Banking for Beginners
Content
Welcome to Bank of India!
Mission & Vision Our Mission "to provide superior, proactive banking services to niche markets globally, while providing costeffective, responsive services to others in our role as a development bank, and in so doing, meet the requirements of our stakeholders". Our Vision "to become the bank of choice for corporates, medium businesses and upmarket retail customers and to provide cost effective developmental banking for small business, mass market and rural markets"
BANKING for Beginners
CONTENTS: 1. History of the Bank 2. Introduction to Banking 3. Type of Customers 4. Private & Public Limited Companies 5. KYC & Anti money laundering 6. Deposit Products 7. Retail Credit Products 8. Third Party Products 9. Information Technology Products 10. Menu Options used in Finacle Page 2 3 4 5 6 7 9 11 12 13
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HISTORY OF THE BANK
Bank of India was founded on 7th September, 1906 by a group of eminent businessmen
from Mumbai. It was promoted by Parsis, Hindus Muslims and a Jew- all Indians. Truly a secular bank. Beginning with one office in Mumbai, with a paid up capital of Rs 50 lacs & 50 employees, the bank has made a rapid growth over the years & blossomed into mighty institution with a strong national & international presence, having 3490 domestic & 29 international branches/ offices spread over 18 countries & 1425 ATMs as on 31.03.2011. It has branches at all major financial centres of the world namely London, Paris, New York, Tokyo, Singapore, Hong Kong, Shenzen, Dubai, etc. In fact it was first Indian bank to open branch in London way back in 1946. Global business mix of the bank has reached a level of Rs 514050 Crores as on 31.03.2011. Banks all branches are fully computerized & are operating on core banking platform called Finacle. Bank has a state of the art Data Centre, certified with ISO 27001-2005 standard. It has also Global processing centre for international branches at Singapore. Bank offers all latest technology driven products to its customers. Customer service of the bank is one of the finest in the industry. With customers we believe in “Relationship beyond banking”. The bank has been rated as 2nd most trusted brands, under PSU banking category & ranked 8th in the list of Top 50 Service Brands by The Economics Times. The bank has been continuously receiving number of awards since 2008. Bank has initiated a transformational initiative called “Sankalp 10000”( To reach net profit of Rs 10,000 Crores by FY- 2015). The initiative is based on the following 3 themes: Customer First: to make a fundamental shift away from credit-centric model by deepening customer relationships, acquiring new customers & innovating. Building Winning Teams: far well diversified & profitable future growth driven by superior skills & capabilities. High performance driven culture: using efficient processes, systems and controls enabled by best- in -class technology Entire structure of the bank has been re-organised based on the above themes.
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INTRODUCTION TO BANKING Core functions of a bank are: Accepting deposits from the public which can be withdrawn by cheque or otherwise (withdrawal slip, letter, voucher) on demand, or repayable on maturity to the customers. Lending or investing funds collected from customers.
This has been defined under Section 5b of the Banking Regulation Act 1949. As per section 5c of the same Act “A banking company is a company which transacts the business of banking in India”. Banks are doing many other businesses also, e.g. we are issuing drafts, selling gold coins etc.. Section 6(1) of the Banking Regulation Act permit banks: 1. 2. 3. 4. 5. 6. 7. 8. 9. Borrowing of Money. Collecting / discounting of bills / cheques etc. Granting and Issuing of letters of credit, travellers’ cheques Conducting foreign exchange transactions. Accepting articles/ securities etc. under safe custody Providing safe deposit lockers. Undertaking remittance of money. Conducting (Central/ State) govt. transactions. Acquiring, holding, issuing on commission, underwriting and dealing in stock, shares, debentures. 10. Buying / selling & dealing in bullion. and many other acts. RBI is the primary regulator for banks. But the Central Government has also been conferred extensive powers under the RBI Act and the B.R. Act either directly or indirectly over the banks. Now that we are dealing in securities like shares and debentures, we are subject to the regulations by the Securities Exchange Board of India (SEBI). Again we have entered into Insurance Business. So we are subject to the regulations of Insurance Regulatory and Development Authority (IRDA). Then there are other authorities like Income Tax authorities, Labour Authorities etc. whose rules and regulations also are to be complied.
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TYPE OF CUSTOMERS In bank we have to deal with various type of customers, who come to the Branches either to open deposit account or borrow money from Bank. Mainly following type of customers come to branches: Minors A minor is a person who has not completed 18 years of age as per Section 3 of Indian Majority Act,1875. Banks can open different types of deposit accounts operated by natural guardian i.e. father or mother. Minor himself can open the account if he/she is above 10 years and can read and write. Major Individuals All individuals who are of sound mind and not insolvent can open any deposit account or borrow money from Bank subject to fulfillment of KYC norms and Bank/RBI norms /guidelines. Illitrate persons He/she is a person who cannot read or write. They are competent to enter in to a valid contract. We obtain thumb impression for entering into an agreement or opening an account. Photograph for identification is needed .No cheque book to be issued. Blind Persons Like other persons, the blind persons are fully competent to enter into valid contract; due to which there is no legal bar in opening accounts in their name or getting loan documents executed by them. Signature and left hand thumb impression of the blind (even for literate) must be obtained in the account opening form, which should be witnessed by a responsible person who should certify that the contents are explained to the blind person in his presence. Married Women The legal status of a married women is regulated by Hindu Succession Act 1956, Married Woman’s Property Act 1874 and Indian Succession Act 1925.She is considered to have a legal entity separate from her husband. Her marriage does not affect any right of her separate property. Partnership Firms Accounts can be opened by banks in the name of partnership firms by obtaining a copy of the partnership letter. There cannot be more than 20 partners in a non-banking firm. Account opening form should state as to who will operate the account and how it will be operated (jointly or singly).In absence of authority the account will be operated by all partners jointly.
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Private and Public Limited Cos. Important Documents required :(1) Memorandum of Association: It is also known as the Charter of the Company. Specifies relationship of the Co. with outside world and contains objectives, liability, name and scope of activities. (2) Articles of Association: It lays down the regulations for carrying the objects, activities and management of its internal affairs as defined in its Memorandum of Association. (3) Certificate of Incorporation: It is the birth certificate of a company and is issued by the Registrar of Companies to all types of companies, Pvt. and Public. (4) Certificate of Commencement of Business for Public Ltd. Company: It is issued by Registrar of Companies to all public Ltd cos after ensuring that the minimum capital required by the company is subscribed by the public. Pvt. Ltd. Cos. are not required to obtain this certificate.
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GUIDELINES ON KNOW YOUR CUSTOMER (KYC) STANDARDS – ANTI MONEY LAUNDERING MEASURES While opening any new account, we are supposed to follow ”Know Your Customer( Popularly called KYC) guidelines, for knowing and understanding the customers and their financial dealings effectively. This is also necessary for effective risk management. Following KYC guidelines, prevents banks from being used, intentionally or unintentionally by fraudsters & criminal elements for committing fraud & money laundering activities. There are four steps involved in the process: A. Customer Acceptance and Profiling : Customer Profile refers to customer’s identity, his social / financial status, nature of business activity and his clients or associates including their location. B. Customer Identification and Risk Categorisation : Here the Identity and Address Proof of the customer is to be verified. C. Monitoring of Transactions : Transactions are monitored effectively by Submission of Cash Transaction Reports (CTRs), Suspicious Transactions Reports (STRs) to the Financial Intelligence Unit-India through respective Zonal Office. D. Risk Management : All cash transactions of the value of more than rupees ten lakh; all series of cash transactions integrally connected to each other; all cash transactions where forged or counterfeit currency notes or bank notes have been used as genuine; all suspicious transactions whether or not made in cash are required to be monitored & reported. Obligation of Banks under the Prevention of Money Laundering Act, 2002 In terms of the provisions of Prevention of Money Laundering Act, 2002 (PML Act), we are required to submit Cash Transaction Reports (CTRs) to the Financial Intelligence UnitIndia (FIU-IND, every month. The report includes all cash transactions above Rs 10 lakh and all integrally connected cash transactions. The money laundering activity involves three stages viz. Placement, Layering and Integration. Hence, stringent supervision and monitoring is required to prevent money laundering.
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DEPOSIT PRODUCTS The core business of any Bank is accepting deposits for the purpose of lending and investments. Hence DEPOSITS are very important for Banking Business. The Basic type of Deposits are: 1) Savings A/C: Savings a/cs are opened by individuals or non-business organizations for savings purpose and for their routine operational requirements. The minimum balance for a non cheque book a/c is Rs.100 and a/c with cheque book is Rs.500. At present, the rate of interest on Savings Deposit is 4.00% calculated on daily products and paid half yearly in February and July every year. 2) Current A/C: Current a/cs are opened by individuals, traders, other business entities for their routine business dealings. The minimum balance requirement for a current a/c is Rs.5000.00 and no interest is paid on the deposit. Savings and Current a/cs are both low cost deposits and are popularly known as CASA Deposits. Higher percentage of CASA contributes to higher profit for the Bank. 3) Term Deposit A/C: Bank of India has various term deposits products depending on the period of deposit which can be from Min. 7 days to Max.10 years and frequency of interest payment which can be monthly, quarterly, half yearly or cumulative deposit with compounded interest. Various basic term deposit products are SDR, MIC, QIC, FDR, DBD AND RD. Rate of interest for various time periods are advised by the Head Office from time to time. Apart from the above Basic products, Bank of India regularly innovates and devises customized Deposit products to suit the needs of various groups of customers and to attract the younger generation with techno savvy products. The following are the special deposit products presently available. 1) Star Silver, Gold and Diamond S/B a/cs. 2) Star Savings Plus and Super Savings Plus a/c. 3) Star Suraksha Plus Savings a/c. 4) Star Power Salary a/c. 5) Jai Jawan Salary a/c. 6) BOI Salary Plus a/c.
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7) Star Saral Bachat A/C or No Frill a/c specially devised for financial inclusion. 8) Star Gold/Diamond/Diamond Plus a/c. 9) Star Current Plus and Super Current Plus a/c. 10)Star Current Benefit Plus A/C. 11)Star Sunidhi Tax Saving Deposit a/c. 12)Star Flexi R/D a/c. 13)Capital Gains Account Scheme 14)Senior Citizens Deposit a/c. We also have a facility of On Line Term Deposit A/C which is available to the customers who are using the Internet Banking Facility. They can open the term deposit a/c online and invest money by transferring money from their operative a/c.
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RETAIL CREDIT PRODUCTS STAR PERSONAL LOAN To meet marriage expenses of Self / Son / Daughter or a near relative dependant on the applicant; to meet the expenses related to Tours / Excursions, etc.; Medical Expenses ,Repairs / Renovation / Extension of House Property.(where Eq Mortgage charge over the property cannot be created in favour of Bank and the proponent has not raised loan against such property from any Bank/F.I./NBFC etc; any other Personal Expenses of bonafide nature as approved by the Bank, the loan can be sanctioned from our Bank up to 2 lacs on clean basis or 10 lacs on secured basis. STAR AUTOFIN SCHEME For purchase of new two wheelers/ four wheelers or for Second hand vehicle not more than 3 years old and when Comprehensive Insurance Cover is available, can be financed by bank. Maximum limits for finance for Individuals (Resident in India) is for Indian make vehicles: Rs.25 lakhs and for imported vehicles : Rs.75 lakhs and for companies and corporate entities : Rs.100 lakhs (Can be a fleet of vehicles).For Non-resident Indians Rs. 25 lakhs. The limit is subject to: (a) 24 times of gross monthly emoluments in case of salaried employees/pensioner / or 2 times of gross average annual income as per last three years IT returns. STAR EDUCATIONAL LOAN SCHEME: Students should be an Indian National and the student/ parents should be ordinarily resident of Branch area of operation. He should have Secured admission to Graduation/ Post-Graduation or professional/technical courses in India or abroad through Entrance Test/Merit based selection process and the student should not have outstanding education loan from any other institution. Need based finance subject to repaying capacity of the parents/students. ceilings: Studies in India – Maximum Rs.10.00 lacs; Studies abroad - Maximum Rs.20.00 lacs. STAR HOLIDAY LOAN: To meet the expenses (like airfare/Train/Bus charges, expenses for accommodation, sightseeing, etc.) for going for pilgrimage/tours/excursions etc. undertaken /to be undertaken by Self/spouse/children/ parents/family members/close relatives of proponent within India or abroad. Max Bank finances Rs.2 lacs on clean basis & Rs 10 lacs on fully secured basis. STAR HOME LOAN SCHEME: Home Loan finance is one of the most secured finances and our Home Loan Scheme is specially designed for middle and upper middle class people. We can finance to Salaried persons; Professionals like Doctors, Lawyers, Engineers, Chartered Accountants etc, Self-employed Persons having regular income/ regular source of income; Non Residents including P.I.O. (Person of Indian Origin);Staff Members; Farmers/ agriculturists:To purchase /construct house/ flat on ownership basis, including purchase of already constructed Flat / House which has at least 30 years of future life. To renovate/ extend (additional area) / repair existing house/ flat. To purchase a plot of land for construction of house (an undertaking should be obtained from the borrower that he would construct the house on the said plot within a period of 3 years from availment of the advance).
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Quantum of Finance: Purpose/Area 1) For construction/purchase of a house/flat a) in places with population below 1 lac b) in places with population of 1 lac and above c) in exceptional cases 2) For Additions/ Repair/Renovation/Extension 3) For purchase of plot Rs 30 lac Rs 50 lac Rs 300 lac Rs. 20 lacs Rs. 30 lacs Maximum (Revised) Limit
STAR MORTGAGE LOAN : To meet the credit needs of trade, commercial activity, other general business, professionals as also for their other bonafide purposes Bank can finance Demand Loan/Term Loan to individuals up to Rs.50 lacs and to Prop./partnership firm / Company etc. up to Rs.100/- lacs against property. A suitable declaration is to be obtained from the applicant regarding the purpose. The facility is not to be extended for speculative purposes including investing in equities or to builders/ developers/ promoters/ real estate agents.
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THIRD PARTY PRODUCTS To increase the customer base as well as to supplement the non-interest income, the bank has introduced many non- borrowing products like Bancassurance, Mutual fund and sale of Gold Coin which together form “third party products”. BANCASSURANCE: For sale of Life and Non-life insurance products we have become corporate agency of Star union Dai-ichi life insurance and National Insurance Co Ltd. The main products of Star Union Dai-ichi is a) Dhan SurakshaPolicy b) Jeevan Safar c) Dhuv Tara d) Prabhat Tara e) Aashiana suraksha for Home loan borrowers and f) Siksha Suraksha for Educational loan borrowers. Aashiana Suraksha policy provides life cover to home loan borrowers. In case of premature death of a borrower, the insurance claim money, liquidates the entire outstanding together with interest as on the date of death of the borrower. It saves the legal heirs from incurring financial liability as well as allow them to retain the house .Thus financial and Social security is provided by this policy to the borrowers. We can also finance the Premium amount incase borrower request for it. Siksha Suraksha Policy provide life cover to the student as well as co borrower . In case of premature death of student borrower, the co-borrower (generally father) is free from any financial liability. In case of co borrower’s (father) death, the insurance money takes care of outstanding amount and rest money used for students study. The main policies of National Insurance Co. Ltd are a) BOI National Sawasthya Bima policy which is a mediclaim policy, b) Yatra policy and c) Star high flier policy. BOI National Sawastha Bima policy provides cover for four members of a family viz: Husband, spouse and their two dependent children in one single policy, which is floater in nature i.e. whoever is hospitalized due to illness or accident ,the entire amount is reimbursed by the company, subject to the amount of maximum sum assured. MUTUAL FUND: In order to provide investment opportunity to our customers, bank has made tie-up arrangement with top nine mutual funds of the country. They are UTI mutual fund, IDFC mutual fund, HDFC mutual fund, Franklin Templeton mutual fund, DSP black-rock mutual fund, ING investment fund, Reliance mutual fund, Birla sun life mutual and Kotak Mahindra mutual fund. Generally their Tax saving, Equity and Balanced funds are in great demand by the customers. GOLD COINS : We are also selling 24 carat 999.9% pure gold coins which is made in Switzerland and Assay certified about its purity & weight. They come in tamper proof beautiful packing. It give additional investment opportunity to our customers who do not know finer details of purity & accuracy of weight.
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INFORMATION TECHNOLOGY PRODUCTS StarConnect- Internet banking services Bank of India’s StarConnect Internet Banking Service, is a state of the art facility, which allows customers to do banking activities from comforts of home/ office over a mouse click. With StarConnect Internet Banking Services customer can access all banking accounts with the Bank, 24 hours a day, 365 days a year, from anywhere in the world. Following activities can be done using Internet Banking Viewing /printing of account statement Fund transfer (within bank, RTGS & NEFT) Online payment Viewing demat account details Viewing credit card details/ transactions Payment of credit card bills Online fixed deposit receipts Viewing your tax credit through NSDL Online resetting /request of ATM card PIN Online request for IPO (ASBA)
BOI STAR ePAY BOI STAR ePay is a great new service that provides customers with a single point of contact for most of their recurring payment needs. Using this service, they can pay their bills and make other payments online in a secure and convenient manner. Customer will electronically receive bills, including telephone bills, electricity bills, cell-phone bills, credit card bills, insurance premiums and others and of course continue to get the physical bills from billers - just like they did before. Online share Trade Bank of India bring the comfort of Share Trading on mouse click (Online Share Trading) in association with the following Leading Stock Brokers – M/s M/s M/s M/s Asit C. Mehta Investment Intermediates Limited (ACMIIL), Ajcon Global Services Limited (AGSL), GEPL Capital Private Limited (GCPL) Karvy Stock Broking Limited (KSBL).
The on-line trading clients should have their designated bank account with any of our branch. The clients should have a demat account with our DPO. Integration of bank account,
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demat account and trading platform of the stock broker is the essential characteristic of Online trading. This can be achieved only by electronic networking through CBS channel. Therefore, the On-line trading facility is available to clients of our branches having SB, CD or OD Account with the branch Star e-Remit Star e-Remit offers the easiest way to send money from USA to India. Remitter has to enroll online with Bank of India to remit money to in India. Customer gets the best exchange rates and can remit money to any bank in India. It is fast and economical. Rediscover the experience of easy, safe and fast money transfer from USA to India with minimal charges. It uses the Automated Clearing House (ACH) direct debit programme prevalent in USA. The ACH direct debit programme is essentially based on the remitter’s authorisation to allow a bank in USA to electronically debit intended payments to his/her bank account MENU OPTIONS USED IN FINACLE
menu option commonly used in Finacle – are as under;
INVENTORY MODULE 1. 2. 3. 4. 5. 6. 7. 8.
Bank of India has Finacle software as transaction processing systems. Some important
IIM – Inventory Item Maintenance IMAUM – Inventory Movement Auth Maintenance ILCM – Inventory Location Code Maintenance IMC – Inventory Movement Between Locations ISI / ISIA - Inventory Inquiry, Split and Merge IMI - Inventory Movement Inquiry IMR - Inventory Movement Report ISR / ISRA - Inventory Status Report
CUSTOMER ACCOUNT: 9. HCUMM – Customer Master Maintenance (Verification Required) 10. HCUS – Customer Selection Screen 11. CBM – Customer Becoming Major 12. CCA - Change Customer Id of Account 13. HOAACSB – Account Opening – Savings 14. HOAACVSB – A/c. Authorization - Savings 15. HOAACOD – Open an OD account 16. HACLHM – Account Limit History maintenance
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Cheque Book Maintenance: 17. ICHB – Issue Chequebook 18. ICHBAU – Issue Chequebook Verification 19. HCHBM – Chequebook Maintenance Stop Payment Maintenance: 20. SPP – Stop Payment Processing 21. SPPAU – Stop Payment Process Verification 22. AFSM – Account Freeze Status Maintenance SIGNCAP: 23. LDIMG – Loading of Image File 24. IMGMNT – Image Verification 25. LSD – List Signature Display TRANSACTION MAINTENANCE: 26. TM – Transactions Maintenance 27. FTI – Financial Transaction Inquiry 28. TV – Transaction Posting/Verification 29. HACTODM – Temporary Overdraft Maintenance 30. HTODCS – TOD Criteria and Selection 31. ACTODI – Inquiry on TODs granted 32. TODRP – TOD Register Printing ACCOUNT CLOSURE: 33. CAAC – Close an Account 34. CAACAU – Verification of Closure account 35. CACC – Closure of Account Charge Collection STANDING INSTRUCTION: 36. HSSIM – Standing Instruction Maintenance 37. SIE – Standing Instruction Execution 38. SIETR – Sis Executed Today Report 39. SIRP – Standing Instructions Register printing 40. SIADVC – Print SI Advice to Customer 41. SICL – Print SI Covering Letter to Customer 42. CFLM – Carry-Forward List Maintenance
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CLEARING: Outward Clearing: 43. HCLZCM – Clearing Zone Code Maintenance 44. MCLZOH – Maintain Clearing Zone 45. OCLODGE – Outward Clearing Transaction Maintenance (ONS Mode) 46. OCTM – Outward Clg Transaction Maintenance (Web Mode) 47. IOCLS – Inquire On Clearing Transactions Sets 48. HOIQ – Outward Clearing Instrument Inquiry 49. HOPQ – Outward Clearing Part Tran Inquiry 50. HMARKPEN – Mark Pending (ONS Mode) 51. MARKPEND – Mark Pending (Web Mode) 52. REVPEND – Revoke Pending 53. PCLSO – Print Clearing Schedule 54. CTCM – Clearing Transaction Code Maintenance 55. ICRCM – Inward Clearing Reject Code Maintenance Inward clearing: 56. HICZCM – Inward Clearing Zone Template Maintain 57. MICZ – Maintain Inward Clearing Zone 58. HICTM – Inward clearing Transaction Maintenance (ONS – Mode) 59. ICTM – Inward Clearing Transaction Maintenance (Web Mode) TERM DEPOSITS: 60. HOAACTD – Account Opening – Term Deposits 61. HOAACVTD – Account Authorization – Term deposits 62. DRP – Deposits Receipts Print 63. DN – Due Notice 64. PLIST – Pending Installment List 65. ITR – Report for Income Tax Purposes 66. DEPMOD – Finacle Cord User Menu (Background Menu option) 67. TDREN – Term Deposit Renewal TAX DEDUCTION AT SOURCE 68. TDSCALC – TDS Calculation 69. HTDSIP – Tax Report Option (ONS Mode) 70. TDSIP – TDS Inquiry & Printing (Web Mode) 71. RFTDS – Refund TDS 72. RECSHF – Shortfall Recovery Process 73. RMTDS – Remit TDS 74. REGFLOW – Deposit Flow Regeneration 75. HTDSPROJ – Projection of Customer Level Tax
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COLLATERAL REGISTER MAINTENANCE)
MAINTAINCE
(SRM
–
SECURITY
REGISTER
76. CMM – Collateral Master Maintenance (ASM – Approved Security Maintenance) 77. HCLM – Collateral Linkage Maintenance (SRM – Security Register Maintenance) 78. CLL – Collateral Lookup (Security Register Look up) LIMIT NODE MAINTENANCE 79. HLNM – Limit Node Maintenance 80. LTL – Limit Tree Lookup 81. LNDI – Limit Node Details Inquiry 82. LNI – Limit Node Inquiry 83. LLIR – Limit Liability Inquiry/Report TERM LOAN 84. HOAACLA – Account Opening – Term Loans 85. HOAACVLA – Account Authorization – Term Loans 86. HLARA – Amendment/Rescheduling of Loans (For Modify the Flow details of a TL a/c opened) 87. HLARACR – Loans Fee Assessment, Collection and Refund Details 88. HLAWFAI – Loans Waiver of Fee and Interest 89. HLARACR – Loans Fee Assessment, Collection and Refund Details 90. HLADISB – Loan Disbursement Details 91. HLARSH – Loans Repayment Schedule Report 92. LADGEN – Loans Demand Generation Process 93. HLAOPI – Loans Overdue Position Inquiry 94. HLAGI – Loans General Inquiry 95. LALIEN – Loans Lien Process 96. LADSP – Loans Demand Satisfaction Process 97. HLASPAY – Loan Schedule Payment 98. HLAUPAY – Loan Unscheduled Payment
We wish you a bright career in Bank of India!
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Mission & Vision Our Mission "to provide superior, proactive banking services to niche markets globally, while providing costeffective, responsive services to others in our role as a development bank, and in so doing, meet the requirements of our stakeholders". Our Vision "to become the bank of choice for corporates, medium businesses and upmarket retail customers and to provide cost effective developmental banking for small business, mass market and rural markets"
BANKING for Beginners
CONTENTS: 1. History of the Bank 2. Introduction to Banking 3. Type of Customers 4. Private & Public Limited Companies 5. KYC & Anti money laundering 6. Deposit Products 7. Retail Credit Products 8. Third Party Products 9. Information Technology Products 10. Menu Options used in Finacle Page 2 3 4 5 6 7 9 11 12 13
Page 1
HISTORY OF THE BANK
Bank of India was founded on 7th September, 1906 by a group of eminent businessmen
from Mumbai. It was promoted by Parsis, Hindus Muslims and a Jew- all Indians. Truly a secular bank. Beginning with one office in Mumbai, with a paid up capital of Rs 50 lacs & 50 employees, the bank has made a rapid growth over the years & blossomed into mighty institution with a strong national & international presence, having 3490 domestic & 29 international branches/ offices spread over 18 countries & 1425 ATMs as on 31.03.2011. It has branches at all major financial centres of the world namely London, Paris, New York, Tokyo, Singapore, Hong Kong, Shenzen, Dubai, etc. In fact it was first Indian bank to open branch in London way back in 1946. Global business mix of the bank has reached a level of Rs 514050 Crores as on 31.03.2011. Banks all branches are fully computerized & are operating on core banking platform called Finacle. Bank has a state of the art Data Centre, certified with ISO 27001-2005 standard. It has also Global processing centre for international branches at Singapore. Bank offers all latest technology driven products to its customers. Customer service of the bank is one of the finest in the industry. With customers we believe in “Relationship beyond banking”. The bank has been rated as 2nd most trusted brands, under PSU banking category & ranked 8th in the list of Top 50 Service Brands by The Economics Times. The bank has been continuously receiving number of awards since 2008. Bank has initiated a transformational initiative called “Sankalp 10000”( To reach net profit of Rs 10,000 Crores by FY- 2015). The initiative is based on the following 3 themes: Customer First: to make a fundamental shift away from credit-centric model by deepening customer relationships, acquiring new customers & innovating. Building Winning Teams: far well diversified & profitable future growth driven by superior skills & capabilities. High performance driven culture: using efficient processes, systems and controls enabled by best- in -class technology Entire structure of the bank has been re-organised based on the above themes.
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INTRODUCTION TO BANKING Core functions of a bank are: Accepting deposits from the public which can be withdrawn by cheque or otherwise (withdrawal slip, letter, voucher) on demand, or repayable on maturity to the customers. Lending or investing funds collected from customers.
This has been defined under Section 5b of the Banking Regulation Act 1949. As per section 5c of the same Act “A banking company is a company which transacts the business of banking in India”. Banks are doing many other businesses also, e.g. we are issuing drafts, selling gold coins etc.. Section 6(1) of the Banking Regulation Act permit banks: 1. 2. 3. 4. 5. 6. 7. 8. 9. Borrowing of Money. Collecting / discounting of bills / cheques etc. Granting and Issuing of letters of credit, travellers’ cheques Conducting foreign exchange transactions. Accepting articles/ securities etc. under safe custody Providing safe deposit lockers. Undertaking remittance of money. Conducting (Central/ State) govt. transactions. Acquiring, holding, issuing on commission, underwriting and dealing in stock, shares, debentures. 10. Buying / selling & dealing in bullion. and many other acts. RBI is the primary regulator for banks. But the Central Government has also been conferred extensive powers under the RBI Act and the B.R. Act either directly or indirectly over the banks. Now that we are dealing in securities like shares and debentures, we are subject to the regulations by the Securities Exchange Board of India (SEBI). Again we have entered into Insurance Business. So we are subject to the regulations of Insurance Regulatory and Development Authority (IRDA). Then there are other authorities like Income Tax authorities, Labour Authorities etc. whose rules and regulations also are to be complied.
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TYPE OF CUSTOMERS In bank we have to deal with various type of customers, who come to the Branches either to open deposit account or borrow money from Bank. Mainly following type of customers come to branches: Minors A minor is a person who has not completed 18 years of age as per Section 3 of Indian Majority Act,1875. Banks can open different types of deposit accounts operated by natural guardian i.e. father or mother. Minor himself can open the account if he/she is above 10 years and can read and write. Major Individuals All individuals who are of sound mind and not insolvent can open any deposit account or borrow money from Bank subject to fulfillment of KYC norms and Bank/RBI norms /guidelines. Illitrate persons He/she is a person who cannot read or write. They are competent to enter in to a valid contract. We obtain thumb impression for entering into an agreement or opening an account. Photograph for identification is needed .No cheque book to be issued. Blind Persons Like other persons, the blind persons are fully competent to enter into valid contract; due to which there is no legal bar in opening accounts in their name or getting loan documents executed by them. Signature and left hand thumb impression of the blind (even for literate) must be obtained in the account opening form, which should be witnessed by a responsible person who should certify that the contents are explained to the blind person in his presence. Married Women The legal status of a married women is regulated by Hindu Succession Act 1956, Married Woman’s Property Act 1874 and Indian Succession Act 1925.She is considered to have a legal entity separate from her husband. Her marriage does not affect any right of her separate property. Partnership Firms Accounts can be opened by banks in the name of partnership firms by obtaining a copy of the partnership letter. There cannot be more than 20 partners in a non-banking firm. Account opening form should state as to who will operate the account and how it will be operated (jointly or singly).In absence of authority the account will be operated by all partners jointly.
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Private and Public Limited Cos. Important Documents required :(1) Memorandum of Association: It is also known as the Charter of the Company. Specifies relationship of the Co. with outside world and contains objectives, liability, name and scope of activities. (2) Articles of Association: It lays down the regulations for carrying the objects, activities and management of its internal affairs as defined in its Memorandum of Association. (3) Certificate of Incorporation: It is the birth certificate of a company and is issued by the Registrar of Companies to all types of companies, Pvt. and Public. (4) Certificate of Commencement of Business for Public Ltd. Company: It is issued by Registrar of Companies to all public Ltd cos after ensuring that the minimum capital required by the company is subscribed by the public. Pvt. Ltd. Cos. are not required to obtain this certificate.
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GUIDELINES ON KNOW YOUR CUSTOMER (KYC) STANDARDS – ANTI MONEY LAUNDERING MEASURES While opening any new account, we are supposed to follow ”Know Your Customer( Popularly called KYC) guidelines, for knowing and understanding the customers and their financial dealings effectively. This is also necessary for effective risk management. Following KYC guidelines, prevents banks from being used, intentionally or unintentionally by fraudsters & criminal elements for committing fraud & money laundering activities. There are four steps involved in the process: A. Customer Acceptance and Profiling : Customer Profile refers to customer’s identity, his social / financial status, nature of business activity and his clients or associates including their location. B. Customer Identification and Risk Categorisation : Here the Identity and Address Proof of the customer is to be verified. C. Monitoring of Transactions : Transactions are monitored effectively by Submission of Cash Transaction Reports (CTRs), Suspicious Transactions Reports (STRs) to the Financial Intelligence Unit-India through respective Zonal Office. D. Risk Management : All cash transactions of the value of more than rupees ten lakh; all series of cash transactions integrally connected to each other; all cash transactions where forged or counterfeit currency notes or bank notes have been used as genuine; all suspicious transactions whether or not made in cash are required to be monitored & reported. Obligation of Banks under the Prevention of Money Laundering Act, 2002 In terms of the provisions of Prevention of Money Laundering Act, 2002 (PML Act), we are required to submit Cash Transaction Reports (CTRs) to the Financial Intelligence UnitIndia (FIU-IND, every month. The report includes all cash transactions above Rs 10 lakh and all integrally connected cash transactions. The money laundering activity involves three stages viz. Placement, Layering and Integration. Hence, stringent supervision and monitoring is required to prevent money laundering.
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DEPOSIT PRODUCTS The core business of any Bank is accepting deposits for the purpose of lending and investments. Hence DEPOSITS are very important for Banking Business. The Basic type of Deposits are: 1) Savings A/C: Savings a/cs are opened by individuals or non-business organizations for savings purpose and for their routine operational requirements. The minimum balance for a non cheque book a/c is Rs.100 and a/c with cheque book is Rs.500. At present, the rate of interest on Savings Deposit is 4.00% calculated on daily products and paid half yearly in February and July every year. 2) Current A/C: Current a/cs are opened by individuals, traders, other business entities for their routine business dealings. The minimum balance requirement for a current a/c is Rs.5000.00 and no interest is paid on the deposit. Savings and Current a/cs are both low cost deposits and are popularly known as CASA Deposits. Higher percentage of CASA contributes to higher profit for the Bank. 3) Term Deposit A/C: Bank of India has various term deposits products depending on the period of deposit which can be from Min. 7 days to Max.10 years and frequency of interest payment which can be monthly, quarterly, half yearly or cumulative deposit with compounded interest. Various basic term deposit products are SDR, MIC, QIC, FDR, DBD AND RD. Rate of interest for various time periods are advised by the Head Office from time to time. Apart from the above Basic products, Bank of India regularly innovates and devises customized Deposit products to suit the needs of various groups of customers and to attract the younger generation with techno savvy products. The following are the special deposit products presently available. 1) Star Silver, Gold and Diamond S/B a/cs. 2) Star Savings Plus and Super Savings Plus a/c. 3) Star Suraksha Plus Savings a/c. 4) Star Power Salary a/c. 5) Jai Jawan Salary a/c. 6) BOI Salary Plus a/c.
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7) Star Saral Bachat A/C or No Frill a/c specially devised for financial inclusion. 8) Star Gold/Diamond/Diamond Plus a/c. 9) Star Current Plus and Super Current Plus a/c. 10)Star Current Benefit Plus A/C. 11)Star Sunidhi Tax Saving Deposit a/c. 12)Star Flexi R/D a/c. 13)Capital Gains Account Scheme 14)Senior Citizens Deposit a/c. We also have a facility of On Line Term Deposit A/C which is available to the customers who are using the Internet Banking Facility. They can open the term deposit a/c online and invest money by transferring money from their operative a/c.
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RETAIL CREDIT PRODUCTS STAR PERSONAL LOAN To meet marriage expenses of Self / Son / Daughter or a near relative dependant on the applicant; to meet the expenses related to Tours / Excursions, etc.; Medical Expenses ,Repairs / Renovation / Extension of House Property.(where Eq Mortgage charge over the property cannot be created in favour of Bank and the proponent has not raised loan against such property from any Bank/F.I./NBFC etc; any other Personal Expenses of bonafide nature as approved by the Bank, the loan can be sanctioned from our Bank up to 2 lacs on clean basis or 10 lacs on secured basis. STAR AUTOFIN SCHEME For purchase of new two wheelers/ four wheelers or for Second hand vehicle not more than 3 years old and when Comprehensive Insurance Cover is available, can be financed by bank. Maximum limits for finance for Individuals (Resident in India) is for Indian make vehicles: Rs.25 lakhs and for imported vehicles : Rs.75 lakhs and for companies and corporate entities : Rs.100 lakhs (Can be a fleet of vehicles).For Non-resident Indians Rs. 25 lakhs. The limit is subject to: (a) 24 times of gross monthly emoluments in case of salaried employees/pensioner / or 2 times of gross average annual income as per last three years IT returns. STAR EDUCATIONAL LOAN SCHEME: Students should be an Indian National and the student/ parents should be ordinarily resident of Branch area of operation. He should have Secured admission to Graduation/ Post-Graduation or professional/technical courses in India or abroad through Entrance Test/Merit based selection process and the student should not have outstanding education loan from any other institution. Need based finance subject to repaying capacity of the parents/students. ceilings: Studies in India – Maximum Rs.10.00 lacs; Studies abroad - Maximum Rs.20.00 lacs. STAR HOLIDAY LOAN: To meet the expenses (like airfare/Train/Bus charges, expenses for accommodation, sightseeing, etc.) for going for pilgrimage/tours/excursions etc. undertaken /to be undertaken by Self/spouse/children/ parents/family members/close relatives of proponent within India or abroad. Max Bank finances Rs.2 lacs on clean basis & Rs 10 lacs on fully secured basis. STAR HOME LOAN SCHEME: Home Loan finance is one of the most secured finances and our Home Loan Scheme is specially designed for middle and upper middle class people. We can finance to Salaried persons; Professionals like Doctors, Lawyers, Engineers, Chartered Accountants etc, Self-employed Persons having regular income/ regular source of income; Non Residents including P.I.O. (Person of Indian Origin);Staff Members; Farmers/ agriculturists:To purchase /construct house/ flat on ownership basis, including purchase of already constructed Flat / House which has at least 30 years of future life. To renovate/ extend (additional area) / repair existing house/ flat. To purchase a plot of land for construction of house (an undertaking should be obtained from the borrower that he would construct the house on the said plot within a period of 3 years from availment of the advance).
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Quantum of Finance: Purpose/Area 1) For construction/purchase of a house/flat a) in places with population below 1 lac b) in places with population of 1 lac and above c) in exceptional cases 2) For Additions/ Repair/Renovation/Extension 3) For purchase of plot Rs 30 lac Rs 50 lac Rs 300 lac Rs. 20 lacs Rs. 30 lacs Maximum (Revised) Limit
STAR MORTGAGE LOAN : To meet the credit needs of trade, commercial activity, other general business, professionals as also for their other bonafide purposes Bank can finance Demand Loan/Term Loan to individuals up to Rs.50 lacs and to Prop./partnership firm / Company etc. up to Rs.100/- lacs against property. A suitable declaration is to be obtained from the applicant regarding the purpose. The facility is not to be extended for speculative purposes including investing in equities or to builders/ developers/ promoters/ real estate agents.
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THIRD PARTY PRODUCTS To increase the customer base as well as to supplement the non-interest income, the bank has introduced many non- borrowing products like Bancassurance, Mutual fund and sale of Gold Coin which together form “third party products”. BANCASSURANCE: For sale of Life and Non-life insurance products we have become corporate agency of Star union Dai-ichi life insurance and National Insurance Co Ltd. The main products of Star Union Dai-ichi is a) Dhan SurakshaPolicy b) Jeevan Safar c) Dhuv Tara d) Prabhat Tara e) Aashiana suraksha for Home loan borrowers and f) Siksha Suraksha for Educational loan borrowers. Aashiana Suraksha policy provides life cover to home loan borrowers. In case of premature death of a borrower, the insurance claim money, liquidates the entire outstanding together with interest as on the date of death of the borrower. It saves the legal heirs from incurring financial liability as well as allow them to retain the house .Thus financial and Social security is provided by this policy to the borrowers. We can also finance the Premium amount incase borrower request for it. Siksha Suraksha Policy provide life cover to the student as well as co borrower . In case of premature death of student borrower, the co-borrower (generally father) is free from any financial liability. In case of co borrower’s (father) death, the insurance money takes care of outstanding amount and rest money used for students study. The main policies of National Insurance Co. Ltd are a) BOI National Sawasthya Bima policy which is a mediclaim policy, b) Yatra policy and c) Star high flier policy. BOI National Sawastha Bima policy provides cover for four members of a family viz: Husband, spouse and their two dependent children in one single policy, which is floater in nature i.e. whoever is hospitalized due to illness or accident ,the entire amount is reimbursed by the company, subject to the amount of maximum sum assured. MUTUAL FUND: In order to provide investment opportunity to our customers, bank has made tie-up arrangement with top nine mutual funds of the country. They are UTI mutual fund, IDFC mutual fund, HDFC mutual fund, Franklin Templeton mutual fund, DSP black-rock mutual fund, ING investment fund, Reliance mutual fund, Birla sun life mutual and Kotak Mahindra mutual fund. Generally their Tax saving, Equity and Balanced funds are in great demand by the customers. GOLD COINS : We are also selling 24 carat 999.9% pure gold coins which is made in Switzerland and Assay certified about its purity & weight. They come in tamper proof beautiful packing. It give additional investment opportunity to our customers who do not know finer details of purity & accuracy of weight.
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INFORMATION TECHNOLOGY PRODUCTS StarConnect- Internet banking services Bank of India’s StarConnect Internet Banking Service, is a state of the art facility, which allows customers to do banking activities from comforts of home/ office over a mouse click. With StarConnect Internet Banking Services customer can access all banking accounts with the Bank, 24 hours a day, 365 days a year, from anywhere in the world. Following activities can be done using Internet Banking Viewing /printing of account statement Fund transfer (within bank, RTGS & NEFT) Online payment Viewing demat account details Viewing credit card details/ transactions Payment of credit card bills Online fixed deposit receipts Viewing your tax credit through NSDL Online resetting /request of ATM card PIN Online request for IPO (ASBA)
BOI STAR ePAY BOI STAR ePay is a great new service that provides customers with a single point of contact for most of their recurring payment needs. Using this service, they can pay their bills and make other payments online in a secure and convenient manner. Customer will electronically receive bills, including telephone bills, electricity bills, cell-phone bills, credit card bills, insurance premiums and others and of course continue to get the physical bills from billers - just like they did before. Online share Trade Bank of India bring the comfort of Share Trading on mouse click (Online Share Trading) in association with the following Leading Stock Brokers – M/s M/s M/s M/s Asit C. Mehta Investment Intermediates Limited (ACMIIL), Ajcon Global Services Limited (AGSL), GEPL Capital Private Limited (GCPL) Karvy Stock Broking Limited (KSBL).
The on-line trading clients should have their designated bank account with any of our branch. The clients should have a demat account with our DPO. Integration of bank account,
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demat account and trading platform of the stock broker is the essential characteristic of Online trading. This can be achieved only by electronic networking through CBS channel. Therefore, the On-line trading facility is available to clients of our branches having SB, CD or OD Account with the branch Star e-Remit Star e-Remit offers the easiest way to send money from USA to India. Remitter has to enroll online with Bank of India to remit money to in India. Customer gets the best exchange rates and can remit money to any bank in India. It is fast and economical. Rediscover the experience of easy, safe and fast money transfer from USA to India with minimal charges. It uses the Automated Clearing House (ACH) direct debit programme prevalent in USA. The ACH direct debit programme is essentially based on the remitter’s authorisation to allow a bank in USA to electronically debit intended payments to his/her bank account MENU OPTIONS USED IN FINACLE
menu option commonly used in Finacle – are as under;
INVENTORY MODULE 1. 2. 3. 4. 5. 6. 7. 8.
Bank of India has Finacle software as transaction processing systems. Some important
IIM – Inventory Item Maintenance IMAUM – Inventory Movement Auth Maintenance ILCM – Inventory Location Code Maintenance IMC – Inventory Movement Between Locations ISI / ISIA - Inventory Inquiry, Split and Merge IMI - Inventory Movement Inquiry IMR - Inventory Movement Report ISR / ISRA - Inventory Status Report
CUSTOMER ACCOUNT: 9. HCUMM – Customer Master Maintenance (Verification Required) 10. HCUS – Customer Selection Screen 11. CBM – Customer Becoming Major 12. CCA - Change Customer Id of Account 13. HOAACSB – Account Opening – Savings 14. HOAACVSB – A/c. Authorization - Savings 15. HOAACOD – Open an OD account 16. HACLHM – Account Limit History maintenance
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Cheque Book Maintenance: 17. ICHB – Issue Chequebook 18. ICHBAU – Issue Chequebook Verification 19. HCHBM – Chequebook Maintenance Stop Payment Maintenance: 20. SPP – Stop Payment Processing 21. SPPAU – Stop Payment Process Verification 22. AFSM – Account Freeze Status Maintenance SIGNCAP: 23. LDIMG – Loading of Image File 24. IMGMNT – Image Verification 25. LSD – List Signature Display TRANSACTION MAINTENANCE: 26. TM – Transactions Maintenance 27. FTI – Financial Transaction Inquiry 28. TV – Transaction Posting/Verification 29. HACTODM – Temporary Overdraft Maintenance 30. HTODCS – TOD Criteria and Selection 31. ACTODI – Inquiry on TODs granted 32. TODRP – TOD Register Printing ACCOUNT CLOSURE: 33. CAAC – Close an Account 34. CAACAU – Verification of Closure account 35. CACC – Closure of Account Charge Collection STANDING INSTRUCTION: 36. HSSIM – Standing Instruction Maintenance 37. SIE – Standing Instruction Execution 38. SIETR – Sis Executed Today Report 39. SIRP – Standing Instructions Register printing 40. SIADVC – Print SI Advice to Customer 41. SICL – Print SI Covering Letter to Customer 42. CFLM – Carry-Forward List Maintenance
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CLEARING: Outward Clearing: 43. HCLZCM – Clearing Zone Code Maintenance 44. MCLZOH – Maintain Clearing Zone 45. OCLODGE – Outward Clearing Transaction Maintenance (ONS Mode) 46. OCTM – Outward Clg Transaction Maintenance (Web Mode) 47. IOCLS – Inquire On Clearing Transactions Sets 48. HOIQ – Outward Clearing Instrument Inquiry 49. HOPQ – Outward Clearing Part Tran Inquiry 50. HMARKPEN – Mark Pending (ONS Mode) 51. MARKPEND – Mark Pending (Web Mode) 52. REVPEND – Revoke Pending 53. PCLSO – Print Clearing Schedule 54. CTCM – Clearing Transaction Code Maintenance 55. ICRCM – Inward Clearing Reject Code Maintenance Inward clearing: 56. HICZCM – Inward Clearing Zone Template Maintain 57. MICZ – Maintain Inward Clearing Zone 58. HICTM – Inward clearing Transaction Maintenance (ONS – Mode) 59. ICTM – Inward Clearing Transaction Maintenance (Web Mode) TERM DEPOSITS: 60. HOAACTD – Account Opening – Term Deposits 61. HOAACVTD – Account Authorization – Term deposits 62. DRP – Deposits Receipts Print 63. DN – Due Notice 64. PLIST – Pending Installment List 65. ITR – Report for Income Tax Purposes 66. DEPMOD – Finacle Cord User Menu (Background Menu option) 67. TDREN – Term Deposit Renewal TAX DEDUCTION AT SOURCE 68. TDSCALC – TDS Calculation 69. HTDSIP – Tax Report Option (ONS Mode) 70. TDSIP – TDS Inquiry & Printing (Web Mode) 71. RFTDS – Refund TDS 72. RECSHF – Shortfall Recovery Process 73. RMTDS – Remit TDS 74. REGFLOW – Deposit Flow Regeneration 75. HTDSPROJ – Projection of Customer Level Tax
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COLLATERAL REGISTER MAINTENANCE)
MAINTAINCE
(SRM
–
SECURITY
REGISTER
76. CMM – Collateral Master Maintenance (ASM – Approved Security Maintenance) 77. HCLM – Collateral Linkage Maintenance (SRM – Security Register Maintenance) 78. CLL – Collateral Lookup (Security Register Look up) LIMIT NODE MAINTENANCE 79. HLNM – Limit Node Maintenance 80. LTL – Limit Tree Lookup 81. LNDI – Limit Node Details Inquiry 82. LNI – Limit Node Inquiry 83. LLIR – Limit Liability Inquiry/Report TERM LOAN 84. HOAACLA – Account Opening – Term Loans 85. HOAACVLA – Account Authorization – Term Loans 86. HLARA – Amendment/Rescheduling of Loans (For Modify the Flow details of a TL a/c opened) 87. HLARACR – Loans Fee Assessment, Collection and Refund Details 88. HLAWFAI – Loans Waiver of Fee and Interest 89. HLARACR – Loans Fee Assessment, Collection and Refund Details 90. HLADISB – Loan Disbursement Details 91. HLARSH – Loans Repayment Schedule Report 92. LADGEN – Loans Demand Generation Process 93. HLAOPI – Loans Overdue Position Inquiry 94. HLAGI – Loans General Inquiry 95. LALIEN – Loans Lien Process 96. LADSP – Loans Demand Satisfaction Process 97. HLASPAY – Loan Schedule Payment 98. HLAUPAY – Loan Unscheduled Payment
We wish you a bright career in Bank of India!
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