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Why revised reporting system for loss of blank Draft forms has
been introduced?
To make use of the advance technology available with the bank for
speedier reporting/circulation of information on lost draft forms.
To save on time, to further decentralize the reporting system,
wherein the Zonal Offices, instead of LHOs, will arrange to directly
circulate the data to the ultimate users i.e., branches.
Why Savings Plus Account Scheme has been introduced?
The new product offers maximization of interest on savings bank
accounts to effectively combat competition.
Why powers of OJMGS-I have
been enhanced?
An upward revision was called for in the context of inflationary
impact on the value of the rupee.
Delegation of adequate passing and signing powers to the front
line officers will reduce delays and improve customer service at branches.
Why maturity wise and interest rate wise breakup of term deposits
and term loan is being sought in P- Form?
To have effective management of assets/liabilities
It is requirement of RBI
Why bank is keen to increase its share of miscellaneous and
non-fund based business?
No outlay of funds
Low risk prone area
Low operational cost
Low NPAs
Why interest rates on loans and advances are expressed in relation
to SBAR?
Because the need for fresh documentation can be avoided in the
event of revision of rates.
What are the advantages of ATMs?
Round the clock service can be provided to the customer.
There is ease and privacy of operations through self-service and
no need to involve bank staff in transactions.
Quick customer service is possible
Free from human errors. No sign of tiredness.
Cost of maintenance of ATM is lesser.
Assignment appraisal system has been introduced, why?
Total performance of an appraise is not covered in PAC.
AAS covers all officers and AARF is data based, comprehensive and
provides for self-appraisal.
Why Personal loan for general purpose against equitable of
property?
To offer general-purpose loan to all categories of individual
against the security of immovable property.
To meet competition with Pvt. Sector banks/ foreign banks.
Why general purpose Term Loan, flexi loans for trade and services
introduced?
To provide a thrust in financing trade and services sector.
To meet competition
Why VRS?
To have a balanced age profile, providing for mobility, training,
development of skills and succession plan for higher-level position.
To provide an exit for employees who have an honest feeling that
they should now retire and take rest.
To have overall reduction in the existing strength of the
employee to increase productivity and profitability.
Why increase in minimum balance for SB, CA and also service
charges?
To take care of the increased cost of maintaining these accounts.
Rationalisation of other service charges keeping in view the
market situation.
Remittance business is to be encouraged by the Bank.
It provides free float
funds and Bank earns exchange/commission on the same. Good scope for earning with no risk and
with no deployment of funds. Interest
spread is decreasing resulting in squeezing of profits. So the importance of
Remittance as earner of income has gone up.
In addition to exchange, the branches get Central Office interest at
45% of exchange earned, by issuing drafts.
It also helps the Branches in getting business leads to improve its
business.
Drafts of Rs.50000/- and above are to be signed by 2 officials.
R.B.I Directives
To prevent the incidents of frauds and malpractices by having a
better control at issuing / paying branch.
Drafts for above Rs. 50,000/- should not be issued against cash.
R.B.I has issued
directive to the Banks that Draft, T.T, Bankers cheque, RTC above Rs.
50,000/- are to be issued by debit to the bank account. This is done to avoid
tax evasion and misuse of banking channels. This also helps in curbing benami
/ fictitious transaction which in turn will avoid circulation of black
money. Similarly, payment of
remittances above Rs.50, 000/- should be made only through the account and
should not be paid in cash.
Now, draft advices are not required upto Rs.1 Lac.
Of the total amount of all frauds reported in the Bank, only 9%
of it relates to Draft account. Out
of this 9%, around 85% of the amount involved in the Drafts frauds relates to
Drafts issued for amounts of Rs. 1,00,000/- and above. Drafts of Rs. One lakh and above
constitute only 3% of the total Drafts issued by the Bank. So to follow up
effectively the Drafts paid ex-advice and to reduce the work burden, the Bank
took a conscious decision to prepare advices for Drafts of Rupees one lakh
and above with effect from 1.5.95.
Indemnity is to be obtained for issuing duplicate draft.
It is possible that both original and duplicate drafts might have
been negotiated to the holders in due course in which case Bank is obliged to
pay both the original and the duplicate.
So to protect the Bank?s interest, indemnity is taken before issuing a
duplicate draft.
Payment of a Bank draft cannot be stopped.
Drafts are issued by one branch on another for value
received. Hence, the bank cannot go
back on its own promise to pay the money, which was received as
consideration. Once a draft is
issued, the Bank becomes trustee of the payee for the draft amount. Third parties might have got the title to
the draft by negotiation in which case Bank is bound to pay. Hence payment of draft cannot be
countermanded.
An application for a TT is, invariably, obtained in COS 165 alone.
COS 165 contains an indemnity clause which protects the bank
against any damage, loss or injury arising or resulting from omissions,
delays, errors in transmission, delivery or non delivery of telegraphic
message or deciphering the message.
A TT favouring X cannot be credited to the Joint account of
X&Y, without the approval of X.
The money belongs to X and if the money is credited to joint
account it becomes the joint property of X and Y. If the operation in the
account is E or S, it is possible that Y may withdraw the amount without the
knowledge of X. Hence T.T favouring X
should not be credited to joint account without the consent of X.
RTCs can be paid even after business hours.
To help the purchasers who are tourists and also not to
inconvenience them, RTCs are paid even after business hours. As the amount is
paid to the purchaser himself, the question of countermanding does not arise.
RTCs are not issued at par.
The cost of operation of
RTC business has gone up. Float funds
available due to delayed encashment of RTCs has come down. This is to avoid
using RTCs for commercial transactions.
So now RTCs are issued after collecting commission.
In case of S.B. and T.D.R. accounts maintained in the style of E
or S, who all are required to consent for closure of such accounts?
The consent of one of the joint account holders would be
sufficient for closure of such accounts.
This facility which was already existing for TDR accounts has been
extended to Savings Bank accounts also a) to maintain uniformity of approach b) as a measure of flexibility in our
service
If the balance is less than Rs. 50/- in an operative Savings Bank
Account, the account has to be closed.
What is the rationale?
In order to reduce the unremunerative accounts.
Discouraging the customer from opening a number of accounts.
Phasing out old inoperative accounts to decrease the potential
area of fraud.
On account of revision in minimum balance and escalation of
service charges.
Why an introduction is a must for opening a current account and
other deposit accounts?
It facilitates to establish the identity of the new customer.
If it is not taken, the Bank may be held liable for being
negligent and may, therefore, lose protection afforded by law to the
Collecting Banker under Section 131 of Negotiable Instruments Act, 1881.
This measure is also to curb ?benami? or fictitious transactions.
It helps us in filtering undesirable customers.
RBI instructions
Whether current account can be opened in the name of a minor? If Not, give reasons?
A current account cannot be opened for a minor. In respect of a minor, if an overdraft is
created by oversight in his current account it cannot be recovered legally.
When a chequebook is issued through a constituent?s messenger, the
constituent must be advised direct and not through the messenger who takes
the chequebook. Why?
To ensure that the chequebook issued has not fallen into
unauthorised hands.
Cheques payable to a firm should not be accepted for credit of the
private account of a partner without the sanction of the other partners. Why?
It is the responsibility of the Collecting Banker to credit the
amount to the payee only as per the directions of the drawer of the
cheque. As per the drawers
instructions the amount has to be paid only to the firm. If it is credited to the partner?s
individual account the bank will be liable for conversion
Passing and Signing powers of Junior Management Grade Officials
have recently been increased.
An upward revision was called for in the context of inflationary
impact on the value of the Rupee.
Delegation of adequate passing and signing powers to the
frontline officers will reduce delays and improve customer service at
branches.
Interest has to be paid to customers on delayed collections of
instruments.
As per the directives of the RBI, based on the recommendations of
the Goiporia Committee on Customer Service in Banks.
To compensate the customers for delay in collection of instrument
To tone up the efficiency of the banking system.
DDP (Cheques) is delinked from Branch Clearing and now debited to
DD Purchase account in General Ledger.
To streamline the existing dual system of accounting procedures
for same type of transactions and to bring about a uniform treatment of
cheques purchased.
To reduce the pressure on Branch Clearing General Account system,
more particularly to reduce originating debits.
The new system has been introduced w.e.f. 01.04.2000.
Why new procedure for disposal of security forms?
To simplify the procedure which was prescribed way back in 1986.
To disassociate the inspecting official/ circle auditors from the
work relating to identification and destruction of obsolete forms which is
purely operational in nature.
No entry in DD Purchase (Bills)/DD Purchase (Cheques) Account
should remain outstanding for more than 180 days as on 31st March
i.e., no entry prior to 3rd October should remain outstanding.
As it attracts provisioning norms & have adverse effect on
Bank?s Capital Adequacy/Profitability.
Revised Accounting Procedure for DD Purchases (Cheques) has been
modified w.e.f. 29th October 2001.
To remove deficiencies in the existing procedure, in the light of
the feedback received from the branches/circles.
To streamline the procedure for DD Purchases (Cheques) Account,
both at computerised and non-computerised branches.
Cash officer should arrange to carry out intra-day cash
verification at the cash counter(s) at irregular intervals. Why?
To reduce incidence of frauds committed at cash counters by
employees with fraudulent bent of mind.
To curb tendency of some of the employees working at the cash
counters to pocket money without accounting the same in the Bank?s Books.
New HL series draft form for drawing drafts for Rs 10 Lacs and
above but below Rs 1 crore have been implemented by Associate Banks w.e.f.
01/04/01
To facilitate Associate Banks to draw high value drafts on all
MICR centres and to use the appropriate form, as drawings of Rs 1 Crore &
above are rare. (The HL series of drafts between Rs 10 lacs and Rs 100 lacs
which are presently in use will be withdrawn on introduction of new HL series.
For drawing of Rs 1 crore or more, they will use multiple drafts of HL
series.)
SBI Kisan Gold Card Scheme has been launched?
The scheme has been designed to encourage repayment culture in
Agricultural Banking
This is a new product designed for the benefit of farmers with an
excellent repayment record for the last five years and more with a view to
allow them to have flexibility and choice in regard to the amount, time,
purpose including consumption needs and repayment schedule within prescribed
outer limits.
Land Purchase Scheme for Small and Marginal farmers has been
Launched.
To enable small/marginal farmers to consolidate their holdings to
attain economic viability in their operations and development of waste and
fallow lands.
?e-Realisation? facility has been implemented w.e.f. 29/10/01
To ensure speedy (i.e. on line) realisation of DDP instruments
sent to the drawee branches on collection basis.
To promptly adjust the outstanding debit entries in the DD
Purchase (Cheques) A/C
To reconcile inter office transactions in respect of DDP
realisation through the STEPS Office, which provides almost instantaneous
system of reconciliation of inter office transactions between two STEPS
enabled branches.
This will, in turn, reduce pressure of reconciliation of IOA
Dept., which is the ultimate objective of introducing STEPS system.
Procedure for issuance of Duplicate Drafts for drafts issued on
continuous draft stationary has been streamlined. Why?
To clarify the procedure for issue of duplicate drafts at fully
computerised branches and to ensure uniformity in the matter.
SME Credit Plus Scheme has been introduced?
This new scheme is designed to help SSI units to meet unforeseen
expenditure in their day-to-day operations in a flexible and hassle-free
manner.
Account opening form for Individuals has been modified.
To make the account opening form user friendly and to collect
information on our account holders.
Long Term Floating Rate Deposit Scheme has bee launched.
To provide depositors an option to invest in long term maturity
but at a floating rate of interest so that they can have a long term
portfolio with an opportunity to gain in any upward movement in interest
rates.
Now, it has been decided to freely accept term deposits for over 5
years, up to a maximum period of 10 years at the rates applicable for
deposits of 3 years and above.
To correct the current mismatches in assets and liabilities in
the long term baskets.
FD related entries have been delinked from BCGA and switched over
to Forex Clearing General Account (FCGA) w.e.f. 15/12/2000
Forex related entries are different from other non-forex inter
office entries. For better monitoring and follow up, forex entries require to
be routed through a separate General Ledger account.
Reconciliation of rupee and foreign currency legs of forex
transactions is inter dependent and can best be undertaken by a single
agency, i.e. FD
Technology based solutions provide for ?on line? reporting and
reconciliation of entries so as to drastically reduce the accumulation of
unreconcilied pipeline entries. This will in turn result in the year-end
lower provisions on unreconcilied debit entries in inter office and Nostro
Accounts.
STEPS has been introduced.
The STEPS project has been conceived as a modern technology initiative
and a cost effective integrated payments systems solution, fully exploiting
the present level of total branch computerisation based on Bank Master.
It will meet the ever-increasing customer demand for faster
remittances and speedier collections and thus reduce customer complaints.
To provide an almost instantaneous and automated reconciliation
system for inter office transactions between FCBs. This will substantially
reduce the pressures on the existing Reconciliation System relating to BCGA
transactions
`e-Transfer? facility has been introduced.
To lay down suitable alternative procedure to be followed at the
STEPS enabled branches for effecting prompt payment of `e-Transfer? in case
the communication links between the STEPS Office and the STEPS enabled
branches fail.
It has been decided to afford immediate credit for Banker?s
cheques issued by local branches to the account of the payee at any of our
local branch in the same local area. The legend printed on the banker?s
cheque ?Payable at par locally? should be deleted with a rubber stamp before
issuing the banker?s cheque to the purchaser.
To improve the customer service in the area of banker?s cheque,
which are prepaid instruments, used for local payments.
To follow a uniform practice of format for the banker?s cheque
like all other banks as the existing legend does not convey any specific
information and is not printed on the banker?s cheques of other banks.
It has been decided to affix specially designed Hologram stickers
on high value drafts of Rs 1 Lacs and above and also on BGs and LCs
irrespective of amounts w.e.f. 15/06/01
To provide additional security measure for prevention of frauds.
It has been decided to introduce a register at the branches
conducting various types of transactions having effect on settlement of
funds, to record full particulars thereof where penal interest has been paid.
To reduce cost on payment of penal interest on account of all
types of value dated transactions.
It has been decided to make provision for incorporating the name
of the place of execution on the DP Note and DP Delivery letter.
The place of making the Note is an essential part of the cause of
action and the court of the place of execution has always jurisdiction to try
the suit on the Note. This would also determine the forum in which the action
may be brought on the Note.
Existing chequebook issue register has been amended.
Additional column ?To whom issued? for recording the account
number of the account holder in the chequebook register has been inserted to
avoid omission of recording the account number in the cheque book register.
It has been decided to withdraw Big Buy Scheme for purchase of
consumer durables articles w.e.f. 16th April 2001
It is owing to problems faces in administration of the loans
under the scheme at various stages of disbursal and post-disbursal follow up.
To ensure effective administration of loans in the Personal
segment.
Personal Loan Scheme has been modified w.e.f. 16th
April 2001
To make our scheme more broad based and liberal so as to make it
more customer oriented and competitive.
It has been decided to stipulate a margin of 10% in respect of
advances to members of staff/retired employees of the Bank also against the
security of RBI Relief Bonds.
For bringing margins on staff loans against RBI Relief Bonds in
line with those against other Government securities like IVP, KVP and NSC,
etc.
Scheme for loans to individuals for purchase of Home Computers has
been discontinued.
Features of the scheme had become outdated in the present context
and it has outlived its utility. Loans for purchase of computers should be
given under Personal Loan Scheme of the Bank.
In case of SBI Car Loan Scheme, powers for waiver of processing
charges in full have been vested to different functionaries.
To enhance competitiveness of the scheme and to give greater
discretion at operating level.
It has been decided to grant overdraft against security of life
insurance policy issued by SBI Life Insurance Company Ltd. On the same terms
and conditions as stipulated in case of overdrafts against Life Insurance
Policies issued by LIC
To provide strategic promotional support to the product of our
Joint Venture Company.
It has been decided to grant discretion to the branches to wave `
minimum interest? clause on housing loan accounts.
To remove rigidities in earlier interest rate structure with a
view to retaining customers.
Bank Order Scheme has been discontinued.
The scheme is neither popular nor remunerative and heavy
expenditure is involved in its implementation.
Minimum balance in SB&C/A and related service charges have
been revised
Increase in minimum balance requirements to take care of the
increased cost of maintaining the records.
Rationalisation of other service charges, keeping in view the
market situation
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