2nd Issue E-gyan, October-2013

E-GYAN SBLC, MASULIPATNAM

E-GYAN, PART-2 OCTOBER-2013 1

“e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

EDITORIAL “Life is simple” is the most quoted proverb by many philosophers and people of wisdom from times immemorial. “Life is not such an easy thing. It is more complex beyond one’s imagination” is also quoted by equally well versed and eminent people on equally good number of occasions. Why such contradictory statements is the million dollar question which may give rise to another assumption – “Wise men can state anything to their own comfort”. However, the reality is that the contradiction is not pertaining to the above statements but to the awareness levels of the individuals and piquant situations in which those individuals are placed as well as to the context of the situation. The finer point of the above analysis is that awareness makes complex situations simpler and ignorance makes simple situations more complex. Being aware and not being aware is the state of individual. Our small contribution to the SBI community in the direction of creating awareness and enriching knowledge is the current release of e-GYAN for October, 2013 which is a token offer of our faculty to the large SBI community. Hope you may like it! We deeply acknowledge the inspiration derived from our Deputy General Manager & Cir Dev Officer Sri. Prabhakar HemantKumar Pammi, Asst General Manager (HR) Sri. R.S.N. Murthy and Chief Manager (L&D) Shri. G. Vasudev Prasad which resulted in coming out with the e-editions. D.SYAM PRASAD ASSISTANT GENERAL MANAGER (TRAINING) STATE BANK LEARNING CENTER MASULIPATNAM

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ACCOUNT STATEMENT ON SINGLE PAGE Compiled By Sri. P.Brahmananda Rao, Manager (Training) Many of the customers request branches for statement of account periodically. When we try to print account statement on laser printers (any make), statement of one page will be printed on two pages and column alignment will be in such a way that it will be very difficult to comprehend. However, our customers accustomed to this type of account statement. But look at the paper being wasted at our 15000+ branches (may be with a few exceptions). SETTINGS TO BE CARRIED OUT IN SERVER FOR GETTING PRINT ON A SINGLE PAGE: BROTHER PRINTER: Go to Start -- Setting -- Click on Printer and Fax -- Right Click on the Printer connected with Server --Click on Printing preference -- Click on Basic Tab -Select Paper size JIS B4

1. Click on Advance Tab -- Select Fit to Page Size -- Select Letter -- OK 3


HP LASTER PRINTER Go to Start -- Setting -- Click on Printer and Fax -- Right Click on the Printer connected with Server --Click on Printing preference -- Click on Effects -- Select Print Document on—Select Paper Size-Letter----Uncheck-Scale to Fit—Enter 91%--Apply -- ok

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CANNON PRINTER: Go to Start -- Setting -- Click on Printer and Fax -- Right Click on the Printer connected with Server --Click on Printing preference -- Select Page Size – B4—Check Manual Scaling ----Enter 80 %--Apply -- ok

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GO GREEN TREES

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SAVE PAPER

SAVE


KNOW YOUR CHEQUE (KYC OF CHEQUE) Contributed by Sri.V.Venkata Narayana, Manager (Training) As you may be aware, adherence to ‘CTS-2010’ standards has inherent advantages as the security features in these Cheque forms help the presenting banks to identify the genuineness of the drawee banks’ instruments while handling them in the image based scenario. The homogeneity in security features acts as deterrent against frauds and the fixed field placement specifications facilitate straight-through-processing at drawee banks’ end through the use of optical/ image character recognition technology. As per RBI’s directives, following mandatory security features have been incorporated in the CTS-2010 Cheque standard: Paper: All security forms of the bank are now printed on MICR grade cheque paper. Difference between MICR grade cheque paper and other security paper are on technical parameters. Bleaches are not mixed with pulp during the manufacturing process of the security paper. Security papers are not totally white & have creamish tinge.

(CTS-2010 Standard paper should not glow under Ultra-Violet (UV) light i.e., it should be UV dull) Watermark, with the word “CTS-INDIA: All cheques shall carry a standardised watermark, with the words “CTS-INDIA” which can be seen when held against any light source. This would make it difficult for any fraudster to photocopy or print an instrument since this paper would be available only to security printers handling cheque printing.

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The present water mark containing our Bank’s logo and name (both English & Hindi version) as supplementary watermark. VOID pantograph: Pantograph with hidden / embedded “VOID” feature included in the cheques. This feature will not be visible on the scanned image at the resolution specified in CTS but will be clearly visible in photocopies and scanned colour images as resolution used in such cases would be above the prescribed CTS standards. This would act as a deterrent against colour photocopy or scanned colour images of a cheque.

(CTS 2010cheque having most important feature VOID pantograph – Can be checked by photocopy of the cheque) Bank’s logo in Ultra Violet ink: Bank’s logo printed in ultra-violet (UV) ink. The logo will be captured by / visible in UVenabled scanners / lamps. It will establish genuineness of a cheque.

(Standard bank’s logo in CTS cheque visible through UV lamp) Standardized fields placement: All Cheques are subject to Standardized Field Placement such as Date, Payee Name, Amount in Words and Figures, Drawee Account No., Drawee Signature space etc have 8


been standardised and the new cheque forms should adhere to these standards and all Cheques are printed in light pastel colours.

(Copy of Sample Cheque indicating field placement) Cheque printing Colours and Background: All cheques are required to be printed in light pastel colours. SBI Cheques are printed in light blue colour (Multi City Cheques) and in light pink colour (Bearer/Order cheques other than Multi City Cheques).

Pre-printed account number field: All cheques should, as far as possible, be issued with the account number field preprinted. This should be considered must for current account holders and corporate customers. Micro Lettering in place of line: All Cheques will have micro lettering in place of line for payees’ name and amount in words. Micro lettering of cheque can be verified through magnifying glass.

(Micro Lettering under magnifying glass) New rupee symbol: Banks using new rupee symbol” ` “instead of using bilingual format at CAR (Courtesy Amount Recognition) amount in figure field.

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(Standard CTS cheque with new Rupee Symbol) Printer’s name along with printing “CTS-2010” establishing CTS-2010 compliance:

(Printers Name along with printing CTS 2010) Fugitive ink: Background design shall be printed in fugitive ink which gets smudged on contact with water. If the ink does not smear, the cheque treated as fake and payment should not be made. In case, any fake cheque for Rs.25,000/- and above is detected which does not contain any mark of smear, it would be assumed that no testing had been carried out.

(Fugitive Ink test by water droplet) The testing of fugitive ink must be carried out by the branch officials for payment of cheques for value Rs. 25000/- and above as per instructions contained in e-circular No.NBG/S&P-SP/21/2009-10 dated 19.12.2009. Secondary fluorescent ink:

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The portion where we dropped water on cheque for testing for fugitive ink and got smashed and also glow in UV light (the smashed area only). Some other important features of our cheques:  Non Multicity Cheques are issued either as BEARER or ORDER CHEQUES  Multicity Cheques are always ORDER CHEQUES Prohibiting alterations / corrections on cheques: No changes / corrections should be carried out on the cheques (other than for date validation purposes, if required). For any change in the payee’s name, courtesy amount (amount in figures) or legal amount (amount in words), etc., fresh cheque forms should be used by customers. This would help banks to identify and control fraudulent alterations. Benefit of the CTS 2010 standard cheque:   

The stronger security features in the CTS 2010 cheque makes it easy for the presenting banks to confirm the genuineness of the drawee bank’s instruments. The standardization of security features would act as a deterrent against fraud and enhance customer safety. The fixed field placement would enable easy processing at the drawee bank’s end.

FACSIMILE OF FORGED CHEQUES:

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Water Droplet Test should be done on two places on the Cheque to see: i) Back ground Print is smudging with water application, ii) Bold Prints of the cheque remain intact & do not smudge in water.

Method to be adopted. a) Put water droplet just below the Pantograph (VOID) or below the drawing limit clause to see that Background Printing is smudging with application of water droplet. Cheque is deemed to have passed the test if it does so. b) Also put water droplet on BOLD PRINTING areas like on the top, where Bank Logo and Bank Name is printed ,these are supposed to be printed with permanent ink and should not smudge with application of water droplets. If it smudges in water, the cheque should be suspected as fake cheque and Drawer / Home Branch should be contacted immediately.

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THE PROBLEM WITH “SMS ALERTS” Contributed by Sri.G.V.Rao, Chief Manager (Training) Many a time our customers are told- “Sir, from here on you will start receiving SMS alerts on your mobile.” But the customer gets annoyed very soon as he never gets the SMS. The visibility which he expects about his transactions gets affected along with the trust and confidence on the bank’s product. The problem is very simple. Troubleshooting the problem is even simpler. Many of us believe that setting “SMS Required” to “YES” under “Miscellaneous” of “Deposit Tabbed Screen” at the time of Account creation will enable the customer for SMS alerts. But not so! Along with the above step, the SMS parameters are to be set up at account level by choosing the option Deposit /CC/OD Accounts & Services--- Amend-Deposit/CC/OD Account-SMS Details and setting the 7 parameters for messages on different occasions. All of them may appear “YES”. Even then, transmit the screen and get it authorized. Your customer will be a happy SMS customer.

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If the customer fails to receive SMS Alerts despite doing all this, please contact at the following e-mail addresses and contact numbers. E-MAIL ADDRESSES:-

1) [email protected] 2) [email protected]

CONTACT NUMBERS:-

1) 022-27583717 2) 022-27561655

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STATE BANK SECURE – SOFTWARE TOKEN (SECOND FACTOR AUTHENTICATION) Contributed by Sri. P.Brahmananda Rao, Manager (Training) State Bank Secure is a mobile resident application which generates the one time password (OTP) in lieu of SMS OTP, for authenticating transactions in OnlineSBI. It generates OTP instantaneously and eliminates the need for SMS OTP. The “State Bank Secure” functions independent of the mobile network, hence change of your mobile number/service provider will not affect your online transactions. The mobile resident application “State Bank Secure” is PIN protected on your hand set / device to prevent its misuse by unauthorized person. PROCEDURE TO OBTAIN “STATE BANK SECURE”: After logging on to ‘OnlineSBI’, in the Profile section under State Bank Secure, you will find a link “Apply for State Bank Secure”.

Click on that link which will generate a

reference number and a form which needs to be submitted to your branch. Branch will approve your request if in order and will provide you a Pre-printed kit or you will receive the password kit through post. “STATE BANK SECURE” SOFTWARE: The software can be downloaded from Google Play store/ Android market. PROCEDURE TO ACTIVATE: Once you receive the Pre-printed kit, you will have to enter the kit credentials on “Sate Bank Secure” link under Profile section of OnlineSBI. You will have to enter pre-printed kit number and the password provided on the kit (Please ignore the username mentioned in pre-printed kit). After validation by the system, you will be shown serial number and activation code for activating your software token.

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It is advisable to download and install State Bank Secure on your hand set / device before hand for immediate activation by inputting the serial number and activation code in the application. DEVICE CODE: When you activate the State Bank Secure by inputting serial number and activation code, you will immediately get the screen in your hand set / device showing device code, which needs to be entered in OnlineSBI during first time activation process. By this registration process will be completed. ADVANTAGES TO THE USER: User can authenticate online transactions / operations in OnlineSBI by generating OTP from State Bank Secure instantaneously. The facility is going to be launched for public shortly.

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DIGESTING SUCCESS AND HANDLING POWER Success is more a function of consistent common sense than it is of genius. (An Wang) Contributed by Sri. P.Padma Babu Goud, Manager(Training) Plenitude and prosperity make us lazy and inactive. When our power is secure we don’t feel the need to act. This becomes a serious danger, especially for those who achieve success and power at an early age. Playwright Tennesse Williams, for instance, found himself skyrocketed from obscurity to fame by the success of his play, The Glass Menagerie. The play was a smash-hit in Chicago, burst its way to Broadway, and won the New York Drama Critics’ Circle Award for best play of the season. “The sort of life which I had previous to this popular success,” he later wrote, “Was one that required endurance, a life of clawing and scratching, but it was a good life because it was that sort of life for which the human organism is created. I was not aware of how much vital energy had gone into this struggle until the struggle was removed. I sat down and looked about me and was suddenly very depressed.” With no fresh challenges in sight, with no more mountains to scale, Williams eventually had a nervous breakdown. This, in fact, proved good for him. He was in the valley once again. He could see new mountain slopes, which beckoned and challenged him to climb again. He started his journey again and produced his most famous work, a Streetcar Named Desire. Russian novelist, journalist and short-story writer Fyodor Dostoyevsky’s psychological penetration into the human soul profoundly influenced the 20th-century novels. He presented characters with contrasting views about freedom of choice, socialism, atheism, good and evil. Interestingly, whenever he wrote a successful novel, Fyodor would feel the financial security he had gained which made the act of creation unnecessary. He would then go to the casino and gamble away his entire wealth so he could be reduced to poverty once more and be able to write again. Not just monetary success, but even power has a curious way of climbing. It goes to the head,makes those around you restless and unhappy and leaves you delusory. A journalist was once visiting a town to meet the Mayor, but before the meeting, he went to a few people and enquired from them about him. The following were some of the responses he received.

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The petrol pump attendant said the Mayor was a bum, a housewife remarked he was lowlife, while the priest of the town thought the man was a scoundrel. Everyone, the journalist spoke to, held a poor opinion of the Mayor. So, while chatting with the Mayor, the journalist finally asked him, “How much do they pay you here?” “Oh, nothing. I took this job just for the honour of it,” the Mayor replied. He had no clue that contempt lurked behind the deferential exterior of people towards him. So when power gets to one’s head, one is greatly inclined to become insensitive and vain, and it is very important to guard oneself against this vanity, lest we turn into caricatures of ourselves. Also, if the past successes are not quickly digested, the psyche begins to disfigure. It is imperative, therefore, to quickly digest the power one achieves. There are several ways of doing it. First every achievement should be viewed as a milestone, not as a mountain peak. If past glories begin to weigh heavier than your future dreams, take it as a warning that decay is setting in. Enjoy the adulation, respect and comfort that success brings, but don’t become complacent. Remember, what made these pleasures possible and sustained the efforts that led you till this point, as the thrill of life lies in the journey; destinations are mere parking spaces to stretch your limbs and refuel. Action is life, lassitude is death. So when you reach one landmark, relax and relish the experience, but do not abandon the effort required to travel further. Set the bar higher. Or look at people whose achievements are bigger than yours. Seeing your place in the larger scheme of things also helps change one’s perspective as this story illustrates. Socrates was sitting in his school with several of his students, when an extremely rich and famous man of Athens entered the hall to meet him. Socrates didn’t notice his arrival and continued his discussions with his students. The man felt affronted but still decided to wait a while. But with every passing minute, his anger mounted. After about half an hour of waiting, he suddenly shouted at Socrates, “You don’t know who I am?” Socrates looked at his visitor and said, “let us decide that too.” He called for a world map and asked this man to point out where was Athens in the map. After careful scrutiny, the man pointed to a little speck. Socrates then asked him to point out on the map where his estate was, where his palace was and so on. Realizing those possessions that he was so proud of were specks within specks in the larger scheme of things, the man was at a loss and came to terms with his own insignificance. The lesson was

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completed. Socrates folded the map and handed it over to him as a reminder of his humble status in the world. Similarly to be conscious of our mortality grounds us. Another tip for digesting power is to develop your feminine polarity. Man is aggressive by nature; woman is compassionate. The Bible states, God completed the creation of the world in six days, yet every subsequent day, he kept refining his creations until he created man. Even then he was not satisfied. So he took a bone from man’s rib created a woman – a more refined version of man. In fact, a man becomes complete and capable of great achievements only when he recognizes his own feminine polarity - his warm, giving and kind self. Cultivating a sense of humour about oneself also helps handle success. Humour grounds us and helps us connect with others thus proving a good antidote for the isolation that power brings. The ability to laugh at ourselves insulates us from other ego mistakes. Understanding the principles of Tao, the hidden order that governs the universe, is the key to handling power. The principle of cosmic justice is based on the maxim that a person reaps what he sows. The doctrine of karma and belief in divine retribution are different expressions of a common principle that the world is governed by the principle of justice. Justice (balance) is inherent in the fabric of the cosmos. Thus when giddy with power we lose touch with our inner rhythm, or the Tao, and behave recklessly or cruelly, retribution does come. It perhaps does not come from some God sitting in the heavens, but from within us when, due to our physical and mental imbalance, we are no longer available to our possibilities. The recognition of the role of luck in our achievements also helps keep humility alive in us. It is indeed not just one’s prowess, but also providence that leads him to a position of power. This realization subdues the ego. Lastly, we need to learn to love our people and be kind to them. Love is and enzyme that digests power, and compassion is the best antidote against power’s corrupting influence.

SOURCE: PAVAN CHOUDARY’S BOOK – HOW A GOOD PERSON REALLY CAN WIN 19


TRANSFORMATIONAL LEADERSHIP – A PANACEA FOR ORGANIZATIONAL DITHERING Contributed by Sri.G.V.Rao, Chief Manager (Training) In the democracy which I have envisaged, a democracy established by nonviolence, there will be equal freedom for all. Everybody will be his own master. It is to join a struggle for such democracy that I invite you today. Once you realize this you will forget the differences between the Hindus and Muslims, and think of yourselves as Indians only, engaged in the common struggle for independence – Sri. MOHANDAS KARAMCHAND GANDHI, the exemplary transformational leader standing tall above all those leaders in that creed.

I have a dream that one day this nation will rise up and live out the true meaning of it’s creed: “ We hold these truths self evident :that all men are created equal.” – The vision of Martin Luther King of a future desired state in his popular “I have a dream” speech. He may be cited as standing in the frontline of transformational leaders.

Today many organizations in the world are struggling- to find a secured place in the market thwarting intense competition, to cope up with the umpteen and unpredictable changes, to fine tune themselves to the several complexities appearing like flash bulbs on business landscape etc. Corporations are hunting for suitable business strategies. They are in search of their core competencies. A constant worry for the future is taking a heavy toll of their present stake. No doubt, today’s market realities are extremely complex and most of the time they are fast changing. Technology has ushered in a new era- suddenly demarcation between businesses vanished. Organizations engaged in one area of business started expanding their horizons taking advantage of the technology and the phenomena perhaps 20


influenced services sector more than primary sector. New organizations emerged on the global business turf with newer and superior technologies and globalization is fuelling the germination and the growth of new economy organizations. In India, post-1990s witnessed the mushrooming of new organizations across service sector taking advantage of LPG (Liberalization, Privatization and Globalization). Old economy organizations were grappling for growth and sustenance and some of them struggled hard to stay back in the market. Perhaps, it is the general slowdown caused by so called global meltdown, which prevented the fall of many traditional, conservative old economy organizations in India, which failed to change themselves. In the above context, most of the time the unanswered question lurking in the dark is the role leadership has to play across all

organizational layers-right from the top

management to a supervisor working at the gross root level. What model of leadership is required in these turbulent times is attracting the academician’s attention more frequently. In the above backdrop, the recent focus of much academic debate is on “transformational leadership”, which is one of the four broadly accepted contemporary leadership models. The other three contemporary leadership models are- transactional, charismatic and authentic. This recent obsession of management academicians with “transformational leadership model” doesn’t throw a surprise as the model confirms to the present day demands. According to certain academicians like P.L.Cox, there are two fundamental categories of leadership- transactional and transformational. Some contemporary experts in management and human behavior like McGregor Burns described transactional model as the simple exchange of tangible compensation and rewards for the work done and loyalty exhibited by the followers. In this process, the leadership directs and motivates the followers by appealing to their own self interest. 21


Transformational model was described as engaging the followers at much higher level i.e.; at moral level or at higher order intrinsic needs above Abraham Maslow’s basic hierarchical needs, thereby inspiring followers to embrace a new vision of possibilities and developing followers into leaders and leaders into moral agents. The congruency of various academicians’ postulates regarding “transformational leaders” can be summarized as under:  Facilitates people in progressive redefinition of mission and vision.  They anticipate future trends and prepare to move the organization in that direction in a proactive manner.  They are courageous, ethical and full of initiative.  They are assertive risk takers and do not hesitate to seize new opportunities.  They are thoughtful thinkers who can understand organization in the context of environment and can formulate and implement strategies by inspiring followers to embrace the path of new possibilities.  They make employees or followers to look beyond their self-interests for the collective good.  They convert followers into leaders and leaders into better leaders.

Most authors proposed that transformational leadership includes four key components1.

Inspirational

motivation

2.Intellectual

stimulation

3.Idealized

influence

4.Individualized consideration. 1. Inspirational motivation: All transformational leaders can visualize future which may be significantly different from the present and they guide the followers into future by providing them with a sense of meaning and challenge as well as by creating a sense of commitment to the 22


vision of the future. They inspire by what they say and do, perhaps attributable to their charisma or aura. They play on the intrinsic motivators of the followers like sense of pride, self esteem etc. 2. Intellectual stimulation: “Think out of the box” is the biggest slogan of transformational leadership. Their motto is not to leave any questioning of us to our competitors and better to question ourselves before that. Creating new ideas and exploring for innovative solutions is a sought after thing for them and in this process they do afford high tolerance towards failures, mistakes and do not resort to blame game. They positively subscribe to abandoning of practices which are no longer useful and whose relevance is a question. Followers become aware of their capacities and capabilities. 3. Idealized influence: Followers of transformational leadership identify themselves with the leader. Followers repose ultimate trust in such leaders and they admire him to the hilt. To earn this idealized influence, transformational leaders often consider the needs and interests of the followers over their own, sometimes involving sacrifice of their own interest. Though transformational leaders may use little power to get their own interests served, they use all their powers to benefit their followers, which further the idealized influence. They are very often referred to by followers as makers or mentors of their careers. 4. Individualized consideration: Transformational leaders perform all types of supportive roles to their followers like mentor, coach, teacher, facilitator, counselor etc and bestow individual consideration depending on their individual talent, capacity and resourcefulness. Followers are not only empowered, but also guided in carrying out the task without any fault fingering. According to many management experts, transformation leadership creates synergy, that synergy which is needed to bring people together for exploring 23


new alternatives appearing dim on the horizon and better than the individual alternatives put forward by each of them. It is no wonder that transformational leadership creates competencies required

for

strategic

change

into

future

enabling

organizational

improvement, effectiveness and positive shift in organizational culture. Hence in these days of environmental turbulence where nothing is static or even semi-static, it is the futuristic vision of transformational leadership that can rescue organizations from falling into oblivion. The inference may be truer for Public sector Undertakings of India which are having lifetime employment practices and as such wherein the inertia against

change

is

more

felt.

Transformational

leadership

can

yield

performance far beyond expectations. References: 1. Bass, B.M. – Bass & Stogill’s Handbook of Leadership. 2. Anderson T.D – Transforming leadership: Equipping yourself and challenging others to build the leadership organization. 3. Some articles from journal of leadership education.

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TIT-BITS FROM KHL (KNOWLEDGE HELP LINE) 01. How to review/renew KCC Limit. What are the necessary documents to be obtained for review/renewal of KCC Limit. KCC Limit is reviewed annually but after how many Years KCC Limit need to be renewed. Answer: Dear Sir, As per the revised KCC scheme one time documentation ie., AB1,AB2 & AB3 where ever applicable need to be obtained for the Maximum permissible limit as per the revised documents which contain the Maximum drawl limit for every year. It is valid for 5 years. The KCC is reviewed/renewed on the repayment of the amount before the due date, i.e., 31 st Jan for Kharif and 31 st July for Rabi. Simple declaration (Details of crops raised/proposed) by farmer from the second year onwards, as per our renewal application is to be obtained. 02. Sir, In our SBI Realty Home Loan, 1. Within 2 years whether the Borrower has to finish the construction or commencement of the construction is enough? 2. If the commencement of construction is enough, then what is the period to complete the construction? Can he take his own time, say 5 years to complete the construction? 3. Can the new house can be built for very low value? (Eg. Land cost Rs.15.00 lac, house built for only Rs.2.00 lac) Answer: Dear Sir, SBI Realty is introduced with a view to effectively tap the home loan potential available in the market. As per this scheme the maximum period stipulated for construction of house is 2 years from the date of availment of loan. Accordingly, branches should obtain suitable declaration from such borrowers, undertaking to construct a house on the said plot of land within the aforesaid period and also authorizing the Bank to charge higher rate of interest as deemed fit by the Bank or even recall the loan, in the event of failure to construct the house within the above stipulated periods. Penalty in case of delay in construction: Interest rate as applicable to Personal Loan against Mortgage of Immovable Property or 5.25% above the Base Rate, whichever is higher, will be applied if: Construction of house is not commenced within the maximum stipulated period. The higher interest rate will be charged after the expiry of period stipulated for commencement of construction. However once the 25


construction of the house is commenced on the plot financed by the Bank, the interest rate spread vis-à-vis Base Rate/SBAR in the account contracted at the time of original sanction of loan will be restored.

03. Sir we are maintaining fixed deposit of 2 rural co-operative banks. The TDS is deducted from their respective accounts. what are the tax exemptions certificates are to be obtained from the banks Answer: Tax is NOT deductible at source from interest payable to the following: 1. Any Banking company to which the Banking regulation Act,1949 applies. 2. Any Co-operative society engaged in carrying on the business of banking. 3. Any financial institution/ corporation estabilished by or under a Central, State or Provincial Act. 04. Sir, a non-IOI DD issued on 19/01/2010 in favour of "State Bank of Hyderabad" payable at SBH Sathupalli for Rs.6840/-. This DD belongs to MRO Tiruvuru and came for cancellation. While cancelling the DD system replies as "no branch record found" the details of DD are DD no : 134396 date : 19/01/2010 prefix: 2701 serial no : 891423 key : nijbuq issuing branch : tiruvur (0794) drawee branch : sbh sathupalli (0293) please guide us on how to cancel it? Answer: Payment and reversal of old drafts are normally blocked by DRD (Draft Reconciliation Department), Corporate Center.The above draft mentioned by you is sufficiently old and hence might have been blocked by DRD for payment / reversal. Therefore you take up with DRD for releasing the above entry so that reversal can happen at your end. 05. Sir, please explain what s RCSA? Answer: It is a technical, systematic and extremely focussed process for identifying significant and dominant risks that may crop up from the products, processes and activities of organizations so that a technical and professional framework for risk mapping can be created with the objective of assessing the risk profiles and identifying risk ownerships. the end process of RCSA is to chalkout risk mitigation plans and reporting the above 3 processes of identification, assessment and mitigation plans in structured and 26


implementable ways. 06. A institution like Ram Krishna mission wanting to purchase a ambulance by opting a loan option. i just want to know if the credit proposal could be processed or not. if yes than by which scheme and if no than why not? Answer: Most of the Non-Profit organizations are organized in the form of Trusts. If the Trust Deed and other related bye-laws permit borrowings for a specific purpose, then the same can be financned by Banks. However the same is subject to regular screening for Technical/financial feasibility, Commercial/economic viability etc. 07. Is it necessary to be witnessed by an a/c holder for a payment of withdrawal to an "LTI"? Answer: Sir, We reproduce the Bank's guidelines as per the Master Circular on Savings Bank Account in respect of LTI Account transactions. Ordinarily, only personal withdrawals against production of the relative pass-book will be allowed to an illiterate depositor. When he desires to effect a withdrawal he should call at the Bank and present his pass-book to the operator. After the depositor is identified on the basis of the photograph on the Bank¿s record and/ or the identification marks, if any, recorded on the account opening form, the operator will fill in the withdrawal order form for the required amount. The depositor will thereafter affix his left hand thumb impression on the face of the withdrawal order form at the place provided for the signature of the depositor and also on the back of the form. Before passing the withdrawal for payment, the passing official will arrange to call for the depositor and, by personally referring to the photograph and/ or the identification marks, if any, ensure that the withdrawal is being infact made by the depositor himself. He will also ascertain from the depositor the correct amount of withdrawal and in token of having done so, affix his initials against the amount mentioned in the withdrawal order form. 08. Many of our customers are complaining that they are not receiving SMS alerts when withdrawing money from ATM and from CBS as well. But they are getting SMS alerts when they are crediting the amount. We have checked in the CIFs and confirmed the mobile number is correct and also checked at account level whether there was yes at SMS option or not. How to resolve 27


this? Answer: Go to Deposit CC OD accounts> Amend >Drop Down option: SMS Details, Enter particulars in the screen. Also in Deposit CC OD accounts > Amend > Tabbed Screen, in core options, remove all zeros in lower part of the screen including Extension counter.

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2nd Issue E-gyan, October-2013

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