promotion materials-2019testkart.in/download.php?file=promotion_materials_2019_sbild_trichy.pdfifsc...

PROMOTION MATERIALS-2019

-SBILD TRICHI INITIATIVE

1

List of Select Abbreviations ADR - American Depository Receipt ARCIL - Asset Reconstruction Company of India Ltd. BATNA – Best Alternative to a Negotiated Agreement BCBS - Basel Committee on Banking Supervision BCSBI – Banking Codes & Standard Board of India BERI – Bank Exposure Risk Index BIFR - Board for Industrial and Financial Reconstruction BSR - Basic Statistical Returns CAMELS – Capital Adequacy, Assets, Management Capability, Earnings, Liquidity & Sensitivity. CBDT - Central Board of Direct Taxes CDR - Corporate Debt Restructuring CERSAI – Central Registry of Securitisation Asset Reconstruction and Security Interest CENVAT - Central Value Added Tax CEEP – Customer Excellence Experience Programme CFT – Combating of Financing of Terrorism CGTMSE – Credit Guarantee Fund Trust for Micro & Small Enterprises CIBIL - Credit Information Bureau of India Limited CORE - Centralized Online Real-time Exchange CRAR - Capital to Risk Weighted Assets Ratio CRISIL –Credit Rating Information Services of India Ltd. DFHI - Discount and Finance House of India DGFT – Director General of Foreign Trade DICGC - Deposit Insurance and Credit Guarantee Corporation DWCRA - Development of Women and Children in Rural Areas EEFC - Exchange Earners' Foreign Currency Account ESOP - Employees Stock Option Plan FEDAI - Foreign Exchange Dealers’ Association of India FEMA - Foreign Exchange Management Act GATT - General Agreement on Tariffs and Trade GST - Goods and Services Tax ICCOMS - Integrated Computerised Currency Operation and Management System IDRBT - Institute for Development and Research in Banking Technology IMPS – Immediate Payment Service ISDN – Integrated Services Digital Network IFSC – Indian Financial System Code IRDA - Insurance Regulatory and Development Authority KVIC - Khadi and Village Industries Commission LIBOR - London Inter-Bank Offered Rate MCLR – Marginal Cost of funds based Lending Rate MICR - Magnetic Ink Character Recognition MSME – Micro, Small & Medium Enteprises NABARD - National Bank for Agriculture and Rural Development NACH - National Automated Clearing House

2

NBFC - Non-Banking Financial Company NDTL - Net Demand and Time Liabilities NEFT - National Electronic Funds Transfer NOAPS - National Old Age Pension Scheme NOFHC – Non Operating Financial Holding Company NSE - National Stock Exchange NSE-MIBOR - National Stock Exchange-Mumbai Inter-Bank Offered Rate NSDL - National Securities Depository Ltd. OBU - Offshore Banking Unit OCAS – Online Customer Acquisition Solution OLTAS - Online Tax Accounting Systems OPEC - Organisation of Petroleum Exporting Countries OSMOS - Off-site Monitoring and Surveillance OTCEI - Over-the-Counter Exchange of India PIO - Person of Indian Origin PKI - Public Key Infrastructure PMGSY - Pradhan Mantri Gram Sadak Yojana PMGY - Pradhan Mantri Gramodaya Yojana PMO - Primary Market Operations PMRY - Prime Minister's Rozgar Yojana PMS - Portfolio Management Services RBS - Risk-Based Supervision RDBMS - Relational Data Base Management System REER - Real Effective Exchange Rate Repo - Ready Forward/Repurchase Agreement RIB - Resurgent India Bond RIDF - Rural Infrastructure Development Fund RTGS - Real Time Gross Settlement SAARC - South Asian Association for Regional Cooperation SARFAESI Act - Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 SEBI - Securities and Exchange Board of India SFMS - Structured Financial Messaging Solution SGSY - Swarnajayanti Gram Swarozgar Yojana SIDBI - Small Industrial Development Bank of India SIDC - Small Industries Development Corporation SJSRY - Swarna Jayanthi Shahari Rozgar Yojana SLR - Statutory Liquidity Ratio SWIFT - Society for Worldwide Inter-bank Financial Telecommunications TIN - Tax Information Network TRAI – Telecom Regulatory Authority of India TUFS - Technology Upgradation Fund Scheme UNCTAD - United Nations Conference for Trade and Development VIRUS – Vital Information Resource Under Seige VPIS – Valuable Paper Inventory System WCDL - Working Capital Demand Loan YTM - Yield-to-Maturity ZOPA – Zone of Possible Agreement

MCQs – Forex & Non‐fund Business

1. Expand UCPDC? a Uniform Customs & practices For Documentary credit. b Universal Customs & practices For Documentary credit. c Uniform Customs & principals For Documentary credit. d Uniform Conditions & practices For Documentary credit. 2. In documentary credit transactions (a) all parties deal with documents and not goods (b) all parties deal in documents and goods as well (c) buyer and seller deal in goods and banks in documents (d) all parties deal in goods only 3. What is CIF in terms of International Banking? a Certified Insurance Financier b Cost Insurance & Freight c Certificate of Insurance & Forward Contract. d None of the above. 4. The applicant for an LC is? a Exporter/Seller b Merchant Exporter c Importer/Seller d Importer/Buyer 5. The Bank which opens LC is called as? a Advising Bank b Confirming Bank c Reimbursing Bank d Issuing Bank. 6. The responsibility of a Confirming banker is? a Just advising the beneficiary b Can authorize changes in the terms of LC. c At par with the issuing Bank d None of the above. 7. Which one of the following is not a LC? a Red Clause LC b Green Clause LC c Blue clause LC d None of the above. 8. What is an Irrevocable LC? a The applicant can change the terms of LC on his own b Any terms & Conditions can be altered with the consent of the Parties/Bankers. c Advance can be extended to the exporter under this LC. d None of the above. 9. What is a Transferable LC? a The Beneficiary can be replaced. b Part of the LC may be transferred to the supplier of the exporter. c The beneficiary can request his banker to open a LC on the strength of the LC, for which he is beneficiary. d None of the above. 10. What is a contract of Guarantee? a Guaranteeing the instalment payments of our borrower. b It is a Solvency Certificate. c Obtaining CGTMSE coverage. D A contract to perform the promise or discharge the liability of a third person in case of default

11. The two types of Guarantees are : a Performance/Production b Financial/Production c Performance/Banker d Financial / Performance. 12. At the Branches BGs can be issued for a maximum period of _____ months? a 12 b 18 c 24 d 36 13. No Bank Guarantee should normally have a maturity of more than ______ years. a 03 b 05 c 08 d 10 14. The claim period under BG is_____ months? a 06 b 03 c 01 d NIL 15.Importer –Exporter code number is allotted by a) RBI b) DGFT c) EXIM BANK d) ECGC 16.FEMA 1999 came into force with effect from (a) 01 Jan 1999 (b) 01 June 1999 (c) 01 June 2000 (d) 01 June 2001 17.Import / Export Trade in India is regulated by (a) RBI (b) EXIM Bank (c) DGFT (d) ECGC 18. E.E.F.C account is (a) Exchange Earners Foreign Currency Account (b) Exchange Entitlement for Civil servants (c) Export Earnings and Foreign Currency Account (d) Exchange Earners’ Foreign Currency 19. Who is the Chief of US Federal Reserve? a) Ben Bernanke b) Ms. Janet Yellen c) Satya Nadella d) Jerome Powell 20. Definition of NRI is given in _____ a) Section 2, FEMA b) Section 2, FCRA c) NRI Act d) FEMA (Deposit) Rules 21. EXIM Bank has established in the year of …………… a) 1980 b) 1982 c) 1988 d) 1991 22) Uniform Customs and Practice for Documentary Credits (UCPDC), Revision 2007 is published by __________________. a) International Chamber of Commerce b) World Bank c) World Chamber of Commerce d) International Monetary Fund 23) The number of articles in current version of UCPDC is ________. a) 39 b) 29 c) 38 d) 48 24) The designated currencies for opening FCNR(B) are a) USD, Euro, Pound Sterling, Japanese Yen, Canadian Dollar & Australian dollar b) USD, Euro, Pound Sterling, Japanese Yen, Canadian Dollar & Singapore dollar c) USD, Euro, Pound Sterling, Japanese Yen, Singapore Dollar & German Duetchmark d) USD, Euro, Pound Sterling, Japanese Yen, Canadian Dollar & German Deutchmark

25) “SBI Express Remit” is a product for a) US & UK NRIs b) US NRIs alone c) UK NRIs alone d) None 26) B.R.I.C.S. stands for a) Brazil, Russia, Indonesia, Chile & South America b) Britain, Russia, India, Chile & South Africa c) Britain, Russia, Indonesia, China & South Africa d) Brazil, Russia, India, China & South Africa. 27) Certificate of Origin is necessarily called for in import transactions (a) to arrive at the country’s trade figures (b) to determine method of payment (c) for Customs to determine the duty payable (d) None of the above 28. A swap transaction involves (a) purchase of currency (b) sale of currency (c) purchase of currency against sale or forward sale of the currency. (d) simultaneous purchase and sale of one currency against another for different settlement dates. 29. The maxim applied in respect of Direct Quotation is (a) buy low, sell low (b) buy low, sell high (c) buy high, sell low (d) buy high, sell high 30. A quotation in which the home currency unit is the standard unit and the rate is expressed in variable units of foreign currency is called (a) direct rate (b) spot rate (c) indirect rate (d) forward rate 31. The account maintained by an our Foreign Branches / Correspondents with our domestic branch (in India) is known as (a) Loro a/c (b) Vostro a/c (c) Special a/c (d) Nostro a/c 32. When conversion/exchange of currencies takes place at some future date (beyond 2 working days) at a rate of exchange agreed upon now, such a transaction is known as (a) spot transaction (b) cover transaction (c) cash transaction (d) forward transaction 33. The rate quoted for issue of Drafts/TTs is (a) Bill Selling rate (b) Inter-Office rate (c) Forward rate (d) TT Selling rate 34. The rate applicable for an export bill tendered for negotiation is (a) bill buying rate (b) bill selling rate (c) composite rate (d) TT buying rate 35. A traveller returning from abroad should surrender his unused foreign exchange in excess of USD 2000 to an authorised dealer within: (a) 90 days of his return to India, if he is holding foreign currency notes, and 180 days if he is holding travellers cheques (b) 60 days of his return to India (c) 30 days of his return to India (d) None of these

37. Packing credit limits are granted (a) to cover specifically packing charges incurred for goods meant for export (b) against LC or firm orders (c) against duly packed goods stored in warehouse (d) to an importer in a foreign country in respect of goods exported from India 38. State Bank Vishwayatra Foreign Travel Card is issued in __ foreign currencies a) 5 b) 6 c) 7 d) 8 39.Periodicity of XOS statement is (a) Monthly (b) Quarterly (c) Half yearly (d) Annual 40.Opinion Report on foreign buyers can be obtained from a) Reserve Bank of India b) EXIM bank c) Dun & Bradstreet d) Ministry of Commerce, Govt of India 41. SWIFT stands for a. Society for Wireless Inter Bank Financial Telecommunication b. Software for Worldwide Inter Bank Financial Telecommunication c. Society for Wireless Inter Bank Financial Transaction d. Society for Worldwide Inter Bank Financial Telecommunication 42. Pre-shipment finance is credit granted to the exporters to a. Procure Raw Materials b. Provide a secure warehouse for goods c. Ship the goods to the buyer d. All of these 43. The Packing Credit period normally should not exceed : a. 360 days b. 90 days c. 3 years d. 180 days 44. Which of these is not true for a Bill of lading a. It is a document of title b. It is issued by the Shipping Company c. It is a valid evidence for a possible insurance claim d. It must contain the value of the goods 45. Forfaiting is a. Management of Receivables b. Forefeiture of shares by a company when a shareholder fails to pay the call money c. Discounting of Export receivables with or without recourse to the exporter d. Seizure of contraband goods by the Customs

LAWS RELATING TO BANKING

NI ACT 1881

SECTION DEALS WITH 4, 5, 6 Promissory Note, Bill of Exchange, Cheque8, 9, 10 Holder, Holder in due course, Payment in due course 15 Endorsement 18 Difference in words and figures 26 Minor can draw, endorse and accept a Negotiable Instrument65 Presentation should be made during the usual hours of business and if at a

Banker’s, within banking hours. 85, 131 Protection to Paying Banker, Protection to Collecting Banker 138‐142 Bouncing of cheques – Max. Imprisonment 2 years, twice the amount or both

BR ACT 1949

SECTION DEALS WITH 5 Definition of Banking 20 Cannot lend against own shares, will tantamount to depletion in capital 21 Powers of RBI 24 SLR, Max 40%, Minimum NIL 26 Annual Return – Unclaimed Deposits over 10 years 29 To publish B/S, P&L 35 Inspection by RBI 45 ZA TO ZF Nomination to Deposit accounts, Safe Deposit Articles and Lockers

RBI Act 1934 SECTION DEALS WITH 28 & 58(2) Note refund rules 31 No Demand Draft to be issued payable to bearer 42 Defines Scheduled Banks, listed in Schedule 2 42(1) CRR 42(6) CRR – Max, Min – NIL, No interest payable since 200645 SBI, Associates, Nationalised Banks to transact govt business as Agent of RBI 49 Bank Rate SBI Act 1955 SECTION DEALS WITH 32 Conduct Government business 34 1(b) No lending against own shares

Right to Information Act 2005 CPIO Central Public Information Officer (Regional Manager)ACPIO Asst. Central Public Information Officer (Branch Head) Rs.10, For Below Poverty Line – No fee, Reply within 30 days, Max 35 days, 48 hrs Accept, Reject or Transfer ‐ Penalty 250/‐ per day and Max of Rs.25,000/‐

Indian Contract Act 1872 SECTION DEALS WITH 11 Minor cannot enter into a contract. Void ab‐initio25 Agreement without consideration is void 42 Joint promisors liable both jointly and severally 59‐61 Clayton’s Rule 68 Loans to Minors against minor’s estate can be given. Minor cannot be held

liable with his estate can be attached. 128 Surety’s liability is co‐extensive that of the borrower131 In case of death of the guarantor (where there is no contrary contract), the

guarantee stands withdrawn/ terminated 133 Any change in the contract, without surety’s consent discharges the surety 171 Definition of Lien 172 Definition of Pledge

Partnership Act 1932 SECTION DEALS WITH 4 Definition of Partnership 30 A minor can be admitted to the benefits of a partnership. Minor’s share is liable

for the acts of the firm but the minor is not personally liable for any such act. 58 Registration of the firm is optional 69 A registered firm can sue third parties to enforce rights arising from a contract.

An unregistered firm cannot; but, the creditors of an unregistered firm can sue the firm.

Income Tax Act 1961 SECTION DEALS WITH 40 Expenditure in excess of Rs.20,000/‐ proceeds if only made by Crossed Cheque

– otherwise NO DEDUCTION shall be allowed in respect of such expenditure 133(6) To compel any bank to furnish specific information ‐ However, approval

required from Commissioner or Director of Income Tax 194 TDS 269 T Deposit proceeds more than Rs.20,000/‐ to be given by Crossed DD or Pay

Order or Credit to Account COPRA 1986 Purpose of Act

Transactions in respect of Goods & Services. Better protection to Consumers

Consumer Redressal Forums District Retired Dist. Court Judge – Claims upto Rs. 20 lacs – Verdict can be challenged

at State Forum by depositing 25,000/‐ or 50% of the compensation whichever is lower

State Retired High Court Judge – Claims above Rs. 20 lacs and upto Rs. 100 lacs – Verdict can be challenged at National Forum by depositing 35,000/‐ or 50% of the compensation whichever is lower

National Retired Supreme Court Judge – Claims above Rs.100 lacs – Verdict can be challenged at Supreme Court by depositing 50,000/‐ or 50% of the compensation whichever is lower

GOVERNMENT BUSINESS & DEPOSITS

1. A SWO can accept Govt. receipts up to which amount and issue receipt. It need not be counter-signed by the Manager (cash). a) Rs.10,000/- b) Rs.25,000/- c) Rs.3,000/- d) None of the above

2. Sharing of Govt commission received between dealing branches and link branch.

a) 25:75 b) 50:50 c) 75:25 d) None of the above

3. Validity of the Pay order is upto… a) 10 days b) The end of the month c) 3 months d) a & b whichever is earlier

4. Full form of (EASIEST)

a) Electronic Accounting System in Excise and Service Tax b) Excise Tax Accounting System in Excise and Service c) Electronic Accounting System in External Services d) Electronic Accounting System in Excise and Service Tariff

5. Settlement of Central Govt transactions are done by

a) GAD, Navi Mumbai with CAS, RBI, NAGPUR b) SBI Central Office c) Respective LHO‘s d) All the above

6. Minimum deposit under PPF Scheme per year

a) Rs. 500 b) Rs.5,000 c) Rs.1,000/- d) No minimum stipulation

7. Minimum deposit under Sukanya Samriddhi Yojana Scheme per year a) Rs. 500 b) Rs.250 c) Rs.1,000/- d) No minimum stipulation

8. Minimum and Maximum deposit under SBI Tax Savings Scheme 2006

a) Rs.1000 & Rs. 1,00,000 b) Rs.500 & Rs.1,50,000 c) Rs.1000 & Rs. 1,00,000 d) Rs.1000 & Rs.1,50,000

9. Age limit for granting overdraft facility in PMJDY Account

a) 18-60 years b) 21-60 years c) 18-70 years d) No age limit

10. Maximum amount that can be sanctioned as Overdraft under PMJDY A/c a) Rs. 5,000 b) Rs. 7,500 c) Rs.10,000 d) Rs. 25,000

11. Overdraft under PMJDY A/c is valid for a period of

a) 12 months b) 24 months c) 36 months d) 30 months

12. Who are not eligible to open PPF account a) HUF b) NRI c) Trust d) All the above

13. UIDAI means

a) Universal Identification Authority of India b) Uniform Identification Authority of India c) Unique Identification Authority of India d) None of the above

14. What is the Motto of Pradhan Mantri Mudra Yojana ?

a) Include the excluded b) Funding the unfunded c)- Provide Shelter to poor d) Provide Shelter & Clothing to poor

15. Minimum Loan amount under Standup India Scheme

a) Rs. 50,000 b) Rs.1,00,000 c) Rs.5,00,000 d) Rs.10,00,000

16. What is the age limit for PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana)? a) 21 to 50 years b) 18 to 50 years c) 18 to 60 years d) 21 to 60 years

17. What is the minimum and maximum pension payable per month under Atal Pension

Yojna? a) Rs.500/- to Rs.10,000/- b) Rs.1,000/- to Rs.5,000/- c) Rs.1,000/- to Rs.25,000/- d) Rs.2,000/- to Rs.10,000/-

18. Who is the administrator for Pradan Mantri Suraksha Bhima Yojana (PMSBY)?

a) New India Assurance Co., Ltd b) SBI Life Insurance Co., Ltd c)- National Insurance Company Ltd d) Postal Life Insurance Co., Ltd

19. In a PPF account, how many withdrawals are allowed in a year?

a) 1 b) 2 c) 3 d) 12

20. Maximum deposit in Senior Citizen Savings Scheme is ___ a) Rs.10,00,000 b) Rs.1,50,000 c) Rs.5,00,000 d) Rs.15,00,000

21. what is the technology initiative that is internet based, biometrically enabled real-time

for financial inclusion? a) Rupee based initiative b) Kiosk banking c) FI banking d) Project Zero Mass

22. W.e.f. 01.07.2012, Agency commission rate for government Payments other than

pension is . a) Rs.65 b) Rs.50 c) Rs.12 d) Rs.5.50 paise per Rs.100/-

23. Senior Citizens Savings Account can be extended for a maximum period of __ years

a) 5 b) 5 yrs any number of times c) 3 d) 3 yrs any number of times

24. Core Banking Solution of RBI for Government transaction. a) e-Khajane b) e-Kuber c) GePG d) None of these

25. Whether Nomination facility is available in Sukanya Samriddhi account ?

a) Yes b) No c) Both options available d) Can’t Say

MCQs – IRAC Norms

1. The Committee on Financial System which recommended for a proper system to identify and classify NPAs was headed by a. D.R. Mehta b. M. Narasimham c. Sivaraman d. None of the above 2. Under SARFAESI Act, accounts with minimum balance of Rs. _______are eligible: a. Up to Rs.1 lac b. Above 1 lakh c. Rs.10 lac and above d. Above Rs.10 lac 3. NPA tracking in CBS happens a. Daily b. Weekly c. Monthly d. Annually 4. Stamping of NPA accounts in CBS is based on a. Arrear Condition b. Overdue amount c. Limit expiry d. KYC deficient 5. After an account is stamped as NPA by the system a. Unrealised Interest is reversed b. Further Interest application is stopped c. Provision is calculated d. All of the above 6. On which IRAC status the account is actually treated as NPA: a. Old IRAC b. New IRAC status c. Both Old and NEW d. None 7. How many arrear conditions are there in NPA tracking from 19/06/2011 a. 52 b. 42 c. 126 d. 26 8. QML stands for: a. Quick mortality loans b. Quick mortgage loans c. Quick monthly loans d. None 9. Referral limit upto Rs…….. lacs has fixed by RBI for Lok Adalats: a. 10 lacs b. 20 lacs c. 30 lacs d. 50 Lacs 10. Recovery of Debts of Rs…… lacs and above cases (inclusive of interest) has to be filed with DRT: a. 10 lacs b. 20 lacs c. 30 lacs d. 50 lacs 11. Recoveries in AUCA Accounts are credited to _____account. a. Charges b. Commission c. Recalled Assets d. Interest A/c 12. A cash credit account will become an NPA if the limit is not renewed within ‐‐‐‐‐ months from due date : a. 3 b. 9 c. 6 d.12 months from due date

13. A non performing asset is a loan or advance where a. The instalment of principal or interest thereon remains overdue for two crop seasons for short duration crops. b. The instalment of principal or interest thereon remains overdue for one crop season for long duration crops. c. The Bill remains overdue for a period of more than 90 days in the case of bill purchased and discounted. d. All of the above. 14. An account shall be classified as doubtful asset if the value of the security is eroded by ….% of the outstandings. a. 25 b. 30 c. 40 d. 50 15. An account is treated as Out of Order if Drawing Power is based on a stock statement older than ……. a. 3 months b. 6 months c. 2 months d. Delay in stock statement submission does not lead to NPA 16. Unsecured portion of NPAs in Doubtful category attract ….% provision a. 40 b. 60 c. 100 d. 80 17. What is a Special Mention Account as per our RBI’s guidelines: a. Standard Asset b. Sub‐standard Asset c. Doubtful Asset d. Standard Asset with some irregularity 18. Quick Mortality Loans are the loans fall in to the category of a. Having Shortest Moratorium Period b. Advances, where either the borrower or guarantor dies even before full disbursement of loan. c. Accounts sanctioned/disbursed and where repayment has been initiated during the financial year and slipped into NPA category within the first two years of sanction/ repayment d. None of these. 19. Provision in Standard Category Assets for SME is a. 0.25% b. 0.40% c. 1.00 d. None of the above 20. In Coverage Ratio (PCR) for NPAs expected to be maintained by the banks as per RBI is a. 50 b. 60 c. 70 d. 80 21. Stressed Assets Management Group (SAMG), has been set up to take over all NPAs with outstanding of Rs.‐‐‐‐‐‐ crore and above. a. 10 b. 20 c. 25 d. 50 22. Borrower account is to be classified as SMA in terms of ____ purpose.

a. Internal monitoring b. Restructuring c. Early recovery d. None

MCQs – ‘P’ Segment 1. Bank will submit the claims under PMAY scheme to A. National Housing Bank (NHB. B. Housing & Urban Dev.Corpn(HUDCO) C. Canara Bank D. Ministry of Housing & Urban Affairs, Govt. of India 2. Maximum Education Loan without collateral security under SBI Scholar Loan Scheme that can be given for List A Category institutes is A. 5 lacs B. 10 lacs C. 20 lacs D. 30 lacs 3. For Home Loans of Rs. 1 crore and above, a satisfactory Title Investigation Report from ………… empanelled advocates should be obtained. A. One B. Two C. Three D. Four 4. Margin against Loan against NSCs/KVP to Public ? A. 40% of face value B. 15% of face value plus accrd. Intt. C. 10% of face value plus accrd. Intt. D. 40% of face value plus accrd. Intt. 5. Bank has introduced a new product to the Prospective Home Loan borrower to negotiate confidently with the builder/seller or to finalize the property to be purchased is called….. A. SBI Home Loan PAL B. SBI Home Loan HAL C. SBI Home Loan Base D. SBI Home Loan CAL 6. Minimum Loan Amount under SBI HOME TOP UP LOAN ? A. Rs. 50000/‐ B. Rs. 100000/‐ C. Rs. 1000000/‐ D. Rs. 200000/‐ 7. Minimum Net Annual Income prescribed under SBI HOME TOP UP LOAN ? A. Rs. 100000/‐ B. Rs. 200000/‐ C. Rs. 300000/‐ D. Rs. 400000/‐ 8. In case of Builder Tie Up a single consolidated search report will be obtained from A. The Banks empanelled advocate B. Two empanelled advocates of the Bank C. Two advocates one of whom should be from outside our panel D. Three advocates at least one of whom has to be outside our panel 9. For mega/integrated township projects (approved by our Bank under the Builder Tie‐up arrangement), a longer moratorium period of upto …......... months may be permitted under Home Loan scheme, irrespective of the number of floors in the residential project. A. 24 B. 30 C. 36 D. 48 10. Maximum Education Loan without collateral security under SBI Scholar Loan Scheme that can be given for List C Category institutes is A. 5 lacs B. 7.5 lacs C. 10 lacs D. 20 lacs

11. What is the minimum net monthly income under SBI Flexipay Housing Loan scheme ? A. 21000/‐ B. 25000/‐ C. 30000/‐ D. No such requirement 12. Maximum loan available under SBI Realty scheme.. A. Rs.15 cr B. Rs. 3 cr C. Rs. 10 cr D. Rs. 1 cr

‐2‐

13. Maximum permissible loan amount under SBI Flexipay Home Loan scheme : ___ % extra, ______ times the loan quantum calculated as per the existing method based on EMI/NMI ratio A. 20%, 1.2 B. 40%, 1.4 C. 30%, 1.3 D. 25%, 1.25 14. What is the validity period of Home Loan Sanctioned? A. 3 months from date of sanction B. 4 months from date of sanction C. 6 months from date of sanction D. 9 months from date of sanction 15. Maximum moratorium period permitted under SBI Realty is ….. A. 24 months B. 12 months C. 18 months D. No Moratorium permitted. 16. The minimum amount of NRI Home loan is __________ A. 5 lacs B. 10 lacs C. 3 lacs D. 2 lacs 17. LTV ratio of the housing loan of amount above Rs. 30 Lacs and upto Rs. 75 Lacs is _______ A. 60% B. 75% C. 80% D. 90% 18. Under SBI Flexipay Home Loan Scheme, only the interest applied on Home Loan is payable during the first______ months in addition to moratorium period. A. 24 B. 30 C. 36 D. 42 19. For NRI Home loan the loan to be fully repaid by the age of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ A. 50 yr B. 55 yr C. 60 yr D. 65 yr 20. Maximum loan amount permissible for furnishings / consumer durables is ____ of the cost of the project cost or Rs. _____, whichever is lower. A. 10%, 10 lacs B. 20%, 10 lacs C. 10%, 25 lacs D. 20%, 25 lacs 21. EMI/NMI Ratio of Individuals of Net annual income above Rs. 3 Lacs and upto Rs. 5 Lacs is A. 40% B. 50% C. 60% D. 55% 22. Maximum tenure for SBI Realty is _____ A. 120 months B. 160 months C. 180 months D. 240 months 23. Home loan may be sanctioned for reimbursement of investment made by the borrower in housing from own resources or outside borrowings from friends & relatives, employer (but not from Banks/FIs) during the preceding‐‐‐‐‐‐‐‐‐months. A. 6 B. 10 C. 12 D. 24 24. Credit Report from two credit bureaus is required for the Housing loan above Rs. ______lacs A. 5 B. 10 C. 20 D. 25 25. The maximum amount of Housing Loan for NRIs/PIOs is determined by A. EMI/NMI of the borrower and LTV ratio B. Age of the borrower C. Stay of the borrower abroad D. None of the above 26. What is the maximum loan amount against LIC Policies ? It is ___ % of Surrender Value. A. 95% B. 90% C. 75% D. 65%

‐3‐

27. Max. amount of loan that can be granted under SBI Loan to Pensioners ? A. 1200000 B. 1400000 C. 750000 D. 500000 28. What is the minimum income prescribed under the Modified Two Wheeler Loan Scheme? A. 7,500/‐ B. 5,000/‐ C.10,000 D. 12,500 29. What is the Maximum loan amount permissible under SBI Student Loan for studies in India ? A. 20 lacs B. 15 lacs C. 10 lacs D. 30 lacs 30. What is the minimum net monthly income applicable for availing Xpress credit loan ? A. 5,000/‐ B. 7,500/‐ C. 10,000/‐ D. 12,000/‐ 31. What is the Maximum Age limit prescribed for Flexipay Home Loan Scheme ? A. 21 years B. 60 years C. 70 years D. 45 years 32. What is the minimum limit amount under SBI Home loan PAL (Pre approved loan) A. 10 lacs B. 20 lacs C. 25 lacs D. 30 lacs 33. What is the maximum number of applicants allowed in Car Loans ? A. 1 B. 2 C. 3 D. 4 34. Pre‐Approved loan arrangement letter (PLAL) under SBI Home Loan PAL facility is valid for‐‐‐‐‐ months A. 2 B.4 C. 3 D. 6 35. Maximum Home Loan to Individuals for Purchase/construction of a dwelling unit at Metro centers with population above 10 Lacs that comes under priority sector is ……… A. Rs.25.00 Lacs B. Rs.30.00 Lacs C. Rs.35.00 Lacs D. Rs.45.00 Lacs 36. Minimum amount of loan that can be granted under SBI Loan to Family Pensioners? A. 25000 B. 33000 C. 500000 D. 250000 37. Maximum quantum of loan under Reverse Mortgage Loan Scheme A. Rs.10.00 lacs B. Rs.25.00 lacs C. Rs.100.00 lacs D. No ceiling 38. The minimum Net Annual Income of (Agriculturists) applicant and/or co‐applicant if any, together for car loan should be________ A. 100000 B. 200000 C. 300000 D. 400000 39. Loyalty car loan is applicable to home loan borrowers who have regularly repaid the loan for ___ year after moratorium A. 1 B. 5 C. 2 D. 3 40. Base Rate system is introduced w.e.f ? A. 01.04.2010 B. 01.07.2010 C. 01.01.2010 D. None of these 41. How many Demand Loans can be sanctioned against same TDR/STDR within the overall permissible amount? A. One B. Two C. Three D. Four

‐ 4‐

42. What is the minimum loan under SBI Privilege & Shaurya scheme? A. Rs.5.00 Lakhs B. Rs.10.00 Lakhs C. Rs.20.00 Lakhs D. Rs.25.00 Lakhs 43. Name the first 2 preferred Credit Information Companies for Auto Loans above Rs.5 lacs? A. Cibil & CRIF High Mark B. CIBIL & Experian C. Experian & Equifax D. Experian & CRIF High Mark 44. What is the maximum loan available under SBI Insta Credit which is being offered to pre‐selected Xpress Credit Loan customers on INB platform? A. 20,000 B. 1,00,000 C. 3,00,000 D. 5,00,000 45. What is the minimum loan amount that can be granted against XPRESS Elite : Personal Loan ? A. 50,000 B. 1,00,000 C. 2,00,000 D. 3,00,000 46. Margin required to be brought in by the borrower for Student Loans up to Rs. 4.00 Lac is ........and above Rs. 4.00 Lac is......for studies in IndiA. A. 5% & 10% B. Nil & 10% C. Nil & 5% D. Nil & 15% 47. A product SBI Bridge Home loan has been launched by our bank. It is a ………………. Term loan to bridge the cash flow mismatch of the customer. A. Long B. Medium C. Short D. Medium or Short 48. Which of these is not a current variant of our Gold Loans A. SBI Personal Gold Loan B. SBI Personal Liquid Gold Loan C. SBI Gold Loan (Bullet Repayment) D. SBI Gold Loan Lite 49. Courses offered in which of these countries are not eligible under SBI Global Ed‐vantage scheme A. Australia B. New Zealand C. China D. Hong Kong 50. Which of these statements is not correct regarding Insta Home Top up loans A. Minimum Home Loan limit should be Rs.20.00 Lacs with INB facility B. Minimum residual tenure of the Home Loan should be 5 years C. The customer should not have any live Home Top up Loan D. The customer should be having a satisfactory track record of 2 years or more

ANSWERS

1 11 21 31 41 2 12 22 32 42 3 13 23 33 43 4 14 24 34 44 5 15 25 35 45 6 16 26 36 46 7 17 27 37 47 8 18 28 38 48 9 19 29 39 49 10 20 30 40 50

PER SEGMENT MCQs 1) Safe Custody & Safe Deposit Articles

a) U/S Sec 45 ZC of BR Act b) U/S Sec 45 ZC of NI Act c) U/S Sec 54 ZC of BR Act d) U/S Sec 54 ZC of NI Act

2) Nomination introduced based on the Recommendations of a) Goiporia Committee b) R K Gupta Committee c) Talwar Committee d) Nayak Committee 3) Under which Sec__________complete migrationto ‘CTS-2010’ standard for cheques

a) section 18 of the Payment and Settlement Act 2007 b) section 25 of the Payment and Settlement Act 2007 c) section 18 of the Negotiable Instruments Acts 1881 d) section 25 of the Negotiable Instruments Acts 1881

4) PEHLA KADAM & PEHLI UDAAN ATM card will have

a) domestic Classic ATM –cum-Debit Card. b) Photo ATM-cum-Debit Card c) Rupay ATM-cum-Debit Card d) No ATM-cum-Debit card will be issued

5) How many number of applicants in different names can be made in (IPO equity) ASBA

a) Three applications b) Five applications c) Two applications d) Only one application

6) Who is the Nodal Branch for ASBA

a) Mumbai Main Branch b) Kolkatta Main Brach c) Capital Market Branch, Mumbai d) Nariman Point Branch, Mumbai

7) In how many currencies FCNR(B) can be opened

a) Eight currencies b) Seven currencies c) Six Currencies d) Four currencies

8) Max. period of RFC (Resident Foreign Currency Account Scheme)

a) Three Years b) Five Years c) Seven Years d) Ten years

9) As per KYC Guidelines threshold limit for a business enterprise means

a) Rs. 5 lacs. b) 25% of annual income c) one month turnover d) 3 months turnover

10) Which of the following defines a Customer? a. B.R.Act.1949 b. N.I.Act.1881 c. KYC & AML Guidelines d. None of the above 11) For Low risk customers, Customer Identification data should be updated once in _____years. a. 5 years b. 10 years c. 8 years d. 6 years 12) Non compliance of the provisions of PML Act will invite a minimum penalty of Rs------- a. 5000/- b. 10000/- c. 15000/- d. 20000

13) Limit for calling for general information of all Term Deposits by IT Office a. Rs.20,000 and above b. Rs.50,000 and above c. Rs. 1 lac and above d. Rs. 2 lacs and above 14) One copy of 15G and H forms after obtention must be sent to I T Dept along with the abstract a. on fortnightly basis b. on monthly basis c. before 7th of succeeding month d. no need to submit 15)If the balance in the inoperative/dormant SB account is more than Rs………….additional steps like contacting the depositor through e-mail/telephone and contacting the introducer of the SB account has to be done.

a) Rs.50000/-

b) Rs.25000/-

c) Rs.100000/-

d) None of these 16) The total no of withdrawals allowed in Small and Basic Savings Account a) 5 withdrawals per month including ATM transactions

b) 4 withdrawals per month excluding ATM transactions

c) 5 withdrawals per month including ATM transactions

d) 4 withdrawals per month including ATM transactions 17) Time allowed for the customer to present the KYC papers to a Branch of his choice after applying for opening an account through online. a) 30 days

b) 45 days

c) 10 days

d) 15 days 18) What is the minimum pay-out stipulated under CSP per month?

a) Rs.1.50 lacs per month

b) Rs. 2.00 lacs per month

c) Rs.1.25 lacs per month d) None of the above

19)The tenure of Time deposits is limited to a maximum of 120 months. This stipulation is given by……………..

a) RBI

b) IBA

c) Based on the instructions of individual Banks

d) None of the above 20)The photographs obtained from illiterate persons for TD/STD deposits at the time of deposits has to be renewed every ………………

a) Five years

b) Three years

c) Every years

d) None of these 21)What is the maximum tenure for which Annuity Deposit can be made?

a) 60 months

b) 120 months

c) Maximum period of 25 years

d) None of these 22) What is the penalty for default in payment of minimum deposit in SBI Flexi Deposit Scheme? a) Rs.100/- per financial year

b) NIL

c) Rs.50/- per financial year

d) None of these 23) What is the additional interest provided to senior citizen deposits?

a) 0.50% above the card rates

b) 0.25% above the card rates

c) 1% above the card rate

d) None of these 24) What is the rate of interest applicable when FCNR deposit is paid before maturity within one year?

a) If it is paid before maturity within one year no interest is paid

b) 1% less than the contracted interest rate is paid

c) 1% less than the interest applicable for the period for which the deposit is run is paid

d) Savings Bank interest is paid

25) What is the minimum period of deposit in SBI Flexi Deposit Account?

a) 3 years

b) 1 year

c) 7 years

d) 5 years 26) Sale proceeds of sale of residential house to be invested in purchase of another residential house within …………………period to avoid capital gains tax. a) 5 years

b) 3 years c) 10 years

d) 4 years 27) Annuity Deposit is a……….. a) Demand deposit account

b) Recurring deposit account

c) Term deposit account

d) None of these 28) In respect of Tax Deducted at Source (TDS) from interest paid on a deposit which of the following statements is/are incorrect? a) Form 16A has to be provided to the depositors on quarterly basis

b) Form 16A can be generated only when return of TDS (Form 26Q/27Q) is electronically filed

c) Form 15G/15H has to be obtained in triplicate

d) None of these 29) Liberalized KYC is available for a) Small Account

b) Basic Savings Account

c) Salary Account

d) Corporate Salary Package Account

P Seg Asset Products

LOAN ELIGIBILITY WHO ARE ELIGIBLE INCOME CRITERIA MIN LOAN MAX LOAN MARGIN REPAYMENT21-65 Years Salaried 2.50 lacs p.a. 48 X NMI 15% On Road Price,10% for CSP 3 - 7 years

Max 70 years Professionals 3 lacs p.a. 4 X N.Profit Max cost of accessories 5%/<50K TAT- 2 days

Agriculturists 4 lacs p.a. 3 X NAI EMI/NMI <10L-50%,>10L-70%

Takeover : Not permitted

Reimbursement facility:Withdrawn

CERTIFIED PRE-OWNED CAR LOAN

TL for purchase of certified pre-

owned cars

Age of Vehicle not more than 8 years old.

Min NAI: 2 Lacs, Max Loan : 30 x NMI Min: 1 lac Max: 5 lacs Margin - 20%, No Takeover

8 yrs minus age of car, max 5 yrs

21-65 Yrs Employed for 2 Years 18 X NMI 15% On Road Price 84 Months

COMBO LOAN

SBI LOYALTY CAR LOAN Min NAI -2 lacs

No Margin, Security: Hypn of car, No extension of EM upto 10

lacs.84 months

CAR LOAN LITE 21 - 65 Years Max - 4 lacs LTV 75% of On Road Price, EMI/NMI upto 10L-50%,>10L-60% 60 months

ASSURED CAR LOAN

18 Years & Max - No bar

Existing customers with unencumbered FDs

Third party TDRs not accepted Min - 2 Lacs Max-No lImit 100% of FD for On Road Price

3-7 years, as per the choice of customer

TWO WHEELER LOAN

Min NMI - 12,500/-, NAI - 150,000

Min -30,000, Max <300,000

6 X NMI, 0.5 X NAI

25% On Road Price, EMI/NMI < 50% 36 months

HIGH VALUE SUPER BIKE LOAN

21- 65 Years, (Target 21-40)

TL & OD, Min 500 CC - NO for 2nd hand bikes Min NAI - 2.50 lacs Min - 250,000

EMI/NMI -50% for 10 lacs, 60% > 10L

15% Ex-showroom Price, 10% for Salary Package Accts,

Migration within 2 months in BPR5 years

Discontinued vide e-Cir No. 493/2018-19 dated 25-7-2018

USD 1000 or equivalent per month

If NAI is >10 L, EMI/NMI ratio will be 70%

Businessmen, Prof & SE, Agri engaged in economic activity which gives them income but no proof of income, NAI 2.5 lacs

OD:Withdrawn Prepayment

penalty:3% if it is within 3 yrs (waived upto 31.12.2018)

Max:2 Borrowers, Int Reduction for Women/MPs -5 bps, ALC Comm:0.20%, Dealer:1.30%, DSE:0.20%

Migration within 2 months, Insurance policy may not be obtained fm 2nd yr for STD acts< 20L (Website: vahan.nic.in, SMS VAHAN_Registration No. to 7738299899)

P SEGMENT ASSET PRODUCTS – Ref: SBI TIMES – PBBU SITE -eManuals -eCirculars

NRI CAR LOANSB a/c for 12 months-Avg 50K or New A/c with USD 5000, Others-SB 2 Yrs-50K Avg Bal or FD, To open SB A/c with us. Security-Hypn of Vehicle

To existing HTL borrowers with satisfactory repayment record of 12 M,

taken possession & created EM.

Salaried, For Prof & Agri- Min 1 yr satisfactory conduct

CAR LOAN (Ref: e-Cir No. 660/2018-19

dated 21/8/2018)

N.A.

G.V. Giri, SBILD, Trichy Page 1 18-09-2018


LOAN ELIGIBILITY WHO ARE ELIGIBLE INCOME CRITERIA MIN LOAN MAX LOAN MARGIN REPAYMENT

PENSIONERS EMI/NMI : 50% Rs. 25,000/-

FAMILY PENSIONERS EMI/NMI : 33% Rs. 25,000/-

JAI JAWAN PENSION LOAN

Upto 56 years EMI/NMI-50% 14 lacs Max: 36 times Net Monthly Pension 84 months

Salary Reputed Cos. NMI 5000/- OD : 5 LACS Min - 6 M,

EMI/NMI 50% TL: 25,000/-Max- Lower of 72M/resi serv

SBI INSTA CREDITNo application,

processing, documentation

20% of Xpress Cr

limit, Min -20K 3 lacs

XPRESS LITE

All Senior officials of State

& Central Govt/PSUs

With Gross Monthly Salary above Rs.1 lac

NMI to be worked out by keying last 6M

salary credit

24 M NMI, Min Loan -

Rs.3 lacs by Overdraft

Max - 20 Lacs, EMI/NMI not

exceeding 60%

Can be availed by Sr Officials who are maintaining Salary

accounts with us and also Salary a/cs with other banks.

Max-72M or residual

service period whichever is

less

XPRESS POWER (ERSTWHILE XPRESS

BANDHAN)

Permanent employee with

1 year confirmed

service

Employed in Cent/State/Quasi Govts,

PSUs, Edu. Instns. of national repute with Min

Grs Salary Rs.50000

CIBIL Score of 700 with no default. With

Check-off & W/o Check-off are avble.

24 X NMI, Min OD- 5 lacs, TL-

25KMax - 15 lacs

Prepayment penalty - 3%, Penal Int - 2% p.a. on overdue amt.

Schme rolled out in 50 brs Pan India.

Max-60M or residual

service period whichever is

less

XPRESS CREDIT - IT EMPLOYEES

All Employers in IT/ITeS industry

who are member of NASSCOM

Employees with min of 6 months service and

having salary account with us.

Overdraft w/o cheq book. Min. NMI

25000/-

18 x NMI, Min Loan-50K

Max - 10 lacs, EMI/NMI not to

exceed 50%

If CIBIL >=800 or TPG provided, repayment will be 36 M and if CIBIL score less than 800 - 12

months only.

Only in select cities, in TN- only Chennai

XPRESS CREDIT NON PERMANENT

EMPLOYEES

Salary a/c with us for 1 yr, working for

3 yrs

Casual, Part Time and Contractual employees

with min NMI 10K, EMI/NMI not to exceed

40%

Contractual employee should

have min 12 months service left for expiry

of contract

12 times avg of last 6 M

salary credit in a/c by

Demand Loan

Min Loan- 50K, Max -2 Lacs if NMI <50K and Max 5 Lacs if

NMI >50K

Only Urban & Metro Branches are authorised. Circle CGM can

authorise captive & campus branches in RUSU.

36 for NPEs, for Cont.

empl. 36M or resi. period

Tech product self driven - system intelligently preselects borrowers. Validity 3 months. Min

existing Loan limit Rs.1 lac with INB facility, 1 yr satisfactory track record, No live top-up loan, No

instance of RG3 & beyond in last 1 yr

Permanent Staff with 1 yr experience, No Salary account - no Xpress Credit

24 X NMI – 15 L, For teaching & non teaching

staff of Govt schools - 24 NMI, for Govt Aided Schools - Max 12 Months Gross Salary

18 x NMI- Max 14 lacs upto 72 yrs, 12 L – 74 Y, 7.5 L – 76 YAge Upto 72/74/76 Yrs –

Repayment 60/48/24 Mth

XPRESS CREDIT

18 X NMI – Max 5 lacs upto 72 yrs, 4.5L – 74 Y, 2.5L – 76 Y

Pensioners of Armed Forces, Above 56 yrs to 72/74/76 yrs as eligible to Pensioners Schm

PENSION LOAN

Repayment in 1 Yr/3 Yrs - based on the remaining tenure 12-35M/36M-48M.

Max Repayment 3 Yrs.




18- 70 YRS

No. of Co-Borrowers: 3 (spouse/children/parent

s/siblings) – Can be

relaxed by AGM Region/Br – Provided

registered in joint name of all borrowers. If the

co-applicants are unrelated, then

DGM(B&O) has to permit the relaxation.

Maximum loan amount will be lowest

of loan amount assessed on the

basis of a) Permissible EMI/NMI Ratio, (b) Maximum

permissible LTV ratio and (c) Loan amount

applied for.

Interiors & Furnishings - 10% or 25 lacs whichever is lower. Repairs – Max Loan – 10 lacs,

for Construction – No Upper Cap,

Reimbursement available upto 12 Months (LTV 75%), No Stamp Duty, Registration & Doc. Charges, HTL LTV Ratio, Upto 30 lacs 90%, > 30 L < 75 Lacs 80%, Above 75 lacs 75%

Max: 30 years, For CRE,

Businessmen–

25 yrs. Moratorium –

18 M or 2 M of completion

whichever is earlier. For Big Projects, Upto

7 flrs–18M,

14 flrs–24M,

21 flrs–30M,

>21 flrs–36M

SBI FLEXIPAY HOME LOAN 21-45 Yrs Salaried Govt, PSUs,

Reputed companies

Future rentals can be added to income for

arriving eligibility

Min: 25 yrs

Max:30 yrs

NRI HOME LOAN to NRIs & PIOs 18-60 years 3 Lacs No CAP

SBI Privilege & Shaurya HLs 18-75 years Rs. 10 lacs Rs. 50 Crs.

60 M to 360 M or 75 yrs whichever

is earlier

SBI REALTY Min: Rs. 5 lacs

To Purchase a residential Plot for Construction within Urban/Metro with population > 1 lac

Max:15 Crores

Construction to be completed within 5 years. Max LTV Ratio based on loan limit < 75 Lacs -

70%, >75 Lacs - 60%

10 Years - No Moratium

Overdraft with reducing DP facility provided for parking of surplus funds

Minimum employment 2 years in India/Abroad

Cheque Book & INB to be given only after full disbursement of loan 20 lacs No CAP

Max Tenor - 30 Yrs. Loan to be repaid before the NRI attains the age of 60 years. Expected Rentals &

Co-borrower's income can be included.

Privilege HL to Central/State Govt & Shaurya HL to Defence (Army, Navy & Airforce)

HOUSING LOAN SCHEME

Net Annual Income EMI/NMI Ratio,

Upto Rs.1,20,000/- 20%, 120001 – 300000/- 30%,

300001 – 600000/- 55%,

600001 – 800000/- 60%,

800001 – 10,00,000 65%

Above Rs.10,00,000/- 70%

OTHERS : Priority Sector – In Metros : Construction/Purchase – 35 lacs with project cost 45 lacs, Repairs – 5 lacs – In Other Areas :

Construction-25 lacs with project cost of 30 lacs, Repairs- 2 lacs. Two valuation reports to be obtained for loans above Rs.1 crore. Preclosure Penalty – NIL, Inspection to be conducted immediately if 2 EMIs are in default, for NPAs – at Half Yearly rests. I.T. Benefits available under 80C

for Principal upto Rs.1.50 lacs. Interest upto Rs.2.00 lacs can be deductible in taxable income. For Takeovers – A/c should be regular, no

project delay, the borrower should have the possession of the property, LTV should not exceed 75%. For Women borrowers 0.05% (5 bps) concession available. Validity of Sanction - 3 months from sanction date. GM(Network) can approve a longer moratorium period of upto 48 months. Administrative Clearance required for loans above Rs.7.5 crores & property more than 15 yrs old (if the expected longevity of the property is more than 5 years of the loan tenure, no administrative clearance required).PDCs - 48, 2 Credit Reports for loans >10L (Cibil & Equifax). Execution of Home Loan documents on the basis of power of attorney is permitted in case of NRIs, Defence Personnel & Paramility Forces only.

SBI MAXGAINCustomers

having SB/CA can avail

Min Loan - 20 lacs, Max Loan - 1.20 times of eligibility subject to LTV

norms, Only interest to be serviced during moratorium first 36M to

60M, Next 36 M - 100% EMI, Next 36 M - 105% EMI

Can avail another HL for construction simulatenously.

Takeover permitted if it is with construction.



LOAN ELIGIBILITY WHO ARE ELIGIBLE INCOME CRITERIA MIN LOAN MAX LOAN MARGIN REPAYMENTSBI PAL –

Preapproved Home Loan

10 Lacs No CAP

SBI TRIBAL PLUS –

FOR HILLY/TRIBAL AREAS

Min 21 yrs - Max 60 yrs by

which time loan to be repaid

Salaried : 36 x NMI, Others : 2 times of Average of 3

years NAI. Margin for construction-20%, repairs-25%

15 Years, Before 65 yrs

of age

HAMARA GHAR N.A. 30 Lacs

INSTA HOME TOPUP LOAN

No application, processing,

documentation

5% of HL limit, Min -1 Lac 5 Lacs

REVERSE MORTGAGE LOAN 3 lacs 1 crore

90% of property value - Lumpsum 50%, balance in

monthly/quarterly instalments.

Younger Borrower

<68 -15 yrs, > 68 - 10 yrs

SBI HOME TOP UP LOAN Minimum NAI : 3 lacs

2 lacs - For Cat 1 - 10% of

Limit upto 75L, 15%

>75L

Category 1 - 50 lacs,

Category 2 - Max. 5 crores

Extension of EM upto Rs.5 lacs not necessary. Max of 2 loans allowed, 2nd loan can be given

after a gap of 1 year

Residual Period or 15

yrs whichever is higher

LOAN AGAINST PROPERTY

Resi. Property in the name of self/spouse/

children/parent/siblings

IT Assessee/NRI, NMI : Rs. 25000

Min Loan : 5 lacs, Max : 7.5 Cr.

NAI - 3-5 L - EMI/NMI - 50%, 5-10L - 55%, >10L - 60%

LTV Ratio - Upto 1 Cr - 65%, Abv 1 Cr - 60%

Min : 5 Yrs, Max : 15 Yrs, to be closed before 70 yrs

of age

PRADHAN MANTRI AWAS YOJANA

Repayment as per normal Housing Loan

Should be 1st House for Borrower - Beneficiary family should not own Pucca

house anywhere in India. Credit Link Subsidy available from Govt. for HLs availed for acquisition/construction &

Repair/Extn of kucha/semi pucca house.

EWS - Annual Family Income Rs.3 lacs, LIG-6 lacs, MIG-I-12 lacs & MIG-II-18 lacs. Max Loan without

proof of income - Rs. 5 lacs.

Family Definition - Husband, Wife and unmarried children. Max Carpet Area of house - For

EWS/LIG/MIG-I/MIG-II- 30/60/120/150 sqmts. Max. subsidy amount payable will be 2.67

lacs/2.67 lacs/2.35 lacs/2.30 lacs

Fixed Rate for 2 years @ 0.35% over 1 year MCLR for women (salaried); thereafter linked to applicable MCLR with the same

spread (for others (sal) MCLR +0.40%)

Min - Nil, Max - For Salaried with check-off - 20 lacs,

Others - 15 lacs

Repayment in 60 M/120 M - based on the remaining HL tenure. Only one live Insta Home Top Up. Offer in the INB Site will be valid for 30

days from the date of activation of the offer.

Non-BPR Urban : 1 Cr, Select BPR Centres: 7.5 Cr, Other

BPR : 2 Cr, RUSU with population < 1 Lac - NIL

Sanction to Loan before finalisation of property –

Sanction Valid for 3 months only

PAL will be available only at RACPCs. KYC/CIBIL applicable. All documents except

property docs will be collected

Category 1 - HTL borrowers within one year acquiring ready to move properties

& mortgage created with a Minimum Loan of 30 lacs. Category 2 - At least one year satisfactory repayment track

record.

Property should be self-acquired and self-owned. Age - 60 yrs, If jointly with spouse, spouse's age -58 yrs, Should not have

more than one surviving spouse - Undertaking not to remarry during the course of the term loan.

Loan given for purchase of New House/Construction/Repair/Old House (Less

than 10 Yrs old) in Hilly Areas where mortgage is not possible

Tech product self driven - system intelligently preselects borrowers. Min HL limit Rs.20 lacs with INB facility, 3 yrs satisfactory track record,

No live top-up loan, CIBIL Min 700

No switch over option during 2 years, Prepayment penalty @2% during the first 2 years only. Available as Term Loan only.




STUDENT LOANFor study in

India and abroad

Security:Upto 7.5 lacs-NIL, Above 7.5 lacs - 100%

collaterals.

10 Lacs in India;

20 Lacs in abroad

Repayment Holiday/ Moratorium: Course period + 1 year or 6 months

after getting job, whichever is earlier. Margin:Upto 4 lacs-NIL, > 4 lacs-5%

for India, 15% for abroad

Repayment period - 15 years after

commencement of

repayment

SCHOLAR LOANFor Study in

India in Premier Institutes

Margin Upto 4 lacs : Nil, Above 4 - 7.5 lacs : 5%

Repayment period - 15 years after

commencement of

repayment

DL/OD AGAINST BANK'S TERM

DEPOSITS

Online OD against TDR/STDR Rs.25,000/- Rs. 5 Crores 25% for TDR/e-TDR and 10% for

STDR/e-STDR5 yrs for STD & 3 yrs for TD

Online Loan against Shares CNX 500 Scrips Rs.50,000/- DL/OD - 30

Months

Advance under LIC Policies 5% Margin Within 3 yrs

SBI Personal Gold loan 25% Margin 36 EMIs

SBI P Gold Loan - Bullet Repayment 35% Margin for Public & Staff 12 Months

SBI Liquid Gold Loan

Recently Withdrawn Schemes: Rent Plus, Saral, Festival Advance, Education Plus, Bhagya Rekha, Credit Khazana,Gram Niwas and Sahyog Niwas.

Individuals of 21 years of age Rs. 20,000 Rs. 20 lacs

Overdraft with a provision of Cheque Book. INB customers should be advised that they

can transact through their INB platform.

Margin : 25%, 36 months repayment subject to review after every 12 months. Int to be serviced

monthly & Principal to be paid at the end.

The repayment of EMIs should commence immediately after the month of disbursement.

Available in DL/OD - No advance will be granted against SBI shares as prohibited under Section 20 (1) (a) of BR Act, 1949.

Personal Purpose : Max 20 lacs, For applying IPOs : Max 10 lacs, Margin : 50% of prevailing

stock prices.

Bullet Payment of Intt and Princ. at the end of term. Intt at monthly rests but will be due along

with principal only at maturity.

Linked to Surrender Value of the LIC policy - Available as DL/OD

Single Name only. Not available for NRE/NRO/FCNRB/ MODS/TAX Savings Deposits. Minimum residual period of deposit : 6 months - Available between 08:00 to 20:00 IST.

Max Loan - Upto 90% of Face Value + Accured Interest, Rate of Interest : 1% above the deposit rate, Maximum Loans against a Deposit : 4, If approved by AGM : 5

Repayment Holiday/ Moratorium: Course period + 1 year

ENHANCED LIMIT

(With Collateral/Without Coll)List AA - /40 Lacs List A 30 Lacs / 20 LacsList B - /20 Lacs List C 30 lacs/7.50 lacs

0.50% concession for girl child.


P Seg Deposit Products

Product Min Deposit Max Deposit Period Rate of Interest Remarks

Recurring Deposit

Scheme100/- No maximum

12 months to 120 months

As applicable to Term Deposit interest for the period of RD.

Loan/Overdraft available upto 90% available on the balance against RD. TDS Applicable.

SBI Flexi Deposit

5000/- per year and

500/- at any one instance

50,000/- per yr 5-7 yrs

As applicable to Term Deposit. Compounding quarterly interest based on the balance outstanding on the last

date of the month.

1) Variant of RD – variable deposit instead of fixed

instalment 2) TDS Applicable 3) Penalty Rs.50/- per year for default of minimum deposit.

Annuity Deposit

Scheme

25,000/- - Monthly

annuity to be received is Rs.1000/-

No limit 36/60/84 or 120 months

As applicable to Term Deposit interest. Premature payment only in

case of death of depositor

1) To enable the depositor to pay one time lump sum amount and to receive the same in Equated Monthly Instalments (EMIs), comprising a part of the principal amount as well as interest on the reducing principal amount, compounded at quarterly rests and discounted to the monthly value. 2) Loan available upto 75% of the balance amount of annuity. Further annuity to be credited to loan account only.

SBI Tax Savings

Scheme, 20061,000/- 150,000/- 5 yrs to 10

yrsAs applicable to Term Deposit. TD or

STD can be openedResident Individual, HUF, PAN – Term Deposit cannot be

encashed before the end of 5 yrs.

SBI Multi Option

Deposits10,000/- No maximum 1 yr to 5 yrs As applicable to Term Deposit.

Fixed Deposits with automatic withdrawal facility so as to provide liquidity as and when required. Withdrawals can be made in units of Rs.1,000/- from the Deposits by issuing a cheque from Savings Bank Account.

Term Deposits 1,000/- No maximum

7 days to 10 yrs, Loan

upto 90% of deposit with additional

1% interest

Sr Ctns– 0.50% extra, For upto 5 lacs

- 0.50% penalty, above 5 lacs - 1.00%

Interest – monthly/quarterly/annually – for monthly interval

at discounted rates - TDS applicable if interest exceeds Rs.10,000/- per customer, per bank – TDS can be debited

to SB or CA – Auto renewal if no maturity instructions

received. Nomination facility available and recommended.

LIABILITY PBBU PRODUCTS – SOURCE SBI TIMES – PBBU DEPARTMENT – LIABILITY PRODUCTS

Page 1 P Seg Deposit Products


Product Min Deposit Max Deposit Period Others Remarks

Special Term

Deposits1,000/- No maximum 6 months to

10 yrsSr Ctns– 0.50% extra, For upto 5 lacs

- 0.50% penalty, above 5 lacs - 1.00%Interest compounded quarterly and paid at the time of maturity. All other features are same as Term Deposit.

Small Account Nil Balance Rs.50000/-1 yr – can

be extended another 1 yr

Liberalised KYC norms – Simplified

Account opening form. Cr- 1 lac pa, Dr 10000 pm, Bal-50000

1) Cheque book facility available, 2) Basic ATM-cum-debit card given, No AMC, 3) Max – 4 withdrawals per month incl.

ATM, 4) Collection of Govt. chqs – free

Basic Savings Bank

AccountNil Balance No Upper

limit

KYC Compliant - Simplified Account opening form - Customer cannot have both normal Savings Bank

Account and BSBDA (Normal SB to be closed within 30 days from the

opening of BSBDA).

In order to enable the common man to open/maintainbank accounts free of cost. 1) Cheque book facility

available, 2) Basic Rupay ATM-cum-debit card given, No AMC, 3) Max – 4 withdrawals per month incl. ATMs,

4) Collection of Govt. chqs – free

5) INB Facility is available

Savings Bank

Account

M/U/SU/R - MAB

3K,3,2,1KNo Upper limit

Upto Rs.1 Crore - 3.50% and above Rs.1 Crore - 4.00% on daily balance.

Periodicity of Interest : Will be credited on Quarterly basis.

QAB >= 1 L & Sr.Ctn. - Free MCCs, QAB < 1L -First 25 cheque leaves free in a financial year, thereafter 10 Chq -

30+ST, 25 Chq-75 + ST, 50 Chq - 150 + ST, For CSP - Irrespective of QAB - NIL, Penalty for not maintaining MAB

in M/U/SU/R areas levied wef 1/4/2017.

Savings Plus

Account

Auto Sweep TD/STD – 1

to 5 yrs

To provide an automatic facility to high net worth savings bank customers for their excess funds in SB account to be invested in Term Deposits on an ongoing basis and to effectively combat competition. Threshold Amount: Rs.35,000/-, Any surplus funds retaining a minimum balance of Rs.25,000/- (to be set up by customer) will be transferred as Term Deposit with a minimum of Rs.10000/- & in multiples of 1000/- at one instance.



Product Min Deposit Max Deposit Period Others Remarks

Pehla Kadam

Pehli Udaan

PMJJBY - Pradhan

Mantri Jeevan

Jyoti Bima Yojana

PMSBY - Pradhan

Mantri Suraksha

Bima Yojana

APY - Atal Pension

Yojana

Guaranteed minimum monthly pension for the subscribers ranging between Rs. 1000 and Rs. 5000 per month by the Government. The exit from APY is permitted at the age of 60 yrs with 100% annuitisation of pension wealth. On exit,

pension would be available to the subscriber.

SB-OD under

PMJDY

Period of Loan : 36 months, Quantum : 50% of credit summations during the last 6 months, Average Balance - 4

months, Rs.5000/- whichever is less

Eligibility : All Indian Citizens aged between 18 to 40 yrs. Aadhaar will the primary KYC. APY is focussed on all citizens in urorganized sector. The scheme

is administered by PFRDA.

Life Cover available upto 55 years of age for Rs. 2 lacs at a yearly premium of Rs.330/- from SBI Life Insurance Co. Ltd.

Accidental Death Cover available for 18-70 years old - Rs.2 lacs available from National Insurance Co. Ltd.

Age : 18- 60 years, 6 months old account, Account seeded with Aadhaar. Rs.30,000/- life cover available from LIC (Aam Aadmi Bima Yojana), 2 lacs -

Personal Accident Cover

Minor Accounts (of any Age) to be operated by Guardian/Natural Guardian/Mother as Guardian

Minor Accounts (above 10 years of Age), Singly operated, Available to minors who can sign uniformly and comply with KYC norms.

Minor's Photo embossed ATM-cum-Debit Card. SBI Life Product (optional) - Smart Scholar. Maximum Balance - 10 lacs, INB/POS : Rs. 5,000 per day, Mobile : Rs.2,000 per

day, 10 Chq leaves, OD - 2 months salary in case of Salary Package for Pehla Kadam (Not for Pehli Udaan), Auto

Sweep - Min Threshold:Rs.20,000; Sweep in multiple of 1000/- with a minimum of 10,000/-, PAI available (for parent

- Pehla Kadam) by SBI General.


SME PRODUCTS

Asset Product PURPOSE MARGIN LIMIT REPAYMENT OTHER FEATURES

SME CREDIT CARD

Unit with 2 years of satisfactory

track record.

No Collaterals to be insisted for

SSI Units.

upto 25000-

NIL

25000-10 Lacs-

20%

Max 10.00 Lacs

TL- 5 Years

CC- Valid for 3 years

subject to annual review

1. Min Score- 60% (36 out of 60)

2. Assessment- For SSI- as per Nayak committee, SBF & Retail-20% of

Annual T/O, SE & Prof -50% of Gross A.I.

3. Credit summation in the a/c should not be less than 50% of

projected sales

4. Submission of audited B/S waived

5. Stock statement to be obtained yearly on 28/29th Feb.

6. SSI limits to be covered under CGTMSE compulsory.

SME SMART SCORE

Loan as per scoring model -

Rationale: (1) To cut down delays,

(2) To simplify the approval

process.

25% for WC

33% for T/L

5-50 Lacs (Mfg)

5-25 Lacs (Trade)

T/L - 5 Years (excluding

6M moratorium)

W/C Limit valid for 2

Years subject to yearly

review

1. Promoter's Age - below 66 years (18 yrs - 65 yrs)

2. Minimum Score - 60% (50% in each group -

Personal+Business+Collateral: 30+50+20)

3. CRA applicable for loans above Rs.25 lacs.

4. SSI-20% of P.S., T&S-15% of Projected Sales

SME CAR LOAN

TL to promoter/partner/ family

members in Own/Unit's Name -

Spouse Income can be added if

she agrees to be a guarantor.

15%, SA can

reduce 5%,

AGM - 5%, Min

reqd margin-5%

NAI - Rs. 4 lac,

Max - 2.5 X NAI,

EMI/NMI should not

exceed 50% (60% by

AGM)

7 years

No OD Facility. No additional security - only hypothecation of

vehicle. PDCs to be obtained. P-Seg Doc. Used Vehicle - Yes, but less

than 5 years - Max loan: 15 lacs -Single ownership -

NO insurance claim - Take over - Only Standard Assets,

Care : No loan for Duplicate RC

LEASE RENTAL

DISCOUNTING

SCHEME

(ERSTWHILE RENT

PLUS)

To meet borrower Liquidity

mismatch - No speculative

purpose - Owners of resi & comml

properties - Rented to :

MNCs/Banks/Corp./Govt.

30%, 50% for

Maals

NBG - Min 10L, Max

50 Cr. MCG - Min

>50Cr, Max 500 Cr.

Maals - Max 200 Cr

10 years or residual

lease period

1. Collateral value should be minimum 143% of loan amount,

2. For New Accounts, CRA to be SB-3 & better.

3. Loan to be recalled if a/c irregular for 3 months

4. DSCR : 1.20, 5. Valuation once in 3 years.

DOCTOR PLUS

Qualified Allopathic medical

practitioners. Given as MTL for

Buying equipment, Setting up of

Clinics, Purchase of Ambulance,

Computers, Vehicles -

Expansion/modernisation of

existing premises, etc.

15%

Corporates,

Partnerships & Trusts -

Individuals - All

Centres - Min - 10

Lacs & Max 5 Cr.

Max 7 Yrs with 12

months moratorium

1. For Non Allopathic Doctors- Not applicable

2.Min DSCR- 1.5:1

3. PRICING

For Loan more than 25 Lacs- CRA below SB 9 will not be considered.

4. for Loan upto 2 Crs- No tangible security, to be covered under

CGTMSE. Above 2 Crs - Minimum 25% Tangible Security & Personal

Guarantee of promoters required.

G.V. Giri, SBLC, TrichyPage 1

SME PRODUCTS


SME CREDIT PLUS

To meet unforeseen expenditure/

bulk orders/tax /repairs - No

cheque book to be issued - Clean

Cash Credit - EM to be extended.

New/existing

units with

FBWC of Rs.25

lacs & over are

eligible

20% of FBWC,

Max 25 Lacs 2 Months

1. Min CRA SB 9 and above

2. Max 12 times in a year the scheme can be availed with the gap of

15 days.

3. Standard for 2 years.

4. Customers of High standing and integrity.

5. Existing security to be extended.

6. Limit to be renewed along with working capital every year

STANDBY LINE OF

CREDIT

SSI & C&I borrowers rated SB 10

& abv - ECR above 'D' mandatory

for Rs.10 cr & above

15% of WC

Max 20 Crores3 Months

If availed SME Credit Plus no SLC - Export orders - WC funds at short

notice in times of urgent need. EM to be extended - Sufficient DP to

be available - Can be availed any no. of times in a year.

SBI SHOPPEDISCONTINUED

SCHOOL PLUS DISCONTINUED

CONSTRUCTION

EQPT LOAN

Term loan for funding of purchase

of new Construction Equipments

Margin :

10%/15% -

With Coll./No

Collaterals

Min - 25 Lacs;

Max - 10 Crs.Not to exceed 5 years.

1. Minimum of CRA SB-9 & above, Min CIBIL 680

2. Profit in last financial year, Gross DSCR > 1.25%

3. Satisfactory track record with no SMA/NPA.

4. Pricing based on CRA rating. Min Collaterals : 25%

DAL MILL PLUSLoan as T/L, CC, LC, BG, Credit

Plus

T/L: 15-25%,

WC Stocks -

15-20%, Book

Debts-25-40%

Not specified

5-7 Yrs, excluding

gestation period of

1 year

Loan upto 50 Lacs - No Collateral - obtain CGTMSE Cover,

50 L-1 Cr : only if Guarantee fee to be borne by borrower.

Without CGTMSE - 75% collateral to be insisted.

SME OPEN TERM

LOAN

Scheme for CRA upto SB 6 only,

ECR - BBB and above10% Max 2.5 Crore

Max 3 Years,

5 yrs-On selective basis Limits to be utilized within 12 months of sanction

PRADHAN MANTRI

MUDRA YOJNA

TARUN : 5,00,001 to Rs. 10 lacs,

Daily Cash/POS withdrawal limit : 20,000/30,000

Accounts are guaranteed by CGFMU.

Standup India

Scheme

Objective : To facilitate loans to

atleast One SC, 1 ST or One

Women borrower per branch.

10% to 25%Min: 10 lacs,

Maximum: 1 Crore

CTL - 7 years incl.

moratorium of 18

months

Greenfield enterprises may be in manufacturing, services or trading

sector. SIDBI to maintain web-portal, NABARD will take care of the

training, LDMs to serve as contact points for SIDBI, NABARD & Banks,

Guarantee cover available from

Credit Guarantee Scheme for Standup India (CGSSI).

Covers Non-Farm activities in Manufacturing,

Trading & Services with credit limit upto Rs.10 lacs

under SME and RBU.

SHISHU : Upto 50,000, Daily Cash/POS

withdrawal limit : 10,000/15,000

KISHORE : 50,001 to Rs. 5 lakhs,

Daily Cash/POS limit : 15,000/25,000


SME PRODUCTS


ABL

Min > 10 Lac,

Max: 20 Crores,

Repayment : 12 M to

180 M.

ABL-CRE-CP

(Commercial

Project)

Drop-line Overdraft facility -

Proprietorship/Partnership/

CompanyLTV - 50%

Min > 10 Lac, Max: 50

Cr Repayment : 12 M

to 72 M

Electronic Dealer

Finance Scheme

(e-DFS)

Financing of inventory purchases

of the Dealers - 24 x7 MIS

Support,

No cheque book

100% financing

of invoices -

NIL Margin

SCFU operations -

Nodal Br. - SME

Shivsagar Estate

Branch, Mumbai

Comfort Letter to be

issued by Industry Major

to its Dealer

1. Bipartite agreement to be signed by IM & our Bank

2. Electronic mode of transactions reduces branch visit by dealers -

Cheapest rate of interest

3. Flexible Collateral terms - 25% in the form of TDR/EM

General Purpose

Term Loans for SSIs

For all general commerical

purposes such as capital

expenditure, R&D, repaying high

cost debits, shoring up of NWC,

etc.

25%

Maximum : 50 lacs,

Minimum Loan

preferred - 25 lacs

and above

3 years - Can be

extended to 5 yrs in

deserving cases

1. Minimum Gross DSCR of 1.75

2. TOL/TNW not be ordinarily exceed 3

3. Total Long Term Liabilities to equity not to exceed 2:1

4. Current Ratio not to be less than 1

5. Minimum CRA of SB7 and above

6. Should have earned pretax Profits for 3 proceeding yrs

Revised General

Credit Card

To increase flow of credit to

individuals for entrepreneurial

activity in the non-farm sector

20%

WC/TL - Smart

Card/Debit Card to be

issued.

Maximum - 5 lacs

Valid for 3 years, subject

to annual review

Assessment as per SME Credit Card Scheme - Prof & SE : 50% of

Gross Income, SSI/Traders : 20% of Projected Annual Turnover. TIN

No./Service Tax Registration No. to be obtained and Sales to be

verified with VAT & Service Tax returns, wherever applicable.

Artisan Credit Card

For working capital requirements

as well as cost of tools &

equipments required for

manufacturing process

Upto 25000-

NIL

25000-2 Lacs-

20%

CC - Max 2 lacsValid for 3 years, subject

to annual review

Assessment by Nayak Committee norms and will be based on

simplified scoring model. Minimum Score: 60%

Weaver Credit

Card

By way of Term Loan

and Cash Credit -

Max 2 lacs

CC valid for 3 years,

subject to annual

review. TL - 3

years

Minimum Marks 60% as per Scoring Model. Loan is provided @ 6%.

Margin money assistance @ 20% of the project cost subject to

maximum of Rs.10,000/- available. Loans guaranteed under CGTMSE

to the tune of 85%. Cir Ref: NBG/SMEBU-Weaver/CRE/85/2013-14

dtd 13/3/14

DISCONTINUED SCHEMES : TRANSPORT PLUS, RENT PLUS, RICE MILL PLUS, PARYATAN PLUS, SBI SHOPPE, SBI SHOPPE PLUS, SCHOOL PLUS, TRADERS EASY LOAN, STREE

SHAKTI, SBI SMILE.

for TIER I - Rs. 50 Cr, Tier II & III - Rs.20 Cr, Tier IV, V, VI - Rs.5 Crores

LTV% - 50% of Realisable Value of property

LTV % - 50% of Realisable Value of property, SARFAESI Complaint exclusive property, Property to be

within 25 km radius from the branch, 2 TIRs for loans above Rs.25 lacs, Half-yearly Inspection, CRA to be

done but not related to Pricing, Renewal not applicable - Only Yearly Review, Borrower to submit Cash

Flow Statement for the entire tenor initially itself and annually therafter during review. Valuation of

Property: Once in 3 years.

Drop-line Overdraft facility - Units engaged in

manufacturing and services activities along with

self-employed & professional individuals covered

by MSMED Act 2006, wholesale/ retail trade.

Working capital requirements for purchase of tools

& equipments required for carrying out weaving

activity. Possession of Photo ID Card issued by

Development Commissioner (Handlooms) or the

State Govt. is a necessary pre-condition for availing

the scheme.


SME PRODUCTS

Liability Product MIN BALANCE

POWER JYOTI 50000/- (MAB)

1. A product to provide fee collection for institute, colleges 2.

Cheque book not provided and No Overdraft permitted,3. Txn other

than fee collection not permitted at Non home branch, 4. In single

challan- Max 10 types of fees can be collected (Challan in 3 parts)

POWER BASE 20000/- (QAB)

POWER GAIN 2 LACS (MAB)

POWER PACK 5 LACS (MAB)

POWER POS MAB - Rs. 5000

SME Sahaj QAB - Rs.1000

Normal CA MAB 10,000/-

Surabhi MAB 10,000/-

Account may be opened with ZERO balance. Non-maintenance of MAB - Rs.500/-, Closing A/c after 14 days - 1000/- + ST, DD/BC/IOI -

At par, Outstation cheque collection - 50% of normal card rates - Cash handling charges : free upto Rs.25,000/- . Duplicate Statements -

Chargeable, Standing Instructions - Free. POS-OD - 25% of last 6 months transactions, Min Loan : Rs. 25000/-, Max : Rs. 5 lacs (e-Cir

No. NBG/TBU-LTP/4/2016 - 17 dated 9/8/2016)

PENALTY : Non maintaining QAB - 300/-, To provide basic banking facility to the low profile business community - Drawings per cheque

and also in ATMs is limited to Rs.15,000/- The account holder is permitted to remit Cash to the extent of Rs.10,000/- on any one

working day.

Penalty : Rs.500/- + ST for not maintaining MAB.

Penalty : Rs.500/- + ST for not maintaining MAB. Period : 1-3 yrs, Threshold limit : Rs. 1 lac, Initial Deposit : Rs. 1 lac and in multiples of

Rs.10,000/-, No loan facility available.

FEATURES/REMARKS

Penalty for non maintaining MAB Rs.1000/- + ST

PENALTY: Non maintaining QAB - 3000/-, Closing A/c within 12 months- 750/-, RTGS/NEFT-Normal, DD-2/1000

PENALTY: Non maintaining MAB - 1500/- + ST, Closing A/c after 14 days - 1000/- + ST, RTGS/NEFT-Free, DD-1/1000

PENALTY: Non maintaining MAB - 2500/- + ST, Closing A/c after 14 days - 1000/- + ST, RTGS/NEFT/DD/BC -Free


SME – MCQs – SBLC, Tiruchirapalli 1

SME – MCQs

1. Min. Loan under SME Smart Score is Rs……. Lacs A 0.25 B 0.50 C 1.00 D 5.00 2. ABL Limit is to renewed at ………. A Yearly B Once in two years C Once in three years D No renewal 3. Facility wise Rating is applicable for …….. A Simplified Model Up to Rs.5.00 Crores B Simplified Model above Rs.5.00 Crores C Regular Model Up to Rs.5.00 Crores D Regular Model above Rs.5.00 Crores 4. Max. amount of SME Credit Plus limit is Rs…….. lacs A 25 B 50 C 100 D 500 5. Max. Loan under SME Smart Score for Trade and Services Sector is Rs……. Lacs A 25.00 B 50.00 C 100.00 D 500.00 6. Min. Loan under Doctor Plus Scheme is Rs……. Lacs A 5.00 B 25.00 C 50.00 D 10.00 7. SME Smart Score Cash Credit limit is valid for …….Years A 1 B 2 C 3 D 5 8. SME Credit Card Cash Credit limit is valid for ……year/s A 1 B 2 C 3 D 5 9. Max. Term Loan under SME Credit Card is Rs. ….. lacs A 5 B 10 C 25 D 50 10. As per MSMED Act 2006, A Small Service Enterprise is one where the investment in equipments is A 25 lacs to 5.00 Crore B 10 lacs to 2.00 Crore C 5.00 crore to 10 Crores D 2.00 Crore to 5.00 Crore 11. MCLR Means : A. Marginal Cost of Lending Rate B. Migration to Cost of Lending Rate C Marginal Cost of funds based Lending Rate D. Marginal Cost of Liquidity Return 12. QAB for SME Sahaj Current Account is Rs…….. A 1000 B 10000 C 5000 D 500 13. Max. drawing per cheque is limited to Rs…….. to SME Sahaj C.A. holder A 10000 B 15000 C 50000 D 5000 14. The period fixed deposit under Surabhi is …………….. A 7 days to 10 years B 1 year to 3 years C 1 year to 5 years D 1 year to 10 years 15. Age of Chief promoter / Chief executive in SME Smart Score should be between A 18 and 60 years B 21 and 65 years C 18 and 65 years D 21 and 60 years


16. SME‐3: A Hypothecation Deed B Guarantee Deed C Mortgage Deed D Revival letter 17. Under SME CREDIT PLUS Each amount of withdrawal should be repaid in A 2 months B 3 months C 6 months D 1 month 18. Maximum quantum of finance obtained for Manufacturing under SME Smart Score scheme is A Rs.5 lacs B Rs.10 lacs C Rs.25 lacs D Rs.50 lacs 19. Under Asset Backed Loan the amount of finance is limited to___% of value of property A 45.00% B 50.00% C 60.00% D 100.00% 20. What is the required MAB for SME POWERPACK? A Rs. 10,000/‐ B Rs. 1,00,000/‐ C Rs. 5,00,000/‐ D No such requirement 21. The maximum repayment period under Doctor Plus Scheme for buying equipment & expansion/renovation is ______years A 7 B 8 C 9 D 10 22. In case a SSI unit intends to avail credit facility under SME Credit Card Scheme, what type of collateral security will be taken by the bank? A Equitable Mortgage B Regd. Mortgage C Third Party Guarantee D Not to be insisted upon 23. Car Loan To SME Units can be sanctioned to an individual promoter when he has a net annual income of ‐‐‐‐ & above as per last IT return. A Rs. 5 lacs B Rs. 3 lacs C Rs. 4 lacs D Rs. 2 lacs 24. Penalty for non‐maintenance MAB (exclusive of ST) in Power Gain current account is A Rs.5000/‐ B Rs.2500/‐ C Rs.1500/‐ D Rs.500/‐ 25. Drop‐line Overdraft Limits may be sanctioned under “SBI Asset Backed Loan‐CRE” for period of 12 months to …..................... with either Equated Reduction in limit or customized reduction in limit depending upon the cash accruals. A 60 months B 84 months C 72 months D 180 months 26. What is the maximum loan ceiling under SME car loan for Old vehicles? A Rs.15 lacs B Rs.50 lacs C Rs.30 lacs D No upper ceiling 27. What is the form to be obtained with regard to confirmation of EM under SME documentation? A SME 4 B SME 6 C SME 7 D SME 8 28. What is the maximum loan that can be given for Non‐Allopathic Doctors under Doctor Plus Scheme? A Rs.10 Crores B Rs.5 Crores C Rs. 10 lacs D We cannot give loans to Non‐Allopathic Doctors. 29. What is the required MAB for SME POWER POS? A Rs. 10,000/‐ B Rs. 1,00,000/‐ C Rs. 5,000/‐ D It is a Zero Balance Facility


30. The investment in Plant and Machinery shall not exceed Rs. ____ to be classified as a Micro (Manufacturing) enterprise A Rs.2 Crores B Rs. 25 lacs C Rs. 10 lacs D None of these 31. What is the Periodicity of Inspection for ABL ? A Yearly Once B Half Yearly C Only Presanction Inspection D Only Post‐sanction inspection 32. Nayak Committee Method is applicable for Working Capital limits upto ? A 25% of Annual Turnover B 1 Crore C 20% of Annual Turnover D 5 Crores 33. A Branch can issue a bank guarantee for a maximum period of A 18 months B Upto 10 years with the permission of Controlling Authority C Beyond 10 years with 100% margin D Beyond 10 years with 100% margin with the permission of Controlling Authority 34. As per Loan Policy Guidelines, the maximum tenor of a Term Loan will be A 8 years B 10 years C It can exceed the maximum tenor in case of HTLs, Education Loans, Agricultural Loans, etc. D b & c E a & c 35. What is the repayment period for a loan sanctioned under OLD SME Car Loan Scheme. The Age of the Car at the time of sanction is 3 years : A 4 years B 5 years C 7 years D None of these 36. Which is not applicable under SME CREDIT CARD Scheme ? A Minimum Score – 60% (36 out of 60) B Stock Statement to be obtained yearly on 28th Feb C Submission of Audited Balance Sheet is Waived D None of these 37. Under SME Credit Plus, advance is granted to a SSI unit upto ___ % the aggregate limits, sanctioned to it : A 10% B 15% C 20% D 25% 38. What is the minimum loan amount that can be given in Asset Backed Loan ? A > Rs. 10.00 lacs B Rs. 10.00 Crores C Rs. 20.00 Crores D Rs. 50.00 Crores 39. In which scheme our Bank has stipulated that the account should be recalled if there is an irregularity of more than 3 months : A Asset Backed Loan B Doctor Plus C Lease Rental Discounting Scheme D ABL‐CRE 40. Under priority sector, banks should not charge penal interest for loans up to A Rs. 20,000 B Rs. 25,000 C Rs. 10,000 D Rs. 50,000 41. Under SBI eDFS, the borrower/dealer will have the following advantages : A Low Interest Rates B 100% financing of Invoices C Flexible Collateral terms D All of the above


42. Under SBI eDFS, the branches has to advise the dealer details to _____ branch/office, for mapping the Dealer to the Industry Major : A SME Ambattur Industrial Estate Branch, Chennai B SMEBU Department, LHO, Chennai C Supply Chain Finance Unit (SCFU), Corporate Centre D SME Shivsagar Estate, Worli Branch, Mumbai 43. SME‐1, is obtained for A Letter of Arrangement B Agreement of Loan Cum Hypothecation C Guarantee Agreement D Link Letter 44. What is the TIME NORMS fixed by our Bank for sanction of Loans upto Rs.25,000/‐ under SME/Small borrowers, etc. from the date of receipt of application in complete set : A 2 weeks B 4 weeks C 6 weeks D 8 weeks 45. Which of the following is Correct with respect to sanction of Doctor Plus Scheme? A Medium Term Loan B Overdraft. C Demand Loan. D Medium Term Loan/Cash Credit/Demand Loan/O.D. 46. What is the hurdle rate under New CRA‐2010? A SB‐ 5 B SB‐ 7 C SB‐ 10 D SB‐ 16 47. SME‐2, is obtained for, A Agreement of Loan Cum Hypothecation. B Letter of Arrangement C Link Letter D Guarantee Agreement 48. Under SME Documentation, Letter of Arrangement has to be stamped as an agreement A True B False C Depends upon the State where the document is executed D Need not be stamped 49. The minimum DSCR stipulated for loans under Doctor Plus is ________. A 1:1 B 1.15 C 1.33 D 1.50 50. FFR‐I (Financial Followup Report‐I) needs to be submitted by the borrower ………....... A Within 52 days from the close of a quarter B Within 67 days from the close of a quarter C Within 52 days from the close of half‐year D Within 67 days from the close of half‐year

ANSWERS 1 11 21 31 41 2 12 22 32 42 3 13 23 33 43 4 14 24 34 44 5 15 25 35 45 6 16 26 36 46 7 17 27 37 47 8 18 28 38 48 9 19 29 39 49 10 20 30 40 50

RATIONALES 1. Bank is paying greater attention on making P-segment advances. 2. ATM cum Debit will not be issued in Max gain Account. 3. We should not grant advance against TDR's issued by other Banks 4. Why LTV Ratio for P-Segment loans? 5. A D.P note is obtained from the borrower in addition to the ornaments pledge to the bank. 6. When an LIC policy is reassigned after the advance has been repaid, the policy holder is advised to do the fresh assignment or nomination. 7. PAN card of student / parent is mandatory for all Educational Loans. 8. Aadhaar based e-KYC Services has been made live in the Bank 9. Electronic Dealer Finance System (eDFS) 10. SBI encourages Merchant Acquiring Business-POS 11. Cash withdrawal at SBI Point-of-Sale 12. Bank has introduced a Nomination drive. 13. Nominees signature is not obtained by the Bank on the nomination form. 14. Branch Manager should scrutinize staff accounts at periodical intervals 15. Even though a Contract with a Minor is void abinitio, Banks open savings bank account in the name of the minor. 16. Post Dated cheques are not paid by Banks.

17. TDR deposit are not transferable by endorsement whereas draft are transferable by endorsement.

18. Partnership letter (COS 37) is obtained from partnership concern when an account is opened.

19. Agri Gold loan encouraged at rural branches. 20. New Scheme named Stree Sakti Tractor Loan introduced. 21. Produce Marketing Loan is given to Farmers.

22. Scoring model for Tractor Finance introduced.

23. Dr/ Cr summations in CC account should be verified when account is renewed.

24. Fresh AB1 need not obtained at the time of renewal and only revival letters are to be obtain once in 3 years. 25. A contract with a minor is void. But the bank encourages opening of SB/TD account in the name of minors 26. The payee of a cheque cannot stop payment of a cheque. 27. Changing a bearer cheque into an order cheque does not require drawer’s signature (but the reverse is not true) 28. Bank can’t stop the payment of draft 29. Payment of a cheque outside business hours is not made to any person other than the drawer 30. Overdraft is granted against LlC policy, shares etc. but not a Demand Loan 31. A cheque payable to a firm may not be accepted for credit to the private account of apartner without consent of the other partners. Why? 32. Bank is making thrust on CASA deposits 33. RBI has allowed banks to purchase/sell NPAs

34. A non-profit making association can’t be a partnership firm 35. Preventive Vigilance committee meetings have to be conducted at branches. 36. Financial transactions should not be put through by the branches based on email request of NRI/ domestic customers. 37. Margin is stipulated for advance against Stocks/ Assets charged to the Bank. 38. Equitable Mortgages have to be registered with CERSAI. 39. Moratorium period is given for repayment of Term Loans. 40. Merchant establishments prefer cards to cash for payment. 41. Staff accounts must be scrutinized periodically by BM. 42. New Scheme : Assured Car Loan introduced. 43. New Scheme : Car Loan Lite introduced. 44. Need for Credit Scoring Model in P Seg Advances

******

SOLUTIONS ‐ RATIONALES

1. P-Segment is Thrust area identified by the Bank. Excellent scope due to high middle class population. Competitive need. When credit off take is low in other segments. 2. Max gain is housing loan as an overdraft facility. Debit to this account only once at the time of disbursement. If ATM card is issued there are chances of debit transactions at the instance of borrower. 3. Other Banks may refuse to note lien in their books in our favour. Moreover issuing Bank has a first and paramount Lien on it and may exercise the right of set-off also. 4. In order to increase safety margin for the bank. To minimize loss due to default and prevent slippages. 5. If sale proceeds of the ornaments pledge to the bank are inadequate to cover the entire outstanding in the account, we can sue the borrower for recovery of the shortfall on the strength of the DP. Note. 6. As per Section 38 of Insurance Act, a nomination made before any assignment is cancelled in favour of nominee by an assignment of the policy. Hence customer is advised to make a fresh nomination. 7. To mitigate the difficulties faced by operating staff in contacting the borrower after completion of studies and rising NPA in Education Loans. To facilitate follow up and to track the borrower easily. 8. To provide better customer service. To avoid the risk of fraud. To avoid duplication of customers.

9. An application that aims to automate the loan disbursal and interest recovery process. It provides a repayment model through the Internet banking and other channel system. The application is customizable for all customers who require a Dealer Discount Scheme and enjoy dealer financing limits with SBI. 10. The facility of making payments through Cards encourages your customers to spend more as they are not constrained by cash on hand, resulting in Customer Stickiness and Increased Sales volume. By accepting payment through cards, sale proceeds are credited electronically to merchant account as per the agreed transaction cycle, thereby providing Better Cash Management and Speedy Payment. Lower volumes of cash reduce vulnerability to theft and minimize counterfeit notes. 11. To allow more cash points and for greater customer convenience. Penetrating into the customers heartland, providing service near to their doorstep. POS terminals can perform the cash dispensation function it will reduce queues at the ATMs /Branches.

12. Create awareness among the customers by communicating & encouraging them to opt for nomination facility & prevent legal issues as well as reduction in cases of unclaimed deposits in future. To avoid reduction in our deposit base and check flows to the Unclaimed Deposit- Depositor Education & Awareness Fund Scheme (DEAF) of Reserve Bank of India. For hassle free settlement of claim of deceased account 13. Nomination can be changed by the depositors during the currency of the deposits. To meet the confidentiality requirement from the depositors. Nominee is not a party to the contract for opening of an account, his signature is need not required. 14. To ensure that the inflow of monies, spending and life style of staff members is of usual nature commensurate with the know source of income. As measure of preventive vigilance. A tool to reduce frauds by insiders.

15. As per Section 11 of the Indian Contract Act 1872, contract with a Minor is void. However, as per Section 26 of Negotiable Instruments Acts 1881, Minor can draw, endorse, negotiate and deliver a negotiable instrument so as to bind all parties except himself. Banker gets a valid discharge on the cheque, hence deposit accounts are opened, but no overdraft is sanctioned.

16. Payment of a post-dated cheque cannot be considered as payment in due course as per Section 10 of Negotiable Instrument Act and hence, protection will not be available under Section 85. Further, if some other cheque is returned for wants of funds, Bank may be held liable for wrongful dishonour of cheque.

17. TDR is receipt and not a negotiable instrument. The interest on TDR can be transferred by assignment and notice. Draft is a negotiable instrument and such title can be transferred by endorsement and delivery

18. It restricts the implied authority and obligation on the part of partners that any change in the partnership is to be informed to the Bank. This also makes all the partners liable jointly and severally.

19. NPA level in this product has been very low. RBI has also reduced the risk weightage on loans upto Rs. 1 lac against gold and silver ornaments from 125% to 50% for capital adequacy.

20. Women are included as co-borrower to reduce the risk of loan turning to NPA as the higher margin or collateral security in the form of gold/NSC/ TD etc. are taken. To tap the market of tractor loan and book good business.

21. To provide the farmer liquidity. It enables the farmer to avoid distress sale of their firm produce at the time of harvest.

22. It has provision for differential margin, security, interest etc. and hence good borrower can be attracted. To reduce the risk of slippage of account to NPA.

23. To understand the extent of utilization of limits. To arrive at the exact limit required which should be appropriate with the level of activity taking place in the unit. To ensure that the limit is not utilized for any other purpose.

24. AB1, assessment contains suitable continuity clause so that credit balance or nil balance in the loan account will not necessitate obtention of fresh documents. Personal liability clause in AB1 is terms of limitation act necessitate obtention of revival letter once in 3 years. 25. To encourage the habit of thrift in them. As per Sec 26 of NI Act, minor can bind others except himself; he can draw, deliver etc., A minor can give valid discharge and Bank incurs no liability as long as the account is in credit. 26. The banker is bound to follow the instruction of the drawer only. There is no privity contract between the Bank and the payee 27. As per NI Act, changing bearer into order is not a material alteration and hence drawer’s authentication is not required

28. Once a draft issued by the Bank is delivered to the payee it becomes a Trustee for the payee for the draft amount. Further, the bank draft carries a promise of the Bank that it would pay “payee” or “order” a sum of money for value received and third parties might have got title to the draft by negotiation. The bank has already received the value for the draft.

29. Under Sec.85 of the NI Act, it does not constitute a payment in due course. In the event of death, bankruptcy, lunacy of the drawer or if payment is countermanded by him, the bank will not be entitled to debit his account. 30. LIC policy, shares are not authorised securities and can only be assigned in favour of the Bank as per Sec 33 of SBI Act. These are "actionable claims". Further debits to pay premia, warrant an overdraft only as no further debits are permissible in a demand loan account. 31. The failure to query the circumstances under which the property of principal is credited to the account of an agent amounts to negligence. The Banker would held liable for "Conversion" under Sec.131 of NI Act

32. CASA Deposits comprising current and savings bank accounts are low-cost deposits and giving higher profits for the Bank due to high spreads. Interest rates on savings bank account are not subject to wide variations as in the case of term deposits. Further SB/CA with small balance are relatively stable. 33. To create a secondary market for dealing in NPAs by banks and FIs To generate cash flow for recycling them. To cleanse the balance sheet of banks. 34. Sec.4 of Indian Partnership Act defines as the relationship between persons, who have agreed to share the profits of a business carried on by all or any one of them acting for all. Profit is the essential purpose of a partnership. Hence, a non-profit making association can’t be a partnership firm. 35. It is important that greater awareness is brought about among staff to maintain vigil to avoid mal practices, frauds. PVC Meetings are to be conducted at branches to ensure that the Banking operations are carried on smoothly by observing the laid down systems and procedures for the soundness and safety of banks.

36. A number of frauds have been unearthed as miscreants who stole the email id/password etc have been able to send fake mails to the Bank, the Bank has been put to loss. Hence, as a measure of preventive Vigilance, no financial transactions would be initiated based on emails received from customers.

37. Ensures Borrower’s stake in the project. Margin is a cushion against deterioration in value and obsolescence of stocks. If margin is stipulated the bank’s advance would not be covered by market value in case of decrease in price.

38. To create a common registry wherein details of all mortgages by deposit of title deeds and other data regarding secured transaction. The prospective lenders can verify whether any charge has been created on the property already.

39. Unit requires adequate time for acquisition of land, construction of premises, erection of machinery and trial production. It will work above the Break Even Level only when it achieves commercial production. Unit requires generally 12 to 24 months for achieving commercial level of operations. At this level only, it can generate income for the repayment of loans.

40. Merchant establishment can obtain prompt reimbursement from the bank. Cards induce spot purchases thereby increasing sales leading to higher profits. MEs are entitled to commission from the card issuers. Unproductive Cash handling work associated with risks can be avoided.

41. It is an effective preventive vigilance measure which prevents occurrence of malpractices and frauds. To ensure that the credits in staff accounts are not disproportionate to the sources of income.

42. Assured Car Loan is available for customers who are not in a position to provide income proof but having fixed deposits with our Bank. In view of marking of lien on FDs, there will be no incidence of account turning into NPA.

43. Car Loan Lite is introduced in order to tap the quality business available in Business Segment/Professionals/Agriculturists with sufficient income but no income proof. This will be enable the Bank to meet the raising demand of cars in Rural and Semi-Urban areas.

44. To source quality proposals and to improve the Turn Around Time (TAT), Credit Scoring Model has been introduced in P Segment. Right Pricing of the product can be made with the help of Credit Scores which will attract more customers to our fold.

********

SITUATIONAL ANALYSIS

Situation 1.

A cheque issued by Mr. Amitabh is presented to you on 24/3/2018 and paid. The

cheque is dated 11/3/2018. On 25-3-2018, Mrs. Amitabh comes to the Branch and

gives a letter stating that Mr. Amitabh died on 7-3-2018 and demands restoration of

the amount of the cheque

Situation 2.

Your bank as a secured creditor of a manufacturing unit has issued 60 days notice to

the borrower (under SARFAESI Act 2002) who has defaulted in repayment. The

borrower has failed to discharge his liability within the period specified. In such a

situation what are the measures a Secured creditor may take recourse to recover his

dues?

Situation 3.

Mrs. Poonam , a NRI customer from Canada has several term deposits (Rs.1.35

crores) with your branch. She wishes to nominate her three children for these

deposits. Two of her sons are in UK and the third son (aged 14) in studying in Doon

school in India.

Situation 4

Shri Kailash Kumar Agarwal, is a very long standing customer of your Branch. He is

maintaining various accounts with you and is a valued customer. You have received

a cheque from your Delhi Branch issued by Shri Kailash Kumar Agarwal. Balance in

the account is insufficient. The customer requests you to detain the cheque for 2

days. He assures you payment within the said period. What course of action will you

adopt?

Situation 5

Sushant is a Branch Manager of a Rural Branch in Kurnool District of Andhra Pradesh. The area is inundated by floods recently. There was a heavy downpour on Sunday night and on Monday morning, when Sushant reached his Branch he found that the room where safe custody articles were kept, was badly damaged because of a fall of very big tree on the building. And with the resultant leakage all the packets got wet. Sushant apprehended that the contents in the packets may have been damaged. He immediately served notices and got the similar announcements made through beat of drum and other devices in use. Dharma Reddy, a person deposited some packets came to Sushant after one week and found that his papers were apparently badly damaged. Sushant explained him the measures taken by the Branch and enquired what he was doing for the last one week. Dharma Reddy said the he was away on business work at Hyderabad and was unable to come back due to bad weather conditions. He was vey furious on the state of the documents and claims Rs. 3.00 Lacs as compensation for the loss stating Bank has failed to take care of his articles in safe Custody. He is contending that the Bank has failed to take reasonable precautions to protect the safety of the articles kept in its custody. Discuss.

Situation 6

Mr. Ajay and Mr.Vijay raise a loan of Rs. 2,00,000/- (Rupees Two Lacs), from your MG Road Branch, which they fail to repay despite vigorous follow up from the Bank. Between them they had the following credit balances in the following accounts, which the Bank want to appropriate towards the above irregular loan accounts :

Sr. No. Name of the Nature of Balance Account Holders Account 1. Mr. Ajay S B A/c Single Rs. 34,000/- 2. Mr. Ajay & Mrs. Sandhya Ajay SB A/c Joint Rs. 65,000/-

(wife of Ajay) 3. Mr. Vijay SB A/c Rs. 45,000/- (As Father and Natural Guardian of Master Amar, (Mr. Vijay’s son))

4. Mr. Vijay SB A/c Single Rs. 19,000/- (Maintained at RP Road Branch of your Bank) From which accounts you will appropriate the amount due.

Situation 7

Your Bank has granted advance against pledge of medicines to M/s New Bio Pharma, a pharmaceutical manufacturing company. The company is not maintaining financial discipline. Bank served notice to company to take delivery of certain medicines held under pledge with the Bank which were going to expire, by paying back the amount of money drawn against the same. M/s New Bio Pharma kept on assuring the Bank that it is taking steps to repay and obtain release of the goods. In the mean time the expiry date of medicines matured. Company has raised a dispute and insists that the Bank, as Pawnee of goods / medicines (responsible for taking due and ordinary care thereof) should compensate the company for loss. What is the liability of the Bank?

Situation 8

A telephone call is received from a local departmental store informing that someone purporting to be your customer Mr. Alex wants to purchase goods worth Rs.10000/- from the shop and has offered to make payment through cheque. You are asked to confirm that the cheque when presented at the branch will be paid. Mr. Alex is a valued customer and always maintains a very healthy balance in his account. How will you respond in this situation.

Situation 9

You receive oral complaints from quite a few customers that only 99 note pieces are found in RS.10/- and RS.20/- denomination notes. Since this has been noticed after breaking the packets and as such they were forced to be on the defensive.Is it necessary to deal with these oral complaints and if so,how ?

Situation 10

What actions you will take in case a locker is not operated for more than a year even if the rent is paid regularly and the locker hirer is classified under High Risk category? Have you acted differently in case the locker hirer would have been classified under Medium Risk?

Situation 1

When Mr. Amitabh died on 07-03-2018, the Bank should have been informed immediately of his death in writing. Here it is immaterial whether the cheque had a date prior to the death of Mr Amitabh or not. A drawer can always issue a post-dated cheque if his intention is that the cheque should be paid only on or after a particular date. When the banker paid the cheque on 24-3-2018, he had no knowledge that Mr. Amitabh had died. Hence the banker gets a valid discharge as long as he has made payment in due course. The request of Mrs. Amitabh cannot therefore be acceded to.

Situation 2

After expiry of the notice period, bank will take the possession of the securities charged with the bank and after giving the 30 days public notice, move to sell the securities through auction.

In case of movable security, bank will after taking the possession will make the inventory and panchnama and thereafter sell the goods. However, in case of immovable Property bank will conduct the auction after expiry of public notice period and confirm the sale in favour of the highest bidder. For participating in the bid, party will have to deposit 25% and remaining amount will have to be paid within 15 days after confirmation of the sale by the secured creditor (bank). Alternatively, bank can do securitization of the loan and sell the same to the securitization company.

Situation 3

Mrs. Poonam is advised that nomination can be made in different term deposit accounts but there can only one nominee in each account. In case of the third son (aged 14 years) nomination can be made under guardianship or there shall be one major person who will sign on behalf of minor.

* Nomination is permitted in NRE term deposits. * NRIs can also be nominated (Two sons are NRIs.) * As per Sec. 45ZA of Banking Regulation Act, there can be only one nominee in one a/c. In case of minor being nominee, another major person will be appointed on behalf of minor.

Situation 4

Cheque, by virtue of its definition under section 6 of Negotiable Instrument Act, 1881, is payable, not otherwise, on demand. A demand bill cannot be detained. In law, the Bank cannot accede to the request of the drawer for detaining the cheque for 2 days and it has no option but to return the cheque unpaid with remarks “insufficient funds”. However, the customer being important, the Bank may take a view to pay the cheque provided it is sure of the payment, by extending an overdraft facility.

Situation 5

In this case, Bank being bailee, was liable to take care of the goods as a man of ordinary prudence will take under similar circumstances of same bulk, quality and value as per Section 151 of the Indian Contract Act, 1872. As Bank Served notices and got the similar announcements made through beat of drum and other devices in use and the fact the loss was befell due to natural calamity, Mr. Sushant appears to have taken due care as a man of ordinary prudence would do. Hence the Bank is not liable. Further, if Dharma Reddy insists for compensation through legal Channels, it may be brought to court’s notice that the room where all such items were kept was examined at the first opportunity available. All the packets got wet due to circumstances beyond the control of Bank.

Situation 6

The Bank has an option to use a Right of set-off in case of first account which is in Ajay’s name. The amount in Ajay’s account can be appropriated as he is jointly and severally liable for the loan, provided the funds in the savings banks account are Mr. Ajay’s. In the case of second account, Bank cannot exercise the right of set-off, since the balances lying in the joint account is not in the same right as the loan account. In the case of 3rd account the Bank cannot exercise a right of set-off as an account in the name of a person in his capacity as a guardian for a minor is not to be treated in the same right as his own account with the Banker. In the case of 4th account, for the purpose of exercising of right of set-off the Bank is considered as one unit rather than the Branch. Hence when the funds are available in the same right the Bank can exercise its right.

Situation 7

The Bank in this case has informed the Pawner about the expiry of medicines and has thus taken due care of medicines as required under Section 151 of the Contract Act 1872. On the other hand Debtor Company has failed to maintain financial discipline. Section 152 of the Contract Act 1872 stipulates that the bailee, in the absence of any special contract, is not responsible for the loss, destruction or deterioration of the thing bailed, if he has taken the amount care of it described in Section 151. Hence Bank is not liable and will be protected under Sec. 152.

Situation 8

The bank has to act very carefully to avoid any breach of obligation to maintain secrecy of customer’s account. Further Mr. Alex is a valued customer of the bank. As such we shall talk to him and appraise of the position informing our inability to accede to the request of the proprietor of departmental store for disclosure of the information. This will help guard against a possible loss or complications for the account holder as also the bank. We will express our inability to accede the request of the departmental store. In case of doubt as to the genuineness of the cheque or such requests bank has to protect the interests of the drawer of the cheque first and not the payee. Such refusal for acceding to the request of the payee is within rights of a banker.

Situation 9

Complaints whether oral or written must be looked into immediately with all seriousness. If no corrective measures are initiated, it could assume wider proportions and is likely to cause damage to the image of the Bank and get adverse publicity among the customers and trading circles

Steps suggested are:

a. Ensure to display a notice stating that the customers must examine their cash before leaving the counter.

b. Instruct Cash Officer to supervise all operations of the Cash Deptt. thoroughly.

c. Arrange for recounting of notes of all denominations in the strong room to ensure that there is no shortage.

d. Arrange to carry out surprise check of packets

Situation 10

Where the locker has remained unoperated for more than 1 year for a higher risk category, following actions will be taken: i) Efforts will be made to immediately contact the locker hirer. He/she will be advised to either operate the locker or surrender it. ii) Locker hirer will be asked to give in writing, the reasons why he/she did not operate the locker for such a long period. iii) In case the locker hirer has some genuine reasons as in the case of NRIs or persons who are out of town due to a transferable job etc., branch may allow the locker hirer to continue with the locker. iv) In case the locker hirer does not respond nor operate the locker, branch should consider the opening of the locker after giving due notice to the locker hirer. In case of medium risk category customer, the above mentioned actions will be initiated if the locker has remained unoperated for more than 3 years.

Situation 1. 1. Your customer has complained that the bank has wrongly debited his account with Rs.10,000 on 25.6.2018. On scrutiny it was found that a) Rs.10,000/- was debited on 25.6.2018 on the strength of a cheque presented in clearing by another bank B. b) The cheque leaf belongs to the cheque book which was issued by your branch to a third person on production of a letter. c) The letter produced to the bank for obtaining cheque book bears forged signature of the account holder. d) Signatures on the cheque resemble the specimen on Bank's record, but your customer refuses to have issued the cheque. e) The beneficiary of the cheque with bank B has withdrawn the full amount and closed the account. The beneficiary and its introducer both are not traceable at the given address. Discuss:

Situation 2 Mr. Ramesh, Branch Manager of semi urban branch was surrounded by a lot of customers who were complaining about the delay in transacting time. The branch is situated in a busy place with the Agricultural Market Yard in the lane. Usually there is heavy rush through out the year in the banking hall and since the crop of Cotton and Chillies started arriving in the market, there is more rush at the branch. Farmers usually rush to the Branch Manager for arranging faster payments. There are more than 1300 pensioners drawing pension from the branch. All these are making the branch very congested and leading to frequent complaints. The problem intensifies in the first week of every month. People generally prefer to coming to the branch even though most of them have ATM cards. These huge crowds make your VIP customers wary of coming to the branch for their work. Ramesh is an enthusiastic officer who is recently confirmed and posted as BM for the first time. He is determined to rectify the position. How can he deal with these issues?

Situation 3. Q. Your customer Mr. Ramesh Kumar Jain has given a cheque for Rs.50,000 in favour of Y. He writes to the bank not to pay the cheque because he has intentionally signed as Ramesh Kumar Jain, whereas his specimen signature reads as "R.K.Jain". This letter was received by the bank after it has already paid the cheque. Shri Jain claims the amount from the bank on the plea that his signature on the cheque does not tally with the specimen on the Bank's record. Hence, the payment is wrong. Discuss:

Situation 4. At the end of the day, the receiving cashier at a sub-chest branch has reported excess cash of Rs. 50,000. The denominational details in the vouchers were verified and found correct. The amount was credited to Sundry Deposits A/c. When the branch manager was about to leave, the proprietor of Gopal & Brothers, one of the Bank's valued customers came to the branch and said that excess cash of Rs. 50,000/- has been remitted by his cashier into their account, while making a cash remittance of Rs.4,50,000/-. He also stated that he can show his cash book and other details to prove that excess cash of Rs. 50,000/- has been remitted into the account.

Situation 5. Shri. A, a retired Govt. officer, has a TDR of Rs. 3,00,000/- and a SB a/c at your branch for collection of pension. The account has been conducted satisfactorily. One day, his neighbour calls at the branch and informs you that Sri A has been admitted in a nursing home as he has suffered a heart-attack and has become unconscious; further, an expense of Rs. 20,000/- has been incurred towards emergency treatment. He also states that Mrs. A has gone to Los Angeles on a visit to her only son. The neighbour requests you to release Rs. 10,000/- to the nursing home immediately for further treatment. How will you act?

Situation 6 Banjara Hills Branch is located in a posh locality of Hyderabad. Branch has many NRI accounts of IT Professionals located across the globe. Branch got A+ Rating in 2 consecutive RFIAs. Mr. Kumar, BM is very happy that the branch is rated ‘the best’ in the recently concluded RFIA also. While checking e-mails on Monday morning, Mr. Kumar found an email from Mrs. Kalpana complaining about 10 unauthorised debits amounting to Rs.7.05 lakhs in her SB-NRE account. A copy of the email conversation was sent to the Controllers of the branch. Controllers initiated an investigation which revealed as follows: 1.Unauthorised debits were deducted in 12 NRI accounts which have huge balances where RINB is enabled. 2. 21 Pre-printed Kits reported missing in the recent RFIA report. 3. Branch compliance in RFIA ‘being traced’ without making concrete efforts to trace the missing PPKs 4. Thakur, Checker in INB interface re-issued all the twenty one PPKs without any request from the customers. Profile passwords and mobile numbers were changed for all the above customers. And this opened the gateway to unauthorized transactions. 5. He was aware of maker and checker login credentials for INB Branch Interface. Explain what are the lapses & how to prevent such frauds.

Solution 1.

It appears that the cheque book has been issued to a fraudster who has forged the signature of the customer and obtained it. The Bank is negligent in not verifying the signature on the letter. It appears, prima-facie, that the fraudster has forged the cheque of the customer. But, it is stated that the signature resembles the specimen, but the customer disowns it. The position in law is that if the signature is forged, however cleverly, the cheque is not a mandate of the customer. We have to satisfy ourselves whether the signature is genuine, by referring to a handwriting expert, if necessary. If we are satisfied that the signature is forged, we have to credit the amount to the customer's a/c without delay. As the fraudster has closed his account with B bank, our position is rather weak. Also, if the B bank had collected the cheque for an introduced customer in good faith and without negligence it would get collecting bank's protection. Yet, we have to file a criminal case of forgery and fraud.

Solution 2

1. Crowd Management in the first week would be given topmost priority. 2. Attention would be paid to seating and other arrangements ensuring that the crowd is

not blocking the entrance and movement of other customers in the banking hall. The HNI customers would be provided with separate seating place and counter for exclusivity and privacy for their transactions.

3. As a long term measure, identify the reasons of ATM Card holders not opting to use ATMs for withdrawals. This issue would be addressed by educating customers about the convenience factor in ATM and by demonstrating how easy it is to use an ATM Card. Sensitization programmes can be organised.

4. Confidence measure in customers would be undertaken by speeding up and attending to withdrawal related ATM complaints immediately. Further, the front line staff would be asked to persuade the customers to use GCC facility by installing GCC in all single window counters.

5. Organizing the staff meeting and explaining the benefits of educating customers about usage of ATM and other channels.

6. Implementation of CEEP initiatives in true spirit. 7. Popularising “No Queue app” of the bank among customers.

Solution 3.

The general proposition that a bank need not pay the cheques signed by the customer in a different mode than the specimen provided by him is well-established. The important question to be answered first is can the bank pay a cheque signed by the account holder in a different mode than the specimen furnished by him. The answer is 'yes' as it is a valid mandate to pay. In fact, in the instant case he has advised that he had signed as Ramesh Kumar Jain and not R.K.Jain, as provided in the specimen. Hence, there is no dispute that the signature has been put on the cheque by the customer. The cheque has been paid in due course and hence it is binding on the customer. He cannot now contend that the signature varies from that on record or that he intended the cheque to be returned. However, a disturbing question has to be answered by the branch. How such a cheque was paid? The cheque ought to have been returned with the reason "Signature differs". It is a dangerous practice to pay cheques signed in a different mode than that in the specimen signature.

Solution 4.

It is a very ticklish situation. We are not bound to refund the amount merely because the amount claimed is the difference found in our records. May be, another claim will be received by us from another party, after a few days. However, the customer is a valued customer; he has come to the branch on the same day and claims that his accounts show that excess cash has been remitted into the account by mistake. The credit voucher of the company/ system should be perused to find out any clues of excess remittances. This can be verified by perusing his account books also. We may agree to pay him the amount if he provides an indemnity to the bank against any loss or damage or claim on account of this payment. We may also request that the amount be kept as a term deposit for a period of 1 year (The customer generally will not resist the idea). This will also enable us to meet the liability if any other claim is proved against us. The settlement should be effected after referring to the Controlling Authority so that sufficient time will lapse before we agree for the payment; and if any other claims are received meantime, we will be able to decide on the genuineness of the various claims. It must also be remembered that the customer can make claim against the Bank on the ground of 'mistake of fact' in a Court of Law. i.e., instead of remitting 4,50,000/- he had remitted Rs.5,00,000/-.

Solution 5.

We will visit the customer at the nursing home. We have to ensure that the message of his illness has reached his wife so that she can come back immediately. The neighbours would probably have already arranged for it. In the present condition of the customer, he will not be able to sign/put the thumb impression on the cheque/withdrawal form. Payment of the amount may be made to the Nursing Home against the acknowledgment by a responsible person, for the specific purpose of treatment of Mr. A. The witness of two respectable neighbours who are now helping Mr. A in the nursing home may be obtained on the debit voucher. The customer is a retired Govt. officer and has substantial Term Deposits at the branch; also, the account is being conducted satisfactorily. Hence, it is an extra-ordinary case calling for extraordinary sense of concern for the customer. The customer/his wife will appreciate the bank's action and the image of the Branch will also go up. However, in the unlikely event of the customer contesting the debit, we can successfully counter it on the principle of 'Quasi-contract', as any liability incurred by a third party in these circumstances should be reimbursed by the beneficiary to the third party. This is only a very remote contingency.

Solution 6 Lapses:

a. Passwords of INB Branch interface compromised. b. Stock of PPKs not monitored with the help of INB reports. c. False confirmation/certification in RFIA report.

Ways to prevent this type of Frauds:

a. Regular monitoring of PPKs. b. PPKs should be accounted for, by entering and maintaining in a register. c. Each PPK issuance should be acknowledged by the customer by signing in the

register. d. Creating IS Security Awareness e. Implementing maker-checker functionality in true sense. f. Strict compliance of RFIA remarks.

promotion materials-2019testkart.in/download.php?file=promotion_materials_2019_sbild_trichy.pdfifsc...

Documents