janalakshmi financial services pvt ltd coca report

8/9/2019 Janalakshmi Financial Services Pvt Ltd Coca Report

1/72

Janalakshmi Financial ServicesPvt. Ltd (JFSPL)

Bangalore,

IndiaLegal form: NBFCOctober 202

!ode of !ond"ct (!o!)#ssessment

#chievem $a%im" Scor

e

Integrity, Governance and HR Strategy 30% 24.3

Comliance !it" g#ideline$ ertaining to 0% &3.3

'((ectivene$$ o( client ed#cation e((ort$, and )0% *.0

Overall !o! 00 '.

*isit dates: 0+ October 202

$+!,-L Janalakshmi


2/72

erenice da /ama ,ose +erenicem-cril. com $r. *.S.,adhakrishnan !10Panka 3"mar ana/m-cril. comrad"ari$"nan.v$

/anala$"mi. comPravir Jha ravir /"a m-cril. com Phone:45+0'0+

625700Shraddha Jha $"radd"a/"a m-cril. com8el: 45 26 290 5657 Fa%: 45 26 290 520
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


3/72

Str"ct"re

$$e$$ment tool and (rame!or

Code o( Cond#ct er(ormance 1Rationale

Strengt"$ 1 i$$#e$

Introd#ction and +acgro#nd

icronance olicie$

rod#ct$ 5 loan, in$#rance and ot"er

-ntegrit; /overnance and ith g"idelines=ertaining to clients

o Client 7rigination and targeting

o 8oan rai$al roce$$

o 8oan rod#ct (eat#re$ and ricing

o 9ran$arencyo Re$on$i+le lending

o Grievance mec"ani$m


4/72

1ffectiveness of client ed"cationefforts and a>areness

o Client ed#cation

o Client a!arene$$ and ot"er re$#lt$

nne:

o role o( t"e Boardmem+er$; S"are"olding

attern

o Client !arene$$ (rom Fieldinteraction$

o et"odology and Samling lan

o $$e$$ment tool< !eig"t,$core$ and er(ormance

o ++reviation$

o rivacy o( cli ent in(ormati on

2 Janalakshmi Financial Services Pvt. Ltd


5/72

#ssessment tool and

3analakshmi Financial

#ssessment 8ool

9"i$ a$$e$$ment #$e$ a $coring tool derived (rom t"e =nied Code o(

Cond#ct (or mem+erFI$ o( Sa->"an and FIN and t"e RBI g#ideline$ and Fair ractice$ Code (orNBFC FI$.

9"e tool not only cover$ t"e ind#$try Code and t"e a+ove-mentionedg#ideline$ in letter +#t al$o delve$ dee into i$$#e$ o( ad"erence in $irit.9"e tool i$ arranged #nder t"ree +road "ead$BI@$ in$tr#ction$

A$"o!n on t"e rig"t o( t"e +o: +elo!. 9"i$ tool cover$ t"e$e +y (itting t"em into+roader arameter$ and cat#ring er(ormance on t"em a$ !ell a$ ot"er indicator$ interm$ o( roval, >oc#mentation, >i$$emination and 7+$ervance.

Parameters and -ndicators in $+!,-L S-@- reA"irements covered in this-ntegrit; /overnance and ith reg"lations

=ertaining to Comliance $tat#$ o( FI vi$--vi$ late$t RBIClient 7rigination and targeting.0% 8oan rai$al roce$$.0% 8oan rod#ct (eat#re$ and ricing)0.0% 9ran$arency)0.0% Re$on$i+le lending

.0% Grievance mec"ani$m.0% rivacy o( client in(ormation

Client origination and targeting8oan arai$al roce$$

8oan ricing and tran$arency

Sta(( +e"avio#r

Relation$"i management 1 grievance redre$$almec"ani$m

!lient 1d"cation 1fforts and FieldClient 'd#cation A'((ort$3% Client !arene$$ and ot"er Re$#lt$

8otal


9/72

!ode of !ond"ct

analakshmi Financial

Integrity,Governan

ce andHR

,ationale

FS $core$ "ig" in t"e Code o(Cond#ct Comliance a$$e$$ment!it" it$ $trong (oc#$ t"ro#g"o#t alllevel$ o( "ierarc"y on c#$tomer

'ective$$ o(

cliented#cation eort$

anda!arene

$$

75.&

'.0&

Strategy

Comliance !it"

g#ideline$ertainingto client$

''.5&

(riendly rod#ct$ and olicie$and it$ ad"erence to t"e RBIg#ideline$ and Fair ractice$

Code. FS "a$ al$o ac"ieved "ig" level o(

ad"erence on t"e Comliance !it"g#ideline$, d#e to a$$imilation o( t"e$irit +e"ind t"em and e((ort$ (romall (ield $ta(( to imlement t"em.

Slig"tly lo!er $core in Integrity 1Governance $tem (rom a lac o(

doc#mentation o( t"e$e goodractice$ in !ritten olicie$.

Client ed#cation e((ort$ are +eing#ndertaen $incerely +#t lo!a!arene$$ level$ on $aving$ anden$ion rod#ct$ indicate t"at moreem"a$i$ i$ needed !"en romotingt"e$e


10/72

!ode of !ond"ct

? analakshmi Financial

c"ievementa:im#m

and ot"er t"ird arty rod#ct$.


11/72

Strengths-ss"es

FS "a$ a$$imilated t"e val#e$en$"rined in t"e CoC at all level$o( t"e in$tit#tion 5 mo$t o( t"e$eare racticed at eld level, eveni( not (ormally doc#mented.

rincile$ o( t"e CoC are +acedcomletely +y t"e to

management and are incl#dedin orientation o( all $ta((. Be"avio#r i$ a ey $elling oint

(or FS 5 c#$tomer (eed+acindicated t"e good +e"avio#r o($ta(( a$ a ey loyalty oint.

C#$tomer$ raned FS "ig" (ort"e range o( nancial $ervice$rovidedJ +iometric $mart card$al$o remain a #ni#e $elling

oint o( FS.

>oc#mentation o( grievance$ i$ $ometime$overlooed, alt"o#g" t"e grievance$ areroactively addre$$ed +y +ranc" andregional $ta((.

8oan $anction letter !"ic" incl#de$ t"e

reayment $c"ed#le contin#e$ to +e in'ngli$" 5 c#$tomer$ are given a comletetran$lation in t"e $tate lang#ageJ "o!ever,t"i$ i$ $ometime$ di((erent (rom t"eiract#al vernac#lar.

Client a!arene$$ level$ on en$ion and$aving$ rod#ct$ need to +e imroved 5c#rrently c#$tomer$ are not !ell a!are o(

imortance o( IN n#m+er $a(ety,!it"dra!al roce$$ at 9 and !it"dra!allimit$J or +ene(it$ or en$ion o$t minim#mloc-in eriod.

Collection o( $aving$ in (ront o( ot"er gro#mem+er$ may a((ect rivacy, alt"o#g" FS$ee$ t"i$ a$ a o$itive (eat#re a$ it


12/72

enco#rage$ ot"er$ to $ave.

Code o( Cond#ct di$lay$ at+ranc"e$ need to "ave morevi$i+ility.


13/72

-ntrod"ction and

anala$"mi AFS !a$ $tarted +y >r. Rame$" Ramanat"an a$ an NG7 in

2002. 8ater in 200&, it +ecame a Section 2& comany called anala$"miSocial Service$ ASS and event#ally t"eromoter and FS@$ inve$tor$ e$ta+li$"ed an NBFC, anala$"mi FinancialService$, !"ic" +ecameoerational in 200*.

FS@$ target gro# con$i$t$ o( #r+an !omen in need o( nancial $ervice$ 5

rimarily credit (or !oring caital, +#t al$o $aving$, micro-en$ion$,inve$tment$ and remittance$. FS "a$ al$o entered into t"e "o#$ingnance, enterri$e nance and gold loan $ace .

FS $tarted it$ oeration$ in Bangalore, +#t "a$ e:anded to +ranc"e$ in

4? citie$ acro$$ India$ince 20)0.

FS "a$ laced $trong (oc#$ on tec"nology $ince incetion 5tracing it$c#$tomer$ via +iometric

a#t"entication, Core Baning Sol#tion, and adotion o( C#$tomer Relation$"ianagement$o(t!are (or tracing internal e(ciency level$.

FS@$ Board con$i$t$ o( )) mem+er$, incl#ding t"e C"airman >r.

Ramanat"an, t"e 6ice C"airman


14/72

-ntrod"ction andand t"e > 1 C'7. 7t"er Board mem+er$ comri$e 3 indeendent advi$or$and & inve$tor$.ASee Board ro(ile, nne:#re on Slide 3?.

9"e (oc#$ o( t"e Board "a$ +een to $teer FS to!ard$ a co#ntry-!idere$ence, and con$olidate

it$ o$ition a$ a leading #r+an FI.


15/72


16/72

$icroCnance#rea Selection

FS $tarted oeration$ in Bangalore, and e:anded to di$arate region$ - G#rgaon,ai#r, Coim+atore andC"ennai, (or ri$ diver$i(ication. It "a$ no! +ranc"e$ acro$$ 4? citie$.

'$ta+li$"ment o( ne! +ranc"e$ i$ over$een +y a Branc" ':an$ion Head !"o$e teamreare$ rea otential reort$. 9"e reort$ incl#de !eig"tage (or $econdary dataregarding #r+an o#lation A&0%, o#lation in t"e $ocio-economic $egmentaroriate (or micro(inance A30% and area o( t"e city A20%. rea $#rvey$ incl#de aintervie!$ !it" 300-&00 otential c#$tomer$ in recogni$ed $l#m$ to ma #nmet

demand.ranch str"ct"re

FS +ranc"e$ are monitored +y a Branc" Head ABH, and are divided into 2-3 Larea$M,eac" monitored +y an rea Head AH. FS@$ model i$ de$igned to $#ort m#ltilerod#ct o((ering$, "ence t"e re$on$i+ilitie$ o( c#$tomer creation, addition and$ervicing are clearly divided +et!een eld $ta(( called C#$tomer Relation$"i ':ec#tive$5 #ndertaing areting, Sale$ and Collection$ re$ectively ACR'-; CR'-S; CR'-C

Branc"e$ are $ta((ed !it" at lea$t one CR'-, and $everal CR'-S$ and CR'-C$ +a$ed on+ranc" otential.

!lient selection

FS target$ #r+an, lo!-income !omen, mo$tly !oring a$ dome$tic "el, (actory !orer$and doing $ome entrerene#rial activity eit"er alone or !it" (amily mem+er$. It i$com#l$ory t"at t"e alicant $"o#ld get at lea$t a &0% credit $core in FS@$ loanroce$$.

Loan =rocess


17/72

$icroCnance 'ac" +ranc" "a$ at lea$t ) CR'- !"o identie$ ne! area$ (or gro# (ormation and

liai$e$ !it" t"e #+lic, e:laining t"e term$ and condition$ o( FS@$ loan$ to t"em.

9"e C#$tomer Rere$entative$ -Sale$ ACR'-S$ t"en train intere$ted alicant$ over 2

day$. 9raining cover$ all detail$ and term$ and condition$ o( rod#ct$.


18/72


19/72

$icroCnance =olicies Collection$ are done +y a C#$tomer Service ':ec#tive 5 Collection$ ACR'-C (or a $etgro# o( centre$.

ttendance at mont"ly meeting$ i$ recoded t"ro#g" +iometric a#t"entication. Smart card $!ie$ in t"e 79 terminal are lined directly to t"e c#$tomer acco#nt$ int"e Core Baning

Sy$tem. 9"i$ revent$ any mani#lation o( reayment data and en$#re$ romtidentication and tracing

o( overd#e$. rinted receit i$ given to t"e c#$tomer and t"e CR'-C $ign$ t"eir lo ancard.


20/72

Loan

)0,000 Ba$ed on30,000 val#e

8oan $ie Ain-a:&,000-30,000 &0,000 5

9erm Amont"$ )2-24 mont"$ = to ) )2-3 )2-0Reayment (re#ency ont"ly B#llet ont"ly ont"lyGrace eriod Amont"$ I( di$+#r$ement in t"e

latter "al( o( t"e mont",N. Nil Nil

on t"e )$t mont"roce$$ing (ee )% ) R$. )000;- R$. )000;-Rate o( intere$t rate % 2)-23% 24% Aa#to 2% A8;

on gold 2% A+#ild #R A% 2% .a 2)-23% 24-2% 2-2*%'IR A% 2.0*% .aG#arantee; collateral

Gro# g#arantee Gol

Inventory

or R> Saving$ornament$#t

roertyA8

enalty on overd#e$ None None 24% .a. 24% .a.reayment 1 None None None 2% o( amo#nt reaidS"are in ort(olio on 30- 3 0 ) 0% 0%

Prod"ct Dame

Small/ro"=loans

1d"cation

LoansE

/old

Loans

Dano

Loan #"toLoanE

"ild G= and

Loan#gainstPro=ert;E

9arget =r+an !omen over )* year$':i$ting FS c#$tomer$

30,000-2 la"$


21/72

Loan9"e a+ove rod#ct$ comri$e 4% ort(olio. Remaining % ort(olio i$ con$tit#ted +y 'nterri$e Financial Service$ loan$ and"o#$ing loan$ A$ee ne:t $lide

E 8hese =rod"cts had not been rolled o"t at the time of the assessment visit and have not been eval"ated as =artof the !o! assessment.


22/72


23/72

Com#l$ory CIBI8 c"ec o( all alicant$ i$ done at t"eir co$t, !"ile a Fra#d Control =nit

o( FS inve$tigate$

all alication$. 9"ere i$ e:ten$ive #$e o( c"annel re(erral artner$ (or t"e$e loan$. 7#t$o#rced, RBI-certied recovery

agent$ are emanelled (or overd#e recovery, +#t $elected only a(ter c"ec$ regardingt"eir re#tation andoerational ractice$.

'mloyee$ o( 'FS +ranc"e$ are $creened e:tremely care(#lly !it" CIBI8 c"ec,

re(erence c"ec$, and+acgro#nd inve$tigation to avoid ri$ o( (ra#d.


24/72

-ns"rance $icro+Pensions-ns"rance FS "a$ tied # (or com#l$ory li(e in$#rance (or +orro!er$ !it" a: Ne! Kor 8i(e and

(or er$onal accident in$#rance Aotional !it" Ba/a/ llian.

8i(e in$#rance remi#m i$ R$. &0 er "ead er year, and 2 mem+er$ o( t"e (amilyAc#$tomer and $o#$e; c"ie( "o#$e"old !age earner are in$#red. Coverage i$ R$.2&,000 (or nat#ral deat", (rom !"ic" FS can ded#ct it$ loan o#t$tanding and t"eremaining +ene(it goe$ to t"e $#rviving mem+er. FS "a$ negotiated (or "ig"er ay- o#tto cover "ig"er $ie loan$, (or $lig"tly "ig"er remi#m$.

$icro Pensions 9"ro#g" a tie # !it" =9I IIS, FS "a$ o((ered it$ c#$tomer$ t"e otion o( inve$tingR$. )00, 200 or &00 er mont" in a micro en$ion $c"eme, !"ic" "a$ a loc in eriod o(& year$.

ayo#t +egin$ a(ter t"e c#$tomer "a$ reac"ed t"e age o( &* year$. 9"i$ i$ mareted a$a cro$$-$ell rod#ct lined to gro# loan$. 'ac" CR'-S "a$ a target to e:tend o#treac"o( t"i$ rod#ct to at lea$t 40% o( t"eir loan c#$tomer$.

C#$tomer$ can call a 24 "o#r toll (ree n#m+er to $ee clari(ication on rod#ct term$,+alance$, ret#rn$, etc.

Savings H anking !orres=ondent model FS "a$ leveraged it$ arent organiation SS to enter into a BC arrangement !it" :i$

Ban. SS $ta(( oerate (rom FS +ranc"e$ at marginal incremental co$t. C#rrently, only)&% o( $aving$ c#$tomer$ are e:i$ting +orro!er$ o( FS.

ro(ile i$ created in FS@$ Core Baning Sol#tion a$ !ell (or eac" o( t"e deo$itor$,

and $ta(( are e#ied !it" :i$ Ban@$ 7S terminal$ to do real time reorting o(


25/72

-ns"rance $icro+Pensionscollection$, directly $ynced to :i$ Ban@$ CBS, t"ere+y reventing any (ra#d.

C# $ t om e r $ $ a v e on d e m a nd , or imm e d ia t ely a (t er t " eir m o n t " ly lo an r e a y m e n t

m e e tin g$.


26/72

-ntegrit; governance and

Parameter #==roval@oc"men

@isseminat Observtation ionance

IntegratingSocial 6al#e$andComliance at

Good

Good

Good

oderateoderate

Good

Good

Good

Governance oderat N

Strategy 5H#man

Good oderat

Performance

IntegratingSocial 6al#e$

andComliance

at

In$tit#tional

Score

26.9& o"t of90&

Levels of internaliIation

level .7&.0 %

H#manRe$o#rce

Strategy

'7.7&

Governance

''.&

c"ievement


27/72

-ntegrit; governance anda:im#m


28/72

?-ntegrit; governance and-ntegrating Social *al"es and!om=liance at -nstit"tional level

!om=liance b; JFS

Not le$$ t"an *&% o( total a$$et$ o( FI FS i$ comliant !it" t"e *&% minim#m level o(#ali(ying a$$et$.ggregate amo#nt o( loane:tended (or incomegenerating activit; is 70&o( t"e total loan$ given

ggregate amo#nt o( loan$ e:tended (or incomegeneration i$ O?0% o( total loan$ . FS@$ loan$ are taen(or +#$ine$$ activity, +#t no (ormal #tiliation c"ec i$cond#cted

-ntegrating Social *al"es and !om=liance at -nstit"tional level

anala$"mi@$ to management "ad already alied mo$t a$ect$ o( t"e CoC Ae$eciallyt"o$e ertaining to (air

and aroriate treatment o( client$ in it$ oeration$ +e(ore t"e Code !a$ i$$#ed. (ter $igning t"e CoC, more em"a$i$ "a$ +een laced on imlementing it$ tenet$, $#c"a$ recr#itment

g#ideline$, avoidance o( over-inde+tedne$$, $etting # a grievance redre$$al mec"ani$m,rat"er t"an on

e$o#$ing it in !ritten doc#mentation

FS !a$ al$o roactive in c"anging it$ rod#ct term$ and condition$ in eeing !it" t"eRBI g#ideline$ and

en$#ring t"at it$ rod#ct$ and roce$$e$ !ere all !it"in t"e $coe o( t"e RBI Fairractice$ Code.

9"ere i$ $#(cient $#ervi$ory rigo#r (rom +ot" 7eration$ Area, Branc" and RegionalHead$ and Internal

#dit to en$#re t"at t"e tenet$ o( t"e CoC are +eing ad"ered to. 9"e C'7 i$ re$on$i+le


29/72


30/72

/overnance

FS "a$ ind#cted "ig"ly #ali(ied er$on$ !it" e:erti$e in inve$tment +aning, rating$and advi$ory $ervice$,

and cororate +aning in it$ Board. ll Board mem+er$ "ave +een active in t"eirengagement !it" FS at a$trategy-+#ilding level.

FS "a$ 3 indeendent director$ and & inve$tor director$ o#t o( a total o( )) mem+er$ o(t"e Board 9"e Board "a$ aroved t"e Code o( Cond#ct and t"e a#t"oried t"e C'7 to over$eec"ange$ in eeing !it"

it$ tenet$J t"e $ame alie$ to RBI g#ideline$ and t"e RBI Fair ractice$ Code. onitoringo( Grievanceredre$$al "a$ +een a$$igned +y t"e Board to t"e Head o( rod#ct$.

FS "a$ aointed an a#dit committee o( t"e Board !it" an indeendent director Ar.S#nil at"#r a$

c"airer$on.

FS "a$ maintained "ig" level$ o( tran$arency in it$ reorting to t"e micro(inanceind#$try a$$ociation FIN

and ind#$try in(ormation net!or$ lie icro(inance In(ormation ':c"angeAiParet.org

9ran$arency i$ en$#red in reorting and re$entation o( (inancial $tatement$ , !"ic"are $"ared on t"e

!e+$ite a$ !ell a$ on t"e net!or$ mentioned a+ove.

FS (ollo!$ t"e #dit and $$#rance $tandard$ i$$#ed +y t"e In$tit#te o( C"artered


31/72

cco#ntant$ o( India AICI. FS al$o ad"ere$ to Cororate Governance g#ideline$ given in t"e a$ter Circ#lar i$$#ed

(or NBFC-FI$ onCororate Governance vide CC No. )*?

FS intend$ to lace a reort indicating t"e e:tent o( comliance !it" t"e Code o(Cond#ct, $eci(ically

indicating any deviation$ and rea$on$ t"ere(ore, to t"e Board. Since t"ere "ave +een nonon-comliancei$$#e$ "it"erto, $#c" a reort "a$ not +een (iled yet, +#t i$ +eing lanned (or t"e end o(every (inancial year

$tarting arc" 20)3. FS management "a$ indicated t"at in t"e event o( any i$$#e$ o(non-comliance in t"einterim, t"e Board !ill +e in(ormed.


32/72

?-ntegrit; governance and


33/72

?-ntegrit; governance andade#ately trained d#ring t"e orientation in all a$ect$ covered in t"e CoC and RBIg#ideline$. RBI

g#ideline$ and Fair ractice$ Code are covered d#ring t"e mod#le on rod#ct detail$. In order to imrove retention level$, a $earate mod#le i$ +eing cond#cted d#ring t"eind#ction training,

e:cl#$ively covering a$ect$ relating to t"e CoC and $eci(ic c"allenge$ !"ic"oerational $ta(( mayenco#nter !it" regard to imlementation.

9"e CoC "a$ +een incororated in all relevant roce$$e$. ny c"ange$ to CoC are

comm#nicated to all FS

$ta(( t"ro#g" t"e relea$e o( an internal circ#lar +y #dit deartment a(ter !"ic" all $ta((can +e a#dited (orad"erence o( t"e $ame.

FS di$lay$ t"e CoC on t"e notice +oard o( all +ranc"e$ in vernac#lar and on t"e!e+$ite.


34/72

?-ntegrit; governance and


35/72

!om=liance >ith g"idelines

@oc"ment

@issemina

Client7rigination

Good

Good

Good

Good

Good

Good

Good

oderat Good

Good

Good

Good

oderat

8oanrai$al

Good

Good

Good

Good

Good

Good

8oanrod#ct(eat#re$ 1

9ran$arency oderate

oderate

oderate

Re$on$i+lelending

oderate

oderate

Grievance

oderate

rivacy o(client

Performance

Client7rigination

and

Score

9.9& o"t of)0&

Levels ofinternaliIation

rivacy o(client

targeting

'6.'&

8oan rai$al

in(ormation

72.0&

roce$$ 57.9&

Grievancemec"ani$m

'9.2&

Re$on$i+lelending

'7.9&


36/72

!om=liance >ith g"idelines8oa

nrod#

ct (eat#re$and

ricing

5.7&

9ran$arency

5.9&

#chievement $a%im"m


37/72

!lient Origination

and8argetingBorro!er$ ho"seholdincome(


38/72

"one veri(ication i$ done (or a $amle o( )&% c#$tomer$ to en$#re t"at t"e data

reorted +y t"em in t"e

CIS (orm i$ in (act correct, e$ecially on income and ot"er +orro!ing$.

$ (#nction$ o( mareting, $o#rcing and $ervicing i$ er(ormed +y CR'-$, CR'-S$ andCR'-C$ $earately,

CR'-S$ are a+le to (oc#$ on t"eir $eci(ic activity and en$#re #ality in gro# (ormation. $ t"e G6R i$ done +y an indeendent $ta(( AH or BH (rom anot"er +ranc" t"ere i$ nocon(lict o( intere$t

in term$ o( #ality o( gro# v$ +#$ine$$ target$

ro#nd )&-20% c#$tomer$ declared a di((erent income to t"e a$$e$$ment team t"an inCIS, indicating t"at

$el(-declaration o( income i$ not a !"olly relia+le indicator o( reayment caacity.


39/72

Loan #==raisal Process !om=liance b; JFS

8otal indebtednesso( t"e +orro!er doe$not e:ceed R$&0,000

9"e FI en$#re$o +orro!er doe$ not

"ave more than t>oDF!+$F-s loan$

o +orro!er cannot +e amember of morethan one of its

S


40/72

FS ad"ere$ to loan$ie limit$. FS doe$ not

di$+#r$e loan$e:ceeding R$.)0,000 in t"e (ir$t cycleand only grad#atedc#$tomer$ !it"e:cellentreayment over at lea$t3 cycle$ can avail

individ#al loan$ o( # toR$.&0,000

For inde+tedne$$

c"ec$, FS relie$ ondetailed c"ecing !it"

alicant$,

gro# mem+er$ and(amily, tele-c"ec$ and"y$ical vi$it$ , a$ !ella$com#l$ory CreditB#rea# c"ec to en$#ret"at total +orro!erinde+tedne$$ doe$ not

e:ceed R$. &0,000. >e-d#ing t"ro#g" $mart card$ en$#re$ only one loan to

eac" client and no m#ltile mem+er$"i acro$$ gro#$ com#l$ory credit +#rea# c"ec en$#re$ t"at FS doe$not +ecome t"e

t"ird lender to any individ#al.

In addition, FS $ta(( are trained to reali$tically ga#ge t"einde+tedne$$

level$ o( alicant$ !it" regard to in(ormal $o#rce$, +ytriang#lating !it"

neig"+o#r$ and ot"er gro# mem+er$.

ll $anctioning and di$+#r$ement o( loan$ i$ done only at acentral location

ACentral roce$$ing Centre and a team i$ re$on$i+le (ort"e$e (#nction$,!"ic" are r#n t"ro#g" an a#tomated $y$tem !it" maer-c"ecer (#nction$

at every level to revent deviation$ (rom t"e credit olicy.


41/72

Loan #==raisal Process?contin"ed FS "a$ al$o tried to imlement t"e g#ideline$ in $irit +y en$#ring t"at $ta(( contin#e

!it" an indeendent c"ec o( c#$tomer@$ inde+tedne$$ (rom in(ormal $o#rce$ a$ !ell,$o t"at t"e credit +#rea# c"ec doe$ not relace a$$e$$ment o( tr#e reaymentcaacity at c#$tomer level.

>#ring t"e (illing # o( t"e CIS (orm, t"e CR'-S trie$ to a$$e$$ t"e need and reaymentcaacity o( c#$tomer

5 detail$ are cat#red o( all ot"er loan$ , +ot" (ormal and in(ormal. In ca$e a c#$tomer"a$ 2 e:i$ting loan$,eit"er "er (orm !ill not +e (illed (#rt"er, or $"e !ill +e re#e$ted to reay andaroac" FS a(ter t"at.

9"e (orm al$o cat#re$ detail$ o( "o#$e"old income and e:endit#re $o a$ to (acilitatea roer reayment

analy$i$. Ho!ever, !it" +orro!er$ declaring income$ only #nder R$. )20,000, t"e#ality o( reaymentanaly$i$ mig"t not +e too reali$tic.

FS "a$ t"ere(ore done a $t#dy o( aro#nd 40 common occ#ation$ in t"e #r+an lo!-

income $egment, andt"e average ca$" (lo!$ (or eac" o( t"e$e occ#ation$ in term$ o( vol#me and (re#ency.

9"i$ act$ a$ a ro:yto ga#ge reayment caacity a$ mo$t c#$tomer "o#$e"old$ !o#ld "ave one o( t"e$eocc#ation$ a$ it$main $o#rce o( income. In(ormation cat#red in t"e CIS i$ later veri(ied +y t"e BH cond#cting t"e Gro#

6eri(ication A$ince "e i$ an


42/72

indeendent er$on "e "a$ no incentive to a$$ a ri$y gro#. F#rt"er veri(ication i$done t"ro#g" tele-c"ec$ A)&% $amle, "y$ical c"ec$ A&% $amle and credit $coring.

FS doe$ not e:tend more t"an t"e limit o( R$. &0,000 to it$ gro# +orro!er$. Hig"erloan $ie$ are only

e:tended #nder t"e )&% o( non riority Sector 8ending loan$. No ca$e$ !ere o+$erved !"ere loan$ "ad +een di$+#r$ed !it"o#t Credit +#rea#

c"ec or in t"e ca$e o( anerroneo#$ reort, !it"o#t an N7C (rom t"e corre$onding FI.

lmo$t )00% c#$tomer$ reorted t"eir o#t$tanding (rom ot"er FI$ at t"e time o(

alying (or t"e FS loancorrectly


43/72

Loan #==raisal Process !om=liance b; JFS

!redit "rea" (!)o FI i$ a mem+er

o( at lea$t one CBo $#+mit$ data

reg#larly to t"eCB

o c"ec$ !it" CB+e(ore

$anctioning o(loan

o In addition to CBc"ec$, tae$$el( certication(rom t"e+orro!er$

FS $#+mit$ data to +ot" t"e Credit B#rea#$ 5 Hig" ar and'#i(a: com#l$ory credit +#rea# c"ec i$ incororated in t"e CR

$o(t!are, $o t"atno loan can +e $anctioned !it"o#t "aving (ir$t +een aroved +yt"e CreditB#rea#.

In ca$e$ !"ere t"e CB reort i$ erroneo#$, roo( o( comletiono( t"e ot"erFI loan "a$ to +e +ro#g"t +y t"e c#$tomer Acancelled loancard, !it" No7+/ection letter o( ot"er FI. 9"i$ i$ $creened +y FS (ora#t"enticity +e(oret"e loan i$ $anctioned.

>eviation$ in t"e ca$e o( erroneo#$ CB reort$, are a$$ed +y a

$enior er$on int"e $anctioning team and are logged (or (#rt"er c"ec$ +y$#ervi$or$; a#ditteam.

'FS +orro!er$ are com#l$orily $creened t"ro#g" CIBI8 a$ t"eir loan $ie$ are m#c""ig"er AR$ )-)0 la"$.

9"ere i$ al$o a very detailed veri(ication !"ic" i$ done on-$ite a$ !ell a$ an indeendent


44/72

t"ird artyveri(ication er(ormed (or $#c" loan$. Reayment caacity i$ e$ta+li$"ed in detail, !it"doc#mentary roo(o( romoter@$ er$onal and +#$ine$$ income t"ro#g" ta: ret#rn$, etc.

For FS@$ "o#$ing loan rod#ct$ t"ere are $tringent c"ec$ on income level$ and(re#ency, a$ !ell a$

detailed reayment caacity calc#lation$, en$#ring t"at not more t"an 40-4&% o( a"o#$e"old@$ di$o$a+leincome !o#ld +e #$ed in mont"ly loan reayment$


45/72


Loan Prod"ct feat"res !om=liance b; JFS

Loan siIe: doe$ not e:ceed R$ 3&,000 in FS doe$ not di$+#r$e loan$ o( more t"anR$)&,000 A)$t cycle R$)0,000

)$t cycle and R$ &0,000 in $#+$e#ent and $#+$e#ent cycle$ R$)&,000 a$ it "a$ not8en"re: not le$$ t"an 24 mont"$ !"en FS i$ (#lly comliant a$ it o((er$ loan$ only #

to R$. )&,000 at re$ent loan amo#nt OR$ )&,000

,e=a;ment freA"enc;: !eely; C#$tomer$ are not o((ered a c"oice o( loanreayment (re#ency 5a$ FS

(ortnig"tly; mont"ly at t"e c"oice o( "a$ only t"e mont"ly reayment otion and it$

e:i$ting $o(t!aret"e +orro!er re$trict$ it (rom o((ering ot"er otion$.

$oratori"m: i$ not le$$ t"an t"e 9"ere i$ a minim#m eriod o( moratori#m+et!een t"e grant o( t"e (re#ency o( reayment Aor min. one loan and t"e d#e date o(t"e reayment o( t"e (ir$t in$talment (or loan$ in$tallment

2& Janalakshmi Financial Services Pvt. Ltd


46/72


Loan Pricing !om=liance b; JFS

-nterest rate=ricing ca=: FS "a$ not comlied !it" t"e )0%margin ca a$ $tated in t"e revi$edo argin ca o( )0% (or large FI$ RBI G#ideline$ a$ on #g#$t 3rd 20)2, a$ it "a$made a rere$entation to

A!it" ort(olio O R$ )00 crore, )2% t"e RBI to recon$ider t"i$ along !it" all ot"ermem+er$ o( FIN.(or ot"er$ Ho!ever, it contin#e$ to c"arge 2% .a.

Pricing: only 3 comonent$< Ai FS $toed collection o( $ec#rity deo$it$

and $mart card c"arge$ a$ roce$$ing (ee Aii intere$t Aiii $oon a$ t"eg#ideline$ !ere i$$#ed.

Processing fee: ma: )% o( loan amt. C"arge$ )% o( loan amo#nt Ae:cl#$ive o(-ns"rance commission: a$ er IR> In eeing !it" it$ in$#rance tie #$, FS o((er$a coverage over and

norm$ a+ove t"e loan amo#nt, covering +ot" t"eOther: FS doe$ not c"arge enalty on

reayment 1 delayed ayment (oro No enalty (or reayment 1 gro# loan$. Gro# loan$ are e:tended !it"o#t

collateral o( any ind. delayed ayment$ FS tae$ collateral only



47/72


8rans=arenc; !om=liance b; JFS

Standard form of

9"e loan agreement i$ $tandardied and i$$#ed a$ a L$anctionletterM along !it" t"eloan agreement: loan card; reayment $c"ed#le t"ro#g" t"e CR $o(t!are $oa$ to en$#re no c"ange$re(era+ly in can +e made +y any individ#al. Ho!ever, a$ it i$ ro#ted t"ro#g"t"e $o(t!are it can onlyvernac#lar lang#age +e i$$#ed in 'ngli$". 9o comen$ate (or t"i$, FS give$ c#$tomer$a rinted $"eet in t"e

State lang#age !it" all t"e detail$ incl#ded in t"e loan doc#ment.Loan card: re(lecting 9"e loan card re(lect$ Ai t"e e((ective rate o( intere$t Aii allot"er term$ and condition$ o( Ai 'IR Aii term$ 1 attac"ed to t"e loan Aiiiidentication AQKC detail$ Aiv acno!ledgement$ +y FS o( all condition$ Aiii recordreayment$ incl#ding in$talment$ received and t"e (inal di$c"arge.all tran$action$JAiv all 'ntrie$ in t"e loan card con$tit#te only t"e $ignat#re o( t"e@is=la; of the 1-, in FS di$lay$ it$ R and 'IR on 4 $ie aer on t"e notice

+oard and on t"e !all$ o( it$ it$ oce$ 1 !e+$ite +ranc"e$. E"ile t"i$ meet$ reg#latory re#irement$, +etter vi$i+ility i$

recommended to rein(orce t"e CoC among $ta(( and c#$tomer$$ember ed"cation: In(ormation i$ imarted to mem+er$ d#ring re-loan training A2day$ (or ne! mem+er$ ro(e$$ional in#t$ to and ) day (or reeat loan$, again a$ aninteractive di$c#$$ion d#ring t"e GR9 roce$$ mem+er$ in t"e and (inally at t"ere-di$+#r$ement con(irmation meeting at t"e +ranc".

2? Janalakshmi Financial Services Pvt. Ltd


48/72

!om=liance >ith g"idelinesertainin to clients

2 analakshmi Financial

9"e Fair ractice$ Code in 'ngli$" and in t"e State lang#age i$ di$layed +y FS in

it$ H.7 and +ranc"e$ Borro!er$ are trained at $everal $tage$ (rom CG9 till di$+#r$ement, to rein(orcet"eir rig"t$ and

re$on$i+ilitie$ !it" re$ect to FS and it$ $ta(( ll $#c" training$ are com#l$ory and are rovided +y t"e eld $ta((, !"o are$ecically trained in

"o! to comm#nicate in a $imle and e((ective manner !it" t"e c#$tomer$.

In addition, FS $creen$ & $"ort lm$ a+o#t vario#$ a$ect$ o( nancial literacy, to"el it$ c#$tomer$

ic # in#t$ on +#dgeting, nancial lanning, $aving and +orro!ing !it"in t"eirmean$.

FS trie$ to +e a$ tran$arent a$ o$$i+le !it"in t"e con$traint$ o( it$ tec"nology$y$tem !"ic" doe$

not allo! it to rint $anction letter$ and ot"er c#$tomer doc#mentation in a

lang#age ot"er t"an'ngli$". 9o overcome t"i$ di(c#lty, FS rint$ all c#$tomer doc#mentation in t"eState lang#age and"and$ t"i$ over to c#$tomer$ along !it" 'ngli$" doc#ment$.

For t"o$e c#$tomer$ !"o cannot read t"e State lang#age or are #na+le to read atall, t"e content$ o(

all doc#mentation are read alo#d and tran$lated d#ring di$+#r$ement.


49/72

!om=liance >ith g"idelinesertainin to clients


ll c"arge$ are comm#nicated to t"e c#$tomer ver+ally in term$ o( a mont"ly rate,

and in !ritten (orma$ an nn#alied ercentage Rate and '((ective Intere$t Rate. Receit$ are rovided (or all tran$action$ t"ro#g" t"e oint-7(-9ran$actionA79terminal$ #$ed +y t"e

CR'-C$ and SS $ta(( A(or $aving$. Ho!ever, $ince t"e$e receit$ (ade !it" time,t"ere i$ al$odoc#mentary roo( on t"e loan card ACR'-C $ignat#re and icro-en$ion$ a$$

+oo. For SB acco#nt$, a reg#lar $tatement i$ not rovided +y :i$ Ban +#t a mini-$tatement o( t"e a$t )0

tran$action$ can +e acce$$ed (ree t"ro#g" :i$ Ban 9$.


50/72


51/72


!om=liance >ith g"idelinesertainin to clientsonly a$ a la$t re$ort in t"e event o( reeated (ail#re to recover t"e d#e$.

Comm#nication o( en$ion term$ and condition$ "a$ +een a c"allenge, a$ recall o( t"e(ormer i$ re$tricted

to t"e $"ort term & year loc-in eriod and not to t"e long term +ene(it$.

Similarly (or $aving$ +an acco#nt$, c#$tomer$ are not entirely $#re a+o#t !it"dra!allimit$ and c"arge$ (or

e:ceeding t"e allo!a+le tran$action limit$, a$ t"ere "ave +een c"ange$ in :i$ Ban@$rod#ct term$

FS@$ c#$tomer$ are not all conver$ant !it" t"e State lang#age. Eit" $ome e((ort (rom

er$on$ cond#ctingt"e GR6, t"e mot"er-tong#e o( t"e c#$tomer co#ld +e e$ta+li$"ed $o t"at t"e vernac#lar$"eet "anded over

at di$+#r$ement i$ in a lang#age $"e #nder$tand$.


52/72



,es=onsible Lending !om=liance b; JFS

Location (or tran$action$ andoverd#e recoveryo all tran$action$ at a centrallocationo $ta(( are allo!ed to maerecovery at t"e

lace o( re$idence or !or i(+orro!er (ail$

to aear at central lace on 2 ormore$#cce$$ive occa$ion$

Recoverie$ are made at t"e L+atc" meetingMlocation, $o

t"at all gro# mem+er$ !itne$$ eac" ot"er$@reayment$.

In ca$e o( de(a#lt, t"e CR'-C leave$ t"e meetingon time, +#t call$ t"e rea Head to (ollo! #!it" t"e +atc" leader and t"e concerned

mem+er$, t"o#g" all di$c#$$ion$ tae laceat t"e meeting location and not at t"e mem+er@$"o#$e.

FS "ad clear and $trict g#ideline$ (or emloyee interaction$ !it" c#$tomer$, even +e(oret"e Code o(

Cond#ct and reg#latory g#ideline$ came into e:i$tence.

FS "ad already e$ta+li$"ed t"e ractice$ o( addre$$ing +orro!er$ a$ LadamM andtreating t"em !it"

#tmo$t co#rte$y. 9"i$ "a$ +een (#rt"er em"a$i$ed $ince t"e CoC and g#ideline$ !erei$$#ed.

In t"e event o( de(a#lt $ta(( do not $tay on at t"e centre +#t call t"e rea Head orBranc" Head to tacle t"e $it#ation $o t"at t"ere i$ a $enior er$on interacting !it"c#$tomer$ and t"e CR'-C doe$ not get +#rdened !it" recovering late ayment$. Sincet"e H$ and BH$ "ave $everal year$ o( e:erience, t"ey are a+le to "andle t"e


53/72



$it#ation dilomatically in mo$t ca$e$.

Collection $"ort(all$ are not made good (rom emloyee$.

i$+e"avio#r o( any $ta(( can ea$ily +e traced a$ t"e grievance mec"ani$m i$em"a$i$ed d#ring re-loan and di$+#r$ement training. F#rt"ermore, t"e internal a#ditc"ecli$t cover$ (eed+ac on $ta(( +e"avio#r d#ring interaction$ !it" c#$tomer$.

Sta(( are re$tricted (rom contacting c#$tomer$ individ#ally or demanding reayment$ atinaroriate "o#r$.


54/72


55/72

/rievance $echanism

FS "a$ a toll (ree n#m+er (or grievance redre$$al, !"ic" i$ an$!ered +y a dedicated$ta((. Grievance$ are recorded, ta+#lated and reorted once a mont" to t"erod#ct$ Head.

C#$tomer$ are in(ormed a+o#t t"e grievance redre$$al mec"ani$m d#ring +ot" re-loan training a$ !ell a$ re-di$+#r$ement interaction. 9"e toll (ree n#m+er i$ rintedin large rint on t"e la$tic cover o( t"e loan card, a$ !ell a$ on t"e card it$el( andt"e vernac#lar $"eet.

C#$tomer$ are enco#raged to call t"e n#m+er to $ee any in(ormation or re$olve #erie$a$ !ell.

Searate n#m+er$ are given (or $eeing in(ormation on icro-en$ion$ AIIS micro

en$ion "elline andInd#$try $$ociation ASa->"an and FIN n#m+er$ are al$o rovided.

comlaint and $#gge$tion +o: i$ in$talled at all +ranc"e$ !it" t"e Regional Head@$name and "one n#m+er a$ted on t"e to. Regional Head$ c"ec t"e +o:e$ andcomile (eed+ac received (rom t"i$ c"annel every #arter. 9"e (eed+ac (rom t"i$c"annel i$ #ite lo!, +#t t"e toll (ree n#m+er i$ e:ected to +e an ea$ier c"annel (orc#$tomer$.

6ol#me o( grievance$ received t"ro#g" t"e toll (ree n#m+er i$ #ite lo! A2&-30 ermont", indicating t"at c#$tomer$ may need $ome more time to a$$imilate t"e

concet o( a "elline. 7( t"e$e, *0% are in#irie$ a+o#t vario#$ rod#ct$.

large n#m+er o( ca$e$ go #nreorted a$ c#$tomer$ come to t"e +ranc" or call t"e Hor BH directly to re$olve t"eir #erie$ or to mae a comlaint. 9"e an$!er or $ol#tion i$al$o given ver+ally and t"e ca$e i$ not recorded a$ +ranc" $ta(( erceive t"at $ince it i$addre$$ed, t"ere i$ no need to doc#ment it.

lmo$t all c#$tomer$ co#ld oint to t"e grievance redre$$al toll (ree n#m+er on t"eirdoc#mentation t"o#g"

"ardly any "ad ever #$ed it even to mae in#irie$

9"ere i$ a$ yet no :ed 9#rnaro#nd time (or grievance redre$$al, +#t once vol#me$ic # FS !ill need to de$ign an e$calation matri: !it" time (rame$ (or re$ol#tion.


56/72

9"ere i$ al$o a ercetion t"at t"e more grievance$ recorded, it !o#ld re(lect +adly ont"e +ranc"@$

er(ormance. 9"i$ negative ercetion !ill "ave to +e c"anged t"ro#g" in#t$ (rom

$enior management.


57/72


58/72

clients

FS@$ internal a#dit $coe cover$ client rotection i$$#e$ ade#ately. 9"e$e are

inve$tigated in t"e (ield a$art o( t"e c"ecli$t (or c#$tomer interaction$.

ny c"ange$ to CoC i$ comm#nicated to all FS $ta(( t"ro#g" t"e relea$e o( an internalcirc#lar +y #dit

deartment and all $ta(( can +e a#dited t"erea(ter (or ad"erence o( t"e $ame S#ervi$ory vi$it$ to center$ +y t"e rea Head and Branc" Head ade#ately coverad"erence to vario#$

a$ect$ o( t"e g#ideline$ and CoC, e$ecially Re$ect(#l 9reatment o( client$ and

Grievance Redre$$al. voidance o( 7ver-Inde+tedne$$, 9ran$arency and rivacy o( client data areade#ately +#ilt into t"e

oerational roce$$e$ to en$#re t"at t"ere i$ no $coe (or (lo#ting t"e$e rincile$


59/72

!lient ed"cation efforts B

Parameter #==roval@oc"ment

@issemin

Observanceation ationClient'd#cation

Good oderat Good Good

GoodClient N N

)20

%

)00

%

*0%

0

%

40

%

Performance

)00%)00%

'0.0&75.9&

Score

'.0& o"t of0.0&

Levels of internaliIation

20%

0%Client 'd#cation A'((ort$ Client

!arene$$and ot"erRe$#lt$


60/72

!lient ed"cation efforts Ba:im#m c"ievement


61/72

?!lient ed"cation efforts B!lient 1d"cation FS "a$ de$igned it$ $y$tem$ $o a$ to rovide c#$tomer$ !it" (#ll and (air in(ormation

and eno#g"rein(orcement o( rod#ct c"arge$ and term$ and condition$ over reeated interaction$,(or c#$tomer$ tomae an in(ormed and #n"#rried deci$ion.

reliminary in(ormation a+o#t t"e comany and it$ range o( loan rod#ct$ and +roadterm$ and condition$

are given +y t"e CR'- at t"e time o( liai$on and relation$"i +#ilding in t"e area. 2 day training d#ring gro# (ormation $erve$ a$ t"e +a$i$ (or otential c#$tomer$ to

decide !"et"er t"ey!ant to +ecome gro# mem+er$ or not.

9"e G6R roce$$ en$#re$ t"at alicant$ "ave #nder$tood all rod#ct term$ and

condition$ and c"arge$, a$!ell a$ gro# re$on$i+ility and gro#-related roce$$e$ ade#ately.

re-loan di$+#r$ement $e$$ion cond#cted +y t"e rea Head, en$#re$ t"at c#$tomer$ are

a+le to clear any

do#+t$ and t"at any mi$in(ormation (rom t"e CR'-S i$ ade#ately addre$$ed +e(oreact#al di$+#r$ement.

) day gro# training i$ cond#cted +e(ore every $#+$e#ent loan cycle to rein(orcerod#ct (eat#re$

9"e i$$#e o( mi$-$elling "a$ +een addre$$ed. CR'-S$ are not allo!ed to give detail$ o(en$ion and $aving$

+an rod#ct$ to c#$tomer$ +e(ore di$+#r$ement$ $o t"at c#$tomer$ don@t (eelcomelled to tae t"e$e


62/72

?!lient ed"cation efforts Brod#ct$ to get t"eir di$+#r$ement.

C#$tomer ed#cation "a$ +een taen a $te (#rt"er a$ FS "a$ de$igned and rod#ced &

$"ort lm$ covering

(inancial literacy toic$. 9"e$e (ilm$ are $creened at t"e +ranc" (or eac" gro# rior tot"eir di$+#r$ement.

F#rt"er in#t$ are given to c#$tomer$ d#ring $#ervi$ory vi$it$ A+y rea Head and

Branc" Head

No rod#ct$ are +#ndled, e:cet com#l$ory credit-li(e in$#rance, !"o$e term$ andcondition$, coverage

and ot"er rod#ct detail$ are al$o rinted a$ art o( loan doc#mentation A$anction

letter. !arene$$ level$ are reg#larly c"eced +y t"e internal a#dit deartment d#ring

c#$tomer interaction$

C#$tomer$ "ave not +een in(ormed a+o#t t"eir rig"t$ and re$on$i+ilitie$ !it" re$ect tot"e CoC er $e.


63/72

?!lient ed"cation efforts B

!lient a>areness and other res"lts

!arene$$ and recall o( training received on vario#$ toic$ !a$ "ig", at almo$t )00%(or all toic$. C#$tomer$ !ere artic#larly romt in recalling detail$ $#c" a$ Comany name, "eado(ce and +ranc"

location, loan amo#nt, reayment (re#ency and term, and roce$$ing (ee$

!arene$$ o( intere$t rate !a$ +etter !"en #oted a$ a mont"ly rate or amo#nt rat"ert"an R or 'IR No c#$tomer$ reorted olicy violation$ regarding collection o( ot"er c"arge$, collateral,margin money etc.

9"ey al$o reorted t"at t"ere !a$ no di$crimination or any ind o( #n(air treatment or#nde$ira+le

+e"avio#r (rom t"e (ield $ta(( or +ranc" $ta(( o$t c#$tomer$ indicated t"at t"ey !ere $ati$ed !it" FS $ervice$ - ?).% indicated"ig" $ati$(action and

0.&% raned FS eit"er )$t or 2nd mo$t re(erred lender among all $o#rce$ o( loan$.

!arene$$ o( en$ion and $aving$ rod#ct$ term$ and condition$ i$ lo!er t"ana!arene$$ on loan

rod#ct$, ro+a+ly +eca#$e t"e$e are more comle: rod#ct$ and are al$o ne!er.

o$t c#$tomer$ are #na!are o( t"e long term +ene(it$ o( en$ion and are onlycon$idering t"e loc-in

eriod o( & year$ a(ter !"ic" t"ey can !it"dra! !it"o#t lo$$. Ho!ever, t"e real +ene(ita(ter &? year$ o(


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?!lient ed"cation efforts Bage i$ not yet #nder$tood +y mo$t c#$tomer$

any o( t"e c#$tomer$ are deo$iting $oon a(ter t"e gro# meeting$, o(ten in vie! o(ot"er mem+er$. 7nly

4.3% intervie!ed c#$tomer$ !ere maing individ#al deo$it$ o#t$ide t"e gro#meeting$. 9"i$ may +e o(concern !it" regard to client data rivacy.

"ig" roortion o( c#$tomer$ are #na!are o( "o! to tran$act at an 9 and rely on(amily mem+er$ to

"el t"em or act#ally tran$act on t"eir +e"al(. E"ile t"i$ i$ acceta+le in mo$t$it#ation$, it !o#ld +e more

de$ira+le (or c#$tomer$ to +e ta#g"t "o! to tran$act, +#t SS; FS "ave deli+erately eta!ay (rom t"i$ a$management (eel$ t"at $ta(( $"o#ld not +e involved in any tran$action$ involving ca$"!it"dra!al$, even i(t"eir aim i$ to rovide demon$tration or g#idance.


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nne:e$

ProCle of the oard


66/72

S.Do. oard $ember Position on 1%=erienceSince

) . $ath"r-nde=endent

@irector

Former C"airman o( 8i(e In$#rance Cororation o( India C"airman o( National Stoc ':c"ange C#rrently on t"e Board$ o( I81FS, I9C, H>I8, Gra$im and IRC9C

20)0

2 Gda; !hitale-nde=endent

@irector

Senior artner in t"e very re$ected a#dit (irm ;$ .. C"itale and Co Fo#nder >irector, Indian Co#ncil (or >i$#te Re$ol#tion C#rrently on t"e Board$ o( ICICI Ban, indal So#t" Ee$t, GR Ind#$trie$ 'arlier on t"e Board$ o( SI>BI and State Ban o( India ASBI Ha$ $erved on e:ert committee$ $et # +y ICI, S'BI, RBI, IR>, and IB

200

3 ,ama ia="rkar -nde=endent 9"o#g"t leader, a#t"ority on maret $trategy and con$#mer i$$#e$ in

India 20)0@irector

Con$#ltant to $everal +l#e-c"i glo+al comanie$4 aheer Sitabkhan -nvestor C'7, 9ree 8ine Inve$tment anagement

20)0

& 8. S. Siva Shankar -nvestor >irector, rivate '#ity, in Citigro# 6ent#re Caital International20))

@irector Ea$ earlier art o( t"e Secial Sit#ation$ gro# !it" inve$tment$ acro$$ rivate

e#ity ; #+lic. Dara;an -nvestor Former Co#ntry Head o( organ Stanley India, O20 year$ o(

inve$tment +aning e:erience 20)0

,amachandran rec or Former Head and 8ead ort(olio anager o( organ Stanle $?. S.*is>anatha -nvestor Co-(o#nder and anaging >irector o( t"e Bell!et"er icronance F#nd

200*

*. *ikram /andhi -nvestor

20)2. ,amesh Fo#nder

200

)0. *.S. ,adhakrishnan > 1 C'7

20))

)). Srinivasan 6ice

200

3* Janalakshmi Financial Services Pvt. Ltd


67/72

Shareholding Pattern

Shareholder !lass

) anala$"mi Social Service$ Cla$$

2 9reeline $ia a$ter F#nd ASingaore te. 8td. Cla$$

3 Bell!et"er icronance F#nd rivate 8imited Cla$$

4 ic"ael and S#$an >ell Fo#ndation Cla$$

& 8o Caital 88C Cla$$

Narayan Ramac"andran Cla$$

? Badri ilin/a Cla$$

* C6CIG II Client Ro$e"ill 8imited Cla$$ B1C

C6CIG II 'mloyee Ro$e"ill 8imited Cla$$ B1C)0 ll ot"er$ Cla$$ B1C



68/72

$ethodol


Preliminar; anal;sis of $F-Ms information revie> of availablere=orts and Cnancial

statements

*isit to i$c#$$ion$ !it" t"e 6ice C"airman, C'7, Head o( Strategy 1 lanning, and Head o(rod#ct$ deartment 5

+road $trategic i$$#e$ and mi$$ion orientation, commitment to!ard$ CoC

>i$c#$$ion$ !it" t"e $enior management A7eration$, H#man Re$o#rce$, 9raining,Internal #dit to #nder$tand FI@$ o+/ective$, maret $trategie$, met"odology,

rod#ct$ and $ervice$, integration o( CoC in olicie$ and roced#re$ Revie! o( man#al$, vario#$ reort (ormat$, vario#$ doc#ment$ and Board min#te$

*isit to branches H branches across angalore !hennai Jai="r B@elhi >i$c#$$ion !it" Branc" Head and all +ranc" $ta(( on di((erent a$ect$ o( CoC, FI@$olicie$ and roced#re$

>oc#mentation revie! 5 client +a$ic ro(ile (orm$, loan alication (orm$,

internal a#dit reort$, comlaint$ regi$ter i( any and CoC di$lay$

*isit to centre meetings H 2+9 gro"= meetings =er branch total 99batches >ith 26 clients $$e$$ relation$"i +et!een FI $ta(( and client$

C"ec (or imlementation o( t"e =ni(ied Code o( Cond#ct, Fair ractice$ Code and RBIg#ideline$ in ractice

Sot c"ec o( a$$+oo$, receit$, reayment card$, maintenance o( doc#ment$

Feed+ac on rod#ct$ 5 $#ita+ility to client need$, alication o( term$ 1 condition$


69/72

$ethodol


@ata #nal;sis and ,e=ort >riting

-nternal ,evie> at $+!,-L

,e=ort draft sent to S-@-

li


70/72

Sam=ling


Loan

ranch ,egion L L L6 !"stomers 8otal) QBS Qarnataa )&2 HSR Qarnataa ? ?3 QR #ram Qarnataa ? )0 )?4 CB> Qarnataa )4 ? 2)& B G Road Qarnataa )0 &0

alat"alli Qarnataa ? )&? land#r 9amil Nad# 32* or#r 9amil Nad# 20 =ttamnagar >el"i )* )*)0 angol#ri >el"i 2)) ai#r ai#r 30

/rand total 95 96 7 26

l i h


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#ssessment tool: >eight scores an

SectionsDo. of $a%

-ndicators Score-ntegrit; /overnance and


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#bbreviati

>> roval >oc#mentation >i$$emination HR H#man Re$o#rce$H rea Head ICI In$tit#te o( C"artered cco#ntant$

nd"ra rade$" IIS Inve$t India icro en$ion Service$R nn#alied ercentage Rate C8 anaad"ar Con$tr#ction vt 8td9 #tomated 9eller ac"ine FS8 anala$"mi Financial Service$ vtBC Baning Corre$ondent SS anala$"mi Social Service$BH Branc" Head QKC Qno! Ko#r C#$tomerCBS Core Baning Sol#tion - icro-Credit Rating$ InternationalC'7 C"ie( ':ec#tive 7((icer > anaging >irectorCIBI8 Credit In(ormation B#rea# AIndia 8imited FI icro Finance In$tit#tionCIS C#$tomer In(ormation S"eet FIN icro(inance In$tit#tion$ Net!orCoC Code o( Cond#ct IP icro(inance In(ormationCC Central roce$$ing Centre NBF Non Baning Finance ComanyCR'- C#$tomer Relation$"i ':ec#tive - NHB National Ho#$ing BanCR'- C#$tomer Relation$"i ':ec#tive - 7SS 7erational Sel( S#((iciencyCR'- C#$tomer Relation$"i ':ec#tive - Sale$ R ort(olio at Ri$CR C#$tomer Relation$"i anagement >C o$t >ated C"e#e

CSR Credit Score Reort IN er$onal Identication N#m+er'FS 'nterri$e Financial Service$ 79 oint o( 9ran$action'IR '((ective Intere$t Rate S8 riority Sector 8ending'I '#ated ont"ly In$tallment RBI Re$erve Ban o( IndiaFC Fair ractice$ Code SI>BI Small Ind#$trie$ >evelomentG6R Gro# 6eri(ication Reort =9I =nit 9r#$t o( India

janalakshmi financial services pvt ltd coca report

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