o ; myky (Conn eANCHAR NIGAM LIMITED. o ee , . A ENTERPRISR) 4 501-B, STATESMAN HOUSE, ; . Sheff MA . BARAKHMBA ROAD, NEW DELHI-~ 110 001 : VIBBE/Credit @and/200¢~. 6 Dated 28, 02.2006 fo The All Circle IFAs Subject:- BSNL Corporate office has signed MoU with Canara various loans for BSNI L's employee on all India bases. 2. Assigned copy of the MOU is Gnclosed for necessary action at your end. A co, of the same is also placed on BSNL’ Ny 's intranet side http://www intranet.bsni.co.in under head Director (Finance), sub-he, ad Budget & Banking Finance (BBF). 3. You are requested take necessary action for wide Publicity of the scheme in your circle. 7 Bank on 27.2.2006 for hh (KC.G.K Pillai) Dy. Director General (BBF) Enclosure: Copy of MOU . DR _Citeme Leen Cornulle, * Cnr & Netra . Mere isu wiul Vail_—_ = a BHARAT SANCHAR NIGAM LIMITED. (A GOVT. OF INDIA ENTERPRISE) ! 501-B, STATESMAN HOUSE, BARAKHMBA ROAD, NEW DELHI - 140 004 No. 1-9/BBF/Staff Loan/2005-06 Dated 08.03.2006 The All Circle IFAs Subject: - Implementation of the scheme for various Employees’ Loans through Canara Bank Pa Kindly refer to this office letter of even No. dated 28.2.2008, whereby @ copy of the MOU (signed with Canara Bank) for various loans for BSNL employees was forwarded to you. 2. For implementation of the scheme, you are requested to issue instructions to all SSAs in the circle to take up the matter with Canara Bank branch located at Sea HO for sanction/disbursement of loan. In case there is more (hay one branch, at least one branch may be nominated for sanction/disbursement of loan to BSNL employees 3, As per MOU, it is not mandatory to_open sala account with Canara ing the ODO for Bank.” Employee has fo sign a salary_mandate_aulhoriZ Fedualion of installinent-of the loan from the salary and rem fo the Canara Bank ie employee is ranch which has disbursed the loan amount. In case Pred to some other place, an entry may be made: in the LPC for the ranteeding amount of the loan with the instruction to remit the installment aerevared from the salary of the employee to the branch from where the ‘employee has taken the loan. / 4. This scheme is available only to the BSNL employees. BSNL / employee will collect he Loan Application ‘form from the Canara Bank, fill up the : Same and submit to the nominated branch_of 1 bank along with Gecurity/documents to be submitted for various loans. .s_ per Annexuré he fpank will forward the application form to the af ized officers nominated by the EA's of Circle/SSA HQ for verification of sa ry and r “verification BSNL will return the loan application to the bai 5, The name and specimen signatures of the officers who are authorized to verify the loan application may be forwarded to the nominated branch of Canara Bank, so that the process of sanction and disbursement of loans may be started at the earliest. scanned with CamA copy of this letter is also B ; placed on BSN e Jiveww.intranetbsni.co.in) under head “Director (Finan cet judget & Banking Finance (BBF). ee 7. You are requested to take ict Diba Necessary action for wide publicity of the Sdl- (K.C.G.K Pillai) | Enclosure: Annexure-| eo one aaa \\ \ SECURITY TO HOUSING LOANS: i) | Equitable mortgage of house being financed. \ | Legal Scrutiny Report by bank panel advocate ahd valuation of the \ property by bank panel valuer. There are no processing OR other \ \ charges by the Bank. However, advocate and valuer fee (as ‘the case | \may be) has to be paid by the borrower. This fee amount can be Annexure: BE SUBMITTED AS PER THE SCHEME “ascertained by the concerned Bank Branch Manager, as it varies ds per iy | state regulations and local conditions, though this amount would be \ nominal. | \ ¥ B),, Suitable Co obligation/guarantee HOME IMPROVEMENT LOAN: A) For repairs to the existing house: Mortgage of the house B) For Assets created out of the loan: Hypothecation of the items: purchased out of bank loan C} Suitable Co obligation/Guarahtee 3.| GAR LOAN: | A 1A) Hypothecation of the vehicle being purchased, by noting bank lien in | RC book 8B). Suitable co obligation/Guarantes 4, TWO WHEELER LOAN: @ 'A)_Hypothecation ofthe vehicle being purchased, by noting bank lien in RC book. 1 ' B) Suitable co obligation/Guarantee 5. PERSONAL LOAN: 'A) Suitable co obligation cu WitpucATIONAL 1.0/0: co obligation of the Parenti Suitable third pat ‘ophigaticn I gi3at ae ~e ) 8) NATURAL CALAMITY LOAM: Suitable co obligation sata A) THER documents soquired: « ont pay oe 2 Prac A tooth the ent WE submited, phere ‘op oan AES ao yl Cd sorrower(s)" at Scanned with CamDELHI MEMORANDUM OF UNDERSTANDIN THIS MEMORANDUM OF UNDERSTNADING IS MADE AS 01 F THIS 27 OF FEBRUARY, 2006 era tals | BETWEEN {rws. Bharat Sanchar Nigam Limited (BSNL), a company incorporated und Companies Act, 1956, having: its registered’ ofcelcarporate oifice at 105 “Fiene Statesman House, Barakhamba Road, New Delhi ~ 110 004, through MR. RAJEEV | SINGH, JOINT DEPUTY DIRECTOR GENERAL (BF), (duly authorised fo enter into the | [ resent (MOU), hereinafter referred to as "BSNL" (which erm shall mean and include ts || Sudcessors in ttle, subsidiaries| associates, affiliates, and assigns) of the ONE PART. \ it . |" Gahara Bank; a body corporate, constituted. under the Banking Companies (Acquisition | & Transfer. of. Undertaking) \Act,,.1970, ;having ts, head office at 112, J.C. Road, | Bahgalore and its Marketing Unit, Delhi Circle Office, Ansal Towers, Mezzanine Floor, 38! Nehru Place,, New Delhi - 110 019, through MR. T.Y. PRABHU, GENERAL MANAGER, (duty. authorized to enter, into the present. MOU, hereinafter referred to as | Bank" (which: term shall mean and, include its Successors in title, subsidiaries, | | associates, affiliates, and assigns) of the OTHER PART. ia wer joey AND, Pig . Be atid Bank are collectively referred to as “the parties”. | WHEREAS: 1. we. Bharat Sanchar Nigam Limited (BSNL) is a company incorporated under,the Companies Act, 1956.and has its registered office/corporate office at 10” Floor, ! Statesman House, Barakhamba Road, New Delhi ~ 110 001. BSNL is the largest i iplecom operating company in Inca having 36 lakhs employees cross: the ountry with a turn over-of Rs. 33,450 crores. " ne | 2. To-benefit its employees; BSNL desires a Special Loan Package for its entire staff strength on All India basis: alk pursuance of the above, vide letter no, BSNL/39-6/SR/2005 dated:September 22); 2005, | BSNL. invited; Bank’s: proposal for various loans. facilities for. its mployees on all India basis. fr 4 . sign, 4. Vide letter no. DCOIMU/BSNL/103/2005/RPJ dated October 10, 2005, Bank | submitted its proposal incorporating the basic terms and conditions governing the loan along with the specimen copies of the agreements/documents required to be signed by BSNL's employee(s) (hereinafter refetted to as the “Borrower(s)" at the time of taking the loan. anlicu wWithl Val5. Consequent upon the di cussions held b Sonseauent tween BSNL 16, 2008; meatit® ater no. Doom 2o4raoosmes dey November tions tothe satisfaction Bone eet IL, agreed in principle to tena id ual retail loan quan 50 er re Sal) approximately on the tere eon OOSIRPJ dated October 10) J lated December 16, 2005, \ Now THIS DEED WITNESSETH'AS FOLLows: That Bank shall grant the loan to BSNL's employee ||| 38 Pet their requirement an iS tol \d the sare ate as follows: | ) ’a), Housing Loan’ qed (s) under the vatious head b) House Repair/Renovatio n/Addition/Alteration Loan 1.8) Home improvement Loan pean | a)" Car Loan 1 &P |.) Two Wheeler Loan aN “4) Personal Loan’ ¢..9)..Educational Loan \r “h)’ Natural Calainity Loan i ‘he toans under the various heads as mentioried above are collectively referred to as the “loan facilities" , refer | 2. That the general terms. and conditions such as Purpose of loan, Maximum | Amount, “Margin. “Money, Multiple "of! salary! Recovery’ of installments | (EMl+Interest) and Eligibility ‘ete! w.rt: the loan facilities applicable in respective i cases are annexed herewith as Schedule, (note-eneloce Annexure-A upto ; date in view of letter, dated 16.12.2005) - | 3., [That the Financial Quotations i.e. Floating Rate of Interest, Fixed rate of Interest and Average time,'for Loan’ Sanctioh, for the loan facilities applicable. in ‘fespective cases are’ annexed herewith as Schedule-ll, (note-enclose Annexure-B upto date In view of igttgrdatod 16.12.2005) formalities for Personal loan ‘and Natural Calamity Loan with Corporate ie ‘Guskontee are under’ finalization’ arid shall be incorporated as annexure to this MOU subsequently. . BS cannecrwitncam. That the loan facilities shall be sanctioned by the branch head the agreed concessions and relaxations, ac or Bank wih ot 8. That the maximum limits for the loan faciiies are subject to the income/repaying capacity of Borrowers. 7. That the security for the loan facilities shall be as applicable on the respective schemes, | 3 6a mandate to be registered by BSNL for recovery of installments from the salaries/relirementitetminal benefits of Borrowers and remittance to the \ | tespective branches. || |9, ‘That minimum netitake Home salary of 25% (against the:normal:40%) shall be Wid maihtained after meeting the loan installments. ' i 140. ‘That the loan shall be sanctioned in such'a manner that at no-stage the net take home salary after meeting: loan installment is less that'25% ofithe gross salary after meeting all liabilities/deductions viz. GPF; EMI,:Ihcome Tax,’ Insurance etc, ae case of retirement/resignation/termination of Borrower, BSNL-undertakes ‘ho to release terminal ‘benefits -without_oblaining prior. written “No. Objection a | | tificate” from the financing branch of Bank. In case the liability 1S outstanding Mi “Such terminal benefits shall be routed through the account of Borrower with the ei rent of ani. lem api oe ie ped salary mena nyistered with BSNL) Sra Tha Bank shal not charge processing charges on the loan. Soe. te Bank shall | charge the interest on ‘monthly rests on the daily reducing - lance basis. =~ 14, That the floating_rate_of interest wil be: changed as and when the Benchmark _ | 15, That fixed rate of interest shall: remain fixed during the entire tenure of the loan bject to reset clause at an interval of every 5 years in case of Housing loan and 8 years in case of Canmobile loans: © <1 8 16. That Bank shall not charge penal interest for prepaymenvforeclosure dfloans. 17.'That except Housing loan and Educational Loan, the repayment shall commence lone month after disbuFsal of the loan. H aye let 18, That for the purpose of Housing lost} tronths moratorium period is granted for \ i its construction andi taking: possession of the ‘concemed 'flavhouse. The 1 Fepayment shall start immediately after 18 months ‘from the date of ‘first disbursement or from the date of taking foasaasion of the flat/house, avt is earlier! 1a ] : vva icu witth Val19. That in case of repair/renovation/addit lonfalteration of th improvement loan for furnishing the house or for puree lio ' items, repayment shall immediately start from the next month ofits clsbursenreey 20, fat in Education loan, repayment is of pf ic . pptional during the cours ple rate of interest shall be charged during tidy Period. the. vepajnant period is maximum 60 to 84 EMIs. First installment shall start after 6 months from ‘completion of course or getting an employment, whichever is earlier. | 21, Thal this deed shall be bindin, 22. That any notice, demand or be delivered by personal ser 19 upon the parties, their successors and assigns, fequest under this deed shall be in writing, and shall or shall be sent by postage prepaid, registered or certified mail, telexed, telecopied or sent by person or overnight courier return receipt requested, addressed if to the parties, at the respective address set forth in the heading of this deed, designate in writing. Each n given on the date it is deliver ‘or at such other address as the addressee may ice, demand or request hereunder shall be deemed i ed, in the case of personal service, or the date itis { deposited with the Postal Service, in the case of certified or registered mail. 23. That the parties shall hereby irrevocably submit to the exclusive jurisdiction of the Court and Tribunals in New Delhi for purposes of any sui proceeding which relates to this deed. action or other 24. That no amendment, notification or release from or waiver of any provision 1 hereof shall be effective unle ss in writing and signed by the parties and shall be | effective only in the specific instance and for the specific purpose for which given. } 25, That this deed maj be deemed an original, but same instrument. 26. That this deed and the right accordance.with and governed by the substantive laws of the India 27.1f any provision hereof is found by a court of competent jurisdiction to be prohibited or unenforceable prohibition or unenforceability, and such prohibition or unenforceability shall not invalidate the balance of su unenforceable, nor invalidate 28. In the event of any cispute or difference relating to; arising from or connects Je executed in two or more counterparts, each of which shall ail of which together shall constitute one and the : is and obligations hereunder shall be construed in ‘ it shall be ineffective only to the extent of such Ich provision to the extent it is not prohibited or the other provisions hereof. With this MOU, such dispute or difference shall be referred by either party to the Mpitration of one of the Arbitrators In the Department of Public Enterprises to be . nominated by the Secretary t fo the Government of India, in charge of Bureau of i hall not be Public Enterprises. The ‘Apbitration and Conciliation Act 1996 she “applicable to ‘the Arbitration under this clause. The award of the Arbitrator shall be binding upon the parties to the dispute, provided, however, any party Bggrieved by such award may make a further reference for setting aside on revision of award to the Law ‘Secretary, Department of Legal Affairs, Ministry of Cave jastice, Government of India. Upon such reference, the dispute shall be Scanned with Camdecided by the Law Secretary, whose decision shall bind the ; parties finally and conclusively. The parties in the dispute will share equally th ji as intimated by the Arbitrator. nee 998k of anal wie the bank shall nominate at least one branch (in case thelr more than one ranch of the bank) at each Secondary Switching Area (Telecom Revenue District) for sanction, payment of loan and payment of Emi recovered by BSNL. This MOU shall be binding upon both the parties on all India level. 430. Al other terms and conditions of the bid leer No, BSNL/S9-6/SR/2006 dated SSeplember 22, 2005 shall be applicable on both the parties 31. Ether party can terminate the MOU by giving a notice, of 80 days in wing, However, all the clauses ‘of the MOU shall be binding and enforceable in respect of outstanding loans on the date of termination irrespective of such termination. the parties have here unto affixed their respective Hands to \N WITNESS WHEREOF, month and year first hereinabove written at New Delhi these presents on the day, (RAJEEV SINGH) (TY. PRABJU) JOINT DEPUTY DIRECTOR GENERAL (BF) GENERAL MANAGER WIS. BHARAT SANCHAR NIGHAM LIMITED CANARA BANK CORPORATE OFFICE, NEW DELHI. CIRCLE OFFICE, NEW DELHI WITNESSES: WITNESSES: (SUSHIL SHARMA) (K. GOPALAKRISHNAN) ASSISTANT DIRECTOR GENERAL (TM) DEPUTY GENERAL MANAGER WIS BSNL, CORPORATE OFFICE, NEW DELHI CANARA BANK, C.O. NEW DELHI Seal to be affixed Ifthe Articles of Association provides for the same) mony took place on 27-02-2006 in the presence of (Note: Commor INB: The MOU signing cere! BSNLEU representatives.) ova cu witth ValSUB: VARIOUS RETAIL LOAN TIE-UP ARRANGEMENT ON ALL INDIA. BASIS FOR THE ENTIRE STAFF STRENGTH OF M/S BHARAT SANCHAR | NIGAM LIMITED (M/S BSNL) : SCHEDULE. | - ANNEXURE-A OF MOU DT. 27.02.2006 ' f ENERAL TERMS AND CONDITION OF G/ BANK i Toan Purpose of | Maximum Amount] Margin Mulliple of Recovery of —] Eligibim ‘ Loan Money | Salary inataiments | (EMI Psinty Housing | Purchase of | Ra, 80 Laks for 10% Tor new | Maximom of 6 oan Pct purchase! onstruction of | house, 20% | Years gross Purchase of Fiat | Housel Fat Rs. 10 Laks fr | for old house | income without Repali ftom Housing| repaidrenovation and Rs. | 15% for | Collsteral Renovation’ | Board! Lacs for furnishing the | repatirenovati | Securty. Spouse Me ‘Addtiow — | Development| house OR Purchase of | on & purchase | Income can. be alteration | Agencyi Private | house hold ems of house hod | included. Maximum 240 | 3Years'or | | Voanand — | Butera! ems Minimum net | Cooperative {ake home salary sevice Home Society should be 25% Improvement | Construction of of Gross after Loanter | House ‘meeting al! home Repatrs/Renovat Tables furnishing | ionfadtion! ‘and purchase | alteration of ' of any house | house Mat hold ems Cartoan | Purchase 6 | SO% of On Read Price of | 10% for New | Minimum net | Maximum —120 | Ninna Motor Car (New | New Car ~ in case of Old | Car ~ 25% for | take home salary | Months — Gross t ‘and O¥d) ~ Max. | Car 75% of “is Market | Old Car should be 25% | Subject to Salary It Of age of ald Cat | Value No maximum ‘of Grose after | remaining age of | shouts be} | ‘should be within | ceting ofan amount ‘meeting all | the vehicle Re 1.00 . Years Nabities Lacs per Personal | Any Glass Offeers Max Ras ‘Subeat to Loan Miscetaneous | Lacs Class.l Officers Max. ‘axmum of 10 requirement) | Rs. 4 Lacs Classi] © —— | Months Gross | Maximumeo | 1 Year ef | Contingency | Employees Max. Re. 25 Salary. Minimum | Efile regular Lees and Classi net. take “home service Employees Max Rs. 1.00 Salary should be Lac 25% of Goss 1 Equeatonal | For Financing | Max. Rs. 750 For Islands | UploRS4Lae | Depending upon | Ene repayment | Loan oan’ the study of | & Max. Rs. 15 Lacs for | NIL: above | the requirement | should be made | granted to SeliDependenis. | Abroad Rs.4iacs 5% | nature of study | 25 per our needy and | | =" ilands. and for inland and | and prospects of | normal smontorious Aboard 18% for | employment | educational loan | students ‘Abroad Study | opportunities | scheme OR during the Femaining tenure of Indviduars service peiod, Wwhlehaver early : To the aifeciod | Maximum of Rs, £0,000 3 Monihs Gross SNC I {amiies of BSH Employees Employees in 36 Months whose natural Family is calamiie salary should be c 25% of Gross calamity Scanned with Cam£ G eneral Terms and Cor ditions of Can; ra B: India Basis ~ MOU DT- cre L Employees on all @ ' 1. For the purpose of Housi construction and takiog ee 18 Months moratorium period is granted for its $ start immediately after 1 ne date med FlalHouse, Repayment wt c '8 Months from the date date of taking possession of the FlatHouse, vhlcheves erent coe 2. In case of RepairiRenovationiAd idition/Alternatior Home Improvement Loan for furnishing the house hold items, repayment would immed disbursement. ee Of the existing house OR OR for purchasing the house from the next month of its \n Educational Loan, repayment is optional during the course of study & Simple ROI would be charged during study period. Repayment Period is Maximum 60 to 84 EMIs. First Installment would start after 6 months from ‘Completion of Course OR getting an employment, whichever is earlier. 4. The above maximum limits of loan will be Subject to the repaying capacity of the | employee concerned. ' The Loan will be sanctioned in such a manner that at no stage, the net take home salary of an employee is less than 25% of his/her total emoluments after meeting all liabilities/deductions viz, GPF, EMI, Income tax, Insurance etc. ‘The BSNL employees can pre-pone the repayment without any penal charges. The interest would be charged o daily reducing balance basis. No Processing Charges will be levied by the Bank, of ep No Mls BSNL will register our Salary Mandate for deducting our EMIs from the monthly emoluments of the employee concerned and remitting the same to our nearby Branch as per our mutual convenience. In addition to that M/s BSNL will not release the superannuation benefits to the retiring employees without an INC tom el nent rata ncaa eee esl cpp austere then the superannuation benefits should be routed through his/her loan account maintained in the Branch concerned. 40. All our Interest Rate is on the basis of daily reducing balance and monthly compounded. . Other Terms & Conditions: . it J ¥ Loans will be sanctioned by the branch head with all the propose concessions/relaxations. i i Je to the respective schemes. | Y- Security for the loans will be as applicable to | Scanned with CamY Salary mandate to b © registered Salen by BSNL i laries of employees and remittance te the roapea oh han, Hom the ¥ Incase of rei vm Sesee emenlestgnaioermination of the employee, BSNL rele al benefits without obtai th cing tren I Habit is outstanging such terminal benefits to be wonee na bane fe employee with the financing branch to enable closes General Terms and Conditions of G: al anara Bank for BSNL Employees India Basis ~ MOU DT. 2 ozboe Emolovess on India Basis ~ MOU DT, 27.02.2006 ¥ The maximum limits for the above ject, 7 i loans quoted i incomelrepaying capacity ofthe employees the v Except Housing and Educational Loans, repayment to commence one month after availing the loan. Minimum Net take home salary of 25% (Against the normal 40%) to be maintained after meeting the proposed loan instalment. ‘The loan will be sanctioned in such a manner that at no stage the net take home salary after meeting proposed loan instalment is less than 25% of the gross salary. No penal interest will be charged for prepayment/forectosure of loans, No processing charges will be charged on the loans. The interest will be charged on monthly rests on the dally reducing balance basis. ¥. Floating rate of interest will change as and when the Bench a \ensing 1 ‘of the ‘Bank is changed i.e. increase or deciesy | \ lnereaes ‘or decrease in the rate of interest by the same points. & nt. Yur floating rate is linked to our Bank's BPLR which is 10.75% p.a. at preset i inject Fixed rate of interest will remain fixed during the entire tenure of the loan sub 1s and 3. to reset clause at an Interval of every 5 years: in case of Housing Loan: years in ease of Canmoblle loans. Scanned with CamSUB: VARIOUS RI BAS ETAIL LOAN TIE. ‘SIS FOR THE ENTIRE STAFF TRENT Osa ofA aes, NIGAM LIMITED (MTS Don eS EHABAT SANCI SCH EDULE - ll - ANNEDURE-B OF MOU DT. 27/02/2006 FINANCIAL TERMS OF CANARA BANK FOR VARIOUS LOANS Si] Loan Tyy pe 7 Fi No. Foaling Rte of Fired Rate = of interest # 5 ‘oan S ROI 7.00% oe RepairfinovatoniAdiionateraton Strate end | App toate Loan and Home improvement Loan] amount Prat ekg F home furnishing and purchase of Se 5} nav houoe hold Hers ame ar Los an ROUT OUR PATE Not Maximum years repayments | Applicable RET RSaR |r | cha red Above 5 years & papers upto 7 years repayments, 3. __| Personal Loan ROI 8.00% PA | ROIG.50% — | Maximum T ir PA day after : getting required papers @__| Education Loan ROI 9.00% PA upto | Not Maximum & Rs. 7.50 Lacs ROI | Applicable | days after 9.50% PA beyond gelting required 7 _ Rs, 7.50 Lacs papers 3, _ | Natural Calanyly Loan ROI7.50% PA | ROVES0% — | Maximum + PA day after gelting required papers * Floating rate of interest will change as per the changes in the bench-mark prime lending rate (BPLR) of Canara Bank, i.e. increase of decrease in the interest rate by the same basis points as in the bench-mark prime lending rate of Canara Bank, The change in interest will be effective from the 1% of the respective month in which the changed irae marke prime lending rate (BPLR) as been made effective by Canara Bank, Our Floating RO! is linked with our BPLR, presently itis @ 10. 75% P.A, # Fixed rate of interest will remain fixed during the total tenure of loan subject to a reset clause in the Agreement at the interval of every 5 years for housing loan and 3 years for Car Loan. However, the rate of interest will be the “adjusted interest rate on the date of Soreement. The “adjusted interes) rere’ will bo quoted rate +/- changes ™ the bane aor prime lending rate (BPLR) of rae yn Bank up tothe date of agreement Io loa between bank and the employees However, whenever there will be any reduction In rates by ‘SBI, we will match the reductions accordingly. ova Icu witth Ua