SUMMER TRAINING REPORT

ON
STUDY OF
DEPOSIT SCHEMES OF BANK OF INDIA (SHAHEED UDHAM
SINGH NAGAR BRANCH)

SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD

OF THE DEGREE OF
MASTER OF COMMERCE
AT
PANJAB UNIVERSITY, CHANDIGARH
(Session 2017 – 18)

Submitted To:
DR. PRIYAKA KHANNA
(H.O.D, COMMERCE DEPARTMENT)
Submitted By:
Garima Sapra
Roll No. 5745

KHALSA COLLEGE FOR WOMEN, CIVIL LINES,

LUDHIANA
 ACKNOWLEDGEMENT

No task is single man’s effort. Any job in this world however trivial or tough
cannot be accomplished without the assistance of others. An assignment puts
the knowledge and experience of an individual to litmus test. There is
always a sense of gratitude that one likes to express towards the persons who
helped to change an effort in a success. The opportunity to express my
indebtness to people who have helped me to accomplish this task.
I deem it a proud privilege to extend my greatest sense of gratitude to my
Project Guide DR. PRIYAKA KHANNA (H.O.D. commerce department)
for the keen interest, inspiring guidance, continuous encouragement,
valuable suggestions and constructive criticism throughout the pursuance of
this report.
I would also like to thank MR. JASVIR SINGH ARORA (Branch Manager,
Bank of India, Shaheed Udham Singh Nagar) for their valuable support in
helping me to gain this opportunity of being associated with an organization
of such esteem. Last but not the least; it would be unfair if I don’t express
my indebtness to my parents and all my friends for their active cooperation
which was of great help during the course of my training project.

Garima Sapra

M.com 2nd semester

PREFACE

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 “Experience is the best teacher”

This saying is very well applicable in everyone’s life. Therefore as a student

of commerce it must apply to me also, till date throughout the M.Com.
course at college I have studied many principles, laws, rules, procedures and
their applications and results, but what I really wanted from my course was
to experience this theory practically.
Prerequisite of M.Com. course is to undergo internship. I got the opportunity
to join Bank of India, Udham Singh Nagar, for the said purpose for a period
of 6 weeks. Practical involvement was a great experience as interactions
both with the experienced executives and clients cemented the base of
knowledge. This internship report includes the material about deposits, the
persons associated with it, the procedures to be followed and their proper
monitoring.
As far as my knowledge and hard work is concerned this report will provide
a good in sight of the deposits department and their working. I have special
thanks for following persons who have encouraged and guide me a lot. I
learned very much under their guidance.
 Mr. Jasvir Singh Arora (Branch Manager)
 Ms. Deepinder Kaur Grewal (Credit Incharge)
 Ms. Amaninder Kaur (Officer)
 Ms. Reshma Rani (Clerical)
 Ms. Rajni (Clerical)
 Mr. Sunil (Clerical)

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 TABLE OF CONTENTS

CHAPTER NO. PARTICULARS PAGE NO.

ACKNOWLEDGEMENT
PREFACE

CH 1. INTRODUCTION
CH 2. REVIEW OF LITERATURE
CH 3. RESEARCH METHODOLGY
CH 4. DATA ANALYSIS AND INTERPRETATION
CH 5. FINDINGS & CONCLUSION
BIBLIOGRAPHY

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 Chapter 1
Introduction

1.1 INTRODUCTION

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Finance is the life blood of trade, industry and commerce. Now-a-days, bank money acts
as the backbone of modern business. Development of any country mainly depends upon
the banking system.

Banking in India, in the modern sense, originated in the last decades of the 18th century.
Among the first banks were the Bank of Hindustan, which was established in 1770 and
liquidated in 1829–32; and the General Bank of India, established in 1786 but failed in
1791.

The largest bank, and the oldest still in existence, is the State Bank of India (S.B.I). It
originated as the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of
Bengal. This was one of the three banks funded by a presidency government, the other
two were the Bank of Bombay in 1840 and the Bank of Madras in 1843. The three banks
were merged in 1921 to form the Imperial Bank of India, which upon India's
independence, became the State Bank of India in 1955. For many years the presidency
banks had acted as quasi-central banks, as did their successors, until the Reserve Bank of
India was established in 1935, under the Reserve Bank of India Act, 1934.

In 1960, the State Banks of India was given control of eight state-associated banks under
the State Bank of India (Subsidiary Banks) Act, 1959. These were called its associate
banks and are now merged with SBI. In 1969 the Indian government nationalised 14
major private banks, one of the big bank was Bank of India. In 1980, 6 more private
banks were nationalised. These nationalised banks are the majority of lenders in
the Indian economy. They dominate the banking sector because of their large size and
widespread networks.

1.11 The banks are classified into different categories, such as:

 Central Bank : Guides and regulates the banking system of a country and does not
deal with the general public. For eg: RBI in India

 Commercial Banks : Commercial banks are profit making institutions that hold the
deposits of the individuals and then uses these funds to make loans. It is of three
types; Public Sector Banks, Private Sector Banks and Foreign Banks

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 Developmental Banks : These are developed for the development of certain areas of
interest by providing finance to them. For eg: NABARD, SIDBI, EXIM etc.

 Co-operative Banks : co-operative societies are formed for serving common interests
of individuals. These are of three types; Primary Co-operative Societies, State Co-
operative Societies and Cental Co-operative Societies.

The Indian banking sector is broadly classified into scheduled banks and non-scheduled
banks. The scheduled banks are those included under the 2nd Schedule of the Reserve
Bank of India Act, 1934. The scheduled banks are further classified into: nationalised
banks; State Bank of India; Regional Rural Banks (RRBs); foreign banks; and other
Indian private sector banks.[7] The term commercial banks refers to both scheduled and
non-scheduled commercial banks regulated under the Banking Regulation Act, 1949.

Commercial banks are the primary contributor to the economy of a country. So we can
say commercial banks are profit making institutions that hold the deposits of the
individuals & business in current & saving accounts and then uses these funds to make
loans. As banks are profit earning concerns; they collect deposit at the lowest possible
cost and provide loans and advances at a higher cost. The differences between the two are
profit for the bank. Banking sector is expanding its hand in different events every day. At
the same time the banking process is becoming faster, easier, and the banking area
becoming wider. As the demand for better service increases day by day, they are coming
with different innovative ideas and products; like internet banking, debit and credit cards,
NEFT, RTGS, online transfer and payment of funds, cashless shopping etc. In order to
survive in the competitive field of the banking sector, all banking organizations are
looking for better service opportunity to provide their fellow clients. As a result, it has
become essential for every person to have some idea on the bank and banking procedure.

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1.2 HISTORY OF BANK OF INDIA AND
PRESENT SCENARIO

Bank of India was founded on 7th September, 1906 by a group of eminent businessmen
from Mumbai. The Bank was under private ownership and control till July 1969 when it
was nationalized along with 13 other banks. Beginning with one office in Mumbai, with a
paid-up capital of Rs.50 lakh and 50 employees, the Bank has made a rapid growth over
the years and blossomed into a mighty institution with a strong national presence and
sizable international operations. In business volume, the Bank occupies a premier
position among the nationalized banks. It has completed more than 100 years of
successful banking services to its customers.

The Bank has around 5122 branches in India spread over all states and union territories
including specialized branches. These branches are controlled through 54 Zonal Offices
and 8 NBG Offices. Various zones are made to control and monitor the working of
different branches all over India. Three zones come under the Northwestern area, that are
Ludhiana zone, Chandigarh zone and Amritsar zone. BOI also deals in FOREX. It has 96
branches in Ludhiana out of which only two, Clock Tower Branch (Main Branch) and

8
Model Town Branch; are permitted to deal with FOREX. There are more than 50,000
employees associated with BOI.

While firmly adhering to a policy of prudence and caution, the Bank has been in the
forefront of introducing various innovative services and systems. Business has been
conducted with the successful blend of traditional values and ethics and the most modern
infrastructure. The Bank has been the FIRST among the nationalised banks to establish a
fully computerised branch and ATM facility at the Mahalaxmi Branch at Mumbai way
back in 1989. The Bank is also a Founder Member of SWIFT (Society for Worldwide
Interbank Financial Telecommunication)` in India.

Presently Bank has overseas presence in 22 foreign countries spread over 5 continents –
with 60 offices including 5 Subsidiaries, 5 Representative Offices and 1 Joint Venture, at
key banking and financial centers viz., Tokyo, Singapore, Hong Kong, London, Jersey,
Paris and New York.

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 1.3 COMPANY PROFILE

Date of Incorporation 07-Sep-1906

Date of Listing 07-May-1997

Management
DESIGNATION NAME
Managing Director And Chief Executive Shri Dinabandhu Mohapatra
Officer (CEO)
Non-Executive Chairman Shri G. Padmanabhan
Chief Vigilance Officer (CVO) Shri Devendra Sharma
Executive Directors Shri RA Sankara Narayanan
Shri Neelam Damodharan
Shri Atanu Kumar Das
Govt. Nominee Director Shri Girish Chandra Murmu
Rbi Nominee Director Smt. R. Sebastian
Part-Time Non-Official Director Ms. Veni Thapar
Shareholder Directors Shri Neeraj Bhatia
Shri Sanjeev Kumar Arora

1.4 VISION, MISSION AND QUALITY

POLICY OF BANK OF INDIA

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Our Vision
"To Become The Bank Of Choice For Corporates, Medium Business And Up Market
Retail Customers And Developmental Banking For Small Business, Mass Market And
Rural Markets."

Our Mission
"To provide superior, proactive banking service to niche markets globally, while
providing cost effective, respective, responsive service to others in our role as a
development bank, and in doing so, meet the requirements of our stakeholders."

1.5 DEPOSITS
1.51 INTRODUCTION:

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A deposit account is a savings account, current account or any other type of bank
account that allows money to be deposited and withdrawn by the account holder. These
transactions are recorded on the bank's books, and the resulting balance is recorded as
a liability for the bank and represents the amount owed by the bank to the customer.
Some banks may charge a fee for this service, while others may pay the customer interest
on the funds deposited.

Banks are called custodians of public money and mobilization of the deposits from the
public is the most important function of the commercial banks. Mainly, there are two
types of deposits viz. Time Deposits and Demand Deposit.

DEPOSITS

TIME DEPOSIT DEMAND DEPOSIT

Fixed deposit Current account

Recurring deposit Saving account

1.51.1 Time Deposits

When money is deposited with a “tenure”, it cannot be withdrawn before its maturity
fixed at a particular time. Such deposits are called “Time deposits” or “Term deposits”.

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The most common example of Time deposits is “Fixed Deposit”. All time deposits are
eligible for interest payments. Interest rate depends upon the tenure and amount of
deposit. This rate varies from bank to bank. The interest rate is generally higher for time
deposits of longer tenure. On the basis of their nature, time deposits may be of three types
as follows:

 Fixed deposits
A fixed rate of interest is paid at fixed, regular intervals.

 Re-investment deposits
Interest is compounded quarterly and paid on maturity, along with the principal amount
of the deposit. In the Flexi Deposits amount in savings deposit accounts beyond a fixed
limit is automatically converted into term-deposits.

 Recurring deposits
Fixed amount is deposited at regular intervals for a fixed term and the repayment of
principal and accumulated interest is made at the end of the term. These deposits are
usually targeted at persons who are salaried or receive other regular income. A Recurring
Deposit can usually be opened for any period from 6 months to 120 months.
Further, banks also provide a combination of demand and time deposits in the form of
various products. Examples of such products include Recurring Deposits, Flexible RDs,
Multiplier FDs, Special Term deposit accounts etc.

1.51.2 Demand deposits

If the funds deposited can be withdrawn by the customer (depositor / account holder) at
any time without any advanced notice to banks; it is called demand deposit. One can
withdraw the funds from these accounts any time by issuing cheque, using ATM or
withdrawal forms at the bank branches. The money as demand deposit is liquid and can
be encashed at any time. The ownership of demand deposits can be transferred from one

13
person to another via cheques or electronic transfers. There is no fixed term to maturity
for Demand Deposits. The demand deposits may or may not pay interest to the depositor.
For example, while we get an interest on savings accounts; no interest is paid on current
accounts.
As mentioned above, there are two types of demand deposits viz. savings accounts and
current accounts.

 Current Account
A current account is always a Demand Deposit and the bank is obliged to pay the money
on demand. The Current accounts bear no interest and they account for the smallest
fraction among the current, saving and term deposits. They provide the convenient
operation facility to the individual / firm. The cost to maintain the accounts is high and
banks ask the customers to keep a minimum balance.

 Saving Accounts
Savings deposits are subject to restrictions on the number of withdrawals as well as on
the amounts of withdrawals during any specified period. Further, minimum balances may
be prescribed in order to offset the cost of maintaining and servicing such deposits.
Savings deposits are deposits that accrue interest at a fixed rate set by the commercial
banks.

1.51.3 CASA Deposits

CASA Deposits refers to Current Account Saving Account Deposits. As an aggregate the
CASA deposits are low interest deposits for the Banks compared to other types of the
deposits. So banks tend to increase the CASA deposits and for this they offer various
services such as salary accounts to companies, and encouraging merchants to open
current accounts, and use their cash-management facilities. The Bank is High CASA ratio
(CASA deposits as % of total deposits) are in a more comfortable position than the Banks
with low CASA ratios , which are more dependent on term deposits for their funding, and
are vulnerable to interest rate shocks in the economy, plus lower spread they earn.

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1.51.4 NRO and NE(E)RA Accounts
There are several kinds of accounts available for non resident Indians , Persons of Indian
Origin and Overseas Citizens of India. They are as follows:

 Non Resident Ordinary Accounts: (NRO):

Any person resident outside of India can open this account. Normally, when a resident
becomes a non resident, his domestic rupee account gets converted into the NRO
account. This helps the NRI to get his credits which accrue in India, for example rent or
interest from investments.

 Non-Resident (External) Rupee Account: NR(E)RA

This account was introduced as NRE scheme in 1970. It’s a Rupee account and the NRI
can remit money to India from the funds abroad. This means that depositor is exposed to
the Currency rates risk.

1.6 BOI SCHEMES FOR CURRENT

DEPOSITS

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 1.61 BOI Basic current account

Cash Deposit Unlimited (subject to chargeable for cash handling charges)

Facility (Base &

Non-Base
Branches
Base Branch Cash Unlimited
Withdrawal
Facility
Non-Base Branch Cash withdrawal up to Rs 50,000/- per day at other than Base branch

Cash Withdrawal
Facility
Fund Transfer  Free Funds Transfer within the bank (Self A/c or Third party A/c)
 Collection of Cheques and payments across Bank of India locations all
over the country
Cheque Book First Time Free Cheque Book of 50 Cheque leaves
NEFT/RTGS  Free collection of NEFT/RTGS.
 Free NEFT/RTGS payment through Net Banking
Special Privileges  25 % Waiver of Processing Charges on Retail Loans*
 Corporate Salary Package available*
 Cash Management facility at attractive rates*
 Waiver of AMC Charges on Demat A/c for Ist Year
Ancillary Services  Phone Banking
 Corporate Net banking
 Free statements of Account
 Missed Call alert facility for obtaining account balance
 Online Income Tax return filing facility
 Free utility bills payment facility through E-pay
 ATM cum International Business Debit Card
Charges for Non- Penal charge of Rs. 600/- per quarter if AQB goes below Rs. 5000/- in

Maintaining Metro, Rs. 500/- per quarter if AQB goes below Rs. 2500/- in Urban/Semi-

16
 Average Urban and Rs. 350/- per quarter if AQB goes below Rs. 1000/- in Rural

Quarterly Balance Branches shall be levied. These charges are Quarterly and are Exclusive of
applicable service tax

1.62 “BOI SUPER CURRENT DEPOSIT + & CURRENT

DEPOSIT + ACCOUNT”

Schemes/parmeters Super current plus Current plus

Initial deposit Rs. 50 lakh Rs.2 lakh

Quarterly average Rs. 35 lakh Rs. 2 lakh

balance
Minimum balance in Rs. 15 lakh Rs. 75000

term deposit account

Sweep in daily daily
Sweep out daily On 1st and 16th of month
Multiple amount Rs. 15 lakh Rs. 75000/- min in SDR
Maximum cap on term No ceiling No ceiling

amount
Period of term deposit 1 year 15 days to 91 days
penalty Rs.5000/- + ST per qr for not Rs.1000/ for not maintaining
maintainig AQB of Rs.35 Lakh AQB of Rs.2 Lakh

Free Remitances 15 Per Quarter 6 Per Quarter upto Rs.50, 000/-

(DD/PO) per transaction

Rate of Interest Card Rate as applicable to Deposits for above maturity period.

Eligibility Current Deposit Account of Individuals, Corporates, Proprietorship

17
 and Partnership etc (other than Banks) opening BOI CD Plus Account
with initial deposit of Rs.2 Lakh and BOI CD Super Plus Account
with initial deposit of Rs.50 Lacs .

Features of Scheme ~ Maximized returns for the Customers on their short-term funds
which otherwise would not earn any interest in the Current Deposit
Account.
~Flexibility in liquidity is simultaneously achieved by linking Current
Deposit Account with Short Deposit Account.
~No loss of interest on account of before maturity penalties on the
SDR since the Customer always gets the applicable rate of interest.
For the period the receipt has run.
Automatic Renewal On maturity, Term deposit (principal and accrued interest) will be
automatically renewed for the original tenure. All the automatic
renewals of “BOI CURRENT DEP ACCOUNT” would also be carried
out at the “end of day operations”.

Payment before During the tenure of Term Deposit, if need arises, TDRs can the be

maturity paid before maturity on ‘last- in first- out’ basis without any penalty so
as to ensure that the customer does bear any Interest loss. The latest
Term Deposit would be Swept In to the current account in multiples of
Rs.15 lakh in case of Super CD Plus and in multiples of Rs.75 000/- in
case of CD Plus Account to meet cheques issued by the Customer if
there is insufficient balance in the CD Account. All the sweep-
outs/sweep-ins would be carried out at the “end of day operations”
(EOD).

TDS Applicable to Term Deposit Accounts .

Lien on Super CD/CD The customer can not assign, transfer, charge, pledge or otherwise

plus Account encumber Super CD/CD Plus account except in favour of the Bank as
security for any obligation of the customer.

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Free Remittances 6 Per Quarter upto Rs.50, 000/- per transaction

(DD/PO)

“Pseudo balance”. The system will always display the total funds at the disposal of a
customer (i.e. free funds in Current Deposit Account + Fixed Deposit
Account i.e. Principal amount only).This would be termed as “pseudo
balance”. The exceptional reports in Current Deposit Accounts having
linkage with Current Deposit Plus Account would be generated after
considering the “pseudo balance”

1.63 STAR BENEFIT CD PLUS ACCOUNT

This new product is launched on 07.09.2010 in terms of Branch Circular No. 104/72
Dt.08.09.2010., 109/201 dt 01.02.2016
The Features of Star Benefit CD Account shall be as under and will be applicable to all
the NEW ACCOUNTS opened on or after 07.09.2009. The Scheme may be modified,
withdrawn at any time at the discretion of the Bank after giving a general notice of one
month: -
a) AQB : Rs. 5000/-
b) FREE DD/PSI up to Rs.5.00 lacs each month: Three
c) Star Speed Cheque collection : Free
d) Penal Charges on account of non-maintaining of stipulated AQB requirement:
e) Rs. 600/- + ST per quarter

Other Benefits:
a) ATM (on our own) and internet transactions Unlimited

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b) Debit Card for individual and Proprietorship concern accounts Free for first year.
Intersol charges (Remittances between CBS Branches applicable as per prevailing
rates.
c) SMS/TELE/Internet Banking Free
d) NEFT/RTGS through Net Banking Free
e) e-Pay of utility bills at select centers Free
f) Star Sandesh : Free
g) Minimum Balance charge: Rs. 100/- per month.

All the rules, regulations and guidelines applicable to Current Deposit Accounts will also
be applicable on this product like, LF charges, cheque return charges, stop payment
charges etc.

1.64 LAUNCH OF NEW CURRENT ACCOUNT PRODUCTS

&
REVAMPED EXISTING CURRENT ACCOUNT SCHEMES

The new Current Account Products are designed on the Average Quarterly Balance
requirements instead of Minimum Balance stipulation which is an irritant to the account
holder.
Highlights of the new features/value additions which have been introduced and fine tuned
to make them attractive:-
(i) Lower Average Quarterly Balance requirement for Rural & Semi Urban
branches (Rs.1000/), Urban Branches (Rs.2500/) and Metro Branches ( Rs.5000/)
(ii) New Current Accounts can be opened on DAY ONE ITSELF at higher tierised
levels like Diamond or Platinum etc. as requested by the prospective customer.
(iii) No Daily Minimum Balance Stipulation.
(iv) Free Cheque Leaves-Originally once with the opening of account.

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(v) Free/Reduced NEFT/RTGS Charges*
(vi) Free or reduced Ledger Folio Charges*
(vii) Free Demand Drafts/Pay Orders*
(viii) Waiver on Processing Charges on Retail Loans*
(ix) Waiver on AMC Charges on Demat Accounts* (only for the First Year)
(x) Free/Reduced Charges on Cash Handling for Cash Deposit*
(xi) Discount on Point of Sale(POS) offer*
(xii) Improved Forex Rates*

Note: (*) Free or reduced charges/discount on various service charges/add on facilities,

are applicable for tierised accounts and are proportionately higher for tierised accounts
with higher Average Quarterly Balances.

Key Highlights of the Revamped Current Account Products:-

Banks is currently offering various Current Account Schemes under different
Scheme Codes and are identified accordingly. Out of which following are three main
scheme codes constituting more than 98% of Current Deposit Portfolio:-

Sr. no. Name of the Product Scheme Code

1. Current Account-General CD-201

2. Current Account-Collection Account CD-209

3. Current Account-Institutional CD-211

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Apart from above Bank has been offering value added services to its existing Gold,
Diamond and Diamond Plus CD Accounts maintaining AQB of Rs.50000/ to 2 Lakh,Rs.2
Lakh & up to Rs.5 Lakh and Rs.5 Lakh and above respectively.
Bank has introduced 5 more tierised products with attractive additional features,
discounts & value added offerings apart from the existing products namely Gold,
Diamond and Diamond Plus Current Accounts. The existing and newly created
variants of Current accounts shall be known as Normal, Silver, Gold, Gold Plus,
Diamond, Diamond Plus, and Platinum & Platinum Plus.

In another scenario(for example), if a customer does not maintain stipulated AQB in the
previous two quarters in sequence then the account shall be downgraded on the basis of
AQB maintained in the immediate preceding quarter, and the account shall be subjected
to levy of penalty stipulated.

Note:-
i.)Above specific feature is provided to take care of any unforeseen reason, if the account
goes below stipulated AQB in one quarter. We should not withdraw free attractive
features giving fair opportunity to customer to restore/upgrade the balance in the account
in the current quarter so that the benefits could be continued to the customer concerned.
ii.) The Branch Manager, based on the potential of the new account is authorized to open
a new account and tag it at a higher level of tierised account like Diamond or Platinum on
the very first day of its opening.
iii.) The branch manager is authorized to tag the account at higher level of tierised
account within the objective of enhancing the balance in the account. In the next quarter
the account t would automatically tierised as per AQB in the last quarter. Such customers
desirous of getting their accounts tagged under higher grade0
will have to submit their option/request in the format as per Annexure V of the Circular.

22
iv.) If a customer is unwilling to opt for up-gradation on the basis of system driven
tierisation, the Branch Manager is authorized to reverse the up gradation of account and
will park the account as per the request of the customer as per undertaking vide Annexure
IV of the Circular prior to refund of Penal Charges for non-maintenance of stipulated
minimum AQB.

The Bank will have 8 Variants instead of existing 4 Variants/products hitherto:-

Existing category of Revised Categories of Current Accounts and their AQB

Current Accounts and (Revised Tier)

their AQB (Existing

Tier)

i. Current Account- i. Current Account Normal-Below Rs.20000/

General

ii. Silver-Rs.20000/ to less than Rs.50000/-

ii. Gold-Rs.50000/ but iii. Gold-Rs.50000/ but less than Rs.1 Lakh

less than Rs.2 Lakh

iv. Gold Plus-Rs.1 Lakh to Less than Rs.2 Lakh
iii. Diamond-Rs.2 Lakh v. Diamond-Rs.2 Lakh and above but less than Rs.5 Lakh

and above but less than

Rs.5 Lakh.
vi. Diamond Plus-Rs.5 Lakh to less than Rs.10 lakh.
vii. Platinum-Rs.10 Lakh to less than Rs.20 Lakh.
viii. Platinum Plus-Rs.20 Lakh and above.

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 1.7 Saving deposit account

A savings account is an interest-bearing deposit account held at a bank or another

financial institution that provides a modest interest rate. Banks or financial institutions
may limit the number of withdrawals you can make from your savings account each
month, and they may charge fees unless you maintain a certain average monthly balance
in the account. In most cases, banks do not provide checks with savings accounts.

 Features of Savings Account

Because savings accounts pay interest, it is more financially advantageous to keep
unneeded funds in a savings account than a checking account. In addition, savings
accounts are one of the most liquid investments outside of demand accounts and cash.
While savings accounts facilitate saving, they also make it very easy to access your
funds. In contrast, it is typically more difficult to cash a bond, make a withdrawal from a
retirement account, or sell stocks or other assets.

SCHEMES OF BOI RELATED TO SAVINGS ACCOUNT :

 STAR DIAMOND SAVINGS ACCOUNT

 BOI SAVINGS PLUS SCHEME

 STAR POWER SALARY A/C

 BOI SARAL SALARY ACCOUNT SCHEME

 BOI SALARY PLUS ACCOUNT SCHEME

 STAR SURAKSHA SB-PLUS ACCOUNT

 BOI STAR SENIOR CITIZEN SAVINGS BANK ACCOUNT

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  BOI STAR MAHILA SAVINGS BANK ACCOUNT

 BOI STAR GURUKUL SAVI NGS BANK ACCOUNT

 BOI STAR YUVA SAVINGS BANK ACCOUNT-

 SENIOR CITIZEN SAVINGS SCHEME

 SUKANYA SAMRIDHI ACCOUNT

1.71 Basic saving deposit account

Name of Scheme Savings Bank A/c

Schemes At all branches

available
Eligible Individual - Single Accounts, Two or more individuals in Joint
Accounts , Illiterate Persons Blind persons, Minors, Associations,
Clubs, Societies, etc. Trusts, Institutions/Agencies specifically
permitted by the RBI

Initial Deposit Rs. 500 for cheque book operated

and Average Rs. 100 for non cheque book accounts

Quarterly
Balance (AQB)

25
 requirement
Charges for Non- In case of Non maintenance of AQB, Penalty will be
Maintaining levied as under:
SB A/cs with cheque book facility:
Average
Penal charges: Rs.54/- +S.T. per quarter at all centres
Quarterly
SB A/c without cheque book facility:
Balance Penal charges: Rs.40/- +S.T. per quarter at all centres

Incentives 1. Internet banking facility

2. Unlimited ATM transactions.

3. Online income tax file return facility

4. Personalised cheque books on request

5. Free utility bills payment facility through Epay

Product available BOI-National Swasthya Bima Policy

specially floater mediclaim policy of NICL available at low premium

to BOI customers
Nomination Available as per prevailing banking norms

facility

1.72 STAR DIAMOND SAVINGS ACCOUNT

FEATURES : Average quarterly balance in Savings A/c Rs. 1 lakh and above
Branch debit transactions per month Free

SMS/Phone/ATM and Internet Banking Free

Personalized cheque book Free

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Home delivery of Demand Drafts (couriered) Free

Statement of Account, on demand Free

International Gold Credit Card Free

International Debit Card Free

Relationship Manager Free

Stop payment charges NIL

Processing charges on Personal/Retail Loans NIL

Demat Account Annual Maintenance charge Free

Inward Cheque Return charges – local NIL

Group Personal Accident Insurance Cover(Accidental Death Free

Only) Cover upto Rs.5 Lakh*

1.73 BOI SAVINGS PLUS SCHEME

This is a combination of our Term Deposit Scheme and our Savings Bank Scheme with
very attractive features.

 Technical Support

27
The package will take care of entire operations including the complex calculations,
Sweep outs/ins, interest calculations, applications & provision etc.

 Accounting
A separate G/L Head Styled as “BOI Savings Plus “would be opened and would appear
under Term Deposit Head in GLB.
The linked SB A/c will continue to remain in GL Head “Saving Bank”. A separate P/L
head styled “Interest on BOI Savings Plus” would be created to route interest amounts
credited in BOI Saving Plus Accounts.

 Eligible Accounts
All Savings Bank Account subject to Minimum Balance Criteria of Rs.25,000/- in SB
Portion and Rs. 5,000/- in Term Deposit Portion. There is no change in the account
opening/approval procedures.

Basic Features of the scheme

a) BOI Savings Plus is a mix of Savings Bank Account and Term Deposit Account.
b) Minimum balance in SB portion is Rs.25,000/- and minimum balance in Term Deposit
Portion is Rs.5,000/-.
c) Any amount in excess of Rs.25, 000/- in the SB portion will be auto swept out into the
SDR or DBD portion in multiples of Rs.5, 000/- on daily basis.
d) In the SDR portion, monies can be invested for any period from 15 days to 179 days,
as per the customer’s choice. In the DBD portion, monies can be invested from 6 months
up to and including 10 years, as per the customer’s choice.
e) Upon maturity, the principal in the SDR/DBD portion would be auto-renewed for an
equal period, while the interest would be credited to the SB portion on the concerned due

28
date. The same , if not withdrawn can be swept back again into SDR/DBD for a period of
the customer’s choice.
f) In case the balance in the SB portion is short of the required level to meet cheques
presented in the A/c., funds from SB Plus portion will be auto swept in, into the SB
portion, in multiples of Rs. 1,000/- on daily basis. Although this would amount to
Payment before Maturity, no penalty would be charged. The latest SDR/DBD deposit
would be closed before maturity (in multiples of Rs. 1,000/-) to ensure that the customer
does not have to bear higher loss (i.e. LIFO principle to apply).
g) Non-maintenance of minimum balance prescribed in the SB portion, will attract a
penalty of Rs.200/- per quarter.
h) Rate of Interest on the SB portion would be 4.00% p.a., while the Rate of Interest on
the SDR/DBD portion will depend on the tenure for which each deposit is placed, and at
the ruling Interest Rate as on the date the deposit is placed or renewed.
i) TDS norms would apply as per extant rules.
Lien on BOI Savings Plus Accounts The customer may not assign, charge, pledge or
otherwise encumber any BOI SB Plus Deposit except in favour of Bank.

1.74 STAR POWER SALARY A/C

Salient Features:
A. No minimum balance / No Ledger Folio / Transactions charges.
B. Free ATM International Debit Card / Free India Card (Charge Card) -Annual Charges
applicable from next year
C. Free Internet Banking Facility / Unlimited ATM and Internet Transactions.
D. Free Access to non-BOI ATMs under Cash Tree.
E. Free Statement of Account - Quarterly - from the Branch
F.( No Pass Books to be delivered) Monthly - through e-mail.
G. Free Tele banking/ SMS Banking *
H. Free Personalized Cheque Books (50 leaves in a year)*

29
I. Free Demat Account (for the first year)*/Facility for Online Trading of Shares*
J. Free cheque pickups/deliveries – once a day
K.TOD Facility – equal to previous month’s net salary @ Personal Loan Rate.#
L. Free Personal Accident Insurance Cover (as per Debit Card & India Card privileges)
M. Free Utility Bills Payment through e-Pay Facility.
N. Waiver of processing charges and/or concession in R/Interest upto 25 basis points for
group processing of Retail Loans of the employees. – ZMs to use their discretion.

# Conditions apply - For TOD Facility, the employee’s total deductions should not be
more than 65% of his total salary. Branch Managers to use their discretion based on the
conduct of the Salary A/c.

TERMS & CONDITIONS:

i. Salary Accounts may be opened for Firms/ Corporates / Govt. / Semi-Govt.

undertakings having minimum 25 employees.
ii. The Institution should open its C/D A/c. with us, wherever possible.
iii. Minimum net salary of any employee not to be less than Rs.10,000/- p.m.
iv. Salary Accounts may be opened in CBS Branches, so that
Centralized salary database is created and provided to the Salary paying Company/ Govt.
Deptt. , whenever required (at a cost).
Simultaneous credit of salary for all the employees in various branches of the Company is
possible through centralized salary payment scheme in the case of companies having
branches in more than one city.
Salary paying Company provides salary particulars in a floppy or soft copy, so that credit
can be given to the individual accounts with least work pressure.

1.75 BOI SARAL SALARY ACCOUNT SCHEME

30
 Bank has launched BOI Salary Plus Account scheme vide BC No.104/149 dated
21.02.2011. With an objective of widening the scope of our salary account scheme, Bank
has launched another version of Salary account scheme for salary earners with net take
home salary criteria of Rs.5000/ p.m. and above

Features of Scheme:-
Eligibility All employees on regular pay roll of any institute ( Central Govt/State
Govt/PSU/Private Sector) with minimum 10 employees and each employee
is having minimum take home salary of Rs.5000/ p.m. and above
Minimum nil

balance
Debit card Free Debit Card to all (with applicable ATM Cash withdrawal limit of
Rs.25000/ per day & Point of Sale uses limit of Rs.25000/ per day.)
Free Platinum Debit Card to employees with minimum take home salary of
Rs.25000/ p.m. or AQB in S/B Account is Rs.1 Lakh (with ATM cash
withdrawal limit of Rs.50000/ per day & Point of Sale uses Limit of Rs.1
Lakh per day.)
Personal Rs.1 Lakh .

Accidental Death
Insurance Cover
Internet Free

Banking/Bill
Pay/Mobile
Banking/Star
Sandesh (SMS
Alert)

31
Transaction on Free on all BOI ATMs(5 transactions free per month at Non-BOI ATMs)

ATM
Cheque Leaves 100 payable at par cheque leaves per colander year-Free

Concession on 50% waived

Processing
Charges on
Home Loan,
Vehicle &
personal Loan
Star Share Available, Annual maintenance charges on Demat Account waived (during

Trade(3 in 1 First Year)

account)
Demat, SB,
Online share
trading
Credit Cards Free Gold Credit Card to employees with net salary of Rs.10000/ and above
for last 6 months.
Free Gold International Credit Card to employees with net salary of
Rs.25000/ and above for last 6 months.

1.76 BOI SALARY PLUS ACCOUNT SCHEME

Eligibility: All employees on regular pay roll of

(A) Para Military forces such as CRPF, BSF, ITBP, CISF, NSG, Shashtra
Seema BAL, Rashtriya Rifles, Special Frontier Force, Assam rifles etc.

32
 (B) Employees of Central Govt/State Govt/Universities/Colleges affiliated
to Universities,
(C) Employees of Public Sector Undertakings.
(D) Employees of Private Sector(Approved by the Zonal manager)
(Minimum take home salary Rs.10000/ 80
p.m. and above for at least 70% of the
employees whose salary accounts are to be
opened. Deviation in eligibility to be
approved by ZM.
Minimum Balance Nil
ATM Cum Debit Free Platinum Debit Card to para military, central govt , state govt & public

card sector employees .Free debit card for pvt. sector employees and free
Platinum debit card for employees whose Net Take Home Salary is
minimum Rs.25000/ p.m. or AQB in S/B Account is Rs.1 Lakh
Personal Accidental Rs.10 Lakh for para military, central govt, state govt & public sector & 5

Death Insurance lakh for pvt employee.

Cover

Internet Free

Banking/Mobile
Banking/Star
Sandesh/RTGS/NEF
T) payment through
Internet Banking.
Cheque Leaves 100 payable at par cheque leaves per calander year-Free.

Easy Over Draft 4 Times of Net salary

(On application & Maximum Rs.2 Lakh

Rate of Interest-4.50% over Base Rate
undertaking as per
Annexure II & III

33
 respectively, after
approval of
Manager. Loan plus
TOD not to exceed
Limit of Rs.2 Lakh,
Option for
conversion of
Personal loan for
repayment in 60
EMIs.
Interest Concession 0.50% less than usual rate subject to minimum of Base Rate for para

on Retail Loans military, central govt, state govt & public sector & 0.25% less than usual
rate subject to minimum of Base Rate for pvt sector employee.
such as home Loans,
Auto Loans
Star Share Trade(3 Available Annual maintenance charges on Demat Account waived (during

in 1 account) Demat, First Year)

SB, Online share
trading
Demand Drafts/Pay 24 DD/PO free per Calander Year
Orders with
Maximum amount
of Rs.50000/ per
DD(through salary
account)
Credit Cards Free Gold Credit Card to all employees and Free Gold International Credit
Card to employees with net salary of Rs.25000/ and above

Except above all the facilities, rules, regulations and guidelines applicable to Savings Bank account
are also applicable on BOI Saral salary accounts.

34
 1.77 STAR SURAKSHA SB-PLUS ACCOUNT

a.) Initial Balance and Average Quarterly Balance Rs.500

b.) 50 leaves per year cheque book (as applicable in SB) Free

c.) One DD/PSI issuance upto Rs. 25,000/- per month Free

d.) Accidental Death Insurance Free Free

Cover upto Rs. 50,000/-

e.) AMC Charge on DEMAT account (first financial year) Free

f.) ATM-cum- Debit Card Free

*Annual Service charges to be recovered from the next year

For ‘’Star Suraksha SB Plus “ separate special charge code 103 is to be used for the
accounts opened under scheme code- SB 101 or 103 and 111( minors, Diamond SB
accounts and NRI are not covered under Star Suraksha SB Plus Account scheme).
Other facilities which are available for all savings bank customers will also be applicable
to these accounts like:
a. Transactions (on our own ATM and internet) Unlimited
b. Remittances between CBS Branches- Applicable for all accounts between A/cs with
different
Customer ID- Free.
SMS/TELE/Internet Banking Free
Pay of utility bills at selected centres- Free

35
 All the rules, regulation and guidelines applicable to Savings Bank Accounts will also be
applicable on this product like Rate of Interest, minimum balance charges etc. The
scheme will continue for a period of two years and shall be reviewed after expiry of the
period. Only New SB Accounts opened in the name of individual excluding accounts in
the name of minor, NRI and Diamond account holders will be covered under this scheme.

1.78 BOI STAR SENIOR CITIZEN SAVINGS BANK ACCOUNT

Target Group Citizens who have completed 57 years of age and Senior Citizens who
are drawing pension from other Banks.
Eligibility Single or in joint names. The first account holder must belong to the
target group.
Opening of No Daily Minimum Balance Requirement. However customer has to

Account/Minimum maintain Average Quarterly Balance (AQB) of Rs.10000/- or above

therefore AQB Clause to apply.
Daily Balance
Charges for Non- No Penalty for Non Maintaining Daily Minimum Balance. In case of

Maintenance of Non Maintenance of AQB of Rs.10000/- Penalty will be levied.

Minimum
Balance /AQB
Charges for excess Up to 10 Customer induced debit entries in a month : FREE

debit entries in SB Beyond 10 debit entries: FREE

(Presently Normal Savings Account is charged with Rs. 10/- per entry
A/c, ATM/Internet
for entries in excess of 10 debit entries.)
Transactions not to
be Counted/
Reckoned.
Personalized Cheque 50 Leaves (Free)
Books per calendar

36
 year
Issuance of DD/Pay 6 DD/Pay Slips Per Quarter Free if AQB in the preceding quarter is

Slips maintained at Rs.10000/- and Above else DD charges would be

applicable.

Global Dr cum ATM Free Global Debit cum ATM Card-NIL Annual Charges from next year
Card
Demat Account Waiver of AMC Charges on Demat A/Cs (For First Financial Year only)

Maintenance
charges(Annual)
Other features and • No Ledger Folio Charges.

incentives • Free Internet banking Facility.

• Free Funds Transfer through Internet Banking.
• Unlimited Internet and ATM Transactions at BOI ATMs.
• Free SMS and Telebanking.
• Free Utility Bill Payment facility through E-pay.
• Free NEFT/RTGS through Internet Banking for single transaction.
• Free Missed Call Alert Facility.
• BOI- National Swasthya Beema Policy, floater mediclaim policy.
ofNICL available at low premium.

1.79 BOI STAR MAHILA SAVINGS BANK

ACCOUNT

Target Group Women in the age group of 18 years and above

-including salaried employees (Govt./PSU/Private Sector/MNC etc.)

37
 -Self Employed Professionals like Doctors, Entrepreneurs etc.
-Women with independent source of regular income like rentals etc.
Eligibility Single or in joint names. The first account holder must belong to the
target group.
AQB Criteria Average Quarterly Balance (AQB) of Rs.5000/-
AQB shall be calculated for AMJ, JAS, OND and JFM quarters.
(For example AMJ stands for April, May, June)
Opening of No Daily Minimum Balance Requirement.

Account/ However customer has to maintain Average Quarterly Balance (AQB) of

Rs.5000/- or above therefore AQB Clause to apply
Minimum Daily
Balance
Charges for Non- No Penalty for Non Maintaining Daily Minimum Balance. In case of

Maintenance of Non
Maintenance of AQB of Rs.5000/- Penalty will be levied as under-
Minimum Balance
SB a/c with cheque book facility: Rs 100/- per Quarter at all centers.
/AQB
SB Account without cheque book facility: Rs 60/- per Quarter at all
centers
Charges for excess Up to 10 Customer induced debit entries in a month : FREE

debit entries in Beyond 10 debit entries: FREE

(Presently Normal Savings Account is charged with Rs.10/- per entry for
Savings
entries in excess of 10 debit entries.)
Bank account
ATM/Internet
Transactions not to
be
counted/reckoned
Personalized 50 Leaves (Free)

Cheque
Books per
calendar year
Issuance of 6 DD/Pay Slips Per Quarter Free if AQB in the preceding quarter is

DD/PaySlips maintained at Rs. 10000/- and above else DD charges would be

38
 applicable.
Global Debit cum Free Global Debit cum ATM Card-NIL Annual Charges from next year

ATM Card
Demat Account Waiver of AMC Charges on Demat A/Cs

Annual (For First Financial Year only)

Maintenance
charges
Group Personal Group Personal Accidental death insurance cover of Rs. 5 Lacs on the

Accidental Death Debit Card, which shall be activated by single POS Swipe. This Clause
applies to every financial year.
Insurance Cover
The facility of Group Personal Accidental death Insurance Cover of Rs.5
Lacs will be extended by the Bank to the Account holders of this
Scheme
and the cost of premium will be borne by the Bank.
Note: Bank holds the right to withdraw this facility at its discretion in
the subsequent year.
Other Features & • No Ledger Folio Charges.

Incentives • Free Internet banking Facility.

• Free Funds Transfer through Internet Banking.
• Unlimited Internet and ATM Transactions at BOI ATMs.
• Free SMS and Telebanking.
• Free Utility Bill Payment facility through E -pay.
• Free NEFT/ RTGS through Internet Banking for single
transaction.
• Free Missed Call Alert Facility.
• BOI- National Swasthya Beema Policy, floater mediclaim
Policy of NICL available at low premium.

BOI STAR GURUKUL SAVINGS BANK ACCOUNT

39
 Eligibility All permanent teaching and Non-Teaching staff of school/colleges
/universities and all educational institutions are eligible to open account
under the scheme provided minimum 10 employees of the institution
having minimum take home salary of Rs.5000/ p.m. and above to join
the scheme, and the institutions agree to pay the salary through the Bank
with an Agreement to sign Letter of Undertaking(to be obtained from
employer). Deviation in eligibility criteria to be approved by ZM only.
Note: For opening of accounts under the scheme, Menu option is
OAAC and Scheme Code will be ‘163’ and Special Charge Code will be
“GURU”.
Minimum Daily No minimum balance requirement/Zero Balance Account

Balance
Charges for excess Up to 10 Customer Induced debit entries in a month : FREE
debit entries in S/B Beyond 10 debit entries: Rs.10/ per entry.
(ATM/Internet transactions not to be reckoned)
Account
Personalised 50 Leaves (Free)

Cheque
books per calendar
Issuance of Free 24 DD/PSI of Max. Rs.50000/ each in a calendar year.

DD/Pay Slips
Global Debit cum Free global Debit cum ATM Card to all-NIL Annual Charges from next

ATM Card year.

Free Platinum Card for higher salary earners (Annual charges applicable
from next year)
NEFT/RTGS Free. (Through Net Banking).
Concession on 0.25% concession in ROI on Home Loan and Auto Loan subject to

Loans minimum Base Rate.

Credit Card Free Gold Credit Card to employees whose net salary is Rs.10000/ and
above for last 6 months. Free Gold International Card to employees
whose net salary is Rs.25000/ and above for last 6 months.
Easy Overdraft O/D Facility in account available for maximum amount of Rs. 200000/

40
 Facility or net salary for last four months, whichever is lower as per Terms &
Conditions.
Rate of Interest on O/D facility- 3% over the Base Rate.
Processing Charges-NIL.
Terms & Conditions:- (1) O/D facility to be extended to Permanent
Employees of Govt. and Quasi-Govt., Educational Institutes however
the facility may be extended to permanent employees of Private
institutes as per the discretion of Zonal Manager.
(2) Undertaking to be obtained from the employer not to shift the salary
account or pay Terminal Dues without NOC from the Bank.
(3) Cross Guarantee can be taken as an additional safety measure.
(4) Net Take Home Pay/Income should not be less than 40% of Gross
Income.
Group Personal Group Personal Accidental Death Insurance Cover of Rs.5 Lacs on the

Accidental Death Debit Card, which shall be activated by single POS Swipe. This Clause
applies to every financial year.
Insurance Cover
The facility of Group Personal Accidental death Insurance Cover of Rs.5
Lacs will be extended by the Bank to the Account holders of this
Scheme and the cost of premium will be borne by the Bank.
Other Facilities • No Ledger Folio Charges.

and • Free Internet banking Facility.

• Free Funds Transfer through Internet Banking.
Incentives
• Unlimited Internet and ATM Transactions at BOI ATMs.
• Free SMS and Telebanking.
• Free Utility Bill Payment facility through E-pay.
• Free NEFT/RTGS through Internet Banking for single transaction.
• Free Missed Call Alert Facility.
• BOI-National Swasthya Beema Policy, floater mediclaim policy of
NICL available at low premium.

41
 Senior Citizen Savings Scheme

Eligibility Account can be opened by an individual-

(Age Criteria ) a) Who has attained the age of 60 years and above on the date of
opening of account.
b) Who has attained the age of 55 years or more but less than 60 years
and has retired under a Voluntary Retirement Scheme (VRS) or under
Special Retirement Scheme on the date of opening of account within 3
months from the date of retirement.
c) No age limit for the retired personnel of Defence Services provided
they have fulfilled other specified conditions.
Joint account Account can be opened jointly with spouse.
Ineligible Cases Non-Resident Indians and HUF are not eligible to open the account
under the Scheme
Amount of Deposit  Minimum Rs.1000/-, Maximum Rs.15, 00, 000/-
 The individual can open one or more account(s) in the multiples of
Rs.1000/- subject to a maximum of Rs.15, 00, 000/-
Tenure of deposit 5 years which can be extended by 3 years
Rate of Interest 9.30% per annum, quarterly compounded w.e.f. 01.04.2015. Interest to
be automatically credited to Savings Account of the depositor.
Tax Interest on deposits under the scheme is taxable and TDS to be deducted
as per norms.
Premature Closure Premature closure of account is permissible after one year of opening,
but with penalty:-
a) Account is closed after 1 year but before 2 years- deduction of 1.50%
of deposit
b) After 2 years of deposit but before maturity of account-1% of deposit.
Payment in case of In case of death before maturity, the account will be closed and deposit

Death of Depositor will be refunded to the claimant without any penalty.

Transferability Not Transferable, transfer from one office to another is permissible.
Tradability Not tradable
Nomination Available

facility

42
 SUKANYA SAMRIDHI ACCOUNT

Depositor: For this scheme, the depositor is an individual on behalf of a minor girl
child.
One girl one Account: Depositor cannot open multiple or more than one account in
the name of a Girl child.
Can be opened for Maximum two girls: Natural or legal guardian of a child
allowed opening one account each for two girl children’s.
Account opening for third girl: Under this scheme natural or legal guardian of the
girl child shall be allowed to open third account in the event of birth twin girls as second
birth of if the first birth itself results into three girl children, or production of a certificate
to this effect from the competent medical authorities where the birth of such twin or triple
girl children takes place.
Age Restriction for Opening of Account: The account may be opened by the
natural or legal guardian in the name of a girl child till she attains the age of ten years and
any girl child, who had attained the age of ten years ,one year prior to the commencement
of these rules shall also be eligible for opening of account under these rules. Scheme is
been commenced from 02.12.2014.
Document to Open the Account: Birth certificate of a girl in whose name the
account is opened shall be submitted by the guardian at the time of opening of the
account.
No fixed Rate of Interest : as per GOI guidelines.
Maximum and Minimum Deposit: The account may be opened with an initial
deposit One thousand rupees and not exceed one lakh fifty thousand rupees in a financial
year.

43
Term Period: Deposit can be made till completion of 14 years from the date of
opening of the account .The maturity of the account is 21 years from the date of opening
of account.
Regularisation of Irregular account : If in any account minimum deposit of 1000
Rs in a year has not been deposited than such irregular account may be regularize on
payment of a penalty of 50 Rs. Per year.
Operation of Account : The account shall be opened and operated by the natural or
legal guardian of a girl till the age of 10 years , after attaining 10 years operated upon
herself .
Pre-mature closure: In the death of account holder account shall be closed
immediately and pay the amount with interest to the guardian.
Passbook: Can be issued.
Transferable: this account will be transferable.
Pre-mature withdrawal: to meet the financial requirement of the girl after attaining
the age of 18 years.
Tax benefit: The amount deposited towards Sukanya Samridhi Account under the
section 80C of income tax act, 1961 upto 1.5 lakhs as notified by Notification
No.09/2015 Dated 21/01/2015.Amount deposited in the account will be counted in
overall limits of 1.50 lakhs under section 80C . Interest earned in this scheme is taxable
but the maturity amount is exempt.

1.8 Fixed Deposit Account of Bank of India

The following are eligible to open an FD account in Bank of India:

Eligibility
 Individuals
 Joint accounts for 2 or more individuals
 Partnership firms
 Trusts

44
  Minors
 Blind persons
 Illiterate persons
 Joint Hindu families
 Limited companies and partnership firms
 Municipalities and panchayats
 Charitable, religious, and educational institutions
 Associations, societies, clubs etc.
 Sole proprietary concerns
 For Fixed/Short Term Deposit: Minimum amount is ₹ 5,000 in
Minimum
semi-urban and rural branches; ₹ 1 lakh for Short Term Deposit and
amount for
₹ 10,000 for Fixed Term Deposit in urban and metro branches; ₹
opening
5,000 for senior citizens; and ₹ 1 lakh for deposits of 7 days to 14
Bank of
days tenure.
India fixed  For Quarterly/Monthly Term Deposit: ₹ 10,000 in urban and
deposit metro branches; ₹ 5,000 in semi-urban and rural branches; and ₹
account 5,000 for senior citizens.
 For Double Benefit Term Deposit: Same as Quarterly/Monthly
term deposit scheme.
The information regarding maximum amount that can be used in an
Maximum
FD account is currently not available. Investments are accepted
amount upwards of ₹ 400 crores also.
that can be
deposited
Tenures range from as low as 7 days for Short Term Deposits, and up
Minimum and
to 120 months in other plans.
maximum
tenure
Bank of India fixed deposits generally need the applicants’ residential
Procedure for
proof, identity proof, photographs, and filled application form at the
opening time of opening an FD account. It is advisable to open a savings

45
 account in BOI when going for fixed deposit schemes, as this will help
BOI FD
you in avoiding delays in interest disbursement, due to direct crediting
account in customers’ savings account
The Bank of India offers fixed deposits for NRIs under two categories:
NRI fixed
 Foreign Currency Non-Resident Accounts (FCNR).
deposits
 on- Resident External Accounts (NRE).

Both accounts are available for NRIs as individual account, joint

account of two NRIs and joint account with an Indian resident.
Customers also receive nomination facilities. The funds in both the
account types are fully repatriable.

1.9 BASIC RECURRING ACCOUNT

Eligibility Only individuals are eligible to open accounts under the scheme.
Thus, the Recurring Deposit Accounts can be opened in the names of :
 individual — Single Accounts
 Two or more individuals — Joint Accounts
 Illiterate Persons
 Blind Persons
 Minors
Opening of A Recurring Deposit account where the compounding of interest is to be

Accounts done on quarterly basis shall be accepted for periods in multiples of

three months only upto the maximum period of ten years..
Minimum Recurring Deposits will be in equal monthly instalments. The core

Amount of monthly installment should be minimum Rs. 500/ in Metro and urban
Branches and Rs.100/- or above in Semi urban/Rural Branches and in its
monthly
multiples. There is no maximum limit.
installment

46
 penalty penalty will be charged on the installments in arrears at the following
rates
Rs.1.50 for every Rs.100/- p.m. for deposits of 5 years and less
Rs.2.00 for every Rs.100/- p.m. for deposits of over 5 years. Where
installments in the account are deposited in advance, penalty payable in
respect of delayed installments may be waived by the Bank if the equal
number of advance installments is deposited.
TDS on As per amendments brought about in Finance Act 2015, TDS will be

Recurring applicable for Recurring Deposits, also

Deposits

1.91 STAR FLEXI-RECURRING DEPOSIT SCHEME

Parameters Features
Availability of At all our Domestic Branches

Scheme
Eligibility Individuals & Joint accounts (including Minors)
Nomination Available
Minimum Minimum amount of Core Monthly Installment:

amount of Core  Rs.500/- and in its multiples at Metro and Urban branches.
 Rs.100/- and in its multiples at Rural and Semi-Urban branches.
Monthly
 No upper limit for Core monthly Installments
Installments
Flexi  Any amount in the multiples of Core Monthly installments initially

Installments opted at the time of opening of account.

 Maximum amount of Flexi Installment can be any number of times
of Core Monthly Installment.
Period  Minimum : 12 months
 Maximum: 10 years (in multiples of 3 months)
Interest rate on i) Core Installments (Fixed rate) - As applicable for the period for which

47
 Core & Flexi account has been opened.

Installments ii) Flexi Installments- As applicable for the period of RD remains with
the Bank i.e. from the date of deposit of each flexi installment till
maturity of RD account.
Penalty As per applicable rules for delay/ non-receipt of Core Installment.
Present Penalty Rules are:-
 Rs.1.50 per Rs.100/ p.m. for deposit for 5 years or less.
 Rs.2.00 per Rs.100/ for the deposit for over 5 years.
Maturity Value Maturity value will be calculated by the System, depending on the
amount of Flexi Installments. No fixed maturity value.
Loan, OD & Permitted as per existing rules.

Advances
Other Terms and  As applicable to existing RD Scheme.
Conditions  No advance core installments. Amount deposited in excess of core
installment will be considered as flexi installment for that month
provided that core installment is paid in the multiples of amount
required.
 Standing Instructions will be accepted only for Core Installments.
 core installments will be fixed at the time of opening of account and
can not be allowed to vary subsequently.
 Core installments will have to be paid every month to avoid penalty.
 Flexi Installments will be deposited in the multiples of Core
Installments chosen at time of opening of account and would be
deposited once in a month.
 There will be one maturity date for care and flexi installments.
 Core and Flexi Installments need not be deposited together, they can
be deposited at different dates in the same month.
 No pass book will be issued for Flexi RD account. Only System
generated Statements will be issued to the customers.
 No Flexi installment will be accepted in the last month of R/D
account. If RD account is opened for 36 months, Flexi installments

48
 can be deposited from 1st to 35th month.
 No auto-renewal of maturity proceeds permitted. Instead the
proceeds will be credited to SB account, if no other instructions are
received from the customer. For this purpose, an operative SB or CD
account may be opened for the customer while opening the Flexi RD
Account.
 In case any core installments are in arrears, extra amount deposited
subsequently would first go to core installment. Previously paid flexi
installment can not be adjusted towards future core installments.
 In case of pre-mature closure of Flexi RD account within 3 months
of opening, no interest would be payable on core and flexi
installments. If the account is closed after 3 months but before
maturity, normal rules will apply for pre-mature closure. (Compound
Interest for the completed quarters and simple interest for the last
broken quarter at the rate applicable for the period of deposit.

49
 Chapter – 2
Review of the literature

50
 REVIEW OF THE LITERATURE

A survey was conducted by Ananda Vikatan (A Tamil weekly magazine) during January
(2005) the public were interviewed on the aspect of savings and their savings habits.
One salaried class investor admitted that he was in the habit of allocating 20 Per cent of
his savings every month in the form of either a fixed deposit or a recurring deposit. In
addition, he would earmark a certain amount and deposit it in a bank or a non banking
financial company. In the event of his getting substantial pay arrears, he would deposit
the entire amount in banks keeping in mind his children‘s future. He admitted that he had
never fallen into debts so far due to his proper savings plan. Another investor, being a
housewife said that she had invested in real estate and gold and rarely she save in non-
banking financial companies.
 Another interviewee admitted that hers was a large family comprising of four
daughters and two sons and that she had to manage their education and family expenses
resulting in lack of savings. Now, her children were well settled in life and so they could
save a sizeable amount.
 Another investor felt that the habit of savings should start from one‘s early part of
life. Later she could not imagine saving much in view of children‘s education and
marriage. She also held the view that one should be prepared to sacrifice certain luxuries
in life, so that one could lead a happy and peaceful life in future.

In a survey conducted by ORG-Marg Research Organization (1999) “Investors

Choices over the Investment Avenues” revealed that majority of investor‘s favored fixed
deposits in banks. Post Office Savings Schemes, Insurance Schemes, Bonds issued by
governmental organizations, Equity shares were preferred by investors in the next
category. Mutual fund schemes mainly meant for small investors were the least preferred.
Hence, the survey revealed that majority of investor‘s favored fixed deposits in banks.

51
The survey was conducted to know the important factor, which influences one to prefer
one investment avenue to another. Seven parameters namely capital appreciation, safety,
liquidity, rate of return, guaranteed return, manageability and tax shelter were
incorporated in the interview schedule to identify the preference of investors, Guaranteed
return coupled with capital appreciation was expected by most of the investors.

Pulpre Balakrishnan (2000) in his study “Savings Rate in Indian Economy Since 1991”
explained the latest trends in savings behavior in India. At the national level, three
institutions published and estimated figures of savings. In his view the CSO‘s estimates
were the most detailed and comprehensive and followed by the estimates of Planning
Commission and RBI. It was found that the total savings during the study were about 22
per cent and household sector alone contributed to 19 per cent of the total savings,
financial assets accounted for 15 per cent and the rest seven per cent were physical assets.

Naramisimhan.M.S and Somasundram.L (2000) in their research study titled “

Small – Savings”: Time for the Government to quit” have revealed that escalating fiscal
deficit caused increased in government borrowings, which in turn, crowded out credit
availability for investment and also keeps interest rate high. The study has found out that,
when government reduced the interest rate on small savings by 1%, it had definitely
reduced the interest burden on government finances. The study has concluded that it was
time to indicate interest rate reforms. One key suggestion of researchers to the
government was to make interest rate on small savings ‗market – oriented‘. Alternatively,
for the existing deposits the interest rate could be fixed at 11% for the next 3 to 5 years
and introduce the market – related rates for the new deposits. Center has to work on a
solution to this problem. Further it has been concluded that as there are many banks with
huge networks to mobilize retail savings, the government might now stop accepting small
savings.

Debabrata Das (2000), Co-operative Banking in Arunachal Pradesh: A case study,

Indian Co-operative Review, July, pp 48-53 35 Bank Ltd. He focused to analyze the

52
pattern of advances of the bank and to examine the trends of branch expansion and
deposit mobilization of the bank. The study covered a period of nineteen years from
1978-79 to 1996-97. He observed that the bank’s performance in deposit mobilization
was good. To improve the business, it could undertake Government payments like salary,
pension etc. Further, proper supervision for the utilization of loans should be done at
different stages frequently. Proper utilization of loan also would improve the recovery
position of the bank.

A workshop on Deposit Mobilisation organised by NIBM (1999) has concluded that

mobilisation of savings is one facet, and that an important one, of the various services
performed by banks. Banks should attract savings through suitable media of publicity and
extended personalised services.

Bhatt (2000) has examined the saving variable as a tool for financial planning in India. A
larger ratio of saving to income is beneficial to economic growth because it is only higher
saving that can be used as a source of capital in a capital scarce country like India. Hence,
mobilisation of saving is a crucial function of the planning process, just like using the
available capital in the most efficient way is also its major responsibility.

Jain (2005) has, in his study, concluded that by mobilising domestic savings on the one
hand and diverting appropriate channels on the other, banks play a pivotal role in
fostering economic growth.

The Banking Commission, chaired by Mr. S.G. Saraya (2002) has reported that the
increasing trend in placing deposits in banks help to bring to the organised market the
savings that might have remained idle or might have been wasted or used in creating
assets which are low in the scale of plan priorities.

53
Saxena (1998)has, in his study, concluded that the savings instruments are not competing
with bank deposits. As each saving instrument aims at satisfying one or the other motive
for saving and is different in nature, instruments of one group are not likely to affect
others.

Mathew (1999) has divided saving into several forms and studied them separately. It is
seen that the saving in India has been growing in absolute amount as well as in relation to
the GDP.

Kulkarni and Talele (2002) has found out that the real deposit rate has been either very
low or negative which provides little incentive for voluntary saving in banking
institutions on the part of people. A wide-ranging policy alternative that frees up the
capital market seems to be necessary to have a breakthrough in this persistent financial
crisis in India. The area in which major breakthrough has to come is the stock and bond
market that serve as the alternatives to the traditional modes of saving.

54
 Chapter – 3
Objectives
&
Research Methodology

55
3.1 MEANING OF RESEARCH

Research is a systematic method of finding solutions to problems. Research simply

means a search for knowledge. Research is an original contribution to the existing stock
of knowledge making for its advancement. It aims at discovering the truth. Research is a
process of systematic and in-depth study or search of any particular topic, subject or area
of investigation backed by collection, computation, presentation and interpretation of
relevant data.

3.2 Methodology of the Study

Methodology is the way to systematically solve the research problem. This job had been
completed by following systematic and sequential steps. Firstly, the research problem
was formulated. Secondly, an extensive survey had been taken place to gather relevant
and required literature. Thirdly, a research design had been determined. In the fourth
stage as sampling technique had been chosen which is called non probability judgment
sampling. Sixthly, secondary data was collected. At the final stage, collected data were
analyzed and arranged as per the study demands.

56
 SOURCES OF
INFORMATION

SECONDARY SOURCES
PRIMARY SOURCES

The study has been initiated to explore the insight of the critical issues of various deposit
schemes of the bank. So the study is an exploratory research. There are two types of
sources for collection of data and I am using secondary resources for my study and these
resources are explained below:

3.21 Secondary Data

The secondary data are those which have already been collected by someone else which
have been collected through the statistical process. Secondary sources of data consist of
all published and reported materials including books, journals, articles etc.

Secondary Data sources are

 Collection of information from Annual report

 Secondary data also have been collected from the different publications of the Bank.

 Other information was obtained from various corresponding files of the Bank.

 Internet was one of the important sources for secondary data collection.

3.3 Objective of study

57
3.31 Broad objective:

 General objective of the study is to examine overall deposit management system of

Bank of India.

3.32 Specific objective:

 To analyze various deposit schemes of Bank of India.

 To compare rate of interests on savings of various banks.

 To have a view of total deposits of the bank during last few financial years.

3.4 SCOPE:

This report covered the overall deposit system of Bank of India. And also includes the
relationship of the customers with the bank as well as the deposit principles covered by
the bank as a general banking system.

3.5 Limitations of the Study

The study is conducted with an objective to make a thorough study of deposit analysis
and management procedures The limitations are as follows:

 Limitation of time during internship period.

 The information acquired for the study was not adequate.

 Confidential documents or objects to the firm were not available to access.

As the internship is the first practical experience, it is not possible to know everything
about the bank.

58
 Chapter 4
Data Analysis and
Interpretation

59
 4.1 BANK OF INDIA
SHAHEED UDHAM SINGH NAGAR BRANCH – ZONE
SCHEDULE 3 – DEPOSITS
as on 31.03.2017
I. DEMAND DEPOSITS Amount (in Rs.)
a.) Current deposits 18532702.52
b.) Call deposits 0.00
c.) Sundry deposits ( Total as per CA16) 5086293.26
d.) Overdue TDR ( less frm TDR item III ) 0.00
Total I 23618995.78
II. SAVINGS BANK DEPOSITS 293819952.31
III. TERM DEPOSITS
a.) Fixed deposits 0.00
b.) Short deposits 6094433.00
c.) Monthly income certificates/ Q.I.C 61557162.17
d.) Recurring deposits 9499846.60
e.) Housing linked deposits 0.00
f.) Double benefit deposits 434174211.46
g.) Star benefit deposits 0.00
h.) FCNR deposits 0.00
i.) Mamta deposits 0.00
j.) NHB-HLA scheme 0.00
k.) Jama vaibhav yojna 0.00

60
l.) BOI star 0.00
m.) Star suvidha deposits 0.00
n.) Certificate of deposits 0.00
o.) Gramin tara deposits / stock invest 0.00
p.) BOI floating rate deposits scheme- II 0.00
q.) BOI savings plus 14023000.00
r.) BOI current deposit plus 4357901.00
s.) EEFC deposits 0.00
Sub total 529706554.23
Less: overdue TDR (added in item I abv) 0.00
Sub total of TDR ( total of a to s ) 529706554.23
TOTAL DEPOSITS ( TOTAL OF I + II + III) 847145502.32
SUPPLEMENTARY INFORMATION
DEMAND DEPOSITS 23618995.78
a.) From banks 0.00
b.) From others 23618995.78
SAVINGS BANK DEPOSITS 293819952.31
a.) From banks
b.) From others 293819952.31
TERM DEPOSITS 529706554.23
a.) From banks 0.00
b.) From others 529706554.23
TOTAL DEPOSITS TOTAL* 847145502.32
a.) From banks 0.00
b.) From others 847145502.32
TOTAL DEPOSITS – TOTAL I + II+III 847145502.32

61
4.2 COMPARISON OF DIFFERENT TYPES OF DEPOSITS
FOR LAST THREE FINANCIAL YEARS

(In lakhs)
As on As on As on
31.03.2015 31.03.2016 31.03.2017
DEPOSIT
Current 120 289 236
Savings 1868 2276 2938
Total CASA 1988 2565 3123
deposits
Term 3708 4716 5297
Total deposits 5696 7281 8471

62
1. There is a rise in saving deposits of bank of India in the financial years
2015-2016 and 2016-2017 as compared to saving deposits in the financial
year 2014-2015.
2. Current deposits had risen in financial year 2015-2016 as compared to
current deposits in 2014-2015.
3. There is a fall in current deposits in financial year 2016-2017 as
compared to previous year.
4. Total CASA deposits are rising consistently.
5. Therefore, Total deposits are also rising.

4.3 COMPARISON OF RATES OF INTEREST OF VARIOUS BANKS

ON SAVINGS

63
 (IN PERCENTAGE)
ROI/BANKS BANK OF PUNJAB CANARA ALLAHABAD
INDIA NATIONAL BANK BANK
BANK
7 to 14 days 4.00 4.25 4.2 4.00
15 to 30 days 4.25 4.25 4.2 4.00
31 to 45 days 4.25 4.75 4.5 4.50
46 to 90 days 6.00 5.75 4.75 6.00
91 to 179 6.25 6.00 4.75 6.00
days
180 to 269 6.50 6.25 6.35 6.25
days
270 to 364 6.50 6.25 6.35 6.50
days
1 YR< 2YR 6.70 6.80 6.65 6.75
2 YR< 3 YR 6.65 6.70 6.65 6.75
3 YR<5 YRS 6.60 6.70 6.65 6.50
5 YRS< 10 6.50 6.60 6.25 6.50
YRS
SRC +0.50 +0.50 +0.50 +0.50
CITIZENS
SAVING 4.00 PA 4.00 PA 4.00 PA 4.00 PA

INTERPRETATION:

1. Rate of interest of bank of India and Allahabad bank on savings are

almost similar.
2. Rate of interest of Punjab National Bank on savings are slightly above

the rates of bank of India.

64
3. Rate of interest of bank on India on savings are higher than the rates of

Canara Bank.

65
 Chapter -5
Findings & conclusion

FINDINGS

66
Bank of India makes so much difference in the deposit in different securities
rather than previous year to cope with market investment composition.

 Bank of India (shaheed udham singh nagar branch) has more term
deposits this year as compared to previous year.
 Bank has introduced various deposit schemes for every type of customer.
 Total saving deposits of the branch have also risen.
 Total CASA deposits are also rising during past few years.
 Even the branch got 3rd prize in Ludhiana zone for total CASA
deposits for the financial year 2016-2017.
 Bank is using latest technology to meet customers demand on time.
 Right person is placed at right job.
 Bank provides smooth services to the customers by reducing time
consumption.
Therefore, bank is contributing a lot towards development of the country.

CONCLUSION

67
The popularity of banks is increasing day by day which leads to increase in
competition as well. All the commercial banks are offering almost same
products & services and same operation system. But the way they provide
the services are different from each other. And people prefer the bank, of
which service is easily accessible and understandable.

Bank of India is a commercial bank founded in 1906. It has been

government owned since nationalization in 1969. It innovates new products
& services to attract more customers. In short, Bank of India is such a
commercial bank which is rendering all commercial banking services to the
customers in addition to make available investment policies. They believe in
developing strong interpersonal relationship with every customer. As such
they are morally bound to provide high quality banking services with the
latest technology and making all efforts to introduce their innovative
products to their existing and prospective customers.

From the above study regarding deposit schemes, It is concluded that bank is
providing various schemes for term as well as demand deposits for every
type of customer. Also, the deposits of the branch have been consistently
rising from past few years.

Therefore, bank of India is contributing a lot towards the economic

development of country.

BIBLIOGRAPHY

68
BOOK:
“SANDIPANI”, ONE PAGE MANAGER by Bank of India.

WEBSITES:
http://www.bankofindia.co.in/english/home.aspx
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%202.pdf
https://en.wikipedia.org/wiki/Deposit_account
https://www.deposits.org/dictionary/term/bank-deposit/
https://en.wikipedia.org/wiki/Bank_of_India
http://www.bankofindia.co.in/english/history3.aspx
https://www.dynamiclevels.com/en/bank-of-india-company-profile
http://profit.ndtv.com/stock/bank-of-india_bankindia/reports
https://www.scribd.com/doc/127479144/A-Study-of-Bank-Deposits-and-
Mobilisation-With-Reference-to-Nationalised-Banks
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195-203.pdf
https://www.ukessays.com/dissertation/literature-review/literature-review-
on-funds-mobilization-strategies.php
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69