function and structure of world bank

INTRODUCTION

Banking sector is the first and most important aspect of the

economic-planning of a nation for the faster and speedy development of a

nation; well-development and advanced banking sector is the precondition.

In the most of developed countries of the world, there is very close relation

between the business activities and banks. It is quite difficult to think the

business activities without the existence in economy as blood in human

body.

Thus, we can say that, there is a noteworthy contribution of banking

sector in the development of various fields such as, agriculture, industries

business activities, transportation and communication.

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ORIGIN OF THE BANK

There are different views about origin of word “Bank is originated

from word “Branches” or “Bonque”, which mean bench. Ancient bankers

of Lombardo used to do business by setting on their “Bancus” and if any

banker failed then his “Bancus” was broken by people and he was known

as “Bankrupt” that’s how the moral bank” is originated.

Some other experts view that word “Bank ” is originated from

German word “Bank” which means “Joint capital” when Germany won

major part of Itly, that time, the word “Bank” was pronounced as “Banco”

by people of Italian origin and over the time it got converted in the word

“Bank”

Definition

“Banking Company is a company, which transects the business of

banking in any state of India.”

Sections (5) of banking company act 1949.

“Banking means where financial transactions of credit are done and

bank means where draft, cheque, or credit paid by order, deposits of

money or currency are accepted or assets, bonds, gold, silver, bills of

exchange or promissory notes are accepted that kinds of persons firms or

companies having the place of business.”

Findlay Sheraze

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“Banking means the acceptance for the purpose of lending or

investment of deposits of money from the public repayable on demand

otherwise withdrawal by cheque, drafts etc.

Sections (5) of banking company act 1949

“A ‘bank’ or ‘banker’ is one who, in the ordinary course of his

business receives money which he repays by honoring the cheques of

persons from whom or on whose or on whose account he receives it.”

Prof. Hart

Banks are institutions whose debts usually referred to as “ Bank

deposits are commonly accepted in final statement of other people’s

debts.”

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BANKING STRUCTURE IN INDIA:

Reserve Bank of India

Commercial Development Exim Bank Bank Bank

State Co. Op. Foreign bank Indian Bank Bank

RRBS

NABARD Public Sector Private Sector

RRBS Regional Rural Banks NABARD State Bank & Nationalized National Bank for AgricultureIt’s Subsidiary Bank and Rural Development

Reserve Bank of India (R.B.I)

Foundation: 1st April 1935 (as a private bank)

Nationalization: 1st January 1949

First Governor: Sir Obsborl Ardsmith (1935-1937)

First Indian Governor: C.D.Deshmukh (1943-1949)

Governor of Present: Bimal Jalan

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Foundation of RBI: -

Manages currency notes of all denominators except one rupee

note

As a banker of Government, state Government, Commercial and

co-operative banks.

Monetary regulations

Regulations on exchange value of rupee.

As a represents Govt. of India in International Monetary India in

International Monetary Fund (IMF)

Function of Reserve Bank Of India:

Rule currency notes greater than one rupee.

As a Bank of Government, state Government, commercial and co-

operative banks.

Regulation Monetary

Regulations on exchange value of rupee.

As a delegation of India in IMF (International monetary Federation)

State Bank of India:

In 1955, the imperial bank of India was nationalized and renamed as

State Bank of India. Today it is largest bank of India. As a commercial

bank and views pointing to branches, it is world’s largest bank with 10,836

Branches.

Subsidiary Bank of SBI:

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State Bank of Bikaner and Jaipur

State Bank of Hyderabad

State Bank of Mysore

State Bank of Indore

State Bank of Pateyala

State Bank Of Saurashtra

State Bank of Travancore

Nationalized Banks:

Following 14 commercial banks were nationalized on the 19th July, 1969.

Bank of India

Union Bank of India

Bank of Baroda

Bank of Maharashtra

Punjab National Bank

Indian Overseas Bank

Indian Bank

Central Bank Of India

Canara Bank

Syndicate Bank

United Commercial Bank

Alhabad Bank

United Bank of India

Dena Bank

Other six banks were nationalized on the 10th April, 1980.

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State Bank of Bikaner and Jaipur

State Bank of Hyderabad

State Bank of Mysore

State Bank of Indore

State Bank of Pateyala

State Bank Of Saurashtra

State Bank of Travancore

In October 1993, the New Bank of Indian and Punjab National Bank

were merged.

KIND OF BANK:

It is very difficult to categorized banks applicable to any country in

the world. Banks are shaped according to the common economic structure

of the country concerned.

The kings of bank are as under:

Commercial Banks

Co-operative banks

Central Banks

Exchange Banks

Investment of Industrial Banks

Saving Bank

Rural Bank

Land Development Bank

(1) Commercial Banks:

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Commercial banks accept money from the public and arrange for

their productivity use. They also carry out lending of money to meet the

needs of traders. The accepted deposits are always repayable on demand or

on short notice.

(2) Co-Operative Bank:

Co-Operative Bank meets the short term financial needs of farmer.

Agriculturists, petty farmers and artisans who organize themselves on co-

operative principles and form the co-operative societies and banks co-

operative funds are collected through various means.

(3) Central Bank:

A central bank is a special institution which regulates the entire

banking structure of the country. It strives to maintain stability of the

country. The bank is also called as apex bank of the country. Since it

functions in the best interests of the country, making profit is unknown to

it.

(4) Exchange Bank:

There is a vast difference in financing of foreign trade and financing

of internal trade. Generally, a dealer in international trade requires foreign

currencies to meet his obligations. It is here that exchange bank play the

role of financing the dealer for setting transactions involved in foreign

trade.

(5) Investment of Industrial Banks:

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Investment bank provides long term credit to industries. They raise

their funds by way of share capital, debenture, and long term deposits from

the public.

(6) Saving Bank:

Saving banks are specialized institutions which encourage the

general public to save something from their earnings. Their main aim is to

prompt and collect saving of the public.

(7) Rural Bank:

The Rural banks are new banking institutions which have been

added to the Indian banking scene October, 1975. Up to the end of June,

1987, 196 rural banks with a network of branches have been opened in the

States of the Indian Union. These banks have been established by the

Government of India in terms of the provisions of the Rural Banks Act,

1976.

(8) Land Development Bank:

The Land Development Banks meet the requirement of the farmers

for development purposes viz., provision of equipment like pump-sets,

tractors and machinery and land improvement in the form of leveling,

bounding, reclamation of land, fencing, sinking of new wells and repairs to

old wells. Loans are granted on the security of mortgage of immovable

property of the farmers.

Thus all above points shows the various types of banks which are

running in India.

Function of the Bank

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Bank Function

Ancillary Function Principle Function

Discounting of Bills Accounting And Cheques Deposits

Collection of Bills Granting of Cheques Advances

Safe Deposit Vaults

Remittance Letter of Credit

Issue of

Safe Custody Guarantees

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HISTORY OF THE CENTRAL BANK OF INDIA

Established in 1911, Central Bank of India was the first Indian

commercial bank which was wholly owned and managed by Indians. The

establishment of the Bank was the ultimate realisation of the dream of Sir

Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha Mehta was

the first Chairman of a truly 'Swadeshi Bank'. In fact, such was the extent

of pride felt by Sir Sorabji Pochkhanawala that he proclaimed Central

Bank as the 'property of the nation and the country's asset'. He also added

that 'Central Bank lives on people's faith and regards itself as the people's

own bank'.

During the past 91 years of history the Bank has weathered many

storms and faced many challenges. The Bank could successfully transform

every threat into business opportunity and excelled over its peers in the

Banking industry.

A number of innovative and unique banking activities have been

launched by Central Bank of India and a brief mention of some of its

pioneering services are as under:

1921: Introduction to the Home Savings Safe Deposit Scheme to

build saving/thrift habits in all sections of the society.

1924: An Exclusive Ladies Department to cater to the Bank's

women clientele.

1926: Safe Deposit Locker facility and Rupee Travelers'

Cheques.

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1929: Setting up of the Executor and Trustee Department.

1932: Deposit Insurance Benefit Scheme.

1962: Recurring Deposit Scheme.

Subsequently, even after the nationalization of the Bank in the year

1969, Central Bank continued to introduce a number of innovative banking

services as under:

1976: The Merchant Banking Cell was established.

1980: Central card, the credit card of the Bank was introduced.

1986: 'Plantinum Jubilee Money Back Deposit Scheme' was

launched.

1989: The housing subsidiary Cent Bank Home Finance Ltd. was

started with its headquarters at Bhopal in Madhya Pradesh.

1994: Quick Cheque Collection Service (QCC) & Express

Service was set up to enable speedy collection of

outstation cheques.

Further in line with the guidelines from Reserve Bank of India as

also the Government of India, Central Bank has been playing an

increasingly active role in promoting the key thrust areas of agriculture,

small scale industries as also medium and large industries. The Bank also

introduced a number of Self Employment Schemes to promote

employment among the educated youth.

Among the Public Sector Banks, Central Bank of India can be truly

described as an All India Bank, due to distribution of its large network in

27 out of 28 States as also in 4 out of 7 Union Territories in India. Central

Bank of India holds a very prominent place among the Public Sector Banks

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on account of its network of 3117 branches and 278 extension counters at

various centers throughout the length and breadth of the country

In view of its large network of branches as also number of savings and

other innovative services offered, the total customer base of the Bank at

over 25 million account holders is one of the largest in the banking

industry.

Customers' confidence in Central Bank of India's wide ranging

services can very well be judged from the list of major corporate clients

such as ICICI, IDBI, UTI, LIC, HDFC as also almost all major corporate

houses in the country.

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History of the CBI at Laldarwaja

The Central Bank Of India at Laldarwaja branch was established on

dated 17th May 1964. Above 40 years ago, at LalDarwaja area, there was

no any bank and lived their middle level people. So they needed a bank

because people went very far for his money to deposit in the bank. The

Establishment of this bank is inaugurated by Shri Dahyabhai Karsanji

Kosmada. This bank was made fully computerized on dated 25th January

1999. Then CBI is well settled.

Name of the Bank:-

The Central Bank of India(B.O.)

Laldarwaja,

Surat-395003.(Guj.)

Tel :- 0261- 2423145

0261- 2428854

Head office & Registered Office:-

Chandar Mukhi,

Nariman Point,

Mumbai-400021

Regional Office: -

Athugar Street,

Nanpura,

Surat.

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Organizational Structure:

Director

Chairman (M.D.)

General Manager

Branch Manager

Assistant Manager

Officer

Clerk

Peon

Name of Directors:-

Shri Alokkumar

Shri R. Gandhi

Shri Yashwant P. Mone

Shri Surendra Singh Bhandari

Shri V.M. Bhutani

Shri Nayankishor Mohnty

Shri Yogendrasingh

Shri Deepak Singh

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Shri Sunil N. Mehta

BRANCHES OF CENTRAL BANK OF INDIA:-

City NameComputerized

Branches

Non-Computerized

Branches

Total No of

Branches

Ahmedabad 42 16 58

Anand 24 13 37

Baroda 19 14 33

Jamnagar 28 6 34

Rajkot 17 10 27

Surat 23 9 32

Total: 153 68 221

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DEPARTMENTS

Bankers carry out the function of lending funds from the available

financial resources of the bank. Financial resources refer to deposits made

by customers or account holders of the bank. To attract deposits, banks

have been offering various types of facilities and privilege to the public in

different walks of life.

(1) SAVINGS BANK ACCOUNTS: -

A savings bank account is meant for the people of the lower and

middle classes who wish to save a part of their current incomes to meet

their future needs and also intend to earn an income from their savings.

The banks, therefore, impose certain restriction on the savings bank

account and also offer a reasonable rate of interest. The need of keeping

cash reserves against such deposits Is comparatively larger vis-à-vis the

fixed deposit but smaller as against the current deposits, because of the

restrictions on the number of withdrawals. With the extension of banking

facilities during the last decade and the growth habit amongst the people,

the savings of all scheduled commercial banks have gone up substantially.

It can be opened with a very nominal amount. With regard to withdrawing

money from the account, there are some restrictions. In other words, banks

do not allow frequent withdrawals and place a limit to the amount that can

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be withdrawn on a single day. Two withdrawals per week and a maximum

of 150 per year are allowed. The amount allowed to be withdrawn in a

single day is 10% of the credit balance or Rs. 1000/- which ever is greater.

The saving bank account is basically of two types: An SB A/C with cheque

facility where a minimum balance of Rs. 250 is to be maintained; an SB

A/C with non cheque facility where the minimum balance may be Rs.20.

Normally interest given on the credit balance was 5% p.a. but

effective from 1st November 1994, the rate of interest on an SB A/C in a

CBI is 4% p.a.

How to open saving account

To open saving account, only two photograph, proof of resident by

driving licenses or school-leaving certificate or rationing card and

signature of account holder who having an account in the bank.

(2) CURRENT ACCOUNT: -

A current account is a running and active account which may be

operated upon any number of time during a working day. There is no

restriction on the number and the amount of withdrawals from a current

account. As the banker is under an obligation to repay these deposits on

demand, they are called demand liabilities of a banker. To meet such

liability the banker keeps sufficient cash reserves against such deposits vis-

à-vis the savings and the fixed deposits.

Current accounts suit the requirements of big businessmen, joint

stock companies, institutions, public authorities and public corporation,

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etc., whose banking transactions happen to be numerous on every working

day. A customer who opens a current account may deposit money in the

form of cash, cheque, draft and postal orders etc. The banker supplies to

the customer upon opening an account pass book, a pay in slip book and a

cheque book.

Special characteristics of the current accounts are as follows:

1. A current account is meant for the convenience of his customers,

who are relieved of the task of handling cash themselves and to take

the risk inherent therein. Thus the primary object of a current

account differs from the object of other deposit accounts which are

meant to solicit the savings of the people.

2. As the banker undertakes to make payment and to collect the bills,

drafts, cheque, etc., any number of times daily, the operating cost,

i.e. the cost of bank personal, involved in current account is

considerable.

3. A current account carries privileges which are not given to a savings

bank account-holder, e.g. Third party cheque and cheques with

endorsement may be deposited in the current account for collection

and credit.

4. The State Bank makes no charge for keeping an account provided

the balance maintained is sufficient to compensate the bank for the

work involved.

How to open current account

The requirement for opening a current account are two photographs

of the person and the account is opened for a company or firm than the

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photographs of the directors or proprietors, the signature and account

number of a person/firm having current account in the bank, licenses of the

firm/company.

(3) CASH CREDIT ACCOUNT: -

Cash credit is the main method of lending by banks in India and

account for about to percent of the total bank credit. Under the system, the

bankers specify the limit called the cash credit limit, for each customer up

to which customer is permitted to borrow against the security of tangible

assets or guarantee. The customer withdraws from his cash credit account

as & when he needs the fund & deposits & any amount of money which he

finds surplus with him on any day. The Cash Credit account is thus an

active & running account to which deposits & withdrawals may be

affected fortunately. The customer is required to provide tangible assets as

a security to cover the amount borrowed from the banker. The borrower is

charged interest on the actual amount utilized by him for the period of

actual utilization only.

Other features of Cash Credit are as Follows: -

The banker fixed the cash credit limit after taking in to account

several features of the working of the borrowing concern such as

production, sales, inventory level, past utilization of such limit etc.

the banks are thus include to relate the limit to the security offered

by their customer.

The advances sanctioned under the cash credit agreement are

technically repayable on demand & there no specific date of

repayment. But in practice they “role over” a period of time cash

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accruals arising from the sales are adjust in a cash credit accounts

from time to time, but is found that on a ledger numbers of accounts

no credit balance emerge for debit balance fully wiped out over a

period of year as the withdrawal are in a access of receipts.

Under the cash credit agreement, bankers keep a cheque at cash

balance so as to meet the demand of his customers as and when it

arises. But the customers is charged interest only on the actual

amount utilized by him the banker to naturalized the lost of interest

on the idle fund kept by the banker within the credit limit

sanctioned. A commitment charged on the unutilized may be

charged by the banks.

(4) FIXED DEPOSIT ACCOUNTS: -

In this category are included the deposits with the bank for a

fixed period which is specified at the time making the deposit. Such

deposits are, therefore, called Fixed Deposit or Term Deposits. Fixed

Deposits are repayable on the expiry of the specified period, chosen by the

depositor to suit his purpose and to enable intends to utilize his money for

any purpose after a few years, he may deposit it for 3, 5, or 6 years,

whereas if his purpose is to meet some urgent need in the near future, the

fixed deposit may be made for 3, 6, or 9 months. As date of repayment of a

fixed deposit is determined in advance, the banker need not keep more

cash reserves against it and can utilize such amount more profitable. The

banker, therefore, offers higher rate of interest on such deposit because the

depositor parts with liquidity for a define period.

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Rates of Interest on Fixed Deposits

The rates of interest and other terms and conditions on which the

banks accept fixed deposits are regulated by the Reserve Bank of India in

exercise of the powers conferred upon it by Section 21 and 35A of the

Banking Regulation Act, 1949. At present fixed deposits are classified into

four categories with varying periods of maturity starting from 15 days.*

The rates of interest which are applicable to fixed deposits effective 1st

May 2000 are given below:

Deposits

(Days to Days)Citizen Senior Citizen

15 days to 29 days 4.50 % 5.00 %

30 days to 45 days 4.75 % 5.25 %

46 days to 90 days 5.00 % 5.50 %

91 days to 179 days 5.25 % 5.75 %

180 days to 1 Years 5.50 % 6.00 %

1 Years to 2 Years 5.75 % 6.25 %

2 Years to 3 Years 6.00 % 6.50 %

More than 3 Years 5.75 % 6.25 %

Fixed deposit interest rate is changeable.

(5) RECURRING DEPOSIT: -

A variant of the savings bank account is the recurring deposit

account introduced by banks in recent years. This account is intended to

inculcate the habit of saving on a regular basis as an inducement is offered

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in the form of comparatively higher rate of interest. A depositor opening a

recurring deposit account is required to deposit as amount chosen by him,

generally a multiple of Rs. 5 or 10, in his account every month for a period

selected by him. The period of recurring deposit varies from bank to bank.

Banks open such accounts for periods ranging from 1 to 10 years.

The rate of interest on the recurring deposit account stands favorably

as compared to the rate of interest on the saving bank account because the

former partly resembles the fixed deposit amount. According to the

directive by the Reserve Bank, banks are required to ensure that the rates

of interest offered by them on recurring deposits are generally in accord

with the rates prescribed for various term deposits. The rate of interest is

almost equal to that of the fixed deposit account.

The account is opened when the prescribed form is filled in and the

initial deposit is received by the banker. Then a pass book is provided

where entries are made as and when the account holder deposits money.

To make proper repayment to the account holder, the pass book has to be

returned after the lapse of the stipulated period.

(6) CHEQUE BOOKS ISSUE AND PASSBOOK: -

This is more important department of the bank. In this department

new pass book and cheque books are issued. The new account department

details of new customers and according to that new cheque books and pass

book are issued.

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Customers, who require a new cheque books, have to apply a day

before a counter fill in the old cheque book for each account holder. It is

necessary to present at least 5 cheques in the bank. Then they are allowed

to issue a new cheque book. Daily15 to 20 new cheques books are issued.

The MICR (Magnetic Ink Character Recognition) cheques used by the

bank.

(7) TRANSFER, IBC AND OBC: -

The next department is at transfer. There is only one employee in

this department. In this department the cheque of the same bank is transfer

from one account to other account of customer. At the end of the day

transfer scroll supplementary checked by the clerk.

If any customer present cheques of out side station branches banks

than this outside bill collection cheques send or respective branches by this

department, similarly Inter Bill Collection cheques also received by this

department. At the end of the day OBC/IBC supplementary also checked

by the clerk.

(8) CLEARING: -

Most important and busy department of the bank is clearing. This

department has 2 to 3 persons are continuously working in this department.

The working hours Monday to Friday in between 11:00 AM to 4:00 PM

and Saturday 11:00 AM and 2:00 PM clearing send by the bank to the

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clearing hours is known as inward clearing. The inward clearing par day is

nearly about Rs. 1 to 2 crore. Clearing houses of all banks in surat is

situated at Udhana Darwaja

From the clearing houses outward clearing received which is nearly

about 40 to 50 lacks Rupees. The entry for the outward clearing is affected

between 11:00 AM to 2:30 PM which is benefit of the customer as they get

a chance to deposit cash if there is no balance in their account.

The local clearing will be credited in customer account after three

day. In case of outside clearing it requires 10 to 15 days.

(9) TOKEN: -

The next department is of the token departments. It is small

department with only one employee. The working hour of this department

is from 11:00 AM to 3:00 PM. Token is issued after various strict

verification of cheque of like self or name of to pay, amount in both figure

as well as in word, signature, date and endorsement behind the cheques.

This department is small but full of responsibility.

(10) CASHIER: -

There are two types of cashier one work on receipt part and another

work on payment part. Here the bank’s teller payment is made up to Rs.

7000 in saving account. The work is both receipt and payment part done by

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computer, note counting machine, teaching machine and to key display

machine. All token holders are taken payment only from the cashier.

LOANS & ADVANCES

(1) CENT BUY

(2) CENT VIDHYARTHI

(3) HOUSING LOAN

(4) CENT VYAPARI

(5) COMPUTER LOAN

(6) LOAN OF PENSIONERS DRAWING PENSION AT OUR

BANK’S BRANCHES

(7) CENT LIQUED

(8) ADVANCE AGAINST (NSE)/ (IVP)/(KVP)

(9) CENTRAL KISAN CREDIT CARD (CKCC)

(10) ADVANCE AGAINST LIFE INSURANCE POLICY

(11) CENT TRADE

(12) CENT MORTGAGE

(13) CENT RENTALS

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(14) PERSONAL LOAN- TO EMPLOYEE O CORPOTATED

CLINTS

(15) PERSONAL LOAN SCHEME TO EMPLOYEE OTHER THAN

CORPORATE EMPLOYEES

(1) CENT BUY: -

Purpose

Finance to the consumer for purchase of consumer durable two

wheelers and four wheelers. This advance is allowed at all branches.

Nature of Facility: - Term Loan

Eligibility:-

Permanently employed persons (Govt./Private Sector).

Others have regular and known sources of income.

For four wheelers, applicant should be Income-tax assesses.

Margin:- 15% for advance against consumer durable and two wheelers.

20% for wheelers.

Rate of Interest:- PLR + 2%

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(2) CENT VIDHYARTHI: -

Objective:-

The scheme aims at providing financial assistance on reasonable

terms –

To the poor and needy to undertake basic education.

To the meritorious student to pursue higher education.

To employed persons for improvement in their educational

qualifications and/or to receive training in modern technology in

India/abroad provided NOC from present employer is obtained.

Course Eligibility:-

(a) Studies in India

School education including plus 2 stages

Graduation courses – B.A., B.Com, B.Sc. etc

Post graduation courses –Master& Ph.D.

Professional courses – Engineering, Medical, Agriculture,

Veterinary, Law, Dental, Management, Computer etc

Computer certificate courses of reputed institutions accredited to

Department of Electronics or Initiations affiliated to University.

Courses like ICWA, CA, CFA, etc.

Courses conducted by IIM, IISc, XLRI, and NIFT etc.

Courses offered in India by reputed foreign Universities.

Evening courses of approved institutions.

Other courses leading to Diploma/Degree etc. conducted by

Colleges/universities approved by UGC/Govt./AICTE/ICMR etc.

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Courses offered by National Institutes and other reputed private

institutions. Any other institutions courses depending on future

prospectus/recognition by user institutions deemed proper by the

bank.

(b) Studies in Abroad

Graduation: For jobs oriented professional/technical courses

offered by reputed Universities.

Post Graduation: MBA, MCA, MS. etc.

Courses conducted by Charted Institute of Management

Accountants (CIMA)- London, Charted Public Accountant(CPA)

–USA etc.

Student Eligibility:-

Should be an Indian National

Secured admission to Professional/technical courses through

Entrance Test/Selection Process

Secured admission to Foreign University/Institutions

Margin:-

Up to Rs. 4 lacs – No Margin

Above Rs. 4 lacs – In India 5%

Above Rs. 4 lacs – In abroad 15%

Rate of Interest:-

(1) Up to Rs. 4 lacs –PLR

(2) Above Rs. 4 lacs upto Rs. 8 lacs –PLR + 0.5%

(3) Above Rs. 8 lacs upto Rs. 15 lacs –PLR +1%

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(3) HOUSING LOAN: -

Purpose

For construction / acquiring of new house /flat

For extension / alteration existing flat or house

For purpose of existing housing

Eligibility

Individual salaried employees. If the applicant so desires, mother,

father, son, wife may be taken as co-applicant.

Self employed (Must have filed Income Tax returns for last two

years).

Partner or Director in a firm/company respectively

Age at loan maturity should be less than retirement age for

Salaried individual and below 65 years for self employed

Margin

Up to Rs. 2 lacs - 15%

Over Rs. 2 lacs-20%

Rate of Interest

Period Fixed** Floating**

Upto 5 years. 9.25% PLR(-)2.50%

Above 5 years to less than 10

years

9.75% PLR(-)2.00%

10 years & above 10.25% PLR(-)1.50%

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(4) CENT VYAPARI: -

Objective: - To provide finance to small and medium traders.

Nature of Facility: - Cash Credit

Eligibility: - Small and medium traders including retailers and

distributors.

Margin: - Min. 25% on Stocks.

Rate of Interest: -

(1) Up to Rs. 2 lacs – PLR

(2) Over Rs. 2 lacs and up to Rs. 5 lacs – PLR + 4 %

(5) COMPUTER LOAN: -

Purpose

In the present era of IT, a large number of students are enrolling

themselves in computer related. Courses like BCA/MCA/MIT ets. Besides

the other students are also under going various courses conducted, by

Institutions like Aptech, NIIT and Tulec ets. and many of them are

interested in purchasing their own personal computers for practice at home

or vocation. In other to help such students the scheme is introduced.

Margin: - 25 %

Rate of Interest: - PLR + 2%

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(6) LOAN OF PENSIONERS DRAWING PENSION AT OUR

BANK’S BRANCHES: -

Purpose

Pensioners are respectable senior citizens of the society and have to

meet several family obligations at the fag end of their life with limited

means of pension amount. Allowing personal loan to such targeted

customer group will help them to mitigate hardship in raising reasonable

funds and will get a sense of satisfaction to fulfill family obligation to

some extent.

Eligibility

Personal loan to pensioners drawing pension at our bank’s branches

Nature of Facility: - Demand Loan

Rate of Interest: -

(1) PLR + 3% (for general pensioners).

(2) PLR + 2% (for ex-staff of Central Bank of India)

(7) CENT LIQUED: -

Purpose

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Advance against approved shares/debentures and units of Mutual

fund both in physical and dematerialized form.

Nature of Facility: - Overdraft and demand loan.

Basis for calculation of eligible loan amount

Average market price for the last 6 months (or) the current market

price whichever is lower.

Maximum Loan Amount:-

Against security of (1) shares in physical form Rs. 10 lacks

(2) shares in demand from Rs. 20 lacks

Margin: - For Advances against

(1) shares in physical form – 50%

(2) shares in demit form – 40 %

(3) Preference shares, Bonds, Debentures – 30 %

Rate of Interest: - For Advances against

(1) shares in physical form – PLR + 4%

(2) shares in Demit form – PLR + 3.75%

(8) ADVANCE AGAINST NSE/ IVP/KVP: -

NSE: - NATIONAL SAVINGS CERTIFICATE

IVP: - INDIRA VIKAS PATRA

KVP: - KISAN VIKAS PATRA

33

Purpose of Loan: - Loans/overdraft to.

Individual to meet their personal requirements

Firms for meeting working capital requirement

Nature of Facility: - Demand Loans/overdraft

Eligibility: - Individual and all business organization.

Basis for calculation of eligible advance: - Face value of certificate.

Margin: - NSC – 40%

IVP/KVP – 30%

Rate of Inrterest: - PLR + 2%(RM / CM can sanction) within band of

PLR + 0.50% to PLR +2%

(9) CENTRAL KISAN CREDIT CARD (CKCC): -

Purpose

Loan for farmers on the basis of their holdings for purchasing

agriculture inputs including cash withdrawals for their production needs.

Eligibility

CKCC will be provided to any cater to his short term credit

requirement.

Farmers having good track record for past 2 years with our Bank

as a borrower or depositor and not being defaulter to any credit

institution would be considered. On selective basis, facility can

34

be extended to new account holders after examination of their

land records as well as satisfactory report from other banks.

CKCC will be issued to farmers in the form of card-cum-

passbook incorporating the name, address, particulars of land

holding, borrowing limit, validity period which will serve both

as an identity card as well as ongoing basis. The card, among

others would provide for a passport size photograph of the

holder. The borrower wherever he operators the a/c.

Security/Margin: - In conformity with the Agriculture Loan.

Rate of Interest: - Same rate of interest as are applicable to crop loans

and activities allied to Agriculture.

(10) ADVANCE AGAINST LIFE INSURANCE POLICY: -

Purpose: - All individual and business needs

Nature of Facility: - By way of Term loan/demand loan/overdraft

Eligible Borrower: - Individual/partnership/other Business concerns.

Basis for calculation of eligible loan amount: - Surrender value

certificate from LIC.

Margin (Minimum):- 10% of surrender value


35

(11) CENT TRADE: -

Purpose: - Overdraft limit for business requirements.

Eligibility: - The scheme is intended for all types of traders including the

Retailers/Distributors/Commission Agent/ Arhatiyas.

Assessment: - The limit is to be assessed as per the Turnover method,

i.e. 20% projected annual sales. The limit shall be for a

period of 12 months and renewed/reviewed annually.

Rate of Interest:-

(1) Up to 2.00 lacks – PLR

(2)Over 2.00 lacks – PLR + 2%

(12) CENT MORTGAGE: -

For meeting personal needs to individuals and to meet the business

requirements of Traders, Professionals and Self-employed persons,

Business enterprises, etc. against the security of mortgage of property, our

bank has introduced a scheme for loan against mortgage of property under

the scheme name “cent Mortgage”. Such loans are secured, remunerative,

and popular amongst the needy persons.

Eligibility

Loan against mortgage of immovable property located in Metro/

Urban/ Semi-Urban.

36

Nature of Facility: - Term Loan.


(13) CENT RENTALS: -

The demand for build-up space on lease/ rental basis in commercial

complexes is growing fast and it offers a good scope for financing the

lenders against rent receivables who wish to lease/ let out their properties.

In view of above, our bank has introduced a scheme for “financing

against future receivables of rentals” on the following terms :-

Purpose

For meeting business/ personal needs or any lawful business activity

including expansion of percent business etc. but not for speculative

purpose

Nature of Facility: -

Term loan with maximum of 75% of the future lease rentals

receivables which should not exceed the amount of rent receivables within

un expired period deed/ lease deed or 3 years whichever is less.

Rate of Interest: - PLR + 2 %

37

(14) PERSONAL LOAN- TO EMPLOYEE of CORPOTATED

CLINTS: -

Purpose: - To meet any personal/ domestic expenses of the borrower.

Eligibility: -Permanent employees of large Corporate Clients/ other very

reputed Companies not have credit limits with us.


DEPOSIT SCHEME

1. Money Multiplier Deposit Certificate (MMD)

2. Khazana Deposit Scheme

3. Monthly Interest Deposit Receipt (MIDR)

4. Quarterly Interest Deposit Receipt (QIDR)

5. Central’s Senior Citizen Deposit Scheme

6. Central’s Flexi Yield Deposit scheme

38

(1) Money Multiplier Deposit Certificate: -

The interest accrued gets added back to the principle giving you an

effective interest rate that is higher than the contracted interest rate.

This is an ideal scheme to increase your deposit exponentially.

Amount of Deposit : You can deposit a minimum amount of Rs.100/- and

multiples of Rs.100/-.

Period of Deposit: You can open an account for a minimum period of 6

months and up to a maximum of 120 months.

Rate of Interest: The rate of interest shall be the appropriate rate

prevailing on the date of the deposit for the period so

selected.

Deposit Certificate : After opening of the the account in the ledger, you

will issued a printed certificate(MMDC) with

full particulars filled in such as sr. no., your

name, amount of deposit, period of deposit, date

of deposit, due date of deposit, interest rate of

deposit and matuarity value etc.

Loan/Advance against Deposit: Loan / Advance facility available under

the scheme as per prevailing rules.

2. Khazana Deposit

Scheme :-

39

Khazaana deposit scheme offeres you the double benefits of easy

liquidity and high returns. It is also a flexible scheme that allows you to

withdraw a part of the deposit amount as and when required.

Amount of Deposit: You can deposit a minimum amount of Rs.5000/-

and multiples of Rs. 1000/-. At the time of

acceptance of the deposit, the entire deposit will

be placed in ‘units’ for payment at your option.

Period of Deposit: You can open an account for a minimum period of 30

days and up to a maximum of 120 months.

Rate of Interest: The rate of interest shall be the appropriate rate ruling

on the date of the deposit for the period so selected.

Pass Book: You will be provided with a ‘Pass Book’ under the scheme.

If the ‘Pass Book’ is spoiled/ mutilated or lost, a duplicate

‘Pass Book’ will be issued after observing other formalities

and recovering the usual ‘service charges’.

Loan/Advance against Deposit: Loan / Advance facility available under


3. Monthly Interest Deposit Receipt(MIDR) :-

The MIDR scheme provides you with monthly interest

earnings, without affecting the principal amount.


and in multiple of Rs.1000/-.

40

Period of Deposit: You can open an account for periods ranging from 12

months to 120 months.


prevailing on the date of the deposit for period so

selected.

Certificate/ Receipt : After completion of formalities you will be issued a

printed receipt (MIDR) with all particulars filled

in as sr. no., your name, amount of deposit, period

of deposit, date of deposit, due date of

deposit ,interest rate and interest payable every

month etc.

Loan/Advance against Deposit: Loan/advance facility is available under


4. Quarterly Interest Deposit

Receipt(QIDR) :-

QIDR provides you quarterly interest without affecting the principle

amount.


and in multiple of Rs.1000/-.

Period of deposit: You can open an account for periods ranging from 12

months to 120 months.


prevailing on the date of opening of the account for

the period so selected.

41

Certificate/ Receipt : After completion of formalities you will be issued a

printed receipt(QIDR) with all particulars

filled in as sr. no., your name, amount of

deposit, period of deposit, due date of deposit,

due date, interest rate and interest payable

every quarter etc.


the scheme as per prevailing rule.

5. Central’s Senior Citizen Deposit

Scheme :-

The unique feature of the scheme is an incentive to senior citizens

by way of additional interest over and above normal rate of interest on any

of our existing term deposit schemes.

If you have completed the age of 60 years, you will be treated as a

senior citizen for getting the benefit under this scheme.

Amount of Deposit: The minimum amount of deposits accepted will be

as per the criteria laid down for the deposit

scheme which you opt for.

Period of Deposit: Your deposits may be accepted for any period

between 15 days (minimum period as applicable

to various deposit schemes) and 120 months.

Incentive on Rate of Interest: An incentive of additional interest of

0.50% over and above the existing normal rates of interest would be

offered to you on any time deposit scheme.

42

Certificate/Pass Book: Certificate or ‘Pass Book’ will be issued to you

according to the deposit scheme such as ‘Pass

Book’ will be issued for Khazana and

Certificate will be issued for MMDC, MIDR

and QIDR.


the scheme as per prevailing rule.

Add-on facilities to Senior Citizens in Savings Bank Account: the

following additional incentives are available to you if you are

maintaining an average half-yearly balance of Rs.5000/- in your

Savings Bank Account.

a) Two demand drafts per month with

upper limit of Rs.1.00 lac per year will be issued free of service

charge by debiting your account.

b) Waiver of fee on issue of Central Card for one year.

c) Free ATM cards will be issued.

d) Free standing instructions.

6. Central’s Flexi Yield Deposit

scheme :-

43

Under this scheme depositors can avail floating rate of

interest which is higher than the interest rate on normal Term Deposits.

Amount of Deposit: Single deposit of Rs.1 lac and above.

Period of Deposit: One year and above and up to a maximum of 10

years.

Rate of Interest: Rate of interest shall be the appropriate rate prevailing

on the date of deposit.

Loans/Advances against Deposit: Loans and advances against deposit

are available in the scheme as per

prevailing rules.

CENTRAL BANK OF INDIALAL-DARWAJA, SURAT-395003

BALANCE SHEET AS AT 31/3/2003

44

PARTICULAR AMOUNT TOTALAMOUNT

(A) CAPITAL AND LIABILITIES :-

(1) Deposit Fixed Deposit Long Term 51,62,136.05 Fixed Deposit Short Term 41,05,499.00 Monthly Interest Deposit 53,94,194.00 Money Multiplier Deposit 14,61,12,994.90 Recurring Deposit 15,29,045.40 Quarterly Interest Deposit 1,67,17,211.00 Central 60 plus 12,581.60 Khazana

Deposit(Computerized) 4,74,086.00

NRNRD – MMD 70,474.00 17,95,78,221.95

(2) Foreign Currency Non-Residence 41,49,384.92

(3) Accounts Saving bank A/c 14,27,61,723.87 Current A/c 8,74,80,071.66 Nominal A/c 25,02,747.37 23,27,44,542.90

(6) Central Office D.D. Account 17,33,00,830.14

(7) Credit Balances of Advance Cash Credit 10,41,869.42 Over Draft 93,65,352.61 1,04,07,222.03

(8) Contingent Liabilities Gift Cheque Issued 46,005.00 C.D.S. (I.T.P.) collected 1974 1,35,163.00 Travellers Cheque Issyable 11,300.00


Outward Cheque Collection 84,755.52 Outwards Bills For Collection 59,300.00 Sundry Inward Bills for 8,71,882.00

45

Collection Liability of Accepted on A/c

of Customer 16,17,470.00

Foreign Outward Bills Collection 9,600.00

Branches Inward Bills For Collection 15,92,165.00

Quick Cheque Collection 5,44,534.00 49,72,174.52

Profit & Loss 1,00,29,540.83

TOTAL OF BALANCESHEET 61,51,81,917.29

(B) ASSETS:(1) Main Branch Adjustment

A/c 30,64,43,509.23(2) Central Office 17,89,02,594.78(3) Cash On Hand 18,53,595.00

(4) Loan & Advances Vehicle Loan 2,48,671.00 Housing Loan 28,30,898.73 S.S.I. Loans 91,06,179.00 Interest A/c For Vehicle Loan 1,36,167.40 Personal Consumer Loan 1,61,013.25 Other Priority Sector(Term

Loan) 32,67,896.00

Non-Other Priority Sector(Term Loan) 1,22,54,514.00

Interest A/c For Housing Loan 14,03,187.67


P.F. Loan 6,36,125.00 Demand Loan Others 25,48,019.00 Interest A/c For P.F.Loan 1,44,906.45 Personal Loan 7,14,247.05 Earthquake Relief Loan 2,66,928.00

46

Earthquake Relief Loan- Interest A/c 1,05,429.60

Cent Vidhyarthi Loan 7,12,271.00 Cent Vidhyarthi Loan Interest

A/c 1,21,474.00

Personal Loan Others 1,47,166.35 Cash CreditAdd: Credit balance

5,64,92,048.3810,41,869.42

Over DraftAdd: Credit Balance

1,75,66,600.8893,65,352.61

Inland Bills Purchased 3,000.00 Outstation Cheque Purchased 4,891.00 Local Bill Disclosed 4,77,927.88 11,97,56,783.67

(5) Current Asset Furniture & Fittings 31,52,411.59 Stationary 91,888.50 Stamp & Stamped Forms(Inland) 8,960.00 32,53,260.09

(6) Contingent Assets Gift Cheques On Hand 46,005.00 C.D.S. (I.P.T.) Remitted 1974 1,35,163.00 Travellers Cheque On Hand 11,300.00 Outward Cheque Receivable 79,020.52 Acceptance On A/c Of Customers 16,17,470.00

Sundry Inward Bills Receivable 8,71,882.00

Quick Collection Receivable 5,44,534.00


Outward Bills Receivable 65,035.00 Foreign Outward Bill

Receivable 9,600.00

Branches Inward Bills For Realization 15,92,165.00 49,72,174.52

TOTAL OF BALANCESHEET 61,51,81,917.29

47

CENTRAL BANK OF INDIALAL-DARWAJA, SURAT-395003

PROFIT & LOSS A/C FOR THE HALF YEAR ENDED 31-3-2003


DEBIT SIDE

48

(A) INTEREST ON DEPOSIT Interest on F.D. 12,892.00 Interest on M.I.D.R. 90,699.00 Interest on M.M.D. 96,997.00 Interest on R.D.S. 986.00 Interest on H.H.S. 23,086.00Interest on F.D.S. 81,947.00 Interest on Central’s 60 plus 3.27 Interest on Khazana 7,239.50 Interest on Over Due Deposit 43,844.00

Sub Total of A ----- 3,57,694.27

(B) STAFF EXPENSES Basic Pay 5,76,105.14 Special Allowance 25,000.05 Dearness Allowance 2,38,007.35 City Compensatory Allowance 16,344.79 House Rent Allowance 46,645.77 Professional Qualification

Allowance4,539.430

Cycle Allowance 206.61 Washing Allowance 591.95 Fixed Personal Allowance 14,349.05 Conveyance Allowance To

Awards Staff 3,342.20 Cont. To Provident Fund 18,790.00 Canteen Subsidy 1,520.00 Encashment Of Leave Against

L.F.C. 25,993.94 Closing Allowance 1,500.00


Medical Aid 9,075.00 L.T.C. / L.F.C. 1,608.00 Cost Of Cotton & Winter

Uniform 6,000.00 Hospitalization Expenses 6,142.74

Sub Total of B ----- 9,95,762.02

(C) ADMINISTRATIVE

49

EXPENSES Lighting Expenses 30,410.00 Rent Paid For Other Premises 16,200.00 Rent Paid For Office Premises 31,127.00 Other Taxes (Octroi & Muni.

Taxes.) 1,975.00

Telegram Charges 2,549.00 Telephone Charges 10,594.00 Courier Charges 3,235.00 Repairs & Maintenance 8,675.00 Local Conveyance Charges 3,445.00 T.A. Bill 2,159.00 Table Stationary 4,199.00 Computer Stationary 665.00 Reimbursement Of

Conveyance Exp. To Office 21,060.40

Newspaper & Periodicals/ Books 1,317.00

Repairs Etc. on Rented Premises 1,430.00

Freight/ Labour Charges paid 40.00 Wages Paid To Sweepers &

Casual Workers 450.00 Petty cash 6,500.00 Audit Fees 9,450.00 Xerox 1,624.50 Clearing House Charges 34,856.75

Sub Total of C ----- 191961.65 Net Profit 11,54,788.59GRAND TOTAL 27,00,206.53


CREDIT SIDE

(A) Interest on Advances Interest on Demand Loan 88,747.10 Interest on Term Loan 5,76,470.40 Interest on Cash Credit 11,94,420.00 Interest on O.D.A. & T.O.D. 6,43,251.00

50

Sub Total of A ----- 25,02,888.50

(B)Comm./Bill/DDs/MTs Commission On BP/IBD 1,236.00 Incidental/Services Charges 33,989.43 Processing Charges 5,355.00 Commission On

OCC/OBC/SIBC/BIBC 18,660.00

Commission On Letter/Guarantee 12,259.00

Sub Total of B ----- 71,499.43

(C)Misc. Income Amount Received From Staff

For Occupation Of Fl. 452.00

Penal Interest On SDV Lockers 871.00

Commission On Foreign I.C. 15,971.00 Amount Recovered For Use Of

Furniture 223.60

Interest B.P./ I.B.D. 447.00 Interest On Incedentional

Charges 4899.00

Exchange On DD/ Mt 1,02,394.00 Postages 561.00

Sub Total of C ----- 1,25,818.60 Gross Loss -----GRAND TOTAL 27,00,206.53

PROGRESS REPORT

The Central Bank of India‘s progress report by chart are as under :

Sr. No. Details 31/3/1999 31/3/2000 31/3/2001 31/3/2002 31/3/2003

1 Profit 10124739 8025923 6799931 8093982 10029540

51

2 Advances 46074486 50837341 64207740 56712070 119756783

3 Current A/c 86787115 92163395 99133930 117510742 87480071

4 Saving A/c 105037977 113668546 114078506 12190841 142761723

5 Time Deposit 104634306 119587921 146461287 193889029 183727606

6 Interest Earned 6855822 9585284 12072671 24033070 44987136

7 Total Assets 511598422 776455741 544203813 615461026 615181917

8 No of HSS A/c. 9165 9665 9952 10203 10439

9 No of C/A 920 930 933 927 833

10Time

Deposit Account

3740 3837 3843 3926 4122

PERSONNEL DEPARTMENT

(1) RECORD MAINTENANCE

(2) RECRUITMENT, SELECTION & INDUCTION

(3) TRAINING & MANAGEMENT DEVELOPMENT

52

(4) PROMOTION POLICY

(5) WAGE & SALARY ADMINISTRATION

(6) STAGNATION INCREMENTS

(7) TRANSFER POLICY

(8) TIME KEEPING SYSTEM

(9) ALLOWANCE

1. RECORD

MAINTENANCE: -

The Central Bank of India maintaining a wide range of records. The

records about employment, training, promotion, transfer, wage and salary,

welfare and other policies are maintain by the very senior officer at the

head office under the general managers instruction. Personal data each and

every employee has maintain by the branch officer/ manager with the use

of computer. Which the general manager collects from time to time. It is

helpful to seniority. These records contain the following information:

Name of the Employee

Permanent & local Address

Photograph

Appointment of training

Detail of his/her past

Previous Employment

Qualification

Awards & Promotion

Accident Record

53

Sex & marital status

Disciplinary behavior

Retirement

2. RECRUITMENT, SELECTION &

INDUCTION: -

At Present the Central Bank of India at Lal Darwaja branch

understands “Rationalization” i.e. it selects candidate’s from inside the

organization. There for, there is no need to recruit or select more people

from outside the Organization. But when there I any vacancy in the

Organization, the selection process is as under:

Ask for job to Head office of the central bank.

Answer from Head office.

When inquiry comes from Head for filling the vacancy, If they

require the person, the give answers for filling that vacancy and job

specification.

If there is no applicant for that job in employment exchange, they

give advertisement in the newspaper.

Interview

Selection

Induction

When new recruits join the company, they are not aware of the

company. At the time of joining, they are given in brief information about

54

the Central Bank of India. They are told about Rules & Regulations

relevant to his job. The employee is also introduced to his superior and

peers. Attendance is prepared immediately on reporting by employee along

with the office order.

3. TRAINING & MANAGEMENT DEVELOPMENT:-

The Central Bank of India is a one type of servicing organization. So

it requires training for the new employee or old employee for new post

who are working in the organization. Central Bank of India has its own

branch for providing various type of training at Ahmedabad. It provides

training on various departments under Apprentice Act. It give training for

all different department.

Training & Management Development is taught by the senior

employee of the bank to new employee. He taught him about all data of

how to work it and how to handle it with respectably. He also gives

information about rules and regulation of the bank. The training period is 2

months for all trainees. Within 2 months the trainees learn procedure of the

bank.

4. PROMOTION POLICY: -

The CBI bank gives promotion to their employees by experiences,

good efficiency with his work by Regional Office. The employees are

55

permitted to get promotion only when they have performed their service

with good respectable and with good efficiently.

5. WAGE & SALARY ADMINISTRATION:-

The CBI bank gives wage and salary to employees by their

seniority. Payment of the wage and salary sanctioned by Regional Office at

main branch and then give the wages and salary branch wise.

For Clerical Staff

3020

Basic

1353425

2254100

3205300

3406400

380

3Yrs. 3Yrs. 4Yrs. 3Yrs. 4Yrs.

7920680

8600380

8980 20 Years1Yrs. 1Yrs.

For Subordinate staff:

2750

Basic

552680

753010

903190

1103520

130

2Yrs. 2Yrs. 2Yrs. 3Yrs. 4Yrs.

4040150

4490170

5000 20 Years3Yrs. 3Yrs.

6. TRANSFER POLICY: -

The Central Bank of India follows the versatility policy. Under this

policy the employee is transfer after one or two month on other

department. So he/she is able to know more and more and handle the every

56

department. The branch transfer is done after completing the two or three

years.

7. TIME KEEPING SYSTEM: -

Generally in big organization there is a separate department for time

keeping handled by special officer with special mechanical time keeping

system like computer card. But the Central Bank of India has not followed

this system. They use other system for time keeping i.e. Attendance

register. All who are related with bank like manager, officer, clerks, peon/s

and Gunmen must require to signing in Attendance Register.

Their general times for banking activities are as follows:

Monday to Friday :- 11:00 AM to 4:00 PM

Saturday :- 11:00 AM to 2:00

8. ALLOWANCE: -

The following allowances are settled dated 14th February, 1995 with

effect from 1st November, 1997.

Dearness Allowance

The dearness allowance shall be payable as per the following:-

(i) Subordinate Staff

57

0.24% of pay.

(ii)Clerical Staff

0.24% of pay up to Rs. 7,100 plus

0.20% of pay above Rs. 7,100 and up to Rs. 11,300 plus

0.12% of pay above Rs. 11,300

City Compensatory Allowance

The city compensatory allowance shall be payable as per the

following rates:-

A. Clerical Staff

1.

At the higher CCA

centers including the

State of Goa.

4% of Basic pay

Minimum Rs. 125 p.m.

Maximum Rs. 250 p.m.

2.

At the lower CCA

Centers i.e. places with

population of 5 lacks

and over, State Capitals,

Chandigarh,

Pondicherry and Port

Blair.

3% of Basic pay

Minimum Rs. 100 p.m.


B. Subordinate Staff

1. At the higher CCA

centers including the

State of Goa.

4% of Basic pay


2. At the lower CCA

Centers i.e. places with

population of 5 lacks

3% of Basic pay

Maximum Rs.125 p.m.

58

and over, State Capitals,

Chandigarh,Pondicherry

and Port Blair.

House rent Allowance

The house rent allowance payable shall be as under:

AREA

Rate as % of pay

(No Min./ No

Max.)

1.Places with population of more than 12

lacks8.5 %

2.

Places with population of 2 lacks and over

(other than places in 1. above ) and State

Capitals and Capitals of Union Territories.

7.5 %

3. Places with population below 2 lacks 6.5 %

Transport Allowance

All permanent full time employee including those on probation shall

be paid with effect from 1st November, 1999 Transport allowance at the

rate of Rs. 65 per month.

Fixed Personal Allowance

The fixed personal allowance shall be released one year after

reaching maximum of the scale in respect of those employees who were

59

in services of the Bank and have drawn one advance increment on

account of industry level settlement on Computerization.

Hill and Fuel Allowance

This allowance is specially for the employee who works on height

places. The Hill and Fuel Allowance shall be payable at the following

rates.

At places situated at a height of : 10 %of pay

3000 meters and above (Max. Rs. 750)

At places situated at a height of : 5 % of pay

and over 1500 meters but below 3000 meters (Max. Rs. 260)

At places situated at a height of : 4 % of pay

and over 1000 meters but below 1500 meters (Max. Rs. 220)

Provident Fund

Provident Fund is a one type of fund but it is special for the

employee’s future life. It deducts from the employees salary and give

them after his retirement. The Provident Fund deducts 10% of the

employees ‘s salary.

Hospitalization

60

This Allowance is paid for the treatment of hospital by CBI. It is

100% for his/her and 75 % for his/her family.

The Management can allow reimbursement up to 100 % expenses

for Hospitalization (of Employee only) in case of prolonged illness

like Cancer, Tuberculosis, Heart Trouble, Diphtheria, Leprosy,

Kidney Ailment and other illness as may be decided by Central

Office.

Hospitalization expenses for Maternity (Normal) are not

imbursement. However, Operation Charges in case involving

interference because of complicated labour and caesarean

operation are reimbursable.

Medical Aid

Medical aid allowance is paid to CBI Employees for the payment of

simple disease like cough etc. The reimbursement of medical expenses

under medical aid allowance shall be restricted to an amount is

following:

Rs. 1000 per annum for workmen with service up to 5 years till

the completed of 5th year.

Rs. 1200 per annum for workmen who have completed 5 years of

service and above.

Cycle Allowance

This allowance is for traveling because of the work CBI. For

Example, give the document to the main branch or other branch. This

allowance is paid on amount of Rs. 45 per month in Mumbai, Calcutta,

Chennai and Delhi and other city Rs. 35 per month.

61

Halting Allowance

For journey for official duties outside his head quarter, he/ she shall

be paid halting allowance at following rate:

ParticularsHigher CCA

Centers

Lower CCA

Centers

Non CCA

centers

Clerical StaffRs. 140 per

Diem

Rs. 105 per

DiemRs. 90 per Diem

Subordinate

StaffRs. 110 per diem Rs. 75 per Diem Rs. 60 per Diem

Washing Allowance

The washing allowance is paid for cleanness. It shall be payable Rs.

50 per month.

Pension

Pension is paid to the person of the CBI after his retirement. The

pension is fixed percentage of his/her salary.

Special Pay

The Special Allowance is payable to compensate a workman for

performance or discharge of certain additional duties and functions

requiring greater skill or responsibility, over and above the routine duties

62

and functions of a workmen in the same cadre. The amount of special

allowance payable is as under:

ParticularAmount

of special pay Rs.

ParticularAmount

of special pay

Telephone operator 108 Relieving Telephone Operator 56

Audit Clerk-category A. 182 Comptist 213 -Category B. 43 Telex operator 269Teller Punch Card Operator 298

- Category A.- Category B.

351587

Accounting Machine Operator. 460

Stenographer 522 Head Clerk 522Assistant Head Cashier 280 Head Cashier-Category Special Assistant 971 “A” 460Agricultural Assistant 258 “B” 522Computer Operator 633 “C” 585Data Entry Operator 440 “D” 648

Encoder operator 378

Advanced Ledger Posting Machine Operator

540

For Subordinate staff :-Cyclostyle Machine Operator 145 Liftman 178

Relieving Liftman 107 Cash Peon 178Watchman 178 Armed Guard 300Bill Collector 300 Daftary 352

Head Peon 406 Air Conditioning Plant Helper 816

Electrician 816 Driver 923

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SERVICES

The Central Bank of India are totally committed to customer

satisfaction. It has been their effort to combine the best elements of warm,

personal service with cutting-edge technology. This approach has

empowered us to offer customer-friendly option and competitive policies.

The services which are provided to the customers by The ALLHABAD

Bank of India as given below:

(1) CENTRAL CARD

(2) CENTRAL CARD ELECTRONIC

(3) DEBIT CARD

(4) CASH MANAGEMENT SERVICES

(5) TELLER PAYMENT SYSTEM

(6) SAFE DEPOSIT VALUTS

(7) TRAVELLERS’ CHEQUES

(8) GIFT CHEQUES

(9) BANK DARFTS OR DEMAND DRAFTS

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1. CENTRAL CARD: -

It is a unique credit card offering you more and more facility and

convenience. It offers you the freedom to spend at a large number of

member establishments.

Eligibility Criteria Domestic Card

Tour personal annual income should not be below Rs. 75,000. A

copy of the Salary Slip/Form 16/IT return should be provided as

proof of income.

Holder of PAN as an Income Tax payee (Applied for status is

acceptable).

Identifiable and clearly spelt out residential and official/business

address either owned by the person or leased/rented/provided by

the employer.

Your age should not be below 21 years.

Fees for Domestic Central Card (Master Card & Visa Card)

For a fresh applicant the card is issued for one year, which is

renewed for 2 years on each expiry thereafter. The fees are as under:

A one time enrolment fee of Rs. 300.

Issuance fee of Rs. 400 for one year.

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At the time of renewal an annual fee Rs. 400 is charged per

annum. Since the card is renewed for a period of two years, the

renewal charge is recovered from you in two installments

Rs.400 per annum.

For photo-card Rs. 50 is charged each time the photo is

embossed.

We also issue add-on cards to the spouse, son or unmarried

daughter. The fee of the add-on card is same as the parent domestic card.

International Central Master Card

We presently issue only the International Master Card to our

customer going abroad for all bonafide purpose. The credit limit assigned

to the card is up to the Basic Travel Quota (BTQ). The issuance as well as

renewal fee of International Central Master Card is Rs.1000 only. This

card is valid for one year only.

Facilities Offered by Central Card

Our domestic card is accepted all over India and Nepal having

more than 1,10,000 Merchant outlets.

All retail outlets, petrol pumps, Indian railways, airlines,

hospitals, nursing homes, hotels, restaurants, departmental stores,

and grocery stores etc. now accept Central Card.

Mail Order/Telephone Order, Internet Transaction can also be

made through Central Card with prior approval/authorization

from our system.

Group Accident Insurance Scheme coverage up to Rs. 1 lacks.

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Apart from the above, the advance and cheque encashment facility is

one of the best facilities offered through our card. The details are as under:

You may avail the cash advance facility up to a maximum fixed

limit of Rs. 5000 per month. The cash advance facility is offered

through 600 odd selected branches all over India situated in

major towns and cities only.

The cheque encashment facility limit is Rs. 2,500 which is free of

charge and available at all branches of Central Bank of India.

Either you can avail the total amount of Rs. 5,000 in one month

by way of singing the charge slip i.e. through cash advance

facility or if you so desire, you can avail of both the facilities.

Then under cheque encashment you are allowed to have Rs.

2,500 (maximum) and the rest through cash advance facility,

since the aggregate limit when taken together is Rs. 5,00 per

month only.

If you do not pay card usage within the stipulated due date, service

charges 2.5% per month is levied (computed monthly) until the

outstanding is fully paid off.

2. CENTRAL CARD

ELECTRONIC: -

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Central Card Electronic is a new “entry level credit product” for the

emerging, untapped market segments that previously did not have access

to traditional bankcard payment products.

Features

It is designed for only at Electronic terminals. Acceptance at non-

terminal merchants is not allowed.

Account information is printed and embossed on the Card.

24-hour customer call centers are available in India.

There is zero lost Card liability.

Card will be replaced in seven days.

You will get be free accident insurance cover up to Rs. 1,00,000.

You will get free lost Card insurance cover to the extent of credit

limit.

You will be allowed Cheque Encashment facility, up to Rs. 2,500

per month at all the branches of Central Bank of India.

There is no fear of spending over the limit as only transaction

within the available limits would be authorized.

Access to ATMs of Master Card International for cash advance is

provided. You will also have unparalleled access to cash

anytime, anywhere at more than 7,90,000 Master

Card/Maestro/Cirrus ATMs worldwide.

Cash withdrawal limit

Domestic Card -- Rs. 5,000 per month.

Global Card -- Rs. 15,000 per month.

Eligibility

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Customer’s gross annual income should not be below Rs.50000/-

per annum. It should be supported with a copy pf salary slip or

other document.

Customer’s age should not be below 21 years.

Identifiable and clearly spelt out residential or office / business

address.

Fees and Charges

There is no joining fee.

An annual fee of Rs. 400/- is charged every year in advance.

The Card is issued / renewed every two years.

A nominal fee of Rs.50/- is charged for a Photo Card.

3. DEBIT

CARD: -

The debit cards are the most convenient & secure way to access

customer’s account globally. With the debit card customer can-

Withdraw money and check account balances from ATMs.

Make purchases of goods & services at stores, restaurants etc.

Customer’s account with the Bank gets debited online after

verification of customer’s PIN and the cash or goods / services are

dispensed to customer. Customer will get a listing of these transactions on

customer’s account statements / passbook.

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Features

Direct online debit to person’s savings or current account (in

customer personal name).

Completely safe and secure personal Identification Number (PIN)

based card.

Globally accepted at Merchant Establishments displaying the

Maestro / Cirrus logos. Over 5.3 million Merchant

Establishments and 600000 ATMs are available for accessing

him / her accounts any where, anytime.

24-hour Customer Call Centers available in India

Zero lost card liability.

Replacement Card

Itemized billing on your statement/passbook.

Fees & Charges

There are no transaction charges at the ATMs of Central Bank of

India.

Transaction charges are levied only at non-Central Bank

Maestro / Cirrus ATMs.

Rs. 30/- for cash withdrawal.

Rs. 6/- for balance enquiry.

Service charge of 2.5% on Railways & Petrol Pump

transaction.

Replacement of Lost Card

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A new card will be issued and sent to customer within a week of

reporting the loss of the card for a fee of Rs. 50/-

4. CASH MANAGEMENT

SERVICES: -

CENTRAL’S CENTQCC service offers fastest collection of

outstation cheques drawn on 345 locating enhancing liquidity and better

cash management of the customers with Assured Credit on Day-7 at a

lower cost.

CENTRAL’S CENTEXPRESS service offers collection of cheques

drawn on 110 major Metro and Urban locations with Assured Credit on

Day-4.

CENTRAL’S CENTINSTANT service offers DAY-01 Credit of

cheque drawn on 345 locations. This offers fastest rotation of funds at a

reasonable cost to the customers.

Pricing: Price is variable depending on the monthly volumes, average

cheque amount etc.

Who can avail Cash Management Services?

Corporate

Public, Private and Joint Firms

Existing Partnership Firms

Existing Proprietorship Firms

Individuals & Institutions

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Benefits to Customers: -

Better Cash Management.

Regular Computerized MIS / Reports

Instant Liquidity

Faster and Higher Turnover

5. TELLER PAYMENT

SYSTEM: -

This system is very helpful to the customer. In this system, the bank

can not give the token for the payment to the customer. So customer can’t

west their time and work doing very easily. In Teller payment up to Rs.

7,000 give the cash on hand to customer.

6. SAFE DEPOSIT

VALUTS: -

Eligibility

Locker can be hired out only to individuals, duly introduced either

in their single names or in their joint names.

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In case of locker hired in joint names, specific instruction

regarding operation of locket to be obtained.

No Locker to it hired out in the names of firms, Associations,

clubs and Limited companies without prior approvals of

controlling office.

No Locker to hire out to minors either jointly with major or in

single name.

The hirer is the lessee and the Bank is the lesser.

Operation

(1)Duly stamped memorandum of Letting of locker(SL-1) to be got

completed and signed by all the hires in the presence of custodian.

Cost of stamp to be recovered from the hirer.

(2) Specimen signature card(SL-2) with specific instruction regarding

operation of locker to be completed and signed by all hires in the

presence of custodian.

(3)After making entries in the pass Word Book, it should be signed by

all the hires.

(4)Appropriate advance rent for 1 year to be recovered from the hires to

the credit of C/D Nominal Safe Deposit Rent in locker account and a

receipt should be issued.

(5)Entries to be made in key Register, locker rent register, due date

diary, safe deposit locker ledger and vacant locker register.

(6)The hirer to be advised to sign the Attendance Register making the

locker no. date and hire of operation and then allowed to operate the

locker.

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(7)For subsequent operations also, hirer should sign the Attendance

Register in a similar manner. The Custodian Operation the master

key should countersign the register after duly verifying the specimen

signature and ensuring that the rent is not in arrears.

Surrender of Locker

The release clause on specimen signature and card should be

signed.

An empty locker can also be surrendered through a duly

authorized. However, an authorization letter stating the fact that

the locker is empty should be obtained. The Custodian should

then open the locker in the presence of authorized agent. If there

are contents in the locker it should be locked and the key handed

over back to the authorized agent. The hirers should be advised

to vacate the contents by coming to the Bank personally and

surrender the locker.

When a locker is surrendered, the lock thereon should be

interchanged with the lock of another empty locker. A few extra

locks can also be kept for this purpose.

Rent for Locker:

Group of LockerRent For One

Year

Rent For Two

Year

Rent For Three

Year

A Rs. 350 Rs. 665 Rs. 945

B Rs. 500 Rs. 950 Rs. 1350

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C Rs. 650 Rs. 1235 Rs. 1755

D Rs. 750 Rs. 1425 Rs. 2025

E Rs. 900 Rs. 1710 Rs. 2430

F Rs. 1500 Rs. 2850 Rs. 4050

G Rs. 1500 Rs. 2850 Rs. 4050

H Rs. 2500 Rs. 4750 Rs. 6750

I Rs. 3500 Rs. 6650 Rs. 9450

7. TRAVELLERS’

CHEQUES: -

This is also another instrument issued by bank for the remitted of

money from one place to another. This is issued for the benefit of the

traveling public, who do not want to risk carrying cash with them.

Central bank’s Travelers cheques are available in denomination of

Rs.100, Rs.500, Rs.1000, Rs.2500 and Rs.5000. Charge Rs.1/- per

Rs.100/-.

They are encashable at par at all the braches of Central Bank and

other leading Nationalized Banks with who Bank have reciprocal

arrangement.

They are valid till encased.

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8. GIFT

CHEQUES: -

The Central Bank Gift Cheques are ideal gifts for all occasions.

They are available in denominations of Rs. 11/-, Rs. 25/-, Rs. 51/-

and Rs. 101/-.

Issued free of charge and payable at par, at all the branches of

Central bank.

9. BANK DARFTS OR DEMAND DRAFTS: -

Banks issue drafts when money is to remitted from one place to

another. Section 85-A of the Negotiable Instrument Act defines a bank

draft as “an order to pay money, drawn by one office of a bank upon

another office of the same bank, for a sum of money payable by order on

demand.” It means that it is an order from one branch one another branch

of the same bank to pay a specified sum of money to the person mentioned

or to his order. As usual a draft is always payable on demand.

The draft is issued for consideration received in advance. The person

who remits the money is known as the purchaser of the draft. He pays the

banker a particular amount to be remitted and then he is issued a draft. The

purchaser then sends the draft, will encash it at the drawee branch of the

bank.

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SWOT ANALYSIS

The appraisal of Strengths, Weaknesses, Opportunities and Threats

of the bank is called SWOT Analysis.

(I) STRENGTHS: -

The management of the Central Bank of India, Laldarwaja branch is

Punctual, honest, polite, active and always ready to facilitate their

services to the customer.

The network of the Central Bank of India is very wide and this bank is

the profit making bank so bank gives more and more facility to their

customers.

In this bank, loan interest rate is lower than the other bank.

They gives the facility of the teller payment system means customer take

the payment up to Rs. 7000 directly.

They believe in customer satisfaction. They launched: The ‘C4C’ means

Centralite for Customers and the bank is firmly work towards it.

Through the ‘C4C’ initiative, they are set to bring a platform of

communication and interaction, thereby enhancing the quality and

service for customer.

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Central Bank of India is the first Indian bank.

It gives the facilitate of Safe Deposit Vault.

(II) WEAKNESSES: -

Branch at present is operating some his functioning manually which

should be removed by fully computerization of branch as generally in

the city all other co-operative and nationalize banks are fully

computerized and to meet with the times challenge. The branch should

also come out with latest computers to be in the field in their higher

competitive area.

The Central Bank of India can not give the facility of the ATMs in

Laldarwaja branch.

(III) OPPURNITIES: -

They want to cover a wide area network so in future they will open the

branch in poor and rich area.

In future, they provide the facility of “Voluntary Retirement Scheme”

(VRS) so new recruitment is available for new culture and generation.

They will start the facility of ATMs in Laldarwaja branch due to the

demand of the customers and according to modern times.

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(IV) THREATS: -

A first threat for public sector bank is the privatization of banking. The

working condition and services of private banks are better than

government bank.

It is true that the element of safety in Government bank is

more than private bank but it is not only one thing which is considered

while taking banking services. So public sector bank has to become

more efficient.

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BIBLIOGRAPHY

Banking Law & Practice : P. N. Varshney

University of Delhi, South campus, New Delhi.

Banking Theory Practices : Shri P.K.Shrivastva

(New Edition 2000)

Product Portfolio : The Central Bank of India.

(For Products & Services)

Web site of the Banks : www.centralbankofinda.co.in

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http://www.centralbankofinda.co.in/

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