges

Group 1. Manufacturers (both medical professionals as well as nonmedical
professionals) of healthcare products.
2. Manufacturers and suppliers of medical oxygen, Oxygen.
etc.,
Purpose To finance qualified medical practitioners having experience of 2 years for
setting up Clinics/ Nursing homes/ Hospitals/ Pathology Labs/ Diagnostic Centre.
1. For purchase of medical equipment including ancillary equipment
2. For Expansion/ renovation/ modernization of existing hospitals/ nursing
homes/ clinics.
3. To provide finance to manufacturers of healthcare products for meeting
working capital requirement and acquisition of fixed assets.
4. To set up Oxygen plant along with power back up for medical use.
etc.,
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Facility CC / Term Loan/LC/BG

Eligibility 1. Individuals/ Proprietorship Firms/ Partnership Firms/ Corporate/
Trusts/LLPs
2. Applicant should have minimum 2 years of experience in operating the
diagnostic centre, pathological lab, hospital, nursing home, etc. irrespective
of constitution.
3. In case of financing to Hospitals/ Nursing Homes, the promoter should be
preferably having professional qualification in the relevant discipline; like
MBBS, BDS. However, in cases of existing Hospitals, where the
promoters/Owners may not be having professional qualification such as
MBBS, such cases can be considered on the merit basis. However, in such
cases professional qualified doctors should be a part of management of the
hospital.
4. In case of manufacturers of healthcare products, the said qualifications
may not be available, hence it should be ensured that the promoters have
required regulatory approvals for manufacturing the healthcare products.
(medicines, equipment, PPE kit, nursing kits etc).
5. Promoters must be aware and should have the required approvals/
registrations from the statutory/ regulatory authority for setting up/running
Hospitals/Clinics/Nursing Homes/Medical Colleges.
6. Should have the required approvals/ registrations from the statutory/
regulatory authority.
7. ITR is mandatory in case of all existing units operating for more than one
Financial Year.
8. MSMEs must be registered in Udyam portal and should possess Udyam
Registration Certificate.
9. Average Gross DSCR of 1.50 in case of TL.
10. FACR >1.25 ICR > 2
Loan 1. Minimum: Rs. 10 lakhs ·
Amount 2. Maximum: Need Based. (Subject to guidelines on Exposure norms & Credit
Risk Concentration as per Loan Policy.)
Margin Project Debt: Equity: 3 :1 • Term Loan - 25% • Cash Credit - 25% (Stocks),
Receivables: 40% Cover period: 90 days. • BG/LC – 25%
Collateral Loans up to Rs. 2 Cr:
1. Nil collateral, if covered under CGTMSE. Guarantee Fee to be borne by
borrower.
2. For coverage under CGTMSE, Hybrid collateral security model is also
applicable as per extant CGTMSE guidelines.
3. However, if the borrower is not willing to pay the guarantee fee or not willing
to cover the exposure under CGTMSE, then Min. 25% SARFAESI enabled
collateral security needs to be obtained.

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Loans above Rs. 2 Cr:

1. Units with ECR rating of BBB (+/- included) & better: NIL Collateral.
2. Units with CRA/ CUE rating up to SB-10/ CUE-10 & ECR BB+ & below
rating: Minimum 25% SARFAESI compliant tangible collateral security.
Repayment Cash Credit: To be renewed yearly. Repayable on demand.
Term Loan:
• Maximum period of 10 years including moratorium period.
• Maximum moratorium 18 months for construction of Hospital/Nursing
Home/Clinic (6 months in case of purchase of equipment only).
• For Brownfield (Expansion/Modernization/Renovation) project: Moratorium
may be between 6-12 months.

SME Fleet Finance

(Circular No.: NBG/SMEBU-SBI FLEET/50/2021 – 22 dated 24.11.2021)

Purpose To finance new vehicles E.g., trucks/tankers/ trailers/ tippers/buses/ luxury

buses & passenger vehicles

Facility Term Loan

Eligibility 1. Existing / New Fleet Operators having experience of 3 yrs. or more in
the same line with min. 10 vehicles.
2. Requirement of min. 10 new vehicles or min. loan Rs. 50 lacs
3. Average Gross DSCR: minimum 1.50. (below 1.50, special approval
from authority one step higher than sanctioning authority). Eligibility is
linked to the scores obtained under scoring model. Borrower has to get
min 50% score under scoring model to be eligible for SBI Fleet Finance
Scheme.
Loan 1. Min: Rs. 50 lacs
Amount 2. Loans upto Rs.2 Crores to be sanctioned under CGTMSE only.
3. Max: Rs. 10 Cr (Higher limit i,e. more than Rs 10.00 crs can be given
upon approval from competent authority)
Repayment 1. Scores between 50% to less than 60%: Max. 60 months
2. Scores 60% and above: Max. 66 months
Collateral Up to Rs 2 Cr: Nil. To be covered under CGTMSE
> Rs. 2 Cr: Min. 20% including unencumbered vehicles in existing fleet (current resale value to
be taken)
(In case borrower scores min. 60% under the Scoring Model, sanctioning authorities may allow
for Nil Collateral)
Other Take over not permitted
Conditions

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SME FINANCE FOR CA FIRM

Purpose 1. Extend finance to ‘CA Firms’ registered with ICAI (Institute of

Chartered Accountants of India) and currently under practice.
2. Overdraft: For payment of salaries to employees/ Overheads/
Expenses pertaining to office.
3. Term Loan: Purchase of Office Equipment, Computers, Fixtures
Fixed, Assets/ Renovating office premises. For Construction of office
premises on self-owned land/ firm land/Promoter’s land. For
acquisition of ready built new office premises on ownership basis.

Facility Overdraft, Term Loan

Eligibility 1. CA firm should be registered with ICAI.
2. Promoter’s Age: Minimum Age: 25 Years, Maximum Age: 65 years
3. CA must have Certificate of Membership (CoM)/ Certificate of
Practice (CoP) issued by ICAI.
4. CoM/ CoP should be at least 5 years old. Minimum ITR – ITR for
past 3 years should be available.
5. The applicant must obtain above 60% score as per score card
under the scheme.
6. Applicant must be registered in UDYAM portal as MSME.
7. Applicants with CIBIL score below 650 will be ineligible.
Loan Amount Overdraft: Min: Rs. 2 Lakhs; Max. Rs.25 Lakhs
(25% of Gross Receipts of the CA Firm)

Term Loan: Minimum. Rs.2 Lakhs & Maximum (Delhi, Mumbai,

Chennai, Kolkata, Ahmedabad, Bengaluru Rs. 100 Lakhs & Other
Centres (State Capital/ Tier-I cities: Max. Rs.75 Lakhs)
(75% of the project cost )
Repayment 1. Overdraft: On demand.
2. Term Loan: Repayable in 60 EMIs. (With maximum moratorium of
12 months).
Collateral 1. Overdraft: Nil. Term Loan: Loan to be covered under CGTMSE.
CGTMSE fee to be borne by the borrower.

Other Minimum acceptable DSCR: 1.50

Conditions
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SME OPEN TERM LOAN

(Circular No.: NBG/SMEBU-OPTL/56/2022 – 23 dt 21.11.2022)

Purpose of Any genuine commercial purposes in the same line of activity, with regular
the loan business, of the customer.
These would include Up gradation of technology, Expansion and
modernization and substitution of high-cost debts/ of other banks/FIs, etc.,.

TARGET All units under manufacturing sector

GROUP
Under Service Sector: Healthcare Industry (Hospitals, Doctors Pathological
Labs and Nursing Home), Hospitality Industry Hotels, Restaurants, etc.), and
Transport operators with minimum 25 vehicles.

Facility Term Loan

Eligibility Existing customers with CRA rating up to SB-6/ CUE-6 and better or ECR of
BBB (if available) and better.
In case of Customer is banking with us for more than 5 years with satisfactory
track record, i.e. the account has not slipped to category SMA-1 with CRA
rating of SB-8 / CUE-8 & better or ECR of BB & better.

Non-customers /Units not having borrowing arrangements with us shall not

be eligible.
Loan Amount Both manufacturing and services sector enterprises: 25% of total limit
sanctioned with a minimum of Rs 25.00 lakhs and maximum of Rs. 10.00
crores.
Repayment Repayment period not to exceed 8 years including a moratorium period.

Collateral Extension of charge over current assets, fixed assets

Additional tangible security is to be explored wherever possible

Other DSCR, FACR & SMCR to be calculated and the following benchmark to be
Conditions ensured.
Gross Average DSCR – Minimum 1.75 (in any individual year, min 1.25)
FACR -- Minimum 1.25
SMCR – Minimum 20%
Disbursal of term loans to be done through LLMS invariably.
Sanction is valid for 12 months
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Sanjeevani SME Loan for Health care Sector (under ECLGS- 4)

(Circular No.: NBG/SMEBU-SME HCBL/21/2021 – 22 dt 22.06.2021)

Purpose of Term Loan: For setting up on-site oxygen generation

the loan
Non-Fund : For Capex LC For import of Capital Goods,

TARGET Existing Hospitals/ Nursing homes/ Clinics/ Medical Colleges having credit
GROUP facilities with outstanding as on 29.02.2020

Facility Term Loan, Letter of credit (On maturity, Letter of Credit should be liquidated
by debit to Term Loan)
Eligibility Eligible borrower means existing Hospitals/nursing homes/ clinics /medical
colleges having credit facility and outstanding as on 29.02.2020 with an MLI
with days past due upto 90 days as on March 31, 2021 and requiring
assistance of upto Rs.2 crore for setting up low cost technologies like
Pressure Swing Adsorption etc. for on-site oxygen generation.
Should have the required approvals/ registrations from the statutory/
regulatory authority. Necessary approvals/ licenses should also be obtained
from PESO (Petroleum Explosives Safety Organization) and FDA (Food &
Drug Administration)
ITR is to be mandatorily obtained in case of all existing units operating for
more than one Financial Year
Average Gross DSCR of 1.20 in case of Term Loan. DSCR calculation may
be limited to oxygen plant only
Interest Coverage Ratio > 1.50
Unit should be classified as Standard Asset as on date

Loan Overall exposure including Term Loan and LC should not exceed Rs.2 Crs
Amount under GECL 4.0 for financing of setting up in-site oxygen generation plants.
Margin Nil

Repayment Term Loan: Maximum period of 5 years including moratorium period.

Maximum moratorium 6 months. The last date of disbursement is
31.12.2021.

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Collateral Loans to be covered under ECLGS 4.0. Hence, CGTMSE/ Collateral security
need not be obtained.

Other As per updated Operational Guidelines (as on 30.03.2022), borrowers

Conditions availing assistance under ECLGS 4.0 shall open Escrow account on which
MLI/ Bank shall have its charge.

RINN Suraksha

Purpose For funding of CGTMSE fee plus applicable GST.

TARGET New as well as existing Micro and Small Enterprises which are paying the
GROUP Annual Guarantee Fee (AGF) for the CGTMSE coverage.

Facility Demand Loan (There should only one Demand loan for each guarantee fee
paid).
Eligibility CRA/CUE As applicable for the facility for which the CGTMSE coverage is
sought.
Loan Amount Equivalent to the amount of AGF for CGTMSE (Coverage plus applicable
GST)
Repayment 12 months
Collateral Nil
Others Primary and Collateral: Nil
Outstanding under the Rinn-Suraksha loan will be classified under “unsecured Loans”
in CBS

Lease Rental Discounting Scheme (LRD)

(Circular No.: CCO/CPPD-ADV/78/2022 – 23 dt 18.10.2022)

Purpose To meet borrower’s liquidity mismatch (Proceeds of loan amount not to be used
for any speculative purposes, whatsoever, including speculation on real estate
and equity shares).
Facility Term Loan
Eligibility Owners of Residential buildings and Commercial properties, which are to be
rented or already rented to MNCs / Banks/ Large & Medium sized Corporates /
Central & State PSUs / Government Offices (both Central and State)/reputed

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Public bodies such as Municipal Corporations etc./ Warehousing/ Logistic

Parks, especially cold storages for essential items and Data Centers.

However, the properties should not be or have been leased to Social

Infrastructure projects such as Schools, Colleges, Orphanages, Hospitals, Old
age homes, Nursing homes etc.

The scheme is not available for financing rental receivables of Malls irrespective
of their location and lessee.
Loan - Min: Rs. 10 lacs
Amount - Max: Rs. 50 crores (R&DB branches)
Above Rs. 50 Cr (CCG/CAG branches)
Assessment Lowest of a,b or c as under
a. 95% of NPV of *net rent receivable for the residual lease period including the
lease period covered under renewals with 1 st stage step-up rentals. NPV is to
be calculated on the effective rate of interest proposed.
b. 70% of realizable value of the property
c. 70% of *net rent receivable

Minimum DSCR of 1.15 with a stipulation that Minimum DSCR should not fall
below 1.05 after carrying out sensitivity analysis with following variables. a)
Increase in Interest Rate by 2.00% b) Decrease in Rental Receipts by 10%
Repayment Upto Rs.50 cores Maximum 10 years or residual lease period and the lease
period under renewal clause, whichever is lower. However, in case of tenants
being large MNCs/ Banks/ PSUs /Govt. Depts., Maximum 15 years, or residual
lease period with renewal clause, shall be considered for assessment of loan,
whichever is less

Above Rs. 50 crores Maximum 15 years, or residual lease period and the lease
period under renewal clause, whichever is lower.
Nature and SARFAESI compliant properties located in Metro / Urban / Semi- Urban centers
location of (categorization of centers as per Census – 2011) only. However, the properties
property should not be or have been leased to Social Infrastructure projects such as
Schools, Colleges, Orphanages, Hospitals, Old age homes, Nursing homes etc.

Sanctioning Authority may consider LRD proposals extended for warehouses/

Logistics Parks/ Cold Storages/ Data Centers located in rural areas on case-to-
case basis subject to strict compliance of SARFEASI guidelines and meeting all
other requirement/criteria of the scheme.

The realizable value of property to be mortgaged should be at least 143% of the

loan amount.

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Others Minimum 3 months EMI should be kept with the branch as Debt Service Reserve
Account (DSRA).

An escrow account to be opened with our Bank for credit of rentals, against
which the loan is sanctioned.

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DIGITAL BANKING IT Channels (Alternate Channels)

YONO (You Only Need One)- Omni-channel digital platform
• Resident Individual, aged 18 years and above
• Should be literate,
• Possess an Aadhaar card, with complete address, and PAN card,
Eligibility
• Only one Digital Savings Account will be permitted for a mobile number,
• Should be liable for tax in India only, and no other country/jurisdiction
outside India.
• No physical account opening form needed
• Account will be opened in single name only.
• Nomination is mandatory.
• Customer can visit any branch of their choice for Aadhaar biometric
authentication, photo verification with the reference number generated
Features through App/portal.
• A single signature on the bar-coded T&C form needs to be taken.
• Passbook will not be provided. Customer will be sent statements by email
on monthly basis.
• Platinum Debit Card.
• RINB facility will be provided through self-registration process.
• The responsibility of KYC compliance would rest with the Branch
opening the account.
• Rules regarding AML/CFT & FATCA, KYC updation will be to Digital
Savings Account also.
• The applicable rate of interest would be the same as that of the
Bank’s Regular Savings Bank Account.
Other
• Can be converted Digital Savings Account to joint account any time.
features
• Contact 1800111101 or email feedback.yono@sbi.co.in for info.
feedback, query, or complaint.
• The bar-coded Terms & Conditions form will have to be sent to Document
Archival Centre (DAC).
• AOF in digital form will be available in DMS & can be retrieved from DMS
in case of need.

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• Cheque Book charges same of Regular Savings Account.

• A personalized special Platinum Debit Card (with customer’s photo)
branded as Digital Savings Bank Account issued free of cost as against
levy of issuance charges of Rs. 300/- + taxes.
Benefits on the Card:
• Withdrawal Limit = ATM Rs. 1 lac, POS Rs. 2.00 Lacs ii) Personal
Business
Accident Insurance (Death Cover) – Rs. 5 Lacs iii) Purchase Protection
Rules &
– up to Rs. 50,000/-
Charges
• For accounts with QAB Rs. 25,000/- and above, the following
additional benefits are proposed:
• Annual maintenance charges of 250/- p.a. at present applicable on
Platinum Card will be waived.
• 25% concessions across the board in scheduled charges levied on
services applicable to operation of account.
Helpline 1800111101
No.
YONO • 90 % against STDR, 75 % against TDR
portal loan • Min 25000/- maximum 5 Crs.
against
STDR &
TDR
• Hassle-free, 3 clicks journey
• 0.25% concession on the interest margin.
• No document & no branch visit.
• Facility available 24x7
OD against • No sampling in RFIA.
FD • Contributing to green initiative.
• Minimum Overdraft amount = Rs 25000.00
• Overdraft cannot be created where residual maturity of FD is less than 6
months.
• FD should be in Single Name

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• Personal Accidental Insurance (PAI)

• Mutual Fund Investment
Other • Group Health Insurance
service in • Insta Life Secure (SBI Life Sampoorn Suraksha) term insurance plan
YONO up To Rs. 20.00 lac. available to pre-selected customers of 18-55 age
group on YONO platform only. No document or medical test is required
for this policy.

JOURNEY OF YONO

ONBOARDING TO YONO: Account opening in YONO platform works broadly on 3 models as under

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Security

Along with the device, INB User ID and MPIN, the SIM identification value will also be used while
creating the encrypted value, which will be validated during log in. Further, the registration will be
allowed only on the device where the SIM of the mobile number of CBS (RMN) is present. Post login,
YONO will match SIM Binding encryption Device INB User ID MPIN SIM RMN the mobile number in
CBS for the user with the mobile number by which the registration has been done and if there is a
mismatch it will guide the customer for re-registration.

Insta Savings Account

Transaction limit per transaction Rs. 49,999/-
Maximum balance that can be maintained in the account at Rs.1 Lakh only
any point of time
Aggregate of all credits in a financial year, in the account Rs. 2 Lakh
taken, shall not exceed
• Full KYC needs to be completed within 12 months of A/c opening, else the
account will be closed, and amount will be parked in BC.
• Customers will be able to transfer funds using NEFT, IMPS, UPI but RTGS
is not allowed. Customers will not be able to open FD, RD.
• No loan will be given to the customer. However, a basic Rupay card will be
issued to the customer.
• No minimum balance requirement on this account.

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• No debit/voucher transaction or any other signature-based services will be

allowed in the branch.
• Cheque book/Passbook will not be issued to the customer.

Insta Plus Account- (Video KYC Saving Account)

• Insta and Insta Plus are e-2-e based account opening platforms without
branch intervention exclusively on digital platforms.
• Insta is a liberalised KYC account but Insta Plus is a fully KYC account
without having any transaction restriction.

• It is a self-assist model that involved 3 stages as below:

1. Stage-1Self-onboarding: Token number will be generated is valid for
15 days.
2. Stage-2 Video Calling Officer (VCO): Video-based Customer
Identification Process VCIP
3. Stage-3: Confirm by CA (Concurrent Auditor)

• Eligibility criteria for customer to open Insta Plus Savings Bank account:
a) Resident Indian above 18 years of age who is literate.
b) Customer is a “New to Bank customer” and does not have a CIF.
c) Customer should be physically present in India during the Account
opening process.
d) Aadhaar bears the current address of the customer. Also, the mobile
number registered with UIDAI should be in possession of customer.
e) Original PAN card is mandatorily to be displayed during the Video Call.
f) Mobile is mandatory whereas Email address is optional.
Other key features of Insta Plus Savings Bank account:
a) Account will have mandate as “singly operated” only. No joint
accounts permitted.
b) Debit voucher transaction or any other signature-based services will
not be allowed in the branch. e.g., cheque related services, KYC
update etc. as the customer’s wet signature is not being captured in
V-CIP process.
c) Cheque book will not be issued to the customer.
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d) In case, the customer desires to avail any signature-based services,

the request to be handled as per SOP.
e) Passbook may be issued when the customer requests for passbook
facility.
Renewal & Linking of SBI Life Individual policies journey on YONO APP:
• YONO APP>>Insurance>>My Insurance>>Renewal Due Banner.
• The path is accessible to all customers whose policies are due for renewal
from T-29 days up to T+30 days (T=due date of renewal).

Digital A/c is customer self-assist model of account opening. At the end of the a/c opening journey,
customer will be allotted a reference number that will be validated within 15 days at any branch of
customer’s choice. It is available in two models 1. e-KYC 2. OVD Officially Valid Documents. Digital
Savings Bank Account has been conceptualised as a fully digital account which will be opened by
customer with very limited intervention/assistance by branch personnel. Customers may avail the
applicationbased service by downloading ‘YONO by SBI’ App available on Android/ iOS.

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YONO Wearable –Titan Pay Watch

• Now SBI a/c holders can tap their Titan Pay watch on a contactless
payment POS machine for payments of up to Rs. 5,000
• Max 5 Txn per day.
• limit of Rs.10000/- in a day.
• Customer can have maximum of 3 wearables linked to his/her account.
However, customer can buy as many as wearable and gift it to
relatives/friends.

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YONO Lite

Transaction Limits
Easy PIN
Easy
Overall Limits
PIN
Per day Limit (in Daily (Individual Charges
Transaction Overall
Rs.) Limit (in overall (In Rs.)
category
Rs.) daily
limit
limits)
Transfer within Self
2.00 crs. 1,00,000 Nil
Accounts
2.00 crs. 1,00,000
Fixed / Recurring
99,99,999 1,00,000 Nil
Deposit
Third Party Transfer
10,00,000 1,00,000 Nil
within SBI
10,00,000 1,00,000
Interbank Transfer -
10,00,000 1,00,000 Nil
NEFT
Not
Applicable
Interbank Transfer-
10,00,000 as Minimum Nil
RTGS
amount is
2,00,000.
Per Txn
Overall Daily Limit

IMPS 1,00,000 Nil

Limit 2,00,000
Per Txn
Per Txn Limit
Limit 10,000
10,000
Quick Transfer Nil
Per Day Limit
Per Day
25,000
Limit 25,000
Credit Card VISA Rs.15 Per
1,00,000 1,00,000
Transfer transaction +Tax
1,101 - Per 1,101 - Per
Transaction Transaction Rs. 2.50 Per
mCash
2,202 - Per Day 2,202 - Per transaction +Tax
5,101 - Per Month Day

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5,101 - Per
Month

Daily transaction Daily

transaction
UPI limit of Nil
limit of Rs
Rs. 1,00,000
1,00,000
Bill
Payment 5,00,000 1,00,000 Nil
s
Overall daily Per Txn
Mobile Limit 10000
Top Per Txn Limit Nil
Overall daily
Up 10,000
5,00,000 1,00,000 limit
limit

50000
SB
Prepaid 50,000 50,000 Nil
Cards
Merchant DTH
50,000 50,000 Nil
and Bill Recharge
Payment Post-paid
bill 50,000 50,000 Nil
payment
IMPS
Merchant
Payment
s Overall Daily
Nil Nil
Limit 1,00,000
Merchant
Payment
s
SBI Life
50,000 50,000 Nil
Premium
Transaction Limit for
a newly added
1,00,000 1,00,000 1,00,000 1,00,000
Beneficiary (First 4
days)
Minor Account
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Transaction Individual Limit Total Easy PIN Easy PIN limit

Txn Limit Limit Txn Limit
overall limit
Top-up 2000 2000
Bill Payment
DD
e-RD, e-TDR, e-STDR
5000 5000 5000 5000
NEFT
IMPS - P2A/P2P
UPI

YONO Cash

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E to E Digital SERVICES

RTXC and RTXC Elite products are added on YONO platform.

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YONO Krishi
• Available in language = 12
• Customer obtains the Reference number which is valid only for 15 days.
• Customer needs to visit the home branch for further processing/sanction.
• An incomplete application is available for the customer to resume and complete within 30
days from the start date.
• YONO Krishi is a platform for agriculture segment customers with services classified and
built on 4 pillars (under Khata Vertical).
• YONO Khata: Regular financial & non-financial banking services like fund transfer,
recharges, bill payment, and specialized services like Agriculture Gold Loan, Tractor
Loan, Kisan Credit Card, will be available under this category.
• YONO Bachat: This category offers investment products and insurance products like
Mutual Funds, Life Insurance, General Insurance, Demat accounts etc.
• YONO Mitra: This prominent non-banking services section will offer
• Weather updates
• Crop prices updates.
• Provides Agro-advisory services and weather forecast updates.
• Provides expert advice through website and call.
• access to market prices, crop management techniques,
• crop insurance, cold storage services, pest & disease management information.
• YONO Mandi: This segment will be an ONLINE MARKETPLACE (OMP) which will enable
farmers to purchase farm inputs from merchants e.g., fertilizers, seeds, tractors, pesticides
etc.

YONO KRISHI-AGRI GOLD LOAN: - will provide a simplified Loan Application to customers
for availing a loan against the gold ornaments for agricultural purposes.
• Customer is literate, aged 18 years and above.
• Customer is KYC compliant and his Aadhaar details are available in CBS.
• Customer has internet banking credentials and has registered on YONO.
• Customer must visit any of their choice branch with Gold ornaments, proof of land
records/ proof of Agri activity, Aadhar card.
• Zero processing fee for loans up to Rs. 25,000
• Minimum Loan: No ceiling
• Maximum Loan: Rs. 25 Lacs

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• Existing customers of the Bank aged 18 years and above.

• Less than 5 Agri Gold Loan Accounts are Live in CBS.
• Total sanctioned amount in all Live Agri Gold Loans should be less than 25 Lacs.
• Reference number which is valid only for 15 days

YONO KRISHI-KCC REVIEW: - To provide digitized, simplified, seamless and standardized

process for review of KCC account. (Conditions)
• Customer should be Resident Indian.
• Previous dues – only those customers who have cleared all previous dues will be
eligible to apply.
• Risk Grade - Risk grade of any of the customer’s other loan account(s) should not be
3 and above.
• Age >=18 years, no upper age limit. 24*7 availability for submitting his/her KCC
Review application.
• No branch visit is required if Aadhaar is linked in KCC account and if no change in
land records/limit after review is less than Maximum Permissible Limit (MPL).
• Status of the loan is updated through SMS.

YONO Business
Applications integrated are
1. Corporate Internet Banking (CINB)
2. Cash Management Product (CMP)
3. Supply Chain Finance (SCF)
4. e-Trade
5. e-Forex
Portal access Omnichannel platform is available on web (desktop/notebook), tablets
and mobile (smartphones). The web version can be accessed on
yonobusiness. sbi
URL for Yono https://yonobusiness.sbi
Business
• Corporate user needs to have only one set of login credentials to access all the
applications.
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• For new corporates, single registration to Yono Business will do. No need to register
separately for each app.
• Yono Business Branch Interface is the intranet facing branch application through
which branches can provide support to corporates.
CLASSIFICATION OF CORPORATE IN YONO BUSINESS
A. Single User Corporates-Account operated by a single person, they may opt for
• Enquiry Only
• Enquiry & Transactions
B. Multiuser Corporate- Accounts handled by more than one user. They may opt for

Enquiry Only
1. Single Admin
Enquiry & Transaction
Enquiry Only
2. Multi Admin
Enquiry & Transaction

BHIM Aadhaar-SBI-
BHIM-Aadhaar-SBI will merchant to accept payments for goods/services using
Android smartphone and fingerprint reader, from customers having Aadhaar
seeded bank accounts, by authenticating the customer's biometrics.

Merchant Requirements:
• Aadhaar seeded account with SBI
• Certified Biometric Reader with Micro USB / USB C-Type connector
• Android smartphone with internet connectivity and OTG support for
connecting biometric device
• Android version 4.2 or higher
Benefit to Merchant
• Real-time payment directly to merchant’s account.
• Merchant can track their business by getting transaction reports.
• Commitment charges = Nil

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• Biometric is the main factor of authentication for the BHIM Aadhar Merchant
payments.
• Payments processed under BHIM Aadhar SBI Merchant app are based
AEPS (Aadhar Enabled Payment Services).
• Fund settlement under BHIM platform transactions is done on a real-time
basis.

Bharat QR (Consumer)
Bharat QR is a QR (Quick Response) code-based solution wherein the
customer makes payment to merchant by scanning a static or dynamic QR
code.
• It is interoperable among major Card schemes i.e., Visa, MasterCard and
RuPay.
• The users, who want to make payment through this mode can access the
same through our yono lite– Login Page.
• Both Debit Card Users and INB Users can avail Bharat QR facility
• Mini Statement: Last 10 Transactions available

Bharat QR (Merchant)
Benefit to Merchant
• Merchants can accept payments directly to their accounts ‐ No need to spend
time to deposit cash into their account.
• Escape from hassles of receiving payments in cash ‐ No risk of forged notes
• Escape from the hassles of keeping the record of charge slips - Merchant
gets the notification in his Bharat QR App.
• Card-less transactions: Scan & Pay
• Less instances of chargebacks. As the customer himself initiates the
payment, the occurrence of chargebacks is minimized.
• Safe and Secure
• Monthly Service Fee/Rental - Nil
• Commitment Charges - Nil
• History of last 20 transactions is available on the merchant's App (on mobile
phone)
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• Settlement of transactions is not required. Merchant gets the credit on a T+1

basis.
• Merchant has the option of generating both static QR code (for fixed sale
amount) and dynamic QR code (for different sale amounts).

Requirement
• A Smart mobile phone (Presently Android).
• A data connection (2G, 3G or 4G). Bharat QR Merchant application installed
on Merchant mobile phone.
• Account with SBI

Small Merchants (Annual Other Merchants (Annual

Particulars
Turnover up to Rs.20 lakhs) Turnover above Rs.20 lakhs)
Debit 0.30% (MDR cap of Rs. 200 per 0.80% (MDR cap of Rs. 1000
Cards transaction) per transaction)
Credit
1.90% 1.90%
Cards
MDR of 0.10% less than POS

UPI Transactions (at BHIM SBI Pay and NPCI BHIM/other BHIM based apps)
Per day transaction limit 100000
Per transaction limit. (Maximum) 100000
Number of transactions per day limit 10

BHIM SBI Pay

Pre-Requisites
• Mobile - Android 4.2 and above, with internet connection
• Mobile number present in the android handset should be registered in Bank
Account
• Valid email address or Alternate Mobile No.
• Details of debit card linked to the account required for UPI PIN set up
• All the customers have savings or Current accounts with any bank.
• The Mode of Operation in the linked account should be (a) Single (b) either
or Survivor or (c) Anyone or Survivor
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Transaction Limits
• Max. limit per transaction: Rs.1,00,000/- Max. transaction limit per day is
Rs.1,00,000/-
• Limiting first transaction to 5000/- with a cooling period of 24 hours.
• Limits on Collect Request to 5000/ per day (24-hour cycle) for new users
and 5 collect initiation requests/day for all users.
Collect request is valid up to 30 minutes (can set up to 45
minutes)
Transaction history____transactions
20 transactions of last 45 days
of last. days
Customers of another bank can use Yes, Customer of any Bank can use
BHIM SBI pay
Fund Transfer methods available VPA, Account no + IFSC, QR Code
Self-onboarding P2P category. Used by I am a Merchant
which tab.
Customer Center Contact Number. 1800112211/18004253800
What is the maximum number of No such limit
accounts that can be mapped in BHIM
SBI Pay?
With BHIM SBI Pay, you can collect Toggle between Consumer and
payments as a Merchant or make Merchant modes.
payments as a Consumer by simply
using the switch from the Menu icon at
the top left. What is that switch?
How many VPA Can be added to BHIM 2
SBI
BHIM Pay SBI made available in Hindi, Tamil
English &......
In BHIM SBI Pay, in case of Mobile Rs.5000/- for 1 day
device change and/or SIM change, the
revised limit per day is reduced to?

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Doorstep Banking facility to Senior Citizens

Age More than 70 years at 100 centres pan India.
Examples Cash pick up, Cash Delivery, Cheque pick up for collection and
clearing, Form 15 H pick up, Obtaining KYC documents, Cheque
book request pick up and so on.
Toll-free The service request may be made by the registered customer at
no Toll-Free Number 1800111103 between 9 am to 4 pm on working
days at the centre.
• Doorstep Banking Services shall be provided only to individual customers
having KYC compliant Savings Bank / Current Account with registered
mobile number in CBS.
• These services were provided for our customers through Branch staff and
Doorstep Banking Agents (engaged by Business Correspondents)
Services
(a) Non-Financial Services
Pick up Services Delivery Services
Cheques/Instruments Statement of Account
for Collection / Clearing
Cheque Book Term Deposit Advice
Requisition Slip
IT / Govt. / GST Challan TDS & Form 16 Certificate Issuance
with Cheque
Standing Instructions Pre-paid Instrument / Gift Card
Submission of Form Demand Draft, Pay Orders
15G/ 15H (*)
Non-personalized Cheque Book
(b) Financial (Cash) Services
Cash Pick up (Deposit) & Delivery (Withdrawal) (Minimum Rs. 1,000/-, Maximum
Rs. 10,000/- per request).
Cash pick up (Deposit) and Cash delivery (Withdrawal) transactions shall be
fulfilled using Micro - ATM. The transaction can be done using AePS (Aadhar
enabled Payment System) or through Debit Card.
Service Charges
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Service Description Cost Per Call / Service

Financial Rs 100/- + GST
Non-Financial Services Rs 60/- + GST
Calls made to Call Centre for enquiry No Charge
purpose (where Agent for service delivery
is not required)
Accounts/ customers not eligible for Doorstep Banking Services:
• Joint Accounts operated jointly, Former /Survivor and Later /Survivor
• Minors’ Accounts including under Guardianship
• Accounts operated through Power of Attorney
• Non-KYC compliant Accounts & Inoperative Accounts.
• Savings Bank Accounts opened under MACT Claims / LISSA
• NRI / Foreign National Account holder
• Non-Individual Customers like Trust, HUF, Associations etc.
• Accounts having status as Stop and/or Hold
• Illiterate Customers
DSB services can be accessed through Mobile App, Web Portal and Call Centre
Mobile
Vendor Web Portal Toll Free No
App
M/s Atyati
Doorstep
Technologies https://doorstepbanks.com 18001037188
Banking
Pvt Ltd
M/s Integra
PSB
Microsystems https://dsb.imfast.co.in/doorstep/login 18001213721
DSB
Pvt Ltd

FASTag
SBI has introduced SBI FASTag in its product portfolio to pioneer the
transformation, aiming for digitization of toll transactions at toll plazas as a part of
National Electronic Toll Collection (NETC) program.
• It is a Radio Frequency identification technology (RFID) sticker/tag affixed
on a vehicle’s windshield for the purpose of Electronic Toll Collection.
• For the purpose of RFIDs, NHAI has divided all types of vehicles into seven
categories.
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• 1800 11 0018 is the customer care number of the SBI FASTag system.
• Customers can recharge SBI FASTag online using Debit/Credit cards, Net
Banking etc., through https://fastag.onlinesbi.com/Home
• Validity of FASTag is unlimited, with a guarantee period of three years.
• Bank has engaged AISECT, NICT, SAVE and CSC for issuing and
marketing SBI FASTag.
• FASTag related complaints could be redressed by mailing to
helpdesk.fastag@sbi.co.in and helpline number for addressing FASTag
related complaints at toll plaza level is 1033.
• Issuance fees = 100/-
• It is 10x5 cm, rectangle shape, multi-layered tag, containing chip & antenna
inside its layers.
• Through RFID method, the information is read at the toll plaza from the tag
a) Limited KYC holder’s account, Amount not more than Rs. 10,000/- in their
FASTag (Prepaid) account. The monthly reload limit is also capped to Rs.
10,000/-.
b) Full KYC Holders account, Amount cannot have more than Rs. 1 Lakh in
their FASTag (prepaid) account. There is no monthly reload cap in this
account.
• Documents= Minimum KYC details, vehicle RC Copy, Photo of the
customer. Full KYC FASTag Account
• Customer care number of SBI FASTag = 1800 110018 / Email ID-
helpdesk.fastag@sbi.co.in and CC to: team.sbietc@sbi.co.in

Google Pay (G-pay)

Version required to use Google-pay for 5.0 & above
Android
Basic requirements set up Google account Google account, Active Mobile
number, Active Indian bank
account
Quickly transfer money with nearby G-Pay Audio
users using ________, no need to share your
mobile number. Once chosen this mode of
transfer, it calibrates the device for cash
mode.

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Name the URL for detailed guidelines and https://support.google.com

help on Google pay app
Presently in how many languages G-Pay 8
App provides the services
Maximum transaction limit per day on Rs.100000
GOOGLE PAY
Google integrated with which bank for its SBI
mobile payment app G-pay
What is handle for G-Pay? @oksbi
Who are the partner banks for G-Pay SBI, HDFC, ICICI, AXIS Bank.

________mode transaction is used to quickly

transfer money with nearby G-Pay users Tez mode
using Audio?
If we use Maestro Debit cards for creating Use 01/49 as expiry date
UPI Pin, then which date we use as expiry
date
Mahesh recently purchased an iPhone. He iOS 10.0
wanted to install Google Pay app on his
phone. What is the min. OS required for
iPhones for Google Pay?

MOPAD (Multi Option Payment Acceptance Device)

MOPAD is a PoS terminal that provides a unified single device to merchants for
acceptance of payments through various modes of payment viz. Cards, Bharat QR
App, UPI & e-wallet.

Tagline for “MOPAD” is Don’t carry cash, don’t carry card. cash ki aadat badlo
A customer swiped SBI debit card at a merchant POS Acquirer
issued by AXIS Bank for making a payment, what is
AXIS called in the MAB terminology

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A customer swiped an SBI debit card at a merchant POS Issuer

issued by AXIS Bank for making a payment, what is SBI
called in the MAB terminology
A customer swiped an SBI debit card at a merchant POS Off-Us
issued by AXIS Bank for making a payment /-, what type
of transaction is this?
The incentive paid by the Acquiring Bank to the Issuing Interchange Fee
Bank for promoting payment through card is called
Cash@pos transaction limit per day 2000
MOPAD full form Multi option payment
acceptance device
MOPAD is PoS terminal that provides unified single 1 card-debit/credit
device to merchant for acceptance of payment through prepaid
various modes of payment. What is those payment 2 Bharat QR
mode 3 UPI QR
4 E-Wallet
In case of post installation guidelines if settlement
beyond 3 days (t+3) attract penalty of ___? (POS) 0.50%

Merchant Acquiring Business (MAB)

MAB Merchant Acquiring Business
MDR The commission is charged by the acquirer to the merchant or
service provider. It is also termed as Merchant Service Fee (MSF).
Interchange The incentive paid by the Acquiring Bank to the Issuing Bank for
Fee promoting payment through card.
Scheme Fee The service fee charged by Card Schemes/intermediary agencies
i.e.
Visa/MasterCard/RuPay for facilitating interbank payments and
routing of transactions.
On-Us When a State Bank Group Debit Card is swiped on SBI PoS
Transaction terminals.
Off-Us When other Bank Card including SBI Credit Card is swiped on SBI
Transaction PoS
terminals.
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Stakeholders • Issuer: The Bank that issues cards.

in MAB • Cardholder: Customer / Non-customer to whom a payment card
is issued.
• Merchant: Business entity that accepts payments through cards
• Acquirer: The Bank that sets up necessary connection with the
merchant and provides infrastructure to accept payment through
Cards (in our case SBI).
• CARD Schemes: Provides card payment network, facilitate
clearing and settlement such as VISA/MasterCard/RuPay etc.
Benefits to • Need not carry cash, which is risky
Cardholder • Maintains higher balances in the account resulting in higher
interest on deposits.
• Saves time and money in visiting bank branch / ATM to withdraw
money and spend the same at merchant outlet, who has to again
deposit the same in branch.
• The time saved results in lower cost and higher productivity as
time saved can be gainfully utilized.
Benefits to • Cash handling is avoided.
Merchant • The customers have tendency to higher purchases while using
the card than cash, thus more sales, and higher profits.
• The customer’s loyalty to merchant increases due to the facility.
• The facility can also have provision for customer loyalty points
which are widely used to attract the customer to the outlet
repeatedly.
Benefits to • The cost of transaction at Branch or ATM is avoided and results
Bank in reduced costs.
• Additional income to the Bank from interchange fee depending
on the card type.
• Higher CASA deposits.
• Arrest the flight of business to other banks due to not offering the
facility.
• Leveraging card base to facilitate customer convenience and
thus facilitates customer loyalty.

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Point of Sale (PoS)

PoS is a hassle-free and secure way to receive payments by merchants from their
customers having debit/credit cards. The merchant will be provided with PoS terminals.

The government has waived the merchant discount rate (MDR) on transactions made
using RuPay cards and through BHIM-UPI apps.

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De-installation Charges:
If de-installation is done within 6 months from the date of Rs.500
installation
If de-installation is done after 6 Months but before one year Rs.150
If de-installation is done after 1 year Nil
CASH@POS: Value-added service available at our terminals enabling debit
cardholders to withdraw cash 2000/- per day.
As per the directives of the RBI, transactions up to a value of Rs.5,000/- can be paid
just by tapping the card near the PoS Machine, provided the card and the PoS
machine, are enabled for NFC (Near Field Communication)
• Merchant has to obtain the signature of the customer on the Invoice, as Invoice
is the proof of delivery. In case of doubt, for a transaction above Rs.10000/-
Merchant can insist on verifying a Valid identification document.
• For a transaction of Rs.50000/- and above, Merchant has to obtain a copy of
the PAN Card of the Customer.
• In case of purchase of jewellery, a copy of PAN Card is Required if it is above
Rs. 2 lakhs.
At the end of the day, the merchant has to initiate the process of Settlement through
the PoS Terminal. (Menu --> Settlement --> Print Batch Closing Report) so that, the
number of transactions carried out through the PoS machine are settled by the Bank,
and the amount is credited to the Merchant’s Account later on.
Sanction of a new Proposal for POS Approval/Installation involves
• Identification of Merchant and Processing of Application
• KYC Compliance
• CIBIL Verifications
• Pricing and daily transaction limit
• Recommendation and approval
• Execution of Merchant Establishment (ME) Agreement and arrangement letter
• Installation of POS terminals at Merchant Location
• Submission of Control Returns
Complaints
Complaints: For any type of complaints branches and other operating functionaries
may send their requests at complaints.mab@sbi.co.in.

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If complaint is not resolved in 48 hours, branch/marketing unit may take up the matter
with MAB vertical through email, fax, e-Help Desk, telephone etc.

SBI Quick
An app that provides Banking services by giving a Missed Call or sending an
SMS with pre-defined keywords to pre-defined mobile numbers. This service can
only be activated for the mobile number that is registered for a particular account
with the Bank.
• Missed Call Banking- a new service.
Features
• Available for SB/CA/Overdraft/Cash-credit accounts.
i) Balance Inquiry of registered account ii) Mini Statement of
Account
registered account iii) 6 Months e-Statement iv) Home/ Edu Loan
Services
Intt e-Certificate v) Request for Cheque Book
i) Blocking of ATM Card ii) ATM Card Switch ON/OFF iii) Green
Other Services
PIN generation
Product
i) Car Loan features enquiry ii) Home Loan features enquiry
Information
PM Social
Security i) Registration of PMSBY ii) Registration of PMJJBY
Scheme
SMS, REG (space) account
Registration number' to. E.g., REG 09223488888
12345678901
give a Missed Call or send an
Balance Enquiry 09223766666
SMS ‘BAL' to
give a Missed Call or send an
Mini Statement 09223866666
SMS ‘MSTMT' to
SMS ‘BLOCK (space) XXXX’
Blocking ATM
to (XXXX = last 4 digit of card 567676
Card
no)

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SMS HLI or ELI <space>Loan

Intt. e-
A/c No. <Space>4-digit 09223588888
Certificate
password to
“CHQREQ” to. You will
receive an SMS. Please send
Consent SMS
Request for
(CHQACC<space>Y<space> 09223588888
Cheque Book
6-digit No. received in SMS)
to within 2 hours of receipt of
SMS for further processing
SMS “SWON/SWOFF<space>
ATM <space> XXXX” to
SWON/SWOFF 09223966666
(Activate/ Deactivate ATM
usage)
SMS ‘HOME' or ‘CAR' to, Full
Loan Enquiry List of Services: SMS “HELP” 09223588888
to
SMS ‘DREG (space) Account
De-Registration 09223488888
Number' to
Further, apart from this, 6-month e-statement, Education Loan
Other and Home loan interest e-certificate can also be obtained from
SBI QUICK app.
For NRI customers:
 To register: REG<SPACE>Account Number to = 8422833333
 Details of facilities = SMS ‘HELP’ to = 8108511111
 Balance Enquiry: Missed call to = 9220055222
 Mini Statement: Missed call to = 9220055333

SBI Quick facility is available in

15 languages including English
how many languages.

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Manual Intervention Transaction (MIT) linked with CBS

These are the transactions for which requests received from the customers are
placed in CBS by the INB system for further processing by the branch officials.
• Processing of MIT in CBS: -
• When a customer makes request through INB for issue of Demand
Draft/PAN registration/Closure of loan A/C, etc. they will be logged as
Manual Intervention transactions and branch user has to act in CBS. There
is no automated alert system to inform individual Branches about such
transactions. Branches have to verify for any ‘Unprocessed’ transactions at
frequent intervals throughout the day.
• Different kinds of Manual Intervention Transactions
1 PAN Registration
2 Issue of Demand draft
3 Closure of Loan A/C

NEFT RTGS IMPS

• There will be 48 half-hourly batches every day. The
settlement of first batch will commence after 00:30 hours and
the last batch will end at 00:00 hours.
• The system will be available on all days of the year, including
holidays.
• NEFT transactions after usual banking hours of banks are
expected to be automated transactions initiated using ‘Straight
NEFT Through Processing (STP)’ modes by the banks.
• The existing discipline for crediting beneficiary’s account or
returning the transaction (within 2 hours of settlement of the
respective batch) to originating bank will continue.
• Member banks will ensure sending of positive confirmation
message (N10) for all NEFT credits.
• All provisions of NEFT procedural guidelines will be applicable
for NEFT 24x7 transactions as well.

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• Compensation in case of any delay in returning the failed

payment = Originating customer is eligible to receive
compensation at current repo rate + 2%.
RTGS Txn a) R-41 (Customer to Customer)
Types b) R-42 (Bank to Bank)

NEFT Online Channel

Upto 10,000/- 2/- + GST
Rs.10,000/- to 1 4/- + GST
lac --Nil--

Rs.1 lakh to 2 12/- + GST

Service lacs
Charge
Above 2 lacs 20/- + GST
RTGS Online Channel
2 lacs to 5 lacs 20/- + GST --Nil--
Above 5 lacs 40/- + GST

Different NEFT is an electronic fund transfer system that operates on a

between Deferred Net Settlement (DNS) basis which settles transactions in
RTGS batches. In DNS, the settlement takes place with all transactions
& NEFT received till the cut-off time. RTGS the transactions are settled
individually.
Amount RTGS Minimum = 2 lakh. No upper ceiling for RTGS
• Indian Financial System Code- It is an alphanumeric code
allotted to all RTGS/NEFT enabled branches. It is of 11
IFSC
characters.
• In our Bank, IFSC is designed as SBIN000BBBB
Immediate Payment Services (IMPS)
IMPS provides robust & real-time fund transfer which offers an instant, 24X7,
interbank electronic fund transfer service that could be accessed on multiple
channels like Mobile, Internet, ATM, SMS. IMPS is an emphatic service that allows
transferring of funds instantly within banks across India which is not only safe but
also economical. Currently, on IMPS, 639 members are live which includes banks
& PPIs. This facility is provided by NPCI through its existing NFS switch.
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• Instant remittance of funds to the beneficiary account

Advantages • Available on weekends through select Branches operational
on weekends.
• Immediate Payment Service (IMPS) is an instant real-time
interbank electronic funds transfer system in India
• IMPS is offered to vide Mobile banking Channel, INB Channel
& Branch channel.
• Types of transfers allowed through Branch channel = P2A
(Person to Account), by providing Beneficiary IFSC Code and
Account no.
Features • The Beneficiary bank should be enabled with NPCI to receive
IMPS transfer.
• The customer needs to have a bank account with the bank
which has enabled this facility.
• 24*7 facility on digital channels and functional during banking
hours even on banking holidays through select branches.
• Can be initiated from Mobile/ Internet / Branch channels.
• Debit & Credit Confirmation by SMS.
• Minimum = Rs.1
• Maximum = Rs. 2 lakhs,
Amount limit
• IMPS outward transactions are allowed to transfer collective
amount of Rs = 2 lac/per day.

Beneficiary i) Name of the beneficiary ii) Account Number of the beneficiary iii)
details IFS Code of the beneficiary bank

Reversal Reversal of the remitter’s funds will happen immediately and max 7
days.

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Virtual Account Number (VAN)

Virtual Account Number is a functionality for the Corporates to create a unique
alphanumeric name or code for their actual account number in the bank. This
unique Code will be mapped to the actual account number of the Corporate by
which customer will not have to share their account details with their stakeholders
(customers, vendors, dealers, and distributors etc.). Payer will use this VAN for
payment through Digital Banking channels of SBI and using NEFT/RTGS services
of other Banks. Further, the USP of the VAN is Corporates will be provided
adequate MIS in real-time for all the payments received through VAN.

Structure of VAN
• VAN is structured in 2 parts:
• ‘6-character unique Corporate identifier’ (Short VAN) + ‘1-17 Character
dealer/customer identifier of Corporate’
• The total length of VAN can be up to 23 characters.
• Once activated the VAN acts as the Beneficiary Account Number. The remitter
of funds must enter the VAN in place of beneficiary account number and all
other fields.
• The first 6 characters of the VAN (Short VAN) must be unique for each client
and are alphanumeric with a minimum of 1 alphabet (in Upper case).
• The remaining 1-17 characters of the VAN serve the purpose of MIS relating
to the Remitter of funds and is vital information for the Client.

VAN payments in RINB consists of two sections:

• Addition of VAN Beneficiary &
• Funds Transfer/Payment to VAN Beneficiary
Modes of Payment to VAN: RINB, CINB, NEFT, RTGS, SBI, Cheque

PRICING FOR VIRTUAL ACCOUNT NUMBER (VAN) CASH AND CLEARING

Sr. D&TB D&TB PROPOSED PRICING
No. SOLUTIONS Solutions
SUBPARAMETER
1 Virtual Account Cash Deposition Rs.2/1000 Min 20/-per
Number (VAN) - (Direct Cash transaction.
Cash Deposition by Clients)

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2 Virtual Account Cash Collection - • Rs.1.50 / 1000 up to 4.00 Lac.

Number (VAN) Cash Pick-up by • Rs.1.25 / 1000 Above 4.00
Cash Agency Lac -Rs.10.00 Lac
• Rs.1.00 / 1000 Above 10.00
Lac
• PLUS Agency Charges at
actuals
3 Virtual Account SBI Cheques Rs. 0.02 / 1000 Min. 5/- per
Number (VAN) - instrument.
Clearing
4 Virtual Account CTS -Cheques Rs. 0.04 per 1000 Minimum
Number (VAN) - (Clear Funds) - 10/- per Rs. instrument
Clearing
5 Virtual Account Outstation Cheques Rs.100/- per instrument
Number (VAN) -
Clearing
6 Cheque Return Local Clearing and Rs.150/- per cheque for
Charges deposited Outstation collections cheque amount up to 25,000/-
for credit of VAN – All locations and
account Rs. Rs. 250/-per cheque for
cheque amount more than
25,000/-
6A For cheques drawn Rs.150/- per cheque for
on us returned for cheque amount up to 25,000/-
technical reasons and
(not to be charged Rs. Rs. 250/-per cheque for
where customer is cheque amount more than
not at fault as per RBI 25,000/-
guidelines)

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NATIONAL UNIFIED USSD PLATFORM (NUUP) – *99# SERVICE

• USSD service launched by NPCI.
• NUUP is also known as *99# service. *99# is a USSD (Unstructured
Supplementary Service Data).
• Using *99# service, a customer can access financial services by dialling *99#
from his/her mobile registered with the bank. The service works across all
GSM service providers and handsets.
• Accessed in 13 different languages including Hindi & English.
• 99# service is a unique interoperable direct to consumer service that brings
together the diverse ecosystem partners such as Banks & TSPs (Telecom
Service Providers).
USSD Unstructured Supplementary Service Data (USSD)
• The facility To Avail banking services without internet and smartphone
• *99#, a USSD based mobile banking service of NPCI.
• Service available: Instant money transfer using MMID/IFSC, Mini statement,
Account balance, Generate/change MPIN,
• Show MMID & Generate OTP

State Bank Collect

• State Bank Collect’ facilitates our Corporate Internet Banking (CINB)
customers to receive online payments from receivers of their goods &
services.
• Its facilities CINB customers to receive online payment from receivers of their
goods & services. CINB customer need not maintain a website. Payer of the
corporate has to just click on ‘State Bank Collect’ tab at the home page of
SBI net banking and choose the Corporate for which payment has to be
maybe, fill up particulars of goods/services towards which payment has to
be made and make the payment through one of the several options
displayed to him on a Multiple Option Payment System (MOPS) page. The
corporate customer will get MIS reports of SB collect transactions through
CINB interface.

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Mode of payment option

• SBI Internet Banking
• Other bank’s internet banking
• SBI ATM cum Debit card
• Other bank’s ATM cum Debit Card
• All bank Credit card
• NEFT/RTGS
• UPI
• Off-line collection at SBI Branch through SBI Cheque/cash
How to avail facility
• The corporate customers desire of availing the ‘State Bank Collect’ facility
should be registered for CINB with Khata plus/Vyapaar/Vistaar facility. In
post-login, the CINB administrator of the firm has to go to State Bank Collect
tab and configure page for State Bank Collect for their Corporate/Institution
which will be subsequently approved by the Bank.
• OD accounts are not enabled for this facility.
• Further, accounts opened with Power Jyoti product codes (5091****) should
not be enabled for this facility.

SBI e-PAY
• SBI E-PAY is the aggregator service by State Bank of India which provides
electronic connectivity with various Banks and financial institutions on the
one hand and merchants on the other, thus facilitating e-Commerce/m-
Commerce transactions between merchants, customers, and various
financial institutions for all kinds of payments
• This initiative will go a long way in providing payment facilities to a large
number of customers performing online transactions towards Govt. dues and
e-commerce transactions through the following channels:
1.Internet Banking
2.Debit cards: All banks
3.Credit cards
4.IMPS: All banks
5.Cash challan
6.NEFT/RTGS
7.UPI
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e-Payment for e-freight

It is an online payment system to enable instant debit and credit for freight
movement transactions so that upon confirmation of such payment at loading
points, Railway Receipts can be issued.
Advantage to Bank:
• Online collection of railway freight.
• Facility available 24X7.
• Enhance the customer convenience transparency & real-time credit to
railway accounts.
• Acquiring of new SME customers.
• Increase in CASA deposits.
• Fee income (charges Rs.100/- per transaction to be recovered from
corporates).
E-freight integration:

• FOIS - Freight Operation Information System

• CRIS - Centre for Railway Information System Functional at 200 out of 500
loading points
• INB – SBI Internet Banking
e-Handshake
Integration of Govt./Corp. site with our INB site and/or Payment Gateway (PG) or
SB-MOPS for collections towards e-Tendering, e-Auction, Taxes, Educational
Fee, Online Sales, Recruitment Fees etc. for efficient delivery of collected funds
as also MIS to the (integrated) corporate client. Direct integration requests are
entertained from Govt. Depts./PSUs/Aggregators / Large institutions and
Corporates of repute, expecting substantial online transactions.
Benefits of e-Handshake
• Transparent and efficient processes.
• Access to real-time information.
• Reduces cost of publication of paper brochures.
• Eliminates cost of manual handling and record-keeping of STDRs/ drafts
/cheques etc.
• Process is controlled by the concerned PSU and is subject to rules framed
by them which are agreed to by all participating parties.

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E-Tendering Solution

E-Tendering is the carrying out of the tendering process using electronic means,
such as the internet and specialized e-tendering software applications. It is the
Government-to-business, business-to-business or business-to-consumer purchase
and sale of supplies, works, and services through the Internet as well as exchange
of other information through Electronic Data Interchange.
Benefits for Tender inviting agencies
• Transparent and efficient.
• IT-friendly and innovative.
• Reduction in costs for Bank, Bidders and Tender Floating agencies.
• Access to real-time information.
• Elimination of hassles associated with publishing of tenders.
• A new customer-friendly feature for our Internet Banking users.

For Bidders
• Online payment of Tender fee & EMD amount.
• Online refund for unsuccessful bids.
• Transparent system.
• Easy refund.
• Timesaving
• For support: etender.support@sbi.co.in

State Bank Secure OTP

State Bank Secure OTP is an OTP generation App for verifying transactions done
through State Bank Internet Banking and YONO Lite App. It is a service provider-
independent, hassle-free OTP service which replaces the need for receiving the
OTP for INB transactions via SMS.
Features
• OTP can be generated in a mobile app (can be locked by pin)
• Online OTP: Internet connection (via SIM or Wi-Fi) is required for generating
OTP.
• Platform available on Android, Blackberry, Windows and IOS.

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National Automated Clearing House (NACH) Mandates

Collection of funds electronically through NACH by Mandate based registration for
debiting the Customer’s account.
Previously, Banks used to obtain Mandates in different formats as per their
specifications. But, NACH has introduced a universal format for obtaining mandate
from customers for all the banks. The following are the important part of the
universal form introduced by NACH.
a UMRN: Unique Mandate Reference Number which will be allotted to a
customer once and all his mandates will be registered under the same UMR
number if a customer initially gives mandate for LIC policy, he will be allotted
with UMR number and later if he wishes to give another mandate for SIP MF
then the same UMRN will be allotted for the 2nd one also
b Utility Code: Banks are having different products varying from LIC,
MF, HL, VL, etc& each Bank/company will be having different utility codes for
them.
c Sponsor Bank: The Bank with which the company maintains its
account and requests for processing the mandates of its clients is called
Sponsor Bank.
d Destination Bank: It is the Bank with which the customer maintains its
account & gives mandate for debiting the account.
Features/Benefits to Client
• For Collection of invoice payment from Dealers, SIP/ Premium, EMI etc.
• Elimination of collection through physical Cash/Cheque
• Mandate of Account holders is required, which will be validated by us.
• MIS report for Mandate Verification is also sent to the customer.
• Reverse MIS report will be provided to the client immediately after
processing the transactions.
• Dedicated Client Services Team for faster Query resolutions.
• Email/SMS alerts to the Customers of the client on successful
registration/confirmation of mandate
• Nodal Branch for entire bank to handle NACH Transaction is: CCPC,
Mumbai

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A centralised clearing system was launched by NPCI. It replaces and consolidates

existing ECS systems across India and create a faster and more efficient clearing
platform.
Benefits of NACH
• Standardisation and digitalisation of mandate
• Reduction of operational cost
• Minimisation of ECS activation time
• Reduce the turnaround time of ECS processing

Difference between NACH and ECS

NACH ECS
Standard and digitalised mandate form Physical form
Unique mandate registration reference No such concept
number will be allotted
Will be processed in T+1 day Usually takes T+3 or more
Dispute management system No such concept

Swayam
Customer Self-service barcode-based passbook printer is Swayam
Height and Width of the passbook used for SWAYAM
Height: 18 cm Width: 20.5 cm
should be
Regional Stationary Department
Who provides the bar Code stickers to the branch
through i-STAM
CBS Screen used for linking bar code stickers to
7104
SWAYAM
Name of the vendor which provides SWAYAM Lipi and Forbes
Saving Recurring Deposits
Public Provident Fund
On which accounts, passbook can be printed by using
SWAYAM

Digital Life Certificate

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• Government of India has launched “Jeevan Praman”, an Aadhaar based Digital Life
Certificate submission platform for pensioners.
• This is an additional facility to the existing system of physical submission of life
certificates.
• Digital Life Certificate submission provides for biometric authentication by the
pensioner from remote point.
• Digital Life Certificates are maintained in digital repository in National Informatics
Center (NIC).
• Pensioners drawing pension from various branches are required to furnish a Life
Certificate in November every year.
• Senior citizens of the age of 80 and above are now allowed to submit a Life
Certificate w.e.f. 1st October every year instead of November, which would be valid
till 30th November next year.
• Officers of RBI/Public Sector Banks are authorised to give these Life Certificates.
• Authorised officials of the Indian Embassy/High Commission of India/Consul of
Indian Consulates/Notary Public/Indian PSB (attached branch where the pensioner
resides) can issue Life Certificate to NRI Pensioners.
Limits of All Variants of Debit Cards at ATM / POS / E-Commerce

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Debit Card Variants Criteria & Eligibility

Variant Criteria
Classic (M/R/V) all customers unless customer requests for issuance of an
International Debit Card.
Global (M/V) customers who request for issuance of a basic International Debit
Card
Gold (M/V) (AQB >= Rs. 50,000/- OR Deposits >= Rs. 5 Lakhs but < Rs. 10
Lakhs OR Home Loan limit of >= Rs. 10 Lakhs < 20 Lakhs OR
Car Loan of > = Rs. 3 Lakhs < Rs. 5 Lakhs)
Platinum (M/V) (AQB >= Rs. 1 Lakh OR Deposits >= Rs. 10 Lakhs OR Home
Loan limit of >= Rs. 20 Lakhs OR Car Loan of > = Rs. 5 Lakhs)
Platinum (R) (AQB >= 0.50 Lakh OR Depositors having deposit of >= 5 Lakhs
OR Home loan borrowers having limit of >= 10 Lakhs OR Car
loan borrowers having limit of >= 3 Lakhs
Pride (M/V) all non-personal current account holder OR non-personal account
holder with loan limits of > = Rs. 1 Lakh < INR 25 Lakh.
Premium (M/V) all non-personal current account holder with balances of > = Rs. 5
Lakh OR non-personal account holder with Loan limits of > = INR
25 Lakh
Signature (V) SBI wealth customers, who are ultra HNI clients
Contactless customer has an active savings account (except PMJDY & other
(M/R/V) scheme) who requests for issuance of Contactless Debit Card.
*M-Master, R-Rupay, V-Visa
• Card replacement charges = 300+GST
• No charges for Salary Package account
Insurance Coverage: SBI Debit card
• The Insurance Coverage on SBI Debit Cards includes cover under Personal Accidental
Insurance (PAI) with add on cover with a Maximum Insurance coverage of Rs.20 Lakh plus
add on coverage of Rs.75000/- for all variants.
• Additional Purchase Protection Cover of Rs.200000/- is available for Salary Package account
holders of all MasterCard/VISA variants.
• Accidental Death or Permanent Total Disability Insurance Coverage of Rs.200000/- is offered
by NPCI on RuPay Platinum/Premium Debit Cards and for PMJDY SBI Debit Cards.

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Variant Non-AIR AIR accidental death Purchase

acid. death Protectio
n Cover
Gold (Master/Visa) Rs. 2 Lakh Rs. 4 Lakh Rs.
5000.00
Yuva (Visa) Rs. 2 Lakh Rs. 4 Lakh Rs.
5000.00
Pride (Business Debit) (Master/Visa) Rs. 2 Lakh Rs. 4 Lakh Rs.
5000.00
Platinum (Master/Visa) Rs. 5 Lakh Rs. 10 Lakh Rs.
50000.00
Premium (Business Debit) Rs. 5 Lakh Rs. 10 Lakh Rs.
(Mast/Visa) 50000.00
Visa Signature Debit Card Rs. 10 Lakh Rs. 20 Lakh Rs.
100000.0
0
SBI RUPAY DEBIT CARD HOLDER
Variant Minimum one successful Financial or Non-
Financial
Transaction at any channel both Intra and Inter-
Bank within
SBI RuPay Platinum/Premium Debit Card: 2 Lakh 45 days prior to date of accident
PMJDY Debit Cards issued till 28-Aug-18: Rs. 1 90 days
Lakh
PMJDY Debit Cards issued after 28-Aug-18: Rs. 2
Lakh

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a PAI (Death) Non-Air: when the Card is used at least once on any channel, viz ATM/
PoS /eCom during the last 90 days (Financial / Non-financial transaction) from the date of
accident.
b Personal Air Accidental Insurance (Death): when the Card is used at least once on
any channel, viz ATM/PoS/eCom during the last 90 days (Financial / Non-financial transaction)
from the date of accident, subject to a condition that the air ticket for that air travel should have
been purchased by using the Debit Card.
c Add on Cover: Family Transportation & Transportation of Mortal Remains= 50,000/-
Checked in Baggage Loss = 25,000/-

• Insurance Company for Visa/Master: National Insurance Company Ltd.

• Insurance Company for Rupay: New India Assurance Co. Ltd.
• Purchase Protection: This policy covers loss of goods/articles purchased (excluding
perishables, jewellery, precious stones) due to theft/burglary/housebreaking, including theft
from vehicle, within 90 days of purchase of such goods. The goods must have been purchased
by using the eligible Debit Card variants at Point of Sale/Merchant establishments.
• Purchase Protection Cover for Salary Package Accountholders (all Master/Maestro/VISA
variants: 2,00,000/-.

Prepaid Cards
Card Type Min Max Validity Other Features
• Cash Withdrawal is not allowed.
• In association with VISA.
• Add-on-cards not exceeding two
in number to be used by the
cardholder in case of
Achiever 2 loss/misplacement/defacement
100 10 Yr.
Card Lakh of the card. (Any no. of reloading
allowed)
• Card Issuance fee Rs. 100 +
GST.
• Reload fee Rs. 10 + GST (free if
INB)

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• Cash Withdrawal is not allowed.

• In association with VISA
• For default Image Gift Card, If the
Gift Card is not topped up within
One Month from the date of
Gift Card issuance, a charge of Rs.120 will
(Issuance be recovered from your account.
&replacement 500 50K 3 Yr. • For Image-Based Gift cards (for
charge: Rs. the specific occasion), an
100) issuance Fee of Rs.105+GST
will be debited from your account
at the time of card order.
• Rs.105+GST (as applicable)
• Single load
• Active gift card – min-1, max-10
• Purpose: For payment of
Government disbursements like
Scholarships, social benefits like
NREGA, Anganwadi staff salary,
old age pension, Wages /
Bonus/incentives to employees,
Periodical payment of incentives
to agents/commission to
distributors & Remittances
2
e-Z Pay Card 100 10 Yr. received from abroad. ➢ ATM
Lakh
Usage Charge: Withdrawal (Rs.
20/-) & Balance Enquiry (Rs. 9/-)
➢ For the card no need to be a
SBI account holder.
• Minimum reload Rs.100 per
reload No Maximum stipulation.
• Maximum Amount that can be
loaded by paying Cash is limited
to Rs.50,000/- per month.

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• For Railway Employees

• Cash withdrawal at any SBI
ATMs (free of charge) and a
2 charge of Rs 20/- at other Bank’s
Imprest Card 100 10 Yr.
Lakh ATMs.
• Cash withdrawal from State
Bank ATMs – Min-Rs.100, Max-
Rs. 40000/- per day.
• No restriction on No. of Cards
• In association with VISA
48 Hr or
• All INB Customers with
Virtual Card 100 50000 Txn
Transaction Rights having PAN
occurs
registered with the
• Bank can avail this facility
• Validity 5 Yr.
• Can be issued in 8 currencies (USD, GBP, EURO, CAD,
AUD, JPY, SAR & SGD)
• Maximum 2 (Two) Add-on cards can be issued. (Charges:
- Rs. 100 + GST for each)
• Reload fee: Rs. 50 + GST
• No fee will be charged if the balance amount is claimed
Foreign within 3 months of the expiry of the card
Travel • Maximum amount per transaction: ATM ($3000), POS
($5000), E-com ($5000)
• Maximum No. of Transactions in 24 hours: ATM (3 Txn),
POS (5 Txn), E-com (3 Txn)
• It cannot be used in India, Bhutan & Nepal.
• If any reversal of amount is required; it will be reversed and
credited to the Card Account within a maximum period of
60 days.
• Maximum Value of each Staff Achiever card at any point of
time should not exceed 1 Lakh. ➢ Only one staff Achiever
Staff Achiever
card to be issued per PF Index number Employees who
Card
have been issued with multiple cards, blocking of all cards
with zero balance.

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• For cards issued to employees having a balance above 1

Lakh (including multiple issuances) further, top-up stopped
into the cards.

• Daily Txn limit per card = US$ 1000/- each for merchant
Txn& ATMs
International • Max withdrawal at Merchant Establishments & ATMs on a
Debit day = US$ 2000/- ➢ No monetary ceiling on spending
Card through International Debit Card.
• Not exceed exchange entitlements of the person under
extant FEMA guidelines
• MAHE Card (exclusively for Manipal University
Issuance of students/employees)
ATM • ARMY Card (exclusively for Army personnel)
Photo Card • IIM-L (exclusively for Indian Institute of Management,
Lucknow) ➢Pehla Kadam, PehliUdan etc.
Undrawn amount after expiry of the
prepaid card, If unclaimed for more than
…. the amount has to be credited to the 10 Yr.
DEAF account of RBI within a period of 3
months from the expiry of said 10 years.
Monthly ceiling on limit of cash loading to
50000/-
Pre-Paid Instruments.
Time frame for maintenance of log of all
the transactions undertaken using Pre- 10 Yr.
Paid Instruments.
Cross Border outward transaction facility
has to be enabled with per transaction
limit up to Rs ____/- and per month limit
Per Transaction limit
up to Rs ____/-only on explicit request of
• 10000/- & Per Month Limit 50000/-
the PPI holders and for such transactions
the card should be EMV Chip and PIN
compliant.

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Green PIN Generation

• SMS PIN<space>CCCC<space>AAAA to 567676 from
registered mobile number where CCCC is last four digits of
Debit Card number & AAAA is last four digits of a/c number.
SMS channel • One Time PIN (OTP) will be sent on registered mobile
number, valid for 2 days.
• Create a new PIN using OTP at any State Bank ATM
(Banking > PIN Change).
• Log in to https://www.onlinesbi.com/.
• Select e-Services >> ATM Card Services >> ATM PIN
Generation.
• Use One Time Password or profile password for
authentication.
• Select the account number to which the Debit Card is
linked.
INB channel • Select the Debit Card for which you wish to create/change
the PIN.
• Enter first 2 digits of the PIN as per your choice and the last
two digits of the PIN will be sent on the registered mobile
number.
• Enter all the four digits (i.e., the first two-digit self-chosen
and the 2 digits sent to registered mobile number) and
confirm.
• Call the Bank’s Contact Centre (1800 425 3800/ 1800 1122
11/080-26599990) from registered mobile number.
• Enter full Card number and account number.
IVRS channel • One Time PIN (OTP) will be sent on registered mobile
number. OTP is valid for 2 days.
• Create a new PIN using OTP at any State Bank ATM
(Banking > PIN Change).

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• Insert the State Bank Debit Card at any State Bank Group
ATM.
• Select “PIN Generation” option on the ATM screen.
• Enter 11-digit account number and confirm.
• Enter 10 digit registered mobile number and confirm.
ATM channel • A message is displayed on the ATM screen that the PIN
shall be received on the registered mobile number. Confirm
the same. Upon confirmation, One Time PIN (OTP) will be
sent on registered mobile number. OTP valid for 2 days.
• Create new PIN using OTP at any State Bank ATM
(Banking > PIN Change)
SBI Quick app • Open the SBI Quick App and click on ATM cum Debit Card
option>> Generate Green PIN>> Enter last 4 digits of Debit
Card & Enter last 4 digits of Account Number.
• One successful PIN-based transaction at any State Bank
Group ATM i.e., prior activation was required for making
transactions at any other Bank’s ATM, for making purchase
transactions at merchant establishments (PoS), for online
transactions, etc.
Activation
• Through internet banking (https://www.onlinesbi.com/ >> e-
Procedure
Services >> ATM Card Services >> New ATM Card
Activation).
• Through any PIN-based Card Present Transaction i.e., at
any PoS terminal, any ATM or other channels like Self
Service Kiosks, Green Channel Counter, etc.
Un-Blocking • De-hotlist/unblock the Card through Branch’s interface on
of Debit a real-time basis.
Cards at • The process follows the Maker and Checker principle.
Branches • The Cardholders can request at any Branch i.e., at either
through home or non-home Branches over the counter by giving a
INB Interface written request.

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Cash Deposit Machine (CDM) CUM Automated Deposit and Withdrawal

Machine (ADWM)
• Maximum pieces at any one instance = 200.
• Maximum deposit per Txn = 2 Lakh.
• Deposit limit Per transaction limit in Cardless/Debit Card (third party account)
=49900/-
• Deposit limit GRC linked accounts =25000/- (monthly 100000/-)
• Cash can be deposited in Loan, PPF and RD accounts.
• In addition to cash deposit transactions, other functions like Balance Enquiry,
Mini Statement and PIN Change are also available in CDM
• The notes belonging to the Suspect / Counterfeit notes are retracted and
held into a separate box maintained for the purpose called Upper Reject Box
(URJB).

Green Remit Card

• A non-personal card to facilitate non-home cash remitters.
• May be used at GCC counters and CDMs.
• Issuance on the basis of one photo and an ID proof.
• Maximum limit per transaction = 25000/-.
• Maximum limit per month = 1,00,000/-.
• Validity = 10 Years
• Mini statement generated through ATM can have 10 number of transactions

ATM Transaction
• On Us transactions mean both Issuing Bank and Acquiring Bank are same.
For SBI, our customer is using our bank card in our ATMs.
• Off US transactions mean those transactions were Issuing Bank and
Acquiring Bank are different. For SBI, our customers are using other Bank
ATMs.
• NOT ON US transactions: These are nothing but OFF US transactions but,
in this case, SBI ATM is used by non-SBI customers.

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Transaction Customer Bank ATM/CDM/Recyclers

Type
On Us SBI SBI
Not on Us other than SBI SBI
Off Us SBI other than SBI
ATM iALERTS https://atmialerts.onlinesbi.com:7002/Home/ATMWebHome
Terminal Master Keys (TMK):
• Branch has to obtain 2 TMKs (ATM specific) from ASC which are essentially
alphanumeric codes (32 Digit) that have to be input into the ATM for making
it live.
• These have to be entered in the Branch Documents Register.
• TMK1 and TMK2 are to be kept in the custody of two different officials.
Admin Card
• Single Admin Card can be used, for accessing different ATMs of the branch.
• Details of Admin Cards and its PIN Mailers have to be entered in the Branch
Documents Register.
• Admin Card is used in the ATM for reporting details of Cash Replenishment
directly to ASC.
• Hood Key: It is used to access the inside of an ATM. This key is to be kept
in the custody of one of the joint custodians, preferably the custodian
handling the Admin Function.
ATM Safe Keys
• The safe can be accessed only after the hood is opened. The safe door has
a combination lock. Each joint custodian holds one key or combination.
• Combination Keys (passwords) are used by the joint custodians and are to
be kept in sealed covers, duly recorded in the Branch Documents Register
for use in case of emergency due to the absence of any of the joint
custodians.
• The joint custodians have to invariably change the combination key once in
30 days.

Customer Relationship Management (CRM): - it is an approach to managing a

company's interaction with the current and potential customers and analysing data
about customers' history with a company.
URL: https://crm.sbi.co.in
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also, login from https://info.sbi--> CRM APPLICATION. It’s based on SSO (Single
Sign-on)
1 CRM Lead Module: Comprises Lead generation,
assignment and follow up.
2 Sales Module: Comprises Lead & Opportunity
Management, Account Management, Performance
Management, Contact Management, Distributor Management,
etc.
3 Service Module: Comprises Contact Centre
Management, Customer Service (QRC - Query, Request,
Modules in
Complaint) Management, Communication Management, etc.
CRM
4 Marketing Module: Comprises Marketing
Management, Campaign Creation, Execution & Management,
Campaign Response & Analysis, etc.

Apart from the above three Modules, CRM will also enable an
omnichannel and seamless experience for customers and ensure
continuity of context in their various interactions with the Bank. It will
also provide a complete view of customers through Customer 360.
• Initiate
• Approval
Stages in the
• Qualify
life cycle of a
• Process
lead
• Fulfil
• Disqualify/Close
Hot Lead - Customer interest level is “High
Warm Lead - Customer interest level is “Medium
Cold Lead - Customer interest level is “Low

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Work with the Customer 360ᵒ Page:

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Milestones and their Status Codes

E-KYC AND CKYC

E-KYC is the way of resident authentication used by Banks to open accounts by
using an Aadhar number. Aadhar allows the residents to submit it as Identity
proof and address [roof electronically which is equivalent to Xerox copy of
Aadhar Card.

There are 5 procedures to invoke e-KYC certificate viz.,

1. By biometric authentication in CBS,
2. By entering OTP received by the customer,
3. By giving biometric authentication at CSPs,
4. In Project lotus giving biometric authentication in self-assist Mode and
5. In project lotus giving biometric authentication in Branch Assist Mode.

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CKYCR:(Central Know Your Customer Registry)

• Central Registry of Securitization, Asset Reconstruction and Security
Interest of India (CERSAI) has been notified to act as an entity to perform
the functions of the CKYCR.
• Bank is required to file the electronic copy of the Customer’s KYC
records/data (Customer information, Photograph, Signature, KYC
Documents) with the Central KYC Records Registry (CKYCR) within 3
days after the commencement of an account-based relationship with a
customer.
• Account-based relationship includes all types of Deposit accounts having
full KYC, Simplified KYC, etc., opened at Branches or through other
channels/platforms, Loan accounts, non-fund-based accounts like Bank
Guarantee, Letter of Credit, etc. in respect of both Individual and Entity
(Non-Individual).

URL for CKYC Interface for LCPC is https://sbickyc.sbi/CKYC.

• One finger(s) biometric authentication will be captured while opening the

accounts in CBS.
• Rs. 1.00 lacs are the aggregate Balance to be maintained when accounts
are opened with the help of OTP.
• Within 12 months of account opening through OTP, biometric
authentication has to be completed.
• The main objective for enrolling e-KYC at CSPs is for credit of Direct
Benefit Transfer amounts.
• The mode of operation opened in Digital Savings Account in Project Lotus
is Single only as accounts are not opened in joint names.

Internet Banking
Introduced in July 2001 through its portal www.onlinesbi.com
Retail Retail Internet Banking (RINB) for ‘P’ segment customers including
customers NRI customers
Corporate Corporate Internet Banking (CINB) for SME customers having
Customers business accounts with the Bank.

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• All individual customers satisfy Bank’s KYC norms.

• Minors, (Pehla Kadam/Pehli Udaan).
• Minor accounts opened under product codes other than
PK/PU can also be provided INB facility with View/Limited
Transaction rights as opted by the account holder.
• Joint Accounts with operational instructions as ‘Either or
Survivor’ or ‘Anyone or Survivor’ or ‘Former or Survivor’ or
Eligibility
‘Latter or Survivor’ are eligible for INB facility.
(RINB)
• PMJDY accounts opened under BSBDA (Basic Savings
Bank Deposit Account) are also eligible for Internet Banking
facility.
• Power of Attorney (PoA) holders provided the PoA
specifically authorizes the agent to operate the bank account
through internet banking.
• Visually Challenged
• Savings Bank (Including NRE), Savings Bank plus, Current
Types of a/c Account, Current Account (Overdraft), Maxgain Accounts,
eligible Term Loan account, Demand Loan account, PPF account,
Term Deposit accounts such as TDR, STDR, MODs and RD.

• Jointly operated accounts are not eligible for INB facility.

Not eligible
• Illiterate customer
• Three types of user rights facility are available under RINB:
i) View rights only, ii) View and transaction rights, iii) Limited
transactions rights
Transaction • Under Limited Transaction Rights, Customer can use
rights following features of INB: i) Fund’s transfer within his/her
own accounts ii) Opening of new deposit accounts under e-
TDR/e-STDR scheme iii) Request for opening new
accounts under the same CIF through branch intervention
• Site is verified by VeriSign & Secured by 256-bit encryption
• Site is maintained by Tech Mahindra
Others • URL Address for Branch login: http://192.168.25.52
Restricting issuance of INB to Illiterate: Select option “99:
Illiterate” in the ‘Education Code’

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Corporate Internet Banking (CINB)

Variants Five - Khata, Khata Plus, Saral, Vyapar & Vistaar.
• Single user enquiry product meant for small firms or
institutions who maintain accounts with only one branch
Khata of SBI and who wish to do only online enquiry and
downloading of account statements. ➢Online
transactions are not allowed in this product.
• Multi-user enquiry product meant for slightly larger firms
or institutions banking with multiple branches of SBI.
Khata Plus This provides enquiry facility to multiple users of the
organization.
• Online transactions are not allowed in this product either.
• This is a simplified single user transactional product
ideally suited for sole proprietorship concerns, micro-
enterprises or individual businessmen who require
online transaction facility in their business accounts.
Saral • The product provides transaction rights to the user
involving transfer of funds to own or third party accounts
up to a limit of Rs.25 lakhs per day.
• Both within SBI and other bank transactions are
supported.
SBI accounts (other than your own accounts) 25 Lakh per
day
SBI own accounts (same CIF) 2 Cr. per day
Fund DD issue and Bill Payment 5 lac per day
transfer limit RTGS/NEFT (inclusive of IMPS transaction 25 Lakh
SARAL limit upto Rs.2 Lac)
Merchant Payments 25 Lakh per
day
State Bank collect payment 10 Lac per day

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Supplier payment 25 lac per day

Facility to participate in e-auction for 1 Crore per
government departments day
Government/ Tax transactions 2 Cr
Facility to make payments to govt. and semi-
govt. institutions including taxes, statutory
2 Cr per day
dues such as ESIC, EPF, including OLTAS,
CBEC and ICEGATE
• ➢Multi-user transactional product meant for small and
medium enterprises and organisations maintaining accounts
with a single branch of SBI and who wish to provide
discretionary access/ transaction rights to their users.
• Vyapaar • Maximum amount that can be • 50
transferred (per transaction) Lac
• Government / Tax transactions • 2 Cr
• ➢There will not be any ceiling on the number of
transactions per day
• This is a complete internet banking suite for large and
very large corporate, Government organizations and
Institutions.
• The facility enables multiple users to have discretionary
access/transaction rights across accounts with various
branches.
Vistaar
Maximum amount that can be transferred 2,000 Cr
(per transaction)
Government/ Tax transactions 10,000 Cr
• ➢There will not be any ceiling on the number of
transactions per day.
Various role • Regulator - is unique to Vistaar facility. He is the
holders in executive controller of the Corporate. He defines the overall
profile of the corporate in CINB. He cannot view or transact
on any account in CINB.

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the multi • Administrator - Role of Administrator is mandatory in

user products Khata Plus, Vyapaar and Vistaar. He exercises
Khata Plus, management control. He creates the other users and
Vyapaar and provides them access rights to the corporate accounts. He
Vistaar also defines their financial powers to transact on these
accounts.
• Enquirer - He can only view and download statements
of the accounts mapped to him by the Administrator.
• Maker - He is the creator of the transaction. Role
applicable to Vyapaar and Vistaar.
• Authorizer - He authorizes transactions created by the
maker. His authorisation rights are defined by the
Administrator. This role is again applicable to Vyapaar and
Vistaar.
• Uploader - This is an optional role in Vyapaar and
Vistaar. He uploads files containing bulk transaction is a pre-
defined file structure.
• Auditor - This is an optional role in Vistaar. He takes a
second look at the transactions and audits them post facto.
• Approver - This again is an optional role in Vistaar.
Approver checks the transaction before authorisation.
• Super Enquirer - He has rights to enquire any account
of the corporate maintained at any branch. This role is also
optional.
• The Branch will create a Corporate ID and provide User
ID and password for the following corporate role holders.
Roles to be
• Khata and Saral = User
created by the
• Vyapaar and Khata Plus = Administrator
branch
• Vistaar = Regulator and Administrator
• GINB = Regulator, Administrator & User
CINB Forms
C-1 Registration Form
C-2 Registration of Regulator (for Vistaar only)
C-3 Registration of Administrator
C-4 Terms and Conditions
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C-5 Board of Resolution

C-6 CINB User Manual Form
C-7 User Registration
C-8 Acknowledgement of Receipt of PPK
C-9 Mobile Registration

MICROSOFT OFFICE 365

• Office 365 also known as Microsoft 365, is a bundle of software comprising
the following types of applications released by Microsoft. It connects employees
to the people, information, and content they need to do their best work, from any
device. SBI has migrated to Office365 in 2017.
• Available list of collaboration tools includes OneDrive for Business,
SharePoint Online, Microsoft Teams, Outlook Online, Delve, Dynamics 365 etc.
SBI has categorized its Office 365 users into 4 different profiles
E3 Profile • Covers name-based email Ids of Chief Managers and
above and designation-based email Ids of DGMs and above
• E3 Profile users are eligible for 15 Office 365 licences.
• They can install software in 5 Laptops or Desktops, 5
Tabs and in 5 Mobile Phones
• Are eligible for both Outlook Client and Outlook Web
Application.
F3 Profile • All permanent officers of Scale I, II & III, and clerical.
• Can access all Office365 cloud-based services
including Microsoft Office Suit online (Word, MS Excel, and
PowerPoint) through web browser
• Access their emails using Outlook Web Access only
(Browser-Based).
K1 Profile • Can access few Office365 cloud bases services and
they are not eligible to access Microsoft Office Suit online
(Word, MS Excel, and PowerPoint).
• Access their emails using Outlook Web Access only
(Browser-Based).

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Profile Mailbox OneDrive Microsoft Office

Profile
Name size Size Teams applications
Kiosk Vendor,
license 2GB NA generic mail NA Web
(K1) id's
F3 Scale 1 - 3
2GB 2 GB Yes Web
license and Clerical
E3 scale 4 and
99 GB 1TB Yes Desktop Client
license above
How to access 1. https://portal.office.com
office365? 2. https://office.com
3. https://outlook.office365.com
Some important Office 365 apps and their uses
Microsoft Outlook email client, calendar, address/contact book and task
manager.
Microsoft OneNote Application to gather handwritten or computer typed notes,
drawings, and audio commentaries.
Microsoft Platform for in which teams can collaborate, access,
SharePoint manage, and share data from any location.
Microsoft Teams Workplace chats, meetings, notes, and attachments for
teams. It can also integrate extensions of non-Microsoft
products.
OneDrive File hosting service and allows to store files as well as
personal data in a cloud. The files can be synchronized to
the computer, downloaded, or shared with other people.
Office Delve Search machine for Office 365. The users can search and
manage their emails, meetings, contacts, social networks,
and documents stored in OneDrive.
MyAnalytics Shows how people spend their time and who they spend it
with the most. MyAnalytics is a private dashboard that
analyses work habits.
Power Business A Cloud-based suite of business analytics. It enables users
Intelligence (BI) to connect, visualize and analyse data with higher speed,
efficiency and understanding.

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Microsoft Forms Allows users to quickly create quizzes, surveys,

questionnaires, and registrations. Data can easily be
transferred to excel or built-in data analytics.
Which password must be used for ADS Password
accessing the Office365 application
Identify the profile user, who can install E3 Profile User
Office365 into their Desktop / Laptop
Name the application in Office365, which Microsoft Forms
can be used for creating a Quiz
Identify the online file storage application OneDrive
available in Office365

E-COMMERCE: REVIEW OF CARD RATES ON TRANSACTIONS RELATING TO SBMOPS, SB

COLLECT AND ASVA (Acquisition of e-Commerce Sub-merchants Via Aggregators)

For State Bank Collect/ SBMOPS (name changed as SBI ePay Lite)

(A). Card Rates for all categories (Other than Govt. Transactions where Agency
Commission applicable, e-Commerce & e-Tendering)

Net Banking Transactions

Type of Transaction/Transaction Card Rate
amount
(a) SBI Net Banking
Up to Rs.1 lac Rs. 10/- + GST
Above Rs.1 lac up to Rs.5 lacs Rs. 20/- + GST
Above Rs.5 lacs Rs. 40/- + GST
(b) Other Banks’ Net Banking
Up to Rs.1 lac Rs. 15/- + GST
Above Rs.1 lac up to Rs.5 lacs Rs. 25/- + GST
Above Rs.5 lacs Rs. 45/- + GST

Debit Card transactions Debit Cards (Rupay)- NIL Debit Cards (Visa/ MasterCard)-

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SBI Debit Cards

Type of Transaction/Transaction Card Rate
amount
UptoRs.2,000/- 0.40% of Transaction Value+ GST
above Rs.2,000/- and upto Rs.2,500/- Rs.8/- + GST
above Rs.2,500/- and upto Rs.1 lac Rs.10/- + GST
above Rs.1 lac and up to Rs.5 lacs Rs.20/- + GST
above Rs.5 lacs Rs.40/- + GST
Other Bank’s Debit Cards (Educational Institutions Only)
Type of Transaction/Transaction Card Rate
amount
Upto Rs.2,000/- 0.40% of Transaction Value+ GST
above Rs.2,000/- & Upto Rs.1 lac Rs.12/- + GST
above Rs.2,000/- & Upto Rs.1 lac Rs.18/- + GST
above Rs.1 lac and up to Rs.5 lacs Rs.30/- + GST
above Rs.5 lacs Rs.50/- + GST
Other Bank’s Debit Cards (Other than Education Institutions)
Upto Rs.2,000/- 0.40% of Transaction Value +GST

0.40% of Transaction Value Max Rs.200/-

+ GST for merchants having turnover upto
Rs 20 lac during previous FY

Above Rs.2,000/-
0.85% of Transaction Value Max
Rs.1,000/- +
GST for merchants having turnover above
Rs 20 lac during previous FY

Educational Institutions like:

• Elementary and Secondary Schools, Correspondence Schools
• Colleges, Junior Colleges, Universities, and Professional Schools
• Business, Secretarial Schools
• Vocational Schools and Trade Schools
• Schools and Educational Services (Not Elsewhere Classified)

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Other Payment Modes

Type of Transaction Card Rate
Cash/Cheque at SBI Branch Rs. 50/- per Transaction + GST
UPI NIL
All Bank’s Credit Card (Retail)
(a) For Education or Govt. sector 1.00% of Transaction value (Min. Rs. 11/-)
merchants + GST
(b) All other Corporate merchants 1.80% of Transaction value (Min. Rs. 11/-)
+ GST
NEFT/ RTGS Rs. 15/- per Txn (Inclusive of GST)
Foreign Cards 3.50% of Transaction value + GST
Prepaid Cards#
(a) For Education or Govt. sector 1.10% of Transaction value (Min. Rs. 11/-)
merchants + GST
(b) All other Corporate merchants 1.80% of Transaction value (Min. Rs. 11/-)
+ GST
#
Presently available in SB Collect only.

Wallets (as payment mode)

S.No. Particulars Card Rate
1 Any wallet 2.00% of Txn value + GST

In SB Collect, Circle CGM has discretion to reduce the price up to 50% only in case of SBI Net
Banking and SB Debit Card. For all other concession (including SBI Net Banking and SB Debit Card
above 50% waiver), concession proposal should be sent to Corporate Center for necessary approval.

B. Card Rate for Govt. related Transactions for which agency commission is applicable
S.No. Type of Transactions Card Rate
1 SBI INB and SBI Debit Card NIL
2 Other Banks’ Net Banking Rs. 6/- per transaction inclusive of GST
3 Other Banks’ Debit NIL
Card
(Rupay)

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Upto Rs.2,000/-: 0.40% of Transaction

Value+
Other Banks’ Debit Card GST
4
(Visa/ MasterCard)
Above Rs.2,000/-: Rs.12/- per transaction
inclusive of GST
1.30% of Txn Value
5 Credit Card (Retail) (Min Rs. 12/-) Inclusive of GST
1.30% of Txn Value
6 Prepaid Cards (Min Rs. 12/-) Inclusive of GST
7 Cash/SBI cheque at SBI NIL
Branches
8 NEFT/ RTGS NIL
9 UPI NIL

#
The proposed Mode of transaction will be applicable only after the necessary development in SB
Collect/ SBMOPS platform.
- In above all online transactions pertaining to Govt., Agency Commission of Rs.9/- will be
recovered from RBI/Govt., in addition to the above MDR/Charges.
- Further, agency Commission of Rs. 40/- will be recovered from RBI/Govt. for each offline transaction.
C. Card Rates for e-Tendering Online Collection of Tender Fees

S. Mode of Payment Card Rate

No
1 SBI Internet Banking Rs 20/- per Txn + GST
2 Debit Cards (Rupay) Nil
Debit Cards (Transaction up
3 to Rs 2000/-) (Visa/ 0.40% of Transaction Value+ GST
MasterCard)
Debit Cards (Transaction 0.85% of Transaction Value
4 above Rs 2000/-) (Visa/ Rs.1,000/-) + GST
MasterCard)
Other Banks’ Internet
Banking/
5 Rs 25/- per Txn + GST
Cash or Cheque at SBI
Branches
6 NEFT Rs. 15/- per Txn+ GST
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7 Credit Cards (Retail) 1.80% of transaction value + GST

8 UPI NIL

Online Collection of EMD/ Tender Fees & EMD (Together)

S.No. Mode of Payment Card Rate

1.00% of transaction value (Minimum
SBI & Other Bank’s Net Rs.50/-
1
Banking Maximum Rs.150/-) + GST
Cash or Cheque at 1.00% of transaction value (Minimum
2 SBI Rs.50/-
Branches Maximum Rs.150/-) + GST
1.00% of transaction value (Minimum
3 NEFT / RTGS Rs.50/-
Maximum Rs.150/-) + GST

D. Card Rates for e-Commerce merchants

S.No. Type of Transactions Card Rate

1 SBI INB 0.90% of Txn Value + GST

2 Other Banks’ Net Banking 0.90% of Txn Value + GST (Min Rs.6) + GST
3 All Banks’ Debit Card Nil
(Rupay)
SBI Debit Card
(Visa/
4 0.40% of Transaction Value+ GST
MasterCard)- Upto
Rs.2,000/-
SBI Debit Card 0.75% of Txn Value (Max Rs.1,000/- per
(Visa/ Txn) +GST
5
MasterCard)- Above
Rs.2,000/-
Other Banks’ Debit Card
6 (Visa/ MasterCard)- Upto 0.40% of Transaction Value+ GST
Rs.2,000/-
Other Banks’ Debit Card Above Rs.2,000/-: 0.85% of Txn Value (Max
7 (Visa/ Rs.1,000/- per Txn) + GST
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MasterCard)- Above
Rs.2,000/-

8 Credit Card (Retail) 1.85% of Txn Value + GST

9 UPI NIL

e-Commerce merchants like:

• Online Shopping Portal,
• Online Marketplace like Amazon, Flipkart etc
• Online Shopping Portal (Not Elsewhere Classified)

(E). MOPS Integration Charges:

Card Rate

Integration Charges of Rs. 20,000/- plus GST to be recovered upfront from the
Merchant for each integration facility (INB/ PG / Mobile Banking/etc) and Rs.
40,000/= plus GST for MOPS integration.

Acquisition of e-Commerce Sub-merchants Via Aggregators (ASVA)

A. SBI Net Banking: For Specific below mentioned Categories

Sl. Particulars
Card Rate
No.

1 Education (Govt or Private)/ Rs. 15/- per Transaction + GST

Recruitment
Services/ B2B Transaction/ Utility
payment for Housing societies
(Maintenance collection)

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2 Utility/ e-Governance Citizen services Rs. 5/- per Transaction + GST

involving small amount/ Mobile or
DTH recharge/ Financial Brokers/
Insurance/ Mutual Fund
3 E-Tendering/ e-Auction/ Real Estate Rs. 30/- per Transaction + GST.
Merchant including Government
Development Authority/ Housing
Boards/ Govt. Transaction not
covered in (2) above

4 Merchants (e-Commerce, Travels 0.90% of Transaction value + GST

(Govt. or private both), e-Learning,
Coaching/ Tuition services,
Broadband services, Others)

(B). Payment Gateway Transactions:

Debit Cards (Rupay)- NIL

Debit Cards (Visa/ MasterCard)-

(i) Transactions upto Rs.2,000/-:
Particulars Card Rate
ON US Txns (Txns upto Rs.
0.25% of Txn Value+ GST
2000/-)
OFF US Txns (Txns upto 0.40% of Txn Value+ GST
Rs.1000/-)
OFF US Txns (Txns from 0.35% of Txn Value+ GST
Rs.1001/- upto Rs.2,000/-)

(ii) Transactions above Rs.2,000/-: (a) Specific Category Merchants: For Specific
category merchants also, in respect
of transactions upto Rs.2,000/-, the rates as mentioned in para (i) will be applicable. For
transactions above, Rs.2,000/- following rates will be applicable:

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S. No Particulars Card Rate

On us Off us
1 Credit card bill pay
transaction related
to financial
Rs.5/- per Txn+ GST NA#
institution and Loan
Repayment to
Banks
2 Mutual Fund Rs.16/- per Txn+ GST Rs.18/- per Txn+ GST
Transaction
3 Government Rs.11/- per Txn+ GST Rs.12/- per Txn+ GST
Transaction
4 Insurance Rs.11/- per Txn+ GST Rs.12/- per Txn+ GST
Transaction
5 Education Rs.16/- per Txn+ GST Rs.18/- per Txn+ GST
Transaction
#
We do not acquire as VISA/ Master card do not allot MCC code and have not prescribed any
interchange fee for such transactions
(b) Regular Merchants (i.e., other than above Specific categories)

S Particulars Card Rate

No
1 Commission Payable on Us 0.75% of Txn Value+ Taxes
Txns Max Rs.980/- per Txn +GST
2 Commission Payable on Off Us 0.85% of Txn Value+ Taxes
Txns Max Rs.995/- per Txn +GST
(iii) Credit Card/ Prepaid Card Transactions (Other than Corporate Cards) *
S No Particulars MCC Card Rate

1. Post Office, 9402, 7349, 6513, 4111,

Property 4131, 4784, 8211,
Management, 8220, 8241, 8244, 8249, 1.00% of
Transportation, 8299, 4900, 5960, 6300, Transaction value
Education, Utilities, 9211, + GST
Insurance, and
Government
9222, 9311, 9399, 9405

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2. Travel, e- All MCCs not covered under S No 1.85% of Txn

Commerce & (1) above Value + GST
Others
* Three new categories viz. Post Office, Property Management, Transportation included along
with the existing specific categories like Education, Utilities, Insurance, and Government. As the
Interchange rates are like existing specific categories. MCC code is also given for more clarity.
Proposed rate will be same for all the categories. (iv) Credit Card/ Prepaid Card Transactions
(Corporate Cards) *
S No
Particulars Card Rate

1. All categories 2.10% of Txn value + GST

* Prepaid Card transactions charges will be same as Credit card transaction charges.
As per MasterCard, the interchange applicable on prepaid Card is same as Credit Card
Interchange. Whereas in case of Visa, interchange is mixed in nature of Debit & Credit cards.
Keeping in holistic view, MasterCard interchange is on higher side, therefore, we have
proposed Prepaid Cards Rates same as Credit Card rates.
C. Integration and Other Charges for Aggregators:

Card Rate

Integration Charges of Rs. 1,00,000/- plus GST per channel to be recovered upfront from the
Aggregator.
MID allotment/creation charges Rs.500/= plus GST and Rs. 200/= plus GST as annual maintenance
fee per MID to be recovered from the Aggregators.

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SBI UNIPAY – BHARAT BILL PAYMENT SYSTEM (BBPS)

Bharat Bill Payment System (BBPS) is a Reserve Bank of India (RBI) conceptualized ecosystem
which offers integrated and interoperable bill payment services to consumers across
geographies with certainty, reliability and safety of transactions.

• SBI has been certified with NPCI to operate in BBPS as both Customer Operating Unit
(COU) and Biller Operating Unit (BOU). Bank’s COU is live in digital payment channels in
INB prelogin, Yono post login, Yonolite prelogin, Yono Business prelogin and in physical
channels through Business Correspondents.
• “SBI Unipay” is the brand name approved for the application which has been functional
both in Customer Operating Unit side and Biller Operating Unit side.
• Onboarding of Merchants on the BBPS platform provides opportunity to the branches for
strengthening their relationship with the Govt./Commercial entities, cross sell Bank’s
products and augmenting their Current Account portfolio. In addition, the Bank also
earns fee-based income by way of interchange and biller service fee on the BBPS
transactions.
• The operating functionaries are enjoined upon to market for BBPS as part of the offerings
to the entities involved in collection of fees/charges etc. on recurring basis.
• In this context, the competent authority has approved the pricing structure to be charged
from Billers/Merchants for onboarding them on Bank’s Biller Operating Unit platform and
the structure of COU service charges pertaining to AI/Agent integration charges, profit
sharing with Agents/Agent Institutions and sharing of Customer Convenience Fee (CCF)
among the Bank and Agent /AI.
• Delegation of powers to approve Concession: In view of the scope of potential business,
Circles/branches may need to offer concessions in Biller service fee, concession/ waiver
in Biller/ Agent Institution integration fee and profit sharing between Bank and Agent
institutions, on case-to-case basis.

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PROCEDURE OF ATM/ADWM CASH VERIFICATION:

Sr
No Periodicity To be verified by Remarks
.
1 Daily / ATM /ADWM Joint Photocopy of the Admin Slip/Cash
Whenever Custodians. Balance slip is to be pasted in the
cash is register duly signed by the
replenished / ATM/ADWM joint custodians.
evacuated
2 End of Day (EOD) ATM /ADWM Joint EOD process to be done for balancing
activities on Daily Custodians. purpose. Tally of
basis Physical cash, Admin Balance and
3198 BGL done on a daily basis to
identify short/excess cash.

3 Quarterly An official other than the To be nominated by RBO /

ATM/ADWM Joint Controllers
Custodians
4 Quarterly – on the Branch Manager/ ATM cash verification Certificate –
last date Authorized official & original to be retained at Branch,
ATM/ADWM Joint duplicate to be sent to
Custodians RBO/Controllers and Triplicate to
be sent to Audit Department at LHO.

5 Annually – on the Branch Manager/ ATM cash verification Certificate –

last date authorized official & original to be retained at Branch,
ATMADWM Joint duplicate to be sent to
Custodians
RBO/Controllers and Triplicate to be
sent to Audit Department at LHO.

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6 ATM Cash Officials other than Joint This arrangement will be in addition to
Audit- Custodian. (to be allotted the existing arrangement where such
once in a by verifications are being done on
quarter quarterly basis at the end of each
ACV-Circle Location
quarter.
- through
ATM Cash Audit Tool link
in
‘ATM iALERTS’ and it is
paperless)

ELECTRONIC CARD
Electronic Cards can be considered as Debit Cards issued in specific overdraft accounts that are
in the nature of Personal Loan without any specific end-use restrictions. Banks have been
permitted to issue Electronic Cards to natural persons having Overdraft Accounts so as to enable
domestic digital transactions in such accounts.

Electronic Card for Overdraft Accounts will be used for domestic transactions only and usage of
such cards is restricted to facilitate online/non-cash transactions only. In Electronic Cards, facility of
Cash withdrawal (ATM) and International usage will not be available. These cards can be used
for Domestic PoS and e-Com transactions only.

Bank will add new products in future as per business requirements. Branches are instructed:
i. Not to add any other account (Secondary Account) for Electronic Card products. ii. Not to
add any Overdraft Account as Secondary Account with other Debit Card product issued with
normal Saving or Current Account.

ELECTRONIC CARD FOR OVERDRAFT ACCOUNT

Name of Card Electronic Card
Network RuPay
Type of Card Standard and Platinum Variants
Issuance criteria Contactless Debit Card
Type of Account Overdraft (Personal Loan)
Domestic (International usage is disabled from backend as per RBI
Usages guidelines, customer cannot enable it using Switch On / Switch Off
facility) (Cash withdrawal permanently disabled from backend).

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Daily Cash Limit at

Nil
ATMs
Standard Platinum
Rs. 75,000/- Rs.2,00,000/-
Daily Purchase Limit Maximum Contactless transaction limit is Rs.
at PoS/E-com 5,000/- per transaction, maximum valuer of
all contactless transaction per day is
Rs.15,000/-
Validity Maximum: 3 years
Issuance Fee Nil
Annual Maintenance Standard Platinum
Charges Rs. 125/- plus GST Rs. 250/- plus GST
Replacement
Rs. 300/- plus GST for both variants
Charges

STAFF ACCOUNTABILITY FOR INFRINGEMENT/ TRANSGRESSION IN CORE BANKING

DATA AND OTHER INFORMATION TECHNOLOGY TOOLS & PACKAGES OF THE BANK

With a view to identifying the erring employees, prima facie responsible for the repetitive lapses of
non-compliance with the laid down systems and procedures in CBS and other IT tools and packages
of the Bank, this policy was approved by the Executive Committee of the Central Board of the Bank in
its meeting held on 4th March 2015.

Dashboard for the same is available at SBI Times >>under menu Usefullink1 in submenu
‘Centralized Project Ganga’ and also in MIS online under ‘Useful Links in submenu ‘Infringement
Portal’

Presently, the following infringements/transgressions have been listed out:

Sl. Infringement Type Business Definitions of Types of

No. Infringements

i. Education Loan without Security For loans opened without security,

infringements will be raised against the
ii. Auto Loan without Security Maker and Checker who have opened
iii. Gold Loan without Security the account.

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iv. Loan against Deposit without Security In case of Education Loan, collateral
security is waived up to a certain limit.
v. Loan against paper security without Opening of such Education Loan
Security
Accounts without security will not be
vi. Tractor Loan without Security treated as an infringement.
Some loans, such as Xpress Credit,
vii. Other Advances without security Pension Loan, etc. are sanctioned
without security. Opening of such loan
accounts without security will not be
treated as an infringement.

viii. Transaction Rejected by TFCPC Whenever a transaction is rejected at

TFCPC, infringement will be raised
against the Maker and Checker
associated with that transaction.
Rejection due to technical reasons
should not be treated as infringement.

ix. Accounts Rejected in LCPC Infringement will be recorded for

AOFs rejected at LCPC against the
Maker/Checker, who opened the
accounts. For KYC updation,
infringement will be marked against the
Maker/Checker updating the KYC in
CBS.

x. Interest Rate Below EBLR For loans opened with Interest Rate
below EBLR, infringements will be
raised against the Maker and Checker
who have opened the account.

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xi. DLP Infringements Any sharing of the following Keywords

beyond the Threshold Levels will be
marked as infringements (Keyword,
Threshold & Mode are subject to
change as per the directions of the DLP
Committee):

Keyword Threshold Mode

PAN 50 & Blocking

above
BIN 5 & above Blocking

Debit 5 & above Blocking

Card
No.
with/without
CVV
Credit Card 5 & above Blocking
No.
with/without
CVV
Aadhaar 5 & above Blocking
for McAfee
DLP
1 & above for
O-365 email

Voter 5 & above Blocking

ID No.
Passport No. 5 & above Blocking

Mobile No. 100 & Blocking

above

CIF No. 100 & Blocking

above

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A/c No. 100 & Blocking

above

Date of Under Monitoring

Birth Monitoring
Mode

xii. Infringements identified manually by the It is to be used only if the Branch

Branch Head Manager wishes to report any
(Any case/instance other than above, infringement which is not captured by the
which the BM treats as infringement) system.

Staff accountability at different stages of data infringement under the provisions of the Bank’s
approved policy are as under:

Instances Course of Action Penalty Provisions proposed Designated

of Proposed Authority
Infringement
1st Instance System generated Nil Nil
Intimation Letter
will be sent to the
employee through
e-mail (format as
per in Annexure I),
so that he/she can
exercise suitable
caution.

2nd Instance System generated The employees will be Immediate

Caution Notice counselled to remain careful Controller
will be sent to the and not to repeat the
mistake in future.

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erring employee /Reporting

through e-mail in Authority
the prescribed
format as per
Annexure – II.
3rd Instance System generated The employee will be advised Immediate
Warning Letter will / indicated to remain more Controller /
be issued through careful, failing which Reporting
e-mail in the disciplinary action will be Authority
prescribed format initiated and penalty / fine will
as per be imposed.
Annexure – III.

4th Instance System generated Category Disciplinary

Show-Cause notice Maker Checker Authority
will be issued Award Staff Stoppage of
in the annual increment
prescribed format for minimum one
(As per Annexure – month
IV, to be suitably
modified wherever
necessary)
proposing initiation
of disciplinary Officer Cash Penalty of
action. Rs.
2,000/-

5th Instance System generated Award Staff Stoppage of

show-cause notice annual
will be issued in the increment for
prescribed format minimum two
(As per Annexure – months

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IV, To be suitably Officer Cash Penalty of

modified wherever Rs.
necessary) 3,000/-
proposing initiation
of disciplinary
action.

Subsequent Major penalty proceedings / proceedings for major Disciplinary

Infringements misconduct will be initiated against the employee Authority
concerned as per the relevant provisions for Service
Rules / Conduct Rules of respective category of
employee.

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Cross Selling Products and Financial Inclusion

Mutual Funds
A mutual fund is a professionally managed investment scheme, usually run by an asset management
company that brings together a group of people and invests their money in stocks, bonds and other
securities. Parties involved in the Mutual Fund • Sponsor: A Sponsor establishes the Mutual Fund,
along with any individual/body corporate. The Sponsor’s liability is restricted to his contribution.
Sponsor must contribute a minimum 40% to the net worth of AMC. • Trustees: Refers to Board of
Trustees who holds property of the Mutual Fund, for the benefit of the unit holders. • Asset Managing
Company (AMC): Asset Management Companies are firms pooling investments from various
individual and institutional investors. The company manages the investment by investing in capital
assets such as stocks, real estate, bonds and so on.

• Net asset value (NAV) is the value of a fund's asset less the value of its liabilities per unit. NAV =
(Value of Assets-Value of Liabilities)/number of units outstanding.

• New fund offer (NFO): is the first-time subscription offer for a new scheme launched by the asset
management companies (AMCs). A new fund offer is launched in the market to raise capital from the
public in order to buy securities like shares, govt. bonds etc. from the market.

Mutual funds can be classified as 1. Open ended funds - is a collective investment scheme which
can issue and redeem shares at any time. An investor will generally purchase shares in the fund
directly from the fund itself rather than from the existing shareholders. 2. Close ended funds - A
closed-end fund is organized as a publicly traded investment company by the Securities and
Exchange Commission (SEC), it raises a fixed amount of capital through an initial public offering
(IPO).

Funds can also be classified as Growth Fund and Dividend Fund–

In the growth option, profits made by the scheme are invested back into it. Dividends are declared
only when the scheme makes a profit, and it is at the discretion of the fund manager. The dividend is
paid from the NAV of the unit.
Some common types of Mutual Funds are:

1. Liquid Funds/Money market funds - These funds invest in short-term fixed income securities
such as government bonds, treasury bills, bankers’ acceptances, commercial paper and certificates
of deposit. They are ideal for Corporate, institutional investors and business houses who invest their
funds for very short periods.

2. Debt Funds/Fixed income funds - These funds buy investments that pay a fixed rate of return
like government securities, corporate bonds, commercial papers, debentures and other money
market instruments. They aim to have money coming into the fund on a regular basis, mostly through
interest that the fund earns. They are less risky when compared with equity funds.
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3. Equity funds/Growth Funds - These funds invest in equity shares. These funds aim to grow
faster than money market or fixed income funds, so there is usually a higher risk that one could lose
money.

4. Balanced funds - These funds invest in a mix of equities and fixed income securities. They try to
balance the aim of achieving higher returns against the risk of losing money.

5. Index funds - These funds aim to track the performance of a specific index such as the BSE /
NSE. The value of the mutual fund will go up or down as the index goes up or down. Index funds
typically have lower costs than actively managed mutual funds because the portfolio manager doesn’t
have to do as much research or make as many investment decisions.

6. Gilt Funds- These funds invest in Central and State Government securities and are best suited
for the medium to long-term investors who are averse to risk. Government securities have no default
risk.

7. Fund-of-funds - These funds invest in other funds.

8. Arbitrage Fund: Funds which seek returns from arbitrage opportunities between equities and
derivatives and invest in debt when no arbitrage is possible.

Mode of investment: i) Lumpsum: One-time investment. ii) SIP: Systematic investment plan (SIP) is
a regular investment in a fund for a fixed sum at a fixed frequency. SIP is a good way to invest at an
average price over a period.

Life Insurance

SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Cardif. Bank has
been the Corporate Agent of SBI Life since the year 2000. All “Individual” Policies are being marketed
only by employees licensed by IRDAI i.e., “Certified Insurance Facilitators” (CIFs).

• Life Insurance - Life insurance is a protection against financial loss that would result from the
premature death of an insured.

• Whole life policy - Whole life insurance is a contract with premiums that includes insurance and
investment components. The insurance component pays a predetermined amount when the insured
individual dies. The investment component builds accumulated cash value the insured individual can
borrow against or withdraw.

• Endowment policy - An endowment policy is a life insurance contract designed to pay a lump sum
after a specific term (on its 'maturity') or on death

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Rider: A rider is an add-on provision to a basic insurance policy that provides additional benefits to
the policyholder at an additional cost. Types of Riders 1. Accidental Death Benefit – death due to
accident or bodily injury. It doubles the sum assured payable. 2. Accelerated Death Benefit –
involves payment of all or a portion of life insurance policy’s face value prior to the insured’s death
because of adverse medical condition of the insured. 3. Waiver of Premium - A waiver of premium
rider is a clause in an insurance policy that waives the policyholder's obligation to pay any further
premiums should he become seriously ill or disabled.

Effect of riders on insurance policies are 1. When a claim for the benefits of a rider is made, it can
result in the termination of the rider, while the original policy continues to insure you as usual.

2. When a claim for the benefits of a rider is made, it can result in the termination of the entire policy.

Mortality Tables: A table that shows the rate of deaths, occurring in a defined population, during a
selected time interval or survival from birth to any given age.

Premium plans and payment modes 1. Single premium – premium is paid in one lump sum and
once only. 2. Level premium - the premiums remain the same throughout the duration of the contract.
3. Limited Payment - Premiums on limited payment life insurance are paid for a limited number of
years, but the benefits last a lifetime. 4. Flexible Premium Plan – flexibility of deciding the amount of
premium.

Bonus - bonus is the extra sum which gets accumulated to any insurance policy on a yearly basis
which will be paid to the policyholder on the maturity of the plan or in the case of his death. This will
be paid on successful completion of all the premiums due for a particular number of years.

Actuary - a person who compiles and analyses statistics and uses them to calculate insurance risks
and premiums.

General Insurance

SBI General Insurance Company was formed as a joint venture of SBI with Insurance Australia Group
(IAG). General Insurance “Individual” products can be sold only through trained and qualified
employees of the Bank, called “Specified Persons (SP)” and group products can be sold by any staff
of the Branches.
General Insurance comprises of insurance of property against fire, burglary etc, personal insurance
such as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are
also other covers such as Errors and Omissions, Insurance for professionals, Credit Insurance etc. •

Government run schemes (namely ESIS, Central Government Health Scheme or CGHS) – these are
mandatory. 1. Employer State Insurance Scheme (ESI): - Enacted in 1948, the employers’ state
insurance (ESI) Act was the first major legislation on social security in India. 2. Central Government
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Health Insurance Scheme (CGHS): - Established in 1954, the CGHS covers employees and retirees
of the central government and certain autonomous and semi-autonomous and semi-government
organizations. 3. Universal Health Insurance Scheme (UHIS):- For providing financial risk protection
to the poor, the government announced UHIS in 2003.

Other initiatives of Government of India 1. Maternity Benefit (Amendment) Act 1961 2. Workmen’s
Compensation (Amendment) Act 1923 3. Plantation Labor Act 1951 4. Mine Labor Welfare Fund Act
1946 5. Beedi Workers Welfare Fund Act 1976 6. Building and Other construction Workers Act 1996
7. Janraksha insurance scheme Health insurance provided to employees by an employer or by an
association to its members is called group coverage.

The premium paid towards medical insurance is tax deductible under section 80D (u/s 80D) of the
Income Tax Act, 1961

SBI General has developed a portal ‘Nivaran’ to provide the customers efficient post-sales services.
The portal is made available to all the branches through the SBI General ‘Nivaran’ site, which can be
accessed through SBI Times at all the branches. In this module, Specified Persons (SMs) /staff can
lodge the service request in the portal.

SBI General has launched a new product ‘Arogya Sanjeevani’ for the customers of the Bank. It is an
individual health insurance product. It adds value and satisfies the insurance needs of our customers
as it is a comprehensive package product that provides financial protection in case of any incident that
leads to hospitalization and also covers pre- and post-hospitalization treatment. It provides coverage
from Rs.1,00,000 to Rs.5,00,000 and offers both individual as well as family floater plans.

Sale of Third-Party Products: Assessment of Suitability and Appropriateness Framework

In the approved ASAF, customer declares his/her income and accumulated savings (balance in
SB/TDR/STDR/RD). CIF /ACE based on the need of the customers, suggest the product/investment
time period, up to 70% of accumulated savings can be invested.
For Single Premium cases: [50% of (Total income – Total Expenditure)] + (Total Accumulated
Savings x 70%)
For Regular Premium cases: [50% of (Total income – Total Expenditure)] + {(Total Accumulated
Savings x 70%)/ Premium Payment Term}
(Total Expenditure as declared by the customers includes EMIs of existing loans, if any and TDS
etc.)

For various cross selling products and their features (of SBI Life, SBI General, SBI MF, SBI Cards,
NPS and SBI CAP securities) and operational instructions, Master Circular No.: NBG/CVE-
BU/Ops/Others/26/2022 – 23 dt 07.10.2022 to be referred.

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Financial Inclusion
Financial Board Approved FI Plan is submitted to Reserve Bank of India once in three
Inclusion Plan years.

Definition of The process of ensuring access to appropriate financial products and services
Financial needed by vulnerable groups such as weaker sections and low-income groups,
Inclusion at an affordable cost, in a fair and transparent manner by mainstream
(As per institutional players
Rangarajan
Committee on
Financial
Inclusion)
Business It is business model through which we are providing financial services to the low
Correspondent income, weaker and vulnerable sections of the population at their doorstep with
the help of technology.

Future of this Partnerships with the stakeholders in the like telecoms, insurance companies,
Model micro finance institutions and consumer goods companies etc would enable the
bank to provide end to end solutions, variable products for creating more social
impact, economic growth, which in turn increases profitability of the Financial
Inclusion initiatives

Awards received ‘Best Bank in Financial Inclusion Technological Award’ at the Business Today
by the Bank for Best Bank Awards held on 6th March 2018.
Financial
Inclusion ‘Winner’ in ‘Best Financial Inclusion Initiatives’ at the IBA Technology Awards,
Initiatives 2016-17, held on 27/02/2018.

Best Financial Inclusion Initiative Award for Bhim Aadhaar Pay App by SKOCH
Awards.

Best Bank award for use of Technology for Financial Inclusion among Large
Banks by IDBRT.

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BUSINESS CORRESPONDENT

Entity Business Entities such as Companies, NBFCs, NGOs, Societies, and Trusts etc may be
Correspondent engaged as Entity Business Correspondent (BC). They are of two categories:

i. National BC operating in more than a state or throughout the country

ii. Circle BC operating in one or two states of the Country (within a Circle

Security Deposit The Entity BCs enter into an agreement with the Bank which is valid for a period
of 12 months and reviewed every year. In case of Entity BCs at Circle, the review
will be carried out by the AGM (FI) and put up to DGM (FI) at LHO.

At Corporate Centre, the review will be carried out by an official not below the rank
of DGM and put up to GM (FIMM). BC provides a security deposit to be Bank:

• A security deposit or Bank Guarantee in lieu thereof may be obtained as

follows:
• In case of Corporate BCs, security deposit of Rs. 10.00 lacs for every block
of 1000 CSP outlets are to be obtained. For the next block of 1000 CSP
outlets additional minimum-security deposit of Rs.10.00 lacs are to be
obtained. Security deposit should be kept in the form of STDR for a period
of 5 years and kept under safe custody. Safe custody receipt will be kept
with the following officials after marking a lien on the STDR.

At Corporate Centre: DGM (FIMM- Operations)

At Circle level: DGM (FI) or any other officer authorized by DGM (FI)
Eligibility NGOs/MFIs set up under Indian Societies/Trust Acts and Section 8 of Companies
Criteria for Act 2013.
Engagement of
Entity Business Co-operative Societies registered under mutually aided Cooperative
Correspondents Societies/Cooperative Societies Acts of States/Multi State Cooperative
Societies Act.

Post Offices

Companies with large and widespread retail outlets, excluding Non-Banking

Financial Companies (NBFCs-Deposit taking). Preference is to be given to

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companies whose network is largely in rural areas and are willing to cover the
unbanked areas.

RBI registered NBFC (Non-Depositing taking) entities with asset size of Rs.50
crore and above.

Payment Banks
Selection Constituents of the Selection Committee for engagement of BCs at National level
Procedure and Circle level will be as under:

a) National Level BCs

The Selection Committee will consist of CGM (FI&MM) or GM (FI), DGM (FI -
Alliances) and any one of the DGMs in FI&MM Department. The agreement with
the BC may be signed by either CGM (FI&MM) or GM (FI) on behalf of the Bank.

b) Circle Level BCs

(i) A committee consisting of one of the network General Managers, Circle FI DGM
and 2 Assistant General Managers will be formed. The AGM (FI) posted at LHO,
will be permanent member and act as member secretary to the committee.
Eligibility a.CSP/KO/Sub KO should have passed minimum of 12th Standard.
Criteria for
CSPs/KOs b. The CSP to be of acceptable repute and to have satisfactory market standing

c. He should have enough cash as working capital to meet cash requirement at

Kiosk outlets and should be able to handle cash efficiently.

d. Obtain proper cash insurance.

e. Ability to handle operations leveraging technology.

f. Due diligence carried out by the CSP in respect of sub-KOs proposed to be

appointed especially in the areas of reputation and other risks involved.

g. The KO / CSP Should not be defaulter to any Bank / Financial Institution. A

CIBIL report for proposed CSP / KO should be generated / obtained by BC and to

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be ensured that the proposed CSP / KO is not a defaulter to any Bank/ Financial
Institution.
h. The proposed KO / CSP should not be affiliated to any political party.
i. The CSP should know the local language / dialect.

j. The CSP should have knowledge of the area

k. The CSP operators should have been referred by at least two persons known
to the bank.

l. Police verification of CSP must be arranged by BC. The selection, may however,
not be withheld for delay in receipt of the police verification (delay beyond 2
weeks). Wherever felt necessary suitable affidavit of CSP/KO may be obtained.

m. KOs/ CSPs be issued a letter by BC under their acknowledgement that in the

absence of failure of submission of Police Verification Report by CSP within a
period of 6 months from the date of creation of CSP/KO code, the CSP/KO code
will be deactivated / deleted by BC/Bank

© All agents engaged till 18th June 2019 as Customer Service Provider (CSP) by
the BC obtain mandatory BC certification from Indian Institute of Banking and
Finance (IIBF) by 31st March 2020. All other agents engaged by BC as CSPs to
obtain mandatory BC certification within 9 months from the commencement of
operations.

CSP Code Every CSP enrolled will be allotted an alpha-numeric code which will be used for
Allotment all the transactions handled by the CSP concerned. The 8-digit alpha-numeric
code has the following pattern: First 4 Digits representing BCs (National BC- first
digit – 1, Circle BC- first digit – 3) after those codes chronologically are allocated
to the CSPs of a particular BC.

The Corporate BC will furnish a list of CSPs proposed to be employed by him to

LHO with details of their biodata containing photograph, address, age,
educational background, present occupation, monthly income, details of existing
banking arrangements, area of operation and past experience, if any, related to
banking and insurance.

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The concerned LHO will arrange for additional due diligence through RBO/DSH
and issuance of KO Code

The Circle will then arrange to impart two-day training to these authorized agents
who will participate in the activity on behalf of the BC. One-day refresher course
is also provided to existing BCs/CSPs. The Circle should review the
performance and conduct of the BCs (entity) at monthly intervals and take
necessary steps for improvement under advice to Corporate Centre.
Role and (a)The outlets are manned by reliable and knowledgeable person so that business
Responsibility continuity is maintained.
of Business
Correspondent (b)Due diligence is done on selected agents/ employees and obtain their police
verification before their appointment.

© All agents engaged till 18th June 2019 as Customer Service Provider (CSP) by
the BC obtain mandatory BC certification from Indian Institute of Banking and
Finance (IIBF) by 31st March 2020. All other agents engaged by BC as CSPs to
obtain mandatory BC certification within 9 months from the commencement of
operations. The current timeline has been provided by Reserve Bank of India and
is subject to change.

d) Adequate overview, supervision and monitoring is exercised over the

functioning and operations of kiosk outlets manned by their agents and ensure
that services are being delivered at outlets, as per the extant instructions of the
Bank.

(e) Only authorized agents/employee having Bank allocated code will access the
system and any deviation from this practice will call for necessary action including
termination.

(f) BCs to ensure that the commission is paid to all CSPs through CCPM by
providing Bank account details of all their CSPs to the Bank.

Further,
(a) BC shall also ensure that confidential information, directly or indirectly, is not
disclosed without prior written consent of the Bank.

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(b) BC will compensate the bank/customers for acts of omission or commission of

the CSP/employee employed by him.

(c) BC will put an Escalation Matrix in place for complaints and issues faced by
CSPs and Redressal mechanism should also be in place for addressing the
grievances of agents.
Business • Opening of Savings Accounts/RD Accounts/Term Deposit Accounts.
handled at
Customer • Receipt and payment of small value deposits and withdrawals (not
Service Point exceeding Rs.20, 000/-) using kiosk-based transactions.

• Micro ATM/YONO transactions and AEPS transactions up to Rs.10000/-.

• Receipt and delivery of small value remittances viz., Inter-Bank and Intra
Bank

• Aadhaar number seeding and capturing Fingerprints, on voluntary basis

of customers for DBT benefits and AEPS transactions.

• Acceptance of deposit in loan accounts.

• Providing mini account statements and other account information.
• Distribution of Coins and Bank Notes.
• Promoting, collecting forms and Enrolling customers under Social Security
Schemes viz. PMJJBY, PMSBY and APY and 3rd party products.
• Cross selling activities viz. mutual funds, life insurance and general
insurance products subject to SEBI and IRDA guidelines.
• Payment and Receipt in respect of e-Governance activities
• Recovery of principal loan amount and interest thereon in respect of NPA
accounts, only after complying with RBI instructions.
• Passbook Printing/updating.
• Utility Bill Payment (Bharat Bill Payment System)
• The CSPs of Business Correspondents will be linked to an identified base
branch which is called ‘Link’ Branch. KYC, AML norms and due diligence
is to be ensured by the CSPs for strict compliance under BC model.
However, the ultimate responsibility for KYC / AML, compliance and
opening of the account continues to rest with the bank.

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• The competent authority has now approved the following changes in

the customer on boarding process through e-KYC at BC Channel: i)
Disable printing of e-KYC certificate at CSP level. ii) The E-KYC
certificate to be printed by DSH officials after receipt of the AOF from
CSPs and kept along with the AOF.
Customer They are the agents appointed by the Entity BC to provide financial services to
Service Provider the public on behalf of the Bank. CSP need to adhere to extant instructions on
(CSP) or Kiosk Fair Practices Code and should be accessible to customers from 8 am to 8 pm.
Operator (KO
Customer It is the place where the financial services are provided by Customer Service
Service Point Provider (CSP) or the Kiosk Operator. It would-be at a fixed place and cannot be
shifted without sufficient reason and Bank’s concurrence and approval.• It should
be open from 8 am to 8 pm.•

Transaction Transaction Type Transaction Limit (per day)

Ceilings
Collection and payment of small Rs. 30,000/-
value
deposits and withdrawals
Receipt and delivery of small value Rs. 30,000/-
remittances
Tatkal Remittance/IMPS (Transfer) Rs 30000/- with a monthly limit of Rs
60000/-
Tatkal Money Remittance for non- Rs.20,000/- per day transaction limit
home transaction (deposit to core by
cash/transfer)
IMPS transaction limit per day Rs 5000/-* with a monthly limit of Rs
(Cash) 25000/-
Deposit in loan accounts Rs.20,000/-

Recovery of principal loan amount Rs.20,000/-

and collection of interest thereon

AePS ONUS Withdrawal , deposit Rs 30000/-

and fund Transfer

Special Term Deposit Rs.10,000/- per receipt

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AePS ONUS Withdrawal Rs 30000/- (per day/per transaction)

AePS ONUS deposit and fund Rs 30000/- (per day/per transaction)
Transfer

CIF based deposit, withdrawal, and Rs 30000/- (per day/per transaction)

fund transfer

m-ATM ONUS deposit, withdrawal, Rs 30000/- (per day/per transaction)

and fund transfer

IMPS (Transfer) Rs 30000/- with a monthly limit of Rs

60000/

IMPS (Cash) Rs 5000/-* with a monthly limit of Rs

25000/

CSP should • Dos and Don’ts

display at the • Instructions regarding RuPay Card
Kiosk in • Rate Chart- Fee recoverable from the Customers
bilingual the • Products and services available at the Kiosk
following • Aadhaar and Mobile seeding poster
boards • Training Certificate for new CSP
• Training Certificate for Refresher Course
• Posters of PMJJBY, PMSBY, APY
• Standard signage board as Customer Service Point (GrahakSeva Kendra)
in bilingual with State Bank of India Logo, Name, Branch Code and
Telephone number of the Link Branch, Name, Code, Mobile number and
Location of the CSP. Business Correspondent Name and Logo
The books that Transaction Register. Suggestions-cum-Complaint Register. Visiting Officials
need to be Register.
maintained at
the Kiosk
Kiosk The financial inclusion initiatives are implemented through technology called
Application Kiosk Application, which is web based and accessible through internet and is
maintained by Financial Inclusion & Government Services (FI&GS) department at
GITC, Belapur.

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The transactions in Kiosk Application are made by authenticating customers

through biometric fingerprint validation. The Customer Service Provider validates
every transaction in Kiosk Application by providing his password. Kiosk Operator
has to login to Kiosk Application in his pre-registered PC by using his CSPID,
password and fingerprint.
CSP Audit and The biennial audit of the CSPs under DSH will be carried out by officials from the
Compliance neighboring DSH (under the same RBO under FIMM NW) who will visit both the
CSP and the Link branch to conduct the audit. The compliance of the audit report
is the responsibility of the Link Branch. The audit reports need to be closed within
4weeks from the date of audit.

SERVICES ENABLED AT KIOSK APPLICATION

1.SBI Tiny 11. (IMPS) Immediate Payment Service
Savings Bank 12. Aadhaar Enabled Payment System
Account 13. RuPay Card & ATM Pin generation
2. SBI Tiny 14. Aadhaar Seeding
Savings Bank 15. Mobile Seeding
cum 16. eKYC, cKYC
Overdraft 17. Suraksha Deposit Scheme
Account 18.Fund Transfer (from account to account)
3. SBI Tiny 19. Aadhaar Merchant Payment System
(Special) Savings 20. ATM card blocking facility is introduced at our CSP outlets both for FI and Non-
Bank Account FI customers.
4.Joint Account
opening facility
5. SBI Tiny
Recurring
Deposit Account
6. SHG account
operations
7.SBI Tiny
Special Term
Deposit Account.

8. Pradhan
Manthri Jeevan

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Jyoti Bima
Yojana
9. Pradhan
Manthri Suraksha
Bima Yojana
10. Atal Pension
Yojana
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Eligibility All operative account holders including SB/Current/KCC accounts in the age
group of 18 to 70 years

Features It is a term insurance scheme. Premium is Rs.20/- (Premium: Rs.10/- and

administrative cost: Rs.2). The total amount to be collected from the customer is
Rs.20/- and credited into National Insurance Company Limited (NICL) Pool
account. Our fee towards reimbursement of administrative expenses of Rs.2/- is
claimed from NICL and on receipt of funds it is being shared with Circles. In BC
channel Rs 2/- per enrollment is shared between BC and Bank equally viz., Rs 1/-
each

Table of a. Death- 2.00 (Accidental)

Benefits Sum b. Total and irrecoverable loss of both eyes or loss of both hands or feet or loss
Insured of sight of one eye and loss of use of hand or foot-
(Rs. In lakhs) 2.00
c. Total and irrecoverable loss of sight of one eye or loss of use of one hand or
foot- 1.00

Cover Period (1st June to 31st May.) For Enrolments done since 1st June, the cover period
starts from 1st July and likewise

Termination On attaining 70 years (age nearest birthday) or closure of account

or Premium default

Claim will be National Insurance Company Ltd.

paid by
Enrolment Customer can also enroll under PMJJBY and PMSBY through SMS Channel by
through sending following SMS:

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electronic A. PMJJBY<space>A/CNO<space>NOMINEE_RELATIONSHIP<space>NOMI
means. NEE_FNAME<space>NOMINEE_LNAME

to 09223588888 (SBI Quick Platform) from registered mobile number

B. PMSBY<space>A/CNO<space>NOMINEE_RELATIONSHIP<space>NOMIN
EE_FNAME<space>NOMINEE_LNAME

to 09223588888 (SBI Quick Platform) from registered mobile number

2. If Customer is having SBI Quick App in the mobile then, He/she need not
prepare a manual SMS, instead of that Customer need to enter mandatory details
in SBI Quick APP and System will prepare the SMS in specified format.
SBI Quick-> Functionalities-> PM Social Security Schemes.

Pradhan Mantri Jeevan Jyoti Yojana (PMJJBY)

Eligibility All operative account holders including SB/Current/KCC accounts in the age
group of 18 to 50 years.

Features It is a term insurance scheme. Premium: Rs.436/- (Premium: Rs.395/- and

administrative cost: Rs. 41/-). Provides Life Insurance cover of Rs 2.00 lakhs (on
death due to any reasons). The total premium to be collected from the customer
is Rs.436/- of which Rs.395/- is credited to pool account of SBI Life and Rs 41/-
is retained by the Bank as administrative cost.

Cover Period 1st June to 31st May. For Enrolments done since 1st June, the cover period starts
from 1st July and likewise. There is a lien clause in the rules of PMJJBY with effect
from 1st June 2016, the risk cover will commence only after the completion of 45
days from the date of enrollment into the scheme by the member. The date of
enrolment means date of debit of premium in customer account. However, deaths
due to accidents will be exempt from this Lien Clause.

Termination On attaining 55 years (age nearest birthday) or closure of bank account or

insufficiency of funds for payment of premium or withdrawal in writing

Introduction of In order to encourage eligible account holders to join the scheme at a later stage
PRO-RATA payment of pro-rata premium for enrolment under PMJJBY has been introduced
premium from 01/09/2018, with the minimum premium of Rs 86/- for one quarter required
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to be paid even if a person enrolls under the scheme one or two months before
the end of the policy year.

Claim will be SBI Life Insurance Co Ltd.

paid by
Atal Pension Yojana: Features
Eligibility Any Citizen of India aged between 18 – 40 years having a savings bank
account.

Amount of Rs.1000/- to Rs.5000/- P.M. depending upon the contributions of subscriber.

Pension

Periodicity of Monthly, Quarterly, Half Yearly

Subscription
Mode of First year at branch, afterwards through Auto Debit. The due date for recovery of
subscription monthly/ quarterly/ half-yearly contribution would be any day during the calendar
month or first calendar month of the quarter or first calendar month of the half year
till the last day of the month.

Payment of After attaining 60 years

Pension
Penalty for i. Re. 1 per month for contribution upto Rs. 100 per month.
delayed payment ii. Rs. 2 per month for contribution upto Rs. 101 to 500/- per month.
iii. Rs 5 per month for contribution between Rs 501/- to 1000/- per month
iv. Rs 10 per month for contribution beyond Rs 1001/- per month

The penalty amount will vary from minimum Re 1 per month to every Rs 100/- or
part thereof, for each delayed monthly payment. Overdue interest for delayed
contribution for monthly/ quarterly / half-yearly mode of contribution shall be
recovered accordingly. The overdue interest amount collected will remain as part
of the pension corpus of the subscriber.

Nomination Available. If the subscriber is married, the spouse will be the default nominee.
Facility Unmarried subscribers can nominate any other person as nominee.

Option to Available for once in a year during the month of April

increase or
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decrease monthly
contribution

Exit Before 60 Permitted. In case a subscriber, who has availed of Government co-contribution
Years under APY, choose to voluntarily exit before attaining the age of 60 years, the
Govt. co-contribution and the accrued income earned on the Government co-
contribution shall not be given to such subscribers. Funds redeemed will be
transferred to the subscriber’s Bank account registered in APY

In case of death If the subscriber dies before the age of 60 years, his/her spouse would be given
before the age of an option to continue contributing to APY account of the subscriber, till the original
60 years subscriber would have attained the age of 60 years. The spouse of the subscriber
shall be entitled to receive the same pension amount as that of the subscriber
until the death of spouse.

In case of death Pension would be available to the spouse. In case of death of the Subscriber and
after the age spouse Pension corpus would be returned to the nominee
of 60 years

COMPLAINT REDRESSAL
1. Regional Manager (RM) of the Region will ensure that all grievances received by the Bank are
redressed within a reasonable time (2 weeks)

2. As per the BC agreement, both Entity and Individual BCs indemnify the Bank against all claims,
loss, damages etc. But in case, the Bank is unable to recover fraud amount from BCs, legal action
would be required.

3. In case of fraud, The KO code of the respective BC (individual) / CSP will be deactivated
immediately, and the loss would be crystallized by the link branch.

4. In case of individual BCs, link branch should lodge FIR (under Sec. 154 of CRPC) against the BC,
however, for entity BCs, FIR will be filed against the concerned CSP by entity BCs

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5. If a complainant does not get satisfactory response from the bank within 60 days from the date of
his lodging the compliant, he will have the option to approach the Office of the Banking Ombudsman
concerned for Redressal of his grievance/s.

New Interventions
Aadhaar • Facilitates payment for purchase of goods and services at shops and
Merchant establishments by use of Aadhaar Number and Bio-metric authentication of the
Payment customer.
System Mobile
App • The merchant only needs to have Android Phone with minimum 2G network and
Bio-metric scanner attached to it through USB port.

• The customer need not have any phone, Debit/Credit Card or Mobile Wallet.

• Facilitates Aadhaar based transactions and play a major role in moving towards
Less-cash economy.

Merchant This will facilitate payment for goods and services sold by them through biometric
Transactions authentication of the customer CSPs who are also merchants to receive
menu for CSPs
through Kiosk
Application

Immediate National Payments Corporation of India (NPCI) offers banks and RBI approved non-
Payment banking partners (PPIs), a new payment service called “Immediate Payment
Service (IMPS) Service (IMPS)” IMPS provides robust & real time fund transfer which offers an
instant, 24X7, interbank electronic fund transfer service that could be accessed on
multiple channels like Mobile, Internet, ATM, SMS, Branch and USSD(*99#).
Currently on IMPS, 243 members are live which includes banks & Prepaid
Payments Instruments Issuers (PPI).
Fund Transfer/Remittance Using IMPS

i. Using Mobile number & MMID (P2P)

ii. Using Account number & IFS Code (P2A)

iii. Using Aadhaar number (ABRS)

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Each MMID is a 7-digit code linked to a unique Mobile Number. Different MMIDs
can be linked to same Mobile Number.

i. Both Sender and Receiver have to register for Mobile Banking & get a unique ID
called "MMID"

ii. Generation of MMID is a One-time process

iii. Remitter (Sender) transfer funds to beneficiary (Receiver) using Mobile no.
&MMID of beneficiary

RuPay Card RuPay, a new card payment scheme launched by the National Payments
Corporation of India (NPCI), has been conceived to fulfill RBI’s vision to offer a
domestic, open loop, multilateral system which will allow all Indian banks and
financial institutions in India to participate in electronic payments. It is considered
as an Indian alternate to VISA, Master and Maestro cards. In terms of extant PMJDY
guidelines, customers who open Bank Accounts under the scheme are to be
provided RuPay Debit Card which carries free accidental insurance cover of Rs 1
Lakh and Rs. 2 lakhs for all accounts opened after 28.09.2018. Undelivered RuPay
Debit cards shall not be destroyed under any circumstances.

Bharat Bill Currently bill payments through BBPS service are available only to FI Customers at
Payment the Kiosks.
System
(BBPS) at The following utility bills can be paid through BBPS:
Customer a) Broadband post-paid
Service Point b) Landline post-paid
c) Mobile post-paid
d) Electricity
e) DTH
f) Gas
g) Water
Customer Convenience Fees (CCF) will be collected by the Bank from the
customers availing the BBPS service at CSP. 80% of CCF (except for DTH) will be
shared with BC.

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YONO Cash YONO Cash Withdrawal is the card less withdrawal service available at CSP/Kiosk.
Withdrawal Any customer of the bank having YONO app on their mobile can utilize this service
Services at
CSP

Centralised CCPM is an application to calculate and pay BC commission to BCs and to CSPs
calculation directly. It provides end-to-end solution viz., Acquisition of base data, Calculation of
and payment commissions, Goods & Service Tax (GST) and TDS (based on business rules),
of commission Provision to check the Calculations/trigger payments / maintain master data / and
(CCPM) generate MIS reports for BCs/branches etc
Aadhaar
Enabled Aadhaar: Aadhaar is a 12-digit unique identity number that can be obtained by
Payment residents of India, based on their biometric and demographic data. It is issued by
Systems the Unique Identification Authority of India (UIDAI) on behalf of the Government of
(AEPS) India. During Aadhaar enrolment, certain basic demographic information combined
with ten fingerprints, both irises and photograph are captured to uniquely identify a
resident through a process of de- duplication. An Aadhaar number is a random
number and bear no relation to the attributes or identity of the Aadhaar number
holder. Under the Aadhaar (Targeted Delivery of Financial and Other Subsidies,
Benefits and Services) Act, 2016, Aadhaar is mandatory to receive benefits like
Subsidies/Scholarships/Pension etc from the Government.

Blue Colour Aadhaar: is valid like Aadhaar. UIDAI is issuing Blue Colour Aadhaar
(Bal Aadhaar) for children aged between 0 to 5 years, on the basis of demographic
information and facial photograph, linked with the UID of their parent. After attaining
the age of 5 years, Bal Aadhaar becomes invalid and the demographic and
biometric details of the Child need to be updated against same Aadhaar Number by
visiting nearest Aadhaar Enrolment Centre.

e-Aadhaar is a password protected electronic copy of Aadhaar, digitally signed by

the competent Authority of UIDAI as per IT Act, 2000, which provides for legal
recognition of electronic records with digital signatures. UIDAI has clarified that
downloaded Aadhaar or e-Aadhaar is a valid and secure electronic document which
should be treated on par with printed Aadhaar letter.

The Aadhaar Enabled Payment System (AEPS) is an interoperable payment

platform offered by NPCI to Banks which uses Aadhaar number and online

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biometric authentication from UIDAI for conducting financial transactions at Kiosk.

The AEPS functions through the National Financial Switch of NPCI. AEPS
empowers the Bank customer to use Aadhaar as identity to access his Aadhaar
enabled Bank account. • Perform basic banking transactions (Cash deposit, Cash
withdrawal, Aadhaar to Aadhaar Funds Transfer, Balance enquiry) that are intra
bank or interbank through our BC channel thereby.
transactions are classified as either:

• On Us - Kiosk Customer of SBI visits the SBI CSP outlet

• Off Us (Acquirer) Other Bank customer visits SBI CSP outlet

• Off Us (Issuer) SBI Kiosk Customer visits other Bank CSP

outlet
The transaction limit has been kept at Rs. 10,000/.
Voice Prompt Presently in our FI Channel voice prompt is available in English/Hindi which is not
in Kiosk easily understandable by the FI customers as the accent is not Indian. In order to
enablement in facilitate FI customers to understand the transactions performed by them easily and
English and to prevent fraud at CSP outlet, existing voice prompt in Hindi and English has been
Hindi replaced with new voice prompt facility
Languages.
Log Out Time The KOs/Sub KOs will be automatically logged out from the Kiosk system if they
remain active continuously for 4 hours. The authorized kiosk operator has to again
re-login with their User ID/Password with biometric authentication to continue with
the operation for the next 4 hours. System logs out the KOs and Sub KOs if the
system remains idle for 30 minutes.
Passbook up- In order to meet the demands of the FI customers, passbook up-dation facility at
dation: Kiosk is rolled out. Both FI & Non FI customers can access this facility at kiosk.
Further CSPs are also eligible for remuneration for updating the passbooks. The
remuneration payable to CSPs is Rs.5/- & Rs.6/- per passbook on daily basis for
updating 300 and above 300 passbooks respectively.

Change in Retired officers are engaged to visit the CSPs to supervise their activities. These
Nomenclature: retired officers were designated as “Business Facilitators. The nomenclature for
Business Business Facilitators (BFs) has been changed to Business Correspondent
Facilitators to Facilitators (BCFs)

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Business
Correspondent
Facilitators
Micro ATMs Micro ATMs are handheld point of sale terminals used to disburse cash in remote
locations where Bank Branches cannot reach. Considering the potential of its usage
following additional functionalities have been enabled for usage by FI (Financial
Inclusion) and Non-FI (Non-Financial Inclusion) customers:

a) Deposit b) Withdrawal c) Fund transfer d) Balance enquiry e) Mini Statement f)

Mobile seeding g) Aadhaar linking h) PIN Generation

Micro ATMs having the specifications of “Payment Card Industry Data Security
Standard (PCIDSS)” shall only be used in the Kiosk. Bank is providing Micro ATMs
purchased from Injenco (ICT 220) and Verifone (VX 520).

SBI Tiny (Special) Savings Bank Account: Features of the Product

Eligibility Individuals with age limit of 18 years and above.

Mode of Operated singly Transactions will be through biometric / AEPS / using card with
Operation PIN.

Availability of Overdraft facility upto Rs.10,000

OD
Minimum / Minimum: Nil Maximum: No Upper Limit
Maximum
Balance
Transaction Maximum Rs. 30,000/- per day / per transaction at CSP outlets.  Maximum Rs.
Limit 30,000/- per day / per transaction at Branch in CBS after proper due diligence by
Branch official (Under development).
Number of Not more than one account
Accounts

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Other Features a) No Cheque Book facility

b) INB facility with full transaction rights allowed
c) RuPay (Debit) card issued on request
d) Debits permitted through RuPay (Debit)card / biometric authentication at
Kiosk and AEPS platforms /Branch
e) Foreign remittances allowed
f) Passbook issued at Link Branch

Full KYC Compliant Minor Product (1611-1441)

Eligibility Individuals with age limit of above 10 years and less than18 years

Mode of Operated singly Transactions will be through biometric / AEPS / using card with
Operation / PIN
Transaction
Enabled at BC Channel
KYC Accounts can be opened with any one of the following Officially Valid Documents
Requirements with PAN mandatory (Either of Minor or his parents/guardian): -
a. Passport and b. Proof of possession of Aadhaar
Minimum / Minimum: Nil Maximum: Rs 1.00 lac at any point of time
Maximum
Balance
Transaction Maximum Rs. 20,000/- per day / per transaction
Limit
Ceiling on Maximum: Rs 2.00 lacs
credits in a
year
Operation of (a) No Cheque Book facility & internet banking
the account
and applicable (b) RuPay (Debit) card issued on request
charges
(c) Debits permitted through RuPay (Debit) card / biometric authentication at Kiosk
and AEPS platforms

(d) Foreign remittances not allowed

(e) Passbook issued at Link Branch

(f) Aadhaar Seeding available at the request of account holder.

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(g) Mobile number of minor customer/parents is mandatory.

(h) Maximum number of cash withdrawal is 4 per month.

(i) E-KYC authentication will not be allowed.

(j) On attaining the majority, the customer should visit the Branch and complete
the formalities listed out in our Bank

SBI Tiny Recurring Deposit Account on Kiosk

Eligibility SBI Tiny SB account holder including PMJDY.

Mode of Single
Operation
Initial Deposit Minimum Rs.10/- in cash

Monthly No fixed installment. Multiple deposits can be made in the account during a month
Installment
Tenure of RD 6/12/24/36/48/60 Months

Number of Multiple accounts can be opened with maximum aggregate balance up

Accounts toRs.50,000/-including SBI Tiny SB Account

Rate of As applicable to Time Deposit. Interest will be compounded every Calendar quarter.
interest Pre-Mature Payment Interest paid will be 1% less than the interest payable on the
deposit for the period for which it has run. Transactions only through the Kiosk
Application at the CSP outlet. No penalty for non-payment of any amount in the
account.

Other Features •On the date of maturity, the maturity proceeds will be transferred to the SBI Tiny
Savings Bank account, and the customer can withdraw the amount from SB
Account. • Passbook will be provided at Link Branch.

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SBI Tiny Special Term Deposit Account: Features of the Product

Eligibility Single Individual holding Savings Bank Tiny FI account
Mode of Single operation only
Operation
Minimum Rs 1000/- thereafter in multiple of Rs 500/-
Deposit
Maximum 10,000/-
Deposit
Tenure 6, 12, 24 & 36 months only

Rate of As applicable to STDR accounts from time to time for normal as well as senior
interest Citizen customers.

Other Features Facility of premature withdrawal Available, penalty as applicable in branch channel
for normal branch customer. Premature payment only at the link branch.

Number of Multiple accounts may be allowed subject to the ceiling of max balance of Rs
accounts 50,000/- in all the liability accounts of the customer

STDR acknowledgement will be printed and issued by the Link Branch. CSP will
issue the printed receipt generated from technology device after successful
transaction / receiving deposit amount form the customers.

Jeevan Suraksha Deposit Scheme

Jeevan Suraksha Deposit Scheme is a gift of Rs.5001/- to facilitate the premium payment of both
Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana
(PMJJBY)
The gift Two years premium for both the insurance schemes PMSBY and PMJJBY Rs.
amount of 684/- (Rs. 24+ Rs.660) is credited into the SB account of the insured (in whose
Rs.5001/- is favour the gift is made)
accounted for
as under The remaining amount of Rs. 4317/- is credited into a term deposit account. The
term deposit account is for 10 years and with the annual interest on the deposit the
premium of both the insurances is repaid. Jeevan Suraksha Deposit (TDR) is
created in the following product code -20111902.
Payment of As per the prevalent card rate. To be credited to the SB Ac of the insured as on
Interest 25th of May every year
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Premature Permitted (as laid down by the regulator)

closure
Renewal Auto renewal is exercised if no instruction is received.
Suraksha Deposit Scheme
Suraksha Deposit Scheme is a gift of Rs.201/- to facilitate continuous premium payment (@Rs.12/-
per year) of Pradhan Mantri Suraksha Bima Yojana (PMSBY)
The gift of Rs. Rs.24/- is credited into the savings bank account of the insured (in
201 is whose favour the gift is made) to facilitate premium payment for twoyears.177/- is
accounted for credited into a Term Deposit account for 10 years in the name of the insured (in
in two different whose favour the gift is made) to facilitate payment of the premium of PMSBY for
parts ten years from the interest of the term deposit. Suraksha Deposit (TDR) is created
in the following product code -20111901.
Payment of 25th of May every year
Interest
Premature Permitted (as laid down by the regulator)
closure
Renewal Auto renewal is exercised if no instruction is received.

Jeevan Suraksha Gift Cheque

This Gift Cheque is promoted to facilitate one-year premium payment of both Pradhan Mantri
Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
The Gift which includes the premium of PMSBY and PMJJBY Rs.342 (Rs.12+ Rs. 330)
Cheque is for and Rs.9 Bank Commission
Rs.351
Features. Bankers Cheque is issued in lieu of the Jeevan Suraksha Gift Cheque in the name
of the beneficiary. • The beneficiary would utilise this gift cheque to pay the premium
of both the insurance schemes.
Savings Bank Cum Overdraft Product- MUDRA Loan
Eligibility a) All FI accounts, which are operated satisfactorily for at least six months
(Individuals b) OD to be granted to the earning member of family, preferably woman of the
only) house.
c) There should be regular credits under DBT/DBTL scheme / other verifiable
sources
d) Account should be seeded with Aadhaar for avoiding duplicate benefit.
e) FI account holder should not be maintaining any other SB account with any
Bank/branch to ensure compliance with RBI directives.

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f) Age of applicant between 18 years to 65 years (Not eligible: Minors, KCC/GCC

borrowers, more than one member of the same family)

Nature of Running OD facility in SB account

facility
Period of 36 Months subject to annual review of account
Sanction
Loan amount a) 4 times of Average six-monthly balance or
b) 50% of credit summations in account during the preceding 6 months or
c) Rs 10,000/-- whichever is lower
d) There will not be any conditions attached for overdraft up to ₹ 2,000/-.

Processing Nil
Fee & Security
Sanctioning Branch
authority
Disbursement Withdrawals through branch/BC/ATM/POS

Inspection & Inspection waived for all standard assets. All irregular accounts to be followed up
follow up closely

Other features The revised SBOD scheme is non-discretionary in nature; therefore, the sanction
process of the product has been automated on LOS platform, with minimum manual
intervention at the Branch level. The revised automated functionality for SBOD
sanction process will work through LOS, wherein, the quantum of the SBOD limit
will be arrived at from backend itself on the basis of parameters of the SBOD
scheme and will be auto populated COOLIN in LOS.

The steps of sanctioning process of the SBOD is as under:

Sourcing Stage: The Branch official designated as Sanctioning Officer in LOS

will process the application in LOS. The list of account processed will be sent
automatically to NPCI through FIGS for mapping the Aadhaar of the concerned
customer. After positive response from NPCI, the account will be available in LOS
for maker in CBS.

Maker Stage: The maker having transaction rights in CBS (other than the
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sourcing official) will verify the Aadhaar seeding status in LOS, received from
NPCI and submit the auto populated SBOD limit details in LOS for authorization
by Checker.

Checker Stage: The Checker, a sourcing officer or any branch official (other than
maker) will authorize the records for SBOD limit creation in LOS.
Upon sanction of loan in LOS, an SMS will be sent to the customer. Upon receipt of
SMS, the customer will be required to submit a simple ‘Declaration Form’, to their
respective branches. It will be kept on record with the branches and recorded in
LOS.
Opening of accounts in the Kiosk Application
a. CSP needs to fill all the mandatory customer details (Gender, First name, last name, Date of birth,
mobile number and Tax Residency status) in Customer Creation sub menu inside the main Menu,
“Customer Creation”.

After entering the customer mobile number, the system will dedupe the mobile number with mobile
number of KO/Sub KO/BC admin on real time basis. Thereafter OTP will be sent to the mobile number
of customer. This OTP has to be keyed in by CSP for further key in of data.

CSP to fill all details and proceed with fingerprint capturing. CSP should capture all 6 fingerprints of
the customer.

After Capturing FPs of the customer, customer Account Opening form will be displayed. CSP need
to fill all the mandatory details (Mandatory Fields are marked as *) under ‘Customer Details’ tab
provided by the customer. The Customer’s reference number will be generated and displayed at the
top of the page for easy reference.

e-KYC Customer Enrollment

For e-KYC Customer enrollment, CSP has to follow the below Steps in KIOSK Portal

1. e-KYC Certificate Generation.

2. e-KYC Customer Enrollment.

e-KYC Certificate Generation Process

CSP has to enter the Customer’s Aadhar Number for certificate generation under ‘SBI Other
Services’ Menu: e-KYC option.

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CSP has to capture Customer’s fingerprint.

After UIDAI authentication, a certificate will be displayed in the application with the demographic
details of the customer fetched from UIDAI with Photo.

An e-KYC Certificate Number will also get displayed in the certificate.

Customer Enrollment
CSP has to input the ‘Certificate Number’ generated in the above step in ‘Account Opening Ref No’
field in Customer enrollment menu under Customer creation.

Mobile Number and the Tax Residency of the Customer should be provided.

OTP Verification will be done for the provided customer’s Mobile Number.

After successful verification, Customer creation form will be displayed to capture other mandatory
fields of the customer necessary for enrollment.
Recovery in Standard Small Agri/ SME accounts by BC/CSPs
BCs/CSPs are eligible for collection of repayments in Standard Accounts in the Agri and SME
segments up to Rs 10 lakhs with the following conditions.

a. Collections up to Rs.20,000.00 per day per borrower will be deposited at CSPs

b. Collections in excess of Rs.20000/- will be deposited at the branches

c. CSPs will issue ONLY system generated receipts for all collections

d. Commission @ 0.50% on collections and an additional 0.25% of the existing limit in accounts
resulting in RENEWAL shall be paid at monthly intervals.

e. The commission will be paid through Centralised Commission Payment Module

f. No additional charges shall be levied/ recovered from the borrowers

g. The branch to communicate the details of accounts allotted to the concerned BC (one branch one
BC for collection). h. Mapping will be done by branch/ GITC.

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Visit to CSP outlets by Bank Officials and BCFs

Position: Visits Stipulated
BC Facilitators Monthly (75 CSPs in a month), The visits are to be uploaded
in mobile App
DSH Official / Link Branch Official i) Monthly: The CSP outlets which are not mapped to any BCF
shall be visited by Link branch / DSH Official at least once in a
month.
ii) Quarterly: The Link branch official/DSH official shall visit
CSP once in a quarter. (In respect of CSPs which are mapped
to BCFs)

Dy. Manager (Op), At least 5 CSPs per month (1 should be rural and 1 Semi
Urban)
CM (FI)/RM at RBO, AGM(FI)/CM(FI) At least 5 CSPs per month (1 should be rural and 1 Semi
at AO Urban)
DGM (B&O)/DGM(FI) – At least 5 CSPs per month (2 Rural)
GM (Network) At least 3 CSPs (1 should be Rural CSP)
New Current Account with dedicated Product Codes
In order to ensure strict Tax compliance and effective monitoring of transactions between the
BCs/CSPs, Bank rolled out dedicated accounts for the settlement of funds between BCs and CSPs.
The features of the accounts are as under:
➢ The opening of accounts in the new product codes will be allowed only for CSPs engaged by
Corporate BCs of SBI.
➢ Credits into the accounts under these new products should be from the BC settlement account only
(5011-2501) (Existing product).
➢ The two new product codes are 5011-1561(for personal segment) and 5011 - 2561(for non-personal
segment).
➢ There are no ceilings on Min/Max Balance and Credits.
Financial Literacy & Awareness
What is meant by Creating awareness among the people about various banking /financial
financial literacy? products and services so that they can understand the risks and rewards to
make informed choices.
Who are the stake (a) Central government (b) State governments (c) Regulators, including RBI,
holders for SEBI etc. (d) Financial Institutions (e) Educational institutions (f) NGOs and
financial literacy? other Social/voluntary organizations.

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National Strategy Financial Stability Development Council (FSDC) is a statutory body for
for Financial ensuring financial stability & financial development in India. This Council is
Education (NSFE) headed by Finance Minister of India. Under FSDC, there is a sub-committee
which looks into implementation of Financial Literacy in India.

Some of the Financial Inclusion, Financial Education and Inclusive Growth

objectives of NSFE • Knowledge and skill development
are:- • Freedom from exploitation
• Avoidance of over indebtedness
• Promoting entrepreneurship

Institutions involved in Financial Literacy

1. Each Lead Bank has to establish an FLC in the district for carrying out financial literacy programmes
in the district. FLCs are set as a Trust or a society. Each FLC may have one Counselor and maximum
two Directors. Under the Lead Bank Scheme, our Bank is having the responsibility in 151 Districts of
the Country
They are recruited by FLCs on contract basis for 2 years. Counselors could be a retired bank official,
and Directors could be one from retired bank official and the other from a retired principal of a college.
FLCs should ensure that the programmes conducted are not oriented for marketing of products of
sponsoring bank.
Rural Self Employment Training Institutes (RSETIs) are also set up by Lead Banks in each district.
RSETIs are to give training to unemployed youths to take such vocations to ensure their sustainable
livelihood. RSETIs to help the trained youths to set up the units, provide linkages including credit
linkage from commercial banks in his area
Rural branches of Banks are required to conduct one camp per month (on the third Friday of each
month after branch hours) and cover all the messages that are part of the Financial Awareness
Messages.
Comics are provided by RBI, in their site which can be downloaded in various languages. Two main
characters of the comics rate “Money Kumar”, who explains about functions of RBI and “Raju” who
explains about banking products & services, which can be downloaded and distributed to the people.
There are videos/films and other materials for financial literacy programme available under RBI and
NSFE website. RBI Young Scholars Award is constituted to create interest in school students.
Colourful and meaningful posters are available in the RBI site which can be downloaded and used for
conducting camps as the posters are suitably made to convey the meanings in an easier and
convincing manner. RBI categorised 5 different target groups as specified below:
Farmers
SHGs
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Micro and Small Entrepreneurs

Senior citizens
School children
Funding support FLCs and rural branches are eligible for funding support for financial literacy
from Financial camps to the extent of 60% of the expenditure of the camp subject to a
Inclusion Fund maximum of Rs.5000/- per camp, on taking prior permission from NABARD. In
(FIF) north-eastern states, it is 100% of expenditure of the camp subject to maximum
Rs.6250/- per Camp.

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GENERAL BANKING- CASH DEPARTMENT PROCEDURE

In Branch Cash Handling System (IBCH):

Each Cashier/SWO will be provided with an aluminium cash box (Size14 inch x 11-inch x 4
inches) along with keys. He is required to retain some cash (within the overnight retention limit
fixed) in the cash box. This cash will form part of the branch hand balance. The locked cash
boxes after being marked with suitable identification will be deposited with the Cash Officer
for overnight safe keeping in the vault room under joint custody. Max permitted Limit is Rs
0.50 lacs.
Operations in Currency Chest:
Balance of bins in CBS, vault register. Total value of cash in vault t, and BGL account 98958
must tally.
Packets / Bundles are made as per Cash Department Procedure and are having note slips
bearing signature of person responsible for quality & quantity of notes.
The amount withdrawn/deposited is entered in Vault Register. This Register is always held in
the joint custody of Cash Officer and Accountant and kept inside the strong room. The minimum
transaction in Currency Chest is Rs 1,00,000/- & in multiples of Rs 50,000/- thereafter. The
remainder of cash is retained as hand balance. All transactions are reported to RBI everyday
by uploading data through ICCOMS software (e-Kuber). Non reporting/ delayed/erroneous
reporting is penalized by RBI. All denomination of notes/coins of Rs.1/- and above will form part
of Currency Chest.
During bimonthly/ half yearly verification of chest the verifying official has to verify 2% of chest
balance in the denomination of Rs.100 and above (Bi-monthly)/ 5% of chest balance in all
denomination (Half-yearly) to be verified through Note Sorting machines (NSMs).
Reporting in ICCOMS/CyM(e-Kuber) is made correctly in the given time schedule.
Denomination wise no. of pieces and value tallies with what has been reported in ICCOMS /
CyM (e-Kuber).

Soiled Note Balance/ Soiled Note Remittance

Soiled notes/mutilated/cut notes must be sent to RBI periodically. Remaining balance

(Denomination-wise) in CCs is being checked by staff other than the Joint Custodians before
sending Soiled Note Remittances (SNR) to RBI and the prescribed report is submitted to
controlling authority with a copy on record.

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Processing of Currency Notes through Note Sorting Machine (NSM)

All the notes forming part of currency chests / remittances received from other branches are
sorted through NSMs. All currency notes of Rs.100 and above to be processed through NSM
before re-issue to public.
NSMs are being used for processing of the currency notes and record of the same is maintained.
Mandatory verification of records of receipts of cash and its processing on NSMs by an officer
other than the Joint Custodians on a weekly basis is being ensured and record thereof is
maintained.

Levy of Penal Interest/ Penalty

Penal interest at the rate of 2% over the prevailing Bank Rate for the will be levied on the amount
due from the chest holding bank for the period of delay for Delayed period of Reporting/ Wrong
Reporting/ Non-Reporting/ inclusion of in eligible amount. Penal interest will be levied on the
amount due from the chest holding bank for the period of delay and will be calculated on T+0.
Penalty of Rs.50,000. Will be levied in case the chest had a “Net Deposit” /Soiled Note
Remittance to RBI/ Diversion to other chests are erroneously shown as withdrawal.

Small Coin Depot

Small coin Depot is maintained at the Currency Chest branches and it is property of
Government of India. The minimum transactions from/to Small coin depot will be Rs.100/- and
in multiples of Rs.50/-. All denomination of coins below Rs.1/- will form part of Small Coin
Depot. The notes and rupee coins in the currency chest, and the small coins in the small coin
depot must be kept distinct from each other and from those in Branch Cash Balance.

Color Coding of Bins

Based on the instructions issued by the RBI the Bank has adopted colour coding of bins at all
our Currency Chests as under: i) Two magnetic strips each of 3” X 4” may be affixed at the
doors of bins. Colour of left strip may denote quality of notes and colour of right strip may
denote denomination. As per RBI guidelines, colour coding of bins was to be completed by
30.09.2019.
Type of Currency Notes Colour of Left
Magnetic Strip
Fresh Green

Quality Wise Colour Reissuable Brown

No issuable Orange

Unprocessed Red

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Denomination (Rs.) Colour of Right

Magnetic Strip
1/,2/,5/& 10 Black
Denomination Wise Colour
20/- White

50/ Grey

100/ Blue

200/ Violet

500/ Yellow

Currency Chest Verification

Periodicity Currency Chests To be done by Report to be
covered closed by
Bimonthly Starting from (January - All Currency Chests Official not Regional
February) (CCs) connected with Manager
the CC (RM)
Half-yearly (April –September) & All Currency Chests Officials of the DGM & CFO
(October – March) dedicated Cell
at the LHO

ii. Compliance process:

Report compliance / closure process has been modified to three tiers as under:
Compliance Process Designated Official

Bi-monthly) (Half-yearly)

Compliance Submission BM BM

Scrutiny of compliance CM (C&R) RM

Compliance Verification xxxxx Verifying officer, who

conducted the
verification.

Report Closure RM DGM & CFO

iii. Timeline for Compliance:

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Timelines for Report compliance / closure are as under:

Compliance Process Stipulated period
Bi-monthly Half-yearly

Compliance Submission 15 days 30 days

(From date of report)

Compliance Verification by Xxxxx 30 days

officer at LHO

Report Closure 7days 7 days

In each of the following case Staff Accountability will be examined by the controllers
Deficiency found /reported by CC Action for Controllers
Verifying Officials

Physical shortage in Currency < Rs.10,000 Ensure that such shortage is immediately
recovered
Physical shortage in Currency > Rs.10,000 Arrange for Re-verification of Currency.
Investigation of the matter

Shortage found in Currency Chest balances and in soiled note remittances sent to
RBI: Penalty by RBI
Shortage in Chest Balances
Shortage in Soiled Note
Remittances:
i) Recover amount of shortage from Joint Custodians ii)
Recover penalty imposed from Joint Custodians iii)
Initiate disciplinary proceedings against the Joint
Custodians
i) Recover amount of shortage from Potdar
accompanying remittance & Joint Custodians. ii)
Recover penalty imposed from Potdar accompanying
remittance & Joint Custodians. iii) Initiate disciplinary
proceedings against Potdar accompanying remittance
& Joint Custodians.

Petty Cash
All expenses up to Rs.200/ will be met in cash through Petty Cash. To meet low value
unforeseen expenditure, an advance from Branch Suspense A/c of Say Rs. 2000/ or 3000/
will be taken in cash in the beginning of month. The advance taken will be credited in Petty
Cash Register and any expenses up to the prescribed limit will be met out from this cash
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against the voucher/invoice and acknowledgment of the recipient. At the end of month petty
cash requires to be closed by reversing entries of Branch Suspense A/c after debiting total of
the various heads to charges a/c and remaining cash in petty cash, if any. All the amount of
Petty cash will be in single custody of Cash Officer so operations in the petty cash will be sole
responsibility of Cash Officer.

Counterfeit Notes

Counterfeit Notes can be impounded by- (i) All Banks (ii) All Treasuries and Sub-Treasuries.
(iii) Issue Offices of Reserve Bank of India.
Each Bank Note which is determined as counterfeit one by the concerned official at counter
or back office/Currency Chest will be stamped as “Counterfeit Note” with a stamp having
uniform size of 5 cm X 5cm. Each such impounded note shall be recorded under
authentication, in Forged Note Detection and Impounding Register (item code 202499004)
under authentication of cash officer and Accountant of the branch/office concerned.
Counterfeit notes so detected and impounded must be entered on the same day in Counterfeit
Currency Reporting (CCR) portal, available in SBI Times=> More Links=> SBI Single Sign on
=> Counterfeit Currency Reporting. Branches will report such Fake Indian Currency Notes
(FICNs) on CCR portal also which are detected by RBI in remittances sent to them or detected
during inspection conducted by RBI.
Chief Manager (Compliance & Risk) of the concerned RBO will act as Nodal Bank Officer for
all the districts falling under the jurisdiction of the RBO. He will be the single point of contact
for all activities related to detection, impounding and reporting
For cases of detection of counterfeit notes up to 4 pieces, in a single transaction, a
consolidated branch wise report in the prescribed format (Annex III) based on data extracted
from CCR portal should be sent by the Branch Manager to the Police Authorities or the Nodal
Police station, along with the suspect counterfeit notes, at the end of the month. Branch would
also forward a copy of the format to the Nodal Officer for information. For cases of detection
of counterfeit notes of 5 or more pieces, in a single transaction, the counterfeit notes should
be forwarded by the branch immediately to the local police authorities or the Nodal Police
Station for investigation by filing FIR in the prescribed format. Branch would also forward a
copy of the format to the Nodal Officer for information. Acknowledgement to be obtained and
kept on record.
All Counterfeit Notes received back from the police authorities/ Courts be advised to FNVC
and should be carefully preserved in the safe custody of the branch where these were
detected, and a record thereof be maintained by the branch in a separate folio in Branch

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Documents Register. Counterfeit notes should be preserved for a period of three (3) years
from the date of receipt from the police authorities. Such Counterfeit Notes should be sent to
the concerned Issue Office of Reserve Bank of India with full details thereafter
Branches should ensure that cash receipts in the denominations of 100 and above are not
put into recirculation/ deposited in vault without the notes being machine processed for
authenticity, irrespective of the volume of daily cash receipt.
A ‘soiled note' means a note which has become dirty due to normal wear and tear and also
includes a two-piece note pasted together wherein both the pieces presented belong to the
same note and form the entire note with no essential feature missing. These notes should be
accepted over bank counters in payment of Government dues and for credit to accounts of
the public maintained with banks
A mutilated note is a note of which a portion is missing, or which is composed of more than
two pieces. Mutilated notes may be presented at any of the bank branches. The notes so
presented shall be accepted, exchanged, and adjudicated in accordance with Reserve Bank
of India (Note Refund) Rules 2009.
Notes which have turned extremely brittle or are badly burnt, charred, or inseparably
stuck up together and, therefore, cannot withstand normal handling, shall not be accepted
by the bank branches for exchange. Instead, the holders may be advised to tender these
notes to the concerned Issue Office where they will be adjudicated under a Special Procedure.
Exchange of Soiled Notes

Where the number of notes presented by a person is up to 20 pieces with a maximum value
of Rs.5000 per day, banks should exchange them over the counter, free of charge.: Where
the number of notes presented by a person exceeds 20 pieces or Rs.5000 in value per day,
banks may accept them, against receipt, for value to be credited later. Banks may levy
service charges as permitted.

Service Charges for exchange of Soiled/Imperfect Notes

Upto 20 pieces and value upto Rs.5,000/- FREE

More than 20 pieces and / or value more than Rs.5,000/-

More than 20 pieces Rs.2/- per piece on entire tender + GST

Value above Rs.5,000/- Rs.2/- per piece or Rs.5/- per 1000 + GST
whichever is higher on entire tender @

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@ For example, 25 pieces of Rs.500/- = value Rs.12,500/- are tendered:

Charges Rs.2/- per piece : Rs.50/- + GST,

Charges @ Rs.5/- per Rs.1000/- : Rs.62.50 + GST

Amount to be charged will be Rs.62.50 + GST

Exchange of Mutilated Notes

(For Re 1, Rs 2, Rs 5, Rs 10 &Rs 20 notes)-Full Value (any portion >50%),

ANY PORTION <50% Rejection of claim

(For Rs 50, Rs 100, Rs. 200, Rs 500 &Rs2000 note)

Full value (single largest undivided piece of the note>80%)

Half value ((single largest undivided piece of the note > 40% <=80%

-Rejection of claim (any portion <= 40%)

Two half pieces of the same note (Full)

Deliberately Cut Notes: The details of the case such as the name of the tenderer, the number
of notes tendered and their denominations should be reported thereafter to the Deputy/General
Manager, Issue Department, under whose jurisdiction the branch falls. The matter should also
be reported to local police in case a large number of such notes are tendered.
All bank branches are required to display at their branch premises, "SOILED/MUTILATED
NOTES ARE ACCEPTED AND EXCHANGED HERE" for information of general public.
However, they should ensure that the note exchange facility is not cornered by money
changers / dealers in defective notes.

Provision of Penalty by RBI

Shortages in soiled note remittances and
currency chest balances
For notes in denomination up-to Rs.50:
Rs.50/- per piece in addition to the loss for
notes in denomination of Rs.100 & above -
Equal to the value of the denomination per
piece in addition to the loss. Shortages of
100 pieces and above per remittance shall
be debited immediately. Penalty may be

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levied on reaching a limit of 100 pieces in a

cumulative manner

Mutilated notes detected in soiled note
remittances and currency chest balances
Rs.50/- per piece irrespective of the
denomination Mutilated notes of 100
pieces and above per remittance shall be
debited immediately. Penalty may be levied
on reaching a limit of 100 pieces in a
cumulative manner

Non-compliance with operational guidelines Penalty of Rs. 5000 for each irregularity.
by currency chests detected by Penalty will be enhanced to Rs. 10,000 in
RBI officials case of repetition. Penalty will be levied
a) Non-functioning of CCTV immediately
b) Branch cash/documents kept in strong
room
c) Non-utilization of NSMs for sorting of notes

Violation of any term of agreement with RBI,
as detected by RBI officials e.g.
a) Non-issue of coins over the counter to any
member of public despite having stock.
b) Refusal by any bank branch to exchange
soiled notes /refusal by any currency chest
branch to adjudicate mutilated notes tendered
by any member of public
Rs. 10,000 for any violation of agreement
or deficiency of service. Rs. 5 lakhs in case
there are more than 5 instances of violation
of agreement/deficiency in service by the
branch. The levy of such penalty will be
placed in public domain. Penalty will be
levied immediately

c) Non conduct of surprise verification of

chest balances.
d) Denial of facilities/services to linked
branches of other banks.

e) Non acceptance of lower denomination

notes (i.e., Denomination of Rs. 50 and
below)

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f) Detection of mutilated/counterfeit notes in

re-issuable packets prepared by the currency
chest branches
The Competent Authority to decide the nature of irregularity will be the Officer-in-Charge
of the Issue Department of the Regional Office under whose jurisdiction the defaulting
currency chest/bank branch is located. Appeal against the decision of the Competent
Authority may be made by the Controlling Office of the currency chest/branch to the Regional
Director/Chief General Manager/Officer-in-Charge of the Regional Office concerned, within
one month from the date of debit, who may decide whether the same can be accepted/
rejected.

RBI NOTE REFUND RULES 2009:

RBI has since amended the Note Refund Rules 2009 to enable general public to exchange
mutilated notes in Mahatma Gandhi (New)series at Bank branches, RBI has changed the minimum
area of the single largest undivided piece of note required for payment of full value and half value
for notes of rupees fifty and above to 80% from earlier 65%, which is detailed in Gazette
notification. Explanation: For the purposes of this sub-rule, it is hereby clarified that the value of a
mutilated note of less than rupees fifty denomination may be refunded in full if the undivided area
of the single largest piece of the note is as specified in column (5) of the Table 1 below.

TABLE 1

Denomination Length Width Area Minimum area (in

cm2)
(cm) (cm) (in cm2)
required for
payment of full

value*

(1) (2) (3) (4) (5)

1 9.7 6.3 61.11 31

2 10.7 6.3 67.41 34

5 11.7 6.3 73.71 37

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10 13.7 6.3 86.31 44

10 (New MG 12.3 6.3 77.49 39

Series)

20 14.7 6.3 92.61 47

20(New MG 12.9 6.3 81.27 41

Series)

indicated as the next complete higher square centimetre after half of the area of the notes in a
particular denomination.
Explanation: For the purposes of this sub-rule, it is hereby clarified that the value of a mutilated
note of equal to or more than rupees fifty denomination may be refunded in full or half, as the case
may be, if the minimum undivided area of the single largest piece of the note is as specified in
column (5) or (6) of the Table 2 below:

TABLE 2
Denomination Length Width Area Minimum area Minimum area
(in
(cm) (cm) (in cm2) (in cm2)
cm2) required required for
for
for half value**
full value
payment @

(1) (2) (3) (4) (5) (6)

50 14.7 7.3 107.31 86 43

50 (New MG 13.5 6.6 89.10 72 36

Series)

100 15.7 7.3 114.61 92 46

100 (New MG 14.2 6.6 93.72 75 38

Series)

200 14.6 6.6 96.36 78 39

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500 15.0 6.6 99.00 80 40

2000 16.6 6.6 109.56 88 44

@ Rounded off to the next complete higher square centimetre of 80% of the area of the notes in
a denomination.
** Rounded off to the next complete higher square centimetre of 40% of the area of the notes in a
particular denomination.".

if the claim of mutilated notes of rupees fifty and above denominations consist of a note composed
of two pieces of the same note and the two pieces, individually have an area equal to or more than
40 percent of the total area of the note in that denomination, then the claim may be refunded for
full value of the note.

Procedure for Handling Cashin Non-Chest Branch:

Maintenance of Cash Receipts /Delivery Books

1.Every employee /official (e.g., Assistant, Senior Assistant, Teller, Single Window Operator,
Special Assistant, Cash Officer) in the cash department will maintain for recording cash handled
by him/ a Cash Receipt / Delivery Book. The physical transfer of cash between any two employees
will be made only after making appropriate entries and signing relative entries in the Cash Receipt
/ Delivery Books maintained by the concerned employees. The Cash Receipt / Delivery Book must
be with concerned employee and overnight the books will be kept in the strong room.

2. Handing over and taking over of cash during the day:

After the Cash Officer has taken out of the strong room cash for the day's operations, assistants
(cash) / Senior Assistants (cash) / Tellers / Single Window Operators (SWOs), as the case may
be would obtain from the Cash Officer their requirements of cash on the basis of their estimate of
the day's requirements. While taking over the notes,
a. The receiving employee will examine and count physically loose pieces of notes, if any.
b. He will count and confirm the number of packets in the bundles received by him.
c. He will break open the bundles in the presence of the Cash Officer / Senior Assistant / any other
authorised official and scrutinize the packets to ensure that the packets are duly prepared in the
manner laid down and bear the note slips duly signed by the employees preparing the packets,
and in case of denominations of Rs.500 and above, also recounted to Cash Officer /Special
Assistant. He will further verify the correctness of the note packets.
d. If any defective or forged note or shortage is detected in any packet, Cash Officer / Special
Assistant will arrange to recover the amount of shortage from the concerned employee / official,
who is responsible for the said deficiency.

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e. He will, thereafter, give receipt for the cash in the Cash Receipt /Delivery Book maintained by
the Cash Officer and records the amount of cash received by him in the Cash Receipt /Delivery
Book maintained by him. Cash Officer will initial against the entry in the receiving employee's Book.

3. While handling the day's operations, if at any time cash falls short of the requirements, the
concerned employees will obtain fresh supplies from the Cash Officer in the same manner as
indicated above. They may obtain fresh supplies from other employees if so, directed by the Cash
Officer. Correctness of notes, packets and bundles has to be verified by receiving official at every
instance as described in Sub-point 2 above.

4. The employee receiving the cash will be solely responsible for the custody and safety of all cash
entrusted to his care or received by him in the course of his duties and for the protection of other
items, which represent money. He must take due care of cash and other items at his counters. For
this purpose, he will be provided with a cash box /cash drawer with locking arrangements, and
when leaving the counters, he must ensure that all cash is properly locked up in his cash box
/drawers. The keys of the drawers /cash box must always remain in his possession. The
employees at the cash /single window counters should also handle with care all instruments, such
as cheques, drafts, debit /credit vouchers, etc., to ensure their safe keeping from the moment
these are received by them until their proper delivery to other designated employees /officers.

Record of Cash Transactions

a. At the close of the day's business, a final summary of the day's total cash transactions will be
prepared by carryover of day's total receipts and payments from receipt scrolls and payment
registers of the respective employees to the appropriate places in the Cash Officer's Cash Jotting
Book
b. The entries made in the said Book must be thorough checked and authenticated by the Cash
Officer.
c. The physical cash must tally with the closing cash balance as arrived at in the Book. The Joint
Custodian will compare and agree the various figures in the

Cash Officer's Jotting Book with the relative figures in the Cash Balance Book Currency Chest
Book and other books in the Accounts Dept.

Preparation of "Issuable" Note Packets & Bundles

Procedure for preparation of Packets of Notes of denomination below Rs.500

1. After acceptance of cash at the counters, it will be sorted into issuable and non-issuable notes.
In case of doubt about any note tendered on the counter, the receiving employee, before accepting
such note, should get the Cash Officer's approval recorded on the note for its acceptance. The
receiving employee will not be held responsible for the quality of notes bearing the Cash Officer's
acceptance instructions.
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2. As often as may be convenient during the course of business and finally at the end of the day's
transactions, Assistant (Cash) etc. will prepare packets of notes, separately for each
denomination, containing hundred pieces (notes) each.

3. After examining the notes and satisfying himself for the quality and counting the number of
pieces as 100 in the note packet the Assistant (Cash) etc. will wrap the note packet by note slip
around the left-hand edge of the note packet in such a manner that the note slip will be covered
by both the vertical rings. He will secure the note packet with the help of twine vertically from left
hand side along the water mark portion. Thereafter, adhesive paper seals will be affixed along the
vertical twine covering the knots on both sides of the Note packet. The Assistant (Cash) preparing
the packet will sign in full of date on the note slip across the paper seal.

Procedure for preparation of Note Packets of denomination ofPs.500 & above

1. Follow procedure for “preparation of Packets of Notes of denomination below Rs.500

2. Thereafter, he will hand over the note packet to the Cash Officer /Special Assistant verifying the
correctness of the quantity of the notes. The Cash Officer /Special Assistant will verify the
correctness of the quantity of the notes in the presence of the Assistant (Cash) etc. who prepared
the note packet. After satisfying himself the Cash Officer /Special Assistant will tie a ring of twine
vertically on the right-hand side and horizontally along the width of the note packet and affix a
paper seal at the intersection of the vertical and horizontal twines on the right-hand side and affix
his signature for having verified the correctness of the quantity of the notes.

3.At the end of the day as and when ten packets of 100 pieces are ready, the Assistant (Cash)
etc. will prepare a bundle (1000 pieces) of ten packets prepared by him. Then with the help of a
bundling machine / jute string the bundle will be prepared by tying /strapping it both horizontally
and vertically in a crisscross manner.

4.Fractional bundles, containing less than ten packets, if any, will also be prepared and bundled
as mentioned above.
Preparation of "Non-issuable" Note Packets & Bundles
1. The process is same as that of preparation of Note packets & bundles of Rs. 500 below
and above.

Responsibility for Counting /Recounting of Note Packets

1. The Assistant (Cash) etc. preparing the packets remains responsible for both the quality
and quantity of the notes in the packets prepared by him for denominations from Rs. 1 to
Rs.200. The Assistant (Cash) etc. will be responsible for quality of notes of Rs.500 and
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Rs.2000. Cash Officer /any other authorized official who recounted such packets will be
responsible for quantity of notes in such packets. The responsibility for the quality and
quantity of notes continues till such time as the packets are broken and counted in the
presence of an authorised official by an Assistant (Cash) etc. and found correct. If any
shortage /defective note is detected in any packet/bundle, the Assistant (Cash) etc. or Cash
Officer etc. who prepared or recounted it will be responsible for the shortage.

2. If, however, while turning out the packets from the vault to paying Assistant, the assistant
detects any discernible prima facie evidence of tampering on a packet and if shortages are
discovered in such a packet the Cash Officer will be held responsible for the shortage.

3. The employee / official responsible for the deficiency / loss including the one caused due
to short receipt or excess payments will be called upon to immediately make good the loss
/ shortages. Where he is unable to do so, the shortfall will be recovered from the employee’s
security deposit if any, or from the salary and allowances as per instructions from the
Controlling Authority. All shortages / deficiencies must be reported to the Controlling
Authority immediately after their detection, even if the shortages are made good in full by
the concerned employee / official. Omission to do so will be viewed very seriously.

4. All instances of shortages will be recorded in a special register, with brief narration of the
incident and the action taken, under authentication of the joint custodians. Instances of
frequent detection of shortages in sealed note packets bearing no apparent proofs of
tampering should be immediately brought to the notice of the Controlling Authority who, if
considered necessary, will arrange to carry necessary investigation in the matter.

5. The Cash Officer should maintain for reference a systematic record of the specimen
signatures of all the employees /officials who are working in the Cash Department and
should also ensure, through random scrutiny, that they generally adhere to their recorded
signatures while subscribing their signatures on the note slips.

Taking over of Cash-by-Cash Officer

1.At the end of the day or at any time during the day when accumulation of cash is in excess of
the requirements, Cash Officer /Special Assistant will take over custody of the cash from the
employees (i.e., assistants, Senior Assistants, Tellers, SWOs, etc.) and will arrange to turn it into
the vault in the manner stated below:

i. The note packets, for which the recounting responsibility rests with the Cash Officer /Special
Assistant (i.e., note packets of Rs.500 and above), will be taken over by him after recounting and
signing on the note slips in the manner detailed here.
ii. Cash Officer will ensure that the packets received from the employees bear the note slips signed
by that employee and which are bearing the current days date.
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iii. He will ensure that the seals on note packets of all denominations taken over by him are intact.
Special care must be taken to scrutinise the portion of the note slip immediately below the
transparent seals. There should be no tear or any mark of tampering on any of the note slips. If he
finds that the seal on any of the note packets has been tampered with or the note slip is torn, he
will not accept such packet unless a fresh packet is properly prepared and duly signed on its
covering note slip.

iv. If the note slip on the packet has not been signed by an employee, he will cause it to be signed
by the concerned employee or any other employee, after doing the needful. If any note packet is
turned into the vault without an employee's signature thereon, the Cash Officer will be deemed to
have prepared the packet himself and will be held responsible for quality and quantity of notes
contained in such packets.

v. The Cash Officer will ensure that each complete bundle of note packets to be lodged into the
vault contains ten note packets. The fractional bundles of soil /non-issuable note packets need to
be stored separately and converted into complete bundles at the earliest opportunity.

2. The Cash Officer is authorised to verify cash with the Assistants (Cash), tellers, etc. to ensure
that they do not carry any excess cash at any time during the day. They should, to that end carry
out 'intra-day’ verification of cash at the cash counters at irregular intervals. The 'intra-day' cash
verification may be used to curb tendency of some of the employees to pocket cash without
accounting the same in the Bank's books. Such verification should be earned out in a judicious
manner so as to have an exemplary effect on the morale of the staff working at the branch and at
the same time not affecting the customer service at the cash counters. The periodicity of
verification is twice in a week at irregular intervals. A suitable record of all such verifications should
be maintained by the Cash Officer in a Register with the columns mentioned below. The Register
should be scrutinised by the Controllers during their visits to the branch. Any omissions /lapses
revealed during such verifications should be advised by special report to the Controlling Authority.
From 01.04.2019 onward Intra Day Cash Verification Register will be maintained as e-register.

Date, Time, Name of the Employee & Designation whose cash is verified. Name of the Cash
Officer and other officer carrying /witnessing the verification. Details of findings /observations,
Signature of the Employee involved. Signature of the Cash Officer & the witnessing officers.
Signature of Accountant / Accounts Manager /Branch Manager.

Bank Cash Balance

1. The particulars of the Bank Cash Balance at the close of business each day will be recorded in
the Cash Balance Book, duly bifurcated into 'Single Custody’ and Joint Custody. The entries in the
Cash Balance Book, will be checked and signed by the Cash Officer and by the Joint Custodian,
after he has compared the items of the Joint Custody’ balance with the Cash Analysis Book and
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the Uncurrent Coin Register and the total with the Vault Register. The Single Custody' balance,
which need be held by the Cash Officer under his lock and key will be kept as low as possible.
The Cash Officer will be responsible for the Branch Cash Balance held in his single custody.
2. The Joint Custodian must ensure that the total of single and joint custody portions in the Cash
Balance Book agrees with the closing Branch Cash Balance arrived at in the Cash Officer's Jotting
Book. The currency chest branches should work out and keep very small closing Cash Balance,
the whole of which should be held in the single custody of the Cash Officer.
3. The Joint Custodian will satisfy himself each evening that the Joint Custody' balance
corresponds exactly with the entries in the Cash Balance Book. He will also check one or more
items in the Cash Officer's hand balance and initial against the items checked in the Cash Balance
Book. At least once a week on different days, he will check the whole of the Bank Cash Balance
and evidence such check in the Branch Cash Balance Book.
4. The Cash Balance will ordinarily consist of nothing but notes and coins. In the event of any cash
payment being made or any cash deposit being received after the cash books have been closed,
the relative vouchers must be entered under the following day’s date and recorded in the Cash
Balance Book. Any deviation from this instruction will he regarded as a serious offence.
5. Before taking notes and coins into the currency chest (at the currency chest branches) and into
the “joint custody" balance (at the non-currency chest branches), the Joint Custodian will check
their correctness in the following manner:
i. He will personally verify and confirm that each complete note bundle being turned into the vault
contains 10 packets of notes of the same denomination. He will likewise verify and confirm the
number of packets in the fractional bundles (i.e., bundles containing less than 10 packets), if any.
Loose note packets if any, should be verified to ensure that they have been duly secured as per
the prescribed procedure. He will also confirm that the soiled notes being turned into the vault
have been duly sealed into bundles.
ii. He will have all bags of rupee coins weighed in his presence and a number of bags emptied to
confirm that the contents are genuine coins and that they contain denomination slips duly signed
by the Assistants counting the bags. Out of a portion of the bags he will take and count a few
pieces and have the remainder counted in front of him so as to confirm the contents in such bags.
He will occasionally have a similar check in respect of other small coins and un-current coins.

6. Shortage in the Cash Balance

Any shortage in the Cash Balance should be recovered the same day in accordance with the
accountability criteria laid down in that behalf. In all cases when the amount of shortage cannot be
recovered in full from the concerned employee /official, any shortfall during the course of day-to-
day transactions till the appropriate account can be debited should be debited to BRANCH
SUSPENSE - SHORTFALLS A/c Number -98730. Occasion for passing entry (ies) in this account
would be rare and reasons for parking to be critically examined before decision is taken. All
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shortages, whether recovered the same day or not, must be immediately reported in writing to the
Controlling Authority and their detailed instructions sought. The Controlling Authority may sanction
to the defaulting employee /official a demand loan, on merits of each case, repayable in suitable
installments. On receipt of such sanction, the relative entry in the Suspense A/c will be adjusted
from the amount of the demand loan granted to fire concerned employee /official.

Excess in the Cash Balance

✓ Any excess in the Cash Balance must be credited the same day to Sundry Deposits Account
as on the following working day's date.
✓ The relative credit voucher being prepared and signed by the authorized supervising official
and entered in the Cash Balance Book.
✓ The refunds from such amounts may be permitted early with the prior approval of the
Controlling Authority unless the amount falls within the discretionary powers vested in the Branch
Manager.
✓ A suitably ruled register should be maintained to record all excesses and shortages under
authentication of the Cash Officer and the Joint Custodian.
✓ The BM or the Manager (Accounts), if any, should periodically peruse this register and initiate
appropriate measures, where-ever- necessary, to reduce such occurrences.

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General Banking- KYC, AML-CFT Guideline, FATCA, CRS

AML/KYC GUIDELINES

Global Institutions in AML/CFT

The FATF The Financial Action Task Force (FATF) is an inter-governmental body established in
1989 on the initiative of the G7 to develop policies to combat money laundering. In
2001, its mandate was expanded to include terrorism financing. Currently it had 39
members. The objectives of the FATF are to set standards and promote effective
implementation of legal, regulatory, and operational measures for combating money
laundering, terrorist financing and other related threats to the integrity of the
international financial system. The FATF Forty Recommendations on Money
Laundering and nine Special Recommendations on Terrorism Financing set the
international standard for anti-money laundering measures and combating the
financing of terrorism and terrorist acts. 200 countries and jurisdictions committed to
implementing them. The FATF Secretariat is located at the OECD headquarters
in Paris, India is a member of the organization since June 2010.

FATF-Style Nine FSRBs have been established for the purpose of disseminating international
Regional standards of FATF throughout the world. The main task of the regional bodies is to
Bodies devise systems for combating money laundering and terrorist financing in their
respective regions. India is a member of APG (Asia Pacific Group) on Money
Laundering and EAG (The Eurasian Group on Combating Money Laundering and
Financing of Terrorism).

The Wolfsberg It is an association of thirteen global banks which aims to develop frameworks and
Group guidance for the management of financial crime risks, particularly with respect to Know
Your Customer, Anti-Money Laundering and Counter Terrorist Financing policies. The
Group came together in 2000, at the Château Wolfsberg in north-eastern Switzerland,
to work on drafting anti-money laundering guidelines for Private Banking.

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The Egmont It is a united body of 155 Financial Intelligence Units (FIUs). The Egmont Group
Group provides a platform for the secure exchange of expertise and financial intelligence to
combat money laundering and terrorist financing

The Legal Framework for AML/CFT in India

The Prevention of Money Laundering Act, 2002, sections 15, 17, 40 of the Unlawful Activities
(Prevention) Act, 1967 (UAPA), as amended in 2004 and 2008, Guidelines issued by RBI for the
banking sector, IRDA for the Insurance Sector and SEBI for the Capital Markets. The Prevention of
Money-laundering Act, 2002 is an Act of Parliament to prevent money laundering and to provide for
confiscation of property derived from or involved in money laundering and for matters connected
therewith or incidental thereto. PMLA and the Rules notified there under came into force with effect from
July 1, 2005

Bank’s Obligations under PMLA, 2002

Since the Bank is a Reporting Entity, Section 12 under Chapter IV and the PML (Maintenance of
Records) Rules 2005, give rise to certain obligations which the bank must fulfil, which are as follows: (a)
Maintain a record of all transactions, including information relating to transactions covered under clause
(b), in such manner as to enable it to reconstruct individual transactions. (b) Furnish to Director within
such time as may be prescribed, information relating to such transactions, whether attempted or
executed, the nature and value as may be prescribed. (c) Verify the identity of its clients in such manner
and subject to such conditions as maybe prescribed. (d) Identify the beneficial owner, in any, of such of
its clients, as may be prescribed. (e) Maintain record of documents evidencing identity of its clients and
beneficial owners as well as account files and business correspondence relating to its clients. Similarly,
the PML (Maintenance of Records) Rules 2005 delineate the rules for maintenance of records of the
nature and value of transactions, the procedure and manner of maintaining and time for furnishing
information and verification of records of the identity of the clients of the banking companies, financial
institutions, and intermediaries. For instance,

➢ Rule 3 of the PML Rules specifies the transactions, the records of which are to be maintained. Rule
7 of the PML Rules prescribes the procedure and manner of furnishing information, including an
obligation to evolve an internal mechanism for detecting the prescribed transactions.

➢ Rule 8 of the PML Rules prescribes the time of furnishing such information and

➢ Rule 9 of the said Rules prescribes the procedure and manner of verification of records of identity of
client.

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Money laundering

Process by which criminals disguise the original ownership and control of the proceeds of crime, by
making such proceeds appear to have been derived from a legitimate source. Money Laundering may
be broken down into three distinct stages Placement, Layering & Integration

Placement: The money launderer introduces illegal profits into the financial system by
breaking up large amounts of cash into less conspicuous smaller sums that
are then deposited directly into a bank account, or by purchasing a series of
monetary instruments (cheques, money orders, etc.) that are then collected
and deposited into accounts at another location.

Structuring: This is a method of placement, also known as smurfing. This is the act of
breaking a large financial transaction into a series of smaller transactions to
avoid scrutiny by regulators and law enforcement agencies.

Layering: The launderer engages in a series of conversions or movements of the funds

to distance them from their source. The funds might be channelled through the
purchase and sales of investment instruments, or the launderer might simply
wire the funds through a series of accounts at various banks across the globe
often disguising the transfers as payments for goods or services, thus giving
them a legitimate appearance.

Integration It is the final stage of money laundering in which the laundered funds are
accumulated and re-introduced in the legitimate economy. The money
launderer might choose to invest the funds into real estate, luxury assets, or
business ventures etc.

Financing of Terrorism

It involves the solicitation, collection or provision of funds both from legal and illicit sources, with the
intention of supporting terrorist acts or organizations that support terrorism. It is important to note that in
the case of money laundering, the funds are always of illicit origin, whereas in the case of terrorist
financing funds can originate from both legal and illicit sources.

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The primary goal of individuals or entities involved in the financing of terrorism is, therefore, not
necessarily, to conceal the sources of the money but to conceal both the financing and the nature of the
financed activity.

PMLA, 2002

The Prevention of Money Laundering Act, 2002 is an Act of Parliament to prevent money-laundering
and to provide for confiscation of property derived from or involved in money-laundering and for
matters connected therewith.

Important Sections of PMLA Act

Section 2 Definitions

Section 3 Offence of money-laundering

Section 4 Punishment for money-laundering.

Section 12 Reporting entity to maintain records.

Section 15 Procedure and manner of furnishing information by reporting entities.

Money Laundering Offence.

Whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is

actually involved in any process or activity connected with proceeds of crime including its concealment,
possession, acquisition or use and projecting or claiming it as untainted property shall be guilty of
offence of money-laundering. The minimum punishment in case of money laundering is 3 years and the
maximum punishment is restricted to 7 years. There is an exception where some of the criminals may
be punished with 10 years of imprisonment. The court will also impose a penalty of up to Rs 5 Lakh in
such a case.

Proceeds of Crime

Proceeds of crime means any property derived or obtained, directly or indirectly, by any person as a
result of criminal activity relating to a scheduled offence or the value of any such property. Sec (2) (u)
of PML Act 2002

Scheduled Offence

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Offence specified under Part A or Part C of the Schedule of the PMLA, 2002. Sec (2) (y) of PML Act
2002.

Predicate Offence

Offence whose proceeds may become the subject of any of the money-laundering offences. Every
Scheduled Offence is a Predicate Offence.

Reporting Entity (RE)

A banking company, financial institution, intermediary or a person carrying on, a designated business
or profession

Client

Section 2 (ha) of PMLA, 2002 states that “Client” means a person who is engaged in a financial
transaction or activity with the Bank and includes a person on whose behalf the person who is engaged
in the transaction or activity, is acting.

Bank’s Obligations under PMLA, 2002

a. Maintain a record of all transactions

b. Furnish to Director, FIU-IND, and information relating to such transactions, whether attempted or
executed, as prescribed.

c. Verify the identity of its clients.

d. Identify the beneficial owner, as prescribed.

e. Maintain record of documents evidencing identity of its clients and beneficial owners, account files
and business correspondence relating to its clients.

The records referred to in (a) shall be maintained for a period of five years from the date of
transaction .The records referred to in clause (e) shall be maintained for a period of five years
from the date of ‘Cessation of Relationship’ (account has been closed)

FIU-IND

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The Financial Intelligence Unit-India was set up by the Government of India in 2004 as the central
national agency responsible for receiving, processing, analysing and disseminating information relating
to suspect financial transactions. FIU-IND is not a regulatory authority. Its prime responsibility is to
gather and share financial intelligence in close cooperation with the regulatory authorities including RBI,
SEBI and IRDA. The FIU-IND reports to the Economic Intelligence Council (EIC) headed by the Finance
Minister. The FIU-IND is headed by DIRECTOR FIU-IND and assisted by Additional Directors/Joint
Directors/Deputy Directors and others.

Directorate of Enforcement (DOE)

It is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance,
GOI, which enforces the following laws: Foreign Exchange Management Act, 1999 and PMLA Act 2002.

FEMA

A Civil Law, with officers empowered to conduct investigations into suspected contraventions of the
Foreign Exchange Laws and regulations, adjudicate contraventions and impose penalties on those
adjudged to have contravened the law.

Designated Director

According to Rule 2 of the PML (Maintenance of Records) Rules 2005, Designated Director means a
person designated by the RE to ensure overall compliance with the PMLA guidelines. He shall be
nominated by the Board. MD (R, C & SARG) is the Designated Director in our Bank

Principal Officer

Officer designated by a Reporting Entity for the purpose of Section 12 of PMLA, 2002. “Banks should
ensure that the Principal Officer is able to act independently and report directly to the senior
management or to the Board of Directors. GM (AML-CFT), Jaipur is the Principal Officer in our Bank

Money Laundering Methods

Money laundering through Shell Companies; through Money Mules; through early repayment of long-
term Loans; through accounts of NGOs/NPOs; through TBML; through Ponzi Schemes etc

TBML (Trade Based Money Laundering)

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According to Financial Action Task Force (FATF) “TBML is the process of disguising the proceeds of
crime and moving value using trade transactions to legitimize their illicit origins.” Moreover, TBML is
one of the main methods by which criminal organizations and terrorist financiers move money for
disguising its origins and integrating it back into the formal economy.

Some commonly used techniques of Money Laundering through TBML

Over-invoicing (Short shipping) Misrepresentation of the price of the good or service by increasing
it above the 'fair market' price through which exporter is able to
receive additional value from the importer and also gains significant
export tax credit rebate benefit.

Under-invoicing (Over-shipping) Misrepresentation of the price of the good or service by lowering it

below the 'fair market' price through which exporter is able to
transfer additional value to the importer and also gains significant
tax benefit.

Multiple invoicing / financing Sending multiple payments to multiple bank accounts using the
same documentation.

Phantom or Ghost Shipment Creating document for non-existent shipment i.e., where goods
were never exported or imported.

Variable Pricing/Transfer Pricing By adjusting pricing in documentation than change physical

volume/weight.

Mis-declaration of goods Misrepresenting the quality or type of the good, vague or technical
description of goods.

Carousel Fraud A circular transaction or round tripping by Importing goods from non-
VAT country, selling it in importing country by adding VAT and not
paying VAT to the government.

Capital Flight Entities with liquid assets or “proceeds of corruption and crime”
move asset value to offshore locations.

Fake Trade Finance Instruments LC utilization to move illicit/restricted goods and commodities,
shipment to high-risk countries/of high-risk goods, circulation of fake
LC.

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Transfer Pricing through Trade Resorted to with aim to reduce tax liabilities by businesses through
structured trade transactions. Businesses transfer surplus revenue
to overseas subsidiary, many a times in tax heaven countries by
constant movement of components and inputs between related
party businesses.

Fraudulent alteration of the Bill to get payment for non-existent cargo

of Lading

Smuggling / shipment of In guise of actual goods.

counterfeits goods

RBI Master Directions (KYC), 2016 as amended on 10.05.2021 provide that

a. REs shall carry out ‘Money Laundering (ML) and Terrorist Financing (TF) Risk Assessment’ exercise
periodically to identify, assess and take effective measures to mitigate its money laundering and terrorist
financing risk for clients, countries or geographic areas, products, services, transactions or delivery
channels, etc. The assessment process should consider all the relevant risk factors before determining
the level of overall risk and the appropriate level and type of mitigation to be applied. While preparing
the internal risk assessment, REs shall take cognizance of the overall sector-specific vulnerabilities, if
any, that the regulator/supervisor may share with REs from time to time.

b. The risk assessment by the RE shall be properly documented and be proportionate to the nature,
size, geographical presence, complexity of activities/structure, etc. of the RE. Further, the periodicity of
risk assessment exercise shall be determined by the Board of the RE, in alignment with the outcome of
the risk assessment exercise. However, it should be reviewed at least annually.

The RBI Master Direction - Know Your Customer (KYC) Directions, 2016

In exercise of the powers conferred by Sections 35A of the Banking Regulation Act, 1949, the Banking
Regulation Act, 1949, read with Section 56 of the Act ibid, Rule 9(14) of Prevention of Money-Laundering

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(Maintenance of Records) Rules, 2005 and all other laws enabling the Reserve Bank in this regard, the
Reserve Bank of India being satisfied that it is necessary and expedient in the public interest to do so,
has issued the Directions to be followed by Regulated Entities.

The Policy Framework in SBI

KEY ELEMENTS OF THE POLICY: 1. Customer Acceptance Policy; 2. Risk Management; 3.

Customer Identification Procedures (CIP); and 4. Monitoring of Transactions

Guidelines governing the Name Screening Process

As per RBI directions REs shall ensure that in terms of Section 51A of the Unlawful Activities
(Prevention) (UAPA) Act, 1967, they do not have any account in the name of individuals/entities
appearing in the lists of individuals and entities, suspected of having terrorist links, which are approved
by and periodically circulated by the United Nations Security Council (UNSC).

The details of the two lists are as under: (a) The “ISIL (Da’esh) & Al-Qaida Sanctions List”, which
includes names of individuals and entities associated with the Al-Qaida. (b) The “1988 Sanctions List”,
consisting of individuals (Section A of the consolidated list) and entities (Section B) associated with the
Taliban and also there are different watch lists.

Process to be followed in case
of Positive Match
In case, the particulars of any of their customers match with the
particulars of designated individuals/entities, the branch through its
controllers/AML CFT Department shall immediately, not later than
24 hours from the time of finding out such customer, inform full
particulars of the funds, financial assets or economic resources,
held by such customer to the 1. Joint Secretary (CTCR), Ministry of
Home Affairs and also on e-mail id: jsctcrmha@gov.in.

2. UAPA nodal officer of RBI, viz. The Chief General Manager,

DBOD, RBI, AML Division through email cgmaml@rbi.org.in.

3. UAPA nodal officer of the state/UT where the account is held.

4. FIU-India.

Name Screening: Operating Guidelines for AML/CFT Cell

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On day T+1, the AML/CFT Department is provided with a list of customers for whom alerts were
generated at the branches on day T. In case of any adverse findings, the matter is promptly brought to
the notice of the controller and STR is filed for the cases where a name matching is observed

At half yearly intervals (30th September and 31st March) scrubbing of the entire customer base against
the negative lists is done by the AML/CFT Department. STRs are filed against customers matching with
the entities in the negative lists and the Controller/MLRO/AGM (S&I) of respective circles are advised
for taking necessary steps as per the extant regulatory guidelines.

The AML/CFT Department analyses the requirement of additional negative lists required for name
screening purpose and advise the IT Department, for uploading in the system.

News pertaining to money laundering and financial crimes are analysed by the AML/CFT Department
by going through various reputed newspapers (hard copy), news apps on mobile and online news
portals, news items sent by different offices in the circles. The names of the accused appearing in these
news items are scanned to find out any matches in bank’s database. STR is filed on the customer who
appears to match with the accused person/entity mentioned in the news items. The circles are then
advised to conduct due diligence in the concerned accounts based on the findings.

Latest circular on SOP of Name screening process - Circular No.: AML-CFT/AML-

CFTMEASURES/2/2022 – 23 dt 06.10.2022

RBI Guidelines on Risk Based Approach & Customer Risk Categorization

a) Customers shall be categorized as low, medium and high-risk category, based on the assessment
and risk perception of the RE.

b) Risk categorisation shall be undertaken based on parameters such as customer’s identity,

social/financial status, nature of business activity, and information about the clients’ business and their
location etc. Further, review of risk categorization is to be undertaken at least once in six months, as
mandated by RBI, which is possible through an automated process only considering the large customer
base of the bank. 35 High Risk countries have been identified based on the FATF recommendations on
its website and also in consideration of AML/ CFT status of other jurisdictions and tax havens.

These categories are as under:

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1. Customer Type 2. NRI Customer 3. Business Activity

4. Occupation 5. Country Risk 6. Location

7. Account Age 8. Account Status 9. STRs filed with FIU-IND

10. Social Financial Status 11. Turnover 12. Branch Risk Categorizations

13. Export Import Customer 14. Politically Exposed

Persons

CRC Exercise at Branch: Operating Guidelines

Risk Category Number Assigned to the Number Assigned to the Category in

Category in AMLOCK CBS

LOW RISK 1 0

MEDIUM RISK 2 1

HIGH RISK 3 2

After going through the AOF at on-boarding stage, filled in by the applicant and the customer profile
entered in CBS, the account opening official considers the following six elements of customer/account
profile to arrive at the risk category of the customer and proceeds as stated:

1. Customer Type 2.Occupation Type 3.Country Risk 4.Location 5.Politically Exposed Person
(PEP) 6.Product Type

MLRO

The primary responsibility of ensuring implementation of KYC/AML/CFT Policy and related guidelines
will be vested with the respective Business Groups/Circles/BUs. For this purpose, each Business
Group/Circle/SBU shall designate an official as Money Laundering Reporting Officer (MLRO) who would
ensure proper implementation and reporting, as per provisions of this Policy, to the Principal Officer. In
the Circle CFO is designated as MLROs.

Dy. MLRO

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Dy. General Manager (Business & Operations) of AOs & direct branches is designated as Dy. MLRO.

Assistant MLROs

AGM (RBOs)/ Branch Heads / Heads of CPCs are designated as Assistant MLROs. The responsibility
for reporting STRs/CCRs in respect of transactions passing through their units as well as transactions
routed through the accounts having their branch/office as home branch will lie with the Assistant MLROs.
They shall report through their respective Dy. MLROs to the MLRO of the Circle/Business
Group/Business Unit, who in turn, will escalate the matter to the Principal Officer (AML/CFT) at
Corporate Centre, if required.

Reporting System for Domestic Offices

All reporting of CTRs, STRs, CCRs, NTRs and Report on Cross Border wire Transfers to FIU- IND will
be done only by the Principal Officer (AML/CFT).

Reporting System for foreign Offices

(a) Individual cash withdrawals and deposits for US$ 10,000/- and above or the threshold prescribed
by the Regulators for cash transactions are to be closely monitored and reported as per the host country
regulatory requirements. (b) The Suspicious Activity Reporting (SAR) to the Regulatory or the concerned
authority shall be done by the Money Laundering Reporting Officer (MLRO), for which each foreign
office will designate an officer as MLRO. The branches situated in the Financial Action Task Force
(FATF) countries should also implement the recommendations of FATF implementation of KYC /AML

Sale of Third-Party Products

(a) The identity and address of the walk-in customer shall be verified for transactions above rupees fifty
thousand.

(b) Transaction details of sale of third-party products and related records shall be maintained as
prescribed.

(c) AML software capable of capturing, generating and analysing alerts for the purpose of filing CTR/STR
in respect of transactions relating to third party products with customers including walk-in customers
shall be available.

(d) Transactions involving rupees fifty thousand and above shall be undertaken only by:

• debit to customer’s account or against cheques, and

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• obtaining and verifying the PAN given by the account based as well as walk-in customers.

(e) Instruction at ‘d’ above shall also apply to sale of Bank’s own products, payment of dues of credit
cards/sale and reloading of prepaid/travel cards and any other product for rupees fifty thousand and
above.

Video based Customer Identification Process (V-CIP)”

It is a method of customer identification by an official of the RE by undertaking seamless, secure, real-

time, consent based audio-visual interaction with the customer to obtain identification information
including the documents required for CDD purpose, and to ascertain the veracity of the information
furnished by the customer. Such process shall be treated as face-to-face process of CIP.

The audio-visual interaction shall be triggered from the domain of the RE itself, and not from third party
service provider, The activity log along with the credentials of the official performing the V-CIP shall be
preserved

Branches / offices shall undertake Customer Identification in the following cases-

a. While establishing an account-based relationship.

b. Carrying out any international money transfer operations for a person who is not an account holder
that is a Walk-in customer.

c. When the Branch / Office has a doubt about the authenticity or adequacy of the customer identification
data it has obtained.

d. Selling of third-party products as agents, selling our own products, payment of dues of credit
cards/sale and reloading of prepaid/travel cards and any other product for more than Rs. 50,000/-

e. Carrying out transactions for a non-account-based customer, that is a walk-in customer, where the
amount involved is equal to or exceeds rupees fifty thousand, whether conducted as a single transaction
or several transactions that appear to be connected.

f. When the Bank has reason to believe that a customer (account based or walk- in) is intentionally
structuring a transaction into a series of transactions below the threshold of rupees fifty thousand.

Unique Customer Identification Code (UCIC)

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(a) While entering into new relationship with individual customers and the existing customers in our
Bank, a Customer Identification File (CIF) number shall be allotted. All the accounts of the same
customer are tagged to the CIF. A CIF is the Unique Identification Code, and a customer should not be
allotted more than one CIF.

Reliance on third party due diligence

(a) Records or the information of the customer due diligence carried out by the third party is obtained
within two days from the third party or from the Central KYC Records Registry. (b) Adequate steps are
taken by Branches/Business Units to satisfy themselves that copies of identification data and other
relevant documentation relating to the customer due diligence requirements shall be made available
from the third party upon request without delay. (c) The third party is regulated, supervised or monitored
for, and has measures in place for, compliance with customer due diligence and record-keeping
requirements in line with the requirements and obligations under the PML Act. (d) The third party shall
not be based in a country or jurisdiction assessed as high risk. (e) The ultimate responsibility for
customer due diligence and undertaking enhanced due diligence measures, as applicable, will be with
the Branches/ Business Units.

Customer Information in case of an Individual Rule 9 (4) of PML Rules-2005

For establishing an account-based relationship or while dealing with the individual who is a beneficial
owner, authorised signatory or the power of attorney holder related to any legal entity, following
documents/ information shall be obtained from the individual

a. List of the Officially Valid Documents (OVD’s) is as under- i. Passport, ii. Driving license, iii. Proof of
possession of Aadhaar Number,

iv. Voter's Identity Card issued by Election Commission of India,

v. Job card issued by NREGA duly signed by an officer of the State Government,

vi. Letter issued by the National Population Register containing details of name and address.

b. Permanent Account Number (PAN) or the equivalent e-document thereof or Form No. 60 (except in
case of small accounts).

While the customer may submit any one of the OVDs mentioned above, the Aadhaar number may be
obtained only under the following circumstances: i. The customer is desirous of receiving any benefit or
subsidy under any scheme notified under section 7 of the Aadhaar (Targeted Delivery of Financial and
Other subsidies, Benefits and Services) Act, 2016 (18 of 2016) or ii. The Customer submits his Aadhaar
number voluntarily for the purposes of identification. E-KYC authentication is mandatory for customers
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who are desirous of using the accounts for the purpose of receiving Direct Benefit Transfer (e.g.,
subsidy). E-KYC authentication may be carried out in other cases also, provided the customer has
voluntarily agreed to undergo authentication.

Branches should report the cases where biometric e-KYC authentication cannot be performed
for an individual, desirous of receiving any benefit or subsidy under any scheme notified under
section 7 of the Aadhaar (Targeted Delivery of Financial and Other subsidies, Benefits and
Services) Act 2016 owing to injury, illness or infirmity to KYC Department and their Controllers
in the format given as per circular by email at dgm.kyc@sbi.co.in & agm.kyc@sbi.co.in
immediately for each such approval in addition to maintaining record of the same in a separate
register so that periodic internal audit/ inspection can be done at apex level also for compliance.

If the OVD furnished by the customer does not contain updated address, the following documents or the
equivalent e-documents thereof shall be deemed to be OVDs for the limited purpose of proof of address:

i. Utility bill which is not more than two months old of any service provider (electricity, LL telephone,
post-paid mobile phone, piped gas, water bill).

ii. Property or Municipal tax receipt.

iii. Pension or family pension payment orders (PPOs) issued to retired employees by Government
Departments or Public-Sector Undertakings if they contain the address.

iv. Letter of allotment of accommodation from employer issued by State Government or Central
Government Departments, Statutory or regulatory bodies, public sector undertakings, scheduled
commercial banks, Financial Institutions, listed companies and lease and license agreements with such
employers allotting official accommodation.

Provided that

i. the customer shall submit OVD updated with current address within a period of three months of
submitting the above documents

ii. If the customer, at the time of onboarding, voluntarily provides Aadhaar number for identification
purpose, and wants to provide current address different from the address contained in Aadhaar records,
a self-declaration may be obtained from the customer to that effect and such current address may be
entered in CBS. Further, Branches /Business Units shall ensure that Aadhaar authentication/ offline
verification is done in all such cases without fail

Digital KYC

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Digital KYC” means the capturing live photo of the customer and officially valid document or the proof
of possession of Aadhaar, where offline verification cannot be carried out, along with the latitude and
longitude of the location where such live photo is being taken by an authorised officer of the RE as per
the provisions contained in the Act. The customer, for the purpose of KYC, shall visit the location of the
authorized official of the RE or vice-versa. The original OVD shall be in possession of the customer. The
RE must ensure that the Live photograph of the customer is taken by the authorized officer and the
same photograph is embedded in the Customer Application Form (CAF). Further, the system Application
of the RE shall put a watermark in readable form having CAF number, GPS coordinates, authorized
official’s name, unique employee Code (assigned by REs) and Date (DD:MM:YYYY) and time stamp
(HH:MM:SS) on the captured live photograph of the customer.

Small Accounts

Small Account: In case an individual customer who does not have OVD and PAN and desires to open
a bank account, then “Small Account” may be opened. Branches/Business Units while opening Small
accounts will obtain a self- attested photograph of the customer. The authorised officer under his
signature will certify that the person opening the account has affixed his signature or thumb impression
in his presence. However, if the customer is a prisoner in a jail, the signature or thumb print shall be
affixed in presence of the officer in-charge of the jail and the said officer shall certify the same under his
signature. The account shall remain operational initially for a period of twelve months which can be
extended for a further period of twelve months, provided the account holder applies and
furnishes evidence of having applied for any of the OVDs during the first twelve months of the
opening of the said account. If the customer is a prisoner in a jail, the account shall remain operational
on annual submission of certificate of proof of address issued by the officer in-charge of the jail. The
aggregate of all credits in a financial year does not exceed rupees one lakh; the aggregate of all
withdrawals and transfers in a month does not exceed rupees ten thousand; and the balance at any
point of time does not exceed rupees fifty thousand [These limits do not apply to deposits through
Government grants, welfare benefits and payment against procurements]. Foreign remittances cannot
be credited to Small Accounts without completing normal KYC formalities.

Customer due diligence in case of Non-Individuals

Sole Proprietary Firms In addition to the identification of the proprietor/beneficial owner, any
two of the following documents or as a proof of business activity in
the name of the proprietary firm shall be obtained.

1. Registration certificate (in the case of a registered concern),

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2. Certificate/license issued by the Municipal authorities

under Shop & Establishment Act,
3. Sales and Income Tax returns,
4. CST/VAT /GST certificate (provisional/final),
5. Certificate/Registration document issued by Sales
Tax/Service Tax/Professional Tax authorities,
6. IEC (Importer Exporter Code) issued to the proprietary
concern by office of DGFT/License/Certificate of practice
issued in the name of the proprietary concern by any
professional body incorporated under a statute.
7. The complete Income Tax Return (not just the
acknowledgement) in the name of the sole proprietor where
the firm’s income is reflected duly authenticated/
acknowledged by the Income Tax authorities.
8. Utility bills such as electricity, water and landline telephone
bills in the name of the proprietary concern.

In cases where the Bank is satisfied that it is not possible for the
Proprietary concern to furnish two documents, the Branches can
exercise the discretion and accept only one of the above documents
as activity proof. In such cases, a ‘contact point verification’ has to
be undertaken, and the Branches should satisfy themselves that
business activity has been verified from the address of the
proprietary concern. The record of such contact point verification
should be placed along with the AOF and other KYC documents.

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Companies a)Certificate of Incorporation; b) Memorandum and Articles of

Association; c) PAN of the company; d) A resolution from the Board
of Directors and power of attorney granted to its managers, officers
or employees to transact on its behalf; and e) One copy of OVD,
containing details of his identity and address one recent photograph
and PAN or equivalent e-document thereof or Form 60, as
applicable for an individual, in respect of beneficial owners,
managers, officers or employees holding an attorney to transact on
its behalf.

In case a company is listed on a stock exchange, or is a subsidiary

of such a company, it is not necessary to identify and verify the
identity of any shareholder or beneficial owner of such companies.

Partnership Firms i. Registration Certificate; ii. Partnership deed; and

iii. PAN of the Partnership firm, iv. One copy of OVD, containing
details of his identity and address one recent photograph and PAN
or equivalent e-document thereof or Form 60, as applicable for an
individual, in respect of beneficial owners, managers, officers or
employees holding an attorney to transact on its behalf.

Trusts/Foundations i. Registration certificate; ii. Trust deed; iii. PAN/Form 60 of the

Trust/Foundation, iv. One copy of OVD, containing details of his
identity and address one recent Photograph and PAN or equivalent
e-document thereof or Form 60, as applicable for an individual, in
respect of Beneficial owners, managers, officers or employees
holding an attorney to transact on its behalf.

Unincorporated Associations of 1. Resolution of the managing body of such association or body

Individuals of individuals.
2. PAN or Form 60 of the Unincorporated Association or a Body
of Individuals
3. Power of attorney granted to him to transact on its behalf.
4. Copy of OVD, containing details of his identity and address,
one recent photograph and PAN or equivalent e-document
thereof or Form 60, as applicable for an individual, in respect

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of managers, officers or employees holding an attorney to

transact on its behalf, and
5. Such information as may be required to collectively establish
the legal existence of such an association or body of
individuals.
Explanation 1: Unregistered trusts/partnership firms shall be
included under the term ‘unincorporated association’. ii.
Explanation 2: Term ‘body of individuals’ includes societies.

Hindu Undivided Family
i. Declaration from the Karta, ii. PAN OR Form 60 of the HUF, iii.
One copy of OVD, containing details of his identity and address, one
recent photograph and PAN or equivalent e-document thereof or
Form 60, as applicable for an individual, of the Karta, and iv.
Prescribed Joint Hindu Family Letter signed by all the adult
coparceners.vi. Identity of all coparceners

Accounts of Juridical Persons 1. Document showing name of the person authorized to act on
(Government or its Departments, behalf of the entity.
societies, universities and local 2. Copy of OVD as proof of identity & address and PAN or
bodies like village panchayats) equivalent e-document there of or Form 60, as applicable for
an individual, and one recent Photograph in respect of the
person holding an attorney to transact on its behalf and
3. Such documents as may be required to establish the legal
existence of such an entity/juridical person.
Accounts of Non-Face to Face Customers

(a) Non- face-to-face customers are those with whom the Branch has not had direct interaction at the
time of opening the account. (b) Certification of all documents presented should be insisted upon
and, if necessary, additional documents may be called for. (c) For NRI customers who opened the
account without visiting the branch, Branches should insist on certification of documents for photo
ID and proof of residence by either of the following. i. Authorised officials of overseas branches of
Scheduled Commercial Banks registered in India, ii. Branches of overseas banks with which Indian
banks have relationships, iii. Notary Public abroad, iv. Court Magistrate, v. Judge, vi. Indian
Embassy/Consulate General in the country where the non-resident customer resides.
Branch/Business Units shall ensure that the first payment is to be effected through the customer's
KYC-complied account with another Bank Branch, for enhanced due diligence of non-face-to-face
customers.

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Politically Exposed Persons and Their Relatives

Politically exposed persons are individuals who are or have been entrusted with prominent public
function in a foreign country, e.g., Heads of States or of Governments, senior politicians, senior
government/judicial/military officers, senior executives of state-owned corporations, important political
party officials, etc. Branches should open such accounts with the approval of controllers in respect of
branches / BPR outfits headed by officials of Junior Management/Middle Management. In respect of
branches / BPR outfits headed by officers of Senior Management and above, such approval should be
accorded by the branch/operating unit head in person. Such accounts should be subjected to enhanced
monitoring on an ongoing basis. The above norms should also be applied to the accounts of the family
members and close relatives of PEPs.

Clients Accounts Opened by Professional Intermediaries

When the bank has knowledge or reason to believe that the client account opened by a professional
intermediary is on behalf of a single client, that client must be identified. Where the Branches / BUs rely
on the ‘customer due diligence’ (CDD) done by an intermediary, they should satisfy themselves that the
intermediary is regulated and supervised and has adequate systems in place to comply with the KYC
requirements. It should be understood that the ultimate responsibility for knowing the customer lies with
the bank.

Self Help Groups

CDD procedure need not be done for all the members of SHG while opening the savings bank account
of the SHG; CDD procedure of the office bearers would suffice. Separate CDD at the time of credit
linking of SHGs is not required (since KYC would have already been verified while opening the savings
bank account) provided the account continues to be in operation and there is no change in office bearers.

Foreign Students Studying in India

(a) Non- Resident Ordinary (NRO) bank account of foreign students may be opened on the basis of
his/her passport (with appropriate visa & immigration endorsement) bearing the proof of identity and
address in the home country along with a photograph and a letter offering admission from the
educational institution in India. b) A declaration should be obtained about the local address within a
period of 30 days of opening the account and the said local address shall be verified. (c) Pending
verification of address, during the 30 days period, the account may be operated with a condition of
allowing foreign remittances not exceeding USD 1,000 or equivalent into the account and a cap of
monthly withdrawal to Rs. 50,000/-. (d) The account would be treated as a normal NRO account and
will be operated in terms of instructions contained in RBI’s instructions on Non-Resident Ordinary Rupee

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(NRO) Account and the provisions of FEMA, 1999. (e) Students with Pakistani nationality will need prior
approval of Reserve Bank of India for opening the account. Explanation: RBI has clarified that in terms
of Section 2(v) of FEMA 1999, definition of a person resident in India does not include a person who
has come to or stays in India for any purpose which would indicate his stay for a definite period.
Accordingly, foreign students coming to India would be considered as “non-resident” and a resident
account shall not be opened for them.

Minors

(a) Minors who can adhere to uniform signature and are not less than ten years old, can open accounts
in their single name. In such cases, KYC procedure for identification /address verification as in case of
any other individual would apply. (b) For minors below the age of 10 years or whose accounts are
operated by Parents/Guardian, Proof of Date of Birth of Minor, Photograph of guardian and KYC of
guardian shall be obtained. (c) Wherever PAN or equivalent e-document thereof of minor is not
available, Form 60 is to be obtained, which shall be signed by Parent/Guardian only. (d) Minors on
attaining majority shall submit their Fresh Photographs, Copy of PAN card or equivalent e-document
thereof or Form 60 along with the appropriate KYC documents.

Individual NRE Accounts

Accounts to be opened on the basis of instructions as applicable for an Individual, further, the following
documents to be obtained: Passport and Visa Copies, duly attested by i. Banker (our Branches/offices)
/. Authorised officials of overseas branches of Scheduled Commercial Banks registered in India, ii.
Branches of overseas banks with which Indian banks have relationships, iii. Notary Public abroad, iv.
Court Magistrate, v. Judge, vi. Indian Embassy/Consulate General in the country where the non-resident
customer resides.

Persons of Indian Origin and Overseas Citizen of India PIOs/OCIs Persons of Indian Origin
(PIO) and Overseas Citizen of India (OCI)

Persons of Indian Origin (PIO) and Overseas Citizen of India (OCI) who are desirous of opening
NRO/NRE/FCNB (B) accounts are required to submit ANY ONE of following documents in addition to
the copy of passport, while opening such accounts. (i) Copy of PIO/OCI Card issued by Govt. of India.
(ii) Copy of relevant pages of passport of parents or grandparents, establishing them as NRI/Indian
origin (iii) Copy of marriage certificate establishing the spouse as NRI/Indian origin.

Central KYC Records Registry (CKYCR)

(a) Central KYC Records Registry (CKYCR) means an entity to receive, store, safeguard and retrieve
the KYC records of a customer in digital form. Government of India has authorized the Central
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Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI), to act as, and
to perform the functions of the CKYCR. (b) Bank is required to file the electronic copy of the
Customer’s KYC records/data (Customer information, Photograph, Signature, KYC Documents) with
the Central KYC Records registry (CKYCR) within 3 days after the commencement of an account-
based relationship with a customer.

Money Mules

Money Mules can be used to launder the proceeds of fraud schemes (e.g., phishing and identity theft)
by criminals who gain illegal access to deposit accounts by recruiting third parties to act as “money
mules.” These accounts are misused for unlawful activities e.g., collecting proceeds of crime, extortion,
cheating etc. The operations of such mule accounts can be minimised by following the guidelines on
opening of accounts and monitoring of transactions.

Wire Transfer

(a) All cross-border wire transfers including transactions using credit or debit card shall be accompanied
by accurate and meaningful originator information such as name, address and account number or a
unique reference number, as prevalent in the country concerned in the absence of account.

(b) Domestic wire transfers of rupees fifty thousand and above shall be accompanied by originator
information such as name, address and account number.

(c) Customer Identification shall be made if a customer is intentionally structuring wire transfer below
rupees fifty thousand to avoid reporting or monitoring. In case of non-cooperation from the customer,
efforts shall be made to establish his identity and STR shall be made to FIU-IND.

(d) The beneficiary bank shall seek detailed information of the fund remitter with the ordering bank and
if the ordering bank fails to furnish information on the remitter, the beneficiary shall consider restricting
or terminating its business relationship with the ordering bank.

Business Correspondents

While functionaries of BC channels will facilitate completion of KYC formalities in respect of accounts
opened through them, primary responsibility of ensuring KYC compliance in respect of all accounts
maintained with it including review of KYC, risk categorization, monitoring of transactions etc. will rest
with the home branch.

Periodic Updation of KYC

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Periodic updation of KYC shall be carried out at least once in every two years for high-risk customers,
once in every eight years for medium risk customers and once in every ten years for low-risk customers.
In case of low-risk customers where there is no change in status with respect to their identities and
addresses, a self-certification to that effect is sufficient In the case of Non personal entities, as per RBI
guidelines, at the time of KYC updation of such CIFs, the documents sought at the time of opening of
account may be reviewed and fresh copies may be obtained.

Beneficial Owners

According to Section 2 (fa) of PMLA, 2002, Beneficial Owner means an individual who ultimately owns
or controls a client of a reporting entity or the person on whose behalf a transaction is being conducted
and includes a person who exercises ultimate effective control over a juridical person.

Company “Controlling ownership interest” means ownership of/entitlement to more

than 25 per cent of the shares or capital or profits of the company.
“Control” shall include the right to appoint majority of the directors or to
control the management or policy decisions including by virtue of their
shareholding or management rights or shareholders agreements or voting
agreements.

Where the customer is a The beneficial owner is the natural person(s), who, whether acting alone
partnership firm, or together, or through one or more juridical person, has/ have ownership
of/ entitlement to more than 15 per cent of capital or profits of the
partnership.

Where the customer is an
unincorporated
association or body of
individuals
The beneficial owner is the natural person (s), who, whether acting alone
or together, or through one or more juridical person, has/ have ownership
of/ entitlement to more than 15 per cent of the property or capital or profits
of the unincorporated association or body of individuals. the beneficial
owner is the relevant natural person who holds the position of senior
managing official.

Trusts The author of the trust, the trustee, the beneficiaries with 15% or more
interest in the trust and any other natural person exercising ultimate
effective control over the trust through a chain of control or ownership

Exemptions

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1. Company listed on a stock exchange, or a subsidiary of such a company,

2. Office accounts,
3. State Govt./Central Govt. accounts,
4. Accounts of Banks
5. Public Sector Undertakings (State/Central Govt.)
Global Link Services Department. Global In respect of foreign inward remittances, risk parameters
Market Unit-Kolkata (GMU-K) and monitoring under Rupee Drawing Arrangements,
Foreign Office’s remittance products involving VOSTRO
a/cs, sanction screening of remitters, and CDD & EDD at
pre- transaction stage will be done by them.

Global Market Unit (Foreign Department), Risk categorization of commercial remittances received
Kolkata. from overseas will be done by them,

KYC Non-Compliant Account

i. Accounts opened with Deemed OVD, but updated OVD is not provided within 3 months. ii. Small
accounts where OVD is not provided within a period of 24 months. iii. Accounts where KYC Updation is
overdue. iv. Accounts found KYC non-compliant on re-examination / audit/ inspections.

Partial Freeze

i. Due notice of one month initially is to be sent by ordinary post/courier to the customer to comply with
the KYC requirements. ii. If the account remains non-compliant even after one month of notice period,
a reminder will be sent to the customer by Registered post with acknowledgement due giving a further
period of one month. Partial freeze is to be imposed after three months from date of first notice, by
allowing all credits but disallowing all debits if the account remains KYC noncompliant.

STRs (Suspicious Transaction Reports)

a) Gives rise to a reasonable ground of suspicion that it may involve the proceeds of crime or b) appears
to be made in circumstances of unusual or unjustified complexity; or c) appears to have no economic
rationale or bonafide purpose; d) gives rise to a reasonable ground of suspicion that it may involve
financing of the activities relating to terrorism

Types of STRs

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System generated STRs These are STRs escalated based on alerts triggered by AML software
system. System generated alerts are critically analysed by the
centralized AML/CFT Department, Jaipur .

Watch List (WL): The customer details matched with watched with
watch lists (e.g., UN list, Interpol list etc.)

Typology (TY): Common typologies of money laundering, financing of

terrorism or other crimes (e.g., structuring of cash deposits etc.)

Transaction Monitoring (TM): Transaction monitoring alert (e.g.

unusually large transaction, increase in transaction volumes etc.)

Risk Management System (RM): Risk Management system-based

alert (e.g., high-risk customer, country, location, source of funds,
transaction type etc.)

The Suspicious Transaction Report (STR) should be furnished within

7 days of arriving at a conclusion that any transaction, is of suspicious
nature

Subjective STRs ✓ Customer Verification (CV): Detected during customer acceptance,

identification or verification

✓ Law Enforcement Agency Query (LQ): Query or letter received from

Law Enforcement Agency (LEA) or Intelligence Agency

✓ Media Reports (MR): Adverse Media Reports about customer (e.g.,

newspaper reports)

✓ Employee Initiated (EI): Employee raised alert (e.g., behavioural

indicators such as customer had no information about transaction,
attempted transaction

✓ Public Complaint (PC): Complaint received from public (e.g., abuse

of account for committing fraud etc.)

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✓ Business Associates (BA): Information received from other

institutions, subsidiaries or business associates.

Branch Head on being satisfied of the suspicious activity/nature of the

transaction / activity logs in the details of the suspicion identified /
attempted transactions in a one- page format and mails to
agm.alerts@sbi.co.in, as an advance copy of the STRs to the
AML/CFT Cell Jaipur.

Walk-in Customers

In case of transactions carried out by a non-account-based customer, that is a walk-in customer, where
the amount of transaction is equal to or exceeds rupees fifty thousand, whether conducted as a single
transaction or several transactions that appear to be connected, the customer’s identity and address
should be verified.

Reporting Requirements of FIU India

In terms of Rule 3 of the Prevention of Money Laundering (Maintenance of Records) Rules, 2005
and in terms of Rule 7 thereof, Bank is required to file following reports to Financial Intelligence Unit-
India (FIU-IND) in respect of transactions mentioned against them: -

1. Cash Transactions Reports (CTRs)- (A) all cash transactions of the value of more than ten lakh
rupees or its equivalent in foreign currency.

(B) all series of cash transactions integrally connected to each other which have been
individually valued below rupees ten lakhs or its equivalent in foreign currency where such
series of transactions have taken place within a month and the monthly aggregate exceeds an
amount of ten lakh rupees or its equivalent in foreign currency

CTR to be filed monthly by 15th day of succeeding month.

2. Counterfeit Currency Reports (CCRs)- all cash transactions where forged or counterfeit currency
notes or bank notes have been used as genuine or where any forgery of a valuable security or a
document has taken place facilitating the transactions.

CCR to be filed monthly by 15th day of succeeding month.

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3. Suspicious Transactions Reports (STRs)- all suspicious transactions whether or not made in cash
and by way of deposits and credits, withdrawals into or from any accounts in whatsoever name they
are referred to in any currency maintained.

STR to be filed as and when detected and within 7 working days on being satisfied that the transaction
as suspicious.

4. Non-Profit Organizations Transactions Report (NTRs)- all transactions involving receipts by non-
profit organisations of value more than rupees ten lakh, or its equivalent in foreign currency. NPO
means any entity or organization that is registered as a trust or a society under the Societies Registration
Act, 1860 or any similar State legislation or a company registered (erstwhile Section 25 of Companies
Act, 1956) under Section 8 of the Companies Act, 2013.

NTR to be filed monthly by 15th day of succeeding month.

5. Cross Border Wire Transaction Reports (CBWTR)- all cross-border wire transfers of the value of
more than five lakh rupees or its equivalent in foreign currency where either the origin or destination
of fund is in India.

CBWTR to be filed monthly by 15th day of succeeding month.

The Principal Officer of a reporting entity shall furnish the information promptly in writing or by fax or by
electronic mail to the Director in respect of Suspicious transactions not later than seven working days
on being satisfied that the transaction is suspicious. In respect of other than Suspicious transactions,
every month to the Director by the 15th day of the succeeding month.

In terms of Rule 8 of PML Rules, while furnishing information to the Director, FIU IND, delay of each day
in not reporting a transaction or delay of each day in rectifying a misrepresented transaction beyond the
time limit specified in the Rule shall constitute a separate violation and hence all reporting should be
done as per the timelines prescribed. As per provisions of PML Act, any deficiency in filing the mandatory
reports by reporting entities will attract minimum penalty of Rs. 10,000/- which may go to Rs.1,00,000/-
per instance per day.

Customer Risk Categorisation as per Social Financial Status

Risk Individual Customers Non-Individual Customers

Low Customers having aggregate Customers having aggregate

credit balance =< Rs 1.50 Cr OR credit balance =< Rs 5 Cr OR
Loans & Advances < Rs.1 Cr Loans & Advances

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(Companies) < Rs.5 Cr,

Other < Rs.2 Cr

Medium Customers having aggregate Customers having aggregate

credit balance > Rs 1.50 Cr& =< credit balance > Rs 5 Cr& =< Rs
Rs 3 Cr OR Loans & Advances > 10 Cr OR Loans & Advances
Rs.1Cr< Rs.2 Cr (Companies) > Rs.5Cr&< Rs.10
Cr

Other > Rs.2 Cr< Rs.5 Cr

High Customers having aggregate Customers having aggregate

credit balance > Rs 3 Cr OR credit balance > Rs 10 Cr OR
Loans & Advances > Rs.2 Cr Loans & Advances

(Companies) > Rs.10 Cr

Other > Rs.5Crs

Customer Risk Categorisation as per number of transactions

Risk Individual Customers Non-Individual Customers

Low • SB account < 50 transactions Current account / Overdraft /

for a quarter. Cash Credit < 100 transactions
for a quarter • All other accounts
viz DL/TL etc. which are not
covered in High & Medium. • All
accounts of the government /
Semi Govt / PSU / Defence /
Large MNC i.e., IOC, ONGC,
NPO /NGO promoted by UN or its
agencies, Government owned
Companies/ Department and
(State/Central), JVs with Govt,
Regulators, FIs, Statutory bodies
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etc. should be marked as Low

Risk under this parameter
irrespective of number of
transactions in these Accounts.

Medium SB account between 25 to <=50 Current account / Overdraft /

transactions for a quarter • Cash Credit between 100 to
Current account & OD <=200 transactions for a quarter
(Individual) between 50 to <=100
transactions for a quarter

High • SB account with > 50 Current account / Overdraft /

transactions in a quarter • Cash Credit >= 200 transactions
Current & OD A/C (Individual) for a quarter
with >100 transactions for a
quarter.

• All other accounts viz DL/TL etc. which are not covered in High & Medium. • All salary accounts of
the government / Semi Govt / PSU / Defence / Staff / Pensioner Large MNC i.e., IOC, ONGC etc.
should be marked as Low Risk under this parameter irrespective of number of transactions in these
Accounts

Customer Risk Categorisation as per Turnover

Risk Individual Customers Non-Individual Customers

Low Turnover < Rs.2 Cr, Turnover < Rs.20 Cr

Medium Turnover >= Rs. 2 Cr and < Rs. 5 Turnover >= Rs. 20 Cr and < Rs.
Cr. 50 Cr

High Turnover >= Rs. 5 Cr Turnover >= Rs. 50 Cr.

All accounts of the government / Semi Govt / PSU / Defence / Large MNC i.e., IOC, ONGC, NPO
/NGO promoted by UN or its agencies. Government owned Companies/Department and
(State/Central), JVs with Govt, Regulators, FIs, Statutory bodies etc. should be marked as Low risk
under this parameter irrespective of number of transactions in these Accounts

Do And Don’ts for Operating Units / Functionaries for Forex Transactions From AML/CFT
Perspective (Circular No.: AML-CFT/AML-CFT-MEASURES/4/2022 – 23 dt 14.10.2022)

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Virtual Currencies (VC)

In view of higher risk involved in dealing in VCs, Bank shall not deal in Virtual Currencies (VC) or provide
services for facilitating any person or entity in dealing with or settling VCs. Branches/offices shall not
undertake activities like, giving loans against virtual tokens, accepting them as collateral, opening
accounts of exchanges dealing with them and transfer / receipt of money in accounts relating to
purchase/ sale of VCs. However, individual customers will not be prohibited from participating/ investing
in VCs as per their market perception at their own risk/responsibility.

FATCA & CRS

Genesis of FATCA

“FATCA” means Foreign Account Tax Compliance Act of the United States of America (USA) which,
requires foreign financial institutions to report about financial accounts held by U.S. taxpayers or foreign
entities in which U.S. taxpayers hold a substantial ownership interest. USA has entered into Inter
Governmental Agreement (IGA) with various countries. The IGA between India and USA was signed on
9th July 2015. Reporting Financial Institutions need to register with U.S. Internal Revenue Service (U.S
IRS) and obtain Global Intermediary Identification Number (GIIN). Accordingly, State Bank of India has
registered itself with US IRS and obtained GIIN which is 68D1E5.99999.SL.356.

Genesis of CRS

To combat the problem of offshore tax evasion and avoidance and stashing of unaccounted money
abroad requiring cooperation amongst tax authorities, the G20 and OECD countries working together
developed a Common Reporting Standard (CRS) on Automatic Exchange of Information (AEOI). The
CRS on AEOI was presented to G20 Leaders in Brisbane on 16th November 2014. The CRS on AEOI
requires the financial institutions of the “source” jurisdiction to collect and report information to their tax
authorities about account holders “resident” in other countries, such information having to be transmitted
“automatically’ on yearly basis. The Government of India has also, on 3rd June 2015, joined the
Multilateral Competent Authority Agreement (MCAA) for exchanging information.

Income-tax Rules, 1962 were amended by inserting Rules 114F to 114H and Form 61B to provide a
legal basis for the Reporting Financial Institutions (RFIs) for maintaining and reporting information about
the Reportable Account. If any account is identified as a reportable account, then the Reporting Financial
Institution shall report the relevant information in Form 61B in respect of the identified reportable account

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US INDICIA - Identification of FATCA Reportable Individual Accounts

Indicia: Any of the indicators tentatively identifying, through electronic search or other means (includes
details obtained at the time of opening an account), whether an account is US Reportable or Other
Reportable.

1. United States (US) citizen (including a green card holder)

2. US Nationality (by birth)

3. Resident of US for tax purpose

4. Unambiguous indication of US Place of Birth

5. Current US residence address

6. Current US mailing address

7. Current US Post Box No.

8. One or more US telephone number and no telephone number in India (compare with the ISD code
of USA i.e., 001)

9. Standing Instructions (other than with respect to a depository account) to transfer funds to an
account maintained in the US.

10. Currently effective Power of Attorney (PoA) or Signatory Authority (SA) granted to a person with a
US address

11. “Hold mail” instruction in US, if the Bank does not have any other address on file for the account
holder.

12. “In –care-of” address in US, if the Bank does not have any other address on file for the account
holder.

13. Whether one or more US telephone Number if an Indian telephone number is also associated with
the account.

Reporting Financial institution

Only Entities can be RFIs. The term “Entity” would include legal persons such as corporations,
partnerships, trusts, foundations and HUF. Individuals, including sole proprietorships, are therefore not
RFIs. FIs in four different categories, namely, Custodial Institutions, Depository Institutions, Investment
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Entities and Specified Insurance Companies. The Financial Institutions resident in India, their branches
located in India and branches of Foreign Financial Institutions that are in India are the Reporting
Financial Institutions (RFIs). While Foreign Financial Institutions, their foreign branches and foreign
branches of Indian Financial Institutions are not treated as RFI.

Non-Reporting Financial institution

There are certain FIs which are not required to maintain or report the information. These FIs are called
non-reporting financial institutions (NRFIs) and defined in Rule 114F (5) of IT Rules, 1962.

Reportable Account

Which has been identified pursuant to the due diligence procedure, as held by

a) a reportable person; or

b) an entity, not based in United States of America, with one or more controlling persons that is a
specified U.S. person**; or

c) a passive non-financial entity (passive NFE) with one or more controlling persons that is a person
described in sub-clause (b) of clause (8) of the rule 114F.

Specified U.S. person

Specified US Person includes:

• An individual who is a citizen or resident of the US

• Corporations, partnerships, estates and trusts formed under US law.

Thus, an account can be a Reportable Account by virtue of the Account Holder or by virtue of the
Account Holders’ Controlling Persons.

Non-Financial Entity (NFE)

Non-Financial Entity is an entity which is not a financial institution. There are two types of NFEs- (i)
Active NFE and (ii) passive NFE.

Active NFE

Includes entities that are publicly traded (or related to a publicly traded Entity), Governmental Entities,
International Organisations, Central Banks, or a holding NFEs of nonfinancial groups and essentially

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excludes Entities that primarily receive passive income or primarily hold amounts of assets that produce
passive income (such as dividends, interest, rents etc.).

Passive NFE

a) Any non-financial entity which is not an active non-financial entity; or b) an investment entity) not a
withholding foreign partnership or withholding foreign trust. If the Entity Account Holder is a Passive
NFE then the Financial Institution must “look through” the Entity to identify its Controlling Persons. One
of the criteria to classify the NFE into Active NFE or Passive NFE is income and assets.

“Pre-Existing Account”

Financial account maintained by a reporting financial institution as of, (i) 30 June 2014, in case of a U.S.
reportable account (FATCA); and (ii) 31 December 2015, in case of other reportable account (CRS).

“New Account”

Financial account maintained by a reporting financial institution opened on or after, (i) 01 July 2014, in
case of a U.S. reportable account (FATCA); and (ii) 01 January 2016, in case of other reportable account
(CRS). It is to be noted that accounts opened under CIFs created on or before 30.06.2014 (FATCA) and
31.12.2015 (CRS) will be treated as Pre-Existing accounts and governed by due diligence procedures
applicable to Pre-Existing accounts.

Self-Certification & Classification of Accounts as Documented Account or Undocumented

Account

a) Due Diligence Procedures for Pre-existing Accounts:

(i) Branches need to verify the indicia identified in the electronic search in order to confirm the same.

(ii) Once presence of US indicia/other indicia is confirmed on such re-verification, Letter to account
holder is to be sent requesting for submission of self-certification/documentation regarding tax resident
status of the account holder.

(iii) Self-certification /Documentation can be either for curing of US /Other indicia in which case the
account becomes a “Not US /Other reportable” or for confirming the US indicia/Other indicia in which
case the account becomes “US /Other reportable”. If reportable status of account is determined on the
basis of self-certification, it is required to be reported as Documented Reportable account.

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(iv) On receipt of self-certification /documentation, branch to verify whether the self –certification is
correct, valid, complete and duly signed by the account holder and accompanied by the required
documents.

(v) Record details of self-certification and documentation in CBS.

(vi) In case no self-certification is received within reasonable time, the account needs to be marked as
Undocumented Reportable account and to be Reportable based on the US/Other indicia identified
during due diligence procedures.

(vii) Consequent to marking the account as reportable, letter is to be sent to account holder
communicating of their reportable status.

Due Diligence Procedures for accounts opened under Alternate Procedures i.e., New CIFs
opened during the period 1.07.2014 to 31.08.2015:

In case of such new Accounts opened under, New CIFs created during the period 1.07.2014 to
31.08.2015, where self-certification is not received, then these accounts are to be blocked by the Bank.
The Branches are required to follow up with the account holder for the duly completed self-certification
and confirm reasonableness of such self-certification on receipt.

Due Diligence Procedure for New Accounts w.e.f. 01.01.2016

The due diligence procedure involves capturing of the status of the account as US Reportable or
Other Reportable or not reportable at the time of CIF creation itself. No new account should be
opened unless complete FATCA/CRS details & declaration in the account opening form is obtained by
the Branch.

Curing / Confirming of indicia

For all accounts where presence of one or more US indicia is established through various searches
(electronic, paper record, Relationship Manager), the Relationship Manager will send a letter to the
account holder requesting for self-certification & documentary evidence for curing/confirming of indicia.
In case customer confirms status of his account as reportable, it is called ‘confirming of Indicia’, in the
opposite case, if he declares status of his account being non-reportable to the satisfaction of RM, it will
be called ‘curing of Indicia”.

Relationship Managers

Branch Manager in branches up to Scale-V incumbency and one of the AGMs in DGM & above branches
are designated as Relationship Managers (FATCA & CRS) who are responsible for completing due
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diligence for all accounts in respect of FATCA & CRS. They will also arrange for obtaining self-
certification in all new accounts opened from 01.07.2014 till 31.12.2015 and ensure that new accounts
opened w.e.f. 01.01.2016 through new account opening form are FATCA & CRS compliant

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 FOREX, IB, Treasury and NRI Business
` Under FEMA guidelines all forex transactions are classified under three
guidelines:

❖ Regularity Aspects
❖ Discretion to ADs in case of few deviations in regularity aspects as per
FEMA
❖ Permission from RBI in case of other deviations in regularity aspects
as per FEMA (deviation in transactions beyond the discretion of ADs)

Referrals to RBI: If the forex transactions are not as per FEMA guidelines
and also ADs are not given any discretion then such type of regulatory
deviations then such types of transactions should be referred to RBI.

KYCC (Know Your Customer’s Customer): Opinion report on foreign

Foreign
suppliers and buyers through international agency such as D&B, Mira etc.
Exchange
Management
TBML: (Trade Based Money laundering): The common technique adopted is
Act.
over invoicing and under invoicing.
(FEMA) 1999
Sanctions: In international trade several Trade sanctions issued by the
United Nations, European Union and United States of America etc. are in
place. The most important sanction issued by USA is OFAC (Office of
Foreign assets Control) & CATTSA

❖ OFAC sanction by USA prevents US dollar trade across globe with

identified entities and countries under SDN, SDNT, SDGT and
Embargoed Nations list.

❖ CAATSA (Countering America’s Adversaries through Sanctions Act)

sanction prevents US dollar trade with target countries like Iran,
Russia, Syria, Sudan etc.

Current and
Current account transactions do not impact the asset and liability position of
Capital
the customers.
transactions

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It includes merchandise Import and Export, services, and unilateral transfers

usually in a year.

Capital account transactions impact the asset and liability position of the
customers. Capital account shows net change in ownership of physical and
financial assets for a nation, i.e., borrowings lending and investments.

Balance of Payment is record of all the transactions of the country with outside
world. Favorable BOP indicates that the country is receiving more Foreign
Exchange than it is spending.

Categorization of Branches.

Category A: Branches authorized to maintain Foreign Currency accounts

including ACU accounts and Nostro Accounts with the correspondent banks
and handle all types of forex transaction
Categorization
Category B: Branches authorized to handle trade-related and Service- related
of Branches.
transactions denominated in foreign currencies and Indian rupees and
authorized to operate on Bank’s Foreign Currency accounts

Category C1: handle trade related transaction and NRI transaction in INR

CategoryC2: handle service-related transaction and NRI transaction in INR

Nostro accounts: Our account with You, our bank account is maintained by
foreign bank in foreign currency
Vostro: Your account with us, account is maintained by our bank in INR.
Loro: Their account with you.
Exchange Rate is the conversion rate of one currency in terms of another
Exchange currency. An exchange rate measures the value of one currency in units of
Rate another currency. An exchange rate represents the price of a currency, which
Mechanism: is determined by the demand for that currency relative to the supply for that
currency. When a currency declines in value, it is said to depreciate. When it
increases in value, it is said to appreciate. On the days when some currencies
appreciate while others depreciate against a particular currency, that currency
is said to be “mixed in trading.”

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Checklist for trade transactions (export & import).

✓ IEC (Importer Exporter Code) issued by DGFT are 10 digits code and
since Dec 12 IEC is the Pan no. of the customer. Issuance of IEC code
www.dgft.gov.in . IEC code is valid for life and its status viz cancelled,
suspended etc. can checked from www.icegate.gov.in
✓ ITC (HS) code and its importance- Free, Restricted, Prohibited,
canalized
Checklist trade ✓ RCMC for Exporter (Registration Cum Membership Certificate) issued
transactions by EPC (Export Promotion Council) or Commodity Board.RCMC is
(export & valid for 5 years
import) ✓ GST registration Certificate
✓ Status Holder Certificate for eligible exporter issued by DGFT.
✓ KYC, KYCC, AML-TBML, Sanction issues
✓ All export contracts and invoices can be drawn either in freely
convertible currency or in INR but proceeds of export should be
realized in freely convertible currency except export to Nepal and
Bhutan.

DGFT grants Status Holder Certificate to reward export performance of the

exporter based on FOB/FOR value of export realized during current + two
previous financial years (taken together and is valid for 5 years)

Status Category Export performance FOB/FOR

(value in USD Million)
One Star Export House 3

two Star Export House 25

Three Star Export House 100
Status Holder
Four Star Export House 500

Five Star Export House 2000

Benefits & Privileges to status holders:

i. Authorization & customs clearance for both import & export on self-
declaration basis,
ii. Fixation of SION on priority basis within 60 days.
iii. Direct dispatch of export document to consignee.
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iv. Exemption from furnishing BG in schemes under FTP.

v. Can establish export warehouse.
vi. Three star and above Export House shall be entitled to get benefit of
Accredited Clients Programme (ACP) of CBEC.
vii. Self-certification for originating from India for preferential treatment
under FTA

Licensing: Import /export license is normally issued for import/export of

restricted items.

Time period of realization of Exports.

1. 9months: --Export proceeds of goods/services exported has to be

realized within 9months from the date of exports for all exporters
Exports including units in SEZs, Status Holder, EOUs, units in EHTPs, STPs &
BTPs. (APDIR Circular No. 37 dated 20/11/2014).

2. 15 months: -Goods exported to warehouse located outside India to

realize within 15 months from date of shipment.
Extension of time period of Realization

AD may extend the period of realization of export proceeds beyond 9

months from the date of export up to 6 months at a time irrespective of
invoice value subject to: -
a) Export is not investigated by CBI/ED,
b) Reasons for delay is satisfying to AD,
c) Exporter is ready to give declaration for realization within extended
Exports period,
d) In extension cases crossing 1year from the date of export, the total
export o/s should not exceed $1 Mio or 10% of average export
realizations during preceding 3 FY whichever is higher,
e) In EDPMS such extension should be indicated in ‘Remarks’ column,
f) In suit filed cases, extension can be granted irrespective the amount
involved/outstanding,
g) Extension allowed by Branch/division head not below AGM rank.
Backup paper retention for audit (IBG- 64 dt. 18.03.2019)

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Cases not covered by above would require prior approval from RBI.

3. Caution listing of Exporters.

❖ From the date of shipment if any shipping bill remains open for over 2
years without extension granted by AD, then exporter will turn out as
‘caution listed’ exporter.
❖ Only LC backed bills can be handled for purchase, negotiation or
collection.LC drawn in exporters favor.
❖ Full Advance payment received cases- export bills can be handled by
Banks.
Exports
❖ Non-LC Bills of a caution listed exporter cannot be handled by ADs.
❖ For issuing guarantees for caution listed exporter RBI permission is
required.
❖ Exporter can also be caution listed before two years based on
recommendations of ADs, CBI, and DRI if exporter is not traceable, or
exporter is not making any serious efforts to realize the export bill.
❖ Caution listed exporter need to be informed.

4. Advance Payment Received by exporter

i) The shipment of goods is made within one year from the date of receipt of
advance payment or within the stipulated period.

ii) The rate of interest, if any, payable on the advance payment does not
exceed the rate of interest London Inter-Bank Offered Rate (LIBOR) + 100
basis points.
Exports
iii) The documents covering the shipment are routed through the Authorized
Dealer through whom the advance payment is received.

iv) If an Exporter receives advance payment for shipment beyond one year,
the Export agreement should duly provide for shipment of goods extending
beyond the period of one year from the date of receipt of advance payment.

5. Write-off of unrealized Export bills in a calendar year.

Exports
❖ Self “write-off” by an Exporter (Other than Status Holder Exporter)- 5%*

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❖ Self “write-off” by Status Holder Exporters - 10%* ‘

❖ Write-off” by Authorized Dealer Bank- 10%*

*Of the total Export proceeds realized during the previous calendar year

Export Finance:

The export fiancé is given in the form of Pre shipment (EPC /PCFC) and
Post shipment Finance (PSC/EBR). In order to promote exports, it is given
at concessional rate under Interest Equalization Scheme of GoI. The
scheme is extended till 31st March 2024.In case of SME exporters interest
subvention is 3.00% and for other exporters interest subvention is 2.00%.

Pre shipment working capital finance (EPC /PCFC)

✓ It is sanctioned in the form of EPC (Export packing credit) in INR and

PCFC (Pre shipment credit in foreign currency).

Export Finance ✓ It is disbursed for purchase of raw materials, processing costs and
packing costs. It covers all the cost till the shipment stage. It is granted
on FOB value.

✓ The pre shipment is given for 180 days which may be extended by 90
days i, e up to 270 days.

✓ PCFC may be given in currency USD/GBP/EURO. The interest rate is

linked with LIBOR.

✓ Release of EPC a) order by order b) Running account

EPC/PCFC as Running account: (To exporters with good track record as

also to EOUs/ FTZ/ EPZs and SEZs units.)

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✓ Overdue export bills should not exceed 5% of average annual export

realizations during preceding 3 calendar years.
✓ LC / firm orders to be produced within a reasonable period of time.
✓ Marking off individual export bills against the earliest outstanding Pre-
shipment credit on FIFO basis to ensure individual Pre-shipment credit
does not go beyond the period of sanction or 270 days from the date
of advance, whichever is earlier.
✓ PC can also be marked-off with proceeds of export documents against
which no packing credit has been drawn by the exporter.
✓ Running account facility will not be granted to sub-suppliers.
✓ (Operations on the packing credit accounts by cheques not permitted)

Post shipment working capital Finance:

✓ It is sanctioned in the form Foreign Bill Discounting (FBD) (INR) and

Export Bill Rediscounting (EBR) (Foreign currency).

✓ The exports bills under collection are discounted /negotiated and

credited to EPC/FCNR account.

✓ It is granted for 100% of bill value.

✓ The EPC/PCFC account is credited on disbursement of PSC/EBR

✓ The FBD/EBR gets liquidated on realization of export bill payment.

✓ The FBD/EBR is given as per the tenor of the export bill along with the
transit time.

✓ In case the FBD/EBR advance are not liquidated on due date as the
export payments have not been realized and if borrower agrees to
make the payment through domestic sale proceeds, then in such case,
he is charged with cash credit interest rate from the date of advance.

Acceptable
Acceptable Evidence of Export
Evidence of
Export

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a. Shipping Bills (SB): -- For merchandise exports in EDI ports shipment.

Soft form to Customs.

b. EDF Forms: -- For merchandise exports from on non-EDI ports, in

duplicate submission of EDF forms to Customs

c. SOFTEX Forms: --To be submitted in software exports, to be

completed in duplicate (APDIR 627 05th November2015). STPI under
MoIT

ECGC (Export Credit Guarantee Corporation): provides credit risk

insurance to exporters and banks.

✓ Exporters gets the insurance against the default of exports payment by

the foreign buyer and cover payment risk on account of political and
commercial risks.

✓ Banks and financial institutions get the insurance against the default of
export finance, when the loan account becomes NPA on account of
nonpayment of exports by the foreign buyer
ECGC (Export
✓ ECGC products available for banks: whole turnover pre-shipment
Credit
(ECIB-WTPC) and whole turnover post shipment credit (ECIB- WTPS)
Guarantee
Corporation
✓ Since 2011, the bank has made it mandatory to cover all the export
finance under ECGC as the ECGC covered export finance attract only
20% of risk weight irrespective of ECR of the exporter.

✓ The Discretionary Limit (DL) under the ECGC cover is Rs. 5 crs. Up to
export credit exposure of Rs 5.00 crs to the new customer the branches
do not need to get the approval from the ECGC.

✓ If the export credit exposure is more than Rs 5.00 crs the branch needs
to obtain the approval from ECGC before the disbursement of loan.

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✓ The risk covered is for 12 months and before the expiry of the 12
months period the branch needs to notify the ECGC for further
Renewal of the limit.

✓ Lists of exporters which are having adverse remarks are maintained in

the form of SAL lists by ECGC.

✓ If exporter figures in SAL/Restricted cover countries, prior approval of

ECGC to be obtained.

✓ The branch needs to do flagging of ECGC in pre shipment and post

shipment account.

✓ In case of default Report of default (ROD) to be done within 4 months

from the due date.

✓ Filing of claim to be done within 6 months from ROD.

✓ Premium has to be paid up to and inclusive of the month in which

Report of Default is submitted to ECGC.

✓ The premium is calculated and debited from charges account and

parked in the designated current account of the branch. The branch to
further recover the amount from the borrower.

Export Data Processing and Monitoring System (EDPMS)

✓ To monitor export transactions and facilitate the quick reporting by the

ADs the EDPMS portal has been established on 01.04.2014.
EDPMS
✓ Document submission and realizations of export proceeds is reported
to RBI through EDPMS portal.

✓ The data are updated on real time basis.

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✓ The exporters would be cautious listed if any shipping bill against them
remains open for more than two years in EDPMS provided no
extension is granted by AD Category – 1 bank / RBI.

✓ Date of shipment will be considered for reckoning the realization

period.

Export Incentive Schemes:

Remission of Duties and Taxes on Export Products (RoDTEP) scheme is

introduced wef Ist January 2021. India was under pressure from WTO and
other trade partners to stop direct incentivization of exporters. Under the
scheme, Govt will refund embedded taxes/duties/levies at central/state and
local level, which are not refunded currently. The rebate rate varies from
0.5% to 4% on FOB value with a cap on value per unit on products where it is
required.

Service Export from India Scheme (SEIS): Duty credit that provides service
export incentives @ 3% or 5% (revisable from time to time) of FOB value of
service export.

EPCG (Export Promotion Capital Goods Scheme): Capital goods can be

imported with nil duty if the goods are for export production. Nil duty with
obligation to export. Normally 5 times the duty saved on import worth of goods
has to be exported from India in a period of 6 years.

EEFC (Exchange earner foreign currency) accounts

✓ A person resident in India can open foreign currency EEFC account,

Foreign
✓ Purpose of EEFC is to save transaction cost (on conversion of
currency
currency) and not to maintains assets in foreign currency,
Accounts for
✓ Inward remittance except foreign currency loan or investment can be
export
credited to EEFC account,
✓ Non-interest-bearing current account,
✓ Close relative (as per Companies Act 2013) can be joint account holder
of EEFC on Former/survivor basis,

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✓ Sum total of accruals in a calendar month in EEFC accounts should be

converted into INR before last day of succeeding month after adjusting
the utilization of the balance for the approved purposes,
✓ Repayment of PCFC/EPC can be made out of the balances in EEFC

Diamond Dollar Account (DDA)

✓ Units dealing with rough cut and polished diamond, studded jewelry.
✓ Track record of two years of import export in the field.
✓ Annual turnover Rs 3 crore above in preceding three licensing year.
✓ Maximum 5 DDA accounts per entity and no intra account transfers of
the entity allowed.
✓ Conversion to INR-same rule as EEFC.
✓ Apart from payment for import of rough diamonds, payments for local
purchase of cut polished diamond, for import of gold and repayment of
USD loans are the permissible debits.

The International Chamber of Commerce (ICC) is the world business

organization and is a representative body The ICC was founded in 1919 with
headquarters at Paris.

✓ UCPDC 600 related to Documentary credit (LC): It has 39 articles

✓ ISBP 745 related to scrutiny of documents under LC: international

standard Banking practices

Publications of ✓ URR 725 dealing with bank-to-bank reimbursement

ICC
✓ URC 522 dealing with collection of bills

✓ INCOTERMS 2020 dealing with 11 international Commercial Terms

relevant for trade contracts

✓ ISP 98 dealing with Stand by Letter of Credit

✓ URDG 758 dealing with international bank Guarantees.

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INCOTERMS grouped into 4 groups

i. E-Terms: Seller/Exporter makes the goods available to the

buyer/importer at the seller’s own premise. E-Terms is the most pro-
seller term e.g EXW

ii. F –Terms: Seller/Exporter is responsible to deliver the goods to a

carrier named by the buyer/importer. F-terms make buyer liable for
main carriage.e. g FCA, FAS and FOB.
INCOTERMS
2020
iii. C-Term: Seller/exporter is responsible for contracting & paying for the
carriage of the goods, but not responsible for additional costs or risks
of loss or damage to the goods once goods have been shipped e.g
CFR, CIF, CPT and CIP.

iv. D-Term: Seller/exporter is responsible for all costs and risks associated
with bringing goods to the place of destination. D-terms make seller
liable for arrival. D-terms have DAP, DPU& DDP

Time limit for Settlement of Import Payments

❖ Remittances against imports should be completed no later than six

Imports months from the date of shipment.
Payments
❖ In case of delayed payments, the 6 months extension may be provided
by ADs at a time with the maximum timeline up to three years from the
date of shipment.

Advance Remittance for Import

Advance ❖ Advance remittance up to USD 200,000 for import of goods is allowed

Remittance for without BG.
Import
❖ If the amount of advance remittance exceeds USD 200,000 or its
equivalent, an unconditional irrevocable standby Letter of Credit or a
guarantee from an international bank of repute situated outside India.

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❖ Public Sector Company/ GOI /State Government the limit to send

advance remittance without BG is USD 100,000.

❖ In case of Import of Rough Diamonds: Advance remittance for import

of rough diamonds is allowed without any limit for BG. The overseas
mining company must be recognized by GJEPC (Gems and Jewellery
Export Promotion Council.)

Opinion Reports for Advance remittance for Import:

❖ Branch should obtain satisfactory opinion report on the overseas
supplier/ from an independent agency or from our representative/
foreign offices/ correspondents abroad before allowing advance
remittance for Import. The prescribed limit is as follows.

❖ Customers having borrowing arrangements with us: If the amount of

advance remittance exceeds USD 50,000.00 such opinion report on
overseas supplier/agent is needed.

❖ If customers are not having borrowing arrangement with us: - If the

amount of advance remittance exceeds USD 25,000.00 such opinion
report on overseas supplier/agent is needed

Evidence of Import:

Evidence of ✓ BoE number issued by Customs Authorities

Import
✓ The BoE details to be mandatorily verified from ICEGATE portal

Foreign Contribution (Regulation) Amendment Act-2020

❖ Every entity which has been granted a certificate or prior permission

FCRA under the Act, shall receive contribution into the “FCRA Account” at
specified Branch only. The FCRA account shall be opened in State
Bank of India, New Delhi Main Branch.

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❖ https://fcraonline.nic.in/home/index.aspx Verify the FCRA registration

number on the home page.

❖ For donations received through SWIFT at GMU (K) / Foreign

/Currency cheques /Drafts/cash.

Import Data Processing and Monitoring System (IDPMS)

✓ Implemented with effect from 01.04.2016 for auto monitoring of

import transactions through IDPMS RBI database portal for import
transactions.
✓ Doing away with submission of BEF statements.
✓ Updated status of any import transaction.
✓ Visible to all user agencies on real time basis.
✓ Effective monitoring of related transactions, customer-wise,
amount-wise.
✓ Primary data on import transactions from Customs and SEZ will first
IDPMS
flow to the RBI secured server and thereupon depending on the AD
code shall be shared with the respective banks for taking the
transactions forward.
✓ The AD bank shall enter every subsequent activity, viz. document
submission, outward remittance data, etc. in IDPMS so as to update
the RBI database on real time basis
✓ For non-EDI (manual) Customs ports, till they are upgraded to EDI
(computerised) ports, nodal branch of AD Category – I banks will
upload Bills of Entry (BoE) data based on original BoE with
stamp/signature of the Customs as submitted by importer.

Import Finance:
✓ Fund based – Buyer’s credit & Suppliers Credit

Import ✓ Non fund based- letter of credit and Bank Guarantee

Finance:
Letter of credit:

❖ Under LC the applicant is the importer and beneficiary are the seller.
The importer bank is the LC issuing bank and undertakes to make

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payment to the beneficiary when beneficiary submits the documents

which are as per LC terms.

❖ The transactions under LC are governed by UCPDC 600 and ISBP

(International Standard Banking Practice) terms.

❖ The LC is also called Documentary credit as the credit is available

based on the complying presentation of documents.

Why Hedging of exchange risk through Forward Contract?

❖ When customer exports goods because of volatility in the forex market,

he is uncertain about the amount which he will be getting in Indian
currency and this uncertainty is known as currency exchange risk.

❖ So, to mitigate this currency exchange risk the customer hedges the
export and import payment transactions through forward contract.

❖ Through forward contract he enters into agreement with the bank that
on due when payment realized in USD (foreign currency) he will be
getting the fix exchange rate, irrespective of exchange rate prevailing
Forward on due date in volatile forex market conditions.
Contract
❖ All the resident and nonresident customers are eligible customers for
forward contract notional limit. The eligible customers are classified as
retail and non-retail customers.

❖ All the individual customers and non-corporate customers are retail

customers. The company with a minimum net worth of Rs.500.00crs
comes under nonretail.

Forward contract notional limit calculation:

The forward contract notional limit for export (sales) and import (purchases)
is the average of three years of export and import (Actual, estimated and
projected year) and other revenue and capital flows.

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I. The borrower is assessed for Notional Limit for Export (Sales) and
Import (purchases) separately.
II. The eligible Notional limit for Sales (Exports)= average of three years
exports turnover (latest audited +estimated + projected turnover)/3
III. The eligible Notional limit for Purchases= The average of three years
import purchases (latest audited +estimated + projected turnover)/3
IV. CEL limit (Anticipated Exposure) = 2% (of ii) + 2% (of iii)
V. CEL limit under Contracted Exposure=2% of contracted exposure.
VI. Additional cushion is provided for MTM.

CEL (Credit Exposure Limit) assessed for the borrower =IV+V+VI

Documents to obtained:
❖ ISDA master Agreement.
❖ Schedule to ISDA Agreement.
❖ In case of company board of resolution, duly authorizing the company
and the authority structure.
❖ Risk policy of the company.

Points for remembering:

✓ The rate is (foreign currency is converted into rupees) cash, tom, spot
and forward rate.
✓ All rates beyond spot (value T+2) are forward rate.
✓ The most common forward contract is USD /INR
✓ The Forward rate =Spot rate (+/-) premium/ discount. In case USD/INR
there is always premium.
✓ The benefit of premium goes to the exporter while importer pays the
premium to the bank.
✓ The premium or discount is the interest rate differential between two
currencies pairing.
What is ODI (Overseas Direct Investment)?
✓ An investment, by way of contribution to the capital or subscription to
Overseas the Memorandum of Association of a foreign entity (mainly through
Direct JV/WOS)
Investment ✓ Or by way of purchase of existing shares of a foreign entity either by
market purchase or private placement or through stock exchange.
✓ Not include portfolio investment

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When ODI transactions triggered?

✓ Incorporating a company in foreign jurisdiction
✓ Investing in overseas listed companies
✓ Acquiring or divesting shares of a foreign entity
✓ Giving a loan to foreign entity
✓ Extending guarantee on behalf of a foreign entity
✓ Receiving shares in lieu of receiving payment for export or rendering
services abroad
✓ Pledge of shares of JV/WOS
✓ Getting SBLC issued by a bank in India for foreign entity

Eligibility:
✓ Company incorporated in India
✓ Registered Partnership firm
✓ LLP
✓ Body created under an Act of Parliament
✓ Entity notified by RBI (MF or AIF)

Total financial commitment: of the Indian Party (IP) in JV/WOS cannot

exceed 400% net-worth of its audited balance sheet.

Routes:
Automatic Route and Approval Route.

ECB (External commercial Borrowing) are Commercial Loans

✓ Raised by: Eligible resident entities
✓ From: Recognised lenders
✓ For: Permitted end use
✓ As per: Prescribed parameters (min. maturity, all-in-cost ceiling etc.) In
External any freely convertible currency or INR
commercial Eligible Borrowers:
Borrowing ✓ All entities eligible for FDI
✓ Port Trust
✓ Exim Bank
✓ Port Trust
✓ SIDBI
✓ Units in SEZ

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Lenders should be members of FATF country or IOSCO compliant

country.
i. Negative List: Real Estate
ii. Investment in capital market

Routes:
Automatic Route and Approval Route.
i. Under Automatic Route Up to USD 750 Mio PER financial year
ii. Under Approval Route Beyond above limits

Forex market is the largest financial market in the world - USD 6.6 Trillion
average daily turnover – according to Bank for International Settlements
(BIS) 2019 survey
Factors effecting exchange rate are
✓ Political factors
✓ Economic factors
✓ Speculative factor

Exchange rate quotes

✓ Direct and Indirect Rates
✓ Buying and selling rate
Exchange ✓ Bid Ask and offered rate
Rate ✓ Spot and Forward rate
Mechanism
Buying and selling rate
✓ TT Buying and selling rate
✓ TC Buying and selling rate
✓ Bill Buying and selling rate
✓ Currency Buying and selling rate

Value dates of cash, Tom , Spot and Forward rate

I. Cash: When settlement is done on the same day; it is a cash
transaction.
II. Tom: When settlement is done on the next working day; it is a tom
transaction

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III. Spot: When settlement is done after two working days, the rate is
quoted on spot basis
IV. Forward: When the settlement is to done beyond the spot date the rate
the customer hedge the transaction through contract and the rate
quoted to the customer is forward rate.

Types of Rates
✓ Card rates– for transactions below INR 10 lacs equivalent.
✓ Online rates – for transactions above INR 10 lacs. These rates are
better than card rates.
✓ Dealer rates– for transactions of high value/ticket size (US$
>=250,000)
✓ E forex- Online platform for customers to take rates directly (Min.
$20000)

Direct Access of dealing Room

In case a customer wants to have direct access to book forex rates directly
from the dealing room (Forex Turnover>500 Cr) by phone or e-forex (Sales
Turnover>20 Cr) by internet for booking forex transactions, undernoted
documents required:

✓ Board Resolution
✓ Stamped Telephone Indemnity
✓ Request Letter
✓ Above documents to be kept at Branch and only RM recommendation
letter (in original) to be sent to Dealing Room/RTMU

Current Exposure Limit (CEL):

Before allowing any Forward Contract or Derivative product, CEL needs to
be in place.
✓ CEL= current credit exposure (CCE) + potential future exposure (PFE).
✓ CCE = Sum of the Negative MTMs to the customer (+ve MTMs to be
ignored) of the outstanding contracts
✓ PFE = Notional Principal times CCF based on nature of instrument and
residual maturity

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Exchange Rate margin: Bye at low rate and sell at high rate
Profit on account of forex business is because of exchange rate margin.
e.g 1 USD=76.77/76.79 and margin is 5 paise
bank will buy 1 USD @76.77-.05= Rs76.72 and sell at @76.79+.05= Rs
76.84

NRI BUSINESS
FEMA does not define the term ‘Non-Resident’ but defines ‘Resident
in India’.
❖ Therefore ‘Non-Resident Indian’ is a person who is not a
resident in India but a citizen of India or a ‘Person of Indian
Origin’.

Section 2(v) of FEMA: The term “Person resident in India” means—

❖ (i) a person residing in India for more than one hundred and
eight-two days during the course of the preceding financial
year but does not include –
(A) a person who has gone out of India or who stays outside India, in
NRI definition as per Sec either case
2, FEMA ❖ (a) for or on taking up employment outside India, or
❖ (b) for carrying on a business or vocation outside India, or
❖ (c) For any other purpose, in such circumstances as would
indicate his intention to stay outside India for an uncertain
period.

(B) a person who has come to or stays in India, in either case,

otherwise than-

(a) for or on taking up employment in India, or

(b) for carrying on in India a business or vocation in India, or
(c) for any other purpose, in such circumstances as would
indicate his intention to stay in India for an uncertain period.

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(ii) any person or body corporate registered or incorporated in

India,

(iii) an office, branch or agency in India owned or controlled by

a person resident outside India,

(iv) an office, branch or agency outside India owned or

controlled by a person resident in India

‘Resident in India’ is defined as an Individual who

❖ is in India in that year for a period or periods amounting in all to
182 days or more.
❖ Is in India for atleast 365 days during 4 years preceding that year
AND atleast 60 days in that year
As per Income Tax Act
NRI Status as per Finance Act 2020 effective from 01/04/2021

✓ Under the act 182 days has been reduced to 120 days
In case where total taxable income in India of such visiting
individuals during the financial year is more than 15 lacs.

An NRI who has returned to India will be called ‘Resident and Not
Ordinary Resident'(RNOR) if

❖ The person has been an NRI for last 9 out of 10 years previous
Resident but Not-Ordinary
years prior to the previous year under consideration.
Resident (RNOR)
or
❖ The person's stay in India during the 7 previous years prior to
the previous year under consideration should be 729 days or
less.

PIO is an individual (not being a citizen of Pakistan or Bangladesh or

Person of Indian Origin Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who
fulfils anyone of the following:
I. at any time, held an Indian Passport

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II. Who or either of their parents / grandparents was born and

permanently resident in India as defined in Government of India Act,
1955
III. Who is a spouse of a citizen of India or PIO
Miscellaneous Forex facilities

ADs are authorized by the Reserve Bank under Section 10(1) of FEMA,
1999, to deal in foreign exchange or foreign securities (the list of ADs
is available on www.rbi.org.in).

The authorized dealers are further classified into AD Category-I bank

Authorized Dealer (AD).
and AD Category II.

Full-Fledged Money Changers (FFMCs) are also permitted to release

exchange for business and private visits.

Travelers going to all countries other than (a) and (b) below are allowed
to purchase foreign currency notes / coins only up to USD 3000 per
visit.

a) Travelers proceeding to Iraq and Libya who can draw foreign

exchange in the form of foreign currency notes and coins not exceeding
Foreign currency carried in
USD 5000 or its equivalent per visit.
cash for travel abroad.
(b) Travelers proceeding to the Islamic Republic of Iran, Russian
Federation and other Republics of Commonwealth of Independent
States can draw entire foreign exchange (up-to USD 250,000) in the
form of foreign currency.

Indian currency that can be Upto Rs 25,000. (Other than Nepal and Bhutan).
brought in while coming
into India

Aggregate value (currency notes, travelers’ cheques etc.) brought in

Foreign exchange that be exceeds USD 10,000 or its equivalent.
brought in while visiting Or
India.
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If foreign currency alone exceeds USD 5,000 or its equivalent.

It should be declared to the Customs Authorities at the Airport in the

Currency Declaration Form (CDF), on arrival in India.

Foreign exchange for travel abroad can be purchased in cash below

Rs.50, 000/-.
Purchase of foreign
exchange for travel
And if the amount equivalent to Rs 50,000/- and above, the entire
abroad mode
payment should be made by way of a cheque.

Unspent foreign exchange held in the form of currency notes and

travellers’ cheques within 180 days of return.

Surrender foreign free to retain foreign exchange up to USD 2,000, in the form of foreign
exchange (Time Frame) currency notes or TCs for future use or credit to their Resident Foreign
Currency (Domestic) [RFC (Domestic)] Account.

Surrender foreign coins –

The residents can hold foreign coins without any limit.
Time Frame

Dance troupes, artistes, etc., who wish to undertake cultural tours

Category of visit which
abroad, should obtain prior approval from the Ministry of Human
requires prior approval
Resources Development (Department of Education and Culture),
from the Reserve Bank or
Government of India, New Delhi.
the Government of India.

Permission for receiving

The Foreign Contribution Regulation Act, 1976 is administered and
grant/donation from abroad
monitored by the Ministry of Home.
under the Foreign
No specific approval from the Reserve Bank is required in this regard
Contribution Regulation
Act, 1976.
International Debit Card Banks authorized to deal in foreign exchange are permitted to issue
(ICC) and International International Debit Cards (IDCs) which can be used by a resident
Credit Card (IDC) for individual for drawing cash or making payment to a merchant
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undertaking foreign
exchange transactions.
establishment overseas during his visit abroad. IDCs can be used only
for permissible current account transactions and the usage of IDCs
shall be within the LRS limit.
Resident individuals maintaining a foreign currency account with an
Authorized Dealer in India or a bank abroad, as permissible under
extant Foreign Exchange Regulations, are free to obtain International
Credit Cards (ICCs) issued by overseas banks and other reputed
agencies.

Residents may book their tickets in India for their visit to any third
country. For instance, residents can book their tickets for travel from
Can residents purchase air
London to New York, through domestic/foreign airlines in India.
tickets in India for their
However, the same (air tickets) would be a part of the traveller’s overall
travel not touching India?
LRS entitlement of USD 250,000.

NRI Deposit Products

Types of Repatria Currency Accounts Taxatio Joint account Permitted
accounts tion n with credits (*)
NRI/Residents
Relatives (@)
Non-Resident Saving Local
Ordinary Partial INR account YES Permitted with Credits
(NRO) (USD 1 Current @30% operation as well as
million Account (**) (For S) inward
per FY) TDR/STDR remittances
RD
Non-Resident Saving Permitted with inward
External Fully INR account NIL operation remittances
(NRE) Current (For S)
Account
TDR/STDR
RD

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Foreign 6 Foreign Permitted with inward

Currency Non- Fully Currencies TDR/STDR NIL operation remittances
Resident (1-5 years) (For S)
(FCNR) USD/GBP/
EUR/CAD/
AUD/JPY
Residents Foreign Permitted with inward
Foreign Fully Currency TDR/STDR NIL operation remittances
Currency USD/GBP/ (1-3 years) (For S)
(RFC) EUR
For Returning
Indians
(*) Foreign cheque, draft, notes or remittance. Interest accrued in NRE a/c, proceeds of
investments originally made by debit to NRE account.
(@) Relative’ means relatives as defined in section 2(77) of the Companies Act, 2013.
(**) Income Tax rates will be as per DTAA (Double Taxation Avoidance Agreement) agreed
between India and various countries, in the case of depositor are resident of any of those countries.
Customer can avail the DTAA benefit by submitting “Tax Residency Certificate”. For the tax
residents of countries where there is no income tax, a “Self-declaration” shall be submitted by the
depositor to the Branch.
If no certificate under DTAA is submitted by the depositor, then Income Tax at a rate of 30.90% will
be deducted at source on interest earned in the NRO accounts irrespective of the amount of
interest.
Certification of KYC In case account is opened without visiting the branch (Non face to face
Documents of NRI customer) certification of KYC documents by either of the following:
i. Authorized officials of overseas branches of Scheduled
Commercial Banks registered in India / An official of SBI Foreign
Office
ii. Branches of overseas banks with which Indian banks have
relationships.
iii. Notary Public abroad,
iv. Court Magistrate
v. Judge
vi. Indian Embassy / Consulate General in the country where the
nonresident customer resides

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Risk Categorization All customers are to be categorized as High Risk, Medium Risk and Low
for NRI Customers Risk. There are 14 parameters including customer type, residential status
(resident or non-resident), occupation, country risk etc., on which Bank
classifies its customers into three risk categories.
i. NRI customers residing / migrating to 27 High Risk Countries will be
marked as ‘High Risk’ Customers.
ii. The list of high-risk countries and the risk associated with
Occupation Codes is revised from time to time. The latest list can be
obtained from the Intranet site of ATM/CFT Dept. through SBI Times
iii. NRI Customers residing / migrating to countries other than 27 High
Risk Countries are ‘Low Risk’ customers.
iv. All Politically Exposed person, all foreign nationals other PIP/OCI,
Tourist opening domestic rupee account are marked as High-risk
customers.
v. However, NRIs with one of the following Occupations will be treated
as ‘Medium Risk’ customers even if they are from the country other
than 27 High Risk countries.
❖ Legal Profession
❖ CA/ICWA/Taxation/Finance
❖ Journalists
❖ Share and Stockbroker.
❖ Capital Market Maker
❖ Industrialist
❖ Business in Trade sector
❖ Business in Service sector

Execution of Power Execution of Power of Attorney (POA)in India by a NRI customer

of Attorney (POA)in ❖ The attorney should be a resident of India.
India by a NRI ❖ Power of attorney is to be executed on a non-judicial stamp paper of
customer appropriate value as applicable in the state where it is executed and
duly notarized.
❖ A Judicial Magistrate or Notary Public should attest the signature of the
Executants (Account Holder).
❖ Executants (Account Holder) of the Power of Attorney must affix his/her
signatures on every page of the Power of Attorney and initials wherever
blanks are filled in.

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When Power of When Power of Attorney (POA) is executed outside India by an NRI
Attorney (POA) is customer:
executed outside
India by an NRI ✓ The attorney should be a resident of India.
customer ✓ The power of attorney should be executed on a stamp paper / plain
paper and in manner as the case may be as applicable to the country
in which the power of attorney is executed.
✓ The signature of the executants should be authenticated by any one of
the following:
✓ SBI Foreign Office authorized official (with SS No), wherever it is
permitted.
✓ Indian Embassy / Indian Consulate / High Commission of India in that
country where the execute Stamp duty should be paid in India within
three months of receipt in India, as applicable in the state where it is to
be submitted.
✓ Executants (Account Holder) of the Power of Attorney must affix his/her
signatures on every page of the Power of Attorney and initials wherever
blanks are filled.

Permissible Permissible transactions by Power of Attorney holder.

transactions by ✓ All local payments in Rupees including payments for eligible
Power of Attorney investments
holder ✓ Remittance outside India of current income in India of the non-resident
individual account holder, net of applicable taxes, to the account holder
himself.

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Non-Permissible Non-Permissible transactions by Power of Attorney holder

transactions by ✓ NOT be allowed to repatriate outside India funds held in the account
Power of Attorney under any circumstances other than to the account holder himself, on
holder behalf of the account holder.
✓ The POA holder shall NOT make payment by way of gift to a resident
on behalf of the account holder.
✓ The POA holder shall NOT transfer funds from the account to another
NRE / NRO SB/Current account on behalf of the account holder
✓ The POA holder shall NOT be allowed to open / close NRE/NRO
SB/Current accounts.
✓ The resident POA holder shall NOT be permitted to apply for any of the
Banks Anytime Channels i.e., INB, ATM etc.
✓ The resident POA holder shall NOT be permitted to tender Foreign
Currency notes for credit to NRE/NRO/FCNR accounts.

Account of Foreign Nonresident (Ordinary) Rupee (NRO) account for six months, till the validity
Tourists- Key of their tourist VISA and can be extended further six months if the tourist
Features VISA is extended for such time period.

Foreign Tourist holding a ‘Foreign Tourist NRO a/c’ is allowed to convert the
balance in the account at the time of departure from the country into foreign
currency provided the account has been maintained for a period not
exceeding six months.

If the account is maintained beyond six months, repatriation of funds abroad

is permitted only with the specific approval of RBI. Domestic ATM cum Debit
Card only (No Card with international usage to be issued).

Account of Foreign ✓ NRO SB A/c to be opened

Students- Key ✓ Balance available against the proceeds of remittances received
features from abroad can be repatriable
✓ Students with Pakistani nationality- Prior approval of Reserve
Bank of India are needed for opening the account.
✓

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Remittance Inward Remittances

facilities for NRIs
I. SBI Rupee Flash for remittances from associated Exchange Houses or
Banks in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE –
Beneficiary receives funds within 10 minutes.

II. SBI Express Rupee for remittances from associated Exchange Houses
or Banks in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE–
Beneficiary receives funds within 2 hours.

III. SBI Express Remit UK: Indian residents residing in UK may use SBI
Express Remit UK to send funds. It is an online service to remit money
from UK based bank account to the beneficiary’s bank account in India
through CIP (Customer Initiated Payments) mode. The link to initiate
transfer: https://remit.onlinesbi.com/glsuk

IV. Instant Transfer: Instant Transfer is a real-time rupee remittance facility

from SBI Foreign Offices in various countries across the world to
beneficiary's account maintained with SBI in India.

V. SWIFT / Wire Transfer: NRIs can send remittance to their beneficiary’s

account in India from their overseas bank through SWIFT (MT 103).

Society for Worldwide Interbank Financial Telecommunications (SWIFT) It

was founded in Brussels in 1973 with collaboration of Seven International
banks supported by 239 banks in 15 countries
Outward
remittances facility a) Outward remittances facility for NRIs:
for NRIs &
Residents I. The funds in NRE or FCNR; fully repatriable i.e., funds can be
transferred to any overseas account

II. Through Internet Banking (INB): For placing outward remittance or

funds transfer request (forex) favouring a third party from NRE savings
bank account to any account overseas through SWIFT mechanism

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III. Through Branch: By submitting a request letter in person or by sending

it through post / courier to home branch for transfer of funds.

b) Outward remittances facility for resident individuals under LRS

i. Liberalized remittance scheme (LRS): Under LRS AD Banks may freely

allow remittances by resident individuals up to USD 2,50,000 per
Financial Year for any permitted current or capital account transaction
or a combination of both.

ii. Remittance beyond the limit can be sent with prior approval of RBI
except for Medical, Education and Emigration purpose where ADs can
send remittance beyond USD 250,000 based on production of
documents by remitter.

iii. The Scheme is not available for transfer of funds from accounts of NRIs,
Non-Individual segment of customers – Corporates, Partnership Firms,
Trusts, HUFs, Government Accounts.

Fx-Out platform for Fx-Out platform for Outward remittances facility for resident individuals:
Outward
remittances facility I. Transactions up to USD 25,000/- or equivalent in other permitted
for resident currencies through Forex Outward Remittance ‘Fx-Out’ application
individuals: under CBS. Resident Indians are allowed to remit funds under LRS
through Fx-Out application under INB also.
II. Per day an amount equivalent to Rs.10 lacs has been enhanced to Rs
18.00 lacs under Fx out.

III. Introduced in 2015, all the branches irrespective of categories A, B or

C can originate the outward remittance for its customers under LRS.

IV. The transactions are received and processed at GMU-K followed by

generation and transmission of Swift message.

V. Remittance from NRE/FCNR (B) account can also be processed

through Fx-Out.

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VI. Remittance from NRO account is not permitted under Fx-out. This is to
be processed through Mercury Fx from linked forex ‘B’ category branch.

VII. On holidays booking can be done only for 6 major currencies only.

Conversion of I. If any existing Resident Indian account gets NRI status then existing
Resident account to account needs to be converted into NRO account or to be closed down
Non-Resident before opening a new NRE / NRO account, as an NRI cannot maintain
(NRO) and vice a domestic account.
versa
II. When NRI to India then existing NRE /NRO accounts gets converted to
resident Indian (domestic) account. The returning NRI would not be
able to claim tax exemption on interest income once the NRE account
is converted into resident account.

NRI Family CARD Features of NRI card

✓ Prepaid card
✓ Applicant: Family member or dependent or beneficiary or any
acquaintance of NRIs in India
✓ Identity and address proof as per KYC requirement in resident deposit
accounts.
✓ Beneficiaries will make an application to the branch and get the card on
their own.
✓ They will advise the card number to the NRE/ NRO account holder for
loading it.

Target group for the card

✓ The family member or dependent or beneficiary or any acquaintance of
NRIs residing in India and need to get remittance for maintenance
purposes etc. from the NRI.
✓ The family member or dependent or beneficiary or any acquaintance of
NRIs in India can get this card from our branch and the NRI can top up
this card through his/her online NRE / NRO account with us.

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✓ The family member or dependent or beneficiary or any acquaintance of

NRIs in India does not have to open an account for himself. He can use
this card for ATM/POS/Online transactions in India.
✓ Maximum Amount of one-time load Is Rs 1,00,000.00
✓ Card applicant must be a resident Indian. Applicant has to fill an
application form and needs to give one Identity and Address proof for
KYC purposes.
✓ NRI Family Card can be topped up any number of times.
✓ The card is valid for 10 (Ten) Years from the date of issue.

Liberalised Remittance Scheme (LRS) was introduced by Reserve Bank of

Liberalised India (RBI) in February 2004, to facilitate resident individuals to remit funds
Remittance abroad for permitted Current or Capital account transactions or a combination
Scheme (LRS) of both up to USD 250,000 per Financial Year (April to March). The scheme is
For Overseas not available to corporates, partnership firms, HUF, Trust etc.
Remittance by The scheme is available to all individuals including minors. In case of remitter
Resident being minor, the Form A2 must be countersigned by the minor’s natural
Individuals guardian.

All other transactions which are otherwise not permissible under FEMA and
those in the nature of remittance for margins or margin calls to Overseas
Exchanges/ Overseas Counterparty for Forex trading are not allowed under
the Scheme.

It is mandatory for the resident individual to provide his / her Permanent

Account Number (PAN) to make remittance under LRS.

Authorised dealers have been vested with discretion for permitting remittance
in excess of USD 250,000 limit under LRS for following purposes with
supporting documents:
a. Medical
b. Education
c. Emigration
d. With prior approval of RBI.

If the remittances exceeding Rs. 7 lacs (Threshold Limit) during the Financial
Year, TCS is applicable in terms of provisions contained in Finance Act 2020.

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Pre-Sanction Credit Process (Retail)

Retail Credit Process

Once the application is sourced by Sourcing Entity and has been submitted to RACPC after KYC
verification and preliminary scrutiny of documents, the process flow is as under:
Process flow at BPR centre
Applications received from courier will be recorded by an assistant in the prescribed applications
received and disposed of register and performance tracking template (web based) at the coordination
desk in RACPC. Cheques received along with the application towards processing fee, advocate’s fee,
valuation fee and stamp charges will be entered separately in registers.
Entered applications will be immediately scrutinized at the Coordination Desk for all enclosures,
documents etc. Later triggers for Advocates, Valuers, Centralized Inspection team etc., are generated
and the file will be placed in the IN tray for processing.
The processing officer should complete the scrutiny @ 15 minutes per application to determine the
following:
• Whether the application has been duly filled in and the applicant is eligible for the Loan
applied for.
• Whether all information / documents needed for appraisal of the proposal / assessing the
Loan amount have been furnished along with the application and KYC process of the applicant
has been done by the sourcing entity.
TAT for RACPC for obtaining reports is
Legal Report - 4 days
Valuation Report - 2 days
Inspection Report - 2 days
Courier TAT - 2 days

Process flow at non-BPR centre

At NON BPR center, the application is usually sourced and processed at Branch Level. The application
will further be processed in LOS/RLMS after QDE (Quick Data Entry) stage and DEDUPE check is
carried out. The processing officer will once again undertake detailed scrutiny of documents. Online
verification of KYC and income documents will also be carried out. Once the Processing Officer receives
and processes the application, an intimation in form of SMS / E-mail is sent to the customer indicating
the following information:

1. Receipt of the proposal/proposal is under review/process

2. Name and designation of the contact person, i.e., Officer/Assistant at customer service
desk.
3. Contact number of the contact person.
In case of any minor discrepancy/ies observed or any document not submitted by the applicant,
Processing officer will contact the customer directly.
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Processing Officer will arrange for Legal Opinion (TIR) and Valuation Report from Bank’s empanelled
Advocates and Valuers respectively wherever necessary. Pre-Sanction survey will be conducted
independently by the designated officer.

Pre-Sanction Survey
1. Places to be visited
For conducting pre-sanction survey, the office will visit
• Residence of the borrower /Guarantor
• Workplace of the borrower / Guarantor
• Actual site/ builder in case of housing loan

2. Visit to Residence of borrower/ guarantor

Pre-sanction survey officer will adopt the following procedure:
• Identify the borrower/guarantor based on the proof of identification.
• Identify the borrower’s/guarantor’s address on the basis of proof of residence.
• Educational qualifications.
• Ascertain period of stay in the current residence.
• Whether owned/company leased/rented. If rented, ascertain monthly rent being paid.
• Ascertain whether he/she has a credit card and name of the card issuer.
• Educational qualification of spouse and children (except minor children). If spouse /
children are employed, name of the organisation, designation, experience, and salary.
• Number of school-going children.
• Number of other dependent relatives staying with the borrower.
• Discreet local enquiries with neighbours, opinion makers etc. to ascertain antecedents,
credentials of the borrower.
• Whether he/she owns a car and/or two-wheeler in own / spouse’s name. The vehicle
number and name of the owner may be recorded and the name of financiers, if any.
• Sanctioning Authority may make enquiries with the applicant’s bankers, if he deems it
necessary.

3. Workplace of borrower/guarantor
Office/workplace of borrower/guarantor (discreet enquiries to ascertain antecedents and
credentials of the borrower/guarantor.)
• In case of salaried applicants with colleagues, salary disbursement authority (also with a
view to confirm genuineness of salary certificate).
• In case of self-employed/ businessmen/ professionals with another firm engaged in the
same line of activity, one or two firm(s) in the neighbour hood/ concerned industry body.

4. Inspection of Site / Builder:

This is to establish the genuineness, track record and reputation in terms of timely
completion of quality projects.
• With a few other reputed builders in the area

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• With a few of the owners of their completed projects to ascertain quality of construction,
timely delivery and conveyance of ownership rights to the purchasers, any litigation/ dispute on
ownership issues.
• With the concerned industry body i.e. Chamber of Housing Industry/ Builder’s Forum etc.
• With the Builder’s bankers.

5. Property proposed to be purchased

• Independent and surprise visit to be made to the property.
• Never along with the borrower or valuer.
• Identify the property based on details in title documents.
• Landmarks for reaching and identification of the property to be recorded
• Accessibility/approachability i.e. all modes of transport/ car/two wheeler only/others.
• Ensure that proper access is available to the property i.e. roads etc.
• Comments on the locality i.e. whether residential/commercial underdeveloped/ trouble
prone.
• Comment whether the area is posh/upper middle class/middle class lower middle
class/slum area.
• Discreet enquiries with the owners/occupants of neighbouring houses in respect of the
ownership of the property, information on any pending disputes/litigation etc.
• Ensure that the property is kept in good and tenantable condition.
• Ascertain whether the property is rented out and, if so, for how long and the rentals per
month/per annum. Whether leased to an institution for occupation of its employees or rented out
to an individual /business concern.

6. Documents Verification
Verification of the following documents/ services can be outsourced by the RACPCs as per laid
down instructions.
• Conducting Residence Address Verification by actually visiting the applicant’s residence,
followed by back-check over phone.
• Conducting Business Address Verification by actually visiting the applicant’s place of
business/office, followed by back-check over phone.
• Conducting Business Phone Verification by making a phone call to the applicant’s place of
business/office.
• Conducting Residence Phone Verification by making phone call to the applicant’s
residence.
• Circles may also consider verification of genuineness of salary slip of income, in some
legitimate way, which may be negotiated at Circle level.
• Web check of Telephone numbers. The service providers carry out a web check of
telephone numbers of landline numbers available in CD format for BSNL and MTNL
connections, to authenticate the phone numbers given by the borrowers.
The RACPCs may utilise the services of verification agencies which have been empanelled for the
purpose, for Personal Segment Loans only. The compliance with KYC norms would, however, continue
to be the responsibility of the Branch/ OSF, who sources the proposals.
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The Branch / RACPC should verify 2% of the cases handled during this period by the outside agency,
as a cross-check of the quality of their services.
The Circle CGMs may exercise the power to appoint local verification agencies and fix the charges for
the scope of work within the terms and conditions approved by ECCB and advised to the Circles vide
Circular PB/PL/177A/17 January 12, 2006. A suitable committee may be set up at the Circle level, for
this purpose, chaired by a DGM.

7. Verification of Income Source

Sanctioning authority will not depend on the papers only for the purpose of verification of income of
the borrower. It will be ensured during the conduct of pre-sanction survey that:
• Borrower has a regular source of income.
• Continuity of the income during the currency of the loan.
• Genuineness of the income shown in the income tax returns in case of businessman.
• Nature of the employer in case of private employment.
• Circles may also consider outsourcing of verification of genuineness of salary slip of
income, in some legitimate way, which may be negotiated at Circle level.
• In case of doubt on the income tax returns filed by the borrower, services of the chartered
accountant other than the chartered accountant of the applicant can be engaged for verification
of the income tax return with the Income Tax Department.

8. Compilation of Opinion reports/Assets & Liabilities Statement on the

borrower/guarantor.
While conducting pre-sanction survey, the official conducting pre-sanction survey will prepare
opinion report on the customer / Guarantors. While preparing opinion report, he shall ensure that
the details submitted by the customer are apparently as per the means of the customer. He may
ask for the proof such as title deeds, revenue records, and copy of RC etc. for verification in case
of doubt. He will obtain the signature of the customer also on the opinion report prepared.

Compilation of opinion report is waived in the following cases:

• Gold Loans (All Variants) - waived in all cases. Circular No.: NBG/PBU/OPS-GOLD
LOAN/8/2019 – 20 dated 21.11.2019
• Auto Loans (All Variants) – waived in all cases for loan upto Rs. 20.00 Lacs. For loans
above 20 lacs ₹ Assets & Liabilities Statement to be obtained and Opinion Report to be
mandatorily compiled as per the extant instructions. Circular No.: NBG/PBU/AL-
AUTOLOAN/24/2019 – 20 dated 21.11.2019
• Xpress Credit (All variants) - waived in all cases.
• Pension Loans (All variants) - waived in all cases.
• Education Loans - Obtention of Assets & Liabilities Statements and compilation of Opinion
Reports waived for loans upto ₹ 7.5 lacs (For loans above Rs 7.5 lacs Assets & Liabilities
Statements to be obtained and Opinion Reports to be mandatorily compiled)

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OPINION REPORT - DEFINITION OF NET MEANS AND RATING

Net Means Rating
Up to Rs. 1.00 lac. Very small Means.
Above Rs.1.00 lacs to Rs.4.00 lacs. Small Means.
Above Rs.4.00 lacs to Rs.10.00 lacs. Moderate means.
Above Rs. 10.00 lacs to Rs. 25.00 lacs. Fair means.
Above Rs. 25.00 lacs to Rs.1.00 crore. Good means.
Above Rs.1.00 crore to Rs.10.00 crores. Very good means.
Above Rs.10.00 crores to Rs.25.00 Large means.
crores.
Above Rs.25.00 crores. Very Large means.

9. Verification of Property
• Efforts will be made by the official conducting pre-sanction survey to locate the property
independently based on the route map and property papers submitted by the borrower.
• boundaries of the property must be verified during inspection of the property.

10. Pre-sanction survey report

While conducting the pre-sanction survey, the officer will use the prescribed format for the product
issued by the bank from time to time and report will be submitted on the prescribed format. In cases
where the processing officer himself is conducting pre-sanction survey also, he will also use the
prescribed format for noting his observations while conducting pre-sanction survey. Branches not
covered by RACPC will use the format prescribed by the Bank. While recording the pre-sanction
survey, the officer will cover the followings:
• Date and time of the pre-sanction survey.
• Details of the place visited.
• Landmark for reaching the place.
• Identification of property.
• General observation on the property.
• Persons contacted.
• Access to property.
• General observations on the customer’s integrity.
• Regular Sources of income of the customer.
• Nature of activity in case of customer other than salaried.
• Verification of the identity proof and address proof if not done earlier.
• Suitability of the customer for the loan.

11. Pre-sanction survey at different Places

• In case customer is not residing locally, or the property is situated at different centre, the
Branch/ RACPC will send the copy of the application along with KYC documents and property
papers to the CIT of the centre Branch nearest to the place of residence/ property.
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• In case the place of residence is at a different centre and property is situated at another centre,
papers will be sent to both the branches. The branch/ RACPC conducting pre-sanction survey will
ensure to maintain TAT of two days.
12. Pre-sanction Survey: Key Points
• Visit to the residence / business place of the borrower /guarantor / third party who has
offered to mortgage his property as a security.
• Discreet independent enquiries should be made regarding borrower(s) / guarantor(s) /third
parties, credentials and antecedents, information about their loans, if any, availed by them from
other branches / banks / institutions etc from the neighbourhood including the actual possession/
ownership of the property offered as a security.
• Third party dealer/supplier/builder must be contacted independently to verify genuineness
of their offer / transaction including verification of credential of third party dealer /suppliers /
builders by discreet market enquiries and from other dealer / suppliers / builders in the
neighbourhood.
• Visit to site of the property proposed to be purchased / mortgaged for physical verification
independently without assistance of borrower/ guarantor and make discreet independent
enquiries with neighbour(s).
• The existence of the property mortgaged / to be mortgaged must be verified
independently.
• Full description of the property with boundaries should be on record so as to have proper
identification of the property.
• Verification of the antecedents of the prospective customers as also the genuineness of
the documents submitted as proof of identity, residence, income, and employment should be
ensured.

13. EMI / NMI COMPUTATION

• Source of income can be regular salary or income from business as per latest income tax
return or agriculture income based on the nature of their activity (e.g. farming, dairy, poultry, and
orchards), land holding, cropping pattern, yield etc. and average level of income derived there
from in the area.
• In case of other income, regular income from all sources including performance/ production
linked incentives; bonus, overtime etc. can be considered, in whole or in part, on the basis of
the average of the last two years, to arrive at the total eligible loan amount.
• Income from other sources like bank interest / dividends of listed Companies, rent,
agriculture income can also be added provided the sanctioning authority is satisfied about the
continuity of the income during the currency of loan. In addition to the applicant’s income, Income
of spouse/children /parents /sib lings may be considered for arriving at maximum loan amount.
Consistency of Income
Sanctioning authority will ensure the consistency of the income during the currency of the loan. To
examine the consistency of income, he will scrutinise the salary drawn during last 12 months or income
tax returns from the salary slips/ income tax returns filed in case of income from business. In case of
businessman, he will ensure that continuity of business will be there and verify the same from business
activity during the pre-sanction survey.
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14. Gross Annual Income and Net Annual Income

Gross Annual Income is total annual income inclusive of all statutory deductions (income tax,
depreciation etc.) during any financial year.

Net Annual Income (NAI) means annual income net of all statutory and compulsory deductions like
income tax, Employees Provident Fund etc. during any financial year.

15. Income not to be considered for Eligibility

Income shown by the applicant which is of temporary nature or where consistency is not there such
as reimbursement of expenditure, food vouchers, one-time arrears, incentive, LTC, medical
reimbursement etc. not recurring / not regular in nature should not be considered as income even
though it reflects in the salary slip.

16. Investigation of Title of the Property:

• The original title deeds of the property should be handed over to the Advocate by branches
/CPCs functionaries/ officer and not by the borrower/ guarantor directly. Any queries, clarifications
of the Advocate should be dealt with by the branch / CPC staff after getting suitable clarifications
from the borrower/ guarantor / third party owning the property.
• If there are number of housing loan cases of same type in an area, it should be handed
over to different Advocates/ valuers and Branches/ CPCs should not rely upon single Advocate/
Valuer.
• Original documents / title deeds must be verified by the Advocate before giving search
report and this fact should also be mentioned in the Title Verification Search Report (TVSR)
submitted by the Advocate.\
• Legal opinion is obtained to avoid the possibility of any prior mortgagee bringing a suit for
the foreclosure of the property within a period of 30 years, as provided under Article 63 (a) of
the Schedule to the Limitation Act. Further the Central/State Govt. can also bring a suit relating
to the immovable property which is offered as a security within a period of 30 years. Accordingly,
It has been stipulated that a detailed chain of title for the prescribed period (30 years) should be
thoroughly examined by empanelled lawyer to ensure that there are no missing links/suspicious
circumstances which create a doubt regarding the validity and legality of the title of the person
who claims to be the owner of the property which is offered as the security.
• In respect of all cases where the loan amount is less than Rs.1.00 crore, the advocate has
to make search of the title of the property for not less than 13 years if it establishes clear and
marketable title. However, if the flow of title is not clear or in the event of any ambiguity about the
title after search for 13 years, the Advocate may make search for not less than 30 years.
• In respect of all cases where the loan amount is Rs.1.00 crore and above, the advocate
has to make search of the title of the property for not less than 30 years irrespective of the fact
that clear and marketable title is established by a shorter search of 13 years.
• In case of Builder Tie Ups (in case of Home Loans), for approval of the project search of
the title for not less than 30 years is mandatory.
• Where TIR is to be obtained from two different Advocates and there is any divergence in
opinion of both the Advocates in TIR, regarding mortgage of a property, matter has to be referred
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to Law Officer/ In house Legal Team, at AO/LHO as the case may be, and act accordingly as per
their guidance before creation of mortgage.
• Selfie of the Inspecting Official at the site, with or without the borrower should be taken as
an integral part of inspection and the same should be kept along with the security documents.
This exemption (with or without the borrower) will apply in respect of all Loans (including Housing
Loans), as the inspection is required to be conducted independently. Digital date should be
imprinted on the photograph.
• At no circumstances, the advocate should submit a Title Investigation Report (TIR)
certifying clear and marketable title of the property with conditions or stipulations to be complied.
Further, the TIR along with all the original documents and certified copies of documents are to be
submitted directly to the operating unit concerned and in no circumstances the same to be handed
over to the borrower/guarantor or his/their agent/representative.
• Advocate has to submit the TIR in the prescribed format only.
• Professional fees/expenses charged by the advocate should be paid by the Bank directly
to them and recovered from the concerned customer.
• Hindu Undivided Family (HUF) - Operating units should exercise greater care in
mortgaging properties of HUFs. Wherever considered necessary, branches should consult the
Law Officer in the Circle/Business Vertical concerned, in this regard.
• If the title deeds are in a vernacular language, full particulars of the title deeds in English
signed by the Bank’s empanelled advocates/solicitors should be obtained. A complete record
must be kept of all such investigations and searches carried out and the reports received from
the local advocates / Bank solicitors.
• In no case photocopy / laminated photocopy of the title deed is to be accepted. Laminated
original documents should also receive a more cautious approach. Where the laminated original
title deeds are considered in exceptional cases, such cases should be treated at par with lost Title
Deeds cases and the process laid down for the lost Title Deeds should be followed.

Obtention of Two TIR

If our exposure is collaterally secured by the following types of properties, a satisfactory Title
Investigation Report (TIR) from two different empanelled advocates should be obtained, irrespective of
amount in all segments (including Housing Loans):-
i.Properties offered by third party guarantors whether individual or non-individual.
ii.Properties acquired through Gift deed.
iii.Properties sold by Power of Attorney holders to our borrower/guarantor.
In case of Housing Loans where properties do not fall into the abovementioned categories, a satisfactory
Title Investigation Report (TIR) from two different empanelled advocates should be obtained in the
following cases:
iv.In respect of Housing Loans where the RERA registration is available and Loan amount is above
Rs.5 crores.
v.In respect of Housing Loans where RERA registration is not available and Loan amount is Rs.1
crore and above.
vi.Second Sales and Loan amount is Rs.1 crore and above.

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17. Title Deeds through Power of Attorney/Gift Deed:

• TIR in respect of POA Sales/ Gift Deed will invariably be obtained from two empanelled
advocates, irrespective of loan amount.
• Scrutiny of Gift Deed and POA by Bank’s Law officer will be waived in respect of loans
upto Rs.1.00 crore.
• However, extant instructions for scrutiny of Gift Deed and POA by Bank’s Law officer will
continue to be followed in respect of loans above Rs.1 crore and for project approvals and for any
such proposals where any clarification or further legal examination is suggested by the
empanelled advocates.

18. Acceptance & Investigation of the Title Deeds in Case of Sale of Property through
Power of Attorney
The Bank’s Law Department has reviewed the laid down systems and processes in respect of property
to be mortgaged where sale deed of the property has been executed by a Power of Attorney holder, to
ensure prevention of frauds. As per their opinion, the legal position in such matters is as under:
• The relationship between the owner of the property and the Power of Attorney holder is
that of a Principal and Agent.
• The Power of Attorney holder acts on behalf of the owner of the property as per the
authority (power) conferred on him by virtue of the Power of Attorney executed in this regard. The
Power of Attorney may be executed for a specific purpose or for general purpose.
• All the acts done by the Power of Attorney holder in pursuance of the powers conferred by
the deed during the life time of the owner of the property (principal) are valid and binding on the
owner and as per the terms of the Power of Attorney, the owner is also duty bound to ratify the
same as if done by him.
• All the acts which are not within the scope of Power of Attorney executed in this regard are
not valid and binding on the principal (owner) even though the acts are said to be done on behalf
of the owner.
• When a Power of Attorney holder executes a Sale Deed, record shall be had to the validity
of the Power of Attorney in this regard. So long the Power of Attorney is in force and not revoked,
the Power of Attorney holder can bind the principal i.e. owner.
• The Power of Attorney executed in this regard stands automatically revoked on the death
of the principal. As such during the life time of the owner/ principal only the Power of Attorney
holder can act/execute the sale deed on his behalf.
• Any sale deed executed by the Power of Attorney holder after the death of the principal is
not valid and binding.
• Even if the Sale Deed is executed by the Power of Attorney holder without the knowledge
of the death of the principal/owner. It is not valid and binding.
• Mere execution of Power of Attorney in favour of a person does not deprive the original
owner of his right to deal with the property independently.
• Notwithstanding the execution of Power of Attorney, a principal (owner) can alienate the
property.
• POAs shall be duly registered except in case of NRIs whose POA shall be attested by
Indian Embassy or notorised thereat.
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• POAs shall be duly registered except in case of NRIs whose POA shall be attested by
Indian Embassy or notorised thereat.
i.Property is mutated in the name of the present owner.
ii.All the relevant utility bills are transferred in the name of the present owner.
iii.There should not be any dispute / litigation persisting on the POA relating to the property under
consideration.
iv.Physical verification of property reports are prepared by officials of RACPC / Branch.
v.In respect of builders where sale transactions take place on the basis of POAs for each project,
operating units are required to obtain confirmation from the principal of the POA each time.
However, DGM (B&O) may be vested with discretion to permit relaxation.

Additional Safeguards:
Apart from the above, the following additional safeguards as suggested by the Law Department at the
Corporate Centre are also to be taken care of:
• Title investigation shall be done based on the original POA only.
• TIR should contain unequivocal opinion on its nature i.e. special POA or general,
enforceability and validity.
• Ensure that same documents are deposited for mortgage as were scrutinised by Advocate
and Bank’s Law Officer to avoid the risk of duplicates being submitted.
• Verify whether the POA is executed for carrying out bonafide transaction of conveying the
title to the property.
• Verify whether the POA executed in this regard is not in lieu of the Conveyance Deed as
stated by the Honorable Supreme Court in its recent judgment.
• Verify whether the principal/owner acted in his own right and disposed / alienated the
property notwithstanding the execution of POA which act of the Principal will render the POA
infructuous.
• Wherever sale of the property is being executed by the POA holder, registration of POA is
mandatory in all cases and the Bank’s Advocate should mention in the TIR that POA is alive and
not revoked.
• Advocate should verify registered Power of Attorney. A clause be incorporated in the
Advocate opinion.
• The advocate should verify the genuineness of Power of Attorney (POA) in all such cases
where sale of the property is being executed by the POA holder, a clause be incorporated in the
TIR.
• Even when Power of Attorney has been registered, confirmation of the principal should be
obtained that he/she has granted the Power of Attorney which is still in force and transactions
already entered on the basis of Power of Attorney are valid and binding on him. It is advisable to
obtain a written confirmation from the Principal confirming the sale.
• Every effort should be made to contact the Principal in person by Bank’s dealing staff for
ascertaining the fact that the person who executed the Power of Attorney is alive.
• If the Principal is residing in a foreign country, POA holder should submit a copy of the
passport of the principal for photo identification duly attested by the Notary public along with the
proof that the principal is alive.
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• A written communication/confirmation from the principal should be obtained invariably with

regard to the Power of Attorney executed by him/ her.

19. Mortgage by Deposit of Certified Copy of Title Deeds

The Operating Units/ Branches are permitted to create mortgage by deposit of certified copy of the Title
Deed in exceptional cases subject to compliance of the following:
• Furnish proof of complaint to the Police Department explaining with reasons as to when
and under what circumstances the Original Title Deeds were lost.
• Give notice to the public at large in a leading National daily and in one Regional News
paper clearly stating that the Original Title Deeds have been lost, giving full details of the property,
and further stating that he/ she wish to create charge on the said property for availing loan/credit
facility.
• The operating units/ branches should fully satisfy themselves in this regard as creation of
Mortgage by deposit of certified copy of the title deeds is fraught with risk.

20. General Guidelines on valuation of security

• The valuation should always be conducted by an empanelled independent valuer i.e., the
valuer should not have a direct or indirect interest in the asset being valued.
• All the necessary / relevant papers / documents should flow directly from the branch to the
valuer & vice versa without routing the same through the borrower/ guarantor concerned.
• The Valuation Report to be submitted by the valuers invariably contains the Fair Market
Value, Book Value, Realizable Value and the Distress Sale Value of the property being valued.
However, for the purpose of determining the present value of the property mortgaged/ to be
mortgaged, the realizable value should be taken into consideration. Also, in the case of Plant &
Machinery, Realizable value to be accepted for valuation purposes.
• For loans above Rs.1.00 Crore wherein primary/collateral offered as security is valued
above Rs.50.00 lacs, valuation reports (not older than 3 months for new connection) from 2
empanelled valuers are to be obtained and in case value of the property is below Rs.50.00 lacs,
single valuation is to be obtained. However, in case of Housing loans above Rs.1.00 Crore
valuation reports (not older than 3 months for new connection) from 2 empanelled valuers are to
be obtained irrespective of the value of the property. Both the valuations to be conducted
simultaneously and time gap between these two valuation reports shall not be more than a
month.
• Valuation report for Asset(s)/ property(ies) to be obtained once in 3 years.
• Where the number of properties offered as security exceeds 10 (ten) and are located at
diverse/ various locations, a notional discount @5% is to be applied on the Realisable value of
the properties and the discounted value should be considered while arriving at the security
coverage.
• In case of variation of 20% or more between the fair market and realizable values as per
the valuation and the guideline value provided in the State Government notification or Income
Tax Gazette, justification on variation has to be furnished by the Valuer.
• Wherever the value of the Asset/property is more than Rs.50.00 Crore, two valuers of
Category ‘A’ may be appointed in order to get the valuation done. In case the difference in the
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valuation arrived at by both the valuers is not more than 15 percent lower of the value to be
considered, but when the difference in value by both the valuer is more than 15 percent branch
may decide on case to case basis and then third valuer in the ‘A’ category, may be appointed and
valuation obtained. In such a case, the average of the lower two valuation out of three valuations
made will be taken as the notional market value of the properties valued.
• Property values reported in leading newspapers as well as property portals such as
magicbricks.com, 99acres.com, housing.com etc., wherever available are to be referred to and
quoted.
• Details of last two transactions in the locality are to be furnished in the valuation report,
wherever available.
• The values quoted by the valuers should be cross-checked by the branch official
concerned by making independent enquiries, property inspection, comparison with recent sales
of similar properties in the neighbourhood and enquiries from parties having good knowledge of
the local property value, for ensuring that only realistic realizable values are accepted.
• The operating units should also ensure that properties offered as security for credit facilities
sanctioned are not purchased from the loan amount disbursed.
• Valuation of properties purchased on a recent date, viz. for a period upto one year from
the date of registration of the property, the lower of Registration Value or Realisable Value
shall be reckoned for arriving at the value of the property.
• The operating units should generally insist on property/ies, which are purchased before
our disbursement. In other cases, operating units should ensure that the properties offered as
security are not purchased out of our loans by verifying end use of funds.
21. RETAIL SCORING MODELS FOR PERSONAL BANKING SEGMENT ADVANCES
As per the guidelines, for migration to the Internal Ratings-Based approach, retail exposures (i.e. upto
a threshold limit of Rs.5 crore in PER, SME and Agriculture segments) are required to be
subclassified into pools based on homogeneity of risk factors. For assigning retail exposures to a pool,
a rating system design is required to be put in place, which considers borrower risk and transaction risk
characteristics, and delinquency of exposures. Probability of Default (PD), Loss Given Default (LGD)
and Exposure at Default (EAD) estimates for each of such pools are derived based on historical
information. Based on behaviour of loan population and NPA incidence the Rating System Design is
reviewed and suitably enhanced.
Keeping the above in view, the Bank appointed M/s CRISIL Risk and Infrastructure Solutions Limited as
consultant to develop scoring models for the Bank’s retail exposures. The consultant has since
completed development of scorecards for all Personal Segment Loan schemes (i.e. Home Loan, Auto
Loan, Personal Loan, Education Loan and Two-wheeler Loan) and the appropriate authority has also
approved the scoring models for implementation.
The scoring models would serve the following purposes:
• Facilitate business growth by enhanced efficiencies in the appraisal and sanction process.
• Reduction of Turnaround Time (TAT).
• Price the borrower for a given product based on credit scores.
• Facilitate evaluation of risk through aggregation of data relating to specific clusters and
other characteristics.
• Evaluate quality of assets in the Bank’s portfolio.
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Salient features of the scoring models

• The score range is split into multiple score ranges on a 10 – grade scale, each
corresponding to a credit grade, with grade 1 being the best and grade 10 being the worst in
terms of credit behaviour. Credit scores falling into the same credit score range are to be treated
at par. The credit grades corresponding to higher scores are indicative of better credit behaviour
and vice versa.
• The scoring models will serve as a credit decision-making tool and will strengthen the
existing system of sanction or rejection of loan applications. While proposals which fall in the top
score range would be sanctioned, those falling in the bottom range would require to be declined.
However, the Circle Management Committee (CMC) would have the power to override this in
exceptional cases. For proposals falling in the intermediate range, the proposals may be
considered after credit enhancement, (e.g., by selecting the mode of repayment which carries
higher scores, improving Loan amount to Value ratio or Net worth to Loan amount ratio etc.) which
would improve the overall scores and thereby take the scores into clear sanction range.
Otherwise, the proposals would require to be sanctioned by the authority as given below:
i.Proposals that fall into the “indeterminate” range at RCPCs may be continued to be sanctioned
and put up to the Assistant General Manager of the Region for Control clearly indicating that the
loan was in the indeterminate range.
ii.Proposals that fall into the “indeterminate” range at AGM headed outfits would continue to be
sanctioned by the Assistant General Manager /Chief Manager and are not to be sent to the next
higher authority. As the proposal will in any case be reported for control to the next higher
authority, the fact that the score is in the indeterminate range and has been sanctioned should
be recorded.
iii.Proposals falling within the sanctioning powers of Committees are to be dealt with as in above.
iv.Regarding Education Loan, since the scheme has been drawn up as per IBA Model Education
Loan Scheme, loan applications conforming to the terms of the loan scheme cannot be declined
based on cut off scores. Therefore, the scoring model will not be used for decision making but
will be applied only for determining regulatory capital requirements under Basel II. The credit
scores will only be indicative and will be used for post-acquisition monitoring tool.

22. Consumer Credit Information Report (CIR)

• CIR reports can be used for assessment of the borrower’s past payment behavior and
current capability to service the loan.
• Among other things CIR contains repayment history of upto 36 months in each loan/credit
facility availed by the borrower from the CIBIL member institutions.

CIR Features: Account Status : There is a field named ‘STATUS’ in CIR. “Blank” Status Field indicates
that the outstanding balance in the account has not been written-off. If the ‘STATUS’ is not blank, it
shows the status of the stressed assets when the amount due is written-off by the bank and/or suit is
filed.

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Loan applications of the borrowers whose ‘Account Status’ is not “Blank” should be handled as under:
Account Status Facility reported
Credit Card Non-Credit Card
Settled Accept Reject
Settled post Write- Accept if single instance. Reject
off Else deviation may be
approved by the
empowered authority.*
Written-off Deviation may be approved Reject
by the empowered
authority*.
Restructured Deviation may be approved Deviation may be approved by the empowered
by the empowered authority* only in cases where: - the repayment is
authority*. rescheduled and the performance is since
satisfactory.

In cases where loans have been restructured under

notifications issued by the State/Central
Governments under special circumstances
*Empowered Authority would be the Sanctioning Authority not below the rank of a Chief Manager who
may approve the deviation after satisfying himself/ herself that there is no history of multiple such write-
offs / restructuring. In particular, the satisfactory performance of a secured loan after an incident of write-
off may be considered a positive sign.
Even if ‘Status’ of the account is ‘blank’, for loan assessment in the Bank, the account will be classified
as “an account in default” if one or more of the following conditions are true about the DPD:
a. Present DPD is more than 30 days.
b. DPD 60 days or more on more than one occasion during last 12 months
c. Asset Classification as “SUB” (Substandard), “DBT” (Doubtful), “LSS” (LOS/RLMSs), or
“SMA” (Special Mention Account).
Overdues seen in the CIR would be dealt with as below:
• One overdue monthly payment in 24 months would be allowed provided DPD did not
exceed 30 days, but not in the last 6 months.
• A single credit card default (settled or otherwise) more than 5 years old, regardless of
amount, may be ignored provided there are no other instances of overdue and credit discipline
is demonstrated by regular repayment of other loans.
Discretionary Powers for approval of deviations in respect of ‘Accounts in default’ as per the
aforesaid criteria:
“Empowered Authority”
a. Overdue amount upto Rs.10,000/-
Sanctioning authority not below the rank of a Chief Manager may approve the deviation after satisfying
himself/herself that the borrower has not defaulted wilfully, that there is a prima-facie merit in the

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borrower’s claim, if any, that the character and integrity of the borrower are beyond doubt. Facts
considered for approval of the deviation should be recorded in the loan approval note.
b. Overdue amount above Rs.10,000/-
For loans sanctioned by RACPC and other CPCs – AGM of the CPC For loans sanctioned at branches
– AGM(RBO)
For loans sanctioned by Committees - Sanctioning Authority
Discretionary Powers to approve deviation for any default/write-off appearing in CIBIL in respect
of non-Credit Card dues (HL Only)
Upto 10K AGM (Branch)/(CPC)/(RBO) or concerned Credit Committee
DGM (B&O) for sanctions up to the rank of AGM or the concerned Credit
Above 10k-50k
Committee

Product wise requirement of two Reports

Product Loan Amount 2nd CIC ReportReports
Home Loan Above Rs.10 lakhs CRIF HIGHMARK
Auto Loan Above Rs.5 lakhs EXPERIAN
Education Loans Above Rs.4 lakhs(USL) CRIF HIGHMARK
Above Rs.5 lakhs (Sec)
Xpress Credit Loans Above Rs.4 lakhs Experian
Pension Loans Above Rs.4 lakhs Experian

PRODUCT-WISE CUT-OFF CIC SCORES

PRODUCT CUT-OFF SCORE
Home Loan No Cut-off scores below 520 and score 12 should be dealt
with precaution
Auto Loans 606 for Govt Salary Package Account Holders; 689 for
Others Score -1 .. may be considered
Education Loans -1 or >591 for unsecured loans
-1 or >685 for secured loans
Xpress Credit Loans 650 for Govt/Defense salaried customers
670 for Corporate Salaried Customers
Pension Loans No Cut-off if PPO is with us
>658 if PPO not with us

Search on CERSAI Portal

In terms of extant instructions, a search on the property must be conducted on CERSAI portal before
sanction of loans to ensure that the property to be financed is free from any encumbrance and to avoid
multiple financing on the same property.

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Pre-Sanction SME

The pre-sanction credit process comprises three stages viz., appraisal & recommendation, assessment
and sanction. An indicative list of functions under each stage of the pre-sanction credit process is given
hereunder.
1. Know Your Customer:
KYC is the process of a business verifying the identity of its clients and assessing their suitability, along
with the potential risks of illegal intentions towards the business relationship. KYC is also important to
identify the Beneficial Owners and Shell Companies.

2. Central KYC Registry: As per CKYCR guidelines, the data (Customer Information,
Photograph, Signature, KYC Documents) in respect of all account based relationships
established by the Bank are required to be uploaded on CKYCR portal within T+2 days of such
establishment of relationship. Account based relationship includes all types of loan accounts, non-
fund based accounts like Bank Guarantee, Letter of Credit etc. and all type of deposits accounts.
3. Legal Entity Identifier (LEI) - To improve the quality and accuracy of financial data
systems for better risk management. Applicable on Sole Proprietorships, LLPs, Partnership
Firms, Trusts, Pvt. Ltd. Co. Public Ltd. Co., Govt. Companies, OPC, Insurance companies, HFCs,
NBFCs, Non-profit companies etc. Made mandatory by RBI for the Borrowers having total
FB/NFB exposure of Rs. 50 Cr and above (next phase for 5 crs.to 50 crs.)

4. Preliminary Appraisal and Due Diligence-

Prima facie acceptability of the proposal will be examining the following aspects:
• Bank’s lending policy and other relevant guidelines/RBI guidelines.
• Prudential Exposure norms.
• Advisories of CRMD in respect of approach towards lending.
• Industry Exposure restrictions.
• Group Exposure restrictions.
• Industry related risk factors.
• Credit risk rating.
• Whether the activity being performed by the company is legal and profitable.
• Profile of the promoters/senior management personnel of the project,
• List of defaulters, (RBI list of defaulters/wilful defaulters, CICs)

5. Indicative Check list of Due Diligence

Branches/Processing cells should access data base of :
• CICs Defaulters’ List/Wilful Defaulters’ List (suit filed as well as nonsuit filed) as well as
verify Credit History by means of Credit History Reports provided by them.
• For all loan accounts above Rs.5 crores, banks are required to report particulars of
account and account classification including SMAs to Reserve Bank of India through the reporting
system commonly known as CRILC (Central Repository of Information on Large Credits). These
details must be checked at the time of appraising prospective new connections, as well as at the
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time of processing renewal/enhancement proposals in respect of existing borrowers by

undertaking a search in CRILC database.
• Employees PF Organisation Site for defaulting companies.
• ECGC caution list/Specific Approval List etc.
• Banned List of Promoters of SEBI.
• Loan Rejections/CRA Slippages in CPPD site (See Scrolling message in News Board on
State Bank Times).
• List of Disqualified Directors available on the website of Ministry of Corporate Affairs (MCA)
i.e. http://www.mca.gov.in
• i-Probe
• List of Non-Cooperative borrowers.
• IBG defaulters list.
• Audited financials submitted by the companies should be independently verified with the
audited financial statement filed with MCA.
For Corporate Borrowers: Independent verification with website of MCA shall continue.
For Non-Corporate borrowers: Turnover of the Units as mentioned in the audited balance sheet need
to be verified with GST returns and Income Tax returns of the customer for the respective financial year.
Moreover, along with the audited balance sheet, the borrowing Units need to submit usual KYC
documents in respect of the auditor firm viz. copy of address proof and identity proof like PAN card,
Driving license, Aadhar Card etc. or alternatively, a copy of GSTN Invoice, issued by the Auditor which
he would have submitted for payment of the bills to the customer. This will ensure genuineness of the
Auditor.
• Reasons for change in the accounting year as well as in auditors, if any, should be
ascertained.
• ROC Search
• Operating units are advised to implement the system of obtaining Letter of Authorisation,
as per the format placed as Annexure. The Authorisation is to be obtained, one time, as an
independent document, in order to be able to provide it separately to the appropriate Authorities
• Roll out of facility of ‘online checklist of various activities to be undertaken at the pre-
sanction stage for verification by the operating functionaries, and certificate on compliance with
terms and conditions of sanction before disbursement of loans’, among others. The afore-
mentioned functionality is an effective tool to strengthen the credit administration process in the
Bank, and accordingly, to be utilized/implemented for all exposures of Rs.1.00 crore and above,
without any exception. Approved copy of compliance certificates, referred to in the said circular,
are to be kept along with loan documents, and be verified (forming part of audit value statement)
during periodic audit exercise.

6. In case of existing accounts:

Where the above due diligence measures, as applicable, have not already been ensured, appropriate
steps must be taken to be in compliance with the requirements. Further, there are many established
groups having multiple companies/SPVs/JVs dealing with the Bank. For such groups, the branch heads
may decide regarding obtention of CIR on group companies, provided the due diligence procedure
outlined above to check the credentials/conduct of accounts has been meticulously followed and
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recorded in the proposal and there are no accounts appearing in default/SMA/ caution list etc. If any of
the accounts of the group company appear in the above lists, CIR from existing banker(s) must be
obtained.
7. In case of prospective new connections:
For prospective new connections, in addition to the foregoing measures in respect of existing accounts,
operating units shall ensure:
• Scrutiny of bank account statements, covering loan accounts and current accounts. For
the purpose, transactions over a period of one year should be reckoned. In case any lead
translates to a new business connection, a view must also be taken as to whether the unit’s
current accounts, if any, with other bank(s) may continue to be maintained or not.
• Obtention of declaration, duly certified by a Chartered Accountant, that (a) there are no
other credit facilities in any bank/Fi/NBFC which is irregular, and that (b) there are no overdue
statutory payment obligations.
• Obtention of declaration regarding credit facilities availed by its Associates and
Subsidiaries from the banking system, confirming also that there are no irregular features in
conduct of their account(s).
• Verification of credentials of all group/connected companies as well as joint ventures from
various sources.
• Financial support for setting up of new ventures or expansion of existing ventures should
not be extended in case the concerned unit belongs to a group which comes under either of the
following categories:
a. Any company within the group has been declared as Wilful Defaulter;
b. Any company in the group is not co-operating with the Bank in finalising settlement of the
Bank’s dues.
• In case of split in a group, the splinter groups will be regarded as separate groups.
Pre-screening of prospective new connections by making a reference to the borrower profiling reports
from M/s Cubictree Technology Solutions Pvt. Ltd (CTSPL) has been made mandatory in the Bank, in
all cases where our estimated exposure is Rs.5 cr and above (aggregate of fund based and non-fund
based exposures).
• Market reputation report from agencies like Cogencis.
• Verification of Central Fraud Registry of RBI.
• Acceptability of the promoter and his ability to bring his margin/promoter’s stake.
• Government regulations/legislation impacting on the industry, e.g., ban on financing of
industries producing/ consuming Ozone depleting substances.
• Applicant’s status vis-à-vis other units in the industry.
• Scrutinize the borrowers MoA/AoA / Partnership Deed/ Trust Deed/ Society Byelaws/ etc.
to (i) ensure that there are no clauses prejudicial to the Bank’s interests, (ii) ascertain whether
any limitations have been placed on the Company’s borrowing powers and operations and (iii)
the scope of activity of the company.
• For Project Finance/Term Loan, branch should examine 1) project cost is prima facie
acceptable 2) Debt/equity gearing is acceptable 3) Promoters’ ability to access capital market for
debt/equity support 4) Project demand, cost of production, profitability, etc. are correct

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• Ask for organizational set up with a list of members of Board of Directors/

qualifications/experience/competence of the key personnel in charge of the main functional areas
e.g., purchase, production marketing and finance.
• Demand and supply projections based on the overall market prospects together with a
copy of the market survey report.
• Current practices for the product/service relating to terms of credit sales, probability of bad
debts, etc.
• Estimates of sales, cost of production, and profitability.
• Projected profit and loss account and balance sheet for the operating years during the
currency of the Bank assistance.
• Borrower may engage services of Chartered Accountants/Cost Accountants/Financial
Consultants/Merchant Bankers etc. for preparation of financial statements, CMA data etc. for
submission to the Bank for availing loan facilities.
• Operating units are required to obtain the mandate, duly filled in and signed, along with
the application form and other requisite details at the time of pre-sanction/appraisal/engagement
of intermediaries by borrowers.
• Obtain history of the concern, its past performance, present financial position, etc. This
data/ information should be supplemented by the supporting statements like Audited profit loss
account and balance sheet for the past three years (existing units). The audited financials should
generally be not more than 12 months old.
• For non-corporate borrowers, irrespective of market segment, enjoying credit limits more
than Rs.25 lacs from the banking system, audited balance sheet in the IBA approved formats
should be submitted by the borrowers.
• The financial statements should be verified with the statements filed with Registrar of
Companies (ROC)/respective Statutory Auditor/Chartered Accountant at the time of
sanction/review/renewal of the limits from the website of Ministry of Corporate Affairs i.e.,
www.mca.gov.in.
• Details of existing borrowing arrangements, if any, should be sought.

8. Financial Due diligence (Both for existing and new connections)

• The financials of the main company and its major associate/sister concerns should be
reviewed, as far as possible, on the basis of provisional financials of the concerns on a common
date.
• Balance Sheet should be free from any material adverse remarks of the auditors. Any
adverse comments must be separately discussed in the evaluation/ appraisal process.
• Verification of Income Tax, Sales Tax, Excise Returns etc must also be ensured.
• Instances of borrowing companies going in for frequent changes in management structure
are on the rise. All dealing Officials are advised to be more vigilant and exercise more than
ordinary care in completion of the due diligence process in respect of such borrowing companies.
In all such instances, the fact must also be recorded in appraisal memoranda and brought to the
attention of credit committees.

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• Searches in the books of the ROC with regard to charges created and satisfied on the
assets of the unit, change in directors, capital structure and major shareholders etc along with
verification of audited financial statements should be carried out.
• Searches in the books of the Sub-Registrar of Assurances should be carried out.
In view of the increase in number of high value frauds, the Top Management have directed that operating
functionary, while scrutinising should verify and cross check few major items of Profit & Loss and Balance
Sheet with the regulatory returns such as sales tax, excise duty, VAT, etc. to ensure that prima facie the
figures are in order.
In view of the above, an indicative list of the important items in Profit and Loss Account and Balance
Sheet which are to be verified/cross checked with the statutory returns mentioned there against are
mentioned below:-
an indicative list of the important items in Profit and Loss Account and Balance Sheet which are
to be verified/cross checked with the statutory returns mentioned there against are mentioned
below:-
Item in P&L Account/ Balance Sheet Returns filed by the unit, with which the figures have
to be cross checked
Capital Balance Sheet available with Registrar of Companies
(ROC).
Increase in Authorised Capital e form SH-7 (Return as per Companies Act, 2013).
Allotment of shares e form PAS-3 (Return as per Companies Act, 2013).
Domestic Sales GST return.
Export Sales G R Form/Softex Declaration Form (SDF).
Purchases Credit claimed in the GST returns.
Quantitative details of Raw Tax Audit Report 3CA (Auditor’s certification of
Materials/Finished Goods Bye 3CD)/3CD.
products/Goods traded.
Salary and wages expenses Quarterly statement of TDS on Salary (Form No.24Q)
filed with IT Department. b) PF/ESI/Professional Tax
Registers/ Returns
Interest payment to outside borrowings Quarterly statement of TDS (Form No.26Q) filed with
IT Department, under Section 194-A – tax deducted at
source from interest other than interest on securities
Payment to Contractors Quarterly statement of TDS other than Salary filed
under Section 194-C(Form No.26Q) with IT
Department.
Net Profit Income tax return and other related documents
submitted to IT Authorities.
Income received by a service provider ST-3 return filed with Service Tax authorities.
(services industry)
Verification of Income Tax, Sales Tax, Excise Returns etc as part and parcel of strengthening due
diligence and as a preventive vigilance measure also must be carried out. In order to enhance the due
diligence process at both the pre and post sanction stage and to detect forged documents /
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representations submitted to the bank at the incipient stage itself, the operating units shall verify the
documents / certificates certified by practicing Chartered Accountants for its authenticity, through the
Unique Document Identification Number (UDIN) and the key fields provided by the certifying Chartered
Accountants through the link “https://udin.icai.org? mode = searchudin”.
9. Concurrent borrowing: Before sanctioning any credit limit, the branch should ensure that
the applicant is not enjoying similar or other credit facilities with other banks. Normally, multiple
borrowing/multiple facilities to the same borrower from two or more banks should not be allowed.
If the applicant is found having any credit facility from any other bank or financial institution,
detailed information should be called from the concerned bank/Fi. The applicant should submit
along with the loan application a declaration regarding the existing credit arrangements and an
undertaking that stocks will not be hypothecated to any other bank without prior approval of the
Bank. Such multiple borrowings by persons, without the Bank’s written consent, should be viewed
as financial indiscipline. The advances will be recalled forthwith in case it was subsequently found
that the borrower had made a false statement in this regard. As far as possible, parties should be
advised to restrict their borrowings to one bank only.
Applicants seeking credit facilities of Rs.25 lacs and over, should furnish in the loan application
information about all pending litigations, which have been initiated by another financier including banks
against applicants, their partners, directors, etc. for recovery of dues. Similarly, in the loan proposals this
information should also be furnished in the appraisal submitted for sanction of credit limits of Rs.25 lacs
and above under other details, along with information on RBI defaulters list/ECGC caution list.

10. Credit Information Company’s (CIC) reports:

Bureau reports from CICs play a key role in sanctioning of loans. Commercial report consists of the
details of the borrower’s Total Liability, Credit History, Asset Classification etc. across all
Banks/NBFCs/MFIs.
As per Credit Information Companies (Regulation) Act, 2005, collection of information on borrowers of
all Banks and Financial Institutions and its dissemination in the form of CP SME CREDIT MANUAL 2022-
23 Page 70 CP SME CREDIT MANUAL 2022-23 CP SME CREDIT MANUAL 2022-23 Page 70 Credit
Information Reports is being done by four Credit Information Companies (CICs) registered with RBI. The
four CICs are:
• TransUnion CIBIL Limited (TCL)
• Equifax Credit Information Services Private Limited (ECISPL).
• CRIF High Mark Credit Information Services Private Limited (CHMISPL)
• Experian Credit Information Company of India Private Limited (ECICIPL)

CICs are providing Consumer Report for individuals and Commercial Reports for Non-Individual entities.
Whereas TCL, ECICIPL, and CHMISPL are offering CIRs under Consumer and Commercial, ECISPL is
offering only Consumer related CIRs and not Commercial CIRs. CIBIL and CRIF High Mark have been
identified as preferred CICs for obtaining report for proposal pertaining to MSME / C&I segment.

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In our Bank, we have to obtain either one or two CICs from these agencies on the basis of following
parameters:
Type of Advances Report from one CIC Report from two CICs
Unsecured Loan Limit upto Rs.2 lacs Limit > Rs.2 lacs
Secured Loan* Limit upto Rs.10 lacs Limit > Rs.10 lacs
(* Not applicable for Loans against Specified Securities)
11. Due diligence on guarantors
i. Individual as Guarantor: Apart from obtaining proof of identification and address as per KYC norms,
the details of income, assets, liabilities, etc. is also required to be obtained as per following indicative
list:
• Bank Account Statement – last 6 months
• Credit Card Statement -- not more than 3 months old
• Salary Slip (Recent date)
• Income Tax Returns
• Income/Wealth Tax Assessment Order
• Details of movable and immovable properties
• Details of liabilities with its terms and conditions

In case of Non-Resident Indian (NRI) or Person of Indian Origin (PIO) or Overseas Citizen of India
(OCI) as guarantor, following due diligence must be done:
• Passport and Residence Visa Copies
• Copy of PIO/OCI Card issued by Govt. of India.
• Copy of relevant pages of passport of parents or grandparents, establishing them as NRI/
being of Indian origin.
• Copy of marriage certificate establishing the spouse as NRI/ being of Indian origin.
• Where face to face interaction is not possible with the guarantor, branches must insist on
certification of documents for photo ID and proof of residence by any one of the following:
a. Banker (our branches/Offices overseas)
b. Notary Public
c. Indian Embassy
• Where the third-party guarantor –individual or non-individual - offers charge on property
standing in their name as collateral, carrying out of Search, Title Investigation and Valuation, just
as applicable to property of promoters and promoter directors, must be ensured by operating
units.
• A photograph of the guarantor should be pasted on the relevant guarantee agreement.
• If the individual furnishing the guarantee is not already covered in course of search / due
diligence carried out for the borrowing entity, separate search for the guaranteeing individual in
RBI Defaulters’ List / ECGC Caution List / Credit Information Company etc. is to be ensured.
• Separate CIF is to be created for guarantors and linkage to Borrower CIF in CBS is to be
ensured.
• In cases where mortgage of property is created/extended at the time of initial grant of
facilities and/or at the time of enhancement of limits, “Income Tax Act– Guidelines for obtaining

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Prior Permission under Section 281 to create a charge on the assets of Business” are to
be complied with.

ii. Corporate as Guarantor

• Memorandum and Articles of Association (MAA). MAA is to be examined to ascertain
whether the company is authorized to provide guarantee.
As per the Indian Companies Act, 2013, making the requirement of having Common seal optional to the
individual companies.
Bank’s guidelines regarding Common Seal - In case a company opts to have a Common Seal: -
Branches should continue to get the Common seal affixed on all documents. In case a company opts
not to have a Common seal: - The company should be advised to amend its Memorandum and Articles
of Association to do away with the common seal and the requirement of affixing of common seal and
also indicate its option i.e., execution of documents either by two directors or by a director and the
Company Secretary. Thereafter, the documents may be allowed to be authenticated as per the option
exercised by the company.

• Certificate of Incorporation
• Certificate of commencement of business
• CIN Number
• Copy of PAN of Company
• Proof of Current Address
• The guarantee should be executed by the director, or some other officer of the company
duly authorised to do so by a resolution passed by the Board of Directors of the company.
• Photograph and identity documents of the functionary so authorised.
• PAN / DIN of all Directors.
• If the guaranteeing corporate has borrowing arrangements, “No Objection” certificate(s)
from the lending banks.
• Search, as is carried out in RBI Defaulters’ List / ECGC Caution List / MCA Site/ Credit
Information Company etc. for a borrowing entity and its Promoters / Directors is to be ensured,
mutatis mutandis.
• The provision of the Companies Act, 2013 regarding providing guarantee or security by
companies should be considered before accepting the guarantee and to be ensured that the same
is valid and enforceable under law.
• All foreign entities are governed by the laws of their respective countries. As such,
constitutional documents for such entities may differ from country to country. In such instances,
D&B report on the entity is to be obtained. Further, in case of complexities, legal opinion on
individual cases is to be sought – covering, inter alia, opinion on constitution of the entity, its
powers and authority in law to stand guarantee, to what extent jurisdiction of Indian Courts may
hold and related other issues.
Note: In case NRI/PIO/OCI/Non-Individual foreign entity stands guarantor to an advance, the
following clause is to be incorporated in the Guarantee Agreement,
“Courts in India will have exclusive jurisdiction to try suit or any other claim arising out of
this guarantee.”
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iii. The legal standing as well as precautions to be taken before accepting guarantee of the
following category of guarantors is furnished below:
• Proprietorship Firm: In a proprietorship, one person / individual conducts the business in
the trade name and owns all the assets of the business. A sole proprietorship is not a separate
and independent legal entity. The proprietor and the proprietorship business is a single entity in
the eye of law. As such, the individual who is the proprietor may execute the guarantee for a loan
sanctioned by the Bank to any person or entity in his separate / individual name.
• Partnership Firm: A partnership does not have a separate legal existence distinct from
its partners. Hence, all the partners, or one or more partners of the firm may, with the specific and
definite authority of the remaining partners, execute a guarantee agreement in the name of the
firm. The partnership deed is to be perused/examined to ascertain the authority of the partners to
execute the guarantee. In the case of death, insolvency or retirement of a partner or admission
of a new partner to the firm, to prevent the operation of Clayton’s Rule, the liability of the partners
should be determined and a fresh guarantee should be obtained from the re-constituted firm, with
the approval of the competent authority.
• Limited Liability Partnership (LLP) Firm: An LLP is a body corporate formed and
registered under LLP Act, 2008, and is a separate legal entity distinct from its partners. Therefore,
an LLP may provide guarantee for the loan granted by the Bank to a person/ entity. The
incorporation document/LLP agreement is to be examined to verify that the execution of the
guarantee is authorised and in accordance therewith. The designated partners/other partners
empowered/authorised in the LLP Agreement may execute the guarantee. The LLP shall pass a
Resolution for the execution of the Guarantee as may be provided in the LLP Agreement. A copy
of the Resolution is to be obtained and kept on record as part of security documents.
• Hindu Undivided Family (HUF): Members of a joint Hindu family constitute the HUF. Debt
can be contracted on behalf of the HUF for the purpose of family business, and the properties of
HUF can be charged only for the beneficial interest / necessity of the family. A guarantee executed
on behalf of the HUF can be challenged on the ground that it is not for the beneficial interest of
the family. Therefore, it is not advisable to obtain the guarantee of HUF for a loan granted to third
party. However, individual members of the HUF may execute guarantees in their personal
capacity, which will bind them in their respective individual capacities.
• Trust: Public Trusts are usually constituted for social and charitable purposes, and Trust
property cannot be used for the private advantage of individuals/ trustees or for a purpose in
which trustees have personal interest. Hence, it is generally not advisable to obtain the guarantee
of a public trust for any loan granted to a person/ entity. In a specific case where the guarantee
of a trust is sought to be provided, the purpose of the loan and the trust deed should be examined,
and legal opinion should be obtained for considering such proposal.
• Society: A Society registered under the Societies Registration Act is a separate entity
capable of entering into agreements and contracts. However, as a Society is normally constituted
for welfare activities, the bye laws of the Society and purpose of the loan should be examined
before considering the proposal for guarantee of a Society. Specific legal opinion should be
obtained on a case-to-case basis where a Trust or a Society proposes to provide a guarantee for
an advance.

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• Associations/ Clubs: If the Association or Club is not registered under the Societies
Registration Act or any other law, it will be treated as un- incorporated body. Hence, it is not
advisable to obtain guarantee from such un-incorporated bodies as the individual members of
such institutions cannot be made liable in their personal capacity.
12. Opinion Reports on Borrower / Guarantor
• Opinion Reports should invariably be compiled and updated annually for borrowers in
CAG, CCG, SME and before migration of accounts to SARG. In case of loans under PBBU and
REHBU, Opinion Reports would be compiled once at the time of sanction.
• Compilation of detailed opinion report has been exempted in following cases:
• On constituents with personal loans /overdrafts against Bank’s own Fixed Deposits,
government securities, company debentures or shares, units of mutual funds, life insurance
policies, etc.
• Borrowers availing loans against pledge of Gold, Auto Loans upto Rs. 20 lacs, Xpress
Credit, Pension Loans, Education Loans upto Rs. 7.5 lacs.
• Borrowers availing loans upto Rs.3.00 Lacs in case of AGL and SME segments.
• On petty co-obligants to bills whose liabilities to the Bank do not exceed Rs.2, 500 or, such
other figure as the Bank may decide.
• On co-obligants to usance bills discounted.
• In cases where the Bank so advise, on borrowers against pledge of produce for small
amounts not aggregating Rs.5,000 per party.
• Form of Opinion Report: Opinion reports are divided into two parts viz. i) loans upto Rs.25
lacs ii) loans above Rs.25 lacs.
• Periodic revision of opinions: In respect of a firm dissolved and subsequently
reconstituted, or constituents whose position has suffered deterioration, opinions should be
revised as soon as the facts are known. All other opinions should be revised at least once a year.
Wherever the position of the proprietors/partners also undergoes substantial changes, a fresh
opinion report is to be compiled. Each opinion should be signed by the Branch Manager and
Relationship Manager/Credit Support officer and where the revision discloses no alteration in the
borrowers’ position the words ‘No Change’ should be entered, dated and signed.
• Obtaining Separate Assets & Liabilities Statement: For all loans of above Rs.25 lacs,
branches / operating units / processing cells should obtain statement of assets and liabilities with
following documents:
• Copies of Documentary evidence in respect of assets of Borrowers/ Guarantors
• Copy of IT return filed along with a copy of latest available IT assessment order
• Self-Certification will be the basis for the Opinion Report (if not an IT Assesses)
• Bank account statement with all the Banks for the past one year to be obtained.
• Other assets to include cars, jet, yachts etc.
• Detail term and conditions of liabilities reported including sanction letter, if any.

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• The statement of assets and liabilities is required to be obtained in the form of notarised
affidavit in case of the following types of loans:
New loans For all loans rated (SB-9) and worse.
Existing loans - renewal / enhancement For all loans rated (SB-9) and worse.
Existing loans - rehabilitation / restructuring In all cases

• For loans above Rs. 1.00 Cr, wherein primary/collateral offered as security is value above
Rs. 50.00 lacs, valuation reports (not older than 3 months for new connection) from 2 empaneled
valuers are to be obtained and in case value of property is below Rs. 50 lacs, single valuation is
to be obtained. Both the valuations to be conducted simultaneously and time gap between these
two valuation reports shall not be more than a month.
• The names of all partners of firms and the extent of their respective interests i.e., each
partner’s share in capital and profit, etc. should be entered in the opinion report.
• If a firm has a lady as a partner, it must be stated whether she is literate and not
purdanashin. It should also be indicated whether the lady is able to understand the implications
of the Partnership Letter signed by her and the business transactions the firm is likely to enter
with the Bank.
• Minors cannot be partners in a firm; they can only be admitted to the benefit a partnership
already in existence. The investments of minor partners should, therefore, be deducted in arriving
at the net means of partnership firm; the partners’ investment in associate firms will also have to
be accounted for in a similar manner.
• Whenever ancestral properties of any partner acquired by him on division of the Joint
Hindu Family to which he belonged are included in the means of the partnership firm, a letter
should be taken from the other coparceners of the partner’s family – which as a result of the
division would constitute a separate Joint Hindu Family – authorizing the partner to represent the
family as its nominee and a note to that effect should be made in the relative opinion sheet. In the
case of registered partnership firms, the details of the partnership are on record at the Registrar’s
office. Short particulars of the partnership deeds, if available, and the dates of the partnership
letters should be recorded. u. Associate concerns
• Associate and identical firms, if any, must be indicated in red ink at the top of the opinion
sheet with relative index numbers.
• For the purpose of compilation of opinion reports on the proprietor/partner, investments in
associate firms should be ignored in order to avoid double counting.
• When compiling opinions on firms associated with one another, it is essential to show
details giving the full worth of the firm reported on, less the amounts allocated as their investments
in other associate firms.
• The full worth will ordinarily consist of the total worth of all locally resident partners together
with the amount invested in the firm by outside partners. A deduction must be made (and shown
in the opinion sheet) of all amounts invested in other firms and allocated to the worth of these
firms. The allocation may be in the form of cash or properties and the deduction under these
categories should be shown separately.

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• The same property, cash or other assets should not be included in the worth of more than
one firm.

13. Security for Advances:

• Obtaining security against loan is one of most common risk mitigation practices of the
bank. These loans are classified as secured loans. Normally, there are two types of assets
available to the bank as security in case of financing an activity which are categorised as under:
• Primary Security: Security of those assets which will be created out of the proposed bank
finance (part or full value of assets). For example, hypothecation of stocks, book debts etc. for
working capital loans and Plant and Machinery etc. for Term Loans.
• Collateral Security: Security of those assets which will not be created out of the proposed
bank finance, other than Primary security.
• Apart from security, we are also obtaining personal guarantee of proprietor / partners /
directors / etc. of the entity or third-party guarantee as risk mitigation practices.
Wherever, Collateral security from third party is obtained, personal/corporate guarantee of owner of
collateral security is desirable.
Further, if third party collateral is from Corporate (Non individual) entity, a detailed due diligence should
be done on the financial of the corporate to look for any financial stress/insolvency.
• Collateral Security norms: -
For MSE Sector (both Manufacturing and Services enterprises) no collateral security is to be obtained
for loans upto Rs. 10 lacs (this is also a RBI directive), and for loans above Rs. 10 lacs and up to Rs. 15
lacs the sanctioning authority may consider waiving collateral security subject to compliance with certain
conditions.
For this sector, the Bank has decided to cover all eligible SME advances upto Rs. 200 lacs
(manufacturing and services) and upto Rs.100 lacs (retail trade) under CGTMSE scheme. The cost of
guarantee i.e., Annual Guarantee Fee (AGF) shall be borne by the borrower for all loans (CC &TL)
sanctioned on or after 01.07.2017 (irrespective of the amount, including renewal of Cash Credit
facilities). The matter of recovery, or absorption, of guaranteed fee by the Bank is reviewed from time to
time.
CGTMSE has introduced “Hybrid Security” product, wherein collateral security can be obtained for a
part of the credit facility whereas remaining part of credit facility, upto a maximum of Rs. 200 lacs
(manufacturing and service) and upto Rs. 100 lacs (retail trade) can be covered under CGTMSE
scheme.

Advances to non-farm enterprises in Manufacturing, Trading and Services with credit limits upto Rs. 10
lacs are normally classified under Pradhan Mantri Mudra yojana (PMMY) and covered under Credit
Guarantee Fund for Micro Units (CGFMU).
Other borrowers may be sanctioned credit facilities under Bank’s regular schemes.
• Though primary security is required to be charged in favour of almost in all the cases,
obtaining collateral its value depends on activity proposed to be financed, scheme under which it
is being financed and risk perceived in the proposed finance. The collateral security norms for
trade and services sector are as under:

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Collateral Security norms are linked to the Internal CRA/CUE rating of the borrower instead of ECR
Rating as under:
Loans upto Rs. 1 Crore:
Aggregate Exposure Minimum Collateral Security (% of aggregate
exposure)
Upto Rs. 10 lakhs Nil. Accounts to be mandatorily covered under
CGFMU/CGTMSE
>Rs. 10 lakhs and upto Rs. 1 i. For Accounts covered under CGTMSE: NIL
Crore ii. For Accounts not covered under CGTMSE:
50%

Loans above Rs. 1 Crore:

CRA/CUE Minimum Collateral Security (% of
aggregate exposure)
SB-7/CUE-7 & better 25%
SB-8,9/CUE-8,9 50%
SB-10/CUE-10 or worse 100%

• Authority for approving relaxation in Collateral Security Coverage:

• CGM (Circle)/CGM (BU) may permit relaxation upto 25% in collateral security coverage
for existing units having internal rating SB-9/CUE-9 and better on case-to-case basis.
• ECR of the borrower shall be reckoned for this purpose
• No discretion for units rated SB-10/CUE-10 and worse
• For existing units, in case of shortfall in Collateral security coverage on account of
proposed norms, limits to be renewed at existing level only. A period of one year may be permitted
by the Sanctioning Authority to enable the borrowing unit to bring in the required collateral.
• Personal Guarantee should be mandatory for all units. Any deviation is to be permitted by
an authority one step higher than the Sanctioning Authority.
• In case of Term Loans, if Fixed Asset Coverage Ratio (FACR) is 1.25 or more, no additional
collateral security should be insisted upon, otherwise 25% collateral should be taken.
• A cap of Rs. 3.00 Crs for Term Loan is stipulated where there is no asset creation.
• The above collateral security stipulations shall not be applicable to credit facilities which
are sanctioned under product-specific Schemes or covered under CGTMSE.
14. Time norms and other guidelines for monitoring disposal of credit proposals:
The detailed guidelines on time norms as applicable to the MSME & C&I are as under.
Particulars Timeline for Loan Application Disposal
All loans upto Rs.25 lac 14 days
Loans of Rs.25 lac and above upto Rs.50 14 days
lac
Sanction in case of takeover 14 days
Time norms for RM (SME)

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Limits above Rs.50 lac upto Rs.5 Crore 22 days

Time norms for RM (SME)
Limits above Rs.5 Crore 22 days

• Our Bank has issued stage wise Standard Operating Procedure for the sanction of
Credit Facilities as under:
• Stage-I: - Lead Generation, Preliminary KYC, Market Reputation, customer contact,
customer meeting, obtention of Application form/KYC documents, Sanction letter of existing
bank(s) in case of take of loan, ECR letter, if applicable, Obtention of statement of accounts for
past 12 months, Securities details.

On the basis of above documents, conduct a preliminary assessment of the proposal, take a view
whether proposal is as per bank’s loan policy and other circular instructions / guidelines issued by the
bank from time to time and if found acceptable go for further documents mentioned in stage 2.
• Stage-2: - Obtention of financials, ownership documents, profile of the unit, Associate
concerns details, All statutory approvals, in case of Term loan (Project report), other borrowing
details, IT returns, GST/VAT returns, premises lease agreement (in case of rented premises),
Assets and liabilities statements of promoters and guarantors, details of share holding pattern,
Processing fee.

On the basis of above documents operating functionaries an perform following activities:

Discreet enquiries should be made, financial verification, Credit Information report from the existing
bankers, do the CRA/CUE, pricing negotiation with the customer, Pre sanction survey of unit and
collaterals etc.
• Discreet enquiries should be made, financial verification, Credit Information report from the
existing bankers, do the CRA/CUE, pricing negotiation with the customer, Pre sanction survey of
unit and collaterals etc.
If TL availed from other lender – copy of sanction letter, Title documents, evidence for investment made
so far, Other relevant approvals and operating functionaries can arrange for TIR of the securities,
valuation of securities, TEV study if deemed necessary.
• Stage-4: (if the proposal is sanctioned) – Advise the sanction to the unit, documentation,
Disbursement and charge creation.
Stagewise TAT:
Stage Days
Stage-I 7 days
Stage-II 8-10 days
Stage-III 10-12 days
Stage-IV 5-7 days
TAT prescribed under project Vivek is 25 days.

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Post Sanction Process- Retail

1. Validity of sanction: Sanction is valid for 3 months and interest concession 2 months
from the date of sanction (for home loans). Education Loans and other term loans are valid for 6
months.
In case of revalidation, the proposal would be appraised afresh including obtaining a search report of
the property proposed to be mortgaged for intervening period from empaneled lawyer and a fresh CIBIL
report.
2. Documentations to be obtained
• Documents must be obtained in the appropriate formats, invariably printed out of LOS
only.
• The documents and the schedules attached thereto should be got completed as far as
possible in one sitting and in the same handwriting and using the same colour ink / ball point pen.
• The documents should be correctly filled up. There should not be any overwriting or
erasures. Using white fluid should be strictly avoided. Any mistake should be neatly ruled through
under the signature of the executants. The blank spaces meant for important details, if remaining
unfilled, will render the document invalid. Such insertions in pen should further be authenticated
in the margin by the executants. Similarly, alternate clauses, if any, should be deleted under
authentication of the executants.
• When the documents are executed by the Power of Attorney (POA) holder, the original
POA should be perused to ensure that the person giving the POA has properly executed the
POA. The power so given should be verified to ensure that it contains the necessary power to
execute the particular document. For instance, if mortgage is it to be created, the POA should
contain powers to mortgage on behalf of the donors of the POA. If the mortgage is for securing
credit facilities sanctioned to a third party and not to the donor of PA, then the PA should
specifically contain the power to that effect.
• Certain documents such as Wills, Mortgages, (other than Equitable Mortgage) etc. are
required to be witnessed by 2 persons. Failing this, such documents will not be admitted in
evidence. However, unless specifically provided for, no document should be witnessed / attested.
• The immovable properties should be described with reference to their survey numbers,
patta number, etc., along with their boundaries exactly as mentioned in the original title deeds.
Location or site maps should always be drawn and kept along with the loan documents.

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3. Execution of Documents
• All pages and schedules 0f the document should be signed as signed in the application
and the name should be spelt out in block letters under the signature in the last page. Signatures
should be at the end of every document and also at the end of the schedules. The document must
be properly filled in before execution.
The document should not bear double dates such as ‘25 / 26 May 2011. All documents should uniformly
bear the same date.
• The stamps / stamp papers should be properly cancelled. At least some portion of the pre-
printed document should be hand-written / type-written on the stamp paper and signed with date
by the executer.
• Interest clause must be mentioned correctly. The rate of interest and the mode of payment/
rests should be mentioned with sufficient clarity as per the terms of sanction. Signatures of the
persons should be obtained at the end of each page, wherever there are insertions, and on all
the stamp papers affixed to the document. If a Borrower / Guarantor signs in left hand, a small
note should be annexed to the document recording the said fact that the Borrower / Guarantor
has so signed.
• Execution of Documents on the basis of Power of Attorney is not permitted for resident
Home Loan borrowers, except borrowers employed in Defense Services, Para Military Forces
and NRIs. The POA would be restricted to close relatives namely Spouse, Father, Mother,
Brother, Sister, children, Father-in-Law and Mother-in-Law.
• Where the Borrower/ Guarantor is an illiterate person, the contents of the documents
should be explained in a language known to him and the fact of such explanation should be
recorded.
• If the executant is an illiterate person, his left-hand thumb impression (right hand thumb
impression in the case of women, by convention) should be obtained on all the documents. It is
always advisable to obtain a photograph bearing clear identification of such person and the same
should be kept on record. Thumb impression is also necessary for authenticating each and every
blank filled in the document.
• In case the signature is in a vernacular language or the document has been affixed with
thumb impression of the Borrower / Guarantor, it will be necessary to obtain a separate letter of
declaration in the vernacular language confirming that the contents of the documents have been
properly read over and explained to the executant in the vernacular language and that the
executant has affixed his thumb impression or signature in vernacular language only after
understanding the nature and contents of the documents.

4. Stamping of Documents
• The stamps/ stamp papers should be properly cancelled. Cancellation gives a proof that
the documents were adequately stamped at the time of execution. Signature without date and
contained entirely on the stamp will not result in effective cancellation.
• A document should never be ante-dated. If a date on the document appears to be prior to
the date of stamping or the date of purchase of stamps, such document would be treated as
invalid on the grounds that it has not been duly stamped.
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• The special adhesive stamps on documents should be cancelled at the time of affixing the
stamps. Any person required by Section 12 of Indian Stamp Act to cancel an adhesive stamp and
who fails to cancel it in the manner prescribed by the Section is punishable under the relevant
provisions of the Stamp Act.
• When two or more sheets of stamp papers are used, a portion of the document should be
written on each of them, lest the instrument should be deemed as un-stamped/ under stamped.
• Again, if the document is execution by two persons are made at two different place and
stamp duty is higher at second place, difference amount of stamp duty is to be paid to make the
document adequately stamped.

5. Collection of Stamp Duty

• Documents must be stamped as per the Stamp Act. Anun-stamped/ understamped
document will be inadmissible in evidence (Section 35 of Indian Stamp Act, 1899). If a particular
document is not adequately stamped at the time of execution for some reason, the defect can be
remedied by submitting the documents to the stamp authorities within 30 days from the date of
execution and paying the required stamp duty. The Court may also, at its discretion, permit the
documents to be admitted as evidence on payment of appropriate value of stamp duty and
penalty, which may be up to ten times the value of the stamps to be affixed / ten times the
difference between the paid and the eligible stamp duty.
6. Additional precautions in Execution of Documents
• No credit facility should be released without execution of all the security documents
including the guaranteed document.

Within the limitation period, Revival Letter as per the proper format is to be obtained. Signature of
the Borrower(s) in the Balance Confirmation Letter / Revival Letter and in the original documents is
to be compared to ensure that the Borrower has not changed the style of signing.
7. Place of Execution
Documents can be executed at any of the following places:
• RACPC/Branches
• Special Documents Execution Desk (SED)
• Applicant’s residence / business place/ mutually agreed place by MOBILETEAM
Date and place of execution is recorded in the documents. Where two executants are signing a
document at different places and/or on different dates, the fact of their doing so and the correct date and
place must be mentioned by them in their own handwriting.
8. Document Execution Register
The particulars of documents, Applicant’s address, dates, amounts and names of signatories etc. will
be entered by the documentation officer in the Document Execution Register under his signature. A
narration reading that the documents were read before by the executants and the implications
explained to them will be incorporated under the signature of the Documentation Officer.Any other
security document executed by the borrower / guarantor(s) will also be entered in the Document
Execution Register.
All the executed documents and recital will be checked by the CM / AGM (RACPC) for the
correctness there of Chief Manager/ AGM(RACPC) will sign these documents on behalf of the Bank
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wherever required and also sign in the Document Execution Register in token of having checked
them and made a record thereof.

9. Latest indtructions: (Circular No.: NBG/PBU/OPS-MISCELLANEOU/1/2022 – 23 Date:

12 Apr 2022)
With a view to ensuring uniformity in the implementation of IRACP norms across all lending institutions,
certain aspects of the extant regulatory guidelines are clarified and harmonized which are applicable to
all banks. The extant instructions on IRACP norms specify that an amount is to be treated as overdue if
it is not paid on the due date fixed by the bank. It has been observed that due dates for repayments are
sometimes not specifically mentioned in the loan agreements, and instead a description of due dates is
mentioned, leaving scope for different interpretations. Henceforth, the exact due dates for repayment of
a loan, frequency of repayment, breakup between principal and interest, examples of SMA/NPA
classification dates, etc. shall be clearly specified in the loan agreement and the borrower shall be
apprised of the same at the time of loan sanction and at the time of subsequent changes, if any, to the
sanction terms/loan agreement till full repayment of the loan. In cases of loan facilities with moratorium
on payment of principal and/or interest, the exact date of commencement of repayment shall also be
specified in the loan agreements. In case of existing loans, however, compliance to these instructions
shall necessarily be ensured as and when such loans become due for renewal / review.
Accordingly, the arrangement letter to be obtained from the borrowers should include the following
details: -
• Exact Due Date for Repayment of Loan
• Frequency of Repayment
• Break up of Principal and Interest
• In case of moratorium the exact date of commencement of repayment
• Examples of SMA / NPA Classification: To be provided for all loans

10. Creation of Charge and Equitable Mortgage

• Equitable Mortgage
Obtain all the original title deeds in original from the borrower in the chain of title. Where all the
originals as a foresaid are not available, then minimum previous two transactions/sales title deeds
should be obtained from the borrower along with a declaration explaining non-availability of the
original title deeds in respect of past transactions to the satisfaction of Bank authorities. This will
enable to mitigate the risk in case of advances against multiple title deeds for the same property.

For creating Equitable Mortgage of a flat/independent house by a member of a CoOperative Housing

Society, NOC is absolutely necessary to ensure that no dues of the society are outstanding against
such member, and a declaration that the society has not created any prior charge over the property
which is subsisting.

In case Applicant, has applied under a housing project already approved by the Bank, detailed legal
formalities will not be required as such formalities should have been completed for the total project.
However necessary documents relating to marketable title for specific property may be insisted
upon.
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Ordinarily an equitable mortgage by deposit of title deeds of the immovable property should be
obtained to save high cost of legal expenses involved in registered mortgage. The title deeds of the
landed property/ flat/ house etc. must be examined by the Bank’s advocate who should certify in the
search report that the mortgagor’s title to the property is clear and that a valid equitable mortgage
can be created. Where title deeds are not available or where it is considered necessary by the
sanctioning authority, a Registered Mortgage of the immovable property should be obtained.

• Collateral:
If mortgage of the property being financed is not possible, sanctioning authority may accept, at it
discretion, security of adequate value in the form of Life Insurance policies, Government Promissory
Notes, shares/ debentures, gold ornaments or such other liquid tangible security as may be deemed
appropriate, subject to the margins stipulated in the schemes for finance against the securities
concern.

• Interim Security Pending Creation of Mortgage

Wherever creation of mortgage is likely to be delayed for any valid reason, suitable security including
third party guarantee, as considered necessary, may be taken for the interim period. The Agreement
to Mortgage should be executed by the borrower and the mortgage, as prescribed, must be created
subsequently at the earliest.

• Equitable Mortgage based on Gift Deed

In case of creation of equitable mortgage (EM) on the property transferred by way of a registered Gift
Deed, the original registered Gift Deed should invariably be deposited along with other documents.
The registered Gift Deed in all such cases is a document of title. If the original registered Gift Deed
has been lost / misplaced and the mortgage is proposed to be created based on certified copy of the
Gift Deed, the certified copy of the Gift Deed/title deed should be accepted only in exceptional cases
where the original is conclusively proved to have been destroyed or lost and after obtaining prior
approval from the controlling authorities.

It may be confirmed that the FIR has been lodged in respect of the lost title deed and the
advertisement in respect of the loss of the title deed has been published in a prominent national and
a regional news paper.

An affidavit of the borrower/ guarantor is to be taken declaring that the title deed has been lost. The
affidavit should also contain i) full particulars of the property, ii) reference to the FIR lodged and iii)
the details of advertisement published in a prominent newspaper.

It has also been made mandatory that whenever any property is taken as security (primary/ collateral)
based on Gift Deed, clearance must be obtained from the Law Department without fail. This is in
addition two TIR from the Panel Advocate.

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• Mortgage by Deposit of Certified Copy of Title Deeds

The Operating Units/ Branches are permitted to create mortgage by deposit of certified copy of the
Title Deed in exceptional cases subject to compliance of the procedures as stated above.

• Creation of recital
Where a mortgage by deposit of title deeds is accepted at a RACPC/ Branch, which is at a notified
center, the under noted procedure should be strictly followed: -
• All persons interested in the property as owners must attend to make the deposit in the
presence of the AGM/CM RACPC/ Branch Manager/ Authorized Officer and two other
employees of the Bank.
• Particulars of the deposit must there after being entered in the Title Deeds Register; the
entries being verified by the AGM/CM RACPC/ Branch Manager/authorized Officer and
signed by him and the two other Bank witnesses. In the case of recital for enhancement, it is
incorrect to deliver the title deeds back to the borrowers and ask them to redeposit the same
to create a fresh mortgage as such a step would, in some cases, postpone the priority of the
Bank’s charges. Mortgagor(s) must on no account be asked to sign/ initial/attest the register;
otherwise, the mortgage would be construed as a simple mortgage, which may fail for want
of stamping and registration. Further, no acknowledgement for the receipt of the title deeds
by the Bank is issued to the depositors. No writing whatsoever is to be taken from the
mortgagor(s) at the time of the deposit of the title deeds.
• After a day or two subsequent to the deposit of the title deeds and the creation of the
mortgage, the depositor(s) should be required to address a confirmatory letter to the Bank.
This letter confirms the fact of the deposit having been made and the intention of the depositor
in doing so. It would be preferable to arrange with the borrower for this letter to be sent by
Registered Post.
• On receipt of the letter bearing the postal date stamp should be retained along with the
title deeds.
• Although equitable mortgage is an oral transaction, which does not attract stamp duty and
registration charges, it is possible to obtain a Memorandum of Deposit of title deeds to
property. It contains the terms and conditions of the advances, proves beyond doubt the
intention of the borrower to mortgage his property and can be registered with the Sub-
Registrar of Assurances thus providing the general public with the notice of charge or
encumbrance.
• An equitable mortgage by deposit of title deeds is possible notwithstanding the existence
of the registered mortgage executed by the borrowers earlier in favour of the Bank. It is not
necessary that the Bank should execute a Deed of Re-conveyance in favour of the borrower,
and thereafter, accept equitable mortgage by deposit of title deeds. In any case, since the
first registered mortgage is in favour of the Bank, the subsequent equitable mortgage being
also in favour of the Bank, will not affect the interests of the Bank. If no amount is due and
payable under the first mortgage, the entire sale proceeds of the mortgaged property will be
available to the Bank for liquidating the outstanding due under the equitable mortgage.

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• If a mortgagor wishes to inspect his title deeds, he may be allowed to do so at the Bank in
the presence of the CM RACPC/ Branch Manager/ Authorized Officer but he must not on any
account be permitted to take them away from the Bank.

• Custody of Original Title Deeds

All title deeds and mortgage documents held against advances must be kept in the fireproof cabinet
by Authorized Official in Single Custody after being recorded in the Miscellaneous Securities Register
or in the Title Deeds Register.
Title deeds along with related mortgage documents to be kept separately from other documents.
Valuation Reports shall not be kept along with the title deeds. However, TIR must be kept along with
the Title Deeds.

11. Insurance
Insurance of Immovable property:
• The house/ flat purchased/ constructed with the Bank’s finance should be insured against
the risk offire/ riots/ earthquakes/ lightning, floods, etc. In the joint names of the borrower and the
Bank for the value of the construction alone, price of land is not to be included in the sum insured.
Home Loan customer will be offered an insurance cover for a period of 15years or for the tenor
of the loan, which ever is lower, subject to its renewal from time to time. However, the customer
would have the option of taking insurance cover for shorter/longer tenor subject to renewal of the
policy from time to time.
• The lump sum insurance premium as a part of the project cost is to be considered with a
view to encourage the borrowers to insure the property for the entire loan tenure.
• In the case of flats/villas under construction and developed by builders, property insurance
should be taken after the completion of construction and the borrower/owner has taken
possession of the property. It would, therefore, be in order to take property insurance at the time
of disbursement of the last instalment of HomeLoan.
• In case of independent houses under construction, property insurance may be taken at the
time of disbursing the first instalment of Home Loan.

Insurance of movables
• The vehicle purchased is to be kept comprehensively insured in the name of the borrower
for the market value or at least 10% above the loan amount outstanding, whichever is higher, and
the Bank’s interest as a hypothecatee should be noted in the certificate of insurance and
insurance policy. A copy of this is to be retained with the loan documents.
• In Auto Loans a copy of Insurance policy for 1st year to be obtained and retained with the
loan documents. Borrower is expected to keep the vehicle insured. But for the subsequent years,
copy of insurance policy with Bank’s interest as hypothecatee may not be obtained. Operating
officials may endeavor to obtain the same if account becomes NPA.
The above relaxation in instruction pertaining to insurance is not applicable to auto loans for Rs.20
lac and above.
• Insurance details are to be entered in CBS and maintenance of Insurance register is to be
discontinued.
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• In case of Two-wheeler loan, vehicle to be insuered for 3 years upfront, with hypothecation
clause in favour of the Bank.

12. POST DISBURSEMENT INSPECTION

• Physical verification of the properties mortgaged to the Bank must be meticulously followed
in case of all loans. Further, property inspection must be carried out and recorded at each stage
of disbursement in home loans.
• During inspection, the dealing Officer will verify the end use of funds disbursed, collect
acknowledgement of draft / Banker’s cheque and make follow up for sending equitable mortgage
confirmation letter, etc. if not received.
• Post disbursement inspection within 15 days in respect of all Loans disbursements and
thereafter every quarter for the first year of the advances to ensure that mortgage formalities have
been completed, Bank’s charge on property noted and possession of the property is taken by the
borrower. The 2nd and 4th inspection should be carried out preferably by a different official.
• Verify the progress of construction in terms of disbursement schedule.
• A copy of the approved plan for flats and construction of houses should always be carried
along to have a comprehension about whether the construction is as per the approved plan or
any deviations observed, in case of home loans.
• Noting of Bank’s charge on property in Society record in cases of Housing Loans to
members of Housing Society.
• Post sanction inspection will be carried out by the operating units for Auto loans, Education
loans and Personal loans as under: -
• Post disbursement inspection of vehicle must be carried out within 15 days from the date
of disbursement in respect of auto loans.
• If there is default in auto loan, then an inspection will take place.
• The branch/RACPC will initiate 1st Post Sanction Inspection for Xpress Credit, SBI Saral,
Festival and Education loans within a week of the accounts being classified as RG “3”.
• In case of Two-wheeler loan, for Standard assets periodical inspections will be waived
after initial inspection. However, if there is a default of 1 monthly instalment, inspection would be
required. In case of NPA accounts inspections would be made twice a year. Inspection register
will be maintained properly.

13. INSPECTIONS
For Standard Assets:
• Initial inspection(s) at the time of disbursement/ release of instalments.
• Post disbursement inspection by RACPCs / Branches within 15 days of disbursement in
all cases.
• Randomly selected 5% of the accounts should be verified by Inspection every month.

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• Property inspection is to be carried out and recorded at each stage of disbursement

thereafter once in every 3years.
• If repayments are in arrears for two successive months, inspection should be conducted
immediately.
• Inspections should be recorded in Inspection Register.
For NPAs:
• At half-yearly intervals
• Initiation of immediate action under Negotiable Instrument Act against customer for
bouncing of 1stpostdated cheque (Sections 138, 139, 140 & 146 of the Negotiable Instrument Act
dealing with dishonour of cheques and provides punishment for the said offence) /Dishonor of
ECS or S.I. (Section 25 of the Payment and Settlement System Act, 2007 provides punishment
for dishonour of electronic funds transfer on account of insufficient funds etc.) The details of
procedure to be followed for return of cheque/ dishonor of ECS, S.I. has been elaborated in
Master Circular on Home Loans.
Daily checking of Reports
The following reports are required to be checked and appropriate measures are to be initiated to plug
the loopholes to avoid accounts becoming irregular/ NPA:
• listof_NPA_Accounts_lond2572.txt.gz
• probable_NPA_Report_lond2463.txt.gz
• overdue_loans_lond2497.txt.gz
• Loan balance file
• CC/OD balance file
• Account Limit Expiry in next 15 days report(br2581)
• Irregularity report (br2391) (br2392)
• Holidays granted NPA accounts(br2595)
• Report on Irregularity due to Excess Drawings –BR2397-01
• Fail_standing_instructions_dayd0197

14. ECS follow up

• In terms of RBI Circular No. RBI/2012-12/444/DPSS. CO. CHD. No. 1622/ 04.07.05/2012-
13 Dated 18.03.2013, no fresh Post-Dated Cheques (PDC)/ Equated Monthly Instalment (EMI)
cheques (either in old format or new CTS-2010 format) shall be accepted by lending banks in
locations where the facility of ECS/ RECS (Debit) is available.
• Section 25 of the Payment and Settlement System Act, 2007 provides punishment for
dishonor of electronic funds transfer on account of insufficient funds etc. The provisions of Section
25 of the said Act are like Sections 138, 139, 140 & 146 of the Negotiable Instrument Act dealing
with dishonor of cheques and provide punishment for the said offence.

15. PDCs
• Recently in June 2020, National Payments Corporation of India (NPCI), has advised for
conversion of Post-dated cheques (PDCs) to NACH (Debit) mandates. In this connection, RBI
clarified that Section 25 of Payment and Settlement Act, 2007 accords the same rights and
remedies to the payee (beneficiary) against dishonour of electronic fund transfer instructions
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under insufficiency of funds as are available under Section 138 of Negotiable Instruments Act,
1881. Considering the protection available, there is no need to obtain additional cheques, if any,
from customers in addition to ACH Debit mandates.
• NPCI has further advised that as migration of ECS to NACH has been completed for all
locations across India, banks should not accept PDC or Security PDC from its customers and all
existing PDCs/Security PDCs may be converted into NACH (Debit) mandates.
• Accordingly, RACPCs/RACCs/SMECCs/SECCs/SMECCCs/Branches/ Other BPR outfits
who have accepted PDCs/Security PDCs from customers are advised to convert all such PDCs
to NACH (Debit) mandates and ensure that they accept only NACH (Debit) mandates and not
PDCs from customers in future.

• Notice under Section 138 of NI Act

Steps to be taken when a cheque is dishonoured on account of:
• Insufficient funds
• Closing the account
• Stop payment of cheque (because insufficient funds).
Step 1: When a cheque is dishonoured the branch has to give a notice in writing to the drawer within 15
days of the receipt to information by it from the bank regarding there turn of the cheque. Enter in the
separate register for this purpose and monitor.
Step2: If the drawer fails to make the payment of the said amount of money to the Bank within15 days
of the receipt of the notice mentioned in Step-1, proceed to
Step 3: File a complaint before the Metropolitan Magistrate or First-Class Magistrate, within one month
from the date of cause of action.
16. Non-Cooperative Borrower
A non-cooperative borrower is one who does not engage constructively with his lender by defaulting
in timely repayment of dues while having ability to pay, thwarting lenders’ efforts for recovery of their
dues by not providing necessary information sought, denying access to assets financed / collateral
securities, obstructing sale of securities, etc. In effect, a non-cooperative borrower is a defaulter who
deliberately stone walls legitimate efforts of the slenders to recover their dues.

Post Sanction Process- SME

1. Post sanction process comprise of 3 stages

a. Follow up function
• To ensure the end-use of funds.
• To relate the outstanding to the assets level on a continuous basis.
• To correlate the activity level to the projections made at the time of the sanction renewal
of the credit facilities.
• To detect deviation from terms of sanction.
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• To make periodic assessment of the health of the advances by noting some of the key
indicators of performance like profitability, activity level, and management of the unit and
ensure that that the assets created are effectively utilised for productive purposes and are
well maintained.
• To ensure recovery of the installments of the principal in case of term loan as per the
scheduled repayment programme and all interest.
• To identify early warning signals, undertake SMA/SAR review and reporting, if any, and
initiate remedial measures thereby averting the incidence of incipient sickness.
• To ensure compliance with all internal and external reporting requirements covering the
credit area.
b. Supervision function
• To ensure that effective follow up of advances is in place and asset quality of good order
is maintained.
• To look for early warning signals, identify ‘incipient sickness’ and initiate proactive remedial
measures.
c. Monitoring function
• To ensure that effective supervision is maintained on loans/advances and appropriate
responses are initiated wherever early warning signals are seen.
• To monitor on an ongoing basis the asset portfolio by tracking changes from time to time;
• Chalking-out and arranging for carrying out specific actions to ensure high percentage of
‘Standard Assets’.

2. Indicative list of activities involved in follow-up, supervision and monitoring

FOLLOW-UP
• Conveying sanction of advances to the borrower detailing the terms and conditions and
obtaining acceptance thereof
• Preparation and submission of returns on credit facilities sanctioned for control purposes
• Completion of appropriate documentation before disbursement of loans/ advances;
keeping the documents in effective custody and maintaining validity by periodic revival of the
documents during the currency of the loans/advances.
• Creation of charge over security and completion of all relevant and applicable formalities,
including creation of Registered or Equitable mortgage, creation of second charge and
registration of charge with ROC. Subsequently, periodic search of charge with ROC should
be done to protect the Bank’s interest.
• Ensuring compliance by the borrowers of all pre-disbursal formalities and requirements
and continued compliance with the terms of sanction till loans/advances are liquidated.
• Conducting pre-disbursal inspections and verifications (including verification of subsisting
charges on the assets of limited companies by search at ROC) as laid down.
• Conducting periodic inspection/visits at stipulated frequencies.
• Arranging for and supervising computation and recording of Drawing Power for disbursal
of the facilities.

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• Obtention from the borrowers, and scrutiny/analysis of various financial and nonfinancial
statements viz., Stock statements, other control / MIS statements such as, FFRs / QRRs,
Cash Budget, annual and mid-term financial statements etc. and initiating appropriate action
thereon.
• Ongoing scrutiny of transactions in the various accounts by perusal of registers, vouchers,
etc. to watch for proper conduct of loan accounts, healthy turnover therein and proper end use
of funds.
• Ongoing verification of assets charged as security, to ensure availability and safety of the
assets and safety of the Bank’s advances.
• Maintaining ongoing contact with the borrower and co-lenders and keeping abreast of
developments in the borrower entities and business environment.
• Securing and ensuring ongoing availability of insurance cover for the security charged to
the Bank.
• Securing and maintaining CGTMSE/ECGC cover where applicable.
• Timely recognition of unsatisfactory features in the conduct of the advance, such as: delays
in project implementation, Unusual developments/changes in the business or business
environs, Shortfall in achievement of production/sales as compared to the projections,
Defaults in payments due under fund-based facilities/Defaults in the commitments under non-
fund based facilities, Non-fulfillment of financial obligations to the Bank, co-lenders and
creditors and nonpayment of statutory dues, etc. and any other deficiency observed during
periodic inspection visits.
• Advising borrowers to initiate required action to check/remove the foregoing unsatisfactory
features and submitting reports to controlling authority on further developments in the matter.
• Operating units have to obtain a certificate from the auditors of the borrowing entities on
an annual basis to the effect that all Statutory dues including EPF dues have been paid by the
borrower. This will be obtained annually at the time of submission of Audited Financial
Statements by the borrower. In case of new advances, the certificate must be obtained
alongwith the loan application as part of due diligence process.
• Ensuring obtention of refinance from concerned agency, wherever applicable.
• Ensuring maintenance of proper records/files covering the advances to a borrower for
scrutiny/inspection by various internal and external authorities.
• Ensuring collation/maintenance of data as appropriate for submitting reports/returns/
reviews, etc. to various higher authorities in the Bank and to external agencies.
• Obtention of required data/proposal from borrower and preparation of review/renewal of
credit facilities, as prescribed.
• Processing requests for irregular drawings and reporting these to the controllers as per
procedure; and initiating steps to regularise the accounts and submitting reports thereon.
• Follow-up of and rectification of irregularities pointed out in the various inspection/audit
reports, including RBI Inspection Report, RFIA, Credit Audit Report, Verification Audit Report,
Concurrent Audit Report, Stock Audit Report, Spot Audit Report, Forensic Audit Report,
Statutory Audit Report etc.
• Recovery of applicable charges/fees/penalties etc. as per extant instructions.

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• Preparation of reviews of IRAC, identification of deteriorating assets/ potential NPAs,

recognising any early warning signals which may lead to asset quality deterioration, SMA
review and initiation of corrective action where warranted.
• Account-wise follow-up of NPAs for recovery/rehabilitation/restructuring, preparation of
related recommendations to appropriate authority for approval

Supervision
• Ensuring proper follow-up of advances and observance of systems laid down by the
Bank at the operating level. Periodic and random examination of registers, accounts and
books at the branch, scrutiny of periodic statements received, control registers and
files/records covering the advances will assist this process.
• Ensuring that security documents are kept current and that officials concerned
observe all related documentation formalities.
• Ensuring that the functions at the follow-up level are performed diligently and as per
extant instructions of the Bank.
• Ensuring that (i) proper arrangements are in place for the recovery of applicable
charges/ fees/penalties etc. and (ii) income leakage is checked.
• Engaging in ongoing interaction with the officials responsible for follow-up on all
critical matters relating to the loans/advances.
• Maintaining ongoing contact with borrowers and co-lenders and keeping abreast of
developments in borrower entities and business environment.
• Scrutiny of (a) periodical statements and financials received from the borrowers and
(b) control statements/reports prepared on the advances. Ensuring that corrective steps
as required are taken and reports to higher authorities, where necessary, are submitted.
• Periodic inspection of security at the intervals prescribed for the supervisor.
• Ensuring that compliance is maintained with instructions laid down regarding
systems and procedures; maintenance of books/registers is in order, and action is taken
for rectification of irregularities pointed out in the various Audit/Inspection reports.
• Conduct periodic assessment of the information thrown up by IRAC reviews and
ensure identification of deteriorating assets and initiation of corrective steps.
• Exercise control over NPA management, Stressed Assets Review & Re-porting and
ensure effective follow-up for recoveries/rehabilitation/restructuring with approvals from
concerned/appropriate authority
• Ensure timely reviews/renewals of credit facilities.
• Initiate appropriate measures for upgradation of credit skills of lower level
functionaries.

Monitoring
• Ensuring that effective supervision is maintained on loans/advances by the lower level
functionaries responsible for follow-up and supervision. Scrutiny of returns/reports received
from these line functionaries, interaction with them, feedback from customers, commentary in
inspection/ audit reports etc. will assist this process.

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• Monitoring of high value advances through specific focus on these in the returns/reports
received on loans/advances and by keeping watch on the developments in the borrower
company/industry.
• Ensuring non-recurrence at the operating levels of commonly noticed lapses/irregularities
pointed out in various audit reports.
• Extending guidance to down-the-line functionaries on the ‘follow-up’ and ‘supervision’ of
the Bank’s credit exposures especially those at risk.
• Examination of NPAs with a view to recognising problem assets, drawing up
recovery/upgradation path for these and monitoring the recovery process.
• Redressal of customers’ complaints
• Ongoing evaluation of credit management skills at the branches and offices under control,
interaction with the supervisors and initiating appropriate interventions.
• The GMs of the concerned networks will have responsibility for monitoring the overall credit
portfolio in their respective networks.

Standard Covenants
• Standard Covenants are classified into two parts i.e. Mandatory Covenants and Mandatory
Negative Covenants.
• There are 20 Mandatory Covenants and 17 Mandatory Negative Covenants.
• Mandatory Covenants are those activities, which the borrower should undertake during the
currency of the loan.
• Mandatory Negative Covenants are those activities, which restricts the borrower to
undertake during the currency of loan, without prior approval of the Bank.
• In case, the borrower want to undertake any negative activity or any relaxation in them,
the Borrower(s) shall give 60 day’s prior notice to the Bank for undertaking any of the negative
activities to enable the Bank to take a view. If, in the opinion of the Bank, the move
contemplated by the borrower is not in the interest of the Bank, the Bank will have the right of
veto for the activity. Should the borrower still go ahead, despite the veto, the Bank shall have
the right to call up the facilities sanctioned.

4. Disbursement of Credit Facilities

• For units with exposures above Rs.1.00 crore (FB+NFB Limits), online checklist of various
activities to be checked is available in the LLMS. Operating units will need to take a print out
of the compliance certificate, generated from LLMS, which will be put up to appropriate
authorities for obtaining their approval for disbursement of loan.
• Till the stage of disbursement, whatever has been done by the credit officials, are simply
paper work and the Bank is not out of funds. In other words, the lending doesn’t take place.
But, when the credit official receives the request for disbursement, he should be extra
cautious as the moment disbursement took place, Bank is out of funds and the actual lending
started. The disbursing / credit official should take the following precautions (illustrative)
before disbursing the funds:
• Visit the unit before disbursement.
• Verification of actual expenditure (part of margin already incurred).
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• Certification by auditors / architects / engineers for the actual expenditure incurred.

• Whether the disbursement is actually required at this point of time.
• Ensure margins as per sanction terms at each stage of disbursement
• Ensure genuineness of the suppliers and that the payment are going the correct party and
account.
• Ensure direct payment to suppliers.
• Obtain copy of Invoices and kept on record to ensure end use of funds.

5. Various tools for FSM

• Statement of stocks & book debts
Each borrower should submit a statement of stocks and book-debts, on the standard format, available
in the Manual on Loans and Advances, Part-1, Chapter-6, Annexure FSM-3, usually at monthly intervals
(within 20 days of the succeeding month) or as per the terms of sanction/scheme. Non-submission of
such statement in time would attract penal interest as per instructions in force. While timely submission
of stock statements should remain under constant attention of the concerned field officers/RMSMEs,
Asset Verification Officers in SMECs, RMSMEs and AMTs for the purpose of supervision/monitoring,
branch managers/managers of division/CM (Maintenance) at SMEC/RMSMEs/Relationship Managers
at AMT should verify the register every month. The stock statements should be filed unit-wise and in
chronological order and retained as part of the record. The borrower has to submit the stock statement
at intervals as specified in the sanction letter. Further, such statement as on the annual balance sheet
date should be obtained from every borrower enjoying advances against security of stocks/book debts.
• Obtention of GST Returns: With the introduction of GST regime, all Business entities,
except exempted category of Units, are required to submit GST returns at monthly/ quarterly
intervals to Government Authorities which contain detailed information on Sales/ Purchases,
Sellers/ Buyers with their GST Nos. etc. As a measure to improve the post-sanction monitoring
and due diligence process, it has been decided to obtain copies of the following GST returns
along with Stock and Receivables Statements, Financial Follow-up Reports (FFR), Quarterly
Review Report (QRR) from the borrowers having Working Capital exposure (FB+NFB) of
Rs.50 crore and above, at half yearly intervals:
GST Return Purpose (details contained)
GSTR 1 Monthly Return that summaries all Sales (outward
supplies).
GSTR 2 Monthly Return that summaries the details of Purchases
of taxable goods and/ or services.
GSTR 3 Monthly Summary of sales and purchases along with tax
liability.
The Audited Financial Statements submitted by the Borrower to be compared with GSTR-9 &
GSTR-9A, which are the Annual Returns, for validating Sales/ Purchases data.

• Obtention of Statement of Account: The Credit Performance & Monitoring Dept.

(CPMD) at Corporate Centre is putting in place a system using Data Analytics and Business
Analysis tools for monitoring high value advances. With a view to strengthening monitoring of
advances, it has been decided that the Branches shall obtain, at quarterly intervals, the
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Statements of Accounts of all the accounts being maintained with other banks by a borrowal
unit enjoying Working Capital limits (FB+NFB) of Rs 250 Cr. and above for analysis and
monitoring. While CPMD is in the process of putting in place the Analytical Tool, the Branches
are advised to obtain the Statements of Accounts, as stated above, and analyse the same
through PACE Tool, which is part of Project Vivek, for credit monitoring.
• Obtention of Details of Sundry Debtors and Creditors: In respect of Borrowers enjoying
Working Capital (FB+NFB) limit of Rs. 250 Cr and above, Branches/ Operating Units shall
obtain the details of Sundry Debtors and Sundry Creditors as part of the statement of Stock &
Book Debts (irrespective of their internal and External Rating). Details of all invoices above
Rs.10 lakh are to be obtained from the borrowers.
• Valuation of stocks: Borrowers should be advised to value stocks for the purpose of the
stock statement in the same manner and adopting the same basis as for annual financial
statements. In case of Consortium advances, stock statement may be in the format agreed to
by the member banks if it serves the Bank’s purpose.
• Exception: The following categories of borrowers are required to submit stock statements
in different formats as prescribed below:
• Trade & services sector: A modified statement of stocks and book-debts constituting
the primary security for the advances.
• Construction, structural and heavy engineering: Formats of stock statements could
be modified to suit individual borrowers. This category of borrowers shall include in their
stock statements the following additional information.
o amount of original contract and time stipulated for its completion,
o work completed (certified and uncertified),
o work to be completed and period required therefore,
o cost already incurred in relation to estimates,
o Escalation in costs and the extent to which these are covered under the
contract,
o Advances received from customers,
o Retention money,
o Work bills raised and outstanding from contractees, and
o Amount of outstanding guarantees.
• To extend support to the borrowers who have receivables outstanding beyond 180
days from Government Departments/ PSUs such as State Electricity Boards, other
State/ Central PSUs/ other Government Bodies, the cover period may be extended
upto 360 days, subject to the fulfillment of the following conditions:
i.Outstanding receivables should be confirmed by paying Government
Departments/PSUs.
ii.Irrevocable consent from Government Department/PSU concerned to route the
proceeds of the bills through our Bank only.
iii.This facility may be extended to all borrowing units irrespective of their CRA/External
Credit Rating. It is also decided to do away with receivable audit for this limited purpose.
As this measure is going to elongate the operating cycle of the unit, the operating units

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shall ensure that this will not result in diversion of funds. Business Units shall monitor
the utility of this initiative and undertake a review after one year.

6. Drawing Power against Book Debts/ Receivables

• Verification of Receivables: The position of book debts should be checked, specially
where advances have been granted there against. This again may have to be done on a sample
basis by reference to Debtors’ Ledger and other relevant records such as invoices and bills raised
and by checking position regarding :
• periodic confirmations from debtors
• age of book debts in relation to normal credit period
• system of control over book debts and periodic reports to top management of the
unit.
• Monitoring of Export Receivables: The branches are maintaining Export Bills Register,
in physical or electronic form, where details of export are recorded and relative returns submitted
to Reserve Bank of India. In spite of these, there have been many cases of export related frauds,
mainly by way of fake documents and diversion of export proceeds. To strengthen the monitoring
of advances at post shipment stage, it is advised that:
• All export units enjoying post-shipment credit above Rs.10 crore and with credit
rating below SB-9 shall have their export receivables certified by a Chartered
Accountant at half-yearly intervals.
• The Chartered Accountant shall certify the actual level of receivables in the books
of the borrower and age wise position.
• The authority to waive the certification, considering the attendant circumstances,
shall be the CGM (CAG/CCG/Circles).
• Detailed instructions on verification of receivables:
I.Where Cash Credit & Book Debt Limits (both) are below Rs.5 crore:
• Where outstanding of individual debtor are below Rs.50 lakh
Extant instructions, as mentioned in verification of receivables to continue.
• Where outstanding of individual debtor are Rs.50 lakh & above
In addition to the instructions mentioned in verification of receivables,
i.A certificate from the Stock & Receivables Auditor about verification/ genuineness of
receivables to be obtained at yearly intervals.
ii.ECR of the Debtor to be obtained. However, if the ECR is not available, opinion report
of the debtor be obtained from their banker at least at yearly interval.
• Based on satisfactory report, decision on continuation of allocating DP against the
debtor to be taken.

II.Where Cash Credit & Book Debt Limits (both) are Rs.5 crores and above
a. For BBB+ & better rated borrowers:
In addition to the extant instructions ,mentioned in verification of receivables above, a
certificate from the Stock & Receivables Auditor (wherever applicable) about
verification/genuineness of receivables is to be obtained at yearly intervals.
b. For BBB & worse rated borrowers:
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i.For debtors below Rs.50 lacs: In addition to the extant instructions, mentioned in
verification of receivables above, a certificate from the Stock & Receivables Auditor
(wherever applicable) about verification/genuineness of receivables is to be obtained
at yearly interval.
ii.For debtors Rs.50 lacs & above: Along with extant instructions, mentioned in
verification of receivables, a certificate from the Stock & Receivables Auditor (wherever
applicable) about verification/genuineness of receivables is to be obtained at yearly
interval. Besides this, ECR of the debtor is also to be obtained. If rating of the debtor is
BBB or better, DP against such debtors can be permitted. However, if the rating of the
debtor is worse than BBB-/unrated, opinion report should also be obtained from their
bankers at least at yearly interval. Based on the satisfactory opinion report, decision on
allocation of DP against the debtor to be taken.
The debtors, pertaining to the following class of units, are exempted from the above
guidelines:
a. Central Govt. / State Govt. / PSUs
b. b) Debtors covered under ECGC.

• Instructions for verification of creditors:

• In the ‘Statement of Stock and Book Debts’ the borrower has to provide information
on Sundry Creditors in Part-C (other information) i.e. Creditors level at the yearend/ during
the last month/ end of the month. (vide Annexure FSM-3, in Chapter-6 on Post Sanction
Credit Process in the Part 1 of Manual on Loans and Advances).
• In the ‘Inspection Report’ also, the reporting official has to provide comments and
observations on statutory liabilities and pressing creditors.
• For advances Rs. 10 crore and above, the borrowing units have to submit the
‘Financial Follow-up Reports (FFRs). In FFR-I, section-C, levels of sundry creditors need
to be provided and the same to be analysed with projected and actual level of creditors.
• CIR on high value creditors has to be obtained from credit information agencies like
D&B, MIRA Inform Pvt. Ltd. etc., on case to case basis to ascertain the genuineness and
analysing the level of creditors.
In addition to the above, the guidelines regarding conduct of Stock and Receivable Audit should be
complied with. Computation of Drawing Power (DP) is also one of the important aspect in handling loans
and advances. Hence, guidelines in this respect of Treatment of Outstanding Sundry Creditors (SCs),
Buyers’ Credit (BCs) and Unpaid Bills against Letters of Credit (LCs) should also be implemented in
letter and spirit.

7. Computation of Drawing Power (DP) and Maintaining DP Register

• At Appraisal Stage: Assessment of Sundry Creditors: While assessing LC limits, the

level of creditors as a whole and on account of goods purchased under LCs should be firmed up
separately. The level of sundry creditors, usance LC creditors and Buyers’ Credit estimated
should be clearly specified in the computation of ABF. Based on Operating cycle of the unit, the
Maximum Usance period of Letters of Credit ( domestic/foreign) required by the company should
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be frozen by way of a template item in the Proposal. While freezing the period, a small cushion
may be kept to the extent considered necessary.
• At Follow-up & Supervision Stage: Computation of Drawing Power: The Drawing
Power should be arrived at by deducting the following from the “Market Value” of chargeable
Current Assets:
Item Procedure to be followed
If the actual level of Trade Payables (other Trade Payables need not be deducted from the
than LC/BC) is within the level considered for Market Value of Stocks, if the following conditions
assessment of FBWC limit. are satisfied :-
Conditions:
a. There is no dilution in NWC or
deterioration of Current Ratio (CR);
b. Drawings in the account are within
sanctioned limits/DP and the conduct of the
account is satisfactory.
Movement in NWC & CR to be scrutinised from
FFR-I & Stock Statements.
If the actual level of Trade Payables (other Actual Trade Payables in excess of the level
than LC/BC) is in excess of the level in considered in the FBWC assessment is to be
appraisal. deducted from the market value of Stocks.
Wherever LC/BC facilities are allowed and the
Sundry Creditors there against is estimated
separately, any excess in Other Sundry Creditors
from the level estimated in the proposal is to be
deducted from the market value of stocks.
Unpaid bills under Usance LC (within the The amount of such unpaid bills under usance LC
Maximum Stipulated Usance Period), where is to be deducted from the Market Value of
goods have been received / goods are Stocks.
already converted to Receivables / Cash
If unpaid bills under usance LCs, where goods The amount of such unpaid LC bills will be
have been received, are outstanding beyond deducted from Market Value.
the Maximum Stipulated Usance Period on
account of reasons like availing Buyers’
Credit.
In case where the bills drawn under LC have Arrangement may be made to sanction cash
been received, but the relative goods are not credit limit providing facility for drawings against
yet received. the document of title to goods received under the
Bank’s usance LCs and lien for the full amount of
the outstanding bills may be earmarked against
the Market Value of the total stocks including the
document of title to goods received under the
Bank’s LCs.

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If the outstanding Buyers’ Credit is upto the The amount of such outstanding Buyers’ Credit is
Maximum Stipulated Period of Usance, as to be deducted from the Market Value of Stocks.
stipulated in Sanction.
If the Buyers’ Credit is outstanding beyond the The amount of such Buyers’ Credit is to be
Maximum Stipulated Period of LC. deducted from Market Value.

• Valuation of items of Stock Statement:

For the purpose of fixation of drawing power, different components of stocks may be valued as detailed
below:
ITEM TO BE VALUED AT
Imported RM Landed cost (i.e., invoice value plus
customs duty but excluding demurrage, if
any.) or market price whichever is the
lowest
Indigenous RM , consumables, stores & Invoice price or market price or Govt.
spares controlled price, whichever is the lowest
Semi-Finished goods Cost of production or selling price or
market price or Govt. controlled rates,
whichever is the lowest
Finished goods Cost of production or Cost of goods sold or
selling price or market price or Govt.
controlled rates, whichever is the lowest
When stock statements are received at the branch, details like date of stock statement, date of its receipt
at the branch, brief particulars of the security held, the value thereof, the stipulated margin and the
resultant drawing power (i.e., value of security after deducting margin) should be recorded in words and
figures in the Drawing Power (DP) Register, a separate folio being allotted to each account. It should be
ensured that the drawing power in each account should not exceed the corresponding sanctioned limit.
Each drawing power must be dated and signed by the branch manager/ CM (Maintenance) at
SMECCC/RMSMEs, by Relationship Managers at AMT or any authorised official. Obsolete drawing
powers at the same time being cancelled. The DP as recorded in the Drawing Power Register shall be
entered in the system under due authentication of authorised officials.
• Regulation of Drawing Power: While regulating drawings in a cash credit (including
WCDL) account within the Drawing Power (DP) of a borrowing company, it should be ensured
that
• The DP is not given against such assets which have not been considered as current
assets at the time of assessment and are accordingly ineligible for DP. For example, where
‘plant spares` are classified as non-current asset for working capital assessment, this asset
should not be considered eligible for DP though included in the stock statement.
• While allowing drawings in accounts on the basis of stock statements, it should be
ensured that stocks purchased under Usance LCs are invariably mentioned separately
and no DP is allocated against such stocks. This is necessary to avert any possibility of
double financing.

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• Drawing power may not be given against old accumulated (non-moving) or slow
moving stocks.
• Where cash credit limits are granted against book debts, a statement of book debts
with age-wise break-up should be obtained along with the stock statement. Such book
debts should be based on invoices and delivery challans. Drawing power should be
allowed only on such book-debts as are within the norms accepted at the time of sanction.
Generally, book debts of more than six months old should not be reckoned for giving
Drawing Power.
• In case of seasonal industries, though the drawings are regulated on the basis of
the monthly/quarterly cash budgets, however, for determining the advance value of
security charged (value of security minus stipulated margin) the stock statements may
continue to be obtained on the usual format.
• In case of SSI units where working capital credit limits are sanctioned at 20% of the
projected turnover, actual drawals may be allowed on the basis of Drawing Power
calculated as explained above.
• The Drawing Power in each account should not exceed the corresponding
sanctioned limit. Each drawing power must be dated and signed by the Branch
Manager/CM (Maintenance) at SMECCC/RMSMEs/Relationship Managers at AMT or any
authorised official. However, at the same time these officials should ensure cancellation of
obsolete Drawing Power (DP) in the account.
• The D.P as recorded in the Drawing Power Register shall be entered in the system
under due authentication of authorised officials.

• Stock and Receivable Audit (SRA)

Units that are exhibiting symptoms of liquidity crunch may be considered for stock audit. Some of the
symptoms are as follows:
• Pressing creditors
• Overdue interest and term loan installments
• Stagnant stocks
• Undue delay in submission of stock statements
• Falsification of chargeable current assets
• Too many and significant qualifying remarks about stock/receivables in auditors’
report in the balance sheet, etc.
If on considerations of the above aspects, an unsatisfactory scene emerges, a stock audit may
be considered.
Periodicity of SRA and Accounts covered :
a. Yearly Basis :
• Standard accounts with FBWC Limit, TL exposure (#) and NFB limits aggregating to Rs.5
crore and above and having Internal rating of SB-5 and better.
• NPAs with balance of Rs.5 crores and above. However, if a Dynamic Review of rating is
carried out and there is a fall in the rating, periodicity of S& R Audit shall be governed by the
latest Dynamic Rating.
b. Half Yearly :
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• Standard accounts with FBWC Limit, TL exposure (#) and NFB limits aggregating above
Rs.5 crores and having Internal rating of SB-6 and below
(#) In case of Term Loans fully disbursed, the outstanding shall be considered for calculation of TL
exposure, and in cases where TL has not been fully disbursed, sanctioned limit shall be considered.
c. Quarterly :
SRA would be conducted at quarterly intervals for the following category of borrowers, having exposure
of Rs.5 crores and above irrespective of the credit rating:
i.Commodity Traders
ii.IT enabled services
Waiver :
• All Central and State Public Sector Undertakings.
• Loans granted against “Specified Securities”.
• Loans granted under LRD, ABLand ABL (CRE) and e-VFS schemes.
• All loans under “P” segment.
• SRA can be waived in cases other than exemptions given under point no. (a) to (d) above,
by the Sanctioning Authority upto CCCC.
• In case of ECCB sanctions, waiver can be approved by CCCC. Any relaxation / exemption
/ waiver must be highly selective, and whenever such relaxation etc. is recommended to the
appropriate authority for consideration, it must necessarily be justified by adequate and
acceptable alternate mitigants.
• In case of borrowers where the services of ASMs is availed, and the scope of work among
others include stock audit, BG Audit, in such cases, specific engagement of Stock & Receivables
is not required. However, in event of non availability of such expertise with ASMs, the branches
/ operating units can assign the task S&R audit and BG Audit independently. However, it should
be ensured that there is no “overlapping / duplication” of task allotted to S&R Auditor and other
agencies.
In cases where waiver for engagement of services of ASMs have been approved, the guidelines for
conduct of S&R audit shall continue as hitherto.

• Other guidelines :
• In case of take over advance : Stock and Receivables Audit is to be conducted prior
to disbursement of any credit facilities above Rs.5.00 crores except for units having CRA
Rating of SB5 and better.
• SRA shall not be applicable for stand-alone Term Loan facilities. However, where
Term Loan has been sanctioned along with other WC limits or borrower has been
sanctioned stand alone NFB (WC) facilities, SRA shall be conducted as hitherto / above
mentioned periodicity.
• Exposure shall mean the total of credit facilities availed from the bankingsystem
under MBA / Consortium.

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8. PHYSICAL FOLLOW UP: INSPECTION OF THE UNIT

• What to carry while going for inspection:

Inspecting officials may carry with them (i) a list of the fixed assets charged to the Bank (ii) a copy of
the latest monthly stock statement and (iii) a copy of the latest half-yearly operating statement (FFR-
II) as per Annexure-FFR-II received from the borrowing units. The quarter/year-end stock statements
should be compared and reconciled with the corresponding items in the financial follow-up
statements such as FFR-I & II/and year-end balance sheet.

• Verification of assets
• Stocks pledged/ hypothecated to the Bank must be inspected at irregular intervals which
should ordinarily not exceed one month. The basic objective is to ensure that the stated stocks
are physically there and the advances are adequately secured. Wherever possible, all stocks
should be thoroughly verified and compared with that mentioned in the stock statement. Where
the number of items charged to the Bank is large, goods should be stacked according to sizes,
weight, lots, groups, etc., to facilitate inspection. The inspecting official should make an ABC
analysis of stocks and check all high value items during each visit. In other cases, verification
would be possible only on a random sample basis. Different items should, however, be checked
in different visits so that all the major items would be covered over a period of, say, four to six
months. Checking on random sample basis should not, however, rule out repetitive checking of
certain items. Where goods are stored in different places, inspection of all the godowns should
be conducted simultaneously or on the same day.
• Inspecting officials must see that the godowns are properly secured and that all the
conditions of the fire insurance policies covering them and their contents are being observed.
Particular attention should be paid to the effect on the insurance cover of any adjacent
structures, whether permanent or temporary, which are of an inflammable nature.
• Whenever a godown cannot for any reason be inspected, a note must be made in the
inspection register in order to ensure that the contents of the godown are examined at the next
inspection.
• Verification of stocks-in-process may present some difficulties. One may have to look for
fluctuations in their value over a period and verify the data in the context of production capacity,
production cycle, cross tally for raw materials and production figures in the stock statement,
records on input output at different stages and other relevant factors. The available storage
capacities for various items, including for stocks-in-process, should also be examined.
• Where goods are subject to other statutory controls, the stock statement could be
crosschecked with the relative records.
• Checking quality of assets is another problem area and much would depend on the
experience and technical competence of the inspecting officials. A feel could be had by looking
for –
o slow moving, old and accumulated stocks,
o rejections at the time of both purchases and sales by examining the relative records of
purchases and sales returns,
o records of quality control and scrap,
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o book debts under dispute and age of book debts.

o Where doubts arise about quality or quantity, an expert opinion or even a stock audit could
be stipulated.
• Inspection Report:
• On completion of the inspection, the inspection officials should set out their
observations in inspection reports as per Annexure-FSM-6
• The inspection report should also cover comments about the issues taken up with
the borrower during the previous inspection and the impact of the corrective measures
initiated by the borrower on that basis. Copies of the half-yearly progress report, half-yearly
operating statements and the inspection report as above should be filed chronologically
and made available for scrutiny by the Bank’s Inspectors/Auditors. The inspection reports
would also help in the periodic review of accounts of borrowers.
• Frequency of inspection: The guidelines on periodicity of physical inspection/ verification
of assets/ sites/ operations have been reviewed and the modified guidelines in this regard are
furnished below:
• Working Capital: The extant guidelines on monthly inspection have been withdrawn.
Considering the proposal in totality, sanctioning authority may decide on the periodicity based
on the specific recommendation made by the operating units. This is to be mentioned in the
proposal under terms and conditions and specific template approval is not required to be
obtained.
• Term Loan: Existing guidelines on Inspection of Term Loan during project implementation,
after implementation of the project and other normal Term Loans shall remain unchanged.
Further, it is reiterated that: The stipulated periodicity will be the minimum frequency required to be
followed. However, depending upon the criticality/ complexity/ early warning signals etc. of the individual
cases, the operating units may increase the periodicity, if warranted, to protect the interest of the Bank.
The existing scheme specific guidelines on periodicity of inspection shall remain unchanged.
It is to be ensured that all collateral securities are inspected at least once in a year.
Inspections as per stipulated periodicity must be carried out and any deviation/ relaxation should be
considered highly selectively, based on clearly justifiable grounds.
• Inspection of Term Loans: As a term loan is repayable out of cash accruals generated
over a period of time, it is essential that a project is monitored, supervised and followed up on an
ongoing basis throughout the currency of the term loan. The scope of post-sanction follow up
extends beyond merely ensuring the observance by the borrower of the terms and conditions
governing the advance. It involves performance evaluation of the borrowing unit to ensure that
the projected sales and profit are achieved, and the loan is repaid as scheduled. The postsanction
follow-up in case of term loans can be divided into two categories i.e., follow-up during
implementation stage and follow-up after commencement of commercial production.
• Follow-up during the implementation stage: The main objectives of follow-up at this
stage are:
o To ensure that the borrower mobilises the means of financing tied up for the project as per
schedule and according to the requirements of the implementation of the project;
o To ensure that all funds so raised are utilised for the approved purpose without any part
thereof being wasted or diverted for any other purpose;
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o To ensure that the physical progress of the project is in accordance with the project
implementation schedule facilitating completion of the project in time without giving rise to
any overrun; and
o To ensure that, in case any overrun arises for unavoidable reasons beyond the control of
the borrowing unit the promoters bring in their proportionate contribution to finance the
overrun, the balance being provided by the term lenders by granting term loans in the same
ratio in which the original term loan requirements were shared by them. Follow-up at the
implementation stage begins soon after sanction of the Bank’s term loan is communicated to
the borrower. During the implementation of the project, branches should obtain progress
reports as per Annexure-FSM-TL-1 (Manual on Loans and Advances, Part-1, chapter-6) at
quarterly intervals, conduct periodic site inspection. Branches should also obtain audited
annual financial statements i.e., balance sheet and profit and loss account, where the project
implementation extends beyond one accounting year.
• Periodic site inspection: During the project implementation stage upto the
commencement of commercial production, site inspection should be carried out by the
Manager of the Division/Branch Manager/CM (Maintenance)/RMSMES/ Relationship
Manager at quarterly intervals with a view to verifying the physical progress of the project (as
indicated by the borrower in the periodic progress reports) vis-à-vis the project implementation
schedule. In case of TL indebtedness of Rs.5.00 crore and above, verification of assets to be
conducted within 15 days from creation of assets. Machinery identification to be done by
seeking help from qualified staff/ specialised external agencies wherever required.

• Follow-up post-commercial production: Once the commercial production commences,

the unit would be required to submit half-yearly progress reports as per format given in
Annexure-FSMTL-3 (Manual on Loans and Advances, Part-1, chapter-6). The follow-up at this
stage would primarily relate to the day to day operations of the unit i.e., the level of activity,
management, profitability, etc. such that in the long run, the loans are secured and continue
to be standard assets. To this end, the field staff should conduct regular inspections diligently
and intelligently using periodic financial statements, etc. At the end of every year, the
performance of the unit should be measured in terms of,

o predetermined benchmark levels for current ratio, TOL/TNW and interest coverage
ratio and DSCR,
o default in payment of interest/installment to the Bank and to other institutions/banks.
If the unit is not able to perform satisfactorily, penal interest may be charged in the term
loan account. In cases where term loans as well as working credit facilities have been
sanctioned to a borrower, review of TL should form a part of the review/ renewal of working
capital facilities. Stand alone Term Loans also need to be reviewed annually. Term Loans,
which are irregular, are required to be reviewed once in six months. Such Term Loans is
to be included in the periodical review of ‘Special Mention Accounts’.

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9. Quarterly Results Report (QRR)

• QRR is applicable to all listed companies.
• The data available in the published results of listed companies will be filled in QRR-I
(quarterly) and Part-I of QRR-II (half yearly) by the credit officer.
• The review / analysis of published results will be carried out in Part II of QRR II where the
branch functionaries will also offer their comments on the performance of the borrower.
• For listed companies having only Term loans or Non-fund based limits, QRR analysis will
be done on a half-yearly basis, based on published results.
• For week / stressed companies, even if listed, Sanctioning Authorities may stipulate
submission of additional data for monitoring the advances.
• SEBI has stipulated a maximum of 45 days for publication of quarterly unaudited accounts
and 60 days for publication of audited annual accounts. Listed companies should make available
published data to the Bank within a maximum of 7 days from the date of publication of results. If
the published data is not made available to the Bank within seven days after the SEBI stipulated
timelines and the data is not also available in the public domain, it should be treated as an early
warning signal and the operating units shall ask for submission of complete data on FFR, which
shall be subject to more than normal scrutiny. Request for extension of time made to any
regulatory authority would not be good enough reason for non- submission of performance data
to the Bank.

10. Financial Follow up Report (FRR)

• FFRs will be submitted by all borrowers having Fund Based Working Capital exposure of
Rs. 10 crore and above.
• Waiver from submission of FFR should not be allowed for unlisted companies, as it is an
important tool for monitoring financial health of the borrowal unit. Categories of borrowal units
exempted are: i) Central / State Government undertakings ii) PSUs of Central / State
Governments and iii) fully collateralized loans.
• Part I of FFR I and FFR II will be filled up by the customer.
• The review / analysis will be conducted in Part II of FFR I & FFR II where the branch
functionaries will also offer their comments on the performance of the borrower.
• The time line for submission of FFR I will be 52 days from the end of the reporting quarter
(to synchronize with 45 days plus 7 days provided for listed companies to submit unaudited
results) and FFR II within 67 days from the half year end / year end (to synchronize with 60
days plus 7 days provided for listed companies to submit audited results).
• In revised FFR I, borrower has to provide ‘Other Information’ like incurring of cash loss,
increase in investments / loans and advances to associates, overdue statutory liabilities, any
material change in raw material price, labour, power, etc., affected the business. This will help
identify stress in the account.
• In revised FFR II, data in respect of Half Yearly Operating Statement and Half Yearly
Statement of Assets and Liabilities have been aligned with information available in the
published results. Interest Coverage Ratio, Funds flow analysis etc., will be worked out by the
system.
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• In case we are not leaders in Consortium, branch should try to obtain FFR by having a
separate arrangement, by way of exchange of letters, with the borrower.

11. Various FORMATS used in Post Sanction

Formats Nature Action
FFR-I Financial Follow up report To be submitted by unit having FBWC
(Performance in terms of limit of Rs 10.00 Crore and above,
Production, Net sales, Status of submitted quarterly
Working capital funds/Inventory &
Receivables details/ Sundry
Creditors)
FFR-II Financial Follow up report (Half To be submitted by unit having FBWC
yearly Operating Statements and Limit of Rs 10.00 Crore and above,
Balance Sheet) submitted half- yearly
QRR –I Quarterly Review Report-I To be submitted by Listed Companies,
submitted quarterly
QRR-II Quarterly Review Report-II To be submitted by Listed companies
submitted half-yearly.
FSM-3 Stock and Receivables Statements To be submitted monthly by the unit
Format
FSM-4 Follow up Register for monitoring To be maintained by branch for recording
timely receipt of FFRs /statements date of receipt of FFRs /Statements
FSM-6 Inspection Report Format Inspection Report Format
FSMTL-1 Progress Report during Progress Report during Implementation
Implementation of project (in case of project (in case of Term Loan)
of Term Loan)
FSMTL-2 Progress report during Observations recorded by the Inspecting
Implementation of the project (in Officials on the basis of visit and progress
case of Term Loan) reports submitted by the unit.
FSMTL-3 Progress Report after Observations recorded by the Inspecting
Commencement of Commercial Officials on the basis of visit and progress
Operation (in case of Term Loan) reports submitted by the unit.

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544
` Bank’s Loan Policy
The provisions of the loan policy are applicable to the domestic as well as international operations
of the Bank. Based on the Bank’s loan policy, the Foreign Offices (FOs) have their own loan policies
taking into account the regulations and lending practices of the host country.
The Board has authorized the setting up of a Credit Policy & Procedures Committee (CPPC) at the
Corporate Centre for dealing with all matters relating to credit policy and procedures. All new loan
products are also approved by the CPPC.
All decisions of CPPC are put up to RMCB for information. However, Credit Risk Assessment
models and Exposure Limits for various industries are approved by Credit Risk Management
Committee (CRMC) and Risk Management Committee of the Board (RMCB).
The Loan Policy is reviewed once in a year by the Board. All loan products are to be reviewed
Biennially. Business Units/Verticals shall put up review of the products to sub-group of CPPC.
To cater to the varied needs of customers in different segments, the Bank has created different
Business Verticals such as IBG, CAG, CCG, R&DB, FI & MM and also different business groups
under R&DB viz. Small & Medium Enterprises Business/ Personal Banking Business/ Real Estate
and Housing Business/ Agri Business Unit/ Financial Inclusion/ NBFC Alliances. In order to have a
focus on monitoring, management and resolution of NPAs & stressed assets (including SMA-2),
SARG is created.
Aspiration by BVs should be to achieve a minimum aggregate RAROC of 20%
RBO Branches would normally handle all Retail loans including i) All Personal
Segment, e.g., Housing Loans, Auto Loans etc. ii) Exposures pertaining to
Retail Business Agri/SME upto Rs. 50 Cr except schematic lending where specific approval is in
Operations place. All exposures above Rs. 50 Cr would normally come under Commercial
Clients Group (CCG) and Corporate Accounts Group (CAG).

Commercial CCG Branches shall normally handle loans with exposures of above Rs. 50 crores
Clients Group and other than those Accounts & Groups identified for CAG relationship.
(CCG)
The Corporate Accounts Group has been created with the objective to ensure
Corporate focus on the highest quality relationships for the bank. The criteria for selection in
Accounts Group CAG are based on quality (external or internal rating) of the account, business
(CAG) potential and the client’s reputation or strategic importance in addition to the size
of the account.
Bills discounting limits against letters of credit (outside the ABF) ii) e-DFS/ WHR
loans. iii) Builder Finance- (Residential Projects), up to certain approved limits. iv)
Portfolio Purchase of Asset Backed Securitization for which separate policy is in
Exemptions place.

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EXPOSURE NORMS AND CREDIT RISK CONCENTRATION

Exposure shall include credit exposure and investment exposure. The sanctioned limits or
outstanding, whichever are higher, shall be reckoned for determining the exposure to an entity.
However, in the case of fully drawn term loans, where there is no scope for re-drawl of any portion
of the sanctioned limit, the outstanding shall be reckoned as the exposure.

Definition of Single/ Groups of Connected Counterparties as per Large Exposure

Framework of RBI
The exposures to a group of counterparties with specific relationships or
dependencies such that, were one of the counterparties to fail, all of the
counterparties would very likely fail. A group of this sort, referred to in this
Single Counterparty
framework as a group of connected counterparties, must be treated as a
single counterparty.

Group of Connected Two or more natural or legal persons shall be deemed to be a group of
Counterparties connected counterparties if at least one of the following criteria is satisfied.1.
(GCC): Control relationship2. Economic interdependence
RBI Large Exposure Framework (LEF).
Nature of borrower Cap on Exposure (Prudential Norms)
Single Counterparty* 20% of Bank’s Tier I Capital
Group of Connected Counterparties$ 25% of Bank’s Tier I Capital
Single NBFC 20% of Bank’s Tier I Capital
Group of Connected NBFCs
25% of Bank’s Tier I Capital

* In exceptional cases, exposure upto additional 5% of the Tier I capital may be permitted to single
counterparty with the approval of Chairman.
$ on account of COVID-19 pandemic, Bank exposure to group of connected counterparties has
been increased from 25% to 30% of Tier I capital (upto 30.06.2021).
Large Borrower
Large borrower is defined as the sum of all exposure values of the bank to a counterparty or a group
of connected counterparties is equal to or above 10% of the Bank’s Tier- I Capital (instead of total
capital funds as hitherto). The aggregate exposure to all “large borrowers” should not exceed 800
% of Bank’s Tier I Capital.
Enhancing Credit Supply for Large Borrowers through Market Mechanism
1. The Bank has to keep future incremental exposure to large “specified borrowers” within a
“Normally Permitted Lending Limit) (NPLL).
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2. Specified Borrower: Means a borrower having Aggregate Sanctioned Credit Limit (ASCL) of more
than:
a. Rs. 25,000 Cr at any time during FY 2017-18
b. Rs. 15,000 Cr at any time during FY 2018-19
c. Rs. 10,000 Cr at any time from April 1, 2019, onwards
The date on which the borrower becomes a specified borrower is termed as reference date.

3. Aggregate Sanctioned Credit Limit (ASCL): Means the aggregate of Fund based credit limits
sanctioned or outstanding, whichever is higher, to a borrower by the Banking System.

Incremental exposure of the Banking system to a specified borrower beyond NPLL would be
deemed to carry higher risk, which would be recognized by way of additional provisioning and higher
risk weights as under: -

a. Additional provision of 3 percentage points on the incremental exposure of the banking system in
excess of NPLL, which would be distributed in proportion to each bank’s funded exposure.

b. Additional risk weight of 75 percentage points for the incremental exposure to the specified
borrower. The resultant additional risk-weighted exposure, in terms of risk-weighted assets, would
be distributed in proportion to each bank’s funded exposure to the specified borrower.
Exposure on Single / Borrower Groups
Maximum ceiling on Exposure prescribed by Bank (Excluding facilities
Constitution of
granted against specified securities).
Borrower

Individuals as Maximum aggregate exposure of Rs. 100 crs or its equivalent.

borrowers
Maximum aggregate exposure of Rs. 250 crs or its equivalent the above
ceilings will also be applicable to the aggregate of all facilities sanctioned to
Non-corporate ($)
partnership firms which have identical partners.

Corporate (#) As per the Prudential Exposure Norms prescribed by RBI

Note: The exposure to Gems &Jewellery, Diamond Industry, Ship Breaking etc. shall be guided by
the Exposure Ceilings stipulated under the respective policies subject to Large Exposure Norms.

$ Non-corporates will include Partnerships, Trusts, HUFs, Associations and REIT (Real Estate
Investment Trust).

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# Corporates will include Companies, Societies, Govt. Departments, Institutions and Statutory
Corporations and Limited Liability Partnerships (LLP).
The ceiling on single/borrower group exposure limits is not applicable: i) In case of existing /
additional credit facilities (including funding of interest and irregularities) granted to weak/sick
industrial units under rehabilitation packages. ii) In case of borrowers to whom limits are allocated
directly by the RBI for food credit. iii) In cases where the principal and interest are fully guaranteed
by the Government of India. iv) In case of Loans against Bank’s own Term Deposits, to the extent
that the Bank has a specific lien on such deposits. v) To exposure assumed on NABARD. The Bank
will be free to determine the size of the exposure to NABARD, subject to Board approval.

Norms for the Bank Exposure- Internal

a. Autonomous bodies promoted by Central Government/ Profit making Central
PSUs (Maharatna/Navratna/Miniratna)/ SPVs promoted by Profit making
Central PSUs (Maharatna/Navratna/Miniratna)/ State Governments/ PSUs
Single guaranteed by Central Government/ State Government institutions/ State PSUs
Counterparty guaranteed by State Governments (Irrespective of CRA/ECR): - Maximum
exposure :20% of Bank’s Tier I Capital, exposure to be calculated with CCF. In
exceptional cases, exposure upto additional 5% of the Tier I capital may be
permitted to single counterparty with approval of Chairman.
b. Others (without CCF): (Rs. In Cr)

CRA Maximum Exposure

SB-1 &SB-2 42,000
SB-3 & SB-4 22,000
SB-5 & SB-6 11,700
SB-7 to SB-8 6,200
SB-9 3400
SB-10 3400
SB-11 & SB-12 2000
SB-13 to SB-15 1000
a. Autonomous bodies promoted by Central Government/ Profit making Central
PSUs (Maharatna/Navratna/Miniratna)/ SPVs promoted by Profit making
Group of connected Central PSUs (Maharatna/Navratna/Miniratna)/ PSUs guaranteed by Central
counterparties Government/ State Government institutions/ State PSUs guaranteed by State
Governments (only for PQI<5,) Max exposure: 25% of Bank’s Tier I Capital

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b. other cases (without CCF based on PQI: (Rs. In Cr)

PQI % Of Tier I capital Maximum Exposure
PQI<=4 22 62,000
4< PQI<=7 19 53,000
7< PQI<=10 14 39,000
10< PQI<=13 6 16,000
13< PQI<=15 3 6,100
Other Guidelines:
1. The exposure shall be calculated based on Tier-I capital as on 31st March
2. Products under schematic lending shall be guided as per the norms of the
respective scheme.
3. Normally, the above exposure norms should not be exceeded. However, in
exceptional circumstances (Domestic/IBG Proposals), if the exposures in
excess of the above norms are to be considered, the approval from the
respective sanctioning authority should be obtained as a template item.
Substantial Exposure Limit
With a view to mitigate credit concentration risk, the Bank has fixed substantial exposure limits for
the Large Borrowers aligning with the Large Exposure Framework.

Types of Substantial Exposure Stipulation

i) Large Borrower (Single Counterparty or Group of Connected
10% of Tier I Capital
Counterparties)
Not to exceed 300% of Tier I
ii) Aggregate of Substantial Exposures to Single Borrowers
Capital
Not to exceed 600% of Tier I
iii) Aggregate of Substantial Exposures to Borrower Groups
Capital
Exposure at Portfolio Level
Unsecured exposure Not to exceed 30% of Bank’s outstanding total exposure (Domestic
(Domestic + IBG) + IBG)
For scheme specific term loans (e.g., Housing Loan, Education loans
etc.) should be as per the approved schemes which can be a
Term Loan Tenor maximum of 30 years. In other cases, it will be 20 years or life of the
Project whichever is lower (with a minimum tail period of 15%).

The average maturity of any Normally should not exceed 10 years, except loans under /
term loan, including Rehabilitation / Core Industry / Infrastructure / Renewable Energy
moratorium Projects / Securitization of Rent and Toll receivables.
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Term Loans (loans with Review will be done on half yearly interval with a view to ensuring
residual maturity of over that there is no Asset – Liability mismatch beyond the permissible
three years) limit.
Not to exceed 33% of the Bank’s total advances. The limits for sub-
Exposure to Real Estate segments (Presently for i.e., Residential Motgages -23%, Indierct
Sector exposure- 5.5%, Other Commercial Real Estate- 3%, Infra Related
Commercial Estate- 1.5%) must be adhered.
Intra – Group Exposure
Prudential Limits on Intra-Group Exposure:
5% of Paid-up Capital and Reserves in case of non-financial
Single Group Entity companies and unregulated financial services companies. 10% of
Exposure Paid-up Capital and Reserves in case of regulated financial services
companies.
i) 10% of Paid-up Capital and Reserves in case of all non-financial
companies and unregulated financial services companies taken
together
Aggregate Group Exposure
ii) 20% of Paid-up Capital and Reserves in case of the Group i.e., all
group entities (financial and non-financial) taken together.

Non-Fund Based facility not to exceed 100 % Bank’s total fund-

Non-Fund Based Exposure based exposure

In order to reduce Concentration Risk, the Bank shall endeavor to

Sectoral/ Industry Exposure restrict exposure to an industry/Sector upto 15% of the Bank’s Total
Domestic Exposure (TDE). Additionally Risk adjusted industry level
Rail have fixed Maximum Industry Exposure ceiling to be 200% of
Tier- 1 Capital of the Bank (to be within Loan Policy prescription of
15% of Bank’s TDE). However, maximum industry exposure ceiling
to Private sector entities within the overall Industry exposure ceiling
not to exceed 90% of Tier-I Capital of the Bank with no
interchangeability from Public Sector to Private Sector.

Exposure ceiling specific to Risk Management Department (RMD) prescribes RAIL (as
each Industry / Sector percentage of Bank’s TDE) for each of the Industry/ Sector arrived
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based on major factors like Outlook, Portfolio Quality Index (PQI),

Industry PD (Probability of Default) and growth of specific Industry /
Sector in Bank’s exposure. This RAIL specific to each Industry /
Sector is fixed within 200% of Tier-1 Capital. RAIL is fixed for
Industries / Sector with exposure more than Rs 7,500 Cr. However,
considering the expected demand for lending to Industries / Sectors,
with exposure upto Rs. 7,500 Cr but higher than Rs. 5,000 Cr; RAIL
can be fixed. Except for ECCB, no Sanctioning Authority have
discretion to approve any breach of RAIL.

for top 10 exposures as well as single borrower exposures have also

been fixed for Sectors/ Industries, as detailed under: a. In case of
industries, where exposure is >1% of Bank’s Total Domestic
Exposure (BTDE), exposures to Top 10 companies should not be
more than 75% of Industry /Sector exposure. b. In case of industries,
Specific concentration limit
where exposure is > 0.75% of Bank’s Total Domestic Exposure
(BTDE), exposure to single borrower should not be more than 50%
of Industry /Sector exposure. It is to be noted that the exposures
under Specific Concentration Limit will be within Large Exposure
Norms of RBI.
: Top 10 exposure to exclude exposure on Autonomous bodies
promoted by Central Govt. / Profit making Central PSUs (Maharatna
/ Navaratna/Miniratna)/ SPV promoted by Profit making Central
PSUs (Maharatna / Navaratna/Miniratna)/ State Govt./ PSUs
guaranteed by Central Govt./ State Govt. institutions/ State PSUs
Exclusion from Specific guaratnted by State Governments (irrespective of CRA/ECR). Detail
Concentration limit guidelines have been put in place in this regard. Further, considering
the long gestation periods in the infrastructure sector, it is considered
prudent to cap exposure to that sector at 30 % of the Bank’s total
domestic exposure. Any waiver from the above ceilings is to be
approved by ECCB. Half yearly review shall be submitted to CRMC
by CRMD.
Legal Entity Identifier (LEI)
It is a 20-digit unique code that identifies every legal entity (across the globe) or structure that is
party to a financial transaction, in any jurisdiction. Obtention of Legal Entity Identifier (LEI) has been
made mandatory by RBI for the Borrowers having total fund based and non-fund-based exposure

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of Rs. 50 Cr and above. For exposure above Rs. 5 Cr and upto Rs. 50 Cr, LEI will be implemented
whenever RBI’s instructions are issued.
Advances against shares to Individuals and other than individuals
Loans against security of shares, convertible bonds, convertible debentures and units of equity
oriented mutual funds to individuals from the banking system should not exceed the limit of Rs.10
lacs per individual if the securities are held in physical form, and Rs. 20 lacs per individual if the
securities are held in dematerialized form.
Audited Financials
Audited financials along with Tax Audit Report (i.e., Form 3CA, Form 3CB or 3CD) and annual
reports covering Auditor’s Report (Companies Auditor Report Order, wherever applicable) are to be
obtained from the Borrowing units each year and analyzed as part of due-diligence and monitoring.
Audited Financials shall be mandatory for all Corporate Borrowers. However, mandatory audit of
accounts by CAs may not be insisted upon by the Bank for non-corporate borrowers with exposures
less than Rs. 50 lacs from Banking System.
For New Connections: The Audited Financial Statements should generally be not more than 12
months old from the date of close of the relative Financial Year. In case the latest audited financials
are more than 9 months old and upto 18 months, provisional financial statements not more than 6
months old are to be obtained. No new connections are to be entertained if audited financials are
more than 18 months old.

For Existing Connections: In case of listed companies, review/ renewal shall be carried out based
on audited financials not more than 15 months old and unaudited financials not more than 6 months
old. In case of unlisted borrowers, review/ renewal shall be carried out based on audited financials
not more than 18 months old and provisional financials not more than 5/6 months old.

CRA- Minimum scores / Hurdle rates

The Bank as of now has a unified CRA System, which is used for assessing the credit risk of
borrowers as well as facilities (facility rating applicable for exposures beyond Rs.5 crores) viz.,
working capital, term loan and non-fund-based exposures etc., to C&I, SME and AGL segments for
total exposure of Rs.50 lacs and scoring models for all products with exposure of less than Rs.50
lacs. Based on the CRA score, risk rating (SB-1 to SB-15) is awarded to the entity. The SB-16 rating
is assigned to NPA accounts by default. Hurdle rate SB-10 has been prescribed under internal risk
rating model for considering new connection or enhancement in credit limits.

CRA Rating for Restructured/ NPA Accounts

All non-performing assets (NPA) shall be directly assigned with the rating of SB-16 or respective
default grades in case of other rating/ scoring models. In such cases, regular CRA exercise is not

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required to be carried out. However, when the status of the account is upgraded to standard, CRA
rating of the borrower should be made SB15 till dynamic rating / full-fledged CRA is completed.
However, new CRA rating shall be applicable from the date of upgradation.

Dynamic Review of Rating

Dynamic Review of Internal Rating of borrowers who are enjoying aggregate limits of Rs. 500
Crores/ is to be ensured at half yearly intervals (without trigger). In case of borrowers with exposure
of Rs. 10 Crores & above but below Rs. 500 crores, Dynamic Review of the rating to be conducted
as and when triggers are observed. Borrowers with Maharatna or Navaratna status are exempted
from the purview of non- trigger based dynamic review of ratings provided there is no change in their
status (Maharatna and Navaratna Status).

Review of CRA
CRA of borrowal units is required to be reviewed periodically. For units which are assigned CRA
rating upto SB-10, CRA is to be reviewed annually. For units having CRA SB-11 and worse, the
CRA shall be reviewed at half-yearly intervals, except the accounts where Dynamic Rating have
been carried out.

External Credit Rating (ECR)

Besides, the internal risk rating (CRA), it is mandatory to obtain External Credit Rating (ECR) of
borrower for all exposures above Rs. 50 crores from Banking System from any one of the accredited
ECRAs. At present there are seven (7) ECR Agencies namely CARE, CRISIL, India Ratings, ICRA,
Brickwork, SMERA and INFOMERICS are accredited by RBI. International Credit Rating Agencies
are (IRAs) viz. Moody’s, Standard & Poor and FITCH.

Methods of Assessment of Credit Facility (ies)

i) The assessment of working capital is done through a) Turnover Method b) Projected Balance
Sheet Method (PBS) c) Cash Budget Method.
Under the turnover method, working capital requirement is computed at a minimum of 25% of
turnover, of which, at least four-fifths are provided by the Bank and balance one-fifth represents the
borrower’s contribution towards margin for working capital. This method is applicable for sanction of
fund based working capital limit of up to Rs.5 crores or equivalent, as per recommendations of
Nayak Committee.
Under the PBS method, the fund requirement is computed on the basis of borrower’s projected
balance sheet, the funds flow planned for the current/ following year and examination of the
profitability and financial parameters etc. The projected Bank borrowing thus arrived at is termed
‘Assessed Bank Finance’ (ABF). This method is applicable for borrowers who are engaged in

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manufacturing, services and trading activities and who require fund based working capital (WC)
finance of above Rs.5 crores or equivalent.

Cash Budget method is used for assessing working capital finance for seasonal industries like
sugar, tea and construction activity. This method is also used for sanction of ad-hoc WC limits. In
these cases, the required finance is quantified from the projected cash flows, and not from the
projected values of current assets and current liabilities.

Project Vivek
This is applicable for all eligible SME proposals up to Rs. 50 Cr in RBO. SME loan proposals eligible
under Project Vivek shall be processed in LOS or LLMS. CUE is a new Risk Rating model for
computing borrower rating on the basis of PD (Probability of Default). All credit decisions, limit
assessment and pricing are to be based on the CUE rating wherever applicable. The CUE Rating
Scale (CUE1 to CUE 15) has been mapped to existing CRA rating scale (SB1 to SB 15) one-to-
one.

Review/ Renewal of Advances

i) Renewal of working capital limit is carried out every year on the basis of audited financials. In case
working capital, limits are not renewed for valid reasons, approval from the sanctioning authority
needs to be sought for review (continuation of limits) for a maximum period of 180 days from the
due date. In case even after expiry of this period of 180 days a full-scale renewal is not completed,
approval needs to be sought from the sanctioning authority for review (continuation of limits) for a
further period of maximum 90 days. Even after the expiry of this period of 270 days from the due
date a full-scale renewal is not found feasible, the authority structure for approving continuation of
such proposal shall be the next higher authority for the proposal upto the sanctioning power of CLCC
and sanctioning authority for the proposal within the sanctioning power of RCCC and above.

Loan System for Delivery of Bank Credit

In respect of Domestic borrowers having aggregate fund based working capital limit of Rs. 150 Cr
and above from the Banking System, drawing shall be allowed first from Working Capital loan
component, upto a minimum threshold level (i.e., 60%). Drawings in excess of minimum Working
Capital loan component shall be in the form of cash Credit facility. Exemptions: a. Credit facilities
extended to State Government/ Union Territory agencies and Food Corporation of India for
procurement/ price support activities. b. Credit facilities extended to Central Counter parties. c.
Credit facilities extended by overseas branches of Indian Banks.

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Term Loans
Term Loans sanctioned and not availed within six months from the date of sanction need
revalidation. Normally, term loan may be financed in the ratio of 70:30 for debt and equity, though
ideally 67:33 is preferred.

Bank Guarantees
Bank can issue both financial and performance guarantees. BGs will generally be issued / renewed
for a period not exceeding 18 months at any one instance. For longer periods, authority structure
for according to administrative clearance is in place. No BG should normally have a maturity of more
than ten years. Bank may consider issuing BGs beyond maturity of 10 years only against 100%
cash margin or with prior approval of the competent authority specified in this regard. The claim
period of Bank Guarantees (fresh or extension) shall invariably be specified, minimum of one year
from the date of expiry of validity period.

Country Risk Classification

Countries have been placed in 11 risk categories as per the risk perception viz. Insignificant Risk,
Very Low Risk, Low Risk, Low Medium Risk, Low Medium Risk Under Caution, Medium Risk,
Medium Risk Under Caution, High Risk Under Caution, Very High Risk and Under Caution,
Restricted & Under Caution and Off Credit categories. In respect of countries placed under
“Caution”, branches are required to seek prior clearance from GMU-Kolkata for all primary
exposures on these countries.

Norms for Takeover of Advance Accounts

i) For exposures up to Rs. 5 cr. from Banking System: CUE-7 or better (SB-7 or better if not
processed though project Vivek).
ii) For exposures above Rs. 5 - 50 Cr Banking System: SB-7 or better.
iii) For exposures above Rs. 50 Cr: ECR for existing exposure should be BBB (not BBB-) or better.

Collateral Security: It must be ensured that the existing security with the Bank (from where the
account is being taken over) is maintained and no dilution in existing security coverage is permitted
for the amount taken over, by releasing the existing security charged to the existing banks. In case
Takeover is with enhancement/sanction of additional facilities, the collateral cover for additional
credit facilities sanctioned should be as per the norms prescribed by the Bank.

Audited Balance Sheet (ABS) should generally be not more than 12months. If ABS is older than
9 months and upto 18 months old, provisional financials not older than 6 months are to be obtained.
The takeover is not permitted if ABS is more than 18 months old.

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Ideally, only such accounts should be targeted for Takeover where the unit is in commercial
operations for at least two years (one year in case of Infrastructure projects) and no major green
field / brown field project is under implementation. The unit should have been earning profits for at
least 2 preceding years except Infrastructure projects for which it will be 1 year after COD as per
the last audited balance sheet and should not be incurring losses during the year as per provisional
financials

Stock and Receivables Audit is to be conducted prior to disbursement of any credit facilities above
Rs. 5.00 Cr or its equivalent except for units having ECR of “A-” and better.

Increase in exposure (working capital only) should not exceed 25% at the time of take over from
other Banks. However, this cap is not applicable for the companies externally rated “A- “and better
and above for the consecutive past two years. Security should be Created and Perfected within 90
days of disbursement. Takeover norms would apply even if borrower offered to liquidate existing
credit facilities before disbursement by our Bank. However, if there is a time gap of say 2 months
between liquidation of existing facilities and disbursement by our Bank, the Takeover norms would
not apply.

First review of all taken over accounts beyond Rs. 5 Crores is required to be put up, immediately
after 6 months from the date of sanction.

In respect of Agriculture segment, all agricultural Term loans and agricultural cash credits are eligible
for takeover, subject to the fulfillment of the following terms and conditions:

i) The minimum amount eligible for takeover would be as under: Nature of Facility Amount ACC Rs.1
Lac ATL– for Allied Activities Rs.10 Lacs. ATL for other than allied activities Rs.2 Lacs.

ii) The maximum amount eligible for takeover would be Rs.2 crores.

iii) Only Standard Assets and regular accounts are eligible for takeover. The account should have
been a standard account in the books of the other banks/Financial Institution (FI) during the
preceding 2 years.

iv) The term loans of incomplete nature are not eligible for takeover.

v) ATLs with a minimum 2-year repayment program left are only eligible.

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vi) Additional norms for takeover of Agriculture Loans of Rs.50 lacs and above: - a) The advances
to be taken over should be rated SB-7 or better (the unit should score at least 60% in the financial
parameters). b) The unit should have earned net profits post tax in each of the immediately
preceding 2 years

External Benchmark based Lending Rate (EBLR):

To facilitate transmission of Monetary Policy decisions, Bank has decided to use External
Benchmark for pricing all its new floating rate Personal or Retail loans and floating rate loans to
MSMEs w.e.f. 01.10.2019. External Benchmark Rate has been linked with RBI’s Repo Rate. Spread
is decided by the Bank. However, Credit Risk Premium may undergo change only when borrower’s
Credit Rating undergoes a substantial change, as agreed upon in the loan product. The interest rate
under external benchmark shall be reset at least once in three months.

Penal Provision in respect of Breach of Mandatory (Financial) Covenants:

Applicable for Term Loans of above Rs 50 crs limit – Covenants (in relation to the undernoted
parameters) (i.e., DSCR, Int. Coverage, FACR, Debt/EBIDTA) are to be stipulated for all term loans
and these are required to be tested annually on the basis of Audited Balance Sheet (ABS). Penal
interest will be charged in case of breach of any two of the four parameters vis-à-vis values as
approved by the sanctioning authority in the sanction note.
Benchmark for annual
Benchmark for annual testing of
Parameters testing of financial
financial covenants
covenants
DSCR
i)Upto 10 % Nil
Interest Coverage Ratio To be mentioned as per
FACR sanction note.
ii) More than 10 % 50 bps p.a.
Debt/EBIDTA
Collateral Security
For MSE Sector (both Manufacturing and Services enterprises) no collateral security is to be
obtained for loans upto Rs. 10 lacs, and for loans above Rs. 10 lacs and up to Rs. 15 lacs the
sanctioning authority may consider waiving collateral security subject to compliance with certain
conditions. Bank has decided to cover all eligible SME advances upto Rs. 200 lacs (manufacturing
and services) and upto Rs. 100 lacs (retail trade) under CGTMSE scheme. The cost of guarantee
i.e., Annual Guarantee Fee (AGF) shall be borne by the borrower for all loans (CC &TL) sanctioned
on or after 01.07.2017

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CGTMSE has introduced “Hybrid Security” product, wherein collateral security can be obtained for
a part of the credit facility whereas remaining part of credit facility, upto a maximum of Rs. 200 lacs
(manufacturing and service) and upto Rs. 100 lacs (retail trade) can be covered under CGTMSE
scheme.

Advances to non-farm enterprises in Manufacturing, Trading and Services with credit limits upto Rs.
10 lacs are normally classified under Pradhan Mantri Mudra yojana (PMMY) and covered under
Credit Guarantee Fund for Micro Units (CGFMU).

In Agriculture segment, Collateral security is waived for loans upto Rs. 1,60,000/- (Rupees One Lac
sixty thousand only) though there are scheme specific ceilings in this regard.

There are instances where the collateral offered is an aggregation of charge on several properties
at various locations. In such cases, where the number of properties is in excess of 10 (ten), a
notional discount @ 5% is to be applied on the aggregate “Realizable Value” of the properties and
the discounted value should be considered while calculating the security coverage in the credit
proposal.
Unconditional Cancellability clause
It gives the Bank the right to cancel the sanctioned limit without reference to the borrower at any
time and needs to be accepted by borrowers. Effective from April 1, 2019, the undrawn portion of
cash credit/ overdraft limits sanctioned to the Borrowers having aggregate fund based working
capital limit of Rs. 150 Cr and above from the banking system, irrespective of whether
unconditionally cancellable or not, shall attract a credit conversion factor of 20%.
Early Review of Sanctions (ERS)
ERS is overseen by the Internal Audit Department and covers review of all loans. It has been
covered in two Variants: a. Early Review of Sanction (Small Loans- SL): It covers sanctions above
Rs. 1.00 Cr and upto Rs. 20.00 Cr. b. Early Review of Sanction (Large Loans- LL): It Covers
sanctions above Rs. 20.00 Cr
Credit Audit
Covers all Credit Auditable Accounts (CAAs) (including LC Bill Discounting limits whether it is on
stand-alone basis or sanctioned as part of the existing limits) with total credit exposure (FB+NFB
limits) above Rs. 20 Cr. However, take over advances (accounts with exposure of Rs. 10 Cr and
upto Rs. 20 Cr) are to be covered under Credit Audit for the first audit and will be subsequently
covered under RFIA. If accounts of sister concerns/ group/ associate concerns of a CAA are in the
books of the same auditee unit, they are also covered under the Credit Audit process, even if their
credit exposure is Rs. 20 Crores or less.

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Legal Audit
It is mandatory for all exposures of Rs 5 crores and above, to verify the title deeds and other loan
documents.

IBC framework
It is regulated by ‘the Insolvency and Bankruptcy Board of India (IBBI)’. It has constituted two
following Adjudicating Authorities to handle the cases:

i) National Company Law Tribunal (NCLT) – to deal with Corporate Persons (including LLP).

ii) Debt Recovery Tribunal (DRT) – to deal with Individuals and Partnership Firms. All appeals from
NCLT and DRT shall lie with NCLAT and DRAT respectively. However, the Supreme Court of India
shall have Appellate jurisdiction over NCLAT and DRAT.

PROJECT FINANCE AND STRUCTURING STRATEGIC BUSINESS UNIT

Considering the various complexities involved, threshold limits for appraisal of proposals of
Infrastructure & Non – Infrastructure projects and criteria for reference of projects to PF&S SBU are
set as under.

Sectors Project Cost Threshold limit

Infrastructure Above Rs 250 crs
Non-Infrastructure Above Rs 750 crs
Project Finance & Structuring Strategic Business Unit (PF&S SBU) normally monitors and controls
of sanctioned project loans up to 2 years after DCCO for infrastructure projects and 9 months after
DCCO for renewable projects like Wind and Solar projects. In case of non-infrastructure projects/
commercial projects, control of such accounts continues to vest with PF&S SBU for a period of six
months after DCCO or upto stabilization of the project, whichever is later.

Exit Policy for Standard Assets indicating Signs of Stress

Eligible Accounts: All Standard accounts (including SMA–0, SMA-1 and SMA-2) irrespective of
External rating.
Threshold Limit: The Policy shall be applicable to accounts with exposure of Rs.5 Crs and above
across all business verticals.

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Willful Defaulter
Cut-off Limits for Identification of willful defaulters- Rs.25 lacs and above

Penal Measures applicable to all willful defaulters

i) No additional credit facilities to be granted to the listed willful defaulters. In addition, such
companies (including their entrepreneurs / promoters) where banks / FIs have identified siphoning
/ diversion of funds, misrepresentation, falsification of accounts and fraudulent transactions is
debarred from the Bank finance for floating new ventures for a period of 5 years from the date of
removal of their name from the list of Willful defaulters.

ii) The legal process, wherever warranted, against the borrowers / guarantors and foreclosure of
recovery of dues shall be initiated expeditiously. The Bank shall initiate criminal proceedings against
willful defaulters, wherever necessary.

Credit facilities to units in the 'Willful defaulters' list

No fresh limit / enhancement may be sanctioned.
of CICs or Credit facilities to applicant companies
However, an authority not below CCCC/IBGCC
whose directors are in the ‘Willful Defaulters’ list
may approve renewal/ continuation of earlier
of CICs/SEBI banned list of Promoters.
sanctioned limits.
A Non-Cooperative Borrower
A Non-Cooperative Borrower is one who does not engage constructively with the Bank, defaulting
in timely repayment of dues while having ability to pay, thwarting Bank’s efforts for recovery of their
dues by not providing necessary information sought, denying access to assets financed/collateral
securities, obstructing sale of securities, etc. The cut off limit for classifying a borrower as non-
cooperative is aggregate fund- based and non-fund-based facilities Rs.5 crore or its equivalent from
the Bank.

No fresh limit / enhancement may be sanctioned.

However, an authority not below CCCC/IBGCC
may approve renewal/ continuation of earlier
sanctioned limits.
Credit facilities to units identified/ appearing in
CIC Report as Non-Cooperative Borrower.

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Issue of Look Out Circulars (LOC)

The recourse under LOC shall be taken in all cases of fraud where the amount involved is Rs.50
Crore & above with SBI and where the conditions stipulated hereunder are fulfilled:

a. Fraud alleged to have been committed / perpetrated against the Bank by the said borrower /
promoter/ whole-time directors / proprietor / partners / guarantors / whole-time director of corporate
guarantor has been prima facie established during the investigation conducted by the Bank.

b. Declared as fraud by the Fraud Identification Committee of the concerned Circle/ Vertical
(Circles/Business Groups); and

c. Complaint has been filed with CBI against the said borrower / promoter/ whole-time directors /
proprietor / partners / guarantors / promoter / whole-time director of corporate guarantor about the
commission of the cognizable offence (fraud) under IPC or other penal laws.

In respect of the cases which have been declared as fraud more than 5 years ago, as CBI would
have initiated investigation, such cases may be exempted from taking recourse under LOC. Further,
cases of fraud where compromise with the borrowers/guarantors for settlement has already been
sanctioned by the Bank and the settlement terms are being duly complied with by them as also
cases where borrowers/guarantors have already paid/settled the dues to the satisfaction of the Bank
may be exempted.

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Chairman Policy
Based on the macroeconomic parameters and the overall business scenario the guidelines for the
Whole Bank under various parameters have been set as
Sr.No. Parameters Guidelines for FY 22-23

1 Growth in Deposits 10.82%

2 CASA 12.08%
3 Growth in Whole Bank Advances 13.51%

Of which: -- PBBU-22.04% Agri – 11.00% --

--REHBU- 13.25% SME- 15.74% --
CAG—14.00% CCG –14.00%
4 Priority Sector Lending >40.00%

5 Other income to increase by 7.93%

6 Overhead Growth to be capped at 8.75%
7 Gross NPA Ratio below 3.94%
8 Slippage Ratio to be capped at 1.08%
9 AUCA recovery - Whole Bank (Rs. in Cr.) 8,300
Of which target for SARG (Rs. in Cr.) 6,300

10 NIM (Domestic) 3.35%

11 Cost to income Ratio to be below 51.62%

12 RoRWA (Whole Bank) (On PAT) 1.44%

13 ROA 0.79%
14 ROE 15.93%
The RoRWA to be achieved by the respective Business Units (BUs) as
RoRWA
(pre-tax, excluding one-time income and legacy provisions)
% NBG CAG CCG GMU IBG Whole Bank

Dec 21 1.73 5.07 2.10 3.78 1.00 1.87

FY23 2.22 3.85 4.00 2.61 0.17 2.43
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Strategies
Growth in Assets
Interest income constitutes the bread and butter for the banks and is derived from the growth in assets.
The growth has to come from all the segments whether it is retail personal, MSME, agriculture &
financial inclusion, corporates or international banking. With the economic activities showing an upward
trajectory, it is going to have a rub-off effect on all sectors of the economy. While retail will continue to
have our focus, it is the corporate segment which is expected to jump start the growth in the loan book.
With the US and UK markets showing a good traction, we expect a healthy growth in overseas business
too. A few strategies to enhance credit growth in the respective segments are as under: -

Retail Personal: Retail personal, comprising of home loans, vehicle loans, personal loans, pension
loans, gold loans and various other products, has provided us significant growth opportunities and we
need to sustain business in this segment.

Agriculture and Financial Inclusion:

• Financing to collectives viz. SHGs, FPOs and PACS to increase
• Strategy to capture the business of unbanked farmers esp. affluent ones
• Use of BC channel for sourcing and collection of KCCs
• Financial inclusion be fasttracked with digital inclusion
• NBFCs / Co-lending opportunities with Start-ups
• Collaboration with Agri-techs for sourcing, monitoring and collections.

MSME:
• Strategy to capture entire ecosystem
• Focussed cluster-based approach through partnerships with local trade bodies
• Leveraging BC / CSP channel to serve MSME customers
• Increasing E2E digital onboarding
• Focus on export credit
• Partnerships with Fintech companies to scale up channel finance

Corporates:
Sustainable lending opportunities
• Renewable energy
• Electric vehicles
• Green hydrogen
• Ethanol blending / compressed biogas
• City Gas Distribution

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Growth in liability Products

The ‘trust’ factor has ensured that our liability franchise remains strong, and we need to sustain the
same. However, share of low-cost CASA deposits has to be increased as these contribute significantly
to the Net Interest Margin (NIM). Within the CASA deposits, the share of Current Account (CA) deposits
needs to be substantially increased. As at the end of Q3FY22, the CASA percentage of our Bank was
45.74% with CA’s share being only 6.11% of the total domestic deposits. Therefore, there is an urgent
need for improving the share of CA in our CASA and to begin with, it should be targeted more than 7%
of domestic deposits in FY23.
• Focus to be given on maximisation of high value current accounts and onboarding of CMP clients to
capture cash inflows. Priority be given to provide all financial services under one roof with dedicated
Relationship Manager for HNI individuals / corporate customers
• Deployment of marketing executives and Relationship Managers to garner fresh CASA business
• CA journey through YONO Business to be reimagined for simplification of product journey
• Launch special marketing campaigns for opening CAs in major districts with high potential and low
market share
• While opening CAs should be our focus area, we should not lose sight of Savings Bank (SB) accounts
and Term Deposits. All these provide valuable resources to the Bank for their profitable deployment.

Increase in Other Income:

The Net Interest Income (NII) is a function of growth in assets and liabilities in the desired manner.
However, it is the Other Income (OI) comprising of Fee Income, Forex Income, Profit / Loss on Sale of
Investments, Dividend, Miscellaneous Fee Income including Recovery in W/O Accounts which needs
special attention. It goes without saying that higher fee income helps improve Bank’s profitability
without capital consumption. The Other Income has been projected to increase by 7.93% in FY23 and
following strategies across various items should be adopted to increase the same:
• Focus on increasing Non-Fund Based (NFB) income
• Increasing Cross-selling income and ensuring against mis-selling.
• Ensuring RAROC based pricing at the customer level
• Minimising concessions in processing fees and service charges
• Strengthening wealth proposition to generate additional fee income • Promote use of Debit Cards at
PoS and e-Com channels to generate higher interchange fees.

Increase in treasury Income

• Actively churning the equity portfolio backed by research
• Actively pursuing divestment of strategic investments
• Taking exposures on issuers of corporate bonds which presently do not have borrowing relationships
with us

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Resolution of NPAs / Recovery in Written Off Accounts

• Monitoring of pace of accretion of new NPAs vis-à-vis other public / private sector lenders
• Calibrated efforts with legal machinery for faster recovery
• Arranging listing and auction of eligible assets on eBkray and other e-auction platforms for better
visibility to the public at large and improving success rate
• Strengthening of process of resolution of stressed assets and adoption of new resolution strategies.

International Operations:
International banking operations play a vital role in establishing and maintaining connect with Indian
corporates having businesses abroad, bilateral trade spread across countries and the Indian diaspora
in various geographies. It is necessary to increase visibility in print / visual media to project SBI as a
global bank. The foreign office advances presently contribute nearly 15% of whole Bank advances
which need to be increased. Suitable strategies need to be followed, consistent with the related
geography’s regulatory regime, to enhance our business. On the liabilities side, efforts should be
mainly directed towards:
▪ Targeting multi-lateral agencies for long-term low-cost funds against specified end use of funds
▪ Leveraging YONO for increasing retail deposits
▪ Reducing cost of borrowings through new bilateral arrangements and pre-paying high-cost
borrowings wherever possible
▪ Developing IFSC branch to attract deposits

IT and Digital:
The emergence of digital banking has given rise to countless innovations and opportunities in banking.
The Bank has been investing in new-age offerings and technology-driven initiatives to keep pace with
the changing times. In the wake of digital disruptions, SBI has aligned its IT vision with the customers'
changing fundamental expectations and behaviours and planned a roadmap to have an increased
thrust on digital channels to fulfil continuous demand of new products to be released in the shortest
possible time.

Core System:
The architecture changes of the core systems viz. CBS & Loan systems are also underway. The new
CBS will be a server less channel, built on an OS independent technology & compatible with all the
latest browsers. The lighter & intuitive front end will improve the experience of the staff while the Bank
will be saving on some of the licensing costs. CBS Reports portal has also undergone a change with
provision of role-based facility to view, print & download as well as retrieve reports from Electronic
Document Management System (EDMS). Similarly, the process of Loan System rationalization has
already been started in the Bank. While the erstwhile LOS (PB) is being subsumed into RLMS, LLMS

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will be positioned as a single loan system for SME & Corporate loans by subsuming LOS (SME). We
will also have new revamped LOS for processing Agriculture Loans. The primary objective of these
rationalizations is to provide user friendly Single Loan Processing System to the operational staff.

AI and Analytics:
Bank has been continuously moving towards an improved analytical and technological strategy. To
accelerate the progress, the Bank has taken multiple initiatives to further enrich its Analytical footprint
in the market as below:
(i) Next Generation Infrastructure: Bank’s new infrastructure aims to fulfill the gaps of the previous set-
up, while being able to process and analyze Big Data. The new infra aims to improve utilization of
unstructured data (raw text like news, images, audio etc.) in its already pre-designed state-of-the-art
implementations and for audio / video / text Analytics.
(ii) Product and Tech Roadmap: Analytics in the Bank is looking forward to the utilization and adoption
of further advanced AI / ML techniques including Deep Learning, Real Time / Streaming Analytics,
Augmented and Auto ML solutions in the • Aspire for zero downtime • CBS, Meghdoot & YONO to have
world class architecture Chairman’s Policy Guidelines FY 2022-23 [22] next year.

New Digital Initiatives:

(i) Contact Centre - An analytics-driven contact centre is being set up to understand, predict and resolve
customer queries, integrate it with social media alongwith event triggers and sentiment analysis. It will
provide real-time contextual offers to customers and improve process efficiency through automated
business intelligence reports and dashboards to understand business performance and key gaps.
(ii) AI / ML Based Generation of Alerts and Reduction in False Positives – Bank is moving from rule
based alert generation to AI / ML based generation of alerts. The system will recognise various
transaction patterns for user profiles and build a comprehensive ML model over a period of time which
will categorize the alerts into various priority wise buckets to assist users in taking decisions.
(iii) Digitisation of documents – Need for integration of all the application is felt by various departments
and Electronic Document Management System (EDMS) will be used for digitisation of various
documents including Video KYC.
(iv) Cutting edge technology platform to our HNI Customers - Bank is also in the process of
implementing a new wealth management solution for HNI clients. The system's primary goal is to make
it very simple and easy for wealth customers to interact with their respective relationship managers.
We continue to orchestrate the digital ecosystem to serve core customer needs and leverage cross-
selling opportunities beyond traditional banking products.
(v) Bank is also working to implement the Financial Information Provider (FIP) and Financial Information
User (FIU) modules for integration with Account Aggregators. Account Aggregator is an important block
in the open credit Chairman’s Policy Guidelines FY 2022-23 [23] enablement network (OCEN).

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Cyber Security:
With increased reliance on IT systems across the Bank, the Bank has been working on increasing the
resiliency of the IT systems against cyber-attacks & security incidents. We need to do proactive Root
Cause Analysis (RCA) & dynamic remedial actions as well as establishing Resilient Cyber Security
Framework.

Human Resource:
“The two most important things in any company do not appear in its balance sheet: its reputation and
its people” ……….Henry Ford. Human Resources (HR) is a critical factor in the Bank for achieving the
growth targets, expansion needs and providing a competitive edge to the Bank. HR in SBI is unique in
as much as it is one of the few organisations in the country with such a large complement of staff
belonging to diverse regional and cultural groups. The Bank has been at the forefront of devising new
HR policies and processes aimed at allround development of its Human Resources. Our Bank has
always been following the dictum “employees are at the core of its strategies to achieve all present and
future organizational goals”. The Bank always strives to provide a positive work culture to its 2.40 lac
plus employees. The HR management in the Bank continuously aligns its strategies with the ever-
changing aspirations of the workforce to increase efficiency and promote participative work culture in
the organization.

Customer Experience:
Customer has the facility to communicate with the Bank through a multiplicity of channels such as
email, call centre, chatbot (“SIA”), social media platforms besides physical interaction at the branches.
Customer experience is the sum of services received by the customer across all these channels. We
have to ensure world class ‘omnichannel’ customer experience to meet customer expectations and
brand positioning. The kind of demography and geography we serve, going “Phygital” is the only option
i.e. having physical as well as digital presence.
• Phygital – the way forward
• Five button feedback system to be introduced in branches – end of day count at Zonal Offices – to
measure customer experience to drive customer centricity
• Zero tolerance for poor customer service / staff misbehaviour

Risk Management:
Risk management is an important function in the Bank to understand the full range of risks it faces.
The Risk Management system in the Bank is aligned with regulatory standards and global best
practices in line with the scale and complexity of its activities. The business strategy is framed keeping
in view the Bank’s Risk Appetite statements. I request everyone to be mindful of the various types of

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risks and take actions with due risk mitigations in place. Everyone is responsible for protecting the
Bank’s reputation through a sound risk culture.

Capital:
Capital is a scarce commodity and comes with a cost. As such, we need to efficiently utilise the
available capital. This can be ensured by:
- Booking capital light assets such as AAA / AA rated assets, home loans, etc.
- Obtaining Basel compliant collateral to lower RWAs
- Inputting correct data to minimise the errors leading to better capital management.

Compliance:
Compliance is an integral feature of a well-managed business, capable of creating value through
enhanced reputation, investor confidence and lower cost of capital. The regulatory landscape is
constantly evolving to keep pace with technological advancement. It is the responsibility of everyone
to comply with laws, directives, rules, regulations, prescribed practices and internal policies &
procedures. Felicitation of officials adhering to compliance and action against repeat offenders is the
need of the hour. Controllers need to interact frequently with branch officials on regulatory concerns in
order to broaden the compliance culture in branches. We need to be extra vigilant to comply with KYC
/ AML, cyber security related guidelines. Let us strive to grow in a compliant way.

1.
Note: The key highlights of Chairman Policy are elaborated above. However, readers are
advised to go through the entire contents of the Chairman Policy for better appreciation and
understanding of Bank Concerns.

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Union Budget

Category Highlights
1. i) Focus on growth and all-inclusive welfare
2. ii) Promoting technology enabled development, energy
transition and climate action
3. iii) Virtuous cycle starting from private investment, crowded
in by public capital investment
Goals Of Amritkaal 4. Four Priorities:
5. a) PM GatiShakti
6. b) Inclusive Development
7. c) Productivity Enhancement and Investment, Sunrise
Opportunities, Energy Transition and Climate Action
8. d) Financing of Investments
9. • Driven by seven engines: Roads, Railways, Airports, Ports,
Mass Transport, Waterways, and Logistics Infrastructure.
10. • National Master Plan aimed at world class modern
infrastructure and logistics synergy
11. • Formulation of Master Plan for expressways. Completing
25000 km national highways in 2022-23
12. • Unified Logistics Interface Platform allowing data exchange
among all mode operators
13. • Open-Source Mobility Stack for seamless travel of
passengers
14. • 4 Multimodal Logistics parks through PPP to be awarded
PM Gatishakti
in 2022-23
15. • Integration of Postal and Railways Network facilitating
parcel movement.
16. • One Station One Product
17. • Extending coverage under Kavach
18. • 400 new generation Vande Bharat Trains
19. • Multimodal connectivity between mass urban transport and
railway stations
20. • National Ropeways Development Plan as sustainable
alternative to conventional roads.
21. • Capacity building for infrastructure Projects

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22. • Promoting chemical free natural farming starting with

farmers’ lands close to river Ganga
23. • Promoting post harvest value addition, consumption and
branding of millet products
24. • Delivery of Digital and Hi-Tech services to farmers in PPP
mode.
25. • Use of Kisan Drones to aid farmers.
Agriculture & Food
26. • Launching fund with blended capital to finance agriculture
Processing
start ups
27. • Implementation of Ken Betwa Link Project benefitting 9.1
lakh hectare farmland, providing drinking water to 62 lakh
people and generating 130MW power.
28. • 5 more such projects under process of implementation.
29.
30. .
1. Universalization of Education System
2. •One class One TV channel programme to be expanded to
200 TV channels.
3. •A Digital University will be established with world class
Education quality universal education
4. •High quality e-content will be delivered through Digital
Teachers
5.
6.

1. •Digital Ecosystem for Skilling and Livelihood (DESH-Stack

e-portal) will be launched to promote online training
2. •Startups will be promoted to facilitate Drone Shakti for
Skill Development
Drone-As-A-Service
3.
4.
1. •National Digital Health Ecosystem will be rolled out
2. •National Tele Mental Health Programme will be launched
Health for quality counselling
3. •Integrated architecture: Mission Shakti, Mission Vatsalya,
Saksham Anganwadi, and Poshan 2.0 to be launched

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4. •Two lakh Anganwadis to be upgraded to Saksham

Anganwadis
5.
6.
7. •Har Ghar, Nal Se Jal: 3.8 crore households to be covered
in 2022-23
8. •PM Awas Yojana: 80 lakh houses to be completed in 2022-
23
9. •PM-DevINE: To fund infrastructure and social development
based on felt needs of the North-East
10. •Aspirational Blocks Programme: For development of
lagging blocks of aspirational districts
All Inclusive Welfare
11. •Vibrant Villages Programme: Targeting development of
Measures
villages on the Northern Border left out from the
development gains
12. •Digital Banking by Post Offices: 100% of post offices to
come on the core banking system
13. •Digital Payments: Scheduled Commercial Banks to set up
75 Digital Banking Units in 75 districts
14.
15.
1. •Integration of central and state level systems through IT
bridges
2. •Expanding scope of PARIVESH Portal
3. •Unique Land Parcel Identification Number for IT based
management of land records
4. •Establishing C-PACE to facilitate voluntary winding up of
companies
Productivity, 5. •End to end online e-Bill System and utilising surety bonds
Enhancement & in government procurement
Investment 6. •AVCG promotion task force
7. •Support to 5G under PLI scheme
8. •Opening of defence R&D for industry, startups and
academia
9. •Issuance of chip embedded ePassports
10. •Modernisation of building byelaws, implementing Town
Planning Schemes and Transit Oriented Development
11. •Establishing Centres of Excellence in urban planning

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12. •Providing a battery swapping policy as an alternative to

setting up charging stations in urban areas
13.
1. •Allowing taxpayers to file Updated Return within 2 years for
correcting errors
2. • Tax relief to persons with disability
3. • Reducing Alternate Minimum Tax Rate and Surcharge for
Cooperative
4. • Income from transfer of virtual assets to be taxed at 30%
5. • Better litigation management to avoid repetitive appeals
6. •Increasing tax deduction limit on employer’s contribution to
NPS account of state government employees
7. • Customs administration to be fully IT driven in SEZs
8. • Phasing out concessional rates in capital goods and project
imports gradually and apply a moderate tariff of 7.5%
TAX 9. • Review of customs exemptions and tariff simplification
10. • Customs duty rates are being calibrated to provide a
graded rate structure to facilitate domestic electronics
manufacturing
11. • Rationalisation of exemptions on implements and tools for
agri sector manufactured in India
12. • Extension of customs duty exemption to steel scrap
13. • Reduction of duty on certain inputs required for shrimp
aquaculture
14. • Unblended fuel shall attract additional differential excise
duty
15.
16.
1. Ministry of Communications
:1,05,406.82
2. Ministry of Chemicals and Fertilisers
:1,07,715.38
Ministry wise Fund
3. Ministry of Agriculture and Farmers' Welfare
Allocation :1,32,513.62
4. Ministry of Rural Development
:1,38,203.63
5. Ministry of Railways
:1,40,367.13

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6. Ministry of Home Affairs

:1,85,776.55
7. Ministry of Road Transport and Highways
:1,99,107.71
8. Ministry of Consumer Affairs, Food and Public Distribution
:2,17,684.46
9. Ministry of Defence
:5,25,166.15
10.
11. Rs. In Crores
12.
13.

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Priority Sector Guidelines

Categories Domestic Foreign banks Regional Rural Small Finance
commercial banks with less than Banks Banks
(excl. RRBs & SFBs) 20 branches
foreign banks with
20 branches and
above
Total 40 per cent of ANBC 40 per cent of 75 per cent of 75 per cent of ANBC or
Priority or CEOBE ANBC or ANBC or CEOBE CEOBE
Sector whicheveris higher CEOBEwhichever whichever is whichever is
is higher; However, higher
higher; out of lending to
which up to 32% Medium
can be in the Enterprises,
form of lending to Social
Exports and not Infrastructure
less than 8% can and
be to any other Renewable
priority sector Energy
shall be reckoned
for priority sector
achievement only
up to 15 per cent
ofANBC.

Agriculture 18 per cent of ANBC or Not applicable 18 per cent 18 per cent of ANBC or
CEOBE, whichever is ANBC CEOBE,
higher; out of which a target or CEOBE, whichever is higher; out
of 10percent is prescribed whichever is of which target of 10
for Small and Marginal higher; out of percent is prescribed for
Farmers which a target of SMFs
(SMFs) 10 percent is
prescribed for
SMFs

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Micro 7.5 per cent of ANBCor Not applicable 7.5 per cent of 7.5 per centof ANBC
Enterprises CEOBE, whicheveris higher ANBC or orCEOBE,
CEOBE, whichever is
whichever is higher
higher

Advances 12 percent# of ANBC or Not applicable 15 per cent of 12 percent#of ANBC

to Weaker CEOBE, whichever ANBC or orCEOBE,
Sections is higher CEOBE, whichever is
whichever is higher
higher

# Revised targets for Agriculture and SMFs will be implemented in a phased manner as given below: -
Financial Year Small and Marginal Farmers target* Weaker Sections target^
2020-21
8.00 10

2021-22
9.00 11

2022-23
9.50 11.50

2023-24
10.00 12.00

* Not applicable to UCBs

^ Weaker Sections target for RRBs will continue to be 15% of ANBC or CEOBE, whichever is higher.
From FY 2021-22 onwards, a higher weight (125%) would be assigned to the incremental priority sector
credit in the identified districts where the credit flow is comparatively lower (per capita PSL less than
₹6000), and a lower weight (90%) would be assigned for incremental priority sector credit in the
identified districts where the credit flow is comparatively higher (per capita PSL greater than ₹25,000).
This list will be valid for a period up to FY 2023-24 and will be reviewed thereafter
ANBC : Adjusted Net Bank Credit
CEOBE: Credit Equivalent of off balance sheet exposure

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Priority Sector includes the i) Agriculture

following categories (ii) Micro, Small and Medium Enterprises
(iii) Export Credit
iv) Education
(v) Housing
vi) Social Infrastructure
(vii) Renewable Energy
(viii)Others

Categories under Agriculture

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Farm credit i. Crop loans including loans for traditional/non-traditional plantations,

horticulture and allied activities.
ii. Medium and long-term loans for agriculture and allied activities
(e.g., purchase of agricultural implements and machinery and
developmental loans for allied activities).
iii. Loans for pre- and post-harvest activities viz. spraying, harvesting,
grading and transporting of their own farm produce.
iv. Loans to distressed farmers indebted to non-institutional lenders.
v. Loans under the Kisan Credit Card Scheme.
vi. Loans to small and marginal farmers for purchase of land for
agricultural purposes.
vii. Loans against pledge/hypothecation of agricultural produce
(including warehouse receipts) for a period not exceeding 12 months
subject to a limit up to ₹75 lakh against NWRs/eNWRs and up to ₹50
lakh against warehouse receipts other than NWRs/eNWRs.
viii. Loans to farmers for installation of stand-alone Solar Agriculture
Pumps and for solarization of grid connected Agriculture Pumps.
ix. Loans to farmers for installation of solar power plants on
barren/fallow land
Corporate farmers, Farmer Producer Organizations
(FPOs)/(FPC) Companies of Individual Farmers, Partnership
firms and Co-operatives of farmers engaged in Agriculture and
Allied Activities
(a) Loans for the following activities will be subject to an aggregate
limit of ₹2crore per borrowing entity:
(i) Crop loans to farmers which will include traditional/non-traditional
plantations and horticulture and loans for allied activities.
(ii) Medium and long-term loans for agriculture and allied activities
(e.g., purchase of agricultural implements and machinery and
developmental loans for allied activities).

(iii) Loans for pre- and post-harvest activities viz. spraying, harvesting,
grading and transporting of their own farm produce
(b) Loans up to ₹75 lakh against pledge/hypothecation of
agricultural produce (including warehouse receipts) for a period
not exceeding 12 months against NWRs/eNWRs and up to ₹50
lakh against warehouse receipts other than NWRs/eNWRs.

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c) Loans up to ₹5 crore per borrowing entity to FPOs/FPCs

undertaking farming with assured marketing of their produce at a
pre-determined price.
(d) UCBs are not permitted to lend to co-operatives of farmers.

Agriculture infrastructure Loans for agriculture infrastructure will be subject to an aggregate

sanctioned limit of ₹100 crore per borrower from the banking system
i) Loans for construction of storage facilities (warehouse, market
yards, godowns and silos) including cold storage units/cold storage
chains designed to store agriculture produce/products, irrespective of
their location.
ii) Soil conservation and watershed development.
iii) Plant tissue culture and Agri-biotechnology, seed production,
production of bio-pesticides, bio-fertilizer, and vermi composting.
iv) Loans for construction of oil extraction/ processing units for
production of bio-fuels, their storage and distribution infrastructure
along with loans to entrepreneurs for setting up Compressed Bio Gas
(CBG) plants..
Ancillary activities 1. ii. Loans up to ₹5 crore to co-operative societies of farmers for
purchase of the produce of members (Not applicable to UCBs)
2. Loans up to ₹50 crore to Start-ups, as per definition of Ministry
of Commerce and Industry, Govt. of India that are engaged in
agriculture and allied services.
3. Loans for Food and Agro-processing up to an aggregate
sanctioned limit of ₹100 crore per borrower from the banking
system

An indicative list of eligible activities ancillary activities is

1. Loans for setting up of Agri-clinics and Agri-business centres.
2. Loans to Custom Service Units managed by individuals,
institutions or organizations who maintain a fleet of tractors,
bulldozers, well-boring equipment, threshers, combines, etc.,
and undertake farm work for farmers on contract basis.
3. Bank loans to Primary Agricultural Credit Societies (PACS),
Farmers’ Service Societies (FSS) and Large-sized Adivasi
Multi-Purpose Societies (LAMPS) for on-lending to agriculture.

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4. Loans sanctioned by banks to MFIs for on-lending to

agriculture sector (not applicable to RRBs, UCBs, SFBs and
LABs)
1. Banks other than SFBs are allowed to extend credit to
registered NBFC-MFIs and other MFIs (Societies, trusts etc.)
which are members of RBI recognized SRO for the sector, for
on-lending to individuals and to members of SHGs / JLGs.
2. With effect from May 5, 2021, SFBs are allowed to extend fresh
credit to registered NBFC-MFIs and other MFIs (Societies,
trusts etc.) which are members of RBI recognized ‘Self-
Regulatory Organization’ of the sector, and which have a
‘gross loan portfolio’ of up to ₹500 crore as on 31 March 2021,
for the purpose of on-lending to individuals. Bank credit as
above will be permitted up to 10% of the bank’s total priority
sector portfolio as on 31 March 2021. The above dispensation
shall be valid up to March 31, 2022. However, loans thus
disbursed will continue to be classified under Priority Sector till
the date of repayment/maturity whichever is earlier.
Indicative list of Permissible Activities under Food Processing
Sector as shared by Ministry of Food Processing Industries
(MoFPI)
1. Cleaning, Air Cooling (Field Heat Removal), Sorting,
Grading/Sizing, Packaging, Warehousing, Distribution of Fruits
& Vegetables etc.
2. Transportation including in refrigerated van/Cold Chain
infrastructure system Packaging and storage including
techniques like Silo, Hermetic storage; pest management.
3. Storage at low temperature/Cold Storage/Modified/Controlled
Atmosphere packaging, Refrigeration/Chilling etc.
4. Primary and/or Minimal Processing of F&V: - Blanching
(Vegetables), Peeling, Cutting, Storage, Distribution at Low
temperature, vacuum packaging etc.
5. Sun Drying and Mechanical Drying: - Solar Drying, Hot air
drying, Dehydration, hybrid drying, fluidized bed drying,
refractive window drying, drum drying, radio frequency drying,
Lyophilisation (Freeze Drying), Vacuum Drying, Spray Drying,
De-hydro-freezing etc.

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6. Preservation through various methods; both traditional and

modern.
7. Frozen Products: Individually Quick Frozen (10F) of Fruit,
Vegetables, Meat, Fish, Sea Foods etc.
8. Milk and Milk products processing, including their
transportation, packaging and storage.
9. Canning of Fruit, Vegetables including Mushrooms, Meat,
Fish, crustaceans, molluscs, other Sea Foods etc.
10. Milling Grains, Legumes & Pulses, Preparation of their by-
products such as Bran Oil, Cattle Feed/Poultry feed etc.
11. Processing of F&V into different products such as juices,
concentrates, sauces, jam, jellies, marmalades, Chips, Flakes,
Powders etc.
12. Processing of Grains & Pulses, Fish, Meat, Poultry, Sea
Foods, Egg etc. into their different products including extruded,
popped, puffed and flaked products and their packaging and
storage including fumigation, Smoking etc.
13. Oil seed Extraction- Rendering, Pressing, Hydrogenation,
Refining with Extraction, Filling/packaging etc.
14. Spices, Seasoning and Condiments - Grinding, Crushing,
Milling, Sieving, Mixing, Blending, Roasting, Packaging,
Storage, Distribution.
15. Production of fermented Products and Alcoholic- Wines,
Vinegar, Milk products, Prebiotics, Probiotics etc.
16. Production of beverages - Juices, RTS, Nectar, Squash,
Cordial, Syrups/Sherbets, Soups, Carbonated Beverages etc.
17. Production of Cocoa, Coffee, Chicory and Tea Products;
including Cocoa Butter, Cocoa Powder, Chocolates, wafers
etc.
18. Production of Bakery and Confectionary Products - Biscuits,
Bread, Cakes, Cookies, Toffee etc.
19. Production of Jaggery, Sugar, Khandasari etc from Sugarcane,
Beet, Palm etc.
20. Production of apiary products (honey processing; both natural
and artificial honey).
21. Production of Starch and Starch Products - Sago, Tapioca,
Corn, Noodles, Macroni, Vermicelli etc,
22. Slaughtering of animals/ruminants/birds etc. and their
processing.

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23. Nuts Processing: coconut-based product processing such as

water, nuts etc.
24. Processing of other products such as Instant Mixes, Ready to
Eat (RTE) retort-based products, ready to cook and Beverages
etc.
25. Nutraceutical products/functional foods/fortified food/enriched
food preparation.
26. Production of Organic food products.
27. Processing of algal and fungal products (e.g., Spirulina,
Mushrooms etc), including packaging and enhancement of
shelf life.
28. Processing plantation crops, packaging, storage and
enhancement of shelf life.
29. Production of food grade packaging material such as
laminates, tetra packs, bottles, tin containers etc.

v. Bank loans to NBFCs for on-lending (not applicable to RRBs,

UCBs, SFBs and LABs)
Bank credit to registered NBFCs (other than MFIs) for on-lending will
be eligible for classification as priority sector under respective
categories subject to the following conditions:
1. Agriculture: On-lending by NBFCs for ‘Term lending’
component under Agriculture will be allowed up to ₹ 10 lakh
per borrower.
2. Micro & Small enterprises: On-lending by NBFC will be
allowed up to ₹ 20 lakh per borrower.
The above dispensation shall be valid upto March 2022. However,
loans disbursed under the on-lending model will continue to be
classified under Priority Sector till the date of repayment/maturity.
Outstanding deposits under RIDF and other eligible funds with
NABARD on account of priority sector shortfall
Small and Marginal Farmers i. Farmers with landholding of up to 1 hectare (Marginal Farmers).
(SMFs) ii. Farmers with a landholding of more than 1 hectare and up to 2
hectares (Small Farmers).
iii. Landless agricultural labourers, tenant farmers, oral lessees and
sharecroppers whose share of landholding is within the limits
prescribed for SMFs.

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iv. Loans to Self Help Groups (SHGs) or Joint Liability Groups (JLGs),
i.e., groups of individual SMFs directly engaged in Agriculture and
Allied Activities, provided banks maintain disaggregated data of such
loans.

v. Loans up to ₹2 lakh to individuals solely engaged in Allied activities

without any accompanying land holding criteria.
vi. Loans to FPOs/FPC of individual farmers and co-operatives of
farmers directly engaged in Agriculture and Allied Activities where the
landholding share of SMFs is not less than 75 per cent, subject to loan
limits prescribed.
MICRO SMALL AND MEDIUM INDUSTRIES
Limits for Investment The limits for investment in plant and machinery/equipment for
manufacturing /service enterprise, as notified by Ministry of Micro,
Small and Medium Enterprises as per recent amendment.
Investment in plant and Investment in equipment
machinery
Micro where the investment in plant and and turnover does not exceed five
machinery does not exceed one crore rupees
crore rupees
Small where the investment in plant and turnover does not exceed fifty
machinery or equipment does not crore rupees
exceed ten crore rupees
Medium where the investment in plant and And turnover does not exceed two
machinery or equipment hundred and fifty crore rupees.
does not exceed fifty crore rupees.
Credit to SME, eligible for (i) All bank loans to MSMEs, engaged in the manufacture or
classification under Priority production of goods under any industry or providing or rendering of
Sector. services as defined in terms of investment in equipment under
MSMED Act, 2006, shall qualify under priority sector without any
credit cap
(ii) Loans up to ₹50 crore to Start-ups, as per definition of
Ministry of Commerce and Industry, Govt. of India that confirm
to the definition of MSME
(ii) Loans to entities involved in assisting the decentralized sector in
the supply of inputs and marketing of output of artisans, village and
cottage industries.
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(iii) Loans to co-operatives of producers in the decentralized sector

viz. artisans, village and cottage industries
(iv) Loans sanctioned by banks to NBFC-MFIs and other MFIs
(Societies, trusts etc.) which are members of RBI recognized SRO for
the sector for on-lending to MSME sector

(v) Loans to registered NBFCs (other than MFIs) for on-lending to

Micro & Small Enterprises as per conditions specified.
(vi) Credit outstanding under General Credit Cards (including Artisan
Credit Card, LaghuUdyami Card, Swarojgar Credit Card and
Weaver’s Card etc.in existence and catering to the non-farm
entrepreneurial credit needs of individuals).
vii) Overdraft limit to Pradhan Mantri Jan-Dhan Yojana (PMJDY)
account holder has been raised to Rs 10,000/-, age limit of 18-60
years has been revised to 18-65 years and there will not be any
conditions attached for overdraft up to Rs 2,000/-. These overdrafts
will qualify as achievement of the target for lending to Micro
Enterprises.
(vi) Outstanding deposits with SIDBI and MUDRA Ltd. on account of
priority sector shortfall.
(vii) On-lending by NBFCs will be allowed up to Rs. 20 lakh per
borrower.
Incremental export credit over corresponding date of the preceding
Export Credit year, up to 2 per cent of ANBC or CEOBE whichever is higher, subject
to a sanctioned limit of up to ₹ 40 crore per borrower.
Education Loans to individuals for educational purposes, including vocational
courses, not exceeding ₹ 20 lakh will be considered as eligible for
priority sector classification. Loans currently classified as priority
sector will continue till maturity.
Housing (i) Loans to individuals up to Rs. 35 lakhs in metropolitan centers (with
population of ten lakh and above) and loans up to Rs. 25 lakhs in other
centers for purchase/construction of a dwelling unit per family
provided the overall cost of the dwelling unit in the metropolitan centre
and at other centers should not exceed Rs. 45 lakh and Rs. 30 lakhs
respectively. The housing loans to banks’ own employees will be
excluded.

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(ii) Loans up to ₹10 lakh in metropolitan centre sand up to ₹6 lakh in

other centres for repairs to damaged dwelling units conforming to the
overall cost of the dwelling unit as prescribed above
(iii) Loans to any governmental agency for construction of dwelling
units or for slum clearance and rehabilitation of slum dwellers subject
to dwelling units with carpet area of not more than 60 sq.m.
(iv) Bank loans for affordable housing projects using at least 50% of
FAR/FSIfor dwelling units with carpet area of not more than 60 sq.m.
(v) Bank loans to HFCs (approved by NHB for their refinance) for on-
lending, up to ₹20 lakh for individual borrowers, for
purchase/construction/reconstruction of individual dwelling units or for
slum clearance and rehabilitation of slum dwellers,
(vi) Outstanding deposits with NHB on account of priority sector
shortfall
Social infrastructure Bank loans up to a limit of ₹5 crore per borrower for setting up schools,
drinking water facilities and sanitation facilities including
construction/refurbishment of household toilets and water
improvements at household level, etc. and loans up to a limit of ₹10
crore per borrower for building healthcare facilities including
under ‘Ayushman Bharat’ in Tier II to Tier VI centres.
Renewable Energy Bank loans up to a limit of ₹30 crore to borrowers for purposes like
solar based power generators, biomass-based power generators,
windmills, micro-hydelplants and for non-conventional energy based
public utilities, viz., street lighting systems and remote village
electrification etc., will be eligible for Priority Sector classification. For
individual households, the loan limit will be ₹10 lakh per borrower.
Weaker Sections in Priority 1. Small and Marginal Farmers
sector 2. Artisans, village and cottage industries where individual credit limits
do not exceed ₹1 lakh
3. Beneficiaries under Government Sponsored Schemes such as
National Rural Livelihood Mission (NRLM), National Urban Livelihood
Mission (NULM) and Self Employment Scheme for Rehabilitation of
Manual Scavengers (SRMS)
4. Scheduled Castes and Scheduled Tribes
5. Beneficiaries of Differential Rate of Interest (DRI) scheme
6. Self Help Groups
7. Distressed farmers indebted to non-institutional lenders
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8. Distressed persons other than farmers, with loan amount not

exceeding Rs. 1 lakh per borrower to prepay their debt to non-
institutional lenders
9. Individual women beneficiaries up to Rs. 1 lakh per borrower
10. Persons with disabilities
11. Overdrafts upto Rs. 10,000/- under Pradhan Mantri Jan-
DhanYojana (PMJDY) accounts within age limit of 18-65 years.
Bank loans to MFIs for on- 1. Bank credit to MFIs extended for on-lending to individuals and
lending to members of SHGs / JLGs will be eligible for categorization
as priority sector advance under respective categories
provided not less than 85 percent of total assets of MFI are in
the nature of “qualifying assets”.
(b) A “qualifying asset” shall mean a loan disbursed by MFI, which
satisfies the following criteria:
(i) The loan is to be extended to a borrower whose household annual
income in rural areas does not exceed Rs. 125000/-- - while for non-
rural areas it should not exceed Rs. 2,00,000/--.
(ii) Loan does not exceed Rs. 75000/- in the first cycle and Rs.
125000/- in the subsequent cycles.
(iii) Total indebtedness of the borrower does not exceed Rs.
1,25,000/-.
(iv) Tenure of loan is not less than 24 months when loan amount
exceeds Rs.30,000/- with right to borrower of prepayment without
penalty.
(v) The loan is without collateral.
(vi) Loan is repayable by weekly, fortnightly or monthly installments at
the choice of the borrower.
(b) The banks should obtain from MFI, at the end of each quarter, a
Chartered Accountant’s Certificate stating, inter-alia, that the criteria
on (i) qualifying assets, (ii) the aggregate amount of loan, extended
for income generation activity, and (iii) pricing guidelines are followed
(c) Co-origination of loans by Banks and NBFCs for lending to priority
sector:
All scheduled commercial banks may engage with NBFC-ND-SIs to
co originate loans for the creation of priority sector assets. The
arrangement should entail joint contribution of credit at the facility

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level, by both lenders. It should also involve sharing of risks and

rewards between the bank and the NBFC for ensuring appropriate
alignment of respective business objectives, as per the mutually
decided agreement.

COVID19 measures for PSL 1. For TLTRO 2.0 (Targeted Long Term Repo Operation)
scheme, banks were allowed to exclude the face value of such
securities kept in the HTM category from computation of
adjusted net bank credit (ANBC) for the purpose of determining
priority sector targets/sub-targets. This exemption is only
applicable to the funds availed under TLTRO 2.0.
2. the face value of securities acquired under the SLF-MF
(Special Liquidity Facility for Mutual Funds) and kept in the
HTM category will not be reckoned for computation of adjusted
net bank credit (ANBC) for the purpose of determining priority
sector targets/sub-targets.
3. the regulatory benefits announced under the SLF-MF scheme
will be extended to all banks, irrespective of whether they avail
funding from the Reserve Bank or deploy their own resources
under the above-mentioned scheme and the same can be
reckoned for computation of adjusted net bank credit (ANBC)
for the purpose of determining priority sector targets/sub-
targets.
4. an on-tap liquidity window of ₹50,000 crore with tenors of up to
three years at the repo rate till March 31, 2022, has been
opened to boost provision of immediate liquidity for ramping up
COVID-related healthcare infrastructure and services in the
country. Banks are expected to create a COVID loan book
under the scheme. These loans will continue to be classified
under priority sector till repayment or maturity, whichever is
earlier. Banks may deliver these loans to borrowers directly or
through intermediary financial entities regulated by the RBI.
Banks desirous of deploying their own resources without
availing funds from the RBI under the scheme for lending to
the specified segments mentioned above will also be eligible
for the incentives stipulated as above.

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5. a separate liquidity window of ₹15,000 crore with tenors of up

to three years at the repo rate till March 31, 2022 has been
opened for certain contact-intensive sectors i.e., hotels and
restaurants; tourism - travel agents, tour operators and
adventure/heritage facilities; aviation ancillary services -
ground handling and supply chain; and other services that
include private bus operators, car repair services, rent-a-car
service providers, event/conference organizers, spa clinics,
and beauty parlors/saloons. Banks are expected to create a
separate COVID loan book under the scheme. Banks desirous
of deploying their own resources without availing funds from
the RBI under the scheme for lending to the specified
segments mentioned above will also be eligible for this
incentive.
TLTRO -
Non-achievement of Priority Scheduled Commercial Banks having any shortfall in lending to
Sector Lending targets priority sector shall be allocated amounts for contribution to the Rural
Infrastructure Development Fund (RIDF) established with NABARD
and other Funds with NABARD/NHB/SIDBI/MUDRA Ltd., as decided
by the Reserve Bank from time to time. From financial year 2016-17
onwards, the achievement will be arrived at the end of financial year
based on the average of priority sector target /sub-target achievement
as at the end of each quarter.
Other PSL Loans Loans not exceeding ₹1.00 lakh per borrower provided directly by
banks to individuals and individual members of SHG/JLG, provided
the individual borrower’s household annual income in rural areas does
not exceed ₹1.00lakh and for non-rural areas it does not exceed
₹1.60 lakh, and loans not exceeding ₹2.00 lakh provided directly by
banks to SHG/JLG for activities other than agriculture or MSME, viz.,
loans for meeting social needs, construction or repair of house,
construction of toilets or any viable common activity started by the
SHGs.
Loans to distressed persons [other than distressed farmers indebted
to non-institutional lenders] not exceeding ₹1.00 lakh per borrower to
prepay their debt to non-institutional lenders.
Loans sanctioned to State Sponsored Organizations for Scheduled
Castes/Scheduled Tribes for the specific purpose of purchase and

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supply of inputs and/or the marketing of the outputs of the

beneficiaries of these organizations.
Loans up to ₹50 crore to Start-ups, as per definition of Ministry
of Commerce and Industry, Govt. of India that are engaged in
activities other than Agriculture or MSME

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Banking Laws and Acts

Banking Regulations Act 1949
The Banking Regulation Act was passed as the Banking Companies Act 1949 and came into force
w.e.f 16.3.49. Subsequently it was changed to Banking Regulations Act 1949 wef 01.03.66. The
Banking Regulation Act 1949 is legislation in India that regulates all banking firms in India. Initially, the
law was applicable only to banking companies. But 1965 it was amended to make it applicable to
cooperative banks and to introduce other changes. There is total 56 Sections in the Banking
Regulation Act, 1949.

Applicability of Banking Nationalized Banks • Non-Nationalized Banks • Cooperative Bank

Regulation Act
Section 5(b) Defines banking as, 'accepting, for the purpose of lending or investment, of
deposits of money from the public, repayable on demand or otherwise, and
withdrawable, by cheque, draft, order or otherwise.
Section 7 No company other than a banking company shall use words “bank”, “banker”,
“banking” or “banking company as part of its name under this section.

Section 10BB Gives power to Reserve Bank to appoint chairman of the Board of directors
appointed on a whole-time basis or a managing director of a banking
company.
Section 11 Requirement as to minimum paid-up capital and reserves.
Section 12. Regulation of paid-up capital, subscribed capital and authorized capital and
voting rights of shareholders.
Section 15 Restrictions as to payment of dividend
Section 17 Reserve Fund
Section 18. Cash reserve
Section 19(2) The Bank shall not hold shares in any company, whether as pledgee,
mortgagee or absolute owner, of an amount exceeding thirty per cent of the
paid-up share capital of that company or thirty per cent of its own paid-up
share capital and reserves, whichever is less.
Section 19(3) Bank shall not hold shares, whether as pledgee, mortgagee or absolute
owner, in any company in the management of which any Managing Director
or Manager of Bank is in any manner concerned or interested.
Section 20 Restrictions on loans and advances
Section 20(1) The Bank cannot grant any loans and advances on the security of its own
shares.
Section 21 Power of Reserve Bank to control advances by banking companies
Section 21A Rates of interest charged by banking companies not to be subject to scrutiny
by courts.
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Section 22 licensing of banking companies

Section 23. Prohibits banks from opening a new place of business (branches) in India or
abroad, change of premises otherwise than within the same city, change
otherwise than within the town or village, without prior approval of RBI.
Section 24 Statutory Liquidity Ratio
Section 26 Every banking company to submit an annual return to RBI in respect of all
accounts in India which have not been operated upon for 10 years.
Section 35 A RBI can carry out inspection of any Bank, also issue directives to Bank(s) in
the interest of depositors / banking policy
Section 36AA Power of Reserve Bank to remove managerial and other persons from office.
Section 36AB Power of Reserve Bank to appoint additional directors.
Section 36AE Power of Central Government to acquire undertakings of banking companies
in certain cases
Section 36AF Power of the Central Government to make scheme
Section 39 Reserve Bank to be official liquidator
Section 47 A Gives power to Reserve Bank to impose penalty
Section 49 Special provisions for private banking companies
Section 52 Gives power to Central Government to make rules
Section 56. Act to apply to co-operative societies subject to modifications
Section 45 ZA Nomination for deposits
Section45 ZB Notice of claims of other persons regarding deposits not receivable
Section45 ZC Nomination for articles kept in safe custody
Section45 ZD Notice of claims of other persons regarding articles not receivable
Section45 ZE Nomination for Release of contents of safety lockers
Section45 ZF Notice of claims of other persons regarding safety lockers not receivable

The Reserve Bank of India, Act 1934

The Reserve Bank of India was established on 1 April 1935 to respond to economic troubles after
the First World War under the Reserve Bank of India Act of 1934. Though privately owned initially, it
was nationalised in 1949 and since then fully owned by the Government of India. The bank was set up
based on the recommendations of the 1926 Royal Commission on Indian Currency and Finance, also
known as the Hilton–Young Commission.[ The Central Office of the RBI was established in Calcutta
(now Kolkata) but was moved to Bombay (now Mumbai) in 1937. The Bank is headed by the governor,
currently Shaktikanta Das. There are four deputy governors T Rabi Sankar, Mahesh Kumar Jain, M.
Rajeshwar Rao and Michael Patra.

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Section 2(e) A schedule bank means a bank whose name is included in the 2nd schedule of
RBI Act 1934. The essential condition of capital is that such banks have paid
capital and reserves of not less than Rs.5 lac & further that RBI is satisfied that
the affairs will be conducted by the bank in a manner that will not jeopardize the
interest of the depositors.
Section 3: Establishment and incorporation of Reserve Bank
Section 4 Capital of the Bank. The capital of the Bank shall be five crores of rupees.
Section 8: The composition of central board of Reserve Bank of India

Section 17 Defines various types of business which RBI may transact which include
acceptance of deposit without interest from Central/State Govt, any other person
or institution, sale/purchase of foreign exchange, securities, rediscounting of
bills/PN, grant loans etc.
Section 20 Obligation of the Bank to transact Government business.

Sec 21 RBI has the right to transact Govt. business in India i.e., remittance, exchange,
keeping deposit free of interest etc.
Section 21A Bank to transact Government business of States on agreement.
Sec 22 RBI has the sole right to issue bank notes.
Sec 23 Bank notes will be issued by issue deptt. against security consisting of gold coins,
bullion, foreign securities & other approved securities.
Sec 24 RBI issues all currency notes of denomination 2, 5, 10, 20, 50, 100, 500, 2000,
5000, 10000. It has power to discontinue, or non-issue of currency note of any
denomination. The notes of 2 & 5 have already been discontinued.
Section 26 (1): Defines legal tender of notes
Section 26(2): Withdrawal of legal tender of notes
Sec-28 RBI can frame rules for refunding value of mutilated, soiled or imperfect notes as
a matter of grace.
Sec-31 Only the RBI or the central government can issue and accept promissory notes/
BOE that are payable to bearer on demand. However, cheque, that are payable
on demand, can be issued payable to bearer by anyone.
Sec 42(1) Define Cash Reserve Ratio. Every bank is required to maintain with RBI an
average daily balance equal to a percentage of the net demand & time liabilities
as stipulated by RBI from time to time. This is known as CRR. There is no
minimum or maximum limit for CRR. Further RBI does not pay interest on balance
held for CRR purpose. Presently CRR is 4%.

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Collecting & RBI is empowered to collect information related to borrower & suit filed accounts.
Furnishing of Borrowers enjoying secured credit limit of Rs.10 lac & above & unsecured limit of
Credit Information Rs.5 lac & above- as on last Friday of April. Doubtful, lost & suit filled a/c of o/s
balance of Rs.100 lac & above- half yearly, March & September. Basic Statistical
Return: BSR-1 for borrower a/c of above Rs.2 lac & BSR-2 containing information
about deposit with break up into current, saving & time deposits.
Section 45 Empowering SBI/Nationalized Banks to conduct Government Business as an
AGENT of RBI
Section 45(U) Defines repo, reverse repo, derivative, money market instruments and securities.

Sec 45-H-T Provision relating to NBFC No NBFC shall commence business or carry-on
business without obtaining a certificate of registration & having net owned fund
of Rs.25 lac
Sec 49-Declaration RBI shall declare bank rate from time to time which is the rate at which it buys or
of Bank rate rediscount bills of exchange or other commercial paper eligible for purchase
under this act.

Section 58 Note Refund Rules

The Payment and Settlement Act, 2007
The PSS Act, 2007 received the assent of the President on 20th December 2007 and came into force
with effect from 12th August 2008.
Section 25 Dishonour of Electronic Funds Transfer for insufficiency, etc., of funds in the
account punished with imprisonment for a term which may be extended to two
years, or with fine which may extend to twice the amount of the electronic funds
transfer, or with both. the beneficiary makes a demand for the payment of the
said amount of money by giving a notice in writing to the person initiating the
electronic funds transfer within thirty days of the receipt of information by him
from the bank concerned regarding the dishonour of the electronic funds
transfer; the person initiating the electronic funds transfer fails to make the
payment of the said money to the beneficiary within fifteen days of the receipt
of the said notice The provisions of Chapter XVII of the Negotiable Instruments
Act, 1881 (26 of 1881) shall apply to the dishonour of electronic funds transfer
to the extent the circumstances admit.

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Indian Partnership Act, 1932

Section 4 Defines Partnership as “the relation between persons who have agreed to
share the profits of a business carried by all or any of them acting for all. (The
word profits imply LOSSES also) • The minimum number is 2 and the
maximum number is 50 wef 01042014, as per Companies Act 2013).
Registration of the firm is not Mandatory
Section 25 Liability Unlimited Jointly and Severally. Every partner is liable, jointly with all
other partners and also severally, for all act of the firm done while he/she is a
partner.
Section 30 MINOR admitted for benefits only
Section 42 Death, Insolvency of a partner and on expiry of fixed term etc. dissolve the
Partnership.
Sec 58 Registration of partnership farm is optional
Sec 69 An unregistered firm cannot sue its debtors, but the creditors of the
unregistered firm can sue the firm
Effects of Non- A partner cannot sue the firm or any partners to enforce a right arising from a
registration contract or a right arising from the Partnership Act • An unregistered firm
cannot sue a third party to enforce a right arising from a contract.
A minor cannot be a partner in a firm, but with the consent of all the partners
Sec 30 for the time being he/she may be admitted to the benefits of partnership by an
agreement executed through his/her guardian with the other partners.

Minor as a partner Minor can be admitted ONLY FOR THE BENEFITS (i.e., for profits only and
for benefits not for losses). Minors have no contractual capacity. He cannot bind other
partners or the firm but can be partners for sharing profits only. Consent of all
the existing partners necessary to admit minor as such a partner. However, on
attaining majority, he may choose to continue his partnership or quit by giving
a proper public notice

A Limited Liability Partnership (LLP)

It is a partnership in which some or all partners (depending on the jurisdiction) have limited liability. It
therefore exhibits elements of partnerships and corporations. Minimum 2 partners required. No
maximum limit. LP can sue and be sued in its own name. Individual partners cannot be sued for the
acts of the LLP. Limited Liability Partnership Act 2008 came into effect from 31st March 2009 and
extends to the whole of India. It will have perpetual succession. The Registrar of Companies (Roc)
shall register and control LLPs also. In India, for all purposes of taxation, an LLP is treated like any
other partnership firm. LLPs have a smaller number of compliances as compared to companies
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The Companies Act, 2013

The Companies Act 2013 passed by the Parliament received the assent of the President of India on
29th August 2013. The Act consolidates and amends the law relating to companies. The Companies
Act 2013 was notified in the Official Gazette on 30th August 2013. The provisions of Companies Act
1956 are still in force
Public Limited Co. Members -7 to No Limit, Directors- 3- Max-15, Min. Paid up capital Rs
5 lac
Private Limited Co. Members- 2 to 200 Min. Directors- 2 Min, Max 15 Paid up capital Rs 1
lac
Eligibility age to become The eligibility criteria for the age limit have been revised to 21 years as
Managing Director or whole against the existing requirement of 25 years. Number of directorships
time Director held by an individual Section 165 provides that a person cannot have
directorships (including alternate directorships) in more than 20
(twenty)companies, including ten (ten) public companies. It provides a
transition period of one year from 1 April 2014 to comply with this
requirement Board of Directors and Disqualifications for appointment of
director.
No of Directors Every Listed Company /Public Company with paid up capital of Rs. 100
Crores or more / with turnover of Rs. 300 Crores or more shall have at
least one-Woman Director also requires that company should have at
least 1 (one) resident director. All existing directors must have Directors
Identification Number (DIN) allotted by central government.
Independent Director In case of listed companies, one third of the board of directors should
be independent directors
Loans to director The Company cannot advance any kind of loan / guarantee / security to
any director, Director of holding company, his / her partner/s, his/ her
relative/s, Firm in which he or his relative is partner, private limited in
which he is director or member or any bodies corporate whose 25% or
more of total voting power or Board of Directors is controlled by him.
Appointment of Statutory Every Listed company can appoint an individual auditor for 5 years and
Auditors a firm of auditors for 10 years. This period of 5 / 10 years commences
from the date of their appointment.
Corporate Social The company has to constitute a CSR committee of the Board and 2%
Responsibility (CSR) of the average net profits of the last three financial years are to be
mandatorily spent on CSR activities by an Indian company if any of the
following criteria is met: • Net worth of Rs.500 crores or • Turnover of
Rs. 1000 crores or more or • Net profit of Rs. 5 crores or more
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Financial Statements All companies (except one person Company, small company and
dormant company)are now mandatorily required to maintain the
following, which may not include the cash flow statement) – • A balance
sheet as at the end of the financial year • A profit and loss account / an
income and expenditure account for the financial year, as the case may
be • Cash flow statement for the financial year • A statement of changes
in equity (if applicable) • Any explanatory note annexed to, or forming
part of, any document referred to.
One Person Company (OPC) It's a Private Company having only one Member and at least One
Director. It was first recommended in India by an expert committee
(headed by Dr. J.J. Irani) in 2005. The one basic pre-requisite to
incorporate an OPC is that the only natural-born citizens of India,
including small businessmen, entrepreneurs, artisans, weavers or
traders among others can take advantage of the ‘One Person Company’
(OPC) concept outlined in the new Companies Act. The OPC shall have
minimum paid up capital of INR 1 Lac and shall have no compulsion to
hold AGM (Annual General meeting).
Small Company A company, other than a public company, paid-up share capital of which
does not exceed 2 crores or turnover of which as per its last profit and
loss account does not exceed twenty Crore rupees.
Bankers Book Evidence Act 1891
Bankers’ books include all books like ledgers, day books, cash books and all other records used in the
ordinary business of a bank. These can be maintained in any form such as manual records, computer
printouts, stored in a micro-film, magnetic tape or any other form of mechanical or electronic data. Such
record can be kept either on site or at any off-site location including a back-up or disaster recovery site.
If the records are maintained in written form, a copy of any entry along with a certificate certifying at
the foot of such copy clearly indicating that; (i) it is a true copy of such entry/entries; (ii) the extract is
taken from one of the ordinary books of the bank; (iii) such entry was made in the ordinary course of
business; (iv) such record is still in the custody of the bank; (v) if the copy was obtained by a mechanical
or other process a certificate is required for the authenticity of the information/data. (g) The certificate
mentioned above should bear date and should be signed by the principal accountant or manager of
the bank with his name and official designation/title. If the records are maintained in the electronic or
mechanical form (computer printouts, floppy, disc, tapes etc.,) a copy of print out and a certificate as
mentioned for the manual records: (a) By the principal accountant or the manager stating that it is a
printout of such entry or a copy of such printout (b) In addition to the above another certificate by a
person who is in charge of computer furnishing a brief description of the computer system and other
particulars like (i) the safety features adopted by the bank to protect the data integrity; (ii) prevention

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of unauthorized entry into the system, (iii) checks and balancing system of verification of authenticity
input and output,(iv) if the data is retrieved and transformed, details of control system, and (v) in case
of micro film and similar manner in which the data are stored, then the details of the arrangement for
the storage and custody of such storage systems and practices.. A certificate of any entry in a banker’s
book should in all legal proceedings be received prima facie evidence of the existence of such entry
and should be admissible as if original is produced. On production of certified copy, no further evidence
is required.
Indian Contract Act, 1872
Indian Contract Act had a wide scope and included from Section 1 to 75 the General Principles of
contract, Section 76-123 includes Sale of Goods Act, Sections 124 -147 deals with Contracts of
Indemnity and Guarantee, Section 148- 181 is about contracts of Bailment and Pledge, Section 182-
238 is of Agency, Section 239-266: Partnership Act
Agreement An "agreement" is a contract if 'it is made by the free consent of parties competent
to contract, for a lawful consideration and with a lawful object, and is not expressly
declared to be void' Therefore, law prohibits Minors, Persons of unsound mind,
Person who is otherwise disqualified like an alien enemy, insolvents, convicts etc.
from entering into any contract.
Section 10. What agreements are contracts (Valid Contracts)
Section 11. Who are competent to contract
Section 23 What considerations and objects are lawful, and what not
Section 52. Order of performance of reciprocal promises
Section 73 Compensation for loss or damage caused by breach of contract. Compensation
for failure to discharge obligation resembling those created by contract
Section 124 Contract of indemnity” defined
Section 126 Rights of indemnity-holder when sued. “Contract of guarantee”, “surety”,
“principal debtor” and “creditor
Section 128. Surety’s liability
Section 148. “Bailment”, “bailor” and “bailee” defined
Section 170. Bailee’s particular lien.
Section 171 General lien of bankers, factors, wharfingers, attorneys and policy-brokers, in
absence of a contract to contrary, retain, as a security for the general balance of
the account, and any goods which are to bailed to them unless there is an express
contract to that effect. Bailments of pledges
Section 172. “Pledge”, “Pawnor” and “Pawnee” defined
Section 182 Agent” and “principal” defined

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Section 230 Agent cannot personally enforce, nor be bound by, contracts on behalf of
principal. Presumption of contract to contrary
Lien Lien is the right of one person to retain possession of goods owned by another
until the possessor's claims against the owner have been satisfied. In the
Contract of Bailment Bailee has a right to exercise the lien over the goods bailed
to him.
There are two kinds of lien (i) Particular Lien, (ii) General Lien

(i) Particular Lien:

Section 170 of the Indian Contract Act, 1872 which confers on the Bailee, the
right of particular lien. A particular lien gives the right to retain possession only
of goods in respect of which the changes or dues have arisen.

(ii) General Lien:

Section 171 of the Indian Contract Act,1872 confer on Bailee the right of
General Lien. General Lien is one which gives the right to possession until the
whole balance of the amount is paid. The right of General lien can be claimed in
respect of any goods for any change due in respect of other goods.
Limitation Act 1963
The Limitation Act contains 32 Sections and 137 Articles. The articles have been divided into 10 parts.
The first part is relating to accounts, the second part is relating to contracts, the third part is relating to
declaration, the fourth part is relating to decrees and instrument, the fifth part is relating to immovable
property, the sixth part is relating to movable property, the seventh part is relating to torts, the eighth
part is relating to trusts and trust property, the ninth part is relating to miscellaneous matters and the
last part is relating to suits for which there is no prescribed period.
Limitation Period

Type of loan Limitation Date of commencement of limitation period

Period
TL. 3 years. Default in the payment of any of the instalments or
from the date of acknowledgement of debt.
Equitable Mortgage 12 Years From the date when the mortgage debt falls due

personal Liability of the 3 years. 3 years from the date of default of each instalment
mortgagor

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Guarantor 3 years. From the date of demand and refusal / breach on

the part of the guarantor to carry out the obligation
Cash Credit /OD 3 Years From the date of document/acknowledgement of
debt

Negotiable Instruments Act 1881

Negotiable Instrument Act 1881 came into force w.e.f. Mar 01, 1882. Latest amendment was carried
out in December 2002. The Act has total 147 sections which are applicable throughout India including
Jammu & Kashmir state. The word “negotiable instrument” means a document which is transferable
from one person to another.
Sec 13, NI means and include Promissory note (PN), Bill of exchange (BoE) and Cheque.
Types of a) As per NI Act - 1: Promissory note, 2: bill of exchange, 3: cheque and 4:
Negotiable Demand draft
Instruments (b) As per Transfer of property Act (Sec 137) - Documents of title to goods such
as Bill of Lading, Rail Receipt, GR issued by transport operators approved by
IBA, Warehouse receipt, Airway Bill Dock Warrant, Delivery Order etc. also called
Quasi Negotiable instrument.
(c) As per usage or practice - such as Certificate of Deposit, Commercial Paper,
Treasury Bills, Hundi, Govt. Promissory Notes.
Section 4 Promissory Note is in an unconditional undertaking or promise, in writing signed
by the maker (the debtor), to pay a certain sum of money to or to the order of a
certain person or to the bearer thereof. In PN there are 2 parties’ maker (debtor)
& payee (creditor). Currency/bank notes are not promissory notes as these are
excluded from the definition of promissory notes (Sec 31 of RBI Act 1934).

Section -6 Cheque is a demand bill of exchange drawn on a specified bank. if a cheque

bears, the words bearer / order both, it is payable to bearer. If does not bear such
words, it is payable to order. if an impossible date is written (say Feb 29 in case
of leap year, 31 Apr, 31 Jun, 31 Sep, Nov 31), the cheque would be paid on last
day of month (Nov 30). If date is not complete (say Jun 2010), it cannot be paid.

Sec 18 If amount in words and figure differs Such cheque can be paid for amount written
in words. Amount written in figures shall be ignored. If amount in words is written
and in figures not given, it is incomplete cheque and cannot be paid. A cheque
drawn in different handwritings or in different inks or different script would be paid
A forged cheque (where signatures of the drawer are forged) is not a mandate of
the drawer and in no circumstances, it can be paid. If paid bank would be liable.
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Section 8 Defines holder of the cheque. Holder is a person who is (a) entitled to possession
of the instrument (b) entitled to receive or recover the due amount thereon (c)
entitled to complete the Inchoate instrument (d) entitled to receive a duplicate
instrument. Actual possession and consideration are not compulsory for a holder.
Sec 9 Defines Holder in due course of the cheque. It is a person who is (a) entitled to
possession of the instrument (b) entitled to receive or recover the due amount
thereon (c) obtained the possession for consideration (d) obtained the
possession in good faith. Payee or endorsee of a cheque is a holder in due
course. But if the cheque is lost, he becomes only a holder. Similarly, the payee
of a gift cheque is only a holder and not a holder in due course, as there is no
consideration
Section 20, Inchoate instrument is incomplete instrument in which one or the other particulars
are not given (but it bears signatures of the drawer). It can be completed by the
Holder. Incomplete instruments are not treated as Negotiable instrument.
Negotiation It means transfer of an instrument from one person to another to make the
transferee the holder thereof.
Sec 47 Negotiation is completed by delivery only in case of bearer instruments.
Sec 48 Negotiation is completed by endorsement followed by delivery by the same
person (Sec 48) in case of order instrument
Sec 15, Endorsement means signing on the face or backside of an instrument (or on a
separate paper, called allonge) for the purpose of negotiation i.e., transfers of
cheque to next person. Person transferring the instrument is called endorser. He
can be drawer, payee or an existing endorsee. The person to whom it is
transferred is called an endorsee.
Section 26 Minor can endorse a cheque, but he is not liable.
Section 36 Every prior party to a negotiable Instrument is liable thereon to a holder in due
course until the Instrument is duly satisfied.
Section 123 GENERAL CROSSING: When two lines are put with or without words, it is
general crossing (Sec 123). Here lines are important, words are not important.
(Cheque having the words Mumbai within two lines, can be paid in Delhi or
another place also).

Section 124 When only name of the bank is written within the lines or without lines, it is special
crossing (Sec 124). In special crossing the words i.e., name of bank is important,
lines are not important.
Section 128 PROTECTION TO PAYING BANK: Paying bank gets protection on payment of
crossed cheques u/s 128 by ensuring that the payment is made in due course
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Section 131 PROTECTION AGAINST CONVERSION: U/s 131 for cheque and u/s 131A for
demand draft, banks get protection against conversion, when they collect
cheques subject to fulfilment of the conditions that: (a) cheques are collected for
customers (as agents) in properly introduced accounts, (b) cheques are crossed
(generally or specially) before presentation to the paying bank and (c) cheques
are collected in good faith and without negligence
Section 85 A 85-A: Protection to paying banker in case of Bank drafts, similar to a cheque u/s
85-.
Section 89 Bank gets protection u/s 89 where materially altered cheque is paid, if the
alteration is not visible even after careful examination of the cheque. (It is not
compulsory to see the cheque through ultraviolet lamp).
138- 147 DISHONOUR OF CHEQUE If a cheque is dishonoured, the drawer is liable for
legal action by holder, u/s 138-147 of NI Act (wef 01.04.89) where: 1. Cheque is
issued to discharge a liability (for gift cheque not liable). 2. Cheque presented
within validity period (max restricted to 6 months/ 3 months from 1st April 2012)
3. Dishonour is due to insufficiency of funds or even for stop payment or closure
of account. Due to different judgments of Supreme Court reasons like Refer to
drawer, A/c closed, exceeds arrangement, Payment stopped by drawer and
effects not clear are treated equal to insufficient balance.
The payee or holder in due course should give notice to drawer within 30 days
of return of, cheque with the reason 'insufficient balance' and demanding
payment within 15 days of his receiving information of dishonour. The drawer
can make payment within 15 days of the receipt of notice and only if he fails to
do so prosecution could take place. The complaint is to be made within one
month of the cause of action arising i.e, expiry of notice period. Summary
Proceedings: Fine upto Rs, 5000 or imprisonment upto 1 year or both. Regular
Proceedings: Punishment is fine upto double the amount of cheque or
imprisonment upto 2 years or both.
Material Alteration An alteration that changes the basic direction of the drawer and is not
authenticated by him, is called material alteration which include: 1. Change in
amount, name of payee or date 2. Mutilation of cheque 3. Cancellation of crossing
or converting special crossing into general crossing. 4. Converting order into
bearer
What is not Material 1. Completion of amount, name of payee or date by the holder. 2. Crossing of an
Alteration uncrossed cheque 3. Cancellation of bearer or writing of order
Payment in Due Banks get protection, if a payment is in due course. As per Sec 10, a payment
Course would be considered in due course if: (a) Payment is as per apparent tenor of
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instrument. (b) Payment is in good faith and without negligence (c) Payment is to
person in possession of instrument (d) Payment under circumstances which do
not afford a reasonable ground for believing that he is not entitled to receive
payment of the amount mentioned therein (e) Payment must be made in money
only.
Crossing Types GENERAL CROSSING: When two lines are put with or without words, it is
general crossing (Sec 123). Here lines are important, words are not important.
SPECIAL CROSSING: When only name of the bank is written within the lines or
without lines, it is special crossing (Sec 124). In special crossing the words i.e.,
name of bank is important, lines are not important.
Section- 143A 1.& Interim compensation: The Bill inserts a provision allowing a court trying an
Section- 148 he offence related to cheque bouncing, to direct the drawer (person who writes
Central Government the cheque) to pay interim compensation to the complainant. This interim
through The compensation may be paid under certain circumstances, including where the
Negotiable drawer pleads not guilty of the accusation. The interim compensation will not
Instrument exceed 20% of the cheque amount and will have to be paid by the drawer
(Amendment) Act, within 60 days of the trial court’s order to pay such compensation.
Deposit in case of appeal: The Bill inserts a provision specifying that if a
2018 has notified
drawer convicted in a cheque bouncing case files an appeal, the appellate
amendments to the
court may direct him to deposit a minimum of 20% of the fine or compensation
NI Act by
awarded by the trial court during conviction. This amount will be in addition to
incorporating several any interim compensation paid by the drawer during the earlier trial
new provisions proceedings.
2. Returning the interim compensation: In case the drawer is acquitted
(during trial or by the appellate court), the court will direct the complainant to
return the interim compensation (or deposit in case of an appeal case), along
with an interest. This amount will be repaid within 60 days of the court’s order.

Fraud Risk Management

Stage wise Time Frame for Reporting of Frauds
Action to be taken by Action Timeline
Branch / CPC When any suspected fraudulent activity Same day
comes to notice, report to Controller
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Take prima facie view whether the case is a Same day

Controller suspected fraud
Immediately order for investigation Same day
Completion of fraud angle investigation 7 days
Submit “suspected fraud” report to FMC, 3 days
LHO
FMC (Fraud Monitoring Cell), Place the case before GM (upto 5 lacs/FIC 7 days
LHO (Fraud Identification Committee) (above 5
lacs)
Once GM/FIC decides to declare the case 5 days
as fraud to send the signed FMR in PDF and
also in word format through e-mail to FMD,
CC

FMD (Fraud Monitoring Report fraud details to RBI through XBRL 5 days
Department), CC

The FMR (Fraud Monitoring Report) shall be submitted to RBI within a maximum period of three weeks
from the date of detection.
For submission of Flash Reports (applicable for fraud cases of Rs.5 crore and above)
Action to be taken by Action Timeline
FMC, LHO Submission of Flash Report 3 days
to FMD, Corporate Centre
FMD, CC Submission of Flash Report 7 days
to RBI
Filing of FIR
Amount involved in the fraud Agency with whom Remarks
complaint should be lodged
Above Rs.10,000/ but below State Police: To the local To be lodged by Branch concerned if
Rs.1.00 lac police station committed by staff
Rs.1.00 lac and above but To the State CID/Economic To be lodged by the Regional Manager
below Rs.3.00 crore Offences Wing of the State
concerned
Rs.3.00 crore and above and CBI To be lodged by the concerned Controllers
up to Rs.25.00 crore with Anti-Corruption Branch of CBI (where
staff involvement is prima facie evident)

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Economic Offences Wing of CBI (where

staff involvement is prima facie not evident)
More than Rs.25.00 crore and CBI To be lodged by the concerned Controllers
up to Rs.50.00 crore) with Banking Security and Fraud Cell
(BSFC) of CBI (irrespective of the
involvement of a public servant)
More than Rs.50.00 crore CBI To be lodged by the concerned Controllers
with the Joint Director (Policy) CBI HQ New
Delhi.
All NPA accounts exceeding Rs. 50 crs shall simultaneously be examined from the angle of possible
fraud. For frauds exceeding Rs. 50 crs, CVO of the Bank should be Nodal Officer for filing complaint
with CBI. In the event of frauds exceeding Rs 50 crores, at the time of lodging complaint with CBI,
Operating Units will also need to lodge complaint with Enforcement Directorate (ED)/Department of
Revenue Intelligence (DRI) as the case may be.

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Government Business
Simply stating the transactions taking place at the branches of agency banks are consolidated at their
head offices or “link offices” and reported to the designated offices of Reserve Bank of India daily for
settlement by booking in the Ministries/Departments accounts and ultimate adjustment every month
end in the government account at Central Accounts Section (CAS), Nagpur which maintains the
accounts of the individual Ministries / Departments.

Government Payment: The Bank maintains mirror accounts of various ministries / government
departments. In most cases the payment account is separate from receipt account. The Bank makes
the payment through mirror accounts and then claims reimbursement from RBI in T+1 day. During this
period the Bank is out of funds. RBI pays commission @ 6.5 paise per Rs. 100/- (Rs. 6500/- per Rs.
One Crore). Government payments are affected by means of cheques, Treasury Bills and electronic
payment.
1.
Government Bills: A Government Bill may be drawn in respect of: Salaries Vendors supplying goods
to the Govt. departments Pension Grants in aid, contributions etc. • Government Bills are not
negotiable instruments • Government bills are drawn by drawing officer and thereafter passed by
Treasury Officer for payment at the Bank. After that, the Government Bill is called as Pay order. Validity
of a Pay order is upto 10 days or till the end of the month, whichever is earlier. • After expiry of the
validity period, it can be revalidated by Treasury Officer. Revalidation extends its validity for another
10 days.
2.
Government Cheques: Government cheques are issued by all Central Govt. and State Government
departments. •Government cheques are non-transferable and payable ‘to order'. •Government
cheques drawn on bank are treated as Negotiable Instruments. But cheques drawn on the Treasury
are treated as Government Bill and hence protection under Negotiable Instrument Act is not available.
•Validity of these cheques vary. •Cheque Truncation System (CTS) has been implemented in all
Central Government departments w.e.f. 1st February 2016. Under this system, the physical cheques
remain with the presenting bank. Only the image of the cheque travels to the issuing bank.
3.
Government Receipts: All taxes and non-tax revenues collected by the Bank on behalf of the Central
and State Government Departments are considered as government receipts. All credits to the
Government Account should be supported by Challans or GAR 7.

Physical Receipts: • Govt. Challans accompanied by cash/ clearing cheque/ transfer cheque etc.
tendered at the Branch are considered to be physical transactions. Bank collects the amount and
credits the respective government account. This amount is transferred to RBI within prescribed time

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period. The challans are subsequently sent to respective Ministries/ departments along with scrolls
while the funds are settled with RBI within the prescribed time frame of T + 1 or T+2 days (for branches
in North-eastern States). • Bank is paid a commission of Rs. 40/- per challan received by the Bank
(irrespective of the amount).

E-Receipts: • Taxes/ dues are also being collected through electronic modes like Internet Banking,
Debit Cards/ Credit Cards etc. These receipts need to be settled on T+1 basis. • Bank is paid a
commission of Rs. 9/- per receipt transaction done through any of these channels (irrespective of the
amount).

State Govt. Transaction Bank undertakes the following transactions: • Receipt of Registration Fees,
Sales Tax, motor vehicle tax etc. • Stamp Duty • Distribution of Govt. funds among various departments
• Payment on account of work done by State Govt. • Pension payment to State Govt. Pensioners.

FSLO (Funds Settlement Link Office) A separate department called FSLO has been set up, with a
separate branch clearing code, postal address etc. at RBI Centre/LHO/State Capitals. FSLO is
responsible for settlement of State Govt. transactions (including State Govt. pension), currency chest
transactions and Small Coin Depot transactions. It reports to DGM & CFO in the Circle.

State Govt. Link Branch/Office (SGLO): At the State Capital a branch is designated as State Govt.
Link Branch/office for the purpose of settlement and reconciliation of State Govt. transactions. It
consolidates the receipts/payments at the branches and settles the transactions on day-to-day basis
with Integrated Banking Department, Local office of RBI.

Reporting Branches: All branches conducting State Govt. business will report the transactions to the
above link Branch.

Penalty: W.e.f 01.04.2007, delayed remittances under State Govt. Transactions will attract same
penalty as Central Govt. Transactions. Settlement of Transactions with RBI shall be completed within
T+1 working days, where T is the day when money is available to the bank branch. Delayed Period
Interest: For transactions above Rs. 1 lac: @ Bank Rate +2% For transactions below Rs. 1 lac: For
delays up to 5 calendar days @ Bank Rate For delays above 5 calendar days @ Bank Rate +2%.

Advice to FSLO: The branch should advise the details of Govt. transactions to FSLO by the fastest
mode of communication like Fax, STD or Telegram/Telex when the net difference between total
receipts and payments is Rs. 1 lakh or more.

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Commission: The FSLO submits, as at the end of every quarter the claim for Commission to the Local
Office of RBI. The commission is distributed to the branches. Dealing branches/L.B. will share in the
ratio of 75:25. The Agency commission claims should be submitted along with distinctive set of
certificates duly signed by the branch officials and Chartered Accountants or Cost Accountants in
addition to the usual Certificate from ED / CGM (In-charge of Government business) to RBI within 60
days from the end of the quarter.

Transfer of Balance: Once a year as on 30th September. The balance in the State Govt. A/c should
be transferred to the FSLO. If 30th September is a holiday; the balance would be transferred on 29th
September. Of late, Corporate Centre GAD advises the date of transfer.

Central Govt. Transactions: The Bank established Government Accounts Department (GAD) in 1987
as an independent accounting unit (code no. 9595). The branches have been divided into (a) dealing
or receiving branches and (b) Focal Point branches (FPBs). Dealing / Receiving branches route their
transactions through the Focal Point / Link Branches. The Focal Point Branches/ Link Branches, on
receipt of daily memo from Dealing / Receiving Branches will include their own branch figures and
settle the funds with RBI expeditiously. The Focal Point/ Link Branches report the Government
Transaction to GAD, Mumbai at the end of each day to enable it to report to RBI, CAS, Nagpur for final
reconciliation of all government transactions. In view of the criticality of the Government transactions
and the necessity to modernize the accounting / settlement/ Reconciliation process of Central
Government Transactions, the Bank has launched GBSS in 2009.

New Challans
Major Head code to be Challan Form
Type of Tax 4. Status
checked on the challan No
Advance Tax, Self- Companies other than
0020 (Corporation Tax) 0021
Assessment Tax or companies (Individuals, ITNS 280
(Income Tax) 0032 (Wealth Tax)
Regular Tax HUF, Firms etc.)
All taxpayers
Tax Deducted at Companies other than 0020 (Companies) 0021 (Non-
ITNS 281
Source (TDS) Form companies (Individuals, companies)
HUF, Firms etc.)
0023 (Hotel Receipts Tax) 0024
(Interest Tax) 0028
All other Direct Taxes All Taxpayers ITNS 282
(Expenditure/ Other Tax) 0031
(Estate Duty) 0033 (Gift Tax)

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CIN (Challan Identification Number) is a unique serial number consisting of a) BSR Code number
of the Bank Branch (7digits) b) Date of presentation of the challan (DD/MM/YY) c) Serial number of
the challan in the branch on that day (5 digits).
5.
TIN (Tax Information Network) The online data is sent to TIN (NSDL at Mumbai. The Bank's Link
Cell at Nagpur will get complete data electronically. Taxpayers will no longer need to attach a copy of
challan with their Income Tax Returns. Instead, they need to mention their CIN.

TAN Tax Account Number is a 10-character alpha numeric number allotted to a tax deducting
authority for deduction of tax at source. The structure of the TAN is as per the following format: 4(A) +
5(N)+1(A).

Types of Government Accounts: There are three types of Government accounts:

a) Cash Assignment or Letter of Credit A/c: Every Ministry has an Integrated Financial Adviser. He
makes budget allocation of the various departments under the Ministry. On the strength of this, the
Accounts Officers issue letters of credit (LOC) assigning the amount available to the Drawing and
Disbursing Officers (DDO). The Bank is advised directly, by the Pay & Accounts Officer of the allotment
under the letter of credit. The drawings should not be permitted in excess of the allotment under any
circumstances. Accounts opened on the strength of letter of credit assigning limit for drawing are called
Cash Assignment or Letter of Credit A/c.
6.
b) Drawing Account: The Government may authorize the Bank to permit drawings without limit.
Usually, the Accounts Officers of Pay & Accounts Office are authorized to operate Drawing A/cs. These
accounts are known as ‘Drawing Accounts

c) Personal Ledger Accounts: Some Govt. Officers are authorized to open A/C which is of the nature
of regular current account with the Bank to book receipt and drawings and drawings shall not exceed
the balance in the account. These accounts are called Personal Ledger Accounts.

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Govt. e-Marketplace (GeM) GeM Pool Account (GPA)

Product Code Description Nature of A/c 1011-2151 GeM Pool Account GPA-SB Saving Bank 5011-
2151 GeM Pool Account GPA-CA Current Account.
GPA is a special purpose account to be opened for procurement on Govt. eMarketplace (GeM), which
is the national procurement portal (https://gem.gov.in) offering end-to-end solution for procurement
needs of Central & State Government Departments, PSUs, Autonomous Institutions and Local Bodies.
The portal was launched on 9th August 2016.While procuring goods & services through GeM, the
NPAEs (Non-Public Financial Management System (PFMS) Agencies/Entitles) will credit 100% of the
projected value of the goods / services in their GPA and it will not be withdrawn for any other purpose
other than the one for which the amount is credited into GPA. On successful supply & acceptance of
Goods & Services, Bank will receive online instructions through GeM portal to make payment to
vendors / suppliers. The pre-funded amount in GPA will remain from the time of placing order and till
the time of making payment to supplier.

Benefits of GeM Portal:

Fast & efficient procurement.
Cost effective.
Supplier confident of payment hence competitive pricing.
Demand Aggregation possible
MIS available
Control over expenses Business

Benefits to the Bank from GeM:

CASA
Agency Commission
Credit facilities to sellers
Onboarding of New Autonomous Bodies and opportunities for Cross Selling & Up Selling
Relationship Enhancement
Low Cost
BG advising commission.
Can finance suppliers under SME (Assured payment)

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Pension Payment
Agency banks would be eligible to claim agency commission for pension transactions at the rate of ₹
75/- per transaction only when the entire work relating to disbursement of pension including pension
calculation is attended to by them. If the work relating to pension calculations, etc., is attended to by
the concerned Government Department / Treasury and the banks are required only to credit the
amount of pension to the pensioners' accounts maintained with them by a single debit to Government
Account, such transaction is to be categorized under ‘other than pension payment’ and would be
eligible for payment of agency commission @ 6.5 paise per ₹ 100/- turnover w.e.f. July 1, 2019.
The number of transactions eligible for payment of agency commission should not exceed 14 per
pensioner per year.
Government Small Savings Scheme

PPF Accounts

1. “Only one PPF account can be opened per person. Resident Indians,
18 years or older, can open a Public Provident Fund Account. There is
no upper age limit for opening this account.

2. Accounts can be opened for minors. However, the maximum limit of

Rs.1.5 lakhs per year applies to deposits made in the minor and the
Major’s/guardian’s account, collectively.

3. Grandparents cannot open an account in the names of their minor

grandchildren.
Eligibility
4. Non-resident Indians (NRIs) cannot open a PPF account.

5. HUFs cannot open a PPF account, effective 2005.

6. Foreigners cannot open a PPF account.

7. An individual may also open an account on behalf of each minor or a

person of unsound mind of whom he is the guardian. Provided that only
one account shall be opened in the name of a minor or a person of
unsound mind by any of the guardian.

1. Account shall be opened with a minimum of initial deposit of five

Investment Limits
hundred rupees. A deposit which shall not be less than five hundred

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rupees and not more than one lakh fifty thousand rupees in multiple of
fifty rupees may be made in an account in a year.

2. The subscriber should not deposit more than Rs.1,50,000 per annum
as the excess amount will neither earn any interest nor will be eligible
for rebate under Income Tax Act.

3. The amount can be deposited in lump sum, or it can be spread over

many instalments in a year.
Original duration is 15 years. Thereafter, on application by the subscriber, it
can be extended for 1 or more blocks of 5 years each, by making deposit and
Duration of the submission of Form 4 within a year of maturity.PPF accounts matured with
Scheme irregular subscription is not eligible for further extension for the block of five
years, and credits are not allowed but the account will continue to earn interest
till it gets closed.
The rate of Interest determined by Central Govt. on quarterly basis. At present
it is pegged at 7.10% per annum. Interest is paid on 31st March every year.
Rate of Interest Interest is calculated on the minimum balance between 5th day and end of the
month.

The scheme permits partial withdrawals from year 7 i.e., on completing 6

years. The amount that can be withdrawn is capped as the lower of

• 50% of the total balance at the end of the fourth year, counting back from the
year of withdrawal
Withdrawals
OR
• 50% of the total balance at the end of the year before the year of withdrawal.

Withdrawals can be made only once in a financial year.

From the third FY onward, loan can be availed. The loan can be availed up to
25% of the balance available at the end of second year immediately preceding
the year in which loan is applied.
Loans
The loan re-Payment tenure will be maximum 36 months or 3 Years from the
first day of the month following the month in which the loan is sanctioned.

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. After the principal amount of the loan is fully repaid, the account holder shall
pay interest thereon in not more than two monthly installments at the rate of
one per cent per annum of the principal for the period commencing from the
first day of the
Month following the month in which the loan is drawn up to the last day of the
month in which the last installment of the loan is repaid.

New Provision:
The interest on the amount of loan outstanding and any portion of interest
payable, but not paid, on any loan, the principal amount of which has already
been repaid within the period of thirty-six months, may, on becoming due, be
debited to the holder’s account.

Income Tax benefits are available under Sec 88 of IT Act. Interest income is
totally exempt from Income Tax. Amount outstanding to the credit is fully
Tax Benefits
exempted from Wealth Tax also

Nomination facility is available in the name of one or more persons. The shares
Nomination
of nominees may also be defined by the subscriber.
The account can be transferred to other branches/ other banks or Post Offices
Transfer of Account and vice versa upon request by the subscriber. The service is free of charges

An account holder shall be allowed premature closure of his account or the

account of a minor or person of unsound mind of whom is the guardian on an
application to the account’s office in Form-5, on any of the following grounds,
namely: -

i) Treatment of life-threatening disease of the account holder, his spouse or

dependent children or parents, on production of supporting documents and
Premature Payment medical reports confirming such disease from treating medical authority.

ii) Higher education of the account holder, or dependent children on production

of documents and fee bills in confirmation of admission in a recognised
institute of higher education in India or abroad.

iii) On change in residency status of the account holder on production of Copy

of Passport and visa or Income tax return.
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Premature closure shall be allowed only after the account has completed five
financial years, from the date of opening of account and one percent less
interest on the interest rates is payable on the deposits held in the account
from the date of maturity till the date of such premature closure.
The penalty amount of 1% less interest is to be credited to PPF penalty
account number 30007961395.
The requirement of payment of a fee of Rs.50/- for each year of default along
with arrear subscription of Rs.500/- for each year.
Premature Penalty If a PPF account has already completed 15 years and has subsequently been
extended is closed prematurely before the completion of the current 5-year
block period, the reduction in interest rate by 1 percentage point shall be
applicable from the date of commencement of the current 5-year block period
and not from the date of initial opening of the account.
Form 1 Account opening new form
Form 2 of Govt. Savings Promotion Rules, 2018 for Pay-in-Slip
FORM 2- partial withdrawal
FORM 3-account closure after maturity
New Forms.
FORM 2- required for loan
FORM 1- required for nomination
FORM 4- extension of PPF after maturity
FORM 5 for premature closure
Sukanya Samridhi Account

SSA may be opened by the natural / legal guardian in the name of a girl child
from the birth of the girl child till she attains the age of ten years and any girl
child who had attained the age of ten years. Legal guardian may open two
accounts in the name of two girl children. Provided that more than two
Eligibility accounts may be opened in a family if such children are born in the first or in
the second order of birth or in both, on submission of an affidavit by the
guardian supported with birth certificates of the twins/triplets regarding the
birth of such multiple girl children in the first two orders of birth in a family.

i) Sukanya Samriddhi Account will be opened only with minimum initial deposit
Operation guidelines of Rs.250/- (two hundred fifty rupees) and Maximum Rs.150000/-.

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(ii). If any deposit in excess of one lac fifty thousand rupees is deposited in the
account due to any accounting error, it will not be eligible for any interest and
may be withdrawn any time by the depositor.

(iii) Deposits may be made in an account till the completion of a period of fifteen
years from the date of opening of such account.

(iv) An account in which minimum amount has not been deposited shall be
considered as an account under default, which may be regularised on payment
of a penalty of fifty rupees per year along with such minimum specified amount
for the years or years of default.

(v) In case of an account under default, if not regularised within the time
specified (period of 15 years) then the whole deposit, including the deposits
made prior to the date of default, shall be eligible for interest at the rate
applicable to the Scheme till closure of the account.

(ii) The interest shall be calculated for the calendar month on the lowest
balance in the account between the close of the fifth day and the end of the
month.

Interest on Deposit (iii) Interest shall be compounded yearly.

(iv) Interest is permitted even after the completion of 15 years of the account
till the closure of account on maturity. Current ROI is 7.60%.

Withdrawal is permissible only after the girl child attains 18 years of age or has
passed tenth standard, whichever is earlier. On an application in Form-3,
Withdrawal withdrawal of up-to a maximum of fifty per cent of the amount in the account
at the end of the financial year preceding the year of application for withdrawal,
shall be allowed for the purpose of education of the account holder.
(i) The account may be transferred anywhere in India and from or to post
offices and from or to Banks and between post office and Bank, free of cost
on furnishing of proof of shifting of residence of either the guardian or the
Transfer of account
account holder and otherwise on payment of a fees of one hundred rupees to
the post office or the Bank to which the transfer is made.

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(ii) The process of transfer shall be affected electronically if the post office or
the Bank concerned has access to the facility of CBS.
1. Where the accounts office is satisfied that in case of extreme
compassionate grounds such as medical support in life-threatening diseases
of the account holder or death of the guardian that the operation or
continuation of the account is causing undue hardship to the account holder,
it may, after complete documentation establishing the grounds for such
closure, by order and for reasons to be recorded in writing, allow premature
closure of the account.

New Provisions:
a) Outstanding balance in the account with interest due as applicable to the
Scheme shall be paid to the account holder or guardian, as the case may be

b) Interest for the period between the date of death of the account holder and
date of closure of the account shall be paid at the rate applicable on Post Office
Savings Account for the balance held in the account.
Premature closure
Provided that no premature closure of the account shall be made before
completion of five years of opening of such account

2. If the account holder becomes a non-citizen or NRI after opening of account,

the account shall deemed to be closed prematurely from the date of change
of status & no interest shall be deemed to accrue to the account from such
date.

.
3. The premature closure of an account may also be permitted any time for
any other reason than provided above without seeking the permission of the
Ministry. In this case the whole deposit shall be eligible only for the interest
rate prescribed for the Post Office Saving Bank account.

The account shall mature on completion of 21 years from the date of opening
the Account. No interest shall be payable once the Account completes twenty-
Maturity
one Years from the date of its opening.

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The closure of the account may also be permitted before completion of twenty-
one years if the account holder on an application makes a request for such
closure for the reason of intended marriage of the account holder on furnishing
of a declaration duly signed on non-judicial stamp paper attested by the notary
supported with proof of age confirming that the applicant will not be less than
eighteen years of age on the date of marriage.

The account shall be operated by the guardian till the account holder attains
Operation of the
the age of eighteen years. The account shall be operated by the account
Account
holder herself after attaining age of eighteen years by submitting necessary
documents.

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Senior Citizens Saving Scheme 2004

1. An individual who has attained the age of 60 years and above on the
date of opening of an account.

2. An individual who has attained the age of 55 years or more but less
than 60 years and who has retired on superannuation or otherwise on
Eligible Age the date of opening an account.

3. An individual who has retired at any time before the commencement of

these rules and attained the age of 55 years or more on the date of
opening of an account.

4. The retired personnel of Defence Services (excluding Civilian Defence

Employees) shall be eligible to subscribe under the scheme on
attaining the age of fifty years.
5. NRI's & HUF are not eligible to open an account under these rules.
In case an investor has attained the age of 60 years and above, the source of
amount being invested is immaterial.

However, if the investor is 55 years or above but below 60 years and has
retired under a voluntary scheme or a special voluntary scheme or has retired
from the Defence services, only the retirement benefits can be invested in the
SCSS

Retirement benefits" for the purpose of SCSS Rules have been defined as
'any payment due to the depositor on account of retirement whether on
superannuation or otherwise and includes Provident Fund dues, retirement /
superannuation gratuity, commuted value of pension, cash equivalent of
leave, savings element of Group Savings linked Insurance scheme payable
Eligible Amount
by employer to the employee on retirement, retirement-cum-withdrawal
benefit under the Employees’ Family Pension Scheme and ex-gratia
payments under a voluntary retirement scheme. The individual who has
attained the age of fifty-five years or more but less than sixty years and who
has retired on superannuation or otherwise on the date of opening of an
account under this scheme can open SCSS account, subject to the condition
that the account is opened by such individual within a month of the date of
receipt of retirement benefits’’
As per the instructions from the Government, in view of the lock-down in the
entire country, the individuals
616 retired (within age bracket of 55-60 years) on
superannuation or otherwise and got retirement benefits in February 2020 or
March 2020 or April 2020 are eligible to open the account upto 30th June 2020

There shall be only one deposit in the account in multiple of one thousand
Deposits and
rupees not exceeding Rupees Fifteen lakhs. Withdrawal is permitted after one
`

The deposit under these rules may be made in cash, if the amount of deposit
is less than Rupees One lakh. By cheque or demand draft drawn in favour of
Mode of Deposit
the depositor and endorsed in favour of the deposit office.

The depositor may extend the account for a further period of three years after
the maturity period of five years. An application in Form B should be made
Renewal: within a period of one year after the date of maturity period. Extension of an
account shall be available only once.

In case a depositor does not close the account on maturity and also does not
extend the account, the account will be treated as matured and the depositor
will be entitled to close the account at any time subject to the condition that the
Non-Extension post maturity interest at the rate as applicable to the deposits under the Post
office Savings Accounts from time to time will be payable on such matured
deposits up to the end of the month preceding the month of the closure of the
account.
In case of death of the depositor before maturity the account shall be closed,
Death of the and deposit refunded on application in Form F along with interest to the
depositor nominee or legal heirs in case the nominee has also expired, or nomination
was not made as per rules.

The account holder may withdraw the deposit and close the account at any
time on an application, subject to following condition, namely:
-In case, the account is closed before one year after the date of opening of
account, interest paid on the deposit in the account shall be recovered from
the deposit and the balance shall be paid to the accountholder.
Premature closure of
Account In case the account is closed after the expiry of one year but before the expiry
of two years from the date of opening of the account, an amount equal to one
and half percent of the deposit shall be deducted, and the balance paid to the
depositor. In case the account is closed on or after the expiry of two years from
the date of opening of the account, an amount equal to one percent of the
deposit shall be deducted and balance paid to the depositor.

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 The deposit made under these rules shall bear interest @ 7.40 % p.a. from the
Interest date of deposit payable at the end of each calendar quarter e.g., 31st March / 30th
June / 30th September / 31st December. Compounding of interest not permissible.
The deposit made at the time of opening of account shall be paid by the concerned
deposit office after the expiry of five years from the date of opening of the
Maturity
account on production of the passbook accompanied by a written application
(withdrawal form) Form E.
1. Accounts can be held both in single and joint holding modes.
2. Joint holding is allowed only with spouse. The whole amount of
investment in an account under the scheme is attributed to the first
applicant / depositor only.
3. Both the spouses can open individual and / or joint accounts with each other
with the maximum deposits up to Rs.15 lakh each, provided both are
individually eligible to invest under relevant provisions of the Rules
governing the Scheme.
4. In case of a joint account, if the first holder / depositor expires before the
maturity of the account, the spouse may continue the account on the same
terms and conditions as specified under the SCSS Rules. However, if the
Other
second holder i.e., spouse has his / her own individual account, the
Features
aggregate of his/her individual account and the deposit amount in the joint
account of the deceased spouse should not be more than the prescribed
maximum limit.
5. In case the maximum limit is breached, then the remaining amount shall be
refunded, so that the aggregate of the individual account and deceased
spouse’s joint account is maintained at the maximum limit.
6. Both the spouses have opened separate accounts under the scheme and
either of the spouses dies during the currency of the account(s), the
account(s) standing in the name of the deceased depositor/spouse shall not
be continued and such account(s) shall be closed. The account can be
closed by making an application in Form ‘F’.

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619
 Customer Service and Grievance Redressal
Customer Grievances Redressal Policy 2019
Grievances relating to Branch transactions:
1. The complaint entered in the complaint book will be entered in CMS by the Branch and
complaint number will be conveyed to customer by SMS.

2.Branch to ensure that the complaint is redressed expeditiously within a maximum period of
three weeks.

1. Customer may lodge his complaint on other channels viz. Contact Centre toll free. numbers
18001234, 1800 4253800, 1800 11 22 11 or 080-26599990 (Toll Number) or through SMS
Unhappy channel by sending SMS ‘UNHAPPY’ to number 8008 20 20 20.

4. Customers can also send their complaints through email at contactcentre@sbi.co.in or lodge
their grievance online on the Bank’s web site (www.sbi.co.in or bank.sbi) under the link ‘Customer
Care’

5. The complainant can also get the status of his complaint directly from the Contact Centre by
calling on the numbers as given above or by sending SMS to 567676.

6. Customer may send an email to contactcentre@sbi.co.in / customercare@sbi.co.in, a complaint

will be lodged in the appropriate category and a ticket number will be sent for subsequent tracking
of the status of complaint by the complainant.

Escalation matrix for customer complaints

Lodging/Escalation /Auto Escalation of complaints Day of Days available
lodging / for redressal
Escalation (Within the
maximum three
weeks)
Branch 1 st Day 10 days

Local Head Office 11th Day 5 days

Corporate Centre 15th Day 6 days

7. The Customer can approach the Banking Ombudsman in case his grievance is not redressed
within 30 days of lodging the complaint. In case of complaints relating to digital transactions
customers can approach Ombudsman for Digital Transactions. The contact details of the Banking
Ombudsman of the respective Region shall be displayed at each Branch.

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 Grievances relating to Technology related transactions

1. Assistance for such alternate channels and digital banking products are available on Toll free
helpline number 1800-425- 3800, 1800-112- 211 or 080-26599990(Toll Number).

2. For notifying any unauthorized electronic banking transactions - customer can report on
1800111109 or 09449112211 (Debit Card). A separate link for reporting has also been provided in
bank’s website.

3. He may also notify unauthorized electronic banking transactions by forwarding transaction SMS
to 9223008333 or by forwarding transaction email to unauthorisedtransaction@sbi.co.in or through
Phone Banking (if registered) or contact their home branch during working hours.

4. Bank shall ensure that a complaint is resolved and customer liability, if any, is determined within
90 days.
Nodal Officer for handling customer grievances
The Principal Nodal Officer at SBI, Corporate Centre, Mumbai for customer grievances redressal
- General Manager (Customer Service), Customer Service Department.

The Nodal officer for grievance redressal at Local Head Offices - General Manager (Network) and
grievances will be handled by the Chief Manager / Assistant General Manager (Customer Service)
under his control.

Acknowledgement of Grievances and Redressal

The Branch, RBO, LHO or the Corporate Centre as the case may be, will acknowledge the
grievance within three (3) working days of receipt and initiate action to have the grievance resolved
within a maximum period of three weeks from the date of receipt.
Bank’s Central Board/Local Board
An analysis of customer grievances received, and review of grievance redressal mechanism -
placed before Customer Service Committee of the Board (CSCB) every Quarter. A similar review
shall also be done at the Bank’s 17 Local Head Offices.
Standing Committee on Customer Service
The Standing Committee on Customer Service shall be in each Circle and is headed by the Chief
General Manager. The other members of the Committee will be Senior Executives from the Circle
and Executives nominated by the CGM. The committee shall also have representation from
customers of the Bank at the Centre (not more than two, one preferably a senior citizen/pensioner).
The Committee will review feedback on customer service from Branches in the Circle,
implementation of commitments in the BCSBI’s Code of Bank’s Commitments to Customers / Code
of Bank’s Commitment to Micro & Small Enterprises and suggest measures to tone up customer
service and customer grievances redressal.

621
 Customer Service Committee and Customer Relations Programme
Customer Service Committee - Hold a meeting on 15th of every month (on previous working day
in case 15th is a holiday).

Customer Relations Programme - Organized once every quarter on 25th of Feb 25th May 25th
Aug and 25th Nov (on previous working day in case of a holiday).

Customers’ Day - Observed on 10th and 20thof every month (on following working day in case of a
holiday)
The Reserve Bank - Integrated Ombudsman Scheme, 2021

The Reserve Bank - Integrated Ombudsman Scheme, 2021 (the Scheme) was launched today
in virtual mode by Hon’ble Prime Minister Shri Narendra Modi.
2. The Scheme integrates the existing three Ombudsman schemes of RBI namely,
(i) the Banking Ombudsman Scheme, 2006;
(ii) the Ombudsman Scheme for Non-Banking Financial Companies, 2018; and
(iii) the Ombudsman Scheme for Digital Transactions, 2019.

The Scheme, framed by the Reserve Bank in exercise of the powers conferred on it under Section
35A of the Banking Regulation Act, 1949 (10 of 1949), Section 45L of the Reserve Bank of India
Act, 1934 (2 of 1934), and Section 18 of the Payment and Settlement Systems Act, 2007 (51 of
2007), will provide cost-free redress of customer complaints involving deficiency in services
rendered by entities regulated by RBI, if not resolved to the satisfaction of the customers or not
replied within a period of 30 days by the regulated entity.
3. In addition to integrating the three existing schemes, the Scheme also includes under its ambit
Non-Scheduled Primary Co-operative Banks with a deposit size of ₹50 crore and above. The
Scheme adopts ‘One Nation One Ombudsman’ approach by making the RBI Ombudsman
mechanism jurisdiction neutral.
4. Some of the salient features of the Scheme are:
i.It will no longer be necessary for a complainant to identify under which scheme he/she
should file complaint with the Ombudsman.
ii.The Scheme defines ‘deficiency in service’ as the ground for filing a complaint, with a
specified list of exclusions. Therefore, the complaints would no longer be rejected
simply on account of “not covered under the grounds listed in the scheme”.
iii.The Scheme has done away with the jurisdiction of each ombudsman office.
iv.A Centralised Receipt and Processing Centre has been set up at RBI, Chandigarh for
receipt and initial processing of physical and email complaints in any language.
v.The responsibility of representing the Regulated Entity and furnishing information in
respect of complaints filed by customers against the Regulated Entity would be that of
the Principal Nodal Officer in the rank of a General Manager in a Public Sector Bank or
equivalent.
vi.The Regulated Entity will not have the right to appeal in cases where an Award is issued
by the ombudsman against it for not furnishing satisfactory and timely
information/documents.
5. The Executive Director-in charge of Consumer Education and Protection Department of RBI
would be the Appellate Authority under the Scheme.
6. Complaints can continue to be filed online on https://cms.rbi.org.in. Complaints can also be
filed through the dedicated e-mail or sent in physical mode to the ‘Centralised Receipt and
Processing Centre’ set up at Reserve Bank of India, 4th Floor, Sector 17, Chandigarh - 160017
622
in the format. Additionally, a Contact Centre with a toll-free number – 14448 (9:30 am to 5:15 pm)
– is also being operationalised in Hindi, English and in eight regional languages to begin with and
will be expanded to cover other Indian languages in due course. The Contact Centre will provide
information/clarifications regarding the alternate grievance redress mechanism of RBI and to
guide complainants in filing of a complaint.
7. A copy of the Scheme is available on the RBI website and on the CMS portal
(https://cms.rbi.org.in). The Scheme will be effective from today.

CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management (CRM) is an approach to managing a company's interaction
with the current and potential customers and analysing data about customers' history with a
company. Besides lead management in retail, SME and Agri, it is also used Complaint
Management System and Deceased claim processing. You can login to SBI CRM using the URL:
https://crm.sbi.co.in Or you can also login from https://info.sbi--> CRM APPLICATION. It’s based
on SSO (Single Sign-on).

Introduction to Customer Retail 360

The Customer 360° feature provides a complete view of the customers by accumulating data about
various SBI products and services and displaying it in a single view. On the Customer 360 page,
the customer details can be displayed on two different views1. Card view 2. Classic/Tab view.

Card view Profile card, Recent transactions and

attachment card, Products Card, Product
Recommendations Card, Leads cards,
Activities card
Classic View, Summary, Products, Attachments, Leads,
Cases, Analytical Insights Activities,
Channel Usage, CMS cases, Joint
Ventures, Retail alerts, History
Corporate 360 The Corporate customer 360 view is a
complete view of the corporate customers
by aggregating data from various touch
points and displaying it in a single view. It
also has features similar to the retail
customer 360 view.
Lead Rating selection

Hot Lead Meaning Customer interest level is “High” Warm Lead Meaning Customer interest level
is “Medium” Cold Lead Meaning Customer interest level is “Low.

623
Lead flow from LOS

All external leads and LOS /LLMS products are automatically processed by CRM are saved under
the Fulfillment (Auto) milestone.
After receiving all the required valid documents if the amount is 50 Lacs or less it will be sent to
LOS and if the amount is more than 50 Lacs then it will be sent to LLMS for further processing, the
lead is updated as "Sent to LOS" or “Sent to LLMS”. You cannot make any changes to the lead
that is processed under this milestone. However, you can update the status of these leads through
LOS web page. Log in to LOS webpage. In the Personal Queue Details page, from the left side
Menu Tree column, click Lead Management icon. The CRM Details page is displayed. On the CRM
Details page, enter the lead ID in the Lead Id field. Click the Enquire button. On the CRM Details
page, under the Lead Id column, select the empty box next to the desired applicable lead. Click
the Create Application button. Observe that a pop-up message window from the website comes
up. In the pop-up message, click OK to open the Create New Application page. On the Create New
Application page, observe that almost all the details that are to be entered in the CRM are auto
populated. On the same page, update the other mandatory fields that are required for loan
processing and click on Submit. CRM will receive reverse feeds from LOS/LLMS & it will auto
update the status.

Card View
The Card View This view displays customer details such as leads and products in the form of
cards:

624
Classic View

Classic View From the card’s view of the customer, you can easily switch to the classic view by
clicking the Card View-Classic View Toggle button located on the right side of the page in card
view. Note: When you are in the classic view, click the same button to return to the card view.

Lead Rating selection

Hot Lead Meaning Customer interest level is “High” Warm Lead Meaning Customer interest level
is “Medium” Cold Lead Meaning Customer interest level is “Low.

625
 Complaints Management System
1. Central repository of customer cases that includes cases from across various branches of
bank.
2. Privilege access to only relevant users and 3600 view of the customer accounts.
3. Reduce/ eliminate the manual tracking of cases and ensure systematic escalation
management to reduce the case turnover time.
4. Ensure seamless and automatic customer communication at all stages of the customer
service life cycle.
5. Enable higher conversion rate of service cases to sales scenarios for SBI products.

ROLES AND RESPONSIBILITIES IN CMS (CCRC) CCRC RESOLVER:

• Upon receiving the case, Resolver at CCRC checks for the correctness/completeness of details.
Resolver can ‘’Re-Categorize’’ case. • Else Resolver changes the status to ‘’In-Progress’’.
• Now Resolver works on the resolution and has an option to the following: “Refer Higher Up’’
(RBO/LHO/Circle Head) OR ‘’Refer to Others’’ (Third Party) OR ‘’Sent to Approver’’
• If any additional information is required, cases can be referred to respective Branches.
• The Branches will respond with all required details and refer back the same to the referrer
(GITC/CCRC as the case may be)

CCRC APPROVER:
• Resolved case is routed to appropriate approver who can then change status to the following:
‘’Sent for Rework’’: This option is selected when approver finds the resolution is
incorrect/incomplete; such cases get routed back to Resolver OR ‘’Case Rejected by Approver’’:
Rejected case will be referred to LHO Checker. If the resolution is accepted by the Approver, the
Case is closed at this level itself.

LHO CHECKER:
• Case rejected by CCRC Approver is assigned to LHO Checker. He will be having three options:
1) Rejection Accepted – Case closed. Some financial cases will be referred to Internal Ombudsman
(IO) automatically
2) Rejection Rejected – Sent back to Approver with Checker’s observations
3) Sent for Rework - Sent back to Approver with Checker’s observations

626
 Branch Darpan
It is a web-based portal for branches and controller which covers areas under infrastructure, BCSBI
compliance, Anytime channels, CEEP compliance, e-lobby. The data can be submitted by
branches from 1st to 15th. Responses to choose from 0-4 range as mentioned below:

0 Poor
1 Average
2 Above Average
3 Good
4 Excellent

Based on Branch Darpan Score, branches have been categorized in 4 categories as under:
1. Platinum branches : 90 and above
2. Gold branches : =80 < 90
3. Silver branches : =70 <80
4. Bronze branches : <70
Path to access - https://darpan.statebanktimes.in. Alternatively, the site can be accessed from
SBI Times through the navigation: info.sbi>Useful links 1> Branch Darpan.
SWAYAM / GREEN CHANNEL COUNTER / GREEN REMIT CARD
SWAYAM - Barcode based Passbook Printing Kiosks
Process for mapping of customer’s account number to barcode sticker number:
• Go to CBS screen no 007104 and select Create.
• It will take you to CBS Screen 007105 and ask to enter the customer account number and the 8-
digit Serial Number mentioned below the Barcode as shown in the screen and press transmit.
Barcode number would be mapped to the customer’s account number. Barcode number can also
be de-mapped to an account number by choosing amend option on CBS screen no 007104.
Contact Details in case of Any complaint: Complaints can be lodged through mail, phone or through
SWAYAM dashboard. Escalation matrix available in SWAYAM dashboard.
Link for dashboard: https://swayamdashboard.statebanktimes.in/heatlh/
OR SBI Times ->My Workplace -> Useful links -> SWAYAM Dashboard -> Health dashboard.
GREEN CHANNEL COUNTER (GCC)
GCC is an initiative towards green banking.

Important Features
1. Green initiative, no need to fill forms for debit/credit/ transfer
2. Small device that can be used for cash (at SWO counters) and non-cash transactions (such as
fund transfer)
3. Operates through cards like ATM/debit card, GRC, SME Insta-deposit card and Business debit
cards
4. No VVR checking required for transactions done on GCC
5. Saves time and shifts risk to customer

627
Transaction Type Daily Limit (amount) Nature of Limit

Withdrawal transaction Daily withdrawal limit of GCC is a Combined daily limit for cash
through GCC part of daily limit of ATM/Debit withdrawal for both GCC and
Card (card variant wise) ATM/Recyclers
Fund transfer transaction Daily fund transfer limit of GCC is Combined daily limit for fund
through GCC a part of daily fund transfer limit transfer of Rs. 40,000/- for
of ATM/Debit Card Rs. 40,000/- both GCC and
(irrespective of card variant) ATM/Recyclers
Cash deposit No daily limit (i) By using ATM / Debit
card by the Customer per
transaction limit is Rs.
40,000/-
(ii) By using GRC per
transaction limit is Rs.
25,000/- with a monthly
limit of Rs.1.00 lac per
remitter.

COMPLAINTS / FEEDBACK: gcc.helpdesk@sbi.co.in

SBI GREEN REMIT CARD [GRC]

SBI Green Remit Card is a simple Magstripe based card without PIN. It helps to facilitate cash
deposits of small value, subject to monthly ceilings and monitoring. It facilitates walk-in customer
who are not having bank account (for instance, migrant workers) to remit funds to bank accounts
(of say, family members or others) by cash deposit.
Remitter to submit the KYC documents (proof of identity, with authenticated photographs
thereon) to get SBI Green Remit Card. There is no need for the branches to insist for address
proof document.

Deposit Limit: Limit per transaction - Rs.25,000/- (or)

Limit per month - Rs.1,00,000/- per remitter.

Important Features:
1. Cash deposit card for both home and non-home beneficiaries
2. Can be used on both GCC and CDM
3. Remitter can deposit cash to beneficiary's account at any SBI Branch
4. Remitter need not be customer of Bank
5. Remitter's photo-ID, mobile number and address are required
6. Issuance cost Rs.20/-
7. No VVR checking required for transactions done by GRC

Complaints / Feedback: grc.helpdesk@sbi.co.in

628
 CUSTOMERS RIGHTS POLICY 2020

Customer protection is an integral aspect of financial inclusion. The Policy enshrines basic rights
of the customers of the Banks regulated by the Reserve Bank of India. It spells out the rights of
the customer and also the responsibilities of the Bank.

Bank’s Key Commitments to the customer Right to Fair Treatment

Right to Transparency, Fair and honest
Dealing
Right to Suitability:
Right to Privacy:
Right to grievance Redressal and
Compensation.

Fair Lending Practices Code

To provide in a professional manner, efficient, courteous, diligent and speedy services in the
matter of retail lending. Not to discriminate on the basis of religion, caste, sex, descent or any
of them. To be fair and honest in advertisement and marketing of Loan Products. To provide
customers with accurate and timely disclosure of terms, costs, rights and liabilities as regards
loan transactions. If sought, to provide such assistance or advice to customers in contracting
loans. To attempt in good faith to resolve any disputes or differences with customers by setting
up complaint redressal cells within the organization. To comply with all the regulatory
requirements in good faith. To spread general awareness about potential risks in contracting
loans and encourage customers to take independent financial advice and not act only on
representations from banks.

COMPENSATION POLICY (BANKING SERVICES)

The objective of the "State Bank of India Compensation Policy for Banking Services", is to
establish a system whereby the Bank compensates the customer for the loss or inconvenience
due to deficiency in service on the part of the Bank or any act of omission or commission, directly
attributable to the Bank.

Unauthorized / Erroneous If the customer has suffered any financial loss incidental to return
Debit of a cheque or not carrying out of direct debit instructions due to
insufficiency of balance on account of the unauthorized /
erroneous debit, Bank will compensate the customer to the extent
of such financial loss Plus an amount equivalent to interest
calculated on the unauthorized/erroneously debited amount at
applicable Savings Bank rate, minimum Rs.100/-, besides
refunding the cheque return charges.

629
 In case verification of the entry reported to be unauthorised
/erroneous does not involve a third party, the process of
verification will be completed within a maximum period of 7
working days. If it involves a third party or where verification is to
be done at overseas centres, within a maximum period of one
month.

If a fraud, in the account of a customer, has been committed by a

member of staff, the Bank will not only restore the amount, but it
will also pay compensation @ 1% above the applicable interest
rate in respect of deposit/overdraft/loan account, for the period,
on the amount involved.

ECS direct debits/other In the event of non-compliance/delayed compliance of

debits to accounts instructions by the Bank, the customer will be compensated to the
extent of any financial loss the customer would incur on account
of delay. Plus, an amount equivalent to the interest calculated on
the amount to be debited, for the delayed period, at applicable
Savings Bank rate, with minimum of Rs. 100/-, subject to a
maximum of Rs.1,000.

Penal interest payable by Destination Bank would be held liable to pay penal interest at the
banks for delays in current RBI Repo Rate plus two per cent from the due date of
credit/return of credit till the date of actual credit for any delayed credit to the
NEFT/NECS/ ECS beneficiary’s account. Penal interest shall be credited to the
transactions beneficiary's account even if no claim is lodged.

Issue of ATM/Debit Cards The said ATM/Debit card will be taken back by the Bank and
without written consent of cancelled. The Bank would not only reverse the charges, if levied,
customers immediately but also pay compensation to the customer
@Rs.100.
Payment of Cheque after Bank shall reverse the debit on account of stopped cheque/
acknowledgement of Stop blocked ATM card with value dated credit within two working days
Payment Instructions/ Non- of the customer intimating the transaction to the Bank, and also
blocking of lost ATM card compensate the customer with Rs.100/-
after acknowledgement of
request for its blocking.

Limiting Liability of Zero Liability of a i) Contributory fraud/ negligence/

Customers in Unauthorised Customer: deficiency on the part of the Bank
Electronic banking (irrespective of whether or not the
transactions: transaction is reported by the
customer).

630
 (ii) Third party breach where the
deficiency lies neither with the bank
nor with the customer but lies
elsewhere in the system, and the
customer notifies the Bank within
three working days of receiving the
communication from the Bank (Cases
of phishing/spoofing such as
perpetrated by third parties by
creating fake sites etc., for stealing
INB credentials will not fall under this
category as customers are prima
facie negligent in verifying the
important details like URL/ name of
the website/https features etc.

Limited Liability of a i) In cases where the loss is due to

Customer negligence by a customer, such as
where he has shared the payment
credentials, the customer will bear
the entire loss until he reports the
unauthorised transaction to the Bank.
Any loss occurring after the reporting
of the unauthorised transaction shall
be borne by the Bank.

(ii) In cases where the responsibility

for the unauthorised electronic
banking transaction lies neither with
the Bank nor with the Customer but
lies elsewhere in the system and
when there is a delay of four to seven
working days after receiving the
communication from the Bank.

The per transaction liability of the

Customer shall be limited to the
transaction value or the amount
mentioned in Table 1, whichever is
lower.

631
 Type of Account Maximum
Liability
(INR)
BSBD Accounts 5,000
All other SB accounts 10,000

• Pre-paid Payment
Instruments and Gift
Cards

• Current/ Cash Credit/

Overdraft Accounts of
MSMEs

• Current Accounts/ Cash

Credit/ Overdraft
Accounts of Individuals
with annual average
balance (for 365 days
preceding the incidence
of fraud)/ limit up to
Rs.25 lakh

• Credit cards with limit

up to Rs.5 lakh
All other Current/ Cash 25000/-
Credit/ Overdraft
Accounts

• Credit cards with limit

above Rs.5 lakh
Full Liability of the If the delay in reporting is beyond
Customer seven working days, the customer
liability shall be full.

Reversal Timeline for Zero The bank will credit (shadow reversal) the amount involved to the
Liability/ Limited Liability of customer’s account within 10 working days from the date of such
customer notification by the customer. The credit shall be value dated to be
as of the date of the unauthorised transaction. Banks will ensure
that a complaint is resolved and liability of the customer, if any,
established within 90 days from the date of receipt of the
complaint.

632
Collection of cheques The time for credit of proceeds of Foreign Currency Cheques to
drawn on foreign countries the customer’s account will be 10 days from the date of credit to
NOSTRO account, including cooling period. However, it will not
be exceeding 45 days from the date of deposit of cheques/
instruments, except for the cheques/ instruments in Canadian
Dollar (CAD) for 10000/- & above, where it will be 10 days from
credit to NOSTRO account.

The compensation on account of delay in collection of instruments

in foreign currency will be paid in Indian Rupee, as detailed below:

a) At Savings Bank rate from the date of clear credit to Nostro

Account till the date of payment if the period of delay is beyond
prescribed collection period.

b) In case of abnormal delay, i.e., delay exceeding 45 days,

interest will be paid at term deposit rate applicable for the period
and for delays beyond 90 days, 2%above the applicable term
deposit rate.

c) In the event of the proceeds of cheque under collection being

required to be credited to an overdraft / loan account of the
customer, interest will be paid at the rate applicable to the loan
account, if the delay is less than 45 days. For abnormal delays,
i.e., beyond 45 days, interest will be paid at the rate of 2 % above
the applicable interest rate to the loan account.

d) Minimum of Rs. 25/-.

e) Compensation as detailed above shall be paid without any

formal demand from customer.

Compensation for adverse In case of delay beyond the date when the Forex amount is due
movement in exchange for credit, compensation is payable for adverse movement of
rates exchange rate.

i) In case the rate ruling on the date of payment is better for the
customer compared to the rate that was ruling on the day the
amount was due for credit, no compensation needs to be paid.

ii) In case the rate ruling on the date of payment is adverse for
the customer compared to the rate that was ruling on the day the
amount was due for credit, compensation shall be determined as
50 % of the difference between the two rates.
633
 Note: If the exporter has expressed willingness to keep part of
the proceeds in EEFC A/c, no compensation would be payable for
the amount not converted.
Collection of cheques SBI Branches* Branches
payable in India of Other
Banks
Collections between 6 days 7 days
Metropolitan Centres/ Major ‘A’
Class Cities (Mumbai, Chennai,
Kolkata, New Delhi,

Collections between places at 8 days 10 days

(a) above and State Capitals
(other than North-eastern
States & Sikkim) and Area I
Cities, i.e., Pune, Nagpur,
Kanpur, Surat,
Vishakhapatnam, Vadodara,
Kochi, Indore, Ludhiana,
Coimbatore, Agra, Madurai and
Varanasi

Collections between all other 10 days 14 days

Centres

Compensation on delay 1) Saving Bank rate for the period of delay beyond 7/10/14 days,
as the case may be, in collection of outstation cheques drawn on
other banks, i.e. [the interest will be payable] from 8th /11th /15th
day.

c) Where the period of delay is beyond 14 days, interest will be

paid at the rate applicable for term deposit for the corresponding
period or Saving Bank rate, whichever is higher.

d) In case of extraordinary delay, i.e., delays exceeding 90 days,

interest will be paid at the rate of 2% above the corresponding
Term Deposit rate.

e) In the event of the proceeds of cheque under collection to be

credited to an overdraft / loan account of the customer, interest
will be paid at the rate applicable to the loan account. For
extraordinary delays, i.e., delays exceeding 90 days, interest will
be paid at the rate of 2% above the rate applicable to the loan
634
 account. Minimum of Rs. 25/-. Such interest shall be paid without
any demand from customers in all types of accounts.

Compensation for delay in Cheques deposited in the drop-box within branch premises,
clearance of Local Cheques before the specified cut-off time will be sent for clearance on same
day, for which the clearance period will be T+1 working days.
Cheques deposited after the cut off time will be sent for clearing
on next day, for which clearance period will be T+2 working days.
The compensation to the customers is payable in case of delay in
clearance of local cheques beyond above stipulated period in all
types of accounts at Savings Bank interest rate.

Compensation for loss of The Bank shall immediately, on coming to know of the loss of
Cheques / Instruments in instrument, bring the same to the notice of the account holder. In
transit case intimation regarding loss of instrument is conveyed to the
customer beyond the time limit stipulated for collection, as per the
Cheque Collection Policy of the Bank, (7/10/14 days as the case
may be) interest will be paid for the period beyond the stipulated
collection period at the rates specified above.

Bank will pay interest on the amount of the cheque for a further
period of 15 days at Savings Bank rate to provide for possible
further delay in obtaining duplicate cheque /instrument and
collection thereof. The Bank would also compensate the
customer for any reasonable charges which he/she incurs in
getting duplicate cheque/instrument upon production of receipt,
subject to a maximum of Rs. 250/-

ATM Failure: It should be proactively reversed/ auto reversed in customers

Compensation to customer account within a maximum of T + 5 days. Failure to credit within
for settlement of disputed T+ 5 days shall entail payment of compensation to the customer
ATM transactions/ Cash @ Rs.100/- per day by the issuing bank, Suo moto without waiting
Deposit Machine for any claim from the customer.
(CDM)/POS Transaction.

Technical failure: Description Compensation Payable

Compensation to IMPS/UPI (Account debited but the @ Rs.100/- per day for delay
Customers for Mobile beneficiary account not credited). beyond T + 1 days
Banking/Internet UPI (Account debited but @ Rs.100/- per day for delay
Banking/Mobile Wallets transaction confirmation not beyond T + 5 days
and other Digital Products received at merchant location),
AEPS txn,

635
 Prepaid Instruments- cards or @ Rs.100/- per day for delay
wallets beyond T + 1 days

Compensation for delay in The concerned pensioner should be compensated for delay
Pension payment beyond the due date (last date of the succeeding month
subsequent to the month of issue of order by the concerned
Government department) at the rate of 8% (fixed rate) on the
revised pension / arrears for the delay period.

Compensation for delay in Duplicate IOI will be issued within 7 working days from the receipt
Issuance of Duplicate IOI of such request from the purchaser thereof. For delay beyond the
(Inter Office Instrument) above stipulated period, interest at the rate applicable for Fixed
Deposit of corresponding period will be paid.

Lenders’ liability: In the event of loss of title deeds to mortgaged property at the
Commitments to borrowers hands of the Banks, the compensation will cover out of pocket
expenses for obtaining duplicate documents on actual basis
subject to a ceiling of Rs.5000/- plus a lump sum amount, as
decided by the Bank in the following manner “The Bank would pay
the compensation for delay in return of securities/documents/title
deeds of the mortgaged property beyond 15 days of repayment
of all dues agreed to or contracted, subject to above conditions,
@ Rs.100/- per day (maximum Rs.5000/-) to the borrower”.
Compensation for wrongful The Bank shall take appropriate steps to investigate the reason
dishonour of cheques: for such lapses and shall communicate to the customer within 7
working days from the date of receipt of complaint. Otherwise, the
Bank may compensate the customer suitably for financial loss as
decided by the Bank with minimum of Rs.100/- per day for the
period of delay, subject to a maximum of Rs. 1,000/-, wherever
justified.

Timeline for payment of The amount of compensation for deficiencies in various

compensation categories of Banking Services as mentioned in this Policy should
be paid to the customers within 15 (fifteen) days after the
deficiency is acknowledged.

Automation of payment of 1. Unauthorised / erroneous debit.

compensation in CBS: IT- 2. ECS direct debits / other debits to accounts
CB 3. Issue of ATM / Debit cards without written consent of
customers.
4. Payment of cheques after acknowledgement of stop
payment instruction at Home Branch.
5. Compensation for delayed collection of export bills /
payment of foreign inward remittances etc., adverse

636
 movement of forex rates and also payment of interest for
delay in payment to the exporters on export bill sent for
collection and realized by authorized dealers.
6. Delay in credit / return of NEFT/NECS/ECS transactions
7. Collection of cheque drawn on foreign countries
8. Cheque, lost in Bank’s custody, payable in India
9. Cheque, lost in Bank’s custody, payable in foreign
countries Disputed ATM transactions
10. Delay in credit of pension
11. Delay in issuance of duplicate IOI.
12. Lenders’ liability, delay in return of securities documents

Centralized Public Grievance Redress and Monitoring System (CPGRAMS)

Centralised Public Grievances Redressal and Monitoring System (CPGRAMS) is an online web
enabled system over NICNET developed by NIC, in association with Directorate of Public
Grievances (DPG) and Department of Administrative Reforms and Public Grievances (DARPG).
CPGRAMS is a platform based on web technology which primarily aims to enable submission
of grievances by the aggrieved citizens from anywhere and anytime (24 x 7) basis to Ministries
/ Departments / Organisations who scrutinize and take action for speedy and favourable redress
of these grievances. It links 89 Central Government Ministries/Departments/Organization.
The redressal time is expected to be within 60 days but preferably 30 days. Corporate Centre
monitors the position by sending daily emails to Circles and weekly notes put up to MD on the
pending position beyond 15 days.
The Department of Administrative Reforms and Public Grievances (DARPG), Government of
India is the nodal agency to formulate policy guidelines for citizen-centric governance in the
country.
Time Norms of redressal of Grievance: 30 days from the date of receipt at DARPG
Our Bank has set Grievance Redressal Time: 15 days.

INGRAMS - Integrated Grievance Redressal Mechanism (INGRAM)

This website – consumerhelpline.gov.in has been launched by the Department of Consumer
Affairs to create awareness, advice and redress consumer grievances and act as a central
registry for lodging consumer grievances.
Any aggrieved consumer can register his / her grievance by either calling the toll-free number
1800-11-4000 or 14404 and talk to an agent or register himself once in the portal, get an user
id and password and lodge his grievance himself.

637
 Litigation Management System (LITMAS)

This system enables user to view, manager and create litigation cases related to Human Resources
(HR), Consumer Forum, Civil, Criminal, DRT and SARFAESI both for cases filed by and filed against
SBI. It helps in generation of reports in the required format and also provides a graphical
representation of the existing cases in the system. With the help of LITMAS, user departments can
keep track of all the litigation cases related records and generate any MIS report based on these
data. The system automates the existing SBI Legal Litigation Workflow, captures all case related
information and generates customized MIS.

638
 Right to Information Act, 2005
The Right to Information Act, came into force on 12 October 2005. The new law empowers Indian
citizens to seek information from a Public Authority, thus making the Government and its functionaries
more accountable and responsible.

Obligations of the Bank under RTI The Bank being a public authority has the following obligations under Section
Act 4 of the RTI Act to facilitate the Right to Information. • Obligation to maintain
records. • Obligation to publish and update every year certain particulars in
respect of the bank. • Obligation to publish details in respect of important
policies. • Obligation to provide reason for administrative/ quasi-judicial
decisions. • Obligation to provide as much information Suo moto.
Exemptions available to Bank while The exemptions from disclosure of information available in terms of Section 8
disclosing information under the of RTI Act are as follows: • Personal Information • Commercial Confidence •
RTI Act Fiduciary Information • Information which would endanger the life • Information
which would impede the investigation/prosecution.
Request be made for seeking The request can be made in writing or through electronic means in English or
information under RTI Act Hindi or in any Regional official language. The request should be
accompanied by the prescribed fee which is Rs.10/- for an application.
However, the people below poverty line need not pay any fee.
CPIOs and CAPIOs Under obligation of RTI Act, 2005, Bank has to designate Central Public
Information Officer(s) [CPIO(s)] for the purpose of providing information to a
person requesting for such information and Appellate Authority for the
purpose of deciding the appeals against the decision of the CPIO. Central
Assistant Public Information Officers (CAPIOs) are appointed for the purpose
of accepting 45 the applications / appeals from the citizens and to forward the
same to CPIO or Appellate Authority as the case may be.
CAPIOs - Branch Heads (SMGS- IV & below)
CPIOs - Regional Managers (for other branches)
Appellate Authority - GM (Respective Networks)
Time frame for disposal of requests The normal time available for a CPIO to dispose the application is 30 days
under RTI Act from the date of receipt of the application. However, in respect of application
received through a CAPIO, the CPIO has a time limit of 35 days from the date
of receipt of the application by the CAPIO. If the information sought by the
applicant concerns the life or liberty of a person, the same has to be disposed
within 48 hours of the receipt of the request.

Appeal An applicant who does not receive a reply within the specified period or an
applicant who is not satisfied with the decision of the CPIO can prefer an
appeal within 30 days to the Appellate Authority in the Bank. The Appellate
Authority has to dispose of the appeal within 30 days or within such extended
period not exceeding a total of 45 days from the date of receipt of the appeal.
Penalties under RTI Act The Central Information Commission (CIC), at the time of deciding any
complaint or appeal has the power to impose a penalty of Rs.250/- per day
subject to a total of Rs.25,000/- against the CPIO in cases where it considers
the action of CPIO against the rules of RTI Act.
Charges under RTI a) Rs. 2/- for each page created or copied (in A4 or A3 size paper).
(b) Actual charge or cost price of a copy in larger size paper.
(c) Actual cost or price for samples or models.
(d) Rs. 5/- per hour for inspection of records. No fee for the first hour.

639
 (a) Rs. 50/- per diskette or floppy.
(b) Price fixed for the printed publication or Rs. 2/- per page of photocopy for
extracts from the publication.
Consumer Protection Act 2019
Introduction 1. COPRA 1986 was enacted on 24th December 1986.
2. COPRA 2019 has been enacted on 9th August 2019
the act has replaced the COPRA 1986.

Applicability This Act is applicable to all goods and services save as

otherwise expressly provided by the Central Government by
notification.
Purpose 1. Better protection of the interest of consumers
2. Establishment of Consumer Protection Councils
3. Establishment of Consumer Protection Authorities
4. Timely and effective settlement of consumer
complaints
5. Shifting from Caveat Emptor to Caveat Venditor

Rights of the Consumers Right to be informed

Right to access to a variety of goods and services.
Right to be heard
Right to seek redressal
Right to consumer education
Right to be protected

Central Consumer Protection The Bill (COPRA 2019) sets up the Central Consumer
Authority Protection Authority (CCPA). CCPA will have mandate to
regulate matters related to unfair trade practices and false
and misleading advertisements.
It will be headed by a Chief Commissioner and comprise
other Commissioners.
It will have an investigation arm headed by a Director
General.

Objectives of CCPA 6. To promote, protect, and enforce the rights of

consumers as a class
7. Issue safety notices
8. Pass orders to recall goods
9. Prevent unfair and restrictive trade practices
10. Penalties for false and misleading advertisements
11. File complaints before the Consumer Disputes
Redressal Commissions.
Consumer Disputes 12. National: Complaint amount exceeds Rs. 10.00 crore.
Redressal Commissions & 13. State: Exceeds Rs. 1.00 crore but does not exceed
their Pecuniary Jurisdiction Rs. 10.00 crore.
640
 14. District: Does not exceed Rs. 1.00 crore

Who can File a Complaint? 15. A Consumer

16. Consumer Association
17. More than one Consumers having the same interests
18. Legal heir or Legal representative
19. Parents or Legal guardian
20. CCPA
Appeal Appeal against the Appeal preferred Timeline
order of before
District CDRC State CDRC 45 days
State CDRC National CDRC 30 days
National CDRC Supreme Court of 30 days
India
CCPA National CDRC 30 days
Penalty for non- compliance of 21. Imprisonment for a term which shall not be less than
order one month, but which may extend to three years,
or
22. Fine, which shall not be less than Rs. 25000.00, but
which may extend to Rs. 1.00 lacs,
or
23. with both

PSB Alliance for Doorstep banking Services

The PSB alliance Doorstep Banking services were launched by the Hon Finance Minister
on 09th Sept 2020.
Services Limit (per request) Launch Date
Life Certificate Life Certificate 2 (PPOs) pensions 01.11.2020
Cash Pick up (Deposit) Minimum - Rs. 1,000/- 31.10.2020
Maximum- Rs. 10000
Cash Delivery (Withdrawal)

Life Certificate shall be obtained using Jeevan Pramaan Application fulfilled through
biometric authentication. The Jeevan Pramaan ID generated shall be shared with Bank for
further process. In case of failure to obtain Digital Life Certificate (DLC) due to poor
connectivity, biometric authentication failure etc. after 3 attempts, physical Life Certificate
shall be obtained by the Agent and submitted to Branch for further process. Cash Pick up

641
 (Deposit) and Cash Delivery (Withdrawal) transaction shall be fulfilled using Micro - ATM.
The transaction can be done using AePS (Aadhar enabled Payment
System) or through Debit Card. DSB services, wherever available mandatorily, shall be
completed expeditiously but not later than T+1 working day, whereas in case of best effort
basis, shall be completed expeditiously but not later than T+4 working days. With addition
of branches, Doorstep banking Services shall now be available at15131 branches
(Mandatory basis- 14049 branches and best effort basis -1082branches) pan-India. Apart
from senior citizens of more than 70 years of age and differently abled or infirm
persons (mandated by RBI), DSB services shall also be provided to illiterate
customers under branch staff channel. To provide end to end process/solutions including
manpower for service delivery at 100 centres pan-India, two companies have been
designated by the Bank i.e., M/s Atyati Technologies Pvt Ltd to provide DSB services at
60 centres and M/s Integra Microsystems Pvt Ltd to provide DSB services at 40 centres.
Doorstep Banking Services can be accessed through Mobile App, Web Portal and Call
Centre.

Preventive Vigilance
Preventive Vigilance Preventive Vigilance Committees have to be formed at the
Committee (PVC)
Constitution of PVC
Meeting frequency
Preventive Vigilance
Preventive Vigilance means strengthening the systems and
procedures, compliance of rules and regulations in true spirit
and meaningfully, proper control and supervision and take all
steps and measures so that frauds do not occur.
following branches/ operating units of the Bank.
1. Branches having staff strength of 10 or more. (Once a
fraud is detected at a branch, irrespective of the staff
strength).
2. All processing units like RACPC/ SMECC/CPPC and
handling Back-office activities like LCPC/ CPPC/ CAC/
DAC
30 % of staff members, minimum 3 officers/employees should
be co- opted on the PVC of each unit. The head of the Branch/
Unit and official dealing with operational risk would be
permanent members and other members to be rotated at
yearly intervals.
The meeting of the PVCs may be held at least once in a
quarter.

642
 Nomination and Deceased Account Settlement

Nomination is done as per

Section 45ZA to 45ZF of Banking Regulation
Act 1949

Customers not opting for 1. Specific letter to the effect that he does not
Nomination facility want to make a nomination should be obtained.

Nomination facility in respect of 1. Nomination facility is available in individual

deposits accounts accounts including a sole proprietary concern.

2. Nomination shall be made only in favour of

individuals”. As such, a nominee cannot be an
Association, Trust, Society or any other
Organization or any office-bearer thereof in his
official capacity. In view thereof “any
nomination other than in favour of an
individual will not be valid”.

3. The nomination shall be made in favour of only

one individual.

4. There cannot be more than one nominee in

respect of a joint deposit account.

5. Banks may allow variation/cancellation of a

subsisting nomination by all the surviving
depositor(s) acting together. This is also
applicable to deposits having operating
instructions "Either or Survivor".

6. In the case of a joint deposit account the

nominees right arises only after the death of all
the depositors.

7. Where the nominee is a minor, the depositor/ all

the depositors, may, while making the
nomination, appoint other individual not being a
minor, to receive the amount of the deposit on
behalf of the nominee in the event of the death
of the depositor/depositors during the minority of
the nominee.

8. Nomination in favour of other than individual

is invalid.

643
 1. In the case of a deposit made in the name of
minor, the nomination shall be made by the
person lawfully entitled to act on behalf of the
minor.

2. A nomination, cancellation of nomination or

variation of nomination may be made at any
time.

3. In the case of a deposit held to the credit of more

than one depositor, the cancellation or variation
of a nomination shall not be valid unless it is
made by all the depositors surviving at the time
of the cancellation or variation of the
nomination.

4. A nomination or cancellation on nomination or

variation of nomination shall not ceases to be
in force merely by reason of the renewal of the
deposit.

Nomination Forms for Bank 1. DA-1(Registration of Nomination)

deposits
2. DA-2(Cancellation of Nomination)
3. DA-3(Variation of Nomination)

1. SL1-Registration of Nomination in case of sole

Nomination Forms for Lockers hirer
2. SL1A- Registration of Nomination in case of
joint hirer
3. SL2-Cancellation of Nomination
4. SL3-Variation of Nomination

Nomination Forms for Safe 1. SC1-Registration of Nomination

Custody 2. SC2-Cancellation of Nomination
3. SC3-Variation of Nomination

Nomination in Singly Operated

Lockers 1. Only one nominee is allowed

Nomination in Jointly Operated

Lockers 1. Upto Two Nominees are allowed.

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Nomination in Jointly Lockers with
E/S, F/S, A/S 1. Nomination is not available.

Nomination in Safe Custody 1. Allowed only for Single Customer.

2. No nomination in case of jointly depositing
articles.
3. Only in favor of one customer.

Deceased Case Settlement

A) Deceased Case Settlement in case of an individual single account

1.Nomination 1. Pay to nominee in case of death of customer

Documents required for settlement

1. Copy of the death certificate of the deceased
depositor
2. KYC documents of the nominee for identification
3. Claim Form

2. No nomination without legal 1. Pay as per legal Representation

representation. 2. Pay as per without legal representation

Documents to be obtained for the Documents to be obtained where the settlement

settlement amount is upto 5 lacs.
1. Revised Claim form signed by the Claimants
2. Annexure A -Letter of Disclaimer signed by
claimants who relinquish their rights (stamped
and notarized)
3. Annexure-C (COS 540 -letter of Indemnity)
Signed by Claimants who will receive the
payment.

Additional documents obtained where the settlement

amount is more than 5 lacs.
4. Annexure-B (COS 539) Affidavit signed by
independent person who knows the deceased
(stamped and notarized).
5. Annexure-D Opinion report on surety

645
 6. Annexure-C (COS 540 -letter of Indemnity)
Signed by Claimants who will receive the
payment and [Surety(ies) if the claim amount is
above Rs. 5 lakhs]
7. Statement of Assets and Liabilities from the
surety (ies) if the claim amount is above Rs. 5
lakhs.

3.No nomination with legal

representation As per legal procedure

Documents to be obtained for the

settlement

B) Deceased Case Settlement in case of Joint account with nomination

Joint account in the name of A Situations Payments

and B
Nomination is recorded in favour B and the legal heirs of
of X A is deceased A

(Cannot nominate more than

one individual in respect of A and B are deceased Payment to X
jointly operated deposit
accounts)

Situations Payments
Joint account in the name of A B A is deceased
& C with survivorship clause B/C (as per the
mandate)
Nomination is recorded in favour
of X
A and B are deceased C

A, B and C are deceased

X

646
C) Payments of Deceased Claims Settlement without Nomination and without Legal
Representation

1.Joint account in the name of Situations Payments

A and B
Mode of operation is JOINTLY A is deceased B and the legal heirs of
A

A and B are deceased Legal Heirs of A and

Legal Heirs of B

2.Joint account in the name of

A and B (Mode of operation is A is deceased
B
E OR S)

A and B are deceased Legal Heirs of A and

Legal Heirs

of A and B

3.Joint account in the name of A is deceased B, C and Legal Heirs of A

A B & C with survivorship
clause A and B are C, Legal Heirs of A, Legal Heirs
deceased of B

No Nomination with
survivorship clause A, B and C are Legal Heirs of A, Legal Heirs of B
deceased and Legal Heirs of C

4.Joint account in the name of

A B & C with survivorship
clause A is deceased B&C

If B and C wants to continue the

account, A can be deleted, and
account can be continued

647
 A and B are deceased C

If C wants to continue the

account, A and B can be deleted,
and account can be continued
No Nomination with and no A, B and C are Legal Heirs of A, Legal Heirs of B
survivorship clause deceased and Legal Heirs of C

1. Savings Bank Account/Current Account – The

Important Instructions survivor(s) to close the existing account and transfer
the balance to a new account in their own name and
a fresh account opening form should be taken.

1. Term Deposits – if on the request from legal

heir(s)/representative(s)/ nominee the deposit may
be split and receipts may be issued in the legal
heir(s), it shall not be construed as premature
withdrawal of Term Deposit.

1. Payment before maturity at the rate applicable

without any penalty if payment is sought.

2. The survivor(s) can continue with the same account

by deleting the deceased depositor’s name form
the TDR/STDR/other FDs.

3. In case of overdue period interest may be paid for

the overdue period and interest is paid at the lower
of the under rates:

1. The rate mentioned in the original receipt / advice

2. The rate applicable on the date of maturity for a
fresh deposit for the overdue period.

Public provident Fund 1. Pay to the nominee(s) as per their share. If no such
Accounts Deceased proportion or share is specified, then in equal
Settlement proportion to all the surviving nominees.

2. If any nominee dies, his specified share in the

eligible balance shall be distributed among the
648
 surviving nominees in the same proportion as their
specified shares.

3. If a depositor dies and there is no nomination in force

at the time of his death, and Legal Representation
as granted in the Indian Succession Act, 1925 (39 of
1925) is not produced within six months from the
death of the depositor to the authorized officer then
the legal heirs can be paid on the basis of Affidavit
and Indemnity for the claim amounts up to Rs. 5
lakhs.

4. If the eligible amount in a deceased account is

above Rs. 5 lakhs, the amount shall be paid by the
Accounts office to the claimant on submission of
‘Succession Certificate’ issued by the court along
with the other documents.

Payment of Cheques Deceased account after receipt of intimation of Death

Individual accounts 1. Cheques should be returned even if dated prior to

death.

Partnership accounts
1. Cheques drawn on an account where one of the
partners is deceased cannot be paid. A fresh
account may be opened with remaining partners
with fresh documents and operations allowed in that
HUF accounts account.

1. If one of the Co‐parceners dies, Karta can operate

the account provided that the deceased has not left
a will.
Club and Associations 1. On the death of an office bearer, operations on the
account should be stopped.
2. However, chequesdrawn before the death of such
office bearer shall be paid.
3. The account will remain dormant till such time the
Bank receives a fresh resolution on the operations
in the account.

Trust account 1. Unless there is anything contrary to this in the trust

deed, surviving trustees can operate the account.

649
Competent authorities for
issuing Death Certificate 1. Registrar of Birth and Deaths.

2. The local Sarpanch duly countersigned by the BDO

or Tehsildar in case of Death in remote Village
(Under Registration of Births and Deaths Act)

The Death Certificate should be recorded in Branch Sundry

Document Register and updated in the CBS immediately
(Flag the CIF)

In case of joint accounts, the deceased person name to be

deleted as per the banks instructions to avoid further
complaints from the customers.

Description of Legal Terminologies

Natural Guardian Guardian on behalf of the minor, as per personal laws. He
represents the minor’s interest in respect of all movable assets
and his actions will bind the minor.

Legal Guardian Appointed by the Court to represent the interest of the minor.
His action binds the minor in respect of all acts permitted to be
done by the Legal Guardian under the order of the Court.

Natural Guardian under

Father and after the father, the mother. The Guardian is
Hindu Law appointed under the will executed by the father or mother to
manage the assets of the minor. In case of Married Women, the
Husband.
Natural Guardian of a Husband
Minor married Women
under the Hindu Law.

Natural Guardian under Father and after the father, Father’s Father. The Guardian is
Muslim Law appointed under the will executed by either the father or father’s
father to manage the assets of the minor.

Natural Guardian of a Father and after the father, Father’s Father

Minor married Women
under the Muslim Law.

650
Natural Guardian of a Father and after the father, Mother.
Christian Minor.
The appointment of Guardianship and Wards Act, 1890
Guardian by the Court is
governed by Which Act
and is applicable to all
Indians.
Legal position of Survivor. Survivor is entitled by the survivorship clause only to receive
the money from the Bank, but he does not get any title to it., the
survivor holds the money thus received as trustee for the legal
heirs.

Payment in accordance It shall constitute a valid discharge irrespective of any claims by

with the nomination any person under a will or otherwise. If the bank receives a court
despite existence of will order restraining the payment to the nominee due to a rival
claim, then the Court order should be carried out.

Legal representation It is granted by the Court of Law entitling the legal heirs of the
deceased to collect the debts/ securities or assets of the
deceased.
Succession Certificate Granted only in respect of debts and securities and when the
deceased has not left any will.

1. It does not cover gold ornaments, articles in safe custody and

safe deposit lockers.

2. Valid throughout India, even when granted by District Court.

Wills and Probate If the deceased customer has left a will, it must be produced in
the court. The Court after satisfying that it is the last will of the
deceased and is duly executed will issue a probate.

Claim can be settled in favour of beneficiaries in whose favour

the deposits/ gold ornaments / content of Safe Deposit Locker/
articles kept in Safe Custody are bequeathed on the strength of
the will which is probated.
Important Provisions of 1. An executor is appointed by the person making the will
Will empowering him or her to do all acts specified in the will.

2. It applies to both immovable and moveable properties.

3. It is not a compulsorily registrable document.

651
 4. It is compulsorily required to be attested by two attesting
witnesses, who are not beneficiaries under the will.

5. A probate issued by the High Court is valid throughout India.

6. If it is issued by the District Court, the probate is valid within

the state. In case the value of the property outside the state
does not exceed 10,000/- it is even valid outside the state.

7. It is not required to be compulsorily probated in all states of

India.

Muslim Laws regarding A Muslim cannot dispose of by will more than 1/3rd of the
the will property and any disposition of the property in excess of one
third is void.

Order granted by the He grants a certificate (equivalent to succession certificate)

Administrator General where the amount of deposit does not exceed Rs 50,000/-
attached to a High Court.
Codicil Amendments or Supplementary will, additing to the contents of
the earlier will.
Died Testate The Deceased person left the WILL.
Died Intestate The person died without leaving WILL
Letter of disclaimer When there are more than one heir and payment is to be made
to lesser number, a stamped letter of disclaimer will be
executed by executed by all the remaining Class I heirs (not by
or on behalf of the minor). It is required to be attested by Notary
Public.
Letter of Indemnity To be executed duly stamped by the Claimant’s (Other than
those who have signed letter of disclaimer) jointly with surety
good for the amount involved.

Probate Certified Copy of the Will granted by the Competent Court

WILL Declaration of the intention of a testator with respect to his

property to be carried out after his death. It is defined under
section 2(h) of Indian Succession Act 1925.
Testamentary Guardian Is appointed by the WILL
Legatee The Person who inherits the property under the WILL
Testator One who makes the WILL

652
Defense Personnel The assets left with the Bank by deceased Army, Air force, navy
personnel can be disposed off without the production of legal
representation irrespective of the amount as per the following
acts
1. Army and Air Force.
As per provisions of the Army and Air force (Disposal of private
property) Act, 1950

2. Navy
Disposal to be done in accordance with Navy Act, 1957 under
section 171, 172 and 174.
Settlement of Claims in As per the provisions of Section 108 of the Indian Evidence Act,
respect of Missing 1872 the presumption of death can be raised only after a lapse
Persons (Legal Death) of seven years from the date of his/her being reported missing.

But when the Claim Amount is up to Rs. 100,000 (Rupees One

lakh) and the person reported missing for a minimum period of
one year, the amount is settled on production of the following
documents.

a. FIR

b. non-traceable report issued by the police authorities

c. Indemnity from the claimant

The claims in respect of missing person above Rs. 100,000/-

will be settled after getting court order from the competent court.

653
 Safe Custody and Safe Deposit Lockers

Locker -Relationship Licensee and Licensor

Or

Lesse (Customer) and Lessor (Bank)

Safe Deposit- Relationship

Bailee (Customer) and Bailor
(Bank)

Sizes - 04 4 Sizes (Small, Medium, Large and Extra

Large)

Types - 11 1. Small (A, B),

2. Medium (C, D, E H1),
3. Large (F, G, H),
4. Extra Large (L, L1)

Customer Due Diligence (CDD)

Mandatory for existing and new customers

Provisions of a Locker 1. Can be rented to NRIs, Blind, literate

or illiterate, single or Joint

2. POA holders can operate the lockers

but not surrender it.

3. Search warrant for Locker issued by

Income Tax Department should bear
the Signature of the Official not below
the Rank of Commissioner of Income
Tax.

4. For surrendering the Locker,

customer has to give prior notice of at
least seven days.

654

Allotment of Lockers
Eligibility for Lockers
Security Deposit for Lockers
Rent payable by new locker hirers.
For existing locker hirers
Documents to be obtained
655
5. Bank has General Lien and can
recover the arrears in rent by sale of
contents after giving adequate notice.
1. Branch to maintain list of vacant
lockers as well as waitlist in a register.
2. All applications should be
acknowledged and given a waitlist
number.
3. The Locker should be allotted on first
come first serve basis.
4. A written Communication should be
sent with registered post giving him
min 15 days to acquire the locker.
Can be Hired by an Individual singly or jointly
with other Individual.
STDR for the amount that would cover three
years rent and locker break opening
charges.
Rent will be payable in Advance upto 31st
March of the current FY on pro rata basis
along with 12 months’ rent of the following
year. After that locker rent will be recovered
every year on 2nd April.
Banks shall not insist on such Term Deposits
from the existing locker holders or those who
have satisfactory operative account.
After that locker rent will be recovered every
year on 2nd April.
1. KYC Documents,
2. Locker Application,
3. Locker Allotment letter,
4. Locker Agreement (COS 404),
5. Nomination Form {SL-1 (Single
Hirer), SL-1A (Joint Hirer)},
6. Locker Card.
Locker Rent 1. Banks Deposit at the time of allotment
equivalent to three years’ rent and the
charge for breaking opens the locker
in case of such eventuality.

2. If physical relocation of the lockers is

required due to any event such as
merger / closure / shifting of branch,
the branch to give public notice in two
newspapers (including one local daily
in vernacular language).

Lockers to Visually Impaired Person 1. They may be allotted suitable lockers,

convenient for operations.

2. Literate Visually Impaired Customers

will also be required to put his thumb
impression along with his/her
signature.

3. Locker access register should be

signed by Visually Impaired
Customer, in presence of a witness,
who can be customer or any other
official other than Locker In charge.

4. After operation of Locker by Visually

Impaired (VI) Customer, Locker in
charge should ensure that the locker
cabinet is locked, and no article is left
outside.

Jointly Operated Locker, when one of them 1. Co hirer, who is not blind, may be
is not blind. allowed to operate the locker only
jointly with the Customer.

2. Signature in the Locker Access

Register should be done by VI
Customer as well as Joint Locker
Holder, along with witness.

656
Custodian Master Key and hireres key of
unrented and surrendered lockers
Loss of Keys
Should not be held by the same
Official.
1. Break open and Change of Locker
done by the representative of the
Locker Supplier in presence of Hirers
and Locker In charge after taking prior
approval from the Controlling
Authority,

2. If Lockers are hired in Joint names,

the letter advising loss of keys should
be signed by all the hirers. They
should all be present or should jointly
authorize one or more of them to be
present during the break open.

Embossing of Keys 1. It is required to facilitate the

identification of Bank and Branch
providing safe deposit locker on the
basis of locker keys.

Lockers to Minors 1. Not provided either in their single

names or jointly with others.

Allotment of Surrendered Locker to New It should be ensured that: -

Customer
1. Surrender letter is signed by all the
Locker Hirers.

2. Locks have already been

interchanged with that of a vacant
locker (In presence of two officials
one having the custodian key and
other having hirers key of unrented
lockers).

3. Key Register is updated accordingly

4. Swapping of Keys has been recorded

in CBS.

657
 minimum number of operation Medium and At least once in three years for Medium Risk
High-Risk Lockers and Once in a Year for High Risk
Categorized Locker hirers.
Action required at Branch level if Locker is 1. He/She should be immediately
not being operated as per prescribed contacted and advised either to
periodicity. operate the locker or surrender.

2. In case the Customer does not

respond or operate the locker,
opening of the locker can be
considered after following due
procedure.

3. If the locker remains inoperative for a

period of seven years and the locker-
hirer cannot be located, even if rent is
being paid regularly, the bank shall be
at liberty to transfer the contents of
the locker to their nominees / legal
heir or dispose of the articles in a
transparent manner.

Discharge of locker contents by banks due 1.
to non-payment of locker rent
Banks shall have the discretion to
break open any locker following due
procedure if the rent has not been
paid by the customer for three years
in a row.

2. The bank shall ensure to notify the

existing locker-hirer prior to any
changes in the allotment and give
him/her reasonable opportunity to
withdraw the articles deposited by
him/her.

3. Banks shall ensure that the inventory

prepared after breaking open of the
locker and during settlement of
claims, is in the appropriate forms.

4. Further, banks shall not open

sealed/closed packets left with them
658
 for safe custody or found in locker
while releasing them to the
nominee(s) and surviving locker
hirers / depositor of safe custody
article, unless required by law.

Valuables Found in Locker Room It should be retained as Safe Deposit Article

at the Branch in a Packet Sealed with the
personal seals of both the joint custodians of
Cash.

659
 NPA Management

1. Definitions:
Non-Performing Assets (NPA): An asset becomes non-performing when it ceases to
generate income.

An NPA is a loan or an advance where:

➢ Term Loan: Interest and/or instalment of principal remain overdue for a period of more
than 90 days.
➢ Overdraft/Cash Credit: A CC/OD account shall be treated as ‘out of order’ if:
i. The outstanding balance in the CC/OD account remains continuously in excess of the
sanctioned limit/drawing power for 90 days, or
ii. The outstanding balance in the CC/OD account is less than the sanctioned limit/drawing
power but there are no credits continuously for 90 days, or the outstanding balance in the
CC/OD account is less than the sanctioned limit/drawing power but credits are not
enough to cover the interest debited during the previous 90 days period. Previous 90
days period’ shall be inclusive of the day for which the day-end process is being run.
➢ In case of bills purchased / discounted – the bill remains overdue (any amount is overdue to
the Bank when not paid on the due date) for a period of more than 90 days.
➢ The instalment of principal or interest thereon remains overdue for two crop seasons for short
duration crops (Agriculture segment).
➢ The instalment of principal or interest thereon remains overdue for one crop season for long
duration crops (Agriculture segment).
➢ The amount of liquidity facility remains outstanding for more than 90 days, in case of a
securitization transaction undertaken.
➢ In case of derivative transactions, the overdue receivables representing positive mark-to-
market value of a derivative contract, if these remain unpaid for a period of more than 90
days from the specified due date for payment.
➢ In case of interest payments, an account should be classified as NPA only if the interest due
and charged during any quarter is not serviced fully within 90 days from the end of the
quarter.
➢ Drawings in the working capital accounts are to be covered by adequate value of current
assets. DP is to be arrived at based on the current stock statement, not to be older than three
months. DP computed based on the stock statements older than three months, would be
deemed irregular.
➢ A working capital account will become NPA in case of irregular drawings for a continuous
period more than 90 days even though the borrowing unit is working, or the borrower’s
financial position is satisfactory.
➢ Renewal Pending: Regular and ad hoc credit limits need to be reviewed / regularized not
later than three months from the due date / date of ad hoc sanction. In case of constraints
such as non-availability of financial statements and other data from the borrowers, the branch
should furnish evidence to show that renewal/ review of credit limits is already on and would
be completed soon. In any case, delay beyond six months is not considered desirable as a
general discipline. Hence, an account where the regular / ad hoc credit limits have not been

660
 reviewed / renewed within 180 days from the due date / date of ad hoc sanction will be
treated as NPA.
2. Income recognition policy
• The income recognition policy is based on the record of recovery. Income from NPAs is not
recognized on accrual basis but is booked only when actually received. Therefore, the Bank
shall not charge and take to income account interest on any NPA. This will apply to
Government guaranteed accounts also.
• Interest on advances against Term Deposits, NSCs, IVPs, KVPs and Life Insurance policies
may be taken to income account on the due date, provided adequate margin is available in
the accounts.
• Fees and commissions earned by the Bank as a result of renegotiations or rescheduling of
outstanding debts should be recognized on an accrual basis over the period of time covered
by the renegotiated or rescheduled extension of credit.

3. Reversal of Income
• If any advance, including bills purchased and discounted, becomes NPA, the entire interest
accrued and credited to income account in the past periods, should be reversed if the same
is not realized. This will apply to Government guaranteed accounts also.
• In respect of NPAs, fees, commission and similar income that have accrued should cease
to accrue in the current period and should be reversed with respect to past periods, if
uncollected.
• Interest Application: On an account turning NPA, Bank shall reverse the interest already
charged and not collected by debiting to Profit and Loss account and stop further application
of interest. However, it may continue to record such accrued interest in a Memorandum
account in Bank’s books.

4. Appropriation of recovery in NPAs

• Interest realized on NPAs may be taken to income account provided the credits in the
accounts towards interest are not out of fresh / additional credit facilities sanctioned to the
borrower concerned.
• Appropriation of recoveries in NPAs (i.e. towards principal or interest due), as per the
Bank’s extant instructions is done in accordance with following priority:
➢ Charges
➢ Unrealized Interest
➢ Interest
➢ Principal

5. Asset classification
Categories of NPAs: NPAs are to be classified into the following three categories based on the
period for which the asset has remained non- performing and the realizability of the dues:

➢ Substandard Asset: An asset which has remained NPA for a period less than or equal to
12 months.
➢ Doubtful Asset: An asset which has remained in the substandard category for a period of
12 months.

661
 ➢ Loss Asset: A loss asset is one where loss has been identified by the Bank or internal or
external auditors or the RBI inspection team, but the amount has not been written off wholly.
• Asset classification shall be borrower-wise and not facility-wise.
• Advances under consortium arrangements: Classification shall be done based on the
record of recovery of the individual member banks and other aspects having a bearing on
the recoverability of the advances.
• Accounts where there is erosion in the value of security/ frauds committed by
borrowers: In cases of such serious credit impairment, the asset should be straightaway
classified as doubtful or loss asset as appropriate:
➢ Erosion in the value of the security- if the realizable value of security is less than 50% of the
value assessed by the Bank or accepted by RBI at the time of last inspection, it may be
classified under Doubtful category,
➢ If realizable value of the security as assessed by the Bank/approved valuers/ RBI, is less
than 10% of the outstanding in the borrowal accounts, the asset shall be straightaway
classified as Loss Asset.
• Advances against Bank’s own Term Deposits, NSCs, KVPs, IVPs, surrender value of
Life Insurance Policy etc.: Such accounts would not be classified as NPAs provided
adequate margin is available. However, advances granted against gold ornaments,
government securities and all other securities shall not be covered by this exemption.
• Agricultural advances: An account will turn non-performing when the instalment of principal
or interest thereon remains overdue for two crop seasons, for short duration crops, and one
crop season for long duration crops. These norms shall be applicable only to Farm Credit. In
regard to agricultural loans to other than the above category of borrowers or term loans given
to nonagriculturists, identification of NPAs will be done on the basis of 90 days delinquency
norm. In case of natural calamities impairing the repaying capacity of agricultural borrowers,
Bank may convert short term production loan into a term loan or reschedule the repayment
period subject to RBI guidelines issued from time to time in the matter. Such loan accounts
shall be treated as current dues and need not be classified as NPA and would be governed
by the revised terms and conditions. Thereafter, IRAC norms will apply to those accounts as
well.
• Government guaranteed accounts: Central Government guaranteed credit facilities may
be treated as NPA only when the Government repudiates its guarantee when invoked.
However, this exemption shall not be available for the purpose of recognition of income.
State Government guaranteed advances and investments in State Government guaranteed
securities would attract asset classification and provisioning norms if interest and / or
principal or any other amount due to the Bank remains overdue for more than 90 days.
• Project under implementation: For all project loans the ‘Date of Completion’ and the ‘Date
of Commencement of Commercial Operations’ (DCCO), of the project should be clearly spelt
out at the time of financial closure of the project. These should also be documented in the
Bank’s appraisal note during sanction of the loan. The asset categorization will depend on
the aging of delay in achieving Date of Commencement of Commercial Operations, sector,
reasons and nature of restructuring.

6. Provisioning Norms
• In case a bank fails to report SMA status of an account to CRILC or resorts to methods with
the intent to conceal the actual status of the account or evergreens the account, it will be
subjected to, inter alia, accelerated provisioning for that account. The normal provisioning
662
 requirement, and the accelerated provisioning in respect of such non-performing accounts
are as below:
Asset Period of Normal provisioning Accelerated
Classification NPA (%) provisioning (%)
Sub-Standard Up to 6 15 15
(Secured) months
6 months to 1 15 25
year
Up to 6 25
months (Other than infra 25
Loans)
Sub-Standard 20
(Unsecured ab (Infrastructure
initio) Loans)
Above 6 25
months (Other than infra 40
Loan)
20
(Infrastructure
Loans)
25 40
Doubtful I 2 nd Year (secured portion) (secured portion)
100 100
(unsecured portion) (unsecured
portion)
40
(secured portion) 100 both secured
Doubtful II 3rd & 4th 100 and unsecured
Year (unsecured portion) portion
Doubtful III 5th year 100 100
onwards
Loss Assets Ab Initio 100 100

• Provisioning in respect of Exposure to Willful Defaulters: The provisioning in respect

of existing loans/exposures of the Bank to companies having director/s (other than nominee
directors of government/financial institutions brought on board at the time of distress),
whose name/s appear more than once in the list of willful defaulters, will be (a) 5% in cases
of Standard accounts and (b) accelerated provision in case of NPA account.
• Provisioning in respect of fresh exposure to Non-cooperative borrowers: Any fresh
exposure to Non-Cooperative borrower will by implication entail greater risk necessitating
higher provisioning. Therefore, we have to make higher provisioning as applicable to
substandard assets in respect of new loans sanctioned to such borrowers as also new
loans sanctioned to any other company that has on its board of directors any of the whole
663
 time directors/promoters of a non-cooperative borrowing company or any firm in which such
a non-cooperative borrower is in charge of management of the affairs. However, for the
purpose of asset classification and income recognition, the new loans would be treated as
Standard assets.
• Valuation of security for provisioning purposes: With a view to bringing down
divergence arising out of difference in assessment of the value of security, in cases of NPAs
with balance of Rs. 5 crores and above, stock and receivable audit at annual intervals by
empanelled Stock and Receivable Auditors is to be got done in order to enhance the
reliability on stock valuation. Collaterals such as immovable properties charged in favour of
the Bank should be got valued once in three years by Bank’s empanelled valuers.
• Loss Assets: Generally, loss assets are to be taken off Balance Sheet and to be parked
in Advances Under Collection Account (AUCA). In case loss assets are permitted to remain
in the Bank’s books for any reason, a provision equivalent to the outstanding (100 percent
of outstanding) in the account shall be made.
• Standard assets: Bank shall make general provision for Standard assets at the following
rates for the funded outstanding on global loan portfolio basis:
➢ Farm Credit to agricultural activities and Small and Micro Enterprises (SMEs) sectors
at 0.25 per cent;
➢ Advances to Commercial Real Estate (CRE) Sector at 1.00 per cent;
➢ Advances to Commercial Real Estate – Residential Housing Sector (CRE-RH) at
0.75 per cent;
➢ All other loans and advances not included in (a) (b) and (c) above at 0.40 per cent.
➢ With regard to Foreign Offices, some of the local regulatory norms on provisioning
and NPAs are more stringent than RBI norms. Accordingly, these branches will
follow the stricter of the two regulatory norms (RBI/local) as applicable.

7. IRREGULARITY AND SPECIAL MENTION ACCOUNTS

The norms for classification of stressed assets shall now be based on the criterion of “default”
rather than irregularity. Default means non-payment of debt (in whole or in parts or instalments)
which has become due and is not repaid on due date. In Cash credit accounts, default means
outstanding balance remaining overdue continuously in excess of the sanctioned limit or drawing
power (whichever is lower) for more than 30 days. Stressed asset, immediately on default to be
categorized as Special Mention Accounts (SMAs), as below :

SMA Subcategories Basis for classification- Principal or interest

payment or any other amount wholly or partly
overdue between

SMA-0 1-30 days

SMA-1 31-60 days

SMA-2 61-90 days

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In case of revolving credit facilities like Cash Credit, the SMA sub categories will be as follows:-

SMA Subcategories SMA Subcategories

SMA-1 31-60 days

SMA-2 61-90 days

Central Repository of Information on Large Credits: Central Repository of Information on

Large Credits (CRILC) report is to be submitted monthly. Further, report of all defaulting
accounts (with aggregate exposure of Rs.5 crores and above) to be submitted to CRILC, on a
weekly basis. The new framework also mandates that, as soon as there is a default in the
borrower entity’s account with any lender, all lenders singly or jointly, shall initiate steps to
resolve the default within the review period of 30 days.

8. Corrective Action Plan (CAP):

The branches have to explore the under noted options to resolve the stress in the
account. The options under Corrective Action Plan (CAP) would generally include:
• Rectification- The operating unit/branch has to obtain a specific commitment from the
borrower to regularize the account so that the account comes out of SMA status or does not
slip into the NPA category. The commitment should be supported with identifiable cash flows
within the required time period and without involving any loss or sacrifice on the part of the
existing lenders. The branch may also consider providing need based additional finance to
the borrower, if required, as part of the rectification process.
• Restructuring - The operating unit/branch has to consider the possibility of restructuring the
account if it is prima facie viable and the borrower is not a Willful defaulter, i.e., there is no
siphoning off of funds, fraud or malfeasance, etc. At this stage, branch has to obtain
commitment from promoters for extending their personal guarantees along with their net
worth statement duly supported by copies of legal title to assets. Also a declaration to the
effect that they would not undertake any transaction that would alienate assets without the
permission of the Bank is to be taken. Any deviation from the commitment by the borrowers
affecting the security/ recoverability of the loans may be treated as a valid factor for initiating
recovery process.
• Recovery - Once the first two options i.e. (i) and (ii) above are seen as not feasible, due
recovery process may be resorted to. The operating unit/branch may decide the best
recovery process to be followed, among the various legal and other recovery options
available, with a view to optimizing the efforts and results.

9. Holding on Operations
The operating units have to ascertain the reasons for default in borrowal account and finalize
the remedial action in consultation with the borrowers. If the irregularity in the account is of
temporary nature and operating unit is prima facie viable, the first remedial action should be
put the account under holding on operation. The details about of Holding on Operation (HOO)
are as below:

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• Holding on operations would commence from the date branch identifies an SMA or a Sub-
standard account as ‘potentially viable’. (Such holding on operations (HOO) would not
require any Administrative Clearance / approval / sanction.)
• The reviewing authority of SMA account would take the report on commencement of holding
on operations on record and give necessary directions if warranted to the branch on the
proposed action plan.
• The holding on operations (HOO) would consist of freezing the bank’s exposure at the
sanctioned limit and allowing operations within such frozen limit.

10. Transfer to AUCA (Asset under collection account)

Loans / Advances accounts can be transferred to AUCA in the larger interest of the Bank.
However, such transfer of NPAs to AUCA should not in any way dilute the recovery efforts.
Transfer to AUCA should be affected only in respect of accounts lying in Recalled Assets
Account or after transfer to Recalled Assets Account.

• General Guidelines for transfer to AUCA

Transfer to AUCA may be considered in the following cases by the competent authorities as per
Scheme of Delegation of Financial Powers: Advances and Matters Allied to Advances as
updated from time to time:

a. Accounts classified as Doubtful & Loss Assets & lying in Recalled Assets accounts.
b. Where recovery applications have been filed before the DRT or suits filed before the court.
c. Where action u/s 13(4) of SARFAESI Act 2002 has been initiated.
d. Accounts in which legal action (i.e., filing of suit in a court of law / DRT or issuing notice under
SARFAESI ACT (2002)) has been initiated or expressly waived by the competent authority.
e. Where permission for initiation of legal action has been accorded and legal action is in the
process of being initiated. Proposals for transfer to AUCA before filing of suit can be put up
only with prior approval from CGM (Circle) / (CAG)/ (CCG) / (SARG) where approval for
initiation of legal action has been accorded and legal action is in the process of being
initiated. While giving such approval, the concerned CGMs will need to examine the reasons
for delay in taking legal action and also stipulate the time period for filing of suits after
Transfer to AUCA. However, transfer to AUCA will not be permitted without transferring the
account to recalled assets account.
f. Adequate provision is available.
g. Transfer to AUCA, generally, should not be done in cases of priority sector lending, except
in case of compromise settlement, sale to ARC.
h. Account undergoing CIRP under IBC (Insolvency and Bankruptcy Code) or resolution under
ICA (Inter-Creditor Agreement) framework may be considered for transfer to AUCA.
However, before transfer, the operating functionary/dealing officer must keep in view the
following:
o Whether borrower is a MSME account where promoters are eligible to submit resolution
plan as Resolution Applicants.
o Whether Account is considered feasible and viable by CoC (Committee of Creditors)
where chances of getting a resolution plan under CIRP is high and whether the existing
promoters are eligible to give a resolution plan.

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 o Whether it is an Account where resolution is being considered under ICA arrangement
with change of management. In such cases, partial transfer may be carried out depending
on the amount of resolution plan received/expected to be received.
o However, post approval of resolution plan, the amount of haircut / loss suffered under an
approved resolution plan can be considered for partial transfer to AUCA.

For accounts where liquidation has been recommended or approved by CoC or where
liquidation has been ordered by NCLT (National Company Law Tribunal), total or partial transfer
to AUCA may be considered.

i. Technical Transfer of NPAs to AUCA - Some accounts in doubtful/loss category, which are
either fully or substantially provided for, are identified generally at the end of a quarter and
entry for the consolidated amount is passed at the Corporate Centre after obtaining approval
from the appropriate authority.

• Fraud Cases
Advances involving fraud / vigilance angle / on-going CBI / police enquiry may be
transferred to AUCA by the competent authority and no administrative clearance will be
required before putting up the proposals for Transfer to AUCA before the competent
committees. Powers for transfer to AUCA of advances involving frauds will be as per
Scheme of Delegation of Financial Powers: Advances and Matters Allied to Advances
as updated from time to time. However, civil / criminal cases and recovery proceedings
will be followed up.

• Partial transfer to AUCA

➢ Partial transfer to AUCA may be permitted in respect of Doubtful Asset accounts in D1
and D2 categories to the extent of available provision.
➢ Partial transfer to AUCA may be permitted only in respect of accounts falling within the
discretionary powers of CCSC/ SARCC-I and above to restrict partial transfer to AUCA of
large value accounts.
➢ Partial transfer to AUCA is to be approved by an authority who has powers to transfer the
full amount to AUCA. Any further transfer to AUCA in the same account would also be
required to be approved by the same authority.

• Precautions for Transfer to AUCA

While effecting transfer to AUCA, the branches should take the under noted precautions:

➢ All possible steps to recover the dues have been taken and will be continued for recovering
the debt and that transfer to AUCA is in the larger interest of the Bank.
➢ Prior sanction for transfer to AUCA must be obtained from the appropriate authority in the
usual manner by submitting the proposal in the prescribed format.
➢ All proposals of transfer to AUCA should be screened by an internal committee of the
Bank, as per extant instructions, prior to approval by the appropriate authority.
➢ Staff accountability examination status has to be indicated in the proposals put up for
transfer to AUCA.
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 ➢ Transfer to AUCA should be effected only in respect of accounts lying in Recalled Assets
Account.
➢ Prior approval of ECGC Ltd., is required for write off in full of the insured accounts.
Besides, Bank is under an obligation to furnish full details of written off Export Credit
accounts, as and when sought by ECGC Ltd and in any case once in a year while seeking
renewal of the insurance cover.
➢ Also, care should be taken to ensure that the balances in the claim amounts received from
ECGC / CGTMSE etc. for the relative accounts are first appropriated and the net balance
thereafter only is debited to LHO / Business Groups for eventual transfer to Central
Accounts Office. Terms and conditions of settlement of ECGC / CGTMSE etc. should also
be complied with.
➢ In respect of partial transfer to AUCA also which are effected as part of compromise
proposals, specific approval for transfer to Recalled Assets Account should be obtained
as part of branch recommendations, so that actual transfer to AUCA is invariably routed
through Recalled Assets account.

• Authority Structure for transfer to AUCA

While processing proposals for transfer to AUCA, the branches and their controllers should
scrupulously ensure that:

➢ The authority approving the proposal for transfer to AUCA did not sanction the advance
in question in his individual capacity.
➢ Proposals for transfer to AUCA should be sanctioned only by the competent authority as
per the Bank’s Scheme of Delegation of Powers: Advances and Matters Allied to
Advances updated from time to time. The amount of net loss / total Dues will be the criteria
to decide the competent authority. The calculation of Total Dues / Net Loss is to be done
as below:
Principal Amount (Outstanding in the accounts of borrowers) + Notional interest i.e. interest
accrued but not debited to the loan account up to the last date of the month in which the proposal
is submitted by the branch + Expenses incurred but not debited to the accounts.

• Review of AUCA
Accounts transferred to AUCA will have to be reviewed from time to time to watch the
progress of recovery in such accounts and desirability of further continuation of an account
in the AUCA. The review exercise will be conducted by various review committees
constituted for the purpose as per instructions issued from time to time. If a member had
directly handled a particular account either at the stage of appraisal / assessment /
recommendation / sanction or followup / supervision / monitoring / rehabilitation / recovery,
he / she should be kept out of the committee at the time of decision being taken to reverse
the AUCA entry. However, the official need not be excluded when review of the account is
undertaken.

• Removal of entry from AUCA

➢ Removal of entry from AUCA may be considered after 2 years of parking in AUCA if no
recovery is forthcoming. The proposal for removal of entry from AUCA submitted to the

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 competent authority must contain at least four immediately preceding review reports on the
account.
➢ The final reversal may be permitted in AUCA accounts before the two year period, in cases
of decreed accounts, where decree awarded is more than 3 years old and no recovery could
be made during that period as well as the cases where recovery during this period has been
only due to :
o sale of all assets through auction or through Court Receiver, ii sale of all assets by Official
Liquidator in winding up cases within that period, and
o no future recovery is possible after such sale of all assets and where under noted
conditions are satisfied:
a. No primary / collateral security available.
b. No personal guarantee available or borrowers / guarantors not traceable. (Efforts
have been made to trace the borrowers / guarantors and their assets, if any,
including that through Detective agency).

➢ The final reversal of AUCA accounts before two years period, in case of accounts where
Revenue Recovery Certificate (RRC) is issued / Revenue Recovery (RR) action is in process
may also be considered for implementation subject to the following:
i. RRC issued is more than 3 years old

ii. No primary / collateral security available

iii. No personal guarantee available or borrowers / guarantors not traceable

iv. No recovery is forthcoming
v. Revenue recovery to continue even after reversal of AUCA.
➢ Partial removal may also be permitted where Compromise Settlement has been approved
by Bank, accepted by the borrower and repayment commenced as per agreed terms. The
partial removal to be permitted to the extent of balance in AUCA over and above the amount
of Compromise Settlement.
➢ Partial removal may also be permitted in those accounts secured by Government guarantee,
where primary / collateral security is Nil. The amount to be removed from the AUCA should
be the outstanding in excess of value of government guarantee.
➢ Partial reversal of AUCA outstanding should be done to the extent of actual recovery made
in the AUCA account. The reversal of AUCA to the extent of actual recovery made in the
AUCA account can be permitted at the branches / operating units / SARBs / SAMBs for which
no approval is required from any authority.
➢ Further, the balance amount in AUCA left after credit of sale proceeds received from sale of
stressed assets to ARCs or other Banks etc. will also be removed from AUCA after ensuring
that no further recovery is possible in the account.

11. RECOVERY THROUGH LEGAL ACTION

SARFAESI

• Recovery through enforcement of rights under the SARFAESI Act 2002

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 ➢ Meaning of ‘Security Interest’: ‘Security Interest’ means right, title or interest of any kind
upon property created in favour of any secured creditor and includes-
a. Any mortgage, charge, hypothecation, assignment or any right, title or interest of any
kind, on tangible asset, retained by the secured creditor as an owner of the property,
given on hire or financial lease or conditional sale or under any other contract which
secures the obligation to pay an unpaid portion of the purchase price of the asset or
an obligation incurred or credit provided to enable the borrower to acquire the tangible
asset; or
b. Such right, title or interest in any intangible asset or assignment or license of such
intangible asset which secures the obligation to pay any unpaid portion of the
purchase price of the intangible asset or the obligation incurred, or any credit provided
to enable the borrower to acquire the intangible asset or license of intangible asset.

➢ Eligibility: The SARFAESI act 2002 came handy for banks to accelerate the recovery
process. The act empowers the Banks to enforce security interest without the intervention
of a court/tribunal in accordance with provisions of Act. Action under SARFAESI Act, 2002
can be initiated in the following cases:
a. The account should be an NPA as per RBI guidelines.
b. The claim amount (including accrued interest) should be for an amount not less than
Rs.1.00 lac. iii. The amount due (including interest) should be more than 20% of the
principal amount and interest thereon.
c. Debt is not time barred under Limitation Act.

➢ Exclusions from Security Interest: Seven specific cases are exempt and excluded from
SARFAESI Act:
a. Lien on any goods, money or security given by or under the Indian Contract Act, 1872 or the
Sale of Goods Act, 1930 or any other law for the time being in force.
b. A pledge of movables within the meaning of section 172 of the Indian Contract Act, 1872
c. Creation of any security in any aircraft as defined in section 2(1) of the Aircraft Act, 1934.
d. Creation of security interest in any vessel as defined in section 3(35) of the Merchant
Shipping Act, 1958.
e. Any right of unpaid seller under section 47 of Sale of Goods Act, 1930
f. Any properties not liable to attachment or sale excluding the properties specifically charged
with the debt recoverable under Securitisation Act or sale under first proviso to section 60(1)
of Code of Civil Procedures, 1908
g. Any security interest created in agricultural land.

➢ Authority for Issue of SARFAESI Notices by Our Bank: As per the Security Interest
(Enforcement) Rules, 2002 ‘Authorized officer’ means an officer not less than a Chief
Manager of a public sector bank or equivalent. Where such officers are posted at
Administrative Offices, they may act as Authorized officer for any of the branches under the
control of the Administrative Office, as decided by the branch’s controller. Where such
officers are heads of Branches (i.e. Branch Managers), they will be the Authorized officer
for the Branch concerned and, if decided by the Branch’s controller, may also act as
Authorized officer for the neighbouring Branches, in cases where the head of such
neighbouring Branch is an officer of MMG III and below grade.

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Accordingly, if branches headed by officers of MMG III and below have NPAs which fulfill the
criteria for enforcement of security rights under the Act, the branch’s controller may identify an
officer of SMG IV and above within the Region (i.e. in Branches or in the Administrative Office)
and advise the officer and the Branch concerned in writing. The identified officer will perform all
the duties and responsibilities of the Authorized officer in respect of all the identified NPA
accounts.

➢ Issue of Notice under Section 13(2) of SARFAESI Act

a. Once an account is identified and satisfies the criteria for action under the Act,
Secured creditor can initiate action for enforcement of security interest by issuing
demand notice u/s 13(2) of the act.
b. Demand notice u/s 13(2) shall be issued by Authorised Officer in writing to the
Borrower(s)/Guarantor(s)/Mortgagor(s) and legal heir(s) if applicable, giving the
Borrower(s) / Guarantor(s) / Mortgagor(s) time of 60 days to discharge the liabilities.
c. Demand notice u/s 13(2) should contain following:
i. Amount payable by the Borrower(s) (such as account wise outstanding balance,
interest accrued but not debited calculated on compounded basis at stipulated rests,
aggregate principal amount, overdue interest, other charges if any etc.) and the
secured assets to be enforced. Interest calculation to be done correctly as per
contracted rate of interest. It should be specified that future interest will also be
payable till date of repayment.

ii. Particulars of loan documents executed by the Borrower(s) i.e. Term loan
agreement, cash credit agreement, supplementary documents and revival letters,
balance confirmation letters, deposit of title deeds confirmation letter etc.

In case, 13(2) demand notice is issued against both mortgaged and hypothecated
properties, then these details should be provided in the notice.

The date on which the account was classified as Non-Performing Asset (NPA) should
be correctly mentioned in the 13(2) notice.

➢ Service of demand notice under section 13(2) of the act

a. Service of Demand Notice under Sec.13(2) shall be made by delivering (including
hand delivery) or transmitting at the place where the borrower or his agent
empowered to accept the notice or documents on behalf of the Borrower(s), actually
and voluntarily resides or carries on business or personally works for gain, by
Registered Post with Acknowledgment Due addressed to the Borrower or his Agent
empowered to accept the service or by Speed Post or by Courier or any means of
transmission of documents like fax message or electronic mail service.
Acknowledgment card received should be kept on record carefully to be used as
evidence when required.
b. If the Authorised officer has reason to believe that the borrower or his agent is
avoiding the service of notice or for any other reason, the service cannot be made as

671
 aforesaid, the service shall be effected by affixing a copy of the demand notice on
the outer door or some other conspicuous part of the house or building in which the
borrower or his agent resides or carries on business or personally works for gain and
also by publishing the contents of the demand notice in two leading newspapers may
also be published in two leading newspapers, one in State’s official language, having
sufficient circulation in that locality.
c. When the borrower is a body corporate, the demand notice shall be served on the
registered office or any of the branches of such body corporate.
d. Where there is more than one borrower, the demand notice shall be served on each
borrower.

➢ Reply to Representation (if any) of the Borrower u/s 13(3A) of the Act:
a. If the borrower makes a representation or raises an object within 60 days of receipt of
notice u/s 13(2) of the SARFAESI Act, the Authorized Officer shall consider such
representation or objection carefully and examine whether the same is acceptable or
tenable.
b. If on examining the representation or objection raised, the authorised officer comes to
the conclusion that there is a need to make any changes or modifications in the demand
notice, he shall modify the notice accordingly and serve a revised notice or pass such
other suitable orders as deemed necessary, within 15 days from the date of receipt of
representation or objection.
c. If on examining the representation or objection, the Authorised Officer comes to the
conclusion that such representation or objection is not acceptable or tenable, he shall
communicate, within 15 days of receipt of such representation or objection, the reasons
for nonacceptance of the same.

➢ Action u/s 13(4) of the Act:

If the amount mentioned in the demand notice u/s 13(2) is not paid within the stipulated 60
days after receipt of notice, secured creditor may take recourse to one or more of the
following measures to recover debt, U/s 13(4) namely:

a. take possession of the secured asset including the right to transfer by way of lease,
assignment or sale for realising the secured asset.
b. take over the management of the business of the borrower including the right to transfer
by way of lease, assignment or sale for realising the secured asset.
c. appoint any manager to manage the secured assets, whose possession has been taken
over by secured creditor.
d. send a notice in writing to any person(s), who has acquired any of the secured assets
from the borrower and from whom any money is due or may become due to the borrower,
to pay the secured creditor, so much of the money as is sufficient to pay the secured
debt.

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 ➢ Authorised Officer shall proceed to realize the amount by taking possession of
property as below:
i. Immovable Property :

o The Authorised Officer shall take possession of such property in the presence of two
independent witnesses by delivering a possession notice to the Borrower(s) /
Guarantor(s) / Mortgagor(s) and shall affix the possession notice under section 13(4) of
the Act on the outer door or at such conspicuous place of the property, take photograph
thereof and keep the same on record.
o Notice regarding possession of the immovable property with full details of the property
and name of Borrower(s)/Guarantor(s)/Mortgagor(s) should be published within 7 days
of taking possession in two leading news papers, f which one should be in State’s official
language having sufficient circulation in that locality.
ii. Movable Property:

o Where the possession of the movable property in possession of the Borrower(s) is to

be taken by the Bank, the Authorized Officer shall take possession of such movable
property in the presence of two independent witnesses after Panchnama drawn and
duly signed by the witnesses.
o If any problem is foreseen in taking the possession, the Authorized Officer should
approach CMM/DM for obtaining order u/s 14 of the Act. Authorized Officer may utilise
services of approved Resolution Agent, if necessary.
o When DM / CMM / CJM order is obtained, Authorized Officer should initiate action for
obtaining police protection by approaching the local police authority.
o After taking possession, the Authorised Officer should prepare an inventory of the
property and deliver a copy of such inventory to the
Borrower(s)/Guarantor(s)/Mortgagor(s) or any person authorised to receive on their
behalf.
o Authorised Officer shall also intimate the borrower by a notice, which should be served
to borrower in the manner similar to service of demand notice u/s 13(2) of the act,
enclosing the panchanama drawn and inventory made.
o Authorised Officer shall keep the property, whose possession has been taken as
above, under his custody or in the custody of any person/agency authorised or
appointed by him (Security agencies empanelled by the Bank), if required.
o While taking possession of the property, if there are movables not charged to the
Bank, separate inventory for movables not charged to Bank has to be prepared and
a copy of the same is to be delivered to the Borrower(s). The Borrower(s) should be
called upon by notice to remove the said goods forthwith and made clear that the
Bank shall not be responsible for any loss or damage to the said goods nor shall
Authorised Officer get the said goods insured.
o The Authorized Officer would lock the property and put Bank's seal on the lock in the
presence of two independent witnesses, take photograph of the same and keep the
same on branch record to be used as evidence in case of need.
o A suitably worded notice regarding possession should be painted on conspicuous part
of the property. The notice should contain advisory to the public in general not to deal
with or trespass the property.

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 o The property under possession should be kept in the custody of the Authorised Officer
or in the custody of any person
authorised or appointed by him. The Authorised Officer or his custodian should take
as much care of the property as a man of ordinary prudence would, under similar
circumstances take of his own property. The attached property should be inspected
regularly and adequately insured till it is sold or otherwise disposed of.
o Wherever the securities taken possession are covered by insurance, the fact of
possession of the security and present location and address, etc. is to be informed to
the concerned insurance company immediately.
➢ Provision When Joint Financing is Involved
i. In case of joint financing, demand notice u/s 13(2) can be issued by a secured creditor
in its individual capacity.

ii. However, an individual secured creditor cannot take any action contemplated u/s 13(4)
of the act, unless exercise of such right is agreed upon by secured creditors representing
at least 60% of the amount outstanding on the record date.

Record date means the date agreed upon by the secured creditors representing not less
than 60% in value of amount outstanding on such date. iii. If 60% of creditors agreed to
the action, the decision will be binding on all remaining secured creditors.

➢ Post Possession process and Sale of property through e-auction.

a. Valuation of the Movable and Immovable Assets :

i. The Authorised Officer should arrange for valuation of the assets by an approved valuer
immediately after taking possession and in any case before sale. Valuation Report should
be less than 12 months old for fixing Reserve Price. Two valuation reports to be obtained
for properties valued above Rs.1.00 crore.

ii. The branch should always use services of empanelled SARFAESI valuer for taking
Valuation Report for fixing Reserve Price.

iii. The Branch Head / Authorised Official should satisfy himself with the valuation given
by the valuer before recommending Reserve Price.

b. Fixation of Reserve Price:

i. Reserve Price of the assets to be sold should be determined on the basis of valuation
report obtained. Sanction for Reserve Price has to be obtained from the appropriate
Committee at RBO / AO / Local Head Office / Corporate Centre. The following points are
to be considered for fixation of Reserve Price of movable/immovable assets:

ii. The following points are to be considered for fixation of Reserve Price of
movable/immovable assets:

iii. It should be ensured that the valuation report is less than 12 months old based on
which the Reserve Price is proposed to be approved. iii. Valuation reports should be
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 obtained from two empanelled SARFAESI valuers in case of securities having value of
Rs. 1.00 crore and above and higher of the two valuations shall be taken into account for
fixing the Reserve Price.

iv. No sale should be finalized below the Reserve Price. In case, it is found that the
Reserve Price cannot be realized, the Authorised Officer may submit fresh
recommendations to the committee for a lower Reserve Price, and property may be put
up for sale again following the same procedure.

Sale Procedure for Movable/ Immovable assets (Rule 6(1) for movable secured
assets and Rule 8(5) for immovable secured assets)

The authorised officer may sell the secured assets, whose possession has been taken,
in one or more lots by adopting any of the following methods to secure maximum sale
price for the assets to be sold:

Obtaining quotations from parties dealing in the secured assets or otherwise interested
in buying such assets

a. Inviting tenders from the public

b. Holding public auction including through e-auction
c. By private treaty

Sale through e-auction

i. Agency, which are empanelled with the Bank, to be identified for conducting e- auction.

The Borrower(s) / Mortgagor(s) / Guarantor(s) should be served notice for sale of movable
[under rule 6(2)] and immovable [under rule 8(6)] secured assets. In case of death of
Borrower(s)/Guarantor(s), the sale notice should be addressed to legal heirs of borrower(s)/
mortgagor(s)/ guarantor(s).

ii. The notice of sale should contain the notice for public auction, which is to be published in two
leading newspapers, one in State’s official language having sufficient circulation in the locality
with description of the property, along with measurement of land and construction area,
encumbrances known to the secured creditor, debt amount, reserve price, earnest deposit
amount (10% of the Reserve Price) and opening/closing time of e-Auction and any other thing
which the Authorized Officer considers material for a purchaser.

iii. The notice for sale should clearly state that if the amount of dues of the borrower to the Bank
are not tendered by the borrower by date of publication of notice for public auction in the two
leading newspapers (one in State’s official language), then the Bank shall proceed to sell the
secured assets through e- auction. (Sec 13(8) of the act).

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iv. The notice for sale should be served, affixed on conspicuous part of the property at least 30
days before the conduct of e-auction. Also notice for public auction should also be published at
least 30 days before the conduct of e- auction.

v. In case the sale of property by any of the methods mentioned in Rule 6(1) for movable assets
and Rule 8(5) for immovable assets fails, and sale is required to be conducted again, then the
authorised officer should serve, affix the notice for sale at least 15 days before the conduct of
e-auction and also publish the notice for public auction at least 15 days before the conduct of e-
auction.

vi. Immediately after the completion of auction, the sale should be confirmed in favour of highest
bidder. The highest bidder should pay an amount equal to 25% (including EMD amount) of sale
price on the same day or not later than next day of auction, as the case may be.The balance
amount shall be paid on or before 15th day from the confirmation of sale. However, the payment
period of remaining amount may be extended, as agreed by the secured creditor and the highest
bidder in writing, by a period not exceeding 3 months from the sale confirmation date.

Sale through Private Treaty

i. In respect of sale of immovable secured assets through private treaty, it should be resorted
only when the other more transparent methods of obtaining quotations/ inviting tenders or public
auction etc., have not been successful. Bank can sell the properties, which is not sold through
Public Auction, by way of private treaty on the terms as may be settled between the secured
creditors and the proposed purchaser.

ii. Minimum number of attempts prescribed for sale by public auction by the Bank, before
resorting to sale by private treaty with threshold limits as under:

Value of Property No. of Attempts *

Upto Rs. 1 Cr One

Above Rs. 1 Cr Two

*However, even after revised reserve price has been approved by the appropriate authority, sale
through private treaty can be entered only after conducting one more auction at the revised
reserve price.

iii. The Notice to the Borrower should clearly mention the details pertaining to the price at which
the Bank is proposing to sell the property.

iv. The copies of the Newspaper Publications and Sale Notice sent to the borrower on earlier
failed auction sale of the property should be preserved and kept along with the Sale Notice under
Private treaty for the Bank’s Records.

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v. As per Rule 8(8) of the Security Interest (Enforcement) Rules 2002, sale by any method other
than by public auction or public tender shall be on such terms as may be settled between the
secured creditor and the proposed purchaser in writing.

It is mandatory that the sale consideration offered by the proposed purchaser to whom the
property is to be sold by private treaty should be higher than the reserve price fixed by the
Authorised Officer in the last failed public auction. Ideally, if the borrower is cooperative, he may
also join as party to the private treaty, though it is not mandatory.

vi. When the Bank decides to sell the immovable secured assets through private treaty after
failure of sale under public auction, notice of not less than 15 days to the borrower before
the date of sale through private treaty is mandatory.
vii. Sale certificate can be issued to the purchaser on receipt of the full sale consideration. In
case, sale deed is executed, the sale deed shall form part of the sale certificate as an
annexure.
Sale Procedure for Movable/ Immovable Property through Private Treaty:

i. Where the e-Auction of the immovable secured asset(s) failed in the number of attempts as
prescribed above, the Authorised Officer shall make endeavors in identifying a purchaser for the
property through private treaty through all available sources. A notice mentioning all the details
of the assets should be displayed in the website of the Bank about the sale of the secured
asset(s) besides displaying in the notice board of the Branch premises informing the public that
the property is available for sale through Private Treaty and requesting the interested parties to
contact the Authorised Officer concerned.

ii. If any person comes forward to purchase the property for an amount not less than the reserve
price fixed in the last failed e-auction, the Authorized Officer shall issue a notice to the borrower
for his information. In case of failure of the borrower to pay the entire outstanding dues, the
property can be sold to the prospective buyer through private treaty. The detailed procedure for
sale through private treaty is as under.

iii. A simple notice that the property is available for sale is to be uploaded by the concerned
branch on Bank’s website and also to be displayed in the branch premises. Branch may also
give publicity on the availability of such property by contacting interested parties/customers, if
any.

iv. If any person has shown interest in purchasing the property, he should submit an application
to the Authorised Officer along with the following documents:

a. Board Resolution authorizing the officials of the company to participate in sale by Private
Treaty in case of Limited Company
b. Election ID/Electricity Bill/Passport/Bank Account Statement/ Any other valid and
acceptable document showing the address (As address proof)
c. PAN Card (Mandatory)
d. Phone/Mobile Number /email ID
e. Details of application money (10% of sale amount)

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 v. Branches need to complete the verification of KYC Papers and make sure that the
documents are in order.

vi. The Authorised Officer shall issue notice to the Borrower(s)/ Guarantor(s)/ Mortgagor(s)
for sale of properties through Private Treaty informing him that in case of his failure to pay
the outstanding dues, the property shall be sold at a price offered by the proposed buyer.
The notice should also be affixed in the conspicuous part of the immovable property and
publish in two leading newspaper, one in State’s official language having sufficient circulation
in the locality.

vii. On expiry of 15 days from the date of notice mentioned above, the Authorised Officer
shall issue a letter of offer to sell the secured asset(s) the prospective buyer specifying the
terms and conditions of the sale through Private Treaty.

viii. Upon agreeing to the terms and conditions of sale of the property, the proposed
purchaser shall submit a letter accepting the offer for purchase of property through private
treaty in the format provided along with duly signed copy of the duplicate of the letter
issued by Authorised Officer.
ix. On payment of 25% of the sale price, the Authorised Officer shall issue a sale
confirmation advice.
x. On confirmation of sale by the secured creditor and compliance of the terms of payment,
the Authorized Officer shall issue a Certificate of Sale for the properties in favour of the
purchaser. The Authorized Officer should also obtain receipt of possession and original
Title deeds.
xi. The authorized officer shall ensure registration of Sale Certificate on making payment as
per applicable stamp Act, and charges as applicable in the respective State, cost of which
will be borne by the purchaser.
As per Section 194 IA of the Income Tax Act, 1961, if the Sale Price of the Immovable
Property is Rs.50,00,000/- (Rupees Fifty Lacs only) and above, then the purchaser has
to deduct 1% of the Sale Price as TDS in the name of the owner of the said property &
remit it to Income Tax Department as per section 194 IA of Income Tax Act and only 99%
of the Sale Price has to be remitted to the Bank. The Sale Certificate will be issued only
on receipt of Form 26QB & Challan for having remitted the TDS.

To facilitate the purchaser to deduct TDS @ 1% of the Sale Price and furnish Form 26QB
& Challan as per Para 4.2 (x) above, the Authorised Officer should furnish PAN of the
owner of the property to the purchaser. As per the provisions of Section 206AA of the
Income Tax Act, 1961, in the absence of PAN of the deductee (owner of the property),
the purchaser would be required deduct TDS at the higher rate prescribed under the said
Section.

All the procedures detailed above for the sale of immovable secured assets by private
treaty shall apply mutatis-mutandis to sale of movable secured assets by Private Treaty
under SARFAESI Act, 2002.

➢ Recovery of Balance Dues, if any: Where the Bank’s dues are not fully satisfied with the
sale proceeds of the secured assets, the Branch should file an application with the DRT or
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 a competent Court, as the case may be, for recovery of balance amount from the borrower
as per the standardized format.

➢ Resolution Agencies(RAs): Services of Resolution Agencies (EAs) may be engaged by

the authorised officer, where warranted for assisting them in enforcing security rights under
the Act (i.e. taking possession of the assets, maintenance and eventual sale).

Recovery of Bank’s dues through Debt Recovery Tribunal (DRT)

The Bank keeps on strengthening the standards of credit appraisal, documentation,

disbursement, supervision, follow up and monitoring in respect of all types of advances on a
continuous basis. Further, the branches also endeavour to ensure strict compliance with the
terms and conditions of sanction of credit facilities and are always alert to prevent slippages of
accounts into NPAs. However, some accounts become NPA despite their best efforts. The
Branches are required to file Original Application for recovery of Bank’s dues before Debt
Recovery Tribunal in cases where total debt due from the borrower is Rs.20.00 lakh and above
and have not been able to recover Bank’s dues even after taking all other possible actions
including restructuring of facilities and action under SARFAESI Act etc.

1. Jurisdiction: Two type of jurisdiction

a. Pecuniary jurisdiction: Original Application (O.A.) in DRT is to be filed where the total
amount of debt due to the Bank is Rs. 20.00 lakh and above.
b. Territorial jurisdiction: Branches should make an application to the Tribunal within whose
local limits of jurisdiction, the branch of the bank is maintaining the account in which debt
claimed is outstanding, or the cause of action wholly or partly arises i.e. the defendant or
each of the defendants, where there are more than one, at the time of making application
actually or voluntarily resides or carries on business or personally works for gain.
• Verification of enforceability of documents
a. Documents should not be time barred.
b. Bank’s empanelled Advocate should also verify the enforceability of documents including
those related to creation of Equitable Mortgage.
• Physical Verification of security: Properties held as Security should be physically verified
by the Branch Officials
• Contact details: Branch officials to update the addresses and other contact details of
borrowers / guarantors.
• Death of Borrower(s)/Guarantor(s): In case of death of Borrower(s) / Guarantor(s), Branch
officials to identify the legal heirs of the deceased to implead or make them party in OA.
• Service of call up notice: Call up notice is to be served on the Borrower(s)/Guarantor(s)
through Bank’s empanelled Advocate demanding payment of the Bank’s dues within 30
days. The call up notice should also contain Bank’s intention to realize the dues by sale of
securities and / or filing of Original Application (O.A.) for recovery of the shortfall, if any.

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• Transfer of outstanding to Recalled Assets Account (RAA): The outstanding in
borrower’s various accounts have to be transferred to Recalled Assets account after
obtaining approval from the Appropriate authority as per the Scheme of Delegation of
Financial Powers in force which is revised time to time.
• Timeline for filling of OA:
a. Original Application (OA) is to be filed in DRT immediately on approval but in any case
within a maximum period of 3 months from the date of approval.
b. Where documents are getting time barred, Original Application (OA) in DRT is to be filed
2 months before expiry of documents.

2. Procedure for filing of Original Application (OA) in DRT:

• Preparation of Original Application (OA) :

a. An Original Application in the prescribed format (Annexure-I) is to be drafted by the
Bank’s empaneled Advocate based on the facts/figures/documents provided by the
branch within 7 days from the date of handing over the facts/figures/documents.
Photocopies of the documents/papers are to be given to the Bank’s empaneled
Advocate for preparation of the Original Application.
b. Proceedings of the Tribunal are in English or Hindi. In case any reference, application,
representation, documents or other matters is made in any language other than
English or Hindi, it shall be accompanied by English or Hindi translation.
c. Facts/figures/documents and addresses of the defendants [(Borrower(s)/
Guarantor(s)] mentioned in the application should be correct and all relevant material
to strengthen the Bank’s case has to be included and specific reliefs have to be
claimed in respect of the relevant securities available to the Bank, including legal
costs.
d. OA must highlight all the events/incidents where Bank supported the borrowers with
timely help/overdrawing/ad hoc limits etc. Similarly all events/ incidents where the
borrowers made false promises or did not keep their word should also be highlighted
to prove non-reliability of the borrowers.

• Interim Reliefs which can be prayed in Original Application: In the Original

Application, following interim reliefs can be prayed, supported by the Affidavit,
incorporating the appropriate reasons for these: -
a. Seeking injunction restraining the defendants from transferring, alienating or dealing
with their movable and immoveable assets in any manner without prior permission of
the Hon’ble Tribunal.
b. Attachment Before Judgment (ABJ) of assets in the name of Borrowers / Guarantors.
c. Sale before judgment in case assets charged are of perishable nature & the value of
the assets is going to diminish.
d. Seeking direction to the defendants for filing statement of assets on oath by them.
e. Impounding of Passports where Branch officials fear that Borrower(s) / Guarantor(s)
may proceed abroad.
f. Seeking direction to the defendants not to leave the country without permission of
Hon’ble Tribunal.
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 g. Issuance of Partial Recovery Certificate based on the admission of debt by the
Borrower (s)/Guarantor (s) on the basis of latest Audited Balance Sheet or any other
written communication to the Bank.
• Vetting of Original Application (OA) by the Bank’s Law Officer: Original Application
(OA) prepared by the Bank’s empanelled Advocate is to be vetted by the Bank’s Law
Officer and any suggested modifications are to be carried out. However, facts and figures
contained in the draft plaint are to be verified by the Branch official concerned.
• Enclosures with the Original Application: The Original Application (OA) is to be filed
in DRT along-with the following documents:
a. Loan application forms signed by the Borrower(s) & Guarantor(s).
b. Sanction Letter / Arrangement Letter.
c. Board Resolution in case of Companies.
d. Letter of partnership/partnership deed in case of partnership firm.
e. All the security documents executed by the Borrower(s) and the Guarantor(s) namely
the loan agreements, security creating documents and guarantee agreements.
f. Prescribed formats to be filed before the ROC in case of company advances.
g. Memorandum of deposit of title deeds.
h. Letter of confirmation of deposit of Title Deeds in case of Equitable Mortgage or
Mortgage Deed in case of Registered Mortgage.
i. Board resolution for availing enhanced facilities.
j. Sanction letter / Arrangement Letter for enhancement.
k. Security documents obtained for enhancement of limits/facilities (Supplemental
documents).
l. Letter of confirmation for extension of Mortgage.
m. Consortium and is to be vetted by the Bank’s Law Officer before filing of Original
Application (OA) by the Leader of the Consortium.

3. After filing of Original Application in DRT:

• Registration of Original Application in DRT:
a. On receipt of the Original Application (OA) at DRT, Registrar of the DRT will scrutinize
and if found in order, it will be registered and given a Serial Number.
b. If any defect in the Original Application (OA) is brought to the notice of the Branch by
the Registrar of the DRT, it is to be rectified immediately.
c. Immediately after filing of OA in DRT, the particulars thereof are to be uploaded in the
Litigation Management System (LMS@LITMAS) online portal (SAMG Branches) and
the outcome of the subsequent hearings are also to be updated therein on an ongoing
basis.
d. Other Branches where the facility of LITMAS is not available have to maintain a manual
Suit Monitoring Register. The outcome of each hearing has to be recorded on an
ongoing basis in the Suit Monitoring Register by the officials concerned and to be put
up to the Branch Head for information.
e. Branch should initiate efforts to locate assets of Borrower(s) /Guarantor(s) by
i. Personal contacts with friends / relatives / business associates / dealers / suppliers of
Borrower(s) / Guarantor(s).

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 ii. Going through account statements where lump sum payments might have been
made.

iii. Engaging Detective Agencies

iv. Writing to banks in the city so that current accounts / fixed deposits, if any, maintained
with them can be unearthed.

• Issuance and Service of Summons by DRT:

a. On receipt of the application, the DRT shall issue summons requiring the Defendant (s)
to show cause, within 30 days, of the service of the summons as to why the reliefs
prayed for in the Original Application (OA) should not be granted.
b. Registrar of DRT will send Summons by Registered Post and if it is undelivered twice,
service of Summons can also be made by publication in newspaper having wide
circulation after obtaining approval from the Controller (There is a practice in some
DRTs that the Summons are handed over to empanelled Advocates of the Bank for
service to the defendants. In such cases, branch to ensure that it is dispatched either
by the empanelled Advocate or by branch itself within 3 days of receipt of summons
from the DRT). This should be ensured and monitored by the branches.
c. Interim order during first Hearing in DRT: During the first hearing in DRT, empanelled
Advocate should argue for granting the Interim Relief (s) prayed for and obtain the same.
d. Provisions for non-compliance of the Interim order issued by the DRT: Where the DRT
issues interim order for injunction against the Borrower / Guarantors to debar him from
transferring, alienating or otherwise dealing with the property / assets, orders to furnish
security or attachment of the properties, orders to appoint a receiver, orders to remove
any person from the possession or custody of the property, appointing a Commissioner,
and if the Borrower / Guarantors disobeys the said interim order or commits breach of
any of the terms on which order was made, an application can be filed for detention of
the Borrower/Guarantors in Civil Prison or for attachment of their properties.
e. Filing of Written Statements by the Defendants:
The defendant (s) on service of summons are required to file their reply within one month
from the date of service of Summons. The defendants shall file two complete sets of the
reply to the Original Application (O.A.) along with documents in a paper book form, with
the Registrar of DRT. The defendants shall also serve/ provide one copy of reply to the
Applicant (Bank).
i. The DRT may, in exceptional cases and in special circumstances to be recorded in
writing, allow not more than two extensions to the defendants to file the written
statement. On failure to file reply by the defendant (s) or on the date fixed for hearing,
the DRT may proceed to pass an order on the application as it deems fit.

ii. In cases where there is undue delay in disposal of Original Application (O.A.) in DRT
on account of granting extension for filing written statements by the defendants against
the provisions of the DRT Act and also frequent adjournments of the hearings, branches
should submit suitable applications in DRT.

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• Hearings in DRT:
Summary procedure is adopted by the DRTs for adjudication of dispute. Evidence is
taken on affidavit and cross examination is not permitted except in deserving cases.
a. Bank’s advocate should remain present on the dates of hearing and should arrange
for proper reply to all the issues raised by the Defendant’s counsel.
b. The Nodal Officer or Case Lead Officer (CLO)/Case Officer (CO) (SAMBs) or Chief
Manager/City Case Officer (SARBs) should be present at DRT on each date of
hearing to supplement the Bank’s empanelled Advocate in presenting the Bank’s side
in an effective manner. CLO/CO should be present invariably in all hearing of high
value cases. He should carry all documents pertaining to his cases. No adjournment
should be sought by the Bank.
c. After hearing of the Original Application (O.A.) has commenced as per the DRT Act,
branches should pursue the matter with DRT that it is continued from day-to-day until
the hearing is concluded.
d. In case DRT allows more than 5 adjournments to the defendants, a letter should be
addressed to the Presiding Officer.

• Issuance of Order by DRT:

a. After giving the Applicant and Defendant (s) an opportunity of being heard, DRT shall
pass such Interim or Final Order directing payment of the amount with interest which is
found due upto the date of realisation or actual payment.
b. The DRTs shall send a copy of every Order passed by it to the Applicant and the
Defendant (s).
c. On receipt of the Order passed by the DRT, Branch should immediately file Caveat
before DRAT.
d. The Presiding Officer, DRT shall issue a Recovery Certificate under his Signature to the
Recovery Officer for recovery of the amount of debts specified in the Certificate
containing:-
i. No. of Original Application

ii. Name & Designation of Parties.

iii. Particulars of claim.

• Terms of payment of Decreed amount. Execution of Recovery Certificate by

Recovery Officer, DRT:
a. The Recovery Officer, DRT shall proceed to recover the amount of debt specified in the
Recovery Certificate by one or more of the following modes:
i. By attachment and sale of movable / immovable properties of the Certificate Debtor (s) /
Borrowers, and / or Guarantors. Recovery Officer will issue sale proclamation notice and
will arrange for e-auction on the scheduled date.
ii. By taking possession of property over which security interest is created or any property
of defendant and appointing Receiver for such property and to sell the same.

683
 iii. By arrest / detention of the Judgment Debtor (s) in Civil Prison where they have sufficient
means to repay the Bank’s dues but deliberately avoiding the same.
iv. Appointing a Receiver for the management of the movable or immovable properties of
the Certificate Debtor (s) / Borrower(s), and / or Guarantors.

b. By issuing a Garnishee Order against any person from whom any amount is due to the
defendant directing him to pay the whole or part of the amount to the Recovery Officer.
c. The Branch should submit Form no. 13 (Proclamation of Sale) along with latest valuation
report of the properties to the Recovery Officer of DRT. Any assets unearthed by the Branch
should also be advised to R.O.
d. The Recovery Officer, DRT on receipt of Form no. 13 along-with latest valuation report
of the properties will issue sale proclamation notice and thereafter shall conduct the e-
auction.
e. The Sale-Certificate will be issued by the Recovery Officer, DRT to the successful Bidder
on deposit of the bid amount.

• Appeal:
i. Filing of Appeal against the Order of Presiding Officer, DRT:
a. The Bank, Defendant (s) [(Borrower(s) / Guarantor(s)] or even third party aggrieved by
an order of DRT may file an appeal to the Appellate Tribunal (DRAT) having jurisdiction
over that DRT.
b. The appeal is required to be filed with Appellant Tribunal (DRAT) within a period of 30
days from the date on which copies of the orders made by the DRT are received.
c. Where an Appeal is preferred, the Borrower / Guarantors are required to deposit with the
Appellate Tribunal, 50% of the amount of debt due as determined by the DRT so that the
Appeal is entertained by the Appellate Tribunal (DRAT). But the Appellate Tribunal (DRAT)
may waive or reduce the amount to be deposited with the reasons recorded in writing for
such waiver or reduction.
d. If the Bank decides to file an appeal against the Order of DRT, it should be filed in the
prescribed format.
e. However, the Appeal can be filed even after the expiry of 45 days by filing an application
for condonation of delay. Appellate Tribunal may entertain appeal in such cases, if satisfied
with the reasons for delay.
f. The Appellate Tribunal after giving notice to the parties, an opportunity of being heard
pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order
appealed against.

ii. Filing of Appeal against the Order of Recovery Officer, DRT:

a. The Bank, Defendant (s) [(Borrower(s) / Guarantors)] or even third party aggrieved by
an order of Recovery Officer may file an appeal to the DRT. The appeal is required to be
filed with DRT within a period of 30 days from the date on which a copy of the order made
by the Recovery Officer is received.

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• Closure/settlement of Accounts/cases: After the suit amount is recovered with costs or
account is closed under Compromise settlement as applicable, branch has to file a
Satisfaction memo in DRT for closure of the Recovery Proceedings.

Settlement through Lok Adalat

• Introduction: Lok Adalat is a forum where the disputes pending in the court of law or at
pre- litigation stage are settled amicably. Lok Adalat has been given statutory status under
the Legal Services Authority Act, 1987. An award made by the Lok Adalat is deemed to be
a decree of a civil court and is final and binding on all parties.
• Identification of cases which can be referred to Lok Adalat: Cases pending before
courts and cases likely to be filed before any court where borrowers are willing to settle
Bank’s dues to avoid lengthy court procedures. In suit filed cases, approval from the
concerned court for referring the case to Lok Adalat has to be obtained.
➢ Monetary ceiling of cases to be referred to the Lok Adalat organised by Civil Courts
is Rs. 20 lacs as fixed by RBI. Further, our branches can participate in Lok Adalats
to be organised by DRTs/DRATs irrespective of the amounts involved in the cases.
➢ Where the account is NPA and there is no suit or proceeding initiated but there is a
likelihood of a settlement, then the Bank or the Borrower may make an application
to the Lok Adalat for taking up the matter before the Lok Adalat.
➢ A list of identified accounts, with relevant details, is to be submitted to the Lok Adalat
for sending notices to borrowers for appearing before Lok Adalat.
• Preparations for Lok Adalat
a. The branches should send notices to borrowers to have a meeting for amicable
settlement of dues through Lok Adalat.
b. The branches should hold intensive pre-Lok Adalat meets with
borrower(s)/guarantor(s) and educate them on advantages of settling dues through Lok
Adalat.
c. The borrowers/guarantors must be encouraged to participate in Lok Adalat.
d. Branch should send a list of identified accounts to Lok Adalat.
e. The date and place of Lok Adalat must be fixed in advance and maximum publicity
must be given through newspapers, electronic and social media and through Bank
branches by circulating pamphlets, hand bills etc.,
f. The Bank should coordinate with the officials of Lok Adalat for sending notices to
borrowers for appearing before Lok Adalat.

• Settlement at Lok Adalats

a. The settlement in a Lok Adalat would be arrived at on the basis of factors such as dues
transferred to the Recalled Assets account, interest and other costs incurred thereafter, value
of the security available, repaying capacity of the borrower, cost of recovery etc.

b. Powers for settlement of dues through ‘Lok Adalat’ may be exercised within the powers
delegated for writing off net losses including cases arising out of compromise proposals in
terms of the scheme of Delegation of powers approved by the Bank. An in-principle approval
for compromise settlement from the appropriate authority for scaling down the dues is to be
685
obtained before participating in the Lok Adalat. The official representing the Bank would be
authorised for scaling down of the dues to the extent permitted under in- principle approval.

c. The Controlling Authority may authorise competent officials to represent the Bank in the
Lok Adalats and act within the in-principle approval accorded by the competent authorities
in respect of the specified cases. The inprinciple approval will consist of the maximum
concession that may be offered and the maximum repayment period and down payment that
can be accepted.

d. After hearing both borrower and Bank officials, Lok Adalat will pass the Award. A certified
copy of the award is to be given to all the parties.

e. Formal sanction of the competent authority will have to be obtained. The proposal for such
sanction will record the confirmation of the inprinciple approval.

f. All decrees awarded by Lok Adalats must be for the full amount with amount less recovered
shown as discount. Decrees must have a default clause in terms of which if any violation of
the terms of the settlement by the defendants occurs or if due installments are not paid
regularly in cases where repayment of dues in installments has been agreed upon, the entire
debt shall fall due for repayment and the Bank shall proceed legally without further reference
to the borrower.

g. Where the suit was also for enforcement of the mortgage, the decree on settlement by
Lok Adalat would be the final decree to enable the Bank to file execution in case of default
by the defendant.

h. The compromise amount may be agreed to be paid in monthly/quarterly installments or

depending on the income generation of the defendant. However, such repayments should
be made within a period not exceeding a total period of 36 months.

i. The proceedings in Lok Adalat will be recorded and borrower(s)/Guarantor(s) and Bank
officials must put their signature on the Award as token of acceptance.

j. The borrowers / Guarantors should be encouraged to pay maximum amount as upfront

payment on the day of Lok Adalat itself.

• Following up for settlement

a. Borrower(s)/Guarantor(s) are required to make payment as per the terms and
conditions of the Award. Hence close follow up with them is needed to ensure prompt
repayment.

b. In case Borrowers/Guarantors fail to make payment as per Award, Legal proceedings

must be initiated by filing Execution Petition before the competent Court through Bank’s
advocates.

c. If a pending case is settled at Lok Adalat, application should be filed for refund of court
fee already paid.

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 Recovery through Civil Courts

Bank may file suits before Civil Courts when the amount of total debt due from the
borrowers is less than Rs.20 lakh.

• Steps prior to filing a Civil Suit: Ascertaining facts and arranging documents
a. The amount of total debt due from the borrowers should be less than Rs.20 lakh.
Documents should not be time barred and should be in order.
b. The amount of total debt due from the borrowers should be less than Rs.20 lakh.
Documents should not be time barred and should be in order.
c. Copies of relevant records/documents have to be kept ready to provide the dealing
counsel for filling of suit.
d. Copies of relevant records/documents have to be kept ready to provide the dealing
counsel for filling of suit.

• Issue of Notice: The branch should arrange to issue notices by registered post with AD
through the advocate, to the borrower(s)/guarantor(s) recalling the advances and
claiming dues, costs, charges etc. as the first step for a civil suit for recovery of Bank’s
dues.

• Entrusting the Matter to the Advocate

a. Branch should engage an advocate who is in the panel of the Bank and who practices
in the Civil Court.
b. Branch should fix the professional fees to be paid to the advocate as per Bank’s
instructions.
c. The following documents to be provide to the dealing advocate along with the case
history:
i. Loan application forms signed by the borrowers and guarantors.
ii. Sanction Letter/Arrangement Letter.
iii. Board Resolution in case of companies.
iv. All the security documents executed by the Borrower(s) and the Guarantor(s), namely
the Loan agreements, Security creating documents and Guarantee documents.
v. Applicable forms for creation of charge filed before the ROC in the case of company
advances.
vi. Memorandum of deposit of title deeds.
vii. Letter of confirmation of deposit of Title Deeds in case of Equitable Mortgage or
Mortgage Deed in case of Registered Mortgage.
viii. Board resolution for availing enhanced facilities
ix. Sanction letter/Arrangement letter for enhancement.
x. Security documents obtained for enhancement of limit/facilities (Supplemental
documents).
xi. Letter of confirmation for extension of mortgage.
xii. Memorandum of deposit of title deeds for extension of mortgage.
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 xiii. . Revival letter and balance confirmation letters.
xiv. Certified copies of Title deeds/title documents.
xv. Valuation Reports and Stock Statements.
xvi. Correspondence exchanged between Borrowers, Guarantors and the Bank.
xvii. Statement of Accounts upto the date of account became NPA and unapplied interest
and statements for the period thereafter upto the date of filling the application.
xviii. Legal notice and reply notice, if any.
xix. Where SARFAESI action is initiated, copy of section 13(2) notice issued to the
Borrower(s) and the Guarantor(s) and other related correspondence.
xx. Certificate under the Bankers’ Books (Evidence Act,) 1891.
xxi. Vakalat nama in favour of the advocate.

• Time line for filing of suit(s): Civil suit is to be filed immediately on approval but in any
case within a maximum period of 3 months from the date of approval. However, there
has to be clear margin of two months after the date of filing to the date on which the
documents will be barred by limitation.
• Applications / interim relief which can be moved / sought during pendency of Civil
Suit / Executions are as below:
i. Application for interim stay of disposal/removal of property by the debtor with a view to
defraud the creditor.
ii. Application for interim sale of any movable property which is subject to speedy or
natural decay or which for any other just or sufficient reason is desirable to be sold at
once.
iii. Application for detention, preservation or inspection etc. of any property which is
subject matter of such suit.
iv. Application for attachment before judgment.
v. Application for decree on the basis of admissions.
vi. Application for appointment of Court Commissioner/Receiver for possession or sale of
the property where necessary.
vii. Application for attachment of debt, share and other property not in possession of
judgment debtor.
viii. Application for examination of judgment debtor to disclose his property or assets or
means of satisfying the money decree.
ix. Application for attachment and sale of immovable property of the judgment debtor.
x. Application for arrest and detention of judgment debtor.
xi. Application for attachment of salary and allowances of the borrower(s) and
guarantors(s).
• Filing of the Plaint: Plaint is to be signed by the authorized Branch official. Demand
Draft for court fees, process fees and copying fees has to be prepared. Affidavit of Branch
official has also to be filed along with the plaint, in duplicate. The case number allotted by
the Court has to be obtained from the Court by the Branch. Before filing of suit, all right
of lien including general lien and set off should be exercised.

• Service of Summons: Adequate numbers of copies of the plaint as directed by the Court
have to be made available. Service of Summons is to be effected to each defendant
through Court by the Bank as per Court’s orders.

688
• Filing of Execution Petition:

a. Application for execution of decree has to be filed with the help of the Advocate. The
application must contain the following particulars:

i. Number of the Suit

ii. Names of the parties.
iii. Date of the decree.
iv. The amount with interest (if any) due upon the decree, or other relief(s) granted
thereby. v. The amount of the costs (if any) awarded.
vi. The name of the person against whom execution of the decree is sought.
vii. Attachment and/or sale of any property.
viii. Description of the immovable property sufficient to identify the same and the judgment
debtor’s share or interest in such property, along with certified extract, pertaining to such
property.

b. An application to the Court to be made for directions to the Borrower(s)/ Guarantor(s)

to file particulars of their assets
c. If the Borrower(s) / Guarantor(s) die pending execution of the decree, application to
the same Court is to be filed to execute the decree against the legal representatives. The
Court shall issue notice to the legal heirs and fix dates for hearing.
d. Details of assets in the names of judgment debtors along with their valuation reports
have to be provided to the Court for arranging sale thereof, by public auction.
e. On receipt of sale proceeds, the amount net of expenses has to be credited to the
borrower’s account(s).

COMPROMISE SETTLEMENT
Compromise settlement refers to a negotiated settlement where a borrower offers to pay,
and the Bank agrees to accept in full and final settlement of its dues an amount less than
the total amount due to the Bank under the relative loan contract. Thus, the settlement
invariably involves certain sacrifice by the Bank by way of write off and /or waiver of a
portion of its dues.

Recovery of advances through compromise settlement is accepted as an effective

nonlegal resolution by the Bank in cases where it is appropriate to adopt this option. It is
not possible, at the same time, to lay down precise guidelines which can be followed
uniformly in all compromise cases, as each offer is unique in the context of the
circumstances necessitating its consideration as a recovery option. However, certain
basic principles and guidelines to be kept in view by the branches and their controllers,
while processing compromise proposals, are detailed in the subsequent paragraphs.

1. Basic principles for Compromise Settlement proposals

• Bank’s Approach: The compromise will be a negotiated settlement under which
the Bank will endeavour to recover its dues to the maximum extent possible with
minimum sacrifice and this process will be initiated after the Bank has exercised

689
 its right to set off or lien against any deposits of the borrower/guarantor lying with
the Bank.
• Realisable Value of Securities, and NPV of compromise amount & Securities:
The realisable value of security charged to the Bank as also the Bank’s ability to
take possession of the security and sell it will be the basic factors which would
decide the compromise amount. While assessing the realisable value of security,
proper weightage would have to be given to its location, condition and
marketability. For this purpose, services of approved valuers may be engaged and
it should be ensured that the valuation reports are not more than twelve months
old. In case value of property is above Rs.1cr, two valuation reports from Bank’s
Realisable Value of Securities, and NPV of compromise amount & Securities: The
realisable value of security charged to the Bank as also the Bank’s ability to take
possession of the security and sell it will be the basic factors which would decide
the compromise amount. While assessing the realisable value of security, proper
weightage would have to be given to its location, condition and marketability. For
this purpose, services of approved valuers may be engaged and it should be
ensured that the valuation reports are not more than twelve months old. In case
value of property is above Rs.1cr, two valuation reports from Bank’s
For calculation of NPV, the rate of discount should be taken as the Prevalent
Benchmark Rate (presently MCLR) for six month tenor with annual rests and the
maximum estimated time to realize the securities may be taken as 5 years from
the date of notice under section 13(2) in case of SARFAESI action and 7 years
from the date of filing suits in case of DRT / Court cases.
• Initial Deposit: Normally an initial deposit of at least 5% of the offer amount may
be taken from the borrower under no lien account as an evidence of the borrower's
intention to pursue the compromise settlement with the Bank along with the
compromise offer letter.
• Terms of Payment: Time Period for Payment & Charging of Interest on
Compromise Settlement amount: It will be the endeavour of the Bank to get the
entire compromise amount paid up in lump sum. In cases where the amount is
agreed to be recovered in instalments, normally at least 15% of the approved
settlement amount (inclusive of initial deposit) would be payable upfront with the
balance instalments spread over a maximum period of 12 months. Repayments
exceeding 12 months should not generally be considered unless the repayment
source is assured to the satisfaction of the Bank. Further, repayment period shall
not be extended beyond a period of 18 months without obtaining administrative
approval from an official not below the rank of Chief General Manager. Efforts
should be made in such cases to tie up the payment directly to the Bank. The
sources from which the borrowers and/or guarantors will raise funds to pay the
compromise amount will be identified and recorded, particularly in those cases
where the payment is proposed to be made in instalments. In case, the
compromise amount is not paid as per terms of sanction, the Bank will be entitled
to treat the compromise settlement as cancelled. However, the sanctioning
authority (of original sanctioned OTS/Compromise) may restore failed OTS only
once in special circumstances if the sanctioning authority is satisfied with reasons
that the failure was beyond the control of the borrower (s). The recommending
authority has to specifically mention the circumstances and the rationale for
690
 accepting the reasons mentioned in the proposal given (in writing) by the borrower
which should be approved by the sanctioning authority. The failed Compromise
may only be restored within six months from date of failure of the compromise. i.e.,
the due date when the borrower fails to pay any instalment of the compromise
subject to interest being charged as per the approved compromise for the delayed
period.

To incentivise early payment, no interest is to be charged on the compromise

amount paid within four months from the date of approval of compromise conveyed
to the borrower even in cases of compromise settlement on instalment basis. If the
entire compromise amount is not paid within four months, interest at Prevalent
Benchmark Rate (presently six month MCLR) on the balance amount paid after
four months shall be charged from 30th day from the date of letter conveying
approval of the compromise to the borrower.
• Cases of willful defaulters: In the matter of settling compromise amount,
distinction will need to be made between willful defaulters and the borrowers
defaulting for reasons beyond their control. In case of the former, a tough stand
has to be taken and the proposal should be put up after obtaining in-principle
approval of the GM (NW/CCG/CAG/SARG) based on a review of such cases.
Further, in case of willful defaulters, initial deposit under no lien accounts will be
15% of offer amount and on approval of the compromise, upfront payment
including initial deposit will be 25% of the approved compromise amount. If the
compromise amount is not paid within four months from the date of approval of
compromise conveyed to the borrower and interest is to be charged on balance
amount from 30th day of the date of letter conveying approval of compromise to
the borrower at minimum Prevalent Benchmark Rate (presently six month MCLR)
+ 1%.
• Default Clause: Compromise settlement will be arrived at with
borrowers/guarantor’s subject to the condition that in the event of any failure to
honour any of the terms of the compromise settlement, the Bank will be entitled to
exercise against the borrowers / guarantors all the rights and remedies available
prior to the compromise settlement. This will include collection from the
borrowers/guarantors of the entire amount due prior to the compromise settlement,
together with interest thereon at the applicable rates minus the amount paid
through compromise.
• Consent Decree: An application for obtaining Consent Decree from the
appropriate Court/DRT should be filed immediately on sanction of the compromise
proposal incorporating therein a clause that in the event, the borrowers /
guarantors fail to adhere to the terms of compromise, the compromise settlement
shall stand automatically cancelled and the Bank will be entitled to recover the
entire outstanding amount due together with interest at the contractual rate. A
consent decree/recovery certificate should be obtained from the competent
court/DRT recording the settlement. In case the borrowers / guarantors do not
adhere to the settlement terms, the Bank can proceed with the execution of the
decree/recovery certificate.

691
 Tax Deducted at Source (TDS)

The Indian Income Tax Act provides for chargeability of tax on the total income of a person
on annual basis. Tax deduction at source (TDS), as the name imply aim at collection of
revenue at the source of income.
TAX DEDUCTED AT SOURCE (TDS) TAX COLLECTED AT SOURCE (TCS)
FINANCIAL YEAR 2021-22

TDS and TCS compliance for the F.Y. 2021-22 would be based on the Finance Act,
2022.
TDS on purchase of any goods: A new section 194Q has been introduced to provide for TDS
of 0.1% (5% in case PAN is not available as per section 206AA) on purchase of goods from
a resident for a value or aggregate of such value exceeding INR 50 lakhs in a financial year.

TDS REQUIREMENTS AT A GLANCE - FINANCIAL YEAR 2021-22

PAYMENTS TO RESIDENTS OTHER THAN SALARY

Nature of When to deduct tax at source (i.e. PAN PAN not

Section
Payment payments or credit whichever is earlier) Available Available
Rate [%} Rate [%}
Interest on 8% Savings (Taxable) Bonds,
10 20
Interest on 2003 exceeding Rs 10,000/-
193
Securities Interest on 7.75% Savings (Taxable)
10 20
Bonds, 2018 exceeding Rs 10,000/-
Dividend distributed to the Shareholders
194 Dividend 10 20
exceeding Rs. 5,000/-
Interest on Term Deposits [including RD] -
exceeding Rs.40,000/- per person for
Interest Bank as a whole in a financial year for 10
other than other than senior citizens (as amended by
194A Interest Finance Act, 2019) 20
on
securities exceeding Rs.50,000/- per person for
Bank as a whole in a financial year for
10 20
senior citizens

692
 Where a single contract payment exceeds
Rs.30,000/- or in cases where the
Payment/C aggregate amt of such payments credited
redit to or paid or likely to be credited or paid
Contractor during the financial year (including
194C*
s/sub- advances if any) exceeds Rs.1,00,000/-.
Contractor TDS is required to be made on payment or 20
s credit to :
1
a) Individual/HUF
2
b) Other than individual/HUF
Commissio
When such aggregate commission or
194H n or 5 20
brokerage exceeds Rs.15,000/ - in a F.Y.
Brokerage
When aggregate rent in a financial year
exceeds Rs.2,40,000/- [including advance
if any] (as amended by Finance Act,
2019)
194I Rent
i. Rent of Machinery, Plant & Equipment 2
20
ii. Rent of others viz. land, building,
furniture 10
and fittings etc. :
When consideration on acquisition of
immovable property from a resident
Transfer of transferor (other than rural agricultural
194 IA immovable land) equal to or more than Rs. 1 20
property 50,00,000/-, deduct TDS on such sum or
the stamp duty value of such property,
whichever is higher.
When such aggregate fees in a financial
year exceeds Rs.30,000/-
Fees for professional Services
Fees for technical Services (w.e.f. 10
01.04.2020)
2
Payee engaged only in the business of
Fees for operation of Call Centre (w.e.f.
Profession 01.06.2017)
al or Royalty in the nature of consideration for 2
194J
Technical sale, distribution or exhibition of
services or cinematographic films
20
royalty 10
Royalty (other than payment for sale,
distribution or exhibition of
cinematographic films)
Remuneration / fees / commission
payable to director (not being in the
10
nature of salary) - No threshold limit for
TDS on such payments

693
 Customer has filed ITR for any one of
three previous years, where time limit to
file ITR u/s.
139(1) has lapsed, immediately preceding
the previous Year in which payment is
made,
then threshold limit & TDS rates will be as
below: NIL
- Cash Withdrawals upto Rs. 1 Crores
on Cash
- Cash Withdrawals in excess of Rs. 1 2
Withdrawal
Crores
s, in
excess of
Customer has not filed ITR for all three
194N threshold
previous years ,where time limit to file ITR
limit
u/s.
of One
139(1) has lapsed, immediately preceding 20
Crore or 20
the previous Year in which payment is
Lacs
made,
then threshold limit & TDS rates will be as
below: (w.e.f. 01.07.2020)
NIL
- Cash Withdrawals upto Rs. 20 Lacs
2
- Cash Withdrawals from Rs. 20,00,001 to
Rs. 1 Crores
5
- Cash Withdrawals in excess of Rs. 1
Crores

TDS REQUIREMENTS AT A GLANCE - FINANCIAL YEAR 2021-22

PAYMENTS TO NON-RESIDENTS OTHER THAN SALARY

Section 195 [Interest [other than NRE/FCNR Ac] & any other payment taxable under Income
Tax Act. However, all rates are subject to Agreement for Double Tax Avoidance Agreement
(DTAA)].

When to If the recipient is an If the recipient is a If the recipient is a

deduct tax individual, HUF, BOI or AOP cooperative non-domestic
at society or company
source (i.e. Firm
payments
or credit
whichever
is earlier)

Nature of Income paid [%] [%] [%]

Payment

694
Interest [on =< 50 Lacs 20.8000 =< 1 20.8000 =< 1 crore 20.8000
loan / > 50 Lacs & =< 1 22.8800 crore
deposit in Crore
foreign > 1 crore & <= 2 23.9200 > 1 crore 23.2960 > 1 crore 21.2160
currency]* crore and <= 10
> 2 crore and <= 26.0000 crore
5 crore
> 5 crores 28.4960 > 10 crores 21.8400

Interest [on =< 50 Lacs 31.2000 =< 1 31.2200 =< 1 crore 41.6000
loan / > 50 Lacs & =< 1 34.3200 crore
deposit in Crore
Indian > 1 crore & <= 2 35.8800 > 1 crore 34.9440 > 1 crore 42.4320
currency]* crore and <= 10
> 2 crore and <= 39.0000 crore
5 crore
> 5 crores 42.7440 > 10 crores 43.6800

Rent =< 50 Lacs 31.2000 =< 1 31.2000 =< 1 crore 41.6000

> 50 Lacs & =< 1 34.3200 crore
Crore
> 1 crore & <= 2 35.8800 > 1 crore 34.9440 > 1 crore 42.4320
crore and <= 10
> 2 crore and <= 39.0000 crore
5 crore
> 5 crores 42.7440 > 10 crores 43.6800

Dividend =< 50 Lacs 20.8000 =< 1 20.8000 =< 1 crore 20.8000

> 50 Lacs & =< 1 22.8800 crore
Crore
> 1 crore 23.9200 > 1 crore 23.2960 > 1 crore 21.2160
and <= 10
crore
> 10 crores 21.8400

Any other To be examined on case-to-case basis.

income
* Includes interest on NRO accounts

PAYMENT TO SPECIFIED SENIOR CITIZEN UNDER SECTION 194P

(PENSION/INTEREST)

EXISTING INCOME TAX REGIME

Section of When to deduct tax at source Payment to an individual

Income (i.e. payments or credit
Tax Act whichever is earlier)

695
Nature of IT(%) Health & Total(%)
Payment Educatio C=A+B
A n
Cess (%)

B=(%of
A)

Payments to Monthly at the time of payment

Indian where estimated taxable salary
Residents exceeds the exemption limit

Sec.192
Salary/Pension
Sec 194P
Pension/ Interest

A. For person (age less than 60

years)

Upto Rs. 2,50,000 NIL NIL NIL

2,50,001 to 5,00,000 5 4 5.20

5,00,001 to 10,00,000 20 4 20.80

10,00,001 onwards 30 4 31.20

B. For senior citizens (persons of

age 60 years or more but below
80 years )

Upto Rs. 3,00,000 NIL NIL NIL

3,00,001 to 5,00,000 5 4 5.20

5,00,001 to 10,00,000 20 4 20.80

10,00,001 onwards 30 4 31.20

C. For senior citizens (persons

of age 80 years and above )

Upto Rs. 5,00,000 NIL NIL NIL

5,00,001 to 10,00,000 20 4 20.80

10,00,001 onwards 30 4 31.20

696
NEW SIMPLIFIED INCOME TAX REGIME u/s 115BAC

Section of Income When to deduct tax at Payment to an individual

Tax Act source (i.e. payments or
credit whichever is earlier)

Nature of Payment IT(%) Health & Total(%)

Education C=A+B
A Cess (%)

B=(%of A)

Payments to Indian Monthly at the time of

Residents payment where estimated
taxable salary exceeds the
exemption limit

Sec.192 Salary/ For all Individuals

Pension
Sec 194P Pension/
Interest
Upto Rs. 2,50,000 NIL NIL NIL

2,50,001 to 5,00,000 5 4 5.20

5,00,001 to 7,50,000 10 4 10.40

7,50,001 to 10,00,000 15 4 15.60

10,00,001 to 12,50,000 20 4 20.80

12,50,000 to 15,00,000 25 4 26.00

15,00,001 onwards 30 4 31.20

Major Exemptions or deductions Withdrawn if person opted for NEW

SIMPLIFIED INCOME TAX REGIME u/s 115BAC

i. Section 10(5) - Leave Travel Concession

ii. Section 10(13A) - House Rent Allowance
iii. Allowances u/s 10(14) (As per Appendix-A)
iv. Section 16 - Standard Deduction & Tax on Employment
v. Section 24 (b) - Interest on Self-occupied House Property
vi. All Chapter - VIA deductions except 80 CCD (2) - Employers contribution to NPS
vii. Losses set-off from House property not allowed

697
Note: 1) As per Section 87A of Finance Act, 2019 the amount of rebate is Rs. 12,500/-
. The total income of the assessee should not exceed 5,00,000/- in order to avail the
benefit of this rebate. Rebate is applicable for both Tax regimes. 2) Surcharge is
applicable at the rates mentioned below (for both Tax regimes):

PERSON HAVING A TOTAL INCOME SURCHARGE RATE

=< 50 lakhs 0%

> 50 lakhs and <= 1 crore 10%

> 1 crore and <= 2 crore 15%

> 2 crore and <= 5 crore 25%

> 5 crore 37%

Bank has centralised TDS from F.Y. 2017-18. As we know that Tax is being deducted by
respective source streams:

SN Name of Streams TDS Deducted from TAN No.

TAN will be mapped to each
1 CBS Interest on Deposits branch/office based on
network in the circle
Salary & Pension
2 HRMS payments to employees MUMS86151C
and
Pension to Government
3 CPPC MUMS86152D
employees.
4 VPS Vendor Payments MUMS86153E
Miscellaneous data
(For payments
5 MUMS86154F
outside the 4
streams)

TDS Transactions which can be processed through source systems (i.e. CBS, VPS,
HRMS and CPPC) should not be routed through miscellaneous stream.
TDS deducted under miscellaneous stream is to be parked in the specified BGL - TDS on
Miscellaneous payments (4899154). Branches / operational units should not deposit challans
at their end in any case.
According to CBDT Circular No. 23/2017 dated 19th July 2017, tax should not be deducted
on the component of “GST on services” (if indicated separately in the Invoice).

Under Centralised environment, from F.Y. 2017-18, the TDS statements (Form 24Q,
26Q & 27Q) will be filed at Central level.
TDS Certificates will be downloaded centrally from TRACES and shall be accessible to
branches/operating units through TDS Reporting System (TRS) as well as through their
Branch report folders.

698
 Exemption / Concession Certificates (EC/CC)

EC / CCs should have the correct Centralised TANs and section written on them. In
absence of which, these Certificates should not be accepted.

The branches/offices of the Bank are required to collect and preserve the certificate issued
under section 197 provided by the deductees based on which tax is not deducted or deducted
at a lower rate.
Importance of Permanent Account Number (PAN):-

Under Section 206AA of the Income Tax Act, the rate of TDS is higher of 20% or the
applicable rate in all cases where valid PAN is not quoted by the recipient [except on payment
of interest under section 194LC or to non-residents not being a company or foreign company,
subject to prescribed conditions (as may be notified by Income Tax department)]. Further,
the declaration filed in 15G and 15H is not valid unless the person filing the declaration
furnishes his valid PAN in such declaration.
Consequences for non-compliance of TDS provisions

We have to reiterate that noncompliance with TDS requirements provided in the IT Act is
subject to severe penalties. Some of the major interest, fees and penalties are as below: -
1. In case of failure to deduct whole or part of TDS, the deductor is liable to pay simple
interest @ 1% under section 201(1A) for every month or part of a month on the amount
of tax in arrear from the date on which such tax was deductible to the date on which
such tax is deducted. Further, the deductor may be liable for penalty of sum equal to
the amount of tax, which has been failed to be deducted.
2. In case of failure to deposit whole or part of TDS in Govt. account after deduction, the
deductor is liable to pay interest @ 1.5% under section 201(1A) for every month or
part of the month on the amount of such tax from the date on which such tax was
deducted to the date on which such tax is actually paid. Further, a person who fails to
pay tax to the credit of the Central Government may be liable for prosecution u/s.276B.
Form 15G/15H: - Under Section 197A of the Income Tax Act:

Individual (of less than 60 years of age) or a person (not being a Company or Firm), who is
resident in India and can request the Bank not to deduct tax at source on interest
paid/payable on time deposits and rent payable by furnishing a declaration in following
Forms to the effect that the tax on their estimated total income of the relevant financial year
will be Nil.
Sr. No. Eligible Individual Form NO.
1. Less than 60 years of age 15 G
2. Resident senior citizen person 15 H

In this regard, it is to be noted that a customer would need to provide the details of all of
his/her time deposits with Bank in Form 15G/H. The declaration given in the Form is valid
for a financial year.

699
 TDS Refund

In case of any erroneous deduction of Tax, branches have to refund the TDS to
customer/vendor/pensioner in the respective source stream only:

1. TDS on Interest on deposits in CBS: Branches can refund the TDS to customer
through appropriate screen in CBS, till 15 days after the end of the quarter if sufficient
balance is available in respective TDS BGL accounts.
2. TDS on Vendor payments in CBS: Branches can refund the TDS to vendor through
appropriate screen in VPS till month end if sufficient balance is available in respective
TDS BGL accounts.
3. TDS refunds will not be available for HRMS.

Major payments made by Bank where TDS is applicable:-

1. Interest on securities [Section 193].

2. Dividend [Section 194]
3. Interest other than Interest on securities [Section 194A].
4. Payment/Credit to Contractors/sub- Contractors [Section 194C].
5. Commission, brokerage etc. [Section 194 H].
6. Rent [Section 194 I].
7. Fees for professional or technical services or royalty [Section 194J].
8. Transfer of immovable property [Section 194IA].
9. On Cash Withdrawals exceeding threshold limit [Section 194N]
10. Payment to e-commerce participant [Section194O]
11. Purchase of Goods [Section 194Q]
12. Interest [other than NRE/FCNR Ac] & any other payments made to non-residents,
which are taxable under the Act [Section 195].
13. Payment to specified senior citizens [Section 194P];
14. Benefits or Perquisites arising out of Business or Profession (Section 194R)
15. Purchase Consideration of Virtual Digital Asset (Section 194S)
16. Any other payments liable for TDS.

List of Applications and Streams of TDS

Sr.No Application Stream Name of the BGL at Branch/Operating unit BGL allotted
Level

1 CBS CBS TDS on Interest of deposit-NEW 4898047

2 VPS VPS TDS on payments made for RentNEW 4898048

3 VPS VPS TDS on payments-VPS (Other than Rent)-NEW 4898049

4 HRMS HRMS TDS on payments to employeesHRMS-NEW 4898050

5 CPPC CPPC TDS on Pension payments -NEW 4898051

6 VPS MISC TDS on MISC payments -NEW 4898054

7 CBS 194N TDS on Cash WithdrawalsConsolidate 4899174

700
Payments made by the Bank where TDS is not applicable:

1. Under section 196 of the Act, no deduction of tax shall be made from any sum payable
to:
• the Government (Central Govt., State Govt and Union Territories Administrators), or
• the Reserve Bank of India (RBI), or
• a corporation established by or under Central act, exempt from income tax on its
income, or
• a Mutual Fund specified under clause 23D of section 10 (where such sum is
payable to it by way of interest or dividend in respect of any securities or shares
owned by it or in which it has full beneficial interest, or any other income accruing
or arising to it).

2. Under section 194A of the Act, TDS is not to be deducted on Interest payments made
to
• any banking company/co-operative bank,
• financial corporation formed under Central or State statue,
• LIC,
• UTI,
• insurance company/insurance co-operative society and
• other Notified Institutions. Some of the examples of Other Notified Institutions
are as follows –
o Securities Exchange Board of India
o Pension Fund Regulatory and Development Authority
o Telecom Regulatory Authority of India
o Insurance Regulatory and Development Authority
o Other notified institutions

3. No tax is required to be deducted on following payments made to the scheduled Banks

• bank guarantee commission.

• cash management service charges.
• depository charges on maintenance of DEMAT accounts.
• charges for warehousing services for commodities.
• underwriting service charges.
• Credit card or debit card commission for transaction between the merchant
establishment and acquirer bank.
• Clearing charges (MICR charges) including interchange fee or any other similar
charges by whatever name called charged at the time of settlement or for clearing
activities under the Payment and Settlement Systems Act, 2007.

When to deduct Tax:-

TDS is to be deducted at the time of:-

i. Credit of such sum to the account of the payee; or
ii. Payment thereof; or
iii. Crediting such sum to any account in the books of accounts
Whichever is earlier

701
 English Comprehension

Practice Set 1
Read the following passage carefully and answer the questions given below it.

A long time ago, on a big tree in the lap of the mountain, lived a bird named Sindhuka.
It was a rather special bird because its droppings turned into gold as soon as they hit
the ground. One day, a hunter came to the tree in search of prey, and he saw Sindhuka's
droppings hit the ground and turn into gold. The hunter was struck with wonder. He
though, "I have been hunting birds and small animals since I was a boy, but in all my 80
years, I have never seen such a miraculous creature. He decided that he had to catch
the bird somehow. He climbed the tree and skillfully set a trap for the bird. The bird,
quite unaware of the danger it was in, stayed on the tree and sang merrily. But it was
soon caught in the hunter's trap. The hunter immediately seized it and shoved it into a
cage.

The hunter took the bird home joyfully. But as he had time to think over his good fortune
later, he suddenly realized, "If the king comes to know of this wonder, he will certainly
take away the bird from me and he might even punish me for keeping such a rare
treasure all to myself. So, it would be safer and more honorable if I were to go to the king
and present the unique bird to him," The next day, the hunter took the bird to the king
and presented it to him in court with great reverence. The king was delighted to receive
such an unusual and rare gift. He told his courtiers to keep the bird safe and feed it with
the best bird food available.

The king's prime minister though, was reluctant to accept the bird. He said "O Rajah,
how can you believe the word of a foolish hunter accept this bird? Has anyone in our
kingdom ever seen a bird dropping gold? The hunter must be either crazy or telling lies.
I think it is best that you release the bird from the cage." After a little thought, the king
felt that his prime minister's words were correct. So, he ordered the bird to be released.
But as soon as the door of the cage was thrown open, the bird flew out, perched itself
on a nearby doorway and defecated. To everyone's surprise, the dropping immediately
turned into gold. The king mourned his loss.

1. Which of the following is possible the most appropriate title for the story? a. The
Skilled Hunter

1. The King’s Prime Minister

2. The King’s Defeat
3. The Bird with the Gold Dropping
4. Trials and Tribulations of the Foolish Bird Sindhuka

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 2. Which of the following emotions made the hunter gift the bird to the king?

a) Respect b) Joy c) Pride

d) Fear e) Awe

3. Which of the following is true according to the story?

1. Birds like Sindhuka were very common in the area near the mountain
2. Sindhuka remained caged for the rest of its life
3. Sindhuka was unaware of the trap laid by the hunter
4. The King, when told to not accept the bird, did not listen to his Prime Minister
5. All are true

4. Why the king was’s Prime Minister reluctant to accept the bird?

1. He believed that the bird would die if caged

2. He knows about the hunter’s habit of lying
3. He believed that the bird would bring bad luck to the king
4. His sources had informed him that the hunter was crazy
5. None of these

5. How did the hunter find Sindhuka?

1. He had read stories about the bird and had set traps at various locations in the
city
2. He followed the bird’s droppings
3. He was on the lookout for a prey when he chanced upon it
4. People from the city had informed him about the bird’s whereabouts
5. He was attracted by the birds calls

Practice Set 2

Once a thief named Kalu had planned to loot the king's treasury. At midnight, he went
to the palace and began to drill a hole in the side wall of the treasury. The king, who
was awake in his bedroom just above the treasury, came out to investigate the whirring
sound. He was dressed in a simple nightgown and the thief could not recognize him. He
asked Kalu who he was and what he was doing. The latter said, "Sir, I am a thief and
intend to loot this treasury. I presume that you are also a thief and have come with the
same intention. No matter let us both go inside, and we shall share the loot equally.
"Both entered the treasury and divided all the money and the jewels equally between
them.

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Inside a locker they found three big diamond pieces. As the thief was puzzled as to how
to divide the three pieces into two portions, the king suggested. "We have taken away
everything else. Let us leave one diamond piece for the poor king and share the rest
equally". Kalu agreed and when he took his leave, the king asked for his name and
address. As Kalu had taken a vow of telling only the truth, he has the correct information.

The king took away his share of the loot and hid it in his room. Next morning, he asked
his Prime Minister to inspect the treasury as he had heard some strange sounds during
the previous night. The Prime Minister saw to his horror that all the valuables were
missing and only a single diamond was left, perhaps inadvertently, by the thief. He put
the diamond in his own shift pocket as its loss could be ascribed to the thief and nobody
would suspect the Prime Minister. The Prime Minister went back to the king. The king
particularly enquired. "Do you mean that the thief has completely denuded the treasury
of its valuables and not a single item has been left?" The Prime Minister confirmed it. The
king asked the chief of police to bring in Kalu. When Kalu came he was unable to
recognize the king as his accomplice of the previous night. The king asked him, "Are
you the thief who has stolen everything from my treasury leaving nothing back?" Kalu
confirmed it but said, "Sir, I did leave one diamond back in the locker as advised by an
accomplice of mine and it should still be there." The Prime Minister interrupted saying,
"Your Majesty, this thief is lying. There is nothing left in the locker." The king asked the
police chief to search the pockets of the Prime Minister, from where the missing diamond
was recovered. The kind told his courtiers, "Here is a Prime Minister, who is a liar and a
thief and here is a thief who is at truthful gentleman."

1. The king came out in the middle of the night in order to

1. Help kalu to break into the palace treasury

2. Share the loot equally between Kalu and himself
3. Find out the source of and reason for the sound he had heard
4. Catch the thief who had come to steal his valuables
5. None of these

2. Kalu could not recognize the king because

1. The king was wearing clothes like those of an ordinary person

2. The king’s clothes were covered by a simple nightgown

3. Kalu had never seen the king before

4. Kalu had not seen the king descending from his bedroom
5. None of these

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 3. Which of the following made the king suspect the Prime Minister? The Prime
Minister’s statement that

1. Except for one piece of diamond all other valuables were stolen

2. All the valuables without any exception were stolen from the treasury

3. The thief was lying when he said he had left one diamond back in the locker
4. The search for the diamond did not yield any favourable result
5. None of these

4. Which of the following horrified the Prime Minister?

1.The valuables missing from the king’s treasury

2.A piece of diamond left in the locker

3. Certain strange sounds heard by the Prime Minister
4.The fact that the king suspected him of stealth
5.None of these
Practice Set 3

Banking sector reforms in India were introduced in order to improve efficiency in the
process of financial intermediation. It was expected that banks would take advantage
of the changing operational environment and improve their performance. Towards this
end, the Reserve Bank of India initiated a host of measures for the creation of a
competitive environment. Deregulation of interest rates on both deposit and lending
sides imparted freedom to banks to appropriate price their products and services. To
compete effectively with non-banking entities, banks were permitted to undertake
newer activities like investment banking, securities trading and insurance business.
This was facilitated through amendments in the relevant acts which permitted PSBs
to raise equity from the market up to threshold limit and also enabling the entry of new
private and foreign banks. This changing face of banking led to an erosion of margins
on traditional banking business, promoting banks to search for newer activities to
augment their free incomes. At the same time, banks also needed to devote focused
attention to operational efficiency in order to contain their transaction costs.
Simultaneously with the deregulation measures prudential norms were instituted to
strengthen the safety and soundness of the banking system. Recent internal empirical
research found that over the period 1992-2003, there has been a discernible
improvement in the efficiency of Indian banks. The increasing trend in efficiency has
been fairly uniform, irrespective of the ownership pattern. The rate of such
improvement has, however, not been sufficiently high. The analysis also reveals that
PSBs and private sector banks in India did not differ significantly in terms of their
efficiency measures. Foreign banks, on the other hand, recorded higher efficiency as
compared with their Indian counterparts.

705
 1. Prudential norms were initiated in the banking sector with a view to

1. Increase operational efficiency

2. Contain the non-performing assets
3. Strengthen the soundness of banking system

4.Improve the customer service

5.None of these

2. Banking sector reforms in India were introduced for the purpose of

1. Giving more and more employment opportunities to the educated unemployed

2. Taking care of the downtrodden masses
3. Increasing efficiency in the banking activities

4.Giving better return to the Central Government

5.None of these

3. Banks can control their transaction costs by

1. Restricting their lending activities

2. Undertaking more and more non-banking activities
3. Encouraging the customers to bank with other banks
4. Devoting more attention to operational efficiency

5. None of these

4. The recent internal empirical research conducted by the RBI found that

1. There is cut-throat competition in banking industry

2. The rate of return is not commensurate with the operational cost
3. The rate of improvement has not been high

4.Nationalised banks and private sector banks did differ in the efficiency measures
5.None of these

5. Which of the following statements recognising improvement in efficiency is true in

the context of the passage?

1.There is no discernible difference in efficiency parameters

2. The foreign banks recorded higher efficiency

3.The efficiency of foreign banks is not comparable with Indian banks

4.The rate of such improvement in efficiency was very high
5.None of these

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 Practice Set 4

Various measures have been deployed to combat food inflation. Subsidies on food and
fertilisers, imports of food as well as regulations to prevent hoarding farm produce did
succeed in stabilising prices from time to time. But such crisis management has been
able to provide only short-lived relief, and prices have gone up from 2007.Bringing
down food inflation will benefit the consumer but make prices unattractive to farmers.
This will accentuate poverty. Un remunerative prices discourage investments in
agriculture, causing supply side shortages, fueling inflation further. So, the most
effective way of prices, ploughing a larger share of the consumer spends back to the
farmer. First, we need to lower transaction costs. The Agricultural Produce Market
Committee Acts mandate all farm produce should be brought to mandis for farmer pays
to transport his produce over long distances, before knowing the price at which his
produce would be sold, or whether any other market would have paid a better price.
The journey from farm to consumer involves multiple levels of transportation, handling
expenses, commissions of agents and a mandi cess, adding nearly 20% cost to food
prices. This absurdity was acknowledged years ago, and a new Model APMC Act
recommended by the Centre in 2003.

This Model Act must be implemented in all states. Unless farmers have the freedom to
sell at farm-gate or other transparent platforms directly to buyers, transaction costs will
remain high and drive consumer prices higher. Next, we need to cut wastage.
Anywhere from, 5% to 40% of food is wasted along the chain, depending on the
perishability of the crop and the season. First, market instruments must empower
farmers to produce as per tomorrow’s demand, rather than be guided by yesterday’s
prices. If the Forward Contracts Regulation Act is amended to permit trading in options,
farmers are assured of a minimum price when sowing, based on future projections
simulated by a market consensus. This will align production volumes to future demand
conditions and minimize wastage.

1. What has been the overall effect of the various measures taken to combat food
inflation?

1. Such measures have successfully stabilized prices of food items for a longer
period
2. Such measures have proved ineffective in the long run, and the prices have gone
up.
3. Such measures could provide only a short-lived relief
d. Only b) and c)

707
2. What prompted the Centre to bring about a new Model APMC Act? Select the most
appropriate option.

1. The earlier version of the APMC Act forced the farmers to bear huge
transportation cost
2. The APMC Act provided that every farmer had to sell his produce only in
mandi and that also through agents.
3. APMC Act was not acceptable to farmers, and on several occasions, they
had expressed their resentment against the said Act.
4. The APMC Act could not provide relief to farmers, rather it led the
food prices to costlier by 20%.

3. Which of the following statements is contrary to the facts mentioned in the given
passage?

1. To contain food inflation the consumer prices should be lowered.

2. Market instruments must empower farmers to produce as per yesterday’s
demand.
3. The new Model of APMC Act was recommended by the centre to lower the
transaction cost.
4. Un remunerative prices discourage investment in agriculture resulting into supply
side shortage

4. Choose the word/group of words which is most similar in meaning to the word/group
of words printed in bold as used in the passage.

Absurdity

a. Logic b) Wisdom c) Folly d) Seriousness

5. Choose the word/group of words which is most similar in meaning to the word/group
of words printed in bold as used in the passage.

Virtual
a. Real b) Practical c) Authentic d) Actual

Practice Set 5
India’s external debt profile appears similar to that of other major market economies.
But its short-term external debt stock is now higher than countries such as Brazil and
Russia (in terms of percentage of GDP), according to Taimur Baig and Kaushik Datta,
economists at Deutsche Bank. India’s share of short-term debt relative to the stock of
total external debt is also higher than other emerging market economies, with the
exception of Turkey, they say. Though short-term debt was contained in FY 14, it was
largely due to a slowdown in imports and may again rise once there is a rebound in
growth and imports pick up. Some economists point out that since GDP is expressed
708
in dollar terms, a weak rupee translates into a lower GDP number and hence, a lower
ratio could be misleading. However, the composition of long-term debt which is
reckoned to be durable and ‘safe’ is also worrisome. While the share of almost risk-
free sovereign, multilateral and bilateral credit has reduced significantly over the years,
it is private corporate sector debt and ‘retail’ component in terms of NRI deposits that
has swelled over the years. Proceeds from the FCNR (B) swap and overseas
borrowing schemes were, in fact, the main contributors to the $31.2 bn increase in
external debt in FY 14, which were facilitated by the Reserve Bank to stabilise the
Indian currency. “NRI deposits do not pose material risks (as they are generally rolled
over).But the increase in the share of external commercial borrowings exposes the
domestic corporate sector significantly to external shocks, including adverse exchange
rate movements,” says Samiran Chakrabarty, Chief India Economist, Standard
Chartered Bank. Every year about $20 bn is scheduled for repayment. The amount
may not seem alarming, but the risk arises if there is a global liquidity squeeze. The
recent trouble in Iraq has added another dimension to external sector woes, which is
that the reduction in trade deficit in FY 14 may reverse again. “Already struggling with
a record low growth, high inflation, a weak currency, low manufacturing growth and
possibility of sub-normal monsoon, the threat of oil supply shock and the resultant
increase in prices add to the risks faced by the country, which could hamper India’s
envisaged improvement in economic growth in FY 15,” say Madan Sabnavis and
Kavita Chacko of Care Ratings. If crude price risks persist, the current account deficit,
which was contained in 201314, could deteriorate further and also add to pressure on
the rupee. Care Ratings has projected a CAD for the year at 2.5% of GDP, assuming
stable crude oil prices and a recovery in industrial production. Higher persistent crude
prices would upset this calculation.

1. Which of the following statements is contrary to the facts mentioned in the given
passage?

1. In FY 14, short term debt was contained due to slowdown in imports.

2. Short term debt is directly proportional to the quantum of imports.
3. A weak rupee translates into a lower GDP number
4. Private corporate sector debt has decreased over the years

2. What is/are the reasons of the author being apprehensive about India’s improvement
in economic growth in FY 15?

1. The recent Iraq crisis may lead to reduction in trade deficit in the current financial
year
2. The possibility of sub-normal monsoon
3. High inflation and low manufacturing growth
4. All of the above

709
 3. Choose the word/group of words which is most similar in meaning to the word/group
of words printed in bold as used in the passage.

Contained

a. Neglected b) Accommodated c) Controlled d) Excluded

4. Choose the word/group of words which is most similar in meaning to the word/group
of words printed in bold as used in the passage.

Reckoned

a. Nullified b) Abandoned c) Started d) Considered

5. Choose the word/group of words which is most similar in meaning to the word/group
of words printed in bold as used in the passage.

Envisaged

a. Anticipated b) Amazed c) Doubted d) Discarded

Practice Set 6
The first budget of the new administration needed to focus on two key macro problems
– a path to fiscal consolidation and a clear signal for structural reforms – to boost the
long run growth trajectory of the economy. The budget delivers on both counts. On the
fiscal deficit, the new government has continued from where the previous
administration left in laying out a path and a commitment to reducing the deficit to 3%
of GDP by FY 17. On the structural reform path, there was a clear focus on boosting
labour-intensive manufacturing and growth. The excise duty cuts for food processing
and footwear industries, creation of SEZs, single window clearance, tax deductions for
investments, reforms to the Apprenticeship Act and Rs.10,000 Crore as venture capital
for SMEs were all small steps in that direction. While the fiscal path is admirable, it also
may be too aggressive. It may be difficult to get a 20% increase in tax revenues in a
year when growth is likely to remain below 6%.The assumption of service tax revenues
growing by 40% may be a tad optimistic. Further, the 3G telecom privatisation proceeds
of Rs.45,000 Crore also look ambitious. To achieve the government’s medium-term
targets will not be easy. First, we would have preferred a more realistic and gradual
approach to consolidation. Taking an extra year to reach the 3% deficit target (i.e., by
FY 18 instead of FY 17) might be more realistic and would not compromise macro
stability. Second, there is an urgent need for a return to fiscal rules and the FRBM Act,
with due sanctions, as the Economic Survey argues. Without it, and despite the
medium-term path laid out in the budget, there may be an incentive to pause on fiscal
consolidation, as happened in FY 09 and was witnessed through FY 12.More than 80
countries follow some sort of a fiscal rule and have found them very useful in imposing
fiscal discipline. Third, if consolidation is based on increasing the tax base, then further
erosions could be avoided. In this regard, the increase in income tax exemption limits
710
further reduces an already small tax base. Only 3% of Indians (35 mn) pay income tax
compared with more than 20% of Chinese and over 45% of Americans. The strategy
that China followed was to not raise Income tax thresholds with rising incomes to
increase the base further. If the government consistently raises the threshold limits, it
would be difficult to expand the tax base. Fourth, tax administration could be improved
by having an independent revenue service, with its own budget and autonomy in hiring
staff. As the government implements its revenue strategy, autonomy and reforms in
administration could be potentially very helpful. Fifth, a road map for reducing
subsidies, particularly the large fertiliser subsidy, can give greater credence to the
consolidation path. The budget marks a very good beginning in terms of signaling a
commitment to fiscal discipline and structural reforms. While the strategy seems to
improve GDP growth and, thereby, reduce fiscal deficit through revenue buoyancy,
such a strategy is fraught with risks. We think that to meet the consolidation path
requires a clear set of rules, measures to broad base the tax system and a road map
to reduce subsidies. This budget lays out the overall vision.

1. Which of the following statements is not based on the facts mentioned in the given
passage?

1. It will be difficult to get a 20% increase in income tax revenue if the growth remains
below 6%.
2. It will be difficult to achieve government’s medium-term targets.
3. The new government has committed to reducing the fiscal deficit to 3% of GDP
by FY 17.
4. Among India, China and America, the highest number of taxpayers live in
America.

2. What is being done by the government for structural reform?

1. Special attention was paid on the growth of labour-intensive manufacturing.

2. Excise duty cut for food processing and footwear industries was allowed
3. SEZs are to be created
4. All of the above

3. What is/are the prerequisite(s) to meet the consolidation path? Give your
answer in the context of the given passage.

1. More and more people should be brought under the net of income tax.
2. A blueprint should be prepared to reduce subsidies. An independent,
autonomous body with an authority to inspect the functioning of income tax
department should be brought into existence.
3. Only a) and b)

711
 4. Choose the word/group of words which is most similar in meaning to the word/group
of words printed in bold as used in the passage.

Erosion

a. Destruction b) Deterioration c) Strengthening d) Consumption

5. Choose the word/group of words which is most similar in meaning to the

word/group of words printed in bold as used in the passage.

Buoyancy
a. Elasticity b) Snap c) Rigidity d) Resilience

Practice Set 7

The RBI orders a moratorium when a bank’s financial stability is threatened.

Depositors face some restrictions on withdrawing money from their accounts during
this period. Currently the restriction is confined to premature withdrawal of FDs in case
of Kapol Bank. Customers can still withdraw money from their savings and current
accounts. However, the Banking Regulation Act has provisions for relief to customers
facing a financial emergency. “Banks’ administrative board can approach the RBI with
a plea for relaxing the withdrawal limits in case of account holders such as those who
have saved or deposited money for their medical treatment or educational purpose and
pensioners,” says VN Kulkarni, chief credit counselor with the Bank of India backed
Abhay Credit Counseling Centre. Since one cannot do much after the bank gets into
trouble or the RBI comes into the picture, it would be wise to take some precautions.
“Depositors need to be selective not only in choosing the bank, but also in depositing
the amount using different combinations,” says Kulkarni. For instance, you can
maintain the first deposit in your name, held jointly with your spouse or children.
Similarly, the second joint FD could be created with your wife as the first holder. This
will help you benefit from the deposit insurance cover extended to retail depositors.
Currently, deposits are insured upto Rs.1 Lakh per bank, and not per branch of the
same bank. You can also look at maintaining FDs in more than one bank to spread out
the risk. However, this may not be feasible for some individuals. For instance, a retiree
who wishes to invest her huge retirement corpus in FDs. “It is not feasible to split a
huge amount of, say, Rs.50 Lakh into 50 deposits with different banks. Senior citizens
have to strike a balance between convenience, risks and higher returns that some of
the smaller banks offer,” says Suresh Sadagopan, certified financial planner and
founder, Ladder. Financial Advisories. He recommends diversification by investing in
fixed income options like company FDs, non- convertible debentures as also more
secure alternatives such as tax-free bonds and senior citizens savings scheme, which
offers an interest rate of 9.2%. You must also evaluate the bank’s credentials carefully
before parking your money in it. “While selecting the bank, you need to ascertain its
gross NPAs. It should be not higher than 5%. Similarly, ensure that your bank has

712
adequate capital as prescribed by the regulators,” says Kulkarni. “That is, minimum 9%
of risk weighted assets, and at least 12%, in case of cooperative banks.” You will find
this information in the balance sheets of banks.

1. Which of the following is not definitely true with respect to Kapol Bank?

1. At present, premature withdrawal of FD cannot be allowed.

2. Customers of this bank have been allowed withdrawal of money from their CASA.
3. There are no restrictions on withdrawal except of premature fixed deposits.
4. It is a private sector bank

2. Find the statement which is not based on the facts mentioned in the passage.

1. Under certain circumstances, account holders facing financial emergency can

be allowed withdrawal of money beyond withdrawal limit as per the provisions
laid down in the Banking Regulation Act.

2. When the bank gets into trouble it is better for a depositor to be selective
in both choosing the bank and depositing the amount using different
combinations.

3. When the financial stability of a bank is at stake the central bank orders a
moratorium

4. The central bank has ordered a moratorium on Kapol Bank.

3. Choose the word which is most similar in meaning to the word printed in bold as
used in the passage. Parking

a. Removing b) Depositing c) Stopping d) Walking

4. Choose the word which is most similar in meaning to the word printed in bold as
used in the passage. Picture

a. Scene b) Mainstream c) Portrait d) Role

5. Choose the word which is most similar in meaning to the word printed in bold as
used in the passage.

Diversification

a. Variegation b) Homogenous c) Allocation d) Division

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 Practice Set 8
India’s banking sector may be getting ready for a wave of consolidation as the country
tries to build institutions of world class proportions. Four big state-run banks – State
Bank of India, Punjab National Bank, Bank of Baroda and Bank of India – have already
begun on exercise to identify takeover targets to gain access to franchises that would
augment their capabilities, said three top bankers familiar with the move. The top
managements of the four banks are in the process of preparing a blueprint that would
explain the rationale for absorbing one or two entities, said the people cited above,
none of whom wanted to be named. Employees at these state-run banks are engaged
in the exercise after Finance Minister Arun Jaitley gave the lenders the go-ahead to
decide how they would strategiese to remain relevant in the emerging economic
scenario. “We are hearing from the corridors of finance ministry that there is
seriousness on consolidation of banks,” said an executive from one of the top four
banks. “The sense we are getting is that first there could be merger of at least one SBI
associate bank with SBI to kick off the consolidation process.” Although no names of
likely acquisition targets are being discussed at these four banks, the key conditions
for a smaller bank will be regional, technological and cultural advantages. For instance,
a bank such as Bank of Baroda, which does not have a presence in the East, may
prefer one from that part of the country. State run banks have weakened over the years
as governments have treated them as an organ of the administration and used them
to push their social agenda. Meanwhile, lenders in neighbouring China have acquired
scale while those in India are puny by comparison, giving them little clout in global
markets. The economic downturn, with growth having almost halved from the peak,
has exposed the fault lines in the system. The parlous financial position of the
government has left banks capital starved - the allocation for this year is tiny compared
with the amount needed to meet Basel III standards. And, to access capital from the
market, the state-run banks need a strategy to turn more profitable. Currently, they are
labouring under bad debt on account of companies finding it difficult to repay loans
because of the slump. “Government has made it clear that they will not give any
capital,” said one of the bankers. “Banks that have the capital and the capability to raise
capital could look at acquisitions,” he said, while adding “Nothing has reached the
drawing board. Banks are only doing all kinds of permutations and combinations.”

To be sure, state-run bank consolidation has been discussed for nearly a decade, but
little progress has been made, except for shotgun weddings that were aimed at
rescuing ventures in poor shape. Inertia among banks, cultural issues and fears of
trade union unrest held up any such move. That may now change with the new
government. “There have been some suggestions for consolidation of public sector
banks,” Jaitley said in his July 10 Budget speech. “Government, in principle, agrees to
consider these suggestions.”

A committee set up by the Reserve Bank of India under former Axis Bank Chairman
P.J. Nayak had suggested that the health of state-run banks was poor.
714
To strengthen them, the report said it would be better “either to privatise these banks
and allow their future solvency to be subject to market competition, including through
mergers; or to design a radically new governance structure for these banks which
would better ensure their ability to compete successfully, in order that repeated claims
for capital support from the government, unconnected with market returns, are avoided.
“The market share of the public sector banks is forecast to decline from 80% in 2000
to just over 60% in 2025, Nayak had said. They stack up poorly in many respects
against non-state institutions. For instance, net profit per employee at the new private
sector banks was about four times that of the SBI Group in the year ended March 2013.

1. Which of the following is not true in the context of the passage?

1. Four big state-run banks have begun to identify takeover targets.
2. The finance minister has given free hand to state run banks to make their own
strategy for banking business.
3. The four big state-run banks have already decided the names of some small
banks likely to be taken over

4. According to PJ Nayak Committee report, the state-run banks were not performing
well.

2. Why have banks turned capital starved? Answer in the context of the passage?

1. Because of excessive loans sanctioned to malafide customers

2. Because of bad monetary policy of the RBI
3. Because of the excessive payments towards government sponsored schemes
without appropriate provision for them
4. Because of the dangerous financial position of the government

3. Which of the following is possibly the most appropriate title for the passage?

1. Policy Paralysis of the Central Government

2. The Economic Downturn
3. Union Budget 2014: A Review
4. Consolidation of Banks

4. Which of the following statements regarding the consolidation of state-run banks

is/are true? Answer in the context of the passage.

1. Efforts for consolidation of state-run banks are on for past one decade but
nothing remarkable has come out as yet.
2. The consolidation of state-run banks is a complex task, and it will take some more
years for its completion.
3. Banks are doing all kinds of permutations and combinations, but the result is
cipher.
4. Only a) and b)
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 1. What does the phrase ‘kick off’ mean as used in the passage?
a. Discontinue b) Breakdown c) Smash d) Begin

2. Under the current scenario what do state run banks need to do to access capital
from the market?
1. They should increase lending rate to attract depositors.
2. They should announce handsome returns to depositors.
3. They need a strategy to earn more profit
4. They need to float public shares

Practice Set 9

“My God, it speaks” uttered the Emperor of Brazil and the receiver of the

Telephone slipped from his hand and banged around. At the other end Alexander
Graham Bell was still online. This incident goes back to 1876 when at an exhibition in
Philadelphia, Alexander Graham Bell was giving a demonstration of his new invention.
This strange instrument known as Telephone was to revolutionize life in the years to
come. Bell was born at Edinborough, Scotland. He was a teacher and, was dedicated
to the noble cause of teaching the deaf and the dumb. Due to a severe illness, Bell was
sent to Canada in 1870, where too he got engaged in helping the dumb deaf to hear
and speak. Thereafter, he shifted to the USA but continued with his work by opening
a school for deaf to hear and dumb. Bell was fond of scientific inventions and was ever
engaged in making some machines in his spare time. While at Boston, he tried to
communicate through metal wire. His companion in this work was Watson. One day
while experimenting with this instrument, Bell spoke to Watson standing at a distance.
Watson was taken by a pleasant surprise as he had heard Bell clearly through his
instrument. The instrument was a success and Bell patented it.

Graham Bell had some sterling qualities of head and heart. Apart from being as artist,
he was a kind human being, ready to help the needy. He established an institution for
the deaf and dumb children. He died in 1922 in Canada. The entire northern America
paid him a tribute by hanging up their telephones for a while during his funeral.

1. The teaching activity undertaken by Bell was considered ‘noble’ particularly because

1. There was nobody else in the field of education

2. He was not accepting any salary of that job
3. He was a very famous scientist of his times
4. He was teaching the physically under privileged persons

716
 1. The words uttered by the Emperor of Brazil suggest that it was extremely
a) Angry b) Insulted c) Surprised d) Agitated

iii) What according to the passage was the contribution of invention of phone?
a) Interaction between two persons at some distance was possible
b) Rich people were able to communicate with others
c) Graham Bell could converse with Watson regarding invention through
telephone
d) It revolutionized human life

4. Which of the following made Bell to invent telephone?

1. His activity of teaching

2. His service to the deaf and dumb
3. He kept interest in scientific inventions
4. Encouragement received from Watson

5. Graham Bell made the telephone call of his invention to the Emperor from the
city of

a. Edinborough b) Philadelphia c) Brazil d) Boston

6. Bell had gone to Canada in 1870 for

1. Treating a patient who was seriously ill
2. Helping the deaf and dumb children to hear and speak
3. Undergoing medical treatment for himself
4. Devoting his full time to his invention

Practice Set 10

Though the US prides itself on being a leader in the World community, a recent report
shows that it lags far behind other industrialised countries in meeting the needs of its
youngest and most vulnerable citizens. The US has a higher infant mortality rate, a
higher proportion of low-birth-weight babies, a smaller proportion of babies immunised
against childhood diseases and a much higher rate of adolescent pregnancies. These
findings, described as a “quiet crisis” requiring immediate and far-reaching action,
appeared in a report prepared by a task force of educators, doctors, politicians and
businesspeople. According to the report, a fourth of the nation’s 12 million infants and
toddlers live in poverty. As many as half confront risk factors that could harm their
ability to develop intellectually, physically and socially. Child immunisations are too low,
more children are born into poverty, more are in substandard care, while their parents
work, and more are being raised by single parents. When taken together, these and
other risk factors can lead to educational and health problems that are much harder
and more costly to reverse. The crisis begins in the womb with unplanned parenthood.

717
 Women with unplanned pregnancies are less likely to seek pre-natal care. In the US
80% of teenage pregnancies and 56% of all pregnancies are unplanned. The problems
continue after birth, where unplanned pregnancies and unstable partnerships often go
hand in hand. Since 1950, the number of single parent families has nearly tripled. More
than 25% of all births today are to unmarried mothers. As the number of single parent
families grows and more women enter the work force, infants and toddlers are
increasingly in the care of people other than their parents. Most disturbingly, recent
statistics show that American parents are increasingly neglecting or abusing their
children. In only four years from 1987- 1991, the number of children in foster care
increased by over 50%. Babies under the age of one are the fastest growing category
of children entering foster care. This crisis affects children under the age of three most
severely, the report says. Yet, it is this period – from infancy through preschool years
– that sets the stage for a child’s future.

1. The main focus of the passage is on the plight of

1. Orphaned children
2. Teenage mothers
3. Low birth weight babies
4. None of these

2. Which of the following does not constitute ‘quiet crisis’ in the US as per the task force
report?

1. Lower proportion of new-born babies with normal weight

2. Higher incidence of adolescent girls becoming mothers
3. Lower rate of babies surviving childhood diseases
4. Increasing cases of teenage couples getting divorced

3. Which of the following statements is not true in the context of the passage?

1. In the US, the number of infants living in poverty is about 3 million

2. Only 20% of all the pregnancies in the US are planned
3. The number of children in the US entering foster care has decreased after
1991
4. The number of single parent families today is approximately three times that four
decades ago

1.The number of children born to married mothers in the US is approximately, how

many times the number of children born to unwed mothers?
a) 1.5 times b) 2 times c) 3 times d) 3.5 times

2.The task force report seems to be based on the data pertaining to the period
1. 1950 onwards till data
2. 1987 onwards till data
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 3. 1950-91
4. 1987-91

Practice Set 11

The great fear in Asia a short while ago was that the region would suffer through the
wealth destruction already taking place in the U.S. as a result of the financial crisis.
Stock markets tumbled as exports plunged and economic growth deteriorated. Lofty
property prices in China and elsewhere looked set to bust as credit tightened and
buyers evaporated. But with surprising speed, fear in Asia swung back to greed as the
region shows signs of recovery and property and stock prices are soaring in many parts
of Asia. Why should this sharp Asian turn around be greeted with skepticism? Higher
asset prices mean households feel wealthier and better able to spend, which could
further fuel the region’s nascent rebound. But just as easily, Asia could soon find itself
saddled with overheated markets similar to the U.S. housing market. In short, the world
has not changed, it has just moved placed.

The incipient bubble is being created by government policy. In response to the global
credit crunch of 2008, Policy makers in Asia slashed interest rates and flooded financial
sectors with cash in frantic attempts to keep loans flowing and economies growing.
These steps were logical for central bankers striving to reverse a deepening economic
crisis but there is evidence that there is too much easy money around. It’s winding up
in stocks and real estate, pushing prices up too far and too fast for the undenying
economic fundamentals. Much of the concern is focused on China where government
stimulus efforts have been large and effective, Money in China has been especially
easy to find. Aggregate new bank lending surged 201% in first half of 2009 from the
same period a year earlier, to nearly 51.1 turn on, Exuberance over a quick recovery
which was given a boost by China’s surprisingly strong 7.9% GDP growth in the second
quarter has buoyed investor sentiment not just for stocks but also for real estate.
Former U.S. Federal Reserve Chairman Alan Greenspan argued that bubbles could
only be recognised in hand sight. But investors who have been well schooled in the
dangers of bubbles over the past decade are increasingly wary that prices have risen
too far and that the slightest bit of negative, economic news could knock markets for a
loop. These fears are compounded by the possibility that Asia’s central bankers will
begin taking stops to shut off the money. Rumours that Beijing was on the verge of
tightening credit led to Shanghai stocks plunging 5%. Yet many economists believe
that there is close to a zero possibility that the Chinese government will do anything
this year that constitutes tightening. And without a major shift in thinking, the easy-
money conditions will stay in place. In a global economy that has produced more
dramatic ups and downs than anyone thought possible over the past two years. Asia
may be heading for another disheartening plunge.

1. What does the author want to convey through the phrase “The world has not changed
it has just moved places”?

719
 1. At present countries are more dependent on Asian economies than on the
US economy

2. Economies have become interlinked on account of globalization

3. Asian governments are implementing the same economic reforms as developed

countries
d. None of these

2. Which of the following can be said about the Chinese government’s efforts to revive
the economy?

1. These were largely unsuccessful as only the housing market improved

2. The governments only concern was to boost investor confidence in stocks
3. These efforts were ineffectual as the economy recovered owing to the US market
stabilising
d. These were appropriate and accomplished the goal of economic revival

3. What do the statistics about loans given by Chinese banks in 2009 indicate?
1. There was hardly any demand for loans in 2008
2. The Chinese government has borrowed funds from the US
3. China will take longer than the US to recover from the economic crisis d.
None of these

4. What is the author’s main objective in writing the passage?

1. Illustrating that Asian economies are financially more sound than those of
developed countries
2. Disputing financial theories about how recessions can be predicted and
avoided
3. Warning Asian countries about the dangers of favouring fast growth and
profits over sound economic principles

4. Extolling China’s incredible growth and urging other countries to emulate

it

5. Why does the author doubt the current resurgence of Asian economics?

1. Their economies are too heavily reliant on the American economy which is yet to
recover
2. Central banks have slashed interest rates too abruptly which is likely to cause
stock markets to crash
3. With their prevailing economic conditions, they are at risk for a financial
crisis
720
 4. Their GDP has not grown significantly during the last financial year

Practice Set 12

Delays of several months in National Rural Employment Guarantee Scheme wage

payments and work sites where labourers have lost all hope of being paid at all have
become the norm in many states. How are workers who exist on the margins of
subsistence supposed to feed their families? Under the scheme, workers must be paid
within 15 days, failing which they are entitled to compensation under the Payment of
Wages Act – upto Rs.3000 per aggrieved worker. In reality, compensation is received
in only a few isolated instances. It is often argued by officials that the main reason for
the delay is the inability of banks and post offices to handle mass payments of NREGS
wages. Though there is a grain of truth in this, as a diagnosis it is misleading. The ‘jam’
in the banking system has been the result of the hasty switch to bank payments
imposed by the Central Government against the recommendation of the Central
Employment Guarantee Council which advocated a gradual transition starting with
villages relatively close to the nearest bank. However, delays are not confined solely
to the banking system. Operational hurdles include implementing agencies taking more
than fifteen days to issue payment orders, viewing of work measurement as a
cumbersome process resulting in procrastination by the engineering staff and non-
maintenance of muster rolls and job card etc. But behind these delays lies a deeper
and deliberate

‘backlash’ against the NREGS. With bank payments making it much harder to
embezzle NREGS funds, the programme is seen as a headache by many government
functionaries the workload has remained without the “inducements”. Slowing down
wage payments is a convenient way of sabotaging the scheme because workers will
desert NREGS worksites.

The common-sense solution advocated by the government is to adopt the business

correspondent model. Where in bank agents will go to villages to make cash payments
and duly record them on handheld, electronic devices. This solution is based on the
wrong diagnosis that distance separating villages from banks is the main issue. In order
to accelerate payments, clear timelines for every step of the payment process should
be incorporated into the system as Programme Officers often have no data on delays
and cannot exert due pressure to remedy the situation. Workers are both clueless and
powerless with no provision for them to air their grievances and seek redress. In
drought affected areas the system of piece rate work can be dispensed with where
work measurement is not completed within a week and wages may be paid on the
basis of attendance. Buffer funds can be provided to gram panchayats and post offices
to avoid bottlenecks in the flow of funds. Partial advances could also be considered
provided wage payment is meticulously tracked. But failure to recognise problems and
unwillingness to remedy them will remain major threats to the NREGS.

721
 1. What impact have late wage payments had on NREGS workers?

1. They cannot obtain employment till their dues are cleared

2. They have benefited from the compensation awarded to them
3. They have been unable to provide for their families

4. None of these

2. Which of the following factors has not been responsible for untimely payment of
NREGS wages?

1. Communication delays between agencies implementing the scheme

2. Improper record keeping
3. Behind schedule release of payments by banks
4. Drought conditions prevalent in the country

3. What has the outcome of disbursing NREGS wages through banks been?
1. Theft of funds by administration officials responsible for the scheme has
reduced

2. Increased workload for local government officials

3. Protests by workers who have to travel long distances to the nearest bank to
claim their wages
4.Time consuming formalities have to be completed by workers

5. To which of the following has the author attributed the delay in wage payments?

1. Embezzlement of funds by corrupt bank staff

2. Lack of monitoring by the Central Employment Guarantee Council
3. An attempt to derail the NREGS by vested interests

4. Overworked bank staff deliberately delay payments to protest against extra work

6. Which of the following can be considered a deficiency in the NREGS?

1. Lack of coordination among Programme Officers

2. Local officials are unaware of correct operational procedures
3. Workers have no means of obtaining redressal for untimely wage payments
4. Disbursing wages through banks instead of readily accessible post offices
Practice Set 13

722
On attending a conference, which focused on the role of the services sector in Indian
economy I was amazed. The conference gave a very interesting perspective on the
role of the service sector in the growth of Indian economy in relation to growth rates in
agriculture and industry. The current situation in India is that the growth rate of services
has overtaken both agriculture and industry and is now contributing to more than 50%
of GDP. The services sector has the highest growth rate and is the least volatile sector.
Growth is particularly marked in public services, IT and financial services. In some
areas, the growth rate of the services sector is 40-50% due to increased use of mobile
technologies. India, therefore, has, a services-oriented economy. It hasn’t followed
traditional growth models as in China. However, in the process of doing so it has
skipped the manufacturing stage and has jumped straight from the agriculture stage to
service stage which is also the main reason for the expansion of the service sector. In
fact, the situation now is such that the growth in the service sector can and will support
in the agriculture and industrial sectors. However, the only setback for Indian economy
is the lack of growth in the manufacturing sector, which causes dependence on other
countries, which is not so desirable in terms of job creation and increased prosperity.
Population is also a major concern of the Indian economy. As the population of India
grows so also does the number of dependents in the population in both the lower and
higher age groups. In such a scenario of increasing population, especially in an
economy which still recovering from crisis, growth becomes difficult. For such an
economy to grow it has to invest. Currently, the public sector invests more than it saves.
The household sector saves in surplus, but it is not increasing so it cannot continue to
support private and public sectors. There is a massive need to spend on agriculture
and infrastructure development of the country. Apart from that health and education
should also be the priority of the government particularly the education of women in
order to reduce the birth rate.

1. Choose the word which is most opposite in meaning to word given in bold as used
in the passage.

Volatile

a) Erratic b) Impatient c) Stable d) Solid

2. What does the author mean by the statement, “… a growth window’ for India will
open.”?

1. In the coming years, the Indian economy will grow as the service sector of the
country would be booming due to the focus of the government in that sector.
2. In the next two decades, Indian economy will have an opportunity to grow
as the working population of India will be high as compared to the
dependent population.

723
 3. There would be only a small period of time in which the economy of India has to
grow and if it fails to do so it will never be able to recover from the economic
downfall.
4. Only upto the next two decades would Indian people be interested in finding jobs
in the country beyond which they would search for jobs abroad thus hampering
the growth of Indian economy.

2. Choose the word which is most similar in meaning to the word given in bold as
used in the passage.

Prerequisites

a) Requirements b) Instincts c) Prohibitions d) Acknowledgements

3. What does the author mean by the statement, “to change the bad sectors to good
sectors.”?
1. In order to deal with the problem of poverty it is important to distinguish between
good and bad sectors and encourage people to start searching for jobs in the good
sectors.
2. The government should make efforts to improve the sectors that are not
functioning well in order create greater job opportunities in those sectors and in
turn eradicate poverty
3) Poverty alleviation is possible only if the government understands the
importance of good sectors and provides it with necessary opportunities

4) The bad sectors of the country should be identified, and such jobs should be
outsourced to other underprivileged countries in order to eradicate poverty from
those countries.

4. Choose the word which is most similar in meaning to the word given in bold as
used in the passage?

Perspective

a) Viewpoint b) Prospect c) Attitude d) Agreement

5. Which of the following is not true as per the passage?

1. India has not followed the conventional model of growth and has moved directly
from the agriculture sector to the service sector.
2. The service sector of the country is yet to make a mark on the IT and financial
sectors of the country.
3. With availability of labour and growth in human skills, the service sector

724
 of Indian economy is booming limitlessly as there is no restriction on movement
of labour.

4. India has become self-reliant and does not have to depend on other countries
because of the development in the manufacturing sector

6. According to the author, which of the following can be said about the growth of
service sector in India?

1. India is essentially an agrarian economy and is not yet ready to shift focus
from agriculture sector to service sector
2. The expansion of service sector in India was seen mainly because of the
growth in the agricultural sector
3. Indian economy cannot run only on the basis of service sector i.e., without
further development in the agriculture and the industrial sector
4. The growth of service sector in India is facilitated by the improvement
in technology

Practice Set 14

The wakeup call that China represents to India is not limited to its showpiece urban
centres or that New Delhi hopes India will experience the benefits that the Olympic
Games have brought to Beijing. More pertinent is the comparison of the agricultural
sectors of the two countries. Why and how has China managed to outstrip India in
agriculture when 25 years ago the two countries were on par on most parameters?
Both have traditionally been agrarian economies and over half their populations
continue to depend on the land for their livelihood. With large populations and histories
of famine, India and China share concern on issues such as food security, however,
while India’s agricultural sector is projected to grow by about 2.5% this year – a slide
from the previous year’s growth. China’s has been steadily growing at between 4% and
5% over the last fifteen years. The widest divergence between India and China is in
the profitable horticultural sector with the production of fruits and vegetables in China
leaping from 60 million tonnes in 1980 compared to India’s 55 million tonnes at the
same time, to 450 million tonnes in 2003 ahead of India’s corresponding 135 million
tonnes. China’s added advantage lies in the more diversified composition of its
agricultural sector with animal husbandry and fisheries which account for close to 45%
of growth compared to 30% for India. According to the latest report by Economic
Advisory Council the traditional excuses for India’s substandard is placed favourably
when compared to China in terms of quantity of arable land, average farm size, farm
mechanization etc. The reasons for China having outperformed India are threefold :
technological improvements accruing from research and development (China has over
1000 R and D centres devoted to agriculture), Investment in rural infrastructure and
an increasingly liberalised agricultural policy moving away from self-sufficiency to
leveraging the competitive advantage with a focus on “efficiency as much as equity”.
725
Investment in rural infrastructure, roads, storage facilities, marketing facilities are also
crucial but government support in India has been mainly been through subsidies, not
investment. There has been much debate about subsidies and their utility, the opposing
view being that subsidies are against the market reforms and distort the market as well
as reduce resource efficiency. In contrast to the 2046 applications for the registration
of new plant varieties in China over the past few years data reveals that despite India
having the largest number of agricultural scientists in the World India’s current research
track record is abysmal, equivalent to what China achieved in the 1908s. Far from
developing new strains, the number of field crop varieties fell by 50% between 1997
and 2001 despite the fact that there was sharp and sustained increase in funding. One
reason is that majority of the budget is eaten up by staff salaries with only 3% being
allotted for research. In contrast, most agricultural research centres in China must use
Central Government funding purely for research. Funds relating to salaries and other
administrative incidentals must be generated by the centres themselves. The centres
and scientists are thus, encouraged to engage in joint ventures with private sector
company to form commercial signoffs from their research. In fact, research staff is now
being hired on a contract basis with pay based on performance and salaries raised
proportionately for those who perform well. India needs to learn from China’s example
and adopt a pragmatic approach if it has to meet its targets of the Eleventh five-year
plan.

1. What has been the major area of difference in the development of the agricultural
sectors of India and China?

1. Quantity of arable land in China is far greater than in India

2. Food security is not a concern for China as the country is basically self sufficient
3. China has experienced substantial growth in production in allied agricultural
activities like horticulture
4. India’s agricultural sector is too diversified, so it is difficult to channel funds for
development

2. How is Chinese agricultural research facilities governed?

1. Salaries of staff are linked to performance which hampers productive research

2. Their funding comes from the government alone to prevent private companies
from manipulating the direction of their research
3. A fixed proportion of government grants is allotted to be utilized for administrative
incidentals which cannot be exceeded
4. None of these

3. Which of the following is an advantage that India holds over China with respect to
the agricultural sector?

726
 1. Lack of diversification of the agricultural sector
2. Superior technology and farming practices
3. Greater prevalence of farm mechanisation

4. Provision of fertilizer and power subsidies

4. Why was there a drop in development of new crop varieties for five years from 1997?

1. Government funding for research fell during that period

2. Funds were diverted during this period to agricultural mechanisation
3. The private sector was not allowed to fund research
4. None of these

5. Which of the following is not true in the context of the passage?

1. Agricultural status of China and India was equivalent a quarter of a century ago
2. India’s current economic growth rate is half that of China
3. China is traditionally an agrarian economy
4. Agricultural research in India is inadequate

Practice Set 15

It is difficult to imagine the extraordinary number of controls on Indian industry before

1991. Entrepreneurs needed permission to invest and could be penalized for
exceeding production capacity. Even with the given investment capacity they had,
entering certain areas was prohibited as these were reserved for the public sector. If
they had to import anything, they required licences. To get these licenses was tough,
they had to persuade a bureaucrat that the item was required but even, so permission
was unavailable if somebody was already producing it in India. The impact of the
reforms was not instantaneously and permanently wonderful. In India’s case it began
to show after about a year and a half. After 1993 there came three years of rapid
industrial growth of about 8% or so. But, in the second half of the 90s, there had an
impact on the Indian industry. But, in the last few years there has been a tremendous
upturn. With the rise of investment industrial growth has reached double digits or close.

However, even during the period when industrial growth was not that rapid, there is a
lot of evidence that positive results of the reforms were seen. There were companies
that didn’t look at all internally but instead performed remarkably in the highly
competitive global market. For instance, the software sector’s performance was
outstanding in an almost totally global market. Reliance built a world class refinery.
Tatas developed an indigenously designed car. The success of the software sector has
created much higher expectations from and much higher confidence in what Indian
industry can do. On the government’s side it’s a vindication that liberalization of both

727
 domestic and external policies, including the increased inflow of Foreign Direct
Investment, has created an environment in which industry can do well, has done well
and is preparing to do even better. What they need is not sops, but good quality
infrastructure. For the 11th plan an industrial growth rate of around 12% is projected. It
will have methods of developing infrastructure, which will close the deficit. This can be
done through increased investment in public sector for those infrastructure areas,
which cannot attract private investment, and through efforts to improve private
participation in different ways of public private participation.

In the early stages of reforms, the liberalization of trade policies and a shift to a market
determined exchange rate had the effect of removing constrains on agriculture in terms
of depressed prices. The removal of protection on industry helped to produce a more
level playing field, because the earlier system was extremely unfair to agriculture. The
lesson to be learnt from the reforms process is to persevere in reforming the strategic
parts of the economy, which will lead to even higher growth rate. India has to do better
than its current average growth rate of 8% and ensure that benefits from this higher
growth go beyond industry and urban areas and extend to agriculture.

1. Which of the following factors was responsible for the fall in India’s growth rate in the
late 1990s?

1. The implementation of economic reforms was too rapid

2. It was expected after achieving a high growth at 10%
3. There was a slowdown in the global economy

4. There were sanctions against East Asian countries by WTO

2. Which of the following can be said about the reforms of 1991?

1. They benefited Indian industry immediately

2. All Indian companies began to focus on indigenous development instead of
looking for opportunities abroad
3. They were targeted only at the software sector
4. They encouraged Foreign Direct Investment in India

3. What was the impact of the flourishing Indian software sector?

a) Other companies were unable to be competitive in the global market

b) It fuelled expectations of a good performance from the Indian economy

c) Growth rate rose to 12%
d) It created cutthroat competition among software companies which would hinder
the sector in the long run
728
4. Why was investment by private business disallowed in certain sectors?

1. To ensure proper development in these sectors

2. To prevent corruption in key sectors like infrastructure
3. To ensure steady not inconsistent growth in key sectors
4. To protect the interest of the public sector in these sectors

5. What is the author’s opinion about the government’s decision to liberalise the
economy in 1991?

1. The timing was wrong since the economy experienced a slowdown in growth rate
2. It led to a focus on software and other sectors were neglected
3. Foreign companies took advantage of the new policies and exploited certain
sectors
4. It was beneficial because it created confidence in the Indian economy

6. How did software companies deal with slow industrial growth in an open

Indian economy?

1. They focused on strengthening their position in the domestic market

2. They campaigned for infrastructure development
3. They diversified into different sectors
4. They targeted global markets

7. What does the author recommend ensuring that the industrial sector continues to
perform better?
1. Subsidies should be provided in infrastructure development
2. Government should keep control of and monitor all infrastructure projects
3. Wipe out any infrastructure deficit by transferring responsibility of these
projects to the private sector
4. Ensure a combination of public and private sector involvement in
developing infrastructure

8. How did the economic reforms affect the agriculture sector?

1. Constraints in agriculture increase
2. Prices were depressed because there was a removal of protection on the sector
3. Agriculture growth rate doubled
4. A system of market determined exchange rate was introduced

729
 Practice Set 16

Rural India faces serious shortages – power, water, health facilities, roads, etc. these
are known and recognized. However, the role of technology in solving these and other
problems is barely acknowledged and the actual availability of technology in rural areas
is marginal. The backbone of the rural economy is agriculture, which also provides
sustenance to over half the country’s population. The ‘green revolution’ of the 1970s
was, in fact, powered by the scientific work in various agricultural research institutions.
While some fault the green revolution for excessive exploitation of water and land
resources through overuse of fertilizers, it did bring about a wheat surplus and
prosperity in certain pockets of the country. In rural India today, there is a dire
inadequacy of both science (i.e., knowledge) and technology (which derives from
science and manifests itself in physical form). The scope to apply technology to both
farm and non-farm activities in rural areas is huge, as are the potential benefits. In
fact, crop yields are far lower than what they are in demonstration farms, where science
and technology are more fully applied. Technologies that reduce power consumption
of pumps are vital, unfortunately, their use is minimal since agricultural power is free or
largely subsidized. Similarly, there is little incentive to optimise through technology or
otherwise water use, especially in irrigated areas ( a third of total arable land), given
the water rates, post-harvest technologies for processing and adding value could
greatly enhance rural employment and incomes but at present deployment of
technology is marginal. Cold storage and cold chains for transportation to market is of
great importance for many agricultural products particularly, fruits and vegetables, but
are non-existent. These are clearly technologies with an immediate return on
investment, and benefits for all, the farmer, the end consumer, the technology provider.
However, regulatory and structural barriers are holding back investments. Power is a
key requirement in rural areas, for agricultural as well as domestic uses. Technology
can provide reliable power at comparatively low cost in a decentralized manner.
However, this needs to be upgraded and scaled in a big way, with emphasis on
renewable and non-polluting technologies, Reliable and low cost means of transporting
goods and people is an essential need for rural areas. The bullock-cart and the tractor-
trailer are present vehicles of choice. Surely, technology can provide a better, cheaper
and more efficient solution? Information related to commodity prices, agricultural
practices, weather etc. are crucial for the farmer. Technology can provide these
through mobile phones, which is a proven technology however the challenge to ensure
connectivity remains. Thus, there is a pressing need for technology as currently
economic growth though skewed and iniquitous has created an economically
attractive market in rural India.

1. Which of the following is not an impact of the green revolution?

1. Wealth creation restricted to creation areas

2. Damage caused to land by inordinate use of fertilizers
3. Application of scientific research only in demonstration farms
4. Over utilization of water resources
730
2. Why is there no motivation to reduce power consumption?

1. Freely available sources of energy

2. Government will have to subsidise the cost of technology required to reduce
power consumption
3. Power distribution has been decentralized
4. None of these

3. What effect will the implementation of post-harvest technologies such as cold

storages have?

a) Regulatory procedures will have to be more stringent.

b) Prices of commodities like fruits and vegetables will fall since there is
no wastage from spoilage

c) Incomes of rural population will fall

d) Pollution of the environment

4. The author’s main objective in writing the passage is to

1. Censure scientists for not undertaking research

2. Criticise farmers for not utilising experimental low cost post harvesting technology
3. Exhort the government subsidise the cost of utilising technology
4. Advocate broadening the scope of research and use of technology in
agriculture

5. Choose the word which is most nearly the same in meaning as the word printed in
bold as used in the passage.

Marginal
a) Austere b) Severe c) Detrimental d) Insignificant

Practice Set 17

Giving loans to impoverished women to make ceramics or to farmers to buy milk cows
were not seen as great business. Microfinance was an industry championed by
antipoverty activists. Today it is on the verge of a revolution, with billions of dollars
from big banks, private equity shops and pension funds pouring in, driving growth of
30% to 40% this year alone. In 1998, a non-profit microfinance organization in Peru,
converted into a bank (called Mibanco). This demonstrated that the poor are good
risks who repay loans on time and getting them together, not only chips away at
poverty but also turns a profit. The success of Mibanco has piqued the interest of
commercial banks, which had previously shunned the country’s poor. Now big banks
731
are going after Mibanco’s clients with low-rate loans and realising it takes special know
how to work with the unbanked are hiring away Mibanco’s staff. But with the
emergence of players who are only out for profit, microfinance schemes could end up
milking the poor. This could happen in countries where lenders don’t have to disclose
interest rates. When a Mexican micro financier went public, revealing its loans had
rates of about 86% annually, the Consultative Group to Assist the Poor criticised it for
putting shareholders ahead of clients. The pressure to turn a profit also forces micro
financiers to change their business models in ways that depart from the industry’s
core mission, to help poor people lead better lives. Such shifts have caused the
average loan size to triple. Moreover, smaller loans being costlier to service, a lower
percentage of loans go to women because they tend to take out smaller sums,
According to CGAP, with the flood of new large entities there is the risk that a large
percentage of cross border funds go to Latin America and Eastern Europe, the World’s
most developed microfinance markets. “The poorest of the World’s poor, who are
predominantly in Asia and Africa get left out,’ says the CEO of the non-profit Grameen
Foundation, which helps develop microfinance institutions.

Segmenting the industry, might be worthwhile if it allows more of the poor to get
access to credit. Multinational corporations could take the top microfinance institutions
to the next level, and the remainder could be the responsibility of development groups
and regional banks. Yet making loans to poor people is hardly a poverty cure. Property
rights and the rule of law matter too. One cannot over idealize what microfinance alone
can do. Most non-profits started with lending simply because local laws prohibited
nonbanks from offering deposit accounts. With an increase in competition and
marketing efforts, poverty alleviation experts are concerned that people will be talked
into loans they wouldn’t otherwise want. For example, organisations like Mibanco are
providing consumer loans. There is nothing wrong with buying. TVs and microwaves
on credit, but certain markets, like Mexico, have been flooded with loans that have
nothing to do with providing capital to aspiring entrepreneurs just increasing
household debt.

1. Why did most microfinance institutions initially provide only credit services?

1. They were unable to compete with the interest rates o offered on deposits by
commercial banks
2. They have to operate purely on a non-profit basis
3. Government restrictions prevented them from offering additional
services

4. To ensure the poor have access to modern necessities like microwaves

2. What was the impact of the non-disclosure of their interest rates by lending
institutions?

732
 1. The Government issued sanctions against such firms
2. Shareholders’ interests were not protected
3. More microfinance institutions were motivated to go public
4. The poor were exploited

3. What is CGAP’s fear with respect to new entities providing microfinance?

1. NGOs will be unable to survive in an environment of cutthroat competition

2. The poor will hesitate to take advantage of credit facilities because of the
formalities involved
3. The poor in the developed world will be overlooked
4. The interests of the most deserving among the poor will be neglected

4. What is the author’s opinion about the competition for customers among micro
financiers?

1. It benefits the poor by providing them with loans they would have otherwise not
had access to
2. It is futile since the poor have to pay high rates of interest on property loans
3. It is not beneficial since firms waste their profits on marketing rather than
helping the poor
4. None of these

5. Choose the word which is most similar in meaning to the word printed in bold as used
in the passage.

Depart
a. Absent b) Retirement c) Divide d) Vary

Practice Set 18

It is difficult to compare countries because various factors such as size, culture, history,
geography, natural endowments, geopolitics and internal polity comes into play. There
are some goals which can be achieved by smaller countries, but sometimes smaller
countries find it difficult to embark upon certain big technological plans even if they
have the funds, because the size of the domestic market is too small. If we consider
the bigger countries, the closest comparison to India is China, though there are many
crucial differences. The Chinese vision is to prepare the country for entry into the ranks
of mid-level developed nations by the middle of the twenty first century. Acceleration
of the nation’s economic growth and social development by relying on advances in
science and technology is pivotal in this.

733
Documents describing the Chinese vision state that science and technology constitute
premier productive forces and represent a great revolutionary power that can propel
economic and social development. It is interesting to note that the main lessons the
Chinese have drawn from their past performance is their failure to promote science and
technology as strategic tools for empowerment. They also point to the absence of
mechanisms and motivations in their economic activity to promote dependence on
science and technology. Similarly, they hold that their scientific and technological
efforts were not oriented towards economic growth. As a consequence, they conclude,
a large number of scientific and technological achievements were not converted into
productive forces as they were too far removed from China’s immediate economic and
social needs. The Chinese vision is therefore aimed at exploiting state of art science
and technology to enhance the nation’s overall power and strength, to improve the
people’s living standards, to focus on resolving problems encountered in large scale
industrial and agricultural production and to effectively control and alleviate pressures
brought on by population, resources and the environment. By the year 2000, China
had aimed at bringing the main industrial sectors upto the technological levels achieved
by the developed countries in the 1970s or 80s, and by 2020 to the level they would
have attained by the early twenty first century. The aim is to bridge the overall gap with
the advanced World. There is a special emphasis on research and development of high
technologies that would find defence applications. Some of these technologies are
critical for improving the features of key conventional weapons. Some technologies
are meant for enhancing future military capabilities. Other efforts are aimed at
maintaining the momentum to develop capabilities for cutting edge defence
technologies. They call for unremitting efforts in this regard with the aim of maintaining
effective self-defence and nuclear deterrent capabilities and to enable parity in
defence, science and technology with the advanced world.

1. Why can’t smaller countries take up big technological planning?

1. Smaller countries lack technological know how

2. Bigger countries do not permit them to do so
3. They have smaller domestic market size
4. They have other goals to achieve

2. What is the goal of China to be accomplished by the middle of 21st Century?

1. To become one of the most developed nations

2. To surpass the level of all middle level developed nations by a good margin
3. To be the most influential superpower
4. None of these

3. What according to the Chinese vision can boost socio-economic development?

734
 1. Minds united with revolutionary powers
2. Premier productive forces
3. A vision which propels development
4. Science and technology

4. Choose the word which is most nearly the same in meaning as the word given in
bold as used in the passage.

Endowments

a) Powers b) Measures c) Habitats d) Gifts

5. Choose the word which is most nearly the same in meaning as the word given in bold
as used in the passage.

Oriented

a) Stated b) Tempting c) Deciding d) Leaning

6. Choose the word which is most nearly the same in meaning as the word

given in bold as used in the passage.

Conventional

a) Functional b) Activist c) Deliberate d) Traditional

7. Choose the word which is opposite in meaning of the word given in bold as used
in the passage.

Crucial
a) Central b) Trivial c) Decisive d) Fundamental

8. Choose the word which is opposite in meaning of the word given in bold as used in
the passage.

Parity

a) Impropriety b) Impartiality c) Inequality d) Inauspicious

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

735
 Financial Results
(Figures in Cr)

Particulars March 2019 March 2020 March 2021 March 2022

Deposits 29,11,386 32,41,621 36,81,277 40,51,534

Advances 21,85,877 23,25,290 24,49,498 27,33,966

Investments 9,67,022 10,46,955 13,51,705 14,81,445

Total Assets 36,80,914 39,51,394 45,34,430 49,87,597

Total Interest Income 2,42,869 2,57,324 2,65,151 2,75,457

Interest Expenses 1,54,520 1,59,239 1,54,441 1,54,749

Net Interest Income 88,349 98,085 1,10,710 1,20,708

Non-Interest Income 36,775 39,006 41,957 40,563

Total Operating Income 1,25,124 1,43,306 1,52,667 1,61,271

Staff Expenses 41,055 45,715 50,936 57,561

Overhead Expenses 28,633 29,459 31,716 35,836

Total Operating Expenses 69,688 75,174 82,652 93,937

Operating Profit 55,436 68,133 71,554 75,292

Total Provisions 54,574 53,645 51,144 36,198

Net Profit 862 14,488 20,410 31,676

CASA % 45.74% 45.16% 46.13% 45.28%

736
 Key Financial Indicators (%)
Statistics of the Bank as on 31.03.2022 (Source Annual Report for FY 2021-22)
Particulars FY 2019 FY 2020 FY 2021 FY 2022

ROA 0.02% 0.38% 0.48 0.67

ROE 0.48% 7.74% 9.94 13.92

Cost/Income Ratio 55.70% 52.46% 53.60% 53.31

Capital Adequacy Ratio (Basel 3) 12.72% 13.06% 13.74 13.83

Cost of Deposits 5.10% 4.94% 4.20% 3.83

Yield on Advances 8.49% 8.72% 7.97% 7.58

Net Interest Margin 2.78% 3.19% 3.26 % 3.12

Gross NPA Ratio 7.53% 6.15% 4.95 % 3.97

Net NPA Ratio 3.01% 2.23% 1.5 1.02

Provision Coverage (Excl AUCA) 61.86% 65.21% 70.88 75.04

Including AUCA 78.73% 83.62% 87.75 90.20

Earnings Per Share (Rs.) 0.97 16.23 22.87 35.49

S.no Parameters Results

1 Banks Registered and Corporate Mumbai
office is located at

2 Number of Customers 46.77 cr

3 Total Branches 22,266

4 No of ATMs, ADWM, CDMs and 65,030

Recycler

5 No of BC Outlets 68,016

6 Transactions through Alternate 95.50%

Delivery Channels (%)

7 Market Share in POS Transactions 15.15%

737
8 Market Share in Debit Card Spends 27.58%

9 No of FI Accounts 14.20cr

10 YOY Growth in Other P Segment 24.39%

Loans

11 No of SAMB Branches 17

12 No of SARB Branches 47

13 Portfolio Covered under SARG 56% (NPA) and 88 % (AUCA)

14 Home Loan Portfolio 5,61,651Cr

15 YOY Growth % in Home Loan 11.49%

Portfolio

16 Market Share of Home Loans 35.30%

amongst ASCBs

17 Auto Loan Portfolio 79,148 Cr

18 YOY Growth % in Car Loan Portfolio 3.70%

19 Xpress Credit Portfolio 54,934 Cr

20 YOY Growth % in Xpress Credit 28.49%

Portfolio

21 Other Personal Segment Loans 3,61,504 Cr

(Other than Home, Auto)

22 YOY Growth % in Other P Segment 24.39%

Loans Portfolio
(Other than Home, Auto)
23 No of Foreign Offices 227 offices in 30 countries

24 No. Of ATMs 65,000

25 Total no of SWAYAM 19,500

738
26 Market Share of Education Loans
amongst ASCBs
27 No of Salary Accounts
28 No of NRI Customers 36 lakhs

29 No of dedicated NRI Branches 450

30 Having Correspondent banking 227 Global Banks

Relationship with

31 No. of Wealth Clients 2,97,246

32 No of Wealth Hubs 172, ( 74 centres)
33 No of E Wealth Center 5 and a Global e wealth Center

34 Global E Wealth Center Kochi

35 Market Share of SBI in ATM Networks 29.80%

36 Market Share in Total ATM 34%
Transaction
37 Total no of POS machine 9.24 lakhs

38 No of SME Customers Over 18 lakhs

39 SME Portfolio Rs 3,05,517 Cr ( 10.83% of Banks Total

Advances)

40 YONO Highlights SIM Binding feature implemented

111.74 million downloads and 48.35+ million
registrations till 31.03.2022
41 Agriculture Portfolio Rs 2,27,000 Cr (1.42 Cr Customers)

42 No of Financial Literacy Centers 341

43 No of RSEITs 152 RSETIs spread across 26 states and 3
union territories
44 Govt Commission 3,713.00 Cr
45 No of CPPCs 16
46 No of Pensioners 52.96 lakh
47 No of CAG Branches 4

48 No of CCG Branches 51

49 Industry Wise NPA Power (8%)

739
 Iron & Steel (2%)
Trading (8%)
Engg (3%)
Roads (7%)
Telecom (8%)
Textile (2%)
Metal & Mines (1%),
Infra Others (5%)
Others (54%)
50 Performance Under NCLT A total of 994 cases were referred to the
NCLT as on 31st March 2022, out of which
773 cases have been admitted. Furthermore,
152 cases have been resolved, including
some high value accounts from RBI’s 1st &
2nd reference lists.
51 No of Staff as on 31.03. 2022 2,44,250
52 No of SBILDs 50
53 No of ATIs 6
54 Which bank is first to test NCMC at SBI
Delhi Metro?

55 First Advanced Tier 3, Data Center Hyderabad

was commissioned at
56 SIVA State Bank Intelligent Voice Assistant
57 Recognitions and Awards “Best Cashd Management and Transaction
Bank in India” by Asian Banker Magazine,
Singapore, under Transaction Finance
Awards 2021.

“Best Trade Finance Provider (India) 2022”

for the tenth consecutive year by Global
Finance magazine.

Gold in the prestigious ET Human Capital

Awards under the category “Excellence in
Creating a Culture of Continuous Learning
and Upskilling”

Kirti Puraskar by the Government of India for

Best implementation of Rajbhasha among
Public Sector Banks.

740
 “Silver Shield in Category 1-PSBs” ICAI
Awards for Excellence in Financial Reporting
“Annual Report of SBI”.

During FY2022, all departments under

Finance vertical were accredited with ISO
9001: 2015 Certification.

SBI - Q2FY23 Results- Highlights

1. Bank has registered its highest quarterly Net Profit of Rs13,265 crores in Q2FY23.
This represents increase of 73.93% YoY.
2. Operating Profit increased by 16.82% YoY to Rs. 21,120 crores in Q2FY23 from
Rs.18,079 crores in Q2FY22.
3. Net Interest Income for Q2FY23 increased by 12.83% YoY.
4. Domestic NIM for Q2FY23 at 3.55%, has increased by 5 bps YoY.
5. Total Deposits grew at 9.99% YoY, out of which CASA deposit grew by 5.5%
YoY.
6. Whole Bank Advances grew by 19.93% YoY, mainly driven by Personal Retail
Advances (18.84% YoY) and Foreign Office Advances (30.14% YoY). Domestic
Advances Growth stood at 18.15% YoY.
7. REH advances crosees Rs 6 lakh crore.
8. SME and Agri loans have registered YoY growth of 13.24% and 11.00%
respectively
9. Net NPA ratio falls below 1%, stands at 0.80% down by 72 bps YoY.
10. Gross NPA ratio at 3.52% down by 138 bps YoY.

11. Provision Coverage Ratio (PCR) is at 77.93%.

12. Slippage Ratio for Q2FY23 stands at 0.33% only, improved by 33 bps YoY
13. Credit Cost for Q2FY23 at 0.28%; improved by 15 bps YoY.
14. Capital Adequacy Ratio (CAR) as at the end of Q2FY23 stands at 13.51%.
15. Share of Alternate Channels in total transactions increased from 95.1% in
H1FY22 to 96.8% in H1FY23.
16. 62% of SB accounts and 45% of retail asset accounts acquired digitally
through YONO.

741
742
 MCQs
Organizational structure

1 On recommendations of _____ Committee and through passing of an Act in

Parliament, Imperial Bank of India was renamed as State Bank of India on 1st
July 1955.
a) Gorwala b) Hilton Young Mission
c) Kelkar d) Ranganathan
2 SBI's Registered Office & Central Accounts Office is in
a) Mumbai b) Kolkata
c) New-Delhi d) Chennai

3 Who is the largest non-promoter shareholder in SBI

a) LIC b) Tata India Ltd
c) IDBI d) ICICI
4 Stressed Assets Resolution Group (SARG), will take over all NPAs with
outstanding of Rs. ___lakhs and above
a) 5 b) 10
c) 20 d) 25
5 Customer Service Committee of the Board is headed by
a) DMD & CCRO b) CHAIRMAN
c) DMD & CFO d) CGM
6 PRESIDENT OF INDIA hold ____ % share of SBI as on 31st March 2022.
a) 51.58 b) 61.23
c) 56.92 d) 41.58
7 SBI General is a joint venture between SBI and
a) Napean opportunities LLP, WP b) G E Capital
Honey Wheat investments Ltd, PI
opportunities and Axis new
opportunism
c) SBI Caps d) Society General
8 As AMFI is to Mutual Fund, C.I.F is to Life Insurance what is it for General
Insurance?
a) CIF b) Specified Person
c) Agent d) Underwriter
9 SBI Cards and Payment Services Ltd is a joint venture with
a) BNP Paribas b) GE Capital
c) IAG Australia d) Carlyle Group
10 SBI Life Insurance is a joint venture between the State Bank of India and .
a) BNP Paribas Cardif b) GE Capital
c) IAG Australia d) Society General

743
11 In SBI General Insurance Company Ltd, SBI owns ____ % of the total capital
as on 31.03.2022.
a) 55,45 b) 75,25
c) 69.96 d) 56,44
12 Which of the following is not a BPR initiative?
a) RMPB b) Grahak Mitra
c) RCPC d) IBCH

13 How many of circle are there in SBI

a) 11 b) 14
c) 16 d) 17
14 SBI Custodial Services Pvt Ltd is established in collaboration with
a) Society General, France b) Banca America
c) FNS, Australia d) McKinsey
15 The Subsidiary launched by SBI for implementation of CSR is
a) SBI Power b) SBI Services
c) SBI Foundation d) None of the above

16 Imperial Bank of India was established in which year.

a) 1806 b) 1921
c) 1855 d) 1905

17 Inspection & Management Audit department at Corporate center is headed

by
a) GM b) CGM
c) DMD d) MD
18 Who is heading ALCO at the Corporate Centre
a) DMD (ALM Dept b) DMD & CFO at Corporate Center
c) MD (Risk Management) d) None
19 The Statutory Auditors submit their report on the annual accounts of SBI to
a) Corporate Centre b) The President of India
c) RBI Governor d) None of these
20 BPR is introduced as per the recommendations of which consultancy
organization
a) Rangarajan Committee b) Narasimham Committee
c) Mckinsey & Co d) TCS
21 The following activities will not be undertaken by TFCPC
a) Issue of Inland LC/BG b) Issue of Forex LC/BG
c) Discounting of export bills d) Finance for trade
22 SBI Exclusif has been renamed as
a) SBI Infra Management b) SBI Foundation
c) SBI Wealth d) SBI Sanjeevani

744
23 Cross Selling Department has been renamed as
a) Customer value Enhancement b) SBI Life Insurance
(CVE)
c) SBI Wealth d) SBI Foundation
24 The stake of SBI group in YES bank is
a) 45 % b) 30 %
c) 50 % d) 51 %
25 SBI Holds__________% in SBI Cards and the rest is held by_____
a) 69.51 %, Carlyle group b) 70 %, Carlyle group
c) 76 %, Society General d) 69.51 %,G E capital
26 SBI holds _____% in SBI Life insurance as on 31.03.2022
a) 63 % b) 51 %
c) 55.48 % d) 63.1 %
27 Net Profit per Employee as on March 2022 (in thousand)
a) 1292.72 b) 456.89
c) 578.98 d) 756.98
st
28 CASA % AS ON 31 March 2022
a) 44.22 % b) 45.28%
c) 43.25 % d) 45.25 %
29 What is the Gross NPA of the Bank as on 31.03.2022 in crores?
a) 227,427 b) 225,427
c) 149,092 d) 112,023
30 Total number of SBI branches as on 31.03.2022
a) 22,291 b) 22,266
c) 22,141 d) 22,114
31 SBI’s share in POS as on 31.03.2022
a) 13.43 % b) 13.91 %
c) 15 % d) 13.46 %
32 SBI’s share of transactions on Alternate Channels as on 31.03.2022
a) 91 % b) 95.50%
c) 92 % d) 95 %
33 SBI’s market share in Debit Cards spending as on 31.03.2022
a) 28.42 % b) 27.58 %
c) 29.42 % d) 29.24 %
34 SBI’s market share in advances as on Sep.2022
a) 19.96 % b) 19.69 %
c) 23 % d) 21.20 %
35 SBI’s market share in deposits as on Sep.2022
a) 24 % b) 23.92 %
c) 22.84 % d) 23.48 %

745
36 Return on equity of SBI as on 31.03.2022
a) 13.92 % b) 8.54 %
c) 7.74 % d) 9.93 %
37 Women employees in SBI as on 31.03.2021
a) 30 % b) 25.29 %
c) 25.92 % d) 25.28
38 SBI employees donated _______ to PM CARES fund to fight COVID-19 on its
66th Foundation day
a) Rs. 75 Crores b) Rs. 50 Crores
c) Rs. 90 Crores d) Rs. 62 Crores
39 SBI’s market share in Home Loans as on June 2022 amongst all ASCB
a) 32.93 % b) 33.30 %
c) 34.50 % d) 35.50 %
40 DSH stands for
a) District sales Hub b) Direct Sales Hub
c) Debt Sales House d) District Sales House
41 As on 31.03.2022 International Banking Group (IBG) has ____number of foreign
offices
a) 233 b) 137
c) 198 d) 227
42 A portal opened by our Bank for financial integration of payments to
suppliers for procurement of every day goods and services
a) GST Portal b) VAT portal
c) VPN Portal d) GeM portal
43 What is the provision coverage ratio as the end of FY 2022?
a) 68.15% b) 87.75%
c) 90.20% d) 82.62%
44 SBI Holds 100% ownership in the following Non- Banking Subsidiaries / Joint
Ventures,
a) SBI Global factors Limited b) SBI Mutual fund Ltd
c) SBI Cards and Payments Pvt Ltd d) SBI Infra Management Solutions
45 SBI has least ownership out of the following Non- Banking Subsidiaries /
Joint Ventures, SBI has least ownership
a) Macquarie SBI Infrastructure b) Oman India Joint Investment Fund
Management Private Limited
c) JIO payments Bank Limited d) C-Edge Technologies Limited
46 SBI holds _________ % in jio payments Bank
a) 30 % b) 33 %
c) 50 % d) 25 %
47 Banks Capital Adequacy Ratio of SBI as on 31.03.2022
a) 13.83 % b) 9.77 %
c) 13.06 % d) 13.47 %

746
48 Net NPA% of SBI as on 31.03.2022
a) 3.23 % b) 2.23 %
c) 1.02 % d) 1.05 %
49 Total No. of Customers of SBI as on 31/03/2021

a) 45.92 Cr b) 45.62 Cr
c) 43.25 Cr d) 49.78 Cr
50 Market share of Auto Loans in SBI?
a) 16.05 % b) 14.40 %
c) 22 % d) 14.04 %

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10
ANS A B A C A C A B D A
Q 11 12 13 14 15 16 17 18 19 20
ANS C C D A C B C B B C
Q 21 22 23 24 25 26 27 28 29 30
ANS D C A B A C A B D B
Q 31 32 33 34 35 36 37 38 39 40
ANS C B B C A A C D B A
Q 41 42 43 44 45 46 47 48 49 50
ANS D D C D C A A C A C

747
 Financial Results, Policy Guidelines & Others

1 Total deposits as at the end of financial year 31.03.2022 stands at

a) Rs.32,41,621 crores b) Rs 37,06,344 crores

c) Rs.39,11,386 crores d) Rs.40,51,534 crores

2 Total advances as at the end of financial year 31.03.2022 stands at

a) Rs 27,33,967 crores b) Rs.23,94,409 crores

c) Rs.24,85,877 crores d) Rs.23,25,290 crores

3 Net profit for the year ended 31.03.2022 is

a) Rs.31676 crores b) Rs.24,488 crores

c) Rs.20,891 crores d) Rs.19,950 crores

4 SBI’s Gross NPA level as at the end of Mar 2022

a) 3.97 % b) 5.73%

c) 6.15% d) 7.53%

5 SBI’s Net NPA level as at the end of Mar 2022

a) 1.81% b) 1.73%

c) 1.02 % d) 2.23%

6 Expenses to Income (Operating Expenses to Total Net Income) Ratio for FY

2022 was

a) 50.18% b) 53.31%

c) 49.13% d) 52.46%

7 Profit Per employee (`in 000) for FY 2022 was (in ‘000)

a) 579 b) 470

c) 1297 d) 511

8 Capital Adequacy Ratio (Under BASEL II) of State Bank of India stood at _____
at the end of March 2022.

748
 a) 13.83 % b) 13.12%

c) 12.79% d) 13.94%

9 Total number of branches in SBI as on 31.3.2022

a) 22,141 b) 22,266

c) 22,986 d) 25,456

10 Market Share Deposits and Advances as on Sep-22

a) 24%, 23% b) 22.84%, 19.69%

c) 15.86%, 22.76% d) 24.92%, 32.55%

11 What is the Market share of SBI in POS for FY 2021-22

a) 15 % b) 33.33%

c) 13.43% d) 18.50%

12 What is the Share of Transactions on Alternate Channels for FY 2021-22

a) 55% b) 95.5 %

c) 91% d) 62%

13 Total number of branches in SBI as on 31.3.2022

a) 22266 b) 45253

c) 39589 d) 59542

14 Bank’s current Stake in SBI Life for FY 2021-22

a) 62.10% b) 57.60%

c) 55.48 % d) 45.17%

15 Share of SBI in SBI Cards & Payment Services Pvt ltd

a) 69.39% b) 100%

c) 86.18% d) 69.51%

16 SBI’s share in SBI Mutual Fund Trustee Company Pvt Ltd

a) 45% b) 100%

749
 c) 86.18% d) 62.10%

17 Bank’s Home Loan Portfolio for as on Sep 22

a) 6 trillion b) 3,25,486 Cr

c) 4,05,620 Cr d) 2,67,614 Cr

18 Gross Advances of our Bank was _____ during FY 2021-22

a) Rs.27,33,967 Crore b) Rs 24,22,845 Crore

c) Rs 22,93,454 Crore d) Rs 17,46,389 Crore

19 Aggregate Deposits of the Bank for FY 2021-22 grew at the rate of

a) 12.68% b) 12.90%

c) 14.10% d) 10.06%

20 Total number of ATM’s, CDM’s, Recycler in our Bank as on March 2021

a) 60,541 b) 62,414

c) 62,617 d) 48,523

21 Market share of our Bank in ATM network in India as on March 2021

a) 29.32 b) 32.30

c) 27.83 d) 45.23

22 “YONO” was launched on

a) 24.11.2017 b) 15.10.2017

c) 01.12.2017 d) 24.09.2017

23 During FY 2022, SBI has been awarded ____ by the Global Finance Magazine

a) Best Trade Finance Provider b) Best Cash Management House in

India

c) Best Transaction Bank in India d) All of the above

24 During FY2022, all departments under Fianance Vertical were accredited with-

a) Best Payment Bank in India b) Best Cash Management House in

India

750
 c) ISO 9001:2015 certification d) All of above

25 On recommendations of _________ Committee and through passing of an Act

in Parliament, Imperial Bank of India was renamed as State Bank of India on
1st July 1955

a) Gorewala b) Hilton Young Mission

c) Kelkar d) Ranganathan

26 SBI's Registered Office & Central Accounts Office is in_________

a) Kolkata b) Mumbai

c) Chennai d) New-Delhi

27 Corporate Centre is headed by

a) Chief Financial officer b) Chief Vigilance Officer

c) Chairman d) Chief Technological officer

28 How many Managing Directors (MD) are there under Chairman?

a) 4 b) 5

c) 6 d) 7

29 Chief Vigilance Officer (CVO) reports to

a) DMD & CDO b) DMD & CFO

c) Chairman d) MD & CCRO

30 Strategic Training Unit (STU) is headed by

a) DMD b) CGM

c) CTO d) All the above

31 Retail & Digital Banking Group Comprises of ____ Circles

a) 13 Circles b) 17 Circles

c) 16 Circles d) None of the above

751
32 Circles are headed by

a) Deputy General Manager b) Deputy Managing Director

c) General Manager d) Chief General Manager

33 Circle Management Committee (Cir MAC) is presided by ____

a) CGM b) GM

c) DGM&CDO d) DGM(CFO)

34 BPR is introduced as per the recommendations of which consultancy

organization

a) Rangarajan Committee b) Narasimham Committee

c) McKinsey & Co d) Tata Consultancy Services

35 Stressed Assets Management Group (SAMG), has been set up to take over all
NPAs with outstanding of Rs.____ crore and above.

a) 10 b) 20

c) 25 d) 50

36 The functionality of Loan Origination Software (LOS) refers to

a) Designing a Loan Product using b) Registration, Processing and

the software Generation of Loan Documents and
tracking status of Loan applications

c) NPA Tracking d) None of these

37 Which is the unit set up by Bank which performs the various services like
receiving voice calls, emails, letters, complaints from the customers, in
addition to accepting the requests for cheque book, fund transfer, bill payment
etc.

a) Liability Centralised Processing b) Contact Centre

Center

c) Complaint Centre d) Outbound Sales Force

38 What is the role of Document Archival Centre (DAC) under BPR?

a) Decongest the Branches by b) Execution of Bank's Loan Documents

removing records maintenance

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 c) Printing of Bank's Loan Documents d) None of these

39 Which of the following committee will look into and manage the reduction of
liquidity and interest rate risk and optimization of returns?

a) Asset Liability Management b) Inspection and Audit Management

Committee System

c) Bank Risk Management d) Corporate Risk Mitigation

Committee Department

40 Which one of the following is not a Business Group

a) Retail Banking & Operations Group b) Global Banking

c) Commercial Clients Group d) None of the above

41 Bank’s Net profit for quarter ended on Sep 2022 (Rs. In Cr)

a) 13265 b) 7992

c) 31676 d) 10014

42 Bank’s YOY growth in Net profit for quarter ended on Sep 2022

a) 73.93% b) 11%

c) 15.05% d) 23.45%

43 Gross NPA as on 30.09.2022 (in %)

a) 3.52% b) 4.58%

c) 3.72% d) 1.02%

44 Name of the SBI e-learning portal

a) Gyanodaya b) SBI Connect

c) Ask SBI Gyanshala d) SBI Pay to learn

45 Statutory Auditors of SBI submit their report on annual accounts of SBI to

a) President of India b) RBI

c) Ministry of Finance d) IBA

46 Bank’s NIM for FY 2021-22 is

753
 a) 3.12% b) 3.18%

c) 3% d) 3.28%

47 Provision Coverage Ratio excluding AUCA as on 31.03.2022

a) 75.04% b) 90.20%

c) 70.88% d) 75%

48 Start ups finance upto _____ is eligible for PSL

a) Rs 50 cr b) Rs 25 cr

c) Rs 10 cr d) Rs 100 cr

49 SBI has been awarded __________________ for ninth consecutive year by

Global Finance Magazine

a) The Best Trade Finance Provider b) Syndicated Loan House of the Year
(India) –2021

c) Best Use of Blended Learning d) None of these

50 All State Bank employees, who joined after are covered under NPS.

a) 01.07.2010 b) 01.04.2010

c) 01.08.2010 d) 01.01.2010

51 Bank’s Risk Awareness Day

a) 1st August b) 26th January

c) 2nd November d) 1st September

52 KYC Awareness Day

a) 1st August b) 1st September

c) 2nd November d) 30th November

53 Computer Security Awareness Day

a) 1st August b) 1st September

c) 2nd November d) 30th November

54 AML CFT Awareness Day

a) 1st July b) 1st September

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 c) 2nd November d) 30th November

55 Total Deposits of SBI in FY 22 was

a) 30.78 lakh Cr b) Rs 40.51 lakh Cr

c) 34.70 lakh Cr d) 31.45 lakh Cr

56 Total Advances of SBI in FY 22 was

a) 27.34 lakh Cr b) 23.83 lakh Cr

c) 20.49 lakh Cr d) 29.45 lakh Cr

57 Net Profit of SBI in FY 2021-22 was

a) 8,763 Cr b) 31676 Cr

c) 9,998 Cr d) 14,339 Cr

58 Net NPA as on 31.03.22 in SBI

a) 2.15% b) 1.12%

c) 1.02% d) 1.54%

ANSWERS

QN 1 2 3 4 5 6 7 8 9 10

ANS D A A A C B C A B A

QN 11 12 13 14 15 16 17 18 19 20

ANS A B A C A B A A D C

QN 21 22 23 24 25 26 27 28 29 30

ANS A A A C A A C A C B

QN 31 32 33 34 35 36 37 38 39 40

ANS B D A C A B B A A D

QN 41 42 43 44 45 46 47 48 49 50

ANS A A A A A A A A A A

QN 51 52 53 54 55 56 57 58

ANS D A D C B A B C

755
 MCQ - LIABILITY PRODUCTS

Which of the following is not permitted to open SB a/c?

1 a) Government bodies with budgetary b) Proprietary / Partnership firm
allocations
c) Private Ltd Company d) All the above
Savings Bank Account will be opened for
a) Societies registered under Societies b) PACS, Khadi Village Industries
2 registration act 1860
c) SHGs d) All of the above
A major individual can open
3 a) BSBDA b) Pehla Kadam
c) Pehli Udaan d) None of these
After filling the data in online SB Account opening, customer needs to come to the
4 bank for opening the account with in
a) 7 days b) 14 days
c) 30 days d) At his convenience
SB Account will be opened to HUF, provided
5 a) Karta is not an elder person of the b) HUF is engaged in Business
family
c) HUF not doing any business d) None of these
If a SB account is closed within 14 days from the date of opening, the closure
6 charge is
a) Nil b) Rs. 500 /- + GST
c) Rs. 1,000 /= + GST d) AOF
7 In SB account how many times free cash deposit allowed
a) No restriction b) 3
c) 5 d) 4
8 For opening SB Account by resident of J &K, Assam and Meghalaya that customer
needs to submit
a) Voter Id Card b) PAN
c) Any OVD containing address and d) All of these
identity with Photograph
9 The positive confirmation of the address of the customer will be made by bank
By
a) Acknowledgement of Cheque book b) By visit or telephonic
conversation
c) a) and b) d) By personal visit only
10 What is the minimum amount of deposit and Minimum withdrawal in SB account
a) No such restriction b) Rs.10 /- and Rs. 50 /-
c) Rs. 50 /- and Rs. 100 /- d) Rs. 1 /- and Rs. 10 /-

756
11 What is the ROI in SB accounts with balances above Rs. 1.00 lac?
a) 3.25 % b) 3.00 %
c) 2.50 % d) 2.70%
12 Maximum Deposit can be made in Minor SB Account is
a) Rs 20.00 lakhs with Guardian b) Rs 10.00 lakhs in single name
c) Both a & b are correct d) None of these
13 Which of the following of the illiterate person is/ are to be taken while opening SB
Account?
a) LTI of the illiterate b) Photo of the Illiterate
c) Two identification marks d) All of these
14 Who is to ascertain the correct amount of deposit or withdrawal by illiterate
customer?
a) SWO b) Passing Official
c) Branch Manager d) A or b
15 Who appoints guardians to Mentally Retarded people to operate their accounts?
a) District Court b) District Collector
c) District Medical Officer d) Both a and b
16 Who is to fill the pay in slip if an illiterate person come for deposit of the amount?
a) Another Customer b) Service Manager
c) SWO d) Invariably by a supervising
official
17 Which one of the following is not correct in case of SB Account of an illiterate?
a) Authorised official signs on deposit b) Passing official affixes signature on
form having confirmed the amount the withdrawal form confirming the
amount of withdrawal
c) Independent witness required d) Accounts of illiterate persons
while closing the account cannot be transferred to other
branch
18 Which of the following is not correct in case of SB account opened to visually
impaired person?
a) LTI to be obtained even from b) Self-Operated cheque book will be
literate person if he/ she doesn’t given to Visually Impaired if he/ she
sign uniformly signs uniformly.
c) ATM Card will be issued at the d) All are correct
time opening the account.
19 Savings Bank account will be opened to companies if___
a) Licensed U/s 25 of Companies Act b) Licensed U/s 8 of Companies Act
1956 2013
c) If the words Ltd or Pvt Ltd is not d) None of the above
there in its name

757
20 SB Account holder of Leprosy will affix the following on withdrawal or cheque
for withdrawing the amount from the account___
a) Thumb Impression b) Toe impression
c) A mark on the cheque or d) Any one of a, b or c
withdrawal form, subject to
completion of laid down formalities
if a and b are not possible
21 If one of the depositors is blind or visually impaired SB Account will be opened as
under___
a) Singly with the blind or visually b) Joint account to be operated by E
impaired person or S
c) Joint account to be operated by d) B or C
Any one or Survivor
22 As per the National Trust for Welfare of Persons with Autism, Cerebral Palsy,
Mental Retardation and Multiple Disabilities Act, 1999, a person with disability
means, a person suffering from___
a) Cerebral Palsy b) Autism
c) Mental retardation d) All of the these
23 Inoperative Account means___
a) If there is no debit or credit b) If there is no debit or credit
transactions for over a period of transactions induced by customer
two years or third party for over a period of
two years
c) If there is no debit transactions for d) None of these
the last two years
24 For the purpose of treating a SB account as inoperative, customer induced
transactions are
a) Debit or Credit induced by the b) Credit of Interest of Fixed
customer Deposit or Dividend on shares on
mandate given by customer
c) Periodical Interest credit of SB d) Both A and B are correct
account by bank
25 After becoming the account inoperative
a) ATM will be inactivated b) INB will be inactivated
c) POS Transactions will be d) All of these
inactivated
26 In inoperative accounts, the following shall not be entitled
a) Immediate credit of cheques b) Immediate credit of cheques
drawn on other branches drawn on bank branches
c) Immediate credit of foreign d) All of these
currency cheques.

758
27 Which of the operational risks the bank runs in case of Inoperative accounts?
a) Vulnerability of such accounts to b) Loss of deposit by transfer to DEAF
fraud
c) Threat to customer confidence d) All of these

28 In inoperative accounts the following transaction(s) will not be done

a) Student Scholarships b) Direct Benefit Transfer
c) ATM Transactions d) Electronic Benefit Transfer under
Government Schemes
29 The following is/ are to be meticulously followed while activating the inoperative
account
a) Genuineness of the transaction b) Verification of the signature of the
depositor
c) Identity of the customer d) All of these
30 Report of Customer wise list of inoperative accounts will be generated by CDC on

a) 31st of March b) 30th September

c) 30th June & 31st December d) 31st October
31 Intimation for account become inoperative, depd0000.txt will be generated on
a) Last Friday of every month b) Last day of the Month
c) Last day of the calendar quarter d) 15th of every month.
32 An account will be identified as Unclaimed Deposit Account, when there are no
customer or third party induced transactions for over a period of
a) 2 years b) 5 years
c) 1 year d) 10 years
33 The amount in an unclaimed deposit will be credited to DEAF (Depositor’s
Education and Awareness Fund), which will be maintained by
a) RBI b) GOI
c) NABARD d) None of these
34 The particulars invariably to be printed on the SB Pass Book are
a) Contact Particulars of the Branch, b) MICR, IFSC Code and
Contact Centre, Grievance Nomination Number
Redressal Officer.
c) Both A and B d) None of these.
35 In case of transfer of SB Account form one branch to other, the following is not
correct
a) Request for transfer will be b) Any one the depositors may submit
submitted at either transferor or request for transfer in case of E or
transferee branch. S or Any one or Survivor accounts.
c) KYC to be submitted at any of d) Home branch to be changed by
transferee or transferor branch in transferor branch for affecting
case of incomplete KYC. transfer of the account.

759
36 At non home branches
a) SB Customers themselves b) Third party payment up to Rs
withdraw up to Rs 50,000/- 5,000/- will be made.
c) SB Customers themselves d) SB Customers themselves
withdraw without any ceiling withdraw up to Rs 50,000/- using
cheque and up to Rs.5000/- using
withdrawal form.
37 The photograph of the illiterate person on Term Deposit will be renewed after
a) 1 year b) 2 years
c) 3 years d) 8 years
38 In minor Savings Bank accounts of Pehla Kadam and Pehli Udaan, the following is/
are not correct.
a) Enquiry Rights will be given in b) Limited transaction rights up to the
RINB for both variants limit of Rs 5000/- will be given to
both variants
c) Child photo embossed ATM Card d) Personalized Cheque Book will be
will be given in both variants issued to minor in both variants
39 The following can open a Pehli Udan account
a) Any minor above 10 years b) Minor above 10 years and can sign
uniformly
c) Minor below 10 years d) Minor of any age
40 Photo embossed ATM card will be given to
a) Pehla Kadam accounts b) Pehli Udaan
c) All SB Accounts d) To A & B only.
41 Pehli Udaan will be opened to
a) Minor of above 10 years age singly b) 10-year-old minor jointly with
Natural Guardian only
c) 10-year-old minor jointly with d) All of these
Guardian
42 Which of the following is not correct, regarding Monthly Average Balance (MAB) in
SB accounts
a) For Metro & Urban – Rs. 3,000 /- b) Semi Urban – Rs. 2,000 /-
c) Rural – Rs. 1,000 /- d) Non maintenance of MAB attracts
penalty
43 Minor can open SB Account
a) Singly if above 10Y age and signs b) Jointly with Guardian
uniformly
c) Jointly with mother d) All of these
44 Report name where the list of minors who attained majority is
a) Depd0622.txt b) Deposit Shadow file
c) Depdmaj.txt d) None of these
760
45 Which of the following is not correct regarding to Small Account
a) Maximum credit summation during b) Balance maximum Rs 50,000/- at
FY is Rs. 2,00,000/- any point of time
c) Simplified KYC d) ATM Card will be issued

46 What is the number of maximum credit transactions allowed in BSBD A/c

a) 4 b) 5
c) No restriction d) 3

47 Which of the following is/ are to be taken from HUF while opening the SB account
a) PAN and KYC of the Karta only b) JHF Letter on COS-38
c) Both a & b d) PAN and KYC from all adult co-
parceners
48 In BSBD Account, which is not permitted
a) Deposits more than 4 in a month b) KYC Compliancy
c) Withdrawals up to 4 in a month d) None of the above
including ATM Transactions free of
cost
49 If a customer has any other existing Savings Bank deposit account in our Bank,
he/she will be required to close it within ______ from the date of opening a
Basic Savings Bank Deposit Account.
a) Immediately b) 30 days
c) 60 days d) Need not be closed

50 In BSBDA-Small account, the following is not permitted

a) Withdrawal and transfers in a b) The balance at any point of time
month exceeding Rs 10,000/- does not exceed Rs 50,000/-
c) The aggregate credit in a year d) Account will be opened on
does not exceed Rs 1.00 lakh submission of simplified KYC
51 BSBDA-Small Account is initially valid for a period of
a) 6 months b) 24 months
c) 12 months d) None of the above

52 No transactions will be permitted in BSBDA-Small account if the KYC documents

are not submitted with in
a) 12 months b) 24 months
c) 6 months d) None of these
53 In Savings Plus Account, MOD will be issued for are
a) Rs.10000/- & in multiples of b) Rs.10000/- & in multiples of Rs.
Rs.1000/- 5000/-
c) Rs.10000/- & in multiples of Rs. d) None of these
100/-

761
54 In SBI Flexi Deposit scheme, the minimum Deposit per year and at any one
time are
a) Rs 5,000/- & Rs 1,000/- b) Rs 10,000/- & Rs 1,000/-
c) Rs 5,000/- & Rs 500/- d) None of these
55 Sundry Loan against the Annuity Deposit will be given
a) 75% of remaining balance amount b) Annuity to be credited to Sundry
Loan
c) Both are correct d) None of these
56 The minimum deposit to be made in MODS is
a) Rs 1,00,000/- b) Rs 10,000/-
c) Rs 1,000/- d) None of these
57 Maximum cash withdrawal permitted in Capital Gain SB account is
a) Rs 25,000 /- per instance b) Rs 49,999 /- per instance
c) Rs 50,0000 /- per instance d) No cash withdrawal is permitted
58 Which of the following is not correct in case of SBI Tax Saving Scheme 2006
a) Max Deposit in a year b) Minimum Deposit Rs 1000/-
Rs.1,50,000/-
c) No premature payment before 5 d) HUF, NRI and PIO can open the
years account.
59 The additional incentive of 1% to staff in interest rate will be given if the account
opened by staff jointly with
a) Spouse, Son, Unmarried Daughter, b) Daughter-in-law, grandson and
Unmarried Sister, parents. grand daughter
c) Monies belong to staff member d) All of these.
60 The additional incentive of 1% to staff in interest rate is also available to HUF
Account if
a) The staff member is Karta of a b) If staff member is an adult co-
HUF parcener
c) Both A and B d) None of these are correct
61 The following will be issued to customer if opted for Savings Bank account to be
opened with Non-Personalized Welcome kit
a) ATM Card (If customer opts) b) Cheque book (If customer opts)
c) Welcome Letter d) All of these.
62 AAI (Additional Air Accident Insurance) coverage under PAI for CSP Gold variant
a) Rs 5.00 lakhs b) Rs 20.00 lakhs
c) Rs 30.00 lakhs d) Nil
63 Which one of the following is not correct?
a) There is no silver variant under b) For eligible for CSP lite, the net
DSP, PMSP AND ICGSP salary should be between Rs. 5000
/- and Rs. 9,999 /-
c) For Air Accident Claim, the ticket d) Concession in locker charges for
should be purchased by using our Platinum and Diamond category is
debit card / INB 25 %
762
64 Coverage in PAI for marriage of girl child of 18-25 age for all variants in CSP is
a) Rs 2.00 lakhs b) Rs 5.00 lakhs
c) 10% of PAI upto Rs 2.00 lakhs d) Rs 1,500/-
65 Coverage in PAI for Repatriation of mortal remains for all variants in CSP is
a) Rs 2.00 lakhs b) Rs 5.00 lakhs
c) Rs 20,000/- d) Rs 1,500/-
66 Which of the following is correct regarding CSP tie up?
a) Metro center – Min 25 employees or b) Other center - Min 20 employees or
salary credit of Rs. 5 lacs salary credit of Rs. 4 lacs
c) Any Corporate is eligible d) The tie up should be uploaded in
CTU site through RBO / KAM
67 CSP lite customers enjoy the following features
a) No MAB, PAI coverage of Rs. b) Only No MAB
1,00,000 /-
c) No MAB, PAI coverage Rs. d) No MAB, PAI coverage Rs.
1,00,000 /-, unlimited ATM 1,00,000 /-, unlimited ATM
Transactions Transactions, No ATM maintenance
charges
68 What is the Permanent Total Disability Cover available for DSP, PMSP & ICGSP?
a) Rs 5.00 lakhs b) Rs 20.00 lakhs
c) RS.50.00 laks d) Rs.25.00 lakhs
69 Coverage in PAI for Plastic Surgery for all variants except Silver in CSP is
a) Rs. 10.00 lakhs b) Rs 5.00 lakhs
c) 10% of PAI up to Rs 2.00 lakhs d) Rs 1,500/-
70 AAI (Additional Air Accident Insurance) coverage under PAI for CSP Silver variant
is
a) Rs 5.00 lakhs b) Rs 20.00 lakhs
c) Rs 30.00 lakhs d) Nil
71 Which one of the following is not correct in CSP Platinum Variant?
a) International Platinum Debit card b) Max debit in ATM is Rs 1.00 lac per
will be issued day
c) Rs 2.00 lakhs limit for POS d) All are correct
72 Overdraft will be given to CSP Variants
a) 2 month’s salary up to max of Rs b) 2 month’s salary up to max of Rs
1.50 lakhs to Diamond 2.00 lakhs to Platinum
c) Both A and B are correct d) None of these
73 Coverage in PAI for death and Coma after accident for all variants in CSP is
a) Rs 2.00 lakhs b) Rs 5.00 lakhs
c) 10% of PAI up to Rs 2.00 lakhs d) Rs 1,500/-
74 Which of the following is not correct regarding Saving Bank Plus account
a) Auto Sweep facility is available b) TDR / STDR can be broken on FIFO
basis

763
 c) Minimum TDR / STDR is Rs. 10,000 d) Minimum Threshold limit Rs.
/- and in multiples of Rs. 1,000 /-. 35,000 /-. Minimum resultant
Period of deposit 1 to 5 years Balance: Rs. 25,000 /-
75 Which one of the following is not a Low-Risk category account
a) Pehla Kadam b) Pehli Udaan
c) Minor account opened with d) NRE SB Account
guardian

76 Which of the following is not correct in case of PMSBY

a) Life cover for Rs 2.00 lakhs b) Cover available for 18-70Y age
c) Cover available from National d) All of these
Insurance Co.
77 Life cover available in PMJDY account
a) Rs. 2,00,000 /- b) Rs. 1,00,000 /-
c) Rs. 5,00,000 /- d) Either Rs. 1,00,000 /- or Rs.
2,00,000 /- depends on age
78 In case of APY, which is not correct
a) It is meant for unorganized sector b) It is meant for unorganized 18- 60
retirees age
c) Scheme administered by PFRDA d) Aadhar is not mandatory.
79 Maximum pension available in APY is
a) Rs 1,000/- per month b) Rs 2,000/- per month
c) Rs 10,000/- per month d) Rs 5,000/- per month

80 Which account can be linked to CLTD?

a) SB b) CA
c) SB or CA d) TDR
81 Maximum Deposit permitted in SBI Flexi Deposit is
a) No maximum limit b) Rs 50,000/- in a year
c) Rs 1,50,000/- in a year d) Rs 500/- per month
82 In an Annuity deposit the following is not correct
a) Minimum deposit Rs 25,000/- b) Minimum Annuity Rs 1000/- PM
c) Premature Payment in case of d) Maximum Deposit Rs 1,50,000/- per
death of the depositor annum.

83 What is the minimum deposit amount and maximum period for non – callable Term
deposit?
a) Rs 1 Cr & 3 years b) Rs. 2 Cr & 3 years
c) Rs. 2 Cr & 3 years d) Rs. 2 Cr & 5 years

84 The following is not correct in case of Term Deposits

a) Issued for a period of 7 days or more b) Minimum Deposit of Rs 1,000/-

764
 c) No Maximum period. d) Concession in Interest Rates
offered to Senior Citizens.
85 Bulk Deposit means if
a) Fixed Deposit of more than Rs 10 b) Fixed Deposit of Rs 2 Crore and
Crore above
c) Fixed Deposit of Rs 50 Lakhs d) None of these
and above
86 Term Deposit for more than 120 months (10-years) will be issued in case
a) In the name of the newly born girl b) In case of any newly born child.
child under the Special Scheme of
the Government
c) Both are correct d) Both are wrong
87 In case of Term deposit issued in joint names under Either or Survivor operating
instructions, the following is not correct
a) Payment will be made to any one at b) Both signatures to be obtained if
maturity. paid before maturity.
c) If loan is taken against the d) Operating style can be modified
security of this, both are to sign the at the consent of any one of them.
documents.

88 In case of a Term deposit issued in the joint names, the following is not correct
a) Any one or all the depositor’s b) One depositor must continue till the
name(s) will be deleted, and new maturity of the deposit.
names are added during the
tenure of the deposit.
c) Splitting of joint deposits will be d) The deceased depositor’s name
made at the request of all will be substituted with the legal
depositors provided the term and heirs of the deceased.
amount doesn’t change.

89 In case of Term Deposit issued in the name of the minor, the following is not correct

a) Term Deposit will be issued in the b) Term deposit will be issued up to an

sole name if the depositor attained
the age of ten and signs
uniformly.
c) Term deposit will be issued up to an d)
amount of Rs.10,00,000/- if issued
jointly with guardian.
amount of Rs 2,00,000/- if issued in
the name of the minor alone.
No undertaking is to be obtained
from the guardian if the Term
Deposit issued for an amount of
more than Rs 2.00 lakhs

765
90 In case of nomination on Term Deposit, the following is correct
a) Nomination to be given at the time b) Nomination is to be given at every
of issuance of Term Deposit and time, the renewal of the of Term
need not be given at every renewal Deposit
c) Nominee should not be minor d) None of these

91 Penalty for non – Deposit of monthly instalment in RD account is

a) If term is 5 years or less – Rs. 1.50 b) If term is above 5 years – Rs. 2.00
per Rs. 100 per month per Rs. 100 per month
c) At any cost penalty should not d) All are correct
exceed the interest paid amount

92 Tenor of e-RD holiday saving account ( Cox & Kings) is

a) 11 months b) 12 months
c) 36 months d) 12/24/36 months

93 Periodic Updation of KYC for existing accounts to be done for low/ medium / high
risk categories as under
a) 10/8/2 years respectively b) 10/5/2 years respectively
c) 5/3/2 years respectively. d) None of these

94 If the KYC Compliance is not done in the existing accounts, debit transactions in
the account will be frozen (Partial Freezing) after
a) 1st Notice is to be issued with a b) A reminder will be sent to the
response time of 1 months to the customer by Registered post giving a
account holder further period of one month
c) Partial freeze to be imposed after d) Bank has no right to freeze
three months from date of first notice, transactions.
by allowing all credits but disallowing
all debits
95 If the KYC Compliance is not done in the existing accounts, the account will be
blocked after
a) 1st Notice is to be issued with a b) A reminder will be sent to the
response time of 1 months to the customer by Registered post giving
account holder a further period of one month
c) Partial freeze to be imposed after d) Bank has no right to freeze
three months from date of first transactions.
notice, by allowing all credits but
disallowing all debits
96 How many notices to be sent to customers before partial freeze
a) 2 notices b) 3 notices
c) 1 notice d) 4 notices

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97 Fill up the account opening form on the digital board at the bank in a jiffy is called
_____ (walk in with your KYC, walk out with account number)
a) SBI Smart b) SBI Scribe
c) SBI Pride d) SBI Easy
98 Swayam is used for
a) Passbook printing b) Cheque depositing
c) Online enquiry d) Registering complaint
99 SBI mFAST is
a) Cash Management Service b) SBI General Insurance app
c) App to generate quick token in d) None of these
CEEP
100 SBI Mingle is a _______
a) Missed Call Banking b) Cash Management Product App
c) Social Banking App d) Multi Facet INB Utility
101 What is the maximum OD account eligible for Power POS current account
a) Rs. 25,000 /- b) Rs. 5 lacs
c) 25 % of last 6 months transaction d) No overdraft permitted
without any ceiling
102 Interest payable to current account in case of
a) Proprietor account when the b) When trust is opted to open current
proprietor deceased account
c) When HUF is opted to open current d) All are correct
account
103 Current account is a form of?
A Time Deposit B Demand Deposit
C Term Deposit D Fixed Deposit

104 Which one of the following official cannot authorize a current account opening?
A Branch Manager B Divisional Manager
C Authorised official D None of the above
105 A proprietary firm wants to open current account with our bank. They do not have
account with any other bank? Which of the following document is not required to
open the account?
A Proprietor’s ID Proof B NOC from other banks
C Undertaking stating that they do not D Firm’s Address proof
have any credit facilities with other
bank.
106 A businessman intends to open a CA, but the signature is in such a manner that
it can be forged easily. What are the available remedies for the branch?
A The branch can open account in a B The branch can open account after
routine manner. obtaining undertaking from the
applicant, that he will draw cheque

767
 in the presence of an official in the
branch.
C The branch can refuse to open D B&C
the account
107 Who can open a current account?
A Individuals B Firms
C HUF D All of these
108 Which one of the following can open a current account?
A Public limited company B Private limited company
C Trusts D All of these
109 An account is treated as inoperative if there are no customer or third party
induced transactions in the last?
A 1 year B 2 years
C 5 years D 10 years
110 An account is treated as UNCLAIMED Deposit, if there are no customer or third
party induced transactions in the last?
A 2 years B 5 years
C 10 years D 15 years
111 Nomination facility is available only to
A Individual accounts B Proprietary concerns
C Limited companies D A&B
112 Nomination in case of current account can be made in favour of how many
persons?
A There is no such restriction B Only one person
C Only two persons D Facility not available for CA
113 Which one of the following is not a form of legal representation?
A Succession Certificate B Letter of Administration
C Family tree D Probate
114 A succession certificate may be granted by a
A District judge B High court
C Both D None of the above
115 A succession certificate is not applicable to
A Articles in safe deposit B Ornaments pledged
C None of the above D Both
116 A succession certificate is valid
A In the district where it is issued B In the State where it is issued
C All over the country D None of the above
117 To open a current account in the name of a minor, approval is required from?
A No approval is required B Module Head
C Controlling authority D Circle Head
118 A partnership letter should be obtained from the partnership firm at the time of
account opening, in the format of
768
 A COS 35 B COS 37
C COS 36 D COS 38
119 A Joint Hindu Family letter should be obtained for HUF account at the time of
account opening, in the format of
A COS 35 B COS 36
C COS 37 D COS 38
120 Bank has to be notified by the HUF every time
A On birth of a new coparcener B On death of a coparcener
C Minor on becoming Major D All the above
121 Which of the following documents to be obtained at the time of account opening
for a Company?
A Memorandum and articles of B Certificate of incorporation
association
C A board resolution to open the D All the above
account
122 Which of the following documents to be obtained at the time of account opening
for a society?
A Resolution of managing body B Certificate of registration
C Copy of Bye-laws D All the above
123 Which of the following documents to be obtained at the time of account opening
for a HUF?
A Declaration from Karta B Proof of identification of Karta
C PAN copy of HUF D All the above
124 Which of the following documents to be obtained at the time of account opening
for a Trust?
A Copy of resolution B Trust deed
C Registration certificate D All the above
125 Which of the following documents to be obtained at the time of account opening
for a partnership firm?
A Copy of partnership deed B Partnership letter
C PAN card of the firm D All the above
126 Which of the following documents to be obtained at the time of account opening
for a proprietary concern?
A Certificate or license B Pan of the proprietor
C Address proof D All the above
127 Individual accounts where credit or debit summations of Rs 2.00 crores or more
per annum are categorized under
A Low risk B Medium risk
C High risk D Either A or C
128 Non-Individual accounts where credit or debit summations of Rs. 10.00 crores or
more per annum are categorized under
A Low risk B Medium risk
C High risk D Either B or C
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129 Individual accounts where credit or debit summations of Rs.50.00 lacs to below Rs
2.00 crores per annum are categorized under
A High risk B Medium risk
C Low risk D Either Medium or low
130 Non-Individual accounts where credit or debit summations of Rs 2.00 crores to
below Rs.10.00 crores per annum are categorized under
A High risk B Medium risk
C Low risk D Either high or medium
131 Which of the following is not a low risk account?
A Salaried account B BSBDA Small account
C NGO account promoted by UN D None of the above
132 What is the MAB to be maintained in a Regular current account?
A Rs.5000/- B Rs.10000/-
C Rs.7500/- D Rs.2500/-
133 For a regular current account penalty for not maintaining minimum balance?
A Rs. 500 + GST per month B Rs. 500+ GST per quarter
C Rs. 1000 + GST per quarter D Rs. 1000 + GST per month
134 Maximum number of free cheques allowed for a Diamond current account?
A 1000 per month B 750 per month
C 500 per annum D 700 per month
135 What is the MAB to be maintained in a Gold current account?
A Rs.10,000 /- B Rs.50,000/-
C Rs.1,00,000/- D Rs.5,00,000/-
136 What is the maximum per day cash deposit at non home branch (other than
Chest branch) for Gold, Diamond & Platinum Current accounts?
A Rs.2,00,000 /- B Rs.1,00,000/-
C Rs. 50,000 /- D Rs. 5,00,000 /-
137 What is the maximum per day cash withdrawal (for self only) at non home
branch in case of current accounts?
A Rs. 49,999 /- Rs. 50,000 /-
C Rs. 1,00,000 /- No cash withdrawal permitted
138 What is the following is incorrect regarding free monthly cash deposit per month
in current account?
A Regular – Rs. 5 lacs B Gold – Rs. 25 lacs
C Diamond – Rs.50 lakh D Platinum – Rs.200 lakh
139 NOC for current account for our borrowers (for units whose proposals are
sanctioned by CLCC) to be authorised by an official not below the rank of __ ?
A Chief General Manager B General Manager
C Deputy General Manager D Assistant General Manager
140 NOC for current account for our borrowers (for units whose proposals are
sanctioned by RCC) to be authorised by an official not below the rank of ____?
A Chief General Manager B General Manager
C Deputy General Manager D Sanctioning Authority
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141 Bank deposits upto Rs 1 lakh is insured by ______ and collects a flat premium of
___ paise per Rs. 100 /- deposit.
A DICGC & 10 paise B DICGC & 1 paise
C RBI & 1 paise D GOI & 10 paise
In small accounts, alerts are given to customer when the balance exceeds Rs.
142 _____ and credit summation exceeds Rs. ____-
A Rs. 48,000 /- & Rs. 98,000 /- B Rs. 45,000 /- & Rs. 90,000 /-
C Rs. 47,500 /- & Rs. 97,500 /- D Rs. 40,000 /- & Rs. 80,000 /-
143 Politically exposed person account opening to be approved by officer nor below
the rank of _____?
A AGM B Scale IV
C Branch Manager irrespective of any D DGM
scale
144 Controlling ownership interest means ownership or stake in the business of ____%
in case of companies and __ % in case of Partnership/club/associations
A 25 % & 15 % B 20 % and 10 &
C 15 % and 25 % D 25 % and 20 %
145 Daily ATM cash limit & POS limit for State Bank Pride card
A Rs. 1,00,000 /- & Rs. 2,00,000 /- B Rs. 50,000 /- & Rs. 1,00,000/-
C Rs. 2,00,000 /- & Rs. 4,00,000 /- D Rs. 40,000 /- & Rs. 1,00,000 /-
146 Name of the account which facilitates sweep and reverse sweep of balance above
a threshold, to term deposit?
A Surabhi B Sahaj
C Jyothi D Sweepbhi
147 Minimum balance of deposit that has to be maintained in CLTD AC?
A Rs. 25000/- B Rs. 50000/-
C Rs. 75000/- D Rs. 100000/-
148 Minimum subsequent deposit amount for current account in CLTD?
A Rs.5000/- B Rs.10000/-
C Rs. 20000/- D Rs.25000/-
149 The current account which facilitates the collection of funds from any branch?
A Power Jyoti B Power Light
C Power collect D Power Pack
150 Minimum deposit to be maintained in a Power Jyoti account?
A Rs.50000/- QAB B Rs.50000/- MAB
C Rs. 25000/- MAB D Rs.25000/- QAB
The product which allows the customer to pre upload MIS data of own?
151 A Power Jyoti B Power Light
C Power Collect D Power Jyoti (PUL)

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152 Unique feature of Power Jyoti (PUL) account?
A It allows the customer to upload MIS B It helps customer for reconciliation
data
C Both the above D Neither
153 Floating Rate Bulk Term Deposit will allow depositor to take advantage of changes
in ________
A Bank Rate B Reverse Repo Rate
C Repo Rate D State Bank Advance Rate
154 Minors are __________ to open Floating Rate Bulk Term Deposit
A Eligible - Singly B Eligible – Jointly with Guardian
C Either Singly or Jointly with Guardian D Not Eligible

155 What is the Minimum Deposit can be placed in Floating Rate Bulk Term Deposit
A Rs.1 Crore B Rs.2 Crores
C Rs.5 Crores D No such restrictions

ANSWERS – LIABILITY PRODUCTS

QN 1 2 3 4 5 6 7 8 9 10
ANS D D A C C A B C C B
QN 11 12 13 14 15 16 17 18 19 20
ANS D C D B D C D C D C
QN 21 22 23 24 25 26 27 28 29 30
ANS D A B D D D D C D C
QN 31 32 33 34 35 36 37 38 39 40
ANS C D A C B D C D B D
QN 41 42 43 44 45 46 47 48 49 50

ANS D D D A A C C D B A
QN 51 52 53 54 55 56 57 58 59 60
ANS C B A C C B A D D D
QN 61 62 63 64 65 66 67 68 69 70
ANS D A D C C C A C A D
QN 71 72 73 74 75 76 77 78 79 80
ANS A C C B D A A B D C
QN 81 82 83 84 85 86 87 88 89 90
ANS B D A C B A D A C A
QN 91 92 93 94 95 96 97 98 99 100
ANS D B A C C A B A A C
QN 101 102 103 104 105 106 107 108 109 110
ANS D A B D B D D D B C

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QN 111 112 113 114 115 116 117 118 119 120
ANS D B C A D C C B D D
QN 121 122 123 124 125 126 127 128 129 130
ANS D D D D D D C C B B
QN 131 132 133 134 135 136 137 138 139 140
ANS D B A D C D C C B D
QN 141 142 143 144 145 146 147 148 149 150
ANS A D B A A A D B A B
QN 151 152 153 154 155
ANS D C C D B

773
 MCQs on Home Loan

1 What is the Minimum Loan amount that can be sanctioned under SBI Realty Loan?

a) Rs.3.00 Lacs b) Rs.5.00 Lacs

c) Rs.10.00 Lacs d) No such stipulation

2 SBI Reality can be sanctioned as ______

a) Term Loan Only b) Overdraft Only

c) TL and OD d) TL/DL and OD

3 Maximum Loan Tenor applicable under SBI Realty Loan is _______

a) 60 Months b) 90 Months

c) 120 Months d) 180 Months

4 What is the Maximum age of the applicant under SBI Realty Loan

a) 70 years b) 65 years

c) 60 years d) 75 years

5 EMI/NMI ratio for more than Rs. 10 lacs of income under SBI Realty Loan is _____

a) 70 % b) 60 %

c) 65 % d) 50 %

6 What is the Maximum time period stipulated for construction of house under SBI
Realty Loan?

a) 2 years from the date of b) 5 years from the date of first disbursement
sanction

b) 3 Years (36 Months) from the d) 5 years from the date of last disbursement
Date of First Disbursement of
the Loan.

7 In SBI Realty Loan, two title search reports, one before the loan is sanctioned and
another before disbursement of the loan, should be obtained from two different
empaneled advocates in case of loans ______

a) 1 Crore and above b) Above 1 Crore

b) 50 Lacs and above d) Above 50 Lacs

8 Find the correct statement with regard to SBI Realty Loan

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 a) Takeover permitted b) Takeover not permitted

c) Loan given for purchase of d) Reimbursement facility available within a

commercial plot period of 12 months from date of purchase

9 Minimum Loan amount under SBI Maxgain Scheme?

a) Rs.5.00 Lacs b) Rs.10.00 Lacs

c) Rs15.00 Lacs d) Rs.20.00 Lacs

10 Maximum Housing loan amount in SBI Maxgain Scheme?

a) Rs. 5 crores b) Rs. 10 crores

c) Rs. 3 crores d) Rs. 2 crores

11 Find the incorrect statement with regard to SBI Maxgain Scheme?

a) Facility: Overdraft b) Can be used as a running account with INB,

cheque book etc. immediately on sanction.

c) Customers will get the benefit d) Eligible for customers having a balance of
by saving Home Loan Interest Rs.5000/- in their SB/CA

12 Conversion of Existing Home Loan (Term Loan) to Maxgain Account (OD) will be
extended to Home Loan borrowers except _______

a) Fully disbursed accounts having b) IRAC status of the account should be

outstanding of Rs. 20 lacs and Standard
more

c) Staff Individual Housing Loans d) Security has already been created

13 What is the minimum loan under Home Top-up Loan?

a) Rs. 1 lac b) Rs. 2 lacs

c) Rs. 5 lacs d) No minimum amount

14 At any point of time not more than _____ loans will be allowed to exist under Home
Top-Up Loan Scheme.

a) One b) Two

c) Three d) No restrictions as long as LTV Ratio and

EMI/NMI Ratio permits

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15 The maximum permissible tenor of the Home Top Up loan will be the residual
tenure of underlying Home Loan or ____ years, whichever is ______, subject to
liquidation of the loan before the borrower attains the age of 70 years.

a) 15 years, lower b) 10 years, higher

c) 10 years, lower d) 15 years, higher

16 Extension of the mortgage on the residential property already mortgaged will not
be mandatory for Home Top up Loans ________ where the customer wants the
loan tenor which is not beyond the maturity period of underlying Home Loan.

a) Upto 5 lacs b) Upto 10 lacs

c) Upto 2 lacs d) Extension is not at all mandatory

17 Mrs. Rekha (who is not part of underlying home loan), wants to join as borrower/
guarantor to shore up the loan eligibility for Home Top-Up Loan. Find out the
statement which is Correct.

a) No, it is not possible b) Yes, it is possible in case of blood relatives

c) Yes, it possible only if Mrs. d) Yes, it is possible in case of Spouse,

Rekha is a Spouse or Mother of Parents, Children & Siblings
the home loan borrower

18 Mrs. Rekha Sharma is a part of underlying joint home loan with her husband Mr.
Sharma. Now, Mr. Sharma wants to include his son her place for the new Home
Top-Up Loan. Find out the statement which is Correct.

a) No, it is not possible b) All the borrowers of the Home Loan are
needed to join as applicants in the Top Up
Loan.

c) Yes, if the property is registered d) Inclusion or Exclusion of a borrower is not

only in the name of Mr. Sharma possible

19 Under Home Top up Loan Overdraft facility available for limits

a) Up to Rs.20.00 Lacs b) Above 20.00 Lacs and upto Rs.2.00 Crores

c) Above 2 Crores and Up to 5 d) All of the above

Crores

20 For considering HL Top up loan under Category-I, the original HL limit should be

a) More than Rs. 20 lacs b) More than Rs. 25 lacs

c) More than Rs. 30 lacs d) More than Rs. 50 lacs

776
21 What is the maximum loan for Category-2 customers under Home Top-up Loan

a) Rs.1 crore b) Rs.5 crores

c) Rs.10 crores d) No upper limit

22 Which is not the eligibility criteria for Insta Home Top Up Loan?

a) Minimum Home Loan b) Satisfactory Track Record of 2 years

amount of Rs.10 lacs with INB
facility

c) CIBIL Score of 700 d) Minimum Residual tenure of Home loan > 3

years

23 Minimum and Maximum loan amounts under Insta Home Top Up loan scheme

a) Rs. 0.50 Lac and 8% of HL limit b) Rs.1.00 Lac/Rs.10.00 Lacs

or 8 lacs whichever is lower

c) Rs.5.00 Lacs/Rs.10.00 Lacs d) Rs.5.00 Lacs/Rs.15.00 Lacs

24 What is the maximum loan under Insta Home Loan Up Loan Scheme for a Home
Loan borrower who had earlier availed Rs.50 lacs?

a) Rs. 5 lacs (i.e. 10% of Home b) 4 lacs (i.e 8% of HL limit or 8 lacs whichever
Loan) is lower)

c) Rs. 5 lacs (maximum eligibility) d) Any amount (Home Loan Limit Minus the
present outstanding)

25 Nature of facility under Insta Home Top up Loan scheme

a) TL only b) OD only

c) TL or OD as per customer d) OD with reducing Drawing Power

request

26 When will be the repayment commence in case of Insta Home Top up loan after
disbursement?

a) 1 month b) 6 months

c) 3 months d) 2 months

27 The borrower’s acceptance of Terms & Conditions will be validated in an Insta

Home Top-Up Loan by using ___?

777
 a) One Time Password (OTP) sent b) Arrangement Letter
to his registered mobile number

c) Email from registered mail d) All of the above

address with Bank

28 Under what conditions the second Insta Home Top Up loan will be permitted?

a) Only on the condition that 1st b) Only on the condition that there is a gap of
Insta Top up Loan is closed one year from the date of opening the
pervious Insta Top Up Loan.

c) Both A & B d) None of the above

29 What will be the processing fee levied for Insta Home Top Up Loan?

a) A flat processing fee of b) A flat processing fee of Rs.2000/- plus

Rs.1000/-plus applicable taxes applicable taxes

c) A flat processing fee of d) No processing fee for Insta Home Top Up

Rs.2500/- plus applicable taxes Loan

30 What is the validity of the Insta Top Up Loan offer for an eligible Home Loan
borrower?

a) 30 days b) 1 Month

c) 90 days d) 3 Months

31 What will be the Maximum Tenor under Insta Home Top-up Loan scheme for an
underlying Home Loan with a residual maturity period of 15 years?

a) 36 months b) 60 months

c) 180 months d) 120 months

32 What is the minimum existing Home Loan limit to get Insta Top up Loan?

a) Rs.5.00 Lacs b) Rs.20.00 Lacs

c) Rs.15.00 Lacs d) Rs.10.00 lacs

33 Maximum age for sanction of SBI Flexipay Home loan is

a) 60 years b) 55 years

b) 50 years d) 45 years

34 What benefit is provided by SBI Flexipay Home Loan?

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 a) Provides Loan amount of 1.50 b) Provides Loan amount of 1.50 times the
times the eligible amount eligible amount subject to EMI/NMI Ratio
subject to LTV Norms

c) Provides Loan amount of 1.20 d) Provides Loan amount of 1.20 times the
times the eligible amount eligible amount subject to EMI/NMI Ratio
subject to LTV Norms

35 Which of these statements is not correct regarding SBI Flexi Pay Home Loans?

a) Age: 21 -45 years b) Salaried customer with minimum 2 years of

service

c) Repayment: Minimum 5 years, d) Minimum Loan: Rs. 20 lacs

Maximum 30 years

36 In reverse mortgage loans, the minimum age of spouse is

a) 56 years b) 58 years

c) 60 years d) Not stipulated

37 Minimum age for the first borrower for SBI Reverse Mortgage Loan

a) 50 years b) 55 years

c) 60 years d) 65 years

38 What is the Minimum &Maximum Loan under SBI Reverse Mortgage Loan?

a) Rs. 2 lacs, Rs. 1 Crore b) Rs. 1 lac, Rs.1.50 Crores

c) Rs. 3 lacs, Rs. 1 Crore d) Rs.3 lacs, Rs. 1.50 Crores

39 The realizable value of a house valued Rs.1.00 crore and what will be quantum of
loan that we can sanction under Reverse Mortgage Loan Scheme (Loan amount
would include interest till maturity)?

a) Rs.90.00 Lacs b) Rs. 85.00 Lacs

c) Rs.80.00 Lacs d) Rs. 75.00 Lacs

40 Which Is the correct statement with regard to LUMPSUM payment under Reverse
Mortgage Loan Scheme

a) The lump sum amount will be up b) Rs.15.00 lakhs

to 50% of the Net Present Value
of limit, discounted at applicable
ROI for the relevant loan tenure

779
 c) a) or b) whichever is higher d) a) or b) whichever is lower

41 What is the minimum loan amount that can be borrowed through SBI Privilege &
Shaurya Home Loan products?

a) Rs.5.00 Lacs b) Rs.10.00 Lacs

c) Rs.15.00 Lacs d) Rs.20.00 Lacs

42 Minimum Loan Term for SBI Privilege & Shaurya Home Loan products is __

a) 3 years b) 3 years excluding moratorium

c) 5 years d) 10 years

43 Processing fee charged in case of SBI Privilege & Shaurya HL is ______

a) Flat fee of Rs.10,000/- + taxes b) Normal processing fee applicable

c) 50% concession in normal d) Processing fee waived

processing fees applicable to
Loans (minimum of Rs.2000/-)

44 What is the maximum age limit under SBI Privilege & SBI Shaurya Home Loan by
which time the loan should be fully repaid?

a) 55 Years b) 60 Years

c) 70 Years d) 75 Years

45 What is the minimum Loan Tenor under the Personal-Loan Against Property
scheme (P-LAP)?

a) 3 Years b) 5 Years

c) 7 Years d) 10 Years

46 What is the validity period of the Valuation Report for calculating the LTV ratio
under SBI Loan Against Property scheme?

a) Not more than 1 month old b) Not more than 2 months old

c) Not more than 3 months old d) Not more than 6 months old

47 What is the maximum amount of loan that can be borrowed under Loan against
Property scheme if property is located at Non-BPR urban Centers?

a) Rs.1.00 Crore b) Rs.2.00 Crores

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 c) Rs.3.00 Crores d) No such separate stipulation if property is
located at Non-BPR centers

48 Under which condition NRIs can borrow loan under P-LAP?

a) Only if own residential property b) If own residential property or commercial

or commercial property in property in his/her own name or in the name
his/her own name of spouse/ children

c) If own residential property or d) NRIs cannot avail loan under this scheme
commercial property in his/her
own name or in the name of
spouse/children/parent/sibling

49 A minimum CIBIL score of .......is required for a person to become eligible for SBI
Loan Against Property (P-LAP) Scheme

a) 550 b) 600

c) 621 d) 700

50 Which of the following product(s) can be considered for meeting the shortfall in
funds for purchase of a new home/flat?

a) SBI Bridge Home Loan (Now b) P-Loan against Property

withdrawn)

c) Both A&B d) None of the above

51 What is the maximum Loan Tenor for the product SBI Bridge Home Loan?

a) 2 years (Now withdrawn) b) 3 years

c) 5 years d) 10 years

52 A minimum CIBIL score of ....... is required for a person to become eligible for SBI
Bridge Home Loan?

a) 550 b) 600

c) 621 d) 700 (Product withdrawn)

53 What is the maximum loan amount that can be borrowed under the product SBI
Bridge Home Loan?

a) Rs. 1.00 Crore b) Rs. 2.00 Crores (Product withdrawn)

c) Rs. 5.00 Crores d) Rs.10.00 Crores

54 Minimum Age for NRI Home loan borrower

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 a) 18 years b) 21 years

c) 24 years d) 25 years

55 Minimum Loan amount in case of NRI Home Loan

a) Rs.3.00 Lacs b) Rs.5.00 Lacs

c) Rs.10.00 Lacs d) No such stipulation

56 TAT for NRI housing loan where proposed property is under builder tie up

a) 12 days b) 16 days

c) 15 days d) 10 days

57 Maximum ceiling under home loan SBI Hamara Ghar Scheme

a) Rs.10.00 Lacs b) Rs.20.00 Lacs

c) Rs.30.00 Lacs d) Rs.50.00 Lacs

58 What is the pre-payment penalty under SBI Hamara Ghar if loan is closed within
the initial fixed period of 2 years

a) @ 1% b) @ 2%

c) @ 0.5% d) No prepayment penalty

59 Earnest Money Deposit (EMD) Scheme is a Short-term loan for earnest money for
allotment of a house up to 100% of the application money with a maximum of ___

a) 5 lacs b) 20 lacs

c) 15 lacs d) None of the above

60 Minimum income to avail Earnest Money deposit scheme

a) No minimum income b) Rs.2.50 lacs per year

c) Rs. 2.00 lacs per year d) Rs.3.00 lacs per year

61 Type of facility under Earnest Money deposit scheme

a) OD with reducing DP b) Term Loan

c) Demand loan d) Overdraft

62 Minimum age stipulation for borrowers under SBI-Tribal Plus HL scheme

a) 18 years b) 21 years

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 c) 25 years d) 18 years for women and 21 years for men

63 Maximum Loan amount under SBI-Tribal Plus Home loan scheme

a) Rs.20.00 Lacs b) Rs.25.00 Lacs

c) Rs.50.00 Lacs d) Rs.75.00 Lacs

64 Under what category SBI Suraksha loans are classified in P-Report

a) Home Loans b) Personal Loans

c) Other Personal Loans d) Unsecured Loans

65 Bank will submit the claims under PMAY scheme to

a) National Housing Bank (NHB) b) Housing & Urban Development Corporation

(HUDCO)

c) Canara Bank d) Ministry of Housing & Urban Affairs, Govt. of

India

66 What is the definition of "family" under PMAY scheme?

a) Husband, Wife & married b) Husband, Wife, unmarried children & married
children but residing along with but not earning children
parents

c) Husband, Wife & unmarried d) Husband, Wife, Children irrespective marital

children status

67 Minimum Home Loan amount under Non-Salaried Segment

a) No Minimum Amount b) Rs.50,000/-

c) Rs.1 lac d) Rs.20 lacs

68 Maximum Home loan amount under Non-Salaried Segment

a) Rs.10.00 Crores b) Rs.20.00 Crores

c) Rs.25.00 Crores d) Rs.50.00 Crores

69 Under the Home Loan to Non-Salaried segment, relaxation in EMI/NMI Ratio will
be permitted where:

a) Minimum Loan Amount is Rs. b) Minimum Net Annual Income is Rs. 3 lacs
20 lacs,

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 c) Minimum Risk Grade is 3 under d) All of the above
Bank’s Risk Scoring Model.

70 What can be the maximum relaxation in EMI/NMI Ratio that can be permitted in HL
to Non-Salaried segment subject to certain stipulations?

a) Upto 5% b) Upto 10%

c) Upto 15% d) No relaxation is permissible

ANSWERS TO MCQs-HL VARIANTS

1 B 2 A 3 C 4 B 5 B

6 B 7 D 8 B 9 D 10 C

11 B 12 C 13 B 14 B 15 D

16 A 17 D 18 C 19 B 20 C

21 D 22 B 23 A 24 B 25 D

26 A 27 A 28 C 29 B 30 B

31 D 32 D 33 D 34 C 35 C

36 B 37 C 38 D 39 A 40 D

41 B 42 C 43 D 44 D 45 B

784
46 C 47 A 48 C 49 D 50 A

51 A 52 D 53 B 54 A 55 A

56 A 57 C 58 B 59 C 60 A

61 C 62 B 63 A 64 B 65 A

66 C 67 B 68 D 69 D 70 C

785
 MCQs - AUTO LOANS
1 What is the minimum age limit for sanction of SBI Car loan?
a) 18 Years b) 21 Years
c) 25 Years d) No specific Age criteria
2 In Auto loans the maximum number of Co-borrowers can be
a) 1 b) 2
c) 3 d) No restrictions
3 What is the minimum loan amount under SBI Car Loan Scheme?
a) No minimum b) Rs.50,000/-
c) Rs.1 lac d) Rs. 2 lacs
4 What is the Maximum repayment period in SBI Car Loan Scheme?
a) 5 Years b) 6 Years
c) 7 Years d) 8 Years
5 What is the minimum repayment period in SBI Car Loan Scheme?
a) 2 years b) 1 year
c) 3 years d) No such stipulation
6 Under SBI Car Loan Scheme, the loan must be closed before borrower attains
the age of _______ years.
a) 60 years b) 75 years
c) 65 years d) 70 years
7 What is the maximum age limit for sanction of car loan?
a) 55 Years b) 65 Years
c) 67 Years d) 70 Years
8 What is the maximum number of car loans that can be sanctioned to an
Individual under SBI Car Loan Scheme?
a) 1 b) 2
c) 3 d) Any number of car loans with the
approval of GM.
9 What is the minimum Net Monthly Income required for a salaried person to
become eligible for SBI Car loan?
a) Rs.25,000/- b) Rs.20,000/-
c) Rs.10,000/- d) None of the above
10 What is the minimum Net Annual Income required for a Businessmen to
become eligible for SBI Car loan?
a) Rs.2 Lakhs b) Rs.2.50 Lakhs
c) Rs.4 Lakhs d) Rs.3.00 Lakhs
11 What is the maximum loan amount that can be sanctioned to a salaried person
under SBI Car loan scheme?
a) 30 times of NMI b) 48 times of NMI
c) 36 times of NMI d) 60 times of NMI
12 What is the maximum loan amount that can be sanctioned to an Agriculturist
under our car loan scheme?
a) 3 times of NAI b) 4 times of NAI
c) 5 times of NAI d) No such stipulation
13 What is the Turn Around Time (TAT) for processing the Car Loan proposals?
a) 2 days b) 7 days
c) 10 days d) 15 days
786
14 Please select the EMI/NMI ratio of an applicant, whose Net Annual Income is
between Rs.5 lacs to Rs.10 lacs under Car Loan Scheme.
a) Not to exceed 60% b) Not to exceed 40%
c) Not to exceed 50% d) Not to exceed 65%
15 What is the EMI/NMI ratio for car loan seekers who have already availed a
Home loan from our Bank and their Annual income is above Rs. 10.00 lakhs?
a) 50% b) 65%
c) 60% d) 70%
16 Income of ........ cannot be included for arriving at the loan eligibility for Car
Loans.
a) Spouse b) Father
c) Mother d) Father-in-law
17 Form 16 or IT Returns for last 2 years for Salaried Customers are waived for Salary
package Customers maintaining Salary Account with Bank for minimum ___
Months

a) 12 b) 6
c) 24 d) 36
18 Customers under Salary Package / Tie –up need to maintain % as margin for
car loans
a) 5% b) 10%
c) 15% d) No margin requirements
19 Women borrower gets ___ in interest rate concession under Car loan Scheme?
a) 0.05% b) 0.10%
c) 0.25% d) No interest concession available
20 Compilation of Opinion Reports / Assets & Liabilities Statements is waived for all
car loans up to Rs. 20.00 lacs; if, the CIC Score is _________ and above.
a) 750 b) 650
c) 800 d) 721
21 In case of Joint accounts in SBI Car Loan, repayment period will be counted on
the basis of age of ____
a) The younger borrower. b) Average age of the co-applicants
c) The elder borrower. d) None of the above
22 Which of the following statements is not correct regarding maximum loan
amount under Car Loans?
a) The maximum loan amount that can be b) Maximum loan that can be granted
granted would be restricted to 48 times to Self Employed/ Professionals/
the net monthly income of salaried Businessmen should be up to 4
persons. times the Net Profit or Gross
Taxable Income per annum as per
ITR, after adding back depreciation
c) The maximum loan amount that can be d) All the above are correct.
granted to Agriculturists should be up
to 4 times the Net Annual Income.
23 In case of Car Loans, what are the income documents required to be obtained
from an applicant whose income is only from agriculture activity
a) Documents showing Land ownership b) Income certificate from Panchayat
787
 c) Documents showing both land d) IT Returns along with Documents
ownership and cropping pattern showing both land ownership and
cropping pattern
24 What is the preliminary CIC report to be taken for car loan applicants
a) CIBIL b) CRIF High Mark
c) Equifax d) Experian
25 The second Credit Information Company (CIC) report for Car Loans has to be
taken from
a) CRISIL b) ICRA
c) EXPERIAN d) HIGHMARK
26 The second Credit Information Company (CIC) report for Car Loans has to be
taken for loans sanctioned ___________
a) Rs.10 lakhs and above b) Above Rs.4 lakhs
c) Above Rs.5 lakhs d) Rs.5 lakhs and above
27 The rate of interest applicable in SBI Car Loan Scheme will depend on
a) CIC Score b) Term of the Loan
c) Both a) & b) d) None of the above
28 The revised CIBIL CreditVision Score applicable for All Govt./ Defense Salary
Package customers:
a) ≥ 650 b) ≥ 700
c) ≥ 689 d) ≥ 606
29 DSP/PMSP/IGSP Customers can avail car loan from which of the following places
a) Permanent Place of residence b) Place of Posting
c) Place where salary account is d) All the above
maintained.

30 What is the pre-payment penalty for car loans?

a) 0.5% of the pre-payment amount, b) 1% of the pre-payment amount,
monthly quarterly
c) 1.5% of the pre-payment amount, d) No prepayment penalty
quarterly
31 Prepayment penalty for car loans are levied at 1% of the prepayment amount
plus GST, quarterly, in case prepayment within ___________ years from the date
of disbursement.
a) 3 b) 1
c) 2 d) No Prepayment penalty

32 Foreclosure charges will be levied at the rate of ____________ in case foreclose

within 2 years from the date of disbursement of loan.
a) 3% + GST on theo-balance b) 2% + GST on theo-balance
c) 1% + GST on theo-balance d) No foreclosure charges
33 Car loan EMI can be re-set if the loan outstanding is at least _ and reduction
in rate of interest is ___ or more.
a) 1 lac and 1% b) 2 lacs and 2%
c) 5 lacs and 5% d) 5 lacs and 1%
34 Copy of _______ (application for registration of motor vehicle) to be obtained
and ensured that it contains correct particulars e.g. name, permanent address,
788
 PAN, vehicle description, bank’s hypothecation clause etc.
a) Form 29 b) Form 20
c) Form 30 d) Form 34

35 Vehicle registration details are to be verified from _ website.

a) vehicle.gov.in b) vahan.nic.in
c) vehicle.nic.in d) vahan.gov.in
36 Verification of vehicle registration details from the website ‘vahan.nic.in’ should
be made in all car loans as soon as vehicle registration is known or within _____of
disbursement whichever is earlier.

a) A month b) 60 days
c) 15 days d) 45 days
37 Re-verification of registration of vehicle in vahan.nic.co need be done again by
____
a) By Branch official b) Maintenance official in BPR
branches
c) Official appoint by RBO in Non BPR d) b) or c)
branches.
38 Application to RTO for making entry of Hypothecation subsequent to registration
a) Form 29 b) Form 20
c) Form 30 d) Form 34
39 In respect of Car Loans, if the borrower fails to get the vehicle registered, with
hypothecation charge in favour of the Bank, within ___ days from the date of
disbursement, charge of Rs. __ per month may be recovered.
a) 60 days 2,500/- b) 120 days 2,500/-
c) 60 days 5,000/- d) 120 days 5,000/-
40 In case of Car Loans, copy of Insurance policy for the 1st year is to be obtained
and retained with the loan documents and for subsequent years, it is not required
to be obtained from the borrowers. This is true in case of___________.
a) All standard Car Loans below Rs.20.00 b) All standard Car Loans above
Lacs Rs.20.00 Lacs
c) All standard Car loans irrespective of d) All Car loans irrespective of their
the loan amount IRAC status and amount of loan
41 The vehicle purchased is to be kept comprehensively insured in the name of the
borrower for the ........... or at least ...........above the loan amount outstanding,
whichever is higher
a) Market value, 20% b) Distress value, 20%
c) Distress value, 10% d) Market value & 10%
42 Who is the empowered authority to approve the deviation in CIC score ‘-1’ for
car loan applicant/s
a) DGM (B&O) b) GM (NW)
c) RM (RBO) d) None of the above

789
43 Car loan of applicants with CIC score -1 can be accepted with deviation when
a) Customer have bank account for b) Monthly single credit of Rs. 25000/-
more than 12 months. in the account other than system
credit for last 12 months. Income tax
returns are electronically filed and
status of Acknowledgement receipt
(ITR-V) verified online.
c) Verification of the business/profession d) All the above
continuity is done through online
verification of TAN/TIN/GSTIN
Number, which contains Date of
Registration and Address

44 Maximum No of Car loans to a borrower at any point of time

a) 1 b) 2
c) 3 d) Any number
45 Post disbursement inspection of vehicle must be carried out within _____ days
from the date of disbursement in respect of auto loans.
a) 30 b) 20
c) 15 d) 10
46 Penalty is to be recovered if the borrower fails to get the vehicle registered with
hypothecation charge in favour of the Bank, within __________ days from the
date of disbursement?
a) 30 b) 60
c) 90 d) 120
47 What is the penal amount to be recovered per month from borrower if he fails to
get vehicle registered within the days prescribed by the bank or charge of bank
gets vacated before liquidation of the loan?
a) 1000+GST b) 2000+GST
c) 3000+GST d) 2500+GST
48 In BPR Centres, migration of the auto loan documents PDDs to respective
RACPCs and RASMECCs to be effected
a) within 1 month from the date of b) within 3 months from the date of
disbursement disbursement
c) within 4 months from the date of d) within 2 months from the date of
disbursement disbursement
49 For the verification of vehicle registration details from the website ‘vahan.nic.in’
charge has been fixed as ________ which is to be paid on-line through SBI
Internet Banking.
a) Rs.150/- b) Rs.100/-
c) Rs. 50/- d) No such charge
50 Branches with NPA in Auto Loan more than __________ should be barred, by
withdrawing their sanctioning powers in Auto Loans; subject to approval from
Circle Management.
a) 2% b) 1%
c) 1.50% d) 0.50%
790
51 Which of these statements is correct regarding transfer of Car Loan accounts
from one branch to another?
a) Only Standard Car Loan accounts can b) Car Loan accounts can not be
be transferred from one Branch to transferred.
another at the request of borrower.
c) Only NPA Car Loan accounts can be d) None of the above
transferred from one branch to another
for better monitoring.
52 Number of notices to be served to the defaulting car loan borrower before and
after repossession of the vehicle
a) 6 b) 5

c) 3 d) 4

53 In case of seizure of Cars / Vehicles under Auto Loan Scheme, what is the trigger
point for seizure?
a) Said Car Loan account becoming NPA b) When account is irregular for more
than 30 days i.e., SMA1
c) Account has been categorized as d) Three months from the date of NPA
Doubtful Assets
54 In case of NRI Car Loans, the Resident Indian who will join the loan with the NRI
will be a..........in the loan.
a) Neither a Coborrower nor a Guarantor b) Guarantor
c) Either a Co-borrower or a Guarantor d) Co-borrower
55 Which of these statements is NOT correct regarding NRI Car Loans?
a) Tangible security covering at least b) NRIs having accounts with other
35% of the loan amount is required Banks for the last 24 months with a
minimum balance/ fixed deposits of
Rs.50,000/- are also eligible
c) Collateral security is waived. d) The borrower will have to open NRI
a/c with SBI for repayment of EMIs
56 What is the minimum Net Annual Income (NAI) of the applicant to become
eligible under NRI Car Loan Scheme
a) US $ 5000 or its equivalent b) US $ 10000 or its equivalent
c) US $ 12000 or its equivalent d) US $ 15000 or its equivalent
57 What is the maximum loan amount sanctioned under NRI Car loan scheme?
a) 12 times of Net Monthly income b) 15 times of Net Monthly income
c) 18 times of Net Monthly income d) 24 times of Net Monthly income
58 What is the Margin under SBI Assured Car loan scheme?
a) Nil b) 10%
c) 5% d) 15%
59 What is the Minimum income requirement under SBI Assured Car loan scheme??
a) Rs. 1 lac b) Nil

c) Rs 3 lac d) Rs 2.50 lac

791
60 What is the Maximum age criteria under SBI Assured Car loan scheme? s
a) 70 years b) 75 years
c) No cap d) 60 years

61 What is the Minimum age criteria under SBI Assured Car loan scheme?
a) No cap b) 21 years
c) 17 years d) 18 years

62 What is the minimum loan amount under SBI Super Bike Loan Scheme?
a) Rs.2,00,000/- b) Rs.2,50,000/-
c) Rs.2,75,000/- d) Rs.3,00,000/-

63 What is the maximum age limit for sanction of Super Bike loan?
a) 67 years b) 60 years
c) 65 years d) 70 years

64 What is the EMI/NMI ratio for High value Super Bike loan when the borrower’s
income is above Rs. 10.00 lakhs
a) 50% b) 65%
c) 60% d) 70%
65 What is the Maximum Loan Tenor under High value Super Bike loan?
a) 6 years b) 5 years
c) 8 years d) 7 years
66 What is the maximum age limit for sanction of Two Wheeler Loan Scheme?
a) 67 years b) 57years
c) 65 years d) 70 years
67 What is the minimum Net Annual Income required for availing loan under Two-
Wheeler loan Scheme?
a) Rs. 150000/- b) Rs.250000/-
c) Rs.300000/- d) Rs.400000/-
68 What is the minimum and maximum loan under Two-Wheeler Loan Scheme?
a) 30000, 250000 b) 30000, 400000
c) 25000, 300000 d) 20000, 300000
69 What is the Margin required for availing loan under Two-Wheeler Loan Scheme?
a) 15% b) 25%
c) 10% d) 30%
70 What is the maximum EMI/NMI ratio for availing Two Wheeler loan scheme for all
the applicants?
a) 40% b) 45%
c) 50% d) 60%
71 What is the Maximum Loan Tenor under Two-Wheeler Loan Scheme?
a) 36 months b) 60 months
c) 48 months d) 24 months
72 Minimum CIBIL score requirement under Green Car loan?
a) 721 b) 700
c) 650 d) 750
792
73 What is the Margin required for availing loan under High Value Super Bike Loan
Scheme?
a) 10% b) 15%
c) 20% d) 25%

74 What is the Maximum loan under PA2WheeL- SBI Easy Ride scheme?
a) 1 lakh b) 2 lakhs
c) 3 lakhs d) 5 lakhs

75 Repayment period for SBI Green Car loan is

a) 3 - 8 years b) 3 - 7 years
c) 3 - 5 years d) 2 - 8 years

76 Concession of _____________ bps in applicable ROI is available for SBI GREEN

CAR LOAN.
a) 10 b) 20
c) 15 d) 30
77 What is the maximum age limit for sanction of car loan under Assured Car loan
Scheme?
a) 60 years b) 65 years
c) 67 years d) No such stipulation
78 What is the minimum age limit for sanction of car loan under Assured Car loan
Scheme?
a) 21 years b) 18 years
c) 20 years d) 25 years
79 What is the minimum loan amount under Assured Car Loan Scheme?
a) 250000 b) 100000
c) 200000 d) 300000
80 What is the eligible amount under SBI Assured Car Loan Scheme?
a) 50% of unencumbered FDR b) 60% of unencumbered FDR
c) 75% of unencumbered FDR d) 100% of unencumbered FDR
81 Which of these statements about "Assured Car Loans" is NOT correct.

a) The loan should be repaid before the b) Loan amount can be up to 100% of
borrower attains the age of 75 years. the amount of Fixed Deposit

c) Pre-sanction survey is waived if the d) Applicants with CIBIL scores less

existing address with the Bank remains than 600 and those in -1, 0 & 1 to 5
same as the present address. categories are also eligible.

82 What is the minimum Net Annual income required for sanctioned of car loan
under SBI Loyalty Car Loan Scheme?
a) Rs.2,00,000/- b) Rs.2,50,000/-
c) Rs.3,00,000/- d) Rs.4,00,000/-

793
83 .......................Margin is stipulated on On-Road price of the vehicle in case of
Loyalty Car Loans.
a) NIL b) 5%

c) 10% d) 15%

84 In case of Loyalty Car Loans, extension of Mortgage will not be compulsory for
Loans up to

a) Rs. 5.00 Lacs b) Rs. 10.00 Lacs

c) Rs. 15.00 Lacs d) Rs. 20.00 Lacs

85 Ms. Kiran, an IT Professional, would like to purchase Honda City from Honda’s
Auto Terrace – a Certified Pre-Owned Car Outlet. Which car loan variant can be
offered to Ms. Kiran?
a) Car Loan Lite b) Green Car Loan
c) Certified Pre-Owned Car Loan d) Assured Car Loan

86 What is the minimum loan sanctioned under Certified Pre-Owned Car Loan?

a) 250000 b) 200000
c) 100000 d) 300000

87 What is the maximum loan sanctioned under Certified Pre-Owned Car Loan?
a) 20.00 lakhs b) 10.00 lakhs
c) No such limit d) 15.00 lakhs
88 What is the maximum permissible age of the car under Certified Pre-Owned Car
Loan?
a) 10 years b) 7 years
c) 5 years d) No such stipulation
89 What is the Margin requirement for availing loan under Certified Pre-Owned Car
Loan?
a) 15% b) 25%
c) 10% d) 20%
90 Which of the following statements is incorrect regarding Certified Pre-owned Car
Loan Scheme?
a) Age of the vehicle should not be more b) The ownership should not have
than 8 years old changed more than 2 times
c) Minimum Net Annual income required d) 80% of the Invoice or IDV (Insured's
to be eligible for this loan is Rs. Declared Value), whichever is lower
2,00,000 can be financed.
91 Pre-Approved Car Loan (PACL) is available for customers in which online
platform?
a) CRM b) INB

c) YONO d) None of the above

794
 92 What is the minimum age limit for sanction of Pre-Approved Car Loan?
a) 18 Years b) 21 Years
c) 25 Years d) No specific Age criteri
93 What is the CIC(CIBIL) cut off score to be eligible for PACL?
a) 700 b) 80
c) 750 d) 650
94 Pre-approved Car Loan can be sanctioned as
a) Term Loan b) Overdraft
c) Either a or b d) None of the above
95 The offer of PACL to the pre-selected customers will be valid for __________days

a) 30 b) 60
c) 45 d) 90
96 Under Contactless lending platform (CLP) which of the following category of
customer is not eligible presently to avail a Car loan
a) Salaried customers b) Agriculturalist
c) Self employed/Professional d) Businessman
97 The Contactless Lending Platform (CLP) for P-Segment borrowers is a digital
platform which is accessible through URL
a) www.psbloansin59minutes.com. b) www.vahan.nic.in
c) www.gov.psbloansin60minutes.com d) www.sbiloansin59minutes.com
98 Car Loan Journey on the CLP platform is passes through ________ stages.
a) Five b) Four
c) Three d) Two
99 The maximum time limit for sanction/ rejection by the bank selected by the
customer will be _______ days from the date of receipt of in-principle sanction in
CLP portal

a) 7 b) 10
c) 15 d) 30
Online PSB Loans Ltd, a Contactless lending platform for smooth sanctioning of
100 personal segment loan is developed by
a) IDRBT b) SIDBI
c) GITC d) NABARD

795
 ANSWERS to MCQs - AUTO LOANS

1 B 2 B 3 C 4 C 5 C

6 B 7 D 8 C 9 A 10 D

11 B 12 A 13 A 14 A 15 B

16 D 17 A 18 B 19 D 20 D

21 C 22 C 23 C 24 A 25 C

26 C 27 C 28 A 29 D 30 D

31 D 32 B 33 D 34 B 35 B

36 A 37 D 38 D 39 B 40 A

41 D 42 C 43 D 44 C 45 C

46 D 47 D 48 D 49 C 50 C

51 A 52 C 53 B 54 B 55 A

56 C 57 C 58 A 59 B 60 C

796
61 D 62 B 63 C 64 C 65 B

66 B 67 A 68 D 69 A 70 C

71 C 72 A 73 B 74 C 75 A

76 B 77 D 78 B 79 C 80 D

81 A 82 A 83 A 84 B 85 C

86 D 87 B 88 A 89 A 90 C

91 C 92 B 93 A 94 A 95 A

96 B 97 A 98 B 99 A 100 B

797
 MCQs – Misc P Seg Loans

1 Personal Gold Loans cannot be given against

a) Mangal Sutra b) Bracelet

c) Specially minted gold coins sold by d) 24 carat Gold Bars

SBI

2 Maximum Personal Gold Loans that can be sanctioned to an individual in the

same CIF?

a) 1 b) 2

c) 3 d) No restrictions as the loan is fully

secured

3 Gold loan can be given for specially minted gold coin(s) sold by Bank. What
is the maximum permissible weight per customer?

a) 30 grams b) 40 grams

c) 50 grams d) 60 grams

4 What is the minimum age for sanction of Gold Loan under SBI Personal Gold
Loan Scheme?

a) 18 years b) 19 years

c) 20 years d) 21 years

5 What are the Minimum and Maximum loan amounts that can be sanctioned
under SBI Personal Gold Loan Scheme?

a) Rs.10,000 and Rs.10 lacs b) Rs.10,000 and Rs.15 lacs

c) Rs.20,000 and Rs.50 lacs d) Rs.20,000 and Rs.15 lacs

6 What is the maximum repayment period under Personal Gold Loan Scheme?

a) 12 months – Interest & Principal can b) 24 EMIs

be paid at the end of the tenor

c) 36 EMIs d) 36 months – Monthly interest to be

serviced

798
7 Which of these Gold Loan schemes has the maximum repayment period of 12
months?

a) SBI Personal Gold Loan b) SBI Personal Liquid Gold Loan

c) SBI Gold Loan (Bullet Repayment) d) SBI Gold Loan Lite

8 Under which scheme of Gold loan, the limit is sanctioned by way of Overdraft
limit with cheque book facility?

a) SBI Personal Gold Loan b) SBI Personal Liquid Gold Loan

c) SBI Gold Loan (Bullet Repayment) d) No such scheme is available

9 What is the margin to be maintained under SBI Personal Gold Loan Scheme?

a) 10% b) 20%

c) 25% d) 35%

10 What is the maximum repayment period under SBI Liquid Gold Loan Scheme?

a) 12 Months b) 18 Months

c) 24 Months d) 36 Months

11 Which department in the Bank advises the Market Value and Advance value in
respect of the gold loans?

a) PBBU Department b) Precious Metals Department

c) GITC Department d) Banking Operations Department

12 What is the maximum repayment period permitted for staff gold loans,
sanctioned for the purpose of education/land or building purchase/medical
expenses?

a) 24 months b) 36 months

c) 48 months d) 60 months

13 Which of the following is not the accepted method in verifying genuineness

and purity of gold ornaments?

a) Touch Stone Method b) Nitric Acid Test Method

c) Specific Gravity Test Method d) Weighing method

799
14 Notice under Section has to be served to defaulting borrower before
initiation auction in Gold Loans.

a) 167 of Indian Contract Act b) 176 of Indian Contract Act

c) 167 of N.I. Act d) 176 of N.I. Act

15 Interest on the account of deceased Gold Loan Borrower to be charged at

Rate

a) No interest to be charged from date b) SB rate of interest to be charged in

of death of borrower Gold loan of deceased borrower

c) Interest at contracted rate to be d) Interest at 1 year MCLR rate to be

charged
charged

16 Insurance for the Gold Retention Limit of the branch will be obtained by
department at every year.

a) PPBU, 1st July every year b) PPBU, 1st March every year

c) Precious Metal Department, 1st July d) Banking Operations Department,1st

every year July every year

17 Insurance of gold ornaments against which the Bank has sanctioned loan is
to be arranged. The insurance cost is borne by ______.

a) Borrower b) Bank

c) Borrower & Bank in 50-50 ratio d) It is optional

18 What is the periodicity for verification of PER Segment Gold Loan Ornaments
at the branches?

a) Monthly by officer other than joint b) Quarterly by officer other than joint
custodian custodian

c) Half Yearly by officer other than d) Yearly by officer other than joint
custodian
joint custodian

19 Who is responsible for ensuring genuineness and purity of gold ornaments?

a) Cash Officer/Award Cash Officer b) Joint Custodians

c) Field Officer & Cash Officer d) Branch Manager & Cash Officer

800
20 Who would be initialing in Gold Loan Ledger?

a) Borrower and Cash Officer b) Only Borrower

c) Two authorised officers in whose joint d) Borrower, Joint Custodians and

custody are to be held Branch Manager

21 Whether part delivery of ornaments can be given to borrower?

a) No, the loan account has to be fully b) Yes, if he comes for second Gold
closed. Loan

c) Yes, provided he furnishes fixed d) Yes, provided the advance value of

deposit to cover advance value the remaining ornaments fully cover
the outstanding in account.

22 For conducting auction of Gold ornaments, prior approval of _ is required

a) AGM - RBO b) DGM (B&O)

c) Branch Manager d) No prior approval is required

23 What is the LTV ratio stipulated by RBI in respect of Personal Gold Loans?

a) 65% b) 75%

c) 80% d) 85%

24 How is LTV ratio calculated for Gold Loans?

a) LTV ratio has to be calculated on the b) LTV ratio has to be computed

total outstanding of the loan account against current value of the gold

c) LTV ratio has to be calculated on the d) Options b & c are correct.

total outstanding of the loan a/c
including accrued interest

25 When should the branch send the first notice, in case of LTV breach?

a) On the 7th day of LTV breach b) On the day of LTV breach

c) On the 15th day of LTV breach d) On the 21st day of LTV breach

801
26 In case of breach of LTV ratio, what is the stipulation for issue of third notice
to the Gold loan borrower?

a) After 30 days from the 1st Notice b) After 15 days from the 1st Notice

c) After 10 days from the 2nd notice d) After 10 days from the 2nd Notice

27 Tallying of the closing balance of Gold Loan bags with the Ledger shall be
done on ____________ by the joint custodian
a) monthly basis b) forthnightly basis

c) daily basis d) Half yearly basis

28 Gold retention limit which will be approved by the

a) AGM & RM b) DGM (B&O)

c) DGM (PBBU) d) GM Network

29 Minimum carat of gold to be accepeted as security

a) 18 b) 24

c) 20 d) 22

30 What are the pre-payment charges for P-gold loan

a) 1% of the outstanding b) 0.5% of the loan amount

c) 1.5% of the loan amount d) Nil

31 Gold loan will be called up when?

a) The value of gold is less than the b) The account becomes NPA
outstanding

c) Completion of the tenure of the d) Anyone of the above

Agri Gold Loan

32 Which branch can sanction Online Loan against Shares?

a) All branches b) All Personal Banking Branches

c) Personal Banking Branch Delhi d) Specialised Securities Finance

Branch Worli

802
33 What is the maximum loan sanctioned against Online Loan against Shares
which are in physical format?

a) Rs. 5 lacs b) Rs.10 lacs

c) Rs.15 lacs d) Rs.20 lacs

34 What is the margin for Online Loan against Shares?

a) 10% b) 25%

c) 40% d) 50%

35 What is the Maximum loan sanctioned against SBI Mutual Fund, when the
units are in Demat Format?

a) Rs.1,00,000/- b) Rs.5,00,000/-

c) Rs.10,00,000/- d) Rs.20,00,000/-

36 What is the margin to be maintained while sanctioning loan against

NSCs/KVPs?

a) 30% of FV + accrued interest b) 40% of FV + accrued interest

c) 45% of FV + accrued interest d) 50% of FV + accrued interest

37 The particulars of the life insurance policy have to be entered in ___ at the
time of sanction of loan.

a) Security Ledger b) Security Register

c) Miscellaneous Securities Register d) Branch Document Register

38 What type of charge do we have in case of Loan against Life Insurance Policy

a) Pledge on Policy b) Assignment on Policy

c) Lien on Policy d) Hypothecation on Policy

39 How the loan eligibility will be calculated in respect of life insurance policies?

a) Bank calculates eligibility based on b) Insurance company will provide the

the premium paid amount value called surrender value

c) Loan eligibility will be calculated d) Based on IRDAI’s advance value

based on the NAV of the policy published at monthly intervals

803
40 What is the minimum margin to be maintained while sanctioning loan against
Insurance Policies (Tenor : upto 12 months)

a) 5% of surrender value b) 10% of surrender value

c) 15% of surrender value d) 20% of surrender value

41 What is the minimum age limit for availing advance against RBI Relief Fund?

a) Individuals with 18 years of age b) Individuals with 19 years of age

c) Individuals with 20 years of age d) Individuals with 21 years of age

42 What is the minimum loan amount sanctioned under Sovereign Gold Bonds
Scheme?

a) Rs.10,000/- b) Rs.20,000/-

c) Rs.50,000/- d) Rs.1,00,000/-

43 Please expand OPAS

a) Online Project Approval System b) Online Project Approved System

c) Online Project Assessment System d) Online Paper Approval System

44 What is the prescribed Margin for Loan against Bank’s Time Deposits in case
the residual tenure of Time Deposit is up to 36 months, as on the date of
availing of loan?

a) NIL b) 5%

c) 10% d) 15%

45 As per recent circular instructions, how many Demand loans can be

sanctioned against one Time Deposit?

a) 1 b) 2

c) 3 d) With the approval of AGM for loans

exceeding 3

804
 Answers to MCQs – Misc P Seg Loans

1 D 2 C 3 C 4 A 5 C

6 C 7 C 8 B 9 A 10 C

11 B 12 D 13 D 14 B 15 C

16 D 17 B 18 B 19 A 20 C

21 D 22 C 23 B 24 D 25 B

26 A 27 C 28 B 29 A 30 D

31 D 32 D 33 B D B 35 D

36 B 37 C 38 B 39 B 40 C

41 D 42 B 43 A 44 B 45 A

805
 MCQs - Unsecured P Seg Loans

1 Under Xpress Credit scheme, Maximum Loan amount is --------------?

a) 12 times of NMI b) 12 times of Gross Salary

c) 24 times of NMI d) 24 times of Gross Salary

2 What is the maximum repayment period for Xpress Credit scheme

a) 72 months b) 60 months

c) 48 months d) 120 months

3 In case of Xpress Credit, no prepayment/ foreclosure charges will be

applicable if the account is closed from the proceeds of a new loan account
opened under the same scheme. Otherwise, a prepayment penalty of _____
will be charged.
a) 1% b) 4%

c) 2% d) 3%

4 In Xpress credit scheme of personal loans as overdraft facility, minimum

amount of loan can be sanctioned up to:

a) 1 lac b) 5 lacs

c) 2 lacs d) No minimum ceiling

5 The term “FORCE NUMBER” will be used by

a) Army forces b) Central Armed Police Forces

c) Navy forces d) Air Force Staff

6 What is the EMI/NMI ratio applicable for loans under SBI Xpress Credit?
a) 50 b) 60

c) 40 d) None of the above

7 What is the EMI/NMI ratio applicable for loans under SBI Xpress Elite?

a) 50 b) 60

c) 40 d) None of the above

806
8 Our Bank has recently approved following modifications in Eligibility Criteria
under Xpress Credit to Salary Package customers of Govt./ Defense. Find
out the revised instruction.

a) Permanent employees b) Permanent employees

with a minimum of 1 year’s with a minimum of 2 year’s

length of service length of service

c) Salaried Employees with a d) Salaried Employees with a minimum

minimum service of 6 months service of 1 year are eligible
are eligible

9 Which of the following is newly introduced Xpress Credit variant

a) Real Time Xpress Credit b) Xpress Elite

c) Xpress Credit to Non permanent d) Xpress Lite

employees

10 Under Xpress Credit scheme, Maximum Loan amount for Teachers of

Government Aided Schools is ------?

a) 12 times of NMI b) 12 times of Gross Salary

c) 24 times of NMI d) 24 times of Gross Salary

11 How many CIC reports to be obtained in case of a loan amount above Rs.4.00
lacs in respect of Xpress credit loans?

a) 5 b) 4

c) 2 d) 3

12 The CIC Reports that needs to be obtained for Xpress Credit loans above
Rs.4 lacs are

a) CIBIL b) CIBIL & CRIFHIGH MARK

c) CIBIL & Experian d) CIBIL & Equifax

13 Govt. Salary Package Applicants with the following minimum CIBIL Credit
Vision score will be eligible under Xpress Credit Scheme:

a) CIC score of above 591 b) CIC score of 650 and above

c) CIC score of 670 and above d) CIC score of above 685

807
14 For Other (including Salaried customers other than Govt. Salary Package
accounts) Applicants with the following minimum CIBIL Credit Vision score
will be eligible under Xpress Credit Scheme:

a) CIC score of above 591 b) CIC score of 650 and above

c) CIC score of 670 and above d) CIC score of above 685

15 A Public Sector Unit Officer is having gross monthly salary of more than Rs
2 lacs per month and maintains salary account with HDFC bank. Which
variant of personal loan is best suited for him/her.

a) Insta Credit b) Xpress Elite

c) Xpress Credit d) Xpress Lite

16 Xpress Elite is a Personal Loan variant for senior officials of the Central/
State Governments, Defence Establishments, PSUs and Quasi Government
Bodies drawing a monthly net salary of above
a) Rs.1.00 lac b) Rs.2.00 lacs

c) Rs.3.00 lacs d) Rs.0.50 lacs

17 What is the maximum loan amount which can be sanctioned under Xpress
Elite?

a) Rs.15.00 lacs b) Rs.20.00 lacs

c) Rs.10.00 lacs d) Rs.35.00 lacs

18 Bank has launched a personal loan product variant to cater to the personal
needs of our salary package customers earning a net monthly income
between Rs.7000 & Rs.14,999. Can you name the product?

a) Xpress Elite b) SBI Insta Credit

c) Xpress Credit d) Xpress Lite

19 What is the EMI/NMI ratio applicable for loans under SBI Xpress Lite?

a) 50 b) 60

c) 40 d) None of the above

20 What is the Maximum loan which can be sanctioned under SBI Xpress Lite?

a) Rs.1,00,000 b) Rs.1,80,000

c) Rs.1,50,000 d) None of the above

808
21 What is the maximum repayment period applicable under SBI Xpress Lite?

a) 18 months b) 24 months

c) 30 months d) 12 months

22 Minimum net monthly income for RTXC (in Rs)

a) 15000 b) 10000

c) 50000 d) 100000

23 Minimum net monthly income for RTXC-Elite (in Rs)

a) 15000 b) 100000

c) 50000 d) 10000

24 Maximum loan amount under RTXC (in lakhs)

a) 10 lakhs b) 20 lakhs

c) 30 lakhs d) 35 lakhs

25 Maximum loan amount under RTXC-Elite (in lakhs)

a) 10 lakhs b) 20 lakhs

c) 30 lakhs d) 35 lakhs

26 Maximum permitted EMi/NMI ratio under RTXC

a) 50% b) 55%

c) 60% d) 45%

27 Maximum permitted EMi/NMI ratio under RTXC-Elite

a) 50% b) 60%

c) 55% d) 45%

28 RTXC variants are available in…..

a) INB b) Branch

c) YONO app d) All the above

809
29 In respect of RMP Xpress Credit for employees of Private Schools &
Colleges, the institute should be approved by

a) DGM(B&O) b) GM(NW)

c) Circle CGM d) DMD (RB)

30 In respect of RMP Xpress Credit for employees of Loss-making State PSUs

it should be approved by

a) DGM(B&O) b) GM(NW)

c) Circle CGM d) DMD (RB)

31 What is the validity period of offer made to preselected customer for SBI Insta
Credit?

a) 1 month b) 2 months

c) 3 months d) 6 months

32 What is the maximum loan amount which can be sanctioned under SBI Insta
Credit?

a) 1 lac b) 50% of Xpress Credit limit

c) 5 lacs d) 3 lacs

33 What is the facility and minimum loan amount that can be sanctioned under
PAPL scheme

a) Term Loan - 20,000 b) Demand Loan - 25,000

c) Term Loan - 50,000 d) None of the above

34 What is the maximum loan amount that can be sanctioned under PAPL
scheme

a) 5.00 lacs b) 1.00 lac

c) 3.00 lacs d) 4.00 lacs

35 What is the facility and minimum loan amount that can be sanctioned under
Pre-approved Xpress Credit Loan (PAXCL) scheme

a) Term Loan - 20,000 b) Demand Loan - 25,000

c) Term Loan - 25,000 d) None of the above

810
36 What is the maximum loan amount that can be sanctioned under Pre-
approved Xpress Credit Loan (PAXCL) scheme

a) 2.00 lacs b) 8.00 lacs

c) 3.00 lacs d) 5.00 lacs

37 What is the entry age for sanction of Pre-approved Xpress Credit Loan
(PAXCL) scheme?

a) 18-58 years b) 18-56 years

c) 21-60 years d) 21-58 years

38 What is the maximum repayment allowed under Pre-approved Xpress Credit

Loan (PAXCL) scheme

a) 12 months b) 24 months

c) 60 months d) 72 months

39 What is the repayment period for pensioners and family pensioners, if the
age of the pensioner is below 72 years at the time of sanction

a) 24 months b) 72 months

c) 48 months d) 60 months

40 What is the maximum Pension Loan that can be sanctioned under Pension
Loan Scheme to Pensioners?

a) Rs.5.00 lacs b) Rs.7.50 lacs

c) Rs.14.00 lacs d) Rs.12.00 lacs

41 What is the maximum Pension Loan that can be sanctioned under Pension
Loan Scheme to Family Pensioners?

a) Rs.2.50 lacs b) Rs.4.50 lacs

c) Rs.14.00 lacs d) Rs.5.00 lacs

42 What is the maximum age within which Pension Loan can be sanctioned
under Pension Loan Scheme?
a) 66 years b) 68 years

c) 70 years d) 76 years

811
43 What is the maximum age within which Pension Loan has to be closed under
Pension Loan Scheme?
a) 70 years b) 72 years

c) 78 years d) 76 years

44 What is the maximum cap on loan amount for a pensioner with an age of 72
years

a) 18 months’ pension with a b) 18 months’ pension with a ceiling of

ceiling of Rs.7.50 lacs Rs.12.00 lacs

c) 18 months’ pension with a d) 18 months’ pension with a ceiling of

ceiling of Rs.14.00 lacs Rs.10.00 lacs

45 Under JAI JAWAN Pension Loan scheme, what is the loan amount stipulated
for family pensioners.

a) Rs.5.00 lacs b) Family pensioners are not eligible

c) Rs.4.50 lacs d) Rs.2.50 lacs

46 EMI/NMP (Equated Monthly Instalment/ Net Monthly Pension) should not

exceed ____ % in case of Pension Loan

a) Regular Pensions 50%, Family b) Regular Pensions 50%, Family

Pensions 25% Pensions 50%

c) Regular Pensions 50%, Family d) Regular Pensions 50%, Family

Pensions 60% Pensions 33%

47 Under RTXC, what is the maximum loan period

a) 72 months b) 50 months

c) 60 months d) 48 months

48 There should not be more than __ Pension Loans at a time against 1 PPO

a) 1 b) 2

c) 3 d) 4

49 What is the maximum loan amount that can be sanctioned under Pre-
approved Pension Loan (PAPNL) scheme

a) 2.00 lacs b) 8.00 lacs

c) 2.50 lacs d) 5.00 lacs

812
50 What is the maximum loan amount that can be sanctioned under Pre-
approved Insta Top Up Pension Loan (PAITPNL) scheme

a) 2.00 lacs b) 2.80 lacs

c) 2.50 lacs d) 5.00 lacs

51 What is the maximum repayment allowed under Pre-approved Insta Top Up

Pension Loan (PAITPNL) scheme

a) 12 months b) 24 months

c) 36 months d) 48 months

52 If any customer is eligible for two loan products i.e. Xpress Credit and PAPL
what will be the process?

a) Customer can avail both the b) Customer can avail only one loan,
loans simultaneously which loan limit is lower

c) Customer can avail only one d) Both the loans will be cancelled
loan, which loan limit is higher

53 Pre-Approved Personal Loan, does not include the following loan:

a) Xpress Credit Loans b) Pension Loans

c) Top Up Xpress Credit Loan d) Deposit Loans

54 Overdraft facility for Salary Package account holders is limited to ….

Months salary

a) 2 months of net salary b) 2 months of gross salary

c) 6 months of net salary d) 6 months of gross salary

55 What is the maximum overdraft limit under Platinum variant of Corporate

Salary Package
a) 40000 b) 75000

c) 150000 d) 200000

56 Overdraft under Corporate Salary Package has to be liquidated within a

maximum period of

a) 12 months b) 9 months

c) 6 months d) 18 months

813
57 Rs.2,00,000/- Overdraft limit has been restricted to which variant under OD
facility in corporate salary package accounts
a) Silver b) Gold

c) Diamond d) Platinum

58 Which variant in Overdraft in existing Salary Package Savings Accounts was

recently excluded?

a) Silver b) Gold

c) Diamond d) Platinum

59 “CSP Lite” will cover the salaried customers drawing net salary in the range
of _________ per month for Corporates having CSP tie-up with us.
a) Rs. 5,000 to below Rs 10,000 b) Below Rs 7,500

c) Rs. 7,000 to below Rs 14,999 d) None of the above

60 Maximum Loan eligibility for under Online Purchase of Consumer Durables/

Merchandise at Amazon & Flipkart portals for purchase of Consumer
Durables at POS through use of SBI Debit Card is _______

a) 25000 b) 75000

c) 50000 d) 100000

ANSWERS TO MCQs-Unsecured P Seg Loans

1 C 2 A 3 D 4 B 5 B

6 A 7 B 8 C 9 A 10 C

11 C 12 C 13 B 14 C 15 B

16 A 17 D 18 D 19 C 20 B

21 D 22 A 23 B 24 C 25 D

814
26 A 27 B 28 C 29 C 30 D

31 A 32 D 33 B 34 A 35 C

36 B 37 B 38 D 39 B 40 C

41 D 42 D 43 C 44 C 45 B

46 D 47 A 48 B 49 D 50 B

51 C 52 C 53 D 54 A 55 C

56 C 57 D 58 A 59 A 60 D

815
 MCQs – Education Loans

1 Education Loans are now sanctioned at _____?

a) Floating Interest rates b) Fixed Interest rates

c) Both Fixed & Floating Interest d) Floating Interest rates upto loan
rates depending upon the loan amount Rs. 4 lacs and at fixed rates
amount above Rs.4 lacs

.2 Students below 18 years of age are

a) Not eligible for education loans b) Eligible for education loans but only
with their parents

c) Eligible for loans upto Rs.4 lacs d) Not eligible for loans for studies abroad

3 The Nodal Bank for implementing Central Government's Interest Subsidy

scheme for Education Loans in the country is

a) State Bank of India b) Bank of Baroda

c) Canara Bank d) Andhra Bank

4 The maximum time limit for conveying sanction/ rejection of an Education

Loan is...................from the date of receiving the application along with all
supporting documents.

a) 15 days b) 12 days

c) 20 days d) 25 days

5 As per Reserve Bank of India guidelines, for the purpose of reporting

Priority Sector Lending, education loans with outstanding upto. ……. (for
studies in both India and abroad will only be taken into consideration.

a) Rs.7.50 lacs b) Rs.4.50 lacs

c) Rs.15 lacs d) Rs.20 lacs

6 To be eligible for Subsidy under Interest Subsidy Scheme on Education Loan

for Economically Weaker Section (EWS)-CSIS, the annual gross parental/
family income of the applicant borrower should not be more than

a) Rs.4.50 lacs b) Rs.7.50 lacs

c) Rs.10.00 lacs d) Rs.15 lacs

816
7 Ministry of HRD along with the Department of Financial Services,
Government of India has launched a common portal ................................ for
students to apply for education loans and to facilitate tracking and follow-up
of the loan

a) Gyan Laxmi Portal b) Vara Laxmi Portal

c) Vidya Laxmi Portal d) Veera Laxmi Portal

8 CGFSEL stands for

a) Credit Guarantee Fund Scheme b) Credit Guarantee Fund Scheme for

for Small Entrepreneur Loans SME Entrepreneur Loans

c) Credit Guarantee Fund Scheme d) Credit Guarantee Fund Scheme

for Secured Entrepreneur Loans for Education Loans

9 What is the annual guarantee fee (AGF) under CGFSEL scheme

a) 0.75% p.a. of the limit sanctioned b) 0.50% p.a. of the limit sanctioned

c) 0.50% p.a. of the outstanding d) 0.75% p.a. of the outstanding amount

amount

10 The CGFSEL will provide guarantee cover to the extent of

a) 100% of the amount in default b) 75% of the amount in default

c) 25% of amount in default d) 50% of the amount in default

11 What is the maximum period to invoke the guarantee in respect of education

loans from the date of NPA in CGFSEL scheme

a) 1 year from the date of NPA b) 30 days from the date of NPA

c) 90 days from the date of NPA d) 270 days from the date of NPA

12 As a measure of de-risking the Education Loan portfolio, every effort must

be made that the students who are availing Education Loans _ should be
suitably covered by

a) Above Rs.10 lacs, Life Insurance b) Above Rs.7.50 lacs, Personal Accident
Policy Insurance Policy

c) Above Rs.7.50 lacs, Life d) Above Rs.10 lacs, Personal Accident

Insurance Policy Insurance Policy

817
13 Opinion Report on Co-Borrower to be compiled for loans above Rs.__ lac
wherever Co-Borrowers are taken

a) 4 Lacs b) 10 Lacs

c) 7.5 Lacs d) 20 lacs

14 In respect of the Education Loans to the wards of the staff members, which
of the following is not correct?

a) Repayment period is 240 months b) Prior Administrative clearance is not

necessary

c) No lien should be noted against d) A mandate for deduction of the

installment due from the
the PF balance of staff member salary/pension should be obtained

15 Risk Scoring Model (RSM) in case of Educational Loans should be followed

where the Loan amount is

a) Above Rs.4 lacs b) Above Rs.7.5 lacs

c) Above Rs.10 lacs d) All Loans irrespective of limit

16 Education Loans for Medical Courses abroad can be considered provided

the College/University is approved by ____ in addition to approval by such a
regulatory authority in that country

a) University Grants Commission b) Indian Medical Association

c) Indian Council of Medical d) Medical Council of India

Research

17 What is the maximum loan that can be sanctioned under SBI Student Loan
for studies in India (other than Medical courses)?

a) Rs. 10 lacs b) Rs. 20 lacs

c) Rs. 40 lacs d) Rs. 1.50 lacs

18 What is the maximum loan that can be sanctioned under SBI Student Loan
for studies of MBBS/MD (Medical) in India?

a) Rs. 10 lacs b) Rs. 20 lacs

c) Rs. 30 lacs d) Rs. 1.50 lacs

818
19 What is the maximum loan that can be sanctioned under SBI Student Loan
for studies abroad?

a) Rs. 10 lacs b) Rs. 20 lacs

c) Rs. 40 lacs d) Rs. 1.50 lacs

20 Margin required to be brought in by the borrower for Student Loans up to Rs.

4.00 Lac is ........and above Rs. 4.00 Lac is......for studies in India.

a) 5% and 15% b) 5% and 10%

c) 10% and 15% d) Nil and 5%

21 Margin required to be brought in by the borrower for Student Loans up to Rs.

4.00 Lac is ........and above Rs. 4.00 Lac is......for studies Abroad.

a) 5% and 15% b) Nil and 5%

c) 10% and 15% d) Nil and 15%

22 Purchase of Books/equipment/instruments/computer, etc. considered for

student loan should be capped at of tuition fees.

a) 10% b) 20%

c) 5% d) 15%

23 Caution deposit /building fund/refundable deposit supported by Institution

bills/receipts the amount considered for loan should not exceed ____ of the
tuition fees for the entire course

a) 10% b) 20%

c) 5% d) 15%

24 Cost of two wheeler up to ___ can be included in the expenses considered

eligible for finance under student loan if secured by suitable third party
guarantee and/or tangible collateral security.

a) Rs.50000/- b) Rs.55000/-

c) Rs.60000/- d) Rs.75000/-

819
25 Which of these expenses are not covered under the project cost for
Education Loans for studies in India?

a) Cost of Computer/ Laptop b) Cost of Study Tour

c) Cost of a 2-wheeler (up to d) Living expenses (Excluding Hostel)

Rs.50,000)

26 Maximum repayment period for education loans is

a) 7 years inclusive of the course b) 15 years inclusive of the course period

period and moratorium & moratorium

c) 10 years inclusive of the course d) 15 years exclusive of the course

period and moratorium period & moratorium

27 What is the maximum moratorium period that is applicable to SBI Student

Loan Scheme?

a) 1 year after completion of the b) 6 months after getting the job

course

c) a) or b) whichever is earlier d) a) or b) whichever is later

28 What is the National portal for various education loan subsidy schemes

a) Jansamarth b) Vidya Lakshmi portal

c) Psbloansin59minutes d) None of the above

29 Maximum loan amount under Unsecured Scholar loan for list AA institute

a) 40 lacs b) 30 lacs

c) 50 lacs d) No upper limit

30 The second Credit Information Company (CIC) report for Education Loans
has to be taken for loans sanctioned ___________

a) Rs.10 lakhs and above b) Above Rs.4 lakhs

c) Above Rs.5 lakhs d) Rs.4 lakhs and above

31 What is the preliminary CIC report to be taken for Education loan applicants?

a) CIBIL b) CRIF High Mark

c) Equifax d) Experian

820
32 The second Credit Information Company (CIC) report for Car Loans has to be
taken from

a) CRISIL b) ICRA

c) EXPERIAN d) CRIF Highmark

33 Sanction of higher loan amount – SBI Student Loan, beyond the schemes &
other deviations, permission to be obtained from

a) DGM (B&O) b) CGM of Circle

c) GM Network d) AGM of Region

34 For higher loan limit in SBI Student Loan, the CGM of the Circle to approve
deviation on case-to-case basis, with a maximum cap of upto

a) Rs. 40 lacs b) Rs. 50 lacs

c) Rs. 100 lacs d) No deviation is permitted

35 What is the Minimum amount of Education Loan for studies in India that can
be sanctioned to Persons of Indian Original (PIO)/Overseas Citizen of India
(OCI) under Student Loan Scheme?

a) Rs.4 lacs b) Rs.10 lacs

c) Rs.40 lacs d) Rs.50 lacs

36 What is the Maximum amount of Education Loan for studies in India that can
be sanctioned to Persons of Indian Original (PIO)/Overseas Citizen of India
(OCI) under Student Loan Scheme?

a) Rs.4 lacs b) Rs.10 lacs

c) Rs.40 lacs d) Rs.50 lacs

37 In case of loans for studies abroad, a sum of ____ will be deposited, which
will be adjusted against the margin money / interest payable in respect of the
loan.

a) Rs.15000/- b) Rs.20000/-

c) Rs.10000/- d) Rs.5000/-

821
38 Which of these is not a category of Institute/ University under our Scholar
Loan Scheme?

a) List A b) List B

c) List C d) List D

39 Maximum Loan amount that can be granted for C category institutes under
Scholar Loan scheme (with security) is

a) Rs. 20 Lacs b) Rs. 30 Lacs

c) Rs. 40 Lacs d) Rs. 50 Lacs

40 What is the margin prescribed for Scholar Loans above Rs.4 lacs to Rs.7.50
lacs?

a) 5% b) 10%

c) 15% d) NIL

41 What is the margin prescribed for Scholar Loans above Rs 7.50 lacs?

a) 5% b) 10%

c) 15% d) NIL

42 The requirement of co-borrower has since been optional for all institutions
covered under ________. Choose the correct option.

a) List AA b) List AA & IIMs listed under list A

c) List AA and IITs listed under list d) Co-borrower is mandatory for all
A Education Loans

43 What is the concession in interest rates for girl children under SBI Scholar
Loan Scheme?

a) 0.25% b) 0.75%

c) 0.50% d) No concession is given

44 Scholar Loans cannot be granted jointly in the name of the student and
his/her

a) Parent/ Guardian b) Spouse

c) Parents-in law d) Brother/ Sister

822
45 Minimum and maximum finance available under SBI Global Ed-vantage
scheme is

a) Rs.20 lacs and Rs.1.50 Crores b) Rs.4 lacs and Rs.1 Crore

c) Rs.7,50,001/- and Rs.1.50 d) Rs.10 lacs and Rs.1 Crore

Crores

46 What is the margin prescribed for Global Ed-vantage Loans above Rs 7.50
lacs and upto Rs.20 lacs?

a) 5% b) 10%

c) 15% d) NIL

47 What is the margin prescribed for Global Ed-vantage Loans above Rs 20

lacs?

a) 5% b) 10%

c) 15% d) NIL

48 What is the applicable processing fee for Global Ed-vantage Loans?

a) Rs. 10,000/- + applicable GST b) 1% of Loan Component

c) Rs. 15,000/- + applicable GST d) 1.5% of Loan Component

49 What is the maximum moratorium period that is applicable to SBI Global Ed-
vantage Loan Scheme?

a) 6 months after completion of the b) 6 months after getting the job

course

c) a) or b) whichever is earlier d) a) or b) whichever is later

50 What is the minimum Margin that has to be brought in at the time of each
disbursement under Global Ed-vantage Loan?

a) 5% b) 10%

c) 15% d) 25%

51 In case of immovable collaterals accepted as collateral security, realizable

value should cover ______ in Global Ed-vantage Loans

a) 110% of the loan amount b) 100% of the loan amount

823
 c) 110% of loan amount plus d) 100% of loan amount plus accrued
accrued interest during interest during moratorium
moratorium

52 Under Global Ed-vantage Loan, ___ as Contingent Expenses can be included

which can be disbursed by obtaining a simple declaration.

a) 10% b) 5%

c) 25% d) Contingent Expenses are not

permitted

53 Courses run by which of these Institutions are eligible for loans under “SBI
Skill Loan” scheme

a) Industrial Training Institutes b) Polytechnics

(ITIs)

c) Training partners affiliated to d) All the above

National Skill Development
Corporation (NSDC)

54 Minimum and maximum finance available under “SBI Skill Loan” scheme is
_____.

a) Rs.5000 & Rs.100000 b) Rs.25000 & Rs.150000 respectively

respectively

c) Rs.10000 & Rs.100000 d) Rs.5000 & Rs.150000 respectively

respectively

55 Under 'SBI Skill Loan scheme' validation of course fee structure is required
to be done by the PBBU of the Circle concerned in case of Private
Institutions, for loan of ______

a) Rs.5000/- and above b) Rs.25000/- and above

c) Rs.50000/- and above d) Rs.100000/- and above

56 Which of these statements is not correct regarding “SBI Skill Loan” scheme?

a) Maximum repayment period is 7 b) No Collateral Security or Third-Party

years Guarantee is required

c) No margin is required to be d) Loans under this scheme can be

brought in by the applicants sanctioned by all the branches

824
57 Takeover of Collaterized Education Loans with outstanding _______ both for
Studies in India and abroad is permissible.

a) Rs. 10 lacs and above b) More than Rs.10 lacs

c) Rs. 7.50 lacs and above d) More than Rs.7.50 lacs

58 Which of these statements is not correct regarding Takeover of Education

Loans?

a) Only Collateralized Loans can be b) Loan should be fully disbursed

taken over

c) Perfection of securities to be d) All are correct

completed within 30 days from
the date of disbursement

59 Maximum loan amount under Secured Scholar loan for list AA institute

a) 40 lacs b) 30 lacs

c) 50 lacs d) No upper limit

60 In cases where the parent/ natural guardian/spouse/grandparent are not

alive, the Operating Units may consider a
__________ acceptable to the Bank as co-borrower to the loan account
a) Major sibling b) Relative

c) Third Party d) Any one of the above

61 What all can be included under margin

a) Scholarship b) teaching/research assistantship

c) Both A & B d) None of the above

62 Non-Mapped Branches of what incumbency can sanction scholar loan

a) Scale II and above b) Scale III and above

c) Scale IV and above d) Non mapped cannot sanction scholar

loan

825
 ANSWERS TO MCQs-Education Loans

1 B 2 B 3 C 4 A 5 D

6 A 7 C 8 D 9 C 10 B

11 A 12 C 13 C 14 A 15 B

16 D 17 A 18 C 19 B 20 D

21 D 22 B 23 A 24 A 25 D

26 D 27 C 28 A 29 C 30 B

31 A 32 D 33 B 34 B 35 B

36 C 37 D 38 D 39 B 40 A

41 D 42 B 43 D 44 D 45 C

46 C 47 B 48 A 49 A 50 B

51 C 52 B 53 D 54 D 55 C

56 D 57 B 58 D 59 D 60 D

61 C 62 B

826
 Agri Advances and Products

1 Under the Broiler plus scheme, the loan can be sanctioned to

a) New farmers b) Existing farmers

c) Both of above d) None of the above

2 A new entrepreneur wants to avail loan under Broiler plus scheme

a) He should have experience b) He should undergo training in

poultry

c) Both of the above d) Any one of the above

3 What is the minimum economic size of the flock under Broiler Plus

a) 500 birds b) 5000 birds

c) 1000 birds d) No such stipulation

4 What is the rearing period of the birds under Broiler plus

a) 5 weeks b) 6 weeks

c) 7 weeks d) 10 weeks

5 What is the maximum loan that can be sanctioned to a farmer under Broiler
plus

a) Rs 5 lacs b) Rs 7 lacs

c) Rs 9 lacs d) Rs 10 lacs

6 What is margin requirement under broiler plus

a) 10% b) 15%

c) 20% d) 25%

7 What is the DSCR requirement under broiler plus scheme

a) 1.25 b) 1.40

c) 1.50 d) 1.75

8 For which of the following the loan under broiler plus is sanctioned

a) Construction of poultry shed b) Feed room

c) equipment d) All of the above

Collateral security requirement under broiler plus

827
9 a) Mortgage of land on which the poultry b) Mortgage of land on which the
shed and other infrastructure are poultry shed and other
available or are proposed to be infrastructure are available or
constructed to cover at least 50% of are proposed to be constructed
to cover at least 100% of the
the value of the advance
value of the advance

c) Mortgage of SARFAESI compliant land d) None of the above

on which the poultry shed and other
infrastructure are available or are
proposed to be constructed to cover

at least 50% of the value of the advance

10 Repayment under broiler plus is

a) The entire loan is repaid along with b) The entire loan is repaid along
interest within 5 years inclusive of with interest within 5 years
grace period of 6 months exclusive of grace period of 6
months

c) The entire loan is repaid along with
interest within 5 years inclusive of
grace period of 6 months with
instalments at bi monthly intervals
d) The entire loan is repaid along
with interest within 5 years
exclusive of grace period of 6
months with installments at
monthly intervals

11 Which of the following important activities are covered under PMMY Allied
Agri

1) Dairy 2) Piggery 3) Agri clinic 4) Bee keeping

a) 2,4 are correct b) 3 is correct

c) 1,2,3 are correct d) All are correct

12 What is maximum loan ceiling under PMMY allied Agri

a) Rs 5 lacs b) Rs 10 lacs

c) Rs 25 lacs d) Rs 7.5 lacs

13 Select the incorrect statement under PMMY Allied Agri

a) Max loan Rs 10 las b) Margin upto Rs 50000/- is Nil

c) Inspection charges are waived d) Individual farmers are eligible

under the scheme

828
14 Repayment under PMMY Allied Agri

a) 3-5 yrs b) 1-5 years

c) 3-7 years d) 1-7 years

15 What is the min DSCR under the PMMY scheme

a) 1.25 b) 1.50

c) 1.75 d) 2.00

16 Who provides the credit guarantee cover for PMMY loans

a) CGFDU b) CGFMU

c) CGTMU d) CGTDU

17 Under the PMMY allied agri scheme, branches to ensure end use of funds by
verification of assets and collection of invoices within

a) 15 days b) 1 months

c) 3 months d) 4 months

18 Which is false statement in regard to PMMY loans

a) CIC reports are must b) Processed through LOS only

c) Credit scoring to be used d) Pre sanction is waived

19 An applicant has submitted all the required document s for processing of

loan under PMMY allied agri on 03/10.2018, maximum by which date the loan
should be sanctioned
a) 8/10/2018 b) 15/10/2018

c) 17/10/2018 d) 10/10/2018

20 In order to cover the seasonal fluctuations in cash flow, particularly in New

dairy product under tie up, which type of instalments are prescribed

a) EMI b) BMI

c) Negotiated repayment d) DMI

21 Which is largest producer of milk in the world

a) Denmark b) USA

c) India d) China

22 What is the tag line of AMUL

a) Best of India b) The taste of India

829
 c) AMUL doodh peeta hai India d) Asli milk

23 Which part of India has highest population of pigs

a) N E states b) Southern states

c) Western states d) North Indian states

24 Sunday ho ya Monday roj khao aande, is popular slogan of

a) NECC b) Central Poultry development

org

c) Ministry of Agri d) Venkateswara Poultry

25 Which committee recommended the concept of SHG

a) M S Gore b) R V Gupta

c) S K Kalia d) Kalyansunderam

26 What is maximum membership in SHG

a) 15 b) 20

c) 25 d) 10

27 How much amount is paid to local book writers engaged in maintain the
books

a) Rs 20 per SHG b) Rs 25 per shg

c) Rs 50 per shg d) Rs 100 per shg

28 KYC verification at the time of account opening of SHG account is

a) Verification of all members of SHG b) Only few members would

suffice

c) Only office bearers verification suffice d) No KYC is required for SHG

account

29 What is maximum credit limit sanctioned to SHG

a) Rs 25000/- per SHG member b) Rs 50000/- per SHG member

c) Rs 100000/- per SHG member d) Rs 75000/- per SHG member

30 Mainly SHG- bank linkage is of how many types

a) 2 b) 3

c) 4 d) 5

830
31 To be eligible for credit linkage the SHG should have been active existence
for

a) 3m b) 6m

c) 9m d) 12m

32 Choose the false statement

a) The SHG is maintaining proper b) Should have preferably

records homogeneous group

c) SHG should have good track record in d) SHG members can have
their functioning multiple membership in two or
more SHG

33 What is group Corpus,

1) balance in savings bank account of SHG

2) Amount utilized in internal lending

3) Cash balance with SHG

a) 1+2-3 b) 2+3-1

c) 1+3-2 d) 1+2+3

34 While apprising SHG loans, what are margin and security guidelines

a) Margin 5%, No security b) No margin and No security

c) Margin Nil Security 50% d) None of the above

35 SHG loan amount is disbursed fully in

a) Cash only b) By credit to NGO account

c) By issuing BC favouring SHG d) By transfer to

individual accounts of
members

36 What is the incentive amount paid to NGOs

a) Rs 500 /- per SHG b) Rs 700 /- per SHG

c) Rs 750 /- per SHG d) Rs 1000 /- per SHG

37 What is DAY-NRLM

a) Deendayal Antyodaya Yojana- b) Deenbandhu Antyodaya

National rural livelihood mission Yojana- National rural
livelihood mission

831
 c) Deendayal Antyodaya Yojana- d) Deendayal Antyodaya Yojana-
National rural livelihood module National rural learning mission

38 DAY NRLM replaced the scheme wef 01.04.2013

a) SGSY b) SGSRY

c) PMRY d) NEGP

39 Which among the following micro-finance models has a concept of member,

group, and center

a) SHG model b) Grameen model

c) JLG model d) NGO model

40 If more than 20% of the members can read and write, how will you rate the
SHG

a) Very good b) Good

c) Satisfactory d) Bad

41 DAY-NRLM provide Revolving fund support to SHGs in existence for a

minimum period of

a) 3/6 months b) 6/9 months

c) 12 month d) 9/12 months

42 Which subsidy is discontinued under DAY-NRLM

a) RBI SUBSIDY b) NABARD SUBSIDY

c) CAPITAL SUBSIDY d) REVOLVING SUBSIDY

43 How many districts are identified under DAY-NRLM

a) 150 b) 200

c) 250 d) 300

44 What is the eligibility criteria for credit linkage of women SHG under NRLM

a) Min score of 71 b) Min score of 70

c) Min score of 75 d) Min score of 76

45 The existing defunct SHG are also eligible for credit if they are revived and
continue to be active for min period of
a) 3 months b) 4 months

c) 6m d) 12 m

832
46 Under DAY- NRLM loan amount for first dose is

a) 6 times of corpus or Rs. 1 lakh b) 6 times of corpus or Rs. 1

whichever is higher lakh whichever is lower

c) 12 times of corpus or Rs. 1 lakh d) 12 times of corpus or Rs. 1

whichever is higher lakh whichever is lower

47 The loan to SHGs can sanctioned as

a) Term Loan b) Cash Credit

c) Over draft d) Either TL or CC

48 What is maximum amount of loan that can be santioned to SHGs without

collateral

a) Rs 7.5 lacs b) Rs 10 lacs

c) Rs 20 lacs d) Rs 15 lacs

49 Who prepares Potential linked plans

a) LDM b) RBO

c) NABARD d) SLBC

50 The second dose of loan is repaid in

a) 18-24 m b) 12 - 24 m

c) 12 -18 m d) 6 –12 m

51 Individual BC provides a security deposit of Rs

a) 25000/- b) 40000/-

c) 50000/- d) 100000/-

52 What should be the minimum qualification of Customer service provider

a) 8th pass b) 10th pass

c) 12th pass d) Graduate

53 Who will do the due diligence while appointing the CSP

a) Link Branch b) RBO

c) LHO d) National BC

54 Which among the following is not the role and responsibility of Business
Correspondent

833
 a) Wear standard blue uniform provided b) Undergo training and
by the bank certification

c) Adhere to fair codes for lending d) Not to provide any other

banking financial services
other than bank’s

55 Who will ensure that due diligence is done on the CSP and also obtain Police
verification before appointment

a) Corporate Centre b) LHO

c) Link Branch d) Business Correspondent

56 Books maintained by the BC, Select the incorrect one

a) Customer Contact Register b) Customer Call Register

c) Daily Transaction Register d) Complaint Register

57 What are the business handled by the CSP

1)Opening SB accounts 2)Deposit in loan accounts

3)Providing mini statement

4)Sale of micro/insurance/mutual fund/pension products decided by bank

a) 1,2 are correct b) 1,2,3 are correct

c) 1,2,3,4 are correct d) 1,2,4 are correct

58 What are the business handled by the CSP

1)Seeding Aadhar Number

2)Deposit in loan accounts

3)Tatkal remittance under IMPS

4)Distribution of Coins and Bank notes

a) Only 1 & 4 b) Only 2 &3

c) All of 1,2,3,4 d) Only 1,2,3

59 Timings of CSP to provide financial services to customers on behalf of bank

a) 10 am to 8 pm b) 8am to 8 pm

c) 10 am to 5 pm d) 8 am to 6 pm

834
60 CSP should display the following boards at the kiosks, select false
statement

a) Instructions regarding Rupay cards b) Products and services

avaialable

c) Training certificate d) Fair Banking codes (BCSBI)

61 The following books to be maintained at Kiosk, select the incorrect one

a) Visiting officials register b) Transaction register

c) Suggestions cum complaint register d) Pass book issued register

62 Who appoints the National BC

a) IBA b) Corporate Centre, SBI

c) RBI d) NABARD

63 Who will provides the policy guidelines, operational instructions, and

overseas the functioning of FI initiatives at the Bank

a) ABU dept at CC b) FI & Micro finance dept at CC

c) Outreach dept at CC d) FI & GC at GITC

64 The FI initiatives are implemented through technology called

a) Kiosk application b) CSP application

c) BC application d) FI application

65 The department of ABU is headed by at CC

a) DMD b) CGM

c) GM d) MD

66 The department head ABU at CC reports to

a) CHAIRMAN b) DMD (COO)

c) MD(R&DB) d) DMD (CCO)

67 ABU & GSS dept at LHO is headed by

a) DGM b) GM

c) AGM d) CM

68 All the national BC and circle BC submit their CSP credentials to

a) CC b) RBI

835
 c) IBA d) LHO

69 Who will ensure CSPs are active and business targets are achieved

a) Link branch b) RBO

c) Admin Office d) LHO

70 Who will monitor the performance of the BCs

a) Link Br b) LHO

c) RBO d) CC

71 Who’s responsibility is to ensure achieving the targets set in FI plan

a) BM of Link Br b) CM CS at RBO

c) CM (RB&FI) d) CM (C&R) at RBO

72 Who’s responsibility to ensure increase in Financial literacy in the region

a) CM(RB&FI) b) CM(CS&CM)

c) CM AT NODAL BR d) CM (C&R)

73 In small accounts what is cap on maximum balance

a) Rs 200000/- b) Rs 100000/-

c) Rs 50000/- d) Rs 20000/-

74 Basic Savings Bank Deposit accounts are, choose the incorrect one

a) Full KYC compliant accounts b) No upper limit on maximum

balance

c) Basic ATM cum Debit card is issued d) Enabled at specific branches

75 What is the accident insurance cover for PMSBY

a) Rs 100000/- b) Rs 200000/-

c) Rs 400000/- d) Rs 500000/-

76 How the progress in FI is measured

a) NSDL INDEX b) CRISIL Inclusix Index

c) RBI index d) Literacy Index

77 Which among the following is a statutory body for ensuring Financial Stability
& Financial development in India

a) NSFE b) FSDC

836
 c) PMDY d) FILC

78 The Aadhar enabled payment system is an interoperable payment platform

offered by

a) IMPS b) NACH
c) NPCI d) IBA

79 The age of subscriber for Atal pension Yojana should be between

a) 21-40 b) 18-50

c) 21-50 d) 18-40

80 What is minimum deposit under Sukanya Samrudhi Yojana

a) Rs 100 b) Rs 1000/-

c) Rs 250/- d) Rs 500/-

81 Kisan Credit Card has emerged as an innovative credit delivery mechanism to

meet the production credit requirements. A farmer approaches for sanction
of sprayer, while sanctioning his KCC limit. Can we accede to his request?

a) No, as limit sanctioned for sprayer b) As sprayer is also required for

comes under investment credit
production of crops the
request should be considered

c) Investment credit requirement for d)

Agriculture and allied activities
None of these
repayable within a period of one year
form a part of KCC limit.

82 KCC limit can be sanctioned to

a) Farmers who own Agricultural land b) Agricultural land taken by

farmers on on lease to grow
crops

c) land cultivated as tenants / share d) All of the above

croppers

83 Which proposals under KCC are considered as ‘good’

a) Proposals of credit score of 50 and b) Proposals of credit score of

above 60 and above

837
 c) Proposals of credit score of 70 and d) Proposals of credit score of 71
and
above
above

84 What are RBI guidelines with regard to obtaining ‘No Dues’ certificate from
individual farmers while sanctioning KCC loan

a) Dispensed with obtention for loans upto b) Dispensed with obtention for
Rs: 25,000/- loans upto Rs: 50,000/-

c) To be obtained only for loans of above d) Dispensed with obtention of

Rs: 50,000/- ‘No Dues’ irrespective of the
amount involved in rural and
Semi-urban
areas

85 KCC will be sanctioned as a

a) Demand Loan b) Term Loan

c) revolving cash credit account d) None of these

86 What are the minimum and maximum ceilings for sanction of KCC?

a) No minimum or maximum limit (Need b) Minimum of Rs:

based finance) 10,000/- Maximum of
Rs: 3,00,000/-

c) Minimum of Rs: 10,000/- No d) Minimum of Rs:

Maximum limit 10,000/- Maximum of
Rs: 5,00,000/-

87 Margin to be maintained while sanctioning KCC limit

a) 15% b) No margin is required

c) 25% d) 15% to 25% on a case to

case basis

88 KCC is sanctioned for a period of

a) One year b) One crop season

c) 5 years with review on an yearly d) 3 years with review on an

basis yearly basis

89 The SOF is the crop-wise estimate about cost of cultivation and loan
requirement are worked out and prescribed by

838
 a) SLBC b) DLTC

c) DCC d) SLTC

90 In KCC the limit will be stepped by % each year and the limit for 5th year
will be % of first year limit.
a) 10…150 b) 10….125
c) 5…150 d) 15…150

91 Composite limit (flexi KCC limit) of Rs: _ to Rs: _ for

marginal farmers may be sanctioned, based on land holdings
a) 5,000/- , 10,000/- b) 10,000/- , 25000/-
c) Upto Rs: 5,000/- d) 10,000/- , 50,000/-

92 Interest subvention of % will be provided by Government of India

a) 2% b) 3%
c) 4% d) None of these

93 Interest Subvention is provided by Government of India for loans

a) Upto Rs: 3.00 Lakhs per season per b) Upto Rs: 3.00 Lakhs per year
farmer per farmer

c) Of any amount of per season per farmer d) None of these

94 In case of non-payment within the repayment due dates, interest will be applied
at

a) card rate, compounded at monthly rests b) card rate, compounded

at quarterly rests

c) card rate, compounded at half d) card rate, compounded at

yearly
yearly rests
intervals

95 Processing charges for KCC to be collected

a) On Maximum Drawing Limit b) On Maximum Permissible

Limit

c) Rs 1000/- irrespective of loan d) No processing Charges

amount sanctioned to be collected
for KCC

96 Collateral security is waived for KCC limit up to Rs. lacs for loans with tie-
up arrangement

a) 5 b) 3

839
 c) 2 d) 1.5

97 Credit balance in the account will be eligible for interest at _ rate.

a) Savings Bank b) Bank

c) Short Term Deposit d) No interest will be paid

98 Short duration crops are those crops raised

a) Upto 9 months b) Upto 3 months

c) Upto six months d) Upto 12 months

99 A Joint Liability Group (JLG) is an informal group of individuals

a) 5-10 b) 4-10

c) 10-20 d) 15-25

100 The loan for a JLG can be granted

a) Only on individual basis b) Only on group mechanism
c) Individually or for a group d) None of these

101 TAT for processing the KCC

a) 1 day b) 2 days
c) 10 days d) 3 days

102 In Multi Purpose Agri Gold Loan aggregate limit of the gold loans to a single
borrower/
CIF should be restricted to ____
a) 25 lacs b) 20 lacs
c) 50 lacs d) 15 lacs

103 Maximum number of agri gold loan in a single CIF is restricted to____
a) 3 b) 10
c) 5 d) 2

104 Minimum amount of Rs._________ per month per lakh of loan limit should be
recovered to maintain connectivity with the borrower
a) 2000/- b) 500/-
c) 1000/- d) 1500/-

105 TAT for processing the Tatkal Tractor Loan Scheme

a) 1 day b) 2 days
c) 10 days d) 3 days

840
106 Minimum DSCR required for financing Power Tiller
a) 1.75:1 b) 1.5:1
c) 1.25:1 d) 2:1

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

A c c b c c d b d a c

Q 11 12 13 14 15 16 17 18 19 20

A d b c a c b b d c d

Q 21 22 23 24 25 26 27 28 29 30

A c b a a c b b c b b

Q 31 32 33 34 35 36 37 38 39 40

A b d d b a c a a b a

Q 41 42 43 44 45 46 47 48 49 50

A a c c b a a d c c a

Q 51 52 53 54 55 56 57 58 59 60

A c c a a d b c c b d

Q 61 62 63 64 65 66 67 68 69 70

A d b b a b c a d d c

Q 71 72 73 74 75 76 77 78 79 80

A c b c d b b a c d C

Q 81 82 83 84 85 86 87 88 89 90

A c d d d c a b c b a

Q 91 92 93 94 95 96 97 98 99 100

A d a a c a b a d b C

Q 101 102 103 104 105 106

A d A C C B A

841
 SME Advances and Products

1 What is the minimum and maximum amount of loan in case of SBI Fleet
finance scheme
a) Rs. 10 lacs and Rs. 10 crores b) Rs.50 lacs and Rs. 10 Crores

c) Rs. 10 lacs and Rs. 2 Crores d) Rs. 50 lacs and Rs. 2 crores

2 Civil Suit is to be filed immediately on approval but in any case, within a

maximum period of ………months from the date of approval

a) 3 months b) 6 months

c) 9 months d) Immediately

3 What is the full form DSRA

a) Debt Service Revalue account b) Debt Service Reserve Account

c) Debt Service Reset account d) Debt Service Review Account

4 Which of these products discontinued?

a) Cotton Ginning Plus b) SME Credit plus

c) Construction Equipment Loan d) All of the above

5 What is the maximum loan limit under SME SMART Score scheme

a) 50 lakhs b) 25 lakhs

c) 100 lakhs d) 500 lakhs

6 What is the name of the Pricing Tool introduced by the bank for exposure of
Rs50crs and above Corporate Advances?

a) RIPAK b) DIPAK

c) Card Rating d) EBLR

7 What is the validity period of External credit rating obtained by the

Borrowers?
a) 12 months from the date of rating b) 15 months from the date of rating

c) 18 months from the date of rating d) 24 months from the date of rating

8 Who should approve the waiver of obtention of External Credit rating to

borrowing units?

a) DMD of the vertical b) Sanctioning authority

c) CGM of the Circle d) ECCB

842
9 Which of these products discontinued?
a) Ceramic Cluster Package b) SME E Biz Loan

c) Both a and b d) None of the above

10 What are the different methods available for initiation of transactions in e- DFS
a) Pull Method b) Push Method

c) Both a and b d) None of these

11 What is the nodal agency for implementing PMEGP Scheme at National level

a) NABARD b) RBI

c) SIDBI d) KVIC

12 Which of the undernoted statements is true with respect to a proprietorship

concern?

a) As far as legal status is b) It is not necessary to obtain

concerned both the personal guarantee of the
proprietorship firm and proprietor as proprietor and his
proprietor in individual entire personal assets is liable for
capacity are considered as any debt towards proprietorship
same firm.

c) Both 1 & 2 are correct d) Only 1 is correct

13 For accounting purposes, why a proprietorship firm is required to

prepare a Balance Sheet?
a) There is no need for a proprietorship b) A proprietorship firm should prepare
firm to prepare a balance sheet the balance sheet and profit and
loss account of the firm separately
to know the strength and viability of
the business run by the firm.

c) Only Profit & Loss account is required d) Proprietor's detailed statement on

to be prepared by a Proprietorship assets and liabilities is sufficient to
firm. access the status of the firm for the
lender.

14 What should be verified through the Articles of Association of a Company?

a) The total borrowing of the Company b) The purpose of the loan is within
is within the authorized borrowing the scope of the object of the
limit. Company

c) Both 1 & 2 are correct d) Only 1 is correct

843
15 As per Companies Act 2013, what is correct for a Private Limited Company?
a) It must have a minimum of 2 b) It must have a minimum paid up
members and a maximum of 200 capital of Rs.2 lacs, a minimum of
members 2 members and a maximum of 100
members

c) It must have a minimum paid up d) It must have a minimum paid up

capital of Rs.1 lakh, a minimum of 2 capital of Rs.5 lacs, a minimum of
members and a maximum of 50 2 members and a maximum of
members 200 members.

16 How does the Companies Act 2013 define an Associate Company?

a) The new Act defines an Associate b) The new Act defines an Associate
Company (say, A) of another Company (say, A) of another
Company (say, B) where B exercises Company (say, B) where B
significant control over A (by exercises significant control over
controlling at least 25% of the total A (by controlling at least 20% of
share capital of A, or of the business the total share capital of A, or of
decisions under an agreement). the business decisions under an
agreement).
c) The new Act defines an Associate d) The new Act defines an Associate
Company (say, A) of another Company (say, A) of another
Company (say, B) where B exercises Company (say, B) where A
significant control over A (by exercises significant control over B
controlling at least 15% of the total (by controlling at least 37.5% of the
share capital of A, or of the business total share capital of B, or of the
decisions under an agreement). business decisions under an
agreement).

17 In respect to a standalone Term Loans, the period of limitation is triggered

from:

a) The date of execution of agreement. b) 3 years from Default in the

payment of any of the instalments
or from the date of
acknowledgement of debt/ liability
in writing by the borrowers and the
guarantors or his/her authorized
agents.

c) Within 3 years from the date of d) Revival letter not to be obtained in

execution of agreement respect of a Term Loan.

18 If A Ltd has equity capital of Rs. 4 cr out of which B Ltd. holds shareholding
of Rs. 3 cr, what is the relationship between Company B & Company A?

a) B Ltd is the Holding Company b) A Ltd is the Holding Company of B

of A Ltd Ltd.

844
 c) B Ltd & A Ltd are into the same line d) No relationship between these
of activity. Companies

19 In case of variation of ______________ or more in the valuation proposed

by the valuer and the guideline value provided in the State Government
notification, justification on variation has to be given by the Valuer.
a) 10% b) 20%

c) 5% d) 15%

20 At the time of putting up fixation of reserve price for sale of property under
SARFAESI Act, the valuation report should be:

a) Less than 6 months old. b) Less than three years old

c) Less than one year old d) Less than two years old

21 In a credit facility being proposed for a Partnership firm, a property is offered

as a mortgage by Mr. A, one of the partners, which was acquired by him
through a Gift Deed. The proposed loan amount is Rs. 80.00 lacs. Which of
the undernoted statement is correct?
a) One TIR needs to be obtained as the b) Such a property should not be
loan amount is less than Rs. 1.00 accepted as mortgage
crore.

c) The value of property should be more d) Two TIRs need to be obtained in

than the loan amount proposed the instant case

22 A title deed is deposited by the mortgagor on 15.02.2018. What may be

the date of letter of confirmation taken as part of EM?
a) 15.02.2018 b) 17.02.2018

c) 16.02.2018 d) Either 2 or 3

23 What is the minimum and maximum loan amount in SBI Open Term Loan?

a) Rs. 10 lacs and Rs. 50 Crores b) Rs. 25 lacs and Rs. 10 Crores

c) Rs. 10 lacs and Rs. 25 Crores d) No Minimum and maximum ceiling

24 The Bank’s Loan Policy deals with the Bank’s approach to monitoring

a) Operational Risk b) Market Risk

c) Liquidity Risk d) Credit Risk

25 RBI has clarified the term “Exposure” for the purpose of Prudential
exposure norms include
a) All credit exposures not Investments b) Credit and Investments

845
 c) All fund-based credit limits only d) All fund-based and Non-Fund based
credit limits only

26 Validity of Open Term Loan is

a) 3 months b) 6 months

c) 1 month d) 12 months

27 As per Bank’s Loan Policy, no Bank Guarantee should normally have a

maturity of more than
a) 10 years b) 5 years

c) 15 years d) 12 years

28 ECR is not mandatory for exposures of less than Rs. _________

a) 10.00 crores b) 25.00 crores

c) 7.50 crores d) 50.00 crores

29 As per takeover norms, for exposures from Rs. 50.00 crores and above, where
ECR is available, CRA should be ______ or better

a) SB-5 b) SB-9

c) SB-8 d) SB-7

30 Which product is restored with some modifications by SMEBU, to address

the liquidity issues of SMEs units being faced due to GST implementation?

a) SME ASSIST b) SME CARE

c) SME HELP d) SME SMART

31 Maximum repayment available under Asset Back Loan scheme (ABL)

is
a) 10 Yrs b) 20 Yrs

c) 5 Yrs d) 8 Yrs

32 Perfection of securities must be completed within _____ days of

disbursement in case of Takeover of Accounts.

a) 60 b) 30

846
 c) 45 d) 90

33 What percentage of invoices are financed under e-DFS?

a) 90 % b) 80 %

c) 100 % d) 75 %

34 Maximum ceiling prescribed by the Bank for Individuals as borrowers is-

--?
a) Rs. 25.00 crores b) Rs. 50.00 crores

c) Rs. 100.00 crores d) Rs. 10 crores

35 Non-Fund Based facilities should not exceed ______ % of Bank’s total fund
based exposure

a) 150% b) 200%

c) 100% d) 50%

36 Term loans sanctioned and not availed within a period of _________ from the
date of sanction need revalidation.

a) 3 months b) 9 months

c) 6 months d) 2 months

37 The undernoted measure/(s) may be taken as a step towards controlling NPA

Accretion
a) Tightening of post sanction credit b) Dynamic Review of Internal Rating
process

c) Introduction of a system that will d) All of the above

provide Early Warning Signals

38 Whether we can permit waiver in the prescribed Loan Policy norms

a) Yes, Sanctioning committee can give b) No

c) Yes, based on sound commercial d) There is authority structure

considerations that are agreed after
careful evaluation of individual
cases
covering delegation of power to
permit such waivers, they can give
waiver without considering
commercial considerations &
careful evaluation of individual
cases

847
39 Stressed Assets Resolution Group (SARG) focuses on which type of
accounts
a) NPA Accounts b) SMA Accounts

c) Non-Performing Assets, and assets d) Non-Performing Assets, and

under stress (including SMA-2) assets under stress (including
SMA)

40 Under Financial Due Diligence we have to verify following documents

a) The financials of the main company b) The financials of the main
and its major associate / sister company only should be reviewed
concerns should be reviewed, as far
as possible, on the basis of
provisional financials of the concerns
on a common date

c) Verification of statutory return will not d) The financials of the main company
be covered and its major associate / sister
concerns. Verification of Income
Tax, Sales Tax, Excise Returns,
and GST return etc. must also be
ensured

41 ABL-CRECP is available in which facility?

a) Dropline OD b) CC

c) TL d) WCTL

42 Opinion Reports on Borrowers and Guarantors should be updated at

________ interval

a) Every 2 years b) Annually

c) Every six months d) Once in three years

43 Specified Borrower under Enhancing credit supply for large borrowers

through market mechanism are defined by RBI As per guidelines, if any unit
is having aggregate Sanctioned Credit Limit (‘ASCL’) of more than________
it will be considered as Specified borrower"
a) Rs. 25,000 Crs at any time during FY b) Rs. 25,000 Crs at any time during
2017-18, Rs. 15,000 Crs at any time FY 2017-18
during FY 2018-19, Rs. 10,000 Crs at
any time from April 1, 2019 onwards

c) Rs. 15,000 Crs at any time during FY d) Rs. 10,000 Crs at any time from
2018-19 April 1, 2019 onwards

848
44 Credit Risk Assessment (CRA) to be reviewed at half yearly intervals for units
having CRA

a) SB-9& below b) SB-10& below

c) SB-11& below d) SB-15& below

45 Bank can resort to sale through private treaty when sale through e-auction
fails. The minimum number of attempts of sale through e-action before going
for sale through private treaty is
a) 2 attempts for above 1 cr of property b) 3 attempts for above 1 cr of
value and 1 attempt for up to 1cr of property value and 1 attempt for up
property value to 1cr of property value

c) 1 attempt for both above 1 cr and up d) No. It can’t sell through private
to 1 Cr of property values treaty

46 What is the cut off limit for classifying a borrower as non-Co-operative?

a) Rs.5 Cr & above Fund based limits b) Rs.5 cr & above fund based and
non-fund based limits

c) Rs 1 crore and above Fund based d) Rs.50 crs and above Fund based
limits limits

47 How many Credit Information reports is/are required for processing

unsecured secured loans limit of Rs.26 lacs?

a) 1 b) 3

c) 2 d) Not required

48 What is SME 12 under SME Documentation?

a) To be obtained during Ad-hoc b) SME 12 is a link letter and is to be

limit obtained on shifting from non-SME
documents to SME documentation.

c) To be obtained when Overdrawing d) None of the above

permitted

49 What is Unconditional Cancellability Clause in the documentation?

a) Cancellation of Drawing power b) Bank reserves the absolute right to

cancel limits( either fully or partially
) unconditionally without prior notice

c) Demand of outstanding limit d) No such clause

849
50 What is the purpose of 'Annexure F' in the process of accepting an immovable
property as a security towards a credit facility being sanctioned?

a) Checklist on scrutiny of TIR by the b) Checklist on identification and

branches physical verification of property

c) Report of Investigation of Title in d) Certificate of title to be submitted

respect of immovable property by the advocate

51 A proposal for sanction of various limits of ABC Put Ltd is being undertaken
by appraising Officer in May 2018.The unit will be involved in manufacturing
of napkin papers. The project is likely to start commercial operation by
31/12/2018.The CRA of the unit will be based on which of the following
Financial Statements?
a) Projected 31.03.2019 b) Projected 31.03.2020

c) Projected 31.03.2021 d) None of the above is correct

52 Which statement is true with respect to registration of an LLP (Limited

Liability Partnership)?

a) No registration is required for an LLP. b) Registration for an LLP is optional.

c) Every LLP must register itself with d) LLP to be registered under the
the Registrar of Companies. Indian Partnership Act.

53 In case of variation of ___% or more in the valuation proposed by the valuer

and the guideline value provided in the State Government notification,
justification on variation has to be given by the Valuer.

a) 10 b) 20

c) 5 d) 15

54 Subsequent to creation of EM, is a fresh TIR required after every three years?
a) Fresh TIR has to be obtained every b) In states / UTs where issuance of
three years. EC is not in vogue, fresh TIR has to
be obtained every three years

c) No requirement of obtaining fresh d) EC needs to be obtained every

TIR after creation of EM. three years.

55 If the sale deed of a property proposed to be mortgaged has been executed

by a POA holder, the undernoted precaution is required

850
 a) Registration of POA is mandatory b)
irrespective of Principal being a
resident or NRI.
It is advisable to obtain a written
communication / confirmation of
Principal to the effect that he / she
has granted the POA, and that it is
still in force.

c) Vetting from Law Department not d) No separate precaution required

required if loan amount is less than as TIR is taken from panel
Rs. 1 crore. advocate as per extant
instructions.

56 What are the guidelines for accepting a property, whose title deeds are in
vernacular language?

a) Title deeds in vernacular language b) Title deeds in vernacular language

not to be accepted under any may be accepted after vetting by
circumstances. Law Department.

c) It the title deeds are in vernacular d) 2 TIRs to be obtained if title

language, full particulars of the title document is in vernacular
deeds in English signed by the language
Bank's empaneled advocate should
be obtained and kept on record.

57 What type of security interests are required to be filed with CERSAI?

a) Only mortgages created by deposit of b) All types of mortgages created by
title deeds. the Banks.

c) Hypothecation charge on plant and d) Both b & c are correct

machinery, stocks, debt including
book debts

58 Which of the undernoted step /(s) should be taken to prevent mortgage of

forged and fake documents?

a) Direct the advocate to procure b) The identity of the borrower

certified copies of the title deeds and should be verified.
compare the certified copies with the
original documents.

c) Wherever possible the genuineness d) All of the above are correct.

of the documents, relating to the
property be got confirmed from the
concerned local offices/ authorities.

59 Preparation of Financial Statement is the responsibility of the management.

What are the responsibilities of the Independent / Statutory Auditors?

851
 a) To express an opinion on the b) Comments on the compliance of
financial statement the various Acts, Accounting
Standards etc.

c) Assurance for True and Fair d) All the above

representation of financial
statements

60 After receipt of Audited Financial Statements, the first action required to

be taken by the credit officers is?
a) Confirm about the genuineness of the b) Preparation of CMA
financial statements

c) CRA Rating is to be carried out d) Discuss the performance with the

unit

61 Whether Fund Flow Statement is part of Financial Statements?

a) No b) Yes

c) May be d) May not be

62 Capital mentioned in the Balance Sheet of a company needs to be verified with

________.

a) RBI b) Audited Financial Statement filed

with Registrar of Companies

c) GST Return d) None of the above

63 Why do CMA forms continue to be used in assessment?

a) Credit officers and relationship b) They are very useful in simplifying

managers are familiar with the forms the representation of financial
and find them easy to use. statements, clarifying their content
and providing a clear understanding
of the credit assessment’s purpose

c) Companies are familiar with the d) There have been no other forms
information which needs to be issued to be used by the RBI
entered in the forms and provide the
required data.

64 Debt Service Coverage Ratio (DSCR) should be used as one of the factors
while issuing which type of BG?

a) BID Bond b) EPCG

852
 c) DPG d) DSCR is not required for BG
assessment

65 Under SME Credit Card Scheme, Working capital Assessment for

Professional & Self Employed is made as -----
a) 20% of their annual turnover b) 25% of the annual turnover

c) 50% of their Gross Income as per IT d) 100% of their Gross Income as

Returns per IT Returns

66 A builder, who is constructing a Residential Project has approached for

sanction of working Capital Facility, which of the following methods will be
used for assessment of working capital limit?

a) Projected Balance sheet Method b) Projected Turnover Method

c) Cash Budget Method d) Builder Finance is not permissible

as per bank`s extant instructions

67 Relation between Owner of the property and power of agent?

a) Agent and Principal. b) Principal and Agent

c) Bailor and Bailee d) Lessor and lessee

68 The Current Ratio of a unit has declined from 1.65 to 1.35. What could be the
possible reasons for decline?

a) Investment in fixed assets b) Increase in Current Liabilities

without availing any Term
Loan
c) A major portion of trade receivables d) All of the above
converted into Non-current assets

69 Term loans are to be repaid out of future earnings of the unit. Working capital
loans are to be repaid out of ……………….?

a) Realization of fixed assets b) Profits

c) Realization of non-core assets d) Realization of current assets

70 A term loan account turned irregular on 31.12.2019 due to application of

interest. The borrower regularized the account on 15.01.2020. Whether
irregularity report is required to be submitted?

a) Yes, for January 2018 b) No irregularity reporting is

required.

853
 c) Yes, for December 2019 and d) None of the above
January 2020

71 A term loan is an advance for a longer period intended mainly for financing?
a) Acquisition of fixed assets b) Acquisition of fixed assets

c) Strengthening of NWC etc. d) All of the above

72 In a term loan proposal, if the proposal involves a new process or new

technology, a ….. Report by a competent outside agency is essential
a) Economic Viability b) Commercial Viability
c) Technical Feasibility d) Managerial competency

73 A customer walks in and seeks a term loan for putting a new textile mill in
that area. There are 50 such mills in that area & more than 60% of them are
sick, then?

a) Go ahead with the appraisal process. b) Adopt a cautious approach, seek

further information before taking a
final decision

c) Reject the proposal straightaway. d) All of the above

74 After commencement of commercial production in case of term loan which of

the following statement is required to be submitted?

a) FSMTL 1 b) FSMTL 2

c) FSMTL 3 d) None of these

75 You have sanctioned a term loan to a company for an expansion project. A

portion of the project cost amounting to Rs 10.00 crores is to be met by
internal accruals during the current year. The company has repayment
obligation of Rs 4 crores towards existing term loans during the year. The
internal accruals up to the first half of the year are Rs 3.00 crores. Which of
the following statements is the most appropriate for this situation?
a) While there is a possibility of shortfall, b) The availability of funds for project
it is too early to think of any action. implementation does not face any
Actual amount of internal accruals constraints
would be known only after year end

c) The overall requirement of funds from d) Difficult to say anything at this stage
internal accruals is Rs 14.00 crores
for the current year. Going by the
internal accruals up to the first half of
854
 the year, there is a likelihood of
shortfall and alternative means of
financing need to be identified.

76 When a regular Bank guarantee limit is sanctioned, which of the following

documents is required to be obtained?

a) Omnibus Counter Guarantee b) SME 5

c) Counter Guarantee d) None of the above is required to be

obtained

77 Bank Guarantees in respect of raw material supply favoring NSIC on behalf

of SME customers is categorized as?

a) Performance Bank Guarantee b) Financial Bank Guarantee

c) Differed payment Guarantee d) None of the above is correct

78 Stock Audit report of a Borrowing unit mentions that the inventory level
shown in the stock statement has been substantially higher than the actual
level found in the audit. You have observed that the drawing power works out
to be substantially lower and the account would be rendered irregular. What
is the most appropriate action need to be taken by you?

a) Wait for the next stock statement and b)
ask the auditor to verify the position
with reference to the new stock
statement
Examine the matter closely. Have a
detailed discussion with the
borrower and the auditor. Analyze
the borrower’s explanations and
assess if those are justified. Finally,
take action as appropriate.

c) Immediately reduce the drawing d) Do nothing because reduction in

power as indicated in the stock audit drawing power would lead to
report irregularity in the account which
may ultimately lead to the account
becoming NPA

79 Net Working Capital (NWC) can be calculated as?

a) Long Term Sources - Long Term b) Total Current Assets - Total Current
uses Liabilities

c) (Net worth +Term Liabilities)- (total d) Any of the above

Assets- Current Assets)

855
80 Semi-finished goods should be valued at?

a) Cost of purchase b) Cost of production

c) Cost of production or selling price or d) Cost of goods sold

market price or Govt. controlled
rates, whichever is the lowest

81 The objectives of irregularity reporting are

a) To keep the concerned authority b) To seek confirmation of irregularity

informed of the position of irregular from appropriate authority
accounts

c) To put forth/ evolve plan of action for d) All the above

regularizing irregularity in the
account

82 What is the periodicity for reporting of irregularity in NPA accounts?

a) First reporting by 10th of subsequent b) Yearly reporting to Sanctioning

month after NPA classification Authority for information.

c) Both 1 & 2 d) None of the above

83 An account turned NPA as on 31.03.2015. The present outstanding in the

account as on 31.03.2018 is Rs.60 lacs. The available security value as on
31.03.2018 is Rs.35 lacs. What will be the provision amount as on 31.03.2018
as per IRAC norms?
a) 25 b) 39

c) 60 d) 6

84 What is the inventory holding period in months for a unit with sales of Rs.
49.60 lakh, inventory of Rs. 6.50 lakh, cost of goods sold Rs. 39.00 lakh and
trade receivables of Rs. 12.40 lakh?

a) 1 month b) 1.57 months

c) 3 months d) 2 months

85 Under the provisions of SARFAESI Act, borrower's Right to Redeem back the
charged properties, after payment of bank's entire dues, is available up to
which stage of SARFAESI action?

a) Borrower may redeem the charged b)
properties at any stage of SARFAESI
Action after payment of bank's entire
dues.
Borrower may redeem the charged
properties only before bank's
action under Section 13(4) of
SARFAESI after payment of bank's
entire dues

856
 c) Borrower's right to redeem the d) Borrower cannot redeem the
charged properties after payment of charged properties from the Bank
entire dues is limited to publication of after initiation of SARFAESI Action
Sale Notice by the Bank.

86 A working capital limit of Rs. 25.00 lacs was sanctioned to a unit in May 2014,
which slipped into NPA on 30.04.2017. The documents are valid up to
24.05.2017. Which of the undernoted statement is true in this case?

a) Notice under Section 13(2) of b) If the notice under Section 13(2) is

SARFAESI Act may be issued before issued on 05.05.2017, limitation
24.05.2017. period shall be automatically
extended by 60 days from date of
notice.

c) Suit for recovery of bank's dues d) Both a & c are correct.

should be filed immediately, but in
any case, before 24.05.2017.

87 In respect of filing of suit before Debt Recovery Tribunal for recovery of

Bank’s dues, which of the undernoted statements are true?

i. Call up notice to be served on borrowers/ guarantors through Bank’s

advocate demanding payment of Banks dues within 30 days of notice.

ii. The suit application to be filed needs to be vetted by Bank’s Law Officer.

iii.Loan outstanding may not be necessarily transferred to recalled assets

account.

iv. In case Bank/ Borrower or any other party is aggrieved by the final decree
given by DRT, appeal may be filed in DRAT (Debt Recovery Appellate
Tribunal) within 30 days from the date of receipt of order of DRT.

a) (ii), (iii) & (iv) are correct b) (i) & (ii) are correct

c) (i), (ii) & (iv) are correct d) All are correct.

88 What do we mean by the term 'Attachment before Judgment'?

a) The uncharged assets cannot be b) The name of the legal heirs must
attached by the court for recovery of be impleaded in the court case
bank's dues after death of the guarantor.

c) The charged assets may be d) The uncharged assets may be

attached by the court for recovery of attached by the court for recovery of
bank's dues bank's dues subject to the condition
that charged assets are insufficient
to cover the entire amount due to
the Bank.

857
89 Identification of accounts for exit is done by:

a) Circle Credit Officer b) DGM [Business] or Deputy General

Manager [SME] as the case may be.

c) Relationship Manager /Officer d) External Screening Committee

maintaining the accounts.

90 Exit Budget will be finalized based on ………. approach

a) Bottoms Up b) Pyramid
c) Horizontal d) Distributive

91 Action under Section 13(4) can be initiated after giving notice under Section
13(2) of SARFAESI Act. Which of the undernoted statement is true in this
regard?

a) Action under Section 13(4) can be b) If any one of the notices under
initiated after 60 days of issuance of Section 13(2) is returned
notice under Section13 (2). undelivered, action under Section
13(4) can be initiated after 60 days
of publication of contents of demand
notice in two newspapers.

c) Subject to account remaining within d) All 1, 2 & 3 are correct.

limitation period there is no outer limit
for initiation of action under Sec 13(4)
after issuance of notice u/s 13(2).

92 Before taking possession under Section 13(4) of SARFAESI Act, is it

mandatory to file an application before the DM under Section 14?

a) Yes. It is mandatory. b) Application before DM required

only if the Authorized Officer
foresees a resistance in taking
over physical possession
c) No. it is not mandatory. d) Both 2 & 3 are correct.

93 Can the demand notice under Section 13(2) of SARFAESI Act be served
through Hand Delivery?
a) Yes, it may be served through hand b) No, hand delivery is not permitted
delivery.

c) It is for the Authorized Officer to take d) A view may be taken by the

a view. Controller of the branch.

858
94 It has been observed by the Field Officer that Stocks of a particular unit
having CRA of SB-8, enjoying limit of Rs 5 Crores are stored in multiple
Godowns located in different places, then what should be the course of
action.

a) Inspection of all the Godowns should b) Inspection of the all the Godowns
be conducted simultaneously or on should be completed in phase
the same day. wise during the period of a month.

c) Since Inspection is not possible, d) As per the guidelines Stock Audit

waiver should be obtained from SA should be carried out annually of
such unit.

95 What is the relevance of stock statement in the administration of FBWC

limits?

a) Stock statement contains information b) Based on a scrutiny of stock

which is “good to have” for the bank, statement does a bank decide
whether to renew a FBWC limit
though not “must have”

c) Submission of stock statement is a d) Stock statement contains details

statutory requirement for availing
FBWC limits
of inventory, receivables and
creditors under LCs which are
necessary to compute the
drawing power which regulates
the amount that can be drawn
from the FBWC account

96 Standalone regular term loan should be reviewed?

a) Annually b) Half yearly
c) Once in 3 years d) No review required

97 A regular raw material supplier to TATA Motors approaches for credit

facilities against TATA Motors receivables. Which scheme will be best suited
to the applicant?

a) ABL b) e-VFS

c) e-DFS d) m-DFS

98 Internal Rate of Return is---?

a) Highest return for the project b) Maximum possible return on a term

loan
c) Rate of interest at which then highest d) Rate of interest at which then
return on the project is feasible highest return on the project is
feasible

859
99 The following is not true in respect of a term loan?

a) Stipulated D/E ratio needs to be b) The term loan, after sanction, can
maintained throughout the be utilized for any purpose which the
implementation period borrower deems fit

c) Normally, the tenure of the loan d) The term loan can also be released
should not exceed ten years on reimbursement basis

100 Terminal value of the project is ---?

a) Closing inventory held at the time of b) Market value of assets at the time
liquidation of liquidation of the company

c) Residual or salvage value of the d) WDV of Fixed assets when the

assets at the end of the estimated project is terminated
life of the project

Keys

1 B 21 D 41 A 61 A 81 D

2 A 22 D 42 B 62 B 82 C

3 B 23 B 43 A 63 B 83 B

4 D 24 D 44 C 64 D 84 D

5 A 25 B 45 A 65 C 85 C

6 B 26 D 46 B 66 C 86 D

7 B 27 A 47 C 67 B 87 B

860
8 B 28 D 48 B 68 D 88 D

9 C 29 D 49 B 69 D 89 C

10 C 30 A 50 B 70 C 90 A

11 D 31 B 51 B 71 D 91 D

12 C 32 D 52 C 72 C 92 B

13 B 33 C 53 B 73 B 93 A

14 A 34 C 54 B 74 C 94 A

15 A 35 C 55 B 75 C 95 D

16 B 36 C 56 C 76 A 96 A

17 B 37 D 57 D 77 B 97 B

18 A 38 C 58 D 78 B 98 C

19 B 39 C 59 D 79 D 99 B

20 C 40 D 60 A 80 C 100 C

861
 SME – Others

1 CGTMSE stands for

a) Credit Guarantee Trust for b) Credit Guarantee Trust for

Medium and Small Enterprises
Manufacturing & service Enterprises

c) Credit Guarantee Trust for Micro d) Credit Guarantee Fund Trust

and Small Enterprises for Micro and Small Enterprises

2 The extent of Guarantee cover under CGTMSE for retail loans is …..

a) 0% b) 50%

c) 75% d) 85%

3 CGTMSE set up by

a) NABARD b) SIDBI

c) RBI d) SIDBI &Govt. of India

4 What is the maximum loan amount that can be covered under CGTMSE
sanctioned to Retail Traders?

a) Not to be covered b) Rs. 50 lacs

c) Rs. 200 lacs d) Rs. 100 lacs

5 CERSAI has been established by the Central Government under

___________Section and under Section 25 of the Companies Act,

a) Sec 20(1) of SARFAESI Act b) Sec 20(1) CERSAI Act 2002

2002

c) Sec 20(1) Central Registry Act d) Sec 20(1) SARFAESI Act 2000
2002

6 CERSAI has been established by the Central Government under Section 20(1) of
the SARFAESI Act 2002 and under Section 25 of the Companies Act of the
Companies Act, for the purpose of registration of all security interest over
property, transactions of Securitisation and asset reconstruction, registration in
CERSAI site to be done with in ____ days

a) 60 days b) 90 days

c) 360 days d) immediately

862
7 The filing with CERSAI is to be done individually, for each mortgage created in the
Bank. The responsibility for doing so rests with the ------------

a) Credit Processing Cells b) RBO

c) Branch d) a&c

8 SME-1 is

a) Letter of Arrangement b) Agreement of Loan Cum

Hypothecation

c) Guarantee Agreement d) Link Letter

9 SME-2 is

a) Letter of Arrangement b) Agreement of Loan Cum

Hypothecation

c) Guarantee Agreement d) Link Letter

10 SME 3 is

a) Letter of arrangement b) Guarantee Agreement

c) Agreement of loan cum d) Supplemental agreement of loan cum

Hypothecation Hypothecation

11 SME-12 is

a) Letter of Arrangement b) Link Letter

c) Agreement of Loan Cum d) Revival Letter

Hypothecation

12 R & DB branches handle SME proposals up to Rs. __________ Crores

a) Rs. 5 crores b) Rs. 25 crores

c) Rs. 50 crores d) Rs. 100 crores

13 As per MSMED Act 2006, A Small Service Enterprise is one where the investment
in equipment is

a) 25 lacs to 5.00 Crore b) Less than Rs10 crs and Less than 50
crs of turnover

c) 5.00 crore to 10 Crores d) 2.00 Crore to 5.00 Crore

863
14 Facility wise Rating is applicable for ……..

a) Simplified Model Up to Rs.5.00 b) Simplified Model above Rs.5.00 Crs

Crs

c) Regular Model Up to Rs.5.00 d) Regular Model above Rs.5.00 Crs

Crores

15 A document should never be ante-dated. If a date on the document appears to be

prior to the date of stamping or the date of purchase of stamps, such document
would be treated as invalid on the grounds that --------------

a) It has not been duly stamped b) Not adequately stamped

c) Can be rectified at Sub Reg d) None of the above

Office

16 Before execution of documents the signatures of the borrowers need to be tallied

with that on the -------------

a) To be attested from Notary b) Application form

c) From other kyc documents d) Not necessary to tally

17 Whether a document can be executed by different persons on different dates?

a) Yes b) No

c) With approval of Sanctioning d) Deviation cannot be permitted

Authority for deviation

18 If the executants of the documents is an illiterate person, his left hand thumb
impression is obtained. In case of women

a) Right hand thumb impression, b) Any thumb impression

by convention

c) Only left-hand thumb for all d) Similar to male

19 Where the Loan Documents can be executed?

a) RACPC/ Branches b) Special Document Execution Desk

c) Applicant’s residence / business d) Any of the above

place/ mutually agreed place by
MOBILE TEAM

20 Precautions have to be taken to confirm the genuineness of “lost title deeds”?

864
 a) Lodging FIR b) Advertisement in prominent national
newspaper

c) Advertisement in prominent d) All the above

Local newspaper

21 Field Officer has to take precaution and follow the procedure which is mentioned
as per Section 12 of Stamp Act. The particular section deals with..........

a) Cancellation of stamps b) Execution of documents

c) Proper stamp duty d) All the above

22 Where collateral security by way of deposit of title deeds is required to be obtained

at Branches situated at non-notified centers, it would be necessary to arrange for
its creation at the Branch located at the nearest notified center. In this connection,
How the Title deeds and the legal opinion have to be sent to the Branch at the non-
notified centers?

a) By Regd insured post to the b) Through borrower in sealed cover

branch

c) By branch staff d) Any of the above

23 All title deeds and mortgage documents held against advances must be kept in the
fire proof cabinet under

a) Joint custody b) Single custody

c) Along with cash and other d) Along with Branch Documents by BM

valuables only

24 What is full form of NCGTC

a) National Credit Guarantee Trust b) National Cooperative Guarantee Trust

Company Company

c) National Corporation Guarantee d) National Common Guarantee Trust

Trust Company Company

25 DSCR full form

a) Debt Service coverage Ratio b) Deposit service coverage ratio

c) Discount service count Ratio d) Debit service coverage Rate

Please arrange the following in the right order:

865
26 i)Assessment ii) Appraisal iii) Sanction iv) Recommendation

a) ii), iv), i) & iii) b) i), iv), ii) & iii)

c) iv), ii), i) & iii) d) i), ii), iii) & iv)

27 Expand CRILC

a) Central Depository of b) Common Depository of

Information on large credits Information on large credits

c) Central Repository of d) Central Repository of Information on

Information on large credits letter of credits

28 What is the population limit for classifying as Rural under PMEGP?

a) 10000 b) 20000

c) 1000 d) 2000

29 The margin for under PMEGP for general category

a) 5% of the loan amount b) 10% of the loan amount

c) 5% of the project cost d) 10% of the project cost

30 Under PMEGP Scheme who are not part of Special Category for benefit of higher
subsidy and lower margin?

a) SC/ST/OBC/Minorities b) Women/North Eastern Region/Hill and

Boarder areas

c) Ex serviceman d) None

31 Under PMEGP, the maximum cost of the project/unit admissible under

manufacturing sector is-----------

a) Rs. 10 lacs b) Rs. 25 lacs

c) Rs. 50 lacs d) Rs. 15 lacs

32 Rate of Subsidy for Ex-Serviceman in rural area under PMEGP is

a) 25% of the loan amount b) 35% of the loan amount

c) 35% of the project cost d) Cannot be financed under PMEGP

33 The maximum cost of the project/unit admissible under business/service sector

under PMEGP is

866
 a) Rs. 10 lakhs. b) Rs. 15 lakhs.

c) Rs. 20 lakhs. d) Rs. 25 lakhs.

34 The objective of introduction of PMEGP was to generate employment through---

a) Establishment of micro b) Establishment of micro and small in

enterprises in rural as well as rural as well as urban areas
urban areas

c) Establishment of small d) Establishment of micro and small in

enterprises in rural areas rural areas

35 For setting up of project costing above Rs.10 lakh in the manufacturing sector and
above Rs. 5 lakhs in the business /service sector under PMEGP, the beneficiaries
should possess at least ___________ pass educational qualification

a) 10th standard b) VI standard

c) VIII standard d) NO such condition

36 What is the quantum of bank finance under PMEGP

a) 90% in general category b) 95% in special category

c) Both a and b d) None of the above

37 Rate of Subsidy available for General category customers for setting up of micro
enterprises in urban area under PMEGP is

a) 5% of project cost b) 5% of loan amount

c) 15% of loan amount d) 15% of project cost

38 Rate of Subsidy available for Special category customers for setting up of micro
enterprises in Rural area under PMEGP is

a) 25% of the Project cost b) 35% of the Project cost

c) 45% of the Project cost d) 50% of the Project cost

39 EBLR Means :

a) Extreme Bench Mark Lending b) Earning Before Lending Rate

Rate

c) External Bench Mark Lending d) Easy Business Liquidity Return

Rate Lending Rate

40 Nayak Committee Method is applicable for Working Capital limits upto ?

867
 a) 25% of Annual Turnover b) 1 Crore

c) 20% of Annual Turnover d) 5 Crores

41 What is the TIME NORMS fixed by our Bank for sanction of Loans upto Rs.25,000/-
under SME/Small borrowers, etc. from the date of receipt of application in complete
set

a) 2 weeks b) 4 weeks

c) 6 weeks d) 8 weeks

42 Under Credit Monitoring Arrangement (CMA), information under Form III

represents

a) Operating statement b) Analysis of balance sheet

c) Funds flow statement d) Particulars of existing/ proposed

limits from the banking system

43 Under Credit Monitoring Arrangement (CMA), information under Form V

represents

a) Operating statement b) Analysis of balance sheet

c) Funds flow statement d) Particulars of existing/ proposed limits

from the banking system

44 Prescreening of prospective new connections for exposure Rs.5 cr and above has
to be referred to

a) CRISIL b) Moodys

c) Cubictree Technology d) Any of the above

Solutions Pvt Ltd

45 Under SME Documentation, Letter of Arrangement has to be stamped as an

agreement

a) True b) False

c) Depends upon the State where d) Need not be stamped

the document is executed

46 Under priority sector, banks should not charge penal interest for loans up to

a) Rs.20,000 b) Rs.25,000

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 c) Rs.10,000 d) Rs.50,000

47 A Branch can issue a bank guarantee for a maximum period of

a) 18 months b) Upto 10 years with the permission of

Controlling Authority

c) Beyond 10 years with d) Beyond 10 years with 100% margin with the
100% margin permission of Controlling Authority

48 FFR‐I (Financial Follow-up Report‐I) needs to be submitted by the borrower .......

a) Within 67 days from the close of b) Within 67 days from the close of half‐
a quarter year

c) Within 52 days from the close of d) Within 52 days from the close of half‐
a quarter year

49 In respect of properties acquired through Gift Deed, how may TIRs are required to
be obtained?

a) 2 TIRs to be obtained if the b) 1 TIR is required to be obtained

proposed exposure is Rs. 1
crore and above.

c) 2 TIRs to be obtained in such d) 2 TIRs to be obtained if the proposed

cases irrespective of loan exposure is Rs. 2 crores and above.
exposure

50 At the time of accepting a property as mortgage, how many chain documents must
be obtained?

a) There is no purpose of obtaining b) All chain documents must be obtained.

any chain document.

c) Where all the original chain d) Both 2 & 3 are correct.

documents are not available,
minimum previous two title
deeds should be obtained along
with a declaration explaining
non availability of the original
title deeds in respect of past
transactions.

869
 Keys

Q 1 2 3 4 5 6 7 8 9 10
ANS D B D D A D D A B B
Q 11 12 13 14 15 16 17 18 19 20
ANS B C B D C B A A D D
Q 21 22 23 24 25 26 27 28 29 30
ANS A A B A A A C B D D
Q 31 32 33 34 35 36 37 38 39 40
ANS B C A A D C D B C D
Q 41 42 43 44 45 46 47 48 49 50
ANS A B C C A B D C C D

870
 SME ASSET PRODUCTS

1 What is Tarun Category under PMMY?

a) Loans upto Rs. 50000/- b) Above Rs. 50000/- to Rs. 5 lacs
c) Above Rs. 5 lacs to Rs. 10 lacs d) Above Rs. 1 lac to Rs. 10 lacs
2 Which of the following is not a variant in MUDRA scheme
a) Shishu b) Kishore
c) Varun d) Tarun
3 What are the activities covered under Stand-up India?
a) Trading, Services and b) Trade and services
Manufacturing
c) Manufacturing and Trade d) Manufacturing and services
4 What is the target group for Stand-Up India?
a) SC/ST b) Physically Handicapped
c) Women d) Both a and c
5 Maximum loan amount that can be financed under Stand-Up India is
a) Rs. 25 lacs b) Rs. 100 lacs
c) Rs. 200 lacs d) Rs. 50 lacs
6 Min loan amount that can be financed under Stand Up India is
a) > Rs. 10 lacs b) > Rs. 5 lacs
c) Rs. 1 lac d) None of the above
7 Max. Term Loan under SME Credit Card is Rs. ….. lacs
a) Rs. 5 lacs b) Rs. 7.5 lacs
c) Rs. 10 lacs d) Rs. 2 lacs
8 The maximum age criteria stipulated under SME Credit Card is___________.
a) 60 years b) 65 years
c) 70 years d) No max age stipulated
9 The minimum score, an applicant should get to be eligible for availing finance
under SME Credit Card is:
a) 50% b) 60%
c) 40% d) No such criteria
10 Under SME Credit Card Scheme, in case of composite Loan, only the Term loan
component is repayable in installments up to a maximum period of …..
a) 3 years b) 5 years
c) 7 years d) 8 years
11 Under SME Credit Card Scheme, working capital Assessment for Professional &
Self Employed is made as
a) 20% of their annual turnover b) 25% of their annual turnover
c) 50% of their Gross Income as per d) 100% of their Gross Income as per IT
IT Returns Returns
12 Which of the following is true with respect to SME Credit Card?

871
 a) The limit can be reviewed if the b) A repayment schedule has to be
credit summations are 50% of the fixed if the credit summations are
Projected Turnover. less than 50% of Projected Annual
Turnover
c) Both CC and TL can be d) All of the above
sanctioned under the scheme
13 Frequency of submission of stock statement in SME Smart Score loan
a) Monthly b) Quarterly
c) Half yearly d) Annually
14 In respect of SME Smart Score, which of the following statement is correct?
a) The Chief promoter should be 18 b) Quantum of Finance for
to 65 years of age Manufacturing unit is Rs 5.00 Lacs to
Rs 50.00 Lacs.
c) Quantum of Finance for Trading d) Margin required is 20% for WC and
unit is Rs 5 Lacs to Rs 25 Lacs. 33% for TL Component.

15 The minimum amount of Loan that can be under SME e-Smart Score?
a) Rs.5 Lacs b) Rs.10 Lacs
c) >Rs.10 Lacs d) No Minimum amount, only max
prescribed
16 The maximum amount of loan that can be sanctioned to a Manufacturing unit
under SME Smart Score?
a) Rs.25 Lacs b) <Rs.100 Lacs
c) < Rs.50 Lacs d) No max limit but as per assessment
17 The maximum amount of loan that can be sanctioned under SME Smart Score for
a Trader / Service provider?
a) Rs.25 Lacs b) <Rs.50 Lacs
c) Rs.100 Lacs d) No max limit but as per assessment
18 The age criteria stipulated for the promoter/ applicant to avail a loan under SME
Smart Score is___________.
a) Min 18 Yrs- Max 65 Yrs. b) Min 18 Yrs- Max 60 Yrs.
c) Min 21 Yrs- Max 65 Yrs. d) No Upper age limit but min 18 years
of age
19 The maximum repayment period permissible for a term loan under SME Smart
Score is
a) 5 years excluding moratorium b) 5 years including moratorium period
period of 6 months. of 6 months.
c) 7 years including moratorium d) 7 years excluding moratorium period
period of 6 months. of 6 months.
20 The minimum score that an applicant should get in order to be eligible TO avail a
loan under SME Smart Score is
a) 60% (with a minimum score of b) 50% (with a minimum score of 45%
50% under each sub head) under each sub head)

872
 c) 70% (with a minimum score of d) 75% (with a minimum score of 60%
60% under each sub head) under each sub head)

21 What is the minimum loan amount to be sanctioned under Asset Backed Loan
Scheme?
a) Above Rs. 5 lacs b) Above Rs. 10 lacs
c) Above Rs. 25 lacs d) Above Rs. 20 lacs
22 Under Asset Backed Loan (ABL) what is LTV on immovable property
a) 40% of realisable value b) 60% of realisable value
c) 75% of realisable value d) 50% of realisable value
23 What is the duration of submission of stock statements under ABL?
a) Monthly b) Half Yearly
c) Yearly d) Quarterly
24 At what intervals an Asset Backed Loan is to be reviewed?
a) Monthly b) Half Yearly
c) Yearly d) Quarterly

25 What is the LTV ratio to be maintained under ABL scheme?

a) For loans upto Rs 10 Crores: b) For Loans above Rs 10 Crores upto
60% of the realizable value Rs. 20 Crores: 50% of the realizable
value
c) 60% of the realizable value d) Both a and b
26 Which of the following unit can be financed under ABL scheme?
a) CRA of SB-10 b) CRA of SB-9
c) CRA of SB-11 d) Both a and b
27 What type of facility can be sanctioned under ABL?
a) Cash Credit b) Term Loan
c) Dropline OD d) Both a & c
28 What is the maximum period of moratorium under ABL scheme?
a) 6 months b) 12 months
c) 18 months d) No moratorium as it’s a dropline OD
facility
29 Under asset backed loan, property proposed to be mortgaged needs to be within
a radius of ____KM of the branch.
a) 10 b) 15
c) 20 d) 25
30 Under ABL & ABL CRE, Cash Margin for NFB Facility required is?
a) 10% b) 15%
c) 25% d) Margin is not required as the Drawing
Power is allowed against Collateral
Security.
31 Under ABL & ABL CRE, T I R should be obtained from two different panel
Advocate in case of the following?
873
 a) Loans of Rs 25.00 Lacs & above b) Loans above Rs 25.00 Lacs
c) Loans of Rs 50.00 Lacs & above d) Loans of Rs 100.00 Lacs & above
32 What is the Periodicity of Inspection for ABL?
a) Monthly b) Quarterly
c) Half Yearly d) Yearly
33 Minimum Loan amount under ABL –CRE-RP
a) Rs. 10.00 lacs b) Rs. 25.00 lacs
c) Rs. 50.00 lacs d) No Minimum Cap
34 What is the Repayment structure under ABL CRE-RH?
a) For a period of 12 months to 84 b) For a period of 12 months to 96
months months
c) For a period of 12 months to 120 d) For a period of 12 months to 180
months months
35 Under Aarogyam Healthcare Business Loan scheme floated for financing D
a) For ventilator b) To import Vaccine of covid related
c) For Oxygen Plant in hospitals d) All the above
36 What is the maximum loan under Aarogyam Healthcare Business Loan
a) Rs. 10 Crores b) Rs. 25 Crores
c) Rs. 100 Crores d) Need Based
37 The minimum security for loans above Rs. 2 crores under Aarogyam Healthcare
Business Loan scheme is
a) 10 % b) 15%
c) Nil d) 25 %
38 What is the margin for term loan under Aarogyam Healthcare Business Loan
Scheme?
a) 33 % b) 25 %
c) 10 % d) Nil
39 Maximum Moratorium period that can be allowed for construction of hospital
sanctioned under Aarogyam Healthcare Business Loan scheme is:
____________.
a) 12 months b) 6 months
c) 18 months d) 15 months

40 CRA/CUE rating applicable in Aarogyam Healthcare Business Loan Scheme

a) SB/CUE – 6 b) SB/CUE- 9
c) SB/CUE – 7 d) SB/CUE - 10
41 Maximum Moratorium period that can be allowed for Brownfield
(Expansion/Modernization/Renovation) project sanctioned under Aarogyam
Healthcare Business Loan scheme is
a) 6 months b) 3 months
c) 12 months d) 15 months
42 Which of the following is Correct with respect to Aarogyam Healthcare Business
Loan scheme is
874
 a) The loan can y be sanctioned as b) The loan can only be sanctioned as
TL/Cash Credit /BG/LC Overdraft.
c) The loan can only be sanctioned d) The loan can only be sanctioned as
as Cash Credit. TL
43 What is the collateral security to be obtained in case of loan amou nt above Rs. 2
Crores in fleet finance scheme?
a) Minimum 10 % tangible collateral b) Minimum 15 % tangible collateral
c) Minimum 5 % tangible collateral d) Minimum 20 % tangible collateral
44 In respect to the Repayment Program under Aarogyam Healthcare Business Loan
scheme is ?
a) Max.10 years excluding b) Max.8 years including moratorium
moratorium period period
c) Max.10 years including d) Max.8 years excluding moratorium
moratorium period period
45 Which of the following is an SME loan sourced based on Analytics?
a) PABL b) ABL
c) ABL CRE CP d) ABL RH
46 What is the facility under PABL
a) CC b) Dropline OD
c) TL d) DL
47 What is the maximum limit under PABL?
a) 5 lakhs b) 10 lakhs
c) 20 lakhs d) 25 lakhs
48 PABL is applicable for
a) Individuals b) Sole Proprietorships
c) Companies d) Both a and b

49 What is the fixed repayment period under PABL scheme

a) 36 months b) 48 months
c) 60 months d) 72 months

50 What is the pre requisite for PABL loans

a) IT returns b) Current Account with branch
c) Any borrowing relationship d) None of these
51 What is the validity of sanction of SME Open Term Loan?
a) 3 months b) 6 months
c) 9 months d) 12 months
52 What is the repayment period generally allowed under SME Open Term Loan?
a) 5 Years b) 3 Years
c) 7 Years d) 8 Years
53 Transport Operator with minimum of what number of vehicles are eligible for SME
Open Term Loan Facility?
875
 a) 10 b) 15
c) 20 d) 25
54 Which of the following not eligible for Open Term Loan?
a) All units under manufacturing b) Manufacturing units not Banking with
sector banking with us us
c) Under Service Sector: Healthcare d) All the above
Industry, Hospitality Industry and
Transport operators
55 Simplified automated quick renewal eligible amount
a) More than Rs. 10 lacs to Rs. 10 b) More than Rs. 10 Lacs to Rs,1 Cr
Crs
c) More than Rs. 50 lacs to Rs. 50 d) More than Rs. 10 lacs to Rs. 5 Crs
Crs
56 Under Simplified automated quick renewal sales should not be declined
a) More than 15 % of projected b) More than 5 % of projected
c) More than 20 % of projected d) More than 25 % of projected
57 Minimum eligibility of the unit for Simplified automated quick renewal
a) 2 years 3 years
c) 1 year No such stipulation
58 e-DFS on CLP is allowed for loan amount of
a) Above Rs. 10 lacs to Rs. 50 lacs b) Any amount
c) Above Rs. 10 lacs to Rs. 100 lacs c) Above Rs. 10 lacs to Rs. 200 lacs
59 -----------has developed a Contactless lending platform (CLP) for smooth
sanctioning of loans above Rs.10 lakhs upto Rs. 100 lacs.
a) RBI b) SIDBI
c) NABARD d) SBI
60 Maximum loan amount under e-smart score is
a) Rs. 25 lacs b) Rs. 50 lacs
c) Rs. 100 lacs d) Rs. 10 lacs
61 Frequency of submission of stock statement in SME e-Smart score loan
a) Monthly b) Quarterly
c) Half yearly d) Annually
62 Expand CLP (developed by SIDBI)
a) Contactless lending point b) Corporate lending platform
c) Contactless lending platform d) Corporate lending Point
63 Minimum and maximum loan under Aarogyam (Non Metro) health care business
loan
a) Rs. 10 lacs and Rs. 100 lacs b) No minimum and Maximum Rs. 100
lacs
c) Rs. 10 lacs and Rs. 50 lacs d) No minimum and Rs. 100 lacs
64 Minimum and maximum loan given under PM Street Vendor’s Atmanirbhar Nidhi
scheme
a) Rs.10,000 to Rs. 15,000 b) Rs. 15,000 to Rs.20,000
876
 c) Rs. 5,000 to Rs. 10,000 d) Rs. 10,000 to Rs. 25,000
65 Repayment period under PM Street Vendor’s Atmanirbhar Nidhi scheme
a) 12 months to 18 months 12 months to 24 months
c) 6 months to 12 months 6 months to 24 months
66 Validity period of the scheme PM Street Vendor’s Atmanirbhar Nidhi scheme
a) Till 31.12.2021 Till 31.01.2022
c) Till 30.06.2022 Till 31.03.2022
67 Interest subvention under PM Street Vendor’s Atmanirbhar Nidhi scheme
a) 5% b) 4%
c) 3% d) 7%
68 Minimum and maximum loan of OD amount under SME Finance for CAs under
CLP
a) Rs. 2 lacs to Rs. 25 lacs b) Rs. 2 Lacs to Rs. 10 lacs
c) Rs. 2 lacs to Rs. 10 lacs d) Rs. 2 lacs to Rs. 5 Lacs
69 Maximum loan of Term Loan under SME Finance for CAs under CLP in Metro
centres
a) Rs. 200 Lacs b) Rs. 25 Lacs
c) Rs. 50 Lacs d) Rs. 100 Lacs
70 Minimum loan amount under Bill discounting(Non LC) to MSMEs
a) Rs. 10 lacs b) Rs. 2 lacs
c) Rs. 25 lacs d) Rs. 5 Lacs
71 Eligibility condition under Bill discounting(Non LC) to MSMEs
a) SB/CUE-1 to 8 b) Not NPA in 12 months
c) Not SMA-1&2 in CRILC d) All the above
72 The maximum loan amount under Bill discounting(Non LC) to MSMEs
a) 20 % of existing limit b) 100 % of invoice value
c) Maximum Rs.2 Crore d) Any of the above which ever is lower
73 What is the minimum and maximum loan under SME Marble Plus
a) More than Rs. 10 lacs to Rs. 10 b) More than Rs. 25 lacs to Rs. 10 Crs
Crs
c) More than Rs. 10 lacs to Rs. 2 Crs d) More than Rs. 10 lacs to Rs. 5Crs
74 What is the hurdle rate under SME Marble Plus
a) SB-5/CUE-5 b) SB-9/CUE-9
c) SB-10/CUE-10 d) SB-7/CUE-7
75 What type of facilities can be given under SME Marble plus scheme
a) Only Cash Credit b) Only Term Loan
c) Term Loan and OD Drop line d) Both and C
76 What is minimum collateral required if not covered under CGTMSE in SME Marble
plus scheme
a) 50 % b) 10 %
c) 25 % d) 33 %
77 What are the two Verticals created at Corporate Centre to deal with e-Dealer
Finance Scheme
877
 a) SMEBU & TBU b) SCFU & PBBU
c) REHBU & SCFU d) SCFU & TBU
78 Under bank’s e-VFS scheme the letter “V” stands for
a) Vector b) Variable
c) Vendor d) Verifiable
79 Under SBI eDFS, the borrower/dealer will have the following advantages :
a) Low Interest Rates b) 100% financing of Invoices
c) Flexible Collateral terms d) All the above
80 SCFU full form in connection with e-DFS
a) Supply Creditors financing unit b) Sundry Creditors Financing unit
c) Supply chain finance unit d) Supply Chain funding unit
81 Under e-DFS scheme, term and conditions for tie up, e-DFS agreement, format of
letter of comfort are shared with
a) Industry Major b) Borrower
c) Dealer of the stock d) All the agents of the stock
82 e-VFS involves financing against
a) Stocks b) Borrower paid stocks
c) Receivables of vendors of d) Borrower stock and receivables
reputed Industry Majors
83 Operation unit of SCFU is located at
a) Nariman Point Branch b) Shivsagar Branch, Mumbai
c) Commercial Branch Mumbai d) Corporate Centre Mumbai
84 In the post sanction stage of a SME car loan, vehicle registration details can be
verified from the website .........
a) Vehicle.org.in b) Vahan.nic.in
c) RTA website d) Vehiclereg.gov.in
85 Flexi loan for Trade & Services minimum and maximum loan limits are
a) Rs 1 lac, Rs 50 Lacs b) Rs 10 Lacs, Rs 50 Lacs
c) Rs 15 lac, Rs 200 Lacs d) Rs 5 Lac to 100 Lacs
86 Maximum loan amount under e-Mudra
a) Rs.10,000/- b) Rs.25,000/-
c) Rs.50,000/- d) Rs.5,000/-
87 DSCR full form
a) Debt Service coverage Ratio b) Deposit service coverage ratio
c) Discount service count Ratio d) Debit service coverage Rate
88 If SSI unit intends to avail credit facility under SME Credit Card Scheme, what type
of collateral security will be taken by the bank?
a) Equitable Mortgage b) Regd. Mortgage
c) Third Party Guarantee d) Not to be insisted upon
89 Expand CRILC
a) Central Depository of Information b) Common Depository of
on large credits Information on large credits

878
 c) Central Repository of Information d) Central Repository of Information on
on large credits letter of credits
90 In respect of SME Smart Score, which of the following statement is not correct?
a) The Chief promoter should be 18 to 65 b) Quantum of Finance for is Minimum above
years of age Rs 10.00 Lacs and Maximum below Rs 50
Lacs.
c) Margin required is 20% for WC and 33% d) Quantum of Finance for Trading unit is Rs 5
for TL Component. Lacs to Rs 25 Lacs
91 IN SME e-Smart Score (CLP) , which rating is applicable?
a) Only CUE b) Both rating applicable
c) Only CRA d) either CUE/CRA
92 How many days are available under Perfection of security in ABL CRE-CP?
a) 45 days b) 60 days
c) 15 days d) 30 days
93 Assessment of Working Capital limits under ABL CRE CP scheme will be done as
per
a) Assessed Bank Finance b) Cash Flow of the project
c) Turnover method d) Traditional Method
94 Under ABL –RH, which immovable property is not eligible as security
a) SEZ Property b) Open Land outside urban limits
c) Industrial Property d) All of the above
95 In SME e-Smart Score(CLP), the limit assessed based on
a) 115 % of last year sales 25 % of projected sales
c) 100 % of last year sales 33 % of projected sales
96 What is the maximum loan under Standby Line of Credit for MSME
a) 20% of Working Capital, Maximum 1.25 b) 20% of Working Capital, Maximum 1 Crore
Crores
c) 25% of Working Capital, Maximum 1.25 d) 25% of Working Capital, Maximum 1 Crore
Crores
97 Existing Units of Limits upto ____ only are eligible are eligible for additional
finance under Standby Line of Credit for MSME?
a) Rs. 1 Crore b) Rs. 2 Crores
c) Rs. 5 Crores d) None of the above
98 What is the maximum period within which the Standby Line of Credit for MSME
needs to be repaid?
a) Within 2 months b) Within 12 months
c) Within 6 months d) Within 3 months
99 What is the minimum rating required for loans under Standby Line of Credit for
MSME?
a) SB/CUE – 5 b) SB/CUE -6
c) SB/CUE – 10 d) All Units irrespective of Rating
100 What is the minimum margin for Standby Line of Credit for MSME?
a) 10% b) 15%
c) 25% d) NIL

879
 ANSWERS to MCQs – SME ASSET PRODUCTS
1 C 2 C 3 A 4 D 5 B
6 A 7 C 8 D 9 B 10 B
11 C 12 D 13 A 14 A 15 C
16 C 17 B 18 A 19 C 20 A
21 B 22 B 23 D 24 C 25 C
26 B 27 D 28 C 29 D 30 C
31 B 32 C 33 C 34 A 35 D
36 D 37 D 38 B 39 C 40 D
41 C 42 A 43 D 44 C 45 A
46 B 47 C 48 D 49 A 50 B
51 D 52 A 53 D 54 B 55 C
56 C 57 B 58 C 59 B 60 C
61 B 62 C 63 D 64 B 65 A
66 D 67 D 68 A 69 D 70 B
71 D 72 D 73 A 74 B 75 D
76 A 77 D 78 C 79 D 80 C
81 A 82 C 83 B 84 B 85 D
86 B 87 A 88 D 89 C 90 D
91 A 92 D 93 B 94 D 95 A
96 C 97 C 98 B 99 D 100 D

880
 Digital Banking / IT Products

EXERCISE - 1

1 In CBS, management of security forms has also been made a part of the
software/system through menu- VPIS. The term VPIS stands for
a) Valuable Paper Industry Sector b) Valuable Paper Inventory System
c) Valuable Paper Instrument System d) Valuable Paper Instrument Sector
2 CMP stands for
a) Cash Management Product b) Classified Management Product
c) Collection Management Product d) Clearing Management Product
3 In Core Banking Solution, a 'Vault Teller' means
a) Branch Manager b) Cash Officer
c) Accountant/Joint Custodian d) All of the above
4 Exim bills is the software for handling trade finance transactions, and it is
procured from ___

a) China Systems, Taiwan b) Oracle

c) Comlink, USA d) Financial Network Services

(FNS), Australia
5 Core Banking Solution-Hardware installed at CDC has been acquired from
a) Wipro b) HP Systems, USA
c) TCS Ltd. d) PCS Ltd
6 Centralized Data Base/Main Server for Core Banking Branches has been
situated at
a) All LHOs b) FD, Kolkata
c) SBIIT, Hyderabad d) Central Data Centre at Belapur,
Mumbai
7 The first branch of State Bank of India where Core Banking was started is
a) PBB- Kolkatta b) Hiranandani, Mumbai
c) PBB Chennai d) PBB-Hyderabad
8 Remittance through Fxout is available to resident Indians under ___________of
RBI. Remittance from NRE/FCNR (B) account can also be processed through
Fx-Out.. However, remittance from ____ account is not permitted under Fx-out
a) Liberalized Remittance Scheme b) Liberalized Remittance Scheme
(LRS), NRO (LRS), Savings bank account
c) Liberalized Remittance Scheme d) Liberalized Remittance Scheme
(LRS), NRI (LRS), RFC
9 TRS app has been introduced in CBS to ensure timely and correct TDS
deduction, remittances and reporting and proper handling of TDS related
notices/orders, bank has decided to centralize handling of TDS w.e.f. 1st April,
2017. What is full form of TRS?
a) Tax reporting system b) TDS Reviewing system
c) TDS Reporting System d) None of the above
10 The acronym of “CORE' is
a) Centralised Operations b) Centralised Online Response

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 Response Engine Environment
c) Centralised Online Real-time d) Centralised Offsite Response team

Environment
11 B@ncsLink software is a __________
a) Transaction Software for front b) Software for trade finance

office
c) Transaction software for CDC and d) Maintains of centralized database
inter Branch transactions

12 B@ncs24 software is a _______

a) Transaction Software for front b) Software for trade finance

office
c) Transaction software for CDC and d) Maintains of centralized database
inter Branch transactions
13 “Finance One” software is to
a) Maintain Database b) Maintain Trade finance
c) Maintain CGL d) Maintain BGL
14 The Disaster recovery site is located at ___ for CBS and INB

a) Hyderabad b) Bangalore

c) Chennai d) Mumbai
15 The Disaster recovery site is located at ___ for ATM
a) Hyderabad b) Bangalore
c) Chennai d) Mumbai
16 What is SAN?
a) Short Account Number b) Smart Account Number
c) Smart Access number d) Short Access number
17 ADS stand for
a) Active Dialling Service b) Active Directory Service
c) Active Dialling System d) Active Directory System
18 Finacle software is procured from _____
a) Comlink, USA b) Infosys
c) TCS d) HCL, UK
19 Corporate General Ledger – Finance One is procured by

a) Accenture Ltd, London b) COMLINK, USA

c) SATYAM/MAHINDRA, India d) SIFY Solutions, Japan
20 Roopantar is a modified version of

a) Mobile banking application b) Internet banking application

c) .CBS application d) Core banking solutions
21 What is the name of the software used for online forex rates
a) CBS Roopantar b) SFMS

c) Mercury FX d) Exim Bills

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22 (ADS) Active Directory Services developed by
a) Infosys b) GITC Belapur
c) Microsoft d) TCS
23 What is Metagrid?
a) It is a computer security grid b) It is a CBS server maintained New
Delhi as a back-up
c) It is related to service charges for d) Metagrid is web-based software
forex related services application for retail sale of gold coin
24 GLCNTR report is used for reconciliation of ____________
a) System Suspense Account b) Cash
c) ATM d) Forex General Account
25 ____________report is used for reconciliation of Glif (cash) entries

a) System Suspense Accounts b) Irregularity Report

c) Glcomp d) ATM
26 Every day after EOD, ____________ generates a set of reports for each Branch
and these are transmitted through ftp

a) CDC b) LHO
c) Branch d) None of the above
27 Branch Server is identified by an IP Address like ftp://A.B.C.D where C stands
for

a) LAN b) Network
c) SERVER d) CAP
28 Branch Server is identified by an IP Address like ftp://A.B.C.D where D stands
for

a) LAN b) Network

c) SERVER d) CAP
29 The Branch Server which is identified by an IP Address like ftp://A.B.C.D where
A is __________ .

a) LAN b) Network
c) SERVER d) CAP
30 Branch Server is identified by an IP Address like ftp://A.B.C.D where B stands
for

a) LAN b) Network
c) SERVER d) CAP (City Aggregation Point)
31 EOD is done by_________
a) Branch b) ITS Department, Corporate Centre
c) CDC, Belapur d) . None of these
32 CGL 1148 is related to which head_________________
a) Branch Suspense Accounts – Credit b) System Suspense Accounts – Credit
Entries
c) Cash Balance Account d) CIBA Account
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33 CGL account starting with 2148 stands for ____________

a) System Suspense Accounts – Debit b) Savings Bank Accounts – Per

Entries Segment
c) Current Accounts d) Charges Account

34 Full form of BIAK

a) Built-in Authentication Key b) Bit In Authentication Key

c) Byte in Authentication Key d) Botnet In Authorisation Key

35 Full form of VIRUS

a) Virtual Internet Reuter Uninterrupted b) Vital Information Resources Under

System Siege

c) Virtual Intranet Reuter d) None of these

Uninterrupted System
36 CCDP stands for ______________

a) Centralised Credit Data Processing b) Credit Centralised Data Processing

c) Credit Confirmation Data d) None of the above
Processing

37 Score of CIF in CBS for KYC is____________

a) 80 b) 200
c) 110 d) 100
38 In CBS, GLIF stands for

a) General Ledger Interface File b) General Ledger Intranet File

c) General Ledger Internet File d) None of these

39 In CBS, GLCC represents

a) General Ledger Confidential Code b) General Ledger Classification Code

c) General Ledger Confidential d) None of these

Classification

40 IBCH in CBS stands for

a) In-Branch Cash Handling b) Inter Branch Cash Handling

c) Internet Based Cash Handling d) None of the above

41 Under account segment code 0806 refers to

a) Per-Dom-Pub b) Per-Dom-Staff

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 c) Per-NRI d) C&I

42 In NEFT the settlement is on DNS basis, what is DNS?

a) Data Network Server b) Digital Network Software

c) Deferred Net Settlement d) None of these

43 .Minimum/ Maximum Amount that can be remitted through RTGS
a) No Minimum & No Maximum b) Minimum Rs 1 Lac & No Maximum
c) Minimum Rs 50,000/- & Maximum d) Minimum Rs 2 lac & No Maximum
Rs 100 Lac
44 Anti-virus used in our bank is
a) Symantec b) Mcafee
c) Foxpro d) Trend Micro
45 Expand TLC
a) Tech Leading center b) Tech Learning Centre
c) Tech Lending Center d) Tech Learning Cell
46 Expand IMPS
a) Immediate Payment Service b) Immediate Payment Section
c) Immediate Payment Solutions d) Intermediate payment Solutions
47 HTTP stands for
a) Hyper text Transfer protocol b) Hyper Test Transfer protocol
c) High Text Transfer protocol d) High Test Transfer protocol
48 Which one of the following is not a part of CEEP?

a) QMS b) Grahak Mitra

c) Branch Choreography d) CMS

49 NPS (Net Promoter Score) in CEEP represents
a) Customer’s experience in current b) Score given to the BM for effective
visit implementation of CEEP
c) Feedback score given for d) Customers who are likely to
a particular transaction recommend SBI

50 The link to the new Debit Card Management System (DMS) is available in the

a) CBS b) INB
c) ATM d) YONO

885
 KEY- EXERCISE – 1

Q 1 2 3 4 5 6 7 8 9 10

ANS B A C A B D B A C C

Q 11 12 13 14 15 16 17 18 19 20

ANS A C C C A A B B B D

Q 21 22 23 24 25 26 27 28 29 30

ANS C C D A C A A C B D

Q 31 32 33 34 35 36 37 38 39 40

ANS C B A A B A C A B A

Q 41 42 43 44 45 46 47 48 49 50

ANS C C D D B A A D D A

886
 EXERCISE - 2

1 Who is responsible for security of Desktop/Laptop/Server

a) System Administrator b) User

c) Department Head d) Security Officer Head

2 If a user requires any change in hardware or software settings whom

he/she should contact

a) IT Head b) Head of Department

c) System Administrator d) Supplier of Hardware/Software

3 Information Security is all about ensuring

a) Confidentiality of Data & Services b) Integrity of Data & Services

c) Availability of Data, Non-Repudiation d) All of the above

& Services

4 To prevent unauthorized access while desktop is unattended,

which measure is most suitable

a) Shutdown the desktop b) Lock the keyboard/mouse

c) Lock the Desktop/ Enable the d) Power off the monitor

screensaver with password
5 How can a user protect sensitive data on laptop in the event of loss of
laptop

a) By creating hidden files/folders b) By enabling Boot level power-

on password
c) By enabling screensaver d) By using encryption
6 In the event of loss of laptop whom should be contacted immediately

a) Police station b) Controller & Information

Security Department
c) Insurance Company d) Bank’s Security Officer
7 A good password is

a) Name/short form of name/initials b) Names of family /friends /

colleagues / institution
c) Combination of alphabets and d) Combination of alphabets,
numbers numbers and special
characters
8 If Internet is misused from a user’s desktop, who is responsible

887
 a) The person who has misused b) The user whom the desktop
belonged to
c) The department where the desktop d) IT-Networking department
is located

9 Which one is not suggested while enabling a browser

a) Set browser security setting to b) Configure browser to
medium remember web application
passwords
c) Enabling ID displays in web d) Maintaining history of URLs
applications

10 Which of the under mentioned is a good practice to prevent revelation of

sensitive information
a) Reading confidential documents in b) Working on laptops in public
public places places
c) Not answering to queries over d) Providing information to
phone to unverified persons vendors/suppliers

11 Information Security Department is headed by

a) CGM Risk Management b) DMD & CRO
c) Chairman d) GM & Group CISO
12 Who is responsible for selection of encryption technology for Data
security

a) Head of department b) Head of IT department

c) Information Security Department d) Application owner in
(ISD) consultation with ISD
13 What method(s) can be used to protect sensitive data from prying eyes?

a) Passwords b) File Permissions

c) Encryptions d) All of the above
14 Who is authorized to block ports through firewall

a) IT-Networking dept. as advised by b) ISD

ISD

c) Service Provider d) System Administrator

15 Which device should be installed to monitor the traffic from external
networks
a) Switch b) Router
c) Firewall d) Intrusion Detection System
16 Are you free to do whatever you want with your network-connected
computer?
a) Yes, It’s my personal computer and b) No. I have to be a responsible
I can do what I please member of the networked
community and am bound by
the George Mason
Responsible Use of Computing
Policy
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 c) No. I have to be a responsible d) Both b and c.
member of the networked
community, which includes being
aware of the Wireless Network
Policy
17 ISC stands for
a) Information Security Council b) Information Security
Corporation
c) Information Security Committee d) None of the above
18 Security incidents should be reported by Branch Manager to

a) IT-RMD through service desk b) Regional Manager

c) Security Officer d) None of the above
19 Which register is used to record the detail of changes and amendments
of user type, capability, user reset and forced closures?

a) User Control Register b) User Access Register

c) Hardware Access Register d) System Room Access register
20 What is biggest Vulnerability to computer information Security?

a) End Users b) Instant Messaging, Peer tp

Peer (P2P) application
c) Malware-virus, worm, spyware d) Spam, Phishing attack
21 Where can an employee find details related to information security on our
intranet

a) In SSO b) In Service Desk

c) In SBI Times > Department > d) IN Trade Finance

information Security
22 Failure of Bank‘s computer system as per Basel II norms is attributable to
which type of risk
a) System Risk b) Operational Risk
c) Computer Risk d) Technology Risk
23 Unauthorised intrusion by outsiders into a computer or Network is

a) Phishing b) Vishing
c) Spam d) Hacking

24 People without internet access and people with internet access, what do
we call the divide

a) Demographic Divide b) Digital Divide

c) Netizen Divide d) None of these
25 What is Spam?

a) Data Interception b) A kind of Cyber Crime

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 c) Data Theft d) Irrelevant and unsolicited
messages sent/received over
internet typically to a large
number of users for the purpose
of phishing / spreading malware
26 Phisher means________

a) Persons targeting the customers of b) Hacker

the Bank
c) Social Engineering Crime d) None of these
perpetrator
27 Information Security is all about ensuring CIA which stands for

a) Criticality; Information & Availability b) Confidentiality; Integrity &

Availability
c) Confidentiality; Integrity & d) Confidentiality; Innovation &
Applicability Availability

28 Safeguarding the accuracy and completeness of information and

processing methods means __________

a) Confidentiality b) Integrity

c) Accountability d) Availability

29 Information is accessible only to those authorized to have access means

_____

a) Confidentiality b) Integrity

c) Accountability d) Availability

30 Authorized users have access to information and associated assets as

per commitment when required refers to _________

a) Confidentiality b) Integrity

c) Accountability d) Availability

31 Maintaining CIA in the true spirit is the responsibility of

a) System Administrator b) Bank Management

c) Branch Manager d) All of us collectively

32 Users’ compromising one / many of CIA –by act of commission or
omission would lead to

a) Good Customer Service b) Enhancement of Business

c) Technological or Operational frauds d) Violation of Business Rules
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33 The “IS Policy, IT Policy and related Procedures and Guidelines” is
approved by_______________

a) Shareholders b) DMD (IT)

c) CGM (IT) d) Board of Directors
34 Technology enabled the Bank to provide access to users
on________________

a) Need to Have Basis b) “Need to Know” basis

c) Need to Know” or “Need to Have” d) “Need to Know” and “Need to
basis Have” basis

35 Firewalls, Intrusion Detection / Prevention Systems, Web Application

Firewalls, Anti-virus, Active Directory Setup, Biometric Authentication
System, Internet Proxy Gateway, Patch Management system, Privileged
Identity Management, Anti-Phishing are all_______________

a) Components used in Hardware b) Various Security Tools /

Technologies deployed by the
Bank
c) Network Components d) None of these
36 SBSOC in the context of IS Security stands for

a) State Bank System Operations b) State Bank Strategic

Centre Operations Centre
c) State Bank Security Operations d) None of these
Centre
37 The SBSOC has been setup for _____________

a) Avoid System Risks b) Meet the Competition in IT

c) Data requirements of RBI d) Real-time Monitoring, Analysis,
Correlation and Incident
Management based on the logs
generated by IT Assets

38 Bank has achieved various Global Accreditation ISO

27001______________

a) IT Hardware Procurement b) Information Security

Management Systems (ISMS)
c) Cloud Computing Management d) None of these
39 ____________ are dynamically generated and displayed in uneven form,
uneven location by websites

a) ADS b) GUI
c) CAPTCHA d) None of these
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40 Websites use CAPTCHA to protect against

a) Dictionary Attack b) VIRUS

c) SPAM d) HACKING
41 Password should be changed at least once in _____ days or when you
_________

a) 90 days; suspect it has b) 30 days; suspect it has been

been compromised compromised
c) 45 days; suspect it has been d) None of these
compromised
42 Email sent from Bank provided email ID is as good as letter on_________

a) Bank’s letter head b) a personalised Email

c) Mail from Corporate Centre d) None of these

43 Confidential or secret information should be _________________when
transmitted over email

a) Encrypted or password protected b) Sent through SMS and Email

c) Always sent by fully sealed hard d) Personally sent through an

copy letters Official
44 ______is a mechanism by which the sender encrypts the message by
using “Public” key of intended recipient. The recipient applies own
“Private” key to decrypt the message.
a) ADS b) Digital Signature
c) Ethical Hacking d) None of these
45 By using Digital Signature,________________ is ensured

a) Acknowledgement of the recipient b) Bank’s interest alone is

protected
c) “Non Repudiation” d) Hacking cannot be done
46 Emails that are not digitally signed should not be used for
a) Critical transactions requiring legal b) Official Purposes
authentication of sender

c) Personal Purpose d) Any Purpose

47 Providing email ID to any mailing lists / internet websites / Internet

newsgroup / discussion board might result into receiving emails like
marketing, lottery, draws, phishing etc. called as ______________

a) Hacking b) Cyber Theft

c) Intrusion d) SPAM
48 Computer Security Day is on_________

a) 1st Nov b) 15th Nov

c) 30th May d) 30th Nov

892
 49 ISO carries out the ‘Identify’ and ‘Prevent’ functions of NIST framework for
Cyber Risks and ensures against any exploitation on Confidentiality,
Integrity, and Availability. ISO stands for

a) Information Security Operations b) Information System Operations

c) Interoperable Systems Operations d) Internet System Operations

50 ______________is the process of converting information or data into a
code, especially to prevent unauthorized access

a) Interface b) Decryption
c) Encryption d) None of these

EXERCISE – 2

Q 1 2 3 4 5 6 7 8 9 10
ANS b c d c d b d b b c
Q 11 12 13 14 15 16 17 18 19 20
ANS d d d a d d c c a a
Q 21 22 23 24 25 26 27 28 29 30
ANS c b d b d a b b a d
Q 31 32 33 34 35 36 37 38 39 40
ANS d c d d b c d b c a
Q 41 42 43 44 45 46 47 48 49 50
ANS a a a b c a d d a c

893
 EXERCISE - 3

1 What is the full form of YONO?

a) You Need Only One b) You only need once

c) You Only Need Online d) You Only Need One

2 From the following guidelines for Registration and Login of YONO, pick the
odd one out.

a) OS for Android devices-Version 5.0 b) OS for Apple devices – iOS 10.0 and
and above above

c) Internet connection: Cellular(3G/4G) d) The mobile/tablet (Android/Apple)

or Wireless (1 Mbps and above) devices should have OS based
locking mechanism (Passcode,
Pattern lock, Biometric Verification.

3 In YONO, for opening of Digital Savings Account, customer has to voluntarily

provide Aadhaar / VID. The full form of VID is
a) Voice Identification Device b) Virtual Identity Number

c) Vault Identity Number d) None of the above

4 On Yono app and portal, what is the maximum amount for a Tax Saver fixed
deposit?

a) INR 1,00,000 lakhs in a financial year b) INR 1,50,000 lakhs in a financial year
c) INR 150000 and INR 200,000 for d) INR 150000 and INR 500,000 for
senior citizens senior citizens

5 On Yono app and portal, which detail of the My Dream I cannot view?

a) Dream Name b) Dream Period

c) Dream amount d) Dream Image if not uploaded

6 On Yono app and portal, what is tenure applicable to Tax Saver fixed deposit?

a) 3 years to 5 years b) 5 years to 7 years

c) 5 years to 10 years d) More than 10 years

7 YONO Global will be launched in how many countries during FY 2020-21

a) 6 b) 7

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 c) 5 d) 9

8 In YONO platform, if a customer wants to order food which menu should he/she
choose?

a) Online Market Place b) Relationship Overview

c) Shop & Order d) Financial Super Store

9 The feature in YONO to analyze the expenditure pattern in a particular period

is available for ___________ accounts under ________

a) Transaction; Transactions History b) Deposit; Online Market Place

c) Transaction; Spend Analysis d) Savings Bank Account; Relationship

Overview

10 Customer can login in YONO app by

a) INB credentials b) 6 digit MPIN

c) Both (a) & (b) d) None of the above

11 Which information is captured under “Relationship Overview” in YONO app

a) SBI Life, SBI General Insurance, SBI b) SBI Mutual Funds

Cap Securities

c) SBI Card d) All the above

12 In YONO a user can view the transaction details there will be maximum…..
transaction or last 6 months of transactions which ever is more?

a) 159 b) 169

c) 179 d) 149

13 “My Dream” feature in YONO platform creates which type of deposit in the
background?

a) Recurring Deposit b) Fixed Deposit

c) Tax Saver Fixed Deposit d) None of the above

14 Where can a user see the PAPL offer in YONO?

a) Post login-home page—notification b) On Shop and Order page as banner

895
 c) Both a & b d) None of the above

15 YONO is integrated with which 3rd party for fulfilment of Bill Payments?

a) Payubiz b) Citrus

c) CCavenue d) Bill desk

16 What is the address for website login of YONO ?

a) https://sbiyono.sbi b) https://www.yonosbi.co.in

c) https://yonosbi.com d) https://www.yono.sbi

17 “SIA”, chat bot in YONO stands for

a) State Bank Intellectual Assistant b) State Bank India Assistant

c) State Bank Intelligent Associates d) State Bank Intelligent Assistant

18 What is the value of 1 reward point in YONO

a) 10 paise b) 50 paise

c) 25 paise d) None of these

19 What is the maximum OD against deposit that can be availed in YONO

a) Rs 5.00 cr b) Rs 3.00 cr

c) Rs 2.00 cr d) Rs 10.00 cr

20 What is the minimum OD against deposit that can be availed in YONO

a) Rs 25000 b) Rs 10000

c) Rs 50000 d) Rs 100000

21 What is YONO cash?

a) It is the facility in YONO for transfer b) It is facility in YONO to make a

of fund to any account request of cash withdrawal without
using Debit Card

c) It is the facility in YONO for d) None of the following

withdrawal of Cash using Debit Card

22 The Transaction Number for YONO Cash will have a validity of maximum
________minutes

a) 120 b) 180

c) 240 d) 60

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23 Under YONO Cash@POS, Transaction limit per transaction per account is
Rs._____________ with a maximum ceiling upto Rs. ________ per transactions

a) Rs. 500 & Rs.5000 b) Rs. 500 & Rs.5000

c) Rs. 500 & Rs.2000 d) Rs. 100 & Rs.2000

24 What is the minimum amount that can be withdrawn using YONO cash facility
a) Rs. 500 b) Rs. 1000

c) Rs. 100 d) Rs. 1500

25 What is the maximum amount per transaction that can be withdrawn using

YONO cash facility

a) Rs. 5000 b) Rs. 10000

c) Rs. 20000 d) Rs. 15000

26 Under which option of Smart Cheque Deposit of YONO, can the customer
enquire the status of the cheque entered by him in the YONO app?

a) Transaction Enquiry b) Cheque Enquiry

c) View Status d) None of the above

27 Whether PDCs are accepted in CDK?

a) Yes b) No

c) Can’t Say d) None of these

28 How many cheques a customer can submit at once?

a) 5 b) 1

c) 10 d) 2

29 Customer has entered the cheque details in YONO app under smart CDK option
and generated reference number. What is the validity of this reference number
for depositing cheque in CDK?

a) 30 days b) 20 days

c) 15 days d) 10 days

30 Which of the following option a checker has to choose, if there is error data
entry by the maker while updating KYC through YONO branch interface NFS
module?

a) Deny b) Reject

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 c) Send back to Maker d) Return to Maker

31 In KYC/Profile Update of YONO, which of the following Profile fields is not

mandatory.
a) Mobile Number b) E-Mail

c) BSR Organisation Code d) PAN / Form 60

32 Who are eligible to open accounts through YONO?

a) Individual, Literate, Resident of India b) Individual resident with any age

and above 18 years of age

c) Individual resident with below 18 d) None of these

years of age

33 What is DAC?

a) Document Archived Centre b) Documentation Archived Centre

c) Document Archival Centre d) None of the above

34 In YONO Krishi, which of the following customers is NOT eligible to avail Agri.
Gold Loan

a) Agri. Land owners b) Illiterate customers

c) Existing KCC borrowers d) All of the above are eligible

35 What are the important features in Yono Krishi

a) Mandi b) Mitra

c) Agri gold loan d) All of the above

36 Under YONO KRISHI, Mandi is for enabling farmers for ________

a) Purchase of implements, pump-sets, b) It is weather forecast and other

etc. helping needs for farmers

c) Farmer can arrange for insuring their d) None of the above

crop

37 Under Mitra in YONO Krishi, a farmer can ____

a) Purchase implements, seeds b) Get Agri Gold Loan data

c) Weather forecast and other helpful d) None of the above

resources for agriculture

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38 What is the name of the functionality developed by the Bank which enable
customers withdraw cash from selected ATMs/Recyclers without using their
debit card?

a) Contactless Card b) YONO Cash

c) EMV enabled Card d) SBI Fastag

39 The eligible customers under PAPL scheme have to do the following to avail
the loan:

a) Approach their Home Branch and b) Approach any branch and execute
execute the documents the documents
c) By clicking the required responses, d) All the above are correct options
the loan account is instantaneously
created without any paperwork

40 The eligible customers under PAPL are intimated through

a) SMS b) e-mail

c) Push intimation through YONO app d) All the above are correct options

41 How the eligibility of the customers is assessed under YONO PAPL?

a) Branch staff scrutinise the b) Staff have to apply online and CPCs
income documents and will assess the eligibility
recommend
c) The eligible customers are pre- d) None of the above options is correct
selected by analytic engine

42 If any customer is eligible for two loan products i.e. Xpress Credit and PAPL
what will be the process?

a) Customer can avail both the loans b) Customer can avail only one loan,
simultaneously which loan limit is lower

c) Customer can avail only one loan, d) Both the loans will be cancelled
which loan limit is higher

43 The loan account under YONO PAXC will be opened automatically by the
system under which branch?

a) Customer’s Home Branch where the b) Any branch as per customer’s choice
CIF is maintained

c) Branch in which the salary/income d) None of the options is correct

account is maintained

899
44 How Long the offer of PAXC is available for the customer?

a) Customer has to avail within 15 days b) Customer has to avail PAXC within
from the notification the calendar quarter in which the
offer is made

c) Customer has to avail within 30 days d) Customer has to avail PAXC with the
following calendar quarter in which
the offer is made

45 On Yono App/Portal, what is the maximum amount offered under PAPL for Pre-
Approved Personal Loan

a) Rs.25000/- b) Rs.100000/-

c) Rs.50000/- d) Rs.200000/-

46 Insta Pension Top Up Loan is a new product under Pension Loan in YONO
platform. Which among the following is incorrect?

a) Minimum existing Pension Loan Limit b) Satisfactory repayment record for the
of Rs 1 lac last 1 year

c) Minimum residual maturity of d) Maximum loan limit is 2,50,000/-

Pension Loan - 1 year

47 Validity of Insta Pension Top Up Loan is

a) Within calendar quarter from the offer b) Within one month from the offer

c) After the calendar quarter from the d) Within two months from the offer.
offer

48 What is CDIF while opening of account through YONO?

a) Customer Document b) Customer Data Information Format

Information Format
c) Customer Data Input Form d) Customer Document Information File

49 Preapproved Xpress credit through YONO is repayable within …..months

a) 48 b) 60

c) 36 d) 72

50 What is the maximum sum assured for SBI General personal Accident
Insurance (PAI)?

a) Rs. 10 lacs b) Rs. 15 lacs

c) Rs. 20 lacs d) Rs. 25 lacs

900
51 In Digital account opening journey through OVD at the branch, the physical
documents and forms are required to be sent to...........

a) Liabilities Central Processing Centre b) Documents Archival Centre (DAC)

(LCPC)

c) Retained at the branch. d) Project Lotus Department

52 What is the limit for maximum loan amount under Pre- Approved Xpress Credit
(PAXC) through YONO?

a) Rs. 2,00,000/- b) Rs. 5,00,000/-

c) Rs. 8,00,000/- d) Rs. 1,00,000/-

53 What is the limit for maximum loan amount under Xpress Credit Insta Top up through
YONO?

a) Rs. 2,00,000/- b) Rs. 3,00,000/-

c) Rs. 1,00,000/- d) Rs. 5,00,000/-

54 Under YONO Krishi, Agri Gold Loan and KCC review is available in _________

a) Self Assist Mode b) Customer Portal

c) Branch Portal d) All the above

55 With a view to encourage/ facilitate Agri lending through partnership model with
Corporates in hassle free manner, a new pre-approved loan ___________ has been
launched

a) SAFAL b) FASAL

c) ATL d) None of the above

56 Expand SAFAL Which is available in YONO Krishi

a) Safe and Free Agri Loan b) Simple and Fast Agri Loan

c) Secure and Fast Agri Loan d) None of the above

57 The purpose of SAFAL is to meet the ____________ needs of the farmers.

a) Dairy farming b) Goat rearing

c) Sheep rearing d) Poultry

58 What is the maximum loan amount sanctioned under YONO KRISHI SAFAL
DAIRY

901
 a) Rs. 2,00,000/- b) Rs. 1,00,000/-

c) Rs. 5,00,000/- d) Rs. 3,00,000/-

59 Presently who are eligible to open NPS (National Pension Scheme) account on
YONO portal?

a) Existing RI Customers b) Existing NRI customers

c) New to Bank customers d) CSP account holders

60 NPS account opening is YONO is available in which tab?

a) My Deposits b) My Investments

c) My Dreams d) Pre Login page

KEY- EXERCISE – 3

Q 1 2 3 4 5 6 7 8 9 10
ANS d b b b d c d c c c
Q 11 12 13 14 15 16 17 18 19 20
ANS d d a c d a d c c a
Q 21 22 23 24 25 26 27 28 29 30
ANS b c d a c c b c a d
Q 31 32 33 34 35 36 37 38 39 40
ANS b a c d d a c b c d
Q 41 42 43 44 45 46 47 48 49 50
ANS c c c b d d b c d C
Q 51 52 53 54 55 56 57 58 59 60
ANS b c b d a b a d a b

902
 EXERCISE - 4

1 CRM stands for

a) Customer Response Management b) Customer Request Management
c) Customer Relationship Management d) Customer Review Management
2 Who will do the role mapping for users in branch in CRM?
a) CRM nodal officer b) Field Officer
c) Admin at LHO d) Branch Manager
3 Which of the following is not a benefit of CRM?
a) Attract more customers and helps to b) Improved internal communication
retain the existing customers
c) Improved customer satisfaction. d) Increased complaint resolution time

4 In CRM, for Asset products which of the following roles available?

a) Branch Manager (BM) b) Relationship Manager(RM)
c) Lead Advances (LA) d) All of these
5 In CRM, what is known as liabilities?
a) All Deposits b) All Loans
c) Loans except Home loans d) None of the above
6 CRM application is used by
a) Bank staff b) Customers
c) Call center executives d) Both a & c
7 Which is not one of the main functional areas envisaged in CRM?
a) .Sales b) Parameter Setting
c) Service d) Marketing
8 In Customer Relationship Management (CRM) portal, Customer 360 / Retail 360
is …..
a) a complete view of customers by b) List of customers having Liability /
aggregating data from various touch Asset / Mutual Fund and Insurance
points and displaying it in a single products from the Bank.
view.
c) Consolidated list of customers whose d) Information regarding customer credit
leads are in the New Leads Stage worthiness
9 In CRM, the module which has comprehensive view of complaints and service
requests raised by SBI staff or received from other channels is
a) Corporate 360 b) Retail 360
c) Services 360 d) Leads 360
10 In CRM, the module which has analysis in terms of customer information,
product and journey to offer potential business is
a) Corporate 360 b) Retail 360
c) Services 360 d) Leads 360
11 If a Customer wants to know about his/her eligibility for PAPL, what is the
format to be used to send the message?
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 a) SMS “PAPL XXXX” to 567676 where b) SMS “PAPL XXXX” to 567676 where
XXXX is last four digits of his debit XXXX is last four digits of his SB
card to know his eligibility account number to know his eligibility.
c) SMS “PAPL XXXX” to 567676 where d) Any of the above
XXXX is last four digits of his CIF
number to know his eligibility
12 What is the minimum loan amount under Pre-approved pension Loan
(PAPNL)?
a) 10000 b) 15000
c) 25000 d) 50000
13 What is the maximum age before which the pre-approved pension loan
(PAPNL) has to be completely repaid?
a) 70 years b) 72 years
c) 75 years d) 68 years
14 What is the maximum age up to which customer is eligible for Pre-approved
pension loan (PAPNL)?
a) Age should be less than 65 years b) Age should be less than 66 years
c) Age should be less than 70 years d) Age should be less than 72 years
15 What is the maximum period of loan for which pre-approved pension loan is
sanctioned?
a) 48 months b) 36 months
c) 12 months d) 60 months
16 Which of the following cheques are accepted in CDK?
a) Stale Cheque b) PDCs
c) CTS Compliant Cheques d) Any of the above
17 Which of the following is dedicated email support on YONO?
a) feedback.yono@sbi.co.in b) yonosupport@sbi.co.in
c) support.yono@sbi.co.in d) yono@sbi.co.in
18 Using which of the following options in YONO, a customer can track the status
of a compliant?
a) Accounts b) YONO Pay
c) Service request d) Get in touch
19 Which of the following services is not offered under YONO Cash?
a) Card less payments at POS b) E commerce payment
c) Cash @ POS d) Cash withdrawal at CSP
20 CDIF, KYC documents, customer photo and signature are stored in the form of
secure PDF files in _________?
a) CRM b) CBS
c) DAC d) DMS
21 Expand DMS
a) Document Management System b) Document Management Service
c) Dispute Management System d) Dispute Management Service
22 What should be the account mandate for opening digital SB through YONO?
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 a) Either or Survivor b) Former or Survivor
c) Single d) Any of the above
23 Which of the following document customer need to upload while availing PAPL
in YONO?
a) KYC documents b) Income proof
c) Photograph d) No need to upload any document.
24 What should be the minimum CIBIL score required for non-CSP customer to
be eligible for PAPL?
a) 700 b) 750
c) 650 d) 800
25 What is the validity period for the reference number generated by the customer
under YONO KRISHI for availing Agri Gold Loan?
a) 10 days b) 30 days
c) 7 days d) 15 days
26 Customer has done some data entry in YONO Krishi for Agri Gold Loan which
is incomplete. For how many days this incomplete application will be available
to the customer to resume the further process?
a) 10 days b) 30 days
c) 7 days d) 15 days
27 What is the maximum loan limit for agri gold loan in YONO Krishi?
a) Rs. 25,00,000 b) Rs. 10,00,000
c) Rs. 20,00,000 d) Rs. 2,00,000
28 Which of the following feature in YONO KRISHI will help the farmer to do the
basic banking services like bill payment, fun transfer etc?
a) Mandi b) Khata
c) Mitra d) Farm
29 Which of the following non-financial services are not available in YONO Lite
a) Transfer of SB account to another b) Virtual card generation
branch
c) For 15 G/ 15H submission d) Registration of online nomination
30 Name of the option in YONO lite using which customer can view the transaction
enquiry in offline mode
a) Mpassbook b) Offline enquiry
c) Mstatement d) mtransfer
31 What is the maximum per transaction limit under Quick transfer option in
YONO Lite?
a) 1 lakh b) 20000
c) 25000 d) 15000
32 Which of the following payment option is not available in YONO Lite?
a) Cash withdrawal using YONO Cash b) Quick Transfer without adding
beneficiary
c) UPI payment using VPA d) TEZ mode

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33 If the user selects NO in enable high security option for fund transfer in INB
then…?
a) No OTP (high security alert) is b) No OTP (high security alert) is
required for any amount of intra and required for transaction up to 10,000
interbank fund transfer cumulative in a day
c) No OTP (high security alert) is d) No OTP (high security alert) is
required for transaction up to 20,000 required for transaction up to 30,000
cumulative in a day cumulative in a day
34 Which of the following options is not available under ATM Card services in
INB?
a) Request new ATM / Debit b) Manage ATM / Debit card
card
c) Block ATM / Debit Card d) Link Debit card to another account.
35 Name the option in INB under ATM card services through which customer can
apply for personalized image-based ATM card?
a) No such option b) My card
c) Debit Card d) Special card
36 Which of the following service is not available to customer under ATM card
service in INB?
a) Reduce daily limit of the card for b) Enable/ Disable the card type of
ATM/POS/CNP transaction within ATM/POS/CNP
the permitted limits.
c) increase daily limit of the card for d) Enable /Disable international usage.
ATM/POS/CNP transaction above
the permitted limits
37 The Technology that is used in SBI FASTag to read the Tag is
a) QUORUM b) NETC
c) RFID d) NPCI
38 As per NHAI, number of categories of vehicles for the purpose of toll payment
is…?
a) 7 b) 10
c) 8 d) 15
39 Which of the following is not correct about the agencies engaged by the bank
for selling this product
a) AISECT b) NICT
c) SAVE d) PRISM
40 What is the aggregate Balance to be maintained when accounts are opened
with the help of OTP?
a) Rs 50,000/- b) Rs 1,50,000/-
c) Rs 1,00,000/- d) Rs 2,00,000/-
41 Per day transaction limit in case of third party transfer within SBI and Interbank
transfer – NEFT through YONO Lite App is ______________
a) Rs.10 lakh & Rs.50 lakh b) Rs.50 lakh & Rs.50 lakh

906
 c) Rs.50 lakh & Rs.10 lakh d) Rs.10 lakh & Rs.10 lakh
42 What is the maximum transaction limit per day on BHIM SBI Pay?
a) Rs.100000/- b) No such limit
c) Rs.200000/- d) Rs.50000/-
43 What is the requirement to install BHIM SBI PAY App
a) It can be installed on any smart b) Minimum Operating System
phone requirement is case of Android phone
is version 5.0 and above
c) Minimum Operating System d) Minimum Operating System
requirement is case of Android phone requirement is case of Android phone
is version 4.2 and above is version 6.0 and above
44 What is the mechanism available to the customer for disputed transactions?
a) Customer can raise the dispute b) Customer can contact the toll free
through the App number 1800112211 for lodging the
complaint
c) Customer can lodge the complaint d) Any of the above
through email on
support.upi@sbi.co.in
45 Which of the following payment options is not available in BHIM SBI pay?
a) QR Code b) MMID
c) Account Number and IFSC d) VPA
46 VPA stands for
a) Virtual Portal Application b) Value payment App
c) Virtual Payment Address d) Virtual Payment Application
47 BHIM SBI pay has 1-click 2-factor authentication which are:
a) App PIN & Mobile pin b) App PIN & UPI pin
c) App PIN & Transaction pin d) One-Factor Authentication only
48 Which is not the pre-requisites for BHIM SBI Pay in the following options?
a) Mobile - Android 4.2 and b) Mobile number present in the android
above handset should be registered in Bank
account
c) Valid AADHAAR No. d) Details of debit card linked to the
account required for UPI PIN set up
49 Features of Fastag are
a) Multi layered Tag b) Contains Antenna
c) Contains Chip d) All options are correct
50 What is SBI FASTag?
a) An initiative to digitize toll b) Initiative to collect Toll Tax
transactions at toll plazas electronically
c) An effort to curtail Time for payment d) All options are correct.
of Toll Tax at Plaza
51 Full KYC FASTag Account, at any given point of time, cannot have more than
______in their FASTag (prepaid) account.
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 a) Rs.10000/- b) Rs.20000/-
c) Rs.100000/- d) Rs.50000/-
52 What does QR stand for in Bharat QR?
a) Quick Receipt b) Quick Response
c) Quartely Receipt d) Quick Resolution
53 In Bharat QR, the types of QR codes available are
a) Static QR Code b) Dynamic QR Code
c) a) & b) d) SBI QR Code
54 Which of the following is not true as a pre-requisites by merchant for Bharat
QR?
a) Smart mobile phone b) Account with SBI
c) QR code scanner d) Data connection
55 Which of the following information is not stored in static QR code?
a) Merchant ID b) Merchant Name
c) Terminal ID d) Amount of Transaction
56 Which of the following is not the benefit of Bharat QR to the bank?
a) CASA balance b) It has no CAPEX and less OPEX
c) Monthly rental d) Merchant discount rate
57 Which of the following is not true about the benefits of Bharat QR to merchant?
a) Lower MDR rates compared to POS b) No commitment charges

c) No monthly service fee/ Rental d) No MDR

58 For on-boarding a merchant desiring to avail Bharat QR code facility to
collect payments, branch has to ……..
a) Advise the merchant to download b) The process of on-boarding a
and install bharat QR App on his merchant for Bharat QR is same as
mobile and do the self registration POS
c) Advise the customer to contact MAB d) Can be enabled through INB branch
department at LHO interface
59 BHIM stands for
a) Bharat Interface for Money b) Bharat Inter-transfer for money
c) Bharat Interchange for Money d) None of these
60 For transacting through BHIM Aadhaar Pay, it is _______
a) Only essential that the Merchant has b) Only essential that the Customer has
an Aadhaar linked account an Aadhaar linked account
c) Essential that both Merchant and d) Essential that the Customer
Customer have an Aadhaar linked downloads the App and makes
account. payment using the transact option
61 “BHIM-Aadhaar-SBI-2 app is for
a) Individual b) Merchant
c) Both d) None of these
62 RINB facility cannot be given on accounts with which mode of operation?
a) Either or Survivor b) Jointly Operated
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 c) Single Operation d) Any one or Survivor
63 An individual customer can register online for Retail Internet Banking,
provided he/she has a valid ______
a) SBI Credit Card b) ATM card on the account

c) PAN card d) Customer cannot apply online for

RINB
64 Please identify the single user, transaction product of CINB from the following
a) Vistaar b) GINB
c) Saral d) RINB
65 In CINB Vistaar, who creates the various corporate users (Maker, Authoriser,
Uploader etc.)
a) Regulator b) Administrator
c) Approver d) Auditor
66 Role of Regulator is mandatory in which of the following
a) Saral b) Vyapaar
c) Khata d) Vistaar
67 Registration for Khata Plus, Vyapaar, Vistaar facility is done through
a) Core Banking b) Bankmaster
c) Branch INB interface d) There is no need to register for these
products
68 What is the maximum transaction limit per day on GOOGLE PAY?
a) Rs.10000/- b) Rs.100000/-
c) No such limit d) Rs.50000/-
69 YONO LITE SBI was earlier called as
a) SBI Appkart b) State Bank Anywhere
c) YONO Cash d) SBI Fastag
70 Number of variants of CINB are ?
a) 5 b) 4
c) 3 d) 6
71 Which of the following CINB facility can be enabled through CBS ?
a) Khata Plus b) Khata
c) Vyapaar d) Vistaar
72 Which of CINB variant is compatible for Proprietary firms who need only
enquiry rights?
a) Saral b) Khata Plus
c) Khata d) Vyapaar
73 Simplified single user product of CINB which provides a number of services to
manage the accounts online with transaction rights is
a) Khata b) Saral
c) GINB d) Vyapar
74 Which facility is not available in SBI Samadhan Application?
a) A/C Statement b) Interest Certificate

909
 c) Pension slip d) A/C opening
75 SBI Quick is available for______ accounts
a) SB b) CA
c) OD/CC d) All the above
76 Maximum transaction limit for non-tax transactions through Vistaar variant
under CINB is _________
a) Rs. 1000 Crores per transaction b) Rs. 2000 Crores per transaction
c) Rs. 5000 Crores per transaction d) Rs. 500 Crores per transaction
77 Maximum transaction limit for Tax transactions through Vistaar variant under
CINB is _________
a) Rs. 10,000 crores per transaction b) Rs. 1,000 crores per transaction
c) Rs. 2,000 crores per transaction d) Rs. 5,000 crores per transaction
78 What is the limit for maximum number of transactions per day either tax or non-
tax transactions through Vistaar variant under CINB is ________
a) 10 b) 8
c) 5 d) Any number of transactions
79 What is the limit for maximum loan amount under Pre- Approved Pension Loan
(PAPNL) through YONO
a) Rs. 2,00,000/- b) Rs. 3,00,000/-
c) Rs. 5,00,000/- d) Rs. 2,50,000/-
80 Fraudster sends the email to customers to capture sensitive information like
Card Number, CVV, PIN etc. This technique is commonly known as
a) Vishing b) Smishing
c) Phishing d) Skimming
81 In the sense of ATM frauds / online frauds, what is the meaning of Cloning
a) Capturing the data from Debit b) Creation of Duplicate or Identical
Card/Credit Cards card with the information obtained
through various techniques like
Skimming etc.
c) Swapping of the ATM Card in the ATM d) Data capturing through PIN hole
Room cameras
82 If the amount was debited from customer’s account, on account of CARD
SWAPPING, what is the name of the fraud?
a) Frauds on Customers b) Frauds on Banks
c) Frauds by Insiders d) None of the above
83 ATM Jackpot means
a) Withdrawing the amount from customer b) Withdrawing the amount from Bank
account by stealing his / her credentials ATM BGL accounts by hacking the
CBS
c) Withdrawing the amount from ATM by d) ATM Jackpot is a malware, which
stealing ATM vault passwords has been developed to enable the
ATM machine to dispense cash

910
 continuously through the cash
dispenser
84 Sometimes, the fraudsters send messages through SMS to the mobile numbers
of bank customers informing that they have won a prize and provide the internet
link or mobile number to claim the money. This type frauds are known as
a) Smishing b) Vishing
c) Skimming d) Social Engineering
85 If fraudster is able to withdraw money from customers account by hacking the
card data base of customers from Banks server, then who has to bear the loss
a) Customers b) Bank
c) RBI d) Government
86 Among the following frauds, which is related to Banks only?
a) Swapping of ATM card at ATM lobby b) Stealing of customer PIN through
shoulder surfing
c) Sealing of ATM Vault passwords d) Sharing of OTP by customer
87 What is a Blockchain?
a) A distributed ledger on peer-to-peer b) A type of cryptocurrency
network
c) A centralized ledger d) An exchange
88 Expand VAN?
a) Virtual Account and Name b) Virtual Account Number
c) Visual Account Number d) None of the above
89 What is a Malware?
a) A program which is not compatible to b) Personal software which is not
the device related to the work
c) A Malicious Program which can impact d) Data which has restricted access
the confidentiality, integrity, and
availability of computer resources
90 What is phishing?
a) Shoulder surfing to steal the credentials b) A social engineering technique for
stealing the personal credentials
c) Requesting the system administrator to d) Connecting a device on the back
grant permission side of CPU which logs the
keystrokes
91 What is Spear Phishing?
a) Phishing mail targeted to different b) A tool used to detect technical
people who are not related issues in a system
professionally
c) A phishing mail targeted to employees d) A type of Denial-of-Service Attacks
of an organization

911
92 What is a Software Key logger?
a) A malicious program which encrypts b) A malicious program which counts
the data the total number of characters and
words a person type c
c) A malicious program which grabs the d) A software used to block offensive
keystrokes and identifies the mouse word
activity
93 Virtual Account Number is a
a) Series of Numeric code b) Alpha Numeric Code
c) Bank account number d) None of the above
94 Per Day limit for Intra-Bank & Inter-Bank Fund Transfer in CINB Saral and SB
Anywhere Corporate Saral is
a) Consolidated Limit of Rs.25 Lacs per b) Consolidated Limit of Rs.10 Lacs
day per day
c) Consolidated Limit of Rs.15 Lacs per d) Consolidated Limit of Rs.30 Lacs
day per day
95 As an enhanced security feature and for regulatory compliance, the registration
process for YONO mobile application is modified as
a) Device Binding b) Device and SIM Binding
c) No Binding of SIM and Device d) None of the above
96 SBI Payment Services Pvt. Ltd. (SBIPSPL), the subsidiary of SBI, have launched
a new mobile based Point of Sales (PoS) solution. The name of the solution is
a) YONO SBI Merchant Application b) Merchant POS Application
c) BHIM Merchant Application d) CRM Merchant Application
97 In YONO SBI Merchant Application, the merchant can accept Contactless
transactions (Tap to Pay) up to Rs.____
a) 1000/- b) 2000/-
c) 10000/- d) 5000/-
98 YONO SBI Merchant App can be downloaded from
a) CINB Pre login page b) Google Play store
c) Branch Assist d) SBIPSPL Assist
99 The brand name approved for BBPS application is-
a) Yonopay b) Unipay
c) BBpay d) Monipay
100 In BBPS “COU” is-
a) Customer Operating Unit b) Customer Operation Unit
c) Customer Onboarding Unit d) Customer Operational Unit

912
Q 1 2 3 4 5 6 7 8 9 10

ANS c d d d a d b a c d
Q 11 12 13 14 15 16 17 18 19 20

ANS b c a b d c a d b d

Q 21 22 23 24 25 26 27 28 29 30
ANS a c d b d b a b b a
Q 31 32 33 34 35 36 37 38 39 40
ANS c d b d b c c a d c
Q 41 42 43 44 45 46 47 48 49 50
ANS d a c d b c b c d d
Q 51 52 53 54 55 56 57 58 59 60
ANS c b c c d c d b a c

Q 61 62 63 64 65 66 67 68 69 70

ANS b b b c b d c b b d

Q 71 72 73 74 75 76 77 78 79 80
ANS b c b d d b a d d C
Q 81 82 83 84 85 86 87 88 89 90
ANS b a d a b c a b c b

Q 91 92 93 94 95 96 97 98 99 100

ANS c c b a b a d b b a

913
 KYC, AML/CFT, FATCA, CRS - 1

1 Money laundering has been defined in __________

a) Section 1A of PMLA 2002 b) Section 5B of FEMA
c) Section 3 of PMLA 2002 d) Section 5C of FEMA
2 As per section 12 of PMLA, period of maintaining a record of prescribed
transaction is __________ years from the date of transaction.
a) 5 b) 10
c) 15 d) 20
3 As per section 12 of PMLA period of retention of record in relation to KYC is
a) 5 Years from the date of relationship b) 5 Years from the date of cessation of
relationship
c) 10 Years from the date of d) 10 Years from the date of cessation of
relationship relationship
4 Which one is not a key element of KYC policy
a) Introduction of customer b) Customer acceptance policy
c) Monitoring of Transaction d) Risk Management
5 _________ is to be opened in anonymous or fictitious/benami name(s)/entity (ies).
a) Only Current Account b) Only Tiny Saving Bank Account
c) Only FCNB deposit d) None
6 Accounts of persons having relationships with banned entities such as individual
terrorists or terrorist organizations etc. are __________
a) to be opened only after controller’s b) to be opened only after RBI approval
permission
c) Not to be opened d) to be opened as non-interest-bearing
current account
7 Accounts of persons who have been convicted and are lodged in jails can be
opened, with suitable safeguards decided on case to case basis, jointly with
___________
Relative residing outside jail the Superintendent of the respective Jail
should be only in the sole name of Spouse
convict
8 Which one is not a OVD?
a) Passport b) Driving License
c) Pan Card d) Employee ID card
9 The unique customer identification code used in our bank is called________
a) Customer Information form b) Customer Information File
c) Customer Identification File d) Customer Identification form
10 For opening account of a company, which document is not a necessary
document?
a) Board Resolution b) Memorandum of Association

914
 c) Article of Association d) Pan card of Major share holder
11 Which one is not a category for classification of customer depending upon the
risk?
a) Low risk b) Medium Risk
c) High Risk d) Very High Risk

12 What is the frequency for updation of KYC in case of low risk customer
a) 2 year b) 5 year
c) 8 year d) 10 year
13 What is the frequency for updation of KYC in case of Medium risk customer
a) 2 year b) 5 year
c) 8 year d) 10 year
14 What is the frequency for updation of KYC in case of High-risk customer
a) 2 year b) 5 year
c) 8 year d) 10 year
15 Politically exposed person of foreign origin should be classified under which
risk?
a) Low risk b) Medium Risk
c) High Risk d) Very High Risk
16 As per FATCA, Reporting Financial Institutions had to register with _____ and
obtain a Global Intermediary Identification Number (GIIN).
a) CBDT b) US IRS
c) US Government d) IMF
17 India has signed Inter-Governmental Agreement (IGA) with USA on _____
a) 9th July 2016 b) 10th July 2015
c) 10th July 2016 d) 9th July 2015
18 India has also signed a multilateral agreement, called CRS on 3rd June, 2015.
What does CRS stand for?
a) Common Reporting Standard b) Customer reporting standard
c) Client reporting standard d) Common reporting scheme
19 NRI customer will be classified as _____ for KYC updation.
a) Low risk b) Medium Risk
c) High Risk d) Very High Risk
20 For compliance of FATCA, the data will be exchanged with US department ____
a) Directly by respective bank b) Through RBI
c) Through CBDT d) Through FIU - IND
21 CERSAI stands for?
a) Central Registry of Securities, Asset b) Central Registry of Securitisation, Asset
Reconstruction and Security Interest Reconstruction and Security Interest of
of India India
c) Central Registry of Securitisation, d) Common Registry of Securitisation, Asset
Asset Restructuring and Security Reconstruction and Security Interest of
Interest of India India
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22 Who will finalize the decision regarding filing of STR to FIU-IND?
a) Branch Manager b) Regional Manager
c) CGM of circle d) Principal Officer AML/CFT
23 Where does AML/CFT cell situated?
a) Corporate Centre, Mumbai b) Delhi
c) Jaipur d) Kolkatta
24 The BM to certify in the ____- that compliance of KYC/AML/CFT guidelines has
been done.
a) Annual Return b) BMMC
c) Self-Audit d) Inspection report
25 As per AML guidelines, which are the reports to be submitted for monitoring of
transactions?
a) Cash Transaction Report b) Suspicious Transaction Report
c) Non-profit organization transaction d) All of the above
report
26 Suspicion transaction report can be filed on the basis of ____
a) Manual identification of suspicious b) Automatic identification by CBS
transaction
c) Both the above d) No need to report
27 As per provisions of PML Act, any deficiency in filing the mandatory reports by
reporting entities will attract minimum penalty of Rs._________ which may go to
Rs.________per instance per day.
a) 5000/- & 50000/- b) 10000/- & 100000/-
c) 20000/- & 200000/- d) 25000/- & 100000/-
28 Account of NGO promoted by United Nations will be classified as
a) High Risk b) Low Risk
c) Medium Risk d) No Risk
29 Re-KYC of Non-Individual account holders with credit debit summations of
Rs.2.00 crores to below Rs.10.00 Crores per annum should be done in _______
a) 2 years b) 8 years
c) 10 years d) 5 years
30 Account of venture capital fund will be classified as___
a) Low risk b) High risk
c) Medium Risk d) No Risk
31 Frequency of Re-KYC for account operated by power of attorney holder is___
a) 2 years b) 5 Years
c) 8 Years d) 10 Years
32 Which of the followings is the supplier of the "Anti Money Laundering"
software?
a) M/S G.E. Capital b) TCS Limited
c) 3i Infotech d) IDRBT

916
33 Accounts of Non face to face customers can be opened by a bank on the basis
of ID & Residential proof certified by____
a) Notary Public b) Official of Indian Embassy
c) Consulate General d) All of the above
34 The abbreviation of TBML is____
a) Trade Bill Money Laundering b) Trade Based Money Laundering
c) Transaction Based Money d) Tired Business Money Laundering
Laundering
35 Who enlists the format of CTR?
a) Ministry of Finance b) Concerned Banks
c) RBI d) IBA
36 FATF located at_____
a) Mumbai b) Jaipur
c) Paris d) New York

37 Maximum punishment by the way of imprisonment of offence committed under

Money Laundering act is ____ years.
a) 3 b) 5
c) 10 d) 12
38 When did India became full time membership of FATF?
a) 1989 b) 2002
c) 2010 d) 2012
39 FATF is an initiative of____
a) BASEL committee b) G-7 Summit
c) UNO recommendation d) None of the above
40 Phantom or Ghost Shipment means___
a) Overvalue of shipment b) Creating documents for non – existent
shipment
c) Mis representing the value and price d) Shipment of defected goods
of the shipment
41 Primary responsibility of ensuring KYC compliance in respect of all
accounts maintained with BCs including review of KYC, risk categorization,
monitoring of transactions etc. will rest with the
a) CSP b) Manager/ CM (FI) posted at RBO
c) Home (Parent) Branch d) CM / AGM (FI) posted at AO
42 The ___is authorized for deciding on whitelisting of accounts for STR alert
generation including change in time parameter.
a) Authorised officer of RBI b) GM & Principal Officer (AML/CFT)
c) Branch Manager of SMGS IV/ AGM d) DGM (B & O)
43 Banks are required to file the electronic copy of the Customer’s KYC records/data
(Customer information, Photograph, Signature, KYC Documents) with the Central
KYC Records registry (CKYCR) within days after the
commencement of an account-based relationship with a customer.
917
 a) 2 days b) 7 days
c) 3 days d) Next day itself
44 Cross Border Wire Transaction Reports (CBWTR), the value of more than ______
rupees or its equivalent in foreign currency where either the origin or destination
of fund is in India to be reported.
a) Rs. 1,00,000 /- b) Rs. 10,00,000 /-
c) Rs. 5,00,000 /- d) Rs. 50,000 /=

45 Name the Customer Identification Process recently notified by undertaking

consent based audio-visual interaction with the customer to complete
Customer Due Diligence (CDD) procedure
a) V-CIP b) V- KYC
c) V-CIF d) V-CDD

46 Which one of the following is not one of the Red Flag Indicators (RFI) to detect
TBML in regard to customer profile?
a) The customer avoids or does not co- b) The customer is overly keen to waive
operate in CDD procedures discrepancies
c) The transaction commensurate with d) The customer significantly deviates from
known customer profile, structure or his historical pattern of trade activity
business
47 Where the client is a trust, the Bank, shall identify the beneficial owners of the
client and take reasonable measures to verify the identity of such persons,
through the identity of the settler of the trust, the trustee, the protector, the
beneficiaries with …... or more interest in the trust
a) 25 b) 15
c) 10 d) 5
48 Information accompanying all domestic wire transfers of Rs. ______ and above
must include complete originator information
a) 50,000 /- b) 1,00,000 /-
c) 5,00,000 /- d) USD 50,000
49 The FIU-IND reports to _____
a) RBI b) FIU-IND
c) Finance Minister d) Economic Intelligence Council(EIC)
50 Which of the following is the supplier of the "Anti Money Laundering" software?
a) M/s G.E. Capital b) TCS
c) 3i Infotech d) RBI

918
Q 1 2 3 4 5 6 7 8 9 10

ANS C A B A D C B D B D

Q 11 12 13 14 15 16 17 18 19 20

ANS D D C A C B D A C C

Q 21 22 23 24 25 26 27 28 29 30

ANS B B C B D C B B B C

Q 31 32 33 34 35 36 37 38 39 40

ANS A C D B C D C C B B

Q 41 42 43 44 45 46 47 48 49 50

ANS C B C B A C B A D C

919
 KYC, AML/CFT, FATCA, CRS – 2

1 Obligations on the Bank are placed under Section of the Prevention

of Money Laundering Act, 2002
a) Section 3 b) Section 7

c) Section 9 d) Section 12

2 Which of the following obligations on the Bank placed by the Prevention of

Money Laundering Act, 2002 are wrong

a) maintaining a record of prescribed b) furnishing information of prescribed

transactions transactions to the specified
authority

c) verifying and maintaining records d) preserving records in respect of

of the identity of its clients and prescribed transactions and
identifying the beneficial owners, if furnishing information to the
any, of such clients specified authority for a period of ten
years from the date of transactions,
and for eight years in respect of
identity of its clients and beneficial
owners after the

cessation of relationship.

3 For customer identification in a partnership firm, certified copy of which of

the following documents is not required
a) Registration Certificate b) Certificate of Incorporation

c) Partnership deed d) An officially valid document in

respect of the person holding

power of attorney to transact on its

behalf.

4 Customer Profile of individual account holders should be compiled

covering the following information in the account opening forms:

(i) Family details

(ii) Source of funds
(iii) Monthly Income & Annual turnover (in the case of business)
(iv) Date of Birth & Educational qualification
(v) Assets (approx. value) & Details of existing credit facilities, if any
a) i, ii, iii, iv b) i, iii, v, iv

920
 c) i, ii, iii, v, iv d) v, iii, i, ii

5 RBI guidelines on KYC / AML CFT measures stipulate that, transactions of

suspicious nature should be monitored and should be filed as Subjective
STRs with the____

a) Finance Intellectual Unit- India b) Financial Intelligence Unit – India

c) Financial Inclusion Unit- India d) Financial Tech Unit- India

6 Under FATCA, the term “Financial Institution” means

a) a Depository Institution or a b) a Specified Insurance Company

Custodial Institution
c) an Investment Entity d) All of the above

7 Which of the following is NOT true about Phishing

a) it is a social engineering technique b) used for contacting individuals or

businesses to obtain non-

banking/non-financial information

c) messages are sent to general d) information is usually used to commit

audience /specific person that look identity theft or financial fraud.
to be sent by a trustworthy source

8 Scrutiny of unusual Cash transactions up to Rs.2,00,000/- & Transfer

transactions up to Rs. 5,00,000/- should be done by at branches/offices
on a daily basis

a) Senior Assistant for transactions b) Special Assistant for transactions

handled by him handled by him

c) Senior Special Assistant for d) Manager of Division /Services

transactions handled by him. Manager / Branch Manager

9 All accounts where STRs have been filed with FIU-INDIA are to be assigned

a) Low Risk b) Medium Risk

c) High Risk d) Risk category need not change

10 Which of the following documents submitted by Persons of Indian Origin

(PIO) and Overseas Citizen of India (OCI) is not acceptable for opening NRO
/ NRE / FCNB (B) accounts?

921
 a) Copy of PIO/OCI Card issued by b) Copy of the TIN issued by the
Govt. of India. country of residence

c) Copy of marriage certificate d) Copy of relevant pages of passport

establishing the spouse as of parents or grandparents,
NRI/Indian origin
establishing them as NRI/Indian
origin

11 Which of the following are not true in respect of Cash Transactions of Rs. 10
lacs and above?

a) Cash withdrawals and deposits for b) For determining “integrally

Rs.10.00 lacs and above to be connected transactions” all accounts
recorded and reported to of the same customer should be
controlling office every month. taken into account.

c) Bank generates monthly CTRs d) Branches extract relevant CTRs

through AMLOCK software at provided by AML/CFT Department,
AML/CFT Cell at Belapur in respect and preserve hard and soft copies
of all such transactions
for perusal by internal / external
auditors.

12 The Report regarding US Reportable persons & Other Reportable

persons to CBDT have to be signed by____
a) MD (Compliance & Risk) b) CGM (Compliance & Risk)

c) Principal Officer d) To be furnished electronically only

13 For restricting opening money mule accounts, KYC/AML/CFT Policy based

on guidelines issued by RBI which stipulates:

a) Dispose off records b) Monitoring of transactions at various

levels on the basis of threshold limit
fixed by the branch.
c) ROC search d) None of these

14 The foreign NGOs, which have been put under ‘Prior approval category
(PAC)’, can receive foreign contribution only after taking prior permission
from
a) IRDA b) Reserve Bank of India

c) SEBI d) Ministry of Home Affairs,

Government of India.

15 After the launch of National Voters’ Service Portal, genuineness of a voter ID

card can be ascertained by visiting

a) http://electoralsearch.in/. b) http://election.ind

922
 c) http://voterid.co.in d) http://voteforindia.co.in

16 UAPA means

a) Unusual Activities Prevention Act b) Unsuspectful Activities Protection

Act

c) Unlawful Activities Prevention Act d) Unauthorised Activities Prevention

Act

17 An account reportable to a country or territory outside India other than US is

termed as
a) FATCA b) Other Reportable Account (CRS)
c) Non Reportable Account d) None of the above

18 Which of the following statements are wrong in the process of closing a non-
KYC compliant account?

a) Give due notice of three months to b) Impose ‘partial freezing’ by allowing

comply with KYC requirements all credits and disallowing all debits
followed by a reminder giving a with the freedom to close the
further period of three months. accounts.

c) If still KYC non-compliant after d) Bank to close the account of such

twelve months of imposing ‘partial customers after issuing due notice to
freezing’ the accounts should be the customer explaining the

made inoperative. reasons for taking such a decision.

19 Suspicious transaction means a transaction whether or not made in cash

which, to a person acting in good faith –

a) gives rise to a reasonable ground b) appears to make in circumstances

of suspicion that it may involve the of unusual or unjustified
proceeds of crime complexity
c) a or b d) a & b

20 KYC compliance and fraud prevention day observes on

a) 1st Aug b) 1st Oct

c) 1st Dec d) 1st Sept

923
21 The decision to open an account for a Politically Exposed Person (PEP) is
taken by an official not below the grade of
a) JMGS b) MMGS

c) Senior Management Grade (SMG). d) Any of the above

22 Cross Border Wire Transfer Report (CBWTRs) has to be submitted to FIU

IND when the transfer value is Rs. _ in foreign currency

a) more than five lakh rupees or its b) more than one lakh rupees or its
equivalent equivalent

c) more than ten lakh rupees or its d) irrespective of amount

equivalent

23 HNI Non-Individual Customers having aggregate credit balance =< Rs

500.00 lacs to be categorised as
a) Low Risk b) Medium Risk
c) High Risk d) No separate risk category for HNIs

24 Unauthorized intrusion into a computer or a network is called

a) Phishing b) Vishing

c) Hacking d) Smurfing

25 Threshold in case of business (But not exceeding Rs. 10.00 Lacs) in

CBS

a) Three Month’s Turnover b) Two Month’s Turnover

c) One Month’s Turnover d) One Year Turnover

26 Under FATCA, what is a FFI?

a) Foreign Financial Institutions b) Foreign Financial Intermediary

c) Financial Funding Institutions d) Financial Funding Intermediary

27 Preservation of account opening forms and KYC documents of clients

should be for___
a) Five years from transaction date b) Ten years from transaction date

c) Five years after cessation of d) Ten years after cessation of

relationship with clients relationship with clients

924
28 NPA Loan Accounts are classified as
a) Low Risk b) High Risk
c) Medium Risk d) Depends on Risk Grade

29 The Financial Intelligence Unit-India (FIU – IND) was set up by the

Government of India in___
a) 2003 b) 2002
c) 2004 d) 1997

30 Which of the following reports to be submitted to FIU-IND, periodicity is NOT

in Monthly intervals
a) Cash Transactions Reports b) Counterfeit Currency Reports
c) Cross Border Wire Transfer Report d) Suspicious Transactions Reports

31 In case of transactions carried out by walk-in customers, customer’s identity

and address should be verified where the amount of transaction equals or
exceeds
a) 20000 b) 50000

c) 100000 d) Not required

32 While opening account of Partnership account, COS is taken & for HUF
account COS ____ is taken
a) COS 38, COS 39 b) COS 39, COS 38
c) COS 38, COS 37 d) COS 37, COS 38

33 The NRI student who is pursuing education in India, should submit valid
address proof within days of opening the account.
a) 7 days b) 15 days
c) 30 days d) 6 months

34 Simplified KYC guidelines are applicable for FPIs. What is the full form of FPI?

a) Foreign pursuing Indians b) Foreign portfolio Indians

c) Foreign Portfolio Investors d) Foreign Portfolio Investment

35 The list of high-risk countries is identified by Financial Action Task force and
updated
a) Once in a year b) Twice in a year

925
 c) Thrice in a year d) Quarterly once

36 Find the odd man out in the high-risk category list.

a) Non face-to-face customers b) Firms with sleeping partners

c) Companies having close family d) Stock brokers

shareholding

37 The principal officer of the Bank designated for monitoring of anti-money

laundering transactions is
a) General Manager (Network) b) Chief General Manager of the circle
c) Dy. General Manager (AML/CFT) d) General Manager (AML/CFT)

38 Who is MLRO in our Bank for branches in NBG and RBG

a) GM of the network b) DGM & CFO/CCFO in Circles

c) CGM of the circle d) AGM of the RBO

39 Students of nationality will need prior approval of the RBI for opening
the account.
a) Nigeria b) Srilanka

c) Pakistan d) Afghanistan

40 Purposes proposed to be served by the KYC, AML & CFT Policy of the Bank
are

a) To facilitate monitoring of b) To file Counterfeit Currency Reports

transactions in Non-Profit in cases of detection of counterfeit
Organisations (NPO) and file NPO currency.

Transactions Reports

c) To enable the Bank to d) To comply with the Banking

know/understand the customers Regulations Act, Companies Act and
and their financial dealings better CBDT regulatory guidelines.
which, in turn, would help the

Bank to manage risks prudently

41 The act of breaking a large financial transaction into a series of smaller

transactions to avoid scrutiny by regulators & law enforcement agencies.
a) Smurfing b) Vishing
c) Layering d) Integration

926
42 In which stage of Anti Money Laundering, the money launderer introduces
illegal profits into the financial system by breaking up large amounts of cash
into less conspicuous smaller sums that are then deposited directly into a
bank account

a) Placement b) Structuring
c) Layering d) Integration

43 The process by which criminals disguise the original ownership and control
of the proceeds of criminal conduct by making such proceeds appear to have
derived from a legitimate source.

a) Anti-Money Laundering b) Money Laundering

c) Prevention of Terrorist Activities d) Combating financing of Terrorism

44 In this stage of money laundering, the launderer simply wires the funds
through a series of accounts at various banks across the globe often
disguising them payments for goods or services, thus giving them a
legitimate appearance.

a) Placement b) Structuring
c) Layering d) Integration

45 In this stage of money laundering, the launderer invests the funds into real
estate, luxury assets, or business ventures etc.
a) Placement b) Structuring

c) Layering d) Integration

46 Which of the following is NOT true about Money Laundering / Financing of

Terrorism

a) In case of money laundering, the b) In case of terrorist financing funds

funds are always of illicit origin can originate from both legal and
illicit sources.

c) The primary goal of d) The goal of individuals involved in

individuals/entities in financing of financing of terrorism is to conceal
terrorism is to conceal both the the sources of money

financing and nature of the

financed activity.

47 Beneficial Owner means

a) an individual who ultimately owns b) the person on whose behalf a

or controls a client of a reporting transaction is being conducted

927
 entity

c) a person who exercises ultimate d) All of the above

effective control over a juridical

person.

48 The competent authority to permit closure of partially frozen Inoperative

accounts shall be the Branch Head not below the rank of ____.
a) Any BM irrespective of the scale b) MMGS III
c) SMGS IV d) Branch itself cannot close the A/c

49 Under Beneficial Owner, in a partnership firm, the beneficial owner is the

natural person or one or more juridical person, has ownership of / entitlement
to

a) more than forty-nine percent of b) more than twenty-five percent of

capital or profits of the partnership capital or profits of the partnership

c) more than fifty percent of capital d) more than fifteen percent of

or profits of the partnership capital or profits of the partnership

50 Non-Profit Organization means any entity or organisation that is registered

a) as a company registered under b) as a society under the Societies

Registration Act, 1860
Section 8 of the Companies
Act, 2013

c) As a trust d) Any of the above

51 Politically exposed persons are individuals who are

i. Heads of States or of Governments,

ii. senior government/judicial/military officers,
iii. individuals/entities donated for political parties
iv. senior executives of state-owned corporations,
v. senior politicians/important political party officials
vi. members of regional political party
vii. close relatives of PEPs (for the purpose of risk categorisation)
a) i, ii, iii, iv. v, vii b) i, ii, iv. vi, vii

c) i, ii, iv, v, vii d) i, iii, iv. vi, vii

52 An entity that has no active business and usually exists only in name as
vehicle for another company’s business operations is called___
a) Shell company b) Hoax company

928
 c) Hawala company d) Benami company

53 has developed a series of 40 recommendations that are recognized

as the International Standard for Combating of Money Laundering and the
Financing of Terrorism and Proliferation of Weapons of Mass Destruction.
a) Financial Action Task Force b) The Wolfsberg Group
c) United Nations d) BASEL committee

54 The FATF Recommendations were revised most recently in _

a) 1996 b) 2001

c) 2003 d) 2012

55 India has also signed a multilateral agreement on to automatically

exchange information under the Common Reporting Standard (CRS)
a) 23rd June, 2015 b) 3rd July, 2015
c) 3rd June, 2015 d) 23rd July, 2015

56 _ FSRBs have been established for the purpose of disseminating

international standards of FATF throughout the world.
a) Nine b) Ten
c) Five d) Three

57 Common Reporting Standard (CRS), formally referred to as the Standard for

a) Automatic Exchange of Financial b) Automatic Exchange of Foreign

Account Information Account Information

c) Automatic Exchange of Formal d) Automatic Exchange of Foreign

Assets Information Assets Information

58 The united body of 155 Financial Intelligence Units across the world

a) Financial Action Task Force b) The Wolfsberg Group

c) The Egmont Group d) BASEL committee

59 Which of the following is NOT true about Prevention of Money Laundering

Act, 2002

929
 a) impose obligation on banking b) provide for confiscation of property
companies, financial institutions derived from or involved in money
and intermediaries laundering

c) came into force with effect from d) an Act of Parliament

July 1, 2004.

60 Which of the following is NOT true about UAPA

a) It criminalizes terrorist acts and b) It provides for attachment of and

raising of funds for terrorist acts. seizure of properties connected with
terrorist activities or

organisations.

c) The provisions of the act are not d) The Act was amended in 2013 to
applicable if funds are legitimate make it more effective and meet

the FATF standards.

61 Which of the following is NOT true about Financial Intelligence Unit-India

a) responsible for receiving, b) responsible for coordinating and

processing, analyzing and strengthening efforts of national and
disseminating information relating international intelligence,
to suspect financial transactions. investigation and enforcement

agencies

c) is a regulatory authority set up by d) reports to the Economic

the Government of India
Intelligence Council (EIC) headed
by the Finance Minister.

62 The nodal agency for submission of data by Financial Institutions under

FATCA/CRS in India is

a) CBDT b) FIU-IND

c) Department of Financial Services, d) RBI

Ministry of Finance

63 Under Beneficial Owner, the term "Controlling ownership interest" means

ownership of or entitlement to

a) more than fifty percent of shares or b) more than seventy-five percent of

capital or profits of the company
shares or capital or profits of the
company

930
 c) more than twenty-five percent of d) more than forty-nine percent of
shares or capital or profits of the
shares or capital or profits of the company
company

64 Anti-money laundering guidelines for Private Banking are given by

a) Financial Action Task Force b) The Wolfsberg Group

c) United Nations d) BASEL committee

65 State Bank of India has registered with US IRS on___

a) 23rd December 2014 b) 23rd November 2014

c) 3rd December 2014 d) 3rd December 2015

66 Which of the following is NOT true about Hacking

a) hacker may alter system or b) hackers employ a variety of

security features techniques like DoS, Malware etc

c) hacking includes attacks on social d) hacking does not include spoofing

media attacks

67 Once any Financial Institution is treated as NPFI, a withholding tax would

be applicable for all payments made through such institutions.

a) 30% b) 50%

c) 70% d) 25%

68 _ is self-replicating programs that spread by inserting copies of

themselves into other executable code files or documents
a) Spoofing b) Root Kit

c) Viruses d) Denial of Service

69 FATCA is effective from . All accounts before this date are termed
as pre-existing accounts.
a) July 01, 2015. b) July 01, 2014.
c) July 01, 2016. d) January 01, 2015.

70 Which of the following is NOT true about Pharming

a) a tactic used by criminals to b) It tries to trick the user into

redirect a legitimate web site to a clicking a URL

fraudulent site.

931
 c) uses malicious code to redirect the d) without his/her consent or
user to the criminal’s site knowledge, making it more difficult

to detect.

71 Which of the following is NOT true about Vishing?

a) It is t h e telephonic version of b) criminals attempt to extract

phishing. information through a e-mail

c) uses social engineering techniques d) customer is tricked to provide

information on their financial

accounts.

72 Smishing is a form of phishing that uses____

a) e-mail messages b) cell phone text messages

c) phone calls d) web site

73 Which of the following is NOT true about modes of hacking?

a) Packet sniffer: applications that b) Spoofing: websites which falsify

capture data packets in transit data by mimicking legitimate sites,

c) Root kit: a set of programs to d) Vulnerability scanner: the process of

subvert control of an operating recovering passwords from data
system

74 Method used by thieves to capture information from a cardholder to make

fraudulent transactions is ____
a) Skimming b) Pharming
c) Surfing d) Smurfing

75 Which of the following is a technique used by criminals for skimming of

card?

a) Colluding with staff at retail b) Inserting pads, films, camera or

merchant points to obtain other devices in the ATM to obtain

customer PIN customer PIN
c) Shoulder Surfing Customer PIN d) All of the above

76 Directors of a company move the assets from one limited company to another
to ‘secure’ the benefits of their business and avoid the liabilities, it is called
as ____

932
 a) Asset stripping b) Teeming and lading
c) Phoenixing d) Colluding

77 Parameters for Risk-Based Transaction Monitoring (RBTM) are issued by__

a) Indian Banks' Association. b) Reserve Bank of India

c) FIU-IND d) Ministry of Finance, Govt of India

78 Which of the following is NOT true about Name Screening?

a) is part of Customer Acceptance b) to weed out those persons or

Policy entities already on board

c) the Financial Institution increases d) person or entity is screened against

the risk of misuse of its channels lists circulated by National and
and facilities by unscrupulous International Organizations,
elements Regulators, Agencies

79 Name Screening - scrubbing of entire customer base against the negative

lists is done by the AML/CFT Department at___
a) Monthly intervals b) Quarterly intervals

c) Half Yearly intervals d) Yearly intervals

80 Video based Customer Identification Process (V-CIP) can be accepted for the
customer those having___

a) Aadhar Card b) PAN card

c) Both Aadhar card and PAN card d) Any of the OVD

81 Under FATCA, Broker-dealers, clearing organizations, trust companies

come under___
a) Depository Institution b) Custodial Institution
c) Investment Entity d) Insurance Company.

82 HNI Individual Customers having aggregate credit balance > Rs 1.50 Crores
& =< Rs 3.00 Crores to be categorized as___

a) Low Risk b) Medium Risk

c) High Risk d) No separate risk category for HNIs

83 Which of the following determine the customer risk categorization?

a) Occupation b) Social Financial Status

c) Business Activity d) All of the above

933
84 In the context of FATCA, what is NPFI

a) Non-Participating Financial b) Non-Participatory Financial

Institution Institution

c) Newly Participating Financial d) Non-Proliferating Financial

Institution Institution

85 Risk categorization of Salary Package a/cs of all Govt Depts are

a) Low b) Medium

c) High d) None of the above

86 URL for reporting Online Reporting of instances of detection of

counterfeit currency notes by designed officials

a) https://ccr.sbi.co.in b) https://ccr.statebanktimes.in

c) https:// counterfeit.co.in d) https:// currency.sbi.in

87 FSRB stands for____

a) Financial system Regional Bodies b) FATF-Style Regional Bodies

c) FATF Standard d) FATF Standard Regional Board

Regional Bodies

88 serves as a back door in a computer system to allow an intruder to

gain access to the system later
a) Malware b) Trojan horse

c) Key Loggers d) Virus

89 If the matter related to a suspicious transaction is pending in a court, the

relevant records should be retained for from the date of final verdict of
the court.
a) 2 years b) 5 years

c) 10 years d) No specific guidelines

90 Time intervals for periodic updation of KYC for existing high-risk customers
a) 2 b) 6

c) 8 d) 10

934
 ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

ANS D D B C B D B C C B
Q 11 12 13 14 15 16 17 18 19 20

ANS A A B D A C B C D A
Q 21 22 23 24 25 26 27 28 29 30

ANS C A A C C A C B C D
Q 31 32 33 34 35 36 37 38 39 40
ANS B D C C C D D B C D

Q 41 42 43 44 45 46 47 48 49 50

ANS A A B C D D D C D D

Q 51 52 53 54 55 56 57 58 59 60

ANS C A A D C A A C C C

Q 61 62 63 64 65 66 67 68 69 70

ANS C A C B A D A C B B
Q 71 72 73 74 75 76 77 78 79 80

ANS B B D A D B A C C A
Q 81 82 83 84 85 86 87 88 89 90
ANS B B D A A B B B B A

935
 CASH DEPARTMENT

1 The size of the new 2000 RUPEE note is …………….?

a) 66mm x 150mm b) 66mm x 166mm

c) 72mm x 160mm d) 72mm x 150 mm

2 The size of the new 500 RUPEE note is …………….?
a) 66mm x 150mm b) 66mm x 166mm
c) 72mm x 160mm d) 72mm x 150 mm
3 How many bleed lines are there on new 500 rupee note?

a) 3 b) 5
c) 7 d) 9
4 How many bleed lines are there on new 2000 rupee note?
a) 3 b) 5
c) 7 d) 9
5 Specified Bank Notes (Cessation of Liabilities) Ordinance 2016 In terms of
Section 5 of the Ordinance, from December 31, 2016 no person shall knowingly
or voluntarily hold, transfer or receive any specified banknotes. After the
expiry of grace period, holding of not more than ………. notes in total,
irrespective of denomination

a) 5 b) 10
c) 25 d) 50
6 Specified Bank Notes (Cessation of Liabilities) Ordinance 2016 In terms of
Section 5 of the Ordinance, from December 31, 2016 no person shall knowingly
or voluntarily hold, transfer or receive any specified banknotes. After the
expiry of grace period, holding of not more than ……. notes for the purpose of
study/ research/ numismatics is permitted

a) 5 b) 10
c) 25 d) 50
7 Counterfeit Currency Notes detected and impounded at the branch are
required to be reported on real-time basis directly to corporate centre and its
effective monitoring the application can be accessed at which URL?

a) https://ccr.sbi.co.in b) https://ccr.statebanktimes.in

c) https:// sbi.co.in/ccr d) https://statebanktimes.in/ccr

8 Manual preparation and submission of the counterfeit currency reporting has
been discontinued w.e.f which date?

a) 01.04.2017 b) 01.01.2017

c) 01.10.2016 d) 08.11.2016

936
9 The currency chests should invariably report all transactions through eKuber
on the same day by …… PM by uploading data through the Secured Website
to their respective link offices.?

a) 7 b) 8
c) 9 d) 10
10 Currency held by non-chest branches of SBI is the property of ?
a) Govt of India b) SBI

c) RBI d) None of these

11 Strong Room fitness certificate has to be renewed?
a) Once in two months b) A quarter

c) Once in a year d) Six months

12 Balances in Currency Transactions account are transferred to FSLO on last

working day of?

a) April & October b) April & September

c) February & August d) January & July

13 Excess cash found in the cash balance of a SWO has to be credited to
a) Suspense account b) Charges account

c) Sundry Deposit account d) Commission account

14 The deposit and withdrawal of Cash Box in/from Vault under IBCH will be
entered in?

a) Cash Receipt / Delivery Register b) Cash officer’s jotting book

c) Cash box receipt Delivery Register d) None of these

15 Cash held in the cash box overnight, will be treated as?

a) Sundry balance b) Petty cash balance

c) Branch Cash balance d) None of these

16 Specific gravity of pure gold is
a) 18.1 b) 20.1

c) 19.3 d) 18.3
17 Cash officer is responsible for ______ while sanctioning gold loan
a) Purity b) Weight

c) Value d) All the above

18 Gold ornaments of deceased borrower pending their settlement will have to

be kept in
937
 a) Joint custody b) Safe Deposit Articles

c) In a separate locker d) None of these

19 Vault Register will always be kept in?
a) Accountant’s Hand Safe b) Strong RoomRoom
b) Strong
c) With Cash Officer d) None of these
20 Minimum Transaction that can be made to currency chest?
a) Rs 1 lakh & multiples of Rs 5 lakh b) Rs 1 lakh & in multiples of
only Rs 50,000 there of

c) Rs 50,000 & multiples of Rs 50000 d) None of these

21 Currency Chest is the property of?

a) Government of India b) SBI

c) Reserve Bank of India d) None of the above

22 Small Coin Depot consists of ?
a) All coins b) Coins upto Rs. 1/-

c) Coins below Re. 1/- d) Coins upto Rs. 5/-

23 Small Coin Depot (SCD) is the property of?
a) SBI b) RBI

c) Govt. of India d) None of these

24 Rs 1/- notes are issued by?
a) Govt of India b) RBI

c) SBI d) None of these

25 Min. withdrawal / deposits in SCD?

a) Rs 100/- & multiples of Rs 50/- b) Rs 50/- & multiples of Rs 50/-

c) Rs 1000/- & multiples of 100/- d) Rs 500/- & multiples of Rs 50

26 Small coin depot transactions are to be reported to ?

a) Zonal Office b) RBI

c) FSLO d) None of these

27 Clean Note Policy (CNP) is governed by ?

a) Sec 35 of Indian Currency Act b) Sec 35 A of B.R Act

c) Sec 35 A of RBI Act d) None of these

28 Relationship between RBI & SBI in case of currency chests is
a) Principal & Agent b) Bailor & Bailee

c) Agent & Principal d) None of these

29 Person preparing the note packet is responsible for both quality & quantity
upto?
a) Rs 200/- b) Rs 100/-

938
 c) Rs 1000/- d) Rs 500/-
30 IBCH overnight cash retention limit is?
a) Rs 2 lakh b) Rs 0.50 lakh
c) Rs 1 lakh d) Rs 5 lakh
31 In Branch Cash Handling (IBCH) is applicable to_____?
a) Metro branches b) Non currency chest branches

c) All branches d) Currency chest branches

32 For Rs 500/- & Rs 2000/- person preparing the note packet is responsible for?
a) Quantity only b) Quality only

c) Both quality & quantity d) None of these

33 Balances in Currency Chest have to be verified by an official other than the
joint custodians once in _____?

a) Once in two months b) Half year

c) Once in three months d) Once in a year

34 The difference between day’s total withdrawals and day’s total deposits in
the Chest is _____?
a) Treasury Transfer b) Cash Transfer

c) Currency Transfer d) None of these

35 The certificate of chest balance as on ____ is submitted to RBI by the Chest
branch?

a) 31st March b) 31st May

c) 31st July d) 31st Dec

36 In a soiled note remittance to RBI if more than ___% of notes is found to be
issuable notes, then entire remittance will be returned by RBI at sending
bank’s cost?
a) 10 b) 5

c) 20 d) None of these
37 Name the of the Register to record exchange of Cash between SWOs
in Cash Dept.?
a) Cash Transfer Register b) Cash Receipts Delivery Register

c) Cash Officer’s Jotting Book d) Cash Transaction Register

38 What type of insurance cover is obtained for Cash Remittances?
a) Comprehensive insurance cover b) Fidelity Insurance cover

c) Transit Insurance cover d) None of these

39 As per the latest instructions of the RBI, FIR has to be lodged in case of Fake
Currency notes, if the no. of notes is ____?

a) 4 b) 5 or more

939
 c) 3 d) 2

40 Days net Withdrawal/ Deposit to reported to FSLO through ?

a) eKuber b) IFAMS

c) Fax d) email
41 Verification of Currency Chest balances by officials other than Joint
custodian is done at___________ intervals?

a) Once in a month b) Once in 2 months

c) No periodicity stipulated d) Once in a quarter

42 Surprise verification of Critical Currency Chests is made by LHO at ?

a) Monthly Interval b) Quarterly Interval

c) Half Yearly Interval d) No periodicity stipulated

43 Which of the following is true when remittance is sent from one currency
chest to another currency chest?

a) Branch Cash Balance is credited, b) Branch Cash Balance is debited,

and RBI’s Account is debited and RBI’s Account is credited

c) No Entry is passed d) None of these

44 Charges towards police escorts, transport etc. for chest to chest remittances
of treasure is?

a) Borne by Bank b) Paid by RBI

c) Paid initially by Bank, then d) None of these

reimbursed by RBI

45 Repository is part of _____?

a) Branch Cash Balance b) Currency Chest

c) Small Coin Depot d) None of these

46 Printing & Circulation of forged Indian currency notes is an offence u/s ?

a) Sec 292 of Criminal Procedure code b) Sec 489A to 489E of Indian Penal
code
c) Both d) None
47 Forged Note Vigilance Cell (FNVC) of the bank is required to submit data on
counterfeit notes detected during a month on all India basis by email to
____before the end of succeeding month
a) RBI Issue Office b) FIU-IND, New Delhi

c) National Crime Records Bureau, d) Currency Management Dept. of

New Delhi RBI, Mumbai

940
48 Fidelity insurance cover for single window operator is obtained for?

a) Rs 0.50 Lakh b) Rs 1 Lakh

c) Rs 5 lakh d) Rs 10 Lakh
49 Recounting of note packets is not required for denominations upto?
a) Rs 50/- b) 200/-

c) Rs 500/- d) All note packets to be recounted

50 Who will be responsible for tampered bundles / note packets kept in the
vault?

a) Cash-in-Charge alone b) Joint Custodian of Vault

c) Accountant alone d) Branch Head alone

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

ANS B A B C B C B C C B

Q 11 12 13 14 15 16 17 18 19 20

ANS C A C C C C D B B B

Q 21 22 23 24 25 26 27 28 29 30

ANS C C C A A C C A A B

Q 31 32 33 34 35 36 37 38 39 40

ANS C A A C B A B C B A

Q 41 42 43 44 45 46 47 48 49 50

ANS B B C C B B D C B B

941
 SYSTEMS & PROCEDURES - I

1 The security arrangements at the branches and other entities of the Bank
as applicable are available
a) Branch Dossier b) Aide Memoire
c) Branch Document Register d) Branch Security Register
2 Which of the following is not an activity related to Preventive Vigilance
a) Replying to inspection and audit b) Balancing and checking of books
reports
c) Training of staff d) Addressing customer complaints
pertaining to deficiency in customer
service
3 On change of incumbency, the Handing-over and Taking-over of charge letter
is to be done on form ______
a) COS-330 b) COS-335
c) COS-331 d) COS-332
4 On change of incumbency, the relieving Branch Manager’s Certificate is
on form _______
a) COS-331 b) COS-333
c) COS-332 d) COS-334
5 The Licences/Retention limit/leases / title deeds / receipts/ Insurance and
Agreements are to be entered in Section __________ of Branch Documents
Register
a) Section I b) Section II
c) Section III d) Section IV
6 In Branch Documents Register, which of the following items pertaining to
insurance is not to be entered under E-5: ‘Insurance’ folio
a) Bank’s Building, Furniture & b) Cash-in-transit
Electrical Installations
c) Fidelity Insurance cover for Teller d) Bank’s retainer vehicle
7 Which of the following items should not be entered in Branch Document
Register
a) Lease / Title Deeds of the Branch b) Safe deposit receipt in respect of
Premises branch duplicate keys.
c) Documents relating to law suits / d) Full details of Security Forms
frauds. received from CSD
8 Rule____ to Rule ____of the SBI Officers’ Service Rules(OSR ), 1992 lay
down the provisions /instructions relating to compliance of the Conduct /
Ethics Rules by the Officers.
a) Rule 50 to Rule 65 b) Rule 50 to Rule 67
c) Rule 55 to Rule 65 d) Rule 67 to Rule 69
9 Rule____ to Rule ____ of the SBI Officers’ Service Rules, 1992 deal with the
penalties / disciplinary action against the Official for any violation on his / her
part of the above Rules and also the mechanism prescribed for appeal
against such punishment / disciplinary action
a) Rule 50 to Rule 65 b) Rule 50 to Rule 67
c) Rule 55 to Rule 65 d) Rule 67 to Rule 69
942
10 Prohibition of sexual harassment of working women is covered under
Rule_______ of the SBI Officers’ Service Rules, 1992

a) Rule 50 (5) b) Rule 50 (10)

c) Rule 50 (15) d) Rule 50 (20)
11 Which of the following is/are considered as Minor penalty/ies as per Rule 67
of SBI Officers’ Service Rules, 1992
a) Censure b) Withholding of increments of pay
with or without cumulative effect;
c) withholding of promotion d) All of the above
12 Which of the following is/are considered as Major penalty/ies as per
Rule 67 of SBI Officers’ Service Rules, 1992
a) reduction to a lower grade or post b) compulsory retirement
c) dismissal d) All of the above
13 Which of the following is the objective of the Policy on Sexual Harassment of
women at workplace (Prevention, Prohibition and Redressal), 2013 is to
provide a safe, secure and enabling environment for working women
a) Protecting women against sexual b) Preventing instances of sexual
harassment at the workplace harassment at the workplace
c) Providing redressal of complaints of d) All of the above
sexual harassment at the workplace
14 Which of the following is/are permitted to issue Promissory Notes & Bill
of Exchange payable to Bearer
a) Any individual, Partnership, b) Govt. of India
company, etc
c) RBI d) Both (b) & (c)
15 Which of the following are the structural changes in revamped Internal Audit
process
a) continuous monitoring of controls b) risk rating of branches
through offsite audit
c) changes in audit report format (ARF) d) All the above
16 Which of the following is not a categorization of Branches in Outlier
identification application
a) Outlier b) Moderate Outlier
c) Satisfactory d) Normal
17 With regard to identification of branches/units for Internal Audit, which
branch/unit is taken up first for audit first in terms of priority in the Outlier
Model
a) Those getting the highest score b) Those getting the lowest score
c) Those getting Normal score d) Those getting Moderate score
18 Branches getting _________score in Outlier Model are categorized as
‘Moderate’ status
a) >450 b) >350 to 450
c) >250 to 350 d) 0 to 250
19 Branches getting _________score in Outlier Model are categorized as
‘Normal’ status
a) >450 b) >350 to 450
c) >250 to 350 d) 0 to 250
943
20 Branches getting _________score in Outlier Model are categorized as
‘Acceptable’ status
a) >450 b) >350 to 450
c) >250 to 350 d) 0 to 250
21 The date of next Audit will not be more than _________months and not less
than ____________months from that of the previous Audit
a) 21 & 12 b) 18 & 9
c) 21 & 18 d) 21 & 9
22 The minimum period of 9 months will not be a restraining factor for early
conduct of Audit in which of the following:

a) Spot Audit b) Specific areas of

concern/irregularities
c) Serious irregularities having taken d) All of the above
place in Auditee units
23 Offsite Audit process envisages
a) Centralized monitoring of auditee b) Centralized Control of auditee units
units based on remote evaluation of based on remote evaluation of data
data points available in the source points
systems - CBS, LOS, LLMS, CDC
reports, warehoused data with
IDSPM etc.
c) To reduce the overall expenditure in d) Decentralisation of Monitoring &
connection with Audit Control of Auditee units
24 A score of ________ (__% of the total ORM-RFIA score) has been assigned to
the ORM area of Offsite Audit
a) 240 & 24 b) 460 & 46
c) 260 & 26 d) 320 & 32
25 In the Internal Audit, which are the areas where separate rating are given
a) CRM, ORM & Business b) CRM, ORM, Domestic Business &
International Business
c) CRM, ORM & Budget achievement d) CRM, ORM & FEMA
26 In the Audit Rating symbols, the letters sequentially indicate which of the
following:
a) FEMA, CRM, ORM b) CRM, ORM, FEMA
c) ORM, FEMA, CRM d) CRM, FEMA, ORM
27 Frauds which involve gross negligence in following systems and
procedures, abuse of delegated powers, staff involvement for personal
gains and concealing of fraudulent transactions and non-reporting to
controllers – comes under which category of Frauds in RFIA
a) Category-I b) Category-II
c) Category-III d) None of the above
28 Frauds that have occurred mainly outside the control area of the branch more
particularly in the realm of digital banking, for which the branch cannot be
made responsible – comes under which category of Frauds
a) Category-I b) Category-II
c) Category-III d) None of the above

29 In RFIA, what is the penalty for branches identified as Category-I Fraud

944
 a) ORM rating of the branch will be b) ORM score will be reduced by a
downgraded by one step minimum of 50
c) ORM & CRM score will be reduced d) ORM rating of the branch will be
by a minimum of 50 or more downgraded by one step and score
will be reduced by a minimum of 50
or more.
30 In RFIA, what is the penalty for branches identified as Category-II Fraud
a) ORM rating of the branch will be b) ORM score will be reduced by a
downgraded by one step minimum of 50
c) Negative marks of 50 will be d) ORM rating of the branch will be
awarded, which may or may not downgraded by one step and score
entail a down grade of Risk Rating will be reduced by a minimum of 50
depending on the score. or more.
31 The penalty for false compliances against OTMS alerts is
a) A negative score of 10 for each false b) A negative score of 10 for each
compliance to an OTMS alert with a false compliance to an OTMS alert
minimum of 10 and a maximum of with a minimum of 20 and a
50 (for all false compliances) will be maximum of 50 (for all false
awarded compliances) will be awarded

c) A negative score of 10 for each false d) A negative score of 10 for each

compliance to an OTMS alert with a false compliance to an OTMS alert
minimum of 20 and a maximum of with a minimum of 5 and a
100 (for all false compliances) will maximum of 50 (for all false
be awarded compliances) will be awarded

32 ________________forms an integral element of the overall operational risk

framework, as it helps the Bank in risk identification and risk management
efforts and to improve the understanding, control and oversight of its
operational risks.
a) Risk Control Self-Assessment b) Risk Centered Self-Assessment
c) Risk Control Self-Appraisal d) Risk Contained Self-Assessment
33 Risk Control Self-Assessment is different in which of the following ways:

a) While RCSA is a proactive b) RCSA focuses on identification of

assessment of risk and control unknown Risks but Audit focuses
effectiveness, Audit is post-facto on managing known Risks
assessment of adherence to System
& Procedures
c) RCSA has involvement of all staff d) All of the above
but Audit has involvement of
selective staff

34 ________________is a risk event that otherwise meets the definition of an

operational loss event, but for which no financial loss has been incurred not
because of effective controls but due to fortuitous circumstances
a) Risk Control Self-Assessment b) Frauds
c) Near Miss Event d) Near Miss Frauds

35 Which of the following is not an incident of IT related Near Miss Event related

945
 a) Fraud committed due to b) Failed BCP / DR tests
compromise of user credentials
c) Unsuccessful physical access d) Unsuccessful hacking attempts on
attempts i.e. on physical locations IT components
36 Preventive Vigilance is important in Banks due to which of the following:
a) To minimise frauds, irregularities, b) To formulate remedial measures
lapses and initiate corrective actions
c) To follow systems and procedures d) All of the above
meticulously; Enjoy faith and
confidence of public; Ensure there is
no loss of business.
37 Which of the following is not a differentiating reason between Preventive
Vigilance and Punitive Vigilance
a) Preventive vigilance is not directed b) Preventive Vigilance cannot be
against an individual whereas misused for vindictive purposes
Punitive Vigilance targets against an while Punitive Vigilance can be
individual misused
c) Preventive Vigilance is highly costly d) Preventive Vigilance is impersonal
and requires elaborate specialized and does not act as a fetter upon
machinery unlike cheaper punitive the rightful exercise of authority
vigilance. whereas Punitive Vigilance is not so
38 Which of the following best describes the feature of Preventive Vigilance
Committee at the Branches/Operating Units
a) Preventive Vigilance Committee b) Preventive Vigilance Committee
acts as a Power Centre in cannot completely avoid frauds and
Branches/Units hence is of little use
c) Preventive Vigilance Committee is d) As most of the processes in the
like a Knowledge Circle in Branches/Units are computerized,
Branches/Units aimed at prevention Preventive Vigilance Committee is
of loss and enhancement of best utilized in centralized IT
performance Operations like GITC
39 In which of the following Branches/Units, formation of Preventive
Vigilance Committee is not compulsory
a) A branch with staff strength of 5 with b) Centralised Processing Cells like
recent detection of fraud RACPC, SMECC, RASMECCC, etc
c) Branches having staff strength of 10 d) All AGM headed units
or more
40 The periodicity of Preventive Vigilance Committee Meeting is
a) Monthly b) Quarterly
c) Half-yearly d) Yearly
41 ____________________provides a framework to the organization to draw
up an action plan for meeting any crisis (disaster or emergency)
a) Near Miss Events b) ORM
c) CRM d) Business Continuity Guidelines
42 The BC&OR Plan for existing branches/CPCs/Offices is required to be
reviewed and approved as on __________every year.
a) 31st January b) 31st May
c) 30th September d) 30th June
43 While approving BC&OR Plan, the Controller should see that the designated
alternate location ________________
946
 a) should be in the same premises b) should not be in the same centre
c) should not be in the same premises d) should not be in the same locality
44 BC&OR Plan is required to be tested across all branches/processing
centres/offices at least once in __________

a) A Half-year b) a year
c) Every Quarter d) As and when advised by the
Controllers
45 The branch/processing centre/office to invoke BC&OR within ____________
of disruption and commence functioning from the designated alternate
location within _________of disruption without waiting for restoration of
connectivity
a) One hour & 30 Minutes b) 30 Minutes & 45 Minutes
c) 30 Minutes & One hour d) One hour & Two Hour
46 In BC&OR Plan, the abbreviation ‘BIA’ means
a) Business Impact Analysis b) Business Identifier Analysis
c) Budget Impact Analysis d) Business Indicator Analysis
47 In BC&OR, the team which makes all key decisions and co-ordinate with all
other teams is
a) Response Team b) Co-ordinating Team
c) Liaison Team d) Crisis Management Team
48 In BC&OR, ____________is responsible for ensuring the safety of individuals
in the event of fire, floods and other exigencies
a) Exigency Response Team b) Emergency Response Team
c) Crisis Reaction Team d) Exigency Reaction Team
49 _______________ is defined as an interruption of mission critical
information services for an unacceptable period of time
a) Disaster b) Emergency
c) Crisis d) Collateral Damage
50 DRP is _____________ in nature
a) Reactive b) Responsive
c) Proactive d) Repulsive
51 Each Disaster Recovery Plan (DRP) should become a part of ____________,
and a reference be made in the ___________________________
a) Branch Document & Reviewed b) Branch Dossier & Branch
during P-Review Meetings Manager's Monthly Certificate
c) Aide Memoire & Branch Manager's d) Branch Document & Branch
Monthly Certificate Manager's Monthly Certificate
52 Branches maintaining currency chest are guarded twenty-four hours a day
by the armed guards and there are at least ________on duty during business
hours.
a) One Guard b) Two Guards
c) Three Guards d) As advised by the Security Officer
in consultation with the Controllers
53 Maximum of _____ cartridges are kept with every gun against
acknowledgement of the guards. While on duty, ______ cartridges are loaded
in the gun and the remaining are carried in the pouch / belt by the guard.
a) 10, 2 b) 2,10
947
 c) 20, 2 d) 2, 20

54 In order to detect electrical faults, which may lead to short circuit and fire,
which of the following is to be done
a) AMC with approved Electrical b) Liaison with Electricity Department
engineering company
c) Electrical Audit d) Get in touch with Electrical
Engineer in LHO
55 Bank’s Security Officer has to visit branches under his professional
guidance once in a ___________
a) Month b) Quarter
c) Half-Year d) Year

56 In order to familiarize the staff with regard to maintenance and use of Fire
Extinguishers, which of the following is to be done:
a) Ensure that each staff member is b) Depute each staff to attend an
provided with the Fire Extinguisher exclusive Training Programme at
Manual SBILDs
c) Every staff, on a turn should be d) A demonstration on the
deputed to the nearby Fire Station maintenance and use of the fire
for training extinguishers
57 As a security measure, which of the following is mandatorily to be installed
in all Currency Chest Branches?
a) Installation of Positive Infrared b) Installation of Electronic Time
Sensor (PIR) Locks
c) CCTV is installed in the Currency d) As per the guidelines of the Security
Chest Officer

58 __________________indicates the location of the important keys of the

branch, their effective custody etc
a) Locking up Arrangements b) Emergency Arrangements
c) Key-holding Arrangements d) Security Arrangements
59 Information Security is all about ensuring CIA which means
a) Credibility, Integrity & Availability b) Credibility, Integrity & Applicability
c) Confidentiality, Integrity & d) Confidentiality, Integrity &
Availability Accessibility
60 SBSOC has been setup for Real-time Monitoring, Analysis, Correlation and
Incident Management based on the logs generated by IT Assets. SBSOC
stands for

a) State Bank Systems Operations b) State Bank Security Operations

Centre Centre
c) Secured Business Systems d) Secured Banking Systems
Operations Centre Operations Centre

61 Password should be changed at least once in __ days or

___________________
a) 180 days & when you suspect it has b) 90 days & as and when the user
been compromised remembers

948
 c) 30 days & when you suspect it has d) 90 days & when you suspect it has
been compromised been compromised
62 Failed SI report for recovery of Locker rent is available in the CDC Reports
Folder between
a) 1st and 5th April b) 1st and 5th March
c) 6th and 10th April d) 25th and 31st March
63 Maximum limit for Non-Home Branch transfer transactions in SB accounts
other than HNI/NRI is
a) Rs. 1 lac b) Rs. 2 lacs
c) Rs. 10 lacs d) Rs. 5 lacs
64 Maximum limit for Non-Home Branch transfer transactions in accounts of
SB-HNI/NRI, CA-Per, CA-Corporate & CA-Govt. is
a) Rs. 100 lacs b) Rs. 25 lacs
c) Rs. 10 lacs d) Rs. 50 lacs
65 Maximum limit for Non-Home Branch transfer transactions in accounts of
Corporate Client Cheques payable at par having Facsimile signature is
a) Rs. 100 lacs b) Rs. 25 lacs
c) Rs. 10 lacs d) Unlimited
66 Maximum limit for Non-Home Branch transfer transactions in accounts of
Corporate Client Cheques payable at par other than those having Facsimile
signature is
a) Rs. 100 lacs b) Rs. 25 lacs
c) Rs. 10 lacs d) Unlimited
67 Maximum limit for Non-Home Branch Cash transactions in Per Segment for
Self is Rs._______________ and for Third party Rs.___________
a) Rs. 50,000/- & Not allowed b) Rs. 50,000/- & No Limit
c) Rs. 1,00,000/- & Rs.50,000 d) Rs. 50,000/- & Rs.50,000
68 Non-Home Branch Cash transactions for Super Senior citizens of more than
80 years of age are allowed upto a limit of ___________
a) Rs. 5000 b) Rs.10,000
c) Rs.15,000 d) Rs.25,000
69 Non-Home Branch Cash transactions for SME segment and for Agri-KCC
cheques for Self is Rs._________ and for Third party is Rs._____________
a) Rs. 50,000/- & Not allowed b) Rs. 2,00,000/- & Not allowed
c) Rs. 1,00,000/- & Not allowed d) Rs. 5,00,000/- & Not allowed
70 Maximum limit for Non-Home Branch Cash transactions in CAG/CCG
customers for Self is Rs._______________ and for Third party
Rs.___________
a) Rs. 2,00,000/- & Not allowed b) Not allowed & Not allowed
c) Rs. 5,00,000/- & Not allowed d) Rs. 10,00,000/- & Not allowed
71 Passing for payment of high value cheques of ___________will be physically
authorized by two officials
a) Rs.10 lacs and above b) Rs.20 lacs and above
c) Rs.50 lacs and above d) Rs.100 lacs and above
72 Individual/s, entities, etc. having controlling ownership interest more than
____ % “Control” (right to appoint majority of directors/control
management/policy decisions) in Companies are called as “Beneficial
Owners”
949
 a) 10% b) 20%
c) 15% d) 25%
73 Individual/s, entities, etc. having controlling ownership interest more than
____ % controlling ownership in Partnership/Association/Trusts are called
as “Beneficial Owners”
a) 10% b) 20%
c) 15% d) 25%
74 Which of the following will result in Partial Freezing of Accounts
a) Accounts opened with deemed b) Small accounts where OVD is not
OVD, but updated OVD is not provided within a period of 24
provided within 3 months months
c) Accounts found KYC non-complaint d) All of the above
on re-examination/audit/inspection
75 ___________is the competent authority to do partial Freeze/removal of Partial
Freeze of accounts
a) Branch Manager b) Regional Manager
c) DGM (B&) d) DGM & CFO
76 For partial freeze of accounts, after _________ period from the date of first
notice only credits to be allowed
a) 1 month b) 2 months
c) 3 months d) 15 days
77 The designated Money Laundering Reporting Officer (MLRO) at Circles is
a) CGM of the Circle b) Any identified GM (Network) by the
CMC
c) DGM (B&O) of the AO d) DGM & CFO of the Circle
78 The designated Deputy Money Laundering Reporting Officer (MLRO) at
Circles is
a) CGM of the Circle b) Any identified GM (Network)
by the CMC
c) DGM in the AO d) DGM & CFO of the Circle
79 The designated Assistant Money Laundering Reporting Officer (MLRO) at
Circles is
a) DGM (B&O) b) AGM/Branch Head
c) Regional Manager d) Either (b) or (c)
80 Which of the following Banks come within the ambit of Banking Ombudsman
(amended July 1, 2017)
a) All Scheduled commercial banks, b) Regional Rural Banks
c) Scheduled primary Cooperative d) All the above
Banks.
81 The enactment by the Hiring Incentives to Restore Employment (HIRE) Act
on March 18,2010 as a direct result of the focus by the United States on
combating off-shore tax evasion and recouping much needed tax revenues
is ________
a) Foreign Advance Tax Compliance b) Foreigners’ Account Taxation
Act Control Act
c) Foreigners’ Advance Tax Control d) Foreign Account Tax Compliance
Act Act
82 The ultimate goal of FATCA is for the United States _____________
a) to obtain information with respect to b) To strengthen the US position
950
 offshore accounts and investments amongst other nations
beneficially owned by US taxpayers
c) to collect any tax through the new d) None of the above
withholding regime
83 Under FATCA, the Financial Account maintained by a Reporting Indian
Financial Institution and held by one or more Specified U.S. Persons or by a
Non-U.S. Entity with one or more Controlling Persons that is a Specified U.S.
Person is known as _________
a) India Reportable Account b) U.S Reportable Account
c) India Receivable Account d) U.S Receivable Account
84 Under FATCA, the term “U.S. Person” means
a) a U.S. citizen or b) a U.S. citizen or
resident individual, a resident individual, a
partnership or partnership or
corporation corporation
organized outside the organized in the
United States or United States or
under the laws of the under the laws of the
United States or any
United States or any
State thereof, a trust
State thereof, a trust
c) a U.S. citizen or d) None of the above
resident individual, a
partnership or
corporation organized
in or outside the
United States or under
the laws of the United
States or any State
thereof, a trust
85 The nodal authority with regard to ensuring compliance of FATCA in
Financial Institutions in India is
a) Finance Ministry, Govt. of India b) FEMA
c) CBDT d) RBI
86 In case of non-compliance or wrong compliance with the provisions
of FATCA by any Bank or Financial Institution, it may be treated as a
Non-Participating Financial Institution (NPFI) by US IRS. Once any
Financial Institution is treated as NPFI, the impact for the Financial
institution is____________
a) a 10% withholding tax would be b) a 20% withholding tax would be
applicable for all payments made applicable for all payments made
through such non participating through such non participating
financial institutions financial institutions
c) a 30% withholding tax would be d) No impact on the Financial
applicable for all payments made Institution
through such non participating FIs.
87 The Committee which recommended setting up of the Banking Codes and
Standards Board of India (BCSBI) was
a) Narasimham b) S.S. Tarapore
c) R.K. Talwar d) Goiporia
951
88 Banking Codes and Standards Board of India was registered under the
a) Companies Act 2013 b) Government Company
c) Banking Regulation Act 1949 d) Societies Registration Act, 1860
89 Which one of the following is not the use of IFAMS software, the centralized
application software for Fixed Assets?
a) Fixed Asset Management b) Depreciation Calculation
c) Posting of accounting entries related d) Insurance premium calculation and
to Fixed Assets in CBS payment for Fixed Assets of the
Bank
90 Which one of the following assets will not be maintained by the IFAMS
software
a) Project Under Construction (PUC) b) Leased Assets
c) Fixed Assets on which Bank has a d) Premises and Fixed Assets
legal charge as a secured creditor
91 Which of the following types of accounts in CBS are more sensitive and as
such requires more monitoring and control?
a) CC/OD accounts of customers b) DL/TL accounts of customers
c) Deposits accounts of customers d) System Suspense accounts
92 In CBS which type of accounts generate reference numbers which are to be
used at the time of reversal of the originating entries
a) Non-reconciliatory type of BGL a/cs b) Reconciliatory type of BGL a/cs
c) Non-reconciliatory type of Customer d) Reconciliatory type of Customer
a/cs a/cs

93 Which of the following type of BGL accounts has to be reversed with a

Responding Debit entry?
a) Originating Credit b) Originating Debit
c) Responding Credit d) Reversing Credit
94 Which of the following is a True statement with regard to ATM Cash
disbursed customer account is debited (BGL No. 98581)
a) Owing to connectivity problem b) For complaints received by ATM
between ATM and CBS, Switch in case of failure of ‘Not on
transactions are authorized on the Us’ transactions, if reply is not
basis of balance available in received by ATM Switch within the
Positive Balance File (PBF) by the stipulated time period (now 3 days),
ATM System. However, once the ATM Switch debits the branch
connectivity is restored, if any 98581 and credits passed on to the
transaction in the above process other Bank.
could not be posted to the
customer's account for want of
funds, or due to posting restriction,
Branch 98581 is debited

c) Both (a) & (b) d) None of the above

95 Which of the following is a True statement with regard to RTGS Rejected

transactions account is posted (BGL No. 98593)
a) The failed outgoing Inter Bank b) Incoming Inter Bank transactions
RTGS transactions which have (Inter- Bank remittances for e.g.
been returned on rejection by the Credit for multiple customers,
952
 other Bank land in this account. proceeds of cheques sent directly
to Other Bank and Inland Bill/LC Bill
related transactions) which get
posted to this account
c) Both (a) & (b) d) None of the above
96 All failed debit transactions are posted in _____________ account while
uploading of bulk transactions relating to various service charges like
inspection charges, SMS charges, ATM service charges, etc
a) RTGS Rejected transactions b) System Suspense -DD to be
account issued account
c) NEFT Rejected transactions d) Trickle Feed Rejected Debit a/c
account
97 Which one of the following statements is not true about the importance of
Tax Deduction at Source (TDS) for the Government
a) TDS prepones the collection of tax, b) TDS provides for a greater reach
ensures a regular source of revenue and wider base for tax
c) TDS helps the overall Banking d) The government uses TDS as a tool
system by improving the Credit- to collect tax to minimise tax
Deposit (CD) Ratio evasion by taxing the income
(partially or wholly) at the time it is
generated rather than at a later date
98 Which of the following is not subject to TDS deduction?
a) Payment for Branch Premises b) Quarterly Concurrent Auditor fees
contract work billed at Rs.45,000 of Rs.10,000/- per quarter
c) Leased Rent payment made to the d) Interest on a Customer’s Recurring
landlord of the Branch Official’s Deposit along with accrued interest
residence for Rs.16,000/- per month for the year amounting to
Rs.50,000/- (assuming that there is
no other deposit or account of the
customer except an SB account)
99 Which of the following statements is false with regard to TDS applicability?
a) TDS is deductible on Interest b) In case of Interest payable to Non-
accrued and paid for STD/TD for a residents, TDS deduction shall be
customer, if it exceeds the threshold made in the same way as
limit Domestic Resident accounts
c) Interest on Savings Bank account d) Highest rate of TDS is deductible
is not subject to TDS deduction on NRO deposits

953
 ANSWERS
Q 1 2 3 4 5 6 7 8 9 10
ANS B D A A C D D A D B
Q 11 12 13 14 15 16 17 18 19 20
ANS D D D D D C A B D C
Q 21 22 23 24 25 26 27 28 29 30
ANS D D A C D B A C D C
Q 31 32 33 34 35 36 37 38 39 40
ANS B A D C A D C C D B
Q 41 42 43 44 45 46 47 48 49 50
ANS D D C B C A D B A C
Q 51 52 53 54 55 56 57 58 59 60
ANS D B A C D D B A C B
Q 61 62 63 64 65 66 67 68 69 70
ANS D A C D C D A B C B
Q 71 72 73 74 75 76 77 78 79 80
ANS C D C D A C D C B D
Q 81 82 83 84 85 86 87 88 89 90
ANS D A B B A C B D D C
Q 91 92 93 94 95 96 97 98 99
ANS D B A C C D C C B

954
 SYSTEM AND PROCEDURES – II

1 For non-deduction of TDS from Interest on deposits, Form 15G is to be

provided by the Resident Indian individual deposit holder who is of age
a) Upto 60 years b) Below 60 years
c) Above 60 years d) None of the above

2 In case of failure to deduct whole or part of TDS, the deductor is liable to be

penalized with which of the following:
a) pay simple interest @ 1.5% for b) pay simple interest @ 2% for every
every month or part of a month on month or part of a month on the
the amount of tax in arrear from the amount of tax in arrear from the date
date on which such tax was on which such tax was deductible to
deductible to the date on which such the date on which such tax is actually
tax is actually deducted deducted
c) pay simple interest @ 1% for every d) pay simple interest @ 5% for every
month or part of a month on the month or part of a month on the amount
amount of tax in arrear from the of tax in arrear from the date on which
date on which such tax was such tax was deductible to the date on
deductible to the date on which which such tax is actually deducted
such tax is actually deducted
3 In case of failure to deposit whole or part of TDS in Govt. account after
deduction, the deductor is liable to be penalized with which of the following
penalties apart from being liable to be prosecuted:
a) to pay interest @ 2.5% for every b) to pay interest @ 2% for every month
month or part of the month on the or part of the month on the amount of
amount of such tax from the date on such tax from the date on which such
which such tax was deducted to the tax was deducted to the date on which
date on which such tax is actually such tax is actually paid
paid
c) to pay interest @ 1% for every d) to pay interest @ 1.5% for every
month or part of the month on the month or part of the month on the
amount of such tax from the date on amount of such tax from the date on
which such tax was deducted to the which such tax was deducted to the
date on which such tax is actually date on which such tax is actually
paid paid

4 Which of the following is not a source system for TDS deduction:

a) Interest on Deposits in Core b) Vendor Payments in Vendor Payment
Banking Solutions (CBS) Systems (VPS)
c) Salary Payments & Staff Pension in d) Integrated Fixed Assets Management
Human Resource Management Systems (Ifams)
System (HRMS)
5 Cheques bearing dates prior to the date of death of individual constituents
presented for payment can be ____________
a) Paid b) Cannot be paid and to be returned
c) Paid if presented by the legal heirs d) None of the above
6 A Cheque drawn by a Partnership firm, where one of the partners has deceased,
is presented for payment. It can be___________

955
 a) Paid b) Cannot be paid and to be returned

c) Paid if presented by the other d) Paid if presented by the other partners

partners jointly jointly with the legal heir/s of the
deceased partner
7 In a Joint Hindu Family, when one of the Co-parceners dies, the operations in
the account ________________
a) Can be continued by the Karta b) Cannot be continued. A new account
has to be opened to be operated by the
Karta
c) Can be continued with the d) Can be continued by the Karta,
operations by all other Co- provided that the deceased has not
parceners along with the legal heirs left a will
of the deceased co-parcener jointly
8 In a Joint Hindu Family, if the Karta dies, the operations in the account
________________
a) should not be allowed and payment b) Can be allowed
may be made against the joint
discharge of surviving coparceners
c) Can be allowed for the legal heirs of d) should not be allowed and payment
the Karta cannot be made even with the joint
discharge of surviving coparceners
9 On the death of an office bearer in a Club, the operations on the account should
be _____________. Any cheque drawn before the death of the office bearer has
to be ______________
a) Stopped; Returned b) Continued; Paid
c) Stopped; Paid d) Continued; Returned
10 In a Trust account, if one of the Trustees has deceased, the operations in the
account can be ________________________
a) Immediately stopped b) continued by the surviving Trustees
provided there is nothing contrary to
the Trust Deed and there is nothing
mentioned about appointment of new
Trustee
c) Continued d) Continued along with the legal heirs of
the deceased trustee
11 ____________________is a certificate granted by the Courts in India to the legal
heirs of a person dying intestate leaving debts and securities
a) Probate b) Succession Certificate
c) Letter of Administration d) None of the above
12 _______________ means the copy of the Will certified under the seal of a
court of competent jurisdiction with a grant of administration of the estate
of the testator
a) Probate b) Succession Certificate
c) Letter of Administration d) None of the above

13 ______________________ are granted by courts to appoint appropriate people

to deal with a deceased person’s estate where property will pass under Intestacy
956
 rules or where there are no executors living having been validly appointed under
the deceased’s ‘Will’
a) Probate b) Succession Certificate
c) Letter of Administration d) None of the above
14 The delegation powers to settle the balance lying in the deceased’s accounts
with balance of Rs. 1 crore and above against Succession Certificates,
Letters of Administration & Probates is with
a) Regional Managers b) BMs of incumbency Scale IV and
above
c) DGM (B&O) d) Branch Managers, irrespective of their
Grade
15 For Deceased Settlement of accounts, Indian Succession Act 1925 will be
applicable to deceased individuals of which among the following Religions:
a) Hindus b) Sikhs
c) Muslims d) Christians
16 For Deceased Settlement of accounts, Hindu Succession Act 1956 will not be
applicable to deceased individuals of which of the following religions:
a) Hindus b) Sikhs
c) Jains d) Parsis
17 Under Hindu Succession Act 1956, who among the following is not a Class-I
legal heir for a deceased Hindu Male died intestate
a) Father b) Mother
c) Widow d) Son/Daughter
18 Under Hindu Succession Act 1956, who among the following is a Entry-I Class-
II legal heir for a deceased Hindu Male died intestate
a) Father b) Mother
c) Widow d) Son/Daughter
19 In case, the deceased is a married female Hindu, who died intestate, which
among the following is not a legal heir
a) Sons & Daughters b) Husband
c) Brothers & Sisters d) Father & Mother
20 If a female Hindu who dies intestate does not have son/daughter, the property
inherited from her parents goes to ______________whereas if the same is
inherited from husband or parents-in law, _____________will inherit the property
a) heirs of father & Children b) heirs of father & heirs of husband
c) Children & heirs of husband d) None of the above
21 A & B are brothers who maintain Savings Account with your branch with the
mandate “E or S”. A has deceased and on request, payment has been made to
B, the survivor. Meanwhile, the legal heirs of A have made a rival claim. The
Bank ______
a) Liable to make payment to the legal b) Not liable to the legal heirs.
heirs
c) Not liable to the legal heirs provided d) None of the above
the Bank had already obtained the
Consent Letter from the deceased
constituent

957
22 Before making payment to the legal heirs of a deceased depositor who died
intestate, you receive a court order, having jurisdiction, restraining the
payment to the legal heirs. In such a case, the payment
a) Cannot be made to the legal heirs b) Can be paid and inform the Court

c) Can be paid to the legal heirs and d) None of the above

then apply for a Stay order
23 Which of the following are the formalities required to be completed in case
of a claim made by the nominee of the deceased customer
a) Nomination form to be filled in by the b) Nominee’s KYC to be provided
Nominee to claim the balance
c) Witness by two independent d) All of the above
persons
24 Which of the following is not a document need to be obtained for payment of
deposits of a deceased customer for balances upto Rs.5 lac
a) KYC documents of the legal heir(s) b) Revised Claim form duly filled and
signed by the Claimant(s) other than
those who have signed the Letter of
Disclaimer
c) One Surety good for the amount OR d) Stamped Letter of Indemnity from the
two Sureties jointly good for the Claimant(s)
amount
25 In Deceased Settlement, the legal heirs can stand as a ‘Surety’
when_________________
a) The legal heir(s) who has signed the b) Legal heirs cannot stand as Surety
Letter of Disclaimer in favour of
other legal heir(s)
c) Legal heirs can stand as Surety with d) Legal heirs can stand as Surety in
the Controller’s approval exceptional cases after complying with
certain formalities like Newspaper
publication
26 Succession Certificate granted by a District Court is valid
a) In that District only b) In that State where the District is
located
c) Depends on the value for which the d) Throughout India
Certificate is issued
27 ____________is appointed by the person making the Will empowering him or
she to do all acts specified in the Will
a) Legal Administrator b) Executor
c) Solicitor d) Legal Heir
28 Probate issued by the District Court is valid _________________
a) Throughout India b) Within the District
c) Within the State d) None of the above

29 Letter of Administration (LOA) is issued by a Court in favor of an Administrator

in which of the following circumstances:
a) when the deceased has died b) when the deceased has left a Will but
intestate. has not named an Executor
c) when the Executor named therein d) Any of the above circumstance
refuses to act or himself is dead
958
30 In case the Deceased Settlement claims up to a threshold limit of
____________in respect of missing persons, reported missing for
a_______________, shall be settled on production of – FIR, Non-traceable report
issued by the police authorities, Indemnity from the claimant (s).
a) Rs 1,00,000/-& minimum period of b) Rs 50,000/- & minimum period of two
one year year
c) Rs 1,00,000/-& minimum period of d) Rs 2,00,000/-& minimum period of one
Five year year

31 When a foreigner dies, leaving assets in India, but having named a person not
residing in India as the executor in his will, which of the following is the
procedure to be followed:
a) legal representation will have to be b) Seek the help of the Indian Embassy
obtained first in India and on the stationed in the foreign country of the
strength of which letter of foreigner
administration has to be obtained in
the foreign country
c) Seek the intervention of RBI through d) legal representation will have to be
controllers obtained first in the foreigner's country
and on the strength of which letter of
administration has to be obtained in
India

32 With regard to the assets left with the bank by deceased Army, Air force and
Naval personnel, _________________________

a) Deceased Settlement to be done b) they can be disposed-off without the

with the same procedures as are production of legal representation
applicable to the public. irrespective of the amount as per the
provisions of the Army and Air Force
(Disposal of private property) Act, 1950
and Navy Act, 1957 under section 171,
172 and 174.
c) Deceased Settlement to be done d) None of the above
with the concurrence and approval
of the respective Heads of the
Defence
33 Which of the following procedures is a procedure with regard to Release of Title
Deeds of the Deceased Borrowers?
a) The persons who are entitled to b) obtain Death Certificate and keep it on
claim the Title Deeds of a deceased record, (if possible) the Legal Heir
borrower are his heirs subject to the Certificate issued by MRO may be
Personal Law by which the obtained
deceased borrower is governed
c) obtain a request letter from the legal d) All of the above
heirs of the deceased borrower for
return of the title deeds on a
specified format, obtain an Affidavit-
cum-Indemnity executed by all the
legal heirs of the deceased borrower
before a Notary Public on Non-
959
 Judicial Stamp worth Rs.100
34 In case of death of NRI account holders, legal heirs are also NRIs or foreign
nationals, where it is not possible for the claimant(s) to come to India for
completion of formalities then he/she can
a) execute the documents abroad in b) the documents can be executed in the
the presence of officials of our presence of Indian Embassy officials
foreign offices
c) Either (a) or (b) above d) In view of the inherent risks attached to
NRIs, the legal heir has to come to the
Home Branch in India and complete
the formalities.
35 For settlement of accounts of the deceased died intestate, which of the following
cannot be accepted as a Surety
a) Visually Challenged Resident Indian b) Illiterate Resident Indian
c) Foreign Nationals d) All of the above
36 In case of death of NRI customers abroad, to establish the veracity of the death
of the customer, which of the following is required:
a) A death certificate which is attested b) A death certificate which is attested/
/ certified by Notary Public in that certified by the Embassy / High
country Indian Embassy / High Commission of that foreign country in
Commission in that country (or) an India
official in SBI's Foreign Office
c) Only (a) is correct d) Both (a) and (b) are correct

37 In case of death of NRI customers abroad, which of the following document as

a corroboratory evidence, confirming incidence of death
a) Evidence of settlement of an b) Evidence of settlement of proceeds of
insurance claim at foreign center on bank accounts at foreign center on
account of death of our account account of death of our account holder
holder
c) Evidence of settlement of terminal d) All of the above
benefits by the employer at foreign
center on account of death of our
account holder
38 TDS is to be deducted on Interest payments for deposits maintained with us for
which of the following:
a) Securities Exchange Board of India b) Pension Fund Regulatory and
Development Authority
c) Insurance Regulatory and d) Association of Mutual Funds in India
Development Authority
39 No tax is required to be deducted on following payments made to the
scheduled Banks
a) bank guarantee commission b) cash management service charges
c) depository charges on maintenance d) All of the above
of DEMAT accounts
40 Which of the following related to Deceased Settlement of Deposits has no legal
sanctity
a) Legal Heirship certificate issued by b) Succession Certificate
the Revenue Department
c) Probated Will d) Letter of Administration
960
 ANSWERS

1 2 3 4 5 6 7 8 9 10
Q
B C D D B B D A C B
ANS
11 12 13 14 15 16 17 18 19 20
Q
B A C D D D A A C B
ANS
21 22 23 24 25 26 27 28 29 30
Q
B A D C A D B C D A
ANS
31 32 33 34 35 36 37 38 39 40
Q
D B D C C D D D D A
ANS

961
 FOREIGN EXCHANGE AND INTERNATIONAL BANKING – SET -1

1. FCNRB loans for working Capital will be granted by way of

a) Demand Loan b) Term Loan

c) Overdraft d) Non Fund Based limits

2. FCNRB Term Loans can be sanctioned for a minimum period of……

a) 60 Months b) 36 Months

c) 12 Months d) 24 Months
3. FCNRB Term Loans can be sanctioned for a maximum period of……

a) 60 Months b) 36 Months

c) 12 Months d) 24 Months

4. Fund angle clearance is to be granted by whom?

a) GBU-K b) GMU-K

c) RBI d) GOI

5. Fund angle clearances to be granted for a period of only

a) 60 Months b) 36 Months

c) 12 Months d) 24 Months

6. If an existing borrower having a Rupee Term Loan desires to convert it into an

FCNRBTL, is it permitted.

a) Permitted b) Not permitted

c) Permitted subject to fresh d) Permitted subject to fresh Sanction

/documentation with RBI approval
sanction/documentation

7. In how many Designated Currencies can FCNRB(DL) / FCNRB(TL) be availed?

a) Three b) Four

c) Six d) Five

8. FCNRB(DL) / FCNRB(TL) cab be availed in

a) USD, GBP,EURO and YEN b) AUD, USD,EURO and INR

962
 c) CAD, USD,EURO and INR d) USD,AUD,CAD,EURO and YEN

9. Minimum loan amount under FCNRB(DL) / FCNRB(TL)

a) USD 10000 b) USD 20000

c) USD 30000 d) USD 50000

10. Which Bank Guarantee will be issued in lieu of Earnest Money that a bidder has
to deposit

a) Performance Bank Guarantee b) Bid bond Guarantee

c) Financial Guarantee d) Deferred payment Guarantee

11. Which Bank Guarantee is issued to make good of monetary loss in the event of
failure by applicant
a) Financial Bank Guarantee b) Deferred payment Guarantee
c) Performance Bank Guarantee d) Bid bond Guarantee
12. Export Trade is regulated by

a) DGFT b) RBI, FEDAI

c) Govt of India d) All the above

13. All items are classified into Major categories

a) 2 b) 3

c) 4 d) 5

14. Which of the following is not a correct category of Import / Export

a) Merchandise b) Services

c) Computers d) Project services

15. Status holders are classified into categories

a) 2 b) 3

c) 4 d) 5

963
16. Who lays down the ground rules, based on RBI's directions, for the day-to-day
conduct of foreign exchange activity by ADs

a) FEDAI b) ECGC

c) FTP d) RBI
17. Director General of Foreign Trade (DGFT) implements the Foreign Trade Policy
framed by the of Government of India
a) Ministry of Commerce b) Customs Department

c) Reserve Bank of India d) FEDAI

18. Prohibited Goods are the items which

a) Can be exported with b) Can be exported after having valid
Customs license for exports
permission

c) cannot be exported at all d) Can be exported with

DGFT permission

19. Restricted Goods are restricted items that

a) Cannot be exported with permission b) Can be exported with license

c) Can be exported with AD approval d) Can be exported with RBI permission

20. Total number of Diamond Dollar Accounts that can be opened as per FEMA

a) 2 b) 3

c) 5 d) 1

21. Any person resident outside India (not citizen of Pakistan or Bangladesh),
visiting India may take outside India not exceeding Rs

a) Rs 50,000/- b) Above Rs 50,000/-with PAN

c) Rs 25,000/- d) Equivalent of USD 2,50,000/-

22. Softex form should be submitted within days from date of .

a) 21...... date of transmission b) 30 ....... date of transmission

c) 21....... date of Invoice d) 30 ........ date of Invoice

23. Export documents should be submitted to the bank within 21 days from

964
 a) Date of Invoice b) Date of Export

c) Date of Receipt of EDF d) All of the above

24. EPC and PCFC are sources for

a) Export financing b) Import Financing

c) Bill Financing d) LC
25. Remittances against imports should be completed not later than months from
the date of shipment

a) 6 b) 12

c) 18 d) 24

26. UCP 600 became effective on

a) 01.07.2007 b) 01.01.2008

c) 01.01.2000 d) 01.07.2015

27. Inco Terms are Issued by

a) International Chamber of commerce b) World Trade Organisation

c) World Bank d) International Monetary fund

28. The documentary evidence for import transaction is

a) ED Form b) Bill of Entry

c) GR Form d) SOFTEX form

29. The period up to which Interest is to be collected on a usance export bill

a) Notional Transit Period b) Usance Plus NTP

c) Usance period d) 30 days

30. The software application used to report FX Transactions to Treasury

a) Bancs – 24 b) EXIM Bills

c) Mercury – FX d) SFMS

31. Contraventions under FEMA are

a) Civil in nature b) criminal in nature

965
 c) Has both characteristics of civil and d) Both Civil and criminal
criminal

32. ECGC stands for

a) Export Cooperation b) Export Credit Guarantee Corporation
Government corporation of India

c) Export Cash Guarantee Company d) Exchange credit Guarantee

corporation

33. To receive Foreign Contribution, Charitable educational institutions are required

to register themselves with
a) RBI b) Ministry of Finance

c) Ministry of Home Affairs d) Local Collectorate

34. Inward remittances in favour of Charitable Institutions are governed by

a) FEMA b) FCRA

c) IT Act d) Banking Regulation Act

35. FCRA stands for

a) Foreign Credit Regulation Act b) Foreign Contribution Regulation Act

c) Foreign Commission Receiving Act d) Foreign Credit Receiving Act

36. Indo-Nepal Remittance for individuals can be permitted under NEFT upto
a) INR RS 1,00,000/- b) INR Rs 50,000/-

c) INR Rs 2,00,000/- d) INR Rs 2,50,000/-

37. ECB stands for

a) Exchange Credit Bureau b) External Commercial Borrowings

c) External credit Bureau d) External Credit Borrowings

38. ECB can be raised in which foreign currency

a) Only in USD b) Only in INR

c) freely convertible foreign currency d) Freely convertible foreign currency

and Indian Rupees

39. Exports proceeds to be realised within a period of

a) 6 months from date of shipment b) 9 months from date of shipment

966
 c) 12 months from date of shipment d) 15 months from date of shipment

40. EEFC account can be maintained in the following manner

a) Savings Ac b) FCNR

c) Current Ac d) NRE Ac

41. Most popular risk management tool available to customers who have Foreign
Exchange Exposure is
a) Constant vigil b) Forward Rate Agreement

c) Forward Contract d) Currency Futures

42. SWIFT implemented in India in the year

a) 1990 b) 1991

c) 1992 d) 1994
43. DGFT full form

a) Directorate General of Foreign Trade b) Director General of Foreign Trade

c) Directorate General of Foreign Tax d) Director General of Foreign Taxes

44. Import transactions can be cross verified by using

a) ICEGATE b) ICEGRID

c) ICECAT d) ICECUBE

45. Delivery of FC will be happened in case of spot transactions

a) On the Same Day b) On the next day before 12pm

c) On the next day d) On the second day

46. OFAC full form is

a) Office of Foreign Assets Centre b) Office of Foreign Assets Country

c) Organization of Foreign Assets d) Office of Foreign Assets Control

Centre

47. Which one of the following is not a type of LC

a) Confirmed LC b) Non confirmed LC

c) Revolving LC d) Transferable LC

48. In LC, risk of non payment shifted to

967
 a) Importer b) Bank

c) Company d) All the above

49. Letter of Credit transactions are governed by

a) UCPDC b) DGFT

c) RBI d) Customs

50. What is the full form of FOB

a) Freight off board b) Freight on board

c) Free on board d) Free off board

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10
ANS A C A B C C B A D B
Q 11 12 13 14 15 16 17 18 19 20
ANS C D C C D A A C B C
Q 21 22 23 24 25 26 27 28 29 30
ANS C D B A A A A B C C
Q 31 32 33 34 35 36 37 38 39 40
ANS A B C B B B B D B C
Q 41 42 43 44 45 46 47 48 49 50
ANS C C A A D D B B A C

968
 FOREIGN EXCHANGE & NRI BUSINESS – SET 2 -

1 UCPDC means
a) Uniform code and practices for b) Uniform Customs and Practices
Documentary Credit for Documentary credits

c) Uniform practices for documentary d) Uniform Code and Procedures

credit for Documentary Credits

2 UCPDC-600 have been revised by

a) Bank of International Settlement b) World Bank and IMF

c) International chamber of d) United Nations Organisation

Commerce, Paris

3 LORO Account normally refers to

a) Our Account with You b) Your Account with us

c) Somebody’s account with us d) Their Account with you

4 Packing Credit can be allowed in excess of the Export value, in which of

the following circumstances
a) Where by-product can be exported b) Where partial domestic sale is
involved

c) Export of de-oiled/defatted cakes d) Any of the above.

5 An LC provides for allowing pre-shipment credit to the beneficiary. It is called

a) Confirmed LC b) Irrevocable LC

c) Back to back LC d) Red clause LC

6 Foreign Exchange rates in India are determined by

a) Finance Ministry b) RBI

c) FEDAI d) Market forces of

demand/supply

7 Who regulates the foreign trade in India

a) RBI b) DGFT

c) FEDAI d) SEBI

8 Foreign Currency Non-Resident (Banks) account can be opened in the name

of the following

969
 a) Non-resident Indian b) Person of Indian origin

c) Overseas Corporate Bodies d) Both a and b

9 Drawal of foreign Exchange by a person in India is not permitted in respect of

which of the following

a) Transactions with persons resident b) Travel to Nepal and Bhutan

in Nepal and Bhutan
c) Transactions given in Schedule 1 of d) All the above
FEMA

10 Which of the following methods is applied for quoting the foreign exchange
rates in India?

a) Cross rates b) Direct rate

c) Indirect rate d) Buying rate

11 Overseas corporate bodies mean

a) 50% by NRIs and balance by b) 60% by NRIs irrespective of

resident Indians balance holdings

c) 70% by NRI d) 60% by NRIs and balance by

Government

12 Under, UCPDC-600, the term “Middle” of a month shall be construed as

a) Second week of the month b) Third week of the month

c) 11th to 20th day of the month d) 5th to 15th day of the month

13 As per the article 5 of the UCPDC-600, Banks deals with

a) Goods and service b) Performance of the contract

c) documents d) none of the above

14 Under NRO Account, the repatriation can be done up to

a) USD 10000 b) USD 100000

c) USD 1 million d) No limit

15 An exporter is categorised as a Star Export House, if the export performance /

turnover in at least 2 out of 4 years is around

a) Rs.20 Crore b) Rs. 500 Crores

c) Rs.100 Crores d) Rs. 2500 Crores

The Outstanding Export bills are to be reported to RBI at:

970
16 a) Half yearly intervals at June and b) Half yearly intervals at March
December and September

c) Quarterly intervals at the end of the d) Fortnightly basis on 15th and

quarter last day of the month

17 An EEFC account will be opened as

a) Savings Bank account b) Current Account

c) Fixed Deposit account d) Any one of the above

18 Under Whole-turnover packing Credit policy covered with ECGC i.e., ECIB-
WTPC, the percentage

a) 75% up to Grade percentage limit b) 55% to 75% depending on the

Claim percentage

c) 90% of the limit d) 65% of the limit

19 The importer has to use Form A1, if the import payment exceeds

a) USD 500000 or its equivalent b) USD 100000 or its equivalent

c) USD 50000 or its equivalent d) USD 5000 or its equivalent

20 The time limit for settlement of usance import payment for capital goods is:
a) Maximum 6 months from the date of b) Maximum 12 months from the
shipment date of shipmen

c) Maximum up to the period less than d) Maximum 6 months from the

3 year date of documents

21 AD banks may approve trade credits per import transaction up to

a) USD 1 Million b) USD 10 million

c) USD 20 million d) USD 1 billion

22 The PCFC will be available for the maximum period of

a) 180 days b) 360 days

c) 180 days or working capital cycle d) 360 days or working capital

whichever is less cycle whichever is less

23 If all the terms and conditions are given on the bill of lading document
itself is called as

a) Clean bill of lading b) Long form bill of lading

971
 c) Short form bill of lading d) Straight bill of lading

24 The bill of lading that covers the entire voyage covering several modes of
transport are called as
a) Straight bill of lading b) Chartered party bill of lading

c) Through Bill of lading d) Claused Bill of lading

25 Any Bill of lading is safe for negotiation purposes if

a) It acknowledges that the goods have b) no superimposed clause or
been put on board of the shipment notation that expressly declares
the defective condition of the
goods
c) It is an acknowledgement that the d) Both a and b
goods have been received by the
ship owners for shipment

26 In case of usance bills, the Normal Transit period (NTP) as prescribed by

FEDAI is
a) 5 days b) 15 days

c) 25 days d) 30 days

27 The exporter should necessarily submit the export documents to the bank
within
a) 15 days from the date of the b) 15 days from the date of
documents shipment

c) 21 days from the date of the d) 21 days from the date of

documents shipment

28 When the seller place the goods at the side of the ship at named port and also
clear the goods for Export, which incoterms will be used :
a) FCA- Free Carrier b) FOB – Free on Board

c) FAS – Free Alongside Ship d) DAP – Delivery at Place

29 INCOTERMS issued by ICC, Paris is called as

a) Indian company terms b) International Commercial

Terms
c) International Contract terms d) None of the above

30 Balance of Trade means

a) Net position of capital account b) Current account balance

972
 c) Imports less exports d) Exports less imports

31 A contract which affords adequate protection to an exporter or an importer

against exchange risk is
a) Hedging b) Guarantee

c) Letter of Credit d) Forward Contract

32 The Balance in hand at the close of the day is

a) Short position b) Long position
c) Overnight position d) Day light position

33 The banks which may purchase or sell foreign currency in different markets
to take advantages of the rate differentials is called
a) Hedging b) Guarantee
c) Arbitrage d) Cover deal

34 A person does a transaction with Spot value on 8th January 2016(Friday),

then the settlement will be done on

a) 9th January, 2016 b) 11th January, 2016

c) 12th January, 2016 d) On the same day

35 Which of the following can remit up to USD 250000, under RBI’s Liberalised
Remittance scheme
a) All resident individuals b) Resident companies
c) All NRIs d) Resident partnership firms

36 The visits by a resident Indian to which of the following countries are not
eligible for obtaining foreign exchange under forex facilities to residents

a) All SAARC countries b) Pakistan and Bangladesh

c) Iraq and Libya d) Nepal and Bhutan

37 Maximum repayment period in PCFC

a) 360 days b) 180 days

c) 270 days d) 90 days

38 General permission is available to any resident individual to surrender

received / realised /unspent forex with in a period of

973
 a) 60 days b) 90 days

c) 180 days d) No time limit

39 Any resident Indian can hold Indian rupees during their travel abroad up to
a) Rs.7500 b) Rs. 10,000 /-

c) Rs. 25,000 /- d) No limit

40 What is the maximum amount of remittance that AD banks can make for
import payment where documents are directly received by importers

a) USD 25000 b) USD 100000

c) USD 200000 d) USD 300000

41 An exporter received advance against export supply can accept the

advance and pay maximum interest rate of:
a) MCLR b) MCLR + 100 bps
c) LIBOR d) LIBOR + 100 bps

42 Under, UCPDC-600, the documents must be presented by or on behalf of the

beneficiary for payment, not later than ___________ after the date of shipment,
but in any event not later than the expiry date of the credit

a) 21 banking days b) 21 business days

c) 21 working days d) 21 calendar days

43 Under, UCPDC-600, if the expiry date of a credit or the last day for presentation
falls on a day when the bank to which presentation is to be made is closed, the
expiry date or the last day for presentation, as the case may be

a) Will be the first preceding banking b) Will be the first following day
day

c) Will be the next following business d) Will be the first preceding

day business day

44 Which of the following is NOT a capital account transaction?

a) Investment in foreign securities b) Transfer of immovable property

outside India

974
 c) Export and import in to India d) Raising foreign currency loans
in India and abroad

45 The foreign exchange can be released as Currency notes / Coins up to

a) USD 3000 b) USD 5000 or its equivalent in
case of Iraq and Libya

c) No ceiling in case of Iran, Russian d) All the Above

Federation, and other republics of
commonwealth of independent
countries

46 In case of direct quotation of rate, which is true

a) Foreign Currency is variable b) Foreign currency is static

c) Indian currency is static d) None of the above

47 Which is false in case of forex remittances under Liberalised Remittance

Scheme:

a) Remittance for any purpose b) Remittances made to Bhutan,

specifically prohibited under Nepal, Mauritius or Pakistan
Schedule-1 of FEMA

c) Remittances can be made by any d) It is mandatory to have PAN

Resident Corporate, Partnership number to make remittances
firms, HUFs, Trusts etc.

48 While quoting the rates, the banks take into account the time factor i.e how
much is going to be taken to get the purchased currency credited to the
NOSTRO account abroad. This date is known as
Cash date b) Spot date
Forward date d) Value date

49 FCNR(B) deposits can be opened as Term deposit for the period:

a) Minimum 15 days, Maximum 10 b) Minimum 1 year, Maximum 5

years years

c) Minimum 1 year 1 day, Maximum d) Minimum 1 year, Maximum 10

2 years years

50 The NRE/ NRO accounts can be opened by NRI/PIO as a joint account with
close relatives who are resident Indian under _____________ condition

a) Either or Survivor b) Jointly

c) Former or Survivor d) No conditions apply

975
 FOREIGN EXCHANGE & NRI BUSINESS – SET 2 -
ANSWERS

Q 1 2 3 4 5 6 7 8 9 10
ANS B C D D D D D D D B
Q 11 12 13 14 15 16 17 18 19 20
ANS B C C C C A B C D C
Q 21 22 23 24 25 26 27 28 29 30
ANS C D B C D C D C B D
Q 31 32 33 34 35 36 37 38 39 40
ANS D C C C A D A C C D
Q 41 42 43 44 45 46 47 48 49 50
ANS D D B C D B C D B C

976
 FOREX / NRI BUSINSESS – SET – 3

1 Which is true in NRO account

a) Any person who are resident can b) Any person resident in Nepal and
open the account Bhutan can open

c) Additional preferential interest rate d) No restriction in repatriation of

for staff deposits not available funds from NRO accounts

2 Resident Foreign Currency (Domestic) account can be opened as

a) Only Current account b) Only Current account

c) Term deposits only d) SB/CA and Term deposits

3 SIBOR means
a) Symbolic inter-bank offered rate b) Srilanka Inter-bank Offered rate

c) Singapore Inter-bank offered rate d) Systematic Inter-bank offered

rate

4 The rate that Indian banks and other derivative market participants use
as a benchmark for setting prices on forward rate agreements and
interest rate derivatives
a) London Inter-bank offered rate b) Mumbai inter-bank offered rate
(LIBOR) [MIBOR]
c) Mumbai Inter-bank Forward Offered d) Euro Inter-bank offered rate
rate [MIFOR]
[EURIBOR]

5 Under, UCPDC – 600, the words “about” or “approx” used in connection with
the amount of LC or quantity of goods, or price per unit, the LC are to be
construed as allowing a tolerance not to exceed___________ the amount,
quantity, or price to which they refer:

a) 15% more or 15% less than b) 10% more or 10% less than

c) 5% more or 5%less than d) 2% more or 2% less than

6 Under UCPDC-600, a bank assumes no responsibility for consequences

arising out of the interruption of its business by the Acts of God, riots, civil
commotions, insurrections, wars, acts of terrorism, or by any strikes or
lockouts or causes beyond its control. This is called as:

a) Disclaimer b) Force majeure

c) Modus operandi d) Exclusion of liability

Which of the following is most preferred LC for an exporter

977
7 a) Revocable b) Irrevocable and red clause

c) Irrevocable, confirmed and without d) Confirmed and standby

recourse

8 LC issued in lieu of bank guarantee, is called

a) Red clause LC b) Green Clause LC

c) Standby LC d) Revolving LC

9 Transferable Letter of credits can be transferred

a) Any number of times b) Only once
c) 2 times d) 5 times

10 The statutory authority which administers the Exchange Control in India

a) Ministry of commerce b) DGFT

c) FEDAI d) RBI

11 In foreign Exchange transaction, which of the following is the basic buying

rate

a) Bills Buying rate b) TT Buying rate

c) FC buying rate d) Direct rate

12 Under UCPDC-600, branches of same bank in different countries are

a) Same bank b) Different bank

c) Associate bank d) Subsidiary bank

13 In respect of sale or purchase of foreign exchange, the following principal

would be followed in direct rate

a) Buy high b) Sell low

c) Buy low, sell high d) Buy high, sell low

14 Mr. Rajiv, a resident of Bangalore, had shifted to USA for employment

and settled there itself. While in USA, he married a USA girl, Sharapova,
What is the status of Sharapova
a) An Indian Resident b) Foreigner

c) A person of Indian origin d) Non-resident Indian

15 R-Return refers to returns concerning_________:

a) ALM Position b) CRR maintenance position

978
 c) NPA/SWL position d) Foreign Exchange transactions

16 IF the contraventions of any direction given by RBI under FEMA or to file a

return as per the Act, RBI can impose additional fine that may extend up to:

a) Rs.100 per day b) Rs.200 per day

c) Rs.500 per day d) Rs.2000 per day

17 An exporter gets a letter of credit for export of garments to US but the

expiry date of the credit falls on 15th August, which is a public holiday in
India. In such circumstances, the documents for negotiation can be
submitted to the negotiating bank on
a) Succeeding working day b) Succeeding banking day
c) Preceding business day d) Preceding banking day

18 The forward sale of purchase of foreign currency to reduce the exchange

risk exposure connected with the assets or liabilities denominated in
Foreign currency is called

a) Hedging b) Squaring

c) Brokering d) Spreading

19 What is the maximum amount that can be deposited in EEFC account

a) 25% of the exchange earned b) 50% of the exchange earned

c) 75% of the exchange earned d) 100% of the exchange earned

20 The gap between the buying rate and selling rate of a currency is called:

a) Bid-ask spread b) Dealer’s margin

c) Dealer’s spread d) Exchange margin

21 When a dealer purchases more of a currency and is unable to dispose off

it, the bank is exposed to:
a) Loss b) Exchange risk

c) Oversold position d) Dealing risk

22 A nominated bank or issuing bank shall each have a maximum of

__________ following the day of presentation to determine if the
documents are in order

a) 2 banking days b) 5 working days

c) 5 banking days d) 15 banking days

979
23 The bank which undertakes the responsibility of payment by the
issuing bank and on his failure to pay is called
a) Negotiating bank b) Confirming bank
c) Reimbursing bank d) Advising bank

24 Any LC which permits the advances for storage of goods in a warehouse in

addition to pre-shipment advance is called as:

a) Back to back LC b) Standby LC

c) Green Clause LC d) Red clause LC

25 Any LC is the one that can be cancelled or amended at any time without
giving prior notice to the knowledge of the beneficiary is called
a) Red Clause LC b) Stand by LC
c) Revocable LC d) Irrevocable LC

26 Mr. Jayant is going abroad for Medical Treatment at Singapore. He is

accompanied by his wife as attendant. How much foreign Exchange can be
released to attendant as per FEMA:
a) USD 10000 b) USD 15000

c) USD 25000 d) USD 100000

27 Any Resident individuals with actual forex exposures are allowed to

book forward contracts upto ______________ on declaration, subject to
certain conditions
a) USD 10000 b) USD 100000

c) USD 200000 d) USD 300000

28 In case of Foreign Currency Non- Resident (Banks ) account, the ceiling of

Interest rate for the term deposits of 3 to 5 years are
a) LIBOR + 50 bps b) LIBOR+ 200 BPS

c) LIBOR + 400 bps d) No limit at all

29 Whenever the NRI visits India on his temporary visit, can render Foreign
currency to his accounts exceeding __________ has to submit Currency
declaration form.
a) USD 3000 b) USD 5000
c) USD 10000 d) USD 25000

980
30 Any forex remittances with relates to Cultural tour as per the Schedule II of
FEMA should obtain permission from which ministry for release of forex:
a) Ministry of finance b) Ministry of HRD
c) Ministry of surface transport d) Ministry of Information and
Broadcasting

31 Which of the following is true with regard to borrowings in Foreign

Currency from Close relatives outside India.
a) The borrowing sum not to exceed b) Minimum maturity period of the
USD 250000 or its equivalent from loan is one year
his close relatives outside India

c) Loan is free of interest. Amount of d) All of the above

loan is received by inward
remittance in free forex through
normal banking channels or by debit
to NRE/FCNR account of a non-
resident lender

32 A person resident in India is allowed to retain foreign currency notes up to

an amount of ________ or its equivalent
a) No limit b) USD 2000
c) USD 5000 d) USD 10000

33 Currency declaration form is a declaration given to custom authorities

while entering India by any person if
a) Aggregate value of Foreign b) Aggregate Value of Foreign
exchange in the form of Currency Currency notes exceeds USD
notes, TCs, exceeds USD 10000 or 5000 or its equivalent
equivalent
c) Both a and b d) None of the above

34 The All-in-Cost ceilings for External Commercial Borrowings for the maturity
period of Three years and up to five years is

a) 6 months LIBOR Plus 200 bps b) 6 months LIBOR plus 350 bps
c) 6 months LIBOR plus 500 bps d) 6 months LIBOR plus 600 bps

35 In an export business, if the aggregate FOB value during the current and
Previous 3 years exceeds Rs.7500 Crores, then the export enjoys the facility
of:
a) Export house b) Star Export house

981
 c) Premium Export house d) Trading house

36 The AD banks and Status holder exporters can write off the unrealized
Export bills up to

a) 5% of the unrealized export bills b) 10% of the outstanding export

dues

c) 10% of the unrealized export bills d) No write off is permitted

37 The Authorised Dealers should crystalise the overdue export bills from
foreign currency liability to Rupee liability by applying
a) Bill selling rate b) TT selling rate
c) FC selling rate d) TT buying rate

38 In a letter of credit, by adding a confirmation, the confirming bank

undertakes the responsibility similar to that of
a) Negotiating bank b) Advising bank

c) Issuing bank d) Both b and c

39 Pre-shipment Credit in Foreign Currency is allowed at ________ related

interest rates
a) LIBOR b) SIBOR

c) ARR d) MIBOR

40 Which of the form does not match its purpose

a) ETX- Seeking extension in b) XOS - Statement of exports bills

realisation of bills from RBI outstanding more than 6 months

c) EFC- Opening of Foreign Currency d) BEF – Application for payment of

accounts with a bank in India or import payment
abroad by Exporters

41 Custom office returns to the exporter, which copy of the export

declaration form
a) Trade control copy b) Currency control copy
c) Exchange control copy d) Foreign control copy

42 Advance remittance can be allowed by AD banks, against import of aircraft

/ helicopter/ other aviation related purchases can be allowed without bank
guarantee for an amount up to

a) USD one million b) USD five million

982
 c) USD ten million d) USD 50 million

43 A foreign national on 3 months visit to India wants to open a bank account

a) He cannot be allowed to open any b) He can open any type of account

account that he need.
c) He can open an NRE account d) He can open a NRO account

44 Under, UCPDC-600, if the provisions of LC and the UCDPC are

contradictory

a) Provision of UCPDC would prevail b) Provisions of LC would prevail

over the provisions of LC over the provisions of UCPDC
c) Provisions favourable to the d) Provisions favourable to the
beneficiary would prevail applicant would prevail

45 Shipment date in a letter of credit is stipulated as “in the beginning of the

month”. The expression means that the shipment can take place during
a) 1st week of the month b) 1st three days of the month

c) 1st ten days of the month d) None of the above

46 What is the full form of FCA

a) Free carrier b) Free cost accommodation

c) Free care d) None of the above

47 Suppliers Credit and Buyers Credit are a part of

a) Pre Shipment Credit facilities b) Post Shipment Credit facilities

c) Finance extended by Indian Banks d) Finance extended by Foreign

Banks

48 IDPMS stands for

a) Input data processing and b) Important data processing

monitoring system and monitoring system

c) In-sufficient data processing and d) Import data processing and

monitoring system monitoring system

49 AD category-1 Banks can Write off to the extent of percentage of

invoice value in eligible cases of Import Bills.

a) 2.00% b) 3.00%

c) 4.00% d) 5.00%

983
50 TCS applicable in LRS for remittances above Rs. ____ in a year

Rs. 1,00,000 /- Rs. 3,00,000 /-

Rs. 5,00,000/- Rs. 7,00,000 /-

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10
ANS C A C C B B C C B D
Q 11 12 13 14 15 16 17 18 19 20
ANS B B C C D D B A D A
Q 21 22 23 24 25 26 27 28 29 30
ANS B C B C C C D C B B
Q 31 32 33 34 35 36 37 38 39 40
ANS D B C B C C B C C C
Q 41 42 43 44 45 46 47 48 49 50
ANS C D D B C A D D D D

984
 MCQ – NRI BUSINESS

1 An NRI, after spending 15 years abroad, on returning to India for

permanent settlement will have the status of
a) Resident Indian (RI) b) Non-Resident Indian (NRI)
c) Resident but Not Ordinarily Resident d) None of the above
(RNOR)
2 While opening NRE / NRO savings bank or current account, following
documents should be obtained from the applicant
a) Completed copy of NRI account b) Proof of Status, Identity and Tax
opening application Residency (if taxation details
declared) and Current & Permanent
address proofs
c) Additional document as mentioned d) All of the above
in account opening application (Not
required if NRI applicant is visiting
SBI branch in India in person to
open the account)
3 Continuous Discharge Certificate (CDC) relates to which class of NRIs
a) Professionals b) Entrepreneurs
c) Sea Farers d) Pilots flying aircrafts in foreign
countries
4 For Risk categorization, NRIs, including PIO/OCIs, are classified as
____________
a) High Risk customers b) Medium Risk customers
c) NRIs residing in or migrating to d) Low Risk Customers
specified ‘High Risk’ countries will be
marked as ‘High Risk’ customers.
Those in other than ‘High Risk’
countries will be marked as ‘Low
Risk’ customers if their occupation do
not fall under some specific
categories like Legal profession,
CA/ICWA, etc., otherwise ‘Medium
Risk’ Customers.

5 Foreign Nationals opening Student, Tourist or domestic rupee account will be

categorized as____________Risk customers
a) Low b) Medium
c) High d) Highest
6 SB account for NRIs can be opened under which type of the following Account
types

985
 a) Foreign Currency Non- b) Resident Foreign Currency Account
Resident (Bank) {FCNR(B)} (RFC)
c) FCNB Premium d) Non-Resident External (NRE)

7 Forward Contract is related to which type of the following NRI accounts

a) Foreign Currency Non-Resident b) Non-Resident External (NRE)
(Bank) {FCNR(B)}
c) Resident Foreign Currency Account d) FCNB Premium Account
(RFC)
8 Which of the following NRIs cannot open account
a) Physically challenged NRI b) Minors in sole name
c) Foreign National having d) Foreign National married to an
grandparents of Indian citizens Indian spouse
9 Which of the following accounts an NRI cannot open/maintain:
a) NRE-STD b) NRE-SB
c) Resident Foreign Currency account d) Resident SB Account
10 TDS is applicable on Interest from which of the following NRI accounts:
a) NRE-STD b) NRE-SB
c) FCNB Accounts d) NRO-STD
11 The highest rate of TDS is applicable under which of the following accounts:
a) Domestic STD b) NRE-STD
c) NRO-STD d) FCNB
12 Demand Loan/Overdraft against which of the following NRI deposit is not
permissible:
a) RFC b) NRE-STD
c) NRO-STD d) FCNB
13 An NRI customer who wants to make a Rupee deposit for One year but very
likely to do a premature closure before one year prefers to earn at least some
interest even if pre-closed before one year. Which deposit product can be
suggested:
a) NRE-STD b) NRO-STD
c) NRE-STD d) FCNR (B)
14 For NRIs holding NRO accounts jointly with Resident Indians, the mandate
should be
a) Former or Survivor b) Either or Survivor
c) Both Jointly d) Joint accounts with Resident
Indians are not permitted for NRIs
15 FCNR(B) deposits cannot be opened in which of the following currencies
a) Japanese Yen b) Australian Dollar
c) Chinese Yuan d) Canadian Dollar
16 Resident Foreign Currency (RFC) deposit is not permitted to be opened in
which of the following currencies
a) USD b) Euro
986
 c) GBP d) Canadian Dollar
17 Min. & Max. tenor for Resident Foreign Currency (RFC) deposit is
a) 1 & 5 years b) 1 & 10 years
c) 1 & 3 years d) 7 days to 10 years
18 Which of the following is not a permissible credit to an NRE-SB account
a) Proceeds of Foreign Currency b) Local credits
Notes
c) Inward remittance from abroad d) Transfers from other NRE accounts

19 Transfer of funds from NRO accounts to NRE accounts of an NRI is

permissible within _________________limit in a Fin. Year subject to
payment of taxes
a) USD 1 Million b) USD 0.50 Million
c) USD 2 Million d) Freely transferable without limits
provided the funds are not
repatriated
20 Which of the following is a not a permissible investment by an NRI
a) Mutual Funds b) Life Insurance Policies
c) Commercial Properties d) Agricultural land for the betterment
of the surrounding villages
21 What is the maximum permissible limit for repatriation of funds in NRE
deposits?
a) USD 1 Million b) USD 0.75 Million
c) USD 2 Million d) Freely repatriable without any limit
22 Penalty for premature withdrawal for NRE Term Deposits upto & above Rs.
5.00 lacs is ____% and _____% after completion of one year
a) 0.25% & 0.50% b) 0.50% & 1.00%
c) 1.00% & 0.50% d) 0.50% & 0.50%
23 Penalty for premature withdrawal for NRE Term Deposits upto & above Rs.
5.00 lacs is ____% and _____% before completion of one year
a) 0.25% & 0.50% b) 0.50% & 1.00%
c) 1.00% & 0.50% d) No Interest is payable

24 Joint accounts of NRIs along with ‘Relatives’ are permitted to be opened on

_________ basis
a) Not permitted b) Either or Survivor
c) Former or Survivor d) Both or Survivor
25 Joint accounts of NRIs along with ‘Relatives’ are permitted to be opened. The
term ‘Relatives’ is as defined in _________________
a) Sec 6 of Income Tax Act b) Sec 2 (77) of Indian Companies Act
2013
c) Sec 19 of Indian Partnership Act, d) Sec 2 (w) of FEMA 1999
1932
987
26 Which of the following Resident Indian relatives of an NRI is not permitted for
opening a Joint Account with the NRI
a) Step Brother b) Father
c) Wife d) Father-in-law
27 Which of the following Resident Indian relatives of an NRI is permitted for
opening a Joint Account with the NRI
a) Grandson b) Grand daughter
c) Son’s wife d) Grand Father
28 Which of the following deposits/accounts has the highest TDS on Interest?
a) Special Term Deposit b) Recurring Deposit
c) NRE SB Account d) NRO SB Account
29 Which of the following deposits is immune to Exchange Rate fluctuations
a) NRE STD b) NRO STD
c) FCNB Premium d) FCNR (B)
30 In which of the following deposits, Banks absorb the Exchange Rate risk

a) NRE STD b) NRO STD

c) FCNR (B) d) All of the above

31 Which of the following best defines the status Resident but Not Ordinarily
Resident (RNOR)
a) A person who was non- b) Person‘s stay in India during the 7
resident for at least 9 out of 10 previous year prior to the previous
previous years prior to the previous year under consideration was 729
year under consideration days or less
c) Either of the above d) Neither of the above
32 Resident but Not Ordinarily Resident (RNOR) status can be enjoyed upto
______ years
a) One b) Two
c) Five d) Till he/she becomes NRI again
33 A, an NRI, has NRE STD in your branch with B, also an NRI and the spouse of
A, being the nominee for the deposits. On the death of A, the Nominee wants
the deposits to be pre-closed and repatriated to her account. Can the
nominee’s request be acceded?
a) Yes. The deposits can be b) No. The request cannot be
repatriated through the B’s NRO a/c considered.
c) Yes. But only on maturity of the STD d) Yes. The deposits can be
repatriated through the B’s NRE a/c
34 For opening accounts for individuals of Bangladesh, in addition to the KYC
documents for NRIs, which of the following is required:
a) Valid Work Permit b) Valid Visa

988
 c) a valid residential permit issued by d) Cannot open accounts for
Foreigner Registration Office (FRO) individuals of Bangladesh
/ Foreigner Regional Registration
Office (FRRO) concerned
35 For opening accounts for entities of Bangladesh, prior approval to be obtained
from
a) Ministry of External Affairs, Govt. of b) RBI
India
c) Finance Ministry and Ministry of d) Cannot open accounts for entities of
External Affairs, Govt. of India Bangladesh
36 FCNB Premium account combines the benefits of:
a) FCNR(B) Deposits with Forward b) FCNB Deposits with Options
Contract Contract
c) FCNB Deposits with Higher Interest d) Higher Interest rates applicable to
rates applicable to Domestic Domestic deposits along with
deposits Exchange risk protection
37 FCNB Premium deposit will be placed in which of the following currencies:
a) USD, GBP, EUR b) USD, GBP, EUR, JPY
c) USD, GBP, EUR, JPY, CAD or AUD d) USD only
38 For FCNB Premium deposit, the Forward contract can be booked for final
return in ______currency/ies
a) INR, USD, GBP, EUR, JPY, CAD or b) USD, GBP, EUR, JPY, CAD or AUD
AUD
c) USD, GBP, EUR, JPY, CAD or AUD d) USD, GBP or EUR

39 In case of cancellation of Forward Contract by the depositor of FCNB Premium

deposit
a) Permitted with the Bank absorbing b) No such cancellation is permitted
the cancellation charges
c) cancellation charges and exchange d) Cancellation charges, Exchange
loss if any, has to borne by the loss, if any and FCNB pre-closure
depositor at prevailing rate. penalty to be borne by the depositor

40 Foreign Tourists who have come to India on a short visit, can open
_______Accounts
a) NRE b) NRO-SB account
c) Foreign Tourist NRO Current d) Not permitted to open accounts in
Account India
41 What is the maximum period Foreign Tourists can maintain their accounts
a) 6 months b) 1 year

989
 c) 2 years d) 6 months which can be extended for
a further period of 6 months if the
tourist Visa is extended for such
time period
42 Foreign students who visit India for the purpose of studies are permitted to
open which of the following accounts:
a) NRO-SB accounts b) NRO-CA
c) Foreign Tourist NRO-SB accounts d) Foreign Tourist NRO-CA accounts
43 Resident Foreign Currency Accounts can be opened in _______currency/ies
a) USD, GBP, EUR b) USD, GBP, EUR, CAD & SGD
c) USD, GBP, EUR, AUD & CAD d) USD, GBP, EUR, AUD, CAD &
SGD

44 RFC accounts can be opened for a minimum of ________ to maximum of

________years
a) 1 & 5 b) 1 & 3
c) 3&5 d) 1 & 10
45 Foreign nationals on employment in India are permitted to open
______accounts.
a) NRO b) NRE
c) FCNR(B) d) Domestic Resident accounts
46 NRIs are permitted to open Domestic Resident Accounts as Joint Accounts
with a Resident Indian as the primary/first applicant on which of the following
mandates
a) Former or Survivor b) Both or Survivor
c) Either or Survivor d) Not permitted to open such
accounts
47 Foreign students opening the account, should within _________days submit
a valid proof of address giving local address
a) 15 days b) 30 days
c) 45 days d) 60 days
48 Accounts opened for Foreign students, pending submission of Proof of
Address, the restrictions imposed in the account are:
a) Foreign remittance not exceeding b) Foreign remittance not exceeding
USD 1,000 and cap of monthly USD 2,000 and cap of monthly
withdrawal of Rs. 50,000 withdrawal of Rs. 50,000
c) Foreign remittance not exceeding d) Foreign remittance not exceeding
USD 1,000 and cap of monthly USD 5,000 and cap of monthly
withdrawal of Rs. 1,00,000 withdrawal of Rs. 25,000
49 NRIs residing in Nepal and Bhutan are permitted to open which of the
following accounts
a) NRO b) NRE & NRO
c) Domestic & NRO Accounts d) NRE & FCNB

990
 50 Power of Attorney of NRIs are not permitted to do which of the following
activities on behalf of NRIs
a) To repatriate outside India funds b) to apply for any of the Banks
to third parties Anytime Channels i.e. INB, ATM etc.
c) to transfer funds from the account to d) All the above
another NRE / NRO SB/Current
account on behalf of the account
holder

KEY NRI

1 2 3 4 5 6 7 8 9 10

ANS C D C C C D D B D D
Q 11 12 13 14 15 16 17 18 19 20
ANS C A B A C D C B A D
Q 21 22 23 24 25 26 27 28 29 30
ANS D B D C B D C D C C
Q 31 32 33 34 35 36 37 38 39 40
ANS C B A C B A D A C C
Q 41 42 43 44 45 46 47 48 49 50
ANS D A A B D C B A D D

991
 ABBREVIATIONS - MCQs

1 Expand IFSC

a Indian Financial System Code b Indian Financial Services

Code

c Inter Bank Financial Services d None of these

2 Expand TCRN

a Tentative Customer Reference b Tenth Customer Reference

Number Number

c Temporary Customer Record d Temporary Customer

Number Reference Number

3 Expand OLTAS

a Open Line Tax Accounting b Online Tax Accounting System

System

c Online Tax Accounting System d Online Tax Audit system

4 Expand CBDT

a Central Board of Direct Taxes b Chief Board of Direct Taxes

c Common Board of Direct Taxes d Chairman of Direct Taxes

5 Expand ―MODS

a Multi Open Deposit Scheme b Multi Option Deposit Scheme

c Maximum Open Deposit d Multiple Option Deposit

Scheme Scheme

6 Expand PAIS

a Personal Accident Insurance b Public Accident Insurance

Scheme Scheme

c Personal Accident Insurance d None of these

Service

7 Expansion of NACH

a National Auto Clearing Hub b National Auto Cash Hub

992
 c National Auto Cash House d National Automated Clearing
House

8 Expand VPIS

a Value Paper Inventory Scheme b Value Paper Inventory System

c Value Paper Invention Scheme d Value Paper Invention System

9 Expand NPCI

a National Payment Centre of b Notion Payment Club of India

India

c National Payment Corporation d National Payment Company of

of India India

10 Expand MMID

a Mobile Money Identifier b Mobile Money Indemnity

c Mobile Money Identity d Mobile Money In Department

11 Expand EOD

a End of Date b Evaluation of Delivery

c End of Day d Extension of Delivery

12 Expand PAN

a Permanent Account Number b Permanent Advance Number

c Personal Account Number d None of these

13 Expand AEPS

a Account Enable Payment b Aadhar Enable Payment

System system

c Anywhere Electronic Payment d None of these

Solution

14 Expand NPCI

a New Payment Corporation of b New Payment Co-operative

India Institute

c National Payments Corporation d National Payment Co-

of India operative Institute

993
15 Expand SEBI

a Securities Excess Board of b State Excise Board of India

India

c State Exchange Board of India d Securities and Exchange

Board of India

16 Expand GBSS

a Government Business b Government Business

Software Solution Software

c GAD Business Software d None of these

System

17 Expand RFIA

a Real Focus on Internal Audit b Remote Focus on Internal

Audit

c Risk Focussed Internal Audit d None of these

18 Expand RBOSA

a Risk Based Offsite b Risk Based Offsite Audit

Assessment

c Risk Based Onsite Audit d None of these

19 Expand RADAR

a Remote Application for b Remote Audit for Dynamic

Dynamic Assessment of Risk Assessment of Risk

c Risk Audit Detection d None of these

Automated Report

20 Expand CTS

a Cheque Transaction System b Cash Transaction System

c Cheque Truncation System d None of these

994
 KEY to Abbreviations - MCQs

1 A 2 D 3 B 4 A 5 B

6 A 7 D 8 B 9 C 10 A

11 C 12 A 13 B 14 C 15 D

16 A 17 C 18 B 19 A 20 C

995
 Customer Value Enhancement

1 Customer Value Enhancement Business Unit comes under which of

the following verticals in Corporate Centre
a) MD (R&DB) b) MD (Global Banking & Subsidiaries)
c) MD (Commercial Clients & IT) d) MD (Stressed Assets, Risk &
Compliance)
2 Customer Value Enhancement Business Unit is headed by _________in
Corporate Centre
a) Dy. Managing Director b) Chief General Manager
c) General Manager d) Managing Director
3 The number of Life Insurers with whom the Bank can act as Corporate Agent
is
a) One b) Three
c) Four d) Two
4 SBI Life Insurance is a joint venture between State Bank of India and
a) Amundi b) Insurance Australia Group (IAG)
c) Societe Generale d) BNP Paribas Cardif
5 All “Individual” Policies of SBI Life are being marketed only by employees
licensed by IRDAI. Such employees are called as
a) Certified Insurance Facilitators b) Insurance Agent
c) Insurance Brokers d) Specified Persons (SP)

6 SBI General Insurance Company was formed as a joint venture of SBI with
a) Amundi b) BNP Paribas Cardif
c) Insurance Australia Group (IAG) d) Societe Generale

7 General insurance “individual” products can be sold only through trained

and qualified employees of the Bank, called
a) Certified Insurance Facilitators b) Specified Persons (SP)
(CIFs)
c) Insurance Solicitor d) Agent
8 SBI has tie ups with which of the following Asset Management Companies,
for distribution of their various Mutual Fund schemes

a) HDFC Asset Management b) Tata Asset Management

Company Limited Limited

c) Franklin Templeton Asset d) All of the above

Management Company Pvt.
Ltd.

SBI Cards & Payment Services Pvt Ltd (SBICPSPL), is a joint venture
between State Bank of India, the Country's oldest and largest bank, and
996
 a) BNP Paribas Cardif b) CA Rover Holdings, an Affiliate of
Carlyle
c) Societe Generale d) Amundi

10 The Bank, being a corporate agent has which of the following

responsibilities
a) be responsible for all acts of
omission and commission of its
principal officer and every specified
person;
b) ensure that no prospect is
forced to buy an insurance
product;

c) enter into agreements with the d) All the above

insurers in which the duties and
responsibilities of both are defined
11 Which of the following is not one of the Code of Conduct to be followed by
Specified Person
a) disclose the scales of commission b) inform promptly the prospect about
in respect of the insurance product the acceptance or rejection of the
offered for sale, if asked by the proposal by the insurer;
prospect;
c) identify himself and disclose his d) Disclose the Branch Target to win
registration/ certificate to the the sympathy of the prospect
prospect on demand;
12 Which one of the following is not a post-sale Code of Conduct of a
Corporate Agent with regard to Customer Value Enhancement Business
a) advise every individual policyholder b) ensure remittance of the premiums
to effect nomination or assignment by the policyholders within the
or change of address or exercise of stipulated time, by giving notice to
options the policyholder orally and in
writing.
c) ensure that its client is aware of the d) Check with the customer if he/she
expiry date of the insurance even if for mobilizing further business
it chooses not to offer further cover
to the client;
13 On registering with AMFI, the employee gets a EUIN. What does EUIN stand
for?
a) Employee Universal Identification b) Employee Unique Identification
Number Number
c) Employer Universal Identification d) Employer Unique Identification
Number Number
14 Agents/ Distributors of Mutual Fund units are required to have which of
the following in order to market Bank’s identified Mutual Funds Products
a) NISM-Series-V-A: Mutual Fund b) Registration from AMFI (EUIN)
Distributors Certification Exam
c) Both d) Either (a) or (b)
15 Employees who have attained 50 years or 10 years’ experience in distribution
of mutual fund products as on 31st May 2010 can, instead of going for NISM
exam, has to do which of the following to obtain Mutual Fund Distribution
Certificate.
997
 a) Appear for a one day Continuing b) At the discretion of the SBI & SBI
Professional Education (CPE) Mutual Fund
session
c) Such employees can market Mutual d) No such relaxation available
Funds without any such
requirement
16 For strengthening need-based selling for sale of third- party products the
framework for ______________________of the third- party products has been
devised by the Bank.
a) “Assessment of Business Potential b) “Assessment of Business coverage
and Customer Acquisition” and Relevance”
c) “Assessment of Suitability and d) “Assessment of Business Potential
Appropriateness” and Customer Coverage”
17 Which of the following is not defining Mis-selling?
a) Product features not explained in b) Consent of Customer not taken and
clear terms; promising unclear, Incomplete need analysis, products
incomplete, misleading information, not sold as per risk profile.
omission of key information,
miscommunication of fee or
charges, communicating
assured/guaranteed returns.

c) Forced selling with other Banking d) Disclosure of grievance redressal

products. mechanism
18 Which of the following SBI Life products have the highest Product Risk
Grade for the customer?
a) Smart Scholar b) Smart Privilege
c) Smart Shield d) Saral Swadhan Plus
19 Which of the following SBI Life products have the lowest Product Risk Grade
for the customer:
a) Shubh Nivesh b) Retire Smart
c) Saral Swadhan Plus d) Smart Privilege
20 ‘Arogya Premier’ is a product of which of our Bank’s JV subsidiary
a) SBI Life b) SBI General
c) SBI Mutual Funds d) SBI Cards
21 Which of the following products of SBI General covers ‘Fire & Burglary’ risk
a) Simple Home Insurance b) Personal Accident Insurance (PAI)
c) Loan Insurance d) SME Insurance
22 Which of the following SBI Mutual Fund products has the highest risk
and also promises highest returns for the customer
a) SBI Magnum Equity ESG Fund b) SBI Debt Hybrid Fund
c) SBI Short Term Debt Fund d) SBI Liquid Fund
23 Spot the odd man out:
a) SBI Blue Chip b) SBI Magnum Multicap Fund
c) SBI Small Cap Fund d) SBI Liquid Fund
24 Which of the following SBI Mutual Funds is in the correct order of Risk-Return
Matrix
a) Debt, Equity, Hybrid, Liquid b) Equity, Liquid, Hybrid, Debt
998
 c) Liquid, Equity, Hybrid, Debt d) Equity, Hybrid, Debt, Liquid
25 The SBI Mutual Fund product which offers benefits under Sec. 80 C of
Income Tax Act is
a) SBI Equity Savings Fund b) SBI Thematic Funds like Healthcare
Opportunities etc.
c) SBI Magnum Tax Gain Scheme d) SBI Corporate Bond Fund
26 Which of the following SBI Mutual Fund products aims to provide returns by
identifying profitable opportunities between the spot and derivatives market
segments
a) SBI Arbitrage Opportunities Fund b) SBI Debt Hybrid Fund
c) SBI Focussed Equity Fund d) SBI Magnum Tax Gain Scheme
27 Which of the following Equity Funds of SBI Mutual Funds has the highest
risk and also promises highest returns for the customer
a) SBI Focused Equity Fund b) SBI Thematic Funds like Healthcare
Opportunities etc.
c) SBI Magnum Midcap Fund d) SBI Equity Hybrid
28 Customers who look for investing in securities maturing on the next business
day can be suggested with which of the following SBI Mutual Fund Products

a) SBI Blue Chip b) SBI Magnum Tax Gain Scheme

c) SBI Small Cap Fund d) SBI Overnight Fund
29 Mutual funds which have investment exposure both in Equity & Debt
securities are called as

a) Thematic Funds b) Fusion Funds

c) Fund of Funds d) Hybrid Funds
30 Equity Mutual funds which invest in a particular Industry like Banking,
Healthcare, Finance, etc are called as
a) Thematic Funds b) Fusion Funds
c) Fund of Funds d) Hybrid Funds
31 Those Mutual Funds which trade like a common stock on a stock exchange
are known as _____________________
a) Thematic Funds b) Equity Funds
c) Exchange Traded Funds d) Debt Funds
32 The Regulatory authority for SBI Mutual Fund is
a) RBI b) Govt. of India
c) SEBI d) IRDA
33 The funds which invest in the same pattern as popular stock market indices
like CNX Nifty Index and S&P BSE Sensex are known as
a) Equity Funds b) Index Funds
c) Sector Funds d) Hybrid Funds
34 The funds which invest in Central and State Government securities and are
best suited for the medium to long-term investors who are averse to risk are
a) Index Funds b) Sector Funds
c) Gilt Funds d) Debt Funds
35 Investors can redeem a fixed amount, a fixed number of units or all returns
above certain base level. This mode of redemption is called as__________
a) Systematic Investment Plan (SIP) b) Lumpsum
999
 c) Systematic Transfer Plan (STP) d) Systematic Withdrawal Plan (SWP)
36 Investors can benefit by investing at an average price over a period by
investing through
a) Systematic Investment Plan (SIP) b) Lumpsum
c) Systematic Transfer Plan (STP) d) Systematic Withdrawal Plan (SWP)
37 The products of the five SBI JV (Life, General, Cards, Mutual Funds & Capital
Markets) offered through _____________ of SBI YONO
a) Online Market Place (OMP) b) Financial Super Store (FSS)
c) Digital Banking d) None of the above
38 Which of the following SBI Credit Card variants are available in SBI YONO
a) SBI Card Elite b) Simply Save SBI Card
c) STYLEUP contactless card d) All of the above
39 Which of the following products of SBI Credit Card is not a co-branded credit
card
a) SBI Card Prime b) IRCTC SBI Card
c) Chennai Metro Card d) Yatra SBI Card
40 Which of the following Products and Services available on YONO for SBI
General Insurance
a) Aarogya Premier b) Critical Illness
c) Private Car Insurance d) All the above
41 Which of the following Services available on YONO for SBI Life Insurance
a) Purchase new policy b) Need Analysis
c) Linking of viewing of existing Policy d) All of the above
42 Which of the following Services available on YONO for SBI Mutual Fund
a) Additional Purchase of funds (Lump b) Opening an account (Folio)/Zero
sum/ SIP) Balance Folio.
c) Redemption/STP/SWP d) All of the above
43 Which of the following Products and Services available on YONO for SBI
CAP Securities
a) Link Demat & Trading Account b) View Demat Account & Trading
Portfolio
c) Apply for Trading & Demat Account d) All of the above
44 Risk of Early Death is covered by ______________ and Risk of Living Long is
covered by ________________
a) Life Insurance & Pension Plan b) Pension Plan & Life Insurance
c) Mutual Funds & Credit Cards d) Life Insurance & General Insurance
45 Which of the following SBI Life Insurance products is pure Term Insurance
plan:
a) Shubh Nivesh b) Saral Shield
c) RinnRaksha d) Smart Income Protect
46 Which of the following SBI Life Insurance products is Loan Protection
Insurance plan:
a) Shubh Nivesh b) Saral Shield
c) RinnRaksha d) Smart Income Protect
47 Which of the following SBI Life products is not a Group Insurance plan:
a) Sampoorn Suraksha b) Swarna Jeevan
c) Pradhan Mantri Jeevan Jyoti Bima d) Smart Shield
Yojana
1000
48 Which of the following SBI Life Insurance products is an Insurance plan for
Employer-Employee groups:
Pradhan Mantri Jeevan Jyoti Bima b) Kalyan ULIP Plus
Yojana
RinnRaksha d) Saral Shield
49 Which of the following SBI Life Insurance products is for Employers/State
Govt/Central Govt/Trustees to take care of employees’ retirement benefit
schemes of Gratuity, Leave Encashment and Superannuation
a) Smart Income Protect b) RinnRaksha
c) CapAssure Gold d) Pradhan Mantri Jeevan Jyoti Bima
Yojana
50 Which of the following SBI Life Insurance products is to help employers
manage the employee Pension scheme through the transfer of their liability:
a) Swarna Jeevan b) CapAssure Gold
c) RinnRaksha d) Saral Shield

1001
 ANSWERS

Q 1 2 3 4 5 6 7 8 9 10
ANS A C B D A C B D B D
Q 11 12 13 14 15 16 17 18 19 20
ANS D D B C A C D B C B
Q 21 22 23 24 25 26 27 28 29 30
ANS D A D D C A B D D A
Q 31 32 33 34 35 36 37 38 39 40
ANS C C B C D A B D A D
Q 41 42 43 44 45 46 47 48 49 50
ANS D D D A B C D B C A
Q 51 52 53 54 55 56 57 58 59 60
ANS

1002
 PRE AND POST SANCTION

1 In which of the following cases 2 TIRs are not required?

a) Properties acquired through Gift b) Properties sold by Power of
deed. attorney holder.
c) Home Loan more than 5 Cr and d) Second sale and Home Loan is
RERA registration is available more than Rs.50 lacs
2 In which case two valuation reports are required?
a) Where the value of property is Rs.50 b) Where the Home Loan is Rs.50
lacs & above. lacs & above.
c) Where the Home Loan is Rs.1 Cr d) All the above
and above.
3 In which case 2 CIC report is required for Home Loan?
a) Home Loan limit above Rs.1 Cr. b) Home Loan limit above Rs.50 lacs.
c) Home Loan limit above Rs.20 lacs. d) Home Loan limit above Rs.10 lacs
4 Which of the following is a Credit Information Company?
a) Credit Information Bureau Limited b) Equifax Credit Information Services
Pvt. Ltd
c) Experian Credit Information d) All the above.
Company of India Ltd
5 CIBIL shows repayment history in borrower’s account for …… .
a) 48 months b) 36 months
c) 24 months d) 12 months
6 In case of Home Loan amount is Rs.1 cr & above, a search for ….. years to be
obtained by Bank’s empaneled advocate.
a) 30 years b) 15 years
c) 13 years d) 13 years, however in case of any
ambiguity, 30 years
7 Coordination desk is a part of ………….
a) HLST b) RBO
c) Administrative Office d) RACPC
8 Where the legal / valuation / inspection report is required from another center, the
TAT for valuation report is ……..
a) 6 days b) 5 days
c) 4 days d) 2 days

1003
9 Discretionary Powers to approve deviation for any default/write-off appearing
in CIBIL in respect of non-Credit Card dues above Rs. 50,000/= (Applicable only
for Housing Loan) is
a) CGM (Circle) b) GM (Network)
c) DGM (B&O) d) No discretion available, proposal to
be rejected
10 Proper identification of the property can be done during the pre-sanction
survey with the help of
a) Borrower b) Valuer
c) Boundaries d) Neighbour
11 Before execution of documents the signatures of the borrowers need to be
tallied with that on the -------------
a) PAN Card b) Aadhar Card
c) Driving License d) Application form
12 The minimum and maximum members in Public limited company
a) Min-7 and maximum-500 b) Min-7 and maximum -200
c) Min-7 and maximum -unlimited d) None of the above
13 At the time of sanction of credit facilities, Valuation report should not be
older than _____ months.
a) 3 b) 6
c) 9 d) 12
14 A letter, should be sent to all the borrowers/guarantors, who had mortgaged
their properties with the Bank, stating that they have to collect the original title
deeds within ...........of full and final payment of Bank’s dues failing which
applicable Safe Custody Charges would be levied
a) 1 month b) 2 months
c) 3 months d) 6 months
15 Fair Practices Code or Fair Lending Practices Code (FLP) is envisaged by
a) Ministry of Finance b) RBI
c) BCSBI d) IBA
16 As a part of sample check, the Branch /CPC should verify ……..% of the
cases handled during the period by the outside agencies, as a cross check
of the quality of their services of address verification
a) 5 % b) 2 %
c) 3% d) 1 %
17 In case RERA registration is not available, 2 Title Investigation reports are
required for home loans where loan amount
a) Rs. 1 cr and above b) Rs. 5 cr and above
c) Rs. 50 lacs and above d) Rs. 2 cr and above
18 In case of divergence of opinion of two advocates in TIR

1004
 a) Opinion of law officer required b) Both report to be sent to senior
lawyer for his opinion
c) Opinion given by senior advocate d) Again entrusted to two advocate
will prevail
19 In case of Education Loans in the joint names of student and guardian,
whose PAN Card is required to be obtained
a) Both student and guardian b) Pan card is not required
c) PAN card of guardian d) Pan card of student
20 Norms regarding obtention of certified copies of Title Deeds directly from
the office of the Sub-registrar is waived for Home Loans ______
a) Up to Rs. 30 lacs b) In all cases
c) Up to Rs. 50 lacs d) Up to Rs. 1 cr
21 If our exposure is collaterally secured by the following type(s) of property, a
satisfactory Title Investigation Report (TIR) from two different empaneled
advocates should be obtained, irrespective of amount in all segments
a) Properties sold by POA to our b) Properties offered by Third party
borrower/guarantor guarantors
c) Properties acquired by gift deed d) All the above
22 For Home Loans , certified copies of title deeds including minimum ...........
previous chain title documents (falling within the search period) and/or all
chain title documents executed within ........ period from the date of the
current title deed directly from the Sub-registrar’s office should be obtained
a) 2,3 years b) 3,30 years
c) 3,13 years d) 2,13 years
23 While arriving at the Net Monthly Income of the customer in case of Housing
loan, other income, regular income from all sources including performance/
production linked incentives; bonus, overtime etc. can be considered, in
whole or in part, on the basis of
a) The average of the last two years, b) The average of the last 6 months,
to arrive at the total eligible loan to arrive at the total eligible loan
amount amount
c) The average of the last three years, d) The average of the last two years,
to arrive at the total eligible loan provided the customer is an
amount employee of a reputed PSU/MNC,
to arrive at the total eligible loan
amount
24 Proper identification of the property can be done during the pre-sanction
survey by _____
a) Physical boundaries in the map/TIR Enquiry from the Neighbours
c) Accompanying the Borrower Accompanying the Valuer

1005
25 The officer entrusted with the job of Pre-Sanction Survey (PSS) will identify
the borrower _______
a) By showing his/ her photograph to b) On the basis of proof of
the neighbours and making discreet identification submitted by the
enquiries about his/ her credentials borrower along with the loan
application
c) By directly visiting the work place d) Any of the above
for identification
26 Legal Report for a property in the same centre is to be obtained within a TAT
of __________ days
a) 4 b) 2
c) 5 d) 3
27 Valuation Report for a property situated in the same centre is to be
obtained within a TAT of __________ days
a) 4 b) 1
c) 3 d) 2
28 Under no circumstances, the Advocate should submit a TIR certifying clear
and marketable title of the property ______
a) With conditions or stipulations to be There is no such restriction
complied
c) Without payment of stipulated fees Without seal of his firm on the TIR
29 _______ is not considered while calculating the net monthly income
a) CCA Special allowance
c) Monthly Transportation Expenses LTC being paid on the basis of
certificate
30 For a Central government salary package customer, which Branch is
authorised to process xpress credit proposal
a) Branch near place of posting or Only branch where salary account
where salary account is maintained is maintained
c) Branch near residence any Branch
31 CERSAI stands for __________
a) Central Registrar of Securitization Central Registry of Securities,
Assets Reconstruction and Security
Interest of India
c) Central Registration of Securities Central Registry of Securitization,
Assets and Interest Asset Reconstruction and Security
interest of India
32 Which sections of NI Act 1881 deals with initiating of action in case of
bouncing of 1st PDC?
a) 138 & 139 b) 140
c) 146 d) All of the above
33 Failed SI Report is generated in CBS system at which frequency
1006
 a) Daily b) Weekly
c) Fortnightly d) Monthly
34 In case of Auto Loan a copy of insurance policy for 1st year to be obtained
and retained with loan documents and for subsequent years, copy of
insurance policy may not be obtained. This relaxation is not applicable for
loans of Rs.______
a) 20 lakh and above b) 25 lakh and above
c) 30 lakh and above d) 35 lakh and above
35 In case of independent house under construction, property insurance may
be taken at the time of
a) last disbursement b) first disbursement
c) Possession d) Getting O.C.
36 An un-stamped or under stamped document will be inadmissible as evidence
as per section
a) 35 of RBI Act, 1934 b) 35 of Indian Contract Act, 1872
c) 35 of Indian Registration Act d) 35 of Indian Stamp Act, 1899
37 If date of document appears to be prior to the date of stamp duty, such
document would be treated as invalid on the grounds that it has not
been_____
a) Executed b) Properly executed document
c) Properly dated d) Duly stamped
38 Document should not bear ____date(s)
a) double date b) impossible date
c) back dates d) All the above
39 The minimum designated partners and maximum partners in LLP
a) Min 2 and Max-20 b) Min-2 and Max-200
c) Min-2 and Max-10 d) Min 2 and Maximum- no ceiling
40 In case of imported cars with full advance payment conditions, which is the
best method of disbursement to protect interest of the Bank and Borrower?
a) Direct payment to foreign supplier b) Direct payment to local dealer
c) By bank Guarantee d) By Letter of Credit
41 In case of Max gain home loan account at what stage cheque book / INB facility
to be given to the borrower?
a) On sanction of the limit On execution of security documents
c) On disbursement of first installment On full disbursement
42 Which classification of loan account serves the purpose of Early Warning
Signals?
a) RG classification b) Probable NPA Classification
c) IRAC Classification d) SMA classification
43 How many copies of ECS mandate for repayment of EMI to be obtained from
the borrower?

1007
 a) 1 b) 3
c) 5 d) 7
44 Which important documents are required to be obtained during Education
period from the student?

a) Bonafide Certificate b) Bonafide certificate & Mark sheet

c) Both of the above d) Bonafide certificate and mark sheet
of previous examination & receipt of
latest fees paid to the Institution

45 Randomly selected ____% of the Home Loan accounts (IRAC: Standard)

should be verified by Inspection every month?
a) 1 b) 3
c) 5 d) 7
46 In case of Xpress Credit Loan Account, a letter needs to be sent to
_______immediately after sanction of the loan?
a) Employer b) Borrower
c) Controlling Authority d) DDO
47 To facilitate tracking with Credit Information Companies, the details of which
document are required to be fed in CBS?
a) Aadhar Number b) PAN Card details
c) Email ID of the borrower d) C-KYC details of the borrower
48 When a cheque is dishonored the branch / CPC has to give a notice in writing
to the drawer within ___days of the receipt of information by it from the bank
regarding return of cheque.
a) 10 b) 15
b) 20 d) 30
49 Which is first and most important action on receipt of PDCs
a) Entries in PDC Register b) Entries in PDC Register &
Authentication of the same
b) Putting round seal of the Branch d) Putting the crossing seal of the
/ CPC Branch /CPC
50 A shell company is an entity that has _____
a) No active business b) usually exists only as a vehicle for
another company
c) Both 1 & 2 above d) None of the above

For a loan proposal of Rs.11 lacs, What are Bank's instructions in respect of
51 i-Probe search?
a) Optional b) Mandatory
c) Not Mandatory d) None of the above

1008
52 How many Credit Information reports is/are required for processing secured
loans limit (in MSME Sector) of Rs. 26 lacs?
a) Note required b) 1
c) 2 d) 3
53 CMR report is in addition to two Credit Information Companies (CICs) reports
for processing secured loans limit (MSME Sector) > Rs. 10 lacs ?
a) False b) True
c) Cannot say d) As per discretion of sanctioning
authority
54 R&DBG will normally handle SME proposals for exposures upto Rs. -----
a) 10 crores b) 30 crores
c) 50 crores d) 100 crores
55 Opinion Reports on Borrowers and Guarantors should be updated at
________ interval
a) Once in 6 months b) Annually
c) Once in two years d) Once in three years
56 NOC issued for opening the current account should be reviewed _________.
a) Once in 6 months b) Once in a year
c) Once in two years d) No need to review the NOC
57 I-Probe application has been developed by___
a) SBI b) RBI
c) CIBIL d) None of the above
58 Which of these is not required to be collected by the officials conducting pre-
sanction survey of a borrower?
a) Educational qualifications of the b) Number of schools going children
borrower
c) Landlord’s KYC, if residing in a d) All the above information is required
rented house to be collected
59 To establish the genuineness, track record and reputation of a builder in
terms of timely completion of quality projects, reference cannot be made to
a) Builder’s Bank b) Few other reputed builders in the
area
c) Suppliers of building material to the d) Owners of the units of the builder's
project completed projects
60 In case of doubt regarding the income tax returns filed by the borrower, the
Branch should
a) Engage the services of a chartered b) Engage the services of an
accountant other than the chartered empaneled chartered accountant
accountant of the applicant for for verification of the income tax
verification of the income tax return return with the Income Tax
with the Income Tax Department Department

1009
 c) Engage the services of a Tax d) Any one of the above
Consultant/ Lawyer for verification
of the income tax return with the
Income Tax Department
61 The Minimum and maximum members in Private Limited company
a) Min 2 and Max -500 b) Min 2 and maximum 20
c) Min 2 and Max-200 d) Min-2 and no cap for maximum
62 While reviewing a Title Investigation Report (TIR) received from Bank’s
empaneled Advocate, which of these facts will generally not affect the
mortgage ability of the property?
a) The property is covered under b) The Property/ Plot is situated on an
Trust Property Act. agriculture land
c) The property is held on lease d) All the above will affect the
mortgage ability of the property
63 If there are a number of housing loan cases of same type in an area, the
investigation of the title of the properties/ valuation should be handed over to
a) different Advocates/ valuers and b) same set of Advocates/ valuers to
Branches should not rely upon maintain uniformity in the reports
single Advocate/ Valuer
c) different Advocates/ valuers and d) at least 2 empaneled Advocates/
one of the reports should also be valuers irrespective of the loan
vetted by the law officer at AO/ amount
LHO
64 Satisfactory Title Investigation Report from two different empaneled
advocates should be obtained in case of Home Loans of
a) Rs. 1.00 crore and above b) Rs. 50.00 lakh and above
c) Rs. 30.00 lakh and above d) Rs. 75.00 lakh and above
65 Scrutiny of Gift Deed and Power of Attorney (PoA), pertaining to the title of
the property, by Bank’s Law Officer is waived in case of Home Loans below
a) Rs.50.00 Lakh b) Rs. 30.00 Lakh
c) Rs. 75.00 Lakh d) Rs. 1.00 crore
66 Norms regarding obtention of certified copies of Title Deeds directly from the
office of the Sub-registrar is waived for Home Loans
a) Up to Rs.50.00 lakh b) Below Rs.1.00 crore
c) Up to Rs.30.00 lakh d) Certified copies are required to be
obtained in all the cases.

67 In case of Housing Loans, a satisfactory Title Investigation Report (TIR) from

two different empaneled advocates, should be obtained where
a) RERA registration is available and b) RERA registration is not available
Loan amount is above Rs.5 crores and Loan amount is Rs.3 crore and
above
1010
 c) there is a case of Second Sales and d) All the above are true
Loan amount is Rs.5 crore and
above.
68 Annexure A pertaining to Title Investigation Reports (TIRs) is meant for
a) Title investigation report format to b) Checklist for the guidance of the
be filled by the Branch/Unit advocates verifying the title to the
properties offered as security
c) Certificate of Title on the Basis of d) Checklist on scrutiny of TIR by the
Certified copies of the Title Deeds Branches

69 Annexure C pertaining to Title Investigation Reports (TIRs) is meant for

a) Title investigation report format to b) Certificate on title to be submitted
be filled by the Branch/Unit by the Advocate
c) Certificate of Title on the Basis of d) Checklist on scrutiny of TIR by the
Certified copies of the Title Deeds Branches
70 Mr Raghavendra has his own piece of land worth Rs. 40 lakhs. He wants to
construct a house on it and the estimated cost of construction is Rs. 30 lakhs.
He wants maximum quantum of loan. What is the maximum loan that can be
sanctioned to him?
a) RS.30 Lacs b) Rs. 27 lacs
c) Rs.56 lacs d) Rs.63 lacs
71 Under the discretionary powers to permit concession in Interest Rates on Car
Loans of Rs. 20.00 Lacs and above, which authority has the powers to reduce
the interest rates by up to 30 basis points below Card Rates?
a) DGM (B&O) b) GM(NW)
c) CGM(Circle) d) DMD(NBG)
72 Courses offered in which of these countries are generally not eligible under
SBI Global Ed-vantage scheme?
a) UK b) China
c) Hong Kong d) Australia
73 The second Credit Information Company (CIC) report required for Auto Loans
above Rs. 5.00 Lacs will be considered from
a) CIBIL b) Experian
c) Equifax d) CRIF Highmark
74 Which of these have to be referred to as part of due diligence in case of pre-
sanction process in SME advances?
a) i-Probe b) CRILC
c) EPFO Site for defaulting employer d) All the above
company
75 Which of these restrictions/ factors have to be looked into while assessing an
SME advance proposal?
1011
 a) Industry exposure b) Group exposure
c) Credit Risk Rating d) All the above
76 Prescreening reports from M/s Cubictree technology Solutions Pvt Ltd
(CTSPL) to be obtained for all proposal for _____
a) Rs. 5 crores and above b) Above Rs. 5 crores
c) Rs. 1 crores and above d) Above Rs. 1 Crore
77 Expand CUE
a) Credit Undertaking Engine b) Credit Underwriting Engine
c) Credit Usance Engine d) Credit Understanding Engine
78 Expand CMA
a) Credit Monitoring Ability b) Credit Monitoring Access
c) Credit Monitoring Appraisal d) Credit Monitoring Arrangement
79 Inspection Report Format
a) FSM-1 b) FSM-2
c) FSM-4 d) FSM-6

80 FFR-1 to be submitted within

a) 45 days b) 52 days
c) 60 days d) 67 days
81 FFR-2 to be submitted within
a) 90 days b) 52 days
c) 60 days d) 67 days
82 FFR-I and FFR-II to be submitted by unit having exposure of Rs.
a) 5 Cr and above b) 2 Cr and above
c) 10 Crores and above d) 25 Crs and above
83 How many modules are there in CUE
a) 7 b) 6
c) 5 d) 8
84 Term loan indebtedness of Rs.5 Cr and above verification of assets to be
conducted within _____ days
a) 10 b) 15
c) 7 d) 30
85 Stock Statement to be submitted within
a) 7 days b) 10 days
c) 20 days d) 15 days
86 A company has export sales turnover of Rs. 50 Cr. From which return it can
be verified?
a) GR Form/ Softex Declaration form b) GST/VAT return
c) SEBI d) None of the above
87 At the time of sanction of credit facilities, valuation report should not be older
than

1012
 a) 3 months b) 6 months
c) One year d) 9 months
88 Legal audit is applicable for exposure of credit facilities

a) Rs. 10 crs and above b) Rs. 1 cr and above

c) Rs. 2 Crores and above d) Rs. 5 crores and above
89 Expand LLMS
a) Loan Lifecycle Maintenance b) Large Loan Management system
System
c) Large Loan Monitoring system d) Loan Lifecycle Management
System
90 LOS Stands for
a) Loan Originating system b) Loan outstanding Source
c) Limit Out Standing d) Liability Out Standing
91 Hurdle rating in CRA
a) SB-11 b) SB-15
c) SB-10 d) SB-16
92 All Non-Performing Assets (NPA) shall be directly assigned with the rating of
a) SB-10 b) SB-15
c) SB-11 d) SB-16

93 It is mandatory to obtain External Commercial Rating (ECR) of borrower for

all exposures
a) Above Rs.10 Crores b) Above Rs. 20 Crores
c) Above Rs. 25 Crores d) Above Rs. 50 Crores
94 How many domestic ECR agencies are there in India
a) 5 b) 6
c) 7 d) 8
95 _____ is applicable for eligible SME proposals up to Rs. 50 Crs
a) Project Vivek b) Project CUE
c) Project Lotus d) Project PACE
96 Threshold limit for Exit policy is
a) Rs. 1 Cr and above b) Rs. 10 Crs and above
c) Rs. 2 Cr and above d) Rs. 5 Crs and above
97 Creation of Equitable Mortgage comes under
a) RBI Act,1934 b) Transfer of Property Act,1882
c) BR Act,1949 d) SARFAESI Act,
98 How many years of search report is required in case of properties belonging
to Government, local authorities
a) 13 years b) 10 years
1013
 c) 30 years d) Not required
99 In case of Education loans of above Rs. 4 lacs, second CIC to be obtained
from
a) Equifax CIC b) CRIF High Mark
c) Experian CIC d) Required for Rs.10 lacs and above
100 In case of flats/villas under construction and developed by builders, property
insurance to be taken
a) At the time of initial disbursement b) After completion of construction
c) After execution of loan document d) Any time during construction

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10

ANS D C D D B A D C D C

Q 11 12 13 14 15 16 17 18 19 20

ANS D C A B C B A A A D

Q 21 22 23 24 25 26 27 28 29 30

ANS D A A A B A D A D A

Q 31 32 33 34 35 36 37 38 39 40

ANS D D A A B D D D D D

Q 41 42 43 44 45 46 47 48 49 50

ANS D D B D C D B B D C

Q 51 52 53 54 55 56 57 58 59 60

ANS B C B C B B A C C A

Q 61 62 63 64 65 66 67 68 69 70

ANS C C A A D B D A B A

1014
Q 71 72 73 74 75 76 77 78 79 80

ANS C B B D D A B D D B

Q 81 82 83 84 85 86 87 88 89 90

ANS D C A B C A A D D A

Q 91 92 93 94 95 96 97 98 99 100

ANS C D D C A D B C B B

1015
 Financial Results, Policy Guidelines & Others

1 Total deposits as at the end of financial year 31.03. 2022 stands at

a) Rs.32,41,621 crores b) Rs 37,06,344 crores

c) Rs.39,11,386 crores d) Rs. 40,51,534 crores

2 Total advances as at the end of financial year 31.03. 2022stands at

a) Rs 27,33,967crores b) Rs.23,94,409 crores

c) Rs.24,85,877 crores d) Rs.23,25,290 crores

3 Net profit for the year ended 31.03 2022 is

a) Rs. 31,676 crores b) Rs.24,488 crores

c) Rs.20,891 crores d) Rs.19,950 crores

4 SBI’s Gross NPA level as at the end of Mar 2022

a) 3.97% b) 5.73%

c) 6.15% d) 7.53%

5 SBI’s Net NPA level as at the end of Mar 2022

a) 1.81% b) 1.73%

c) 1.02% d) 2.23%

6 Expenses to Income (Operating Expenses to Total Net Income) Ratio 2022

for FY was

a) 50.18% b) 53.31%

c) 49.13% d) 52.46%

7 Profit Per employee (`in 000) for FY 2022 was

a) 579 b) 470

1016
 c) 1292 d) 511

8 Capital Adequacy Ratio (Under BASEL II) of State Bank of India stood
at _____ at the end of March 2022.

a) 13.85% b) 13.12%

c) 12.79% d) 13.94%

9 Total number of branches in SBI as on 31.3. 2022

a) 22,141 b) 22,266

c) 22,986 d) 25,456

10 EPS Of State Bank Of India for the FY 2021-22

a) 35.49 b) 22.87

c) 33.44 d) 24.92

11 What is the Market share of SBI in POS for FY 2021-22

a) 15.15% b) 33.33%

c) 13.43% d) 18.50%

12 What is the Share of Transactions on Alternate Channels for FY 2021-

22

a) 55% b) 95.50%

c) 91% d) 62%

13 Total number of branches in SBI as on 31.3. 2022

a) 22,266 b) 45253

c) 39589 d) 59542

14 Bank’s current Stake in SBI Life for FY 2021-22

a) 62.10% b) 57.60%

c) 55.48% d) 45.17%

15 Share of SBI in SBI Cards & Payment Services Pvt ltd

1017
 a) 69.39% b) 100%

c) 86.18% d) 69.51%

16 SBI’s share in SBI Mutual Fund Trustee Company Pvt Ltd

a) 45% b) 100%

c) 86.18% d) 62.10%

17 Bank’s Home Loan Portfolio for FY 2021-22

a) 5,61,651 Cr b) 3,25,486 Cr

c) 4,05,620 Cr d) 2,67,614 Cr

18 Gross Advanceof our Bank was _____ during FY 2021-22 and grew at
5.34%

a) Rs 27,33,967 Crore b) Rs 24,22,845 Crore

c) Rs 22,93,454 Crore d) Rs 17,46,389 Crore

19 Domestic deposits of the Bank for FY 2021-22 grew at the rate of

a) 12.68% b) 12.90%

c) 14.10% d) 9.80%

20 Total number of ATM’s, CDM’s, Recycler in our Bank as on March 2022

a) 60,541 b) 62,414

c) 65,030 d) 48,523

21 Market share of our Bank in ATM network in India as on March 2022

a) 29.80 b) 32.30

c) 27.83 d) 45.23

22 “YONO” was launched on

a) 24.11.2017 b) 15.10.2017

c) 01.12.2017 d) 24.09.2017

1018
23 During FY2021, SBI has been awarded ____ by The Asian Banker for
the second year in a row.

a) Best Payment Bank in India b) Best Cash Management

House in India

c) Best Transaction Bank in India d) All of the above

24 During FY2021, SBI has been awarded ____ by The Asian Banker for
the fourth year in a row.

a) Best Payment Bank in India b) Best Cash Management

House in India

c) Best Transaction Bank in India d) All of above

25 On recommendations of _________ Committee and through passing

of an Act in Parliament, Imperial Bank of India was renamed as State
Bank of India on 1st July 1955

a) Gorewala b) Hilton Young Mission

c) Kelkar d) Ranganathan

26 SBI's Registered Office & Central Accounts Office is in_________

a) Kolkata b) Mumbai

c) Chennai d) New-Delhi

27 Corporate Centre is headed by

a) Chief Financial officer b) Chief Vigilance Officer

c) Chairman d) Chief Technological officer

28 How many Managing Directors (MD) are there under Chairman?

a) 4 b) 5

c) 6 d) 7

29 Chief Vigilance Officer (CVO) reports to

a) DMD & CDO b) DMD & CFO

c) Chairman d) MD & CCRO

1019
30 Strategic Training Unit (STU) is headed by

a) DMD b) CGM (L&D)

c) CTO d) All the above

31 Retail & Digital Banking Group Comprises of ____ Circles

a) 13 Circles b) 17 Circles

c) 16 Circles d) None of the above

32 Circles are headed by

a) Deputy General Manager b) Deputy Managing Director

c) General Manager d) Chief General Manager

33 Circle Management Committee (Cir MAC) is presided by ____

a) CGM b) GM

c) DGM&CDO d) DGM(CFO)

34 BPR is introduced as per the recommendations of which consultancy

organization

a) Rangarajan Committee b) Narasimham Committee

c) McKinsey & Co d) Tata Consultancy Services

35 Stressed Assets Management Group (SAMG), has been set up to take

over all NPAs with outstanding of Rs.____ crore and above.

a) 10 b) 20

c) 25 d) 50

36 The functionality of Loan Origination Software (LOS) refers to

a) Designing a Loan Product using the b) Registration, Processing

software and Generation of Loan
Documents and tracking
status of Loan applications

c) NPA Tracking d) None of these

1020
37 Which is the unit set up by Bank which performs the various services
like receiving voice calls, emails, letters, complaints from the
customers, in addition to accepting the requests for cheque book, fund
transfer, bill payment etc.

a) Liability Centralised Processing b) Contact Centre

Center

c) Complaint Centre d) Outbound Sales Force

38 What is the role of Document Archival Centre (DAC) under BPR?

a) Decongest the Branches by b) Execution of Bank's Loan

removing records maintenance Documents

c) Printing of Bank's Loan Documents d) None of these

39 Which of the following committee will look into and manage the
reduction of liquidity and interest rate risk and optimization of returns?

a) Asset Liability Management b) Inspection and Audit

Committee Management System

c) Bank Risk Management Committee d) Corporate Risk Mitigation

Department

40 Which one of the following is not a Business Group

a) Retail & Digital Banking Group b) Global Banking

c) Commercial Clients Group d) None of the above

41 As per Bank Policy Guidelines ROA (Minimum) for FY 2022-23 is

a) 0.90% b) 0.41%

c) -0.19% d) 0.79%

42 As per Bank Policy Guidelines ROE (Minimum) for FY 2022-23is

a) 10.49% b) 11%

c) 15.93% d) 16.20%

43 As per Bank Policy Guidelines Growth % in CASA for FY 2022-23 is

a) 12.08% b) 10%

c) 11.58% d) 11%

1021
44 As per Bank Policy Guidelines Growth in Deposits YoY – Minimum, for
FY 2022-23 is

a) 9% b) 11.10%

c) 11% d) 10.82%

45 As per Bank Policy Guidelines for FY 2022-23, Cost to Income Ratio to

be below

a) 49.23% b) 51.62%

c) 50.23% d) 51.23%

46 As per Bank Policy Guidelines NIM (Whole Bank) – Minimum, for FY

2022-23 is

a) 3.08 b) 3.18%

c) 3% d) 3.35%

47 As per Bank Policy Guidelines AUCA recovery, for FY 2022-23 is

a) Rs 8300 cr b) Rs 8000 cr

c) Rs 7800 cr d) Rs 7900 cr

48 Start ups finance upto _____ is eligible for PSL

a) Rs 50 cr b) Rs 25 cr

c) Rs 10 cr d) Rs 100 cr

49 SBI has been awarded __________________ for ninth consecutive year

by Global Finance Magazine

a) The Best Trade Finance Provider b) Syndicated Loan House of

(India) –2021 the Year

c) Best Use of Blended Learning d) None of these

50 All State Bank employees, who joined after are covered under NPS.

a) 01.07.2010 b) 01.04.2010

c) 01.08.2010 d) 01.01.2010

51 Bank’s Risk Awareness Day

1022
 a) 1st August b) 26th January

c) 2nd November d) 1st September

52 KYC Awareness Day

a) 1st August b) 1st September

c) 2nd November d) 30th November

53 Computer Security Awareness Day

a) 1st August b) 1st September

c) 2nd November d) 30th November

54 AML CFT Awareness Day

a) 1st July b) 1st September

c) 2nd November d) 30th November

55 Total Deposits as on 30th Sept 2022 in SBI

a) 30.78 lakh Cr b) 41.90 lakh Cr

c) 34.70 lakh Cr d) 31.45 lakh Cr

56 Total Advances as on 30th Sept 2022 in SBI

a) 30.35 lakh Cr b) 23.83 lakh Cr

c) 20.49 lakh Cr d) 29.45 lakh Cr

57 Net Profit for the first half of Fy 2022-23 in SBI

a) 13,265Cr b) 14,131 Cr

c) 9,998 Cr d) 14,339 Cr

58 Net NPA as on 30th Sept 2022 in SBI

a) 2.15% b) 1.12%

c) 0.80% d) 1.54%

Answer

QN 1 2 3 4 5 6 7 8 9 10

1023
 ANS D A A A C B C A B A

QN 11 12 13 14 15 16 17 18 19 20

ANS A B A C A B A A D C

QN 21 22 23 24 25 26 27 28 29 30

ANS A A A C A A C A C B

QN 31 32 33 34 35 36 37 38 39 40

ANS B D A C A B B A A D

QN 41 42 43 44 45 46 47 48 49 50

ANS D C A D B D A A A A

QN 51 52 53 54 55 56 57 58

ANS D A D C B A B C

Priority Sector Lending

1 For the purpose of computation of achievement of the sub target,

Small and Marginal Farmers, Loans up to ₹ ………. lakh to
individuals solely engaged in Allied activities without any
accompanying land holding criteria will be considered.
a) 2 b) 1

c) 5 d) 0.20

2 Loans up to ₹ ………. per borrowing entity to FPOs/FPCs undertaking

farming with assured marketing of their produce at a pre-determined price
is classified under Priority Sector, i.e. Agriculture Farm Credit.

a) 50 Lakhs b) 5 Crores

c) 5 Lakhs d) 50 Crores

3 Loans up to ₹………. Crore to Start ups, as per definition of Ministry of

Commerce and Industry, Govt. of India that are engaged in Agriculture and
Allied Services, confirm to the definition of MSME and are also engaged in

1024
 activities other than Agriculture or MSME will be classified under Priority
Sector.
a) 25 Crores b) 100 Crores

c) 50 Crores d) 5 Crores

4 Loan limits for Renewable Energy have been increased to ……… from the
existing limit of ₹15 Crore
a) 25 Crores b) 30 Crores

c) 50 Crores d) 40 Crores

5 Under Social Infrastructure, lending loans up to a limit of ₹……………. per

borrower for building health care facilities including under ‘Ayushman
Bharat’ in Tier II to Tier VI Centres is now classified under Priority sector

a) 10 Crores b) 1 Crore

c) 5 Crores d) 25 Crores

6 Loans to individuals for educational purposes, including vocational

courses, not exceeding Rs. ……… will be considered as eligible for Priority
Sector Classification.

a) 20 LACS b) 25 LACS

c) 50 LACS d) 200 LACS

7 Housing Loans up to Rs. ………… lakh in metropolitan centers and up to

Rs. ………. lakh in other centers for repairs to damaged dwelling units,
conforming to the overall cost of the dwelling unit will be considered as
eligible for Priority Sector Classification.
a) 15 LACS AND 10 LACS b) 12 LACS AND 10 LACS

c) 10 LACS AND 6 LACS d) 5 LACS AND 2 LACS

8 Loans against pledge/hypothecation of agricultural produce (including

warehouse receipt) for a period not exceeding 12 months subject to a limit
up to ₹………. to be classified as priority

a) 50 LACS b) 25 LACS

c) 200 LACS d) 100 LACS

9 Revised Priority Sector guidelines issued by RBI vide their Circular FIDD.
CO. Plan. BC.5/04.09.01/2020 21 dated 4th September 2020 and the revised
guidelines are operational with effect from ………
a) 01.01.2021 b) 01.10.2020

c) 04.09.2020 d) 01.04.2021

1025
10 Bank credit to registered NBFCs (other than MFIs) towards on lending for
‘Term lending component under agriculture will be allowed up to ₹ ……..
under priority sector
a) 10 lacs b) 25 lacs
c) 50 lacs d) 100 lacs

11 Bank credit to registered NBFCs (other than MFIs) towards on lending for
‘Term lending component under Micro and Small enterprises will be allowed
up to ₹ ……. under priority

a) 1 Million b) 10 Million

c) 1 Billion d) 2 Million

12 Loans to individuals up to ………………. lakh in other than metropolitan

centers for purchase/construction of a dwelling unit per family provided the
overall cost of the dwelling unit in the does not exceed ………... ₹ lakh

a) 35 lakh and 45 lakhs b) 45 lakh and 35 lakhs

c) 25 lakh and 30 lakhs d) 30 lakh and 25 lakhs

13 Bank loans to HFCs (approved by NHB for their refinance) for on lending,
up to ₹…………. for individual borrowers, for purchase/construction/
reconstruction of individual dwelling units or for slum clearance and
rehabilitation of slum dwellers
a) 10 lacs b) 20 lacs

c) 25 lacs d) 50 lacs

14 Bank loans up to a limit of ₹………… per borrower for setting up schools,

drinking water facilities and sanitation facilities including construction/
refurbishment of household toilets and water improvements at household
level (Social Infrastructure)

a) 1 Crore b) 5 Crores

c) 10 Crores d) 20 Crores

15 Priority sector loans to the following borrowers which one is not correct
while considering as lending under Weaker Sections category
a) Individual women beneficiaries up to b) Artisans, village and cottage
₹1 lakh per borrower industries where individual credit
limits do not exceed ₹1 lakh

c) Distressed persons other than d) Distressed farmers indebted to

farmers, with loan amount not non-institutional lenders not
exceeding ₹1 lakh per borrower to exceeding ₹1 lakh per borrower

1026
 prepay their debt to non-institutional
lenders

16 The Cumulative target for priority sector lending, is ____ per cent of
Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance
Sheet Exposures (CEOBE) for commercial banks
a) 45 b) 50

c) 40 d) 55

17 The ROI on bank loans on priority will be as per directives issued by ……….
from time to time.

a) RBI b) Individual banks

c) Govt of India d) NABARD

18 No loan related and ad hoc service charges/inspection charges should be

levied on priority sector loans up to ₹…………

a) 25000 b) 10000

c) 50000 d) 1 lac

19 The mandated target of Small and Marginal farmers is increased to ..……%

of ANBC from the existing level of……….% of ANBC in a phased manner
a) 10 % and 8 % b) 12 % and 8 %

c) 10% and 9 % d) 12 & and 10 %

20 The mandated target of weaker sections is increased to…….% of ANBC from

the existing level of……% ANBC in a phased manner

a) 10 % and 8 % b) 12 % and 8 %

c) 10% and 9 % d) 12 & and 10 %

21 What is the target for Micro Enterprises under MSME ……? of ANBC or
CEOBE, whichever is higher.
a) 8% b) 7.50%

c) 10% d) 12%

22 Loans not exceeding ______per borrower provided directly by banks to

individuals and individual members of SHG/JLG, provided the individual
borrower’s household annual income in rural areas does not exceed
______and for non-rural areas it does not exceed Rs 1.60 lakh are eligible
for Priority Sector Classification
a) ₹ 1 Lakh & 2 Lakh b) ₹ 2 Lakh & 1 Lakh

1027
 c) ₹ 1.5 Lakh & 1 Lakh d) ₹ 1 Lakh & 1 Lakh

23 Loans not exceeding Rs. ___ lacs provided directly by banks to SHG/JLG
for activities other than agriculture or MSME, viz., loans for meeting social
needs, construction or repair of house, construction of toilets or any viable
common activity started by the SHGs are eligible for Priority Sector
Classification

a) 2.50 b) 2

c) 1.50 d) 1

24 For the purpose of computation of achievement of targets and sub targets

in Priority Sector Lending sub target, Farmers with landholding of up to 1
hectare are considered to be

a) Small Farmers b) Marginal Farmers

c) Medium Farmers d) Tenant Farmers

25 Loans for Agriculture Infrastructure will be subject to an aggregate

sanctioned limit of Rs. ______ Crore per borrower from the banking
system.
a) 25 b) 50

c) 75 d) 100

26 Loans for Food and Agro processing up to an aggregate sanctioned limit of

₹……… per borrower from the banking system.

a) 40 Crores b) 25 Crores

c) 100 Crores d) 50 Crores

27 The mandated sub target for weaker sections for the financial year 2020 21
is _________% per cent of Adjusted Net Bank Credit (ANBC) or Credit
Equivalent
of Off-Balance Sheet Exposures (CEOBE) whichever is higher
a) 7.5 b) 8

c) 9 d) 10

28 Loans to farmers for installation of solar power plants on barren/fallow

land or in stilt fashion on agriculture land owned by farmer can most
appropriately be classified under the following sub category of Priority
sector classification______

a) Renewable Energy b) Farm Credit

1028
 c) Ancillary Activities d) Social Infrastructure

29 Loans to farmers for installation of standalone Solar Agriculture Pumps and

for solarization of grid connected agriculture pumps can most appropriately
be classified under the following sub category of Priority sector
classification______

a) Renewable Energy b) Farm Credit

c) Ancillary Activities d) Social Infrastructure

30 As per RBI guidelines on priority sector credit banks are supposed to

maintain: a register/electronic record should be maintained by the bank
wherein the following information with thereof, etc. should be recorded. The
aforesaid register/electronic record should be made available to all
inspecting agencies

a) Date of Receipt b) Date of Sanction

c) Date of Disbursement d) All of the above

31 The performance under flow of credit to Minority Communities is being

reviewed regularly at various levels including ……….
a) RBI b) GOI

c) Parliamentary Committees d) All the above

32 GOI has stipulated minimum ……….% of priority sector advances as target

for credit to Minority Communities

a) 15 b) 10

c) 12 d) 8

33 The minority community Zoroastrian is also known as ………………

a) Sikh b) Buddhist

c) Parsi d) Sunni Muslim

34 Bank loans to any governmental agency for construction of dwelling

units or for slum clearance and rehabilitation of slum dwellers subject
to dwelling units with carpet area of not more than ………. SQ.M will be
classified under PRIORITY (RBI)
a) 45 b) 60

c) 120 d) 50

35 Foreign banks with less than 20 branches, total priority target is 40 % of

ANBC or CEOBE whichever is higher; out of which up to …………% can be

1029
 in the form of lending to Exports and not less than ………% can be to any
other priority sector

a) 40 % and 0 % b) 32 % and 8 %

c) 25 % and 15 % d) 18 % and 12 %

36 Total Priority Sector target of RRBs and SFBs…… % of ANBC or CEOBE

whichever is higher

a) 40 b) 50

c) 75 d) 60

37 A service enterprise with investment of Rs 2 Cr in Equipments and

turnover of Rs 7.50 crs will be classified as
a) MICRO enterprise b) SMALL enterprise

c) MEDIUM enterprise d) TINY enterprise

38 A service enterprise with investment of Rs 1 Cr in Equipments and turnover of Rs

7.50 crs will be classified as
a) MICRO enterprise b) SMALL enterprise

c) MEDIUM enterprise d) TINY enterprise

39 A service enterprise with investment of Rs 5 Cr in Equipments and turnover

of Rs 57.50 crs will be classified as
a) MICRO enterprise b) SMALL enterprise

c) MEDIUM enterprise d) TINY enterprise

40 FY 2021 22 onwards, To address regional disparities in the flow of priority

sector credit at the district level, a higher weight ………. %) would be
assigned to the incremental priority sector credit in the identified districts
where the credit flow is comparatively lower (per capita PSL less than
₹……..)
a) 125 % and Rs 6000/ b) 90 % and Rs 25000/

c) 125 % and Rs 25000/ d) 90% and Rs 6000

41 Loans sanctioned for housing projects exclusively for economically weaker

sections and low-income groups subject to a ceiling on dwelling unit can be
classified as Priority Sector lending. What is the ceiling amount per dwelling
unit?

a) 15 lacs b) 13 lacs

c) 12 lacs d) 10 lacs

1030
42 Bank credit to MFIs extended for on lending to individuals and also to
members of SHGs / JLGs will be eligible for categorization as priority sector
advance under respective categories viz., Agriculture, MSME, Social
Infrastructure and Others, provided not less than ………..% of total assets
of MFI (other than cash, balances with banks and financial institutions,
government securities and money market instruments) are to be in the
nature of “qualifying assets”

a) 50 b) 90

c) 75 d) 85

43 Bank credit to MFIs extended for on lending to individuals and also to

members of SHGs / JLGs will be eligible for categorisation as priority
sector if assets are nature of Quarifying assets, If Aggregate amount of
loan, extended for income generating activity, should be not less than
……..%

of the total loans given by MFIs.

a) 85 b) 50

c) 75 d) 40

44 PSLC certificates are traded at Which CBS platform ……

a) TREDS b) e Kuber

c) BSE d) NSE

45 Bank C sold PSLCs 100 Cr to Bank D on 30.3.17 (and subtracted), Bank D

reckoned Rs 100 Cr for priority achievement as on 31.03.17. As per RBI when
these PSLC will expire ………..
a) 31.03.2017 b) 31.03.2018

c) 01.04.2019 d) 30.03.2018

46 Out of the following PSLC certificates, which is not permitted by RBI

a) PSLC EXPORT b) PSLC AGRICULTURE
c) PSLC SF/MF d) PSLC MICRO ENTERPRISES

47 How many eligible categories of PSLC certificates are presently available

a) 3 b) 2

c) 5 d) 4

1031
48 MSME units will continue to enjoy the priority sector lending status up to
______ after they grow out of the MSME category concerned.

a) 6 months b) 1 year

c) 2 years d) 3 years

49 Which among the following is not a ‘Farm Credit’ in agriculture as

defined under Priority Sector Lending guidelines?
a) Loans to distressed farmers indebted b) Loans to soil conservation and
to non-institutional lenders. watershed development

c) Loans against pledge/hypothecation d) Loans up to ₹5 crore per

of agricultural produce for a period borrowing entity to FPOs/FPCs
not exceeding 12 months subject to a undertaking
limit up to ₹50 lakh.
farming with assured marketing of
their produce at a pre-determined
price.

50 Loans to Custom Service Units managed by individuals, institutions or

organizations who maintain a fleet of farm machines are classified as ___
under Priority Sector lending norms.

a) Advances to Micro Enterprises b) Agri. Infrastructure Credit

c) Ancillary activities under Agriculture d) None of the above

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10
ANS A B C B A A C A C A
Q 11 12 13 14 15 16 17 18 19 20
ANS D C B B D C A A A D
Q 21 22 23 24 25 26 27 28 29 30
ANS B D B B D C D B B D
Q 31 32 33 34 35 36 37 38 39 40
ANS D A C A B C B B C A
Q 41 42 43 44 45 46 47 48 49 50
ANS D D B B A A D D B C

1032
 BANKING LAW

1 Right of lien is not affected by

a) Law of limitation. b) Income tax Act,

c) Indian Succession Act d) Banking Regulation Act

2 M & N are having locker in joint names with E or S condition and “M” has reported
loss of keys and at the same time “N” has come for locker operation with keys

a) Operation should not be allowed b) Operation should be allowed with

without the concurrence of “M”. the concurrence of “M

c) Operation should be allowed jointly d) Operation should not be allowed

to the key holder

3 Issuance of bank guarantee will be accounted under

a) Contingent Liability b) Direct Liability

c) Indirect Liability d) None of the above

4 ___________________cannot be partner in partnership firm

a) Private Limited Company b) Public limited company

c) Government Company d) None of the above

5 A possession notice has been issued under ___________ and no response from
the borrower even after 60 days – Bank can proceed for possession of security /
take possession of management / sell the security

a) Banking Regulation Act b) SARFAESI ACT

c) The Reserve Bank Act d) DRT ACT

6 Cheque returned – As per Sec 138 of NI Act, the punishment is

imprisonment
a) 14 days b) Upto 7 years

c) Upto 5 years d) Upto 2 years

7 Limitation period for loans secured by EM of property/mortgage of property

a) 12 years b) 3 years

c) 7 years d) No limitation

8 HUF cannot be _______in a Partnership Firm

a) Nominee b) Partner

1033
 c) Director d) None of the above

9 Hypothecation defined under which act....

a) SARFAESI Act b) Banking Regulation Act.

c) Negotiable Instrument Act d) Indian Contract Act

10 imitation time for execution of Decree________from the date of Decree

a) 12 Years b) 3 Years

c) 2 Years d) 5 Years

11 Under SARFAESI ....... Option is available to Bank

a) To sell the secured assets b) to take over the management
c) to appoint a manager d) All the above

12 SARFAESI Demand notice. Mode of service

a) e mail b) Registered post

c) courier d) All of the above

13 Whose assistance is taken for taking physical possession under SARFAESI Act

a) District Magistrate b) Inspector of Police

c) Branch Manger d) Recovery Agents

14 RBI is empowered to regulate Banking Companies Under

a) Banking Regulation Act b) Negotiable instruments Act

c) Reserve Bank of India Act d) None of the above

15 In LLP Account Who are not eligible for becoming partners:

A) HUF B) Minor C) body corporate

a) A&B b) B & C

c) B only d) C only

16 As per SARFAESI Act, sale notice of _______ days to be issued before sale of

a) 30 days b) 60 days

1034
 c) 90 days d) 7 days

17 Garnishee Order is issued by _________ and the relationship of Bank with customer
should be Debtor
a) Court b) Income tax Dept

c) Central Govt d) Any one of the above

18 A Minor has extended Guarantee to a loan. It can be ratified b

a) Cannot be ratified b) Can be ratified by Court order

c) Can be ratified by the Minor on d) None of the above

attaining majority.

19 After receiving cheque from customer, we affix our bank’s crossing stamp. This is
done for the purpose of:

a) prevention of fraud b) requirement of NI Act

c) Cheque will become payable to our d) RBI regulation

bank only

20 Garnishee order is served on a person who has 4 accounts as under:

a) SB in personal Name;
b) TD in personal name maturing in Oct next;
c) Joint account with his wife;
d) another account in his name as trustee of a Mandir. Which can be attached?

a) a only b) b only

c) both a& b d) Both c & d

21 As per right to information act in how many days information to be given to

Customer
a) 30 days b) 60 days

c) 90 days d) 15 days

22 LLP minimum and max partners

a) Minimum 2 and maximum b) Minimum 2 and maximum 7

unlimited
c) Minimum 2 and maximum 20 d) Minimum 2 and maximum 50

23 Lok Adalat judgement

a) appeal at same court b) appeal at High court

1035
 c) appeal at supreme court d) No appeal

24 DD / BC for ____ and above should be signed by 2 officials

a) Rs. 50,000 /- b) Rs. 1,00,000 /-

c) Rs. 2,00,000 /- d) Rs. 5,00,000 /-

25 To recover possession of immovable property, mortgaged the period of limitation

available to mortgager is _____-

a) 30 years b) 12 years

c) 3 years d) No such limit

26 There are 3 trustees- A, B, C and operation condition of the accounts severally,

then B has issued Rs.50000 in the trust a/c in favour of personal a/c of B. What is
the position of banker?

a) yes, banker can pass the b) No bank cannot pass the cheque
cheque
c) Get signature of all trustees and pass d) None of these
the cheque

27 Paripassu charge is as per share of each

a) bank b) branch

c) Account d) None of the above

28 Bank do not normally give loan to unregistered partnership firm because

a) they cannot sue third party b) They do not repay the loan

c) Because it is invalid as per law d) It is difficult to obtain permission

from sanctioning authority

29 The minimum, maximum number of Share Holders in a Private Limited

Company
a) 50 & 200 b) 50 & 100

c) 100 & 200 d) 50 & 250

30 Format of the cheque is defined in which Act

a) Nowhere it is defined (It is usage and b) Banking Regulation Act

practice)

c) Negotiable instruments Act d) Reserve bank of India Act

1036
31 CERSAI is defined in

a) SARFAESI Act b) Banking Regulation Act

c) Negotiable instruments Act d) Reserve bank of India Act

32 Relationship in leasing of Locker to customer

a) Lesser and Lessee b) Bailor and Bailee

c) Debtor and Creditor d) Seller and Buyer

33 EM can be done at _______ place

a) Anywhere in India in places notified b) Place near to the customers
by State Govt residence

c) Place near to the Branch d) All bank branches

34 What is the status of nominee

a) he is only guardian for legal heirs b) he is only trustee for legal heirs

c) he is not related to the legal heirs d) None of the above

35 In the case of Electronic funds transfer is dishonored imprisonment of 2 years,

double amount penalty or both are defined in which Act?

a) Banking Regulation Act b) Information Technology Act

c) Negotiable instruments Act d) Reserve Bank of India Act

36 In the case of Electronic funds transfer is dishonored imprisonment of 2

years, double amount penalty or both are defined in which Act
a) NI Act b) RBI Act

c) Information Technology Act d) BR act

37 If Garnishee Order was mentioned with amount, action as a Banker

a) Amount mentioned in Garnishee b) Amount available in the account

Order

c) Send return unpaid d) Amount agreed by the customer

38 Which of the following is not material alteration

a) Making Crossed b) Filling the date column, which was
unfilled

c) Writing Bank name in already d) All the above

Crossed lines

1037
39 A, B & C are partners, if deed is not written what is the liability level of partner,
then
a) Jointly and severally liable b) No liability
c) Need not be entertained d) As per the loan amount sanctioned
to individuals

40 What is the relationship between Bank and depositor in the cheque collection sent
and received

a) Purchaser, Seller b) Debtor, Creditor

c) Principle, Agent d) None of the above

41 For equitable mortgage transaction the follow is/are necessary

5. Depositing title deeds
6. to be done at four Metro only
7. Any place where State Govt. decides
8. Only in Urban places
a) A and C b) B and C

c) A, B, and D d) All the above

42 After expiry of validity period of Bank guarantee, registered notice should be sent
to the beneficiary advising that liability discharged and no claim from beneficiary
on basis of guarantee. If no reply is received from beneficiary within ______
months the entry is reversed by banks
a) 1 Month b) 2 Months

c) 3 Months d) 6 Months

43 All fraud cases are to be reported to Police / CBI within ______ days of their
detection as per guidelines
a) 21 days b) 15 days

c) 30 days d) 7 days

44 In terms of Section 19 (2) of the Banking Regulation Act, 1949, no banking company
shall hold shares in any company, whether as pledgee, mortgagee or absolute
owner, of an amount exceeding ___% of the paid-up share capital of that company
or ___% of its own paid-up share capital and reserves, whichever is less.

a) 30 & 30 b) 75 & 25

c) 25 & 75 d) 50 & 50

Which of the following Act gives legal recognition to a Digital Signature

1038
45 a) Negotiable Instruments Act b) Income Tax Act

c) Information Technology Act d) Indian Evidence Act

46 ROC - Pledge of movable: need to be registered as per

a) Company act 2013 b) Banking Regulation Act

c) Income Tax Act d) Sales Tax act

47 he application received under Right to Information Act (other than information on life
/exigencies) is to be replied within ___days
a) 7 days b) 15 days

c) 30 days d) 48 hours

48 The highest appellate authority given in Right To Information Act is

a) Public Information officer b) The High Court

c) CPIO d) CIC (Chief Information

Commissioner)

49 The Fees payable to obtain information under RTI Act is Rs____

a) No fees b) Rs. 100 /-

c) Rs. 10 /- d) Rs. 50 /-

50 Under SARFAESI Act Possession to be taken after _____ days of issuing Demand
notice.

a) Immediately b) 30 days

c) 60 days d) 90 days

51 Under SARFAESI Act Possession notice is to be published in newspaper

within _____ days of taking possession
a) Need not be published b) 15 days

c) 7 days d) 30 days

52 Under SARFAESI Act action can be initiated on all eligible NPA accounts having
liability of more than _____

a) 1 Lakh and above b) Rs. 10 lakhs and above

c) Rs. 20 lakhs and above d) No prescribed limit

53 The penalty payable under Right to Information Act for not providing information
within the specified period is
a) Rs 250 /- per day max. of Rs25000 b) Rs 100/ per day max Rs 5,000/-

1039
 c) Rs 10 per day max Rs 5,000/ d) No limit

54 Under COPRA 2019, what is the limit upto which State Forum can handle
cases? a. No limit
a) Above 20 lakhs &upto 100 lakhs b) Above Rs. 1 Cr and upto Rs. 10 Cr
c) Above 10 Cr and upto Rs. 100 Cr d) Upto Rs . 20 lakhs

55 Limitation for filing complaint under COPRA from the date of cause of action is

a) Within 24 months b) Within 1 month

c) Within 36 months d) With 12 years

56 Internal Banking Ombudsman is appointed as per the recommendation of

a) Damodaran Committee b) Damodaran Committee

c) Subbarao Committee d) Guidelines of Reserve Bank

57 When a court injunction is received before settlement of a nomination Claim

a) Court injunction only has to be b) To be settled to nominees only

honoured

c) Cannot be settled d) To be settled to legal heirs

58 A depositor dying intestate means

a) He has not made any WILL b) He has made nomination only

c) He has left no property to be inherited d) Has no legal heirs

59 Guarantee is defined under which act?

a) Indian Contract Act b) Banking Regulation Act

c) Negotiable Instruments Act d) Income Tax Act

60 Simple Mortgage, should be registered within

a) 1 month b) 2 months

c) 3 months d) 4 months

61 RTI Act 2005 came into force on

a) 12 October 2005 b) 15 August 2005

c) 15 June 2005 d) 1 November 2005

1040
62 The officer designated by the public authorities in all administrative units or offices
under it to provide information to the citizens requesting for information under the
Act is known as

a) Appellate Authority b) Chief Information Commissioner

(CIC)

c) Public Information Officer (PIO) d) Assistant Public Information

Officer

63 What is the time limit to get the information under RTI Act 2005?

a) 15 days b) 7 days

c) 60 days d) 30 days

64 What is the time limit to get the information concerning the life and liberty of a
person

a) 48 Hours b) 24 Hours

c) 5 days d) 7 days

65 What is the fee for getting information under RTI Act

a) Rs. 20 /- b) Rs. 50 /-

c) Rs. 100 /- d) Rs. 10 /-

66 First appeal to the first appellate authority can be preferred by the applicant within
-------- days from the expiry of the prescribed time limit or from the receipt of the
decision from the PIO

a) 30 days b) 45 days

c) 60 days d) 90 days

67 First Appeal shall be disposed of by the first appellate authority within ------ days
from the date of its receipt

a) 15 days b) 30 days

c) 60 days d) 90 days

68 Second appeal to the Central Information Commission/ the State Information

Commission can be preferred by the applicant within ------ days from the date on
which the decision was given or should have been made by the First Appellate
Authority

1041
 a) 30 days b) 45 days

c) 60 days d) 90 days

69 Appointment Committee of Central Chief Information Commissioner (CIC) includes

a) Prime Minister b) Leader of the Opposition in the

Lok Sabha

c) One Union Cabinet Minister to be d) All the above

nominated by the Prime Minister

70 According to the `RTI Act, 2005`, as far as exempted organizations are concerned,
the exemption applies to

a) Certain organizations of the Central b) Certain organizations of the State

Government as listed in the 2nd
Schedule and to the information
submitted by these organizations to
this Government
Governments as may be notified
by them in the Official Gazette, but
NOT to the information furnished
by these organisations to the
respective State Governments

c) Both (a) & (b) d) None of the above

71 Under which section of Banking Regulation Act 1949, every banking company has
to maintain Statutory Liquidity Ratio (SLR)

a) Sec 5 (b) b) Sec 25

c) Sec 24 d) None of these

72 Protection to the Collecting Banker is available only for crossed cheques under
Section ____of the N.I.Act.1881

a) Sec 130 b) 141

c) Sec 131 d) 138

73 On which of the following, a garnishee order is not applicable?

a) Funds in the account at the time of b) Fixed deposit which is yet to be

receipt of garnishee order mature

c) RD maturing within 3 months d) Amount deposited by the

customer after receipt of the
garnishee order

1042
74 A cheque is written in different hand-writings and different inks. Will you pay the
cheque?

a) No. It will not be paid b) Yes. It will be paid as long as the

drawer’s signature is not forged

c) Drawer will have to sign where ever d) None of these

different writings are done by
different persons and wherever
different inks are used

75 A was trusty of one property from the amount of trust he purchase some land for
his brother B, B put this land as mortgage to C, does C is responsible in this fraud?

a) No b) Yes

c) No one is responsible d) Both are responsible

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10
ANS a a a a b a a b a a
Q 11 12 13 14 15 16 17 18 19 20
ANS d d a a a a a a c c
Q 21 22 23 24 25 26 27 28 29 30
ANS a a d a a a a a a a
Q 31 32 33 34 35 36 37 38 39 40
ANS a a a b c a a d a b
Q 41 42 43 44 45 46 47 48 49 50
ANS a a a a c a c d c c
Q 51 52 53 54 55 56 57 58 59 60
ANS c a a b a a a a a d
Q 61 62 63 64 65 66 67 68 69 70
ANS a c d a d a b d d c
Q 71 72 73 74 75
ANS c c d b a

1043
 Government Business & Government Products

1 What is the minimum pension guaranteed by the Govt of India under the Atal
Pension Yojana?
a) Rs. 1000 b) Rs. 2000
c) Rs. 3000 d) Rs. 5000
2 What is the minimum age at which a subscriber can join the Atal Pension
Yojana?
a) 25 years b) 22 years
c) 18 years d) 15 years
3 What is the maximum age at which a subscriber can join the Atal Pension
Yojana?
a) 30 years b) 40 years
c) 50 years d) 60 years
4 What is age at which subscriber will be eligible for pension under the Atal
Pension Yojana?
a) 55 years b) 57 years
c) 58 years d) 60 years
5 What is the annual premium payable by the subscriber to the Pradhan Mantri
Jeevan Jyoti Bima Yojana?
a) Rs. 210 b) Rs. 330
c) Rs. 450 d) Rs. 510
6 What is the insurance cover payable to the nominee on the death of the
subscriber to the Pradhan Mantri Jeevan Jyoti Bima Yojana?
a) Rs. 50000 b) Rs. 100000
c) Rs. 150000 d) Rs. 200000
7 Entry to the Pradhan Mantri Jeevan Jyoti Bima Yojana is not allowed after the
age of -
a) 45 years b) 50 years
c) 55 years d) 60 years
8 What is the minimum age for joining the Pradhan Mantri Jeevan Jyoti Bima
Yojana?
a) 18 years b) 21 years
c) 25 years d) 30 years
9 What is the age after which the benefit of insurance will not be available to the
subscriber to the Pradhan Mantri Jeevan Jyoti Bima Yojana?
a) 50 years b) 55 years
c) 60 years d) 65 years
10 What is the amount payable to the subscriber on attaining the age of 55 years
under the Pradhan Mantri Jeevan Jyoti Bima Yojana?

1044
 a) Full amount subscribed b) Full amount subscribed with 4%
interest
c) 50% of the amount subscribed d) No amount is payable

11 What is the annual premium payable under the Pradhan Mantri Suraksha Bima
Yojana?
a) Rs. 12 b) Rs. 15
c) Rs. 18 d) Rs. 20

12 What is the insurance cover provided to the subscriber of the Pradhan Mantri
Suraksha Bima Yojana in case of accidental death or full disability?
a) Rs. 100000 b) Rs. 150000
c) Rs. 200000 d) Rs. 250000
13 What is the age group to whom the Pradhan Mantri Suraksha Bima Yojana is
available?
a) 18 to 40 years b) 18 to 50 years
c) 18 to 60 years d) 18 to 70 years
14 What is the insurance cover provided to the subscriber of the Pradhan Mantri
Suraksha Bima Yojana in case of partial disability?
a) Rs. 100000 b) Rs. 150000
c) Rs. 200000 d) Rs. 250000
15 What is the insurance cover provided to a holder of Pradhan Mantri Jan Dhan
Yojana account in case of accidental death?
a) Rs. 20000 b) Rs. 40000
c) Rs. 50000 d) Rs. 100000
16 What is the overdraft allowed to the account holder after 6 months of
satisfactory operation of Pradhan Mantri Jan Dhan Yojana account?
a) Rs. 3000 b) Rs. 5000
c) Rs. 7000 d) Rs. 10000
17 What is the slogan of the Pradhan Mantri Jan Dhan Yojana?
a) Sabka Saath Sabka Vikas b) Beti Bachao Beti Padhao
c) Kal ki Fikr Nahin d) Mera Khata Bhagya Vidhata

18 Upto what age of the girl child can an account under the Sukanya Samriddhi
Yojana be opened?
a) 8 years b) 9 years
c) 10 years d) 12 years

19 For how many years can deposits be made in an account under the
Sukanya Samriddhi Yojana?
a) 10 years b) 12 years
c) 15 years d) 21 years
1045
20 What is the maximum number of accounts a natural or legal guardian can open
for his girl children under the Sukanya Samriddhi Yojana?
a) One b) Two
c) Three d) Equal to number of girl children
21 What is the minimum annual deposit to be made in an account under the
Sukanya Samriddhi Yojana?
a) Rs. 1000 b) Rs. 750
c) Rs. 500 d) Rs. 250
22 What is the maximum amount that can be deposited in a year in an account
under the Sukanya Samriddhi Yojana?
a) Rs. 100000 b) Rs. 150000
c) Rs. 250000 d) Rs. 300000
23 What is the animal in the logo of Make in India campaign?
a) Tiger b) Lion
c) Elephant d) Cow

24 Which State has been allocated the maximum number of cities under the Smart Cities
Mission?
a) Uttarpradesh b) Maharastra
c) Tamilnadu d) Gujarat
25 How many cities are targeted to be covered under the Smart Cities mission in
the 5-year period from 2019-2020 to 2022-23?
a) 20 cities b) 50 cities
c) 100 cities d) 500 cities

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10
ANS A C B D B D B A B D
Q 11 12 13 14 15 16 17 18 19 20
ANS A C D A D B D C C C
Q 21 22 23 24 25
ANS D B B A C

1046
 CUSTOMER SERVICE – MCQs

1 The duty of Grahak Mitra is to

a Greet and Guide the customers b Help customers in opening a/cs

c Help in ATM cards/Internet d All of the above

banking mobilization

2 Customer day is celebrated on of every month?

a th b Last day of the month

5

c 10th d
26th

3 A complaint received from the customer needs to be redressed within

Days

a 10 b 5

c 6 d 21

4 Customer Relations Programme is held at branches at intervals.

a Monthly b Quarterly

c Half-yearly d Yearly

5 An aggrieved customer can register his complaint by making call on Toll

Free Number

a 18001234 b 18004253800

c 1800112211 d All of these

6 Expand TAT

a Time After Time b Turn Around Time

c Things After Turn d None of these

7 Expand CRP in terms of Customer Service

a Customer Retention Product b Customer Relationship

Programme

1047
 c Complaint Resolution Provider d None of the above

Board of India

8 A Joint Hindu Family letter should be obtained for HUF account at the time of
account opening, in the format of

a COS 36 b COS 37

c COS 38 d COS 39

9 New Portal ERMS developed by Bank for monitoring of MUST SEE category
report (generated by CBS). What is the full form of ERMS

a Exception Report Monitoring b Exception Report Management

System System

c Executive Report Monitoring d None of these

System

10 The compensation for any loss suffered by the complainant is limited to the
amount arising directly out of the act or omission of the bank or Rs. ,
whichever is lower.

a 10 lacs b 15 lacs

c 20 lacs d None of the above

11 In the case of a disaster, it is essential to have business continuity plan (BCP) in

order for all of our branch locations. What Does BCP Mean For?

a Business Continuity Process b Business Contigency Plan

c Business Continuous Plan d Business Continuity Plan

12 Preventive Vigilance Committee have to formed in Branches having a

staff strength of or more.

a 5 b 10

c 15 d 20

13 Preventive Vigilance Committee meetings to be held once in every

a Month b Bi-month

1048
 c Quarter d Year

14 Customer Service Committees at Branch Level shall be held once a

a Week b Month

c Quarter d Year

15 Indicator boards at all the counters should be displayed in ?

a English b Hindi

c Regional Language d All the above

KEY to Customer Service-MCQs

1 D 2 C 3 D 4 B 5 D

6 B 7 B 8 C 9 A 10 C

11 D 12 B 13 C 14 B 15 D

1049
 MCQ on Nomination / Deceased settlement

1 Nomination is defined under which Act

a) RBI Act b) BR Act

c) SBI Act d) None of these

2 Signature on Nomination form is to be attested by

a) one witness b) Two witness

c) Not required d) Nominee

3 Locker- in the joint names of A and B with joint operation. A given

nomination if favour of X. A dies. To whom it should be settled?

a) to B and nominee X jointly b) to nominee only

c) to be settled to B only d) None of the above

4 Nomination facility is available for

a) Proprietorship b) Firms

c) Clubs d) Trusts

5 What is the status of nominee

a) he is only guardian for legal heirs b) he is only trustee for legal heirs

c) he is not related to the legal heirs d) None of the above

6 In case of sole hirer of a locker, nomination shall be made in favour of only

one individual. True or False?
a) True b) False

7 The settlement of claims by the branch shall be applicable only in case of

domestic deposit accounts of the missing person held in individual capacity
and up to a limit of _______ with the approval of controller.

a) Rs. 1,00,000 /- b) Rs. 50,000 /-

c) Rs. 2,00,000 /- d) Rs. 5,00,000 /-

8 Death claims with Locker without nomination can be settled under the
Powers of

a) Branch Manager b) As per delegation of power

applicable to deceased settlement
c) Regional Manager d) None of these

1050
 9 For break open of Locker permission to be obtained from_________.
a) Regional Manager b) Branch Manager (Scale IV &
above)

c) DGM d) Service Manager

10 Saving account with balance of Rs 7,45,000 and Term deposit of Rs 1,40,000/-

both having nomination can be settled under

a) Branch Power b) Sent to RBO for approval

c) As per delegation of power d) DGM

applicable to deceased
settlement

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10
ANS b c a a b a a b a a

SAFE DEPOSIT LOCKERS AND SAFE CUSTODY

1 The Relationship between Banker and Locker hirer in case of locker is

_________
a) Debtor – Creditor b) Licensor – Licensee
c) Bailor – Bailee d) Principal -Agent
2 In respect of Lockers, Power of attorney holder can
a) Operate the locker and also b) Operate the locker but cannot
surrender it surrender it
c) Can give fresh mandate for operation d) None of these
3 Nomination facility for safe deposit lockers is as per Sec……. of. Banking
Regulation Act 1949
a) Sec 45ZA b) Sec 45ZB
c) Sec 45ZE d) Sec 45 ZD
4 What is the maximum number of nominations allowed in case of jointly
operated locker?
a) Only One Nomination b) Two Nominations
c) Three Nominations d) No such restriction
5 A locker cannot be given on hire to the following:
a) Minor b) Non-individuals
c) Clubs, societies and Associations d) All the above
6 The officer-in-charge of Lockers should check the locker room

1051
 a) Immediately after the locker hirer b) At the end of the day
has used it.
c) Randomly in between d) As per new guidelines, checking is
not required
7 Where the locker has remained inoperative for more than ___ years for high
risk category, the branch should immediately contact the locker hirer:
a) 1 year b) 2 years
c) 3 years d) 5 years
8 Nomination in Safe Deposit Lockers can be made by holder having which of
the following type of operation
a) Joint operation b) E or S type
c) F or S type d) L or S type
9 A company wants to hire a Safe Deposit Locker in the branch. What the
locker in charge will do?
a) take a large deposit and give the b) give the locker
locker
c) locker cannot be given to non- d) seek instructions from BM
individual
10 Mr X and Mr Y have a locker in joint names. Mr X is visually impaired. Mr Y
wants to operate the locker alone. Is it permitted?
a) Yes b) No
c) Can't say d) Depends on Mr. X
11 Where the locker has remained inoperative for more than __ years for medium
risk category, the branch should immediately contact the locker hirer.
a) 1 year b) 2 years
c) 3 years d) 5 years
12 The signatures of a visually impaired locker hirer on the locker access
register should be witnessed by a person
a) Any person known to the locker hirer b) Preferably a customer of the Bank or
a branch official other than the
Locker in-charge
c) Independent witness acceptable to d) Any one of the above
the bank
13 Items that are left inadvertently in the locker room are kept as……
a) Single Custody with BM b) Joint Custody with BM and Cash
Officer
c) Joint Custody with BM/Service d) None of the above
Manager and Cash Officer
14 CBS will deduct annual locker rents in advance for the Financial Year on___
a) 1st April b) 2nd April
c) 31st March d) 3rd April

1052
15 Succession certificate does not cover
a) Gold loan ornaments b) Safe deposit lockers
c) Articles in safe custody d) All of the above
16 In case of locker, how many operations are free in a year?
a) 15 b) 10
c) 5 d) 12
17 Locks of surrendered lockers should be interchanged among the surrendered
lockers before allotting to a new hirer :
a) TRUE b) FALSE
c) No such instructions d) Not necessary
18 Safe Deposit Lockers can be allotted to
a) Blind/Visually impaired b) Illiterate
c) NRI d) All the above
19 Fixed Deposit should be insisted to the value of ________for allotment of
Safe Deposit Locker
a) Rs 5 Lakhs b) Cover locker rent for 3 years and
charges for breaking open of
lockers
c) Rs 10 Lakhs d) Rs 25 Lakhs
20 Safe Deposit Locker should be allotted on
a) BM Recommendation b) VIP Customer
c) First Cum First Serve Basis d) Based on the Period of Connection

21 Search Warrant can be issued by Income Tax Dept for Safe Deposit Lockers
under
a) Sec 132 of IT Act b) Sec 138 of IT Act
c) Sec 139 of IT Act d) Sec 140 of IT Act
22 Allotment of Safe Deposit Locker should be done after
a) Obtaining KYC Documents b) Risk Categorisation
c) Both a and b d) Either a or b
23 Access to Lockers should be by verifying
a) Signatures b) Key of Safe Deposit Lockers
c) Photos in case of illiterates d) A or C
24 Whether Bank is responsible for the contents kept in the Safe Deposit Locker
a) Yes b) No
c) Yes, if declared d) None of the above
25 Break Opening Charges for Safe Deposit Lockers has to be borne by
a) By Customer b) By Bank
c) By Customer and Bank in 50% d) None of the above
ratio
1053
26 COS Form for Safe Deposit Locker Agreement
a) COS 404 b) COS 103
c) COS 405 d) COS 406
27 The Safe Deposit Locker Room should be constructed as per
a) No Specifications b) Class A Specifications
c) Class B Specifications d) None of the above
28 When there is no Nomination for Safe Deposit Lockers Access may be allowed
by
a) Succession Certificate b) Letter of Administration
c) Probate d) Any of the above
29 Overdue Charges is recovered at ___percent if due for more than 1 year
a) 50% b) 10%
c) 75% d) 40%
30 Safe custody receipt in respect of branch duplicate keys is kept in the
a) Joint custody of the branch manager b) Sole custody of the branch manager
and manager cash in his hand safe
c) Joint custody of the accountant and d) Sole custody of accountant
cash officer
31 In case of Joint A/c (E or S), locker can be surrendered, and the
account closed
a) By both of them jointly b) By either of them
c) By First Hirer singly d) Either a or b
32 A authorizes B for operating his locker. B approaches the bank for
surrender thereof. How would you react?
a) B can surrender the locker b) B cannot surrender the locker
c) If contents are nil, he can surrender d) None of the above
33 In lockers rent is collected at _______ Intervals.
a) Half Yearly b) Yearly
c) One year in advance d) Once in 2 years
34 When a vacancy arises, the wait listed locker hirer will be advised by
registered post to acquire the locker in
a) 60 days b) 30 days
c) 15 days d) No time limit
35 Keys of unrented lockers will be in the custody of
a) same officer cannot have the b) if the locker-in-charge has the
custodian and hirers custodian key, hirers’ keys
should be with a supervising
official of at least MMGS II
grade or cash officer
c) both 1 & 2 d) none of these

1054
36 When the locker is hired in joint names and the key is lost, the advising
letter should be signed by
a) all the hirers b) hirers as per mandate of operation
c) any one of the hirers d) PA holder of hirer holding mandate
to operate
37 On receipt of notice of revocation of mandate from any one of the joint
hirers
a) access should be allowed jointly b) access should be denied until fresh
mandate from all the joint hirers
received
c) hirers advised to surrender the d) none of these
locker
38 When Medium Risk classified customers have not operated lockers for 3
years
a) the branch advises the hirer to b) if the hirer fails to respond, the
operate the locker or surrender it branch may consider breaking
open of the locker
c) regular payment of locker rent is no d) all the above
exception for this procedure
39 No of free visits for locker operation per year is restricted to 12.
Thereafter Rs to be charged per visit
a) 50 b) 50+ GST
c) 100+ GST d) 100
40 In case of joint hirers “E or S” of a safe deposit locker, nomination shall be made in
favour of?
a) Individual b) Nomination not allowed in other
then Jointly operated locker.
c) One person each can nominate one d) None of these
person
41 Where locker rent is not paid 3 months after the due date, notice should be sent
on
a) COS 401 b) COS 402
c) COS 405 d) COS 406

42 One Time Locker Registration Charge for Small and Medium Lockers.
a) 800+GST b) 750+GST
c) 600+GST d) 500+GST

43 One Time Locker Registration Charge for Large and Extra Large Lockers are
a) 800+GST b) 1000+GST
c) 750+GST d) 500+GST

1055
44 What is the concession available on Locker Rent for Salary Package
Customers under Platinum Category?
a) 25% b) 50%
c) No such concession available d) 10%
45 What is the concession available on Locker Rent for Salary Package
Customers under Diamond Category?
a) 25% b) 15%
c) 50% d) 20%
46 What is the concession available on Locker Rent for Exclusif / Wealth Account
Holders
a) 25% b) 15%
c) 50% d) No such concession available
47 Locker should be broken in the presence of number of
independent witnesses
a) 10 b) 5
c) 2 d) 1
48 Concession for locker rent will be given in CSP variants as under
a) 15% for Diamond b) No concession for Silver & Gold
c) 25% for Platinum d) All the above
49 Which of the following is correct about charges payment at the time of hiring
the locker?
a) Current year pro-rata rent+ 1-year b) Current year pro-rata +GST + 3
rent in advance + registration years FD
charges +GST
c) Current year pro-rata + GST. d) Current year pro-rata rent+ 3-year
Advance rent may be waived at rent in advance + Registration +GST
discretion.
50 One locker per cabinet should always be kept vacant for:
a) For interchange of locks b) Keeping vacant locker keys
c) For malfunctioning lockers swap d) Allotting to HNI during emergency
51 Notice regarding payment of Locker rent should be sent when?
a) 10 days after due date b) 15 days after due date
c) 1 week After due date d) on or before the due date
52 Locker should be broken open in the presence of a committee consisting of
a) one officer of the branch, one officer b) one officers of the branch and one
from RBO and two independent independent witnesses
witnesses
c) two officers of the branch and two d) one officer, one cash in-charge of
independent witnesses the branch and two independent
witnesses

1056
53 For break-open of locker for which rent is overdue for more than one year,
controller's permission is
a) Required b) For Scale IV and above branches
c) For Scale III and above branches d) Not required
54 Contents of the locker, after break-open, should be kept as
a) Safe custody item under single b) Safe custody item under custody of
custody of Cash officer accountant / BM
c) Safe custody item under joint d) Safe custody item under joint
custody custody
55 Locker rent is credited in which BGL head?
a) 93284 b) 98324
c) 98524 d) 95284
56 Periodicity for balancing Safe custody/Security is
a) Half yearly b) Yearly
c) Quarterly d) Monthly
57 When the bank accepts articles for keeping in safe custody, the relationship
between the banker and the customer is that of _________
a) Bailor and Bailee b) Principal and Agent
c) Trustee and Beneficiary d) Bailee and Bailor
58 To ensure Lockers rent are recovered periodically, Service Manager to verify failed
SI report between ______ dates.
a) 25 th 31st March b) 1st and 5th April.
c) 1st and 15th April d) None of the above
59 Articles left in safe custody cannot be delivered on the basis of a succession
certificate because
a) These are not included in debt and b) It is not allowed under RBI Act
securities as defined under Indian
Succession act 1925
c) It is not permitted under NI Act d) None of the above
60 In case of accepting articles in safe custody, the nomination facility is available
under
a) BR Act b) NI Act
c) RBI Act d) None of the above

1057
 SAFE DEPOSIT LOCKERS AND SAFE CUSTODY -
ANSWER KEY

Q 1 2 3 4 5 6 7 8 9 10
ANS b b c b d a a a c b
Q 11 12 13 14 15 16 17 18 19 20
ANS c b c b d d a d b c
Q 21 22 23 24 25 26 27 28 29 30
ANS a c d b a a c d d b
Q 31 32 33 34 35 36 37 38 39 40
ANS a b c c c a a d c b
Q 41 42 43 44 45 46 47 48 49 50
ANS d d b a b a c d a a
Q 51 52 53 54 55 56 57 58 59 60
ANS d c a c b c d b a a

1058
 NPA Management

1 The Legal expenses incurred by Bank in respect of suit filed accounts to be

debited to
a) P& L account b) Customer account

c) Loan account d) Need not be paid

2 A bank who has purchased NPA from another bank can resell the same
after holding the same init books for ______months from the date of NPA
a) 9 moths b) 12 moths

c) 36 moths d) Cannot sell as it is already NPA

3 Banks /FI should submit the list of suit-filed accounts of Willful defaulters of
Rs ____ as at endo march, June, September and December every year to
Credit information Bureau (India) ltd. (CIBIL) and submit the quarterly list of
willful defaulters where suits
a) 25 lakhs and above b) 1 lakh and above

c) 1 crore and above d)

4 In which of the following Assets provisioning is not required

a) Standard Assets b) Sub-Standard Assets

c) Doubt full Assets d) None of the above

5 Consortium accounts will be classified as NPA based on

a) the individual bank’s recovery b) The liability of the account

c) The capital of the customer d) The no of directors of the

company

6 Wilfull defaulters will not be allowed to float any new ventures for a period of

a) 7 years b) 10 years

c) 5 years d) 3 years

7 A possession notice has been issued under ___________ and no response

from the borrower even after 60 days – Bank can proceed for possession of
security / take possession of management / sell the security

a) Banking Regulation Act b) SARFAESI ACT

c) The Reserve Bank Act d) DRT ACT

1059
8 Any aggrieved person by an order of DRT in an application filed by the
borrower under SARFAESI act, can prefer appeal by paying fee in DRAT by
depositing by____

a) 50% of the dues. DRAT can reduce it b) 60% of the dues. DRAT can
to 25% reduce it to 30

c) 20% of the dues. DRAT can reduce d) 50% of the dues. DRAT can
it to 10% reduce it to 10%

9 To obtain minimum 2 independent valuation reports from 2 panel valuers

in respect of loan accounts where the value of property obtained is
a) Rs. 1 Cr and above b) Rs.10 Cr and above

c) Rs. 50 lakhs and above d) Rs. 5 Cr and above

10 Provision on Doubtful Asset s more than 3 years old

a) 15% of the Book liability b) 25% of the Book liability

c) 75% of the Book Liability d) 100% of the Book Liability

11 We have to submit to RBI the list of Wilful Defaulters of R s._______ and above,
List of Defaulters with liability of R s._________ and above. Out of the above, Suit
Filed accounts details being submitted to CIBIL
a) Rs.25 lakhs, Rs.1 crore b) Rs.5 lakhs, Rs.5 crore

c) Rs.2 lakhs, Rs.5crore d) Rs 1 Crore and above

12 Bank has sanctioned loan for a purpose but the party has taken out the
amount out of business which resulted in deterioration of business. This is
called as

a) willful default b) diversion of funds

c) siphoning off d) write off

13 Advantages of Lok Adalat

a) No advocate fee b) No court fee

c) No appeal as the decree is consent d) All the above

decree

14 When an account has become NPA, interest debited earlier and non
recovered should be:

a) Reversed as provision b) Reversed as URI

c) Capitalised with principle amount d) No action needed

1060
15 Working capital advance not renewed, when it will become NPA –
a) 90 days b) 180 days

c) 270 days d) 1 year subject to approval

16 If stock statements not submitted for more than ---- months and the
irregular drawings are permitted in the account for a continuous period
of --- days then the account becomes NPA(out of order accounts)
a) 3 months, 90 days b) 1 months, 30 days
c) 6 months, 90 days d) 6 months, 180 days

17 Fraud of 3 crore should be reported to ______

a) CBI economic offences wing b) Police compliant only

c) RBI d) Zonal office

18 SARFAESI cannot be initiated in accounts with less than ____ of principal

due

a) 25 % b) 20 %

c) 10 % d) 50 %

19 When the security in the account is less than 10% it is directly

classified as
a) Loss b) Doubtful

c) Sub standard d) None of the above

20 What is the minimum claim amount to be eligible for filing case in DRT
a) Rs. 20 lakhs b) Rs. 10 lakhs

c) Rs. 1 Crore d) Any amount as decided by the

bank’s board

21 CIBIL has categorized the credit information under certain groups. Which of
the following are they?

a) Consumer Accounts- Borrowal b) Commercial Accounts- Borrowal

accounts in the name of Individuals accounts of other than Individual

c) Both A&B d) None of these

22 Loan granted for short duration crops will be NPA if overdue for –
a) 2 crop seasons b) 1 year

1061
 c) 90 days d) 2 crop season to maximum of 1
year

23 Loan treated doubtful After _______of becoming NPA

a) 90 days b) 6 months

c) 12 months d) 24 months

24 LOK ADALAT can handle cases up to

a) Rs. 20 lakhs b) Rs. 50 lakhs

c) Rs. 1 Cr d) No limit

25 Agencies which purchases NPA from Banks are called

a) Asset Reconstruction Company b) Asset purchase company

c) NBFC d) None of the above

ANSWERS

Q 1 2 3 4 5 6 7 8 9 10
ANS a b a d a c b a a d
Q 11 12 13 14 15 16 17 18 19 20
ANS a c d b b a a b a a
Q 21 22 23 24 25
ANS c a c a a

1062
 MCQs on NPA Management & Sourcing

1 Which of the following statements is most appropriate in respect of NPA

Management?
a) Poor processing is the prime b) The seed of NPA is sown in
cause of accounts becoming improper Sourcing of proposals
NPAs.
c) Not following up RG-3 accounts is d) Not following up RG43 accounts
the prime cause of accounts is the prime cause of accounts
becoming NPAs. becoming NPAs.
2 SARFAESI Act is not applicable to Accounts where amount due is less
than:
a) 1 lac b) 2 lacs
c) 3 lacs d) 5 lacs

3 Demand notice u/s 13(2) shall be issued by Authorised Officer in writing

to the Borrower(s)/ Guarantor(s)/Mortgagor(s) and legal heir(s) if
applicable, giving the time of _____ days to discharge the liabilities.
a) 30 b) 60
c) 45 d) 90
4 ‘Authorized officer’ means an officer not less than a _______ of a public-
sector bank or equivalent, for the purpose of SARFAESI action.
a) Chief Manager b) Assistant General Manager
c) Deputy General Manager d) General Manager
5 Bank has to issue notice through paper publication within_____ days
after taking the possession of the asset under SARFAESI Act, 2002.
a) 30 b) 60
c) 7 d) 5
6 Notice issued under Section 13(2) of SARFAESI Act is issued against
______ property.
a) Mortgaged property b) Hypothecated property
c) Both mortgaged and d) None of the above
hypothecated properties
7 In how many days the borrower can file an application against the action
taken by the bank under Section 13(4) SARFAESI Act 2002 for taking
the possession of the secured asset:
a) 45 days b) 30 days
c) 60 days d) 90 days

1063
8 As per RBI Classification SMA is a category between ……..
a) Sub-standard & Doubtful b) Standard & Sub-Standard
c) Doubtful-1 & Doubtful-2 d) Doubtful & Loss
9 As per RBI Classification SMA-2 is a category where……..
a) Principal or interest payment b) Principal or interest payment
overdue between 31-60 days overdue between 61-90 days
c) Principal or interest payment not d) Principal or interest payment
overdue less than 30 days but overdue between 91-180 days
account showing signs of
incipient stress
10 Which of the options is not considered as early warning signal for stressed
asset management?
a) Failure of SIs / ECS b) Bouncing of cheques
c) Death of the borrower or key d) Opening savings account in
member of the family another Bank
11 Interest on advances against Term Deposits, NSCs, IVPs, KVPs and Life
Insurance policies may be taken to income account on the due date,
provided
a) Adequate margin is available in b) Interest debited in a quarter is
the accounts covered by credit during that
quarter
c) It is paid on cash or cash- d) It has accrued
equivalent
12 The ‘unsecured exposures’ which are identified as ‘substandard’ would
attract additional provision of ___percent.
a) 10 b) 15
c) 20 d) 25
13 Appropriation of recoveries in NPAs (i.e. towards principal or interest
due), as per the Bank’s extant instructions is done in accordance with
following priority.
a) Principal, Charges, Unrealized b) Unrealized Interest, Principal,
Interest, Interest Charges, Interest
c) Principal, Interest, Unrealized d) Charges, Unrealized Interest,
Interest, Charges Interest, Principal
14 In Standard Asset category, direct advances to Commercial Real Estate
(CRE) sectors attract a provision of ….
a) 0.25 % b) 0.40 %
c) 0.75 % d) 1.00 %
15 Cash Credit account will become an NPA if the limit is not renewed
within
a) 90 days from due date b) 180 days from due date

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 c) 270 days from due date d) None of the above
16 NPA tracking in CBS happens
a) Daily b) Weekly
c) Fortnightly d) Monthly
17 An account shall be classified as doubtful asset if the value of the
security is eroded by ….% of the outstandings.
a) 25 b) 40
c) 50 d) 90
18 Quick Mortality Loans are the loans fall in to the category of
a) Having Shortest Moratorium b) Advances, where either the
Period borrower or guarantor dies even
before full disbursement of loan.
c) Accounts sanctioned/disbursed d) None of these
and where repayment has been
initiated during the financial year
and slipped into NPA category
within the first two years of
sanction/ repayment
19 Bank has introduced arrear condition ________ w.e.f. 10.03.2020 to
identify and mark the account NPA, when outstanding and accrued
interest on loan exceeds principal and interest accrued on Time
Deposit, held as security

a) 901 b) 902
c) 903 d) 999

20 Bank has introduced arrear condition ______ w.e.f. 06.07.2020 to

identify and mark the account NPA, when outstanding and accrued
interest on loan exceeds the underlying security value of the insurance
policy held as security.
a) 901 b) 902
c) 903 d) 999
21 You are the Branch Manager of MMGS-II Branch. Competent Authorities
have approved filing of civil suit and transferring the outstanding to
Recalled Assets Account, however empaneled Advocate requests you
to permit him to file the case in Civil Court after 5 months as he is going
abroad for some personal work. Which course of action will you take?
a) To identify another advocate for b) To identify another advocate for
filing of suit in court within 1 filing of suit in court within 3
month from the date of approval months from the date of
from controller. approval from controller.

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 c) To identify another advocate for d) To wait for the advocate till he
filing of suit in court within 2 return back to India after his
months from the date of approval vacation.
from controller.
22 Your Field Officer is in a confused state of mind regarding type of
recovery measures whether Soft or Hard Recovery Measure to be
initiated by a Branch when loan account becomes NPA. Which of the
following is a hard recovery measure?
a) Reminders b) Tele calling
c) SARFAESI d) Compromise
23 A Centralized Loan Collection System (LCS) has been introduced by
our Bank to automate the process of following up of delinquent
customers for collection and recovery of due amount in segment
loans.
a) AGR segment b) PER Segment
c) SIB segment d) C&I segment
24 Through Centralized Loan Collection System (LCS), follow-up can be
made for …………types of accounts.
a) Delinquent customers including b) RG-3 accounts
written off and AUCA accounts
c) SMA 2 Accounts d) SME 3 accounts
25 Which of the following is the benefit of settling Bank's dues under
Compromise Offer? (Select most suitable answer)
a) Recycling of funds to the Bank b) Economic Development of the
nation
c) Eco-socio development of the d) Incentive to the Branch Officials
nation for recovery in NPA accounts.
26 As per the Standard Operating Procedure on Settlement of Bank's Dues
through Compromise, an initial deposit of at least ……% of offer amount
is obtained from the Borrower as an evidence of his intention to pursue
the compromise settlement with the Bank.
a) 10% b) 5%
c) 15% d) 20%
27 For calculation of NPV, the maximum estimated time to realize the
securities may be taken as ------- years from the date of notice under
section 13(2) in case of SARFAESI action.
a) 5 b) 7
c) 10 d) None of the above
28 For calculation of NPV, the maximum estimated time to realize the
securities may be taken as ------- years from the date of notice under
section 13(2) in case of DRT/Civil Court action.
a) 3 b) 5
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 c) 7 d) None of the above
29 The valuation report should be less than ------ months old for sale
of properties for initiating / considering under Private Treaty/
SARFAESI Act 2002 and Settlement of dues through compromise.
a) 12 b) 24
c) 36 d) 48
30 In case of Compromise Settlement for arriving at the compromise
amount for cases where the value of security is Rs. 1 cr and above,
two valuation reports from Bank's approved valuers have to be
obtained and the ......... value has to be taken into account for deciding
the compromise amount
a) Higher b) Lower
c) Average d) None of the above
31 An award made by the Lok Adalat is deemed to be a
a) Decree of a Sessions court b) Decree of a civil court
c) Decree of a criminal court d) Decreee of a Special Court
32 In case of sanction of compromise proposal, repayment period shall not
be extended beyond a period of 18 months without obtaining
administrative approval from an official not below the rank of--------------
--------.
a) CGM b) GM
c) DMD d) Not required to obtain
administrative approval
33 Branches can participate in Lok Adalats to be organised by Civil
Courts involving an amount up to Rs…………………….
a) Rs.1.00 lacs b) Rs.10.00 lacs
c) Irrespective of loan amount d) Rs.20.00 lacs
34 Monetary ceiling of cases in Lok Adalats to be organised by
DRTs/DRATs
a) Rs.5 lacs b) No limit for DRTS/DRATS
c) Rs.10 lacs d) Rs.20 lacs
35 In case of a loan that has been settled in Lok Adalat The compromise
amount may be agreed to be paid in monthly/quarterly instalments or
depending on the income generation of the defendant. However, such
repayments should be made within a period not exceeding a total period
of ...... months.
a) 12 b) 24
c) 36 d) 48
36 You are the Chief Manager of the RACPC in a Metro Centre, your
Maintenance Officer requests to guide him regarding how many
notices are required to be sent to the borrower (Other than
Guarantor) before effecting the sale of the Car?
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 a) 6 notices b) 3 notices
c) 2 notices d) 1 notice is sufficient

37 Who is the authorized officer for seizure of vehicles under Loan

agreement,
a) Sanctioning authority of any scale b) Sanctioning authority of IV and
Above
c) CM (CRO) at RBO d) RM of the region

38 For seizure under SARFAESI act, what is the amount due

a) NO Minimum amount b) The amount due should not be
less than 15% of principal plus
interest
c) The amount due should not be d) The amount due should not be
less than 20% of principal plus less than 10% of principal plus
interest interest
39 What is the notice period prescribed for seizure of vehicle under
SARFAESI act
a) Minimum 30 days of notice for b) Minimum 60 days of notice for
seizure and Minimum 60 seizure and Minimum 30 days’
days’ notice for intended sale notice for intended sale
c) Minimum 45 days of notice for d) Minimum 60 days of notice for
seizure and Minimum 30 days’ seizure and Minimum 45 days’
notice for intended sale notice for intended sale

40 Your Credit Officer has come to you for doubt clarification. He wants to
know what is the amount to be deposited by the Borrower with the
Appellate Tribunal when Borrower has decided to file an Appeal with
DRAT?
a) 25% b) 75%
c) 50% d) 10%
41 All existing AUCAs of Rs. lacs and above in NBG have to be
migrated to SARG.
a) Rs.10 lacs b) Rs.15 lacs
c) Rs.20 lacs d) Rs.25 lacs
42 Accounts with outstanding of Rs……..shall be migrated to SAMB
a) 10 crores b) 20 lacs
c) 10 lacs d) All Stressed Assets of SMA-2
and worst irrespective of
outstanding

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43 Defaulter Borrower(s) with outstanding of -----------will be declared as
Willful Defaulters in terms of the definition of Willful Default prescribed
by RBI
a) Above Rs. 25.00 lacs b) Rs.25 lac and above
c) Above Rs. 50.00 lacs d) Rs.50 lac and above
44 Can a Branch consider the Compromise Offer given by the Willful
Defaulter? (Select most correct answer)
a) Yes b) No
c) Yes, subject to Administrative d) No, as RBI has prohibited the
Clearance from Competent Banks from accepting the
Authorities Compromise Offers from Willful
Defaulters.
45 What is the threshold default (amount) which can trigger an IBC
Process in respect of a Corporate entity?

a) Rs. 1.00 Lac b) Rs.1.00 Crore

c) Rs.50.00 Lacs d) Rs.50.00 Crore
46 Under IBC who has given power to makes regulations to be adopted by
Insolvency Professional?
a) Insolvency and Bankruptcy Board b) National Company Law Tribunal
of India
c) Ministry of Corporate Affairs d) Governing Board of the
Insolvency Professional Agency

47 Full form of OCAS

a) Online Customer Acquisition b) Online Customer Acquisition
System Solution
c) Online Consumer Acquisition d) Online Consumer Acquisition
System Solution
48 Which of the following is not an external sourcing entity
a) ALC b) ELC
c) BST d) SSL
49 The role of HLC limited to
a) KYC Verification b) Sourcing
c) Pre-Sanction Survey d) Post Sanction Survey
50 Which of the following is not the member in tripartite partnership with
our Bank
a) Deal4Loans b) PaisaBazaar.com
c) LoanBazaar.com d) Bank-bazaar.com

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 ANSWERS TO MCQs-NPA Management & Sourcing

1 B 2 A 3 B 4 A 5 C
6 C 7 A 8 B 9 B 10 D
11 A 12 A 13 D 14 D 15 B
16 A 17 C 18 C 19 B 20 C
21 B 22 C 23 B 24 A 25 A
26 A 27 B 28 A 29 C 30 A
31 B 32 A 33 D 34 B 35 C
36 B 37 A 38 C 39 B 40 C
41 C 42 A 43 B 44 C 45 B
46 A 47 B 48 C 49 B 50 C

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