SUMMER TRAINING REPORT ON

‘BANKING SYSTEMS OF ALLAHABAD BANK,

NEW DELHI’

A PROJECT REPORT SUBMITTED TO

GURU NANAK DEV UNIVERSITY

IN PARTIAL REQUIREMENT FOR THE AWARD OF DEGREE

OF

BACHELOR OF BUSINESS ADMINISTRATION (B.B.A. III)

SESSION (2009 -2010)

SUPERVISED BY: SUBMITTED BY:

Mrs.Manisha Behal RUSHIKA SEHGAL

Lecturer CLASS ROLL NO.8289

Dept.of commerce UNIV. ROL

D.A.V. COLLEGE, AMRITSAR

 ACKNOWLEDGEMENT

Nobody in the world is perfect in the field of study or any of research.

Everybody needs to be guided and supervised by some experienced and
intelligent people.

I express my profound gratitude to my respectable guides and teachers. First,

I pay my thanks to Mrs. Manisha Behal lecture of dept. Of commerce &
business management of commerce department .Her supervision and
sympathetic attitude enabled me to undertake the work of this project report.

I am highly thankful to the authorities of bank who helped me and guided me

to present the project report on the banking systems of Allahabad bank.

I also express my gratitude towards my parents for their constant

encouragement and valuable support and above all my dearest almighty.

RUSHIKA SEHGAL
BBA-III
 SUPERVISORY CERTIFICATE

This is to certify that Ms. Rushika Sehgal student of B.B.A.-III in dept. Of

commerce, D.A.V. COLLEGE, AMRITSAR affiliated to GURU NANAK DEV
UNIVERSITY, AMRITSAR has completed the project report on the banking
systems of “ALLAHABAD BANK” under my guidance and supervision.

This is also to acknowledge the sincere and outstanding efforts made by her
in seeking thorough assistance in the preparation of the project report.

Mrs. MANISHA BEHAL

Lecturer
Dept. of commerce
D.A.V. COLLEGE,
AMRITSAR
 STUDENT DECLARATION

I declare that the project report entitled BANKING SYSTEMS OF

ALLAHABAD BANK is in a partial fulfilment of the requirement for the degree
of bachelor of business administration to be submitted to GURU NANAK DEV
UNIVERSITY, AMRITSAR. It is my original and has not been submitted for
the reward of any other fellowship...

Rushika Sehgal
BBA-III
Class Roll No. 8289
University Roll No.
 RESEARCH METHODOLOGY

For preparing this project report different types of information has been
collected from different sources. The main sources are as follows:-

 PRIMARY SOURCES

The primary sources for preparing this project include the information
collected from the employees and various executives of ALLAHABAD
BANK, NEW DELHI.

 SECONDARY SOURCES

All of the other sources other than primary are called secondary
sources. The main secondary sources for this purpose are the data and
the other facts collected from:

• Website of ALLAHABD BANK

• Magazines

• Brochures

• Pamphlets
 OBJECTIVES OF STUDY

To study the different accounts of ALLAHABAD BANK and various facilities

provided by the bank.

 To study various loan schemes.

 To study about core banking solutions.

 To study about ATM facility provided by the bank.

 CONTENTS

1. INTRODUCTION TO THE BANKING SYSTEM

2. INTRODUCTION TO THE ALLAHABAD BANK

3. BRANCHES AND BUSINESS

4. NEW INITIATIVES

 NO FRILLE SAVING BANK ACCOUNT

 DOUBLE DEPOSIT PLAN

 DIAMOND JUBLEE DEPOSIT SCHEME

 DEPOSIT SCHEME FOR NON RESIDENT INDIANS

 ATM FACILITY

5. COMMON PRACTICES FOLLOWED BY DIFFERENT BRANCHES

6. REQUIREMENTS TO OPEN AN ACCOUNT

DIFFERENT TYPES OF ACCOUNTS

 SAVING ACCOUNT

 MONEY MULTIPLIER SAVING BANK ACCOUNT

 CURRENT ACCOUNT

 TERM DEPOSIT ACCOUNT

7. VARIOUS FACILITIES PROVIDED BY THE BANK

 ARTICLES IN SAFE CUSTODY

 REMITTANCE OF FUNDSBANKER’s CHEQUES

 ALL AYUSHMAN BIMA YOJNA

 CASH MANAGEMENT SERVICES

8. AUTOMATIC TELER MACHINE (ATM)

TERMS AND CONDITIONS

 RANGE OF SERVICES

 INDEMNITY

 JURISDICTION

9. CORE BANKING SOLUTIONS

 VALUE ADDED CORE POWER PRODUCTS

 RETAIL INTERNET BANKING

 MULTIPLICITY CHEQUE BOOK

10. LOAN SCHEMES

 ALL BANK HOME LOAN

 ALL BANK CAR LOAN

 LOAN AGAINST MORTGAGE OF IMMOVABLE PROPERTIES

 LOAN TO PENSIONERS

 LOAN SCHEME FOR TRADE & SERVICE SECTOR

  SCHEME FOR FINANCING TO PETROL PUMP DEALERS

 SCHEME FOR FINANCING FROM COMMISSION AGENTS

 LAGHU UDHYAMI CREDIT CARD

 FINANCING TO EDUCATIONAL INSTITUTIONS

 ALL BANK SARL LOAN

 ALL BANK ABHUSHAN LOAN

 ALL BANK GYAN DEEPIKA LOAN

 ALL BANK RENT SCHEME

 ALL BANK LOAN SCHEME FOR DOCTORS

 LOAN AGAINST NSC/KVP

 ALL BANK MOBIKE SCHEME

11. RECOMMENDATIONS / SUGGESTIONS

12. CONCLUSION

13. BIBLIOGRAPHY

ANNEXURE
 CHAPTER 1

INTRODUCTION TO BANKING SYSTEM

INTRODUCTION TO BANKING SYSTEM

The banking system in India went through various stages before it emerged
into modern banking system .The ancient banking system of India constituted
of indigenous bankers .They have been carrying on their age old banking
operations in different part of the countries under different names .Then came
commercial banking in 1770 with the establishment of the first joint bank
,named THE BANK OF HINDUSTAN ,by an English agency in Kolkata but
this bank failed in 1823.in fact ,real beginning of Modern commercial banking
in the country with the establishment of the BANK OF BENGAL in 1806 later
on, THE BANK OF BOMBAY and THE BANK OF MADRAS were also set up
in 1840 and 1843 respectively. All these banks were called presidency banks.

In 1881 the first purely Indian bank i .e OUDH COMMERCIAL BANK came
into being .It was followed by setting up of Punjab national bank in 1894 an
Peoples bank in 1901.the Swadeshi movement of 1905 encouraged the
growth of commercial bank in India .The commercial banks in India can be
divided into two groups:

 Public sector banks

 Private sector banks

Public sector banks have developed in four phases:

  : First of all Imperial bank of India was nationalised and renamed as

STATE BANK OF INDIA IN 1995

 : Later on, eight former state associated banks were reconstituted into

seven subsidiary banks of the state bank of India.

 : On July 19, 1969, major commercial banks were nationalised. Again

on April 15, 1980, six more commercial banks were nationalised.

 : Another important development in the public sector was the

establishment of regional rural banks in 1974, at present their number is
196.

In post nationalisation era, no new private sector bank was allowed to be set
up. However in 1993 in recognition of the need to introduce greater
competition which can led to higher productivity and efficiency of the Banking
Systems, new private sector bans were allowed to be set up in Indian Banking
System .This lead to the wave of introduction of

PRIVATE SECTOR BANKS.

Thus the commercial banking in India, in recent years, has been experiencing
radical changes both quantitatively and qualitatively.
 CHAPTER 2:

INTRODUCTION TO ALLAHABAD BANK

BANK OF ALLAHABAD
 INTRODUCTION

Allahabad Bank, which began operations in 1865, now has its head-quarters
in Kolkata. Currently the bank has 2260 branches across the country. The
Chairman and Managing Director of the bank is K R Kamath. The bank's
internet banking is maintained by EBankWorks Team of TCS.

Allahabad Bank is one of the premier nationalized banks in India. It is also

the oldest joint stock bank of India. It was incorporated by a group of
Europeans at Allahabad on April 24, 1865. It was the time Indian economy
had started shifting towards organized trade and business affairs. After some
years in 1920, the P&O Bank brought Allahabad Bank and its headquarters at
Kolkata. The Allahabad bank got an entirely new identity when it was
nationalized in 1969 along with 13 other banks in India. Since then the
Allahabad Bank had a smooth journey towards progress. Today it is one of the
leading banks in India with a whooping business of over Rs.1, 00,000 crores.

Overview

The Oldest Joint Stock Bank of the Country, Allahabad Bank was founded on
April 24, 1865 by a group of Europeans at Allahabad. At that juncture
Organized Industry, Trade and Banking started taking shape in India. Thus,
the History of the Bank spread over three Centuries - Nineteenth, Twentieth
and Twenty-First.

April 24, 1865's The Bank was founded at the confluence city of
Allahabad by a group of Europeans.

1920's The Bank became a part of P & O Banking

 Corporation's group with a price of Rs.436 per share
1923 The Head Office of the Bank shifted to Calcutta on
Business considerations.
July 19, 1969 Nationalized along with 13 other banks, Branches -
151 Deposits - Rs.119 crores, Advances - Rs.82
crores.
October, 1989 United Industrial Bank Ltd. merged with Allahabad
Bank.
1991 Instituted All Bank Finance Ltd., a wholly owned
subsidiary for Merchant Banking.

October, 2002 The Bank came out with Initial Public Offer (IPO), of 10
crores share of face value Rs.10 each, reducing
Government shareholding to 71.16%.
April, 2005 Follow on Public Offer (FPO) of 10 crores equity
shares of face value Rs.10 each with a premium of
Rs.72, reducing Government shareholding to 55.23%.
June, 2006 The Bank Transcended beyond the National
Boundary, opening Representative Office at Shenzen,
China.
Oct, 2006 Rolled out first Branch under CBS.
February, 2007 The Bank opened its first overseas branch at Hong
Kong.
March 2007 Bank's business crossed Rs.1,00,000 crores mark.
 CHAPTER 3:

 BRANCHES AND BUSINESS

 BUSINESS GROWTH

BRANCHES AND BUSINESS

Allahabad has adopted CBS (Core Banking Service) since 2006 and has
developed 24 hours connectivity with its 2165 branches across the length and
breath of the country. In 143 years of it existence the bank has come a long
way by developing a wide grip over all the corners of India. At present the
Allahabad Bank has 44 Zonal Offices 6 Staff Training Colleges and 3 Staff
Training centers for imparting training centers in India.

Apart from general branches, the bank has also come up with specialized
branches, like Industrial Finance Branches, International Branches, Finance
Branches, Recovery Branches, NRI Branches Specialized Personal Banking
Branches, Specialized Savings Bank Branches, Quick Collection Service
Branches, Trading Finance Branches and Service Branches in many major
cities of India.

The businesses of the bank are thriving successfully. In the end of March
2007, the Allahabad Bank crosses a land mark of Rs.1, 00,000 crores. The
bank's business also registered a 6.90% growth during April-Sept 2007, when
its business increased up to Rs.1, 08,458 crores from Rs.1, 01,458 crores in
merely 5 months. On Year-on-Year basis, the business of the bank has grown
at a rate of 19.87%. The bank also registered an immense growth in total
deposit record when its business went up to Rs. 65,896 at end of September
2007 crores from Rs.54,006 crores in September 2006.

BUSINESS GROWTH

 Deposits increased by 28.51% and advances by 42.22%

 Net profit increased from Rs.287 Crores to Rs.303 Crores.

 Total income increased by 12.84% against an increase of 13.79%in

total expenditure.

 EPS increased from Rs. 1160 to Rs. 1225 and book value of Rs. 100

 Share improved from Rs. 8260/- to Rs. 8915/-.

 Cost of deposit increased from 4.73% to 4.90%.

 Bank’s credit deposit ratio stood at 67.20%.

 Capital adequacy ratio stood at 13.55% against RBI stipulation of 9%

 CHAPTER 4:

NEW INITIATIVES

 NO FRILLS SAVING BANK ACCOUNT

 DIAMOND JUBLIEE DEPOSIT SCHEME

 DOUBLE DEPOSIT PLAN

 DEPOSIT SCHEME FOR NON-RESIDENT INDIANS

 ATM FACILITY
 NEW INITIATIVES

ALLAHABAD BANK INTRODUCES FACILITY OF “NO

FRILLS SAVING BANK ACCOUNTS”

In order to bring the low income group people, who have been traditionally
staying out of the banking sector into the banking net, ALLAHABAD BANK
has introduced the facility of “ NO FRILL SAVING BANK ACCOUNT”. any
individual can open a “NO FRILL SAVING BANK ACCOUNT” either in his own
name or in his joint names (including minors).the minimum amount for
opening of account is only Rs. 5 and thereafter the account can continue even
(0) balance .Maximum permitted balances in the account will be Rs.
50,000.number of withdrawals in a month will b restricted to five. A quarterly
statement of account will be given to the depositor on demand .The procedure
for documentation and introduction has also been simplified and only one
introduction from another account holder will be sufficient .While the facility of
collection of cheques will be allowed, No ATM card/Cheque Book will be
issued and transactions will have to be across the counter.
 DOUBLE DEPOSIT PLAN

One of the important functions of the Bank is to accept deposits from the
public for the purpose of lending. In fact, depositors are the major
stakeholders of the Banking System. The depositors and their interests form
the key area of the regulatory framework for banking in India and this has
been enshrined in the Banking Regulation Act, 1949. The Reserve Bank of
India is empowered to issue directives / advices on interest rates on deposits
and other aspects regarding conduct of deposit accounts from time to time.
With liberalization in the financial system and deregulation of interest rates,
banks are now free to formulate deposit products within the broad guidelines
issued by RBI.

This policy document on deposits outlines the guiding principles in respect of

formulation of various deposit products offered by the Bank and terms and
conditions governing the conduct of the account. The document recognises
the rights of depositors and aims at dissemination of information with regard to
various aspects of acceptance of deposits from the members of the public,
conduct and operations of various deposits accounts, payment of interest on
various deposit accounts, closure of deposit accounts, method of disposal of
deposits of deceased depositors, etc., for the benefit of customers. It is
expected that this document will impart greater transparency in dealing with
the individual customers and create awareness among customers of their
rights. The ultimate objective is that the customer will get services they are
rightfully entitled to receive without demand.

While adopting this policy, the bank reiterates its commitments to individual
customers outlined in Bankers' Fair Practice Code of Indian Banks'
Association. This document is a broad framework under which the rights of
common depositors are recognized.
 Diamond Jubilee Deposit Scheme

To commemorate Diamond Jubilee of Indian Independence the Bank has

launched a new deposit Scheme with value added features. The details of the
new Scheme are as under:

1. Name: Diamond Jubilee Deposit Scheme

2. Eligibility: All individuals (singly or jointly) including minors, HUFs,

Firms, Institutions, Organisations, Clubs, Corporate Houses etc.

3. Type of Account : Special Term Deposit Account

4. Features:
i. Minimum amount required to open the account - Rs. 15,000/- & in
multiple of Rs. 1000/- thereafter.
ii. Deposit Period – Fixed period of 550 days
iii. Validity of the Scheme - From 20th August 2007.
To 31st March 2008 or earlier, if withdrawn.
iv. Interest Rate- 9.25% p.a.
v. Additional interest of 0.50 % for senior citizens.
vi. Staff benefit of 1% will be allowed as applicable in case of normal
term deposit.
vii. Other features relating to opening of account, observance of KYC
norms, deduction of tax on maturity, if any, nomination facility etc.
would remain same as for normal Fixed Deposit Account.
viii. Interest will be compounded with quarterly rests.
5. Loans/ overdrafts are permissible as per the Bank’s existing guidelines.

DEPOSIT SCHEMES FOR NON RESIDENT INDIAN

ALAHABAD BANK offers deposit scheme for non resident Indians .NRI’S can
open saving bank account, current accounts , fixed deposit in Indian rupees
as well as in foreign currency. Moreover house loan is available for NRI’S on
attractive terms to purchase of plot for construction of house etc.

ATM FACILITY

Banks have been using electronic and telecommunication networks for

delivering a wide range of value added products and services. The use of
ATM’S lead to he concept of ‘anywhere’ and ‘anytime’ banking .Through the
use of ATM cards, one can operate his bank account to withdraw money from
any of the bank’s ATM installed or available at the nearest site. This had
broken down the time and space barriers. ALLAHABAD BANK has provided
ATM facility at every nook & corner of India.

Free Personal Accident Cover

All international Debit Cardholders would be covered under Free Personal

Accident Insurance for Rs 1.00 lac. In the unfortunate event of loss of life in a
mishap, the customer’s nominee will receive the benefit of accident insurance
up to Rs. 1.00 lac

How to apply:-

• All customers having Savings Bank or Current Account other than

Minors including joint holders (with mandate either/survivor) are eligible
for ALLAHABAD BANK’s International Debit-cum-ATM Card.
 • If you don’t have a Savings or Current Account, first open your account
in any of the networked branches of the bank.
• Submit the application form to the Branch along with your recent
photograph.
• Within a short period, you will receive your personalised ATM-cum Debit
Card.
• Collect the PIN from your Branch on receipt of the Card.
• Change the PIN at any Allahabad Bank ATM at the first opportunity.

Loss or Damage of the card

In case of loss or damage of the card, please inform the branch as well on the
toll free no 1800-22-0363 immediately so that the card will be blocked, to
ensure safety of your funds.

Terms and Conditions:-

• The validity of the card will be 5 years from the date of issue.
• The Card will be issued free of cost to primary and joint holders with no
annual charges for the first year.
• From the second year onwards Bank will charge an annual fee of Rs.
100/- only for renewal of the card every year.
• For issuance of duplicate cards our charges will be Rs. 100/-.
 CHAPTER 5:

COMMON PRACTICES FOLLOWED BY DIFFERENT

BRANCHES

COMMON PRACTICES FOLLOWED BY DIFFERENT

BRANCHES
 : Display business hours.

 : Render courteous services

 : Attend to all customers present in the banking hall at the close of

business hours.

 : Provide a separate “Enquiry” or “May I Help U” in the shape of “Grahak

Mitra”/ ATM dost counter at major branches.

 : Offer nomination facility to all deposit accounts (i.e. account opened in

individual capacity) and all safe deposit locker hirers (i.e. individual
hirers).

 : Display interest rates for various deposit schemes from time to time.

 : Notify change in interest rates on advances.

 : Provide details of various deposit schemes/services of the bank.

 : Issue Demand Drafts, Pay orders etc.

 : Display time norms for various banking transactions.

 : Pay interest for delayed credit of outstation cheques, as advised by

RESERVE BANK OF INDIA (RBI) from time to time.

 : Accord complaint/suggestion box/register in the branch premises.

 CHAPTER 6:

REUIREMENTS TO OPEN AN ACCOUNT

DIFFERENT TYPES OF ACCOUNTS

 SAVING ACCOUNT

 MONEY MULTIPLIER SAVING BANK ACCOUNT

 CURRENT ACCOUNT

 TERM DEPOSIT ACCOUNT

REQUIREMENTS TO OPEN AN ACCOUNT

 : As required by the law, while opening an account we will satisfy

ourselves about identity that is verification of address, to assist

prospective customer’s members of the public and ourselves against
fraud and other misuses of banking systems.

 : Bank is required to obtain two recent photographs of the person to

open an account.

 : Required to obtain (PAN) i.e. permanent account number or general

index register (GIR) No. alternatively about declaration in form No.60 or

61 as per income tax act.

 : The bank will provide to the prospective customer details of the

document required for identification.

 : Interest on deposit.

 Bank pay interest on deposits as per various deposit schemes. Interest

rates are revised from time to time.

 : Nomination facility

 Nomination facility is available for accounts opened in individual

capacity (i.e single/joint account) as well as accounts of sole proprietary
concern only and not for account opened in representative capacity.

DIFFERNT TYPES OF ACCOUNT

SAVING ACCOUNT

Saving accounts are designed to help the individual (personal customers) to

inculcate habit of saving money and to meet their future requirements of
money .The money can be deposited/ withdrawn from these accounts by way
of cheque/withdrawal slips .It helps the customer to keep only the minimum
cash required at home, besides earning interest on the balance in the bank, it
will be more safe.

Saving bank accounts are very popular .These accounts can be opened by
eligible persons/and certain organization/agencies (as approved by RESERVE
BAK OF INDIA)

THE account holder is required to maintain certain minimum balance in the

account, as specified by the bank from time to time, separately for
computerised and non computerised branches, and also depending on
whether the account holder wants to avail the cheque bank facility or not
.Interest at 3.50% p.a. is what ALLAHABAD BANK pays on half yearly basis
depending on the minimum balance b/w the other day and last day of the
months, provided it works out to be minimum Rs.1

MONEY MULTIPLIER SAVINGS BANK ACCOUNT (MMSBA)

ELIGIBILITY
Individuals, including minors aged 10 years and above single or joint names,
maintaining a minimum average quarterly balance of Rs. 5000 in savings bank
account.

Operations

The customer will have to define one threshold limit (minimum Rs.10, 000)
above which the amount in savings bank account will be automatically sweep
into fixed deposit account. The customer would be deposit account. The
customer would be free to change the threshold limit at any time without any
restriction subject to minimum of Rs. 10,000.

Any balance above threshold opted by the customer will be transferred to term
deposits in multiples of Rs.1,000 and start earning term deposits interest rate
applicable for maturity opted by the customer.

Auto Sweep periodicity would be operative as intervals as:

o Once a week, on any chosen day, e.g. Monday or Tuesday

o Once a month, on any chosen date, e.g. 1st or 2nd

Every sweep on or sweet out transactions will be in multiples of Rs. 1,000. For
sweep out of deposits the system of ‘last in first out’ will be followed.

In case the amount of last deposits is not sufficient to meet the amount of
withdrawal the previous deposits would be broken and so on.
All the term deposits will be opened maturity of one year to 5 years. The
depositor will have to opt for any maturity in round months. The customer will
have option of changing the maturity period for future switch over.
On maturity, the system will further renew the TDR for the period opted by the
deposit, the depositors will abide by the normal provisions of the income tax
act.
The saving bank deposits rules shall also be applicable to MMSBA.
Benefits to Customers

The modified product gives greater flexibility / liquidity to the customer.

Returns are high as the units in term deposits accounts earn higher interest
It gives greater convenience to customer, as he is no longer required to visit
branch for investing in term deposit account.
Nomination facility is available on money multiplier savings bank account

Current Account

Current account can be opened by individuals, partnerships firms, private and

public ltd companies, HUFS / specified associates, societies, trusts, etc.
Minimum balance as stipulated from time to time will be required to be
maintained. No interest is paid on credit balance kept in the current account.

Service charges are levied for legal folio used, chequebook issued, non-
maintenance of minimum balance, return of cheques, etc. For opening special
types of current accounts like for executors, administrators, trustees,
liquidators, etc. The branch manager will be consulted who will help in
opening these types of accounts.

Term Deposits Accounts

These are opened by individuals, partnership firms, private and public ltd
companies, HUFS / specified associates etc. Premature withdrawals are
allowed, unless specified other wise at the rate of interest applicable for the
period for which deposits has run on the contracted rate which is lowest,
subject to penalty, if any, prescribed by the bank. No interest will be paid on
premature withdrawals of deposits that have remained with bank for less than
15 days. Interest on deposits is payable either monthly at discounted value or
quarterly or compounded quarterly or on the date of maturity at the option of
the depositor as applicable under deposits scheme.

The depositors may furnish declaration on form no. 15h, preferably at the
commencement of the financial year for receiving interest on deposits without
deduction of tax at source, to the extent of laws stipulated in income tax act.

CHAPTER 7:

VARIOUS FACILITIES PROVIDED BY THE BANK

 : ARTICLES IN SAFE CUSTODY

 : REMITTANCE OF FUNDS

 : BANKER’s CHEQUES

 : ALL AYUSHMAN BIMA YOJNA

 : CASH MANAGEMENT SERVICES

Various Facilities Provided by the Bank

Articles in Safe Custody

Articles like shares, securities, deposits receipts, etc. can be kept in safe
custody with the bank on prescribed charges. Whenever such facilities are
offered large/ small boxes/ locker facility/ must be locked by the customers
and the particulars must be written / painted thereon. The lock should be
covered by stout cloth and sealed with customer’s seal.

Remittance of Funds

Customer may remit fund from one centre to another centre by DD or

Telegraphic Transfer (TT) or electronic mode by paying specified charges as
per banks rule. Demand Draft, Telegraphic Transfer and EFT for Rs. 50,000
and above all will be issued by the bank only by debit to the customers
account or against cheques or other instruments rendered by the purchaser
but not against cash payment similarly payments of Rs. 50,000 and above will
be made only though banking channels and not in cash.

Banker’s Cheques

Banker’s cheques are issued for making payment locally by your bank. Issue/
payment of banker’s cheques for Rs. 50,000 and above is to be made only
through the bank account. Validity period of banker’s cheques is 6 months that
can be validated by the issuing branch on the written requests of the
purchaser.

All Ayushman Bima Yojana

The Scheme is available to all depositors of the Bank maintaining Savings

Bank/ Current A/c./Term Deposit Accounts, aged between 18-54 years. By
submitting a simple membership form to their branches and without going for
medical test, the Depositors can insure their lives for a sum of Rs 1 lac.

The Bank has launched this Scheme in collaboration with Life Insurance
Corporation of India.
Under the Scheme, the depositors of the Bank – existing as well as new, by
paying a nominal premium can insure their lives for Rs.1 lac and in case of
death of the insured person, natural as well as accidental, the claimant can
get the sum insured i.e. Rs.1 lac without any hassles, from LIC through the
Bank's branch.

Eligibility:
All depositors of the Bank viz. Savings Bank, Current Accounts & Term
Depositors, aged between 18 - 54 years, are eligible to become the
member of the Scheme. The cover begins on completion of 18 years
and ceases on attaining 55 years.

In case a person holds more than one account in the same branch/ or other
branches of ALLAHABAD BANK, he/ she can be a member of the Scheme
only once and in the event of more than one claim being received, claim will
be paid under only one account and the premium if any received under other
accounts will be refunded.
In the case of joint accounts, cover will be extended to individual account
holder separately on the basis of individual applications/consent cum
authorisation letters and No objection Certificate (NOC) from co-account
holders.

Cash Management Services

(An exclusive Service for speedy collection of bulk/ retail outstation cheques
for Corporate Clients, NBFCs, Private/Foreign/Scheduled Banks)
Corporates/Institutions having wide spread network of branches, outlets often
have clients spread across a vast geographic area. Getting receivables
through cheques, drafts and other clearing instruments into their possession
itself consumes considerable time. Besides, they often find it difficult to have
access to funds at the required time since banks pass on the credit only on
realizations. Corporates are not certain of the time lag to get the instruments
collected through normal channel of banks and get the funds credited to their
accounts which hinder the treasury management portfolio and strain their
liquidity and profitability. Today's treasurers need rapid and reliable
information so that risk and exposure can be accurately monitored for
improved decision making. Efficient cash management processes are needed
to execute payment, collect receivables and manage liquidity. A strong cash
management tool is essential to execute company's financial strategy in a
world of intense competition & ever changing business opportunities and
economic volatility.
 CHAPTER 8:

AUTOMATIC TELLER MACHINE

 : TERMS AND CONDITIONS

 : RANGE OF SERVICES

 : INDEMNITY

 : JURISDICTION

AUTOMATIC TELLER MACHINE (ATM)

Banks have e using electronic and telecommunication networks for delivering

a wide range of value added products and services .The use of ATM’S lead to
the concept of “anywhere” and “anytime” banking .Through the use of ATM
cards, one can operate his bank account to withdraw money from any of the
bank’s ATM installed or available at the nearest site. This had broken down
the time and space barriers. The new banks are providing some of the
services exclusively through ATM’S.

(I) TERMS AND CONDITIONS

The terms and conditions under which the ATM cum debit card has been
issued are mentioned below for your guidance.

(a) TERMS USED HERE:

Bank means ALLAHABAD BANK
Card means ATM cum debit card issued to customer.
Cardholder means customer who has been issued ALLAHABAD BANK’S
ATM cum debit card.

(b) THE CARD

The card is the property of the bank and shall be returned unconditionally and
immediately to the bank upon request by the Bank .The bank reserve the
right to cancel the card and stop its operations unilaterally without assigning
any reason .The card is non transferable.

(c) THE PIN

The card holder is initially allotted a computer generated 4 digit PIN
(PERSONAL IDENTIFICATION NUMBER) which will be in a secured and
sealed PIN mailer. The card holder is adviced in his own interest to change
this PIN to any other four digit number of his / her choice. For this purpose, he
may use the PIN change option available at any interconnected ATM of the
bank or SBI. While selecting a PIN, the card holder is advised to avoid a PIN,
which can be easily associated with him/her.( e.g. telephone number, date of
birth, etc. Besides, the selected PIN value should not compromise.
A sequence from the associated account number

String of the same number

Historically significant dates

Please remember that an unauthorized person can access the ATM services
on cardholder’s account if h gains the card and the PIN. The card therefore,
should remain in card holder’s possession and should not be handed over to
anyone else .The card is issued on the condition that the bank bears no
liability for the unauthorised use of the card. The responsibility is fully that of
the card holder. Further the bank will not be responsible for any direct or
indirect on account of ATM failure/malfunctioning.

(d) LOSS OF CARD

The card holder should immediately notify the branch from where he/she has
obtained the card. If card is lost or stolen; the card holder should change the
pin immediately if it is accidentally divulged.
Any financial loss arising out of unauthorised use of card till such time bank
record the notice of loss of card will be to the card holder’s account .Fresh
card will be issued in replacement of lost/damaged card at charges of Rs. 100

(e)DEBIT TO CUSTOMERS ACCOUNT

The bank has the express authority to debit the designated account of the
cardholder for all withdrawals/transfers effected using the card as evidenced
by bank’s records, which will be conclusive and binding on the cardholder.
The cardholder expressly authorizes the bank to debit the designated account
with service charges from time to time.

(f)TRANSACTIONS
The transactions record generated by the ATM will be conclusive and and
binding unless found to be otherwise on the verification and corrected by the
bank .The verified and corrected will be binding on the card holder. Deposits
(cash / cheque) will be verified by two officials of the bank and their account
will be deemed to be correct. Errors will be notified to the cardholder by
mail .Outstation cheques , drafts, dividend warrants etc will normally be
accepted on collection basis/immediate credits subject to bank’s existing
terms conditions governing such business.

(g)CLOSING OF ACCOUNT
The cardholder wishing to close the designated account or surrender the
ATM facility will give the bank 10 working days notice in writing and
surrender the card along with the notice.

(h) VALIDITY OF THE CARD

Cards are valid for two years from date of issue. Please note that if the card is
used after expiry, it will either be retained or rejected by the ATM.

(i) OTHERS
ATM service is for withdrawing cash against the balance that is already
available with your account .It is therefore the responsibility of card holder to
maintain sufficient balance in the designated account to meet cash
withdrawals and service charges.
Where the ATM is not connected on line to customer’s branch, the
transactions in the ATM will be accounted for on the same day or next working
day.
The bank at its absolute discretion may amend the terms & conditions
governing ATM services .The same will be binding on the card holder.

(ii) RANGE OF SERVICES

FAST CASH
Cash withdrawals of pre-specified amount are present Rs.100, Rs. 3000 and
Rs. 5000 for a primary account to be designated by the card holder.

CASH WITHDRAWALS

Card holders may withdraw a maximum of Rs. 20,000 per day, subject to the
daily limit fixed by the branch. Any deviation in this regard may attract
additional charges. Card can be used to withdraw cash at all networked
ALLAHABAD BANKS in India.

BALANCE INQUIRY

Cardholder can see the balance in his accounts linked to ATM card on the
screen as well as obtain a transaction receipt showing the balance.

STATEMENT OF ACCOUNT

A statement containing the last five transactions in the account can be

obtained during the day mode .Cardholders are requested to deposit cash/
cheque at the ATM located at the branch where they maintain their account

REQUEST TO BANK FOR STATEMENT/CHEQUE BOOK

Statement/chequebook will be issued after receipt of the request at the

customer’s branch.

CHANGE OF PIN

Customer can change their PIN at any networked ATM

(III) INDEMNITY

the cardholder hereby indemnified and holds the bank harmless against all
actions, claims, demands, proceedings, damages, costs, charges and
expenses whatsoever that the bank may at any time incur, sustain, suffer or
be put as a consequence.

(IV) JURISDICTION

All disputes are subject to jurisdiction at ALLAHABAD BANK only.

NOTE:

The bank reserves the right to introduce new facilities or remove existing
facilities as and when warranted without assigning any reason for the same.

CHAPTER-9
 CORE BANKING SOLUTIONS

 : VALUE ADDED CORE POWER PRODUCTS

 : RETAIL INTERNET BANKING

 : MULTIPLICITY CHEQUE BOOK

ALLAHABAD BANK

Has become the first public sector bank of India by networking 100%

Branches under:

CORE BANKING SOLUTIONS

Now all our esteemed customers are invited to

ENJOY THE CORE POWER AND ANY TIME ANY WHERE

BANKING
BANK’S VALUE ADDED CORE POWER PRODUCTS

• : transfer funds from one branch to other account (self or third party) at
another branch for same day credit.

• For local transfers no charges will be levied and there will also be no
upper ceiling.

• : For other centres: Up to Rs. 20,000. No charges. Above Rs. 20,000,

bank charges of Rs. 20,000 per transaction.

• : deposit of cash by the customer or by third, for same day credit, to the
account t any branch with a ceiling of Rs. 20,000 per transaction.

DEPOSIT OF CHEQUE/INSTRUMENT any outstation branch (drawn on that

outstation centre) on:

a) Our branches

b) On other bank’s branches

On clearance, proceeds of such cheques/ instruments will be credited to the

customer’s account. As in the above case, there will be no charges up to a
threshold of Rs. 20,000.Rs. 20 will be charged beyond the threshold, which
will be recovered from the clearing proceeds.

ENCASHMENT OF CHEQUES BY THE ACCOUNT HOLDER AT ANY

BRANCH: SUCH ENCASHMENT CAN BE FOR:

a) Cash withdrawal

b) For transferring the proceeds to any other account at any other branch

c) For issuance of draft/ banker’s cheque/ TT

Encashment of cheques above Rs. 20,000 under (a) & (b) will be charged at a
rate of Rs. 20 per transaction.

In case of (c) usual charges for issuance of draft/ cheque/TT will be charge
additionally.

RETAIL INTERNET BANKING

RETAIL INTERNET BANKING Facility to all individuals at selected branches

of the bank .The following facilities are available in enquiry level:

1. Account information- statement of account.

2. Transaction information amount wise for the specified period.

3. Personalization of the screen: contests / layout/text size/design and colour.

4. Facility of viewing all the accounts of a customer number with the same
login.
The facility of internet banking to put through transactions by retail customers
(only in savings bank/current accounts and subject to the transaction limits per
day) will be as under:

 : Transactions between two accounts of the same customer in the same

branch/ different branches

 : Transaction between a customer and his trusted, third party customer

of the same branch

 : Request for cheque book

 : Request for demand draft/banker’s cheque

 : Stop payment of cheque

 : Request for changing of pay account in case of TIME DEPOSITS

 : Request for changing maturity/renewal instructions

 : Request for setting of standard instructions

 : Request for closure of loan accounts

 : Request for transfers of funds to loan accounts.

MULTICITY CHEQUE BOOK

 : Adding further dimension to our Core Power is the facility of

MULTICITY CHEQUE BOOK.
 : All P-segment customers maintaining an aggregate quarterly average

balance of Rs. 100000 in one or more type of deposit account will be

eligible for the multicity cheque book.

 : Charges of Rs. 5 per cheque leaf will be levied at the time of issuing
the cheque book.

 : Multicity Cheques will be payable at par at all branches of the bank.

 : Four transactions in a month will be free and from fifth transaction and
onwards a flat charge of Rs.100 per transaction will be levied.

CHAPTER 10:

LOAN SCHEMES

 : ALL BANK HOME LOAN

 : ALL BANK CAR LAON

 : LOAN AGAINST MORTAGE OF IMMOVABLE PROPERTY

 : LOAN TO PENSIONERS

 : GENERAL PURPOSE LOAN SCHEME FOR TRADE AND

SERVICE SECTOR
  : SCHEME FOR FINANCING TO PETROL PUMP DEALERS

 : SCHEME FOR FINANCING FROM COMMISSION AGENTS

 : LAGHU UDHYAMI CREDIT CARD

 : FINANCING TO EDUCATIONAL INSTITUTIONS

 : ALL BANK SARAL LOAN

 : ALL BANK ABHUSHAN LOAN

 : GYAN DEEPIKA LOAN

 : ALL BANK LOAN SCHEME FOR DOCTORS

 ALL BANK LOAN AGAINST NSC/KVP

 : ALL BANK RENT SCHEME

 : ALL BANK MOBIKE LOAN

LOAN SCHEMES

ALL BANK HOME LOAN

PURPOSE : To purchase or construct new / old/ house/ flat .To

repair/renovate/extend an existing house .To purchase plot for construction of
house there on .For furnishing / consumer durables as a part of the project
cost .To finance earnest money for booking of residential plots/house/flats
built by govt. Agencies.

ELIGIBILTY: individuals over 21 years of age with steady source of income.

LOAN AMOUNT: For purchase /construction of house/flat: need base

finance-no maximum limit .For purchase of plot and repair/renovation etc: Rs
10 lakhs max for furnishing and consumer durables: 15 of component A
(house loan) Rs.1, 50,000 (max)

FOR EARNEST MONEY: 90% of application or 24 times of NMI or two times

of net annual income, maximum Rs.2, 00,000 whichever is less, where
arrangement for receipt and refund of application money exists with the bank
branch.

THE MAXIMUM LAON AMOUNT IS SUBJECT TO THE FOLLOWING:

For individuals up to 45 years of age -60 times NMI for salaried persons and
five times net annual income for others for individual over 45 years of age -48
times NMI for salaried persons and four times net annual income for others.
Income of spouse and earning children (whether married or unmarried) can be
considered for determining the quantum of loan.

MARGIN: purchase of new or old house/flat or construction or extension of

existing house/flat: up to Rs. 1 crore - 15% (including cost of land additional
amenities, registration amount, stamp duty).
For repairs or renovation: 20%
For furnishing/consumer goods: nil
For purchase of plot: 30%

SECURITY: Equitable/registered mortgage of house to be purchased

/constructed or govt. Or any other security in the form of life insurance
policies, govt. Promissory notes, shares and debentures, gold ornaments, etc.
or such other security acceptable to the bank.
REPAYMENT: 20 years (maximum) for applicants up to the age of 45 years.
And 15 years (maximum) for applicants above 45 years .

PROCESSING FEE: 0.50%

SPECIAL CONCESSION: 50% concession on all types of personal

remittances and outstation collection cheques to regular A/c holders

RATE OF INTEREST: as applicable on the date of sanction.

ALL BANK CAR LOAN

PURPOSE: to purchase : (a) new car or jeep (b) an old car /jeep( not more
than four years old (c) to reimburse cost of car/ jeep not more than 2 years old
( unencumbered vehicle- 1st owner only).

ELIGIBILITY: Permanent/retired govt. Employees or employees of public

sector undertakings or of a corporation, employees of private sector
companies or reputed establishments, defence personnel with minimum of
one year service and other persons in business/ trade, professionals,
agriculturist and in private employment.
AMOUNT OF LOAN: 24 times the net take home salary or two times net
annual income.( 18 times NMI or 1 time NAI for short term car loan) subject to
a maximum of Rs. 12 lacks for new vehicle and Rs. 5 lakhs for old vehicles.
Regular income from all sources can be considered provided the sanctioning
authority is satisfied with the proof of income. The income of spouse can be
include provide the spouse guarantees the loan.

MARGIN: new vehicles: for loan up to Rs. 4 lacks: 15% for loan above Rs. 4
lakhs: 20%

FOR OLD VEHICLES: vehicles up to 2 years old : 30%, vehicles over 2-4
years old : 40%

SECURITY: (a) hypothecation of vehicles and nothing of hypothecation

charge in the books of RTO.
(b) Guarantee of the spouse, if his/her income has been taken into account for
computing eligible loan amount.
(c) (i) check – off facility , or

(ii) Security in the form of surrender value of LIC policy , NSCs units of UTI,
bank deposits gold or any other security normally acceptable to the bank for
grant of advances to cover at least 35% of the loan amount or
(iii) Third party guarantees good for loan amount

INSURANCE: comprehensive insurance

REPAYMENT: new vehicles: max 84 months.

Old vehicles (up to 2 years old) max 60 months (over 2-4 years old): max 36
months. Short term car loan: 35 months.

PROCESSING FEE: NIL

RATE OF INTEREST: as applicable on the date of sanction.

 LOAN AGAINST MORTGAGE OF IMMOVABLE
PROPERTIES

PURPOSE: general purpose loan

ELIGIBILITY: Individuals who are employees, professionals, self employed

and others who are income tax assesses, engaged in agricultural and allied
activities with minimum net monthly income of Rs. 12,000 for salaried persons
or minimum net annual income of Rs.1,50,000 in case of others and self
employed with maximum age limit of 60 years.

Minimum: Rs. 1, 00,000

Maximum: Rs. 20, 00,000

SECURITY: Equitable mortgage of non encumbered residential house/flat,

non agricultural urban landed property, commercial or industrial property in the
name and the possession of the borrower.

MARGIN: 50% of the market value of the property.

REPAYMENT: term loan: in 60 equated monthly instalment current account

overdrafts: in 60 months through monthly reducing DP.

PROCESSING FEE: 1% of the limit sanctioned

INSURANCE: property mortgaged need to be insured against all risks.

AUTHORIZED BRANCHES: (a) personal banking branches (b) branches with

‘P’ divisions and all branches in scale IV &V

RATE OF INTEREST: As applicable on the date of sanction

ALL BANK LOAN TO PENSIONERS

PURPOSE: To meet personal expenses.

ELIGIBILITY: All central/ state govt./ defence and ALL BANK pensioners /
family pensioners maintaining account at our branches and not more than 70
years of age.

LOAN AMOUNT: A maximum of 12 months pension with a ceiling of Rs.

75,000 (Rs. 50,000 of family pensioners)

MARGIN: NIL
SECURITY: Guarantee of spouse eligible for family pension or third party
guarantee

REPAYMENT: In 48 equated monthly instalments.

PROCESSING FEE: NIL

RATE OF INTEREST: as applicable on the date of sanction.

GENERAL PURPOSE LOAN TO TRADE AND SERVICE

SECTOR

ELIGIBILITY: individual /HUFs / proprietors/ partnership/ pvt. Ltd.

Cos.engaged in Trade% Service activities.

PURPOSE: to finance borrowers doing any lawful trading /service activities

under SBF and SSSBEs.

NATURE OF FACILITY:
a) TL/ CTL- repayable in 3-5 years.
(b) Working capital/ CC against stocks or O.D. against tangible collateral
securities.
QUANTUM OF LOAN:

Need based with max. Ceiling of Rs. 10 lacks.

SCHEME FOR FINANCES TO PETROL PUMP DEALERS

ELIGIBLE CUSTOMERS:Petrol pump dealers

PURPOSE: To meet working capital requirements for running the Petrol

Pumps.

NATURE OF FACILILITY: Cash credit against stock of petrol/ diesel/other

fuel or overdraft against collateral security.

QUANTUM OF LOAN:

(i) In case of C/C ; 75% OF STOCKS ( stocks in transit also included)

(ii) In case of O/D : (a) 50% of the collateral security ( max . limit Rs. 10,00
lacks such as mortgage of land/ building)
(b) 85% of approved securities such as pledge of NSC, FDR KVP, LIC policy,
IVP, etc.

The upper ceiling of OD limit in this case should not cross 50% of the storage
capacity in any case.

SCHEME FOR FINANCING COMMISSION AGENTS

PUROPSE: To finance commission agents against their receivable from
farmers

ELIGIBILITY: Commission agents enjoying good reputation in the urban/semi-

urban/rural areas, having sufficient experience in their line of business .

TYPES OF ADVANCE:
: Cash credit/overdraft
: Amount of loan-no ceiling

LAGHU UDHYAMI CREDIT CARD- A SCHEME TO SIMPLIFY

CREDIT DELIVERY PROCEDURE FOR SMALL
BORROWERS

PURPOSE: To meet the credit requirements of small business units, retail

traders, artisans, village industries, small scale industrial units and tiny units,
professionals and self employed persons etc.

ELIGIBILITY: All existing customers of the above categories who are dealing
with the Bank for the last three year satisfactory and enjoying loan/ operative
limit up to Rs.10 lakhs are eligible.
PRE-PARTY CEILING: (credit cards are issued) Maximum up to Rs.10 lakhs
per borrower.

MARGIN: 25%

ALL BANK LOAN SCHEME FOR FINANCING TO

EDUCATIONAL INSTITUTIONS

PURPOSE:
(a) Construction of new building/ repair, renovation of existing building with
adequate safe infrastructure.
(b) Purchase of electronic equipments such as computer peripherals etc.

ELIGIBILITY: Individual firms, company, trust/society running the educational

institution with adequate source of income.(both govt. Aided schools/ schools
governed by private management). The school should be recognised by
C.B.S.E/ I.C.S.E/ State education board)
QUANTUM OF LOAN: NO CEILING

REPAYMENT: 3-8 years (including moratorium period of six months)

ALLAHABAD BANK SARAL LOAN SCHEME

Target Group:

• Employees of those reputed public sector / private institutions /

organizations, whose salary are disbursed through our branches

• Institutions / Organizations whose salaries are not disbursed through

Allahabad Bank branches, but they are ready to enter into tie-up for
remitting the monthly installments from the applicant’s salary on monthly
basis.
• However, in case of transferable job a specific undertaking is required
to be submitted by DDO’s that in case of transfer of employee DDO’s
will continue to remit installment / arrange to remit even after the
transfer of concerned employee.
Eligibility

• The applicant should be a permanent employee of the Institution /

Organisation.

• The minimum monthly net salary of the applicant will be Rs.4,000/-

• The applicant must have at least 45 days' leave balance to his credit.

• Total deductions should not be below 50% of monthly gross salary.

Age

Minimum 21 years.
The loan should be repaid at least three months before retirement from
service.

Purpose

• 50% of the eligible loan amount may be availed for purchasing any
consumer durable item/ two wheeler/ any other tangible items.

• Upto 50% of the eligible loan amount may be availed from meeting
domestic, social, religious or any other exigency expenses.

Quantum of Loan 24 month's net salary or maximum Rs.7,50,000/-

whichever is less. Minimum loan amount is Rs.40,000/-

Margin 10%

Repayment: Maximum 60 Equated Monthly Instalments.

The loan must be repaid before three months of loanee's retirement from
service.
Prepayment Fees: 2.00% of the Outstanding Balance if prepaid within 1 year,
after that 1.00% only in case of takeover.

Security:

• Hypothecation of articles being financed and / or other items of existing

article owned by the proponent.
• Guarantee of Spouse or one Co-employee.
• If the DDO does not furnish Undertaking to route the terminal dues of
the borrower, guarantee of spouse and one co-employee OR guarantee
form two co-employees is required.

Allahabad Bank Abhushan Scheme

Eligibility

Working & Non Working Women: The women who are permanent
employees of Central / State Government Offices, Public Sector Undertakings,
Reputed Public Limited Companies, Educational Institutions owned by Govt.
and other reputed Educational Institutions, etc are eligible for loan under the
scheme.
However, other women (non working) will be eligible for the loan only when
her working spouse will join as a co-obligant as his income will be considered
as the source of repayment for the loan.

Age: 18-60 years (in case of salary tie up cases, maximum eligible age at the
time of loan should be such that the loan is fully repaid before her/ his
retirement from service)
Purpose For purchase of Gold and Diamond Jewellery

Loan Amount
For salaried persons:
Amount of loan will be restricted to 15 times of net take home salary of
borrower/s or Rs.2 lacs, whichever is less.
However, take home salary taking into account all deductions & EMIs for all
loans (proposed loan for purchase of Jewellery & existing loan, if any) should
not be less than 40% of the monthly Gross Salary.
For others
In case of borrowers other than salaried persons, amount of loan will be
restricted to net annual income of borrower/s or Rs. 2 lacs, whichever is less.

However, EMI for all loans (proposed loan for purchase of Jewellery & existing
loan, if any) should not exceed 50% of average monthly income computed on
the basis of average of three years Income Tax Returns

Margin 10% of the Cost of Jewellery

Security:
For salary tie-up cases:
It there is a tie-up arrangement for realisation of installment from the salary of
borrower / spouse, any additional security should not be insisted upon.
Security for Non-Salary tie-up cases
The loan should be collaterally secured by way of tangible securities, like
NSCs / LIC Policies (Surrender values)/ KVP's/ Bank's own Deposit in the
name of applicant/ third party/ Co-obligant to the extent of 80% of the loan
amount.
OR

a. Equitable mortgage of Residential Property valued 100% of the loan

amount should be obtained. In case of existing borrowers whose
 residential property is mortgaged with previous loan, a supplemental
mortgage covering the new loan may be created but it should be
ensured that value of property is not less than 100% of aggregate loan
amount (Existing Loan & Loan for the Jewellery)

However in cases where collateral security is not available (i.e. salary tie-up
advances), guarantee from the spouse/ adult working family member and/ or
other person with good means and standing will be obtained

Mode of Disbusement:
Disbursement should be made by way of Pay Order in favour of the Jewelers
on the basis of Bill / Quotation or on the basis of self-declaration by borrower.
The submission of bill is not mandatory.

Service Charges:
For loan upto Rs.50000/-: Rs. 500/-
For Loan above Rs.50000/- : Rs.1000/-

Repayment Period:
Repayable in 60 equated monthly installments, first installment will fall due on
30th day of the date of disbursement.

Mode of repayment:
In salary tie-up cases:
EMI to be deducted from monthly salary and credited in loan account.
 AllBank-Gyan Deepika Scheme

Target Group: Parents/ Guardians of students pursuing school education

from Nursery standard to 12th Standard.

Eligibility:
a) Should be an Indian national residing in India.
b) Student should have secured admission to a Recognized/Affiliated and
Reputed School/High School / Junior School / College (including
CBSE/ICSE/State Board) for courses under Nursery standard to 12th
Standard identified/ approved by the respective Zonal Office of the Bank.

Purpose:
i)Admission fees including caution money, building fund, refundable other
deposits, maintenance fees etc.
ii)Annual fees including Development fees, Examination fees, Library/
Laboratory fees, Hostel charges and other fees related to Hostels, purchase of
Books, Equipment, Uniforms, Computer etc.
iii) Tuition Fees to be paid in advance on quarterly/half-yearly/yearly basis
Loan Criteria:
a) Need based finance subject to the repaying capacity of the parents,
b) Maximum limit limit of the quantum of finance - Rs.1 lac, including all types
of expenses or any of the expenses under the scheme as mentioned above,
c) Net combined income of the parents'/guardians' should be above 40% of
gross income, after considering the EMI of the proposed loan.

LOAN LIMIT: Maximum Rs. 1,00,000/-

Margin: Nil

Rate of Interest (p.a.): PLR per annum (with monthly rest) for the loan
amount under the scheme
Processing Fee: NIL

Security:
a) No tangible/collateral security is required,
b) However, a concession of 100 basis points would be allowed for 100%
security cover of the loan amount by way of immovable property/other liquid
security,
c) Personal guarantee of the parents/guardian/s

Repayment Period: The loan is repayable in three years by 36 Equal Monthly

Installments to be paid by Post Dated Cheques (PDCs).
However, if the loan is taken for quarterly/half yearly expenses, the repayment
period would be adjusted in line with the periodicity of the expenses.
First installment will be due in the next month after the last disbursement.
 Allahabad Bank Personal Loan Scheme for Doctors/
Medical Practitioners

Target Group: Individual Doctors & Medical Practitioners.

Purpose: Any personal purpose including purposes for meeting expenses of

professional requirement.

Quatum of Loan: Amount equivalent to annual income or Rs. 5.00 lacs,

whichever is less.

Maxmium Age: 65 years on date of sanction of loan.

Margin: Nil

Rate of interest: PLR+1.00%

Processing Fee: 1.00% of loan amount, minimum Rs.500/.

Security:

i) Primary – NIL
ii) Collateral - Not mandatory
iii) Personal Gurantee of the Doctors
Repayment Period:
Maximum 60 months in equal monthly instalments.

Mode of Repayment:
By Post Dated Cheques

Loan against NSC/KVP

Eligibility Applicant must have National Savings Certificate / Kisan Vikas

Patra in own name.

Purpose Any Business / Personal purpose other than for speculative ones.

Loan Amount

• More than 3 years 100% of face value

• More than 2 years but less than 3 years 90% of face value
• Less than 2 years 75% of face value

Minimum loan amount is Rs.10,000/ subject to prescribed margins with no

upper ceiling.

Rate of interest

Term Loan PLR - 1.5%

Overdraft Facility PLR

Repayment Period: Loan to be liquidated within the tenure of the instruments

or earlier.

Repayment: By Equated Monthly Installment (For Term Loan)

Processing Fee: 1% of the loan amount, minimum Rs.250/-

Allahabad Bank Rent Scheme

Eligibility

 Owners of the property who have let out the same to reputed
Companies / Shops for Commercial purpose / Industrial /software
Companies, MNC's, Bank, PSUs / Reputed Govt. / Semi-Govt
Institutions / Organisations, Financial Institutions, Insurance Companies
etc. for their occupation or and also providing services in the form of
office infrastructure with/without manpower etc (Plug & play model) and
have future cash flows /receivables including lease rentals, service
charges, Agency Commission assuring Minimum Guaranteed Amount
etc. as per agreed terms.
 Owners of properties who have rented out their premises to Allahabad
Bank are also eligible

Purpose: For meeting business/ personal needs not for speculative purpose.

Age of the Building: Age of the building leased/ let out should not be more
than 15 years.

 Loan Amount
 The entitlement of the loan amount not to exceed 75% of post TDS
rent / service charge receivable after deducting the estimate cost of
providing such services for a period not exceeding 120 months or
unexpired period of lease/ agreement whichever is less.
  The Minimum loan amount under the scheme is Rs.1.00 lac and
maximum Rs. 75.00 crores.

Margin

 Upto 5 years 25%

 Above 5 years and upto 7 years 30%
 Above 7 years 40%

Security
Primary:- Assignment of Future cash flow/receivables includes lease rentals,
service charges. Agency Commission, Minimum Guaranteed Amount etc.
Collateral:- Equitable Mortgage of relative immovable property having market
value not less than 125 % of the proposed loan

Or

100% value of NSC/Bank's own deposit etc.

Or

125% cover partly by immovable relative property and partly by security such
as NSCs, Bank's own deposit etc
(Mortgage of property in the shape of land will not be accepted under this
scheme)
Rate of interest - PLR+1.00%

Repayment:-
In equated monthly installments from future cash flow / receivables including
lease rentals, service charges and Agency commission, Minimum Guaranteed
Amount etc.
Repayment can also be done by Stepped up / variable EMIs in consonance of
rent as per the escalation provision in lease agreement / agreement.
Repayment will start from next month of the date of first disbursement.

Allahabad Mobike Scheme

Eligibility: Salaried Persons (Minimum gross salary Rs. 4000/-),

Professionals & Self-employed Persons, Businessmen, Agriculturists.

Age: 21 to 60 years. In case of salaried persons

Purpose: For purchase of a new engine driven two wheeler

Loan Amount: Maximum Rs.40,000/- including cost of insurance and Road

Tax

Margin: 10% of the total cost on road.

Rate of Interest: PLR - 1.00%

Security:

 Hypothecation of Vehicle and registration with RTA with Bank

clause.
 In case where recovery is tied up with Salaries, Guarantee from
Spouse.
 In other cases, Guarantee from Spouse and Guarantee from 3rd
party, or, existing security (collateral or liquid) in other loan.

Service Charge: Rs.250/-

Repayment Period: 48 Equated Monthly Instalments.

Prepayment Fees: 2.00% of the Outstanding Balance if prepaid within 1 year,
after that 1.00% only in case of takeover.

RECOMMENDATIONS / SUGGESTIONS

 : Though, the bank is reaching new heights by providing various

services and facilities to its customers still there is a need to increase

refinement of services so as to increase customer base.
 : The bank has restricted itself to few areas i.e. just in northern India

through its various branches .There is a need to increase its branches

in more areas,
 : The bank is lacking with its publicity, advertisement techniques which

largely effects image of the bank.

 : Infusion of new ideas is not there as there is no initiative of the

employees working in the bank and fresh recruitment is not carried out
time and again.
 : There is a need for improvement of ATM facility respect to

infrastructure.
 CONCLUSION

ALLAHABAD BANK being one of the oldest and premium bank of the
country has been playing a crucial role in promotion of industries .The bank
has been providing schemes for small scale borrowers such as small income
groups, provides loan against mortgage of immovable property, special
scheme for financing Educational Institution, general purpose of loan scheme
for trade and service sector.

Through its various initiatives of no frills saving bank accounts, ATM facilities,
core banking solutions and by providing various deposit schemes for NRI’s, it
is reaching new heights.

The bank is committed to become the bank of choice by providing SUPERIOR

PROACTIVE, INNOVATIVE, STATE OF THE ART .Banking service with an
attitude of care and concern of customers and patrons.

The Bank is alive to the customers expectations that has been risen steeply
demanding high quality service and quicker decisions .Excellent customer
services has been an ingrained culture with the bank and every effort is made
for providing prompt ,courteous and responsive service to its customers.