ROLE GUIDE CUM CERTIFICATION MANUAL

ASSOCIATES
For Internal Circulation Only
 FOREWORD

Dear Role Holder,

Banking Industry is witnessing changes at an unprecedented pace. It has, therefore

become imperative that we continuously update and upgrade our skills relating to our

profession. Each one of us should not only understand his/her role and responsibilities but

also continuously equip oneself with latest guidelines in the related area. This will not only

improve professional effectiveness but would also lead to enhanced customer satisfaction.

With these objectives in mind Bank has introduced role-based certification programs for

employees across all levels.

We, at STU, have made an effort in this direction by compiling a role guide cum

certification manual which will provide you the insight regarding the role you are currently

performing in the bank. This booklet may be referred to whenever you need clarity in your

day to day working.

We are confident that this booklet will not only serve as ready reference for your current

role but would also help in mitigating associated risks.

We wish you all the best for a successful and enriching journey in your current role.

With best wishes,

Chief General Manager (STU)
 CERTIFICATE PROGRAMME-ASSOCIATES
(OTHER THAN CASH-IN-CHARGE AND THOSE DEALING IN FOREX)
MODULE-A
COMPLIANCE
Prepared by
State Bank Institute of Human Resource Development,
Indore
 MODULE-A
COMPLIANCE
INDEX
Chapter No Topic Page No

1 KYC /AML Guidelines 1-13

2 Tax Compliance 14-22

3 BCSBI Guidelines 23-27

4 Customer Service Guidelines 28-39

5 Operational Risk Management-Key areas (VVR, Cheque 40-51

payment, key management, Inventory management etc.)

6 Complaint Management 52-58

7 Cash Handling Procedure 59-68

8 Cheque Handling Procedure 69-74

9 The Importance of Maintaining Data Accuracy 75-77

 Chapter-1 :KYC and AML

Reserve Bank of India has specified Know Your Customer (KYC) standards to be
followed by banks and measures to be taken in regard to Anti Money Laundering
(AML) and Combating of Financing of Terrorism (CFT). The guidelines incorporate :

 Obligations cast on banks under the Prevention of Money Laundering Act

 (PMLA), 2002
 Recommendations made by the Financial Action Task Force (FATF) on AML
standards and CFT
 Customer Due Diligence (CDD) for banks as stipulated by the Basel
Committee on Banking Supervision

The objectives of KYC/AML/CFT guidelines are to prevent the banks from being
used by criminal elements for money laundering or terrorist financing activities.
The KYC procedures also enable banks to know/understand their customers and
their financial dealings better which in turn help them manage their risks prudently.

In addition to above KYC also helps in business growth by knowing customers’

needs better.

Customer Due Diligence (CDD) : Is a process to understand customer’s profile.

CDD is an important part of KYC Process. CDD is required for :-

 Opening new accounts

 Transactions above reasonable threshold in an account
 Transactions in series summing to amount above reasonable threshold
 Transfers – like NEFT, RTGS, SFMS, SWIFT
 Suspected transactions leading to Money Laundering
 Suspected transactions leading to Funding of Terrorism
 When we have doubts on previously collected information / data
 Enhanced CDD for High Risk Customers e.g. PEP, their Relatives

KYC Policy of the Bank has 4 Elements

1 Customer Acceptance Policy 2. Customer Identification Procedures

3 Monitoring of Transactions 4. Risk Management

Customer Acceptance Policy (CAP): Guides us on which type of account should

be opened. No account should be opened in anonymous / fictitious name. No
account to be opened where Bank cannot establish the identity of the customer. No
transaction should be permitted without CDD. The mandatory information to be
sought for KYC purpose while opening an account

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The mandatory information also to be sought for KYC purpose during the periodic
updation based on Risk Profile of the Customer. CDD Procedure is followed for all
the joint account holders, while opening a joint account. Account should not be
opened for those persons or entities whose name appears in the negative lists
circulated by Reserve Bank of India

Customer Identification Procedure (CIP)

CIP means identifying the customer using reliable, independent source like
documents, data or information. The Policy for CIP need to be approved by Bank’s
Board and it should spell out Customer Identification Process while

 Opening the Account

 Carrying out a financial transaction
 Granting Loan

CIP for Natural Person

Identity and address of the natural person are to be verified through the following
documents.

 Recent Photograph
 Proof of Identity with Photograph
 Address Proof

For this purpose RBI has identified some specific documents for proof which are
known as Official Valid Documents (OVDs).

The list of OVDs consists of the following:

i. the passport,
ii. the driving licence,
iii. the Voter's Identity Card issued by Election Commission of India,
iv. job card issued by NREGA duly signed by an officer of the State Government,
v. the letter issued by the National Population Register containing details of name,
address, or any other document as notified by the Central Government in
consultation with the Regulator.

Aadhaar related instructions

As per Ministry of Finance (Department of Revenue) Notification dated 1 st June,

2017 in the Gazette of India Aadhaar & Permanent Account Number (PAN) are no
longer in the list of Officially Valid Documents (OVDs) but these two documents were
made mandatory for the following purposes.

(a) at the time of commencement of an account based relationship, i.e. at the time of
account opening,

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(b) in all other cases while carrying out transaction of an amount equal to or
exceeding rupees fifty thousand

In view of the Supreme Court judgement, the bank has now issued the following
guidelines on obtaining Aadhaar from customers.

For opening of new accounts, Aadhaar in physical form will be accepted as

one of the documents for proof of identity/proof of address purely on
voluntary basis by obtaining specific consent of the customer in the
prescribed format. (Format as per circular no.R&DB/OPS/KYC/UIDAI/1/2018-19
dated 04.04.2018)

However, authentication of Aadhaar through e-KYC with UIDAI database may

not be carried out, till clarification from RBI is received. Branches will obtain
copy of the Aadhaar Card submitted by the customer, verify the same with the
original by the authorised official and keep it on record as per directions
contained in our e-circular R&DB/OPS-KYC/7/2017-18 dated 23.11.2017.

Aadhaar enrolment number will not be accepted till clarifications are received
from RBI. Other Officially Valid Documents(OVDs) as per current RBI Master
Direction viz Passport, Driving License, Voter Identity Card, Job Card issued
by NREGA and letter issued by National Population Register will continue to
be accepted as proof of identity/proof of address.

For existing accounts, request for Aadhaar seeding will be accepted only for
the purpose of receiving DBT benefits by obtaining the specific consent from
the customer. Authentication through e-KYC may be permitted in such cases.

For the purpose of KYC updation, Aadhaar will be accepted on voluntary basis
along with the consent from the customer. The customer may also submit one
of the OVDs prescribed by RBI for KYC updation.

Document for proof of address

In case the identity information relating to the Aadhaar number or PAN submitted by
the customer does not have current address of the customer, he/she shall submit an
OVD showing the current address to the Bank.

As per the relaxation given by the Central Govt., the following documents shall be
deemed to be officially valid documents for the limited purpose of proof of address, in
case of officially valid document furnished by the customer also does not contain
updated address,

(i) utility bill which is not more than two months old of any service provider
(electricity, telephone, postpaid mobile phone, piped gas, water bill);
(ii) property or Municipal tax receipt;

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(iii) pension or family pension payment orders (PPOs) issued to retired employees by
government Departments or Public Sector Undertakings;
(iv) letter of allotment of accommodation from employer issued by State Government
or Central Government Departments, statutory or regulatory bodies, public sector
undertakings, scheduled commercial banks, financial institutions and listed
companies and leave and licence agreements with such employers allotting official
accommodation;

Provided that the customer shall submit updated officially valid document with
current address within a period of three months of submitting the above deemed
“officially valid documents”.

Small Account

In case an individual customer who does not have Aadhaar / OVDs and desires to
open a bank account, bank shall open a “Small Account” with the limited facilities
on production of a self-attested photograph and affixation of signature or thumb print
on the form for opening the account provided.

A ‘Small Account' means a savings account in which :

 the aggregate of all credits in a financial year does not exceed rupees one
lakh;
 the aggregate of all withdrawals and transfers in a month does not exceed
rupees ten thousand; and
 the balance at any point of time does not exceed rupees fifty thousand.

The small account shall remain operational initially for a period of twelve months,
and thereafter, for a further period of twelve months if the holder of such an account
provides evidence before the Bank of having applied for any of the OVDs within
twelve months of the opening of the said account, with the entire relaxation
provisions to be reviewed in respect of the said account after twenty-four months.

CIP for Legal Entity

For any legal Entity, the CIP includes:

 Legal Status of the Entity.

 CIP of the Person who controls / manage the entity. We also need to ensure
how the person has got authority to control the entity.
 Information on Business or Activity of the Entity

For Example in case of a company, we need to obtain the following documents for
opening the account.

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KYC Documents for opening an account for companies

 CIP of Company – means Company Registration, PAN, GSTIN

 Memorandum and Article of Association to know the nature of the company,
its business, directors, activities, financial dealing
 A board resolution for opening the account and granting authority to persons
to operate the account.
 CIP of all the persons who will operate the account.

Hint : This method of CIP will be applicable to all type of accounts. However,
for exact KYC documents please refer to KYC requirements for the kind of
account(s).

Risk Categorisation of Customers

RBI Guidelines on Customer Risk Categorization

For Risk Management, REs shall have a risk based approach which includes the
following.

a) Customers shall be categorised as low, medium and high-risk category, based on

the assessment and risk perception of the RE.

b) Risk categorisation shall be undertaken based on parameters such as customer’s

identity, social/financial status, nature of business activity, and information about the
clients’ business and their location etc. While considering customer’s identity, the
ability to confirm identity documents through online or other services offered by
issuing authorities may also be factored in.

Low Risk Category

1. Salaried Employees (whose salaries are well defined)

2. Customer belonging to lower economic strata, accounts opened under financial
inclusion
3. NGOs/NPOs promoted by UN or its agencies.
4. Government owned Companies/ Departments and (State/Central), PSUs, JVs
with Govt., Regulators, FIs, Statutory bodies etc.
5. All customers not classified either as High/Medium Risk Categories
6. Individual Account holder with Credit/debit summations below Rs.50 lacs per
annum
7. Non Individual account holders with credit debit summations below Rs.2 crores
p. a.

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 Medium Risk Category

1. New accounts opened under Low Risk while on boarding, during first 180 days
2. Non-Bank Financial Institution
3. Stock Brokers
4. Import/Export customers
5. Telemarketers
6. Pawn Shops
7. Auctioneers
8. Venture Capital Companies
9. All In-operative accounts
10. Individual Account holder with Credit/debit summations of Rs.50.00 lacs to below
Rs.2.00 Crores per annum
11. Non Individual account holders with credit debit summations of Rs.2.00 crores to
below Rs.10.00 Crores per annum

High Risk Category

1. Firms with Sleeping partners

2. Companies having close family shareholding
3. Multi-Level Marketing Companies
4. High Net worth Individuals - Individuals with total deposits of Rs.1.50 Crores or
more
5. Pooled Accounts
6. Account opened/operated by Power of Attorney Holders
7. Individual Account holder with Credit/debit summations of Rs.2.00 crores & more
per annum
8. Non Individual account holders with credit debit summations of Rs.10.00 crores &
more per annum
9. Politically Exposed person of foreign origin
10. Bullion Dealers/jewellers
11. Non Resident Customers (NRIs)
12. Trust Charities, NGOs & Organisations receiving donations from India & abroad
13. Non face- to-face Customers

Periodic updation of KYC

Periodical updation of KYC information of every customer which should include

the following, should be carried out.

(i) KYC exercise should be done at least every two years for high risk customers,
every eight years for medium risk customers and every ten years for low risk
customers. Such KYC exercise may include all measures for confirming the
identity and address and other particulars of the customer that the bank may

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 consider reasonable and necessary based on the risk profile of the customer,
taking into account whether and when client due diligence measures were last
undertaken and the adequacy of data obtained.
(ii) Fresh proofs of identity and address at the time of periodic updation need not be
sought from those customers who are categorised as ‘low risk', in case there is
no change in status with respect to their identities and addresses. A self-
certification by the customer to that effect should suffice in such cases. In case
of change of address of such ‘low risk' customers, they could merely forward a
certified copy of the document (proof of address) by mail/post, etc. Physical
presence of such low risk customer at the time of periodic updation should also
be not insisted. The time limits prescribed at (i) above would apply from the date
of opening of the account/ last verification of KYC.
(iii) Fresh photographs to be obtained from minor customer on becoming major.

Money Laundering : Money Laundering is usually done through Placement,

Layering and Integration. Placement is process of breaking large cash deposits into
small deposits to avoid reporting. Placement is done using many accounts and on
across days to avoid being in “reporting requirement”. Next stage is layering where
proceeds are separated from origin using complex financial transactions. This is
done using investments, billing, remittances within related entities. Integration is last
stage in Money Laundering where money initially placed in small transactions is
“integrated” back to intended beneficiary.

An apparently legitimate explanation of proceeds or transactions is provided and the

money becomes “White”. Thus, without having paid the tax on money, the “black”
money is converted into “white” and that is why the process in known as “Money
Laundering”.

Money Mules

 Money Mules are persons engaged by criminals to hide their route of funding.
 For example, a fraudster may engage an ignorant person to get deposit in his
account and later give that money to fraudster.
 Money Mules can also work outside banking channel and may use Hawala
System to transfer funds within country or even outside country.
 To ensure that Money Mules cannot use banking channel for money
laundering, we should :-
 Open account with proper KYC Process, CIP and CDD
 Monitor transactions in the accounts
 Our AML-CFT Centre at Jaipur has reliable system to monitor such
transactions. The Software we use is AMLOCK and it generates ALERTS
which are sent to branches for verifying the account and monitoring the
transactions.

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PMLA Act 2002

Prevention of Money Laundering Act 2002 (PMLA) is most effective and main Anti
Money Laundering (AML) Act in India. As per Section 3 of PMLA Act “Earning wealth
illegally and claiming it untainted property is an Offence”. Financial Institutions are
mandated to maintain proper record up to 5 years and to submit whenever asked for

RBI Guidelines for PMLA

 Monitor transactions to identify suspicious transactions

 Reporting of Suspicious transactions
 Maintain Proper, Secure and Accessible Records till 5 years
 Use Software for Monitoring the Transactions
 Compliance of PMLA Guidelines and Audit for compliance
 Train staff in areas of KYC, AML, CFT Compliance

Combatting of Financing Terrorism (CFT) : CFT is usually used with AML. As

financing of terrorism is one of the major use of black money, both the terms are
used together. While AML focuses on preventing banking channels being used for
money laundering, CFT focuses on banking channels being used for financing of
terrorism. At branch level, all aspects of CFT are covered if we comply with PMLA.
OFAC is another concept associated with CFT. As most of terrorist outfits are
outside country, their funding from country will usually go through SWIFT. OFAC
helps us in preventing such remittances. We need to understand that OFAC is a tool
for CFT but it is not solely meant for CFT nor it is only tool. We also need to be
cautious during internal remittances.

OFAC : Office of Foreign Control Assets (of USA): Any remittance to US need to
be checked for black listed beneficiaries. OFAC is different from FATCA. OFAC is
only for remittance to US while FATCA is for any financial asset outside US, in any
country where tax is liable to paid in US.

In our Bank OFAC filter has been installed at GMU Kolkata.

OFAC Filter is just like a text file having a list of banned or black listed individuals or
entities by US. Before transmitting any message to SWIFT, it is checked for OFAC
Filter.

Reporting under PMLA

Reporting under PMLA is done to FIU-IND (Financial Intelligence Unit – India). We

have our AML CFT Monitoring Cell at Jaipur where all our transactions are
monitored for finding transactions to be reported to FIU-IND.

Suspected transactions are marked as Positive. If required they are referred to

Branches also. After a structured process of scrutiny, “positive” (=suspicious)
transactions are reported to FIU-IND.

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FIU-IND coordinates with international intelligence, investigation, and enforcement
agencies in pursuing the global efforts against money laundering and related crimes.

Reporting Requirements

Following type of Reporting is done to FIU-IND. Most of the reporting is done by our
AML-CFT Cell directly while a few reports need to be prepared by branches.

1) STR(Suspicious Transaction Report)

STR is generated by our AML-CFT Cell Jaipur and reported to FIU-IND, after due
verification in case of all such transactions.

2) CTR (Cash Transactions Report)

Any Cash transaction in an account above Rs.10 lakhs and cash transactions of
above Rs.10 lakhs per customer in a calendar month
If foreign currency transactions, then equivalent to 10 Lakhs or above

3) CCR (Counterfeit Currency Report)

This reporting is done by branches to BOD via RBO-ZO-LHO

 Branches need to report pieces of counterfeit currencies of all denomination

 The currency found during verification or sorting also need to be reported.
 We should also report such cases to Police if more than 4 pieces are
recovered from a single transaction.

4) Non Profit Organizations Transactions Report (NTRs)

All transactions involving receipts by non-profit organisations of value more than
rupees ten lakh or its equivalent in foreign currency are required to be reported

5) Cross Border Wire Transfer

We need to be very careful while permitting any remittance, especially across
border. However in case if remittances are found suspicious we need to report such
wire transfers through STR.

This reporting is different from OFAC Filter. OFAC Filter only check for remittances
for listed entities by USA. OFAC “Positive” remittances are not permitted at all.

Beneficiary owner:

When a bank/FI identifies a customer for opening an account, it should identify the
beneficial owner(s) and take all reasonable steps in terms of Rule 9(3) of the PML
Rules to verify his identity, as per guidelines provided below:

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(a) Where the client is a company, the beneficial owner is the natural person(s),
who, whether acting alone or together, or through one or more juridical person,
has/have a controlling ownership interest or who exercises control through other
means.

Explanation- For the purpose of this sub-clause-

1. “Controlling ownership interest” means ownership of/entitlement to more than 25

per cent of the shares or capital or profits of the company.
2. “Control” shall include the right to appoint majority of the directors or to control the
management or policy decisions including by virtue of their shareholding or
management rights or shareholders agreements or voting agreements.
(b) Where the client is a partnership firm, the beneficial owner is the natural
person(s), who, whether acting alone or together, or through one or more juridical
person, has/have ownership of/entitlement to more than 15 per cent of capital or
profits of the partnership.
(c) Where the client is an unincorporated association or body of individuals, the
beneficial owner is the natural person(s), who, whether acting alone or together,
or through one or more juridical person, has/have ownership of/entitlement to
more than 15 per cent of the property or capital or profits of the unincorporated
association or body of individuals.
(d) Where no natural person is identified under (a), (b) or (c) above, the beneficial
owner is the relevant natural person who holds the position of senior managing
official.
(e) Where the client is a trust, the identification of beneficial owner(s) shall include
identification of the author of the trust, the trustee, the beneficiaries with 15% or
more interest in the trust and any other natural person exercising ultimate effective
control over the trust through a chain of control or ownership.
(f) Where the client or the owner of the controlling interest is a company listed on a
stock exchange, or is a subsidiary of such a company, it is not necessary to
identify and verify the identity of any shareholder or beneficial owner of such
companies.

There exists the possibility that trust/nominee or fiduciary accounts can be used to
circumvent the customer identification procedures. In such cases, banks/FIs should
determine whether the customer is acting on behalf of another person as
trustee/nominee or any other intermediary. If so, banks/FIs should insist on
satisfactory evidence of the identity of the intermediaries and of the persons on
whose behalf they are acting, as also obtain details of the nature of the trust or other
arrangements in place. The different categories of beneficiaries should be identified
as defined above. In the case of a 'foundation', steps should be taken to verify the
founder managers/ directors and the beneficiaries, if defined.

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 FOR OPENING OF CURRENT ACCOUNTS BY NON-INDIVIDUAL CUSTOMERS
(eCircular Department: TRANSACTION BANKING UNIT, Sl.No.: 1447/2018-19
Circular No.: NBG/TBU-LTP/38/2018 – 19, Date: Tue 29 Jan 2019)

Step 1: Customer approaches the Bank to open Current Account.

Step 2: Customer fills the revised AOF including an undertaking format and submits
the same with required KYC Documents.
Step 3: If the customer declares in the Undertaking Form that the account holder is
not enjoying any credit facility from other Bank(s), Branch may proceed ahead
with opening of Current Account.
Step 4: In the event of Branch receiving a declaration from the customer about
availing credit facilities from other Banks, the Branch will not open Current
Account of entities immediately and send e-mail in the name of –
nodalofficer.ca ….(CAG/MCG/SME/ ABU/SAMG as the case may be)
@sbi.co.in, e.g. -for SME customer nodalofficer.casme @sbi.co.in, for – (a)
Obtaining NOC/permission from the concerned Lending Bank(s) and (b) to
obtain the CRILC Report for the customer having exposure Rs.5 crore and
above.
Step 5 :The concerned Current Account officer will keep the Current Account
Opening form in his/her custody and diarize to follow up with the Nodal Officer
to receive the NOC and CRILC Report, wherever applicable, within the
stipulated period of a fortnight.
Step 6 :After a minimum waiting period of a fortnight and if the exposure is below
Rs.5 crore, Branch may proceed to open Current Account of the prospective
customer in case no response of the existing Lending Bank(s) is received
through Nodal Officer of the concerned Business Vertical/Business Unit.
Step 7: In case of exposure of Rs. 5 crore and above from the Banking System,
Branch will wait for CRILC Report for the customer through Nodal Officer of
the concerned Business Vertical/Business Unit and proceed as under:

a) In case the account is reported better than SMA-I category (i.e. SMA-0
category) the Current Account can be opened by the Branch without waiting
further for the NOC/permission from Lending Bank(s). However,
NOC/permission from Lending Bank(s) must be obtained within 15 days from
the date of opening the Current Account.

b) In case the account is reported under SMA-I category & above (i.e. SMA-1
and SMA-2), the Branch should mandatorily obtain prior NOC/permission from
the Lending Bank(s) through Nodal Officer of concerned Business
Vertical/Business Unit, before opening the Current Account.
Step 8: The Authorized Official /Checker will verify the Account Opening Form,
customer’s declaration / undertaking and the KYC Documents with Original. If it
is in order, the Authorised Official / Checker will authorise opening of the
account.

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LET US SUM UP

With the increase in money laundering, identity theft, terrorist financing and financial
frauds, banks have been instructed through means of policies and regulations, to
exercise control and follow the regulatory guidelines. This has been carried out by
the global standard of KYC ( Know your Customer).

The main objective of KYC/AML and CFT (Combating the Financing of Terrorism) is
to prevent banks from being used, intentionally or unintentionally, by criminal
elements for money laundering or terrorist financing activities. KYC procedures also
enable banks to understand their customers and their financial dealings better which
in turn helps them manage their risks.

Currently, KYC is a legal requirement in many sectors, apart from banks. Whether
it’s mutual Funds, insurance, broking, or commodity trading KYC has been made
compulsory in order to verify the identity of the clients.

When banks frame their KYC policies they generally follow some sort of guideline;
below is an example of RBI (Reserve Bank of India) guideline that is put in place for
banks in India to follow:
1.Customer Acceptance Policy - Ensures that explicit guidelines are in place for
acceptance of customers.
2.Customer Identification Procedures - Identifies the customer and verifies his/her
identity by using reliable data or information.
3.Monitoring of Transactions - Understands as well as observes the activity of a
customer, to identify transactions that fall outside the regular pattern of activity.
4.Risk Management - Establishes appropriate procedures and ensures their effective
implementation.

In conclusion, KYC is important for banks to prevent money laundering, combat

financing of terrorism and manage risk.

FATCA stands for the Foreign Account Tax Compliance Act. It is a new piece of
legislation by US to help counter tax evasion in the US. The objective is to gather
information about the accounts maintained by US persons in countries other than
US.
Common Reporting Standards (CRS), developed by the Organization for Economic
Cooperation and Development (OECD), is a global reporting standard for the
automatic exchange of information with an objective to allow tax authorities to obtain
a clearer understanding of financial assets held abroad by their residents, for tax
purposes.

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 CHECK YOUR PROGRESS

1. RBI has specified Know Your Customer (KYC) standards to be followed by

banks and measures to be taken in regard to _____ and _____.
Anti Money Laundering (AML)
a) Combating Financing of Terrorism (CFT).
b) Both a & b
c) None of the above

2. The primary objective of the KYC, AML & CFT Policy of the Bank, is to
prevent the Bank from being used, intentionally or unintentionally, by
criminal elements for money laundering or financing of terrorism. Purposes
proposed to be served by the Policy are:

a) To prevent criminal elements from using the Bank for money laundering
activities
b) To enable the Bank to know/understand the customers and their financial
dealings better which, in turn, would help the Bank to manage risks prudently
c) To put in place appropriate controls for detection and reporting of suspicious
activities in accordance with applicable laws/laid down procedures.
d) All of the above

3. In case of non-compliance of KYC requirements by the customers despite

repeated reminders, ‘partial freezing' on such KYC non-compliant accounts
may be imposed in a phased manner. This statement is

a) True
b) False

4. To whom finally suspicious transactions reported by the bank ?

a) CBI
b) Enforcement Directorate
c) FIU-IND
d) RBI



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 Chapter 2-Tax Compliance

1.Introduction
The concept of TDS requires that the person, on whom responsibility has been cast,
is to deduct tax at the appropriate rates, from payments of specific nature which are
being made to a specified recipient. The deducted sum is required to be deposited to
the credit of the Central Government. The recipient from whose income tax has been
deducted at source gets the credit of the amount deducted in his personal
assessment on the basis of the certificate issued by the deductor.

While the statute provides for deduction of tax at source on a variety of payments of
different nature, in this booklet, an attempt is being made to discuss various
provisions of TDS on payments made by the branches.

2.Payments subject to TDS

Following payments made by the Bank are subjected to Tax Deduction at Source
(TDS) under the stipulated sections of Income Tax Act mentioned there against:
 Interest on securities [Section 193];
 Interest other than Interest on securities [Section 194A];
 Payment/Credit to Contractors/sub Contractors [Section 194C];
 Commission, brokerage etc. [Section 194 H];
 Rent [Section 194 I];
 Fees for professional or technical services or royalty [Section 194J];
 Transfer of immovable property [Section 194IA];
 Interest [other than NRE/FCNR Ac] & any other payments made to
non-residents,which are taxable under Income Tax Act [Section 195];
 Any other payments liable for TDS.

TDS REQUIREMENTS AT A GLANCE - FINANCIAL YEAR 2018-19 PAYMENTS

TO RESIDENTS OTHER THAN SALARY
Section of Nature of When to deduct tax at Source Rate
IT Act Payment (%)
193 Interest on Interest on 8% savings(Taxable) Bonds, 10
Securities 2003 exceeding Rs 10,000/-
Interest on 7.75% Savings(Taxable)
Bonds, 2018 exceeding Rs 10,000/-
194A Interest other than Interest on Term Deposits [including RD] 10
interest on exceeding Rs.10,000/- per person for
securities Bank as a whole in a financial year for
other than senior citizen
exceeding Rs.50,000/- per person for 10
Bank as a whole in a financial year for
senior citizens

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 TDS REQUIREMENTS AT A GLANCE - FINANCIAL YEAR 2018-19 PAYMENTS
TO RESIDENTS OTHER THAN SALARY
Sectio Nature of When to deduct tax at Source Rate
n of IT Payment (%)
Act
194C Payment/credit to Where a single contract payment exceeds
Contractors/Sub- Rs.30,000/- or in cases where the aggregate
Contractors amount of such payments credited or paid or
likely to be credited or paid during the financial
year (including advances if any) exceeds
Rs.1,00,000/-. TDS is required to be made on
payment or credit to :
a) Individual/HUF 1
b) Other than individual/HUF 2
194H Commission or When such commission or brokerage exceeds 5
brokerage Rs.15,000/ - in a F.Y.
194I Rent When rent in a financial year exceeds
Rs.2,40,000/- [including advance if any]
i. Rent of Machinery, Plant & Equipment 2
ii. Rent of others viz. land, building, furniture 10
and fittings etc.
194I-A Transfer to When consideration on acquisition of 1
immovable immovable property from a resident transferor
property (other than rural agricultural land) equal to or
more than Rs. 50,00,000/-
194J Fees for When such fees in a financial year exceeds 10
professional or Rs.30,000/-
technical services Remuneration / fees / commission payable to 10
director (not being in the
nature of salary) - No threshold limit for TDS on
such payments
Payee engaged only in the business of 2
operation of Call Centre (w.e.f 01.06.2017)
Note : In case, PAN is not furnished by the deductee, tax shall be deducted at 20%
TDS is not to be deducted on Service Tax/GST component (if shown separately in the
Invoice)
* In case, Payee - transporter submits a declaration in prescribed form along with
PAN stating that he is covered under section 44AE, tax is required to be deducted.

3. When to deduct Tax:

TDS is to be deducted at the time of:
i. Credit of such sum to the account of the payee; or
ii. Payment thereof; or

Page 15 of 77
iii. Crediting such sum to any account in the books of accounts whichever is earlier.
Therefore, the branches/offices should ensure that TDS is deducted on the
provision for expenses that is made in the books of accounts at the year
end.

Branches should take extra caution at the time of making actual payments to the
vendors immediately after the year end, so that the TDS deducted earlier against
provision for such expenses is accounted for and there is no double
deduction/deposit of TDS in this regard. The deductees should also be duly
informed.

4. Importance of Permanent Account Number (PAN):

Under Section 206AA of the Income Tax Act, the rate of TDS is higher of 20% or the
applicable rate in all cases where valid PAN is not quoted by the recipient [except
on payment of interest under section 194LC or to non-residents not being a
company or foreign company, subject to prescribed conditions (as may be
notified by Income Tax department)].
Further, the declaration filed in 15G and 15H is not valid unless the person filing the
declaration furnishes his valid PAN in such declaration. Therefore, branches should
make extra efforts in persuading the customers to provide their PAN.

5. Form 15G/15H:
.i. Individual (of less than 60 years of age) or a person (not being a Company or
Firm), who is resident in India and can request the Bank not to deduct tax at source
on interest paid/payable on time deposits and rent payable by furnishing a
declaration in Form 15G to the effect that the tax on their estimated total income of
the relevant financial year will be Nil. However, the declaration in Form 15G is not
applicable if the amount of the income (individually or in aggregate) credited or paid
or likely to be credited or paid during the concerned financial year in which such
income is to be included exceeds the maximum amount which is not chargeable to
tax (Rs.2,50,000/- for F.Y. 2018-19).

ii. Resident senior citizen person (60 years or more anytime during the previous
year) can furnish similar undertaking in Form 15H (certifying that his estimated
taxable income is below the maximum amount which is not chargeable to tax and tax
thereon would be NIL), irrespective of the interest amount and rent amount paid or
credited or likely to be paid or credited during the financial year.

In this regard, it is to be noted that a customer would need to provide the details of
all of his/her time deposits with Bank in Form 15G/H. The declaration given in the
Form is valid for a financial year.

The onus of intimating change in any particulars provided in the form is on the
depositor and not on the bank.

Page 16 of 77
6. Responsibilities/ Obligations of deductor pertaining to TDS compliance:
The following steps are part of the Bank’s TDS compliance responsibility:-
 To correctly deduct tax at source wherever required under the Income Tax
Act.

 Under the centralised environment, TDS will be remitted centrally at whole

bank level, while the branches are responsible for ensuring correct deduction
of tax.

 Under Centralised environment, from F.Y. 2017-18, the TDS statements

(Form 24Q, 26Q & 27Q) will be filed at Central level

 TDS Certificates:-
Form 16A (for customers & Vendors) shall be accessible to
branches/operating units through TDS Reporting System (TRS) as well as
through their Branch report folders.

 Branches should ensure that all the details of Form 15G and 15H received
from customers are captured in system, so that benefit of non-deduction of tax
is passed on to customer. Further, the Branches shall be required to retain the
physical forms for a period of seven years from the end of the financial year in
which the Form 15G/ Form 15H has been received. [

 Return filing of Form 15G and 15H received during the quarter with Income
Tax Department shall be filed centrally.

 The branches/offices of the Bank are required to collect and preserve the
certificate issued under section 197 provided by the deductees based on
which tax is not deducted or deducted at a lower rate. Branches / Operating
Units shall be extra cautious that the exemption / concession
certificates should have the new Centralised TANs on them.

7. Consequences for noncompliance of TDS provisions:

Non-compliance with TDS requirements provided in the IT Act is subject to severe
penalties, as below :

simple interest @ 1% under section 201(1A) for every month or part of a month on
the amount of tax in arrear from the date on which such tax was deductible to the
date on which such tax is actually deducted. Further, the deductor may be liable for
penalty of sum equal to the amount of tax, which has been failed to be deducted.
Branches/Offices should, therefore, ensure that there is no violation of TDS
provisions.

Page 17 of 77
8. TDS CENTRALISATION FROM F.Y 2017-18

With a view to strengthening the tax compliance function and better customer
service, our Bank decided to centralise TDS compliance of whole bank level at
Corporate Centre, Mumbai from 1st April 2017. As the statutory compliance will be
ensured at central level, branches will be free from the hassles related to TDS
remittance and TDS return filing there by providing better customer service.
Centralized filing of TDS return under few Central TANs is done through an
electronic platform at central level from the financial year 2017-18.
TDS deducted from the each streams viz., CBS, VPS, HRMS and CPPC are parked
in the respective branch’s new TDS BGL accounts. Following five new BGL accounts
for TDS are available at all branches/offices :

S No Stream Name of the BGL New BGL

allotted
1 CBS TDS on Interest of deposit-NEW 4898047
2 VPS TDS on payments made for Rent-NEW 4898048
3 VPS TDS on payments-VPS(Other than Rent)-NEW 4898049
4 HRMS TDS on payments to employees-HRMS-NEW 4898050
5 CPPC TDS on Pension payments -NEW 4898051

a) The monthly TDS deduction data of each stream are uploaded in the TRS.
b) At the month end, the balance in all branches TDS BGL accounts are transferred
to Central TDS BGL at Corporate Centre for onward TDS remittance to
government.
c) MAPPING OF NEW TANS: Bank has allotted separate TAN for each stream viz.
HRMS, CPPC and VPS. However, with regard to CBS stream, due to voluminous
CBS data, all branches/offices in a network of Circle are mapped to single TAN.

TAN mapping is done as under-

Stream TAN Mapping
HRMS MUMS86151C
CPPC MUMS86152D
VPS (incl. Rent module) MUMS86153E
CBS TAN will be mapped to each branch/office
based on network in the circle.
Miscellaneous data (For MUMS86154F
payments outside the 4
streams)

• All the branches under CAG/MCG/SAMG/CC establishments are allotted single

TAN each.

Page 18 of 77
9. Miscellaneous TDS Remittance & Reporting-Change in Procedure
Post TDS centralization, TDS Remittance of TDS deducted by the various source
systems (i.e. CBS, VPS, HRMS & CPPC) is being made centrally. However, there
are certain transactions which are not routed through the above mentioned Source
Streams and TDS on such transactions is being deducted manually by the branches
and deposited under Central Misc TAN “MUMS86154F”.

In view of the above, the Bank has proposed to change process flow for TDS on
Miscellaneous payments w.e.f. 01.04.2018 as below:

S.No Particulars Existing Proposed

(upto 31st (w.e.f. 01st April 2018)
March 2018)
i Tax Deduction TDS will be No Change
deducted manually
by the branches
ii Parking of Tax Branches are using TDS to be parked in a new
deducted by their designated
branch Parking/Current BGL - “4899154” only.
account.
iii Transfer of branch Not Applicable At EOD of every month, amounts
BGL balance to from Branch TDS BGL will be
central TDS BGL automatically transferred to central
BGL
v TDS Remittance Not Applicable •Branches will not pay TDS for all
(for TDS deducted TDS deductions made from
w.e.f. 01.04.2018) 01.04.2018 onwards.
•FRT department, Corporate
Centre will remit such TDS
centrally for whole Bank.
vi Data Reporting in a & b Branches are a.Branches have to feed Deductee
TRS feeding data in TRS. data in TRS
a.Deductee Data b.Since remittance is made
b.Challan centrally, Branches not required to
Data & mapping feed challan details & mapping
with deductee thereof.

10. Roles and Responsibilities with respect to Source Stream (i.e.,CBS, VPS,
CPPC and HRMS)
1) Ensure correct PAN no. is available in the source system
The Teller has to ensure that the data in the source system in respect of PAN of
the Customer, Vendor, Pensioner and Employee is correct and validated from
the NSDL website.

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2) Ensure proper data entry in the source system
The responsibility to furnish correct data in the source stream lies with the Teller
only. For correct reporting of tax amount deducted, it is important that the data
entry in all the source system is correct. Any mistake in this may lead to incorrect
remittance of tax to the government or passing of incorrect tax credit to the
Customer, Vendor, Employee or Pensioner.

3) Ensure correct data entry with respect to Form 15G/H

Ensure that the Form 15G/H is received in the Central TAN only. Ensure that the
correct values are given while generation of Form 15G/H in the system,
particularly amount mentioned in Column No. 17 of Form 15G and column 16 of
Form 15H in CBS/VPS. Further, it has also to be ensured that the Form 15G/H
received from the customer is entered in the system on the same day as any
delay would lead to deduction of tax.

4) Ensure correct data entry with respect to Form 15G/H

Ensure that the Concession/ Exemption Certificates received contain Central
TAN applicable to that stream. Further, it has also to be ensured that the
certificate received from the customer is entered in the system on the same day
as any delay would lead to incorrect deduction of tax.

5) Flagging of per se exempt customers in CBS and VPS

Due care has to be taken that customers where no TDS is required to be
deducted (e.g., Govt, Mutual Fund, Insurance co. etc.) is selected as “N” in the
TDS Applicable in the CBS/ VPS and no such account remains un-flagged in the
branch. For detailed instructions, please refer E-Circular No. CFO/FRT-
TAX/11/2015-16, dated 29.03.2016.

LET US SUM UP

The following payments are subjected to TDS

 Interest on securities [Section 193];
 Interest other than Interest on securities [Section 194A];
 Payment/Credit to Contractors/sub Contractors [Section 194C];
 Commission, brokerage etc. [Section 194 H];
 Rent [Section 194 I];
 Fees for professional or technical services or royalty [Section 194J];
 Transfer of immovable property [Section 194IA];
 Interest [other than NRE/FCNR Ac] & any other payments made to non-residents,
which are taxable under Income Tax Act [Section 195];
 Any other payments liable for TDS.

Page 20 of 77
When to deduct Tax:
TDS is to be deducted at the time of: i. Credit of such sum to the account of the
payee; or ii. Payment thereof; or Crediting such sum to any account in the books of
accounts whichever is earlier.

Form 15G/15H:
i. Individual (of less than 60 years of age) where the amount of the income
(individually or in aggregate) credited or paid or likely to be credited or paid during
the concerned financial year is up to Rs.2,50,000/- and submit Fort 15G.ii.Resident
senior citizen person (60 years or more anytime during the previous year) can
furnish similar undertaking in Form 15H irrespective of the interest amount and rent.
amount paid or credited or likely to be paid or credited during the financial year.

Responsibilities/ Obligations of deductor pertaining to TDS compliance:

To correctly deduct tax at source, to remit the amount deducted and to file the
returns(Under the centralised environment, TDS will be remitted centrally at whole
bank level and the TDS statements-Form 24Q, 26Q & 27Q will be filed at Central
level )

Consequences for noncompliance of TDS provisions:

In case of failure to deduct whole or part of TDS, the deductor is liable to pay simple
interest @ 1% under section 201(1A) for every

New System for TDS Centralisation - TDS Reporting System (TRS)

As a move towards centralization of TDS returns of the Bank, a new tool TDS
reporting System (TRS) is developed to manage TDS deducted by the various
source systems.

CHECK YOUR PROGRESS

1.TDS will be applicable when amount of commission/brokerage exceeds Rs.---

a. 5000
b. 10000
c. 12000
d. 15000

2.Form 15G/H obtained by the branch will be retained at the branch for how
many years?
a. 2
b. 3
c. 7
d. 9

Page 21 of 77
3.Up to what amount, TDS is not applicable on interest on deposit, in case of
senior citizen ?
a. 25000
b. 10000
c. 50000
d. 100000

4. In case of payment for hiring professional and technical services, TDS is

applicable only when amount exceeds Rs.-------- in a financial year.
a. 10000
b. 20000
c. 30000
d. 40000

5.Who has the responsibility of filing TDS returns ?

a. Branch
b. Circle
c. Corporate Centre
d. Region



Page 22 of 77
 Chapter-3 :Banking Codes And Standards Board Of India
(BCSBI)
Importance of Customer Service

“A customer is the most important visitor on our premises. He is not dependent on

us. We are dependent on him. He is not an interruption in our work. He is the
purpose of it. He is not an outsider in our business. He is part of it. We are not doing
him favor by serving him. He is doing favor by giving us opportunity to do so.

…………….Mahatma Gandhi

About Banking Codes and Standards Board Of India (BCSBI)

BCSBI was set up by RBI in 2003, in terms of the Tarapore Committee

recommendations. The code of Bank’s commitment to customer was first evolved in
2006.

BCSBI (Banking Codes and Standards Board of India) is an independent and

autonomous institutions. It was set up to monitor and ensure that the Banking
Codes and Standards voluntarily adopted by the banks are strictly adhered while
delivering their services. BCSBI has been registered as a separate society under the
Societies Registration Act, 1860

This is a Code of Customer Rights, which sets minimum standards of banking

practices. The Bank will follow as a member of BCSBI while dealing with individual
customers. It provides protection to customers and explains how a member bank is
required to deal with customers in its day-to-day operations.

The Code does not replace or supersede regulatory or supervisory instructions of the
Reserve Bank of India (RBI) and we will comply with such instructions / directions
issued by RBI from time to time.

RBI strongly felt that in discharging the duty to the customers, bankers would need to
make an unequivocal commitment in serving the customers and more so by binding
themselves voluntarily to a set of codes and procedures.

While banks are making efforts to offer varied services to the customers, we need to
understand the importance of benchmarking of such services.
BCSBI has evolved two codes in collaboration with the Indian Banks' Association
(IBA):
I. Code of Bank’s Commitment to Customers
II. Code of Bank’s Commitment to Micro and Small Enterprises

These codes were last updated in January 2018 and the latest copy of the codes can
be found at www.bcsbi.org.in

Page 23 of 77
Membership:
Various banks are members of BCSBI, such as:
• Scheduled Commercial Banks
• Regional Rural Banks
• Urban Co-Operative Banks
• Small Finance Banks

Key Commitments:
Important rights of the customer are covered under the BCSBI Code, which are:
• Right to fair treatment
• Right to transparency, fair and honest dealing
• Right to suitability of services
• Right to privacy
• Right to grievance redressal and compensation

Functions:
The functions of BCSBI cover three areas, which are:
• It ensures bank’s commitment to minimum standards of service to individual
customers in relation to products and services offered by the bank.
• It protects individual customers in their day to day operations
• It persuades member banks to be voluntarily compliant to the code

Applicability of the code:

The Code is applicable to different products and services offered by banks, such as:
• Deposits
• Loans and advances
• Payments
• Cards
• Third party products
• Digital Products
• Miscellaneous services

Provisions of the Codes:

Time lines are laid down in the Codes for certain services/functions of banks, which
are:
• Closure of accounts – 3 working days
• Transfer of accounts – 3 working days
• Issue of duplicate DDs – 14 days
• Customer complaint redressal – 30 days
• Settlement of deceased customer’s accounts – 15 days
• Choice of changing type of account – 14 days
• Documents/Securities/Title deeds return on closure of loan accounts – 15 days

Page 24 of 77
 Information – Transparency:
It is mandatory under the BCSBI guidelines for banks to maintain transparency in
their dealings with customers through different channels, such as:
• Notice Board in the branch
• Contacting the branch or Helplines
• Bank website
• Asking the designated staff / help desk
• Referring to the tariff schedule at the branch / website

Monitoring the Code of Compliance:

The role of BCSBI in monitoring the compliance of banks with the guidelines is
clearly defined by:
• Ensuring a Code Compliance officer at each Controlling office above the level of
the branch
• Obtaining an annual statement of compliance
• Visiting branches of member banks to verify code implementation
• Studying the customer complaints
• Analyzing orders from Ombudsman to find any service deficiencies

How you can involve with BCSBI codes?

• As an employee at branch level, you can comply with BCSBI Codes in all areas of
branch functioning, by:
• Ensuring a Help desk/Helpline at the branch
• Ensuring the display of your branch name and contact number of the Code
Compliance Officer
• Displaying the name and address of the Banking Ombudsman
• Customers need to be treated with utmost care so that they are not forced to
resort to complaints. As an employee of the bank, be aware of all the products and
services of the bank so that you can engage with the customers appropriately and
be aligned with BCSBI guidelines.

LET US SUM UP
BCSBI (Banking Codes and Standards Board of India) is an independent and
autonomous institutions. BCSBI set up to monitor and ensure that the Banking
Codes and Standards voluntarily adopted by the banks are strictly adhered while
delivering their services. It provides protection to customers and explains how a
member bank is required to deal with customers in its day-to-day operations
• The central objectives of these Codes are to: Promote good banking practices;
Foster confidence in the banking system; Increase awareness of customers and to
enhance customer protection; Set up minimum standards; Increase transparency;
Achieve higher operating standards; Promote a cordial banker-customer relationship;
Promote safe and fair customer dealings in case of banking in a digitized
environment
• Important rights of the customer covered under the BCSBI Code are: Right to- fair
treatment; transparency, fair and honest dealing; suitability of services; to privacy;
grievance redressal and compensation

Page 25 of 77
 CHECK YOUR PROGRESS

Q1. Is BCSBI a forum for redressal of individual grievances?

(Yes/No)

Q2. Does the Code replace or supersede regulatory or supervisory

instructions of the Reserve Bank of India (RBI)?
(Yes/No)

Q3. Member banks of the board have voluntarily agreed to abide by the
Provisions enumerated in the codes which have been drawn up ----
a) For the benefit of Banks
b) For the benefit of customers
c) To satisfy RBI
d) In compliance with court orders

Justification: Banks have voluntarily agreed to abide by Code of Bank’s

Commitment to Customers

Q4.There are three codes enumerated by BCSBI.

(True or False)

Justification; There are only two codes which are:

i) Code of Bank’s Commitment to Customers
ii) Code of Bank’s Commitment to Micro and Small Enterprises

Q5. Whether services related to Govt. transactions come under purview of

BCSBI?
(Yes/No)

Q6. Whether BCSBI code apply on the electronic transactions i.e. RTGS, NEFT,
IMPS, UPI etc.?
(Yes/No)

Q7.Which one of the below mentioned is the valid statement on the part of a
customer;
a) Allow anyone else to use your card, PIN, password etc.
b) Write down your PIN or password;
c) Save your mobile banking login/password in your phone
d) None of the above

Page 26 of 77
Q 8. If we plan to close our branch we will give to the customer ;
a) Three months notice
b) Four months notice
c) Fifteen days notice
d) One month notice

Q.9 BCSBI stands for:

a) Banking Copy and sub-Standards Board of India
b) Banking Codes and Standards Board of India
c) Banking Core and Standards Board of India
d) None of the Above

Q.10 BCSBI is:

a) Government Body
b) Constitutional body
c) An independent and autonomous institution
d) All of the above





Page 27 of 77
 Chapter-4 :Customer Service Guidelines

Introduction
Customer service has great significance in the banking industry. The banking system in
India today has perhaps the largest outreach for delivery of financial services and is
also serving as an important conduit for delivery of financial services. While the
coverage has been expanding day by day, the quality and content of dispensation of
customer service has come under tremendous pressure mainly owing to the failure to
handle the soaring demands and expectations of the customers.

The vast network of branches spread over the entire country with millions of customers,
a complex variety of products and services offered, the varied institutional framework –
all these add to the enormity and complexity of banking operations in India giving rise to
complaints for deficiencies in services. This is evidenced by a series of studies
conducted by various committees such as the Talwar Committee, Goiporia Committee,
Tarapore Committee, etc., to bring in improvement in performance and procedure
involved in the dispensation of hassle-free customer service.

Reserve Bank, as the regulator of the banking sector, has been actively engaged from
the very beginning in the review, examination and evaluation of customer service in
banks. It has constantly brought into sharp focus the inadequacy in banking services
available to the common person and the need to benchmark the current level of service,
review the progress periodically, enhance the timeliness and quality, rationalize the
processes taking into account technological developments, and suggest appropriate
incentives to facilitate change on an ongoing basis through instructions/guidelines.

Broadly, a customer can be defined as a user or a potential user of bank services. So

defined, a ‘Customer’ may include:
 a person or 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, and
 any person or entity connected with a financial transaction which can pose
significant reputational or other risks to the bank, say, a wire transfer or issue of
a high value demand draft as a single transaction.

Page 28 of 77
Policy for general management of the branches
Banks' systems should be oriented towards providing better customer service and they
should periodically study their systems and their impact on customer service. Banks
should have a Board approved policy for general management of the branches which
may include the following aspects: -
a. providing infrastructure facilities by branches by bestowing particular attention to
providing adequate space, proper furniture, drinking water facilities, with specific
emphasis on pensioners, senior citizens, disabled persons, etc.
b. providing entirely separate enquiry counters at their large / bigger branches in
addition to a regular reception counter.
c. displaying indicator boards at all the counters in English, Hindi as well as in the
concerned regional language. Business posters at semi-urban and rural branches
of banks should also be in the concerned regional languages.
d. posting roving officials to ensure employees' response to customers and for
helping out customers in putting in their transactions.
e. providing customers with booklets consisting of all details of service and facilities
available at the bank in Hindi, English and the concerned regional languages.
f. use of Hindi and regional languages in transacting business by banks with
customers, including communications to customers.
g. reviewing and improving upon the existing security system in branches so as to
instil confidence amongst the employees and the public.
h. wearing on person an identification badge displaying photo and name thereon by
the employees.
i. Periodic change of desk and entrustment of elementary supervisory jobs.
j. Training of staff in line with customer service orientation. Training in Technical
areas of banking to the staff at delivery points. Adopting innovative ways of
training / delivery ranging from job cards to roving faculty to video conferencing.
k. visit by senior officials from Controlling Offices and Head Office to branches at
periodical intervals for on the spot study of the quality of service rendered by the
branches.
l. rewarding the best branches from customer service point of view by annual
awards/running shield.
m. Customer service audit, Customer surveys.
n. holding Customer relation programmes and periodical meetings to interact with
different cross sections of customers for identifying action points to upgrade the
customer service with customers.
o. clearly establishing a New Product and Services Approval Process which should
require approval by the Board especially on issues which compromise the rights of
the Common Person.
p. appointing Quality Assurance Officers who will ensure that the intent of policy is
translated into the content and its eventual translation into proper procedures.

Page 29 of 77
The Master Circular on Customer Service consolidates Bank's instructions in some
important areas that affect customer service. The awareness of the instructions will help
improve the level of service at branches and also enable branches to respond to
customers promptly and positively.

The Customer Rights Policy enshrines basic rights of the customers of the banks
regulated by the Reserve Bank of India. It spells out the rights of the customer and also
the responsibilities of the bank. The Policy applies to all products and services offered
by the bank or its agents, whether provided across the counter, over phone, by post,
through interactive electronic devices, on internet or by any other method.

Right to Fair Treatment

Both the customer and the financial services provider have a right to be treated with
courtesy. The customer should not be unfairly discriminated against on grounds such
as gender, age, religion, caste and physical ability when offering and delivering financial
products.

In pursuance of the above Right, bank will -

 Promote good and fair banking practices by setting minimum standards in all
dealings with the customers;

 Promote a fair and equitable relationship between the bank and the customer;

 Train bank staff attending to the customers, adequately and appropriately;

 Ensure that staff members attend to customers and their business promptly and
courteously;

 Treat all customers fairly and not discriminate against any customer on grounds
such as gender, age, religion, caste, literacy, economic status physical ability, etc..
Bank may, however, have special schemes or products which are specifically
designed for members of a target market group or may use defensible,
commercially acceptable economic rationale for customer differentiation. Bank may
also have schemes or products as part of an affirmative action such as for women
or backward classes. Such schemes / products will not tantamount to unfair
discrimination. The rationale for such special schemes or terms will be explained by
bank wherever required.

 Ensure that the above principle is applied while offering all products and services.

 Ensure that the products and services offered are in accordance with relevant laws
and regulations.

 While it shall be the endeavour of the bank to provide their customers with hassle
free services and fair treatment, bank would expect their customers to behave
courteously and honestly in their dealings with the bank.

Page 30 of 77
 It shall also be the bank’s endeavour to encourage their customers to approach the
bank’s internal grievance redressal machinery and approach alternate fora after
exhausting all their remedies under bank’s internal grievance mechanism.

Right to Transparency, Fair and Honest Dealing

The financial services provider should make every effort to ensure that the contracts or
agreements it frames are transparent, easily understood by, and well communicated to
the common person.

The product’s price, the associated risks, the terms and conditions that govern use over
the product’s life cycle and the responsibilities of the customer and financial service
provider, should be clearly disclosed.

The customer should not be subject to unfair business or marketing practices, coercive
contractual terms or misleading representations. Over the course of their relationship,
the financial services provider cannot threaten the customer with physical harm, exert
undue influence, or engage in blatant harassment.

Ensure that all terms and conditions are fair and set out the respective rights, liabilities
and obligations clearly and as far as possible in plain and simple vernacular;

Most Important Terms and Conditions (MITC) associated with the product or service will
be clearly brought to the notice of the customer through Bank’s website, welcome kits
and sanction letters as applicable for the products I services. In general, it will be
ensured that such terms will not inhibit a customer’s future choice.

Provide information on interest rates, fees and charges either on the Notice Board in
the branches or website or through help-lines or help-desk and where deemed
appropriate the customer will be informed directly;

Display the tariff Schedule on their website and a copy of it will be made available at
every branch on demand from the customer. Also will display in its branches a notice
about the availability of the Tariff Schedule at the branch;

Give details, in their Tariff Schedule, of all charges, if any, applicable to the products
and services chosen by customer;

Inform the customer of any change in the terms and conditions through a letter or
Statement of Account, SMS or email or on Bank’s website www.sbi.co.in or as agreed
by the customer, at least one month prior to the revised terms and conditions becoming
effective;

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Ensure that such changes of terms and condition as stated above are made only with
prospective effect after giving notice of one month. If the bank has made any change
without giving such notice which is favorable to the customer, it will notify the change
within 30 days of such change. If the change is adverse to the customer, prior notice of
minimum 30 days will be provided and the customer may be provided options, to close
the account or switch to any other eligible account without having to pay the revised
charge or interest within 60 days of such notice;

Provide information about the penalties leviable in case of non-observance / breach of

any of the terms and conditions governing the product / services chosen by the
customer;

Display on Bank’s website the Banks’ Policies on Deposits, Cheque Collection,

Grievance Redressal, Compensation and Collection of Dues and Security
Repossession;

Make every effort to ensure that staff dealing in a particular product is properly trained
to provide relevant information to customers fully, correctly and honestly;

Ensure to communicate to the applicant within a reasonable time period as decided by

the bank about the acceptance / non-acceptance of applications submitted for availing a
product / service. Such period will be notified in the bank’s website and also in the
application of the particular product or service.

Communicate unambiguously the information about-

 discontinuation of particular products,

 relocation of their offices

 changes in working hours

 change in telephone numbers

 closure of any office or branch

with advance notice of at least 30 days through Bank’s website, notice board at
branches, digital signage systems etc. Also affirms that disclosure of information is an
on-going process through the life-cycle of the product / relationship and will be diligently
followed by them. Ensure to use all possible channels of communication, including web-
site, to ensure that information on all changes are made known to the customer upfront.

Advise the customer at the time of selling the product of the rights and obligations
embedded in law and/or banking regulation including the need to report any critical
incidents that the customer suspect, discover or encounter.

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The bank’s staff members shall, when approached by the customer for availing a
product or service, provide all relevant information related to the product / service with a
view to enable the customer to make an informed decision.

Not terminate a customer relationship without giving reasonable or contractual prior

notice to the customer.

Assist the customer in all available ways for managing his/her account, financial
relationship by providing regular inputs in the bank’s realms.

Ensure that all marketing and promotional materials are clear and not misleading and
as far as possible in regional language pertaining to the region/ area also.

Not threaten the customer with physical harm, exert influence or engage in behavior
that would reasonably be construed as unwarranted harassment. Ensure adherence
only to the normal appropriate business practices.

Right to Suitability

The products offered should be appropriate to the needs of the customer and based on
an assessment of the customer’s financial circumstances and understanding.

In pursuance of the above Right, the bank will -

Ensure that it has a Board approved policy for assessing suitability of products for
customers prior to sale of third party products.

Endeavour to make sure that the product or service sold or offered is appropriate to the
customer’s needs.

Sell third party products only if it is authorized to do so, after putting in place a Board
approved policy for marketing and distributing third party financial products.

Not compel a customer to subscribe to any third party products as a quid-pro-quo for
any service availed from the bank.

Right to Privacy

Customers’ personal information should be kept confidential unless they have offered
specific consent to the financial services provider or such information is required to be
provided under the law or it is provided for a mandated business purpose (for example,
to credit information companies). The customer should be informed upfront about likely
mandated business purposes. Customers have the right to protection from all kinds of
communications, electronic or otherwise, which infringe upon their privacy.

SBI's policy on customer grievances redressal is based on the following principle:

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 ‘The customer is the focus of the Bank's products, services and people. The Bank's
business growth depends entirely on the satisfaction of customers with what the Bank
offers them. A suitable mechanism must therefore exist for receiving and redressing
customer grievances courteously, promptly and satisfactorily. Any mistake made by the
Bank should be rectified immediately. The details of grievances redressal mechanism
must be in the domain of public knowledge'.

The above principles incorporated in the Bank's policy of grievances redressal.

Grievances relating to Branch transactions:

A. In case of any difficulty in transactions, the customers may approach the Service
Manager at the Branch or the Customer Relations Executive or the Branch Manager,
who will ensure that the customers' Banking needs are attended to. However, if this
does not happen, customers may demand the complaint book, which will be available in
all Branches, and lodge a written complaint. A copy of the complaint shall be returned to
customer with an acknowledgement of receipt. The Branch shall make efforts to ensure
that the redressal of the complaint takes place expeditiously and in any case within a
maximum period of three weeks. If for any reason the Branch is unable to redress the
grievance within three weeks, the customer will be informed of the reasons and the
action taken for early redressal. The complaint entered in the complaint book must be
entered in CMS and complaint number should be conveyed to customer, latest by SMS.

In case the customer is unable to visit the Branch, he may lodge his complaint on
Alternate channels viz.
 Contact Centre toll free numbers 1800 425 3800, 1800 11 22 11 or 080-26599990
 SMS Unhappy channel by sending SMS ‘UNHAPPY' to number 8008202020.

The customers shall be given a unique complaint number which can be used by the
complainant for tracking his complaint status.

Customers can also send their complaints through email at [email protected].

Complaints lodged on these channels are forwarded to the Branches through web
based system for redressal as above. The complainant can also get the status of
redressal of his complaint directly from the Contact Centre by calling on the toll free
numbers as given above.

B. In case of difficulty with the Branch, or unsatisfactory reply in respect of complaint

lodged with the Branch/Alternate channel, the customer can approach the Assistant
General Manager [Regional Business office (RBO)] /General Manager (Network) of the
Local Head Office under whose administrative control the Branch functions. The contact
particulars of the officials can be obtained from the Branch or from the helpline numbers
at the concerned Local Head Office. The numbers will also be made available on the
Bank's website.

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C. The customers can also write to the Customer Service Department at the Local Head
Office under whose jurisdiction the Branch functions. The addresses and contact details
of the Customer Service Department of the Local Head Office will be made available at
the Branches. Customers may also obtain the same from our website as it is appended
with this policy.

D. A web-based Complaint Form will also be made available on the Bank's website for
customers to register their grievances online. On completing the particulars and
submitting the form, the customer will be given a unique ticket number which will enable
him to follow up on his grievance with the Branch/Local Head Office or the Corporate
Centre.

Instead of lodging a complaint in web based complaint form if a customer sends an

email to [email protected] or other mail addresses of executives it will be
reverted back to him/her by an automated system from the email ID [email protected]
to provide data in the web based complaint form so as to facilitate to get a ticket
number of the grievance and subsequent tracking of the status of complaint by the
complainant.

Escalation matrix for customer complaints

Within the overall maximum period of three weeks within which a complaint needs to be
redressed, there will be a prescribed escalation matrix for redressal of the complaints at
different levels in the organization. The matrix prescribes the time period for unresolved
complaints/ grievances not redressed to customers satisfaction to be escalated to
higher authorities. The escalation matrix for customer complaints is given below:
S.No. Lodging/ Escalation / Day of lodging/ Days available for
Auto Escalation of Escalation redressal (Within the
complaints maximum three weeks)
st
1 Branch 1 Day 10 days
th
2 Local Head Office 11 Day 5 days
3 Corporate Centre 16th Day 6 days

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 PROCESS FLOW OF CLAIM SETTLEMENT IN CASE OF ACCOUNTS OF
DECEASED CONSTITUENTS

WITH NOMINATION WITHOUT NOMINATION

Make Payment to Nominee

after due diligence
Without Legal With Legal
Representation representation
(Where there is
(Where there is no dispute among
dispute among legal heirs)
legal heirs)
As per Legal
Procedure

Settlement Amount upto Rs. 5 Lacs Settlement Amount above Rs. 5

Lacs

i) Production of Sureties may not be i) i) Claim Form signed by claimants.

insisted upon while obtaining ii) ii) Stamped Letter of Indemnity from claimant(s)
Letter of Indemnity. (COS 540) plus one Surety good for the amount or
ii) Revised Claim Format signed by two Sureties jointly good for the amount.
claimant(s) with declaration iii) Declaration in the Revised Claim Form
signed by:- regarding the legal heirs of the deceased has to be
a) One independent person well sworn as an Affidavit before the Judicial Magistrate
known to the family of the or Notary Public as per format COS-539,
deceased but unconnected with it (Annexure-B), from:-
and acceptable to the Bank OR
a)One independent person well known to the family
b) Any account holder of the Bank
of the deceased but unconnected with it and
known to the family of the
deceased but unconnected with it acceptable to the Bank OR
OR b)Any account holder of the Bank known to the
c) Any Govt. Official whose family of the deceased but unconnected with it OR
signature is verifiable by the Bank. c) Any Govt. Official whose signature is verifiable
iii) iii) Stamped Letter of Indemnity from by the Bank.
claimant(s). Any legal heir who has signed the Letter of
Disclaimer in favour of other legal heir(s) may stand
as Surety if he/she is independently good for the
amount of claim.

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 NOMINATION FACILITY

a) The nomination facility is available on Savings Bank Accounts and the account
holders are advised to avail of this facility for smooth settlement of claim by legal
heirs in unforeseen circumstances. Nomination can be made in favour of only one
nominee.
b) Nominations are made only in respect of deposits which is held in individual capacity
of the depositor and not in any representative capacity as a holder of an office or
otherwise. Accordingly, nomination in HUF accounts cannot be made.
c) In case they do not wish to make a nomination, this fact should be recorded on the
account opening form under their full signature. Sometimes, the customers opening
joint accounts with or without “Either or Survivor” mandate are dissuaded from
exercising the nomination facility. RBI has clarified that nomination facility is available
for joint deposit accounts also. In the case of joint accounts, the nominee’s right
arises only after the death of all the depositors.
d) The customer should be educated about the importance of having a Nominee to
his/her account. All New accounts opened should invariably, have a nomination and
efforts should be made to contact account holders, who have so far not nominated
any person, to do so on priority basis.
e) Whenever nomination facility is availed by a customer on any account, the fact has to
be indicated in his Passbook /Statement of account as a legend "Nomination
Registered" indicating the position regarding availment of nomination facility so that,
in case of death of the account holder, the relatives can know from the Pass book
/Statement of Account that the nomination facility has been availed of by the
deceased depositor and initiate suitable action.
f) An acknowledgement of Nomination Form submitted, with Nomination number
generated by the System, should be sent to the account holder. Such
acknowledgement should also be given for cancellation and / or variation of the
nomination to all the customers irrespective of whether the same is demanded by the
customers. Nowadays, LCPCs issue these letters.
g) RBI has advised banks to indicate the name of the nominee in the Pass Book/
Statement of account/TDR/STDR advices in case the customer is agreeable to the
same for the eventual help/guidance of the customers/nominees. Accordingly, the
customer should indicate for the same in the account opening form.
h) Relationship Managers / other Points of customer contact shall properly educate
all the customers they come in contact with, about the existence of nomination
facility.

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LET US SUM UP

Banks' systems should be oriented towards providing better customer service and they
should periodically study their systems and their impact on customer service.
The Master Circular on Customer Service consolidates Bank's instructions in some
important areas that affect customer service. The awareness of the instructions will help
improve the level of service at branches and also enable branches to respond to
customers promptly and positively.

The Customer Rights Policy enshrines basic rights of the customers of the banks
regulated by the Reserve Bank of India. It spells out the rights of the customer and also
the responsibilities of the bank.

Right to Fair Treatment

Both the customer and the financial services provider have a right to be treated with
courtesy.

Right to Transparency, Fair and Honest Dealing

The financial services provider should make every effort to ensure that the contracts or
agreements it frames are transparent, easily understood by, and well communicated to
the common person. Ensure to communicate to the applicant within a reasonable time
period as decided by the bank about the acceptance / non-acceptance of applications
submitted for availing a product / service. Such period will be notified in the bank’s
website and also in the application of the particular product or service.
Communicate unambiguously the information about-
 discontinuation of particular products,
 relocation of their offices
 changes in working hours
 change in telephone numbers
 closure of any office or branch

with advance notice of at least 30 days through Bank’s website, notice board at
branches, digital signage systems etc.

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CHECK YOUR PROGRESS

1. Which of the following is not the committee set up for customer service?
a. Talwar Committee c. Tandon Committee
b. Goiporia Committee d. Tarapore Committee

2. Indicator boards at all the counters should be displayed in ?

a. English c. Regional Language
b. Hindi d. All the above

3. How many days are available at branch for redressal of complaint?

a. 5 days c. 7 days
b. 10 days d. 15 days

4. How many days are available at LHO for redressal of complaint?

a. 5 days c. 7 days
b. 10 days d. 15 days

5. How many days are available at Corporate Centre for redressal of

complaint?
a. 5 days c. 6 days
b. 7 days d. 1 days




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 Chapter-5:Operational Risk Management
Let us begin the chapter with Risk – what is risk? Risk is defined as A situation involving
exposure to danger. Banks have to take risk all the time with the money that does not
belong to them. Banks take risk with depositors’ money. That does not mean the
investors’ money is not prone to risk. There are different types of risk which the Banks
face at all times-
• Credit Risk – risk of default
• Market Risk – due to movement in market prices
• Operational Risk – risk of loss due to inadequate or failed internal processes, people
and systems or from external events.
• Liquidity Risk – bank not being able to have enough cash to carry out its day to day
operations.
• Business Risk – arising from a bank’s long-term business strategy
• Reputational Risk – risk of damage to a bank’s image and public standing due to
some action taken by the bank or negative publicity leading to public’s loss of
confidence in the bank
• Systemic Risk – in Finance it is the risk of collapse of entire financial system
• Moral Hazard – tendency to or a willingness to take a high-level risk that may not be
economically sound.
• Other risks – Legal, Country

Risk Management means - The process of analyzing exposure to risk and determining
how to best handle such exposure.
Operational Risk occurs in all day to day banking activities and in all bank departments
(e.g. Nick Leeson – Barings Bank collapse). Operational Risk includes
1. People Risk – incompetency, wrong posting, misuse of powers
2. Information Technology Risk – failure of IT system, Hacking, programming errors
etc.
3. Process Related Risk – errors in information processing, inaccuracy of input or
output
4. Commodity Risk – adverse movement in investment in agri commodities,
industrial commodities and energy commodities.
Operational Risk is measured by Risk Map, Loss Distribution Approach, Scenario
Analysis, Scorecards.
Basel norms suggest The Basic Indicator approach, The Standardized Approach and
the Advanced Approach through allocation of capital to not only measure the risk but

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also to have a system to manage the risk. (This is beyond the scope of this chapter)
Bank has a Risk Management Department which looks after management of risks
especially credit and operational. Bank also has an Operational Risk Policy which has
been last updated on November 2018 version 12.0. One can access all documents
related to Operational Risk Management through info.sbi→Departments 2→Risk
Management Department.
However, in the present chapter we have tried to cover critical areas related to branch
that one has to oversee. However, even these are not complete and one needs to refer
to various circulars and policies of the Bank to keep abreast of latest guidelines /
instructions in order to control Operational Risk.

A. OVVR – Online Voucher Verification Report and New VVQ (Voucher

Verification Queue)

(Circular No. : NBG/BOD-GB/87/2014 – 15 dated 17-12-2014 and Circular No.:

R&DB/BOD-GB/128/2018 – 19 dated 28-02-2019)

The transactions posted in CBS are subject to Maker & Checker with the exception of
transactions completed under the passing powers vested with SWO/Teller. Almost all
vouchers posted from front end and also posted by system teller, are covered under the
present OVVR system. Transactions completed at SWO/Teller level remain unverified
till checking in OVVR. The OVVR system requires that all such transactions that have
been put through the CBS should be verified online by random allotment of VVR online.
This is required to ensure that all transactions are monitored and no fraudulent entry
(which does not have a voucher) goes through the system. Auto generated transactions
e.g. ATM transactions need not be checked through OVVR.

There are six main menus available under the functionality, namely
i) Voucher Allocation – (Screen -60652)
ii) Allocation Enquiry / Re-allotment (Screen- 60655, 60656)
iii) Dashboard (Screen- 60666, 60667, 60675)
iv) Acceptance/ Verification, (Screen-, 60657, 60658, 60663)
v) Individual Voucher (for enquiry), (Screen- 60665)
vi) Voucher Verification Enquiry. (Screen-60668)

Voucher Allocation: (Screen-60652)

• Transaction Tellers / Voucher Checkers are randomly allotted by the System to Online
VVR Checkers (Tellers having capability equal to 3 and above i.e. Senior Assistants
and all Officers for checking of transactions. The allotment for checking can be
confirmed by designated officers.

Voucher enquiry / Re-allotment:

Re-allotment can be done at any point of time, as desired by Allotting officer through
Allocation Enquiry /Re-allotment process.

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Dashboard
Dashboard option is provided to branches for control purpose, which provides the latest
position/ status of Voucher Verification of all the vouchers which are allocated to Online
VVR Checkers posted at the branch for a particular date.

Acceptance / Verification :( Screen-60658, 60657,60663)

On selecting the verification options, Acceptance/Verification screen displays all the
transactions pertaining to vouchers posted by the Transaction Tellers allotted to the
VVR Checkers who have logged in and allow them to verify and add verification status
of the Vouchers and their comments. new column with following options has been
created in screen No. 060663 (Online Voucher Verification)
 Verified & Accepted
 Verified & Rejected.
Teller has to tick either of two. If ticked on Verified & Rejected, a new screen no.
60664 (voucher verification with Remarks) will be opened, teller has to record reasons
for rejection. In case of missing voucher, checking official can click on “Fetch” button, a
pop-up screen no. 60672 will be displayed with details of missing voucher. Print is to be
taken by putting tick in the box and click on print. This is to be signed by Maker for
correctness & posting and by Checker for authentication

Individual Voucher: Menu option provides for search/verification of individual

voucher/transaction

Voucher Verification Enquiry: Menu option provides back dated enquiry of status of
vouchers of a particular VVR Checker for a particular period.
Exception Report ‘ID-DB-0008 (Voucher Verification Pending Report)’ is generated by
CBS and placed in branch folder. Pending Vouchers are to be attended immediately
along with identification of reasons for pendency.

Under the new VVQ – following has been introduced and covered
1. All BGL Debit Vouchers irrespective of amount, are now subject to Maker
Checker concept,
2. All Batch posting are now cleared by Checker. Vouchers in the batch will be
passed/posted only on authorisation of the Batch by an officer.
3. All BGL transactions (with or without Maker/Checker irrespective of the amount).
4. All transactions which are performed by Teller with capability level 7 and above.
5. All transaction directly posted in CBS by Maker within passing powers as per
their capability level
6. BGL VVR for BGL transactions is to be checked by BM/Designated Officer on
T+1 basis under GEN Category of VV & VM.
7. All Vouchers in ‘New VVQ’ are to be checked on same day i.e. T+0 basis with no
exception.

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B. Cheque Payment – Through clearing or Over the Counter
(Circular No.: R&DB/BOD-GB/79/2018 – 19 dated 17-10-2018)
Cheques are defined under the Negotiable Instruments Act 1881. As part of
development of security and speed under the payments system, the Bank has issued
CTS-2010 standard cheques which may be presented for payment through clearing
under National Automated Clearing House (NACH) system or over the counter for
payment (cash / transfer).
The Physical verification of the Cheque shall be done to ensure that:
1. Collection is being made as per apparent tenor, and no tampering is visible to the
naked eye. Physical feel of the instrument should not be at variance with
standard paper.
2. No change / correction is there in payee’s name, courtesy amount (amount in
figures) or legal amount (amount in words) etc. (Cir No. NBG/ S&PSP/ 7/2010-11
dated 13/08/2010). The operating staff must ensure that cheques with alterations
/ corrections are not accepted for presentation in CTS clearing and payment.
3. Various fields in the cheque are located as per CTS-2010 standard. Sample
cheque leaf with mandated field placement is given in annexure to Circular No.
NBG/BOD-GB/45/2010-11 dated 06/10/2010
4. Account number is printed in the appropriate box/specified space
5. Security features viz; Bank’s logo in Ultra Violet ink is visible through UV lamp
6. Watermark with word “CTS-INDIA” is visible while holding against light.
Watermark is in oval shape. Each cheque must hold at least one full watermark.
7. “VOID” pantograph on left side bottom just above MICR Band with
hidden/embedded words “COPY or “VOID”. This will be clearly visible in
photocopies and scanned colour images of the cheque.
8. All cheques have micro lettering in place of line for payees’ name and amount in
words. Micro lettering of cheque can be verified through magnifying glass.
9. All cheques have new Rupee symbol
10. All cheques carry Printer’s name along with printing “CTS-2010” for establishing
CTS-2010 compliance
11. Nine digit MICR code in bottom of the cheque indicating City code (by first three
digits), Bank code (by middle three digits) and Branch code (by last three digits).

Following scrutiny before payment in addition to physical verification above:

1. Cheque is within validity period
2. Amount in words and figures match
3. Cheque leaf is from the cheque series issued to the customer
4. Drawer’s signature is available on the face of the cheque and tallies with the
specimen signature recorded with the Bank.
5. The instrument is duly discharged by the customer
6. All cheques above Rs.25000/- be subjected to fugitive ink / water droplet test to
ascertain the genuineness of the instrument
7. All cheques above Rs.50000/- be subjected to ultra violet lamp test to ascertain
the genuineness of the instrument. A stamp confirming such verification “UV

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 Lamp verified” should be affixed on back of the cheque and record of such
verification may be kept at the branch for verification at a later date
8. Customer is to be called before making payment of cheque for amount of Rs.
2.00 lakh and above, so as to ensure that the cheque presented has not been
stolen.
9. All cheques with reasons to doubt genuineness should be subjected to fugitive
ink/water droplet test and ultra violet lamp test, irrespective of amount
10. Discrete enquiries are to be made from the presenter of the cheque over counter
for payment, as to how he has received the cheque from the drawer/account
holder
11. In case of transfer or cash payment of an order cheque, scrutiny for proper
endorsement is to be done
12. Cheques crossed to specific bank must be paid only if presented by the specified
bank
13. Cheques crossed “Account Payee’ must be paid to the credit of Payee’s account
only
14. Multi City Cheques will be payable without any value cap at Home Branch
15. Following value caps are applicable for payment of Multi City Cheques at the
Non-Home Branches:
 For Saving Bank account of HNI/NRI, maximum value cap is Rs.50 lakhs
 For Saving Bank account of others, maximum value cap is Rs.10 lakhs
 For Current Account and CC account, maximum value cap is Rs.50 lakhs
 For Current Account CCPAP cheques, no maximum limit has been fixed.

C. Key Management
(Security Manual Volume-1, Security Department, SBI Corporate Centre)
1. The particulars of important keys, such as those pertaining to cash, valuables,
Lockers, Strong Room, Cash Safe and the room in which these are kept, etc.
must be entered in the standard Key Register.
2. Great care must be taken of all-important locks and keys.
3. The Controlling Authority’s prior permission must be obtained before making any
arrangements with the approved agency, either for replacement of any important
key(s) showing signs of serious wear or repair to any important lock(s).
4. All repairs to locks must be personally supervised by both the joint custodians
having joint control over the door / safe under repair.
5. The keys (other than the important keys mentioned above) of other receptacles /
cupboards, drawers etc. handled by different members of the staff should be
entered in a separate register for general record and control.
6. Whenever there is a change in the incumbency of a particular post handling the
set of keys, the incoming official will initial against each entry and also record the
date of his taking over the custody of the respective key(s). He will verify the
original keys taken over by him as also the duplicate keys relating to those keys,
kept with the designated branch for safe custody along with other duplicate keys
of the branch.

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7. Employees or other persons who are themselves not authorized to handle the
keys of the strong room / cash safes etc. must never be allowed to handle them
for any purpose whatsoever. Should this by any chance happen, the
circumstances must be immediately reported in detail to the Controlling Authority
so that necessary steps may be taken to safeguard the Bank’s interests.
8. When the keys of the strong room and other keys are kept in the personal safe of
the Cash Officer (or of the supervising official jointly in charge of the cash), keys
of the safe in which they are lodged must not leave his custody.
9. The two sets of keys of the strong room doors held by the joint custodians (viz.
the Supervising Official and the Cash Officer) should be retained overnight in
separate safes.
10. The supervising official jointly in charge of the cash, who is ordinarily provided
with a Fire and Burglar Resistance (FBR) safe outside the strong room, should
always keep his keys of the strong room doors (i.e. grille and the outer door) and
of the receptacles inside the strong room in the drawer of his safe and carry on
his person only the keys of the safe and the drawer.
11. At branches where a separate safe with a drawer is available with a senior
supervising official (other than the supervising official jointly in charge of the
strong room), the Cash Officer should keep his keys of the strong room doors
and of the receptacles inside the strong room locked in that drawer and retain its
key in his personal custody
12. The Senior Assistant (Cash) or any other member in the Cash Dept. rendering
assistance to the Cash Officer must not be allowed to handle Cash Officer’s set
of keys when the Cash Officer is on duty.
13. The assistance to be rendered by the Deputy Head Cashier to the cash officer
should not include handling of the cash officer’s keys of the Strong Room or of
the receptacles. This duty cannot be delegated
14. During office hours, the Strong Room Keys held by the joint custodians should
be kept locked in one of the drawers of the safe and not left in open shelves in
the safe, and the safe should be kept locked.
15. Custody of the keys of unrented lockers will be vested with the Branch Manager/
Divisional Manager/ Accountant/ Cash Officer/ designated supervising official.
The “Custodian” key may be held by the official-in-charge of the lockers.
16. Branch Manager/ Managers of Divisions/Deputy Managers of
Divisions/Accountant/ Officers-in-charge of sections will retain the original keys of
their respective sections/ departments overnight. At the beginning of each day
the original keys will be taken by the concerned supervising officials/Clerical Staff
from them, who will invariably return the keys at the end of the day.
17. The original Keys of Cash Officer’s Cubicle/ Cash Department Enclosure/ Desks
of Cashiers and Tellers will be retained with the Cash Officer overnight. Every
morning the keys will be handed over to the concerned cashier/ teller who will
invariably return the keys to the Cash Officer at the end of the day

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D. Inventory Management
1. Physical stock of all security forms should tally with registers and in VPIS
in CBS. Ensure that IOI, Cheque Book, Holograms (old if not destroyed),
Damaged / cancelled security are entered in the register and VPIS while
receiving and giving back. The receipt should be initialled by the teller and
the official.
2. The inventory should be in custody during the day
3. After banking hours the inventory should be handed back to the official
under initials of both.

E. Business Continuity Plan (BCP)

(Business Continuity Planning Policy – approved by Central Board on 22-01-
2019)
As part of Customer expectations, continuous availability of banking operations is an
absolute necessity for customer satisfaction and brand protection. The threat of
business disruptions arising from internal or external events such as disaster, human
error, cyber-attack, terrorism, software errors, or hardware failures contribute to the
need for a comprehensive Business Continuity Plan (BCP) for an effective Business
Continuity Management (BCM), which in essence is the preparedness of the
organization for managing disruptions and includes policies, standards and procedures
to ensure continuity, resumption and recovery of critical business processes, at an
agreed level and limit the impact of the disaster on people, processes, infrastructure
and systems. The BCP shall include both deterrent and preventive controls which
attempt to cover as many identifiable risks as possible. The objective is to cover as
much as possible of the residual risks. Some of the controls that shall be reviewed are
physical security, personnel, infrastructure (generators, UPS, electrical appliances, fire
suppression measures), software controls such as anti-virus, firewalls, intrusion
detection, backup and retention processes.

A current, verified call tree with multiple contact numbers (office, home, cell, personal e-
mail, close friends or relatives) for all staff members is a must. This is often a weak link
during an event because normal communication channels might be affected during an
outage. The Nodal Officers shall ensure that an updated Staff Call tree is maintained.
During the interruption of services, the staff might need to work outside of normal hours,
take on different duties and travel out of town. HR policy in this regard should be
communicated to all staff. Staff will also be trained about BCP.

F. Information Security
(Information Security Manual – IS department, CBD Belapur)
Information Technology has become integral part of the Operations in the Bank and as
such use of IT for bringing in operational efficiency is bound to increase. All employees
are end users of IT.

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Reserve Bank of India in its circular issued in April’2011 has categorically defined the
Roles and Responsibilities of end user.
 Maintaining confidentiality of log-in password(s)
 Ensuring security of information entrusted to their care
 Using bank business assets and information resources for management
approved purposes only
 Adhering to all information security policies, procedures, standards and
guidelines
 Promptly reporting security incidents to management
Information Technology (IT) Risk is one form of Operational Risk associated with the
use of IT in the Bank. IT related events like fraud, downtime, hacking, data leakage etc.
can potentially impact the bank business. We are the end users of IT and should be
aware how to safeguard ourselves and in turn the Bank from untoward IT related
incidents.

CIA Triad of Data and Services – Please always remember and follow this triad
 “Confidentiality” means information is accessible only to authorized personnel.
 “Integrity” means safeguarding the accuracy and completeness of information
and processing methods
 “Availability” means ensuring that authorized users have access to information
and associated assets as per commitment when required

Maintaining CIA in the true spirit is our collective responsibility

For IT security of your desktop / mobile / email / Internet etc , following minimum basic
but important practices should be followed (for details please refer to IS policy)
1. Always lock your desktop while leaving seat, whatever be the away time.
2. Do not create or copy documents or create shortcuts on the home screen of
desktop.
3. Do not attempt to uninstall or disable Anti-virus. Check that the latest version
Anti-virus and Virus Pattern are running on your desktop / PC / mobile phones
/ laptops / note pads / e-book reader / etc.
4. Active Directory disables USB & CD / DVD drive on PCs, never connect any
pen drive, dongle, data cards, cable internet, modem etc. to PC. Use of CD-
ROM, DVD is prohibited
5. Do not access or download personal music, video files etc on any office
device.
6. Get your desktops formatted/repaired by designated AMC service providers
under supervision of State Bank personnel only.
7. Do not attempt to fix the hardware or software related problems on your own.
It may make warranty / guarantee VOID
8. Do not install any software, freeware, shareware or application on their
desktop/laptop that is not authorized for State Bank’s business

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9. Take adequate measures for physical protection of mobile devices like not
leaving device unattended in public places or while travelling.
10. Loss of portable device should be reported immediately to the local police and to
the appropriate authority.
11. Laptops, if required to be left in the office at the end of the workday, shall be
locked in a secure manner
12. You are responsible for all activities originating from your User credentials.
Guard it!
13. Your Passwords should be strong, should not be easily guessable, should be
changed frequently (at least once in 90 days or if you suspect it has been
compromised) and should not be shared with anyone (not even with colleagues
and IT staff)
14. Never ask for passwords of others (including customers)
15. Don’t write your password, instead memorise it.
16. Browser’s facility “Remember my credentials” / “Remember Password” should
not be used. Although the browser might not be storing your password, but a
token that represents you is called as “cookie” which represents you and it gets
assigned to you. If this cookie is stolen, a malicious user could use that to log in
as you without knowing your password
17. Uncheck / keep blank the setting “Offer to save you web password” in Chrome’s
setting.
18. To disable remember password, in Internet Explorer, you can go to “Tools - >
Internet Options -> Contents-> AutoComplete Setting”. Uncheck “Forms” and
“User names and passwords on forms”.
19. There would be similar settings in other browsers which can be used to disable
such auto or remember features.
20. Various websites also offer to remember password. It is recommended to not opt
for it.
21. Use of Bank’s official mail account for personal purposes is discouraged.
22. You as the owner of the email account are fully responsible for the content of
email originated, replied or forwarded from your account to other users within or
outside the Bank.
23. Bank may intercept or disclose or assist in intercepting or disclosing Email
communications to ensure that email usage is as per Bank’s IS Policy. User
communications should not be considered private and do not send inappropriate
contents.
24. Confidential or secret information should be encrypted, or password protected
when transmitted over email.
25. Do not open / download attachments from emails that are appealing, or email is
from unknown sender or even the attachment is not expected from known person
/ official.
26. Do not access State Bank's email account from insecure internet connection like
open Wi-Fi, public hotspots, insecure cybercafé etc

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27. Promptly report all suspected security vulnerabilities that they notice with the
Email account to authorized personnel.
28. Archive emails file stored locally on the user’s machine should be protected by
password.
29. Please also go through the Bank’s Social Media Policy for rules / guidance
related to Social Media usage. Thumb rule will be to not discuss / share / forward
/ appreciate / criticise anything related to Bank (including internal instructions) on
social media that potentially may have a negative impact or harm the image of
the Bank.

How to identify a SPAM mail. – spam mails are malicious e-mails that may look
authentic and tempting but are sent mostly with the intention of defrauding the recipient
 Typically, spam email would have no email ID in “To” or “CC”
 As the spam is sent to billions of recipients, it would not be addressed specifically to
recipient / victim. Instead of Dear Sh. Makarand, it would address recipient as “Dear
SBI Customer”, “Dear Valued Customer” etc
 It would encourage the recipient to click on a Link or open an attachment which could
lead victim to Phishing Site or download virus, Trojan etc.

Please remember Bank has instructions in place for most of the Operational Risk areas
our responsibility and job are to follow them in letter and spirit. If Bank’s policy is not
available to cover any area, then it is advisable to be prudent in your approach keeping
in view the potential harm on Bank, if any.
It is also advisable to regularly go through Bank’s updated policies and e-circulars to
keep yourself abreast of the changes in rules and operational procedures.

LET US SUM UP
Risk is defined as A situation involving exposure to danger. Banks take risk with
depositors’ money. That means the investors’ money is also prone to risk. There are
different types of risk which the Banks face at all times, one of which is Operational
Risk.

Operational Risk occurs in all day to day banking activities and in all bank departments
(e.g. Nick Leeson – Barings Bank collapse). Operational Risk includes - People Risk,
Information Technology Risk, Process Related Risk and Commodity Risk.
Bank has a Risk Management Department which looks after management of risks
especially credit and operational. Bank also has an Operational Risk Policy which has
been last updated on November 2018 version 12.0.
The present chapter tries to cover critical areas related to branch that one has to
oversee.

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A. OVVR – Online Voucher Verification Report and New VVQ (Voucher Verification
Queue) - The transactions posted in CBS are subject to Maker & Checker concept
with the exception of transactions completed under the passing powers vested with
SWO/Teller. Almost all vouchers posted from front end and posted by system teller,
are covered under the present OVVR system. Transactions completed at SWO/Teller
level remain unverified till checking in OVVR. The OVVR system requires that all
such transactions that have been put through the CBS should be verified online by
random allotment of VVR online. This is required to ensure that all transactions are
monitored and no fraudulent entry (which does not have a voucher) goes through the
system. Auto generated transactions e.g. ATM transactions need not be checked
through OVVR.

B. Cheque Payment – Through clearing or Over the Counter - Cheques are

defined under the Negotiable Instruments Act 1881 and are commonly used for
banking transactions in India and abroad. As part of development of security and
speed under the payments system, the Bank has issued CTS-2010 standard
cheques which may be presented for payment through clearing under National
Automated Clearing House (NACH) system or over the counter for payment (cash /
transfer). The new standards require knowledge of what to see before making
payment of cheques in CBS.

C. Key Management – In banks we deal with money and data related to money.
Hence it is very important that everything is under proper lock and control of the
authorised personnel, not only during the banking hours but after the banking hours
as well. Therefore, in any given office of the Bank (including branches) there are
plethora of keys, which should be managed in such a way to minimise the
operational risk. Because office keys into the hands of unauthorised persons has
the potential to harm the bank at an unimaginable magnitude.

D. Inventory Management – in Bank we deal with security paper having safety and
special features. Any unaccounted security paper (Cheques / Drafts etc) may be
used in perpetrating a fraud against the bank and its customers.

E. Information Security - Information Technology has become integral part of the

Operations in the Bank and as such use of IT for bringing in operational efficiency is
bound to increase. All employees are end users of IT. Information Technology (IT)
Risk is one form of Operational Risk associated with the use of IT in the Bank. IT
related events like fraud, downtime, hacking, data leakage etc. can potentially
impact the bank business. We are the end users of IT and should be aware how to
safeguard ourselves and in turn the Bank from untoward IT related incidents.

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CHECK YOUR PROGRESS

1. How is Operational Risk defined?

2. What is covered under Operational Risk?
3. What is the cut off amount for using the water droplet method for genuineness of
the Cheque?
4. Should you divulge your password to your colleague, because you must reach
hospital in time to receive medical treatment for yourself?
5. Should you leave your official laptop on your table overnight in the office?




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 Chapter-6: Complaint Management
Complaint management is the key component of customer service. Listening to
customer complaints and resolving them promptly brings in immense benefits to any
organization. It helps one understand what is lacking in your products and services and
bring in improvements. Besides, a grievance, if promptly taken care of, makes a
customer loyal to the organization. Both of these are critical to a Bank like ours which is
facing new challenges in customer retention from banks as well as non-banks every
day.

Four types of Failures

Even with the best of efforts there can be some shortcomings or failures in providing
services. The types of failures, which cause complaints, can be of four types.

1. Service Failures: The complaint due to lack of services at the branches. The reason
can be:

a) Slow service
b) Unavailable service
c) Errors in service
2. Responses to Requests: The complaint arises due to the reasons related to the
response given to the customers against their requests. This includes:

a) Special needs
b) Special Preference
c) Customer Errors
d) Disruptive behavior by others

3. Unprompted Employee Action: The complaint arises due to the reasons related to
the unprompted actions of the employee. This includes:

a) Unusual action / behavior

b) Overstepping cultural norms
c) Insensitive to customer needs

4. Problematic Customer Behavior: The complaint arises due to the reasons related
to the behavior of the employees towards customers. This includes:

a) Misbehavior
b) Verbal and physical abuse
c) Breaking bank policies or laws
d) Grumbling customers

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If the customer is not satisfied with the services of a banker, what are the options before
him? The actions taken by the customer can be categorized in two.

1. Public Action
 Complain to the organization
 Complain to a third party e.g. Ombudsman
 Take legal action for redressal e.g. Consumer Protection Courts

2. Private Action
 Switch the banker
 Negative word of mouth publicity

There can be various reasons why a customer will complain and why a customer will
not complain. If the customer decides to complain, it maybe because of the following
reasons:

 To correct the problem

 Get emotional release from the frustration caused by the problem
 Solicit sympathy
 To get even with the organization/person by generating negative publicity
 Create an impression of being more intelligent and discerning

If the customer does not complain, it may be because of following reasons:

 Does not know to whom he must complain

 Lacks expertise i.e. how to complain
 Avoids confrontation
 Does not think it will do any good
 May doubt their own subjective evaluation
 May accept part of the blame

Whatever may be the reason of lodging or not lodging the complaint, the customer is
mainly focused on resolution of his/her problem. The paradox is that, customers do not
expect a problem free service.

They expect services where if there is a problem then it must be sorted out
expeditiously. Customers are likely to evaluate a firm higher if a mistake is made and
corrected, than had the service been delivered correctly the first time itself. (Customer
first).
leads to
Quick Resolution Customer Satisfaction

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Complaint Handling:

• Complaint Handling is an important area. Every organization must have an

effective complain handling/resolution system in place. The system will help in
identifying system related and people related failures. The staff of the
organization should be aware of such complaint handling/resolution mechanism.
• An effective complaint resolution system works as an efficient mechanism to
strengthen the satisfaction and loyalty of the customers.

Complaint Handling in SBI:

What is the complaint handling (registering and resolution) system in State Bank of
India?

1. Customer Oriented Open Attitude & Corresponding behaviour responsibility:

 All our staff members are expected to be customer oriented.

 They should have open attitude and corresponding behavior to elicit any
customer dissatisfaction at the point of interaction.
 All of us have the responsibility to take care of the customer problems and offer
ready solutions to them.

2. Dissatisfied Escalate:
In case the customer is not satisfied he/she has the option to escalate the problem
to the senior managers or the Branch Manager. All our branches display the notice
board, which mentions that in case a problem is not solved, they should meet the
senior/Branch Manager.

th
3. 15 of every month: Accounts or banking transactions:
Customers of the Bank can meet senior executives of the Bank on 15 th of every
month (between 3.00 p.m. and 5.00 p.m.) without any prior appointment and
discuss issues relating to their accounts/banking transactions. In case 15 th of month
is a holiday; customer can meet on the next working day.

4. Notice Board: Name, Mailing Address, Contact Numbers

All our Branches also display the notice board containing the name, mailing
address and contact numbers of the controllers of the branches.

5. Customer Feedback: Suggestion cum complaint box

The Branches also have a Suggestion cum complaint box in the Banking Hall,
which can be used by customers to provide feedback to us.

6. Ombudsman:
Similarly, the Reserve Bank of India has instituted an office of 'Ombudsman’. It is
also well publicized through display of notice boards in the Branches.

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7. Structured System: Complaint Register
 We have a structured system of registering and reporting the complaints
against the service quality at our Branches.
 The Bank has introduced a structured complaint register with interleaved tear
off system, wherein while retaining an office copy, the complainant is provided a
copy of the complaint, while another copy goes to the controllers with branch
comments regarding the resolution action taken by the Branch.

8. Resolve Complain: Action

If complaints come directly to the controllers i.e. directly at regional offices/Local
Head Offices/Corporate Office, the concerned Branch/office is informed about
the complaint with an expectation that it will resolve the complaint and inform the
complainant and the controllers about the action taken for resolving the
complaint.

Complaint Handling: Modes of Complain

• Since the introduction of Bank's website, facilities for the customer to register
their views/experience regarding Bank's services on the Web Site have been
provided. On our page for Customer Care, we have provided links for online
complaint, registering and capturing complaints, Customer service policies,
contact us and FAQs.
• The bank is also educating the customers by mentioning on the website that they
have the option of using the services of Ombudsman, however the bank
suggests that, the "complainant may approach the Banking Ombudsman only if
the complaint is not resolved at the bank level within a month."
• Customer can send an SMS if unhappy with the services. Customer has to send
SMS UNHAPPY to 8008202020

Resolving Complaints:

Complaints should be resolved internally within a period of one month. Let us at a look
at the following points.
All our best possible efforts at the Branches should be directed towards resolving the
complaints to the satisfaction of the complainant, within a period of maximum one
month.

This will obviate tarnishing of banks public image by his/her approaching the external
agencies like Ombudsman or Consumer Protection Courts.

Moreover, the introduction of an external agency like Ombudsman or Consumer

Protection Courts also adds to the financial and time cost to the Bank as well as to us
as the representatives of the Bank.

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As already mentioned above the least damaging impact of any service failure will be
when it is resolved at the first stage itself without any delay. This adds to the image of
the organization apart from enhancing customer satisfaction.

Resolving Complaints: Take an Example

“Let us look at Mr. Kumar's problem.

Mr. Kumar came into the bank to get a draft made for credit of some amount into his
son's account maintained at another bank. Mr. Kumar's son recently moved to a remote
university to complete his education and needs immediate funds to pay his fees. Mr.
Kumar is in a hurry to get the draft issued to send money to his son but is informed that
the money might not reach his son in time.

Mr. Kumar is upset and confused as to how to tackle the issue. This is a service failure.

What could be the resolution? Could the staff suggest another solution immediately?

Yes, a money transfer through NEFT/RTGS, depending on the facility at the other bank
could be suggested to Mr. Kumar and the issue may be resolved at the point of failure.”

The bank is also educating the customers by mentioning on the website that they have
the option of using the services of Ombudsman, however the bank suggests that, the
"complainant may approach the Banking Ombudsman only if the complaint is not
resolved at the bank level within a month."

Resolution Mechanisms:

So, what is the typical resolution mechanism for any failure? If anything goes wrong
from the customer's point of view or if something unexpected happens, there are people
who are prepared to make a special effort to handle the situation. Bankers as a team
take care of the following.

1. Customer’s Sentiments: Recognize that in me origin of all complaints there is a

very strong sentimental dimension The complainant has to make an emotional decision
that he/she is going to make a complaint Thus, the best time for our efforts to resolve
the issue would be to intervene Immediately, so that the prospective complainant is
taken care of and the emotions do not overpower and force him/her to take the road to
complaining.

2. Our Sentiments: Be in full emotional control Though at times it can be very difficult,
as a responsible representative of the Bank, it is a prime responsibility to behave in a
stable and responsible manner This will help effectively resolve a lot many future
problems for us as well as the organization.

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Resolve the issue: After the emotions are under control, the real problem can be
resolved by an objective and logical discussion with customer Provide necessary
explanation for the issues/failures. This process can end with a negotiated settlement
and resolution of the customers problems if the solution requires the controller’s
approval, the details of the case can be referred seeking approval for the suggested
solution. As an essential courtesy, in cases where an immediate resolution is not
possible, the customer should be provided a timeline by which time the problem will be
solved.
An open and user-friendly complaint resolution system recognizes the inevitability of
service failures in even the best of organizations and the provision of an effective
feedback mechanism. Such resilient and open systems recognize the essential need to
keep on listening to their customers in order to survive in an ever-intensive competitive
business world.

LET US SUM UP

In this Chapter, you learnt:

 The types of failures, which cause complaints, can be of four types

 If the customer is not satisfied with the services of a banker, he as certain options
before him
 The customer is mainly focused on resolution of his problem
 The complaint handling system should work as a feedback system
 There is a complaint handling (registering and resolution) system in State Bank of
India
 The Bank's website provides facilities to the customers to register their views.
 The customers have the option of using the services of Ombudsman.
 Most of the times, the effective resolution of the service failure is available at the
point of service failure itself.
 While handling a complain the sentiments of the customer, our own sentiments and
resolution of the issue kept in mind
 With that focus on the customer, we will always successfully resolve any service
failure.

CHECK YOUR PROGRESS

Q.1. Complain may arise due to several failures.These failures are categorised in
………categories.

A. 3

B. 4

C. 5

D. 6

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Q.2. Which of the following is not a service failure?

A. Slow service

B. Unable Service

C. Errors in service

D. Prompt service

Q.3.Which of the following is not a failure because of unprompted employee

actions?

A. Unusual action / behaviour

B. Overstepping cultural norms

C. Unable service

D. Insensitive to customer needs

Q.4. Which of the following is not a medium for registering a complain?

A. Giving in writing at the branch

B. Through SMS

C. Online

D. None of the above

Q.5. SMS unhappy number is…?

A. 8008202020

B. 8080202020

C. 8228202020

D. 8282202020



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 Chapter-7:Cash Handling Procedure
Our branches are classified as

i) Currency Chest branches and

ii) Hand balance branches or non-currency chest branches, depending on

whether a branch maintains a currency chest or not.

Currency chest is the property of Reserve Bank of India and we maintain currency
chest as Agent of RBI.The cash and other valuables in a branch will be held in the joint
charge of the Cash Officer and the BM or Accountant. Cash Officer is responsible for
maintenance of the currency chest & functioning of Cash department. He is responsible
for correctness of the physical cash balance held at the branch as reflected in various
registers of the cash deptt. such as vault register, hand balance register & Chest
register. At the beginning of the day, he will ensure that all cash boxes are handed over
to the associates/SWOs to enable them to undertake receipts & payments. At the end
of day, he will also take over surplus cash from the associates.

The Associate has to receive cash from customers for credit to their accounts, and also
for Issue of IOI. He will enter the denomination wise details of the amount received in
the account of the customer in the system. After satisfying with the quantity and quality
he then has to provide acknowledgement on the counterfoil of receipt to the customer.

Similarly, he will also make payments of cash against the withdrawal form/cheque
tendered by the customer & post the same in the system. The transactions would be
complete when the cash drawer is updated in CBS.
At the end of day, each associate will reconcile his physical cash balance with system
cash balance as reflected in the individual Teller cash report and then hand over the
physical cash to the Cash officer.
The reconciled balance will then be handed over to Cash Officer and transferred in
system also. Only after the Cash Officer accepts cash physically and in system, the
teller’s job would be completed for the day.
Cash Department operations are mechanized with use of machines for counting, sorting
and bundling currency notes. Fake note detecting machines are also used. Desktop
note counting machines with dual display are provided at the counters so that
customers can also view the counted number.
Receiving cash, sorting of notes into issuable & non-issuable, counting & preparation of
note packets are the responsibility of the associate/SWO. Each note packet should
contain 100 pieces of the same denomination. Counting and/or recounting of note
packets of denominations below Rs 500 will be done by the associate/SWO who
prepared the note packets. He will be responsible for the quantity and quality of the
notes in the packet.
In respect of note packets of denomination of Rs.500/- and above, the associate/SWO
will prepare the packets and sign. The cash officer or a designated staff will recount

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them. The person preparing the note packet will be responsible for the quality. The
person recounting the note packet will be responsible for the quantity (number of
pieces) .
Every employee working in the cash department has to maintain a Cash
Receipt/Delivery book, for recording movement of cash handled by him. The physical
transfer of cash between any two employees will be made only after making appropriate
entries in the register. The employee receiving the cash must acknowledge by signing
against the relative entry in the book of the employee delivering the cash. The
Associate/SWO has to count and confirm the number of packets in the bundles
received by him. Similarly, he must also hand over surplus cash as and when required
to the Cash Officer.
The employee receiving the cash will be solely responsible for the custody and safety of
all cash entrusted. He will be provided with a cash box/cash drawer with locking
arrangement and when leaving the counters, he must securely lock the door and keep
the keys of the drawer under his/her custody during the day.

CURRENCY CHEST

The objective of RBI’s currency management policy is to ensure adequate supply of

currency notes & coins for public convenience. Currency chest is a reservoir wherein
currency notes & coins are stocked and held on behalf of the RBI. Currency Chest is
the property of Reserve Bank of India. SBI as well as other Banks maintain Currency
Chests as agents of Reserve Bank of India. Bank’s responsibility to make available
good quality notes to general public. Banks receive periodic remittances of notes from
RBI and dispatch soiled notes remittances to RBI periodically

OPERATIONS IN CURRENCY CHEST

Every day at the start of operations, the joint custodians withdraw cash from the chest
for daily operations and redeposit cash at the end of the day.
The amount withdrawn/deposited is entered in Vault Register. This Register is always
held in the joint custody of Cash Officer and Accountant and kept inside the strong
room.
The min transaction in Currency Chest is Rs 1,00,000/- & in multiples of Rs 50,000/-
thereafter. The remainder of cash is retained as hand balance.
RBI has issued guidelines for timely & accurate reporting of currency chest
transactions to monitor the availability of notes & coins.
All transactions are reported to RBI everyday by uploading data through ICCOMS
software. Non reporting/ delayed/erroneous reporting is penalized by RBI.

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SMALL COIN DEPOT

Small Coin Depot is maintained at Currency Chest branches.

Small Coin Depot is the property of Government of India.
The minimum transactions from/to Small coin depot will be Rs.100/- and in multiples of
Rs.50/-.
All denomination of coins below Rs.1/- will form part of Small Coin Depot.
The notes and rupee coins in the currency chest, and the small coins in the small coin
depot must be kept distinct from each other and from those in Branch Cash Balance.
RBI has advised that none of the bank branches should refuse to accept small
denomination notes and / or coins tendered at their counters. Further, they said that it
will be preferable to accept coins, particularly, in the denominations of ' 1 and 2, by
weighment. However, accepting coins packed in polythene sachets of 100 each would
perhaps be more convenient for the associates as well as the customers. Such
polythene sachets may be kept at the counters and made available to the customers. A
notice to this effect may be displayed suitably inside as also outside the branch
premises for information of the public.
In order to obviate the problems of storage of coins at the branches, coins may be
remitted to the currency chests as per the existing procedure. The stock thus built in the
currency chest should be utilised for the purpose of re-circulation. In case the
stocks of these coins reach beyond the holding capacity of the currency chest for lack
of demand, the Issue Department of the Circle may be approached for remittance of
coins.

IN BRANCH CASH HANDLING SYSTEM

At the close of business each day, the cahier/SWO is not required to hand over to the
Cash Officer the entire cash in his possession. Each Associate/SWO will be provided
with a aluminum cash box (Size14 inch x 11 inch x 4 inch) along with keys. He is
required to retain some cash (within the overnight retention limit fixed) in the cash box.
This cash will form part of the branch hand balance. The locked cash boxes after being
marked with suitable identification will be deposited with the Cash Officer for overnight
safe keeping in the vault room under joint custody.
The SWO / Assistant (Cash) etc. who is required to handle cash during the day’s
operations will continue to be responsible for the cash handled. They are also
responsible for the custody, safety and correctness of the cash/valuables entrusted to
their care.
The system of Intraday verification of cash acts as a surprise check on the operations of
the associates. Cash Officer arranges to take out the Cash Boxes and hands them
over to respective SWOs after making entries in the Cash Box Receipt or Delivery
Register to record handing over of Cash Boxes to SWO. Entries in the register are
acknowledged by SWO. The SWO or Assistant (Cash) shall acknowledge receipt in the
system and begin the day's activities thereafter.

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During the day the associate receives/makes payments & accounts for the same in the
system. He also sorts/counts & prepares note packets as needed. He segregates the
soiled & issuable notes also. The SWO prepares note packets after sorting. The soiled
or mutilated notes should not be kept in the cash box overnight. The SWO will tally his
physical cash - denomination-wise, with the system balance. In case the cash held
exceeds the day-end retention limit fixed for him, the SWO will hand over surplus cash
to CO or to another SWO as directed by the CO. All transfer of physical cash will be
simultaneously inputted in his Cash Drawer in the system. Cash retention limit for Cash
Box is Max Rs 1,00,000/- (Can be increased by Controlling Authority) At the end of the
day, he will lock his cash box and deposit the box with the cash officer. Suitable entry
will be in the register against signatures of associate & CO
Cash Officer will verify physical cash of individual associates with system balance and
then reconcile his Cash Drawer and the physical cash. By passing necessary entries,
he will transfer cash balance of his Cash Drawer to the Vault Teller (Accountant/Service
Manager).
Joint custodian (Account/Service Manager) shall verify physical cash handed over to
him by CO and ensure that the details tally with the details of the cash transferred to
him by CO through the system (Vault Teller). Details of packets to be turned into the
Chest/cash safe are entered in the Vault Register and duly authenticated by Joint
Custodians. Cash officer will also ensure that all cash boxes are received and actually
lodged in the strong room. The cash in cash boxes will form part of branch cash
balance.

Custody of cash

The Cash Box remains overnight in the joint custody of CO and Accountant / Service
Manager. The cash in the drawer continues to remain in the single custody of SWO and
the key of Cash Box remains with the SWO.

Retention of cash

The original keys of the Cash Box must always be in the possession of the SWO.
The duplicates of the keys of the cash box / drawer will be lodged, in a packet duly
sealed by the Assistant (Cash), in the joint custody of the two officials in joint charge of
cash, valuables, etc. at the Branch along with the keys of the other Assistants (Cash).
A separate section in the key register shall be opened for the purpose and the details of
the keys shall be entered on the lines as is in vogue for the joint custodians' keys.

The circumstances for using duplicate keys for opening the Cash Box
If SWO remains on leave, without prior approval If SWO proceeds on sick leave,
without handing over the Cash and his absence is indeterminate Any other unforeseen
and emergent circumstances.
The procedure to be followed for using duplicate keys for opening the Cash Box under
the circumstances mentioned above shall be as under:

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“Duplicate key of the Cash Box to be, opened shall be withdrawn as per the / extant
instructions. The Cash Box shall be opened with the duplicate key, recording the
circumstances under which the duplicate key was used.”
The benefits from in branch cash handling process as under:
There will be no delay in starting customer transactions at the beginning of the day.
The process will reduce the time spent by the Cash Officer/Associate-in-charge/SWO/
Assistant (Cash) in handing over and receiving cash at the beginning/close of the day.

CLEAN NOTE POLICY

Objective of Clean Note Policy of RBI is to provide good quality currency notes & coins
to general public. It implies that that note packets are not to be stapled with pins but are
to be secured with paper bands etc. Writing on currency notes is also discouraged. RBI
has directed all banks to sort out notes into issuable and non-issuable, and issue to the
public only the clean notes. Banks are also required to extend note exchange facilities
to public freely based on their guidelines & note refund rules. Bank has installed note
sorting machines capable of segregating the notes into issuable, non-issuable and
suspect categories in all bank branches. Note packets are to be prepared as per Clean
Note Policy of Reserve Bank of India. The remittances of non-issuable, soiled and
mutilated notes are required to be sent to RBI at regular intervals. RBI has a scheme of
incentives & penalties for banks in this regard. It is known as the Currency Distribution
& Exchange Scheme for rendering customer service to public.

CASH RETENTION LIMIT

Cash balances at branches are idle assets and have opportunity loss, if kept at the
branch beyond the optimal level required for normal banking at these locations. Cash
held by our Non-currency Chest Branches is the property of SBI whereas cash in
currency chest branches is the property of RBI. Every Branch is required to maintain an
optimum cash balance at branches to meet the requirements of customers. Any excess
cash holding beyond a limit is shifted to linked currency chest branch. For the purpose
of arriving at fine cash balance at Hand balance branches, a limit for every branch is
required to be fixed. This limit is called Cash Retention Limit. Fixing of Cash Retention
Limit with peak and nonpeak level for Hand Balance Branches, Urban and Metro
Branches serviced by CAC/SCAB and other Branches.
The Retention Limit for Cash Points (ATMs/CDMs/Cash Recyclers) to be fixed with an
overall ceiling as per Peak period requirement with the help of appropriate programme
and fixed for one year. Insurance of Cash and other valuables “On Premises” and “In
Transit”.
The existing Cash Retention Limit of the Branches may be reviewed based on the New
Policy document and re-fixed. Cash Retention Limit of Branches may be reviewed in
the months of May/June every year and to make it applicable w.e.f. 1st July every year

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CASH REMITTANCE
Cash being a physical asset, is required to be transported between branches
depending upon necessity. Due to risk of robbery/dacoity, transportation should be
undertaken with adequate security. Remittances will be accompanied by a
representative of the remitting branch. Transportation of cash will be done as far as
possible in bank’s own vehicle or a closed jeep/van with security guards.
Cash should be transported in steel boxes with locks. The boxes should be secured to
the body of the vehicle with chains. Antecedents of the vehicle owner & driver should be
verified before hand. Secrecy & confidentiality of transportation should be ensured.
Remittances upto Rs 50 lacs will have minimum one armed escort. Remittances
exceeding Rs 50 lacs but below Rs 100 lacs should be accompanied by two armed
guards.(Non- CAC linked Branch) For CAC Linked – 50 lacs to 300 lacs
All remittances exceeding Rs 100 lacs, whether carried by cash van or hired vehicle,
should be accompanied by police escort (Non-CAC linked). For CAC linked – above
300 lacs

Detection of counterfeit notes

Banknotes tendered over the counter / received directly at the back office / currency
chest through bulk tenders should be examined for authenticity through machines.

No credit to customer’s account is to be given for counterfeit notes, if any, detected in

the tender received over the counter or at the back-office / currency chest. Counterfeit
notes should not be returned to the tenderer or destroyed by the bank branches /
treasuries. Failure of the banks to impound counterfeit notes detected at their end will
be construed as wilful involvement of the bank concerned in circulating counterfeit
notes and penalty will be imposed.

When a banknote tendered at the counter is found to be counterfeit, an

acknowledgement receipt in the prescribed format must be issued to the tenderer, after
stamping the note as counterfeit note. The receipt should be authenticated by the
associate and tenderer. The receipt is to be issued even in cases where the tenderer is
unwilling to countersign it.

Notes determined as counterfeit shall be stamped as "COUNTERFEIT NOTE" and

impounded in the prescribed format. Each such impounded note shall be recorded
under authentication, in in Forged Note Detection and Impounding Register (item code-
202499004) under authentication of cash officer and Accountant of the branch/office
concerned.
Counterfeit notes so detected and impounded must be entered on the same day in
Counterfeit Currency Reporting(CCR) portal, available in SBI Times=> More Links=>
SBI Single Sign on => Counterfeit Currency Reporting. Branches will report such Fake
Indian Currency Notes (FICNs) on CCR portal also which are detected by RBI in
remittances sent to them or detected during inspection conducted by RBI.

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Reporting to Police and other bodies

For cases of detection of counterfeit notes up to 4 pieces, in a single transaction, a

consolidated branch wise report in the prescribed format based on data extracted from
CCR portal should be sent by the Branch Manager to the Police Authorities or the
Nodal Police station, along with the suspect counterfeit notes, at the end of the month.
Branch would also forward a copy of the format to the Nodal Officer for information.
Acknowledgement to be obtained and kept on record.

For cases of detection of counterfeit notes of 5 or more pieces, in a single transaction,

the counterfeit notes should be forwarded by the branch immediately to the local police
authorities or the Nodal Police Station for investigation by filing FIR in the prescribed
format (Annex IV). Branch would also forward a copy of the format to the Nodal Officer
for information. Acknowledgement to be obtained and kept on record. Till the time of
forwarding the counterfeit currency notes to Police Authorities/ Nodal Police station,
these must be kept in Joint Custody.

Acknowledgement of the police authorities concerned be obtained for counterfeit notes

forwarded to them along with FIR as well as at the time of monthly reporting, as the
case may be. If the counterfeit notes are sent to the police by insured post,
acknowledgement of receipt thereof by the police should be invariably obtained and
kept on record.
A copy of the monthly consolidated report/ FIR shall be sent to the Forged Note
Vigilance Cell constituted at LHO by the Nodal Officer.

Preservation of Counterfeit Notes received from Police Authorities

All Counterfeit Notes received back from the police authorities/ Courts be advised to
FNVC and should be carefully preserved in the safe custody of the branch where these
were detected and a record thereof be maintained by the branch in a separate folio in
Branch Documents Register. Counterfeit Notes, which are the subject matter of
litigation in the court of law should be preserved by the branch concerned for three
years after conclusion of the court case. These Counterfeit Notes at branches should
be subjected to verification on a half-yearly basis (on 31st March and 30th September)
by the Branch Manager

Counterfeit notes should be preserved for a period of three (3) years from the date of
receipt from the police authorities. Such Counterfeit Notes should be sent to the
concerned Issue Office of Reserve Bank of India with full details thereafter.
Such counterfeit notes be physically verified by all the officials verifying Cash/ Currency
Chests ensuring quantity as per record. These officials must tally these numbers with
CCR portal. Any difference/missing numbers be indicated in the report.

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LIBERALIZED DEFINITION OF SOILED NOTE

SOILED NOTE:
A ‘soiled note’ means a note which has become dirty due to normal wear and tear and
also includes a two piece note pasted together wherein both the pieces presented
belong to the same note and form the entire note with no essential feature missing.
These notes should be accepted over bank counters in payment of Government dues
and for credit to accounts of the public maintained with banks. However, in no case,
these notes should be issued to the public as re-issuable notes and shall be deposited
in currency chests for onward transmission to RBI offices as soiled note remittances for
further processing.

NOTE REFUND RULES

RBI has changed the minimum area of the single largest undivided piece of note
required for payment of full value and half value for notes of rupees fifty and above to
80% from earlier 65%, which is detailed in Gazette notification.
Explanation : For the purposes of this sub-rule, it is hereby clarified that the value of a
mutilated note of less than rupees fifty denomination may be refunded in full if the
undivided area of the single largest piece of the note is as specified in column (5) of the
Table 1 below :
Denomination Length Width Area Minimum area (in cm2) required for
(cm) (cm) (in cm2) payment of full value*
(1) (2) (3) (4) (5)
1 9.7 6.3 61.11 31
2 10.7 6.3 67.41 34
5 11.7 6.3 73.71 37
10 13.7 6.3 86.31 44
10 (New MG 12.3 6.3 77.49 39
Series)
20 14.7 6.3 92.61 47
20 (New MG 12.9 6.3 81.27 41
Series)
indicated as the next complete higher square centimetre after half of the area of the
notes in a particular denomination."

Explanation : For the purposes of this sub-rule, it is hereby clarified that the value of a
mutilated note of equal to or more than rupees fifty denomination may be refunded in
full or half, as the case may be, if the minimum undivided area of the single largest
piece of the note is as specified in column (5) or (6) of the Table below:

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 Denomination Length Width Area Minimum area Minimum area (in cm2)
(cm) (cm) (in cm2) (in cm2) required required for payment of
for payment of full half value**
value@

(1) (2) (3) (4) (5) (6)

50 14.7 7.3 107.31 86 43
50 13.5 6.6 89.10 72 36
(New MG Series)
100 15.7 7.3 114.61 92 46
100 14.2 6.6 93.72 75 38
(New MG Series)
200 14.6 6.6 96.36 78 39
500 15.0 6.6 99.00 80 40
2000 16.6 6.6 109.56 88 44
@ Rounded off to the next complete higher square centimetre of 80% of the area of the
notes in a particular denomination.
** Rounded off to the next complete higher square centimetre of 40% of the area of the
notes in a particular denomination."

LET US SUM UP
Currency chest is the property of Reserve Bank of India and we maintain currency
chest as Agent of RBI. The cash and other valuables will be held in the joint charge of
the Cash Officer and the BM or Accountant. Cash Officer will distribute and collect cash
within the branch, maintain the currency chest and branch vault registers. There can be
any number of withdrawals from and deposits into the Currency Chest on every day,
without any ceiling. However, the minimum transaction in Currency Chest will be Rs
1,00,000/- & in multiples of Rs 50,000/- thereafter. RBI has directed all banks to sort out
notes into issuable and non-issuable, and issue to the public only the clean notes, the
note packets being secured with paper bands etc. and not to write on water mark, not to
staple.
Cash held by our Non currency Chest Branches in their safe room is the property of SBI
whereas in respect of currency chest branches are the property of RBI. Each branch is
having a retention limit based on factors like their cash requirement, distance to the
nearest currency chest. Insurance is available up to the retention limit only. Further,
cash held at non currency chest branches has a carrying cost, so branches have to pay
interest on cash balance to Corporate Centre under transfer pricing mechanism. So
minimum required cash to be retained.
Remittances upto Rs 50 lacs will have minimum one armed escort. Remittances
exceeding Rs 50 lacs but below Rs 100 lacs should be accompanied by two armed
guards.(Non- CAC linked Branch) For CAC Linked – 50 lacs to 300 lacs All remittances
exceeding Rs 100 lacs, whether carried by cash van or hired vehicle, should be
accompanied by police escort (Non-CAC linked). For CAC linked – above 300 lacs

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Banknotes tendered over the counter / received directly at the back office / currency
chest through bulk tenders should be examined for authenticity through machines. In no
case, the counterfeit notes should be returned to the tenderer or destroyed by the bank
branches / treasuries. Failure of the banks to impound counterfeit notes detected at
their end will be construed as wilful involvement of the bank concerned in circulating
counterfeit notes and penalty will be imposed

Branch cash handling process has been introduced wherein the Cash Officer/Cash-in-
charge shall allot overnight cash retention limit to the SWO/Assistant (Cash) in the
system up to a limit of Rs.1.00 lac.

CHECK YOUR PROGRESS

1. Minimum withdrawal / deposits in Small Coin Depot

A. Rs 100/- & multiples of Rs 50/-
B. Rs 1000/- & multiples of 100/-
C. Rs 500/- & multiples of Rs 50/-
D. None of these

2. In Branch Cash Handling (IBCH) is applicable to ?

A. Metro branches
B. All branches
C. Non currency chest branches
D. Currency chest branches

3. For Rs 500/- & Rs 2000/- person preparing the note packet is responsible for
A. Quantity only
B. Quality only
C. Both quality & quantity
D. None of these

4. Vault Register will always be kept in ?

A. Accountant's Hand Safe
B. With Cash Officer
C. Strong Room
D. None of these

5. The difference between day's total withdrawals and day's total deposits in the
chest is?
A. Treasury Transfer
B. Currency Transfer
C. Cash Transfer
D. D. None of these


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 Chapter-8 :Cheque Handling Procedure

Cheque Collection Policy: Cheque Handling Procedure in the Bank is guided by

Cheque Collection Policy- 2015. The cheque collection policy is based on the principles
of transparency and fairness in treatment of customers and to provide due disclosures
to the customers on the bank’s obligations and the customers’ right. The Policy ensures
efficiencies in collection of proceeds and providing funds to customers. The policy is
subject to review every three years or as and when considered necessary as per
requirement of RBI/IBA/BCSBI guidelines. The Policy on Bank's website
(statebankofindia.co.in /sbi.co.in) and intranet (SBI Times).

Collection of Cheques: The procedure for collection of domestic Cheques/instruments

and international instruments, inter alia, covers:
a) Established procedure for collection of Bank’s own Cheques (local and
outstation).
b) Collection of Cheques from our branches and branches of other banks.
c) Reduced time frame for collection of outstation/local Cheques drawn on
branches of the Bank
d) Penalty for delayed collection for local/outstation Cheques in a progressive
manner
e) Amounts of Cheques up to which immediate credit is to be provided.

Timeframe for Collection of Cheques: Cheques drawn on branches of other banks

located at State Capitals / Major “A” class Cities/other locations will be collected within
7/10/14 days respectively. If there is any delay in collection beyond this period, interest
at the rate specified shall be paid without insisting/waiting for a request from the
customer.

Different type of Cheques

a) Open cheque – payable at the counter of the bank
b) Bearer Cheque – payable to the person who presents the cheque for encashment.
Transferable by mere delivery.
c) Order Cheque – payable to the person named in the cheque. When the word bearer
is cancelled it becomes an order cheque.
d) Crossed Cheque – cheque with two parallel transverse lines are drawn with or
without the words between the lines. It can only be credited to the account of the
payee.
e) Stale Cheque – a Cheque whose validity period is over. An Out-dated cheque.
f) Ante-dated cheque – a cheque contains the date on which it is drawn. If it bears a
prior date or back date, it is called ante-dated cheque.
g) Post-dated cheque – cheque bearing a date later than the date on which it is drawn.
h) Mutilated cheque – torn into pieces.
Modes of Crossing a Cheque

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a) General Crossing - cheque bearing two transverse parallel lines at the left hand top
corner, with or without words (not negotiable).
b) Special crossing – when a cheque bears the name of the bank with or without the
words (not negotiable) between the transverse lines.
c) Restrictive crossing / Account payee Crossing – cheque can be paid by way of credit
to account only. Marked as a/c payee between the lines.
d) Double Crossing – when a second bank act as an agent of the first collecting banker
it is said to be doubly crossed.

Cheque Truncation System (Shifting from physical movement to electronic

movement of cheques): The system of MICR cheque clearing requires the cheques to
be physically moved from place to place. The time involved in their processing at
various intermediate stages increases the length of the clearing cycle of cheques. Also,
the cheques-in-transit are most susceptible to loss and frauds. Under Cheque
Truncation System (CTS) only the electronic images are being transmitted between
banks resulting into considerable reduction of the scope of perpetuation of frauds
inherent in paper instruments.

An electronic image of the cheque is transmitted to the paying branch through the
clearing house, along with relevant information like data on the MICR band, date of
presentation, presenting bank, etc. Cheque truncation obviates the need to move the
physical instruments across bank branches, other than in exceptional circumstances for
clearing purposes. The system effectively eliminates the associated cost of movement
of the physical cheques, reduces the time required for their collection and brings
elegance to the entire activity of cheque processing. The paying branch receives the
images for inward clearing and, if found to be in order, pays and sends facsimile of
cheque back to the clearing centre and vice versa.

CTS is being integrated to multiple clearing locations managed by different banks in

different centres. The integration of clearing houses into a nation-wide standard clearing
system made possible the clearance of cheques drawn on any bank in India within 24
hours (T+0 for local clearing and T+1 for inter-city clearing).

Grid clearing is an arrangement that allows banks to present/ receive cheques from/to
multiple cities in a Single Clearing House through a service branch at one centre. The
entire cheque volume in the country which was earlier cleared through 66 MICR
Cheque Processing locations is consolidated into the three grids.
Northern Grid (Headquarter Delhi): National Capital Region of New Delhi, Haryana,
Punjab, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand, Rajasthan and the Union
Territory of Chandigarh.
Western Grid (Headquarter Mumbai): Maharashtra, Goa, Gujarat, Madhya Pradesh and
Chattisgarh.
Southern Grid (Headquarter Chennai): Andhra Pradesh, Telangana, Karnataka, Kerala,
Tamilnadu, Odisha, West Bengal, Assam and the Union Territory of Puducherry.

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All centres covered under the same grid are treated as a single clearing zone and
cheques drawn on these centres and presented at any of the grid centres are treated as
locally drawn cheques. No outstation cheque collection charges/Speed Clearing
charges to be levied if the collecting bank and the paying bank are located within the
jurisdiction of the same CTS grid even though they are located in different cities.

CTS STANDARDS 2010: Guidelines issued by RBI for Standardisation and

Enhancement of security features in cheque forms: The guidelines outline
mandatory security features which can be leveraged by presenting banks while
scrutinizing cheques of drawee banks in CTS. A CTS compliant cheque leaf is different
from a normal cheque leaf and contains some certain features viz., MICR Band, quality
of paper etc. There are embedded verifiable features like Bar codes, encrypted cods,
logos, watermarks, holograms etc. Now it is possible to detect frauds easily through
interception of altered and forged instruments while passing through the electronic
imaging system.

Specific provisions made by RBI in the Payment & Settlement System Act 2007
 No changes/corrections should be carried out on the Cheques (other than for date
validation purposes, if required). Collecting banks have to ensure that such
Cheques are not accepted for presentation in CTS.
 For any changes in the payee’s name, courtesy amount (amount in figures) or
legal amount (amount in words) etc. fresh cheque forms should be used by
customers. This will help Banks to identify and control fraudulent alterations.

Process flow in CTS

 Cheques are deposited at the collecting bank.
 The Collecting/ Presenting bank (or its branch) captures the data (on the MICR
band) and the images of a cheque using their Capture System (comprising of a
scanner, core banking or other application) which is internal to them, and have to
meet the specifications and standards prescribed for data and images.
 End-to-end Public Key Infrastructure (PKI), to ensure security, safety and non-
repudiation of data / images.
 The collecting bank (presenting bank) sends the data and captured images duly
signed digitally and encrypted to the central processing location (Clearing
House) for onward transmission to the paying bank (destination or drawee bank).
 The presenting and paying banks are provided with an interface/ gateway called
the Clearing House Interface (CHI) that enables them to connect and transmit
data and images in a secure and safe manner to the Clearing House.
 The Clearing House processes the data, arrives at the settlement figure and
routes the images and requisite data to the paying banks.
 The paying banks through their CHIs receive the images and data from the
Clearing House for payment processing.
 The paying bank’s CHIs also generates the return file for unpaid instruments, if
any.

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  The return file / data sent by the paying banks are processed by the Clearing
House in the return clearing session in the same way as presentation clearing
and return data is provided to the presenting banks for processing.
 The clearing cycle is treated as complete once the presentation clearing and the
associated return clearing sessions are successfully processed. The entire
essence of CTS technology lies in the use of images of cheques (instead of the
physical cheques) for payment processing.
 It is preferable to present instruments complying with CTS-2010 standards for
clearing through CTS for faster realisation.

Paper to Follow (P2F) System: The cheque presented in CTS, which is not compliant
to CTS, Image or otherwise is required to be presented physically to drawee bank in
separate clearing session at the end of the day, at place/office decided by National
Payment Corporation of India (NPCI). The process is known as ‘Paper to Follow’ (P2F).
NPCI, who is the Image Settler, generates the report on ‘P2F and all banks need to
present such cheques in ‘P2F’ session.

Local Cheques/ Counter Return

 All cheques, and other Negotiable Instruments, payable locally in clearing, are
presented through the clearing system prevailing at the centre.
 Cheques deposited at branch counters and in Drop-boxes, within the branch
premises, before the specified cut-off time are presented for clearing on the same
day.

Important Laws related to Handling of Cheques

Holder in Due Course (Section 9 of NI Act): Must be a holder for valuable, not void or
illegal consideration. Must have become a holder before the date of maturity. Must have
become holder of the NI in good faith.

Endorser (Section 15 of NI Act): When the maker or holder of a negotiable instrument

signs the same, otherwise than a maker, for the purpose of negotiation, on the back or
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, and is called the “endorser”.

Amount of the Negotiable Instrument (Section 18 of NI Act): If the amount

undertaken or ordered to be paid is stated differently in words and figures, the amount
in words shall be the amount undertaken or ordered to be paid.
Inchoate Instruments (Section 20 of NI Act): An inchoate instrument is one which is
signed and stamped as required by law, but which has not been completely filled by the
maker. The transferor authorizes the transferee to complete the instrument up to the
amount covered by the stamp. An inchoate instrument is not a negotiable instrument
until it is completed.

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Liability of the Paying Bank (Section 31 of NI Act):The paying Bank with sufficient
funds of the drawer must pay a cheque presented for the payment. Otherwise, the
paying Bank must compensate the drawer for any loss arising out of default. However,
there are some conditions attached to the Bank’s responsibility to pay and liability for
default in payment.

Cheque payable to order (Section 85 of NI Act): Where a cheque payable to order

purports to be endorsed by or on behalf of the payee, the drawee is discharged by
payment in due course. Where a cheque is originally expressed to be payable to
bearer, the drawee is discharged by payment in due course to the bearer thereof,
notwithstanding any endorsement whether in full or in blank appearing thereon, and
notwithstanding that any such endorsement purports to restrict or exclude further
negotiation.

Material alteration (Section 87 of NI Act): Any material alteration of negotiable

instrument renders the same void as against anyone who is a party thereto, unless it
was made in order to carry out the common intention of the original parties. Any such
alteration, if made by an endorsee, discharges his endorser from all liability to him in
respect of the consideration thereof.

Notice of Dishonour (Section 106 of NI Act): Lays down two different rules for
determining reasonable time in connection with the notice of dishonour.

Protection to the collecting Banker (Section 131 of NI Act): Section 131 of NI act
gives protection to the collecting banker. A banker who has in good faith without
negligence received payment for a customer of a cheque crossed generally or specially,
shall not, in case the title to the cheque proves defective, incur any liability to the true
owner of the cheque by reason for having received such payment. These protections
are subject to compliance of certain guidelines which include, inter alia, establishment
of customer-banker relationship, collection of cheque for customers only, crossing of
cheques etc.

Dishonour of Cheques (Section 138-142 of NI Act): Dishonour of cheque for

insufficiency, etc., of funds in the accounts is a punishable offence and the procedure
for the same is laid down by Bank.

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LET US SUM UP
In this chapter we discussed about the Cheque Collection Policy of the Bank, broad
guidelines on the procedure for collection of domestic and international instruments,
timeframe for collection of cheques and compensation to be paid on delayed collection
of cheques. You must have seen that the Cheque Truncation System and Grid Based
clearing have revolutionised the entire cheque handling/collection process. In this
chapter we also discussed important Laws related to Handling of Cheques.

CHECK YOUR PROGRESS

1. Cheque Collection Policy of the Bank is reviewed :

(i) Every 2 Years (ii) Every 3 years
(iii) As and when considered necessary (iv) Both (ii) & (iii)

2. Cheques drawn on branches of other banks located at State Capitals should

be collected within:
(i) 7 days (ii) 10 days
(iii) 14 days (iv) 30 days

3. Which of the statements are correct :

(i) All the centres covered under the same grid in Cheque Truncation System
(CTS) are treated as a single clearing zone
(ii) Cheques drawn on the centres covered under the same grid and presented at
any of the grid centres are treated as locally drawn cheques
(iii) None is correct
(iv) Both (i) & (ii) are correct

4. How many Grids are presently working there in Cheque Truncation System:
(i) 2 (ii) 3
(iii) 4 (iv) 1

5. The Grids of Cheque Truncation System are centred at

(i) Delhi, Mumbai, Chennai (ii) Delhi, Pune, Chennai
(iii) Delhi, Mumbai, Kolkata, Chennai (iv) Delhi, Pune, Kolkata, Chennai

6. In which section of NI Act the definition of Endorser is given ?

(i) Section 20 (ii) Section 18
(iii) Section 15 (iv) Section 31

7. PKI under Cheque Truncation System stands for :

(i) Private Key Infrastructure (ii) Public Key Infrastructure
(iii) Public Key Institutions (iv) Private Key Institutions




 

Page 74 of 77
 Chapter-9 :The importance of maintaining Data accuracy

Data integrity means that the data is accurate and reliable. It is maintaining and
assuring the accuracy and consistency of data over its entire lifecycle. In most cases,
there are areas where important business decisions are routinely made based
on data.
The accuracy of data input is extremely important. There are several types of data
input. They all provide different aspects of data accuracy. There is Copy and paste
method, typing of data input manually, importing from other resources, handwritten &
Scan through scanners, network sharing, Bar Coding and Bar Scanners.

In this fast-moving digital world, having accurate data is one of the most important
aspects of any business more so in our Bank. The task of maintaining the highest data
accuracy is of utmost importance as the same data is used by the top management
while taking key business decisions. Having to deal with huge chunks of data on a daily
basis, the job of a data entry specialist is not easy, and the job has to be performed
very quickly and with exceptional care.

If care is not taken, errors in Bank’s data can have a huge effect on daily business
decisions. Incorrect data can have an adverse effect on key business decisions and can
also result in reducing the overall revenue of the Bank. It is important that every
company understands the importance of enterprise data quality problems and takes it
up seriously to solve them.

Here we take one example- suppose we have taken collateral against any loan
and that collateral has not been entered in system against the loan, definitely the
need of capital requirement for our bank will be higher.

5 Key Reasons for Data Quality

There are five components that will ensure data quality: completeness, consistency,
accuracy, validity, and timeliness. When each of these components are properly
executed, it will result in high-quality data. It is also imperative that everyone who uses
the data collected has a general understanding of what the data represents. High-
quality data will ensure more efficiency in driving a bank’s success because of the
dependence on fact-based decisions, instead of habitual or human intuition.

1. Completeness: Ensuring there are no gaps in the data from what was supposed to
be collected and what was actually collected.

Solution: By using the mandatory fields function, data completeness is easily

achievable. The respondent will not be able to complete and submit the data without

Page 75 of 77
 the mandatory fields being filled. This will also ensure less time being wasted fixing
mistakes resulting from incomplete data.

2. Consistency: The types of data must align with the expected versions of the data
being collected.

Solution: This can be ensured by using the drop down menus in a data collection
application, which will result in data that is consistently collected in the expected
format. Instead of free-form writing, there are predetermined numbers of options of
which to choose from. There will be consistency across the board and allow for
complete search results.

3. Accuracy: Data collected is correct, relevant and accurately represents what it

should.

Solution: Accuracy is more challenging to remedy than data completeness and

consistency. Accurate data is often the result of trained and competent employees.
However, there is still room for human error.

4. Validity: Validity is derived from the process instead of the final result.

Solution: When there is a need to fix invalid data, more often than not, there is an
issue with the process rather than the results. This makes it a little trickier to resolve.

5. Timeliness: The data should be received at the expected time in order for the
information to be utilized efficiently.

Solution: REAL TIME DATA. Anything slower becomes an inadequate source of

information.

How to Improve Data Accuracy?

Data quality management is the key to any Bank's success. It is important that one
understands the effect of data accuracy problems in the bank and takes steps to solve
them. Some of the key ways in which data accuracy rates can be improved are listed
here -

1. Inaccurate Data Sources

We should identify the right data sources, both internally and externally, to improve
the quality of incoming data. Incorrect data may result from migration of data from
one database to another, presence of incorrect values, or even time-bound data
changes. It is important to identify the cause for incorrect data and try to fix it.

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2. Set Data Quality Goals
It is important that we set realistic goals towards improving overall data quality. We
need to understand the basic problems which are plaguing data accuracy and set
realistic goals for the data quality. We need to emphasize on efficient data capturing
and data entry.
3. Review the Data
Reviewing is an efficient way to check the correctness of the data. Banks must
incorporate an efficient way to review and double check the data entered. It is
beneficial to review the data which will help in reducing the data errors to a large
extent.
4. Automate Error Reports
Making use of advanced software is always a plus point for any Bank. Generating
automated error reports is a common practice today.
5.Adopt Accuracy Standards
We must adopt highly robust data entry quality standards such as matching, geo-
coding, data monitoring, data profiling, linking, etc. This ensures that the data
entered conforms to pre-defined data standards which in turn help in improving the
data quality.
The following tips will help ensure that data entry process is accurate from the start to
the finish:

1. Identify the source causing the inaccuracies.

2. Double-check the data with reviews.
3. Examining the automated error reports.
4. Providing training to employees.

In addition to the above we must remember that now a days there is possibility of
malware attack to damage our data. Further, if we do not take proper steps there is
possibility of entering the malicious data by unauthorised persons. So, we have to take
care of the following:

 Unused network ports

 No access to third parties
 Proper use of Active Directory Service
 No Password Sharing
 Updated and proper functioning of Anti virus software
 Email usage policy
 Checking of capability levels



Page 77 of 77
 CERTIFICATE PROGRAMME-ASSOCIATES
(OTHER THAN CASH-IN-CHARGE AND THOSE DEALING IN FOREX)
MODULE-B
DIGITAL
Prepared by
State Bank Institute of Innovation & Technology, Hyderabad
 MODULE-B
DIGITAL
INDEX
Chapter-10 Topic Page No
Topic: 01 YONO (PROJECT LOTUS INITIATIVE) 1
YONO-Target Customers: 1
Insta Savings Account Conversion 2
Manual Intervention conversion process: 2
YONO – App/web features 3
Relationship Overview: 3
Check Your Progress 6
Topic: 02 Pre -Approved Personal Loan (PAPL) 7
Key Features Of The Product: 7
PAPL: Inclusion Of Xpress Credit, Xpress Credit Insta Top-Up 7
And Pension Loans As Pre-Approved Personal Loan On YONO

Key Features of The Product: 7

Check Your Progress 8
Topic: 03 Pre-Approved Xpress Credit Loans (PAXC) 9
Key Features Of The Product 9
Check Your Progress 10
Topic: 04 Pre-Approved Pension Loans (PAPNL)- 11
Key Features Of The Product 11
Check Your Progress 12
Topic: 05 Financial Superstore 13
FINANCIAL PRODUCTS: 13
Check Your Progress 14
Chapter-10 Topic Page No
Topic: 06 ONLINE MARKETPLACE 15
Topic: 07 ONLINE MARKET PLACE- IRCTC 16
Train Ticket Booking Feature- Integration of IRCTC 16
Check Your Progress 17
Topic: 08 REGULAR ACCOUNT OPENING PROCESS USING 18
OFFICIALLY VALID DOCUMENTS (OVDs)
Regular Savings Bank a/c – OVD: 18
New and improved YONO Account opening is now live with 19
features to simplify your life and save time
Check Your Progress 20
Topic: 9 OPERATING MODEL POST ACCOUNT OPENING PROCESS 21
DAC & DMS
Document Management System (DMS) 21
Document Archival Centre (DAC): 22
Check Your Progress 23
Topic: 10 YONO CASH CARD-LESS CASH WITHDRAWAL THROUGH 24
ATMs
BHIM SBI PAY 25
Topic-11 Pre-Requisites: 25
Registration Process: 26
Complaints/Dispute management: • Login to the App • Click on 27
View All in Recent Transactions • Select the transaction and Click
Raise Dispute button • Select Dispute type, enter Remark. • Click
Submit
Escalation Matrix : [email protected] 28
Check Your Progress 28
Topic: 12 GOOGLE PAY APP 29
Requires Android version 4.4 & above 29
Set up G-Pay 29
Get the G-Pay app (Android, iPhone & iPad) 29
Add, change or remove a bank account 29
Help And Feedback: 30
Chapter-10 Topic Page No
Topic: 13 YONO LITE SBI 31
App Features: 34
Transaction Limits & Charges: 34
Additional Features: 36
Trouble Shooting: 37
Check Your Progress 37
Topic: 14 MERCHANT ACQUIRING BUSINESS 38
Key Terminologies 38
Why POS? (Advantages) 38
Types Of Terminal On Offer (Our Product Offerings) 40
Service Fees 40
Other Value Added Services 41
Check Your Progress 42
Topic: 15 BHARAT QR 43
Features Of The Product 43
Requirements 43
Getting Bharat QR-SBI 43
Service Fee 44
Benefits For The Customers 44
Standard Operating Procedure (SOP): Merchant Onboarding 44
For Bharat QR Code
Topic: 16 SBI FASTAG 46
Purpose 46
Process 46
How To Get A Tag 46
Features Of SBI FASTAG 46
Risks And Miscelleneous: 47
Check Your Progress 48
 TOPIC: 01 YONO (PROJECT LOTUS INITIATIVE)

PERSONAL BANKING

YONO was launched in Nov 2017 to provide unique Omni channel (web, mobiles &
tablets) experience to customers. The app facilitates to avail lifestyle-based services
under 20 plus categories, including booking and renting cabs, entertainment, dining
experience, travel and stay, and medical assistance. Like SIRI in apple an Artificial
Intelligence support, State Bank Intelligence Assistance SIA is a new initiative
developed to support the customers through chatbot application. YONO application
is available in both Mobile Application and Web portal. The application is accessed
by New customers and Existing Customer as under.

YONO

Existing New
Customer Customer

INB ATM card Existing Existing Regular

INSTA A/C DIGITAL A/c
A/C

YONO-Target Customers:
o Individuals possessing smartphone/iOS
devices/tablet/PC, aged 18 years and above, who
are tech-savvy.
 Individuals not having a bank account but prefer to do cashless transactions.
 Individuals having a bank account but prefer to do cash transactions and are not
actively using the alternate channels.

 Guidelines: Login and Registration of YONO

 Operating system requirement for Android devices (mobile/tablet) - Android
version 5.0 and above.
 Operating system requirement for Apple devices (mobile/ipad) - iOS8.0 and
above
 Internet connection: Cellular (3G/4G) or Wireless (1Mbps and above).
 The mobile/tablet (Android/Apple) devices should have OS based locking
mechanism (passcode, pattern lock, biometric verification).

Revised Instructions: Based on the recent Hon. Supreme Court Judgments dated
26.09.2018 on the use of Aadhaar for various banking activities, the competent
authority has instructed to discontinue the e-KYC authentication facility for on

Page 1 of 48
boarding of customers at all channels with immediate effect. As per instructions
issued vide e-Circular R&DB/OPS-KYC/KYC/9/2018-19 dated 10th October 2018, e-
KYC authentication facility for on boarding of customers was discontinued and
accordingly account opening through YONO Digital Savings Account platform was
suspended from 11.10.2018. A new model for opening of Digital Savings Account
using OVD is going to be re-launched once the workflow for the revised OVD model
is completed.

Insta Savings Account Conversion

e-KYC authentication facility for on boarding of customers was discontinued and

accordingly account opening through YONO platform was suspended from
11.10.2018. Existing Insta Accounts will continue till the expiry of 12 months period.
Customer will be prompted to SMS and Mail triggers to convert the Insta Account to
Regular account. The process of conversion is two type i.e., 1. System prompted
conversion through customer 2. Manual intervention process. As per the guidelines,
customer has to complete the full KYC/Customer Due Diligence by branch visit and
upgrade the account within one year of account opening. If the account is not
upgraded within one year, it will be closed by CBS on completion of one year.
Alerts/SMS are being generated and sent to customers on completion of/nearing
completion of one year of account. Such customers will be visiting branches to
convert the Insta account to normal savings account.

Manual Intervention conversion process:

If due to any technical error, the queue for conversion/upgrade of account is not
processed, branch officials have to complete following steps.

i. Amend CIF type of customer from 010224 [PER-PUB-IND-OTP-e-KYC (Insta)] to a

normal customer type 010203 [PER – PUB – OTHERS (Normal)] or any other CIF
type – staff/DSP/etc., if applicable.
ii. Amend SB account type from 11111701 (Insta Digital Savings account) to an
account type of customer’s choice or a normal savings bank account. Illustrative
table presented below:
PRODUCT DESCRIPTION PRODUCT CODE
10111801 DIGITAL SAVINGS BANK A/C
10111101 NORMAL SAVINGS BANK A/C

iii. Upload signature of customer

iv. Upload c-KYC data to c-KYC repository.

Page 2 of 48
Based on the recent Hon. Supreme Court Judgments dated 26.09.2018 on the use
of Aadhaar for various banking activities, the competent authority has instructed to
discontinue the e-KYC authentication facility for onboarding of customers at all
channels with immediate effect. Therefore, the Account opening through YONO
platform is temporarily disabled till further clarifications are received.

YONO – APP/WEB FEATURES

The application has services such as Digital Banking, Financial Products, and Online
Market Place (OMP) applications are facilitated in Post –Login Screens.

YONO

Home Page

Accounts Financial Shop,

Products Book&Order

Relationship Overview:

Relationship overview help user 360-degree view for all existing relationships with
SBI and group subsidiaries. YONO post login if you click on Accounts the following
tabs are visible.

YONO-
POSTLOGIN

Click on My
Accounts Rewards

My My My Credit
My Balances My Deposits My Insurance
Borrowings Investments Cards

My Balances: Under My Balance customer selects an account that lead to

transaction enquiry tab and spend analyser tab. The account balance and date wise
transactions are shown with narration. User will have the option to email or download
the transaction statement.

Page 3 of 48
Spend Analysis: This feature has been introduced for analysis and graphical
representation of spending pattern of the customers in an account for a particular
period. This help in understanding spending behaviour, better financial planning and
budgeting. The analysis of spending behaviour in an account of customer can help to
understand spending pattern. Based on that financial planning and budgeting can be
set.

My Deposits: All Fixed Deposits accounts (FD, Tax Saver FD etc.) will be displayed
under this tab.

My Dreams: My Dreams is a new feature introduced where customer can create a

dream and save towards fulfilling that dream. As of now, our e-RD product is linked
with my dream. Subsequently other investments like Mutual Fund, Flexi deposits will
be introduced to broaden the saving and investment options. All such dreams will be
grouped and displayed in scrollable manner in My Dreams under My Deposits
section.

Fixed Deposit: In conversational and assisted journey of FD creation, the option to

avail FD or TSFD is given. FD receipt will be sent to registered email address and
will be available for download also after creation. Option to close FD and avail
overdraft against FD (if eligible) provided for seamless experience to user.

Tax Saver Fixed Deposit: The requirement of PAN details is mandatory for TSFD
creation and the same is validated by the system before creation of the TSFD. In Tax
Saver Fixed Deposit, the maturity instructions by default will be ‘credited back to
transaction account’, however interest pay-out is available like regular Fixed Deposit.
Minimum period of investment is 5 years and maximum are 10 years. On Tax saver
Fixed Deposit, no overdraft or any loan is permitted. User will not be able to close
Tax Saver Fixed Deposit during lock in period of five years. Minimum Deposit
Rs.1000.00 and maximum Rs.150000.00 per year can be invested.

Over Draft against Fixed Deposit: Overdraft facility is available for both STDR/e-
STDR and 3 years against TDR/e-TDR respectively for Overdraft availed online.
However, minimum residual tenure for maturity of fixed deposit should be 6 months.
Interest rate will be 1% above relative deposit rate. Loan limit will be 90% in case of
STDR and 75% in case of TDR. Minimum amount to be availed is Rs.25000 and
maximum will be Rs.5 crores.

My Borrowings: All loan accounts information like account number, outstanding

balance, no. of EMIs paid, next EMI due date will be displayed. For OD accounts,
information like amount OD limit, Limit availed, rate of interest, expiry date will be
displayed.

Page 4 of 48
My Cards: SBI Credit cards linked information will be available.

My Investments: All Mutual fund and Cap securities information will be available.

My Insurances: All SBI Life and SBI General Insurance information will be available.

My Rewards: Details of reward points earned through various eligible transactions

will be available. Across the digital platform journeys certain trigger points have
been identified and relevant reward points have been attached. The underlying
objective is to:

a. Continuously engages with the customers.

b. Try to get more data points of customers for better profiling and promotions.

Digital Bank Reconciliation: Transactions for which existing reconciliation process

exists will be done by existing reconciliation team at GITC. Transactions specific to
YONO platform will be done by Lotus DAU (Dedicated Accounting Unit).

Through BBPS (Bharat Bill Payment System): Reconciliation is required for the
transactions delivered to BBPS. Lotus will oversee the status of all transactions
originated from the platform with the help of MIS from RS Software. Reconciling the
commission of BBPS (Bharat Bill Payment System) transactions (originated from
YONO platform) on monthly basis.

Page 5 of 48
CHECK YOUR PROGRESS:

1. On Yono app and portal, what is the maximum amount for a Tax Saver fixed
deposit?
a) INR 1,00,000 lakhs in a financial year
b) INR 1,50,000 lakhs in a financial year
c) INR 150000 and INR 200,000 for senior citizens
d) INR 150000 and INR 500,000 for senior citizens

2. On Yono app and portal, which detail of the My Dream I cannot view?
a) Dream Name
b) Dream Period
c) Dream amount
d) Dream Image if not uploaded

3. On Yono app and portal, while funding the dream, where can I check the
interest rate offered by bank?
a) Rate of interest offered on your dream on the review page
b) There is no option to view rate of interest
c) There is an option to view rate of interest through info.sbi in YONO
d) There is an option to view rate of interest through bank.sbi in YONO

4. Mr. X opened e-STDR in Yono portal. Now he wants to close fixed deposit.
Can he close it prematurely?
a) It cannot be closed
b) It can be closed by himself
c) He has to request any Branch to close
d) Home branch only to close

5. On Yono app and portal, what is tenure applicable to Tax Saver fixed
deposit?
a) 3 years to 5 years
b) 5 years to 7 years
c) 5 years to 10 years
d) More than 10 years




Page 6 of 48
 TOPIC: 02 PRE -APPROVED PERSONAL LOAN (PAPL)

The maximum amount offered under the scheme was further revised to Rs. 2 lacs.
Eligible customers will be intimated about their selection through SMS, e-mail, Online
SBI, In App Notifications. To increase our penetration in digital platform, it has now
been decided to offer Xpress Credit and Pension Loans up to Rs. 5,00,000/-, and
Rs.2,50,000/- respectively in the pre-approved format. Further, Xpress Credit Insta
top-up to Rs.3, 00,000 (Presently available only on INB) is also brought under the
umbrella of the existing Pre-Approved Personal Loans on Yono.

KEY FEATURES OF THE PRODUCT:

Xpress Credit up to Rs. 5 Lakhs, Pension loans up to Rs. 2.5 lakhs will be offered as
Pre-approved Loans in addition to existing PAPL up to Rs.2 lakhs and Xpress Credit
Insta top-up up to Rs.3 lakhs.

Simplified 4 click process for availing loan through app/portal with instant
disbursement. End-to-end digitized process (no branch visits and no documentation).
The eligible customers will be pre-selected on the basis of the analytic engine. Rule
engine-based loan offers to different categories of existing P-segment Customers. In
case, a customer is eligible for more than one product out of the above 4 products,
he/she will be offered the product with the highest eligibility under PAPLs. Pitching of
the offers through SMS, e-mail and push notifications to the eligible Customers.

PAPL: INCLUSION OF XPRESS CREDIT, XPRESS CREDIT INSTA TOP-UP AND

PENSION LOANS AS PRE-APPROVED PERSONAL LOAN ON YONO
In view of the encouraging response for the Bank’s maiden digital product and to
increase our penetration in digital platform, it has now been decided to offer Xpress
Credit and Pension Loans up to Rs. 5,00,000/-, and Rs.2,50,000/- respectively in the
pre-approved format. Further, Xpress Credit Insta top-up to Rs.3,00,000 (Presently
available only on INB) is also brought under the umbrella of the existing Pre-
Approved
Personal Loans on Yono.

KEY FEATURES OF THE PRODUCT:

 Xpress Credit up to Rs. 5 Lakhs, Pension loans up to Rs. 2.5 lakhs will be offered
as Pre-approved Loans in addition to existing PAPL up to Rs.2 lakhs and Xpress
Credit Insta top-up up to Rs.3 lakhs.
 Simplified 4 click process for availing loan through app/portal with instant
disbursement.
 End-to-end digitized process (no branch visits and no documentation).The eligible
customers will be pre-selected on the basis of the analytic engine. Rule engine-
based loan offers to different categories of existing P-segment Customers.

Page 7 of 48
 In case, a customer is eligible for more than one product out of the above 4
products, he/she will be offered the product with the highest eligibility under
PAPLs. Pitching of the offers through SMS, e-mail and push notifications to the
eligible Customers.

CHECK YOUR PROGRESS:

1. Pre-approved Personal Loan does not include the following loan:

a) Xpress Credit Loan
b) Pension Loan
c) Deposit Loan
d) Top Up Xpress Credit Loan

2. The eligible customers under PAPL scheme have to do the following to avail
the loan:
a) Approach their Home Branch and execute the documents
b) Approach any branch and execute the documents
c) By clicking the required responses, the loan account is instantaneously created
without any paper work
d) All the above are correct options

3. The eligible customers under PAPL are intimated through

a) SMS
b) e-mail
c) Push intimation through YONO app
d) All the above are correct options

4. How the eligibility of the customers are assessed under PAPL?

a) Branch staff scrutinise the income documents and recommend

b) Staff have to apply online and CPCs will assess the eligibility
c) The eligible customers are pre-selected by analytic engine
d) None of the above options is correct

5. If any customer is eligible for two loan products i.e. Xpress Credit and PAPL
what will be the process?
a) Customer can avail both the loans simultaneously
b) Customer can avail only one loan, which loan limit is lower
c) Customer can avail only one loan, which loan limit is higher
d) Both the loans will be cancelled



Page 8 of 48
 TOPIC: 03 PRE-APPROVED XPRESS CREDIT LOANS
(PAXC)
KEY FEATURES OF THE PRODUCT
Parameter Details
Purpose Any personal purpose other than speculative purposes.
Eligibility Bank’s existing customers will be pre-selected for this product offering based on
following eligibility criteria:
 Account should be opened with a Salary Package (SP) product code. (For e.g.
CGSP, CSP, DSP, ICGSP, PMSP, PSP, RSP, SGSP etc.)
 Account should be in single name. Should be “Resident Indian.”
 Account should be KYC compliant. Aadhar is Mandatory.
 Age of the customer should be between18-56 years.
 There should not be any existing Xpress Credit loan
 None of the existing loan accounts under the CIF should have SMA 2 and
above or NPA in last 12 months.
 None of the existing loan accounts of the customer any Bank/Financial
Institutions should have been NPA (i.e DPD>90 days) in last 12 months.
 There must be at least one credit every month for last 12 months.
 Median of the ‘Maximum credit in the salary account in each month for last 12
months.’ ≥ Rs 5000.
 CIBIL score criteria is as under:
Salary Package Holder: No CIBIL cut off
Others: CBIL score 700 & above.
The pre-selected customers will be intimated about their eligibility / selection for
PAPL through SMS/ email/ pop-up messages/ in-app notifications/the offer
section of Internet Banking
Product code Term Loan 64504219 - MC-TL-PRE APPRVD XPRES CR
Availability of PAPL is available only through “YONO” App/ “yonosbi.com” Portal. The loan
the Facility account will be parked in the Home Branch (which maintains the Salary
Account considered for PAPL eligibility)
Loan Amount Minimum Limit: ₹ 25000/-
Maximum Limit: 24 times NMI subject to maximum of ₹5,00,000/-
Subject to EMI/NMI ≤50%
NMI = Median of the ‘Maximum credit in the salary account in each month for
last 12 months.’
Loan Tenure Maximum: 72 months or {58 years- Age of customer (years and months) as on
Quarter end date of data extraction i.e. 31st March, 30th June , 30th
September, 31st December} in months, whichever is lower Subject to EMI/NMI
≤ 50%
Security Nil (Unsecured Loan)
Proc. Fee Rs 2000 + Applicable Tax
Moratorium Not Applicable
Repayment The Loan will be repayable by way of EMIs. Standing Instruction (SI) for EMI
payment will be automatically set up on Savings Bank Account of the customer.
Loan Account will be closed / pre-closed by the Home Branch after recovering

Page 9 of 48
 residual dues from the Customer’s Savings/ Current Account.

Penal Interest If the irregularity in loan account exceeds EMI, a penal interest at 2% p.m. (over
and above the applicable rate of interest) will be charged on the overdue
amount for the period of default. If part instalment EMI remains overdue, no
penal interest will be charged.
Penalty No pre-payment or part-payment penalty applicable.
Number of Only one PAXC can be availed at any point of time. Multiple PAXCs are not
PAPLs availed permitted even if a customer has availed lower loan amount than their
eligibility/loan offered. In case the loan account is closed before any of the
quarter’s end, a customer will not be eligible for taking a new loan till the start of
next calendar quarter, which will also be subject to their eligibility for PAXC
facility in the subsequent quarter(s).
Validity The offer to the pre-selected customers will be valid till the end of Calendar
Quarter in which they are offered the loan. The new list will be updated at the
back end every Calendar quarter.
Check-off No-Check off
RSM As per extant score card applicable for Xpress Credit
Document The acceptance of Terms & Conditions of loan, as listed on the App/ Portal
screen will be obtained digitally, by ticking the check box by the customer. No
physical documents will be exchanged between the Customer & the Bank.
CHECK YOUR PROGRESS:
1. The loan account under PAXC will be opened automatically by the system
under which branch?
a) Customer’s Home Branch where the CIF is maintained
b) Any branch as per customer’s choice
c) Branch in which the salary/income account is maintained
d) None of the options is correct

2. Can a customer can avail a second PAPX?

a) Yes, if the EMI/NMI criteria permits
b) No. At any given point of time only one PAPX loan can be availed
c) Existing PAPX account is closed automatically and New loan is provided
d) None of the options is correct

3. How Long the offer of PAXC is available for the customer?

a) Customer has to avail within 15 days from the notification
b) Customer has to avail within 30 days
c) Customer has to avail PAXC within the calendar quarter in which the officer is
made
d) Customer has to avail PAXC with the following calendar quarter in which the offer
is made.


Page 10 of 48
 TOPIC: 04 PRE-APPROVED PENSION LOANS (PAPNL)-

KEY FEATURES OF THE PRODUCT

Sr. Parameters Details

No.
1 Purpose Any personal purpose other than speculative purposes.
2 Eligibility Bank’s existing customers will be pre-selected for this product offering
based on following eligibility criteria:
 Customer’s PPOs must be with Bank; Treasury & family Pensioners
are not eligible. Account in single/joint name. Should be “Resident
Indian.”
 Account should be KYC compliant. Any of Aadhaar/ Voter ID /
Passport / Driving License/PAN should be available at CIF.
 Age of the customer should be less than 66 years. There should not
be any existing Pension account under the CIF.None of the existing
loan accounts under the CIF should have SMA 2 and above.
 None of the existing loan accounts under the CIF had been NPA in
last 12 months. None of the existing loan accounts of the customer
any Bank/Financial Institutions should have been NPA (i.e. DPD>90
days) in last 12 months. There must be at least one credit every
month for last 12 months
 The pre-selected customers will be intimated about their eligibility /
selection for PAPL through SMS/ email/ pop-up messages/ in-app
notifications/the offer section of Internet Banking.
3 Facility Term Loan 64504215-MC-TL-PRE-APROVD-PEN-LOAN
4 Availability of PAPNL is available only through “YONO” App/ “yonosbi.com” Portal.
the Facility The loan account will be parked in the Home Branch (which maintains
the Savings Account considered for PAPL eligibility)
5 Loan Amount Minimum Limit: ₹ 25000/- Maximum Limit: 18 times NMP subject to
maximum of ₹2,50,000/- Subject to EMI/NMP ≤50%
NMP= Median of Monthly pension amount for last 6 months
6 Loan Tenure Maximum: 60 months or (70Years- Age of customer (Years and
Months) as on Quarter end date of data extraction i.e. 31st March
30th June 30th September 31st December) in months whichever is
lower Subject to EMI/NMI ≤ 50%
7 Rate of 3.35% above 2-year MCLR with no reset (currently 8.65%) effective
Interest rate 12.00%
8 Security Nil (Unsecured Loan)
9 Proc. Fee Rs 1000/-+ Applicable Tax
10 Moratorium Not Applicable
11 Repayment The Loan will be repayable by way of EMIs. Standing Instruction (SI)
for EMI payment will be automatically set up on Savings Bank
Account of the customer. Loan Account will be closed / pre-closed by
the Home Branch after recovering residual dues from the Customer’s
Savings/ Current Account.
12 Penal If the irregularity in loan account exceeds EMI, a penal interest at 2%
Interest p.m. (over and above the applicable rate of interest) will be charged
on the overdue amount for the period of default. If part instalment
EMI remains overdue, no penal interest will be charged.
13 Pre-payment No pre-payment or part-payment penalty applicable.
Penalty

Page 11 of 48
14 Number of Only one PAPNL can be availed at any point of time. Multiple PAPNLs
PAPLs are not permitted even if a customer has availed lower loan amount
availed than their eligibility/loan offered. In case the loan account is closed
before any of the quarter’s end, a customer will not be eligible for
taking a new loan till the start of next calendar quarter, which will also
be subject to their eligibility for PAPNL/PAPL facility in the subsequent
quarter(s).
15 Validity of The offer to the pre-selected customers will be valid till the end of
Offer Calendar Quarter in which they are offered the loan. The list of
Accounts pre-selected for this offer will be dynamic and a new list will
be prepared on quarterly basis based on the eligibility criteria as
stated above. The new list will be updated at the back end every
Calendar quarter so that all ineligible account holders, who may be
previously eligible, are removed from the list.
16 RSM As per extant Score card applicable for Pension Loan
17 Documentati The acceptance of Terms & Conditions of loan, as listed on the App/
on Portal screen will be obtained digitally, by ticking the check box by the
customer. No physical documents will be exchanged between the
Customer & the Bank.

CHECK YOUR PROGRESS

1. On Yono App/Portal, what is the maximum amount offered under Pre-

Approved Personal Loan?
a) Rs.25000/-
b) Rs.50000/-
c) Rs.100000/-
d) Rs.200000/-

2. What are eligibility conditions for PAPL facility in YONO?

a) Account should be opened with a CSP product code. (For e.g. CSP/ DSP/ PMSP/
SGSP etc.)
b) CIBIL cut-off score of 700.
c) Account should be in single name (Joint Accounts not eligible). Residential Status
of the Customer should be “Resident Indian.”
d) All above options.

3. On Yono App/Portal for Pre-Approved Personal Loan, do I have to visit the

Branch for applying the loan?
a) Single Visit Required.
b) Two times requires for documentation and disbursement.
c) Whenever requires for application, documentation and disbursement.
d) No visit is required, this loan is made available to you through YONO
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Page 12 of 48
 TOPIC: 05 FINANCIAL SUPERSTORE
FINANCIAL PRODUCTS:

The next section after My Relationships is Financial Products. This section is

intended to make available all Cross-Selling products of SBI for purchase online. The
structure of this section in the application is as under.

YONO- POST LOGIN

My Financial
Relationships Products

Credit Cards Insurance Investments Loans

Mutual Education
Securities Car Loan Home Loan
Funds Loan

YONO’ (You Only Need One), aims to bring Omni-channel experience to customers.
Financial Super Store will offer financial products of our JV partners to customers
with a view to offer a one view of their holdings and to promote cross-sell. State
Bank Group products available on single platform providing Customer One View.
Financial Products like Insurance, Cards, Mutual Funds, Securities etc. targeted to
an intelligibly segmented customer base through the use of Big Data Analytics based
on purchase behavior and life events of the customer. Aggregator – Customer one
view, thereby positioning the bank as a one stop solution for all their needs along
with Opportunities for Cross Selling and Upselling. Financial Calculators, comparison
tools, customer life event-based targeting.

Page 13 of 48
CHECK YOUR PROGRESS

1. Which of the following term is not relating to OMP?

a) Shop
b) Book and Order
c) Shop and Order.
d) Financial Super Store.

2. Which of the following is not an advantage of OMP?

a) Online store for customers to fulfil their daily and lifestyle needs.
b) Both B2C and B2B Marketplace.
c) Tools for Marketing and special offers management.
d) Online Financial Solution

3. What is OMP Online Marketplace in YONO?

a) OMP is a platform where one can access the world of online products anywhere,
anytime.
b) The user can browse a large range of products and services offered by various e-
Commerce partners, avail exclusive discounts and offers across categories and
avail financing facility from SBI.
c) Customers can login with their Internet Banking credentials on the YONO
app/portal and access the 'Shop' & 'Book and Order' sections of OMP.
d) All the above.

4. What is Spend Analyzer in YONO?

a) Analysis and graphical representation of spending pattern of the customers in an
account for a particular period.
b) Analysis and graphical representation of spending pattern of the customers in
Credit Card for a particular period.
c) This can help customer in understanding spending behaviour, better financial
planning and budgeting.
d) A and C

5. What is the minimum amount in a month I can save under My Dream?

a) INR 10
b) INR 100
c) INR 1000
d) INR 10000

6. Mr. X having Digital Savings Account opened through YONO App/Portal.

What is the maximum amount of deposit Mr. X can make?
a) 100000
b) 1000000 per transaction
c) 1000000 per day
d) Unlimited



Page 14 of 48
 TOPIC: 06 ONLINE MARKETPLACE

Online Marketplace comprises of two sections “Shop” & “Book and Order” wherein
customers can access wide range of products & services under various categories
from multiple e-Commerce merchants. The application will provide a single touch
point for SBI Customers to access wide range of “Beyond Banking” products from
multiple B2C e-Commerce merchant partners. This will include online purchase of
retail, travel, daily, fashion and lifestyle needs as well as availing various online
services. Online Marketplace will also provide personalized offers to the users. It will
be a B2C platform where the number of merchants will be ramped up over a period
of time. Online Market Place is devised into two verticals viz;
i. Shop and
ii. Book & Order as under.

Shop: Shopping at YONO is a pleasant experience with access to a wide range of

shopping portals online to purchase physical goods. There are around 58 plus
business partners in 14 categories are onboarded in this section. In addition to
existing categories in Shop section, a new category “Auto Mall” have been
envisaged where Bank would be partnering with all leading Automobile majors
(OEMs) viz. Ford, Maruti Suzuki, Tata Motors, Hyundai, etc.
Book & Order as under: This section under OMP having 25 business partners
relating to Services like travel booking, Hotel, Vehicle Hire etc., in 8 categories
onboarded.

YONO-
POSTLOGIN

My Financial Online Market Place

Relationships Products (OMP)

Shop Book &

Order

It aims to increase engagement with the customers and deepen the wallet share by
providing them customized offers based on transaction history leveraging SBI’s B2C
e-commerce merchant partners. There are 58 plus Business Partners are onboarded
in ‘SHOP’ and 25 plus Business Partners are onboarded in ‘Book and Order’
together segmented in 22 plus categories. In recent modification of the Mobile App
dash board, both the Shop plus Book and Order merged together in single screen
and renamed as SHOP & ORDER.


Page 15 of 48
 TOPIC: 07 ONLINE MARKET PLACE- IRCTC

TRAIN TICKET BOOKING FEATURE- INTEGRATION OF IRCTC

SBI customers can login through their INB Credentials on the YONO platform and
access IRCTC in category “Train Booking” under “Book and Order” section of OMP.

Customers visiting “Train Booking” under Book and Order” section can book train
tickets directly on YONO platform. Customers can also cancel tickets and file TDR
for tickets booked through YONO. Direct account debit, SBI Debit card and SBI
Credit card are the payment options available for the customer to pay for the
booking.

IRCTC on OMP would allow customers to:

 Search trains for ticket availability,
 Book train tickets, Tatkal, view/Print/Get SMS/Cancel booked train tickets,
 Make payment through direct account debit, SBI Debit Card, SBI Credit Card,
 Know PNR Status of ticket booked through YONO VIKALP option,
 File TDR and View Booking history.

Benefits: No PG charges for using Direct account debit or SBI Debit card. Exclusive
Reward points, Cashback (wherever applicable) etc., on using SBI Payment
instruments.

Payment Option: SBI payment options like Direct account debit, SBI Debit cards,
and SBI Credit Cards will be available.

Charges: Customers will be charged a convenience fee Rs. 20/- per ticket for all
Non-AC classes. Rs. 40/- per ticket for all AC classes.

Page 16 of 48
CHECK YOUR PROGRESS

1. The payment options available for the customer to pay for the booking
IRCTC tickets through YONO are……….
a) Direct account debit
b) SBI Debit card
c) SBI Credit card
d) All channels mentioned in other options

2. Which of the following statement is not correct regarding TRAIN TICKET

BOOKING FEATURE integration of IRCTC to provide…?
a) Customers visiting ‘Train Booking’ under Book and Order’ section
b) Customers can also cancel tickets and file TDR for tickets through YONO
c) Customers will not be charged for convenience fee
d) Seat Availability will be displayed upfront for top three trains for the chosen class
by default in Yono

3. Which of the following facility not available in IRCTC booking in YONO?

a) Book train tickets
b) Book Tatkal Tickets
c) File TDR
d) All the options are available
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Page 17 of 48
 TOPIC: 08 REGULAR ACCOUNT OPENING PROCESS
USING OFFICIALLY VALID DOCUMENTS (OVDs)

e-KYC authentication facility for on boarding of customers was discontinued and

accordingly account opening through YONO platform was suspended from
11.10.2018. A new account opening process based on OVD has been launched for
customers visiting branches. The process will be available for new to the Bank
customers currently. The accounts will be opened in the product codes.

Regular Savings Bank a/c – OVD:

 With Cheque book (Product Code – 1011-1901)
 Without Cheque book (Product Code – 1111-1901)

Key features applicable to accounts opened using OVDs will be as follows:

 The account will have mandate as single operation above 18 years residents.
 The process is presently available for new to Bank customers only. Facility for
existing customers will be launched in near future.
 Debit card / Cheque book / Internet banking services will be activated based on
the choice provided by customer.
 Data will be filled in directly on YONO customer service portal. The handwritten
account opening form is not required to be obtained. Based on the KYC
documents and data provided by the customer during the process the maker will
do the data entry. A system generated Customer Data Input Form (CDIF) will be
printed by the maker.
 The customer will review the data in the CDIF and sign it. In case of any
discrepancy, the maker will rectify it and reprint the CDIF.
 Proof of Identity and Proof of Address to be verified by authorized official against
respective originals and needs to be self - attested / signed by customer as per
laid down instructions.
 Customer’s signature to be obtained on the bar-coded Terms and Conditions
form, Form 60 (if applicable) generated from the portal.
 The CIFs opened in this process will be subjected to LCPC second level of
scrutiny as per CKYC process. The required documents will be sent by YONO
platform to respective LCPCs as a backend automated process, and in this
regard no action required from branch during creation of CIF/account.
 Observations of LCPC for the CIFs generated from YONO platform would be
handled on same lines as CIFs generated from CBS platform. The CKYC
dashboard needs to be monitored for by branch for the status of the CIFs.
 The physical copies of the documents viz. duly attested and verified proof of
identity and proof of address, Customer Data Input form will be sent by attaching
with Terms and Conditions form to Document Archival Center (DAC) through e-
DAC workflow as per e-circular no DB&NB-Yono/32/2017- 18 dated 20.11.2017.

Page 18 of 48
 Charges applicable for all services, including for branch cash transactions and
minimum monthly balance requirements will be as per existing service charges
applicable to regular savings account.
 To avoid any leakage of the customer’s scanned sensitive data through email,
the scanned images of proof of identity, proof of address, customer signature,
photo, should be deleted from the branch’s computer after account has been
opened successfully and CIF is activated. Branch has to ensure that this activity
is carried out without fail.

Some improvements have been done in the existing OVD based YONO process of
account opening. Key changes will be as follows:
 The format of Customer Data Input Form (CDIF) generated by the system during
the account opening process has been modified. It will have photograph and
columns for customer signature.
 After downloading and printing the CDIF, it has to be uploaded in the system after
obtaining the signature of customer on CDIF.
 Terms and Condition page will be printed during the process and will be uploaded
after the signature of the customer.
 Maker review screens have been removed.
 In Religion option a new tab “Do not want to declare” added
 As the Terms & Conditions form is system generated, Branch is no more required
to enter the bar code number in the system.
 If web cam is not working, Photo upload option has been provided.

New and improved YONO Account opening is now live with features to
simplify your life and save time

Have you faced any of …Here’s why you will like new journey on YONO
these challenges…
Webcam is not available/ Now you can scan and upload customer photograph,
not working alternately customer can email the photograph to you
Terms and Condition form Now T&C form will be generated on Yono during
not available account opening (no need to enter barcode anymore)
Signature not 
getting Print the T & C form with paper setting as A4
cropped properly  Scan the T&C form at 150 dpi resolution in JPEG
format
Accounts rejected by LCPC Re- upload the desired documents / Photo / Signature
using CKYC rejection enquiry menu in CBS. SOP for
handling rejection cases is attached as Annexure B of
the Account opening SOP.

Page 19 of 48
 CHECK YOUR PROGRESS

1. While opening a Regular Savings Account of a customer, multiple CIF of the

same customer identified in CBS. What action is to be taken?
a) Refuse to open new account.
b) Ask to close the existing accounts.
c) Opening new account without minding the existing CIFs.
d) De-duplication process

2. The minimum balance requirement on Regular Saving Bank Account is:

a) Rs.500/-
b) Rs.1000/-
c) Rs.2000/-
d) There is no minimum balance requirement on this account.

3. What is full form of CDIF?

a) Cheque Deposit Information Form.
b) Cheque Deposit Input Form.
c) Customer Data Input From.
d) Customer Deposit Information From.

4. How many types of account under Yono application is available to open?

a) Only one type is Insta Saving Bank Account.
b) Only one type is Digital Savings Bank Account
c) Only one types Regular Saving Bank Account.
d) All the above accounts.



Page 20 of 48
TOPIC: 09 OPERATING MODEL POST ACCOUNT OPENING
PROCESS DAC & DMS
As a part of digital initiatives of the Bank, digital transformation of core processes /
products is envisaged under YONO (You Only Need One), Omni channel platform to
reduce manual intervention and go paperless to provide superior and seamless
customer experiences including customer on-boarding. Keeping this in view, Bank
has introduced a new process of Document Archival and Document Management for
the accounts opened on this Omni Channel Platform.

Process: In the proposed processes of Account Opening on ‘YONO’, physical

copies of forms obtained viz. AOF, T&C form, form 60 etc. will directly move from
Branch to DAC. The scanned copy of documents, signature and photograph will be
digitally stored in DMS. As per c-KYC approach, accounts will be opened in
deactivated mode and will be activated after the second scrutiny at LCPC. However,
for Aadhaar based accounts opened on Digital Banking platform Yono, activation will
be instant provided the account is opened without any manual intervention.

DOCUMENT MANAGEMENT SYSTEM (DMS)

Document Management System (DMS) is an application for managing documents
for storage, retrieval, archival and version management. It is a combination of
workflow and technology that helps to manage and digitally store the documents.
DMS will be used for storing the scanned copies of documents viz. Digital AOF,
scanned copies of KYC documents, CDIF, Terms & Conditions forms, Form 60, DA
1 (for nomination), etc. The uploading of document to DMS is part of the process
flows being designed on digital platform. It has been automated in the account
opening processes and clearly defined in account opening workflows. For other
products, which are under development, the information and process will be shared
in the respective product/ process Circular.
Following functionalities are available in Document Management System:
a) Document Capture / Storage
 Ability to upload documents from customers App.
 Ability to Search, retrieve different versions, version control, management and
history etc.
 Ability to search documents based on the different parameters identified like CIF
number, account number, PAN or Aadhaar Number.

b) Document Preservation/Archival
 Preservation of content against change from deletion, ensure integrity and
enable readability over time. This includes preserving content as per legal
/regulatory mandates from a compliance perspective and the Records
management discipline.
 Purging to be done only 10 years after Account closure and last account activity
and if it is not linked to some other account in the CIF.

Page 21 of 48
Document Retrieval Process from DMS: All documents stored in DMS can be
retrieved with the help of an identifier like Account Number, CIF number or any other
parameter marked at the time of uploading. All bank staff will be able to access DMS
through Lotus app available in app section in CBS. For viewing and downloading of
documents, the branch staff with capability level of 1 and above (Maker) will send a
request which will be authorized by the Checker. The Checker for DMS requests will
be the official with CBS capability level 9 in the operating units.

DOCUMENT ARCHIVAL CENTRE (DAC):

Document Archival Centre is the Centre where all physical documents are stored.
The branches will send the directly to DAC for archival through a newly created DAC
workflow. Post account opening the flow of movement of physical documents from
Branch to DAC is as under:
a) Process of movement of Documents from Branch: For DAC workflow, there is
a process of Maker and Checker. Every Monday (or first working day of the week),
the Maker (A/O official) sends the bunch of forms to the Service Manager (SM)
/Checker in the workflow. The Checker will receive an email-based alert for the
same. The checker will then log into the workflow and verify by click on the Submit to
generate unique Serial Numbers for each form and Packet No. The Checker will then
take a system generated print out of the Packet No and Serial No and the same will
be pasted on the top of the bunch of AOFs.

b) Process of movement of Documents at DAC: The speed post is tracked by

Senior Assistant of the DAC. Packet is tagged as misplaced/delayed during transit if
it doesn’t reach within 7 days of date of dispatch. The Record Keeper then
acknowledges each form along with its components in the work flow. The packet is
then sent to the Senior Assistant in the Archival Unit (AU) of the DAC. In case of any
form is found missing, the Record Keeper escalates it to the In-charge Management
Unit (MU). If claim is valid, then In-charge MU, clicks on inform branch. A notification
goes to the respective Branch Manager, Controller of the branch and the DAC in-
charge. The rest of the forms in the packet are then sent to the Senior Assistant (AU)
for storage. The workflow then generates a box number in which the said packet is to
be stored.
c) Process of Retrieval of Documents from DAC: The Branch can retrieve any
Account opening Document from DAC by entering the details in the Document
Retrieval template in the workflow. The branch controller will have to approve the
request. On receipt of Retrieval request DAC will first get the Xerox copy of the
documents notarized and place the notarized documents in place of original
document in the box and only after that the original document will be sent to the
branch. Once the branch receives the document, branch will acknowledge the
receipt in the workflow.
d) Process of Re-storage of Documents to DAC: For re-storage, branch will use
the re-storage template. And after dispatching the documents to DAC, the branch will

Page 22 of 48
update the Speed Post Tracking No in the workflow. On receipt of the documents at
DAC, DAC will acknowledge the receipt in the workflow.

CHECK YOUR PROGRESS

1. What is DAC
a) Document Archival Centre
b) Document Arrival Centre
c) Document Approval Centre
d) None of the above

2. DAC workflow who are the users in Branch?

a) Maker
b) Checker
c) Both
d) None of the above.

3. Under e-DAC workflow who are the users in DAC?

a) Senior Assistant in the Archival Unit (AU)
b) In-charge Management Unit (MU)
c) Both
d) None of the above.




Page 23 of 48
 TOPIC: 10 YONO CASH CARD-LESS CASH WITHDRAWAL
THROUGH ATMs
A new functionality “YONO Cash” is developed which will be a card-less cash
withdrawal facility through YONO platform where cash is collected at select ATMs.
(YONO Cash Points -YCP).The salient features of the product areas under:

 Customer will originate the YONO-Cash transaction on YONO App or Portal.

Customer can instantly withdraw funds from his account using the YONO Cash
transaction number generated through YONO App or Portal along with YONO
Cash PIN set by the Customer.

 The account holder can withdraw money from select State Bank
ATMs/Recyclers which are enabled for ‘YONO Cash’ functionality (YCPs)

 The Transaction Number for YONO Cash will have a validity of maximum 30
minutes.

 The customer has to withdraw the entire amount in a single transaction i.e., No
partial withdrawals under single transaction number are allowed.

 Under YONO Cash, minimum withdrawal is Rs.500/- (in multiples of Rs.500/-)

with a maximum ceiling up to Rs.10,000/- per transaction, along with a
maximum limit of Rs. 20,000/- per account, per day.

 The facility is available for self-withdrawal at Yono Cash Points. The maximum
permissible limit and number of withdrawals using YONO Cash will be over and
above the existing limits permitted for cash withdrawal using Debit Cards.

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

Page 24 of 48
 TOPIC: 11 BHIM SBI PAY

BHIM SBI Pay’ (UPI App of SBI) is a payment solution that allows any Banks’
customer to send or receive money to/from any other Banks customer using a single
app. BHIM SBI Pay allows you to make easy, instant and secure payments at your
convenience on all 365 days of the year. It facilitates real time money transfer
directly from bank account to beneficiary's account without adding beneficiary (as
required in INB). There are Multi options of money transfer.

It works on the interoperable mobile based payment solution of NPCI aimed at

facilitating instant payments (push, pull and merchant transactions) and providing a
single interface through mobile/web with superior customer experience.

PRE-REQUISITES:

1. Mobile - Android 4.2 and above, with internet connection

2. Mobile number present in the android handset should be registered in Bank
account
3. Valid email address or Alternate Mobile No.
4. Details of debit card linked to the account required for UPI PIN set up

Payments can be made using 3 options:

1.Virtual Payment Address(VPA)*

2.Account number & IFSC Code
3.QRCode

VIRTUAL PAYMENT ADDRESS(VPA)

VPA is a virtual id in the form of uniqueid@sbi. The “uniqueid” is an easy to
remember identifier that you choose for yourself. For example, myname@sbi or
mobilenumber@sbi etc.

TRANSACTION LIMITS ON BHIM SBI PAY:

New registration spending limits apply on Pay money (Debit transactions) for first 7
days:
a) 1st transaction limit: Rs.1000/-
b) Daily transaction limit: Rs.5000/-
c) Maximum 1 transaction per hour

Page 25 of 48
• Max. limit per transaction: Rs.1,00,000/-
• Max. transaction limit per day is Rs.1,00,000/-

REGISTRATION PROCESS:
• Download the BHIM SBI Pay App
• Select your Bank, choose your Bank Account
• Create your Virtual Payment Address (VPA)
• Create your 6-digit app Pin
• Enter other details such as Email address or Alternate mobile number
 Security Question & Answer and Submit

A message “Congratulations, you are now successfully registered on BHIM SBI

Pay!” after successful registration will be displayed.

[*Security question and answer are required to reset App PIN]

If you are a Merchant:
Login to the app, Click on ‘I am a Merchant’ option, fill-up your business details and
you are ready to collect payments from your customers.

Toggle between Consumer and Merchant modes:

• With BHIM SBI Pay, you can collect payments as a Merchant or make payments as
a Consumer by simply using the toggle switch from the Menu icon at the top left

Create UPI PIN (UPIN):

• To create UPIN, enter the last 6 digits of your Debit Card & expiry date
• In case of a Maestro card, no need to enter expiry date
• Enter the OTP for setting UPIN
• Once UPIN is set, you can start making payments
• Separate UPIN has to be set for each of the linked accounts

Pay/Send money using:

• VPA of the beneficiary
• Account Number + IFSC of the beneficiary
• Scanning QR Code of the beneficiary

Steps to Send Money:

• Login to the App & Click on Pay
• Select Debit Account, Payee Address type (VPA or Account and IFSC)
• Enter amount and Remarks(Optional)
[A screen containing Beneficiary/Remitter details appears for verification]
• Click Yes
• Enter UPIN
• Click Submit

Page 26 of 48
Steps to Receive/Collect Money:
• Login to the App & Click on Collect
• Enter Payer VPA
• Enter amount, Remarks and Expiry (Optional)
• Click Submit

[You can collect the money even from the other bank account linked in BHIM
SBI Pay]
Transaction History:
• View your latest 20 transactions & transactions done for a range of dates

Manage multiple bank accounts:

• Select My Accounts option from the Menu, select your bank and simply add it
• If you have only one Bank account, that will be your Default account to make and
receive payments on BHIM SBI Pay
• In case you have multiple accounts, you can select any 1 of them as your default
account, by clicking on “Set as Default” option against the account
• During the ‘Pay’ transaction, select any debit account by swiping through the
accounts displayed on the Home screen

Create and Manage Multiple VPAs:

• To add a VPA, go to the Menu at the top left of your app screen, click on View
Profile.
• Select Add a New VPA and create your new handle, for e.g. mobileno@sbi
• Select the account to link to the new VPA
• Multiple VPAs can be used for different accounts or one VPA can be linked to
different accounts

Steps to Reset PIN:

• In case you forget the app PIN, choose ‘Forgot App PIN’ option on the login
Screen, answer the secret question to reset the login PIN. If you forget the Hint
answer
• In case you forget the UPIN of Account, reset it by clicking on ‘Reset UPI PIN’
against that account

Complaints/Dispute management:
• Login to the App
• Click on View All in Recent Transactions
• Select the transaction and Click Raise Dispute button
• Select Dispute type, enter Remark.
• Click Submit

Page 27 of 48
Escalation Matrix : [email protected]

CHECK YOUR PROGRESS

1. Which is not the pre-requisites for BHIM SBI Pay in the following options?
a. Mobile - Android 4.2 and above
b. Mobile number present in the android handset should be registered in Bank account
c. Valid AADHAAR No.
d. Details of debit card linked to the account required for UPI PIN set up

2. Which option is not true for BHIM SBI Pay?

a. Virtual Payment Address(VPA) is compulsory
b. Account number & IFSC Code is one of the payment option
c. QR Code is one of the payment option
d. MMID is one of the payment option

3. What is the maximum transaction limit per day on BHIM SBI Pay?
a. Rs.10000/-
b. Rs.100000/-
c. No such limit
d. Rs.50000/-

4. A customer is having 11 different accounts in different banks. What is the

maximum number of accounts can be mapped in BHIM SBI Pay?
a. 1
b. 5
c. 10
d. No such limit

5. Which of the following does not required for creating UPI Pin in BHIM SBI Pay?
a. Enter the last 6 digits of your Debit Card & expiry date
b. Enter 10-digit mobile no. registered in the account
c. In case of a Maestro card, no need to enter expiry date
d. Separate UPIN must be set for each of the linked accounts




Page 28 of 48
 TOPIC: 12 GOOGLE PAY APP

Google Pay app (G-Pay App - Earlier named as Google G-Pay App) is Google's new
digital payment. It allows users to link payment apps from Indian banks — it works
with all of the country's 55 banks on India's Unified Payments Interface (UPI).

Google integrated with State Bank of India for its mobile payments app G-Pay. The
integration will allow G-Pay users to now create a SBI UPI Id - @oksbi to carry out
transactions through the Google Pay app.

Requires Android version 4.4 & above

Set up G-Pay
You can use G-Pay to send or request money from family and friends using a mobile
device.
Note: You'll need a Google account, an active Indian (+91) phone number and an
active Indian bank account to set up G-Pay

Get the G-Pay app (Android, iPhone & iPad)

 Download G-Pay on phones running Android 4.4 (Kitkat+) or higher for Android
Phone and iOS 10.0 or higher for iPhone & iPad
 Enter your phone number.
 Sign in with your Google account.
 Follow the instructions to secure your G-Pay app and add a bank account.

Add, change or remove a bank account

 In the top-left, tap your photo > Bank account.
 Tap Add bank account.
 Choose your bank from the list.
 If you have an existing UPI PIN, you will be asked to enter it. If you don’t
remember your PIN, you can click on Forgot PIN and follow the instructions. If
you don't have a UPI PIN, you will need to enter your debit card information.
 Because Maestro debit cards don’t have expiry dates, you’ll need to use 01/49 as
the expiry date.

Remove a bank account

 Open G-Pay.
 In the top-left, tap your photo > Bank account.
 Tap on the account that you want to delete.
 Tap More Remove account

Features:
 Send money
 Get or request money

Page 29 of 48
 Respond to a request for money
 View account balance
 Limits on how much you can send
 View transaction history
 Get rewards
 Choose which offers to get
 Pay bills using G-Pay
 Accept payments for your business
 Recharge your prepaid mobile phone

Tez Mode Transaction

Transfer Money through Tez Mode:
Quickly transfer money with nearby G-Pay users using audio, no need to share your
mobile number. Once chosen this mode of transfer, it calibrates the device for cash
mode.
Other Options:
 User can refer and earn reward for referring your friends.
 User can scan the QR code for any payment at Merchant site.
 User can see his/her QR code and share.
 The user can also escalate the issues/give feedback with screen shots through
this option.
 You can see the setting option by clicking the top left side.
Secure your G-Pay account
Choose how to secure your account
Note: If Google PIN is active, you’ll need to be connected to the Internet to open the
app.
 Open G-Pay .
 In the top-left, tap your photo > Security.
 Select Use screen lock to use your existing pattern, PIN or password that you
use to lock your phone
 Select Use Google PIN to use Google PIN
 You can block the user
 You can manage discoverability of you Mobile
 You can clear G-Pay profile on your device by closing account option

HELP AND FEEDBACK:

Under settings > Help and Feedback, user gets all the support and guidance
and also to raise dispute.
User may also visit https://support.google.com for detailed guidelines and help
of G-Pay App


Page 30 of 48
 TOPIC: 13 YONO LITE SBI

State Bank Anywhere renamed as Yono Lite SBI. It is State Bank’s mobile
banking application for retail users. It is a Retail Internet Banking (RINB) application
offered on Mobile. This application contains majority of important functionalities and
features that are provided on INB platform. A safe, convenient and easy to use
application with a host of features to help users manage their banking on the move.
Available in Google Play Store, iOS App store and Windows marketplace. This app
is suitable for all the personal segment account holders to provide convenience of
banking from anywhere, anytime, at 24 x 7 basis.

Mobile Banking application for Smart Phone customers of SBI supporting English
and Hindi languages. Use your Retail Internet Banking credentials to login or register
afresh through the Register > New User option.

It offers host of financial and non-financial transactions. The important offerings and
features are as hereunder.

Voice Assisted Transactions

• Balance Enquiry
• Mini Statement (Last 10 transactions)
• Mobile Recharge
• DTH Recharge
• Quick Transfer
• View and Pay Bills
• Logout

My Accounts
• Detailed account information (Transaction / Deposit / Loan / PPF / SSA
accounts)
• Mini Statement (Last 10 transactions)
• mPassbook (upto 150 transactions)

Banking
• Funds Transfer within Self Accounts
• Third Party Transfer within SBI
• Inter-Bank Transfer (RTGS / NEFT /IMPS)
• Quick Transfer to Unregistered Beneficiaries using QR Code
• IMPS Transfer (using IFSC & Account Number or Mobile Number & MMID)
• Transfer to mobile number or email id using mCash
• Instant Opening / Closing of Fixed and Recurring Deposits
• Schedule Transactions

Page 31 of 48
UPI
• Pay to VPA
• Pay to Aadhaaar
• Pay to Account No & IFSC
• UPI Payment History & Raise Dispute
• Dispute Status
• Set UPI Transaction Limit

Bill / Merchant Payments

• View and Pay Bills
• Adhoc Payment to unregistered Billers
• Credit Card (VISA) Transfer
• SBI Life Premium Payment
• Bill Payment History
• Add / Manage Billers with Auto Pay facility
• Postpaid Bill Payments
• Schedule Bill Payments

Top-up and Recharge

• Mobile Top-up
• DTH Recharge
• Top-up of State Bank Wallets
• Top-up of Pre Paid Cards
• Manage NCMC card
• Load Money in NCMC card

Services
• Manage Debit Cards Access Channels
• Manage Channel Wise Limits for Debit Card Transactions
• Debit Card Hotlisting
• Create and Manage Standing Instruction
• Change Maturity Instructions for eDeposits
• Online Nomination
• TDS Enquiry
• Cheque Book Request
• Submit 15G /15H online
• Virtual Card facility for secure eCommerce payments
• Aadhaar Linking
• LPG Seeding to A/c Number for DBT

Smart Watch Banking - Enquiry, Funds Transfer and Mobile Top-up

Other Pre-login features
• Registration for New Users
• BharatQR Merchant Payments

Page 32 of 48
 • State Bank Collect
• Bharat Billpay (BBPS)
• mPassbook facility (view passbook without internet connectivity)
• Debit Card Blocking
• Claim mCash
• Online Locker Enquiry
• Contact Us

Registration process: Download the Yono Lite App from Google Play Store/iOS
App Store. There is no registration process for Yono Lite App, as it can be accessed
using INB credentials.

1. Existing SB Anywhere/Yono Lite SBI/INB user:

One time registration is required before log in using existing INB credentials. Please
enter activation code received on registered mobile no., for authentication.

2. New user:
If customer has ATM/debit card:

Enter the required details

>> Authenticate with ATM/debit card credentials

>> Obtain temporary Username
>> Create Password
>> Login using temporary Username and Password
>> Create new Username and Password.

If customer does not have ATM/debit card: visit any branch to obtain
PPK.

 Existing Yono Lite/INB users should perform one time activation in Yono Lite
Personal app with their existing Yono Lite/INB credentials.
 Registration of new users for Yono Lite/INB can be done using Debit Card details
through the 'New User' option.

Page 33 of 48
 APP FEATURES:

Financial Transactions Non - Financial Transactions

Fund Transfers within SBI & other Banks to existing m-Passbook

registered beneficiaries using NEFT/RTGS/IMPS modes
Quick Transfer without having to register the beneficiary ATM cum Debit card hot listing
Post-paid bill payment (with or without bill) Debit Card Blocking
Mobile Top -Up and DTH Recharge Cheque Book Request
Utility Bill payments for already registered billers Generate/cancel/retrieve MMID
mCash Facility Online eLocker Enquiry
Instant Term Deposits - e-TDR/e-STDR and Recurring Aadhaar Linking/LPG consumer
Deposits ID linking
Credit card ( VISA ) transfer with /without one time TDS Enquiry
password (OTP)
Prepaid Cards top-up Online Nomination
Merchant Payments through Bharat QR Creating/retrieving/cancelling
MMID

TRANSACTION LIMITS & CHARGES:

Transaction Per day Limit Overall EasyPIN EasyPIN Charges

Daily Limit overall Limits
(in Rs.) category (Individual
(in Rs.) (in Rs.)
limit overall daily
limits)
Transfer within 2,00,00,000 2,00,00,000 1,00,000 1,00,000 Nil
Self Accounts
Fixed / 99,99,999 1,00,000 Nil
Recurring Deposit
Third Party 10,00,000 10,00,000 1,00,000 1,00,000 Nil
Transfer within SBI
Interbank Transfer 10,00,000 1,00,000 Rs.1 to
– NEFT 10,000-
Rs.1.00 per
Transaction
+Tax
Rs.10,001 to
1,00,000 -
Rs.2 per
Transaction
+Tax
Rs.1,00,000 to
2,00,000 -
Rs.3 per
Transaction
+Tax

Page 34 of 48
 Rs.2,00,000 to
10,00,000 -
Rs.5 per
Transaction
+Tax
Interbank Transfer 10,00,000 Not Applicable Rs.2 lakhs to
– RTGS as Minimum Rs.5 lakhs -
amount is Rs.5 +Tax
2,00,000. Above Rs.5
lakhs - Rs.10
+Tax
IMPS Per Txn Overall 1,00,000 Upto 1,000 –
Limit Daily NIL
2,00,000 Limit Upto Rs.1,001
2,00,000 - Rs.10,000/-
Rs.1/- per
Transaction
+Tax
Upto
Rs.10,001 -
Rs.1,00,000/-
Rs.2/- per
Transaction
+Tax
Rs.1,00,001 to
Rs.2,00,000 -
Rs.3/- per
Transaction
+Tax
Quick Transfer Per Txn Per Txn Limit Upto 1,000 –
Limit 10,000 NIL
10,000 Per Day Limit Rs.1,000 to
Per Day 25,000 Rs.10,000 -
Limit Rs.1/- per
25,000 Transaction
+Tax
Credit Card 1,00,000 1,00,000 Rs.15 Per
VISATransfer transaction
+Tax
mCash 1,101 - Per Transaction 1,101 - Per Rs. 2.50 Per
Transaction transaction
2,202 - Per Day 2,202 - Per +Tax
Day
5,101 - Per Month 5,101 - Per
Month

Page 35 of 48
Merchant Bill Payments 5,00,000 5,00,000 1,00,000 1,00,000 Nil
and Bill Mobile Top Up Per Txn Overall Per Txn Limit Nil
Payment Limit Daily 10000 -
10,000 Limit Overall
50,000 daily limit
50000
Overall daily Nil
limit 50000
SB Prepaid 50,000 50,000 Nil
Cards
DTH Recharge 50,000 50,000 Nil
Postpaid bill 50,000 50,000 Nil
payment
IMPS Overall Daily Limit Nil Nil
Merchant 1,00,000
Payments
Merchant
Payments
SBI Life 1,00,000 50,000 Nil
Premium
Transaction Limit for a 1,00,000 1,00,000 1,00,000 1,00,000
newly added Beneficiary
(First 4 days)

ADDITIONAL FEATURES:

 Payment by Retail INB Customers to EPFO

 Railway Ticket Booking through IRCTC
 Overdraft Facility against Fixed Deposit for NRI Customers
 Maturity Instruction update through RINB
 Message for Closed PPF account
 Restriction of Multiple Session
 Display of PAN Number Under CIF Details in Account Summary Page
 New initiatives: Quick Transfer Facility
 Initiatives: Online Registration of Corporate Internet Banking Facility
 New initiatives: ATM limit/ Usage/ Channel change through Internet Banking
 Resetting of Profile Password at any SBI Branch
 Facility to submit Form 15G / 15H online for TDS exemption
 OTP based Aadhaar linking to all accounts of customer in Pre-login section
 Option to Add Beneficiary after Quick Transfer

Page 36 of 48
TROUBLE SHOOTING:
I have a Dual SIM phone. Whenever, I  Kindly ensure you have working network
try to login to Yono Lite Personal, I get connectivity in either of the dual SIMs
an error "Unable to connect... Please  Ensure that your primary SIM (1st SIM) is
check your device network enabled for network connectivity (2G or
connectivity..." 3G). In case, it is not, kindly swap the
SIMs and try logging into the application
While logging in, below message is  For existing INB customers using Yono
displayed and ‘Existing Anywhere / INB Lite Personal, one time activation from
User’ screen is shown. Why? the Register menu is mandatory to make
use of SB Anywhere Personal app/Yono
Lite App.
This device needs to be authenticated to Activation code to complete the above
perform secure transactions over registration process will be sent to the
internet. mobile number registered with Bank.
For security reasons, application data is
After three invalid login attempts, cleared on three consecutive invalid login
“Application has been reset” error is attempts. Please complete the registration
shown process from the Register menu to start
using the app.
For feedback & suggestions, email at [email protected]
Visit https://mobility.onlinesbi.com for details

CHECK YOUR PROGRESS

1. Per day transaction limit for transfer within self-account in YONO Lite SBI app is
a. Upto 2 crore
b. Less than 2 crore
c. Upto 1 crore
d. Upto 5 crore
2. What is the maximum transaction limit through easy PIN login option through
YONO Lite SBI App?
a. Rs.100000/-
b. Rs.200000/-
c. Rs.500000/-
d. Rs.1000000/-
3. What is true about Quick Transfer through YONO Lite SBI App?
a. Per day transaction limit is Rs.25000/-
b. Per day transaction limit is Rs.10000/-
c. Per day transaction limit is Rs.100000/-
d. Per day transaction limit is Rs.50000/-



Page 37 of 48
 TOPIC: 14 MERCHANT ACQUIRING BUSINESS

"The Business of providing the infrastructure to a Merchant for acceptance of

payments by swiping of card" at a merchant location is referred to as Merchant
Acquiring Business.
Our Bank has installed 6.42 lakh+ terminals as on 30.09.2017 and continues to be
the top acquirer in terms of number of terminals. The terminals are spread over more
than 1,500 locations and cater to majority of the merchant categories viz. Insurance,
Jewelry, Hotels, Educational Institutes, Hospitals, and Petrol Pumps etc. Merchants
range from small kirana stores in upcountry centres to large corporate chains.

KEY TERMINOLOGIES

• Issuer: The Bank that issues cards.

• Cardholder: Customer / Non customer to whom a payment card is issued.
• Merchant: Entity which accepts payments through cards
• Acquirer: The Bank that sets up necessary connection with the merchant and
provides infrastructure to accept payment through Cards (in our case SBI).
• Card Schemes: Provides card payment network, facilitate clearing and settlement
such as VISA/MasterCard/RuPay etc.
• On-Us: When a State Bank Group Debit Card is swiped on SBI PoS terminals.
• Off-Us: When other Bank Card including SBI Credit Card is swiped on SBI PoS
terminals.
• Interchange Fee: A part of the MDR is shared by the Acquiring Bank with the
Issuing Bank, as incentive for promoting payment through card.
• Merchant Discount Rate (MDR): The commission charged by the acquirer to the
merchant or service provider. It is also termed as Merchant Service Fee (MSF).
• Scheme Fee: A fixed charge levied by the Card Network Companies i.e.
Visa/MasterCard/Amexco/RuPay for facilitating interbank payments and routing of
transactions.

WHY POS? (ADVANTAGES)

1. Cardholder
• Need not carry cash.
• Higher balances in the account resulting in higher interest on deposits.
• Saves time and money in visiting bank Branch / ATM to withdraw money and
spend the same at merchant outlet, who has to again deposit the same in Bank.
• The time saved results in lower cost and higher productivity as time saved can be
gainfully utilized.
• Earning of Reward Points.
2. Merchant

Page 38 of 48
 • No Cash handling: saves precious time and money.
• Increased Sales: Customers have tendency to purchase more while using the
card. More sales and higher profits.
• Additional revenue stream from value added services such as Cash @ POS,
Dynamic Currency Conversion (DCC) etc.
• Increased Customer Stickiness: Customers tend to visit merchants accepting
payment through Cards.
• Loyalty Rewards for Customers: Merchants' can offer additional loyalty reward
points to its customers to attract them for repeated purchases.
• No Risk of Forged Notes.

3. Acquiring Bank
• The cost of transaction at Branch or ATM is directed to PoS resulting in reduced
costs.
• The transactions on the PoS gets settled to the merchants SBI Current Account,
leading to higher CASA earnings and fee based income.
• Increased Visibility for the Bank.
• Gives us opportunity to cross-sell other products such as Business Debit Cards,
Mobile Banking, etc. to the merchants and improving the wallet share with us.
• De-cluttering of branches and ATMs.
• Better Cash Flow management in CC accounts.
• Arrest the flight of business to other banks due to not offering the facility.
• Arrest the flight of business to other banks due to not offering the facility.
• An Active PoS helps in maintaining Merchant Relationship, improving merchant’s
loyalty and checks diversion of funds in case of Credit limits.
• A SBI Debit Card swiped on SBI PoS helps in keeping the funds within the Bank.
• PoS helps in offering OD facility to Merchants using Power PoS Current Accounts,
earning interest income.

Page 39 of 48
TYPES OF TERMINAL ON OFFER (OUR PRODUCT OFFERINGS)

*terminals taken exclusively for Cash@PoS have high rentals

SERVICE FEES

Merchant Discount Rates* – With effect from 01.01.2018.

(Refer e-Circular No. 1223/2017-18 dated 15.01.2018)

Sl. Type of Small Merchants (ATO of Other Merchants (ATO of

No Transaction previous Financial Year previous Financial Year
. <=Rs.20 lakhs) >Rs.20 lakhs)
ON US OFF US ON US OFF US
POS QR POS QR POS QR POS QR
Debit Card
1 Txn. 0.40 0.30 0.40 0.30 0.40 0.30 0.40 0.30
<=Rs.2000**
2 Txn. >Rs.2000 0.40 0.30 0.40 0.30 0.90 0.80 0.90 0.80
3 Txn. >Rs.2000 0.40 0.30 0.40 0.30 0.90 0.80 0.90 0.80
4 Credit Card NA NA 1.90 1.90 NA NA 1.90 1.90
5 Forex Txn. Debit 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50
or Credit Card

Notes:
*1. GST is recovered in all the cases separately.
**2. In case of Debit Card Transactions of less than or equal to Rs.2000/- MDR is not
charged to the Merchant but reimbursed by GoI.
3. MDR for all payments to GoI upto Rs.1 lakh is claimed from RBI (example
Railways, post offices etc.)
4. MDR from Merchants of Oil Marketing Companies are not recovered from the
Merchants, but from the OMCs.

Page 40 of 48
5. MDR on Defence/Central/State Police Canteens are waived from 1.10.2017 for a
period of 3 years, subject to annual review.

OTHER VALUE ADDED SERVICES

Cash Withdrawal at PoS (Cash@PoS)

• Cash can be withdrawn by our customers at POS terminals, against swiping Debit
Cards or Pre-Paid Cards (excepting gift cards).
• Maximum cash that can be withdrawn per card per day is limited to is Rs.1000/-.
At Tirer1 and Tier 2 cities. Rs.2,000/- at all other centres. The facility can be
availed by the customer, irrespective whether he makes a purchase from the
Merchant or not. This facility is also available at selected petrol pumps and
Customer Service Points.
• Minimum amount of withdrawal is Rs.100/- and in multiples of Rs.100/- maximum
Rs.1000 / Rs.2000 per day as applicable.
• Convenience Charges will be recovered from the customer @ 1% of the
transaction + GST Maximum Rs.5/- plus GST (Refer e-Circular No.1486/2017-18
dated 16.03.2018 for complete details.)
• Amount of Cash withdrawn, along with the convenience charges will be debited to
the customer’s account by the Bank, from the back end.

Dynamic Currency Conversion

DCC is a facility which enables the Acquiring Bank to convert the transaction amount
(INR) into the Home currency of the cardholder on the terminal itself at the time of
swiping when a foreign card (card issued by a Foreign Bank outside India) is used.
In a normal (non DCC) international card transaction, the Issuing Bank converts the
transaction amount from transaction currency to its home currency and earns the
entire exchange rate remuneration. (Refer e-Circular no. CS&NB/CS&NB-
MAB/23/2014 - 15 dated 06-08-2014 for further details)

Acceptance of AMEX Cards

Strategic alliance with AMEX, where SBI is the Merchant Acquiring Bank and AMEX
is the Card Scheme. As a result of this arrangement, our POS terminals have been
enabled to accept the cards of all four major Card Schemes i.e. Visa, MasterCard,
RuPay and AMEX. (Refer e-Circular no. CS&NB/CS&NB-MAB/4/2016-17 dated 27-
05-2016, for further details)

Power POS
• Merchants are generally reluctant to open Current Account with our branches due
to our stipulation relating to keeping minimum balance in the current account.
They, instead request for crediting the POS proceeds to their existing accounts
with other banks through NEFT/RTGS.

Page 41 of 48
• In view of the above, a POS terminal related current account ‘POWER POS’ has
been developed with the Product Code- 5095- 2431 and is available for all the
segments.
• The product also has the feature of Overdraft facility and Point of Sales (POS)
linked overdraft can also be sanctioned in this account.
• The account may be opened with Zero Balance. Minimum QAB shall be
Rs.1000/-
• For further details, please refer e-Circular No. 131/2013-14 dated 14.05.2013.

POS Linked Overdraft

• Merchant Acquiring Business provides number of avenues for the Bank to earn
fee based income and also to increase our asset base and liability base.
• To encourage Merchants to book more business through our POS, an overdraft
linked to POS terminal is being offered to them to increase their turnover, vis-à-vis
to increase transactions through our POS machines.
• This overdraft facility is extended for the new Merchants acquired through POS.
This additional facility will not be available to our existing customers, who have
already availed Cash Credit Facility with us.
• This Overdraft facility will help the branches to increase the number of POS
terminals and also increase the credit off take.
• Please refer the e-Circular No. 72/2013-14 dated 23.04.2013 for further details.

CHECK YOUR PROGRESS

1. Who are the stake holders in MAB transactions?

a) Card Holders
b) Merchants
c) Bank
d) All of the above.

2. Who is the Issuer in MAB Transactions?

a) The Bank who provides the POS Machine to the Merchant
b) The Bank who gives Loan to the Merchant
c) The Bank / Credit Card Company who issues Card to the Consumer
d) The Bank in which the Current Account is maintained by the Merchant

3. What is Interchange Fee?

a) Commission recovered by Acquiring Bank from the Merchant.
b) Service Charges recovered by Card Scheme Companies from Acquiring Bank.
c) Commission paid by Acquiring Bank to Issuing Bank
d) Cash Back provided by Acquiring Bank to the Merchant



Page 42 of 48
 TOPIC: 15 BHARAT QR

Bharat QR is a QR (Quick Response) code based solution wherein the customer

makes payment to merchant by scanning a static or dynamic QR code. It is
interoperable among major Card schemes i.e. Visa, MasterCard and RuPay. Bharat
QR merchant application is downloaded from play store on merchant's Smart phone
(presently Android phones) and Bharat QR customer application is installed on
customer's mobile phones.
Subsequent to the initial rollout, as directed by Govt. of India, NPCI released a
common specification for Bharat QR and UPI to enable the merchants to accept
payment from both Bharat QR and UPI customers by scanning of Bharat QR code.
Accordingly, Bharat QR Version 4.0, was released. The bank has accordingly
upgraded both the “Bharat QR Merchant-H” and “Bharat QR Merchant-W” to
Bharat QR Version 4.0 specifications and merchants can now accept payment
through the Bharat QR Customer Apps, as well as through the various UPI Apps viz.
SBI Pay, Bhim App, Tez etc.

FEATURES OF THE PRODUCT

 Accept payments directly to your account ‐ No need to spend time to deposit cash
into your account.
 Escape from hassles of receiving payments in cash ‐ No risk of forged notes
 Escape from the hassles of keeping the record of charge slips – Merchant gets the
notification in his Bharat QR App.
 Card-less transactions: Scan & Pay
 Less instances of charge backs. As the customer himself/herself initiates the
payment, the occurrence of chargebacks is minimized.
 Safe and Secure
REQUIREMENTS

The merchant needs to have the following to start using Bharat QR-SBI:
A Smart mobile phone (Presently Android).
A data connection (2G, 3G or 4G).
Bharat QR Merchant application installed on Merchant mobile phone.
Account with SBI
GETTING BHARAT QR-SBI

The process for on-boarding a merchant for Bharat QR acceptance is same as is in

case of the other PoS terminals. Merchant can contact nearest SBI branch for Bharat
QR.

Page 43 of 48
SERVICE FEE
Monthly Service Fee/Rental - Nil
Commitment Charges - Nil
The MDR for Bharat QR Transactions, shall be as under

Transaction amount Bharat QR Bharat QR

slab card-based transactions UPI transactions
Up to Rs. 2,000 As per e-Circular 0.25%
Above Rs. 2,000 No.R&DB/CS^NBMAB/37/ 0.65%
2017-18 dated 15-01-2018

The above MDR, will be subject to:

a) Minimum MDR for UPI Transactions will Re.1/-
b) In terms of the recent RBI/GoI guidelines on MDR, Bank shall claim a
reimbursement of MDR from RBI /GoI, for transactions less than or equal to Rs.2000
and MDR shall not be charged to the Merchant.
For exceptional cases, as per the extant instruction, the discretionary powers for
approval of concessional MDR shall remain with DMD (DB&NB)
(CS&NB/CS&NBMAB/21/2016-17 dated 27th December 2016). The
Circles/CAG/MCG may recommend for concessions duly examining the cost benefit
analysis and value of relationship to MAB vertical at Corporate Centre for approval.

BENEFITS FOR THE CUSTOMERS

Customers of any bank having BHARAT QR App can pay by scanning "BHARAT
QR" ( In case of SBI account holder BHARAT QR is available on home page of
"State Bank Anywhere" app). To add to it, they don't need to carry multiple cards.
Just link the cards to the app and select the appropriate card during the payment.

STANDARD OPERATING PROCEDURE (SOP): MERCHANT ONBOARDING FOR

BHARAT QR CODE

SOP for Existing Merchants:

i) Branch/SBIPSPL field staff will contact the existing merchants for deployment of
Bharat QR and obtain application, as is being taken for installation of additional
PoS terminals.
ii) Branch will exchange the duly signed arrangement letter with merchant.
iii) After sanction by approving authority, it will be routed to TSPs through MAB
vertical in MAB Workflow software.
iv) While entering in the MAB workflow software, terminal type has to be selected as
“Bharat QR” as additional terminal.
v) MID, TID and QR code will be generated by the TSPs.
vi) Printing of QR Code and procurement of Standees will be done.

Page 44 of 48
vii) ‘Welcome Kit’ containing a standee (tent card) of Bharat QR, 02 big decals & 01
small decal of Bharat QR, FAQ, Arrangement Letter (2 copies) and User Manual
will be sent to merchant.
viii)QR Codes along with standees/tent Card will be deployed at merchant locations
and necessary training will be given by the TSPs field engineers.

SOP for New Merchants:

i) All new PoS terminal Merchants have to be given QR Code by default along-with
the PoS Terminal.
ii) In case of small Merchants, efforts should be made to push QR Code only, as it
has no CAPEX and less OPEX.
iii) Merchant on-boarding process for Bharat QR Code will remain the same as PoS
terminal (Refer - e-Circular No CS&NB-MAB / 32 /2016-17 dated 7th March
2017). While entering in the MAB workflow software, terminal type selected as
“Bharat QR”
iv) After sanction by approving authority, it will be routed to TSPs through MAB
vertical in MAB Workflow software.
v) MID, TID and QR code will be generated by the TSPs.
vi) Printing of QR Code and procurement of Standees will be done.
vii) ‘Welcome Kit’ containing a standee (tent card) of Bharat QR, 02 big decals & 01
small decal of Bharat QR, FAQ, and User Manual will be sent to merchant.
viii)QR Codes along with standees will be deployed at merchant locations and
necessary training will be given by the TSPs field engineers.

Where do merchants need to call in case of operational issues in Bharat QR

terminals?

A. Worldline (Service Provider to SBI) Call Centre: Contact details are available
on the Worldline sticker pasted on the Standee or printed on the back of Tent card
having Toll Free No. : 18602332332 Email: [email protected]
SMS: Text the message HELP to 56070 from registered Mobile Number

B. Hitachi (Service Provider to SBI) Call Centre: Contact details are available on
the Hitachi sticker pasted on the acrylic sheet having merchant QR code. Toll
Free No. : 18004250727 Email: [email protected] SMS: Text the
message POS to 56677 from registered Mobile Number (To receive call back from
customer service.



Page 45 of 48
 TOPIC: 16 SBI FASTAG

 SBI FASTag is a device that employs Radio Frequency identification

technology(RFID) for making toll payments directly from the prepaid or savings
account linked to it.
 It is affixed on the windscreen of the vehicle and enables one to drive through the
plazas, without stopping for cash transactions.
 Tag need to be purchased from Bank’s authorized tag agents and if it is linked to
the prepaid account, then recharge / top up of the tag to be done as per one’s
requirement.

PURPOSE
 For the purpose of collection of Toll Tax electronically and digitally.
 SBI FASTAG is a devise that employs Radio frequency identification (RFID)
technology for making toll payments directly from prepaid or Savings accounts
linked to it.
 FASTAG is a 10x5 cm, rectangle shape , multilayered Tag, containing chip and
antenna inside it’s layers. It is pasted on the windscreen of the vehicle. Through
RFID technology ,the tag reads the toll to be collected.

PROCESS
While passing through dedicated ETC lane at Toll plaza, the vehicle need not be
stopped for payment of toll. The toll due is read by chip in the tag through RFID
technology and required amount is paid by debit to the prepaid or Saving Account
linked to it.

 Tag provides you with the convenience and ease during transit through toll plaza
along with saving of time, fuel and cashless payment.
 SBI FASTAG is presently operational at 346+ toll plazas across national
highways.

HOW TO GET A TAG

 Customer care help number is 1800110018.
 On calling above number the customer care executives will guide you to nearest
POS location.
 List of POS locations are available on the app under POS/ Agent locations
 Customer has to visit any POS location with KYC documents and vehicle RC
book.

FEATURES OF SBI FASTAG

 No cash need to be paid and exact toll amount is deducted from linked prepaid
account.

Page 46 of 48
Promotional cash back:
st
 All SBI FASTag users get a monthly cashback of 5% of toll transactions till 31
March2019.

Faster Transit:
 Auto debit of exact amount of toll tax and no need to stop for tax payment at Toll
enables faster transit

SMS alerts:
 Instant SMS alerts on registered mobile number for toll transactions, low balance
etc...

Online Recharge:
 SBI FASTag can be recharged online through credit card / debit card / Net
Banking / IMPs etc...

Charges
 Issuance fee of Tag across all categories (inclusive of taxes): Rs.200
 A minimum convenience fee will be levied for all transactions
 Security amount will be refunded at the time of closure of RFID Tag.
 Validity of Tag is unlimited and it can be used till Tag is readable.
 Other charges as under :

S. Vehicle Particulars Security Minimum

No class no amount balance

1 4 Car/Jeep/van/Tata Ace etc... LCVs 200 100

2 5 Light commercial Vehicles 300 140

3 6 Three axle commercial vehicles 400 300

4 7 Bus / Truck 400 300

5 12 4 to 6 axle 400 300

6 15 7 or more axle 400 300

RISKS AND MISCELLENEOUS:

• In case of loss/ theft of vehicle, SBI FASTag holders should immediately lodge
FIR with police and should inform the contact centre immediately about the same
with relevant documents. In turn contact will block the Tag from further usage. For
the intermittent period, Bank is not liable for any loss that is caused to the owner
due to vehicle theft.

Page 47 of 48
 • In case Toll plaza is not accepting Tag payment/ RFID not working, Plaza unable
to read Tag etc... The same may be informed to help line number or nearby POS
agent immediately. In the meantime customer may pay Toll in cash.
• Customer is eligible to get reward points for topping up Tag as per his eligibility.

CHECK YOUR PROGRESS

1. What is SBI FASTag?

a) An initiative to digitize toll transactions at toll plazas
b) Initiative to collect Toll Tax electronically
c) An effort to curtail Time for payment of Toll Tax at Plaza
d) All options are correct.

2. The Technology that is used in SBI FASTag to read the Tag is

a) QUORUM
b) RFID
c) NETC
d) NPCI



Page 48 of 48
 CERTIFICATE PROGRAMME-ASSOCIATES
(OTHER THAN CASH-IN-CHARGE AND THOSE DEALING IN FOREX)
MODULE-C
MARKETING
Prepared by
State Bank Institute of Consumer Banking, Hyderabad
 MODULE-C
MARKETING
INDEX
Chapter Topic Page
No
11 Basics of Advances And Retail Loan Products 1-4
Marketing of Asset Products, Cross Selling 5-19
Home Loan And Variants: NRI Home Loan, SBI Realty, SBI Maxgain,
Home Loan Top Up, SBI-Tribal Plus, Earnest Money Deposit (EMD)
Scheme, SBI Flexipay Home Loan, Pradhan Mantri Awas Yojana, Loan
Against Property, Loan Against Property, SBI Privilege Home Loan & SBI
Shaurya Home Loan, Home Loan To Non-,Salaried Segment, Insta Home
Top Up Loan, Smart Home Top Up Loan, SBI Bridge Home Loan
AUTO LOAN & VARIANTS :SBI Car Loan Scheme, NRI Car Loan 20-23
Scheme, SBI Loyalty Car Loan Scheme, Assured Car Loan Scheme,
Certified Pre-owned Car Loans, SBI Two Wheeler Loan Scheme, High
Value Super Bike Loan, SBI Car Loan Lite
Education Loan Schemes :SBI Student Loan Scheme, SBI Scholar Loan 24-27
12 Scheme, SBI Global Ed-vantage Scheme, SBI Skill Loan Scheme, Vidya
Lakshmi Portal (VLP), Credit Guarantee Fund Scheme For Education
Loans (CGFSL)
SBI Personal Gold Loan Scheme 28
Unsecured Loans 29-32
Xpress Credit Scheme, SBI Insta Credit,“ XPRESS POWER”, XPRESS
ELITE, XPRESS CREDIT - IT Employees
SBI Pension Loan :Jai Jawan Pension Loan, Pension Loan To Coal 33-35
Mines, Provident Fund (CMPF) Pensioners, Overdraft Facility In Salary
Packages
Other Demand Loans :Loan Against NSCs/KVPs, Loan Against Life 36-38
Insurance Policy, Loan Against Bank’s Time Deposits, Online Overdraft
Against TDR/STDR,Cross Selling
Marketing Of Liability/ Digital Products : 39-58
Savings Bank Accounts, KYC (Know Your Customer),Periodical Updation
of KYC
Variants Under Savings Bank Account :Savings Plus Account, Basic
Savings Bank Deposit Account (BSBDA), BSBDA-Small Accounts, Minor’s
13 Account New Products: Pehla Kadam and Pehli Udaan
 Current Accounts, Types Of Current Accounts
Term Deposit : SBI CAPGAINS Plus, SBI Flexi Deposit
Recurring Deposit Scheme , SBI Tax Savings Scheme, 2006
Annuity Deposit Scheme, NRI Deposits
Marketing of Digital Products
Importance and market share of Govt. Business, Marketing of Govt. 59-66
14
Business Products
 Chpater-11: Basics of Advances and Retail Loan Products
State Bank of India aims at providing affordable retail loan products for meeting credit
needs of the Indian nationals, NRIs and Persons of Indian Origin, and people belonging
to every economic stratum, for fulfilling their lawful aspirations in accordance with the
Bank’s judgment of loan repayment capacity of the borrowers.

Urbanisation, increase in disposable incomes along with growing aspiration levels and
consumerism provides significant business potential to market Housing and other P-
Segment Loans. Our brand value, fully computerised extensive branch network and
large customer base also enable us to leverage these strengths to garner a higher
share of the tremendous growth potential in this sector.

PBBU and REHBU asset products encompass product lines like (i) Home Loans (ii)
Auto Loans (iii) Education Loans (iv) Personal Loans. The first three product lines are
for acquisition/ financing of a specific product. The fourth product line is general
purpose or non-specific, including loans like flood loans. Similarly Education Loans,
Reverse Mortgage Loan, Loan against Pension etc. address the credit needs of
different age groups of the population. However, the Bank does not give loans for
speculative purposes. The Bank aims at being No. 1 player in Retail Loan market by
adopting the following strategies:

● Launching innovative and customer friendly products with value added features to
improve our product profile and to suit the specific requirements of various target
clienteles.
● Ongoing review and modification of existing Schemes
● Periodic updation of instructions, scheme-wise, to improve awareness about the
products at the branches
● Periodic training of operating personnel on an ongoing basis to hone their product
awareness as also marketing skills
● Thrust on marketing High Value and Big Ticket Loans
● Special focus to establish tie-ups with Central/State Governments, reputed
corporations and other important institutions for granting P-Segment Loans to their
employees
● Entering into tie-ups with various reputed builders, auto manufacturers, auto dealers,
etc.
● ‘Schemes targeted at specific customer groups with concessional interest rates,
processing fee and margin.
● Special delivery platforms like Personal Banking Branches, Personal Banking
Division, NRI Branches, Specialised Housing Finance Branches, Home Loan Sales
Team (HLST), and Multi Product Sales Team (MPST) for aggressive marketing.
● Centralised Processing Centres (RACPCs / RASMECCs) set up for quick processing
and sanction of loan.
● Adequate discretionary powers with various functionaries for sanction as also for
improvement in pricing to reduce the Turnaround Time

Page 1 of 66
● Strengthening of business sourcing capabilities through development of new business
sourcing channels including cyber channels, individuals and institutional marketing
consultants, marketing associates, loan Counselors on fee payment basis.

Retail (P-Segment) Loans have several distinct features vis-à-vis loans to other
business segments as below:

i) Eligibility criteria: Eligibility criteria applicable to borrowers under various P-Segment

Loan schemes vary from each other depending upon the nature of the loans and
their purpose.
ii) Purpose of Loan: Varies from Scheme to Scheme e.g. Housing and Car Loans etc.
are meant for asset acquisition whereas Personal Loans are generally availed for
consumption. Education loans are extended for pursuing studies in India and abroad.
The Education Loan scheme has been formulated as per IBA/RBI guidelines.
Housing Loans schemes would aim at facilitating achievement of objectives spelt out
in the National Housing and Habitat Policy of Govt. of India.
iii) Appraisal/Assessment: Assessment is done primarily on the basis of repayment
capacity of the borrower, the current verifiable income of the borrower (except in
respect of Education Loans) and availability of required margin (except in respect of
Personal Loans) etc. Credit Scoring Models are being made use of for
assessing/rating the borrowers in respect of schemes like Personal Loans and loans
against Mortgage of Immovable Property, Auto Loans and Home Loans. The Model
scores the applicants on the basis of information on Personal Data, Net Monthly
Income, Net Worth, Organization (employer), and Banking History etc. Income of the
spouse and other family members are also generally considered to arrive at the
repayment capacity of the borrower, provided the spouse and other family members
join as co-borrowers or guarantors.
iv) Delegation of financial powers: Financial powers are vested with various authorities
for different Schemes. Further, LHOs have been authorised to vest the discretionary
powers, scheme- wise, for branches upto scale IV incumbency, subject to overall
guidelines issued by the Corporate centre.
v) Disbursing branches: Sanction and disbursal of loans under certain schemes is
restricted to specialised/ identified branches. LHOs have been vested with the
powers to identify suitable branches over and above those specified by the
Corporate Centre.
vi) Nature of facility: The loans are made available by way of Overdraft, Demand Loan
or Term Loan (medium or long term). These could be clean or secured, depending
upon the scheme.
vii) Pricing: The loans are made available either on floating rate or fixed interest rate
based on the customer’s option in this regard. A combination of fixed and floating
interest rates is also offered. In respect of floating rate loans the interest rate is linked
to the Marginal Cost of Fund based lending rate (MCLR). The spread above the
Base Rate may vary depending upon scheme, tenure, amount and also market

Page 2 of 66
 conditions. Further, the rates would be higher in the case of clean loans and loans
which carry higher risks due to relative illiquidity of security..
viii) Fixed Interest Rates: Fixed interest rates are a special feature of P-Segment Loans.
Loans are granted on fixed interest rate basis under some specific schemes like
Xpress Credit or Auto Loan.
ix) Maturity of Advances: While the maturity of term loans should not normality exceed 8
years, in respect of Housing Loans, the repayment period is now permitted upto 30
years. In respect of Educational Loans, the loan is normally repayable in 15 years
after commencement of repayment. As the repayment would commence after a
moratorium period, which generally covers course period plus 1 year or 6 months
after getting employment, whichever is earlier, the tenure of Education Loans may
also extend to 20 years.
x) Repayment: Repayment in P-Segment Loans is generally on the basis of Equated
Monthly Installments (EMIs), which consist of principal and interest components.
(a)The Bank may use repayment option through stepped-up/stepped-down monthly
installments, balloon repayments etc., in sync with anticipated income of the
borrower during the loan tenor (b) In case of Reverse Mortgage loan Scheme,
repayment of loan is not insisted upon during the lifetime of the borrower. The loan is
recovered through sale of mortgaged property if legal heirs do not come forward to
repay the loan.
xi) Prepayment: Prepayment is permitted freely in some schemes like Home Loans but
in some other, pre-payment charges are levied like in Auto Loans.
xii) Security: Obtention of security depends on the particular scheme and the purpose of
the loan.
xiii) Take-over: Take-over of P-Segment Loans is permitted in respect of Housing Loans
and Education Loans.
xiv) Outsourcing: Some of the processes viz., Loan sourcing, New Channels for loan
collection and recovery and Processes like income verification etc., may be
outsourced (KYC compliance would not be outsourced as it is a core banking
function).

In view of the Bank’s thrust on P-Segment Loans and the steady and significant growth
expected, the Bank would periodically undertake assessment of concentration risk in P-
Segment advances. The risk management parameters i.e. Credit risk/market
risk/operational risk in respect of lending to P-Segment borrowers will also be examined
and reviewed annually by the Business Group in consultation with the Risk
Management Dept. In Retail Scoring, proposals are given 10 grades from 1 to 10 and
classified into three categories i.e. (a) Clear sanction (b) may be considered after credit
enhancement or application to be referred to next higher authority and (c) Decline

In view of the importance of retail Loans on our Bank’s overall business level and also
on the profitability, the operating functionaries need to equip themselves with requisite
product knowledge to penetrate the market with more aggression and efficiency.

Page 3 of 66
CHECK YOUR PROGRESS

1. The Bank does not give loans for

a. Speculative purpose
b. Education
c. Construction of House
d. Purchase of Car

2. PBBU and REHBU product line does not include

a. Kisan Credit Card
b. Personal Loans
c. Auto Loans
d. Home Loans

3. What are the factors which provide business potential to market Housing and
other P-Segment Loans?
a. Urbanisation
b. Increase in disposable income
c. Growing aspiration levels and consumerism
d. All the above

4. MPST stands for

a. Multi Products Sales Team
b. Multi Process Service Team
c. Mutilated Performance Social Task
d. Multi Product Socializing Team

5. EMI consists of
a. Principal only
b. Interest only
c. Principal and Interest component
d. Half of Principal and half of Interest




Page 4 of 66
 Chapter-12: Marketing of Asset Products, Cross Selling
HOME LOAN AND VARIANTS

Home Loan plays an important role in helping one with easy availability of fund to
acquire his or her dream home. Our customers may want to either buy a new home or
construct one. After completion of a few necessary formalities starting like submitting
the application for disbursement of loan amount, keeping basic documents ready,
enabling the financier to complete valuation and title search of documents etc, they will
be able to own their dream home in a hassle free way.

Home Loan amount varies from person to person depending on the repayment
capacity, age and income of the loan seeker, his/her dependents and so on. The loan is
available to those who are eligible for a contract such as any person who is not less
than 18 years. Loans are offered to salaried individuals, professionals or businessmen
or self-employed individuals and NRI’s.

SBI is the largest Mortgage Lender in India, which has helped over 30 lakh families to
achieve the dream of owning a home.
Our Values

 Trust
 Transparency
 Integrity
 Excellence

Value to Customers

 Wide Product Range

 Interest Calculation on Daily Reducing Balance
 Overdraft Facility available
 Low Interest Rates
 Low Processing Fees
 No Hidden Costs
 No Pre-payment penalty

The details of various products we have under “Home loan Scheme” are mentioned
below:

Page 5 of 66
 HOME LOAN PRODUCT
USP
 Lowest EMI
 Longest Tenor
 Minimum Age 18 years
 Low Processing Fee
 Huge number of approved projects
 Transparent formalities
Purpose  purchase a plot of land for purpose of construction of house
 purchase /construct a new house/flat
 purchase an existing (old) house / flat or extend an existing
house
repair or renovate an existing house /flat
 takeover of Home Loans from other Banks/HFCs/FIs
 Furnishing/interiors as part of the project cost.
 Re-imbursement of investment made from own resources
during the preceding twelve months for purchase of
house/flat/construction of house/repair and extension of
house.
Eligibility Individual(s) over 18 years of age with steady source of income,
including persons engaged in agriculture & allied activities. Loan can
be sanctioned jointly with related or unrelated coborrowers subject
to fulfillment of some conditions.
Loan Tenor Upto 30* years subject to liquidation of the Home Loan before the
borrower reaches the age of 70 years.

Loan Amount Maximum Loan amount depends on i) EMI/NMI ratio ii) LTV ratio iii)
Application Amount. The sanctioned amount is the lowest of the
three. EMI/NMI ratio varies from 20% to 75% depending on
customer’s income, occupation and CIBIL score. LTV is 90% for
loan upto Rs.30 lacs, 80% for Rs.75 lacs & 75% for loan above
Rs.75 lacs.
Moratorium Maximum 48 months
Security Equitable Mortgage of property to be financed

Page 6 of 66
 NRI Home loan
USP
 Lowest EMI
 Longest Tenor
 Minimum Age 18 years
 Low Processing Fee
 Huge number of approved projects
 Transparent and hassle free formalities
Purpose Same as Home Loan Scheme
Eligibility Individual (s) over 18 years of age with a steady source of income
who • are Non Resident Indians (NRIs) holding a valid Indian
passport • are persons of Indian Origin (PIOs) holding a foreign
passport
Loan Tenor is a maximum period of 30 years subject to the stipulation that
Tenor the loan should be liquidated by the age of 60 years or by the age of
retirement, whichever occurs earlier.
Minimum Minimum Rs. 3 lac & Maximum: No upper ceiling. LTV norm for
& salaried: 80% upto Rs.75 lacs and 75% for above Rs. 75 lacs. For
Maximum non-salaried, 75% upto Rs.75 lacs and 70% for above Rs. 75 lacs
Loan
Security EM
Special NRIs can appoint a Power of Attorney to execute documents in their
Feature absence.

SBI REALTY
USP
 Home Loan for purchase of plot for construction of house
 Minimum Age 18 years
 Minimum Loan Rs. 5 lacs and Maximum Rs.15 crores
 High LTV
 Flexible Home Loan for Construction
 5 years to construct house
 Transparent formalities
Purpose i) Purchase of a residential plot located within the municipal/
corporation area of Urban/Metro Centres with population of 1 lac and
above as per the latest available census data for the purpose of
construction of a house.
ii) Purchase of Plots located outside municipal/corporation area will be
permitted under specific conditions.

Page 7 of 66
Eligibility As per Home Loans scheme .However , maximum age : 65 years
Loan Tenor Maximum of 120 months. No moratorium period will be permitted
in any case
Minimum & Minimum Rs. 5 lac & Maximum Rs. 15 crore; It depends on
Maximum EMI/NMI ratio & LTV Ratio
Loan
Moratorium No moratorium; repayment to start from next month
Security EM
Special Construction to be completed within 5 years from the date of 1st
Feature disbursement

SBI MAXGAIN
USP
 Eligibility: Both Existing / Prospective customers having minimum
balance of Rs.5000/- in their SB/CA
 Can be used as a running account with INB, cheque book etc. after
full disbursement of the loan.
 Drawing power reduced on monthly basis. Customers will get the
benefit by saving Home Loan Interest
Purpose  Same as Home loan Scheme
Eligibility Facility available for new Home Loans of Rs.20 lacs and upto
Rs. 3 lacs from applicants who are
(i) Existing customers with minimum balance of Rs.5000/- in
their SB / CA.
(ii) Prospective customers who open SB / CA with an initial
minimum deposit of Rs.5000/-.
Loan Tenor Upto 30* years subject to liquidation of the Home Loan before
the borrower reaches the age of 70 years.

Minimum & Minimum Rs. 20 lac & Maximum Rs.3 lacs

Maximum Loan
Moratorium As per Home Loan Scheme
Security EM
Special Feature INB & Cheque book to be issued after full disbursement

Page 8 of 66
 HOME LOAN TOP UP
USP
 Additional loans to existing Home Loan customers against the
security of the housing unit for meeting their personal needs like
expenditure on education, marriage, health care,
renovation/furnishing of the house
 Cheapest interest rate
 Available as Term Loan & Overdraft
 Coverage for new customers also who have availed high value home
loan
 Long repayment period
 Hassle free loan now available online
Purpose Any personal purpose such as meeting expenditure on
education, marriage, health care, repair/renovation/furnishing of
the house, etc. other than speculative purpose
Eligibility i) Category I- All new Home Loan customers, acquiring Ready to
move in Properties, simultaneously along with new Home Loans
and all existing Home Loan customers having less than 12
months satisfactory repayment track record
ii) Category II- All existing Home Loan customers with a
satisfactory repayment record of at least one year
Loan Tenor Residual tenor of Home Loan or 15 years whichever is higher
Minimum & Category I- Minimum Rs. 2 lac & Maximum Rs. 50 lac
Maximum Category II- Minimum Rs. 2 lac Maximum- no upper ceiling
Loan
Moratorium No moratorium
Security Upto Rs. 5 lac no extension of EM; beyond that Extension of
mortgage
Special At any point of time not more than two loans will be allowed to
Feature exist

Page 9 of 66
 SBI-TRIBAL PLUS
USP
 Home Loans to people residing in Hilly /Tribal areas
 No Mortgage of land
 Loans given against Third Party Guarantee
 Maximum loan Rs.20 lacs
 Maximum Loan tenure 15 years
Purpose  Purchase or construction of a new house / flat (without
mortgage of land)
 Purchase of an existing (old) house / flat which is not more
than 10 years old
 Repair /Renovation/extension of an existing house or flat.
Eligibility Individual(s) who are aged over 21 years of age (but not more than
60 years) who are
1. permanent employees of Central or State Governments / Public
Sector undertakings (PSU) / reputed Private Sector undertakings/
Selected Corporates and have put in a minimum of 5 years
service, subject to availability of check-off or if no check off, atleast
the salary account to be with us.
2. For corporates minimum Cibil score of 700 is required
2. Professionals, self-employed, businessmen and agriculturists
etc. with minimum experience of 5 years in their respective sphere
of activity and who (1) maintain satisfactorily conducted deposit
accounts with us with an average balance of Rs.5000/- for the last
two years or (2) maintains loan accounts which are satisfactorily
conducted for a minimum period of 2 years (without any instance
of overdues and bouncing of cheques etc.) and classified as
Standard Assets.
Loan Tenor For Salaried: Maximum tenor 15 years or residual service period
whichever is lower
For professionals and others: Maximum tenor 15 years subject to
liquidation of loan before attaining 60 years of age
Minimum & No minimum; Maximum i) For Govt Employees with checkoff-
Maximum Rs. 20 lacs, ii) Govt employees without checkoff, Corporates-
Loan Rs.15 lacs iii) Professionals & others: Rs.15 lacs
Security i) Third party Guarantee to the extent of loan
ii) Lien on PF
ii) Liquid collateral to the extent of 30-50% of loan amount
depending on customer profile
Special Borrower should submit copy of title deeds and other revenue
Feature records, copy of approved plans and approvals from the local
body, estimate of construction etc., besides execution of
Agreement to Mortgage.

Page 10 of 66
 EARNEST MONEY DEPOSIT (EMD) SCHEME
USP
 Short term loan up to 100% of the application money with a maximum
of Rs.10 lacs.
 One person can be financed only for one application at any point of
time.
 Successful allottee can avail Home Loan
Purpose To finance applicants for earnest money for booking of residential
plots/built-up houses being sold by Govt. housing agencies like
Urban Development Authorities like PUDA, HUDA and Housing
Boards.
Eligibility Individuals above 21 years of age with a steady source of income
Loan In case of unsuccessful applicants – on receipt of refund from the
Tenor Housing Board/Urban Development Authority.
In case of successful applicants – lump sum repayment of the loan
but not more than 12 months from the date of disbursement
Minimum & 100% of application money, subject to maximum of Rs.10 lacs.
Maximum
Loan
Moratorium Repayment of full amount at one go
Security Waived, subject to : (i) Allotment letters / refund orders should be
routed through SBI. (ii) Lump sum amount equal to 6 month’s
interest to be
taken upfront. (iii) 2 PDCs one for the principal amount of EMD and
another towards interest for the next 6 months should be taken to
meet the eventuality of refund getting delayed.
Special Interest is to be recovered upfront for the period till the refund /
Feature allotment is expected

Page 11 of 66
 SBI FLEXIPAY HOME LOAN
USP
 Salaried employees having age of 21 years and above but not more than
45 years with minimum 2 years of experience.
 Minimum loan amount Rs. 20.00 lacs.
 Loan amount 1.2 times the loan amount calculated as per the normal
method.
 Maximum age of borrower extended upto 75 years
Purpose As per Home Loan Scheme
Eligibility All salaried applicants with minimum 2 year experience;
Minimum Age: 21 years & Maximum Age: 45 years. In case of
multiple borrowers, all the borrowers whose income has been
considered for arriving at the loan eligibility should fall within the
stipulated age bracket.
Loan Tenor Minimum 25 years & Maximum 30 years
Minimum & Minimum Rs.20 lac ; No maximum
Maximum Loan
Moratorium For ready built house 36 months
For under construction property 36 months + residual construction
period maximum not to exceed 60 months
Security EM of property to be purchased
Special Feature Interest servicing mandatory during moratorium

PRADHAN MANTRI AWAS YOJANA

USP
 Credit linked subsidy scheme for urban housing
 Home Loan in affordable segment
 Upfront subsidy thereby reducing effective amount of repayment burden
 6.5% interest subsidy to ESW/LIG segment
 Scheme now extended to MIG segment as well
Purpose Credit Linked Subsidy is available for housing loans availed for
acquisition/construction of house and repair/extension of Kucha/Semi
Pucca house.
Eligibility  Economically Weaker Section: Annual Family Income Rs. 3 lac
 Lower Income Group: Annual Family Income Rs. 6 lac
 Middle income Group I: Annual Family Income Rs. 12 lac
 Middle income Group II: Annual Family Income Rs. 18 lac
Loan Tenor Maximum 30 years
Minimum & No minimum & no maximum but subsidy will be computed on the
Maximum below mentioned loan amount:
Loan EWS/LIG : 6 lac/ MIG-I- 9 lac/ MIG- II- 12 lac
Moratorium As per Home loan scheme; construction to be completed within 36
months
Security EM on property to be purchased
Special Subsidy claim to be done by REHBU CC
Feature

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 LOAN AGAINST PROPERTY
USP
 Secured personal loan to individuals who own residential house/flat and
select commercial property
 Liquidity to meet personal needs
 Competitive pricing
 No end use of fund to be ensured
Purpose Any personal purpose such as meeting expenditure on education,
marriage, healthcare, etc. other than speculative purpose. An
undertaking to this effect will be obtained from the customer in the
application itself and no documentary evidence for end use of the
fund will be insisted upon.
Loans under SBI LAP will not be permitted for Business Purposes
Eligibility Employees, Businessmen, Professionals and Self-employed
Individuals who are IT assesses, Non Resident Indians (NRIs) who
own residential property or commercial property in his/her own name
or in the name of spouse/ children/parent/sibling. Eligible
Loan Tenor Minimum 5 years ; Maximum 15 years subject to conditions
Minimum & Minimum Rs. 5 lac; Maximum Rs. 7.5 crore subject to location of
Maximum property
Loan
Moratorium No moratorium
Security EM on property
Special Minimum CIBIL score 700
Feature

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 SBI PRIVILEGE HOME LOAN & SBI SHAURYA HOME LOAN
USP
 An innovative Home Loan product tailor made to the requirements of
employees with pensionable service.
 Repayment upto the 75 years of age.
 Increase in permissible EMI/NMI Ratio
 Higher quantum of loan & lower EMIs post-retirement.
 Longer repayment for customers of above 40 years
Purpose As per Home loan Scheme
Eligibility SBI Privilege Home Loan: Employees of Central / State Governments
(including PSBs, PSUs of Central Government, and other individual(s)
with pensionable service.
SBI Shaurya Home Loan: Defense Personnel belonging to Army,
Navy and Air force.
Loan Tenor Minimum 5 years
Maximum 30 years subject to borrower liquidating the loan before 75
years of age
Minimum & Minimum Rs. 10 lac;
Maximum Maximum Rs. 50 crore
Loan
Moratorium Where age of the eldest salaried borrower is up to 55 years: Same as
Home Loan scheme.
Where age of the eldest salaried borrower is above 55 years: Upto 18
months.
Security EM on property
Special In case of borrowers with above 45 years of age; EMI/NMI freezes to
Feature 50%

Page 14 of 66
 HOME LOAN TO NON-SALARIED SEGMENT
USP
 Exclusive scheme for Non-salaried class to tap the potential available in
this segment
 Differential offerings in pricing based on Risk Grade
 Relaxation in EMI/NMI ratio
 Higher quantum of loan to very good customers (clear sanction zone)
Purpose Home Loans for the purpose of construction / acquisition of
residential house/flat, takeover of Home Loans from other
Banks/HFCs and repair/renovation of existing house/flat
Eligibility Professionals/ Self-Employed/ Businessmen who are over 18 years
of age with a minimum Risk Grade of 6 on a scale of 1 to 10 under
Bank’s Risk Scoring Model.
Loan Tenor Maximum 30 years or upto the age of 70 years of the eldest
applicant, whichever is earlier, including moratorium period.
Minimum & Minimum: Rs. 50,000/-
Maximum Maximum: Rs. 50 crores.
Loan
Moratorium As per Home Loan Scheme; Interest to be serviced during
moratorium
Security EM on property
Special Interiors upto Rs. 50 lac may be financed subject to 10% of project
Feature cost

Page 15 of 66
 INSTA HOME TOP UP LOAN
USP
 Hassel free Top up loan available online
 Fully automated product, no manual intervention
 Minimum loan Rs 1 lac , Maximum Rs 5 lacs
Purpose Any personal purpose other than speculative purpose.
Eligibility Existing Home Loan customers will be pre selected for offering
this product based on following eligibility: (a) Minimum Home
Loan Limit of Rs. 20 lacs with INB facility, (b) Minimum residual
tenure of Home Loan of 5 years, (c) Satisfactory track record of
3 years or more, (d) The customer should not have any live
Home Top-up Loan, (e) No instance of the Home Loan account
slipping to RG-3 or further in the past, (f) CIBIL Score of 700 or
higher, (g) Maintaining Saving Bank Account linked with CIF of
Home Loan. Based
Loan Tenor If the residual maturity of Home Loan is above 60 months but up
to 120 months: Tenor of Insta Top Up: 60 months
If the residual maturity of Home Loan is above 120 months :
Tenor of Insta Top Up: 120 months
Minimum & 5% of the Home Loan Limit, subject to Minimum of
Maximum Loan Rs. 1,00,000/- and Maximum of Rs. 5,00,000/-
Moratorium Nil; repayment to start one month after disbursement
Security An undertaking from the borrower will be obtained online,
authorizing the Bank to hold original Title Deeds of the house
property already mortgaged to the Bank for Home Loan, till the
liquidation of all loans including the proposed Insta Top-Up
Loan. However, extension of mortgage over the house property
will not be obtained.
Special Feature Fully system driven loan facility, no manual intervention required

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 SMART HOME TOP UP LOAN
USP
 Hassel free Top up loan available offline
 Minimum documentation and formalities
 Minimum loan Rs 1 lac , Maximum Rs 5 lacs
Purpose Any personal purpose other than speculative purpose.
Eligibility Existing Home Loan customers with: (a) Minimum Home
Loan Limit of Rs. 20 lacs (b) Minimum residual tenure of
Home Loan of 5 years, (c) Satisfactory track record of 3 years
or more, (d) The customer should not have any live Home
Top-up Loan, (e) No instance of the Home Loan account
slipping to RG-3 or further in the past, (f) CIBIL Score of 700
or higher, (g) Maintaining Saving Bank Account linked with
CIF of Home Loan. Based
Loan Tenor The maximum tenor of the loan will be the residual tenor of
underlying Home Loan or 20 years, whichever is lower.
Minimum & a) Home Loan borrowers with 12-60 months satisfactory
Maximum Loan repayment track record after completion of moratorium period
Minimum: Rs 1.00 lacs Maximum Rs 5.00 lacs subject to:
5% of the Home Loan Limit.
b) Home Loan borrowers with more than 60 months
satisfactory repayment track record after completion of
moratorium period: Minimum: Rs 1.00 lacs Maximum: Rs
5.00 lacs subject to 10% of the Home Loan Limit

Moratorium Nil; repayment to start one month after disbursement

Security Loan Agreement & Arrangement Letter authorizing the Bank
to hold original Title Deeds of the house property already
mortgaged to the Bank for Home Loan, till the liquidation of all
the loans including the "Smart Home Top-up Loan" will be
obtained. However, extension of mortgage will not be
obtained.
Special Feature At any point of time either `Smart Home Top-Up Loan’ or
“Insta Top-Up Loan will be permitted. Both cannot be granted
concurrently.

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 SBI BRIDGE HOME LOAN
USP
 Short term loan against existing residential property

mismatch
 Simultaneously avail home loan
Purpose Loan to meet shortfall in funds for purchase a new home/flat
Eligibility Individuals who are owners of an unencumbered house/flat and
who intend to sell the existing home/flat for meeting temporary
shortfall in cost for acquiring new home/flat,
Loan Tenor Maximum 2 years; The Bridge Home Loan needs to be repaid in
full by the borrower any time during the maximum loan tenure of 2
years, in one or more number of installments. No EMIs will be
stipulated for Bridge Loan by the Bank during the loan tenure of 2
years.
Minimum & Minimum Rs. 20 lacs, Maximum: Rs. 2 crores
Maximum Loan
Moratorium Loan to repaid at one go; interest servicing to be done monthly
Security Equitable mortgage of the SARFAESI compliant existing
residential property against which Home Bridge Loan is
sanctioned by the Bank
Special Feature  Simultaneous Home Loan may be sanctioned & disbursed for
acquiring New House
 Minimum CIBIL score 700

Some of the other Schemes that are also in use are

 Pre-approved Home Loan- Under this scheme, the customer is sanctioned with a
pre-approved limit subject to his eligibility as per the actual project. It enables the
customer to make his own assessment about the properties that he can afford to buy
and simultaneously he is assured of getting a home loan from our Bank.
 Reverse Mortgage Loan- SBI Reverse Mortgage Loan provides an additional source
of income for senior citizens of India, who have a self-acquired or self-occupied
home in India. This product is beneficial for senior citizens who do not have adequate

Page 18 of 66
 income to support themselves. The Bank makes payments to the borrower
/borrowers (in case of living spouse), against mortgage of his / their residential house
property. The borrower is not expected to service the loan during his lifetime.
 CRE Home Loans are for individuals who own two houses or more, and seeking
funding for owning their next home. The maximum number of houses/flats/residential
plots is restricted to one under CRE Home Loans. The maximum number of Home
Loans in the name of an individual, including the existing loans and the proposed one
is restricted to 3 (three) Home Loans (excluding closed accounts) under Home Loan
Scheme.
 SBI Suraksha- SBI offers life insurance linked to the housing loan. The premium of
RinN Raksha is funded by SBI and the repayment is spread over the entire tenor of
the loan in EMIs.
 SBI also offers bundled Home Loan Product SBI Exclusif for our wealth management
clients.
 SBI also offers schemes for flexible margin payment, pre-EMI interest payment
option by Builders, Credit Risk Guarantee Fund Trust for Low Income Housing in
Urban Areas (CRGFTLIH) etc
 SBI has an exhaustive scheme for Builder Tie-Up which enables customers to get
home loan very easily without going for title search & valuation. These projects are
thoroughly scrutinized and verified by SBI for their free title.

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 AUTO LOAN & VARIANTS

SBI Car Loan Scheme

Car Loans may be granted for purchase of new passenger cars, Multi Utility Vehicles
(MUVs) , Sports Utility Vehicles (SUVs) and also for of purchase of old/used certified pre-
owned cars.
Individuals (Salaried, Professionals, Self-Employed & Businessmen and Agriculturists)
between the age of 21-65 years and are eligible for SBI Car Loan Scheme. A maximum
of 2 individuals can jointly avail of the loan.
Net Annual Income (NAI) of Salaried Individuals should be at least Rs.2,50,000 and that
of others should be at least Rs.4,00,000 to be eligible for Car Loans. Income of Co-
borrowers can also be added.
Maximum Loan amount under the scheme is up to 48 times the Net Monthly Income
(NMI) of Salaried, up to 4 times the Net Annual Income of Businessmen/ self-Employed &
up to 3 times the NAI of Agriculturists subject to the EMI/NMI ratio of 50% (for NAI up to
Rs. 10.00 Lacs) and 60% (for NAI above Rs. 10.00 Lacs) and LTV of 85% of on-road
price of the vehicle.
There are certain concessions available in the Rate of Interest to Members of Parliament
(5 bps), Women Customers ( 5 bps) and for loans of Rs. 20.00 Lacs & above (up to
applicable MCLR) upon fulfilling certain conditions.
Penal Interest (@ 2.00% pa) is charged on late payment of EMIs for loans above
Rs.25000.
All Branches of incumbency Scale III and above and other branches approved by the
Bank are authorized to sanction Car Loans. Sanctioning powers may be suspended if
NPAs in car Loan exceed 1.50%
Sourcing of Car Loans can be done through Branches, Marketing Cells like MPST etc.,
Auto Loan Counsellors (ALCs) and other Agencies/ Intermediaries approved by the Bank.
Besides, Leads for Car Loans can also be generated through Online Customer
Acquisition Solution (OCAS).
Documents pertaining to applicants' KYC and Income (latest Form 16 or IT Return) are
required to be submitted along with the application form for availing of Car Loan from the
Bank. Agriculturists should provide necessary evidence relating to their land holding and
cropping pattern for assessment of their income. Most of the KYC documents can be
verified online through Govt. websites/ portals.
The normal Turn Around Time (TAT) for Car Loan sanction/ disbursement is 2 days.
Repayment of Car Loans can be done in a maximum period of 7 years.
Pre-payment Penalty will be levied @ 3% of the pre-payment amount plus GST, in case
prepayment within 3 years from the disbursement of loan. Fore Closure Charges:
Charges will be levied @ 3% of the closure amount plus GST, in case fore close within 3
years from the date of disbursement of loan.
Standard Car Loans can be transferred from one Branch to another at the request of the
borrower.
A Key Fact Statement, generated through LOS, is given to the customers after sanction
of the loan to make the customer familiar with broad terms and conditions of the loan.

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NRI Car Loan Scheme
A Car Loan product for NRIs having features and terms & conditions of the regular car
loan scheme.
NRIs aged 21-65 years will be the borrowers along with a close resident relative, who
will be the Guarantor to the Loan.

NRI customers of other Banks are also eligible for the loan provided they have an NRI
deposit account with a minimum/fixed balance of Rs.50,000 for the last 2 years with
other Bank and are willing to open a deposit account with SBI.

Resident Indian, who is the guarantor to the loan, should be a close relative (as
defined in Section 6 of the Companies Act 1956) of the NRI borrower.
NRIs having a minimum NMI of US$ 1000 or equivalent in other currencies or
minimum NAI of US$ 12000 or equivalent in other currencies are eligible for the loan.
There is no such stipulation for the Guarantor .
Maximum Loan amount is 18 times of NMI or 1.5 times of NAI of the borrower with no
upper limit.
Loan should be repaid in 7 years before the borrower attains the age of 65 years.

SBI Loyalty Car Loan Scheme

Car Loan scheme for existing Home Loan borrowers having a repayment record of at
least 1 year.
Home Loan borrowers who have maintained a minimum margin of 15% and have taken
possession of the House and created Equitable Mortgage are eligible for this loan.
Maximum Loan amount will be 75% of the present market value of the house property
less outstanding in the Home Loan account and Top up Loan account, if any.
All other terms and conditions regarding eligible category of customers, repayment,
insurance, penal interest, mode of disbursement, CIC verification, Risk
Scoring Model application, Inspection, and Documents to be obtained etc, will be
as applicable under respective Car Loan Schemes. However, Minimum Net
Annual Income of the borrower will be Rs 2.00 Lacs.

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Assured Car Loan Scheme
Existing customers, aged 18 and above, with unencumbered Fixed Deposits with us
are eligible for this loan.
No stipulation of minimum income and CIBIL scores.
Minimum loan of Rs. 2.00 Lacs with no upper ceiling.
100% of FD amount eligible for purchase of a Car. No loan against third party Fixed
Deposits.
Easy repayment period of 3-7 years.
Rate of Interest as applicable to regular Car Loans.
Beneficial for customers who don't have any income proof and want to avail of tax
benefits (interest on Car Loans) in their businesses.

Certified Pre-owned Car Loans

Car Loans for purchase of Certified Pre-owned Cars from dealers like Maruti True
value, Honda Advantage, Mahindra First Choice etc.
Cars to be purchased should not be more than 8 years old.
Net Annual Income (NAI) of Salaried Individuals should be at least Rs.2,50,000, for
Self employed and Professionals should be Rs 3,00,000/- and that of others should be
at least Rs.4,00,000 to be eligible for Car Loans. Income of Co-borrowers can also be
added.
Only branches mapped to a Certified Pre-owned Car dealers can do these loans.
Minimum loan amount is Rs. 3.00 lacs and maximum is Rs. 10.00 lac with a margin of
20%.
Takeover of loans is not permitted.
At any point of time not more than 8 copies of RC book with bank’s charge and
Insurance policy with banks hypothecation clause can be pending with a dealer.

SBI Two Wheeler Loan Scheme

Existing customers, Salaried/ Professionals/ Businessmen etc., are eligible for this
loan.
Customers should have a minimum NMI of Rs.12,500 and NAI of Rs.1,50,000.
Minimum loan amount will be Rs.30,000 and Maximum less than Rs.3,00,000 subject
to EMI/NMI ratio of 50% and a margin of 25% on the on-road price of the vehicle.

Page 22 of 66
High Value Super Bike Loan
Individuals of 21-65 years are eligible for the loan.Minimum Annual Income –(i) Rs
2,50,000/- for salaried individuals (ii) Rs 4,00,000/- for Self Employed, Professionals
and Agriculturists
Minimum loan amount is Rs. 2.50 Lacs with no upper ceiling subject to EMI/NMI ratio
of up to 60%.
Margin required to be brought in is 15% of the ex showroom cost of the vehicle.
Loans under this scheme can be repaid in 5 years.
Takeover of loans and financing of used vehicles is not permitted under the scheme.
All other terms and conditions will be as per the Car Loan scheme.

SBI Car Loan Lite

Car Loan scheme for "No Income Proof" category of customers.
Net Annual Income of Rs.2,50,000 is to be declared by the customers.
Maximum Loan amount is Rs.4,00,000 with financing of 75% of the on-road price of the
Car.
Customers of other Bank must fulfill certain conditions regarding possession of House,
Bank Account Statements and CIBIL scores to become eligible for the loan.
Loan is repayable in a maximum period of 5 years.
Rate of Interest is prescribed on the basis of the Customer's CIBIL Scores.
Margin amount should be brought in by the customer. No advance receipts from the
dealers to be accepted.

Page 23 of 66
 EDUCATION LOAN SCHEMES

SBI Student Loan Scheme

The Scheme seeks to extend financial assistance to deserving/meritorious students for
pursuing higher education in India and abroad.
Courses recognized by the Central/ State Govt. agencies like UGC, AICTE etc. are
considered eligible for finance.
Course under distance learning mode are not eligible.
Indian nationals having secured admission to a higher education course, through entrance
test or otherwise, in recognised Institutions in India or Abroad are eligible for the loan.
Expenses eligible for finance include Course Fee to the Institute, Hostel charges,
Examination Fee, Travel Expenses for a Study Tour, Purchase of Books, Equipments,
Computers, Two Wheeler etc.
Premium of 'RiNn Raksha' Insurance policy, to cover the student during the currency of the
loan can also be financed.
For studies in India other than Medical Course, a maximum loan of Rs.10.00 Lacs can be
given whereas for studies in India for Medical Course, maximum loan amount of Rs 30.00
lacs can be given. For studies abroad, the maximum permissible amount is Rs.20.00 Lacs.
Top up loans for completing higher studies after completion of the first course can also be
given within the overall limit and eligibility of the student.
For studies in India, no Margin is required for loans up to Rs.4.00 Lacs. For loans above
Rs.4.00 Lacs, 5% Margin is required for studies in India and 15% Margin is required for
studies abroad. Scholarship/assistantship can be included in the margin.
For loans up to Rs.7.50 Lacs, only Co-obligation of parents is required without any Security
while Tangible Collateral Security is required for loans above Rs.7.50 lacs.
There is a concession of 0.50% in interest rates for girl students.
All Education Loan applications to be routed through Vidya Lakshmi Portal (VLP) for smooth
tracking and monitoring of loan applications.
The loan is to be repaid in EMIs in 15 years after a moratorium of course period plus 1 year
or 6 months after getting a job, whichever is earlier. Moratorium period can be extended to 24
months on a case to case basis.
Students and Co-borrowers should have a minimum CIBIL Score of -1 or >600 for secured
and -1 or >650 for unsecured Education Loans.
No processing fee is charged for loans for studies in India. For loans of above Rs. 4.00 lacs
and upto Rs. 20.00 Lacs for studies abroad, students will be required to make a
deposit of
Rs.5000/- which will be adjusted against their Margin or Interest payable by them in future. If
they don't avail the loan, amount will be appropriated and credited to commission account.
For all student loans above Rs 20.00 lacs for studies in India, a processing fee of Rs
10,000/- plus GST to be charged.
Communication of Sanction/ Rejection is to be conveyed to the applicants within 15 days of
receipt of all the required documents. No Education Loan application should be rejected
without the concurrence of the next higher authority.

Page 24 of 66
 All Metro, Urban and Semi Urban branches are authorised to sanction Education loans.
GM (Network) can also authorise Rural branches on a case to case basis.
Loan to wards of staff are sanctioned on the same terms and conditions as prescribed for
the public.
Takeover of Education Loans is permitted subject to fulfillment of certain conditions.
KYC details of the students to be recorded properly to track them in future. PAN card has
been made mandatory for the students.

SBI Scholar Loan Scheme

Loans to deserving/meritorious students for pursuing full time courses in India at selected
premier and reputed institutions identified by the Bank.
Student should be an Indian National and must have secured admission to full time
professional/ technical courses through Entrance Test/Selection process in any of the
selected Premier Institutes.
Eligible expenses include Fee payable to college/school/ hostel, Examination/ Library/
Laboratory fees, Purchase of books/ equipments/ instruments/ uniforms, Caution deposit/
building fund/ refundable, Travel expenses/ expenses on exchange programme, Purchase
of computer/ laptop etc.
Loans up to Rs.40.00 Lacs are available without any collateral security for select Colleges/
Courses.
Colleges/ Universities have been subdivided into four categories viz. List AA. List A, List B
and List C.
SBI Scholar Loans are to be sanctioned for regular full time Degree/ Diploma Courses and not
certificate/ part time courses, through entrance test/ selection process.
The current list of approved Institutions is available on our website www.sbi.co.in under
Personal Banking > Personal Finance > Scholar Loans.
Margin of 4% is required to be brought in for loans above Rs.4.00 Lacs and up to
Rs.7.5 lacs.
No processing fee is charged from the students.
The loan is sanctioned jointly in the name of the student and his parent/ guardian. In case of
married person, co-obligator can either be spouse or parent/ parent-in-law. Parental co-
obligation can also be substituted by a suitable third party guarantee.
In addition to existing designated campus branches, all MMGS-III and above
incumbency branches will also sanction the Scholar Loans as per the convenience of
student/parent.
Moratorium period of course duration and 1 year is available to students.
Maximum repayment period of 15 years. Repayment starts 1 year after the completion of the
course.
After the completion of the studies and if the student desires, the loan account can be
transferred to a branch closer to the place of co-borrower.
All other terms and conditions are similar to Student Loan scheme of the Bank.

Page 25 of 66
SBI Global Ed-vantage Scheme
Loans to deserving/meritorious students for pursuing full time regular courses in foreign
colleges/ universities.
Regular Courses in any discipline offered by foreign Institutes/Universities in USA, UK,
Canada, Australia, Europe, Singapore, Japan, Hong Kong and New Zealand are covered.
Loan amount ranges from Rs.20.00 Lacs to Rs.1.50 crores.
Processing Fee of Rs.10,000/- per application.
0.50% concession in Interest Rates for students availing of RiNn Raksha policy from SBI Life.
10%, to be brought in at the time of each disbursement.
Tangible Collateral Security to the extent of 100% of the Loan Limit for liquid Securities and
110% for security in form of land/ building.
Moratorium of 6 months after completion of course is available to the students.
Loans to be repaid in EMIs in a maximum period of 15 years after moratorium.
All BPR branches are authorized to source loan application under the scheme. Loans
will be sanctioned by RACPCs at BPR Centres. MMGS-III and above branches at Non-
BPR centres are also eligible to source and sanction these loans.
Sanction letter can be issued to the students by Branch/ CPC prior to submission of Visa/
Form i-20, if demanded by the foreign Institution/ University/ VISA issuing authorities; if
otherwise the proposal is in order in all respect and sanctioning authority is satisfied fully.

SBI Skill Loan Scheme

SBI Skill Loan Scheme aims at providing a loan facility to individuals who intend to take up skill
development courses as per the Skilling Loan Eligibility Criteria.
Courses run by Industrial Training Institutes (ITIs), Polytechnics, training partners
affiliated to National Skill Development Corporation (NSDC)/ Sector Skill Councils etc. are
eligible to be financed.
Minimum Loan Amount: Rs. 5000 , Maximum Loan Amount: Rs. 1,50,000
No Margin is required for any amount of loan.
No processing fee is charged from the borrowers.
No collateral or third party guarantee will be taken. However, the Parent/ Guardian will execute
loan documents along with the student, as joint borrower (co-borrower).
In case of Government Institutes, all Branches, except Rural Branches, are eligible for
doing Skill Loans. In case of Private Institutes, PBBU at the concerned LHO will identify a
nearby Branch which can verify changes in fee structure on an ongoing basis. Loans in respect
of such Institutions will be routed through the mapped Branch.
Moratorium period of up to 12 months is available in the scheme.
Repayment can be done in a maximum of 7 years for loans above Rs.1.00 Lac.

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Vidya Lakshmi Portal (VLP)
“Vidya Lakshmi Electronic Platform” was launched for students to apply for education
loans and to facilitate tracking and follow-up of the loan during its life cycle. Vidya Lakshmi
Electronic Platform was launched by Hon’ble Prime Minister on 15th August 2015. This will
minimise the need for personal interaction between the students and the disbursing
agencies and provide transparent processing of student loan.
Operating Units have to deal with the leads promptly and process the same in LOS with OCAS
ID. The nodal officer of LHO has to monitor the position and ensure this aspect on daily basis
in OCAS.

Credit Guarantee Fund Scheme For Education Loans (CGFSL)

Government of India through Ministry of Human Resource Development (MoHRD),
Department of Higher Education has notified the Credit Guarantee Fund Scheme for
Education Loans (CGFSEL). Under this guarantee scheme, education loans upto Rs. 7.5 Lacs
will be covered.
The maximum loan limit under this scheme is Rs 7.5 lakh without any collateral security and
third party guarantee. However, the Fund reserves the right to revise the loan limit as and
when required.
For availing the guarantee coverage, the Member Lending Institution shall pay Annual
Guarantee Fee (AGF) of 0.50% p.a. of the outstanding amount as on the date of application of
guarantee cover, upfront to the Fund within 30 days from the date of Credit Guarantee
Demand Advice Note (CGDAN) of guarantee fee.

Page 27 of 66
 SBI PERSONAL GOLD LOAN SCHEME

Purpose
A general purpose scheme against collateral security of gold ornaments & specially minted
gold coins sold by Banks to individuals.
Eligibility
Individuals who are 21 years of age with steady income including Bank’s employees and
pensioners. Submission of proof of income by borrower, not necessary. Proper introduction
of the borrower and minimum capacity to service the interest will be sufficient to determine
eligibility
Loan Amount
Minimum: Rs.20,000/- irrespective of centre. Loan amount to be linked to the need / value
of the gold less usual margin, with a cap of Rs.20.00 lacs.
Margin and Security valuation
For Public : 25% For staff: 25%, reduction in margin is permissible.
Processing Fee
0.50% of the Loan amount + applicable Tax or Rs 500 + applicable Tax whichever is
higher.
Gold Appraiser Charges
0.05% to 0.10% of Loan Amount, Min. Rs.50.00, Max. Rs.600.00
Procedure for Accepting Gold Ornaments
Genuineness and purity of gold ornaments to be assessed by using the following
methods:
a)Touch stone Method b) Nitric Acid Test c) Specific gravity test
Documentation
 D P Note and D P Note Take Delivery Letter
 Application for Gold Loans
 Two copies of photograph of the borrower(s)
 Gold Ornaments Take Delivery Letter
 Witness Letter in case of illiterate borrowers
 Arrangement Letter,
 Opinion Reports need not be compiled for loans upto Rs.3.00 lacs
Repayment:
Maximum: 36 months. The repayment of Principal and Interest should commence from
the month following the month of disbursement

OD AGAINST GOLD – LIQUID GOLD SCHEME

Overdraft with a provision of Cheque Book (facility Current Account Cheque Book)
INB customers having transaction rights availing gold loan under Liquid Gold Loan Scheme
should be advised that they can transact in the account through their INB platform.

Page 28 of 66
 GOLD LOAN-BULLET REPAYMENT :The most sought after variant of P-segment Gold
loan where repayment of loan is permitted by way of bullet repayment at the end of the
term i.e., there is no requirement to service the interest or instalment during the loan term.
Maximum repayment period is 12 months.

UNSECURED LOANS

CHARACTERISTICS OF UNSECURED LOANS

 Unsecured personal loans are general purpose loans that are sanctioned to individual
customers to meet their personal expenses.
 These loans are not sanctioned for speculative purposes
 Bank does not verify the end use rather obtains an undertaking from customers about
the specific purpose for which the money has been borrowed
 The loans are sanctioned to those customers who main accounts with us and have a
regular flow of credit in those accounts. For example salary, rension, rent etc get
credited in the accounts.
 Loans are unsecured ab-initio.

XPRESS CREDIT SCHEME

Xpress Credit Scheme is sanctioned for any legitimate personal purpose (e.g., expenses
for domestic or foreign travel, medical treatment of self or a family member, meeting any
financial liability such as marriage of son/daughter, defraying educational expenses of
wards, meeting margins for purchase of assets etc.)
Target Permanent Employees of Central and State Government, Quasi
Group & / Government, Central PSUs, Profit making State PSUs, Educational
Purpose Institution of National Repute, Reputed Private Schools and Colleges,
Select Corporates including those who do not have business
relationship with bank (subject to fulfillment of certain conditions). Loans
under the scheme are sanctioned for any legitimate personal purpose.
Eligibility Permanent employees having Salary account with us .
The minimum Net Monthly Income (NMI) of the employee should be Rs
5,000/-.
Quantum of Term Loan: Minimum: Rs.25, 000/-Maximum: 24 times NMI subject to
Finance maximum of Rs 15.00 lacs.
Overdraft Minimum: Rs.5.00 lacs
Loan Maximum: 24 times NMI subject to maximum Rs. 15 lacs
(In case of Govt. aided schools 12 months Gross Salary both
under Term Loan and Overdraft facility)
EMI/NMI not > 50% for Max ceiling of Rs.15 lacs
Repayment Maximum 72 months or residual service period whichever is less
subject to EMI/NMI ≤ 50%.
Special Term Loan and Overdraft with Reducing DP
Features Provision for 2nd Loan which can be sanctioned after 1 year of
disbursement of the 1st loan, if satisfactorily conducted, subject to the
overall EMI/NMI ratio of 50%

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XPRESS CREDIT SCHEME
SBI INSTA CREDIT: TOP UP LOAN ON INB PLATFORM

Feature Detail
Purpose Any personal purpose other than speculative purpose
Eligibility Existing Xpress Credit Loan Borrowers who fulfill the following
conditions will be offered “SBI Insta Credit Top Up Loan”:
Minimum existing Xpress Credit Loan Limit of Rs 1 lac
Minimum residual maturity of Xpress Credit Loan - 1 year
Satisfactory repayment record of at least 1 year
The customer should not have an existing Top up Loan
No instance of the Xpress Credit Loan slipping to RG-3 and beyond in
last 1 year. Repayment of Loan will be only through SI.
Validity of Only for pre-selected customers on our INB Platform which will be
Offer valid for a period of 1 month from the date of activation of the offer.

Loan Amount 20% of Xpress Credit Limit (Existing Loan Limit)

Minimum: Rs 20,000 Maximum: Rs 3,00,000
Nature of Overdraft (with Reducing DP)
Facility
Loan tenure Residual Maturity Loan Tenure
12 mts - 35 mts 1 year (12 mts)
36 mts - 48 mts 3 years (36 mts)
Repayment The overdraft will be repayable by way of EMIs commencing
Period after one month from the month of disbursement. The
maximum repayment period will be 3 years by automatic setting up of
Standing Instructions.

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 “XPRESS POWER”

Parameters Description/Criteria
1. Eligible Employer i. Central and State Government
ii. Quasi Government
iii. Central PSUs
iv. Profit making State PSUs
v. Educational Institutions of National Repute
(Institutions covered under SBI Scholar Loan
Scheme)
vi. Select Rated Corporates (ECR of BBB- & above)
b. Eligible Employee Permanent employee with one year confirmed service
Gross Monthly
c. Minimum Rs 50,000/-
Income
d. Loan Amount 24 times NMI Minimum: Overdraft: Rs 5 lacs Term
Loan: Rs 25,000 Maximum : Rs 15 lacs
e. Repayment Period Maximum 60 months or residual service period
whichever is less

f. Loan type Term Loan/Overdraft

g. Processing Fees 1.00 % + applicable tax of the loan amount

Minimum CIBIL score of 700 with satisfactory CIBIL report
h. CIBIL Score
with no default

XPRESS ELITE
Parameters Details
Eligible All employees working with Central / State Governments /
Criteria Defence establishments, Quasi Government Bodies, PSUs.
(There is no compulsory requirement of him/ her maintaining
salary account with the Bank)
Purpose For any legitimate personal purpose
Minimum The minimum Gross Monthly Income (GMI) - Rs.1,00,000.
Income
Type of Loan Overdraft (Reducing DP) [with cheque book facility]/ Term Loan
Loan Amount 24 Months Net Monthly Income of the employee.
Minimum Loan Amount : Rs. 3,00,000
Maximum Loan amount: Rs. 20,00,000
subject to EMI/NMI not exceeding 60%
Repayment Maximum 72 months or residual service period whichever is less
Period

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 XPRESS CREDIT - IT EMPLOYEES

Parameters Details
Eligible EMPLOYERS
Criteria All Employers in IT/ ITeS industry and member of NASSCOM
EMPLOYEES
Employees with a minimum of 6 months length of service & should
have salary accounts with SBI
Purpose For any legitimate personal purpose (e.g., expenses for domestic or
foreign travel, medical treatment of self or a family member, meeting
margins for purchase of assets etc.)

Minimum Net The minimum NMI of the employee should be Rs. 25,000/-
Monthly
An Undertaking from the borrower that there is no other deduction
Income
from his/her salary which is not reflected in his salary slip.
Type of Loan Term Loan/ Dropline Overdraft
Loan Amount 18 Months Net Monthly Income of the employee.
Minimum Loan Amount : Rs. 50,000/- Maximum Loan amount:
Rs.10.00 lacs, subject to EMI/NMI not exceeding 50%

Repayment Maximum 36 months

Period

Other Information: No loans under the new scheme are to be sanctioned to the
employees of organizations/ institutions/ entities with high level of delinquencies i.e.,
more than 1.50% in the existing Xpress Credit Loans.

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 SBI PENSION LOAN

Eligibility (A) Pensioners:

i) All Central, State Government pensioners and SBI Pensioners
whose pension accounts are maintained by our branches.
ii) Pensioners whose pensions are disbursed by Govt. Treasuries
(B) Family pensioner, i.e. spouse authorised to receive pension
after the death of the pensioner
Age and For Pensioner and Family Pensioner
Repayment Age at the time of sanction Repayment Age at the
Period Period time of full
Repayment
Up to 72 yrs 60 months 77 years
More than 72 yrs & up to 74 yrss 48 months 78 years
More than 74 yrs & up to 76 yrs 24 months 78 years
Loan Amount Minimum Rs.25,000/-Maximum as follows:
EMI/NMP not to exceed 33%.

For Pensioner and Family Pensioner

Age at the time of sanction For Family
Pensioner Pensioner
Up to 72 yrs 14 lacs 5 lacs
More than 72 yrs & up to 74 yrss 12 lacs 4.5 lacs
More than 74 yrs & up to 76 yrs 7.5 lacs 2.5 lacs
Margin Nil
Security A. Primary Security: NIL
B. Collateral Security -Third Party Guarantee
Facility Demand Loan
Processing Fee 0.5% of loan amount + Applicable Tax Min :Rs. 250/- per application.
This will not be applicable for SBI Pensioners.
Disbursement By credit to the running deposit account (SB/ CA)
Repayment In EMIs commencing from the pension payable one month after
disbursal of loan..

TOP- UP Loan
Top-up loan (2nd loan) can be sanctioned to Pensioner and Family pensioner after 1
year of disbursement of the 1st loan provided the 1st loan has been satisfactorily
conducted and is regular at the time of sanction of 2nd Loan. There cannot be more
than 2 Pension Loans standing in the name of a borrower. However this is subject to
the overall EMI/NMP ratio of 50% for Pensioner and 33% for the Family Pensioner.
The sum total of outstanding in the 1st loan and limit of 2nd loan in no case should
exceed the pensioner’s entitlement at the time of availment of 2nd loan.

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 JAI JAWAN PENSION LOAN

The scope of scheme to cover all the Defence Pensioners in a single scheme
(irrespective of the early or usual retirement of the Defence personnel)

Eligibility Pensioners of Armed Forces, including Army, Navy and

Air Force, Paramilitary Forces, Coast Guards, Rashtriya Rifles,
CRPF, BSF, ITBP, etc. who are below 50 years of age.
Facility Term loan only
For Minimum Rs.25,000/=
Pensioners A. Maximum of 36 months’ pension with a ceiling of Rs.14.00 lacs
for pensioners who are up to 56 Yearsof age.
B. Age
56 - 72 yrs : Rs. 14.00 lacs
72 - 74 yrs : Rs. 12.00 lacs
74 – 76 yrs : Rs. 7.50 lacs
EMI / NMP : Not to exceed 50%
Repayment Age at time Repayment
of sanction
Upto 56 yrs 84 months
56 - 72 yrs 60 months
72 - 74 yrs 48 months
74 – 76 yrs 24 months

PENSION LOAN TO COAL MINES PROVIDENT FUND (CMPF) PENSIONERS

Parameters Description
Name of the SBI Pension Loan to CMPF Pensioners
Scheme
Eligibility All CMPF Pensioners (Except Family and Children Pensioner)
whose pension accounts are maintained with the SBI.
Loan Amount Minimum Rs.25,000/-
Maximum: 18 months’ Net Monthly Pension (NMP) but not
exceeding Rs.3.00 lacs, subject to EMI/NMP not exceeding
50%.
Age Maximum Age at the time of Sanction of Loan : 65 Years
Security A. Primary : NIL
B. Collateral: Third Party Guarantee of a person good for the
loan amount who has been maintaining a satisfactorily
conducted account with the Bank; preferably
spouse/son/ daughter of the pensioners.
Authorised All Branches where the Pension accounts are maintained.
Branches
Documents As applicable to SBI Pension Loan
Repayment As applicable to SBI Pension Loan Branch will deduct the
installment by set-up of SI between Pension payment A/c and
Pension loan A/c.

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 OVERDRAFT FACIITY IN SALARY PACKAGES
The Corporate Salary Package was introduced in 2006. Subsequently depending
upon the target group, the Bank has customised special Salary Packages for
employees of Defence, Para Military, Railways, Central Government, State
Governments as well as Police, select Corporates, etc. to have a focused approach

Overdraft feature:
a. Overdraft facility in the Salary Package (Savings) account
b. He should be a permanent employee of the Corporate/ Organisation.
c. Have minimal residual service of 6 months
d. The salary account should be KYC compliant. The nature of OD will be “Clean
OD”, without any collateral.
e. Overdraft will be limited to 2 month’s Net Salary
f.Overdraft limit restricted to maximum limit under Silver, Gold, Diamond and
Platinum variant as follows:

Variant Maximum Limit

Silver Rs.40,000/-
Gold Rs.75,000/-
Diamond Rs.1,50,000/-
Platinum Rs.2,00,000/-

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 OTHER DEMAND LOANS

Loan against NSCs/KVPs

To meet expenses of personal nature for Customers having satisfactorily run account
with no minimum and maximum loan amount. 40% of face value plus accrued interest
of NSC VIII issue/KVPs is retained as Margin. Pledge on NSC/KVP. Third party loans
against NSCs/KVPs may be considered on merits of each case

Loan against Life Insurance Policy

To meet expenses of personal nature. All branches can grant loans to the customers
maintaining satisfactorily conducted accounts, against the security of the life
insurance policies issued by (a) Life Insurance Corporation of India (b) Department of
Post Offices (c) SBI Life Insurance Company Ltd., Loan Amount: No minimum; no
maximum. Margin: 5% of the Surrender Value of the policy

Loan Against Bank’s Time Deposits

To meet expenses of personal nature, Loans may be granted against Term Deposits
(including NRE/NRO /FCNB deposits) ii) Special Term Deposits (including
NRE/NRO/FCNB deposits) iii) Recurring Deposits (Accounts with balance of Rs.100/-
& above only eligible including NRE/NRO Deposits) (No loan will be granted against
RFC deposits). Margin: 10% on TDR(Principal) & STDR (Principal + accrued Interest).
Sanction of loans against third party deposit(s) not permitted.

Online Overdraft against TDR/STDR

For customers having Internet Banking and Fixed Deposit Accounts (e-STDR/TDR) in
single name only. The facility of online OD is not available against NRE/NRO/ FCNR(B)
Fixed deposits, MODs & Tax Savings Fixed Deposits. Minimum loan amount is
Rs.25,000/- and maximum Rs.5.00 Crore. The Limit of overdraft against STDR/eSTDR
will be by default 90% of the face value of STDR/eSTDR by default i.e., customers will
have no choice to fix the lower limit. The Limit of overdraft against TDR/eTDR will be by
default 75% of the face value of TDR/eTDR by default i.e., customers will have no
choice to fix the lower limit. The Loan Tenor will be minimum 6 months & maximum 12
months. The Loan will be repayable by way of EMIs. Standing Instruction (SI) for EMI
payment will be automatically set up on Savings Bank Account of the customer. Interest
Rate will be 1.00% above the Interest payable on the Fixed Deposit.

Other than that, Bank has launched many other demand/personal loans as follows:
 E-commerce loan
 Pre-approved personal Loan
 Demand Loan against debt securities/DAF etc
 Demand loan against SBI MF Securities
 Online loan against shares
 Loan against Sovereign Gold Bonds, RBI bonds etc

Page 36 of 66
CROSS SELLING

Banks and Financial institutions that offer more than one product or service can
promote to customers different products and services they deliver based on need and
behavior of customer and demography. This type of cross selling can be a highly
effective tool for growing business, acquiring new bank clients and enhance customer
life time value by encouraging multiple product holdings by Individual customer. When
you cross-sell, you offer the customer a product or service related to whatever they are
already buying. It can be as simple as promoting a credit card and internet banking to a
savings or current account customer, or offering Insurance products or Mutual Fund
products.

Surveys show that most customers appreciate being told about additional products or
services that might better meet their needs or about new services that were not offered
in the past which creates value in the present, and shows that the bank is in a way
demonstrating that you are aware of their needs and care about their satisfaction and
overall experience.

The key to successful cross-selling is to focus your efforts on meeting the customer’s
needs, rather than simply pushing more products and services. This is one area of
startup marketing where you may need to do a little experimentation to find just the right
balance, use of right business intelligence and customer relationship management
tools.

Cross selling has to be a key component of sales techniques. Further staff should be
sales oriented and speak to clients with a right attitude and should posses’ adequate
knowledge on products, services, communication skills and be motivated to convert
customers to advocates.

Benefits of Cross- selling for Banks

1. Enhances customer experience with the organisation

2. Enables acquisition of new bank customers and retention of existing customers.
3. Enables clients to form opinions and introduce new clients to the bank.
4. Improves your customer base and help meet goals and objectives.
5. Encourages clients to use multiple products and services and thus prevent
switching over to competitor banks.
6. Assist in developing new products and value propositions through constant
engagement.
7. Enjoy customer life time value (customer longevity), reduce acquiring cost.

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CHECK YOUR PROGRESS

1. What is the maximum loan amount which can be sanctioned for Diamond
variant of Corporate Salary Package?
a. Rs 1,00,000/-
b. Rs 75,000/-
c. Rs 1.50,000/-
d. Rs 2,00,000/-

2. What is the maximum repayment period allowed under Xpress Elite?

a. 48 months
b. 72 months
c. 84 months
d. 60 months

3. What is the maximum loan amount which can be sanctioned under Xpress
Power ?
a. Rs 10.00 lacs
b. Rs 15.00 lacs
c. Rs 7.50 lacs
d. Rs 20.00 lacs

4. Employees of loss making State Public Sector units which are in the nature of
essential State services can be offered which of these personal loans?
a. Xpress Bandhan
b. Xpress Power
c. Xpress credit to IT Employees
d. Risk Mitigated Product – Xpress Credit

5. What is the name of Auto Loan variant which is aimed at small businessmen
and self-employed where no income document is required?
a. Loyalty Car Loan
b. Car Loan Lite
c. NRI Car Loan
d. Certified Pre-Owned Car Loan Scheme

6. Flexi-pay Home loan is for salaried customers in the age group of:
a. 30-40 yrs
b. 35-45 yrs
c. 21-45 yrs
d. 25-45 yrs

7. If a Home loan customer is 55 years old and works in a private firm, what is the
maximum repayment period that can be sanctioned to him?
a. 5 yrs
b. 10 yrs
c. 15 yrs
d. 20 yrs



Page 38 of 66
 Chapter-13: Marketing Of Liability/ Digital Products
SAVINGS BANK ACCOUNTS

INTRODUCTION-
Savings Bank Deposit is a form of demand deposit which is subject to the restrictions
as to the number of withdrawals as also the amounts of withdrawals permitted by the
bank during any specified period.

WHO CAN OPEN SB ACCOUNT?

Any person fulfilling account opening requirements may, upon agreeing to comply with
the prescribed rules, as mentioned hereunder, open a Savings Bank Account, provided
he/ she furnishes proof of identity and proof of address as required by the Bank. A
Savings Bank Account may be opened by:

a) A single person in his or her name or two persons in their joint names, payable to:
i) Either or Survivor
ii) Former or Survivor
iii) Latter or Survivor
iv) Both or Survivor
v) Both jointly

b) By more than two persons in their joint names payable to:

i) All of them or the survivors or the last survivor.
ii) Any one or more of them or survivors or the last survivor.
iii) A particular person during his/her lifetime or survivors.

KYC (KNOW YOUR CUSTOMER)

The applicant will need to furnish proof of identity and proof of address. RBI guidelines
permit only “Officially Valid Documents” viz:
a) Passport
b) PAN Card
c) Voter Identity Card
d) Driving License
e) NREGA Card, and
f) Aadhar Letter/Card

With effect from 1st June 2017, the instructions for opening of account are as under:
a) In case of an individual, who is eligible to be enrolled for an Aadhar number, he shall
submit the Aadhar number issued by UIDAI and PAN or Form 60 at the time of
opening an account based relationship w.e.f. 01.06.2017.

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b) All new accounts are required to be opened with Aadhaar and Permanent Account
Number (PAN) or Form 60 as KYC document.

c) However, where Aadhaar number has not been assigned to an applicant, the
applicant shall furnish proof of application of Enrolment for Aadhaar and in case PAN
is not submitted, one certified copy of an Officially Valid Document (OVD) along with
Form 60 is required.

d) In case the applicant is not a resident or is a resident in the states of Jammu and
Kashmir, Assam or Meghalaya and does not submit the PAN, he shall submit one
certified copy of OVD containing details of his identity and address and one recent
photograph.

e) The extant instructions regarding opening of small account will continue.

For Low-risk accounts, identity cards with applicant’s photograph issued by

Central/State Govt. Departments/Statutory/Regulatory authorities/Public Sector
Undertakings to their employees are also deemed to be “Officially Valid” documents
for the purpose of KYC compliance. Letter issued by a Gazette Officer with a duly
attested photograph of the person can also be accepted for opening of Low Risk
accounts.

PERIODICAL UPDATION OF KYC:

Time intervals for periodic updation of KYC for existing low/medium and high risk
customers have been changed to 10/8/2 years, respectively.

Fresh proofs of identity and address at the time of periodic updation, need not be
insisted from those customers who are categorized as ‘low risk’ in case of no change in
status with respect to their identities and addresses. A self-certification by the customer
to that effect should suffice in such cases.

In case of change of address of such ‘low risk’ customers, they could merely forward a
certified copy of the document (proof of address) by mail/post, etc. Banks may not insist
on physical presence of such low risk customer at the time of periodic updation.
A copy of the marriage certificate issued by the State Government or Gazette
notification indicating change in name together with a certified copy of the ‘officially valid
document’ in the existing name of the person shall be obtained for proof of address and
identity, while establishing an account based relationship or while undertaking periodic
updation exercise in cases of persons who change their names on account of marriage
or otherwise.

Page 40 of 66
Maintaining Minimum Balance in Accounts:

With effect from 01.10.2017, the Monthly Average Balance to be maintained in SB

accounts are revised as under :

Area Monthly Average

Balance
Metro & Urban Rs 3,000/-
Semi Urban Rs 2,000/-
Rural Rs 1,000/-

Ceiling on Number of Withdrawals:

The maximum number of free debit entries per month in SB Account except BSBD and
BSBDA-SMALL accounts, depend on the Monthly Average Balance maintained in the
account and this is decided by the Bank from time to time.

Nomination Facility:

The nomination facility is available on Savings Bank Accounts and the account holders
are advised to avail of this facility for smooth settlement of claim by legal heirs in
unforeseen circumstances. Nomination can be made in favour of only one nominee.

Payment of interest:

Interest will be calculated on a daily product basis and credited to the account at
quarterly intervals. Interest will be paid only if works out to Re 1/- or more. Thereafter,
fifty paise and more will be rounded off to the next higher rupee and anything less will
be ignored. It is paid in the month of June, September, December and March every
year.

Variants under Savings bank Account

1. SAVINGS PLUS ACCOUNT:

Salient features of Savings Plus accounts are as under:

i. Savings Plus Account is a Savings Bank Account linked to MODS, wherein surplus
fund above a threshold limit from the Savings Bank Account is transferred
automatically to Term Deposits opened in multiples of Rs. 1000/-.

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ii. Any surplus funds in the account exceeding the threshold limit, for a minimum
amount of Rs 25000/-and in multiples of Rs 1000/- in any one instance, are
transferred as Term deposit which earns interest applicable to term deposits.

iii. The tenure of MOD component is between 1 year to 5 years, in round months

iv. The minimum sweep amount is Rs 10,000/-.

v. Uniform minimum balance requirement of Rs 3,000/- for SB Plus accounts
irrespective of location of the branches where the accounts are maintained.
Whenever there is shortfall in the balance, system will break the MOD to the extent
required to maintain minimum level and credit the proceeds to the SB Plus account.
If sufficient balance in MOD is not available, on account of which the system is
unable to maintain the minimum balance of Rs 3,000/- in the account, the customer
is liable to pay charges on non-maintenance of AMB as applicable to the
geographical location where the account is maintained.

2. Basic Savings Bank Deposit Account (BSBDA)

For Financial Inclusion and access to Banking Services for a vast section of population,
RBI advised banks to offer a ‘Basic Savings Bank Deposit Account’, which will offer
certain minimum common facilities to all their customers without levying any charge.

i) Salient Features of Basic Savings Bank Deposit Account:

I. The Account will be KYC compliant

II. The product will not have any requirement of minimum balance.

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

IV. No cheque book will be issued.

V. Only Basic RuPay Card will be issued.

VI. Maximum 4 withdrawals including withdrawals at own ATMs and other Bank’s
ATMs and other modes including RTGS, NEFT, Clearing, Branch cash
withdrawal, Transfer, Internet debits, SI, EMI etc

ii) The services available will include deposit and withdrawal of cash at branches as
well as ATMs; receipt/credit of money through electronic payment channels or by
means of deposit/collection of cheques drawn by Central/State Government agencies
and Departments.

iii) No charges will be levied on any of the above facilities including activation of
inoperative Basic Savings Bank Deposit Account. Holders of Basic Savings Bank
Deposit Account will not be eligible for opening any other Savings Bank Deposit
account in the bank.

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 iv) Existing Saving Bank Account can be converted to BSBD account. Whenever
customer submits request for conversion of regular Saving Bank Account to BSBD
account, the account should not be closed only the product code needs to be changed
in CBS.

3. BSBDA-Small Accounts: BSBDA-Small Deposit accounts are the same as Basic

Savings Bank Deposit Account (BSBDA), but are opened when the customer does not
provide any Official Valid Document for full KYC. An individual who desires to open a
BSBDA-Small Account may be allowed to open such an account on production of a
self-attested photograph and affixation of signature or thumb print, as the case may be,
on the form for opening the account, in the presence of an official of the Bank.

Special Features:

i. the aggregate of all credits in a financial year does not exceed rupees one lakh.
ii. the aggregate of all withdrawals and transfers in a month does not exceed rupees
ten thousand.
iii. the balance at any point of time does not exceed rupees fifty thousand.
iv. The accounts are initially valid for 12 months only. Further transactions will be
permitted only if, the customer submits KYC documents or proof of having applied
for KYC documents. If the customer submits proof of having applied for KYC
documents, the account will be allowed to continue for a period of 24 months from
the date of opening of account. If the customer submits KYC documents, the
account should be converted to BSBD/ Regular SB account at the discretion of the
customer. No transactions should be permitted after 24 months of opening the
account if the customer fails to submit KYC documents. In such cases, the account
should be closed.
v. Maximum balance in the account should not exceed rupees fifty thousand at any
point of time. Total debits by way of cash withdrawals and transfers will not exceed
rupees ten thousand in a month. Total credits in such accounts should not exceed
rupees one lakh in a year.
vi. Foreign remittances are not allowed into such accounts.
vii. If at any time the balance exceeds Rs 50,000/- or the total credit summations during
the year exceeds Rs 1,00,000/-, further transactions should not be allowed. Such
accounts should either be converted to BSBD or Regular SB accounts on
submission of KYC documents.

Page 43 of 66
4. Minor’ s Account New Products : Pehla Kadam and Pehli Udaan

Brief features of the two products are given in the table below:

Features Pehla Kadam Pehli Udaan

Eligibility Minor of any age Minors above the age of 10 years
and who can sign uniformly
Maximum Rs. 10 lac in the Account
Balance
Mode of Jointly with the Parent or Guardian Singly operated
Operation as the primary account holder
With Enquiry rights and limited With Enquiry rights and limited
Internet Banking transactions like - Bill payment, transactions like - Bill payment,
Opening e-TDR/e- STDR/e-RD, Opening e- TDR/e-STDR/e-RD,
Inter-Bank funds transfer (NEFT Inter- Bank funds transfer (NEFT
only),and Issue Demand only), and Issue Demand Draft.
Draft.Per day transaction limit of Per day transaction limit of Rs.
Rs. 5,000/- 5,000/-
KYC Date of Birth proof of the Minor + Date of Birth proof +KYC
Requirements KYC of the Parent. Liberalised for document of minor. Liberalised for
Low-Risk category. Low-Risk category.
Cheque book Personalised cheque book Personalised cheque book
Photo ATM- Child’s photo embossed ATM- Photo embossed ATM-cum-Debit
cum-Debit Card cum-Debit Card with with withdrawal/POS limit of Rs.
withdrawal/POS limit of Rs.5,000/. 5,000/- will be issued in the name of
Card will be issued in the name the minor.
of the minor and Guardian.
Mobile Banking With viewing rights and limited With viewing rights and limited
transaction right like: Bill payment, transaction right like- Bill
Top ups. Per day transaction limit payment, Top ups, IMPS. Per
of Rs.2,000/- day transaction limit of Rs. 2,000/-
Auto sweep facility with a minimum threshold of Rs. 20,000.
Sweep in multiple of Rs 1,000 with a minimum of Rs. 10,000
Value Added Feature (optional)
PAIAuto sweep Personal Accident Insurance Cover (offered by SBI General) for the Parent
for Parent
Child Plan (in case of Pehla Kadam account only).Smart Scholar - Child Plan offered
by SBI Life with inbuilt premium waiver benefit and loyalty additions to fulfil
the child’s dreams.

Page 44 of 66
CURRENT ACCOUNTS

1. Introduction:
“Current Account” (CA) means a form of demand deposit, wherefrom withdrawals are
allowed any number of times, depending upon the available balance in the account or
up to a particular agreed amount.
 No interest is allowed on current account balances.

 A Current Account can be opened only with the authority of the Branch Manager /
Divisional Manager or any official designated for this purpose.

 It should be made known to the prospective customer that the Bank levies a
quarterly / yearly charge, depending upon the type of account, for non-maintenance
of the stipulated minimum balances.

 Since introduction is not necessary for opening of current accounts under

prevention of Money Laundering Act and Rules 2002 (PML Act) as well as RBI’s
extant KYC instructions, branches should not insist on introduction for opening
current accounts of customers.

 The facility of Nomination is available for current accounts opened in the name of
Individuals & Proprietary concerns.

 While opening a current account, the branch should obtain an undertaking from
the applicant to the effect that they are not enjoying any credit facility with any other
Bank. In the event of the customer availing credit facilities from other banks, the
following process to be followed:
a) Branches should obtain NOC from the Bank with whom the customer is
supposedly enjoying credit facilities as per his declaration.

b) Branches must also seek ‘No Objection Certificate’ from the drawee bank where
the initial deposit to the newly opened current account is made by way of a
cheque.

2. Who can open Current Account:

The following entities can open current accounts:
i. Individuals
ii. Proprietorship firms
iii. Partnership firms
iv. Joint Hindu Family
v. Private & Public Limited Companies
vi. Trust
vii. Clubs / Associations / Societies of other fiduciary nature

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 viii. Liquidators, Executors and Administrators
ix. Banks

3. Accounts in the names of Minors:

 No current account should be opened in the name of, or on behalf of a minor,
without a reference to the controlling authority, unless a guardian of the property
(not merely of the person) of the minor has been appointed under the Guardians
and Wards Act.

 The guardian must not be allowed to draw on the account after the minor has come
of age or after his death.

 A minor attains majority at the age of 21 when, (a) he is of foreign domicile, (b) a
guardian of his property or person has been appointed by the Court, or (c) his
property is under the superintendence of a Court of Wards. In other cases,
minority ceases at the age of 18.

 In no case, should a minor be allowed an overdraft. An overdraft to a guardian may

only be allowed under the authority of the controlling office and, ordinarily with the
sanction of the Court.

4. TYPES OF CURRENT ACCOUNTS

I. Regular Current Account (MAB Rs 10,000/-)
II. Gold Current Account (MAB Rs 1,00,000/-)
III. Diamond Current Account (MAB Rs 5,00,000/-)
IV. Platinum Current Account (Rs 10,00,000/-)
V. Surabhi Current Account
VI. Power Jyoti and Power Jyoti Pre- Upload (PUL)

TERM DEPOSIT
Term Deposit scheme is a facility to deposit surplus funds for a certain fixed period and
earn higher rate of interest. Deposits are accepted for periods from 07 days to 120
months. There is no limit for Maximum amount, however minimum deposit should not
be less than Rs 1000/-

Interest is accrued/paid in the account at the rate prevailing on the date of opening of
account for the said maturity. Interest is applied at quarterly intervals for compounding
in case of Special Term Deposits.

Additional interest is paid to Senior Citizens and Staff members and Staff Pensioners.

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Customers can opt for the following periodicity options of paying interest-
a) Quarterly
b) Monthly
c) At the end of each Calendar Quarter
d) At Maturity.

An account opening form is required to be filled by the customer(s) along with pay-in–
slip. Cash or Cheques are received for funding of the Term Deposits.

If PAN is not available in the CIF, for amount of more than Rs 50,000/- Form 60 is to be
obtained. Similarly, if aggregate amount (for amounts below Rs 50,000/-) of the
customer in a financial year is more than Rs 5 lakhs, Form 60 is required from the
customer if PAN is not quoted.

Recording of “Maturity Mandate” at the time of opening of deposits, for the disposal of
proceeds on maturity has been made mandatory.

Maturity Mandate can be changed by the customers any time during the period of the
deposit. An SMS advising maturity date and obtaining mandate for disposal of deposits
is also sent, if mobile number is recorded in the account.

In the absence of a demand for payment or instruction to the contrary on or before the
date of maturity, the deposit will be renewed/continued to be renewed for the similar
period(s) at the then prevailing rate of interest.

SBI CAPGAINS PLUS

Our Bank is among the few banks authorized by the Income Tax Department to accept
deposits under Capital Gains Accounts Scheme 1988 (CGAS) representing capital
gains or sale proceeds of long term capital assets. (Only public sector banks can offer
this deposit scheme).

This special account, named ‘SBI CapGains Plus’, can be opened as a Savings Bank
account (Account A) or a Fixed Deposit account (Account B) (TDR or STDR) after
opening Savings Bank account.

CAPITAL GAIN SCHEME 1988

Sections 54, 54B, 54D, 54F, 54G and 54GB of the Income-tax Act, 1961, provide for
exemption of capital gains tax for a seller if the seller / assessee utilize the amount of
capital gain or net consideration for specified purposes.

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In the event of the assessee not utilising the amount for the specified purposes, before
the date of furnishing the return, then the Act provides for the assessee to deposit such
sum in specified banks and defer utilisation of the sum as laid down under the Act but
within clearly defined timelines.

TYPES OF ACCOUNTS:
There shall be two types of deposit accounts, namely:
(i) Savings Bank Account (Deposit Account-A); and
(ii) Term Deposits (TDR / STDR) (Deposit Account B)

The deposit made under account-A shall be in the form of savings deposit and subject
to the other provisions of this Scheme, withdrawals under this account can be made
from time to time by the depositor.

The deposit made under account-B shall be in the form of term deposit with an option to
the depositor to keep the deposit as cumulative or non-cumulative deposit. Withdrawals
under this account can be allowed in the manner stipulated under the scheme.

Eligible a) Resident Individuals, Body of individuals

Applicants b) Non-individuals like Hindu Undivided Family (HUF), Sole
Proprietorship firms; Partnership firms, Companies,
Association of persons etc
c) Non-resident Indians (NRIs)
d) Resident but not Ordinary Resident (RNOR)
e) Artificial Judicial persons who have capital gains, taxable in
India.
Minimum Rs. 1,000 in case of Cap Gains Term Deposits
Amount
Period of Deposit Not exceeding 2 to 3 years from the date of transfer of original
asset as given below-
Max 24 months - if capital gains is U/s 54B,
54 F. (As declared in Form A by depositor)
Max 36 months - if capital gains is U/s 54, 54 D,
54 G & 54GB (As declared in Form A by depositor)
Interest Rate As applicable to normal Savings and Term Deposits for
respective maturities - Irrespective of ticket size (i.e, no
differentiation between regular & bulk deposits).
Senior Citizens Senior citizens aged 60 years and above, will NOT be eligible
for additional interest as permitted for domestic term deposits
of similar maturity.
In other words, deposits received from senior citizens under
the scheme will also carry the same rate as applicable to

Page 48 of 66
 general public.
No differential The benefit of varying / differential rates of interest on single
Rate of term deposits of Rs. 15 lakh and above, permitted in terms of
Interest for bulk para 2.26 (c), of the Master Circular on Master Circular on
deposits Interest Rates on Rupee Deposits held in Domestic, Ordinary
Non-Resident (NRO) and Non-Resident (External) (NRE)
Accounts dated 02.07.2012 issued by RBI, are not applicable
to deposits of similar size / maturity under the Capital Gains
Account Scheme. 1988.
In other words, banks cannot offer higher/ differential rate of
interest on deposits received under the Capital Gains
Accounts Scheme, 1988.
Interest on Staff Payment of higher rate of interest on deposits from members
Accounts of the Bank’s staff / pensioners, as applicable to other deposit
schemes, is NOT permitted under this Scheme.
Authorized The Scheme is operative at all branches except rural
Branches branches.
Closure / Closure of Savings bank Account (Account – A)
Premature and closure of TDR/STDR (Account – B) allowed before
Payment maturity. (Proceeds to be credited to CapGains SB account-
Account- A only).
At the time of final closure of all accounts the depositor will
have to produce specific authority letter/ certificate from the
Income Tax Officer having jurisdiction and the closure would
be allowed on the terms mentioned in the letter of authority.
Loan facility No loan facility against this deposit is available.
This term deposit can neither be accepted as margin money
for non-fund based nor as collateral to any type of fund-based
/ non-fund based facilities
Charge or The amount standing to the credit of any depositor in any
alienation account shall not be placed or offered by him as security for
any loan or guarantee and shall not be charged or alienated in
any manner whatsoever
Provision of The procedure of provision of interest on TDR / STDR / SB
Interest under Capital Gains deposit will be same as that applicable to
Term Deposits / SB Accounts.
Nomination Upto 3 Nominees
Tax Deducted at TDS shall be deducted as per the existing rules in this regard.
Source The procedure for this will be same as that for TDRs / STDRs
opening under this scheme. Forms 15G & 15H can be
accepted, wherever submitted by depositor, and TDS waived
accordingly

Page 49 of 66
SBI FLEXI DEPOSIT
a) Tenure: Minimum: 5 year –Maximum: 7 years
b) Minimum deposit amount : Rs.5,000/- per Financial year (plus in multiples of
Rs.500/-) minimum of Rs.500/- at any one instance. Deposits can be made anytime
during a month and any number of times. Maximum Rs. 50,000/- in a Financial year.
c) Penalty for default in payment of minimum deposit will be Rs.50/- per financial year.
d) Interest as applicable to Term Deposits
e) Premature closure as applicable to Term Deposits
f) Interest payable will be subject to TDS
g) Nomination facility available

Recurring Deposit Scheme

a) Tenure: Minimum: 1 year –Maximum: 10 years
b) Minimum Installment of Rs.100/-
c) Interest as applicable to Term Deposits
d) Premature closure as applicable to Term Deposits
e) Interest payable will be subject to TDS
f) Nomination facility available
g) Where the depositors fail to pay an installment for a calendar month, no
reminders will be sent by the Bank.
h) The penalty charged on delayed payment of installment:
i) A service charge will be levied on Recurring Deposit accounts paid out on or after
the date of maturity, wherein there is default in payment of three or more
consecutive installments and the account has not been regularized. A service
charge of Rs.10/- will be levied on such accounts at the time of payment at or
after maturity.
ii) RD Account of period 5 years and less → Penalty shall be Rs.1.50 for every
Rs.100 per month.
iii) RD Account of period more than 5 years→ Penalty shall be Rs.2.00 for every
Rs.100 per month.
iv) Penalty when applied, shall not exceed the interest paid to the depositor.
v) In case six consecutive installments are not received, the account should
prematurely be closed and balance paid to the account holder.

Page 50 of 66
 SBI Tax Savings Scheme, 2006

Name of the product SBI Tax Savings Scheme, 2006

Segment Personal
Eligibility Resident Indians for himself/ herself as an individual or in the
capacity of the Karta of the Hindu undivided family, having
Income Tax Permanent Account Number (PAN).
The joint account shall be issued jointly to two adults or to an
adult and a minor.
Type of Account Term Deposit (TD) account / Special Term Deposit (STD)
account.
Period of deposit Minimum – 5 Years
Maximum - 10 Years
Available at All branches (except specialized credit intensive
branches) all over India.
Minimum deposit Rs. 1,000/- and in multiples of Rs. 100/- thereafter.
amount
Maximum deposit Not exceeding Rs. 1,50,000/- in a year
amount
Rate of interest As applicable to Term Deposits
The interest rate payable to SBI Staff and SBI pensioners will
be 1.00% above the applicable rate.

The rate applicable to all Senior Citizens of age 60 years and

above will be 0.50% above the applicable rate.

Payment of interest As applicable to Term Deposit/ Special Term Deposit

Tax deduction at TDS is applicable at prevalent rate.

source Form 15G/H can be submitted by the depositor to get
exemption from Tax deduction as Income Tax Rules.
Other feature i) No term deposit shall be encashed before the expiry of lock
in period of five years from the date of its receipt. After
completion of 5 years, premature closure will be allowed as
per terms and conditions applicable to Term Deposit.

ii) Loan not available during the lock in period of five years.
After five years as per the extant instruction of Term Deposit
(TD)/ Special Term Deposit (STD)

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 Annuity Deposit Scheme

To enable the depositor to pay one-time lump sum amount and to receive the same in
Equated Monthly Instalments (EMIs), comprising a part of the principal amount as well
as interest on the reducing principal amount, compounded at quarterly rests and
discounted to the monthly value.
Name of the Annuity Deposit Scheme
product
Purpose To enable the customer to deposit one time lump sum amount
and re-payment of the same in monthly annuity instalment
comprising part of the principal amount plus interest.
Eligibility Resident individuals, including minors
Mode of Holding Singly or jointly
Period of deposit 36/60/84 or 120 months
Available at All branches (except specialized credit intensive
branches) all over India.
Minimum deposit Based on minimum monthly annuity Rs 1000/- for the relevant
amount period. In no case Minimum Amount of deposit should be below
Rs. 25,000/-
Maximum deposit No Limit
amount
Rate of interest As applicable to Term Deposits
The interest rate payable to SBI Staff and SBI pensioners will be
1.00% above the applicable rate.
The rate applicable to all Senior Citizens of age 60 years and
above will be 0.50% above the applicable rate.
Payment of annuity On the anniversary date of the month following the month of
deposit.
If that date is non-existent (29th, 30th & 31st), it will be paid on
the 1st day of the next month.
Annuity payment, net of TDS, will be credited to linked SB/CA
account.
Premature closure Permitted in case of death of depositor. Premature payment is
also allowed for deposits up to Rs. 15.00 lakhs.
Pre- mature penalty is chargeable as applicable to Term Deposit.
Nomination Available
Loan facility Overdraft/loan up to 75% of the balance amount of annuity may
be granted on special cases. After disbursal of OD/loan, further
annuity payment will be deposited in loan account only.

Passbook Universal Passbook is issued.

Transferability Allowed
among
our branches

Page 52 of 66
 NRI DEPOSITS

Who is an NRI/OCI/PIO?
Definition of a Non-resident Indian (NRI): As per FEMA
In terms of Regulation 2 of FEMA Notification No.13 dated May 3, 2000, Non-Resident
Indian (NRI) means a person resident outside India who is a citizen of India.
When a person resident in India leaves India for a country (other than Nepal or Bhutan)
for taking up employment, or
for carrying on business or vocation outside India or
for any other purpose indicating his intention to stay outside India for an uncertain
period
his / her residential status should be changed to NRI.

Overseas Citizen of India (OCI)/ Person of Indian Origin (PIO):

‘Person of Indian Origin (PIO)’ means a foreign citizen not being a citizen of
Bangladesh, Pakistan or other countries as may be specified by the Central
Government from time to time if:
He/she at any time held an Indian passport
Or
He/she or either of their parents / grand parents / great grand parents was born and
permanently resident in India as defined in Government of India Act, 1935 and other
territories that became part of India thereafter provided neither was at any time a citizen
of any of the aforesaid countries (as referred above)
Or
He/she is a spouse of a citizen of Indian or a PIO

Overseas Citizen of India (OCI) means any foreign national who was eligible to become
citizen of India on 26th January 1950 or was a citizen of India on or at anytime after
26th January 1950 or belong to a territory that became part of India after 15th August
1947 is eligible for registration as OCI. Minor children of such person are also eligible
for OCI. However, if the applicant has ever been a citizen of Pakistan of Bangladesh,
he/she will not be eligible for OCI.
Explanation: PIO will include an ‘Overseas Citizen of India’ cardholder within the
meaning of Section 7(A) of the Citizenship Act, 1955.

Page 53 of 66
A. Various NRI Deposit Accounts at a glance:

ACCOUNTS NRE NRO FCNR (B) RFC

Purpose of To park overseas To park current Indian To park overseas To park funds for
account earnings remitted earnings and overseas earnings remitted to returning Indians
to India earnings remitted to India (for permanent
India settlement)
Currency Rupees Rupees USD, GBP,EURO, USD, GBP, EURO
CAD,
JPY, AUD
Types of Savings, Current, Savings, Current, Fixed Deposits Fixed Deposits
account Fixed Deposits Fixed Deposits (TDR/STDR) (TDR/ STDR)
(TDR/ STDR) and (TDR/ STDR) and RD
RD

Investment Min: 1 Year Max: Min: 7 Days Max: 10 Min: 1 Year Max: 5 Min: 1 Year
Term 10 Years Years Years Max: 3
Years
•
Initial funding Savings, Current: Nil • USD1000 • USD 1000
for opening• RD: Rs. 100 TDR, STDR: Rs. 1000 GBP1000 • GBP 1000
• EURO 1000 • EURO 1000
• CAD1000
• JPY 1000
• AUD1000

FCNR (B)Premium
Account :
• USD25000
Minimum • Savings, Current: Product and Area
Balance Wise
Savings Monthly
Accounts Average
Balance (MAB):
Metro & Rs. 3000/-
Urban
Semi- Rs. 2000/-
Urban
Rural Rs. 1000/-

Current Rs. 10000/-

Account
(All Centre)
• RD: Rs. 100

Page 54 of 66
 TDR, STDR:
o For Personal Banking Branches in:
Savings Minimum Total
Accounts Customer
Account/Deposi
t
Balance
Metro/Urban Rs. 1 Lakh
Semi-Urban/ Rs. 50,000/-
Rural
Current Rs. 10000/-
Account
(All Centre)
oFor all other Branches: Rs. 1000
Repatriability Freely Repatriable Current income up to Freely Repatriable Freely Repatriable
of Principal USD 1 million per
financial year
(Conditional)
Repatriability Freely Repatriable Freely Repatriable Freely Repatriable Freely Repatriable
of Interest subject to deduction of
tax

B. Eligibility for Account Opening:

Account Type Resident NRO A/Cs NRE A/Cs FCNR(B) A/C
Accounts
NRI Not-permitted1 Permitted2,7 Permitted2 Permitted2
PIO Not-permitted1 Permitted2,3,7 Permitted2,3 Permitted2,3
OCI Permitted in Permitted2,3,7 Permitted2,3 Permitted2,3
certain cases1.1
Foreign Nationals Permitted3,4 Not-permitted4 Not-permitted Not-permitted
on employment in
India

Page 55 of 66
 1 However a joint account with Resident Indian (RI) who is a close relative can be
opened subject to following conditions:
• Mode of operation permitted is 'Either or Survivor'
• The RI will be the primary/first account holder in the joint account and NRI (PIO /
OCI) will be the second applicant
 + An OCI holder, who has come to India with an intention to stay in India or staying
in India for an indefinite period, is permitted to open all types of accounts allowed
to a Resident customer, even in his own name.
2 A joint account with Resident Indian (RI) who is a close relative can also be
opened subject to following conditions:
 Mode of operation permitted is 'Former (NRI) or Survivor' only
 The NRI (PIO / OCI) will be the primary/first account holder in the joint account and
RI will be the second applicant

3 Following conditions applicable:

 Pakistani National will require a prior approval from RBI before opening the
account.
 Bangladesh National to have a valid visa and residential permit issued by
Foreigner Registration Office (FRO) / Foreigner Regional Registration Office
(FRRO) concerned.
4 Foreign nationals who come to India on employment and on leaving the India can
convert their Domestic account to NRO account, to enable them to receive their legitimate
dues subject to certain conditions. But, continuation of account beyond 6 months will
require RBI’s approval.
5 NRO account be opened for Foreign Students studying in India on the basis of his/her
passport (with appropriate visa & immigration endorsement).
6 If the account has been maintained beyond six months, repatriation of funds toabroad
is permitted only with the specific approval of RBI.
7 NRIs (including PIO / OCI) residing in Nepal or Bhutan are not permitted to open NRO
account. However, they are permitted to open/maintain NRE/FCNR accounts

Page 56 of 66
Marketing of Digital Products

What is marketing?
Marketing is the process by which a firm profitably translates customer needs into
revenue. Meeting customer needs and delivering superior customer value are the core
of Marketing. In services industry like banking, satisfying the customer is all the more
important given the unique features of services like intangibility, heterogeneity,
inseparability etc.

Digital India & Digitization in Banking

India is going digital at an unprecedented pace where almost everything is available at
just a click - be it banking, shopping, ticketing in fact everything that money can buy. In
recent years new age Banks and Fintech companies have caused major disruption in
Banking and Financial Services industry. New age FinTech companies are targeting
young and digitally savvy customers. They are providing unique experience and ease of
operation which are attracting more and more of today’s customers.

SBI’s Digital Initiative

In this competitive environment, SBI has also grown its technology and channel
platforms keeping itself, ahead of the curve. It has been the strategy of the Bank to
evolve a digital business model with an eye on the future. Today SBI boasts of a wide
array of digital products to meet every requirement of its customers- be it providing
payment solution on mobile or an omni channel experience to its customers for a
seamless digital journey.

Benefits of Digital Financial Products for Customers:

Customers derive the following benefits:
 A better customer experience
 Ease of operation
 Speedy solution
 Convenience of banking anywhere and anytime
 Simplified transactions
 Secrecy of transactions, even without intervention of bank staff
 Innovative products and services offered by banks
 No trips to branches or queues leading to reduction in expenses and time saving

Benefits of Digital Financial Products for the Bank:

 Customer delight through innovative products and services
 Better customer focus by harnessing technology that predicts customer demands
and preferences
 More customer loyalty by offering personalized offers and services at the
convenience of customers
 More business by offering customer specific products

Page 57 of 66
  Better profitability by reducing dependence on physical branch network
 Meeting regulatory requirements through transparency and disclosures
 Facing the challenges being caused by innovative fintech solutions
 Achieving businesses targets and reach in a highly cost effective manner
 360 degree view of customers by collating data from banks records, social media
and other public domain.
 Acquiring new customers, especially young to ensure future business prospectus
 Operational efficiency by maintaining accurate data and reliable management
Information System

Promoting digital products therefore is a win- win situation for both our customers as
well as our Bank.

CHECK YOUR PROGRESS

1. Periodicity of KYC updation in accounts opened for High Risk Customers is once in
a. 2 years
b. 3 years
c. 5 years
d. 8 years

2. What is the monthly average balance (MAB) to be maintained in SB Accounts in

Metro and Urban area?
a. Rs 1,000/-
b. Rs 2,000/-
c. Rs 3,000/-
d. Rs 5,000/-

3. Interest in SB accounts will be calculated on daily product basis and credited to the
account at
a. monthly intervals
b. bi-monthly intervals
c. quarterly intervals
d. half yearly intervals

4. Which of these is not a Current Account variant?

a. Gold Current Account
b. Diamond Current Account
c. Platinum Current Account
d. Silver Current Account

5. Maximum period for Term Deposit account is

a. 100 months
b. 120 months
c. 84 months
d. 60 months



Page 58 of 66
 Chapter-14 :Importance of Government Business and
Marketing od Govt. Business Products

Importance and market share of Government Business and Marketing of

Government Business Products

Government Business means conducting various financial activities on behalf of RBI. It

includes receipt and payment on behalf of Government, maintaining and servicing
various schemes floated by Government of India. Conducting Government Business
has a direct relationship with the growth of country as it reflects the amount and
direction of government spending as well as the revenue collected.

We are traditionally the preferred Banker to majority of the Central as well as State
Government Ministries and the relevant departments. It is one of the most lucrative
business and contributes significantly to our Bank’s other income. Government
Business is a transaction-based business giving pure income without any capital outlay
or negative impact on profit on account of provisioning.

In the era when interest spreads are shrinking and due to very high level of competition
the possibility of increasing the spread is remote, Bank has to focus on avenues which
generate other income and Government Business is one such key source of fee based
income, it assists the Bank in maintaining high level of CASA deposit and also enables
the bank to price its asset products competitively.

Government is the largest Corporate client of the Bank with turnover of Rs. 55.61 Lakh
Cr (FY 2017-18). Unlike other business, government business gives us pure income
without any capital cost. Besides income, the contacts with the Government authorities
help the Bank in getting many business leads crucial for expanding our business in
other verticals.

SBI acts as Agent of RBI:

The Reserve Bank of India acts as the banker to the Central Government in terms of
Sections 20 and 21 of the RBI Act, 1934, and as banker to the State Governments in
terms of Section 21A of the Act. As a sequel to the departmentalization of accounts in
1976, Reserve Bank of India in consultation with the Ministry of Finance authorized all
the Nationalized Public Sector Banks to handle Government business of the Central
Civil Ministries as their agents on commission basis to cope up with the heavy rush of
transactions of Government business.

Section 45 of the RBI Act, 1934, provides for appointment of banks as agents at all
places or at any place in India, for purposes that it may specify, “having regard to public

Page 59 of 66
interest, convenience of banking, banking development and such other factors which in
its opinion are relevant in this regard”.

In terms of the provisions contained in Government of India Notification

F.No.13/3/2000- BOA dated April 17, 2000, four new private sector banks, viz. IDBI
Bank Ltd, HDFC Bank Ltd., ICICI Bank Ltd., UTI Bank Ltd. (now Axis Bank Ltd.) have
also been authorized to transact limited government business. With this addition, there
are at present 35 agency banks including J & K Bank Ltd, which conduct limited agency
business in the state of Jammu & Kashmir.

SBI acts as an agent of RBI in carrying out Government Business in Central

Government Ministries/ Department. SBI has traditionally been the preferred and
accredited Banker to major Central Government Ministries/ Departments. Commanding
the market in Government Business, SBI has a share of more than 80% in Government
Commission. SBI is at the forefront in developing e-Solutions for both Central and State
Government undertakings. This has facilitated transition of Government Business to the
online mode, resulting in greater efficiency and transparency.

SBI is an active stakeholder in the Government’s latest initiatives such as the

Government e-Marketplace and is continuously engaged in developing customized
technology solutions such as e-Tendering, e-BG and e-Trade to keep pace with the
Government’s digital initiatives. Total Turn Over and Commission earned by SBI during
last two years is as under:-

FY 2017 FY 2018
Turnover 4977798 5561295
Commission 2905 3409

Government Business incentive at a Glance for our Bank

SBI’s Fee income Commission on Government

Business (%)
March 17 Rs. 21389 crs Rs. 2905 crs [13.58]
March 18 Rs. 23636 crs Rs. 3409 crs [14.42%]
Dec 18 Rs 15206 crs Rs 2406 crs [15.82%]

Importance of Government Business

• Facilitates cross-selling of P Segment Products and other products
• No Capital Adequacy requirement
• No risk of bad accounts/NPAs
• Govt. is the largest customer of the Bank
• Largest commission earner
• SBI Commands Market Share > 58% (65%)

Page 60 of 66
Agency Commission Rates w.e.f 01-07-2012 (The Earning Potential)

Type of transaction Rate of commission

Receipts-e mode Rs. 12 per transaction
Receipts- Physical mode Rs. 50 per Transaction
Pension payment Rs. 65 per transactions
Payments- Other than pension 5.5 Paisa per Rs. 100
Commutation & Gratuity 5.5 Paisa per Rs. 100
Sharing of Commission 75% to DBs : 25% to FPB
Ref: RBI Master circular no. DGBA.GBD.No.2/31.12.010/2018-19 dated 02.07.2018.

Regulatory framework
The conduct of Government business is governed by the Civil Accounts Manual and
instructions issued by the Offices of Controller General of Accounts, Comptroller &
Auditor General and Finance Departments of States, Banking Department (PAD),
Treasury Rules of State Governments and periodical circulars issued by RBI.

As each Ministry / Department has been allotted a special agency bank/s for handling
its transactions, the Reserve Bank does not handle the government’s day-to-day
transactions, except where the Bank itself has been nominated as the banker to a
particular Ministry / Department. The transactions taking place at the branches of
agency banks are consolidated at their head offices or “link offices” and reported to the
designated offices of Reserve Bank of India daily for settlement by booking in the
Ministries/Departments accounts and ultimate adjustment every month-end in the
government account at Central Accounts Section (CAS), Nagpur which maintains the
accounts of the individual Ministries / Departments.

Authorization Process:
The accreditation for conducting the business as agent of Reserve Bank is given by the
respective Ministries through the office of Controller General of Accounts and Reserve
Bank of India in consultation with the Ministry of Finance.

Some Important Govt. business/Products-

Direct Taxes:-
SBI accepts all types of Direct taxes which includes
• Payment of Income tax & Corporation Tax
• Tax Deducted at Source/Tax Collected at Source(Income tax and Corporation tax)
• Payment of Security Transaction Tax, Hotel Receipt Tax, Estate Duty, Interest Tax,
Wealth Tax, Expenditure Tax / Other direct taxes & Gift tax
• Payment of TDS on sale of property

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 • Commodity Transaction tax Direct Taxes can be paid in Cash, through a Cheque or
online through Internet Banking or ATM-cum-debit Card of SBI.

Indirect Taxes:- GST, Service Tax and Excise Duty

State Bank provides the facility to pay indirect taxes online though our bank’s internet
banking website www.onlinesbi.com. Further for payment of custom duty the customer
can log through customs department (ICEGATE) site or through www.onlinesbi.com.
State Bank of India has been designate as the sole banker for refunds of GST with a
30% market share in GST collections.

State Government Taxes:

State Bank of India has entered into tie up with various State Governments for handling
their tax collections and most State Government Receipts (Taxes/Fees/Penalties, etc)
are paid through SBI Branches or through Internet Banking facility of the Bank. Taxes
are being received by SBI depending on the preparedness of the State Government.

Direct Benefit Transfer:

In FY 2017-18 our Banks has processed over 28.6 crore transactions pertaining to
direct benefit transfer amounting to Rs 1,24,881 crore.
We are the sole banker for processing direct benefit transfer of LPG with over 114.39
crore transactions amounting to Rs 23,076 crore were processed in FY 2017-18
through DBTL.

SCSS-2004:
State Bank of India provides a facility to retired or individuals with age of 60 years and
above to park their retirement benefits in SCSS, 2004 scheme.

Passport Seva. Kendra:

State Bank of India is authorized banker for collection of fees towards application for
passport. Passport fees can be deposited through cash/ SBI internet banking and Debit/
Credit Card (Visa / Master) of all banks.

Atal Pension Yojna :

Old Age Income Security of the working poor in unorganised sector and to encourage
the workers to voluntarily save for their retirement.
Scope of Coverage - 18 Years to 40 Years
Validity - Till maturity (Monthly contribution)
a. Savings Bank Account only
b. Self–Declaration for having NO other account under this scheme.

Benefit (Cover) - Pension of Rs.1000/ Rs.2000/ Rs.3000/ Rs.4000/ Rs.5000 per

month as per Choice of Subscriber.

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Important Central Government E- Projects
 “E-Auction” project of Indian Railway for auction of railway scraps and payment of
EMD amount and sale proceeds.
 “E-Tendering” project of Indian Railway for collection of EMD amount from the
bidders using net banking of SBI. The solution works on lien model where the lien
is created in bidders’ accounts and only successful bidder’s money is transferred
to Government Account. Lien is lifted from the unsuccessful bidders’ accounts
once the tender process is completed.
 Rail Shakti & Cash Pick up for Railways.
 Passport Sewa Project
 Collection of online passport fee through debit/ credit card of any bank and net
banking of SBI.
 Offline collections through any SBI branch.
 Offline collections through 77 Passport Sewa Kendras (PSKs) linked to SBI
branches at these centres.
 Electronic Tourist VISA Project for collection of online VISA fee through payment
gateway provided by SBI e-Pay.
 Fee collection of UPSC and Staff Selection Commission (SSC) exams, National
Permit Fee, License fee.
 National Literacy Mission- Saakshar Bharat: SBI is the partner in 22 states out of
26 States where the programme is running. An IT solution has been specially
developed for NLM for disbursement of funds to State, District and Gram
Panchayat level Implementing Agencies called “Fund–Cum-Authorization Model”.

Current Challenges in Govt. Business

 Reduced earnings on account of migration from physical mode to electronic
modes of collections.
 Increased number of players in the eco system including private banks posing
tough competition.
 Direct flow of funds from Central exchequer to State Treasuries, thereby
reducing float funds.
 Direct Benefit Transfer instead of routing the subsidies through nodal agencies.
 RBI taking over payment Business.

Strategies: (to improve Govt Business.)

 Relationship Building with officials of Govt. Deptt/Auto. Bodies/Colleges/(Dist/Sub-
Division/Block level officers ) – 15th of every month to be called as GBU Day
 Detail analysis of Govt. plan for fund exp. to track fund flow to mobilize deposit & fee
related business. (Waterfall analysis shared with AO’s)
 Campaigns to get more

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 a) Pensioners accounts and also Pensions of Autonomous bodies.
b) Account of Beneficiaries of Govt. Payments.
 Special campaign/Drive may be arranged along with CSR activities in Govt. Offices
at Panchayat/ Distt. Level for capturing salary account of Govt. employees and Govt.
Deptt. as well.
 To arrange awareness camp to make our customers digitally educated.
 Timely submission of DMS and scrolls to concerned departments to avoid
penalty/delay payment interest which effect our profitability adversely.
 Popularizing and opening of PPF/Sukanya Samriddhi Accounts with SIP.
 All account holders to be motivated to register SI in their PPF / SSA accounts.
 Offering PPF & SSA to our existing account holders.

Government Banking Unit

With the intention to give focused attention on Government Banking, Bank has created
Government Banking Unit (GBU) in the year 2006 at New Delhi. Based on the
Relationship concept, the department was created to focus exclusively on marketing for
Govt. Banking business through Relationship Managers.
The GBU acts as a facilitator between the Government and the IT wing of the Bank,
providing end to end technology solutions for the Ministries. The Government Banking
Unit is supported by Government Accounting Department at Belapur, Navi Mumbai
which takes care of accounting and analytics aspects. The Relationship Managers are
responsible for providing various solutions for the Government departments and also
any banking requirement. In addition, a dedicated team is looking after the
requirements of the ministries/departments at State Government level. It also provides
business leads and guidance to the State Government Banking Department working
under respective Circles. In addition to marketing Technology related solutions (e.g.
SBIe-Pay, CMP etc.) in receipts and payments, GBU also takes care of Pension and
DBT related work. In the Small Savings Scheme, GBU is the
• Business owner of PPF, SSA and SCSS accounts and runs various campaigns for
growth in these segments.
• GBU is expected to maintain a close liaison with Government. departments in order
to achieve the business objectives and is the one-point contact for Ministries/Govt.
departments in respect of all the work relating to Government Business viz.
A. Govt. Receipts/payments.
B.Various e-initiatives/IT-Solution requirements of Ministries/Govt. departments.
C. Funds settlement. Maintaining liaison with Ministries/Govt. departments for
authorization of branches for conduct of CBDT/CBEC business.
D. Reconciliation of transactions, etc.
• Govt. Accounts Department (GAD) has been assigned to perform Settlement of
Central Govt. Receipts & Payments & work as Nodal Agency for implementing Small
Deposit Schemes of Ministry of Finance (MoF).
• The functions (operational functions) of GAD, working under GM (GBU) are as
under:

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 A. Whole Bank Central Government Turnover is being routed through GAD.
B. Responsible for prompt and timely settlement of funds, quick reconciliation and
elimination of payments of penal interest.
C. Interact with Ministries/Departments in Government of India (GOI) on the one
hand and Circle CGMs/GMs/RBI/CAS, Nagpur on the other for the above
purpose.
D. Deals with all Focal Point branches of SBI including getting authorization for
branches for conduct of CBDT/CBEC transactions from concerned Government
Departments.
E. GAD is the key intervention point in various BPR initiatives in Pension, PPF, etc.
besides handling OLTAS/ e-Tax/other new applications like online system for
Central Excise, Customs and Service Tax.

The role linkage between GBU (of marketing of business) and GAD (maintenance of
back office operations of Govt. Business) is specified, as per extant arrangement.
However, GBU being the face of government business in the Bank, Government
departments may expect it to look into operational issues also, which it does with inputs
received from GAD.

LET US SUM UP

SBI acts as an agent of RBI for conducting Government Business. The Reserve Bank
of India acts as the banker to the Central Government in terms of Sections 20 and 21 of
the RBI Act, 1934, and as banker to the State Governments in terms of Section 21A of
the Act.

Importance of Government Business

• Facilitates cross-selling of P Segment Products and other products
• No Capital Adequacy requirement
• No risk of bad accounts/NPAs
• Govt. is the largest customer of the Bank
• Largest commission earner
• SBI Commands largest market share

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SBI acts as an agent of RBI in carrying out Government Business in Central
Government Ministries/ Department. SBI has traditionally been the preferred and
accredited Banker to major Central Government Ministries/ Departments. Commanding
the market in Government Business, SBI has a share of more than 80% in Government
Commission. SBI is at the forefront in developing e-Solutions for both Central and State
Government undertakings. This has facilitated transition of Government Business to the
online mode, resulting in greater efficiency and transparency.
SBI is an active stakeholder in the Government’s latest initiatives such as the
Government e-Marketplace and is continuously engaged in developing customized
technology solutions such as e-Tendering, e-BG and e-Trade to keep pace with the
Government’s digital initiatives.

CHECK YOUR PROGRESS

1. Government Business is a key source of fee based income for the Bank and it
assists the Bank in maintaining high level of CASA deposit.
a. True
b. False
2. There is no requirement of maintaining capital adequacy on government
business :
a. True
b. False

3. With the intention to give focused attention on Government Banking, Bank has
created Government Banking Unit (GBU) in the year ……… at ………...
a. 2005, Mumbai
b. 2004, New Delhi
c. 2006, New Delhi
d. 2006, Mumbai

4. The Reserve Bank of India acts as the ………….. to the Central Government and
State Governments .
a. Agent
b. Banker
c. Custodian
d. Trustee

5. The Reserve Bank of India acts as the banker to the Central Government in
terms of provisions of the …………...
a. RBI Act
b. B R Act
c. N I Act
d. None of the above


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 DISCLAIMER

This booklet is to be used as ready reference for the Role

Owners. The Primary Objective of this booklet is to provide

hand holding and guidance in day to day effective working.

For Detailed instructions and further clarifications, if any,

reference may please be made to the related circulars/Manuals

issued by the Bank from time to time.

All efforts have been made to ensure correctness of the facts

and figures mentioned in the booklet as per Bank’s instructions

issued till 31/03/2019.

In case of any suggestions, the same may please be sent to the

Email id :[email protected]
NOTES
NOTES
NOTES
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NOTES
 VISION
Be The Bank Of Choice For
A Transforming India

MISSION
Committed To Providing Simple, Responsive And
Innovative Financial Solutions

VALUES
Service | Transparency | Ethics |
Politness | Sustainability

STU Vision : To Make The Bank Future Ready