RETAIL BANKING AN INTRODUCTION

Retail banking is, however, quite broad in nature - it refers to the dealing of commercial banks with individual customers, both on liabilities and assets sides of the balance sheet. Fixed, current / savings accounts on the liabilities side; and mortgages, loans (e.g., personal, housing, auto, and educational) on the assets side, are the more important of the products offered by banks. Related ancillary services include credit cards, or depository services. Retail banking refers to provision of banking services to individuals and small business where the financial institutions are dealing with large number of low value transactions. This is in contrast to wholesale banking where the customers are large, often multinational companies, governments and government enterprise, and the financial institution deal in small numbers of high value transactions. The concept is not new to banks but is now viewed as an important and attractive market segment that offers opportunities for growth and profits. Retail banking and retail lending are often used as synonyms but in fact, the later is just the part of retail banking. In retail banking all the needs of individual customers are taken care of in a well-integrated manner.

Todays retail banking sector is characterized by three basic characteristics:

o o o

Multiple products (deposits, credit cards, insurance, investments and securities) Multiple channels of distribution (call center, branch, internet) Multiple customer groups (consumer, small business, and corporate).

INDUSTRY PROFILE

INTRODUCTION Financial Sector Reforms set in motion in 1991 have greatly changed the face of Indian Banking. The banking industry has moved gradually from a regulated environment to a deregulated market economy. The market developments kindled by liberalization and

globalization have resulted in changes in the intermediation role of banks. The pace of transformation has been more significant in recent times with technology acting as a catalyst. While the banking system has done fairly well in adjusting to the new market dynamics, greater challenges lie ahead. Financial sector would be opened up for greater international competition under WTO. Banks will have to gear up to meet stringent prudential capital adequacy norms under Basel II. In addition to WTO and Basel II, the Free Trade Agreements (FTAs) such as with Singapore, may have an impact on the shape of the banking industry. Banks will also have to cope with challenges posed by technological innovations in banking.

EMERGING ECONOMIC SCENE The financial system is the lifeline of the economy. The changes in the economy get mirrored in the performance of the financial system, more so of the banking industry. The Committee, therefore felt, it would be desirable to look at the direction of growth of the economy while drawing the emerging contours of the financial system. The India Vision 2020" prepared by the Planning Commission, Government of India, is an important document, which is likely to guide the policy makers, in the years to come. The Committee has taken into consideration the economic profile drawn in India Vision 2020 document while attempting to visualise the future landscape of banking Industry. India Vision 2020 envisages improving the ranking of India from the present 11th to 4th among 207 countries given in the World Development Report in terms of the Gross Domestic Product (GDP). It also envisages moving the country from a low-income nation to an upper middle-income country. To achieve this objective, the India Vision aims to have an annual growth in the GDP of 8.5 per cent to 9 per cent over the next 20 years. Economic development of this magnitude would see quadrupling of real per capita income. When compared with the average growth in GDP of 4-6% in the recent past, this is an ambitious target. This would call for considerable investments in the infrastructure and meeting the funding requirements of a high magnitude would be a challenge to the banking and financial system.

India Vision 2020 sees a nation of 1.3 billion people who are better educated, healthier, and more prosperous. Urban India would encompass 40% of the population as against 28 % now. With more urban conglomerations coming up, only 40% of population would be engaged in agricultural sector as against nearly two thirds of people depending on this sector for livelihood. Share of agriculture in the GDP will come down to 6% (down from 28%). Services sector would assume greater prominence in our economy. The shift in demographic profile and composition of GDP are significant for strategy planners in the banking sector.

FUTURE LANDSCAPE OF INDIAN BANKING Liberalization and de-regulation process started in 1991-92 has made a sea change in the banking system. From a totally regulated environment, we have gradually moved into a market driven competitive system. Our move towards global benchmarks has been, by and large, calibrated and regulator driven. The pace of changes gained momentum in the last few years. Globalization would gain greater speed in the coming years particularly on account of expected opening up of financial services under WTO. Four trends change the banking industry world over, viz. 1) Consolidation of players through mergers and acquisitions, 2) Globalisation of operations, 3) Development of new technology and 4) Universalisation of banking. With technology acting as a catalyst, we expect to see great changes in the banking scene in the coming years. The Committee has attempted to visualize the financial world 5-10 years from now. The picture that emerged is somewhat as discussed below. It entails emergence of an integrated and diversified financial system. The move towards universal banking has already begun. This will gather further momentum bringing non-banking financial institutions also, into an integrated financial system. The traditional banking functions would give way to a system geared to meet all the financial needs of the customer. We could see emergence of highly varied financial products, which are tailored to meet specific needs of the customers in the retail as well as corporate segments. The advent of new technologies could see the emergence of new financial players doing financial intermediation. For example, we could see utility service providers offering say, bill payment services or supermarkets or retailers doing basic lending operations. The conventional definition of banking might undergo changes.

The competitive environment in the banking sector is likely to result in individual players working out differentiated strategies based on their strengths and market niches. For example, some players might emerge as specialists in mortgage products, credit cards etc. whereas some could choose to concentrate on particular segments of business system, while outsourcing all other functions. Some other banks may concentrate on SME segments or high net worth individuals by providing specially tailored services beyond traditional banking offerings to satisfy the needs of customers they understand better than a more generalist competitor. Retail lending will receive greater focus. Banks would compete with one another to provide full range of financial services to this segment. Banks would use multiple delivery channels to suit the requirements and tastes of customers. While some customers might value relationship banking (conventional branch banking), others might prefer convenience banking (e-banking). One of the concerns is quality of bank lending. Most significant challenge before banks is the maintenance of rigorous credit standards, especially in an environment of increased competition for new and existing clients. Experience has shown us that the worst loans are often made in the best of times. Compensation through trading gains is not going to support the banks forever. Large-scale efforts are needed to upgrade skills in credit risk measuring, controlling and monitoring as also revamp operating procedures. Credit evaluation may have to shift from cash flow based analysis to borrower account behaviour, so that the state of readiness of Indian banks for Basle II regime improves. Corporate lending is already

undergoing changes. The emphasis in future would be towards more of fee based services rather than lending operations. Banks will compete with each other to provide value added services to their customers. Structure and ownership pattern would undergo changes. There would be greater presence of international players in the Indian financial system. Similarly, some of the Indian banks would become global players. Government is taking steps to reduce its holdings in Public sector banks to 33%. However the indications are that their PSB character may still be retained.

Mergers and acquisitions would gather momentum as managements will strive to meet the expectations of stakeholders. This could see the emergence of 4-5 world class Indian Banks. As Banks seek niche areas, we could see emergence of some national banks of global scale and a number of regional players. Corporate governance in banks and financial institutions would assume greater importance in the coming years and this will be reflected in the composition of the Boards of Banks. Concept of social lending would undergo a change. Rather than being seen as directed lending such lending would be business driven. With SME sector expected to play a greater role in the economy, Banks will give greater overall focus in this area. Changes could be expected in the delivery channels used for lending to small borrowers and agriculturalists and unorganized sectors (micro credit). Use of intermediaries or franchise agents could emerge as means to reduce transaction costs. Technology as an enabler is separately discussed in the report. It would not be out of place, however, to state that most of the changes in the landscape of financial sector discussed above would be technology driven. In the ultimate analysis, successful institutions will be those which continue to leverage the advancements in technology in re-engineering processes and delivery modes and offering state-of-the-art products and services providing complete financial solutions for different types of customers. Human Resources Development would be another key factor defining the characteristics of a successful banking institution. Employing and retaining skilled workers and specialists, retraining the existing workforce and promoting a culture of continuous learning would be a challenge for the banking institutions.

COMPANY PROFILE

CANARA BANK:
Widely known for customer centricity, Canara Bank was founded by Shri Ammembal Subba Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a small port town in Karnataka. The Bank has gone through the various phases of its growth trajectory over hundred years of its existence. Growth of Canara Bank was phenomenal, especially after nationalization in the year 1969, attaining the status of a national level player in terms of geographical reach and clientele segments. Eighties was characterized by business diversification for the Bank. In June 2006, the Bank completed a century of operation in the Indian banking industry. The eventful journey of the Bank has been characterized by several memorable milestones. Today, Canara Bank occupies a premier position in the comity of Indian banks. With an unbroken record of profits since its inception, Canara Bank has several firsts to its credit. These include:

Launching of Inter-City ATM Network Obtaining ISO Certification for a Branch Articulation of Good Banking Banks Citizen Charter Commissioning of Exclusive Mahila Banking Branch Launching of Exclusive Subsidiary for IT Consultancy Issuing credit card for farmers Providing Agricultural Consultancy Services

Over the years, the Bank has been scaling up its market position to emerge as a major 'Financial Conglomerate' with as many as nine subsidiaries/sponsored institutions/joint ventures in India and abroad. As at September 2011, the Bank has further expanded its domestic presence, with 3432 branches spread across all geographical segments. Keeping customer convenience at the forefront, the Bank provides a wide array of alternative delivery channels that include 2623 ATMs, covering 899 centres. With 100% CBS, the Bank offers technology banking, such as, Internet Banking and Funds Transfer through NEFT and RTGS across all branches. The Bank has further enhanced its basket of new tech-products for customer convenience like Canara Gift Cards, Canara Campus Card, Canara Platinum Card, Bills Desk for utility bills payment, Cash withdrawal at Point of Sale (PoS) machines at Merchant Establishments, VISA money transfer and the ASBA (Application Supported by Blocked Amount) facility during FY11.

Not just in commercial banking, the Bank has also carved a distinctive mark, in various corporate social responsibilities, namely, serving national priorities, promoting rural
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development, enhancing rural self-employment through several training institutes and spearheading financial inclusion objective. Promoting an inclusive growth strategy, which has been formed as the basic plank of national policy agenda today, is in fact deeply rooted in the Bank's founding principles. "A good bank is not only the financial heart of the community, but also one with an obligation of helping in every possible manner to improve the economic conditions of the common people". These insightful words of our founder continue to resonate even today in serving the society with a purpose. The growth story of Canara Bank in its first century was due, among others, to the continued patronage of its valued customers, stakeholders, committed staff and uncanny leadership ability demonstrated by its leaders at the helm of affairs. We strongly believe that the next century is going to be equally rewarding and eventful not only in service of the nation but also in helping the Bank emerge as a "Global Bank with Best Practices". This justifiable belief is founded on strong fundamentals, customer centricity, enlightened leadership and a family like work culture. Subsidiaries

Canara Robeco Asset Management Company Canbank Financial Services Canara Bank Securities Canbank Computer Services Can Fin Homes Canbank Factors Canbank Venture Capital Fund

Milestones

1st July 1906 Canara Hindu Permanent Fund Ltd. formally registered with a capital of 2000 shares of Rs 50 each, with 4 employees. 1910 Canara Hindu Permanent Fund renamed as Canara Bank Limited 1969 14 major banks in the country, including Canara Bank, nationalized on July 19 1976 1000th branch inaugurated 1983 Overseas branch at London inaugurated 1984 Merger with the Laksmi Commercial Bank Limited 1985 Commissioning of Indo Hong Kong International Finance Limited 1987 Canbank Mutual Fund & Canfin Homes launched 1989 Canbank Venture Capital Fund started 1989-90 Canbank Factors Limited, the factoring subsidiary launched 1992-93 Became the first Bank to articulate and adopt the directive principles of Good Banking. 1995-96 Became the first Bank to be conferred with ISO 9002 certification for one of its branches in Bangalore
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2001-02 Opened a 'Mahila Banking Branch', first of its kind at Bangalore, for catering exclusively to the financial requirements of women clientele. 2002-03 Maiden IPO of the Bank 2003-04 Launched Internet Banking Services 2004-05 100% Branch computerization 2005-06 Launched Core Banking Solution in select branches and Number One Position in Aggregate Business among Nationalized Banks 2006-07 Retained Number One Position in Aggregate Business among Nationalized Banks. Signed MoUs for Commissioning Two JVs in Insurance and Asset Management with international majors viz., HSBC 2007-08 Launching of New Brand Identity and incorporation of Insurance and Asset Management JVs 2005-06 Launching of 'Online Trading' portal, Launching of a Call Centre and Switchover to Basel II New Capital Adequacy Framework 2008-09 The Bank crossed the coveted 3 lakh crore in aggregate business and the Banks 3rd foreign branch at Shanghai commissioned 2009-10 The Banks aggregate business crossed 4 lakh crore mark. Net profit of the Bank crossed 3000 crore and the Banks branch network crossed the 3000 mark.

Overseas branches of Canara Bank India The overseas branches of the bank are located in the following areas: London Leicester Hong Kong Shanghai Moscow Dubai Doha

Awards It was awarded first National Award, for 'Excellence in Micro & Small Enterprises (MSE) Lending' by the Ministry of Micro, Small & Medium Enterprises and Government. of India. It received 'Golden Peacock Award for Corporate Social Responsibility' for the year 2007. It was honoured with 'The Organization of the Year Award- for PR Excellence', instituted by Public Relations Council of India.

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ABOUT THE TOPIC

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RETAIL BANKING
DEFINITION:

Retail banking is typical mass-market banking where individual customers use local branches of larger commercial banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so

The

Retail Banking environment today is changing fast. The

changing customer demographics demands to create a differentiated application based on scalable technology, improved service and banking convenience. Higher penetration of technology and increase in global literacy levels has set up the expectations of the customer higher than never before. Increasing use of modern technology has further enhanced reach and accessibility. The market today gives us a challenge to provide multiple and innovative contemporary services to the customer through a consolidated window as so to ensure that the banks customer gets Uniformity and Consistency of service delivery across time and at every touch point across all channels. The pace of innovation is accelerating and security threat has become prime of all electronic transactions. High cost structure rendering mass-market servicing is prohibitively expensive. Present day tech-savvy bankers are now more looking at reduction in their operating costs by adopting scalable and secure technology thereby reducing the response time to their customers so as to improve
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their client base and economies of scale. The solution lies to market demands and challenges lies in innovation of new offering with minimum dependence on branches a multi-channel bank and to eliminate the disadvantage of an inadequate branch network. Generation of leads to cross sell and creating additional revenues with utmost customer satisfaction has become focal point worldwide for the success of a Bank.

ORIGIN OF BANKING

Banks are among the main participants of the financial system in

India. Banking offers several facilities and opportunities. Banks in India were started on the British pattern in the beginning of the 19th century. The first half of the 19th century, The East India Company established 3 banks The Bank of Bengal, The Bank of Bombay and The Bank of Madras. These three banks were known as Presidency Banks. In 1920 these three banks were amalgamated and The Imperial Bank of India was formed. In those days, all the banks were joint stock banks and a large number of them were small and weak. At the time of the 2 nd world war about 1500 joint stock banks were operating in India out of which 1400 were nonscheduled banks. Bad and dishonest

management managed quiet a quiet a few of them and there were a number of bank failures. Hence the government had to step in and the Banking Companys Act (subsequently named as the Banking Regulation Act) was enacted which led to the elimination of the weak banks that were not in a position to fulfil the various requirements of the Act. In order to strengthen their weak units and review public confidence
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in the banking system, a new section 45 was enacted in the Banking Regulation Act in the year 1960, empowering the Government of India to compulsory amalgamate weak units with the stronger ones on the recommendation of the RBI. Today banks are broadly classified into 2 groups namely (a) Scheduled banks. (b) Non-Scheduled banks.

BENEFITS OF RETAIL BANKING

Traditional lending to the corporate are slow moving along with

high NPA risk, treasure profits are now loosing importance hence Retail Banking is now an alternative available for the banks for increasing their earnings. Retail Banking is an attractive market segment having a large number of varied classes of customers. Retail Banking focuses on

individual and small units. Customize and wide ranging products are available. The risk is spread and the recovery is good. Surplus

deployable funds can be put into use by the banks. Products can be designed, developed and marketed as per individual needs.

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SCOPE FOR RETAIL BANKING IN INDIA o o

All round increase in economic activity Increase in the purchasing power. The rural areas have the large purchasing power at their disposal and this is an opportunity to market Retail Banking.

India has 200 million households and 400 million middleclass population more than 90% of the savings come from the house hold sector. Falling interest rates have resulted in a shift. Now People Want To Save Less And Spend More.

Nuclear family concept is gaining much importance which may lead to large savings, large number of banking services to be provided are day-by-day increasing.

Tax benefits are available for example in case of housing loans the borrower can avail tax benefits for the loan repayment and the interest charged for the loan.

ADVANTAGES AND DISADVANTAGES OF RETAIL BANKING

ADVANTAGES Retail banking has inherent advantages outweighing certain

disadvantages. Advantages are analyzed from the resource angle and asset angle.
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RESOURCE SIDE

o o o o o

Retail deposits are stable and constitute core deposits. They are interest insensitive and less bargaining for additional interest. They constitute low cost funds for the banks. Effective customer relationship management with the retail customers built a strong customer base. Retail banking increases the subsidiary business of the banks.

ASSETS SIDE o Retail banking results in better yield and improved bottom line for a bank.

o o o o o o o

Retail segment is a good avenue for funds deployment. Consumer loans are presumed to be of lower risk and NPA perception. Helps economic revival of the nation through increased production activity. Improves lifestyle and fulfils aspirations of the people through affordable credit. Innovative product development credit. Retail banking involves minimum marketing efforts in a demand driven economy. Diversified portfolio due to huge customer base enables bank to reduce their dependence on few or single borrower

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Banks can earn good profits by providing non fund based or fee based services without deploying their funds.

DISADVANTAGES

o o

Designing own and new financial products is very costly and time consuming for the bank. Customers now-a-days prefer net banking to branch banking. The banks that are slow in introducing technology-based products, are finding it difficult to retain the customers who wish to opt for net banking.

o o o

Customers are attracted towards other financial products like mutual funds etc. Though banks are investing heavily in technology, they are not able to exploit the same to the full extent. A major disadvantage is monitoring and follow up of huge volume of loan accounts inducing banks to spend heavily in human resource department.

o o

Long term loans like housing loan due to its long repayment term in the absence of proper follow-up, can become NPAs. The volume of amount borrowed by a single customer is very low as compared to wholesale banking. This does not allow banks to to exploit the advantage of earning huge profits from single customer as in case of wholesale banking.

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OPPORTUNITIES

Retail banking has immense opportunities in a growing economy

like India. As the growth story gets unfolded in India, retail banking is going to emerge a major driver. The rise of Indian middle class is an important contributory factor in this regard. The percentage of middle to high-income Indian households is expected to continue rising. The younger population not only wields increasing purchasing power, but as far as acquiring personal debt is concerned, they are perhaps more comfortable than previous generations. Improving consumer purchasing power, coupled with more liberal attitudes towards personal debt, is contributing to Indias retail banking segment. The combination of above factors promises substantial growth in retail sector, which at present is in the nascent stage. Due to bundling of services and delivery channels, the areas of potential conflicts of interest tend to increase in universal banks and financial conglomerates. Some of the key policy issues relevant to the retail-banking sector are: financial inclusion, responsible lending, and access to finance, long-term savings, financial capability, consumer protection, regulation and financial crime prevention.

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CASE STUDY CANARA BANK PERSONAL BANKING

Canara Bank is the one-stop shop where one can get a complete range of banking products and a number of financial services made available by the bank. Canara Bank is one of the leading commercial banks operating in most of the geographical areas of the country. Now, the bank offers online availability thereby making it easier for the customers to find details on all the products and services offered by the bank. Canarabank.com is the website address of the bank and by making a visit at this website you will come to know how the bank has become a renowned financial institution in the country. Canara Bank can be accessed anytime from anywhere and get the best reliable information on several financial products and services that include:

Savings & Deposits Card Services Loan Products Mutual Funds International Services Technology Products Consultancy Services Depository Services Cash Management Services TUF schemes IPO Monitor Activity Syndication Services NRI Banking Priority & SME Credit Services

General Aspects:
Introduction is necessary as per KYC guidelines and also to get protection under section 131 of NI Act. Introducer satisfactory dealings for one year (6 months for Cansaral) For Current Account - another CA holder has to introduce. If an account holder is not available for introducing, an introduction from a person well known to the Bank (who need not necessarily be our account holder) is required for opening the account. 19

 Responsibility of Introducer : Introducer must know the prospective account holder fully well. Mere acquaintance is not sufficient to introduce. Should there arise any occasion at a later date; the introducer should be in a position to give more details / identify about the a/c holder.This responsibility should be informed to the introducer. All debits of Rs.25,000/- and above in case of SB and Rs.1 lakh and above in case of CA to be authorized by Manager of Department/Branch in charge for first 6 months Withdrawals by way of Withdrawal form exceeding Rs.15,000/- to be authorized b y Manager in charge of dept. Passport size/stamp size Photograph of depositor/authorized signatories Signature on reverse of photo depositor and supervisor Photo not necessary for Pension accounts, employees accounts, term deposits below Rs.10,000/-. PAN: Deposits exceeding Rs.50,000/- by way of cash. Obtain form NF961 (Form 60/61 combined form) in absence of PAN. Form 60/61 is to be submitted to IT authorities of the concerned region, once in 6 months ie upto March in April and upto September in October. Form 60/61 to be obtained in duplicate. It is not necessary to submit form 60/61 obtained for opening SB/CA. As per Section 272 b of IT Act 1961, failure to comply with provisions of submission of form 60/61 shall attract penalty of a sum of Rs.10,000/-

Current Account
For Traders, Businessmen, Corporate bodies etc who operate the account frequently Minimum balance Rs.1000 for Rural / Semi - Urban branches and Rs. 5000 Urban / Metro branches Illiterate persons CA: Manager/SM can take decision and open Accounts with Minor as Proprietor: Should not ordinarily be opened. However there is no bar in opening such accounts, but over drawings not to be permitted. No Interest on CA. Interest at SB rate in case of deceased parties. RRBs sponsored b y us ONLY may be paid interest as advised by HO.

Fixed Deposits (FDR):

Minimum deposit: Rs.1000/- : Maximum no ceiling Period: Minimum 7 days for deposits of Rs.5 lacs and above and 15 days for less than Rs.5 lacs deposits. Maximum 120 months. In case of single deposits of Rs.1 crore and above, wherever closed before maturity- Base Rate with 1% Penal Cut. Monthly Interest: Min. deposit Rs.1000/- and min. period 1 year. If deposit is Rs.10,000/- and above, less than 1 year period also monthly interest payable Payment of additional interest @1.28% over and above interest rate permissible for domestic term deposits : For deposits accepted from Army Group Insurance Directorate, Naval Group Insurance Society and Airforce Insurance Group society

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Credit Card Services: CANARA CARD is a GLOBAL CREDIT CARD from the house of Canara Bank, one of the leading Banks in India, with around 2700 Branches and 34 million loyal customer base. In tune with our tradition of offering quality products with competitive features and best customer service, we are delighted to introduce you to the Canara Global credit Cards, offered to the privileged & elite people of the society. Canara Card is designed to meet your high-end life style with anything you might need to make your experience a sheer pleasure. No matter where you are across the world, luxury and comfort is always at hand. Our cards enjoy the privilege of worldwide acceptance and free insurance coverage. Canara Cards are backed by a wide network of CANARA BANK branches and 24 Card Service centers located at many important cities spread across the country. CANARA BANK is the principal member of VISA-WORLDWIDE and MASTERCARD INC. With its fantastic features and transparency in transactions, you will be delighted to know, why you chose the right card. Please read further to know more about Canara Global cards. CANARA CARD PRIVILEGES

No Annual fee & Enrolment fee till 31.08.2013. (Special offer) Canara Card is accepted throughout the world Minimum Gross income to get CANARA CARD is Rs.60,000 p.a. only. Liberal Card limit. Get 30% of your gross annual income as your Card limit. Fixing of the limit is at the sole discretion of Canara Bank. Cash withdrawal limit up to 50% of your card limit. Cash withdrawal charges only Rs.30 per thousand. Minimum Rs.30 only. Free Credit period from 20-50 days Cash withdrawal facility at all ATMs of Canara bank & other Bank ATMs. No Interest on cash withdrawal if paid by the due date. If not paid by the DUE DATE, interest is charged from DUE DATE only and not from the DATE OF CASH WITHDRAWAL. Opt for Revolving Payment system and pay only 5% of the billed amount and defer the payment. Carried over balance attracts service charges at 2.5% p.m. only. No financial charges! i.e., interest on other transactions subsequent to cash withdrawal till the cash withdrawal is repaid. We provide free accident Insurance to you and your spouse too. Lost Card protection! Liability restricted to Rs.1,000 only from the time of reporting. Free card replacement in case of mutilation / loss of card. Free SMS alerts on billing and transactions above Rs. 3000. Please provide your Mobile Phone number for activating this facility Bonus Loyalty Points: National Electronic Fund Transfer (NEFT) facility available for payment of Card dues. Get free Demand Draft from any of the branches towards payment of your card dues. You can also remit cash or Cheque at any branches of Canara Bank towards repayment of card dues. You may cover your family with Floating Medical Insurance Cover under Family CANARA MEDICLAIM Policy with United India Insurance Company Limited at discounted rates. Avail cashless
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hospitalization facility, at networked hospitals.

CANARA CARD FOR DIFFERENT SEGMENT OF CUSTOMERS The credit card has become a vital part of every one's life on account of benefits derived from it. The cardholder has the privilege of paying for hotels and restaurant expenses, services, shopping Airlines bills, Telephone bills and other shopping needs, through the card. This eliminates the need to carry the cash, which is inconvenient and risky. We offer following range of products backed by excellent customer service: CANARA VISA CLASSIC / MASTERCARD STANDARD GLOBAL CARD CANARA GLOBAL GOLD CARD CANARA CORPORATE CARD ank has started a Joint Venture Insurance Company Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited. The new JV insurance company was launched on 16th of June 2008. In the JV insurance company, Canara bank has a stake of 51%, HSBC Insurance (Asia Pacific) Holdings Ltd 26% and Oriental bank of Commerce 23%. We also act as a Corporate Agent of Our JV Company. For further details log on to www.canarahsbclife.com Click on the Products for more details. 1. 2. 3. 4. 5. 6. Canara HSBC Oriental Bank of Commerce Life Secure Smart Plan Canara HSBC Oriental Bank of Commerce Life Insurance Dream Smart Plan Canara HSBC Oriental Bank of Commerce Life Insurance Grow Smart Plan Canara HSBC Oriental Bank of Commerce Life Pure Term Plan Future Smart Plan Insure Smart Plan

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Canara Bank Online Login

Through its official website Canara Bank offers a number of online banking facilities to retail and corporate customers. Internet banking services can be obtained by making online login to your account after registering with the bank website. Existing customers can provide their user ID and password to login to their account while new users can enroll with the bank website by making an application for net banking. At Canara Bank website, one can also find exclusive details on the latest career options and job openings available with the bank. Job seekers can further find online application forms and details on eligibility criteria of the job vacancies. The bank site also makes it completely easy for the customers to find the bank branches with the help of the branch locator tool. One can further find customer care centers and their contact numbers and address from the bank's website. Loan and Emi calculators are also made available through which borrowers can get a clear understanding of the loan term that they can afford. Canara Bank has different website for Internet banking (www.canarabank.in) where customers can enjoy a number of hassle free services. A visitor can also find notifications, sale notice, tenders, press and media releases from the announcement section of the bank website. For further details, simply visit the website of the bank.

EDUCATION LOAN AND OTHER PRIORITY SECTOR LOANS A. Loans for Students Payment of course fees.Purchase of books, equipments, instruments, uniform, payment of hostel fees, examination fees, study tours, passage expenses (for studies abroad) Studies in India: Graduation, Post-graduation including technical / professional courses Eligible Courses : with employment potential conducted by colleges / Universities approved by UGC / Govt./AICTE/Department of Electronics / IMC, autonomous institutions like IIT,IIM etc. Job oriented, technical / professional courses- (graduation / post Studies abroad: graduation Need based finance Quantum of For studies in India : Max. Rs.10.00 lacs Finance: For studies abroad : Max. Rs.20.00 lacs Purpose:
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Margin

Security:

Repayment

Upto to Rs.4.00 lacs Nil Above Rs.4.00 lacs for studies in India 5% studies abroad : 15% Loan is given jointly to the student and parent /guardian Assignment of future income of the student Upto Rs.4.00 lacs- No security Above Rs.4.00 lacs upto Rs. 7.50 lacs Satisfactory third party guarantee (Note: If the proposed borrower prefers to offer collateral security of tangible assets (moveable or immoveable) instead of bringing collateral securities in the form of third party guarantee, the same may be accepted, at his request, provided the securities with stipulated margin covers 100% of the loan amount). Above Rs. 7.50 lakhs: Collateral security equal to 100% of the loan amount. Commences two years after completion of the course or six months after getting employment, whichever is earlier. Loan with interest is repayable in equated monthly instalments within 5 to 7 years. Credit Delivery Loan can be availed from the branch nearest to the place of permanent residence of the parent / guardian.

B. Laghu Udyami Credit Card Scheme(LUCC) LUCC Scheme is devised to provide hassle free financial support to small business units, retail traders, artisans, village industries, SSIs and tiny units, P & SE and small entrepreneurs. To meet Working capital requirement of small business units, retail traders, artisans, village industries, SSIs. All existing small borrowers of above mentioned categories enjoying aggregate loan / limit of upto Rs 10 lakhs are eligible Borrowers should have satisfactory dealings with the bank for atleast for the last 3 years.borrowers with continuous satisfactory past dealings for a minimum period of 3 years but not having any liability right now can also be issued the card. Maximum upto Rs.10.00 lakhs per borrower (aggregate)

Objective Purpose

Eligibility

Loan Quantum

C. Loan for Retail Traders Purpose Eligibility For meeting the working capital/term-loan requirements. Retail Traders dealing in essential commodities (fair price shops), consumer co-op stores and private retail traders with credit limit not exceeding Rs. 20 lacs.

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D. Loan for Solar Water Heating Systems Purpose To purchase brand new solar water heater systems with necessary accessories Individuals, Institutions, Associations, Small Business establishments, Industrial establishments, Hospitals, Hotels, Hatcheries, SMEs etc.. Salaried individuals should have minimum monthly net take home salary of 25% of their gross salary OR Rs. 2000/- (after meeting the loan instalment) whichever is more. Professionals and other nonsalaried class should have a minimum net yearly income of Rs. 50000/-.

Eligibility

E. Direct Financing to Self Help Groups -To build mutual trust and confidence between the bankers and rural poor through formation of Self Help Groups - To encourage banking activity both in thrift and credit operations. - Credit Assistance to the Group on the extent of Savings mobilised, which varies from 1:1 to 1:4.

Purpose

F. Lending to Micro Credit Groups (MCG) The objective of the scheme is to provide credit to Micro Credit Groups of persons belonging to economically disadvantaged sections of the society, irrespective of the place of residence, for taking up any Income Generating Activities, falling within the purview of priority Sector definition. a) The scheme is applicable to the persons belonging to economically disadvantaged sections of the society irrespective of the place of residence. b) The scheme is applicable only to Micro Credit Groups against the group guarantee. c) The scheme will cover the NGOs/MFIs/MFI-NBFCs for on lending to Micro Credit Groups The finance can be granted for starting/improving/expanding any type of income generating activity. Finance can also be given for agriculture and allied activity. The finance may be provided so as to enable the group members to improve their earning and living standard.
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OBJECTIVE:

COVERAGE:

PURPOSE:

QUANTUM:

The limit permitted is Rs.50000/- per member, with a maximum of Rs.500000/- per group. The loan for the debt swap could also be given to the members up to a maximum of Rs.25000/-, within the overall limit of Rs.50000/- permitted per borrower.

Credit Guarantee Fund for Micro And Small Enterprises (CGMSE)

(Cir no.187/2007, 104/2009, 422/09, 66/2010, 103/2010) Guarantee Fee / Annual Service Fee (ASF): Credit Facility Upfront one Time Guarantee Fee North East Region Others (including Sikkim) 0.75% 1.00% 0.75% 1.50% 1.50% 1.50% Annual Service Fee

Upto Rs.5 lakh Above Rs.5 lakh to Rs.50 lakh Above Rs. 50 lakh to Rs.100 lakh

0.50% 0.75% 0.75%

Extent of the guarantee w.e.f.02-01-2009: Category Maximum extent of Guarantee where credit facility is Upto Rs.5 lakh AboveRs.5 up Above Rs.50 lakh upto Rs.100 lakh to Rs.50 lakh Micro Enterprises 85% of the 75% / Rs.37.50 lakh plus 50% of amount in Rs.37.50 lakh amount in default above default subject Rs.50 lakh subject to overall to a maximum ceiling of Rs.62.50 lakh of Rs.4.25 lakh Women entrepreneurs/ Rs.40 lakh plus 50% of amount Units located in North in default above Rs.50 lakh East Region (incl. 80% of the amount in default subject to overall ceiling of Sikkim) other than subject to a maximum of Rs.40 Rs.65 lakh credit facility upto Rs.5 lakh lakh to micro enterprises

All other category of borrowers

75% / Rs.37.50 lakh

Rs.37.50 lakh plus 50% of amount in default above Rs.50 lakh subject to overall ceiling of Rs.62.50 lakh

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ICICI BANK
PERSONAL BANKING

PRODUCT AT GLANCE LOANS

Online Loans Home Loans Loan Against Property Personal Loans Car loan Two Wheeler Commercial Vehicle Loans against Securities Loan Against Gold Farm Equipment Construction Equipment Office Equipment Medical Equipment Pre-approved Loans Retail Assets Branches FlexiCash Farmer Finance Rural Housing Finance Retail Warehouse Receipt Based Finance Business Instalment Loans Aquaculture Finance
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Horticulture Finance Self Help Group Finance Channels Terminated

ACCOUNTS & DEPOSITS

Savings Account Special Savings Account Life Plus Senior Citizens Savings Account Fixed Deposits Security Deposits Recurring Deposits Tax-Saver Fixed Deposit Young Stars Savings Account Child Education Plan Bank@Campus Salary Account Advantage Woman Savings Account EEFC Account Resident Foreign Currency (Domestic) Account Privilege Banking No Frills Account Rural Savings Account People's Savings Account Self Help Group Accounts Outward Remittance Freedom Savings Account Common Service Charges

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CARDS
Consumer Cards Credit Card Travel Card Debit Cards Commercial Cards Corporate Cards Prepaid Cards Purchase Card Distribution Cards Business Card

INVESTMENT [Tax Saving]

ICICI Bank Bonds [ICICI Bank Tax Saving Bonds] GOI Bonds [Government of India Bonds] Mutual Funds [Investment in Mutual Funds] IPO [Initial Public Offers by Corporates] ICICI Bank Pure Gold [Investment in "Pure Gold"] Forex Services [Foreign Exchange Services] Senior Citizens Savings Scheme, 2004

INSURANCE
Health Insurance Overseas Travel Insurance Student Medical Insurance Motor Insurance Home Insurance Life Insurance
29

DEMAT
Overview Account Opening ISIN Lookup Settlement Calendar Charges Digitally Signed Statement Mobile Banking Service Request Forms Access Account Online Membership Guide Demat Branches FAQs and Basic Concepts Guidance Procedure for Transmission of Shares

ONLINE SERVICES
Branchfree Banking smsNcash Bill Payment (New Billers Added) Receive Funds Funds Transfer Convert to EMI Smart Money Order Prepaid Mobile Recharge Ticket Booking Online Tax Calculation Account to Card Transfer
30

Mobile Banking Funds Transfer Mobile Banking [iMobile] Shopping Share Trading Special Promotions & offers Online Loans and Credit Cards Demand Draft Online Mumbai Suburban Season Ticket Instant Voice Response (IVR) Banking ATM Banking

ICICI BANK PERSONAL LOANS

ICICI Bank Personal Loan provides with instant money

for a wide range of your personal needs like, renovation of home, marriage in the family, a holiday with family, child's education, Medical expenses or any other emergencies.

Key Benefits of ICICI Bank Personal Loan

Loan up to 15 lacs No security/guarantor required Faster Processing Minimum Documentation Attractive Interest Rates 12-60 Months repayment options Loans available for both salaried & self employed individuals Loan on Phone" facility

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ELIGIBILITY

Criteria
Age Net Salary

Salaried
25 yrs. - 58 yrs.

Self - Employed
25 yrs. - 65 yrs.

Net annual income - Rs. Net Profit after tax - Rs. 96,000 p.a 150000 p.a MBA's, CA's, Traders &

Eligibility

Employees of Public Ltd. Doctors, companies, companies, Private Ltd. Architects,

Government Engineers,

companies or MNCs. Years in 1 Year

Manufacturers 3 Years

current job / profession Years current residence in 1 Year 1 Year

DOCUMENTATION

Documents (Pre Sanction)

Latest 3 months Bank Statement (where salary/income is credited) 3 Latest salary slips Last 2 years ITR with computation of income / Certified Financials

Salaried
Yes Yes

Self Employed
Yes

Yes

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Proof of Turnover (Latest Sales / Service tax returns) Proof of Continuity current job (Form 16 / Company appointment letter ) Proof of Continuity current profession (IT Returns / Certificate of business continuity issued by the bank) Proof of Identity (any one) Passport / Driving License / Voters ID / PAN card / Photo Credit Card / Employee ID card Proof of Residence (any one) Ration Card / Utility bill / LIC Policy Receipt Proof of Office (any one) Lease deed / Utility bill / Municipal Tax receipt / title deed Proof of Qualification Highest Degree (for Professionals / Govt employees Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

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CHANGING MODE OF REPAYMENT

If you wish to change the mode of repayment of the ICICI personal loan, this needs to be done with the permission of ICICI bank. Stopping payments on post-dated cheques or otherwise cancelling or revoking mandates would be considered 'committed with a criminal intent' according to the ICICI terms and conditions.

SERVICE CHARGES
Prepayment of the loan is possible after 180 days of availing the loan. Foreclosure charges as applicable would be levied on the outstanding loan. Part pre-payment is not allowed. No other fees or commitment charges are levied.

Description of Charges
Loan Processing Charges / Origination Charges Prepayment Charges Charges for late payment (loans) Cheque Swap Charges Cheque bounce charges

Personal Loans
2* % of loan amount + Origination Charges of 1.5% of loan amount 5% on the principal outstanding 2% per month Rs. 500/Rs. 200/-

34

BANKS AT CAMPUS: BENEFITS

Technology-enabled service, through automated channels, without physical branch access.

Benefits to the student

Free Internet Banking Free Phone Banking (in select cities*) Free ICICI Bank Ncash Debit Card Free Access to any Bank's ATM Other Benefits

Free Internet Banking

Enquire about balance Download detailed statement of accounts View details of all accounts maintained with ICICI Bank Transfer funds between your account and any other ICICI Bank account

Pay your utility bills-mobile, electricity and telephone bills Request a cheque book and demand drafts Request to stop payment of cheque Report your lost Debit cards Open Fixed and Recurring deposits online Access information on personal finance, computing & the Internet, e-commerce, lifestyle etc.

Liaise with your Account Manager Invest in mutual funds

35

Free Phone Banking

Enquire about balance Request a tele-draft Obtain mini-statements Request a cheque book Request to stop payment of cheque Intimate lost Debit card Transfer funds between ICICI Bank accounts

Other Benefits

Own a chequebook personalised with your name. Receive an annual statement of account

ELIGIBILITY

You must be a student. You have to be above 18 years of age.

36

DOCUMENTATION Documentation guidelines for student accounts

Verified True Copy of college identification documents with photograph of the applicant. (Such college shall be one of the colleges recognized by an Indian University / Technical Body or a deemed University.)

Mandatory information to be provided in account opening form includes

Basic details like name, current address, permanent address, phone numbers, date of birth, nationality, residential status should be captured in Account Opening Form.

College and course particulars including end date for the course. Details of parents / guardian - name, address, phone numbers, nationality, residential status.

Photograph and signature Expected international transfer of funds in the case of foreign students.

INTEREST RATES: 3.50%

37

SERVICE CHARGES AND FEES

Bank@Campus
Available to All cities Students pursuing pre-approved Eligibility courses only and b/w 18-27 yrs of age

Minimum average quarterly balance

Rs 500

Charges for non maintenance of minimum quarterly average balance

Rs.250 per quarter

Cash transactions at base branch (branches in same city)

No Branch Access for cash transactions

ATM Interchange (Transactions at Non ICICI Bank ATMs)

Rs.18 per cash withdrawal and balance enquiry - Free. Rs.50 per D.D. up to Rs.10, 000; Rs.3 per thousand rupees or part

Issue of DD drawn on ICICI Bank by cheque/transfer

thereof for DD of more than Rs.10,000, subject to a minimum of Rs.75 and maximum of Rs. 15,000 Free Annual statement

Statement

38

Free monthly e-mail statement on request

Debit Card Fees for first Account Holder

Free

Debit Card Fees for joint Account Holder

Free

Daily spending/withdrawal limit: Debit Card Cash withdrawal limit 25,000/25,000 Free

Internet Banking

Phone Banking

Free

Mobile Banking

Free

Cheque Books

Free, Order & A/c payee only

ATM Transaction

Unlimited Free of Cost

Cheque collection charges from upcountry locations (I-Bank branch)

Free

Cheque collection charges from upcountry locations (Non I-Bank branch)

39

Free

HDFC BANK
PERSONAL BANKING PRODUCT AT GLANCE ACCOUNTS & DEPOSITS
Savings Accounts Regular Savings Account Savings Plus Account SavingsMax Account No Frills Account Institutional Savings Account

Salary Accounts Payroll Classic Regular Premium Defence Reimbursement Current Account Kid's Advantage Account Pension Saving Bank Account Family Savings Group Kisan No Frills Savings Kisan Club Savings

Current Accounts Plus Current Account

40

Trade Current Account Premium Current Account Regular Current Account RFC - Domestic Account Flexi Current Account Apex Current Account Max Current Account

Fixed Deposits Regular Fixed Deposit 5 Year Tax Saving Fixed Deposit Super Saver Facility Sweep-in Facility Demat Account Safe Deposit Lockers

LOANS
Personal Loans Home Loans Two Wheeler Loans New Car Loans Used Car Loans Express Loans Plus Gold Loan Educational Loan Loan Against Securities Loan Against Property Loans Against Rental Receivables
41

Health Care Finance Tractor Loans Commercial Vehicle Finance Working Capital Finance Construction Equipment Finance Warehouse Receipt Loans

CARDS
Credit Cards Silver Credit Card Value Plus Credit Card Health Plus Credit Card Gold Credit Card Titanium Credit Card Woman's Gold Credit Card Platinum Plus Credit Card Visa Signature Credit Card World MasterCard Credit Card Corporate Credit Card Business Credit Card

Debit Cards EasyShop International Debit Card EasyShop Gold Debit Card EasyShop International Business Debit Card EasyShop Woman's Advantage Debit Card EasyShop NRO Debit Card Kisan Card
42

Prepaid Cards ForexPlus Card GiftPlus Card FoodPlus Card MoneyPlus Card

INVESTMENTS & INSURANCE

Mutual Funds General & Health Insurance Bonds Knowledge Centre Equities & Derivatives Mudra Gold Bar

PAYMENT SERVICES
NetSafe Merchant Services Prepaid Refill BillPay Visa BillPay InstaPay DirectPay Visa Money Transfer e-Monies Electronic Funds Transfer Excise & Service Tax Payment Online Payment of Direct Tax
43

Religious Offerings Donate to Charity

ACCESS YOUR BANK

NetBanking OneView InstaAlerts MobileBanking ATM PhoneBanking Email Statements Branch Network

44

HDFC BANK PERSONAL LOANS

FEATURES & BENEFITS
Borrow up to Rs 15, 00,000 for any purpose depending on your requirements. Flexible Repayment options, ranging from 12 to 60 months. Repay with easy EMIs. One of the lowest interest rates. Hassle free loans - No guarantor/security/collateral required. Speedy loan approval. Convenience of service at your doorstep. Customer privileges If you are an HDFC Bank account holder, we have special rates for you. If you are an existing Auto Loan customer with a clear repayment of 12 months or more from any of our approved financiers or us, you can get a hassle free personal loan (without income documentation). If you are an existing HDFC Bank Personal Loan customer with a clear repayment of 12 months or more, we can TopUp your personal loan.

Credit Shield In case of death or total permanent disability of the loanee, the loanee/nominee can avail of the Payment Protection Insurance (Credit Shield) which insures the principle outstanding on the loan upto a maximum of the loan amount. Principle outstanding is
45

defined as the amount of loan outstanding (not including any arrears in payment or interest thereon) at the Date of Loss, having accounted for payments made and interest accruing as determined in the Policy. Hence, the amount covered does not include any principal added because of non - payment of EMI and also will not include interest/ accrued charges.

Personal Accident Cover In order to ensure that your family is taken care of we also offer a Personal Accident cover of Rs.2,00,000 at a nominal premium.

ELIGIBILITY & DOCUMENTATION

SALARIED INDIVIDUALS Salaried Individuals include Salaried Doctors, CAs, employees of select Public and Private limited companies, Government Sector employees including public sector undertakings and central, state and local bodies:

Eligibility Criteria Minimum age of Applicant: 21 years Maximum age of Applicant at loan maturity: 60 years Minimum employment: Minimum 2 years in employment and minimum 1 year in the current organization Minimum Net Monthly Income: Rs. 8,000 p.m (Rs. 10,000 in select cities)
46

Documents required Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence) Address Proof (Ration card Tel/Elect. Bill/ Rental agr. / Passport copy/Trade licence /Est./Sales Tax certificate) Bank Statements (latest 3 months bank statement / 6 months bank passbook) Latest salary slip or current dated salary certificate with latest Form 16 SELF EMPLOYED (PROFESSIONALS) Self employed (Professionals) include self - employed Doctors, Chartered Accountants, Engineers, MBA Consultants, Architects, and Company Secretaries.

Eligibility Criteria Minimum age of Applicant: 25 years Maximum age of Applicant at loan maturity: 65 years Years in business: 4 to 7 years depending on profession Minimum Annual Income: Rs. 100000 p.a. Documents required Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence). Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade licence /Est./Sales Tax certificate). Bank Statements(latest 6 months bank statement /passbook)

47

Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA Qualification proof of the highest professional degree

SELF EMPLOYED (INDIVIDUALS) Self Employed (Individuals) include self-employed - Sole proprietors, Partners & Directors in the Business of Manufacturing, Trading or Services. Eligibility Criteria Minimum age of Applicant: 21 years Maximum age of Applicant at loan maturity: 65 years Years in business: 5 yrs continuous business experience Minimum Annual Income: Rs. 1, 00, 000 p.a. Available in select cities Documents required Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence) Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade licence /Est./Sales Tax certificate) Bank Statements(latest 6 months bank statement /passbook) Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA Proof of continuation (Trade licence /Establishment /Sales Tax certificate) Other Mandatory Documents (Sole Prop. Decl. Or Cert. Copy of Partnership Deed, Cert. Copy of MOA, AOA & Board resolution.)
48

SELF EMPLOYED (PVT COS AND PARTNERSHIP FIRMS) Self Employed (Pvt. Cos and Partnership Firms) include Private Companies and Partnership firms in the Business of Manufacturing, Trading or Services

Eligibility Criteria Years in business: Minimum of 3 years in current business and 5 years total business experience Business must be profit making for the last 2 years Minimum Annual Income: Rs 100000 p.a. Available in select cities Documents required Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade licence /Est./Sales Tax certificate) Bank Statements(latest 6 months bank statement /passbook) Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA Proof of continuation (Trade licence /Establishment /Sales Tax certificate) Other Mandatory Documents (Sole Prop. Decl. Or Cert. Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original).

BALANCE TRANSFER

49

If you have a personal loan from any other bank with a clean repayment record, simply transfer the loan to us and save substantially.

Benefits
Minimal processing fees. No income documentation. Fast Processing. Repayment through Standing Instruction facility.

FEES & CHARGES FOR PERSONAL LOAN

Description of Charges
Loan Processing Charges

Personal Loan
Upto a maximum 2% of the loan amount

Pre-payment charges

Upto 4% of the Principal Outstanding

No Due Certificate / No Objection Certificate (NOC) Charges for late payment of EMI

Nil @ 24 % p.a on amount outstanding from date of default

Charges for changing from fixed to floating rate of interest

Not applicable

50

Charges for changing from fixed to floating rate of interest Charges for changing from floating to fixed rate of interest Stamp Duty & other statutory charges Credit assessment charges Non standard repayment charges Cheque swapping charges Loan cancellation / re-booking charges / Re-scheduling Bounce Cheque Charges Statement Charges (per statement)/ Repayment Schedule Legal / incidental charges

Not applicable

Not applicable

As per applicable laws of the state Not applicable Not applicable Upto Rs 500/- per event Upto Rs 1000/Upto Rs 450/- per Bouncing Upto Rs 500/At actual

5YEAR TAX SAVING FIXED DEPOSIT

FEATURES & BENEFITS

Minimum Amount: Rs.100/Multiples of Rs.100/Maximum Amount: Rs. 1 lac (in a FY) Tenure - 5 years (lock in period) Rate of Interest -9.50% p.a, Senior Citizen rate - 10.00%
51

No Partial/Premature withdrawal allowed Sweep-in not allowed No OD or pledge allowed In the case of joint holder deposit, the deduction from income under section 80C of the Act shall be available only to the first holder of the deposit.

ELIGIBILITY
The following can apply for a 5 Year Tax Saving Fixed Deposit Resident Individuals Hindu Undivided Families An initial deposit of Rs. 100/- is required to open a Tax Saving Fixed Deposit.

INTEREST RATES
When you open a Fixed deposit with HDFC Bank Your interest is calculated on a quarterly basis Interest for re-investment is calculated every quarter, and the Principal is increased to include interest earned during the previous quarter. Tax at source is deducted as per the Income Tax regulations prevalent from time to time.

RATE of INTEREST
Normal rate: 9.50% p.a. Senior Citizen rate: 10.00%
52

TAX DEDUCTIONS
Tax Deductions For Re-Investment Fixed Deposits The following will be applicable for a 5 Year Tax Saving Fixed Deposit TDS will be deducted when interest payable or reinvested per customer, per branch, exceeds Rs 10,000 in a financial year. A consolidated Annual TDS Certificate will be mailed to you after the end of the financial year, including details of all TDS deductions during the year.

Applicable TDS Rates

Resident Individuals & HUF

Tax Rate

Surcharge

Education Cess

TOTAL

Payment upto 10 lacs

10%

----

3%

10.30%

Payment equal to & above 10 lacs

10%

10%

3%

11.33%

If you are exempt from paying tax, you need to present Form 15H when you open a Fixed Deposit and subsequently at the beginning of the following financial year.

53

At the end of the financial year, the TDS will be deducted on the basis of interest accrued on the Fixed Deposit (s) even if this interest has not been credited.

54

CONCLUSIONS

Retail banking is the fastest growing sector of the banking industry

with the key success by attending directly the needs of the end customers is having glorious future in coming years. Retail banking sector as a whole is facing a lot of competition ever since financial sector reforms were started in the country. Walk-in business is a thing of past and banks are now on their toes to capture business. Banks therefore, are now competing for increasing their retail business. There is a need for constant innovation in retail banking. This requires product development and differentiation, micro-planning, marketing, prudent pricing, customization, technological upgradation, home / electronic / mobile banking, effective risk management and asset liability management techniques. While retail banking offers phenomenal opportunities for growth, the challenges are equally discouraging. How far the retail banking is able to lead growth of banking industry in future would depend upon the capacity building of banks to meet the challenges and make use of opportunities profitably. However, the kind of technology used and the efficiency of operations would provide the much needed competitive edge for success in retail banking business. Furthermore, in all these customer interest is of chief importance. The banking sector in India is representing this and I do hope they would continue to succeed in this traded path.

55

BIBLIOGRAPHY
http://www.google.com www.canarabank.com www.hdfcbank.com www.icicibank.com www.citehr.com

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