Baroda Salary Advantage

8/2/2019 Baroda Salary Advantage

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BCC:BR:98:182 July 10,

2006

CIRCULAR TO ALL BRANCHES AND OFFICES IN INDIA

Sub. File Deposit 1

ISSUED BY RETAIL BANKING DEPARTMENT

Dear Sir,

Re: Retail Banking: Introduction of BARODA SALARY ADVANTAGE SAVINGS

ACCOUNT a Savings Bank product with an in built feature of granting

overdraft facility to the salaried persons.

At present Bank has a product known as Baroda Personal Loan for meeting

various

medium term financial needs of individuals. The product has received very

good

response due to its hassle free and customer friendly nature.

However, many a times, salaried persons need small amounts for the short

period (i.e.

up to payment of next salary to them) to tide over their emergent unexpected

expenses

viz. sudden illness of any family member, school payments etc.

Therefore, a need was felt for introducing a new Savings Bank product with

provision of

allowing overdraft to the employees in their account to bridge the time gap till

payment

of salary for current / next month. Accordingly, a new Savings Bank product

has been

developed containing these features.

You may be aware that Bank had a product known as Family Budget Plan which

was

having a provision of granting overdraft equivalent to one month salary in

savings bank


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account of employees of Central / State Govts. However, in those days, most of

the

employees were getting salary in cash from their employees. Hence, follow up

with

employees for crediting salary every month in the account was one of the

major

problems encountered by branches.

Learning from our past experience, it has been specified that product shall be

offered to

those employees only who are maintaining satisfactorily conducted salary

accounts with

the branch for at least last three months.

The detailed product profile is as per Annexure I.

Due to introduction of cash transaction tax, now all the corporations,

companies, other

business entities have started paying salary to the employees by credit in their

accounts

with concerned Banks. Similarly most of the Central / State Govt. employees

are also

getting salary through the credits in their accounts. Therefore, branches may

contact

salary-disbursing authorities in various government departments / Corporations

/

Companies/ Institutions operating in their area and mobilize the salary

accounts of their

employees.

OTHER ISSUES:

CBS, BIBAS and BOBLAN Systems support the product while such features are

not

available in ISBS system, therefore, branches under CBS, BIBAS and BOBLAN


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shall only be able to offer this product to their customers. With a view to

simplify the sanction procedure, a simplified application cum

sanction memo (Annexure II) has been devised, which may be used for

considering proposals received under the product. The branches may get typed

/

cyclostyled or printed the Application Cum Sanction memo as per their

local requirement.

Form No. 117-A on borrower/ guarantor need not be prepared.

This is basically a Savings Bank product, hence, all other rules governing the

Savings Bank accounts will be applicable to such accounts, mutatis mutandis.

All overdrafts in such savings bank accounts shall be reported in the WeeklyForm

No.153 along with balances in other overdraft accounts, as being done in case

of

ODs / TODs in current accounts / other savings bank accounts.

The CBS, BIBAS and BOBLAN branches should aggressively sell this product to

eligible employees in their operational area. Progress achieved under the

product

should be reported by incorporating the same in monthly statement of Retail

Banking to

their Regional Office who in turn will submit us consolidated data regularly on

monthly

basis.

Yours faithfully,

(Ajai Kumar)

Dy. General Manager

(Retail Banking)

Encl. As above. ANNEXURE - I

PRODUCT NATURE :


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This is basically a Savings Bank Deposit product having an in built feature of

overdraft

facility to the salaried persons as per eligibility criteria.

TARGET GROUP :

The product is targeted to mobilize salary accounts of employees.

MINIMUM AMOUNT & BALANCE :

All branches irrespective of area classification can open accounts with zero

balance. There is

no minimum balance requirement in the account and as such no service

charges shall be

levied towards this.

MAXIMUM AMOUNT :

There shall be no ceiling on the amount to be deposited and credit balance

in the account.

Special Features of the product:

The branch SHALL offer Overdraft facility (Clean/unsecured) to employees

who fulfill the

eligibility criteria mentioned hereunder to meet out their emergent short-term

family needs,

on following terms and conditions:

ELIGIBILITY CRITERIA :

Regular Employees of State / Central Government, Public Sector Undertakings,

Semi

government Organization, State / Central Govt. Corporations, Urban

Development

Authorities, Educational Institutions, Universities, MNCs, reputed Public Ltd

Companies

with minimum one year service with the organization

Employees of Private Limited Companies may be considered by Regional

Authorities on


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selective basis after ascertaining their standing and banking relationship with

us, if any.

Minimum age of 21 years.

Minimum take home Salary should not be less than Rs. 5000/-.

Maintaining satisfactorily conducted salary account with the Bank at least for

three

months.

Overdraft Limit:

90% of net salary of average of last three months subject to Maximum of

Rs.1 lac.

Interest Rate & Procedure for Application:

On Credit Balance : The customer shall earn interest on credit balance in the

account

as per savings bank account rules viz. relating to periodicity, rate and system

of

application of interest, computation of eligible balances etc.

On Debit balance : In case of overdraft in the account, interest shall be

charged @

1.5% above BPLR i.e. 12.5% p.a. with monthly rests. A Minimum interest of Rs.

10/-

shall be charged during a month if OD is availed.

Processing & Documentation Charges:

0.50% of limit sanctioned / reviewed subject to minimum of Rs. 100/- +

service tax as

applicable.

Period : 12 months, subject to annual review.

Baroda Salary Advantage Savings Account Security:

Third party guarantee shall be obtained. Cross guarantee may be

accepted.

Documents:


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D. P. Note.

A single document shall be obtained from the customer (Annexure - III).

General form of Guarantee.

Documents to be submitted by applicant:

Application Form as per Annexure - II.

Employers Certificate as per Annexure - II.

(Form No. 135 and 117 - A are dispensed with).

Liquidation of Overdraft:

The account is to be brought into credit once in 60 days.

Other conditions:

The facility is to be offered to the employees of such organizations, which are

financially sound and paying the salary to its employees regularly.

The Conduct of the salary account and other loan accounts, is to be

satisfactory.

Employee should not be under suspension.

After sanction of facility, the Branch to monitor the accounts by verifying the

credit of

salary in the accounts each month.

All overdrafts in such savings bank account shall be reported in the weekly

Form 153

along with balance in other overdraft accounts, as being done in the case of

TODs/ODs in current accounts.

Discretionary Lending Powers:

The branches may consider the proposals falling within their lending powers

for unsecured

advance as per grade/scale of the Branch Head. Any proposal beyond their

power shall be

referred to next authority.


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Sanction of facility:

The branch should scan salary savings bank accounts wherever the salary is

being

credited since last three months and the conduct of the account is satisfactory.

The

Branch Manager should satisfy himself about the financial soundness of the

employer

before considering the facility.

No detailed sanction of the proposal is required to be prepared. Form. No.

117-A on

borrower / guarantor need not be prepared. Simplified sanction memo as per

Annexure-II is to be used. Reporting for PSR purposes to be done as usual.

OTHER SALIENT FEATURES :

Other rules governing the Savings Bank a/c will also be applicable to such

account

mutatis mutandis.

Cheque-books shall be issued free of charges for routine requirement.

However, in

case of bulk requirements such as giving PDCs for loans availed / to be availed

from

other banks/ institutions / Finance Companies, normal cheque book charges

shall be

levied.

Staff members shall not be eligible to avail facility under the product.

RETAIL BANKING DEPTT.

BARODA CORPORATE CENTRE

MUMBAI. Annexure II

APPLICATION FORM FOR BARODA SALARY ADVANTAGE SAVINGS ACCOUNT

The Branch Manager,


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Bank of Baroda

__________________

__________________

Dear Sir,

I am having a SB Account No. with your branch since . I

hereby

request you to sanction me an Overdraft Limit of Rs._______

(Rs.______________________________) for meeting my emergent family needs. I

shall abide by the terms and conditions stipulated by the Bank in this regard. I

submit

my brief particulars hereunder:

1. Full Name: Fathers Name:

2. Name and address of the present employer:______________________________

_________________________________________________________________

3. Employee Code No Designation

4. Date of Birth Date of Joining

5. Nature of Employment: Regular / Temporary /On contract

6. Whether the job is transferable :Yes / No

7. Gross Emoluments (for month of ) :Rs.

Deductions :Rs.

Net Emoluments :Rs.____________________

8. Present residential address___________________________________________

________________________________________________________________

Phone No.(R)_____________(O)____________MobileNo.___________

e-mail___________

9. Permanent Address_________________________________________________

__________________________________________________


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10. Name & Address of the proposed Guarantor:

______________________________________________________________________

______________________________________________________________________

11. Details of guarantors occupation :________________________________

Phone No. (O)_______________(Res.)___________________SB A/c No.__________

Place: (Signature of

Applicant)

(The information already available with the branch about applicant shall be

filled in by

branch itself.) CERTIFICATE TO BE ISSUED BY EMPLOYER

This is to certify that Shri / Mrs. / Ms. ________________________________________

is a regular employee of our organization / institution.

The aforesaid information provided by the applicant is true and correct as per

our

records.

Signature

Place: (Head of the Dept. / Salary Disbursing

Authority)

Date: Name:

Designation :

Official stamp:

______________________________________________________________________

FOR OFFICE USE

(PROCESSING CUM SANCTION MEMO)

A/c Mr. SB A/c No.

1. Month from which salary is disbursed through above account:


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_______________

2. Amount of Salary for the month of , 200.. credited in the account:

Rs._______

3. Conduct of SB Account and other Loan accounts, if any:

Satisfactory/unsatisfactory/

_______

4. Overdraft Limit: Rs.

5. Rate of Interest: ----%above BPLR Min. _____ p.a. with monthly rest.

Minimum amount of interest if overdraft is taken during a month: Rs.10/-

6. Personal guarantee of Mr.:_____________________________________________

____________________________________________________________________

(name & address of the guarantor)

7. Period : 12 Months.

8. Documents:

D. P. Note.

Stamped undertaking to be singed by the borrower.

General Form of Guarantee.

Recommended Sanctioned

Incharge, Chief / Senior / Branch Manager

Savings Bank Dept.

Date: _________________ _______________________

Annexure - III

Stamp

as an Agreement

The Branch Manager Dated:


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Bank of Baroda

________ Branch

Dear Sir,

In consideration of your having agreed to my request to open Baroda SalaryAdvantage

Savings Account (with Over Draft facility) in my name, I hereby irrovocably

undertake,

assure and declare:

1. I have read and understood the rules of the said scheme; I fulfill the

eligibility

criteria therein specified and I shall abide by the same.

2. I am a Savings Bank Account Holder of your branch bearing Account

No.______

for the past __________ months/years.

3. I am a confirmed employee of ____________________ which is a (State /

Central Government / Public Sector Undertaking / Semi Government

Organization, State / Central Government Corporation, Urban Development

Authorities / Educational Institutions / University / MNCs / Public Ltd.

Company).

4. I hereby agree to pay the documentation and processing charges as may be

applicable from time to time together with service tax as applicable.

5. I am working in the aforesaid organisation for the past ________ years. My

salary account is maintained with your branch for the past ______ years,

wherein

the current minimum take home salary is Rs.________ (Rupees

______________only).

6. That with reference to the Demand Promissory Note for Rs._________ (Rupees

_____________________ only) executed by me in favour of the Bank and


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handed over to you to be held against the account in the name of _______ , I

hereby place on record the fact that the said Demand Promissory Note is to be

treated as Continuing Security for the balance, interest and other charges from

time to time due to the Bank and the said Baroda Salary Advantage Savings

Account (Over Draft facility) is not to be considered as closed for the purpose

of

this security and the security is not to be considered exhausted by reason of

the

said Baroda Salary Advantage Savings Account (Over Draft facility) being

brought to credit at any time or from time to time.

7. I confirm that the balance at the debit of my account is repayable ondemand. I

further agree and confirm that you may without any notice to me, increase the

rate of interest specified in the said Demand Promissory Note as and when the

Benchmark Prime Lending Rate (BPLR) undergoes any change.

8. I agree that upon availing the said facility I shall bring the account into credit

periodically i.e. at least once in every sixty (60) days and route all the

transactions through the account only.

DRAFT

UNDERTAKING9. I further agree and confirm that I shall bear and pay interest

at the rate of _____

% over Benchmark Prime Lending Rate of the Bank per annum with monthly

rests or at such rate or rates as the Bank may specify to me in writing in

accordance with the Banks Benchmark prime lending rate from time to time.

However, in case, overdraft is availed by me in any month, I agree to pay a

minimum interest of Rs.10/- (Rupees Ten only) per calendar month. In case of

credit balance I shall earn interest on credit balance in the account as per

savings bank account rules viz. relating to periodicity, rate and system of


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application of interest, computation of eligible balances, etc.

10. I further place on record the fact that there is no mortgage or lien of any

kind

whatsoever created on my properties and that I undertake not to create any

mortgage or lien of whatsoever kind or nature over the same; nor to sell or

alienate any of my immovable properties or assets of capital nature until all the

debts due by me to Bank of Baroda are fully paid. I know that it is on the faith,

the

representations and undertakings contained herein the Bank has agreed to

open

the said account.

11. I hereby agree as a condition of such Over Draft facility extended to me by

you

that in case I commit default in the repayment of such Over Draft facility or in

the

payment of interest thereon or in case of persistent irregularity, you and/or

Reserve Bank of India will have an unqualified right to disclose or publish my

name as defaulter in such manner and through such medium as you or

Reserve

Bank of India in your/their absolute discretion may think fit.

12. The said account will be operated by me and the indebtedness caused by

such

drawings from time to time will be of mine. I shall operate the said account at

all

times within the overdraft limit of Rs.___________ fixed by you w.e.f._________.

13. I further confirm that in the event of the advance remaining outstanding for

a

longer period than 60 days at a time, I shall adjust the said overdraft account

immediately with interest, additional interest and penal interest if any, fixed by

you from time to time.


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14. I further confirm that this facility allowed to me as per my request is in your

absolute discretion and may be discontinued by you at any time without any

previous intimation to me.

15. I understand that it is on the faith of this irrevocable undertaking that youhave

agreed to grant the facility as aforesaid.

Yours faithfully

(Signature)

Name :

A/c. No :

Address: