Internship Report 1

INTERNSHIP REPORT
AT

SONERI BANK
Submitted By:

OVAIS MOIN

INDEX

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HISTORY
3
ACKNOWLEDGMENT
4
INTRODUCTION OF DEPARTMENTS
5
ACCOUNTS DEPARTMENTS
6
CLEARING DEPARTMENT
12
REMITTANCE & BILLS DEPARTMENT
14
CASH DEPARTMENT
16
OTHER SERVICES
19
IMPLICATION OF INTERNSHIP ON MY CARIER
23

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History
Soneri Bank Limited was formally incorporated on September 28, 1991. The first
Branch commenced operations in Lahore on April 16, 1992, followed by the launch
of Karachi's first Branch on May 09, 1992. The bank currently operates 154
branches, spread all over Pakistan including the Northern Areas of the country. The
banks expansion policy is based on the principle of maintaining a balance
between the urban and rural areas.
We take great pride in offering services even in the remote areas of Pakistan. Our
fully air-conditioned and computerized branches provide a pleasant,
convenient and hassle free banking experience every time.
The essence of our business philosophy is to cater to the banking requirements of
small & medium sized entrepreneurs, effectively providing them qualitative &
competitive services with emphasis on encouraging exports. Nearly forty percent
of our credit portfolio is related to export financing and credit decisions are taken
within 48 hours. Thats why we say!

We have more time for you !

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Acknowledgement
All prays goes to Allah almighty. To write an acknowledgement after

completion of an enormous task as always been more enormous than

the task itself. But with the firm determination and noble passion of
hard working, nothing remains difficult.
I want to thank all those personalities, who have been a source of
guidance during the Internship. I acknowledge them with thanks for
their help. My deep gratitude also goes to Soneri Bank Limited
management.
Mr. Naseer Ahmed
(Manager)
Mr. Noor Muhammad (Manager Operation)
Saim Ahmed
(OG-III)
Muhammad Naveed
(Junior Officer)
Syed Naushad Haider (Head Cashier)
Muhammad Azhar
(Junior Officer)

Needless to say that all shortcoming of this report will remain my

responsibility.

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Introduction Of Departments
In Which I Worked
As An Internee
At
Soneri Bank Limited

ACCOUNTS
CLEARING
REMITTANCE &BILLS
CASH
OTHER SERVICES

Now Each Of The Above Department Will Be Discussed Briefly:

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Accounts Department

Type A Accounts:
Type B Accounts:

Types of Account
1)
2)
3)
4)
5)

1)

Basic Banking Account

Current Account
Fixed Accounts
Saving Accounts
Other Accounts

Basic Banking Account:

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Soneri Bank Limited introduces Basic Banking Account Scheme with effect
from July 01, 2006. This is account is for salaried person account. Normally different companies,
Schools, Colleges opened their employees account in this account Salient feature of the Scheme
are:
Basic Banking Accounts may be opened in the Pak Rupees by individuals
including
minors under guardianship.

The accounts may be opened by initial deposit of any amount.

No minimum balance requirement is applicable.

Basic Banking Account is non-profit bearing account.

4 withdrawals from a Basic Banking Account through cheques in one

calendar month
are free of service charges. Additional withdrawals through cheques in a
calendar of
month shall be subject to service charge @ Rs. 25/- per additional cheque.

Account have -NIL- balances for six consecutive months shall be closed
without prior
intimation.

Statement of Accounts is provided once a calendar year at the year ends.

Govt. Withholding Tax applies on all cash withdrawals.

Usage of Electronic Banking through ATM or

Debit Card.

Online Cash Deposit, Withdrawal and Funds Transfer through cheques

from any of our branch across Pakistan .
Free 24/7 Internet Banking to view Statement of Account.

Note : Not subject to Zakat .

2)

Current Account:

Current is a non profit account, flexible account with a great

convenience for individuals (in single or joint names), minors (to be operated by
the guardian), charitable institutions, autonomous corporations, limited companies,
firms, associations, educational institutions, etc. This is a type of account that is for
business purpose for frequent transactions .
Current Account entitles account holder to avail amazing facilities such
as:

No profit is allowed on this type which is why they are also called Cost free
deposits.
It is opened with a min. initial deposit of Rs. 10000 at Soneri Bank.
In case the deposit is lower than 10000, Rs. 50 is automatically deducted
from the account monthly.
This is a very profitable account for banks.
Chequing Account facility with no limit on a number of transactions.
Free Cash Deposit and Withdrawal facilities through your bank branch.
Free Clearing facility to deposit cheques of other banks within the city.
Import, Export and other business transactions.
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Statement of Account on six monthly basis.

Facility of Running Finance can be requested for specific purpose against
collaterals and nominal markup rates being charged on quarterly basis.
Govt. Withholding Tax applies on all cash withdrawals.
Usage of Electronic Banking through ATM or
Debit Card.
Online Cash Deposit, Withdrawal and Funds Transfer through cheques
from any of our branch across Pakistan.
Free 24/7 Internet Banking to view Statement of Account.

Note : Not subject to Zakat.

3) Saving Account:
This is a type of account in which saving is deposited for the sake of profit.
Soneri savings account provides an opportunity to small and medium income
group people, with an attractive return.
At Soneri Bank following are applicable:
I)

PLS Saving Account

It is opened with a min. initial deposit of Rs. 5000.

5% profit p.a. is payable semi-annually that is fixed .
Frequent transactions are restricted.
Rs. 50 charged monthly in case deposit lowers than Rs. 5000 any
moment.
Regular Chequing Account.
Chequing Account facility with no limit on a number of transactions
Statement of Account on six monthly basis
Free 24/7 Internet Banking to view Statement of Account
Provisional rates are announced on a six monthly basis however profit/loss
earned/incurred on PLS Savings Bank Accounts are determined by the
Bank at its sole discretion on the basis of its net working result at the end
of each half-year/ year
Calculation of products on PLS Saving Bank Accounts is computed for
each calendar month on the lowest credit balance in an account.
Profit on Soneri Savings Accounts is credited on a monthly basis on the
provisional
rate of Profit
Standing Orders facilities.

NOTE : Zakat is deductible from Account however Zakat exemption forms are
accepted.

Deposit Category

Rate of Return

PLS Saving Account

5.00% p.a

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II)

PLS Soneri Saving Account:

PLS Soneri Savings Account is a flexible and fast growing cumulative

profit account with a great convenience for individuals (in single or joint names),
minors (to be operated by the guardian), charitable institutions, provident fund and
other funds of benevolent nature local bodies, autonomous corporations, limited
companies, firms associations, educational institutions etc. The rate of Profit in this
savings scheme increases as your balance increases without demanding and
negotiating with us.

PLS Soneri Savings Bank Account entitles Account Holder to avail

amazing facilities such as:

Minimum balance requirement 5,000/-.

Operational facility like Current Accounts without any restriction on
amount and number of Cheques..
Profit paid on monthly basis on daily products.
Chequing Account facility with no limit on a number of transactions
Provisional rates are announced on a six monthly basis however profit/loss
earned/incurred on Soneri Savings Accounts are determined by the Bank
at its sole discretion on the basis of its net working result at the end of
each half-year/ year.
Calculation of products on Soneri Savings Accounts is computed on daily
product basis.
Profit on Soneri Savings Accounts is credited on a monthly basis on the
provisional rate of Profit.

NOTE : Zakat is deductible from Account however Zakat exemption forms are
accepted.

Balance

Rate of Return p.a

Up to Rs. 100,000

5.00 %

Over Rs. 100,000 but upto Rs.1.0 Million

7.00 %

Over Rs. 1.0 Million but upto Rs. 5.0 Million

8.00 %

Over Rs. 5.0 Million but upto Rs. 10.0 Million

9.00 %

Over Rs. 10.0 Million

10.00%

4) Fixed Account:

It is a type of account in which an amount is deposited for a fixed period

of time that earns profit as stipulated by the banks conditions.
Once the money is deposited certificates are issued
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Each certificate bears a min. initial deposit of Rs. 10000 and Rs. 25000 in
case of Premium deposit certificates.

At Soneri Bank, there are following types of deposits:

Notice Deposits:
In this type amount is deposited for a week or month as per terms agreed
upon.
Deposit Category

Rate of Return

7 Days

6.00% p.a

30 Days

8.00% p.a

Term Deposits:
In this type, annual profit rate is allowed at the end of the month, quarter,
year, two years or three years as per terms agreed by the customer, the longer
the period the higher the profit rate. Term deposit is offered by Soneri Bank to
Individuals (in single or joint names), Minors (to be operated by the guardian),
Charitable Institutions, Provident Fund and other funds of benevolent nature local
bodies, Autonomous Corporations, Limited Companies, Firms, Associations,
Educational Institutions etc who have the intention of retaining their savings for a
fixed period thereby earning a higher rate of profit. The Term Deposit allows you to
save a fixed amount in Pak Rupee for a set period ranging from 1 month to 60
months at a provisional and attractive profit rate. The depositor has the option to
reinvest the deposit automatically with or without profit.

Provisional rates are announced on a six monthly basis however profit/loss

earned/incurred on Term Deposits are determined by the Bank at its sole
discretion on the basis of its net working result at the end of each half-year/
year.
Calculation of products on Term Deposit is computed on a daily product
basis.

NOTE : Zakat is deductible from Account however Zakat exemption forms are
accepted.
Term

Rate of Return p.a

1 month

8.00 %

3 month

8.50 %

6 month

9.00 %

1 year

10.50 %

2 years

11.50 %

3 years

12.50 %

Soneri Diamond Deposit Certificates:

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Soneri Diamond Deposit Certificates provide investment opportunities to
small and medium income group investors, Charitable / Benevolent Funds, Trusts,
Societies, Associations and Clubs with an attractive return.

Annualized rate of expected return 10%, 11% and 12% on 1year, 2years and
3years deposits respectively are applicable
Profit is payable at monthly intervals
In case of premature encashment, profit is payable as per rules stipulated by
the bank
Finance Facility up to 90% of deposit amount available
The certificates are issued in multiples of Rs. 10,000/-

NOTE : Zakat is deductible from Account however Zakat exemption forms are
accepted.

Term - Diamond Deposit Certificates

%age

1 Year

10.00% p.a.

2 Years

11.00% p.a.

3 Years

12.00% p.a.

Soneri Premium Deposit Certificates:

Annualized rate of expected return 12% p.a. is allowed after 12 months on

maturity
Requires a min. investment of Rs.25000
In case of premature encashment, profit is payable as per rules stipulated by
the bank
It can be accepted as security against finance.
Provisional Profit Rates are announced on a six monthly basis however
profit/loss earned/ incurred on Soneri Premium Deposit are determined by
the Bank at its sole discretion on the basis of its net working result at the end
of each half year/year.
Calculation of profit on Soneri Premium Deposit is computed on a daily
product basis.
Zakat on deposit is recoverable however Zakat exemption Forms are
accepted.
Govt. Withholding Tax applies on all cash withdrawals over Rs.25, 000- and
profit credited into account.

5) Others
Sahara Account:

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It has recently been introduced. Being a saving account it is meant for Senior
Citizens 60
years and above living on pensions and savings individuals (in single or joint
names).
Minors may also open under the guardianship of Senior Citizens .
No restrictions on min. or max. balance
Expected profit rate @ 11.25% p.a. to be calculated on the min. balance
during a month
Certain service charges are waived like annual Soneri VISA Classic Debit Card
fee, On-Line Banking Service, SMS Alert Service and Internet Banking Service
NOTE : Zakat is deductible from Account however Zakat exemption forms are
accepted.

Soneri Sahulat Account:

This is a new Current Account Scheme for those customers who maintain
a min. of Rs. 50000.
Certain service charges are waived like annual Soneri VISA Classic Debit
CARD fee, charges on issuance of Pay Order to the debit of the account,
On-line Banking Service, SMS Alert Service, Fund Transfers within Soneri
Bank Branches through internet banking service and payment of Utility
Bills through our Internet Banking Service.

Clearing Department
Receipts & payments through cheques on behalf of customers.
This is second
most important part of general banking. Clearing denotes all activities
from the time a
commitment is made for a transaction until it is settled. Clearing is
necessary because
the speed of trades is much faster than the cycle time for completing the
underlying
transaction.
Types of Clearing
i)

Inward Clearing

ii)

Outward Clearing

i)

Inward Clearing:
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we pay through cheques on behalf of the customer. In case of
insufficient balance, the cheque is returned and Rs. 200 each is charged (Incase
funds insufficient) .
Inward clearing can be further divided into three categories:
Normal Clearing (Intracity Clearing) : This is clearing within city.
Same day clearing: This is clearing within city on the same day but the
cheque must bear amount Rs. 500,000 or more.
Inter-city clearing: This is clearing outside city and the amount of charges
are Rs.75 and 16% of FED charged to the 0.2% of Commission charged on the
total Amount.

ii)

Outward Clearing:

we receive through cheques on behalf of the customer. In Outward

Clearing cheque comes from different bank to Soneri bank but from the same
city .

NOTE: (Clearing is preceded by NIFT (National Institutional Facilitation

Technology). NIFT acts as middleman between and among banks. Its collects
cheques from different banks, sorts them out and sends them to the bank and
branch mentioned in the cheques )

REALIZATION AND UN-REALIZATION

There are three steps in realization of cheque in clearing.
Shadow
Realized
Unrealized
SHADOW
It just a record till the cheque is not clear.
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REALIZED
Bank realized entry when it received a notice of clearing from other bank.
UNREALIZED
In case if cheque is not clear, then we unrealized the cheque and removed
from the shadow

Remittances & Bills Department

Remittance
Remittance is one of the most frequently used banking services is the transfer of
funds through the banking channels, being local or outstation. Transfer of funds
entails high level of efficiency and security on part of the bank. The remittances
are of two types i.e.
1) Local Remittances
2) Foreign Remittances

1) Local Remittances:
SBL offers following modes for Local Remittances:
Pay Order
Demand Draft
Bankers cheque

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Pay Order:
Payment Order is a negotiable instrument to transfer money to other
banks within the station and is payable on demand. It is non-transferable
instrument valid for three months, making it an order by one party to make
payment in favor of another party. It is also known as Bankers Cheque.
The customer fills an application form for Pay Order in favor of a party and submits
the amount in the cash department. It is competitively less risky. In case of
cheques, the bearer might not get the desired amount for non-having sufficient
funds available to him but the Pay Order is a secure way of having the desired
amount.

Demand Draft:
Demand Draft is basically a bill of exchange, which orders to pay
money on demand to a certain person specified on the instrument, or to the order,
drawn by one bank to the branch of the same bank outside the station or on its
corresponding banks. Legally, the Negotiable Instrument Act governs the
instrument. The following parties are involved:
o

Purchaser: The customer, one whose request the DD is issued

Drawing / Applicant Bank: The bank, which issues the DD

Drawer Bank: The bank on which the issued DD is drawn

Payee: The person entitled to receive the payment

The DD is valid for three (3) months i.e. 90 days of it being drawn.

Bankers cheque :
This instrument is used for payments against banks purchases and
expenses.

2) Foreign Remittance:
SBL offers following mode for Foreign Remittance:

Foreign Demand Draft :

This instrument is used to transfer funds outside the country. Foreign

Demand Draft is basically a bill of exchange, which orders to pay money on
demand to a certain person specified on the instrument, or to the order, drawn
by one bank to foreign correspondent bank is to be sent.

Bills
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Bills may be categorized into following:

BY ORIGIN:
Inland Bills
Foreign Bills
i)
ii)

Inland Bill ( Direct Bill) : A negotiable instrument that is drawn and

made payable within the same country.
Foreign Bill: A negotiable instrument that is drawn in a country and is
made payable outside that country

BY FUNCTION:
Actual or trade bill
Accommodations bill
i)
ii)

Actual or Trade Bill: These bills are drawn in course of genuine or trade
transaction. These bills are written for value received or for some
consideration.
Accommodations Bill: These bills are drawn for providing financial
assistance to someone. These bills arent written for any actual trade
dealing.

Cash Department
The following books are maintained in the cash department :
Receiving cashier books
Token Book
Paying cashier Book
Scroll Books
Cash Balance Book.
When cash is received in counter, it is entered in the Scroll book and cash
receiving cashier book. At the close of the day these are balanced with each
other. When cheque or any negotiable instrument is presented at counter for
payment, its entered in the token book and token is issued to the customer.
The token and cashier make entry in the payment book and after that payment is
made to the payee. At the closing of the day, the token book and paying cashier
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book is balanced.
The consolidated figure of receipt and payments of cash is entered in the balance
book and drawn closing balance of cash.
Opening Balance + Receipt Payments = Closing Balance

This is very important department because cash is the most liquid asset and
mostly frauds are made in this department, therefore , extra care sis taken in this
department and no body is allowed to entered or leave the area freely. Mostly,
cash area is grilled and its door is under the supervision of the head of that
department. Officer checks the books maintained in this department .
SUNDRY DEBTOR
Sundry debtor is also known as suspense account. Bank maintains this account to
meet the cash in emergency. Like if employee needs salary in advance due to
some problem. Bank will advance him cash. But bank will deduct this amount at
the time of paying salary to him.
Some important point for SD:
At the month debit side must be equal to credit side.
At the start of next month debit side and credit would be equal to zero.

TYPES OF CURRENCY NOTES

i)
ii)
iii)
iv)
v)

Fresh
Sorted
Unsorted
Soiled
Defective

i)

Fresh: Fresh notes are those which are directly issued by the State Bank
of Pakistan.

ii)

Sorted: Sorted notes are those which are not soiled and defective and
are easily issued to general public or customers.
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iii)
iv)
v)

Unsorted: Unsorted notes are those which include soiled, defective or

mutilated.
Soiled: Soiled notes are oily, dirty or untidy.
Defective: Those notes which are marked mutilated or ragged.

Cash withdrawal:
According to State Bank 0.3% withholding tax is charged on withdrawal of
more than
Rs. 25,000.

Online Cash Deposit/Withdrawal:

Inter-city cash deposit/withdrawal charges up to Rs. 500,000 are Rs.116
Intra-city cash deposit/withdrawal charges up to Rs. 500,000 are Rs. 58

Online requirements:
Copy of NIC (with original for verification)

Other Services
Online Banking
Telephone Banking
ATM
SONERI

Debit Card

SMS Alert

Online Banking :
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Telephone Banking :

ATM
Soneri Banking Card offers convenient and 24-Hours-a-day, 365 days a
year access to ATMs across the country. When traveling within Pakistan, use the
Card at Soneri Banks own network of ATMs and hundred of ATMs displaying either
the 1-link or M-Net symbols.
ELIGBILITY:
You can also apply for a Debit Card services. If you are having Soneri Banking Card,
if you are maintaining a Soneri Bank PKR Current or Savings account Single or Joint
account with either signatory authorized to operate the account, a further
supplementary card can also be issued to the second account holder. All Soneri
Banking Card holders use debit card facility.
ATM ACCESS ACROSS ALL OVER PAKISTAN:
Now cash withdrawals and Balance Inquiry services are available by any of the
ATM in Pakistan.
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AVAILABLE SERVICES:
AT ALL ATMs
Cash Withdrawal:
You can withdraw cash from your account(s) up to Rs.25,000 per day in multiples
of Rs.500,
and Rs.1,000 currency notes.
Balance Enquiry:
You can see the available balance in your account displayed on the screen or
obtain a printed
advice
AT SONERI BANK ATMS:
Fast Cash:
You can withdraw up to Rs.1000, 3000, 5000, 7000 and 10000 cash from your
account(s).
Mini-Statement:
The ATM shall provide you with an instant mini-statement of your ATM linked
accounts
(declared by you on the application) listing 10 last transactions in the account.
Request for Cheque Book:
Request for fresh cheque book may be made through the ATM. The Cheque book
may be
collected from your branch after 3 working days against surrender of duly signed
cheque
book Requisition slip.
Request for Statement of Account:
Request for a detailed statement is processed at the push of a button.
Requested statement shall be dispatched by your branch at your Registered
Address within 4 working days.

Pin Change:
You may change the Personal Identification Number (PIN) through the own ATMs
any
number of times.
Smart Option:
Fund transfer
Utility bill payments
Fund Transfer facility:

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You have the power to transfer money from your account to any account of Soneri
Bank anywhere in Pakistan.

SONERI

Debit Card :

SONERI
Debit Card brings to you the ultimate facility of
spending and making payments. You are privileged to avail the unmatched
opportunities and benefits of the
CLASSIC Card and
GOLD Card. With
the Buy Now Pay Now facility, you pay directly from your bank account. Use
your SONERI
Debit Card wherever you are and whenever you want.

Safer than Carrying Cash.

Pay dining, shopping, traveling, hotel and other bills at over 24 million
outlets
displaying
sign locally and internationally.
Worldwide cash withdrawal facility at over 1 million ATMs displays the sign.
Ease of Cash withdrawal on 1 LINK and ATM networks across Pakistan.
Credit facility available for GOLD Card Holders.
Accessibility of multiple accounts from a single card.
Makes money management easier.
24/7 Automated Telephone Banking.
24/7 Call Centre facility.
Cheque-free banking.
Funds Transfer facility between participating 1LINK member banks.
Attractive rewards on spending.

Soneri

Gold & Classic

Debit Card
SCHEDULE OF CHARGES
VISA GOLD Debit Card

Description

Joining Fee
Annual Charges
Supplementary Card
Charges
Card Replacement

Charges

NIL
Rs. 500 Per Card
Rs. 500 Per Card
Rs. 200 Per Card

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Charges
PIN Re-issuance Charges NIL
VISA CLASSIC Debit Card
Description

Charges

Joining Fee
NIL
Annual Charges
Rs. 150 Per Card
Supplementary Card
Rs. 150 Per Card
Charges
Card Replacement
Rs. 200 Per Card
Charges
PIN Re-issuance Charges NIL
ATM Cash Withdrawal
Description

Charges

Local (at Soneri ATM)

NIL
Charges
Local (at 1-LINK/M.Net
Rs. 15 Per Card
ATMs) Charges
International
Rs. 300 Per Transaction or
Transactions (ATMs
3% of transaction amount
Displaying PLUS Logo)
whichever is higher
Purchase: (Point of Sale Terminal)
Description

Local
International

Charges

NIL
Rs. 300 Per Transaction
or 2% of transaction amount
whichever is higher
ATM Funds Transfer

Description

Charges

Within any Soneri Bank

NIL
Branch
With any participating 1Rs. 50 Per Transaction
Link Member Bank
Other Charges
Description

*Arbitration fee on
disputed transaction
*Document Retrieval
Charges Local
*Document Retrieval
Charges International

Charges

Rupee equivalent of US $
500
Rs. 250 per retrieval
Rupee equivalent of US $ 15
per retrieval

SMS Alert :
Soneri Bank Limited now introduces to its ATM/ VISA Debit Card holders
SMS Alert Service, the best feature for warning about fraudulent transactions
conducted against Cards. Now you shall receive SMS Alerts on your mobile number
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registered with the bank of all purchase transactions immediately after it has been
made. Remember, an early intimation can save you a lot of trouble later, and also
protect your hard-earned money.
It is very easy to sign up for our SMS Alert Service. Just fill the form
available in our all Branches or call us for your SMS Alert Activation:

IMPLICATION OF INTERNSHIP ON MY CARIER

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June 12, 2010