B: CIRCULAR CORNER-ADVANCE

 Timely Updation of CGPAN and Linking of CGPAN with Blocking of

Disbursement of Term Loan as well as Cash Credit (Ref.: CO Circular No.
ADV/444/2019-20 dated 04.01.2020 by MSME Department)

Gist of Circular:- To reduce the operational deficiencies in the branches, following

amendments are incorporated in the Finacle with regards to Guarantee cover for
MSME Loans:

1. Guarantee Cover field in MIS Code Tab while master opening is being made
mandatory.

2. Obtention of CGPAN number before Disbursement of Term Loan as well as

Cash Credit Account.

3. Disbursement is blocked for account where CGTMSE cover is available but

CGPAN is not fed or missing.

4. Branches can proceed for disbursement only after respective Regional Offices
update the CGPAN details in the loan master under MIS Code Tab.

 Short Term Crop Loans Eligible for Interest Subvention Scheme(ISS) through
KCC(Ref.: Adv/478/2019-20 dated 16.03.2020 by ARID Dept)

Gist of Circular:- RBI has advised by their circular dated 26.02.2020 that
Interest Subvention for Short Term Crop Loans through non-KCC accounts shall
not be considered beyond March 31,2020. In other words, short term crop loans
through Non-KCCs including Jewel Loans shall be eligible for Interest
Subvention Scheme upto 31st March,2020. Further RBI has advised to ensure
that all Short Term Crop Loans eligible for Interest Subvention(IS) and Prompt
Repayment Incentive(PRI) benefit are extended only through KCC w.e.f. April
1,2020.

The existing short term crop loans which are not extended through KCC shall be
converted to KCC loans by March 31,2020.

 Revamped Guidelines on PMFBY & RWBCIS for implementation from KHARIF

2020 onwards(Ref.: Adv/476/2019-20 dated 09.03.2020 by ARID dept)

Gist of Circular: Ministry of Agriculture and Farmers Welfare, GOI vide their
letter no. 13015/02/2015-Credit II has advised the revamped guidelines on
Pradhan Mantri Fasal Bima Yojana(PMFBY) & Restructured Weather Based
Crop Insurance Scheme(RWCIS) for implementation from Kharif 2020 onwards.
There are following major modification made in the scheme:

Vidyadeepam‐March 2020 Page 13

 
 

(1) The enrolment under the scheme is made voluntary for loanee farmers also
and it is effective from Kharif 2020. The main objective of making enrolment
voluntary is to empower farmers to take an informed decision on mechanism
to protect their crops.

(2) Existing Loanee Farmers will be given a provision to Opt-Out from the
Schemes by submitting requisite declaration to the concerned bank branches
any time during the years but before 07 days from the Cut of Date for
enrolment of farmers for the respective seasons.

(3) All farmers who approach the bank for renewal/fresh KCC shall be asked by
the respective for their willingness/unwillingness to participate in the scheme
and will be enrolled accordingly by the concerned bank branches on National
Insurance Portal.

 Professional Fee of Valuers for Valuation of Immovable Properties(Ref.:

MISC/709/2019-20 dated 05.02.2020 by BOD)

Gist of Circular :- The revised Professional fee of valuers for valuation of

Immovable Properties is detailed hereunder:

Amount Fee Structure

Value of Assets Upto Rs. 1 Lac Rs. 1500/-

Above Rs. 1 Lac to Rs. 5 Lacs Rs. 2000/-

Above Rs. 5 Lacs to Rs. 10 Lacs Rs. 2500/-

Above Rs. 10 Lacs to Rs. 20 Lacs Rs. 3000/-

Above Rs. 20 Lacs to Rs. 50 Lacs 0.14% of the value, Max. Rs. 6500/-

Above Rs. 50 Lacs to Rs. 1 Crore 0.14% of the Value, Max. Rs. 7500/-

Above Rs. 1 Crore to Rs. 5 Crore Rs. 12000/-

Above Rs. 5 Crores Rs. 20000/-

Other Conditions:-

 Where two or more assets are required to be valued at the instances of an

assessee, all such assets shall be deemed to constitute single assets for the
purpose of calculating fee.

 50% of above fee will be payable for revaluation.

Vidyadeepam‐March 2020 Page 14

 
 

 In addition to the above, outstation TA/DA may be paid in case the

Valuer’s do the valuation outside their residency.

 Positioning of Self Help Group(SHGs) member as Business

Correspondents(BCs)(Ref.: ARID-Womencell/73/2019-20 dated 10.03.2020)

Gist of Circular :- As per Department of Financial Services, MoF, GOI vide

letter dated 21.02.2020 has informed that the SHG may be used as Business
Correspondents(BCs).

 Online Marking of Lead Generated Through GST Network(Ref.: ADV/07/2019-20

dated 07.02.2020 by MSME)

Gist of Circular :- The new functionality has been put in place to mark the GST
lead online and tracking by the RO/ZO:

UTILITY: IOB Online - Branch Products  MIS/Reports Processing of GST

Leads.

 Modification of Interest Rate for Vidya Suraksha and Skill Loan (Ref.:
Adv/450/2019-20 dated 10.01.2020 by Retail Banking Department)

Gist of Circular :- ALCO has approved the following Interest Rate to Vidya
Suraksha and Skill Loan Education Loan Scheme w.e.f. 01.10.2019 in order to
continue Guarantee Coverage:

Scheme Name Applicable Interest Rate

Vidya Suarksha-Credit Guarantee Fund RLLR +2.00%

Scheme for Educational Loan(CGFSEL)

Skill Loan-Credit Guarantee Fund RLLR + 1.50%

Scheme for Skill
Development(CGFSSD)

Since the bank is bearing Guarantee Fee, Other interest concessions like girl
children and ward of staff etc. are not permissible under the above schemes.

 Modification of Interest Rates for SHGs Scheme Codes(Ref.: Adv/467/2019-20

dated 20.02.2020 by ARID)

Gist of Circular:- With the implementation of RLLR w.e.f. 01.10.2019, the SHG
scheme codes which are under SME category has been changed to RLLR and
Scheme codes, which falls under Agriculture Category, are continuing under
MCLR.
Vidyadeepam‐March 2020 Page 15

 
 

Important Guidelines:-

(1) All new SHG loans should be opened in the correct SHG code.

(2) Existing SHG accounts, which were opened in other scheme codes should be
changed to proper SHG Scheme Code on Priority Basis.

(3) Proper Classification of category such as Agri and SME should be done for all
the SHG accounts.

(4) All NRLM loan accounts are to be classified under Agri and all NULM loan
accounts are to be classified under SME.

 IOB SME Easy Scheme Modification(Ref.: Adv/404/2019-20 dated 18.02.2020 by

MSME)

Gist of Circular:- The following modification has been done in the existing SME
Easy Scheme:

 Interest Concession for Additional Security: If the value of Prime

Security(FSV for Immovable Property) is 200% and above for the
exposure- a concession of 1.00%(earlier 0.50%) can be extended on the
applicable interest rate.

 IOB GST Ease Product Modification(Ref.: Adv/465/2019-20 dated 17.02.2020 by

MSME)- Validity of the scheme has been extended till 31.12.2020.

 Introduction of New Product- IOB SLC MSME[Standby Line of Credit for

MSME(Ref.: Adv/481/2019-20 dated 23.03.2020 by MSME)

Gist of Circular:- In line with Government objective to boost growth of MSME

units, a scheme has been advised to ease the temporary liquidity mismatch of
MSME units arising out of delayed realization of receivables, our Bank has
framed a new scheme called – called IOB SLC Scheme.

 Amendment to Loan Policy Document: Industry specific benchmark for Key

financial ratios-Corporate and MSME Loans(Ref.: Adv/471/2019-20 dated
27.02.2020 by CSSD)

Gist of Circular :- As per PSB reforms agenda, under Enhanced Access and
Service Excellence(EASE) guidelines, Ministry of Finance, GOI, directed to have
a policy which specifies for separate benchmark ranges for each industry
segments covering at least 60% of the corporate loan (loans with exposure>=Rs.
50 Crores) and MSME Loan Portfolio(Loans with exposure >=Rs. 5 Crores).
Accordingly Bank’s Board has approved “ Industry Specific Benchmark for Key-
Financial Ratio for Corporate and MSME Loans” which are furnished as under:-

Vidyadeepam‐March 2020 Page 16

 
 

Revised Financial Benchmark Ratios for the following Corporate

Industries(Loan with exposures>= Rs. 50 Cr)

Corporate/Industries CR TOL/TNW DEBT/EQUITY DSCR

AVG MIN

Infra-Power, Road 1.33:1 3:1 2:1 2:1 1.5:1

and other Infra
including Telecom

Iron & Steel 1.33:1 4:1 2:1 2:1 1.5:1

Revised Financial Benchmark Ratios for the following MSME Industries(Loan

with exposures>= Rs. 5 Cr)

Infra-Power, Road 1.25:1 4:1 2:1 2:1 1.2:1

and other Infra
including Telecom

Iron & Steel and

Textiles

Food Processing

Gems & Jewellery 1.50:1 3:1 2:1 2:1 1.2:1

 Revision of Delegation Power(Financial)(Ref.: Adv/472/2019-20 dated 28.02.2020

by CSSD):- Board has approved the revised delegation power(financial) on
10.02.2020, the branches are advised to be guided by the above.

 DAY-NRLM: Interest Subvention Scheme for Women SHGs-Year 2019-20 (Ref.:

Adv/438/2019-20 dated 27.12.2019 by ARID):- RBI, vide their letter no.
FIDD.GSSD.CO.NO.1141/09.01.003/2019-20 dated 29.11.2019, has informed the
Weighted Average Interest charged(WAIC) for our bank @ 11.60% for FY 2019-
20 and accordingly Interest to be subvented above 7% based on WAIC subject to
cap of 5.60% is 4.60%(11.60%-7.00%).

 Charging of Annual Service Fee(ASF) /Annual Guarantee Fee(AGF) at

differential rates depending upon NPA Levels/claim Payout Ratio of MLIs by
GTMSE (Ref.: Adv/459/2019-20 dated 12.02.2020):- Apart from Standard Rate,
total risk premium @45% of SR will be charged for all the credit facilities
sanctioned on or after April 1, 2020 and covered under Credit Guarantee
Scheme. The above rate is also applicable on Annual Guarantee Fee(AGF) for FY
2021 to all those guarantees originally approved under differential pricing
structure.
Vidyadeepam‐March 2020 Page 17

 
  B: CIRCULAR CORNER-FOREX
 Settlement System under Asian Clearing Union (ACU Mechanism)(Ref. RBI
Circular no. RBI/2019-20/177 dated 17.03.2020) :
Gist of Circular:
 The Board of Directors of ACU have decided to permit Japanese Yen for
settling payments among the ACU member countries. Accordingly, clause
(a) and (b) of Article IV of the General Provisions of Agreement
establishing the Asian Clearing Union have been revised and the Asian
Monetary Unit is now denominated as "ACU Dollar", “ACU Euro” and
“ACU Yen” which shall be equivalent in value to one US Dollar, one Euro
and one Japanese Yen respectively.

  In order to facilitate transactions / settlements, effective March 06, 2020,

participants in the Asian Clearing Union will have the option to settle
their transactions either in ACU Dollar or ACU Euro or in ACU Japanese
Yen.

  AD banks are allowed to open and maintain ACU Dollar, ACU Euro and
ACU Japanese Yen accounts with their correspondent banks in other
participating countries. All eligible payments are required to be settled by
the concerned banks through these accounts.

 Application form for Outward Remittance against Imports & Comprehensive

Form A2 cum application for Outward Remittance (Ref. FX/69/2019-20 dated
18.02.2020) :
Gist of Circular: - As a continuous process of Improvement, to comply with
regulatory guidelines and considering the operational convenience to the
customers, bank has revised the application form for Outward Remittance
against Imports and Comprehensive Form A2 cum application for Outward
Remittances.

Branches are advised to obtain the revised application form as per Annexure-I
from all the Importers who wish to make outward remittance for the purpose of
Imports and Annexure-II for Outward Remittance for Non-Import.
 Merchanting Trade Transactiona(MTT)-Revised Guidelines (Ref. RBI circular
no. RBI/2019-20/152 dated 23.01.2020) :
Gist of Circular: - RBI has issued a comprehensive guidelines for Merchanting
Trade Transaction vide above circular.
 International GBP Cash Letter Services-Additional requirement (FX/66/2019-20
dated 03.01.2020) :
Gist of Circular: - Bank is undertaking the collection of GBP Cheque/Draft
through Cash Letter Service provided by Standard Chartered Bank(SCB). SCB
has advised new requirement in cheque collection process.

Branches should stamp the front of the cheque with our own banking stamp,
bearing the Bank name and Branch Name and the reverse of the cheque should
continue to be stamped with the endorsement stamp as it is being done. All the

Vidyadeepam‐March 2020 Page 18

 
 

stamps should have at least one language as English. Branches should ensure
that the seal on the face of the cheque must not disfigure any writing on the
cheque.
 Introduction of ‘FX-RETAIL” –Trading Platform promoted by M/s Clear Corp
Dealing Systems(India) Limited[CCIL] (Ref. FX/65/2019-20 dated 31.12.2019) :
Gist of Circular: - Fx-Retail is a trading Platform promoted by M/s Clearcorp
Dealing System(India) Limited(CLEARCORP), a wholly owned subsidiary of M/s
Clearing Corporation of India Limited to cater to the needs of all the customers
viz. Individuals, MSME and Corporate etc to cover their forex purchase or sale,
as per the Statement on Development and Regulatory Policies of RBI.
Key Features of FX-Retail:
 CCIL had developed a web based order matching trading platform for the
retail participants. FX retail platform shall provide for trading in outright
Cash, TOM and SPOT instruments in the USD/INR currency pair.
 The platform will display the best available customer rates of all the banks in
one place. The customers can choose the most competitive rate and buy/sell
forex. The customer also has the option to place his order for a desired
exchange rate to cover his exposure. The customers’ bank will debit/credit the
INR equivalent from /to their account and settle with the forex providing
Bank through CCIL.
 Trading Time: 9.00 AM to 04:30 PM.
 Customers are allowed to place orders based on Trading limits approved by
Bank. Bank will set Trading Limits only for Buy, only for Sell or for Buy and
Sell on Gross/Net Basis separately for Cash, TOM and SPOT.
 Bank will charge mark up fee(margin)/handling charges and other cost if any
in paisa or in percentage terms which will be added/reduced to the trade price
in Buy/Sell transactions.
 Customers are allowed to place orders for maximum of USD 5 Million per
transaction and there is no min. order size.
 CCIL will collect transaction charge of 0.0004% for trade above USD 50,000
per day.
 Schedule of Service Charges for Foreign Exchange Transactions (Ref.:
FX/68/2019-20 dated 10.02.2020) : Bank has issued a comprehensive Service
charge for Foreign Exchange Transaction which will be effective from 10th
March, 2020.
 Crystalization of Overdue Export Bills (Ref.: FX/67/2019-20 dated 22.01.2020) :
Gist of Circular: - The above circular emphasised the importance of crystallization
of overdue Export Bills. No Foreign Currency Bills remain unpaid/crystallized
for more than a period of 30 days after the permitted transit period in case of
demand bills and 30 days from the actual due date for usance bills in their
Export Bills negotiated/purchased/discounted portfolio. Branches should ensure
crystallization of such unpaid export bills on or before 30th day from the due
date/extended due date of the Export Bills.

Vidyadeepam‐March 2020 Page 19

 
  B: CIRCULAR CORNER-RECOVERY
 Follow up of SINPA Accounts (Ref.: ADV/448/2019-20 dated 10.01.2020 by
CrMD) : In NPA Management, Arresting of Slippage plays an important role to
keep the maximum assets under Standard and Performing category. To have an
effective follow up mechanism, bank has issued a details strategy of effective
follow up vide above circular.

 Submission of Data to National E-Governance Services Ltd(NeSL)-Inclusion of

Data pertaining to Partnership firms, Proprietorship concerns and Individuals
(Ref.: Adv/474/2019-20 dated 29.02.2020 by CSSD) :

Gist of Circular :- Hitherto, the bank was submitting financial information of all
corporate loan accounts with exposure above and including Rupees Ten Lakhs to
NeSL.

Ministry of Corporate Affairs vide its Gazette Notification S.O.4126(E) dated

15/11/2019, effective from 1st December 2019 under the IBC 2016 has notified the
Financial Institutions to submit the data pertaining to Proprietorship concerns,
partnership concerns and individual borrowers also to NeSL along with
information on Corporate borrower.

Accordingly Our bank has decided to comply with the aforementioned ministry
directions and to submit the data to NeSL for proprietorship concerns,
partnership firms and individuals borrowers along with the corporate accounts
with exposure above and including Rupees Ten Lakhs.

 One Time Restructuring of Advances to MSMEs-RBI Revised Guidelines (Ref.:

ADV/461/2019-20 dated 15.02.2020 by MSME)

Gist of Circular :- RBI, vide circular reference DBR. No.

BP.BC.18/21.04.048/2018-19 dated 01.01.2019 issued guidelines and permitted
Banks for “One Time Restructuring of Existing Loans to MSMEs”, classified as
standard as on 01.01.2019 without a downgrade in the asset classification. Now
RBI has reviewed the scheme and issued revised guidelines vide circular
reference DOR.No.BP.BC.34/21.04.048/2019-20 dated 11.02.2020 on “One-Time
restructuring of existing loans to MSME”, subject to the following conditions:

 The aggregate exposures, including Non-fund based facilities, of banks

and NBFCs to the borrower does not exceed Rs. 25 cr. as on 01.01.2020.

 The borrower’s account was in default but was a ‘standard asset’ as on

01.01.2020 and continues to be classified as a ‘Standard Asset’ till the date
of implementation of the restructuring.

 The restructuring of the borrower account is implemented on or before

31.12.2020.
Vidyadeepam‐March 2020 Page 20

 
 

 The borrower entity is GST registered on the date of implementation of

the restructuring. However, this condition will not apply to MSMEs that
are exempt from GST-registration. This shall be determined on the basis
of exemption limit obtaining as on January 1,2020.

 It is clarified that accounts which have already been restructured in terms

of the circular dated 01.01.2019 shall be ineligible for restructuring under
this circular.

 Payment of Fees to Recovery Agents to facilitate Settlement of NPA

accounts upto Rs. 1 cr under Special OTS Scheme (Ref.: SAMD/17/2019-20
dated 04.02.2020 by SAMD)

Gist of Circular :- The board in its meeting held on 21.01.2020 has

approved renewal of the fee structure upto 31st March 2020 to fees payable
to recovery agents to facilitate settlement of NPA accounts upto Rs. 1 cr.
under special OTS scheme is given below:

Category Amount of Recovery Fees Payable

<= Rs. 1 Lakh 5%

Rs. 1 Lakh to Rs. 50 Lakhs Rs. 5000/- + 3% over and above Rs. 1
D1 Lakhs(Max. Rs.1.50 Lakhs)

Rs. 50 Lakhs to Rs. 1 Cr. Rs. 1.50 Lakhs + 5% over and above
Rs. 50 Lakhs(Max. Rs. 2.50 Lakhs)

<= Rs. 1 Lakh 7%

Rs. 1 Lakh to Rs. 50 Lakhs Rs. 7000/- + 4% over and above Rs. 1
Lakhs(Max. Rs.2.00 Lakhs)
D2
Rs. 50 Lakhs to Rs. 1 Cr. Rs. 2.00 Lakhs + 3% over and above
Rs. 50.00 Lakhs(Max. Rs. 3.50
Lakhs)

<= Rs. 1 Lakh 10%

Rs. 1 Lakh to Rs. 50 Lakhs Rs. 10000/- + 5% over and above Rs.
D3 & Loss 1 Lakhs(Max. Rs.2.55 Lakhs)

Rs. 50 Lakhs to Rs. 1 Cr. Rs. 2.00 Lakhs + 4% over and above
Rs. 50 Lakhs(Max. Rs. 4.55 Lakhs)

Vidyadeepam‐March 2020 Page 21

 
 

 Policy for Empanelment of Debt Recovery Agents and Detective /Investigating

Agency (Ref.: Master/Misc/708/2019-20 dated 04.02.2020 by SAMD) :
Department has issued a Master circular on the captioned subject.

 Policy on transaction involving transfer of assets through Direct Assignment of

Cash Flows and underlying securities. (Ref.: ADV/442/2019-20 dated 03.01.2020
by MSME) : Department has issued a details policy guidelines on the
aforementioned subject.

 Prudential Norms on Income Recognition, Asset Classification and Provisioning

pertaining to advances - project under implementation (Ref.: -Transient Series
circular no. 31 of File of 2019-20 dated 15.02.2020) :

Gist of Circular :- RBI vide its letter no.DOR.no.BP.BC.33/21.04.048/2019-20

dated 07.02.2020 has harmonised the guidelines for deferment of date of
commencement of commercial operations(DCCO) for project in non-
infrastructure and commercial real estate(CRE) sectors, which are as under:

 Revision of the date of DCCO and consequential shift in repayment

schedule for equal or shorter duration(including the start date and end
date of revised repayment schedule) will not be treated as restructuring
provided that:

(a) The revised DCCO falls within the period of 1 year from the original
DCCO stipulated at the time of financial closure of CRE projects and

(b) All other terms and conditions of the loan remain unchanged.

 In case of CRE projects delayed for reasons beyond the control of

promoter(s), banks may restructure them by way of revision of DCCO
upto another 1 year(beyond the 1 year period quoted above) and retain
the ‘Standard Asset’ classification if the account continues to be serviced
as per the revised terms and conditions under the restructuring.

 Banks while restructuring such CRE project loans under instructions

above will have to ensure that the revised repayment schedule is
extended only by a period equal or shorter than the extension of DCCO.

 Banks may fund cost overrun that arise on account of extension of DCCO.

Vidyadeepam‐March 2020 Page 22

 
  B: CIRCULAR CORNER-MISCELLANEOUS
 Accounts Opening for Individuals (Ref.: Misc/704/2019-20 dated 21.01.2020 by
KYC cell): For opening accounts of Individuals, the following documents to be
obtained:

(a) A certified copy of any OVD containing details of his identity and address.

(b) One recent photograph

(c) The permanent account no. or Form No. 60 as defined in Income Tax Rules,
1962,and

(d) Documentary proof for Source of Income/Nature of Business.@@

@@ Appropriate Documentary Proof for Source of Income/Nature of Business as

per CO circular no. MISC/696/2019-20 dated 09.01.2020 are as under:-

Category Certificate to be Obtained

Salary and Wage Earners Salary Certificate /Employment Certificate

Traders/Small Businessmen Copy of Income Tax Returns/GST/Any

registration certificate

Professional & Self Copy of IT return

Employment

Retired Person/Pensioners Copy of PPO/Proof Regarding Retirement from

the service

Landlords/House owners Rent Receipt/copy of Rental Agreement

Housewife/Students Self declaration for source of credit

Farmers/Agriculturist Copy of chitta/patta, Adangal or any

supportive documents

Others(If customers cannot be Suitable certificate for source of credit/self

classified in any one of the declaration.
above only)

 Aadhar Enrolment Centres(AECs)-Guidelines for Aadhar Enrolment/Updation

in case of NRIs (Ref.: Misc/717/2019-20 dated 19.02.2020 by Financial Inclusion
Department): UIDAI has advised the following guidelines in connection with
Aadhar Enrolment and Updation process of NRIs:

(1) NRI has to submit Valid Indian Passport as POI(Proof of Identity document).
No other POI documents will be accepted for NRI enrolment.

Vidyadeepam‐March 2020 Page 23

 
 

(2) Only Indian Address shall be captured at the time of enrolment/update.

(3) Any valid POA or DOB documents available for residents as per UIDAI
notification no. 314 dated 05.09.2019 will also applicable to NRI.

(4) Providing E-mail ID shall be mandatory for NRI

(5) UIDAI will create provision to capture foreign mobile no., if Indian mobile no.
is not available.

(6) NRI can act as HOF(Head of Family) for Aadhar Enrolment/Update of his/her
family members residing in India.

(7) Introducer based enrolment will not be available to NRI etc

 Staff: Industrial Relations-Amendment to the schedule of Indian Overseas Bank

Officer Employees’(Discipline and Appeal) Regulations, 1976 (Ref.: EST/77/2019-
20 dated 29.02.2020 by HRMD-IR Section): The following amendment to the
schedule has been approved by Board of Directors of our Bank at the meeting
held on 27.11.2019:

Name/Category Disciplinary Appellate Authority Reviewing Authority

of Post Authority

Scale I AGM DGM GM

Scale II & III DGM GM ED or in his absence

MD& CEO

Scale IV & V GM ED or in his absence MD & CEO or in his

MD& CEO absence/in case he is
functioning as Appellate
Authority, the committee
of the board

Scale VI ED or in his MD & CEO or in his Board

absence MD& CEO absence/in case he is
functioning as
Appellate Authority,
the committee of the
board

Scale VII MD & CEO or in Committee of the Board

his absence ED Board

Vidyadeepam‐March 2020 Page 24

 
 

 Bank has issued COMPLIANCE POLICY-2019 vide CO circular no.

MISC/699/2019-20 dated 10.01.2020 by Compliance Department.

 Bank has issued Revised Policy guidelines on Fraud Risk Management and
Fraud Investigation Function-2019 & Standard Operating Procedure for
Reporting Frauds and Follow up Action vide circular no. MISC/730/2019-20
dated 12.03.2020 by Risk Management Department(FRMC).

 Bank has issued Corporate Communication Policy vide Circular no.

MISC/716/2019-20 dated 13.02.2020 by Public Relation Department

 Bank has reviewed(2019) the Expenditure Policy 2017 vide Circular no.
MISC/728/2019-20 dated 12.03.2020 by General Administration Department.

 Bank has issued Guest House Policy vide Circular no. MISC/727/2019-20 dated
12.03.2020 by General Administration Department.

 Bank has issued Policy on Outsourcing of Cash Management vide circular no.
SECY/17/42 dated 10.03.2020 by Security Department

 Bank has reviewed(2019) the Procurement Policy 2017 for General

Administration Department vide Circular no. MISC/726/2019-20 dated
12.03.2020 by General Administration Department.

 Bank has introduced Reward and Recognition Policy for Top Performers of the
bank in various parameters vide circular no. Transient Series(File F) circular no.
135/2019-20 dated 02.01.2020 by HRDD

 Online Resolution of Grievances-Introduction of Standardised Employee

Grievance Redressal System(SEGRS)(Ref.: Transient Series (File F) circular no.
136/2019-20 dated 02.01.2020) : In order to have a formalized grievance
redressal mechanism for our staff members, it is decided to introduce online
resolution of grievances in our bank. Accordingly, an online portal namely
“Standardized Employee Grievance Redressal System-SEGRS” in line with
existing SPGRS has been created and ported in IOBONLINE.

 Opening of Current Accounts-Need for Discipline (Ref.: MISC/703/2019-20 dated

27.01.2020 by BOD) : Of late, RBI has been receiving many complaints regarding
opening of current accounts by the Bank without obtaining NOC from lenders. In
this connection, reference is invited to RBI circular no.
DBR.LEG.BC.25/09.07.2005/2015-16 dated July 02,2015 which states that Banks
may also seek “ No Objection Certificate” from the drawee bank where the initial
deposit to the current account is made by way of a cheque.

Vidyadeepam‐March 2020 Page 25

 
 B: CIRCULAR CORNER-ADVANCE
Complied by Mr. Ranjay Kumar Jha

Chief Manager(Faculty)

Clarification on Loan to Staff/Ex-Staff Against Deposits Standing in their Name(Ref.

CO Circular No. ADV/4/2020-21 dated 20.04.2020 , issued by CSSD)

Gist of Circular: The bank has clarified the interest rate charged on loan to staff/ex-
staff against deposits in their names as under:

Particular Type of Credit Rate of Interest Margin

Facilities
To Staff Members Demand Loan & Deposit Rate 5%
singly or jointly with CC@@ against +0.50%
members of their Deposits standing
family in the staff
members name
To ##Ex-Staff Demand Loan & Deposit Rate 5%
Members singly or CC against +0.50%
jointly with Deposits standing
members of their in the staff
family members name

## Not include employees, who has resigned or removed from the bank.
@@ As per HRMD-IR section circular no. EST/47/2018-19 dated 06.10.2018, staff
members are not allowed to hold any additional accounts under Cash Credit in
their primary customer id, even under Non-Staff Scheme.

New Scheme Launched- COVID 19-Line of Support for MSME(CLSM) (Ref.:

ADV/484/2020-21 dated 02.04.2020 & ADV/07/2020-21 dated 02.05.2020,issued by
MSME)
Gist of Circular: The bank has launched a CLSM scheme vide circular no.
ADV/484/2020-21 dated 02.04.2020 and the same have been modified on
02.05.2020 vide circular no. ADV/07/2020-21. The scheme will provide relief to our
MSME borrowers, whose operations are impacted by the Novel Coronavirus/COVID
19. The loan under the scheme in the form of “Working Capital Demand Loan” can
be granted to the existing MSME units having credit limits with satisfactory credit
record of 2 years. Maximum WCDL can be granted upto 10% of specific existing
fund based working capital facility subject to the maximum limit of Rs. 25 Crores.
Existing MSME customer who have availed special loan products like IOB SLC & GST
Ease are also eligible for the facility. However, the total additional exposure
including the present facility should not exceed 25% of the existing FBWC exposure.
Min. Internal rating(Hurdle Rating) will be “IOB 6 under RAM Rating” & “IOB 7 under
CRRM Rating”. The loan should be repaid in maximum of 12 months after a
moratorium period of 06 months(12+6=18 Months). GL Code: 33506; Scheme Code:
CLOSM. The Scheme is Valid upto 31.07.2020.

Vidyadeepam-June 2020 Page 12

Introduction of new Product-“IOB COVID 19-WCDL” for Corporate Borrowers (Ref.:
ADV/491/2020-21 dated 04.04.2020.)
Gist of Circular: Bank has brought out new scheme “ IOB COVID 19-WCDL” to ease
the temporary liquidity mismatch of Corporate Borrowers. The loan under the
scheme can be granted to existing Corporate Credit Borrowers who are enjoying
working capital facility from IOB with satisfactory credit record of two years. WCDL
upto 10% of the existing fund based working capital facility subject to the maximum
limit of Rs. 25 Crores. Hurdle Rating : Min. External Rating of “BBB” & Internal Rating
upto IOB-5 under RAM Rating. Max. Repayment Period 6 monthly instalments after a
moratorium period of 6 months(6+6=12 Months).The scheme is valid upto
31.05.2020.

Introduction of new Scheme under Agriculture-“IOB COVID 19-Support Scheme for

SHG(Ref: ADV/488/2020-21 dated 04.04.2020)
Gist of Circular: Bank has launched this scheme in order to provide some degree of
relief to SHG members impacted by COVID 19 Pandemic. The loan under the
Scheme can be granted to existing Women SHG borrowers, who have availed a
minimum of two doses of credit and whose existing account is standard as on 1 st
March, 2020. The loan can be granted in the form of Term Loan(Scheme Code:
SHGCO) with Initial Moratorium period of 06 months and after that loans should be
repaid in 30 EMIs(Total: 30+6=36 months). Maximum Loan to the group can be Rs.
1,00,000/- (Rs. 5000/- per member). The loan can be disbursed to the saving
account of SHG. There should be NIL margin, Security and Processing charge in the
account. The Interest rate will be 1 Yr MCLR + SP(0.20%)+ RP(0.95%). The scheme is
valid till 30.06.2020. Further the scheme has been extended till 31.12.2020 vide
circular no.ADV/42/2020-21 dated 29.06.2020.

Introduction of new Scheme under Agriculture-“COVID 19 –WCDl-AGRI(Ref:

ADV/487/2020-21 dated 04.04.2020)
Gist of Circular: Our Bank has launched this scheme in order to provide relief to the
agriculturists whose operations are impacted by COVID 19 due to reduced sale or
delayed realization of receivables. The loan under the scheme can be granted in
the form of WCDL(Working Capital Demand Loan) with initial moratorium period of
6 months and thereafter to be repaid in 6 EMI(Total Tenure= 6 + 6= 12 months) to
the existing borrower already enjoying CC /OD for sectors like Poultry, Fisheries,
Dairy, other allied activities , cold storage & Rural Godowns. The existing account of
the borrower should be standard and performing as on 1st March, 2020. Maximum
Loan amount will be 10% of existing limit or Rs. 10 Crores(For Poultry- Max.: Rs. 10 Cr
and for others Max. will be Rs. 2 Cr only). The existing account should have valid
RAM or New CRRM rating. This loan can be sanctioned by the authority on whose
power the amount falls as per latest delegation power irrespective of the original
loan sanctioning authority. The rate of interest, margin and other concession will be
as per existing sanction terms and conditions. There will be NIL processing charge.
Extension of charge on existing Prime and Collateral Security should be done. The
Scheme is valid till 30.06.2020.

Vidyadeepam-June 2020 Page 13

Relief Measure to Borrowers affected by COVID 19(Ref.: ADV/489/202-21 dated
04.04.2020)
Gist of Circular: Entire world has been affected by the deadly COVID 19 Pandemic
and India is no exception. Due to the Pandemic, the entire country has been
locked down and the economic activities have come to a grinding halt.
RBI vide its circular no. RBI/2019-20/186, DOR No. BP.BC.47/21.04.048/2019-20 dated
27.03.202 has announced regulatory measure to ease out the burden of debts on
the borrower, which are as under:
 All Term Loans (Including AGTL, Retail Loans, Crop Loans) are permitted to
grant a moratorium three months on payment of all instalments falling due
between March 1,2020 to May 31, 2020. Residual Tenor of such loans will also
be shifted to 3 months across the board.
 In respect of CC/OD, Banks are permitted to defer the recovery of interest
applied in respect of all such facilities during the period from March 1, 2020
upto May 31,2020.
 Bank has issued a details guideline on “SMA & NPA classification” vide its
Circular no. ADV/485/2020-21 dated 02.04.2020 & FAQ by Credit Monitoring
Department vide its circular no. ADV/486/2020-21 dated 03.04.202.
 Easing out Working Capital Financing by recalculating drawing power
through reduction of Margin (Available only upto 31st May,2020).

Short Term Crop Loan Eligible for Interest Subvention(ISS) and Prompt Repayment
Incentives (PRI) through KCC(Ref ADV/492/2020-21 dated 04.04.2020)
Gist of Circular: Due to complete lockdown in most of the states in the country and
restrictions on movement except for providing essential service, RBI has advised
that Banks may convert the existing Short Term Crop Loans including Agriculture
Gold Loans into KCC loans by June 30, 2020(Earlier it was up to 31st March,2020)
with commensurate extension of Interest Subvention(IS) and Prompt Repayment
Incentive(PRI) benefit against such accounts till June 30,2020.

CGTMSE removed the Tenure CAP of 10 years for coverage of Working Capital
Facilities(Ref.: ADV/12/2020-21 dated 23.04.2020 & CGTMSE Circular no. 168/2019-
20 dated 18th March,2020)
Gist of Circular: In terms of CGTMSE Circular no.149/2018-19 dated June 7,2018,
CGTMSE had been approving guarantee to cover the working capital facility for a
maximum period of 10 years(In block of 5 years) including intervening
renewal/enhancement, if any.
Now CGTMSE has removed the tenure cap of 10 years for coverage of working
capital facilities under Credit Guarantee Scheme. However, a review would be
undertaken after each block of 5 years by CGTMSE before renewal of the
guarantee coverage for next 5 years. There are three formats advised by CGTMSE
for review of working capital limit(Annexure 1: Working Capital Limit upto Rs. 10
Lacs; Annexure 2: Working Capital Limit above Rs. 10 Lacs< Rs. 50 Lacs & Annexure
3: Working Capital Limit of Rs. 50 Lacs and above).

Vidyadeepam-June 2020 Page 14

Further Simplification of PMEGP Scheme Procedures-Selection of Application and
flow of application through PMEGP e-portal(Ref.: MSME/153/2020-21 dated
06.05.2020)
Gist of Circular: New online system for PMEGP Scheme has been introduced from
01.07.2016 onwards, the details enumerated in circular no. 39 dated 14.09.2016 and
Circular no. 53 dated 14.12.2016. As per the guidelines from KVIC, all PMEGP
applications to be sanctioned within the stipulated time and the disposals should
be marked in the KVIC portal.

The following modification has been done in online procedures of PMEGP

Applications in order to further simplify the procedures (Amendment Notification
circular no. PMEGP/Policy/2020-21 dated 06.05.2020)

 DLTFC (District Level Task Force Committee) role for recommendation of

Proposal/Application to Financing Banks has been discontinued vide
MoMSME letter dated 28.04,2020. Now DLTFC role will be limited to Monitor
the Performance of PMEGP Scheme on the Quarterly Basis.
 The State/District Level Implementing agencies viz. KVIC, KVIB and DICs after
receiving the applications will scrutinize the applications preliminary,
examining the personal and factual details mentioned in the applications
along with the detailed project reports may be forwarded by implementing
agencies directly to the Bank for taking credit decision (Implementing
Agencies will forward the application in max. time of 3 weeks from the date
of receipt of application)
 Preference to be given to those applicants, who have already undergone
training of at least 2 weeks under EDP(Entrepreneurship Development
Programme)/SDP(Skill Development Programme)/ESDP(Entrepreneurship cum
Skill Development Programme(ESDP) or Vocational Training. Priority should
also be given to those who have affected by Natural Calamities/disaster in
areas.
 Bank should sanction/reject the application within maximum period of 30
days and IBA scoring model should be used for appraising the appraisal.

Large Exposures Framework (Ref.: ADV/10/2020-21 dated 07.05.2020)

Gist of Circular: In terms of Para 7.13 of RBI circular no. DBR No.
BP.BC.43/21.01.003/2018-19 dated June 3, 2019, any Credit Risk Mitigation(CRM)
instruments (e.g. SBLC/BG from Head Office/Other Overseas Branches) form which
CRM benefits like shifting of exposures/risk weights etc. are not derived, may not be
counted as an exposure on the CRM provider.

Now the RBI has clarified the above clause will also apply to Non-fund based credit
facilities provided to a person resident outside India i.e. the exposure can be
reckoned on the person resident outside India instead of treating it as an exposure
on Head Office/Other Overseas Branch, provided the transaction is otherwise

Vidyadeepam-June 2020 Page 15

compliant with Foreign Exchange Management (Guarantee) Regulations,
2000(FEMA 8).

The exposures thus shifted to a person resident outside India, will attract a min. risk
weight of 150%.

Legal Entity Identifier (Ref: ADC/11/2020-21 dated 07.05.2020)

Gist of Circular: RBI vide its circular no. FMRD.FMID.No.24/11.01.007/2019-20 dated

27.03.2020 has advised having extended the timeline under Phase-III in the context
of the difficulties arising from the outbreak of novel coronavirus disease (COVID 19).
In order to enable smoother implementation of the LEI system in non-derivative
markets, the timeline for phase III (Net Worth of the Entities: Rs. 200 Cr) has been
extended from current deadline of March 31,2020 to September 30,2020.

Priority Sector Lending- Lending by Banks to NBFCs for On-lending (Ref.:

ADV/15/2019-20 dated 12.05.2020)

Gist of Circular: RBI vide its circular no. FIDD.CO.Plan.BC.07/04.09.01/2019-20 dated

August 13,2019 advising, inter alia that the bank loans to registered NBFCs (Other
than MFIs) for on-lending will be eligible for classification of Priority Sector under
respective categories subject to the following conditions up to March 31,2020 and
will be reviewed thereafter:

 Agriculture: On-lending by NBFCs for ‘Term Lending’ component under

Agriculture will be allowed up to Rs. 10 lakhs per borrower.

 Micro & Small Enterprises: On Lending by NBFCs will be allowed up to Rs. 20

lakhs per borrower.

 Housing: Enhancement of the existing limits for on-lending by HFCs vide para
10.5 of RBI Master Direction on Priority Sector Lending dated 07.07.2016 from
Rs. 10 Lakhs per borrower to Rs. 20 lakh per borrower.

Accordingly, after taking a review by RBI, it has been decided to extend the
Priority Sector classification for Bank Loans to NBFCs for on lending for FY 2020-21.
Further, existing loan disbursed under the on lending model will continue to be
classified under Priority Sector till the date of repayment/maturity.

Liberalised Working Capital Assessment(LWCA) Model for MSME borrowers(Ref.:

Adv/19/2020-21 dated 15.05.2020)
Gist of Circular: To provide relief to our MSME borrower, whose operations are
impacted by the outbreak of Novel Coronavirus (COVID 19) and as per RBI
circular DOR.No.BP.BC.47/21.04.048/2019-20 dated 27.03.2020 for COVID-19

Vidyadeepam-June 2020 Page 16

 regulatory package, for easing the working capital finance, our bank has come
up with following models:

1. LWCA model for MSME borrowers upto Rs. 5 crores (Including Revised
Limits)

2. LWCA model for MSME borrowers having limits above Rs. 5 Crores.

Submission of Education Loan Foreign Studies Subsidy Claim(Ref.: Misc/12/2020-21

dated 18/05.2020)

Gist of Circular: The Government of India has now advised the Banks to submit
the Education Loan Interest Subsidy claims under below mentioned schemes:
S.N. Scheme Name Period Scheme Details-
Reference
01 PADHO PRADESH 1ST Jan 2020 to 31st Misc/200.2017-18
March 2020 dated 21.08.2017
issued by RBD
02 Dr. Amebdkar Central Sector 1 Oct 2019 to 31 ADV/189/2017-18
st st

Scheme of Interest Subsidy on Dec 2019 dated 07.02.2018

Education Loans for Overseas & issued by RBD
Studies for the Students belonging 1 Jan 2020 to 31
st st

to the OBCs/EBCs March 2020

All the branches are advised to claim interest subsidy for all the eligible borrowers as
per the scheme guidelines without any omission. ROs to submit the consolidated
claim report through mail to Retail Banking Departent, CO on or before 25.05.2020.

CLSS-PMAY(U)-Extension of Credit Linked Subsidy Scheme for MIG uoto 31st March,
2021(Ref,:ADV/23/2020-21 dated 21.05.2020)

Gist of Circular: On the basis of feedback received from National Housing

Board(NHB), Housing Urban Development Corporation Ltd(HUDCO) & State Bank of
India(SBI), the three Central Nodal Agencies involved in implementation of scheme,
the competent authority in Ministry has decided to extend the time period of the
credit Linked Subsidy Scheme for Middle Income Group (CLSS for MIG) by one year,
which will be effective from 01.04.2020 to 31.03.2021.

Guaranteed Emergency Credit Line[GECL](Ref. ADV/25/2020-21 dated 26.05.2020)

Gist of Circular: GOI through MoF, DFS has introduced the Emergency Credit Line
Guarantee Scheme(ECLGS) for providing 100% guarantee coverage for additional
working capital term loans (in case of Banks & FIs) upto 20% of their entire
outstanding credit upto Rs. 25 Cr i.e. upto Rs. 5 Cr, as on February 29,2020, subject
to the account being less than or equal to 60 days past due as on that date i.e. All

Vidyadeepam-June 2020 Page 17

borrowers which have not been classified as SMA2 or NPA by any of the FIs as on
29.02.2020 will be eligible for the scheme.

This facility to be provided to the eligible Business Enterprises/MSME borrowers,

including PMMY borrowers, in view of COVID-19 crisis, as a special scheme.

The details operation guidelines are elaborated in the aforementioned circular.

NCGTC has also issued guidelines related to Online Portal for ECLGS, the same has
been advised by the bank vide their circular no. ADV/38/2020-21 dated 05.06.2020.
Modification related circular has also been issued on 15.06.2020 vide circular no.
ADV/39/2020-21

Large Exposure Framework-Increase in Exposure to a Group of Connected

Counterparties (Ref.: ADV/24/2020-21 dated 26.05.2020)
Gist of Circular: On account of COVID-19 pandemic, debt markets and other
capital market segments are witnessing heightened uncertainty. As a result, many
corporates are finding it difficult to raise funds from capital market and are
predominantly dependent on funding from the Banks.

Therefore, with a view to facilitate greater flow of resources to corporate, RBI has
decided, as a onetime measure to increase a bank’s exposure to a group of
connected counterparties from 25% to 30% of the eligible capital base of the
bank(Tier1 Capital). The increased limit will be applicable upto June 30,2021.

COVID 19 Regulatory package –Extension of Moratorium period & Asset

Classification (Ref. ADV/28/2020-21 dated 29.05.2020)
Gist of Circular: As per RBI notification dated 22.05.2020 the following actions will
be implemented.

 All Term Loan Accounts/Working Capital facilities which were standard as on

01-03-2020, including accounts under SMA, shall remain standard until the
expiry of moratorium period i.e. from 01-03-2020 to 31-08-2020.

 This moratorium period shall not result in the downgrade of Asset

Classification/SMA Status of all the accounts from 01-03-2020 to 31-08-2020
and shall not adversely affect the credit history of the borrowers from 01-03-
2020 to 31-08-2020.

 The Systemic implementation of the above shall be taken care of at Central

Office.

Vidyadeepam-June 2020 Page 18

Emergency Credit Line Guarantee Scheme [ECLGS](Ref. ADV/31/202-21 dated
05.06.2020)
Gist of Circular: Bank has clarified the loan to Business Enterprises in context of
ECLGS as under:

“Business Enterprises included any Registered Business activities under taken, which
includes Agriculture Advances like Poultry Firms, Dairy Production & Processing
Units, Fish Culture & Processing Units, Agri Clinic & Agri Business Centre’s, Cold
Storage, Rural Godowns etc as a Registered Business activities.

Registered Food & Agro Processing units are eligible to be covered under this
scheme.

Allied Activities to Agriculture like Fishery, Bee Keeping, Poultry, Dairy, Goat Rearing
and other agriculture allied activities under taken by
Prop./Partnership/Companies/firms are eligible to be covered under the scheme.

Modification in Loans for Investment Credit and Allied Activities against Security of
Gold Ornaments-AGTAJ Scheme(Ref.: ADV/30/2020-21 dated 05.06.2020)

Gist of Circular: The loan under the above scheme has been modified vide above
circular. The quantum under the scheme has been increased from Rs. 10 Lacs to Rs.
25 lacs per borrower.

Memorandum of Understanding with NSDL e-Governance Infrastructure

Limited(NSDL E-Govt.) for providing GST Verification Services (GVS) (Due Diligence)
through their NSDLgst Portal(Ref.: ADV/493/2020-21 dated 13.04.2020)

Gist of Circular: Bank has signed a MOU with NSDL e-Governance Infrastructure
Limited (NSDL E-Govt.) for providing GST verification services through their NSDLgst
Portal. Initially 74 Regional Offices and Branches have been provided with Login
Credentials (List of Branches are available in abovementioned circular). GVS
reports will be very good tools for carrying out the Due-Diligence and which is
required at each stages of loans. Some of the benefits of GVS reports and its
usefulness for the branches/loan sanctioning offices are given below:

1. For appraisal and monitoring of credit, GST verification services(GVS) will be

very useful to prevent double finance, malafide transactions etc.

2. Drawing Power against Book-Debts can be easily counterchecked from their

list of debtors in GSTN site.

3. Authenticity of the GSTIN provided by the customer can be checked from

the GSTIN database.

Vidyadeepam-June 2020 Page 19

 4. Date of Registration, Legal Name of the business and Trade Name of the
business, Nature of Business activities, Constitution of Business, Taxpayer Type,
Permanent/Registered Address and Address of Additional place of Business, if
any can be searched from the database.

5. By tracking the Return Status of the customer, we can find out whether the
customer has filled GSTR-1 and GSTR-3B returns along with the date of filling.

6. Bank can also find out list of suppliers (Creditors) and list of Buyers (Debtors) of
borrowers through GVS by accessing through their invoices filed in GST and
list of their top customers.

7. It is useful tool for the Bank and the credit officer/branch can cross verify with
the customer submitted data to avoid any fraudulent activity in view of
submission of false data.

Vidyadeepam-June 2020 Page 20

 B: CIRCULAR CORNER-FOREX
Complied by Mr. Ranjay Kumar Jha

Chief Manager(Faculty)

Voluntary Retention Route(VRR) for Foreign Portfolio Investors(FPIs) Investments in

debt-relaxations(Ref.: A.P.(DIR Series) circular no. 32/RBI/2019-20/239 dated
22.05.2020)

Gist of Circular:
Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to the
Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified vide
Notification No. FEMA.396/2019-RB dated October 17, 2019, as amended from time
to time, and relevant directions issued thereunder. Attention is also invited to A.P.
(DIR Series) Circular No. 34 dated May 24, 2019 (hereinafter Directions) read with
A.P. (DIR Series) Circular No. 19 dated January 23, 2020 and the press release dated
January 23, 2020 on reopening of allotment of investment limit under the Voluntary
Retention Route (VRR).

In terms of para 6(a) of Annex to the Directions, Foreign Portfolio Investors (FPIs)
shall invest at least 75% of their ‘Committed Portfolio Size’ (CPS) within three months
from the date of allotment. In view of the disruptions caused by COVID-19, it has
been decided to allow FPIs that have been allotted investment limits, between
January 24, 2020 (the date of reopening of allotment of investment limits) and April
30, 2020, an additional time of three months to invest 75% of their CPS. For FPIs
availing the additional time, the retention period for the investments (committed by
them at the time of allotment of investment limit) would be reset to commence
from the date that the FPI invests 75% of CPS.

Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit-
Extension (Ref.: ADV/22/2020-21 dated 20.05.2020)

Gist of Circular: Government of India has approved the extension of Interest

Equalisation Scheme for Pre and Post Shipment Rupee Export Credit, with same
scope and coverage, for one more year i.e. upto March 31,2021. The extension
shall take effect from 01.04.2020 t0 31.03.2021 covering a period of one year.

Imports of Goods and Services –Extension of Time Limits for Settlement of Import
Payment

Gist of Circular: Due to disruptions on account of outbreak of COVID-19 pandemic,

it has been decided by RBI vide notification dated 22.05.2020 to extend the time
period for completion of remittance against such normal imports (except in cases
where amounts are withheld towards guarantee of performance etc.) from six

Vidyadeepam-June 2020 Page 21

months to twelve months from the date of shipment for such imports made on or
before July 31,2020.

Pre-Shipment & Post Shipment Export Credit –Extension of Period of Advance (Ref.
RBI circular no. DOR.DIR.BC.No.73/04.02.002/2019-20 dated 23.05.2020)

Gist of Circular:
In view of the outbreak of Covid-19 pandemic, the exporters have been facing
genuine difficulties such as delay / postponement of orders, delay in realisation of
bills, etc. In this regard, RBI has already permitted the period of realisation and
repatriation of the export proceeds to India to be increased from nine months to 15
months from the date of export in respect of exports made upto July 31, 2020. In line
with this relaxation, it has been decided to increase the maximum permissible
period of pre-shipment and post-shipment export credit sanctioned by banks from
one year to 15 months, for disbursements made upto July 31, 2020.

Vidyadeepam-June 2020 Page 22

 B: CIRCULAR CORNER-RECOVERY
Complied by Mr. Ranjay Kumar Jha

Chief Manager(Faculty)

Formation of Regional Office Committee for NCLT Matters due to Closure of Zonal
Office (Ref.: PER/MISC/03/2020-21 dated 17.04.2020)

Gist of Circular: Zonal Office Committee for NCLT matters were vested with
discretionary powers for taking decision in respect of various agendas including
resolution plans, interim finance fixation of fees to RP/Liquidators, process advisors,
valuers, expenses to be incurred towards CIRP, etc.

Consequent to closure of Zonal Office w.e.f. 01.04.2020(existing setup to continue till

30.04.2020 or further orders), as per SOP issued by Planning Department, the
decision on Resolution Plan, Sanction of Interim Finance, Contribution to Pooled
funds/corpus funds falling under ZO power shall henceforth be referred to
HLCC(GM) at Central Office. All other issued pertaining to NCLT matters falling
under the power of ZO shall be decided by ROs. Further as per SOP, appointment of
IRP/RP and payment of fees to the shall be recommended by RO to CO. For the
purpose of taking decision on NCLT matters, a committee has to be formed at
Regional Office.

The constitution of the committee shall be as under:

1. Regional Manager- Chairman(Compulsory)

2. AGM/CM in charge of Recovery in NPAs
3. Chief Manager-Inspection
4. Chief Manager-Advances
Minimum Quorum is 3 with chairman’s presence compulsory.

Staff Accountability (Ref. MISC/05/2020-21 dated 20.04.2020)

Gist of Circular: Credit Monitoring Department, CO has issued circulars vide no.
ADV/589/2015-16 dated 29.06.2015; ADV/314/2018-19 dated 26.12.2018; and
ADV/437/2019-20 dated 17.12.2019 on Staff Accountability.

The clause 12 of circular dated 29.06.2015 states the following

“ No disciplinary proceedings will ordinarily lie against any official for any lapse not
detected within two successive RBIA (erstwhile Internal Inspections) or Four years
from the date of event whichever is later. In case any irregularity is detected
subsequent to the second inspection, the internal auditor (erstwhile inspector)
concerned will be held accountable and be liable for disciplinary proceedings.”

Vidyadeepam-June 2020 Page 23

Extension of Special OTS Scheme for NON-NCLT cases(Ref. SAMD/1&2/2020-21
dated 30.04.2020)

Gist of Circular: Bank has extended the Special OTS Scheme upto Rs. 25 Cr. till 31st
March, 2021.

HIGHLIGHT OF MAJOR MODIFICATION:

Asset Classification Revised Reference Date

Substandard Asset 30.09.2019

DA1 & DA2 31.03.2020

DA3 & Loss 31.03.2020

Outstanding Amount Delegation Power to Settle

Upto Rs. 10 Lakhs Branch Head

Above Rs. 10 Lakhs upto Rs. 3 Cr RLCC

Above Rs. 3 Cr upto Rs. Rs. 25 Cr HLCC(GM)

Extension of payment of OTS amount due for payments between 1st March 2020 and
30th April 2020 sanctioned under both Recovery Policy and Special OTS
Scheme(Ref.: SAMD/3/2020-21 dated 02.05.2020)

Gist of Circular: Due to COVID-19 Pandemic, the board has approved the to give
extension of 60 days for the instalments/payments due between 01/03/2020 to
30/04/2020 (Revised Due date will be 01/05/2020 to 30/06/2020) for all OTS
Sanctioned accounts which are in force without charging any interest for the
default amount during the delayed period.

Standard Operating Procedure: Red Flagging of Accounts based on Early Warning

Signals (Ref. ADV/17/2020-21 dated 08.05.2020)

Gist of Circular: Bank has issued the complete SOP for identifying any accounts as
RFA on the basis of EWS and all the details are elaborated in the aforementioned
circular.

Vidyadeepam-June 2020 Page 24

COVID 19 Regulatory Package –Review of Resolution Timelines under the prudential
Framework on Resolution of Stressed Assets(Ref. SAMD/5/2020-21 dated 03.06.2020)

Gist of Circular: As per RBI Circular no. RBI/2019-20/245 dated 23.05.2020 issued as
part of COVID 19 Regulatory Package, following modification has been done in its
previous circular no. RBI/208-19/203 dated 07.06.2019(Our Bank Circular ref.:
Master/47/209-20 dated 09.10.2019) wherein guidelines pertaining to “ Prudential
Framework on Resolution of Stressed Assets “ were elaborated.

1. In respect of accounts which were within the review period as of March 1,

2020, the period from March 1,2020 to August 31, 2020 shall be excluded from
the calculation of the 30 days timelines for the review period. In respect of all
such accounts the residual review period shall be resume from September 1,
2020 upon expiry of which the lenders shall have the usual 180 days for
resolution.

2. In respect of accounts where the Review Period was over, but 180 days
resolution period had not expired as on March 1, 2020, the timeline for
resolution shall get extended by 180 days from the date on which the 180
days period originally set to expire.

3. The requirement of making additional provisions specified in Paragraph 17 of

RBI circular dated 07.06.2019 shall be triggered as and when the extended
resolution period as stated above expires.

Mandatory Daily Checks & Scrutiny of Reports (Ref. Misc/19/2020-21 dated

05/06/2020)

Gist of Circular: Reports are vital tools in Internal Control System and aid for action
towards preventive vigilance mechanism. The generated reports when checked
and scrutinized, act as Critical Key Important Trigger(KIT) for timely detection of
irregularities, fraudulent posting by staffs, violations, anomalies and subsequent
initiation of necessary steps, safeguarding the interest of bank and prevent
sabotages.

Following reports that are mandatorily to be generated and scrutinized by

branches.

A. DAILY CHECK & SCRUTINY

i. Balance Sheet
ii. Day Book
iii. TOD Report-Current A/c
iv. TOD Reports-SB A/c
v. Excess in Cash Credit(CC) A/c

Vidyadeepam-June 2020 Page 25

 vi. CC Balance Report
vii. SB,CD and P&L Supplementaries
viii. Exception Reports
B. WEEKLY CHECK & SCRUTINY
i. Suspense Reports
ii. FETS Reports
C. MONTHLY CHECK & SCURITNY
i. Profit & Loss Statement
ii. Profit & Loss-Comparison Reports
iii. Statement of Charges
iv. LC Expiry Report
v. LG Expiry Report
vi. Export Credit O/s Balance
vii. Sundry Creditor Statement
viii. Pegging Failure Report
ix. Income Leakage-Collection of Charges
MANDATORY SCRUTINY AND SUBMISSION OF RETURNS TO CONTROLLING OFFICE:

1. CAF-A/CAF-50
2. Locker Rent Arrear Statement
3. CSS
4. ERI-Adv Report
5. AR-15
6. AR-9
7. Excess Report(CA/CC)

MANDATORY MORNING CHECKS

The branch head must checks daily vouchers , GL, CC Balance,CASH CREDIT
Account Excess Report, TOD in SB/CD reports, daily.

Standard Operating Procedure(SOP) for ARMBs(Ref. SAMD/6/2020-21 dated

09.06.2020)

Gist of Circular: Bank has issued comprehensive SOP for ARMS vide aforementioned
circular.

Policy for Empanelment of Insolvency Professional with our Bank(Ref.

MASTER/01/2020-21 DATED 16.06.2020)

Gist of Circular: Bank has issued policy guidelines for empanelment of Insolvency
Profession vide aforementioned circular.

Vidyadeepam-June 2020 Page 26

CAF RETURNS: A TOOL FOR INTERNAL CONTROLS(Ref.: MISC/27/2020-21 dated
29.06.2020)

Gist of Circular: By effective implementation of proper systems & procedures,

Internal Controls etc, Bank can overcome/prevent many frauds. One such a tool in
Internal Control Process is “ CAF RETURNS”. Scrutiny/Examination of CAF returns is an
essential process for a healthy credit portfolio of the respective regions. The CAF
returns should be submitted on or before 7th of Succeeding month by the branches.
On receipt of CAF returns, the same shall be reviewed and scrutinized by Regional
Office and the short comings/observations shall be communicated to the
respective branches for rectification and submitting the compliance.

A. Branches to Submit to Regional Office

Returns Purpose
CAF 1 All Loans sanctions, Enhancements, Renewals under branch
discretion during the month are to be reported to RO
CAF 3 Temporary Overdraft Sanctions/Allowed
CAF 4 Cheque Purchase
CAF 10 LG Issued
CAF 11 LC Established
CAFXS Excess Allowed
CAF 50 Agriculture Advance Sanctioned during the month under
Branch Discretion are to be reported.

B. Regional Office to Submit to Credit Monitoring Department, CO

Report Purpose
CAF 1A All loans sanctions, Enhancements, Renewals under RM/RLCC
discretion during the month are to be reported to CO

 The above returns should be sent along with the details of the sanctions and
office notes.
 Circular Reference:
a. CSSD Circular No. ADV/405/2005-06 dated 08.07.2005
b. LRM circular no. ADV/234/2018-19 dated 20.04.2018
c. Credit Monitoring Circular No. Misc/496/2018-19 dated 18.01.2019.

 CAF returns can be generated through the menu “HCAFP” in Finacle.

 Audit Committee of Executives(ACE) directed that CAF shall be a permanent
agenda in Regional Audit Committee of Executives(RACE) meeting, which
held every month. Further CAF compliances are to be submitted to Credit
Monitoring Department, CO.

Vidyadeepam-June 2020 Page 27

  B: CIRCULAR CORNER-CREDIT

Compiled by: Shri Bikas Kumar Sah

Chief Manager (Faculty), Staff College

Heading of Circular: Addendum in Credit Card Limits for Staff Members

(Ref. ADV/69/2020-21 dated 12.08.2020)

Gist of Circular: Bank had issued a Master Circular on International Credit Card
Scheme vide circular no. Master/37/2019-20 dated 29.07.2019, wherein Credit Card
Limit to Staff Members were advised in Page No. 7 is corrected as follows:
Limits for Staff Members
Cadre Gross Salary per Month(Rs.) Limit(Rs.)
Sub Staff 5000- less than 8000 10000.00
8000 and above 25000.00
Clerical/JMG-I 5000-less than 8000 10000.00
8000-less than 20000 25000.00
20000-less than 25000 50000.00
25000 and above 60000.00
MM-II/MM-III 8000-less than 20000 25000.00
20000-less than 25000 50000.00
25000-less than 30000 60000.00
30000 and above 750000.00
SM IV 100000.00
AGM 150000.00
DGM 200000.00
GM 300000.00
Above GM ** 500000.00

** This is the correction done.

Heading of Circula r: New D efinition of Micro, Small and Medium Enterprises-

Clarification
(Ref. ADV/71/2020-21 dated 24.08.2020 issued by MSME & ADV/58/2020-21 dated
28.07.2020 issued by CSSD)

Gist of Circular: Government of India have changed the criteria for classifying
Micro, Small and Medium and the same has been notified vide a Gazette
Notification dated 26.06.2020. RBI has communicated the guidelines vide their
notification RBI/2020-21/10, FIDD.MSME & NFS.B.C. No. 3/06.02.31/2020-21 dated
02.07.2020 and the same have been communicated to all the branches/other
offices vide MSME department circular ADV/51/2020-21 dated 13.07.2020.
Revised Guidelines: -
Category of Enterprise Criteria for Clarification
Micro Enterprise Where the Investment in P&M or Equipment
doesn’t exceed One Crore rupees and
Turnover does not exceed Five crore
rupees

Vidyadeepam‐September 2020 Page 13

 
 

Small Enterprise Where the Investment in P&M or Equipment

doesn’t exceed Ten Crore ru pees and
Turnover does not exceed Fifty crore
rupees
Medium Enterprise Where the Investment in P&M or Equipment
doesn’t exceed Fifty Crore ru pees and
Turnover does not exceed Two Hundred
and Fifty crore rupees

All enterprises are required to register online and obtain “ Udyam Registration Certificate”.

VALIDITY OF EM PART II AND UAM ISSUED TILL JUNE 30,2020

The existing enterprise memorandum (EM) Part II and Udyog Aadhar Memorandum (UAMs)
of the MSMEs obtained till June 30,2020 shall remain valid till March 31,2021. Further, all
enterprises registered till June 30,2020, shall file new registration in the Udyam Registration
Portal well before March 31,2021.

‘Udyam Registration Certificate’ issued on self-declaration basis for enterprises exempted

from filing GSTR and / or ITR returns will be valid for the time being, upto March 31,2021.

VALUE OF PLANT AND MACHINERY OR EQUIPMENT

The online form for Udyam Registration captures depreciated cost as on 31st March each
year of the relevant previous year. Therefore, the value of Plant and Machinery or
Equipment for all purposes of the Notification No. S.O. 2119(E) dated June 26,2020 and for
all the enterprises shall mean the Written Down Value(WDV) as at the end of the Financial
Year as defined in the Income Tax Act and not cost of acquisition or original price, which
was applicable in the context of the earlier classification criteria.

Heading of Circular: Agriculture Term Loan against Jewellery Scheme (AGTAJ )

Switching over to Repo Linked Lending Rate(RLLR)
(Ref. Adv/85/2020-21 dated 08.09.2020, issued by Jewel L oan Cell, Agriculture &
Rural Initiatives)
Gist of Circular: ALCO in its meeting dated 07.09.2020, has decided to convert the
Interest Rate under Agriculture Term Loan against Jewellery Scheme (AGTAJ) from
MCLR based interest rate to RLLR based interest rate w.e.f. 10.09.2020 with the
following revised interest rate on various slabs:

Loan Amount Present Interest Rate Revised Interest Rate w.e.f.

10.09.2020

Upto Rs. 3 Lac One Year MCLR + SP 0.00% RLLR + SP 0.20% + RP 0.00%
+RP 0.00% i.e. 7.65% at i.e. 7.05% at present
present

Above Rs. 3 lac & upto Rs. 5 One Year MCLR + SP 0.20% RLLR + SP 0.40% + RP 0.45%
+ RP 0.45% i.e. 8.30% at

Vidyadeepam‐September 2020 Page 14

 
 

Lacs present i.e. 7.70% at present

Above Rs. 5 Lac & upto Rs. One year MCLR + SP 0.20% RLLR + SP 0.40% +RP 0.90%
25 Lacs + RP 0.90% i.e. 8.75% at i.e. 8.15%
present

Heading of Circular: New Scheme – Credit Guarantee Scheme for Subordinate Debt
(CGSSD) Credit Facility to Promoters of Stressed MSMEs
(Ref. ADV/53/2020-21 dated 20.07.2020, issued by MSME Department)

Gist of Circular: RBI vide notification FIDD.CO.LBS.No. 50/02.01.001/2020-21 dated

July 14, 2020 communicated the detailed guidelines of the scheme as well as FAQs
issued by MoMSME, GOI and advised the Banks to disseminate the information for
its implementation.

The scheme is valid for MSME units which are stressed viz. SMA2 and NPA accounts
as on 30.04.2020. Fraud/ Wilful defaulter accounts should not be considered under
the proposed scheme.

Promoter(s) of the MSME units shall be eligible for a credit facility equal to 15% of
his/her stake in the MSME entity (equity plus debt) or Rs. 75 Lakh whichever is lower,
as per their last audited Balance Sheet.

Trust shall provide 90% guarantee coverage for the loans sanctioned under CGSSD
scheme and concerned promoters are required to bring in the remaining 10% of
the sub-debt amount as collateral.

For details information, please refer the above mentioned circular.

Heading of Circular: Clean Loan: Roll over facility for Special Category Borrowers
(Ref. ADV/90/2020-21 dated 15.09.2020, Retail Banking Division)

Gist of Circular: Clean Loan scheme is one of the most popular schemes in recent
years and holds good scope amid present situation of pandemic caused by
COVID-19. Now, the Bank has introduced Special Category Borrowers under Clean
Loan facility and Revised Roll over facility for above category of borrowers.

Special Category Borrower: All co nfirmed salaried employees with Ce ntral

Government, State Government, Quasi Government and Public Sector
undertaking/enterprise.

On repayment of 30% of the loan amount through regular payments, fresh limit can
be considered to Special Category Borrower and the loan proceeds must be used
to pre-close the existing loan outstanding. Apart from Special Category Borrowers,

Vidyadeepam‐September 2020 Page 15

 
 

others will be eligible for Roll over of Facility, on repayment of 50% of loan amount
through regular payment. At any point borrower should not have two clean loans.

Other Conditions for Considering Roll over Facility:

1. Existing Clean Loan account to be regular

2. Fresh CIBIL report to be taken while considering above facility.
For details information, please refer the above mentioned circular

Heading of Circular: Targets for Retail Loans (Digital Mode) under EASE 3.0
(Ref. ADV/68/2020-21 dated 14.08.2020,Retail Banking Division)

Gist of Circular: EASE 3.0 has been launched by Government of India (GOI) for
smart, tech enabled banking and providing enhanced ease of banking in all
customer experiences using Digital Mode.

Digital Lending Target under EASE 3.0 for FY 2020-21

All the Regional Offices are hereby advised the Target of 40% of their Total New P-
segment loans to be sourced and sanctioned through digital mediums during FY
2020-21.

Digital Medium: Loan sourced through SMSs, Miss Call Services, Mobile Banking,
Internet Banking, Bank Website and Call Centers.

P-Segment Loans: Loans falling under Housing Loan Scheme, Vehicle Loan Scheme,
Clean Loan Schemes and Education Loan Scheme are called as P-Segment loan
under EASE guidelines.

For details information, please refer the above mentioned circular

Heading of Circular: Guaranteed Emergency Credit Line (GECL) - Modification

(ADV/65/2020-21 dated 06.08.2020, Credit Support Service Department)

Gist of Circular: Bank has advised GECL Scheme vide their circular no.
ADV/25/2020-21 dated 26.05.2020, ADV/36/2020-21 dated 08.06.2020 and
ADV/39/2020-21 dated 15.06.2020.

National Credit Guarantee Trustee Company Ltd.(NCGTC) has issued modification

in the existing scheme.

Modifications:

Eligible Borrower means all Business Enterprises/MSME institution borrower accounts

with outstanding loans of up to Rs. 50 Crores as on 29.02.2020, and annual turnover
of up to Rs. 250 Crores in FY 2019-20 in line with the increased ceiling of loan
outstanding, and the revised definition of MSMEs issued by Ministry of MSME. A
corresponding increase will be there in the maximum amount of GECL funding

Vidyadeepam‐September 2020 Page 16

 
 

under the scheme from Rs. 5 Crores at present (i.e. 20% of Rs. 25 Crores) to Rs. 10
Crores (i.e. 20% of Rs. 50 Crores).

Individual Loans given for business purposes, are now covered under the scheme
subject to the condition that such loans should fulfil the eligibility criteria prescribed
under the Scheme.

Discretion (Irrespective of Sanctioning Authority of Existing Credit Facility): Branch

head up to 25% of their respective delegated powers, under per borrower limit or
20% of the total outstanding of the loan whichever is lower.

Account below Hurdle Rate: As the emergency credit line, RLCC can consider the
limit under their discretion for below Hurdle Rated accounts.

For details information, please refer the above mentioned circular.

Heading of Circular: Guaranteed Emergency Credit Line (GECL)-Clarification

(ADV/82/2020-21 dated 05.09.2020, issued by Credit Support Service Dept.)

Gist of Circular: Based on the FAQ issued by NCGTC, Bank clarify the following

Sanctioning of GECL loan to HUF account (Business Purpose) is permitted as a

special case. However, firms in which HUF is a partner shall not be sanctioned loan
under GECL. Further, no other fresh facility/enhancement can be sanctioned to
HUFs as per our Loan Policy Document-2020.

Heading of Circular: Housing Loan Campaign – “Rise and Shine” 07.09.2020 to

31.12.2020
(ADV/83/2020-21 dated 07.09.2020, issued by Retail Banking Division)

Gist of Circular: In FY 2019-20, Bank has launched various campaign to boost the
Housing loan. The campaign resulted in 21.53% growth in housing loan portfolio
during the year 2019-20.

To give further stimulus to ROs/Branches for increasing the housing loan sanctions,
Bank has proposed to launch a housing loan campaign for all housing loan
products from 07.09.2020 to 31.12.2020. Special focus may be given for sanctioning
loans under PMAY.

Heading of Circula r: Housing Loan: Clarification on Arrival of Loa n Quantum in

Takeover of Home Loans
(ADV/60/2020-21 dated 03.08.2020, issued by Retail Banking Department)

Gist of Circular: Arrival of Quantum of Housing Loan in case of Takeover: Guidelines

for assessing loan quantum while taking over of Housing Loans, irrespective of New
House/Flat or Old House/Flat, to be the lowest of the following subject to
compliance of LTV norms:

Vidyadeepam‐September 2020 Page 17

 
 

1. Outstanding /Drawing Power (whichever is lower) with the other bank at the
time of takeover.
And

2. Current Fair Market Value (FMV) as per the latest valuation report, complying
with LTV norms.
Heading of Circular: Loan Policy Document 2020 & Operational Guidelines on
Lending
(ADV/55/2020-21 dated 22.07.2020, Credit Support Service Department)

Gist of Circular: Bank has released New Loan Policy Guidelines vide above circular.

Heading of Circular: Renewal of MOU with Bhartiya Yuva Shakti Trust(BYST)

(ADV/94/2020-21 dated 19.09.2020, issued by MSME)

Gist of Circular: Initially Bank has entered into a MoU on 03.01.2014 with Bhartiya
Yuva Shakti Trust(BYST) on a pilot basis for a period of one year and further renewed
with validity upto 02.01.2017. Lastly the MoU was renewed for three years with
validity from 02.01.2017 to 01.01.2020. Now, Bank has renewed the MoU for further
period of Three Years and valid from 03.01.2020 to 02.01.2023.

Heading of Circular: Waiver of Processing Charges for Housing Loan Schemes &
Pushpaka Loan during festive season 2020-21
(ADV/73/2020-21 dated 26.08.2020, issued by Retail Banking Division)

Gist of Circular: PERIOD OF WAIVER AND COVERAGE-

 Type of Waiver: 100% waiver of Processing Charge

 Period : 27.08.2020 to 15.02.2021
 Eligibility : Housing/Pushpaka Loans sanctioned & disturbed above
period.
 Scheme Covered: Home Loan schemes includes Subhagruha-Housing Loans,
Home Improvement Loans, Home Décor Loans, Subhagruha Top Up Loans,
Gen-Next, Subhagruha-CC, IOB Gharonda-PMAY Schemes and NRI Home
Loans. Under Pushpaka-Both Four wheeler & two wheeler loans are eligible.

XXXXXXXXXXXXXXXXX

Vidyadeepam‐September 2020 Page 18

 
  B: CIRCULAR CORNER-FOREX

Compiled by: RANJAY KUMAR JHA

Chief Manager(Faculty), Staff College

Heading of Circular: Advance Payment for Imports-Relaxations on Obtention of

Credit Report on Overseas Supplier & Prior Approval from Regional Office
(Ref. FX/01/2020-21 dated 10th August,2020, Issued by Treasury)

Gist of Circular: Branches have to obtain satisfactory credit reports on the overseas
supplier and prior permission from the respective Regional Offices at the time of
making Advance Payment for Imports on behalf of Import Customers as per the
extant guidelines of our Bank in terms of circular FX/12/2017-18 dated 07.08.2017.

In view of the practical difficulties expressed by the branches in getting the credit
reports on overseas suppliers and prior permission from the respective Regional
Offices in respect of advance remittance for Import and to bring in uniformity, Bank
has decided to give certain relaxations in this regard.

The revised guidelines will come into effect immediately i.e. from the date of this
circular (10.08.2020).

Branch need not insist upon satisfactory credit report and also need not seek prior
permission from their respective Regional Offices for effecting Advance
Remittances up to USD 50,000 or its equivalent.

Branch can consider the above waiver after satisfying the following conditions:

 The track record of the Importer and Bonafide of the transaction are
satisfactory.
 There is no default by the Importer in Submitting Bill of Entry in respect of the
past import transaction.
 The proposed transaction is genuine and is in normal course of business.
 Remittance is made strictly in accordance with the terms of the contract.
 Proper KYC/Due Diligence Checks on both the Importer/ Indian Party and
Overseas Supplier/Seller has to be carried out, particularly for new customers
and customers with new IE code, more care has to be taken while processing
the transactions.
 Waiver of Credit Report up to USD 50,000 or equivalent is only optional.
 Cumulative Amount per Proforma Invoice should not exceed USD 50,000 or
equivalent.

Heading of Circular: Tax Collected at Source (TCS) on Remittances under

Liberalised Remittance Scheme (LRS) and on Sale of Gold and other Goods
(Ref. Transient Series Circular No. 17 File 7(d) of 2020-21 dated 30.09.2020)

Gist of Circular: Finance Act 2020 has widened the scope of section 206C of the
Income Tax Act,1961 by introducing Tax Collected at Source(TCS) on remittance
Vidyadeepam‐September 2020 Page 19

 
 

made under Liberalised Remittance Scheme (LRS) of Reserve Bank of India under
sub section (1G) and Sale of Goods (1H) w.e.f. 01.10.2020.
Section Description TCS Rate
Available PAN/Aadhar not
available
206C(1G) LRS Remittance out of India 5% 10%
206C(1G) LRS Remittance out of Education 0.5% 5%
Loan
206C(1H) Sale of Gold and other goods up to 0.075% 1%
31.03.2021
206C(1H) Sale of Gold and other goods w.e.f. 0.1% 1%
01.04.2021

The provisions of sub-section (1G) and (1H) under section 206C shall not be
applicable if the buyer (remitter) falls under any of the below mentioned
categories:

 The Central Government, a State Government, an Embassy, a High

Commission, Legation, Commission, Consulate and the trade representation
of a foreign state.
 A local authority as defined in the Explanation to Clause (20) of section 10 of
the Income Tax Act 1961.
 Any other person as the Central Government may, by notification in the
official gazette, specify for this purpose, subject to such conditions as may be
specified therein.
 A person importing goods into India which is applicable only for TCS on sale
of goods under Section 206C(1H) of the act.
Further, TCS shall not apply, if the buyer(Remitter) deduct tax at source under any
other provision of the act on the goods purchased by him from the seller.

 TCS on Liberalised Remittance Scheme-Remittance out of India

 When the Bank receives an amount for remittance out of India under
LRS of RBI from a remitter, the Bank is required to collect TCS at the rate
of 5% on the aggregate remittance amount exceeding Rs. 7 lacs
during a Financial Year.
 The following transactions are considered as remittance under LRS and
provisions of TCS will be applicable on them like any other remittance
under LRS:
a) Withdrawal of Cash at ATMs abroad, using International Debit
Card(IDC)/POS/E-Commerce Transactions using IDC/Domestic ATM
Card involving Foreign Currency.
b) FTC issue (loading) and re-loading.
For further details, please be guided by aforementioned circular.

Vidyadeepam‐September 2020 Page 20

 
 

Heading of Circula r: Temporary Discretion to RLCCs for Extension of Maximum

Permissible Period of Pre Shipment and Post Shipment Export Credit Sanctioned from
1 Year to 15 Months, for disbursements made upto 31.07.2020 on a case to case
basis irrespective of the Sanctioning Authority
(ADV/70/2020-21 dated 19.08.2020, issued by Credit Support Service Department)

Gist of Circular: Due to Covid-19 pandemic, RBI has permitted to increase the
maximum permissible period of pre-shipment and post-shipment export credit
sanctioned by banks from one year to fifteen months, for disbursement made up to
July 31,2020.

Competent Authority has permitted RLCC, the discretion for extension of maximum
permissible period of pre shipment and post shipment export credit sanctioned from
1 year to 15 months, for disbursements made up to 31.07.2020 on a case to case
basis irrespective of the sanctioning authority strictly as per the directives of RBI
notification 73/04.02.002/2019-20 dated 23.05.2020.

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Vidyadeepam‐September 2020 Page 21

 
 
B: CIRCULAR CORNER-RECOVERY

Compiled by: Shri Padamjeet Dahiya

Senior Manager (Faculty), Staff College

Heading of Circular: Reporting to CRILC

(Ref. adv/80/2020-21 dated 01.09.2020)

Gist of Circular: All large borrowal accounts of R s.5.00 crore and ab ove are to be
reported to CRILC. While reporting branches has to ensure accurate master
creation, limit attachment, DP and ROI entry etc as per term and conditions. Any
mistakes committed on these parameters may results in account becoming
overdue and thus wrong reporting, thereby effecting the credit rating of the
borrowers concerned. These mistakes by branches will be viewed seriously and
staff accountability will be fix ed on erring officials. So all b ranches should ensure
correctness of data and in case mista ke is committed it should be rectified
immediately by taking up with Central office.

Heading of Circular: Action Plan for recovery in 2020-21

(Ref. SAMD/8/2020-21 dated 15.07.2020)

Gist of Circular: In order to achi eve recovery target, the following major action point h as
been proposed for the FY 2020-21
A) More focus on compromise settlement with emphasis on 10% upfront on submission
of OTS proposal
B) Special OTS scheme of below Rs3.00 crore and Rs.3 to 25 crore will be the focus area
C) Mega E Auctions from August 2020
D) Portfolio sale of MSME advances to ARC
E) Upgradations of account slipped during FY 2019-20
F) Implementation of Resolution plan of Non NCLT accounts
G) Quick resolution of NCLT admitted accounts

Branch/Regional offices are advised to take whatever possible steps for

recovery in NPA accounts which may suit to local conditions.

Heading of Circular: Extension of existing OTS/OCS sanctioned by

MCB/CAC/HLCC-ED/HLCC-GM/RLCC
(Ref. SAMD/12/2020-21 dated 5.09.2020)

Gist of Circular: Taking into account the continuing severity of COVID-19 pandemic,
Board has approved additional sanction/permission as a one-time measure which
allows Respecting sanctioning authority viz. MCB/CAC/HLCC-ED & HLCC-GM/RLCC
to sanction such extension without charging any interest for the period from
01.03.2020 to 31.08.2020 with a condition that overall OTS period should not extend
beyond 15.03.2021 subject to following term and conditions:

a) Borrower should have paid at least upfront amount of 1 0% of OTS amount

Vidyadeepam‐September 2020 Page 22

 
 

b) As per sanction the due dates of installments of OTS falling due during March
2020 onwards.
c) The OTS sanction should be in force /live as on 01.03.2020.
d) The due date of such extension should not be beyond 15.03.2021.
e) For extension beyond 31.08.2020 will attract normal interest at 1 y e a r MCLR
+1 % from 01 .09.2020
f) This special permission is valid up to 31.12.2020 as a one-time measure due to
COVID-19 Pandemic.
g) This one-time measure f o r extension shoul d b e p e r m i s s i b l e to existing
OTS sanction only and it should not be applicable to fresh OTS.
 
 

Heading of Circular: Modifications in arriving minimum acceptable amount under

special OTS scheme for non NCLT account for unsecured portion in case of doubtful
and loss assets
(Ref. SAMD/10/2020-21 and SAMD/11/2020-21 dated 04.09.2020)

Gist of Circular: the modifications made in the Special OTS scheme which are tailor
made to fit into the requirements at the field level functionaries in making the Scheme
handier and attractive. Following are the changes made into doubtful and loss category
leaving sub-standard category unchanged:

Nature of Loan Category revised

AGRI Loan sanctioned DA1 & DA2 Assets Minimum 40% of Net book
up to Rs. 10.00 lac within as on 31.03.2020 outstanding as on 31.03.2020
branch power with or less recovery made after
without security. 31.0.02020
DA3 & loss Assets Minimum 30% of Net book
as on 31.03.2020 outstanding as on 31.03.2020
less recovery made after
31.0.02020

Other NPA accounts with DA1 & DA2 Assets Minimum 60% of secured
Net Book Outstanding as on 31.03.2020 portion + 40% of unsecured
up to Rs.10.00 lacs under portion of net book
branch powers outstanding as on 31.03.2020
less recovery made after
30.03.2020

DA3 & loss Assets Minimum 30% of Net book

as on 31.03.2020 outstanding as on 31.03.2020
less recovery made after
31.0.02020

Vidyadeepam‐September 2020 Page 23

 
 

NPAs above Rs.1crore and DA1 & DA2 Assets as on Minimum of 75% of secured
up to Rs.3 crore under RLCC 31.03.2020 portion plus 40% of
powers unsecured portion of of Net
book outstanding as on
31.03.2020 less recovery
made after 31.0.02020

DA3 & lo ss Assets as on Minimum of 60% of secured

31.03.2020 portion plus 30% of
unsecured portion of Net
book outstanding as on
31.03.2020 less recovery
made after 31.0.02020

NPA accounts with net book DA1 & DA2 Assets as on Minimum of 75% of secured
outstanding above Rs.3 31.03.2020 portion plus 40% of
crore and up to Rs.25 crore unsecured portion of of Net
book outstanding as on
31.03.2020 less recovery
made after 31.0.02020

DA3 & lo ss Assets as on Minimum of 60% of secured

portion plus 30% of
31.03.2020
unsecured portion of Net
book outstanding as on
31.03.2020 less recovery
made after 31.0.02020

*For sub-standard category there is no change.

*For doubtful and loss asset category for NPAs above Rs.10.00lacs and
up to Rs. 1 crore under RLCC power also there is no change.

Vidyadeepam‐September 2020 Page 24

 
 

Heading of Circular: Resolution framework for COVID-19 related stress

Gist of Circular: The Economic fallout on account of COVID-19 pandemic has led to
significant financial stress for borrowers across th e board. The resultant stress would
have resulted in ad verse impact on some borrowers viz. loss of job , reduction in
salary, loss in business etc otherwise having good track record. So circulars have
been issued guiding all the branches/other offices about resolution framework for
covid-19 related stress. Please be guided by following circulars:

1)ADV/78/2020-21 dated 01.09.2020 issued by CSSD

2)ADV/81/2020-21 dated 05.09.2020 ISSUED BY CSSD

3)ADV/88/2020-21 dated 11.09.2020 issued by CSSD

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Vidyadeepam‐September 2020 Page 25

 
  B: CIRCULAR CORNER-DIGITAL BANKING

Compiled by: Shri Jeetendra Kumar Panda

Senior Manager-Faculty, Staff College

Heading of Circular: Information Security-Education Series- Phishing emails and

attachments.
(Ref. ITEC/10/2020-21 dated 03.07.2020)

Gist of Circular:
E-mail attachments are common way of sending documents, however they are
also a common source of viruses. Here the attacker sends email with attachments
which is sufficiently convincing and once the attachment is downloaded then the
malicious software takes control of user system by destroying the data and stealing
information. This process is called Phishing.

Guidelines for Phishing:

1. Never respond to emails coming from unverified sources claiming to be
genuine entities.
2. Don’t ever click the embedded links in the messages without hovering mouse
over them first to check the URL.
3. If you receive unsolicited email, don’t click to unsubscribe to the list as it could
contain malware or lead to a website that is infected with malware. Simply delete
the unsolicited mail or if it is ended up in your spam folder, clear the folder together.
4. Upon receiving any suspicious email, staff members to send the suspicious email as
attachment to [email protected] without any delay.

Heading of Circular: Education Series- FAKESPY Malware.

(Ref. ITEC/11/2020-21 dated 10.07.2020)

Gist of Circular:
A newly discovered variant of android malware dubbed “FAKE SPY” is reported to
be active in cyberspace.

The attacker sends luring messages to the victim with a malicious link, and that
malicious link redirects to a malicious web page which prompts the victim to
download an android application package (APK). Once installed the FAKE SPY asks
for change in default SMS app and Ignore battery optimisation, and then it works
when the screen is off by sending the copy of messages to the C2 server.

Precautions:

1. Always install android apps from a known and trusted source and disable the option
of installing apps from unknown sources.

2. It is recommended to install reputed multi layered anti-malware solution updated

with latest signatures in all android devices.

Vidyadeepam‐September 2020 Page 26

 
 

3. Android operating system and other apps should be kept up-to-date regularly with
latest version which hinders the cyber criminals to gain access than the outdated
applications and software.

Heading of Circular: Password is not passing words – Protect your password.

(Ref. ITEC/12/2020-21 dated 15.07.2020)

Gist of Circular:
Our Board approved password policy and e-mail communications best practices
are available in our intranet site “IOB Online -> CO Department -> Information
Security Department.

Points to remember:

1. Branch/ office/ department mail ids control is vested with branch heads
headed by up to Scale 3 and by the second line functionary if headed by
scale 4 and above.
2. Regional Office departmental mail ids are to be controlled by concerned
department head, however the common mail id of regional office is to be
controlled by planning department head or officer nominated by Regional
manager
3. In Central Office, the departments are provided with separate email ids and
the control of the mail ids are given to the respective department’s chief
managers or the officer in charge of the respective desk.
4. Passwords of generic mail ids are to be kept in a sealed cover under dual
safe custody. In the event of non-availability of authorised user if the mail has
to be used then the envelop can be opened after recording the same in the
register with date and time. The new user should change the password in first
use and keep the same in dual custody. When the initial authorised user
reports back, the envelope can be opened after due recording and
password changed and stored as started.
5. Whether generic e-mail or unique e-mail ids are used, it is mandatory that the
name and designation of the user must be stated in the e-mail
communication.
Heading of Circular: Information Security-Education Series- Beware of Vishing
(Fraudulent phone calls)
(Ref. ITEC/14/2020-21 dated 31.08.2020)

Gist of Circular:
Vishing (also called voice phishing) is a form of phishing attack in which the
attacker calls a bank customer, claims to represent the bank and lures the victim to
provide personal banking details like customer id, password, Credit card number,

Vidyadeepam‐September 2020 Page 27

 
 

ATM Pin, OTP, CVV or other sensitive information by creating a sense of urgency in
the victim’s mind.

Heading of Circular: IOB Pay- Online Payment System

(Ref. ITEC/15/2020-21 dated 09.09.2020)

Gist of Circular:
IOB Pay is on integrated online payment system which offers fee payments.
merchant payments, donations for charitable institutions etc. lt is on easy and
effective way of collecting payments by the merchants.

The circular covers the following information:

1. IOB Pay Features and Prerequisite
2. Target Groups
3. Type of Integrations with institutions
4. Payment Modes and Transaction Charges
5. Documentation
6. Transactions Reports and Settlement of Transactions

Heading of Circular: Information Security-Education Series- Safeguarding Identity i n

Facebook
(Ref. ITEC/16/2020-21 dated 16.09.2020)

In recent times it has been observed that people are creating genuine looking fake
profile similar to someone’s profile and demanding money through various wallets
like google pay and phone pay etc. The modus of operandi used by the cheater is
as below:
1. Creating genuine looking similar profile of some senior officials.
2. Sending add request to all his/her friends
3. Once user accepts the request the cheater starts chatting on Facebook
messenger with the friend and request for money by showing urgency like
payment to hospital dues, payment to someone else for his help etc.
To guide the staff members and create awareness among staffs FAQ has been
enclosed in the above mentioned circular.

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Vidyadeepam‐September 2020 Page 28

 
 
B: CIRCULAR CORNER-MISC.

Compiled by: N Rajasekar, Chief Manager, Staff College

Heading of Circular: Whistle Blower System-SOP for internal Reporting by Staff

(Ref. Misc/51/2020-21 dated 09.09.2020, Inspection Dept)

Gist of Circular: Our Staff, as a whistle blower is facilitated to report on any incident,
wrong doings, misuse corruption, suspected fraud etc., any such matter affecting
bank image or suspected to induce likely financial loss, detrimental to the interest of
bank. Staff can s u b m i t the whistle blower c o m p l a i n t on various modes viz.,
by Written complaint, by Online, by Email and by Telephone. The Whistle Blower
shall not cover and entertain staff related personal grievances on HR matters.

Heading of Circular: Risk Based Internal Virtual Audit (Riva) - Inspection Directive
Cum SOP

(Ref. Misc/60/2020-21 dated 18.09.2020, Inspection Dept)

Gist of Circular: The main objective of the virtual audit is to induce higher
coordination levels among Inspection, Compliance, credit monitoring, Vigilance,
Technology, Digital and security suctions at controlling office, towards efficient role
control effectiveness and prevention of frauds. This system is called as RIVA (Risk
Based Internal Virtual Audit). RIVA is formulated with a basic aim to Create a sense
in the functional area that monitoring is in place, to create a deterrence in the
system against perpetration of Frauds, to induce effectiveness, to improve Co-
ordination and sustain compliance levels to the Internal Control System, to ensure
that the RIYA system is practical and goal oriented.

Heading of Circular: Clarifications In Service Charges

(Ref. Misc/29/2020-21 dated 10.07.2020, Banking Operation Dept)

Gist of Circular: Mortgage Charges is applicable only where Land and Building is
taken as prime security (MCC accounts) irrespective of loan amount. Mortgage

Vidyadeepam‐September 2020 Page 29

 
 

charges are not applicable for Housing loans/ Subhagruha Loans, Agricultural
advances, land and building taken as collateral security, all priority sector
advances, in case of enhancement, charges will be applicable for enhanced limit
only.

Heading of Circular: Clarifications In Service Charges

(Ref. Misc/48/2020-21 dated 02.09.2020, Banking Operation Dept)

Gist of Circular: Consequent to the closure of Zonal Offices, the discretionary

power of the General Manager ZO will be vested with General Manager,
BOD, Central Office in this regard.

The revised d i s c r e t i o n for waiver/concession in service c h a r g e s other

t h a n charges related to advances (only on case to case basis) is furnished
below

S.NO. AUTHORITY WAIVER IN PERCENTAGE

1 MD AND CEO Full
2 Executive Director 75%
3 General Manager CO (BOD) 25%
4 Chief Regional Manager 10%
5 Senior Regional Manager 10%

Heading of Circular: Concurrent Audit System (Assignment from 01.07.2020)

(Ref. Misc/42/2020-21 dated 06.08.2020, Inspection Dept)

Gist of Circular: The broad areas of coverage under the concurrent audit system
shall be based on the identified risk. The branch coverage shall be 50% of deposits
and 60% of advances. The Concurrent Audit will cover & report on all areas of
branch operations including Cash, KYC/AML, Credit Monitoring, NPA follow up,
Internal Control system, periodical report submission (MIS) etc., The various activities
of branches shall be checked concurrently and the findings shared with the
auditee for redressal / rectification and this would reduce the audit findings
remaining rectification / redressal and shall be reported through monthly reports.

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Heading of Circular: New COVID Cover - Universal Sompo General Insurance -

Corona Kovach & Corona Rakshak Policy

(Ref. Misc/33/2020-21 dated 20.07.2020, Marketing and Development Dept)

Gist of Circular: Our Bankassurance channel partner M/s Universal Sompo

General Insurance has come out with the two products for our customers.

"CORONA KAVACH" –A standard indemnity plan which will cover the cost of
treatment for COVID. Customers can take the policies either for 3.5 months, 6.5
months or 9.5 months.

"CORONA RAKSHAK" - An optional plan which offers a lump sum benefit up to

the policy amount on positive diagnosis of Covid-19, i.e., the Lump sum benefit
will be paid to the policy h o l d e r .

Heading of Circular: Submission of CTR to FIU-IND under PMLA 2002

(Ref. Misc/50/2020-21 dated 07.09.2020, AML Cell)

Gist of Circular: As per PMLA 2002, Bank is required to furnish the following to FIU-IND.
All cash transactions of value more than 10 Lacs or its equivalent in foreign
currency. All series of cash transaction integrally connected to each other which
have been individually valued below Rs.10 Lacs or its equivalent in foreign currency
where such series of transactions taken place within a month and the monthly
aggregate exceeds limit of Rs.10 Lacs or its equivalent in foreign currency. PAN of
the customer shall be obtained and verified while undertaking transactions.

Heading of Circular: Detection and Impounding of Counterfeit Notes

(Ref. Transient series circular No: 11 file 7(D) of 2020-21 dated 06.07.2020, Currency
Administration Dept)

Gist of Circular: Detection and Impounding of Counterfeit Notes

Vidyadeepam‐September 2020 Page 31

 
 

Para 1- Authority to Impound Counterfeit Notes-The Counterfeit Notes can be

impounded by All Banks, All Treasuries and Sub-Treasuries, Issue Offices of Reserve
Bank of India.

Para 2 - Detection of Counterfeit Notes

Para 3 - Impounding of Counterfeit Notes

Para 4 - Issue of Receipt to Tenderer

Para 5 - Detection of Counterfeit Notes - Reporting to Police and other bodies

Para 6 - Examination of the Banknotes before Issuing over Counters, Feeding ATMs
and Remitting to Issue Offices of the RBI

Para 7 - Designating Nodal Bank Officer

Para 8 - Establishment of Forged Notes Vigilance Cell at Head Office of Bank

Para 9 - Provision of Ultra-Violet Lamp and Other Infrastructure

Para 10 - Reporting of Data to RBI / NCRB / FIU-IND

Para 11- Preservation of Counterfeit Notes Received from Police Authorities

Para 12 - Detection of Counterfeit Notes - Training of Staff

Heading of Circular: E-KYC - Accounts opened using OTP based E-KYC

authentication facility

(Ref. Misc/47/2020-21 dated 27.08.2020, KYC Cell)

Gist of Circular: When branches open the OTP based e-KYC in, non-face-to-face
mode for the customers who desire to open accounts without visiting the
branches/offices of the bank or meeting any officials of Banks, the, guidelines, spelt
out in KYC Policy should be strictly adhered to. KYC norms is not only the important
regulatory prescription of RBI, it has national as well as international importance in
so far as curbing money laundering and terrorist financing. Banks play pivotal role in
this regards as banking channels are the most vulnerable and are targeted by
unscrupulous elements. Staff members are expected to understand the
guidelines properly and adhere to them without any let up.

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Heading of Circular: Master Circular – Facility for Exchange of Notes and Coins

(Ref. Transient series circular No: 12 file 7(D) of 2020-21 dated 06.07.2020, Currency
Administration Dept)

Gist of Circular: All branches of banks in all parts of the country are mandated to
provide the following customer services, more actively and vigorously to the
members of public so that there is no need for them to approach the RBI Regional
Offices for this purpose.

1. Facility for exchange of notes and coins at bank branches.

2. Reserve Bank of India (Note Refund) Rules, 2009 [As amended by Reserve Bank of
India (Note Refund) Amendment Rules, 2018] - Delegation of powers
3. Liberalized definition of a Soiled Note
4. Mutilated Notes – Presentation and Passing
5. Extremely brittle, burnt, charred, stuck up Notes
6. Procedure for exchange of soiled/mutilated/imperfect notes
7. Notes bearing "PAY" / "PAID" / "REJECT" stamps
8. Notes with slogans/ scribbling/ stain etc
9. Deliberately cut notes
10. Training
11. Display of Notice Board
12. Disposal of notes adjudicated at bank branches
13. Uncurrent Coins
14. Monitoring and Control

Heading of Circular: Special Report-Issuance and Closure-SOP in eTHIC

(Ref. Misc/49/2020-21 dated 03.09.2020, Inspection Dept)

Gist of Circular: eTHIC software is automated for recording processing of special

reports. The process will enable all units to ascertain status of Special Report for
effective control. The screen shot of work flow is uploaded in IOBONLINE (CO
Dept>> Inspection>> Standard Operating Procedure >> Special Report screen
shot). It can be accessed and incorporated by using CHRIS password only. In case

Vidyadeepam‐September 2020 Page 33

 
 

clarification required, you may contact Mr. Tulasidas Varma, Manager at 044
28519664.

Heading of Circular: Introduction of lnsta Demat Account partnering with NSDL

(Ref. Misc/44/2020-21 dated 10.08.2020, Merchant Banking Dept)

Gist of Circular: Bank has launched lnsta Demat Account for internet bank
customers. NSDL is partnering with our Bank to give this facility to our existing
customers on real time basis using API I Technical integration with them. Involving
zero paperwork, customers of our Bank can login through net banking application
and open hassle-free online lnsta-Demat accounts without submitting documents.
Key features are Instant activation of Demat account with lOB through NSDL,
Demat accounts opened in few minutes, End to end digital journey for client on
boarding, paperless, No need to visit a branch, Available 24x7, including holidays.

Heading of Circular: lOB CD Campaign- 'PRASTHUTHI'

(Ref. Dep/11/2020-21 dated 14.09.2020, Planning Dept)

Gist of Circular: In order to achieve the budgeted target up to September 2020, lOB
CD Campaign PRASTHUTHI has been launched from 15.09.2020 to 15.11.2020. Bank
has already fixed targets for opening of current accounts for the FY 2020-21. Metro
Branches to open 10 accounts, Urban Branches to open 8 accounts and Semi
Urban Branches to open 5 accounts. However, only 10877 accounts were opened
up to August 2020 for FY-20-21 by all the branches against the budgeted 1,01,448
accounts from April 2020 to Sep 2020. We expect whole hearted involvement and
vigour from all staff for the success of lOB CD Campaign PRASTHUTHI.

Heading of Circular: lOB CD Campaign- 'PRASTHUTHI'

(Ref. Misc/28/2020-21 dated 01.07.2020, KYC-AML Dept)

Gist of Circular: Due to closure of Zonal Offices, the flow of KYC Compliance
certificate from one layer to another is since modified. Submission of KYC
Compliance Certificate by various Iayers is modified as foIIows.

Vidyadeepam‐September 2020 Page 34

 
 

Certification To Periodicity
2nd line of Branch 1 Line Manager
st Every week
1st Line Manager Regional Office By 5th of succeeding month
Regional Manager KYC Cell. CO By 10th of succeeding month

Heading of Circular: Opening of Current accounts by Bank-Need for Discipline

(Ref. Adv/72/2020-21 dated 24.08.2020, Credit Support Services Dept (CSSD)

Gist of Circular: Current Accounts shall not be opened for customers who have
availed credit facilities in the form of cash credit (CC) / overdraft (OD) from the
banking system and all transactions shall be routed through the CC / OD accounts.
In case of customers who have not availed CC/OD facility from any bank, current
accounts may be opened adhering the guidelines given in this circular. Flow charts
for opening of current accounts / availing CC/OD are given in this circular.

Heading of Circular: Adherence of Paper to Follow(P2F) Instruments Process

(Ref. Misc/4/2020-21 dated 24.08.2020, Banking Operations Dept)

Gist of Circular:  With the current on-going pandemic COVID-19, P2F process Is
suspended as guided by NPCI and restoration of handling of the above will be
advised later. Payment of all State Government instruments may be processed
based on images unless they need to be returned with reason code 39 or 40(in
extreme cases only}. Physical instruments may be exchanged after restrictions are
withdrawn. In case of image quality failure, instruments may be mandatorily
rescanned to increase the possibility of successful validation of the images. The
residual instruments which need to be presented in paper shall be exchanged
across the counters of drawee banks.

Heading of Circular: Account Opening for Individuals-Obtention of PAN / Form 60

(Ref. Misc/45/2020-21 dated 20.08.2020, KYC Cell)

Gist of Circular: The following documents to be obtained while opening accounts

for individuals.
Vidyadeepam‐September 2020 Page 35

 
 

a) A certified copy of any OVD containing details of his identity and address.
b) One recent photograph.
c) PAN or form 60 as defined in income tax rule, 1962.
d) Documentary proof for Source of income / Nature of Business.
Heading of Circular: LAUNCH OF PSB ALLIANCE- DOORSTEP BANKING SERVICES

(Ref. Misc/59/2020-21 dated 14.09.2020, KYC Cell)

Gist of Circular: PSB Alliance-Doorstep Banking Services has been launched to

customers of all PSB through common platform under supervision of IBA. Two
vendors (Mis Atyati Tech. Pvt Ltd and M/s Integra Microsystems Pvt. Ltd) shall
provide end to end process/ solutions including manpower for service delivery.
These services shall be provided at 100 centres pan-India. To start with M/s Atyati
Technologies Pvt. Ltd shall provide services at 60 centres and M/s Integra
Microsystems Pvt. Ltd shall provide services at 40 centres. Doorstep Banking
Services shall be provided to all individual customers having KYC compliant Savings
Bank I Current Account with registered mobile number in CBS. Services related to
Financial and Non-Financial transactions will be provided under PSB alliance Door
step banking. Please adhere the guidelines given in the circular for effective
implementation and extension of service.

Heading of Circular: Floating Rate Savings Bonds 2020 (Taxable)Scheme

(Ref. Transient series (File 7-D) dated 30.06.2020, Govt Accounts Dept)

Gist of Circular: Subscription to bonds will be in the form of cash (up to 20,000/-)
/drafts/cheques or any electronic mode acceptable to the Receiving Office. The
Bonds will be issued only in the electronic form and held at the credit of the holder
in an account called Bond Ledger Account (BLA), opened with the Receiving
Office. The interest on the bonds will be payable at half yearly intervals on Jan 1st
and July 1st every year. There is no option to pay interest on cumulative basis.  The
coupon/interest of the bond would be reset half yearly starting with Jan 1st,
2021and thereafter every July 1st and Jan 1st. The coupon rate for first coupon

Vidyadeepam‐September 2020 Page 36

 
 

period, payable on January 1, 2021 is fixed at 7.15%.  Brokerage at the rate of 0.5%
of the amount mobilized will be paid to the Receiving Offices.

Heading of Circular: Red Flag Indicators - Behavourial Traits of Fraud Contributory

Controls For Preventive Vigilance System

(Ref. Misc/30/2020-21 dated 10.07.2020, Inspection Dept)

Gist of Circular: The Framework of spotting High Risk Fraud Situations- Fraud Triangle
[Pressure, Opportunity and Rationalization (POR)), helps us in stipulating who might
be a Fraud Risk. The International Study says people, Employees are more likely to
commit an occupational Fraud when they have motivation, opportunity and
rationale to excuse the dishonest act. The rationale is an individual factor, which
may not have alert indicator, but there are good indicators based on motivation
and opportunity.

The analysis and examination on the perpetrated Frauds reveal that the root cause
deduce to one single phenomenon. It is Failure to Know Somebody as described
below: (a) Failure to Know Customer (KYC), (b) Failure to Know Partners and
Vendors (KYP), (c) Failure to know Our Employees/ Colleagues (KYE-C). Most of
frauds have happened either we have closed our eyes and behave as if we have
not noticed anything, or Failed to understand the trigger and read the alert
indicators, Red flags, where the Red flag alert indicator is on the typical behaviour
of colleague or staff.

Heading of Circular: Revision in SB Interest Rates w.e.f. 08.09.2020

(Ref. Dep/10/2020-21 dated 07.09.2020, Planning Dept)

Gist of Circular: Interest rate applicable for SB accounts having balance above
Rs.25Lacs (linked to repo rate) will be 3.10% (i.e. Repo rate (4.00%)- 0.90% = 3.10%)
and accounts having balance of Rs.25 Lacs and below (not linked to Repo rate)
has also been revised to 3.10%.

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Heading of Circular: Revision in SB Interest Rates w.e.f. 08.09.2020

(Ref. Transient series circular No: 13(File 7-D) dated 06.07.2020, Currency
Administration Dept)

Gist of Circular: The Scheme of Penalties for bank branches including currency
chests has been formulated in order to ensure that all bank branches provide
better customer service to members of public with regard to exchange of notes
and coins, in keeping with the objectives of Clean Note Policy. Penalties will be
imposed on banks for deficiencies in exchange of notes and coins/remittances sent
to RBI/operations of currency chests etc.

Heading of Circular: Sending Letter of Thanks to Customers.

(Ref. Misc/34/2020-21 dated 20.07.2020, KYC-AML Dept)

Gist of Circular: Letter of Thanks is available in HFINRPT MENU under the caption -
'CASA Thanks giving letter to New SB Customers". System will generate letter for the
accounts opened with the branch for a given period. Branches are advised to take
print out and send the same to customers by Registered Post. Copy of the same
and proof of registration should be kept along with the account opening form for
records. Copy of the thanks giving letter are to be made available for verification
by RO/CO Inspectors and Concurrent Auditors. Branches should adhere to the
above guidelines without fail.

Vidyadeepam‐September 2020 Page 38

 
  B: CIRCULAR CORNER-RBI

Compiled by: Ranjay Kumar Jha

Chief Manager(Faculty), Staff College

Heading of Circula r: Automation of Income Recognition, Asset Classification and

Provisioning Processes in Banks
(Ref. RBI/2020-21/37, Ref. No. DoS.CO.PPG./SEC.03/11.01.005/2020-21 dated
14.09.2020)

Gist of Circular: In order to ensure the completeness and integrity of the automated
Asset Classification (classification of advances/investments as NPA/NPI and their
up-gradation), Provisioning calculation and Income Recognition processes, banks
are advised to put in place / upgrade their systems to conform to the following
guidelines latest by June 30, 2021.

Coverage:

 All borrowal accounts, including temporary overdrafts, irrespective of size,

sector or types of limits, shall be covered in the automated IT based system
(System) for asset classification, up gradation, and provisioning processes.
Banks’ investments shall also be covered under the System.

 Asset classification rules shall be configured in the System, in compliance

with the regulatory stipulations.

 Calculation of provisioning requirement shall also be System based as per

pre-set rules for various categories of assets, value of security as captured in
the System and any other regulatory stipulations issued from time to time on
provisioning requirements.

 In addition, income recognition/de-recognition in case of impaired assets

(NPAs/NPIs) shall be system driven and amount required to be reversed from
the income account should be obtained from the System without any
manual intervention.

 The System shall handle both down-grade and upgrade of accounts through
Straight Through Process (STP) without manual intervention.

Frequency:

 The System based asset classification shall be an ongoing exercise for both
down-gradation and up-gradation of accounts. Banks should ensure that the
asset classification status is updated as part of day end process. Banks should
also be able to generate classification status report at any given point of time
with actual date of classification of assets as NPAs/NPIs.

Vidyadeepam‐September 2020 Page 39

 
 

Heading of Circular: Compliance Functions in Banks and Role of Chief Compliance

Officer (CCO)
(Ref. RBI/2020-21/35, Ref. No. DoS.CO.PPG./SEC.02/11.01.005/2020-21 dated
11.09.2020)

Gist of Circular: As part of robust compliance system, banks are required, inter-alia,
to have an effective compliance culture, independent corporate compliance
function and a strong compliance risk management programme at bank and
group level. Such an independent compliance function is required to be headed
by a designated Chief Compliance Officer (CCO) selected through a suitable
process with an appropriate ‘fit and proper’ evaluation/selection criteria to
manage compliance risk effectively.

Eligibility Criteria for appointment as CCO –

Rank - The CCO shall be a senior executive of the bank, preferably in the rank of a
General Manager or an equivalent position (not below two levels from the CEO).
The CCO could also be recruited from market;

Age - Not more than 55 years;

Experience - The CCO shall have an overall experience of at least 15 years in the
banking or financial services, out of which minimum 5 years shall be in the Audit /
Finance / Compliance / Legal / Risk Management functions;

Skills - The CCO shall have good understanding of industry and risk management,
knowledge of regulations, legal framework and sensitivity to supervisors’
expectations;

Stature - The CCO shall have the ability to independently exercise judgement. He
should have the freedom and sufficient authority to interact with
regulators/supervisors directly and ensure compliance;

Others - No vigilance case or adverse observation from RBI, shall be pending

against the candidate identified for appointment as the CCO.

Tenor for app ointment of CCO - The CCO shall be appointed for a minimum fixed
tenure of not less th an 3 ye ars. The Audit Committee of the Board (ACB) / Man aging
Director (MD) & CEO should factor this requirement while appointing CCO;

Vidyadeepam‐September 2020 Page 40

 
 

Heading of Circular: Foreign Exchange Management (Export and Import of

Currency) (Amendment) Regulations, 2020
(Ref. Notification No. FEMA 6 (R )/ (2)/2020-RB , dated 11.08.2020)

Gist of Circular:
In exercise of the powers conferred by clause (ga) of sub- section (2) of Section 47
of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of
India makes the following amendments to the Foreign Exchange Management
(Export and Import of Currency) Regulations, 2015 (Notification No. FEMA 6 (R)/RB-
2015 dated December 29, 2015) (hereinafter referred to as 'the Principal
Regulations'), namely: —
1. Short title & Commencement:
(i) These Regulations may be called the Foreign Exchange Management (Export
and Import of Currency) (Amendment) Regulations, 2020.
(ii) They shall come into force from the date of their publication in the Official
Gazette.
2. Amendment to Regulation 3
In the Principal Regulations, in Regulation 3, sub- regulation 1, the portion beginning
with “Without prejudice to the provisions of sub-regulation (1)” and ending with
“currency notes of Government of India and/or of Reserve Bank of India subject to
the terms and conditions as the Bank may stipulate” shall be omitted.
3. Insertion of new Regulation 9
In the Principal Regulations, after Regulation 8, the following new regulation shall be
inserted, namely, -
“9. Reserve Bank’s power to permit export or import of currency: Notwithstanding
anything contained in these regulations, the Reserve Bank may, on an application
made to it and on being satisfied that it is necessary to do so, allow any person to
take or send out of India to any country or bring into India from any country
currency notes of Government of India and /or of Reserve Bank of India subject to
such terms and conditions as the Reserve Bank may stipulate.

Heading of Circular: Basel III Framework on Liquidity Standards-Net Stable Funding

Ratio(NSFR)
(Ref. RBI/2020-21/43. DOR.BP.BC.No.16/21.04.098/2020-21 dated 29.09.2020)

Gist of Circular:
In view of the continued uncertainty on account of COVID-19, on a review, it has
been decided to defer the implementation of NSFR guidelines by a further period of
six months. These guidelines shall now come into effect from April 1, 2021.

Heading of Circular: Basel III Capital Regulations-Review of Transitional

Arrangements
(Ref. RBI/2020-21/42, DOR.BP.BC.No 15/21.06.201/2020-21 dated 29.09.2020)

Gist of Circular:
Vidyadeepam‐September 2020 Page 41

 
 

 In view of the continuing stress on account of COVID -19, it has been

decided to defer the implementation of the last tranche of 0.625 per cent of
the Capital Conservation Buffer (CCB) from September 30, 2020 to April 1,
2021. Accordingly, the minimum capital conservation ratios in para 15.2.2 of
Part D ‘Capital Conservation Buffer Framework’ of Master Circular,
DBR.No.BP.BC.1/ 21.06.201/2015-16 dated July 1, 2015 on ‘Basel III Capital
Regulations’, shall continue to apply till the CCB attains the level of 2.5 per
cent on April 1, 2021.

 The pre-specified trigger for loss absorption through conversion / write-down

of Additional Tier 1 instruments (Perpetual Non-Convertible Preference Shares
and Perpetual Debt Instruments), shall remain at 5.5 per cent of risk weighted
assets (RWAs) and will rise to 6.125 per cent of RWAs from April 1, 2021.

Heading of Circular: Online Dispute Resolution (ODR) System for Digital Payments
(Ref.: RBI/2020-21/21, DPSS.CO.PD No. 116/02.12.004/2020-21 dated 06.08.2020)

Gist of Circular: MINIMUM REQUIREMENT OF THE ODR SYSTEM

Applicability: These requirements apply to all authorised Payment Systems

Operators (PSOs) – banks and non-banks – and their participating members
[Payment System Participants (PSPs)].

Concept of the ODR System: The ODR system should be a transparent, rule-based,
system-driven, user-friendly and unbiased mechanism for resolving customer
disputes and grievances, with zero or minimal manual intervention.

Structure of the OD R system: Each PSO shall make available an ODR system for
resolving disputes and grievances arising out of failed transactions and provide the
participating PSPs an access to the system.
The PSO and its PSPs shall provide the customers an access for lodging the disputes
and grievances relating to failed transactions, irrespective of such transactions
being on-us or off-us in nature.

Types of transactions covered under the scope of the ODR System : To begin with,
disputes and grievances relating to failed transactions shall be covered under the
ODR system. The scope, thus, includes all transaction types mentioned in the RBI
circular DPSS.CO.PD No.629/02.01.014/2019-20 dated September 20, 2019 on
“Harmonisation of Turn Around Time (TAT) and customer compensation for failed
transactions using authorised Payment Systems”.
All provisions, including those relating to TAT and compensation to customers
mentioned in the above circular need to be adhered to while resolving disputes
and grievances using the ODR system.

Vidyadeepam‐September 2020 Page 42

 
 

Lodging and tracking of disputes and grievances : Customers shall be provided with
one or more channels – web-based or paper-based complaint form, IVR, mobile
application, call centre, SMS, through branches or offices, etc. – for lodging
disputes and grievances. As mentioned above, such facility shall be provided by
the PSO as well as by the PSP (the issuer institutions with whom the customer has a
relationship) with a mechanism to link / access the ODR system put in place by the
PSO. The industry may progressively increase the variety of these channels.
In addition to the above channels, in case of mobile phone-based systems like
Unified Payments Interface (UPI), third party app providers (TPAPs) shall also provide
customers with a facility to lodge disputes and grievances through the same mobile
app used for making payments, which shall be integrated with the ODR system.
The process of lodging the dispute or grievance shall be simple and involve only
necessary minimum details. The ODR system should be made capable of
automatically fetching full details based on the information provided by the
customer. The aspect of data confidentiality shall specifically be taken care of
while designing such parameters.
Once a customer has lodged the dispute or grievance, a unique reference number
shall be allocated by the ODR system. Facility shall be provided to the customers for
tracking the status of the dispute or grievance using this reference number.

Heading of Circular: Positive Pay System for Cheque Truncation System

(Ref.: RBI/2020-21/41, DPSS.CO.RPPD.No. 309/04.07.005/2020-21 dated 25.09.2020)

Gist of Circular:
 The concept of Positive Pay involves a process of reconfirming key details of
large value cheques. Under this process, the issuer of the cheque submits
electronically, through channels like SMS, mobile app, internet banking, ATM,
etc., certain minimum details of that cheque (like date, name of the
beneficiary / payee, amount, etc.) to the drawee bank, details of which are
cross checked with the presented cheque by CTS. Any discrepancy is
flagged by CTS to the drawee bank and presenting bank, who would take
redressal measures.

 National Payments Corporation of India (NPCI) shall develop the facility of

Positive Pay in CTS and make it available to participant banks. Banks, in turn,
shall enable it for all account holders issuing cheques for amounts of ₹50,000
and above. While availing of this facility is at the discretion of the account
holder, banks may consider making it mandatory in case of cheques for
amounts of ₹5,00,000 and above.

 Only those cheques which are compliant with above instructions will be
accepted under dispute resolution mechanism at the CTS grids. Member

Vidyadeepam‐September 2020 Page 43

 
 

banks may implement similar arrangements for cheques cleared / collected

outside CTS as well.

 Banks are advised to create adequate awareness among their customers on

features of Positive Pay System through SMS alerts, display in branches, ATMs
as well as through their web-site and internet banking.

 Positive Pay System shall be implemented from January 01, 2021.

 This directive is issued under Section 10 (2) read with Section 18 of Payment
and Settlement Systems Act, 2007 (Act 51 of 2007).

XXXXXXXXXXXXXXXXX

Vidyadeepam‐September 2020 Page 44

 
 B: CIRCULAR CORNER-CREDIT
Compiled by: Shri Ranjay Kumar Jha
Chief Manager (Faculty), Staff College

Heading of Circular: Empanelment of Direct Selling Agents(DSAs)/Vehicle Loan

Counsellors (VLCs) for Sourcing of CAR Loans under Pushpaka Scheme
(Ref. ADV/118/2020-21 dated 20.11.2020)

Gist of Circular: In similar lines of Housing Loan Sourcing, Bank introduces

empanelment of DSAs/VLCs for sourcing of Car Loans under Pushpaka Scheme. The
bank has introduced the following lead sourcing agents for sourcing of Car Loans
under Pushpaka Loan Scheme:

1. Vehicle Loan Counselors (VLC)-----Individual

2. Direct Selling Agents-------Non Individuals like firms, companies & NBFCs
etc)

The role of VLCs/DSAs is limited to the sourcing of proposals only. KYC verification,
due diligence, pre-sanction survey, appraisal, documentation, disbursement and
post sanction survey in respect of Car Loans are to be done by the branches.

Commission payable to VLCs and DSAs:

Sourcing Bracket Commission Slab
Where the aggregate sourcing is upto 1.50% of Sanction amount + Applicable
Rs. 50 Lacs per months taxes with a maximum of Rs. 75000/-
per lead.
Where the aggregate sourcing is more 2.00% + Applicable taxes with a
than Rs. 50 Lacs to Rs. 5 Crs per month maximum of Rs. 75000/- per lead
Where the aggregate sourcing is more 2.50% + Applicable taxes with a
than Rs. 5 Crs to Rs. 10 Crs per month maximum of Rs. 100000/- per lead
Where the aggregate sourcing is Rs. 10 3.00% + Applicable taxes with a
Crores or more per month maximum of Rs. 150000/- per lead.

** Commission is payable only for loans of Rs. 3 lakhs and above.

Heading of Circular: Guaranteed Emergency Credit Line(GECL)-Modification

(Ref.: ADV/124/2020-21 dated 03.12.2020 issued by CSSD)

Gist of Circular: National Credit Guarantee Trustee Company Limited (NCGTC) vide
their letter with reference number 3116/NCGTC/ECLGS dated 26.11.2020, has
notified modification in the operational guidelines of the scheme:

Following modifications have been done in the existing scheme:

1. The existing scheme has been renamed as ECLGS 1.0 and the turnover limit
prescribed therein has been removed.

Vidyadeepam-December 2020 Page 9

 2. The last date of sanction of facility under the scheme(ECLGS 1.0) has been
revised to March 31,2021 or till the guarantees for an amount of Rs. 3 lakh
crore are issued by NCGTC, whichever is earlier.

Heading of Circular: Individual Housing Loans-Rationalisation of Risk Weights

(RBI/2020-21/56 DOR.No.BP.BC.24/08.12.015/2020-21 dated 16.10.2020)

Gist of Circular: As a countercyclical measure, it has been decided to rationalise

the risk weights, irrespective of the amount. The risk weights for all new housing loans
to be sanctioned on or after the date of this circular and upto March 31,2022 shall
be as under:

LTV Ratio (%) Risk Weight (%)

<=80 35
>80 and <=90 50

The requirement of standard asset provisions of 0.25% shall continue to apply on all
such loans.

The LTV ratios, risk weights and standard asset provision for all loans sanctioned prior
to the date of this circular shall continue to be as prescribed in terms of RBI circular
date June 7,2017.

Heading of Circular: IOB Home Advantage

(Ref. ADV/119/2020-21 dated 27.11.2020, issued by Retail Banking Division)

Gist of Circular: Bank has introduced a new product viz IOB Home Advantage, a
housing loan scheme under CRE – Residential Housing (RH) category which will
provide ample opportunity to rope in new HNI customers to our fold and increase
our housing loan portfolio at desired pace.

All the features of product are enumerated in the aforementioned circular.

Heading of Circular: Master Circular Loan against Property (LAP)

(Ref. ADV/128/2020-21 dated 11.12.2020, issued by Retail Banking Division)

Gist of Circular: Bank has issued a Master Circular on Loan against Property (LAP),
which consolidated all the previous modifications happened and this master
circular supersede all existing guidelines.

Heading of Circular: Modification in Scheme: Liquirent

(Ref. ADV/131/2020-21 dated 24.12.2020, issued by Retail Banking Division)

Vidyadeepam-December 2020 Page 10

Gist of Circular: Liquirent Scheme facilitates liquidity for property owners by way of
providing financial assistance against expected futures rentals from the property in
the form of Loan against Rent Receivables. Scheme was introduced in our Bank in
the year 2000 and last modifications being carried out during 2012. Now the
following modification has been done in the schemes with prospective effect.

MODIFICATION IN LIQUIRENT SCHEME:

 SECURITY: For loans upto Rs. 2.00 Lakhs, if the proposal is otherwise viable and
the Branch is satisfied about the integrity of the borrower, Branches need not
insist on any security other than the rent receivables. However for loans
above Rs. 2.00 Lakhs, Branches must insist for the equitable/registered
mortgage of the property whose rent is charged to the loan. Minimum Value
of the Security(Fair Market Value of the proposed property to be mortgaged)
should be 125% of the loan amount.
In case the property whose rent is charged to the bank, is already
mortgaged to others or the ownership of the property is not transferred in
borrower’s name, any other immovable property worth 150% of the advance
value , or Bank Deposit or NSC, KVP,IVP with face value or LIC Policy with
surrender value equivalent or more than the advance value should be
obtained as a collateral security.
 Delegated Powers to consider the deviation in Minimum Value of Security as
stipulated above:
Loan Sanctioning Authority Powers to consider deviations
Upto RLCC HLCC-GM
HLCC-GM and above Respective Sanctioning Authority.

Heading of Circular: Policy cum SOP for issuance of Look Out Circular(LOC)
(Ref. Master/07/2020-21 dated 19.12.2020, issued by SAMD)

Gist of Circular: Look out Circulars [LOCs] are permitted to be opened by various
Govt. authorities against Indian Citizens and Foreigners as per the enabling
provisions in an office memorandum dated 27.10.2010 issued by Ministry of Homer
Affairs (MoH) against their fleeing the country to escape from liabilities/punishments.

LOCs are issued against fraudsters, wilful defaulters, money launderers and also in
exceptional cases where the departure of a person from India is detrimental to the
economic interest of the country and that such departure ought not to be
permitted in the larger public interest at any given point in time.

Ministry of Finance(MoF), vide its notification dated 22.11.2008 to MD & CEOs of all
Public Sector Banks (PSB) communicated the decision of MoH vide office
memorandum dated 12.10.2018 to include the MD & CEO of all PSBs under the
authorized officials for issuance of LOC. Thus Banks MD & CEO is empowered to

Vidyadeepam-December 2020 Page 11

seek issuance of LOC against the above category of
Borrowers/Promoters/Guarantors.

Details guidelines are enumerated in the aforementioned circular.

Heading of Circular: New Business Committee
(Ref. ADV/114/2020-21 dated 09.11.2020, issued by CSSD)

Gist of Circular: As the present policy of our Bank, all fresh proposals for sanction of
credit limits of Rs. 10 Crores and above (both Fund Based and Non-Fund Based)
should be referred to the New Business Committee (NBC) at Central Office for
“Expression of Interest” to take up the proposal for consideration of merits. This
approval is required even if the group/associate concerns are banking with us.
However, if the group/associate concerns are doing the same activity or upstream
or downstream activities, approval of NBC is not necessary. If the group/associate
concerns are diversifying and entering an entirely new business activity, then
approval of NBC is required.

OPERATIONAL INSTRUCTION:

 Proposals submitted to NBC must carry Internal Rating(RAM Rating) based on

the basic available particulars.
 The proposals submitted to NBC must contain latest audited financials.
 In case of proposals related to listed companies, performance of published
quarterly result should be discussed.
 ROs to take necessary steps proactively to ensure completeness in respect of
proposals submitted.
 Full-fledged proposals must be expedited and submitted within 30 days of
Expression of Interest by NBC to the sanctioning authority for considering
sanctions on merits.

Heading of Circular: Regulatory Retail Portfolio-Revised Limit for Risk Weight

(Ref. RBI/2020-21/53, DOR.No.BP.BC.23/21.06.201/2020-21 dated 12.10.2020)

Gist of Circular: In terms of para 5.9 on “Claims included in the Regulatory Retail
Portfolios” of the Master circular No.DBR.No.BP.BC.1/21.06.201/2015-16 dated July 1,
2015 on Basel III Capital Regulations, claims (including both fund-based and non-
fund based) that meet all the four criteria listed in paragraph 5.9.3 of the above
Master Circular may be considered as retail claims for regulatory capital purposes
and included in a regulatory retail portfolio. Claims included in this portfolio shall be
assigned a risk-weight of 75 per cent, except as provided in paragraph 5.12 of
above Master Circular for non-performing assets. ‘Low value of individual
exposures’ is one of the four qualifying criteria which prescribed that the maximum
aggregated retail exposure to one counterparty shall not exceed the absolute
threshold limit of Rs. 5 crore.

Vidyadeepam-December 2020 Page 12

In order to reduce the cost of credit for this segment consisting of individuals and
small businesses (i.e. with turnover of upto Rs. 50 crore), and also to harmonise with
the Basel guidelines, it has been decided that the above threshold limit of Rs. 5
crore for aggregated retail exposure to a counterparty shall stand increased to Rs.
7.5 crore from the date of this circular. The risk weight of 75 per cent will apply to all
fresh exposures and also to existing exposures where incremental exposure may be
taken by the banks upto the revised limit of Rs. 7.5 crore. The other exposures shall
continue to attract the normal risk weights as per the extant guidelines.

Heading of Circular: Policy for Financing to Ship Breaking Industry

(Ref. CO/MSME/121/2020-21 dated 27.11.2020, issued by MSME Department)

Gist of Circular: Bank has issued a policy guidelines on “Policy for Financing to Ship
Breaking Industry”. Branches are advised to be guided by aforementioned circular.

Vidyadeepam-December 2020 Page 13

 B: CIRCULAR CORNER-FOREX
Compiled by: RANAJAY KUMAR JHA
Chief Manager(Faculty), Staff College

Heading of Circular: Common errors/omissions observed by CFEPC while

processing Forex Transactions
(Ref. FX/08/2020-21 dated 21.11.2020, issued by Treasury Department)

Gist of Circular: CFEPC had advised the common errors/omissions observed vide
Forex Permanent Circular no. FX/09/2017-18 dated 03.05.2017. Still the department
has observed many of the branches are committing repeated mistakes while
sending the assignments to CFEPC in rejections and causing delay in getting the
transaction processed.

Branches have advised through e-mail communication, teletalk, DMS remarks, etc,
to avoid such repeated mistakes and to ensure that transactions are processed
without rejection/query, thereby improving customer service.

In order to avoid recurrence of errors/mistakes and to facilitate the smooth

processing of transactions, the common errors and mistakes happening at the
branch level along with suggestions to improve the TAT, are listed out in the
Annexure of this circular.

Heading of Circular: Export Credit Insurance for Banks(ECIB) Premium Payment for
WT-PC & WT-PS to ECGC period from 01.07.2020 to 31.03.2021
(Ref. Transient Series (File C) circular no. 5 of 2020-2021 dated 19.10.2020
Gist of Circular: The captioned ECIB Policy has been renewed, revised premium
rates and other details of the policy are as under:
Particular WT-PC WT-PS
Period 01.07.2020 to 30.06.2021 01.07.2020 to 30.06.2021
Maximum Limit Rs. 650 Cr Rs. 350 Cr
Discretionary Limit Rs. 3 Cr Rs. 3 Cr
Inclusion SSE(MSME), Govt. Co. & OBU SSI(MSME), Govt. Co., OBU
& Associates
Exclusion NIL NIL
Premium 6 paise per Rs. 100/- i.e. 0.06% 9.5 paise per Rs. 100/- i.e.
0.095%
Percentage of SSE 90% PH 90%
cover Upto Set Limit 75% Upto Set 75%
Limit-NPH
Above Set 65% Above Set 65%
Limit Limit-NPH
Associates: 50%
PH/NPH

Vidyadeepam-December 2020 Page 14

Heading of Circular: Export Data Processing and Monitoring System(EDPMS) Module
for ‘Caution/De-caution listing of exporters’-Review
(Ref. RBI/2020-2021/50, A.P(DIR Series) Circular no. 03 dated 09.10.2020)

Gist of Circular:
Please refer to Para 4 of Statement on Development and Regulatory Policies issued
on October 9, 2020. In this connection, attention of Authorised Dealer Category – I
banks (AD banks) is invited to Para 3.1 of the APDIR Circular No. 74 dated May 26,
2016 on the Module for ‘Caution/ De-caution Listing of Exporters’ in the EDPMS. The
extant procedure as laid down in the above para has since been revisited and it
has been decided to withdraw the existing para 3 (1) (i) and 3 (1) (ii) with a view to
make system more exporter friendly and equitable.

Under the revised procedure, an exporter would be caution-listed by the Reserve

Bank based on the recommendations of the AD bank concerned, depending upon
the exporters track record with the AD bank and investigative agencies. The AD
bank would make recommendations in this regard to the Regional Office
concerned of the Foreign Exchange Department of the Reserve Bank in case the
exporter has come to the adverse notice of the Enforcement Directorate(ED) /
Central Bureau of Investigation (CBI) / Directorate of Revenue Intelligence (DRI)
/any such other law enforcement agency and/or the exporter is not traceable
and/or is not making sincere efforts to realise the export proceeds.

Similarly, the AD bank would also make recommendations to the Regional Office of
the Reserve Bank for de-caution-listing an exporter as per the laid down procedure.

The procedural aspects on handling of shipping documents of the caution-listed

exporters by the AD banks, as outlined in Para 3.2 of the circular ibid, remain
unchanged.

AD banks may bring the contents of this circular to the notice of their constituents
concerned. The Master Direction number 16/2015 dated January 1, 2016 is being
updated to reflect the above changes.

The directions contained in this circular have been issued under Section 10 (4) and
Section 11 (1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999)
and are without prejudice to permissions / approvals, if any, required under any
other law.

Heading of Circular: Opening of New Nostro Account in Currency SEK

(FX/9/2020-21 dated 31.12.2020, issued by Treasury Department)

Gist of Circular: Bank has opened a new Nostro Account in currency SEK with
Danske Bank, Sweden and closes the existing Nostro Account in Currency SEK with
Skandinaviska Enskilda Banken(SEB).

Vidyadeepam-December 2020 Page 15

All the branches are hereby advised to route all their transactions in currency SEK
through Danske Bank, Sweden as per the account details mentioned below:
Name & Address of Correspondent Danske Bank, Stockholm, Sweden
SWIFT DABASESX
Currency SEK
Nostro A/C no. 12460100167
IBAN SE4712000000012460100167

Address and contact details of Danske Bank, Sweden are given below:

Address : Danske Bank A/S

Norrmalmstorg 1
Box 7523
103 92 Stockholm
Sweden
Contact details: [email protected]
[email protected]

Vidyadeepam-December 2020 Page 16

 B: CIRCULAR CORNER-RECOVERY

Compiled by: Shri Padamjeet Dahiya

Senior Manager (Faculty), Staff College

Circular Title: Correspondence tracking relating to NPA Accounts in NPAWAR Portal

(Ref.: SAMD/13/2020-21dated 06.10.2020)
Issued by: SAMD
Gist of Circular:
All correspondence, communications/recommendations related to NPA Accounts
irrespective of amount originated from branch should be logged into NPAWAR
portal before dispatching to RO/CO so that SAMD can monitor TAT for decision
making and will be supportive to field staff. So Branch/RO/CO officials have to
compulsory log in to NPAWAR portal with CHRIS login id and password to lodge,
monitor, correspondence and dispose the request/recommendation and to ensure
that the correspondence are initiated error free with precision.
For any clarification, Issue of branch/RO relating to lodging in NPA WAR portal can
be taken with NPAWAR team at 044-28889365/28889323.

Circular Title: Early warning signals and red flagged acconts

(Ref.: ADV/125/2020-21dated 02.12.2020)
Issued by: CREDIT MONITORING
Gist of Circular:
The threshold limit for RFA(red flagged accounts) is Rs.3 crore and above at the
level of bank irrespective of lending arrangement. All accounts with exposure of
Rs.3.00 crores or more classified as RFA or fraud must also be reported on CRILC
Data platform, together with dates on which it has been classified as such.
Bank has purchased CRISIL EWS software and has been made available in IOB
Online home page for monitoring and reporting RFAs.
So each branch has to assign a dedicated officer to monitor the accounts on daily
basis where trigger have been breached and analyse the EWS as and when
required by login into CRISIL EWS Solution. The replies made by the officer has to be
approved by branch manager with his/her observations. The triggers escalated by
the branch to RO has to be enter and approved by the designated officer and
credit monitoring department head respectively at regional office. Branch has to
respond to triggers within 6 working days from the day triggers has been breached.
Similarly, Ro has to respond within 6 working days from the day it has been
escalated to them.
Detailed workflow of above is also made available in iob online,Also for any
clarification related to above branches.RO can take up with CRMD CENTRAL OFFICE
at 044-28519450/28889285

Vidyadeepam-December 2020 Page 17

 B: CIRCULAR CORNER-MISC.
Compiled by: N Rajasekar, Chief Manager, Staff College

Heading of Circular: Opening of Current Accounts by Banks- Need for Discipline

(Ref.) Adv/130/2020-21 dated 22.12.2020 issued by CSSD

Gist of Circular: Banks are now permitted to open specific accounts which are
stipulated under various statutes and instructions of other regulators/ regulatory
departments, without any restrictions placed in terms of CSSD circular ADV/72/
2020-21 dated 24.08.2020.

The permission is subject to the condition that these accounts are used for
permitted/ specified transactions only. Branches to identify such accounts for
flagging in the CBS for easy monitoring. Consolidated list of such accounts to be
submitted by the RO to Banking Operations Department, Central Office if no credit
facility is availed and to Inspection Department, CO wherein the subject is enjoying
credit facility (ies) from our bank. If the constituents are having any borrowing, all
the lenders to enter into agreements/ arrangements with the borrowers for
monitoring of cash flows/ periodic transfer of funds (if permissible) in these current
accounts.

Heading of Circular: lOB Trendy Savings Account

(Ref.) Dep/14/2020-21dated 31.12.2020 issued by Planning Dept.

Gist of Circular: Savings Bank account targeted at Millennials (Age group 21 years
to 38 years) loaded with special features and concession in service charges. No
Opening Balance. Maintain daily minimum balance of Rs.10000/- or daily minimum
balance of Rs. 5,000/- and digital turnover of minimum of Rs.20,000/- per month.
(Digital turnover includes Transactions using lOB ATM/CDM I lOB Mobile
Banking or Internet Banking fund transfer/ lOB UPI transactions or lOB Debit card
POS Transactions). No charges shall be levied for the first month for non-
maintenance.

Heading of Circular: Concurrent Audit System - Rectification of Deficiencies

(Ref.) Transient Series Circular No.5 File 7 (C) of 2020-21 dated 15.10.2020 issued by
Inspection Dept.

Gist of Circular: As per Concurrent Audit policy, an agenda on significant findings of

concurrent audit shall be placed to Audit Committee of Executives at CO. Hence
RO should ensure that the disposal of each deficiency reported by concurrent
auditor is discussed in RACE Meeting every month and appropriate action is taken
for early rectification with definite time line. Deficiencies should be complied within

Vidyadeepam-December 2020 Page 18

30 days from report release date. Further the compliance is to be updated and
veracity verification conducted by the concurrent auditor by checking evidences
for compliance.

Heading of Circular: Document Handling and Retention Policy

(Ref.) Misc/79/2020-21 dated 06.11.2020 issued by GAD.

Gist of Circular: Attention is invited to our circular MISCI06I2019-20 dated

18.04.2020 - Document Handling and Retention Policy 2019, reviewed annually
and approved by Bank's Board on 10.02.2020 wherein detailed guidelines were
issued for preservation I storage of required records, for disposal of unwanted I old
records and procedure to be followed while disposing the old records. However, it
is observed that certain branches have not complied with the instructions I due
procedure before destroying old records, resulting in legal complications with
investigating authorities like CBI.

It is further reiterated that, for disposal/destruction of old records upon expiry of

the period prescribed in the Policy, prior permission has to be obtained from
appropriate competent authority and a record has to be maintained with
details of documents destroyed and means of destructions.

As such, all branches I Regional Offices I Other offices are hereby advised to strictly
adhere to the Document Handling and Retention Policy 2019 in view of the sensitive
nature of the documents in Bank.

Heading of Circular: Fraud Prevention Educative Series.

(Ref.) Transient Series Circular No. 1(File C)/04/2020-21 dated 09.10.2020 issued by
FRMC, Insp Dept.

Gist of Circular: In the context of increasing frauds, Inspection department as part

of preventive vigilance and to create awareness, issues transient circular for
educative and preventive purpose. All members are advised to adhere to the
systems and procedures laid down by the bank through Circulars and Policies.
During the month of August 2020, some incidences of fraud had occurred and the
details of each fraud are given in this circular. All staff members at Branch, Regional
Offices and other offices are advised to strictly follow the guidelines/circulars issued
by Central Office or Regulators. The image of the bank can be improved by
reducing or making NIL fraud bank. The bank has also introduced various tools for
identifying at initial stages and latest tool being Whistle Blowers online submission to
detect frauds at early stage

Vidyadeepam-December 2020 Page 19

Heading of Circular: Guidance on Effective Process of Suspicious Transaction
Detection and Reporting

(Ref.) Misc/105/2020-21 dated 21.12.2020 issued by KYC-AML Dept.

Gist of Circular: Financial Intelligence Unit-India has now advised Consolidated and
Revised List of Red Flag Indicators vide their letter dated 28.09.2020. The list of 85
Red Flag Indicators {RFis) which are offline in nature are shared. The Offline Red Flag
Indicators/Scenarios are to be considered by branches for identification of
Suspicious/Unusual Transactions. The preliminary details of such unusual transactions
are to be submitted to AML Cell, Central Office as Suspicious Transaction.
Enhanced Due Diligence to be conducted for accounts for which any Suspicious
/unusual Transaction is identified. Staff members should not share any information or
tip-off regarding the identified Suspicious Transaction to customers.

Heading of Circular: SOP-Housekeeping/ Monitoring of Internal Office Accounts

(Ref.) Misc/98/2020-21 dated 21.12.2020 issued by Inspection Dept.

Gist of Circular: A comprehensive Standard Operating Procedure (SOP) for

Housekeeping and Monitoring of Internal Office Accounts has approved by our
Top Management for sustenance of effectiveness. This SOP has wide coverage in
various aspect of Housekeeping/Monitoring of Office Accounts and has absorbed
industry wide best practices and Standard references. The gist/ glimpse of SOP
coverage areas is as follows:

 Ownership and Commitment at CO level- Procedures

 Opening of New GL I Office A/c Procedures
 Re-Opening of Blocked GL/ Office A/c Procedures
 Closure/ Block of Office Accounts- Procedures
 Standardised Indent Forms - Annexure
 Supervision, Monitoring, Reconciliation and Reporting Mechanism
 Internal Audit/ External Audits- Regular and Concurrent
 Adequacy of Coverage in existing Audit Frames
 Oversight by Board Sub Committee- ACB/ACE
 Special Observance of GL Housekeeping Day in a month.
 Internal Procedures at lTD.

Vidyadeepam-December 2020 Page 20

Heading of Circular: Physical Cash Verification & Reconciliation of Cash Branch
managed ATM/ Cash Recyclers.

(Ref.) Misc/65/2020-21 dated 01.10.2020 issued by Inspection Dept.

Gist of Circular: Branches/ RO should note that Cash in ATMs and Cash in Recyclers
shall be treated at par with Cash Balance at all points of time and the cash
Balance in ATM and Cash Recycler shall be physically verified daily by Branches as
per extant guidelines issued by MSD-CO, vide its circular No.MISC/438/2009-10
dated 08.01.2010 had issued the guidelines with regard to physical verification of
Cash in ATMs. Please refer to CO Circular No.ITEC/68/2017-18 dated 27.03.2018
wherein ROs are advised to undertake Quarterly Physical Cash verification of
ATM/Cash Recyclers managed by Branches by Officers not attached to that
Branch. All Branches and ROs are advised to ensure strict Compliance.

Heading of Circular: Positive Pay System (PPS) on Cheque Truncation System.

(Ref.) Misc/97/2020-21 dated 21.12.2020 issued by Banking Operation Dept.

Gist of Circular: RBI has announced introduction of Positive Pay System for Cheque
Truncation System (CTS) with effect from 01.01.2021. This system aims to reduce
instances of Fraud for all cheques of Rs.50,000/ and above.

It’s a process of reconfirming key details of large value cheques for the CTS
instruments, by the issuer. Under this process, before presentation of the instrument,
the account holder submits the details of the cheque (viz. Account Number,
Cheque Number, Cheque Date, Cheque Amount, Transaction Code, MICR Code
and Payee Name) electronically for the cheque issued amount of Rs. 50,000/- &
above through Channels like Internet Banking, Login through www.iob.in, Mobile
Banking, ATM.

SMS has been sent to all the customers, by C.O., in order to create awareness on
the PPS System among our Bank's customers. Details on PPS have also been ported
on the Bank's Intranet and Website. ROs to ensure that the posters on PPS shared
through E-mail by CO are suitably displayed at the branches, to ensure awareness
among the customers.

Heading of Circular: Revised Policy 2020 on KYC norms / AML Standards / CFT and
Obligation of banks under Prevention of Money Laundering act.

(Ref.) Master/06/2020-21 dated 19.11.2020 issued by KYC-AML Dept.

Gist of Circular: The revised policy on KYC norms/ AML Standards/ CFT and
obligations of the Bank under Prevention of Money Laundering Act, was approved
by the Risk Management Committee of the Board on 17.09.2020 and approved by

Vidyadeepam-December 2020 Page 21

the Board on 06.11.2020. The Revised policy is valid up to 30.11.2023 (i.e. three years
from the end of the month in which the Board approved the policy).

Operational Staff are required to realize the functional significance of KYC/ AML
Procedures and ensure sincere commitment for compliance in their day-to-day
activities of branch banking to safeguard our esteemed genuine customers, the
bank and its work force from the nefarious activities of Money Launderers.

Heading of Circular: Revision in SB Interest Rates w.e.f. 09.11.2020

(Ref. Dep/12/2020-21 dated 07.11.2020, Planning Dept)

Gist of Circular: Interest rate applicable for SB accounts having balance above
Rs.25Lacs (linked to repo rate) will be 3.05% (i.e. Repo rate (4.00%)- 0.95% = 3.05%)
and accounts having balance of Rs.25 Lacs and below (not linked to Repo rate)
has also been revised to 3.05%.

Heading of Circular: Revision of LFAR by RBI

(Ref. Transient Series Circular No. 19 File 7(d) of 2020-21 dated 03.12.2020, BSMD)

Gist of Circular: RBI, Department of Supervision, Mumbai vide its letter dated
DOS.CO.PPG/SEC.01/11.01.005/2020-21 dated 5th September, 2020 has revised the
LFAR format, keeping in view the large scale changes in the size, complexities,
business model and risks in the banking operations, in consultation with the
stakeholders, including the Institute of Chartered Accountants of India (ICAI). The
details of revised LFAR format are as given below:-

A.Annexure I for Statutory Central Auditors

B. Annexure II for Statutory Branch Auditors

C. An Appendix as part of Annexure II for the Specialised Branches; and

D. Annexure Ill on Large/Irregular/Critical Accounts for Statutory Branch Auditors

RBI has advised that the revised LFAR formats are required to be put into operation
for the period covering FY 2020-21 onwards. The mandate and scope of the audit
will be as per this format (and if the Statutory Central Auditor feels the need of any
material addition, etc. this may be done by giving specific justification by the
SCA and with the prior intimation of the Bank's Audit Committee of Board (ACB).

Vidyadeepam-December 2020 Page 22

Heading of Circular: Role Functions of Credit Monitoring Department at Regional
Office- Timeline for various jobs.

(Ref. Adv/112 / 2020-21dated 09.11.2020, Credit Monitoring Dept)

Gist of Circular: To maintain asset quality and prevent accretion of NPAs, effective
monitoring of credit portfolio assumes greater significance at this juncture. Bank has
formed a separate Credit Monitoring Department at Central Office with effect
from 01.08.2007 to focus on monitoring of Iarge value advances with working
capital limit of Rs.100 lacs and above through CSS, Watch Category (SMA) and
scrutiny of ERI statements. Our Bonk has already put in place an effective
Credit Monitoring System which enables us to identify Early Warning Signals and
take necessary corrective steps. Over the years many instruments/tools have been
designed and added for monitoring of the advances and role function of CRMD at
CO/RO/BR has evolved over a period of time. With the structural change effected
after closure of ZOs, the role functions of the CRMD at ROs to be in same line with
CRMD CO.

The Role Functions explained in this circular are arrived at after careful deliberation,
planning and keeping in view the requirement of CRMD as a whole. All these
functions should be carried out by CRMD RO on priority basis in timely manner and
without any laxity.

Heading of Circular: Stock Audit Management System

(Ref. Transient Series Circular No.6 File 7(C) of 2020-21dated 07.11.2020)

Gist of Circular: Stock Audit is conducted every year to verify the stock & book
debts to ensure proper valuation, availability of adequate, non-obsolete and
moveable stock, regular book debts which covers the Bank's exposure, availability
of margin as per the terms of sanction & overall analysis of the data, checking for
early warning signals (as detailed in RBI circular dated 07.05.2015)by correlating
various parameters like ageing of book debts, obsolete stock, maintenance of
records, etc.

IT Department at the request of Inspection Department has developed a portal

exclusively for Stock Audit Management right from identification of accounts,
confirmation of eligible accounts by RO, assignment of audit, until submission of
report and payment of fees. The portal has been ported under PRODUCTS>
CO/RO/BRANCH PRODUCTS.

Vidyadeepam-December 2020 Page 23

With the introduction of this portal, the tracking of the stock audit progress will be
made easier and smoother. Besides, reducing the protracted correspondence
between CO/ROs/Branches, the usage of the portal will save the precious time of
CO/RO by minimising email correspondence & shorten the turnaround time.

Vidyadeepam-December 2020 Page 24

 B: CIRCULAR CORNER-DIGITAL BANKING

Compiled by: Shri Jeetendra Kumar Panda

Senior Manager-Faculty, Staff College

Heading of Circular: Pishing Mails Targeting Branches having FORBES passbook

kiosk machines
(Ref. ITEC/17/2020-21 dated 05.10.2020)

Gist of Circular:
Recently it has been observed that, pishing mails containing banking Trojan files are
being received by branches. This is particularly received in branches which are
provided with Forbes passbook kiosk.

Preventive Measures:
1. Beware of unsolicited E-mails and do not click any URL or download any
attachments in such e-mails.
2. Always be cautious and check the sender e-mail id before responding
3. Beware of the attachments found in e-mail, especially attachments with
numeric names and in [.]zip, [.]rar, [.]7zip formats
4. Do not attempt to click on any suspicious URL present in the E-mail with DNS
address/Numeric value.
5. Be-aware of responding to E-mail addresses having spelling errors.

Heading of Circular: Vulnerabilities in WhatsApp

(Ref. ITEC/18/2020-21 dated 09.11.2020)

Gist of Circular:
MEITY has informed to bank that WhatsApp and WhatsApp Business for iOS which
could allow a remote attacker to bypass security restrictions or execute arbitrary
code on the target system.
1. Improper Access Control Vulnerability (CVE-2020-1908)
This vulnerability exists in the Screen Lock feature in WhatsApp and WhatsApp
Business due to improper authorization of input. An attacker could exploit this
vulnerability by using SIRI to communicate even after the phone is locked.
Successful exploitation of this vulnerability could allow the attacker to bypass
security restrictions.

2. Use-After-Free Vulnerability (CVE-2020-1909)

This vulnerability exists in the logging library in WhatsApp and WhatsApp Business
for iOS due to a use-after-free error. A remote attacker could exploit this
vulnerability by sending a specially crafted animated sticker to the target user

Vidyadeepam-December 2020 Page 25

while placing a WhatsApp video call on hold, resulting in several events occurring
together in sequence. Successful exploitation of this vulnerability could lead to
memory corruption, denial of service conditions or execution of remote code.
Solution:
The only solution to avoid such type of vulnerability is to upgrade to latest version
of WhatsApp. All the staff members are advised to follow the recommended
security guidelines to protect themselves.

Vidyadeepam-December 2020 Page 26

 B: CIRCULAR CORNER-CREDIT

Compiled by: Ranjay Kumar Jha

Chief Manager (Faculty), Staff College

Heading of Circular: Safeguard Against Frauds in Jewel Loan Accounts

(Ref. Misc/138/2020-21 dated 02.03.2021)

Gist of Circular: Branches are advised to follow the following guidelines while
granting jewel loans to check the frauds in this area:

 Necessary due diligence MUST be carried out by Branches before sending

recommendation to Regional Office for engagement of Jewel Appraiser.

 Advances against gold ornaments can be granted only after the

ornaments are duly appraised by the Jewel Appraiser, engaged by the
Bank and only when the Manager and other Officers who are involved in
sanctioning the advances have fully satisfied themselves as to the weight,
fineness and valuation of the ornaments.

 Branches should be extremely vigilant against spurious ornaments made of

brass with a coating of gold can be passed off as solid gold ornaments.

 Jewels embedded with precious stones like diamond, emerald etc; should
not be accepted under any circumstances.

Heading of Circular: Close Monitoring of Jewel Loan

(Ref. ADV/160/2020-21 dated 11.03.2021, issued by Jewel Loan Cell, ARID)

Gist of Circular: Our Bank has been fixing the per gram advance rate against
gold ornaments and Jewellery at 90% LTV on monthly average basis as per the
RBI circular no. DoR.No.BP.BC./6/21.04.048/2020-21 dated 06.08.2020. As there is a
continuous reduction in the Gold Price and need to restore the LTV at 75% for
loans to be sanctioned from 1st April,2021, Regional Offices and Branches to
closely monitor the Jewel Loans sanctioned at 90% LTV on a regular basis and
maintain LTV as per our present per gram advance rate.
Jewel Loans with security shortfall report is available in FINACLE report server i.e.
HFINRPT -> 25. ADV-JEWEL LOANS WITH SECURITY SHORTFALL.

Heading of Circular: Electronic Clearing System(ECS) Facility for Retail Loans

(Ref. MISC/118/2020-21 dated 27.01.2021, issued by Retail Banking Division)

Gist of Circular: Electronic Clearing System (ECS) is an effective recovery tool

which ensures EMIs are serviced promptly on due date. Also, ECS mandate to be

Page 14 of 46
made compulsory for our existing and new borrowers wherever their
salary/business accounts are maintained outside our bank.
During the Annual Financial Inspection of RBI, It was observed that less than 30%
of our Retail Loan portfolio is servicing EMIs on due date.
It is also notices that only few branches have utilized this facility by obtaining ECS-
credit mandates from loan borrowers and registered under ECS facility. Branches
are hereby advised to insist all loan borrowers for registering ECS facility wherever
applicable. ECS credit registrations to be done by obtaining mandates in
following cases:
 Retail Loans- where borrower maintains primary income source account
with other Bank.
 New Customer brought into our fold.
 Borrowers who have addressed logistical problems in remittance of EMIs
periodically.
 Schemes like Housing Loans, Clean Loans, Pushpaka Loans, and Mortgage
Loans etc.
List is only illustrative not exhaustive, Branches to endeavour for ECs registration at
the time of sanction of loan itself for timely collection of EMIs.
Heading of Circular: Standard Operating Procedures (SOP) for Housing Loans
(Ref. ADV/144/2020-21 dated 04.02.2021, issued by Retail Banking Division)

Gist of Circular: Bank has issued a comprehensive and exhaustive SOPs for doing
Housing Loans. Branches to be guided by this SOPs for Housing Loan.
Heading of Circular: Introduction of Digital Loan Initiatives: Loan Against Deposits
(Ref. ADV/148/2020-21 dated 10.02.2021, issued by Retail Banking Division)

Gist of Circular: Bank has launched loan against deposits online and it is the first
product under Digital Loan Initiatives.
Initiative Highlight:
 This facility is available across all channels i.e. Bank Website (www.iob.in)
Internet Banking and Mobile Banking App.
 Facility has been designed in a very simple way and the application can
be filled by the applicant in no time.
 The facility is fully secured and with easy way of filling the information online.
 Once an application is filled and submitted the data will be stored at
central server for better follow up and monitoring.
The loan application can be accessed through our Bank website i.e. www.iob.in -
- Click on Retail Loans Digital Loan Facility Loan against Deposit.
Heading of Circular: Introduction of Online Gold Loan Application Facility

Page 15 of 46
(Ref. ADV/146/2020-21 dated 09.02.2021, issued by Jewel Loan Cell, ARID)

Gist of Circular: Online Jewel Loan Application facility is provided in our Bank’s
website, Internet Banking and Mobile Banking. Our Customers and Non
Customers can apply for Jewel Loan through our Bank’s website, while our
Customers can access the facility through our Net Banking and Mobile Banking
facility also. Four Jewel Loan Schemes viz. AGTAJ, JLOTH, JLSME and JLSWL can
be applied through this facility. A reference no. will be generated after the
successful submission of the application.
Heading of Circular: Introduction of “Online Processing of AGRI-TRANSPORT
YOJANA”
(Ref. ADV/134/2020-21 dated 31.12.2020, issued by Agriculture & Rural Initiatives)

Gist of Circular: Bank has introduced AGRI-TRANSPORT YOJANA for financing two,
three and four wheelers vehicles for agriculture use. The facility is provided in IOB-
Online under Branch products for users to process loans under Agri Transport
Yojana. The utility facilitates Automated Assessment, Office Note Generation,
Sanction and Disbursement in Finacle.
Heading of Circular: Large Exposure Framework
(Ref. ADV/159/2020-21 dated 09.03.2021, issued by CSSD)

Gist of Circular: RBI, after reviewing the Large Exposure Framework (LEF)
guidelines has decided to further exempt exposures to foreign sovereigns or their
central banks from the LEF. Accordingly, the following shall be exempted from
LEF:
 Exposures to foreign sovereigns or their central banks that are :
 Subject to a 0% risk weight under table 2 of paragraph 5.3.1 of
the Master Circular-Basel III Capital Regulations dated July 1,
2015 as modified vide circular dated October 8, 2015.
 Denominated in the domestic currency of that sovereign and
met out of resources of the same currency.
Heading of Circular: Introduction of Online Processing of PMSVANidhi Application,
Automated Mater Opening in Finacle and automated reporting in SIDBI portal
(Ref. ADV/137/2020-21 dated 08.01.2021)

Gist of Circular:

PMSVANidhi Loan- Online Processing

Product can be accessed through IOB Online  Branch Product Under the
head “ Online Processing of PMSVANidhi Loans”.

Then users will be taken to the Login page of the Online Processing. User can
Login using Branch code, Roll No. and CHRIS Password.

Page 16 of 46
Before proceeding for online processing branches to ensure the following:

 To obtain consent for creation of QR code / UPI ID

 To make sure all CIF IDs are created and verified. Basic details such as
Address, Age, and Gender will be picked up from CIF ID automatically.

Vendor ID/ Other vendor details will be picked up from SIDBI portal automatically.

Heading of Circular: Pradhan Mantri Mudra Yojana(PMMY), Coverage of

Agriculture activities under MUDRA with CGFMU Scheme.
(Ref. ADV/155/2020-21 dated 01.03.2021, issued by ARID)

Gist of Circular: Branch to be guided by the above circular.

Heading of Circular: Renewal of Policy on Empanelment of TEV consultant

(Ref. MISC/140/2020-21 dated 08.03.2021, issued by Credit Monitoring)

Gist of Circular: The policy has been since reviewed by Board on 04.01.2021 and
following changes made:
S.N. Existing Revised
01 The consultants would be The consultants would be engaged
engaged for TEV study for for TEV study for new(Green Field)
new(Green Field) projects of Rs. 50 projects of Rs. 25 Crores and above
Crores and above
02 In case of consortium/multiple In case of consortium/multiple
banking advances, where the banking advances, where the total
total cost is Rs. 25 Crores and cost is Rs. 50 Crores and above, Bank
above, Bank shall insist TEV study. shall insist TEV study.
However, if any member Bank of However, if any member Bank of the
the consortium/multiple banking consortium/multiple banking had
had already conducted TEV already conducted TEV study, Bank
study, Bank shall accept the same shall accept the same instead for
instead for fresh one. fresh one.
03 Approval for fresh empanelment is Approval for fresh empanelment is
given by Banking Operation given by Credit Monitoring
Department, Central Office. Department, Central Office.
Subsequent review is to be done Subsequent review is to be done by
by respective regional offices respective regional offices annually.
annually.

Heading of Circular: Stand Up India Loans: Amendment in the Scheme Guidelines

(Ref. ADV/151/2020-21 dated 17.02.2021, issued by MSME)

Gist of Circular:

Page 17 of 46
S.N. Particular Old Guidelines Revised Guidelines
01 Margin Money Min. Margin 25% of the project Min. Margin 15% of the
cost. Out of which minimum project cost, However,
10% should be from promoters borrower will continue to
own contribution. contribute at least 10% of
the project cost as own
contribution.
02 Eligible The enterprise may be in In addition to old eligible
Activity manufacturing, service activity, Loan for
including trading sector enterprises in Activities
coming under the ambit of allied to agriculture e.g.
Micro & Small Sector as per pisiculture, beekeeping,
MSMED Act, 2006/RBI poultry, livestock, rearing,
Guidelines. grading, sorting,
aggregation agro
industries, dairy, fishery,
agriclinic and
agribusiness centres,
food & agro processing
etc.( excluding corp
loans, land
developments such as
canals, irrigation wells)
and service be eligible
for coverage under the
scheme.

Page 18 of 46
 B: CIRCULAR CORNER-FOREX

Compiled by: Mr. Bikas Kumar Sah

Chief Manager(Faculty), Staff College

Heading of Circular: Discontinuation of cheque services currency in NZD

(Ref. Treasury/FX/12/2020-21dated 03.03.2021)

Gist of Circular: Our Bonk is maintaining a Nostro Account in currency New

Zealand Dollar (NZD) with Australia & New Zealand Bonking Group Ltd (ANZ Bonk
Ltd).

ANZ Bank Ltd. Is moving away from paper based clearing and hence collection
of Cheques / Drafts / Other Cleon instruments will not be accepted for processing
which may be received by them for payment after 3lst May 2021. ltems received
by ANZ Bonk Ltd after 31st t May 2021 will be returned without processing.

Heading of Circular: EUR ChequeClearing Services by Standard Chartered

Bank(SCB)-Revision in Charges.
(Ref. Treasury/FX/01/2020-21 dated 01.03.2021)

Gist of Circular: Standard Chartered Bank has increased the charges for
collection of the cheques under the Cosh Letter Services and the charges for
issuing drafts drawn on Standard Chartered Bank.

Branches are informed that the charges for collection of cheques / drafts/other
clean instruments under the Cash Letter Services and Fee for issuing of drafts
drawn on SCB ore revised as below:
(i) Clearing Services:
Sl. No. Type Revised Charges
1. Collection charges per instrument EUR 35.00
2. Cheque return per instrument EUR 85.00

* Chq Return charges - EUR 85 + additional fee if any charged by the Drawee’ s
Bonk.

(ii) Demand Drafts in currency EUR issued on SCB:

Sl. No. Type Revised Charges
1. Draft issuance charges EUR 40.00
2. Stop payment charges EUR 50.00

ln case of stop payment of the cheques, Branches may recover EUR 50 from the
customer of the time of sending stop payment instruction to the drawee Bank,
i.e., Standard Chartered Bank.
In addition to the above mentioned correspondent charges, the existing charges
for collection of cheques as applicable will be continued.

Heading of Circular: FETERS – Cards: Monthly Reporting

Page 19 of 46
(Ref. RBI/2020-21/113 A.P. (DIR Series) Circular No.13, 25.03.2021)

It has been decided to collect more details of international transactions using

credit card / debit card / unified payment interface (UPI) along with their
economic classification (merchant category code – MCC) through a new return
called ‘FETERS-Cards’ on compilation of R-return, using the same web-portal
(https://bop.rbi.org.in).

Nodal offices of Authorised Dealers (ADs) may submit FETERS-Cards details on the
web-portal in the following manner:
A. For transactions through credit card / debit card / UPI:
(i) Sale of forex by AD towards international transaction made by Indian resident
(to be reported by the card issuing / transaction originating AD); and
(ii) Purchase of forex by AD under transaction by foreign resident with Indian
resident (to be reported by merchant acquirer AD).
The circular also explains the format for submission of the above information.

AD Banks need to report all card transactions (e.g., through PoS terminals / e-
commerce (online purchase) / for transferring funds to bank accounts).

ADs shall submit the FETERS-Cards data on the web-portal (https://bop.rbi.org.in)

by using the RBI-provided login-name and password, within seven working days
from the last date of the month for which data are being reported. FETERS-Cards
reporting will be implemented for the transactions taking place from April 1, 2021.

Heading of Circular: Foreign Exchange Management (Export of Goods and

Services) (Amendment) Regulations, 2021
(Ref. FEMA 23(R)/(4)/2021-RB dated 08.01.2021)

Reserve Bank of India makes the following amendments in the Foreign Exchange
Management (Export of Goods & Services) Regulations, 2015 [Notification No.
FEMA 23(R)/2015- RB dated January 12, 2016] i.e. the Principal Regulations,
namely:
“(ea) re-export of leased aircraft/helicopter and/or engines/auxiliary power units
(APUs), either completely or in partially knocked down condition re-possessed by
overseas lessor and duly de-registered by the Directorate General of Civil
Aviation (DGCA) on the request of Irrevocable Deregistration and Export Request
Authorisation (IDERA) holder under ‘Cape Town Convention’ or any other
termination or cancellation of the lease agreement between the lessor and
lessee subject to permission by DGCA/Ministry of Civil Aviation for such export/s.”

Hence, the above principal regulation should be read with the modification, in
regulation 4, for sub-regulation (ea), and the above shall be substituted.

Page 20 of 46
Heading of Circular: GBP Cheque
Clearing Services by Standard Chartered
Bank(SCB)-Revision in Charges.
(Ref. Treasury/FX/10/2020-21 dated 01.03.2021)
Gist of Circular: Standard Chartered Bank has increased the charges for
collection of the cheques under the Cosh Letter Services and the charges for
issuing drafts drawn on Standard Chartered Bank.

Branches are informed that the charges for collection of cheques / drafts/other
clean instruments under the Cash Letter Services and fee for issuing of drafts
drawn on SCB ore revised as below w.e.f. 01.04.2021:
(i) Clearing Services:
Sl. No. Type Revised Charges
1. Collection charges per instrument GBP 25.00
2. Cheque return per instrument GBP 75.00*

* Includes the cost of courier return and advice.

(ii) Demand Drafts in currency GBP issued on SCB:

Sl. No. Type Revised Charges
1. MICR encoded GBP cheques GBP 25.00
2. Non-MICR encoded GBP cheques GBP 50.00
3. Stop payment charges GBP 50.00
4. Return of Demand Drafts* GBP 50.00
*In case of an invalid or no MT 110 advice for issuance.

ln case of stop payment of the cheques, Branches may recover GBP 50 from the
customer of the time of sending stop payment instruction to the drawee Bank,
i.e., Standard Chartered Bank.

In addition to the above mentioned correspondent charges, the existing charges

for collection of cheques as applicable will be continued.

Heading of Circular: Investment by Foreign Portfolio Investors (FPI) in Defaulted

Bonds - Relaxations
(Ref. RBI/2020-21/105 A.P. (DIR Series) Circular No. 12 dated 26.02.2021)

Gist of Circular: Attention of AD Category-I banks is also invited to para 12 of

Statement on Developmental and Regulatory Policies dated February 05, 2021,
wherein it was announced that FPI investment in defaulted corporate bonds will
be exempted from the short-term limit and the minimum residual maturity
requirement under the MTF.

Currently, FPI investments in corporate bonds are subject to a minimum residual

maturity requirement, short-term investment limit (paragraph 4 (b)(ii)) and the
investor limit (paragraph 4(f)(i)) in terms of the Directions. However, FPI
investments in security receipts and debt instruments issued by Asset
Reconstruction Companies and debt instruments issued by an entity under the
Corporate Insolvency Resolution Process as per the resolution plan approved by
the National Company Law Tribunal under the Insolvency and Bankruptcy Code,

Page 21 of 46
2016 are exempt from these requirements. It has now been decided to exempt
investments by FPI in NCDs/bonds which are under default, either fully or partly, in
the repayment of principal on maturity or principal instalment in the case of
amortising bond from the aforesaid requirements.

Heading of Circular: LIBOR TRANSITION - MIGRATING TO RISK FREE RATE (RFR)

(Ref. Treasury/FX/13/2020-21 dated 05.03.2021)
Gist of Circular: London's Financial Conduct Authority, the regulator for LIBOR
announced that from end of 2O2l, it would not compel panel banks to publish
LIBOR due to allegation of manipulation in LIBOR Rate over the years.

Hence Central Banks around the world started preparations for the cessation and
identify suitable replacement benchmarks. In India, the efforts in this direction are
monitored by RBI and lBA.
Developments around the world:

With the planned cessation fast approaching, Central banks started deliberations
on the potential successor benchmark and after consultations, recommended
successor roles in their respective jurisdiction as recommended by the risk free
rate (RFR) committees.
Principal of Characteristics
Risk Free Rates (RFRs) Inter Bank Offered Rate (IBOR)
Overnight Deposits Inter Bank Offered Rates overnight to 1
Year
Calculated in arrears/backward Forward looking
looking
Risk free or Nearly Risk Free Incorporates Credit Risk
Transaction Based Submission, or Partly based transaction
Future cash flows based on Term Rate, certain future cash flows set
compounding arrears by each tenor

lt is to be noted thot since LIBOR is on unsecured rote, there is on element of risk

premium embedded in the pricing and hence the LIBOR rotes ore slightly higher
than the recommended replacement rates, which ore risk free rates (RFRs) or
near to risk free to compensate this, the alternate rate committees have
suggested adding a spread adjustment between LIBOR and RFRs by calculating
the difference between the median of historical rotes over o five-year period.

Central Office will soon be providing further guidelines on the impending

migration from LIBOR on legal formalities, documentotion etc. ln the meantime,
branches are advised to inform all customers enjoying credit facilities which are
linked to LIBOR.

A letter as per Annexure to this circular shall be handed over to customers (both
borrowers and guarantors) enjoying such facilities and record of
acknowledgement of having handed over the letter be maintained.

Heading of Circular: Margin for Derivative Contracts

(Ref. RBI/2020-21/98 A. P. (DIR Series) Circular No. 10 dated 15.02.2021)

Page 22 of 46
Gist of Circular: Directions are being issued to allow posting and collection of
margin for permitted derivative contracts between a person resident in India and
a person resident outside India.

AD Cat-I banks may post and collect margin in India, on their own account or on
behalf of their customers, for a permitted derivative contract entered into with a
person resident outside India in the form of:
(i) Indian currency;
(ii) Freely convertible foreign currency;
(iii) Debt securities issued by Indian Central Government and State Governments;
(iv) Rupee bonds issued by person’s resident in India which are: (a) Listed on a
recognized stock exchange in India; and
(b) Assigned a credit rating of AAA issued by a rating agency registered with the
Securities and Exchange Board of India. If different ratings are accorded by two
or more credit rating agencies, then the lowest rating shall be reckoned.

AD Cat-I banks may post and collect such margin outside India in the form of:
(i) Freely convertible foreign currency; and
(ii) Debt securities issued by foreign sovereigns with a credit rating of AA- and
above issued by S&P Global Ratings / Fitch Ratings or Aa3 and above issued by
Moody’s Investors Service. If different ratings are accorded by two or more credit
rating agencies, then the lowest rating shall be reckoned.

AD Cat-I banks may receive and pay interest on margin posted and collected on
their own account or on behalf of their customers for a permitted derivative
contract entered into with a person resident outside India.

AD Cat-I banks shall maintain a separate account in the name of person’s

resident outside India for the purpose of posting and collecting cash margin in
India, and transactions incidental thereto.

Heading of Circular: Remittances to International Financial Services Centres

(IFSCs) in India under the Liberalised Remittance Scheme (LRS)
(Ref. RBI/2020-21/99, A.P. (DIR Series) Circular No. 11 dated 16.02.2021)
Gist of Circular: AD Category - I Bank may allow resident individuals to make
remittances under LRS to IFSCs in India, subject to the following conditions:
i. The remittance shall be made only for making investments in IFSCs in securities,
other than those issued by entities/companies resident (outside IFSC) in India.
ii. Resident Individuals may also open a non-interest bearing Foreign Currency
Account (FCA) in IFSCs, for making the above permissible investments under LRS.
Any funds lying idle in the account for a period up to 15 days from the date of its
receipt into the account shall be immediately repatriated to domestic INR
account of the investor in India.
iii. Resident Individuals shall not settle any domestic transactions with other
residents through these FCAs held in IFSC.

Page 23 of 46
 B: CIRCULAR CORNER-Misc

Compiled by: N Rajasekar, Chief Manager (Faculty), Staff College

Heading of Circular: Assignment of Additional Charge of Chief Vigilance Officer

(Ref. Transient Series (File 7F) Circular No. 163 of 2020-21 dated 24.03.2021)

Gist of Circular: Sri. Sudhakar R lyer, CVO, Indian Bank has been assigned with
additional charge of Chief Vigilance Officer of our Bank with immediate effect
for a period of 3 months or till expiry of the term of deputation, whichever is
earlier, consequent upon appointment of Sri.A.B.Vijayakumar, CVO as Executive
Director in Bank of Maharashtra.

Heading of Circular: Business Correspondent–Strengthening Supervision Framework

(Ref. Misc /132/2020-21 dated 22.02.2021, Financial Inclusion Dept)

Gist of Circular: BCs play a vital role in rural areas by way of facilitating small
value transactions (both receipts and payments), disbursing OAP, NREGS etc.
Reference is invited to various complaints received against BCs for non-payment
of cash immediately to customers, collecting commission from rural people for
OAP and NREGS payments, the receipts generated through HHD not handed
over to the customers for every transaction, OAP /SLTR payments are not paid at
the door step of the customers, ill-treatment of customers and accepting
withdrawal slips from the customers. In order to mitigate the above complaints
the operational instructions for Branches/ROs are reiterated. Branches are
advised to follow the guidelines.

Heading of Circular: Compensation Policy

(Ref. Misc /111/2020-21 dated 05.01.2021, Customer Service Department)

Gist of Circular: Compensation policy is designed to cover areas relating to

unauthorized debiting of account, payment of interest to customers for delayed
collection of cheques/instruments, payment of cheques after acknowledgement
of stop payment instructions, remittances within India, foreign exchange services,
lending, etc.
The objective of this policy is to establish a system whereby the bank compensates the
customer for any financial loss he/she might incur due to deficiency in service on the
part of the bank or any act of omission or commission directly attributable to the bank.
By ensuring that the customer is compensated without having to ask for it. The bank
expects instances where the customer has to approach Banking Ombudsman or any
other Forum for redressal to come down significantly. Branches are advised to follow the
guidelines.

Heading of Circular: Policy for Grievance Redressal in Banks

(Ref. Misc /110/2020-21 dated 05.01.2021, Customer Service Department)

Gist of Circular: This policy follows the under noted principles.

Page 24 of 46
a) Customer be treated fairly at all times.
b) Complaints raised by customers are dealt with courtesy and on time.
c) Bank will handle all complaints efficiently, fairly and in a time bound manner.
d) Customers are fully informed of avenues to escalate their
complaints/grievances within the organization and their rights to alternative
remedy, if they are not fully satisfied with the response of the bank to their
complaints.
e) The bank employees must work in good faith and without prejudice to the
interest of the customer.
The employees should be made aware about the Complaint handling mechanism by
conducting staff meetings and customers meeting etc.

Heading of Circular: Policy for Internal Ombudsman Scheme 2018

(Ref. Misc /112/2020-21 dated 05.01.2021, Customer Service Department)

Gist of Circular: The objective of the policy is to appoint an Internal Ombudsman

(IO) as an independent authority to review complaints that were partly or
wholly rejected by the bank. The IO mechanism was set up with a view to
strengthen the internal grievance redressal system of banks and to ensure that
the complaints of the customers are redressed at the level of the bank itself by
an authority placed at the highest level of bank' s grievance redressal
mechanism so as to minimize the need for the customers to approach other fora
for redressal.
Procedure for complaint Redressal by Internal Ombudsman
•Bank shall establish a system of auto-escalation of complaints that are partly or wholly
rejected by the internal GRM to the IO through their Complaints Management Software
(CMS) for a final decision and shall internally escalate all such complaints to the IO within
two weeks of receipt of complaint, before conveying the final decision to the
complainant within a period of 30 days, from the receipt of complaint.
•Bank shall furnish all records / documents sought by the IO to enable him / her to
redress and resolve customer grievances expeditiously. In case of disagreement with
the decision of the IO, the bank may obtain approval of the ED in charge of customer
service of the bank and the reply forwarded to the complainant shall mention that the
decision of the bank has the approval of the ED. All such cases shall be subsequently
reviewed by the CSCB
•The decision of the IO shall be mandatorily included in the information submitted
by banks to the BO, while furnishing documents related to the complaints received in
the office of the BO. Bank shall use the analysis of complaints handled by IO in their
training programmes / conferences to raise awareness, inter alia, about the patterns of
complaints among the frontline staff and facilitate consistency in handling of similar
complaints. The 10 may also be associated for such trainings, where necessary.
•Bank shall not provide the contact details of the IO in the public domain as the
IO shall not handle complaints received directly from the customers
Heading of Circular: Availability of RTGS on 24x7 basis
(Ref. Misc /122/2020-21 dated 03.02.2021, Banking Operations Department)

Gist of Circular: RBI vide RBI/2020-21/70 DPSS (CO) RTGS No.750/04.04.016/2020-

21 dated December 4, 2020 has advised the availability of Real Time Gross
Settlement (RTGS) System round the clock on all days of the year with effect
from 00:30 hours on December 14, 2020.

Page 25 of 46
Our Bank has implemented the Real Time Gross Settlement (RTGS) System on a
24*7 basis with effect from 14.12.2020.

Heading of Circular: Discontinuation of "Missed Call Feedback System"

(Ref. Misc /114/2020-21 dated 22.01.2021, Customer Service Department)

Gist of Circular: Our Bank had introduced the missed call services feedback to
redress the grievance of the customers and to improve the customer service at
Branches. The concept was called "Collect Feedback of Customers through
Missed Call Concept".

For Happy Calls 88288 46225

 
For Unhappy Calls 88288 46220

In the CSCB meeting held on 02.12.2020, our MD & CEO and other Board of
Directors felt that in today’s digital arena this facility seems to be outdated and
"Missed Call Feedback System" does not provide any value addition to the
existing system. Department has done the Cost Benefit Analysis and based upon
that our Top Management has decided to Discontinue this Service.

Heading of Circular: Caution to be taken while Creating CIF-IDs for Non-Individual

Customers like Companies/Trust/Societies/Firms etc.
(Ref. Misc /120/2020-21 dated 02.02.2021, Planning Department)

Gist of Circular: RBI under Risk Assessment Report (RAR)-2020 has made certain
observation in deposit accounts as follows:

1) Additional rate of interest is extended to Non-individual customer’s i.e.

Companies /Trust/Societies/Firms.
2) Interest Rate Table modified in NRE/NRO accounts in certain cases.

Branches/Regional Offices are advised to take utmost care in creating the CIF IDs
for Non-Individual customers and wherever the CIF IDs have been created
wrongly Branches to rectify the same with immediate effect.

Heading of Circular: Introduction of Legal Entity Identifier for Large Value

Transactions In NEFT/ RTGS Payment Systems
(Ref. ITEC /23/2020-21 dated 25.02.2021, Digital Banking Department)

Gist of Circular: RBI has decided to introduce the LEI system for all payment
transactions of value 50 crore and above undertaken by entities (non-Individuals)
using Reserve Bank-run Centralised Payment Systems viz. Real Time Gross
Settlement (RTGS) and National Electronic Funds Transfer (NEFT).
Accordingly, entities can obtain LEI from any of the Local Operating Units (LOUs)
accredited by the Global Legal Entity Identifier Foundation(GLEIF), the body

Page 26 of 46
tasked to support the implementation and use of LEI. In India, LEI can be
obtained from Legal Entity Identifier India Ltd. (LEIL) (https:/jwww.ccilindia-
lei.co.in), which is also recognized as an issuer of LEI by the Reserve Bank under
the Payment and Settlement Systems Act, 2007.
Branches are advised to communicate entities of the Bank who undertake large
value transactions (50 crore and above) to obtain LEI in time. Branches should
include remitter and beneficiary details with LEI information in RTGS and NEFT
payment messages of all transactions of 50 crore and above and the changes
will come into effect from 1st April 2021.

Heading of Circular: Introduction of Offsite Audit Tool

(Ref. Misc /150/2020-21 dated 31.03.2021, Inspection Department)

Gist of Circular: Offsite Audit by controlling offices for the purpose of

monitoring/ functioning of Branches through periodic reports by way of finding
deficiencies in critical areas which will improve the bank MIS, asset quality and
better control for branch functions. Offsite Audit is not a substitute to COIR, but
it is an extended arm to help auditors for checking the system based data
compliance effectively and save the audit man-days.
The Offsite Audit tool will generate reports on both financial & non-financial
Transactions. Reports will be generated by the newly procured Offsite Audit
Application and it is to be attended by Branches, ROs & Zonal Audit Offices.

PROBE - Perpetual Remote Offsite Audit for Branch Excellence

The Offsite Audit System (PROBE) is a specialized system which will execute the
framed set of rules that are expected to be adhered. The purpose behind of
introducing the OAS is basically to reduce the onsite audit time at branches and
also continuous monitoring of Risk areas and thereby improve the compliance
level. Eventually it will reduce the onsite audit workload in a systematic manner
without compromising the quality of audit.
OAS is a forward s t e p in harnessing IT resources for a continuous scrutiny of
deficiencies by accessing the d a t a from C B S server. The package is user
friendly and its advantages should be fully harvested for realising the holistic
b e n e f i t s it confers on the organization especially as it will be implemented
in tandem with the Risk Based Internal Audit (RBIA)
Heading of Circular: Mandatory Leave Policy -Modifications
(Ref. EST /88/2020-21 dated 11.03.2021, HRMD-IR Section)

Gist of Circular: Our Bank has implemented the Mandatory Leave Policy which is
applicable to all staff members holding Sensitive positions in the Bank. The salient
feature of the Policy was last circulated vide our circular no. EST/71/2019-20
dated 06.08.2019. Further to the same, the following modification was carried out
in the Policy with the approval of the Board.
Availment of leave by staff members is included as a condition for complying
with the requirement to keep the staff holding Sensitive Posts away from their desk
for the purpose of Mandatory Leave.

Page 27 of 46
Heading of Circular: Master Direction on KYC - Central KYC Registry -Roll out of
Legal Entity Template and other changes
(Ref. MISC /119/2020-21 dated 01.02.2021, KYC-AML Dept)

Gist of Circular: The CKYCR is now fully operational for individual customers in our
Bank and branches are advised to ensure that all mandatory fields are
incorporated / captured in FINACLE for both new as well as existing Legal Entity
accounts and be in readiness to upload the KYC data from 01.04.2021.
The necessary changes in the standalone CKYC application is being made and
shall be rolled out shortly to facilitate branches to upload the KYC data of Legal
Entities (LEs) from 01.04.2021.
Branches to upload the KYC data of both Individual as well as Legal Entity
accounts opened prior to 01.01.2017 and 01.04.2021, respectively, to CKYC
Registry as and when periodic updation (Re-KYC) is done for the accounts.

Heading of Circular: Guidance to the branches for using newly introduced menus
for updating DTAA, LDC and Group ID for TDS deduction in respect of Interest on
Deposits
(Ref.Transient Series Circular No.25 File 7(d) of 2020-21 Dt 20.01.2021KYC-AML Dept)

Gist of Circular: At present, TDS is being deducted at Central Office level for
interest on Deposits, Senior Citizens' Saving Scheme (SCSS), RBI Bonds, Staff
Salary, LFC/LTC for staff members, TDS on lOB Retirees' benefits, TDS on Staff
Pension and TDS on Central and State Government Pension and the same is
remitted centrally. TDS on vendors and other payments have been recovered
through menus provided to the branches and remitted by TCPC and quarterly
TDS returns for all the TDS payments are being filed by TCPC, Central Office. The
process flow of introduced menus for updating DTAA, LDC and Group ID for TDS
deduction in respect of Interest on Deposits is explained in this circular. Branches /
RO are requested to go through the contents of this circular and comply with the
same.
Heading of Circular: Personalised Cheque Books to be sent to Customers directly
(Ref.Misc/129/2020-21 Dated 15.02.2021, Banking Operations Dept)

Gist of Circular: It has been proposed to deliver the PCBs directly to the
customers' address through Speed Post, thereby rendering effective customer
service. The modified procedure for delivering PCBs directly to the customers’
address is detailed in the operational instructions.
Branches to ensure that the address is correct in HBRTI and the mobile number
and address of the customer is updated in CIF before initiating the cheque book
request. ROs/ Branches are advised to sensitise the staff regarding the
modifications in PCBs to render effective customer service.

Heading of Circular: Preventive Vigilance - Need of the Hour - Adherence to

Systems and Procedures - Staff Accountability in Credit area
(Ref.Misc/147/2020-21 Dated 29.03.2021, Fraud Risk Management Cell – Insp Dept)

Page 28 of 46
Gist of Circular: Risk taking is an integral part of banking business. During the
course of business it is likely that some of the accounts may slip to non-performing
Asset category for the reasons beyond our control. In such, circumstances
/cases bank is taking a lenient view on the Officials who have appraised the
credit proposal and/ or Officials who had sanctioned the credit facility and
who are responsible for disbursement and monitoring of the credit facility even
when certain procedural deviations are identified on the part of the Officials
concerned.

However we have come across a few instances where the Officers have failed to
adhere to the systems and procedures while extending Credit facilities. We have
also come across instances of failure on the part of Officers in monitoring the
accounts leading the accounts becoming Non performing in nature
warranting investigation under Staff accountability Policy for non performing
Credit.

To have uniform treatment and to improve the level of confidence in the minds of
Branch Managers and other Officials at the branches and Regional offices, Bank
has come out with a Staff accountability Policy in case of Non Performing Credit
vide Circular No MlSC/81/2020-21 dated 23.11.2020.

We wish to make it clear that those actions which are bonafide in nature and
done in the normal course of business and in the best interest of the institution,
will always be protected. However it should also be very much clear that
malafide actions and fraud committed by staff members will not be tolerated
and severe action will be initiated against the perpetrators of the irregularities
without any exception.

Heading of Circular: Revised Procedure for Issuance of Identity Certificate to

Obtain Passport
(Ref. Transient Series (file 7F Circular No. 151 of 2020-21 dated 01.03.2021)

Gist of Circular: Hitherto, IC or NOC was being issued to the members, at their
request, while applying for passport after obtaining vigilance clearance and
submission of affidavit, as the case maybe, by HRMD- ROs/CO. It has now been
decided that hereafter:
1. RO and CO can issue NOC to the staff members for obtaining passport after
getting vigilance clearance from Central Office.
2. Identity certificate for passport shall be issued to the members, at their specific
request, on account of extreme medical or other emergencies only, after
obtaining vigilance clearance and with the prior permission of HRMD - CO.
All other terms & conditions specified in our earlier circulars no. 107 of 2016-2017
dated 18.01.2017 and No. 43 of 2018-19 dated 02.08.2018 remain the same.

Page 29 of 46
Heading of Circular: Staff Rotation Policy for Officials posted in Sensitive Posts
(Ref. EST/89/ 2020-21 dated 23.03.2021 issued by HRMD-IR Section)

Gist of Circular: Our Bank has implemented the Staff Rotation Policy for Officials
posted in Sensitive Posts and the salient features of the policy was circulated
vide our circular no. EST/61 /2019-20 dated 20.04.2019. Further to the same,
some modifications are made in the Policy with the approval of the Board.
This policy is applicable only for Officers posted in sensitive areas which are
detailed in the policy. However, any other officer not included in the list of
Sensitive Posts may also be subjected to rotation, at the discretion of the
Management as decided from time to time.
Regional Heads are advised to strictly follow the guidelines given in the Policy
and instruct Branches working under their control for implementation of the
instructions contained in the Policy and submit a consolidated compliance report
directly to Vigilance Department, Central Office on or before 15 July every year.
Department Heads of Central Office should submit their compliance report to
GM (HR) on or before 15 July every year.

Heading of Circular: SOP-TCS payment for providing technology solution to

implement Financial Inclusion
(Ref. CO/FID/07/2020-21 dated 20.02.2021 issued by Financial Inclusion Dept)
Gist of Circular: Our Technology service provider M/s TCS Ltd is generating bills on
Quarterly basis for their services and the same is being paid at Central Office
every quarter. As Engagement/replacement/termination of BC services is vested
with Regional Offices, a new SOP for payment to M/s TCS for every quarter is to
be followed by the RO and the same is elaborated in this circular. Branches / RO
are requested to go through the contents of this circular and comply with the
same.
Heading of Circular: Strengthening of Grievance Redressal Mechanism in Banks
(Ref. Misc/123/2020-21 dated 03.02.2021 issued by Customer Service Dept)

Gist of Circular: RBI has issued a circular No. RBI/2020-21/87 CEPD.CO.PRD. Cir.
No.01/13.01.013/2020-21 dated 27.01.2021 based on the Statement on
Developmental and Regulatorv Policies issued as part of the Monetarv Policy
Statement dated December 4,2020.wherein it was stated that with a view to
strengthen and improve the efficacy of the grievance redressal mechanism of
banks and to provide better customer service it has been decided to put in
place a comprehensive framework comprising certain measures to ensure
satisfactory customer outcomes and greater customer confidence. Effective
grievance redressal should be an integral part of the business strategy of the
banks. Timely and proper handling of grievance is the main objective for
Grievance handling mechanism. A dissatisfied customer with the Branch/Bank's
response has an option to escalate his grievance to next level like RBI/Banking
Ombudsman/Ministry etc. It is however evident from the increasing number of
complaints received from the Offices of Banking Ombudsman (OBOs) that
greater attention is warranted by the bank in this area.

It is our prime responsibility to handle the customer query and grievances with
utmost care on priority basis. So it is to be ensured that all complaints are handled
effectively and within specified time frame. Branches should be proactive and

Page 30 of 46
Regional Offices should extend their support to provide better customer service.
Bank staff must put in little more effort and little extra care, so that bank can
avoid escalation of complaints to next level.

Page 31 of 46
 B: CIRCULAR CORNER-RECOVERY

Compiled by: Padamjeet Dahiya

Senior Manager (Faculty), Staff College

Heading of Circular: ONLINE ALLOCATION OF SMA ACCOUNTS TO STAFF BY RO/CO

FOR EFFECTIVE FOLLOW UP
(Ref. ADV /156I 2020-21 dated 26.02.2021 issued by Credit monitoring
Dept
Gist of Circular:
In order to improve the efficacy in follow up of SMA accounts and recording
of the action taken by Branches/ROs/CO, we have made certain changes
in our SMA follow up portal which are depicted below.
New features are added in
portal: -
• Now dynamic data is available on daily basis in portal and any
movement in SMA account is being updated on daily basis.
• All SMA accounts will be allotted to the staff attached to the Branches
(designated as Collection Officer) by RO CRMD.
• However, all the staff can l o g i n on SMA portal a n d see the SMA
data o f their respective Branches/RO as the case may be.
• There will be a time period as per SOP (enclosed) for collection actions,
after which accounts will be escalated to next layer at RO for
information/follow up. Collection officers a t RO can enter their
c o m m e n t s /suggestions to Branches. Similarly, escalation will take
place f r o m RO to CRMD-CO level and comments/ i n s tru cti o ns can
be updated at CO level too on specific/all SMA accounts
• There will be suggested actions, based on DPD of the accounts, to be
undertaken by collection officers at Branches. Collection officer to
select the action taken from drop down list and t o update
comments t h e r e i n . However, any other action a s deemed fit by the
Branch may also be taken and recorded in portal.
• Automatic generation of SMS/IVR call to SMA borrowers depending
upon the SMA status as mentioned i n annexure 1 . It is in addition t o
the action t a k e n by the collection officers
• In case of absence/change of collection officer at Branches/ROs,
another collection officer can be assigned by the assigning authority
at branch/ROs.
• Daily position of SMA accounts a n d follow up status will be
communicated to the Branches/RO on their mail.
• Top 5 leader Branches and top 5 laggard Branches in the region as well
as pan India will be shown in Branch rating report.

Page 32 of 46
SMA follow up is a crucial part in containing slippages. Reduction in SMA will
definitely have a cascading effect on SINPA and every ounce of effort
towards SMA follow up and recovery will result in lesser pain handling SINPA.
Regional Officers are advised to utilize the full potential of SMA portal to recover
dues from SMA accounts and ensure prevention of slippages.

Heading of Circular: legal decision affecting banker: Whether Coffee

Plantation is an agricultural land under Section 31(i) of the
SARFAESI ACT and as such exempted from the provisions of
SARFAESI Act,2002
(Ref. Transient Series File(E) Circular of 2020-21 dated 22.03.2021 issued
by Law Dept
Gist of Circular: The judgment given by honourable court of Karnataka is as
follows:
The land on which plantation crops are raised (coffee in the instant case), if
mortgaged or given by way of a security to a financial institution t o o b t a i n
a credit facility, whether for an agricultural purpose or for a non-
agricultural purpose, the said security could be enforced and Section 31 (i)of
SARFAESI Act does not apply to such land. The expression "agricultural land" in
section 31 (i) of the SARFAESI Act does not include land on which plantation
crops are grown namely, cardamom, coffee, pepper, rubber a n d t e a as
defined in Section 2(A) (25) of Land Reforms Act.
This judgement is applicable in the State of Karnataka wherever Bank would
like to enforce land with Plantation(crops) as security u n d e r S A R F A E S I Act.
Other States wherever such lands with plantations crops are under our
mortgage, we may invoke SARFAESI proceedings in consultation with the
lawyers after checking whether similar protections are available under the
state laws and recovery actions may initiated accordingly

Heading of Circular: Standard Operating Procedure on Relieving

Officer Certificate

(Ref. MISC/ 137 /2020-21 dated 2.03.2021 issued by Inspection Dept

Gist of Circular:
The duties and responsibilities of Relieving Officer (incoming First Line
Manager) and the Relieved Officer (outgoing First Line Manager) and the
related operational instructions are as below:
Operational Instructions:

Page 33 of 46
l. The Relieved Manager should render necessary assistance to the
Relieving Manager f o r smooth conduct of verification of various
records, loan documents, assets and liability of the Branch etc. and
enable him to submit ROC (in the Revised Format- ROC- Part-B). The ROC
revised is consist of Part- A and Part- B. The Relieved Manager should ensure
that the relieving Manager is provided with records required for submission
of ROC- Part B. The Relieving Manager must verify and confirm that all the
loan documents are available as per FINACLE outstanding statement.
2. Relieved Manager also required to submit ROC in revised F.278 Part -A. The
relieved Manager must prepare the ROC Part-A meticulously in triplicate
and submit the First copy to Inspection Department, Regional Office and
hand over the second copy to Relieving Manager and third copy he/she
can retain.
3. Relieving Manager should report his /her reporting at the Branch
immediately to Regional Office. If he feels that more time is required for
taking over than what is stipulated, special permission from Regional
Manager must be taken in writing, giving valid reasons for the same.
4. While preparing ROC Part-B (Revised), the Relieving Manager should strictly
adhere to the followings:
a) Relieving Manager should list out irregularities in separate sheets section
wise at RO viz., Audit sections, premises, Advances Credit Monitoring etc.
b) Relieving Manager should prepare ROC in revised F.278 Part-Bin
triplicate and submit the First copy to Inspection Department, Regional
Office and hand over the second copy to Relieved Manager and third
copy he/she can retain as office copy.
c) Wherever serious irregularities are noticed, a comprehensive Report
encompassing, among other aspects, comments of Relieved Manager
on such irregularities, should be immediately submitted to Regional
Manager and General Manager (Inspection), Central Office and
outgoing Manager shall be relieved after obtaining RM's Permission only.

The Relieving Manager should verify all the functional aspects of Branch
including the followings:
1. All loan Documents and enforceability of all Loan Documents and
compliance with regard to terms and conditions of sanctions in
respect of all the borrowal accounts, are to be verified. If the missing
documents pertaining to the previous manager are observed and
the present manager is not reported in ROC and the present
manager will be held responsible.
2. Physical verification of Jewel pledge to the bank is to be done by
Incoming Manager with t h e help of appraiser. The Jewel
p o c k e t s available in the Vault, must tally with the outstanding as
per FINACLE outstanding and as per Jewel Movement Register as
well. If any serious irregularity is observed, the same is to be reported
in the ROC and also should be brought to the notice of Regional
Manager.

Page 34 of 46
 3. Physical existence of all Furniture and Fixture including Computer
systems are to be verified with, Furniture and fixture statement.
4. Upkeep of records viz., Books, vouchers, file, Registers etc.
5. Joint Custody item with joint custody register.
6. In addition to the above, the Relieving Manager has to verify I
comment on accounts where mortgage/hypothecation
formalities are incomplete, advances/CC limits are to be
renewed/reviewed, advances proposals are pending, CGTMSE
and death claims are pending, any violation of statutory or other
guidelines, Quick mortality accounts and present status, Red
flagged accounts, pending compliances of CAF, RBIA,
Concurrent Audit, short Inspection, Special Reports, FRCs, LFAR etc.
The Relieving Manager has to prepare ROC Part-B meticulously,
which covers all above mentioned areas.

The Relieving Manager should then forward ROC, comprising Part-A & Part-
B (if ROC- Part -A is received from outgoing Manager) to Regional Office
within three days of completion of take-over time allotted. The incoming
Manager need not wait for ROC Part-A if it is not received from outgoing
Manager. The Incoming Manager has to submit ROC as per time limit. It is
responsibility of Inspection Department, Regional office to get ROC Part- A
also from outgoing Manager and scrutinize the ROC (both parts together).

The Relieving Manager must note that Relieved Manager is to be relieved

only after obtaining prior permission of Regional Manager. Relieving
Manager and Relieved Manager should ensure submission of ROC to RO
within 15 Days from date of reporting of Incoming Manager. The Relieving
Manager has to send the ROC along with list of Irregularities to
Inspection Department, Regional office.

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 B: CIRCULAR CORNER-DIGITAL BANKING

Compiled by: Jeetendra Kumar Panda

Senior Manager (Faculty), Staff College

Heading of Circular: Best Practice of Internet Banking

(Ref. ITEC/26/2021, dated 29.03.2021)

Gist of Circular:
1. Always use your own computer or mobile with genuine and updated operating
system and antivirus solution to access Internet banking application.
2. Avoid using Public WIFI and internet cafes for internet banking.
3. Never access the internet banking site through a link received via mailers.
4. Never store your user name and password on the internet browser.
5. Change your password at regular intervals and ensure it is a strong one with
combination of alpha numeric characters.
6. Always type the proper URL starting https:// in the browser or user the verified
Bank’s application for logging into your net banking account.
7. Always logoff after completing online banking tasks.
8. Never share your password over the Internet (by email) and reveal OTP to any
Third party person.
9. Check for the padlock in the lower right of your browser window (it indicates a
secure site). You can click on this padlock to verify the site owner.
10. Always check and review your bank account statement at Regular intervals.

Heading of Circular: Guidelines on resolution- of complaints of ATM and

fraudulent transactions Importance of evidences in deciding Bank's liability.
(Ref. ITEC/20/2021, dated 05.01.2021)

Most of the ATM transaction related complaints result from:

a. Improper house-keeping like not loading adequate cash, not keeping Receipt/
Journal other stationery items in ATMs/CRs, not maintaining ATM rooms clean and
b. Non-preservation/ non-submission of proper evidences like relevant CCTV footages.
To reiterate all the cases where bank pays compensation to customers or non-customers
under liability shift, resulting from/ on account of non-submission of proper documents in
time by branches/vendors, and non-preservation/ non-submission of proper evidences
including CCTV footages.

Branches are advised to strictly follow the below mentioned aspects to protect the
Bank's interest:
a) Registration of Customer Mobile Number and Sending SMS Alert by Bank:
Branches shall pursue the customers to register their mobile number for SMS
alerts, for all transactions.
b) Preservation of CCTV Footages: Branches have to mandatorily preserve the
CCTV footages related to disputed ATM/CR transactions where the footages
management is lying with them. In the case of vendor managed ATMs/CRs,
branches should ensure that footages are preserved by taking up with the
vendors or concerned stakeholders.

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 Additionally, proper storage of the CCTV footages for all transactions up to 90
days from the date of such transaction should be available at any point of
time. CCTV footages have to be preserved permanently, for the transactions
where customer raise some dispute and/or branch lodge complaint on the
same.
c) Loading of Paper in the ATMs/ CRs: Branches should ensure that the paper rolls
are loaded in the machine to print the receipt for the transactions. Sufficient
stock of paper rolls should be maintained in the Branches to ensure smooth
functioning of ATMs/CRs.
d) Loading of Cash in the ATMs/ CRs: It is observed that cash loading is not done
scientifically or adequately or in time at few sites, resulting in more number of
complaints. Sufficient care should be taken to load cash based on the usage
pattern, including the CRs.

Heading of Circular: Debit Card – Contactless transactions relaxation in

requirement of additional factor Authentication (AFA):
(Ref. ITEC/21/2021, dated 25.01.2021)

As directed by RBI, w.e.f from 01.01.2021 contact less transaction limit has been
increased to 5000/- per transaction, hence transaction upto Rs. 50000/- can be
done without PIN in PoS (contact less terminals) and more than 5000 AFA is
required.

Heading of Circular: Debit Card – Digital Channels for Lead Generation (For
existing and new customers)
(Ref. ADV/143/2021, dated 20.01.2021)

Bank has launched lead generation through missed call, SMA and IVRS (call
center) four our home loan, Vehicle loan and clean loan facilities.

Missed Call Number:

SMS Facility:

IVRS (Interactive Voice Response System) Facility:

Customers can also apply for Home/ Pushpaka/ Clean loans through IVRS facility
dialling 8657935940. The pre-recorded voice instructs to press 1 for Home loan, 2
for Vehicle loan and 3 for Clean loan.

Heading of Circular: Debit Card – Introduction of Revamped HGSTOTH menu:

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(Ref. Transient Series 24, file 7d of 20-21 dated 13.01.2021)

With a view to streamline the manual collection of GST on certain transactions

which are done by branches/ ROs/ CO Departments/ Other offices and to
comply with the various changes in the GST act from time to time, the HGSTOTH
menu has been revamped.
For operational details please visit the above mentioned circular.

Heading of Circular: Debit Card –Protection from fall back transactions in ATMs to
prevent card skimming and data compromise:
(Ref. ITEC/25/2020-21 dated 17.03.2021)

Fallback Transaction:
 
 
When a Chip Card presented at a Chip enabled Terminal, ideally the transaction
should be completed as a Chip based transaction. If the transaction in this
scenario cannot be completed as Chip based transaction due to various reasons
as detailed below, the transaction shall "fall back" to a magnetic stripe based
transaction and is sent to the Issuer bank for Authorization.
 
 
Transaction can enter in Fallback scenario in below cases:
1. User pulls the card from the ATM card slot when the transaction is still under
process.
2. There is dust on the Chip and EMV card reader is unable to read the Chip
due to dust.
3. The Chip is damaged.
4. When EMV card reader is unable to read the Chip due any other reason
and enters fall back scenario and reads Magnetic Stripe of the card.

Action taken to secure the transactions:

Bank has taken the following actions to secure the debit card transactions:

1. All the Magnetic stripe cards have been blocked for operation after giving
due notices to the customers
2. Suitable instructions given to ROs/Branches to issue the pending EMV
chip cards for securing the card transactions
3. Restrictions placed to decline Fall Back transactions (our bank cards used
in other bank ATMs in fall back mode) to mitigate the risk of card
cloning/data compromises.
4. Further to enhance security of card transactions, various security features
introduced as per bank's circular No. ITEC/190-2019-20 dated 13.03.2020.

Role of Branches in securing the card transactions:

-
1. Branches to deliver all the EMV chip cards, pending with them, to
customers
2. Customers to be educated that data stored in the magnetic stripe portion
is vulnerable from the security point of view.
3. Branches should periodically verify the physical stock of personalised cards
which are pending for delivery to the customers. Customers are to be
contacted to advise them to collect the cards from the branches by
submitting their old magnetic stripe cards. If the customer does not submit
the old magnetic stripe card, an undertaking letter in this regard to be

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 obtained declaring that he will submit the card to the bank once it is
traced.
4. Any leftover cards (Personalised or lnsta) whether magnetic stripe or EMV
which remain undelivered, despite the best efforts of the branches, due to
some reason or other, should be kept in the dual custody, safely at the
branch itself till delivery or expiry of the card as these are security items.
5. Mandatorily updating the mobile numbers of the customers· wherever not
available in their CIF ID master as advised by Central Office vide earlier
circulars.

Heading of Circular: Debit Card –Standard Operating Procedure (SOP) reporting

of cyber payment frauds:
(Ref. MISC/121/2020-21 dated 02.02.2021)

Cyber payment frauds are major risks and a well-developed Fraud risk
management procedure is needed to address the cyber payment fraud issues
for fraud prevention/ investigation and reporting.
The detailed Standard Operating Procedure for reporting of frauds and
subsequent follow-up actions are detailed in the above circular.

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