on boarding induction training programme for directly recruited

On Boarding Induction

Training Programme

for

Directly Recruited Officers

Name : _______________E.C. No.:__________ Period : From:__________To:_____________ Training Centre : _______________________________

Baroda Academy Inventing Methods for Igniting Minds


PREFACE

Congratulations on your appointment in Bank of Baroda, one of the Premier Banking Institute of India. We are eagerly awaiting your joining Bank of Baroda Family.

While you will undergo a very comprehensive On boarding Induction Programme to make you professional Banker, we have prepared this reference material to give you an Overview of Banking which you may go through during this intervening period.

The reference material is divided into following segments:

Section A- Banking General - Overview of Banking

Section B – HR Policy & Service Conditions

Each section is further divided into various Chapters and each Chapter is followed by a few Objective Questions to Test Your Understanding. While going through reference material, in case, you have any doubt, please note down and the same will be clarified to you during your Class-Room training.

It is expected that you will go through this reference material before joining the Bank and the Bank will conduct one Objective Test on the first day to Test Your Understanding of the reference material. Various other technical and functional aspects will be dealt in the Class-Room Training.

Wishing you a very successful learning experience and we are eagerly awaiting your joining in the Bank of Baroda Family. Kamlesh Patel DGM & I/C Principal Staff College Bank of Baroda 15/3/2013


INDEX

Section/Group Topics Page No.

1. What do you need to become a Successful Professional Banker 1

2. Bank of Baroda’s Core Values 3

A. Banking – General

1. Overview of Banking 5

2.

- Know Your Bank - New Initiatives Taken by Bank - Awards and Accolades

18 30 33

3. Various Laws Relating To Bankers 36

4. Banker Customer Relationship 49

5. Know Your Customer and Anti Money Laundering Guidelines 59

B. HR Policies and Service Conditions

1. HR Policies and Service Conditions of Officers 73

2. “HRNes, Payroll, Knowledge Management Portal 107

Baroda Academy Inventing Methods for Igniting Mind 1

WHAT DO YOU NEED TO BECOME A SUCCESSFUL PROFESSIONAL BANKER?

Role of Bank

Banks serve an essential role in the economic life of the country. The economy‘s health is closely related to the reliability of its banking system. Banks ensure money and valuables are safe and provide borrowing and lending services, a variety of accounts, and a lot more.

What does a Banker do?

Bankers are essential professionals that are vital to the function of the bank. Bankers provide their customers with a variety of services. They help with initial banking requests such as opening a checking or saving account and other money handling options. They offer a variety of services such as, deposits, Money transfer, safe deposit locker lending to Corporate, SMEs, Priority Sector and much more. They are trained to answer any questions that customers have about their banking needs and help customers effectively manage their accounts and fund. Bankers strive to provide excellent customer service and establish good relationships with their customers.

What are the prospects for a career in banking?

Career as a banker is an excellent choice for individuals who feel comfortable handling other people‘s money and giving advice on how to manage it. Career advancements and opportunities are excellent and usually depend on the merits of the individual. Details are given in separate Chapter on career progression in Bank ofBaroda.

What Competencies are required for becoming successful Banker

Bankers must have excellent communication and customer service skills and have a genuine interest in working with people. Confidence, motivation, and sales ability are also essential qualities in the banking field.

Successful bankers are usually performance-driven, passionate about their work, keen to learn and eager to accept challenges.

In terms of Knowledge, Skills and Attitude, requirement is as under:

Knowledge:

Knowledge of Bank‘s Products & Services Knowledge of Rules / Regulations Knowledge of Bank‘s Policies / Vision Knowledge of Technology (particularly Finacle andother IT applications of Bank)

Skill

Marketing Skills Communication Skills / Soft Skills Managerial Skills Public Relations / Networking Skills Time Management Skills Decision making Skills

Attitude

Business Savvy Techno Savvy


Customer Savvy Financial acumen Result oriented Process oriented Willingness to assume responsibility

Summary

Basically, as a Bank Officer you should:

Business Savvy Present yourself in smart manner Keep yourself updated with the latest trend and happening in the area of Banking,

Market & Economy (National & International) Display courteous behaviour towards customers, peers, superiors, subordinates Render best customer service during / after business hours with full devotion,

dedication, honesty & integrity


BANK OF BARODA‟S CORE VALUES

Our values determine our thoughts and actions. Values acts as internal compass and therefore provides direction. When common values are chosen and owned by an Individual or a team, it creates a powerful emotional connect. Individuals/teams following core values are dynamics and can accomplish miraculous results. As we grow, our processes and strategies may change, but our values should always remain the same. Our core values should always be the framework from which we make all of our decisions.

Bank of Baroda is practicing following core values:

Customer centricity-Taking Ownership of Customer Service

The ownership of excellent customer service lies with each and every employee irrespective of role assigned to him/her. We have developed culture of quick responsiveness as far as customer needs are concerned. Bank of Baroda wants to create a new benchmark in the dissemination of customer service, demonstrating care and concern that can catapult the standard of our service to create better value for our customers. Inculcating the culture of sales/cross sales and providing personal service has made us a great differentiator in the market.

Trust, Transparency and Togetherness

Bank of Baroda strongly believes in these -3- values and all our dealings with our stake holders i.e. Customers, Employees and Regulators are in tune with these values. We are transparent in all our dealings. We adopt collaborative approach. We encourage and Complement each other. We believe in Team spirit. We want to create an environment that is friendly, warm and exciting. We encourage diversity in ideas, opinions, and points of view.

We believe that in general, the best ideas and decisions are made from the bottom up, meaning by those on the front lines that are closest to the issues and/or the customers. The role of a Manager is to remove obstacles and enable his/her direct report to succeed.

Many of the Bank‘s best ideas have been the direct result of informal interactions outside of the office.

We are more than just a team, though – we are a family. We watch out for each other, care for each other, and go above and beyond for each other because we believe in each other and we trust each other. We work together but we also play together. Our bonds go far beyond the typical ―co-workers‖ relationship found at most other organisations.

DEW

Dream Big, Enjoy life and Work hard. These are -3- values followed by all 43000 Barodians. We stretch our goals trusting our potential, we work hard to achieve it and in the process, we enjoy life also.

Commitment to Excellence

Going Extra mile in whatever we do. In whatever role, Barodians do something that‘s above and beyond what‘s expected. We are not an average Bank, our service is not average, and we don‘t want our people to be average.


Every One is treated equally/Respecting each Role

Our belief is every role in organization is important and, therefore, every person performing such role deserves dignity. It is expected that seniors in Organisation will play role of mentor in grooming young ones and young ones will exhibit due respect to seniority and age. We believe that every person want opportunity to speak their minds and have their ideas, opinions and feelings heard regardless of their gender, age or hierarchy level.

Humility

While we celebrate our individual and team successes, we are not arrogant nor do we treat others differently from how we would want to be treated. Instead, we carry ourselves with a quiet confidence, because we believe that in the long run our character will speak for itself.

Observing Integrity and Honesty i.e. Walking the Talk and Talking the Walk

We believe in observing integrity at all times . Every Barodian is expected to honor his/her words/promises. Every Barodian is expected to be trustworthy and honest – in words and actions.

Pursue growth and learning

At Bank of Baroda, we think it‘s important for employees to grow both personally and professionally. All Barodians endevour to acquire new skill sets, develop leadership traits and making learning a part of life style to remain more agile in the work space.

We believe that every employee is endowed with immense potential than what the employee himself/herself realizes. Our goal is to help employees unlock this potential. But it has to be a joint effort: You have to be ready to face, want to challenge and stretch yourself in order to make it happen.

We strongly believe that our key human resources need to develop leadership qualities to build capacity to outperform the competition.

Embrace and drive change

We are ever evolving. Part of being in a growing organization is that change is constant. We Barodians embrace it enthusiastically and, perhaps even more important, encourage and drive it.

Although change can and will come from all directions, it‘s important that most of the changes in the Bank are driven from the bottom up – from the people who are on the front lines, closer to the customers and/or issues.

Never accept or be too comfortable with the status quo, because the organisations that get into trouble are historically the ones that aren‘t able to adapt to change and respond quickly enough.

Creative and Open-Minded

We approach situations and challenges with an open mind .We never want to become complacent and accept the status quo just because that‘s the way things have always been done. We are always seeking adventure and having fun exploring new possibilities. By having the freedom to be creative in our solutions, we end up making our own luck. Passion, Commitment, Competence and determination of Barodians will surely take the Bank to greater heights.


“OVERVIEW OF BANKING”

Quick Bites

Indian Banking system comprises Public Sector Banks, Private Sector Banks, Foreign Banks, Cooperative Banks

In India earliest bank started in 1770 named as ―Bank of Hindostan‖ Reserve Bank of India established in 1935 with paid up capital of INR 5 crore State Bank of India Act passed in 1955. 14 commercial banks were nationalised on July 19,1969 and other six banks onApril

15,1980 Financial sector reforms started in 1991. Narsimhan Committee submitted its first report in 1992. KYC/AML Act passed in2002. RBI issued draft guidelines on BASEL II in2005 To be acquainted with the ‗Emerging trends in Banking‘

Evolution of banking:

The word ‘bank‘ relates to the German word ‗banck‘, which means heap or mound or joint stock fund. From this the Italian word ‗banco‘ , meaning heap of money was coined. Another school of thought says that the word bank is derived from the word ‗bancus‘ or ‗banque‘ which means bench. Initially the bankers, viz. the Jews in Lombardy transacted their business on benches in the marketplace and bench resembled the bank counters to a certain extent. If a banker failed, his banque/bench was broken up by the public. Hence the work ‗bankrupt‘ evolved. In other words, bankrupt means a person who has lost all his money, wealth, financial resources etc.

In India, the earliest bank was started in 1770 named as ―Bank of Hindostan‖ byM/s. Alexander and Company of Calcutta (Kolkata). But it was closed down in the year 1832. However, subsequently three presidency banks were set up, viz. Bank of Bengal in 1809, Bank of Bombay (Mumbai) in 1840 and Bank of Madras (Chennai) in 1843. These were quasi-government institutions incorporated under the charter from local government which also contributed to the share capital. They were initially entrusted with the cash balances of government and management of public debt. In the year 1921, all these banks were amalgamated into Imperial Bank of India with the deposit and advances figures of INR 73 crores and INR 54 crores respectively, spread over nearly 80 branches.

According to Section 5(b) of the Banking Regulation Act, 1949, banking is accepting, for the purpose of lending or investment, of deposits of money from the public repayable on demand or otherwise and withdraw by cash, cheque, draft or otherwise. Banking is nothing but efficiently mobilizing low cost deposits from savers, who otherwise have low return options and then efficiently allocating funds to creditworthy borrowers who have very few capital funds to be deployed on any viable project/business proposal/opportunities Section 49(A) prohibits any institution, other than banking company, from accepting deposit money from public for withdrawal by cheque. The overall banking business in the year of Independence ie 1947, nationalization in 1969 and the present one, as revealed in Table 1, throw a bird‘s eye view of the growth in the banking sector during the 60 years period.


TABLE 1 (INR in Crs.)

Parameters 1947 1969 April „2010 June,2012 (Approx)

Deposits 1,019 4,640 45,06,747 54,34,225

Advances 424 3,572 32,14,742 39,96,976

Total Business 1,443 8,212 77,21,489 94,31,201 With increase in the number of bank branches significantly from about less than 100 branches in 1947 to around 72,000 in 2009, the total business of the banks has also leapfrogged, with Compound Annual Growth Rate (CAGR) of nearly 15 percent for 60 long years, a creditable achievement by any standard. During the last couple of years, while many global; financial institutions failed, in India on account of the stringent regulatory measures, we have been able to neutralize the effect of global meltdown in the financial sector.

Reserve Bank of India Established

As recommended by the Indian Central Banking Enquiry Committee, the Reserve Bank of India Act was passed in 1934 and the Reserve Bank of India (RBI) was established in the year 1935 with fully paid share capital of INR 5.00 crores, in the private sector to regulate issue of bank notes, securities, monetary stability in India and to operate the currency and credit system of the country for its economic development.Later, after independence in 1947, the entire share capital was acquired by the Government of India and the RBI was nationalized in 1949.

State Bank of India gets its name

In 1955, the State Bank of India (SBI) Act was passed by nationalizing the Imperial Bank of India and SBI was born with the objectives of providing banking facilitated on a large scale in rural and semi-urban areas for various public purposes. Nationalization of Imperial Bank of India heralded the entry of public sector culture into commercial banking in 1959, SBI (subsidiary banks) Act was passed and the following eight banks were formed, viz State Bank of Bikaner, State Bank of Jaipur, State Bank of Indore, State Bank of Mysore, State Bank of Patiala, State Bank of Hyderabad, State Bank of Saurashtra and State Bank of Travancore.

Bank nationalization

Apart from the SBI, 14 commercial banks having deposits of INR 50 crores and above were nationalized on July 19, 1969 and again on April 15, 1980 ,6 banks having deposits of INR 200 crores and above were nationalised. Justifying nationalization, the former prime minister, late Indira Gandhi, in a broadcast to the nation, had stated:

At the time of nationalization of banks in the year 1969, the data pertaining to commercial banks were as shown in Table 2.

Table 2 (INR in crores)

Type of Commercial Banks Branches Deposits Advances

State Bank of India 1,569 948 966

SBI Associates 893 291 219

14 Nationalised Banks 4,134 2,627 1,813


Total Public Sector Banks 6,596 3,866 2,998

Private Banks 1,666 774 574

All Commercial Banks 8,262 4,640 3,572

Share of PSBs 80% 83% 84%

Current Composition of banking services

The bulk of India's banking system is made up of the "Scheduled Commercial Banks" (SCBs) which includes both the Public Sector banks (PSBs), in which the government must retain a stake of more than 51% and the Private Sector banks. The latter include the "Old Private sector" banks that have been around for decades and the "New Private sector banks that came into existence in the past twenty years during India's financial reforms and include newly established banks such as Yes Bank, Axis bank and existing institutions that were converted into commercial banks, such as the former development institution ICICI and specialized lenders such as HDFC.

Public Sector Banks hold 74% of Total Assets Privare Sector -19 % Foreign Banks-7 %

BANKS‟ ROLE IN INDIAN ECONOMY

In the economic development of India, banks have played significant role in the following areas, sectors and fields:

Payment and settlement system through cheque. Capital formation Creation of money/credit Bridging the organized and unorganized sectors. Impetus to rural and semi-urban development. Entrepreneur and small enterprise development. Helping agriculture, small scale industries (SSIs), weaker section, etc. Regulation of national savings. Development of infrastructure through project financing. Maintenance of balance of trade Promotion of export trade. Sectoral development through prioritization of credit deployment/delivery. Catalyst in the social change and rural development. Taking banking system to rural and remote areas and significantly redeeming the

rural populace from the clutches of the private money lenders. Speedy funds transfer. Direct and indirect job opportunities. Minimisation or avoidance of diversion of funds for unlawful activities such as

speculation, hoarding terrorism etc. Removal of regional disparities in the economic development. Helped in implementation of various welfare measures initiated by the government. Reducing the concentration of wealth in the hands of few industrialists.

It was noticed that commercial banks were directing their advances to large and medium scale industries, ignoring the priority sector such as agriculture, SSI, exports etc. Hence social control was brought in with the aim ‗ to regulate social and economic life so as to


obtain the optimum growth rate for our economy and to prevent at the same time, monopolistic trend, concentration of economic power and misdirection of resources.‘

Private sector banks indirectly motivate the PSBs by offering a healthy competitive environment through:

a. Professional management b. Healthy competition c. Encouragement of foreign investment d. Access to foreign capital markets e. Innovation and expertise

As per the present governor of RBI, all villages having population of over 2,000 have already been linked to banking/financial services by 2012. Financial inclusion provides tremendous challenges and opportunities at the bottom of the pyramid of population and it all depends on the penetrating capacity of the institutions.

Technology adoption

PSBs have fully computerized their branches through core banking solution or centralized banking solution. Also banks have introduced Electronic Funds Transfer (EFT), Real Time Cross Settlement (RTGS), cheque truncation, mobile banking, Internet banking, etc. for effecting and ensuring quick as well as efficient transfer of funds between banks. Innovative banking through ATMs, phone banking, virtual banking, e-banking, Internet banking, Mobile banking etc. has come a long way in satisfying the ever increasing needs of the younger generation.

Mobile banking is likely to revolutionise the banking practices in India, for the reason that there are more mobile subscribers than the combined strength of bank account holders and credit/debit card users. Therefore, mobile banking has good potential for improving the financial inclusion proposition initiated in India. Quite a bit of money would flow wireless on mobile networks, from different strata of populace. Mobile banking is an effective tool to manage funds at any point of time, wherever one is placed. By simply owning a mobile, anyone can become a bank customer. Banks tap the opportunity to access a whole set of customers who otherwise could not have entered a bank by themselves, without the bank opening a new branch nearby. Mobile banking is actually a graduation from ATM, both of which with adequate security measures are going to revolutionise the banking concept.

In terms of the recent guidelines of RBI, banks which have implemented core banking solution may put in place daily/monthly transaction limit depending on bank‘s own risk perception for mobile banking so as to facilitate small ticket transaction. Putting in place a stable Unique Identification Number for the growing Indian populace would enable reaching and streamlining of banking through financial inclusion.

Reforms and the way forward

Sound banking system, playing a crucial role in the financial system, stimulated economic growth by mobilization of mass savings and allocate efficiently the resources for productive and consumption purposes. During the last -2- decades in banking, quite a good number of reforms have been initiated and few more are expected in days to come.


CONCLUSION

In the past 60 years, Indian banking scenario has dramatically changed benefiting the elite class through technology leverage and the mass populace below the poverty line (BPL) through financial inclusion.

Nationalization of banks, opening up the sector for private banks during the last decade, thrust given on priority sector lending, export credit, financial inclusion, universal banking, consolidation, takeover, core banking mechanism through technology leverage, etc have paved way for enlarging the customer base and reach. Population per branch has significantly come down during the last 60 years.

Banking services are now oriented to ‗anyhow, anywhere, anytime and any type of banking‘ as change is the only certainly that would govern banking. Nevertheless, following financial liberalization for the past nearly 2 decades, the deposit pattern has undergone change as the household sector share in the deposits has been on the declining trend from more than 69 percent to less than 59 percent, as revealed in the RBI Report on Currency and Finance. Consequent to the nation‘s commitment to the World trade Organization, sea change is expected in the way banks function in the country, as it would be customer friendly and tailor made to suit the needs of various clients. PSBs may lose their market share in the business as one cannot have the cake and eat it too.

The challenges before the banking leaders are to successively drive the socioeconomic agenda of the government and yet at the same time retain the commercial competitiveness. After a period of full in branch expansion on account of click and mouse banking of new generation banks, the PSBs as well as the new generation private sector banks have turned their attention to brick and mortar banking, either through the organic or inorganic growth/expansion. Branch expansion in the remove corners of the country, operationalisation of various developmental and rescue schemes for the common man and ensuring their success while improving the overall efficiency are the challenges ahead of the banking leaders.

Banks in India can ill-afford to play fast and lose by throwing risk management away through the window. They need to stick to core competencies rather than venture into financially engineered derivative products which have resulted in economic downturn in the western countries. A banker can only be a banker and if he has to be someone else in the complex financial products, he may have to face the same crisis as we see in the US or Europe. Banking system in India is surviving the onslaught of financial turnmoil, witnessed in US and Europe, mainly because of conservative policies, close monitoring by regulator and periodical guidance from the RBI and finance ministry.

In the next couple of years or so, nearly 50 percent of the banking populace would retire as most of them were recruited during the nationalization and large scale branch opening periods. With technology advancement, higher business coverage through core banking platform, tendency for outsourcing, the banking personnel strength is expected to slim down drastically from the present level of nearly 8 lacs and get rationalized.

The growth achieved on account of the spread of banking culture through the length and breadth of the country during the last 40 years since nationalization and also 63 years since independence is quite unparalleled in the international banking scenario.

Annexure:


Significant Developments in Indian Banking

Year Development

1955 Imperial Bank of India nationalized and renamed as State Bank of India to pave way for social banking

1962 Deposit Insurance Scheme to protect the interest of depositors was introduced with an amount of INR 1,500/-.

1968 Scheme of Social Control over Banks was introduced. National Credit Council was set up to set lending targets for commercial banks.

1969 14 major banks with deposit base of INR 50 crores and above were nationalized so as to platform for branch expansion. Since then, population per branch came down drastically from 65,000 in 1969 to around 15,000 in 2009.

1970 Focus was shifted from trade and business to agricultural farm credit and small industries.

1972 Lead Bank Scheme was launched to provide impetus to rural and backward areas. Differential Rate of Interest with low interest rate on the loans to poor borrowers – DRI scheme was introduced with a direction of 1 percent of credit to be under DRI scheme, 40 percent of which to go to SC/ST sectors, resulting in significant contribution for business entity towards margin money.

1975 Five Regional Rural Banks (RRBs) set up and formulated. Though Tandon and Chore Committee, scientific lending norms were introduced so as to deploy the funds that were scare when credit squeeze was prevailing and also to ensure that borrower‘s stake is crystallized.

1976 Regional Rural Bank was set up with the central government, sponsoring bank and the state government contributing 50:35:15 ratio in capital formation.

1978 Deposit Insurance and Credit Guarantee Corporation (DICGC) was established.

1979 Integrated Rural Development Programme (IRDP) was launched to benefit the rural populance.

1980 Six more banks were nationalized and class banking changed into mass banking. 20 Point Programme was introduced to ensure efficient production and distribution of essential goods and services to the community and to raise income and standard of living of weaker section.

1982 NABARD and EXIM bank came into existance

1983 Scheme for Self Employment for Educated Unemployed Youth was introduced.

1985 Nomination facility introduced

1988 Introduction of capital adequacy requirements as part of Basel Committee norms.

1989 Service area approach

1991 Financial sector reforms, akin to what is practiced in western countries, were introduced.

1992 Securities scam surfaced and shocked the banking sector with the undesirable link with the capital market.


1992-1993Rs.

Narasinhman Committee – First Report on Financial Sector reform Income Recognition & Asset Classification (IRAC) norms introduced. Standard assets, non-performing assets (NPAs)- substandard, doubtful and loss assets, capital adequacy, phasing out directed credit programme, deregulation of interest rate, slowly waning out the health code system, etc. resulted in banks reporting net loss, depending on certain norms.

1994 Photograph in deposit a/c

1993 Deposit insurance amount raised to INR 1 lac per depositor.

1994 Introduced Board for Financial Supervision so as to focus on regulation.

1995 Put in place Off-Site Monitoring and Online Supervision (OSMOS) mechanism.

1995 Banking Ombudsman

1996 New Private sector banks were allowed entry with certain stipulated minimum capital funds.

1998 Narsimham Committee: Second Report. PSBs allowed total capital market through public issue of shares.

1999 Asset Liability Management (ALM) concepts were introduced as risk management

2001 Term lending institutions turned into universal banks to share the cake with PSBs.

2002 The Know Your Customer (KYC) norms strengthened to check money launching. Securitisation & Reconstruction of Financials Assets and Enforcement of Security Interest (Sarfaesi) Act was passed to strengthen the hands of banks in the recovery of impaired loan assets, without going through the lengthy legal process.

2003 The first financial asset reconstruction company, viz. Asset Reconstruction Company (India) Ltd. (ARCIL) was formed.

2005 RBI issued draft guidelines on Basel II norms released by Bank for International Settlements (BIS) in June 2004.

2007 Final RBI guidelines were issued on Basel II norms for compliance.

2008 Banks with international presence complied with the Basel II norms in March 2008 RBI set up Financial Literacy and Credit Counseling (FLCC), as a step to encourage financial inclusion concept.

2009 Banks without international presence were also required to comply with Basel II norms by March 2009. With effect from April 2009, the foreign investors can have stake in banks, up to a maximum of 74 percent, up from, 25 percent. As part of rationalization of capital market public issue collection, concept of Application Supported Blocked Amount (ASBA) is introduced.


EMERGING TRENDS IN BANKING

Regulatory Ratio at a Glance: CRR (Sec 42, RBI Act): 4%, of net demand and time liabilities, to ensure liquidity and

solvency to be kept with RBI. SLR (Sec 24 , B. R. Act): 23%, Cash in hand, Gold owned by bank, Balance with

RBI/SBI and Investment in unencumbered approved government securities. Bank Rate: 8.75 %, Rate at which RBI lends to Banks/FIs. Repo Rate: 7.75 %, Injection of liquidity by RBI. Reverse Repo Rate: 6.75 %, Absorption of liquidity by RBI.

Provisioning requirements for restructured loans

RBI is going to increase the banks‘ provisioning requirements for restructured loans, classified as standard assets and has proposed a five per cent provisioning for all new standard restructured loans of banks with effect from April 1 in its draft guidelines issued. It also has proposed a phased increase in provisioning on existing restructured loans to five per cent by March 2015.

Earlier, banks had to provide just two per cent for restructured loans but RBI raised the provisioning by 75 basis points to 2.75 per cent in its second-quarter review of monetary policy on October 30, pending issue of final norms on the issue.

According to the new draft norms released, banks and financial institutions will have to achieve 3.75 per cent provisioning on existing standard restructured loans by March 31, 2014 and provide five per cent for all recast loans by March 31, 2015.

RBI said the new provisioning requirements might put pressure on banks, but the central bank will take into consideration stakeholders‘ views before finalising the guidelines. The RBI has called for comments on the draft guidelines on or before February 28.

Separately, RBI Deputy Governor told that the central bank was in dialogue with market participants over a possible move to align the held-to-maturity ratio with the statutory liquidity ratio. Currently, the held-to-maturity ratio is 25 per cent and the statutory liquidity ratio is 23 per cent.

Banking laws amendment bill, 2011

The government introduced a bill in the Lok Sabha that seeks to align voting rights in private banks with shareholding, enhance the central bank's regulatory powers over banks and give greater freedom to state-run banks to manage their capital. The Banking Laws (Amendment) Bill 2011, proposes to raise the ceiling on voting rights of shareholders of nationalised banks from 1% to 10%. The higher voting rights will help the government attract capital in state-run banks. It also empowers state-run banks to issue bonus shares and make rights issues to raise capital for expansion and meet regulatory requirements. For private sector banks, it removes the voting right restriction of 10% and aligns it with actual shareholding. The amendments will also enhance the regulatory powers of the Reserve Bank of India (RBI) and enable nationalised banks to increase or decrease their authorised capital with approval from the government and the RBI. These banks have a capital ceiling of 3,000 crore. In addition, the Bill proposes to confer powers upon the RBI to impose conditions it deems necessary while granting approval for acquisition of 5% or more share capital of a banking company.


The amendment will also empower the banking regulator to seek information and returns from associate enterprises of banking companies besides inspecting them.

Guidelines for “Licensing of New Banks in the Private Sector”

The Reserve Bank of India issued the final guidelines for new bank licences, allowing any type of company to apply for a permit, paving the way for new banks after nine years. RBI said it would allow applications till July 1. No specific industry was barred from applying, although draft rules issued in August 2011 had barred real estate companies and brokerages.

But the central bank has put stiff conditions. For example, the guidelines said a promoter group‘s ―business model should not be misaligned with the banking model‖ and its business should not potentially put the bank and the banking system at risk on account of ―group activities which are speculative or subject to high asset price volatility‖.

NEW LENDER GUIDELINES:

RBI said successful applicants have a year to set up a bank. The new banks must make a stock market listing within three years. It said the aspirants will have to set up non-operative financial-holding companies

(NOFHC), which should hold a minimum 40 per cent of the equity capital in the bank. This has to be reduced to 20 per cent within 10 years and 15 per cent in 12 years from the date of start of business. An NOFHC will be registered as a non-banking financial company with RBI and will be governed separately.

At least half the directors at such holding companies shouldn‘t be connected to the founder groups, RBI said. ―Entities, groups should have a record of sound credentials and integrity, be financially sound with a successful track record of 10 years.‖

The minimum equity capital required for setting up a bank under the new rules is Rs 500 crore. Foreign shareholding shouldn‘t exceed 49 per cent in the first five years.

The new banks must open at least a fourth of its branches in rural areas – a condition, many experts said, almost impossible to achieve.

RBI said applicants meeting the eligibility criteria might not get a permit. Feedback on the applicants will be sought from enforcement and investigative agencies, it said. Public sector entities will be allowed to apply for a licence. The draft norms had talked about private sector entities only. Companies that have expressed interest in setting up banks include L&T Finance Holdings, Aditya Birla Financial Services, Shriram Transport Finance, Tata Capital, Reliance Capital and Bajaj Finserv., Religare Enterprises and Mahindra Financial Services.

Banks urging individual borrowers to buy covers

Banks in the country are urging individual borrowers to secure their loans by purchasing insurance policies amid growing concerns that non-performing assets (NPAs) are likely to increase in the country.

The country's banks have enjoyed lower levels of NPAs. However, there are growing concerns that many borrowers might be unable to replay loans in the coming months. According to banking officials, both public and private sector banks are convincing their customers to buy policies to cover their personal loans and overdraft facilities

http://www.business-standard.com/content/general_pdf/022313_01.pdf

http://www.topnews.in/banks-urging-individual-borrowers-buy-covers-2356880


RBI scraps limit on mobile transactions

Reserve Bank of India (RBI) has announced its decision to do away with the limit of Rs 50,000 per customer per day imposed on mobile transactions. The limit on mobile transactions was imposed in 2009 by the regulator. Under the new rules, the banks will be allowed to fix their own limit on mobile transactions for customers in the country. The RBI had issued guidelines on mobile banking transactions in India in 2008 and had placed certain monetary restrictions on fund transactions.

Banks should have to reduce their bulk deposits

Recently, RBI has instructed the banks to shed off their bulging bulk deposit portfolio. Some banks in the country have started including BOB for which even they may reduce rates for bulk deposits. This move will help the banks to go for the race to increase savings account interest rates in order to attract more customers. However, state-run banks appear more cautious in increasing their rates.

Damodaran committee recommendations on Customer Service:

The Committee, headed by former SEBI chairman M Damodaran, was set up by the central bank to look into the issues of customer services and evaluate the existing system of grievance redressal mechanism prevalent in banks, its structure and efficacy and recommend measures for expeditious resolution of complaints to strengthen the Banking Code and Standard Board of India (BCSBI) further. The Reserve Bank of India (RBI) has accepted 88 out of the 230 recommendations made by the Damodaran committee on customer services. Sources say that the 88 recommendations, where bankers had consensus, include recommendations such as banks should sell standalone financial products and not bundle it with any other product, have been accepted by the RBI.

Tightening Shadow Banking activities:

The Reserve Bank of India (RBI) is looking at ―shadow banking‖ activities closely and has tightened the regulations accordingly. ―Next on the agenda is increasing the surveillance on shadow banking‖. According to RBI, the unprecedented increase in shadow banking was a reason for the global financial crisis of 2008. Strengthening regulations on such businesses have been addressed in the Basel-III norms, proposed to become applicable from 2017-18. Lately, non-banking finance companies (NBFCs) have attracted the central bank‘s attention for various reasons. RBI said, ―We are pro-NBFC, but it being essentially a part of the shadow banking system, it has to be tightened under Basel-III norms.‖ According to the draft, banks would get time up to March 2017 to meet capital adequacy norms. Basel implementation has been made longer to ensure least disruption, as banks‘ earnings are likely to come under pressure due to the higher capital requirements. Banks would need to raise productivity to protect return on equity. RBI has set up a committee to look into ways of developing a fixed rate loans model in the current interest rate environment.

Deregulation of Savings A/c interest rate

Recently, the RBI said banks are free to determine their savings bank deposit interest rate, subject to the following two conditions:

http://www.topnews.in/rbi-scraps-limit-mobile-transactions-2350109

http://www.topnews.in/some-banks-may-reduce-rates-bulk-deposits-2349083


First, each bank will have to offer a uniform interest rate on savings bank deposits up to Rs 1 lakh, irrespective of the amount in the account within this limit. Second, for savings bank deposits over Rs 1 lakh, a bank may provide differential rates of interest, if it so chooses but should not be discriminated from customer to customer.

Till date barring few small banks, no any bank has changed the SB interest rate.

Banking by the year 2015:

The survey was conducted by IBM research unit on future banking scenario, which revealed five key trends that will determine market success in 2015:

Customers take control- Customers will be smart, informed and savvy users of financial services. They will only be interested in service providers that can meet their very specific individual needs.

Specialized niche competitors- Market consolidation will continue, making the mega banks even bigger. But they will face many competitors including community banks, industry specialists and non-bank banks that specialize in providing specific services. Partner-competitor relationships will arise.

A new workforce- The need for productivity and efficiency will create new labour and work practices. But there will also be intense competition to attract and retain talent.

Regulated transparency- The need to comply with globally enforced standards of transparency and accountability will force the adoption by banks of integrated, enterprise-wide systems and processes.

Sharply focused technology- The enabler of all this change will be technology that supports rapid, accurate decision making and greater operational flexibility and efficiency. The successful specialists will be those who can track and analyze specific customer needs and speedily meet them with profitable, reliable products.

Even, banks will source products and services from many specialized and best-in-class service providers, including independents and other banks providing white-label products and services. Innovation in products, processes, relationships & business models will be the primary path to sustainable growth.

Installing „Off-site ATM‟

As per the guidelines of RBI, the customer maintaining Saving Bank A/c may withdraw the money from any Bank‘s ATM, 5 times with ceiling of Rs.10000 per transaction during any calendar month without any charge. Now, even balance enquiry also considered as a transaction (towards max.5 free transaction). But for such transactions certain charge has been prescribed by RBI which is to be paid by the Customer‘s Bank to the Bank whose ATM is being used. Also, this facility is available free of cost to only Saving bank a/c holders and other a/c holders may enjoy this facility @Rs20 per transaction.

So, now individual Bank has to formulate its strategy regarding installation of new ATMs or sharing of other Bank‘s ATM. This is emerged as a new area of commission income and even banks are now focusing on other Bank‘s ATM where queue is there, so that an additional ATM can be installed, just to tap the commission income.


RBI tightens salary account opening rule:

The RBI has directed banks to ask for one more proof such as Passport, Driving licence, PAN card, Voter‘s identity card or utility bills, in addition to the certificate issued by the employers while opening salaried bank accounts. RBI feels that insistence on two documents will reduce the chances of misuse of account.

Foreign banks must be locally incorporated:

After the global financial crisis, regulators the world-over are insisting local incorporation to ensure that local businesses are not hurt if there is another any such unpleasant event. Incidentally, incase of banks present in India, such protection is already present, as foreign bank branches are required to maintain capital locally and meet prudential guidelines on capital adequacy & exposure limit. Even that, RBI now wants to conversion of foreign bank branches into wholly-owned subsidiaries, to exercise better control over the operations of foreign banks in India.

News having impact on banking:

Postal deptt. gets RBI nod for launch of prepaid debit cards (Rs.1000 to Rs.50000) & to install ATMs.

RBI allows RRBs to open branches in Tier- II centre without prior approval. Bank-wide portal for best services, where customer can enquire about the

return on deposit, cost of advances, etc. RBI wants to do away with post-dated cheques in all fresh loans and also

debating to put the charge on cash deposits and withdrawals in current accounts above certain limits by the banks

Setting of a Centralised KYC registry Cell for the entire financial sector through implementation of UCIC (Unique Customer Identification Coce).


TEST YOUR UNDERSTANDING 1. RBI was established in

a) 1935 b) 1940 c) 1949 d) 1955 e) 1950

2. In India financial sector reforms started in

a) 1985 b) 1988 c) 1991 d) 1995 e) 2000

3. Composition of Indian Public Sector Banks, Pvt Sector Banks and foreign Banks in

terms of total assets are a) 40%,30% &30% b) 50%, 30% &20% c) 60%,30% &10% d) 69%,21% &10% e) 74%,19% &7%

4. IRAC norms stand for

a) Income realisation and asset classification b) Income recognition and asset classification c) Income recognition and asset consolidation d) Interest realisation and asset classification e) Iiterest realisation and asset consolidation

5. BCSBI stands for

a) Banking company and standard Board of India b) Banking codes and standard Board of India c) Banking codes and strategy Board of India d) Banking company and strategy Board of India e) Banking codes and supervisory Board of India

Q 1 2 3 4 5

A A C E B B


“Know Your Bank”

Quick Bites Bank of Baroda was established on 20th July, 1908 at Baroda by ruler of erstwhile Baroda

State, His Excellency Maharaja Sayajirao Gaekwad-III. Ten banks have merged with BOB till date. Our logo, the ‗Baroda Sun‘ reflects our corporate brand identity. As on 28-02-2013, our Bank is having 4171 branches, 56 Regional offices and 13 Zonal

offices in India. We also have one ‗Life Insurance‘ and one ‗Mutual Fund‘ joint venture. We have -98 overseas branches and offices spread over -24- countries. In our International presence, we have -8- subsidiaries and -2- joint venture. Bank has kick started a comprehensive change programme called ‗Project Navnirmaan‘

focusing on business process Reengineering . Bank‘s Branches are redesigned as ―Baroda Next‖ branches with beautiful layouts and more effective roles.

As a part of said project, Bank has also established -51- SME Loan Factories ,and -40- Retail Loan Factories for fast delivery of our products.

To facilitate Financial Inclusion, Bank has established -52- ‗Baroda Grameen Pramarsh Kendras‘ (BGPK) and -47- ‗Baroda Swarojgar Vikas Sansthan‘ (BSVS)

Bank has also undertaken another important Project SPARSH for bringing excellence in HR. In 2011–12 Bank‘s total business grew by 25.9% to Rs 6,72,248 crores and net profit grew

by 18% to Rs 5,006.96 crores. Total Business up 17.1% (y-o-y) to Rs 7,14,051 crore by end-Dec, 2012 Net NPAs (%) at 1.12% as on 31s Dec, 2012 Total Staff as on 1st March 2013—42118 in which officers composition 17035.

Our Mission: Glorious Past: Bank of Baroda made a humble beginning on 20th July 1908 as Bank of Baroda Limited and was registered under the Baroda Companies Act of 1897, with a paid up capital of Rs. 10 lacs. Ruler of erstwhile Baroda State, His Excellancy Maharaja Sayajirao Gaekwad-III founded the Bank.


Bank of Baroda has completed long, eventful and glorious journey of more than 104 years. Bank has record of making uninterrupted profits during all these years. Soon after establishment, the Bank extended its operations to three other commercial centres of Gujarat namely, Surat, Mehsana and Navsari. In 1919, the Bank crossed the state frontiers by setting up Mumbai Main Office.

Recent Picture of Baroda Main Office, our Bank‟s Ist Branch

In the year 1935 Bank became a scheduled Bank. RBI included the Bank in the second schedule of RBI. The first safe deposit lockers were provided at Baroda in 1939. At the time of independence in 1947, Bank of Baroda was a regional bank with 48 branches. However, it found a place in India‘s ‗Fortune Five‘ list of Banks. During 1953 – 1958, Bank opened 30 new offices and had become an all-India Bank. As many as ten banks have merged with Bank of Baroda during its journey so far: Hind Bank Ltd (1958) New Citizen Bank of India Ltd (1961) Surat Banking Corporation (1963) Tamil Nadu Central Bank (1964) Umbergaon People Bank (1964) Traders Bank Limited (1988) Bareilly Corporation Bank Ltd (1998) Benares State Bank Ltd (2002) South Gujarat Local Area Bank Ltd (2004) Memon Cooperative Bank Limited (2011)

Vibrant Present Our Logo

Our logo, the ‗Baroda Sun‘ is a unique representation of a universal symbol. It comprises dual ‗B‘ letterforms that hold the rays of the rising sun. The sun is an excellent representation of what our Bank stands for. It is the single most powerful source of light and energy- its far reaching rays dispel darkness to illuminate everything they touch. The single-colour, compelling vermilion palette stands for hope and energy. At Bank of Baroda, we seek to be the source that will help all our stakeholders realise their goals. To our customer, we seek to be one-stop, reliable partners who will help them address different financial


needs. To our employees, we offer rewarding careers and to our investors and business partners, maximum return on their investment.

We also recognize that our bank is characterized by diversity. Our network of branches spans geographical and cultural boundaries and rural-urban divide. Our customers come from a wide spectrum of industries and backgrounds. The Baroda Sun is a fitting face for our brand because it is a universal symbol of dynamism and optimism – it is meaningful for our many audiences and easily decoded by all.

Our corporate brand identity is a signal that we recognize and are prepared for new business paradigms in a globalised world. At the same time, we will always stay in touch with our heritage and enduring relationships on which our bank is founded. By adopting a symbol as simple and powerful as the Baroda Sun, we hope to communicate both.

Board of Directors

The constitution of the Board of Directors is governed by the provisions of the Banking Regulation Act, 1949, Banking Companies (Acquisition and Transfer of Undertakings Act, 1970, Nationalised Banks (Management & Miscellaneous Provisions) Scheme, 1970, which satisfies the requirements of Corporate Governance as envisaged in the Listing Agreement.

Board of Directors

Sh S S Mundra Chairman &Managing Director

Sh sudhir Kumar Jain Sh P. Srinivas Sh Ranjan Dhawan Executive Director Executive Director Executive Director

Sh Alok Nigam Sh Sudershan Sen Sh Ajay Mathur Govt Director RBI Nominee


Sh.V.B.Chavan Sh Vinil Kumar Saxena Sh Satya Dev Tripathi

Sh Maulin Vaishnav Sh Surendra Singh Bhandari Sh Rajib Sekhar Sahoo


I. Organizational Set Up (a) Bank‟s Administrative Set Up:

Bank‘s administrative set up is depicted as under:

BARODA CORPORATE OFFICE & HEAD OFFICE, BARODA

EXECUTIVE DIRECTOR

OVERSEAS BRANCH BANKING

DOMESTIC OPERATIONS

INTERNATIONAL OPERATIONS

B

DOMESTIC FOREIGN

BUSINESS

OVERSEAS

SUBSIDIARIES

EXECUTIVE DIRECTOR

EXECUTIVE DIRECTOR

BOARD OF DIRECTORS

CHAIRMAN & MANAGING DIRECTOR

ASSOCIATES &

SUBSIDIARIES

ZONAL OFFICE

CORPORATE GENERAL MANAGERS MUMBAI

REGIONAL OFFICE

A

H

BACK OFFICE SUPPORT- SMELF/RLF/RBO/CBO/CSO

KNOWLEDGE SUPPORT –BARODA ACADEMY

R

N

C


(Baroda Corporate Centre, Mumbai) Corporate Office

(‗Baroda House‘, Mandvi, Baroda) Head Office

At the apex level, we have Head Office at Baroda and Corporate Office at Mumbai. Whole

India is divided into -13- Zones and -56- Regions as given below:

Sr.

No

Name of Zone Name of Regions

1. Greater Mumbai 1. Mumbai Metro North

2. Mumbai Metro South

3. Mumbai Metro East

2. Maharashtra & Goa 1. Aurangabad

2. Goa & Western Maharashtra

3. Nagpur

4. Pune

3. South Gujarat Zone 1. Baroda

2. Bharuch

3. Bulsar

4. Panchmahal

5. Surat

4. North Gujarat Zone 1. Ahmedabad

2. Anand

3. Jamnagar, Junagadh & Kutch

4. Mehsana

5. Rajkot

5. Rajasthan 1. Ajmer

2. Bharatpur

3. Jaipur

4. Jodhpur

5. Kota

6. Udaipur

6. Northern 1. Delhi Metro – I

2. Delhi Metro – II

3. Chandigarh


4. Indraprasth

5. Punjab, Jammu & Kashmir

7. Tamil Nadu & Kerala 1. Chennai Metro

2. Kerala

3. Tamilnadu

8. Karnataka & AP 1. Andhra Pradesh-I

2. Andhra Pradesh-II

3. Karnataka

9. Eastern 1. Kolkata Metro

2. North East

3. West Bengal & Sikkim

10. Eastern U.P. 1. Allahabad

2. Faizabad

3. Kanpur

4. Lucknow

5. Sultanpur

6. Raibareli

7. Varanasi

11. Western U.P. & Uttrakhand 1. Agra

2. Bareilly

3. Dehradun

4. Haldwani

5. Sahjahanpur

12. M.P. & Chhattisgarh 1. Bhopal

2. Indore

3. Raipur

13. Bihar, Jharkhand & Orissa 1. Bihar

2. Jharkhand

3. Muzaffarpur

4. Orissa

(b) Bank‟s Network:

At present the Bank is having total network of 4171 branches in India (as on 28-02-2013).

27322853 2926

31003364

3909

4171

0

500

1000

1500

2000

2500

3000

3500

4000

4500

FY07 FY08 FY09 FY10 FY11 May/12 Feb-13

No. of Domestic Branches


Regional Break-up of Domestic Branches as on 28 Feb 2013

Metro Urban Semi-Urban Rural

889 758 1,132 1,392

We have one State of Art, Specialised Integrated Treasury Branch (SITB) in Mumbai, which is looking after investments, liquidity and forex management for the bank in addition to maintenance of SLR & CRR requirements.

Indian Subsidiaries & Joint Ventures

The Bank has following Indian Subsidiaries:

1. BOBCARDS Ltd. 2. BOB Capital Market Ltd. 3. The Nainital Bank Limited

The Bank has one Life Insurance joint venture, „India First‟ with Andhra Bank and Legal & General of UK. The Bank has one Mutual Fund joint venture called „Baroda Pioneer Asset Management‟ with Pioneer Investments. Our Bank has sponsored following Regional Rural Banks (RRBs):

(1) Baroda Uttar Pradesh Gramin Bank, Raebareli (2) Baroda Rajasthan Gramin Bank, Ajmer (3) Baroda Gujarat Gramin Bank, Bharuch (4) Nainital – Almora Kshetriya Gramin Bank, Haldwani (5) Jhabua – Dhar Kshetriya Gramin Bank, Jhabua

International Presence: Sun never Sets in Bank of Baroda

http://www.bankofbaroda.com/subsidiaries_jv.asp


In the year 1953, taking a pioneering step, the Bank opened its first overseas branch at Mombasa, Kenya on 14.12.1953 followed by two other branches at Kampala and Nairobi.

Subsequently, operations started in Dar-Es-Salaam in 1956 and in London in 1957. This was a great new beginning in the development of foreign exchange business. Since then, the Bank systematically opened branches/offices in various territories.

At present, the Bank has an overseas network 98 branches / offices in the following 24 countries:

* Australia * Bahamas * Bahrain * Belgium * Botswana * China * Fiji Island * Ghana * Guyana * Hong Kong * Kenya * Mauritius * New Zealand * South Africa * Seychelles * Sultanate of Oman * Singapore * Tanzania * Thailand * Trinidad & Tobago * Uganda * UAE * UK * USA*

The following are Bank‘s overseas subsidiaries:

1. Bank of Baroda (Kenya) Ltd. 2. Bank of Baroda (Uganda) Ltd. 3. Bank of Baroda (Guyana) Inc. 4. Bank of Baroda (Botswana) Ltd. 5. Bank of Baroda (Tanzania) Ltd. 6. Bank of Baroda (Trinidad & Tobago) Ltd. 7. Bank of Baroda (Ghana) Ltd. 8. Bank of Baroda (New Zealand) Ltd.

The Bank‘s presence in Zambia and Malaysia is through a joint venture. Project Navnirmaan:

Navnirmaan is a comprehensive change programme that seeks to rebuild the Bank for the

future. This change programme shall touch all aspects of the Bank‘s processes, structures

and systems with an objective to simplify processes, improve branch productivity and

provide best-in-class service to our customers. This is a change programme which seeks to

create the ‗Baroda Next‘, the brand promise that we are making to our customers at large.

Our Bank has partnered with well known consultants M/s Mckinsey & Company to take

this project forward.


‗Navnirmaan‘ has two main components:

Business Process Re-engineering (BPR) and

Organisational Restructuring (OR).

Business Process Re-engineering

Business Process Re-engineering has following objectives:

Improvement in branch productivity.

Best-in-class service levels for customer delight.

Redesign of front and back office processes and roles to reduce turnaround time and

to simplify processes.

Reduction in operating costs.

Organizational Restructuring:Organizational Restructuring has following objectives:

Appropriate organization structure and systems to support BPR and in line with

future business plans.

Sustainability of change programme through capability building.

To accomplish above objectives, following five different types of Back Offices are proposed:

1. Account Opening and Maintenance Lean Service Factory- Regional Back Office

This will accomplish following activities:

Account opening and enrichment – Savings and Current Account.


Generation of debit card request file & i-track number file for internet banking. Personalised cheque book issuance. Printing of customer statements and other intimations. CRM data entry. Changes in customer account details. Account closure. Account opening, renewal and printing of term deposits.

2. Payment Processing Centre -City Back Office

More automation is proposed to be carried out at the existing City Back Offices so that productivity of processing of cheques can be enhanced by 60%.

3. Credit Processing Centres - SMELF /Urban Retail Loan Factory

As part of business segmentation and to expedite our delivery mechanism, Bank has established -51- SME Loan Factories and -40- Retail Loan Factories which work on assembly line principal.

4. Business Intelligence Unit -Data Warehouse

Business Intelligence Unit will undertake following activities:

Generation of all MIS from CBS and ASCROM. Analysis of MIS. Communication of MIS to Branches, Regions, Zones and Corporate office.

5. Contact Centre

Bank has set up two Contact Centres in Lucknow & Baroda to fast address the customer queries & grievances.

Signature Tune

During the year FY12, your Bank introduced its Brand in Sonic Medium by launching a ―Signature Tune‖ on the occasion of its Bank‘s Foundation Day on 20th July, 2011. The prime purpose was to highlight the spirit of the Bank as a vibrant and energetic organization complementing the Logo. Your Bank will draw its mileage in positioning it strongly in the global market.

Baroda Academy

Implementation of BPR and OR will require learning of new skill sets for the employees. To train the employees on new desired skills, Staff College, Ahmedabad will be converted into Baroda Academy.


Training Structure

Staff College Ahmedabad

Bank of Baroda Institute of Information Technology

Gandhinagar

Training

Centres

Bareilly Baroda Bhopal Chennai Gandhinagar Jaipur Kolkata Lucknow Mumbai New Delhi Jamshedpur Pune Bangalore


“NEW INITIATIVES TAKEN BY BANK”

Major technology Initiatives:

As on 31st Dec 2011, the Bank‘s entire domestic, overseas and RRBs [i.e., five sponsored RRBs] related operations were on the CBS platform.

Bank has developed IT facilities for online/offline account opening through Business Correspondents under Financial Inclusion.

Bank‘s retail & corporate customers enjoy several facilities under its Internet Banking Delivery Channel. The SMS alerts of transactions are also implemented in the Internet Banking Portal.

Bank has implemented Internet Banking in 13 of its overseas territories, notably Oman, Tanzania, Uganda, Kenya, Mauritius, Seychelles, Botswana, New Zealand, UAE, Fiji, UK, Ghana &Australia

Bank has also implemented RapidFunds2India solution in all the major territories. Bank has built a State-of-the-Art Data Centre conforming to Uptime Institute Tier-3 standard

& a Disaster Recovery Site in different seismic zones to ensure uninterrupted banking services delivery to customers.

Bank‘s Mobile Banking (Baroda M-Connect) provides various facilities to its customers. Anti Money Laundering (AML) has been implemented in India and 23 of Bank‘s overseas

territories. Bank has developed an Integrated Global Treasury Solution in its major territories like U.K.,

UAE, Bahamas, Bahrain, Hong Kong, Singapore, Belgium, USA and India to achieve reduced cost of operations & better fund management.

Bank has a centralised SWIFT system for India & its 23 overseas territories. Internet Payment Gateway has been implemented to facilitate e-commerce transactions in

multi currencies across the globe. Bank has introduced the facility of Multiple Accounts being linked to a single Debit Card

(verified by Visa, CVV2) and also Mobile Number registration thru‘ ATMs in CBS for SMS Alerts.

E-tax payments thru‘ ATMs are also facilitated and Mobile ATMs are introduced in several cities.

To provide safe online banking services to its customers & protect them from phishing attacks, Bank has implemented a Fraud Management Solution.

Bank has set up two Contact Centres in Lucknow & Baroda to fast addresse the customer queries & grievances.

Back Office functions have been centralised in the Bank at City Back Offices & ten Regional Back Offices ( at Baroda, Jaipur, Lucknow, Bhopal, Coimbtore, Kolkata, Mumbai, Jamshedpur, New Delhi & Pune) to improve the delivery of services.

Cash Management Solution is implemented to provide operational support to customers‘ ALM.

Baroda e-trading has been launched for Retail and Corporate customers. Roll out of HRMS and Payroll. Baroda e- Pay - Electronic Utility Bill Payment Online Loan Application – Educational Loan, Home Loan, Car Loan Launching of Baroda Gift Card Introduced “Visa Platinum” Premium Debit Card• Travel Card in foreign currency is introduced. CTS -Cheque Truncation System implemented in Delhi and Grid based


CTS was implemented in Chennai, Coimbatore and Bangalore. CTS will be shortly implemented in Western Grid also.

Corporate Social Responsibility:

Bank of Baroda has been in the forefront for social commitment with its innovative approaches and products viz.

1. Baroda Swarojgar Vikas Sansthan 2. Baroda Grameen Paramarsh Kendras 3. Financial Literacy and Credit Counseling Centres (FLCC)

1. Baroda Swarojgar Vikas Sansthan

There are -47- Baroda Swarojgar Vikas Sansthan, the Bank has set up in 6 States of Bihar,Uttar Pradesh, Uttarakhand, Rajashthan, Gujarat & Maharashtra for the following purpose:

1. To train youth and impart them the knowledge and skill for taking up self employment ventures.

2. To train youth to develop the attitude for working in rural areas, in rural development projects.

3. To assist trained youth, in self employment as far as possible, in obtaining credit facilities from bank / other financial institution and to assist them in setting up their venture successfully.

4. To conduct various training programmes (either independent or in-collaboration with other organization connected with rural technology, rural development and entrepreneurship development.

5. To provide counseling and consultancy guidance with all possible help to the youth in the field of Self Employment and Rural Development.

2. Baroda Grameen Paramarsh Kendras

The bank has established -52- Baroda Grameen Paramarsh Kendras as on 31-05-2012 where following activities are carried out:

Financial Education and Financial Inclusion Information sharing and problem solving on technical issues Credit counseling Synergy and liaison with other organisations and development activities

3. Financial Literacy and Credit Counseling Centres (FLCC):

Bank has opened Financial Literacy and Credit Counseling Centres as a CSR initiative. The centre opened is christened as ―SAARTHEE‖ amply indicating its basic objective of steering those under financial distress and educating to others to avoid financial mess. Presently Bank has set-up 45 FLCCs

Bank‟s HR Initiatives……..

Focused hiring efforts on a sustained basis year on year, to cater to superannuation, sustained business growth and rapid Branch expansion


Massive skill up-gradation and several structured long induction programmes were carried out for the new joinees during FY13 to develop various Banking skills, esp. in the specialised areas of Credit, Forex, Treasury, Soft Skills, etc.

Project Udaan:

A Large scale, comprehensive Leadership Development training programmes conducted

Project Sparsh:

A focused HR transformation project – ‗SPARSH‖ has been initiated by the Bank - to revamp its existing HR processes, structures and policies. Various initiatives like Talent management, Succession planning, Creating a Scientific Staffing Model & Manpower Planning,, Development and Capability Building, Performance Management, etc. have been undertaken during FY12.

Baroda Manipal School of Banking:

A school is opened as an innovative and new channel of resourcing of trained manpower in the Bank. Around 180 students are being inducted into this school every quarter for a focused grooming and a one-year full-time PG course in Banking is tailored to the Bank‘s specific requirements.

Financial Figures as on Dec. 2012

Operating Profit up 4.7% (y-o-y) to Rs 6,892 crore Net Profit dn 1.1% (y-o-y) to Rs 3,452 crore - Net Interest Income up 13.1% (y-o-y) to Rs 8,501 crore Total Business up 17.1% (y-o-y) to Rs 7,14,051 crore by end-Dec2012 Total Advances up 14.8% (y-o-y) to Rs 2,99,318 crore by end-Dec, 2012 Total Deposits up 18.8% (y-o-y) to Rs 4,14,733 crore by end-Dec, 2012 Net NPAs (%) at 1.12% as on 31st Dec, 2012


“AWARDS AND ACCOLADES FOR THE BANK IN FY‟12”

Best Public Sector Bank (PSB) by CNBC-TV18 & MCX

Golden Peacock Award for Excellence in Corporate Governance by Institute of Directors &

World Forum for Corporate Governance received in London

Dainik Bhaskar India Pride Award for 2011

Most Efficient Bank in Kenya

Best Initiatives in Inclusive Banking – FIBC Banking Award

Dun & Bradstreet‘s Leading PSB in ―Global Business Development Category‖

National Award for Performance under SME Business

Award for Best Utilisation of Intellectual Resources

Best Growing Large Bank by Business World-PWC

Business Leadership Award by NDTV- Best PSB in 2011

Award for Excellence in Financial Reporting by ICAI in PSB category

Fastest Growing Large Bank by Business World-PWC

UTV-Bloomberg Financial Leadership Award

FM Stars Industry Brand Leadership Award

BOB‘s Brand Ranking has increased by 47 notches in a year‘s time in Top 500 Banking

Brands by The Banker, London

Best Bank Award-2012

Awards for the Bank‟s CEO (CMD)

Outstanding Financial Professional-2010 by CNBC-TV18 & MCX

Best Banker Award (T. A. Pai Memorial Award) by Karnataka State Open University

Lifetime Achievement Award by Dainik Bhaskar India Pride Awards

Banker of the Year by Business World-PW


TEST YOUR UNDERSTANDING

1. Bank of Baroda established on

a) 20 july 1910

b) 15 aug 1908

c) 20 july1908

d) 26 jan 1910

e) 10 aug 1912

2. How many banks have been merged in BoB till date

a) 7

b) 8

c) 9

d) 10

e) 11

3. No of Regional and Zonal offices are

a) 56 &10

b) 50 & 12

c) 60 & 12

d) 56 & 13

e) 60 & 15

4. No of SME and Retail Loan factories are

a) 40 & 30

b) 51 & 37

c) 46 & 37

d) 51 & 40

e) None of these

5. Business Process Re-engineering does not include

a) Improvement of Branch productivity

b) Best in class service

c) Redesign of Back and Front office

d) Reducing operating cost

e) Increasing no of branches

6. Which of the following is not Back Office

a) RBO

b) CSO

c) Contact Centre

d) Data centre

e) ATM

7. Contact Centres are situated at


a) Gandhinagar & Baroda

b) Baroda & Ahemdabad

c) Baroda & Lucknow

d) Lucknow & Jamshedpur

e) Mumbai & Banglore

8. Which of the following work is not performed by Contact Centre

a) Reply routine queries

b) activate password

c) Stop payment of cheque

d) Hotlist Debitcards

e) Printing of passbook

9. Where apex training institute Staff College situated

a) Bareilly

b) Mumbai

c) Gandhinagar

d) Kolkota

e) Ahemedabad

10. In Baroda Next Branches which of the following has maximum outbound sales activity

a) UT

b) Host

c) CSR

d) RLM

e) Branch Head

Answers:

Q 1 2 3 4 5 6 7 8 9 10

A C D D D E E C E E D


“VARIOUS LAWS RELATING TO BANKERS”

Quick Bites The Banking Regulation Act. The Reserve Bank of India Act. The Negotiable Instrument Act. The Indian Contract Act. The Indian Partnership Act. The Companies Act. The SARFAESI Act

Background:

Bank regulations are a form of government regulation which subject banks to certain

requirements, restrictions and guidelines. This regulatory structure creates transparency

between banking institutions and the individuals and corporations with whom they conduct

business, among other things.

Given the interconnectedness of the banking industry and the reliance that the national

(and global) economy hold on banks, it is important for regulatory agencies to maintain

control over the standardized practices of these institutions. The common objectives of

Laws are:

1. Prudential—to reduce the level of risk to which bank creditors are exposed (i.e. to

protect depositors).

2. Systemic risk reduction—to reduce the risk of disruption resulting from adverse

trading conditions for banks causing multiple or major bank failures.

3. Avoid misuse of banks—to reduce the risk of banks being used for criminal

purposes, e.g. laundering the proceeds of crime.

4. To protect banking confidentiality.

5. Credit allocation—to direct credit to favored sectors.

6. It may also include rules about treating customers fairly and having corporate social

responsibility.

The Banking Regulation Act, 1949

Banking in India is mainly governed by Banking Regulation Act, 1949. The Reserve Bank of India and the Government of India exercise control over banks from the opening of the Branches to their winding up by virtue of the powers conferred under this statute.

It was enacted to consolidate and amend the laws relating to banking and to provide for suitable framework for regulating the Banking Companies and covers co-operative banks as well. The Act does not apply to primary agriculture societies, and cooperative land development banks. The provisions of the act are applicable to banking companies in addition to other laws, which are applicable to such companies. The Act regulates entry in to banking business by licensing as provided in section 22 thereof. It also put restrictions on share holding, directorship, voting powers and other aspects of banking companies. There are several provisions in the act regulating the business of banking such as restrictions on loans and advances, provisions relating to rate

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of interest, requirements as to cash reserve ratio, provisions regarding audit and inspection and submission of balance sheet and accounts. The act also provides for control over the management of banking companies.

Statutory Liquidity Ratio

According to Section 24 (2-a) of the Banking Regulation Act, every banking company in India whether scheduled or non scheduled, is required to maintain in India in Cash, Gold or unencumbered, approved securities an amount of which is not less than 24% of the total of its demand and time liabilities in India. This is known as Statutory Liquidity Ratio (SLR).

The Reserve Bank is empowered to increase this ratio. For calculating the SLR, the following liquid assets are taken into account.

Cash in hand in India. Balances in current account with the State Bank of India and its associates. Balance maintained with the RBI in excess of the minimum CRR requirements. Investments in Government Securities, Treasury Bills and other approved securities

in India.

However, the approved securities must be valued at a price not exceeding the current market price. At present SLR is 23%

Reserve Bank of India Act, 1934

The Act was enacted on 6th March, 1934 to constitute the Reserve Bank of India and has been amended from time to time to meet the demands of changing times. It has the following objectives:

To regulate the issue of Bank Notes. For keeping reserves for securing monitory stability in India and, To operate the currency and credit system of the country to its advantage.

The Act deals with the following:

Incorporation, capital, management and business of the bank. Central banking functions like Issue of Bank Notes, monitory control, acting as

banker to the Government and Banks, lender of last resort etc. Collection and furnishing credit information. Acceptance of deposits by Non Banking Financial Institution (NBFI). Handling Reserve Fund, Credit funds, publication of bank rate, audit and accounts

etc. Penalties for violation of the provision of the act or direction issued there under.

Important Provisions

Scheduled Bank

According to Section 2(e), Scheduled Bank means a bank whose name is written in the 2nd schedule of RBI Act, 1934 and which satisfies the conditions laid down in Section 42(6), - Paid up capital and reserves of not less than Rs. 5 lac, satisfaction of RBI that the affairs will not be conducted by the bank in a way to jeopardize the interests of the depositor. It


may be a State Co-operative Bank, a company defined in Companies Act, 1956, an institution notified by Central Government for the purpose and a corporation or a company incorporated by or under any law in force, in any place outside India. Any bank that is not included in the 2nd Schedule of RBI is called Non-Scheduled Bank.

“Bank Rate Policy”

Section 49 defines it as ―The Standard Rate at which it (the bank) is prepared to buy or rediscount bills of exchange or other commercial paper eligible for purchase under this Act‖.

By varying the bank rate, the RBI can to a certain extent regulate the commercial bank credit and the general credit situation of the country. The impact of this tool has not been very great because of the fact that the RBI does not have a mechanism to control the unorganized sector. Further the money market in our financial system is not fully developed, so that the Bank rate policy will have if desired impact on the financial system. The present bank rate is 8.75 %

Cash Reserve Ratio

Section 42 defines the Cash reserves of scheduled bank to be kept with RBI. Every scheduled bank has to maintain with RBI an average daily balance the amount of which shall not be less than 3% of the total demand and time liabilities and shall not exceed 15%. Presently the CRR is 4.00%

Inspection of Banks:

The most significant supervisory function exercised by the RBI is the inspection of Banks. The basic objectives of inspection of banks are to safeguard the interests of the depositors and to build up and maintain a sound banking system in conformity with the banking laws and regulations as well as the country‘s socio-economic objectives. Accordingly, inspections serve as a tool for overall appraisal of the financial and managerial systems and performance of the banks, toning up of their procedures and methods of operation and prevention of serious irregularities.

The RBI‘s powers to conduct inspections are contained in various provisions of the Banking Regulation Act, the most important being Section 35. This apart, inspections may be necessary under the provisions of Section 23, 37, 38, 44, 44A, 44B and 45 of the Act. Audit of Annual Accounts of Banks:

Banks have to close their books of accounts every year as at March 31st and prepare a Balance Sheet and Profit and Loss account as prescribed in the III schedule of the Banking Regulation Act. These annual accounts are required to be audited by auditors appointed by the Bank each year with the prior approval of the Reserve Bank of India, as per Section 30(1A) of the Banking Regulation Act, in respect of private sector banks.

Section 10(1) of the Banking Companies [Acquisition and Transfer of Undertakings] Act, 1970 / 1980 provides for audit of annual accounts of banks in the case of nationalized banks.

Negotiable Instrument Act, 1881

The NI Act, 1881 lays down the laws relating to payment of the customers cheques by a


banker and also protection available to a banker. The relationship between banker and customer being debtor – creditor relationship, the bank is bound to pay the cheques drawn by his customers. This duty on the part of Bank to honour its customer‘s mandate is laid down in section 31 of the NI Act. Section 10, 85, 89 and 128 of the NI Act grants protection to a paying banker.

Important sections of the Act are as under:

Various Sections under Negotiable Instrument Act, 1881

SEC. TERM MEANING

3 Banker Banker includes any person acting as a Banker and any post office savings bank.

4 Promissory Note

A Promissory Note is an instrument in writing, containing an unconditional undertaking signed by maker, to pay a certain sum of money only to or to the order of a certain person or to the bearer of the instrument.

5 Bill of Exchange

A Bill of Exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay certain sum of money only to or to the order of a certain person or to the bearer of the instrument. Here, the promise to pay is not conditional.

6 Cheque A cheque is a Bill of Exchange drawn on a specified banker and not expressed to be payable otherwise then on demand and it includes the electronic Image of a truncated cheque & a cheque in the electronic form.

7 Drawee Payee

The maker of a Bill of Exchange or Cheque is called the drawer, the person thereby directed to pay is called the Drawee.

The person named in the instrument, to whom or to whose order the money is, by the instrument directed to be paid, is called the payee.

8 Holder The Holder of a promissory note, bill of exchange or cheque means any person entitled in his own name to the possession thereof and to receive or recover the amount due thereon from the parties thereto. Where the bill of exchange or cheque is lost or destroyed, its holder is the person so entitled at the time of such loss or destruction.

9 Holder In Due course

Holder in due course means any person who for consideration became the possessor of the promissory note, bill of exchange or cheque ,if payable to bearer, or the payee or endorsee thereof, if, before the amount mentioned in it became payable and without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title.

10 Payment in Due course

Payment in due course, means payment in accordance with the apparent tenor of the instrument in good faith and without negligence to any person in possession thereof under circumstances which do not afford a reasonable ground for


believing that he is not entitled to receive payment of the amount therein mentioned.

11 Inland Instrument

A Promissory Note, Bill of Exchange or Cheque drawn or made in, and made payable in or drawn upon any person resident in (India) shall be deemed to be an Inland Instrument.

13 Negotiable Instrument

A NI means Promissory Note, Bill of Exchange or Cheque payable either to order or to the bearer.

14 Negotiation When a Promissory note, bill of exchange or cheque is transferred to any person, so as to constitute the person the holder thereof, the instrument is said to be negotiated.

15 Endorsement When the maker or the holder of the negotiable instrument signs the same, otherwise than as such maker, for the purpose of the negotiation, on the back or the face thereof or on a slip of paper annexed thereto or so signs for the same purpose a stamped paper intended to be completed as a negotiable instrument, he is said to endorse the same is called the Endorser.

16 Endorsement in Blank and Full

If the endorser signs his/her name only, the endorsement is said to be ―in blank‖, and if he adds direction to pay, the amount mentioned in the instrument, or to the order of a specified person the endorsement is said to be in full and the person so specified is called the endorsee of the instrument.

20 Inchoate stamped instrument

Where one person signs and delivers to another person a paper stamped in accordance with the law relating to negotiable instrument then in force in India and either ,wholly blank or having written thereon an incomplete negotiable instrument, he thereby gives prima facie authority to the holder thereof to make or complete, as the case may be , upon it a negotiable instrument, for any amount specified therein and not exceeding the amount covered by the stamp. The person so signing shall be liable upon such instrument, in the capacity in which he signed the same, to any holder in due course for such amount.

21 ―At Sight‖ / ―On presentment‖/ ―After Sight‖

In a promissory note or bill of exchange the expressions ―at sight‖ and ―on presentment‖ means ―on demand‖. The expression ―after sight‖ means, in a promissory note, after presentment for sight and in a bill of exchange after acceptance or noting for non acceptance, or protest for non acceptance .

22 Maturity The maturity of a promissory note or bill of exchange is the due date at which it falls due. Every promissory note or bill of exchange which is not expressed to be payable on demand, at sight or on presentment is at maturity on the third day after the day on which it is expressed to be payable.

25 When maturity is a holiday

When the day on which a promissory note or bill of exchange is at maturity, is a public holiday, the instrument shall be deemed to be due on the next preceding business day.

26 Minor A minor may draw, endorse, deliver and negotiate such instruments so as to bind all parties except himself.

30 Liability of The drawer of a bill of exchange or cheque is bound in case of


Drawer dishonor by the drawee or acceptor thereof, to compensate the holder, provided due notice of dishonor has been given to or received by the drawer as hereinafter provided.

46 Delivery The making, acceptance or endorsement of a promissory note, bill of exchange or cheque is complete by delivery, actual or constructive.

47 Negotiation by delivery

A promissory note, bill of exchange, or cheque, payable to bearer is negotiable by delivery thereof.

48 Negotiation by Endorsement

A promissory note, bill of exchange, or cheque, payable to order is negotiable by the holder by endorsement and delivery thereof.

49 Conversion of Endorsement in Blank in to full

The holder of a negotiable instrument, endorsed in blank may without signing his own name by writing above the endorser‘s signature a direction to any other person as endorsee, convert the endorsement in blank into an endorsement in full.

77 Liability of banker for negligently dealing with bill presented for payment.

When a bill of exchange, accepted payable at a specified bank, has been duly presented there for payment and dishonored, if the banker so negligently or improperly keeps, deals with or delivers back such bill as to cause loss to the holder, he must compensate the holder for such loss.

85 Cheque payable to order

Where a cheque is payable to order purports to be endorsed by or on behalf of the payee, the Drawee is discharged by payment in due course.

87 Effect of Material Alteration

Any material alteration of a negotiable instrument renders the same void as against any one whom is a party thereto at the time of making such alteration and does not consent thereto, unless it was made in order to carry out the common intention of the original parties.

115 Drawee in case of need

Where a Drawee in case of need is named in a bill of exchange or in any endorsement thereon, the bill is not dishonored until is has been dishonored by such Drawee.

123 Cheque crossed generally

Where a cheque bears across its face an addition to the words ―and company‖ or any abbreviation thereof, between two parallel transverse line, or of two parallel transverse lines simply, either with or without the words ―not negotiable‖, that addition shall be deemed a crossing , and the cheques shall be deemed to be crossed generally.

124 Cheque crossed specially

Where a cheque bears across its face an addition of the name of a banker either with or without the words ―not negotiable‖, that addition shall be deemed a crossing, and the cheque shall be deemed to be crossed specially and to be crossed to that banker.

128 Payment in due course of crossed cheque

Where the banker on whom a crossed cheque is drawn has paid the same in due course, the banker paying the cheque, and (in case such cheque has come to the hands of the payee) the drawer thereof, shall respectively be entitled to the same rights, and be placed in the same position in all respects, as they would respectively be entitled to and placed in if the amount of the cheque


had been paid to and received by the true owner thereof.

129

Payment of crossed cheque out of due course

Any banker paying a cheque crossed generally otherwise than to a banker, or a cheque crossed specially otherwise than to the banker to whom the same is crossed, or his agent for collection, being a banker, shall be liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid.

130 Not Negotiable

A person taking a cheque crossed generally or specially, bearing in either case the words ―not negotiable‖, shall not have and shall not be capable of giving, a better title to the cheque than that which the person from whom he took it had.

131 Non liability of banker receiving payment of cheque

A banker who has in good faith and without negligence, received payment for a customer of a cheque crossed generally or specially to him-self shall not, in case the title to the cheque proves defective, incur any liability to the true owner of the cheque by reason only of having received such payment.

138 Dishonor of Cheque for insufficiency etc. of funds in the account.

Where any cheque drawn by a person on account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honor the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for a term which may be extended up to two years, or with fine which may extend up to twice the amount of the cheque, or with both.

Section 139 to 147

Recent amendments in Negotiable Instruments (amendment and Misc. Provisions) Act 2002.

Following are the recent amendments:- 1. Definition of a ‗cheque‘ widened to include electronic image of

a truncated cheque and a cheque in electronic forms. 2. Right of the banker who received payment on electronic image

of a truncated cheque to retain the truncated cheques. 3. Certificate of text of print out of electronic image of truncated

cheque by paying Banker as proof of payment. 4. Doubling of the imprisonment term from one year to two

years. 5. Doubling of penalty for the offence, i.e. up to twice the

amount of the instrument. 6. Doubling of the period of time to issue demand notice to

drawer from 15 to 30 days. 7. Immunity from prosecution for nominee directors, who are

nominated by virtue of holding any office or employment in Central Government or State Government or a financial corporation owned or controlled by the Central Government or State Government.

8. Compounding of offence under the N.I.Act. Empowering the magistrate to condone delay in filing


complaint. Bank‘s slip or Memo having Bank‘s Official mark denoting that the cheque has been dishonoured shall be presumed to be the fact of dishonour.

CHEQUE TRUNCATION

WHAT IS CHEQUE TRUNCATION

Truncation is the process of stopping the flow of the physical cheque issued by a drawer to the drawee branch. The physical instrument will be truncated at some point en-route to the drawee branch and an electronic image of the cheque would be sent to the drawee branch along with the relevant information like the MICR fields, date of presentation, presenting banks etc. The images captured at the presenting bank level would be transmitted to the Clearing House and then to the drawee branches with digital signatures of the presenting bank. Thus each image would carry the digital signature, apart from the physical endorsement of the presenting bank, in a prescribed manner.

Thus the benefits to customers of banks could be summarized as:

(a) Faster clearing cycle; (b) Better reconciliation/verification process (c) Better Customer Service - Enhanced Customer Window (d) T+0 for Local Clearing and T + 1 for inter-city clearing. (e) Elimination of Float - Incentive to shift to Credit Push payments. (f) The jurisdiction of Clearing House can be extended to the entire country - No

Geographical Dependence (g) Operational Efficiency will benefit the bottom lines of banks - Local

Clearing activity is a high cost no revenue activity. (h) Minimises Transaction Costs. (i) Reduces operational risk by securing the transmission route. The physical instruments are required to be stored for a statutory period. It would be obligatory for presenting bank to warehouse the physical instruments for that statutory period. In case a customer desires to get a paper instrument back, the instrument can be sourced from the presenting bank through the drawee bank.

Indian Contract Act, 1872

Banking involves interaction between a banker and customer. A customer of a bank may be a depositor, borrower or any other person merely utilizing one of the various services provided by the banker. The interaction of a bank with its customer creates certain obligations and gives certain rights to both the bank and the customer.

―All Agreements are contracts, if they are made by parties competent to contract, for a lawful consideration and with a lawful object, and are not expressly declared to be void.‖

All Banking transactions are therefore, separate contracts and the knowledge of Indian Contract Act is essential for each Banker.


Section124. "Contract of indemnity" defined-

―A contract by which one party promises to save the other from loss caused to him by the contract of the promisor himself, or by the conduct of any other person, is called a "contract of indemnity".

Section 126. "Contract of guarantee", "surety", "principal debtor" and "creditor" - A "contract of guarantee" is a contract to perform the promise, or discharge the liability, of a third person in case of his default. The person who gives the guarantee is called the "surety", the person in respect of whose default the guarantee is given is called the "principal debtor", and the person to whom the guarantee is given is called the "creditor". A guarantee may be either oral or written. Section 148. ‗Bailment‘, ‗bailor‘ and ‗bailee‘ defined.— A ‗bailment‘ is the delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them. The person delivering the goods is called the ‗bailor‘. The person to whom they are delivered is called the ‗bailee‘.

Section 172. "Pledge", "Pawnor", and "Pawnee" defined - The bailment of goods as security for payment of a debt or performance of a promise is called "pledge". The bailor is in this case called "pawnor". The bailee is called "pawnee".

Section 182. "Agent" and "principal" defined - An "agent" is a person employed to do any act for another, or to represent another in dealing with third persons. The person for whom such act is done, or who is so represented, is called the "principal".

Indian Partnership Act, 1932 Partnership is the relationship between persons who have agreed to share the profit of a business carried out by all or any of them, acting for all. The relationship between partners is governed by Partnership Deed. The act provides for registration of partnership and it is necessary that a banker dealing with partnership firm should verify as to whether the firm is registered or not. This would help him to know all the names of the partners and their relationship. The act of the partner shall be binding on the firm if done. (a) In the usual business of the partnership. (b) In the usual way of business. (c) As a partner, i.e. on behalf of the firm and not solely on his own behalf.

Limited Liability Partnership Act, 2008

The Limited Liability Partnership (LLP) is viewed as an alternative corporate business vehicle that provides the benefits of limited liability but allows its members the flexibility of organizing their internal structure as a partnership based on a mutually arrived agreement. The LLP form would enable entrepreneurs, professionals and enterprises providing services of any kind or engaged in scientific and technical disciplines, to form commercially efficient vehicles suited to their requirements. Owing to flexibility in its structure and operation, the LLP would also be a suitable vehicle for small enterprises and for investment by venture capital keeping in mind the need of the day, the Parliament enacted the Limited Liability Partnership Act, 2008 which received the assent of the


President on 7th January,2009.

Indian Companies Act, 1956

In India, companies are governed by Companies Act, 1956. All the companies are required to be registered under Companies Act, 1956. A company is a juristic person created by law, having a perpetual succession and common seal distinct from its members. Section 11 of the Companies Act provides that an Association or Partnership consisting of more than 10 in the case of Banking Business and more than 20 in the case of other business shall be registered under the companies act. If not registered, the said association or partnership will be illegal.

The business and the objects of a company and the rules and regulations governing its management is known by two important documents called Memorandum of Association and Article of Association.

Securitisation and Reconstruction of Financial Asset and Enforcement of Security Interest Act, 2002.

Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 is an effective tool in the hands of the bank to enforce the security interest and recover the dues thereby reducing NPAs/PWOs.

The Act deals with three aspects: 1. Enforcement of Security Interest by secured creditor (Banks/FIs]. 2. Transfer of non- performing assets to asset Reconstruction Company, which will

then dispose of those assets and realise the proceeds. 3. To provide a legal framework for securitization of assets.

Enforcement of Security Interest

Before enforcing security interest, branches should ensure that the borrowal accounts comply with the following criteria –

a) The contractual dues in the account should be more than Rs.1 lac. b) The default must have occurred i.e. the account should have become NPA as per

RBI norms. c) The security charged to the Bank must be specific, clear and available to the Bank. It

must be duly and effectively charged to the Bank and therefore, enforceable if the borrower fails to pay in response to the Notice.

d) The security documents in the advance account should be in full force on the date of serving the 60 days notice. As an abundant caution, it should be ensured that they will be in force even at the time the action that will follow for enforcement of security i.e. at least up to one year from the date of serving the notice.

e) The security documents should be duly filled in. f) Either our Bank must be the sole banker to the borrower i.e. 100% lending is done

by us or in case of consortium lending consent of secured lenders representing not less than 75% of the amount outstanding in value is obtained.

g) In case of multiple Banking, if the security is exclusively charged, the bank can proceed as though it is the sole banker.

h) Even in B.I.F.R. referred cases and suit filed cases, action can be taken. i) An action under SARFAESI Act also facilitates abatement of reference from BIFR.


j) Since limitation Act applies to action under SARFAESI, care should be taken that the action is within limitation time.

Other Important Acts

Transfer of Property Act, Information Technology Act, 2000 Code of Civil Procedure Act, 1908 Recovery of Debts due to Banks and Financial Institutions Act, 1993 (DRT) Stamps Act Right to Information Act Foreign Exchange Management, Act, 1999 Bankers Book Evidence Act, 1891


Test your Understanding:

1. The Bank is mainly governed by ………………………….Act. a) The Indian Contract Act. b) The Banking Regulation Act c) The Reserve Bank of India Act. d) The Negotiable Instrument Act. e) The Companies act

2. SARFAESI Act, 2002 is an effective tool in the hands of the bank to enforce the

security interest and recover the dues thereby reducing. a) Potential NPA b) Bad debts c) Long overdue Bills d) Overdue advances e) NPAs/PWOs

3. A company is a juristic person created by law, having a ……….. succession

a) Regular b) Continuous c) Perpetual d) Permanent e) Pre-defined

4. A company must have a ………….seal distinct from its members a) Common b) Distinct c) Specific d) Approved e) Rubber

5. The Limited Liability …………. is viewed as an alternative corporate business vehicle that provides the benefits of limited liability. a) Proprietorship b) Partnership c) Company d) Firm e) Properties

6. Which of the following is/are not an objectives of RBI

a) To regulate the issue of Bank Notes. b) To Regulate NBFCs c) For keeping reserves for securing monitory stability in India and, d) To operate the currency and credit system of the country to its advantage. e) Investments in Government Securities, Treasury Bills and other approved

securities in India


7. A ………………is an instrument in writing, containing an unconditional undertaking signed by maker, to pay a certain sum of money only to or to the order of a certain person or to the bearer of the instrument a) Promissory Note b) Bills of Exchange c) Cheque d) Hundee e) Bank drafts

8. A NI means Promissory Note, Bill of Exchange or Cheque payable either to order or

to the ………. a) Holder b) Holder in due course c) Bearer d) Owner e) Agent

9. The making, acceptance or endorsement of a promissory note, bill of exchange or

cheque is complete by …………, actual or constructive. a) Endorsement b) Crossing c) Material alteration d) Delivery e) Stamping

10. A contract by which one party promises to save the other from loss caused to him by

the contract of the promisor himself, or by the conduct of any other person, is called a "contract of …………. a) Guarantee b) Bailment c) Pledge d) Indemnity e) Agency

Answers:

Q 1 2 3 4 5 6 7 8 9 10

A B E C A B B&E A C D D


“Banker Customer Relationship”

Quick Bites Definition of Banking, Banker & Customer. Various type of relationship between banker & customer Various rights available to the banker like, Lien, set-off and appropriation defined. Difference between Garnishee order and Income Tax attachment order explained. Various types of customers covered precisely.

Background:

The relationship between the banker and customer is very important. Both serve the society to grow and the economy to expand. Before we discuss the relationship between the banker and the customer, it seems necessary that the two terms ‗banker‘ and ‗customer‘ are made clear.

The term ―Banking‖ has been defined under the Banking Regulation Act, 1949. According to section 5(b) of the Act, „Banking‟ means “accepting for the purpose of lending or investment of deposits of money received from the public, repayable on demand or otherwise and withdrawable by cheque, draft, order or otherwise”. The person who is disposing the assignments of banking is called „BANKER‟.

Thus the essential functions of the bank as mentioned in RBI Act, section 5(b) and Banking Regulation Act, 1949 section 6, are as listed below: Acceptance of deposit of money for the purpose of lending or investments. Discounting of Bills Collection of Cheque and Bills Remittances Safe Custody of articles Hiring of Safe Deposit Lockers Conducting foreign exchange transactions Conducting Govt. Transactions. Issuing Letters of Credit and Guarantees

But now, as new institutions have diversified their businesses and entered into banking, like wise banks were diversified to other line of businesses directly or, otherwise, so, few more functions have been added over the years like Selling of Gold Coins, Credit Card business, third party products selling etc.

There is no statutory definition of ‗Customer‘. A person/ company/entity who have an account with a bank are a customer. There is no unanimity as regards to the time period of the dealings. A casual transaction like encashment of a cheque does not entail a person to be customer. The duration of association of the customer with the bank is of no essence. A customer is one who has an account with the bank and to whom the banks undertakes to extend business of banking.


Duties and Rights of a Banker

Duty to maintain the secrecy about customer‘s account But, under the following circumstances Bank is under obligation to disclose the customer information (a) Under compulsion of law (b) To protect national Interest (c) In the interest of the Bank (d) With the implied consent of the customer (e) As per banking practices (f) Information demanded by the Guarantor

Duty to honor the cheque if the balance in the account, permit debit of the cheque and cheque is properly drawn

Duty to issue pass-book, statement etc. Duty to collect the cheques, Bills etc.

Followings are the primary rights of the banker:

Right of General Lien Right of set-off Right of appropriation Right to act as per the mandate given by the customers.

Lien

It is a right of the creditor to retain the possession of the goods and securities owned by the debtor until the debt due by the customer is paid. The banker‘s lien is an implied pledge. A banker acquires the right to sell the goods, which came into possession in the ordinary course of banking business. This means that any specific transactions other than as defined under Banking are not subject to general lien. eg, safe custody transactions, Locker transactions, money deposited for some specific purpose etc. Section 171 of the Indian Contract Act, 1872 gives a right of general lien to the banker.

Set-off

Right of set-off is the right of a banker to adjust a debit balance in a customer‘s account, with any balance outstanding to his credit in the books of the banks. In other words, the banker has a right to mutually adjust the two accounts of the same customer with certain amount, one in debit and another in credit, which is called right of set-off. The set-off is applicable to debts due and payable on the date of set-off. The account must be in the same name and same capacity.

Appropriation

The customer, who deposits the amount, has a right to clarify the purpose and account against which the credit is to be given by the banker. It means it is the duty of the customer to specify the nature of the transactions. If he fails to mention the purpose, then banker has a right to adjust the credit against the any debit/ dues. This is called the right of appropriation.


Banker customer relationship

The banker is rendering various types of services to the customers and non-customers also. During the course of such banking transactions various relationships arise. Various relationships are as under:

Transactions Relationship

Bank Customer Deposit Account with bank Debtors Creditors

Loan from the Bank Creditors Debtors

Locker Lessor Lessee

Safe custody of Articles Bailee Bailor

Collection of Bills/ Cheques Agent Principal

Purchase of DD/ MT/ TT Debtors Creditors

Payment of Draft Trustee Beneficiery

Pledge of goods Pledgee Pledger

Mortgage Mortgagee Mortgager

Standing instruction Agent Principal

Article left by the bank Trustee Beneficiery

Hypothecation of goods Hypothecatee Hypothecator

Assignment of securities Assignee Assignor

Indemnity indemnifier indemnified

Relationship Creditor-Debtor: Relationship between the customer having a deposit account, depositor is the creditor and the banker is the debtor.

Relationship Debtor-Creditor: When the customer avails a loan or an advance, then his relationship with the banker undergoes a change to what it is, when he is a deposit holder. Since the funds are lent to the customer, he becomes the borrower and the banker becomes the lender. The relation is the debtor- creditor relation, the customer being a debtor and the banker a creditor.

Relationship Beneficiary-Trustee: If a customer keeps certain valuables or securities with the bank for safe-keeping or deposits a certain amount of money for a specific purpose, the banker, besides becoming a bailee, is also a trustee. The money or the securities so kept are not at the disposal of the bank. The banker cannot utilize those moneys or securities as he desires since the money does not belong to him.

Relationship Principal-Agent: Banks provide ancillary services such as collection of cheques, bills etc. They also undertake to pay regularly the electricity bills, phone bills etc. The relationship arising out of these ancillary services is of principal-agent between the customer and the bank. The proceeds of the cheques sent for collection,which are in transit, not created to the customer account are not the moneys of the banker till such time as they are credited into the customer account.

Relationship Lessee-Lessor: The banks provide safe deposit lockers to the customers who hire them on lease basis. The relationship therefore, is that of lessee and lessor. In certain banks, this relationship is termed as licensee and licensor. The bank leases out the


space for the use of clients. The bank is not responsible for any loss that arises to the lessee in this form of transaction except due to negligence of that bank.

Relationship Indemnifier- Indemnified: The customer is indemnifier and the bank is indemnified. A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself or the conduct of any other person is called a contract of indemnity – section 124 ( Indian Contract Act, 1872).

In the case of banking, this relationship happens in transactions of issue of duplicate demand draft, fixed deposit receipt etc. The underlying point in these cases is that either party will compensate the other of any loss arising from the wrong/excess payment.

Relationship Bailer and Bailment: A bailment is the delivery of goods in trust. A bank may accept the valuables of his customer such as jewellary, documents, securities for safe custody. In such a case the customer is the Bailer and the bank is bailee. As per section 148 of Indian Contract Act 1872, the delivery of goods from one person to the other for some purpose upon the contract that the goods will be returned when the purpose is accomplished.

Pledger and Pledgee: When a customer Pledge goods and documents as security for an

advance he then become Pledger and the bank becomes the pledgee. The pledged goods

are to be returned intact to the Pledger after the debt is repaid by him.

Mortgager and Mortgagee: Mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan. When a customer pledges a specific immovable property with the bank as security for advance, the customer becomes mortgager and banker is the mortgage.

Garnishee order and Income Tax Attachment order

GARNISHEE ORDER I.T. ATTACHMENT ORDER

An order issued by a court at the request of judgement creditor attaching the fund belonging to the judgement debtor.

Order issued by competent authority to attach the balance lying in the account of customer/defaulter of the order issuing authority.

The credit balance available at the time of order is earmarked/attached. No subsequent credit is attached

The credit balance in the account as well as future credit in the account are also attached.

Before remitting money, bank can exercise their right of set-off.

Once the order is acted upon, bank can not exercise right of set off.

The fund which is lying with the bank as a debtor of the customer is to be attached only.

It is attached to present fund and any fund which are to be credited to the customers account.

If the order in single name, no joint account balance can be attached.

It is applicable proportionately to joint account balance also.

Fund lying in the account of deceased customer is not attachable

It can be attached.


Clayton‟s Rule:

This rule is applicable mainly in case of overdraft & cash-credit account of other than sole proprietor firm and as per this rule the credit entry will set-off the debit entry, in chronological order.

Termination of Banker-Customer relationship:

The relationship seizes once If customer closes the accounts If customer dies, If customer becomes insane or If customer becomes insolvent. Banker may close the a/c by serving notice to A/c holder

Types of Customers

A bank opens accounts for various types of its prospective/existing customers like individuals, partnership firm, trusts, companies, etc. While opening the accounts, the banker has to keep in mind the various legal aspects involved in opening and maintenance of these accounts. Normally banks have to deal with the following types of customers:

Individuals:

1. The account should be opened with cash only and not with cheque, drafts. This is to protect the bank‘s interest under section 131 of the N. I. Act.

2. ‗KYC‘ Norms to be followed 3. The account can be opened in the single name or joint name. Followings are the various

types of operation instructions for the joint accounts of the individuals: a. Jointly, b. Either or Survivor, c. Former or survivor, d. All of them jointly or Survivors or Survivor,

Minor:

According to Section 3 of Indian Majority Act, a person attains majority at the age of 18, except in case where a guardian is appointed by a court, where the age of majority is 21. As per Indian Contract Act, a minor is not capable to enter into the contract and any contract with the minor is void. Following points are to be kept in mind: A minor of 10 years can open SB account and a minor of 14 years can open Current

account in his name. However, there is a specific ceiling to maintain a maximum balance in the account/s.

Operations in the account – by minor or by natural guardian Legal guardian cannot open a joint account No overdraft is created in the account Date of majority to be recorded in the account No joint account of two or more MINORS TO BE OPENED.

Illiterate Persons:

Illiterate persons are competent to enter into contract so that they can open and maintain


bank accounts. However, following precautions are to be taken while opening and maintaining such accounts: No cheque book should be issued No current account should be opened Joint account of two illiterates (close relatives can be opened) – operational instructions

should be jointly or survivor and not either or survivor Joint account of illiterate with literate close relative can be opened but no cheque

should be issued.

Blind Persons:

Blind persons are competent to enter into contract. They can open and maintain any type of bank accounts. However, following precautions are to be taken while opening and maintaining such accounts: Various risks in operations of the account should be explained to the account holder Joint account with close relative can be opened Cash receipts and payments should be made in presence of witness preferably bank

customer Account opening form etc. should be stamped ―blind person‖ For withdrawal of the amount he/ she should come personally

Proprietorship Firms:

A sole proprietorship is the oldest and the most common form of business. It is a one-man organisation where a single individual owns, manages and controls the business. Its main features are :- Ease of formation is its most important feature because it is not required to go through

elaborate legal formalities. No agreement is to be made and registration of the firm is also not essential. However, the owner may be required to obtain a license specific to the line of business from the local administration.

The capital required by the organisation is supplied wholly by the owner himself and he depends largely on his own savings and profits of his business.

Owner has a complete control over all the aspects of his business and it is he who takes all the decisions though he may engage the services of a few others to carry out the day-to-day activities.

Owner alone enjoys the benefits or profits of the business and he alone bears the losses.

The firm has no legal existence separate from its owner. The liability of the proprietor is unlimited i.e. it extends beyond the capital invested in the

firm. Lack of continuity i.e. the existence of a sole proprietorship business is dependent on

the life of the proprietor and illness, death etc. of the owner brings an end to the business. The continuity of business operation is therefore uncertain.

Partnership Firms:

The account should be opened in the name of the firm. The account opening form should be signed by all the partners. A letter of partnership duly signed by all the partners should be obtained. When a minor is admitted as partner in the firm, a letter of restrictive operations should be obtained. Specific operational instructions duly signed by all the


partners to be obtained. Stop payment of the cheque by any partner : Even in case it is signed by another partner the same can be stopped by any partner. Death / insolvency or lunacy of any partner – operations in the account should be stopped.

Limited Liability Partnership:

LLP is a body corporate having separate legal existence having mixed characteristics of Partnership firm & Companies. It is separate from its partners, can own assets in the name, sue and be sued. It has perpetual succession. Every partner is an agent of the LLP. It is to be registered with ROC. The incorporation document shall contain the name of LLP, proposed business, address of the registered office and name & address of each partner. Name to contain 'Limited Liability Partnership' or 'LLP' as suffix. Incorporation Document is not required to contain State in which incorporated. Thus, registered office can be changed to any place in India just by informing ROC subject to prescribed conditions.

LLP Agreement is required to be filed later. In absence of LLP Agreement, mutual rights and duties will be as specified in first schedule to LLP Act. Thus, practically, each LLP must have LLP Agreement, though not mandatory. No restriction on remuneration to partner but it should be provided in LLP agreement. No provision for registration of charges.

Limited Company:

Joint stock Companies are governed by the Companies Act, 1956. A Company is incorporated under the Companies Act. The Company is a separate entity from its members. There are four types of the companies: (1) Public Limited Company (2) Private Limited Company (3) Government Company (4) Limited Liability Partnership. Certified true copy of the following documents are to be obtained at the time of opening of the account. 1. Certificate of incorporation 2. Certificate of commencement of business in case of public limited Co. 3. Memorandum of Association(MOA) 4. Articles of Association 5. Board Resolution to open an account with the bank and operational instructions 6. List of the present directors.

Following care to be taken while maintaining such accounts:

1. The account opening form should be signed as per the resolution passed by the Board 2. Introduction is not necessary for opening of the account because certificate of

incorporation issued by registrar of the companies itself serves the purpose 3. Death of a director does not affect the operation in the account 4. A cheque payable to the company should never be deposited in the personal account of

director 5. While granting any credit facility, purpose clause of MOA of the company must be

verified 6. Provisions of section 293(1) (d) of the Companies Act regarding borrowing in excess of

Net worth to be observed.

Trust Accounts:

A trust is an obligation annexed to the ownership of property, arising out of confidence


reposed in a person/ group of persons and accepted by him/them for the benefit of another or of another and the owner. The persons who, accepts the confidence are called trustees. The instrument/ document by which the trust is created are called the ‗Trust Deed‖.

While opening of the account of a trust following documents are required to be obtained: 1. Copy of the trust deed 2. Copy of the certificate issued by charity commissioner. 3. List of present trustees, 4. Resolution passed by the trust to open and maintain an account with the bank. 5. Operational instruction to operate the account.

Executor and Administrator:

A person to whom the execution of a will is entrusted by the deceased (testator) is called the executor of the will. The executor is supposed to obtain a probate from the court.

For a person who dies without leaving a will (intestate), the court appoints a person to look after the property is called the administrator. Following precautions are to be taken while opening such accounts: 1. A copy of the probate or letter of administration should be obtained and verified with the

original 2. Account in the name of executor /administrator is opened in the style ―xyz

executor/administrator of the estate of …….deceased‖ 3. No credit meant for the account of the estate of the deceased is made to the accounts of

executor/administrator.

Joint Hindu Family:

The concept of HUF is recognized by law. As per the law where a Hindu dies, leaving a business it passes on to the heirs and property becomes the Joint Hindu Family property. The eldest member is called ‗Karta‘ and the members (male as well as female except widow) of the family are called ‗Coparceners‘. HUF cannot be admitted as a partner in the partnership firm.

Following precautions to be taken while dealing with such accounts: 1. HUF letter should be signed by the Karta and all the major co-parceners 2. The account is to be operated by the ‗Karta‘ only 3. Names of the minor coparceners should be kept on record and on attaining the majority

a fresh letter of HUF duly signed by all to be obtained 4. Death, Lunacy, insolvency of the members does not effect the operations in the account

Clubs, Associations:

Clubs, Associations, Committees and Chit Funds etc are not a legal entity unless they are incorporated under the Companies Act. As they have no contractual powers. Following points must be kept in mind while dealing with such accounts:

Clubs can be registered or un-registered. While opening an account in the name of registered club, following documents should be obtained:

1. Copy of Certificate of Registration, 2. Copy of bye laws, rules and regulations.


3. Copy of resolution of the managing committee/governing body etc. 4. A list of the members of the managing committee. 5. No advance including TOD should be permitted.

Co-Operative Societies:

The Society is registered under the Society Registration Act 1960. Documents to be obtained for opening of the account:

1. Copy of Certificate of Registration, 2. Copy of bye laws, rules and regulations. 3. Copy of resolution of the managing committee/governing body etc. 4. A list of the members of the managing committee. 5. No advance including TOD should be permitted.

Local Authorities:

1. Examples are municipal corporations, Zilla boards etc. 2. Bank must obtain copy of such statute and find out the provisions as to who would

authorize opening of the account. 3. Generally these authorities have managing committees, with president, vice president

and treasurer and the treasurer is given powers to open and operate the account. 4. No Overdraft should be given in the account

Government Departments:

1. Copy of the govt. notification should be obtained authorizing the concerned person to open and operate the account

2. Certified copy of rules and regulations framed by the department for opening and operations of such accounts should be obtained


Test your Understanding:

1. In case of deposit accounts the relationship between the banker and customer is that of :- a) Creditor and Debtor b) Debtor and Creditor c) Lessor and Lessee d) Agent and Principal e) Bailer and Bailee

2. In case of safe custody of articles the relationship between banker and customer is that of :- a) Creditor and Debtor b) Debtor and Creditor c) Lessor and Lessee d) Agent and Principal e) Bailer and Bailee

3. LLP stands for :- a) Local Liability Partnership b) Limited Liability Partnership c) Long Lease Partnership d) Liberal Limits Partnership e) None of the above

4. A cheque payable to the company may be deposited in the personal account of its director if such director has majority shares in the company a) TRUE b) FALSE

5. If one of the Director of the company dies, the operations of the company‘s account must be immediately stopped and the account be closed a) TRUE b) FALSE

Answers

Q 1 2 3 4 5

A B E B B B


“Know Your Customer (KYC) and Anti Money laundering (AML)”

Quick Bites Key elements of KYC (know your customer) Key elements of AML (anti money laundering standard) and CFT (combating foreign

terrorism) PML (prevention of money laundering act) Any cash deposit Rs 50000 and above requires PAN or form 60/61 In account opening if KYC is followed,introduction is not mandatory CTR stands for cash transaction report and STR stands for suspicious transaction report

Background:

In a simple terms, the concept of KYC is to:

Know the Identity of the customer and his location Know his nature of activity, Know his source of income, ownership of funds and purpose of transaction Verify / check his background (i.e. whether he is known criminal or Money Launder or on

the list of banned organization or on the list of terrorist individuals / organizations) Monitor transactions against his recorded profile, history on his account and with peers

for detection and reporting of suspicious transaction pertaining to identity thefts, anti money laundering activities and or financing of terrorism.

Know Your Customer and Anti Money Laundering Guidelines

In terms of guidelines issued by RBI, Model Policy on Know Your Customer (KYC) Standards and Anti Money Laundering Measures has been issued.

Objectives

To prevent criminal elements from using the bank for their money laundering activities.

To enable the bank to know / understand the customers and their financial dealings better, which in turn would help the bank to manage and mitigate risks prudently.

To put in place appropriate controls for detection and reporting of suspicious activities in accordance with applicable laws / laid down procedures.

To comply with applicable laws and regulatory guidelines. To take necessary steps to ensure that the relevant staffs are adequately trained so

that smooth implementation of the policy is done.

Money Laundering

―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 the proceeds of crime and projecting it as untainted property shall be guilty of offence of money laundering‖.

Money launderers use the banking system for cleansing ‗dirty money‘ obtained from criminal activities with the objective of hiding / disguising its source. The process of money laundering involves creating a web of financial transactions so as to hide the origin and true nature of these funds.


The term ‗money laundering‘ also covers financial transactions where the end use of funds goes for financing terrorism irrespective of the source of the funds. The Banks are exposed to the following risks which may arise out of Money Laundering activities:

Reputational Risk

It is the policy of the Bank to have risk assessment of the business before establishing business relationship. The Bank shall not accept and/or entertain any instructions or undertake transactions; the source of funds relating to which cannot be ascertained or the beneficial owner of the funds cannot be identified. The funds of the nature as above cannot be accepted as it may result in Reputation Risk to the Bank.

Compliance Risk: The risk comprises of loss due to failure of compliance with key regulations governing the bank‘s operations.

Operational Risk: The risk comprises of loss resulting from inadequate or failure of internal processes, people and systems, or from external events.

Concentration Risk: The Bank has set prudential limits to single borrower/group of related borrowers to avoid concentration of risk at one place/segment.

Legal Risk: The risk comprises of loss due to any legal action, the bank or its staff may face due to failure to comply with the law. The Bank shall carry out KYC and Due Diligence exercises invariably in all relevant cases to mitigate legal risk.

Definition of a Customer

A customer for the purpose of this policy is defined as: A person or an entity that maintains an account and / or has a business relationship

with the bank. One on whose behalf the account is maintained (i.e. the beneficial owner) Beneficiaries of transactions conducted by professional intermediaries, such as

Stock Brokers, Chartered Accountants, Solicitors etc., as permitted under the law. Any person or entity connected with a financial transaction A person that engages in a financial transaction or activity with a banking company,

or financial institution or intermediary and includes a person on whose behalf the person that engages in the transaction or activity, is acting;

Key Elements of the Policy

a. Customer Acceptance Policy b. Customer Identification Procedures c. Monitoring of Transaction and d. Risk Management.

Customer Acceptance Policy (CAP)

1. No account to be opened in anonymous or fictitious / benami name(s).


2. Not to open account or close an existing account where the Bank is unable to verify the identity and/or obtain documents required due to non co-operation of the customer.

3. Necessary checks before opening a new account so as to ensure that the identity of the customer does not match with any person with banned list of individual terrorists or terrorist organizations etc., circulated to the branches.

4. Circumstances, in which a customer is permitted to act on behalf of another person/entity, should be clearly spelt out in conformity with the law and practice of banking.

5. To treat the information collected from the customer for the purpose of opening of account as confidential and not divulge any details thereof for cross selling or any other purposes.

Customer Identification Procedure (CIP)

Having sufficient information about the customer and making use of that information is the most effective tool used to counter the efforts of laundering the proceeds of crime. In addition to minimizing the risk of being used for illicit activities, adequate KYC information provides protection against fraud, enables suspicious activity to be recognised, and protects the Bank from loss of reputation and financial risks.

The Customer Identification Procedures are to be carried out at the time of establishing banking relationship i.e. opening of account and also any time thereafter when the Bank feels it is necessary to obtain additional information from the existing customers based on the conduct or behaviour of the account.

Information collected at the outset for customer identification purpose to include

The purpose and reason for opening the account or establishing the relationship The anticipated level and nature of the activity that is to be undertaken The expected origin of the funds to be used within the relationship Details of occupation/employment to be sought for bank accounts and sources of

wealth or income will be required for banking relationships.

The branches shall have to ensure that the identification of the customer is established within a reasonable time of opening the account. Once an on-going business relationship has been established, any regular business undertaken for that customer shall be assessed against the expected pattern of activity of the customer/type of that account. Any unexplained activity can then be examined to determine whether there is a suspicion of money laundering. The existing accounts are also subjected to KYC requirements using the norms of materiality and risk. When an existing customer closes one account and opens another at the same time, or enters into a new agreement to purchase products or services, there is no need to re-verify identity or address unless the name or the address provided do not match the Bank‘s records. However, branches should take care to guard against impersonation fraud.

The following types of accounts would require higher account opening documentation and due diligence to be carried out at the time of opening new accounts Trust accounts Accounts of companies and firms Accounts of Politically Exposed Persons (PEPs) resident outside India


(Politically exposed persons are individuals who are or have been entrusted with prominent public functions in a foreign country, e.g., Heads of States/ Governments, Senior politicians, Senior government/judicial/military officers, Senior executives of state-owned corporations, important political party officials, etc. The Branches should gather sufficient information on any person/customer of this category intending to establish a relationship and check all the information available on the person in the public domain. The Branches should verify the true identify of such person and seek information about the sources of funds before accepting the PEP as a customer. The decision to open an account for PEP should be taken after obtaining permission from Regional Office)

Fiduciary Accounts – e.g. guardians of estates, executors, administrators, assignees, receivers etc.

Pooled accounts are essentially fiduciary accounts where investments of a number of persons are pooled together.

KYC Documentation for different types of liability accounts

The new documentation guidelines below will be applicable to all new Customers opening Current, Savings and Term deposit Accounts as well as existing customers opening new Transaction accounts (except where existing documentation conforms to these revised documentation standards). The nature and type of documents / information that may be relied upon for customer identification is given below –

1. Passport 2. PAN card 3. Voter‘s Identity Card 4. Driving license and photograph 5. Identity card / confirmation from employer (subject to the bank‘s satisfaction) 6. Letter from a recognized public authority or public servant verifying the identity

(Photo) and residence of the customer to the satisfaction of bank 7. Confirmation/Letter from employer/ other bank verifying therein photograph of the

person along with other things. (any one or more documents from above list confirming customer‘s identification subject to satisfaction of the Bank)

Address proof through:

Passport Voter‘s Identity Card Driving license Telephone bill Bank account statement Letter from any recognized public authority Unique Identification Card Electricity bill Ration card Letter from employer (subject to satisfaction of the bank). For close relatives like wife, son, daughter and parents etc. who live with their

husband, father/mother and son, as the case may be, the branches can obtain an identity document and a utility bill of the relative with whom the prospective customer is living along with a declaration from the relative to the effect that the prospective customer is staying with him / her.


Recently, Govt. of India amended the norms & issued the guidelines to accept ―AADHAAR‖ card issued by UIDAI as customer identification & Address proof.

In modification of instructions quoted above, branches are advised that they may now accept NREGA Job Card as an ‗officially valid document‘ for opening of bank accounts without the limitations applicable to ‗Small Accounts‘.

1. If the address on the document submitted for identity proof by the prospective customer is same as that declared by him/her in the account opening form, the document may be accepted as a valid proof of both identity and address

2. If the address indicated on the document submitted for identity proof differs from the current address mentioned in the account opening form, a separate proof of address should be obtained.

Clarification regarding introduction

Since introduction is not necessary for opening of accounts under PML Act and Rules or Reserve Bank‘s extant KYC instructions, branches should not insist on introduction for opening bank accounts of customers. (Refer circular no ho_br_104_252)

For a/c opening of foreign students studying in India

To avoid inconvenience to the foreign students in opening of bank accounts, branches can open an account in the name of foreign students studying in India provided submission of

1. Passport – as the document for proof of identity 2. Valid Visa – a visa with photograph in it can also serve as an identity proof 3. Proof of admission – a letter from the university or college 4. Address proof – a letter from the college or hostel, certificate from embassy of the

country of origin or any appropriate legal authority certified local address in India / Certification of registration issued by Foreigner Registration Regional Office (FRRO) / Rent agreement (however, in such a case landlord may not be forced to visit the branch for verification of documents and branch may depute an officer to visit the landlord for the purpose)

Branches should ensure to offer zero-balance accounts with ATM facilities to foreign students

For rural branches

In the absence of any of the above documents, ration card/ certificate from the local body/ NGO/MFI will suffice for establishing identity and address of the applicant.

In case of Proprietorships, the Proprietor would need to submit as below.

1. Proof of the name, address and activity of the concern, like registration certificate (in the case of registered concern). 2. Certificate / license issued by the municipal authorities under Shop & Establishment Act. 3. Certificate / registration document issued by Sales Tax / Service Tax / Professional Tax authorities. 4. Utility bills such as electricity, water and landline telephone bills in the name of proprietary concern.


5. License issued by the Registering authority like certificate of Practice issued by Indian Institute Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food And Drug Control Authorities, etc. 6. The complete Income Tax return (not just the acknowledgment) in the name

of sole proprietor where the firm‟s income is reflected duly authenticated/ acknowledged by the Income tax authorities.

7. Sales and Income tax returns. 8. CST / VAT certificate. 9. Registration/ Licensing documents issued in the name of the proprietary concern by Central government or State Government authority/ department. 10.Importer Exporter Code (IEC) issued to the proprietary concern by the office of DGFT as an Identity document for opening account.

Accounts of partnership firms

1. Legal name 2. Address 3. Names of all partners and their addresses 4. Telephone numbers of the firm and partners 5. Registration certificate, if registered 6. Letter of Partnership 7. Power of Attorney granted to a partner or an employee of the firm to transact business

on its behalf 8. Any document (as given above for individual accounts) Identifying the main partners and

the persons holding the Power of Attorney and their addresses 9. Photographs of partners 10. Telephone bill/utility bill in the name of firm/partners

A certified copy of the above duly verified with the original shall be obtained.

Accounts of companies:

1. Name of the company 2. Principal place of business and registered office 3. Mailing address of the company 4. Telephone/Fax Number 5. Certificate of Incorporation and Memorandum & Articles of Association 6. Resolution of the Board of Directors to open an account and list of officials authorized to

operate the account 7. Identification of authorized signatories should be based on photographs, and signature

cards duly attested by the company 8. Power of Attorney, if granted to its managers, officers or employees to transact business

on its behalf 9. Copy of PAN allotment letter in the name of the Company.


Accounts of trusts & foundations

1. Names and addresses of the founder, managers/directors and the beneficiaries 2. Telephone/fax numbers


3. Certificate of Registration, if registered 4. Power of Attorney granted to transact business on its behalf 5. Any document listing out the names and addresses of trustees, settlers, beneficiaries

and those holding Power of Attorney, and other key officials involved in the day to day management of the trust to the satisfaction of the respective bank.

6. Resolution of the managing body of the foundation/association 7. Photograph of operating trustees 8. Telephone bill/utility bill 9. Identification and address proof document of the person holding an attorney to transact

on its behalf


Individual NR Accounts

1. Accounts to be opened on the basis of the following documents- 2. Passport & Residence Visa - Copies of these documents sighted in original by the bank

official or duly attested by Banker/Notary Public/Indian Embassy/ Employer to the satisfaction of the bank.

3. Mis-spelt Names in the Identification Proof documents If the name has been mis-spelt on the document, the document can be accepted provided the document is a photo document and the photograph resembles the photograph submitted with the Account Opening Form (AOF) and the address on the document is the same as that on the AOF.

4. There should not be any ground of doubt while opening the account.

Minor‟s Account

Often a family member or guardian would open an account for a minor. In cases where the adult opening the account does not already have an account with the bank, the identification proof for that adult or any other person who will operate the account should be obtained. In case of self operated minor accounts in addition to the photograph and proof of age, the documents required to establish the identity and address as applicable in the case of Individual be obtained.

Joint Account

In case of joint accounts, applicants who are not closely related to each other (as can be inferred from the Account opening form) would require to establish their identity and address independently and submit separate documentary evidence towards identity and address proof.

Society/Associations/Clubs

In the case of applications received on behalf of clubs or societies, branches shall satisfy themselves as to the legitimate purpose of the organisation by going through the constitution. The identity of the authorised signatories should be verified initially in line with the requirements for personal customers. When signatories change, care shall be taken to ensure that the identity of any new signatories has been verified.

The following documents to be obtained for opening accounts of Clubs, Societies and Associations wherever applicable: 1. Resolution for opening of the account


2. A copy of Bye-laws 3. Copy of certificate of registration in the case of registered clubs, societies and

Associations. 4. Identification and address proof document, photographs of all signatories

Hindu Undivided Family [HUF]

HUF comes into being because of a particular concept under Hindu Law whereby all the members of the family reside together jointly, carry on a business activity jointly and hold the property jointly and therefore, it is termed as Hindu Undivided Family.

The following documents to be obtained for opening accounts of HUF:

Declaration from the Karta. Proof of Identification and address of the Karta. Prescribed Joint Hindu Family Letter signed by all the adult co-parceners.

Verification of documents

The identification documents obtained in course of CUSTOMER DUE DILIGENCE measures should be verified from the originals/ and by other means to the satisfaction of bank, and the official verifying the documents with the originals shall authenticate the copies by affixing his signature with words “

Verified with Original” Flexibility in KYC standards to ensure there is no financial exclusion of poor people. While carrying out due diligence the bank will ensure that the procedure adopted will not result in denial of banking services to the general public especially those who are financially or socially disadvantaged. Wherever, the prospective customer is unable to produce proof of address (e.g. Children, dependent relatives, domestic servants etc) to the Bank, in such cases, the bank may at its discretion, based on materiality and risk, rely on suitable declarations and supporting documents to establish the address and take reasonable care in this respect. With a view to ensure that strict adherence to KYC Standards would not result in basic banking services being denied to underprivileged segments of the society.

For persons who intend to keep balances not exceeding Rs.50,000/- and where total credits are not expected to exceed Rs.1,00,000/- in a year. Such accounts are made to conform to regular KYC standards as and when the turnovers in the accounts or average balances exceed the above limits and no further transactions are to be allowed in the account unless it conforms to usual KYC norms.

Persons who receive one time payments from government or other agencies on exceptional circumstances (death claims, grant of relief etc.) in excess of the prescribed limit may be allowed to open accounts as per the simplified norms.

Identification for non-account holders for one-off transaction

Customer Identification Procedures will also be carried out in respect of non-account holders approaching bank for high value one-off transaction. Customer approaching for one-off transaction shall have to submit an identification proof to the satisfaction of the Bank.


Monitoring of Cash Transactions

Besides recording and reporting of cash transactions of Rs.10/- lacs and above branches are required to issue Demand Drafts/Banker‘s cheques Mail Transfer and Telegraphic Transfer for Rs.50,000/- and above only by debit to customer‘s account or against cheque and not against cash.

Quoting of PAN/GIR number

PAN/GIR number is required to be quoted as under: 1. A time deposit exceeding Rs.50,000/- with a Banking Company. 2. Opening of an account with Banking Company, other than a time deposit account. In

case Pan / GIR No. is not made available then declaration in form No. 60 / 61 to be filled by the customer.

3. Amount received in cash for purchase of Bank drafts and/or Pay orders and/ or Banker‘s Cheques for an amount aggregating Rs. 50,000/- or more during any one day.

4. Payment in cash for purchase from Bank, foreign currency in connection with travel to any foreign country of an amount exceeding Rs. 25,000/- at any one time.

5. Any cash deposit aggregating Rs. 50.000/- in any one-day.

The Pan No. is to be verified with the original PAN card.

The following cash transactions are to be reported

1. All cash transactions of the value of more than Rs.10/- lacs or its equivalent in foreign currency;

2. All series of cash transactions integrally connected to each other which have been Valued below Rs.10/- lacs or its equivalent in foreign currency where such series of transactions have taken place within a month.

3. While filing CTR, individual transactions below rupees fifty thousand may not be included.

Obligation of the Staff

1. The bank shall ensure that all employees are aware of their obligations and have an up-to-date knowledge of statutory and regulatory requirements so that they effectively practice these to combat money laundering and prevent usage of our Bank as conduit for money laundering purposes by the criminal elements of the society.

2. It should be ensured that there is no undue delay in arriving at such a conclusion once a suspicious transaction report is received from a branch or any other office. Any lapse and intentional circumvention on prescribed procedure and guidelines of KYC and AML will be viewed seriously and necessary action will be taken as deemed fit by management.

3. The branch will regularly hold meetings of the staff and the minutes will be recorded at branch level under the signature of the Branch Head confirming dissemination of the contents of the circulars that are issued by the higher authorities on the subject of Anti-Money Laundering from time to time.

4. It is an offence under Prevention of Money Laundering Act (PMLA) 2002 not to report suspicious activity/transaction as indicated above and punishable with a fine of not less than Rs 10,000/ and may extend up-to Rs 1 lac for each failure.


Fictitious offers of cheap funds from abroad-adherence to KYC/AML guidelines in Opening / monitoring of transactions in accounts.

1. Generally the fraudsters open and route transactions through salary/savings accounts categorized as low risk, by way of small initial deposits to evade detection. The branches should probe the abnormal patterns of transactions vis-à-vis profile of the customers especially salary accounts, newly opened accounts in the initial 3-6 months of their opening.

2. The customers should be sensitized regarding such lottery winnings where they have been advised to deposit money in specified accounts. The branches should also publicize the same.

3. The branches may sensitize the front office/operations desks as soon as a CTR/STR is filed in an account to alert dealing staff.

Branches are further advised to report such Suspicious Transactions if any as

Suspicious Transaction Reports (STRs) to the Principal Officer (PO) for onward submission to FIU-IND

Customer Education

The bank recognizes the need to spread awareness on KYC, Anti Money Laundering measures and the rationale behind them amongst the customers. The Bank shall prepare literature/ pamphlets etc. so as to educate the customer of the objectives of the KYC programme.

KYC for the existing accounts

While the KYC guidelines will apply to all new customers, the same will be applied to the existing customers also. In this connection, all the branches have been advised to ensure KYC compliance in all existing accounts including identity of the natural / legal person and those of the ‗beneficial owners‘. Similarly, the Bank has also ensured that term / recurring deposit accounts are subject to KYC procedures at the time of renewal of the deposits. Branches to undertake periodical updation of KYC data (including photograph/s) after the account is opened. The periodicity of such updation should not be less than once in five years in case of low risk category customers and not less than once in two years in case of high and medium risk categories.

At Branch level report through RPTRA menu should be taken out for ready reference and for inspection purpose on every half year in January and July and efforts should be made to control accounts of high risk and medium risk category.

Indicative List of Suspicious Activities 1. Exchanging an unusually large amount of small denomination notes for those of higher

denomination; 2. Purchasing or selling of foreign currencies in substantial amounts by cash settlement

despite the customer having an account with the bank; 3. Frequent withdrawal of large amounts by means of cheques, including traveller‘s

cheques; 4. Frequent withdrawal of large cash amounts that do not appear to be justified by the

customer‘s business activity;


5. Large cash withdrawals from a previously dormant/inactive account or from an account which has just received an unexpected large credit from abroad;

6. Company transactions, both deposits and withdrawals, that are denominated by unusually large amounts of cash, rather than by way of debits and credits normally associated with the normal commercial operations of the company, e.g. cheques, letters of credit, bills of exchange etc.;

7. Depositing cash by means of numerous credit slips by a customer such that the amount of each deposit is not substantial, but the total of which is substantial.

Transactions that do not make Economic Sense

1. A customer having a large number of accounts with the same bank, with frequent transfers between different accounts;

2. Transactions in which assets are withdrawn immediately after being deposited, unless the customer‘s business activities furnish a plausible reason for immediate withdrawal.

Activities not consistent with the Customer‟s Business

1. Corporate accounts where deposits or withdrawals are primarily in cash rather than cheques.

2. Corporate accounts where deposits & withdrawals by cheque/telegraphic transfers/foreign inward remittances/any other means are received from/made to sources apparently unconnected with the corporate business activity/dealings.

3. Unusual applications for DD/TT/PO against cash. 4. Accounts with large volume of credits through DD/TT/PO whereas the nature of

business does not justify such credits. 5. Retail deposit of many cheques but rare withdrawals for daily operations.

Attempts to avoid Reporting/Record-keeping Requirements

1. A customer who is reluctant to provide information needed for a mandatory report, to have the report filed or to proceed with a transaction after being informed that the report must be filed.

2. Any individual or group that coerces/induces or attempts to coerce/induce a bank employee not to file any reports or any other forms.

3. An account where there are several cash deposits/withdrawals below a specified threshold level to a avoid filing of reports that may be necessary in case of transactions above the threshold level, as the customer intentionally splits the transaction into smaller amounts for the purpose of avoiding the threshold limit.

Unusual Activities

1. An account of a customer who does not reside/have office near the branch even though there are bank branches near his residence/office

2. A customer who often visits the safe deposit area immediately before making cash deposits, especially deposits just under the threshold level. Funds coming from the list of countries/centres, which are known for money laundering.

Customer who provides Insufficient or Suspicious Information

1. A customer/company who is reluctant to provide complete information regarding the purpose of the business, prior banking relationships, officers or directors, or its locations


2. A customer/company who is reluctant to reveal details about its activities or to provide financial statements

3. A customer who has no record of past or present employment but makes frequent large transactions.

Certain Suspicious Funds Transfer Activities

1. Sending or receiving frequent or large volumes of remittances to/from countries outside India.

2. Receiving large TT/DD remittances from various centres and remitting the consolidated amount to a different account/centre on the same day leaving minimum balance in the account.

3. Maintaining multiple accounts, transferring money among the accounts and using one account as a master account for wire/funds transfer.

Certain Bank Employees arousing Suspicion

1. An employee whose lavish lifestyle cannot be supported by his or her salary. 2. Negligence of employees/willful blindness is reported repeatedly.

In terms of PMLA rules, suspicious transactions include inter alia transactions which give rise to a reasonable ground of suspicion that these may involve financing of the activities relating to terrorism. The branches are also supposed to submit CCR (Counterfeit Currency Report) to FIU, New Delhi. The KYC norms / AML standards / CFT (Combating financing of Terrorism) measures have been prescribed to ensure that criminals do not misuse the banking channels.

Amendments in the KYC-AML-CFT policy, opening of “Small Account” – for details refer to HO:BR:103.55 dated 19.03.2011.

Counterfeit notes case Treatment

The prevention of Money-Laundering (PML) Act, 2002 and the rules thereunder require banks to submit to FIU-IND, all cash transactions where fake / forged or counterfeit currency notes have been used as genuine.Apart from obligation under PML Act, 2002, branches have to realize the threat by criminal elements in waging economic terrorism through injection of fake currency notes. Branches including currency chest branches are, therefore, advised that;

1. Fake / forged Notes detected in cash received are neither to be destroyed nor to be handed over to the customer.

2. Fake/Forged Notes are to be impounded by following prescribed procedure. Receipt in the prescribed format to be given to depositor / tenderer.

3. FIR to be lodged with the police authorities on the same day as per the prescribed format.

(Except detection of counterfeit notes up to 4 pieces in a single transaction. In this case consolidated report is to be submitted to police authorities at the end of month in prescribed format as circular no.HO:BR:103:162 dated 02.08.2011)

New guidelines

1. In case of change of mobile no of customers branches need to enhance monitoring by calling on such mobile no or seeking information through email


2. Branches may transfer existing accounts at another branches without insisting on proof of address on self declaration basis subject to submitting of proof of address within six months


TEST YOUR UNDERSTANDING 1. KYC/AML act passed in

a) 2000 b) 2001 c) 2002 d) 2003 e) 2004

2. Which is not a key element of KYC

a) Customer acceptance b) Customer identification c) monitoring of transaction d) risk management e) none of these

3. Which is not necessary for opening a saving account

a) Identity proof b) address proof c) Introduction d) Photograph e) all are necessary

4. Cash transactions are mandatorily be reported

a) Above 2 lac b) above 5 lac c) above 10 lac d) above 15 lac e) above 20lac

5. When a customer is not in a position to submit PAN while depositing Rs 50000 or more , he/she is required to provide

a) Identity proof b) address proof c) form no 35(A) d) form no 60/61

Answers

Q 1 2 3 4 5

A c e c c d


“HR Polices of Bank and Service Conditions of Officers”

Quick Bites Bank has Progressive HR Polices in areas of Recruitment, Career Progression,

Promotion, Transfer/deployment, Performance Management, Training, and Overseas Deployment in line with best HR Practices.

Bank of Baroda provides excellent career development opportunities to officers. These opportunities offers scope of developing personally and professionally.

Officers have opportunities to work in overseas branches and offices also. Bank Provides comprehensive Trainings in functional, technological and behavioural

areas . Employees are also deputed for external Training as also for overseas Training. Eligible employees are reimbursed fees for pursuing professional and computer education

in addition to incentives.

HR Polices

Bank has Progressive HR Polices in areas of Recruitment, Career Progression, Promotion Policy, Transfer/deployment, Performance Management, Training, and Overseas Deployment in line with best HR Practices.

Bank of Baroda provides excellent career development opportunities to officers who joined General stream as also to those officers who joined as Specialist officers. We make the decision to hire based on your potential to succeed, and we help you achieve that potential.

Careers, here are challenging and offer you scope of developing personally and professionally. You will be expected to contribute from your first day, and as your skills grow, so will the level of your responsibilities. There are various ways to learn. Bank partner with you to identify the areas you need to grow professionally through, on the job training, on-the-job experiences, internal as well as external training and exposure to various challenging assignments including assignments at overseas branches of Bank.

Career development opportunities are available both vertically as also horizontally. Your function may offer function-specific development opportunities as part of your orientation and skill building. There are various roles at branch in different functional areas such as credit, marketing, foreign exchange business, retail banking and branch operations. The role of branch head is of course the most challenging role available to officers beginning from heading small branch to medium, large, very large and exceptionally large branches (classification depending on business.) To maximize your professional growth and performance, exposure will be given in above areas to ensure imparting experiences, knowledge and skills you need to improve to become an effective and confident leader. The Bank helps you achieve future growth and eases your transition into roles with more responsibility.

After completion of certain tenure in branch operations, officer is also exposed to roles in Regional, Zonal and Corporate level involving policy framing and policy executing in above functional areas i.e. credit, marketing, foreign exchange, retail banking ,HR,IT, Risk Management, Treasury Operations, Rural and Agri Banking and branch operations.


Vertical Career Progression:

Bank has Promotion Policy based on competencies and meritocracy details are as under: (Ref: Circular no. BCC:BR:102:94 dated 15.03.2010)

Career path policy for Generalist and Specialist officers (BCC/BR/104/445 dated 11.12.2012)

For Generalist Officers: The policy envisages that all generalist officers need to have certain exposures in:

Exposure to cross functional roles Credit Roles Branch Head Administrative Roles Roles across geographies

For Specialist Officers:

Specialist officers can either opt for conversion path to operations after a minimum period of 5 years in the specialization area and before promotion to scale-V or can continue in specialist area. There will be a mandatory conversion to the generalist scheme for Agriculture officers in scale –IV.

Specialist officers career progression to higher scales will be in specialist stream only and will depend on available vacancies in the respective specialist cadre.

Specialist officers in Agriculture, Finance, Credit, Forex, Risk management, Treasury, Chartered accountant and Wealth management will be treated under general stream for the purpose of career progression.

Mandatory operations stint for certain specialist officers :

This mandatory operations stint will be given to these specialists in scale-I and scale-II after completion of at least 2 years in specialized cadre.

One year compulsory branch operation exposure for HR, IT, Planning Specialists 3-6 compulsory branch operations exposure for Law specialists

Bank‟s Promotion Policy

Minimum length of service in each Grade/Scale

Merit & Performance based promotions

Promotions linked to vacancies

Provides career growth on basis of following factors: Knowledge Performance Potential Benchmarking at every stage in selection

PROMOTION AND CAREER GROWTH (Cir.No.BCC/BR/102/92 dated 15.03.2010)


The promotion policy of the Bank has been revised and the new policy has been framed with the objective to make it responsive to the needs of the Bank as also the aspirations of Officers. As per the policy there are -02- channels of promotion in Officers cadre upto SMG/S-IV. The details of the same are as under :

PROMOTION FROM NORMAL TRACK FAST-TRACK

JMG/S-I to MMG/S-II -05- Years -03- Years

MMG/S-II to MMG/S-III -04- Years -03- Years

MG/S-III to SMG/S-IV -03- Years -02- Years

SMG/S-IV to SMG/S-V -02- Years --

SMG/S-V to TEG/S-VI -02- Years --

TEG/S-VI to TEG/S-VII -02- Years --

The eligibility for the Fast-Track channel shall be limited to the Performance factor for which the criteria stipulated is a minimum of 75% performance score in each of the last -03- year‘s performance ratings.

GOVERNMENT GUIDLINES FOR PROMOTIONS (Cir.no. BCC/BR/104/445 dated 11.12.2012) Two years continuous rural service is required for promotion from Scale-I to II. Total of three years rural/semi-urban service (including rural service in scale I) is

required for promotion from Scale-II to III. For being eligible for promotion to Scale-V, candidate should have been a Branch

Head at least three years. For promotion to scale-VII, the candidate should have worked as RH or have worked

in scale-III to V in RO for two years. During interview for scales-V,VI and VII weightage should be given to the following :-

a) Whether the officer has worked in different specialized areas of the bank. b) Whether officer has been posted to different parts of India or has been only

one/few Region/Circle. c) Whether the officer has experience of working in the field as well as working

in administrative offices. d) Whether the officer has professional qualifications and/or has the officer has

acquired any additional qualification after joining the bank.

JM-I to MM-II

Minimum Service Required in JM-I :

Normal Channel : -5- years of service Fast-Track Channel : -3- years of service provided Minimum 75% performance

score in last –3- years performance ratings

MM-II to MM-III

Normal Channel-Minimum 4 years service in MM-II Mandatory 3 years Rural/ SU service for Generalist officers


Fast-Track Channel : -3- years of service provided Minimum 75% performance score in last –3- years performance ratings . Mandatory 3 years Rural/ SU service for Generalist officers

MM-III to SM-IV

Normal Channel- Minimum -3- years service in MM-III Fast Fast-Track Channel : -2- years of service provided Minimum 75% performance

score in last –3- years performance ratings

SM-IV to SM-V

Minimum -2- years service in SM-IV provided Minimum 75% marks in APR/EPMS for each of the years of service reckoned for eligibility for promotion. SM-V to TEG-VI

Minimum 2 years service in SM-V provided Minimum 75% marks in APR/EPMS for each of the years of service reckoned for eligibility for promotion.

TEG-VI to TEG-VII

Minimum 2 years service in TEG-VI provided Minimum 75% marks in APR/EPMS for each of the years of service reckoned for eligibility for promotion.

Other aspects on Eligibility

Relaxation/ Exemption in Rural/ SU Service Physically handicapped Officers having mentally retarded children Temporary exemption to Officers Posted abroad till they are abroad. Sports persons (for games recognised by Banks‘ Sports Board) Bank‘s Board can relax Minimum Qualifying Service

Periodicity : Every Year as far as possible

Vacancies: Vacancies to be determined before commencement of promotion exercise

Selection Area All Officers in India and expatriates posted abroad No. of officers to be considered restricted 3 to 4 times number of vacancies.

Written Test (upto SM-III)

For assessing knowledge For assessing preparedness/ ability to take up higher responsibilities Content/ Type of Written Test as per Bank‘s needs For Specialists : Test in respective Field (except Agri & Credit Officers) Bank may engage external professional bodies

Interview: For assessing potential


Benchmarks:

Written Test: Minimum qualifying marks: 40 % Performance Ratings: Minimum average of last -3- years should be 60% Potential/Interview: Minimum qualifying marks 50 % upto Scale IV and 70% for

promotion from Scale V onwards Aggregate: Minimum qualifying marks 60% upto scale IV and 70% from Scale V

onwards.

Employee performance Management System ( EPMS)

Implementation of Annual performance Appraisal Reports ( APAR) w.e.f. 2011-12 (BCC/Br/104/129 dated 16.04.2012, BCC/BR/105/17 dated 16.01.2013)

Bank has implemented very comprehensive Employee Performance Management System. There are 5 key components of Employee Performance Management System :

1. Performance Planning : This is the stage of mutual goal-setting for finalizing KRAs and Business/ Strategic Initiatives in respect of officers posted at administrative offices. The KRAs are mainly divided into 2 parts :

(i) Financial/ Business KRAs and (ii) Customer/ Process KRAs

Business/ Strategic Initiatives are required to be finalized in respect of functional area which should help in improving the officers‘ performance in the broad KRA areas and also help in attainment of unit‘s/ departmental objectives. Each of these initiatives shall be strictly measurable/ verifiable and are to be set and assessed on a quarterly basis.

2. Performance Observation : This involves :

(i) Mid-Term Review ; (ii) Re-setting of Goals, as required ; (iii) Setting and assessment of initiatives on a quarterly basis(for officers in Admn.

Offices)

3. Performance Analysis : This involves :

(i) Self-appraisal/ scoring ; (ii) Appraisal by Reviewing Authority (RA) ; and (iii) Appraisal by Final Reviewing Authority (FRA).

4. Performance Review Discussion :

This involves indicating the final ratings giving feed-back to the individual officer on his performance during the year and goal setting for the next year.

5. Performance Development Plan : The plan should include further development of the officers and planning how to improve their performance further. This plan then forms the basis of further development action by HR Department at Regional Office.


Other salient features of Performance Management System :

Transparency

The system is an open transparent system from the very start to finish and allow the officers to first score on each parameter except competency dimension which becomes the basis of reviewing authorities for assessments.

Performance with Bank‟s Goals

Another notable feature of this new system is that individual plans/ targets/ objectives are now to be linked to the Unit‘s/ Branch‘s/ Department‘s/ objectives for the year and thereby relationship between the organizational performance and individual performance is sought to be established. Targets shall not rest at the level of the operating unit‘s head and have to now percolate down to the level of the individual officer, thereby linking the individual performance to the Unit‘s performance.

Financial/ Business KRAs

Another notable feature is that all officers in Branches below Branch head have to mandatorily finalise some Financial/ Business KRAs by way of quantitative targets for selling/ cross-selling, carrying a compulsory weightage of 30 marks. Similarly, initiatives need to be mandatorily pre-finalised and assessed for officers in Administrative offices on a quarterly basis.

KRA dictionary

To facilitate the process of finalizing on the Key Result Areas and Key Performance Indicators (KPIs) for all officers, a comprehensive KRA dictionary has been prepared containing a ready exhaustive list of both Financial/ Business KRAs and the Customer/ Process KRAs pertaining to functions/ activities/ Departments in a Branch/ Regional/ Zonal/ Corporate Office.

Performance Review Discussion:

The new system requires discussing the final scores to the individual officers. This intervention alongwith the rigorous goal-setting mechanism being introduced will enable a greater degree of objectivity in the entire performance assessment process and also induce a greater level of transparency. Performance review discussion meeting is not just for the ratings or analyzing the performance over the last year but also taking stock of the problems encountered, finding solutions, offering support as required and planning/ goal- setting for the next year. Reviewing Authorities will be required to undertake the performance review discussion at the end of the year which is a 1-1 meeting between him and individual officer and to provide elaborate feedback to the officer.

The Government has devised four types of formats for APAR which are now mandated to be used for all officers. APAR for officers in scale-I to Scale-VI ( Budgetary) This form shall be used for the

performance of Officers/Executives posted in the Budgetory positions. (Branch Heads, Regional Heads, DRMs, Dy. Zonal Heads,Chairmen and regional Managers of RRB sans Associate banks.

APAR for officers in scale-I to Scale-VI ( Non-Budgetary) this form shall be applicable for the other officers,whether working at branches or at Administrative


office including Corporate DGMs,Officers and Heads of specialised branches/outfits like TCs, ZICs, SMELFs, RLFs, CSOs, CBOs, ARMB, CFS,RBOs, Service Branches, etc.

APAR for officers in scale-VII (General managers) This form shall be applicable for all General managers including Zonal Heads in the rank of GM.

APAR for CMDs and EDs

New three tier system of Reporting, Reviewing and Accepting Authoritues 1. Reporting Authority 2. Reviewing Authority 3. Accepting authority

Communication of final scores In APAR system final ratings will be uploaded in HRnes for all officers in Scale-I to scale-IV, which individual officers will be able to view through Self service module.

[

Horizontal Career Progression:

Bank also has a highly objective and transparent selection process for identification and selection of officers for posting abroad details of which is given in Annexure 1.

Employees having aptitude for teaching has option to choose role of faculty in Bank‘s Training system. Normally Scale III and Scale IV officers are selected for faculty Position. In exceptional cases, Scale II officer is also selected as faculty. Selection for Faculty position is done through group Discussion/Presentation/Interview. Normal tenure given in Training system is -5- years. Officers selected as faculty is given additional incentive by way of deputation allowance.

Building Competencies

For building competencies, Bank has Strong rooted Training System through Apex body Staff College and 13 other Institutes including Special Institute for IT courses with all modern facilities. The Governing Board on Training, which is the apex body in the Bank on training matters, outlines the Training policy for the Bank as a whole.

New employees enroll in the "Induction Programme‖, an internal, introduction to bank‘s values, business indicators and functional areas that support our business goals. As each career path comes with its own unique set of dynamics, we offer specialized training as well, including comprehensive programme on ―Grooming officers in wholesale banking, SME and forex. Apart from such specialized programmes, other programmes are also conducted in Key areas viz marketing, HR, IT, Legal, Wealth Management, Security/Fire, Vigilance, Inspection and Audit etc. to support employees at critical career transition points.

Grooming is done through

In House Training On the Job Training External Training Job Rotation E-Learning/Global Virtual Class


Bank also makes extensive use of external training resources of prestigious management institutes and training institutions in India like National Institute of bank Management (NIBM), College of Agriculture Banking, Pune, Banking Institure of Rural Development (BIRD), Lucknow, Indian Institute of Management(IIMs) at Bangalore/ Ahmedabad, Indian Institute of Banking & Finance, Mumbai ( IIBF) etc.

Pursuing Professional and Computer Education:

To empower (For details refer Circular no. BCC:BR:95:208 dated 1.06.2004) Knowledge has become a key differentiator today and it can be safely said that this is a knowledge era where knowledge is the real key to success and acquisition of knowledge, a prime driver of development. Knowledge, unlike cost and technology cannot be copied but it can be used to deliver value to our customers in a way that our competitors cannot emulate. ‗KNOWLEDGE IS POWER‘.

With this objective and also to empower our employees in their pursuit of more advanced and specialized knowledge, a scheme is framed which seeks to tap the in-house talent by encouraging the employees interested in pursuing Professional and Computer Education offered by recognized institutes of repute. Bank reimburses eligible employees for the cost of job-related courses from accredited institutions with monetary incentives on successful completion of those courses. The loans are also available for employee education.

Course Coverage - Professional Courses & Information Technology Courses Loan amount (Max)- Rs.1,00,000 & Rs.50,000 (however, in certain courses like BCA/ MCM/ MCA /BTech/MTech In Computers – Rs.1,00,000) Incentives on successful completion of courses – Ranging from Rs.5,000/- to Rs.10,000/- depending on the nature of Course completed.

For further details, please refer to circulars: BCC/BR/91/243 dated 11.08.99 BCC/BR/96/208 dated 01.06.04

E learning Initiatives of Training System

To broaden the reach of Training System and to have cost effective learning, that too at the convenient time of staff members, we have initiated few major steps.

1.Quiz of the Month: (uploaded in Knowledge Management Portal)

The path to access the Quiz of the Month is as under: Login to KM Portal Click More Click Baroda e-LearningClick Quiz.

2. Baroda e-Learning: (Uploaded in Knowledge Management Portal)

The path to access the Baroda e-Learning is as under: Login to KM Portal Click More Click Baroda e-LearningClick Study Room. Following e_Learning Modules are uploaded in Baroda e_Learning .

1 Pre Induction Course contains 5 modules. 2 E_Channel Products contains 3 modules.


3 KYC & AML 4 Micro Finance contains two modules. 5 Finacle Staff Housing Loan 6 Simulator Cheque Module

3.E-learning modules in Oracle Learning Management (Through HRnes HRMS)

Following e_Learning Modules are uploaded in OLM.

1 Pre Induction Course contains 5 modules. 2 E_Channel Products contains 3 modules. 3 KYC & AML 4 Financial Inclusion. 5 Finacle Staff Housing Loan

While E channel Products , KYC & AML and Financial Inclusion module is useful to all employees, Pre Induction course is targeted for new recruits .However, even existing employees can go through it to refresh their knowledge as it covers all areas of our Bank. There is some time leg between new recruits joins the Bank and comes to classroom for Induction programme on account of administrative reasons. This module will facilitate them to know about Bank immediately after joining the Bank.

One can access these modules in HRnes HRMS by following steps:

Type url http://ebizapp.bankofbaroda.co.in:8004/ in CBS PC. Enter your Username & Password of HRnes to logon. Click BOB Learner Self Service in Navigator then click Learner Home Select the Value as Class in Search and type e% or Pre Induction% ,then click go

Course Name e Channel Products or pre Induction Course will appear as per search option. At Right most of the course , click Enroll and click Apply.

A confirmation message “You have successfully enrolled in the class e Channel Products or Pre Induction Course as per option selected will appear.

Course will appear with active “Play “ Button.

Additional channel of learning through KM Portal and OLM will facilitate employees in continuous learning and we are confident that learners of our Bank will enjoy this innovative and technology driven learning methodology.

Other measures for building Competencies:

Sponsorship to Post Graduate certificate/diploma courses at National Institute of Bank Management (NIBM), Pune and Institute for Development and Research in Banking Technology (IDRBT), Hyderabad etc. and Xavier Institute of Management, Bhubanshwar.

Star Performers and Officers with potentials are sent for overseas training, thereby imparting knowledge, building competencies and enabling them to have a wider international exposure.

Introduction of unique organization wide Talent identification and Development Programme called ―KHOJ‖. and ― Talent Pool”

holding various knowledge management events setting up of the Learning Resource centre


Facilitating Organisation Culture

Tenets of sharing, openness, collaboration, confrontation, autonomy and high business ethics.

Right developmental inputs go into the creation of a positive attitude and the right mindset.

Open work systems, which encourage ideation, encouragement, nurturance and leadership support, are the hallmark of the BOB‘s organizational framework.

SERVICE CONDITIONS

The service conditions of Officers are governed by the Bank of Baroda Officers‘ Service Regulations -1979 (BOBOSR-1979)

APPOINTMENTS

All appointments in the Officer‘s cadre are made in terms of the Officers‘ Service Regulations by the Competent Authority and the Government guidelines issued from time to time including guidelines on reservations for SC/ST/OBC/Ex-servicemen/physically challenged, etc.

PROBATION

(Cir.No.BCC/BR/102/72 dated 06.03.2010)

The period of probation for different category of Officer is as follows:

CATEGORY OF OFFICERS PERIOD OF PROBATION

Directly appointed as Officers (DRO) to the Junior Management Grade / Scale (JMG/S-I) or Middle Management Grade/ Scale (MMG/S-II)

One Year

An employee of the Bank promoted as on Officer in the JMG/S-I 6 Months

An Officer appointed to any Grade other than Junior Management Grade

Such period may be decided by the Bank

Provided that the Competent Authority may, in the case of any Officer, reduce the period of probation or dispense with the probation.

CONFIRMATION

In terms of the Officers‘ Service Regulations, an Officer shall be confirmed in the services of the Bank, if, in the opinion of the Competent Authority, the Officer has satisfactorily completed his/her period of probation. The period of probation is extended if a DRO remains on loss of pay or on unauthorized absence or his/her performance is not found to be satisfactory.

TRANSFER FOR OFFICERS IN JMG/S-I TO MMG/S-III (Cir.No.BCC/BR/101/130 dated 29.04.2009)


Every Officer is liable for transfer to any Branch/ Office of the Bank in India. The Bank has a transfer policy for the Generalist Officers upto MMG/S-III. The transfers can be at the request of an Officer as well as at the Bank‘s instances after taking into consideration the business imperatives and administrative requirements.

AGE OF RETIREMENT

(Books of Instructions - Volume 13and HO/BR/92/290 dated 13.10.2000)

In terms of the present Regulations of the Bank, age of retirement of an Officer shall be 60 years. The date of retirement in case of Officers born on any day except 1st day of the month is the last day of the birth day month when the Officer turns 60. In case an Officer is born on the 1st day of any month then he/she shall retire on the close of the last day of the preceding month in which he /she turns 60.

RESIGNATION

In terms of the Bank‘s Officers Service Regulations, an Officer shall not leave or discontinue his services in the Bank without giving a notice of 3 months in writing to the competent authority of his/her intentions to leave or discontinue his services or resign.

GRADES

Officers in the nationalized Banks have been categorized into four grades and seven scales. The four grades show the broad levels of responsibility in the Officer‘s cadre.

GRADES / SCALES DESCRIPTION

Top Executive Grades (TEG/S-VI and TEG/S-VII)

The Officers in Top Executive Grade are entrusted mainly with the responsibility of policy making, review and control functions etc. some of them are posted as Zonal and Regional Heads. These Officers also hold the responsibility of functional areas in the Bank, e.g. Credit, International Banking, Planning & Development, HR etc.

Senior Management Level (SMG/S-IV and SMG/S-V)

At Senior Management Level, the Officer may hold charge of a very Large and Exceptionally Large Branch or they may also hold the position of Regional Heads or Deputy Regional Heads or give support to the Top Management.

Middle Management Level (MMG/S-II and MMG/S-III)

Officers in the Middle Management level head medium and large branches or give support to the Officers in Top/ Senior Management Grades.

Junior Management Level (JMG/S-I)

The Officers in the Junior Management level may work as Mangers of small branches or second line Officers in branches and other offices of the Bank.

Depending upon the requirements, the Bank may also appoint Specialist Officers like IT Officers, HRM Officers, Security Officers, Law Officers, Economists, Hindi Officers, etc.

SCALES OF PAY (Cir.No.BCC/BR/102/147 dated 26.05.2010)


GRADE/SCALE AMOUNT (RS)

JMG/S-I 14500 - 600/7 - 18700 - 700/2 – 20100 - 800/7 - 25700

MMG/S-II 19400 - 700/1 – 20100 - 800/10 - 28100

MMG/S-III 25700 - 800/5 – 29700 - 900/2 - 31500

SMG/S-IV 30600 - 900/4 – 34200 - 1000/2 - 36200

SMG/S-V 36200 - 1000/2 – 38200 - 1100/2 - 40400

TEG/S-VI 42000 - 1200/4 - 46800

TEG/S-VII 46800 - 1300/4 - 52000

‗Pay‘ for the purpose of Provident Fund and Pension shall mean Basic Pay, including Stagnation Increment, Professional Qualification Pay, Increment Component of Fixed Personal Pay and Officiating Allowance.

INCREMENTS


The increments specified in the Scales of Pay as detailed above shall be subject to the sanction of the Competent Authority, accrue on annual basis and shall be granted on the first day of the month in which the same falls due. Officers in Scale I and II, 1 year after reaching the maximum in their respective scales, shall be granted further increments including stagnation increment(s) in the next higher scale.

FIXED PERSONAL PAY (FPP) (Cir.No.BCC/BR/102/147 dated 26.05.2010)

Fixed Personal Pay together with House Rent Allowance shall be at the following rates and shall remain frozen for the entire period of service.

INCREMENT COMPONENT(RS.)

D.A AS ON 01.11.2007 (RS.)

TOTAL F.P.P PAYABLE WHERE BANK‟S ACCOMMODATION IS PROVIDED (RS.)

A B C

800 58 858

900 65 965

1000 72 1072

1100 79 1179

1200 86 1286

1300 94 1394

Note: (1) F.P.P as indicated in ‗C‘ above shall be payable to those Officer employees who are

provided Bank‘s accommodation. (2) F.P.P for Officers eligible for House Rent Allowance shall be ‗A‘+‘B‘ plus House Rent

Allowance payable on the last increment of the relevant scale of pay. (3) The increment component of F.P.P shall rank for superannuation benefits

INCREMENTS FOR JAIIB / CAIIB

An additional increment shall be granted in the scale of pay for passing each part of CAIIB i.e. Part- I / Junior Associate of Indian Institute of Bankers (JAIIB) and Part- II / Certified Associate of the Indian Institute of Bankers (CAIIB) Examination.


PROFESSIONAL QUALIFICATION PAY (Cir.No.BCC/BR/102/147 dated 26.05.2010)

PQP is payable to an Officer only if he/she has acquired Professional Qualification of JAIIB (CAIIB part-I) or CAIIB (CAIIB Part-II) and has completed -01- year after reaching the top of the Scale.

PQP-I (presently Rs.410/-) is payable to an Officer who has passed JAIIB/ CAIIB Part-I, after reaching the top of the Scale.

PQP-II (presently Rs.1030/-) is payable to an Officer, who has passed CAIIB Part-II, after 2 years of reaching the top of the Scale.

SCHEME FOR ENCOURAGING EMPLOYEES TO PURSUE PROFESSIONAL AND COMPUTER EDUCATION, THROUGH CORRESPONDENCE, PART-TIME AND DISTANCE LEARNING (Books of Instructions – HR)

To encourage employees to pursue Professional and Computer Education in order to create a professionally cadre of manpower in different areas like Financial Analysis, Credit, Merchant banking , Management, Information Technology etc the Bank has the above mentioned scheme.

The Scheme seeks to tap the in-house talent by encouraging the employees interested in pursuing Professional and Computer Education offered by recognized institutes of repute. The Scheme is divided into three parts: Part – I : Grant of Educational Loan for financing the course to be Pursued Part- II : Reimbursement of Course Fees, on successful completion of the

course Part- III : Awarding of cash incentives, on successful completion of the course

DEARNESS ALLOWANCE


The Dearness Allowance is based on the Index figures published in the Gazette of India / Indian labour Journal circulated through the Indian Bank‘s Association. The calculation and revision of DA is done on quarterly basis for every rise or fall of 4 points over as per index figure and the change in DA is made effective from May, August, November and February. DA is payable on basic pay, Professional Qualification Pay, Officiating Pay if any.

Note:

On and from 01.11.2007, DA shall be payable for every rise or fall of four points over 2836 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960=100 at 0.15% of Pay.

ACCOMMODATION & FURNITURE

(Cir.No.BCC/BR/99/335 dated 03.11.2007 and Cir.No. BCC/BR/102/147 dated 26.05.2010)


In terms of the Officers‘ Service Regulation, no Officer shall claim residential accommodation from the Bank as a matter of right. However, the Bank, at certain centers, is having accommodations of its own either leased ones or otherwise, which are allotted to Officers. Whenever an Officer is provided with residential accommodation by the Bank, house rent recovery shall be @ 1.20% of the first stage of the scale of pay in which the Officer is placed or the standard rent for the accommodation, whichever is less. However, where such residential accommodation is provided by the Bank, the charges of water, electricity, gas etc are to be borne by the Officer.

Whenever the Bank is not able to provide residential accommodation, the officer is entitled to acquire housing accommodation on personal lease on monthly tenancy for which rent entitlement inclusive of taxes is as under:

TYPE OF AREA JMG/S-I MMG/S-II MMG/S-III

Mumbai / Delhi 12000 13000 13000

Other Major ‗A‘ Class Cities

10000 11000 11000

TYPE OF AREA JMG/S-I MMG/S-II MMG/S-III

Area I 8000 8500 8500

Area II 4500 5000 5000

Others 3500 4000 4000

Note: Brokerage equivalent to one month rent entitlement shall be reimbursed to Officer / Executive at Major ‗A‘ Class cities and Area-I acquiring fresh accommodation on production of receipt.

Brokerage charges equivalent to one month‘s rent entitlement, at all Major ―A‖ Class cities, Area-I Centres, is reimbursable only once during the posting of an Officer in a particular place/centre against submission of receipt. [Ref :: BCC:HRM:104/H-5/9529 dated 11/09/2012]

HOUSE RENT ALLOWANCE (Cir.No.BCC/BR/102/147 dated 26.05.2010) The Officers who do not stay in Bank‘s accommodation or do not acquire accommodation on lease, House rent allowance shall be paid at the following rates:

SR.NO.

PLACE OF WORK RATES OF HRA

1 Major ‗A‘ Class Cities and Project Area Centers in Group ‗A‘ (Ahmedabad, Bangalore, Mumbai, Delhi, Chennai, Calcutta & Hyderabad)

8.5% of Pay

2 Other places in Area I and Project Area Centers in Group ‗B‘ (Place with population more than 12 lakhs)

7.5 % of Pay

3 Other Places (All other places which are not included in Major A 6.5 % of Pay


and Area I)

HOUSE MAINTENANCE EXPENSES (Amount in Rs.)

PARTICULARS JMG/S-I

MMG/S-II

MMG/S-III

SMG/S-IV

SMG/S-V

SMG/S-VI

SMG/S-VII

Bank‘s Accommodation (BCC/BR/100/26 dated 31.01.2008) 500 600 700 1200 1200 1500 1500

Leased Accommodation (BCC/BR/101/53 dated 13.02.2009)

300 400 400 500 500 600 600

Staying on Own accommodation(BCC:BR:103/366dated30/12/11)wef01-01-12

200 300 300 400 500 500 600

ELGIBILITY FOR FURNITURE (Amount in Rs.)

PARTICULARS JMG/S-I

MMG/S-II

MMG/S-III

SMG/S-IV

SMG/S-V

SMG/S-VI

SMG/S-VII

Bank‘s Accommodation

70,000 90,000 2,50,000

3,00,000

Furnishing at Bank‘s Instance

Other Accommodation

40,000 60,000 80,000

Note:

Furniture rent recovery shall be @ 0.25% of the first stage of the scale of pay in which the Officer is placed.

At the time of ceasing to be in service of the Bank on account of superannuation or on promotion to Scale IV, officer will have to purchase furniture on written down book value.

(Ref: BCC:BR:103:365 dated 30th December,2011)

CITY COMPENSATORY ALLOWANCE (CCA) (Cir.No.BCC/BR/102/147 dated 26.05.2010)

The objective behind the payment of city compensatory allowance is to compensate the employees for the high cost of living in the bigger cities. Rates of CCA are as under:-

SR NO

PLACES RATES

1. Places in Area I and in the State of Goa 4% of Basic Pay subject to a maximum of Rs. 540/- per month

2. Places with population of five lakhs and over and State Capitals and Chandigarh,

3% of Basic Pay subject to a maximum of Rs. 375/- per


Pondicherry and Port Blair, not covered by (a) above.

month.

MID ACADEMIC YEAR TRANFER ALLOWANCE (Cir.No.BCC/BR/102/147 dated 26.05.2010)

If an Officer is transferred from one place to another in the midst of an academic year and if he has one or more children studying in school or college, in the former place, he is entitled to Mid-Academic Year Transfer allowance of Rs. 700/- p.m. from the date he reports to the latter place upto the end of the academic year in respect of all the children, provided that such allowance shall cease if all the children cease studying at the former place.

DEPUTATION ALLOWANCE


If an officer is posted on deputation to another organization, deputation allowance is payable at the following rates:

a) An Officer deputed to serve outside the bank, 7.5% of pay with a maximum of Rs. 2,300/- p.m.

b) An Officer deputed to an organization at the same place or to the training establishment of the bank, 4% of pay with a maximum of 1,200/- p.m.

OFFICIATING ALLOWANCE

If an officer is required to officiate in higher grade/scale for continuous period of not less than 7 days at a time or an aggravate of 7 days during a calendar month, he is entitled for an officiating allowance equal to 6% of his pay for the period for which he officiates. Official Allowance will rank as pay for the purpose of Provident Fund and not for other purposes.

HALTING ALLOWANCE/BOARDING EXPENSES


The Halting allowance is a payment made to an Officer in addition to other emoluments for any day during which he is away from headquarters on duty to cover the ordinary daily expenses incurred by him. Officers are paid halting allowances as per the details given herein below: (Amount in Rs.)

GRADES/SCALES OF OFFICERS MAJOR „A‟ CLASS CITIES

AREA 1

OTHER PLACES

Officers in Scale IV and above 1000 800 700

Officers in Scale I,II and III 800 700 600

In the case of 4 Metro Centres, viz. Mumbai, Delhi, Kolkata & Chennai, Halting Allowance to Officers in Scale IV and above shall be Rs.1200/- per diem and for Officers in Scale I, II and III it shall be Rs.1000/-

An Officer is entitled to ‗per diem‘ Boarding Expenses at the following rates:

Note:-

For the purpose of computing Halting Allowance, per diem means each period of 24 hours or any subsequent part thereof.


SR.NO. PARTICULARS HALTING ALLOWANCE

1. Total absence is less than 04 hours NIL

2. Total absence is greater than 4 hrs but less than 8 hours

½ Halting Allowance

3. Absence is greater than 8 hours Full Halting Allowance

4. Lodging is provided as place of halting 3/4th Halting Allowance

5. Free boarding is provided at place of halt ½ Halting Allowance

6. Free lodging & boarding is provided ¼ Halting Allowance

Note :

In the event of the Officer claiming boarding expenses on declaration basis without production of bills for actual expenses incurred, he shall be paid boarding expenses upto the limits stipulated for boarding charges and in such cases no Halting Allowance shall be payable.

LODGING EXPENSES (Cir.No. BCC/BR/100/248 dated 01.09.2008)

As per the Officer‘s Service Regulations, Officer is reimbursed the actual hotel expenses, restricting to single room accommodation charges in ITDC hotels of the corresponding star category. The details of entitlement as per the scales are given herein below:

Grade of Officers Eligibility in ITDC Hotels

Max. Room Tariff Permissible (excluding taxes)

Major „A‟ Class Cities

Area I Other Places

(Rs) (Rs) (Rs)

Top Executive Grade/ Scale VI & VII

4* Hotel 7800** 4400 4000

Senior Management Grade/ Scale IV & V

3* Hotel 5000** 3400 3000

Middle Management Grade/ Scale II&III

2* Hotel (Non-AC) 3400 2600 2200

Junior Management Grade/ Scale I

1* Hotel (Non-AC) 2600 2200 1800

** In respect of New Delhi, Kolkatta, Mumbai, Chennai, Bangalore, Hyderabad, executives may be reimbursed actual lodging expenses, maximum to the extent of 150% of the applicable ceilings for major A classes cities. Major ‗A‘ Class Cities : Mumbai, Kolkatta, Delhi, Chennai, Ahmedabad, Bangalore and Hyderabad. Area – I Centres : Agra, Bhopal, Coimbatore, Indore, Jaipur, Kanpur, Kochi, Lucknow, Nagpur, Patna, Pune, Surat, Vadodara, Varanasi and Vishakapatnam. (Area – I: centres having population of above 12 lakhs as per Census 2001)


REIMBURSEMENT OF CONVEYANCE EXPENSES ON TRAINING (Cir.No. BCC/BR/102/168 dated 22.06.2010)

Employee (workmen and non-workmen) deputed for non-residential training be reimbursed conveyance charges at the rate of Rs. 125/- per working day at Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Ahmedabad, Bangalore and at the rate of Rs. 75/- per working day at other centers. The aforesaid scheme also covers the officers who are deputed for non-residential training organized by other institution/organizations, as well as those who attend seminars and workshops as participants. Employees deputed for Residential Training Centers are not entitled for this facility.

LEAVE

All kinds of leave are credited on 1st January every year. An officer is eligible for the following kinds of leave which he can avail subject to sanction of competent authority. Casual Leave (C/L) An officer is eligible for 12 days C/L in a calendar year. During first calendar year of service, an officer is eligible for Casual Leave on pro-rata basis even if he is confirmed in the first calendar year itself, at the rate of one day for each month or part thereof.

Casual Leave not availed during a particular calendar year, will be treated as Unavailed Casual Leave and the same can be accumulated to be availed in the following three years otherwise the same shall lapse. Privilege Leave(P/L) One day for every 11 days of work can be accumulated upto 240 days. An officer is required to submit the P/L application to the competent authority well in advance i.e at least one month prior to his availing the same for considering sanction of the same.

Sick Leave 30 days of leave on half pay for each completed year of service can be accumulated maximum upto 540 days in the entire service.

Additional Sick Leave

Available after completion of 24 years of service @ one month for each year of service in excess of 24 years (Maximum – 3 months)

Maternity Leave Upto 6 months at a time. Not more than 12 months in the entire period of service.

Extra-ordinary Leave An officer shall be eligible for extra-ordinary leave on loss of pay for not more than 360 days during the entire period of service. Such leave may not be availed of except for sufficient reasons on more than 90 days at a time.

Provided that in very special circumstances, the Board may grant extra-ordinary leave on loss of pay to an officer up to a total period of 720 days.

COMPENSATORY OFF : [Cir.No.BCC:BR:97/352 dated 14-12-2005]

As the name suggests the facility of compensatory off to officers is granted with the intention to compensate officers with an off day in lieu of their having to work on a weekly


off day/holiday on account of inevitable work exigencies. Off late, it has been observed that at many places, compensatory off is being accumulated so that the same can be availed in one lot or in conjunction with other types of leave.

This sort of accumulation and availment in one lot leads to prolonged absence of the officers from work which has repercussions on smooth functioning and requires the management to make alternate/substitute arrangements which disturbs the smooth work processes. This is avoidable to a large extent if the compensatory off is availed at the earliest possible opportunity instead of being accumulated.

Further, the intention behind the concept of compensatory off is to grant a day off in lieu of working on a holiday. Hence, it is supposed to be availed on a single day availment basis within the earliest possible opportunity so that workflow at the branch/office is not affected and also does not result in other unnecessary adjustments.

It has therefore been decided that in supercession of the earlier guidelines, the following revised guidelines need be observed for grant of/availment of compensatory off to officers in Scale-I, Scale-II & Scale-III in lieu of their working on a weekly off day/holiday as under :-

1. Compensatory off should be availed by any officer [Scales-I, II & III] within a maximum of one month after which the same shall stand lapsed.

2. It must be availed only on a stand-alone basis and is not to be availed in one lot or in conjunction with any other type of leave/joining time.

3. Compensatory off will be granted only when full day‘s work is put in by the Officer and not for attending office/working for only a part of the day.

4. No compensatory off will be admissible for attending official meetings/ conferences/trainings/attending interviews or other selection procedures, etc.

5. Availment of compensatory off is subject to permission from the Competent Authority depending upon work exigencies/ requirements.

6. As decided hitherto, sanctioning authority for compensatory off shall be an Executive in Scale-IV or above only. [For officers in Small, Medium or Large branches – Regional Head; for officers in Very Large branches and above – Branch Head; for Officers in Administrative Offices – Executive not below the rank of Chief Manager.]

7. Compensatory off to be granted by the sanctioning authority only after it is duly recommended by the reporting authority giving details and the specific reasons for calling the officer on the weekly off day/ holiday.

Sabbatical Leave women employee of our bank (BCC/BR/104/132 dated 19.04.2012) All full time women staff members working in India with minimum five years of service in the bank are eligible for sabbatical leave for any purpose like medical grounds,care of family members, higher studies etc maximum period for two years.The leave shall be taken for a period of atleast three months at a time and shall not be taken more than once in a year, subject to some term and conditions.

MANDATORY LEAVE POLICY (BCC/BR/105/21 dated 18.01.2013)

Accumulation of P/L beyond 240days due to administrative exigencies may be allowed to staff membersfor a maximum period of six months and not more than three months at a time.


If employee is recalled on duty, the remaining days shall be allowed afterwards, during the year.

Mandatory leave shall be taken within permissible three occasions during a calendar year.

Employee who not availed leave shall be advised by HRM department to proceed on Mandatory leave for minimum ten days continuously during the year.

Staff members should plan their leave well in advance with consultation with Branch/Deptt. Head.

REIMBURSEMENT OF INCIDENTAL OUT OF POCKET EXPENSES TO OFFICERS WHO REQUIRED TO ATTEND DUTY ON SUNDAYS AND HOLIDAYS. (BCC/BR/104/342 dated 22.10.2012)

Incidental out of pocket expenses will be reimbursed to officers and executives who required to attend duty on Sundays or Holidays on declaration basis.

For Metro/urban branches Rs.250/- per day maximum 10 days in a calendar year. For Rural/Semi-Urban branches rs.200/- per day maximum 20 days in a calendar

year. The above ceiling will not applicable in case of Branch Heads. It must be ensured that minimum period of work to be put on weekly off/holidays due

to unavoidable work exigencies would be minimum four hours.

TRAVELLING ALLOWANCE ON TRANSFER

In terms of the Officers‘ Service Regulations, an Officer is eligible for the following facilities:

1. An Officer on transfer and the members of his family will be eligible to travel to the place of posting by the same mode of travel and class of accommodation, as in the case of travel on tour by the Officer.

2. An Officer on transfer is eligible for reimbursement of expenses for transporting the household goods by goods train up to the following limits:

SCALE OF PAY RANGE WHERE THE OFFICER HAS FAMILY

WHERE THE OFFICER HAS NO FAMILY

Rs. 10,000/- per month to Rs. 13,820/- per month

3000 Kgs. 1500 Kgs.

Rs. 13,821/- per month and above

Full wagon (6000 kgs)

2500 Kgs.

If an officer on transfer transports his household goods by approved transport operator, the Officer will be paid at the following rates:

DISTANCE IN KMS RATES PER TONNE PER KM

Upto 2000 KMs Rs. 2.80

Beyond 2000 KMs Rs. 1.40

An Officer who owns a car and/or scooter, motor cycle or any other vehicle, will be eligible to claim the cost of transportation. If the vehicle is driven by road, the Officer will be eligible to claim at the following rates:


TYPE OF VEHICLES REIMBURSEMENT RATE PER KM. (RS)

Four wheeler – Engine capacity of 1000 cc or more 9.00

Four wheeler – Engine capacity of less than 1000 cc 7.00

Motor Cycle and Scooter 4.50

Mopeds 3.00

An Officer on transfer will be eligible to claim a lumpsum amount as indicated below for incidental expenses connected with packing, local transportation, insuring the goods/baggage, etc:(Cir.No.BCC/BR/101/30 dated 29.04.2009)

GRADE REIMBURSEMENT LIMIT PER ANNUM

Top Executive and Senior Management Rs. 20,000/-

Middle Management and Junior Management Rs. 15000/-

Mode of Transport for Travel on Duty or Leave Travel Concession (LTC)

SCALE JMG/S-I MMG/S-II MMG/S-III SMG/S-IV

SMG/S-V TEG/S-VI

TEG/S-VII

Travel Expenses

IInd AC IInd AC/AIR*

IInd AC/AIR*

Ist AC/AIR

Ist AC/AIR

Ist AC/AIR

Ist AC/AIR

Travel by Air is permissible to officers in MMG/S – II & MMG/S-III only if the distance to travel is more than 1000 Km. Officers in Senior Management and Top Executive Grade may travel by car between places not covered by air or rail if the distance <500 KMs. If major part can be covered by rail or air, the remaining distance only be covered by car.

All Air Travel is undertaken by economy class only.

New Initiatives under “ Project Sparsh”

Launch of Baroda Academy (BCC/BR/104/363 dated 19.10.2012) The entire training and development initiative of the Bank is being positioned under the umbrella ― Baroda Academy‖. Some of the key initiatives under Baroda Academy are: Publication of a comprehensive annual training calendar Introduction of self nomination as an additional channel of training nominations Introduction of minimum 50 training credits( 5 training days annually) for all officers

upto scale-VI Introduction of tests at the end of every training programme Enhancement of course content

Inauguration of HR Shared Services Pilot Back Office at Baroda and Launch of Bank‟s Career Portal (BCC/BR/105/56 dated 14.02.2013)


HR Shared service back office: This back office will be a central processing cell for all HR claims, reimbursements and staff loans processing.

Bank‘s Career portal : Branded with the theme ― FIRST‖ , which is an acronym that stands for :-

F - Focused on employees I - India‘s International Bank R - Range of opportunities S – State of the art T – Team that wins

Leave Travel Concession (LTC)

4 years Block – Travel to place of Domicile once in each block of 2 years. Alternatively, one Block of 2 years to place of domicile and another 2 years Block to any place in India by shortest route.

Alternative Option for Encashment of LTC

Option to surrender and encash LTC of 4 years or 2 years block (other than to place of domicile) – shall be entitled to receive an amount equivalent to 75% of the eligible fare for the class of travel by train up to a distance of 4500 KMs (one way) for JMG/S-I to MMG/S-III officers and 5500 KMs (one way) for SMG/S-IV to TEG/S-VII Executives.

The mode and class by which an Officer may avail of Leave Travel Concession shall be the same as the Officer is normally entitled to travel on transfer and other terms and conditions subject to which the Leave Travel Concession may be availed of by an Officer, shall be as decided by the Board from time-to-time. Provided that w.e.f. 01/05/2010 an Officer in JMG/S-I while availing LTC will be entitled to travel by air in the lowest fare economy class in which case the reimbursement will be the actual fare or the fare applicable to AC 1st Class fare by train for the distance travelled whichever is less. The same rules shall apply when an Officer in MMG/S-II and MMG/S-III while availing LTC where the distance is less than 1000 kms. “Family” includes officer‘s spouse, wholly dependent unmarried children (including dependent‘s step children and legally adopted children) and wholly dependent parents residing with and wholly dependent on the officer. Wholly dependent child/parent shall mean one whose monthly income does not exceed Rs. 3500/- p.m. If the income of one of the parents exceeds Rs.3500/- pm or the aggregate income of both the parents exceeds Rs.3500/- pm, both the parents shall not be considered as wholly dependent on the Officer.

MEDICAL FACILITES: HOSPITALIZATION EXPENSES

As per the Service Conditions, an Officer is eligible for reimbursement of medical expenses actually incurred on hospitalization in respect of himself and his family on the following basis:

For Self 100% of the expenditure or the specified limit for particular item whichever is lower

For Family members 75% of the expenditure or the specified limit for particular item whichever is lower


Walk-in Walk-out Medical Facility

For facilitating medical treatment, the Bank has entered into tie up arrangement with hospitals, mainly at Zonal Head Quarters, under ―Walk-in Walk-out‖ facility. Under this facility, an Officer who goes to one of the designated hospital with an authority letter from the Bank is not required to make any payment in the hospital till he/she is discharged. The bills are subsequently settled by the bank.

Domiciliary Treatment (Cir.No.BCC/BR/102/147 dated 26.05.2010)

Limit of medical aid (Domiciliary) on the strength of the Officer‘s own declaration of having incurred such expenditure per year (Calendar Year):

GRADE REIMBURSEMENT LIMIT P.A.

Junior Management and Middle Management Grade

Rs. 5100/-

Senior Management and Top Executive Grade Rs. 6320/-

An Officer may be allowed to accumulate unavailed medical aid so as not to exceed at any time 3 times the maximum amount of annual entitlement as provided in the aforesaid chart.

REIMBURSEMENT OF FEES FOR ACQUIRING HIGHER QUALIFICATIONS

The Bank permits the officer for undertaking various courses for acquiring knowledge and sharpening the skill and reimburses fees and gives incentives for the same.

SILVER SALVER & MEMENTO

ELIGIBILITY TYPE OF FELICITATION

Completion of 25 years of service Silver Salver

On superannuation Silver Memento

FACILITY OF NEWSPAPER BOOKS

SCALE JMG/S-I

MMG/S-II

MMG/S-III

SMG/S-IV

SMG/S-V

TEG/S-VI

TEG/S-VII

Eligibility 1 Newspaper & Books 3 Newspaper, 3 Periodicals & Books

Reimbursement of Books, Newspapers, Periodicals

2800 3300 3800 11500 11500 12000 14000

Claimed on annual (Financial Year) basis on self declaration

REIMBURSEMENT OF CONVEYANCE EXPENSES

Officers who do not own a vehicle, can claim at following rate on declaration basis:-


SCALES ALL AREAS

LIMIT IN RS

SMG/S-IV 600

MMG/S-III 500

MMG/S-II 400

JMG/S-I 350

Officers who own a vehicle at place of posting can claim conveyance expenses on declaration basis for the fuel at the following rates:-

FOUR WHEELER

AREA WHERE THE OFFICER IS POSTED

MAJOR A CLASS CITIES

AREA-I

AREA-II

AREA-III

SMG/S-IV 75 75 50 50

MMG/S-III 70 60 50 40

MMG/S-II 35 30 25 20

JMG/S-I 35 30 25 20

Two Wheeler

For all categories mentioned above 35 30 25 20

KIT ALLOWANCE


Kit allowance can be claimed on declaration basis by the Branch Head at the following rates:

SCALE JMG/S-I MMG/S-II MMG/S-III SMG/S-IV SMG/S-V

Branch Heads at Metro Centers

Rs.5000/- p.a

Branch Heads at Urban Centers

Rs.3500/- p.a

Branch Heads at Rural / Semi-urban Centers.

Rs.2000/- p.a

However officers in Top Executive Grade/ Scale – VI & VII irrespective of their posting are eligible to claim kit allowance on declaration basis at the following rates: TEG/S-VI Rs.15000/- p.a TEG/S-VII Rs.20000/- p.a

Reimbursement of Personal Driver‟s Salary to Executives. [Cir.No.BCC:HRM:99/B-7/7/85 dt.02/08-08-2007] [1] Revised limits effective from 20-07- 2007. [2] Executives who are provided with Bank‘s Car

and permitted by the Bank or eligible to

Mumbai & New Delhi

Rs.8000/-

‗A‘ Class Cities / Area-I Centers & State Capitals

Rs.6700/-


engage personal Driver. [3] For outstation duty/overnight stay/stay beyond

10.00 pm is warranted, reimbursement of Rs.100/- per day with a cap of Rs.800/- p.m. towards food to Personal Driver.

Other Centers Rs.6000/-

PROVISION FOR BRIEF CASE/ CROCKERY/ ATTACHE * Brief Case

SCALE JMG/S-I

MMG/S-II

MMG/S-III

SMG/S-IV

SMG/S-V

TEG/S-VI

TEG/S-VII

Briefcase once in 2 years upto SMG/S-V & every year to TEG/S-VI & TEG/S-VII

1500 1500 1500 2000 2000 3000 3500

* Executive attache once in 3 years 4000 4000 5000 5000

* Crockery once in 2 years for Scale-IV & every year for other executives

2000 3000 4000 5000

ENTERTAINMENT EXPENSES (IN RS. PER ANNUM) (Cir.No.BCC/BR/102/169 dated 22.06.2010)

SCALE JMG/S-I

MMG/S-II

MMG/S-III

SMG/S-IV

SMG/S-V

TEG/S-VI

TEG/S-VII

Branches S/M/L

4600 5200 5800 7300 7300 16500 16500

Branches VL/EL

4600 5200 6400 7300 7300 16500 16500

Branch Head

5200 5800 6400 7300 7300 16500 16500

Admin Office

4600 5200 5800 7300 7300 16500 16500

CANTEEN FACILITY (IN RS. PER DAY)

SCALE JMG/S-I MMG/S-II MMG/S-III

SMG/S-IV

SMG/S-V

TEG/S-VI

TEG/S-VII

Canteen Facility (Rs. Per Day)

10 10 10 10 10 10 10

DEATH IN HARNESS & EX-GRATIA SCHEME

In an officer dies in harness his/her dependant is paid Rs.50,000/- by the Bank to meet with immediate expenses connected with last rites etc. Subsequently, ex-gratia payment upto


Rs.8.00 lac is given if the monthly income of the family from all sources is less than 60% of the last drawn salary.

LOAN AND ADVANCES

Festival Advances

All confirmed Officers in the Bank‘s services are entitled to avail interest-free festival advances of Rs.30,000/- or one month salary whichever is lower and the same is required to be repaid in 10 equal monthly installments

Overdraft Facility / Demand Loans

An Officer who is confirmed in the Bank‘s services is entitled to avail the facility of overdraft. The maximum limit of it is Rs.5/- lacs which depends on the period of service of the Officer. Those who want to avail purpose specific demand loans may avail the same instead of overdraft facility.

HOUSING LOAN


TYPE OF LOANS AMOUNT OF LOAN

For construction /Purchase of house Rs.20 lacs

For Repairs / Renovations / Enlargements of the existing premises

Rs.4 lacs

VEHICLE LOAN (Cir.No.BCC/BR/102/38 dated 04.02.2010)

TYPE OF LOANS

AMOUNT OF LOAN

Two wheeler loan 90 % of the cost of two wheeler subject to a maximum of Rs.90,000/-

Four wheeler loans

80 % of the cost of motor car subject to a maximum of Rs.7,00,000/-

OTHER FACILITIES

1. Holiday Homes The bank has made arrangements of holiday homes at major tourist centres viz.Shimla,

Manali, New Delhi, Katra, Dalhousie, Ooty, Kodaikanal, Kanyakumari, Tirupati, Chennai, Bangalore, Darjeeling, gangtok, Kolkata, Lonavala, Mahabaleshwar, Nasik, Ganpatipule, Shirdi, Aurangabad, Panaji, Mumbai, Diu, Saputara, Mount Abu, Nathdwara, Jaipur, Udaipur, Agra, Haridwar, Varanasi, Bhubaneshwar, Puri, Nainital and Lucknow. The officer has to make payment of Rs.20/- per day of the room. 2. Contributory Medical Assistance Scheme for Retired Employees


Staff members retiring from Bank‘s service can be member of the Scheme by paying subscription amount equivalent to 50 % of the last drawn basic pay. Subscription is to be paid at the time of retirement and only once.

The reimbursement of expenses to the members is as under:

PARTICULARS FINANCIAL CEILINGS

Domiciliary Expenses Rs.1000/- p.a., Rs.1500/- p.a & Rs.2000/- p.a depending upon pay at the time of retirement.

Hospitalization Expenses

The limit of employees upto SMG/S-V is Rs.2 lacs and Rs.2.5 lacs for DGM and above.

TERMINAL BENEFITS

Gratuity

Gratuity is payable to employees of Banks on cessation from Bank‘s service by way of retirement, voluntary retirement, resignation, etc, subject to other terms and conditions. Gratuity entitlements are calculated under -03- different schemes and the amount that is most beneficial is paid to the employees.

As per Payment of Gratuity Act

If an employee has rendered continuous service for not less than 5 years , he is eligible to receive gratuity on :-

1. His superannuation 2. His voluntary retirement or 3. On resignation 4. on his death, disablement due to accident or disease.

Maximum amount payable is Rs.10,00,000/- when payment is made as per the provisions of the Payment of Gratuity Act.

As per Gratuity Fund Rules and Regulations :-

a) On the death of an executive / officer while in service of the Bank or on his becoming physically or mentally disabled to continue further in the service of the Bank.

b) On superannuation or on termination of his services by the Bank in any other way except by way of punishment.

c) On voluntary retirement after 20 years of services / or resignation after 5 years of continuous of services.

Officers / Executives – One month‘s pay for every completed year of services subject to 15 months pay. Any period in excess of six months is reckoned as one complete year of services. If he has put in service of more than -30- years and he opts not to receive Additional Retirement Benefits, additional amount at the rate of one-half of a month‘s pay for each completed year beyond -30- years.

When payment is made as per the provisions of Gratuity Fund Rules / BOBOSR 1979/ Awards- Bipartite Settlements, amount can be paid in excess of Rs.10 lacs but payment beyond Rs.10 lacs is taxable in the hands of the beneficiary.


As per BOBOSR-1979 :-

a) Retirement b) Death c) Disablement rendering him unfit for further service as certified by a medical officer

approved by the Bank. d) Resignation after completing ten years of continuous service e) Termination of service in any other way except by way of punishment after -10-

years of services.

One month‘s pay for every completed year of services subject to 15 months pay. For any period in excess of six months, gratuity will be paid pro rata.

Pension


The terms of the Bank employees‘ Pension Regulation, 1995 dated 29th September 1995/26th March 1996 shall not apply to the officers who joined the services of the Banks on or after 1st April 2010 and they shall be covered by a Defined Contributory Pension Scheme, which shall be governed by the provisions of the contributory Pension Scheme introduced for Officers of Central Government w.e.f. 1st January 2004 and as modified from time to time.

Provident Fund


As per the BOBOSR-1979, every Officer shall become a member of the Provident Fund constituted by the Bank, which is managed by a Trust.

An Officer who is member of the Provident Fund is required to contribute 10% of his Basic Pay per month towards the Provident Fund and matching contribution is made by the Bank.

There shall be no Provident Fund to Officers joining the services of banks on or after 1st April 2010. They shall be covered by a Defined Contributory Pension Scheme, where the Officer will contribute 10 % pay plus Dearness Allowance and the Bank will make a matching contribution. The Scheme shall be governed by the provisions of the Contributory Pension Scheme as introduced for employees of Central Government w.e.f. 1st January 2004 and modified from time to time.

Additional Retirement Benefits

An Officer, who was in Bank‘s services as on 01.07.1979, on retirement / voluntary retirement, will get -06- month‘s emoluments as additional / retirement benefit if he has rendered at least -25- years of services.

OVERSEAS POSTING


Our Bank has one of the largest overseas presences amongst Indian Banks and the network is being further expanded with every year. The Bank provides substantial


opportunities to our best officers to get an overseas posting and thereby reap the benefits and experience of overseas exposure.

PROVIDING FACILITIES OF MOBILE PHONE SET & REIMBURSEMENT OF OUT OF POCKET EXPENSES TO REGIONAL MARKETING / SALES OFFICERS (Letter No. BCC/HRM/99/T-3/8575 dated 19.09.2007)

These facilities of Rs. 1500/- p.m are provided but these are not entitlement. These have been extended to facilitate marketing / selling of Bank‘s products. These facilities are extended to Zonal / Regional Marketing Managers only in order to facilitate marketing efforts. Marketing Officers recruited on contract may be also be provided the facilities.

TRAINING ESTABLISHMENTS

The Bank has -13- Regional Training Centers across India. Apart from that there is a Bank of Baroda Institute for Information Technology (BOBIIT) at Gandhinagar for IT related Training. All the training activities are governed by Staff College, Ahmedabad.

HRNES

Bank has implemented Human Resource Networking for Employees Service with the objective of creating a central database of its employees to facilitate decision making, promotion and selection exercise as also to automate other HR processes. HRnes-HRMS can be accessed at http://ebizapp.bankofbaroda.co.in:8004/

PAYROLL

In Payroll, Salary module, e-TDS modules have been implemented for all Domestic offices. Leave module has also been launched where employees are provided with the functionality of self service. Payroll can be accessed at http://hrnespay.bankofbaroda.co.in/powerapps/login.aspx

BANK‟S INTRANET ( Knowledge Management Portal)

The Bank‘s Intranet serves as a platform for the employees to interact with the each other as also get updated on the various new circulars, news, updates of the Bank, Book of Instructions, Baroda e-Learning, and Discussion Forum.

Bank‘s Intranet can be accessed at https://intranet.bankofbaroda.co.in

FINACLE

The software used by the Bank to enter various Financial & Non Financial transactions in the Finacle is developed by Infosys.

The Finacle can be accessed at http://portal.bankofbaroda.co.in:8082/BOBIND/

Each user is given a separate User Id and this Finacle User Id becomes the default User Id for HRnes-HRMS and Payroll system. To generate a Finacle Id the user should : Download User Creation/ Modification Request Form (UCMR) available on the

Finacle Home Page.

https://intranet.bankofbaroda.co.in/

http://portal.bankofbaroda.co.in:8082/BOBIND


Fill in the requisite details and get authenticated by the Branch Manager and Fax the UCMR Form along with the appointment letter of the new user to FAX NO.022-66983064

The Finacle ID is created within a couple of days and once it is generated the same becomes the default Id for HRnes-HRMS and Payroll System.

IMPORTANT LINKS

To Give any suggestions/ feedbacks in HR issues : [email protected] To Give any general suggestions/ feedbacks : [email protected] To Give any creative/ innovative ideas :

[email protected] To Give any idea related to Business Process Re-engineering activities:

[email protected]

mailto:[email protected]





Annexure 1 SALIENT FEATURES OF NEW POLICY FOR SELECTION OF OFFICERS FOR OVERSEAS POSTING

(Ref:Circular no. BCC:BR:101:206 dated 16.07.2009 & BCC/BR/104/321 dated 14.09.2012)

Objective :To put in place a transparent, objective, pragmatic selection policy for identifying India-based officers (IBOs) for placement in Overseas Branches/Offices, Subsidiaries and Joint Ventures. 1. Eligibility Criteria (for officers in Scale-I to Scale-IV) :

(i) Age : JMG/S-I : Max. 35 years MMG/S-II : Max. 45 years MMG/S-III : Max. 50 years SMG/S-IV : Max. 53 years SMG/S-V : Not more than 56 years For Dealers : Max. 45 years

(ii) Minimum work experience : JMG/S-I : 2 years MMG/S-II : 3 years (in the respective MMG/S-III : 4 years functional area) SMG/S-IV : 5 years SMG/S-V : 5 years 2. Processes for Identification (For Scales I-IV) : Determination of vacancies in June. This will be done keeping in view the repatriation of IBOs in next 1 year upto June, manpower requirements for International expansion plan and an additional 10% of the existing strength in the major functional areas.

3. Creation of a Selection Pool : In this phase, identifying potential candidates who can be groomed to take up challenging assignments in the International Arena of the bank‘s Operations. A ready pool of candidates shall be identified and kept ready at all times in each of the selection areas specified in the ratio of 1:3.

A selection exercise will be conducted every year to identify fresh people in the pool so as to maintain the ration of 1:3.

4. Procedure for identification to the pool: Eligible applicants at the Regional level would be arranged based on EPRF score for the last 5 years. Only those officers who have scored 80 and above would be considered for selection. The profiles of all the eligible applicants would be subjected to further scrutiny of their experience/ exposure and performance in the specific area by a committee/s of 3 General Managers for identification for the pool.

5. Grooming and Testing: All officers in the selection pool will be required to undergo a function/ area-specific written test. However, before such test, they would be groomed in a particular functional area for 1 week. While undergoing this training, they shall also be put


through a series of tests, viz. Psychometric tests, Role-plays/ Group Discussions, Presentations and an area-specific Written test.

6. Final Selection: Final selection will be done after taking Personal Interview.

7. Tenure of Posting: The tenure of posting of an Officer (IBO) in the Bank‘s overseas territories shall be for a period of 3 years and the tenure of posting for a ―Trainee Officer‖ (IBTO) shall be for a period upto 24 months.

8. Repeat Tenure : Officers posted in money centres like London, New York, Brussels, Singapore, etc., who have proved their mettle and have been excellent performers during their overseas tenure may be considered for a second tenure either in the same territory, subject to the immigration rules of the host country or in any other money centre, as per requirements of the Bank.

9. Cooling Period : Apart from such officers, all other officers will require 2 years cooling period before considering for a 2nd/ subsequent tenure at overseas locations.

An officer can be recalled back at any time before completion of his normal tenure on account of unsatisfactory performance/conduct or due to any vigilance/ non-vigilance matters against him.

10. Execution of Bond: Candidates selected for overseas assignments will have to execute a Bond, thereby undertaking to work for the bank for a minimum of 5 years after their repatriation to India or pay the Bank Rs.10/- lacs in lieu thereof.

Trainee officers shall have to execute a Bond requiring them to serve the Bank for a minimum of 3 years after their repatriation to India or pay the Bank Rs.5/- lacs in lieu thereof.

11. Leased accommodation in India: An India-based officer, posted overseas, shall have the option of leaving his family behind in view of academic or other reasons, in which case, he/she shall be eligible for a studio/ bachelors apartment or shared accommodation in the respective overseas centre where he/she is posted. He shall however be eligible for leased accommodation for keeping his family at any place in India as per the limits applicable at the last place of his/her posting in India, subject to rent recovery as per rules.

12. Resignation: Resignation submitted by an officer while he/she is posted abroad, shall not be accepted. The officer shall have to come back to India and report to his place of posting and thereafter submit his/her resignation.


Test Your Understanding:

1. Probation period for Direct appointed Officers in scale-I is

a) 6 Months b) 2 years c) Such period may be decided by the Bank d) One year e) 9 Months

2. Under fast track channel an officer is eligible for promotion to scale-II in…….years.

a) 5 years b) 2 years c) 3 years d) 6 Months e) None of these

3. One officer‘s date of birth is 01.03.1956 , he shall retire on a) 31.03.2016 b) 01.04.2016 c) 29.02.2016 d) 31.03.2018 e) 29.02.2014

4. In Area I a JMG/S-I officer is entitled to acquire housing accommodation on personal lease upto monthly limit a) Rs.5000 b) Rs.4500 c) Rs.8000 d) Rs.8500 e) Rs.4000

5. An officer in scale –III is deputed to attend training at Kolkata, he is entitled for…….. per day as halting allowance. a) Rs.800 b) Rs.700 c) Rs.600 d) Rs.1000 e) Rs.1200

6. An officer is eligible for…… C/L in a calendar year.

a) 24 days b) 15 days c) 12 days d) 09 days e) None of these


7. An officer can accumulate 340 P/L.

True/False

8. An officer can avail compensatory leave within

a) 30 days b) 2 Months c) 1 week d) 1 year e) 6 Months

9. All full time women staff members are eligible for sabbatical leave, maximum period for

a) 12 months b) 03 Months c) 03 years d) 02 years e) 5 years

10. As per Mandatory Leave Policy an employee should avail minimum ….days

continuously leaves in a calendar year. a) 5 b) 10 c) 20 d) 4 e) 30

Q 1 2 3 4 5 6 7 8 9 10

A D C C C D C F E D b


“HRNes, Payroll, Knowledge Management Portal”

Quick Bites HRNes –Human Resources Network for Employee Service is the name coined for the HR

Portal of Bank of Baroda. One of the unique salient features of the ―HRnes‖ is the Employee Self Service Module, Bank has Knowledge Management Portal which provides lot of reference and learning

contents.

HRNes –Human Resources Network for Employee Service is the name coined for the HR Portal of Bank of Baroda. ―HRnes‖ covers the entire gamut of Human Resources Management function in the Bank.

HRnes comprises of THREE broad systems encompassing different functions:

1 HRMS Covering all current HR processes in the Bank and also employee self service

2 OLM Oracle Learning Management - which includes training administration & e-learning;

3 POWERAPPS Covering payroll, payments of various benefits, perks, welfare schemes, terminal benefits, etc. and employee self service

Functionalities of each of the above modules are detailed in circular no. BCC:BR:99/359

dated 26/11/2007.HRMS and OLM is a product of Oracle whereas Powerapps is a product from Fluous.

One of the unique salient features of the ―HRnes‖ is the Employee Self Service Module, which would deliver quality HR services to employees & Managers as under:

HRMS Employee Self Service

View personal details, including assignments Modify certain personal details like Address, Contacts ( incl Family and Dependent

details) Marital Status, PAN number, and Special Informations like Cultural Activities, VISA etc

Submit application pointing out discrepancies in data, acquiring additional qualifications using ―Intimation and Permissions‖

Seek permission required for various purposes like obtaining NOC for passport, permission for undergoing professional courses, etc. ;

Submit application for Promotion, Selection for Faculty , Special Pay Position ( for Clerical staff) whenever exercises are announced.

Submit application for request for transfer, Submit Assets& Liabilities Statement, Appraisals

Learner Self Service:

View details of trainings attended. Can enroll for e learning modules.


POWERAPPS Employee Self Service

View and print pay slip ; View monthly pay details for the -3- financial years; View and print computation of Income Tax for the current Financial year; Submit Investment details online for calculation of Income Tax ; Submit leave application. Submit request for deduction of Voluntary Provident Fund

HRMS Manager Self Service:

Through HRnes- HRMS, MANAGER SELF SERVICE Functionality enables the Branch Head to view the data of all the EMPLOYEES WORKING UNDER HIS/HER RESPECTIVE BRANCH.

The following activities are available in HRnes-HRMS-Manager Self Service:

View Employee‘s assignment details ,trainings , competencies enabling him/her for proper utilization of employee.

Submit indent for manpower requirement; Send online request for following purposes using Intimation/permission module:

1. Seek approval for Granting Powers to an employee for Operating Accounts with Other Banks;

2. Seek Approval for officiating arrangements; 3. Seek Permissions for granting Specimen Signature Number etc,

A BRIEF explanation of how to use HRnes-HRMS

You can access the package through a PC connected to the DATA CENTER by double clicking on the icon HRnes-HRMS on the desktop or alternatively by following the link http://ebizapp.bankofbaroda.co.in:8004/

Login using the username and password provided to you. The userid will be first letter of First name and first letter of Surname followed by zero following by ECNO and default password will be Welcome1. The default password should be changed on First log in.

After logging in click on the link ―BOB HRMS Employee Self Service‖ to see more menus on the right hand side.

To view data use the menu under the section ―BOB HRMS Employee Self Service‖. All Online applications which the employee needs to submit will come under the section

―BOB HRMS Employee Self Service Applications‖.

Please read the Job card attached to different Responsibility.

A BRIEF explanation of how to use HRnes Payroll

You can access the HRnes-Payroll Package through any PC connected to the DATA CENTER by double clicking on the icon HRnes-HRMS on the desktop or alternatively by following the link

http://hrnespay.bankofbaroda.co.in/powerapps/login.aspx.

Login using the username and password provided to you Read the USER Manuals provided in the Log in screen.

http://ebizapp.bankofbaroda.co.in:8004/



http://hrnespay.bankofbaroda.co.in/powerapps/login.aspx


A BRIEF explanation of how to use HRnes-Learner Self Service

Same as explained in HRnes HRMS. Instead of selecting ―BOB HRMS Employee Self Service‖ select BOB Learner Self Service‖ ->Learner Home ->Learning History

A BRIEF explanation of how to undergo e learning course

Login in HRNes application. Select BOB Learner Self Service Click on Learner Home Select CLASS from LOV ( instead of default ‗COURSE‘ ) in the search option. Give the first letter of Class ‗e channel products‖ as ‗E‘ Click GO Click on the blue coloured enrolment button and Apply You will be successful enrolled for the course ‗e channel products‘ Click on the Learner Home as above. Click on the blue coloured ‗PLAY‘ button against the ― e channel products.‖

You can appear for test at the end of the module.

Importance of Using Self Service Module:

A central database is created with the basic employee details, qualifications, past assignments/postings, contacts/ dependents, etc. Bank is relying on this data for HR decisions including promotions and transfers etc.

Verification of these data is therefore important. All employees should invariably periodically verify their details using Employee Self Service and point out discrepancy if any for correction. Any discrepancy in the data should be pointed out using online application provided through ―Intimations and Permissions‖ in Self Service.

In respect of sub staff, Branch heads are requested to show them their data through Manager Self Service and in case of any discrepancy, intimate to Regional HR for required corrections.

While verifying records, following aspects should be specifically verified:

Check the Spelling of the name, date of joining and date of birth. Check Assignment details properly.

a) First assignment should start from the date of joining b) There should be a NEW assignment from the date of Promotion / Reversion. The

date of Change in the Grade of the employees would be calculated by the system using this date and hence it is very important that the employee verifies his data thoroughly.

c) Verify Job/position in assignment history as Bank will derive functional expertise from these data.

PAN number should be filled if not filled so far as Payroll is using this for tax purpose. Details of contacts/dependents will be used for entitlement under various benefits like

LFC and Hospitalisation. Current address entered into system will be used for all future communications.


Help Desk:

Employees may take assistance of Global Help Desk (which is operational for CBS as also for all other IT related applications) for any issues pertaining to navigation or hardware problems. The procedure for seeking assistance from Global Help Desk is same which is conveyed for CBS related issues. For other assistance, they may contact their Regional HR Functionary. For queries call HELPDESK VOIP-999999 option 2 Log call at IT Helpdesk by clicking on the icon available on the desktop For password reset contact VOIP-999999 option 3 / land line – 022-

6983076/66983075 or email hw.support.dc@bankofbaroda,com.

BANK‟S INTRANET ( Knowledge Management portal)

The Bank‘s Knowledge Management (portal serves as a platform for the employees to interact with the each other as also get updated on the various new circulars, news, updates of the Bank. Bank‘s Intranet can be accessed at https://intranet.bankofbaroda.co.in Employee may log in intranet with HRnes id & password.

The important features of our knowledge management Portal are 1. All the circulars issued are available here for reference at any point of time with

added facility of search and linkage to earlier circulars issued on a particular subject. 2. In resources folder under Documents Menu Book of Instructions, Manuals, Forms &

Various Software are placed for quick reference of the employees. 3. In Publication folder under Documents Menu our various publications like Forex

Digest, Retail Panorama, Spandan, Financial Inclusion News Letter, Agri. Update etc are placed.

4. The following information about our bank are also available in this portal i.e., Board of Directors, Media Reports, Interest Rates (Deposits, Advances & Gold), CMD Message, Bank Performance etc.

5. Discussion Forums, chat rooms are available. 6. Social networking within the organization is available. 7. Various types of polls and surveys can be conducted. 8. Quizzes can be organized on various topics.

Bank has implemented new Knowledge Management Portal- Oracle Web Center Suite 11g on pilot basis which has following features:

1. Primarily the portal having 3 types of spaces viz., Global Space, Personal Space & Other Space (For Zonal Offices, Overseas Territories & Different Business Verticals).

2. All the employees can access the Global Space and the following are the facilities available at this Global Space.

a. Industry News can be accessed through RSS (Really Simple Syndication) attached with this space. The RSS of the all important financial websites will be linked here.

b. The employees are permitted to initiate / create the discussion topics under discussion forum. So that any employee can participate in the discussion to share their views.

c. Under Wiki, various reference materials related to Banking will be placed in the portal which will be managed by a separate moderator.

https://intranet.bankofbaroda.co/


d. Daily News Flash issued by Staff College is placed under Documents in this portal.

e. Through this portal external linkage given to various Bank‘s sites viz., HRMS, Payroll, DEBOS, Outlook Access, CRISIL, Help Desk, Internet Banking & LAPS.

3. The employees can access their Personal Space and following are the facilities available thro this Personal Space.

a. Social networking with other employees within our bank is possible. b. Individual employees who wish to share their knowledge on different Banking

Domain Areas are allowed to sent their materials to moderator and the same will be published in the portal after the approval of moderator.

Apart from the above two types of spaces Zonal offices, Overseas territories & Business verticals can also create their own spaces in this portal through the moderator and the this space can be designed by adding topics / issues related to the zone / territory.


TEST YOUR UNDERSTANDING:

1. Bank‘s intranet is known by the name :- a) News flash b) Knowledge Management Portal c) BOB Finacle d) BOBMAITRI e) Hello Barodians !

2. Salary and Leave modules can be found on :- a) HRMS b) HRnes Payroll c) KM Portal d) BOB Finacle e) ASCROM

3. HRNes stands for :- a) Human Resources Network of Employees System b) Human Resources National Electronic System c) Human Resource Networking for Employees Service d) Human Relations Net Enabled Service e) Human Resources Net Enabled System

Answers

Q 1 2 3

A b b a

OO

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