E-GYAN

STATE BANK LEARNING CENTER MASULIPATNAM

STATE BANK LEARNING CENTER MASULIPATNAM

STATE BANK LEARNING CENTER

MASULIPATNAM

E-GYAN, PART-9
May-2014

FOREWORD

Alexander the Great, after having conquered half of the world, was still very sad.
When asked for the reason, he said, I never knew success could be such a failure.
In this context, success was really a failure. Success made the seeker look outside
oneself for satisfaction. He did not look at who was the seeker. The seeker was
busy seeking something outside. It is like an old lady who was searching for a coin
under the street light. She has dropped it inside her hut, but decided to search
under the light because it was dark inside the hut.

Only when you have learned to look within will real joy opens. Discovering the
inner source of joy is the real success. In the state of deep sleep all of us are happy
and that happiness comes not from outside but from within.
Our small contribution to the SBI community in the direction of creating awareness
is the current release of e-GYAN for May, 2014 which emphasizes on conceptual
clarity, process integrity and procedural consistency in the field of day to day
banking practices and explores the causes and consequences of various typical
situations.
Hope you like it!
We deeply acknowledge the inspiration derived from our Deputy General Manager &
Circle Dev Officer Shri.Radhakrishna Rayabharam , Asst General Manager (HR)
Shri. R.S.N. Murthy and Chief Manager (L&D) Shri. M.Saibaba which resulted in
coming out with the e-editions.

D.SYAM PRASAD
ASSISTANT GENERAL MANAGER
STATE BANK LEARNING CENTER
MASULIPATNAM

e-gyan by SBLC, Masulipatnam, May, 2014

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PRIORITY SECTOR LENDING TARGETS AND CLASSIFICATION

(As on February 01, 2014)
Compiled by Sri M Sai Chakradhar, Chief Manager (Training))
1. What is meant by Priority Sector?
Priority sector refers to those sectors of the economy which may not get timely and adequate
credit in the absence of this special dispensation. Typically, these are small value loans to
farmers for agriculture and allied activities, micro and small enterprises, poor people for
housing, students for education and other low income groups and weaker sections.
2. What are the different categories under priority sector?
Priority Sector includes the following categories:
(i) Agriculture
(ii) Micro and Small Enterprises
(iii) Education
(iv) Housing
(v) Export Credit
(vi) Others
3. What are the Targets and Sub-targets for banks under priority sector?
Domestic commercial banks / Foreign Foreign banks with less than 20
banks with 20 and above branches (As branches (As percent of ANBC
percent of ANBC or Credit Equivalent of or Credit Equivalent of OffOff-Balance Sheet Exposure, whichever Balance
Sheet
Exposure,
is higher)
whichever is higher)
Total Priority Sector 40
32
Total agriculture
18
No specific target.
Advances to Weaker 10
No specific target.
Sections
Categories

4. What constitutes 'Direct Finance' for Agricultural Purposes?

(i) Loans to individual farmers [including Self Help Groups (SHGs) or Joint Liability Groups
(JLGs), i.e. groups of individual farmers] engaged in Agriculture and Allied Activities, viz., dairy,
fishery, animal husbandry, poultry, bee-keeping and sericulture.
(ii) Loans to Corporates including farmers' producer companies of individual farmers,

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Page 3

partnership firms and co-operatives of farmers directly engaged in Agriculture and Allied
Activities, viz., dairy, fishery, animal husbandry, poultry, bee-keeping and sericultureup to an
aggregate limit of `2 crore per borrower.
(iii) Loans to small and marginal farmers for purchase of land for agricultural purposes.
(iv) Loans to distressed farmers indebted to non-institutional lenders.
(v) Bank loans to Primary Agricultural Credit Societies (PACS), Farmers Service Societies
(FSS) and Large-sized Adivasi Multi Purpose Societies (LAMPS) ceded to or managed/
controlled by such banks for on lending to farmers for agricultural and allied activities.
5. What constitutes 'Indirect Finance' to Agriculture?
(i) If the aggregate loan limit per borrower is more than `2 crore in respect of para. (4) (ii) above,
the entire loan will be treated as indirect finance to agriculture.
(ii) Loans upto `5 crore to Producer Companies set up exclusively by only small and marginal
farmers under Part IXA of Companies Act, 1956 for agricultural and allied activities.
(iii) Bank loans to Primary Agricultural Credit Societies (PACS), Farmers Service Societies
(FSS) and Large-sized Adivasi Multi Purpose Societies (LAMPS).
6. What constitutes Micro and Small Enterprises under priority sector?
Bank loans to Micro and Small Manufacturing and Service Enterprises, provided these units
satisfy the criteria for investment in plant machinery/equipment as per MSMED Act 2006.
Manufacturing sector Investment in plant and machinery
Enterprises
Micro Enterprises
Do not exceed twenty five lakh rupees
Small Enterprises
More than twenty fivelakh rupees but does not exceed
five crore rupees
Service
Industry Investment in equipment
Enterprises
Micro Enterprises
Does not exceed ten lakh rupees
Small Enterprises
More than ten lakh rupees but does not exceed two
crore rupees

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7. What is the loan limit for education under priority sector?

Loans to individuals for educational purposes including vocational courses upto `10 lakh for
studies in India and `20 lakh for studies abroad are included under priority sector.
8. What is the limit for housing loans under priority sector?
Loans to individuals up to `25 lakh in metropolitan centres with population above ten lakh and
`15 lakh in other centres for purchase/construction of a dwelling unit per family excluding loans
sanctioned to banks own employees.
9. What is included under Weaker Sections under priority sector?
Priority sector loans to the following borrowers are considered under Weaker Sections
category:(a) Small and marginal farmers;
(b) Artisans, village and cottage industries where individual credit limits do not exceed `50,000;
(c) Beneficiaries of Swarnjayanti Gram Swarozgar Yojana (SGSY), now National Rural
Livelihood Mission (NRLM);
(d) Scheduled Castes and Scheduled Tribes;
(e) Beneficiaries of Differential Rate of Interest (DRI) scheme;
(f) Beneficiaries under Swarna Jayanti Shahari Rozgar Yojana (SJSRY);
(g) Beneficiaries under the Scheme for Rehabilitation of Manual Scavengers (SRMS);
(h) Loans to Self Help Groups;
(i) Loans to distressed farmers indebted to non-institutional lenders;
(j) Loans to distressed persons other than farmers not exceeding `50,000 per borrower to
prepay their debt to non-institutional lenders;
(k) Loans to individual women beneficiaries upto `50,000 per borrower;
10. What is the rate of interest for loans under priority sector?
The rate of interest on various priority sector loans will be as per RBIs directives issued from
time to time, which is linked to
e-gyan by SBLC, Masulipatnam, May, 2014

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Top 10 economic challenges that Mr Modi Govt. faces

Compiled by: S.Sivajee,Mgr(Trg).
Prime Minister Mr Narendra Modi has promised to unblock stalled investments in power,
road and rail projects to revive economic growth that has fallen to a decade low of
below 5 per cent.
Here are the list of Top 10 economic challenges that Mr Modi Govt. faces:
Goods and Services Tax (GST):
India's most ambitious indirect tax reform would replace existing state and central
levies with a uniform tax, boosting revenue collection while cutting business
transaction costs. GST, which could boost India's economy by up to two
percentage points, has so far faced resistance from various states, including
those governed by the BJP who fear a loss of their fiscal powers. The BJP aims
to address state concerns and implement GST in an "appropriate timeframe".
The Congress party would back the reform in opposition, a senior party member
told Reuters earlier this month. The reform needs broad backing because it
requires a change in the constitution.
Central bank policies:
A Reserve Bank of India panel in January proposed key changes including
targeting consumer price inflation and making a committee responsible for
monetary policy, and not the RBI Governor alone. This would require changes to
the RBI Act. The BJP top brass has not spoken widely on the issue, but it will
likely be a tough sell for RBI Governor Raghuram Rajan. He has the backing of
some global agencies like the International Monetary Fund. Mr Modi's
government may also look to eventually separate the debt management function
from the RBI, on the grounds that debt management sometimes conflicts with the
central bank's monetary policy stance.
Privatisation:
The new government is likely to focus on selling its holdings in state-run firms
that could raise much-needed revenues to trim India's ballooning fiscal deficit and
boost economic growth. The rising stock market helped New Delhi raise more
than $3 billion (Rs. 18,000 crore at 60 rupees per dollar) via stake sales in the

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Page 6

fiscal year to March 31 - but that was only a third of the government's original
target. The outgoing government announced plans to raise Rs. 56,900 crore
through asset sales in 2014-15. This could help achieve a lower fiscal deficit
target of 4.1 per cent of GDP. These estimates may be revised by the next
government.
Subsidies:
Mr Modi's government needs to examine how it subsidises basic commodities if it
is to contain the fiscal deficit and avoid a ratings downgrade. Subsidies cost an
estimated 2.2 per cent of India's GDP in 2013-14. The BJP in its manifesto said it
will seek greater fiscal discipline without compromising on the availability of funds
for development.
Labour:
The BJP wants to reform labour laws to boost job-intensive manufacturing and
create as many as 1 crore jobs a year for young Indians entering the workforce.
Changing the law would be politically tricky, though, and Mr Modi may seek to
encourage competition between India's states to boost job creation.
Defence:
More foreign investment in defence would help India reduce imports, modernise
weapons systems and speed up deliveries of hardware it needs for operations
and training. India, the world's biggest arms importer, now allows 26 per cent
foreign ownership in defence, and proposals to exceed that limit are considered
only for state-of-the-art technology. The BJP has said it would allow some
greater foreign investment in defence industries.
Insurance:
Attempts to raise the cap on foreign investment in India's $45 billion (Rs. 2.70
lakh crore) insurance sector, to 49 per cent from 26 per cent, have met
resistance from employees at state-controlled insurers and their political backers.
A BJP leader said in March the party had held talks with Congress to break the
deadlock.

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Banking:
The new government will need to help state-run lenders battling rising bad loans
caused by the slowing economy, rising interest rates and project delays.
Stressed loans in India - either bad or restructured - total $100 billion (Rs. 6 lakh
crore), or about 10 per cent of all loans. Fitch Ratings expects that ratio to reach
14 per cent by March 2015. Rising bad loans threaten to choke the gradual
recovery in Asia's third-largest economy, according to the OECD. The interim
budget in February set aside Rs. 11,200 crore to help the sector meet key capital
ratios, but analysts say more money is needed.
Power:
A BJP-led government may implement the so-called Gujarat model of distributing
electricity that has been widely praised for delivering reliable 24-hour power
supplies in the state. Mr Modi provided different power feeds to farmers,
households, and companies instead of a uniform feed in his home state.
Gas pricing:
In January, India notified the new gas pricing formula that could double the prices
of locally produced gas from April 1, but the poll regulator stopped the
government from raising the prices until the elections are over. Reliance
Industries and its partners BP and Niko Resources last week issued a notice of
arbitration to the government seeking implementation of higher gas prices. The
BJP-led government may review the formula on the lines suggested by a senior
party leader last year and announce the date of implementation of new prices.

** ** **

Source : NDTV Profit .

e-gyan by SBLC, Masulipatnam, May, 2014

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INDIAN BANKING AT CROSSROADS

CHALLENGE OF RISK MANAGEMENT FROM GLOBALISATION TO
FINANCIAL INCLUSION
Compiled By Sri. R.Prabhakara Rao, Manager (Training)

Most business activities and operations are driven by considerations of

returns or profitability.

However t h e

search

for returns exposes the

businesses to risks. Also risks escalate and multiply with returns sought
banks are no different; only the element of riskiness in the banks business
operations

is

higher

as they

not

only carry

out

and

their operations with

borrowed money and with high leverage but also attempt to provide a vast
range of financial services.

Banks perform multifarious functions. However

financial intermediation and

maturity transformation are by far the most significant activities performed by

banks.

Banks essentially have a liquid liability profile, as against an illiquid

asset profile, which makes them vulnerable to runs and in this process
alone, they generate or are

exposed to different types of risks.

Credit,

market and operational risks are t h e three primary risks that have a substantial
bearing on the performance of banks.

There are a number of other types of

risks, emanating both from within and without that the banks are exposed to in
their day to day functioning.

As the banks perform this role of intermediation in fiduciary capacity, ensuring

a balance between the risks and returns assumes significance and the effort
towards achieving this balance can b e referred to as risk management. The
various financial crisis of the past brought to the fore the
robust

risk

management

practices

banks. Progressive technological

e-gyan by SBLC, Masulipatnam, May, 2014

in

importance

financial institutions

of

including

developments and advanced modelling

Page 9

techniques have, however, rendered risk management a highly complex and

sophisticated discipline lately.
Risk

management can

be

defined as a function of risk

measurement, monitoring and

appropriate

to

the

commensurate

risk

with

reporting to ensure that the returns are

undertaken

the

identification,

risk

and

appetite

the

risks

undertaken

are

and

risk

tolerance.

Risk

management has to ensure that the bank holds adequate capital and
reserves to make sure that its solvency and stability are not threatened,
both in the short and the long run.

As a response to the global financial crisis, a package of reforms collectively

referred

to as Basel

III

has been unleashed

as part

of the global

regulatory effort to enhance the soundness and resilience of the banking

system. These reforms focus on capital, liquidity, leverage and macro prudential
aspects of banking risk management. Basel III, on one hand,
improve the quality and
holds and

quantity of loss absorbing capital that a bank

aims at increasing the risk coverage of the capital framework, in

particular for trading activities, securitisations exposures

sheet

attempts to

vehicles

derivatives.

and

counterparty

to

off-balance

credit exposures arising out of

On the other hand, it has devised regulation for dealing with

systemic risk by prescribing countercyclical capital requirement, to contain

pro-cyclicality and a framework for G- SIBs and D-SIBs has also been laid
down to manage risks arising from inter-connectedness.

An internationally harmonised Leverage Ratio has been introduced as a

simple back-stop facility to complement the risk based capital framework
order

to

contain

build-up

of

excessive

leverage

in

in

the system and

comprises of 3% loss absorbing capital relative to all of a banks assets,

including

off-balance

enhancements have

sheet

assets

without

also been introduced to

e-gyan by SBLC, Masulipatnam, May, 2014

risk

weighting.

Certain

the Basel II framework by

Page 10

raising standards for the supervisory review process and public disclosures
under Pillar 2 and 3, together with additional guidance in the areas of sound
valuation practices, stress testing, liquidity risk management, corporate
governance and compensation. The liquidity requirements include a minimum
liquidity coverage ratio (LCR) intended to provide enough cash to cover funding
needs over a 30-day p eri o d of stress. As such under LCR, the banks will be
required to hold a buffer of high-quality liquid assets sufficient to deal with
cash outflows encountered in acute short-term stress

scenario. At the

long-term spectrum, the net stable funding ratio (NSFR) is intended to

address maturity mismatches over the entire balance sheet for upto one year
and provides incentives for banks to use stable sources to fund their
activities. The proposals for the G-SIBS are tougher, to include combinations
of capital surcharges, contingent capital and bail-in debt as also strengthened
arrangements for cross border supervision and resolution in view of the higher
complexity, connectedness and riskiness.

The

Reserve Bank

too

has

adopted a

proactive

and

calibrated

approach towards demanding and facilitating robust risk management efforts

by the banks.

Reserve Bank has been adopting a considered approach of

limiting the systemic risk originating from both the pro- cyclicality as well as
interconnectedness dimensions. For example, countercyclical measures
were adopted as early as 2004 to stall heating up
sectors

by

increasing

the

risk

weights

of

certain

specific

and provisioning ratios for

sensitive sectors such as capital market, housing, commercial real estate

during the period when the boom was building up.

Several measures

were taken to reduce the inter-connectedness among banks on the one

hand and between banks and NBFCs on the other, to address the crosssectional dimension of systemic risk and regulatory limits have been placed on
exposures to capital market exposures. Such macro-prudential approach,

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Page 11

which was not widely prevalent then, s a v e d the domestic economy from the
adv erse shocks during the height of the crisis.

Implementation of Basel III Capital Regulations has commenced in India from

April 1, 2013; and it will also be in phases, and would be fully implemented as
on March 31, 2019 close to the internationally agreed Basel III transitional
arrangement.

As against the minimum Tier 1 leverage ratio of 3 per cent proposed

by the Basel Committee of Banking Supervision (Basel Committee)

during

the parallel run period beginning from January 1, 2013 to January 1, 2017,
the Reserve bank has prescribed a minimum Tier 1 leverage ratio of 4.5
per cent during the parallel run period. The leverage

ratio

framework

is

being revised i n line with the recent proposals of the Basel Committee.

A survey o n banking risk management, conducted under t h e aegis of the

I n s t i t u t e of International Finance, sees a renewed focus on risk culture. It reports
that risk culture is now at centre stage and banks have made significant
progress toward changing their risk governance frameworks in the wake of the
financial crisis. Board risk committees are nearly universal, and members have
received appropriate training in risk management. The role of the chief risk
officer has broadened, while its seniority and status have been enhanced.
They now report either to the chief executive officer or jointly to the CEO
and

risk

committee. However, t h e survey laments that the industry continues

to wrestle with the process of embedding risk culture beyond the boardroom
and into business units while ensuring adequate risk transparency.

Risk appetite continues to be an essential part of risk governance, but the

industry continues to be challenged to embed risk appetite into business
deci sions. The financial services industry recognized during the financial
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Page 12

crisis that boards needed to change focus from share price and profitability
to the risks entailed in their strategies. Also, chief risk officers needed to be
empowered to create cultural change within their organizations.
One of the

challenges that banks face in developing comprehensive risk

measurement models are the scarcity of available historical and time series
loss data and the quality, completeness and reliability of the data available.
The regulatory initiatives as also the banks individual efforts in this direction have
certainly improved the risk management standards in Indian banks in the
last few years.

Since the initiation of structural reforms in the Indian

banking sector in 1991, the reach and business volumes of Indian banks
have increased many fold; the operations have grown and assumed higher
degree of sophistication. The Indian banks' current capital base and liquidity
position are broadly comfortable, as a starting point, vis-a-vis the Basel III
guidelines

Asset quality is an important parameter to measure the health of the

and

concomitant with asset quality is the

banks

provisioning coverage that

banks hold against stressed assets. Asset quality of the Indian banking
system had improved significantly since introduction of prudential norms,
S A R F A E S I Act, CDR Mechanism, Credit Information Companies, etc.

All Indian

banks, including

foreign

banks in

India,

migrated

standardized approaches of Basel II by March 31, 2009

Large

sized

Indian banks and

been

encouraged to adopt

to the

in two phases.

banks with international presence have

the

Basel II advanced

approaches

for

computation of capital for credit, market and operational risk.

e-gyan by SBLC, Masulipatnam, May, 2014

Page 13

A n o t h e r very significant aspect of the bank operations,

corporate entity,

and

that

is

the

just

as in

commercial aspect viz.,

any

profitability

management. Profitability in banks, as in the corporates, is reflective of the

financial well-being, health and robustness of the
bearing on its capital formation ability.

entity and

has a direct

On the flip side, if the banks strategies,

business models, planning and operations and

risk management

are

weak,

obsolete or outdated or not in tune with the macro-economic environment,

the income flowing there from may be low or may end up in losses. Profitability
is impacted by the business decisions of the bank, t h e b usi ness model it
pursues, quality and type of asset base as also by operational efficiencies
and any noteworthy s h i f t in its strategies and policies.

The risk profile of a

bank can also be gauged from its income and expenditure statement to
a great extent.

However, currentl y alignment of the risk management and

profitability management objectives is not so much in focus.

Over the years and especially in the wake of the learnings from the global
financial crisis, banks have
improving

risk

enhanced their efforts in the

management practices

as I

have

direction of

enumerated earlier.

However, going forward much work still remains.

SOURCE: Excerpts from delivered by Shri R Gandhi on the occasion of seminar on Banking organized by
Indian Merchants Chamber Assistance.

e-gyan by SBLC, Masulipatnam, May, 2014

Page 14

DISCLAIMER
We have made every effort to provide best solutions for the queries raised by
the operating staff in KHL. However, the readers of this magazine are advised
to go through the Banks Circulars, publications and seek advice from the
Controllers or experts before taking any action or decision based on the
information, material contained in this e-magazine.SBI/SBLC do not accept any
liability for any damage or loss of any kind, howsoever caused or of any
nature whatsoever as a result (direct or indirect) of the use of the information,
material contained in this e-magazine.
We solicit suggestions/ feedback to stc.mptm@sbi.co.in for improvement of this
magazine, e-gyan.
SIR, ONE OF OUR BORROWER HAS APPROACHED OUR BPROUTFIT FOR
CONVERSION OF EXISTING CASH CREDIT LIMIT TO TERM LOAN. PLEASE
CLARIFY WHETHER WE CAN CONSIDER THEIR REQUEST. PLEASE ARRANGE
TO PROVIDE US VIDE CIRCULAR REFERENCE FOR CONVERSION OF EXISTING
CASH CREDIT INTO TERM LOAN FOR OUR REFERENCE AT THE EARLIEST.
Sir, Cash Credit is payable on demand, if at the time of review/ renewal if the branch
officials feels that the account is not running according to the terms of sanction, we may
call up on the entire advances, if required we may fix limit reduction programme at the
mutually agreed period not exceeding upto 36 months, with the approval of the
sanctioning authority, this way we can help the borrower, but there is no such facility like
converting a CC into Term Loan.

How can we send a statement of softcopy to a customer? Also how to update mail id in
cif
Sir, Please go through the following menu. Reports->Initiate request for host reports->
screen no.69088 will open. Give the following details: Function: Create Institution Code
:3 In the field `Request branch input branch code. In the field `Report ID: Input IN055A,
Give details in the fields` From date, `To date and Give account number in respective
field and then Transmit. System will generate a reference number. You can find the
statement in the branch server, which can be copied as a soft copy.

e-gyan by SBLC, Masulipatnam, May, 2014

Page 15

DEAR SIR, FOR A CURRENT ACCOUNT INB FACILITY HAS BEEN AS KHATA, AS
CUSTOMER

REQUESTED

FOR

TRANSACTION

RIGHTS,

IT

HAS

BEEN

UPGRADED TO VYAPAAR. BUT THE CUSTOMER IS ONLY A SINGLE USER, HOW

TO CHANGE IT TO SARAL? PLEASE ADVICE
Sir/ Madam, One should be cautious while providing INB Access as there are lot of
financial implications as the transfer limits are also high, you can now deactivate the
CINB Vyapaar facility in Branch Interface and issue Saral in CBS. If the problem is not
solved, please seek assistance from CINB Department available in Alternate Channels.

DEAR SIR PLZ PROVIDE STAMP DUTY CIRCULAR IN AGRI SEGMENT SIR HOW
MUCH STAMP DUTY FOR AB 1 IN CASE AG TERM LOAN SIR HOW MUCH STAMP
DUTY FOR AB 1 IN CASE AG CASH CREDIT
Sir, Bank is not issuing stamp duty circular. Stamp duty is state government issue, so
you can get it from Sub Registration office. For AB1, it is 0.50% of loan amount for TL
and CC. I will send soft copy to your e-mail regarding stamp duty for various segment
and facility.

What is the maximum premium to be paid by a KCC Borrower under PAIS ? ANSWER
IN WINGS--RS.5 IN SBLC,DEOGARH--RS.15 WHAT IS THE CORRECT ANSWER?
The premium under PAIS is Rs.15.00 per borrower per year which is to be shared @
Rs.5.00 by borrower and Rs.10.00 by bank. The premium can also be paid in advance
for a period of 3 years ( as earlier the KCC is to be issued for 3 years), so the premium
for 3 years was Rs. 45.00 ( shared atRs. 15.00 by borrower and Rs.30.00 by bank )

Sir, We propose to break open 70 lockers. In this connection we need appropriate

format of panchanama certificate for witnessing the event.
Sir, For the instructions regarding breakopen of lockers please refer to e-Circular
NBG/PBU/LIMA-SDL/23/2007 - 08 dated Thursday,November 22,2007, wherein the
relative annexures are also enclosed.
e-gyan by SBLC, Masulipatnam, May, 2014

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If one opens PPF account in the name of his mentally handicapped minor son, what
will be the procedure for payment of proceeds at the time of maturity, when the boy
becomes major; similarly, what is the operational procedure for the SB accounts
opened in the name of mentally handicapped persons
Sir/ Madam, As per Master Circular on Savings Bank Accounts (opening of accounts)
2.8. Accounts in the names of persons with Austism, Cerebral palsy, Mental retardation
and Multiple disabilities i. As per the Multiple Disabilities Act, 1999 a legal guardian so
appointed can open and operate the bank account as long as he remains the legal
guardian. ii. The provisions of Mental Health Act, 1987 also allows appointment of
Guardian by District Courts. iii. Branches are therefore advised to rely upon the
Guardianship Certificate issued either by the District Court under Mental Health Act or
by the Local Level Committees under the above Act for the purposes of opening /
operating such accounts. Branches have to ensure giving proper guidance so that the
parents / relatives of the disabled persons do not face any difficulty in this regard. The
same rules will be applied for opening of PPF account also.

Dear sir, if both wife and husband works in state bank of india in award staff
designation, are they both eligible for LFC, can they both claime LFC in different
financial years?? thanking you sir
Dear Sir, Please go through SB Times>Human Resources>What's New>HR Handbook
Volume II> Chapter 12 (Leave Rules). Page No 211 and 223 clarify the query. It says
that, "Where the husband and wife are both working in our bank, although each will be
entitled to home travel concession/leave fare concession in his/her own right, the family
including the husband and wife taken together will not be eligible for the concession
more than once in the relative period."

e-gyan by SBLC, Masulipatnam, May, 2014

Page 17