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Banking has become an essential part of everybody’s life. Whether an individual, trader, professional or a Non-Resident Indian, banks play a vital role. Banks today offer varieties of services. Savings, Transfer of funds, Various types of loans, Deposit schemes and many other services are rendered by banks.

This site is created to render fruitful services to those individuals.

Backed by rich experience, rendering good service is the motto of this blog.

Let the usefulness of the blog be strengthened by your visit and suggestions.

KYC

KYC - Know Your Customer

Please explain the process of KYC:

KYC means “Know Your Customer”. It is a process by which banks obtain information about the identity and address of the customers. This process helps to ensure that banks’ services are not misused. The KYC procedure is to be completed by the banks while opening accounts and also periodically update the same.

To open a bank account, one needs to submit a ‘proof of identity and proof of address’ together with a recent photograph.

The Government of India has notified six documents as ‘Officially Valid Documents (OVDs) for the purpose of producing proof of identity. These six documents are Passport, Driving Licence, Voters’ Identity Card, PAN Card, Aadhaar Card issued by UIDAI and NREGA Card. You need to submit any one of these documents as proof of identity. If these documents also contain your address details, then it would be accepted as as ‘proof of address’. If the document submitted by you for proof of identity does not contain address details, then you will have to submit another officially valid document which contains address details.

ATM

What is ATM and how does it support Banks?

 ATM stands for Automated Teller Machine.

On most modern ATMs, the customer is identified by inserting a plastic ATM card with amagnetic stripe or a plastic smart card with a chipthat contains a unique card number and some security information such as an expiration date or CVVC (CVV). Authentication is provided by the customer entering a personal identification number (PIN).

Using an ATM, customers can access their bank deposit or credit accounts in order to make a variety of transactions such as cashwithdrawals, check balances, or credit mobile phones. If the currency being withdrawn from the ATM is different from that in which the bank account is denominated the money will be converted at an official exchange rate. Thus, ATMs often provide the best possible exchange rates for foreign travellers, and are widely used for this purpose

Eligibility for opening account

ELIGIBILITY CONDITIONS FOR OPENING OF RESIDENT INDIAN OR NRI ACCOUNTS
Account Type	Resident Indian / Domestic Accounts	Non Resident Ordinary (NRO) Accounts	Non Resident External (NRE) Accounts	Foreign Currency Non-resident (Bank) {FCNR (B)} Accounts
Status permitted	Resident Indians (RI) Foreign Nationals on employment in India*	NRI PIO OCI Foreign Students studying in India# Foreign Tourists on short visit to India	NRI PIO OCI	NRI PIO OCI
Conversion of Resident Indian / Domestic Savings Bank (SB) Account to	Not Applicable	Permitted	Not-permitted	Not-permitted
NRI (PIO/OCI) opening joint account with Resident Indian (RI)	Permitted but with following conditions : Mode of operation: 'Either or Survivor' only RI will be the primary/first account holder in the joint account and NRI (PIO / OCI) will be the second applicant Relation with RI joint account holder: Close relative only relative (as defined in Section 6 of the Companies Act, 1956)	Permitted but with following conditions: Mode of operation: 'Former or Survivor' only NRI (PIO / OCI) will be the primary / first applicant in the joint account Relation with RI joint account holder: Close relative only relative (as defined in Section 6 of the Companies Act, 1956)	Permitted but with following conditions: Mode of operation: 'Former or Survivor' only NRI (PIO / OCI) will be the primary / first applicant in the joint account Relation with RI joint account holder: Close relative only relative (as defined in Section 6 of the Companies Act, 1956)	Permitted but with following conditions: Mode of operation: 'Former or Survivor' only NRI (PIO / OCI) will be the primary / first applicant in the joint account Relation with RI joint account holder: Close relative only relative (as defined in Section 6 of the Companies Act, 1956)
Conditions related to opening of said account by applicants as per their Nationality / Citizenship
Nepal and Bhutan	Permitted	Not-permitted	Permitted	Permitted
Pakistan	Permitted	For NRI status:  Permitted For PIO & OCI statuses: -They can open but applicant has to take prior approval of the Reserve Bank of India.	It is permitted, only if applicant has taken prior approval of the Reserve Bank of India.	It is permitted, only if applicant has taken prior approval of the Reserve Bank of India.
Bangladesh	Permitted	It is permitted, subject to fulfillment of any one of the below:- If applicant has taken prior approval of the Reserve Bank of India. Applicant holds a valid visa and valid residential permit issued by Foreigner Registration Office (FRO)/ Foreigner Regional Registration Office (FRRO) concerned	It is permitted, only if applicant has taken prior approval of the Reserve Bank of India	It is permitted, only if applicant has taken prior approval of the Reserve Bank of India
Rest of the countries	Permitted	Permitted	Permitted	Permitted
Please Note: *Foreign nationals who come to India on employment and become residents in terms of section 2 (v) of FEMA, 1999 and are eligible to open/hold a resident savings bank account are permitted to re-designate their resident account maintained in India as NRO account on leaving the country after their employment to enable them to receive their legitimate dues subject to certain conditions. #NRO account be opened for Foreign Students studying in India on the basis of his/her passport (with appropriate visa & immigration endorsement) which contains the proof of identity and address in the home country along with a photograph and a letter offering admission from the educational institution, subject to following: Within a period of 30 days of opening the account, the foreign student should submit to the branch where the account is opened, a valid address proof giving local address, in the form of a rent agreement or a letter from the educational institution as a proof of living in a facility provided by the educational institution. Banks should not insist on the landlord visiting the branch for verification of rent documents and alternative means of verification of local address may be adopted by banks. During the 30 days period, the account should be operated with a condition of allowing foreign remittances not exceeding USD 1,000 into the account and a cap of monthly withdrawal to Rs. 50,000/-, pending verification of address. On submission of the proof of current address, the account would be treated as a normal NRO account, and will be operated in terms of extant instructions.

NEFT/RTGS

RTGS / NEFT

1. What is Inter Bank Transfer?

Inter Bank Transfer is a special service that allows you to transfer funds electronically to accounts in other banks in India through:

• NEFT - The acronym "NEFT" stands for National Electronic Funds Transfer. Funds are transferred to the credit account with the other participating Bank using RBI's NEFT service. RBI acts as the service provider and transfers the credit to the other bank's account.
• RTGS - The acronym "RTGS" stands for Real Time Gross Settlement. The RTGS system facilitates transfer of funds from accounts in one bank to another on a "real time" and on "gross settlement" basis. The RTGS system is the fastest possible interbank money transfer facility available through secure banking channels in India.

2. What is the minimum/maximum amount for RTGS/NEFT transactions?

Type	Minimum	Maximum
RTGS	Rs. 2 Lacs	No Maximum
NEFT	No Minimum	Rs.2 Lacs

3. When does the beneficiary get the credit for a RTGS payment?

Under normal circumstances the beneficiary Bank branch receives the funds in real time as soon as funds are transferred by the remitting Bank. The beneficiary Bank has to credit the beneficiary's account within two hours of receiving the funds transfer message. 

4. When does the beneficiary get the credit for a NEFT payment?

NEFT operates in hourly batches. Currently there are twelve settlements from 8 am to 7 pm on week days and six settlements from 8 am to 1 pm on Saturdays. Therefore, the beneficiary can expect to get the credit for the transactions put through between 8 am to 5 pm on weekdays (between 8 am to 12 noon on Saturdays) on the same day. For transactions settled in the 6 and 7 pm batches on week days and at 1 pm on Saturday, the credit will be afforded either on the same day or on the next working day. 

5. If an RTGS transaction is not credited to a beneficiary account, does the Remitter get back the money?

Yes. If the beneficiary's bank is unable to credit the beneficiary's account for any reason, the former will return the money to the remitting bank within 2 hours. Once the amount is received by the remitting bank, it is credited to the remitter's account by the branch concerned. 

6. If an NEFT transaction is not credited to a beneficiary account, does the Remitter get back the money?

Yes. If the beneficiary's bank is unable to credit the beneficiary's account for any reason, the former will return the money to the remitting bank within 2 hours of completion of the batch in which the transaction was processed. Once the amount is received by the remitting bank, it is credited to the remitter's account by the branch concerned. 

7. At what time during the day/week is the RTGS & NEFT service available?

RTGS transactions are sent to RBI as per the following schedule:

Day	Start Time	End Time
Monday to Friday	9:00 hrs	16:00 hrs
Saturday	9:00 hrs	13:00 hrs

NEFT transactions are sent to RBI as per the following schedule:

Day	Start Time	End Time
Monday to Friday	7:00 hrs	18:30 hrs
Saturday	7:00 hrs	12:30 hrs

NEFT transactions are settled in batches based on the following timings:

• 12 settlements on weekdays - at 08:00, 09:00, 10:00, 11:00, 12:00, 13:00, 14:00, 15:00, 16:00, 17:00, 18:00 and 19:00 hrs.
• 6 settlements on Saturdays - at 08:00, 09:00, 10:00, 11:00, 12:00 and 13:00 hrs.

Please note that all the above timings are based on Indian Standard Time (IST) only. 

8. What is the mandatory information required to make an RTGS & NEFT payment?

For effecting an RTGS/NEFT remittance the remitter has to furnish the following information:

• Amount to be remitted.
• Remitting customer's account number which is to be debited.
• Name of the beneficiary bank.
• Name of the beneficiary.
• Account number of the beneficiary.
• Sender to receiver information, if any.
• IFSC code of the destination bank branch.

9. How to find the IFSC code of the beneficiary branch?

In internet banking account, the remitter has the option of selecting the location of the destination Bank Branch in case the IFSC code is not known. If the correct values are selected for Bank, State and Branch, the IFSC code is automatically updated. 

10. Do all bank branches in India provide RTGS & NEFT service?

No. RTGS and NEFT services are enabled only in specific bank branches across the country. A list of such RTGS/NEFT enabled branches can be obtained from the RBI website,http://rbidocs.rbi.org.in/rdocs/RTGS/DOCs/RTGEB1110.xlsfor RTGS and http://www.rbi.org.in/scripts/neft.aspx for NEFT. 

11.How can funds be transferred through RTGS / NEFT?

1. Avail Internet Banking facility for your account with transaction rights. Contact your SBI branch for the purpose.
2. Log on to www.onlinesbi.com using Internet Banking ID and Password. Access the Profile tab and click on the Manage Beneficiary link.
3. Select Inter Bank Payee from the options provided.
4. Select 'Add' option and provide the Beneficiary Name, Beneficiary Account Number, Address and Inter Bank Transfer Limit in the relevant fields.
5. Enter the IFSC code of the beneficiary bank branch by either:
   1. Selecting the IFSC code option and entering 11 digit IFSC code in the textbox.
   2. Selecting the Location option and then the Beneficiary Bank, State and Branch form the drop down menus provided.
6. Click the 'accept Terms of Service (Terms & Conditions)' button followed by 'confirm'
7. A high security password is sent to the mobile number as an additional security measure. Enter this password to authorize the beneficiary.
8. The beneficiary added is activated in a maximum of 16 hrs time. Once activated you can transfer funds to the beneficiary.
9. To remit funds to the Inter Bank Payee through RTGS/NEFT select the 'Inter Bank Transfer' link in the 'Payments/Transfers' tab.
10. Select the Transaction Type - RTGS or NEFT.
11. The list of beneficiary accounts added is displayed.
12. Enter the Amount and select the beneficiary to be credited from the list.
13. Click on 'accept Terms of Service (Terms & Conditions)' and confirm.

12. What are the service charges applicable for RTGS/NEFT transactions?

Charges for RTGS are as:

Time of settlement at the Reserve Bank of India		Charges per Transaction for Outward Transactions
From	To
09:00 Hours	12:00 Hours	Rs.2 lakhs to Rs.5 lakhs	Rs.25/-
		Above Rs.5 lakhs	Rs.50/-
After 12:00 Hours	15:30 ( 13:00 hrs on Saturday hours)	Rs.2 lakhs to Rs.5 lakhs	Rs.26/-
		Above Rs.5 lakhs	Rs.51/-
After 15:30 Hours	16:30 hrs ( On week days)	Rs.2 lakhs to Rs.5 lakhs	Rs.30/-
		Above Rs.5 lakhs	Rs.55/-

Charges for NEFT are as:

Amount	Service Charge
Up to Rs.10,000/-	Rs.2.50/-
From Rs.10,001/- to Rs.1 Lakh	Rs.5/-
Above Rs.1 lakh up to Rs.2 lakhs	Rs.15/-
Above Rs.2 lakhs	Rs.25/-

13. Whom I can contact, in case of non-credit or delay in credit to the beneficiary account for NEFT transaction?

Please contact your bank/branch or the receiver bank/branch or the Customer Facilitation Service center of the banks.

VEHICLE LOAN

IB Vehicle Loan

Purpose / Objective	For purchase of New Two Wheeler or New / Used Four Wheeler(Used four wheeler should not be more than 3 years and should be certified by reputed automobile engineer / valuer)
Eligibility	• Salaried Class Individuals with minimum service of three years. • Businessmen, Professionals and Self-employed with minimum experience of three years. • Pensioners with repayment capacity. • Minimum Gross monthly income for purchase of Four wheeler should be Rs.20,000/-.
Amount of Loan	* 20 times of Gross Monthly Income Spouse Income can be included for calculating eligible amount if he / she has steady income. * Take home Income should be more than 40% of gross income after deduction of EMI for the proposed loan, apart from other deductions. * For Businessmen, Professionals & self-employed, based on their average income earned in the last 3 years and capacity / ability to repay the loan. * Maximum Loan amount for purchase of Two Wheeler : Rs.10,00,000/- * Four Wheeler: Rs. 2 Crores
Margin	* 15% for New Vehicle. * 40% for used vehicle (Four wheeler).
Processing fee	0.225% of loan amount with a maximum of Rs.10000/-
Interest Rates	Please see the Lending Rates link on home page of our Bank`s website
Repayment	Four Wheeler: Maximum 84 EMIs (No holiday period) for salaried class individuals; Maximum 60 EMIs (No holiday period) for others. For 2 wheeler: Maximum 60 EMIs (No holiday period)
Security	• Hypothecation of Vehicle to be purchased out of Loan. • If the loan amount exceeds Rs. 10 lakhs, additional security equivalent to amount exceeding Rs. 10 lakhs to be provided in the form of Fixed Deposit Receipts / NSCs / LIC Policy (with surrender value equivalent to the security to be provided) / Mortgage of immovable property.
Documents to be submitted for processing the application	1. Completed Application Form with passport size photograph. 2. Proof of Identity such as PAN Card / Voter`s ID/Passport/Driving License. 3. Proof of residence such as Recent Telephone Bill / Electricity Bill / Property Tax Receipt / Passport / Voter`s ID. 4. Proof of business address in respect of businessmen / industrialists. 5. Proof of Employment. 6. Salary Certificate. 7. Proof of other income like rent, interest on investment, if any. 8. Balance Sheet for the past three financial years in the case of Professionals, Businessmen & Self employed. 9. Income Tax / Wealth Tax (if applicable) Returns for the past 3 years. 10 Copy of Driving Licence. 11 Quotation for Vehicle to be purchased from the authorized dealer.

Home Loan

HOME LOAN SCHEME OF INDIAN BANK

IB Home Loan

Eligibility Minimum entry age is 18 years and maximum exit age is 60 years Amount of Loan * 36 times of Gross Monthly Income or 60 times of Net Monthly Income whichever is higher. * For Repair or Renovation: Rs. 5 lakhs (Max) Margin For Loans a) upto Rs. 20 lakhs : 10% b) above Rs. 20 lakhs upto Rs.75 lakhs : 20% c) above Rs.75 lakhs: 25% d) For repairs or renovation: 30% Processing fee 0.225% of loan amount with a maximum of Rs.20,000/- Interest Rates Please refer the Lending Rates link on home page in our Bank`s Website Repayment • Loans for purchase / construction of House / Flat: 20 years (including holiday period) • Maximum Holiday Period of 18 months allowed for Home Loans for the purpose of construction of House / Flat • Maximum repayment period for Repairs and Renovation: 120 months Prepayment charges NIL Security Equitable Mortgage of Property purchased / constructed out of loan proceeds *{Equitable Mortgage to be registered (at Applicant’s cost) if there is a provision for the same in the State where property is located } Documents to be submitted for processing the application 1. Completed Application Form with 3 passport size photograph. 2. Assets and liabilities statement in the Bank’s format from applicant(s), Co-applicant(s) and guarantor(s) 3. Proof of Identity such as PAN Card / Voter’s ID/Passport/Driving License. 4. Proof of residence such as Recent Telephone Bill / Electricity Bill / Property Tax Receipt / Passport / Voter`s ID 5. Proof of business address in respect of businessmen / industrialists. 6. Proof of Employment for salaried class. 7. Salary slips generally for the last 6 months. 8. Statement of Bank account of the applicant(s) for a reasonable period, say 6 months/12 months for verifying salary credit/other income/nature of transaction etc 9. Proof of other income like rent, interest on investment, if any. 10. ITR and Balance Sheet for the past three financial years in the case of Professionals, Businessmen and Self employed. 11. Form16/Income Tax / Wealth Tax (if applicable) Returns for the past 3 years 12. Agreement of Sale / Sale Deed. 13. Approved Building Plan. 14. Title Deed Documents for 13 years/30 years as the case may be. 15. Proof of title in the Revenue Records. 16. Property Tax receipts wherever applicable (Up-to-date EC, Legal Opinion from Advocate & Valuation of property from Engineer will be arranged by Bank at applicant`s cost) 17. Home Loan where security value is Rs.50 lakhs and above, valuation by two independent valuers has to be obtained. Value added Group Insurance cover: • At the option of the applicant, Group Insurance Life Cover is arranged at concessional premium (to be borne by the Applicant). • The Premium amount will be financed as a separate loan instead of financing as a part of the loan. Salient Features Home Loans can be considered a) to purchase / construct a new house / flat b) to purchase house site and construction of house thereon c) to purchase an existing house / flat d) to extend an existing house/ additional construction e) to repair / renovate an existing house / flat f) to take over Home Loans from other Banks / Housing Finance Institutions approved by National Housing Bank for Housing Finance. g) For reimbursement of cost incurred within a period of 6 months for purchase/construction of house/flat Insurance Property (offered as security) to be insured at borrower`s cost with Bank clause against fire, flood, earthquake, riot and other risks, which are normally covered by insurance companies

Educational Loan

Educational Loan

Eligibility	The applicant should be an Indian National. He/She should have secured admission to professional/technical courses in India/Abroad through Entrance Test/Merit based selection process.
Amount of Loan	For studies in India – Rs.15.00 lakh For studies Abroad - Rs.25.00 lakh
Margin	Upto Rs.4.00 lakhs - Nil. Above Rs.4.00 lakhs:For Studies in India - 5%. For Studies Abroad - 15%.
Interest Rates	Please see the Interest Rate link on home page
Repayment	Up to Rs.7.50 lakh : Repayable in 10 years Above Rs.7.50 lakh: Repayable in 15 years
Security	Upto Rs.4.00 lakhs - Coobligation of parents. No Security. Above Rs.4.00 lakhs and upto Rs.7.50 lakhs - Coobligation of parents together with collateral in the form of a satisfactory third party guaran. Above Rs.7.50 lakhs - Coobligation of parents together with tangible collateral security of suitable value along with the assignment of future income of the student for payment of instalments.
Salient Features	To meet the cost of education covering fee payable to college/school/hostel, exam fees, purchase of books/equipments, travel expenses/passage money for studies abroad, purchase of computers essential for completion of the course etc.
Other Requirements/Details	* Holiday Period : Course period plus 1 year or 6 months after getting job, whichever is earlier * Family Income : There is no restriction. The main emphasis is that no deserving student is denied an opportunity to pursue higher education for want for financial support. * Place of availment : The loan is to be availed from the branch nearest to the place of domicile of the student. * Course of study in India : Diploma/Graduation/Post graduation courses in various disciplinesComputer Certificate courses in reputed institutes accredited to the Department of Electronics. * Course of study abroad : Job-oriented professional/technical courses offered by reputed universities, MCA,MBA, MS etc.Courses conducted by CIMA - London, CPA in USA etc