Promotion Exercise : 2021-2022

***Interview Notes***
(Updated upto 01-Feb-2021)

Compiled By
[Link] Siva
Faculty
Baroda Academy – SPBT College, Mumbai

Under the Guidance of

Shri. [Link]
AGM & Learning Head
Baroda Academy – SPBT College, Mumbai
 Dear Aspirants… First of all…
Congratulations…!
You have achieved first milestone by clearing Written Test, which is knowledge
based.

Now the assessment of Potential shall be made through the process of Personal
Interview by the Top-notch Interview panel.

Interview is an evaluation of your attitude, views and awareness levels, in short

potential in “You” is judged by interview board who are learned and experienced
people in their own field of specialization.

While facing Interview Panel., you should be:-

➢ Honest
➢ Simple
➢ Confident

Simple but powerful… “Be Yourself”

DISCLAIMER

This “Interview Notes” material is for “Internal Circulation of Bank of

Baroda” only, focusing mainly on the “Promotion Exam 2021-22.

In this material on “Interview Notes”, all efforts have been made to

incorporate latest and correct information of the related topics, but, in
case of any doubt please refer our Bank’s website, Circulars, Book of
Instructions, RBI Circulars, Standard Newspapers / Magazines,
Authenticated Websites, etc.

This material is provided as a last minute refresher and self-check by the

readers. It is not an exhaustive coverage of all the expected questions in
the Interview, for which readers are expected to be thorough with
various materials as stated above.

This “Interview Notes” written in “Spoken English” style to cater all needs.

Do not print unless extremely required.

Save Paper, Save Trees, Preserve Environment
 Topic – 1
Dress Code
Male Female
• Formal Dress
• Neat, Tidy, Clean and Well-groomed
• Carry one additional dress, if travelling long-distance
Light colour shirt (Sky blue or White) and Normal traditional dresses like Saree,
Dark colour pant (preferably dark sky blue) Salwar Kameez , etc .
Avoid too much dark or bright colours
Wear formal shoe ( preferably black with tied Keep ornaments/jewelry minimal and subtle
laces )
Use dark colour socks (preferably black).
Belt should match shoe colour. Any formal footwear .
Avoid big buckles . Wear matching socks if possible.
Wearing Blacer & Tie is optional but will give Matching colour dress - preferable
corporate look .
Belt, Shoe and Socks has to be in same
colour – Preferably Black or Brown

Topic – 2
Inside Interview Hall
➢ Before you enter the Interview Hall, gently knock door twice. Take permission. Greet
every panel member. (e.g. Good morning all of you Sirs, Good morning madam. You
should have eye contact with each & every panel member while greeting). Sit only after
the panel member asked to do so. Say thank you.
➢ Do not carry Purse / Document File / Mobile with you into Interview Hall.
➢ Enhance communication skill (can be practiced before mirror)
➢ Take care of Non-Verbal Communication : Postures and Gestures
➢ Always have smiling face. [Smile through lips and eyes]
➢ Avoid bluffing. Do not get emotional or nervous if you don’t know the answer. Try to maintain
your cool. If you don’t remember answer say “Sorry Sir/Madam, I am unable to recollect right
now.” OR if don’t know answer say “Sorry Sir/Madam, I don’t know the answer”.
Remember… you are not supposed to know everything on earth…
➢ If you wish to guess and reply to a question… seek permission
➢ Listen attentively. Avoid situation of repeating the question.
➢ Keep answers precise and to the point even if you know much more.
➢ Eye contact is very important. For each and every reply, maintain perfect eye contact
with each panel member to exhibit your self-confidence.
➢ For all opinion based questions give innovative answer with balanced view point
 Topic – 3
Self Profile
➢ Download your “Biodata from HR-Connect” : Thoroughly study your Profile
➢ Try to give unique Introduction about you. Don’t start with your name
➢ Strength, Weakness, Opportunities & Threats (SWOT)
➢ Your Achievements
➢ Previous Assignments
➢ Hobby

Topic – 4
Bank Profile
➢ I strongly suggest you to visit our Bank’s website :[Link]
➢ Refer My “Know Our Bank” MCQs / Notes
➢ Mission Statement
➢ Core Values
➢ Merger / Amalgamation
➢ Bank’s new initiatives
➢ Bank’s business strategies
➢ Bank Business : December 2020
➢ SWOT

Topic – 5
Our Bank Business – December 2020
➢ Total Business : Rs 16,99,981 Crore
➢ Total Deposits : Rs 9,54,561 Crore
➢ Total Advances : Rs 7,45,420 Crore
➢ Gross NPA : Rs 63,182 Crore : 8.48 %
➢ Net NPA : Rs 16,668 Crore : 2.39 %
➢ Net Interest Income – Rs 7,749
➢ Net Interest Margin – 3.07 %
➢ Operating Profit : Rs 5,591
➢ Net Profit : Rs 1,061
➢ CRAR : 12.93 %
 Topic – 6
Budget : 2021 - 2022
(Dated [Link].2021 – First Ever Digital Union Budget)

Six Pillars of Union Budget 2021-2022

1) Health and Wellbeing
2) Physical & Financial Capital, and Infrastructure
3) Inclusive Development for Aspirational India
4) Reinvigorating Human Capital
5) Innovation and R&D
6) Minimum Government and Maximum Governance

Financial:
1. Single securities market code: Centre to consolidate the provisions of the Sebi Act,
Depositories Act and two other laws, into a Unified Securities Market Code.
2. Investor Charter: Investor Charter to be introduced as a right for all investors in all financial
products to enable investor protection.
3. Support for development of a world class Fin-Tech hub at the GIFT-IFSC
4. A new permanent institutional framework to help in development of Bond market by purchasing
investment grade debt securities both in stressed and normal times
5. Setting up a system of Regulated Gold Exchanges: SEBI to be notified as a regulator and
Warehousing Development and Regulatory Authority to be strengthened
6. Capital infusion of Rs. 1,000 crore to Solar Energy Corporation of India and Rs. 1,500 crore to
Indian Renewable Energy Development Agency
7. Increasing FDI in Insurance Sector : To increase the permissible FDI limit from 49% to
74% and allow foreign ownership and control with safeguards
8. Stressed Asset Resolution : Asset Reconstruction Company Limited and Asset Management
Company to be set up
9. Recapitalization of PSBs : Rs. 20,000 crore in 2021-22 to further consolidate the financial
capacity of PSBs
10. Deposit Insurance : Amendments to the DICGC Act, 1961, to help depositors get an easy and
time-bound access to their deposits to the extent of the deposit insurance cover
11. SARFAESI : Minimum loan size eligible for debt recovery under the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act,
2002 proposed to be reduced from Rs. 50 lakh to Rs. 20 lakh for NBFCs with minimum asset size
of Rs. 100 crore
 12. Company Matters
➢ To decriminalize the Limited Liability Partnership (LLP) Act, 2008
➢ Easing Compliance requirement of Small companies by revising their definition under
Companies Act, 2013 by increasing their thresholds for Paid up capital from “not exceeding
Rs. 50 Lakh” to “not exceeding Rs. 2 Crore” and turnover from “not exceeding Rs. 2 Crore”
to “not exceeding Rs. 20 Cr”.
➢ Promoting start-ups and innovators by incentivizing the incorporation of One Person
Companies (OPCs):
• Allowing their growth without any restrictions on paid up capital and turnover
• Allowing their conversion into any other type of company at any time,
• Reducing the residency limit for an Indian citizen to set up an OPC from 182 days to
120 days and
• Allowing Non Resident Indians (NRIs) to incorporate OPCs in India.
➢ To ensure faster resolution of cases by:
• Strengthening NCLT framework
• Implementation of e-Courts system
• Introduction of alternate methods of debt resolution and special framework for
MSMEs
• Launch of data analytics, artificial intelligence, machine learning driven MCA-21
Version 3.0 in 2021-22

13. Disinvestment and Strategic Sale

➢ Rs. 1,75,000 crore estimated receipts from disinvestment in BE 2020-21
➢ Strategic disinvestment of BPCL, Air India, Shipping Corporation of India, Container
Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam limited etc. to
be completed in 2021-22.
➢ Other than IDBI Bank, two Public Sector Banks and one General Insurance company to
be privatized
➢ IPO of LIC in 2021-22
➢ New policy for Strategic Disinvestment approved; CPSEs except in four strategic areas to
be privatized
➢ NITI Aayog to work out on the next list of CPSEs to be taken up for strategic disinvestment
➢ Incentivizing States for disinvestment of their Public Sector Companies, using central funds
➢ Special Purpose Vehicle in the form of a company to monetize idle land
➢ Introducing a revised mechanism for ensuring timely closure of sick or loss making
CPSEs

14. Government Financial Reforms

➢ Treasury Single Account (TSA) System for Autonomous Bodies to be extended for
universal application
➢ Separate Administrative Structure to streamline the „Ease of Doing Business‟ for
Cooperatives

Health and Well-being:

1. PM Atmanirbhar Swasth Bharat Yojana: To be launched to develop primary, secondary
and tertiary healthcare systems, strengthen existing health systems and support future
health interventions with an outlay of about 64,180 crores over 6 years.
2. Mission Poshan 2.0 to be launched to improve nutritional outcomes across 112 aspirational
districts.
 3. Jal Jivan Urban Mission: To be implemented over five years with an outlay of Rs 2.87 lakh
crore.
4. Voluntary Vehicle Scrapping Policy to phase out old vehicles and reduce vehicular
pollution: vehicles will undergo fitness tests after 20 years in private vehicles, 15 years in
case of commercial vehicles.
5. Pneumococcal vaccine rollout: The pneumococcal vaccine, which is limited to only 5
states at present, will be rolled out across the country.
6. Swachh Bharat Mission (Urban) 2.0 would be implemented over five years — from 2021 to
2026 — on an outlay of ₹1.41 lakh crore.

Infrastructure:
1. Mega Investment Textile Parks- 7 textile parks will be added in the next three years.
2. Proposal to set up Development Finance Institution at a cost of Rs 20,000 crore.
3. A national monetising pipeline will be launched and a dashboard will be created to
overlook the progress.
4. The Indian Railways has prepared a National Rail Plan for India 2030. The plan is to
create a future-ready railways system by 2030.
5. New scheme to be launched to support augmentation of public bus service.
6. MetroLite and MetroNeo to be introduced in Tier 2 cities and peripheral areas of Tier 1
cities.
7. A framework to allow consumers of electricity alternatives to choose from more than
one distribution company.
8. National Hydrogen Mission for generating hydrogen from green power sources.
9. The major ports will be moved from operating services on their own and they can
enter into public-private partnership to get private players to operate and manage it for
them.
10. Ujjwala scheme, which has benefited 8 crore households so far, will be extended to cover 1
crore more beneficiaries.
11. Gas pipeline network to be taken up in J&K union territory and City Gas Distribution (CGD)
programme will be extended to 100 districts in next three years.

Agriculture:
1. Operation Green Scheme to be enlarged to cover 22 perishable crops.
2. 1000 more mandis to be integrated with E-NAM market place.
3. Agricultural Infrastructure funds will be made available to APMCs for augmenting their
infrastructure.
4. Five major fishing harbours to be developed into fishing hubs for economic activity
including Chennai, Kochi, Paradip, Petuaghat and Visakhapatnam.
5. Seaweed farming to be promoted -Multipurpose seaweed park to be established in Tamil
Nadu.
6. An Agriculture Infrastructure and Development Cess (AIDC) on select items such as
petrol, diesel, apples and alcohol.

Science and technology:

National Research Foundation (NRF) — an umbrella body that is expected to fund research
across a range of disciplines, from science and technology to humanities. The NRF would be an
autonomous body and represented by all major research and education bodies.
Defence:
Majorrecommendations of the 15th FC that were incorporated into the Union budget include:
1. Boost in health spending.
2. Higher borrowing limits for states.
3. A consolidation of Centrally-sponsored schemes or public programmes implemented by
states but largely funded by the Union government.
4. Creation of a non-lapsable defence and internal security fund either through allocation
from the divisible pool of funds shared by the Centre and states or through a cess.

Taxation:
1. To extend tax holiday for start-ups until March-end next year
2. To extend the capital gains exemption for investment in start-ups by another year to
encourage funding in the sector.
3. To incentivise one-person companies (OPCs) by allowing them to grow without any
restrictions on paid-up capital and turnover.

Topic – 7
Bank : Board of Directors
➢ Non Executive Chairman : Dr. Hasmukh Adhia
➢ Managing Director & CEO : Shri Sanjiv Chadha
➢ Executive Directors
• Shri S. L. Jain
• Shri Vikramaditya Singh Khichi
• Shri Ajay K Khurana
➢ Directors
• Shri Ajay Kumar
• Shri Amit Agrawal
• Shri Srinivasan Sridhar
• Smt. Soundara Kumar
 Topic – 8
Branch Profile - If you are working in Branch
➢ Name of your ZM / DZH / RM / DRM / BM?
➢ How many staff are there in your Branch ? (Officers / BAs / Sahayaks)
➢ Market profile of your Branch – Scope of business at Branch catchment area
• Other Banks in your area
• Their business level
• Type of business they are doing
➢ What is Deposit Level?
➢ What is percentage of CASA in Total Deposit?
➢ What is level of Loans and Advances of your Branch?
➢ How much Home Loans, Car Loan, SME, Agri ?
➢ Number of PPF Accounts / NPS Accounts in your branch?
➢ What is operating profit / loss of your branch as of last year / quarter?
➢ What was net profit?
➢ What is other income of Branch?
➢ Wealth Management Products?
➢ Branch Business Strategies
➢ SWOT
➢ Ongoing Campaigns

Important Branch Profile

➢ Total Business
➢ Total Deposits
➢ Total Advances
➢ Operating Profit
➢ Net Profit / Loss
➢ Gross NPA
➢ Net NPA
➢ Staff Strength
➢ Key Issues & Your Strategy

Topic – 9
Your Desk / Domain Related
Have an exact idea of what you are doing in your branch / Office. If you have any doubt, consult
some senior in branch
Your Involvement in Your Branch / Job…
Your involvement in Branch decision making especially domain operational issues, problem
solving, as trouble shooter. Share positive experience including Customer Service. Don’t give
negative answers – Be with Bank : Have Organizational Objectives

Be thorough in all areas related to your domain

 Topic – 10
If you are working in RO / ZO
If you are working at some Admin Office, kindly know your domain and have a profile of your
area. Viz…
➢ How many branches are there in your RO / ZO?
➢ Tell names of 5 largest branches in your RO / ZO?
➢ What is business level of your Region / Zone ?
➢ Region / Zone : Business Strategies
➢ Ongoing Campaigns

Topic – 11
If You the Faculty
Why have you joined as Faculty ?
➢ I worked as *** – Branch / RO (narrate little bit achievements / Experience)
➢ Now as a Faculty / Learning Head…. got a Holistic Development…
➢ Meeting different employees from different branches / departments - gaining vast
experience
➢ I am a keen learner and had skill to impart my knowledge to others.
➢ Maintain up-to-date knowledge about bank products and services
➢ Indirectly involved in the growth of the region /zone
➢ Personal development – Interpersonal skills
 Topic – 12
Common Questions
What is the meaning of your name ?
Try to get dictionary meaning of your name. Mostly names are names of Gods, Goddess.
Kindly keep something ready about them.

If you are late for the interview…

Reaching venue well in advance (at least one hour before) is mandatory.

Due to some unavoidable situation, if late. No worry. You may be late for some reasons,
explain it. Be honest. Nothing should be hidden

Don’t try to impress by emotional reasons. It’s dangerous.

If you haven’t cleared JAIIB / CAIIB / Other IIBF Courses / Gurukul Courses…
Don’t afraid if you have not done any of these exams. It is common among aspirants. Simply
accept it and go ahead. If you have genuine reasons – respond.
Otherwise don’t’ worry.

If Attended any specific external training / completed special course…

➢ Why you choose this exam / training?
➢ What is covered in the exam / training?
➢ How it is useful in your work?
➢ A few topics from syllabus / session may also be asked.

Your Future Plans : Personal & Professional…

➢ Career
➢ Your part in Bank’s business
➢ Enhancing qualification

Why do you want to get promotion…

Sir / Madam… I am a carrier oriented person and always look for new opportunities,
responsibilities and challenges. Moreover the job role of Scale-II / III / IV / V / VI is not
monotonous.

I have worked hard and treat this organisation as my own. I work with Organisational objectives.
I have worked with honesty, dedication and promise to continue my work with integrity. (here…
you highlight your performance – quote few instance)

I am open to learning and have learnt many new skills and will continue to do so. And, Sir, I will
continue to live up to Bank’s expectations.
Also, my financial stability will increase along with my promotion.

And, I respect the very thought that you are thinking of promoting me, smile….
What’s the difference between Scale- I & II & III & IV & V & VI
➢ Responsibility
➢ DLP
➢ Compromise Power
➢ Administrative Power
➢ Handling : Dept in Region / Zone
➢ Heading Big Branch with more number of Staff
➢ SARFAESI Power

Qualities required for a Leader / Manager :

I feel the leader has to take responsibilities by himself and has to work with Organizational
Objectives. Also, the core values of our Bank is itself explains, what the character, a leader and
other staff members should possess. They are…(6 Core Values of our Bank)
➢ Integrity
➢ Courage
➢ Excellence
➢ Passionate Ownership
➢ Innovation
➢ Customer Centricity

How will you receive / treat customer :

First of all, I greet them and offer them seat. Then I get all basic details such as name, contact
no., address, their job profile, income, etc…
Note them in a diary. If I know about the product, I shall explain to them.
If I don’t know the product, I take them to the concern department along with my noted points to
save time.
If concerned official is not available in the branch, I tell the customer accordingly and we will
call them once the officer arrived.
This is the normal procedure, which I follow in my office, sir.

Your Business figures are less than the target, Why ?

➢ Accept it - Remember it’s not Review Meeting
➢ Don’t give flimsy reasons
➢ If genuine reasons like Natural Calamity – Explain
➢ Convince the board by giving your other areas of achievement
➢ Explain them with strategies that you are adopting to improve business
 Topic – 13
Inflation
What is Inflation, Types of Inflation, How it is measured, Pros & Cons
Kindly refer to :
➢ [Link]
➢ [Link]
%20of,over%20some%20period%20of%20time.

Measures to Control Inflation

➢ Monetary Measures
• Credit Control including Open Market Operations (Repo Rate & Reverse Repo Rate)
• Demonetisation of Currency
• Issue of New Currency
➢ Fiscal Measures
• Reduction in Unnecessary Expenditures
• Increase in Direct Taxes
• Decrease in Indirect Taxes
• Surplus Budget
• Trade Measures
➢ Administrative Measures
• Rational Wage Policy
• Price Control
• Rationing

Repo & Reverse Repo

Repo Rate : The term ‘Repo’ stands for ‘Repurchase agreement’. Repo is a form of short-term, collateral-
backed borrowing instrument and the interest rate charged for such borrowings is termed as repo rate. In
India, repo rate is the rate at which Reserve Bank of India lends money to commercial banks in India if
they face a scarcity of funds. Commercial banks sell government securities and bonds to Reserve Bank of
India with an agreement to repurchase the securities and bonds from Reserve Bank of India on a future
date at a pre-determined price including interest charges. Present Repo Rate is 4%

Reverse Repo Rate : Reverse repo as the name suggests is an opposite contract to the Repo Rate.
Reverse Repo rate is the rate at which the Reserve Bank of India borrows funds from the commercial
banks in the country. In other words, it is the rate at which commercial banks in India park their excess
money with Reserve Bank of India usually for a short-term. Present Reverse Repo Rate is 3.35%
 Topic – 14
GDP & Other Related Terms
The Economy of India is characterized as a middle income developing market
economy. It is the world's fifth-largest economy by nominal GDP and the third-
largest by purchasing power parity (PPP).

According to the International Monetary Fund (IMF), on a per capita income

basis, India ranked 142nd by GDP (nominal) and 124th by GDP (PPP) in 2020

➢ Gross Domestic Product

GDP at market prices is equal to the sum of the Gross Value Added (GVA) of all
resident units plus those taxes, less subsidies, on products. It is the production
measure.

➢ Nominal & Real GDP

Nominal GDP measures a country's gross domestic product using current prices,
without adjusting for inflation. Contrast this with Real GDP, which measures a
country's economic output adjusted for the impact of inflation.

➢ Gross National income

GNI is the aggregate value of the gross balances of primary incomes of all resident
institutional units. It is an income measure.

➢ Purchasing Power Parity

Purchasing power parity (PPP) is an economic theory that allows the comparison
of the purchasing power of various world currencies to one another. It is a
theoretical exchange rate that allows you to buy the same amount of goods and
services in every country.
 Topic – 15
MCLR Vs RLLR
What is MCLR?
MCLR (Marginal Cost of funds based Lending Rate) is a tenor-linked internal benchmark that determines
the interest rate of retail loans like the home loan. It is the minimum rate at which a financial institution can
extend loans to its customers. The rate was introduced to increase the average revenue generated by
financial institutions through the extension of loans as per their marginal cost of funds. This is in direct
contrast to the base rate, which considered the aggregate cost of borrowings of lending institutions.

MCLR is calculated internally by the bank on the basis of Four Components – Marginal Cost of Funds,
Cash Reserve Ratio (CRR), Tenure Premium and Operating Costs.

Based on the above components, a 1-year MCLR formula for a bank = Interest rate offered by the
bank on 1-year term deposit + CRR + Tenure Premium + Operating Costs.

Our BoB - 1 Year MCLR as on 12/01/2021 is 7.40 %

Thus, banks set MCLR for different tenors – overnight, 1 month, 3 months and 6 months. But the final
MCLR-linked loan interest rate is decided by the bank after adding spread to the MCLR on the basis of
your credit profile, loan amount, tenure, etc.

What is RLLR?
RLLR (Repo Linked Lending Rate) is an external benchmark, wherein, the RBI’s repo rate is used by
commercial banks to calculate the retail loan interest rate. In case the repo rate of 5.75% is reduced by 35
basis points to settle at 5.40%, the RLLR of all banks having repo rate as the external benchmark will
reduce by 35 basis points. RLLR of all banks comprises the prevailing repo rate, tenure premium and pre-
set spread or margin maintained for adequate revenue generation.

MCLR Vs RLLR
In the following sections, the key differences between MCLR and RLLR are elaborated to help you
understand the new RLLR regime better.

MCLR and RLLR in a Nutshell

[Link] Parameters MCLR RLLR

1 Benchmark Link Internal mechanism of bank External (RBI Repo Rate)
2 Reset Period 6 or 12 months, depending on the bank 3 months
3 Transmission Rate Relatively slower Faster transmission
Let us understand How MCLR is different from RLLR.

1. Benchmark Linking: MCLR and RLLR follow different benchmark systems. MCLR is an internal
benchmark of the bank, which implies that it is set by the lending institutions after taking into
account their own cost of funds. Here, the repo rate is not the sole factor determining the lending
rate. Factors like g-sec rates, low-cost deposits, banking system liquidity, etc. affect the cost of
funds for banks. Hence, a reduction in the repo rate does not translate to a similar fall in the MCLR
of banks.

RLLR, on the other hand, is an external benchmark that is linked to the repo rate. The bank’s own cost of
funds is not impacted by any change in the repo rate. Hence, whenever RBI revises the repo rate, the
bank’s RLLR gets changed, thus, affecting the RLLR-linked home loan interest rate. Every bank has its
own RLLR. Moreover, the external benchmark ensures standardisation and provides greater
transparency, as borrowers do not rely on banks to inform them about rate changes. They can track the
benchmark themselves.

2. Reset Period: In case of MCLR linked home loans, the rest period is usually 6 months or 12
months. This means that banks would revise their MCLR every 6 or 12 months. A change in MCLR
would accordingly change the home loan interest rates and subsequently the loan EMIs. Such a
long reset period gives a time-lag to MCLR-linked loans.

In case of RLLR, the reset period is of 3 months. This implies that your interest rate of RLLR-linked loans
would help to revise the EMIs every 3 months. This way, the borrowers would be able to enjoy the benefit
of the repo rate cut. However, in case of a rise in the repo rate, the loan rates will also increase quickly.

3. Volatility: The volatility or the frequency at which floating loan rates change can be determined by
whether they are linked to RLLR or MCLR. As per RBI guidelines, the interest rates linked to RLLR
are subject to revisions every 3 months. In other words, any change in the repo rate will reflect in a
change in the RLLR of commercial banks every 3 months. The MCLR-linked loan rates, on the
other hand, are revised once every 6 or 12 months. Hence, the volatility of the loan rates linked to
RLLR is more compared to the volatility under the MCLR regime.

BRLLR
As per Circular No. BCC:BR:111/490 dt. 27/Sep/2019 : Baroda Repo Linked Lending Rate
(BRLLR) will be the new internal benchmark lending rate for all new sanctions of floating rate
personal or retail loans (housing, auto, etc) and floating rate loans to Micro and Small
Enterprises w.e.f 01/Oct/2019.

BRLLR = RBI Repo Rate + Mark Up / Base Spread

w.e.f. 01-Nov-2020: For Retail Loans applicable BRLLR is 6.85 %

(Current RBI Repo Rate: 4 % + Mark-Up: 2.85 %). Strategic
Premium : 0.25%

Risk Premium of 0.05% will remain applicable as per extant guidelines

 Topic – 16
IOCL Vs BoB
In Feb’ 2020, the Calcutta High Court has directed the Reserve Bank of India (RBI) to contemplate
taking suitable steps against the Bank of Baroda (BoB) such as cancelling its licence for failing to
honour a Bank Guarantee furnished by a third party to Indian Oil Corporation Ltd (IOCL).

What is the case?

IOCL had entered into an agreement with Simplex Projects Limited in 2017 for conducting certain
work at the Bongaigaon facility of the oil marketing company in Assam. In order to carry out the
work Simplex was required to furnish a bank guarantee on account of security deposit.

The BoB then provided an unconditional bank guarantee of around Rs 6.97 crore on behalf of
Simplex. As stated in the order, Simplex did not honour the contract signed between it and the
IOCL which issued several notices and ultimately invoked the bank guarantee.

IOCL argued that the bank did not have any right to delay immediate payment of the unconditional
bank guarantee, least of all seek extra time. The oil marketing company also alleged that the BoB
informed Simplex about the invocation of the bank guarantee.

Following this, the company (Simplex) immediately initiated proceedings under Section 9 of the
Arbitration and Conciliation Act, 1996 before the Delhi High Court (HC), in accordance with the
arbitration agreement contained in the contract signed between IOCL and Simplex.

As per the IOCL's submission, the Delhi High Court had also found that the bank guarantee was
unconditional and the payment there under could not be avoided once the guarantee was invoked.

Despite the Delhi HC's observation, the bank did not release the payment (in terms of unconditional
guarantee) saying that the money may not have been given by Simplex to the bank.

It was against this background that the IOCL contended that given the conduct of the BoB which
was unbecoming of a nationalised bank, a suitable order should be passed to repeal its licence.

Coinciding with the submissions made by the IOCL, the Calcutta HC's division bench directed the
RBI to take the required steps in this direction.

Now, BoB has decided to exercise its rights available under law, by preferring a challenge against
the order passed by the Calcutta High Court before the Supreme Court of India.
 Topic – 17
Crypto-Currency / Blockchain : Future Bank
Blockchain Technology has spread very fast, and Crypto Currencies have received vast
popularity. There is no doubt that the world is curious to see how this promising technology will
influence or shape the future of banking.

The many interesting characteristics of Blockchain technology make it not only very attractive
but also capable of solving numerous banking issues.

Blockchains do not contain books, but digital assets — crypto currencies. Blockchain
transactions are immutable. Meaning, transactions are impossible to alter once they are signed
in a block and all of the nodes (computers) connected to the blockchain, continuously approve
these transactions, preventing fraudulent activity
➢ Blockchain enhances safety in data storage and transmutation
➢ Avails a decentralized and transparent network infrastructure
➢ Reduces the costs involved in operations
➢ Payment:BanksandfinancialinstitutionscanimplementBlockchaintechnology,in general,
to reduce costs and increase speed when making bank-to-bank and
[Link] agree
that blockchain technology is very likely to replace the SWIFT bank transfer system in
the near future
➢ Client identification system : Banks perform KYC (Know Your Client) before
processing any applications. With the use of blockchain, users will be identified on a
single occasion, and the information will be stored in a secure location where all banks in
the system can access it.
➢ The security, ease of use, and accessible nature of blockchain technology are all quite
mind-blowing

Supreme Court allows trade in Crypto-Currency

Quashes RBI curb
(Supreme Court Verdict dt. 01-Mar-2020)
The Reserve Bank of India had virtually banned Crypto-Currency trading in India as in a circular issued on
April 6, 2018, it directed that all entities regulated by it shall not deal in virtual currencies or provide
services for facilitating any person or entity in dealing with or settling those. Regulated entities that were
already providing such services were told to exit the relationship within three months.

The April 6, 2018 circular was later challenged in the top court.

The Internet and Mobile Association of India, representing various Crypto-Currency exchanges, had argued
that trading in Crypto-Currency in the absence of a law banning those was a “legitimate” business activity
under the Constitution. The RBI could not have denied them access to banking channels to carry on such
business, it said.

The Supreme Court on 01-March-2020, struck down the curb on Crypto-Currency trade in India.
“SC rules curb on Crypto-Currency trade illegal,” the report said while adding that the order lifted ban on
trading in Virtual Currency, Crypto-Currency and Bitcoins.
Impact of Crypto Currency in Bank : A paradigm shift in the conventional methods of banking might
occur in the near future. The concept of centralization has been embraced for hundreds of years and the
introduction of bitcoin and its underlying technology (blockchain) gives rise to a new concept called
decentralization. This concept gives more financial liberty to consumers and their own personal financial
management, ergo increasing transparency and freedom of the consumer’s money. In contrary to that of
traditional centralized entities (banks) which do not offer such benefits.

Alternative methods of remittance like Bitcoin are gaining traction as a way to send large amounts of
money peer-to-peer (P2P). Bitcoin users can handle many of their daily payments needs themselves,
without the need for interaction with banks, and avoiding the need to incur bank fees.

Topic – 18
COPRA
➢ Consumer Protection Act,1986
➢ It is replaced by – The Consumer Protection Act, 2019 (Not yet – Come into force)
➢ 15th March – Consumer Day
➢ Any consumer individually or jointly, consumer organization – can file complaint within -2-
years from the date of cause of action preferably within 3months.
Pecuniary Limit COPRA – 1986 COPRA - 2019
District Forum Upto Rs 20 Lac Upto Rs 100 Lac
State Commission Rs 20 Lac – Upto Rs 1 Crore Rs 100 Lac to Rs 1000 Lac
National Commission Rs 1 Crore and Above Above Rs 1000 Lac

Topic – 19
Right to Information Act, 2005
An Act to provide for setting out the practical regime of right to information for citizens to secure
access to information under the control of public authorities, in order to promote transparency
and accountability in the working of every public authority, the constitution of a Central
Information Commission and State Information Commissions and for matters connected
therewith or incidental there to.
Office Public Information First Appellate Authority
Officer
Region Regional Head Zonal Head
Head Office DGM – Operations General Manager - HO
BCC General Manager - BCC Executive Director
Second Appeal / Complaint - Central Information Commission
➢ On receipt of application : PIO / Appellate Authority – reply within 30 Days
➢ Appeal to FAA – within 30 Days from the receipt of the reply from Appellate Authority
➢ Second Appeal to CIC within 90days
 Topic – 20
Banking Ombudsman
➢ RBI announced the Banking Ombudsman scheme, 1995 under Section 35-A of Banking Regulation
Act 1949. It was revised in 2002 and 2006. Currently Banking Ombudsman Scheme, 2006 (as
amended upto July-1-2017) is in operation.
➢ The Ombudsman has the authority to look into the complaint in the following areas :
• Any complaint related to banking service
• Refer the complaint to concerned bank and facilitate redress / settlement by agreement
between the bank and aggrieved party
• If the complaint is not settled by agreement within the period of one month, pass an award
after listening to both the parties
• If bank is unable to comply with the award – bank shall file a review petition within one
month from the date of receipt of copy of award
• Dispute between Banks / Bank / its constituent – Claim can’t exceed Rs 10.00 Lacs
• The time limit for award is fixed at Six Months from the date of first hearing

➢ For approaching to Ombudsman for banking complaints following are the conditions :
• The complaint can be filed either by the customer or authorized representative (except by
the advocate)
• One can file a complaint if the reply is not received from the bank (or bank rejects or reply
not satisfactory) within a period of one month – from the date of receiving the complaint.
• A period of “1 Year” has not elapsed after bank had rejected the representation.
• It is not the subject matter already settled by ombudsman / not pending with any court.
• Individual – claim can’t exceed Rs 20.00 Lacs
➢ The Banking Ombudsman may award compensation not exceeding Rs 1.00 Lac to the complainant
for mental agony and harassment
➢ Appeal within 30 days of the date of receipt of the award – Appellate Authority – Deputy Governor
of RBI. However further extension of 30 days can be provided by Appellate Authority on case to
case basis

For Details Refer to Below Website Link

Copy & Paste the below link in URL (or) [Link]
[Link]
 Topic – 21
For Faculty Members
Impact of Training System – Advantages
➢ Many employees find that the Training & Development system is an expensive one and
waste of time.
➢ But, Training provides an opportunity to expand the knowledge base of all employees
➢ Training - Provides both the company as a whole and the individual employees with
benefits that make the cost and time a worthwhile investment.
➢ Now bank has a big knowledge gap due to vast retirement…
➢ Most employees have some weaknesses in their workplace skills. A training program
allows them to strengthen those skills that each employee needs to improve.
➢ An employee who receives the necessary training is better able to perform her job.
➢ The training builds the employee's confidence because he / she have a stronger
understanding of the Bank and the responsibilities of his / her job.
➢ A structured training and development program ensures that employees have a
consistent experience and background knowledge
➢ Other benefits include…
• Improve Employee Performance & Morale
• Address weakness of employee and Improves consistency
• Increase productivity and adherence to quality standards
• Increase innovation in new strategies and products :: Ongoing training and up
skilling of the workforce can encourage creativity. New ideas can be formed as a
direct result of training and development
• Reduce employee turn over : Improves Employees retention and growth –
staff are more likely to feel valued if they are invested in and therefore, less likely
to change employers. Best example is Bank of Baroda tie up with Manipal
• There is a need for change in the environment for employees
• Enhances company reputation and profile – Having a strong and successful
training strategy helps to develop your employer brand and make your company a
prime consideration for graduates and mid-career changes
• Training system provides human touch – so shouldn’t be dismantled.

Training / Faculty Member helps branches :: LLPS., Recovery., CMA., Proposal preparation.,
Finacle., Customer Relation Management., Sales & Marketing., Core Values through
Nukkad Natak., Documentation., Induction for Newly joined employees., Life Cycle
Training….. 100 % indirectly helps for the growth of the business.

(with little bit smile and very soft spoken words)……What the Schools / Colleges /
Universities… doing for the upliftment for the country – the Baroda Academy, doing for
the growth of our Bank….

(with little bit smile and very soft spoken words)……What… Teachers / Professors… doing
for the upliftment for the country – the Faculties, doing for the growth of our Bank….
 Topic – 22
[Link] - Launch of Retail Products:
Contactless Auto Loan in BOB
➢ [Link] in an online marketplace to cater to various financial aspirations
of individuals and businesses in a simple quick and handle freeway.
➢ To address the credit needs, it was decided during PSB 'Manthan' held at Gurugram on
11- 12 November, 2017, that SIDBI in partnership with other Banks would develop and
adopt a contactless lending platform approach for MSME loans. The contactless loan
platform for MSMEs was launched on 25.09.2018 and is functioning satisfactorily.
➢ The Platform has set a new benchmark in loan processing by reducing turnaround time for
in-principle approval from days to less than 59 minutes. Post receiving in principle
approval letter the loan is expected to be sanctioned disbursed in around 7-8 working
days. The Platform is currently being used by the PSB Banks and leading Private Sector
Banks & NBFCS.
➢ Based on the success in granting seamless loans to MSMES, Home Loans & Personal
Loons were launched on 01.09.2019. The platform now has developed capability for
offering contactless auto loans as well.

➢ The Platform provides :

a) Business Loan (Term Loan and Working Capital Loan) in principle approvals
for value from INR 1 Lac to INR 5 Crore and
b) Mudra loan in Principle approvals are currently provided for value from INR
10,000 to INR 10 Lac.
c) Personal Loan in principle approval are currently provided for value up to INR 20
Lacs,
d) Home Loan In-principle approvals are currently provided for value up to INR 10
Crores and
e) Auto Loan in principle approval are currently provided for value sip to INR1 Crore.

➢ The user friendly portal offers contactless journey where a borrower is not required to visit
bark brunch for a principle approved. The Platform uses advance algorithm to analyze
data points from various sources such an IT returns, GST data, Bank Statements etc.

➢ Our Bank started Auto Loans on this platform after certain changes have been incorporated
in the scoring model to harmonize the parameters with the CLP platform.

➢ Branches will be receiving the leads generated on the Online PSB Loans portal through mail
/ SMS. Branch officials can access the loan applications through their existing user ID
assigned on the platform.
 Topic – 23
New CRISIL Rating Model – ICON
➢ NEW CRISIL RATING MODEL "ICON" FOR COMMERCIAL ADVANCES CUSTOMERS
ENJOYING CREDIT LIMITS OF RS 200 LACS AND ABOVE (FB+NFB)
➢ Bank has procured the new, upgraded and enhanced rating model namely 'BOBICON"
from M/s CRISIL and shall launch new application shortly.
➢ BOBICON, the New Risk Assessment System, is agile, modular and flexible system
allowing bank to perform internal credit rating for their borrowers. The new system allows
the flexibility of hosting multiple models for specific segments of the bank

Topic – 24
Bank Mission Statement
To be a top ranking National Bank of International Standards committed to augmenting stake holders’
value through Concern, Care and Competence

Bank’s Learning & Development

Policy Mission Statement
To transform the Bank’s Human Capital into Ethical, Competent, Motivated, Customer Centric and
Process Focussed Bankers through Training and Research

Bank’s Training System - Tagline

Inventing Methods for Igniting Minds

Bank’s Training Academies

➢ 1 ApexAcademy
➢ 18 Zonal Academies
➢ 4 BSLUs (Baroda Satellite LearningUnit)
 Topic – 25
Peer to Peer Lending
Peer-to-Peer Lending, also abbreviated as P2P Lending, is the practice of lending money to
individuals or businesses through online services that match lenders with borrowers. Peer-to-peer
lending companies often offer their services online, and attempt to operate with lower overhead and
provide their services more cheaply than traditional financial institutions. As a result, lenders can
earn higher returns compared to savings and investment products offered by banks, while
borrowers can borrow money at lower interest rates, even after the P2P lending company has
taken a fee for providing the match-making platform and credit checking the borrower. There is the
risk of the borrower defaulting on the loans taken out from peer-lending websites.
Also known as Crowd Lending, many peer-to-peer loans are unsecured personal loans, though
some of the largest amounts are lent to businesses. Secured loans are sometimes offered by using
luxury assets such as jewelry, watches, vintage cars, fine art, buildings, aircraft, and other business
assets as collateral. They are made to an individual, company or charity. Other forms of peer-to-
peer lending include student loans, commercial and real estate loans, payday loans, as well as
secured business loans, leasing, and factoring.
The interest rates can be set by lenders who compete for the lowest rate on the reverse
auction model or fixed by the intermediary company on the basis of an analysis of the borrower's
credit. The lender's investment in the loan is not normally protected by any government guarantee.
On some services, lenders mitigate the risk of bad debt by choosing which borrowers to lend to,
and mitigate total risk by diversifying their investments among different borrowers.
The lending intermediaries are for-profit businesses; they generate revenue by collecting a one-
time fee on funded loans from borrowers and by assessing a loan servicing fee to investors (tax-
disadvantaged in the UK vs charging borrowers) or borrowers (either a fixed amount annually or a
percentage of the loan amount). Compared to stock markets, peer-to-peer lending tends to have
both less volatility and less liquidity.
Typical characteristics of peer-to-peer lending are:

➢ It is sometimes conducted for profit;

➢ No necessary common bond or prior relationship between lenders and borrowers;
➢ Intermediation by a peer-to-peer lending company;
➢ Transactions take place online;
➢ Lenders may often choose which borrowers to invest in, if the P2P platform offers that
facility;
➢ The loans can be unsecured or secured and are not normally protected by government
insurance;
➢ Loans are securities that can be transferred to others, either for debt collection or profit,
though not all P2P platforms provide transfer facilities or free pricing choices and costs can
be very high, tens of percent of the amount sold, or nil.
 Topic – 26
Co-orgination
Today, banks face challenges in offering credit to the priority sector, which includes MSMEs,
education, agriculture, export, social infrastructure, housing and renewable energy, among others.
On the other hand, digital lenders have immense geographical reach, even to remote locations.
With the introduction of the Co-origination model, also known as Co-origination, the RBI has
opened the doors for banks to achieve their priority sector loan targets by leveraging the reach of
digital lenders.

The RBI has stated that co-origination is a “joint contribution of credit by both lenders,” in a
way that both risks and rewards are shared between the banks and NBFCs.
Co-origination is a new system introduced by the RBI in the wake of the liquidity crisis at non-
banking finance companies to enhance the credit flow to productive sectors.

In short, co-origination offers benefits for both banks and non-deposit taking NBFCs or digital
lenders. Co-Orgination by NBFCs and banks is a significant step towards an efficient framework for
microfinance and MSME lending in India.

The co-origination mechanism also gives the banking sector another avenue to meet their priority
sector lending (PSL) requirements which include securitisation (pass-through certificates and direct
loan assignments), priority sector lending certificates (PSLCs), business correspondent or BC
model, apart from direct lending.

Way Forward :
Co-origination, however, will necessitate significant groundwork from both the bank and the NBFC
before it takes off. Both need to work on a mutually acceptable sourcing and credit policy which
must be also approved by their boards. They will need to enter into a tri-partite agreement with
each borrower and have a separate account to monitor the funds movement under this model.

Co-Lending
Co-lending is coming together of entities in the financial sector – mostly, something that happens
between banks and NBFCs, or larger banks and smaller banks. Financial interfaces between
different financial entities may take the form of securitisation, direct assignment, co-lending,
banking correspondents, loan referencing, etc.

(The primary focus of the scheme, rechristened as "Co-Lending Model" (CLM), is to improve the
flow of credit to the unserved and underserved sector of the economy and make available funds to
the ultimate beneficiary at an affordable cost, considering the lower cost of funds from banks and
greater reach of the NBFCs)

While direct assignment and securitisation have been around for quite some time, co-lending was
permitted by the RBI under its existing guidelines on ‘Co-origination of loans between banks and
NBFC-SIs for granting loan to the priority sector. As per the Statement on Developmental and
Regulatory Policies issued by the RBI dated October 9, 2020, it was decided to expand the scope
of co-lending, currently permitted only for NBFC-SIs, to all NBFCs. Accordingly, the RBI came, vide
notification on co-lending by banks and NBFCs (Co-Lending Model/CLM) dated November 5, 2020,
with a new regulatory framework for co-lending, of course, in case of priority sector loans. The CLM
supersedes the existing guidelines on co-origination.

There is no clarity, still, on whether the non-priority sector loans (PSL or Non-PSL) will also be
covered by this regulatory discipline, or any discipline for that matter.
 Topic – 27
Prompt Corrective Action
Background: The RBI began to place state-run banks under the PCA framework for the
first time in September 2016, when their NPAs soared beyond the regulatory tolerance
levels (10%) and CRAR less than prescribed limit (9%).

What is PCA? PCA norms allow the regulator to place certain restrictions such as halting
branch expansion and stopping dividend payment. It can even cap a bank’s lending limit
to one entity or sector. Other corrective action that can be imposed on banks include
special audit, restructuring operations and activation of recovery plan. Banks’ promoters
can be asked to bring in new management, too. The RBI can also supersede the bank’s
board, under PCA. The PCA is applicable only to commercial banks and not extended to
co- operative banks, NBFCs.

Trigger Points for PCA :

Net NPAs over 10% but less than 15% - special drive to reduce NPAs and contain
generation of fresh NPAs; review loan policy and take steps to strengthen credit appraisal
skills, follow-up of advances and suit-filed/decreed debts, put in place proper credit-risk
management policies; reduce loan concentration; restrictions in entering new lines of
business, making dividend payments and increasing its stake in subsidiaries

Net NPAs 15% and above – In addition to actions on hitting the above trigger point,
bank’s Board is called for discussion on corrective plan of action

CRAR less than 9%, but equal or more than 6% - bank to submit capital restoration
plan; restrictions on RWA expansion, entering into new lines of business,
accessing/renewing costly deposits and CDs, and making dividend payments; order
recapitalisation; restrictions on borrowing from inter-bank market, reduction of stake in
subsidiaries, reducing its exposure to sensitive sectors like capital market, real estate or
investment in non-SLR securities, etc.

CRAR less than 6%, but equal or more than 3% - in addition to actions in hitting the
first trigger point, RBI could take steps to bring in new Management/ Board, appoint
consultants for business/ organizational restructuring, take steps to change ownership,
and also take steps to merge the bank if it fails to submit recapitalization plan.

CRAR less than 3% - in addition to actions in hitting the first and second trigger points,
more close monitoring; steps to merge/amalgamate/liquidate the bank or impose
moratorium on the bank if its CRAR does not improve beyond 3% within one year or
within such extended period as agreed to

ROA less than 0.25% - restrictions on accessing/renewing costly deposits and CDs,
entering into new lines of business, bank’s borrowings from inter-bank market, making
dividend payments and expanding its staff; steps to increase fee-based income; contain
administrative expenses; special drive to reduce NPAs and contain generation of fresh
NPAs; and restrictions on incurring any capital expenditure other than for technological
up gradation and for some emergency situations.
 Negative effects of PCA: Banks under the PCA have lost market share to private sector
banks in corporate loans and unsecured personal loans, and it will be a Herculean task
for the affected banks to claw this back. The PCA framework puts restrictions on weaker
banks on many aspects, including fresh lending and expansion, and salary hikes, among
others.

When is PCA invoked? The PCA is invoked when certain risk thresholds are breached .
There are three risk thresholds which are based on certain levels of asset quality,
profitability, capital and the like. The third such threshold, which is maximum tolerance
limit, sets net NPA at over 12% and negative return on assets for four consecutive years.

What are the types of restrictions? There are two type of restrictions, mandatory and
discretionary. Restrictions on dividend, branch expansion, directors compensation, are
mandatory while discretionary restrictions could include curbs on lending and deposit. In
the cases of two banks where PCA was invoked after the revised guidelines were issued
— IDBI Bank and UCO Bank — only mandatory restrictions were imposed. Both the
banks breached risk threshold

What will a bank do if PCA is triggered? Banks are not allowed to re new or access
costly deposits or take steps to increase their fee-based income. Banks will also have to
launch a special drive to reduce the stock of NPAs and contain generation of fresh NPAs.
They will also not be allowed to enter into new lines of business. RBI will also impose
restrictions on the bank on borrowings from inter bank market.

Impact: Small and medium enterprises will have to bear the brunt due to this move by
RBI. Since the PCA framework restricts the amount of loans banks can extend, this will
definitely put pressure on credit being made available to companies especially the
MSMEs. Large companies have access to the corporate bond market so they may not be
impacted immediately. It has been predicted that if more state-owned banks are brought
under PCA, it will impact the credit availability for the MSME segment

Topic – 28
SARFAESI – Process in Brief
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002 (SARFAESI) empowers Banks / Financial Institutions to recover its dues
through enforcement of Security Interest, without the intervention of the Court / Tribunal.

The exercise of all rights by Bank as Secured Creditor under the Act has to be done through an
Authorised Officer. As per the Security Interest (Enforcement) Rules, 2002, the Authorised Officer
is an officer of the Bank not below the rank of a Chief Manager specified by its Board of Directors

EXCEPTIONS: - SARFAESI Actions can not be initiated in the following instances.

➢ Contractual dues is below Rs.1/-lakh
➢ Security interest over Agricultural Land.
➢ Any case in which the amount due is less than 20 % of the principal amount and interest
thereon
 The Gist of the Newly Introduced Provisions of
the SARFAESI Act (24-Jan-2020)

➢ The Central Government, vide its Notification No. SO4619(E) dated 26.12.2O19, has
appointed the 24th day of January, 2O2O as the date on which Sections 17 to 19 of the
Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous
Provisions (Amendment) Act, 2016, shall come into force.

➢ The existing provision relating to registration of charge with CERSAI (Central Registry of
Securitisation Asset Reconstruction and Security Interest) within 3O days from the
date of creation, modification or satisfaction of such charge has been omitted / removed.
Even, the provision relating to registration of charge within next 30 days with payment of
additional fee has also been omitted/ removed.

➢ The provision relating to penalty for default in registering the transactions relating to
creation, modification or satisfaction of charge has also been omitted/ removed.

➢ In addition to Secured Creditors, other Creditors may also now register the particulars of
transactions, relating to creation, modification or satisfaction of any charge, with CERSAI.
Further, the Central or State Government or any local authority shall also now register the
 attachment orders, if any, passed by such authority, with CERSAI. Moreover, any person
who obtains an order of attachment of any property from any court, or other authority, in
respect of his claim against borrower, may also now register such attachment order with
CERSAI.

➢ Registration of transactions with CERSAI relating to creation, modification or satisfaction

of charge by a secured creditor (Bank) or any other creditor or filing of attachment order
shall be deemed to be a public notice from the date of filing of such particulars with
CERSAI. Further, in case the charge or attachment order w.r.t. any property has been
registered with CERSAI, the claim of “such secured creditor” or “other creditor” shall have
priority over any subsequent security interest created upon such property.

➢ In order to enforce charge under SARFAESI Act, it is now mandatory that the charge
created in favour of Secured Creditor (i.e. Bank/ Financial Institution) must be registered
with CERSAI immediately after its creation. It is pertinent to mention here that in case the
charge created by bank on any property/asset has not been registered with CERSAI, the
Bank cannot proceed under SARFAESI against such property/asset. In the meantime, if
any other Creditor (need not be a BANK) registers its charge with CERSAI w.r.t. the said
property / asset, such creditor will have priority of charge over the said property/asset and
in that event, Bank's interest would be jeopardized and, Bank will only have a subsequent
charge.

➢ Upon registration of charge with CERSAI, the dues of Secured Creditor (bank) will get
priority over all other dues and all Revenues, Taxes, Cesses and Rates payable to Central
Government, State Government or any other Local Authority. Thus, the Bank will now
have priority over all other charges, provided the bank’s charge is duly registered with
CERSAI, immediately after creation of the charge.

CERSAI
(Central Registry of Securitization Asset Reconstruction and Security Interest)

➢ Section 23 of SARFAESI Act : Particulars of any charge creating the security interest over
property is required to be filed with the registry : the timeline within 30 days from the date of
creation is omitted

Topic – 29
Digital India – 2 nd Phase
Kindly Refer To : [Link]
 Topic – 30
Sales / Marketing / Cross Selling / Up-Selling
Sales and marketing are closely interlinked and are aimed at increasing revenue. As
such marketing means generating leads or prospects. Once the product is out in the
market, it is the task of the sales person to persuade the customer to buy the product.
The most important is service after sales, i.e Customer Service is most important.
Now… not just Customer Service or Customer Satisfaction… But “Customer Delight” is
need of the hour.

Cross-selling is the action or practice of selling an additional product or service to an

existing customer. In Bank it’s selling products like Insurance / Mutual Funds to existing
customers.
Upselling is a sales technique where a seller invites the customer to purchase more
expensive items, upgrades, or other add-ons to generate more revenue. For example
Top-up loan to Home Loan borrower

Topic – 31
Reserve Bank of India
➢ Reserve Bank of India Act, 1934
➢ Roles of RBI :
• Monetary Authority
• Issuer of Currency
• Banker and Debt Manager to Government
• Banker to Banks
• Regulator of the Banking System
• Manager of Foreign Exchange
• Maintaining Financial Stability
• Regulator and Supervisor of the Payment and Settlement System
• Developmental Role
➢ Monetary & Credit Policy issued by RBI – Twice a year
➢ Fiscal Policy – Government of India
➢ To control inflation, RBI use one or more of these monetary tools – Bank Rate, CRR, SLR,
Open Market Operations, Repo & Reverse Repo and Market Stabilisation Scheme
➢ Through the Monetory Policy, RBI regulates?
• Money Supply
• Availability of Money
• Cost of Money
➢ Objective of maintaining CRR - To ensure safety and liquidity of bank deposits
➢ Cash Reserve Ratio (CRR) :- It indicates the quantum of cash that banks are required to
keep with the RBI as a portion of their Net Demand and Time Liabilities :- It should be
between 3 % to 15 %
➢ Statutory Liquidity Ratio (SLR) :- It is share of net demand and time liabilities that banks
must maintain in safe and liquid assets, such as Government Securities, Cash and Gold.
➢ Scheduled Bank :- According to Section 2(e), Scheduled Bank means a bank whose name
is written in the 2nd Schedule of RBI Act, 1934
 Topic – 32
RBI Monetory Policy 2021
What is RBI Monetary Policy 2021?
It is the policy formulated by the Reserve Bank of India in 2020 related to money matters of the
country. The policy also takes into account the distribution of credit among users as well as the rate
of interest on borrowing and lending. Since India is a developing country, the monetary policy is
significant in the promotion of economic growth. The monetary policy in India is formulated by the
Reserve Bank of India and relates to the monetary matters of the country. The policy involves
measures taken to control inflation, regulate supply of money and cost of credit in the economy.
The various instruments of monetary policy include variation in bank rates, other interest rates,
supply of currency, etc.
On 4th December 2020, RBI has kept the Repo Rate unchanged at 4.00% and reverse repo rate
at 3.35%. In addition to that, the Marginal Standing facility rate and the bank rate stands at 4.25%.
This has been done to limit the damage to the economy caused by the Covid-19 and subsequent
lockdowns.

RBI Monetary Policy Highlights

RBI Monetary Policy Highlights Key highlights of RBI monetary policy as announced on December
4, 2020, are:
➢ RBI keeps Repo Rate unchanged at 4%.
➢ Reverse repo rate also remains unchanged at 3.35%.
➢ Limit for Contactless Card increased from ₹ 2,000 to ₹ 5,000 per transaction.
➢ RTGS system to be made 24X7 in the next few days.
➢ Real GDP growth for 2021 projected at -7.5%.
➢ Criteria for NBFC dividend distribution, risk-based audit in large NBFCs & co-op banks to be
introduced.
➢ Retail inflation likely to remain elevated and pegged at 6.8 per cent for the 3rd quarter of the
current fiscal year.
➢ On-tap TLTRO to be expanded to other stressed sectors.

Objectives of Recent Monetary Policy of RBI

The main objectives of the recent monetary policy of RBI are as follows:
➢ Controlling imports and exports: Monetary policy helps industries to get a loan at a
reduced interest rate, which means they can substitute imports by export-oriented units and,
in turn, increase exports.
➢ Promotion of savings and investments: A monetary policy can impact the savings and
investment of the people. A higher rate of interest will result in greater investments and
savings, thereby maintaining a healthy cash flow within the economy.
➢ Managing business cycles: There are two main stages of a business cycle – boom and
depression. The monetary policy is one of the most efficient financial tools that can help to
control the boom and depression period of business cycles by managing credit distribution
and supply of money in the economy.
➢ Employment generation: A monetary policy can lead to reduced interest rates, which
means small and medium enterprises (SMEs) can easily secure a loan for business
expansion. This means more employment generation.
➢ Development of infrastructure: The monetary policy by RBI allows concessional funding
for the development of infrastructure within the country.
➢ Developing and managing the banking sector: The central bank is responsible for
managing the entire banking industry. RBI also instructs other banks using the monetary
policy to establish rural branches for agricultural development wherever required.
Additionally, the government has also set up cooperative and regional rural banks to help
farmers receive the financial aid they require in no time.
Monetary Policy Tools
To control inflation, the Reserve Bank of India needs to increase the cost of fund or reduce the
supply of money with the help of tools which are divided mainly into two categories – Quantitative
and Qualitative tools.
➢ Quantitative tools : These tools impact the money supply in the economy, including sectors
such as manufacturing, housing, etc.
➢ Reverse Ratio : Banks keep aside a certain percentage of cash reserves or RBI approved
assets. There are two types of reserve ratio:
➢ Cash Reserve Ratio (CRR) : Banks set aside this portion in cash with the RBI. The bank
cannot lend this amount to anyone or earn a profit or interest rate on CRR.
➢ Statutory Liquidity Ratio (SLR) : This portion is set aside by the banks in the form of liquid
assets such as gold or RBI approved securities such as government securities. Banks earn
interest on these securities, but it’s very low.
➢ Open Market Operations : The RBI buys and sells government securities in the open
market, also referred to as Open Market Operations to control the supply of money.
When the RBI sells government securities, the liquidity is sucked from the market, and
buying securities provides liquidity, which helps to control inflation. The main aim of the open
market operation is to keep a check on temporary liquidity mismatches in the market, which
happens due to the inflow of foreign capital.
➢ Qualitative tools :These tools affect the money supply of a specific sector of the economy.
➢ Margin requirements : The RBI mentions a certain margin against collateral. When the RBI
raises the margin requirements, customers will be able to borrow less and vice-versa.
➢ Selective credit control : Through this method, RBI avoids lending to speculative
businesses or selective industries.
➢ Moral suasion : With the help of this tool, the central bank persuades other banks to keep
money in government securities and not in any other sectors.

Market Stabilisation Scheme (MSS)

Market Stabilisation scheme or the MSS is the instrument used by the Reserve Bank of India(RBI)
in times of excess liquidity. The scheme was brought into operation in the year 2004 to control the
surge of US dollars in the Indian market. The RBI uses this technique to repair the excess liquidity
prevailing in the market due to the issuance of securities on Government’s behalf like Treasury bills
or Dated securities. The fund that the RBI raises under the MSS scheme is kept in a separate
account from the Government account and is not used by the RBI to fund the regular expenditures.
This separate account is called the MSS account. To manage the excess liquidity, the RBI issues
securities under the MSS, which are called the MSS Bonds or the Market Stabilisation
Bonds(MSBs). The various financial institutions further purchase these bonds in the country, and
the funds earned by the selling of these bonds is Reserve Bank of India.

Monetary Policy Transmission

Monetary policy transmission is the course of action, wherein the monetary policy decisions taken
by the RBI such as the change in the repo rate, are implemented throughout the financial market,
and especially in the banking sector. The monetary policy transmission impacts the economic
conditions and activities like consumption of funds and the investments portfolio. One of the most
common examples of monetary policy transmission is the impact of the repo rate on the banking
sector. While RBI has mandated the banks to link their loan products with the external benchmark,
a number of banks like SBI, PNB, etc. have linked their retail loan products such as home loans,
LAP, etc. to the repo rate. The repo linked lending rate impacts the loan rates and makes loans
affordable for the general public since a decrease in repo rate reduces the loan rates. Thus,
monetary policy transmission brings in transparency and affordability.
What is the timeline of the RBI Monetary Policy?
The Reserve Bank of India reviews the monetary policy every two months. On December 04, 2020,
the central bank released its bi-monthly monetary policy statement for the year 2020-21.

What is the current monetary policy?

As per the current monetary policy, the repo rate stands at 4.00% and the reverse repo rate at
3.35%. The marginal standing facility (MSF) rate and the Bank Rate stand at 4.25%.

What are the current rates of RBI?

The current rates as per RBI Monetary Policy are:
• CRR is 3%
• SLR is 18%
• Repo rate is 4.00%
• Reverse Repo rate is 3.35%
• Bank rate is 4.25%
• MSF rate is 4.25%

What is CRR and SLR?

Cash reserve ratio, as stipulated by RBI, is the minimum ratio of total deposits received by the bank
that has to be kept in the form of cash.

At the end of each business day, every bank is required to maintain a portion of their Net Demand
and Time Liabilities in the form of liquid assets like cash or gold. The ratio between these
maintained liquid assets and liabilities is called Statutory Liquidity Ratio.

Can I take a loan from the RBI?

RBI is the regulating authority of all Banks. Just like people borrow funds from Banks, similarly,
Banks borrow funds from the Reserve Bank of India. The interest rate at which the banks borrow
funds from RBI is called the repo rate. The Reserve Bank of India made it compulsory for banks to
lend loans at the repo linked lending rate by setting it as an external benchmark. Banks now
offer repo rate linked home loan interest rates.

Topic – 33
BoB – Digital Lending Platform
(For details kindly refer to :- BCC:BR:112:656 Dt. 17.11.2020)
 Topic – 34
Credit Guarantee Scheme for Subordinate Debt (CGSSD)
Purpose
To provide personal loan to the promoters of stressed MSMEs for infusion as equity / quasi equity
in the business eligible for restructuring, as per RBI/Bank's guidelines for restructuring of stressed
MSME advances.

Eligible Borrowers
➢ The Scheme is applicable for those MSMEs whose accounts have been standard as on
31.03.2018 and have been in regular operations, either as standard accounts, or as NPA
accounts during financial year 2018-19 and financial year 2019-20.
➢ Personal loan will be provided to the promoters of the MSME units. The MSME itself may be
Proprietorship, Partnership, Private Limited Company or Registered Company etc.
➢ The Scheme is valid for MSME units which are stressed, viz. SMA-2 and NPA accounts as
on 30.04.2020, who are eligible for restructuring as per RBI guidelines on the books of the
Lending institutions.

Facility Type
Personal Loan : Term Loan

Loan Amount
➢ Promoter(s) of the MSME unit will be given loan equal to 15 % of his/her stake (equity plus
debt) or Rs 75 lakh whichever is lower as per last audited balance sheet
➢ This loan shall not exceed the original debt of the beneficiary MSME Unit
➢ This sub debt loan is given along with restructuring of the main facility only.

Tenor and Repayment

Maximum up to 10 Years (Door To Door) with maximum moratorium of 7 Years.

Collateral Security:
The loans would be covered under credit guarantee by the CGTMSE upto 90% and remaining 10%
is to be secured by collateral security from the promoter Borrower.
 Topic – 35
Change in the Definition of MSME wef [Link].2020

If an enterprises crosses the ceiling limits specified for its present category in either of the two
criteria of investment or turnover, it will cease to exist in that category and be placed in the
next higher category but no enterprise shall be placed in the lower category unless it goes
below the ceiling limits specified for its present category in both the criteria of investment
as well as turnover.

Need for Change of MSME Definition

➢ No change in investment limits since 2006
➢ Substantial increase in investment in select sectors to comply with the new mandatory
industrial standards
➢ The investment based definition created an uneven field for older enterprises Vis a Vis new
enterprises and created barrier for new entrants
➢ Enterprises were killing their urge to grow due to low threshold limit
 Topic – 36
Aatma Nirbhar Bharat Abhiyaan
➢ Atmanirbhar Bharat, which translates to 'self-reliant India' or 'self-
sufficient India', is a policy, the term is coined by Prime Minister of India,
Narendra Modi for making India "a bigger and more important part of the
global economy", pursuing policies that are efficient, competitive and resilient,
and being self-sustaining and self-generating.

➢ Atmanirbhar Bharat doesn't mean "self-containment", "isolating away from

the world" or being "protectionist".

➢ The first mention of this came in the form of the 'Atmanirbhar Bharat
Abhiyan' or 'Self- Reliant India Mission' during the announcement of
India's COVID–19 pandemic related economic package on 12 May 2020.

➢ Subsequently, two more Atmanirbhar Bharat packages were announced on

12 October and 12 November 2020, bringing the total economic stimulus to
Rs.29.87 lakh crore.

Three Atmanirbhar Bharat packages:

A total of three Atmanirbhar Bharat packages worth Rs.29.87 lakh crore (US$420
billion) were announced by the government:
➢ On 12 May 2020, the Prime Minister announced an overall economic
package worth Rs.20 lakh crore.
➢ On 12 October 2020, the government announced Rs.73,000 crore worth
economic stimulus package, labeled as Atmanirbhar Bharat Abhiyan 2.0.
➢ On 12 November 2020, the government announced Rs.2.65 lakh crore
worth economic stimulus package, labelled as Atmanirbhar Bharat
Abhiyan 3.0.

As part of the Atmanirbhar Bharat package, numerous government decisions have

taken place such as
• changing the definition of MSMEs,
• boosting scope for private participation in numerous sectors,
• increasing FDI in the defence sector; and
• the vision has found support in many sectors such as the solar manufacturers sector.

Slogans initiated under Atmanirbhar Bharat include 'vocal for local', 'local for
global' and 'make for world”.

Other Initiatives :
Examples of initiatives towards self-reliance:
➢ The growth of India's personal protective equipment (PPE) sector from zero before
March, to 4,50,000 pieces a day by the beginning of July, is considered as a fine
example of a self-reliant India. The PPE industry in India has become a Rs.10,000
crore in three months, the second largest after China.
➢ The largest fund in the country worth Rs.21,000 crore was setup by the IIT Alumni
Council with the aim of supporting the mission towards self-reliance.
 ➢ India's own 'Made in India' 5G network was announced in July 2020 by Reliance
[Link] Ambani announced in mid-July "Jio has created a complete 5G
solution from scratch, that will enable us to launch a world-class 5G service in
India, using 100 per cent homegrown technologies and solutions".
➢ In September 2020, Tech Mahindra announced that they have "the capability to
build and run an entire 4G or 5G network in India [...] We have done that already."
➢ In August 2020, the Defence Minister Rajnath Singh announced that the
Defence Ministry is "now ready for a big push to Atmanirbhar Bharat initiative"
by imposing an "import embargo on 101 items" in a staged manner over a
period of 5 years.
➢ The Defence Production and Export Promotion Policy (DPEPP 2020) and
Defence Acquisition Procedure 2020 (DAP) also aims towards self
reliance.[28]
➢ Minister of Chemicals and Fertilisers, D V Sadananda Gowda , in September 2020,
said that "India will be self-reliant in fertiliser production by 2023".
➢ Coir Udyami Yojana aims to develop the coir-related industry’s sustainable
development

For details – Kindly refer to

[Link]
nirbhar-bharat-abhiyaan

Topic – 37
One Nation One Card
Rupay National Common Mobility Card (NCMC)
• First of its kind of Debit cum Prepaid card.
• Domestic usage only.
• Daily cash withdrawal is Rs. 50,000.
• Daily withdrawal Frequency - 10.
• Daily POS/ECOM limit Rs. 1,00,000.
• Contactless transaction up to Rs. 2,000.
• Maximum per transaction limit of Rs 2,000 for offline purchase.
Other Benefits
• Supports both offline (contactless) & online (Contact & contactless) transactions.
• his advanced and secured card can be used for all payment applications, including transport
(Metro, Bus etc.), toll, shopping, ATM, POS, etc.
• Prepaid Wallet Contactless transactions limit-
• Maximum per transaction limit for money add transaction is Rs. 500.
• Maximum daily limit for money add transaction is Rs. 2,000.
• No. of money add transactions allowed per day is 4.
• Maximum balance in card (stored value) at any point is Rs. 2,000.
• Maximum per transaction limit for card for offline purchase is Rs. 2,000.
• Maximum daily limit for card for no. of offline purchase transactions is 20.
 Topic – 38
Whatsapp Banking – New Digital Delivery Channel
For details kindly refer to :- HO:BR:112:468 Dt. 21.12.2020

Topic – 39
Measures Taken by RBI During COVID Pandemic
(Resolution / Rehabilitation of MSMEs)

❑ Reserve Bank of India has announced certain regulatory measures to mitigate the
burden of debt on the account of COVID-19.
❑ All Term Loans (including Agricultural Term Loans, Retail, Crop Loans and Cash
Credit/Overdraft are eligible to avail the benefits under the package. This is
available to all such accounts, which are Standard Assets as on 1st March 2020.
The original repayment period for Term Loans will get extended by 3 months e.g. a
loan repayable in 60 installments maturing on 1st March 2025 will mature on 1st
June 2025.
❑ For working capital-the recovery of Interest applied to Cash Credit/Overdraft on 31st
March, 30th April and 31st May 2020 is being ‘deferred’. However, the accumulated
accrued interest shall be recovered immediately after the completion of the
moratorium period.
❑ Impact of this relief:
Any delay in payment leads to default and gets reported to Credit Bureaus. For
business loans of Rs. 5 Crores and above, the Banks report the overdue position to
RBI also through CRILC. As a result of this relief package, the overdue payments
post 1st March 2020 will not be reported to Credit Bureaus/ CRILC for three months.
No penal interest or charges will bepayable to the Banks. Similarly, SEBI has allowed
that Credit Rating Agencies (CRAs) may not consider the delay as default by listed
companies if the same is owing to lockdown conditions arising due to Covid-19.
 ❑ The measures stipulated by RBI under the March 27, 2020 circular on COVID 19
Regulatory Package will not be treated as “Restructuring” and hence will not result in
asset classification downgrade. Accordingly, the enhanced provisions for
Restructured Accounts will not apply.

One Time Restructuring of MSME Accounts

Eligibility Cutoff : Borrowers having aggregate exposure, including non-fund based
facilities of banks and NBFCs upto Rs 25 Crore as on 01-March-2020 are eligible

IRAC Status : IRAC (Income Recognition & Asset Classification) status should be
Standard including SMA as on 01-March-2020. Borrower’s account was a “Standard
Asset” as on 01-March-2020 and also the accounts which may have slipped into
NPA Category between 02-March-2020 and date of implementation may be
upgraded as “Standard Asset”, as on the date of implementation of the Restructuring
Plan.

A Provision of 5% in addition to the provisions already held, shall be made in respect

of accounts restructured under these instructions

Time Line : The restructuring of the borrower account eligible under these guidelines
is to be implemented by 31-March-2021

GST Requirements : The borrowing entity is GST registered on the date of

implementation of the restructuring. However, this condition will not apply to MSMEs
that are exempt from GST registration. This shall be determined on the basis of
exemption limit obtaining as on 01-March-2020

Topic – 40
Standardized Public Grievances Redressal System (SPGRS)
Siebel CRM Complaint module replaced the existing SPGRS System for Complaint
Management across the organization. This application enables end users to lodge all categories of
complaints through various channels and resolve and track the same. Complaint can be lodged
through Website/ Branches/ Regions/ Other Resolver Groups and Contact Centre. Salient features
of Siebel CRM SPGRS module includes availability of Customer Data for Complaint management,
Domain ID and Password based login, Access to Contact Centre for lodging complaints, Complaint
Bounce, Seek Clarification, Audit Trail of complaints and tracking to name a few.

In Complaint Module of SIEBEL CRM application following user profiles have been created
depending on the roles and responsibilities. They are Branch User, Regional Office User, Zonal
Office User, Department User, HO (Head Office) User, Contact Centre User and IO (Internal
Ombudsman)
 Topic – 41
Right to Information Act, 2005
An Act to provide for setting out the practical regime of right to information for citizens to secure
access to information under the control of public authorities, in order to promote transparency and
accountability in the working of every public authority, the constitution of a Central Information
Commission and State Information Commissions and for matters connected therewith or incidental
thereto.
Office Public Information Officer First Appellate Authority
Region Regional Head Zonal Head
Head Office DGM – Operations General Manager - HO
BCC General Manager - BCC Executive Director
Second Appeal / Complaint - Central Information Commission

➢ On receipt of application : PIO / Appellate Authority – reply within 30 Days

➢ Appeal to FAA – within 30 Days from the receipt of the reply from Appellate Authority
➢ Second Appeal to CIC within 90 days

Topic – 42
PM SVANidhi Scheme
(a special micro credit facility for street vendors)

Facility Type
Fund Based- Working Capital Demand Loan (WCDL).

Purpose
The scheme is a Central Sector Scheme i.e. fully funded by Ministry of Housing and Urban Affairs
(MoHUA) with the following objectives:
➢ To facilitate working capital loan up to Rs. 10,000/- per street vendor
➢ To reward digital transactions (cash back upto maximum of Rs.1200.00)

Loan Amount
Upto Rs. 10,000/- per vendor
Tenor and Repayment
Maximum up to 12 months, Repayable in 12 EMI starting from one month after disbursement.

Topic – 43
Foundation Course for PSB Employees
For details kindly refer to :-
[Link]
 Topic – 44
SHGs – Post Covid
Kindly Refer To
[Link]
movement/

Topic – 45
LC Mechanism
 Topic – 46
PM – KUSUM
(Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) scheme)
The KUSUM scheme would provide additional income to farmers, by giving them the option to sell
additional power to the grid, through solar power projects set up on their barren lands.

If implemented well, the PM-KUSUM scheme can be the ultimate game-changer for energy security
and the rural economy in India.

Component of the PM-KUSUM

PM-KUSUM consists of three components and aims to add a solar capacity of 30.8 GW by 2022:

➢ Component-A: 10,000 MW of decentralised ground-mounted grid-connected renewable

power plants
➢ Component-B: Installation of two million standalone solar-powered agriculture pumps
➢ Component-C: Solarisation of 1.5 million grid-connected solar-powered agriculture pumps.

Topic – 47
Agriculture Infrastructure Fund
The Union Cabinet in July 2020 has approved a new pan India Central Sector Scheme called
Agriculture Infrastructure Fund. The scheme shall provide a medium - long term debt financing
facility for investment in viable projects for post-harvest management Infrastructure and community
farming assets through interest subvention and financial support.

The duration of the Scheme shall be from FY2020 to FY2029 (10 years).

Beneficiaries: Under the scheme, Rs. One Lakh Crore will be provided by banks and financial
institutions as loans to Primary Agricultural Credit Societies (PACS), Marketing Cooperative
Societies, Farmer Producers Organizations (FPOs), Self Help Group (SHG), Farmers, Joint Liability
Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Startups, Aggregation
Infrastructure Providers and Central/State agency or Local Body sponsored Public Private
Partnership Project.

Benefits

• All loans under this financing facility will have interest subvention of 3% per annum up to a
limit of Rs. 2 crore. This subvention will be available for a maximum period of seven years.
• Further, credit guarantee coverage will be available for eligible borrowers from this financing
facility under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
scheme for a loan up to Rs. 2 crore. The fee for this coverage will be paid by the
Government.
• In case of FPOs the credit guarantee may be availed from the facility created under FPO
promotion scheme of Department of Agriculture, Cooperation & Farmers Welfare (DACFW).
• Moratorium for repayment under this financing facility may vary subject to minimum of 6
months and maximum of 2 years.
 Topic – 48
Branch Profit – Maximisation
➢ Increase Loan Portfolio – Interest Income Increases
➢ Increase Investment (HO Level) - Interest Income Increases
➢ Increase low cost deposit viz CASA (How to Increase CASA…?)
➢ Increase - Fee based income (Commission, Exchange, Brokerage)
➢ Increase Non Interest Income (Forex Income, Trading Gains, TWO Recovery)
➢ Selling of Wealth Management Products – Earn Commission
➢ Increase Government business – Earn Commission
➢ Encourage Digital Products – Reduce Expenditure
➢ Cost Cut Methods / Reduce Operating Expenses
➢ If NPA branch – Get NPA / Writeoff Subsidy, if applicable
➢ Reduce staff strength for branch, if required

Topic – 49
White Label ATM (Vs) Brown Label ATM

White Label ATM Brown Label ATM

ATMs are owned and operated by non-bank Banks outsourced the ATM operations to a third
entities but they are not doing “Outsourcing party
Contract” from a particular bank
The private company owns & operates the ATM Same
machine, pays office rent, negotiate with
landlord, electricity company, telecom company
and so on.
Sponsor bank provides the cash The bank (which has outsourced this work)
provides cash for that ATM
No. White label ATM doesn’t have any such ATM has logo of that bank (which has
logo. Not even of the sponsor bank. outsourced this work)
They have to compulsorily open a few ATMs in No such compulsion
Tier-3 to Tier-6 areas
RBI directly involved because these white label RBI not involved directly. These outsourcing
companies have to separately get licence from companies have contractual obligations with
RBI to run business their respective banks.

For further clarification…refer : [Link]

different-from-other-atms/

Topic – 50
Covid & Indian Economy
Refer various News Articles Including
[Link]
lockdown-7113477/
 Topic – 51
Role of the Regional Manager
The Regional Manager is responsible for the administration and efficient operation of managing all
branches within his or her assigned region, including operations, lending, product sales, customer
service, and security & safety in accordance with the Bank’s objectives.

The duties and responsibilities of the Regional Manager includes…

➢ To provide strong overall leadership and planning of activities/initiatives to a designated Branch

Managers of the region, designed to achieve long term business growth and profitability
➢ Manages and builds a sales and service culture throughout the region - Developing staff capability
➢ Enabling the achievement of increased market acceptance and Product penetration.
➢ Development and delivery of overall strategy, marketplace, innovation and cultural development.
➢ Directs and oversees the formulation and implementation of approved business plans, operating
plans, budgets and capital expenditure
➢ Responsible for meeting with Branches regularly including performance reviews with Managers and
meeting with staff directly to discuss their own performance and ambitions and to discuss progress
and barriers to performance success in order to manage outcomes.
➢ Responsible for identifying and developing career path opportunities for staff within and outside
branches.
➢ Overall responsibility for effective training and development for staff in this region.
➢ Overall responsibility for identifying and developing talent with the region.
➢ Ensures staff within the region meet legislative responsibilities in their day-to-day operations,
including compliance with all relevant Acts while also ensuring that industry bench mark standards
for staff security are maintained.

Role of the Deputy Regional Manager

Deputy Regional Managers usually work for or assist a Regional Manager (DGM). They take over
when the DGM is not available and share in their responsibilities.
They help to motivate staff, handle administrative duties, and perform human resource tasks, such
as training and assessing staff performance.

A Deputy Regional Manager usually performs many of the following tasks:

➢ Implementing business procedures
➢ Assisting Regional Managers
➢ Controlling cost or expenditure
➢ Maintain quality standards
➢ Training employees
➢ Budgeting
➢ Preparing reports
➢ Attending meetings
➢ Head of different committees
➢ Giving presentations
 Leadership Qualities

1) Honesty and Integrity - The supreme quality of leadership is unquestionably integrity

2) Self Confidence
3) Inspire Others - If your actions inspire others to dream more, learn more, do more and
become more, you are a leader
4) Commitment and Passion
5) Good Communicator
6) Decision-Making Capabilities
7) Accountability - A good leader takes little more than his share of the blame and little
less than his share of the credit
8) Delegation and Empowerment - Innovation distinguishes between a leader and a
follower
9) Creativity and Innovation - Innovation distinguishes between a leader and a
follower
10) Empathy

Sussessful Regional Head Qualities / Leaderhip Qualities

Few important qualities of the successful Regional Head are as follows…

➢ Leadership : In order to be an effective RH, you need to be able to lead your employees in
an efficient manner
➢ Reliability : A RH, who is leading a team has to be reliable. This means being available for
your employees, getting things done that you said you would, and supporting your team
however needed.
➢ Respect for Employees : If you don’t respect your employees, there will definitely be tension
in your workplace. Be cognizant of their time and abilities, be able to listen and communicate
with them, and be a resource of knowledge and guidance.
➢ Orientation towards results
➢ Assertiveness - A Positive Attitude
➢ Prioritization
➢ Delegation
➢ Communication : Being able to communicate with your team is required when being an
effective RH.
➢ Empathy
➢ Integrity / Honesty
➢ Knowledgeable
➢ Organization : If you aren’t organized in your position, there’s a good chance that the
employees you manage won’t be either
➢ Confidence : To be a successful RH, you need to be confident in your abilities, experience,
and decisions.
➢ Time Management
 Topic – 52
Covid Related Measures By Our Bank

COVID RELARED MEASURES BY THE BANK:

RURAL AND AGRI:

Retail:

Resolution Framework in respect of COVID-19 related stress to Personal Segment Loans

MSME Banking:
 Topic – 53
BOB Guaranteed Emergency Credit Line Scheme (BGECLS)
Facility Type
Fund Based- Additional Working Capital Term Loan

Validity of Scheme
Scheme was valid upto 30/11/2020. Now it has been extended up to 31/03/2021

Eligibility
The eligibility criteria under the Scheme are as under:
➢ All MSME borrower accounts with combined outstanding loans across all Banks/FIs/NBFCs
up to Rs. 50 crore as on 29.2.2020, and annual turnover of up to Rs. 250 crore in FY 2019-
[Link] the turnover criteria is removed.
➢ The Scheme is valid only for existing customers on the books of the Bank
➢ Borrower accounts should be classified as Regular, SMA-0 or SMA-1 as on 29.2.2020.
Accounts classified as NPA or SMA-2 as on 29.2.2020 will not be eligible under the Scheme.
➢ The MSME borrower must be GST registered in all cases where such registration is
mandatory. This condition will not apply to MSMEs that are not required to obtain GST
registration.

Loan Amount
➢ The amount of Loan would be up to 20% of total outstanding loans from all
Banks/FIs/NBFCs as on 29th February, 2020 subject to maximum of Rs.10.00 Crs.
➢ Total Outstanding Amount would comprise of the on-balance sheet exposure such as
outstanding amount across WC loans, term loans and WCTL loans. Off-balance sheet and
non-fund based exposures will be excluded.

Tenor and Repayment

➢ The tenor of loans provided under this scheme shall be 04 years from the date of
disbursement, including a moratorium period of 1 year for principal amount.

Topic – 54
Bank of Baroda : E-Lobby
E-lobby is a place where automated banking is done without any manual intervention; it is designed
in a unique way to create a brand image of the bank and to accommodate 5 different machines
which makes banking easy for the customers 24 X 7. Currently we have more than 340 e-lobbies
operational across India. Details of the machine installed in Baroda E-lobby are as follows:

Cash Recycler
➢ Customers can Deposit as well as withdraw cash from this machine
➢ The daily limit for depositing cash without card is Rs.20,000/- and with card maximum
amount is Rs.2,00,000/- ,however it is restricted to Rs.49,999 if the customers PAN no is not
updated in the account.
➢ Customer has the facility of deposit and withdraws cash 24x7 through the machine installed
in elobby.
 ATM Machine
➢ Customer can withdraw cash from this machine 24x7
➢ Customer can register for mobile banking from this machine
➢ Customer can obtain Balance and Mini Statement from this
➢ In selected machines some of the utility bill payment can also be done

Multifunction Kiosk (MFK)

➢ Cheque deposit facility with the help of Cheque Truncation System (CTS) and UV scanning
facility- Integration with CTS server to paste the images in CTS server on frequently basis to
reduce the process time.
➢ Internet Banking with limited functions ( Icon based / Web based)
• Balance enquiry, Mini statement
• Fund transfer –Within bank / outside bank using NEFT of Internet banking
• Bill payment facility for utility bills (Post Paid, mobile ,telephone, electricity, water
• Recharge / top up of Mobile, DTH)

➢ Bill payment can be through debit card or net banking with provision for screen based entry-
Integration with Switch for payment with debit card.
➢ Non-financial transaction (Balance enquiry, Mini statement etc.) execution using debit card
authentication
➢ Informational services like IFSC code, Branch locator, product Information with capturing the
detail of the customer and integration with bank’s CMS to generate outbound services
through CSOs etc.

Self Service Passbook Printer (SSPBP)

➢ It is an automated kiosk where in customer can print there passbook on their own.
➢ SSPBP kiosk recognizes the account details from the magnetic strip placed on the
Passbook, through these details kiosk fetches the account transaction and prints it on
passbook.
➢ Customer can use this facility 24x7 from the SSPBP machine installed in e-lobby.

Digital Signage System (DSS)

Digital Signage Systems will help in promoting and increasing awareness of bank’s products.
These systems will include a LED screen and media player. The content for these LEDs
would be distributed electronically from a server installed at our Data Centre. Currently we
would be installing these systems at 400 locations across India.
 Topic – 55
Loan Lifecycle Processing System (LLPS)

➢ Loan Life Cycle Processing System (LLPS)

➢ In LLPS – No physical movement of document
➢ Its linked to HRMS, so, DLP changes automatically
➢ All circular get updated on real time basis
➢ It guides for deviation automatically
➢ LLPS links with Finacle
➢ In second phase – Access will be given to DSA, Valuer, Advocate
[Work to DSA, Valuer, Advocate – based on their previous records & not
assigned to single advocate or valuer… to avoid bias]

Topic – 56
New System Offering / Work From Home
[Link]

BoB – First PSB to eye on Permanent WFH option

[Link]
of-baroda-first-psb-to-eye-permanent-wfh-
option/articleshow/[Link]
 Topic – 57
Stand-Up India / Start-Up India
 Topic – 58
BASEL - III
Basel II Norms primarly focus on Three Pillars to manage risks viz
Pillar-1 : Capital Adequacy
Pillar-2 : Supervisory Review
Pillar-3 : Market Disipline

Basel III (or the Third Basel Accord or Basel Standards) is a global, voluntary regulatory
framework on bank capital adequacy, stress testing, and market liquidity risk. This third installment
of the Basel Accords (see Basel I, Basel II) was developed in response to the deficiencies
in financial regulation revealed by the financial crisis of 2007–08. It is intended to strengthen
bank capital requirements by increasing bank liquidity and decreasing bank leverage.

Basel III was agreed upon by the members of the Basel Committee on Banking Supervision in
November 2010, and was scheduled to be introduced from 2013 until 2015; however,
implementation was extended repeatedly to 31 March 2019 and then again until 1 January 2022.

The Basel III standard aims to strengthen the requirements from the Basel II standard on bank's
minimum capital ratios. In addition, it introduces requirements on liquid asset holdings and funding
stability, thereby seeking to mitigate the risk of a run on the bank.
 Topic – 59
Consortium / Syndication / Multiple Banking
 Topic – 60
EASE – 3.0 : For Tech Enabled Banking
Context:
FM Nirmala Sitharaman launched Ease 3.0 for tech-enabled banking in Feb’2020.
This move is expected to change the customer’s experience at the Public Sector Banks
(PSBs).

What is it?
Ease (Enhanced Access and Service Excellence) 3.0 reform agenda aims at providing
smart, tech-enabled public sector banking for aspiring India.
New features that customers of public sector banks may experience under EASE 3.0
reforms agenda include facilities like:
1. Palm Banking for “End-to-end digital delivery of financial service”.
2. “Banking on Go” via EASE banking outlets at frequently visited spots like malls,
stations, complexes, and campuses.

The idea behind EASE 3.0 agenda:

The Ministry has the idea of establishing paperless and digitally-enabled banking at places
where people visit the most.
The government aims to focus on digitalization in the Public Sector Banks (PSBs) among
themes that include responsible banking, PSBs as Udyami Mitra, customer respo nsiveness,
credit take-off, and deep financial inclusions.

Pictorially Explained :
Background:
PSB Reforms EASE Agenda is a common reform agenda for PSBs aimed at
institutionalizing clean and smart banking.
It was launched in January 2018, and the subsequent edition of the program ― EASE 2.0
built on the foundation laid in EASE 1.0 and furthered the progress on reforms.
In EASE 2.0, the government had proposed pushing liquidity in the public sector
banks, reconstituting the management committee and possible mergers among the
ideal partners in the Indian banking sector.

[EASE - Enhanced Access and Service Excellence - Based on the recommendations made
by PSB Whole Time Directors and Senior Executives in “PSB Manthan” in Nov’ 2017]
(Responsive & Responsible PSBs Banking Reforms Roadmap for a New India)
[EASE has Six Themes]
Theme – 1 : Customer Responsiveness: EASE for customer comfort
Our Bank Initiative :
• Banking from the comfort of home through Net Banking, M Connect Plus
• Grievance redressal through Online Complaint Management System
called SPGRS (Standardized Public Grievance Redressal System)
• Comfort to Senior citizens and the differently abled through new initiative
called “Door Step Banking”
• Simplification of forms
• Pleasing ambience of branch

Theme – 2 : Responsible Banking: Financial stability, governance for ensuring outcomes,

and EASE for clean & commercially prudent business
Our Bank Initiative :
• Creation of a Stressed Asset Management Vertical (SAMV) – ROSARB /
ZOSARB
• Corporate lending through rigorous due diligence
• Strict segregation of pre- and post-sanction roles & responsibilities

Theme – 3 : Credit Off-take: EASE for the borrower and proactive delivery of credit
Our Bank Initiative :
• EASE for the borrower and Proactive reach-out to borrowers., through
products viz… Pre-Approved limit to Liability Customers, Pre-Approved
Loan to Home Loan Borrowers, Pre-Approved Loan against Property to
Current Account Customers, etc.

Theme – 4 : PSBs as UdyamiMitra: EASE of financing and bill discounting for MSMEs
Our Bank Initiative :
• Online application @[Link] and Decision within 15 days
• EASE of bill realization for MSMEs
• Single-point MSME Relationship Officer – through Relationship-led
coverage model–with a list of High Priority accounts and supported by 15
sector specific credit processing teams.

Theme – 5 : Deepening Financial Inclusion & Digitalisation

Our Bank Initiative :
• EASE through near-home banking, microinsurance and digitalization
viz…M Connect Plus Express, UPI App, Baroda M Pay, etc
Theme – 6 : Ensuring outcomes – HR: Developing personnel for Brand PSB
Our Bank Initiative :
• Project Parkhi: TheDevelopment Centre that will have the capability to
assess one's strong areas, aptitude for a specific type of job and the skill
gaps
• Core Values
• Life-cycle concept of training that aims to address the capability building
needs of the employees
• Change Leader Concept : Change Leaders will play an important role in
implementation of initiatives
• Baroda Anubudhi
• Baroda Gurukul App
• Creation of Centre of Excellence for Persons with Disabilities

Topic – 61
Stressed Asset Management Verticle (SAMV)
With a view to have focused attention on the recovery process at all levels, “Stressed Assets
Management Vertical (SAMV)” have been created with three levels.
1. Corporate Level
2. Zonal/Regional Level
3. Branch Level
The main objectives for creation of this structure are:
a. Focused Attention to the Recovery Process at all Levels;
b. To enable the branches to concentrate on business growth.

In this connection, following were implemented

➢ ZOSARB : All NPA / TWO / PWO accounts having o/s of Rs 5.00 Crore & above shall be
transferred from branches and ROSARB to ZOSARB of concerned Zone
➢ ROSARB : All NPA / TWO / PWO accounts having o/s of Rs 50.00 Lacs to Rs 5.00 Crore
shall be transferred from branches to ROSARB of concerned Region
➢ All other accounts with O/s below Rs 50.00 Lacs will continue with Branches
➢ SAMB : are created to deal with NCLT accounts
 Topic – 62
Impact of technology on Indian Banking Business
Introduction : The banking industry has implemented information technology for improving
different areas like customer services and CRM, managing its operation, house-keeping,
monitoring and controlling, risk management, managing its human resource etc. The transformation
in banking services is providing various advantages to customers with anytime, anywhere access
to their accounts as well as power to operate their accounts.

➢ Automated Teller Machines

Cash withdrawals
Details of most recent balance of account
Mini statement
Statement ordering facility
Deposit facility
Payments to third parties.

➢ Remote Banking Services

Balance enquiry
Statement ordering
Funds transfer (payment) to third parties
Funds transfer between customer’s different accounts
Order traveler’s cheques and other financial instruments.

➢ Internet Banking
➢ Mobile Banking
➢ ASBA
➢ Benefits - To the Individuals :
• Anytime / Anywhere Banking
• Online purchase
• Receive – relevant & detailed information in seconds
➢ To the Merchants, Traders etc. :
• Assured immediate settlement and payment to the various transactions made by the
traders.
• Avoid all the cost and risk problems involved in handling cash
• Other benefits include improved image, improved customer service, eliminating
paper, reduced waiting costs and increased flexibility.
➢ To the Banks
• E-banking provides competitive advantage with unlimited network to the banks.
• Online banking – an effectiveness medium of \promotion of various schemes of
the bank, and indeed acts as a marketing tool.
• By connecting ATM and PO terminals, risk of over-drawl of cash can be
eliminated in case of ATM credit and debit card
➢ To the Nation
• Globalization of trade can be achieved effectively though e-banking.
• E-banking promotes more exports so that the flow of foreign exchange increases.

Conclusion : Although the change is good but still banks in India are required to address
the important issues to get the full benefits of information technology implementation.
Positive Impact of technology on Indian Banking Business
➢ The biggest revolution came in banks is Digitization.

➢ Banking process is faster than before and more reliable. Maintenance and retrieval of
documents and records have become much faster and easier.

➢ Computerized banking also improves the core banking system. With CBS (core banking
system) all branches have access to common centralized data and are interconnected.

➢ With the innovation of MICR cheque / CTS, the processing of cheques becomes more faster
and efficient h than before.

➢ Technology also leads to competition among the banks which eventually provides better
services to people.

➢ With introduction of mobile banking, one can access their bank from anywhere-anytime.
Everything is one quick tap away.

➢ To facilitate better services, Banks have introduced Automated Banking Services

Solution like Cash Deposit Machine, Cheque Deposit Machine, Passbook Printing Machine -
through these… service have become easier.

➢ It offered more transparency in transactions.

Negative Impact of technology on

Indian Banking Business
➢ The biggest negative impact of technology is loss of Jobs as automation has replaced
number of jobs in banking sector.

➢ Through technology comes the threat of Cyber Attack, a loophole in the system, millions of
data can be lost in the blink of an eye.

➢ These technologies consumes less time, it also sometimes makes people careless work
culture
 Topic – 63
Corporate Governance
Corporate governance is the combination of rules, processes or laws by which businesses are
operated, regulated or controlled. The term encompasses the internal and external factors that
affect the interests of a company’s stakeholders, including shareholders, customers, suppliers,
government regulators and management. The board of directors is responsible for creating the
framework for corporate governance that best aligns business conduct with objectives.

Specific processes that can be outlined in corporate governance include action plans, performance
measurement, disclosure practices, executive compensation decisions, dividend policies,
procedures for reconciling conflicts of interest and explicit or implicit contracts between the
company and stakeholders.

An example of good corporate governance is a well-defined and enforced structure that works for
the benefit of everyone concerned by ensuring that the enterprise adheres to accepted ethical
standards, best practices and formal laws. Alternatively, bad corporate governance is seen as
poorly-structured, ambiguous and noncompliant, which could damage the image or financial health
of a business.

Principles of corporate governance

While corporate governance structure may vary, most organizations incorporate the following key
elements:

➢ All shareholders should be treated equally and fairly. Part of this is making sure
shareholders are aware of their rights and how to exercise them.

➢ Legal, contractual and social obligations to non-shareholder stakeholders must be upheld.

This includes always communicating pertinent information to employees, investors,
vendors and members of the community.

➢ The board of directors must maintain a commitment to ensure accountability, fairness,

diversity and transparency within corporate governance. Board members must also possess
the adequate skills necessary to review management practices.

➢ Organizations should define a code of conduct for board members and executives, only
appointing new individuals if they meet that standard.

➢ All corporate governance policies and procedures should be transparent or disclosed to

relevant stakeholders.
 Topic – 64
CGTMSE
(Credit Guarantee Fund Trust Scheme for Micro & Small Enterprises)

Eligibility:
New and existing Micro and Small Enterprises engaged in manufacturing or service
activity, satisfying the criteria specified in MSMED Act 2006 with effective ROI on the
Credit facility shall not be more than RBI guidelines but excluding Educational Institutions,
Agriculture, Self Help Groups (SHGs), Training Institutions etc.

Credit facilities above Rs.50 lakh and up to Rs.200 lakh will have to be rated internally
and should be of investment grade.

For loans above Rs 5.00 Lacs to be covered under CGTMSE, PAN card is mandatory

Retail Trade Limit :

Credit Exposure should be minimum Rs.0.00 and maximum of Rs.100 lakh per MSE
borrower.
Limit Other than Retail Trade:
• Maximum Rs.200 lakh per borrower with partial collateral security and without third
party guarantees

Not to be regarded as Third Party:

• Proprietorship or Partnership - personal guarantee of Proprietor/partner

• Company - Personal guarantee of Director

Primary security:
• Asset created out of the credit facility or directly associated with the business / project.
• Collateral security: Any other security which is not created out of the credit facility

Hybrid Security:
• Guarantee cover for the portion of credit facility not covered by collateral security up
to a maximum of Rs.200 lakh for fresh credit facilities sanctioned on or after April
01, [Link] will, however, have second charge on the collateral security
provided by the borrower for the credit facility.

Tenure:
• Term Loan / Demand Loan: Repayment Period
• Working Capital: 5 years
• Composite Limit: Repayment Period of Term Loan
 Topic – 65
Present Norms : Priority Sector Lending
The targets & sub-target set under priority sector lending for domestic banks operating
in India are given below:

Domestic scheduled commercial Foreign banks with less

Categories banks and foreign banks with than 20 branches
20 branches and above
40 per cent of
40 per cent of Adjusted Net Bank ANBC (as computed
Total Credit [computation of ANBC is below) or CEOBE
Priority given below] or Credit whichever is higher; out of
Sector Equivalent Amount of Off- which up to 32% can be
Balance Sheet Exposure, in the form of lending to
whichever is higher. Exports and not less
than 8% can be to any
other priority sector
18 per cent of ANBC or
Credit Equivalent Amount of
Off-Balance Sheet Exposure,
Agriculture whichever is higher. Not applicable
Out of which a target of 10
percent# is prescribed for
Small and Marginal Farmers
(SMFs).
7.5 percent of ANBC or Credit
Micro Equivalent Amount of Off- Not applicable
Enterprises Balance Sheet Exposure,
whichever is higher
Advances 12 percent# of ANBC or
to Weaker Credit Equivalent Amount
Sections Not applicable
of Off-Balance Sheet
Exposure, whichever is higher

# Revised targets for weaker sections will be implemented in a phased manner as

indicated
below
Financial Small and Marginal Weaker Sections
Year Farmer Target target
2020-21 8% 10%
2021-22 9% 11%
2022-23 9.5% 11.5%
2023-24 10% 12%
 DIFFERENT COMPONENTS OF PRIORITY SECTOR AND WEAKER SECTION

As per the extant guidelines, under Priority Sector, there are following categories of
advances.

i. Agriculture
ii. Micro, Small and Medium Enterprises
iii. Export Credit
iv. Education
v. Housing
vi. Social Infrastructure
vii. Renewable Energy
viii. Others

The criteria for classification of various advances under the above broad categories
are explained hereunder:

Agriculture :
The lending to agriculture sector will include
(i) Farm Credit (Agriculture and Allied Activities),
(ii) Agriculture Infrastructure
(iii) Ancillary Activities

Education
Loans to individuals for educational purposes, including vocational courses, not
exceeding Rs. 20 lakh will be considered as eligible for priority sector
classification. Loans currently classified as priority sector will continue till
maturity.

Housing
i. Loans to individuals up to Rs. 35 lakh in metropolitan centres (with population of
ten lakh and above) and loans up to Rs. 25 lakh in other centres for
purchase/construction of a dwelling unit per family provided the overall cost of
the dwelling unit in the metropolitan centre and at other centres does not
exceed Rs. 45 lakh and Rs. 30 lakh, respectively.
ii. Loans up to Rs.10 lakh in metropolitan centres and up to Rs. 6 lakh in other
centres for repairs to damaged dwelling units conforming to the overall cost of
the dwelling unit as prescribed above.

Ancillary Activities
i) Loans up to Rs. 50 crore to Start-ups, as per definition of Ministry of Commerce
and Industry, Govt. of India that are engaged in agriculture and allied services.
ii) Loans for Food and Agro-processing up to an aggregate sanctioned limit of Rs.
100 crore per borrower from the banking system (single Bank – 50 Crore)
 Topic – 66
How to increase the Income of Farmers by 2022
➢ The Prime Minister’s vision of doubling farmers income by 2022
➢ This not only improve the well being of our farmers but also trigger to boost agri-based
manufacturing growth in rural India.
➢ The focus must shift from increasing per acre productivity to gainfully employing farm households in
other farm-related activities.
➢ A sudden withdrawal of subsidies will hurt the farmers, but creating industrial units in rural areas will
create jobs
➢ Goat rearing
➢ Poultry
➢ Honey production
➢ Value addition to crops
➢ Bio-fuel
➢ Increase in productivity of crops
➢ Increase in production of livestock
➢ Improvement in efficiency of input use (cost saving)
➢ Increase in crop intensity
➢ Diversification towards high value crops
➢ Improved price realization by farmers
➢ Shift of cultivators to non-farm jobs
➢ Development initiatives including infrastructure
➢ Technology
➢ Policies
➢ Institutional mechanisms

Topic – 67
Important Digital Banking Products / Campaigns of Our Bank
➢ Baroda Connect :- HO:BR:111:109 Dt. 04.05.2019

➢ Baroda M Connect Plus :- HO:BR:111:35 Dt. 14.02.2019 & BCC:BR:111:574 Dt. 01.11.2019

➢ UPI 2.0 :- HO:BR:112:351 Dt. 29.08.2020 & HO:BR:113:15 Dt. 18.01.2021

➢ Baroda Paypoint : HO:BR:112:346 Dt. 19.08.2020

➢ Digital Dangal Campaign : HO:BR:113:8 Dt. 11.01.2021

➢ Digital Sakthi Campaign : BCC:BR:113:43 Dt. 19.01.2021

 Topic – 68
Artificial Intelligence - will shape banking in future
➢ Almost all banks offer similar products
➢ Banking become commoditization
➢ biggest differentiator for banks today is customer experience
➢ Customers are choosing a bank based on factors such as Customer Service, ease of navigation
and quality of issue resolution; rather than products / interest rate.
➢ customers have become more demanding than ever before
➢ They look for instant gratification, especially the millennials – they expect a high quality of
interaction and seek super quick resolution of any requests. As banking becomes more digital,
delivering the best experience online becomes a challenge.
➢ The answer to addressing these issues lies in Artificial Intelligence (AI). The banking industry has
already acknowledged the importance of AI in banking
➢ AI will revolutionize banking, both in terms of customer interaction and information gathering in
following ways…
• Faster and More Efficient Customer Service
• Enhancing customer experience – analyse customer behaviour
• Personalized Experience
• Operational Efficiency
• Targeted Marketing and New Revenue Streams
• Safety and Security
• Fraud Detection
• Improved business operations and risk management

Topic – 69
BRITE
[Rewards & Recognition : (BRITE) Baroda Reward for
Individual and Team Excellence]
Objectives:
➢ To promote & encourage employees to accomplish Bank goals while building personal excellence
➢ Deeply engrain Bank’s core values in the individuals by rewarding exemplary demonstration
➢ Instil team building and collaboration in the Bank by rewarding victories achieved
by teams

Overview
The nature of the Reward & Recognition programs and targeted behaviors are:
➢ Team recognition program: Elite Club to recognize teams for exceptional performance & achievement
as a team.
➢ Individual recognition program: Core Values Club to recognize individuals for exemplary
demonstration of bank's core values.
 Topic – 70
Internal Audit & Its Types
Audit Transformation & Its Impact
Risk Based Internal Audit (RBIA)
Under the present model called RCM (Risk Control Matrix), the branches are rated based on the below
parameters :-
➢ Business Risk – Max Marks 500
Under Business Risk the following parameters are accessed…
• Credit Risk
• Earnings Risk
• Liquidity Risk
• Business & Environment Risk
• Operational Risk

➢ Control Risk – Max Marks 500

Under Control Risk the following parameters are accessed…
• Operational Control Risk
• Credit Control Risk
• Compliance Risk
• IT Risk
➢ Total Max Marks – 1000

Business Performance Risk is removed from the current audit rating model as they are mostly
structured around achievement of budgets by the branchesand such risks may be looked at by the
Controllers of the Branches.

An important change is scoring separately for Operational & Credit Risk. Now we will have separate
Control Risk scores for Operational & Credit Risk. In managing of Compliance & IT Risk the role of
Corporate/ Zonal offices is much higher and the scores for the same has been scaled down.

Under the present model, the branches are categorized into following 3 categories
Category Branches Credit Portfolio
I All Corporate and SME Intensive Branches More than INR 200 Crores
II High Value Retail Branches 200 Crores to 50 Crores
III Other Branches 50 Crores and below

RCM is based on sampling & sampling is done as follows…

1. Fresh sanction & review with incease : 100%
2. Outstanding balance more than Rs.25.00 lacs and above : 100%
3. Outstandinf balance rs.10.00 lacs to rs.25.00 lacs : 50%
4. Outstanding balance rs.1.00 lacs to rs.10.00 lacs : 35%
5. Outstandinf balance below rs.1.00 lacs : 10%
Risk Category of Branches are
➢ Low Risk
➢ Medium Risk
➢ High Risk
➢ Very High Risk
➢ Extremely High Risk
If high risk is for two consecutive audits, then the branch will be automatically rated as Very High Risk
Branch.
Also, Compliance checking will be done in 10 % of the branches which are rated as Medium or High Risk
in the previous year.

Impact of Audit Transformation

➢ Effectiveness
➢ Fraud prevention and detection
➢ Systems and controls : The financial controls and systems, and the risk management systems of
the branches will be under proper norms.
➢ Ensure adequate coverage of the business functions by audit
➢ Ensures that audit findings are supported by adequate evidences : Under the revised model, the
auditors will be required to maintain adequate working papers / audit evidences. This is a basic
requirement under the Quality Assurance process will be oversee the audit process.
➢ Whether changes in the operating framework of the bank are being adequately taken into account
during the audit process
➢ Oversight on the auditors activity is maintained
➢ Remove Subjectivity in Rating Process : The RCMs provided have built-in formulas or guidance for
calculating the Control Risk. It is envisaged that once the Audit Workflow is automated, the rating
will come directly from the system based on test results of the samples selected for review. This will
automate the rating process and remove the subjectivity in the rating process
➢ Ensures good Leadership for the branch, who is responsible for for the long-term success of the
branch in general and Bank in particular

Periodicity of Audit
Low Risk Branches – Not covered under Concurrent Audit 12 – 15 Months
Low Risk Branches – Covered under Concurrent Audit 15 – 18 Months
Medium Risk Branches 12 Months
High Risk Branches 9 – 12 Months
Very High / Extremely High Risk Branches 9 Months
Newly Opened Branches
System & Snap Audit
Revenue Audit of Branches (Rs 20 Crore & above and case to case) 6 Months
Not Covered under Concurrent Audit
Currency Chest / SMS / SMELF / CBOs / RBOs
Income & Expenditure Audit – RO / ZO / CO / HO
Internal Audit of RO / ZO / CO / HO 12 Months
Management Audit - RO / ZO / CO / HO 36 Months

Submission of Clean Rectification Certificate

Urban / Metro / AGM Headed Branches 90 Days
Rural Branches 60 Days
 Credit Audit

Credit Audit - Exclusion

 Stock & Book Debt Audit

Other Audits
❖ Statutory Audit : Long Form Audit Report (LFAR)
❖ Revenue Audit
❖ Concurrent Audit - Based on
▪ Residual Risk (RBIA Report)
▪ Business Volume
❖ BC Audit
▪ Branches : All their BC Points – Quarterly
▪ RO : 10 % Random – Quarterly
❖ Legal Audit
▪ Rs 5 Crore & above loan accounts
▪ Once in 5 Years
 Topic – 71
Door Step Banking (DSBS - PSB Alliance)
PSB Alliance is an umbrella setup of all Public Sector Banks, jointly offering important customer oriented
services envisaged by Govt. of India under EASE of Banking reforms.
Door Step Banking is one such initiative taken by PSB Alliance through which customers can avail major
Banking transaction services at their Door Step. It shall be implemented by Door Step Banking (DSB)
agents in 100 major Centers across the Country for offering different financial as well as non financial
services.
For details kindly refer to :- BCC:BR:112:470 Dt. 11.08.2020
BCC:BR:112:726 Dt. 01.12.2020
BCC:BR:112:756 Dt. 15.12.2020

Topic – 72
Banker – Customer Relationship
Banker Customer Relationship
Debtor Creditor Bank accepts deposits from public
Creditor Debtor Bank lends to public
Bailee Bailor Delivery of goods by one person to another
Pawnee Pawnor Bailment of goods as security for payment of debt
Agent Principal Cheque clearing / Currency Chest
Lessor Lessee Locker
Indemnifier Indemnified One party promises to save the other from loss
caused to him by the contract of the promisor
himself or by the conduct of any other person
Mortgagee Mortgagor Transfer of an interest in specific immovable
property – Transfer of title deeds – Example :
Home Loan
Hypothecatee Hypothecator Hypothecation – Example : Car Loan
Topic – 73
IndAs
 Topic – 74
Cyber Security Issues in Banks and
Strategies of banks for minimizing the risk
A cyber-attack is a deliberate exploitation of computer systems, technology-dependent enterprises and
networks. Hackers (cybercriminals) use malicious code and software to alter computer code, logic, or
data, resulting in disruptive consequences that can compromise data and lead to cyber-crimes such as
financial information, healthcare record, and identity theft or system infiltration.

As per the critical information infrastructure rules framed in 2013 under the Information Technology Act,
2000, the banking, financial services and insurance (BFSI) sector is one of the most critical domains
that are prone to cyber-attacks.

Major Cyber Security Threats are…

➢ Unencrypted Data
➢ New automation technology without Security
➢ Unprotected Third Party Services
➢ Unsecured Mobile banking
➢ Ignoring a Potential Breach
➢ Money Laundering

Cyber Security – Issues - Solutions…

➢ Communication and Intelligence
➢ Scenario-based Testing
➢ Cross-industry Collaboration
➢ Implementing Blockchain Technology for Cyber Security

Cyber Security – Regulatory Initiatives

Over the years, cyber threats have emerged as a major area of concern in the financial sector,
more specifically in the context of banking operations involving critical payment system
infrastructure. Several milestones have been accomplished in the area of cyber risk management
and developing resilience to such threats. Cyber security preparedness requires continuous and
synchronous efforts from multiple stakeholders with varied levels of cyber security preparedness.

Some of the recent measures include:

a. Centralisation of regulatory and supervisory functions related to cyber security aspects for
all supervised entities with the CSITE (Cyber Security and IT Risk) Group of the
Department of Supervision, RBI (a comprehensive cyber security framework for UCBs was
issued in December 2019 wherein controls were mandated on the basis of digital depth
adopted by the UCBs).
 b. Mandating base lines requirements for critical service providers to the payment system of
the banking sector through the RBI-regulated entities - to start with, instructions were issued
mandating baseline cyber security controls for third-party ATM applications switch service
providers.

The banking industry is a target of choice for cyber-attacks. In the post COVID-19 lockdown, there
has been an increased incidence of cyber threats. In order to ensure that unconventional, remote
working conditions necessitated by the lockdown and adoption of other practices/procedures do
not lead to a relaxation of existing cyber security and data protection controls in supervised
entities, the RBI has taken several measures. On March 11, 2020, when WHO declared COVID-
19 a pandemic, the RBI issued an advisory on March 13, 2020 to all its regulated/supervised
entities to inter alia ensure that access to systems is secure and critical services to customers
operate without disruption. Since March 2020, the RBI issued more than 10 advisories/alerts to
supervised entities on various cyber threats and best practices to be adopted. Some of them were
issued in close coordination with Indian Computer Emergency Response Team (CERT-In). A series
of video conference meetings were conducted in May 2020 regarding cyber security
preparedness and broad cyber/IT threats in order to proactively sensitise the top managements of
supervised entities.

For the financial sector, on a proactive basis, CERT-In is tracking latest cyber threats,
analysing threat intelligence from multiple sources and issuing advisories and automated alerts to
the Chief Information Security Officers (CISOs) encompassing relevant details so that the financial
entities may develop a set of effective practices for responding to and recovery from cyber
incidents, while enhancing their respective cyber resilience. CERT-In is enabling the finance sector
to deal with cyber attacks by conducting workshops as well as dedicated cyber security exercises
and joint cyber security exercises with RBI and IDRBT. CERT- In has carried out 13 exercises for
the financial sector till date.

Cyber Alert from CERT-In

For details kindly refer to :- BCC:BR:112:423 Dt. 20.07.2020
 Topic – 75
Financial Inclusion in India : Why Not Happened
Financial Inclusion is defined as “the process of ensuring access tofinancial services and timely and
adequate credit where needed by vulnerable groups such as weaker sections and low income groups at
an affordable cost” (Rangarajan, 2008) in the report of the Committee on financial inclusion in India

Financial inclusion is a broad term used to describe the provision of savings and loan services to the poor
in an inexpensive and navodayeasy to use form. It includes opening of bank accounts for those that have
never had one, and allowing people to send and receive money easily. The main objective is ensuring
access to formal credit for people who depend on informal means for their financial needs and also
financial education to ensure that the poor and marginalised make the best use of their money.

Problems / Reasons for not happening :

There are a number of reasons for exclusion. In remote, hilly and sparsely populated areas with poor
infrastructure, physical access hinders inclusion efforts. From the demand side, lack of awareness, low
incomes/assets, social exclusion, and illiteracy mainly stand as barriers. Among the supply side factors
distance from branch, branch timings, complicated documentation and procedures, unsuitable products,
language, staff attitudes are common reasons for exclusion.

➢ Distance continues to be a major issue, though BCs have started to provide succor in certain
regions.
➢ Navigating the Procedures remains a challenge; Lack of knowledge (institutional as well as user
level);
➢ Insufficient infrastructure leading to long hours of waiting,
➢ if banks are accessible; Lack of customized products and services.
➢ In contrast informal and quasi-legal entities win on this count.
➢ Human resources of formal financial institutions unequipped to deal with challenges of FI.

Solutions for not happening :

➢ Branch Expansion in Rural Areas
➢ Business Correspondent/ Business Facilitator Model
➢ Relaxed KYC norms
➢ Use of Technology
➢ Direct Benefit Transfer
➢ Innovative product lines & processes
➢ Policy Framework
 Topic – 76

Negotiable Instrument Act, 1881

➢ Three Negotiable Instruments are ::
• Promissory Note (Section – 4)
• Bill of Exchange (Section – 5)
• Cheque (Section -6)
➢ Demand Draft is not a cheque but it is a Bill of Exchange
[As per RBI guidelines – DD issued above Rs 20,000/- should be affixed “Account Payee” seal]
[Fraudulent Draft presented and paid – Paying banker has to lodge complaint]
➢ Holder (Section – 8) :
➢ Holder in Due Course (Section – 9) :
➢ Three Difference - Between : Holder and Holder-in-due-Course
• Lawful Consideration
• Before Maturity
• Good Faith
➢ Payment in Due Course (Section – 10) :
“Payment in due course" means payment in accordance with the apparent tenor of the instrument
in good faith and without negligence to any person in possession thereof under circumstances
which do not afford a reasonable ground for believing that he is not entitled to receive payment of
the amount therein mentioned.
Payment after business hours is not a payment in due course. Hence Bank is liable under Section
10 of NI Act if payment made after business hours
➢ Section – 10, 85 & 128 :: Protection to Paying Banker
➢ Section – 131 :: Protection to Collecting Banker
➢ Section – 138 :: Dishonour of cheques for insufficiency etc of funds in the account.
 Topic – 77
Zero Tolerance Area of our Bank

Sr. Parameter
1 Non compliance of KYC norms in newly opened accounts
Non compliance of guidelines in handling of PINs and Debit
2
Cards
3 Status of signature scanning
4 All security forms to be entered in Finacle
Generation, checking and filing of Exceptional Transaction
5
Reports.
Generation, checking and filing of Inter SOL Transaction
6
Reports.
7 Generation, checking and filing of OFFSOL Txn Report
8 PSR submission by the branch
9 Display of BCSBI code in the branch premises
Generation of CIBIL / EQUIFAX report before any advance’s
10
sanction
11 Registration of all mortgages through CERSAI
Availability of Ultra Violet Ray machine.
12 The same is in working condition
It is being used as per extant guidelines
Generation, Checking and
13 Signing of Change of Mobile
Number Report from BOBMENU
Adherence to Four Eye Principle
14 InFinacle Transaction
In Advance Accounts
Attending and Rectifications of CEMU Alerts by
15
the branches
 Topic – 78
Core Values & Its Importance
The Core Values attempts to set forth the guiding principles on which the Bank shall operate and conduct
its daily business with its multitudinous stakeholders, government and regulatory agencies, media, and
anyone else with whom it is connected. It recognises that-the Bank is a trustee and custodian of public
money and in order to fulfil its fiduciary obligations and responsibilities, it has to maintain and continue to
enjoy the trust and confidence of public at large.

Our Core Values :

➢ Integrity – We are ethical and transparent in our words, actions, and dealings with all stakeholders

➢ Courage – We are resilient in the face of adversity and having faith in our beliefs

➢ Excellence – We strive for continous improvement in our policies, systems and processes

➢ Passionate Ownership – We display energy, enthusiasm, and commitment towards our bank and we work
together for the bank

➢ Innovation – We create value through new ideas

➢ Customer Centricity – Our customer interests lie at the core of all our actions

Importance of Core Values

➢ Many companies focus mostly on the technical competencies but often forget what are the
underlying competencies that make their companies run smoothly — core values
➢ Core values are what support the vision, shape the culture and reflect what the company values
➢ They are the essence of the company’s identity – the principles, beliefs or philosophy of values
➢ Establishing strong core values provides both internal and external advantages to the company
➢ Accountability – Acknowledging and assuming responsibility for actions, products, decisions, and
policies. It can be applied to both individual accountability on the part of employees and
accountability of the company as a whole
➢ Balance – Taking a proactive stand to create and maintain a healthy work-life balance for workers
➢ Commitment – Committing to great product, service, and other initiatives that impact lives within
and outside the organization.
➢ Community –Contributing to society and demonstrating corporate social responsibility
➢ Diversity – respecting the diversity and giving the best of composition. Establishing an employee
equity program
➢ Empowerment – Encouraging employees to take initiative and give the best. Adopting an error-
embracing environment to empower employees to lead and make decisions
➢ Innovation – Pursuing new creative ideas that have the potential to change the world
➢ Integrity – Acting with honesty and honor without compromising the truth
➢ Ownership – Taking care of the company and customers as they were one’s own
➢ Safety – ensuring the health and safety of employees and going beyond the legal requirements to
provide an accident-free workplace.
 Topic – 79
Project Sparsh and Sparsh Plus
Project Sparsh- Human Touch for Business Excellence

Project SPARSH a focused HR project, has been undertaken by Bank engaging services of
―TheBostonConsulting Group (BCG) to revamp our HR processes, structures and policies and to create
an integratedHR framework.

Under Project SPARSH, bank has covered:

➢ Manpower
➢ Training and development
➢ Incentives to staff
➢ Talent management and
➢ Performance management.

A few of the initiatives taken by bank under the project SPARSH

➢ Inauguration of HR shared services pilot back office at Baroda (HRCPC)

➢ Bank’s career portal
➢ On-boarding scheme for newly recruited officers
➢ Employee’s survey
➢ Baroda Academy

Project Sparsh Plus

On 06.05.2017 Bank of Baroda has unveiled HR transformationproject christened as Project Sparsh
Plus, for enhancing the Performance Management &Talent Effectiveness in our Bank.

Hence a new digital PMS (Performance ManagementSystem) is launched as GEMS: BARODA

GROWTH & EMPOWERMENT MANAGEMENTSYSTEM.

New PMS system will be more scientific than existing APAR system &key benefitsof GEMS are:
a) Result Oriented
b) Objectivity & Rationality
c) Empowerment
d) Recognition of High Performance
 Baroda GEMS – Advantages & Points for Improvement
The new Performance Management System (PMS) - launched - known as BARODA GEMS- Baroda
Growth & Empower Management System.

➢ GEMS Rating – AA., A., BBB., BB., B

The objectives of introducing Baroda Gems are as under:

1- Laying down a more Scientific & Robust Target Setting Process.
2- Ensuring greater clarity of roles & expectations
3- Better measurement of actual performance based on scientific & data backed
processes
4- Empowering the officers through regular developmental feedback
5- Strengthening our rewards & recognition programmes
6- Ensuring greater transparency & objectivity in the entire process

The four key pillars under Baroda – GEMS :

1) Result Orientation
2) Objectivity and Rationality
3) Empowerment
4) Recognition of High Performance

GEMS - Advantages – For Organisation

➢ Improved organizational performance
➢ Employee retention and loyalty
➢ Improved productivity
➢ Overcoming the barriers to communication
➢ Clear accountabilities
➢ Saves time and reduces conflicts,
➢ Ensures efficiency and consistency in performance.

GEMS - Advantages – For Employees

➢ Clarifies expectations of the employees
➢ Self assessment opportunities
➢ Clarifies the job accountabilities
➢ Contributes to improved performance
➢ Clearly defines career paths and promotes job satisfaction
➢ Employee performance – Well documented

GEMS – Scope for Improvement

➢ Cohort system should be waved off – considering geographical and demographical reasons
➢ Training requirements of the employees has to be fullfilled based on the results of the GEMS
➢ GEMS should diagnose - individual and branch / organizational competencies.
➢ GEMS has to strengthen the relationship between the superior and the subordinate.
 Topic – 80
Baroda Gurukul – Features & Suggestions for Improvement
Baroda Academy has launched new learning management system “Baroda Gurukul”.

In the process, our existing e-learning platform i.e. “Baroda Net Academy” is now discontinued and
replaced with new system called Baroda Gurukul. It is designed to provide different user experience,
increased accessibility and optimized utilization.

System will facilitate learning through pull rather than push approach.

It provides tools and features to maintain stringent and continual process of competency gap analysis,
training need assessment and impact measurement tools.

Salient features of Gurukul are as under…

➢ Single sign on for ease of login (Domain ID and password)
➢ E-Learning Course Launch, Rating and review
➢ Virtual Classroom or Webinar
➢ Live Baroda radio – Every Friday 4.30 pm
➢ Training calendar for upcoming class room trainings (with facility for self-nomination)
➢ Blended learning i.e. combination of e-leaning, video, documents, CLT, etc. forming onecourse
➢ Facility to conduct surveys and Announcement
➢ Online Quiz.
➢ Mobile app Availability on Android and IOS app with off-line course download
➢ Competency Mapping of employees
➢ Leader Board for learning competition
➢ Micro learning through Video Library
➢ Digital Library Facility
➢ Weekly Quiz
➢ Baroda Tube
➢ Margdarshak

Suggestions for Improvement

➢ It should be 24/7 facility and not a “after office hours” facility
➢ Removing excess image, text, and graphics
➢ Supporting complex information with graphs and charts
 Topic – 81
Project Navodaya – Steps Initiated under it
On 20.07.2016 Bank of Baroda has unveiled Project Navoday, a comprehensive transformation for the
Bank across our business strategy, products, systems and organization that is going to propel us forward
in our ambition to be India’s (Premier)International Bank with a global standing, delivering a differentiated
world class experience to our customers.

Under Project Navoday following priority areas are being undertaken:

➢ Establish long term and profitable customer relationship across businesses.

➢ Expand our corporate and international banking businesses through dedicated Relationship
Managers.
➢ Redesign processes and systems.
➢ Make our future ready.
➢ Realignment of structures across the Bank.
➢ Unleash the potentials of our people.

Bank has established a central Project Management Office (PMO) that will drive the change and send out
regular communication on the progress achieved. Additionally dedicated Change leaders are being
identified.

Every Month “Navoday Times” is published, where in all updates and changes are enshrined and a
monthly quiz is also conducted with announcement of three monthly winners.

Under “We Lead” initiative the next generation of Leaders are being developed across the Bank as under -
…

Scale Leadership interventions

I, II and III Sayaji Rao Gaekwad Scholars Program
IV Baroda Rising Stars Program
V Baroda Emerging Leadership Program
VI & VII Baroda Senior Leadership Program

Topic – 82
BoB - NOWW
Kindly refer to : [Link]
 Topic – 83
Branch 2.0 : Project Navodaya

(Pilot basis – 50 Branches selected)

Three Key Eements of Branch 2.0
➢ Mechanism to track branch progress across key transformational areas
➢ Regular and benchmarked performance monitoring and review to drive improvement across
metrics
➢ Aim to create model branches that spearhead transformation for all other branches
 Topic – 84
Bank’s Present NPA Position & Strategy for Recovery
What is NPA :-
Non-performing Assets’ (NPA) are the loans that are not repaid and are not generating any income to the
lender.

The gross Non-Performing Assets (NPAs) of public sector banks (PSBs) is in alarming situation.

Our Bank Position as on 31-Dec-2020

➢ Gross NPA (GNPA) - INR 63,182 crore
➢ GNPA ratio – 8.48 %.

Causes of NPA :- [General – Not pertaining to our Bank alone] [Views from different websites]
➢ Many loans are given to big companies without thoroughly analyzing the repaying capacity that
companies and the owners has.
➢ Around 80% of NPA are from willful defaulters.
➢ Some loans are given to the big companies that are facing losses and are about to shut down.
This can be attributed to corruption and nepotism.
➢ Banks are not yet free from government and political influence. Some politicians are using their
power to grant loans to undeserved business persons.
➢ Without conducting field study and relying completely on project report is another cause.
➢ After granting loans, banks are not observing how the loans are spent. Many willful defaulters
are spending the loans unproductively which will not help to grow business in anyway. For
example, DCHL took many loans from many banks and spent the loan amount by investing in
IPL, buying luxury cars, granting bonuses etc.
➢ To grant huge loans, banks form as a consortium and a big bank among them leads it. Small
banks blindly follow big bank in granting loans that company. If that big bank take wrong
decision, small banks will suffer.
➢ Some companies are taking loans but are not able to finish their projects. As a result, the lender
bank is giving more loans to it to finish the project in the hope that they can recover their
previous loan. But in many cases, this is further aggravating the NPA problem.
➢ Till 2016, there were no strict laws to recover NPAs.

Impact of NPA :-
➢ NPA are weighing down the banking system. Many banks do not have enough money to grant
new loans, which is a blow to the way of income to the banks.
➢ To help banks, government is investing more money on banks with tax payers money. In 2016-
17, government allotted Rs. 25,000 crore to banks and thereafter amount increases.
➢ Banks coming under PCA, which stipulates Mandatory & discretionary restrictions on banks.
Strategies to reduce NPA :-
➢ Recovery through Compromise / Lokadalat, SARFAESI, DRT, IBC, Suit File, etc.
➢ Creating ‘Stressed Asset Recovery Bank‘ and transferring NPAs to it. In this way NPAs will be
cleared for banks on papers. This method is useful to resolve the stress in the banking system.
➢ The immediate solution is to sell Non performing assets. From April 2017, banks are selling
more NPAs.
➢ Among all defaulters, the top 20 companies created more than Rs. 2.00 lakh crore NPAs. If
banks concentrate on these major defaulters, government may not have to rescue banks.
➢ Banks should thoroughly inspect the company they are giving loans to. Loans to bad companies
will lead to lack of money for good investments.
➢ It’s better to display the defaulters’ name list publicly. This will cause fear and acts as a
deterrent.
➢ After granting loan, banks should observe the capacity of the company continuously and should
be able to assess whether it is about to bankrupt. In this way, banks can sell the assets before
the loans become NPA.

Appropriation of Recoveries in
NPA / Written Off Accounts
1). In respect of Non-Suit Filed Accounts :
➢ Firstly, towards all costs, commissions, charges and expenses paid or incurred
and to be paid or incurred by the bank.
➢ Secondly, towards interest, additional interest, further interest, penal interest
due to the bank
➢ Lastly, towards payment of the principal money

2). In respect of Suit Filed Accounts and Decreed Accounts

➢ As per the directives of concered court
➢ In the absence of specific directives from the court, as applicable to Non-Suit
Filed Accounts.

Topic – 85
Baroda e Trade 3-in-1 Online Trading
 Topic – 86
Launch of MDRT-2020 by our Bank
 Topic – 87
GST – Boon or Bane
Goods & Services Act was enacted in 2016 and came into effect from 01.07.2017.

Features:
➢ GST would be applicable on “supply” of goods or services as against the present concept
of tax on the manufacture of goods or on sale of goods or on provision of services. Four
slabs have been defined 5%,12%,18%,28%. It would be applicable to all products except
liquor for human consumption. First time SIN goods have been defined by the tax
authorities.
➢ GST would be based on the principle of destination based consumption taxation as
against the present principle of origin-based taxation
➢ It would be a dual GST with the Centre and the States simultaneously levying it on a
common base. The GST to be levied by the Centre would be called Central GST (central
tax- CGST) and that to be levied by the States [including Union territories with legislature]
would be called State GST (state tax SGST). Union territories without legislature would
levy Union territory GST (union territory tax- UTGST).
➢ An Integrated GST (integrated tax- IGST) would be levied on inter-State supply (including
stock transfers) of goods or services. This would be collected by the Centre so that the
credit chain is not disrupted.

Advantages

• GST is expected to build a more transparent and corruption-free tax system in India.
• It is easy to start a business in the post-GST regime and tax regulations are easier than before.
• Composition mechanism is there to reduce the tax burden from small businesses and startups.
• More simplified movement of goods and/or services between states and within the country.
• GST is calculated on the total amount, irrespective of the type of sales and services.
• GST has eliminated the cascading effect of taxes by introducing a unified tax system.
• Since it is a destination based tax, the tax will only be paid by the consumer upon delivery of
goods/services.
• The implementation of Goods & Services tax puts India in the line of international tax standards,
making it easier for Indian businesses to sell in the global market.
• Inflation is expected to stay under control after the implementation of GST.
• GST is expected to reduce the price of production, operational and others costs that will benefit the
end consumers.
• Since all the records and data are now available on a single platform, it has become easier for the
tax authorities to identify and deal with tax evasions.
• One major benefit of GST is that the government is now receiving more taxpayer registrations than
ever before.
Dis-Advantages

• GST compliance and tax filing has increased the implementation cost for businesses, as they are
required to invest in computers, accounting (GST) software and/or trained GST experts (CAs and
accounting experts).
• The process of GST compliance is also proving daunting as most businesses are not yet fully
aware of the rules, provisions and processes of the new tax system, including the process of return
filing, GST registration, returns filing schedule, invoicing and billing, etc.
• The overall cost of doing business is going to increase, at least in the first few months of GST.
• The tax relaxation limit for small manufacturing businesses, which was 1.50 crores earlier, is now
Rs. 40 lakh under the GST system (Service industry – 20 lakh). This has effectively increased the
tax burden for such businesses.
• No clarification about tax holidays has further increased operation costs for textile, pharma and
other manufacturing industries.
• The tax rate has been increased for many products, thus increasing their costs.
• The cost of refurbishing has increased due to increased tax, thus increasing the price of
refurbished products.
• Businesses are required to have separate registrations for multiple business entities in different
states. It will increase the burden of tax compliance.
• GST has reduced the tax revenue of some states as they are now required to share revenues with
the central government.
• The tax will be paid by the end consumer, which makes it a non-consumer-friendly tax system.
Conclusion
The GST has both its pros and cons, and it is expected to bring a positive change in the tax system of
India. For now, we should hope for the best.

Topic – 88
FINTECH – Is it Disrupters for Banking Business
In this age of transparency and digitization, Fintech firms and start-ups have been the major gainers. They
are also emerging as strong players in the financial sector by offering personalised and transparent offers
to the customers. By weakening the loyalty of established customer base, these newly emerged Fintech
firms are giving hard time to traditional banks.

With Tech giants like Amazon, Flipkart and WeChat venturing into finance sector, it clearly indicates that
they are doing everything in their capacity to be in the limelight always. On the other hand banks are
suffering due to their non-flexible boundaries.

While there exists a serious rivalry between the two, collaboration is also being perceived as an option for
mutual benefit. But before this brand new “Banking + Fintech” financial ecosystem attains immense
importance, it is imperative to understand its pro’s and con’s.
Pros / Advantages:-

➢ Improved Profitability:‘The Fintech revolution’ is being understood as the reason for the
termination of legacy banks. Thus now it is essential for the existing traditional banks to
comprehend these firms as partners rather than follies. This will not only enhance the overall
profitability of the banks but also improve their degrading performance in the recent years.

➢ Benefits of data enrichment:Data enrichment is an innovative way through which the Fintech
firms use machine-learning engines to add value to the plethora of existing data of customers
acquired from millions of transactions. This will surely help the banks to not only identify particular
customers but also in maintaining them.

➢ Next wave of tech generation:With the foray of Tech giants in finance, the new wave of tech
generation has arrived. But full benefits can be reaped when these new technologies reach the
other major participant of this sector. Thus the bank and tech alliance will not only reduce costs but
also increase efficiency of the banks, due to superior technical know-how abilities.

➢ Benefits of portfolio diversification: With their expertise in giving importance to particular

customer needs, the Fintech firms will help banks to diversify their loan portfolio as now the
customers will be provided what they want.

➢ Increased customer awareness: The EY FinTech Adoption Index 2017 has stated that the
percentage of people aware about FinTech facilities in 2017 has risen to 84% as compared to 62%
in 2015. Thus in a such a scenario it is absolutely beneficial for the banks to merge in these small
scale Fintech startups and deliver greater value to their customers.

Disadvantages / Cons

➢ Huge costs: One of the primary concern of a bank is its costs such security cost, compliance
costs, auditing expenditure. These costs will only increase with such collaboration on account of
provision of secure network and complex structure of a FinTech firms operations.

➢ Complexity in dealing with customers: Due to a nexus of financial data resulting from data
enrichment, the dealing with customers and other organization will be difficult and time
consuming.

➢ Reluctance of Banks: Banks are reluctant to alter their already well-established tech system
which will hinder the efficiency due to dissimilarity in the Tech architecture.

Conclusion :-
The Bank and FinTech collaboration is deemed to be beneficial in enhancing the efficiency of finance
sector due to the advanced technologies of the Tech organisations and with the advantage of the
established customer base of large banks. But there are still some stones left unturned on account of
expenditures and the complexity possessed.
 Bank of Baroda – Fintech : Initiative
SME & Large Corporate

➢ Digital Seller Financing : Collaboration with Amazon to offer collateral-free working capital loan to
over 2 Lac sellers on the latter's platform.

➢ Alternate Data Based Underwriting : Tie-up with CreditMantri for technology that helps Bank to
draw data of our SME merchants and assess the customers on the strength of personal and
business data points.

➢ Vehicle Financing : Bank of Baroda partnered with UBER, to finance individuals desirous of
owning a vehicle and attaching it to UBER's platform. This initiative is promoting "Start up India"
Scheme by plummeting entry barrier to financing and fostering drivers to become entrepreneurs.

➢ GST Enabled Accounting Solution : Tie-up arrangement with Versify to offer their ready built
GST enabled accounting software as 3rd party product to our customers on monthly subscription
basis.

➢ Bankability Kit : Bank of Baroda has partnered with SIDBI for mentoring and supporting the MSE
ecosystem. A bankability kit is designed enabling MSEs to evolve as bankable entities. This kit
features different themes ‘Know Enterprising Self ’, ‘Know your Banker’ and ‘Know Banking’.
➢ MoU with SIDBI : Bank of Baroda signed a MoU with SIDBI with the objective of working together
to strengthen credit delivery system and facilitate smooth flow of credit to the MSMEs and Startups
in a hassle-free manner.
➢ Information-as-a-Service : Collaboration with Probe42 to obtain information on listed/un-listed
companies from a number of sources, including the ROC, defaulter's lists, public filing, etc.
available on demand for lending and gaining new business.

➢ TReDS: Online Discounting Platform : Bank of Baroda has on boarded all 3 RBI approved Trade
Receivables Discounting System (TReDS) platforms i.e. [Link], RXIL, MYNDSOL thereby
becoming the first Bank to support this novel Fintech initiative. This online platform enables
discounting of invoices of MSME sellers through a bidding process to ensure prompt realisation of
receivables.

Retail

➢ Housing Loan :
Partnership with Deal4loans for generation of housing loan leads through their platform.

Bank of Baroda has tied up with Switchme for targeting existing housing loan borrowers
who are looking to switch lenders to take advantage of lower interest rates.
➢ Education Loan
Tie-up arrangement with Gyandhan and Eduloans to source mortgage backed Education loan
applications for overseas studies.

Wealth Management

➢ Baroda M-Invest : Bank of Baroda partnered with Fisdom to launch Baroda M-Invest app in the
market for the customers. The app blends cutting edge technology with personalized financial
advice for investing in mutual funds.

Technology
➢ Truecaller payment : Bank of Baroda Partnered with Truecaller (Software Scandinavia AB,
which is a privately held company in Stockholm, Sweden) for offering UPI payment services of
BHIM Baroda Pay UPI app to users on their app (Truecaller Pay app which resides under its parent
app) via secured API gateway. With this tie-up users of any bank can link their bank account on
Truecaller Pay for payments, such as Utility Bill Payment, P2P funds transfer, payment via QR
code, request payment and check balances.
➢ Sound Based Payment : Bank of Baroda partnered with ToneTag for contactless proximity
communication using sound wave. The app SDK is integrated with Bank of Baroda’s M-Connect
Plus mobile banking application for making payment on ToneTag enabled POS terminals.

➢ Payment Gateway : Collaboration with Razorpay, a payment gateway with the aim to revolutionize
online payments by providing clean, developer-friendly APls and hassle-free integration.

➢ Blockchain : Bank of Baroda is founding member in two major Blockchain communities to explore,
build and implement blockchain solutions in a collaborative environment. BankChain community
has total 37 member banks across the globe, which is managed by Primechain Technologies
Pvt. Ltd. Another community which is managed by EdgeVerve Pvt. Ltd having nine major Indian
banks in it. The communities were formed with an objective to enable banks to minimize fraud and
maximize efficiency, security and transparency. Bank of Baroda is experimenting with around 10
interesting use-cases on Blockchain.

➢ Baroda Finathon Challenge : Bank had introduced “Baroda Finathon Challenge”, a hackathon
contest, inviting the techies, developers, students and start-ups to come up with exciting,
innovative, novel and viable solutions themes such as Innovation, Customer Acquisition, Customer
Experience, Conversational Banking, Collections, Compliance and Operational Efficiency. The
challenge successfully concluded by sifting out the most innovative solutions out of 4,600 teams.
On 26th Feb, the Finale was conducted in Mumbai to adjudge 3 winners amongst 8 shortlisted
teams.
 Fin-Agritech
➢ Post-Harvest Finance : Bank of Baroda signed MOU with Allfresh Supply Management Pvt Ltd
for extending finance to the farmers against pledge of warehouse receipts issued by the company.

➢ Greenhouse-in-Box : Collaborated with Kheyti Tech Pvt Ltd to finance the Greenhouse-in-Box
(GIB). Company offers services like inputs, training and market linkage creating a seamless path
for steady income.
➢ Farm Machinery on Rent : Partnership with EM3 to provide finance for farm machinery & farm
implements to be given on rent. EM3 offers its services on a Pay-for-Use basis for every step of the
farming process – from soil preparation to harvest.

➢ Mobile Based Information : Tie-up with RML Agtech Pvt Ltd to provide mobile based information
to the farmers.

➢ High Quality Inputs : Bank of Baroda partnered with Lawrencedale Agro Processing India Pvt
Ltd (LEAF) for providing access to farmers to high quality inputs.

Publication

➢ FinTalk : ‘FinTalk’ is a daily Newsletter which has all relevant news pertaining to the Fintech sector
and events that affect the Fintech space.
➢ Collections: Collections is a Special Edition of our daily fintech newsletter FinTalk marking the top
15 FinTalk themes from over 200 digests published in 2017. This will provide a great way to revisit
the trends and developments of Fintech space.

Topic – 89
Strategies to Improve Various Portfolios
Priority Sector / Agriculture / SME / Retail / Corporate
➢ Every bank should train a band of senior- and middle-level employees in the art of lending to the
_____ sectorand they should continue to be encouraged to upgrade
their skills in the latest developments in that area of lending.

➢ Instead of making available ____ lending facilities in all branches, every bank should set up
specialised branches in all potential centres and extend ____ lending through these branches
alone where trained manpower should be deployed to facilitate proper sanction and monitoring of
these loans and advances.

➢ RBI should come out with an incentive-based system to encourage lending to the ____ sector, as
an incentivised system will receive better receptivity at all levels, and this will provide the necessary
thrust to _____ lending by banks.
➢ The staff working in those specialised branches lending to the ____ sector can be provided with
appropriate incentives based on the level of lending to the ___ sector at each of these branches.

➢ A certain percentage of profit can be exempted from income-tax for those banks reaching these
levels of lending to the ___ sector.

➢ Any other incentive could be thought of to provide impetus for lending to the ____ sector.

➢ All subsidies now provided to banks for lending to ____ sectors should be withdrawn, and in its
place, appropriate fiscal incentives should be provided so as to minimise paperwork and misuse of
the subsidy system.

➢ In order to encourage the staff of commercial banks to improve lending to the ____ sector, the bank
managements, particularly in the public sector, should also change their attitude and follow the
basic principle followed by banks all over the world that “error of judgment is not negligence”. All
loans granted by the branch managers should be viewed from this angle and appropriate
protection has to be provided to the operating staff when loans go bad due to reasons beyond
their control. This will give the required comfort to staff at all levels and radically change their
attitude towards ____ lending and help the banks to do a better job in this area of banking.

➢ The ____ community in our country requires a lot of counseling and the bank officers engaged in
this activity should be trained in this art of providing advice and counsel whenever needed and
consider the requests of the borrowers with a humane touch.

➢ To Reduce Credit Risk in Lending, Empower Staff Members Beyond Performing Cash Flow
Analysis and Towards Real Customer Relationship Building and Management

➢ TAT should be reduced both in letter and spirit

➢ Functional collaboration has to be increased

➢ Cultivate centers of influence as referral sources. One of the most effective ways to learn about
new lending opportunities and get introductions to potentially qualified borrowers is to cultivate
relationships with accountants, attorneys, insurance agents and brokers, and other service
providers in your community.

➢ Increase community involvement and visibility

➢ Cultivate cross-sell opportunities. One of the easiest and most steady sources of new business
and related revenue is to reach out to current customers for additional business.

➢ Target the customers of your troubled competitors. Another strategy to help grow your portfolio
is to pick off a competitor’s disgruntled customers. Chances are there’s at least one troubled bank
in your market area that is unwilling or unable to meet many of its customers’ financing needs.
 Topic – 90
Bank of Baroda : Smart Banking Service
 Topic – 91
Bank of Baroda : Fast Tag
National Highways Authority of India (NHAI) & Indian Highways Management Company Limited (IHMCL)
have authorized NPCI for providing a composite solution on Electronic Toll Collection.

The Baroda FASTag is a simple & reusable tag based on Radio-Frequency IDentification Technology
(RFID) that will be affixed on a vehicle’s windscreen. Each tag is linked to a prepaid account maintained at
Bank end to facilitate instant automatic deduction of toll charges.

Bank of Baroda issues prepaid RFID tags to customers which can be recharged. Once Tags are affixed
on vehicle that vehicle can pass through ETC (Electronic Toll Collection) lane at Toll Plazas without
stopping and Toll charges will be automatically deducted from the account linked to Tag.

➢ The customer will save time and will not have to stop at Toll Plazas for Toll payment which will
reduce congestion.
➢ Cashback of 2.5% for FY 2019-20
➢ Transactions at Toll Plazas will be digitized
➢ FASTag mandatory for all new vehicals from Catagories
• M (motor vehicles with atleast four wheels designed and constructed for the carriage of
passengers)
• N (Motor vehicles with atleast four wheels designed and constructed for the carriage of
goods) manufactured or sold, post December 1, 2017

Key Benefits to Customers

➢ Convenience of cashless payment.
➢ Near non-stop motion & reduced commute time.
➢ Cash back of 2.5% for FY – 2019-20
➢ Online recharge available through card, Internet Banking & UPI.
 Topic – 92
TReDS
Full form of TReDS : Trade Receivables Discounting System (This online platform enables discounting
of invoices of MSME sellers through a bidding process to ensure prompt realisation of receivables)

What is TReDS?
The scheme for setting up and operating the institutional mechanism for facilitating the financing of trade
receivables of MSMEs from corporate and other buyers, including Government Departments and Public
Sector Undertakings (PSUs), through multiple financiers is known as Trade Receivables Discounting
System (TReDS).
Following are the Salient Features of TReDS.
➢ Unified platform for Sellers, Buyers and Financiers
➢ Eliminates Paper
➢ Easy Access to Funds
➢ Transact Online
➢ Competitive Discount Rates
➢ Seamless Data Flow
➢ Standardised Practices

Bank of Baroda has on boarded all three RBI approved TReDs namely TREDS, RXIL, MYNDSOL.

Topic – 93
Net Interest Margin

Net interest margin is a ratio that measures how successful a firm is at investing its funds in
comparison to its expenses on the same investments. A negative value denotes that the firm
has not made an optimal investment decision because interest expenses exceed the amount of
returns generated by investments.

Net interest margin is calculated as:

(Investment Return – Investment Expenses) / Average Earning Assets

Net interest margin is typically used for a bank or investment firm that invests depositors' money,
allowing for an interest margin between what is paid to the bank’s client and what is made from
the borrower of the funds.
A positive net interest margin indicates that an entity has invested its funds efficiently while
a negative return implies that the bank or investment firm has not invested efficiently.

Bank of Baroda’s – Net Interest Margin (NIM) improved to 3.07 % in Dec’ 2020
 Topic – 94
Customer Segmentation - Radiance
Baroda Radiance is the personalized banking service of our Bank to cater to Banking and Investment
needs of HNI customers with “Total Relationship Value” (TRV) for Rs. 50 lakhs and above. These HNI
customers are called as “Radiance Customers”.
Objective of the Baroda Radiance:
➢ Assign a Dedicated Relationship Managers (RM) for Radiance Customers as one touch point to
cater to his / her banking and investment needs.
➢ A group of Relationship Managers will be attached to a Client Service Executive (CSE). This CSE
will conduct / execute banking and investment transactions originated / initiated by the RMs. These
CSEs will be given multi-sol access in Finacle to enable these transactions.

Criteria for identifying a New To Bank (NTB) customer as Baroda Radiance?

If a new customer wants to open an account with our Bank and avail the facilities of Baroda Radiance,
then they have to fulfill the following criteria.
➢ The account should be opened with the minimum balance of Rs. 10 lakhs and he / she will be
flagged as Radiance customer in CBS.
➢ The customer has to reach the minimum TRV level of Rs. 50 lakhs within 6 months of opening the
account, to continuously avail the facilities offered to the Radiance Customer. In case of failure, the
customer will be de-flagged at the end of the month in which, he / she completes 6 months, after
taking consent from the RM.

Benefits to Radiance Customers are as follows…..

24x7 concierge services : Bank has entered into an agreement with M/s Europ Assistance India (EAI)
for providing concierge service to its Radiance Customers.

Following Services are available under concierge.

A). Lifestyle Assistance
• Restaurant Referral and Arrangement
• Flower Delivery Assistance
• Gift/ Chocolate Delivery Assistance
• Hotel /Airline Referrals
B). Travel Assistance
• Pre-trip information services- Inoculation and Visa Requirement
• Lost Luggage Assistance
• Lost Passport Assistance
• Embassy referral services
C). Road Side Assistance (RSA)
• Emergency Towing Assistance
• On-site Repair Assistance
• Alternative Travel Assistance
Radiance – Effect on our Business
➢ Selling other banking products increases
➢ Profitability
➢ Increases brand image / reputation
➢ Attract new HNI Customers
 Topic – 95
Net Interest Income – How to increase ?
“Net Interest Income” measures the difference between interest received and interest paid,
adjusted relative to the amount of interest-generating assets.

To illustrate, take the simple case where a bank made loans equal to Rs 100 million in a year.
From those loans, it generated Rs 5.5 million in interest income. It also paid out Rs 2.5 million in
interest to its depositors.

Calculate this bank's Net Interest Income with the following formula:

Net Interest Income = (Rs 5.5 million – Rs 2.5 million) / Rs 100 million = 0.03, or 3%.

Thus, if the demand for savings increases relative to the demand for loans, it is likely that the Net
Interest Income will decrease. The opposite is true if the demand for loans is higher relative to
savings.
Dec’ 2020 of our Bank : Net Interest Income (NII) increased to INR 7,749.00 crore

How to increase – NII ?

➢ Increase Loan Portfolio
➢ Increase low cost deposit viz CASA
➢ Increase Fee based income
➢ Selling of Wealth Management Products – Earn Commission
➢ Increase Government business
➢ Encourage Digital Products

Topic – 96
Whistle Blower Policy
(Govt. of India Resolution on Public Interest Disclosure & Protection of Informer (PIDPI)

As per Government of India Office Memorandum no 371/4/2013-AVD-III we reproduce “Whistle Blower

Policy” Guidelines as under Besides the Central Vigilance Commission (CVC) the Designated Agency, as
hitherto, the Chief Vigilance Officers (CVO) of the Ministries/Departments of the Government of India are
also authorized as the Designated Authority to receive written complaint or disclosure on any allegation of
corruption or misuse of office by any employee of that Ministry or Department or any corporation
established by or under any Central Act.

Government Companies, societies or local authorities owned or controlled by the Central Government and
falling under the jurisdiction of that Ministry or the Department. It is informed to the general public that any
complaint which is to be made under this resolution should comply with following aspects:
[Link] complaint should be in a closed/sealed envelope, addressed to the Secretary, Central Vigilance
Commission or to the Chief Vigilance Officer of the Bank.
2. The envelope should be super scribed with “Complaint under the Public Interest Disclosure”. In
case the envelope is not so super-scribed and closed/sealed, it will not be possible for the Designated
Agency (CVC)/Designated Authority (CVO) to protect the complaint under the above resolution and the
complaint will be dealt with as per the normal complaint policy of the Commission.

3. The complainant should give his/her name and address in the beginning or at the end of the complaint
or in an attached letter.

4. The Designated Agency or the Designated Authority will ascertain from the complainant whether he
was the person who made the complaint or not by writing a letter to him/her.

5. The disclosure or complaint shall contain as full particulars as possible and shall be accompanied by
supporting documents or other materials.

6. The text of the complaint should be carefully drafted so as not to give any details or clue as to his/her
identity. However, the details of the complaint should be specific and verifiable.

7. In order to protect identity of the person, acknowledgement will not be issued and the whistle blowers
are advised not to enter into any further correspondence in their own interest.

8. The Designated Agency or the Designated Authority may, if it deems fit call for further information or
particulars from the person making the disclosure/complaint.

9. If the complaint is anonymous, the Designated Agency or the Designated Authority shall not take any
action in the matter.

[Link] identity of the complainant will not be revealed – unless complainant did so by himself

[Link] any person is aggrieved by any action on the ground that he is being victimized due to the fact that
he had filed a complaint or disclosure, he may file an application before the Designated Agency or the
Designated Authority seeking redress in the matter, who shall take such action, as deemed fit.

[Link] on the application of the complainant, or on the basis of the information gathered, if the
Designated Agency/Designated Authority is of the opinion that either the complainant or the witnesses
need protection, the Designated Agency/Designated Authority shall initiate suitable action.

[Link] case the Designated Agency/Designated Authority finds the complaint to be motivated or vexatious
under the resolution, action against complainant may be taken.
 Topic – 97
Social Media Policy of Our Bank
(Circular No. BCC:BR:112:303 Dt. 27.05.2020)
Our Bank has observed that few employees are expressing their views in social media, which are
indecent, derogatory, un-parliamentary and at times vulgar in language in blatant violation of the extant
guidelines and the Bank's goodwill and brand have been negatively impacted due to irresponsible
comments made by these employees in their individual capacity.

Further, it is observed that confidential and internal communication of the Bank is being shared on
various platforms of social media including WhatsApp etc., which has been viewed very seriously by the
Top Management. Accordingly, show cause notice / disciplinary action has been initiated against some
erring employees for such Misconduct/lapses on their part.

Bank has therefore reiterated that any sender of an inappropriate communication (may or may not be
the originator) shall be held responsible and liable for disciplinary action for violation of the Social Media
Policy of the Bank. Uploading/ forwarding of any official document, letter, circular or correspondence of
the Bank on any social media platforms including on Whatsapp, chat forums where non-employees are
also members is strictly prohibited

Use of social media platforms by staff members

(Circular No. BCC:BR:112:594 Dt. 05.10.2020)
All staff members are expected to join/follow verified accounts of the Bank. While doing so care needs to
be taken to ensure that banks guidelines are followed and misuse / misconduct are not practiced.
However, it is observed that many staff members are making personal/branch/office/group profiles on
social media using bank’s name and logo. This is gross violation of the Social Media Policy of the Bank for
Staff Members and is a major cause of concern. Also, using bank’s name and logo in personal profiles
violates the branding policy of the bank. Staff members involved in such activities are required to change
/ delete these profiles. Few important points to be practiced by staff members while using social media
platforms are as follows:

➢ Please adhere to the Social Media Policy for Staff Members issued by the bank.
➢ DO NOT use the bank name and logo in the profile name and display picture. Few examples of
violation of this are shared in Annexure 1 for reference
➢ Follow only verified Bank of Baroda accounts on Facebook, Twitter, YouTube, Instagram &
LinkedIn
➢ Refrain from participating in any controversial, racial, religious, sensitive post/subject.
➢ Refrain from creating new informal groups on social media platforms.
 Impact of Social Media / Social Media Marketing on Banks
Social media Marketing, is a series of websites and applications designed to allow people to share content
quickly, efficiently and in real-time. Interaction, live chat, status apprises, image as well as video sharing
are few examples for popularity of social media Marketing. Role of Social Media Marketing in Banking
business cannot be under estimated. It is the change in Banking business. Social media Marketing
represents low-cost tools that are used to combine technology and social interaction with the use of
words. These tools are typically internet or mobile based.... Social media marketing gives sellers a voice
and a way to communicate with peers and potential consumers.
Social media marketing permits users to distribute messages to individuals based on highly specific
criteria, including geographic location, age, gender, career, education and interests-among another
significant user information. Such specificity increases the relevance of a given communication, improving
the effectiveness of a particular bank efforts. Further, through social media, banks are able to match their
marketing messages to younger audiences, higher income individuals, or even people in certain life
stages in a defined area enhancing message impact considerably. Online networking can grow your range
and fortify your advertising message by coordinating flawlessly with other computerized and conventional
strategies.

Positive Impact :
➢ Build Social Authority
➢ Pull and not Push Marketing
➢ Engaging with customers, employess, stakeholders
➢ Enhancing the brand by connecting with customers
➢ Distinguishing from competitors
➢ Cost cut marketing
➢ Boost innovation
➢ Increases revenue
➢ Exposes company values – easily and quickly
➢ Attracts specific kinds of customers
➢ Changeable and Real Time
➢ Cheap
➢ Easy Reachable

Negative Impact :
➢ Security Threat
➢ Even simple mistake – Reputation Risk
 Topic – 98
POSH
PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE

[GUIDELINES BY SUPREME COURT OF INDIA AND ITS IMPLEMENTATIONIN THE BANK]

The Hon’ble Supreme Court of India in its judgment in WP (Crl) No. 666-70 of1992 (Vishaka&Ors. Vs.
State of Rajasthan &Ors.) has laid down guidelines for prevention of sexual harassment of women at work
places. The guidelines and norms prescribed are as hereunder :-

A. Definition of sexual harassment :-

Sexual harassment shall include such unwelcome sexually determined behaviour (whether
directly or otherwise) as
(a) physical contact and advances;
(b) demand or request for sexual favours;
(c) sexually coloured remarks;
(d) showing pornography; or
(e) any other unwelcome physical, verbal or non-verbal conduct of a sexual
nature.

Where any of the above acts is committed in circumstances where under the victim of such conduct has a
reasonable apprehension that in relation to the victim’s employment or work, whether she is drawing
salary or honorarium or voluntary, whether in Government, public or private enterprise, such conduct
can be humiliating and may constitute a health and safety problem. It is discriminatory for instance when
the woman has reasonable grounds to believe that her objection would disadvantage her in connection
with her employment or work including recruitment or promotion or when it creates a hostile work
environment. Adverse consequences might be visited if the victim does not consent to the
conduct in question or resists any objection thereto.

B. Preventive steps :-
All employers whether in public or private sector should take appropriate steps to prevent sexual
harassment as under :-

a). Express prohibition of sexual harassment as defined above at the work place, to be notified, published
and circulated in appropriate ways.
Rules/ regulations relating to conduct and discipline should include rules/ regulations prohibiting
sexual harassment and provide for appropriate penalties in such rules against the offender.
b). Appropriate work conditions should be provided in respect of work, leisure, health and
hygiene to further ensure that there is no hostile environment towards women at
workplace and no employed woman should have reasonable grounds to believe that
she is disadvantaged in connection with her employment.
C. Criminal proceedings :-
Where such conduct amounts to a specific offence under the Indian Penal Code or under any other law,
the employer shall initiate appropriate action in accordance with law by making a complaint with the
appropriate authority. In particular it should ensure that victims or witnesses are not victimized or
discriminated against while dealing with complaints of sexual harassment. The victims of sexual
harassment should have the option to seek transfer of the perpetrator or their own transfer.
D. Disciplinary action :-
Where such conduct amounts to misconduct in employment as defined in the relevant service rules,
appropriate disciplinary action should be initiated by the employer in accordance with those rules.

E. Complaints Mechanism :-
Whether or not such conduct constitutes an offence under law or breach of service rules, an appropriate
complaint mechanism should be created for redressal of the complaint and such mechanism should
ensure time-bound treatment of complaint.

F. Complaints Committee :-
The complaints mechanism referred to in 7 above should be adequate to provide where necessary a
Complaints Committee (CC), a special Counselor or other support service including
maintenance of confidentiality.

The CC should be headed by a woman and not less than half of its members should be women.
Further to prevent possibility of any undue pressure or influence from senior level, CC should involve a
third party either NGO or other body who is familiar with the issue of sexual harassment. CC
should make an annual report to the Government department concerned of the complaints and the
action taken by them.

G. Workers’ initiative :-
Employees should be allowed to raise issues of sexual harassment at workers meeting and other
appropriate forum and it should be affirmatively discussed in the employer – employee meetings.

H. Awareness :-
Awareness of the rights of female employees in this regard should be created in particular by notifying
the guidelines in a suitable manner.

I. Third Party Harassment :-

Where sexual harassment occurs as a result of an act or omission by any third party or an outsider, the
employer and the person in-charge will take all steps necessary and reasonable to assist the affected
person in terms of support and preventive action.
On receipt of advice from RBI for strict compliance of Supreme Court guidelines, Bank has set-up a
complaints mechanism to deal with the complaints of sexualharassment at work place. Bank had
circularized the guidelines of the Hon’ble Supreme Court vide circular no. CO/BR/90/76 dated 16.04.1998.
Conduct Regulations/ Service rules have been amended to include prohibition of sexual harassment as
under :-
➢ Bank of Baroda Officer Employees’ Conduct Regulation 24 (A).
➢ Para 5 (t) of Bipartite Settlement dated 10.04.2002 – Gross Misconduct.

A Complaints Committee (CC) headed by a lady Executive called the Chief Liaison Officer has been set
up. 50% members of the CC are lady employees. In each Zone, Zonal Liaison Officers are
appointed for easy accessibility to lady employees.
Complaints Mechanism :
➢ A complaint of sexual harassment is required to be given in writing to Zonal Liaison Officer (ZLO)
within –15- days of the occurrence of the incident. If any aggrieved lady employee seeks her
own transfer, the same shall be considered by the Zonal Head/ Regional Head.

➢ The complaint may also be given either to Chief Liaison Officer (CLO)/ Zonal Head/ Regional
Head.

➢ Zonal Head/ Regional Head, as the case may be (for Officers - Zonal Head and for workmen -
Regional Head), shall then discuss the complaint with ZLO and give a briefing for an
investigation into the complaint.

➢ ZLO then shall discuss the complaint with both the parties separately viz. the accused and the
complainant.

➢ ZLO may also visit the scene of the alleged incident, talk to witnesses, ascertain background of
both the parties and submit investigation report.

➢ Zonal Head/ Regional Head shall discuss the investigation report with ZLO.

➢ If Zonal Head/ Regional Head is satisfied that there is a prima-facie case of sexual harassment, he
shall then immediately separate both the parties.

➢ Zonal Head/ Regional Head shall then call for explanation from the accused party.

➢ Thereafter, Zonal Head/ Regional Head shall send to Chief Liaison Officer at Corporate Office, the
complaint and the investigation report along with his comments thereon.

➢ CLO shall place before the CC the entire report received from Zonal Head/ Regional Head for
deliberation.

➢ CC shall deliberate upon the case, call for further clarification/ order a fresh investigation if
required, and thereafter advise Zonal Head/ Regional Head whether the case falls within the ambit
of sexual harassment in terms of SC judgment or otherwise.
➢ Zonal Head/ Regional Head shall then proceed to take action in his capacity as Disciplinary
Authority and institute departmental action, if required.

➢ After the departmental enquiry is concluded and penalty imposed or exoneration, as the case
may be, the Zonal Head/ Regional Head shall report back to the CC, the action taken.

➢ The action taken report shall be placed before CC by CLO for information and reporting to
Chairman and Managing Director.

➢ The CLO shall make an annual report to the Government concerning the complaints received and
the action taken by the Bank.
Role of Zonal Liaison Officer (ZLO) :-

➢ ZLO is a contact point for lady employees to lodge sexual harassment complaint and seek
redressal.

➢ ZLO’s job is to hear the complaint, take the complaint in writing and investigate the complaint.

➢ ZLO shall discuss the issue with both the parties i.e. the accused and the complainant separately.

➢ ZLO shall discuss the complaint with Zonal Head / Regional Head in order to come to a conclusion
whether prima facie there is a case of sexual harassment.

➢ ZLO shall seek immediate transfer of the complainant, if the complainant so desires.

➢ ZLO shall enlighten the complainant about the procedures that will follow once she decides to
lodge a complaint and have her grievance redressed.

➢ ZLO shall ensure that if there is a prima facie case of sexual harassment then parties are
separated immediately.

➢ ZLO shall ensure that the investigation report with the comments of Zonal Head/ Regional Head
are forwarded to CLO at Corporate Office immediately as time is of essence.

➢ ZLO shall contact CLO at Corporate Office, in case, any clarification is required.

➢ ZLO shall ensure that the Zone/ Region follows the laid down procedures in cases of sexual
harassment.
 Topic – 99
Project Finance
Project finance is the financing of long-term infrastructure, industrial projects and public services using a
non-recourse or limited recourse financial structure.

Usually, a project financing structure involves a number of equity investors, known as 'sponsors', a
'syndicate' of banks or other lending institutions that provide loans to the operation. They are most
commonly non-recourse loans, which are secured by the project assets and paid entirely from project
cash flow, rather than from the general assets or creditworthiness of the project sponsors

A Special Purpose Vehicle is a legal entity which is formed for a specific purpose such as a project in this
case. During the execution, the project’s funding requirements will be solely managed by the SPV. The
purpose is to insulate the holding company from any riskiness and eventualities arising in the project.
Moreover, when the project funds are duly protected and managed by the SPV, even external investors
gain more confidence in the company’s operations
 Topic – 100
Key Strength of Bank of Baroda
➢ A well recognized brand in the Indian Banking Industry with strong retail franchise
➢ Global presence across 99 overseas offices spanning 21 countries
➢ Strong domestic presence through 9288 branches & 13,000+ ATMs and Cash Recyclers supported
by self-service channels
➢ Well distributed branch network with 31% coverage in Rural, 27% in Semi-urban, 23% Metro and
20% Urban
➢ Deep Financial Inclusion Coverage – 50.8 million accounts
➢ Committed Workforce of 85,135
➢ Customer base of ~131 million
➢ Subsidiaries and JVs cover the entire Financial Spectrum - Insurance, Asset Management, Capital
Markets
➢ Pioneer in many customer centric initiatives
➢ Capital Adequacy Ratio of 13.26 % which is above the regulatory requirements
➢ Digi Next
➢ Fintech Alliances
➢ Next Wave of Digital Transformation with IT Center of Excellence and Analytics Center of
Excellence
• ACoE is expected to help enable data-driven decision making leveraging Big Data
Technology and AI/ML based real time analytics
• IT CoE is expected to drive digital transformation through new age digital technology, pool of
technology resources with varied IT & Digital skills and collaboration with Fintech
ecosystems driving disruption
Key Initiatives under IT CoE are….
✓ Theme – 1 : Focus on Platforms – called as - platform orchestrated approach
✓ Theme – 2 : Customer Experience
✓ Theme – 3 : Drive Adoption
✓ Theme – 4 : Process Digitisation
 Topic – 101
Bank of Baroda : CoE Tieups
[Centre of Excellence (CoE) - with IIT-Mumbai]
Next Wave of Digital Transformation with

➢ IT Center of Excellence (ITCoE)

➢ Analytics Center of Excellence (ACoE)
➢ Artificial Intelligence (AI)

• ACoE is expected to help enable data-driven decision making leveraging Big Data Technology and
AI/ML based real time analytics
• IT CoE is expected to drive digital transformation through new age digital technology, pool of
technology resources with varied IT & Digital skills and collaboration with Fintech ecosystems driving
disruption

Key Initiatives under CoE are….

✓ Theme – 1 : Focus on Platforms – called as - platform orchestrated approach
✓ Theme – 2 : Customer Experience
✓ Theme – 3 : Drive Adoption
✓ Theme – 4 : Process Digitisation

Creation of Centre of Excellence for Persons with Disabilities

Memorandum of Understanding with SBI Foundation

Our Bank has signed a Memorandum of Understanding with SBI Foundation {not for-profit subsidiary of
State Bank of India) for partnering with our Bank for creation of an enabling ecosystem for empowerment of
our employees with disabilities

SBI Foundation, began an 'inclusion of persons with disabilities program' to ensure the inclusion and
empowerment of the employees with disabilities of State Bank of India, the objective of which was to find
suitable jobs and job roles for them and provide them with an enabling environment through training
sensitization of peers and by creating awareness at senior management level. This intervention is now an
ongoing process and has become an integral part of their training system

With an objective of helping other organizations to create a similar enabling environment for their PWD
employees, SBI Foundation has extended their services for creating a "Centre of Excellence for PWDS".
The Centre of Excellence managed by SBI Foundation aims to make a difference in the workplace for
persons with disability by bringing new insights to problems, using innovative, engaging learning methods
and workplace solutions while enabling others to become inclusive and adaptive leaders
 Topic – 102
Bank - Merger / Amalgamation – Boon or Bane
A merger involves the total absorption of a target firm by acquiring. As a result one firm ceases to exist
and only the new firm (acquiring) remains.

Amalgamation is defined as the combination of one or more companies into a new entity. It includes:
➢ Two or more companies join to form a new company
➢ Absorption or blending of one by the other
Thereby, amalgamation includes absorption.
However, one should remember that Amalgamation as its name suggests, is nothing but two companies
becoming one. On the other hand, Absorption is the process in which the one powerful company takes
control over the weaker company.

Merger / Amalgamation….. gives more benefits to the acquiring bank particularly reduction of Fixed and
Variable costs and it avoids the wastages of expenditure to a large extent.

But one important factor to be keep it mind by the acquiring bank in merging process i.e., Strengthen the
Organizational Structure i.e., Centralization and Decentralization of operational areas, span of control of
the Bank. Undoubtedly merger gives number of advantages to acquiring bank, at the same
time Controlling is very difficult due increase in size of the Organization, Business Operations and
Volumes. To overcome this problem, from day one of merging processes, the acquiring bank should think
about the Control aspects for each and every function i.e., how effectively and efficiently the acquiring
bank control Bank Branch located in nook and corner of the country. The objective of merger will be
defeated, if control systems are not well established properly by the acquiringr bank. Due to availability of
latest Information Technology in the country, controlling Branches located in villages from the Head Office
is not a big problem by the acquiring Bank.

Pros / Boon / Advantages :

➢ Increase in Competition
➢ Decrease in Product Price and thereby decrease in Spreads
➢ Rationalization of Branches / Regional / Zonal Offices – Geographical Penetration
➢ Controlling the Real Estate Costs
➢ Manpower Adjustments – Talent & Team Upgrade
➢ Lessen Recruitment Costs
➢ Minimization of Overheads Costs
➢ Control on wastage of Advertisement Expenses
➢ Large Scale Economies
• Decrease in Overheads
• Decrease in Cash Replenishment Costs of ATMs
• Decrease in maintenance costs of Alternate delivery channels including Call Centres.
• Decrease in Advertisement, Selling and Distribution Expenses.
• Decrease in Information Technology Costs to a large extent.
• Decrease in commission payable to business sourcing agencies.
• Decrease in Rental Costs due merging of Big Branches and CPCs
• Decrease in Stationery, Printing Expenses
➢ Better Asset Liabilities Management
➢ Implementation of Basel III accord
➢ Technology up-gradation
 ➢ Controlling Market, Credit and Operational Risks
➢ Easy to supervise by the Regulator and Government of India
➢ Better Customer Service

Cons / Bane / Disadvantages :

➢ Poor Culture Fit
➢ Poor Commitment
➢ Customer Impact And Perception – Regional Affinity with Customer
➢ Compliance And Risk Consistency
➢ Merger sees the stronger banks coming under pressure because of the weaker banks
➢ Merger could only give a temporary relief but not real remedies to problems like bad loans and bad
governance in public sector banks
➢ Larger banks might be more vulnerable to global economic crises while the smaller ones can
survive

Topic – 103
AML (Anti Money Laundering)
Money Laundering… is a process by which money is derived from Criminal Activities eg..
➢ Drug Trafficking
➢ Illegal Arms Sales
➢ Smuggling
➢ Gambling

All the above money is brought into the Financial System as to conceal its illicit origin and to make it
appear to be from LICIT origin

Stages of Money Laundering

➢ Placement
➢ Layering
➢ Integration

To curb Money Laundering : Prevention of Money Laundering Act 2002

KYC
Key Elements of Know Your Customer
➢ Customer Acceptance Policy
➢ Customer Identification Procedure
➢ Transaction Monitoring
➢ Risk Management
 Officially Valid Documents
“Officially Valid Document” (OVD) are
➢ The Passport
➢ The Driving Licence
➢ Proof of possession of Aadhaar number
➢ The Voter's Identity Card issued by the Election Commission of India
➢ Job card issued by NREGA duly signed by an officer of the State Government
➢ Letter issued by the National Population Register containing details of name and address.

Freezing & Closure of Non-KYC Compliant Account

Topic – 104
BCSBI - Banking Codes and Standard Board of India
➢ Inception : Feb 2006
➢ Registered as Society – Society Registration Act 1860
➢ Members – except “State Cooperative Bank and NBFC”
➢ Voluntary Commitment and not Mandatory

Purpose / Objective of BCSBI…To evolve Codes of Conduct for…

➢ Fair treatment to Customers
➢ Monitor their adherence

Two Codes of BCSBI… are…

➢ Codes of ‘Bank’s Commitment to Customers’
➢ Codes of ‘Bank’s Commitment to Micro & Small Enterprises
 Topic – 105
Supply Chain Finance
❑ Supply Chain Finance (SCF) is one of the options for extending short term working
capita finance to dealers/suppliers (“Spokes") who have business relationships with large
corporates (“Anchors”).
❑ In this type of financing, bank structures facilities on digital platform to finance the
suppliers (vendors) and buyers (dealers) of a large corporate (Anchor), wherein each
financial transaction is linked to a base document i.e. "Invoices / Purchase Orders /
Indent" between the Anchor and the Spoke. Financing can also be made to the Anchor
itself against its purchases from vendors.
❑ In any business set-up, the supplier would like to be paid instantaneously towards
goods supplied, whereas the buyer would want to have extended credit periods towards
goods purchased.
❑ Supply Chain Finance attempts to bridge the gap of supplying goods and receiving
proceeds there against, by enabling both the parties to get hassle-free Working Capital to
carry out sale and purchase transactions in a much relaxed manner on the terms &
conditions agreed upon by them.
❑ This helps the spokes and Anchor in sustaining a seamless business flow and avoid
working capital related difficulties.

Definitions

❖ Dealer Finance: Dealer Finance is a mechanism through which Bank provides Overdraft
Limit to the Dealers. Each disbursement in the OD account will be against invoice raised
by the Anchor on dealer and shall have a fixed tenor with distinct repayment dates for
each of the invoices. The facility is in the form of Overdraft to provide a running account
facility to the customer. Disbursement is made only to the credit of Anchor's account
against valid invoices raised by the Anchor (for goods supplied to the dealer) which are
duly accepted by the Dealer. Limits are on the dealer i.e. our obligor / borrower is the
dealer.

❖ Vendor Finance: Vendor Finance is a mechanism through which Bank provides

Overdraft Limit to the Vendors. Each disbursement in the OD Account will be against
invoice raised by the Vendor on the Anchor and shall have a fixed tenor with distinct
repayment dates for each of the invoices. The facility is in the form of Overdraft to
provide a running account facility to the customer. Disbursement is made only- to the
credit of Vendor's account against valid invoices raised by the Vendor on the Anchor (for
goods supplied to the Anchor) which are duly accepted by the Anchor. Limits are on the
Vendor i.e. our obligor / borrower is the Vendor.
❖ Payable Finance: Payable Finance is a mechanism through which Bank provides
Overdraft Limit to the Anchor. Each disbursement in the OD Account will be against
invoice raised by the Vendor on the Anchor and shall have a fixed tenor with distinct
repayment dates for each of the invoices. The facility is in the form of Overdraft to
provide a running account facility to the customer. Disbursement is made to the credit of
Vendor's account against valid invoices raised by the Vendor on the Anchor (for goods
supplied to the Anchor) which are duly accepted by the Anchor. Limits are on the
Anchor i.e. our obligor/borrower is the Anchor.

❑ Benefits of the product to Dealer and Anchor are as under:

❖ Dealer :
• Source of Finance at reasonably lower rate.
• Dealers may be able to increase profitability by availing Cash discounts from
Corporate Availability of liquidity for increased off-take.
• Steady and economical source of Working Capital Financing for the Dealer.

❖ Anchor :
• Convert receivables into cash which in turn improves liquidity for the Anchor. Immediate
realization of sales for the Anchor.
• Release of funds from the Balance Sheet resulting in improvement in financial Ratios for
• Improves Sales Turnover.

Product Specific Risk

• Exposure to dealers with lower credit rating- Risk Mitigates is lending against invoice.
• Claims by Dealer that debits to the facility account unauthorized- Risk Mitigant is
Agreement with Dealer.
• Double financing Risk- Risk Mitigant is undertaking from dealer and proceeds are
credited directly to Anchor’s account.
 Topic – 106
Indian Banking System – Challenges / Opportunities

The Indian banking system consists of 27 public sector banks, 21 private sector banks, 49 foreign
banks, 56 regional rural banks, 1,562 urban cooperative banks and 94,384 rural cooperative
banks, in addition to cooperative credit institutions. It is very dynamic now-a-days.

As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised and well-
regulated. The financial and economic conditions in the country are far superior to any other
country in the world. Credit, market and liquidity risk studies suggest that Indian banks are
generally resilient and have withstood the global downturn well.

Indian banking industry has recently witnessed the roll out of innovative banking models like
payments and small finance banks. RBI’s new measures may go a long way in helping the
restructuring of the domestic banking industry.

Opportunities
➢ A growing economy
➢ Banking deregulation
➢ Increased client borrowing
➢ An increase in the number of banks / branches
➢ An increase in the money supply
➢ Low government-set credit rates

General Challenges
➢ Market Discipline & Transparency
➢ Human Resources Management
➢ Financial Inclusion
➢ Employee Retention
➢ Customer Retention
➢ Intense Competition
➢ Privacy & Safety
➢ Environmental & Economical Issues
➢ Social & Ethical Issues.

Page 111 of 131

Other Emerging Challenges

➢ Asset quality is under tremendous pressure due to continued economic slowdown and
increase in the rise of the levels of Gross nonperforming advances and NPA’s.
➢ One of the major problems is Large Over dues of farmers in small branches of rural
areas. And Government decision to waive to all farmers loans has added in the
difficulties of such banks.
➢ Indian banks are facing bad loans or Non-performing assets (NPA), which means loans
which are not paid by the borrowers on time, and hence causing huge burden on
banks.
➢ Even after all the efforts made by the government, banks at rural areas are still in loss
as rural people are still not familiar with banking system.
➢ There is also risk from political interference as the government can interfere with
banking policies at the time of budget implementation.
➢ One of the emerging threats is Cyber threats as the most of the transaction are made
through digital channels, which are not 100% secure.
➢ Many senior bank workers are still not familiar with the use of technologies in bank and
young and inexperienced are replacing them.

Steps taken by Indian banking sector:-

➢ All banks are wholeheartedly working for the complete implementation of PMJDY
(Pradhan Mantri Jan DhanYojna) making banking service available to everyone.
➢ For farmers, Kisan Credit Card scheme is launched to help them with Loans through
banks.
➢ Protection of bank customers’ information has one of the trust areas for RBI. And
for this RBI has issued a charter of customer rights on the global best practices.
➢ With the implementation of KYC/AML norms banks are now able to remove all the fake
accounts and with this monitoring of transactions is easy.
➢ To make payment easier, accessible and secure, banks and Government together
launched AEPS(Adhaar enabled payment system).
➢ Banks are getting digitized means converting data into digital format, thus providing
better services to customers.
➢ Banks are taking steps to reduce NPA and to strengthen the balance sheets and also
working hard to strengthen NPA’s recovery rules.

Page 112 of 131

 Topic – 107
Back Office Concept – Good or Bad
Examples – SMS / CPC / SMELF / RBO / RBO…

Advantages
➢ Makes Banking Business Efficient and Streamlined
➢ Skilled staff can concentrate more on the core elements and functions of the day-to-day
business
➢ Utilize human resources / other resources systematically for optimum growth and
productivity.
➢ Increase in productivity, revenue and efficiency
➢ Access to Professional, Expert and High‐quality Services
➢ Overall Cost Advantage
➢ Saves time and money
➢ One can concentrate on branch functions well and thereby develops the vital relationships
with customers and clients
➢ Business runs consistently as it takes care of the operations and keeps a track of the
processes.
➢ Optimize the resources and generating wealth

Dis-Advantages
➢ Lack of Customer Focus
➢ A Threat to Security and Confidentiality
➢ Dissatisfactory Services
➢ Ethical Issues
➢ Other Disadvantages: Include misunderstanding of the contract, lack of communication,
poor quality and delayedservices.

Page 113 of 131

 Topic – 108
IBC - An Effective Tool in NPA recovery
IBC' 2016, is the Bankruptcy Law of India, which seeks to consolidate the existing framework by
creating a single law for Insolvency & Bankruptcy

INSOLVENCY is a state, when an individual or organisation is unable to meet its outstanding

financial debt towards its lender as it become due.

BANKRUPTCY is a concept slightly different from Insolvency. A Bankruptcy is, when a person
voluntarily declares him as an insolvent and goes to the court.

CODE is usually known as the collection or compendium of laws. It refers to the systematic and
comprehensive compilation of laws, rules or regulations, what are consolidated and classified
according to a particular subject matter.

IBC is applicable to Individuals, Partnerships, LLPs and Corporates

The Institutional Infrastructure under IBC'2016, rests on Four Pillars, viz....

• Insolvency Professionals
• Information Utilities
• Adjudicating Authorities
• Insolvency and Bankruptcy Board of India

INSOLVENCY PROFESSIONALS assist in the completion of Insolvency Resolution, Liquidation

and Bankruptcy proceedings and are governed by Insolvency Professional Agency.

The Information Utilities would collect, collate, authenticate and disseminate Financial
Information. They maintain electronic databases on lenders and terms of lending.

The Adjudicating Authorities under the code are National Company Law Tribunal (NCLT)
and Debt Recovery Tribunal (DRT)
• DRT - Individuals / Partnerships
• NCLT - Corporates / Companies / LLP

The Insolvency and Bankruptcy Board of India (IBBI) - is the body which has regulatory oversight
over Insolvency Professionals, Insolvency Professional Agencies and Information Utilities.

Page 114 of 131

Corporate Insolvency Resolution Process

➢ 10 Days – Notice
➢ Apply to NCLT
➢ NCLT – either accept or reject application, within 14 days
➢ NCLT - appoints Interim Insolvency Professional within 14 days
➢ Interim IP constitutes Creditors' Committee
➢ Creditos' Committee meet within - 7 days
➢ Confirm or Replace Interim IP by 75 % votes
➢ Insolvency Resolution decision - 75 % vote
➢ CIRP to be completed within 330 days
➢ Resolution Professional conducts CIRP
➢ RP prepares Information Memorandum
➢ Resolution plan - submitted before COC for approval.
➢ Decision on Restructuring process viz..Revised Repayment Plan or Liquidation of Asset
➢ The Resolution plan will be sent to NCLT for final approval and implemented once
approved.

Insolvency & Bankruptcy code 2016 (IBC):

The code is the bankruptcy law of India which seeks to combine the existing framework by
creating a single law for insolvency and bankruptcy.

It recommends two separate tribunals to supervise the insolvency process– the National
Company Law Tribunal (NCLT) for companies and limited liability partnership for firms, while the
Debt Recovery Tribunal for individuals and partnership.

Time period for completion of case has maximum limit of 330 days.

Page 115 of 131

 Topic – 109
Early Warning Signals & Fraud Prevention

❑ A Red Flagged Account (RFA) is one where a suspicion of fraudulent activity is

thrown up by the presence of one or more Early Warning Signals (EWS). These
signals in a loan account should immediately put the bank on alert regarding a
weakness or wrong doing which may ultimately turn out to be fraudulent. A bank
cannot afford to ignore such EWS but must instead use them as a trigger to
launch a detailed investigation into a RFA.

❑ RBI issued an illustrative list of 45 EWS in 2015 for the guidance of banks.
Banks may choose to adopt or adapt the relevant signals from this list and also
include other alerts/signals based on their experience, client profile and
business models. The EWS so compiled by a bank would form the basis for
classifying an account as a RFA.

❑ As per RBI The threshold for EWS and RFA is an exposure of ₹ 50 crore or more
at the level of a bank irrespective of the lending arrangement (whether solo
banking, multiple banking or consortium). All accounts beyond ₹ 50 Crore
classified as RFA or ‘Frauds’ must also be reported on the CRILC data platform
together with the dates on which the accounts were classified as such. As of now,
this limit is Rs.3 crore in Bank of Baroda.

❑ In respect of large accounts it is necessary that banks undertake a detailed

study of the Annual Report as a whole and not merely of the financial
statements, noting particularly the Board Report and the Managements’
Discussion and Analysis Statement as also the details of related party
transactions in the notes to accounts.

❑ As per RBI direction, the most effective way of preventing frauds in loan
accounts is for banks to have a robust appraisal and an effective credit monitoring
mechanism during the entire life-cycle of the loan account. Any weakness that
may have escaped attention at the appraisal stage can often be mitigated in case
the post disbursement monitoring remains effective. In order to strengthen the
monitoring processes, based on an analysis of the collective experience of the
banks, inclusion of the following checks / investigations during the different stages
of the loan life-cycle should be carried out:
Page 116 of 131
 ➢ Pre-sanction: As part of the credit process, the checks being applied
during the stage of pre-sanction may consist of the Risk Management
Group (RMG) or any other appropriate group of the bank collecting
independent information and market intelligence on the potential borrowers
from the public domain on their track record, involvement in legal disputes,
raids conducted on their businesses, if any, strictures passed against them
by Government agencies, validation of submitted information/data from
other sources like the ROC, gleaning from the defaulters list of RBI/other
Government agencies, etc., which could be used as an input by the
sanctioning authority. Banks shall keep the record of such pre-sanction
checks as part of the sanction documentation.

➢ Disbursement: Checks by RMG during the disbursement stage, shall

among others, focus on the adherence to the terms and conditions of
sanction, rationale for allowing dilution of these terms and conditions, level at
which such dilutions were allowed, etc. The dilutions should strictly conform to
the broad framework laid down by the Board in this regard. As a matter of
good practice, the sanctioning authority may specify certain terms and
conditions as ‘core’ which should not be diluted. The RMG may immediately
flag the non-adherence of core stipulations to the sanctioning authority.

➢ Annual review: While the continuous monitoring of an account through

the tracking of EWS is important, banks also need to be vigilant from
the fraud perspective at the time of annual review of accounts. Among
other things, the aspects of diversion of funds in an account, adequacy
of stock vis-a-vis stock statements, stress in group accounts, etc., must
also be commented upon at the time of review.

❑ Our bank has developed a SOP for automation of EWS. The purpose of this
SOP is to define all key aspects involved in identification of Early Warning
Signals (EWS) for classification of account as High, Medium & Low from risk
angle and responsibilities of individuals involved in the process. All advance
accounts of Rs.50.00 lakhs and above irrespective of lending arrangement, to
be brought under EWS.

Page 117 of 131

 Topic – 110
RAROC

Basic Computation is done based on the following

➢ Risk Adjusted Net Income : This calculated as Revenues (Gross Interest Income +
Other Fees , Commission, etc) – Fund Transfer Pricing – Expected Credit Loss
➢ Capital Employed : The Capital Employed may be considered as regulatory capital
as prescribed by regulator or economic capital computed by the bank as per its own
policy and methodology. However, in our implementation; regulatory capital is to be
considered. The required regulatory capital is 10.88 % of the Risk Weighted Assets
at present.
➢ Hurdle Rate (Cost of Equity) : It is the minimum rate of return expected by the
share holders. This is calculated based of Capital Asset Pricing Model (CAPM) of
the Bank and the same is advised by the Bank from time to time.
RAROC is to be computed for each credit exposure (other than exempted category)
and the same is required to be compared with the Cost of Equity (COE). Proposals
where RAROC equals / exceeds the COE (presently 15 %) shall be considered as
indicative benchmark for domestic exposures.

Some of the Uses of RAROC

➢ Accept / Reject decision of credit proposal
➢ Pricing of loan proposal
➢ Structuring (i.e Collateral Coverage)
➢ Compare profitability across business segments
Page 118 of 131
 Topic – 111
Libor
The London Interbank Offered Rate (LIBOR) is a benchmark interest rate at
which major global banks lend to one another in the international interbank market
for short-term loans.

LIBOR, which stands for London Interbank Offered Rate, serves as a globally
accepted key benchmark interest rate that indicates borrowing costs between
banks. The rate is calculated and will continue to be published each day by
the Intercontinental Exchange (ICE), but due to recent scandals and questions
around its validity as a benchmark rate, it is being phased out. According to the
Federal Reserve and regulators in the UK, LIBOR will be phased out by June 30,
2023, and will be replaced by the Secured Overnight Financing Rate (SOFR). As
part of this phase-out, LIBOR one-week and two-month USD LIBOR rates will no
longer be published after December 31, 2021

In Point Form
• LIBOR is the benchmark interest rate at which major global banks lend to one
another.
• LIBOR is administered by the Intercontinental Exchange, which asks major
global banks how much they would charge other banks for short-term loans.
• The rate is calculated using the Waterfall Methodology, a standardized,
transaction-based, data-driven, layered method.
• LIBOR has been subject to manipulation, scandal, and methodological
critique, making it less credible today as a benchmark rate.
• LIBOR is being replaced by the Secured Overnight Financing Rate (SOFR)
on June 30, 2023, with phase-out of its use beginning after 2021.

Page 119 of 131

 Topic – 112
Business Correspondent (BC) - Model
The RBI has allowed banks to appoint entities and individuals as agents for providing basic
banking services in remote areas where they can’t practically start a branch. These agents are
called business correspondents. BCs are considered as practical solutions to extend basic
banking services to the nearly 600000 village habitations in the country. Business
Correspondents are hence instrumental in facilitating financial inclusion in the country.
What are BCs?
Business Correspondents are retail agents engaged by banks for providing banking services at
locations other than a bank branch/ATM. BCs enable a bank to provide its limited range of
banking services at low cost. They hence are instrumental in promoting financial inclusion.
What are the functions of BCs?
BCs have to do a variety of functions viz, identification of borrowers, collection of small value
deposit, disbursal of small value credit, recovery of principal / collection of interest, sale of micro
insurance/ mutual fund products/ pension products/ other third party products and receipt and
delivery of small value remittances/ other payment instruments, creating awareness about
savings and other products, education and advice on managing money and debt counseling, etc.
What types of products can be provided by BCs?
As per the RBI guidelines the products provided by BCs are: Small Savings Accounts, Fixed
Deposit and Recurring Deposit with low minimum deposits, Remittance to any BC customer,
Micro Credit and General Insurance.
The BC model allows banks to provide door-step delivery of services especially ‘cash in – cash
out’ transactions at a location much closer to the rural population, thus addressing the last-mile
problem.
Who can act as BCs?
The RBI has provided a long list of entities and persons who can act as BCs. Initially the entities
permitted to act as BCs included registered entities like NGOs/ MFIs. Later, the list expanded to
include individuals like retired bank employees, retired teachers, retired government employees
and ex-servicemen, individual owners of kirana / medical /Fair Price shops, individual Public Call
Office (PCO) operators, agents of Small Savings schemes of Government of India/Insurance
Companies, individuals who own Petrol Pumps, authorized functionaries of well-run Self Help
Groups (SHGs) which are linked to banks. Any other individual including those operating
Common Service Centres (CSCs) are also allowed to act as BCs of banks.
Though the BC model was attractive it has not delivered effectively because of the many
shortcomings associated with it. Firstly, banks have imposed higher restrictions on operations of
BCs. Secondly, salaries of BCs were very low compared to the physical work they have to do to
cover the distant areas. The JDY also heavily relies the operations of BCs for continuation of
account activities by the village people who started the account as part of the programme.

Page 120 of 131

 Topic – 113
Anubhuti Programme
Based upon the findings of Employee Engagement Survey “Voice of Barodians”, Bank is taking
many initiatives. Baroda Anubhuti Programme is a key initiative to improve Employee Experience
of working in the Bank. Under this umbrella in initial stage Bank has started following five
initiatives…
➢ Employee of the month
➢ Spot Recognition – Creating Wow moments
➢ Zero Hour ( Fun Hour) at Branches/Offices
➢ Compulsory local community service / Social Activities by employees
➢ Anubhuti Workshop

Topic – 114
Compliance Culture – Boon or Bane to Banking Business
Every Bank differs in their operation methodology, but one thing they have in common is a
Compliance Department. It is the Bank's Internal Police Force. It is the unit that ensures that a
Bank complies with applicable laws, regulations and rules. Compliance rules and laws generally
cover matters such as observing proper standards of market conduct, managing conflicts of
interest, treating customers fairly and ensuring the suitability of customer advice. Hence, it plays
an essential role in helping to preserve the Integrity and reputation of the bank.

Benefits / Heart of Banking Business

➢ Reduce Your Legal Risks
➢ Avoid Reputational Risk
➢ Avoid Future Costs
➢ Build Trust with Your Customer
➢ Engage with Your Employees

Compliance should be part of the culture of the organization. It is not just the responsibility of
specialist compliance staff and it should be in the blood of each and every staff members. Failure
to consider it, will impact on its shareholders, customers, employees and the markets, which may
result in significant adverse publicity and reputational damage, even if no law has been broken.

For details on Compliance Culture of BoB

kindly refer to :- BCC:BR:112:356 Dt. 19.06.2020

Page 121 of 131

 Topic – 115
Offsite Compliance Reporting and Monitoring System
(OCRMS)
For details on OCRMS kindly refer to :- BCC:BR:113:6 Dt. 02.01.2021

CERMO+ Next
(Compliance Certification and Monitoring System)
Objectives :
• Acts as Knowledge base for all the updated regulations that need to be complied by an
organization.
• Increases Awareness among users on the compliance that need to ensured.
• Platform for branch heads to highlight the areas of Non Compliance.
• Bring to the attention of the Regional Office and Head Office on the obstacles faced at the
Branch level.

Topic – 116
Targeted Long Term Repo Operations (TLTRO)
RBI to extend TLTRO to 26 sectors: The RBI has decided to bring the 26 stressed sectors
identified by the Kamath Committee within the ambit of sectors eligible under on-tap Targeted
Long-Term Repo Operations (TLTRO).

For details kindly refer to :

[Link]
[Link]

Page 122 of 131

 Topic – 117
Pre Paid Cards
BoB INR prepaid card products can be categorized broadly into two categories
a) Reloadable
b) Non-reloadable
We currently offer Baroda RuPay Gift card under Non reloadable card and Baroda RuPay
General Purpose Reloadable card under reloadable variant. Both can be in Physical or
Virtual form

Salient Features of Gift Card

• Can be purchased by both customers and Non customers of Bank
• Available as both Physical and Virtual variant.
• Card is a RuPay Platinum Mag stripe card.
• Immediate activation and ready to use on real time basis
• Card will be valid for a period of one year from the date of activation.
• Card is Non Reloadable in nature and is to be destroyed after exhausting the limit on the card
• Maximum amount that can be loaded on to the card is Rs.10, 000 and
minimum load amount is Rs.500.
• Can be used at all RuPay accepted E Com and POS terminals.
• ATM withdrawal is not allowed.
• Cardholder will be intimated for all transactions on registered mobile number through SMS
• Retail users can purchase up to 10 gift cards in a year in both physical
and virtual forms.
• Corporate customers can purchase any number of cards in any form either
physical or virtual

Salient Features - BGPRC

• Can be purchased by both customers and Non customers of Bank.
• Card is a RuPay Platinum EMV Chip card.
• Immediate activation and ready to use on real time basis
• Card will be valid for a period of minimum three years from the date of activation or the date
printed on the card whichever is earlier.
• Loadable : Minimum Rs 100 and Maximum amount Rs.1,00, 000 at a time
• Card is Reloadable in nature and can be reloaded any number of times, within the overall limit
• of the card i.e. balance in the card cannot be more than 1 Lack at any point of time.
• Card can be used at all RuPay accepted E Com and POS terminals and ATM machines.
• ATM withdrawal is allowed.
• Cardholder will be intimated for all transactions on registered mobile number through SMS
• A Retail user can purchase only one card i.e. there can only be one active card
with a person at any given point of time. If the card is lost or damaged, same will
be replaced on the ID.
• Corporate customers can purchase any number of cards subject to Full KYC

Page 123 of 131

 Topic – 118
Baroda Defence Salary Package
New SB Scheme - Baroda Defence Salary package SB A/c –SB186 with 3 propositions :
1) Baroda Military Salary Package
2) Baroda Central Forces Salary Package
3) Baroda Police Forces Salary Package

Some of the USP’s of this scheme are:

➢ Free Personal Accidental Insurance (PAI) offering as under
• Baroda Military Salary Package- Rs.50 lakhs (off duty/retired-Rs.40 lakhs)
• Baroda Central Forces Salary Package-Rs.43.75 lakhs (off duty/retired – Rs.35
lakhs)
• Baroda Police Forces Salary Package-Rs.37.50 lakhs (Off Duty/retired- Rs.30
Lakhs)
➢ Air Accidental Insurance Cover for active defence Personals is Rs.100 lakhs
➢ No minimum balance
➢ Free Cheque books, NEFT / RTGS / DD, SMS Alert,
➢ Free Cash withdrawal from Any Bank’s ATM
➢ Lifetime free VISA Platinum Debit card and Credit cards
➢ Discount up to 50% on Locker rentals
➢ 100% waiver on Processing charges on retail loans like HL,EL,AL,ML,PL
➢ 100% waiver in Demat Annual Maintenance Charges
➢ 75% waiver on issuance charges for Gift /Travel card

For details kindly refer to :- BCC:BR:112:685 Dt. 10.11.2020

Page 124 of 131

 Topic – 119
BoB - Employee Assistance Program
As one of the endeavours towards better emotional wellness of employees, an announcement was made
by our MD & CEO, Shri. Sanjiv Chadha on the occasion of Bank's Foundation day on 20.07.2020, to
launch an Employee Assistance Program in our Bank for introducing a counselling service for our
employees.

Employee Assistance Program is being implemented on pilot basis in Mumbai Zone and BCC Mumbai.
A view will be taken to extend the program to other Zones after reviewing the effectiveness and success
of the program.

For this purpose, Bank has engaged a reputed and well established Employee Assistance Service
Provider, M/s EAP India Pvt Ltd to support our employees in their well-being in work place as well as
personal life by providing psychological counselling services, which are purely CONFIDENTIAL to the
counsellor and the employee.

Our employees and their dependent family members (Spouse & Children) will be entitled for -03-
sessions of professional counselling services by EAP India, the charges for which shall be borne by the
Bank. Employees may seek the EAP services for resolving any matters affecting their personal, social and
work life in an adverse manner, such as-

➢ Anxiety/ Depression/ Stress/ Insecurity/ Fear

➢ Loneliness/ Isolation/ loss of Self-confidence & self- esteem
➢ Inter-personal relationship and communication
➢ Family problems/ Personnel issues/ Extreme grief
➢ Overwhelming traumatic circumstances which an employee is unable to cope up with
➢ Handling Physical illnesses/ Parenting challenges
➢ Motivation /Concentration/ Personal development / Work-life balance
➢ Overcoming substance abuse or addiction including smoking, drugs, etc.

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 Topic – 120
10 Minutes Banking Experience

❑ The modern day customers' expectations from banking have evolved drastically. Data and
smart phone explosion in India has conditioned customers to seek for fast and convenient
banking experience. And the customers' first touch point of banking begins with the "on-
boarding experience".

❑ In our constant pursuit to refine customer's on-boarding experience and capture their
expectation of "fast" and "convenient" banking, bank has introduced "10 minutes
banking" Tab banking.

❑ For today's digital-savvy customers, bank recognizes the importance of providing best in
class digital tools for their on-boarding, at the time and place of their convenience. Our
qualified staff opens the customer's account through tab, instantly provides the account
number and registers them for the bank's mobile banking application m-Connect+. They
further assist the newly an boarded customers to download and activate bank's mobile banking
application m-Connect+

Key features
➢ This is a 100% paperless process for Instant account opening and
activation, enabling our customers to choose and enjoy the benefits of a wide
array of Savings Product.

➢ Currently Resident Individuals singly as well as jointly are eligible to open the
accounts. Subsequently, eligible customers for Mobile Banking are also assisted
for activating Mobile banking application m-Connect+.

➢ They can enjoy 170+ services on the app from fund transfers, balance enquiries,
all utility bill payments, mobile/DTH/ Fastag recharge, PPF, insurance, loans, and
wealth management to enhanced security features like setting debit card controls.
Further customers can also enjoy a host of value added services like chequebook
request, debit card controls, etc. The entire process has a TAT of 10 minutes.

➢ An exhilarating "10 minute banking" experience, right from account opening

at his contact point to activating m-Connect+, leaves a long lasting
impression on the customer.

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 Topic – 121
Baroda Cash Management Services – Baroda Digi Next
➢ To meet the requirements of Corporate, Government Department, Institution and
Societies, Bank of Baroda has launched Baroda Cash Management Services (BCMS)
for managing their Receivables, Payables and Liquidity.
➢ Cash Management services provides services like Cash Pickup, Cheque Pick Up, Bulk
Payment using NEFT/RTGS/Internal Fund Transfer, Collection using NEFT/RTGS/IMPS
and Cash Deposit and NACH mandate processing.
➢ It can be integrated with SAP and Tally bringing efficiencies in your payments to vendors,
salary payments and administration expenses. It also allows bulk payments and scheduling
of payments. Some of the benefits of our payables management solution are mentioned in
next sections.
➢ Baroda Cash Management system (BCMS) comes with following product for doing
business with ease.
➢ Payable Management
➢ Receivable Management
Liquidity Management
➢ Host to Host Connectivity
➢ Security and Control

The BCMS Advantage

➢ Lower Interest Costs:
Receive funds in your main account with the bank with a minimum transit time and reduce

interest costs.
➢ Better Accounting and Reconciliations:
Get detailed information on cheque deposited as per need of the corporate.
➢ Achieve Overall Operational Convenience
Conveniently run banking operations through centralised portal and better manage your
cash positions. Exercise better control over different business segments.

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 Topic – 122
Initiatives Taken By Bank For Staff Members - Covid

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Page 129 of 131
 Topic – 123
Covid Vs Banks / Fallout of Covid on Banks

➢ Banks will need to enhance resilience across capital, technology, and talent, as
they confront potential new challenges in the short term. Longer term, banks
should accelerate and amplify their transformation efforts across the enterprise.

➢ Banks can institutionalize the lessons learned during the pandemic. These may
include operating with agility, flattening hierarchies, speeding up decision-making,
empowering employees, and introducing flexible workplaces and workforces.
Future success may very well hinge on how well these lessons have been
internalized and implemented.

➢ COVID-19 not only accelerated digital adoption, but it has also been a litmus test for
banks’ digital infrastructures. Institutions that made strategic investments in
technology came out stronger, but laggards may still be able to leapfrog if they take
swift action to accelerate tech modernization. Across the board, digital inertia has
faded, and more banks are pursuing technology-driven transformation, especially to
core systems.

➢ To fully realize the digital promise in the front office, banks can elevate customer
engagement by deploying an optimal mix of digital and human interactions,
intelligent use of data, novel partnerships, and compelling service delivery models.

➢ As banks adapt to the economic realities of 2021, they may need to make some
hard decisions on the optimal talent models. But at the same time, they should
maintain a focus on employee well-being and productivity as the pandemic-induced
stress on the workforce continues.

➢ Banks have an opportunity to become purpose-driven global leaders. Given their

unique and vital role in the global economy, banks should be at the forefront of
leading social change and mitigating climate risk by reallocating capital,
enhancing risk frameworks, providing greater transparency, and improving data
and reporting standards.

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 Topic – 124
Reschedule / Rephasement / Restructure

Topic – 125
Other Important Topics
➢ Privatization of PSBs
➢ Home Loan & Auto Loan & Covid Loans
➢ Gold Loan : BCC:BR:112:617 Dt. 15.10.2020
➢ All Campaigns
➢ Important Ratios like Current Ratio, DER, DSCR
➢ Newspaper Headlines of the D-Day (Interview Date)

Dear Barodians,
Above all… Don’t speak from Circular… Give logical viewpoint

Interview Questions Differ from Person to Person, For Sure...

If you don’t know the answer…

Be calm and say politely “I Don’t Know” with Confidence
(Remember… you are not supposed to know everything on earth)

Your knowledge has been tested through Examination

Interview Board will access your ATTITUDE and APTITUDE

Wish you all the very best…!

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