1.savings bank

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TYPES OF SAVINGS SCHEMES• Saving Account (SB)• Recurring Deposit (RD)• Time Deposits ( 1/2/3/5 – TD)• Monthly Income Scheme ( MIS)• Public Provident Fund ( PPF)• Senior citizen savings scheme ( SCSS)• National Savings certificates ( NSC)

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Small savings schemesSavings Accounts:--

Deposits and withdrawals permitted

every day Rate of interest :-3.5% up to 30-11-

11With effect from 01-12-2011 rate of

interest is 4% per annum.• Minimum Rs. 50/-• Maximum Single A/C:-

Joint A/C:- NO LIMIT

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Recurring Deposit:---• Monthly deposit of fixed Amount for

5 years• Min. of Rs. 10 and multiples of Rs.5/-• Maturity Value for Dn Rs 10/- for

accounts opened on or after 01.12.2011 is Rs 738.62

• 8.4% interest w.e.f 01.04.12• Maximum limit :-No limit.• Pre Matured Closure is allowed after

completion of 3 years4

Time Deposit:-----• 1/2/3/5 yr accounts• Only one deposit in an account• Minimum amount of deposit Rs.200/-

or in multiples of Rs. 200/-• Maximum limit :-No limit.• Joint account is permissible• Pre Matured Closure is allowed.• Interest is compounded quarterly and

paid annually5

TD rate of interest

Period of Deposit

Rate of interest (Quarterly compounded)w.e.f 01.12.2011

Rate of interest (Quarterly compounded)

w.e.f 01.04.2012

1 Year 7.7 8.2

2 Years 7.8 8.3

3 Years 8.0 8.4

5 Years 8.3 8.56

MIS accounts• Period of the account -5 years• Rate of interest will be 8.2% per annum w.e.f

01.12.11, 8.5% w.e.f 01.04.12• Minimum Deposit amount is Rs.1500/-or

multiples of Rs. 1500/-• Maximum.:-Single A/C-4.5 lacs.• Joint A/C—9.00 lacs.

• No Bonus for MIS accounts.• Interest will be paid on the date of opening• Pre Matured Closure is allowed 7

PPF accounts opened with effect from 01-12-2011

• Minimum amount of deposit is Rs.500/- in a financial year and in multiples of Rs.5/-

• Maximum limit of subscription in a financial year shall be Rs 100000

• Rate of interest wef 01-12-2011 will be 8.6% per annum , 8.8% w.e.f 01.04.12

• Period of account :-15 Years from the end of the year in which account is opened.

• PPF accounts can be continued after maturity 8

(6) Senior Citizen Savings scheme :• Opened by an adult age of 60 years and

above.• Minimum Deposit is Rs.1000/- and in

multiples of Rs.1000/- • Maximum Deposit :-------Rs.15 Lacs.• Rate of Interest:----9% up to 31.03.12• Rate of interest 9.3% w.e.f 01.04.12• Interest will be payable quarterly basis.

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Change of interest rates

Schemes Prior to 1.12.2011 w.e.f 1.12.2011 w.e.f 1.4.2012

SB 3.50 4.0 4.0

RD 7.50 8.0 8.4

MIS 8.00 8.2 8.5

SCSS 9.00 9.0 9.3

1 year TD 6.25 7.7 8.2

2 year TD 6.50 7.8 8.3

3 year TD 7.25 8.0 8.4

5 year TD 7.50 8.3 8.5

PPF 8.00 8.6 8.8

5-NSC 8.00 8.4 8.6

10- NSC - 8.7 8.9

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Exercise 1.1 to 1.3

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Savings schemes available at BOs

• Saving Account (SB)• Below poverty line (BPL) account• Recurring Deposit (RD)• Time Deposits ( 1/2/3/5 – TD)

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Process flow

• Opening of account• Subsequent deposits• Withdrawals• Closure• Transfer• Misc (issue of duplicate pass book)

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Forms• SB-3 card ( Application) • SB-103 ( Pay in slip) • SB-7 ( withdrawal form)• SB-7(a) ( Closure form) • SB-10 (b) (Transfer application form) • SB-5 ( pass book)

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Documents

• SB- Journal• RD – Journal• TD - Journal• Specimen Signature Book

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What is Money Laundering?....People want to legitimize the ill – gotten money

through money laundering which is gained through criminal means such as Illegal arms sales, Smuggling, Prostitution rings, Embezzlement, Insider trading, Bribery, Computer frauds, Fake Currency Notes circulation, Drugs trafficking etc.

• The money so generated is tainted and is in the nature of ‘dirty money’.

• Processing of conversion of such proceeds of crime, the ‘dirty money’ to make it appear ‘Legitimate Money’ is Money Laundering

Actions which can be taken against persons involved in Money Laundering?

• Attachment of property. The attached properties may be confiscated and disposed off.

• Persons found guilty are punishable with imprisonment for a term which shall not be less than three years but may extend up to seven years and shall also liable to a fine up to Rs.5 lakhs.

What is PMLA and its Objective?

• Prevention of Money Laundering Act 2002.• It has come into effect from 1st July 2005

amended on 1.6.2009• It extends to whole India including Jammu &

Kashmir.• To prevent money- laundering and to provide

for confiscation of property derived from, or involved in, money – laundering.

Know Your Customer• Purpose

• To prevent money laundering and combating of financing in terrorism under PML Act-2002 and CFT

• Deposits are classified under three categories• (1) Monthly average balance below Rs.50000/-

It includes• (A) (i) All types of accounts opened in their name

• (ii)Accounts opened in the name of minor(s) as guardian• (B) (i) All types of certificates in their name

• (ii) Certificates purchased in the name of minor(s) as guardian

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Know Your Customer• (2) Monthly average balance between

Rs.50,000/- and Rs.10 lakhs• (A) (i) All types of accounts opened in their name

• (ii)Accounts opened in the name of minor(s) as guardian• (B) (i) All types of certificates in their name

• (ii) Certificates purchased in the name of minor(s) as guardian

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Know Your Customer• (3) Monthly average balance above Rs10

lakhs• (A) (i) All types of accounts opened in their name

• (ii)Accounts opened in the name of minor(s) as guardian• (B) (i) All types of certificates in their name

• (ii) Certificates purchased in the name of minor(s) as guardian

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Documents for opening of A/cCategory Documents required for opening A/C

Recent Photograph

Identity Proof

Address Proof

Source of Fund

Physical Verification of address

Category-1 Required Copy of PAN card, Electoral photo ID, Ration Card, Passport, Driving License, ID from Central / State Govt. or PSU

Copy of the any of the documents i.e. Electoral Photo ID, Bank / PO Passbook, Current Electricity Bill, Current Telephone Bill or letter from any recognized authority

Not Required

Not Required

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PPT 5.1.1

Category Documents required for opening A/C

Recent Photograph

Identity Proof Address Proof

Source of Fund

Physical Verification of address

Category-2 Required Copy of PAN card and copy of any one of the documents like Electoral photo ID, Ration Card, Passport, Driving License, ID from Central / State Govt. or PSU

Copy of the any of the documents i.e. Electoral Photo ID, Bank / PO Passbook, Current Electricity Bill, Current Telephone Bill

Not Required

Not Required

Documents for opening of A/c

PPT 5.1.1

Category Documents required for opening A/C

Recent Photograph

Identity Proof Address Proof

Source of Fund

Physical Verification of address

Category-3 Required Copy of PAN card and copy of any one of the documents like Electoral photo ID, Ration Card, Passport, Driving License, ID from Central / State Govt. or PSU

Copy of the any of the documents i.e. Electoral Photo ID, Bank / PO Passbook, Current Electricity Bill, Current Telephone Bill

Copy of document proving source from which funds received

Address should be verified from State Govt/ Gram Panchayat / Postman of that area before opening A/c. Also followed in case of Transfer of A/c from other office

Documents for opening of A/c

Opening Of Savings Bank Account…

• If minor of 10 years age , he can open independently

• Minimum deposit Rs. 50/- ordinary account & Rs.500/- for cheque account

• Maximum deposit – No Limit • Rate of interest 3.5 % up to 30-11-11• WEF 01-12-2011 Rate of interest 4% per annum

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• Single account by an adult and by a Minor who is aged 10 years and above.

• Joint account by two or three adults• In case of Joint A/c all the depositor to sign• In case of Minor a/c date of birth and maturity

should be mentioned in application form.

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Opening Of Savings Bank Account

• Customer to present – filled Up Form I (SB-3 card ) – Pay In Slip (SB 103) – 2 specimen signature slip – Cash

• Introducer details is compulsory in SB-3• Customer should furnish the details of witness in

case of nomination27

Opening Of Savings Bank Account

• The following documents are to be submitted compulsorily -– 3 copies of recent photograph– Identity Proof– Address Proof

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Opening Of Savings Bank Account (continued)

• For ID Proof any one of the following accepted– Electoral Photo Identity Card– Ration Card– Passport– Identity card from Central/State Govt or PSU– POSB Identity card– Post Office Identity Card

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Opening Of Savings Bank Account (continued)

• For Address Proof the following be accepted– Electoral Photo Identity Card– Bank or PO Passbook– Current Electricity Bill– Current Telephone Bill– Letter from any recognized authority

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Role of BPM – Opening Of Savings Bank Account

• Scrutiny of form 1 (SB-3) & pay in slip(SB-103).

• Collect cash & Check w.r.t SB 103• Check eligibility for opening of account• See that all information furnished by the

depositor in SB-3 is correct.

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Role of BPM – Opening Of Savings Bank Account

• Prepare following documents– Specimen Signature Book (S S Book)– Issue SB 26 receipt

• Make deposit entry in BO SB journal showing account as new account in remark column along with SB 26 receipt number.

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SB-26 Receipt Book

• It is issued to a depositor who opens SB/RD/TD accounts at BO

• 50 receipts in triplicate in each book• 1st copy given to depositor• 2nd copy sent to Account office along with new

account documents• 3rd receipt will be office copy

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SB-26 Receipt Book On receipt of new a/c pass book from AO, it should

be given to depositor by collecting back SB-26 receipt

It should be pasted along with office copy of SB-26 Acquittance for receipt of PB by depositor obtained

on reverse of SB-26Account number should be noted in SS book, SB

journalDate of delivery of PB is to be noted on SB journal

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Opening of BPL account

• Normal procedure for opening of Savings Bank account should be followed

• In addition to the ID and Address proof prescribed in the KYC norms, a self attested (attested by a Gazetted Officer/Sarpanch/Postmaster in case of illiterate individuals) copy of any document issued by the State/District Authority identifying the individual as member of the BPL household should be taken and attached with SB-3.

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Opening of BPL account

• Documentary proof of BPL household should be attached with SB-3 and a remark in red ink as “BPL” should be recorded in SS Book.

• Remark “BPL” should be recorded in the SB-26, BOSB Journal .

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Exercise 1.4 & 1.5

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Subsequent Deposit• Depositor has to fill up the pay in slip (SB-103)

properly.• Depositor should hand over the cash, SB-103 &

passbook to BPM.• Pass Book & counterfoil of SB-103 should be

handed over to the depositor after completion of the transaction.

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• Minimum amount of deposit Rs. 5/-

• Mode of deposits – Cash, DD, Cheque, Refund Vouchers, Dividend warrant, Interest warrant, Maturity Instrument, Crossed IPO.

• A/c becomes silent if no transaction made during last three financial years

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Role of BPM(Subsequent Deposit)

• Examine passbook and pay in slip (SB-103).• Check the cash tendered with SB-103.• Make entry in following record

– Passbook – BO SB journal

• Return passbook & counter foil to depositor

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SAVINGS BANK --- Subsequent Deposits By Cheque

• Date of deposit is the date of clearance of cheque

• If mode of deposit is cheque, then– The Cheque should be drawn in favor of depositor

or postmaster– For out station cheques clearing charges

collected at following rate• up to Rs. 1000 - Rs. 30/- • above Rs. 1000 and Part - Rs. 3/-• No clearing charges for local cheques

Exercise 1.6 (On subsequent deposit)

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Role of BPM -SB WITHDRAWAL• Examine passbook & SB-7 form• Verify balance with reference to SB journal • Verify/compare the signature on SB-7 with SS

book• Sign below the signature of depositor in SB-7• Make entry in following records

– Passbook – BO SB journal noting the Date of Last Transaction

(DLT) and Date of Next Transaction (DNT) in the previous transaction

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SB WITHDRAWAL– ROLE OF BPM

• Make entry in SB-7 in warrant portion if amount is 5000/ or less than Rs. 5000

• Effect the payment & return passbook• If amount is more than 5000. Issue SB-28 receipt• Forward PB, SB-7 to the A.O. duly entered in

BODA• On receipt of passed warrant of payment from

A.O. effect withdrawal by obtaining acquittance of depositor. Collect the SB-28 receipt 54

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Exercise 1.7 Exercise on Withdrawal

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Receipt For Depositor’s Passbook.(SB-28)

• Whenever the passbook is taken by Post Office for

any purpose and not returned to the depositor

immediately, SB-28 is issued.

• Prepared by BPM

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• BPM should note the following details

– Purpose of collecting the pass book,

– A/C Number, Name of depositor, Balance,

– Probable date of receipt of PB from AO on the back of

depositor’s copy of SB-28,

• When passbook is returned to depositor, acquittance to be

taken in depositor’s copy of SB-28 & it is to be pasted

with the office copy.

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Exercise 1.8 – SB-28

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Role of BPM - Closure of the Account

• BPM should collect application in SB-7A with pass book

• He should check application with pass book and SB Journal

• Compare signature with Specimen Signature book

• Impress date stamp on application side• Issue receipt in SB-28

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Closure of the Account

• Forward passbook and application to account office

• Passbook and passed warrant of payment are received from AO

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Closure of the account

• When depositor calls at PO--enter withdrawal for full amount in pass book and

BO SB journal-note BAT as NIL

• Note remarks ‘account closed’ in red ink in following records– below last entry in pass book and remarks column

of BO SB journal– first and all unused pages of pass book – Specimen Signature book

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Closure of the account

• Pay amount to depositor after getting Acquittance in SB-7A

• Get back SB-28 and file with office copy• Deliver closed passbook to depositor

(Acquittance for closed passbook in SB-7A)• Impress BO date stamp on the SB-7A near

AO/HO date stamp

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Lapsed warrant of payment

• Warrant of payment remaining unpaid after the expiry of 7 days in the Branch office from the date of receipt from AO is treated as lapsed warrant of payment

• It should be returned to AO• If 7th day fall on Sunday or holiday, it should be

paid on the following working day. If it is not paid on that day also, then it should be returned to AO

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Preparation of SB Journal• Entry of opening of account/transaction made

in existing account should be made in the BO SB Journal.

• The column of account number should be left blank in case of new a/cs.

• The new account number is to be noted only after the same is allotted by the AO.

• PR number should be noted in the Remarks column in RED INK for new a/c.

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Preparation of SB Journal

• Note the BAT• Note DLT• Initial the appropriate column• The DNT should be entered when transaction

happens in the account subsequently

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• Exercise 1.9

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SB Account Transfer

• A/C can be transferred from one PO to another without any cost/fee.

• Depositor must fill up the SB-10(b) form & furnish all details properly.

• Depositor must handover SB-10(b) form & passbook to BPM.

• BPM should forward application to AO for further action

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Transfer Of SB Account Procedure

• Depositor to submit application with passbook

• Form SB-10(b) not obligatory• Signature of depositor to tally-otherwise to

be identified

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Transfer Of SB Account– Some conditions

• Transfer o SB account is not permissible after death of depositor

• Silent accounts can not be transferred before revival

• For transfer of Joint Account-all depositors to sign on application

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• Exercise 1.10

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Issue of duplicate pass book

• Issued by departmental SOs & HOs• Application in the prescribed form • Fee Rs.10 (postage stamp)• Depositor to furnish details• BPM to satisfy about identity of depositor

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Issue of duplicate pass book - Role of BPM

• BPM may receive application• Sign the application for identity of depositor in

relevant column• Forward application to AO entered in BODA• Deliver duplicate PB on receipt from AO

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• Exercise 1.11

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