ROLE OF BANKING INDUSTRY

For INDIA to become an economic powerhouse, it would not sufficient if one sector
alone performs. The engine of growth has to fire on all cylinders to have broad based shift in
income levels. Though the predominance on agriculture has come down, still it provides the
biggest pool of jobs. Manufacturing has its own pride of place though its share has been taken
partly by the service sectors envious growth levels. Banks are in a position to contribute for the
growth of all the three sectors. This would help in rising income levels, generate savings,
augment capital formation and thus be a catalyst for all round growth.
The Banking Industry was once a simple and reliable business that took deposits from
investors at a lower interest rate and loaned it out to borrowers at a higher rate
However deregulation and technology led to a revolution in the Banking Industry that saw it
transformed. Banks have become global industrial powerhouses that have created ever more
complex products that use risk and securitization in models that only PhD students can
understand. Through technology development, banking services have become available 24 hours
a day, 365 days a week, through ATMs, at online banking, and in electronically enabled
exchanges where everything from stocks to currency futures contracts. .
The Banking Industry at its core provides access to credit. In the lenders case, this
includes access to their own savings and investments, and interest payments on those amounts. In
the case of borrowers, it includes access to loans for the creditworthy, at a competitive interest
rate. Banking services include transactional services, such as verification of account details,
account balance details and the transfer of funds, as well as advisory services that help
individuals and institutions to properly plan and manage.
The collapse of the Banking Industry in the Financial Crisis, however, means that some of the
more extreme risk-taking and complex securitization activities that banks increasingly engaged
in since 2000 will be limited and carefully watched, to ensure that there is not another banking
system meltdown in the future.
 BANK OF BARODA
BANK OF BARODA was found by MAHARAJA SAYAJIRAO GAEKWAD of Baroda
on July 20, 1908 with a paid up capital of Rs. 10 Lacks. Since then the bank has traversed an
eventful and successful journey of almost 100 years. Today Bank of Baroda has a network of
2737 branches spread over 21 countries.
 In mid-eighties, the bank of Baroda diversified into areas of merchant banking, housing
finance, credit cards and mutual funds. In 1995 bank raised rs.300 Crores through a bond issue.
In 1996 the bank tapped the capital market with an IPO of Rs. 850 crores. Bank of Baroda took
the lead in shifting from manual operating systems to a computerized work environment. Today
the bank has 1918 computerized branches, covering 70%of its network and 91.64% of its
business.
Bank of Baroda gives high priority to quality service. In its guest for quality, the bank has
secured the ISO-9001:2000 certifications for 15 branches.
A SAGA OF VISION AND ENTERPRISE
It has been a long and eventful journey of almost a century across 21 centuries. Starting
in 1908 from a small building in Baroda to its new hi-rise and hi-tech Baroda corporate centre in
Mumbai is a saga of vision, enterprise, financial prudence and corporate governance.
It is a story described in corporate wisdom and social pride. It is a story crafted in private
capital, princely patronage and state ownership. It is a story of ordinary bankers and their
extraordinary contribution in the ascent of bank of Baroda to the formidable heights of corporate
glory. It is a story that needs to be shared with all those millions of people- customers,
stakeholders, employees, and the public at large- who in ample measure, have contributed to the
making of an institution..
MISSION STATEMENT
To be a top ranking national bank of international standards committed to augmenting
stake holder’s value through concern, care and competence.
BOB new logo is a unique representation of a universal symbol. It comprises dual ‘B’
letter forms that hold the rays of the rising sun. They call this the Baroda sun.
The sun is an excellent representation of what the bank stands for. It is the single most
powerful source of light and energy- it’s far reaching rays dispel darkness to illuminate
everything they touch. At the Bank of Baroda, they seek to be the source that will help all their
stakeholders realize their goals.
The BOB’s customers, they seek to be a one- stop, reliable partner who will help them
address different financial needs. To their employees, they offer rewarding careers and to their
investors and business partners, maximum return on their investment. The single-color,
compelling vermillion palette has been carefully chosen, for its distinctiveness as it stands for
hope and energy. They also recognize that their bank is characterized by diversity. Their network
of branches spans geographical and cultural boundaries and rural- urban divides.
Their customers come from a wide spectrum of industries and background. The Baroda
sun is a fitting face for their brand because it is a universal symbol of dynamism- it is meaningful
for their many audiences and easily decoded by all. Their new corporate brand identity is much
more than a cosmetic change. It is a signal that they recognize ad prepared for new business and
paradigms in a globalized world. At the same time, they will always stay in touch with their
heritage and enduring relationship on which their bank is founded. By adopting a symbol as
simple and powerful as the Baroda sun, they hope to communicate both.
WIDE GLOBAL NETWORK:-
Bank of Baroda started its overseas journey by its first branch way back in 1953 in
Mombasa, Kenya. Since then bank has come a long way in expanding its international network
to serve NRIs international bank. PIOs and locals. Today it has transforms into India’s
international bank.
It has significant international presence with a network of 61 offices in 21 countries
including 42 branches of the bank, 16 branches of six subsidiaries and three representative
offices in Malaysia, china and Thailand. The bank also has one joint venture in Zambia with 9
branches.
The bank has presence in world’s major financial centers. i.e. New York, London, Dubai,
Hong-Kong, Brussels and Singapore.
The ‘round the clock around the globe”, bank of Baroda is further in the process of
identifying/ opening more overseas centers for increasing its global presence to serve its 29
million global customers in still better way.
The bank has recently upgraded its operations in Hong- Kong on 2nd April 2007, and now
offers full banking service through its branch at central. It would also be upgrading its operations
to full banking service in china, Malaysia shortly.
The bank has plans to open new offices in Trinidad, Australia and Ghana for which
permission/ in principal approvals from host country regulators have been received. It is also in
process of establishing offices in Canada, New Zealand, Isle of Man, Sri-Lanka, Qatar, Bahrain,
Saudi-Arabia, Mozambique, Russia etc. besides this, it has plans extend its reach inn existing
countries of operations in UK, U.A.E, South Africa, Tanzania, and Botswana.
 Here’s a brief look at how international banking with bank of Baroda is both dependable
and efficient.
INDIAN NETWORK
The international network is supported by a large Indian network through international
business branches, Nonresident Indian branches, 115 authorized forex branches and more than
2600 other branches
Being the one of largest banks of the country with the maximum number of branches
overseas, bank of Baroda is well positioned to offer varieties of services, products and financial
solutions to cross sections of clients. Our products suit our client’s banking requirements by
virtue of being one of the best banking relationship networks both in terms of strength and spread
among the Indian financial entities
RESEARCH OBJECTIVE:-

MAIN OBJECTIVE: - To learn Retail Financial services of BANK OF BARODA

SUB OBJECTIVE: - 1) Studying the aspects of BANK OF BARODA
2) Studying the lending proposition of BANK OF BARODA
3) To understand BOB KYC norms & their services.
RESEARCH DESIGN:-
A framework or blueprint for conducting the marketing research project. It specifies the
details of the procedures necessary for obtaining the information needed to structure and/or solve
marketing research problems. A good research design will ensure that the marketing research
project is conducted effectively and efficiently. Typically, a research design involves the
following components.
CLASSIFICATION OF RESEARCH DESIGN
1) EXPLORATORY RESEARCH
2) CONCLUSIVE RESEARCH
EXPLORATORY RESEARCH:-
Exploratory research is one type of research design, which has as its primary objective
the provision of insights into and comprehension the research. Exploratory research can greatly
benefit from use of the following methods.
(a) Secondary data
 Primary data
 Secondary data
(b) Qualitative methods
 Depth interview
 Focus group
 Projective techniques

Analysis:-
We have use Secondary data, the information is getting from internet and bank website only.

CONCLUSIVE RESEARCH:-
Conclusive research can be done by following method :
(a) Descriptive research
 Survey method
 Observation
 Single cross sectional and longitude
(b) Causal research
DESCRIPTIVE RESEARCH
 To describe the characteristics of relevant groups, such as consumers, salespeople,
organizations, or market areas.
  To estimate the percentage of units in a specified population exhibiting a certain
behavior.
 To determine the perceptions of product characteristics.
 To determine the degree to which marketing variables are associated.

Analysis:-
We have conducted interview for survey.
We have conducted interview with BANK OF BARODA manager MISS. RITA DESAI. And
from her we have analyzed that the How protection is provided to customer at BANK OF
BARODA? And also the credit recovery from the customer.
PUPOSE OF THE RELATIONSHIP:-
1.1 Customer’s motivation to hold banking facilities :
➢ While several steps have been taken to improve the customer service, The Finance
Ministry has been decided by the Bank that all Branch Managers and Regional
Managers/Zonal Manager should, once in a month, meet a cross section of the customers
to discuss all issues and problems. This effect should be displayed at a prominent place at
the branch premises. The details of deliberations at such meetings should be advised to
the Regional Authority.
 ➢ Though it is sincere Endeavour to redress all customers' grievances, it is possible that
certain issues cannot be resolved at the branch level. In such cases, the issues should be
referred to the Regional Authority with full details.
1.1 Customer Relations Programmes or Delivery channel between customer
& organization :
➢ Branches should convene quarterly meetings of selected customers representing different
walks of life for discussing their problems, suggestions etc. Dates of such meetings
should be advised to the Regional Manager well in time, so that he may participate in the
meetings or depute an official if need be. Branches are authorized to incur coffee/tea
expenses at such meetings.
➢ The details of deliberations along with a list of customers invited/participated should be
furnished to the Regional Authority.
➢ A few pensioners or representatives of pensioner's association should also be called to
such meetings.
1.1 Importance of the Contractual relationship :
1) Relationship between banker and customer:
• When a 'customer' opens an account with a bank, he enters into an
agreement/contract. The relationship between the Banker and the customer, in
such cases is essentially that of "a debtor and creditor" respectively,
depending upon whether the account opened is a deposit account or a
borrower account.
• In the case of all deposit accounts, 'Banker' is a debtor and the customer is the
creditor. In the case of any loan/advances account, the banker is the creditor
and the customer is the debtor.
• However, with the variety of services rendered by the banks, in addition to
opening of a deposit/loan account, the relationship becomes more wide and
complex. The banker, thus, also acts as a bailee, trustee, principal, agent,
lesser, custodian etc., depending upon the type of services rendered and the
nature of transaction, as illustrated below:
• Transaction Relationship---
Sr. No Nature of Transaction Relationship of the Bank
_____________________________________________________________
 (1) Deposits Debtor
(2) Loans/Advances Creditor
(3) Bills/TT/DD/MT Payable Debtor
(4) Bills Purchased/Discounted Holder for Value
(5) Bills for Collection Agent
(6) Safe Deposit Locker Lesser
(7) Safe Custody Bailee
(8) Credit Investigation Referee
(9) Executor & Trustee Trustee
(10) Custodial Services Custodian
• These numerous kinds of relationship between the bank on one hand and the
customer, on the other gives rise to several obligations on the part of the
banker and also confers numerous rights associated with it.
2). Termination of relationship between a banker and a customer:
The relationship that is created between a bank and a customer, as above, comes
to an end with -
(a) death, insolvency, lunacy of the customer.
(b) the customer closing the account.
(c) the closing of the account by the bank after giving due notice.
(d) the completion of the contract or the specific transaction.
1.1 MARKETING OF SERVICES:
Introduction:
• The business of banking is defined as the mobilizing of deposits and
deployment thereof to generate profit. Thus, banking as a business activity
has to depend upon its customers be it for mobilizing deposits or deployment
of resources.
• The key task of the Bank is, therefore, not only to create customers, but also
to hold customers.
• Customers are not created automatically. While some may come voluntarily
and become customers, primarily banks are required to attract the customers.
• The customers are attracted through promises and held through proper
delivery of the promises. Bank marketing, therefore, is the task to define and
 design appropriate promises to the customers and ensure the delivery of the
same to the satisfaction of the customers.
1) Functions of Bank Marketing :
Based on the definition of Bank Marketing as above, the broad functions of
Bank marketing could be described as under :
• Identification of customers needs, financial and service related needs.
• Developing appropriate services and products to suit the needs of the
customer.
• Determining systems, procedures and prices of such products/ services.
• Setting up suitable channels for delivering the products /services.
• Communicating/propagating the services/products to present and potential
customers.
• Developing proper attitude, orientation and culture among the employees for
delivering the services/products to the satisfaction of the customers.
• Researching the efficacy of the existing services/products and
Understanding the changing needs of customers.
1) Why Bank Marketing :
• Bank as a commercial organization has to operate in such a way to generate
profits. However, nationalized banks like ours, have a more important role to
play as a catalyst for economic development through channalising the savings
of the people and deploy the resources, taking particular care of the under
privileged class of people.
• With the liberalisation of the economy and new private sector banks being
allowed to open, Besides, with growth of non-banking financial companies
with booming capital market, mutual funds etc., the opportunities for an
investor to deploy his savings have become wider. Gone are the days of walk
in business. Even existing customers are shedding their traditional loyalty to
their banks and do not mind shifting to other banks who offer better and
competitive services.
• Thus, there is now a distinct need for the banks to position their
products/services in clear, distinctive and desirable manner not only to attract
new customers, but also to retain existing customers.
1) Tips for Bank Marketing :
• Understand and acquire full knowledge of the various products/services
offered by the bank. If necessary, ensure that all the staff members are well
versed with the various products/services.
• Identify the segments of the locality/existing customers to whom the
products/services are to be marketed. For this an environment study of the
locality, your customer base etc. is essential.
• In the customer service meeting chalk out a strategy for marketing of the
service through celebration of special weeks, direct door to door canvassing,
issuing of pamphlets etc.
• Identify specific staff members for specific task and delegate authority and fix
responsibilities.
• Indent for and collect publicity material on various schemes/services from
Regional Office/Head/Central Office and keep them handy.
• Branch Manager should devote as much time as possible to meet as many
customers as possible.
• Efforts should be made to contact staff, employees of public sector
undertakings, corporate offices, government institutions etc. who form a ready
captive customer base with good potential.
• Proper upkeep of the premises contributes to a favorable impact on the
customer. So, Branch Manager should devote due attention to this aspect.
• Efforts should be made to concentrate on tapping low cost savings/ current
deposit a/c as this offers an excellent source of steady deposit at very low cost.
• Marketing cannot be an individual effort. It has to be a collective effort of a
team headed by a leader who has leadership qualities. So, a Branch Manager
has to set an example in motivating the team and lead them from the front,
guide them properly and achieve the goals.
TYPES OF CUSTOMERS:-

2.1 MINORS:
1) Who is a minor:
A minor is a person who has not attained 18 years of age. Where the court appoints a guardian of
is person or property, before he completes 18th year, a minor attains majority at 21 years of age.
According to the Indian Contract Act, 1872, a minor is not capable of entering into a valid
contract and a contract entered into by a minor is void. Branches should, therefore, be very
careful in dealing with a minor and take all due precautions.
2) Accounts opened by minors in their single name:
Savings Bank and all types of term deposit accounts can be opened in the names of minors of age
of 10 years and above, and current accounts can be opened in the name of minors of 14 years of
age and above, subject to following terms and conditions:-
(I) The minor should be able to read and write and be capable, in the opinion of the Branch
Manager / Joint Manager, of understanding what he/she does.
(ii) The account\t opening form, the application form, as is applicable and necessary, should be
signed by the minor in the presence of an official of the branch, who should be able to identify
the minor or to whom the minor should be properly introduced by the guardian.
(iii) The maximum amount that can be accepted in any such accounts of minors, between the
ages 10-14, should not exceed Rs.1/- lack.
(iv)Amounts tendered under various schemes of time deposits should always be in cash.
(v) Operations should be permitted as follows under various types of accounts:
(a) Current Accounts: Chequebook may be issued to minor. It is not necessary for the minor
to present himself in person for receiving payment.
(b) Savings Bank Accounts: On request, chequebook may be supplied conforming to the
existing rules relating to the facility of withdrawals by cheques. It is not necessary then for the
minor to present himself in person for receiving payment.
(c) In case of Term Deposit Accounts :On maturity, the amount can be drawn in cash by the
minor, in person (subject to the rules discussed in the chapter on "Time Deposits") or may be
credited to Current Account or Savings Bank Account in his/her sole name.
a. Joint accounts of minors:
No account can be opened in the names of two or more minors jointly
b. Accounts opened by minors through natural guardian/jointly with them:
father is the natural guardian of the property of a minor and even on death of the minor's father;
mother will not become the guardian. For minors of other religions other than Hindu minors,
either of the guardians can be accepted as the natural guardian and the accounts can be opened.
c. Information, recording, etc. :
(I) The birth date of a minor should always be:
(a) in the account opening form, specimen signature card and the ledger account in all types of
accounts and in a special diary.
(b) in the pass book in case of Current, Savings Bank or Recurring Deposit Account, and,
(c) in the Term Deposit Receipt in case of Term Deposit Accounts.
2.2 INDIVIDUALS:-
An account in a bank may be opened by any person who is legally capable of entering into a
valid contract and applies to the bank in proper manner.
(a) if he is of the age of majority,
(b) is of sound mind and
(c) is not disqualified from contracting by any law due to insolvency, minority, lunacy, idiocy,
drunkenness etc.
The full name of the accountholder should invariably be obtained in the account opening form,
whatever be the mode of his signature. Father's/Husband's name of the accountholder should also
be obtained. No two accounts should be opened in the same name
2.3 JOINT ACCOUNTS:-
1) JOINT ACCOUNTS OF INDIVIDUALS:-
Accounts of two or more individuals, who are neither partners nor executors or trustees, are
called joint accounts. Section 45 of the Indian Contract Act, 1872, governs joint accounts.
2) Opening of a joint account:-
(I) All the persons intending to open the account must sign account opening form.
(ii) Instructions regarding mode of operations, transfer/ closure of account, and payment in case
of death of a joint accountholder should be obtained clearly.
3) Operations in the joint account:-
(I) In case of joint accounts in two names: "Account will be generally operated upon by,
cheques will be signed by,
(a) Either of us or survivor
(b) Both of us jointly or survivor will be payable to
(ii) In case of a joint account in three or more names:-
"Account will be generally operated upon by, cheques the will be signed by, balance “ will be
payable to, and securities, if any, will be deliverable to:
Anyone/any two/any three/all jointly or survivors jointly or last survivor
4) DELEGATION OF POWERS BY JOINT ACCOUNT HOLDERS:-
All the joint accountholders should sign the mandate letter or a power of attorney
If all the joint accountholders have power to operate on the account to one amongst themselves
5) Death of a joint accountholder:-
if account shows a debit balance, operations in the account must be stopped immediately
6) Insolvency of a joint accountholder:-
(I) The branch must indicate the source of information and the details of the alleged act of
insolvency.
(ii) The branch should stop all operations on the account on notice of presentation of an
insolvency petition against any one of the joint accountholders.
(iii) In the event of one of the joint parties being involved in insolvency proceedings, cheques
drawn by the solvent parties on the account should also be returned
7) Lunacy of a joint accountholder:-
On receipt of notice of lunacy of any joint accountholder, cheques should be paid only on joint
instructions.
8) Bank's lien on balances in joint account:-
Under Bank's general lien, Bank can set off the credit balance in the individual account of one of
the accountholders against an overdraft in the joint account, provided the overdraft was created
by a cheque drawn by the said joint accountholder. In respect of any facility allowed in joint
account, the documents should be signed by all the accountholders.
2.4 Trustees:-
"The bank does not recognize trusts" does not mean that no account can be opened in the
name of a trust.
It should obtain an account opening form, signed by all the trustees and permit operations
thereon, strictly in terms of the trust deed. A list of the current trustees and the authority
appointing them as trustees and a certified copy of the resolution signed by all the trustees
in regard to the conduct of the account should also be obtained.
1) Documents to be obtained:-
Trust accounts should be opened only for good parties. All public trusts are required to be
registered under Public Trust Act of the respective state.
2) Trustees to act jointly:-
All the trustees must act jointly, Trustees have no implied authority to borrow or pledge trust
property,
3) Trust for specific period/purpose:-
It may be that certain trusts are only for a specified period or for a specific purpose. The bank
should ensure that the terms of the trust deed are in no way violated.
4) Death of a trustee:-
On the death of one of the trustees, the trust property passes to the other trustees as per the
provisions of the trust deed. The executor, however, has the right to appoint a new trustee,
provided the deceased trustee has in his will specifically authorised such an appointment,
5) Provident fund:-
Provident fund accounts are to be treated as trust accounts. If a provident fund is recognized by
the income tax authorities, a certificate to that effect issued by the concerned Commissioner of
Income Tax.
6) Religious and charitable trusts:-
To regulate public religious and charitable trusts, acts have been passed by some States
e.g. Bombay Public Trusts Act, 1950, which regulates such trusts in the States of Maharashtra
and Gujarat. When a trust is registered,
KNOW YOUR CUSTOMER (KYC) GUIDELINES
(I) “Know Your Customer” (KYC) procedure should be the key principle for opening an account
of an individual/corporate. The customer identification should entail verification through an
introductory reference from an existing account holder / a person known to the bank or on the
basis of documents provided by the customer.
(ii) It must be noted that the policy of the Know Your Customer guidelines go beyond merely
establishing the identity of the person and satisfying about his credentials by obtaining an
introductory reference from a known person. The due diligence expected under KYC procedures
involves going into detail. It involves going in to the purpose and reasons for opening the
account, anticipated turnover in the account, source of wealth (net worth) of the person opening
the account and sources of funds flowing in to the account.
(iii) Thus this is not a responsibility which ends with the opening of the account and monitoring
of transactions in the initial few months of opening of the account Obtaining documents like
passport, driving license, armed forced ID cards, Income Tax PAN Card, ID Card issued
by Govt. of India, State Govt. accompanied by signature verification and Photographs
would help establish the identify of person opening the account, but would not be sufficient
to prepare a profile of expected activities in the account.
KNOW YOUR CUSTOMER (KYC) NORMS:
Reserve Bank of India has issued instructions from time to time relating to proper
identification of account holders and the need for compliance of extant system and procedures to
help in preventing frauds. Branches have been advised to comply with ‘Know Your Customer’
i.e. KYC norms so as to prevent occurrence of frauds.
3.1 KNOW YOUR CUSTOMER :
• Determine and document the true identity of the customer- whether individual or firms or
companies - who establish relationships, open accounts or conduct significant business
transactions. Obtain basic background information on customers.
• Obtain and document any additional customer information, commensurate with
assessment of risk posed by customers’ expected use of bank’s products and services like
copy of trade license, CST/ST registration papers etc.,
• Protect the bank from the risks of doing business with any individual or entity whose
identity cannot be determined or who refuse to provide information, or who have
provided information that contains significant inconsistencies which cannot be resolved
after due investigation.
3.1 CUSTOMER IDENTIFICATION
Identification is the act of establishing who a person is. In the context of KYC,
identification means establishing who a person purports to be. This is done by recording the
information provided by the customer covering the elements of his identity( i.e. Name and all
other names used, and the address at which they can be located). This is further followed up by
proper introduction.
3.2 CUSTOMER VERIFICATION- PRE SANCTION/POST SANCTION
Verification of identity is the process of proving whether the person actually is who he
claims to be. In the context of KYC, verification is the process of seeking satisfactory evidence
of the identity of those with whom the bank does business. This is done by carrying out checks
about correctness of the information provided by the customer and also the seller to whom
payments are being made- especially in case of our retail lending schemes.

3.4 DOCUMENT VERIFICATION

The documents tendered by the prospective customer should be subjected to close
scrutiny and due verification should be carried out by cross referencing and linking with other
and by other suitable methods so as to establish the genuineness of the same.
3.5 CASH TRANSACTIONS
Cash transactions of Rs 10 lacks and above in any advance account are to be recorded
and reported to the concerned Regional Office on fortnightly basis. Records of all such
transactions are to be maintained in separate register and made available to internal/external
inspectors/ auditors/concurrent auditors for inspection/specific scrutiny.
Branches must obtain following, not only in case of applicant borrower but
also in respect of the guarantor, wherever proposed, and verify the same.
(a) Employment details, job specifications, name and address of the employer, length of service.
(b) Proof of residence of the applicant borrower and the guarantor proposed.
(c) Source of income/ annual income.
(d) Details of assets owned e.g. House etc.
(e) Other personal details e.g. Qualifications, marital status etc., be obtained
(f) The applicant borrower is interviewed and detailed remarks of such an interview be made in
the application form itself by the officer concerned who interviewed him/her under officer’s
signatures and mentioning date of interview and date of putting the remarks.
(g) Other extant guidelines, as under, for considering an application for sanction of an advance,
must also be followed without fail:
(I) Obtaining report on the applicant borrower in form 135 and verification thereof.
(ii) Legal opinion and scrutiny of documents/title deeds.
(iii) Asset verification and verification of end use.
(iv) Obtaining report from existing bankers.
(v) Gathering market information etc.
(vi) Creating equitable mortgage on the basis of deposit of original title.
DEPOSIT PRODUCTS:-
1) Savings bank deposit

2) Current account

3) Fixed deposit

4) Institutional wholesale deposit

5) Baroda rawarawa (recurring) deposit

6) Senior citizen savings deposit

4.1 SAVINGS BANK DEPOSIT FOR MANY OTHER BANKING RELATIONSHIPS:

Suitable for: Individuals, Salaried people, Minors, Trusts, Pensioners, Clubs, Societies, Non-
Resident Indians, PF and Trust etc.
Features:
• No minimum and maximum period

• Cheque book facility available

• Minimum balance for opening/maintaining an account: F$ 50/- ONLY

• Interest paid on the minimum balance during the month

4.2 CURRENT DEPOSIT: FOR BUSINESS MEN :
Suitable for: Traders, Businessmen, Minors over 14 years, Corporate, HUF, Proprietorship /
Partnership Firm, Trusts, Private / Public Limited Companies, Clubs, Associations, Societies,
Individuals etc.
Features:
• No minimum and maximum period

• Cheque book facility available

• Minimum balance F$. 500

• Easy to operate.

• Minimum formalities (hassle free) while opening of your account.

• No restrictions on number and amount of withdrawals.

• Facility of Overdraft / Loan as per Bank's Extant guidelines.

Advantages to the customer
• Facility is available on 24x7 basis.
• Can make Payment from anywhere.
• Ease of operation and convenience.
• Can pay tax on behalf of the individual, firm or company.
• Instant Cyber Receipts for the Payment made.
• Can View past Tax Payments at any point of time.
• Baroda Connect Online e-Tax Payment services are free of charge.
Time of Payment
� This is a 24x7 facility and as such, the customers can make the Payments any time.
� Presently the cut off time is 8 p.m. from Monday to Saturday.
� The Payments made after the cut-off time will be accounted as next working day’s receipts.
Who can avail these Services?
� Customer of any of the Core Banking branch can avail this facility.
� The customers should be a registered user of Baroda Connect
- Bank’s e-Banking services.
� Customer must also be registered assesses with the
Department of Central Excise and Customs ( CBEC ) and assessed code should be uploaded on
NSDL site.
Customer to visit the Baroda Connect website
http://www.bobibanking.com
4.3 CURRENT ACCOUNT:
Current Deposits product is ideal for firm, companies, institutions, HUF, individuals etc., who
need banking facility more frequently. This is one of the most basic and flexible deposit options,
allowing transaction without limiting the numbers.
You may choose from:
• Baroda Advantage Current Account

• Baroda Premium Current Account (BPCA)

Baroda Premium Current Account-Privilege (BPCAP)
4.4 FIXED DEPOSIT:
FOR YOUR LONG TERM SAVINGS INVESTMENT LONGER THE PERIOD HIGHER THE
YIELD
• Suitable for: Individuals, Salaried class, Traders, Businessmen, HUF, NRIs,
Professionals, Pensioners, Corporate, Charitable Trusts, Educational Institutions,
Voluntary Organization etc.
Features:
• Higher yield than Short Deposit with Easy liquidity.

• Access to Safe Deposit Lockers

• Accepted as a Security by Govt. Department

• Accepted as margin for Non-fund based facilities.

• Nomination facility available

• Easy transfer of accounts from one branch to any other branch of the bank.

• Prepayment is allowed as per norms

4.5 INSTITUTIONAL WHOLESALE DEPOSIT:
AN IDEAL OPTION FOR ALL YOUR TRANSITORY SAVINGS TO MEET YOUR
REQUIREMENTS
Suitable for:
Corporate, Voluntary Organizations’, Institutions etc.
Features:
• Minimum deposit amount of F$.100,000/-

• From a minimum period of 15 days to a maximum period of less than 12 months.

 • Facility of Overdraft / Loan against deposit amount (up to 90% of amount of the deposit
at @2.5% per annum over deposit rate) to meet short-term requirement as per Bank's
Extant guidelines.

• Prepayment of deposit amount allowed affording interest at @1% below the rate
applicable for the period deposit has run with the Bank with a minimum charge of F$10.
Where interest payable is less than above deduction no interest will be paid.

• However, there will be no Penal Interest, if the prematurely withdrawn deposit is

reinvested for a period longer than the remaining period of the original contract of the
deposit.
4.6 RECURRING DEPOSIT:
FOR A FIXED AMOUNT : REGULAR SAVINGS WITH HIGHER YIELD

Suitable for:
• Individuals, Students, Minors, Salaried class, Factory Workers, Traders / Businessmen,
Clubs, Associations, Educational Institutions, Housewives and others.
Features:
• Minimum deposit amount of F$ 25/- per month or in multiples of F$ 25/-.
• The number of monthly installments can be minimum 12 or in multiples of 12 i.e., 12, 24,
36, 48, 60, 72, 84 and 120.

• The installment for any calendar month can be paid on or before the last working day of
that month.

• Installments are accepted at any of the branches of the Bank in Fiji.

• Facility of Overdraft / Loan (subject to minimum of F$500/-) against deposit amount (up
to 90% of amount of the deposit) to meet short-term requirement.

• Prepayment of deposit amount allowed affording interest at @1% below the rate
applicable for the period deposit has run with the Bank with a minimum of F$ 10. In case
of prepayment before one month no interest will be paid.

• Interest compounded half-yearly

• Nomination facility available.

4.7 SENIOR CITIZEN SAVINGS DEPOSIT :
For Senior Citizens
Salient features:
• Total waiver of all Fees / Charges.

• Attractive Interest of 1.10% p.a.

• Free Cheque book facility.

• Free collection of all Cheques/Instruments Fiji wide.

• Free Transfer of funds Fiji wide.

• Minimum Balance F$20 only.

4.8 For Charitable Institutions, ReligiousOraganisations, Trusts, NGO's, Employees
Unions, Voluntary and Sport Organizations’:
Salient features :
• All foreign remittances would be credited without any charges.

• Free collections of instruments payable within Fiji.

• Free Cheque book facility.

• Instant Cash payment up to F$ 1,000/-.

• Any number of withdrawals without any charge/fee.

• Unrestricted number of transfer of funds from your saving bank account to another
account Fiji wide.

• Attractive Rate of Interest @ 1% p.a. on Cheque Account & above all Excellent
Personalized Service.
VALUE ADDED SERVICES:-
1) Baroda Internet Banking:
"Baroda Connect" is an internet banking facility introduced as an alternative delivery channel for
rendering effective customer service on 24 X 7 basis. It offers unique customized services to
both Retail & Corporate customers.
All customers can register under Baroda Connect for View and / or Transaction facility
Under VIEW facility customer can
• View Account summary of all operative, deposit and loan accounts

• View all multiple Account information online with a single userid

 • Get Account statements
Under Transaction facility customer can (in addition to the above VIEW facilities)
• Transfer funds immediately or schedule for a future date to self linked and third party
• Pay through Online Tax - Direct and Indirect taxes online such as Excise Duty, Service
Tax, Customs Duty, Income Tax etc.
• Pay through Baroda Easy Pay - utility bills like electricity, mobile etc , Donations,
Subscription, Travel plan booking online

• Book Rail Ticket - IRCTC

Baroda Connect facility is FREE of charge

Baroda Connect is a fully secured 128 bit SSL site duly certified by Verisign
1) Baroda Bill Pay
Baroda Bill Pay - is a useful service that provides you a single point of contact for all your
payment needs.
At Baroda Bill Pay customer can pay your bills and make other payments online. Instead of
writing a cheque each time, now they can use any device connected to the Internet (computer,
kiosk, etc) and make payments with the click of a mouse.
In effect, through Baroda Bill Pay they can now make All Your Payments at a Single Location,
anytime.
Currently Baroda Bill Pay is available in Mumbai, Delhi, Pune, Ahmedabad, Bangalore,
Chennai, Hyderabad and Kolkata.
2) Money Transfer Service Scheme - Western Union
Bank of Baroda is committed to continuously enhance its offerings with innovative products &
services leveraging advanced technology to provide maximum banking convenience to its
customers spread around the globe.
BOB new Money Transfer Service is a boon to NRIs and their families as well as visiting foreign
tourists and students in India. In a strategic tie-up, Bank of Baroda brings inbound instantaneous
inward remittance to customer doorsteps under Money Transfer Services (MTS) Scheme of RBI.
Key Benefits
• Instant payment of Foreign Inward Remittance, either in cash or by DD/PO/Credit to
savings A/c to individual beneficiaries in India within minutes after the sender has
effected the remittance.
 • Hassle free payment to beneficiary against photo identification.

• No charge is levied to Beneficiary.

• Neither the sender nor the receiver has to have a Bank Account.
1) Baroda Remit Xpress
In keeping with the Bank’s goal of emerging as a true international bank of India, the Bank has
launched an Online International Money Transfer Service – “Baroda Remit Xpress”. Bank has
enhanced the offerings to the NRIs. It would provide NRIs a unique and robust online remittance
solution from USA, UK and Eurozone. The services are supported by the highly professional
team to offer you complete peace of mind.
2) NRI SERVICES
LENDING TO RETAIL CUSTOMERS:-

5.1 WHAT IS LENDING:

When a bank agrees to place funds at the disposal of a borrower, either against a tangible
security or not, but against a promise to repay the amount at a future date with interest for the
amount used for the period, bank is said to have lent the money.
The lending or placement of funds can be by way of 'Demand Loan', repayable on demand
or 'Term Loan', repayable over a period of time at agreed intervals. It can also be by way of an
overdraft where a 'credit limit' upto the amount to be lent is set in the current account or a 'cash
credit account', where against security of stocks or receivables 'limit' upto sanctioned level of
lending is made available to the borrower in a form of running account allowing withdrawals
upto the limit as per his requirements.
5.2 NEW AVENUES AVAILABLE:
(i) Traditionally banking is associated with raising of resources from public to lend them to
needy and deserving borrowers. Hence lending used to constitute major portion of resources
deployment.
(ii) With the government/Reserve Bank of India using the two tools of credit control, namely
maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR), a large share of
deposits collected is 'preempted'. The banks are required to maintain CRR presently 4.5% of Net
Demand & Time Liabilities (NDTL) and SLR presently 25% of NDTL by way of cash, 3
balances with Reserve Bank of India or invest in government debt securities. Hence out of the
total funds collected roughly 29.5 % are deployed in meeting statutory requirements.
(iii) Now banks are also permitted to invest in shares of corporates upto a certain limit via
primary market route i.e. by applying for new shares. This has opened up a new avenue, since a
judicious investment can earn the bank very good returns on the funds deployed.
(iv) Besides meeting the statutory requirements, banks sometime invest in gilt edged or
government/government backed securities over and above minimum requirement, when the yield
on such securities is attractive.
(v) Leasing of assets is an activity which banks are now allowed to undertake. In this case, bank
earns lease rentals which are quite attractive, besides getting tax incentives. Hence, there could
be a demand on bank's resources from this avenue.
(vi) It is, therefore, very essential to understand and appreciate the fact that in today's context the
amount raised by the bank, could be deployed in various ways and it need not deploy its
resources only by way of lending.
5.3 WHY LENDING:
Lending by banking sector, especially by public sector/ nationalised banks assumes greater
importance, because only these banks can make credit available to needy, small borrowers.
Banks have to play an important role in employment generation, poverty alleviation and nation
building and has helped many small scale industrialists, assisted farmers and encouraged small
borrowers/artisans to sustain their small businesses.
5.4 IMPORTANCE OF LENDING:
(i) It constitutes major part of bank's assets.
(ii) It earns substantial income to the bank by way of interest, discount and commission.
(iii) The borrowers to whom banks finance, generally give deposit and other remunerative
business to the bank, like remittances, collection, foreign exchange, merchant banking etc.
(iv) Banks also get non-fund based credit business from these customers like guarantee, letters of
credit etc. on which bank can earn handsome commission.
5.5 VARIOUS METHODS OF LENDING :
(i) Various committees have been set up by RBI to suggest the methods of lending. Following
are some of the methods of lending introduced in banks from time to time:
(a) Tandon / Chore committee recommendations
(i) First method of Lending
(ii) Second Method of Lending
(b) Nayak Committee Recommendations for SSI Industries
(c) Vaz Committee Recommendations
(d) OUR BANK’S PERMISSIBLE BANK FINANCE SYSTEM
VARIOUS METHODS OF LENDING:
The extent upto which the working capital gap can be financed by the bank, will depend upon the
method of lending
(A) First Method of Lending (I METHOD):
Under the first method of lending, the borrower is required to contribute a minimum of 25% of
the working capital gap from the long term sources. The balance amount i.e. 75% of the working
capital gap represents the maximum permissible bank finance (MPBF). Where the net working
capital is more than the amount required to be provided by the borrower, the maximum
permissible bank finance would get reduced to that extent. To ensure compliance under this
method of lending, the current ratio of the concern should not be less than 1.17:1.
(B) Second Method of Lending (II METHOD) :
The second method of lending stipulates that the borrower is required to contribute a minimum
of 25% of the total current assets from the long term sources(Net Working Capital) irrespective
of the working capital gap. The maximum permissible bank finance will, therefore, be working
capital gap less the amount to be so contributed by the borrower. Where the net working capital
is more than the stipulated minimum contribution, the maximum permissible bank finance would
get reduced to that extent. To ensure compliance under this method of lending, the current ratio
of the concern should not be less than 1.33:1.
(C) Nayak Committee Method :
(a) Under this method originally proposed for SSI borrowers and later made applicable for all
borrowers with Fund based Working Capital limits upto Rs.5/- crore, the computation is made at
20% of projected gross sales as under.
(b) The gross working capital is uniformly assumed to be a minimum of 25% of projected gross
sales. On this, the borrower is required to maintain a margin equivalent to 20% of gross working
capital
(D) PERMISSIBLE BANK
5.6 CREDIT MANAGEMENT:
1.5.1 HEALTH OF CREDIT PORTFOLIO:
Expansion of credit without looking to the aspect of health of the credit portfolio will not prove
to be profitable.
1.5.2 FOLLOW-UP:
It is very essential that not only fresh advances are granted judiciously, but the existing advances
already sanctioned / disbursed are also followed up / reviewed at regular intervals.
1.5.3 STAGES IN CREDIT DEPLOYMENT:
Some stages can be distinguished in credit deployment. Pre- sanction appraisal, sanction,
completion of documentation, disbursal, post sanction scrutiny, post sanction inspection and
monitoring, timely review, noting of signs of problems in the account and sorting them out
looking for indications of incipient sickness and taking steps for averting them, nursing and
rehabilitation of sick but viable units and recovery process are important steps in any credit
deployment.
Protection:-
6.1 Banks Paying Customers to Take Overdraft Protection:
1. If you set up direct deposit the bank will give you $100.
2. If you set up overdraft protection the bank will give you $25.
3. If you activate online bill pay the bank will give you $25.
Nearly half of bank customers responding to pay a fee for the service to ensure that debit card
transactions will be approved even if their account is overdrawn. New federal regulations went
into effect on August 15 requiring banks to get permission from customers before paying debit
card overdrafts and charging a fee for the service.

1.2 Financial consumer protection in India

The Report of the Committee on Financial Inclusion reveals that, despite a large banking system
and cooperative credit network, many poor households in India lack access to financial services.
While the government and Reserve Bank of India (RBI) have taken steps to establish a widely
distributed presence of bank branches, India’s large population has made it difficult to ensure
financial services are accessible to all those who need them.
Many banks do not seek out poor people as customers because poor people typically do not
figure into banks’ business strategies to expand and improve their operational and financial
performance. Over the last three years, the Reserve Bank of India (RBI) and the Government of
India have adopted financial inclusion as a policy objective and have taken actions to move
toward the goal of universal access to financial services. They have accepted branchless banking
as a feasible proposition for acquiring clients and delivering services. On a global level,
branchless banking has adopted both bank-based and nonbank-based models; however, only
bank-based models are permitted to operate in India

Regulators perceive high risks from nonbanks offering banking services,

branchless banking possible beyond the automated teller machine (ATM) network. Today,
Indian banks seem to encourage clients to stay away4 from bank branches even as their clients
continue to receive improved financial services. Services through ATMs, internet and mobile
phones have made it possible to improve service quality, reduce the time spent by customers
putting through transactions, and reduce traffic in branches. Branchless banking channels include
(i) ATMs, (ii) electronic banking based on the Internet, (iii) banking correspondents and banking
facilitators, and (iv) mobile banking. ATMs and Internet banking address the needs of the urban
population, which has high incomes and little time to spend going to the bank, better than they
address the needs of the rural poor. However, ATMs and Internet banking can also be used to
improve access to financial services to the rural poor.

2. Trends in Branchless Banking

2.1 Branchless banking models directly operated by banks
ATMs have caught the fancy of both banks and clients. Most new private sector banks in India
have more ATMs than branches. Ease of dealing with customers efficiently and the ability to
account for transactions in real time has made ATMs an indispensible part of banking.

Customer protection issues involving ATMs stem from both technology and fraud. While
customer awareness could reduce, Remote monitoring of ATMs, repeated cautionary messages
to ATM users, and security-related screen prompts while using ATMs, etc., tend to reduce ATM-
related problems for customers. Indian Bank has introduced biometric ATMs to overcome the
traditional problems associated with ATMs. This is being tested in rural areas.

ECGC:-

It is EXPORT CREDIT GUARENTEE CORPORATION. It is an instrument that

gives a protection to the customer. Basically it is for foreign exchange. Bank give
protection against exporting.
i.e:- If customer is exporting the goods worth rs 50,00,000,so if the transaction is
from bank then bank providing this protection that if the receiver will not give the
amount then bank will give the amount.
INSURANCE:-
it is a protection in loans and advances. Insurance is the protection basically for
loan purpose. If bank has given loan to the customer then bank will insist to the
customer for taking the insurance, so after death of that customer his childen will
not suffer.
i.e:- If one person has taken the housing loan then bank will insist him to take
insurance, because if person has died, then his children should not have to pay
anything for that loan, by that insurance amount the money can be recover. And his
children cannot suffer also.
 Investment Savings Bank
Products of Investment Savings Bank:
• Certificates of Deposit (CD)- Investment Savings Bank CDs are available to any individual, organization, corporation. CDs have a
term ranging from 7-31 days to 5 years. CDs of Investment Savings Bank are characterized by a very high liquidity. They can be
cashed at any time . There is no monthly service charge on checking amount and time deposit are offered with higher interest rate
of return.

• Checking Account- Checking account is available to anyone with 18 years of age or older there is no monthly service charge and
all funds are insured up to $100,000 Service Charge will be assessed.

• Savings Account- The Passbook Savings Account of Investment Savings Bank is available to any individual, organization or
corporation. $25 is required to open and maintain an account. Interests are compounded daily and are posted quarterly. There is no
monthly service charge on checking account and loan can be taken against the account. \

• Visa Credit Cards- Investment Savings Bank issues VISA Credit Cards to any person above 18 years of age. Minimum credit
limit in case of VISA Classic and VISA Gold are respectively $500 and $2000 respectively.

• Individual Retirement Accounts (IRA)- Investment Savings Bank's IRA is available to any earning person who is 18 to 70.5
years old. The minimum investment varies from $100 to $500. Funds can be withdrawn by individuals 59.5 years older. Reasons for
Favoring Investment Savings Bank:

Saving Versus Investing

Most of the people probably have savings accounts with ATMs to access their hard-earned cash and be able to store
away any extra cash in a place a little safer than a mattress. A few of you may even have some stocks or bonds.

inflation
The bank may pay you 5 percent interest a year on money, if inflation is at 4 percent though, investment is only
growing at a mere 1 percent annually.
Saving and investing are often used interchangeably, but they are quite different!
Saving: Is storing money safely, such as in a bank or money market account, for short-term needs such as upcoming
expenses or emergencies.
Typically, earn a low, fixed rate of return and can withdraw money easily.
Investing:
Is taking a risk with a portion of savings such as by buying stocks or bonds, in hopes of realizing higher long-term
returns.
Unlike bank savings, stocks and bonds over the long term have returned enough to outpace inflation, but they also
decline in value from time to time.
The rate of returns and risk for savings are often lower than for other forms of investment.
Return is the income from an investment.
Risk is the uncertainty that will receive an expected return
Savings are also usually more liquid. That is quickly and easily convert investment to cash.
The decision about which investment to choose is influenced by factors such as yield, risk, and liquidity.
Investments may produce current income while the investment through the payment of interest, dividends or rent
payments.
When sell an investment for more than its purchase price, the profit is known as a capital gain, also called growth or
capital appreciation.

Levels of liquidity
Here are five areas to review to help understand your bank’s liquidity position.
1. Net Non-Core Funding Dependence Ratio - This ratio measures the degree to which the
bank is funding longer-term assets (loans, securities that mature in more than one year, etc.)
with non-core funding. Non-core funding includes funding that can be very sensitive to
changes in interest rates such as brokered deposits

4. Diversification of funding sources - A bank with strong liquidity has a strong core deposit
base, established borrowings lines, and procedures in place for acquiring internet-based or
other forms of emergency borrowing.

5. External Forces - Economic conditions, competition, marketing efforts, etc. have a material
impact on the need for liquidity going forward.

What investors must understand about risk

and reward
to understand that earning a high return at low risk is incompatible. If want to create wealth ,
need to take some calculated risks and can’t be totally risk averse.
It will be help to understand the trade-off between risk and reward, and also help to understand
where on the risk-return spectrum some popular investment options fall.
The trade-off between risk and reward
Earning a high return but while taking on very low risk is not possible. It’s a balance that
investors struggle to achieve. to generally get high returns only when take higher than usual risk.
Take calculated risks – reward must be compelling
Exposing oneself to risk is not something one should do blindly. It must be done in the context of
what the expected pay-off might be. If the reward is compelling enough, then it probably makes
sense to take on the risk. Otherwise, it is not worth it.
The bank FD will pay a slightly higher return because the government guarantees only part of the
deposit so there is the risk of the bank failing, even if it is a very small risk. However, the
company FD will pay the highest return because the risk perceived in lending to the company is
the highest

growth and income fund

growth and income fund

Definition

Tax Efficiency
What Does Tax Efficiency Mean?
An attempt to minimize tax liability when given many different financial decisions. There is a wide variety of tax-
efficient vehicles, including tax-efficient mutual funds, irrevocable trusts and tax-exempt commercial paper.
ethical investment

Hide links within definitionsShow links within definitions

LUM SUMS
lump sum, in general, is a single payment which satisfies all of the benefits owed to the recipient. Lump sum
payments are often seen in cases of corporate retirement packages, lottery winnings

Bank of Baroda Saving Accounts

Bank of Baroda has seven types of savings account namely Baroda Centenary Savings Account, Savings Bank Account, Super
Savings Account, Nagrik Bachat Khata, Baroda Salary Advantage Saving Account, Baroda Advantage Savings Account and
Baroda Bachat Mitra. These accounts have been designed to cater to the needs of different people.

The Baroda Centenary Savings Account is a superior savings account with key features like auto sweep facility, auto reverse
sweep benefit, free collection of outstation cheques, etc. The Savings Bank Account is the simplest deposit option with zero
balance facility and is easy to operate. However the bank has certain terms and conditions for this account like minimum balance
to be maintained, etc. Super Savings Account is for high value resident customers. The account can only be opened at banks
computerized branches at Metro and Urban centers. The main features of the account include no charges for issuance of demand
drafts/ Banker’s cheques, free transfer of funds through mail transfers / telegraphic transfers, free Baroda Money Express, etc.
Nagrik Bachat Khata is a no frill account without any hidden charges. Baroda Salary Advantage Saving Account is a special
salary account with an in built overdraft facility for the salaried persons. Baroda Bachat Mitra can be opened single or jointly.
There is an overdraft facility secured by assurance of term deposit in this savings account.

Bank of Baroda : Baroda Centenary Savings Account

• This product is available at all CBS branches in India.

• Auto sweep: Auto transfer of funds exceeding certain fixed amount to Term Deposit to provide high yield on such
funds.
• Auto reverse sweep in case of need to honour Cheque to Savings account from Term Deposit.
• Free collection of outstation cheques drawn in favour of account holder (postage out of pocket expenses are
recoverable).
• IMMEDIATE CREDIT of outstation cheques upto Rs.25,000/-, as per norms.
 • FREE DEBIT CARD.
• Interest is paid on Quarterly basis.

Collactive investments
A collective investment scheme is a way of investing money with others to participate in a
wider range of investments than feasible for most individual investors, and to share the costs and
benefits of doing so.
Collective investments are promoted with a wide range of investment target specific geographic
regions Funds are often selected on the basis of these specified investment aims, their past
investment performance and other factors such as fees.

Safe guard:-
1. Do not keep your cheque book and cards together and ensure proper safe custody of
your cheque books, pass book and cards.

2.Do not keep the blank cheque leaves signed.

Do not allow anyone else to use your card, PIN, password or other security information.

1. Keep your card receipts safe and dispose them off carefully.

2. Never give your account details, password or other security information to anyone unless
you know who they are and why they need them and thereafter keep the matter followed
up so that the same is not misused.

3. Not to issue cheque without adequate balance/ maintaining minimum balance as specified
by the Bank.

4. Send cheques and other financial instruments by Registered Post or by reputed courier.

5. Bring pass book while withdrawing cash from savings bank account through withdrawal
slip. Get pass book updated from time to time.

6. Use nomination facility.

7. Note down account numbers, details of FDR, locker numbers, etc., separately.

8. Inform change of address, telephone number, etc., to the Branch.

 9. Inform loss of demand draft, fixed deposit receipt, cheque leaves book, key of
Locker, card etc., immediately to the Branch.

10. Avail standing instructions facility to repeat transactions.

11. Provide feedback on our services.

12. Pay interest, installments, locker rent and other dues on time.

13. Avail services such as ATM, ECS, EFT, RTGS etc., if offered by the branch.

14. Bring any deficiency in services to the notice of the branch.

15. Do not record your specimen signature either on pass book or on cheque book.

16. Not to introduce any person under any circumstances who is not personally known
to you for the purpose of opening account.

17. Give a notice before canceling the payment of a cheque

18. If you act fraudulently or show negligence, you will be responsible for all losses on
your account.
For Precautions while using internet banking facilities,
1. Visit our internet banking site directly.

2. Avoid accessing the site through a link from another site and verify the domain name
displayed to avoid spoof websites.

3. Ignore any e-mail asking for your password or PIN.

4. We suggest you not to use cyber cafes to access our internet banking site.

5. We advise you to update your PC with latest anti virus software regularly.

6. A suitable firewall installed in a computer to protect your PC and its contents from
outsiders on the internet would be an added security measure.
TERMINATION OF RELATIONSHIP:-
8.1 Mental incapacity:
(I) Person incapable of understanding the nature of his action and forming a rational judgment as
to its effects upon his interest. Therefore, the law provides that all the contracts made by a person
in a mental incapacity state are void.
(ii) When a mental incapacity approaches the branch for opening an account, the branch should
exercise due care and may refuse to open the account, if the branch is satisfied that the person is
incapable of entering into a contract.
(iii) Payment of a cheque to a mental incapacity may be made after taking proper witness.
8.2 Insolvency:
1)The Bank is bound to stop operations on the account of a customer in the event of his
insolvency. As soon as an Official Receiver or an Official Assignee is appointed, the Bank
should register the Court's order and act in terms of instructions contained Therein.
2) Insolvency of an accountholder revokes the bank's authority to pay the cheques drawn by him
and the balance at credit of the account vests with the official assignee or official receiver as
from the date of presentation of the petition or from the act of insolvency. The Bank would be
justified if payment is made after this date,
3) If the wife of an discharged insolvent wishes to open a bank account to carry on the business
formerly conducted by her husband, it is advisable to obtain the Official Receiver’s consent
before opening the account.
4) Insolvency of an agent does not affect the relationship of the principal and agent.
During the insolvency proceedings, no creditor can have any remedy against the property of the
insolvent in respect of his debts or commence any suit or legal proceedings against the property
without the leave of the Court.
(5) A person is declared insolvent by the court, when he fails to pay his debts. Declaration of
insolvency renders invalid all the transactions entered into subsequently and already entered into
within six months.
(6) Branches should not open insolvent’s account nor should money be advanced to an
discharged insolvent.
(7) As soon as a person is declared insolvent, operations in his existing account should be
stopped forthwith and balance of such
• Act of insolvency - by a partner and by a firm:
A cheque signed by a partner known to have committed an act of insolvency should not be paid
until confirmation of other partners is obtained.
If there is a credit balance in the account of a firm, a partner of which has become insolvent, it
can be paid to the other solvent partners jointly, for it is their responsibility to account to the
Receiver for the insolvent partner's share in the firm's assets.
After notice of the commission of an act of insolvency by a firm, cheques drawn by it should
only be paid to it or its assignees. Payment of cheques drawn by the firm and payable to a third
party will not be in order as such payments cannot be upheld in a court as against the Official
Receiver. The insolvency of a firm involves the insolvency of the individual partners and
therefore, all steps a bank takes with regard to the firm's account should also be taken in respect
of the personal accounts of the partners.
Insolvency of a joint accountholder:
(I) Insolvency of a joint accountholder cancels any instructions given as regards operations on
the account.
(ii) Instructions from Regional Office should be sought when the branch comes to know that one
of the joint accountholders has committed an act of insolvency. The branch must indicate the
source of information and the details of the alleged act of insolvency.
Insolvency of a director:
In case one of the directors becomes insolvent or an discharged bankrupt, he cannot act as a
director of a limited company. The branch should not allow further operations in the account by
that insolvent director.
8.3 Death:
Death of a trustee:
On the death of one of the trustees, the trust property passes to the other trustees as per the
provisions of the trust deed. If the deceased is the sole trustee, his executor has no right to
recover the trust money. The executor, however, has the right to appoint a new trustee, provided
the deceased trustee has in his will specifically authorized such an appointment

Death of a customer:
Notice of the death of a customer determines the Bank's authority to pay cheques or act on his
other instructions. Credit facilities extended and standing instructions noted should be cancelled
and the position should be explained to the beneficiary concerned. The Bank would be protected,
if cheques are paid after the customer's death but before receipt of notice

Death of a partner:
Death of a partner dissolves the partnership. However, for the purpose of winding up of the firm,
the bank may allow the surviving partner(s) to operate the firm's account, if the account is in
credit. In case some cheques are presented for payment, which were drawn by a partner before
his death, the branch may honors the same provided the surviving partners do not countermand
payment of those cheques. Branch should also obtain the confirmation of the surviving partners
in respect of cheques drawn by the deceased partner.