Summer Internship Report

On

“Operational
Operational aand Financial Activities of Allahabad Bank”
Bank

Submitted toward the Partial Fulfillment of the Requirement for the

Award of the Degree of Master ooff Business Administration (F&C)
(F&

Under the Guidance of

Mr. Anil Kumar Srivastava (Chief Manager)) in

Allahabad Bank
Bank, Hazratganj Main Branch,, Lucknow

Submitted To Submitted by
Dr. Mohd. Arif Shivani Yadav
Assistant Professor Sem rd
MBA(F&C), Sem-3
IMS Roll No.:180012135261
180012135261
Batch : 2018-2020
2018

Institute of Management Sciences(IMS),

University of Lucknow (New Campus), Lucknow

1
2
 DECLARATION

I do hereby declare that the report titled “Operational and Financial Activities of
Allahabad Bank” is executed as per the course requirement of two year full time MBA (FC)
program of Institute of Management Sciences , University of Lucknow.

This report has not been submitted by me or any other person to any other university or
Institution for a degree or diploma course. This is my own and genuine work.

Place : Lucknow Signature :

Date :

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 ACKNOWLEDGEMENT

A report in a bank is an experience wherein the knowledge gained from the institute is
applied in a practical manner. I had an opportunity to complete my summer internship report
in “Allahabad Bank, Lucknow Hazratganj Main Branch”

The report was a great source of learning and a good experience as it made me aware of
professional culture and conducts that exists in an organization.

I hereby express my heartfelt gratitude to my internship guider Mr. Anil Kumar Srivastava
(Chief Manager) in Allahabad Bank, who gave me a better guidelines during my summer
internship in Allahabad Bank. I would also like to thank OSD Prof. Vinod Singh Sir.

In addition I would like to thank the staff members and all my seniors in Allahabad Bank
who helped me in the successful completion of this summer training.

The rich experience, which I gathered during my short stay with the bank will act as a
valuable tool in my future. I will always carry very fond memories of the training days.

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 EXECUTIVE SUMMARY

The internship report consists of profile of the banking sector (industry), its origin, the
functioning, how the banks are classified on the based on function, and the trends being
followed in the industry. Besides the above mentioned this report is focused on core banking
and to be more precise it discusses the inner details of the situated in Hazartganj main branch
of Allahabad bank is a nationalized bank, origins and its setup in Allahabad with its
headquarters in Kolkata, India.

Allahabad bank came to India and gave banking sector a new horizon, today Allahabad bank
has set firm foot in the industry.

The report further guides through the department and working of the general banking. The
activities taking place in the bank, the various products of banking are discussed in the report.
The report is a very good description of what Allahabad bank and its significance.

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 TABLE OF CONTENT

Certificate
Declaration
Acknowledgement
Executive Summery

CHAPTER NO. CHAPTER NAME PAGE NO.

1. Introduction 7-9

I 2. Bank profile 10-14

3. Product of the Allahabad Bank 15-58

4. Research Methodology 59-60

II 5. Objectives of the report 59

6. Limitations of the report 60

7. Data Analysis 61-71

8. Learning from Internship 72-75

9. Finding 76
III
10.Conclusion 77

11.Bibliography 78

12.Annexure 79-81

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 CHAPTER-I

INTRODUCTION

Allahabad Bank is a nationalized bank with its headquarters in Kolkata, India. It is the oldest joint
stock bank in India. On 24 April 2014, the bank entered into its 150th year of establishment. It was
founded in Allahabad in 1865.
As of 31 March 2018, Allahabad Bank had over 3245 branches across India. The bank did a total
business of INR 3.8 trillion during the FY 2017-18.

19th Century

On 24 April 1865, a group of Europeans founded Allahabad Bank in Allahabad. By the end of the
19th century it had branches at Jhashi, Kanpur, Lucknow, Barelly, Nainital, Calcutta, and Delhi.

20th Century

In the early 20th century, with the start of Swadeshi movement, Allahabad Bank witnessed a spurt in
deposits. In 1920, P & O Banking Corporation acquired Allahabad Bank with a bid price
of ₹436 (US$6.30) per share. In 1923 the bank moved its head office and the registered office to
Calcutta for reasons of both operational convenience and business opportunities.

Then in 1927 Chartered Bank of India, Australia and China (Chartered Bank) acquired P&O Bank.
However, Chartered Bank continued to operate Allahabad Bank as a separate entity.

Allahabad Bank opened a branch in Rangoon (Yangon). At some point Chartered Bank amalgamated
Allahabad Bank's branch in Rangoon with its own.[10] In 1963 the revolutionary government in Burma
nationalized the Chartered Bank's operations there, which became People's Bank No. 2.

On 19 July 1969, the Indian Government nationalised Allahabad Bank, together with 13 other banks.

7
In October 1989, Allahabad Bank acquired United Industrial Bank, a Calcutta-based bank that had
been established in 1940 and that brought with it 145 branches. Two years later, Allahabad Bank
established AllBank Finance Ltd, a wholly owned Merchant Banking subsidiary.

21st Century

The government's ownership of Allahabad Bank shrank in October 2002 after the bank engaged in
an Initial Public Offering (IPO) of ₹100 million (US$1.4 million) of shares, each with a face
value ₹ 10. The IPO reduced the Government's shareholding to 71.16%. Then in April 2005 the bank
conducted a second public offering of ₹ 100 million of shares, each with a face value ₹ 10 and selling
at a premium of ₹ 72. This offering reduced the Government's ownership to 55.23%.

In June 2006 the bank opened its first office outside India when it opened a representative office
in Shenzen, Mainland China. In February

2007, Allahabad Bank opened its first overseas branch, in Hong Kong. In March, the bank's business
crossed the ₹ 10 million mark.

As on 31 March 2013, the bank had 22,557 employees, out of which 3,293 were women (15%). Out of
the total employees, 51% were officers, 30% were clerks and remaining 19% were subordinate
staff. The bank recruited 1,950 employees (1,421 Officers, 390 Clerks and 139 subordinate staff)
during the same financial year. The company incurred INR 20 billion on employee benefit expenses
during the same financial year.

Employee productivity: During the FY 2013–14, the business per employee was INR 13.50 crores and
it earned a net profit of INR 4.77 lakhs per employee.

8
 WEB BANNER OF ALLAHABAD BANK

LOGO OF ALLAHABAD BANK

The logo of Allahabad Bank signifies its city of origin – Allahabad. The
logo symbolized the confluence of three rivers (Triveni Sangam)
Sangam)- Ganga,
Yamuna, and mythical Saraswathi – at Allahabad.

9
 BANK PROFILE

Board of Director :

Shri CH.S.S. Mallikarjuna Rao MD & CEO

Shri K Ramachandran Executive Director

Sri P.R. Rajagopal Executive Director

Shri Rajeev Ranjan Govt. Nominee Director

Shri Vivek Deep RBI Nominee Director

Prof. Radha R. Sharma Part-Time Non-Official Director

Shri Sarath Sura Shareholder Director

Shri Bijay Kumar Sahoo Shareholder Director

Dr. Parthapratim Pal Shareholder Director

Executive :

Shri Sanjay Aggarwal Chief Finance Officer & GM (Finance & Accounts)

Shri Vikas Kumar Field General Manager-New Dehli

Shri Sudhanshu Gaur Shri Prakash Chandra Sharma

Shri Imran A Siddiqui GM(Credit Monitoring)

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 Shri S.V.L.N.Nageswara Rao GM(Digitization & Marketing)

Shri Neelratan Nirmal Kumar Chief Risk Officer & GM(Integrated Risk
Saha Management)
Shri Mukti Nath Patel GM(Inspection)

Sri Sunil Baran Jena GM (Recovery-II)

Sri Sanjeev Kumar Suri General Manager (HR)

Shri Arun Kumar Pandeya General Manager(IT)

Shri Banambar Sahoo General Manager(Recovery & Law)

Shri Vivek Madhorao Padegaonkar GM(PSC & FI)

Shri Ravinder Singh Field General Manager- Lucknow

Shri Rakesh Kumar Sharma GM (Credit)

Shri Avaya Kumar Mohapatra Field General Manager- Mumbai

Shri Dr. Rahul Srivastava Field General Manager- Allahabad

Shri Hardeep Singh Ahluwalia Field General Manager- Kolkata

Shri Satish Kumar Field General Manager- Hyderabad

Shri Bijay Kumar Sarangi Field General Manager- Ranchi

Ms. Dipti Shrivastava GM (Planning, Development & General

Administration)

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 VISION AND MISSION

Vision :

To put the Bank on a higher growth path by building a Strong Customer-base, through
talent Management, induction of State-of-the-art Technology and through Structural Re-
organization.

Mission :

To ensure anywhere and any time banking for the customer with latest state-of-the-art
technology and by developing effective customer centric relationship and to emerge as a
world-class service provider through efficient utilization of Human Resources and product
innovation.

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 SWOT ANALYSIS OF ALLAHABAD BANK

STRENGTHS:
 Oldest nationalized bank with over 2400 branches
 National & International Presence
 Financial products for all categories of customers from rural to urban
 Innovative schemes like Retail banking boutique & Saral loans etc

WEAKNESS:
 Inadequate advertising as compared to leading banks
 Compliance with government schemes
 Limited number of ATM’s & low customer relationship

OPPORTUNITIES:
 Initiative for self-employment amongst youth
 Internet Banking & other services

THREATS:
 Economic crisis
 Stringent measures by RBI
 Competition from other banks

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 REPORT & BACKGROUND

The name of my report is “Operational and Financial Activities”. This is the short part of
finance as well as banking which involves general banking & various types of loans. The
banking architecture of Allahabad Bank is determined by two major section 1) Operational
Banking and 2) Advances or Loans
Loans. This two major section further sub-sectioned
sectioned into 1.1)
Cash Receipt, 1.2) Cash Deposit
Deposit, 1.3) Bank Balance Book and 2.1) Funded Limit,
2.2)Non-Funded Limit Respectively. The diagram of this Architecture are shown below.

Bank

OperatiOnal aDvanCes Or
Banking lOans

FunDeD
Cash reCeipt limit

Cash DepOsit nOn-FunDeD

limit
Bank
BalanCe
BOOk

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PRODUCTS OF THE ALLAHABAD BANK

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 TYPES OF SAVING ACCOUNTS IN ALLAHABAD BANK

Normal Saving - Saving Bank accounts as the name implies,are intended for savings for
future.The very purpose of this type of account is to promote saving habit of general public.

Eligibility:-

Savings Bank Accounts may be opened in the names of :-

 Individual - Single Accounts

 Two or more individuals - Joint Accounts
 Illiterate persons
 Blind persons
 Minors
 Associations, Clubs, Societies.
 Trusts
 Institutions/Agencies specially permitted by the RBI.

Allbank Shakti :- As a next step towards women empowerment, the Bank has decided to
offer the women of the nation a savings bank product "Allbank Shakti" that makes available
investment opportunities & much more.

Eligibility :-

All Bank Shakti Accounts may be opened in the names of :-

 Individual - Single Accounts

 Two or more individuals - Joint Accounts
 Primary account holder: Any girl/ woman (student/working/homemaker/professional)
 Age: 18 years and above
 All accounts should be Aadhar seeded.

Premium Savings :- This scheme is basically a value-added Saving Bank product. Premium
facilities for elite class.
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 Eligibility:-
 For Rural branches, the account holders are required to maintain a minimum
balance of Rs.5000/--
 For Other branches, the account holders are required to maintain a minimum
balance of Rs.20000/
Rs.20000/-.
 The scheme is not applicable for Institutional Accounts.

Three in One :- The facility offers customers convenience to trade from residence,office or
any place where he can have access through internet using laptop/personal computer-thereby
computer
saving customers valuable time.

Eligibility:-
 The existing customers of Savings Bank & Current account can be given facility of
DP account of Bank and Trading account of ABML.
 The new customers can be offered 33-in-1 account.

Vikash Savings :- Vikash SB Account is formulated ,aiming at mobilizing accounts of

various development programmes under the aegis of local/state/central govt and non-govt
non
organiztions.

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 Eligibility:-
 All organizations under local (Panchyat/ Municipality)/ State/ Central Government
engaged in various developmental programmes like, poverty eradication, Economic
condition alleviation programmes, literacy programmes, sanitation programmes,
health programme, Indiraawas Yojna and non-government organizations (NGOs),
engaged in social causes & services, developmental and extension services would be
eligible for opening such accounts.
 The organization is required to maintain a minimum balance of Rs.50,000/-.

Saral Savings :- To provide access to certain minimum common facilities of normal

banking services to all customers without the requirement of any minimum balance.
Eligibility :-
 Only for individuals as per existing Savings Bank account rules.

Savi Fix :- All the existing Savings Bank Account holders and new Savings Bank Account

Holders,who are maintaining accounts in Individual Capacity.This facility will not be

provided to Firms,Companies,Trusts,Institutions etc. who may be having SB Account as per

respective eligiblity.

“Savi-fix” for SB Individual Customers

Eligibility :-
 All the existing Savings Bank Account holders and new Savings Bank Account
holders, who are maintaining accounts in Individual capacity.This facility will not
be provided to Firms, Companies, Trusts, Institutions etc. who may be having SB
Account as per respective eligibility.

Mahila Sanchay :- The scheme is introduced with the objective of empowerment of

Women in the society.In the process more and more women customers would also come in
the Banks customer profile ,which is lower at a lower level up till now.

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 Eligibility :-
 AllBank Mahila Sanc
Sanchay
hay SB Account is meant exclusively for women.
Features :-
 The account can be opened & maintained at Rs.0/
Rs.0/- balance.
 Demand Drafts/Banker’s Cheques etc. for educational purposes of the wards of the
account holders up to Rs.1,000/
Rs.1,000/- would be provided free of charges.
 The Bank is considering to provide (on request) Piggy Bank free of cost to the
account holders for pooling day
day-to-day
day small savings and depositing in the account
lump sum in adequate intervals. This will be a facilitator for reaching higher level of
balances in the AllBank Mahila Sanchay Account.
 ATM card and Cheque book facility for the account having minimum balane of Rs.
500.

Salary Premium :- The employees of Central Govt./State Govt./ PSUs/Corporations/

Educational institutions/ Corporates/ Public Ltd. Cos. / Pvt. Ltd. Co. may avail the value
added savings account wherein the monthly salary of the employees will be credited.
Eligibility:-
Regular Employees of Central Govt./State Govt./ PSUs / Corporations / Educational
institutions/ Corporates/
s/ Public Ltd. Companies / Pvt. Ltd. Companies.

AllBank Senior :- In a bid to pay its tribute to the senior citizens of the country our Bank
has decided to offer a specially designed scheme ”Allbank Senior” for them.The scheme
comes with multiple benefits for the senior citizens e.g. discount on locker rentals,discount
in health checkups and much more for the senior citizens.

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 Eligibility :-

 Primary account holder:senior citizen aged 60 yrs & above

 Single or joint, first name should be that of senior citizen or staff senior citizen.

 Minimum balance in the account not to fall below Rs.1000/- at any point of time.

 Nomination must in case of single account.

 Bank holds the right to withdraw the facility at its discretion in subsequent years.

CURRENT ACCOUNT :-

These are active accounts opened by such section of the public like Traders, Businessmen,
Corporate Bodies, etc. These are active accounts opened by such section of the public like
Traders, Businessmen, Corporate Bodies, etc. for their business purpose.

The initial deposit in cash required for opening a Current Account is as follows: -

Rural Branches Other Branches

i) Individual Rs.500/- Rs.2500/-

ii) Others Rs. 1000/- Rs. 5000/-

The minimum balance required to be maintained in a Current Account is as follows.

Rural Branches Other Branches

i) Individual Rs.1000/- Rs.3000/-

ii) Others Rs. 2500/- Rs. 5000/-

Eligibility Criteria:-

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Current Accounts may be opened in the names of :-

 Individual Accounts in the name of a single person. ii) Joint Accounts of two or more
individuals.

 Sole-Proprietory Concern.s

 Partnership Firms.

 Joint Hindu Family or Hindu Undivided Family.

 Associations, Clubs, Societies.

 Trusts/Other Trust Accounts like Provident Fund A/cs.

 Private and Public Limited Companies and other undertakings registered under
Companies Act, 1956.

 Executors and Administrators.

 Other Banks.

 State Financial Corporations.

 Government/Quasi Government Departments/Boards/Bodies etc.

Types of Current Account:-

1) Current Plus Deposit:- The “Current Plus” Deposit Scheme allows the customers
to simultaneously enjoy the benefit of both Current Account as well as Fixed Deposit
Account.

The Scheme:

 The Scheme “Current Plus” account (CP) will comprise of two components viz.
Current account and Fixed Deposit account. In current a minimum balance of
Rs.1.00 lac is required to be maintained and amount exceeding Rs.1.00 lac will be
automatically transferred to fixed deposit account for a period of 15 days in multiple
of Rs.10,000.

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 2) Premium Current Accounts:- 25% discount on all Service Charges across the
board for transactions through the account for Any Amount and Any number of
Times.

DEPOSIT ACCOUNTS :-
A deposit account is a saving 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.
1) Fixed Deposit :- This is a term deposits repayable after an agreed period fixed at the time
of deposit. It will include both deposits made for a fixed period and deposits made subject
to notice of withdrawal.
Features :-
The product is available at all branches. Maturity value to be calculated as per rate of
interest applicable on date of deposit. Loan facility is available against pledge of FDR
receipts observing the prescribed procedure for such loans. TDS is applicable on such
deposits as per guidelines issued by Govt. of India from time to time. For more details,
please contact the Allahabad Bank nearest to you.
2) Double Deposit Plan:- Double Deposit Plan (DDP) is an amalgam of Fixed Deposit
Scheme and Recurring Deposit Scheme. The interest payable on Fixed Deposit is
compounded at quarterly intervals. Although the interest payable is compounded quarterly,
it is paid along with the principal only at the end of the stipulated period.

3) Monthly Income Plan:- Money is invested under this plan provide fixed monthly income
by way of interest to the depositor for a specified period leaving the amount intact. The
scheme will specially appeal to retired people who earn no pension.

4) Ishu Mangal Deposit Scheme:-The scheme is meant for the welfare of children.A pre-
determined amount has to be deposited as per the chart provided from time to time which
will grow to Rs.5000/- or its multiple at the expiry of 6 years at the option of the depositor.
However, no deposit will continue after the child attains 21 years of age.
5) Flexi Fix Deposit:-This scheme gives maximum return without sacrificing the liquidity.It
is a running account consisting of multiple units of simple or compound interest fetching
Term Deposit Accounts like normal Fixed Deposit or Double Deposit Plan respectively.

6) Tax Benefit Term Deposit:-Allahabad Bank Tax Benefit Term Deposit Scheme" offering
the benefit under Sec.80C of Income Tax Act for the depositors (Income Tax assesses).Any
amount not exceeding Rupees one lakh in a year commencing on the 1st day of April of

22
 respective years. The amount to be deposited shall be a minimum of Rupees one hundred or
multiples thereof.

7) Recurring Deposit:- Recurring Deposit is a type of deposit wherein the depositor pays an
agreed fixed amount of money into his/her account every month over a stipulated period.

8) AllBank Monthly Plus:- Variable Recurring Deposit is a type of deposit wherein the
depositor has the option of flexibility in payment of installments at hisconvenience
based on his fund availability.

9) MACT & MACAD Account:-Special Deposit Products for disbursement of compensation

amount, as decided by Court/Tribunal to the victims of road accidents, so that the same
may be disbursed by the Claims Tribunals to the claimant(s) in a phased manner.

Joint Accounts:-

Either or Survivor: On maturity paid to:

 Any of the survivors
 If one expires before maturity: pay with the concurrence of the legal heirs of the
deceased joint holder.

Anyone or Survivor/s(More than two): Final balance paid to any of the suvivors on death
of any two account holders.

Former or Survivor(s): Former will operate when both the depositors are alive.
1) Premature with withdrawal: consent of both, when both of them are alive.
2) Premature withdrawal (on death of one): surviving depositor & the legal heirs of
deceased.

Minor’s Accounts (Below Age of 18 Yrs):

 If guardian is appointed by the court, becomes major when he attains 21 years.

 Minors account operated by Guardian can be opened.
 NO CURRENT ACCOUNT is permitted.
 Minor self operated SB A/C for literate minor above 10yrs.
 No cheque book facility

Dormant/ Inoperative Accounts:

1) Accounts which are not operated for a period of two years.

2) Branch manager will permit “credits” into “in-operative accounts” after complying
with KYC requirements.

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 3) For authorizing “debits” in “in-operative
operative accounts”, branches should obtain mandate
from Zonal Office, after confirming to the Zonal Office through the mail that fresh
KYC documents obtained.
4) The unclaimed deposits beyond 10 yrs will be transferred to RBI account Depositor
Education & Awareness Fund (DEAF).

LOAN

Allahabad Bank offers a wide variety of loans that cater to all the different needs
and requirements of the customers be it home, personal or educational. The
different types of offered loans are as follows
follows.

1) Home Plus:-

Purpose: For general purpose

Target Group:
 Existing borrowers, who availed housing loan from bank.
 The borrower switching over to our bank from other bank/FI, subject to
comliance of all the norms applicable for take over housing loan.
 The borrower shoushould
ld have made repayment of 12 monthly installments regularly
in the existing term loan (Housing Loan) as per original sanction terms.

Eligibility:

All individuals, who have availed Housing loan & paid at least 12 monthly installments
regularly (after commencement
mencement of repayment as per original sanction).

2) Housing Loan:-

Purpose:

 For construction of residential house on land already owned.

 For purchase of house/flat to be used for residential purpose.
 For renovation/extension/repair of residential house already owned. For taking over
of housing loans from other finance companies/financial institutions/banks. Finance
for aquiring 2nd residential unit.

24
  Supplementary Finance due to increased income for ca carrying
rrying out alteration
/additions/repairs to the house/flat or for furnishing.

Eligibility:-

 Persons having regular income to liquidate the loans.

Housing loan to HUF will not be considered.
 The employees who have availed of housing loan from their own organization may
also avail of housing loan from the Bank.

3) AllBank Suvidha:-

Purpose:-

 All Existing Individual account holders including our Bank employees

(Existing,VRS/Retired employee), above the age of 18 Years.
 To meet personal need/Business Need and all other kind of expenses.

Eligibility:-

 Only Individual depositors can avail overdraft either at Branches or through

Internet Banking.
 All other including joint depositors can avail overdraft at Branches Only.

4) AllBank Vahan: -

Purpose:-

 Purchase of new Vehicle for personal use/official use

 Purchase of pre-owned
owned vehicle, not more than 3 years old
 The term Vehicles includes:
includes:- Car, Van, JEEP, Multi Utility Vehicles (MUVs).

Eligibility:-

 Salaried Person : Minimum gross monthly income of Rs Rs. 25,000/-

 Agriculturist : Minimum 5 acres of irrigated land holding
 Professional & Self
Self-Employed / Businessmen : An IT assesee. With full collateral
security, IT assessment order / IT return may be waived.
 Retired individuals : Drawing monthly pension of Rs. 15,000/= and above.
 Firm/ Companies: Net profit is sufficient to meet repayment of Car Loan
 Salaried Person : The loan should be repaid at least three months before the date of
retirement from service.
 Other than Salaried peperson : Repaid before attaining the age of 70 years.

25
  Firm/ Companies : Should be existent for at least 2 years.

5) MoBike Loan: -

Purpose :- For purchase of a new engine driven two wheeler.

Eligibility:-

Employee having minimum salary of Rs.15000/pm or ITR of Rs.180000. Loan eligibility

will be six months’ salary or ½ of ITR amount maximum of Rs.1.00 Lac.

Age :- 21 to 60 years. In case of salaried persons, the loan should be repaid 3 months before
the date of retirement.

6) AllBank Vidya:-

Purpose :-

 Educational Loan Scheme aims at providing financial support from the banking
system to meritorious students for pursuing higher education in India and abroad.
 PA meritorious student, though poor, is provided with an opportunity to pursue
education with the financial support from the banking system with affordable terms
and conditions.

Eligibility:-

Should have secured admission to a higher education course in recognized institutions in

India or Abroad through Entrance Test/ Merit Based Selection process after completion of
HSC (10 plus 2 or equivalent).
 Where the admission is purely based on the marks scored in qualifying examinations
then the cut off marks for loan eligibility is 50%.
 Meritorious Students admitted under Management Quota are also eligible for loan.
Studies in India (Indicative list):
 Approved courses recognized by UGC/ Govt. / AICTE/ AIBMS/ ICMR etc.
Studies abroad:
 For job oriented professional/ technical courses offered by reputed universities.
7) Housing & Furnishing Loan:

Purpose :- For furnishing and / or repairing of existing / new flats / houses.

Eligibility:- All the existing borrowers who have availed loan under Allahabad bank
Housing Finance Scheme.

26
  Persons owning flats/ houses free from all encumbrances having regular income to
liquidate the loan amount.
 Loans are subject to take home pay.
8) Housing Appliance Finance Scheme:-

Purpose: - To purchase all consumer household items

Eligibility:- Minimum Age: 18 Years

9) Commercial Vehicle Finance Scheme:

Purpose:-
All individual transport operators/firms/companies/association of persons engaged in
transportation business

Eligibility:
Partnership Firms, Companies & Associations of persons should have in existence for at
least 2 years.

For Individuals: – Min Age -21years Max Age -65 years.

10) Trade Loan:-

Purpose :-

 Working Capital Requirements:- To meet day to day working capital requirement

of the unit/establishment
.
 Term Loan:- Acquiring/construction of premises, go-downs on ownership basis
required for running the business/for repair, furnishing, renovating existing business
premises and/or purchase of furniture & fixtures and for purchase of brand new
equipments, business tools, computers, UPS etc.

Target Group :
 All Traders who are individuals, firms, companies, co-operative societies dealing in
any lawful trading activity i.e. trading in goods & services, which is neither restricted
nor prohibited by RBI/Govt.
 Business concerns/agencies providing services such as Xeroxing, dry cleaning,
licenses to deal in petroleum products/LPG, auto service centers, ISD/STD PCO
Booths etc. are also eligible.

Eligibility: - Traders/ Business concerns having Registration/ License as applicable under

local laws (i.e. Shops & Establishments Act)/ appropriate authorities.

27
  The proponent should preferably be engaged in the line of business for at least one
complete financial year for which Income Tax Returns have been submitted along
with Statement of Financial Result’s or Financials duly certified by a firm of
Chartered Accountants acceptable to the sanctioning authority. The unit should be a
profit making one.

11) AB Fleet Finance Scheme:-

Purpose :- Financing Trucks, Tankers, Trailers, Luxury Busses etc.

Nature Facility :- Term Loan and Working Capital.

Eligibility:- Surface Transport Operators owning 10 vehicles and having 3 years experience
in the line of activity.

 For Individuals – Min Age - 18 Years and Max Age - 60 years.

 Partnership Firms, Companies & Associations of persons should have in existence

for at least 3 years.

12) Mortgage Loan:-

Purpose :- Any Purpose for meeting business/ personal needs but not for speculative
Purpose. However, Loan / limit sanctioned to the companies / firms should be for existing
business purpose only.

Nature of loan :-

 Term Loan
 Overdraft (For Business Purpose only (To firms/ companies and Individuals to meet
their financial needs of their MSME unit).

Eligibility: Age:-

 For individuals – Minimum 21 years, Maximum age of entry 65 year at the time of
sanction of loan.
 Loan must be liquidated before attainment of 70 years of age.
 In case of Firms/ Companies/ Society, it should be in existence for past 3 years and
had net profit continuously in preceding 2 years..

13) Rent Loan:-

28
 Purpose :- Meeting business / personal needs but not for speculative purpose.

Eligibility-:

 Owners of the property who have let out the same to reputed companies/ shops for
commercial purpose/ Industrial/ software companies, MNC’s, Bank, PSUs /
Reputed Govt. / Semi-Govt. Institutions / Organizations, Financial Institutions,
Insurance Companies etc. for their occupation or and also providing services in the
form of office infrastructure with/ without manpower etc (Plug & play model) and
have future cash flows / receivables including lease rentals, service charges, Agency
Commission assuring Minimum Guaranteed Amount etc. as per agreed terms.
 Owner of the property who have rented out their premises to Allahabad Bank are
also eligible.

14) Gyan Deepika Scheme:-

Purpose: -

Parents/ Guardians of students pursuing school education from Nursery standard to 12th
Standard.
 Admission fees including caution money, building fund, refundable other deposits,
maintenance fees etc.
 Annual fees including Development fees, Examination fees, Library/ Laboratory
fees, Hostel charges and other fees related to Hostels, purchase of Books,
Equipment, Uniforms, Computer etc.
 Tuition Fees to be paid in advance on quarterly/half-yearly/yearly basis.
Eligibility: - Should be an Indian national residing in India.
 Student should have secured admission to a Recognized/Affiliated and Reputed
School/High School / Junior School / College (including
 CBSE/ICSE/State Board) for courses under Nursery standard to 12th Standard
identified/ approved by the respective Zonal Office of the Bank

15) AllBank Saral:

Purpose :-

 Loan may be utilized for the purpose of purchasing any consumer durable item / two
wheeler, etc or any other tangible item(s) which can be validly hypothecated to the
Bank and / or for meeting domestic, social, religious and other exigency expenses.
 However, for meeting domestic, social, religious and other exigency expenses,
utilization of loan should not exceed 50% of the loan amount.

Target Group:- Employees of those Organizations only whose salaries are being disbursed
through our Bank Branches.
29
 Eligibility: -

 Minimum Gross Monthly salary of the proponent should be Rs.15000/- and he / she
should be a permanent employee with a minimum 2 years service in the same
Organization.
 The Organization proposed for designation must have strength of minimum 20
eligible employees. Minimum strength of 20 employee is not applicable for central
/state government organization.
 The age of the applicant should be minimum 21 years and loan should be repaid at
least one year before his/her retirement from service.

16) Overdraft Facility in SB Account:

Purpose:

To meet out immediate exigencies.

Eligibility:

All employees of our Corporate Clients, whose salaries are disbursed through Saving Bank
accounts in our Branches.

17) Loan Against NSC/KVP:

Purpose:

Any Business / Personal purpose other than for speculative ones

Eligibility:

Applicant must have National Savings Certificate / Kisan Vikas Patra in own name.

Minimum loan amount is Rs.10, 000/ subject to following margin as per the age of
NSC/KVP with no upper ceiling.

Age of NSC/KVP Loan Amount Margin

More than 3 years 100% of Face NIL
Value

More than 2 years but less than 3 90 % of Face Value 10%

years

Less than 2 years 75% of Face Value 25%

30
 18) Reverse Mortgage Scheme:-
Purpose:- For supplementing existing income, to meet day-to-day requirements. For
meeting other genuine needs.
Eligibility:

 Senior Citizens owning self occupied residential property (House / Flat).

 Age minimum 60 years, spouse must be minimum 55 years;
 Married couples will be eligible as joint borrowers only.
 Others can be allowed loan singly.
 Property must be self-acquired. The house must be in reasonably good condition,
 Residual life of the property should be at least 20 years. The property should not be rented
either in part or full.

19) Skill Loan Scheme:

Pupose: -

Parents/ Guardians of students pursuing school education from Nursery standard to 12th
Standard.

Eligibility:- Any individual who has secured admission in a course run by Industrial
Training Institutes (it is), Polytechnics or in a School recognized by Central or State
Education Boards or in a College affiliated to recognized University, Training Partners
affiliated to National Skill Development Corporation (NSDC) / Sector Skill Councils, State
Skill Mission, State Skill Corporation, preferably leading to a Certificate / Diploma / Degree
issued by such Organization as per National Skill Qualification Framework (NSQF) is
eligible for loan under the Scheme. The Government of India / State Governments may,
from time to time, notify Institutes / Organizations for this purpose, which will be advised
accordingly. Courses run by above mentioned Training Institutes aligned to National Skill
Qualification Framework (NSQF) shall be covered by the “Skill Loan Scheme”.

20) AllBank Doctor Plus:-

Purpose:-

For consumption purpose such as purchase of household articles, medical expenses, other
personal expenses & business purpose such as setting up of clinics, purchase of medical
equipments etc and not for any speculative purpose.

Eligibility:

31
 Individual Registered Doctors and Medical Practitioners in any stream (Medicine,
Homeopathy, Ayurvedic, Veterinary etc.) in India having minimum CIBIL Trans union
Score of 700 (under version 1.0) or 618 (under Version 2.0).

Agriculture Loan

1) Akshay Krishi:-
Purpose :

 A unique Scheme to provide adequate and timely credit support under a single window to
the farmers for their cultivation and other needs.

Eligibility:-

All Farmers – Individuals/ Joint borrowers who are owner cultivators.

 Owner cultivator cultivating leased land along with self cultivated land.
 Tenant Farmers, Oral Lessees & Share Croppers.
 SHGs or Joint Liability Groups of Farmers including tenant farmers, share croppers etc

2) Potato Growers Credit Card:

Purpose:

 A unique Scheme to provide adequate and timely credit support under a single window to
the farmers for their cultivation and other needs.
 Eligibility: All Farmers – Individuals/ Joint borrowers who are owner cultivators.
 Owner cultivator cultivating leased land along with self cultivated land.
 Tenant Farmers, Oral Lessees & Share Croppers.
 SHGs or Joint Liability Groups of Farmers including tenant farmers, share croppers etc

3) Financing for Tractor: -

Purpose :

 FINANCING FOR TRACTOR/ POWER TILLER

Tie-Up Arrangement :

The detail of Tie-up Arrangement is as below:

32
 Name of the Tractor Manufacturing Company Brand name of Tractor
Punjab Tractors Ltd. Swaraj
International Tractors Ltd. Sonalika
Escorts Ltd. Escorts
New Holland Fiat India Pvt. Ltd. Ford
Mahindra & Mahindra Ltd. Mahindra
Tractors & Farm Equipment TAFE & Massey Ferguson
Eicher Tractors Eicher
Indo Farm Equipment Ltd. Indo Farm
Mahindra Gujrat Tractors Ltd. Shaktiman
SAME-DEUTZ-FAHR FAHR India (P) Ltd. SAME
Standard Corporation India Ltd. Standard

Eligibility:

 Farmers residing permanently in the command area of Bank’s branches having good
reputation in the local area and are not defaulters of the loan taken from our bank or other
banks and cultivating land for crop production/ other agricultural purposes are eligible for
availing loan for tractor/ power tiller.

Government Sponsored Schemes

1) Mudra Scheme:

Purpose :

 “AllBank Weavers Mudra Scheme” aims at providing adequate and timely assistance to
weavers to meet their credit requirements i.e. for investment need as well as for working
capital in a flexible and cost effective manner. The Scheme would be implemented both in
rural and urban areas.

Eligibility:

33
 All weavers and ancillary workers involved in weaving activities (including new borrowers
who are otherwise eligible for credit facilities for carrying out the proposed activities under
any of the existing Bank Schemes) would be eligeligible.
 All existing weaver borrowers of the Bank enjoying credit facilities and having satisfactory
dealings with the Bank will also be eligible to avail credit facilities under the Scheme.

2) Stand-Up India:- The objective of the Stand

Stand-Up
Up India scheme is to facilitate bank loans
above Rs. 10 lacs and upto Rs. 1 Crore to at least one Scheduled Caste (SC) or Scheduled
Tribe (ST) borrower and at least one Woman borrower per bank branch for setting up a
greenfield enterprise. This enterprise may be in manufacturing, services or trading sector.
sector

Purpose :

 “AllBank Weavers Mudra Scheme” aims at providing adequate and timely assistance to

weavers to meet their credit requirements i.e. for investment need as well as for working

capital in a flexible and cost effective manner. The Scheme would be implemented
implemente both in

rural and urban areas.

3) Pradhaan Mantri Awas Yojana: -

Pradhan Mantri Awas Yojana was launched in June 2015with an aim to provide affordable
housing to urban poor. The houses given under this scheme will be owned by femalesor
jointly with males.

1) The Micro, Small and Medium Enterprises

Enterprises:-
The Micro, Small and Medium Enterprises in Manufacturing and service sector are defined
as under in MSMED ACT, 2006

Particulars Investment in Plant & Investment in Equipment

Machineries in case of in case of Service Sector
Manufacturing Enterprises Enterprises

34
 Micro Up to Rs. 25/- lacs Up to Rs.10/- lacs
Enterprises

Small Above Rs. 25/- lacs and up to Above Rs.10/- lacs and up
Enterprises Rs.500/- lacs to Rs.200/- lacs

Medium Above Rs.500/- lacs and up to Above Rs.200/- lacs and

Enterprises Rs.1000/- lacs up to Rs.500/- lacs

2) All Bank Weavers Mudra Scheme:-

Purpose :

 “AllBank Weavers Mudra Scheme” aims at providing adequate and timely assistance to
weavers to meet their credit requirements i.e. for investment need as well as for working
capital in a flexible and cost effective manner. The Scheme would be implemented both in
rural and urban areas.

3) All Bank Health Care:

Purpose :

 Setting up of Business – To make medical entrepreneur

 Term Loan : for purchase of tools and equipment for carrying out production process.

Eligibility:

 Passed out Students planning to setup their diagnostic centre in various stream (Medicine,
Dental etc.) in India.
 Students must have completed their course in MBBS/BDS/BAMS/BHMS/BUMS from
recognized/approved college.
 Registration with government authority is must.
 Minimum Age- 21 Years
 Applicant/s must have minimum CIBIL Trans union Score of 700 (under version 1.0) or
618 (under Version 2.0).

35
 Non-Performing Assets(NPA)

A non performing asset (NPA) refers to a classification for loans or advances that are in default
or are in arrears on scheduled payments of principal or interest. In most cases, debt is classified
as nonperforming when load payments have not been made for a period of 90 days. While 90
days of nonpayment is the standard, the amount of elapsed time may be shorter or longer
depending on the terms and conditions of each loan.

TYPES OF ASSETS:-

 Standard Asset:- The assets which generate regular income are called standard assets.
 Sub- standard Asset:- The assets which is overdue for a period of more than 90 days but less
than 12 months.
 Doubtful Asset:- The asset which is overdue for a period of more than 12 months.
 Loss Assets:- The assets which are doubtful and are considered as non-recoverable by banks .
Out of these types Sub-standard, Doubtful and Loss Assets are included under NPAs.

CAUSES OF NPAs:-

 Willful Defaults:- The Indian Public Sector Banks are worst hit by these defaults. It is a default
in repayment obligation.

Kingfisher Airlines Ltd. Is one among many of those willful defaulters. Other are Beta Napthol,
Winsome Diamonds & Jewellary Ltd., Rank Industries Ltd., XL Energy Ltd. etc.

 Industrial Crisis:- Industries depend on banks to fulfill their reports. If industry is in crisis, it is
bound to hit the banking sector and their NPA will rise.
 Credit distribution Mis- management:- Often ill-minded borrowers bribe bank officials to get
loans with an intention of default.
 Lenient Lending Norms:- One of the main reason of rising NPAs is the lenient Lending Norms
especially for corporate honchos where their financial status and credit rating is not analyzed
properly.

IMPACT OF NPA:-

 Bank’s profit will come down which they earn in the form of interest.
 Banks will become reluctant to lend thus affecting their borrowers.

36
 Affecting the liquidity position of banks.
 Service to good customers may get affected.
 Adversely affect the bank balance sheet.

SOLUTION TO NPA:-

 SARFAESI Act:- The act improves the banks/Financial institute (FIs) to recover their NPA
through acquiring and disposing of the secured assets in NPA through acquiring and disposing
of the secured assets in NPA account with outstanding amount of Rs. 1 Lakh and above.
 DRT Act:- The act provides setting up of Debt Recovery Tribunals and Debt Recovery
Appellate Tribunals for expedition and exclusive disposal of suits filed by banks /FIs for
recovery of their dues in NPA account with outstanding amount of Rs. 10 Lakh and above.
 Lok Adalat:- Lok Adalat mechanism offers mutually acceptable way of settlement of disputes.
Govt has advised PSBs to utilize this mechanism to its fullest potential for recovery in NPA
cases.
From time to time many Norm have been framed to get a hold over rising NPA. And these
Norm have been proved to be beneficial. But out of all these, SARFESI Act, 2002 and DRT
Act proved to be most beneficial among all.

CHEQUE
Cheque is a demand bill of exchange drawn on a specified bank. It also includes truncated
cheque & electronic cheque (Sec 6).
Cheque can be made payable to bearer or order (Restriction of Section 31 of RBI Act on
issuing bearer is not applicable on cheque).

BEARER AND ORDER: If a cheque bears, the words bearer/ order both, it is payable to
bearer. If does not bear such words it is payable to order.

TRUNCATED CHEQUE: It is a paper cheque, which is retained by the collecting bank.

To collect the payment, the collecting bank sends scanned image of the paper cheque to the
drawee bank+ digital signatures of collecting bank.

ELECTRONIC CHEQUE: It is a scanned image of the paper cheque+digital signatures of

the drawer.
(Digital signature has two keys, public key (which is disclosed) and private key (which is
kept secret). Public key is used to verify the digital signatures & private key is used to sign.

FORMAT OF CHEQUE: Format is a practice. It is not prescribed in any Act. Wef

01/01/2013, banks & customer can use only such cheques that meet CTS 2010 standard.

37
POST DATED CHEQUE: Cheque bearing date subsequent to date of its presentment. It
cannot be paid before its date. Example- Cheque dated Jan 22, is presented on Jan 16. It will
be returned.

ANTE DATED CHEQUE: A cheque bearing date prior to the date, when it was actually
drawn. Example- Cheque issued on Jan 22 but it is dated Jan05, while the account was
opened on Jan 10. Such cheque can be paid.

INCOMPLETE DATE: If date is not complete (say Jun 2018). It cannot be paid.

IMPOSSIBLE DATE: If an impossible date is written (say Nov 31), the cheque would be
paid on last day of month (Nov 30).

AMOUNT IN WORDS AND FIGURES DIFFERS (Sec 18): Such cheque can be paid for
amount written in words. Amount written in figures shall be ignored.
If amount in words is written & in figures not given, it is incomplete cheque & cannot be
paid.

DIFFERENT HANDWRITINGS/INKS/SCRIPTS:A cheque drawn in different

handwritings or in different inks or different script would be paid.

FORGED CHEQUE: A forged cheque (where signature of the drawer are forged) is not a
mandate of the drawer & in no circumstances it can be paid. If paid bank would be liable.

LEGAL AMOUNT & COURTESY AMOUNT: Amount in words is called legal amount
& Amount in figure is called Courtesy amount as per CTS 2010 guidelines.

COLLECTION OF CHEQUE

Banks collect cheques as agents for their customers.

CONVERSION: In the process of collection, if they collect a cheque for a customer, of
which the customer is not true owner, it is called conversion. Conversion is an offence and
punishable.

PROTRCTION AGAINST CONVERSION: U/s 131 for cheque and u/s 131A for demand
draft, banks gets protection against conversion, when they collect cheques subject to
fulfillment of the conditions that:
(a) Cheques are collected for customers (as agents) in properly introduced accounts.
(b) Cheques are crossed (generally or specially) before presentation to the paying bank
and
(c) Cheques are collected in good faith and without negligence.

PAYMENT OF CHEQUE

38
OBLIGATION OF BANKS: U/s 31 of NI Act, the banks are under statutory obligation to
honour cheques issued by the customer where:
(a) There are sufficient funds (in the same account on which cheque is drawn). If bank
makes payment by creating overdraft without customer consent, it is recoverable
from the customer, if customer has not objected to payment of cheque.
(b) Funds are meant for payment of the cheque and
(c) There is proper demand to make the payment i.e. within business hours.
(d) Signatures are as per record (if cheque is paid for signatures different from record,
but otherwise genuine, customer cannot ask for refund).
On payment in due course, bank will be discharged from obligation.

WHEN PAYMENT NOT TO BE MADE: Payment should not be made in case of:

 Death, insolvency, insanity of customer OR insolvency of partner or firm OR

liquidation of company.
 Stop payment of cheque.
 Receipt of garnishee/attachment order
 Post-dated or mutilated or stale cheque
 Insufficient balance
 Different signatures
 Material alteration
 Payment demanded by payee after business hours (payment to drawer after business
hours can be made)

PAYMENT OF CHEQUES ISSUED BY AGENTS: Payment can be made in case of

death of agent (such as authorized signatory of a Company or Trust or Club or Society etc.,
agent appointed by individual customers etc.) where cheque is not dated prior to date of
authority given to the agent and subsequent to date of death. (Example-Agent got authority
on Jan 20. Cheque signed and dated Jan 18, cannot be paid).

PAYMENT IN DUE COURSE

Banks get protection, if a payment is in due course. As per Sec 10, a payment would be
considered in due course if:
 Payment is as per apparent tenor of instrument
 Payment is in good faith and without negligence
 Payment is to person in possession of instrument
 Payment under circumstances which do not afford a reasonable ground for believing
that he is not entitled to receive payment of the amount mentioned therein
 Payment must be made in money only

PROTECTIONS TO BANKERS:

39
85-1: Paying banker is protected for payment of an endorsed cheque if endorsement is
regular endorsement (whether genuine or forged). Paying bank is protected against forged
endorsement but it should be regular.
85-2: Payment to be made of bearer cheque which is endorsed, by ignoring the endorsement,
as a bearer is always a bearer.
85-A: Protection to paying banker in case of Bank draft, similar to a cheque u/s 85-1 above.
89: Protection to paying bank for materially altered cheques provided the alteration is not
visible even after careful examination of the cheque.
128: Protection for payment in due course of crossed cheques
131: Protection to collecting bank against conversion for crossed cheque subject to
compliance of certain conditions.

DISHONOUR OF CHEQUE:- If a cheque is dishonoured, the drawer is liable for legal

action by holder, u/s 138-147 of NI Act (w.e.f. 01.04.1989) where:
1. Cheque is issued to discharge a liability (for gift cheque not liable).
2. Cheque presented within validity period (max restricted to 3 months)
3. Dishonour is due to insufficiency of funds or even for stop payment or closure of
account.

CTS 2010 STANDARD:

Mandatory features:

Paper UV dull, chemical sensitive to acids,

alkali, bleaches & solvents so that give a
visible result after a fraudulent attack

Watermark One full watermark carry word-CTS-

INDIA, oval in shape, diameter of 2.6 to 3.0
cm

VOID Photograph Pantograph with hidden/ embedded “copy”

or “void” features included in cheque which
will be visible in photocopies scanned
copies

Bank’s Logo Printed in UV ink

40
Mandating Colours & Background Light/pastel colours so that print/ dynamic
contrast ratio(PCR/DCR) is more than 60%

Alterations/corrections on cheques Prohibited

Printing of amount field Pre printed

Effective Wef 27/04/2013

E-PRODUCTS:

AUTOMATED TELLER MACHINE (ATM):

Our ATM provide the following services

 Cash withdrawal
 Fast Cash: Cash withdrawal in Fixed Denominations
 Pin Change
 Balance Enquiry
 Mini Statement: Statements of accounts for the last 8 transactions

 BLOCKING OF ATM CARD: Closure of ATM card instantly are called Blocking
of ATM Card.

VISA INTERNATIONAL/MAESTRO CARD:

 Cash withdrawal limit per day at an ATM: Rs. 25000/-

 POS spending limit per day at Merchant outlets: Rs. 25000/-
 Free Accidental insurance: NIL
 First time issuance charges: NIL
 Annual maintenance charges: Rs. 100+ GST
 Average quarterly balance required for issuance of card: NIL
 Additional features: Accepted internationally
 Transactions cost at ATM’s of other banks:
i. First 5 Txns: NIL
ii. Four Metros, Hyderabad & Bangalore: First 3 Txns: Nil irrespective of Financial/
Non Financial Txns.

41
VISA/ MASTER GOLD CARD:
 Cash withdrawal limit per day at an ATM: Rs. 50000/-
 POS spending limit per day at Merchant Outlets: Rs. 100000/
100000/-
 Free accidental insurance: Rs. 200000/
200000/-
 First time issuance charges: NIL
 Annual maintenance charges: Rs. 200+GST.
 Average quarterly balance required for issuance of card: Rs. 50000/--
 Additional features: Add on Cards for Joint holder(s).
 Transactions cost at ATMs of other banks:
i. First 5 Txns: NIL
ii. Four Metros, Hyderabad & Bangalore: First 3 Txns: NIL irrespective of
Financial/ Non Financial Txns

PLATINUM CARD:
 Cash
ash withdrawal limit per day at an ATM: Rs. 100000/
100000/-
 POS spending limit per day at Merchant Outlets: Rs. 200000/
200000/-
 Free Accidental Insurance: Rs. 500000/
500000/-
 First time issuance charges: Rs. 300/
300/-, to be realized upfront.
 Annual maintenance charges: Rs. 200+ G GST.
 Average quarterly balance required for issuance of card: Rs. 100000/-
100000/
 Additional features: Add on cards for Joint Holder(s).
 Transactions cost at ATM(s) of other banks:
i. First 5 Txns: NIL
ii. Four Metros, Hyderabad & Bangalore: First 3 Txns: NIL irrespective
irrespectiv of
Financial/ Non Financial Txns.

ALLBANK RuPay ATM cum DEBIT CARD DOMESTIC:

 Cash withdrawal upto Rs. 25000/

25000/- per day
 POS spending limit up to Rs. 25000/
25000/- per day at Merchant Outlets
 Transactions free of cost at all Allahabad Bank ATMs
 First five transactions free at other bank’s ATM’s

42
AllBank RuPay DEBIT CARD (PLATINUM)-INTERNATIONAL CARD:
 Cash withdrawal limit of Rs. 100000/-
 PO & E-COMMERCE spending limit of Rs. 200000/-
 Free Accidental Insurance up to Rs. 200000/-
 Annual maintenance charges: Rs. 200 PA.
 Unlimited Transactions free of cost at all Allahabad Bank ATMs
 First five transactions free at other bank’s ATM’s
 The customer should maintain an average quarterly balance in all deposit accounts
taken together of Rs. 5000/-

VISA POWERED DOMESTIC PREPAID GIFT CARD:

 Available in denominations of Rs. 500- Rs. 50000/-
 Can be used for online shopping( cannot to be used at ATM)
 Secure online transaction from ‘verified by VISA’
 Facility to check card balance & transactions details
 Card activation within 24 hours from time of purchase
 Valid for 1 year from the date of purchase

PREPAID GPR CARDS:

 Available in denominations of Rs. 500- Rs. 50000/-
 Can be used for online shopping can be used at ATMs
 Secure online transaction from ‘verified by VISA’
 Facility to check card balance & transactions details
 Card activation within 24 hours from time of purchase
 Valid for 3 year from the date of purchase

RUPAY KCC CARD:

 Allahabad Bank RuPay Kisan Card is a personalized Card
 Withdrawal through all ATM’s
 Cash withdrawal up to Rs. 25000/- per day
 Operations through POS available only with Agricultural Input Dealers
 Maximum of 2 cards will be issued in case of joint account holders where mode of
operation is ‘either’ or ‘survivor’.

GENERAL CREDIT CARD:

OBJECTIVE:

43
  The objective of the scheme is to increase the flow of credit to individuals for
entrepreneurial activity in the no farm sector provided through the general credit card
(GCC).
 It will cover the entire country
 It also gives a preferential treatment to woman beneficiaries.
Quantum of Limit: Maximum 25000/- per borrower

Purpose:
1) Term Loan: For plant & Machineries/Equipments
2) Cash Credit: Up to 20% of projected sales turnover.

INTERNET BANKING:

 Access your bank account anywhere i.e. Home, Office or on the move through PC,
Laptop, I pad with internet connection
 For individual savings & Current account holders
 For corporate cash credit/ overdraft/ current account holders
 For corporate cash credit/ overdraft/ current account holders
 Visit https://allbankonline.in & click on the Internet Banking Login icon
 Online services
i. Account summary
ii. Overdraft details
iii. Transaction details
iv. Online requests cheque/contacts
v. Fund transfer between own accounts
vi. Adding of accounts in Beneficiary list
vii. Viewing of beneficiary account
viii. Standing order
ix. E-Payment facilities
x. Online Enquiry
xi. Other options

OFFLINE SERVICES:

44
 i. Deposit account opening
ii. Deposit amend/renewal
iii. Closure of Deposit Account
iv. Issuance of demand drafts & delivery options
v. Account Statement
vi. INTERNET
vii. BANKING
viii. Cheque book issue
ix. Account transfer
x. Request status enquiry

EmPower:
 Mobile banking allows you all time, anywhere banking available on 24*7*365 basis
 You can access your accounts with single mobile number
 empower app is available on Playstore/Appstore
 Services Available
 Fund Transfer
i. Within Bank
 Add beneficiary
 Transfer fund
 View beneficiary
 Remove beneficiary
ii. Other Bank
 NEFT
 Add beneficiary
 Send money
 View beneficiary
 Remove beneficiary
 Search IFSC/Bank
 IMPS(Immediate Payment System)
 Cheque Service
 PIN Change
 Enquiry
 Power to lock/Unlock the ATM/Debit Card
 Power to Hotlist ATM/Debit Card
 Power to Lock/Unlock Internet Banking Facility
 mPass book can be generated
 Request for Cheque book

USSD: UNSTRUCTURED SUPPLEMENTARY SERVICE DATA:

 Specially for ADHAAR Card Linked Accounts

 Steps for transactions:
Type of your phone *99# and dial
Screen will show “ Welcome to NUUP”

45
 Enter 1st four digit of IFSC Code or Two digit bank code & send
Sub menu will be displayed with following facilities as under:
a) Balance Enquiry
b) Mini Statement
c) Fund Transfer-MMID
d) Know MMID
e) Change MPIN
f) Generate OTP

SMS BANKING:
Any time any where banking services using mobile phones without making a call.
 SMS Banking work on ‘Text Messaging Facility’
 Enquiry/Request can be send to 9223150150
 All deposit & loan account holders can opt for this facility
 The services we offer under this facility are:
 Change M-Pin
 Balance Enquiry
 Mini Statement Request(Last 5 transactions)
 Cheque Book request
 Stop payment request
 Revoke cheque request
 Revoke Stop payment request
 DD issue request

MISSED CALL SERVICE:

 Number for missed service 092-24-150-150
 Give SMS with last 5 transactions
 Order of a/cs SB/CA/OD/CC/Others
 Number of Registration 09223150150
 For registration REG<Account No.>

POINT OF SALE (POS):

 Benefit to Merchants:
a) Fund Settlement on T+1 Basis
b) Free from cash handling
c) Increased footwalls
d) Increased revenue
e) Competitive MDR(merchant discount rate)
f) Foolproof reconciliation
g) Secured transaction:
 Secured Network
 Fraud Free Operations
 PIN@POS enabled terminal

46
NATIONAL ELECTRONIC FUND TRANSFER (NEFT):

 NEFT is a nationwide payment system facilitating one to one funds transfer

 Interbank fund transfer on deferred net settlement which settles transaction batches
from 8:00 am to 7:00 pm except 2nd Sat & 4th Sat day.
 Remittance amount: Rs. 1/- & above with no upper ceiling.

RTGS: REAL TIME GROSS SETTLEMENT:

 RTGS is a system where there is continuous & real time settlement of fund transfers,
individually on transaction by transaction basis.
 Interbank fund transfer on a “real time” basis from 8:00 am to 4:30 pm daily.
 For large value transaction, Min Rs. 2 lac & above with no upper ceiling.

IMMIDIATE PAYMENT SERVICE (IMPS):

 Instant interbank fund transfers
 24*7*365 availability
 No more sharing of bank account details
 Credit & Debit confirmations to sender & receiver
 Simple, easy to use, time & cost saving, safe & secure
 Easily adaptable for merchant payments
 Transaction limits
1) IMPS P2A->Using Account No. & IFS Code
2) IMPS P2P->Using Mobile No. & MMID(Mobile Money Identifier)
3) IMPS P2U-> Using Aadhaar Based Remittance Services(ABRS)

MODE OF IMPS Limit per Transaction Limit per day

Mobile Banking(P2A & Rs. 25000/- Rs. 1.00 lakh
P2P)
Internet Banking(P2A) Rs. 1.00 lakh Rs. 2.00 lakh
Internet Rs. 50000/- Rs. 1.00 lakh
Banking(P2P&P2U)
Branch Banking(for Rs. 2.00 lakh Rs. 2.00 lakh
P2A, P2P&P2U)

 TRANSACTION THROUGH IMPS:

A remitter can initiate an IMPS transaction using:
 Beneficiary mobile no., Beneficiary MMID & amount

47
  MMID(Mobile Money Identifier) is a 7 digit number, to be issued by the bank
to the customer upon registration
 Support multiple accounts per mobile number
 Eliminate human errors while entering beneficiary mobile No.
 Enable routing of Transaction to Beneficiary Banks.

BHIM APP:
Bharat Interface for Money (BHIM) is an initiative to enable fast, secure, reliable cashless
payments through your mobile phone. BHIM is inter operate with other Unified Payments
Interface (UPI) applications & bank accounts for quick money transfers online. BHIM is
developed by the National Payment Corporation of India (NPCI) as a part of the Digital
India initiative.
Transaction limit is Rs. 20,000 per transaction & Rs. 40,000 per day (for 1 bank account).

ALLAHABAD BANK BHIM UPI APPLICATION:

 UPI (Unified Payments Interface) application is a payment system that allows you to
transfer money between any two parties.
 UPI Application allows customer to instantly transfer money to someone else using
the IMPS payment framework, without having to know their bank account no. or
IFSC code.
 Transaction limit is Rs. 25,000/-per transaction & Rs. 1 Lac per day.

ADVANTAGES:

1) Real time settlement of funds

2) No need to remember or share account details
3) Collect Money
4) Send money using Virtual id, Account no. or AADHAAR no.
5) Add multiple bank accounts in same application

NACH (NATIONAL AUTOMATED CLEARING HOUSE):

TARGET/ELIGIBILITY:

 Individuals customers & others

 NACH aims- Next Generation Accessible Convenient Hassle Free

FEATURES:

 Handle large volume of repetitive payments

 Increase & improve in efficiency of current ECS clearing
 Offer comprehensive & customized management information
 System & dispute management system

48
E-LOBBY:

New initiative taken on the concept of “Do it yourself banking”

E-LOBBY comprises of:

-cash deposit Kiosk
-Passbook printing Kiosk
-Cheque deposit Kiosk
-Internet banking Kiosk

ALL BANK SELFIE:

 Based on a simple app available at Google Store named as-“Allbank Selfie Style”.
 Customer has to provide basic information & KYC details only.
 Any smart phone with Android Operating System version 4 or above is required.

TAB BANKING:

 Accounts are opened using a tablet or any Android Phone (Ver 6.0 or above).
 Bank’s designated employee will visit customer’s place to obtain required
information through the TAB
 Instant Account Opening
 Home branch would be as per choice of the Customer.

KYC (KNOW YOUR CUSTOMER)

Know your customer, alternatively known as know your client or simply KYC, is the
process of a business verifying the identity of its clients and assessing their suitability, along
with the potential risks of illegal intentions towards the business relationship. The term is
also used to refer to the bank regulations and anti-money laundering regulations which
govern these activities. Know your customer processes are also employed by companies of
all sizes for the purpose of ensuring their proposed customers, agents, consultants, or
distributors are anti-bribery compliant. Banks, insurers, export creditors and other financial
institutions are increasingly demanding that customers provide detailed due
diligence information.

Personal Identity Address Tax Contact Related Supplementary

Details Details Details Purpose Details Personal Details
Details Details

49
STANDARDS:
The objective of KYC guidelines is to prevent banks from being used, intentionally or
unintentionally, by criminal elements for money laundering activities. Related procedures
also enable banks to better understand their customers and their financial dealings. This
helps them manage their risks in a well judged manner. Today not only the banks but also
different online businesses can implement KYC. They usually frame their KYC policies
incorporating the following four key elements:

 Customer Acceptance Policy;

 Customer Identification Procedures;
 Monitoring of Transactions; and
 Risk management.
The stringent regulatory environment establishes KYC as a mandatory and crucial procedure
for financial institutions. As it minimises the risk of fraud, by identifying suspicious
elements earlier on in the client-business relationship lifecycle. For the purposes of a KYC
policy, a customer/user may be defined as:

 a person or entity that maintains an account and/or has a business relationship with the
bank;
 one on whose behalf the account is maintained (i.e. the beneficial owner);
 beneficiaries of transactions conducted by professional intermediaries such
as stockbrokers, Chartered Accountants, or solicitors, as permitted under the law; or
 any person or entity connected with a financial transaction which can pose significant
reputational or other risks to the bank, for example, a wire transfer or issue of a high-
value demand draft as a single transaction

TYPICAL CONTROLS:
KYC controls typically include the following:

 Collection and analysis of basic personally identifiable information (PII).

 (referred to in US regulations and practice as a "Customer Identification Program" or
CIP).
 Screening of identity particulars (PII) against global watch-lists to determine the status
of public exposure (politically exposed person or PEP) and adverse media.
 Determination of the customer's risk in terms of the tendency to commit money
laundering, terrorist finance, or identity theft.
 Creation and assessment of a 'Customer Profile' on the basis of a customer's
transactional behaviour
 Monitoring of a customer's transactions against expected behaviour and recorded profile
as well as that of the customer's peers.

50
 What is e-KYC

E-KYC refers to electronic KYC. E-KYC is possible only for those who have Aadhaar
numbers. While using e-KYC service, you have to authorise the Unique Identification
Authority of India (UIDAI), by explicit consent, to release your identity/address through
biometric authentication to the bank branches/business correspondent (BC). The UIDAI then
transfers your data comprising name, age, gender, and photograph of the individual,
electronically to the bank/BC. Information thus provided through e-KYC process is
permitted to be treated as an ‘Officially Valid Document’ under PML Rules and is a valid
process for KYC verification.

SAFE DEPOSIT LOCKER

Bank Lockers are safe for a person to store valuables for a period of time. Bank Lockers are
small boxes kept in a room that is guarded heavy and has solid iron doors or concrete walls
around it. To open the locker a pair of keys are needed, one key is with the bank & the other
is with the customer. Both keys have to be used together to open the locker. Both private &
public sector banks provide the facility of lockers today. The Bank follow the guidelines of
Reserve Bank of India (RBI). The Locker facility is also called as Safe Custody.
Objective:

 To enable customers for safekeeping of their valuables & confidential documents.

 To expand clientele base of the Bank by offering the service.
 To generate NFNI income out of locker rent.

Eligibility:

Locker can be hired by the following:

 An Individual
 Two or More person jointly
 Partnership Firms
 Limited Companies
 Societies
 Associations
 Clubs etc.
.

Types of Lockers & Rentals:

51
  The banks have various sizes of lockers; Small, Medium, Large, Very Large,
Exceptionally Large.
 The rental charges per annum are subject to changes from time to time as per
the circularized instruction.
 Discounts for customers paying locker rent in advance is as under;

Locker Rent Paid in Advance Discount in Annual Rate

If Locker Rent of 3 years paid in 10%
advance
If Locker Rent of 5 years paid in 15%
advance

 In case of default in locker rent payment, penal charges are applicable, as per the
circularized instruction.

Procedures for Opening Safe Deposit Lockers Account:

 Application & Agreement Forms

 All types of applicant(s) should submit the standard application form SDL 6N.
 After due verification of the application, a stamped agreement (unattested) form as
applicable, duly signed by the hirer(s)/authorized person(s) should be obtained.

FORM NO. Applicable To

SDL1 Individual Hirer
SDL2 Joint hiring by two or more individuals
SDL3 Firms
SDL4 Limited Companies
SDL4a Societies, Institutions, Associations, Clubs
Note:

 THE SIGNATURE OF THE HIRERS MUST ALSO BE OBTAINED ON THE

REVERSE SIDE OF THE STAMPED AGREEMENT( WHEREIN ALL THE
TERMS & CONDITIONS)

 Access to operate the locker in case of joint hiring

In the case of joint hiring by two or more individuals, special precaution must be taken
record instruction regarding operation of locker in a clear & unambiguous manner as;
 Either or survivor
 Former or survivor
 Anyone or anyone of the survivors or the last survivor
 Joint by any…..of them or any….of the survivors of them or by the survivor
or by the last survivor only.

52
  In Joint hiring, any variation of the terms of contract can only be made with the
consent all the joint hirer(s).

Follow up for realization of arrear rent of safe deposit locker:

Steps to be adopted for recovering the arrear rent:

 One month before expiry of the year, a letter should be issued to the locker holder by
registered post with A/D or courier, advising him/her to pay the rent for the relevant
year(s).
 One month after the expiry of the period, another notice/letter should be sent,
advising the locker holder that if the locker rent is not paid within 15 days from the
date of notice, the locker would be broken & costs of such breaking open of the
locker & required amount of notice charges would have to be borne by the locker
holder in addition to arrears of rent.
 Is there is no response from the locker holder even after expiry of 15 days from the
date of such notice, the branch should report the entire matter to its Zonal Office &
simultaneously one more Notice/Letter should be sent to the locker holder, stating
that no response has been received from him/her till date although more than 15 days
have elapsed from the date of Notice & hence the locker should be broken on…..&
the bank shall not hold any responsibility for any consequences & costs incurred by
the Bank for breaking open of the locker & the notice charges, in addition to double
the outstanding locker rent, should have to be borne by you.

Steps for breaking open of lockers:

 On the day of breaking open of the locker, couple of customers, a Notary Public, the
Manager & the officer/ staff of the branch should be witness to the breaking open of
the locker & the inventory to be prepared.
 For breaking open of the locker, the concerned authorized dealer of locker supplier
should be contracted.
 After breaking open of the locker, if any item is found in the loose form, it should be
recorded in inventory with full description. Is any sealed packet is found, it should
not be opened & should be mentioned in the inventory as ‘sealed packet’ & a
duplicate list of these inventories should be prepared & signed by all the persons
mentioned above.
 Thereafter, all the contents should be packed & sealed along with a copy of the list of
contents & kept in safe custody & in future if any claims, by the locker holder or
his/her legal successor, received by the branch should be referred to Zonal Office for
their approval.
 In case the locker, on breaking open, is found empty, the fact will be properly
recorded in presence of all the witness mentioned above.
 A notice will be sent to the locker holder, advising that the locker was broken open
on ……as advised earlier & the articles taken out of the broken locker can be
collected from the Branch only against the payment of double the arrears of rent &
charges/expenses.

53
  In case the locker was found without any contents therein, this fact will be
specifically advised to the locker holder simultaneously.
 No contents should be parted with at any stage without obtaining/observing the
following:
1) Affidavit of the locker holder/legal heirs/nominee to be sworn before the first
class Magistrate/Notary Public with regard to their identity & their bonafide
claim.
2) In case of death of Locker holder, letter of Administration/Probate of
competent Court Law authorising the claimant to collect the contents of the
locker & other document prescribed for deceased claims.
3) Indemnity Bond by the locker holder or his/her legal heirs or Nominee/Surity,
as the case may be, in favour of the bank.

Guidelines relating to Locker Keys:

 Each locker has a distinct key with key numbers engraved on it.
 Master key(s) of the Locker cabinet(s) should be handed over to the dealing office
against written acknowledgement & duplicate master key should be deposited
another nearby branch of our bank/other public sector banks.
 The keys of vacant lockers must be kept in sealed envelopes, under dual control.
 For any new locker allotment, the key must be delivered in sealed condition.
 Lock of the vacated locker should be interchanged with another vacant locker.
 In no circumstances, the surrendered locker be let out without changing the lock.

Loss of key by the hirer:

 The loss of locker key by a hirer should be intimated in writing & immediately to be
noted in bold letter in the application form & SDL register.
 Key may be reported lost by only one of the joint hirers. In that case, he/she should
report the loss of key by letter in which he/she should state that his/her report of loss
key is be treated as “Cancelled” if another joint hirer calls with the key.

National Electronic Funds Transfer (NEFT)

National Electronic Funds Transfer (NEFT) is an electronic funds transfer system

maintained by the Reserve Bank of India (RBI). Started in November 2005, the setup was
established and maintained by Institute for Development and Research in Banking
Technology (IDRBT). NEFT enables bank customers in India to transfer funds between any
two NEFT-enabled bank accounts on a one-to-one basis. It is done via electronic messages.
Unlike real-time gross settlement (RTGS), fund transfers through the NEFT system do not
occur in real-time basis. NEFT settles fund transfers in half-hourly batches with 23

54
settlements occurring between 8:00 am and 7:00 pm on week days and the first, third and
fifth Saturday of the calendar month. Transfers initiated outside this time period are settled
at the next available window. No settlements are made on the second and fourth Saturday of
the month, or on Sundays, or on public holidays.

Process:

Detailed process of NEFT is as follows:

1. The customer fills an application form providing details of the beneficiary (like
name, bank, branch name, IFSC, account type and account number) and the amount
to be remitted. The remitter authorizes his/her bank branch to debit his account and
remit the specified amount to the beneficiary. This facility is also available through
online banking, and some banks also offer the NEFT facility through ATMs.
2. The originating bank branch prepares a message and sends the message to its pooling
centre (also called the NEFT Service Centre).
3. The pooling centre forwards the message to the NEFT Clearing Centre (operated by
National Clearing Cell, Reserve Bank of India, Mumbai) to be included for the next
available batch.
4. The Clearing Centre sorts the funds transfer transactions destination bank-wise and
prepares accounting entries to receive funds from the originating banks (debit) and
give the funds to the destination banks (credit). Thereafter, bank-wise remittance
messages are forwarded to the destination banks through their pooling centre (NEFT
Service Centre).
5. The destination banks receive the inward remittance messages from the Clearing
Centre and pass on the credit to the beneficiary customers’ accounts.

NEFT Transfers Limits:

With NEFT transfers, the biggest advantage is that there is no cap on the minimum and the
maximum amount that you transfer. The minimum amount transferred can be as low as Rs.1
while for other fund transfer option like RTGS, there is a minimum limit of Rs.2 Lakh.

There is no maximum amount assigned by the Reserve Bank of India (RBI) for NEFT
Transactions. However, a limit may be specified by the bank that you hold your account
with.

For cash transactions, you can transfer a maximum of Rs.50000 in each transaction.
However, there is no limit on the total amount you transfer

Settlement timings:

55
  NEFT originally settled fund transfers in hourly batches with twelve settlements
between 8 am and 7 pm on weekdays. Settlements are closed on the second and
fourth Saturday of the month. In April 2016, the RBI announced that clearance times
would be reduced to half-hourly batches raising the number of settlements per day to
23.
 Any transaction initiated after a designated settlement time would have to wait till
the next designated settlement time. As of 2013, all transactions initiated before 5 pm
are settled on same day. No transactions are settled on weekly holidays and public
holidays.
 NEFT operate Monday to Saturday (except the second and fourth Saturdays of each
month) between 8:00 am and 7:00 pm.
 Neither RTGS nor NEFT operate on Sundays. The second and fourth Saturdays of
each month are declared as bank holidays for the entire calendar year.

Real-Time Gross Settlement (RTGS)

The acronym 'RTGS' stands for real time gross settlement. The Reserve Bank of India
(India's Central Bank) maintains this payment network. Real Time Gross Settlement is a
funds transfer mechanism where transfer of money takes place from one bank to another on
a 'real time' and on 'gross' basis. This is the fastest possible money transfer system through
the banking channel. Settlement in 'real time' means payment transaction is not subjected to
any waiting period. The transactions are settled as soon as they are processed. 'Gross
settlement' means the transaction is settled on one to one basis without bunching with any
other transaction. Considering that money transfer takes place in the books of the Reserve
Bank of India, the payment is taken as final and irrevocable.

Fees for RTGS vary from bank to bank. RBI has prescribed upper limit for the fees which
can be charged by all banks both for NEFT and RTGS. Both the remitting and receiving
must have core banking in place to enter into RTGS transactions. Core Banking enabled
banks and branches are assigned an Indian Financial System Code (IFSC) for RTGS and
NEFT purposes. This is an eleven digit alphanumeric code and unique to each branch of
bank. The first four letters indicate the identity of the bank and remaining seven numerals
indicate a single branch. This code is provided on the cheque books, which are required for
transactions along with recipient's account number.

RTGS is a large value (minimum value of transaction should be ₹2,00,000) funds transfer
system whereby financial intermediaries can settle interbank transfers for their own account
as well as for their customers. The system effects final settlement of interbank funds
transfers on a continuous, transaction-by-transaction basis throughout the processing day.
Customers can access the RTGS facility between 9 am to 4:30 pm (Interbank up to 6:30 pm)
on weekdays and 9 am to 2:00 pm (Interbank up to 3:00 pm) on Saturdays. However, the

56
timings that the banks follow may vary depending on the bank branch. Time Varying
Charges has been introduced w.e.f. 1 October 2011 by RBI. The basic purpose of RTGS is
to facilitate the transactions which need immediate access for the completion of the
transaction.

Banks could use balances maintained under the cash reserve ratio (CRR) and the intra-day
liquidity (IDL) to be supplied by the central bank, for meeting any eventuality arising out of
the real time gross settlement (RTGS). The RBI fixed the IDL limit for banks to three times
their net owned fund (NOF).

The IDL will be charged at ₹25 per transaction entered into by the bank on the RTGS
platform. The marketable securities and treasury bills will have to be placed as collateral
with a margin of five per cent. However, the apex bank will also impose severe penalties if
the IDL is not paid back at the end of the day.

Since 1 June 2019, the RTGS service window for customers' transactions is available from
8:00 AM to 6:00 PM on weekdays,[3] and from 8:00 AM to 1:00 PM on Saturdays. No
transactions are possible on Sundays and public holidays.

The RBI announced on 11 June 2019 that all charges for payments via RTGS and National
Electronic Funds Transfer (NEFT) collected from banks would be waived from 1 July 2019,
and asked banks to pass on the benefits to customers.[4]

RTGS Timings

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to reliable sources. Unsourced material may be challenged and removed. (September 2018)
(Learn how and when to remove this template message)
RTGS Timings

Time Event Regular Days including Saturday (Except 2nd and

4th Saturday)
Open for Business 8:00 AM
InitialCut-off(Customer 6:00 PM
Transaction)
FinalCut-off(InterBank 7:45 PM
Transaction)
End of the Day 8:00 PM

57
 Immediate Payment Service(IMPS)

Immediate Payment Service (IMPS) is an instant payment inter-bank electronic funds

transfer system in India. IMPS offers an inter-bank electronic fund transfer service through
mobile phones. Unlike NEFT and RTGS, the service is available 24/7 throughout the year
including bank holidays.

It is managed by the National Payments Corporation of India (NPCI) and is built upon the
existing National Financial Switch network. In 2010, the NPCI initially carried out a pilot
for the mobile payment system with 4 member banks (State Bank of India, Bank of India,
Union Bank of India and ICICI Bank), and expanded it to include Yes Bank, Axis Bank and
HDFC Bank later that year. IMPS was publicly launched on November 22, 2010. Currently,
there are 53 commercial banks, 101 Rural/District/Urban and cooperative banks, and 24 PPIi
signed up for the IMPS service.

Immediate Payment Service (IMPS) is an initiative of National Payments Corporation of

India (NPCI). It is a service through which money can be transferred immediately from one
account to the other account, within the same bank or accounts across other banks. Upon
registration, both the individuals are issued an MMID (Mobile Money Identifier) Code from
their respective banks. This is a 7 digit numeric code. To initiate the transaction, the sender
in his mobile banking application need to enter the registered mobile number of the receiver,
MMID of the receiver and amount to be transferred. Upon successful transaction, the money
gets credited in the account of the receiver instantly. This facility is available 24X7 and can
be used through mobile banking application. Some banks have also started providing this
service through internet banking profile of their customers. Though most banks offer this
facility free of cost to encourage paperless payment system, ICICI bank and Axis bank
charge for it as per their respective NEFT charges.

58
 CHAPTER-II
RESEARCH METHODOLOGY

Research design:
Descriptive research procedure is used for used for describing the recent situation in
Allahabad Bank and analytical research to analyses the result by using research took.

OBJECTIVE OF THE REPORT

1. To study requires various type of present policies, procedures and methods of
General Banking Operation.
2. To develop skills needed in communicating with customers regarding their bank
account.
3. To understand the procedures used by the bank to evaluate its loan applicants.
4. To gain the knowledge about the various investment products offered by the bank.
5. To develop the skills required with senior management and staff (for example: AGM,
senior manager, and office staff) in a professional manner.
6. To develop time management skills and the ability to be responsible for more than
one report at a time.

Sampling Design:

 For my survey I have used Convenience sampling technique.

 Convenience sampling is a non-probability sampling technique where subjects are
selected because of their convenient accessibility and proximity to the researcher.

Sample Size – Sample of 35 People was taken in order to conduct the research.

Universe- In accordance to the specified research universe is Lucknow city.

Sampling Method-The sampling technique adopted for the study is Stratified Random
sampling. A method of sampling that involves the division of a population into smaller
groups known as strata. In stratified random sampling, the strata are formed based on
members' shared attributes or characteristics.

Sources of Data Collection :

Primary Data sources :

 The study is largely based in the primary data which has been collected through the
structured Questionnaire Method by the help of Google form.

59
 Questionnaire:-

A Questionnaire is a list of questions sent to a number of persons for them to answer.

It maybe in Physical or Digital form.

For the present study purpose questionnaire method is used to collect the primary
data .This questionnaire is divide into two sections – Section A and Section B.

 Section A Consist the questions regarding Personal Information i.e., Name,

Gender, Occupation, Email-Id.
 Section B Consist the Questions which fulfill the research objectives and it
contains 15 Questions

Secondary Data sources :

 Daily diary (containing my activities of practical orientation in Allahabad Bank)

 Various publications on banking operation,
 Website of Allahabad Bank,
 Annual Report of the Allahabad Bank,
 Personal investigation with bankers,
 Different circulars issued by Head Office and RBI.

Data Collection Tools:

 For my survey I have used Pie chart.

LIMITATION OF THE REPORT

 The one of the main limitations of the report was to conduct a small scale survey on
clients.
 Time period was the other limitation for collecting information, which was only two
month long.
 Insufficient supply of relevant book and journals.
 The branch is too much busy branch as for this to operate the survey on the basis of
questionnaire.
 Deficiencies in data required for the study.
 Field practice varies with the standard practice that standard practice that also
created problem.
 Time provided for conducting the study is another important constraint.

60
 CHAPTER-III
DATA ANALYSIS AND INTERPRETATION

Data collected through Questionnaire:

Questionnaire:-

Interpretation:
Out of 35 respondents that I have taken for my survey only 31.4% respondents have their
account in Allahabad Bank and 68.6% have their account in other banks (i.e., SBI, Union
bank, Bank of Baroda, etc,.) it means that the bank needs to improve their customer facility
in comparison to other banks.

Interpretation:
Out of 24 respondents 32.4% % are interested to open account in Allahabad Bank, 38.7% not
surely but interested to open their account in the bank.

61
Interpretation:
Out of 11 respondents 96.2% have saving account, 3.6% have current account in the bank. It
means that the bank has a very good amount of saving account customer as compare to the
current account.

Interpretation:
Out of 35 respondents 62.95 of them remark good to the product of Allahabad Bank, 14.3%
remark it excellent, and 17.1% remark Neutral. It means that the bank have a good
reputation in the market.

62
Interpretation:
Out of 34 respondents 58.8% of them rated good to the Allahabad Ba
Bank
nk in comparison to
other banks,, 14.7% rate it excellent and 20.6% rate it Neutral.

Interpretation:

Out of 11 respondents 71.4% of them use Allahabad Bank Online banking services, 25.7%
do not use it and 2.9% have in doubt.

63
Interpretation:
Out of 8 respondents 77.4% of them getting the bene
benefits
fits of online banking services,16.1%
do not get benefit and 6.5% are nnot sure. It means bank has given a very good online
banking facility to their customer
customer.

Interpretation:
Out of 34 respondents 29.4% have a investment plan and 58.8% have no investment plan
because according to my dada collection most of the respondents are student so that is the
reason why only 29.4% respondents have investment plan.

64
Interpretation:
Out of 31 respondents 41.9% of them prefer to invest in fixed deposit, 35.5% prefer mutual
fund, 6.5% prefer insurance sector for investment and 16.1% pref prefer other
ther investment plan
because most of the respondents said that fixed deposit is beneficial for them.

Interpretation:
Out of 11 respondents only 18.2% have loan account in Allahabad Bank, mostly have
education loan and 81.8% have no loan account in this bank. It means bank needs to
compress the interest charges on loans.

65
 Interpretation:
Out of 11 respondents 36.8% of them have education loan in Allahabad bank, 10.5% have
housing loan, 5.3% have Business loan and rest of them have other loan (i.e., gold loan).

Interpretation:

Out of 29 respondents 34.5% of them prefer the period of 6 months to 1 year for investment,
31% prefer the period of less than 6 months.

66
Interpretation:
When the customers are asked about they recommend this bank to their friends,
nds, relative and
their associates then 60.6% respondents have agreed on it, 18.2% not agree and 21.2% have
not sure. According to the pie chart reveals customers recommendation for bank.

Interpretation:
Out of 31 respondents 58.1 % of them get the message alert service after every transaction,
transaction
12.9% didn’t get this service and 3.2% didn’t bother. It means that the bank has provided
proper message alert services to the customers.

67
Interpretation:
Out of 17 respondents 62.5% of them not facing any difficulties while approving loan, 16.7%
has facing difficulties and rest of them has facing sometime. It means that the bank has to
improve the process of loan and try to make it easier.

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Allahabad Bank Share Holding:-

CATEGORIES NO. OF SHARES %

PROMOTERS 3,424,406,768 92.01

NO. OF SHARES 3,721,717,991 100.00

FINANCIAL INSTITUTION 108,837,586 2.92

GENERAL PUBLIC 74,563,635 2.00

OTHERS 51,135,533 1.37

FOREIGN INSTUTIONS 33,441,160 0.90

NBFC AND MUTUAL FUNDS 29,333,309 0.79

Shareholding Pattern:-

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NPA MOVEMENT IN ALLAHABAD BANK

70
 FRESH SLIPPAGES

Sector Wise fresh slippages ::-

(Rs. In crores)

Fresh Slippage % - 2018-19

1% AGRICULTURE
5% MSME
10% 32% LARGE INDUSTRY
24% SERVICES
28% RETAIL
ALL OTHERS
TOTAL

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 LEARNING FROM INTERNSHIP

Account Opening & Operation Of Deposit Account:-

1) To open any deposit account, follow KYC guidelines issued by RBI or procedures as
per the Customer Acceptance Policy.
2) The account opening forms would be provided to the prospective depositor by the
terms Bank.
3) Display minimum balances, penal charges for failure to maintain balances & other &
conditions prominently.

Periodically update customer identification data: Full KYC exercise to be done at least once;
 Every two years for high risk customers
 Every eight years for medium risk is customers
 And every ten years for low risk customers

Operation Of Deposit Accounts:

 Bank will register mandate/POA on CUSTOMER’S request

 The TDR holders can give instructions for closure or renewal of deposit. If not auto
renewal is done for a similar period(maximum one year)
 A statement of account will be provided SB & Current account holders periodically
bank provides password encrypted monthly statement of account in PDF format who
have registered their e-mail id.
 All beneficial owners shall be subjected to KYC.
1) For Company, the beneficial owner is the natural person(s), having controlling
ownership interest” means>25% of shares or capital or profits of the Company.
2) For a partnership firm, the beneficial owner has >15% of capital or profits. For a
trust, author of a trust, the trustee, the beneficiaries with>15% interest.
o Obtain PAN or alternatively declaration in Form No. 60 or 61.
o Minors above the age of 10 can open & operate SB account subject to
prevailing guidelines of the bank.

Operation of Saving Account in Allahabad Bank:

450- Balance Enquiry/ Transaction Enquiry

-Enter
A/c no.- F7-Balance Show-Enter

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 Operation of Current Account in Allahabad Bank:

450- Balance Enquiry/ Transaction Enquiry

-Enter
60450-Account Balance Enquiry
440-OD & CC Overdue Amount

 CHEQUE BOOK AND PASSBOOK FUNCTION:

Passbook is issued by the bank to the account holder that records the deposits &
withdrawals. Cash book is prepared by the firms whereas Passbook is written by
banks & retained by the customer. Conversely, in passbook debit balance shows
overdraft while the credit balance shows cash at the bank.

CHEQUE BOOK FUNCTION:

 Cheque Book Operation

 Centralized Cheque Book
Order
 Enter Pages(20,50,100 etc)
 At par
 Submit

CHEQUE BOOK PERSONALISATION CREATION

 Cheque Personalisation
 F10- Signature & Photo Checking
 Cheque Book Entry

THE PROCEDURE OF DISBURSEMENT OF LOAN AT ALLAHABAD

BANK IS AS FOLLOWS:

 Filled in Application form: The bank receives the filled in loan application form
along with all other necessary documents from the customer. The loan application
form contains certain fields for entering personal & property details, loan amount
required tenure for which the loan is required & most importantly the purpose of the
loan.
 Security of Documents & the Application Form: Once the bank has received the
application form with documents, it does a proper & through security of all the

73
 papers & asks for a cheque regarding a processing fee from the customer. The bank
has also provisions for refunding of the processing fees if the loan is rejected. The
process of scrutiny of loan documents is done within time frame of 5-7 days
depending upon the loan amount seeded.
 On the basis of the loan amount the application once scrutinized & found appropriate
is forwarded to the Credit Managers for further approvals & completion of
formalities who is turn assesses the various risk factors involved on the loan.
 Field Investigation: The bank usually carries on a field verification of the
prospective buyers through undisclosed agents who provides a confidential report to
the credit manager regarding various parameters on which of the visit is done.
 Approval/Rejection: The bank after completing all its formalities & checks on the
customer, it either approves or rejects the loan application. In case of rejection the
applicant is informed with proper reasons for rejecting & the processing fee is
refunded as per bank policies.
 Sanctioning: Once the bank approves a loan of the customer, the amount of loan is
sanctioned in the name of the applicant which may vary from 75-90% of the loan
amount applied for the depending upon bank policies. The bank issues a sanction to
the letter to the customer & the customer is asked to provide further documentation
for disbursement of the loan within the time frame provided & signing of the loan
agreement takes place at this stage.
 Disbursement: The bank will finally disburse the amount of the loan to the customer
through cheque/draft in the name of the applicant. The applicant is also informed
from time to time regarding any cheques in the interest rates, EMI’s etc with regards
to the loan he/she has taken.
 Post Disbursement Review: The responsibility of the bank does not end with the
disbursement of the loan. Allahabad Bank has the policy of reviewing the utilization
of the loan amount by the customer quarterly through which it determines whether
the said amount has been utilized for the purpose mentioned in the loan application.

Operation of Loan Account in Allahabad Bank:

450- Balance Enquiry/ Transaction Enquiry

-Enter
10450-Loan Balance Enquiry
60450-Account Balance Enquiry
400-Overdue Amount

PROCESS OF RECOVERY OF OVERDUE LOANS:

The bank disburses loans to its customers always with good faith & with the expectation that
the customer shall remain loyal to the bank & will not default over the same. However many
a times it is found that the customers do not keep the faith intact & the loans turns into an
Non Performing Asset (NPA). As such bank has certain policies regarding the recovery of
unpaid loans & NPA’s. The includes the following:

74
  At the first stage a demand notice is served to the customer for repayment of the
outstanding interest installments.
 Secondly if the customer does not reply, the bank will serve a legal notice to the
customer.
 Thirdly a total loan amount recall notice is sent to the customer.
 After that the loan is declared as an NPA & appropriate steps are undertaken for
auctioning of the property kept as security under the SARFAESI Act (Securitization
& Reconstruction of Financial Assets & Enforcement of Security Interest Act).
 As a last step of the bank also files a case with the Lok Adalat against with willful
defaulter.

Before NPA Pre- Recovery Process:-

 Bank make calls to the defaulters and also visiting their homes
 Bank make a list of the defaulters and trying to convence them,

Additional learning from bank:-

 Learn to work in the various Departments of the Bank i.e., Operation department,
Locket department and Advances department
 Learn the process of documenting work performed on loan application and
communicating effectively with supervisors and office staff.
 Learn the regulations related to lending policies of the bank.
 Learn to work with bank customers and explain the account options available at the
bank.

75
 FINDINGS

From results of survey, we can see that during last few years, numbers of clients of
Allahabad Bank has grown rapidly, which indicates that the bank has been successful to
attract clients. But there are certain factors that the bank management should look at,
Customers are not happy with the interest rate of the loan as most of the competitors of
Allahabad Bank are offering lower interest rate, which attracts more clients to those banks.
Respondents consider the interest rate on savings account of Allahabad Bank is pretty
reasonable, where as they consider the interest rate on FDR is not very attractive.
Respondents strongly recommend that the bank should immediately install more ATM
Booth all over the district and improve the power card service to retain old customer as well
as attract potential customer and attracts client. Most of the respondents are attracted to the
deposit schemes of the Allahabad Bank as they think these schemes will be able to help
them to fulfill their financial needs. Customers also expressed their concern about the
lengthy process for applying and getting loan. Most of the respondents appreciate the
security facilities of Allahabad Bank. Staffs are adequate enough to provide efficient
services. Scarcity of staffs is a very important problem last but not least majority of the
respondents think opening account in Allahabad Bank is helpful for their business purpose
as well as individual purposes.

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 CONCLUSION

It is a public sector bank, so it has to abide by the plans that the GOI makes and help the
Government to achieving its targets.

The bank has successfully made a positive contribution to the economy of the India with in
very short period of time. Its profit is gradually increasing. It plays a great role in collecting
scattered Deposit, loan settlement and International trade etc. the Bank ensures quality
services to the customers. For better growth and healthy economic position, it should
introduce new and lucrative long-term credit schemes especially for new investors and
schemes for poverty alleviation like micro credit.

I hope Allahabad Bank do more work for socio-economic development besides their
banking business. To keep pace with ever-changing uncertain domestic business
environment and face the challenges of revised global economic scenario, the bank should
be more pro-active and responsive new marketing strategy to hold the strong position in
home and abroad.

For the future planning and the successful operation in its prime goal in this current
competitive environment . I hope this report can provide a good guideline. I wish continuous
success and healthy business portfolio of Allahabad Bank, Lucknow Hazratganj Main
Branch.

77
 BIBLIOGRAPHY

 Self work experience during Summer Internship Training.

 Guidence of Trainers.

 Books Provided by Trainers.

 Internet and Various Websites:

 https://www.slideshare.net
 https://m.economictimes.com
 https://en.m.wikipedia.org/wiki/Banking_in_india
 https://en.m.wikipedia.org>wiki
 https://m.economictimes.com>stocks
 https://www.allahabadbank.in>Vision&Mission
 https://scribd.in

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 ANNEXURE
“QUESTIONNAIRE”

A PUBLIC SURVEY ON ALLAHABAD BANK

FOR INTERNSHIP REPORT

Name:

Email-Id:

Gender:

Occupation:

1. Do you have any account in Allahabad bank?

Yes No

2. If No, then do you want to open an account in Allahabad bank ?

Yes No

Maybe

3. If Yes, which type of account you have in Allahabad Bank ?

Saving Account Fixed Account

Current Account Loan Account

4. Your remark on product of Allahabad bank?

Excellent Good

Neutral Poor

5. In comparison to other bank how would you rate Allahabad Bank?

Excellent Good

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 Neutral Poor

6. Are you using online banking?

Yes No

Maybe

7. If Yes, then are you getting benefits of online banking?

Yes No

Maybe

8. Do you have any investment plan?

Yes No

Maybe

9. What you prefer for investment?

Mutual fund Share

Fixed deposit Insurance

Other

10. Do you have any loan account in Allahabad Bank?

Yes No

Maybe

11. If Yes, which kind of loan account you have in Allahabad Bank ?

Housing loan Education loan

Gold loan Business loan

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 Other

12. What time of period do you like to invest?

Less than 6 months 6 months to 1 year

1 year to 3 year 3 year to 5 year

13. Would you recommend this bank to your friends, relative, and associates?

Yes No

Maybe

14. Do you get proper message alert, when ever you do a transaction?

Yes No

Maybe I didn’t bother

15. Have you ever facing difficulty while approving loan?

Yes No

Some time

81