Sunday, September 25, 2011

Indian Overseas Bank --Interview--useful for Banking related general awareness CWE PO/Clerks

4:27 PM



NOTE;  A perusal of the above Note will give one an idea of various facets of Banking.  It will be helpful for General Knowledge examinations and also in Bank Interviews.   Many common aspects relating to Banking will be useful for interview in other Banks also.
 This was downloaded in 2008.    PLEASE REFER IOB WEBSITE FOR FULL DETAILS.
Hence candidates who are appearing for interview in 2011 --please suggest changes to be made here after consulting 2011 figures. send email to samba.ssivan@gmail.com

INDIAN OVERSEAS BANK

Indian Overseas Bank (IOB) was founded on February 10th 1937, by Shri.M.Ct.M. Chidambaram Chettyar, a pioneer in many fields - Banking, Insurance and Industry with the twin objectives of specialising in foreign exchange business and overseas banking.

IOB had the unique distinction of commencing business on 10th February 1937 (on the inaugural day itself) in three branches simultaneously - at Karaikudi and Chennai in India and Rangoon in Burma (presently Myanmar) followed by a branch in Penang

Pre-nationalisation era (1947- 69)

During the period, IOB expanded its domestic activities and enlarged its international banking operations. As early as in 1957, the Bank established a training centre which has now grown into a Staff College at Chennai with 9 training centres all over the country.

IOB was the first Bank to venture into consumer credit. It introduced the popular Personal Loan scheme during this period.

In 1964, the Bank made a beginning in computerisation in the areas of inter-branch reconciliation and provident fund accounts.

In 1968, IOB established a full-fledged department to cater exclusively to the needs of the Agriculture sector. .
At the time of Nationalisation (1969)

IOB was one of the 14 major banks that was nationalised in 1969.

On the eve of Nationalisation in 1969, IOB had 195 branches in India with aggregate deposits of Rs. 67.70 Crs. and Advances of Rs. 44.90 Crs.

Post-nationalisation era (1969-1992)

In 1973, IOB had to wind up its five Malaysian branches as the Banking law in Malaysia prohibited operation of foreign Government owned banks. This led to creation of United Asian Bank Berhad in which IOB had 16.67% of the paid up capital.

In the same year Bharat Overseas Bank Ltd was created in India with 30% equity participation from IOB to take over IOB’s branch at Bangkok in Thailand.

In 1977, IOB opened its branch in Seoul and the Bank opened a Foreign Currency Banking Unit in the free trade zone in Colombo in 1979.

The Bank has sponsored 3 Regional Rural Banks viz. Puri Gramya Bank, Pandyan Grama Bank, Dhenkanal Gramya Bank

The Bank setup a separate Computer Policy and Planning Department (CPPD) to implement the programme of computerisation, to develop software packages on its own and to impart training to staff members in this field.

Post Reform Period - Unprecedented developments (1992 & after)

IOB entered Web site during the month of February 1997.

IOB got autonomous status during 1997-98

IOB had the distinction of being the first Bank in Banking Industry to obtain ISO 9001 Certification for its Computer Policy and Planning Department from Det Norske Veritas (DNV), Netherlands in September 1999. This Certification covers Design, Development, Implementation and Maintenance of software developed in-house, procurement and supply of hardware and execution of turnkey projects.

IOB started STAR services in December 1999 for speedy realisation of outstation cheques. Now the Banks has 14 STARS centres and one Controlling Centre for providing this service.

During 1999, IOB started tapping the potential of internet by enabling ABB card holders in Delhi to pay their telephone bills by just logging on to MTNL web site and by authorising the Bank to debit towards the telephone bills.

A Voluntary Retirement Scheme was introduced in the Bank on the lines of IBA package with Boards approval. The scheme was offered to Officers/Employees from December 15, 2000.

The Bank made a successful debut in raising capital from the public during the financial year 2000-01, despite a subdued capital market. The issue opened on September 25, 2000 for raising Rs.111.20 crore and was oversubscribed by 1.87 times. The issue closed on September 29, 2000 - on the earliest closing day. The allotment was made in October 2000. Consequent to the public issue, the share of the Government in the Bank's capital came down to 75%. The shares of the Bank have been listed on the Madras Stock Exchange (Regional), Stock Exchange at Mumbai and the National Stock Exchange of India Ltd.

IOB bagged the NABARD's award for credit linking the highest number of Self Help Groups for 2000-2001 among the Banks in Tamil Nadu.

IDRBT (Institute for Development and Research in Banking Technology) conferred the Best Award under Banking Technology to IOB. The award was given for the innovative use of banking applications on INFINET (Indian Financial Network) for the year 2001. Mobile banking under SMS technology implemented in Ahmedabad and Baroda. Pilot run of Phase I of the Internet Banking commenced covering 34 branches in 5 Metropolitan centres. IOB was one among the first to join Reserve Bank of India’s negotiated dealing system for security dialing online.

The Bank has finalised an e-commerce strategy and has developed the necessary internet banking modules in-house. For the first time a Total Branch Automation package developed in-house has been customised in one of the Overseas Branches of the Bank.

Most software developed in-house.

IOBNET connects Central Office with all Regional Office.

The Bank has paid a maiden dividend of 10% p.a for 2000-01, followed by 12% during 2001-02.

PERFORMANCE HIGHLIGHTS  - 30.06.2008

1.DEPOSITS:  Total deposits grew  from Rs.70205 crore as on 30th June 2007 to Rs,85001 crore as on 30th June 2008 registering an increase of Rs.14796 crore and growth percentage of 21.08%.
2.ADVANCES:  Gross  Advances increased from Rs. 48610 crore as on 30th June 2007  to Rs.63419 crore as on 30th June 2008, recording an increase of Rs 14809 crore and growth percentage of 30.46%.
3.OPERATING PROFIT:  The operating profit for Q1  of 2008-09  is at Rs.241.18 crore as against the operating profit of Rs.409.17 crore for Q1 of 2007-08.
This decrease in the first quarter of this year  is mainly due to loss booked on account of  inter segment  category transfer of securities and loss on sale of securities and provision for wage arrears. 
4  NET PROFIT:  Net profit for Q1 of 2008-09 is at Rs,255.97 crore and this figure is lower by Rs.12.52 crores when compared to the net profit of Rs.268.49 crore booked during Q1 of 2007-08. 
5.TOTAL INCOME:  Total income for Q1 of 2008-09 is at Rs. 2186.83.          crore while the same was at  Rs.1907.79 crore for Q1 of 2007-08. The increase in terms of percentage works out to  14.63%. Interest Income has gone up to Rs.2217.08 crore from 1846.21 crore recording a percentage  increase of 20.09%. Other income has gone down  due to loss on sale and category transfer loss on  investments.
6.TOTAL EXPENSES:  Total expense for Q1 of 2008-09  is at Rs.1945.64 crore  and the same for the corresponding quarter last year was at Rs.1498.62 crore, recording a percentage increase of 29.83%. The interest expenses has  gone up from Rs.1137.20 crore to Rs.1490.91 crore with percentage increase of 31.10%.
7.  NET INTEREST INCOME:  Net interest income for Q1 of 2008-09 is at Rs.726.17crore while the same was at Rs 709.02 crore for the corresponding quarter last year. The percentage increase is 2.42.
8.CRAR:  CRAR under BASEL I as on 30-6-08 is at 11.41%; with TIER I component at 7.63%. Under BASEL II,  the ratio is at 11.25%. CRAR under BASEL I as on 30.6.07  was at 13.31%.  The slide in the ratio over the year is due to increased volume of business and consequent increase in risk weighted assets. The risk weighted assets increased from Rs.55025 crores to Rs.71597 crore during one year period.  The bank has not raised any capital from the market during the one year period.

Bank is well above the required CRAR ratio.

9.BUSINESS PER EMPLOYEE:  Increased from Rs.4.81 crore as on 30.6.07 to Rs.5.93 crore as on 30.6.08.
10. INTEREST MARGIN:  NIM was at  3.71% for the quarter ended 30th June 2007 and  the ratio is at 3.12% for the quarter ended 30th June 2008.

The slide is attributable to pressure on margin i.e. increase in interest  on deposits with out corresponding increase in interest  income from advances/investment. NII growth is minimal.
11..RETURN ON AVERAGE ASSETS:  The ratio has come down from 1.27%  to 0.99% over one year period.
12.CREDIT DEPOSIT RATIO:  Improved to 74.61% from 69.24% over one year period.
13.CASA:  The share of low cost deposits to total deposits has come down from 32.76% to 30.55% during one year period. This trend is sought to be arrested by vigorous campaign for low cost deposits  and launching  of new products like  IOB Gold and Silver Savings Accounts  and IOB Classic and Super Current Accounts.
14.NPA MANAGEMENT:  Gross NPA over one year period has come down from Rs.1137 crore to Rs.1099 crore bringing down the Gross NPA percentage from 2.34% to 1.73%.  However Net NPA percentage has gone up from 0.50% to 0.75% over one year period.
15.TOTAL CAPITAL FUNDS: Total capital funds of the bank  increased to Rs.8170 crore from Rs.7324 crores over one year period due to internal accretion. 
16.BOOK VALUE PER SHARE:  Book value per share of the bank  has gone up to Rs.91.40 from Rs.76.12 over one year period.


INDIAN OVERSEAS BANK IN SINGAPORE

  • Indian Overseas Bank is the first India based bank to commence operations in Singapore
  • The Bank started its operation as early as February 1941
  • Strategically situated in the heart of Central Business District
  • Housed in own building on Cecil Street just a walking distance from the Raffles Place and China Town MRT stations
  • Fully Automated Branch with SWIFT facility
  • Well equipped Dealing Room
  • Rendering full range of banking services for the last 62 Years
  • Specialises in Retail Banking Services, Remittance Services, Trade Finance Services and Credit Services
  • Opening of NRI accounts in any IOB Branch in India can be done through IOB-Singapore.
  • Wide range of Remittance facilities to India
  • Extended working hours on Saturday to cater to the Expatriate requirements
ABOUT IOB – ANOTHER ANGLE

Indian Overseas Bank (IOB) is a one of the major bank based in Chennai, with over 1,400 domestic branches and 6 branches abroad.

India Overseas Bank was established in 1937 to encourage overseas banking and foreign exchange operations. The Indian Overseas Bank started simultaneously with three branches. They are:
  • Indian Overseas Bank Chennai
  • Indian Overseas Bank Rangoon
  • Indian Overseas Bank Singapore
From the beginning Indian Overseas Bank served Chettinad, Ceylon (Sri Lanka), Burma (Myanmar), Malaya, Singapore, Java, Sumatra and Saigon.

In 1960 Indian Overseas Bank absorbed five weaker private sector banks including Kulitali Bank.

In the year 2000 India Overseas Bank India engaged in IPO which brought the government's share in the bank's equity down to 75%.

IOB International expansion
  • 1937-38: As mentioned above, IOB was international from its inception with branches Indian Overseas Bank Rangoon, Indian Overseas Bank Penang, and Indian Overseas Bank Singapore.
  • 1941: IOB opened a branch in Malaya that presumably closed almost immediately because of the war.
  • 1946: IOB opened a branch in Ceylon.
  • 1947: IOB opened a branch in Bangkok and re-opened others.
  • 1948: United Commercial Bank (see below) opened a branch in Malaya.
  • 1949: IOB opened a branch in Bangkok.
  • 1963: The Burmese government nationalized IOB's branch in Rangoon.
  • 1973: IOB, Indian Bank and United Commercial Bank established United Asian Bank Berhad. (Indian Bank had been operating in Malaysia since 1941 and United Commercial Bank Limited had been operating there since 1948.) The banks set up United Asian to comply with the Banking Law in Malaysia, which prohibited foreign government banks from operating in the country. Also, IOB and six Indian private banks established Bharat Overseas Bank as a Chennai-based private bank to take over IOB's Bangkok branch. The Bharat Overseas Bank is the only private bank that the Reserve Bank of India has permitted to have a branch outside India. The ownership was: Indian Overseas Bank (30%), Bank of Rajasthan (16%), Vysya Bank (14.66%), Federal Bank (19.67%), Karur Vysya Bank (10%), South Indian Bank (10%) and Karnataka Bank (8.67%). Bharat Overseas serves the Indian ethnic community in Thailand.
  • 1977: IOB opened a branch in Seoul.
  • 1991: Bank of Commerce (BCB), a Malaysian bank, acquired United Asian Bank (UAB). In 1999 BCB merged with Bank Bumiputra Malaysia to form Bumiputra-Commerce Bank Berhad.
INTERNET BANKING

 With"E-See" Banking, you can access your Savings,Current and Cash credit Accounts in any of our online branches from anywhere with a PC and an Internet connection. It's easy, convenient and free.

 The use of Secured Socket Layer (SSL) and 128 bit encryption provide a secure environment. Please use IE (Version 5.5 or above) or Netscape(Version 4.7 or above) for secure browsing.


E-CASH HOME SCHEME

Welcome to IOB's e-Cash Home - the service that allows you to send money right to the doorstep of your loved one in just a few clicks.

All you to have to do is
  • Register with us.
  • Provide your bank details.
  • Provide the details of the person you wish to send money to
  • and ……………leave the rest to us.
(Note: When you register for the first time, we verify your bank account for security reasons).
  • With e-Cash Home, you can look forward to:
  • Ease and Convenience of Use
  • Direct Debit of your account across 12000 banks in US
  • Delivery across any location in India
  • Competitive Exchange Rates
  • Status Tracker to show the status of your transaction
  • 24x7 customer support for your assistance and lots more!!! “
IOB’s Educational Loan is titled Vidya Jothi Scheme
SCHEMES HANDLED BY THE DEPARTMENT
  DIRECT TAX COLLECTION
  INDIRECT TAX COLLECTION
  STATE SALES TAX COLLECTION
  VARIOUS PENSION PAYMENT SCHEMES OF CENTRAL / STATE GOVT.
  8% SAVINGS (TAXABLE) BONDS 2003
  PUBLIC PROVIDENT FUND 1968
  SENIOR CITIZEN SAVINGS SCHEME 2004
OTHER SEVICES AND PRODUCTS
  • VISA International Credit Cards
  • VISA Debit Card
  • IOB Fine Gold
  • Real Time Gross Settlement (RGTS)
  • Forex Collection Services
  • Agriculture and Business Consultancy Service
  • Investment options like Mutual Funds and Shares
Besides these products and services, any info on the current interest rates, news on shares and Forex rates, address and phone number of your nearest Indian Overseas Bank Branch or ATM is all available on the official website of Indian Overseas Bank. The site also provides recruitment news and the jobs vacancy in IOB. Indian Overseas Bank provides Internet Banking Services to its customers that is an easy and time saving access to your bank account right to your tabletop. Just login to your net banking account available online on the home page of IOB website and get the banking service you desire instantly. Besides this, several customer care helpdesks are also provided in the IOB branches.


ANY BRANCH BANKING

Indian Overseas Bank introduced Any Branch Banking in Delhi in November 1998. The facility is now extended to 319 centres covering 193 branches. Intercity connectivity ensures that the facility is available between any two branches across the 319 centers Currently the service is available in 771 branches and 84 extension counters

The customer of a branch under ABB network applies to the branch for availing the ABB facility. He is issued a plastic card with a magnetic stripe. The ABB/ATM card bears the customer's photograph and signature on its reverse for the purpose of identification. The customer can now use the card and his cheque book to transact at other ABB branches. The ABB card works as an ATM card for the 306 ATMs across the country that are connected to ABB network.

ABB service is currently offered to personal customers only (individuals, joint, either/anyone or survivor) for the following transactions:


Balance enquiry

Last Five transactions

Statement of account

Cash withdrawals by the account holder for amounts between Rs.500 and Rs.25000/

Deposits by the account holder for amounts between Rs.500 and Rs.25000/.

Charges for SB accounts is Nil.  For Current account and cash credit accounts the charges are Rs.57 per transaction.(Maximum).

Multi city cheque facility:

Launched with effect from 1st September 2005.
Eligibility to avail the facility:-
  1. All customers maintaining satisfactorily operated Current Account OR Cash Credit account with a Networked Branch  are eligible to apply for this facility through the branch.
     
  2. The Cheques are personalized with the customer name’s  pre-printed and will be issued from a centralized location.
Issue of Cheques:
  1. Customer may issue the Cheque to their suppliers / beneficiaries who maintain accounts with any Bank in the 40 identified centers.
  2. Each Cheque can be drawn for a maximum amount of Rs. 5,00,000 /- (Rupees Five Lacs only).
  3. No cash withdrawal is permitted against the Cheque.
How payment would be effected?
  1. The upcountry beneficiary can present the Cheque to local branch of IOB in clearing and can get the payment locally.
  2. If the beneficiary is a customer of IOB, the Cheque would be paid instantly on line.
Where payable?
  1. The Cheques are payable at par at all networked branches of the Bank.

Banc Assurance

To Bring all yours financial requirements under one roof and  to cater to your  insurance and investment needs we have a  number of  insurance solutions on offer  in both  life and non-life space. To increase your choice of products we bring you a bouquet of insurance products,  under the Corporate Agency mode with life and non-life insurers.

LIFE INSURANCE PRODUCTS:
PERSONAL INSURANCE:
§  Walk in to any of our branches  for your personal insurance requirements .
§  We have a platter of personal Insurance products from LIC of India on offer to meet your needs.
GROUP  INSURANCE:
·              We also Offer Insurance linked products from our Bank with group insurance cover provided by LIC of India. Some of our group life products are as follows:
·              Life cover of Rs.1 Lac (Accidental Death -Rs.2 Lacs) to our account holders under IOB-Jeevan
·              Life cover for our home loan borrowers under Liability Insurance Scheme.
·              Life Cover for Students availing Educational Loans and also for their parents under Vidya Jyothi with Suraksha.
·              Life Cover for students studying in Colleges under Vidya Suraksha

   NON - LIFE INSURANCE PRODUCTS:
      Bank has entered into Corporate Agency arrangement with United India Insurance Company Ltd for distributing various non-life polices.
§       All general Insurance requirements for covering assets financed by our Bank as well as other assets cane be met through our branches by arrangement with United India Insurance Company Ltd. Any general insurance requirement of customers and others can be met by our branches.   
§        Bank also offers non-life insurance linked products to our customers. Some of our group products in the non life space are :  
§       Group Health Insurance Policy at very competitive premium as compared to standalone health policies, to our account holders- IOB HealthCare Plus. 
§       Health Cover for students studying in Colleges under Vidya Suraksha.  
§       Accident, Baggage and Health Cover for NRI Customers during their visit to India  NRI-Shield.    
MUTUAL FUND SCHEMES
      Bank is distributing mutual fund schemes of top performing Mutual Funds to cater to the investment  needs of customers and others as Corporate Distributor. We distribute all the New Fund Offers of the Mutual Funds and also facilitate investment in the ongoing schemes. Investments in mutual fund schemes of the following Mutual Funds can be routed through our  branches:
      ARN Code of Indian Overseas Bank : ARN 28003  
The Scheme: The scheme provides for Medi claim Insurance cover, which is available to all account holders maintaining a S.B. or C.D account in the age group of 18-65 years. The scheme is available to NRI customers also. However, the cover is available for treatment in hospitals in India. The Medi claim Insurance cover is provided by United India Insurance Company Ltd.

IOB Health Care

The Scheme takes care of the hospitalization expenses, subject to maximum Sum Insured, in respect of the following eventualities:
  1. Sudden illness
  2. An accident
  3. Any surgery that is required in respect of any disease.
Salient Features:
  • The health insurance cover is available for a very low premium, which is far below the normal premium if the policy is taken individually by the account holder, directly from Insurance company.
  • Entire family of account holder, spouse and two dependent children are covered under Floater policy. Even parents of account holder are covered for additional premium.
  • Coverage option from Rs.50,000 to Rs.5.00 lakh is available.
  • Upper age limit for entry is up to 65 years. However, renewals are allowed up to 80 years.
  • Pre existing diseases are not covered. However, the pre existing disease is covered in case of three continuous claim free years which include policies taken from other insurance company.
  • Ambulance charges up to Rs.1,000 is reimbursable per policy period.
  • Cost of health check up allowed @ 1.00% of sum assured after completion of 3 continuous claim free years of policy.
  • In the case of Hospitalisation of children below 12 years a lump sum amount of Rs.1,000 as out of pocket expenses to any of the parent is payable per policy period.
  • Maternity benefit and baby care expenses are also reimbursed up to 5% of sum insured.
  • Treatment of NRIs in Indian Hospitals is allowed.
  • Treatment in hospitals in Nepal and Bhutan are also covered in Indian Currency.
  • Personal Accident death cover is available for additional premium.
  • Income tax benefit is available under section 80D for the premium paid.
  • Cash less access to networked hospitals is available through Third Party Administrator (TPA).
  • In case of death in hospital, funeral expenses are reimbursed up to Rs.1000 over and above the sum insured subject to original illness/accident claim admitted under the policy.
IOB-Jeevan - Group Life Insurance Scheme in association with LIC of India
What is IOB-Jeevan Scheme: The scheme is a Group Term Assurance scheme for the account holders of Indian Overseas Bank, with very low premium offered in association with LIC of India. The insurance cover is available to account holders who pay the prescribed premium.
Who are eligible to join the scheme: You are eligible, if you are;
~Existing account holder of the Bank maintaining a Savings Bank or a Current Deposit account in your individual capacity either singly or jointly with others.
~Opened a fresh S.B. or C.D. account in your individual capacity either singly or jointly with others.
~Completed 18 years of age and not over 54 years of age.
You are eligible, if you are;~Existing account holder of the Bank maintaining a Savings Bank or a Current Deposit account in your individual capacity either singly or jointly with others.~Opened a fresh S.B. or C.D. account in your individual capacity either singly or jointly with others.~Completed 18 years of age and not over 54 years of age.
How do I become a member: All you have to do is to sign a simple Consent Letter-cum-authorisation-cum-declaration of good health. Authorise the Bank to debit your account with the premium amount and the administrative charges for the current year and every year for renewal.
All you have to do is to sign a simple Consent Letter-cum-authorisation-cum-declaration of good health. Authorise the Bank to debit your account with the premium amount and the administrative charges for the current year and every year for renewal.
What are the benefits I get by becoming a member: Your life is covered for a sum of Rs.1.00 lakh. In the unfortunate even of the account holder dying in accident or due to natural causes, the Insurance company will pay Rs.2.00 lakh to the nominee of the account holder or the legal heir(s).
The premium paid by you is eligible for tax benefit under Section 80C of Income Tax Act.
Your life is covered for a sum of Rs.1.00 lakh. In the unfortunate even of the account holder dying in accident or due to natural causes, the Insurance company will pay Rs.2.00 lakh to the nominee of the account holder or the legal heir(s).The premium paid by you is eligible for tax benefit under Section 80C of Income Tax Act.
What is the premium and other charges payable by me: The premium payable depends on your age nearer birthday at the time of enrolment or on the date of renewal. The scheme of premium is as follows:
The premium payable depends on your age nearer birthday at the time of enrolment or on the date of renewal. The scheme of premium is as follows:
The premium payable depends on your age nearer birthday at the time of enrolment or on the date of renewal. The scheme of premium is as follows:
Age nearer birthday
Premium payable per annum (Rs.)
18 years to 35 years  
180  
36 years to 50 years
288 
51 years to 54 years 
500 


Administrative charges of Rs.33 is payable along with the premium.
Is there any concession in the premium if I join the scheme midway during the policy period: The policy period starts from 1st July. If you join during August or thereafter up to June you can pay proportionate premium for the months the insurance cover is available.
The policy period starts from 1st July. If you join during August or thereafter up to June you can pay proportionate premium for the months the insurance cover is available.
If I survive the policy period, what do I get as return from the Insurance company: The policy is a pure term assurance policy which covers only life risk and there is no savings element. Therefore, no amount is payable in case the policy holder survives the policy period.
The policy is a pure term assurance policy which covers only life risk and there is no savings element. Therefore, no amount is payable in case the policy holder survives the policy period.
Is there any Medical examination required : There is no need for any medical examination. A simple declaration of Good Health will suffice, which is obtained along with the consent-cum-authorisation letter from you.
There is no need for any medical examination. A simple declaration of Good Health will suffice, which is obtained along with the consent-cum-authorisation letter from you.
Is age proof required to be given : The date of birth as given by you in the consent-cum authorisation letter is taken in to account. However, in case of dispute, the onus of proving the correctness of age will rest with the account holder/nominee.
The date of birth as given by you in the consent-cum authorisation letter is taken in to account. However, in case of dispute, the onus of proving the correctness of age will rest with the account holder/nominee.
Will any policy be issued in my name : Individual policies will not be issued. Bank will be the Master Policy holder.
: Individual policies will not be issued. Bank will be the Master Policy holder.
What are the exclusions under the scheme? : The policy is not available to persons with critical illness. The critical illness excluded by the policy are;
: The policy is not available to persons with critical illness. The critical illness excluded by the policy are;
  1. Cancer
  2. AIDS
  3. Condition requiring open chest surgery
  4. History of typical chest pain
  5. Kidney failure
  6. Brain stroke or paralysis
  7. Having undergone a major organ transplantation such as heart, lung, liver or kidney.
In case of death during the first 45 days from the date of joining, no claim will be payable except for deaths due to accident.
If I have more than one account with the Bank can I enroll under the scheme for all the accounts: You can become a member of the scheme under only one account, if you have more than one account in the same branch or different branches. In the event of more than one claim being received, claim will be paid under only one account and the premium if any recovered under other accounts will be refunded.
can become a member of the scheme under only one account, if you have more than one account in the same branch or different branches. In the event of more than one claim being received, claim will be paid under only one account and the premium if any recovered under other accounts will be refunded.
Is the cover available to joint account holders also : In the case of joint accounts, cover can be extended to both or all the joint account holders separately, provided each individual signs a separate consent-cum-authorisation letter which should be counter signed by all the account holders and on recovery of appropriate premium.
In the case of joint accounts, cover can be extended to both or all the joint account holders separately, provided each individual signs a separate consent-cum-authorisation letter which should be counter signed by all the account holders and on recovery of appropriate premium.
What is the claim procedure in case of death of the account holder? : On death of the member, the claim amount is payable to the nominee as given by the account holder in the consent letter. Intimation is to be given to the Branch, within 90 days from the date of death, where the account is held, through which the member had joined the scheme along with original Death Certificate for making a claim with LIC of India. In case of death due to accident, FIR, Post-mortem certificate and Final Investigation Report are to be submitted additionally. Bank will prefer the claim with LIC of India and follow up for early settlement.
: On death of the member, the claim amount is payable to the nominee as given by the account holder in the consent letter. Intimation is to be given to the Branch, within 90 days from the date of death, where the account is held, through which the member had joined the scheme along with original Death Certificate for making a claim with LIC of India. In case of death due to accident, FIR, Post-mortem certificate and Final Investigation Report are to be submitted additionally. Bank will prefer the claim with LIC of India and follow up for early settlement.
What will happen if I close the account : Once the account is closed you cease to be a member of the scheme. However, the insurance cover will be extended till the end of the policy period for which the premium has already been paid by you.
: Once the account is closed you cease to be a member of the scheme. However, the insurance cover will be extended till the end of the policy period for which the premium has already been paid by you.

CORPORATE GOVERNANCE

SEBI has revised the Clause 49 of the Listing agreement that deals with the Corporate Governance. The revised Clause 49 (1) stipulates amongst other things that a Code of Conduct for all board members and senior management (Members of the Core Management Committee, including all functional heads) has to be laid down and this should be posted in the web site of the Bank also.
Our Board at its meeting held on 30th September 2005 adopted the Code of Conduct and made it applicable to all the members of the Board and to all General Managers including the Territorial General Managers.
CORPORATE GOVERNANCE - CODE OF CONDUCT
I. Need and Objective of the Code
Clause 49 of the Listing Agreement entered into with the Stock Exchanges requires, as part of Corporate Governance the listed entities to lay down a Code of Conduct for Directors on the Board of an entity and its Senior Management. Senior Management has been defined to include personnel who are members of its Core Management and functional heads excluding the Board of Directors.
Accordingly the Bank has laid down this Code for its Directors on the Board and its Core Management (The General Managers including the Territorial General Managers)
II. Bank’s belief system
This Code of Conduct attempts to set forth the guiding principles on which the Bank shall operate and conduct its daily business with its multitudinous stakeholders, government and regulatory agencies, media, and anyone else with whom it is connected. It recognises that the Bank is a trustee and custodian of public money and in order to fulfil its fiduciary obligations and responsibilities, it has to maintain and continue to enjoy the trust and confidence of public at large.
The Bank acknowledges the need to uphold the integrity of every transaction it enters into and believes that honesty and integrity in its internal conduct would be judged by its external behaviour. The Bank shall be committed in all its actions to the interest of the countries in which it operates. The Bank is conscious of the reputation it carries amongst its customers and public at large and shall endeavour to do all it can to sustain and improve upon the same in its discharge of obligations. The Bank shall continue to initiate policies, which are customer centric and which promote financial prudence.
III. Philosophy Of The Code
The Code envisages and expects -
a. Adherence to the highest standards of honest and ethical conduct, including proper and ethical procedures in dealing with actual or apparent conflicts of interest between personal and professional relationships.
b. Full, fair, accurate, sensible, timely and meaningful disclosures in the periodic reports required to be filed by the Bank with government and regulatory agencies.
c. Compliance with applicable laws, rules and regulations.
d. To address misuse or misapplication of the Bank’s assets and resources.
e. The highest level of confidentiality and fair dealing within and outside the bank.
A. General Standards of conduct
·                     The Bank expects all Directors and members of the Core Management to exercise good judgement, to ensure the interests, safety and welfare of customers, employees, and other stakeholders and to maintain a cooperative, efficient, positive, harmonious and productive work environment and business organization. The Directors and members of the Core Management while discharging duties of their office must act honestly and with due diligence. They are expected to act with that amount of utmost care and prudence, which an ordinary person is expected to take in his/her own business. These standards need to be applied while working in the premises of the Bank, at offsite locations where the business is being conducted whether in India or abroad, at Bank-sponsored business and social events, or at any other place where they act as representatives of the Bank.
B. Conflict of Interest
·                     A "conflict of interest" occurs when personal interest of any member of the Board of Directors and of the Core Management interferes or appears to interfere in any way with the interests of the Bank. Every member of the Board of Directors and Core Management has a responsibility to the Bank, its stakeholders and to each other. Although this duty does not prevent them from engaging in personal transactions and investments, it does demand that they avoid situations where a conflict of interest might occur or appear to occur. They are expected to perform their duties in a way that they do not conflict with the Bank’s interest such as:
·         Employment / Outside Employment - The members of the Core Management are expected to devote their total attention to the business interests of the Bank. They are prohibited from engaging in any activity that interferes with their performance or responsibilities to the Bank or otherwise is in conflict with or prejudicial to the Bank.  
·         Business Interests - If any member of the Board of Directors and Core Management considers investing in securities issued by the Bank’s customer, supplier or competitor, they should ensure that these investments do not compromise their responsibilities to the Bank. Many factors including the size and nature of the investment; their ability to influence the Bank’s decisions; their access to confidential information of the Bank, or of the other entity, and the nature of the relationship between the Bank and the customer, supplier or competitor should be considered in determining whether a conflict exists. Additionally, they should disclose to the Bank any interest that they have which may conflict with the business of the Bank
·         Related Parties -. As a general rule, the Directors and members of the Core Management should avoid conducting Bank’s business with a relative or any other person or any firm, Company, Association in which the relative or other person is associated in any significant role. Relatives shall include:

           Father
Mother (including step-mother)
Son (including step-son)
Son’s wife
Daughter (including step-daughter)
Father’s father
Father’s mother
Mother’s mother
Mother’s father
Son’s son
Son’s son’s wife
Son’s daughter
Son’s Daughter’s husband
Daughter’s husband
Daughter’s son
Daughter’s son’s wife
Daughter’s daughter
Daughter’s daughter’s husband
Brother (including step-brother)
Brother’s wife
Sister (including step-sister)
Sister’s husband

·         If such a related party transaction is unavoidable, they must fully disclose the nature of the related party transaction to the appropriate authority. Any dealings with a related party must be conducted in such a way that no preferential treatment is given to that party.
  • In the case of any other transaction or situation giving rise to conflicts of interests, the appropriate authority should after due deliberations decide on its impact
 C. Applicable Laws
The Directors of the Bank and Core Management must comply with applicable laws, regulations, rules and regulatory orders. They should report any inadvertent noncompliance, if detected subsequently, to the concerned authorities.
D. Disclosure Standards
The Bank shall make full, fair, accurate, timely and meaningful disclosures in the periodic reports required to be filed with Government and Regulatory agencies. The members of Core Management of the Bank shall initiate all actions deemed necessary for proper dissemination of relevant information to the Board of Directors, Auditors and other Statutory Agencies, as may be required by applicable laws, rules and regulations.
E. Use of Bank’s Assets and Resources:
Each member of the Board of Directors and the Core Management has a duty to the Bank to advance its legitimate interests while dealing with the Bank’s assets and resources. Members of the Board of Directors and Core Management are prohibited from:
·         using corporate property, information or position for personal gain;
  • soliciting, demanding, accepting or agreeing to accept anything of value from any person while dealing with the Bank’s assets and resources;
  • acting on behalf of the Bank in any transaction in which they or any of their relative(s) have a significant direct or indirect interest.
F. Confidentiality and Fair Dealings
1. Bank’s Confidential Information
·         The Bank’s confidential information is a valuable asset. It includes all trade related information, trade secrets, confidential and privileged information, customer information, employee related information, strategies, administration, research in connection with the Bank and commercial, legal, scientific, technical data that are either provided to or made available to each member of the Board of Directors and the Core Management by the Bank either in paper form or electronic media to facilitate their work or that they are able to know or obtain access by virtue of their position with the Bank. All confidential information must be used for Bank’s business purposes only.
·         This responsibility includes the safeguarding, securing and proper disposal of confidential information in accordance with the Bank’s policy on maintaining and managing records. This obligation extends to confidential information of third parties, which the Bank has rightfully received under non-disclosure agreements.
·         To further the bank’s business, confidential information may have to be disclosed to potential business partners. Such disclosure should be made after considering its potential benefits and risks. Care should be taken to divulge the most sensitive information, only after the said potential business partner has signed a confidentiality agreement with the Bank.
·         Any publication or publicly made statement that might be perceived or construed as attributable to the Bank, made outside the scope of any appropriate authority in the Bank should include a disclaimer that the publication or statement represents the views of the specific author and not the bank.
2. Other Confidential Information -
The Bank has many kinds of business relationships with many companies and individuals. Sometimes, they will volunteer confidential information about their products or business plans to induce the Bank to enter into a business relationship. At other times, the Bank may request that a third party provide confidential information to permit the Bank to evaluate a potential business relationship with that party. Therefore, special care must be taken by the Board of Directors and members of the Core Management to handle the confidential information of others responsibly. Such confidential information should be handled in accordance with the agreements with such third parties.
·         The Bank requires that every Director and the member of Core Management, General Managers should be fully compliant with the laws, statutes, rules and regulations that have the objective of preventing unlawful gains of any nature whatsoever.
·         Directors and the members of Core Management shall not accept any offer, payment promise to pay, or authorization to pay any money, gift, or anything of value from customers, suppliers, shareholders/ stakeholders, etc. that is perceived as intended, directly or indirectly, to influence any business decision, any act or failure to act, any commission of fraud, or opportunity for the commission of any fraud.
IV. Good corporate governance practices
Each member of the Board of Directors and Core Management of the Bank should adhere to the following so as to ensure compliance with good Corporate Governance practices.
(a) Dos
·         Attend Board meetings regularly and participate in the deliberations and discussions effectively.
  • Study the Board papers thoroughly and enquire about follow-up reports on definite time schedule.
  • Involve actively in the matter of formulation of general policies
  • Be familiar with the broad objectives of the Bank and the policies laid down by the Government and the various laws and legislations.
  • Ensure confidentiality of the Bank’s agenda papers, notes and Minutes.
(b) Don’ts
  • Do not interfere in the day to day functioning of the bank
  • Do not reveal any information relating to any constituent of the Bank to anyone.
  • Do not display the logo I distinctive design of the Bank on their personal visiting cards / letter heads.
  • Do not sponsor any proposal relating to loans, investments, buildings or sites for Bank’s premises, enlistment or empanelment of contractors, architects, auditors, doctors, lawyers and other professionals etc.
  • Do not do anything, which will interfere with and / or be subversive of maintenance of discipline, good conduct and integrity of the staff.
CURRENT AND CASH CREDIT ACCOUNT RULES

Current accounts will be opened for the following types of customers:
a. Individuals ( Resident or Non-Resident )
b. Sole Proprietary concerns
c. Partnership firms
d. Hindu Undivided Families (HUF)
e. Limited Companies
f. Associations, Clubs, Societies ,Trusts Etc.,
g. Executors and Administrators
h. Liquidators
i. Other Banks, Financial corporations, Government Department
{(f) to (I) will be opened with prior approval of Regional office}
2. Cash Credit accounts will be opened as per terms and conditions of sanction of
such credit limits. The Rules prescribed for the current accounts will also apply to
Cash Credit accounts, in addition to the sanctioned terms and conditions.
3. Significance of various mandates applicable to individual current account holders
Accounts in the names of two or more
persons with Mandate as Explanation
a. Jointly by all the Depositors Operations in the account would be permitted only under
joint signatures of all the depositors, and, upon the death of
one of them, operations would not be allowed, as the
balance is payable to the survivor(s) and the legal
representatives of the deceased person. So also for the
closure of the account.
b.i
ii
Both or Survivor
All or Survivors
Operations in the account would be permitted only under
joint signatures of all the depositors as long as all the
depositors are alive, but upon the death of one of them the
balance will become payable to the survivor or survivors
without reference to the legal representatives of the
deceased. When the survivors want to close the account
they may do so subject to production of death certificate(s)
of the deceased account holder(s).
c.i Either or survivor Operations will be allowed by either of them during their
lifetime and by the survivor when one of them dies. Closure
of accounts and/or transfer to another branch would be
permitted only at the written request of both the account
holders when both are alive. When the Survivor wants to
close the Account he/she should submit the death certificate
of other deceased account holder.
c. ii Anyone or survivor Operations will be allowed by anyone of the depositors
during the lifetime of all of them. However, closure of
accounts and/or transfer to other branches would be
permitted only at written request of all the account holders.
It also follows that upon the death of one of the depositors
the balance is payable to the survivor(s) without reference
to the legal representatives of the deceased. When the
survivors wants to close the account it can be done subject
to production of death certificate(s) of the deceased account
holder(s).
d. Former or Survivor Operations will be allowed by the Former only and only on
the death of the Former, the account will be allowed to be
operated by the survivor. Closure of accounts and/or
transfer to another branch would be permitted only at the
written request of both the account holders. When Survivor
wants to close the account he/she should submit the death
certificate of the deceased Former.
4. No Interest
No interest is payable on the balances held in current account except credit balances lying
in Current/ Cash credit accounts of individuals/ proprietary concerns where the
individual/proprietor has expired, are eligible for payment of interest at Savings bank rate
for the period from the date of bank receiving notification of death till date of settlement of
claims.
5. Introduction requirements
Accounts should be properly introduced to the satisfaction of the bank. Introduction to open
an account may be typically from any one of the following
a. An existing account holder who has been maintaining a satisfactorily conducted
account for a period of at least six months
b. A respectable member of the public with acceptable bonafides and well known to the
bank.
c. Any permanent member of our bank’s staff
d. Another bank
Bank will consider opening the account after a cross verification has been done with the
introducer
6.1. To open an account
Persons desiring to open a Current or Cash Credit Account must visit the bank and discuss
their requirement with the authorised Official. They will be furnished with a copy of these
Rules and an Account opening form . The Account opening form should be duly filled-in and
signed as per the requirements mentioned therein.
Accounts opened by Individuals and Proprietary concerns with the Bank would carry a
nomination and the depositor(s) shall at the time of opening the account may nominate an
individual (not being a minor) of his/her/their choice and submit the Nomination form
annexed to the account opening form duly filled-in and signed. Nomination in two or more
names/ proportionate nomination is not allowed. The nomination can be changed any time
by submitting appropriate form to the bank.
6.2. Every party to the account is required to give two copies of latest
passport size photographs and the specimen signature clearly mentioning
the authority, for record.
6.3. All the partners/directors/trustees must sign the Account opening form
and the specimen signature sheet. The signature(s) must be legible and well
formed. All cheques and letters to the Bank must be signed strictly in
accordance with such specimen and by the authority furnished to the bank.
4. Along with the Account opening form , every party to the account is required
to furnish a CROP(Customer's Record of Profile) form duly filled in and signed
to comply with Know Your Customers norms prescribed by RBI. CROP form
would be updated every year by the customer. Bank will normally consider
accepting the following documents for identification and address proof:
o Cooking gas connection papers
o Latest Telephone charges bill
o Latest Electricity charges bill
o Voters’ ID card (in force0
o Driving license (in force)
o Passport (in force)
o Any other document approved by the bank
Originals should be submitted with self-attested photocopies. After perusal original will be
returned by the bank.
5. Every party to the account should furnish the PAN in the Account opening
form. If no PAN number is allotted to the applicant, a declaration in Form 60
(non-agriculture) or in Form 61 (agriculture) should be furnished. The relative
forms would be available with the Bank.
6. In terms of directives from Reserve Bank of India, applicants are required to
furnish full particulars of credit facilities enjoyed / being enjoyed at other
branches of IOB and/ or other banks in the Account opening form.
7. Additional Document
In addition to the above, following categories of applicants for Current and
Cash Credit accounts will furnish additional documents to the bank;
7.1. Partnership account
A copy of the partnership deed attested by all the partners. If partners have
not written down a partnership deed they can open an account with the bank
furnishing a declaration to that effect to the bank.
7.2. Hindu Undivided families (HUF)
A letter from HUF in bank’s standard format signed by the Karta and all the
major Coparceners of the HUF.
7.3. Limited Companies
a. A true copy of the certificate of incorporation
b. A true copy of the Certificate of commencement of business
c. A copy of the updated Memorandum and Articles of Association
d. A copy of the Board Resolution passed at a meeting of the Board of Directors (not by
circulation)duly certified by the Secretary of the Company for opening the account
and conduct of operations thereon. The resolution should clearly state the name of
the bank, persons authorized to open and operate the account and carry on such
other transactions as dealing with securities, powers to draw, accept, endorse etc. A
specimen copy of the resolution is available in the bank’s Account opening form.
{ a, b & c should be attested by a Director or Secretary of the company,
Original should also be submitted for perusal and return }
7.4. Liquidators
A Liquidator should produce documents to evidence his appointment as liquidator so as to
ensure that he/she has the powers to carry on the business in the course of Liquidation. In
the case of voluntary winding up, certified copy of the resolution and in the compulsory
winding up the Court Order should be produced.
7.5. Trust
a. Certified copy of the Trust Deed
b. Where a trust is a charitable trust, a certified copy of the certificate from the Charity
Commissioner
c. Where there is no Trust Deed, a certified copy of the order from a competent Court
d. Certified copy of the resolution regarding opening and conduct of the account.
e. Names of all the present trustees with bio data of each trustee
7.6. Executors and Administrators
a. Probate or Letter of Administration
7.7. Clubs, Societies(including co-operatives), Associations, Educational institutions
a. Certified true copy of the Rules, Regulations, Bye-laws ( as the case may be)
b. Certified true copy of Certificate of Registration or incorporation in the case of
Registered bodies (originals will be verified and returned)
c. A certified true copy of the Resolution (certified by the Chairman of the meeting of
the Governing Board or Managing committee or like body, at which it was passed)
authorising opening of an account with the Bank and listing out the names of office
bearers authorised to operate the account in accordance with the Rules and Bye-laws
of the body.
d. A copy of the balance sheet in the case of a co-operative society, if available.
e. In some States, the Co-operatives to open account with a bank other than a cooperative
bank need a permission from the Registrar of Co-operative societies. In
such cases a copy of such permission is to be enclosed.
7.8. Government/Semi Government departments
a. A copy of the Letter of Authority by the Head of the Department permitting the
Executive/official of the institution/department to open an account
b. A copy of the Government Notification / Order authorising the concerned official to
open and operate the account.
c. A certified copy of the Rules and Regulations, if any, framed by the
Department/Local body regarding the powers of such Executive Officers in the
matter of opening and operating Bank accounts.
8. Initial remittance
Accounts will be opened with initial remittance preferably by cash. However there is no bar
for opening accounts with customer’s self cheque on another bank.
9. Minimum balance for current accounts
Rs.2,000/- in case of branches at Metro and Urban Centres and Rs.1000/- at branches in
other Centres. For registered Tiny Sector and Village cottage industries(micro industries ) it
is Rs.1,000/- at all Centres.
In case of default in maintaining minimum balance a penalty of Rs.56/- per month will be
charged at all branches irrespective of the number of occurrence of defaults in a month.
10. Mandate
A mandate is a simple letter of authority, signed by a constituent , authorising the bank to
permit a certain named person (agent) to operate his account on his behalf. A mandate to
operate an account does not extend to overdrawing the account unless the mandate letter
specifically provides the authority to overdraw the account. Format prescribed by the bank
should be availed.
In the case of Joint accounts all the parties to the account must sign the mandate letter. In
the case of partnership firms all the partners of the firm must sign the mandate letter . A
revocation of this authority may be made in writing by any one of the joint account holders
or any partner of the firm. In case of a HUF the mandate must be signed by the Karta and
all the major coparceners. In case the mandate is to be issued in favour of a third party an
Indemnity has to be executed by the Karta and major coparceners of the HUF in the format
available with the bank.
11. Power of Attorney
A Power of attorney is to be stamped in accordance with the provisions of the Indian Stamp
Act and the various amendments effected by States and must be duly notarised. It need not
necessarily be registered with the Registrar of Assurances.
A Power of attorney executed outside India for use in India should be executed before the
Indian Embassy/High Commission in the country in which it is executed and it must be
stamped according to the Indian Stamp act within three months of its receipt in India.
The Power of attorney must be definite and no provisional or conditional clause as " during
my absence from India" or " during my illness " etc., are acceptable. In all cases, where
accounts are opened with Power of Attorney, the principal should give an undertaking in
writing that he shall, in addition to the public notice, notify the bank about
cancellation/revocation of power of attorney.
12. Additions or deletions in case of individual current account holders
A request letter signed by all the account holders should be submitted to the
bank for appropriate action. In case of an addition, Know Your Customer
procedure for the person to be added will have to be complied with. Request
for deletion of name(s) will be entertained by the bank only when atleast one
of the original account holder's name is retained in the account.
13. Operations in the account
Withdrawals from Current /Cash credit would be by Cheque leaves supplied
by the bank only. First time issue of the cheque book will be on submission of
a request letter to the bank, also agreeing to maintain the minimum balance
in the account and for penal charges in case of non maintenance of minimum
balance. Reissues of the cheque book will be against the presentation of
requisition slip provided in the cheque book, which will be presented to the
bank duly signed.
If the requisition slip is not from a current cheque book or to be handed over
to a third party, and the bank has any reason on the genuineness of the
application, then the cheque book will be sent to customer’s recorded address
by registered post at customer’s expense. A charge of Rs.2.25 per MICR
cheque leaf and Rs.1.15 for NON MICR cheque leaf will be collected from the
Constituents as and when the cheque books are issued.
At the time of receiving the cheque book from the bank, the account holder
should count the cheque leaves therein and draw attention of the bank if any
cheque leaves are missing from the book.
When an uncrossed cheque is presented for cash payment at the counters of the
bank, it should be signed by the presentor on the reverse of the cheque. The
payment cashier will ask for another signature to be made by the presentor at the
time of receiving cash.
14. The Bank will register request from the drawer regarding cheque lost, stolen
etc., but cannot guarantee depositors against loss in such cases, in the event of a
cheque being paid. Stop payment will be done with a charge of Rs.20/= per cheque.
15. In terms of section 45 Z of the Banking Regulation act 1949, banks may return a
paid instrument after obtaining a true copy thereof, by mechanical or other process
at the cost of the customer. Account holders who want to avail this facility must
execute an indemnity in a standard format prescribed by the bank.
16. Where any cheque drawn on the account is returned for want of funds charges
prevailing on the date of such return will be levied for every cheque so returned. If
such returns exceeds three times , steps will be taken to close the account with due
notice to the account holder.
17. An account holder may deposit money as often they wish. Minimum cash to be
deposited in the account is Rs.25/- in case of rural branches and Rs.50/- in other
branches. However for cash deposited for more than Rs.50000/- customer should
write down the PAN number in the deposit slip. If no PAN number is allotted to the
account holder then he should furnish Form 60 (non agriculture) or form 61
agriculture) as the case may be
Cash and cheques to be deposited should be handed over at the respective
counters and no individual outside the counters have any authority to receive
them. Customers can avail the drop box facility to deposit the cheques and in
case an acknowledgement is needed they are advised to deposit the cheques
across the counters. Customers should use the pay-in slips supplied by the
bank only.
18. Cheques, drafts, dividend warrants and other instruments drawn payable
to the depositor only will be accepted for clearing /collection subject to
charges. However in case of individual accounts and when the cheques are
crossed with other than Account Payee or Not Negotiable and endorsed in
favour of the account holder such endorsed cheques may be taken up for
collection, at the discretion of the bank.
19. Debits to customers’ accounts other than cheque may be effected in the
following circumstances
a. effecting of standing instructions
b. recovery of interest, service charges, commission etc.
c. recovery of instalments on Term loans, overdue advances, unpaid bills etc.,
d. recovery of amounts wrongly credited or wrongly omitted to be debited to the
customers accounts.
Inland bills /Export Bills can be collected/ financed through the Current/Cash credit
account subject to conditions applicable to such collections/financing.
All the financing transactions by the bank and repayments of a particular customer
would be routed through the Current account /Cash Credit and subject to terms and
conditions of sanction of such finance.
20. Temporary overdrafts may be granted by the bank at its discretion and
on request by the account holder subject to completion of formalities on prior
arrangement with the bank and not as a matter of Constituent's right.
21. Statement of Account
Statement of accounts will be sent to the constituents monthly except where
there are no transactions to advise and more frequently, if a constituent so
desires. Statements may be handed over to the accredited representatives at
the request of the customers.
If the depositor requests statement of account again for a period for which it
has already been issued , an extra charge of Rupees Twenty per ledger page
or part there of in the case of non-rural branches and Rupees Sixteen per
ledger page or part there of in the case of rural branches will be recovered.
(for accounts maintained on computers forty entries or part there of will be
treated as one ledger page).
22. Standing instructions
Standing instructions will be accepted from depositors for execution. Bank will
also register the mandate for ECS debits in a account. Cancellation of such
standing instructions or ECS debits should be duly notified to the bank.
Service charges, as applicable to the services rendered in accordance with the
standing instructions of the depositor, will be levied, in addition to recovery of
out of pocket expenses such as postage, telex/telegram/telephone charges,
Money Order commission paid, etc.
23. Ledger folio charges
Ledger folio charges will be recovered on an annual basis after providing for free ledger
folios as per rules from time to time.
24. Transfer of accounts from one branch to another
Current accounts may be transferred from one branch to another branch free of charge.
When an account holder wishes to transfer account, a written request is to be made along
with unused cheque leaves , if any, either to the present branch or to the branch to which
the account needs to be transferred. The ATM cum Credit Card should be surrendered.
Standing instructions / ECS Mandate given should be cancelled.
In case of a cash credit account subject to certain formalities to be complied with, the
account may be transferred, at the bank’s discretion and on application to the account
maintaining branch.
25. Inoperative accounts
Current accounts not operated during the past six months will be treated as dormant
accounts. In March every year all dormant accounts in which there had been no operation
for a total period of two years or more (including the period reckoned to classify them as
dormant) will be transferred to inoperative account.
In order to make the account operative, account holders (depending on the mandate)
should give a request letter to the bank. Inoperative accounts would be charged service
charges, which can be ascertained from the bank. Balance lying in an inoperative account,
which remained inoperative for five years and above will be transferred to unclaimed
balances account.
26. Death, insolvency, winding up, insanity , Garnishee order, tax
attachment orders etc.
Any such instances happening to an individual, partner, Director, Trustee, Karta or
Coparcener will have an effect on the operations of the account. A notice or knowledge is
sufficient for the bank to act . Consequences of the above occasions and procedure further
to be followed can be ascertained from the bank.
In case of death of a guarantor whose guarantee a particular cash credit account carries,
the debit operations in the account will be stopped to determine the liability of the deceased
guarantor.
27. Closure of account
A written request should be made by the account holder to the account maintaining branch
along with unused cheque leaves for closure of the account. The ATM cum Debit card should
be surrendered. Account debit authorisation for Cash Credit should be changed.
In case of joint account holders irrespective mandate (such as either or survivor,
anyone or survivor, Former or survivor etc.,) the letter should be signed by all
account holders. In case of partnership firm all the partners should sign the letter.
In case of a limited company a copy of the resolution authorising closure of
account should be submitted along with the request.
In case of a merger/taking over of a company, relevant copy of the Court order
should be produced along with the request letter. In a case where an
individual/partner/director/trustee has died and the account holder/survivor(s)
want to close the account they may approach the bank for guidance.
When an account is identified as undesirable / unremunerative account, bank will take steps
to close the account with due notice to the account holder.
28. ATM cum debit card/Internet banking/CROWN (Core banking
service)/Multicity cheques /Credit cards/Insurance Products
Account holders can avail the above services by making suitable applications with the bank
and subject to terms thereof. Under CROWN (Core banking services) the operations will be
carried out in any of the networked branches as though the customer is transacting in the
account maintaining branch subject to certain financial limits. Customers are advised to
obtain the details from the branches .
29. Value additions
Current accountholders who maintain quarterly average balance of Rupees Twenty Five
thousands are eligible for the following benefits in the subsequent quarter
a. Inland demand drafts/Mail transfers not exceeding 2 occasion's in a month for a total
amount not exceeding Rupees Ten thousands per month free of commission or
exchange.
b. Outstation cheques, drafts, interest/dividend warrants etc. (excluding hundies,
clean/supply bill/documentary bill) collected free of commission (actual postage will
be collected) for a total amount not exceeding Rupees Ten thousands per month.
30. General
a. Instant credit of collection instruments up to Rs.15,000/- is available at the
discretion of the bank and for eligible accounts.
b. Lien : The bank has a paramount lien/right of set-off on the deposit amount
and reserves the right to appropriate towards any financial obligations of the
depositor to the bank in any capacity
c. Change of resident status : The depositor(s) shall inform the bank in writing
in the event of change in resident status under Foreign Exchange
Management act
d. Maintenance of records : The computer printouts/ledgers/records pertaining
to the accounts will be destroyed periodically in accordance with Law.
31. Secrecy of the Customer accounts
Details of the customers' accounts and transactions are kept confidential by the bank. Bank
shall not divulge any information relating to the affairs of its constituents except in
circumstances in which it is in accordance with the Law or Practice and Usage customary
among banks.
32. Rules : Revisions and modifications
The bank reserves to itself the right to alter or add to these Rules at any time. Customers
are requested to enquire with the bank for the latest schedule of charges, minimum balance
requirements and changes to the above Rules or may be directed by the information in the
notice boards.

Bank's Policy on Acceptance and operations of deposit accounts from Individuals (non-business)
1. Preamble: Based on the recommendations of the Committee on Procedures and Performance Audit on Public Services- Banking Operations, a transparent and comprehensive policy has been formulated on all aspects of acceptance and operations of a deposit account from individuals (non-business). The Reserve Bank of India is empowered to issue directives/advices on interest rates on deposits and other aspects regarding conduct of deposit accounts from time to time. This policy document on deposits outlines the guiding principles in respect of formulation of various deposit products offered by the Bank and terms and conditions governing the conduct of the account.
2. Applicability: This policy applies to all types of deposits, such as term deposits including recurring deposits, Savings Bank deposits and Current Deposits received from individuals, both in single name and joint names of two or more individuals. The deposits accepted by all branches/offices of the bank including Extension Counters and Satellite Branches are covered by this policy.
3.Observance of IBA code for Banking Practice: All Branches/offices, Extension Counters and satellite Branches of the Bank subscribe to all aspects of the IBA Code for Banking Practice relating to the acceptance and operations of deposit accounts evolved by Indian Banks' Association and currently in force. The Bank also reiterates its commitment to individual customers outlined in Bankers' Fair Practice Code of Indian Banks' Association.
4. Opening of deposit accounts:
A. Rupee Deposits: Deposits are accepted from individuals in single name or jointly in the names of two or more individuals, subject to proper identification and introduction in accordance with the principles of Know Your Customer (KYC). The account opening form and other material required for opening the account will be provided by the Bank and branch officials will be willing to provide any information / clarification required for opening the account. In addition to the due diligence requirements under KYC norms, the Bank is required by law to obtain the Permanent Account Number (PAN) or General Index Register (GIR) number or alternatively declaration in Form no.60 or 61 as prescribed in Income Tax Act / Rules. The term deposits are accepted for a minimum period of 15 days and for a maximum period of 10 years. Deposits of Rs.1 lakh and above can be accepted for a minimum period of 7 days. Recurring Deposit is accepted for a minimum period of 6 months and for a maximum of 10 years. However, deposits received from senior citizens will carry additional interest rate of 0.75% over the Card rates for total deposits of not exceeding Rs.25 lakhs in the aggregate at the same branch or different branches. The maximum period of 10 years for acceptance of deposit may be relaxed in terms of orders of competent courts.
In the case of joint account opened in the names of more than one individual, mandate can be given for operation of the account in the following manner:
Either or Survivor: If the account is held by two individuals, it can be operated by any of the account holder and in the case of death of one of the account holder, the account operated/balance payable to the surviving account holder.
Anyone or Survivors: If the account is held by more than 2 individuals, the account can be operated by any one of the account holders or the final balance is payable to the survivors on the death of any one or more account holders.
Joint Operation: All the account holders to operate jointly. On the death of any one or more of the depositors the balance is payable to survivor(s) and legal representatives of the deceased.
The mandate can be modified at any time with the consent of all the account holders. In the case of term deposit, the mandate for operation will become operational only on or after the date of maturity.
Deposits of Non-resident Indians: Rupee Deposits are also accepted from Non-resident Indians and persons of Indian Origin. In the case of Non-resident External (NRE) accounts, all the joint account holders should be non-resident Indians or persons of Indian Origin. In the case of Non-resident Ordinary (NRO) account, joint account with resident Indians is also permitted. In the case of Non-resident External accounts, term deposits are accepted for a minimum period of 1 year, as per RBI directive, and for a maximum period of less than 5 years. Period of deposit and interest rates in NRO accounts are the same as that of the resident deposits.
B. Foreign Currency Accounts: Foreign currency deposits are accepted from both resident and non-resident Indians. Deposits are accepted in select currencies from individuals singly or jointly by two or more individuals. The Know Your Customer norms are followed while opening foreign currency deposits also.
In the case of Foreign currency account in the name of Non-residents, all the joint account holders should be non-residents. In the case of resident foreign currency account, the deposits are opened in the form of current deposit account only and no interest is paid on the deposit. The deposits are opened in select currencies viz.GBP, USD, EURO. The minimum balance in the account should be USD 500 or its equivalent.
The Foreign currency non-resident (FCNR) account is opened in term deposits for a minimum period of 1 year and a maximum of 3 years only. The interest rate payable on FCNR deposit is linked to LIBOR rates and are revised every week. Foreign currency account is also opened in the name of returning non-resident Indians to enable them to keep their foreign currency savings brought in by them. The funds can be held in Savings Bank account without cheque facility or in term deposits not exceeding 3 years. The debits and credits and repatriation of balance in all these account are subject to FEMA regulations advised by Reserve Bank of India from time to time.
5. Minors' Account: Minors, who have completed 10 years of age and are able to read and write, can open S.B. and term deposits, which includes Recurring Deposit in their individual names. In the case of S.B. the maximum balance in such account should not exceed Rs.50,000/-. There is, however, no ceiling for term deposit accounts. Joint accounts of minors with natural or court appointed guardian could also be opened.
6. Account of Illiterate persons: Bank may open deposit account other than current account in the name of an illiterate person. No cheque book is provided in the Savings Bank account of the illiterate person. At the time of withdrawal from Savings Bank account and or repayment of term deposit the account holder should affix the thumb impression in the presence of the authorised officer of the Bank, who will verify the identity of the person.
7.Nomination facility: Nomination facility is available on all deposit accounts opened by individuals. Nomination can be made in favour of one individual only. Nomination so made can be changed / cancelled by the account holder(s) at any time. Nomination can be made in favour of a minor also.
8.Minimum amount of deposit: Depending upon the cost of operations and the kind of services / value additions offered, Bank may fix the minimum amount of deposit that will be accepted in a term deposit account including recurring deposit and the minimum balance that should always be maintained in an operated deposit account such as Savings Bank account and Current Deposit account. Currently, the minimum balance requirement for various types of deposit accounts are given in Annexure I.
In order to ensure that the minimum balance is maintained, moderate charge as given in Annexure I is levied for non-maintenance of minimum balance in Savings Bank account and Current Deposit account.
9.Charges for maintaining deposit account: While there is no charge for maintenance of term deposit accounts, nominal charges are payable on operating accounts viz. Savings Bank accounts and Current Deposit accounts. The schedule of charges are given in the table in Annexure II.
10.Interest rates on deposits: In the deregulated environment, Bank fixes the interest rates on term deposits including Recurring Deposit based on market conditions, need for mobilisation of funds and keeping in mind the cost of funds. The interest rates are subject to revision from time to time. The interest shall be calculated at quarterly rests on term deposits. In the case of term deposits with monthly interest payments, the interest shall be calculated for the quarter and paid monthly at discounted value. The interest on term deposits including Recurring deposit is calculated by the Bank in accordance with the formulae and conventions advised by Indian Banks' Associations. Bank, based on the market conditions, need for mobilisation of funds and taking into account the cost of funds, presently offers additional interest on single deposits of Rs.15 lakh and above. Whenever interest rates are revised, the revised rates are applicable to fresh deposits as well as renewal of matured deposits only.

The interest rates offered are non-discretionary and non-discriminatory and are applicable uniformly to all depositors at all branches of the Bank.

While all the Term Deposit Schemes carry fixed interest rates, Bank has a scheme offering Floating Interest Rate. The Floating Interest Rate is linked to the six month average of 5 year Government Security Rate for deposits with maturity periods of 3 years to 5 years and six month average of 10 year Government Security Rate for deposits with maturity of over 5 years to 10 years. The minimum deposit accepted under the scheme is Rs.1 lakh and in multiples of Rs.10,000. There is no limit on maximum deposit accepted. The deposits are accepted for a minimum period of 3 years upto a maximum of 10 years. Premature closure of the deposit is not allowed before completion of 3 years (10 days advance notice required for foreclosure after 3 years). The Floating Rate undergoes a change when the Government security rate also undergoes a change. The Floating rate, however, is reset twice a year on 1st March and 1st September based on the changes in the link rate. The interest rate is payable every calendar quarter. Loan can be availed against Floating Rate deposit. The deposit is accepted in select branches only for operational convenience. Transfer of deposit between branches is not permitted. Conversion from Floating rate to Fixed rate is not permitted. .
Bank has the statutory obligation to deduct tax at source if the total interest paid /payable on all term deposits held by a person exceeds the amount specified under the Income Tax Act. Bank will give a certificate for the Tax deducted at source.
The interest rate on Savings Bank deposit is currently determined by RBI and it is at present 3.50%. S.B. interest is payable every half-year in the month of February and August calculated on the minimum balance between the 10th and the last working day of every month. As per RBI regulation, Current Deposits do not attract any interest. The current interest rates are given in Annexure III.
NRE Deposits: The interest rates on NRE term deposits are fixed, as per RBI directive, not exceeding LIBOR/SWAP rates for US Dollars for corresponding maturity prevailing as on the last working day of the previous month and will be made applicable for the following month. The interest rate on NRE S.B. deposits presently will not exceed the LIBOR/SWAP rate for US Dollars for 6 months maturity. The interest rates on S.B. deposits would be fixed for each quarter based on the LIBOR/SWAP rate as on the last day of the previous quarter.
11.Method of calculation of interest: For the purpose of calculation of interest on domestic term deposit, on deposits repayable in less than three months or where the terminal quarter is incomplete, interest is paid proportionately for the actual number of days reckoning the year at 365 days.
12. Payment of interest on deposits maturing on a holiday: In respect of a term deposit maturing for payment on a Sunday or a holiday or a non-business working day, bank would pay interest at the originally contracted rate on the deposit amount for the Sunday/holiday/non-business working day, intervening between the date of the expiry of the specified term of the deposit and the date of payment of the proceeds of the deposit on the succeeding working day.
13. Rounding off transactions: All transactions including payment of interest on deposits/charging of interest on advances will be rounded off to the nearest rupee; i.e., fraction of 50 paise and above shall be rounded off to the next higher rupee and fraction of less than 50 paise shall be ignored.
14.Premature closure of term deposits: If a depositor requests the Bank in writing for closure of a term deposit before its normal maturity date, it will be acceded to, irrespective of the amount or period of deposit. The rate of interest agreed at the time of accepting the deposit will not be payable, in case of closure of deposit before the maturity date. The interest payable on such deposit will depend on the period the deposit remained with the Bank and the amount of deposit. Currently, Bank pays interest on premature closure in accordance with the chart given in Annexure IV.
15. Premature renewal of term deposits: The Bank, on a request from the depositor, would allow conversion of a term deposit, a deposit in the form of daily deposit or recurring deposit, to enable the depositor to immediately reinvest the amount lying in the aforesaid deposits with the Bank in another term deposit. The Bank would pay interest in respect of such a term deposit at the rate prevailing on the date of opening applicable for the period the deposit remained with the Bank without any premature closure charges, provided that the deposit remains with the Bank after reinvestment for a period longer than the remaining period of the original contract.
16.Overdue deposits: A term deposit, which is not either closed or renewed for a further period on the date of maturity, automatically becomes an overdue deposit. The deposit ceases to earn interest after the maturity date. However, interest can become payable on an overdue deposit during the period it remained overdue, only if the deposit is renewed for a further period from the date of presentation for renewal, subject to the terms and conditions given in Annexure V.
In order to avoid a deposit becoming overdue, Bank offers the facility of automatic renewal of term deposits, for which the depositor should give instruction to the Bank in writing, at the time of opening the deposit.
17.Issue of maturity notices for term deposits: As a matter of courtesy, and to maintain good customer relations, Bank has a system of sending intimation of impending maturity of term deposits to the depositors at the last known address. However, if for whatever reason the customer wishes not to be intimated, he/she can give necessary instructions to the Bank at the time of placing the deposit.
18.Addition / deletion of names in deposit accounts: Bank may at the request of all the joint account holders allow the addition or deletion of name/s of joint account holder/s if the circumstances so warrant or allow an individual depositor to add the name of another person as a joint account holder. However, the amount or duration of the original deposit should not undergo a change in any manner in case the deposit is a term deposit. Bank may, at its discretion, and at the request of all the joint account holders of a deposit receipt, allow the splitting up of the joint deposit, in the name of each of the joint account holders only, provided that the period and the aggregate amount of the deposit do not undergo any change.
19. Interest on deceased depositors' account: In the case of a term deposit standing in the name/s of a deceased individual depositor, the interest on such deposits is paid as follows:
  1. At the contracted rate of the deposit if the deposit is paid on the maturity date.
  2. If the payment of the deposit is claimed before maturity date, interest is paid at the appropriate rate for the period for which the deposit remained with the Bank, without charging premature closure charges.
  3. In the case of death of depositor before maturity date and amount is claimed after the date of maturity, interest is paid at contracted rate till the date of maturity and from the date of maturity to the date of payment, simple interest is paid at the applicable rate operative on the date of maturity, for the period the deposit remained with the bank beyond the date of maturity.
  4. In the case of death of the depositor after the date of maturity of the deposit, interest is paid at savings bank rate operative on the date of maturity from the date of maturity till date of payment.
  5. In the case of balances lying in current account standing in the name of a deceased individual depositor/sole proprietorship concern, interest is payable only from 1st May 1983 or from the date of death of the depositor, whichever is later, till the date of repayment to the claimant/s at the rate of interest applicable to savings deposit as on the date of payment.
20. Advances against term deposits
Bank may, at its discretion, grant advance against a term deposit receipt duly discharged standing in the name of the borrower, either singly or jointly up to 90% of deposit amount on execution of loan/security documents. Bank may also grant loan against minor's deposit whose guardian is competent to borrow on behalf of the minor and where the advance is made to the guardian of the minor in such a capacity.
21. Product approval process: New deposit products are introduced and existing products modified by the Bank after a thorough study is made of the product, similar products already existing in the market, customer expectations and the market for such a product. The views and opinions of customers received through branches/Regional Offices are taken into account while designing new products and modifying existing products. While formulating new products, the guidelines issued by Reserve Bank of India and Indian Banks' Association are taken into account. All new products and modification of existing products are approved by the Board of the Bank before being implemented.
22. Inoperative accounts: Current Deposit accounts and Savings Bank accounts in which there has been no operation for a total period of 2 years or more will be transferred to inoperative accounts. A notice will, however, be sent to the depositor before such transfer. However, the account will be made operational if the depositor wants to undertake transactions in the account. The inoperative S.B. account will attract a service charge of Rs.20/- per half year, debited in the month of September and March if the account remains inoperative even one month after issue of notice to the depositor. If the balance in the account is Rs.20 or less, the entire amount will be recovered towards service charges. S.B. accounts and Current Deposit accounts, which have remained inoperative for a total period of 5 years and term deposits not repaid or renewed for 5 years from the date of maturity, will be transferred to unclaimed balances account maintained at Central office. If the depositor desires to continue the account, it can be recalled from Central Office by the branch where the account was earlier maintained.
23.Undesirable accounts: In cases where the operations in S.B. or current deposit account are not satisfactory, Bank may decide to close the account and pay the balance in the account to the depositor, after giving due notice. Few instances, where the account can be treated as undesirable are frequent non-maintenance of minimum balance, number of operations are more and not commensurate with the balance maintained in S.B. account, cheques are being issued without adequate funds or arrangements to meet the cheque amount and the depositor is reported to be indulging in illegal or undesirable activity.
24. Deposits of Senior Citizens: Deposits received from Resident Senior Citizens, who have completed 60 years of age, are given certain additional privileges, in tune with the guidelines received from RBI. Proof of age is required for opening senior citizen deposits. Joint accounts with another senior citizen or with person who is not a senior citizen can be opened. In the latter case, the senior citizen should be the first named depositor. Deposits are accepted for a minimum period of 15 days and for maximum period of 10 years. In the case of recurring deposits, the minimum period of deposit is 6 months. Minimum deposit accepted under the scheme is Rs.5000/- and in the case of recurring deposit, the minimum monthly instalment should be Rs.100/-. Additional interest of 0.75% p.a. is payable on the senior citizen deposits on deposits aggregating to Rs.25 lakh in the same branch or at different branches. The additional interest rate of 0.75% p.a. is not payable on deposits over and above the ceiling of Rs.25 lakh if the aggregate of all deposits kept in the same branch or at different branches exceeds Rs.25 lakh.
25. Information to depositors: Bank's policy relating to opening and maintenance of deposit accounts and the various charges on such accounts and the revisions in such policy and the charges, will be informed to the depositors in the following manner.
  • The terms and conditions for opening a deposit account and the charges that will be levied on the account will be given in the account opening form for the information of the depositors before opening the account.
  • In case of any revision the revised policy/requirements and revised charges will be displayed in a prominent place in branches.
  • Additionally, depositors will be informed about the revised policy/requirement/ charges either through press releases or advertisement in print media and or by displaying in Bank's web site www.iob.com.
  • All deposit interest rates are displayed at a prominent place in all branches.
26. Redressal of complaints and grievances: Depositors having any complaint or grievance regarding the services of the Bank, which could not be settled by the counter staff can approach the Branch Manager for settlement of the complaint/grievance. Additionally, grievances can also be voiced at the open house meeting conducted on the 15th of every month at branch/Regional Offices/Central Office of the Bank. Complaints made by depositors in writing to Customer Services Department at Regional
Office or Central Office will also be attended to expeditiously. If the depositor is not satisfied with the response received from the Bank, he/she has a right to approach Banking Ombudsman appointed by Reserve Bank of India.
27. Customer Service Survey: To survive in the present competitive environment, quality of service rendered by the Bank needs to be improved constantly. By having direct interaction with customers, Bank has to gauge the satisfaction level experienced by them. Necessary adjustments are to be made in tune with the expectation of the customers. For this purpose it is absolutely necessary to conduct survey by selecting suitable branches, segmenting customers on demographic consideration, selecting thrust areas of operation etc. As a policy, the study will be conducted once in 2 years. To ensure objectivity, biennial survey will be conducted internally by our staff and by outside agencies, alternatively.
28.Triennial Audit of Customer Service: Various instructions are being issued from time to time for ensuring quality customer service at the Branches. In order to ensure whether these instructions are meticulously followed at the branch level, periodical auditing is necessitated. The audit will be conducted by Inspection from CO / Inspectorates at various centres. It will synchronise with the Inspection of Branches once in 12/18 months. Also, in deference with RBI instructions, Customer Service Audit is being conducted by Regional Offices in all the branches under their jurisdiction and a report is to be submitted to Central Office as on 31st March & 30th September every year with special focus on 25 Core recommendations of Goiporia Committee. The conduct of audit with above indicated periodicity will be in lieu of the Triennial Audit.



IOB- BANK’S COMPENSATION POLICY


Technological progress in payment and settlement systems and the qualitative changes in operational systems and processes that have been undertaken by various players in the market have enabled market forces of competition to come into play to improve efficiencies in providing better service to the users of the system. It will be the bank’s endeavour to offer services to its customers with best possible utilisation of its technology infrastructure. Withdrawal of the Reserve Bank of India instructions to banks on time frame for collection of outstation cheques, payment of interest on delayed collection of outstation cheques/instruments, with effect from 1st November 2004 had offered bank further opportunities to increase its efficiency for better performance. This compensation policy of the bank is, therefore, designed to cover areas relating to unauthorised debiting of account, payment of interest to customers for delayed collection of cheques/instruments, payment of cheques after acknowledgement of stop payment instructions, remittances within India, foreign exchange services lending, etc. The policy is based on principles of transparency and fairness in the treatment of customers.
The objective of this policy is to establish a system whereby the bank compensates the customer for any financial loss he/she might incur due to deficiency in service on the part of the bank or any act of omission or commission directly attributable to the Bank. By ensuring that the customer is compensated without having to ask for it, the bank expects instances when the customer has to approach Banking Ombudsman or any other Forum for redressal to come down significantly.
It is reiterated that the policy covers only compensation for financial losses which customers might incur due to deficiency in the services offered by the bank which can be measured directly and as such the commitments under this policy are without prejudice to any right the bank will have in defending its position before any forum duly constituted to adjudicate banker-customer disputes.
1. Unauthorised/Erroneous debit:
If the bank has raised an unauthorised/erroneous direct debit to an account, the entry will be revered immediately on being informed of the erroneous debit, after verifying the position. In the event the unauthorised/erroneous debit has resulted in a financial loss for the customer by way of reduction in the minimum balance applicable for payment of interest on saving bank deposit or payment additional interest to the bank in a loan account, the bank will compensate customer for such loss. Further, if the customer has suffered any financial loss incidental to return of a cheque or failure of direct debit instructions due to insufficiency of balance on account of the unauthorised/erroneous debit, the bank will compensate the customer to the extent of such financial losses.
In case verification of the entry reported to be erroneous by the customer does not involve a third party, the bank shall arrange to complete the process of verification within a maximum period of 7 working days from the date of reporting of erroneous debit . In case, the verification involves a third party, the bank shall complete the verification process within a maximum period of one month from the date of reporting of erroneous transaction by the customer.
Erroneous transactions reported by customers in respect of credit card operations which require reference to a merchant establishment will be handled as per rules laid down by card association.
2. ECS direct debits/other debits to accounts:
The Bank will undertake to carry out direct debit/ECS debit instructions of customers in time. In the event the bank fails to meet such commitments customer will be compensated to the extent of any financial loss the customer would incur on account of delay in carrying out the instructions/failure to carry out the instructions.
The bank would debit the customer’s account with any applicable service charge as per the schedule of charges notified by the bank. In the event the bank levies any charge in violation of the arrangement, the bank will reverse the charges when pointed out by the customer subject to scrutiny of agreed terms and conditions. Any consequential financial loss to the customer will also be compensated.
Where it is established that the bank had issued and activated a credit card without written consent of the recipient, the bank would not only reverse the charges immediately but also pay a penalty without demur to the recipient amounting to twice the value of charges reversed as per regulatory guidelines in this regard.
3. Payment of cheques after Stop Payment instructions:
In case a cheque has been paid after stop payment instruction is acknowledged by the bank, the bank shall reverse the transaction and give value dated credit to protect the interest of the customer. Any consequential financial loss to the customer will be compensated as provided under para 1 above. Such debits will be reversed within 2 working days of the customer intimating the transaction to the Bank.
4. Foreign Exchange Services:
The Bank would not compensate the customer for delays in collection of cheques designated in foreign currencies sent to foreign countries as the bank would not be able to ensure timely credit from overseas banks. It is the bank’s experience that time for collection of instruments drawn on banks in foreign countries differ from country to country and even within a country from place to place. The time norms for return of instruments cleared provisionally also vary from country to country. Bank, however, would consider upfront credit against such instrument by purchasing the cheque/instrument, provided the conduct of the account has been satisfactory in the past. However, the bank will compensate the customer for undue delays in affording credit once proceeds are credited to the Nostro Account of the bank with its correspondent. Such compensation will be given for delays beyond one week from the date of credit to Nostro Account /due date after taking into account normal cooling period stipulated. The compensation in such cases will be worked as follows:
a) Interest due for the delay in crediting proceeds as indicated in the collection policy of the Bank
b) Compensation for any possible loss on account of adverse movement in foreign exchange rate.
5. Remittances in India:
The compensation on account of delays in collection of instruments would be as indicated in bank’s collection policy which is reproduced below:
Payment of interest for delayed collection of Outstation Cheques:
As part of the compensation policy of the bank, the bank will pay interest to its customer on the amount of collection instruments in case there is delay in giving credit beyond the time period mentioned above. Such interest shall be paid without any demand from customers in all types of accounts. There shall be no distinction between instruments drawn on the bank’s own branches or on other banks for the purpose of payment of interest on delayed collection.
Interest for delayed collection shall be paid at the following rates:
a) Savings Bank rate for the period of delay beyond 7/10/14 days as the case may be in collection of outstation cheques.
b) Where the delay is beyond 14 days, interest will be paid at the rate applicable to for term deposits of the respective period.
c) In the case of extraordinary delay, i.e delay exceeding 90 days , interest will be paid at the rate of 2% above the corresponding Term deposit rate.
d) In the event of the proceeds of Cheque under collection was to be credited to an overdraft / loan account of the customer, interest will be paid at the rate applicable to the loan account. For extraordinary delays, interest will be paid at the rate of 2% above the rate applicable to the loan account.
It may be noted that interest payment as given above would be applicable only for instruments sent for collection within India.
The Bank’s compensation policy for financial loss suffered by the customers due to loss of instrument after it has been handed over to the bank for collection by the customer would also be as indicated in our collection. The same is extracted below for information:

               Cheques/Instruments lost in transit/in clearing process or at paying Bank’s Branch
In the event a Cheque or an instrument accepted for collection is lost in transit or in the clearing process or at the paying bank’s branch, the bank shall immediately on coming to know of the loss, bring the same to the notice of the accountholder so that the account holder can inform the drawer to record stop payment and also take care that the cheques, if any, issued by him/her are not dishonoured due to non-credit of the amount of the lost cheques/instruments. The bank would provide all assistance to the customer to obtain a duplicate instrument from the drawer of the Cheque.
In line with the compensation policy of the bank the bank will compensate the account holder in respect of instruments lost in transit in the following way:
a) In case intimation regarding loss of instrument is conveyed to the customer beyond the time limit stipulated for collection (7/10/14 days as the case may be) interest will be paid for the period exceeding the stipulated collection period at the rates specified above.
b) In addition, bank will pay interest on the amount of the Cheque for a further period of 15 days at Savings Bank rate to provide for likely further delay in obtaining duplicate Cheque/instrument and collection thereof.
c) The bank would also compensate the customer for any reasonable charges he/she incurs in getting duplicate Cheque/instrument upon production of receipt, in the event the instrument is to be obtained from a bank/institution who would charge a fee for issue of duplicate instrument.

6. Violation of the Code by banks agent:
In the event of receipt of any complaint from the customer that the bank’s representative/courier or Direct Selling Agent has engaged in any improper conduct or acted in violation of the Code of Bank’s Commitment to Customers which the bank has adopted voluntarily, bank shall take appropriate steps to investigate and to handle the complaint and to compensate the customer for financial losses, if any.
7. Transaction of "at par instruments" of co-operative Banks by Commercial Banks
The Reserve Bank of India has expressed concern over the lact of transparency in the arrangement for payment of "at par" instruments of co-operative banks by commercial banks resulting in dishonour of such instruments when the remitter has already paid for the instruments. In this connection it is clarified that the bank will not honour cheques drawn on current accounts maintained by other banks with it unless arrangements are made for funding cheques issued. Issuing bank should be responsible to compensate the cheque holder for non payment/delayed payment of cheques in the absence of adequate funding arrangement.
8. Force majeure
The bank shall not be liable to compensate customers for delayed credit if some unforeseen event including but not limited to civil commotion, sabotage, lockout, strike or other labour disturbances, accident, fires, natural disasters or other "Acts of God" war, damage to the Bank’s facilities or of its correspondent bank(s) absence of the usual means of communication or all types of transportation etc beyond the control of the bank prevents it from performing its obligations within the specified service delivery parameters.
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NOTE;  A perusal of the above Note will give one an idea of various facets of Banking.  It will be helpful for General Knowledge examinations and also in Bank Interviews.   Many common aspects relating to Banking will be useful for interview in other Banks also.
 This was downloaded in 2008.    PLEASE REFER IOB WEBSITE FOR FULL DETAILS.
Hence candidates who are appearing for interview in 2011 --please suggest changes to be made here after consulting 2011 figures. send email to samba.ssivan@gmail.com

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