Service Charges
SECTION E
SERVICE CHARGE
CONCESSIONS ON VARIOUS ISSUES
1. CONCESSIONS
ON MISCELLANEOUS ITEMS
To compete with other banks in CBS
environment, the following concessions may be given:
| a) Transfer of Funds (Both for Deposit and
borrowal Accounts)
b) Issuance of Demand Drafts |
Deposit Accounts: Transfer
of funds periodically from the collection accounts maintained at branches to Regional
Collection Account and the aggregate collection is transferred as per standing arrangement
to the Main account of the organization/firm/company.
From the main Account again funds are transferred to the various
disbursing accounts maintained at various centres.
Advances/Borrowal Accounts
i) Accounts from where debit balances are transferred
ii) Accounts from where credit balances are transferred |
The above two facilities namely a) & b) may be
extended to important Corporate customers/valuable constituents on a very selective basis,
considering the merit of the case viz.:-
-
Total business connection with the Bank
-
Frequency of the operation at the Branch
-
Cost to the Bank is minimal
[A] The Powers regarding concessions for approving the
arrangements on remittance:
Sl.
No. |
Authority for permitting Concessions in
Remittance upto at par. |
Amount of Remittance |
1. |
Branch Headed by Scale II |
Upto Rs.10,000 |
2. |
Branch Headed by Scale III |
Upto Rs.25,000 |
3. |
Branch Headed by Scale IV |
Upto Rs.50,000 |
4. |
Branch Headed/Zonal Headed by Scale V
& above |
Above Rs.50,000 |
The Zonal Head/Branch Head
of Scale-V and above may extend the concessions upto at par to our existing customers
having accounts in other branches of our Bank in the same name and same capacity. Extent
of concession to be allowed has been left to the discretion of the branch head based on
business consideration and value of connection.
[B] The concessional charges @ 25% of normal charges for Letter of Credit
facilities fully secured by cash deposit will be allowed.
2. CONCESSIONS ALLOWED TO STAFF/EX-STAFF MEMBERS
| a) Ledger Folio Charges |
No incidental charges to be levied on
account maintaining in the name of existing/retired employees or jointly with close
relatives. |
| b) Standing Instructions |
No charges |
| c) Outward remittances |
All DDs/ MTs/ TTs/ Banker’s Cheque be
issued free of charge. Cost of telegram in case of TTs to be recovered. |
|
d) Collection of Cheques/Demand Drafts
|
No charges. |
|
e) Issuance of Rupee Traveller’s Cheque
|
No commission to be charged |
| f) Locker Rent |
Staff members (including the retired Staff
members) will be charged 50% of the annual rental charges. |
3. CONCESSIONS TO DEFENCE, PARAMILITARY PERSONNEL & EX-SERVICEMEN
The Defence and Paramilitary personnel including ex-servicemen are the
beneficiaries of the following concessions in respect of Service Charges from Public
Sector Banks:
- At par collection of salary/terminal dues.
-
At par remittances to family up to Rs.5,000 per month and one time
remittance for payment of school/college fees in a year (out of pocket expenses to be
recovered).
- At par custody of Wills.
- In-house Standing Instructions free of charge.
4. FACILITY FOR FREE TRANSFER OF FUNDS FOR REGIONAL RURAL
BANKS (RRBs)
In terms of RBI directive, facilities for free transfer
of funds should be extended by the branches for remittance of funds between the Head
Offices of the RRBs and their different branches free of cost irrespective of the fact
whether the RRBs are sponsored by the Bank or not. The remittance may be allowed in
multiples of Rs.5,000 subject to a minimum of Rs. 5,000.
5. CONCESSIONS REGARDING CREDIT RELATED ITEMS
The concessions regarding reduction/waivement of Service
Charges including handling/processing, upfront, collection, discount charges etc. on also
Commission on Bank Guarantee and Letter of Credit in case to case basis may be considered
as under:
| i) |
a. Concession upto 25% may be
permitted by Branch Head/Zonal Heads headed by AGM/DGM & DGM (Credit) Head Office, in
case of limit sanctioned by Branch/Zonal Office. |
| b. Concession upto 50% may be
permitted by Zonal Heads (GM)/General Manager Head Office in case of limits sanctioned by
himself/ Branch/Zonal Office (headed by AGM/DGM)/DGM (Credit) Head Office. |
| c. Concession upto 75% may be
permitted by the Executive Director in case of limit sanctioned by upto his authority. |
| d. Concession upto 100% may be
permitted by the CMD/ED (in absence of CMD) in case of limit sanctioned in all cases
including himself and MCBOD. |
| ii) |
Concessional charges @ 25% of normal
charges on Guarantee/s fully secured by Cash/FDR (normal
rate) will be allowed e.g. on performance/financial
guarantee for Rs.1 lac and above, subject to minimum
charge of Rs.700 (Rs.200+ Rs.500). |
| iii) |
Concessional charges @ 50% of
normal charges for Guarantees issued by the Bank against counter Guarantee of State
Government/Central Government/Prime Bank will be allowed. |
| iv) |
a) Service Charges viz. processing fees, upfront fees, mortgage charges
and documentation charges in the accounts having limit up to Rs.5 lac under
agriculture/priority sector credit may be waived by the respective Zonal Heads. |
| b) Inspection & Supervision charges may be reduced to the extent of
50% of normal chargers in agriculture and other priority sector credit by the respective
Zonal Heads. |
| v) |
For waiver of prepayment charges, in case
it is sanctioned by Branch/Zonal Office, permission from Zonal Office/Head Office will be
obtained. In case the loan is sanctioned by Head Office, such waiver will be considered by
respective sanctioning authority. |
| vi) |
Service Charges will not be realized if specifically
mentioned in any of Bank’s/RBI/Govt. Schemes/Guidelines. No Charges will be realized
for Staff Loans. However out of pocket charges will be realized on actual basis. |
6. Discretionary Power to reduce Charges
[A] Forex Business: The Concessions regarding
reduction/waivement of Service Charges for Foreign Exchange related issues on case to case
basis may be considered as under:
Concessions |
Competent Authority |
Upto 25% |
Branch
Head(DGM/AGM)
Zonal Head (DGM/AGM) |
Upto 50% |
Zonal Head
(GM)
GM (Foreign Dept. H.O.) |
Upto 75% |
Executive
Director |
Upto 100% |
Chairman
& Managing Director
/Executive Director (In absence of C&MD) |
[B] Other Business: The Concessions regarding
reduction/waivement of Service Charges for other issues on case-to-case basis may be
considered as under:
As our Bank is operating in a highly competitive environment, it has
been decided that the Zonal Head or AGM/DGM headed branch, may use his discretion to slash
the quantum of service charges at par on normal Service Charges to important corporate
customers/valuable constituents considering the total business connection/ potential
earning from the customer/frequency of operation of the branch etc.
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