2nd Issue E-gyan, October-2013

8/19/2019 2nd Issue E-gyan, October-2013

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1 “e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

E GYASBLC, MASULIPATNAM

E-GYAN, PART-2

OCTOBER-2013


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EDITORIAL

“Life is simple” is the most quoted proverb by many philosophers and people

of wisdom from times immemorial. “Life is not such an easy thing. It is more

complex beyond one’s imagination” is also quoted by equally well versed and

eminent people on equally good number of occasions. Why such

contradictory statements is the million dollar question which may give rise to

another assumption – “Wise men can state anything to their own comfort”.However, the reality is that the contradiction is not pertaining to the above

statements but to the awareness levels of the individuals and piquant

situations in which those individuals are placed as well as to the context of

the situation.

The finer point of the above analysis is that awareness makes complex

situations simpler and ignorance makes simple situations more complex.

Being aware and not being aware is the state of individual.

Our small contribution to the SBI community in the direction of creatingawareness and enriching knowledge is the current release of e-GYAN for

October, 2013 which is a token offer of our faculty to the large SBI

community.

Hope you may like it!

We deeply acknowledge the inspiration derived from our Deputy General

Manager & Cir Dev Officer Sri. Prabhakar HemantKumar Pammi, Asst General

Manager (HR) Sri. R.S.N. Murthy and Chief Manager (L&D) Shri. G. Vasudev

Prasad which resulted in coming out with the e-editions.

D.SYAM PRASAD ASSISTANT GENERAL MANAGER (TRAINING)STATE BANK LEARNING CENTERMASULIPATNAM


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ACCOUNT STATEMENT ON SINGLE PAGE

Compiled By Sri. P.Brahmananda Rao, Manager (Training)

Many of the customers request branches for statement of account periodically. When

we try to print account statement on laser printers (any make), statement of one pagewill be printed on two pages and column alignment will be in such a way that it will be

very difficult to comprehend. However, our customers accustomed to this type of

account statement. But look at the paper being wasted at our 15000+ branches (may

be with a few exceptions).

SETTINGS TO BE CARRIED OUT IN SERVER FOR GETTING PRINT ON A

SINGLE PAGE:

BROTHER PRINTER: Go to Start -- Setting -- Click on Printer and Fax -- Right Click on

the Printer connected with Server --Click on Printing preference -- Click on Basic Tab --Select Paper size JIS B4

1. Click on Advance Tab -- Select Fit to Page Size -- Select Letter -- OK


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HP LASTER PRINTER

Go to Start -- Setting -- Click on Printer and Fax -- Right Click on the Printer connectedwith Server --Click on Printing preference -- Click on Effects -- Select Print Documenton—Select Paper Size-Letter----Uncheck-Scale to Fit—Enter 91%--Apply -- ok


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CANNON PRINTER:

Go to Start -- Setting -- Click on Printer and Fax -- Right Click on the Printer connectedwith Server --Click on Printing preference -- Select Page Size – B4—Check ManualScaling ----Enter 80 %--Apply -- ok


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GO GREEN SAVE PAPER SAVE

TREES


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KNOW YOUR CHEQUE (KYC OF CHEQUE)

Contributed by Sri.V.Venkata Narayana, Manager (Training)

As you may be aware, adherence to ‘CTS-2010’ standards has inherent advantages as

the security features in these Cheque forms help the presenting banks to identify thegenuineness of the drawee banks’ instruments while handling them in the image basedscenario. The homogeneity in security features acts as deterrent against frauds and thefixed field placement specifications facilitate straight-through-processing at draweebanks’ end through the use of optical/ image character recognition technology.

As per RBI’s directives, following mandatory security features have been incorporated inthe CTS-2010 Cheque standard:

Paper:

All security forms of the bank are now printed on MICR grade cheque paper. Differencebetween MICR grade cheque paper and other security paper are on technicalparameters. Bleaches are not mixed with pulp during the manufacturing process of thesecurity paper. Security papers are not totally white & have creamish tinge.

(CTS-2010 Standard paper should not glow under Ultra-Violet (UV) light i.e., it shouldbe UV dull)

Watermark, with the word “CTS-INDIA:

All cheques shall carry a standardised watermark, with the words “CTS-INDIA” whichcan be seen when held against any light source. This would make it difficult for anyfraudster to photocopy or print an instrument since this paper would be available only

to security printers handling cheque printing.


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The present water mark containing our Bank’s logo and name (both English & Hindi

version) as supplementary watermark.

VOID pantograph:

Pantograph with hidden / embedded “VOID” feature included in the cheques. Thisfeature will not be visible on the scanned image at the resolution specified in CTS butwill be clearly visible in photocopies and scanned colour images as resolution used insuch cases would be above the prescribed CTS standards. This would act as a deterrent

against colour photocopy or scanned colour images of a cheque.

(CTS 2010cheque having most important feature VOID pantograph – Can be checked

by photocopy of the cheque)Bank’s logo in Ultra Violet ink:

Bank’s logo printed in ultra-violet (UV) ink. The logo will be captured by / visible in UV-enabled scanners / lamps. It will establish genuineness of a cheque.

(Standard bank’s logo in CTS cheque visible through UV lamp)

Standardized fields placement:

All Cheques are subject to Standardized Field Placement such as Date, Payee Name, Amount in Words and Figures, Drawee Account No., Drawee Signature space etc have


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been standardised and the new cheque forms should adhere to these standards and allCheques are printed in light pastel colours.

(Copy of Sample Cheque indicating field placement)Cheque printing Colours and Background:

All cheques are required to be printed in light pastel colours. SBI Cheques are printed inlight blue colour (Multi City Cheques) and in light pink colour (Bearer/Order chequesother than Multi City Cheques).

Pre-printed account number field: All cheques should, as far as possible, be issued with the account number field pre-printed. This should be considered must for current account holders and corporate

customers.

Micro Lettering in place of line: All Cheques will have micro lettering in place of line for payees’ name and amount inwords. Micro lettering of cheque can be verified through magnifying glass.

(Micro Lettering under magnifying glass)

New rupee symbol:

Banks using new rupee symbol” ` “instead of using bilingual format at CAR (Courtesy

Amount Recognition) amount in figure field.


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(Standard CTS cheque with new Rupee Symbol)

Printer’s name along with printing “CTS-2010” establishing CTS-2010compliance:

(Printers Name along with printing CTS 2010)

Fugitive ink:

Background design shall be printed in fugitive ink which gets smudged on contactwith water. If the ink does not smear, the cheque treated as fake and paymentshould not be made. In case, any fake cheque for Rs.25,000/- and above is detectedwhich does not contain any mark of smear, it would be assumed that no testing had

been carried out.

(Fugitive Ink test by water droplet)The testing of fugitive ink must be carried out by the branch officials for payment ofcheques for value Rs. 25000/- and above as per instructions contained in e-circular

No.NBG/S&P-SP/21/2009-10 dated 19.12.2009.Secondary fluorescent ink:


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The portion where we dropped water on cheque for testing for fugitive ink and got

smashed and also glow in UV light (the smashed area only).

Some other important features of our cheques:

Non Multicity Cheques are issued either as BEARER or ORDER CHEQUES Multicity Cheques are always ORDER CHEQUES

Prohibiting alterations / corrections on cheques:

No changes / corrections should be carried out on the cheques (other than for datevalidation purposes, if required). For any change in the payee’s name, courtesy amount(amount in figures) or legal amount (amount in words), etc., fresh cheque forms shouldbe used by customers. This would help banks to identify and control fraudulentalterations.

Benefit of the CTS 2010 standard cheque:

The stronger security features in the CTS 2010 cheque makes it easy for thepresenting banks to confirm the genuineness of the drawee bank’s instruments.

The standardization of security features would act as a deterrent against fraudand enhance customer safety.

The fixed field placement would enable easy processing at the drawee bank’send.

FACSIM ILE OF FORGED CHEQUES:


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Water Droplet Test should be done on two places on the Cheque to see:

i) Back ground Print is smudging with water application,

ii) Bold Prints of the cheque remain intact & do not smudge in water.

Method to be adopted.

a) Put water droplet just below the Pantograph (VOID) or below the drawing limit

clause to see that Background Printing is smudging with application of water droplet.

Cheque is deemed to have passed the test if it does so.

b) Also put water droplet on BOLD PRINTING areas like on the top, where Bank

Logo and Bank Name is printed ,these are supposed to be printed with permanent ink

and should not smudge with application of water droplets. If it smudges in water, the

cheque should be suspected as fake cheque and Drawer / Home Branch should becontacted immediately.


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THE PROBLEM WITH “SMS ALERTS”

Contributed by Sri.G.V.Rao, Chief Manager (Training)

Many a time our customers are told- “Sir, from here on you will start receiving SMS

alerts on your mobile.” But the customer gets annoyed very soon as he never gets theSMS. The visibility which he expects about his transactions gets affected along with the

trust and confidence on the bank’s product.

The problem is very simple. Troubleshooting the problem is even simpler. Many of us

believe that setting “SMS Required” to “YES” under “Miscellaneous” of “Deposit Tabbed

Screen” at the time of Account creation will enable the customer for SMS alerts. But not

so!

Along with the above step, the SMS parameters are to be set up at account level by

choosing the option Deposit /CC/OD Accounts & Services--- Amend-Deposit/CC/OD Account-SMS Details and setting the 7 parameters for messages on different

occasions. All of them may appear “YES”. Even then, transmit the screen and

get it authorized. Your customer will be a happy SMS customer.


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If the customer fails to receive SMS Alerts despite doing all this, please contact at the

following e-mail addresses and contact numbers.

E-MAIL ADDRESSES:- 1) [email protected]

2) [email protected]

CONTACT NUMBERS:- 1) 022-27583717

2) 022-27561655


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STATE BANK SECURE – SOFTWARE TOKEN

(SECOND FACTOR AUTHENTICATION)

Contributed by Sri. P.Brahmananda Rao, Manager (Training)

State Bank Secure is a mobile resident application which generates the one time

password (OTP) in lieu of SMS OTP, for authenticating transactions in OnlineSBI. It

generates OTP instantaneously and eliminates the need for SMS OTP. The “State Bank

Secure” functions independent of the mobile network, hence change of your mobile

number/service provider will not affect your online transactions. The mobile resident

application “State Bank Secure” is PIN protected on your hand set / device to prevent

its misuse by unauthorized person.

PROCEDURE TO OBTAIN “STATE BANK SECURE”:

After logging on to ‘OnlineSBI’, in the Profile section under State Bank Secure, you will

find a link “Apply for State Bank Secure”. Click on that link which will generate a

reference number and a form which needs to be submitted to your branch. Branch will

approve your request if in order and will provide you a Pre-printed kit or you will receive

the password kit through post.

“STATE BANK SECURE” SOFTWARE:

The software can be downloaded from Google Play store/ Android market.

PROCEDURE TO ACTIVATE:

Once you receive the Pre-printed kit, you will have to enter the kit credentials on “Sate

Bank Secure” link under Profile section of OnlineSBI. You will have to enter pre-printed

kit number and the password provided on the kit (Please ignore the username

mentioned in pre-printed kit). After validation by the system, you will be shown serial

number and activation code for activating your software token.


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It is advisable to download and install State Bank Secure on your hand set / device

before hand for immediate activation by inputting the serial number and activation

code in the application.

DEVICE CODE:

When you activate the State Bank Secure by inputting serial number and activation

code, you will immediately get the screen in your hand set / device showing device

code, which needs to be entered in OnlineSBI during first time activation process. By

this registration process will be completed.

ADVANTAGES TO THE USER:

User can authenticate online transactions / operations in OnlineSBI by generating OTP

from State Bank Secure instantaneously.

The facility is going to be launched for public shortly.


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DIGESTING SUCCESS AND HANDLING POWER

Success is more a function of consistent common sense than it is of genius.

(An Wang)

Contributed by Sri. P.Padma Babu Goud, Manager(Training)

Plenitude and prosperity make us lazy and inactive. When our power is secure we don’t

feel the need to act. This becomes a serious danger, especially for those who achieve

success and power at an early age. Playwright Tennesse Williams, for instance, found

himself skyrocketed from obscurity to fame by the success of his play, The Glass

Menagerie. The play was a smash-hit in Chicago, burst its way to Broadway, and won

the New York Drama Critics’ Circle Award for best play of the season.

“The sort of life which I had previous to this popular success,” he later wrote, “Was

one that required endurance, a life of clawing and scratching, but it was a good lifebecause it was that sort of life for which the human organism is created. I was not

aware of how much vital energy had gone into this struggle until the struggle was

removed. I sat down and looked about me and was suddenly very depressed.”

With no fresh challenges in sight, with no more mountains to scale, Williams

eventually had a nervous breakdown. This, in fact, proved good for him. He was in the

valley once again. He could see new mountain slopes, which beckoned and challenged

him to climb again. He started his journey again and produced his most famous work,

a Streetcar Named Desire.Russian novelist, journalist and short-story writer Fyodor Dostoyevsky’s

psychological penetration into the human soul profoundly influenced the 20th-century

novels. He presented characters with contrasting views about freedom of choice,

socialism, atheism, good and evil. Interestingly, whenever he wrote a successful novel,

Fyodor would feel the financial security he had gained which made the act of creation

unnecessary. He would then go to the casino and gamble away his entire wealth so he

could be reduced to poverty once more and be able to write again.

Not just monetary success, but even power has a curious way of climbing. It goesto the head,makes those around you restless and unhappy and leaves you delusory.

A journalist was once visiting a town to meet the Mayor, but before the meeting, he

went to a few people and enquired from them about him. The following were some of

the responses he received.


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The petrol pump attendant said the Mayor was a bum, a housewife remarked he

was lowlife, while the priest of the town thought the man was a scoundrel. Everyone,

the journalist spoke to, held a poor opinion of the Mayor. So, while chatting with the

Mayor, the journalist finally asked him, “How much do they pay you here?”

“Oh, nothing. I took this job just for the honour of it,” the Mayor replied. He hadno clue that contempt lurked behind the deferential exterior of people towards him.

So when power gets to one’s head, one is greatly inclined to become insensitive and

vain, and it is very important to guard oneself against this vanity, lest we turn into

caricatures of ourselves.

Also, if the past successes are not quickly digested, the psyche begins to disfigure.

It is imperative, therefore, to quickly digest the power one achieves. There are several

ways of doing it. First every achievement should be viewed as a milestone, not as a

mountain peak. If past glories begin to weigh heavier than your future dreams, take itas a warning that decay is setting in. Enjoy the adulation, respect and comfort that

success brings, but don’t become complacent. Remember, what made these pleasures

possible and sustained the efforts that led you till this point, as the thrill of life lies in

the journey; destinations are mere parking spaces to stretch your limbs and refuel.

Action is life, lassitude is death. So when you reach one landmark, relax and relish the

experience, but do not abandon the effort required to travel further. Set the bar

higher.

Or look at people whose achievements are bigger than yours. Seeing your place inthe larger scheme of things also helps change one’s perspective as this story illustrates.

Socrates was sitting in his school with several of his students, when an extremely

rich and famous man of Athens entered the hall to meet him. Socrates didn’t notice his

arrival and continued his discussions with his students. The man felt affronted but still

decided to wait a while. But with every passing minute, his anger mounted. After

about half an hour of waiting, he suddenly shouted at Socrates, “You don’t know who I

am?”

Socrates looked at his visitor and said, “let us decide that too.” He called for a worldmap and asked this man to point out where was Athens in the map. After careful

scrutiny, the man pointed to a little speck. Socrates then asked him to point out on the

map where his estate was, where his palace was and so on. Realizing those possessions

that he was so proud of were specks within specks in the larger scheme of things, the

man was at a loss and came to terms with his own insignificance. The lesson was


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completed. Socrates folded the map and handed it over to him as a reminder of his

humble status in the world.

Similarly to be conscious of our mortality grounds us.

Another tip for digesting power is to develop your feminine polarity. Man isaggressive by nature; woman is compassionate. The Bible states, God completed the

creation of the world in six days, yet every subsequent day, he kept refining his

creations until he created man. Even then he was not satisfied. So he took a bone from

man’s rib created a woman – a more refined version of man. In fact, a man becomes

complete and capable of great achievements only when he recognizes his own feminine

polarity - his warm, giving and kind self.

Cultivating a sense of humour about oneself also helps handle success. Humour

grounds us and helps us connect with others thus proving a good antidote for the

isolation that power brings. The ability to laugh at ourselves insulates us from other egomistakes.

Understanding the principles of Tao, the hidden order that governs the universe, is

the key to handling power. The principle of cosmic justice is based on the maxim that a

person reaps what he sows. The doctrine of karma and belief in divine retribution are

different expressions of a common principle that the world is governed by the principle

of justice. Justice (balance) is inherent in the fabric of the cosmos.

Thus when giddy with power we lose touch with our inner rhythm, or the Tao, and

behave recklessly or cruelly, retribution does come. It perhaps does not come from

some God sitting in the heavens, but from within us when, due to our physical and

mental imbalance, we are no longer available to our possibilities.

The recognition of the role of luck in our achievements also helps keep humility alive

in us. It is indeed not just one’s prowess, but also providence that leads him to a

position of power. This realization subdues the ego.

Lastly, we need to learn to love our people and be kind to them. Love is and

enzyme that digests power, and compassion is the best antidote against power’s

corrupting influence.

SOURCE:

PAVAN CHOUDARY’S BOOK – HOW A GOOD PERSON REALLY CAN WIN


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TRANSFORMATIONAL LEADERSHIP – A PANACEA FOR

ORGANIZATIONAL DITHERING

Contributed by Sri.G.V.Rao, Chief Manager (Training)

In the democracy which I have envisaged, a democracy established by

nonviolence, there will be equal freedom for all. Everybody will be his own

master. It is to join a struggle for such democracy that I invite you today.

Once you realize this you will forget the differences between the Hindus

and Muslims, and think of yourselves as Indians only, engaged in the

common struggle for independence – Sri. MOHANDAS KARAMCHAND

GANDHI, the exemplary transformational leader standing tall above all

those leaders in that creed.

I have a dream that one day this nation will rise up and live out the true

meaning of it’s creed: “ We hold these truths self evident :that all men are

created equal.” – The vision of Martin Luther King of a future desired state

in his popular “I have a dream” speech. He may be cited as standing in the

frontline of transformational leaders.

Today many organizations in the world are struggling- to find a secured place in the

market thwarting intense competition, to cope up with the umpteen and unpredictable

changes, to fine tune themselves to the several complexities appearing like flash bulbs

on business landscape etc. Corporations are hunting for suitable business strategies.

They are in search of their core competencies. A constant worry for the future is taking

a heavy toll of their present stake.

No doubt, today’s market realities are extremely complex and most of the time they are

fast changing. Technology has ushered in a new era- suddenly demarcation between

businesses vanished. Organizations engaged in one area of business started expanding

their horizons taking advantage of the technology and the phenomena perhaps


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influenced services sector more than primary sector. New organizations emerged on the

global business turf with newer and superior technologies and globalization is fuelling

the germination and the growth of new economy organizations. In India, post-1990s

witnessed the mushrooming of new organizations across service sector taking

advantage of LPG (Liberalization, Privatization and Globalization). Old economy

organizations were grappling for growth and sustenance and some of them struggled

hard to stay back in the market.

Perhaps, it is the general slowdown caused by so called global meltdown, which

prevented the fall of many traditional, conservative old economy organizations in India,

which failed to change themselves.

In the above context, most of the time the unanswered question lurking in the dark is

the role leadership has to play across all organizational layers-right from the top

management to a supervisor working at the gross root level. What model of leadership

is required in these turbulent times is attracting the academician’s attention more

frequently.

In the above backdrop, the recent focus of much academic debate is on

“transformational leadership”, which is one of the four broadly accepted contemporaryleadership models. The other three contemporary leadership models are- transactional,

charismatic and authentic.

This recent obsession of management academicians with “transformational leadership

model” doesn’t throw a surprise as the model confirms to the present day demands.

According to certain academicians like P.L.Cox, there are two fundamental categories of

leadership- transactional and transformational. Some contemporary experts inmanagement and human behavior like McGregor Burns described transactional model

as the simple exchange of tangible compensation and rewards for the work done and

loyalty exhibited by the followers. In this process, the leadership directs and motivates

the followers by appealing to their own self interest.


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Transformational model was described as engaging the followers at much higher level

i.e.; at moral level or at higher order intrinsic needs above Abraham Maslow’s basic

hierarchical needs, thereby inspiring followers to embrace a new vision of possibilities

and developing followers into leaders and leaders into moral agents.

The congruency of various academicians’ postulates regarding “transformational

leaders” can be summarized as under:

Facilitates people in progressive redefinition of mission and vision.

They anticipate future trends and prepare to move the organization in that

direction in a proactive manner.

They are courageous, ethical and full of initiative.

They are assertive risk takers and do not hesitate to seize new opportunities.

They are thoughtful thinkers who can understand organization in the context of

environment and can formulate and implement strategies by inspiring followers

to embrace the path of new possibilities.

They make employees or followers to look beyond their self-interests for the

collective good. They convert followers into leaders and leaders into better leaders.

Most authors proposed that transformational leadership includes four key components-

1. Inspirational motivation 2.Intellectual stimulation 3.Idealized influence

4.Individualized consideration.

1. Inspirational motivation:

All transformational leaders can visualize future which may be significantly different

from the present and they guide the followers into future by providing them with a

sense of meaning and challenge as well as by creating a sense of commitment to the


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vision of the future. They inspire by what they say and do, perhaps attributable to their

charisma or aura. They play on the intrinsic motivators of the followers like sense of

pride, self esteem etc.

2. Intellectual stimulation:

“Think out of the box” is the biggest slogan of transformational leadership. Their motto

is not to leave any questioning of us to our competitors and better to question

ourselves before that. Creating new ideas and exploring for innovative solutions is a

sought after thing for them and in this process they do afford high tolerance towards

failures, mistakes and do not resort to blame game. They positively subscribe to

abandoning of practices which are no longer useful and whose relevance is a question.

Followers become aware of their capacities and capabilities.

3. Idealized influence:

Followers of transformational leadership identify themselves with the leader. Followers

repose ultimate trust in such leaders and they admire him to the hilt. To earn this

idealized influence, transformational leaders often consider the needs and interests of

the followers over their own, sometimes involving sacrifice of their own interest.

Though transformational leaders may use little power to get their own interests served,

they use all their powers to benefit their followers, which further the idealized influence.

They are very often referred to by followers as makers or mentors of their careers.

4. Individualized consideration:

Transformational leaders perform all types of supportive roles to their followers like

mentor, coach, teacher, facilitator, counselor etc and bestow individual consideration

depending on their individual talent, capacity and resourcefulness. Followers are not

only empowered, but also guided in carrying out the task without any fault fingering.

According to many management experts, transformation leadership creates

synergy, that synergy which is needed to bring people together for exploring


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new alternatives appearing dim on the horizon and better than the individual

alternatives put forward by each of them.

It is no wonder that transformational leadership creates competencies

required for strategic change into future enabling organizational

improvement, effectiveness and positive shift in organizational culture.

Hence in these days of environmental turbulence where nothing is static or

even semi-static, it is the futuristic vision of transformational leadership that

can rescue organizations from falling into oblivion.

The inference may be truer for Public sector Undertakings of India which are

having lifetime employment practices and as such wherein the inertia

against change is more felt. Transformational leadership can yield

performance far beyond expectations.

References:

1. Bass, B.M. – Bass & Stogill’s Handbook of Leadership.

2. Anderson T.D – Transforming leadership: Equipping yourself and

challenging others to build the leadership organization.

3. Some articles from journal of leadership education.


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TIT-BITS FROM KHL (KNOWLEDGE HELP LINE)

01. How to review/renew KCC Limit. What are the necessary documents to

be obtained for review/renewal of KCC Limit. KCC Limit is reviewed annually

but after how many Years KCC Limit need to be renewed.

Answer: Dear Sir, As per the revised KCC scheme one time documentation ie.,

AB1,AB2 & AB3 where ever applicable need to be obtained for the Maximum

permissible limit as per the revised documents which contain the Maximum

drawl limit for every year. It is valid for 5 years. The KCC is

reviewed/renewed on the repayment of the amount before the due date, i.e.,

31 st Jan for Kharif and 31 st July for Rabi. Simple declaration (Details of

crops raised/proposed) by farmer from the second year onwards, as per our

renewal application is to be obtained.

02. Sir, In our SBI Realty Home Loan, 1. Within 2 years whether the

Borrower has to finish the construction or commencement of the

construction is enough? 2. If the commencement of construction is enough,

then what is the period to complete the construction? Can he take his own

time, say 5 years to complete the construction? 3. Can the new house can be

built for very low value? (Eg. Land cost Rs.15.00 lac, house built for only

Rs.2.00 lac)

Answer: Dear Sir, SBI Realty is introduced with a view to effectively tap the

home loan potential available in the market. As per this scheme the

maximum period stipulated for construction of house is 2 years from the date

of availment of loan. Accordingly, branches should obtain suitable

declaration from such borrowers, undertaking to construct a house on the

said plot of land within the aforesaid period and also authorizing the Bank to

charge higher rate of interest as deemed fit by the Bank or even recall the

loan, in the event of failure to construct the house within the above

stipulated periods. Penalty in case of delay in construction: Interest rate asapplicable to Personal Loan against Mortgage of Immovable Property or

5.25% above the Base Rate, whichever is higher, will be applied if:

Construction of house is not commenced within the maximum stipulated

period. The higher interest rate will be charged after the expiry of period

stipulated for commencement of construction. However once the


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construction of the house is commenced on the plot financed by the Bank,

the interest rate spread vis-à-vis Base Rate/SBAR in the account contracted

at the time of original sanction of loan will be restored.

03. Sir we are maintaining fixed deposit of 2 rural co-operative banks. The

TDS is deducted from their respective accounts. what are the tax exemptions

certificates are to be obtained from the banks

Answer: Tax is NOT deductible at source from interest payable to the

following: 1. Any Banking company to which the Banking regulation Act,1949

applies. 2. Any Co-operative society engaged in carrying on the business of

banking. 3. Any financial institution/ corporation estabilished by or under a

Central, State or Provincial Act.

04. Sir, a non-IOI DD issued on 19/01/2010 in favour of "State Bank of

Hyderabad" payable at SBH Sathupalli for Rs.6840/-. This DD belongs to

MRO Tiruvuru and came for cancellation. While cancelling the DD system

replies as "no branch record found" the details of DD are DD no : 134396

date : 19/01/2010 prefix: 2701 serial no : 891423 key : nijbuq issuing

branch : tiruvur (0794) drawee branch : sbh sathupalli (0293) please guide

us on how to cancel it?

Answer: Payment and reversal of old drafts are normally blocked by DRD

(Draft Reconciliation Department), Corporate Center.The above draft

mentioned by you is sufficiently old and hence might have been blocked by

DRD for payment / reversal. Therefore you take up with DRD for releasing

the above entry so that reversal can happen at your end.

05. Sir, please explain what s RCSA?

Answer: It is a technical, systematic and extremely focussed process for

identifying significant and dominant risks that may crop up from theproducts, processes and activities of organizations so that a technical and

professional framework for risk mapping can be created with the objective of

assessing the risk profiles and identifying risk ownerships. the end process of

RCSA is to chalkout risk mitigation plans and reporting the above 3 processes

of identification, assessment and mitigation plans in structured and


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implementable ways.

06. A institution like Ram Krishna mission wanting to purchase a ambulance

by opting a loan option. i just want to know if the credit proposal could be

processed or not. if yes than by which scheme and if no than why not?

Answer: Most of the Non-Profit organizations are organized in the form of

Trusts. If the Trust Deed and other related bye-laws permit borrowings for a

specific purpose, then the same can be financned by Banks. However the

same is subject to regular screening for Technical/financial feasibility,

Commercial/economic viability etc.

07. Is it necessary to be witnessed by an a/c holder for a payment of

withdrawal to an "LTI"?

Answer: Sir, We reproduce the Bank's guidelines as per the Master Circular

on Savings Bank Account in respect of LTI Account transactions. Ordinarily,

only personal withdrawals against production of the relative pass-book will

be allowed to an illiterate depositor. When he desires to effect a withdrawal

he should call at the Bank and present his pass-book to the operator. After

the depositor is identified on the basis of the photograph on the Bank¿s

record and/ or the identification marks, if any, recorded on the account

opening form, the operator will fill in the withdrawal order form for the

required amount. The depositor will thereafter affix his left hand thumb

impression on the face of the withdrawal order form at the place provided for

the signature of the depositor and also on the back of the form. Before

passing the withdrawal for payment, the passing official will arrange to call

for the depositor and, by personally referring to the photograph and/ or the

identification marks, if any, ensure that the withdrawal is being infact made

by the depositor himself. He will also ascertain from the depositor the correct

amount of withdrawal and in token of having done so, affix his initials

against the amount mentioned in the withdrawal order form.

08. Many of our customers are complaining that they are not receiving SMS

alerts when withdrawing money from ATM and from CBS as well. But they

are getting SMS alerts when they are crediting the amount. We have checked

in the CIFs and confirmed the mobile number is correct and also checked at

account level whether there was yes at SMS option or not. How to resolve


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this?

Answer: Go to Deposit CC OD accounts> Amend >Drop Down option: SMS

Details, Enter particulars in the screen. Also in Deposit CC OD accounts >

Amend > Tabbed Screen, in core options, remove all zeros in lower part ofthe screen including Extension counter.

2nd Issue E-gyan, October-2013

Documents

Transcript of 2nd Issue E-gyan, October-2013