उत्तर प्रदेश ग्रामीण बैंक
Uttar Pradesh Gramin Bank
CLEAN OVERDRAFT FACILITY FOR STAFF MEMBERS
1 Purpose For any bonafide need of officers / employees. This facility would be in lieu of
various existing staff loan facilities except housing loan & vehicle loan.
However, the account should not be allowed to be used for any transactions of
a speculative nature. Branches to report all cases of misuse to their respective
Regional Authorities / Head Office.
2 Eligibility All confirmed staff members who have put in minimum 2 years of service in the
Bank.
3 Limit Length of service (Service refers to the Officer Office Office
(Maximum) aggregate service in all cadres) Assistant Attendant
(M)/ Clerk (M)
a) 2 years & above but less than 10 years 6,00,000 4,00,000 2,00,000
b) 10 years & above 8,00,000 5,00,000 3,00,000
4 Total The total deductions from the salary of the applicant employee on account of
deductions statutory deductions, other loan installments and monthly interest on the clean
overdraft limit (assuming that the limit is fully drawn) should not exceed 65% of
the gross monthly emoluments.
5 Enhancement The employees will be eligible for enhancement in the existing limits as and
in limit when the eligibility of the limit changes on the basis of length of service and / or
promotion.
6 Rate of interest 7% p.a. on compounding basis with monthly rests.
7 Period of 12 months subject to annual review. Accounts falling due for review during the
sanction & month should be reviewed in the preceding month. The review of the account
annual review should be reported to Controlling Authorities.
8 Documents a) Application as per prescribed proforma (including an undertaking that the
loan will not be utilized for investment in shares, equities, etc., for
speculative purposes and authorizing credit of salary and allowances in the
overdraft account).
b) Demand Promissory Note.
c) Letter of Continuing Security with negative lien clause.
d) Personal guarantee letter from the PF/Gratuity Nominee/s.
e) Declaration / Undertaking from the employee (incorporated in application)
THAT (i) he / she shall not be entitled to apply / avail staff loans of any kind
from the bank other than housing loan, vehicle loan, PF loan sanctioned by
PF Trustee (ii) he / she shall not avail of any loans from outside sources for
which installments will have to be deducted from his / her salary and
remitted by the bank to such outside sources during the period of operation
of the Overdraft facility sanctioned by the bank and (iii) he / she has
understood all the terms and conditions of the overdraft scheme and shall
abide by the same failing which he shall render himself/herself liable to
repay the entire loan plus interest and will be ineligible for further facility
under this scheme or any other staff loan schemes, besides attracting
appropriate Disciplinary Action.
f) Letter of authority to the Bank to appropriate the Terminal Benefits (bank’s
contribution to PF, employee’s own contribution, Gratuity, Leave
encashment and / or any other amount payable to the employee) towards
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उत्तर प्रदेश ग्रामीण बैंक
Uttar Pradesh Gramin Bank
the liability under the overdraft facility if the employee ceases to be in the
service of the bank.
g) Unstamped undertaking from the nominee/s appointed under the PF /
Gratuity Fund Rules.
h) To record the employee’s consent in regard to all the terms of the sanction,
the employee’s signature should be obtained on the office copy of the
sanction signifying acceptance of terms and conditions of the limit.
i) L.A.D as and when due.
9 Sanctioning For staff posted at Branch/Regional Office: Chief Manager at RO / Regional
Authority Manager.
For staff posted at Head Office/ Camp Office: Chief Manager (HRM)/
AGM(HRM) of HO.
10 At which The overdraft account will have to be maintained at the salary paying Branch. It
Branch will be mandatory for the employees to designate the O/D account for credit of
overdraft their monthly salary and withdrawals will be allowed only as per limit available.
account will be
maintained
11 Service Charges Being a facility to staff members, there will not be any incidence of service
charges, ledger folio charges, cheque book charges etc in the overdraft account.
12 Interest on It is to be ensured that the Overdraft account is regular and not overdrawn for
over drawings any reason at all times. If, however, the account remains overdrawn on account
of interest debit, penal interest @2% p.a. would be levied on the irregular
portion for the period applicable over and above the normal interest charged.
The employee should be notified to adjust the overdrawn amount promptly
failing which appropriate Disciplinary action would be initiated.
13 Existing loans An employee will have the option to continue with the existing facilities already
or new availed, as hereto before, and not avail the overdraft facility. But, once the
overdraft – overdraft facility is availed, all staff loans, except Housing loan, Vehicle Loan,
option to staff loan sanctioned by PF trustees will cease to be available to the concerned staff
member. Such outstanding loans, if any, must be closed simultaneously while
availing the overdraft facility. All loans availed by the employee from outside
sources for which the Bank is deducting installments from the salary of the
employee and remitting to the outside lender shall also have to be closed
simultaneously for consideration of the Overdraft facility by the Bank.
14 Overdraft a/c The overdraft account cannot be opened in joint names.
in joint names
15 Disqualification The facility would not be sanctioned to staff members in the following cases:
for limit a) Employees under suspension
b) Employees to whom a charge sheet has been issued in a vigilance / non-
vigilance case for major penalty proceedings or Gross misconduct.
c) Employees who have remained on frequent leave on loss of pay /
extraordinary leave on loss of pay / unauthorized absence during the last one
year and those who have issued cheques without maintaining sufficient
balance in their accounts during the last one year. All other cases where
Disciplinary action is pending / contemplated would be considered for
sanction only after clearance from the respective Disciplinary Authority.
Page 2 of 27
उत्तर प्रदेश ग्रामीण बैंक
Uttar Pradesh Gramin Bank
16 Drawings in a. No further drawings in the account will be allowed to employees who are
case where put under suspension or to whom charge sheet for major penalty
employee is proceedings / gross misconduct is issued subsequent to the sanction of limit.
put under b. Unutilized limit will be frozen at the existing status on the date of
suspension or suspension.
to whom c. Any withdrawal to be allowed after adjustment of interest and other
charge sheet is statutory deductions and loan installments.
issued d. Subsistence allowance will be allowed to be withdrawn from the account
after adjustment of interest.
e. The Bank reserves its right to recover O/S in this account from subsistence
allowance.
17 Other loans The employees shall continue to avail other loans / advance facilities which are
not covered under any specific staff loan scheme and which are self-liquidating
like loan against NSC, Government securities, bank’s own deposits (LABOD),
Festival Advance etc.
18 Issuance of This being a multi-purpose account, branches should not issue any certificate to
certificate for IT authorities enabling employees to seek tax relief, as available in the case of
tax purposes loans for housing purposes.
19 Other The staff members who are desirous of availing the enhanced limit shall be
guidelines required to submit specific application to the Sanctioning Authority for
consideration.
Fresh set of documents for the enhanced/ new sanctioned limit should be
obtained.
While enhancing the limit of COD, the existing COD account number should
be kept unchanged.
20 General Bank reserves the right to modify / change any of the terms and conditions of
guidelines the Scheme or rescind the Scheme at any time.
21 Scheme Code For e-BUPB= OD003, For e-AB = OD261, For e-PUPGB= ODSCL/ODSTF/ODAST
(Till integration)
Encl: COD loan application as Annexure-A
Page 3 of 27
उत्तर प्रदेश ग्रामीण बैंक
Uttar Pradesh Gramin Bank
Annexure - A
APPLICATION FOR SANCTION / ENHANCEMENT OF CLEAN OVERDRAFT FACILITY
The Regional Manager/ Chief Manager,
Uttar Pradesh Gramin Bank,
Region/ Office……………..
Distt…………………………
Dear Sir,
I apply for Sanction / Enhancement of a clean overdraft for the total limit of Rs.…………….
(Including my existing limit of Rs……………………….), in terms of Bank’s Circular No.
…………………………….……………. dated …………
I hereby declare that I have already availed COD limit of Rs …………..………………. On ……………….(date of
sanction) from ………………………..(Name of Branch) …………………………… (Region) and present outstanding
is Rs………………………. as on date of application in my COD A/c No. …………………………………….(Please strike
out if not applicable )
I undertake to pay the interest as and when applied in the Overdraft account but maximum within a
period of 07 days and authorize you to deduct the same from my salary and other dues. I also
undertake to repay the entire outstanding in the account along with all interest due immediately in the
event of my ceasing to be in Bank’s service for any reason whatsoever.
01- Name of the Employee :………..………………………………EC. No ……………
02- Cadre : ………………………………………………………
03- Officer /Office Assistant / Office Attendant :…………………………………………………………….
04- Designation : ……………………………………………………………………………
05- Name of Branch / Office where posted……………………………………………….
06- Date of Joining : ………………………………………………………………………..
07- Date of Birth : ……….……………………………………………………………....
08- Name & relationship of P.F. nominee: ………………………………… …………….
09- Name & relationship of Gratuity nominee …………………………………………
10- Present residential address: …………………… ……………………………………………… … ……
11- Permanent residential address……………………………………………………….
…………………………………………………………………………………………….
12- Details of Loans Outstanding-
उत्तर प्रदेश ग्रामीण बैंक
Uttar Pradesh Gramin Bank
A Exigency Loan Rs. B Reg. H/ Loan Rs.
C Consumer Loan Rs. D Addl. H/ Loan Rs.
E Conveyance Loan Rs. F Any other Rs.
G H
13- I declare & undertake that on account of the Bank having sanctioned me an overdraft facility:
I will not utilize the same for transaction of a speculative nature and /or for investment is
shares, equities, etc. for speculative purposes.
I shall not be entitled to apply /avail staff loans of any kind from the Bank other than Housing
loan, Vehicle loan, and P.F. loan sanctioned by trustees if any.
I shall not avail any loans from outside sources for which installments will have to be deducted
and remitted by the Bank to such outside sources during the period of operation of the
overdraft facility sanctioned by the Bank.
I have fully understood all the terms and conditions of the overdraft scheme and shall abide by
the same failing which I will render myself liable to repay the entire out standings in my
overdraft account along with any interest due and shall also render myself ineligible for being
granted any further facility under the scheme or under any other staff loan schemes of the Bank
besides it being open for the Bank to initiate appropriate disciplinary action against me.
14 - I further authorize the Bank :
To designate the overdraft account for credit of my monthly salary and allowances.
To close all my staff loan accounts other than Housing loan, vehicle loan and P.F. loan
sanctioned by the trustees if any and transfer the balance outstandings in those accounts to the
newly opened OD account immediately.
Not to deduct any further installments from my salary for remitting to any outside lender after
sanction of the overdraft facility and to treat any earlier authority given by me in this regard as
revoked.
Place : (Signature of the applicant)
Date :
Name :……………………………
Encl : Please attach Latest salary slip