I fitqdflH O, tlnion a#h

opERATroNs oeprnrfl exrr qk{rtr{ Blfirl

Ctntrat Ofncr Anner .nl.tutu. }Lmrladet i Trrnpk Ro.d, Pandclt .!r l.r4.turu, f\.mrtrta _ 575m1
lnstruction Circular No.oq61tr: 2024 Date:18.03.2024

To All Branches/Offic6

Poucr ox Bnrxcn Openr.loxs 2021'25

f
1.0 The poticy on Branch Operations covers broadLy the fottowing:

Conduct of Branch Operations A Branch Management

Conduct of Good customer Service
Update on Customer Rights, Compensation, Service Charges, Banking Products and
Agreements
understanding Payment and Settlement System
Adherence to lnternat Policies and Processes, lnformation circutars and Guidetines
Meeting Statutory Compliances and Accounting Standards
Timety Redressat of Customer Grievance
Currency Chest Management and Cash Management Services etc.

The Poticy shatt be vatid up to 31.03.2025.

3.0 Att the lnstruction Cjrcutars/lnformation Circutars issued by respective Department are
subject to revision from time to time.
l
jn concise manner
1. Purpose: This Poticy provides information on day to day operations
with updated guideLines/circutars/information on operationaI processes/products for
better understanding to fieLd functionaries. Keeping att the detaits in singte document
facitjtates in depth Knowledge and information to fieLd functionaries on Operational
functions for effective Operational Risk Alanagement.

2. Board Approval and Validity: The Poticy on Branch Operations ptaced and approved as
Agenda ltem no. P-15 in the Board meeting heLd on 12.02.2024 is vatid up to 11.01.2025
The approved poticy is enctosed with the circutar as Annexure-1.
 3. Highlights of the Policy: The objective of the poticy is to put in ptace a frame work for
operational functions in the Eank for effective Operationat Risk Management. This
document extends good insights to staff to understand the products/processes in better

4. Coverage in the Policy: The tatest guidetines/circutars atong with basic information on
processes/products are etaborated for better understanding and to get a reference in
singte document. The Poticy is divided into fottowing Eroad areas/components

{ Basics of Operations Poticy

a Basrc Operating ModeL of the Eank
{ Other parts of Operations
{ Compliance retated parameters
a customer related functions
a Supervjsion and Monitoring
+ Safety and s€curity
{ Branch support system
{ Branch Profitabitity
{ Vatidity & Review of the Poticy

5. Conclusion: The rationaLe of having a Policy on Branch Operations is:

{ To have a better unde6tanding of Operationat Proc65 and the embedded risk.
{ To develop operational practices on various operationat issues those are required by the
bank to protect the interest of the customers, emptoyees and alt stake hotders'
{ To devetop proactive operational system in place for reporting to the Corporate Governance
Team/Board.
{ To estabtish a Standard Procedure in branch/offices functioning and procedures.

6. As per the regutatory requirement and course of operations, guidetines/circutars are issued
/
by different verticals on adoption of products processe5 in order to extend ease to
customers and Staff. These guidetine5 provide 360degree view of the retevant information
to the fietd functionaries. Protonged efforts are made to incorporate/add atl the new
guideLines issued by different verticals in this Poticy during its currency as Operations
encompass a vast area of activities. Thus branches/Fietd Functionaries are advised to
familiarize themselves with this poticy and atso with the Suidetines issued by rerpective
verticats from time to time.

AIt branches/Fietd Functionaries are thus requested to take careful nolq of the above and ensure
comptiance. t\
lr

N7
[A.K Vinodl
rchief General ,,tan.8er & COO

Enclosed:
\^'- v .,Ar-.8/
Annexure-l: l odification/Addition/Deletion to Policy on br.nch OPerations 2024'25
Annexure{l: Policy on Branch Operation5 2024-25
Hindi Version follow5.
 *hyrvl0r,:?l.M
Modification/Addition/Delelion lo Policy on Branch operalions 2024-25 Anncxure-l

Sr.No Polnt No Pa8e Nature of Exirtin8 provisions as per Pollcy Amendments Proposed in the Policy Jurtifications / Clarif ications
(Exirting (Propo3€d No change

1 Point 2.7 1 CIF/Opening of new CASA/l\ odification updation in the tystem

7. Point Poini 2.13 1l- Updation Letter of Thanks i5 5ent by the Letter of Thanks is sent centralty now ljpdation in the system
2.13 14
3 15 Latest Guidetines by RBI - At the Eank has developed the functionatjty to Laiest guideline as per RBI
2.15.2 2.15.2 tlme of opening the current a/c, flag the current accounts with
ClCs (Credit lnformatlon appropriate option as customer DOR.CRE.REC.23/21.08.008/2022
2l DATED 19.04.2021
Company) report of the applicant declaration taken, cotle(tion account,
has to be generated and R8l Escrow M€chanism and exempted
defaulters list in Bank lntranet site category a(count. Branches/offices are
har to b€ venfied to ensure that instrKted !o fottow the guideline! of
the entity does not have a ftagging current account white openinS
borrowing arrangement with other of the current account as w€tl a5
Banks and is noi on the list of modifying of the current accounl.
defaulters. ln cale branches come Presentty a s)stem is in place to get
across such instances, a reference approval from Regionat Offices for
shoutd be made to the Lending opening of current accounts, The
Banks before openinq such cLrrrent approving officiat at Regjonal office are
account! in order to secure credit havlng access to the CRILC and other
dis.iptine in banking so that there credit information aSencies and after
irno diversion of fundr by the getting the information from s(rch
borrower to the detriment of aqencies, take! decision to open current
banking system. Eranches should
follow the guidelines as
mentioned in l.C. No. 03261.2022
dated 29.04.2022 on opening of
Current Account and CCIOD

4 17 On re(eipt of cheque book at On receipt of cheque book at branches, Updation in the system
7-16-1 2.16.1 branches, branches have to branches have to physicatty count the
physically count the chequebooks chequebooks and tatly it w]th the
and talty it with the dispatch dispatch details. lf there is any
details. lf there is any dis.repancy it should be brought to the
dis.repancy it shoutd be brought notice of CBollumbai on the mait id
to the notice of CBO Mumbaion chequebook@unionBankof india.com.
Eranches can get information's like
the mait id
ch.quchx . unionllantofi
oepanment is buildinq'up the
ndia l;om. dispatch date & tracking number in
CHQBOO( menu I caiegory shortly.
6k
\<(
5ynem for tracking Chequebook

Pagc I ol'5
1-
 @Tr*tt,',y?ifr!
Modification/Addition/Delction to Policy on Branch operatiors 2024-25 Aflnexure-l

Sr.No Point No PaSe Existing provisions as per Policy Amendments Propo:ed in the Pollcy Jurtifications / Clarification5
(Existing No change

5 21 lJpdation Ctear'ng Mechanism in lndia CuideLines on Coltection, Processing & For better clarity
2.17.3 7.17_3 Handling of Cheque

6 25 Adoption of Positive Pay System it Adoption of Positive Pay System is at To incorporate the changes in
2.17.9 2.17-9 at the discretion of the customer. the dlsaretion of the customer. posjtive mandatory limit
However, lf a customer is opting However, jf a customer is optinq for
for Positive Pay System, then it i5 Posltive Pay Sy5tem, then it is
obtigatory to present the cheque obtlgatory to pre5ent the cheque
through Positive Pay S)stem for an through Positive Pay System for an
amount ol R5.5.00 tacs and above. amounr of Rs.2.00 Lacs and above.
Role ofService Sranch: as the Role of Service Branch: tu the
instrurnent is not the part of PPs instrument is not the part of PPs data,
data, Service Branch user may SeMce Eranch user may reie.t the
reiect rhe lnstrument if it is innrufiEnt if it is Rs.2.00 tacs and
Rs.5.m lacs and above.
For cheques below Rs.5.00 lacs, For cheques beLow Rs.2.00lacs, seNice
Service Branch user may take Eranch user may take decision as per
decision as per extant guidelines extanr guidellnes avaiLabte in the Bank.
avaltabte in the Bank
7 Point l.15 l3 Checkltt before Day End Process For better ctarity and
understanding
8 Point 1.17 l5- Updation Cash management at Branches Efficient Cash manag€ment at Sranches Rephased for better clarity and
t.r7 l6 understanding

9 Point 1.17 37 Addition At ATM- Cash Replenishment RBI through its circutar No RBI/2017- A5per RBI'S circular No
l.r6 I E / 162 dated aprit 1 2, 2018, had addsed RBI/2017-18/162 dated Aprit 12,
impternentation of cassett$ Swap 2018
method for cash Reptenishrnent ln ATA s.
10 Poinr 3.18 Addition Door step Banking Bank har authorized PSB Atliance Pvt. updation in the system
1.17 Ltd. for engagement of Business
Correspondents for providinq 0oor Step
Banking Services and the number of
centres for extending door step banking
services is being graduatty increased to
7900 centres Pan lndia.
11 a. union Virtuat Connect {llvconn. 46 Updation in the system
t.19.1 1.20.1 services through WhatsApp)
b. Union Eank Voice Assistant (UVA)
c. Google Business Messaging {GBM)
I

d. Poritive Pay System

U( Page2or5
 @T&t0,,y?ifr
Modification/Addhion/Delelion lo Policy on Branch Op€ralions 2024-25

Sr.No Point No Page Existing provlsion3 ir per Pollcy Amendments Propor€d in the Policy Jurtitication! / Clarif ic.tions
(ExistinB No chinBe

1? Point 46 Fotlowing Eack-end Pro(esses have been Updation in the system

3.19_1 3.20.2 automated utjng RPA:
a) NEFT reconcltiation
b) Doorstep bankinq data update
in My Dlary Po(at
c) |MPS report download
d) Payment of Eonds

13 De(etion Transferred to Capitat Market

3.21,

3.23
14 Point 3.22 Currency Chest Currecy Chest Rephased for beiter clarity and
1_24 understanding

15 Deletion Cash Deposit Machine Disaountinu€d

1.25.10

L-Y

Page 3 of5
 @ita 1$lunanaa*
Modificatior/Addition/Deletion to Policy on Branch Operations 2024-25

16 57 Updation Catl Centre: Bank h.s an Eank has a Catl Centre which offer5 lJpdation in the system
3.25.15 1.23.14 uninterrupted 24x7x165 Banking uninterrupted 24x7x165 Banking services
s6ryi.e! to its customer!. Catts to its customers. calts can be taken by
the IVR in 14 Regionat tanguages namely
can be taken by the IVR in 7
Assamese, Sengati, Guirati, Matayatam,
Regionat languages beside5 Hindi /\ arathi, Tamlt, Tetugu, Kannada, Oriya,
and Engtish. The Atl-lndia TotL Punjabi, urdu, Xonkani, Khasi and
Free numb€rs are 18m222214 Kashmiri betides Hindi and Engtish. The
and 18m20822,t4. The charged att.lndia Tolt Free numbers are
number is 080-61817110. The I Afi17224, 1 8fo20A2244, 1 8N22??41

dedicated number for Non

and 18001251515.The chargeabte
number is 080-61817110. The dedicated
Resident is +9180618171 10.
nLrmber for Non Resident is
+918061817110. Fund transfer facility
upto Rs.5000/- is also made avaitabte in
lVR. For detait5 refer lntormation
cir.No.06116-2023 dated 22.06.2021.
The seMces Offered by Calt Centre are
mentioned as under:
lnbound Catts: Responding to Queries,
service requests and complaints of the
customeB tanded through totl free Nos

Outbound calls: Welcome calt.

0ormant/lnactive Account Calting, Union
diat, Catl to NRI customers, overdue
to(ker ac cattinS, lead5 on a3Sregator
catling, leads on alternate delivery
channet calling, EFRM, IVR CatL back.
chatbot Catt back, Anatytics catling.
Chatbotr Responding to Queries rais€d
throueh corporate website, internet
banking and Vyom app.

Emait: Handting of Customer tailored

emails and outbound emails retated to
cyber fraud are taken up 2417 by Catl
Ceotre.
The perlormance of the Catl centre is
measured based on SLA Parameters viz *"\
Catl FLow for outbound, Syltem
'( *
avallabltlty, CaLt Queue waltlng tlme 3\D [.:,)
i
(Calts attended within 20 secs), Calt
abandonment rate, Calt Quatity Score, ar,?;
Occupancy, Manpower, SLA penalty for
.hatbot. C.SAT etc.

Page 4 of5
 @*&t0r,y:l$
Modification/Addition/Deletion lo Policy on Branch opera(ions 2024-25

Sr.No Polnt No Page Existing provislons as per Poliq Amendments Propos€d in the Policy Justif ication5 / Clarificationt
(Existin8 (Propoi€d No change

17 53 Addition a. UVConn (WhatsApp Eankin8) Updation in the system

3.22.16 b. UVA (Union Bank Voice
3.22.17 Assistant)
3.22.18 c. GBM (Google Eusiness
t8 55 Mahita Samman Savings Certificate, 2 02 3 New Scheme Addition
3.2,(.8
t9 Polnt 5.12 70 Updation Death Ctaim lntroduction of death ctaim portaL to Updation in the system
5.12 (h) lodge the claim ontine by
ctaimanis/Nominee and further
settlement by respeative delegated

20 90 Updation With a view to provide With a view to provide competitive edge Updation in the system
9.1.1 9.1.3 competitjve edge to the branches to the branahes concession in service
concession in seNlce charges are charges are given to cust
given to customers on case to case to case basis on merits of each cases.
basis on merits of each cases. Proposat for waiver/concession in
Commitlee on Service charges at servicecharges (other than advances and
central office is empowered to forer charges), Branche!/ROs/F6MO5
consider concession in ervices after carrying out the cost benefit
charges on case to case basi! anatysis lhatlsubmit the same to Deposit
Depa^ment for final
from CAC l/lll lll.
^,lobitization
approvat

2'1 36 Detetlon ln branches due to exigencies, if lnformation obsotete now

1-17.1 tor any reason dual custody ls not
posslble, then with prior
permission from RSionat offlce,
Branch Head/Dy-Eranch Head can
hotd both the keys fora period not
exceedine :l (foun days.

u\,*\1
l\t /'
ChiefC.nerrl Nlrnager and COO

YYds'
( hsirlurr,r lnl.fltl Page 5 ol 5
 @wto uanea*
@l
Policy on Branch Operations 2024-2025

fitqzrjf (fi1 un,on B?,n![

POLICY ON
Branch Operations 2024-25

qfuqdd6
6 ltil
t"t*, Y ,
tJnionBank
ot tnctia

OPERATION DEPARTMENT, CENTML OFFICE ANt{EX. MANGALURU

Mangatadevi Tempte Road, Pandeshwar Mangaturu, Karnataka - 57500'l
Ph: 0824-2861360; E-maiL: operations.team@unionbankofjndia.com

v\'
Policy on Branch Operations *A*-* lO union aa*"
Table of Contents

S.No. Particula15 Pase No.

1 Easics of Operations Policy 1-l
1.1 Preambte 1

1.1 Scope and coveraqe of the PoticV 1-2

1.3 Objective z
1.4 Framework of Operations Poticy 1.1
1.4.1 Code of Conduct 2
1.4.2 Know YoUr Customer 7-3
1.4.3 Simptified KYC measures l
2 Basic Operating Model of the Bank 3-25
2.1 Background 3-4
2.2 Relationship between Bank and Customer 4
Banker Customer Relationship 4.5
2.4 Constitution of customer 5
Types of accounts 5-6
1.6 Opening of Savings Bank Account
2.7 CIF/Opening of new CAsA/Modif ications 7
2.8 Processes avaitabLe for openinq of SB Accounts 7-10
2.8.1 Online account openjng process 7-8
7.8.7 lqentralizes Account Openinq (CAO) process throueh DMS 8-9
2.8.3 Butk account opening process 9
2.8.4 Account opening process through BC Mode 9,10
2.8.5 Account opening process throuqh e-KYC in branches 10
2.8.6 Account opening process in Branches usine Finacte directLy 't0
2.9.1 Account Openjng Form (A0F) 't0-11
1.10 Nomination 11-12
1.11 PAN/Form 60 12- 13
7.12 Form 15G/H 13
2.13 Letter of Thanks 13-14
2.14 Verification by Branch Officer 14
2.15 Types of current account and its openinq 14-15
2.15.1 KYC Documents 15
2.15.2 Latest gujdelines of RBt 15-16
2.16 Cheque book issuances 16-18
2.16.1 Methods to appty cheque book 16-17
7.16.2 Detivery of cheque books 17
2.16.3 Loose Cheque 't7-18
7.16.4 Withdrawal form 18
2.17 Cheque Truncation System (CTS) 18-25
2.17.1 Features of CTS 18- 19
2.17.2 Recognition of CTS 20'10 cheques 19-11
1.17.3 Clearing mechanism ln lndja 21-12
2.17.4 lnward CLearing Process 22
2.17.5 Outward Clearing Process 22-74
2.17.6 Rote of presenting and Cottectinq Bank 24
2.17.7 Role of Paying Bank/Drawee Bank 24

tv
Policy on Branch Operations
g6,+i*k @l untat ea,r,#
Annexure ll
2.17.8 Rote of Reqionat Offices 25
2.17.9 Positive Pay System 25
3 Other parts of Operations 25-56
3.1 Finacte user id and password, role, Biometric access, maker checker 25-26
3.2 Cash withdrawat 26
3.2.1 Payment/withdrawal at non-base Branch by Account Hotder and third 26
party
Cash deposit z6
3.4 Demand Draft/Pay Order 26-77
1.5 Standing lnstructions 27
Stop payment 27
1.6.1 Jtop payment of cheques 27
3.6.2 Stop Payment of Drafts/Pay Orders 27
3.7 Fund Remittances 27 -28
3.8 FDlRD account opening 28
3.9 Back dated account opening z8
3.10 Tax Deduction at Source (TDs) 28-30
3.1 1 Safe Deposit Vault (SDV) Lockers 30
3.12 lefe !99pUC ilqqm papers lo-11
3.13 NEFT and RTG5 l1
3.13.1 Nationat Etectronic Fund Transfer (NEFT, 31
3.13.2 Reat Time Gross Settlement (RTGS) 31
1.1 3.3 Faited RTGSTransactions 31
3.14 Account statement and passbook 31-33
3.14.1 Account statement (Current accounts) l1-32
3.14.7 Account statement/Passbook (SB accounts) 32-33
3.15 Checktist before Day ' End Process ll
1.16 Cash Manaqement Services (CMS)
3.17 Efficient Cash Manaeement at Branches 35-44
3.17.1 Handting of Cash Keys at Branch, ATM and Currency Chest 36-42
3.17.? Vendor Manaeed ATMS 42-43
3.17.3 Surprise Verification of Cash at Currency Chest 43
3.17.4 Detection of counterfeit notes 43-44
3.18 Door Step Banking (DSB) Services 44-45
3.19 Queue Management Services (QMS) and Singte Window Operations 45-46
(Green channet) AtonversationaL Banking
3.20 Automation in ODerationaL Processes 46
3. 20.1 lnternaI Proces5es 46
3. 20.2 Robotic Process Automation (RPA) 46
3.21 AlyBranch Banking (ABB) 46-47
3.22 Currency Chest 47 -49
3.23 Digitat channets/products 49-53
1.23.1 lnternet Banking 49
3.23.2 SMS Banking 49-50
3.21.3 POS (Point of Sates)Terminat 50
3.22.4 FASTag 50
3.23.5 IMPS (lmmediate Payment Service) 50
3.23.6 Debit Card 50
Policy on Branch Operations @r"k 1jlu"we",g
3.73.7 Credit Card 50
3.23.8 Gift Cards 50-51
3.23.9 ATM Bankine 51
3.23.10 Cash Deposjt Machine (CDM) 50
3.23.11 Semi Automatic Passbook Printers (SAPBP) 51
3.23.12 Cheque Deposit Machine (CDM) 5'l
1.23.13 ApD Bankinq 51-52
3.73.14 Catt Centre 52
3.23.15 lJnion Cashtess Campus 52
3.23.16 UVConn (WhatsADD Eankinc) 53
3.23.17 UVA (Union Bank Voice Assistant) 53
3.23.18 GBM (Gooele Busjness Messaqinq) 5l
3.24 Govt. Business Retated 5l-56
3.24.1 Pubtic Provident Fund 5l
3.14.2 Senior Citizen's Deposit Scheme 2004 53-54
1.24.3 Sukanya Samriddhi Scheme 54
1.24.4 Kisan Vikas Patra (KVP) 54
1.24.5 AtaL Pension Yojana (APY) 54
3.24.6 NationaI Pensjon System (NPS) 54-55
3.24.7 E-Stampine 55
3.24.8 MahiLa Samman Savinqs Certificate, 2023 55-56
4 Compliance related parameters 56-62
4.1 Anti- Money Launderine (AML) 56
4.2 Obtigatjons under Preventjon of Money Launderine (PML) Act 2002 56
4.3 Non Profit Orqanization (NPO) Transaction ReDort (NTR) 57
4.4 Counterfeit Currencv ReDort (CCR) 57
4,5 Cross Border Wire Transfer Reportinq (CBWTR) 57
4.6 Suspicious Transaction Report (STR) 57-58
4.7 Cash Transaction Reoort (CTR) 58
4.8 Payment of Premium to Deposit lnsurance & Credit Guarantee 58-59
Corporation (DICGC)
4.9 Depositor Education and Awareness Fund (DEAF) 59
4.10 Procedure for remittance to DEA Fund and Refund Ctaim 59
4.11 Unjform Customer ldentifjcation Code (UCIC) 59-60
4.12 Beneficial Owners 60
4.13 Reportjng to Govt. Authorities: CBt, ED, SEBI, CVC, Cyber crime cett, 60
Excise/custom authorities etc.
4.14 lssuance of Caution Advises/Circutars 61
4.15 Risk Management 61
4.16 Business continuity Ptan 61-6L
5 Customer related functions 62-72
5.1 Workinq hours of Eranch 62
5.? Commencement of Employee Workinq Hours 62
5.1 Customer service Guidetines 62-64
5.4 lnformation to be disptayed at the prominent place of the Eranch 64-66
5.5 !!!to!9!I99!l!gl!!! er Service Committee Meeting 66
5.6 Staff meetino 66-67
5.7 Decoy customer 67
Policy on Branch Operations
LA"r* l@ un-n r",g
5.8 Compensation tocustomer 67
5.9 Customer comptaints and thejr redressat 67
5.10 Union Care Handbook on customer comolaints 67 -68
5.11 EASE aeenda 68-70
5.11.1 Dedicated Coonters/Preference to Senjor Citizens, Differentty abted 68
Der50n5
5.1 1 .2 Ease of submittine Life Certificate 68
5.1 1 .3 Cheque Book Facititv 68
5.11.4 Automatic conversion of status of accounts 68
5.1 1 .5 AdditionaL Facilities to visualty imDaired customers 68
5.1 1 .6 Ease of fitine Form 'l5G/H 68
5.11.7 Customer Service Committee Meetinqs 69
5.1 1 .8 sOP of Meeting 69-70
5.12 Death ctaims 70
5.11 Avaitabitjty of basic amenities to customers in Branch 70.71
5.14 Customer Care tJnit (CCU) 71.72
6 SuDerYision and r onitorinc 72.82
6.1 Responsibitities of Branch head 72-73
6.2 Record keeDinq and maintenance 73
6.2.1 Current Records 73
6.2.2 Otd Records 73
6.2.3 Security Documents and Titte Deeds etc 73
6.2.4 Storaqe of Records 73-74
6.2.5 Retrieval of Record 74
6.J Mandatory ReDort and Exceotion ReDorts 75
rr.l.l Mandatory ReDort 75
6.3.2 Exception Report 75
6.4 Exit interview for ctosure of account 75-76
6.5 lnspectjon and Audit 76
6.6 Office Accounts and their purpose 76
6.6.1 Bitts Pavabte Accounts 76-77
6.6.2 Sundry Deposit Accounts 77
6.6.1 Dicitat AuthoritY Cheoues 77 -78
6.6.4 POB Accounts 78-80
6.6.5 Suspense Account 80-81
6.7 Transfer of Old Entries in Office Accounts 82
7 Safetv and securitY 82-85
7.1 Precautions durinq ctosinq of Branch 82
7.2 Basic Security Measures in Branch 82
7.2.1 lncidents of robberv. burqtary and other forms of crimes in the Bank 82
7.2.2 Branch Dremises 82
7.2.3 The buildjng infrastructure at branches 82-81
7.2.4 Entry into the Branch 83
7.2.5 Etectronic ALarm System 83
7.2.6 CCTV (Ctosed Circuit Tetevision) 83
7.7.7 Retationship with Landtord, Police, Fire Department, Vendors, 83-84
Concurrent & statutory auditors etc.
7.2.4 Fire Safetv EouiDment's and Uokeep u
 *A""* ljl union ea*
Policy on Branch Operations

7.7.9 Cvber securitv/information securitv 84-85

8 Branch suDDort sYstem 85-89
8.1 Ambience of Branch 85
8.2 UokeeD of Branch oremjses 85
8.3 Office/Branch Keys 86
8.4 Emereencv catl numbers 86
8.5 ComDtaint Box/Recister 86
8.6 DisDtav of mandatory Boards at promjnent ptace 85
a.7 Disotav of Branch tjminq board 86
8.8 Sicnaqe Board of Branch 86
8.9 Muster RoLt/Attendance regjster 86
8.10 Ooeration /Service Eoards 86
8.'11 l.letwork Etectronic Disptay Unit (NEDU) 86
8.12 Ethic Packaqe 86-87
8.13 CMRD Portat 87
8.14 OCRM 87
Mv Diary a7 -a9
8.15
9 Branch ProfitabilitY 89-91
9.1 Non-lnterest income and its components 89
9.1 .'l Service charqes 89-90
9.1.2 Concession/waiver of service charSes 90
9.1.l concession/waiver in lndividual cases 90
9.1.4 Leakaqe of lncome 90-91
91
10 Vatidity & Review of the Policy

:"\9i

ao*r-ra",t*., fi
 Annexure-II

OPERATION DEPARTMENT, CENTRAL OFFICE ANNEX - MANGALURU

Mangaladevi Temple Road, Pandeshwar Mangaluru, Karnataka - 575001

POLICY ON BRANCH OPERATIONS

2022022-02
1. Basics of Operations Policy:

1.1 Preamble: The Banking Sector in India is showing a paradigm shift and witnessing
consolidation. Hence, the big challenge is to re-align Operations and services for
retaining and benefiting customers and eventually the Bank.

In the recent past, Banking Industry has been experiencing radical changes in
regulatory requirements, modifications in legislations and growing usage of
electronic platform as delivery channels due to spurt in Banking transactions. This
has necessitated the need for more structural solutions and answers to manage
operational risk and makes them more robust and sustainable over time. Penal
provisions are also introduced wherever non-compliance is noticed by the regulators.
This fact combined with the resulting financial cost and reputation damage, makes it
essential for commercial organizations including Banks & Financial Institutions to
think seriously about how best to manage Operations.

Involvement of multiple regulators, diverse regulations, complex financial products

and expansion in multiple jurisdictions subjected Banks and financial institutions to
comply with a plethora of rules and regulations. The operational function is an
integral part of Bank’s Business activity and Corporate Governance Structure. A Bank
should hold itself to high standards while carrying on Business and at all times strive
to satisfy effective Operation Policy and Procedures are followed. Failure to consider
the impact of actions on its stakeholders such as, customers, employees and the
shareholders may result in significant adverse publicity and Reputational damages.

In the past few years, there is a Brain Drain situation Bank has come across due to
large number of retirements of the Senior Executives. To meet this challenge,
upcoming new Branch Heads being a face of the Bank, need to understand the
corporate needs and prepare a road-map for day to day operations. This policy may
serve as a hand holding for changed scenario of banking to benefit young generation
to shoulder the corporate expectations with full responsibility.

1.2 Scope and coverage of the Policy: The policy shall cover operation of Domestic
branches and shall broadly cover the following:
1.2.1 Conduct of Branch Operations & Branch Management
1.2.2 Conduct of Good Customer Service
1.2.3 Adherence to Consumer Education and Protection

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1.2.4 Update on Customer Rights, Compensation, Service Charges, Banking Products,
Agreements

1.2.5 Understanding Payment and Settlement System

1.2.6 Adherence to Internal Policies and Processes, Information Circulars, Guidelines
1.2.7 Meeting Statutory Compliances, Accounting Standards
1.2.8 Timely Redressal of Grievance
1.2.9 Currency Chest Management, Cash Management Services etc.

1.3 Objective: The objective of the policy is to put in place the operation functions in
the Bank for effective Operational Risk Management. The policy aims at:
1.3.1 To have a better understanding of Operational Processes and the embedded risk.
1.3.2 To establish proactive Operational Risk Management culture, which includes
measures to identify, monitor and control operational Risk inherent in various
business lines and activities of the Bank.
1.3.3 To have proper understanding of operational system in the Bank
1.3.4 To develop operational practices on various operational issues that is required by the
Bank to protect the interest of the customers and employees.
1.3.5 To develop proactive operational system in place for reporting to the Corporate
Governance Team/Board
1.3.6 To improve confidence in operational and financial transparency
1.3.7 To establish a Standard Procedure in branch/offices functioning and procedures
1.3.8 To have inclusive growth in business through hassle free and customer friendly
operations

1.4 Framework of Branch Operations Policy:

1.4.1 Code of Conduct: Bank has adopted the Code of Banks commitment to customers
devised by the Banking Codes and Standards Board of India (BCSBI). BCSBI is dissolved
by RBI and has set up CEPDC (The Consumer Education and Protection Department),
issued the Charter of Customer Rights (CoCR), and considerably strengthened the
Ombudsman mechanism to enhance consumer protection. Operation Vertical is
overseeing the Code of Conduct prescribed by Consumer Education and Protection
Department. The Principal Nodal Officer of the Bank is Head of Operation Vertical.
Similarly, all Regional Heads/Dy. Regional Heads represent as defacto Nodal Officers
at the Field Level.
1.4.2 Know Your Customer (KYC): Know your Customer means establishing identity,
suitability and risk involved in maintaining a business relationship. The objective
of KYC/AML guidelines is to prevent Banks from being used, intentionally or
unintentionally, by criminal elements for money laundering or terrorist financing
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activities. KYC procedures also enable Banks to know/understand their customers
and their financial dealings better which in turn help them manage their risks
prudently. For detailed guidelines, please refer following circular.

S.N. Details of circular Date Content

1 IC:3959-2023 28.03.2023 KYC -AML Policy 2023-24
2 IC:4148-2023 07.06.2023 Amendments to KYC-AML Policy for
the year 2023-24
3 IC:04437-2023 10.11.2023 Amendments to KYC-AML Policy for
the year 2023-24

1.4.3 Simplified KYC Measures:

a. Single Document for Proof of Identity and Proof of Address along with Account
Opening Form (AOF): If the officially valid document (OVD) submitted has both,
identity and address of the person, there is no need for submitting any other
documentary proof. The information containing personal details like name, address,
age, gender, etc., and photographs made available from UIDAI as a result of e-KYC
process can also be treated as an Officially Valid Document.

b. No Separate Proof of Address is required for Current Address: Since migrant

workers, transferred employees, etc., often face difficulties while submitting a
proof of current address, such customers can submit only one proof of address
(either current or permanent). For local address, a simple declaration can be
obtained where a Customer has provided his/her Aadhaar number.

c. Small Accounts (BSBDS): Those persons who do not have any of the officially valid
documents· can open Small accounts. Small accounts can be opened on the basis of a
self-attested photograph and putting her/his signature or thumb print in the
presence of an official. These small accounts would be valid normally for a period of
twelve months. Thereafter, such accounts would be allowed to continue for a further
period of twelve more months, if the account holder provides a document showing
that she/he has applied for any of the officially valid document, within twelve
months of opening the small account.

2. Basic Operating Model of the Bank:

2.1 Background: As per Section 5(b) of the Banking Regulation Act, 1949, "Banking"
means accepting, for the purpose of lending or investment, of deposits of money
from the public, repayable on demand or otherwise, and withdrawal by cheque,
draft, order or otherwise. On accepting deposits, Bank pays interest and on lending it
earns interest. Interest earned on loans less interest paid on deposit is Bank’s interest
income. On providing various Banking services i.e. NEFT/RTGS, DD, SMS, processing
charges on loans etc, Banks earn non-interest income in the form of service charges.
Besides this, Banks also undertake other financial services or para Banking activities
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i.e. credit cards, primary dealer, leasing, hire purchase, factoring, selling of
insurance and mutual fund products etc. where Banks earns fee-based income. Bank’s
profit comprises interest income and non-interest income/fee-based income. Beside
Brick and Mortar Banking, now-a-day Banks made various alternate modes/channels
available to customers for carrying their Banking transactions through Paper-less
Banking i.e. Internet Banking, Mobile Banking, UPI, ATM, UVConn etc. Since present
Banking Model offers Commercial Banking as well investment Banking services in
varying proportion, it is referred as Universal Banking Model.

Accept Deposits from Regulatory Requirements

Individual, Corporate i.e. CRR, SLR, Capital
etc. Adequacy etc.

Borrow Money from RBI Loans to Individual,

& Other Market Players Corporate, institutions
etc.
Bank
Internal Generation of Investment in equity,
Profit/ Capital bond, Forex Operations

Raise Fund from

Market Para Banking Services

2.2 Relationship between Bank and Customer: Before understanding the relationship
between Bank and Customer, it is important to understand the meaning of the
Customer. As per KYC-AML policy, a ‘Customer’ is defined as:

2.2.1 A person or entity that maintains an account and/or has a business relationship with
the Bank;
2.2.2 One on whose behalf the account is maintained (i.e. the beneficial owner);
2.2.3 Beneficiaries of transactions conducted by professional intermediaries, such as Stock
Brokers, Chartered Accountants, Solicitors etc. as permitted under the law.
2.2.4 Any person or entity connected with a financial transaction which can pose significant
reputational or other risks to the Bank, say, a wire transfer or issue of a high value
demand draft as a single transaction.

2.3 Banker Customer Relationship: On opening of account with the Bank or availing
services of the Bank, a binding between the individual/non-individual and Banker
gets established. Such relationship is a contractual relationship. Banking is a trust-
based relationship. There are numerous kinds of relationship between the Bank and
the customer. The relationship between a Banker and a customer depends on the

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type of transaction. Thus, the relationship is based on contract, and on certain terms
and conditions.

S.N. Type of Transaction Bank Customer

1 Deposit in Bank Debtor Creditor
2 Loan from Bank Creditor Debtor
3 Safe Deposit vault (SDV Locker) Licensor Licensee
4 Safe Custody Bailee Bailor
5 Issue of Draft Debtor Creditor
6 Payee of a Draft Trustee Beneficiary
7 Collection of Cheque Agent Principal
8 Pledge Pledgee (Pawnee) Pledger (pawnor)
9 Mortgage Mortgagee Mortgagor
10 Hypothecation Hypothecatee Hypothecator
11 Money deposited, but no instructions for
Trustee Beneficiary
its disposal
12 Article/Goods left by mistake by
Trustee Beneficiary
customer

These relationships confer certain rights and obligations both on the part of the
Banker and on the customer. However, the personal relationship between the Bank
and its customers is the long-lasting relationship. Some persons who do not have an
account-based relationship with the Bank but undertake transactions with Bank are
called “Walk-in Customer”.
2.4 Constitution of customer: From customer’s constitution point of view, customers
may be divided in following categories:
2.4.1 Individuals
2.4.2 Joint Individuals
2.4.3 Proprietary concern
2.4.4 Hindu Undivided family
2.4.5 Partnership Firms
2.4.6 Companies / Corporations
2.4.7 Trusts
2.4.8 Local Bodies/Government Departments /Societies/Universities etc.,

2.4.9 Unincorporated association or body of individuals including societies

2.5 Types of accounts: Broadly accounts may be classified as under:

2.5.1 Deposit Accounts:
a. Demand Deposit Accounts

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i. Saving Bank Accounts
ii. Current Account
b. Term Deposit Accounts
i. Fixed Deposit
iii. Cumulative Deposit
2.5.2 Loan Accounts:
a. Term Loan Account
b. Cash Credit Account
c. Overdraft Account.

2.6 Opening of Saving Bank account:

2.6.1 Any one of the officially valid documents as proof of identity and any one of officially
valid documents as current address of Prospective customer may be accepted by
branches towards opening new accounts.

2.6.2 The Account Opening Form (AOF) is the principal document evidencing the
contractual relationship between the Bank and its Customer (Account Holder).
Hence, an Account Opening Form duly executed as per extant guidelines should be
obtained from the customer.

2.6.3 Branches should strictly comply with KYC Norms while opening the accounts i.e.
obtaining latest photograph, copies of identity/address proof duly verified with
originals and affixing the seal and signature of the official who has verified the
documents.

2.6.4 To rule out production of fabricated identity/address proof by prospective customer,

Sending Letter of Thanks has been centralized w.e.f. 21.09.2023. Letter of Thanks
will be printed centrally and sent to customer’s correspondence address by the
empaneled security printers of the Bank in Bilingual (Hindi & English) plus 9 Regional
Languages. All undelivered ‘Welcome Kit’ & ‘Letter of Thanks’ will be delivered to
the Home Branches.

2.6.5 Latest photographs: Latest Photographs of all account holders and Mandate / Power
of Attorney holder, if any, should also be obtained. Branches should obtain latest
photographs of Pardanashi women account holders also without exception.

2.6.6 Signature/thumb impression of the depositor should be obtained on the photograph in

the presence of the branch official at the appropriate place such that a part of the
signature/thumb impression appears on the photo and the remaining part appears on
the account opening form.

2.6.7 The customer has to be advised to fill up the nomination form. Refer IC
No.04008:2023 dated 05.04.2023 - Nomination facility in Deposits (individual and
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sole proprietor), De-mat, Safe Deposit Lockers & Safe Custody of Articles (only on
specific instructions from government authorities) Refer IC No. 04252:2023 dated
03.08.2023. If the customer refuses to make a nomination, branch shall obtain a
letter to this effect that he/she does not want to make a nomination.

2.6.8 In order to expedite the nomination in the existing account, Bank has enabled
registration of online nomination (e-nomination) through various digital channels like
VYOM, UVConn, Internet banking and by visiting bank’s website. For details, please
refer IC 04008-2023 dated 05.04.2023.

2.6.9 System level validation implemented to record nomination (registering nomination or

obtaining declaration for not willing to nominate) at the time of opening /modifying
of the eligible accounts.

2.7 CIF/Opening of new CASA/Modifications-

2.7.1 New CASA accounts are opened in Debit freeze mode. Account will be fully
operational on receipt of acceptance of KYC documents from CKYC registry. This is to
avert frauds taking place in new account through online mode.

2.7.2 CSOLOP check for signature scanning and tagging is one if the same is not completed
in T+5 days.

2.7.3 - CRM: Same Mobile number cannot be entered for more than 5 CIFs.
- Name change in CRM can be done by Ros only and the same is restricted to branches.
- SMS is sent to customers on deletion/modification of their mobile number in CRM.
- Deduplication process is checked in CIF – based on passport, driving license and voter
ID.
- PAN and Aadhar number entered in any CIF cannot be entered in another CIF.

2.8 Processes available for opening of SB Accounts: Various processes are available in
the Bank for opening of SB accounts, the details of which are as under:

2.8.1 Online account opening process: This process was introduced during Nov.2015 as an
alternate way of account opening for techno savvy prospective customers, wherein a
customer can enter the required information through online mode at his/her home or
work place (as per convenience) and submit the necessary documents at selected
Branch. The detailed process flow for opening of account is given as below:

a. Visit to Bank’s website and feeding personal information like Name, Date of Birth,
mobile number etc. and select the branch where to open account.
b. After authentication of customer mobile number through OTP, customer will feed
communication/permanent address, income, nominee and KYC document details.

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c. After submission, a screen will pop up showing a unique reference number, the
selected Branch address with a request to visit the selected Branch with KYC
documents and 2 latest passport size photographs. Reference number is also sent to
mobile no/email of customer.
d. The customer visits the selected Branch and show the reference number. Branch
official will open Bank’s website and punch the reference number and DOB/PAN of
the customer and download the filled AOF for printing.
e. Verification of original KYC documents and taking the signature of customer on
printed account opening form.
f. Branch will login to Finacle and use menu “OLACOPN” to generate the account
number.

S.N. Details of Date Content

circular
1 IC:00687:2016 07.12.2016 Online Savings Account Opening Process

2.8.2 Centralized Account Opening (CAO) process through DMS: The primary objective of
the Centralised Account Opening (CAO) process is to ensure standardization of SB
account opening process, uniform adherence of KYC norms, best in class customer
service and reduced workload at Branches. The detailed process flow for opening of
account is given as below:
a. After scrutinizing and verifying the application with all relevant Officially Valid
Documents (OVDs), the Branch User enters certain mandatory fields using
DMSACOPN menu in Finacle to open the account. After that, customer ID and
account number will get generated and branch can issue debit card and recommend
the customer to download VYOM app so that 100% account holders will have our
debit card and VYOM app.
b. After generation of account number, the Branch has to scan & upload account
opening form & KYC documents in DMS application immediately for processing at
National Processing Centre (NPC). Branch users have 2 options to scan the
documents i.e. UNION SCAN Mobile Application & DMS Scanners.
c. NPC team scrutinizes the documents and the data for opening of account is entered
by outsourced service provider based on the images of account opening form & KYC
documents uploaded by the branch. Finally, accounts are uploaded in Finacle and
Letter of Thanks are sent to the customers from centralized facility.

d. A welcome SMS is sent to customer on his/her mobile number after opening the
account at the Branch and a second SMS is also sent to the customer after
activation of the account at NPC.

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e. In case any discrepancy is observed while processing the accounts at NPC, the
account is sent back for rescan by NPC. The branch needs to clear the exception
raised within T+ 1 day and if there is additional documents/information required
from the customer then in such cases within T+ 2 days.
f. DMS Application is enabled to fetch CKYC number from CERSAI Portal, thereby
easing the Branches with regard to double scanning of documents for CAO and
CKYC. In cases where CKYC documents uploaded to CERSAI portal are rejected by
the CERSAI, the branch needs to resubmit the rejected records in CKYC Portal to
get CKYCR number within stipulated timeline of T+10 days.

g. Bank has deployed Intelligent Business Process Management Product Suite (iBPS)
with effect from 27th June 2022

h. NPC Vertical has revamped the DMS portal & Union Scan Mobile Application for
scanning of documents for Accounts Opened through DMSACOPN and issued detailed
SOP for branches.

2.8.3 Bulk account opening process: In order to provide convenience of SB account

opening in a short period, a new process was developed to open such accounts
through file upload mode using Finacle menu BACOPN. Detailed process flow for
opening of account is given as below:

a. Branches send request to NPC duly recommended by Regional Head and FGM for
permission for Bulk account opening in Finacle (minimum no. of count should be
100). Branch has to ensure the CKYC compliance.
b. Maker to upload the data file in CSV format using BACOPN menu
c. Opening of accounts with minimum mandatory fields
d. Checker to verify the data using Verify Records option. Upon successful verification,
the account numbers get generated.

SN Details of circular Date Content

1 IC:03000:2022 12.01.2022 Request letter for opening through file
upload mode
2 IC:01629:2019 23.07.2019 Bulk account opening through file
upload mode

2.8.4 Account opening process through BC Mode: As per the directives of RBI, Bank has
engaged Bank Mitras through corporate Business Correspondents (BCs). These Bank
Mitras, working as an extended arm of Branches are engaged in several financial
inclusion activities including PMJDY account opening through e-KYC. Detailed process
flow is given as under:

a. Resident along with Aadhaar details visits BC point for e-KYC account opening.
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b. BC clicks on new enrolment tab available in the device application and clicks on
proceed after entering the required details (Aadhaar no/VID No)
c. After successful biometric authentication basic details of the resident will pop upon
the screen which will be checked before proceeding further.
d. After fetching the basic details from UIDAI, all the remaining details of the resident
will be entered by BC. On the entry of these details along with Citizens Integrity
Pledge, a reference number will be displayed which will be shared to resident for
record.
e. Immediately the details will reach CBS through FI Gateway for account number
generation. After the completion of successful validations account number will get
generated. The account holder is permitted to do financial transactions at BC point
till the account holder complete the process of submission of physical account
opening form at the base branch with relevant documents as per extant guidelines.
f. After submission of the physical account opening form at base branch along with
relevant documents, the account holder will be eligible for transactions at branch,
issuance of cheque book, ATM card, digital banking facilities such as mobile banking,
internet banking etc.
CKYC compliance of these accounts shall be done as per the guidelines issued by NPC
from time to time.

2.8.5 Account opening process through e-KYC in branches: It is pertinent to mention that
Branches are also opening accounts using e-KYC mode after authentication of
Aadhaar from UIDAI. In this process, Branches are keeping all the documents of the
customers (i.e. account opening form and KYC documents) with them which are used
for scanning and uploading on CKYC portal for getting CKYC number from CERSAI and
also future reference.

S.N. Details of circular Date Content

1 IC No 4513:2018-19 10.10.2018 Instant PMJDY account opening through
e KYC at Bank Mitr
2 IC No 5504:2021 30.03.2021 PMJDY (BSBD) Account Opening Process
at BC Points in the Amalgamated Entity

2.8.6 Account opening process in Branches using Finacle directly: All the Branches of
Union Bank of India are linked to DMS. However, SB schemes which are not linked to
DMS can be opened directly in Finacle using HOAAC menu.

2.9
2.9.1 Account Opening Form (AOF): Banks has adopted a common simplified account
opening form. The details of the forms are as under:

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a. Common Account Opening Form (Individuals)

b. Common Account Opening Forms for non-individuals
c. Annexure I to account opening form
d. Annexure II to account opening form
e. Customer request form
f. Deceased Claim form

Henceforth Common account opening form for individuals has been formulated as per CKYC
templates and EASE Reforms. The CDR file for Common Account opening form is located at
following places in bank’s intranet:

S.No Location
1 My Diary> Reports
2 UBINET>Downloads>Application Forms

2.9.2 Common account opening form for individuals is formulated as per KYC templates
applicable to individuals. These fields are required to be filled up by customer
mandatorily. Accordingly, account opening form has been modified to incorporate
changes as per revised CKYC templates.

2.10 Nomination facility is available on all deposit accounts opened by individuals.

S.N. Details of Circular Date Content

1 IC:02279:2020 27.10.2020 Nomination Facility in Deposits,

Safe Deposit Lockers and Safe
Custody of Articles

2 IC:03135:2022 24.03.2022 PSB Alliance - Door Step Banking

(DSB) Services – Nomination and
Fund Transfer requests

3 IC:2806:2021 28.09.2021 Online Nomination through NeSL

and Aadhaar Authenticationdeath

4 IC:04008:2023 05.04.2023 Nomination in CBS for Deposits

accounts/Safe Deposit
Lockers/Demat accounts

a. Nomination can be registered by any individual in deposits, Safe Deposit lockers and
safe custody of articles (only on specific instruction of government authorities). It is
also available to an account opened by a Sole Proprietor. The Branch shall insist for
nomination in eligible accounts.

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b. In case the person opening an account declines to make a nomination, the customer
should be explained about the advantages of nomination facility.
c. If the customers still refuses to make a nomination, the Branch should obtain a letter
to this effect that he/she does not want to make a nomination.
d. In case a person opening the account refuses to give such letter, the Branch shall
record the fact on account opening form.
e. No nomination can be made by a person in representative capacity like Karta of HUF,
Trustee of Trust etc. A depositor can make nomination individually and joint
depositors jointly, as the case may be. However, in one account, nomination can be
made in favor of one individual only. There cannot be more than one nominee in an
account.
f. Only individual can be a nominee & not representative body i.e. Trust, Association,
Society.
g. Nomination can be made in favor of minor also, but in this case depositor/s will have
to appoint another person, who is not a minor, to receive the amount on behalf of
minor, in event of death of the depositor during the minority of the nominee.
h. A blind person or Pardanashin lady or illiterate person can be nominated but, a
lunatic cannot be nominated.
i. To print name of nominee in the passbook, branch has to attach “PRNTNOMNMY”
label in Account Label in OTHERS tab in HACM menu. But for that, Branch should
obtain written consent from the customer and held on record.

2.10.1 Bank in its continuous endeavor to provide better services to its existing customers
(savings deposit, Current accounts (sole proprietorship) and term deposit in
individual names) has launched online nomination facility through various digital
channels like VYOM, UVConn, Internet banking, by visiting bank’s website. For
details on Standard Operating Procedure, please refer IC No.2806/2021 dated
September 28, 2021.

2.10.2 Account Nomination and fund transfer are new services introduced under Pick up
service type in Doorstep Banking wherein customer selects the branch where the
filled nomination/ fund transfer requests forms are to be submitted. On receiving
requests, branches need to verify the sanctity of requests and accordingly take
appropriate action (Accept/Reject) as per extant guidelines of the Bank. Detailed
process flow is mentioned in the Circular no. 03135:2022 dated 24.03.2022.

2.11 PAN/Form 60: Quoting of PAN is mandatory for some specified transactions as per
guidelines of the Income Tax Department. In the absence of PAN card, customer shall
make a declaration in Form No.60.

The Manager/Officer of the Bank shall not accept the declaration where the amount
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of income of the nature referred to in item 22b (of Form No 60) exceeds the
maximum amount which is not chargeable to tax, unless PAN is applied for and
Column No 21 (of Form No 60) is duly filled.

It is now mandatory that every person who has been allotted PAN as on 01.07.2017 to
intimate his Aadhaar Number to the prescribed authority so that Aadhaar and PAN
can be linked. Ref IC No.06341:2023 dated 22.06.2023.

2.12 Form 15 G/15 H: Branches to guide the customers to submit form15 G/15 H before
15th April every year, in case their total income is less than taxable limit and interest
income is more than Rs. 40,000/-(for customers below the age of 60 years) or Rs.
50,000/-(for senior citizens). For details, please refer following circular.

S.N. Details of circular Date Content

1 IC:02134:2020 21.07.2020 Obtention of Form 15 G/15 H
from depositors

2.13 Letter of Thanks: Letter of Thanks to Customer/Introducer should invariably be sent to

account holders and introducers (if any). In case, letter of thanks is returned
undelivered more particularly with reason “undelivered/addressee does not reside
etc.”, the account should be frozen. Wherever ‘Letter of Thanks’ are returned
undelivered, cheque books should not be issued/delivered till the addresses are
verified/confirmed to the satisfaction of the Bank.

From June 2023 Bank is sending welcome message over WhatsApp in the newly
opened Saving & Current Accounts. The message provides the general information on
customer’s right and link for onboarding to digital journey by using VYOM & UVConn
for seamless & ease of banking. It is an endeavour to support the branches.

Sending Letter of Thanks has been centralized w.e.f. 21.09.2023. Letter of Thanks
will be printed centrally and sent to customer’s correspondence address by the
empaneled security printers of the Bank in Bilingual (Hindi & English) plus 9 Regional
Languages. In case of joint/ either or survivor accounts the letter of thanks will be
sent to all the recipients. The ‘Letter of Thanks’ contains the QR codes on customer-
oriented applications like, Mobile Banking (Vyom), WhatsApp Banking (UVconn),
Positive Pay, Internet Banking and Customer Rights. The envelope is also specially
designed to promote digital platform and assets & liability products. As you know,
Vyom application has more than 350 features, UVConn has 46 features plus 23
features will be added soon, and Positive Pay is protecting the customers from
cheque related frauds.

Welcome Kit: The Welcome Kit will contain ‘Letter of Thanks’ & 10 leaves
Chequebook in single envelope. Bank will be sending the ‘Welcome Kit’ wherever the
customer has opted for chequebook at the time of account opening. However, it
should be ensured that customer has maintained the minimum balance in the

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account wherever it is mandatory for chequebook, otherwise it will not be
downloaded in the chequebook request file. In the accounts where minimum balance
is not mandatory, like USSA etc., there will not be any issue in chequebook file. If
the customer has opted for the chequebook but not maintained the minimum
balance, only ‘Letter of Thanks’ will be issued. In such cases, branches to lodge the
chequebook request separately, if the minimum balance is maintained in the
account.

All undelivered ‘Welcome Kit’ & ‘Letter of Thanks’ will be delivered to the Home
Branches. The account will be marked as debit freeze through straight through
process centrally. In case the address is incomplete or there are discrepancies due to
which the Welcome Kit or Letter of Thanks could not be generated, these articles
will also be marked as Returned in the system and account will be centrally marked
as debit freeze.

Once the account is frozen due to return of Letter of Thanks, the branch is required
to carry out Enhanced Due Diligence (EDD) of the customer and re-activate the
account only after validating the records. Instruction Circular No: 04325-2023
dated 20.09.2023.

2.14 Verification by Branch Officer: While opening an account, Branch must adhere to
KYC- AML policy (IC: 03959-2023 dated 28.03.2023) of the Bank and other guidelines
issued by Bank from time to time. Official should invariably verify the account
opening form along with necessary documents obtained from the customer and
ensure that all requirements including due diligence are fulfilled to the satisfaction
of the Bank. At the time of opening of accounts, customers shall be required to
declare their Annual Income for last year and projected Annual Income for next year
in case of Savings account and estimated turnover for Current Accounts while
preparing their Customer Profile.

2.15 Types of current account and its opening: Current Account or current Deposit means
a form of demand deposit account wherein withdrawals are allowed any number of
times depending upon the balance in the account or up to a particular agreed amount.
Current accounts are non-interest-bearing accounts which are neither Savings Deposit
nor Term Deposit. This account is generally maintained for business purposes. Our
bank is having various Current account products such as General Current
account(CAGEN), Union Classic Current Account (UCCA), Union Micro Digital Current
Account (UMDCA), Union Trade Current account, Current account for corporates,
Union RERA current account, Union Cash Plus Current Account (UCPCA), CAMTR
(Current account Bank Mitr) and Specific Current Account(Accounts which are
stipulated under various statutes and instructions of other regulators/ regulatory
departments i.e. Nodal or escrow, collection account, accounts permitted under FEMA
etc). Refer following circulars for the same:

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S.N. Details of circular Date Content

1 IC:01944:2020 18.03.2020 Union Classic Current Account
(UCCA):Modification of Scheme
Features
2 IC:02052:2020 02.05.2020 Harmonised UCCA-Extension of
Operational Date & Clarifications
on cash deposit charges
3 IC:08575 20.02.2010 Union Classic Current Account-
Banks(UCCA-B)
4 IC:1388:2018 31.10.2018 Union Micro Digital Current
Account
5 IC:02856-2021 25.10.2021 Union Trade Current account
6 IC:19220:2020 17.12.2020 Current account for corporates
Electronically
7 IC:01807:2019 20.12.2019 Union RERA current account
8 IC:01861:2020 26.02.2020 Union Cash Plus Current Account
9 IC:942:2017 23.08.2017 CAMTR (Current Account Bank
Mitr)
10 IC:03261:2022 29.04.2022 Consolidated circular on opening
of current account
11 IC:03420:2022 08.07.2022 Monitoring of Current accounts
and Cash Credit overdraft
12 IC:03688:2022 07.11.2022 Opening of Current Account/ Due
Diligence
13 IC:4127:2023 01.06.2023 Union UNNATI- for Women
14 IC:04342:2023 26.09.2023 Labelling of ESCROW current
accounts in Finacle.

2.15.1 KYC Documents and Latest Guidelines by RBI: As per the constitution of customer,
Branches to obtain all stipulated documents as per I.C. No. 03171-2022 dated
30.03.2022 on KYC-AML Policy 2022-23.

2.15.2 Latest Guidelines by RBI: Reserve Bank of India vide its circular number
DOR.CRE.REC.23/21.08.008/2022-23 dated 19.04.2023 issued guidelines for opening
of current accounts and CC/OD Accounts by banks. In line with the same our bank has
issued Instruction circular no. 3420:2022 dated 08.07.2022 on monitoring of
current accounts and cash credit/overdraft accounts.

In addition to the above circular, bank has developed the functionality to flag the
current accounts with appropriate option as Customer declaration taken, collection
account, Escrow Mechanism and exempted category account. Branches/Offices are
instructed to follow the guidelines of flagging current account while opening of the
current account as well as modifying of the current account.

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Presently a system is in place to get approval from Regional Offices for opening of
current accounts. The approving official at Regional office are having access to the
CRILC and other credit information agencies and after getting the information from
such agencies, takes decision to open current accounts.
For detailed information kindly refer the SOP vide IC NO 04434 dated 08.11.2023 for
flagging of Current Accounts.

2.16 Chequebook Issuance: The customer in need of a fresh chequebook should be issued
a chequebook only on submitting the chequebook requisition slip (available in the form
of a perforated page, in the latter half of the chequebook) last issued to the customer
duly filled in and signed by him. New account holder may apply for chequebook by
submitting a letter of request/instructions as per Account Opening Form.

For existing accounts, normally cheque-books should not be issued in the absence of
prescribed requisition slip. However, under exceptional circumstances, when the
customer is not in a position to produce the requisition slip for reasons such as loss or
misplacement of the slip or due to some other genuine reason (to the satisfaction of
the Bank), such requests may be acceded to, if specifically authorized by the Branch
Manager. In the absence of the requisition slip, the account holder should come in
person to the Bank and submit an application/request on a plain sheet of paper. Branch
Manager should satisfy himself about the genuineness of the request.

a. As and when a customer asks for issuance of fresh chequebook without producing the
requisition slip contained in the previous chequebook issued to him, the counter
officer should ask him/her to produce the passbook of account. On verifying and
ensuring that the passbook pertains to the same account for which the fresh
chequebook is requested, he/she should take a print out of a Letter of Request (LoR)
for a fresh Chequebook from the system. The customer should be asked to fill up and
sign the said LoR in front of the counter officer. He/she should not be allowed to take
the LoR form outside the branch premises.
b. Branch Manager/Officer should ensure that customer tendering LoR is the account
holder himself/herself. In case an account holder is not physically present in branch,
the branch manager may consider the request based on merit of the case.

2.16.1 Methods to apply chequebook:

a. Though Branch: Account holder may apply for chequebook by submitting duly filled
and signed chequebook requisition slip (available in the form of a perforated page, in
latter half of chequebook) to Branch. New account holder may apply for cheque book
by submitting a letter of request/instructions as per Account Opening Form.
b. Through Digital Channels: Account holder may also apply for chequebook through
Internet Banking/Mobile Banking (VYOM App), WhatsApp Banking ATM, customer care
through OCRM.
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c. Through Doorstep Banking: Account holder in designated branches may opt for
doorstep banking services for delivering his/her requisition slip to branch. Refer circ
no.2199:2020-21 dated 08.09.2020.

2.16.2 Delivery of chequebooks: Requests for personalized chequebooks are received at

the branches. Before entering chequebook request of customer in Finacle, branches
should ensure/update correct & complete address of customer.
The cheque book request data is downloaded at Centralized Back Office, Mumbai and
sent to the designated security printers. The security printers dispatch the
chequebooks directly to the customers/Branches as per the option selected by
Customers/Branches while entering the request through CHQBOOK menu. On receipt
of cheque book at branches, branches have to physically count the chequebooks and
tally it with the dispatch details. If there is any discrepancy it should be brought to
the notice of CBO Mumbai on the mail id chequebook@unionBankofindia.com.
Branches can get information’s like dispatch date & tracking number in CHQBOOK
menu – I category shortly.

2.16.3 Loose Cheque: Loose Cheque may be used in branches for all cash payments up to
25000/- at the base branch only. A note "For payments up to Rs. 25000/- only" is
printed on Cheque leaves.

a. In absence of loose cheques for making payments in cash for more than Rs.25000/, and
whenever there is a requirement from customers to issue a loose cheque leaf for
payment of cash exceeding Rs.25000/-. Loose Cheque Books with 100 leaves with a
note on the top as “ONLY FOR CASH PAYMENTS AT BASE BRANCH” may be indented by
branches.
b. Branches to follow detailed guidelines for cash payment upto Rs.20,000/- without
entering serial number in Finacle as per I.C.No. 3004-2021 dated 17.01.2022 and for
cash payment above Rs.20,000/- and upto Rs.25,000/- as per I.C.No. 00351-2016
dated 22.01.2016.
c. Branches not to issue Loose cheques in Saving Bank accounts and Current accounts
where there are unused/outstanding cheques appearing in customer’s account.
d. The loose cheque leaf to be issued should be from a separate cheque book earmarked
by the Branch for this purpose. The entire chequebook so reserved for issuing the loose
cheque leaves should be branded with a rubber stamp reading as “Loose Cheque Leaf
Issued to Mr./Ms./Mrs./M/s……………on date……….. Not to be used for Clearing or other
transactions. Transaction more than Rs.50000/- is to be permitted only with
permission of Branch Head.”
e. The issue of loose cheque leaf and authorization thereof in the system should be done
by two different officials, at least one of them being an Officer. At least two officials
should be involved in entering and authorizing the transaction undertaken by use of

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loose cheque leaf, at least one of them being an Officer. Wherever feasible, the
Officer authorizing the issuance of the cheque leaves should be other than the Officer
passing the cheques.

S.N. Details of circular Date Content

1 IC:00351:206 22.01.2016 Loose Cheque for cash payment at
Base Branch
2 IC:01594:2019 21.06.2019 Issuance of Loose Cheque Book
/Leaves in Savings & Current Account
3 IC:3004-2021 17.01.2022 Loose Leaf Cheque- For cash
payments at Base Branch

2.16.4 Withdrawal form: Saving Bank account holder has an option to open an account with
chequebook as well as without chequebook. In case, account is opened without
chequebook facility, withdrawal in account may be allowed by way of withdrawal
form. Withdrawal form is to be provided to the account holder who has not availed
the chequebook facility. The account holder using withdrawal form should come in
person along with the passbook and under no circumstances; withdrawal through
third party should be permitted. Withdrawal of more than Rs.5000/- without
chequebook facility should be allowed through loose cheque. For detail, refer I.C.
No. 7621, dated 03.03.2007 Use of Withdrawal Forms.

S.N. Details of circular Date Content

1 IC:07621 03.03.2007 Use of Withdrawal form

2.17 Cheque Truncation System (CTS):

2.17.1 Features: Certain mandatory minimum security features for cheques cleared under
image based CTS clearing were introduced by the RBI effective from 01.12.2010.
These benchmark prescriptions are known as “CTS-2010 standard”. These include
provision of mandatory minimum security features on cheques like quality of paper,
watermark, and Banks’ logo in invisible ink, void pantograph etc., and
standardization of field placements on cheques, passing through CTS.

These prescriptions are intended to curtail cheque frauds on account of alteration

in various fields of cheques and to give protection to customers as well as the Bank

S.N. Details of circular Date Content

1 IC:09454 04.12.2012 CTS 2010 Standard Chequebooks
2 IC:9468 21.12.2012 CTS-Guidelines on CTS Operation
3 IC:00843-2017 04.05.2017 Threshold Limit for enquiring with the
customer regarding Cheques Rs.2 Lakh

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and above presented for payment
4 IC:00994-2017 10.10.2017 Standard Operating Procedures for
passing of cheques by the branches
and Service Branches
5 IC:1622-2019 18.07.2019 CTS CLEARING- Compliance of extant
guidelines

2.17.2 Properties of CTS – 2010 cheques can be easily recognized by:

a. Printer name / CTS – 2010· printed vertically near the perforation

b. An easily distinguishable shaded white column below the account number columns.
c. In the CBS environment, CTS-2010standard cheques are to be paid at par if presented
in clearing at any centre, even if the cheque leaves are not super-scribed with words
indicating payable at par at all branches of the Bank.
d. The new cheque standard “CTS 2010” with a set of minimum security features would
ensure uniformity across all cheque forms issued by Banks across the country and also
help presenting Banks while scrutinizing / recognizing cheques of Drawee Banks in an
image based processing scenario.
e. Reserve Bank of India has prescribed for implementation of the mandatory
verification of CTS instruments through Ultra Violet [UV] Lamp by the Presenting

f. Bank. The move is aimed at identification of fraudulently altered instruments

presented through CTS clearing, as the payment of instruments in CTS clearing is
based on the image of the instrument. In our Bank, it has been decided to subject all
instruments of Rs.50,000/- and above to UV lamp verification.
g. Hence, any CTS instrument of value of Rs.50,000/- and above should be compulsorily
verified through UV lamp to ascertain correctness and genuineness of the instrument,
before sending to the Service /Nodal Branch for scanning.
h. After verification through UV Lamp, the Branch should affix a stamp at the back of
instrument confirming the verification. The verification seal shall be as under:

“Verified Through UV Lamp, Union Bank of India, Branch”

i. A cheque received for collection should conform to CTS-2010 standards. It should be

ensured that it contains security features, such as “CTS India” watermark Union Bank
Water mark in Hindi and English, Void Pantograph, Bank’s Logo printed with ultra
violet ink, etc.
j. Signature/s and details on the cheque should be properly verified. In case of
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suspicion on the appearance of the image, presenting Bank should be contacted to
provide the original instrument for verifying its genuineness.
k. Cheque passing official should keep in mind that no material alteration is permitted
under CTS, even if such alteration has been authenticated by the drawer, exception
being date field.
l. If the passing Officer observes any unusual feature on a cheque like variation in font
size or writing style, he/she may refer to the account holder/ Branch for confirming
its genuineness.

S.N. Details of circular Date Content

1 IC:01052-2017 19.12.2017 Verification of cheques by Base branch
presented in clearing at various centres
to avoid frauds.

m. Features available in New Cheques (CTS):

S.N. New cheque (CTS)

1 A: Mandatory Security Features:
In addition to old cheque (pre-CTS) features

Size of the Cheque: 8” X 3.2/3”

Cheques leaves to be printed as per CTS-2010 standard as follows:

(1) Quality of Paper –Bank’s Watermark/along with CTS-INDIA Oval

watermark MICR Paper.

(2) VOID pantograph, hidden/embedded (At Printing Stage).

(3) Ultra Violet – (UV) Logo of Bank at 4 specified places on cheque (Visible
under UV lamp).

(4) Standardized Field placements of a cheque as per layout provided by

NPCI/BANK.

(5) All New cheque forms should carry printer name, Month, Year along with
printing “CTS – 2010” for establishing CTS-2010 compliance.

(6) Micro lettering at lines containing “UNIONBANKOFINDIA” & Account

number.

2 B:Optional/Extra security Features in cheque leaves:

(1) Different colour schemes for SB – PINK; CD/CA/CC/OD- BLUE.

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(2) Introduction of QR Code: contains Account holder’s name, Account

number, Cheque number & random number.

(3) Introduction of Reverse printing: Account number will be printed in

reverse printing.

(4) Introduction of Printing account number around UBI Logo:

3 C:Security Paper:
MICR-CTS Security Paper, 95 GSM with Bank’s water Mark with CTS-INDIA
oval mark (2010 standard)
4 D:Back Ground Printing on Cheques
Fugitive ink is used.
5 In addition to above, since Dec. 2017, Alpha Numeric Random Number
feature is introduced in cheques. It is printed below DD/MM/YYYY area.
Finacle system prompts for Random number if the value of the cheque is
Rs.2 Lakhs and above.

n. Branches should ensure not to accept Post Dated Cheques (PDC) / Equated Monthly
Installment (EMI) cheques (either in old format or new CTS-2010 format) in locations
where the facility of ECS/RECS (Debit) is available. Branches should make all efforts
to convert existing PDCs in such locations into ECS/RECS (Debit) by obtaining fresh
ECS mandates from the borrowers.

S.N Details of circular Date Content

1 IC:01824:2020 03.01.2020 Increasing Trends in Cheque related Frauds

2.17.3 Clearing Mechanism In India: Cheques represent a significant segment of payment

instruments in India. The Reserve Bank of India has been playing the role of the
catalyst in ensuring efficiency in clearance of cheques. The system of MICR cheque
clearing requires the cheques to be physically moved from place to place and the
time involved in their processing at various intermediate stages increases length of
clearing cycle of cheques.

The law was amended during year 2002 paving the way for the presentment of
electronic images instead of the physical instrument. With suitable amendments to
The Negotiable Instruments (NI) Act, 1881, The Information Technology(IT) Act, 2000
and The Bankers’ Book Evidence (BBE) Act, 1891, the legal framework was put in
place for the introduction of Cheque Truncation System (CTS) in India.

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Thus Cheque Truncation System involves the stoppage of the physical movement of
cheque and replacement of physical instrument by the image/s of instrument and the
corresponding data contained in MICR line.

RBI in terms of letter no. DEL.DPSS.No./01.03.003/2022-23 dated 22nd February 2023

had informed about the merger of present architecture of three regional grids
(South, North and West Grid) to single ‘National Grid’ under concept of "One Nation
One CTS Grid" in a phased manner. The merger of CTS Grids has been completed in
following phase wise manner:

i) Phase I – Merger of settlement for three grids: “Position of Bank across the
three Grids would be netted and a single settlement file for the three Grids
would be posted in eKuber”. Phase I is already implemented from March 01,
2023.

ii) Phase II – Merger of Northern and Southern Grids: Northern and Southern CTS
Grid merged w.e.f from July 01, 2023. (IC No. 04176-2023 dated 27.06.2023)

iii) Phase III – Merger of third Grid: Western Grid merged, and single National Grid
was created w.e.f. 13.10.2023. (IC No. 04389-2023 dated 12.10.2023)

Service Branch Chennai is designated CTS National/Nodal Grid center of Bank.

2.17.4 Inward clearing process: Cheques presented by presenting Banks in clearing house
are received as data file by Clearing House Interface and then presented to drawee
banks for inward clearing. Drawee Bank after confirming the clearance of proceeds
returns the data file to clearing house. Clearing House Interface further provides
return data files to presenting bank. Presenting Bank in turn debits respective
accounts after marking returns.

2.17.5 Outward Clearing Process: Customer submits the cheques in presenting Bank.
Presenting Bank after capturing the cheque data in CBS, transmits the data file (CXF
File) and image file (CIBF File) to Clearing House (GRID). At Grid, Clearing House
Interface of NPCI processes the data and exchanges the data with respective banks.
Clearing House Interface of NPCI generates the response (acceptance and rejection).
We have two models for outward clearing:

A. Legacy Model: System wherein outward cheques are sent through courier to
service branch for further processing at scanning centers.

B. Batch Transfer File (BTF) model: System wherein branches enter the data in
Finacle and subsequently scan and upload the cheques for outward clearing. In
this process, after scanning the cheques, it is sent to NPCI on same day and by
T+1 basis, customers get clearance of fund in their accounts.

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Standing Operating process (SOP) under BTF model:
S.N. Particulars
1 Outward Clearing zone is to be opened at the Branch (menu option
HMCLZOH). Clerical staff at Branch will enter the outward clearing
instruments in Finacle (Menu option – HOCTM). Then these entries are
verified by an officer at Branch.
2 File generation in Finacle: After completion of entry & verification in
Finacle, the outward clearing zone is to be suspended. Then the Finacle
file to be generated from Finacle through (Menu option - Query-96). This
file is to be generated in the scanning PC, so that the file is copied into
specified folder directly. The nomenclature of the file will be
BTF_BRANCHMICRCODE_Date.TXT.
3 After giving the correct login credentials in CTS solution, user clicks on
CAPTURE button. User need to select Branch, Business Date, Work Type
(BTF Flow – 3742) and scanner type.
4 Enter batch item count and batch amount. Then user starts the batch.
5 Cheques to be placed in scanner properly and scanning of cheques starts.
6 If any cheque is not scanned properly user has the discretion to REJECT or
RESCAN the cheque again.
7 After scanning of all the cheques the user need to click on SUBMIT. A
confirmation ID will be generated and displayed on the screen.
8 Now the status of the batch will be in REPAIR REJECT IN PROGRESS.
9 User need to check any items are present in ‘REPAIR REJECT’ (items will
come to Repair Reject when MICR line of the instrument is not properly
scanned).
10 User need to Repair the MICR field for the items present
11 After Repair is completed the batch will be in ‘REPAIR REJECT COMPLETE’
status.
12 User need to upload the file generated from CBS in CTS solution.
13 BTF verification should be done in Checker credentials.
14 In this process, Checker will do matching of entries and scanned images.

15 If any items are unmatched user need to rectify item or delete the item in
CTS solution.
16 Movement of scanned data to CHI needs to be completed before 7.30 p.m
every day.
17 On the presenting day, UBI Service Centre/Grid, has to pass on the
credits to respective scanning Branches. Settlement report, rejection
report and IQA failure reports are to be sent to respective Branches from
UBI Service Centre/Grid (if there is no provision to generate in V-soft
application).

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18 Branches should tally their outward clearing presentation on the previous
day with the settlement report and represent instruments that are
rejected at CHI level.
19 Return file will be generated from E desk portal of V-soft. After completion
of return session at 2.30pm, V-soft has to upload Return file in CTS
application.
20 Branches have to generate Return report in V-soft application, and to
mark returns. If there is any extension granted by RBI, Branches will hold
the instruments of the particular Bank for the day, by marking such
instruments through MARKPEND menu. UBI Service Branch/Grid has to
debit the Branch account for return amount. Branches have to tally
balance amount and to release the credits.

2.17.6 Role of presenting and Collecting Bank:

a. As the payment processing is done on the basis of images under CTS, the onus of due
diligence shifts to the presenting Bank, as provided under explanation II to section
131 of NI Act. Member Banks have to ensure compliance to “Know Your Customer
(KYC)” norms in letter and spirit.
b. The Bank should observe all precautions which a prudent Banker does under normal
circumstances, e.g., to check the apparent tenor of the instrument, physical feel of
the instrument, any tampering visible to the naked eye with reasonable care etc.
For enhanced attention, based on exceptions, Bank may deploy suitable risk
management techniques such as scrutiny of high value transactions; limit based
checking by officials, alerts in new accounts, etc.
c. The presenting Bank takes full responsibility for collecting on behalf of the intended
payee and exercises due diligence as per the conditions laid down in amended
Negotiable Instruments Act.

2.17.7 Role of Paying Bank/Drawee Bank: As per Section 6 of NI Act, a cheque is a bill of
exchange drawn on a specified Banker and not expressed to be payable otherwise
than on demand and it includes the electronic image of a truncated cheque and a
cheque in the electronic form.
Notwithstanding anything contained in section 6, where an electronic image of a
truncated cheque is presented for payment, the drawee bank is entitled to demand
any further information regarding the truncated cheque from the bank holding the
truncated cheque in case of any reasonable suspicion about the genuineness of the
apparent tenor of instrument, and if the suspicion is that of any fraud, forgery,
tampering or destruction of the instrument, it is entitled to further demand the
presentment of the truncated cheque itself for verification: Provided that the
truncated cheque so demanded by the Drawee Bank shall be retained by it, if the
payment is made accordingly.
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2.17.8 Role of Regional Offices: Regional Offices to ensure that Uniform Regulations and
Rules for Banker’s Clearing Houses issued by Reserve Bank of India, Department of
Payment & Settlement System on 17.05.2012 are complied with. Regional Office has
to prepare exigency plans for smooth running of the Clearing House. Refer IC No.9468
dated 24.12.2012.

2.17.9 Positive Pay System: RBI vide letter no.RBI:2020-21:41 DPSS.CO.RPPD. No.309:04.07.
005:2020-21 dated 25.09.2020 has directed all the Banks to implement Positive Pay
System from 01.01.2021. The concept of Positive Pay involves a process of validating
key details of large value cheques. Under this process, the issuer of the cheque
submits electronically through channels like SMS, Mobile App, Internet Banking, ATM
etc. certain minimum details of that cheque (like date, name of the
beneficiary/payee, amount etc.) to the Drawee Bank, details of which are cross
checked with the cheque presented under CTS. Any discrepancy is flagged by CTS to
the Drawee Bank and presenting Bank, who would take redressal measures.

The Positive Pay System has been implemented in our bank from 01.01.2021. In the
present set up, the customer can avail the facility through Internet Banking, through
Finacle/CBS by visiting Branch, SMS banking (IC no. 02774-2021 dated 16.09.2021),
Internet Banking (IC no. 05925-2022 dated 30.07.2022), VYOM, UVCONN, and
Corporate Website (IC no. 3528-2022 dated 30.08.2022 Detailed information/SOP is
mentioned in IC 5736-2022 dated 15.01.2022 and Maiden Policy on Positive Pay
System issued vide circular no. IC:02374:2021 dated 06.01.2021

The Positive Pay System has been made compulsory for cheques of Rs. 2.00 lakh and
above w.e.f from 01.01.2023 (IC no. 03762-2022 dated 23.12.2022).

CCC Menu is developed for taking confirmation from the customer having issued the
cheque in case of non-home branches. System will auto fetch the details from CCC
Menu to HTM.

3. Other parts of Operations:

3.1. Finacle User id and Password, Role, Biometric Access, Maker Checker: User
IDs/passwords to the staff members of the Bank are issued which facilitates logging
into the CBS/Finacle through Biometric access and undertake transactions as per
access rights and defined roles. Every transaction is supported by maker checker
concept.

i. For non-availability of Finacle access, problem in biometric authentication etc,

Branches may contact ZCC for resolution.
ii. HR department of RO may be contacted for enabling /resetting/upgradation of
Finacle password and transfer of Finacle user from one SOL to other SOL.

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iii. For any new user creation in Finacle staff members can approach data centre at DIT
in the prescribed format with due approval from competent authority.
iv. Strict confidentiality is to be maintained and passwords should not be disclosed to
others.
v. Information security/cyber security guidelines of the Bank are to be followed in
maintaining confidentiality / integrity and availability of data.

3.2. Cash withdrawal: Customer can withdraw cash above Rs.25000/- at Branch counter
through Cheque. While, for cash withdrawal up to Rs.25000/-, customer should be
advised to use ATMs.

3.2.1. Payment/withdrawal at non-base Branch by Account Holder: Customer can

withdraw cash up to Rs.1.00 Lac at non-base Branch. For proper identification of the
drawer, Branches may ask for any one document of identity proof from the drawer as
required for opening of account, verify the same from original and keep a Xerox copy
with the paid instrument.

Payment/withdrawal at non-base Branch by third parties: Cash withdrawal can be

allowed to third parties at non-base Branch subject to the limit of

a. Rs.10,000/- per transaction in Savings Bank Account

b. Rs. 25,000/-per transaction in Current/Overdraft Account

3.3. Cash deposit: Wherever Cash Deposit Machines are provided, customer should be
encouraged to use the same. Customer can deposit cash at Branch through Pay-in-
Slip completely filled-in with the 15-digit account number, account holder’s name,
denomination of notes tendered, amount both in words and figures. The Pay-in-Slip
should be duly signed by tenderer/depositor of the cash in full with name, address
and contact number written on the pay-in-slip.
Entry of cash remitters Mobile number in Cash Receipt entry (HTM) to be done by the
branches in order to send an SMS to cash remitter as e-cash receipt. Invalid mobile
numbers are restricted.

3.4. Demand Draft/Pay Order: The Common Demand Draft / Pay Order which is known as
Demand Draft, is payable anywhere in India and has no specific Drawee Branch. The
notation of “Payable at par at all branches in India” is printed on the top of the
Demand Draft. However, as a security measure the Demand Draft has a space for

Drawee centre. At the time of printing the Draft, it will print name of the centre as
requested by the customer. This is only to ensure that caution is exercised while
paying the Demand Draft at a centre other than the Drawee centre.

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a. Demand Drafts of Rs.20,000/- and above should be issued with “Account Payee
crossing” only so that such instruments are credited to payee’s account by
transfer/clearing and not paid in cash.
b. Demand Drafts of Rs.50,000/- and above should be issued only to the debit of
customer’s account or against cheques or other instruments tendered by the
customer and should in no case be issued against cash.
c. It would also be deemed as a violation of the RBI directives if Demand Drafts
aggregating to Rs.50,000/- & above are issued on the same day favoring a single
beneficiary in cash though the amount of each such instrument is less than
Rs.50,000/-

3.5. Standing Instructions: Customer can submit instructions in writing regarding transfer
of funds or regular payments from one account to other account etc.

3.6. Stop payment:

3.6.1. Stop payment of Cheques: The Branch will accept Stop Payment instructions from
the depositors in respect of cheques issued by them and which have not been paid.
Charges, as specified, should be recovered.

Branches should ensure that the correct cheque serial number is entered in Finacle
(Menu HSPP) whenever the stop payment instructions are received. Customers may
give only the 6 digit serial number as appearing in the Cheque leaf, but care should
be taken to enter 8 digits (for all new cheques issued as per new logic) or 6 digits (for
all old cheque series) after verifying cheque-book issued details in Finacle by using
menu HCHBM for getting details of cheque-books issued in account.

3.6.2. Stop Payment of Drafts/Pay Orders: The applicant or the issuing Branch/Bank has no
authority to stop payment of a Draft. The applicant may be advised to bring a Court
order on receipt of which the branch will stop payment of the Draft. Payment of
Demand Draft can be stopped in case of misplaced/lost DD against the indemnity
bond. DD if surrendered by the purchaser can even be cancelled at the branch, and
payment of DD can be made by transfer of cancelled proceeds to the credit of
purchaser. In case of cash DDs, on proper identification of purchaser, Cash Payment
can also be made over the counter subject to deduction of Bank charges on
cancellation.

3.7. Fund Remittances: In Banking Channel, fund can be transferred from one place to
another in the following ways:

a. Inter-Branch transfer
b. Demand Draft (DD) /Cheque
c. Payment Order (PO)

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d. Electronic Fund Transfer (NEFT, RTGS, IMPS etc.)

3.8. FD/RD account opening: Fixed Deposit Accounts can be opened after receipt of cash
or funds are credited to our Bank’s account (Account transfer ). The Bank before
opening of any deposit account should carry out Due Diligence as required under
‘Know Your Customer” KYC Guidelines issued by RBI on Anti Money Laundering rules
and regulations.

3.9. Back Dated Account Opening: Back Dated Account opening is handled by Deposit
Mobilisation Department. Please refer circular no.03182-2022 dated 31.03.2022 for
detailed information on the subject.

3.10. Tax Deduction at Source (TDS): Remittance of TDS & filling of TDS returns is
completely centralized at Taxation cell, Finance & Accounts Department, CO. except
in the case of Madan Mahal Branch, where State Govt. Pension is being paid manually
by the respective branch/office and TDS remittance & TDS return filing is also done
by the respective branch/office. For the purpose of deduction of TDS on the total
Term Deposit Interest credit at Bank Level, the Bank considers the UCIC (Unique
Customer Identification Code) to reckon the total Interest Credits in the Term
Deposit Accounts of a Customer in all the branches of the Bank.

a. The customers whose valid PAN is on our records, the TDS on interest credit of Rs.
40000/ and above is presently at 10%. The customers whose valid PAN is not on our
records, the TDS on interest credit of Rs.40000/ and above is presently at 20%(as
per IC no.5512-2021 dated 08.04.2021).
b. The Customers who are Senior Citizen whose valid PAN is on our records, the TDS
on interest credit of Rs.50000/- and above is presently at 10% and customers whose
valid PAN is not on our records, the TDS on interest credit of Rs.50000/- and above
is presently at 20%(as per IC no.5512-2021 dated 08.04.2021).
c. In case of Non-Resident Ordinary (NRO)deposits (all types), TDS @ 30% plus
applicable surcharge and/or cess if any, is to be deducted at source on the amount
of interest paid / credited to NRO deposits.

S.N. Details of circular/letter Date Content

1 IC: 06836-2018 03.07.2018 NRO Rupee Account
2 E-Manual (171716) 23.07.2020 Non-Resident Ordinary (NRO)

d. Due dates for remittance of TDS/TCS is as follows:

TDS/TCS Deducted during the Months TDS remittance due TCS remittance due
of date date
th th
April to February in a Financial Year 7 of Succeeding 7 of Succeeding
month month
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e. in a Financial Year
March 30th April of 7th April of
f. P succeeding Financial succeeding Financial
l Year Year

PleaPlease note the due dates specified above are only for remittance of
TDS. However, TDS has to be deducted and credited to the respective TDS accounts
by the end of the month.

e. The due dates for filing quarterly TDS/TCS returns are as follows:

Quarter Period covered Due date for Due date for filing
filing TDS Return TCS Return
1st Quarter April to June 31st July 15th July
2nd Quarter July to September 31st October 15th October
3rd Quarter October to December 31st January 15th January
4th Quarter January to March 31st May 15th May

f. Please be guided by all the latest circulars/guidelines issued by the concerned

vertical, Taxation Cell, Finance and Accounts some of which are as follows:

S.N. Details of circular Date Content

1 IC: 0724:2017 02.01.2017 SARAL TDS – Filing of e-TDS Return
2 IC:1627:2019 23.07.2019 SARAL TDS – Centralisation of all TDS
activities
3 IC:05297:2020 14.05.2020 Tax deduction at Source
4 IC:3352:2022 15.06.2022 Downloading Form 16/16A from Saral
TDS package for the FY 2021-22
5 IC:3382:2022 28.06.2022 Clarification regarding issues in form
16/16A/26AS
6 IC:3385:2022 29.06.2022 Section 194R-TDS on benefit or
perquisite in respect of business or
profession
7 IC:5613:2021 07.08.2021 TAX DEDUCTION AT SOURCE (TDS)/TAX
COLLECTION AT SOURCE (TCS) –
CHANGES MADE IN FINANCE ACT 2021
8 IC:5917:2022-23 18.07.2022 Clarification to Instruction Circular
Number 03385-2022 dated 29/06/2022
introduced Section 194R w.e.f.
01/07/22
9 IC:3231:2022 16.04.2022 SOP for resolution of TDS & GST issues
raised by branches/offices
10 IC:3307:2022 23.05.2022 CBDT notification No. 53/2022 –
Restrictions on certain banking
transactions where PAN/Aadhar is not

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quoted by the customer
11 IC:03275:2022 02.05.2022 TDSTM Menu introduced in Finacle CBS
for manual Income Tax TDS deducted
by the branches
12 IC:03472-2022 02.08.20233 GSTTDS Menu and process to be
followed
13 IC:06005-2022 25.10.2022 “TAXCPC” – a new TDS application
software
14 IC:03713-2022 17.11.2022 Standard Operating Procedures (SOP)
for refund of TDS to customers
15 IC:03844-2023 06.02.2023 Reimbursement of TDS under GST
deducted on income / receipts
received by the branches / offices
16 IC:06219-2023 21.03.2023 Recovery of TDS shortfall - TDSREC
menu in CBS
17 IC:06259-2023 19.04.2023 TAX Deducted at Source (TDS) under
Income Tax Act 1961 - Finance Act
2023
18 IC:04291-2023 24.08.2023 Uploading of invoices for the
unreconciled transactions made
through GSTTDS for FY 2022-23 &
2023-24
19 IC:04316-2023 16.09.2023 Introduction of Menu for Booking of
TDS on Income or Receipts- TDSCLAIM
20 IC:06469-2023 02.11.2023 Clarification on Tax Deducted at
Source (TDS) & Tax Collection at
Source (TCS) at higher rate - on
account of Inoperative Pan

3.11. Safe Deposit Vault (SDV) Lockers: Safe deposit locker facility is one of the services
provided by the Bank. Bank provides specially designed lockers of different sizes,
purchased from reputed manufacturer, kept at specially built strong rooms for
keeping the valuables of locker holder in the safe deposit vault/ lockers for the
safety to the belongings against theft/burglary. The relationship between Bank and
the locker holder is that of a licensor and licensee. Refer policy on Safe Deposit
Vault (SDV)/Lockers for reference on locker operation.

3.12. Safe keeping of Exam papers: At various places, school authorities from
CBSE/ICSE/State Board request Branches to keep Exam papers in safe custody.
Branches should follow strict norms/guidelines for safe keeping of Exam papers.

a. Bank comes out with separate guidelines as per the directions from the MoF/CBSE
time to time for reference of the field. The latest guidelines issued with SOP are:

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S.N. Details of circular Date Content
1 IC:02613:2021 17.05.21 Guidelines for safekeeping of Question
Papers/Materials of various Examination
Boards

3.13. NEFT and RTGS:

3.13.1. National Electronic Fund Transfer (NEFT): NEFT system is a nationwide funds
transfer system to facilitate transfer of funds from any Bank Branch to any other
Bank Branch and this facility is implemented by Reserve Bank of India (Department of
Payment &Settlement Systems). Presently, this facility is available 24x7 to customers
from various channels such as Branch, Internet Banking and Mobile Banking. Under
this system, the settlement of fund takes places in batches. A customer can send the
fund irrespective of amount using NEFT.

3.13.2. Real Time Gross Settlement (RTGS): Real Time Gross Settlement system is the
fastest possible money transfer system where transfer of money takes place from one
Bank Branch to another Bank Branch on “real time” and “gross” basis. Gross
settlement means the transaction is settled on one to one basis without bunching
with any other transactions. For each RTGS transaction, the system generates an
alphanumeric code UTR number, UTR can be used for tracking any RTGS transaction.
Presently, this facility is available 24x7 to customers from various channels such as
Branch and Internet Banking. A customer can send the fund of Rs.2.00 lacs and above
using RTGS.

Legal Entity Identifier (LEI) for large value transactions of Rs.50 Crore and above has
been introduced in RTGS & NEFT .Please refer circular no. 02562-2021 dated
02.04.2021 and circular no. 03406-2022 dated 05.07.2022 for detailed information.

3.13.3. Timely Reversal of entry due to returns: As per IC no. 9496 dated 01.02.2013 on
RTGS operations, Branches must ensure immediate reversal of RTGS returns. The
return amount is credited in account 198/50000. This must be immediately reversed
and credited to the customer’s account from which the RTGS was sent. Ref IC
No.3723-2022-23 dated 24.11.2022.

3.14. Account statement and passbook:

3.14.1. Account statement (Current accounts):

a. A Statement of Account will be provided by the Bank to Current Deposit Account

holders periodically as per terms and conditions of opening of account.

b. As a part of centralization process the Bank has taken an initiative for e-mailing the
comprehensive statement called as Customer 360-degree statement of account in
PDF format with password protection to customers having registered e-mail ID for all
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Branches. Other customers can get statement from their respective Branches in
physical form (Refer circular no. 2811-2021 dated 28.09.2021).
c. Based on customers’ option and number of transactions that justify issuance of
statements at more frequent intervals, the same may be provided on
weekly/fortnightly basis. Frequency requested by the customer should be properly
entered by the Branches in Account Master.
d. Branches shall keep addresses and e-mail IDs updated in the CBS System to ensure
proper and timely delivery of statements to customers.

3.14.2. Account statement/Passbook (SB accounts):

a. Branch should encourage the customer to avail the facility of Mobile Banking (VYOM)
for generation of account statement and passbook (m-Passbook).
b. As a part of centralization process the Bank has taken an initiative for e-mailing the
comprehensive statement called as Customer 360 degree statement of account in
PDF format with password protection to customers having registered e-mail ID for all
Branches. Other customers who have not registered their e-mail ID can get statement
from their respective Branches in physical form(Refer circular no. 2811-2021 dated
28.09.2021).
c. Branches should invariably offer passbook facility to all Savings Bank account holders
and in case customer requests for the statement of account, branches should issue
monthly statement of accounts.
d. The cost of providing such Passbook or Statements should not be charged to the
customer. In case, customer requests for duplicate Passbook or statement, then
charges should be recovered as applicable from time to time (Refer circular on
Revision in Service charges vide IC. No. 03880-2023 dated 28.02.2023).
e. Pass Book should be updated on regular basis through system.
f. Precautions to be taken while handling passbook: Negligence in taking adequate
care in the custody of Savings Bank passbooks facilitates fraudulent withdrawals from
the relative accounts. Following precautions in this regard to be taken by the
Branches:

i. Branches should accept the passbooks and return them against tokens.
ii. Passbooks remaining with Branches should be held in the custody of responsible
officers.
iii. Passbooks in the Branch should be held under lock & key.

g. Branches should exercise due caution while handling even routine transactions like
issuing statement of accounts, intimating realization of bills, cheques etc., to ensure
that they directly reach only the customer or his authorized representatives and give

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no scope for such information to remain open or become accessible to other
customers/persons not authorized/entitled to it.
To provide a detailed Statement to customers comprising of already available details
in conventional account statement as well as other facilities availed by them from
our Bank, a new option for Combined Account Statement has been introduced in
PSPHTML menu in Finacle. This statement gives an insight to the field functionaries
about the existing business relationships with the customer.

S.N. Details of circular Date Content

1 IC:2714:2021-22 26.07.21 Combined Account Statement facility in
Finacle using PSPHTML Menu

3.15. Checklist before Day – End Process:

• If signature scanning & tagging if not done in T+5 days, CSOLOP will be held for the
day. (for details refer IC No. 04239-2023 dated 27.07.2023 - Restriction on CSOLOP
if the signature is not captured in Accounts.)
• HTV menu restricted for regular branches. Operations vertical may refer to data
centre for the waiver on case to case basis only. (for details refer IC No. 03939-
2023 dated 24.03.2023 - Restriction of HTV menu access for Regular Branches)

• Branch to generate report for tallying of physical vouchers with CBS data using
menu “QUERYNEW” option 140 (for details please refer IC 04303-2023 dated
04.09.2023 - Tallying of physical vouchers with CBS Data.)
• Branches to generate mandatory report on daily basis using menu “MNDTRPT” in
live server.
• Branches to check the “LKOPS” menu on daily basis and enter exit timing during
exit of the licensee post SDV locker operation. (for details refer IC No. 04188-2023
dated 01.07.2023 - Check-in, Check-out entries should be made in LKOPS menu
while allowing operations of Safe Deposit Vault / Lockers & updation of licensee’s
mobile numbers in CIF)
• Entry in DWBP menu for cash transaction is mandatory before proceeding for the
CSOLOP.

3.16. Cash Management Services (CMS):

a. Corporate have collection and payment requirements, which are to be met in

shortest time at lowest cost with complete MIS. Bank under Cash Management
Services, provides the facility of collection of cheques/instruments covering various
centres and crediting such collection proceeds to a pre-designated account/s on an
assured basis as per arrangement, to Corporate and other Business Establishments. At
the same time, Bank also provides the complete MIS to the Corporate Customer.

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b. With increased technology adoption by Govt. Departments &Corporate and digital
push there has been sharp increase in usage of electronic payments by Corporate and
Departments. CMS takes care of such bulk payment requirements of the corporate
customers.
c. With the advent of National Payment Corporation of India (NPCI) products & services,
traditional collection and payment services have increasingly-converged to paperless
activities. All member Banks are mandated to participate in NPCI clearing activities
and also shall avail their products/services. CMS caters to National Automated
Clearing House (NACH) clearing services & Mandate Management System (MMS).
d. CMS Products are classified as below:

S.N. Type of CMS Product

Products
1. Collection a. Cheque Collection- LCC / UCC
Products b. Cash Collection Service
c. Virtual Account Mode - NEFT/RTGS/IMPS
d. Mandate Based Collection - Direct Debit & NACH
e. E-mandate as sponsor Bank
f. Payment Gateway - Debit Card/Credit Card/Net
Banking
g. Bharat Bill Payment Services as BBPOU
h. Sweep Facility (ABB)
i. Unified Fee Collection Services (UFCS)
2. Payment a. Bulk Payment - Transfers/NEFT/RTGS/ IMPS/NACH
Products b. DD Drawings Arrangement
c. Correspondent Bank DD Drawing arrangement
d. Bulk Cheque Writing services
3. NPCI a. ACH Credit transactions as Destination Bank
clearing b. ACH Debit transactions as Destination Bank
activities c. ACH Credit transactions as Sponsor Bank
and other d. ACH Debit transactions as Sponsor Bank
products & e. Mandate Submission as a Sponsor Bank
services. f. Mandate Verifications as a Destination Bank
g. Other NPCI schemes viz. PMSYM (Mandates without
Images), Legacy Mandates, E-mandates
h. Automated Invoice Financing:
➢ Dealer Finance
➢ Vendor Financing

e. Detailed guidelines covering various aspects related to Cash Management Services,

NACH, MMS and their operations are mentioned in following circular.

S.N. Details of circular Date Content

1 IC:00004:2021-22 28.10.2021 Guidelines on processing of

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cash/cheques through CMSTM menu
1 IC:02027:2020 13.04.2020 Detailed guidelines on CMS, NACH, MMS
and related products

f. Please refer “Collection and Payment Services (CAPS) Policy 2022-23” 3615:2022
dated 01.10.2022 issued by Transaction Banking Dept. under Large Corporate
Vertical.

3.17. Efficient Cash Management at Branches: Efficient Cash Management is one of the
effective tools to maximize the profitability at field level. It is important to regulate
the daily cash on hand in such a way that it is always at the minimum requirement
level consistent with safety, as retention of excess heavy cash would result in loss of
interest to the bank. Many Branches fail to manage the cash in an efficient manner
and end up with large amount of cash in their safes. Branches should ensure
minimum cash holding by remitting surplus cash to the needytransaction Branches
/Currency Chest. Branch Officials / Field functionaries should always remember the
following important aspects while managing cash.
a. As per IC 03365-2022 dated 20.06.2022, the Cash Retention Limit (CRL) at branches is
fixed by the Regional Office based on the benchmark Cash Deposit Ratio (CDR) set at
0.20% of total Deposits, excluding bulk deposits (deposits of Rs 2.00 crore and above
are bulk deposits). The Regional Heads are permitted to allocate & reallocate the
CRL to their branches, within the Regions’ CRL.
b. Operations Vertical – Currency Management Cell is monitoring the daily cash holding
positions of branches and issues necessary guidelines on efficient cash management
to field level as and when required.
c. Branches should always strive to maintain the cash at minimum level irrespective of
the permitted retention limit. Branches shall identify the pattern of deposits and
withdrawals and accordingly, plan strategy for retaining / remitting the excess cash.
Whenever, required Branches should contact the customers who deposits or
withdraws bulk cash to have minimum cash, this regulates the daily cash on hand in
such a way that it is always the minimum requirement consistent with safety.
d. SMS are sent to Branch Head on exceeding 120% of CRL. Regional head, Dy.Zonal
Head and Zonal Head if the cash holding of any branch is in excess of % times of their
Retention limit.
e. Branches shall deposit excess cash, if any into Currency Chest / Pooling Branch /
nearest Other Bank Branch as the case may be, on daily basis. Large volume of cash
from branches should preferably be moved into Currency Chests as the cash held at
Currency Chest belongs to RBI.
f. Based on the availability of cash vans, our Bank Currency Chest will arrange to
collect the excess cash from branches. Cash Vans are being monitored by SSD-
Security Division, Central Office, Mumbai as per IC 0086-2023 dated 18.03.2023.
g. Operations Dept. at Regional Offices must monitor Cash Van Movement for optimum
utilization.
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h. In case of non-availability of cash van services, Branches should remit the excess cash
using permitted transport mode and as per the guidelines furnished in IC 2435-2021
dated 01.03.2021.
i. Regions which do not have Currency Chest in their Region, shall link/map their
branches to our nearest Currency Chest or with the Other Bank Currency Chest under
RBI’s Chest linkage scheme. Alternately, should explore possibilities of setting-up
new Currency Chest in their Region. In such Regions, “Pooling Branches” may be
identified for collecting cash from surrounding branches for onward remittance to
currency chest.
j. Branches should understand that there is penal provision under MFTP policy, on
breaching Cash Retention Limits at Branches. Excess cash holding attracts 3.35% p.a.
interest which will be reduced from the operating profit of the respective branches
through transfer price mechanism.
k. Bank is also in the process of introducing “Efficient Cash Management” as KRAs of
field functionaries and may allot appropriate marks in the appraisals of officials
entrusted with cash management at all levels, especially the Dy. Branch Heads /
Branch Heads and RH / Dy. RH.
l. “Efficient Cash Management” requires proper co-ordination between Regional Office,
Currency Chests and Branches. Field functionaries shall always endeavor for proper
cash management and increase profitability of the Bank.

m. Further reference may be made to following circulars:

S.N. Details of circular Date Content

/ e-manual
1 UBINET→ E-manual → Link for e-manual:
03 Cash Management
07 Currency Chest Cash & Cash Management

2 IC: 03832-2023 03.02.2023 Cash Management at branches

3 IC:6310-2023 23.05.2023 Maintaining cash within cash retention
limits
4 IC:3848-2023 09.02.2023 SMS for monitoring excess cash holding
at branches

3.17.1 Handling of Cash Key at Branch, ATM and Currency Chest:

I) At Branch: Custody of Cash Key - Joint Custody:
a. Safety of cash is dual responsibility of the joint custodians.

b. Wherever possible Joint Custody of Cash should be altered every month.

c. Before passing over responsibility at the end of the month Branch Head/ DY Branch

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Head/ Officer should undertake detailed checking of entire cash and record it in Cash
Balance Book.
d. Cash should be under dual control at all times and in no case both the keys should be
held by one person.
e. If one of the joint custodians happens to be away from the branch for any period
during Banking hour’s alternative arrangement for continued dual control of cash
should be made.
f. As far as possible, the Officer-in-Charge of Cash Department/ Head Cashier should
not be away from the Branch during the Banking hours.
g. The details of circular issued in this regard is as under:

S.N. Circular Date Content

1 IC:7543:2006 30.11.2006 Detailed safeguards to be observed while
handling cash at branch level
2 IC:1637:2019 29.07.2019 Cash Management
3 IC:2464:2021 05.03.2021 Standard Operating Procedure (SOP) for
Currency Chests (Hand-book)
4 IC:3333:2022 04.06.2022 ATM policy 2022-23
5 IC:02761:2021 14.09.2021 1) Standard Operating Procedure (SOP) for
handling of Cash Remittance with Currency
Chest. 2) Accounting of Expenses by
Currency Chests.
6 IC:3551:2022 09.09.2022 Cash Management & Verification at
Branches / Currency Chests / ATMs
7 IC:03832-2023 03.02.2023 Cash Management at Branches/Offices
8 IC:04373:2023 04.10.2023 Cash Management at Branches. Roles &
Responsibilities of Branch and Regional
Office. REITERATION OF GUIDELINES

II) At ATM- Cash Replenishment:

a. ATM cash Replenishment is done by Bank staff at ATM installed at onsite locations
and offsite locations cash will be replenished by outsourcing agency i.e. vendor who
is empanelled for own ATMs under Capex Model and by respective vendors under
Opex Model.
b. Custodian of ATM/CRM has to do admin job mandatorily at time of loading of cash.

c. The amount of cash to be deposited in ATM should be as per the limit fixed for each
ATM.
d. RBI through its circular No RBI/2017-18/162 dated April 12, 2018, had advised
implementation of Cassettes Swap method for cash Replenishment in ATMs. The
details of circular issued in this regard is as under

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S.N. Circular Date Content
1 IC: 3111-2022 09.03.2022 Implementation of cassettes swap method
of cash replenishment in ATMs.
2 IC:4423:2023 29.07.2023 Implementation of cassettes swap method
of cash replenishment in onsite ATMs

III) At Chest: The cash in the Currency Chest should always be kept in separate Bins and
the bins should be properly numbered and coloured denomination wise, quality/type
wise for easy identification. FIFO principle should be followed. Sorting, staking,
packing, bundling and wrapping of Notes should be as per procedure strictly. The
Details of circulars are as under:

S.N Details of circular Date Content

1 IC:PBOD:CCD:01491- 11.03.2019 Storage of notes and coins in
2019 currency chest
2 IC:2464:2021 05.03.2021 Standard Operating Procedure (SOP)
for Currency Chests (Handbook)
3 IC:04132-2023 02.06.2023 Internal Control Systems for Banks
maintaining Currency Chest

IV) Handling of keys at Branch, ATM and Currency Chest:

IV. a) At Branch: Cash Keys:

a. Cash keys should be in joint custody of Branch Head/ DY Branch Head/ Officer and
the Head Cashier/ Officer-in-charge.
b. Cash safe keys should not be kept in branch premises overnight and should be carried
by the joint custodians.
c. Cash should be under dual control at all times and in no case both the keys should
held by one person.
d. Change of custody of cash safe key will be recorded in the Key Register against which
both the officials handing over/ taking over charge will put their signatures.
e. Set of keys in regular use should be exchanged with the duplicate sets once in two
years. This prevents any one set of keys being worn out.

IV. b) At Branch: Duplicate Set of Keys:

a. Duplicate set of cash safe keys should be deposited for safe custody either with our
nearest branch or State Bank of India / other Bank.
b. Keys will be kept in a sealed cover / box.

c. The same should be kept in joint Names of the Branch Head /DY Branch Head and
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Head Cashier
d. The sealed cover/box of duplicate of both sets of keys will be deliverable to any

e. Safe custody receipt obtained for the deposit of cash keys should be held on record
and the same MUST NOT be kept in cash safe

IV. c) At Branch: Procedure for deposit of the duplicate set of keys:

a. Covering letter addressed to the Branch Manager, Union Bank of India or SBI or any
other specified Bank should be prepared mentioning key numbers and number of keys
that are being deposited for safe custody.
b. The letter must contain specimen signatures of Head Cashier/ Officer in charge of
Cash Department and Branch Head / Dy Branch Head
c. The letter should be prepared in Triplicate.

d. First and second copy should be taken by the Head Cashier or Dy Branch Head who is
going to the Branch / Bank for depositing the keys.
e. After depositing of the sealed cover/box containing duplicate set of keys and
acknowledgement from a responsible/authorized official of the branch/Bank is to be
obtained in the duplicate copy of the letter.
f. Safe Custody Receipt also to be obtained.
g. Safe Custody Receipt will be kept under lock and key with Branch Head outside
strong room.

S.N. Details of circular Date Content

1 IC:03256:2022 26.04.2022 Handling of Cash and Joint
Custody& Handling of Safe Keys
at Branch - Reiteration of
Guidelines
2 IC:03145:2022 24.03.2022 Dual Custody and Safe Keeping –
Reiteration of Guidelines
3 IC:1574:2019 27.05.2019 Dual Custody and Safe keeping -
Reiteration of Guidelines
4 IC:7426:2006 17.07.2006 Safe custody of branch keys
5 IC:8751:2010 01.09.2010 Safe custody of branch keys
Internal Control Systems for
6 IC:04132:2023 02.06.2023
Banks maintaining Currency Chest

V) At ATMs - ATM/CRM Keys:

a. Cash handling at ATMs/CRMs should be done by two identified custodians jointly.

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b. The combination lock should also be opened jointly by these custodians by using the
secret code of the combination lock.
c. Each Custodian will have 4 or 6 digits of the combination lock. While opening the
lock, one custodian will enter the 4 or 6 digits of first half of the code and the other
half consisting of 4 or 6 digits is entered by another custodian using his code.
d. ATM/CRM chest opens only when both the custodians use their respective parts of the
combination key. Each custodian should maintain his own 4- or 6-digit key
confidential and should not be divulged to anybody else.
e. Each identified custodian should handover his part of combination code in a sealed
(duly signed) cover to the Branch Manager to be kept in safe custody. The delivery of
sealed cover should be recorded in the “ATM/CRM safe Key Management Register”
and the envelopes should be kept with the register in safe custody.
f. In the absence of any custodian on account of leave or for any other reason, the
sealed cover containing his part of key should be handed over to another custodian
who is required to handle the ATM/CRM against proper recording and
acknowledgement.
g. Code for the combination lock should be changed once in six months compulsorily
even though the same custodians are operating the ATM/CRM.
h. Whenever a Custodian is transferred from the branch, another Custodian who is
taking charge should invariably change the code. Under no circumstances the code
used by the previous custodian should continue to be used. For Details please refer
following circular.

S.N. Details of circular Date Content

1 IC:3907:2023 14.03.2023 ATM Policy 2023-24

VI)At Currency Chest: Cash Safe Keys of Currency Chest:

a. The original key (keys in use) of emergency door of the currency chest strong room
should be held in safe custody in the cash safe of Base branch in a separate sealed
envelope.
b. The duplicate set (keys not in use) should be kept in separate envelope along with
the set of keys kept in another branch. It should be handed over to the authorised
official of nearby branch of our Bank. Currency chest should obtain an approval from
RO for deciding nearby branch of Bank.
c. The duplicate keys should be removed from the safe custody at the end of every
second year, preferably at the time of inspection.
d. Dual control on operations: The keys of Currency Chest Strong Room Door, Grill
Gate, Vaults, Cash Bins etc. should be under Dual Control. The Chest should have
dual Biometric Access System. Cash Receipt Register, Cash Remittance Register, Key
Exchange Register, Visit Register etc. should be maintained up to date. Each entry in
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the register should be authenticated by signature of both the officials/Custodians.
e. Dual Custody of Keys: In case anyone of the Joint Custodians proceeds on
training/leave/official duty, substitute should be provided by the Linked branch/RO
well in advance. It should be ensured that under no circumstances currency chest is
handled by single officer. For details, please refer the circulars given below:

S.N. Details of circular Date Content

1 IC:952:17 04.09.2017 For detailed guidelines in handling of
Strong room/Cash safe/ Bin Keys of
currency chest
2 IC:2464:2021 05.03.2021 Standard Operating Procedure (SOP) for
Currency Chests (Handbook)
4 IC:02761:2021 14.09.2021 1) Standard Operating Procedure (SOP)
for handling of Cash Remittance with
Currency Chest. 2) Accounting of
Expenses by Currency Chests.
5 IC:3333:2022 04.06.2022 ATM Policy 2022-23

VII) Surprise Verification of Cash:

VII. a) At Branch:
a. Branch Manager should carry out surprise checks of the Cash department at least
once a month and they should continue to be primarily responsible for Cash
Management in the Branch.
b. To have a better check over cash held at branches, Regional Offices to conduct
periodical surprise checks of cash held at all the branches in their jurisdiction. For
further details, please refer following circulars:

S.N. Details of circular Date Content

1 IC:2459:2021 05.03.2021 Standard Operating Procedure - Surprise
Verification of Cash at Branches.
2 IC:3030-2022 05.02.2022 Surprise verification of cash

VII. b) At ATM: Branch Managed ATMs (Cash loading done by Branch officials):

a. ATM cash counter balance to be taken. Electronic Journal should be taken.

b. Branch official takes out the entire cash from all the BINs including reject BIN.
c. Physically counts the Cash denomination wise.
d. Compares the same with the Cash Counters in ATM.
e. Checking/rotation of bait money by Branch Manager
f. Compares the total physical cash balance with Balance in “Cash at ATM”.

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g. If tallies, no problem, if difference is found, verify the EJ to locate the transaction.
h. For more details, please refer following circular.

S.N. Details of circular Date Content

1 IC No.110 28.12.2013 Surprise Verification of cash at branches
2 IC:DBD:ATM:2209 15.09.2020 Surprise verification of cash at ATMs
3 IC No.02202:2020 28.09.2020 Reiteration of Guidelines- 1)Handling of
Cash at Branch, ATM & Currency Chest;
2)Handling of Safe Keys at Branch, ATM
& Currency Chest;3)Surprise Verification
of Cash, ATM & Currency Chest

4 IC No.02459:2021 05.03.2021 SOP- Surprise verification of cash

5 IC: 3111-2022 09.03.2022 Implementation of cassettes swap
method of cash replenishment in ATMs.
6 IC:4423:2023 29.07.2023 Implementation of cassettes swap
method of cash replenishment in onsite
ATMs

In case of Excess cash:

a. Obtain Debit Card number from EJ.
b. With the card number (Union Bank Card), from FINACLE find out the account and give
proactive credit to customer account.
c. In case of other Bank Card, park the amount in Sundry deposit a/c excess cash with
proper details and control in ATM Cash register.
In case of Shortage of Cash:
a. Obtain Debit Card number from EJ
b. With the card number (Union Bank Card), from Finacle, find out the account and
debit the customer account.
c. In case of other Bank card, refer the matter to Digital Banking Dept. (DBD) NFS
section for raising charge back in good faith. NFS after reconciling the transactions, if
transaction is found they will pass LORO credit to ATM. If not, they will raise “Charge
back in good faith”.
d. In case of other Bank Card, Please store the CCTV footage of that particular
transaction and EJ of that day till the Charge Back claim settlement.

3.17.2 Vendor Managed ATMs (Cash loading done by Outsourced vendor):

a. ATM cash counter balance to be taken. Electronic Journal should be taken.

b. Branch official takes out the entire cash from all the BINs including reject BIN.
c. Physically count the Cash denomination wise.

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d. Compares the same with the Cash Counters in ATM.
e. Compares the total physical cash balance with Balance in “Cash at ATM”.
f. The difference has to be reported to ATM cell, DBD and DBD will do the
reconciliation and pass necessary vouchers.
g. RBI through its circular No RBI/2017-18/162 dated April 12, 2018, had advised
implementation of Cassettes Swap method for cash Replenishment in ATMs. The
details of circular issued in this regard is as under

S.N. Circular Date Content

1 IC: 3111-2022 09.03.2022 Implementation of cassettes swap method
of cash replenishment in ATMs.
2 IC:4423:2023 29.07.2023 Implementation of cassettes swap method
of cash replenishment in onsite ATMs

3.17.3 Surprise verification of cash at Currency Chest: Please refer IC No.1621-2019 dated
18.07.2019 and IC No.3243:2022-23 dated 23.04.2022 on Cash Management &
Verification at Branches/Currency Chests/ATMs for details. IC:4132-2023 dated
02.06.2023 on Internal Control Systems for Banks maintaining Currency Chest.

3.17.4 Detection of counterfeit notes: With a view to facilitating detection of counterfeit

notes, all Bank branches & identified back offices should be equipped with Ultra
Violet Lamps/appropriate Bank note sorting/detection machines.
a. When a Banknote tendered at the counter of a Bank branch or treasury is found to
be counterfeit, an acknowledgment receipt must be issued to the Tenderer, after
stamping the note. No credit to customers account is to be given for counterfeit
notes at branch or at Currency Chest.
b. In no case, the counterfeit notes should be returned to the Tenderer or destroyed
by the Bank branches / treasuries. Failure of the Banks to impound counterfeit
notes detected at their end will be construed as willful involvement of the Bank
concerned, in circulating counterfeit notes and penalty will be imposed by RBI for
violation of directive.
c. Penalty: Penalty at 100% of the notional value of counterfeit notes, in addition to the
recovery of loss to the extent of the notional value of such notes is imposed if the
counterfeits notes are found at Branch or Currency Chest with the Soiled Notes.

S.N. Details of circular Date Content

1 IC:03206:2022 11.04.2022 Master Circular - Detection and
Impounding of Counterfeit Notes

2 IC:02422:2021 06.02.2021 Reporting of Counterfeit Currency

Note Report (CCR)

3 IC:02301:2020 17.11.2020 Master Circular issued by RBI on

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Currencymanagement:1) Detection
and Impounding of Counterfeit
Notes, 2) Facility for Exchange of
Notes & Coins, 3) Receipt &
Remittance of Treasure.

4 IC:01670:2019 31.08.2019 Detection and Impounding of

Counterfeit Notes
5 IC:01589:2019 17.06.2019 Curb Circulation of Counterfeit
notes through ATMs

6 IC:1585:2019 07.06.2019 Detection of counterfeit notes

3.18. Door Step Banking (DSB) Services:

As per RBI instructions the basic banking services are provided to Senior Citizens
above 70 years of age & differently abled persons at their doorstep.

Further Under PSB Alliance, Door Step Banking Services as a part of EASE reforms of
the Department of Financial Services, Govt. of India, were launched by Hon'ble
Finance Minister on 09.09.2020 at 100 selected centres across the country for all

PSBs. Presently Bank is providing following services to our customers including

Senior Citizens above 70 years of age & differently abled persons under PSB Alliance-
Door Step banking:

S.N Details of services Non financial services Financial services

.
1 Pick up service Pick up of:
i. Cheques/Demand Draft/ Cash Withdrawal
Pay Order
ii. New cheque book
requisition slip
iii. Forms 15G/15H
iv. IT CHALLAN /Govt.
Business/ GST
v. Issuing Standing
Instructions
vi. Fund Transfer Request
vii. Account nomination
request

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2 Delivery Service Delivery of:
i. A/c Statement
ii. Non-Personalized
Cheque book, DD, Pay
Order
iii. Prepaid instrument/Gift
card
iv. TDS / Form 16
Certificate
v. Term Deposit Receipt /
Acknowledgement
Other services Submission of Life Certificate

In other branches, Bank shall offer doorstep banking services on a best effort basis.
The details of circulars issued on Door Step Banking are given as under:

S.N. Details of circular Date Content

1 IC no.1573-2019 24.05.2019 Providing Door Step Banking to Senior
Citizens above 70 years age &
Differently Abled Persons

2 IC no. 02199-2020 08.09.2020 Comprehensive details on all parameters

including process flow, URL to access
Mobile Application, customer Web Portal
and Branch Web Portal, contact details
of Customer Care, city wise SPOC (single
point of contact),email IDs of DSB
support system of both service providers
etc.
3 IC No. 2288:2020- 31.10.2020 PSB Alliance - Door Step Banking (DSB)
21 Services – Launch of Financial Services
(cash withdrawal) and submission of
Digital Life Certificate for pensioners.
4 IC no. 03135:2022 24.03.2022 PSB Alliance - Door Step Banking (DSB)
Services – Nomination and Fund Transfer
requests

3.19 Queue Management Services (QMS) and Single Window Operations (Green channel):
Under EASE 3.0, one of the action points is the Technology –driven improvements for
quicker, time efficient customer service in Transaction Intensive Branches. The
components of which are conversational banking, QMS and Single Window Operations.

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Bank has initiated the process for implementation of Virtual Branch Banking
(conversational Banking and QMS, SWO).

3.20 Automation in Operational Processes: Department has initiated various steps for
automation of processes to increase operational efficiency and customer as well as staff
convenience. The details are as under:

3.20.1 Internal Processes: There are various processes which are initiated, few of the major
processes are:
a. My Diary
b. Cheque Book Automation
c. E-Nomination
d. CKYC
e. eKYC related
f. Other related
g. Digital Document Execution
h. Revamping of Clearing Mechanism
i. E-Cash Receipt
j. Batch Transfer File (BTF)
k. Complaint Management Solution
l. CERSAI Registration etc.
m. Union Virtual Connect (UVConn- 46 services through WhatsApp)
n. Union Bank Voice Assistant (UVA)
o. Google Business Messaging (GBM)
p. Positive Pay System
q. Revamping of DMS Application

3.20.2 Robotic Process Automation (RPA): The Department in close co-ordination with RPA
Service Provide (already on-boarded) is working for automation of various processes
using RPA. Following Back-end Processes have been automated using RPA:
a) NEFT reconciliation
b) Doorstep banking data update in My Diary Portal
c) IMPS report download
d) Payment of Bonds

3.21 Any Branch Banking (ABB): ABB is a facility wherein a customer maintaining an
account at base branch can carry out transactions in his account maintained at base
branch through remote branches. The remote branch is also Core Connected Branch,
which is located away from base branch, where customer of a base branch can
undertake his transactions. ABB facility is available in all branches of our Bank. This
facility can be extended to all individual customers and business concerns having an
SB, CA, OD, CC, accounts. Facilities at Non-Base/Remote Branch are as under:

a. Cash Withdrawal: The customer can withdraw cash from his/her account

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maintained at the base branch or at any of the remote branches. This facility is
available to customer only as per limit fixed by the Bank.
b. Cash Deposit: Customer can deposit cash for credit of his account maintained at
the base branch or at any of the remote branches. This facility is extended to the
customer as well as to a third party as per the limit prescribed by the Bank
c. Fund Transfers: The customer can transfer funds from his account maintained at
the base branch to any account, including third parties account at any of the
remote branches.
d. Purchase of Demand Drafts: The customer can purchase a Demand Draft at a
remote branch by debit to his account maintained at the base branch.

e. Local Cheque Clearing Realization: The customer can tender cheques at remote
branch for crediting the proceeds after realization to his account maintained at
the base branch.

f. Balance Inquiry & Issue of passbook / statement of accounts: The customer can
make inquiries regarding balance in his accounts and obtain new passbook of
accounts relating to his account of base branch at remote branches.
g. Stop Payment facility at Remote Branches: An account holder can give
instructions to stop payment /revocation of stop payment instruction to cheques
issued by him at any of our branches by giving a written request.
h. Repayment of loan account: The customer can make repayments to their loan
accounts such as Housing loan, vehicle loan etc. at any branch by depositing cash
/ local cheque.

3.22 Currency Chest: Reserve Bank of India (RBI) carries out the function of Currency
Management, through its network of Issue Offices and Currency Chests. Commercial
Banks are managing the Currency Chest (CC) operations as a custodian of RBI. To
ensure that the risks involved in Currency Chest operations are identified, monitored,
managed and mitigated by the Banks, the RBI has prescribed several control systems.
RBI penalizes Banks for failure to comply with such control systems at Chests. RBI
incentivizes Banks for proper Currency Management, exchange of soiled notes and
Coin Distribution to general public under its framework on incentives titled “Currency
Distribution & Exchange Scheme (CDES)”.
Currently, our Bank is managing 109 Currency Chests across the country as per the
standard operating procedure stipulated by RBI. The functions of Chests mainly
include Currency Distribution including Coins, Remittance of Soiled Notes to RBI and
complying with various policies of RBI like Clean Note Policy. Currency Management
Cell at Operations Dept. Central Office is monitoring all the Currency Chest and is
responsible for formulation of policies/guidelines/control systems for Currency Chests
based on the directions of RBI.

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Currency Chests can increase their non-interest income by way of providing cash
remittance facility to other bank branches / ATMs. As per RBI guidelines vide, our
circular IC:4012-2023 dated 05.04.2023.
Currency Chests need to avoid imposition of penalties by RBI, by scrupulously
complying with guidelines. Detailed guidelines with regard to penalties are furnished
in IC-4012-2023 dated 05.01.2023 on Master Direction – Scheme of Penalties for bank
branches and Currency Chests for deficiency in rendering customer service to the
members of public.

S.N. Circular Ref. Date Contents

1 IC:2202:2020 19.09.2020 Guidelines on handling of cash, safe keys, surprise
verification of cash
2 IC:2223:2020 28.09.2020 Verification of currency chest balances by
concurrent auditors
3 IC:2301:2020 12.11.2020 Master circular issued by RBI on currency
management
4 IC:2354:2020 18.12.2020 Master circular issued by RBI on internal control
system for Banks maintaining currency chest

5 IC:2435:2021 01.03.2021 Precaution during Bank cash in transit

6 IC:2443:2021 01.03.2021 Harmonization of functioning and accounting
procedures of currency chests under
amalgamated entity and rationalisation of
currency chest
7 IC:2464:2021 05.03.2021 Union Currency Chest – Currency Chest Operations
and Management Handbook
8 IC:2951-2021 17.12.2021 Common irregularities observed by RBI during
inspection of Currency Chest Operations

9 IC:02933:2021 29.12.2021 Minimum Standards for a Currency Chest

10 IC:02761:2021 13.09.2021 1)Standard Operating Procedure (SOP) for

handling of Cash Remittance with Currency Chest.
2)Accounting of Expenses by Currency Chests.
11 IC:3243:2022 22.04.2022 Cash Management and Verification at
Branches/Currency Chests/ATMs
12 IC:03249-2022 26.04.2022 Master Direction- Receipt & Remittance of
treasure
13 IC:03072-2022 22.02.2022 Payment of salaries of Police Personnel posted at
Currency Chests. Also refer to Expenditure Policy
of the current year.
14 IC:04009-2023 05.04.2023 Master Direction – Facility for Exchange of Notes
and Coins
15 IC:04010-2023 05.04.2023 Master Direction on Framework of Incentives for
Currency Distribution & Exchange Scheme for
bank branches including currency chests.
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16 IC:04011-2023 05.04.2023 Master Direction on Penal Provisions in reporting
of transactions/ balances
at Currency Chests
17 IC:04012-2023 05.04.2023 Master Direction – Scheme of Penalties for bank
branches and Currency Chests for deficiency in
rendering customer service to the members of
public
18 IC:04013-2023 05.04.2023 Master Direction on Counterfeit Notes, 2023 -
Detection, Reporting and Monitoring.
19 IC:04165-2023 21.06.2023 Reporting of fraud and adverse events in Currency
Chests (CCs) –Standard Operating Procedure (SOP)
issued by RBI.
20 IC:04132-2023 02.06.2023 Internal Control Systems for Banks maintaining
Currency Chest
21 IC:04231-2023 24.07.2023 Performance Recognition Campaign for Currency
Chests – FY 2023-24 - “Mudra se Munafa & Kayide
se Fayada”

Further, Operations Dept. has brought two e-Manuals 1] Cash Management and 2]
Currency Chest Cash & Cash Management which are available for reference on
UBINET→ E-manual → Link for e-manual. Apart from guidelines prescribed by RBI,
Circulars and e-manuals contain ‘Do’s’ and ‘Don’ts’ for currency chest officials. This
will not only help our currency chest staff to effortlessly familiarize themselves with
the fundamentals of currency chest operations and helps them to discharge their role
more effectively. At the same time, by diligently following the laid down
instructions, the Bank can minimize the risk.

3.23 Digital channels/products: Digital Banking products are being looked into Digital
Banking Dept. however for the convenience to the Branches, brief details on these
products is given as under.

3.23.1 Internet Banking: Our Bank offers its customers the Internet Banking 24X7 services
to carry out Banking activities from the comfort of their home/office without any
hassle. The customer has at least one operating account with our branch. Individual
customers possessing ATM cum Debit Card may create internet Banking User id and
passwords through Self User Creation module on our website. Individual customers
not having an ATM cum Debit Card may also create internet Banking User id and
passwords through Self User Creation module on our website, their user id will be
given only view rights. Corporate customers should apply through the branch using
the internet Banking application format for viewing and transaction facility.

3.23.2 SMS Banking: It provides instant notification about the transactions as and when it
happens. It helps the customer to keep a watch on their account with a round the
clock service. With this facility, the customers are in a position to detect
unauthorized access to their account. It also helps to know the balances and mini
statements instantly by just sending an SMS at 09223008486. There is many other

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services viz. Cheque Status, Know the nearest branch/ATM, Aadhaar number seeding
etc. customer can avail through the said service. To register, the customer has to
call our 24X7 Call Centre or contact their branch. Positive Pay facility has also been
embedded in SMS banking. User can send SMS to 9223008486 and submit the cheque
details under positive pay in the following format:

UCPPS <Account no><cheque no><Issue date in dd/mm/yyyy><Amount in rupees and

paiseupto two decimal points><MICR code><SAN no><transaction code><Payee Name>

3.23.3 POS (Point of Sales) Terminal: POS or Swipe Machine as it is popularly known is a
technological instrument provided to a Merchant Establishment (ME) to carry out the
sale of goods or services to customers in a cashless environment. The customer has to
do is swipe their Debit/Credit/Prepaid Card. The Merchant should have a current
account with a branch of the Bank with a satisfactorily account operation. The
merchant should not be in Visa/MasterCard negative list for malpractices.

3.23.4 FASTag: Union Bank FASTag program is part of National Electronic Toll Collection
(NETC) initiative rolled out by NPCI under the aegis of NHAI and IHMCL. It is a
reloadable tag which enables automatic deduction of toll charges and let you pass
through the toll plaza without stopping for the cash transaction. It is linked to a
prepaid account from which the applicable toll amount is deducted. The tag employs
Radio-frequency identification (RFID) technology and is affixed on the vehicle’s
windscreen after the tag account is active.

3.23.5 IMPS (Immediate Payment Service): Under this facility, customers can approach any
of our branches and request for instant fund transfer. IMPS facility allows customers
to instantly transfer funds to any other Bank account upto Rs.5.00 lacs per day.

3.23.6 Debit Card: It can be used to avail Banking services such as cash withdrawal, balance
value added services viz. Fund Transfer, Mobile recharges, other payments etc. from
ATMs round the clock. Payments can also be made to merchants through POS
terminals and online mode.

3.23.7 Credit Card: It offers a hassle free and secured shopping experience at an
assortment of outlets and websites around the globe. The card can also be used for
cash withdrawal at ATM centers. The attractive spending limit is 20% of the annual
gross salary. The maximum free credit period is up to 50 days. There is flexi payment
option and EMI scheme for the period of 3/6/9/12 months are also available at
attractive interest rates. 24-hour hot-listing facility is available. Now a separate
vertical is created exclusively to look after Credit Card and its transactions.

3.23.8 Gift Cards: The customers can use the Union Bank Gift Card at a wide variety of
locations accepting Visa cards, including restraints and entertainment venues. In

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order to apply for the gift card, one has to contact their nearest branch with KYC
documents. It can be obtained for any amount between Rs.250/- and Rs.10000/- and
can be used in India before the expiry date embossed on the card. It cannot be used
to withdraw cash at ATMs. There is no pricing for the Card. They are issued free of
cost to customers.

3.23.9 ATM Banking: As a Union Bank ATM card holder, one can perform Banking
transactions round the clock. Additionally, Union Bank ATMs accept all
Visa/MasterCard/RuPay/Discover/JCB &UnionPay cards. Our Bank’s ATM allows card
holders to perform various functions such as Cash Withdrawal, Balance Enquiry, Mini
Statement, Change of PIN, Transfer of funds to other Union Bank accounts linked to
the card, Registration for Mobile Banking, Payment of Utility bills, Request for
cheque books and account statements, Inter-Bank card to card fund transfer Inter-
Bank remittance through IMPS, Mutual Fund payments.

3.23.10 Cash Recycler Machine (CRM): It is capable of accepting and dispensing multiple
notes simultaneously. CRMs accepts maximum 200 currency notes of Rs.100, Rs.200,
Rs.500 denominations per transactions and maximum value of Rs.49999/-. With PAN
card validation additional amount up to Rs.1.00 lakh can be deposited per
transaction.

3.23.11 Semi-Automatic Passbook Printers (SAPBP): The machine provides the convenience
of self-operation for customers as also anytime passbook updation. The Barcode
based passbooks are specific for each account and can be updated either at the
SAPBP or in branches desktop printers.

3.23.12 Cheque Deposit Machine (CDM): Bank has installed CDMs at selected branches and e-
lobbies. The CDMs are self-operation without intervention of Bank staff. The machine
accepts the cheque and also provides additional facility of account name/number
verification for credit to the correct account.

3.23.13 App Banking:

a. VYOM (Mobile Banking): It provides the customer a secure and convenient means
of Banking and commerce from anywhere anytime. Customers can check their
account balances, take a mini-statement, transfer money to Union Bank accounts and
other Bank accounts, Fee Payments, Stop Cheques, Know cheque status, know
branch/ATM locations, make request for cheque books, make donations etc.

b. Union Credit Card App: Credit Card holders can make use of Card control features
either through UMobile app or Union Credit Card app for payment channel/limit
setting (ATM/Cash, POS, e-commerce and NFC/Contactless) and other features like

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PIN change, Standing Instruction, hot-listing, Virtual Card generation, Bill payment
etc. instantly.

c. BHIM / UPI: UPI application is a payment system that allows transferring money
between any two parties with virtual identity. It allows to instantly transferring
money to someone else using the IMPS payment framework, without knowing their
Bank account details.

d. BHIM Aadhaar Pay: It is a mobile based application wherein a merchant receives

payment from the customer after biometric authentication of customer is successful.
The payment can be made against any goods or services from the merchant.

3.23.14 Call Centre: Bank has a Call Centre which offers uninterrupted 24x7x365 Banking
services to its customers. Calls can be taken by the IVR in 14 Regional languages
namely Assamese, Bengali, Gujrati, Malayalam, Marathi, Tamil, Telugu, Kannada,
Oriya, Punjabi, Urdu, Konkani, Khasi and Kashmiri besides Hindi and English. The All-
India Toll Free numbers are 1800222244,18002082244,1800222243 and
18004251515.The chargeable number is 080-61817110. The dedicated number for Non
Resident is +918061817110. Fund transfer facility upto Rs.5000/- is also made
available in IVR. For details refer Information Cir.No.06336-2023 dated 22.06.2023.
The Services Offered by Call Centre are mentioned as under:
a. Inbound Calls: Responding to Queries, service requests and complaints of the
customers landed through toll free Nos seamlessly.

b. Outbound calls: Welcome call, Dormant/Inactive Account Calling, Union dial, Call to
NRI customers, overdue locker ac calling, leads on aggregator calling, leads on
alternate delivery channel calling, EFRM, IVR Call back. Chatbot Call back, Analytics
calling.
c. Chatbot: Responding to Queries raised through corporate website, internet banking
and Vyom app.

d. Email: Handling of Customer tailored emails and outbound emails related to cyber
fraud are taken up 24x7 by Call Centre.

The performance of the Call centre is measured based on SLA Parameters viz Call
Flow for Outbound, System Availability, Call Queue waiting time (Calls attended
within 20 secs), Call abandonment rate, Call Quality Score, Occupancy, Manpower,
SLA penalty for chatbot, C-SAT etc.

3.23.15 Union Cashless Campus: It enables all financial transactions through cashless digital
channels in an educational institution. Various kinds of fees are collected from the
students through Debit cards, Credit cards and Internet Banking from the respective
websites of the institutes.

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3.23.16 UVConn (WhatsApp Banking): UVConn is an innovative way for the customers to
remotely access the Banking Services seamlessly using WhatsApp Chat Messenger.
Bank’s Official WhatsApp Business Account Number for UVConn is 9666606060.
Customer needs to send “Hi” on WhatsApp Number- 9666606060 from Registered
Mobile Number (RMN) for registering into UVConn. Currently, 46 services are available
through UVConn and is accessible in 7 Languages. For ready reference, please refer
the below Circulars:

3.23.17 UVA (Union Bank Voice Assistant): UVA is an innovative way for customers to access
banking services seamlessly through voice commands. Currently 9 services are
available for customers through Alexa channel. For ready reference, please refer the
IC No 06169-2023 dated 14-02-2023, 06362-2023 dated 12-07-2023 and 06425-2023
dated 20-09-2023.

3.23.18 GBM (Google Business Messaging): Google Business Messaging is a feature of Google's
My Business platform that allows businesses to communicate directly with customers
via text messages. Bank can use it to manage interactions with customers, track and
respond to messages, and provide real-time support quickly and efficiently. GBM
offers the unique advantage of cross-selling/upselling to customers including NTB
customers through different Google end points such as Google Search, Google Maps
etc. For ready reference, please refer the IC No 06427-2023 dated 20-09-2023.

3.24 Govt. business related: Bank is authorized to open various accounts under Govt.
Business products, the details of which are as under:

3.24.1 Public Provident Fund (PPF): This is a government backed, long term small savings
scheme. All our branches are authorized to open account under this scheme. Annual
subscription in a Financial Year is eligible for tax exemption under Sec 80 C of I.T.
Act. The minimum deposit is Rs. 500/- and maximum limit is Rs.1,50,000/- in multiple
of Rs.50/- may be made in an account in a financial year under this scheme. The
account is for 15 Years, However Depositor at his option can extend for blocks of 5
years. PPF is a long term product which offers better compounding and EEE Exemption
on maturity.

3.24.2 Senior Citizen’s Deposit Scheme 2004 (SCSS): Central Government Scheme for Senior
Citizens for better returns. All our branches are authorized to open account under this
scheme. An Individual who has attained the age of 60 years and above. (Except NRIs
and HUFs) or who has attained the age of 55 years but has retired voluntarily under
VRS/Superannuation, within 1 months of retirement or receipt of retirement benefits
may open one or more accounts in multiples of Rs.1000/- subject to a maximum of
Rs.30.00 Lac including all the investments made by the customer in various accounts.
There shall be only one deposit in the account. The deposits are for a period of 5
years. The same can be extended once for a further period of 3 years by the

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depositor. An application in FORM 4 should be made within a period of one year after
date of maturity period. Interest earned is fully taxable.

3.24.3 Sukanya Samriddhi Scheme Account (SSA): It offers a small deposit investment for
the girl children as an initiative under ‘Beti Bachao Beti Padhao’ campaign to
encourage parents to build a fund for the future education and marriage expenses of
their female child. One of the key benefits of the scheme is that it is quite affordable
and offers one of the highest rates of interest and interest benefits as well. The
account can be opened in the name of a girl child (except NRI’s) till she attains the
age of 10 years and only one account can be opened in the name of her. (Natural or
legal guardian of a girl child is allowed to open one account each for two girl
children. It also allowed to open third account in the event of birth of twin girls as
second birth or if the first birth itself results into three girl children, on production of
a certificate.). Account can be opened with a minimum amount of Rs. 250/- and
thereafter in multiples of Rs. 100 with maximum ceiling limit of Rs. 1,50,000 in a
Financial Year. Contributions have to be made till 15 years from the date of the
account. Account matures on completion of 21 years from the date of account
opening & or the marriage of the girl child whichever is earlier.

3.24.4 Kisan Vikas Patra (KVP): It is a risk-free investment scheme. This scheme is for
people who are less risk averse and are looking for stable income. Any Individual,
who is an Indian citizen, are eligible (including Minor) except for NRI’s
/Trust/HUF/Institution who are not eligible for this scheme. Investment can be
made in denomination of Rs. 1000, 5000, 10000 and 50,000 with no upper ceiling limit
(Pan Card mandatory for investment of Rs. 50,000/- & Above). There are no tax
benefits, since interest accrued on Kisan Vikas Patra is taxable (Maturity amount is
exempted from TDS).

3.24.5 Atal Pension Yojana (APY): It is a defined monthly pension ranging from Rs.1000 to
Rs.5000 per month. The monthly contribution starts as low as Rs.42 per month and
depends upon the age of the subscriber and desired pension amount. The scheme
would be regulated by PFRDA. The scheme will provide defined pension to individuals
depending upon the amount and period of contribution for age group 18-40 years.

3.24.6 National Pension System (NPS): It’s administered and regulated by Pension Fund
Regulatory and Development Authority (PFRDA). NPS is a voluntary, defined
contribution retirement savings scheme designed to enable the subscribers to make
optimum decisions regarding their future through systematic savings during their
working life. NPS seeks to inculcate the habit of saving for retirement amongst the
citizens. It is an attempt towards finding a sustainable solution to the problem of
providing adequate retirement income to every citizen of India. It is operated with
the participation of the Central Recordkeeping Agency (CRA) which is the National
Security Depository Ltd. (NSDL).

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A citizen of India, OCI, whether resident or non-resident is eligible to open the
account. Applicant should be between 18 – 65 years of age as on the date of
submission of his/her application to the POP/ POP-SP.
The subscribers joining the NPS after the age of 60 would be eligible to continue in
system up to age of 70 years and during this period the subscriber may continue to
contribute. Two types of accounts can be opened under NPS. They are:
a. Tier-I account - The applicant shall contribute his/her savings for retirement into
this non-withdrawal account. This is the retirement account and applicant can claim
tax benefits against the contributions made subject to the Income Tax rules in force.
b. Tier-II account - This is a voluntary savings facility. The applicant will be free to
withdraw his/her savings from this account whenever he/she wishes. This is a not a
retirement account and applicant can’t claim any tax benefits against contributions
to this account.

3.24.7 E-Stamping: Our Bank is authorized to undertake e-stamping business in 18 States

and provides the facility of generating of e-stamps through our 66 Regional Offices.
It is a secured way of paying non-judicial stamp duty of State Govt.
Bank has entered into an agreement with The Stock Holding Corporation of India Ltd.
(SHCIL) for offering e-stamping facility Pan India.
E-stamping is computer-based application and a secured way of paying non-judicial
stamp duty to the government. SHCIL is the only Central Record Keeping Agency
(CRA) appointed by Government of India. We are Authorized Collection Centers
(ACC) and act as the middle-men between the CRA and Stamp Duty payer, to issue e-
stamp papers and generating an income of 0.14% of stamp duty paid.
Designated branches for E-Stamping must desist using “stamp on hand account”
(823/1000)

3.24.8 Mahila Samman Savings Certificate, 2023:

Scheme Guidelines:
a. MSSC, 2023 is Govt. of India sponsored savings scheme, and our bank is
authorized as an agency bank for opening of accounts under the scheme.
b. Accounts can be opened under this scheme on or before the March 31, 2025
for a tenure of two years.
c. Any resident Indian woman of any age is eligible for the scheme. Account
opened on behalf of a minor girl to be operated by the natural/legal
guardian till she attains majority.
d. Only single holder accounts are permitted under this scheme.
e. There is no cap on number of accounts for a single depositor subject to
condition that the cumulative amount in all the accounts under this scheme
shall not exceed ₹200000/-
f. There shall be a time gap of three months from the date of opening of the
existing account for opening another account under this scheme.
g. An account shall mature on completion of two (2) years from the date of

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account opening.
h. Minimum initial deposit amount shall be ₹1000/- and any sum in multiples of
₹100/- thereof shall be deposited in the account.
i. The scheme has rate of interest 7.5% per annum. The interest shall be
compounded quarterly and credited to the account.
j. Any MSSC account opened in contravention of rules shall be immediately
closed and deposit amount returned to the depositor with interest at the
rate as applicable on Post Office Savings Account.
Unique Selling Proposition (USP’s):
a. Attractive and secured investment option to all girls and women. Account
can be opened under this scheme on or before the March 31, 2025 for a
tenure of two years
b. The deposit made under MSSC will bear interest at the rate of 7.5% per
annum* which will be compounded quarterly. Therefore, the effective
interest rate will be roughly 7.7 percent.
c. Maturity of the investment under this scheme is two years from the date of
opening of the account under the scheme.
d. It envisions flexibility not only in investment but also in partial withdrawal
during the scheme tenor. The account holder is eligible to withdraw
maximum up to 40% of the eligible balance in the scheme account after one
year from the date of opening.
e. Our Bank as an agency bank will get commission income from RBI for opening
of accounts under the scheme.

4. Compliance related parameters:

4.1 Anti- Money Laundering (AML): Section 3 of the Prevention of Money Laundering
(PML) Act 2002 has defined the “offence of money laundering” as “whosoever
directly or indirectly attempts to indulge or knowingly assists or knowingly is a party
or is actually involved in any process or activity connected with the proceeds of
crime and projecting it as untainted property shall be guilty of offence of money
laundering. “Money launderers use the Banking system for cleansing ‘dirty money’
obtained from criminal activities with the objective of hiding/disguising its source.

The process of money laundering involves creating a web of financial transactions so

as to hide the origin and true nature of these funds.

4.2 Obligations under Prevention of Money Laundering (PML) Act 2002: Section 12 of
PML Act 2002 places certain obligations on every Banking company, financial
institution and intermediary, which include: -

a. Maintaining a record of prescribed transactions

b. Furnishing information of prescribed transactions to the specified authority

S.N. Details of circular Date Content

1 IC:2629:2021 29.05.2021 PML Act 2002 and as amended from time
to time
2 IC:3959-2023 28.03.2023 KYC-AML Policy 2023-24

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4.3 Non Profit Organization (NPO) Transaction Report (NTR): All transactions involving
receipt by non-profit organizations exceeding Rs.10.00 lacs or its equivalent in
foreign currency.

4.4 Counterfeit Currency Report (CCR): All cash transactions using forged currency
notes or valuable security or document. CCR has to be submitted by the Branch to
Nodal Chest Officer. Simultaneously, the branches/currency chests have to report
detection of fake notes to KYC AML Division, Mumbai through AML Software called
“Omni Enterprises”. Principal Officer of the Bank has to submit CCR to FIU-IND in the
specified format by 15thday of the next month. Delay and/or non-reporting may
attract financial penalty by FIU India, Ministry of Finance, recoverable from erring
officials as personal liability. Refer IC no. 2422:2021 dated 06.02.2021.

4.5 Cross Border Wire Transfer Reporting (CBWTR): With the amendments to
prevention of Money Laundering (PML) Rules, notified by the Government of India
vide Notification No.12 of 2013 dated August 27, 2013 and in terms of amended Rule
3, every reporting entity is required to maintain the record of all transactions
including the record of all cross border wire transfers of more than Rs.5.00 lacs or its
equivalent in foreign currency, where either the origin or destination of the fund is
in India. Bank shall ensure that the information of all such transactions shall be
furnished to Director, FIU-IND by 15th of the succeeding month.

S.N. Details of circular Date Content

1 IC:2629-2021 29.05.2021 CBWTR
2 IC:07202-2021 22.12.2021 Introduction of Legal
Entity Identifier (LEI) for
Cross Border
Transactions
3 IC:07205-2022 27.01.2022 Cross Border
Remittances -
Precautions

4 IC:06304-2023 20.05.2023 Cross Border transactions

Caution advices

4.6 Suspicious Transaction Report (STR): Suspicious transaction means a ‘transaction’,

including an attempted transaction, whether or not made in cash, which, to a person
acting in good faith

a. Gives rise to a reasonable ground of suspicion that it may involve the proceeds of an
offence specified in the Schedule of the Act, regardless of value involved; or
b. Appears to be made in circumstances of unusual or unjustified complexity; or
c. Appears to have no economic rationale or bonafide purpose; or

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d. gives rise to a reasonable ground of suspicion that it may involve financing or the
activities relating to terrorism includes transaction involving funds suspected to be
linked or related to OR to be used for terrorism, terrorist acts or by a terrorist,
terrorist organization or those who finance or are attempting to finance terrorism

S.N. Details of circular Date Content

1 IC: 2356-2020 18.12.2020 Offline Indicators of Suspicious
transaction report
2 IC:04101-2023 23.05.2023 Reporting of Suspicious
Transaction Reports (STR) based
on Offline RFIs through AML
Software- Omni enterprises
3 IC:04175-2023 27.06.2023
Reporting of Suspicious
Transaction Reports (STR) based
on Offline RFIs- Pre Paid
Instruments (PPI)Through AML
Software "Omni Enterprises"

4.7 Cash Transaction Report (CTR):

a. The maximum permissible cash transaction in an account in a day is Rs.10.00 lacs

(both receipts & withdrawals)
b. All cash transactions of more than Rs.10.00 lacs or its equivalent in foreign currency
c. All series of integrally connected cash transactions exceeding Rs.10.00 lacs or its
equivalent in foreign currency in a month
d. CTR has to be submitted by CO to FIU-IND by 15th day of succeeding month

S.N. Details of circular Date Content

1 IC:3959-2023 28.03.2023 KYC-AML Policy 2023-24

4.8 Payment of Premium to Deposit Insurance & Credit Guarantee Corporation

(DICGC): In terms of the Deposit Insurance and Credit Guarantee Corporation (DICGC)
guidelines; the Bank is required to make payment of Deposit Insurance Premium to
DICGC on the basis of the total deposit position of the Bank as on the last working
day of March and September every year. This premium is payable by Bank in
advance by the last day of second succeeding month of relative half-year.

As per latest DICGC’s letter dated 05.02.2020, the limit of insurance cover in respect
of amounts due to a depositor of an insured Bank has been increased from Rs.1.00 lac
to Rs.5.00 lacs w.e.f. 04.02.2020. The rate of annual premium payable by the insured
Banks has been raised from 10 paise per Rs.100.00 to 12paise per Rs.100.00 of

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assessable deposits w.e.f.01.04.2020.

4.9 Depositor Education and Awareness Fund (DEAF): Reserve Bank of India established
Depositor Education and Awareness Fund through section 26A of the Banking
Regulation Act, 1949. As per the Depositor Education and Awareness Fund Scheme,
2014, Banks are required to transfer the credit balance in any deposit account
maintained with them which have not been operated/ claimed upon for ten years or
more on monthly basis. Amount so collected by the fund shall be utilized for
promotion of depositors’ interest & for such other purposes which may be necessary
for promotion of depositors’ interest as specified by RBI from time to time.

4.10 Procedure for remittance to DEA Fund and Refund Claim: Every month, Operations
Department conducts following exercises for remittance of funds and claiming the
refund.

a. At the end of each month, dormant accounts which have not been operated for ten
years are identified and after calculating interest on the funds, the total corpus is
remitted to RBI through e-Kuber portal.
b. At the beginning of each month, refund is claimed for the accounts which were
earlier remitted to DEA Fund but have been activated now.

S.N. Details of circular Date Content

1 IC:10033 26.08.2014 The Depositor Education Awareness
Fund Scheme-2014
2 IC:01612-2019 08.07.2019 Scrutiny of accounts to be identified
under the RBI DEAF Scheme in any
future date up to 3 months
3 IC:02750-2021 26.08.2021 Standard Operating Procedure - Dea
Fund Refund Claim Process
4 IC:03331-2022 04.06.2022 Scrutiny of accounts to be identified
under the RBI DEAF Scheme in any
future date up to 3 months

c. In order to curtail the amount being remitted to DEA fund every month and also to
recover the amount that has already been remitted, Branches should take necessary
steps in identifying/contacting the customers for operations in the accounts.

4.11 Uniform Customer Identification Code (UCIC): It is issued to each customer while
entering into any new relationship and customer shall be identified by that code.
Similarly, existing individual customers shall also be allotted to UCIC. The existing
customers, who have multiple accounts and separate/multiple customer
identification codes, shall be brought under one single Unique Customer
Identification Code (UCIC) by merging their existing multiple identification codes. In
case of further details, please refer following circulars.

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S.N. Details of circular Date Content
1 DIT:CBS:07745- 03.04.2014 Procedure to be followed in case of
2014 different customer Ids having same
PANS number.
2 DIT:CBS:0540:2017 15.06.2017 De-duplication of PAN/AADHAAR in CBS
3 IC:02065-2020 14.05.2020 Uniform Customer Identification Code-
Reiteration of guidelines

4.12 Beneficial Owners: Beneficial owner is the natural person who ultimately owns or
controls and/or the person on whose behalf a transaction is being conducted, and
includes a person who exercises ultimate effective control over a juridical person.
The details of circulars are as under:

S.N. Details of circular Date Content

1 IC:00016-2015 20.03.2015 Creation of Ids of Beneficial Owner
2 IC:01467-2019 12.02.2019 Non updation of Beneficial Owner
details in Eligible Accounts
3 IC:02062-2020 14.05.2020 Updation of Beneficial Owner Details

4.13 Reporting to Govt. Authorities: CBI, ED, SEBI, CVC, Cyber crime cell,
Excise/custom authorities etc. Separate communications are received through
letter/emails from various government agencies such as SEBI, CBI, ED, SFIO (Serious
Fraud Investigation Office), Income Tax, Excise, Cyber Crime Department etc.
seeking information about various accounts, KYC, account opening forms, counter
party details, account statement etc. In some cases, the reply has to be submitted to
the concerned authority immediately while in other cases, it is to be submitted
within a stipulated timeline. Branches shall file STR invariably in aforesaid cases.
Refer IC 2356-2020 dated 18-12-2020.

S.N. Details of circular Date Content

1 IC:2808-2021 30.09.2021 Revised Standard Operating Procedure
(SOP) for attending various
communications received from Law
Enforcement Agencies (LEAs) &
Maintaining Record through My Diary
Portal
2 IC:2683:2021 19.07.2021 Standard Operating Procedure (SOP)
for attending various communications
received from Law Enforcement
Agencies (LEAs) & Maintaining Record
through My Diary Portal

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4.14 Issuance of Caution Advises/Circulars:

It has been observed that multiple attempts have been made to defraud the Bank
using forged cheque presented through CTS clearing and remittances through
NEFT/RTGS. A perusal of reported cases of frauds /attempted frauds indicates that
Branches are not contacting the customers / base branch especially in case of
RTGS/NEFT transactions. It is very crucial when transactions are done at remote
branches (Inter Sol Transactions).

In line with the RBI directives to review and strengthen the controls in cheque
presenting / passing process to mitigate cheque related frauds, our Bank had
introduced additional security feature of Alpha Numeric Random Number in Cheques.

S.N. Details of circular Date Content

1 IC:05430-2021 04.01.2021 Replacement of Old Cheque with new
cheque having additional security
features
2 IC: 02598-2021 12.05.2021 Phasing out the usages of Old Cheques
in Amalgamated Entity
3 IC:2780:2021 13.09.2021 Surging Trend in Cheque Frauds -
Need for Caution in passing of
Outstation/Inter SOL/ Non Base
Branch cheques

4.15 Risk Management: Bank’s Internal Audit and Compliance functions will provide an
independent evaluation of KYC/AML policies and procedures including legal and
regulatory requirements. Concurrent/ Internal Auditors shall specifically test check
and verify the application of KYC/AML procedures for new customer as well as
periodic updation of KYC at branches and comment on the lapses observed in this
regard. Management Audit shall check the effectiveness and timely scrutiny of alerts
by ROs, being sent by KYC-AML Division and also comment on progress under KYC
updation and Re-KYC of the concerned Region. Customers shall be categorized as
Low, Medium and High Risk category, based on the assessment and risk perception of
the Bank.

Risk categorization shall be undertaken based on parameters such as customer’s

identity, social/financial status, nature of business, activity, information about
clients’ business and their location etc. While considering customer’s identity, the
ability to confirm identity documents through online or other services offered by
issuing authorities may also be factored in.

4.16 Business continuity Plan: The Bank is committed to provide uninterrupted service to
its customers. This commitment extends to all activities from front office to back
office. Branches / Offices shall train and depute manpower to ensure routine work of
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the Branch is not hampered even in case of absence of any personnel. Branch
activities including replenishment of cash in ATMs or printing of pass book must be
carried out uninterruptedly. Continuity of service is a way to win customer
confidence and continue their loyalty. BCP includes the strategies, actions and
procedures to prevent disasters pro-actively as far as possible or else to manage the
consequences of a disaster. Necessary guidelines issued by the Risk Management
Department should be followed in this regard.

5. Customer related functions:

5.1. Working hours of Branch: In terms of Uniform Banking hours in Public Sector Banks
under reform agenda EASE-2.0, the customer timing in each state/UT is to be
maintained on three time sets, described as under, as decided by the respective
SLBC.

S.N. AREA BANKING HOURS

C 1 Timing Set-1 09:00 AM to 03:00 PM
u 2 Timing Set-2 10:00 AM to 04:00 PM
s 3 Timing Set-3 11:00 AM to 05:00 PM
t
Banking hours include both cash & non-cash transaction timing. Lunch Break of 30
minutes should be given to staff members in such a way that no staff member shall
be asked to work continuously for more than 5 (Five) hours unless given a break of
not less than half an hour. In case of Metro and Urban Branches, lunch break shall be
given on staggered basis in such a way that no counter shall be left unattended
during the customer working hours.

In areas where lunch break timings have been specified by the SLBC, the same should
be followed. The details of circulars are as under:

S.N. Details of circular Date Content

1 IC:01749-2019 17.10.2019 Uniform Banking Hours
2 IC:01768-2019 22.11.2019 Uniform Banking Hours-clarification

5.2. Commencement of Employee Working Hours: The working hours of the employees
starts 15 minutes before the commencement of business hours at all branches. The
Branch Manager and supervisory staff should ensure that members of staff are
available at the respective counters from the commencement of the business hours
and throughout the business hours, so that, there is no room for customer complaint.
The branches should ensure that no counter remains unattended during business
hours and uninterrupted service is rendered to the customers.

5.3. Customer service – Guidelines: Customer service has great significance in the
Banking industry. The Banking system in India today has perhaps the largest outreach
for delivery of financial services and is also serving as an important conduit for
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delivery of financial services. While the coverage has been expanding day by day, the
quality and content of dispensation of customer service has come under tremendous
pressure mainly owing to the failure to handle the soaring demands and expectations
of the customers.

The vast network of branches spread over the entire country with millions of
customers, a complex variety of products and services offered, the varied
institutional framework – all these add to the enormity and complexity of Banking
operations in India giving rise to complaints for deficiencies in services. This is
evidenced by a series of studies conducted by various committees such as the Talwar
Committee, Goiporia Committee, Tarapore Committee, etc., to bring in
improvement in performance and procedure involved in the dispensation of hassle-
free customer service. Such services are:

a. The branch should have adequate space, proper furniture, drinking water with
specific emphasis on pensioners, senior citizens, disabled persons, etc.
b. The Branch should display indicator boards at all the counters in English, Hindi as
well as in the concerned regional language. Business posters at semi-urban and rural
branches of Banks should also be in the concerned regional languages.
c. The branch should provide customers with booklets consisting of all details of service
and facilities available at the Bank in Hindi, English and the concerned regional
languages as per customer‘s request.
d. Branches should hold Customer relation program and periodical meetings to interact
with different cross sections of customers for identifying action points to upgrade the
customer service with customers.
e. Citizens Charter published by the Bank should be given wide publicity. Branches
should ensure that the same is made available to the customers readily on demand.
f. There should be proper arrangements at the counter to render prompt and courteous
service to customers and indicator boards displayed for different types of
transactions handled at the respective counters.
g. The behavior of the staff and the routine procedure followed by them should be such
as to inspire confidence in the mind of the customer that the working of the Branch
is efficient, straight-forward and clean and that any papers, documents, money
entrusted by the latter to the Branch staff will be duly accounted for and will be
safe. For this purpose, it is essential to ensure that there are no wrong debits or
credits to a customer‘s account, that bundles and packets handed over to the
customer in payment contain correct numbers of issuable currency notes and interest
charged on account is correctly calculated.
h. The customer should not be made to wait for an unreasonably long period and his
waiting period should be made comfortable.

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i. In Branches, an Enquiry Counter (MAY I HELP YOU Counter) should be opened to be
attended to by an experienced and well behaved staff member to guide the Bank‘s
customer to the right person for his work and the customer should not be made to
run about from one person to the other for his transactions with the Bank.
Inadequate or poor customer service combined with discourteous attitude of the
staff to the customers is the main cause for complaints to arise.

j. No new practice affecting general pattern of service or any curtailment in existing

services rendered should be affected without Central Office permission.
k. Branches should not employ/engage any individual, firm, Company, Association,
Organization or any other person for collection of Deposits or for selling of any other
Deposit linked products on payment of remuneration or fees or commission in any
form or manner, except to the extent permitted by Central Office.
l. Similarly, Branches should avoid accommodating unknown parties/brokers/agents
who approach with promise to mobilize deposits/ business for the Bank.
m. There should not be any delay in issuance/payment of Drafts. Outstation Cheques
should be dispatched promptly and realization Advices should be sent to customers
without delay.
n. Standing Instructions, if any, should be faithfully carried out.
o. Certificates for interest on deposit for income-tax purposes should be issued
promptly.
p. Branches should not give any cause, of complaint with regard to payment of pension
to pensioners and other allied matters.
q. Branches should also ensure to recover Service Charges for various services rendered
to the customers, unless the same is exempted, as per the rates of service charges
specified there for, from time to time.
r. Branch/Bank should provide for magnifying glass for the use of persons with low
vision, wherever they require for carrying out Banking transactions with ease.
s. Branches should ensure that there is barrier free access to persons with disabilities to
the branch premises and ATM. if required ramps need to be built for providing
access.
t. Branches are advised not to entertain any transaction based on telephonic instruction
of customers as per IC No.01597-2019 dated 21.06.2019 Guidelines regarding
execution of transaction based on telephonic instructions of customers and IC
no.02675-2021 dated 08.07.2021 on Caution- Do Not Initiate Financial Transactions
based on e-mails, SMS or Telephonic mandate.

5.4. Following information should be displayed at the prominent place of the Branch:

a. Service Charge
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b. Key interest rates on deposits & foreign exchange rates

c. Average Quarterly Balance requirements & charges for non-maintenance
d. Facility of nomination on all deposit accounts, articles in safe custody and safe
deposit vaults

e. Facility to accept/ exchange of soiled and mutilated notes

f. Facility to accept/ exchange coins of all denominations
g. Facility of immediate credit of outstation cheques upto Rs.15,000/-to accounts of
individuals conducted satisfactorily
h. Applicable timeframes for collection of local and outstation cheques as per Cheque
Collection Policy
i. Issue of an acknowledgement to the tenderer if a Bank note tendered at the Branch
is found to be counterfeit after stamping the note accordingly
j. Other services provided by the Branch
k. Acceptance of Direct Taxes
l. Acceptance of donations for PM‘s Relief Fund
m. Facility to open Public Provident Fund Accounts (at designated branches), Senior
Citizens Savings Scheme, 2004
n. Operating of Prime Minister‘s RozgarYojana/ other schemes sponsored by
Government of India and State Government
o. Facilities to offer SSI loans/products; to issue Kisan Credit Cards and to open `Basic
Savings Bank Deposit Account(BSBDA) & Basic Savings Bank Small Account(BSBDS)‘ are
accepted here.
p. Lending Rates(MCLR)to be displayed in the notice board
q. Grievance Redressal System —

• Postal address, telephone numbers & e-mail address of Regional Head

• Address of Chief Grievances Officer, CGM/GM (Operations Dept.)
• Address of Banking Ombudsman
Bank has come out with the instruction on redressal of grievances time to time,
the ICs issued in this regard are:

SN Details of circular Date Content

1 IC:07366 17.02.2021 Grievance Redressal Portal
on Banks
website.
2 IC:02445:2021 23.02.2021 Strengthening of Grievance Redressal
Mechanism of Banks
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3 IC:05528:2021 05.05.2021 Strengthening of Grievance Redressal –
Handling of OCRM Solution Package of
Branches & Offices
4 IC:2968:2021 30.12.2021 Grievance Redressal Policy 2021-22

r. Address of Chief Vigilance Officer of the Bank and Central Vigilance Commission, New
Delhi.
s. Updation of KYC in Legacy Accounts--to be displayed in the notice board as well as
ATM (to reiterate KYC guidelines and updation of KYC in pending legacy accounts
which are opened prior to 01.04.2010).

5.5. Customer meeting/Customer Service Committee Meeting:

a. The Customer Meet is conducted once in a quarter and Customer Service
Committee Meeting is held every month by all branches. The branches have to
report the deliberations conducted at these meetings to the Regional Office.
b. In addition to these meetings, the Zones have to organize special meet for
specialized class of customers such as NRIs and Farmers etc. to elicit their
requirements.
c. The Regional Offices have to ensure that the meetings are conducted by the
branches as per schedule and go through the details of the deliberations at these
meetings. The deliberations include the suggestions received from the customers,
suggestion for improving the customer service and the complaints about the
deficiency in service.
d. The Regional Offices have to analyze the feedbacks, complaints and suggestions
received at the Customer Meet and Customer Service Committee Meetings held at
branches and develop action plan for improving the customer service.
Please refer IC no.03370-2022 dated 21.06.2022 on Customer Service Committee
Meeting at all Branches/ ROs/ FGMOs.

5.6. Staff meeting: Regular staff meetings, as an effective HR communication tool,

provide an open forum to review business goals, revisit processes, redraw business
strategies and provide a platform to share gist of recent circulars/communications,
latest developments in the Bank and acknowledge job well done to facilitate team-
work. Staff meetings as a useful forum has been extensively used by the organizations
in general and Banks in particular for aligning current priorities and to foster
teamwork towards reaching common goals.

All branches, back-office units and Administrative units are required to conduct
staff meeting invariably once in a calendar month. Wherever possible, meeting
may coincide with the visit of Executives, if any, during the month. The
mandatory activities/topics of staff meeting is elaborated as under:

a. Gist of important communications from Top Management, especially message from

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MD& CEO /ED and Regional/Zonal Heads.
b. Summary of Circulars/Memoranda issued from Regional/Zonal/Central Office during
month.

c. Current performance vis-a-vis target, major achievements/challenges at

branch/office.
d. Dissemination of knowledge gained by staff in external/internal training/workshops
or any similar assignments.
e. Matters pertaining to Preventive vigilance measures, housekeeping & improving
customer service (administrative efficiency in respect of controlling offices).
f. Any other developments/matters to be discussed as decided by the Chair.

5.7. Decoy customer: Officers Authorized by Executives at ROs are visiting / required to
visit the Branches in informal attire as decoy customer to ascertain the level of
customer service provided at the Branches. The findings are collated and
rectification measures are accordingly adopted.

5.8. Compensation to customer: The Compensation Policy of the Bank is designed to

cover areas relating to unauthorized debiting of accounts, payment of interest to
customers for delayed collection cheques/instruments, payment of cheques after
acknowledgement of stop payment instructions, remittances within India, foreign
exchange services, lending, compensation for unauthorized Electronic transactions
under customer protection-Limited Liability of customer etc. The Policy is based on
principles of transparency and fairness in the treatment of customers(IC No.3161-
2022 dated 31.03.2022 Compensation Policy 2022-23).

5.9. Customer complaints and their redressal: Customer centricity is one of the core
values of the Bank. As a service organization customer service and customer
satisfaction is the prime concern of the Bank. Bank believes that Customer
Experience is the key to keep customers happy and thereby ensuring a long lasting
relationship with the Bank. Grievance expressed by customer serves as feedback
mechanism for bringing about improvement in quality of service delivered to
customers. However, Customer grievances are part of the business life of any
corporate entity and is inevitable, no matter how streamlined the business processes
are. It is therefore desirable that the Customer grievances are acknowledged and
dealt with effectively by developing an efficient system to ensure that complaints are
resolved quickly and accurately (IC No.02968:2021 dated 30.12.2021 Grievance
Redressal Policy).

5.10. Union Care – Handbook on customer complaints: Operations Department has issued
a handbook for the staff working at branches/offices for effective handling of
customer queries, feedback and complaints (IC No.02462-2021 dated 04.03.2021
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Union Care –Complaint Management Handbook and IC No.02818-2021 dated
30.09.2021 UNION CARE - Complaint Management Handbook (Version 2.0)).

5.11. EASE agenda:

5.11.1. Dedicated Counters/Preference to Senior Citizens, Differently abled persons:
Branches are advised to provide a clearly identifiable dedicated counter or a counter
which provides priority to senior citizens & people who are differently abled person
including visually impaired.

5.11.2. Ease of submitting Life Certificate: As per extant guidelines issued by Department of
Government and Bank Accounts, in addition to the facility of Digital Life Certificate
under “Jeevan Praman” Scheme, pensioners can submit physical Life Certificate form
at any branch of the pension paying Bank. It is, therefore, advised that branches
should ensure that when a Life Certificate is submitted in any branch, including a
non-base branch, the same should be updated/ uploaded promptly in CBS by the
receiving branch itself, to avoid any delay in credit of pension.

5.11.3. Cheque Book Facility:

a. Branches should issue cheque books to customers, whenever a request is received,

through a requisition slip which is part of chequebook issued earlier or request
received by any other mode.
b. Branches should not insist on physical presence of any customer including senior
citizens and differently abled persons for getting cheque books. Branches should
preferably advise the customer to provide communication address correctly while
giving cheque book request, so that the cheque book can be delivered to the address
given by the customer directly.

5.11.4. Automatic conversion of status of accounts: Branches are advised to feed the date
of birth in the account master correctly so that a fully KYC compliant account will
automatically be converted into a ‘Senior Citizen Account’ once the customer
becomes senior citizen, based on the date of birth available in Bank’s records.

5.11.5. Additional Facilities to Visually Impaired Customers: As per Paragraph 9 of RBI

Master Circular DBR.No.Leg.BC.21/09.07.006/2015-16 dated July 1, 2015 on
Customer Service in Banks, it is advised that the facilities provided to
sick/old/incapacitated persons shall also be extended to the visually impaired
customers i.e. the operations in these accounts should be permitted through
identification of thumb/toe impression/mark by two independent witnesses and
authorising a person who would withdraw the amount on behalf of such customers.

5.11.6. Ease of filing Form 15G/H: Branches are advised to provide senior citizens and
differently abled persons Form 15G/H once in a year (preferably in April) to enable
them to submit the same, where applicable, within the stipulated time.
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5.11.7. Customer Service Committee Meetings: Customer service committees must be

constituted at all branches/ROs/FGMOs with representation from all sections of
customers especially Senior Citizens, Pensioner, Ladies and Differently abled.
Customer Service Committee meeting must be held at branches/ROs once in a month
on the 15th of each month or on the previous working day in case the 15th is a holiday.
At FGMOs it should be held once in a quarter. Meeting should be held for sharing
performance of the Bank, showcasing new products and services with their benefits,
to obtain views, observations and suggestions of the customer pertaining to product
and service. Brief introduction on cyber security / Information security / security of
digital products is to be provided in all meetings for safeguarding the customers from
cyber Risk / Cyber-attacks. Necessary support can be obtained from ZCC / RCC /
CISO office.
Branches should observe, without fail, Customer Day on 15th of every month
(between 3:00 p.m. & 5:00 p.m.) or on preceding working day, if 15th happens to be
a Saturday/ Sunday or a Public Holiday.
Branches should display a banner on the preceding working day to the effect that
Customer Day will be observed on the 15th of the month (or on preceding working
day as the case may be) / display a notice of the meeting.
The All India Customer Service Meeting should also be organized as per policy on
Grievance Redressal (IC 02968:2021 dated 30.12.2021) at quarterly intervals with
corporate presentation received from Central Office.

5.11.8. SOP of Meeting:

a. At Branches, the Customer Service Committee should consist of the Branch Head, one
member from the Officer staff, and one member from the Award staff. The
committee‘s strength can be increased to represent key departments in case of
larger branches.
b. However, all members of the branch should get opportunity for participating in the
deliberations and extending their suggestions/views.
c. Customers should be invited by rotation and may preferably represent a cross section
of the customer base of branch like senior citizens, pensioners retail customers etc.
d. Segments such as traders, SB account holders, depositors, women, senior citizens,
pensioners etc. should be given due consideration in the selection.
e. Senior citizens usually form an important constituent in Banks; a senior citizen may
preferably be included therein. It is also desirable to include a differently-abled
customer in this committee
f. The Committee should consider among other things, improvements in the systems
and procedures to eliminate delays in rendering service to the customers.
g. Minutes of Meeting should be prepared & upload online on portal provided in UBINET.

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h. The minutes of the committee meeting should be drawn up and details should be
kept on record for scrutiny during visits by RBI and the Bank‘s auditors.
i. Compliance in this regard is mandatory and lapse, if any, is viewed seriously.
j. The minutes will be placed before Regional Customer Service Committee Meeting.
k. Follow-up action should be taken promptly.
l. Invitees for such meetings should be carefully selected to ensure a proper mix of
customers from different business segments.

5.12. Death claims: POLICY ON SETTLEMENT OF DEATH CLAIM 2022-23 vide IC

No.03164:2022 dated 31.03.2022 is in order to facilitate expeditious settlement of
claims and to ease out the process in order to pass on the benefits to the legal
heirs/members of the bereaved family in a seamless and time bound manner. The
policy covers the under mentioned areas:

a. Methods of settlement including payment to nominee, payment to legal heir with

legal representation and payment to legal heirs in absence of legal representation.
b. Procedure for payment and delegated powers of settlement of death claims
c. Release of assets of deceased customer to legal heirs/claimants
d. Settlement of claims in respect of missing persons, safe deposit locker, through legal
representation, claims of partnership accounts.
e. Time norms for settlement of claims
f. Interest payable on term deposit in deceased depositor’s account
g. Introduction of new menu (DCFE) in Finacle to capture the details of death claim
application received from the legal heirs/claimant of deceased customer.
This will facilitate prompt and speedy settlement of claims and enhances the image
of the Bank and will strengthen our bond with surviving family members. This policy
encompasses system and procedure to settle the death claims received with respect
to Deposits, safe deposit lockers, safe deposit custody of articles, missing persons
and release of title deeds in case of mortgaged properties.

h. Introduction of death claim portal to lodge the claim online by claimants/Nominee

and further settlement by respective delegated authority.

S.N. Details of circular Date Content

1 IC:2807-2021 28.09.2021 Web Based Portal for Speedy death
claim settlement
2 IC:3164-2022 31.03.2022 POLICY ON SETTLEMENT OF DEATH
CLAIM 2022-23

5.13. Availability of basic amenities to customers in Branch: It is a responsibility of the

Branch Manager to provide basic amenities like availability of various forms, sitting
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arrangements, drinking water etc. to customers in Branch with a help of concerned
Regional Office.

5.14. Customer Care Unit (CCU): A centralized cell is created in the department which
specifically looks into and monitors all BO complaints, SFIO/FEMA/CBI/Tax
Authorities Mails, attending CPGRAM/DPREG complaints, complaints received through
phone calls (at Call Centre), complaints received through CGO mail & OCRM Package.
The Grievance Redressal Mechanism has been further strengthened with the
implementation of CRM EDGE which is an omni-channel Customer Grievance Redressal
Mechanism. The roles and responsibilities at each level of Grievance Redressal
Mechanism has been clearly identified and defined. Mechanism to resolve the
complaints and Standard operating Practices has been defined at all level to speed up
the process of grievance redressal.
The revised policy outlines the framework for addressing customer grievances. It
aims at minimizing instances of customer complaints and grievances through a well-
structured escalation matrix and pre-defined TATs depending upon the nature of
complaint. The purpose is to ensure prompt as well as effective redressal of
customer complaints. Key concept covered in the policy is as under:
a. Definition of query, service request, complaint, customer, active/passive customer
and principles of grievance redressal.
b. Internal machinery to handle customer complaints/grievances – Complaint
Management system, Customer Service Committee of the Board, Standing Committee
on Customer Service at each administrative office, Branch level customer committee,
functions of Internal Ombudsman, Grievance Redressal Officers at Regional Office
(RGRO) and at Zonal office (FGRO), nodal officer and other designated officers to
handle complaints etc.
c. Customer Care Unit: A robust unit of the Bank acting as backbone of entire grievance
redressal machinery. The policy covers structure of Customer Care Unit, Escalation
matrix, Root Cause Analysis, Tips for handling customers, new initiatives etc.
d. Roles and responsibilities at field and Central office level, support of legal dept. and
lay officer in case of required vetting and appeal.
e. Reasons of complaints, type of complaints, source of complaints, severity of
complaints, Principles of Grievance redressal, capturing of complaints.
f. Grievance redressal under PMJDY, grievance redressal for intermediary under
National Pension Scheme (NPS), Digital transactions, BO complaints. etc.
g. Policy also provides details of all the mandatory display requirements at branches/
administrative office level.

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(i) Structure of RGROs/Zonal GRO’s:

Level-1 - Branch
Branch Head/Dy. Branch Head/Call Centre

Level - 2 - Regional Office

Regional Head/Dy. Regional Head/GRO at RO

Level - 3 - FGM Office

FGM /Dy. Zonal Head/GRO at FGMO

Level - 4 - Central Office

CCU/CGO

The Contact details (Direct Line as well as E-mail ids) shall also be displayed in
Bank’s Website for Central Office and Zonal Office Level.

6. Supervision and Monitoring :

6.1 Responsibilities of Branch head: The Branch Head is required to take charge of the
branch to which he/she is posted maximum within 7 days on joining the Branch. He/She
should submit the Charge Taken Report in time and ensure that all the irregularities
pointed in the report are rectified as soon as possible with the assistance of outgoing
Manager.

The Branch Head is responsible for the smooth functioning of the branch, as well as
identifying business opportunities for the development of the branch. He should ensure
that the Branch Ambiance is well maintained, cleanliness is observed, regulatory boards
are displayed in the Branch Hall and records are maintained properly. He should ensure
that the staff members are maintaining punctuality and discipline. He should motivate all
the staff members to participate in business development and supportive activities. He
should hold branch meetings, customer service meeting at regular intervals to review the
branch operation and customer satisfaction.

The Performance of the Branch Head is reviewed by the Regional Office under the
following key parameters:

a. Growth in average CASA visa vis. Total Deposits

b. Growth in advances visa vis. Retail, MSME and Agriculture
c. Activation of Dormant Account, Savings and Current
d. Reduction in NPA visa vis. Recovery
e. Increase in Profitability of the Branch
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f. TAT in resolution of complaints,
g. Cross Selling of Third Party Products, such as SUD, Religare, etc.

6.2 Record keeping and maintenance: In accordance with the rules of preservation of
records and as per Government of India directives, our Bank has laid down a policy on
Documents handling and retention policy. It provides standard procedures for storage,
retrieval and disposal of all important documents to be preserved as per statutory and
regulatory requirements as amended from time to time. It covers the table of content
given herein below:

S.N. Topic Covered

1 Record Keeping and Maintenance,
2 Types of Records: Current Records, Old Records, Security Documents and
Title Deeds etc.
3 Storage of Records
4 Retrieval of Records,
5 Safe Keeping and Handling of Security Instrument/Documents
6 Removal and Disposal

6.2.1 Current Records: As per our Bank’s policy, any record, which is less than 3 years old
should be treated as current records. Such records should be preserved in a secure
place by the respective branch/offices to whom the record/documents pertain, at
their premises.

6.2.2 Old Records: As per policy, all records which are older than three (3) years should be
treated as old records. Regional Head within their jurisdiction and Head of Support
service Department at Central Office and Head of Department of Information
Technology at Central Office will identify and approve place of storage to keep such
old records. Such storage place should be top grade constructed, fire proof and well
secured. Bank has short listed three vendors for collection, storage and preservation
of old records. The record will be shifted to the vender’s facility.

6.2.3 Security Documents and Title Deeds etc.: As a part of business, branches obtain
loan agreements, security documents; take deposit of title deeds of properties
mortgaged to the Bank etc. These documents are to be entered in safe in safe out
register at the branch and are to be kept in safe custody under dual control. Any
access to such documents should be recorded in safe in safe out register with under
the initials of joint holders/custodians.

6.2.4 Storage of Records: Record in physical form will be preserved for the prescribed
period in branches/offices or off site store room after proper indexing. Such off site
store room should be under the control of Branch or Administration Department, in
case the record pertains to branch or RO/FMGO respectively. In case, record pertains
to Central Office, the store room shall be under the control of Support Service
Department, Central Office.

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a. Wherever records are created in any media other than paper, there shall be at least
two back up records in the same media or any other suitable media. Such back up
shall be updated from time to time and the system will provide for audit trail or
system log, for at least 12 years.

b. In Core Banking scenario, entire data of all branches is maintained at Centralized

data base in Data Centre. In view of the criticality of the data, Bank has maintained
a replica of data center at another location called Disaster Recovery (DR) site.

c. In case of records prior to migration to CBS, branches should maintain a record of the
back-up data held in the form of a register, duly authenticating the entries therein.

d. Important data in systems including the data of individual users must be backed up
for emergency situations like system crash.

6.2.5 Retrieval of Record: Branch/Office/Department in Central Office should submit a

request for required documents with clear purpose. Request will be sent to Regional
office/Support service Department with proper authentication and one copy to be
addressed to concern store room. Request will be considered for processing by the
concerned office within 24 hours.

a. In case where records are to be taken in possession by the Police/Government

authorities, a written request has to be taken and an acknowledgement should be
obtained from recipient in respect of the particular record to be taken possession of.

b. Records in CBS system will be retrieved at Branch, data center or DR site as the case
may be and the request in that regard shall be given to the person in charge of the
system by users.

S.N. Details of circular Date Content

1 IC 03165-2022 30.03.2022 DOCUMENT HANDLING & RETENTION
POLICY 2022-23

c. Support Service Department vide their instruction circular No.10077 dated 11th
October, 2014 had informed the details of empanelled service provider for offsite
record management (old records).
S.N. Name Email address
1 M/s Capital Business Sysstem Ltd., cbsl@cbsl-india.com
(CBSL)
2 M/s Writer Information Management ims.mum.nrl@writerinformation.com
Services
3 M/s OEC Records Management customerservice@oecrecords.com
Company Pvt. Ltd.,

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6.3 Mandatory Report and Exception Reports:

6.3.1 Mandatory Report: All Branches/controlling offices are required to generate Mandatory
report through Finacle menu MNDTRPT preferably in the morning, but, before going for
the day end. This report gives many valuable reports which enables branch manager/
controlling offices to monitor the day to day transactions and monitor various
parameters such as Suspense, sundry, POB, exceptional report etc. to ensure safety of
the Bank’s funds and take corrective actions, if required, immediately on the very next
day of transaction.

6.3.2 Exception Report: All Branches/controlling offices are also required to generate
exceptional report through menu EXCPRPT preferably in the morning, but, before going
for the day end to generate reports on transactions where exceptions have been
occurred.

Mandatory and Exception reports generated on daily basis are required to be scrutinized
and kept in record. Regional Head and staff of Regional offices, who are visiting the
branch, should check such record & ensure that Mandatory reports are generated and
scrutinized on daily basis.

S.N. Details of circular Date Content

1 IC:08445 23.09.2009 Revised Guidelines on Mandatory Reports
through Finacle
2 IC:08633 29.04.2010 Additional Guidelines on Mandatory
Reports Generation and Preservation of
Mandatory Reports
3 CBS letter : 00142 30.01.2012 Finacle Mandatory Reports
4 IC:02006 16.12.2013 Mandatory Report -MNDTRPT

6.4 Exit interview for closure of account: In today’s competitive scenario, it is very much
necessary to expand our customer base and for this Branches are required to canvass
new accounts. However, it was found that even though the new accounts are canvassed,
customer base has not grown in the same pace. The reason behind the same is found to
be “Closure of Accounts”. Even in some cases, Branch managers are also not aware of
the closure of accounts. It is fact that cost of acquiring a new customer is higher than a
cost of retention of existing customer.

To understand the exact reason of the customer’s exit, Top management has laid down
a procedure along with exit interview. In case any customer wishes to close the
account, it will be done so by the approval of Branch head only. Branch manager will
ascertain the reason for closure of the account and will try to persuade the customer by
accommodating him in such a way that he can be retained in Union Bank Family only. A
brief report on interaction with customer (Exit Interview) will be prepared and held in
record. Branches are required to send the information on accounts closed during the

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month to the Regional Office in prescribed format. The Regional Head will analyze the
response of the customer and initiate necessary corrective action and apprise
FGMO/Operations Department C.O.

For details and formats, please refer following circulars.

S.N. Details of Date Content

circular
1 IC:07125 17.03.2005 Customer Service Closure of accounts
2 IC:07777 29.09.2007 Exit Interview
3 IC:01735-2019 09.10.2019 Exit Interview at the time of Account
Closure

6.5 Inspection and Audit: For all audit related information, please be guided by latest
audit policies by Audit section.

6.6 Office Accounts and their purpose: A general ledger contains all the accounts for
recording transactions relating to assets, liabilities, owners' equity, revenue, and
expenses. In modern accounting software, like Finacle, the general ledger works as a
central repository for accounting data transferred from all subsidiary ledgers or modules
like accounts payable, accounts receivable, cash, fixed assets, expenses and income.
The general ledger is the backbone of any accounting system which holds financial data
for an organization. The collection of all accounts is known as ledger account. This may
be a large book or may be maintained in accounting software system.

As Bank follows the double entry system of accounting, every debit entry has a
corresponding credit entry of equal amount, the sum total of all the heads of accounts
the Bank as per general ledger at the end of the day should be ZERO. The double-entry
bookkeeping system helps ensure that the general ledger is always balanced.

The main heads of accounts of the general ledger may be further subdivided into
subsidiary heads for grouping of the accounting entries of similar nature to a common
head, to have proper control.

At the time of yearly closing in March various sub-heads of Profit and Loss Account
should be closed and transferred to Profit and Loss Account opened in the General
Ledger and Net Profit or Loss worked out. At branches / offices all sub-heads of Profit
and Loss A/c should be transferred to Profit and Loss account and Net Profit or Loss
transferred to Central Office. The outstanding balances of remaining accounts should be
carried forward to the next year.

Various types of office accounts are as under:

6.6.1 Bills Payable Accounts: Separate accounts have been opened in General Ledger
Heads. Entries under the above General Ledger Heads are controlled under various
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subsidiary accounts. Nomenclatures of corresponding Heads of Accounts in Subsidiary
Ledger clearly indicate the type of transaction that should be put through each of these
Accounts.

For Bills payable accounts, Nomenclatures of corresponding Heads of Accounts in

Subsidiary Ledger clearly indicate type of transaction that should be put through each of
these Accounts.

6.6.2 Sundry Deposit Accounts: Sundry deposits accounts are used by branches/offices for
crediting any amount received from customers, other branches, other Banks etc, for
which credit to respective accounts could not be done due to want of full particulars.
The amount credited to Sundry deposits accounts should be reversed to correct accounts
as early as possible. The first entry should be credit and the balance in these accounts
can be zero or credit balance. Debit balance is not permitted in Sundry Deposit
Accounts.

The nomenclature of the Heads of Accounts indicate the nature of transactions which
can be put through these Accounts, and the remaining Accounts will be put through
"Sundry Deposit Accounts (Others) Miscellaneous.

All vouchers of debits to Sundry Deposits Account should bear the signature of two
authorized officials, one of whom should be the Branch Manager/Dy. Branch Manager or
the Accountant. Full Particulars of original entries must be given in the Sundry Deposits
Account entry and when entries are reversed, brief particulars of reversal/adjustment
should be entered, indicating the date of reversal against the original items.

6.6.3 Digital Authority Cheque:

a. For transactions other than direct credit to customer accounts, for which other
Branches/Departments of Central Office are to be credited, Digital Authority Cheque
will be issued by the Remitting Branch.

b. Only Intersol credits as above are allowed in this account.

c. Debit to this head (Digital Authority Cheque Account) should be done by the branch
on which the Digital Authority Cheque (DAC) is drawn.

d. Branches to reverse all the entries in the account before CSOLOP and ensure Zero
balance in the account, otherwise CSOLOP will not be allowed.

e. The system of DAC facilitates quick transfer of funds for non-customer

accounts/claims

f. Work flow of the Digital Authority Cheque:

I. Originating Branch:

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i. Debits the respective account and credits the Digital Authority Cheque account of
target branch using menu option TM for transfer of proceeds/transfer of funds.
ii. The target DAC account will target Sol Id+8090001000 e.g. for Sol 33260 it will be
332608090001000.
iii. The full particulars are clearly entered in additional detail screen for easy reversal
by the target branch.
II. Responding Branch (Target Branch):

i. Branch to check account to find out any credit is received in DAC account on daily
basis.
ii. If any entry is received, see the additional details of the entry for the details of the
credit.
iii. Then debit the DAC account and effect the credit to appropriate accounts.
iv. Branch to reverse all the entries before CSOLOP
III. Precautions :

i. Care should be taken to give correct DAC account number of the target branch as the
originating branch cannot rectify wrong credit.
ii. It is mandatory to enter all particulars in additional detail screen to ensure proper
responding of entry by the Target SOL.
iii. The branch should reverse all entries before CSOLOP and ensure zero balance in the
account
iv. If any wrong credit is given by a branch, the responding branch on consultation with
the issuing branch should either refund the amount to the originating branch or
redirect the funds to correct beneficiary branch.
6.6.4 POB Accounts: When occasion arises for making payment on behalf of other
branches, the amount should be paid by debit to an account called "Payments on
Behalf of Branches (POB)”. GL Code for POB account is 80300.
a. The persons responsible for raising the POB claim should ensure that the POB Account
is debited at their end after complying with all the required formalities to enable the
responding Branch or Department to respond the same without entering into
correspondence.
b. Branches will pass separate entries for each transaction in POB Account and will not
pass consolidated entries for enabling the branches for adjustment of individual
entries easily.

c. The outstanding in the POB Accounts should be followed up to ensure that no entry in
these accounts remains outstanding for more than 15 days.

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d. POB claim should be responded within 15 days from the date of POB by the
respective branches/offices, otherwise CSOLOP will not be allowed by finacle from
15th day onwards.
e. While nomenclature of POB Accounts indicates the nature of operations which can be
put through each of these accounts, the procedure relating to some of the Heads of
Accounts, which are operated more often, are as under:
e. i) POB A/C Foreign Exchange: When a Branch pays under Agency Arrangements a
Telegraphic Transfer/Mail Transfer or Demand Draft drawn on it by Overseas Banks,
which do not maintain Rupee Account with the Branch or with which the Branch does
not maintain Foreign Currency Account, the Branch will debit "POB Account - Foreign
Exchange" and send the Wire to the Branch which maintains the account of that
Foreign Bank seeking reimbursement through the Authority Cheque. The entry in POB
Account will be reversed on receipt of the Digital Authority Cheque.
When a Branch has to pay under letter of credit or otherwise on behalf of a Foreign
correspondent, it will pay to the debit of "POB Account Foreign Exchange and follow
the same procedure as mentioned earlier.
f. ii) POB A/C Cash Remittances: If cash is remitted from a branch to another branch or
Currency chest, the remitting branch will debit its POB a/c Cash Remittances and
reverse that particular entry on receipt of Digital Authority Cheque. For nullifying POB
cash remittance maximum limit should be 3 days.

e.iii) POB A/C Department of Central Government: Payments related to accredited

departments of central government are controlled under these POB heads of accounts.
Before raising POBs on nominated branch, branches should ensure that original paid
cheques/instruments are sent to the responding branch.
e.iv) POB A/C Central Accounts Department:
a. The Authority Cheque system does not permit any originating debits and hence in
respect of items where debits are to be made by Branches to Central Office, the
Branches have to control such items under "POB Account Central Accounts"
(8030025000). However, Payments made on behalf of Support Services Department
and Operations Dept. (Previously GBOD) are controlled in POB A/c Support Services
and POB A/c Personal Banking.
b. All direct debits hitherto to be made by Branches by way of debits to C.O. Account
will be made through "POB Account Central Accounts." only and the requisite papers
along with the POB claims are to be sent to the respective Departments in Central
Office/branches, calling for Digital Authority Cheques.
c. The concerned Departments, after scrutinizing the papers, will issue the Digital
Authority cheques for that amount to the said Branches.
d. Branches will respond Digital Authority Cheques & adjust their "POB Account-Central
Accounts.
e. Similarly the concerned Departments in Central Office have to debit "POB Account –

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Central Accounts for the amounts to be received or recovered from the branches and
send the claim to the respective Branches calling for Authority Cheques. On receipt
of Digital Authority Cheques from the Branches concerned the above POB Account
will be adjusted.

e.v) POB A/C Staff:

a. T.E. Advance paid to officials from other Branches/Offices/Inspection Department
etc. should be controlled under Head "POB Account Staff" and followed up for
realization within15 days.
b. In cases where Branches are required to recover certain amounts on account of
Travelling Expenses, Leave Fare Concession, Festival Advance, etc. upon transfer of
staff members to other Branches, exchange of soiled/ mutilated notes, opening of
new Branches/Offices, they should open separate accounts styled as "Suspense
Account- Others" in their Subsidiary Ledger and debit the amount to this Account.
The outstanding entry should be followed up with the concerned Branch Office.
e.vi) POB A/C Clearing:Payments related to clearing on behalf of branches are controlled
in this account.

6.6.5 Suspense Account: Debits to Suspense Account should only be made in respect of
such items which cannot immediately be accounted for under any of the regular
Heads of Accounts. Suspense Account heads are created for specific purpose and
should be used for that purpose only. The same should not be misused for any other
purpose. Debit of Suspense account at branches should be permitted by the Branch
Head only. In case of absence of the Branch Head it should be permitted by the
second man in command. Only four Suspense Accounts will be maintained in the
General Ledger:

i. Suspense Account - Clearing Cheques on Hand and Clearing Adjustment

ii. Suspense Account - Others
iii. Suspense account – Branches
iv. Suspense account - Options

a. These will control various Subsidiary Accounts; commonly used codes are listed
above. While the nomenclature of Heads of Accounts clearly indicate the nature of
transactions which could be put through these Accounts, it must be clearly
understood that these accounts will not be used for debiting loans and overdrafts
to members of the staff or to public.
b. All vouchers of debits to suspense Accounts should bear the signature of two
authorized officials, one of whom should be the Branch Manager or in his absence the
officer who is second in command. All debit vouchers for cash payment should be
properly receipted and in case of transfer entries particulars of disposal should be
indicated.

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c. Full transaction particulars should be mentioned while creating an original entry and
also while reversing the entries, brief particular and date of original entries, which is
being reversed should be recorded.
d. The pendency level of outstanding in various Suspense Accounts would be reviewed
by RO/ZO/CO on ongoing basis and on the basis of quarterly reports submitted by
branches. In case of Suspense Account, after approval from appropriate authority for
write off, the amount is claimed from Central Office. Branches should however,
ensure that all efforts are made to get the outstanding entries duly adjusted, before
seeking approval for write off/transfer of such entries to Central Office.

Pertaining to “B” category Branch: Treasury Branch is passing any gains/loss on

account of early delivery/cancellation of Forward Contracts, which are generated
through the Finacle Treasury System and the corresponding entries are passed to the
Account No. (SOLID) 8250035000 in the name of " Suspense A/c – Income DC/ PP
TRANSFER" of the respective branch. The branches have to pass the gain/recover the
loss amount to/from the customer's account on the same day itself. Forex Dept. of
the branch must monitor and adjust the entries in this account on daily basis.
Further, any issue related to incorrect charges/gains passed to the customer's must
be brought in the knowledge of DFB/Treasury in timely manner to resolve the issue
at the earliest. The Branch must obtain a request letter from customer in this regard.
Suspense Accounts need a close and careful watch. It is therefore necessary that:
i. Operations in these accounts are as few as possible
ii. Each operation is very carefully scrutinized
iii. Credit balance is not permitted in Suspense accounts.
iv. No operation in the account is allowed unless it is expressly approved and
authorized by the Branch Manager under his full signature on the relative voucher
v. The Manager keeps a watch over long outstanding entries in these accounts and
takes effective steps for their early adjustment.

In case of addition/deletion of office accounts,it should be recommended from Regional

Office and Field General Manager Office and then forwarded to Operations department.
Please refer following circulars for detailed information on office accounts:
S.N. Details of Date Content
circular
1 IC:03413: 08.07.2022 SOP Internal/Office accounts.
2022
2 IC:03205: 01.04.2022 Internal office accounts Policy
2022
3 IC:2803:2 21.09.2021 Standard Operating Procedure (SOP) for
021 Operation and Review of Internal/Office
Accounts

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6.7 Transfer of Old Entries in Office Accounts: Transfer of old outstanding entries for
more than 2 years in all impersonal accounts such as Sundry Deposit Accounts, Bills
Payables Account DD/TT/MT Payable to Central Office has been discontinued and they are
controlled at branch/office level itself. In case of Suspense Accounts, after approval for
write off, the amount is to be claimed from Central Office.

S.N. Details of Date Content

circular
1 IC:00965- 28.09.2017 Change in Process Transfer of old outstanding
2017 entries above 2 years in Sundry Deposit Accounts
and Bills payable Accounts to Central Office.

7. Safety and security:

7.1. Precautions during closing of Branch: The collapsible gate at the entrance should
be closed & locked from inside after the Banking hours and entry to be strictly
regulated by identification.
Before locking the main entrance at the end of the day, all rooms should be checked
to ensure that no one is left behind. It should be ensured that all electrical switches,
except those required to be kept ON, are switched off, all windows are closed and
latched from inside and doors of all the rooms are locked. Ensure that flames of
candle or stove (if used) are extinguished. Check that all lights, fans, switches,
computers, printers etc. as well as air conditioners and heaters are switched off.
Check that all table drawers and Almirah’s are locked. The main entrance
door/gate/shutter should be locked in presence of an Officer. The electronic Alarm
System should be changed to Night Mode.
7.2. Basic Security Measures in Branch:
7.2.1. Incidents of robbery, burglary and other forms of crimes in the Bank necessitate a
proactive approach towards security from the staff members in general and Branch
Head in particular. In the past forced entries have been made at night by cutting the
grills of windows/ventilators, removing door latches and locks and breaking walls.
Even Strong Room doors and Cash Safes have been cut with gas torches resulting in
loss of cash as well as jewelry. It is essential that branches examine their location,
protective structures in the building and implement appropriate security measures.

7.2.2. Branch premises should be selected while keeping in mind the safety and security.
The site should not be isolated or should not be in crime prone area. If it is in the
proximity to police station, it is preferable, if it is not, care should be taken while
selecting the branch like it should be in public area. Security officer must be
consulted while selecting the branch premises.

7.2.3. The building infrastructure at branches provided should offer maximum resistance
to ingress by criminals. Padlocks should be of good quality manufactured by reputed
companies and preferably should have at least five levers lock at doors inside the
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premise and seven levers lock at main entrance. Doors not in use and other
unnecessary openings and windows should be closed permanently by walling them up.
7.2.4. Entry into the Branch should preferably not be through a common entrance that
provides access to other offices / shops / residential premises. The Branch should
preferably have a single entry and exit. The main entrance should have a collapsible
gate and rolling shutter with embedded central lock. Other entrances should have
either collapsible grill or rolling shutter besides wooden doors. The collapsible gate
of the main entrance should be closed immediately after the close of Banking hours
and other entrances should be kept permanently closed and used only during
emergency or during a special requirement. In order to restrict entry/exit of persons
at the main entrance to one person at a time during Banking hours, the collapsible
grill gate should be kept partially opened using a chain and lock.
7.2.5. Electronic Alarm System: All branches should have electronic alarm systems with
appropriate sensors/switches and the system should always be kept in proper working
condition. The alarm system should not only be kept 'ON' always, but should also be
kept in appropriate mode, i.e. Day or Night mode as applicable to working hours and
non-working hours respectively. There should be an auto-shutoff feature with timer
in the System to silence false alarms, if any, within 10-15 minutes. Staff must be
familiar with the operation of Alarm System and location of its switches in the
Branch. All alarm system should be covered under Annual Maintenance Contract
(AMC) with reliable firms.
7.2.6. CCTV (Closed Circuit Television): All Metro, Urban, Semi-urban and rural branches
should have CCTV systems. New Branches and existing branches undertaking
installation/replacement of CCTV System will be installed with a minimum 16
channel CCTV system with required number of CCTV cameras to cover all
vulnerable/vital areas within and outside the branch premises. The CCTV system
should have HDD capacity of storing minimum 90 days recording without a break at
all times within the system. All CCTV cameras will be of infra-red (IR) type. The
System will be always connected to the UPS Station of the Branch.

7.2.7. Relationship with Landlord, Police, Fire Department, Vendors, Concurrent &
statutory auditors etc. Landlords, police, fire department, vendors, auditors etc.
play a vital role in maintaining and running the branch smoothly and without any
disruption. Branch should establish and maintain a cordial relationship with all of
them & should avail their services as per the need.
a. Branch should ensure timely payment of the rent of the premises, renewal of lease as
per the Branch premises lease deed/contract.
b. Branch should maintain good relationship with the nearby Police station, nearby Fire
station and their in-charge. Branch should also keep and display the phone number of
nearest Police station, fire station and in-charge of the same at the prominent place
of the branch. This will help in time of exigencies/emergency.

c. Vendors of various services/Goods maintain the branches and ensure the smooth
functioning of various infrastructures. Branch should keep the contact numbers of
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various vendors/AMC holders handy and should lodge service requests immediately as
and when required.
d. Internal and External Auditors plays an important role in maintaining the quality of
the business. They inspect the procedures and practice of the branch and point out
deviations from the policies/regulations, irregularities, malpractices, leakage of
income etc. and ensure sound quality business of the branch. Therefore, branches
should ensure that the auditors are given full co-operation and should not be
misguided. Further, branches should not be obstacles in auditors’ duty or never try to
hide any vital information.
e. All the stakeholders working in the sound health of the branch and in turn in the
prosperity of the Bank. Hence, branches should always establish and maintain a
healthy bond between them.

7.2.8. Fire Safety Equipment’s and Upkeep: An outbreak of fire may result in grave loss of
life/property, disrupt business activities and pollute the environment. The Fire
Safety Framework forms part of the overall Physical Security & Fire Safety (PS & FS)
Policy of the Bank.
Every Branch/Offices shall be provided with fire detection and alarm system
consisting of smoke/heat / flame / LPG leak detectors and manual call points
connected by appropriate cables to main control panel and the equipment in use.
The control panel shall have a built in GSM / Landline based Auto Dialer facility
capable of dialing at least eight stored telephones numbers and deliver pre-recorded
messages, whenever the panel gets activated.

S.N. Details of circular Date Content

1 IC:00083 31.03.2022 Physical security and fire safety Policy
2022-23
2 IC:00064 29.06.2020 Basic Security Measures in a Branch

7.2.9. Cyber security/Information security: Keeping in view the business requirements,

100% branches and offices were computerized. With the implementation of
technology, associated Risk i.e. Cyber Risk and Technology Risk is increasing. For
effective monitoring and addressing the risk, CISO office is established in the Bank.
This department is monitoring the security of the Bank on 24x7 through Security
Operations Centre and taking corrective actions for the observed weaknesses.
Bank is maintaining latest tools for protecting the environment. Some of the security
controls suggested are as under:
a. Physical security
b. System security
c. Password security
d. Clean desk security
e. Network security
f. Data security and maintaining confidentiality of customer data

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g. Regular updation of Patches and antivirus in system
h. Staff awareness
i. Customer awareness.
CISO office is regularly sending alerts and awareness messages to branches/office.
For the purpose of cyber awareness, CISO office is doing the following activities
a. Training programs through staff college
b. Cyber security Bulletin
c. Fortnightly cross word quiz
d. Displaying cyber security messages through NEDU (network electronics display
units)
e. Conducting security awareness surveys
f. Union Gyan Kasauti online quiz on quarterly basis
g. Daily/weekly/monthly messages through mail.
h. Display of posters at prominent places at CO / other offices / branches / ATM
locations etc.
i. Online (e-learning modules) on information /cyber security. (Mandatory course)
j. My cyber hygiene and user risk profiling.
k. Security awareness programs through Kaizala.
l. Conducting phishing /table top exercises.
m. Cyber talk by eminent professionals

Please be guided by Cyber Security Policy 2022-2023 vide IC no.03028-2022 dated

04.02.2022 and Information Security Policy 2022-2023 vide IC no.03027-2022 dated
04.02.2022.

8. Branch support system:

8.1. Ambience of Branch: Branch Head should ensure that proper sitting arrangement for
the customer is available in the branch. Senior citizens/pensioners are given priority
in work. Arrangement of Drinking water to the customer is available. Branch
Premises, Toilets are regularly cleaned.
8.2. Upkeep of Branch premises: Branch Head should ensure that the branch and its
ambiance is under regular maintenance, phone no’s are in the working conditions,
records are maintained properly, stationary is properly maintained, Record of Annual
Maintenance Contract is maintained properly and renewed in time.
As far as possible, sweeping/cleaning of branches should be done in the evening
after the cash is kept inside the safe and before the branch is closed, so that the
branch need not be opened ahead of the business hours. However, wherever this is
not feasible, branches may be cleaned in the morning, but minimum two staff
members excluding PTS must be present before opening branch. Wherever Armed
Guard is posted he will also be present at the time of opening branch.

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8.3. Office/Branch Keys: Branch Manager/Deputy Branch Manager should ensure that the
branch keys are in dual control. Designated officer should remain present while
opening the Branch and get the branch cleaned in his/her presence.
8.4. Emergency call numbers: Emergency contact numbers such as Police, Fire Brigade,
and Ambulance phone no’s etc. need to be displayed in the Branch Hall.
8.5. Complaint Box/Register: RH/BH should ensure that the complaint box is available
in the branch and it is regularly attended/opened for resolving the customer
complaints if any.
8.6. Display of mandatory Boards at prominent place: All the information as directed
by RBI must be displayed in the Branch hall for the information of the customers,
such as Service Charges, Interest on Deposit, Interest on Advances, Various
Services Available, Customer Right, Banking Ombudsman’s address, Regional
Heads Name, address and phone No’s etc.
8.7. Display of Branch timing board: RH/BH should ensure to display the branch
business hours on a display board at the Entrance Door of Branch. The board
displayed should be in neat and clean condition and bilingual/Trilingual i.e.
English/Hindi and a local language.
8.8. Signage Board of Branch: RH/BH needs to ensure that the Banks’ signage Board is
displayed properly and is as per the Banks existing guidelines. It should be ensured
that the signage Board is maintained and is in neat and clean condition and have
proper light during night time. Also, to ensure that the permission from the local
authorities for displaying the board (as per the local laws) is obtained and is on
record.
8.9. Muster Roll/Attendance register: All the staff members shall remain present well
in time i.e. 15 minutes earlier to Branch/Office start time, and muster roll is
signed by them against their name. The business of the branch should starts well
on time without any inconvenience to the customers.
8.10. Operation/Service Boards: Branch counters must be displayed with the boards
such as May I Help You, Clearing, RTGS/NEFT/DD/PO/Transfers, Deposits, Cash
Receipt, Cash Payment, Locker Facility, Advances Dept. etc. for the convenience
of the customers.
8.11. Network Electronic Display Unit (NEDU)(Refer IC no: 2945:2021 dated
08.12.21):In order to publicize Bank’s products and services using digital media,
Separate Network Electronic Display Units (NEDU) are provided in branches. The
publicity material is displayed in NEDU at centralized level. Branches have to
ensure that the NEDU unit is working properly in Branches and is installed at
prominent place in Branch for wider publicity.
8.12. Ethic Package: To automate the whole Audit Reporting Process, Bank has
procured new web-based software solution – eTHIC package for audit
management. This application is used by the Internal Auditors, Concurrent
Auditors, Regional Office, Zonal Office, Branches etc. Field functionaries can
share their queries/feedback to audit.ethichelpdesk@unionBankofindia.com for
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prompt resolution of issues relating to eTHIC package. Refer IC No.1270-2018
dated 24.07.2018
8.13. CMRD Portal/CMCC Portal/EWS: In order to simplify the task of Credit Monitoring
CMRD web portal is available for all the field functionaries, on link:
http://10.0.229.224:8224/cmrdportal/home.aspx . The portal is a single data
point source and the action taken at branches on each of the credit monitoring
parameters is updated on line at each level, i.e. branch, RO, ZO and Central
Office. For detail please refer IC NO.1402:2018 dated 17.11.2018, IC NO: 03331
dated 28.03.2019 on CMRD WEB PORTAL- USER MANUAL VERSION 1.1.0 and IC NO
:00854 dated 15.06.2020 on CMRD Web Portal - User Manual 1.2.0 (For
Amalgamated Entity)
8.14. OCRM: Operational Customer Relationship Management is available for lodging and
resolution of customer complaints. Presently, the complaints received on the toll-
free no’s at Call Centre are lodged in the OCRM package, which in turn are
diverted to the respective department for its Real Time Resolution. Immediately
on lodgment of complaints complainant receives the acknowledgement over
his/her registered mobile no. On resolution of the complaint a link is provided
for feed-back of the complaint.
8.15. My Diary 360m degree portal for utility of Branch/RO/FGMO/CO users:
In the present situation, all the information pertaining to branch is not available
in any particular portal/system and branches/Regional Offices/FGMOs have to
draw different reports from different packages and clubbing it to monitor the
branches/ offices. In this process, huge manpower is involved to generate the
data pertaining to different verticals. Due to this, Monitoring, development &
improvement is difficult to assess in present scenario.
A. Main Page:
a. URL of the portal is 172.27.70.12:8012/mydiary/
B. My Library:
a. Code - contains CEPD
b. Circulars – Circulars issued by the Operation Department.
c. Hand books- contains handbook on customer care, currency chest etc.
d. Policies
e. In-house Magazines
f. Power Point slides – contains complaint management, currency chest
management, death claim
g. Videos- Positive Pay, death claim, door step Banking etc. for better
understanding of the branch users.
h. Staff college initiatives
i. Podcasts
C. Sign in – User id and Password

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D. Utility Corner: It is basically for the branch users to make the information available
at single platform. It contains information like Branch Parameters, AMC Providers,
Branch Important contacts, public service important contacts, details of Govt.
Offices, Educational Institutions etc, in the vicinity of the branch, details of dealers,
builders, valuers, advocates, information on duplicate key, escalation matrix,
Branch Head vision, Cheque Book tracking staff strength, service charge and Record
keeping etc.
E. Dash Board: Dash Board provides general information of the branch/region/Zone like
vacant lockers, overdue deposits, inactive accounts, dormant accounts, lien mark
accounts, churning of customer (behavior) position of third party commission, KPI,
and Government Business position etc. Dash Board Tab also contains information
pertaining to Accounts open closed (CASA, Retail, Agriculture & MSME) during the
particular day and in the Financial Year, Locker status, overdue deposits, top
depositors, top borrowers, top NPA borrowers, Churn Predictions, Third party
products, Term Deposits maturing in the next 30 days, Digital Documentation
Execution position and Door Step Banking Position , DMAT Account opened Report,
UVConn Report, Transactions report, ATM hits report and ATM status report .
F. Account Defaulting: It exhibits details of dormant, inactive, lien marked, No
nomination and DEAF Accounts.
G. Alert Corner: The system will display details of sundry, suspense, Cash holding,UCIC
Aadhar data, UCIC Pan data, Beneficiary Ownership, CKYC Pendency list, Revoked
Mobile Numbers, High Risk customers, ReKYC pendency data, DMS scanning pendency
, NEDU TV Status, customer with Occupation code 999, Account aggregator data,
SB/CD account without mobile no , advances above limit of 5 Crs (Compliance to
MIS), etc.
H. Lead Corner: The system will display Loan application processed at ULP and Saral,
under ULP lead and Saral lead Tab for current FY. It also contains information about
PAPL leads, credit card leads, Kishan credit card leads, Gold loan leads, DMAT leads,
Home loan Top-up leads, Uconncect Customer.
I. SUD Life Corner: 360 degree analysis of SUD Life insurance. It contains position of
renewals, new business, pending complaints, commission on renewal, commission on
new business etc.
J. Meeting Details: System will display the information pertaining to Customer,
Vigilance, Staff, NPA borrower and Advocate Meetings during the financial year etc.
K. Complaint Register: The system will display pending ombudsman and ORMC
complaints and investigation pending complaints. Under Cyber fraud search report
Branches/offices can search for debit freeze reason for particular account if any
account is frozen due to cyber complaint.
L. Letter/ Notes: The branches will be in position to see the letters and notes sent by
the Central office. Branches can submit their reply and system will check whether it
is acknowledged by the branch or not.

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M. Formats/ Reports: System will store history of branch visit done by the Regional
office executives. It also contains common formats to be used by the branches like
death claim, nominations etc. The system will store the history of login users. It will
facilitate in monitoring the branches/offices. Auto-AOF is a new feature added for
auto filling of account opening forms/Application forms.
N. Others: It contains Issue management, CIBIL Rejection Data etc.
O. Settings: General settings and links for DMS login, OCRM login, CMCC login

9. Branch Profitability:

Every business organization operates in order to earn profits. Although it may have
other goals also, but if it does not make profits then other achievements may appear
displeasing and undesirable. Amidst high competition in Banking Industry, an
excellent management of available resources is required for steady increase in the
market share otherwise, NIM (Net Interest Margin) and ROE (Returns on Equity) will
be lower and Bank will not be able to sustain the Profitability in the long run. In fact,
profit generation is not an option, but it is a must for survival of any organization. It
indicates how efficiently we are managing the available funds. Components of Branch
Profitability are as under:-
a. Interest Income from Advances.
b. Interest Expenses for Deposits
c. Non-Interest Income i.e. processing charges, commission on LC/BG etc
d. Operating Expenses including establishment expenses i.e. Salary and allowances.
e. MFTP Credit/Received (Matched Funds Transfer Pricing) for Deposit
f. MFTP Charge/Debited (Matched Funds Transfer Pricing) for Advances )

9.1 Non-Interest income and its components: Income generated from non-core Banking
activities is referred as non-interest income. It plays a vital role in total income of the
Bank. In present era of market competition, while borrowers demand the credit at the
finest possible rates, the depositors expect higher rates. Obliviously it puts pressure on
the net interest margin of the Bank. Hence, there is need of thrust on augmenting the
non-interest income. Components of non-interest income are as under:
a. Commission, Exchange and Brokerage (inland)
b. Commission, Exchange and Brokerage (Foreign)
c. Commission on Govt. Business
d. Commission on Para Banking services
e. Profit on sale of investment
f. Profit on sale of land, building and other assets
g. Profit on exchange transactions
h. Miscellaneous income i.e. Rent on SDV lockers, processing charges on advances,
various services charges etc.
9.1.1 Service charges: A service charge is a fee charged to customer on account of
extending Banking services as cost is associated. Bank reviews service charges on

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various services keeping in view of regulatory guidelines from time to time/cost
benefit analysis, Peer Banks’ Service Charges etc. Service Charges on Inland Services
(Other than Advances)’ are administered by Operation department. However, some
specific charges are administered by respective vertical at CO.

S.N. Circular no. Date Content

1 01864-2020 05.03.2020 Revision in Service Charges on Inland Services
(Other than Advances)
2 01867-2020 05.03.2020 Management of Credit Portfolio - Service
Charges on Domestic Rupee Advances
w.e.f.01.04.2020
3 DFB & IBD 05.03.2020 Revision in Services Charges relating to Forex
Circular No: transactions w.e.f. 01.04.2020
07091
4 02021-2020 08.04.2020 Revision in Service Charges relating to Merchant
Banking Transaction.
5 02045 -2020 27.04.2020 Relaxations in service charges on inland services
during COVID 19 Pandemic.
6 02073-2020 01.06.2020 Clarification/modification in Service Charges on
Inland Services (Other than advances)
7 03073:2022 23.02.2022 Revision in Service Charges on Inland Services
(Other than Advances)

9.1.2 Concession/waiver of service charges: Concession/waiver given at product/scheme

level is governed by respective products/schemes. With respect to
Concessions/waiver in service Charges on Inland Services (Other than advances)
available to various segments like ex-servicemen, physically disabled persons,
freedom fighters, RRBs etc. are given Annex. II of I.C.No.03073:2022 dated
23.02.2022 Revision in Service Charges on Inland Services (Other than Advances).

9.1.3 Concession/waiver in Individual cases: With a view to provide competitive edge to

the branches concession in service charges are given to customers on case to case
basis on merits of each cases. Proposal for waiver/concession in service charges
(other than advances and forex charges), Branches/ROs/FGMOs after carrying out
the cost benefit analysis shall submit the same to Deposit Mobilization Department
for final approval from CAC I/II/III.

S.N. Circular Date Content

no.
1 IC:09573 08.05.2013 Procedure for sanctioning concession in service
charges on inland services (other than advances)

9.1.4 Leakage of Income: Leakage of income has a direct impact on Bank’s profitability.
Though recovery of many service charges is automated, Branches to take utmost care
to avoid any leakage of income and ensure that all charges are recovered as per
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applicability. It is also observed that branches do not recover the Leakage of income
promptly even after it is being pointed out by the auditors. The major portion of
Leakage detected pertains to Credit related service charges. The deficiencies are
observed on the part of Branches in collecting stipulated charges such as:
a. Processing Charges
b. Commitment Charges
c. Inspecting/Unit visit Charges
d. Equitable Mortgage Charges
e. Security Redemption charges
f. CERSAI charges
g. Legal Charges
h. Charges for amendment of sanction terms/revalidation/rephasement
i. Penal charges for the reasons such as default in repayment, non-submission of
financial statements, Stock/Book Debt statements, diversion of funds etc.
Leakage is also detected on account of failure to carry out the interest rate
revisions, non-linking of interest to Base Rate, Non collection/short collection of
commission on BGs/LCs, amendment charges, closing charges and other service
charges related to remittance of funds and Locker rentals. Immediate recovery of
Leakage of Income detected is paramount duty of the officials at Branches.

10. Validity & Review of the Policy:

All the Instruction Circulars/Information Circulars issued by the respective

department are subject to revision from time to time.
Addition of any new guidelines/circulars issued as per Regulatory requirement,
MOF/IBA directives, system improvements on account of customer convenience etc.
in Policy during its currency period be modified with the prior approval of Chief
General Manager & COO/related Vertical Heads.
The revised policy will be placed to the Sub-Committee of the Board/Board when due
for review.
The Policy shall be reviewed annually in tune with the regulatory guidelines issued
from time to time or internal requirements or as and when considered necessary. The
Operation Policy shall be valid up to 31.03.2025. The Policy can be further extended
for a period of not exceeding 3 months with the prior approval of the Managing
Director and Chief Executive Officer.

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