Sachet : An SLCC and RBI initiative

Visit :

http://sachet.rbi.org.in

State Level Coordination Committee (SLCC) is the joint forum formed in all States to facilitate information sharing among the Regulators viz. RBI,SEBI,IRDA,NHB, PFRDA, Registrar of Companies (RoCs) etc. and Enforcement Agencies of the States viz Home Department, Finance Department, Law Department, Economic Offences Wing (EOW) etc., with the objective to control the incidents of unauthorized acceptance of deposits by unscrupulous entities. In the recent past, there has been a spurt in the activities of the entities which accept money under various garbs by violating the directions of the Regulators and structure their scheme in a manner which escapes the apparent meaning of Deposits and the attention of the Regulators.

SLCCs were reconstituted in May, 2014 with renewed focus on the illegal activities of the unauthorised entities. In the last 2 years, the regular discussion among the Regulators and Enforcement Authorities has led to increased awareness & co-ordination and Standard Operating Procedures are being evolved for effective handling of such matter.

We welcome members of public to share any relevant information at this Forum, and that will help us in addressing the problem of unauthorised collection of deposits more effectively.

Modification in Thresold Amount and Sweep Frequency

Modification in Thresold Amount and Sweep Frequency

Our bank is having Auto sweep deposit scheme for below mention product. There are some changes done by bank in Thresold Amount and Sweep Frequency.

Note : This changes are effctive from 01 December - 2016

• Baroda Super Saving Bank Account (SB117)
• Baroda Premium Current Account (CA108)
• Baroda Premium Current Account - Previlege (CA107)

Increase in Thresold Amount :

• From 20,000 to 50,000 for Baroda Super Saving Bank Account
• From 75,000 to 5,00,000 for Baroda Super Saving Bank Account
• From 2,50,000 to 5,00,000 for Baroda Super Saving Bank Account

Flexibility in Increasing Thresolf/Sweep Out Amount  :

• On request of the customers if any, Branches will be able to increase the thresold amount.
• As per the preference of the customer, Sweep amountcan also be incresed in multiples of minimum sweep out amount specific to the schecme

Modification in Frequency :

• From Daily to Weekly ( Every Monday)

There are also some clarifications available for purticular scheme. Please refer the circular BCC:BR:108/496. Click to Download

Promotion, Deployment and Business Planning Calendar for the Year 2017-18

Reference : Circular BCC:BR:108/497 date 20-10-2016 Click to download

Plan Of Activity	Tentative schedule Written Test - - Interview Dates	Tentative Result Date
CL to JMG-I	8th January - 2016 1st Week of Feb-2016	1st April-2016
JMG-I TO MMG-II	15th January - 2016 2st Week of Feb-2016	1st April-2016
MMG-II to MMG-III	15th January - 2016 3st Week of Feb-2016	1st April-2016
MMG-III to MMG-IV	--------------- 4st Week of Feb-2016	1st April-2016

Opening of Advacne Account "Allied activities to Agriculture" under Pradhan Mantri Mudra Yojana - PMMY

All publ ic sector banks including our bank are give lots of target to canvas the Advances under PMMY.
With respect to this our bank has given a circular to Coverage of Allied Activities to Agriculture under PMMY. (Reference : Circular no. BCC/BR:108/469 dated 04/10/2016)

Many branches are quiring regarding the matter, Thus bank has give another circular which give the below information to our credit officers.

Clarification 01 :

Regaring opening new Account, Branches have to open the account as usual with its respective scheme code but just need to do one change

• Put unique code 300 in Ledger number field in General Account Details

Clarification 02:

All the existing accounts opened after 01/4/2016, which are under Allied Activities to Agriculure and are satisfing the guideline of PMMY can be reported under PMMY. For this purpose we need to do below step.

• Do ACM for the purticular account and Put unique code 300 in Ledger number field in General Account Details
• Do ACM -> Function M->Option 0 (Zero)->put code 300->F4->F10

Reference : Circular no . BCC:BR:108/490 Dated 17/10/2016

Opening of Advacne Account "Allied activities to Agriculture" under Pradhan Mantri Mudra Yojana - PMMY

All publ ic sector banks including our bank are give lots of target to canvas the Advances under PMMY.
With respect to this our bank has given a circular to Coverage of Allied Activities to Agriculture under PMMY. (Reference : Circular no. BCC/BR:108/469 dated 04/10/2016)

Many branches are quiring regarding the matter, Thus bank has give another circular which give the below information to our credit officers.

Clarification 01 :

Regaring opening new Account, Branches have to open the account as usual with its respective scheme code but just need to do one change

• Put unique code 300 in Ledger number field in General Account Details

Clarification 02:

All the existing accounts opened after 01/4/2016, which are under Allied Activities to Agriculure and are satisfing the guideline of PMMY can be reported under PMMY. For this purpose we need to do below step.

• Do ACM for the purticular account and Put unique code 300 in Ledger number field in General Account Details
• Do ACM -> Function M->Option 0 (Zero)->put code 300->F4->F10

Reference : Circular no . BCC:BR:108/490 Dated 17/10/2016

Everything you need to know about Sukanya Samriddhi Yojana

Everything you need to know about Sukanya Samriddhi Yojana

Note :

Invest in the scheme before 10th of every month, as the amount deposited after the 10th will not earn any interest.

The novel sukanya samriddhi yojana (ssy) envisaging financial security for girl child launched by modi government has been one of most attractive small savings scheme. thusfar, over 76 lakh account have opened accounting rs 3,000 crores. however, off late scheme undergone a few tweaks. with this, also addressed some ambiguities which were prevalent in original rules scheme.

Following are some of the details that need to be kept in mind while opting for SSY

Opening of Account: This account can be opened for maximum two girl children in a family. A Parent or a legal guardian is eligible to open an account in the name of the girl child anytime from her birth till she attains the age of 10 years. This provision, now, has been extended to include even adopted daughters.

Eligibility: The girl child strictly has to be an Indian resident throughout the tenure of the scheme. Incase if the residency status of the girl child changes in the interim, no interest shall be payable from the date of change and the account will be closed prematurely.

Tenure: Deposits now can be made for a total of 15 years from the date of opening the account. Earlier it was 14 years.

Mode of Investment: Apart from cash and cheque, deposits can also be made electronically if the bank or post office has access to the facility of core banking solution.

Interest Rate: Interest rates associated with SSY will be reset every quarter, similar to other small savings scheme. Accordingly, till June 2016, these deposits will be earning 8.6% as compared to 9.2% during 2015-2016.

For the purpose of interest computation every month, the lowest account balance between 10th and the end of the month, will be considered. In effect, the amount deposited after the 10th will not earn any interest for that month.

Quantum: The minimum investment to be made is at Rs 1,000 and maximum investment remains capped at Rs 1.5 lakh a year. Any excess amount deposited will not earn any interest. Additionally, such an excess amount can be withdrawn anytime.

Penalty in case of non-maintenance: Incase if the minimum investment of Rs 1,000 is not deposited every year, then the account will be considered to be in default. If this 'in default' status continues for 15 years, the amount deposited shall attract an interest rate equivalent to the Post Office Savings Account interest rate which is currently at 4% per annum.

Incase if the default is due to the death of the guardian of the  Account  holder  who  opened  the  account, then such an account will continue to attract the interest rate notified by the Government.

Regularising default account: By paying a fine of Rs 50 for each year the account has been in default along with such minimum specified amount for the year or years of default.

Tax: The amount invested is eligible for deduction under Section 80 C and follows Exempt-Exempt-Exempt (EEE) tax regime

Maturity: The account will mature on completion of 21 years and no further interest will be accrued even if such an account is not closed. Earlier, interest accrual was till the time the account was closed.

Additionally, in earlier rules, the account could be deemed closed at the time of marriage of the girl child. However, in the new rules, the account can be very well be continued till the age of 21, even if married in the interim.

Transfer of account: The account can now be switched between banks and post office and vice versa by payment of Rs 100 as fee. Incase, the switching is due to change of residence, then a proof of change of residence needs to be submitted and no fee will be charged.

Withdrawal: Earlier, one could withdraw 50% of the accumulated amount for education purpose, provided the girl is 18 year of age or passed Std10th. Now, the withdrawal will be allowed on the basis of the actual fees payable. It can either be withdrawn as a lump sum or in course of five annual installments.

In case of marriage, the accumulated sum can be withdrawn one month before or three months after the date of marriage. At that time, it is imperative to provide age proof inorder to prove that the child is not below 18 years of age.

Pre-mature closure: Earlier premature closures would be allowed at any point in time. However, now it is not allowed now before the completion of five years. But redemption is allowed in cases of extreme compassionate  grounds  such  as  medical  support  in life-threatening  diseases  of  the  Account  holder  or  death  of  the  guardian. In such instances, interest paid will be equivalent to post office savings.

Documents at the time of closure: Application for account closure, proof of identity, residence and citizenship

Despite all these changes, financial planners are of the view that SSY continues to remain one of the most attractive debt scheme when it comes to saving for a girl child. Even though there are multiple other options available in the market in the form of mutual funds, SSY triumphs when it comes to tax efficiency and predictability, making it an attractive option for a conservative investor. Not only is the interest rate offered higher than fixed deposits, the gains accumulated over the years are also tax free.

Renewal of Medical Insurance scheme for Retired Officers/Employees

Renewal of Medical Insurance scheme for Retired Officers/Employees

W.e.f  01-11-2016 to 31-10-2017 with Increased Premium

Option :1 Normal Renewal (Without Domiciliary Cover)

Option : 2 Renewal With Domiciliary Expences Benefit

For the Payment of this premium amount our bank offers a special loan product

Special Personal Loan for BOB Pensioners

For more details find the below reference circular :

Reference : Circular :HO:BR:108:148 dated 15th Octo-2016

Relaxation in Income Critearia for beneficiaries of 7th Pay Commission - Baroda Home Loan

After the 7th Pay Commission Central Govt. employees, State Govt. employees and defence personal will get the benefits of higher pay

In order to attract 7th pay beneficiaries, our bank has decided to relax in income criteria to avail for Baroda Home Loan

Existing Guidelines :

Income Criteria (Salaried person) :

Average of Last 3-Months GMI (Gross Monthly Income)

Modified Guideline :

Income Criteria (Salaried person) :

Last Months Gross Salary (Excluding amount of Arrears)

Note :

This relaxation only give to the beneficiaries of 7th Pay Commission.
This is also applicable for all the product under Baroda Home Loan like Home Improvement , AAA.
This is only valid up to March - 2016

Reference :
circular : BCC_Br_104_489 Dated 14th Octo-2016

Finacle 10 - Training Module : Our Bank migrating to Finacle 10

You can see feature and details of Finacle 10 in Below Document. Trainings are started for our staff in Next week for the same.
(Nomination will be from HR for Finacle 10 training)

Note : This is implemented by IOB but you can view features of Finacle 10 which will be soon migrated by our bank.

RBI Rate Cut - May be a Diwali Gift for Home Loan Customers

On the back of inflation data and the slowing growth rate, the Reserve Bank of India (RBI) cut the repo rate by 0.25 per cent on Tuesday, while keeping the Cash Reserve Ratio (CRR) unchanged.

Impact on home loan borrowers 

A 0.25 per cent reduction may not appear much at this point, but if the rate keeps falling over a period of time and banks continue to pass on the benefit, the cumulative impact could be huge. There is a large amount of savings in the interest outgo over the long-term. 

Borrowers stand to gain as and when banks reduce their lending rate. On a 9.50 per cent interest on a home loan of Rs 40 lakh for 15 years, the total interest burd can be reduced by Rs 1 lakh if the home loan rate also reduces by 0.25 per cent. Here's how much you can save on various loan amounts:

Impact on bank's MCLR : 

All loans with flexible interest rates, including home loans, and taken after April 1, 2016, are linked to the bank's marginal cost of funds based lending rate (MCLR), while those before that are linked to the bank's base rate. Pre-April 1 borrowers however, have the one-time option to switch to the MCLR rates. 

Banks could start announcing a cut in their lending rates soon. Currently, one-year MCLR is about 9-9.5 per cent for most banks.Hence, the direct impact of the rate cut could be on the lower MCLR's of the banks, which they disclose every month. The actual lending may happen at a mark-up. Say the bank MCLR is 9.25 per cent, the actual home loan may be fixed at 9.45 per cent, i.e., with a 0.20 per cent of mark-up.

Options for existing home loan borrowers 

For someone with an existing home loan on flexible interest rate, the benefit can be availed in two ways -- either EMIs may be reduced or the tenure. Banks on their own typically reduce the tenure automatically and thus transfer the benefit of lower rate to their customers. Ask your banker about how the adjustment has been done or log on to your home loan account (in few days time) to see if the benefit has been passed on to your account. If you wish to lower your EMI, you need to contact your banker and may have to submit revised Electronic Clearing Service (ECS) mandate.

Reduce tenure 

Let's assume you had taken a home loan of Rs 40 lakh at an interest rate of 10.50 per cent for 180 months with an EMI of Rs 44,216. Today, after say three years, the outstanding stands at Rs 36,12,000. 

If your bank reduces the rate by 0.25 per cent, you have the option to keep the EMI constant, and the tenure falls by about nearly 40 months. 

'Switch over' 

You may also switch your loan with the existing lender by opting for 'switch over' to current rate of interest on home loans. In doing so, one may have to pay 0.50 per cent plus taxes. Say, if you are paying 10.5 per cent and the bank is offering 9 per cent to new borrowers, switch over may be a better option. 

Foreclosure 

If you are continuing with a home loan with a higher interest rate than the competitors, you may foreclose and transfer the loan to a new lender. Many banks are running campaigns with no processing fees for loans that get transferred. If the difference in interest rates is high, it's better to do so. There will not be any foreclosure charges if the loan is on floating interest rate basis and where the housing loan is on fixed interest rate basis and foreclosed out of your own sources.

DBT - DIRECT BENEFIT TRANSFER

A decision was taken in the meeting of the National Committee on Direct Cash Transfer held by Hon'ble Prime Minister that Direct Benefit Transfer (DBT) will be rolled out from 1 January 2013 in 43 identified districts. The purpose of Direct Benefits Transfer is to ensure that benefits go to individuals' bank accounts electronically, minimising tiers involved in fund flow thereby reducing delay in payment, ensuring accurate targeting of the beneficiary and curbing pilferage and duplication. 28 schemes were identified for DBT rollout in 43 identified districts from 1.1.2013. It was further decided that future benefits under all the 28 schemes would be transferred in the following phased manner - (a) in 20 of the 43 districts, from 1.1.2013 (b) in 11 of the 43 districts after 1.2.2013, and (c) in the remaining 12 of the 43 districts after 1.3.2013.

Structure

The primary aim of this Direct Benefit Transfer program is to bring transparency and terminate pilferage from distribution of funds sponsored by Central Government of India. In DBT, benefit or subsidy will be directly transferred to citizens living below poverty line. Central Plan Scheme Monitoring System (CPSMS), being implemented by the Office of Comptroller General of Accounts, will act as the common platform for routing DBT. CPSMS can be used for the preparation of beneficiary list, digitally signing the same and processing of payments in the bank accounts of the beneficiary using the Aadhaar Payment Bridge of NPCI. All relevant orders related with the DBT are available on the CPSMS website

History

The program was launched in selected cities of India on 1 January 2013. It was launched in 20 districts, covering scholarships and social security pensions initially.
Former Union Minister for Rural Development of India Jairam Ramesh and former Chief Minister of Andhra Pradesh N. Kiran Kumar Reddy inaugurated the scheme at Gollaprolu in East Godavari district on 6 January 2013. The government has decided to review the progress on regular basis.
The first review is scheduled to be undertaken on 15 January 2013. According to P. Chidambaram, former Union Minister of Finance of India, the scheme will be rolled out across 11 more districts by 1 February and 12 more districts by 1 March 2013.
In April 2013 the government decided to extend the DBT scheme in 78 more districts of the country from July 1, 2013. The decision was taken by then Prime Minister Dr. Manmohan Singh after a review meeting. The 78 new districts will include 6 districts each from Uttar Pradesh and Himachal Pradesh, 3 each from Bihar and Tamil Nadu, 2 from West Bengal and 4 each from Odisha and Gujarat.
In a review by the Prime Minister's Office on 5 August 2013, the minutes reported that two schemes dominated transfers through CPSMS - 83% of all transfers were for the Janani Suraksha Yojana and scholarships. Lack of computerized records for schemes to be linked to DBT was hindering rollout. The minutes show that out of 39.76 lakh beneficiaries who ought to have been covered under various schemes, only 56% had bank accounts, 25.3% had both bank accounts and aadhaar numbers, but only 9.62% have bank accounts seeded with aadhaar numbers.

Programs part of DBT

• National Child Labour Project
• Student Scholarship
• LPG subsidy DBT

TOOLS FOR RECOVERING NPA (Specical for Credit Officers)

      For recovery of NPA there are different tools are available. The important purpose of these tools are to recover the loan amount from borrower. These tools can beuse according to Loan amount.Following are the different recovery tools.

• LOK ADALATS
• DEBT RECOVERY TRIBUNALS (DRT)
• SARFAESI ACT, 2002
• ASSET RECOVERY CONSTRUCTION INDUSTRY LIMITED(ARCIL)
• CORPORATE DEBT RESTRUCTURING (CDR)
• ASSET MANAGEMENT COMPANY(AMC)

Lok Adalats :

Lok Adalats is a mechanism to settle matters relating to recovery of dues, out of court. These are convened by Debt Recovery Tribunals / Debt Recovery AppellateTribunals. Lok Adalats have no judicial powers. It is a mutual forum for the bank and the borrower to meet and arrive at a mutual settlement. Once the settlement is signed by boththe parties, the same is placed before the court. The court would then pass a suitabledecrees / orders as per the terms of settlement. Such decrees can not be challenged in thenext higher courts. At present, accounts in µdoubtful¶ and µloss¶ category with outstandingabove Rs. 5.00 lacs can be referred to this forum. Lok Adalats Proved to be quiteeffective for speedy justice and recovery of small loans.

DEBT RECOVERY TRIBUNALS (DRT)

Keeping in line with the international trends on helping financial institutions recover their bad debts quickly and efficiently, the Government of India has constituted thirty three Debts Recovery Tribunals and five Debts Recovery Appellate Tribunals across the country. 

The Debts Recovery Tribunal (DRT) enforces provisions of the Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act, 1993 and also Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act, 2002. 

Under the Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act, 1993 banks approach the Debts Recovery Tribunal (DRT) whereas, under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act, 2002 borrowers, guarantors, and other any other person aggrieved by any action of the bank can approach the Debts Recovery Tribunal (DRT). 

Debts Recovery Tribunal are located across the country. Some cities have more than one Debts Recovery Tribunals. New Delhi, Chennai, Kolkata and Mumbai have three Debts Recovery Tribunals. Ahmedabad and Chandigarh have two Debts Recovery Tribunal (DRT) each. One Debts Recovery Tribunal has been constituted at Allahabad, Aurangabad, Bangalore, Coimbatore, Cuttack, Earnakulam, Guwahati, Hyderabad, Jabalpur, Jaipur, Lucknow, Madurai,Nagpur, Patna, Pune, Vishakapatnam and Ranchi.

SARFAESI ACT, 2002

The full form of SARFAESI Act as we know is Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Banks utilize this act as an effective tool for bad loans (NPA) recovery. It is possible where non-performing assets are backed by securities charged to the Bank by way of hypothecation or mortgage or assignment.

SARFAESI is effective only for secured loans where bank can enforce the underlying security eg hypothecation, pledge and mortgages. In such cases, court intervention is not necessary, unless the security is invalid or fraudulent. However, if the asset in question is an unsecured asset, the bank would have to move the court to file civil case against the defaulters.

ASSET RECOVERY CONSTRUCTION INDUSTRY LIMITED(ARCIL)

The word asset reconstruction company is a typical used in India.  Globally  the equivalent phrase used is " asset management companies". The word "asset reconstruction" in India were used in Narsimham I report where it was  envisaged for  the setting up of a central Asset Reconstruction Fund with money contributed by the Central Government, which was to be used by banks to shore up their balance sheets to clean up their non-performing loans.   However, this never saw the light of the day and later on  Narsimham II floated the idea  asset reconstruction companies..

Why ARC :

In last 15 years or so the a number of economies around the world have witnessed the problem of non performing assets.    A high level of NPAs in the banking system can severely affect the economy in many ways. The high level of NPAs leads to diversion of banking resources towards  resolution of this problems.  This causes an opportunity loss for more productive use of resources.  The banks tend to become risk averse in making new loans, particularly to small and medium sized companies. Thus, large scale NPAs when left unattended, cause continued economic and financial degradation of the country.  The realization of these problems has lead to greater attention to resolve the NPAs.  ARCs have been used world-wide, particularly in Asia, to resolve bad-loan problems. However, these  had a varying degree of success in different countries.   ARCs focus on  NPAs and allows the banking system  to act as "clean bank".

ARC in India :

 

In India the problem of recovery from NPAs was recognized in 1997 by Government of India.  The Narasimhan Committee Report mentioned that an important aspect of the continuing reform process was to reduce the high level of NPAs as a means of banking sector reform.  It was expected that with a combination of policy and institutional development, new NPAs in future could be lower.  However, the huge backlog of existing NPAs continued to hound the banking sector.  It impinged severely on banks performance and their profitability. The Report envisaged creation of an  "Asset Recovery Fund" to take the NPAs off the lender's books at a discount.

 

Accordingly, Asset Reconstruction Company (Securitization Company / Reconstruction Company) is a company registered under Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SRFAESI) Act, 2002. It is regulated by Reserve Bank of India as an Non Banking Financial Company ( u/s 45I ( f ) (iii) of RBI Act, 1934).

RBI has exempted ARCs from the compliances under section 45-IA, 45-IB and 45-IC of the Reserve Bank Act, 1934. ARC functions like an AMC within the guidelines issued by RBI.

 

ARC has been set up to provide a focused approach to Non-Performing Loans resolution issue by:-

(a) isolating Non Performing Loans (NPLs) from the Financial System (FS), 

(b) freeing the financial system to focus on their core activities and 

(c) Facilitating development of market for distressed assets.

CORPORATE DEBT RESTRUCTURING (CDR)

Corporate debt restructuring is the reorganization of a company's outstanding obligations, often achieved by reducing the burden of the debts on the company by decreasing the rates paid and increasing the time the company has to pay the obligation back.

ASSET MANAGEMENT COMPANY(AMC)

An asset management company (AMC) is a company that invests its clients' pooled funds into securities that match declared financial objectives. Asset management companies provide investors with more diversification and investing options than they would have by themselves.

BOB Weaver Mudra Scheme - Pradhan Mantri MUDRA Yoiana (PMMY)

• Objective
• The scheme aims at providing adequate and timely assistance from the Bank to the weavers to meet their credit requirement i.e. for investments need as well as for Working Capital in a flexible and cost effective manner. The scheme will be implemented both in rural and uroan areas
• Eligibility
• Existing or experienced Handloom Weavers invotved in weaving activitv
• Purpose
• For purchase of looms and related capital expenditure and need based workinq caoital reouirement
• Nature of facilitv 
• Demand loan & Working capital finance 
• Maximum Limit 
• Rs,s.00 Lacs (lnclusive of Demand Loan and W'c. finance)
• Rate of lnterest 
• Rate of interest as per prevailing rate applicable to MSME segment as under: 
• Charging of Interest: For example:. if, MCLR+SP+o.7o i.e.10.35 at present, subject to revision in MCLR from time to time as per guidelines of the Bank. To be charged from Borrowers: 10.3570
• Interest subsidy to be claimed from GOI: Difference amount i.e. 4.35% at present subject to change in I/CLR shall be calculated and adjusted in the account on quarterly basis.
• Margin
• 20 % of total project cost (Capital Expenditure & W.c) Ma.gin up to Rs.10000/- or 20yo whichever is less shall be Drovided bv GOl. 
• Assessment of Limits 
• Demand Loan: 80% of cost of Looms and other accessories / caDital expenditqre
• Working Capital limit: Bank finance will be 2oo/o ol estimated / proiected turnover less marqin
• Ref : Circular no : BCC_BR_108_468 Dated  04-10-2016

History of Bank of Baroda

Bank of Baroda (BoB) was founded by Maharaja Sayajirao Gaekwad in July 1908. It started with a paid up capital of Rs 10 lakh. Bank of Baroda is a pioneer in various customer centric initiatives in the Indian banking sector.