retail banking9

8/8/2019 Retail Banking9

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Submitted to: Prof. A.Gopalakrishna

Submitted by:Ankita joshi.

09BS0000304

ASSIGNMENTRetail Banking


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HDFC BANK-

TWO ASSETS WITH HDFC BANK

1. Fixed deposits

Features & Benefits

Potential to earn compound interest by reinvesting the principal amount along withthe interest earned during the period.

Flexibility in altering period of deposit of renewal deposit, maturity and paymentinstructions, principal amount and rollover mode before maturity of the rolloverdeposit.

Higher rate of interest on Fixed Deposits for Senior Citizens.

Eligibility

The following can apply for a Regular Fixed Deposit

Resident Individuals

Hindu Undivided Families

Sole Proprietorship Firms

Partnership firms

Limited companies

Trust Accounts

DOMESTIC TERM DEPOSITS

Deposits Below Rs.15 Lacs

Deposits of Rs.15 Lacs to less thanRs. 1 Cr

For Deposits Below Rs.15 Lacs

PeriodInterestRate (perannum)

**Senior CitizenRates (perannum)

EffectiveFrom

7 - 14 days 3.00% 3.50% Jul 30, 2010

15 - 29 days 3.25% 3.75% Oct 11, 2010


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30 - 45 days 4.00% 4.50% Oct 11, 2010

46 - 60 days 3.75% 4.25% Jul 30, 2010

61 - 90 days 4.50% 5.00% Jul 30, 2010

91 Days to less than 6 months1 day

5.50% 6.00% Oct 11, 2010

6 months 1 day - 6 months 15days

5.75% 6.25% Jul 30, 2010

6 months 16 days 6.50% 7.00% Oct 11, 2010

6 months 17 days - 9 months15 days

6.25% 6.75% Oct 11, 2010

9 months 16 days 6.75% 7.25% Oct 11, 2010

9 months 17 days - 1 year 6.50% 7.00% Oct 11, 2010

1 year 1 day - 1 year 15 days 7.00% 7.50% Oct 11, 2010

1 year 16 days 7.25% 7.75% Oct 11, 2010

1 year 17 days - 2 years 7.00% 7.50% Oct 11, 2010

2 years 1 day - 2 years 15days

7.25% 7.75% Oct 11, 2010

2 years 16 days 7.50% 8.00% Jul 30, 2010

2 years 17 days - 3 years 7.25% 7.75% Oct 11, 2010

3 years 1 day - 5 years 7.50% 8.00%February19,2010

5 years 1 day - 8 years 7.50% 8.00%February19,2010

8 Year 1 Day - 10 Years 7.50% 8.00%February19,2010

Eligibility


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The following persons and institutions can apply for thesebonds:

An Individual, not being a Non Resident Indian

y In his or her individual capacity or

y In individual capacity on joint basis or

y In individual capacity on anyone or survivor basis or

y On behalf of a minor as father/mother/legal guardian

A Hindu Undivided Family

A Charitable Institution

y "Charitable Institution" to mean a company registered under Section 25 ofIndian Companies Act 1956 or

y An institution which has obtained Certificate of Registration as a Charitableinstitution in accordance with a law in force or

y Any institution which has obtained a certificate from an Income TaxAuthority for the purpose of Section 80 G of the Income Tax Act, 1961

y Any institution notified by the Central Government under clauses (ii) or (iii)

of Sub-Section (1) of Section 35 of Income Tax Act, 1961

"University". By university, it means a university established or incorporated by aCentral, State or Provincial Act, and includes an institution declared under Section3 of the UGC Act, 1956 (3 of 1956), to be a university for the purposes of that Act.

TWO LIABILTIES WITH HDFC BANK

1. PERSONAL LOAN

Features & Benefits

Borrow up to Rs 15,00,000 for any purpose depending on your requirements.

Flexible Repayment options, ranging from 12 to 60 months.

Repay with easy EMIs.

One of the lowest interest rates.

Hassle free loans - No guarantor/security/collateral required.


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Speedy loan approval.

Convenience of service at your doorstep.

Customer privileges

If you are an HDFC Bank salary account holder, we have a special offer

for you

If you are an existing Auto Loan or Home Loan customer with a clear

repayment of 6 months or more from any of our approved financiers or us,you can get a hassle free personal loan (without incomedocumentation).

If you are an existing HDFC Bank Personal Loan customer with a clearrepayment of 9 months or more, we can Top-Up your personal loan

Credit Shield

In case of death or total permanent disability of the loanee, the loanee/nomineecan avail of the Payment Protection Insurance (Credit Shield) which insures theprinciple outstandings on the loan upto a maximum of the loan amount.Principleoutstanding is defined as the amount of loan outstanding (not including anyarrears in payment or interest thereon) at the Date of Loss,having accounted forpayments made and interest accruing as determined in the Policy. Hence,theamount covered does not include any principal added because of non - paymentof EMI and also will not include interest/ accrued charges.*

Personal accident cover

In order to ensure that your family is taken care of we also off er a PersonalAccident cover of Rs 200000 at a nominal premium* Premium will be charged forboth these products which will be deducted from the loan amount at the time ofdisbursal .A transaction fee of Rs.750 will also be deducted at the time ofdisbursal. Please note that service tax @ 10% and Education cess of 3% will alsobe charged.

Eligibility & Documentation

Salaried Individuals,

Self employed (Professionals)

Self Employed (Individuals)

Self Employed (Pvt Cos and Partnership Firms)


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Eligibility Criteria

Minimum age of Applicant: 21 years Maximum age of Applicant at loan maturity: 60 years Minimum employment: Minimum 2 years in employment and minimum 1 year

in the current organization Minimum Net Monthly Income: Rs. 10,000 per month (Rs. 15,000 in Mumbai,

Delhi, Bangalore, Chennai and Hyderabad & Rs. 12,000 in Calcutta,Ahmedabad and Cochin)

Documents required:

Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence) Address Proof (Ration card Tel/Elect. Bill/ Rental agr. / Passport copy/Trade

licence /Est./Sales Tax certificate) Bank Statements (latest 3 months bank statement / 6 months bank passbook) Latest salary slip or current dated salary certificate with latest Form 16

2. HOME LOANS

Features & Benefits

Home Loan - Home loans for individuals to purchase (fresh / resale) or constructhouses. Application can be made individually or jointly. HDFC finances up to 85%maximum of the cost of the property (Agreement value + Stamp duty +Registration charges) based on the repayment capacity of the customer.

Home Improvement Loan - HIL facilitates internal and external repairs and otherstructural improvements like painting, waterproofing, plumbing and electric works,ti ling and flooring, grills and aluminium windows. H DFC finances up to 85% of thecost of renovation (100% for existing customers) subject to market value of theproperty..

Home Extension Loan - HEL facilitates the extension of an existing dwelling unit.All the terms are the same as applicable to Home Loan.

Land Purchase Loan - Be it land for a dream house, or just an investment for thefuture, HDFC Land Purchase Loan is a convenient loan facility to purchase land.HDFC finances up to 85% of the cost of the land (Conditions Apply). Repaymentof the loan can be done over a maximum period of 15 years.

Choose from Fixed Rate or Floating Rate with options to structure your loan asPartly Fixed or Partly Floating.

Flexible repayment options to suit your individual needs.

Loan cover Term Assurance Plan - HDFC Standard Life Insurance CompanyLtd. offers an insurance plan*, which is designed to ensure that life's uncertaintiesdo not affect your family's interests and your precious home. LCTAP provides alump-sum payment on the unfortunate demise of the life assured.


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This pure risk plan is designed in a way that the cover decreases as you repayyour home loan making it a low cost premium insurance plan.*Insurance is the subject matter of solicitation.

Automated Repayment of Home loan EMI - You can give us standinginstructions to repay your Home Loan EMIs directly from your HDFC Bank Savings

Account, thus, saving you the trouble of procuring, signing and tracking post -datedcheques.

HDFC also offers In-house scrutiny of Property documents for your completepeace of mind.

Customer privileges - If you are an existing HDFC Home Loan customer, youcan avail of other loans (such as Personal Loans, Car Loans, Two-wheeler Loansand Loan against securities) at lower interest rates.

Home Loan PLR for eCBoP Floating rate Loans

Home Loan PLR for eCBoP floating rate loans has been changed in 2008/2009 asfollows

1st July 2008 0.75% + Increase

1st August 2008 0.75% + Increase

1st December2008

0.50% - Decrease

Net Effect 2008 1.00% +Net Increase of 1.00% has been applied w.e.f 1stDecember 2008

6th August 2009 0.25% - Decrease of 0.25% w.e.f September 09 EMI

eCBoP Home Loan Fees & Charges

Description of Charges Ecbop Home Loan

Foreclosure charges

No prepayments allowed in first 6 months6 months - 5 years - 1.5% of original loan amount5 years -10 years - 0.75% of original loan amount> 10 years - No closure fee

For Gold Category


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6 months - 5 years - 2% of original loan amount> 5 years - No closure fee

eBOP customers :Loan repaid from own sources - no FC chargesLoan repaid from other sources - regular FCcharges.

Charges for late payment ofEMI

2% per month

Cheque swapping charges Rs 500/-

Bounce Cheque Charges Rs. 500/-

Duplicate Statement Charges(per statement)

Rs 100/- per page, Maximum Rs 300/-

Issue of Duplicate ProvisionalInterest Certificate

Rs. 300/-

Issue of Duplicate InterestCertificate

Rs. 300/-

Duplicate Balance Certificate Rs. 300/-

Issue of AmortizationSchedule (Duplicate)

Rs. 300/-

Switch from Variable to Fixed Not Applicable

Switch from Fixed to Variable Not Applicable

Photocopy of Documents Rs. 500/-

Pls note that all the above services attract service charges, as applicable.

ICICI BANK

ASSETS

1. FIXED DEPOSIT

y Wide range of tenures.y Choice of investment plans.y Partial withdrawal permitted.y Safe custody of fixed deposit receipts.y Auto renewal possible.y Loan facility available.


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Features

You can invest in our Fixed Deposit for as long as you wish between 7 days to 10years.

All fixed deposits come with a set choice of investment plans. Fixed Rate Deposit

accounts also provide Fixed Loans. Re-investment Fixed Deposit rates do notchange but work like a Recurring Debit Account transaction. In other words, Re -investment Plans are compounded over traditional deposits and hence are morelucrative over different time periods.

Benefits

Fixed Deposits at ICICI Bank comes with nomination facility. We also offer onlineaccess to your Fixed Deposits through our Internet Banking channel. InternetBanking at ICICI Bank allows you to connect your Credit Card, Loan and your FixedDeposit with your savings account.

In re-investment deposits, the interest is compounded quarterly and reinvested withthe principal.

Benefits

y A wide range of tenures, ranging from 7 days to 10 years, to suit yourinvestment plan.

y Partial withdrawal is permitted in units of Rs 1,000. The balance amount earnsthe original rate of interest.

y

Safe custody of your fixed deposit receipts.y Auto renewal is provided.y Loan facility is available upto 90% of principal and accrued interest.y Choice of two investment plans: Traditional or Reinvestment.

Traditional ReinvestmentInterest payable monthly and quarterly asper your convenience.

Interest is compounded quarterly andreinvested with principal amount.

Maturity period ranges from 7 days to 10years.

Maturity period ranges from 6 months to10 years.

Eligibility

y Resident Indian.

Documentation

Identity proof :


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y Passporty PAN cardy Voter ID cardy Driving licencey Government ID cardy Photo ration cardy Senior citizen ID card

Address proof :

y Passporty Telephone billy Electricity billy Bank Statement with Chequey Certificate/ ID card issued by Post office

* Any other Identity proof or Address proof document can be submitted, subject tothe Bank's satisfaction.Note:

y Please produce the original document(s) for verification & a photocopy ofeach document.

y Please fill the form in CAPITAL LETTERS using Black ink.y Please countersign in case of any overwriting.y Please avail of the nomination facility.

* Mandatory to provide Permanent address and telephone number.

or Domestic Deposits Below Rs.15 Lacs

Rates of Interest (%p.a.) w.e.f Oct 06, 2010

Maturity Period GeneralSenior

Citizen **

7 days to 14 days 3.75 4.2515 days to 29 days 3.75 4.25

30 days to 45 days 3.75 4.25

46 days to 60 days 3.75 4.25

61 days to 90 days 4.25 4.75

91 days to 120 days 5.75 6.25

121 days to 184 days 5.75 6.25


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185 days to 210 days 6.25 6.75

211 days to 269 days 6.25 6.75

270 days to less than1 year

6.50 7.00

1 year to 389 days 6.75 7.25

390 days 7.25 7.75

391 days to 589 days 6.75 7.25

590 days 7.50 8.00

591 days to less than

2 years6.75 7.25

2 years to 789 days 7.50 8.00

790 days 7.75 8.25

791 days to 989 days 7.50 8.00

990 days 8.00 8.50

991 days to less than3 years

7.50 8.00

3 years to less than 5

years8.00 8.50

5 years upto 10 years 8.00 8.50

Tax Saver FD 80C (5

year) Upto Rs. 1 lac8.00 8.50

2. SAVING BONDS

Savings Bond

Basic Features

The main features of these bonds are as follows:

Savings Bonds (Taxable),

Maturity Period 6 years


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Rate of Interest 8.0% per annum (Taxable)

Risk Attached Low Risk

Minimum Investment Rs. 1,000/-

Maximum Investment Unlimited in multiples of Rs.1,000/ -

Collateral Facility Available

Overall Liquidity Not tradable

Date of Issue Date of realization of the funds

Savings Bond -Payment of interest8% Savings Bonds (Taxable), 2003

y Non-cumulative (half yearly): Interest to the holders opting for non -cumulative bonds will be paid from date of issue up to 31st July/31st Januaryas the case may be and thereafter half yearly for period ending 30th June/31st December on 1st August and 1st February.

y Cumulative Interest at the rate of 8% per annum compounded with half

yearly rests and will be paid to the investor on maturity along with principal.(the maturity value of the bonds shall be Rs 1601.00/ - for every Rs1000/-)(subject to TDS as applicable).

Tax Concessions

8% Savings Bonds (Taxable), 2003

y Interest on the Bond will be taxable under Income-Tax Act,1961.y The bonds will be exempt from Wealth-Tax under the Wealth-Tax Act, 1957.

Eligibility

The eligibility criteria to obtains these bonds is as follows:


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y 8% Savings Bonds (Taxable), 2003 As an individual:

o Who is not a Non-resident Indiano In his or her individual capacity oro On joint basis, oro Anyone or survivor basis, oro On behalf of a minor as father/mother/legal guardian.

As a Hindu Undivided Family

As an Institution

y Charitable Insititution' under section 25 of the Indian Companies Act 1956.y Institution obtained Certificate Of Registration as charitable institution .y Any Institution which obtained certificate from Income Tax Authority

U/S 80G of Income Tax Act ,1961.

"UNIVERSITY" established or incorporated by Central, State or ProvincialAct, U/S 3 of University Grants Commission Act, 1956

(3 of 1956) .

Nomination8% Savings Bonds (Taxable), 2003

y This facility will be available for Individual investment for sole holder orsurviving holder basis. Nomination can be done in FORM B(TB-4).

y This facility will not be available for joint holdings and minor investment.

TWO LIABILITES WITH ICICI BANK

1. HOME LOAN

Eligibility

Home Loans can be availed by Resident Indian whether Salaried or Self -Employedand also by Non- Resident Indian who are Salaried. For resident Indians thefollowing are the eligibility norms:


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y You must be at least 21 years of age when the loan is sanctioned.

y The loan must terminate before or when you turn 65 years of age or beforeretirement, whichever is earlier.

y You must be employed or self-employed with a regular source of income.

Loan Amount

With ICICI Bank Home Loans, you can get a home loan suited to your needs. Thehome loan amount depends on your repayment capability and is restricted to amaximum of 80% of the cost of the property or the cost of construction as applicable. A number of factors are taken into account when assessing your repaymentcapacity. Repayment capacity takes into consideration factors such as income, age,qualifications, number of dependants, spouse's income, assets, liabilities, stability,continuity of occupation and savings history.

However, there are ways by which you can enhance your eligibility.If your spouse isearning, put him/her as a co-applicant. The additional income shall be included toenhance your loan amount. In case of any co-owners they must necessarily be co-applicants. The final amount to be sanctioned will depend on your repaymentcapacity. However, what you ultimately are entitled to will have to conform within thelimits fixed for each loan. Also, when the company looks at the total cost, registrationcharges, transfer charges and stamp duty costs are included.

Documents required for the Sanctioning of Home Loan

ICICI Bank, offers attractive interest rates and unbeatable benefits to ensure that youget the best deal without any hassles. Keeping your convenience in consideration,

we ask you for minimal mandatory documents for the sanctioning of your LoanAgainst Property. We require the following documents to sanction your Loan AgainstProperty:

y Duly Completed Application Form

y Photograph

y Fee cheque

y Photo Identity Proof

y Signature Verification Proof

y Residence Address Proof

y Property documents as required

Document specific for Salaried

y Last 3 months' salary slipsy Form 16y Bank Statement for last 6 months from salary accounty Repayment details on any existing loans or loan closure letter


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Document specific for Self Employed

y Income Tax Return / Computation of Total Income / Auditors Report / BalanceSheet / Profit & Loss Account certified by Chartered Accountant for last 2years (3 years for Home Equity) (both for business and personal of

partners/directors)y Bank Statement for last 6 months from operating accounty Repayment details on existing loans or loan closure lettery Board Resolution in case of a companyy Proof of existence of the business entityy Proof of Office Addressy Photo Identity Proof, Residence Address Proof, Signature Verification must be

provided for all the main partners / directors

2. PERSONAL LOAN

Personal Loans for all your financial needs

Thinking of renovating your house? Yearning to buy a new laptop? Need financialassistance for marriage-related expenses or for your child's higher education? AnICICI Bank Personal Loan is your one-stop-shop for fulfilling all your financialaspirations!

Key Benefits of ICICI BankPersonal Loan

yLoan up to Rs. 10 lakhs

y No security/guarantor requiredy Faster processing.y Minimum documentationy Attractive rates of interesty Flexible repayment option of 12 -48 months

ICICI Bank may, at its sole discretion, utilise the services of external serviceprovider/s or agent/s and on such terms as required or necessary, in relation to itsproducts.

Eligibility

You can avail of an ICICI Bank Personal Loan if you have an ICICI Bank salaryaccount and if you meet the following criteria:


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Criteria* Salaried

Age 25 yrs. - 58 yrs.Net Salary Net monthly income - Rs. 20,000 p.m.Eligibilty Employees of Public Ltd. companies, Private

Ltd. . companies,Government companies or MNCs.

Years in total job /profession

2 Year

Years in current residence 1Year

Documentation

ICICI Bank provides you with personal loan to fulfill any of your desires withminimum documentation:

Documents ( Pre Sanction)

Salaried

1) Proof of Identity (any one) Passport / Driving License / Voters ID / PAN Card

2) Proof of Residence (any one) Ration Card / Utility Bill / Passport / LIC PolicyReceipt

3) Latest 3 months Bank Statement (where salary/income is credited)

4) Salary slips for last 2 months

ANSWER QUESTION NO- 2

Different types of payment settlement products of banks


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Electronic Clearing Services - debits and credits

Electronic Funds Transfers and Special Electronics funds transfer

Real Time Gross Settlement System (RTGS)

Cheque Truncation

NEFT

centers offering MICR clearing

Introduction of High Value Clearing at additional centers

CBS

MOBILE BANKING

Benefits to banks

Benefits of RTGS

Real-time Payment Settlement: Payments settled in real time on a

transaction-by-transaction basis, as soon as they are accepted by the system.

No Credit Risk :- There is no credit and settlement risk involved in RTGS

system for receiving participant as each payment transaction is settled

instantly.

Predictability of Cash Flows:- RTGS facilitates predictability of cash flows as

customers know when their accounts will be debited or credited.

Benefits to Economy : The instant finality of payments ensures fast, secure

and irrevocable settlement of major business and finan cial market

transactions

The Govt. Departments can also be credited through EFT from various banks.

Some Government Bodies like DGFT receive license fees from lakhs of

exporters, which can be done through EFT.

The analogy can be extended to pvt. Compa nies which receive payments

from lakhs of dealers/franchisees.

The system provides opportunity to the bank to attract new potential

customers

Enhances customer satisfaction


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Provides better network and increased turnover

Enhances customer base to the bank

Brings high net worth customers in the bank

Creates a brand name and popular image for the bank

Increases income of the bank

This may increase the chances of relationship banking and thereby retaining

the customers

Reducing existing costs and generating new income:

Benefits to the customers

y Provides convenience to the customers

y The risk factor is avoided

y Cross border fund transfer

y Quick access to the accounts

y Access to credit

y Grace period

y Online functionality

y Better record keeping

y Innovation

y Participation in the global economy

y Consumer choice

y It also enhances a sense of financial discipline to customers

y Almost no time elapsed in settling dues.

y No chance of defaults and errors in deposits by bank employees.

y Waiting time standing in a queue is eliminated.

y Payment can be settled not only in bank hours but 24x7.

y On the spot confirmation of payment settlement is received and no need to

confirm with the payment receiver afterwards

y Saves time for the customers etc.

ANSWER QUESTION NO - 3

Modes of creating charge :

- Lien -


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Instrument is called MORTGAGE DEED.

FORMS OF MORTGAGE :

Simple Mortgage Mortgage by condition sale

Usufructuary Mortgage English/legal Mortgage Mortgage by deposit of title deed or equitable mortgage Anomalous mortgage

ANSWER QUESTION NO 4

1. Payment to life insurance corporation amount is 7450 /-

It will be credit to LIC and the amount will be debited to customer x

2. Payable to Mr. y for Rs. 12240/-

It will be credited to account of Mr. Y and the account of Mr. X will bedebited by 12240/-

3. Payable to same bank for a home loan repayment of 6842/ -

The amount will be credited to the banks account by 6842/- and thesame amount will be debited from the account of Mr. X

4. @ 10 oclock in the morning bank receives an income tax attachmentorder for 17268/-

The amount will be credited to the bank

5. @12.30 the bank receives a court order for 6842/ -

The amount will be credited to the bank

If some of the cheques are to be dishonoured, those can be

Payment to LIC, payment to Mr. Y and payment to bank for a home loan repayment

because of other prior liabilities if in case Mr. X has to pay to others or certainpayments which he is obelised to pay.

Payment to LIC, payment to Mr. Y and payment to bank for a home loan repayment

because of other prior liabilities if in case Mr. X has to pay to others or certain

payments which he is obelised to pay.