Study Material Promotion _Officers 26.2.2014

8/12/2019 Study Material Promotion _Officers 26.2.2014

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Study Material

for

Promotion Exercise(Updated upto 26.02.2014)

(For Promotion from JMG I to MMG II & MMG II to MMG III)

A CompilationBy

Training Centre, Bareilly

(Under the guidance of Baroda Academy, Ahmedabad)

FACULTY

Mr. P. K. Singh Chief ManagerMr. Sudhir Kumar Sr. ManagerMr. Somnath Singh Sr. Manager

(For Internal use only)


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INDEXSl.No. Subject Page No.

1 AWARENESS ABOUT OUR BANK 3

2 EMERGING TRENDS IN BANKING 15

3 LEGAL & STATUTORY PROVISIONS 18

4 RETAIL BANKING & THIRD PARTY PRODUCTS 26

5 ROLE OF TECHNOLOGY IN BANK 35

6 RURAL/AGRI. BANKING 51

7 SME BANKING 76

8 WHOLESALE BANKING 97

9 DFB, INTERNATIONAL OPS. & TREASURY 132

10 RISK MANAGEMENT 158

11 RECOVERY & NPA MANAGEMENT 166

12 HUMAN RESOURCE MANAGEMENT 180

13 RETAIL ASSET PRODUCTS: AT A GLANCE 185

Disclaimer: Though all efforts have been made to incorporate latest and correctinformation of the related topics but in case of any doubt please refer book of

instructions, reference books and circulars of the bank. This booklet is focusing

mainly the written promotion exam. within the bank looking the previous trends and

should not be considered as instruction manual.


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AWARENESS ABOUT OUR BANK

Brief History:

Bank of Baroda is having a long, eventful and glorious history of more than 105years. HH Sir, Maharaj Sayajirao-III founded the Bank on 20thJuly 1908 with

paid up capital of Rs. 10 Lac

In 1919, the Bank crossed the state frontiers and set up Mumbai Main Office

In the year 1935, Bank became a scheduled Bank

The first safe deposit lockers were provided at Baroda in 1939

At the time of independence in 1947, Bank of Baroda was a regional bank with 48

branches

Bank of Baroda was nationalized by Govt. of India on 19thJuly 1969 along with other 13Banks (Total 14 Banks were nationalized in 1969)

As many as 10 banks have been merged with Bank of Baroda during its journey so far:

Hind Bank Ltd (1958)

New Citizen Bank of India Ltd (1961)

Surat Banking Corporation (1963)

Tamil Nadu Central Bank (1964) Umbergaon People Bank (1964)

Traders Bank Limited (1988)

Bareilly Corporation Bank Ltd (1998)

Benares State Bank Ltd (2002) South Gujarat Local Area Bank Ltd (2004)

Memon Co-operative Bank Ltd. (2011)

Board Of Directors

1. Shri S.S.Mundra : Chairman & Managing Director

2. I) Shri P. Srinivas : Executive Director

II) Shri Ranjan Dhawan : Executive Director

III) Shri Bhuvanchandra

B. Joshi

: Executive Director

3. Dr. K.P. Krishnan : Director - Govt. Nominee4. Shri Sudarshan Sen : Director - RBI Nominee

5. Shri Maulin Vaishnav : Director

6. Shri Vinil Kumar Saxena : Director

7. Shri S. S. Bhandari : Director8. Shri Rajib Sekhar Sahoo : Director


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Mission Statement :

To be a top ranking National Bank of International Standards committed to

augmenting stake holders' value through concern, care and competence.

Logo Baroda Sun:

Bank introduced the existing logo Baroda Sunw.e.f 6th June, 2005. It comprises double B letter forms that hold the rays of the rising Sun, we call

this as Baroda Sun. The sun is a representation of what our bank stands for. Itis a symbol of dynamism and optimism.

The sun is the single most powerful source of light and energy. Its far reachingrays dispel darkness to illuminate everything they touch.

The single colour, compelling vermillion palette indicates hope and energy andindicates that at Bank of Baroda, we seek to be the source that will help all our

stakeholders realise their goals.

To our customer, we seek to be a one stop, reliable partner who will help them to

address different financial needs. To our employees, we offer rewarding careers

and to our investors and business partners, maximum return on their investment.

Project NAVNIRMAAN Baroda Next :

A comprehensive transformation programme called NAVNIRMAAN waslaunched by our Bank for its domestic operations on 22 June 2009.

The Bank has partnered with Mc Kinsey & Company for this programme

It is centered on our customers and our employees

It has two core elements1. Business Process Re-engineering (BPR)

2. Organization Restructuring (OR).

BPR (Business Process Re-engineering) Main Objectives Improvement in branch productivity on sales

Best-in-class service levels for customer delight

Redesign of front & back office processes & roles to reduce turnaround time

Reduction in operating costs

Organization restructuring Main Objectives Appropriate organization structure and systems to support BPR and be in line with

future business plans, at corporate, zonal and regional offices & at branches

Sustainability of change program through capability building.


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Navnirmaan having 5 key elements:1. Simplified systems and processes at branches and other offices

2. World-class back offices to support branch operations

3. Alternate Channel usage

4. Redefined organization structure and roles5. Training to Barodians for new roles

Baroda Next Branch:

Bank has launched the Baroda Next line of branches with a modular design, clear front/backoffice separation, comfortable customer waiting area, suitable front line automation and

dedicated sales and service teams at all metro and urban centers.

Baroda Next Branch would focus on:-

Redefining roles of employees to improve customer experience and

perform sales activities Centralizing non-customer facing activities

Streamlining customer flow and redesigning branch format

Automating certain front-line activities & alternate channel migration

Implementing a robust performance management system

Reporting Structure For Baroda Next Branches

Development /Repositioning under Navnirmaan project (As on 31.12.2013):

Project Navnirmaan has altogether -18- initiatives covering both Business Process

Re-engineering and Organization Re-structuring, aimed at transforming the Banksbranches into a sales and service centers through sustained Centralization to make

possible Sales growth, superior customer experience and alternate channel

migration.

Branch Head

Sales & Service

Head

Relationship

Manager

Customer

ServiceRepresentative

Branch Host

Operation Head

Universal TellerBranch Back

Office Personnel

Credit Head Forex Head


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The most important initiatives are:- Conversion of all metro and urban branches into Baroda Next

Creation of automated and lean Back Offices like:

A. City Back Office (CBO): The CBOs deal with centralized upload of clearingtransactions both inward and outward as well as government collections and ECStransactions.

[Automated cheque processing introduced at Mumbai, Surat and Ahmedabad]

B. Regional Back Office (RBO): The RBO deals with centralized processing ofaccount opening forms (AOF) and centralized processing of issuance of

Personalized Cheque Books (PCB), issuance of Debit Card and Baroda Connect toour customers. Total no. of RBO as on 31-12-2013 was 12

C. Urban Retail Loan Factory [URLF]: Centralized Retail Loan Processing centrewith specialized sales and processing officers. It works on assembly line principle.

As on 31-12-2013 Bank had 45 RLFs

D. SMELF: Centralized SME (Small and Medium Enterprise) Loan Processing centrewith specialized sales and processing officers. It works on assembly line principle.

As on 31-12-2013 Bank had 52 SMELFsE. City Sales Office (CSO): CSO has been created at every Regions to extend sales

support to city Branches and exploring the new business in the market. The sales

officer attached with CSO works as Relationship Managers for our existing and

potential customers like, Institutional, Govt. Offices, Hospitals, Corporate etc.

Some Other Important Initiative Under NAVNIRMAAN: Branch Front end Automation: The Queue Management System (QMS) &

Cheque Deposit Machine (CDS) machines are being installed at identified

branches

Credit centralization pilot (RLF/SMELF): The Retail and SME credit

centralization pilot is under progress at the Loan Factories in Baroda

Mid Corporate Vertical: Separate Mid-corporate vertical has been created

and 15 Mid-corporate branches have been opened

Roll out of enterprise-wide Sales Accountability Model Sales OperatingModel

e-Lobbies were launched in 30 locations. These lobbies operate 24X7 providingfacilities for cash withdrawal, cash deposit, cheque deposit, pass book printing and

phone banking. This facility is known as Non Stop Banking

Bank's present BPLR 14.50 % (wef. 09.02.2013)

Base Rate : 10.25 % (wef. 09.02.2013)


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Major technology Initiatives:

First PSB to receive Corporate Governance Rating (CGR-2)

Banks entire domestic, overseas and RRB framework is CBS-compliant. All domestic branches are migrated on MPLS network. New branches are directly

opened in MPLS network. Bank has IT facilities for online/offline account opening through Business

Correspondents under Financial Inclusion.

Banks retail & corporate customers enjoy several facilities under its Internet BankingDelivery Channel. The SMS alerts & RTGS/NEFT transactions are also implemented in

the Internet Banking Portal.

Bank has implemented Internet Banking in 13 of its overseas territories.

To provide safe online banking services to its customers & protect them from phishing

attacks, Bank has implemented a Fraud Management Solution. SMS alerts facility isalso provided to customers.

Bank has implemented the RapidFunds2India solution in all its major territories. Banks MobileBanking (Baroda M-Connect) provides various facilities to its customers National Unified USSD Platform is also enabled through Mobile Banking. Account

transfers through IMPS are also made available through Mobile Banking.

Internet Payment Gateway has been implemented to facilitate e-commerce

transactions in multi-currencies across the globe.

E-tax payments through ATMs are also facilitated and Mobile ATMs are introduced inseveral cities.

Bank has set up two Contact Centres in Lucknow & Baroda to fast response to the

customer queries & grievances.

Cash Management Solution is implemented to provide operational support to customersALM.

Anti-Money Laundering (AML) has been implemented in India and 23 of Banks overseasterritories.

Online Trading has been implemented in India.

Bank has implemented an Integrated Global Treasury Solution in its major territories

like U.K., UAE, Bahamas, Bahrain, Hong Kong, Singapore, Belgium, USA and India to

achieve reduced cost of operations & better fund mgmt.

Bank has a centralised SWIFT system for India & its 23 overseas territories.

Cheque Truncation System (CTS) implemented in important centres like Bhopal, Baroda,

Surat, Indore, Rajkot, Bhavnagar, Pune, etc

ACPC (Automated Cheque Processing Centre) for centralised Inward/Outwardclearing has been implemented in Mumbai, Surat and Ahmedabad.

Travel Card in foreign currency is introduced.

HRNes- A centralised database of employees for facilitating promotion, selection

exercise and automating HR policies with transparency is implemented.

Payroll- A centralised online mechanism for salary payment of employees and leave

maintenance has also been implemented.


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Online application for SME Loan enabled along-with Housing Loan, Education and Auto

Loan. Online tracking of those applications has also been enabled.

Bank has built a State-of-the-Art Data Centre conforming to Uptime Institute Tier-3

standard & a Disaster Recovery Site in different seismic zones to ensure uninterrupted

banking services delivery to customers.

Launching of Baroda Gift Card Introduced Visa Platinum Premium Debit Card

Launched Maestro Debit card

HR Shared Services (HRCPC) Launching of Career Portalof the bank Account Number Portability of SB, CA & TD account started within the bank Online Recurring Deposit Account opening with Standing Instruction enabled through E-

Banking i.e. Baroda Connect

Bunch Note Acceptor (BNA) implementation for account based

Non Personalized Debit Card has been launched

Introduction of EMV based two high end Debit Cards i.e. Rupay Platinum & Visa Platinum

Branch Network:

Domestic Branches as on 17thFeb, 2014

Metro Urban Semi-Urban Rural Total

964 826 1240 1691 4721(with over 59

million customersglobally)

Overseas Branches/ Offices 101 in 24 Countries (Excl. India)

Total ATMs 5121 (As on 31-12-2013)

Subsidiaries (Domestic):Nainital Bank Ltd., BOBCARDS Ltd., BOB Capital Market Ltd.

Associates (Domestic):

Baroda Pioneer Asset Management Company LtdIndiaFirst Life Insurance Company Limited

Baroda Uttar Pradesh Gramin Bank, Head Office - Raebareli

Baroda Rajasthan Khetriya Gramin Bank, Head Office - Ajmer

Baroda Gujarat Gramin Bank, Head Office - Bharuch


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Subsidiaries (Overseas):Bank of Baroda (Botswana) Ltd.

Bank of Baroda (Kenya) Ltd.

Bank of Baroda (Uganda) Ltd.

Bank of Baroda (Guyana) Ltd.Bank of Baroda (UK) Ltd.

Bank of Baroda (Tanzania) Ltd

Bank of Baroda (Trinidad & Tobago) Ltd.

Bank of Baroda (Ghana) Ltd.

Representative Offices (Overseas)Bank of Baroda (Thailand)

Associate (Overseas)

Indo-Zambia Bank Ltd.(Lusaka)

Composite Loan factories

Bank has moved towards a further innovative step to establish a Composite LoanFactory at Mangalore, where a prospective as well as our existing borrower can availSME and/or Retail loan under one umbrella.

Gen-Next Branches

To respond to the needs of the changing demographic profile of the country, thebank has been endeavoring to customize delivery channels especially for youth

segment. As a part of these efforts, the bank has set up innovative Gen- Nextbranches dedicatedto youth and young IT professionals at certain places.

The branch will have youth specific products and will function as a model for fusion

of Hi-tech and High-touch Banking. The Branch is offering following liabilities and assets products to the customers:

PRODUCT NAME Facility Type Amount Remark

Gen Next Junior Saving Account for

children up to 18

years

Min Average QAB is Rs 500/- Charges for non-

maintenance Rs

50/- per quarter

Gen Next Lifestyle Term Loan

(Combo Pack)

1.For F & F/New Consumer

Durables Rs 2 Lac2.New Vehicle (4 wheeler) Rs 6

Lac, Two wheeler Rs 1 Lac3 Old four wheeler (Not more
http://mypop%28%27botswana.asp%27%2C%27application%27%2C600%2C400%29/http://mypop%28%27kenya.asp%27%2C%27application%27%2C600%2C400%29/http://mypop%28%27uganda.asp%27%2C%27application%27%2C600%2C400%29/http://mypop%28%27guyana.asp%27%2C%27application%27%2C600%2C400%29/http://mypop%28%27uk.asp%27%2C%27application%27%2C600%2C400%29/http://mypop%28%27tanzania.asp%27%2C%27application%27%2C600%2C400%29/http://mypop%28%27tt.asp%27%2C%27application%27%2C600%2C400%29/http://mypop%28%27ghana.asp%27%2C%27application%27%2C600%2C400%29/http://mypop%28%27ghana.asp%27%2C%27application%27%2C600%2C400%29/http://mypop%28%27tt.asp%27%2C%27application%27%2C600%2C400%29/http://mypop%28%27tanzania.asp%27%2C%27application%27%2C600%2C400%29/http://mypop%28%27uk.asp%27%2C%27application%27%2C600%2C400%29/http://mypop%28%27guyana.asp%27%2C%27application%27%2C600%2C400%29/http://mypop%28%27uganda.asp%27%2C%27application%27%2C600%2C400%29/http://mypop%28%27kenya.asp%27%2C%27application%27%2C600%2C400%29/http://mypop%28%27botswana.asp%27%2C%27application%27%2C600%2C400%29/


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than 3 years old) Rs 4 Lac

4 New modern gadget Rs 1 Lac

(Aggregate loan amount should

not be more than Rs 8 Lac)Gen Next Power OD Facility

(This is special savingDeposit product

having an in built

feature of overdraft

5 times of net take home

monthly salary subject toMin Rs 50,000/-

Max Rs 2.00/- Lac

Gen Next Suvidha Recurring Deposit

Global Syndication Center & IMBC

1. Banks Global Syndication center at London was set up in 2000. With a view to tap the

growing business opportunities in the Middle East and South East Asia Region, bankhas set up few more Regional Syndication Centres in abroad.

2. The Bank has started a specialized outfit- International Merchant Banking Cell (IMBC)

at International Div. Mumbai to service the ever growing demand from IndianCorporates for funds from International markets. IMBC is also active in funding

Merger & Acquisitions of domestic and overseas companies by Indian Corporates. The

IMBC will arrange for syndicated loans, Bonds, FCCBs etc. And investment banking and

advisory services.

Wealth Management Services

Our Bank as part of customer centric measure initiated Wealth Management Services toprovided our HNI and affluent customer a complete financial solution at one stop. The

service has enabled our customers to buy various investment products through our

branches and is positioning our Bank as One Stop Financial Super Market.

Under Wealth Management Services currently we are offering 3rdparty products in

Bancassurance, Mutual Fund, e-Trading etc. under tie up arrangement with various

partners.

Segment Name of Tie-up Partner ProductsLife Insurance IndiaFirst Life Insurance Co. Ltd.

(Joint Venture Co. of the Bank)

Unit Linked Insurance Plan

Term Insurance Plan

Endowment Plan

Group Insurance Plan etc.Credit Life Plan

General National Insurance Co. Ltd. Baroda Health co-branded


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Insurance medi-insurance products for

hospitalization expenses

Insurance covered for assets

such as vehicle, business &

industries, live stock etc. from

various risks.Mutual Fund Baroda Pioneer Mutual Fund (Joint

venture Co. of the Bank)Growth/Equity Scheme

Income / Debt Scheme

Balance Fund

Money Market or Liquid

Fund

Gilt Fund

Index Fund

Tax Saving Scheme

Fixed Maturity Plan

UTI Mutual Fund

Birla Sunlife Mutual Fund

Reliance Mutual Fund

Sundaram BNP Paribas

Franklin Templeton Investments

Kotak Mahindra Mutual Fund

IDFC Mutual Fund

Role of Branch manager in the changing Environments:

1. Branch Managers are required to develop regularly in the area of Sale/Marketing and

Risk management

2. From largely transaction processing and inward looking role to marketing, customer

orientation and business development role.

3. Branch manager has to emerge as a role model for other staff members at the branch

to develop an effective marketing and sales team.4. To motivate and develop the team members on regular basis for qualitative and

quantitative augmentation of business

e-Payment of Taxes Enabling Non-Customers and Non-Baroda Connect Customers :

There is a special Menu in Finacle called CA118 for e-payment of Direct tax payment

module. This Menu has the following features:

1. Only Direct Taxes (Income Tax etc.) can be paid through e-mode. For payment

of taxes other than this earlier utility shall continue to be used.

2. Finacle Passwords shall be used by the makers-checkers.3. The tax shall be remitted on verification. Before the verification,

modification/deletion can be undertaken.

4. No change is possible from the back-end once the verification of transaction has

been done.5. If the verification of tax payments is not done till 19.50 hrs the transaction

shall get deleted automatically.


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6. The name fetched from the NSDL for particular PAN with challan entered by

the maker should be verified at the time of verification by the supervisor.

Advantages to Customer:- Hassle free Tax Remittance for customers and non - customers

No formalities-Registration , login ID,PW etc Online check of PAN / TAN / Assessee code

Confirm immediate Tax payment Challan Instant cyber receipt/counter foil with CIN, Payt. details , Name of the branch

Counter foil can be regenerated

Tax payment for any commissionerate available

On line Tax payment by branch on behalf of any individual , corporate etc

No limit on amount

Free of cost

Advantages to Bank / Branch:- Rs. 12/- per challan revenue

Opportunity to canvass new business from Non customer

Contact Centre Facility:

Bank has introduced a new delivery channel the Contact Centre(call centre) for deliveryof banking services through TOLL FREE PHONE. The numbers are 1800 22 33 44 or1800 102 44 55. Now, Banks customers and members of general public can call theBanks Contact Centre and seek information on their accounts, request for banking

services, enquire on banks products, interest rates, etc.

Following services can be availed Issuance of a cheque book

Enquiry about products and services

Account Enquiry Balance, Transaction, Statement of A/c, Amount in Clearing etc. Hot-listing of ATM cards

Stop payment marking / un-marking

Request for issuance of debit card

Request for re-generation of debit card PIN

Support for e-banking users like Re-generation of Baroda Connect Passwords

Re-generation of mobile banking password

On-line (paperless) TPIN generation facility

Benefits to the Customers/: Most convenient delivery channel

Services are available from 8 am to 8 pm

365 days a year, (excluding Independence Day and Republic Day)


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Free of Cost. Toll Free Number and hence No Cost

TWO Toll Free Numbers are available to ensure uninterrupted service Customers are not required to visit branch for various services.

Emergency Services Debit Card Hot-listing is easy, simple, authentic All service requests are supported by Docket Number, for further enquiry.

Professionally managed and Technology driven services Request for regeneration of Baroda Connect Password

ASBA (Application Supported by Blocked Amount)

ASBA is a process developed by the Securities and Exchange Board of India (SEBI) for

applying toIPO.In ASBA, an IPO applicant's account doesn't get debited until shares

are allotted. Qualified Institutional Buyers (QIBs) are not allowed to participate in

IPOs through ASBA facility.

ASBA process facilitates retail individual investors bidding at cut-off, with singleoption, to apply through Self Certified Syndicate Banks (SCSBs), in which the investors

have bank accounts. SCSBs are those banks which satisfy the conditions laid by SEBI.

SCSBs would accept the applications, verify the application, block the fund to theextent of bid payment amount, upload the details in the web based bidding system of

NSE, unblock once basis of allotment is finalized and transfer the amount for allotted

shares, to the issuer.

ASBA means Application Supported by Blocked Amount. ASBA is an applicationcontaining an authorisation to block the application money in the bank account, for

subscribing to an issue. If an investor is applying through ASBA, his application money

shall be debited from the bank account only if his/her application is selected forallotment after the basis of allotment is finalized, or the issue is withdrawn / failed.

It is a supplementary process of applying in Initial Public Offers (IPO), right issues and

Follow on public offers (FPO) made through book building route and co-exists with the

current process of using cheque as a mode of payment and submitting applications.

Business Figures: At a glance (Rs. in Crore)Parameter 31.03.2013 31.12.2013Total Global Business 8,02,069 8,56,218

Total Global Deposit 4,73,883 5,03,772Total Global Advances 3,28,186 3,52,446

Net Profit 4,480.72 1,048

Gross NPA (%) 2.40 3.32

Net NPA (%) 1.28 1.88

ROAA (%) 0.90 0.80

CAR (%) 13.30 12.01

Global NIM (%) 2.66 2.37
http://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Initial_public_offering


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Business Policy Guidelines (Domestic) - 2013-2014:Motto of Business Policy is BACK TO BASICSB for - Business growth (to increase the market share)A for - Asset Quality (to be kept high)S for - Solvency & Liquidity (to be maintained through proper ALM)

I for - Innovation (to be the key differentiator)C for - Customer Centricity (to be the key driver)S for - Systems & Procedures (to be continuously updated to support above pillars)


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EMERGING TRENDS IN BANKING

Regulatory Ratio at a Glance:

CRR (Sec 42, RBI Act): 4.00%, of net demand and time liabilities, to ensure liquidity and

solvency to be kept with RBI.

SLR (Sec 24 , B. R. Act): 23.00%, Cash in hand, Gold owned by bank, Balance with RBI/SBIand Investment in unencumbered approved government securities.

Bank Rate: 9.00 %, Rate at which RBI lends to Banks/FIs.

Repo Rate: 8.00 %, Injection of liquidity by RBI.

Reverse Repo Rate: 7.00 %, Absorption of liquidity by RBI.

Licensing of New Banks in the Private Sector

Bimal Jalan panelconstituted by RBI is scrutinizing applications for new bank licences

NEW LENDER GUIDELINES:

RBI said successful applicants have a year to set up a bank.

The new banks must make a stock market listing within three years.

It said the aspirants will have to set up non-operative financial-holding companies(NOFHC), which should hold a minimum 40 per cent of the equity capital in the bank.

This has to be reduced to 20 per cent within 10 years and 15 per cent in 12 years fromthe date of start of business. An NOFHC will be registered as a non-banking financial

company with RBI and will be governed separately.

At least half the directors at such holding companies shouldnt be connected to thefounder groups, RBI said. Entities, groups should have a record of sound credentialsand integrity, be financially sound with a successful track record of 10 years.

The minimum equity capital required for setting up a bank under the new rules is Rs 500

crore. Foreign shareholding shouldnt exceed 49 per cent in the first five years.

The new banks must open at least a fourth of its branches in rural areas a condition,many experts said, almost impossible to achieve.

Damodaran committee recommendations on Customer Service:

The Committee, headed by former SEBI chairman M Damodaran, was set up by the central

bank to look into the issues of customer services and evaluate the existing system of
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grievance redressal mechanism prevalent in banks, its structure and efficacy and

recommend measures for expeditious resolution of complaints.

The Reserve Bank of India (RBI) has accepted 88 out of the 230 recommendations made

by the Damodaran committee on customer services. Sources say that the 88

recommendations, where bankers had consensus, include recommendations such as banksshould sell standalone financial products and not bundle it with any other product, have

been accepted by the RBI. Some pending recommendations such as not imposing pre-

penalty on foreclosure of home loan and suggestions made on mobile and internet banking,

RBI will have a discussion with IBA.

Transaction through other BanksATM

As per the guidelines of RBI, the customer maintaining Saving Bank A/c may withdraw the

money from any Banks ATM, 5 times with ceiling of Rs.10000 per transaction during any

calendar month without any charge. Now, even balance enquiry also considered as atransaction (towards max.5 free transaction). But for such transactions certain charge

has been prescribed by RBI which is to be paid by the Customers Bank to the Bank whoseATM is being used. Also, this facility is available free of cost to only Saving bank a/c

holders and other a/c holders may enjoy this facility @Rs20 per transaction.

Dealing with Dishonoured Cheque:

As part of Customer Service guidelines, RBI has framed following Rules to be followed bybanks, in case of dishonour of cheques:

Returning of dishonoured cheques- These instruments should be dispatched to thecustomer promptly without delay, in any case within 24 hours.

Procedure for return/ dispatch of dishonoured cheques

(i) The paying bank should return such cheques presented through clearing houses strictlyas per the return discipline prescribed for respective clearing house in terms of

Uniform Regulations and Rules for Bankers Clearing Houses.(ii) In relation to cheques presented direct to the paying bank for settlement of

transaction by way of transfer between two accounts with that bank, it should returnsuch dishonoured cheques to payees/ holders immediately.

(iii) Cheques dishonoured for want of funds in respect of all accounts should be returned

along with a memo indicating therein the reason for dishonour as insufficient funds.


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Dealing with incidence of frequent dishonour

Dishonour of Cheques for above Rs.1 crore

As per our Banks Policy on Dishonour of cheques, the event of dishonour of a chequevaluing Rs.1 cr and above drawn on a particular account of the drawer on 4 occasions during

the financial year for want of sufficient funds in the account, no fresh cheque book would

be issued. The bank may also consider for closure of the current a/c at its discretion.

However, in respect of advances accounts such as cash credit or overdraft account, the

need for continuance of these credit facilities and the cheque facility relating to these

a/c should be reviewed by appropriate authority higher than the sanctioning authority.

Dishonour of Cheques for below Rs.1 crore

Under the same policy in case of dishonor of cheques on a particular account of the drawer on

6 occasions during the financial year for want of sufficient funds in the account, it has been

advised to stipulate a condition for operation of accounts with cheque book facility that in the

event of dishonor of a cheque valuing less than Rs.1.00 crore drawn , no fresh cheques book

would be issued. The branch may also consider closure of the account at its discretion.

Moreover in respect of advances accounts such as cash credit account, overdraft account, the

need for continuance or otherwise of these credit facilities and the cheque facility relating to

those accounts where cheques valuing below Rs.1 crore and drawn on a particular account of a

drawer are returned on 6 occasions during the financial year for want of sufficient funds inthe account is to be reviewed by appropriate authority higher than the sanctioning authority.Accordingly such information should be incorporated in the credit / review proposal giving

details of cheques returned, reasons, action taken etc. along with this provision of policy and

RBI guidelines for suitable action by sanctioning Authority.


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LEGAL & STATUTORY PROVISIONS

Credit Information Bureau (India) Limited (CIBIL)

1. Credit Information Bureau (I) Ltd was set-up in January 2001, as a joint venture.

2. CIBIL is a composite Credit Bureau, which caters to both commercial and consumersegments. The Consumer Credit Bureau covers credit availed by individuals while the

Commercial Credit Bureau covers credit availed by non-individuals such as partnership

firms, proprietary concerns, private and public limited companies, etc.

3. CIBIL is established with a primary purpose of information sharing between Banks and

Financial Institutions for curbing the undesired growth of NPA.

4. Banks are required to provide periodical information to CIBIL in the prescribed format.

It helps in compilation of credit information, accessible to member banks to improve

quality of credit proposals, better credit management and Credit disseminationfunction

6. Banks, FIs, SFCs, NBFCs, Housing Finance Companies and Credit Card Companies areMembers of CIBIL

7. CIBIL- Access to consumer credit information:

NEW 10 digit User-Id of any branch / Office will be as under:

CIBIL User Id : BN0503XXXXWhere XXXX denotes respective Branchs own 4 digit Sol Id.User-Id will be identical for Consumer & Commercial. However, the passwords will be

different.

Rs 50/- for Consumer Report Rs 900/- for Commercial Report

Bank has put the Home Loan portfolio on Dynamic monitoring of CIBIL and will

receive trigger/ enquiries from the activity w.e.f 18.11.2013 which will be communicated to

Branches through their Regional Authority

Branches will get data of existing standard Home Loan borrowers who have approached other

Banks for Home Loan, Personal Loan Auto Loan, Education Loan, Business Loan, Property Loan,

Over Draft and Commercial Vehicle. In case of NPA Home Loan borrowers Branches will get

information on enquires with other Banks for all type of loans.

Know Your Customer (KYC) GuidelinesThe objective of KYC/AML/CFT guidelines is to prevent banks from being used,

intentionally or unintentionally, by criminal elements for money laundering or terrorist

activities. KYC procedures also enable banks to know/understand their customers and

their financial dealings better which in turn help them manage their risks prudently.


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Key elements of KYC Policy: Customer Acceptance Policy

Customer Identification Procedures

Monitoring of Transactions

Risk Management

Customer Acceptance Policy

Must ensure that explicit guidelines are in place on the following aspects of customer

relationship in the bank:

No account is opened in anonymous or fictitious/benami name

Customer are cotegorised as low, medium and high risk based on clearly defined parameters

Required documents and other information must be collected relating to different typesofcustomers in line with the perceived risk.

Necessary checks before opening a new account profile for each new customer based onrisk categorisation

(1) Customer IdentificationBanks to obtain all necessary information to establish theidentity of each new customer based on disclosures by customers themselves. The

easy means would be documents such as passport, driving license, Armed Forces ID

cards, Income Tax PAN card, Aadhaar Card, ID card issued by Government of India,State Government accompanied by signature verification and photographs would help

to establish the identity of the person opening the account. Towards this, the

following additional details need to be collected while opening the account.

Employment details such as job specifications, name and address of the employer,

length of service etc.

Provide details about source of income and annual income.

Details of assets owned such as house, vehicle etc.

(2) For identification of an individual / corporate- The identification to be through anintroductory reference from the existing account holder / a person known to the bank

or on the basis of documents provided by the customer. Board of Directors to put inplace adequate policies to establish procedure to verify bonafide identification.

(3) Ceiling and Monitoring of Cash Transactions Banks are required to issue TCs/ DDs/MTs and TTs for Rs.50000 and above only by debit to the customers account oragainst cheques and not against cash. Further the applicants are required to furnish

PAN on application for Rs.50000 and above. A close-watch to be kept on cash

withdrawal and deposits for Rs.10 lacs and above in deposit, cash credit or overdraft

accounts and keep record of details of these large cash transactions in a separate

register.


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Finance ministry has recognized the Aadhar number issued by UIDAI as an officiallyvalid document to satisfy the KYC norms for opening of accounts. Recently, bank has also

issued a circular that at the time of opening of accounts the requirement of introduction

may be waived.

Bank has introduced a new menu option FINDCUST for identification of multiple customer

IDs for elimination and merger to single customer ID(UCIC)

Acceptance of e-KYC as a Valid Process for KYC Verification.

Bank has decided to accept e-KYC service launched by UIDAI as a valid process for

KYC verification in consultation with Unique Identification Authority of India (UIDAI). The

information authenticated and transferred by UIDAI containing demographic details andphotograph as a result of e-KYC process shall be treated as sufficient proof of Identify and

Address of the client.

Anti Money Laundering

It is conversion of money, which is illegally obtained, so as to make it appear to

originate from a legitimate source. The main objective of the Act is:

1. To prevent, combat and control money laundering.2. To confiscate and seize the property obtained from the laundered money.

3. To deal with any other issue connected with money laundering in India.

There are three independent steps or stages in Money Laundering -- Placement,Layering and Integration

A) Placement- physical disposal of bulk cash proceeds derived from illegal activityB) Layering- process of separation of illicit proceeds from their source by creating

complex layers of financial transactions it conceals the audit trail.

C) Integrationre-injection of laundered proceeds back to the economy

Punishment: Whoever commits the offence of money laundering shall be punished withthe rigorous punishment for a term not less than 3 years but which may

extend to 7 yrs and shall also liable to fine, which may extend to Rs.5

lacs.

Citizens Charter

Citizen Charter gives the customers right as well as their demands on service fromthe bank. Citizens charter covers the following:


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1. Business hours to be prominently displayed at the branches.

2. Counters to remain attended to during business hours.3. Space for customers in banking hall to be kept clean and tidy with proper seating

arrangements.

4. Branch premises to be kept clean and hygienic.

5. Time norms for common Banking transactions to be displayed prominently in theBanking Hall.

6. At large branches May I Help You counters to be located for customersconvenience.

7. Commencement of working hours of Bank staff to be 15 minutes before

commencement of Banking hours.

8. Banks name board to be clean and visible with suitable lighting arrangements.9. Branch authoritys name and designation to be displayed on Name Plate.10. Name, address, telephone number and fax numbers of Regional and Zonal

Authorities to be displayed in Banking Hall.

11. Customers Suggestions to be invited for better customer services.

Banking OMBUDSMAN Scheme:

1. Reserve Bank of India has announced the Banking Ombudsman Scheme, 1995 under

section 35 of Banking Regulation Act 1934. It was revised w.e.f. 14.6.2002 , which

has been further revised on 01.01.20062. The Ombudsman has the authority to look into the complaint in the following areas;

Any complaint relating to Banking services.

Refer the complaint to concerned bank and try to facilitate redressal or

settlement by agreement between the bank and aggrieved party.If complaint is not settled by agreement within the period of one month, pass an

award after listening to both the parties.

In the event Bank is unable to comply with the Award for any reason whatsoever,

the Bank shall file a review petition within one month from the date of receipt of

copy of award.

Any dispute between banks or bank and its constituents may be referred to for

arbitration provided disputed claim does not exceed Rs. 10 lakhs.

The time limit for award is fixed as six months from the date of first hearing.

3. For approaching to OMBUDSMAN for banking complaints following are theconditions

Bank has rejected the complaint and/or no reply within one month.

A period of 1 year has not elapsed after bank had rejected the representation.

It is not subject matter already settled by Ombudsman.

It is not pending with any court.

4. All Commercial banks, RRBs and Schedule Primary Cooperative Banks are covered.


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5. The appeal against the Award can be filed within 30 days to the Appellate

Authority (DGM RBI).

Consumer Protection Act (COPRA)

1. COPRA was initially enacted during 1986 and implemented w.e.f. 15.4.1987. The

purpose of this act was to enable the consumers to enforce his right as a

consumer through simple legal procedures. Further, on 17th December 2002, an

amendment Act 2002 has been passed and implemented w.e.f. 15th March, the

consumer day.

2. The act covers, all goods services including banking, insurance, transportation,

electricity, processing etc.

3. Any consumer individually or jointly, consumer organisation can file complaint within-2- years from the date of cause of action preferably within 3 months.

4. Legal heirs/ can continue as complaints of unfair trade practice or restrictivetrade practices against servive provider and charging of prices for the goods in

excess of the prices displayed.

5. Definition of complaint amended to include complaints of unfair trade practices or

restrictive trade practices against service provider, failure to disclose final

results of scheme of gifts & prizes amt. Prescribed fee payable on every complaint

as court fees - no fees earlier6. A person availing services for commercial purpose will not be a consumer under the

act.

7. The authority or jurisdiction are;

a) District forum for a complaint up to Rs. 20 lakhs.b) State Commission up to Rs. 100 lakhs.

c) National Commission above Rs. 100 lakhs.

8. Complaints Appeals against the orders of district forum can be entertained

only if 50 % amt awarded or Rs.25000/- 35000/- & 50000/ whichever is less

is deposited for District, State & National commission respectively.

Banking code and Standards Boards of India (BCSBI)

A comprehensive Bankers Fair Practice Code prepared by Indian bank Associationhas been used, as a bench mark standard by the BCSBI. The code provides

protection to the customers on day-to-day basis on banking operations.This is a voluntary code, which sets minimum standards of Banking practices to be

followed by banks when attending to customers. It has the following objectives 1. Promote good and fair banking practices by setting minimum standards,

2. Increase transparency3. To encourage financial institutions to achieve higher operating standards,

4. Promote cordial and fair relationship between bank and customer,


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5. Bring confidence in the banking system,

6. This code is applicable to almost all services of banks.

Securitisation and Reconstruction of Financial Assets and Enforcement ofSecurity Interest Act 2002 (SARFAESI Act 2002)

In India the enactment of SARFAESI Act 2002 enabled lending agencies (secured

creditors) to foreclose and sell underlying assets without court intervention to recover

the secured debt. For the purpose of the Act, Minimum Scale IV officer is designated as

Authorized Officer for the purpose of enforcement of security interest under the Actto realize / recover banks dues in case of a NPA-account.

1. In case of default, the Authorized Officers can write to the borrower [section 13

(2)] to repay secured debts within 60 days from the date of notice.Possessionnotice to be given under Sec 13(4).

2. In the course of enforcement of security interests by the bank as SecuredCreditor, all costs, charges and direct & incidental expenses thereto, propertyincurred shall be recoverable from the borrower and money received by the bank

as secured creditor shall first be appropriated towards meeting this expenses

and thereafter for discharge of the banks secured debts.3. In case of number of secured creditor being more than 1, the above said rights

shall be exercised only when 60% or more (in value terms) secured creditors

agree to exercise of the rights;

4. The Record Date shall be the date agreed upon by the secured creditorsrepresenting not less than 60% of the amount outstanding;

5. If dues of secured creditors are not fully settled / recovered out of / from saleproceeds of secured assets, secured creditors may file an application in DRT or in

a competent court;6. The secured creditor shall be entitled to proceed against the guarantors or sell

pledged assets without first taking any of the measures or possession & sale of

the borrowers / the guarantors assets.7. Followings are not covered under the Act:Pledge of moveable and lien on any

goods and security. Aircraft; Vessels; Hire purchase/lease, etc.; Any Security

interest not exceeding Rs.1 lacs; Agri. land.

Recent changes under the act in 2012: Banks and ARC are allowed to convert any part of the debt of the defaulting company

into equity. Such a conversion would imply that lenders or ARC can be an equity holder

rather than a creditor of the company.

It also allows banks to bid for any immovable property they have put out for auctionthemselves, if they do not receive any bid during the auction. Also, bank is free to sell

these properties to a new bidder at a later date to clear off the debt completely.


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Bank can file the reply of objection raised by borrower within 15 days instead of 7

days.

Assets Reconstruction Company:

1. The SARFAESI Act permits an ARC to commence operations with a minimum net ownedfunds of Rs.2 crores. ARC is required capital adequacy ration of 15%.

2. ARC can acquire financial assets by way of simple agreement from the banks/FIs

subject to some terms and conditions or by issuance of bonds and debentures to the

originating Banks/FIs. All rights of lender vest in ARC after acquiring the assets and

become party to all the contracts/deeds /agreement, etc.

3. An ARC can undertake (i) enforcement of security interest (ii) takeover or change of

management of the borrower (iii) undertake sale or lease of the borrowers' business

and (iv) enter into settlements and reschedule the debt

Base rate for Bank loans:

RBI has advised Banks to switch over from Bench mark Prime lending rate to Base rate

system wef July 1, 2010.

Criteria for determination of Base Rate: While each bank may decide its own baserate, some of the criterio that could go in to determination of Base rate are

(i) Cost of Deposits(ii) Adjustment for negative carry in respect of CRR & SLR.

(iii) Unallocated overhead cost for banks such as aggregate employee compensation

relating to administrative functions in corporate office, directors and auditorsfee, legal and premises expenses, depreciation, cost of printing and stationery,expenses incurred on communication and advertising, IT spending and cost incurred

towards deposit insurance and

(iv) Profit margin

Since the Base rate will be the minimum rate for all commercial loans, banks are not

permitted to resort to any lending below the Base rate except some special categories

like (i) Short Term agricultural loans.

(ii) Export credit, where interest concessions are granted by GOI

(iii) Loans granted to a corporate, post restructuring.

(iv) Loans under DRI scheme.(v) Advance against Banks own term deposit receipts.(vi) Loan granted to Banks own employees.


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Grievance Redressal Policy of our Bank:

Aim / ObjectiveThis policy document aims at minimizing instances of customer complaints and grievances

through proper service delivery and review mechanism and to ensure prompt redressal ofcustomer complaints and grievances. The review mechanism helps in identifying

shortcomings in product features and service delivery. The banks policy on grievanceredressal follows the under noted principles.

Customers be treated fairly at all times

Complaints raised by customers are dealt with courtesy and on time

Customers are fully informed of avenues to escalate their complaints/grievances within

the organization and their rights to alternative remedy, if they are not fully satisfied

with the response of the bank to their complaints.

Bank will treat all complaints efficiently and fairly as they can damage the banks

reputation and business if handled otherwise. The bank employees mustwork in good faith and without prejudice to the interests of

the customer.

In order to make banks redressal mechanism more meaningful and effective, a structuredsystem has been built up towards such end. This system ensures that the redressal sought

is just and fair within the given frame-work of rules and regulation. The policy documentwould be made available at all branches. All the employees of the Bank will be made aware

about the Complaint handling process

FrameworkThe customer complaint arises due to:

A. The attitudinal aspects in dealing with customers

B. Inadequacy of the functions/arrangements made available to the customers or gaps in

standards of services expected and actual services rendered.


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RETAIL BANKING & THIRD PARTY PRODUCTS

Retail Banking:

Retail banking is characterized by three M,

(1) Multiple products,(2) Multiple delivery channel and

(3) Multiple customer groups.

Basically, there are three important segments of Retail banking

(1) Deposits products,

(2) Loan products, and

(3) Other service products

Why Retail Business?

Growing competition & diminishing margins in corporate financing.

Potential area for return on fund deployment.

Corporate objective: To increase outstanding Retail credit by 27.98% or to 41,400

crs. at the end of 31.03.2014

Branches to generate maximum leads and forward to RLF

Opportunity to cross-sell more products & services To counter stiff competition prevailing in the market

Less risk exposure

Customer MotivationsRetail Loan Campaign from 01.02.2014 to 31.03.2014 for Baroda Home Loan,Baroda Auto Loan & Baroda Traders Loan.

Our bank has launched the campaign for Baroda Home Loan, Baroda Auto Loan & Baroda

Traders Loan from 01.02.2014 to 31.03.2014 with 100% waiver of Unified processing

charges on Baroda Home loans (including Home Improvement Loan & AAA) and Car Loans &

50% waiver of processing charges on Baroda Traders Loans (Applicable to all loanssanctioned till 31.03.14 and disbursed upto 10.04.14 under) 50% waiver of processing

charges on Baroda Traders Loan is also applicable to accounts reviewing with

enhancement,but for enhanced portion only.

Staff Motivations

PPF CAMPAIGNln order to promote the opening of large number of PPF Accounts this year our Chairman &

Managing Director has again approved a new and improved Cash incentive linked Campaign


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for opening of PPF Accounts in the authorized branches Pan lndia during the period

starting from 1st January, 2014 to 31st March, 2014.

Each staff member, whether from an authorized/ un-authorised branch or administrative

office, shall be eligible to receive a cash incentive of Rs. 25/- per account, in case he/she

has canvassed a minimum 5 new PPF accounts. The incentive will increase to Rs. 30/- perPPF account if staff member canvasses 15 or more PPF accounts during the campaign

period.

Retail Lending Continuation of various Incentive Schemes.Bank has introduced the following incentive schemes for driving growth in Retail Lending.

1. Payment of incentives to staff members against the Home Loan leads directed bythem and converted into real business.

Incentive will be paid for Home Loan application above Rs.10 Lac &upto Rs.50 Lac at therate of Rs.2500/- per application and Rs.5000/- per Home Loan for Home Loan application

above Rs.50 Lac against the leads directed by the staff members and where Home Loan is

sanctioned and disbursed by the Bank.

2. Payment of service charges to Approved Builders against the Home Loan leadsdirected by them and converted into real business.

Builders will be paid service charges, which should not exceed 0.25% of the Home loanamount for every case directed to the Bank or Rs.25000/- whichever is lower subject to

sanction and disbursement of Home Loan by the Bank.

3. Payment of pay out / service charges to all Car Dealers & their Sales Executives.

- Payment of pay out to all Car Dealers at the rate of 1% of Car Loan amount

disbursed against the leads directed by them and converted in to real business.

- Payment of service charges of Rs.1000/- per Car Loan, to the Sales Executives ofCar Dealers against the leads directed by them and converted in to real business.

The Schemes are initially launched upto 30.09.2013. However, now it has beendecided to continue the incentive schemes as under.

Payment of incentives to staff members against the Home Loan leads directed by

them and converted into real business - will continue upto 31.03.2014 Payment of service charges to Approved Builders against the Home Loan leads

directed by them and converted into real business will continue on ongoing basistill further instructions.


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Payment of pay out / service charges to all Car Dealers & their Sales Executives -

will continue on ongoing basis till further instructions.

Capital Gain Account Scheme, 1988:

1. The exemption provided under the section pertain to long term capital gain arising onsale of residential property and investment of such gains in another residential

property. As per law this investment must be made within 2 years for purchase & and

three years for construction.

2. In case, after the sale of property, a person is not able to find property of his choice,

the amount of capital gain shall be kept under this scheme till investment.

3. Two types of accounts can be opened under this scheme:

(a) Deposit A- deposits made under this account would be in the form of savings bank

deposits and(b) Deposit B- deposits made under this account would be in the form of term deposits,

with an option to retain the deposit as cumulative or non-cumulative. Deposits may bemade as a single lump sum amount or in instalments at any time on or before

furnishing the return on income

4. Withdrawals under savings can be made from time to time. A declaration in form C

giving details of purpose is required. Form D shall also be required.

5. Helps to avail of tax exemptions from capital gains, tax exemption available under

section 54(f) (4) of the Income Tax Act.6. Nomination facility available.

UTI Mutual Fund (UTI) MF:1. On 1st March, 2006 MoU signed between our Bank and UTI Asset Management Co.

for selling of UTI-MF products through our 100 identified branches across the

country in first phase.

2. Centers selected are such where UTI-MF is also having its office

3. Our Bank has since obtained AMFI registration no. 35783 which is to be

incorporated on all the application forms.

4. The selling of UTI Mutual Fund is yet another stream whereby more than 26

millions of BoB customers will get an opportunity to invest in various schemes of

UTI Mutual Fund closer to their doorsteps in the branches where they do their

business transactions.

Birla Sun Life Mutual Fund

1. Birla Sun Life Mutual Fund tied up with us for distributing its MF Products.

2. For distribution of Birla MF's products, the Bank has identified 100 branches across

the country, to start with. This will be extended to many more branches in duecourse.


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3. Under the Agreement, Bank of Baroda will offer the entire Birla MF's products across

the Bank's selected branches.4. In its drive towards providing greater customer convenience, the Bank will continue to

enlarge its basket of products - both its own as also third party, leveraging its vast

branch infrastructure."

Baroda First Wealth Pack:

Benefit Proposition Baroda First Wealth Pack:

Particulars Benefits To Customer Benefits to BankBaroda First SavingsBank Account (with

inbuilt feature ofavailability of groupInsurance cover)

Availability of many add-onfacilities in the form of

freebees. Added Unique inbuilt facility of coverageunder group Insurance

Scheme on nominal Insu.

Premium

Broaden Customer Base.Possibility of cross sell, up sell.

Increase in Low cost deposits

base.

Baroda First Regular

Deposit Account( annual Installmentfor 10 years)

Investment in High Yielding

Rec. Deposit.No risk of Interest rate

fluctuations

No TDS deducted at source

as per present rules.

Bank will get long lasting

relationship with customer atleast for -10- years.

Help increasing Recurring

Deposit base i.e. long term

resources for the Bank

India First Smartsave Plan (ULIP)

Insurance Coverage as

per ULIP plan.

Market based Wealth

creation

Broad basing Business portfolio.

Commission on Insurance

premium payable to Insurer

thereby adding to Non InterestIncome of the Bank

Customer will Invest every year Baroda FirstWealth Pack-

SilverRs.25000

Baroda FirstWealth

Pack- GoldRs.50000

Baroda FirstWealthPack-

Platinum

Rs.100000Baroda First Regular Deposit A/c (R.D.Installment for 10 yrs)

Annual

Installment of

Rs. 10,000/-

Annual

Installment

ofRs. 20,000/-

Annual

Installment

of Rs.50,000/-

Baroda First Savings Bank Account (with

inbuilt feature of availability of group

Rs. 2250/ Rs. 4,900/- Rs. 8,100/


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Insurance cover)

India First Smart save Plan (ULIP)* Rs. 12,000/ Rs. 24,000/- Rs. 40,000/

Payment of Group Term Insu. premium

(incl. of Service Tax)

Rs. 750/ Rs1,100/- Rs. 1,900/

Sum Insured under Group Term

Insurance (Age group 18 to 55 Years)

2 lacs 3 lacs 5 lacs

*Sum assured under IndiaFirst Smart

Save

Plan (age group 18-50 yrs)


*Sum assured under IndiaFirst SmartSave

Plan (age group 51-55 yrs)

2 lacs 2.64 lacs 4.40 lacs

Total Insurance Cover (ULIP+ Group Term

Insurance ) for 18-50 yrs aged Customer


Total Insurance Cover (ULIP+ Group TermInsurance ) for 51-55 yrs aged Customer 4 lacs 5.64 lacs 9.40 lacs

Baroda Health" (Medi-claim Insurance Policy)

1. This is in collaboration with National Insurance Co Ltd. for Banks Account holdersw.e.f 23rd February 2006.

2. It is a co-branded product to provide value added services to our customers and

available at all our branches across the country.

3. It is a Group Medical Insurance Scheme, takes care of the hospitalisation expenses

upto the amount of sum insured. This policy is available only to account holders of ourBank.

4. Insurance coverage i.e. sum assured may range from Rs 50.000/ to Rs 5.00 lacs per

family of 1+3, consisting of policyholder, spouse and 2 dependent children up to the

amount insured.

5. A member or all the members in insured family can avail hospitalisation benefits

during the policy period, to the extent of aggregate sum not exceeding the sum

insured.6. It provide covers in respect of any illness / disease, accidental injury and/ or any

ailment., any surgery that is required in respect of any disease or accident that has

occurred during the policy period, Pre-existing diseases covered after threeconsecutive continuous claims free policy years in respect of all diseases provided

there was no hospitalization for pre-existing ailments during such three years of

insurance

7. Policyholders are eligible for Income Tax exemption under section 80 D as per Income

Tax Rules.


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8. Cost of Health check up is allowed @ 1% of sum insured after completion of 3rd year

continuous claim free years of Policy.

Baroda Bachat Mitra

OD facility in Saving Bank Account.

Min. FDR amount Rs. 10000/- & in multiple of Rs. 1000/- for 12 to 120 Months.

OD- 80 % of FD amount with Min. Rs. 8000/- & Max. Rs. 100000/-

Pledge of FDR duly discharged.

Processing/Documentation-NIL

ROI- 1.00% above FDR rate with Min. Rs.25/- per month.

Cheque Book, Nomination Facility available.

Baroda Centenary Savings Account Auto sweep amount will be in multiple of Rs.5000/- in excess of threshold limit of Rs.

10000/- [default setting, looking to customer needs, liberty to fix higher than Rs.

5000/-, in multiple of Rs. 1000/-]

Reverse sweep in multiple of Rs.5000/- liberty to fix higher amount than Rs.5000/-, in

multiple of 5000/-

Tenure of the SDR will be max. 180 days.

Free collection of outstation chqs but postage charges will be recovered, Free Debit

Card, Free Cheque Book facility, Free Standing Instruction & welcome Kit.

Immediate credit of outstation chqs upto Rs.25000/

Baroda Premium Current Account

Free internet Banking, on line payment of Excise duty & Service Tax, Bank Statement

by E-mail, Free personal accidental insurance with credit card , Free Credit Card ( For

First Year ) Maximum to 2 Partners or 2 Directors, Balance Certificate, Signature

verification, Auto payroll & Unlimited no. of cheque leaves.

Rs.75000 QAB to be maintained.

50% concession in remittances & collection of out station cheques. Waiver in case CarLoans are in the name of Proprietor, Firm and Company, Also NIL folio charges.

Auto/Reverse Sweep facility, in multiple of Rs.25000 in excess of minimum balance, for

15-45 days.

Immediate credit of out station cheques o/s max Rs.50000/- at any time.

20% on locker rent if locker rent is paid in advance for three years and above in lump

sum.


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Baroda Premium Current Account- Privilege

Free remittances & collection of out station cheques, internet Banking, on line payment

of Excise duty & Service Tax, Bank Statement by E-mail, Free personal accidental

insurance with credit card, Free Credit Card (For First Year) Maximum to 2 Partners

or 2 Directors, Balance Certificate, Signature verification, Auto payroll & Unlimited no.of cheque leaves. Waiver in case Car Loans are in the name of Proprietor, Firm and

Company, NO folio charges.

Rs.2,50,000/- QAB to be maintained.

Auto/Reverse Sweep facility, in multiple of Rs.25000 in excess of minimum balance for

15-91 days.

Immediate credit of out station cheques o/s max Rs.150000/- at any time.

Baroda Jeevan Suraksha

Min. Rs. 1000/-, Min. balance Rs. 1000 on daily basis. Minimum balance charges

Rs.100+ST per quarter

Adm. Charge @10% of prem. amt collected shall be reimbursed by IFLI to our bank.

Life Insurance covers from India First Life Insurance co. Ltd. Up to an amount of Rs.5

lac (Min. Rs.1 lac & thereafter in multiples of 1 lac) on payment of premium at cost of

customer.

Auto sweep over Rs.5000 in multiples of Rs.5000, reverse sweep in multiples of

Rs.1000/- on LIFO pattern.

Free Debit card/internet banking & BOB Card Silver for first year with accidentinsurance cover of Rs.1 lac(BOBCD ltd)

Immediate credit of outstation cheques up to Rs.15000/-

Free SI

Baroda Pensioner Saving Bank A/c

Pensioners & BOB staff pensioners are also eligible

A/c opening by Min- Rs.5/-, Min. Balance Rs. 3000/- on daily basis, if not Min, balance

charge Rs. 100 + ST per quarter

Auto sweep beyond Rs.3000 to Short deposit of 180 days in multiples of Rs. 1000,

Reverse sweep in multiples of Rs.1000/- on LIFO pattern.

Free transfer of funds through DD/BC up to max. of Rs. 1.00 lac per month.

Free coll. of outstation cheques/ DD.


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Baroda Samraddhi HYearly / Quarterly Recurring Deposit Scheme

Individuals as well as Non Individuals are eligible for opening of Account.

Banks Normal Term Deposit interest rates are applicable Depositor will have to choose Installment Amount, Installment frequency (Quarterly or

Half Yearly) and No. of Installments to be deposited (Tenure of Account) .

Quarterly Recurring Deposit can be opened with minimum Rs500/- (further in multiple

of Rs 100) and Half Yearly Recurring Deposit scheme with minimum amount of Rs 1000

(further in multiple of Rs 100).

Minimum tenure of the account shall be 36 months and maximum 120 months.

NO TDS shall be deducted on Interest payments

Loan/ Overdraft facility upto 95% of outstanding credit balance at Interest rate

1.00% over deposit rate shall be available.

Penal Interest, Premature Payment and other norms as per usual

Monthly Recurring Deposits scheme shall be applicable.

Baroda Double Dhamaka Fixed Deposit SchemeLaunched w.e.f. 25.02.2013 keeping in view that there is a big group of depositors having

sufficient long term surplus fund, who desire to earn good return on their Investments. If

such Investors are offered option to double their funds in minimum period of time byoffering special rate of interest, they can be easily persuaded to park their funds with us

and thus Bank may fetch substantial retail term deposit under this bracket.

A Term Deposit Product wherein Depositor gets more than double of his initial depositamount, after a period of 7 Years 8 Months and 18 Days for Residents & Non- Residents

and 7 Years 3 Months and 24 Days for Senior Citizen

Minimum deposit amount -Rs 5,000/- (and further in multiple of Rs. 1000/-)

Maximum deposit amount -Less than Rs. 1.00 Crore

Maturity Value -On Due date Rs. 1000/- shall accumulate into Rs. 2001/-

offers a very attractive interest rate of 9.10% p.a. which is one of the best offering ason date .


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Domestic Term Deposits for Senior Citizens:

Additional interest of 0.50% on domestic term deposits of less than Rs.1 crore from

Senior Citizens for all maturities in terms of latest circular (No. BCC: BR: 98/225

dated August 17, 2006)

Retired Staff members who are Senior Citizens resident in India, branches are

authorized to pay additional interest of 1.50% per annum (i.e. 1% a normal staff

privilege plus 0.50% as a benefit to Senior Citizen) on their fresh term deposits and

renewals of existing Term Deposits of less than Rs.1 crore for maturities from 15

days to 10 years. (No. BCC: BR: 100/4 dated 1stJanuary2008).

*Rate of Interest will be depending on tenure & paid as per Banks guidelines fromtime to time. Revise interest rates payable on term deposits & NRO deposits up to

Rs. One crore, applicable to the renewal of existing deposits and acceptance of freshdeposits, with effect from 14.09.2011


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ROLE OF TECHNOLOGY IN BANK

e-Business Products of our bank

1. ATMcumDebit Cards

2. Baroda Connect3. Baroda Phone Banking

4. ONLINE RTGS / NEFT (through Baroda-Connect)

5. Baroda e-payment Gateways

6. Baroda m-Connect

7. Baroda Gift Card

8. Baroda Travel Easy Card

8. Baroda Rupay Card / Baroda BKCC Rupay Card

ATM-cum-Debit Card

Comparison of various Debit cardsVisaClassic

Maestro RuPay Combi Gold Platinum

IncomeEligibility

Allcustomerswho areeligible tooperate

theaccountindividuall





Annual income >Rs.3,00,000/-.Current Accountholders withaverage monthly

balance ofRs.50,000/- ormore (previoustwelve months

Annual income >Rs.5,00,000 /HNI / NRIcustomers.Current Account

holders withaverage monthlybalance ofRs.1,00,000/-or more (previoustwelve months

LOGO VISA MAESTRO RUPAY MASTER VISA

ATMWithdra

wal limit(Daily)

Rs.25000 Rs.25000 Rs.25000 Rs.50000 Rs.100000

Purchase limitat POS(Daily)

Rs. 50000 Rs. 50000 Rs. 50000 Rs. 100000 Rs. 200000


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AnnualFee

NIL NIL NIL NIL Rs. 150(Waived afterreaching a

thresholdspending ofRs.12,000/- inPOS/ e-commerce in acalendar year)

No ofwithdrawals

perday inATM

4 4 4 10 10

CardRenewal

After 10years

After 10years

After 10years

After 10 years After 3 years

Issuance of Non-Personalised Debit Card

As a part of our constant endeavor to leverage technology by offering new

products and services to our customers, our bank has taken another customer

centric initiative to introduce the facility of issuing Non-Personalised Debit Cards

of all 3 variants namely Visa Electron, Maestro and RuPay Classic.

Card limits are same in all variants on lines of current limits of Personalised Debit

Cards (Visa Classic):

i. ATM withdrawal limit: Rs 25,000/- per day.ii. Purchase limit at POS/e-commerce: Rs 50,000/- per day.

iii. No of Cash Withdrawals allowed per day will be 4 for Visa Electron/RuPay

Classic and 5 for Maestro Debit Card.

Key features of RuPay/VISA Platinum EMV Chip

They are International Chip Debit Card.

These variants are premium category of Debit Card and have higher per day

limits at ATM/POS.


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Cash withdrawal limit is up to Rs 1,00,000/- per day from an ATM with maximum

limit of Rs 15,000/- per transaction on our ATM & Rs 10,000/- per transaction on

other Banks ATM and purchase limit of Rs 2,00,000/- per day at POS. The customer will be able to withdraw Cash from an ATM in Foreign currency up

to the equivalent of Rs 1,00,000/- per day. Similarly, the maximum per day

purchase limit at POS in Foreign Currency will be equivalent of Rs 2,00,000/-. Maximum number of cash withdrawals allowed per day from an ATM is TEN and

there is no limit for number of POS/e-commerce transaction up to Rs 2,00,000/-

per day.

Can be used for e-Commerce transactions wherever RuPay and VISA Cards are

accepted. Both variants have PIN and CVV value. CVV is an important feature for

Debit Card transactions on the internet. CVV stands for Card Verification Value.It is the last three digits printed separately after the card number in the

signature band on the back of the card. Validity period of these debit cards is five years from month of issue.

Baroda Connect

Baroda Connect, an internet banking product of our Bank, is the very important

alternate delivery channel (ADC). This also facilitates the customers to enjoy variousbanking services from their door step (home / shop/ company) or anywhere having

internet connectivity, hence, in limited sense, we may call it as Mini Extension Counterof the Bank. In todaysbuyers market, where Customer is the King and each and everyservice industry including banking, are hovering around the centre point CUSTOMERS,such a unique service is extremely desired by the customers at large, especially by Gen-

Next customers and it also proves the concept of internet as www (win-win-winsituation for the Customers, Bank & Employees). Considering the same of prime

importance, our Bank has come out with a mega project Navnirmaan, which is going tobe beneficial to all the three, in one way or, other.

Benefit to the Customers:1.27x7x365 access (even no effect of Sundays, Holidays & Strikes)2. Time Saving

3. Substitute of Q-culture

4. Transparency & Trust

5. Available in other territories

6. Remittances to/from other Banks

7. Transfer of funds within Bank at no cost (without Inter-SOL Charges)8. Various ancillary services viz. e-pay, e-ticketing, utility bills payment

9. Various other facilities at free of cost10. Special limit for Transfer of funds within Bank may be considered


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Benefit to the Employees:1. Time saving as vouchers are not coming to the branches concerned for processing2. Operating Risk Mitigation upto some extent as transaction is being done by

customers

Benefit to the Bank:

1. Cost effective2. Additional services for retention & accretion of Gen-Next customers

3. Image of the Bank as Techno-savvy4. Facilitate the Bank to upgrade / diversify the range of e-banking services

Unique Features of Baroda Connect:

In todays intensive banking scenario, almost all banks are providing internet bankingfacility and services provided, are also more or less same. But, our Baroda Connect ishaving two very unique features first, transaction of future date can be scheduled

well before and second, multiple-users can be set in any Corporate User A/c.

Banking system thrives on customers stake / confidence reposed, hence, a safe &qualitative customer service provided by the Bank is the pre-requisite for placing itself

as preferred position in the market. Unfortunately, in recent past, some sort of illegalpractices (phishing, vishing, mishing, smishing) by unauthorized persons came into

picture. Hence, for enjoying safe, comfortable and trustworthy internet banking by ourcustomers/users, our Bank has taken following initiatives:--

Awareness message on Home Page from phishing, vishing, mishing etc. attacks.

Awareness creation by the branches to their users through various methods. Provision of Virtual Keyboard for entering Sign-on password. Provision of two different passwords - for Sign-on & for Transaction.

Additional safety measure by disabling Transaction Password if not used for 90 days,so that chances of misuse due to unvigilant actions of customers could be eliminated.

Sending SMS about transactions, on registered mobile phone to facilitate the users

for early access of genuineness of transactions.

Daily / Weekly ceiling on transaction amount so that any unauthorized person cannot

make big damage to our users at once and subsequently, genuineness of transaction

can be established by the user, through receiving SMS and if it is unauthorized,

necessary steps may be taken at the earliest.

Third party / Inter-bank fund transfer only after Registration by the user.

Fraud Management Services (FMS) has been implemented as additional safety

measure.

OTP Facility is providing additional safety.


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Services offered to Retail Customers Balance enquiry in Operative account, Deposit accounts and Loan accounts.

Stop payments of cheques

Tax Deduction Enquiry

Account summary summary of all operative, deposit and loan accounts Fund transfer to Self / linked account and Third party fund transfer. Request for cheque book, fixed deposit renewal, Switch Mailing address, account

opening for CBS and e-banking.

Profile customer can change his profile and change his password. Activity history Customer can get details of all the activities carried out by bank. Modeling Customer can model deposit / loan schemes of the bank and know about

likely maturity value, if he invests or likely EMI if he takes loan, etc.

ASBA facility

School Fee options

Bill payment option Facility of IMPS for instant Inter/Intra Bank fund transfer through Baroda Connect . Online Fixed Deposit Facility

Services offered to Corporate Customers All facilities mentioned under Retail Customers

Approvals For corporate customers, there can be involvement of multiple usersfor transfer of funds / payment of bills, etc and Baroda connect allows multiple

users to log in and initiate / approve the transactions, as per powers delegated by

the corporate to their users.

Trade Finance queries relating to Import/Export, Inland Trade, B.G., Forward

Contract. Direct Salary upload facility.

ASBA facility

Facility of IMPS for instant Inter/Intra Bank fund transfer through BarodaConnect.

Limit for transactionsRetail customers can have max.5 transactions/day. But in case of Corporate customers,there will not be any restrictions on the Number of Transactions per day. The limit for

corporate customer can be increased on the request of the customer and

recommendation of the concerned branch.(Amt. in Rs.)

Retail CorporateSelf linked

A/c

Third party

fund transfer

Self fund

transfer

Third party

fund

transfer


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Per transaction Unlimited 50,000 5,00,000 50,000

Daily limit Unlimited 100,000 10,00,000 1,00,000

Weekly limit Unlimited 4,00,000 40,00,000 4,00,000

Monthly limit Unlimited 10,00,000 1,00,00,00

0

10,00,000

Yearly limit Unlimited 60,00,000 6,00,00,000

60,00,000

Baroda Easy Pay"Baroda easy Pay" is an electronic bill presentment and payment service launched by theBank in association with "Bill Desk", a well-known technology and payment service

company. It is transaction based internet banking service for customers of Mumbai CBS

branches. This service is providing two types of services to the customers

1. Bill Pay Presentment Type Biller2. Direct Pay Payment Type Biller.

Advantages to Customers No more visits, queues and waiting at branch Facility is available on 24x7 basis

Can make payment from anywhere

Ease of operation and convenience

Can pay utility bills on behalf of the individual, firm or company Instant Cyber Receipts for the payment made

Can View past payments at any point of time

Baroda easy Pay Service is free of charge

Bank of Baroda Online Trading (OLT)

Our bank has launched Baroda etrade an on-line trading facility in July 2012 in

association with BOBCAPS Ltd. our subsidiary. OLT is the state-of-the-art on-line

securities trading platform for the Banks customers. The on-line trading platform Barodae-trade is powered by a robust trading engine coupled with a comprehensive suite ofproducts and services. Since it comes with an in-built configuration with proactive

approach towards customer service, we aim to provide a constantly delightful trading

experience to our customers through this product.Any customer or non-customer, who wants to avail of OLT would be required to have/open

the following 3 accounts.

Bank account, i.e., Savings Bank/Current Account with any of the branches of the

Bank,

Demat account with any of the Depository designated branches of the Bank, and

Trading Account with BOBCAPS.


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BarodaRemitXpress

In keeping with the Banks goal of emerging as a true international bank of India, theBank has launched an Online International Money Transfer Service BarodaRemitXpress. This product is a unique and robust online remittance solution

from USA, UK and Eurozone. This online service is bank-neutral, thus not requiring thesenders and the recipients to have a bank account with us.

This product is unique as it provides

Desktop-to-Doorstep Solution

Convenience customer can use any bank in the U.S., U.K. and EURO ZONE Cheaper than an International Wire Transfer

Significantly cheaper than a money-transfer agent

Quicker than an international check

24x7 Customer Service

Global Security Standards - 128-bit encryption Online Funds Tracker

Free Personalized Message

Minimum 50 USD, GBP & EURO and Maximum 5000 USD, GBP & EURO

Different Pay modes form sending money to India

US - Online Money TransferUK - CIP (Customer Initiated Payment)

EURO - Local Wire

Customer can send money from over 12,000 US banks and all UK & EURO ZONE banks.

Beneficiary will receive Indian Rupee funds in the form of a Demand Draft. Times ofMoney is Bank of Baroda's alliance partner for the Baroda Remit Xpress service.

Biometric Cards /ATM

Biometric cards authorize transactions based on the customers biological attributes. Itcould range from fingerprints to voice to iris of the eyes. It is especially useful for

those who are illiterate or not familiar with the language used by the ATM to conduct

transactions. For example, in case of a fingerprint; a fingerprint does the job of a

Personal Identification Number (PIN) which is a unique number that each customer has

to punch in the ATM to conduct any transaction. Instead of typing the number the

person has to merely press his / her finger (usually the thumb) in the slot provided forfingerprint identification.

The biometric ATM card typically contains a smart chip, which carries biometric

information, personal details as well as the photograph of the account holder. BiometricATM works on identification of finger prints supported by voice prompting in local


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language. The key features of biometric ATM are use of finger impression in place ofPIN, voice output for people who cannot read, colour codes available for differentamounts, fixed amount facility, no keyboard etc.

Our banks first biometric ATM was installed at Gandevi, Gujarat.

Cheque Truncation

A working group under the chairmanship of Shri D Burman had recommended the

concept of Cheque truncation to replace the physical movement of cheque by the image

of the cheque. Truncation is the process of stopping the flow of the physical cheque

issued by a drawer to the drawee branch. The physical instrument will be truncated at

some point en-route to the drawee branch and an electronic image of the cheque would

be sent to the drawee branch along with the relevant information like the MICR fields,

date of presentation, presenting banks etc. Thus with the implementation of chequetruncation, the need to move the physical instruments across branches would not be

required, except in exceptional circumstances. This would effectively reduce the timerequired for payment of cheques, the associated cost of transit and delay in

processing, etc., thus speeding up the process of collection or realization of the

cheques.

Benefits Faster clearing cycle

Better reconciliation / verification process

Better Customer Service & Enhanced Customer Window

T+ 0 for Local Clearing and T + 1 for inter-city clearing.

Elimination of Float. Incentive to shift to Credit Push payments.

The jurisdiction of Clearing House can be extended to the entire country. No

Geographical Dependence

Operational Efficiency will benefit the bottom lines of banks. Local Clearing activity

is a high cost no revenue activity.

Minimizes Transaction Costs.

Reduces operational risk by securing the transmission route.

IFS CodeIndian Financial System Code (IFSC) is an alpha numeric code designed to uniquely

identify the bank-branches in India. This is 11 digit code with first 4 characters

representing the banks code, the next character reserved as control character(Presently 0 (ZER0)appears in the fifth position) and remaining 6 characters to identify

the branch. IFSC No. for branches of our Bank is BARB0XXXXXX where XXXXXX is

for Branch Alpha. But if the alpha code is less than 6 characters, it should be padded by

X after the alpha i.e. if the branch alpha of our Mount Abu branch is ABU then theIFSC code of this branch will be BARB0ABUXXX.

Documents

Study Material Promotion _Officers 26.2.2014