Training Booklet

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HIMACHAL PRADESH GRAMIN BANK
HEAD OFFICE JAWAHAR NAGAR MANDI (H.P)
THREE DAYS ON LOCATION TRAINING PROGRAM
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THREE DAY ON LOCATION ORINTATION TRAINING PROGRAMME ON CBS , CREDIT & RECOVERY FOR
OFFICERS OF HIMACHAL PRADESH GRAMIN BANK
(02.02.2016 to 04.02.2016) AT HOTEL RIVER BANK MANDI H.P.
Date Session Topic Facilitator

02.02.16 I Registration, welcome address, CBS Overview Vinod Bhatia
Challenges & Opportunities, Home page RM (Mandi))
address, Downloads of JAVA Policy, Hot Keys, IP
Messenger, Concept of EFM/UPM, work
Class/Role ID Password Guidelines. Day Begin,
Day End.
II Type of Customers. Type of Deposit Scheme, Vinod K Sood
Type of Advances. Type of AOF Filing of AOF, RM (Solan)
Creation of Cust_ID,
III Practical on Creation of Cust_ID, Opening of Sandeep Saini
Account, Opening of A/c under eKYC, Manager IT
Transaction Maintenance, TMKCC, Subsidy
related Transaction, TTM, SPTM, Disbursement
of loan, Charges etc.
IV Term Deposit, Renewal, Extension, Pre-Mature, Vinod Kumar Sood
TDS calculation, Entry of PAN, Form15H/15G in RM (Solan)
System, Refund/Reversal/ Remittance of
TDS,FLAXI RD , Transfer of Account, FDSUR,
FDJEE, APY
V Inventory movement, Security Forms, Issuance Sandeep Saini
of Demand draft, Pay order, Bills Lodging & Manager IT
realization, Bill enquiry, Tallying of Bills
balances.
VI Opening of KCC/CC, Demand Loan, and OD Vinod K Bhatai
limits accounts in Finacle, Maintenance of DP, RM (Mandi)
Renewal of Limits,Creation of SRM. Subsidy Link
account, Simple Interest accounts etc in Finacle,
execution of LAXFRINT , Creation of SRM
,Marking of BC letter, Insurance, Lien, Changing
of Interest Table code, Correct MIS
Modification /rephasement A case Study,
03.02.16 I Type of CRs, Compilation of CRs, Supporting Vinod K Sood
documents to compile CR, Creation of Charge RM (Solan)
on land, Mortgage of Land, Non-Encumbrance
Certificate, Search Report , Valuation Certificate,
Exercise on compilation of CR
II Check points of different type of loans. CIBIL Vinod Bhatia
Report, No-Dues-Affidavit, Power to sanction RM (Mandi)
different type of loans., Stamping of Different
documents, documentation of loans general
precaution, Levy of Processing/documentation
charges, Pre-sanction & Post sanction follow-up
of loans, Quarterly Review of Loan, Review of
CRs , Limitation of loan document.
III Overview on CC, Analysis of financial Vinod K Sood
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statements, Working capital assessment, KCC RM (Solan)
guidelines, Rule Base Lending, Pre-sanction
appraisal, Study of Revenue record, Charge /
Mortgage of land. Scale of Finance, Preparation
of Economics, Documentation of KCC
IV Demand Loan, Overdraft Limit, Margin on Vinod Bhatia
Demand Loan, OD Limits, SB OD Limits under RM (Mandi)
SBBDA Accounts ROI, Pledging of FDR, NSCs,
LIC,s etc.
V Overview on Personal Vehicle loan, Eligibility for Vinod K Sood
loan, Transport Loan, appraisal of Transport RM (Solan)
loan, Margin, Driving license, Delivery of vehicle,
Bills/receipt, Inspection of vehicle, RC,
Insurance, Documentation etc
VI Overview of House loan, OD Facility in Housing Vinod Bhatia
Loan Eligibility, Map-Abstract of cost, detail of RM (Mandi)
measurement, Basic amenity certificate, Site
plan, approval of Map, Tatima, Documentation
etc.
04.02.16 I MSME including MUDRA advances, Overview of Vinod Bhatia
other loans such as SHG, JLGs, MCC, SCC,ACC RM (Mandi)
their Eligibility, Pre & post sanction appraisal,
Documentation etc
II Limitation in loan, Revival of Limitation, Legal Vinod Kumar Sood
heirs documents, Irregular loan follow up, RM (Solan)
Reminders, Personal Contact, Legal Notices etc.
Marking of NPA, up gradation of NPA a/cs,
III Tools for recovery like Seizure & Sale, SARFEASI, Vinod Bhatia
Suit Filed, Decree, Execution of Decreed RM (Mandi)
account, lodgment of claim u/s 138, Schedule of
Charges to be paid to advocate/recovery
agencies, Filing of RC under HP Public Money
Recovery Act. Compromise, Written of loans,
WLA
IV RBIA System in inspection, Type of Risk: Vinod Kumar Sood
Business Risk & Control Risk, ZTL/FSI Items, RM (Solan)
Marking System, Removal of Irregularities,
Closer of IRs Financial Inclusion, Use of Hindi,
Customer services. Social Security Schemes,
evaluation of the programme.
V Generation of Reports, Downloading of reports Sandeep Saini
in PC, Morning checking reports etc, Manager IT
Marking/reversal of NPA, Treatment of
Derecognized/Recorded interest.
VI Action planning and Valediction Chairman
HPGB Mandi
Session Timing:
Session Tea Session Session Lunch Session Tea Break Session Session
I Break II III Break IV V VI
09.30 10.45 11.00 12.15 13.30 14.00 15.15 15.30 16.45
to to to to to to to to to
10.45 11.00 12.15 13.30 14.00 15.15 15.30 16.45 18.00
Ground Rules
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Please keep your mobile phone in switch-off mode during session.
Please observe time schedule on daily basis.
PROCEDURAL GUIDELINES FOR AGRICULTURAL CREDIT.
Processing the applications for agricultural credit.
Assessment of Technical feasibility and economic viability.

Record the facts in the loan application itself while sanctioning the loan.
Investment credit availed should preferably be supplemented with KCC.
Broad parameters for Expenditure/Income calculation are as under: -
Expenditure
Expenditure on productive activities.

Expenditure on allied activities like dairy,poultry,sheep etc.
Consumption needs.
Income
Land availability and cropping pattern.

Expected income from allied agriculture/non-farm activities.
Any other income.
TIME SCHEDULE FOR DISPOSAL OF LOAN APPLICATIONS:
Extent of Loan Time Schedule

(Maximum)
Upto Rs.2 lakh : 2 weeks
Above Rs.2 lakh and upto Rs.50 lakh : 4 weeks
Above Rs.50 lakh and up to Rs. 100 lakh :5-6 weeks
Above Rs. 100 lakh & up to Rs. 100 crores : 6-7 weeks
Above Rs. 100 crores :8-9 weeks
PRE-SANCTION APPRAISAL: The following aspects should be looked into:
Integrity/Experience of the applicant should be judged.

Local enquiries should be made about the assets and liabilities/ previous business
credibility and related aspects.
Spot verification should be conducted to know the correctness and suitability of the
project and verification of Land record.
MARGIN NORMS:
(a) For Crop Production: Nil

(b) For Investment Credit:
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Amount of loan Margin
i) Up to Rs.1,00,000/- Nil
(both for short term and medium term)
ii) Above Rs.1,00,000/- to Rs.2 lakh 5%
iii) Rs.2 lakh up to 5 lakh 10%
iv) Above 5 lakh 25%
(c) For Agri-Clinics/Agr.-Business Centre
i) Up to Rs. 5 lakh Nil
ii) Above Rs. 5 lakh 25%
SECURITY NORMS:
(A) Production Credit/Investment Credit:
(i) Upto Rs.1, 00,000/-

Hypothecation of crops/assets created out of bank loan;
(ii) Above Rs.1, 00,000/-
(a) Hypothecation of crops/assets created out of bank loan;
AND
(b) Charge/Mortgage of agricultural land valued at 100% of amount of loan for other
farmers and 75% of the loan amount for small farmers/marginal farmers;
OR
Alternate security, viz., charge/lien over liquid securities such as term
deposits/NSCs/KVPs, etc., which may be considered adequate
OR
Suitable third party guarantee.
(B) Under the Scheme of Agri-Clinics and Agri-Business Centres:
(i) Upto Rs.5 lakh:

Hypothecation of assets created out of bank loan;
(ii) Above Rs.5 lakh:
(a) Hypothecation of assets created out of bank loan;
AND
(b) Charge/Mortgage of agricultural land valued at 100% of amount of loan for other
farmers and 75% of the loan amount for small farmers/marginal farmers:
OR
Alternate security, viz., charge/lien over liquid securities such as term
deposits/NSCs/KVPs, etc., which may be considered adequate.
OR
Suitable third party guarantee.
. CONFIDENTIAL REPORT (CR) ON BORROWER(S) AND GUARANTOR(S):
(i) For loans NO CR to be collected. However information furnished by the

Upto Rs.50,000/- borrower in loan application form must be verified by
Incumbent Incharge/officer and they will record their opinion to
this effect
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(ii) For loan above A brief CR(Simplified Confidential Reports) on Borrower &
Rs.50,000/- and Guarantors in respect of Farm Advances may be obtained along
up to Rs. 10 lakh with the information furnished by borrower on loan application
(iii) For loan above Detailed CR may be obtained on banks prescribed form
Rs. 10 lakh
LETTER OF SANCTION:
As soon as loan is sanctioned, letter of sanction shall be issued to borrower.
RATE OF INTEREST:
The rate of interest should be charged as per Loans & Advances Circulars issued by Head
Office from time to time.
LOAN APPLICATION AND DOCUMENTATION:
S. No. Particulars of the Form

For Loan Upto Rs One Lakh
(i) Simplified application cum sanction for loan upto Rs. 1 lakh
(ii) Hypothecation Agreement upto Rs. 1 lakh
For Loan above Rs One Lakh
(iii) Application for agricultural credit
(iv) Prescribed Annexure/Appendix for each agricultural
activity
(v) Hypothecation Agreement
(vi) Deed of guarantee, wherever applicable
(vii) Mortgage deed, wherever applicable
(viii) Declaration regarding Agricultural land
(ix) Copies of documents establishing ownership/cultivation
rights called Furd Jamabandi, Khasra/Khatauni Girdawri
(or by other vernacular names).
DISBURSEMENT OF LOAN:
Time Factor' is very important for disbursement of loans. Adequate and timely
disbursement of loan.
The bills/receipts duly verified by the borrower shall be kept on Banks record.
In case third party payment is made for farm inputs on behalf of the farmers an
authority letter to be taken from the borrower.
REPAYMENT PERIOD:
I. Short term credit:
(i) Due dates fixed for recovery of crop loans towards adjustment of loan and interest
should synchronise with harvesting and marketing of crops. A suitable marketing
period after the actual harvest be allowed to borrower for marketing of produce and
receiving sale proceeds so that he/she may conveniently repay Bank loan.
II. Investment credit:
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Repayment period for investment activities shall be fixed as prescribed in the respective
agriculture credit scheme.
RULE BASE LENDING MODEL (RBLM)

Bench Mark for sanction of credit proposal has been kept at 60 marks for the farmers and 55
marks for small and marginal farmers, etc.
Copy of the RBLM compromising details of score earned by applicant shall be kept with
documents.
OBTAINING OF NO DUES CERTIFICATE:
No Dues Certificate/Affidavit is not to be obtained for agricultural loans up to

Rs.1,00,000/-. However, for loans above Rs.1, 00,000/-, obtaining of No-Dues or
Affidavit in lieu of "No Dues Certificate" is allowed.
OBTAINING OF NO OBJECTION CERTIFICATE FROM THE CO-SHARERS OF

AGRICULTURAL LAND:
No need to obtain No Objection Certificate from the co-sharer(s) of agricultural land.
In lieu thereof, a simple declaration to be obtained from the intending borrower(s)
stating that there is no family dispute about title of the agricultural land to be
mortgaged/charge created in favour of the Bank for securing the loan.
RENEWAL OF SHORT-TERM LIMIT:

Fresh Application for Agriculture Credit and Copies of Revenue Records are not
required.
KCC will be renewed after every 5 year.
In case of enhancement, fresh documents shall be obtained
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Operative Circulars: Loan circular 21/15 dated 22.04.15
KISHAN CREDIT CARD SCHEME

PURPOSE:
To meet the short term credit requirements for cultivation of crops including
Post harvest expenses , Produce
Marketing Loan, Consumption requirements, working capital for maintenance
of farm assets Investment credit requirement for agriculture and allied
activities
ELIGIBILITY:
All Farmers Individuals / Joint borrowers who are owner cultivators, Tenant
Farmers, Oral Lessees & Share Croppers, SHGs or JLGs
Oral tenants can be eligible for loan only if land owners agree to become co-
borrowers.
In the accounts which are secured by liquid securities like FDR, NSC/KVP, etc.,
the cards to oral tenants can be issued without stipulating the condition of
land owners to be made co-borrowers.
Landless labourers, share croppers, tenant farmers and oral lessees can
be issued HPGB Kisan Credit Card (KCC) up to limit of Rs 50,000/- on
the basis of an Affidavit, duly stamped as per the respective State
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Stamps rules.
Extent of Limit:
Need Based.
FIXATION OF LIMIT:
The credit limit under the Kisan Credit Card will be fixed for five years based
on the scale of finance for the crop( as decided by District Level Technical
Committee) and Extent of area cultivated.
The term loan limits based on the proposed investment during the five year
period and the banks perception on the repaying capacity of the farmer.
Maximum Permissible Limit: The short term loan limit arrived for the 5th
year plus the estimated term loan requirement will be Maximum Permissible
Limit( MPL) and treated as the Kishan Credit Card Limit.
Disbursement:
The short term component of the KCC limit is in the nature of revolving Cash
Credit Facility.
The long term loan for investment purpose may be drawn as per installment
fixed.
Rate of Interest:
7% up to Rs. 3.00 Lac. if account is regular.
Above Rs. 3.00 Lac as advised by Head Office time to time
Documentation:
S. No. Particulars of the Form
(i) Application for agricultural credit
(ii) Prescribed Annexure/Appendix for each agricultural activity
(iii) Hypothecation Agreement
(iv) Deed of guarantee, wherever applicable
(v) Mortgage deed, wherever applicable
(vi) Copies of documents establishing ownership/cultivation
rights called Furd Jamabandi, Khasra/Khatauni Girdawri (or
by other vernacular names).
vii) No dues certificate/ affidavit
viii) Letter of under taking
ix) Mandate in case of joint Borrowers
x) Letter of request for covering under PAIS
Repayment:
i) In case of Cash Credit Crop Loan Limit including consumption needs may
be repayable in 12 months.
Aggregate credits into the account during 12 months period should at least
be
equal to the maximum outstanding in the account.
No drawal in the account should remain outstanding for more than 12
months.
ii) Reducing term loan limit may be repayable within a period of 5 years
depending on the type of activity/ investment. However, in case of term loan
for tractor, etc where repayment period is more than 5 years, the facility may
be allowed separately.
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All eligible KCC holders are to be invariably covered under PMSBY scheme.
Operative Circulars: Loan circular No.34/12 dated 11.07.12, 42/12 dated 26.07.12, 33/13 dated
17.04.13, 21/15 dated 22.04.15.

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HIM A C HA L PR A D E S H GR A M IN B A NK H E A D O F F IC E M A ND I H. P.
SANCTION LETTER FOR KISAN CREDIT CARD
Branch______________ Date________________
To,
Sh. ______________________________
S/O. _____________________________
Village ___________ P.O. ____________
Teh._____________ Distt. ___________
Himachal Pradesh
Ref: Your application for Kisan Credit Card (C.C/ T.L)
Dear Sir,
With reference to your application dated __________________ we are pleased to inform that Kisan Credit Card (C.C/ T.
you on the following terms and conditions.
a) Limit (C.C/ T.L) : Rs. ___________________ , subject to the drawing power as under:
1st Year : Rs.____________________
2nd Year : Rs.____________________
3rd Year : Rs.____________________
4th Year : Rs.____________________
th
5 Year : Rs.____________________
b) Purpose : _______________________________________
c) Rate of interest : _________ % OBR with maximum of _________ per annum, subject to change from time
d) Security : Hypothecation of Crop/ assets created out of loan/Mortgage/Creation of charge on land
e) Guarantee : The Account will be guaranteed by :
Sh. ___________________________ S/O Sh. _______________________ resident of Village _______________
worth of Rs. ____________________.
Sh. ___________________________ S/O Sh. ________________________ resident of Village ______________
worth of Rs. ____________________.
f) Disbursement : The amount may be allowed to be withdrawn through consideration voucher / Withdraw
g) Repayment : 7.1.The entire amount will be repaid after sale of Crop.
: 7.2. ________________________________________ .
: 7.3. ________________________________________ .
You will deal with our Bank only and not borrow from any other Bank.
You will execute documents required for loan before availment of Loan.
Please acknowledge receipt. In case the terms are acceptable, you are requested to visit the Bank for execution of docu
other formalities.
With regards,
Yours faithfully,
Manager
____________________________________________________________________________________
ACKNOWLEDGEMENT
Received with thanks the above letter of sanction . I/We acknowledge receipt of the same and I/We accept the terms an
therein for availment of loan facility. Further, I/We agree to abide by the terms and conditions laid down by Bank from tim
Thanking you
Yours faithfully,
Borrower
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PERFORMA FOR ASSESSING KISHAN CREDIT CARD LIMIT
(As per revised Scheme circulated through Loan circular No.________Dated__________)
HIMACHAL PRADESH GRAMIN BANK B.O.________________
Requirement
Area to be Total
Sr. No Particulars per
Covered Requirement
Bigha/Kanal
A KHARIF
Maize
Paddy
Ginger
Tomato
Vegetable Cauliflower/ Cabbage
Total Kharif
B RAVI
Wheat
Potato
Garlic
Vegetable Cauliflower/ Cabbage
Pulses
Total Ravi
C Green House/Poly House ( Capsicum)
D HORTICULTURE (Mango/Litchi)
E TOTAL REQUIRMENT (A+B+C+D)
I) Crop Loan Component
A 1st Year Assessment

a)Scale of Finance for the crop X Area
Cultivated
b) Add: 1o % towards post harvest/house hold consumption
c) Add 20 % towards farm maintenance
Total Crop loan Limit for 1st year (a+b+c)
B 2nd Year Assessment
a) Total of 1st year Assessment (A above)
b) Add: 1o % of the limit(assessed for 1st yr. towards cost
escalation/increase in scale of finance
Total Crop loan Limit for 2nd year (a+b)
C 3rd Year Assessment
a) Total of 2nd year Assessment (A above)
b) Add: 1o % of the limit(assessed for 2ndt yr. towards cost
Total Crop loan Limit for 3rd year (a+b)
D 4th Year Assessment
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a) Total of 3rd year Assessment (A above)
b) Add: 1o % of the limit(assessed for 3rd yr. towards cost
Total Crop loan Limit for 4th year (a+b)
E 5th Year Assessment
a) Total of 4th year Assessment (A above)
b) Add: 1o % of the limit(assessed for 4th yr. towards cost
Total Crop loan Limit for 5th year (a+b)
Maximum permissible KCC Limit (A+B+C+D+E) Short Term Segment
II) Term Loan Component (If any)
a) Dairy Unit
b) Sheep/Goat Unit
c) Land Reclamation
d) Any other
Total Term Loan Component
Total (I+II)
Less Margin
Maximum permissible KCC Limit (I+II)
Signature of
Borrower
Bank's Report
Pre sanction survey has been carried out on dated____________Credentials of
borrower/Guarantors verified and found correct. Hence recommended a KCC
Limit of Rs._________ and Agr.Term Loan of
Rs.___________________________toSh._________________
under bank's usual terms & Conditions.
Officer (Credit)
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\SELF HELP GROUP
SIZE OF GROUP:
The Group shall consist of 06-20 members. If SHG has more than 20 members it can be broken into two
separate entities.
EXTENT OF CREDIT:
The quantum of credit given should be in proportion to the savings mobilised by the group. The proportion
of savings to loan could vary from 1:1 to 1:4.
Financing to SHGs up to 10 times of their savings can be provided in 3 stages as follows
FIRST STAGE Completion of one year from the date of First financing 1:4
SECOND STAGE Completion of 2 years from the date of First financing 1:7
THIRD STAGE Completion of 3 years from the date of First financing 1:10
SECURITY AND MARGIN: No collateral and no margin will be charged up to Rs. 10.00 lakhs limit to the
SHGs.
DOCUMENTATION:
a) Set of SHG b) Demand Pronote c) Consideration Voucher d) Inter-se Agreement
d) Article of Agreement e) Copy of Books of account of SHG f) Copy of Resolution.
________________________________________________________________________________________
Operative Circular: Loan Circular No.33/2012 dated 22.06.12,37/13 dated 28.06.2013
_
Space for Amendments:
________________________________________________________________
_________________
LOANS TO SHGs UNDER NATIONAL RURAL LIVELIHOOD MISSION
SIZE OF GROUP:
Women SHGs under NRLM consist of 05-15 persons.
ELIGIBILITY:
SHG should be in active existence at least since the last 6 months as per the books of account of SHGs.
SHG should be practicing Panchasutras i.e. Regular meetings; Regular savings; Regular inter-
loaning,Timely repayment; and Up-to- date books of accounts.
Qualified as per grading norms fixed by NABARD.
PURPOSE:
The loans may be used for meeting social needs, high cost debt swapping and taking up
sustainable livelihoods by the individual members within the SHGs or to finance any viable common
activity started by the SHGs.
TYPE OF FACILITY:
SHGs can avail either Term loan or a CCL loan or both based on the need.
In case of need, additional loan can be sanctioned even though the previous loan is outstanding.
LOAN AMOUNT:
First dose: 4-8 times to the proposed corpus during the year or Rs. 50,000 whichever is higher.
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Second dose: 5-10 times of existing corpus and proposed saving during the next twelve months
or Rs. 1 lakhs, whichever is higher.
Third dose: Minimum of Rs. 2 lakhs, based on the Micro credit plan prepared by the SHGs.
Fourth dose onwards: Loan amount can be between Rs.5-10 lakhs for fourth dose and/or
higher in subsequent doses.
(Corpus is inclusive of revolving funds, if any, received by that SHG, its own savings and
funds from other sources in case of promotion by other institutes/NGOs.)
Capital Subsidy: Capital Subsidy has been discontinued under NRLM.

Interest Subvention: NRLM has a provision for Interest subvention, to cover the difference
between the Lending Rate of the banks and 7%, on all credit from the banks/financial institutions
availed by women SHGs, for a maximum of Rs. 3 lac per SHG. The SHGs will also get additional
interest subvention of 3% on prompt payment, reducing the effective rate of interest to 4% in 150
identified districts, Two In HP i.e Shimla & Mandi
Revolving Fund:
NRLM would provide Revolving Fund (RF) support to SHGs in existence for a minimum period of 3/6 months
and follow the norms of good SHG i.e Panchasutra Only such SHGs that have not received any RF earlier will
be provided with RF, as corpus, with minimum of Rs.10000/-and up to a maximum of Rs.15000/-per SHG.
SECURITY AND MARGIN:

No collateral and no margin will be required up to Rs. 10.00 lakhs limit to the SHGs. No lien should
be marked against savings bank account of SHGs and no deposits should be insisted while
sanctioning loans.
REPAYMENT:
The first dose of loan:-6-12 installments.
Second dose:-12-24 months.
Third dose:-between 2 to 5 Years.
Fourth dose onwards:- between 3 to 6 Years
DOCUMENTATION:
a) Set of SHG b) Demand Pronote c) Consideration Voucher d) Inter-se Agreement
d) Article of Agreement e) Copy of Books of account of SHG f) Copy of Resolution.
_______________________________________________________________________________
Operative Circular: For detail refer Loan Circular o. 88/15 dated 06.11.15
SCHEME FOR FINANCING JOINT LIABILITY GROUPS

The scheme for financing Joint Liability Groups has been divided into two parts:
SCHEME FOR FINANCING JOINT LIABILITY GROUPS OF FARM SECTOR.

SCHEME FOR FINANCING JOINT LIABILITY GROUPS OF NON-FARM SECTOR
GENERAL FEATURES OF JOINT LIABILITY GROUP:
A Joint Liability Group (JLG) is an informal group comprising of 4-10 individuals coming
together for the purpose of availing bank loan on individual basis or through group
mechanism against mutual guarantee.
WHO CAN FORM JOINT LIABILITY GROUPS (JLGS):
Individuals, Business Facilitators, NGOs, Farmers Clubs, Farmers Associations,

Panchayat Raj Institutions (PRIs), Krishi Vikas Kendras (KVKs), State Agricultural
Universities (SAUs), Agriculture Technology Management Agency (ATMA), Bank Branches,
PACS, Other Co operatives, Government Departments, Input dealers, Micro Finance
Institutions (MFIs) / Micro Finance Organisations (MFOs), etc.
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JOINT LIABILITY GROUP (JLG) MODELS:
Branches can finance JLGs by adopting any of two models.
MODEL A - FINANCING INDIVIDUALS IN THE JOINT LIABILITY GROUP (JLG):

MODEL B FINANCING JLG AS A GROUP:
MARGIN AND SECURITY NORMS:
No collaterals and margin shall be insisted upon by the branches against their loans to JLGs.
It may, however, be ensured that the mutual guarantees offered by the JLG members are
kept on Banks record.
EXTENT OF LOAN:
Rs. 50,000/- per individual both under Model A& B with a maximum of Rs.5 lakh per JLG.
DOCUMENTATION:
a) Loan Application for Agricultural Credit (b) Related Annexure for crop production/ other
Agriculture & Allied Activities. (c) Inter-se Agreement (d) Joint Liability Agreement (e)
Agreement as per activity to be financed (f) Resolution of Joint Liability Group for availing
loan facility (g) Affidavit for Share Cropper/Oral Lessee/ Tenant Farmer (h)Confidential
Report (i) Consideration vouchers(j) Joint Bills / Invoice, in case of Term Loan, duly
verified by the borrower(s)
REPAYMENT OF LOAN: As per the activity financed.
RATE OF INTEREST: As advised by H.O. time to time.
INSURANCE:
The individual members of JLG are covered under Personal Accident Insurance and Crop Insurance as in case
of KCC or General Insurance as in case of Non Farm Sector.
_____________________________________________________________________________
__________________
Operative Circular: Loan Circular No.34/10 & 35/10 dated 03.09.10, 9/14 dated 15.12.14
HOUSING LOAN SCHEME PUBLIC

ELIGIBILITY:
(a) Any Individual having sufficient income (b) Joint owners are also eligible
PURPOSE:
a)Construction of house (b) Purchase of Built up House/flat (c) Purchase of
Plot/land and Construction of house thereon (d) Repair, Renovation ,Addition,
Alteration
EXTENT OF LOAN:
(a) Need based.
(b) Income of spouse and earning children may also be included after taking
them as co-borrower.
(c) Maximum Rs.50 lakh for purchase of land/plot for construction of house
building, but not more than 60% of the total eligibility.
(d) Repair/Renovation/Addition/Alteration-Max. 25 Lac
MARGIN NORMS:
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Construction of House/flat and Purchase of Built up House/flat -20%
Repair, Renovation,addition,Alteration - 20%
Purchase of Land/Plot for House Building -40%
SECURITY:
Equitable/Registered mortgage of the property
Where Mortgage is not possible immediately viz. House/flat is being allotted
by Housing Board, HUDA, Co- op. Societies, a Stamped Tripartite
Agreement be executed among Housing Board etc., intending Borrower and
Bank.
REPAYMENT:
Maximum 25 Years including moratorium period subject to maximum up to
the age of 65 years (Up to 70 years with prior approval of Regional
Manager.
Moratorium period in case of construction of house : maximum 18 month or
completion of House, whichever is earlier,
Moratorium period 3 months in case of Built up house/flat.
In case of under construction project, Moratorium period would be
kept 30 months from the start of construction of the project or
completion of the project, whichever is earlier.
Repayment should be fixed on a realistic basis, which should not normally
exceed 50%/60% of take home salary as the case may be.
DISBURSEMENT:
For purchase of land/plot/house/flat, the loan amount will be paid lump

sum to the vendor at the time of registration.
For house/flat under construction, the amount will be disbursed in stages
depending upon the progress of construction.
For repair/renovation of house/flat, the amount will be disbursed in stages
depending upon the amount of house
INSURANCE:
Property will be kept insured for re-construction cost , in respect of fire, riots,
earthquake, flood etc.
Takeoverof Accounts from Other Banks/FIs:-The Loan Account must be
regular with no defaults in payment of Interest/Installment
DOCUMENTATION: As per set of loan documents for housing loan.
Up Front Fees/Documentation Charges: As advised by H.O. Time to time.
Operative Circular: Loan Circular No. 42/2014 dated 23.09.2014
16
OVERDRAFT FACILITY TO HOUSING LOAN BORROWERS FOR
PERSONAL NEEDS
ELIGIBILITY:
All existing/new Housing Loan a/cs of our Bank or those acquired/being acquired
by way of take-over from other Banks/HFIs.
The Overdraft Facility for personal use should not be sanctioned to the borrowers, who
have availed loan for Purchase of plot, construction on which is yet to be completed; and Flats/
houses which are under construction

EXTENT OF LOAN:
Minimum - Rs.50,000/-
Maximum- Rs.25.00 lac,
80% of current realizable value of housing property, if the loan amount*(existing
exposure of Housing Loan + Proposed OD Limit is up to 75 Lac.
Repaying capacity: Overdraft facility be set up in such a manner that all deductions
including servicing of interest on Overdraft should not exceed as permitted under
Housing Finance Scheme to Public under NMS/I*(Net Monthly Salary/Income(NMS/I) is
equal to (Gross salary/Income-Statutory Deductions)
SECURITY:
Extension of charge/Creation of charge on the existing Mortgaged Immovable Property/IP
Rate of Interest: As advised by H.O. time to time.

REPAYMENT:
Overdraft facility be set up in such a manner that take home salary/income for
exceed the prescribed limit of Net Monthly salary/Income (NMS/I) of the borrows(s) not
exceed the prescribed ceiling as under:-
NMS/I Max. Permissible deductions of NMS/I

Up to Rs. 30000 40%
>Rs. 30000 to Rs. 60000 50%
>Rs.60000 to Rs.100000 50%
>Rs.100000 60%
Even after the Housing Loan is paid fully, the Overdraft facility can be
continued/renewed, provided the sanctioning authority is satisfied about the repaying
capacity of the borrower and the value of security.
PROCESSING FEE & DOCUMENTATION CHARGES
Processing Fee NIL
Documentation Charges - Rs.450/- (Excluding of S.T.)
LOANING POWER:
Subject to maximum ceiling of Rs.25 lac under the scheme, Loaning Powers shall be as
follows:
Small Branch: Nil Medium: 4 lac Large: 10 lac Chief Manager/RM: 25 lac
___________________________________________________________________
17
Operative Circular: For detail refer loan circular no. 28/15 dated 08.06.15
SCHEME FOR FINANCING CAR TO PUBLIC
PURPOSE
To Purchase
New Car/Van/Jeep/Multi Utility Vehicle (MUV) or Sports Utility Vehicles(SUV)
Old car/van/jeep, which are not older than three years.
ELIGIBILITY FOR LOAN

1. Individuals, Joint Borrowers are also eligible.
2. Business concerns (corporate or non-corporate).
3. Agriculturalists owning irrigated minimum land holding of 5 acres or equivalent
individually.
(Note: Minimum net monthly salary/pension/income Rs. 20000/- (For Salaried Class only)
EXTENT OF LOAN:
For individuals/Proprietorship concerns:
25 times of Net Monthly Salary / Income with a ceiling of Rs.100 lakh (for one or more
vehicles).
Income of Parent(s)/Spouse can be taken into account for determining loan
amount. In such cases, the parent(s)/spouse shall stand co-borrower.
Out of above, only one co-borrower shall be permitted and only his/her
income shall be taken into consideration for determining the loan amount.
For Business Concerns:
No ceiling of loan amount (for one or more vehicles).
MARGIN NORMS:
For New Vehicle:
15%. of on-road price.
10% of on-road price in case of Bank is having Tie-up with Manufacturer/dealer
(Note:- Cost of one-time Road Tax and Insurance charges may be considered towards margin money.)
For Old Vehicles:
30% of the value of the vehicle and the Valuation of old vehicles to be done at current
invoice price of the new vehicle less depreciation @ 15% p.a. on straight line method.
REPAYMENT PERIOD:
For New Car/Van/Jeep/MUV/SUV: 84 equated monthly installments

For Old Car/Van/Jeep/ MUV/SUV: 60 equated monthly installments.
exceed the prescribed limit of Net Monthly salary/Income (NMS/I) of the borrows(s) not
exceed the prescribed ceiling as under:-
NMS/I Max. Permissible deductions of NMS/I

Up to Rs. 30000 40%
18
>Rs. 30000 to Rs. 60000 50%
>Rs.60000 to Rs.100000 50%
>Rs.100000 60%
Repayment to be ensured within 65 years of age of the borrower relaxable up to 70 years by

Regional Manager ad above.
GUARANTEE /COLLATERAL SECURITY:
Third part guarantee/collateral Security is waived in following cases:

i) Permanent Employees of Central Govt./ State Govt.?PSUs/MNCs/Listed Companies
at BSE or NSE (whose shares are actively traded and quoted above par.
ii) Other than salaried class borrowers where ex-showroom cost of the car is
exceeding Rs. 6.00 lacs
In all other cases
Guarantee of spouse, if employed/ earning/ Suitable third party guarantee
OR
Collateral security in the shape of either IP or liquid security equivalent to 100% of the loan
amount.
-Advance cheques in all cases must be obtained.
iii) Incumbents incharge of Scale-IV branches and Regional Manager may waive the
guarantee/ collateral security on merits of each case.
Note:-In case of regular KCC holders having KCC limits Rs. 5 lakh & above having satisfactory repayment
record for minimum two years with our Bank, where agriculture land having surplus value at least 150% of the
proposed car loan amount is already registered mortgaged in favour of our Bank, may be allowed to
finance car after obtaining duly Stamped Undertaking.
DOCUMENTATION:
a) Application cum appraisal / sanction b) Letter of Hypothecation c) Proforma Invoice

d)Guarantee Deed (wherever applicable) e) Irrevocable letter of authority (In case of Bulk Business
and Tie up arrangement only) f) Advance cheque or ECS mandate along with PDCs. g) Description
of the vehicle to be hypothecated h) undertaking (i) Statement of Account.
Up Front Fees/Documentation Charges: As advised by H.O. Time to time.
Operative Circular: Loan Circular No. 39/2014 dated 15.09.2014,79/15 dated 20.10.15.
FINANCE AGAINST MORTGAGE OF IMMOVABLE PROPERTY
PURPOSE:
For Business & Personal needs
ELIGIBILITY:
19
PERSONAL NEEDS:
Employees of Central/ State Govt./Schools/Colleges/ Public Sector Undertakings (PSUs)/ Reputed Corporates
and other income tax Assesses including Professionally qualified Doctors, who are below the age of 65 years.
BUSINESS ENTERPRISE:
Existing customers with a satisfactory track record of three years (cash profits during last three years and
net profit in the immediately preceding year) belonging to some specific categories.
New prospective borrowers and take over cases in the aforesaid categories may be considered who are in
existence for minimum of last three years or more with satisfactory track record and fulfilling the criteria
as above for existing customers.
INCOME CRITERIA:
FOR SALARIED AND OTHER INCOME TAX ASSESSES:
Minimum net monthly salary of Rs.10,000/- for last three years (salaried class) or minimum net annual
income of Rs.120,000/- (for other income tax assesses)
FOR BUSINESS ENTERPRISES:
Minimum Net annual income/ Net Profit of Rs.1,20,000/- and above. Further, Interest and depreciation
charges will be added back for the purpose of arriving at Net Income/ profit
NATURE OF FACILITY:
Term Loan / Overdraft on monthly reducing Drawing Power (DP) basis.
LOAN AMOUNT:
FOR PERSONAL NEEDS: FOR BUSINESS NEEDS:
Minimum: Rs 1.00 lac > Minimum : Rs. 05.00 lac

Maximum: Rs 5.00 lac > Maximum: Rs. 300.00 lac
ASSESSMENT OF LIMIT:
The assessment of limit will be carried out keeping in view three parameters as under and limit shall be fixed least of the
following:
Maximum 80% of the realizable value of the property
Maximum three times of Annual Gross Income /Gross Profit, whichever is lower (In case of Term Loan).
Maximum Four times of Annual Gross Income /Gross Profit, whichever is lower (In case of overdraft).
For Loans allowed to Salaried employees and Other Income tax assesses - Net Income should be double
that of Monthly Instalment in case of Term Loan as well as Overdraft limit on monthly reducing DP basis.
For Loans allowed to Business Enterprises - Net income should be 1.5 times that of EMI in case of
Term Loan and that of interest amount (on full sanctioned limit) in case of Overdraft limit. Interest and
depreciation charges will be added back for the purpose of arriving at Net Income/ profit.
Note:-The income proof shall be Latest Salary Slip with Form 16 or Latest Salary Slip/Latest Income Tax
(IT) Return, for salaried class and Last 3 years Income Tax Return or assessment order & statement and
Balance sheet and Profit & loss account for all other individuals. computation of income
REPAYMENT PERIOD:
Loan amount together with interest to be repaid in maximum 120 Equated monthly instalments (EMI) OR
up to the age of 65 years, whichever is earlier.
In case of facility sanctioned in shape of Overdraft facility allowed on Monthly Reducing Drawing Power
basis, Drawing Power be reduced every month on pro-rata basis (instead of reducing the DP
equivalent to the amount of EMI
The overdraft facility should be renewed/reviewed annually.
Rate of Interest: As advised by Head Office from time to time.
LOANING POWERS: As circulated by H.O. time to time.
SECURITY:
Loans/advances shall be sanctioned against the Equitable Mortgage of the non encumbered
residential House/Flat or commercial or industrial property (in the shape of building/ Industrial Shed) self
20
occupied or vacant, having eligibility for coverage under SARFAESI Act.
That branch officials have in their possession detailed plans of the building (duly approved by the
competent authority) to be taken as security, duly confirming that it is constructed as per admissible laws
and rules and that there is no likelihood of its being demolished at a later date on the grounds that the
construction was unauthorized/illegal.
DOCUMENTATION: As given in Loans and Advances circular No. 43/2014 dated

23.09.2014, 65/15 dated 18.09.15,121/15 dated 23.12.15
UP FRONT FEES & DOCUMENTATION CHARGES: As advised by H.O. time to time.
Operative Circular: For detail refer loan circular No. 43/14 dated 23.09.14 & 65/15 dated
18.09.15
PERSONAL LOAN SCHEME FOR PUBLIC/LIC AGENT

ELIGIBIBILITY: -
Confirmed/permanent/regular employees of Central/State Govt./PSUs, Defence Personnel, LIC agents
aged below 60 yr. with more than 5 yr. of agency Professionally qualified practicing Doctors viz., MBBS, BDS
& above having annual income of Rs.4.00 lac and above and all reputed companies/Institutions (only with
the approval from RM), who are either drawing their salary through accounts maintained with our
branches or these employers agree for check off facility.
Note: Employees of all the above mentioned categories who are placed under suspension are not eligible
under the scheme during the period of their suspension.
Check-off facility means where the employer undertakes to deduct the monthly installment from salary till
liquidation of loan and undertake to attach terminal dues.
AMOUNT OF LOAN and MINIMUM NET MONTHLY INCOME:

Minimum amount of loan will be Rs. 50000/- and maximum amount of loan Rs. 4,00,000 or 20 times
monthly net salary whichever is lower subject to minimum Net monthly salary of Rs.12500/- for
Urban centres & Rs.10000/- for Semi-urban/Rural centres for his/her place of work/place of residence.
However, maximum ceiling will be Rs. 5,00,000/- for those Salaried persons having completed service of 3
years in the present organization & drawing net monthly salary of not less than Rs.30,000/-
However for Teachers & Defence personal, whose salary is being credited & disbursed through our branch the
minimum Net Monthly Income criteria shall be Rs.7500/-
For LIC agents: Minimum Loan Rs. 50000/- & Maximum Rs. 2.00 lac or equivalent to 15 times average monthly
commission.
For EMPLOYEES DRAWING SALARY THROUGH OUR BANK max loan amount will
be Rs.10 lac or 15 months net salary whichever is lower for those salaried persons who have completed
minimum three years of service in the present organization subject to minimum Net monthly salary for
Urban Centres :Rs. 40000/- Semi-urban/Rural Centres Rs. 30000/-
MARGIN:- Nil
REPAYMENT:
Term Loan: Remaining period of service OR Maximum 60 month in EMI from next month of disbursement.
Overdraft: The overdraft limit shall be adjusted within remaining period of service OR Maximum 60 month
by reducing Drawing Power.
LIC Agents:60 EMIs or up to 65 years of age of LIC agent.
Defence Personal: Maximum 36 EMI
Note: the carry home pay of an employee under no circumstances be less than
50% of his/her gross emoluments.
SECURITY:
Suitable third party guarantee acceptable to the Bank and ECS Mandate along with the PDCs
DOCUMENTATION:
21
a) Loan application form along with Bio data Form (Along with Forwarding Letter only in case of
Tie-up arrangement) b) Loan Agreement. c) Guarantee Deed d) Demand Promissory Note (In
case of Demand Loan) e) Irrevocable letter of authority (in duplicate) f) Letter of Authority
g) In case of defence personnel, their service No. and a copy of Identity card issued by the
employer h) Affidavit declaring existing and future liabilities i) Statement of account j) For Salaried -
Latest Salary certificate/Form No. 16 duly authenticated by the employer. For Non salaried - Copy of
receipted ITRs for the last three financial years. k) In case of loan to army officers, a copy of such
authority letter be sent to Controller of Defence Accounts {CDA (O)} Pune and in case of army jawans,
other permanent employees of military station headquarters and Para Military personnel, Undertaking
to be obtained from the Station Commandant/Unit In-charge.
RATE OF INTEREST: As advised by Head Office from time to time.
Upfront Fees and Documentation Charges: As advised by Head Office from time to time
GENERAL TERMS & CONDITIONS:

A letter to be sent to the employer by Registered post informing details of Personal loan raised
by the employee from the bank
It should be ensured that Irrevocable Letter of Authority from the employee borrower authorizing
his/her employer for remittance of salary to the branch is dispatched/delivered to the Department
preferably to the Drawing and Disbursing Officer (DDO)
In case of LIC agents proof on income: Form 16/IT Returns for the last three years.
Obtaining of CIRs is mandatory.
Operative Circular: for detail refer loan circulars: 36/2015 dated 15.06.2015
. PERSONAL LOAN SCHEME FOR PENSIONERS

ELIGIBILITY:
All types of pensioners including ex-serviceman drawing pension through our branches.
PURPOSE:
To meet personal needs including medical expenses.
LOAN AMOUNT:
Minimum Rs.25,000/- and Maximum loan amount shall be Rs. 3,00,000/- (Rupees three Lakh only) OR
amount equivalent to 18 times net monthly Pension whichever is lower. For defense pension 20 time of net
monthly pension.
Note:- Pensioners who are above 70 and up to 75 years of age, maximum loan should not exceed 18
months of pension amount OR Rs.1,50,000/-, whichever is lower.
Above 75 years maximum amount of loan not to exceeds 12 month of pension amount or Rs. 70000/- which
ever is less.
NATURE OF LOAN: Through Demand Loan/Term Loan/Overdraft on monthly reducing DP.
MARGIN:- Nil
RATE OF INTEREST:As advised by Head Office from time to time.

Upfront Fees and Documentation Charges: As advised by Head Office from time to time
REPAYMENT:
22
Maximum 60 EMI. However, in respect of pensioners above the age of 75 years, repayment period shall be of
maximum 24 months. However, sanctioning authority may allow repayment period maximum of 48
months depending upon merits of the case.
Monthly installment towards repayment and other deductions should not exceed Max. Permissible deduction
of NMP of monthly pension amount.
SECURITY:
Guarantee of spouse eligible for family pension OR of any other family member of means OR
a third party guarantee acceptable to the Bank of a person having sufficient means.
DOCUMENTATION:
a) Letter of Request b) Letter of Authority c) Letter of authority (in duplicate) in case of DPDO
Pensioners d) Loan Agreement e) Guarantee . f) Promissory Note (In case of Demand
Loans.
_____________________________________________________________________________
__________________
List of Operative Circulars:-for detail refer loan circular no. 80/15 dated
20.10.2015
Space for Amendments :
EDUCATION LOAN SCHEME -SARASWATI

ELIGIBILITY:
Should be an Indian National

Should have secured admission to a higher education course in recognized institutions in India
or Abroad through Entrance Test/ Merit Based Selection process after completion of HSC (10
plus 2 or equivalent).
Admissions under management quota shall be outside the scope of the Education Loan Scheme
COURSES ELIGIBLE:
Studies in India:
i) Approved courses leading to graduate/ Post Graduate decree and PG Diplomas
conducted by recognized colleges/universities recognized by UGC/ Govt./ AICTE/
AIBMS/ ICMR etc.
ii) Courses like ICWA, CA, CFA etc.
iii) Courses conducted by IIMs, IITs, IISc, XLRI, NIFT, NID etc.
iv) Regular Decree/ Diploma courses like Aeronautical, Pilot training, Shipping etc
v) Approved courses offered in India by reputed foreign universities
vi) Research Programmes recognized by designated academic authority.
Studies Abroad:
23
i) Graduation: for job oriented professional/technical courses by reputed
universities.
ii) Post Graduation: MCA, MBA, MS etc.
iii) Courses conducted by CIMA-London, CPA in USA etc.
iv) Regular Decree/ Diploma courses like Aeronautical, Pilot training, Shipping etc
recognized by competent regulatory bodies in India/Abroad.
Expenses Considered for loan: i) Fee payable to collage/school/hostel ii)
Examination/Library/ Laboratory fee iii) Travel expenses/passage money for studies
abroad. Iv) Insurance Premium v) Caution deposit, Building Fund/ Refundable security.vi)
Purchase of Books/equipments/instruments/uniforms. vii) Purchases of computer viii)
Any other expenses required to complete the course. Ix) Scholarships, fee waiver etc if
any available may betaken into account while computing loan.
QUANTUM OF FINANCE:
Need Based Finance, subject to the following ceilings:
Studies in India - Max. Rs.10 lac
Studies abroad - Max. Rs.20 lac
RE-IMBURSEMENT OF FEES:
Branch Manager may permit reimbursement of fees paid by the student/ guardian at the
time of admission or subsequent stages subject to some conditions.
MARGIN:
Up to Rs. 4 lac - NIL

Above Rs. 4 lac - Studies in India - 5%
Studies abroad - 15%
Scholarship/ assistantship be included in margin.

Margin may be brought-in on year-to-year basis as and when disbursements are made on a
pro-rata basis.
SECURITY:
Up to Rs. 4 lac: Parent(s)/guardian be made joint borrower (s). No Security.
Above Rs. 4 lac and upto Rs. 7.5 lac:
Besides the parent(s)/guardian executing the documents as joint borrower(s), collateral security
in the form of suitable third party guarantee be taken.
Above Rs.7.5 lac::
Parent(s)/guardian be joint borrower(s).Tangible collateral security of suitable value acceptable
to bank along with the assignment of future income of the student for payment of instalments.
INTEREST:
Servicing of interest during study period and the moratorium period till commencement of
repayment is optional for students.
Simple interest be charged during the Repayment holiday/ Moratorium period.
1% interest concession be provided, if interest is serviced during the study period and subsequent
moratorium period prior to commencement of repayment.
24
Penal interest @2% be charged on default/ irregular portion if loan above Rs. 25000/-
A rebate of 0.50% in rate of interest permitted to women beneficiaries.
Concession of 0.50 % in rate of interest be given to student where HGB score is 80 & above for fresh
sanction.
APPRAISAL/SANCTION/DISBURSEMENT:
Applications will be received directly at bank branches under due acknowledgement.

Rejection of loan application, if any, shall be done with the concurrence of the Regional
Manager.
REPAYMENT: Repayment of loan will be in equated monthly installment(EMIs) for as under.
For Loan up to Rs. 7.50 Lac -Up to 10 years.

For loans above Rs. 7.50 lac -up to 15 years
Repayment Holiday: Course period+ 1 year or Six month after getting job whichever is earlier.
LOANING POWER: As per loaning power Chart in force time to time.
CONFIDENTIAL REPORTS:
Borrower: NO CR as the loan application form will indicate required information.

Guarantor(s) /Joint Borrower(s): CR be complied on prescribed form for detailed CR
INSURANCE
Life Insurance policy of the student availing Educational Loan be taken at the option of the
student.
NO-DUES CERTIFICATE: Not to be insisted upon as pre condition. A

declaration/affidavit confirming that no loan from other banks may be obtained.
PROCESSINGCHARGES/ UPFRONT FEES:
Studies in India: Nil

Studies abroad: Upfront fee@ 1% with a minimum of Rs.10000/- +
service Tax be recovered which shall be refunded on
availment of loan amount.
DOCUMENTATION CHARGES: As advised by H.O. time to time.
JOINT BORROWER: Joint borrower should be parent(s)/guardian. In case married

persons, joint borrower can be spouse or parent(s)/ or parent(s) in law.
DOCUMENTATION:
(a) Loan Application (b) Agreement for Education Loan In case of Minor Student (c) Agreement
for Education Loan duly stamped - In case of Major student (d) On attaining majority,
confirmation from student be obtained (e) Agreement of Guarantee duly stamped be taken where
applicable (f) documents for creation of Mortgage if required (g) Confidential report of
Guarantor.(h) Demand Pronote (i) Consideration Voucher (j) Mortgage of IP if applicable.
25
DISBURSEMENT:
Education loan is to be disbursed in the shape of Term Loan in stages as per

requirement/demand directly to the institutions.
Loan to be sanctioned by the branch, branch nearest to the place of residence of the
parents.
Scheme code for all type of Education Loans will be TLRED
___________________________________________________________________
Operative Circular: Loan Circular No.76/12 dated 26.11.2012.
Space for Amendments:
38. EDUCATION LOAN SCHEME -PRATIBHA

ELIGIBILITY:

Admission in Regular full time Decree/Diploma course of Premium Institution.
QUANTUM OF FINANCE:
Studies in India -
Max. Rs.15 lac for 08 Institutes
Max. Rs. 10 lac for 57 institutes
Max. Rs. 7.50 lac for 38 Institutes.
time of admission or subsequent stages subject to some conditions.
SECURITY:
Co-Obligation of parents/guardian as Joint Co-borrower

No collateral security to be obtained.
The student borrower to be offered Optional Life Insurance Cover
INTEREST:
For loans (Repayable in 3 yrs & above)

Up to Rs. 15 lac. : Base Rate + 1.50% + TP
For loans (Repayable in less than 3 yrs)
Up to Rs. 15 lac : Base Rate + 1.50%
26
sanction..



DOCUMENTATION:
DISBURSEMENT:

parents.
Scheme code for all type of Education Loans will be TLRED>
___________________________________________________________________
Operative Circular: Loan Circular No.32/2005 dated 25.08.2005 ,28/12 dated 30.05.2012.
Space for Amendments
39. EDUCATION LOAN SCHEME -KAAMGAR

ELIGIBILITY:
27
Secured admission in a course run or supported by a Ministry/Dept./Organization of the Govt. or
a company/society/organization supported by National Skill Development Corporation or State
Skill Mission/Corporation.
COURSES ELIGIBLE:
i) Vocational/ Skill development courses of duration from 2 months to 3 years run or

supported by a Ministry/Dept./Organization of the Govt. or a
company/society/organization supported by National Skill Development Corporation or
State Skill Mission/Corporation.
ii) Institutes of high repute and their courses which are not recognized be considered for
education loans subject to approval from General Manager H.O.
Expenses Considered for loan: i) Tuition/Course fees ii) Examination/Library/ Laboratory
fee iii) Caution deposit, iv) Purchase of Books/equipments/instruments v) Any other
expenses required to complete the course.
QUANTUM OF FINANCE:

For course of duration:
Up to 3 months Rs. 20000/-
Above 3 to 6 months: Rs. 50000/-
Above 6 months to 1 years: Rs. 75000/-
Above 1 years: Rs. 150000/-
time of admission within six months or subsequent stages subject to some conditions.
MARGIN: Nil
SECURITY:
No collateral or third party guarantee be taken however the

Parent(s)/guardian to execute loan documents along with the students borrower
as joint borrower.
INTEREST:
sanction.
28
APPRAISAL/SANCTION/DISBURSEMENT:
Applications will be received directly at bank branches under due acknowledgement.

Rejection of loan application, if any, shall be done with the concurrence of the Regional
Manager.
REPAYMENT: Repayment of loan will be in equated monthly installment(EMIs) for as under.
For courses up to 1 years -In 2- 5 years.

For courses above 1 year -In 3 to 7 years
Repayment Holiday:
Course period up to 1 year: 6 Months from the completion of course
Course period above 1 year: 12 Months from the completion of course

INSURANCE
Life Insurance policy of the student availing Educational Loan be taken at the option of the
student.

PROCESSINGCHARGES/ UPFRONT FEES: Nil

DOCUMENTATION:
DISBURSEMENT:

parents.
Scheme code for all type of Education Loans will be TLRED>
29
Space for Amendment:-
________________________________________________________________
_____________
TRANSPORT LOAN SCHEME
OBJECTIVE: To assist transport operators (existing as well as new entrants) and to create
Employment Opportunities for the borrowers.
ELIGIBILITY:
h) An individual or an association desirous of owning transport vehicle(s), for carrying
passengers or goods on hire.
i) The borrower (s) hold the necessary driving license or engage driver (s) possessing
valid license to operate the type of vehicle for which credit is sought.
j) The borrower (s) should have been granted a permit by an appropriate authority to
ply vehicle (s) for passengers or goods traffic for hire.
k) The borrower(s) should be well experienced and have the aptitude in the profession.
l) Transport operators owning one or more trucks/buses are also eligible.
EXTENT OF LOAN FOR NEW TRUCK(S)/BUS (S) :
Up to 90% loans of the invoice cost of the vehicle inclusive of the cost of chassis,
construction of body thereon or score obtained as per RBL.
For the purpose of valuation of the vehicle as a whole, the chassis should be valued
at dealers invoice rate while the cost of construction of a body thereon should be
based on the quotations submitted from established body builders by the proposed
borrower which shall be ascertained by the BM
EXTENT OF LOAN FOR OLD VEHICLE(S) :

Advances will be made subject to the following terms & conditions:
i) Valuation of the vehicle for the purpose of advance should be the prevalent price of
the new vehicle less depreciation @ 20% p.a. for a period starting from the date
when the vehicle was first put on the road. Before allowing advances to finance
purchase of an old vehicle, it must be ascertained that the vehicle is road worthy.
ii)Advances will not be allowed for the purchase of a vehicle which is more than 3 years
old.
i) The usual margin of 25% on the valuation of the vehicle, worked out as per clause
(s) above, will be strictly maintained.
SECURITY :
Vehicle purchased with the amount of the loan will remain hypothecated to the bank as
security of the advance and shall be registered with the Motor Vehicles Authority in the
joint names of the borrower and the bank as Hypothecator and the Hypothecatee
respectively.
With a view to provide constructive evidence of the Banks charge over the Truck/Bus
hypothecated to the Bank, lending branches should get the words Truck/Bus financed by
30
Himachal Pradesh Gramin Bank, BO: _______________________ painted on the truck/bus at
a conspicuous place.
COLLATERAL SECURITY :
FOR LOANS UPTO RS.5.00 lakh: No collateral security by way of guarantee or mortgage
of immovable property will be asked for or accepted in case of loans upto Rs.5.00 lakh
FOR LOANS ABOVE RS.5.00 lakh*: Collateral security equivalent to amount of
advance by way of:
Equitable mortgage of immovable properties
Or Pledge of FDRs/NSCs/IVPs/KVPs
Or Pledge of other bankable security like shares/debentures/bonds of adequate value
Or Third party guarantee(s) having net means double the loan amount.
*NOTE: No collateral security or third party guarantee should be taken for loans up to Rs.
50 lakh covered under Credit Guarantee Scheme of CGTMSE.(Presently not
applicable)
MARGIN
a) 10 %-25% as per RBL score of the prospective borrower given in the Annexure.
b) For Old Vehicle: 25% (on the depreciated value calculated @20% p.a. on the
prevalent cost price of new vehicle or market value, whichever is lower).
c) For new buses : For ex-servicemen sponsored by Directorate
- General Resettlement 15% | Scheduled margin

| to be built up in 3 years
- National Permit Holder 20% |
MARGIN
FOR OLD VEHICLES 25% (on the depreciated value calculated @20% p.a. on the
prevalent cost price of new vehicle or market value, whichever is lower).
INTEREST : (Subject to change from time to time as per Banks Guidelines)a

INSURANCE :
The borrowers will be required to obtain a comprehensive insurance policy including civil
commotion and riots in respect of vehicle (s) hypothecated to the bank in the joint name of
the borrower(s) and the bank as Hypothecator and Hypothecatee respectively.
The Insurance Policy will be deposited in the lending office.
REPAYMENT
(FOR NEW VEHICLES)

60 months by monthly instalments. The RDMs under their discretionary powers may
sanction upto 72 months on merits of case.
(FOR OLD VEHICLES)

In case of old (second hand) vehicle, repayment will start one month after the
disbursement of the loan and loan will be repaid with interest as under:-
1 year old : 48 months
2 years old : 40 months
31
3 years old : 30 months Sanctioning Authority
Recovery percentage in Transport Advances
on yearly basis
Current dues Overall dues
Branch Manager 80 65 and above

RDMs 70 Over 60 and upto 65
OVER DRAFT LIMIT TO SMALL ROAD TRANSPORT OPERATORS CAN ALSO BE

SANCTIONED. AS PER LOAN CIRCULAR NO. 56/2013 dated 20.09.2013
_____________________________________________________________________________________Ope
rative circulars: Loan circular no. 56/13 dated 20.09.13
. SCHEME FOR FINANCING VEHICLES (CVs) UNDER TIE-UP ARRANGEMENT WITH

CAR MANUFACTURER/DEALERS
1. PURPOSE To purchase:
1.1 New Car/Van/Jeep/Multi Utility Vehicle (MUV) or Sports

Utility Vehicles (SUV).
1.2 Old car/van/jeep/MUV/SUV, which are not older than

three years.
2.ELIGIBILITY 1. For private use: Individuals.

1.1 Joint borrowers are also eligible, i.e.,
parent(s)/spouse/ Earning Children. However, out of
these only one joint borrower shall be permitted.
Further, in case of joint borrowers an option be got
exercised to specify the name of the applicant borrower in
whose name they want to get the vehicle registered.
1.2 Business concerns (corporate or non-corporate).
1.3 MINIMUM INCOME CRITERIA FOR SALARIED
CLASS:
1.3.1 Minimum net monthly salary / pension/ income -
Rs.20000/-. (Income of Parent(s)/Spouse/ Earning
Children can be taken into account for determining
loan amount/eligibility. In such cases, the
parent(s)/spouse/ Earning Children be made co-
borrower). However, out of above only one co-
borrower shall be permitted and only his/her income
shall be taken into consideration for determining the
loan amount.
1.3.2 Regional Managers and above may relax the income
criteria on case to case basis considering the value of the
account and the banking relations of the prospective
32
borrowers.
3.COVERAGE Purchase of new vehicles manufactured by car

manufacturing companies and sold through their dealer
network for commercial purposes or for captive use.
[ [
4. NATURE OF Term Loan

FACILITY
5.PERIOD OF LOAN Maximum 7 years (New Vehicles) and 5 years (Old Vehicles)
6. AMOUNT OF LOAN 1. For individuals/Proprietorship concerns:
1.1 25 times of Net Monthly Salary / Pension/ Income with a ceiling

of Rs.100 lac (for one or more vehicles).
1.2 General Manager & Chairman may relax the criteria with
regard to number of times subject to monthly reporting of
such cases to Head Office.
1.3 General Manager & Chairman may relax the criteria and
sanction need based amount within their vested loaning
powers for cases falling under their powers as well as those
falling under the powers of lower authorities.
1.4 Income of Parent(s)/Spouse/ Earning Children can be taken

into account for determining loan amount. In such cases, the
parent(s)/spouse/ Earning Children be made co-borrower.
However, out of above only one co-borrower shall be
permitted and only his/her income shall be taken into
consideration for determining the loan amount.
2. For Business Concerns (Corporate or Non-Corporate)
2.1 No ceiling of loan amount (for one or more vehicles).

Sanctioning authority to deal with such proposals as
conventional term loan after being satisfied about the earning
/ repaying capacity of the business concern and shall
exercise powers as specified in the Scheme.
2.2 Car loans financed to business concerns for personal use of

their executives, i.e., other than for use in the business, shall
be outside the purview of corporate banking and may be
sanctioned by officials under their vested loaning powers,
even in cases where the existing facilities have been
sanctioned by a higher authority.
33
7. MARGIN 1. For New Vehicle: (i) 15% of on-road price inclusive of one time
road tax & insurance. RM and above at their discretion may
reduce margin to 10% in deserving cases.
2. Margin in case of Tie up arrangement with Manufacturer/

Dealer: 10% of on-road price OR NIL on Ex-showroom price,
i.e., (100% financing of Ex-showroom price).
3. For Old Vehicles: 30% of the value of the vehicle.
3.1 (Valuation of old vehicles to be done at current invoice price of

the new vehicle less depreciation @ 15% p.a. on straight line
method. Proportionate depreciation for any part of the year to
be arrived at/calculated on quarterly basis).
8. RATE OF A. Floating rate of Repayment Interest Intt.

INTEREST interest option: Period Rate Code
1. To Up to 7 10.50% TLPV9
(Subject to change individuals/corporate years
from time to time where HPGB score is
60 & above OR where
as per the collateral security is
policy/instruction available upto 100% or
of RBI/GoI/Higher above in the form of
Authorities) mortgage of Immovable
Property (IP).
2. Others Less than 3 11.25% TLP10

Years
3 Years & 11.75% TLP11
above
Fixed rate of interest option:
1. All category Upto 7 10.65% TLP12
years (fixed
with a
reset
clause of
3 years)
9. UPFRONT FEE Under HPGB MONSOON BONANZA SCHEME FULL

WAIVER OF UPFRONT/PROCESSING FEE AND
DOCUMENTATION CHARGES ON CAR LOAN SCHEMES
w.e.f. 01.07.2015 to 31.12.2015
1) Third party guarantee/Collateral Security is waived

10. SECURITY in following cases:
(i) Permanent Employees of Central Govt./State

Govt./PSUs/MNCs/Listed Companies at BSE or NSE
(whose shares are actively traded and quoted above
par).
(ii)For other than salaried class borrower(s) where ex-

showroom cost of the car is exceeding Rs. 6.00 lacs.
34
In all other cases: Third Party Guarantee/ Collateral
Security acceptable to the Bank.
Post Dated (Advance) Cheques in all cases must be

obtained.
Incumbents Incharge of Scale IV branches and Regional

Managers may waive the guarantee/collateral security on
merits of each case.
11. INSURANCE To obtain comprehensive insurance policy with the agreed
Bank clause and policy to remain deposited with the Bank
12. DUE DILIGENCE The bank will conduct its own due diligence (including pre
and post sanction visits)
13. SANCTIONING As per the Banks Scheme of Delegation of financial powers

AUTHORITY for term loans. (Loan Circular No. 35/2014 dated
20.08.2014
14.DOCUMENTATION The following documents to be obtained:
i) Application cum appraisal / sanction Form.

ii) Proforma Invoice.
iii) Letter of Sanction.
iv) Letter of Hypothecation.
v) Irrevocable letter of authority from borrower authorizing
the employer to remit salary/instalment and other amount
payable to the Bank cum letter of acknowledgement from
employer.
vi) Guarantee Deed (wherever applicable).
vii) Recovery/ Repayment of EMIs in Car loan accounts be
considered through PDCs /Standing Instruction. Mandate
of the customers for debiting their accounts through
Advance cheques (CTS-2010) signed by the borrower
repaying monthly instalments under the cover of letter be
obtained.
Further, wherever ECS/RECS (debit)/ Standing Instructions

are obtained, 2-3 PDCs (CTS-2010) are to be procured/
maintained by the branches to keep remedy alive under
Section- 138 of Negotiable Instruments Act.
viii) In case of financing to companies, Document evidencing

Registration of charge be procured and held on record.
ix) Description of the vehicle to be hypothecated.
x) An undertaking that the vehicle would be driven by a

valid driving license holder to be obtained.
It should be personally ensured by the Incumbent that draft
35
15.DISBURSEMENT representing cost of the vehicle is delivered to authorized
dealer/seller of the vehicle and receipt/bill in joint names is
obtained. While making delivery of the proceeds of the vehicle,
an undertaking from the Dealer/ Authorized agent be
obtained and held on record that in case of cancellation of
booking of vehicle for whatsoever reason, the proceeds shall
be refunded directly to the Bank and in any case should not
be refunded/ handed over to the borrower.
16. INSPECTION At the time of purchase/delivery of the vehicle and

thereafter at least once in a quarter. In case of persistent
defaults, inspection to be held at more frequent intervals.
17.REPAYMENT For New Car/Van/Jeep/MUV/SUV: The loan amount

together with interest is to be repaid maximum in 84
equated monthly installments comprising of principal
and interest commencing from the succeeding month.
5.2 For Old Car/Van/Jeep/ MUV/SUV: The loan

amount together with interest is to be repaid
maximum in 60 equated monthly installments.
5.3 For new/old car/van/jeep/ MUV/SUV: In case of

persons engaged in agriculture & allied activities,
sanctioning authority may fix repayment schedule at
half yearly/yearly intervals coinciding with the time
of harvest. However, the repayment period should not
exceed 7 years (new vehicles) or 5 years (old vehicles).
[
18. AUTHORIZED All branches of Himachal Gramin Bank.

BRANCHES
19. FOLLOW UP The branch shall maintain all the necessary follow up and
control post disbursal as per extant instructions for
financing transport operators, like carrying out inspection,
ensuring entry of Banks name in the RC book and copies
of RC/route permit /insurance to be placed on Bank
record. Insurance to be diarized and kept alive.
The vehicle to bear prominently the legend Hypothecated

to Himachal Pradesh Gramin Bank ____ branch. Or Our
Bankers Himachal Pradesh Gramin Bank __________
branch.
Any default in the term loan repayment to be immediately

taken up with the borrower so that slippage is arrested
immediately. Close monitoring of repayment will be the
corner stone for follow up of the loans under this tie-up. In
36
case of delinquency, immediately take up with the
Manufacturer /dealer for assistance.
Alternately the original RC books to be presented annually

for name of the borrower and our Bank as hypothecatee.
Operative Circular: 75/2015 dated 21.10.2015,122/15 dated 30.12.15
_______________________________________________________________________
SCHEME FOR FINANCING TWO WHEELERS TO PUBLIC

ELIGIBILITY:
An individual in the age group of 18 years and 60 years.
Students 18 years and above till gainfully employed with salaried parents as co-borrower
drawing salary from our bank
Existing customers having satisfactory track record of six month.
Business Concerns (Corporate/Non-Corporate) should be profit making for atleast last
previous two years.
Minimum net monthly income Rs. 10000/-
LOAN AMOUNT: Max Rs. 1.00 lakh
for Moped Max. Rs.10000/-
MARGIN: (as %age of on road price)
a) 10% for those drawing salary from our Bank and / or with check off facility.
b) 25% for all other borrowers
On Road Price means Invoice Value + Cost of one time Road Tax + first time Insurance
premium of one year
ELIGIBLE AMOUNT
Salaried persons A maximum of 10 months gross emoluments or Rs. 1 lakh whichever
is less.
Non-salaried persons - Two times the gross average annual income as per last three
Income Tax Returns.
In case of proprietorship concerns, partnership firms and companies Two times of
average annual cash accruals (Profit After Tax i.e. PAT + Depreciation) as per their last
three years Balance Sheet/Profit and Loss accounts.
Pensioners 18 times of monthly pension.
Farmers Depending upon Farmers Income (to be assessed by the Branch Manager)
Cut Back (Total Deductions) including EMI of proposed loan shall not exceed 50% of
Total Gross Income.
INCOME CRITERIA/PRE - REQUISITES:
Minimum net monthly income of Rs. 10,000/- p.m. In case of farmers, where no income
proof is available income be assessed by Branch Manager.
In case of students, income / salary proof of parents/guardians, who will be co-
borrower, be considered.
Income of spouse can be taken into consideration for determining the income criteria
provided satisfactory income proof is produced.
Income of Business concerns be verified from Income Tax Returns filed and Challans for
tax deposited. documentary evidence less deductions for various loan instalments,
provident fund, income tax and other statutory dues etc.
37
REPAYMENT: For Scooter/ Motor cycle : 60 months EMI
For Scooterrete: 30 Month.
For Moped 24 Month
SECURITY:
Bill and receipt of Draft/Payorder to be in the joint name of borrower
RC with Banks lien mark on the vehicle.
Post Dated Cheques
GUARANTEE:
Loan upto Rs. 25,000/- : No Guarantee

Loan above Rs. 25,000/- : Suitable guarantee acceptable to the Bank.
DOCUMENTATION:
a) Loan application b) Performa invoice c) Copy of valid Driving License (to be verified from
the original) f) Income proof (wherever applicable) g) Where salary is received in the Branch
authority letter for recovery of monthly instalments from the salary account. h) In case of check
off facility undertaking from the concerned Department for deducting monthly instalment. i)
Application cum appraisal cum sanction form for vehicle loan j) Letter of Hypothecation for
vehicle loan k) Description of vehicle l) Agreement of Guarantee m) Irrevocable letter of
authority from the borrower (in duplicate) n) Minimum 12 post dated cheques o) Verification
of vehicle p) Comprehensive insurance policy with agreed Bank clause q) Statement of account (r)
Undertaking for Driving License
______________________________________________________________________
_______________
_____________________________________________________________________________________
Scheme For Financing Traders For Working Capital
Objective:
To meet the Working Capital requirements of the retail traders and wholesale traders,
distributors/agencies, who deals in goods/ commodities (indigenous or imported.
Eligibility:
Traders, who are individuals, firms, HUF, Cooperative societies registered under any law relating to
Cooperative societies and companies and are dealing in goods/ commodities for consumption,
consumables. Grocery, merchandise, mineral oils (which also covers petroleum dealers, lubricant
dealers, petrol pumps etc.), distribution of fertilizers & other assets to be used in trade and
industries, etc.
Traders should comply with applicable statutory requirements, such as State/ Central Sales
Tax Registration certificate, License under shops & commercial establishment Act,
Registration with Excise & Taxation Department etc.
38
Purpose:
Financing of stock in trade, book debts, ( not older than four months) and other assets to be used in
trade.
Loan Amount:
Working Capital Limit may be sanctioned need based to the retail /wholesale traders, distributor, or
dealer in goods/ commodities (indigenous or imported).
Margin:
25% -40%, keeping in view nature of stocks, price fluctuation, shelf life etc. However in respect of
following categories the margin should be kept 40%.
Limited shelf life in case of Food Products, medicines etc.
Perishable nature of goods, e.g.vegetables/ milk products, etc.
Obsolescence due to technological advancement, changes in consumer tastes/ preferences, change

in fashion, e.g. computer, fashion garments and cosmetics etc.
Method Of Assessment:
Three methods for assessing working capital limits
Nayak Committee b) Tondon committee c) Cash budget method.
NAYAK COMMITTEE: Annual projected turnover method
Eligibility: Small Enterprises having aggregate sanctioned working capital fund based (WCFB) limit
up to 5 crore and non SSI 2 crore.
Method of computation:
Working capital requirement: 25% of annual projected turnover
Sanction of Working Capital Limit: 20% of the projected turnover
Margin ( Borrowers contribution) : 5% of their annual turnover.
a)Tondan Committee 1st Method b) Tondan Committee 2nd method

Total Current Assets Total Current Assets
Less: OCL (CL other than short term Less: OCL (CL other than short term
bank borrowable) bank borrowable)
Working capital Gap WCG Working capital Gap WCG
Less 25% of WCG Less 25% of TCA
MPBF (Max. Permissible Bank Finance) MPBF (Max. Permissible Bank Finance)
39
Current Ratio Current Ratio
Cash Budget Method: On the basis of cash flow statements, gaps are identify on quarterly basis ,
applicable to seasonal industry, software, construction , film production etc.
Repayment:
Working Capital limits shall be sanctioned for a period of one year and shall be renewed annually.
Rate of Interest: As advised by Head Office from time to time.
Security: Legally enforceable charge by way of hypothecation on stocks/ book debts/ assets of
borrower, be created.
Collateral Security
Up to Rs.5.00 lakhs:
Suitable third party guarantee having net means (IPs) double the loan amount. However, where
party offers mortgage of immovable property it should be accepted.
Above Rs. 5.00 Lakhs:
.Mortgage of immovable property of borrower/ guarantor(s) of adequate value
And
Third party guarantee having net means (IPs) double the loan amount
Submission of Stock Statement:
*In case of cash credit limit of up to Rs. 20.00 lakhs stock statements be obtained quarterly subject
to the condition that account is regular.
*In case limit up to Rs. 2.00 crore if collateral security is above 75% of the limit sanctioned the stock
statement be obtained quarterly.
*In other cases monthly statement of stock in trade should be obtained and drawing power in the
account should be calculated accordingly by maintaining stipulated margin, as case may be, on the
value of the stock.
*The quarter for this purpose will be May, August, November & February.
Loaning Power: As advised by Head Office from time to time.
Documentation: Loan documents as prescribed by the bank to be obtained, depending upon nature
of facility sanctioned.
Insurance : Stock/ Assets charged br got comprehensively insured with agreed bank clause at borrowers
cost and the policy to remain with bank.
40
LAGHU UDYAMI CREDIT CARD (LUCC) SCHEME

PURPOSE:
To provide adequate and timely assistance to Small Business units, Retail Traders, Artisans,
Village industries, Micro & Small Enterprise , Professionals and Self Employed persons to
meet their working capital requirements.
ELIGIBILITY:
All existing customers of the above categories who are dealing with our bank for the last
three years satisfactorily and enjoying loan/operative limit upto Rs. 20 lakh.
Conversion to LUCC will be considered in the next quarter of completion of three years
of satisfactory operations of the account.
ASSESSMENT OF CREDIT CARD LIMIT:
For small Business, Retail Traders etc 20% of the annual turnover declared for tax
purpose or last 12 months turnover of genuine trade transaction.
For professionals and Self Employed persons, 50% of their gross annual income as per
Income Tax Return.
For Micro & Small Enterprise(Manufacturing & Processing), Micro & Small Services &
Business Enterprises the assessment as per Nayak Committee recommendations.
EXTENT OF LIMIT:
Maximum upto Rs. 10.00 Lakh.
CC up to Rs. 10 lakh can be sanctioned at branch level within user loaning power.
Branches having NPA of more than 2.5% under CC Hpy. Limit the extent of limit will be
Rs. 10 lakh
NATURE OF LIMIT: Cash Credit
MARGIN : 25%- 40% keeping in view, nature of stock, price fluctuation etc.
RATE OF INTEREST: As advised by Head Office time to time.
SECURITY:
Up to Rs. 5 lakh
ii) Hypothecation of stock
iii) Third party guarantee with net means of double the amount of loan.
Above Rs. 5 lakh.
i) Hypo. of Stock
ii) Mortgage of property
(Mortgage can be waived if liquid security to the extent of 50% of the form
of FDR/ NSC/LIC etc offered as collateral security)
iii) Third party guarantee
DOCUMENTATION:
a) Loan application b) Demand Pronote c)Consideration voucher d) Hpy.
Agreement e) Guarantee letter/deed f) Stock report g) Financial Statements h)
No dues certificate i) ITR j) copy of necessary licensees etc
VALIDITY PERIOD OF LIMIT:3 years subject to annual review. Request for

enhancement in limit could be considered at the time
of review with in the ceiling of Rs.10 lakh/20 lakh.
LOANING POWER: As advised by H.O. time to time.
41
SERVICE CHARGES FOR ISSUE OF CARD: As advised by Head office time to time.
INSURANCE:
Up to Rs. 25000/- Not be insisted.
Above Rs. 25000/- Insurance as per banks rule be got done.
GENERAL INSTRUCTIONS:
i) All existing customers who meet the eligibility criteria may be covered under LUCC.
ii) NPA norms are applicable as in CC limit.
iii) Cheque book shall be issued and marked as LUCC
iv) Sanction letter/Statement of account/ Pass Book be issued as in CC Limit.
v) Account holder would not be required to submit periodic stock statements of financial
statements for renewal of LUCC.
vi) Supplementary agreement & Consent letter from guarantors required, if converting
present CC limit into LUCC.
vii) Proper record of periodical inspection of stock should be maintained.
viii) The code for this scheme under CBS system will be CCOTH and ledger/partition
Number within the scheme will be 8.
ix) Interest Table Code:
Up to Rs. 2lakh LUCC1
Above Rs. 2 lakh to 5 Lakh LUCC 2
Above Rs. 5 lakh LUCC 3
___________________________________________________________________________
PRADHAN MANTRI MUDRA YOJANA (PMMY)
Micro Units and Development Agency Ltd. (MUDRA) was launched by the Honble Prime
Minister on April 8, 2015, as a new financial entity, for developing and refinancing last mile
financial intermediaries like Banks, NBFCs, MFIs, etc. who are in the business of lending to
smaller of the micro enterprises in manufacturing, trading and service sector. As per
NSSO estimate, about 5.77 crore such units exist in the country and a great majority of them
are outside the formal banking fold and are unable to sustain or grow due to lack of finance or
relying on informal channels, which are very expensive or unreliable. On the same day
Pradhan Mantri MUDRA Yojna was launched to fund the unfunded by bringing such
enterprises to the formal financial system and extending affordable credit to them.
2. The banking sector consisting of Commercial Banks, RRBs and Co-operative Banks can play
an important role in extending credit to this sector. It is felt that there is a need to give a
special boost to Bank finance to this segment on a mission mode, considering the enormous
task in reaching to the large number of such units, currently excluded from the formal banking
system.
3. This segment mainly consists of non-farm enterprises in manufacturing, trading and

services whose credit needs are below Rs. 10.00 lakh. It has been now decided that the
42
loans to be given to this segment for income generation will be known as MUDRA loans
under the Pradhan Mantri MUDRA Yojna (PMMY) and branded accordingly. The overdraft
amount of Rs. 5,000/- sanctioned under PMJDY may also be classified as MUDRA loans
under PMMY.
4. All advances granted on or after 8th April, 2015 falling under this category be classified
as MUDRA loans under the PMMY. All such loans can be covered under refinance and/or
credit enhancement products of MUDRA. The application forms for such loans shall also carry
the name Pradhan Mantri MUDRA Yojna. Further, MUDRA will work on creating a common
charter applicable to PMMY loans which is to be adopted by all the banks. The charter will
apply to all eligible loans, irrespective of the fact whether or not the bank concerned
obtains/receives support from MUDRA for such loans.
5.All loans provided upto Rs. 10.00 lakh, to Non-Farm Sector for Income generating activities,
are to be covered under the monthly report to be submitted by all the branches to their
Regional Offices.
Categories of MUDRA Loans.
Shishu Loan: Loan up to Rs. 50000/- in NFS categories
Kishore Loan: Loan from Rs. 50001 to 5.00 lakhs in NFS categories
Tarun Loan: Loan above Rs. 5.00 Lakhs to 10.00 lakhs in NFS categories
Govt. Of India, Ministry of Finance has advised the Banks to launch MUDRA Card for providing hassle free
working capital needs of the borrowers. Accordingly, our bank has decided to launch MUDRA Card.
The detailed account operational guidelines are as follows:-
1. ELIGIBILITY CRITERIA
All non-farm sector credit activities which are eligible for classification under PMMY guidelines.
2. PURPOSE:
To fund the unfunded by bringing such enterprises to the formal financial system and extending affordable
credit to them and roll out Pradhan Mantri MUDRA Yojna (PMMY) under advances upto Rs. 1 Lakh.
3. EXTENT AND NATURE OF LIMIT OF CARD:
The need based limit of PMMY loan be fixed with a maximum of Rs. 1, 00,000/- on case to case basis, after
analyzing credit needs and repayment capacity of the borrower. The card limits are fixed at a maximum of Rs.
20,000/-. Further the individual card limits are to be fixed based on the total credit limit sanctioned to the
borrower and are as follows:
i) For cases upto Rs. 20,000/-
-OD- upto Rs. 20,000/- to be given through MUDRA card in the shape of composite loan.
ii) For cases above 20000/- and upto 1 lacs
-For WC-OD-20% of entire sanctioned limit subject to max. Rs. 20,000/- in the shape of MUDRA Card.
43
- For fixed assets/equipments TL (balance amount of sanction limit)
4. Area of operation:
The scheme is to be implemented by all branches.
5. ISSUE OF MUDRA CARD:
(i) The beneficiaries under the scheme will be issued a non personalized MUDRA card, which is based on
Rupay platform.
(ii) The branch will mobilise the application for MUDRA card for achievement of target under PMMY loans.
(iii) After fixation of the limit and completion of the documentation formalities, the applicant will be issued a
MUDRA card valid for three year.
iv) For all other term and conditions pertaining to cash withdrawal, all card related charges,
blocking/hotlisting of card, card issuance process will be circulated in due course.
6. RENEWAL OF THE CARDS:
(i) The MUDRA card will be valid for 3 Years.
(ii) Limits will be reviewed annually on similar lines as normal cash credit account.
(iii) The card will be renewed at least one month before the expiry of the current card on a simple hand
written request from the card holder.
7. REPAYMENTS:
TL repayment- 33 months
Installments of TL to be recovered from OD account by way of standing instructions.
8. RATE OF INTEREST: As advised by Head Office time to time. Maximum 12%
9. PROCESSING CHARGES:
Up to 50,000 NIL
Above 50,000 0.50%
8. MIS V Details in CBS

All advances under MUDRA will be classified under MSME (Manufacturing/service/Trading) depending upon
the nature of non-farm entrepreneurial activities. Further outstanding under MUDRA will be classified under
priority sector lending.
9. MONITORING OF CARD BASE:

Regional Offices are required to monitor the branches regularly on daily, weekly and monthly basis from the
reports generated as per the targets allocated to them under PMMY.
10. OPERATIONAL GUIDELINES AND ACCOUNTING PROCEDURE:

Separate accounts be opened under the scheme.
Other guidelines issued by Bank for MUDRA Loans from time to time shall be compiled with.
____________________________________________________________________________________
44
Operative Circular: Loan Circular No. 31/2015 dated 18.06.2015 & 31A/2015 dated
04.07.2015,61/15 dated 28.08.2015, 64/15 dated 09.09.2015
PERDHAN MANTRA JAN DHAN YOJNA- OVERDRAFT FACILITY
Overdraft upto Rs 5,000/- in PMJDY Accounts Modalities of Scheme
Purpose General purpose loan to provide hassle free credit

to low income group / underprivileged customers
to meet their exigencies without insistence on
security, purpose or end use of the credit.
Eligibility
(Individuals only) a) BSBD accounts, which are operated satisfactorily

for at least six months
b) OD to be granted to the earning member of
family, preferably women of the house.
c) There should be regular credits under DBT/ DBTL
scheme/other verifiable sources
d) Account should be seeded with Aadhaar for
avoiding duplicate benefit
e) BSBD account holder should not be maintaining
any other SB account with any Bank/branch to
ensure compliance with RBI directives.
f) Age of applicant between 18 years to 60 years
(Not eligible: Minors, KCC/GCC borrowers, more
than one member of the same family)
Nature of facility Running OD facility in SB account
Period of Sanction 36 Months subject to annual review of account
Loan amount
a) 4 times of Average monthly balance
b) or, 50% of credit summations in account during
the preceding 6 months
c) or, Rs 5000/- whichever is lower
Security Nil
Interest rate Not exceeding 2% above base rate
Processing Fee Nil
Sanctioning authority Branch
Disbursement Withdrawals through branch/BC/ATM/POS
Documents i) Loan application-cum-undertaking

ii)Arrangement letter duly accepted by the Account
Holder
45
Inspection & follow up Inspection waived for all standard assets. All
irregular accounts to be followed up closely.
Other features i)Mobile Number of the borrower/family members

to be kept on record
ii) Aadhaar number will remain seeded with NPCI
during the period of loan. Move-out of Aadhaar for
such accounts will be restricted by NPCI.
iii) SBOD account will become primary account to
receive all subsidies/benefits. DBT should also be
frozen to such accounts till the currency of loan.
iv) NPCI will provide repository of Aadhaar Seeding
for SBOD to the Banks to verify any earlier seeding.
an accounts will be subject to IRAC norms.
ADVANCE AGAINST BANK DEPOSITS
1.Eligibility: i) Advance may be granted to a depositor against a deposit standing in the

Name singly or jointly.
ii) Advance made to a guardian competent to borrow.
iii) Advance can be made to a proprietary concern, Partnership firm. Trust etc
if the deposit stand in their name.
2.Margin:
Existing guideline Revised guideline
Maturity period remaining at Margin% Maturity period remaining at Margin%
the time of granting (Minimum) the time of (Minimum)
advances. Granting advances.
Up to 3years 7.50 Up to 2 years 5.00
Above 3years and up to 4 10.00 Above 2 years and up to 3 7.50
years. years.
Above 4 years and up to 5 12.50 Above 3years and up to 4 10.00
years. years.
Above 4 years and up to 5 12.00
years
Above 5 years. 20.00
Advances against third party deposits : 25.00% (minimum).
Margin for advances to members of staff/honorably retired/voluntarily retired/widow of staff:

Advance up to Rs. 3 lacs : 5%
Advance above Rs. 3 lacs : As applicable for public.
3. Rate of Interest: 1% higher on term deposit w.e.f.04.08.15.

Particulars Rate of interest
Rupee Loans & Advances against term deposits standing in the 1% above the rate
name of borrowers (singly/jointly or as a guardian in case of allowed on deposit.
individual borrowers) including NRE deposits.
46
Advances to borrowers against third party term deposits 2% above the rate
including NRE deposits standing in the name of individuals or allowed on deposit.
entities other than individuals e.g. Partnership concerns,
societies, trusts, Public/Private Ltd. Cos. etc.
At par for Staff//honorably retired/voluntarily retired/widow of staff:
4.Restriction: No advance be allowed to customers Against Deposit of other Banks.
5.Limit Expiry: B.C.Letter in loan accounts against the security of bank deposit not insisted upon
unless the debit balance exceeds the value of security or deposit under pledge
matures after 2 years and above from the date of advance.
6.Repayment: Advances against Fixed deposit should be liquidated on maturity

and should not be allowed to continue after the date of maturity.
7.Documatation: Demand Loan.

a) Application/letter of pledge/lien.
b) Consideration voucher duly receipt across revenue stamp.
c) FDR/RD Pass Book duly discharged across revenue stamp.
d) Annexure if applicable.
Overdraft Limit.
a) Application/letter of pledge/lien.
b) Agreement of COL stamped.
c) FDR/RD Pass Book duly discharged across revenue stamp.
d) Annexure if applicable.
e) AOF and specimen signature.
8.Penlty: On premature closer no penal cut will be levied i.e interest will be
paid at the rate applicable for which deposit has run without charging any penalty.
Branches are advised to ensure that at no point of time outstanding in overdraft/loan
account against the bank deposits exceeds the value of security.
Operative Circular : Loan Circular No.5/14 dated 14.01.14,43/15 dated 07.07.15,48/15

dated 03.08.15
_____________________________________________________________________________________
REG: Drawing of Credit Information Report (CIR)
Branches are required to draw Credit Information Reports(CIR) for consumer category borrowers, new as well
as existing, using Bureau One Link as under:-
For loan amount less than If Score is required

Rs. 5 Lac One CIR from CIBIL or Experian or Equifax
If score is not required
One CIR from CIBIL or Experian or Equifax or Highmark
For loan amount Rs. 5 lac One CIR with score mandatorily from CIBIL &
& above One CIR without score from Experian or Equifax or Highmark
47
As the Credit Information Companies (CIC) raise monthly consolidated invoices on bank, which are being paid
centrally by Head Office debiting expenditure head , hence branches are required to collect Rs.50/- per CIR
drawn flat from each of the borrowers and credit the same to their income head.
While drawing CIRs, branches must be getting either of the following two reports:-
a) A HIT: A detailed report of loan so far availed by the borrowers at different Financial Institutions,
their present status, status of inquires etc. This comes with or without score as triggered by the
branch/user.
b) A NO HIT: A report with statement RECORD NOT FOUND or similar to this. Following may result into
a No Hit report.
c) - The prospective borrower has never availed any financial assistance from any financial institution so
far.
-He may have availed loan facilities from Bank/FI but the related records are available in database of
CIC as the same had been rejected by the CIC during data uploading due to some data discrepancies.
Such rejection reports are being regularly provided by the CIC to all Banks/FI.
Out of 4 enlisted CICs only CIBIL charges for both HIT and NO HIT reports while the other CICs viz
Experian or Equifax or Highmark, charge only for HIT reports and do not chrge Bnak for the NO HIT
Reports.
Operative Circular: Loan Circular No.85/15
To
The Branch Manager

Himachal Pradesh Gramin bank
________________________
Reg: CIBIL REPORT
Sir,
Kindly arrange to send us CIBIL REPORT of the undernoted person:-
Sr.No. DESCRIPTION BORROWER GUARANTOR

1 Name
2 Father/Husband Name
3 Village/City/Location
4 Post Office
5 District
6 PIN CODE No.
7 Date of Birth
8 Gender (M/F)
9 PAN NO.
10 VOTER ID NO.
11 ADHAR NO.
12 Tel/Mobile No
13 Amount of loan required
48
14 Purpose of loan
T hanking yo u.
Signature
Branch Manage r
REG: MARGIN & SECURITY NORMS:

Sr.No Loan Schemes Security Norms Period/Remarks Margin %
1 Demand Amount of Deposit plus Maturity period remaining at
Loan/Col Limit Interest O/S in FDR/RD A/c. the time of granting loan.
i)Up to 3 years: 7.50%
ii)Above 3 yr up to 4 years 10%
iii)Above 4 yr up to 5 years 12.5%
iv)Above 5 years 20%
Members of staff/honorably
retired /voluntarily
5%
retired/widow of staff:
As applicable
Advance up to 3.00 lac: to public
Above Rs. 3.00 lac
NSC Remaining Maturity Period
i)up to 2 years & 6 months 10%
ii)above 2 yr 6 m to 4 years 20%
iii)Above 4 years 25%
Post Office Time Deposits Remaining Maturity Period
LIC (Surrender Value) Remaining Maturity Period
2 Agriculture A)Production/Investment A)Production/Investment
Advances Credit: Credit:
i)up to Rs. 1.00 lakh i) up to 1.00 lakh Nil
-Hypothecation of crop/ (Both for short & medium
assets created out of bank term)
finance. ii)above Rs.1.00 lakh to Rs.2.00
5%
ii)Above Rs.1.00 lakh lakh.
a) Hypothecation of crop/ iii)Above Rs. 2.00 lakh to Rs.
assets created out of bank 5.00 lakh 10%
finance. iv)Above Rs. 5.00 lakh
b)Charge on land valued at 25%
100% of amount of loan for Under Krishi Card Scheme
other farmers & 75% of loan I)Up to Rs. 2.00 lakh Nil
amount to Small & Marginal ii)Above Rs. 2.00 lac to 5 lakh 10%
farmers. iii)Above Rs.% lak to 10 Lakh 25%
OR In revised KCC Scheme Margin
Alternative security Viz invelit in scheme
charges /lien over liquid
49
securities such as Term
Deposit/NSC/KVP/LIC etc
which may be considered
adequate.
OR
Suitable third party
Guarantee
Sr.No Loan Schemes Security Norms Period/Remarks Margin %

Agriculture B.Under the Scheme of I)Up to Rs. 5.00 lakh Nil
Advances Agri-Clinics and Agri.- ii)Above Rs. 5 lakh 25%
Business Centers
i)up to Rs. 5.00 lakh
-Hypothecation of crop/
assets created out of bank
finance.
ii)Above Rs.5.00 lakh
a) Hypothecation of crop/
assets created out of bank
finance.
b)Charge on land valued at 150%
of amount of loan.
OR
Alternative security Viz charges
/lien over liquid securities such as
Term Deposit/NSC/KVP/LIC etc
which may be considered
adequate.
OR
Suitable third party
Guarantee
Kishan Vahan a)Hypothecation of Vehicle -Maximum Amount of 15%

Yojna b)Charge/Mortgage. of loan 2.50 Lac
Agri.land -Repayment period 7
OR years
c)Pledge of 40% of liquid -Minimum land holding 5
security in the form of acre
FDR/NSC/KVP etc -Recovery of Branch in
AND agriculture is minimum
Two suitable third party 75%
Guarantees having -Minimum Income
sufficient means in the 1.50Lac P.A.
shape of Immovable
Property etc.
Purchase of i)up to Rs.50000/- i)Up to Rs.50000/- Nil
Truck and Hypothecation of vehicle ii)Above Rs. 50000/- to 2 5%
Other Transport ii)Above Rs.50000/- lac 10%
Vehicle under a)Hypothecation of Vehicle iii)Above Rs. 2 lac to 5 lac 15%
Agriculture b)Charge/Mortgage. of iv)Above Rs. 5.00 lac
50
Agri.land
OR
c)Pledge of 40% of liquid
security in the form of
FDR/NSC/KVP etc
AND
Two suitable third party
Guarantees having
sufficient means in the
shape of Immovable
Property etc.
3 MSME No Collateral Security Nil
4 Purchase of i)Loan up to Rs.5.00 Lac i)For New Truck & Buses 10-15% as
Truck and -Hypothecation of vehicle per RBL
Other -No collateral Security Score
Transport ii) Above Rs. 5.00 Lac ii)For old vehicle (not 25%
Vehicle -Hypothecation of vehicle more than 2 years)
-Collateral security equivalent to amount of 25%
loan by way of Mortgage of IP iii)Excavators(JCB make
etc) (15%)*
OR
Pledge of FDRs/NSCIVP/KVPs
OR iv)New Buses/Truck to
Third party guarantee(s) having Ex-servicemen sponsored
Adequate means AND By Directorate
-Advance Cheques a)General Resettlement 15%
OR b)National Permit Holder 20%
No collateral Security or third
party guarantee up to Rs. 50 lac
if covered under CGTSME
5 Conveyance -Hypothecation of vehicle i)For New Vehicle 15%
Loan to Public -Third Party Guarantee/ ii)For old vehicle 30%
collateral security iii)Margin in case of Tie 10%
-Advance Cheque up arrangement
-Third party guarantee/collateral
Security is waived in following
Cases.
i)Permanent employees of
Central/State Govt./PSU/MNC/
Listed Co. at BSE or NSE
ii)For other than salaried class
borrowers where ex-show room
Cost of Car is exceeding Rs. 6 lac
6 Cash Credit CC Limit up to Rs. 5.00 Lac -Last three years financial 25%-40%
Limit i)Hypothecation of Stock Statements
ii)Third party guarantee with net -ITR/STR
means of double the amount of -Proof of ownership I e.
loan/limit Prop./Partnership etc
CC Limit above Rs. 5.00 Lac -Stock Report
i)Hypothecation of Stock -MPBF
ii)Mortgage of Property
51
iii)Third party guarantee with net
means of double the amount of
loan/limit
7 House Loan -Mortgage of Land & House a)Loan up to Rs. 75 lac 20%
Public -Third Party Guarantee having b)Loan above Rs.75 lac 25%
Sufficient means c)Purchase of Land 40%
-Authority letter from DDO
-Advance Cheques
Repair of House 25%
-No collateral Security
-Third party guarantee having net
Means of 150% of loan amount
-Advance Cheque
Rural Housing Scheme
No collateral Security Maximum loan Limit 25% OR
-Third party guarantee having Rs.40000/- Subsidy of
Means Rs.10000/-
-Advance Cheque As margin
8 Loan Against -Mortgage of Residential house/ Term Loan & overdraft 20%
IP Flat or Commercial or Industrial For Personal Need
Property having value of equal -Minimum Rs.1.00 lac
to 150% of loan amount -Maximum Rs.5 lac
-Third party guarantee having For Business Need
Means Minimum Rs.10.lac
-Advance Cheque Maximum Rs.200 Lac
-Income proof either
Salary slip with Form 16
or ITR
-Valuation from
approved valuator
-Maximum 80% of the
realizable value
9 Loan against -Mortgage of any IP to the extent -Term Loan with 20%
Future Lease of 100% of proposed loan Maximum 80% of the
Rentals -Third party guarantee having Future lease rentals.
sufficient means -Minimum lease for 3
-Assignment of leased rentals years
-Advance Cheques
-Third Party Guarantee having
sufficient means.
10 Education -Up to Rs.4.00 lac -Up to Rs. 4.00 lac Nil
Loan No security -Above Rs. 4.00 lac
-Above Rs.4.00 lac to 7.50 lac Studies in India 5%
Collateral security by way of Studies abroad 15%
3rd party guarantee
-Above Rs. 7.50 lac
-Mortgage of land/building
-Third party Guarantee having
sufficient means.
11 House cum -Mortgage of land &Building Housing Loan Portion 20%
52
Home Stay -Third party Guarantee Maximum: 25 years
Loan Including moratorium
period
Home Stay Portion:
Maximum: 10 Years
Including moratorium
period
-Insurance of Building
Detail of Stamp duty to be paid:
Sr. Particulars Amount of stamp duty

1 Term Loan Agreement Rs.50/-
2 Hypothecation agreement Rs. 50/-
3 Hypothecation agreement with power of attorney Rs.100/-
4 Letter of Guarantee Rs.50/-
5 Agreement of Guarantee Rs.100/-
6 Mortgage loan against Immovable Property :o.5% of loan Rs.100/- Min.
/secured amount, rounded off to nearest Rs. 10/- Rs.1000/- Max.
7 Pledge of Govt. Security viz KVP,IVP, NSC etc.: o.5% of loan Rs.100/- Min.
/secured amount, , rounded off to nearest Rs. 10/- Rs.1000/- Max.
8 Acknowledgement of debt( BC letter) Rs.10/-
9 Affidavit from customer Rs.10/-
10 Demand Promissory Pronote Rs.10/-
11 Issuing of Receipt for any amount Rs.1/-
12 Indemnity Bond Rs.100/-
13 Security Bond: o.5% of loan /secured amount, , rounded off Rs.100/- Min.
to nearest Rs. 10/- Rs.1000/- Max.
14 Execution of lease deed including an under Lease of sub- Rs.100/- Min.
lease and any agreement to let or sublet: 5% of the market
value of the leased property, subject to the minimum of
Rs.100/-, rounded off to nearest Rs. 10/-
15 Where the lease property up to 100 years or exceeding 5% of Market value
formula for calculating stamp duty on lease deeds:
5% of Market Value X Period of lease/100
16 In case single document contains two/three powers/ 50+50+100=200/-
instrument than total amount of stamp duty applicable to
all the instruments is to be attached e.g Agreement+
Hypothecation+ Power of Attorney
REG: PRE SANCTION APPRAISAL AND POST- SANCTION FOLLOWUP
Detail guidelines have been issued by Head office on proper pre-sanction appraisal and post sanction
verification of loan accounts for effective credit management time to time through various circulars. The
system of Pre-sanction appraisal and Post sanction verification and follow up require concerted and
consistent efforts to safeguard the interests of the bank. Any laxity in this regard, at any level will lead us to
wrong identification of our borrowers and guarantors and the activity to be financed jeopardizing the interest
of the sanctioning authority and the bank as well. It is therefore imperative on the part of the sanctioning
authority to ensure strict adherence to the guidelines issued in this regards from time to time in order to
avoid the complications arising at later stage.
53
It has been observed that a large number of loan accounts have became irregular and sticky even before one
year from date of sanction either due to lack of pre-sanction/approval or post sanction follow-up. Quick
mortality in loan accounts attracts staff side case against sanctioning authority and put Bank funds at stack.
Laxity being shown in this regard at field level is serious and therefore the necessity has been felt to reiterate
the instructions in this regards for immediate attention and strict compliance of the Incumbents.
1. Pre-Sanction appraisal report should be prepared properly strictly as per Bank norms and on
performa prescribed in the bank for the purpose. In case of some special features of the
case, not covered in the prescribed format, separate points be incorporated to highlight the
same.
2. All the proposed terms and conditions applicable or stipulated in the concerned proposal
should be thoroughly discussed with the intending parties with all implications thereof.
3. Close follow up including proper documentation should be conducted starting from the post-
disbursement verification of the end-use of the bank loan in order to avoid misuse or
diversification of the bank funds.
4. Periodical security verification and confirmation of Balance Confirmation etc should be
ensured strictly as per the time limit/frequency stipulated by H.O. for this purpose.
5. In case of non-receipt of overdue installments in loan account, borrower should be
contacted for the default in 1st installment and curative measure should be taken including
action under Sec.138 of NI Act if applicable.
6. In case of loan account where SARFASI Act is applicable, Incumbents should contact the
defaulting borrowers and it should be emphasised to regularize the account failing which
Bank,s future action play be briefed to him.
7. Timely review and renewal of the account should be ensured after procuring the latest
financial statements/inventories and position of the primary as well as collateral securities
and guarantee.
8. Close monitoring of the loan accounts be strengthened and constant liaison should be
maintained with the borrowers and guarantors.
9. Field visits should be undertaken regularly and frequently as per the instruction of Head
Office.
10. Great importance should be given to obtain the stock reports at the prescribed period,
positively and verification of the reported stock must be done simultaneously. Drawing
Power should be calculated and allowed strictly on the basis of stock held by the party as
per the latest stock report and no relaxation should be permitted in this regard.
11. The loan accounts showing poor instincts should be immediately discussed with the
concerned borrowers and guarantors so as to check the warning signals at the outset.
12. Regular and timely reminders/notice etc. should be issued to irregular borrowers and their
guarantors and they should also be contacted telephonically and personally for regularizing
their loan accounts.
13. Post sanction verification and checking of securities created out of bank loan should be done
within a reasonable time, after disbursement. Certificate to this effect duly signed by the
borrower and the conducting officer should be procured and attached with the loan
documents. Checking official should also record in the certificate that securities are intact
and in proper order as per the terms of sanction.
54
Pre-sanction appraisal should preferably be made by the official other than the sanctioning
authority. However, in case of no 2nd officer posted in the branch the manager himself shall
conduct the pre and post sanction appraisal and verification.
It is pertinent to add here that the points given above are illustrative and
not exhaustive. The Incumbents are advised to take every efforts to maintain the healthy system of
pre-sanction appraisal and post sanction verification of loan accounts so as to reach the stage of
effective credit management in the Bank.
Operative Circular: loan circular No.51/12 dated 05.09.2012
_____________________________________________________________________________________
HIMACHAL PRADESH GRAMIN BANK H.O. MANDI H.P.

LOANING POWERS AT BRANCH & HEAD OFFICE LEVEL W.E.F.30-07-2014
(Amount
in Lac) ANNEXURE-I
Chief
Manager
(posted in
SR.No. NATURE OF FACILITY S M L Branches) RM
AGGREGATE COMMITMENT - PER
1 BORROWER 50 50 70 100 150
(BOTH FUNDED AND NON FUNDED)
55
A) FUND BASED 40 40 60 100 150
B) NON FUND BASED 10 15 30 50 75
2 FUND BASED - SECURED
i) Cash Credit against hypothecation of
Stocks, assets
a) Hypothecation 10 20 25 100 150
ii) Term Loan for project finance, viz. Agri. 20 20 25 100 150
& Allied activity properties, Transport,
SSI, Retail Trade, Small Business,
Professional & Self Employed etc.etc.
3 S.G.S.Y CASES 5 7 7 FP FP
4 S.H.G. 1st Stage 2 3 5 FP FP
2nd Stage 5 7 8 FP FP
5 OVER & ABOVE AGGREGATE
COMMITMENT
a) Advances against Govt. Securities, LIC 10 20 30 FP FP
Policies, Postal Saving Certificates
(NSCs/KVPs, etc.)
b) Advances to members of staff
- Two wheelers FP FP FP FP FP
- Car Loan Nil Nil Nil FP FP
- House Loan Nil Nil Nil FP FP
- Festival Advance 0.3 0.3 0.3 0.3 FP
c) OD Limit to staff Members Nil Nil Nil FP FP
d) Bank Premises Loan Nil Nil Nil FP FP
6 MISCELLANEOUS (FULL POWERS)
a) Advance against Bank's own deposit FP FP FP FP FP
b) Purchase of cheques drawn by Central &
State FP FP FP FP FP
Govt. & drafts of Public Sector Banks
c) Purchase of cheques and drafts if FP FP FP FP FP
proceeds are to be placed in Bank's
fixed deposits at least for minimum
prescribed period of 6 months (no loan
or premature withdrawal to be allowed
till realization of funds)
d) Purchase of drafts issued by our own FP FP FP FP FP

Branches
e) Purchase of Govt. Cheques for Credit to FP FP FP FP FP
accounts of Govt. Deptt./Corpn/Under-
takings
7 KISAN CREDIT CARD 8 10 10 FP FP
8 CREDIT CUM SUBSIDY SCHEME FOR 0.5 0.5 0.7 FP FP
RURAL HOUSING
9 PENSION LOAN TO RETIRED DEFENCE 2 2 2 FP FP
56
PERSONNEL
10 PERSONAL LOAN SCHEME TO GOVT. 3 3 3 FP FP
EMPLOYEES
11 CONSUMER LOAN TO PUBLIC 0.75 0.75 0.75 FP FP
12 CAR LOAN TO PUBLIC 8 10 12 FP FP
13 HOUSING LOAN TO PUBLIC 15 20 25 FP FP
14 EDUCATION LOAN 7.5 10 15 FP FP
15 SCHEME FOR FINANCE AGAINST NIL 5 10 FP FP
MORTGAGE OF PROPERTIES,IPs
16 SCHEME FOR FINANCING TO PROPERTIES NIL 5 10 FP FP
AGAINST FUTURE LEASE RENTAL
PROPERTY
17 DRI SCHEME 0.15 0.15 0.15 FP FP
18 HOME STAY SCHEME 5 5 5 FP FP
19 EDUCATIONAL INSTITUTIONS/HEALTH
CLINIC/ECO TOURISM/ADVENTURE
SPORTS/REAL ESTATE/ HOTEL/
20 20 30 100 150
RESTAURANT FINANCING OF EARTH
MOVERS/INFRASTRUCTURE
DEVELOPMENT ETC.
20 GENERAL LOANING POWERS FOR THE
ACTIVITIES NOT COVERED IN PRIORITY
SECTOR ADVANCES HEREABOVE
i. WORKING CAPITAL 15 20 30 100 150
ii. TERM LOAN 20 20 30 100 150
NON PRIORITY SECTOR ADVANCES 20 20 30 100 150
S= SMALL BRANCH M = MEDIUM BRANCH
L = LARGE BRANCH FP =(FULL POWER)
REVISED SCHEDULE OF SERVICE CHARGES
SERVICES RATES
1.ISSUANCE OF SOLVENCY CERTIFICATE 0.10% of certificate amount with a

minimum of Rs.1000/- and maximum
Rs.25000/-
2.Co-Acceptance of Bills Rs.150+1.00% per quarter or part
thereof for the liability period, per bill.
2. PROCESSING CHARGES ON WORKING CAPITAL :
Particulars Processing Charges Documentation Charges

Up to Rs.25000 Nil Nil
57
Above Rs.25000 & up to Rs.500*/- Nil
Rs.2.lakh.
Above Rs.2 lakh. Rs.225*/- per lac or part there of Rs.500/- per lac or part thereof,
Subject to a maximum .of
Rs.25000/-
For Non-Fund Based Limit 50% of the charges as applicable
to fund based limit
i) No processing charges will be levied on KCC up to Rs. 3.00 lac
ii) In case of advances to Micro and Small Enterprises up to Rs. 5 lakh, no
processing /Documentation charges to be recovered.
iii) No processing fee is to be charged for processing the cases for setting up of Agri
Clinics & Agri Business Centres by Agricultural Graduates.
3. TERM LOAN OTHER THEN RETAIL SEGMMENT
Particulars Upfront Fees Documentation Charges

Above Rs.25000 & up to Rs.500*/- Nil
Rs.2.lac.
Above Rs.2 Lac & up to 1.25%** of the loan amount Rs. 400/- per lakh or part
Rs.50 crore thereof, subject to a
maximum of Rs. 25,000/-
For Scheme where As specified by refinance agency.
refinance is obtained.
*Micro & Small Enterprises up to Rs. 5 lac AND Self Help Groups (SHGs) below
poverty line up to Rs.2 lakh , no upfront fee is to be recovered.
** Micro & Small enterprises above Rs. 5 lakh and up to Rs. 25 lakh, and for
Agriculture Activities above Rs. 2 lakh and up to Rs. 25 Lakh Upfront fee @0.60%+ST
of the loan amount is to be charged.
3(i) MUDRA LOAN:

Above Rs. 50000 0.50% Nil
4. TERM LOAN UNDER RETAIL SEGMMENT

Housing Loans including 0.50% of loan amount up Rs. 1350/-
flexi housing loan to Rs. 300 lacs. Maximum
Rs.20000/-
Earnest Money Deposit Nil Nil
1.00% of loan amount Maximum Nil
Car Loan Rs.6000/-including
documentation charges
OD to Housing Loan Nil Nil
Borrower for personal need
Two Wheeler Loan Rs.275/- Rs.275/-
Loan against Mortgage of 0.90% of the loan amount. Rs. 900/-
58
IP Maximum Rs.45,000/-
Education Loan For Studies in India- NIL For loan up to Rs. 4 lac-
For studies abroad- 1.00%, Rs. 270/-
Min. Rs. 10000 For loan over Rs. 4 lac- Rs.
(refundable) 450/-
Personal Loans 1.80% of loan amount For loan upto Rs. 2 lac- Rs.
270/-
For loan over Rs. 2 lac- Rs.
450/-
Personal loan to Pensioners Nil For loan upto Rs. 2 lac- Rs.
270/-
For loan over Rs. 2 lac- Rs.
450/-
For Defence personnel Nil Nil
5. TERM LOAN OTHERS

Traders, Super Trade, 0.70% of loan amount. Rs. 270/- upto Rs. 2 lac.
Future Lease Rentals, Rs. 450/- over Rs. 2 lac.
Doctors,GraminChikitsak.
6. GUARANTEE COMMISSION
Performance 0.50% per quarter or part thereof (Minimum.Rs.200/- )
Guarantee
Other than 0.75 % per quarter or part thereof (Minimum.Rs.200/- )
performance
guarantee
Guarantees 1. 100% cash margin 25% of normal commission
secured by : 2. 75% cash margin 50% of normal commission
3. 50% cash margin 75% of normal commission
i)For all loans up to one year, processing fee is to be charged.
ii) For loans over one year,
a)upfront fee is to be charged in case loans are sanctioned to meet capital
expenditure and
b) processing fee is to be charged proportionately for the period of sanction
in case loans are sanctioned for working capital requirements.
iii) No processing charges/Upfront fees/ Documentation Charges are to be
levied in case of advances against deposits, Govt. securities, UTI, Mutual
Fund Units, NSCs, KVPs, IVPs and IRDP cases, Staff loan and in case of Self
Help Group Accounts (SHGs), below poverty line.
iv) Further, no processing fee/service charges/ledger folio charges are to be levied

in respect of borrowers who have been issued Kisan Credit Card against the
security of FDR, NSCs, KVPs or other such liquid securities.
v) No processing fee is to be charged for processing the cases of setting up of Agri.

Clinics and Agri. Business Centres by Agricultural Graduates under Central
Sector Scheme.
7. ISSUE OF BALANCE/INTEREST CERTIFICATE/NO DUES CERTIFICATE
For PS Advances : Rs. 50/- per Certificate

For others : Rs.150/- per Certificate
The above charges will also be applicable in respect of working capital limits to traders.
59
RATE OF INTEREST IN ADVANCES w.e.f. 01.07.2015
8. HANDLING CHARGES:
Wherever full waiver of processing fee or upfront fee is permitted, Handling charge
@Rs.15/- per lakh or part thereof ,subject to a maximum of Rs. 1 lakh are to be recovered
From borrower availing limit of Rs. 1 crore & above.
9. SERVICE CHARGES FOR NON FUND BASED FACILITIES ILC CHARGES<

LOAN/DEBT SYNDICATION CHARGES< UNDERWRITING ASSIGNMENTS
11. CIBIL REPORT CHARGES: Rs. 100/- Per Report:
Note: Service tax/Education cess as applicable will be charged over and above the charges
mentioned above .At present Rate of Service Tax is 14% w.e.f 1st June 2015, hence
branches are advised to charges service tax as advised above.
Operative circulars: for detail refer Loan Circular 66/15 dated 15.09.15 , 82/15 dated 23.10.15
Space for amendment:
60
Master Table
Sr. No. HPGB Score Rate of Interest Interest Table Code
1. >80 11.25 MTLA1
2. >7080 11.50 MTLA2
3. >6470 11.75 MTLA3
4. >5864 12.00 MTLA4
5. >5258 12.50 MTLA5
6. >4652 13.00 MTLA6
7. >4046 13.50 MTLA7
INTEREST RATE CODES FOR LOAN AND ADVANCES SCHEMES
CATEGORY OF ADVANCE Without TP With TP SCHEME CODES
Rate Code Rate Code
A AGRICULTURL SECTOR
1 AGRICULTURAL ADVANCE (DIRECT AND INDIRECT)
a PRODUCTION CREDIT (WORKING CAPITAL) CCAKC,STLCP
REGULAR ADVANCES Existing Revised Code Existi Revis Code
ng ed
Up to 50000 12.75 7.00 KCCR1 NA NA NA Kisan Credit Card, Short Term
Advances over Rs. 50,000/ 13.50 7.00 KCCR1 NA NA NA Crop Loans
but up to 3.00 Lakh.
Advances over Rs. 300,000/ 13.75 12.00 KCCR2 NA NA NA
Advances over 20.00 lakh NA Master KCCR3 NA NA NA
Table
Irregular KCC Loans and KCC Above RS. 3.00 Lakh
Up to 50,000/ 13.50 12.00 CCKC1 NA NA NA
Rs. 50,000/ to 3.00 Lakh 13.50 12.00 CCKC1 NA NA NA
Advances over Rs. 300,000/ 13.75 12.00 CCKC2 NA NA NA
Advances over 20.00 lakh Master CCKC3 NA NA NA
Table
b TERM LOAN TLALL,TLALS,TLAOT,TLAOS
Up to 2 Lacs 13.50 12.00 LALT1 14.00 12.50 LPLT1 Dairy, Sheep, Goat, Piggery,
Over Rs 2 Lacs up to 20.00 13.50 12.00 LALT2 14.00 12.50 LPLT2 Pack Animal, Animal Carts,
Lakh Poultry, Fishery all other
Above Rs. 20.00 Lakh As per Allied Agri. Activities, Drought
Master Animals, bullocks, Minor
Table Irrigation, Sericulture,
Mushroom, Bee Keeping,
Land Purchase, Land
Development, Water
Harvesting, Bio Gas, Debt
Swapping, Vermi Compost,
Green House, Poly House,
Ware House Receipts,
Distribution of Farm Inputs
2 DEVELOPMENT OF HORTICULTURE TLAOT
a PRODUCTION CREDIT (WORKING CAPITAL) Horticulture, Floriculture
Regular KCC
i Up to 50000 13.25 7.00 KCCR1 NA NA NA
Ii Above 50000 up to 3 lacs 13.75 7.00 KCCR1 NA NA NA
Advances over Rs. 300,000/ 14.00 12.00 KCCR2
Above 20.00 Lakh NA Master KCCR3 NA NA NA
Table
Irregular KCC Loans and KCC
Above RS. 3.00 Lakh
Up to 50,000/- 13.25 12.00 CCKC1 NA NA NA
61
iii Over 50,000 & up to 3.00 13.75 12.00 CCKC1 NA NA NA
Lakh
Advances over Rs. 300,000/ 14.00 12.00 CCKC2 NA NA NA
Above 20.00 Lakh NA As per CCKC3 NA NA NA
Master
Table
b TERM LOAN
Up to 2 Lacs 13.50 12.00 TLOT6 14.00 12.50 TPOT6
Over 2 Lacs & upto 20.00 13.75 12.00 TLOT7 14.25 12.50 TPOT7
Lakh
Above Rs. 20.00 Lakh NA As per NA NA NA
Master
Table
3 AGRI. CLINIC, AGRI. BUSINESS CENTER TLACB,TLACS,TLDFI
a (WORKING CAPITAL) Distribution of Farm Inputs
i Up to Rs. 50000 13.50 13.00 TLAC1 NA NA
ii Over Rs. 50000 to Rs. 2 Lacs 13.75 13.25 TLAC2 NA NA
iii Over Rs. 2 Lacs to 20.00 Lakh 14.00 13.50 TLAC3 NA NA
Above Rs. 20.00 Lakh As per NA NA NA
Masre
Table
b TERM LOAN
I Up to Rs. 2 Lacs 13.50 13.00 TLAC4 14.00 13.50 TPAC4
ii Over Rs. 2 Lacs to Rs 25 Lacs 13.75 13.25 TLAC5 14.25 13.75 TPAC5
4 TRACTOR LOAN TLTRA, TLTRS
Up to Rs. 2 lacs 13.50 13.00 TLTR1 14.00 13.50 TPTR1 Tractor and matching
implements
Over Rs. 2 lacs 13.75 13.25 TLTR2 14.25 13.75 TPTR2

Rate Code Rate Code
5 FINANCING FARMERS FOR TRUCKS/TRANSPORT VEHICLES TLOTH

Existing Revised Code Existi Revis Code Transport vehicles for
ng ed transportation of agri.
i Up to Rs. 2 Lacs 13.50 12.00 TLOT0 14.00 12.50 TPOT0 Produce
Over Rs. 2 Lacs 13.75 12.00 TLOT9 14.20 12.50 TPOT9
6 KISAN VAHAN YOJNA TLOTH
i Two Wheeler 13.50 12.00 TLOT1 14.00 12.50 TPOT1 Personal Vehicles to
ii Four Wheeler 13.75 12.00 TLOT2 14.25 12.50 TPOT2 agriculture
7 RURAL GODOWN TLRGN, TLRGS
13.50 12.00 TLRG1 14.00 12.50 TPRGN Construction of Rural Godown
8 AGRO BASED PROCESSING
UNITS
i Term Loan 13.50 12.00 TLOT8 14.00 12.50 TLOT8 Rice Sheller units/Cold
II Working Capital 13.50 12.00 CCOT4 NA Na NA Storage Units/Seed Processing
Units/Flour Mills/Oil
Mills/Manufacturing
/processing of
Pulses/Dal/Suji/Besan etc.
9 SELF HELP GROUP TLSHG,TLSFS,CCOTH-(LEDGER
6TH)
i Up to 50000 12.50 12.00 LASH1 13.00 12.50 LPSH1
Ii Above 50000 up to 2 lacs 13.00 12.50 LASH2 13.50 13.00 LPSH2
iii Over 2 Lacs 13.25 12.75 LASH 3 13.75 13.25 LPSH3
SHG Under NRLM( Mandi &
Shimla Districts only)
i UP To 3.00 Lakh 7.00 7.00 NRLM1 NA NA NA
ii Above 3.00 Lakh & irregular 13.25 12.75 LPSH3 NA NA NA
62
Loans
B SSI/SME SECTOR UNDER PMMY(MUDRA)
1. SMALL SCALE INDUSTRY
a) SSI (Manufacturing)
i Up to Rs. 50000 11.25 11.25 TLIS1 11.75 11.75 TPIS1 TLIST, TLISS, CCSSI
ii Above Rs. 50,000 to 10 lacs 12.25 12.25 TLIS 2 12.75 12.75 TPIS2
b) SSI (Service Sector)
Up to Rs. 50000 11.25 11.25 TLSS1 11.75 11.75 TPSS1
Above Rs. 50000 to 20 lacs 12.25 12.25 TLSS 2 12.75 12.75 TPSS2
2. Transport Operator
i Up To 2.00 Lakh 12.25 12.00 TLRSI 12.75 12.00 TPRS1 TLRST,TLRTS
ii Above 2 lac to 10 lacs 12.25 12.00 TLRS2 12.75 12.00 TPRS2
3. TRADING ADVANCE TLRSB,TLRSS
a TERM LOAN
i Up to Rs 2 Lacs 13.50 12.00 TLRS3 14.00 12.00 TPRS3
ii Above 2 lac to 5 lacs 14.00 12.00 TLRS4 14.50 12.00 TPRS4
iii Above 5 lac to 10 lacs 14.00 12.00 TLRS5 14.50 12.00 TPRS5
b WORKING CAPITAL CCOTH- (Ledger 1)

i Up to Rs 2 Lacs 13.50 12.00 COTH1 NA NA NA
Ii Above 2 lac to 5 lacs 14.00 12.00 COTH2 NA NA NA
iii Above 5 lac to 10 lacs 14.00 12.00 COTH3 NA NA NA
4. PROFESSIONALS AND SELF EMPLOYED TLRPS,TLPSS
a OTHER PROFESSIONALS
I Up to Rs. 2 Lacs 13.00 12.00 TLPS1 13.50 12.00 TPPS1
ii Over Rs. 2 Lacs up to 10 lac 13.50 12.00 TLPS2 14.00 12.00 TPPS2
b MEDICAL PRACTITIONERS
Up to Rs. 10 lacs 13.00 12.00 TLPS3 13.50 12.00 TPPS3
SCC(Maximum 4.Limit Rs.550000)
Term Loan 11.25 11.25 TLSC1 11.75 11.75 TPSC1 TLSCC/CCOTH
Working Limit 11.25 11.25 CCSW1 Nil Nil Nil
6. MAHILA CREDIT CARD (Maximum Limit Rs. 1.00 Lac)
Working Limit 11.25 11.25 CCOT7 Nil Nil Nil CCKLY
7. ARTISAN CREDIT CARD (Maximum Limit Rs. 2.00 lac)
Up to Rs. 50000 11.25 11.25 CCOT5 Nil Nil Nil CCOTH
Above Rs. 50000 12.25 12.00 CCOT6 Nil Nil Nil
C OTHER PRIORITY SECTOR
1 EDUCATION LOAN
i Up to 4 lacs 12.50 12.00 TLRE1 13.00 12.50 TPRE1 TLRED
ii Above 4 lacs to 15 lacs 13.00 13.00 TLRE2 13.50 13.50 TPRE2
B NEW HGB PRATIBHA 12.50 12.00 TLPE1 12.50 12.00 TPPE1
SCHEME
2 HOUSING LOAN TO PUBLIC TLPHL
a Floating Rate
i Up to 5 years 10.75 10.00 TLFO1 NA NA NA
ii Above 5 years up to 10 yrs 10.75 10.00 TLFO2 NA NA NA
Iii Above 10 years up to 20 10.75 10.00 TLFO3 NA NA NA
years
3 HOUSING LOAN TO PUBLIC TLPHL
b FIXED RATE TLPHL
i Up to 5 years 10.75 10.50 TLFI1 NA NA NA
ii Above 5 years up to 10 yrs 11.25 10.50 TLFI2 NA NA NA
Iii Above 10 years up to 20 yrs 11.50 10.50 TLFI3 NA NA NA
C CREDIT CUM SUBSIDY FOR RURAL HOUSING TLPHS
Existing Revised Code Existi Revis Code
ng ed
(Under Govt. of India 13.00 12.50 TLPH1 NA NA NA Adjust the interest rate
Scheme) through Account Preferential
63
4 SWAROZGAR CREDIT CARD (Upto to Rs. 50000 only)
I Term Loan 13.50 11.25 TLSC1 14.00 11.75 TPSC1 TLSWC
ii Working Capital 13.50 11.25 CCSW1 NA NA NA CCOTH- (LEDGER 2)
5 MAHILA CREDIT CARD CCKLY
12.50 11.25 CCOT7 NA NA NA
6 ARTISAN CREDIT CARD CCOTH- (LEDGER 4)
i Up to 50000 13.00 11.25 CCOT5 NA NA NA
Ii Above 50000 up to 2 lacs 13.50 12.25 CCOT6 NA NA NA
7 GENERAL CREDIT CARD (upto Rs. 25000 only) CCOTH-(LEDGER-3)
i For Women 13.50 13.00 GCOT1 NA NA NA
ii For others 14.00 13.50 GCOT2 NA NA NA
8 SOLAR LIGHTING/SOLAR WATER HEATING SYSTEM
TLAOT (upto 5 years,
thereafter normal rate)
i Normal Rate where capital 13.50 12.50 TLSL1 NA NA NA TLAOS
subsidy is applicable
D NON PRIORITY SECTOR
1 PERSONAL LOAN TO GOVERNMENT EMPLOYEE TLPCL
i Salary disbursed through 15.25 13.00 TLPC3 NA NA NA Adjust the interest rate
branch through Account
Preferential
ii Others 16.25 15.00 TLPC4 NA NA NA Adjust the interest rate
through Account
Preferential
2 CONSUMER LOAN TO PUBLIC TLPCL
i Salary disbursed through 13.75 13.25 TLPC1 14.25 13.75 TPPC1
branch
ii Others 15.00 14.50 TLPC2 15.50 14.75 TPPC2
3 PERSONAL LOAN TO PENSIONERS DLPPL
Demand Loan & Term Loan
i Up to 25000/- 13.25 13.00 DLPP1 13.75 13.50 DPPP1
Ii Above 25000/- 13.25 13.00 DLPP2 13.75 13.50 DPPP2
Iii Overdraft 13.75 13.50 DPPP2 NA NA NA

4 CONVEYANCE LOAN TO PUBLIC TLPVL
A TWO WHEELERS TO PUBLIC
i Where Salary is Disbursed 13.25 13.00 TLP13 NA NA NA
through branch( Repayable
in less than 3 years)
ii Where Salary is Disbursed 13.25 13.00 TLP14 NA NA NA
through branch( Repayable
in more than 3 years)
iii All other including Business 14.25 14.00 TLP15 NA NA NA
concerns( Repayable in less
than 3 years)
iv All other including Business 14.25 14.00 TLP16 NA NA NA
concerns( Repayable in
more than 3 years)
B CAR LOAN ON RBL SYSTEM
a Floating Rate Of Interest
i IND. WITH MINIMUM RBL 10.50 10.25 TLPV9 NA
SCORE OF 60 AND ABOVE
or where collateral
security is 100 % or above
in the form of IP(
Repayable in 7 Years)
ii Others (Repayable in less 11.25 11.00 TLP10 NA NA NA
than 3 years)
iii (Others 11.75 11.50 TLP11 NJA NA NA
(Repayable more than 3
64
years
Fixed Rate Of Interest( All 10.65 10.40 TLP12 NA NA NA
category repayable up to 7
years
Existing Revised Code Existin Revis Code
g ed
FOR OTHER BORROWERS NOT FALLING IN ABOVE CATEGORY
i Repayable less than 3 years 12.00 11.50 TLPV7 NA
ii Repayable in 3 years and 12.00 11.50 TLPV8 12.50 12.25 TPPV8
above
5 LOAN TO PROPERTY OWNERS AGAINST FUTURE RENTAL TLPLR
14.00 13.50 TLPL1 14.50 14.00 TPPP1
6 ADVANCE AGAINST MORTGAGE OF IMMOVABLE PROPERTY having RBL Score TLPIP
More than 80 11.50 11.25 TLPI7 NA NA NA
70-80 11.75 11.50 TLPI8 NA NA NA
64-70 12.00 11.75 TLPI9 NA NA NA
58-64 12.25 12.00 TLP20 NA NA NA
52-58 12.50 12.25 TLP21 NA NA NA
46-52 12.75 12.50 TLP22 NA NA NA
40-46 13.25 13.00 TLP23 NA NA NA
7 ADVANCE FOR BANK PREMISES TLPHL
13.75 14.00 TLBP1 14.25 14.50 TPBP1
8 CLEAN ADVANCE ODPER
16.50 16.00 ODGSC 17.00 16.50 OPGSC
9 DEMAND
LOAN/OVERDRAFT
a Advance against approved
Government Securities
i Demand Loan against 13.00 13.00 DLGE1 NA NA NA DLGEN
Postal Time
Deposit/KVP/NSC
ii Demand Loan against LIC 13.00 13.00 DLGE2 NA NA NA DLGEN
Policies
iii Over Draft against Postal 13.50 13.50 ODNSC NA NA NA ODGEN
Time Deposit /KVP/NSC/LIC
b Demand Loan, Overdraft
against Banks own Deposit
i To the depositor 1% above Deposit Rate DLGEN, ODGEN
ii To third party 13.50 13.50 13.50 13.25 Choose correct interest rate
10 DRI 4.00 4.00 from dropdown list by
pressing F2
BALANCE CONFIRMATION LETTERS
a) Balance Confirmation(BC) Letters confirming balances be obtained once in a year in all

Standard/Regular loan accounts from the borrowers and guarantors.
b) In accounts other than standard/regular, BC Letters confirming balance be obtained from the
borrowers and guarantors on half yearly basis i.e. as on 31st March and 30th September, every year.
c) Balance Confirmation Letters in loan accounts against security of bank deposits will not be obtained
unless:- i) The debit balance exceeds the value of security and/or; ii) Deposit under pledge matures
after two years and above from the date of advance and/or; iii) Where the depositor has given
mandate for auto renewal of fixed deposit. Balance Confirmation Letters in case of (i), (ii), (iii) above
65
will be obtained once in a year, as applicable to all other loan accounts under standard category, to
have uniformity.
d) Branches should maintain Due Date Register for obtaining BC Letters in loan accounts and enter
these BC Letters in CBS System.
e) All renewal/review of limits/compromise/other proposals/references should essentially include the

dates when BC letters was last obtained. The reviewing/sanctioning authority should ensure that the
limitation is available in the account(s), at least for 24 months.
f) Obtaining of BC Letter as per Banks guidelines in case of all borrowers having aggregate sanctioned
limits of Rs. 10.00 Lakh & above shall be monitored by Regional Offices. Limitation aspect would also
be monitored in Task Force Committee Meetings.
g) Regional Offices shall place before the Regional Level Audit Committee , the statistics on accounts
where Limitation is going to expire in next 12 months. Compliance of Action Points emerged for
Regional Offices would be monitored by Head Office.
Revival of time barred debt:- U/S 25(3) of Indian Contract Act, 1872 it is stipulated that a PROMISE to pay a
debt barred by law of limitation is an agreement which is a contract and therefore is valid thus if a borrower
acknowledges, agrees and promises to pay time barred debt, limitation will be revived and fresh period of
limitation will start from the date of execution of such agreement.
NOTE: While making such an agreement, fresh(Token) advance is also made. This has a practical angle so that
the borrower may not, at a later date, dispute the validity of the said agreement as some consideration
amount is being passed on to him.
Limitation Act
DESCRIPTION YEARS PERIOD TO RUN FROM
1 Money deposited payble on demand 3 Yrs When the demand is made
2 Demand Loan 3 Yrs When the loan is made
3 Term Loan 3 Yrs From the due date of each installment
4 Demand Bill 3 Yrs From the date of bill
5 Dishonoured Usance Bill 3 Yrs From the due date of payment
6 Cash Credit- (Hypothecation) 3 Yrs From the date of document
7 Cash credit- (Pledge) Not Applicable
66
8 By a Mortgagee- 30 Yrs
For Foreclosure When the money secured by the mortgagee becomes

due.
For Possession of immovable property 12 Yrs When the mortgagee becomes entitled to possession.
mortgaged by Bank- Mortgage suit
9 Right of Redemption 30 Yrs From the date of adjustment of loan
10 Execution of Decree 12 Yrs From the date of decree
11 Fixed Deposit 3 Yrs After the date of presentation for payment by the
depositor
12 Fraud 3 Yrs From the date the fraud is detected
Himachal Pradesh Gramin Bank

HEAD OFFICE MANDI.H.P.
PRE SANCTION APPRAISAL REPORT
Credit proposal of Sh./ Smt/_____________________R/O________________

For Rs.____________________For purchase of_________________________
The pre sanction appraisal of the proposal under reference is conducted by the undersigned
on_____________
1.Business performance:
Performance: Last year, in case of existing Next year, in case of existing
units and new units
a) Average monthly sale Rs. Rs.

b) Monthly expenses
Stock/spares Rs. Rs.
Salary of employees Rs. Rs.
Drawing for sustenance Rs. Rs.
Other expenses rent etc. Rs Rs.
Total Expenses Rs. Rs.
c) Monthly surplus (a-b) Rs. Rs.
2. Equipment finance (if required)
a) Details of equipment required( invoices/estimates to be enclosed)
Sr. No. Item Supplier Cost.
67
1.
2.
Total Rs._________
Less : Applicants contribution if any Rs._________
Amount of loan required Rs._________
b) Need for equipment:
3. Working capital requirement:

Minimum Stocking:___________Months purchases___ Rs.________
Less:
Credit available on purchase: Rs._________
Amount contribuated by applicant Rs.________ Rs._______
Limit required from bank. Rs._______
4. Repayment programme, with start up period:
(i) Term Loan :
(ii) Working capital :
5. How is the anticipated turnover considered achievable?

(please mention marketing arrangements)
Keeping in view the information and facts given above I hereby recommend for sanction a Term Loan/limit of
Rs.___________to Sh./Smt.________________
on the following terms and conditions:
1.Purpose:
2. Cost of the project.
3.Margin:-
4.Extent of loan:-
5.Rate of interest:-
6.Security:- (i) Primary:-

(ii) Collateral
7.Disbursement:-
8.Repayment:-
9.Guarantee:- The proposed borrower has offered the following Guarantee.

i.Sh.________________S/o Sh.____________________
R/O_____________________having net means of__________
ii.Sh.________________s/o Sh.____________________
R/O_____________________having net means of__________
10.Insurance:-
11.Other. (about applicant and project)
Place____________Date_____________ Signature (Officer Credit)
68
HEAD OFFICE MANDI H.P
BRANCH OFFICE:
SECURITY VERIFICATION CERTIFICATE
Certified that I ______________________(Designation) visited village____________
P.O._________________Distt.____________________ H.P. on ________________.
During the visit I have verified the securities of Sh. ________________S/O___________
R/O____________________________________________________________________
The present status of security is as under:
Loan Account No:______________Amount of Loan/Limit:___________
Date of sanction:__________________
Purpose of loan:___________________
Date of disbursement of loan:____________________
Detail of security: _______________________
Position of security at the

time of visit of the officer:_______________________
Present status of the project:______________________
69
Date:____________ Signature of Security Verification
Officer/Inspector.
HIMACHAL PRADESH GRAMIN BANKHEAD OFFICE MANDI H.P.

Branch Office_______________________
Quarterly Review Sheet for Cash Credit Limit Sanctioned for Rs. 200000/- and above.
1: General Detail:
i) Name & Address of the firm:
ii) Name of the Prop./Partners:
iii) Permanent address:
iv) Extent of limit sanctioned:
v) Date of Sanction:
Vi) Purpose of CC Hyp. Limit
vii) Whether all terms and conditions are
complied with
2: Position of account as on last working day of the quarter
Sr.No. Particulars 1st qu. 2nd Qu. 3rd Qu. 4th Qu.
a) Value of security (principal)
b) Value of Collateral security
c) Position of security
d) Balance Outstanding
e) Installment due during the Qu.
F) Installment deposited during Qu.
g) Overdue amount
h) Date of inspection of Security/Stock
i) Name of Banks official who made
verification
j) Date of Renewal of CC
k) Date of B.C.Letter obtained
l) Date of Insurance
3. Branch Manager/ Officer comments on the overall performance of the firm:
1st qu.
2nd qu.
3rd qu.
4th qu.
70
Manager/Incharge
HIMACHAL PRADESH GRAMIN BANK HEAD OFFICE MANDI H.P.

Branch Office:___________________
VETTING SHEET FOR TERM LAN/CASH CREDIT HYPOTHECATION LIMIT FOR LOAN ABOVE Rs. 3.00 LAKH
1.GENERAL DETAIL:
i) Name & address of the Borrower/

Firm:
ii) Name of the Individual/
Prop./Partners:
iii) Permanent Address:
iv) Extent of Limit/Loan sanctioned:

v) Date of Sanction:
vi) Purpose of Loan/Limit:
vii) Whether all terms and Conditions are
complied with?
viii) Whether all documents related to
loan/limit have been obtained and
completed in all respect?
ix) Whether legal compliance certificate
obtained?
x) Whether CIBIL Report Obtained?
xi) Whether processing/documentation
charges levied in account?
2.Position of account as on date of vetting:

Sr. No. Particulars Remarks
a) Value of Principal Security:
b) Nature of Collateral Security:
c) Value of Collateral Security:
d) Position of Security:
e) Drawing Power:
f) Balance outstanding:
g) Amount overdue/irregularity:
h) Date of inspection of security/Stock:
i) Date of Insurance:
3.Regional Officer comments on overall status of loan/Limit.
71
REGIONAL
MANAGER
Regional Officer must ensure to get this performa filed with the loan/limit documents:
72
FIELD INVESTIGATION REPORT & VERRICFATION OF IMMOVABLE PROPERTY
Name of applicant (s)
For Property vertification:
Name of the owener(s) of the property:
If the property is under joint ownership/co-ownership, share of each

owner. Are the shares undivided:
Location, Street, Ward No.:
Flat/Plot no.:
Is the property situated in residential/commercial/mixed area/Industrial

area:
Classification of Locality high class/middle class/poor class:
Proximity to civic amenities like schools, hospitals, offices, markets,

cinema halls etc.
Area supported by documentary proof, shape, dimensions and physical
features.
Attach a dimensional site plan alongwith photo of the property.
Furnish details of the building on a separate sheet giving number of floors,

plinth area floor-wise, year & type of construction, finishing (floor wise)
Is it freehold or leasehold land;
If leasehold, the name of Lessor/Lessee, nature of lease, dates of
commencement and termination of lease:
Is there any restrictive covenant in regard to use of land? If so,
details be given:
Does the land fall in an area included in any Town planning scheme
or any statutory body? If so, give particulars.
Is the building owner occupied/tenanted/both?
If partly owner-occupied, specify portion and extent of area under owner

occupation.
Name of tenants/lessees
Portions in their occupation
Date since when they have been occupying the premises
Rent being paid.
Is there any dispute between landlord & tenant?
Market value of property
Realisable value of property
Existing state of surroundings
Did you meet any estate agent/property dealer etc. at the area where the
property to be financed is located? If yes, details of discussion about the
property being verified be mentioned here.
Comments
Date:
Signature
(Recommending Officer)
REG: - EMPANELMENT OF VALUERS FOR VALUATION OF SECURED ASSETS.
73
This is in continuation to our loan circular no. 85/2012 dated 28.12.2012 wherein the
Incumbent Incharge of Branches have been advised to utilize the services of approved
valuers of the Sponsor Bank i.e. Punjab National Bank for valuation of properties
mortgaged/ charged or to be mortgaged/ charged to the Bank to secure the Bank Loan or
otherwise. References have been received from the branches in regard to the valuers
empanelled in the list of Punjab National Bank.
In this regard, we are providing hereunder the list of approved valuers, Circle Office-wise of
Punjab National Bank, for ready reference of Branches. This is the latest list of approved
valuers of Punjab National Bank. It is reiterated here that the Board of Directors of our
Bank has permitted only to utilize the services of approved valuers of Sponsor Bank for
Valuation of Immovable Property/ Plant and Machinery etc. The valuers being
recommended by the branches other than the approved valuers of the Punjab National
Bank cannot be considered for approval as valuer in our Bank. The other guidelines given
on the matter in the Loan Circular No.74/2006 dated 31.08.2006, 93/2006 dated
06.12.2006, 06/2011 dated 17.02.2011 and 55/2011 dated 21.11.2011 shall remain
unchanged.
h) LIST OF VALUERS APPROVED BY PUNJAB NATIONAL BANK
PNB CIRCLE OFFICE, DHARAMSHALA
Sr. NAME/ADDRESS/CONTACT EDUCATIONAL REGISTRATION NO. OF CHIEF

No NO. OF THE VALUER QUALIFICATION COMMISSIONER OF INCOME TAX
1. Rominder Kumar, City B.E. Civil CCIT/ASR/HT/34AP/05-06/1381
Planner & Associates, date0d 12.08.2005.
Dalhousie House Road,
Pathankot.
Tel.0186-2231334,
9357405100
2. Shri Ajay Kumar Sharma Bachelor degree CCIT/HP/valuer/2008/09/15 dated
Village PO Lohna, in Architecture 09.06.2009.
Palampur.
Tel.01894-230718.
3 Er. Ved Parkash Saini B. Tech CCIT/ASR/ITO(T)/VALUER/2010/11/167
Engineers Valuers & Graduateship dated 19.01.2011.
Associates, Vishals Examination in
Paradise, Frontier Colony Valuation of
Street A Dhangu Road Immovable
Pathankot (Pb) properties.
Tel. 0186-2222615,
98151-48818.
PNB CIRCLE OFFICE, SHIMLA
Sr. No NAME & ADDRESS TELEPHONE NO.

1 Sh. Rajeev Verma, Rajeev Verma & Associates 2658538,
(Chandigarh), Lakkar Bazar, Shimla. 98170-22330
2 Sh. Manoj Malhotra, Murray Field Estate, Nav Bahar 2842042 & 2841390,
Shimla. 94180-41390
3 Sh. Rajinder Makkad,16, Misty Heights, Forest Hill 0177-2624242,
Road, Shimla-171002. 98160-22600
4 Lt. Col. S.R. Bakshi, 2628/1 Sector 47-C, Solan: 229021
Chandigarh. (Also base at Solan). Chandigarh : 2630998,
74
94171-79006
5 Er. Rajesh Bhardwaj, Bhardwaj House, Near 01702-222585,
Chowgan, Nahan -171002 94184-35610.
6 Er. Satish Kumar Sharma, Satya Home Plan & 01704-223042,
Consultancy, 21-MC Complex Near Vishwakarma 94180-73701.
Mandir, Paonta Sahib HP.
7 Sh. Ajay Kumar Gupta, Gupta Kutir, Ghanahatti 98160-45450.
Shimla-171011.
8 Sh. Sanjay Kumar Gupta, M/S Nayab Associates, 01704-225785, 224786,
8(8/2) Near Vishwakarma Chowk, Nahan Road, 94180-63689, 94184-72945.
Paonta Sahib.
9 Sh. Phunchong Angrup, Kwality House, Flat no. 4,
Vikas Nagar, Shimla-171009.
10 Sh. Satish Chander Chawla, H.No.36, Sector-21, 0172-2578555, 2565646,
Panchkula-134112. 098140-82550.
11 Er. O.P. Khosla, H.No.674, Sector-8, Panchkula- 0172-2572391, 2576215,
134109. 098156-57239.
PNB CIRCLE OFFICE, MANDI
Sr. No NAME/ADDRESS OF THE VALUER EDUCATIONAL PHONE NO.

QUALIFICATION
1 P. Angroop Kwality House, Flat No. 4, B.Sc. Engg (Civil) 94180-21185
Vikas Nagar Shimla 171009.
Angroop Lodge, Village Chichoga,
PO Manali HP-175131.
2 P.K. Malhotra, SCO No. 8, SBI B.E. 94180-46480
Building, Gandhi Chowk Mandi-
175001.
3 P.C. Gupta, Swami Bhawan Chipnoo, B.E.
Mandi HP- 175001.
4 Bipan Singh, Atri Niwas, PO Govt. B. Tech (Civil) 94180-82092
Degree College Anoo, Hamirpur HP-
177005.
PNB CIRCLE OFFICE, HAMIRPUR
Sr. No NAME/ADDRESS/CONTACT NO. OF THE VALUER EDUCATIONAL

QUALIFICATION
1 Bipin Singh, Anu Hamirpur. Tel No.. 98140-82092 B. Tech. Civil
2 Rajesh Banyal, Village Mehre, Distt. Hamirpur. Tel B. Tech. Civil
No..92188-39940
OPEARTAIVE CIRCULAR: LOAN CIRCULAR NO. 03/2013 dated 09.01.13
75
Manager (SCHEDULE-I)
BO: ______________________
Date_________
LEGAL COMPLIANCE CERTIFICATE
Name of the account: _____________________________________________
1. Borrowing Powers Companies/Corporate Bodies/Firms/others
Specify document
Which gives power ___________________________________________
2. Authority to execute Documents
Details of Resolution/Power of Attorney etc. _______________________________
3(a) Loans/Security Documents obtained : Standard/Drafted by Counsel
Details _______________________________________________________
_______________________________________________________
_______________________________________________________
(b) Certificate of counsel is obtained: Certificate Dated___________ from Approved Counsel Shri
__________________________
4. Details of Mortgages created (property wise) Date of mortgage: ______________
Property: _________________________________________________
(a) Title Investigation Done by Shri _______________________
(b) Non Encumbrance is obtained from _________ Office
Search Report by _____________________________
(c) Valuation of Property : Report dated___________done by _______________
(d) Personal physical verification of the property :
Report dt______________ Done by ________________
5. Particulars of charge/Modification of Charge
Forms have been filed after verification
Forms have been filed in time
Certificates have been obtained.
MANAGER/OFFICER INCUMBENT INCHARGE
BO: ______________________
Date_________
Specify document
Details _______________________________________________________
76
_______________________________________________________
_______________________________________________________
__________________________
Property: _________________________________________________
Search Report by _____________________________
Report dt______________ Done by ________________
BO: ______________________
Date_________
Specify document
Details _______________________________________________________
_______________________________________________________
_______________________________________________________
77
__________________________
Property: _________________________________________________
Search Report by _____________________________
Report dt______________ Done by ________________

_____________________________________________________________________________________
(SCHEDULE-II)
Date: ___________
Amount of loan ________________________ Date of Disb. ______________
Purpose of loan_____________________ Sanctioning Authority________
Details of Documents yet to be obtained.
Details of Reports/Certificates yet to be obtained.
Details of Securities yet to be created.
Details of procedures/aspects yet to be complied with.

____________________________________________________________________________________
Appendix-III
BO: ______________________

Amount of loan ________________________ Date of disb. ____________
Account No ----------------------------------Date of Sanction
Purpose of loan_____________________ Sanctioning Authority________
It is certified that save and except items mentioned in Schedule-II (Annexed).
a) The Borrower has requisite borrowing powers.

78
b) The Borrower has requisite powers for creation of securities.
c) The loaning and security documents have been duly executed and all legal
formalities have been observed/complied with.
d) All procedures as prescribed under Book of Instructions/Circulars of the Bank and

as per legal requirement have been obtained and followed.
e) Particulars of the charge/modification of charge have been duly filed with the ROC
in time as detailed in the Schedule-I.
Encl.: Schedule I
Schedule II
MANAGER/OFFICER (LOAN) INCUMBENT INCHARGE
APPENDIX -A
PROFORMA FOR VALUATION REPORTIN RESPECT OF IMMOVABLE PROPERTY

Name of Registered Valuer: Registration No.:
(With State Commissioner of Income Tax)
1. Date of visit of the site :
2. Date of making valuation :
3. Name of the owner(s) of the property :
4. Whether necessary enquiries have been made from:
the concerned locality with regard to the
ownership of the property.
m) If the property is under joint ownership/
co-ownership, share of each such :
owner. Are the shares undivided?
b) Brief description of the property
- Location, street, ward No. :
- Flat/Plot No.
- Is the IP bears the same description/details :
as mentioned in the documents/title deeds
- Is the property situated in residential/ :
Commercial /mixed area/Industrial area
- Is the property situated in an unauthorised/ :
authorised colony.
79
- Classification of locality high class/
middle class/poor class :
- Is the IP in question is under encroachment :
c) Proximity to civic amenities like schools,
hospitals, offices, markets, cinema halls, :
etc.
i) Area supported by documentary proof,
shape, dimensions and physical features :
ii) Attach a dimensional site plan & elevations :
of all structure standing on the land alongwith
photograph of the built up property.
iii) Furnish details of the building on a
separate sheet giving number of floors, :
plinth area floor-wise, Year & type of
construction, finishing (floor-wise).
iv) Is the construction/built up property is as :
as per the plan approved by the competent
authority.
Is it freehold or leasehold land? :
n) If leasehold, the name of Lessor/Lessee,
nature of lease, dates of commencement
and termination of lease :
o) Is there any restrictive covenant in
regard to use of land? If so, details be given :
p) Does the land fall in an area included in any
Town planning scheme or any development :
plan of Govt. or any statutory body? If so,
give particulars.
5. Is the property notified for acquisition by Govt. :

or any statutory body.
6. a) Is the building owner occupied/tenanted/
both? :
b) If partly owner-occupied, specify portion and

extent of area under owner occupation :
7. a) Names of tenants/lessees/licensees, etc.
b) Portions in their occupations :
c) Monthly or annual rent/compensation/

license fee, etc. paid by each. :
8. Is any dispute between landlord and tenant
80
regarding rent pending in a court of law :
9. The valuer should give in detail his
approach to valuation of the property and :
indicate how the value has been arrived at,
supported by necessary calculations.
Market Value of the property :
Realisable Value of the property :
NOTE : If the space provided is not sufficient, details may be attached on a

separate sheet.
DECLARATION :
I, hereby, declare that :
1. The information furnished above is true and correct to the best of my
knowledge and belief;
2. I have no direct or indirect interest in the property being valued;
3. I have personally inspected the property on ________
4. My registration with State Chief Commissioner of Income Tax is valid
as on date.
Date ______________ ______________________________________
Place _____________ Signature and seal of Registered Valuer

On the Banks Panel
FULL ADDRESS: ____________________________
APPENDIX-B
PROFORMA FOR RECORDING THE VALUE OF PROPERTY

ASSESSED BY INCUMBENT INCHARGE
2. Name of the owner(s) of the property :
3. If the property is under joint ownership/

co-ownership, share of each such :
owner. Are the shares undivided?
4. Brief description of the property i.e. location,

street, ward No., Flat/Plot No., dimensions :
81
- Is the property situated in residential/
commercial/mixed area/Industrial area :
- Whether the construction plan is approved
by Municipal Authority/Corporation, etc. :
5. Is it freehold or leasehold land? :
6. a) Is the building owner occupied/tenanted/

both? :
b) If partly owner-occupied, specify portion and

extent of area under owner occupation :
c) Rental value of the property :
7. Is any dispute of landlord with tenant and/or

any statutory body in regard to property? :
8. Specify the method(s) adopted for assessing :

the value of the property (i.e. personally
inspecting the property, scrutinising the
valuation certificate issued by local authority
for taxation purposes, making enquiries
through brokers, neighbours, net yield method, etc.)
Value of Land (Area x Rate) + Construction Cost
Realisable Value of the property :
9. Realisable value of the property as
per valuation report of the approved valuer :
DATE: SIGNATURE & NAME OF PLACE:

THE INCUMBENT INCHARGE
82
APPENDIX C
PROFORMA FOR VALUATION REPORTIN RESPECT OF PLANT & MACHINERY

Name of Registered Valuer: Registration No.:
(With State Commissioner of Income Tax)
2. Name of the owner(s) of the plant & machinery :
3. Brief description of the plant & machinery

(Separate for each major P&M)
- Name of the manufacturing company :

- Year of making :
- Date of purchase
- Name of the Vendor/Supplier :
4. The valuer should give in detail his
approach to valuation of the plant & machinery :
and indicate how the value has been arrived at,
supported by necessary calculations including
giving effect to technological attrition.
Realisable Value at distress sale of the plant :

& machinery
NOTE : Fair valuation may be determined on the basis of condition, utility, book value,
demand, etc. of the plant & machinery.
If the space provided is not sufficient, details may be attached on a separate

sheet.
DECLARATION :
I, hereby, declare that :
a) The information furnished above is true and correct to the best of my knowledge
and belief;
b) I have no direct or indirect interest in the plant & machinery being valued;
c) I have personally inspected the plant & machinery on ________
d) My registration with State Chief Commissioner of Income Tax is valid as on date.
Date ______________ ______________________________________
Place _____________ Signature and seal of Registered Valuer

On the Banks Panel
FULL ADDRESS: ____________________________
DRAFT LETTER OF UNDERTAKING
To
83
The Manager
Himachal Pardesh Gramin Bank
___________________________
Dear Sir,
REG: Term Loan Account of Sh.___________________.
Sh._____________________my/our father has raised loan of Rs._________________ from you against the
hypothecation of ____________________.
He has died leaving behind the following heirs.
_____________________________
_____________________________
In consideration of your forebearance to recall the loan and giving us time to pay at my /our request, I/We
acknowledge and agree to pay the sum of Rs._____________(Rupees________________________
_______________________________besides further interest from_____________to you in terms of loan

documents dated _________________executed by my/our late father Sh____________________.
I/We confirm that the following securities are hypothecated with the bank and the same are in
my/our possession.
___________________________________________________________________
(mention the securities held)
A fresh guarantee of Sh._____________________has also been furnished to you on my/our behalf.
Yours faithfully,
Date:-_______________ Address_____________________
Place:_______________ _____________________________
_______________________________
REG: Consolidated Guidelines of Tax Deducted at Source (TDS) and deposit thereof
1. Introduction
The Income Tax Act, 1961(the Act) imposes the responsibility for deduction of tax at source at specified rates from
certain payments including salary. The Act also imposes certain responsibilities on the deductor in relation to deposit
of the tax deducted with the Central Government, submission of the returns of the tax deducted / deposited and
issuance of the TDS certificates within the stipulated time period.
Comprehensive Guidelines are attached as per Annexure-I, however, important provisions are given below:
84
2. Threshold Limits and Rates of TDS
2.1 A person is required to deduct the tax at prescribed rates while making certain payment(s) or crediting the
same to the account of payee, whichever is earlier. However, no deduction of tax is required to be made, if the
payments do not exceed prescribed threshold limits.
2.2 PAN not furnished by Deductee
Section 206AA of Income Tax Act, 1961 provides that any person entitled to receive any income or amount on which
tax is deductible shall furnish valid PAN, failing which tax shall be deducted at higher of the following rates :
i.TDS rate as prescribed in the relevant section; or
ii.At the rate or rates in force as per Finance Act; or
At the rate of 20%
2.3 PAN furnished by Deductee
All Branches/Offices are required to deduct TDS where PAN is furnished as per table given below:-
S.No Nature of Payment TDS Rates Threshold Relevant Para
(Exemption) limit of No.
payment (Rs.)
A Salary Average -- Annexure-I,
Rate Para 2
B Interest other than interest on securities 10 % 10,000/- Annexure-I,
(Sec 194A)to resident i.e. Interest paid on Per year Para 3
Term Deposits
C Payment to Resident contractors/subcontractors 30,000/- (For a Annexure-I,
(Sec 194C) single Para 4
(i) Payment /credit to an individual or a transaction)
HUF 1% 75,000/(For
(ii) Payment /credit to any person other aggregate of
than an individual or HUF transactions
2% during FY)
D Commission (not being insurance 10 % 5,000/- Annexure-I,
commission referred in section 194D of Income Per FY Para 5
tax Act 1961) or Brokerage to a Resident (Sec
194H)
E Rent (Sec 194I) to a resident 1,80,000/- Annexure-I,
(i) Rent of Plant, machinery or equipment Per FY Para 6
(ii) Rent of land, building or land appurtenant 2%
to building or furniture or fitting
10 %
F Fees for professional or technical services or 10 % 30,000/- Annexure-I,
Royalty to a resident (Sec 194J) Per year Para 7
G Any remuneration / consideration / fee (other 10.00 NIL
than salary) to a director (Sec 194J)
3. Deposit of TDS, Filing of Quarterly Return and Issuance of TDS certificate
3.1 Deposit of TDS

Time limits for deposition of TDS are as under:
Where tax is deducted from April to February: Tax should be deposited within 7 days from the end of the month in
which tax is deducted.
Where tax is deducted in the month of March: Tax should be deposited by 30th April of immediately succeeding
FY.
3.2 Filing of Quarterly Returns
3.2.1 Due Dates
85
In respect of Tax Deducted at Source it is mandatory to file Quarterly TDS Return in electronic form as under:
Head Form No. Time Limit
Salary (Section 192) 24Q Within 15 days from the end of
Interest on term deposits [i.e. Interest other than interest on 26Q quarter i.e. 15th July, 15th Oct, 15th
securities] (Sec. 194A)/ Payment to contractors Jan. (45 days in the case of the last
/subcontractors (Sec.194C)/ Commission or quarter i.e. 15th May of the FY
Brokerage (Sec.194H)/ Rent (Sec 194-I)/ Fees for immediately following the FY in
professional or technical services (Sec 194J) which the tax was deducted).
3.2.2 Form 27A

a. With effect from 19 February 2013, Form No.27A can only be furnished in electronic form by deductor along
with the e-TDS Return (earlier only the paper form was prescribed).
b. Form 27A is a summary of e-TDS Returns which contains control totals of amount paid and Income Tax
deducted at source. Control totals of amount paid and Income Tax deducted at source mentioned in Form No.27A
should match with the corresponding control totals in e-TDS Return.
c. A separate Form No. 27A is to be furnished for each e-TDS Return i.e. one each for Form Nos.24Q and 26Q.
3.3 Issuance of TDS Certificates
3.3.1 Due Date

In respect of Tax Deducted at Source it is mandatory to issue TDS certificates as under:
Head Form Time Limit
No.
Salary (Sec.192) 16 By 31ST day of May of financial year immediately
following the financial year in which the tax was
deducted.
Interest on term deposits [i.e. 16A Within 15 days from the due date for furnishing the
Interest other than interest on quarterly statement of TDS.
securities] (Sec. 194A)/ Payment to
contractors /sub-contractors
(Sec.194C)/ Commission or
Brokerage (Sec.194H)/ Rent (Sec
194-I)/ Fees for professional or
technical services (Sec 194J)
Any remuneration / consideration / fee
(other than salary) to a director (Sec 194J)
4. Penalties Imposable
We would like to emphasize that it is the personal responsibility of Incumbent Incharge to deduct tax
correctly and pay the same to the Central Government and submit the periodical returns within the time
prescribed under the Income Tax Act.
4.1 Consequences of Failure to Deduct and Pay Tax at source [Sec 201]
It may be noted that, if Incumbent Incharge of a branch does not deduct the whole or any part of the tax or after
deducting fails to remit the tax within stipulated time as required by or under this Act, he or it shall, without prejudice
to any other consequences which he or it may incur, be deemed to be an assessee in default in respect of the tax
and shall be liable to pay simple interest
(i) at one percent, for every month or part of a month on the amount of such tax from the date on which such tax
was deductible to the date on which such tax is deducted; and
86
(ii) at one and one-half per cent, for every month or part of a month on the amount of such tax from the date on
which such tax was deducted to the date on which such tax is actually paid, and such interest shall be paid before
furnishing the statement in accordance with the provisions of sub-section (3) of section 200.
Note: With effect from 01.07.2012, when interest is charged under section 201(1A) on the amount specified in the
intimation issued under section 200A(1), then no interest shall be charged for the same amount for the same period
under section 220(2).
However, with effect from 01.07.2012, the payer (i.e. branches/ offices) who fails to deduct the TDS on the payment
made to resident recipient shall not be deemed to be as assessee in default in respect of such TDS, if the following
conditions are satisfied:
(i) the resident recipient has included such income in the return submitted under section 139 and recipient has
paid the tax on such income, and
(ii) the payer submits a certificate to this effect from a Chartered Accountant.
In such cases, interest shall be payable @1% per month from the date on which TDS is deductible to the date of
furnishing a return of income by the resident recipient. Consequent to above, tax and also penalty under section 221
cannot be recovered from the payer.
Form for furnishing certificate of Chartered Accountant (First proviso to Section 206C (6A))
The certificate from a CA has to be furnished in Form 27BA. This form is available at
http://law.incometaxindia.gov.in/DIT/Notifications.aspx.
As per section 201(3), No order shall be made deeming a person to be an assessee in default for failure to deduct
the whole or any part of the tax from a person resident in India, at any time after the expiry of :
(i) two years from the end of the financial year in which the statement is filed in a case where the statement
referred to in section 200 has been filed
(ii) six years from the end of the financial year in which payment is made or credit is given, in any other case.
Provided that such order for a financial year commencing on or before the 1 st day of April, 2007 may be passed at
any time on or before the 31st day of March, 2011.
4.2 Fee for default in furnishing quarterly TDS returns [section 234E]
If the branches/ offices fails to submit quarterly TDS / TCS returns within prescribed time, they shall be liable to pay,
by way of fee, a sum of 200/- per day during which the failure continues. This fee will be in addition to other
consequences of the said default. However, the fee shall not exceed the amount tax deductible / collectible. After July
1, 2012, it will not be possible to submit quarterly TDS /TCS returns with the delay without payment of said fee.
4.3 Penalty for failure to deduct tax at source [Section 271C]

If any person fails to deduct the whole or any part of the tax as required by or under the provisions of Chapter XVII-B
(Deduction at Source), then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax
which such person failed to deduct or pay. Any penalty imposable under section 271C shall be imposed by the Joint
Commissioner.
4.4 Penalty for failure to submit / furnishing incorrect information in quarterly TDS return [Section 271H]
In respect of TDS / TCS returns to be submitted on or after July 1, 2012, adeductor has to pay minimum penalty of
Rs.10,000/- and maximum of Rs.1,00,000/- in addition to fee payable under section 234E. This penalty will be
applicable in the following cases:
(i) If a person fails to submit quarterly TDS /TCS returns on or before due date.
(ii) If a person furnishes incorrect information in quarterly TDS/TCS returns.
However, no penalty shall be levied for delay in furnishing of quarterly TDS/ TCS returns, if such return is submitted
within one year of the due date after payment of tax deducted / collected alongwith applicable interest and fee. This
relaxation is not available in the case of incorrect furnishing of quarterly TDS / TCS returns.
4.5 Penalty u/s 272BB for failure to comply with the provisions of section 203A in respect of quoting of tax
deduction / collection account number
i). If a person fails to comply with the provisions of section 203A, he shall, on an order passed by the Assessing
Officer, pay, by way of penalty, a sum of Rs.10,000/-.
87
ii). If a person who is required to quote his tax deduction / collection account number or, as the case may be, tax
deduction account number in the challans or certificates or statements or other documents referred to in section
203A (2) quotes a number which is false, and which he either knows or believes to be false or does not believe to be
true, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of Rs.10,000/-.
4.6 Penalty u/s 272A in respect of failure to issue certificate

If any person fails to furnish certificate of tax deducted at source, under section 203, he shall be liable for penalty
under section 272A. Such penalty shall be Rs.100 for every day which may extend to Rs. 200 per day during which
the failure continues. However, the amount of penalty for such failure shall not exceed the amount of tax deductible.
4.7 Penalty not to be imposed in certain cases [section 273B]

No penalty shall be imposable on the assessee for any failure if he proves that there was a reasonable cause for the
said failure.
4.8 Power to reduce / waive penalty in certain cases [section 273A]

Commissioner of Income Tax has power to reduce / waive any penalty under section 273A(4). However, where
amount of any penalty or where such application relates to more than one penalty, the aggregate amount of such
penalties exceeds Rs.1,00,000/-, no order reducing / waiving the amount shall be made by the Commissioner of
Income Tax except with the prior approval of the Chief Commissioner / Director General of Income Tax, as the case
may be.
*****************************
POLICY ON COMPROMISE/OTS/NEGOTIATED SETTLEMENT
1. Eligibility Criteria:
All Borrowal/Loan accounts identified as NPA in terms of extant RBI guidelines shall be eligible for
considering for compromise/negotiated settlement/one time settlement, under which bank endeavors
to recover maximum amount in a minimum time with minimum expenses.
2. Calculation of Recoverable dues:

Recoverable Dues shall be calculated w.e.f. the date of NPA on the Book outstanding as existing on
the date of NPA (inclusive of SI/DI reversed subsequently) duly adjusted for recoveries/further debits
in the account, ignoring the interest, if any credited/debited in the account after the date of NPA, on
simple basis on daily reducing balance at the base rate of Sponsor Bank i.e. Punjab National Bank
which is presently 10.25% p.a. (simple) or contractual rate of interest, whichever is lower on the date
of consideration of the proposal.
However, for NPAs under Direct Agriculture Advances with balance outstanding upto Rs. 10 lacs
(including KCC but excluding Tractor Loans) recoverable dues shall be calculated with interest @
6% simple from the date of classification of the account as NPA.
3. Worksheet for calculation of Recoverable Dues:
Particulars Amt.
(i) Balance oustanding as on {Date of NPA (excluding SI/DI of Rs. )}
(ii) (+) Plus Charges debited to the account, if any after NPA date
(iii) (+) Plus Interest debited to the account and taken to income, if any after
NPA date
(iv) (-) Less Recoveries received after NPA date irrespective of whether
credited to income or to the account.
(v) (=) Balance outstanding in the Books (as on ) last quarter
Equivalent to
(vi) (+) Plus SI/DI reversed/credited back to the account
88
(vii) (+) Plus Legal & other charges recoverable but not debited to the account.
(viii) (=) Base Amount (v+vi+vii)
Equivalent to
(ix) (+) Plus Simple interest @ 6% per annum or 10.25%per annum as the
case may be, from the date of NPA to (last quarter) on daily
reducing balance net of interest already debited in the account {(to
be specified) (after ignoring debits on account of interest)} on the
base amount as per (viii) above.
(x) (=) Recoverable Dues as on (last quarter)
Equivalent to (viii+ix)
3.1 Recoverable dues shall be calculated as at the close of the quarter preceding the date of preparation
of the proposal at branch and shall include legal/other expenses also.
3.2 Recoverable dues being only a Notional concept and purely an internal exercise, the calculations shall
be kept strictly confidential and under no circumstances shall be made known to the borrower.
3.3 Recoverable dues shall be the guiding factor for arriving at the sacrifice involved in the OTS/Write off/
Waiver of legal action and to decide the authority competent to sanction waiver.
4. Net Present Realizable Value of Securities:

Present Market Value of the charged securities net of cost of realization discounted appropriately for
the attendant factors affecting its reliability shall be called Net Present Realizable Value of Securities. It
may kindly be noted that Realizable Value and/or Distress Value as calculated by the Valuers in their
Reports cannot be considered for arriving at Net Present Realizable Value of the securities
89
Under Direct Agriculture Advances upto Rs. 10 lac, the realizable value of primary/collateral security will
exclude the agricultural land offered as security. However, security available other than agricultural land shall
be taken into consideration for arriving at the NPRV as hitherto fore.
5. Minimum Indicative OTS amount: Minimum indicative OTS amount will be arrived at as under:
Situation Minimum Indicative OTS Amount

1. Where NPRV > Recoverable Dues Recoverable Dues
2. Where NPRV < Recoverable Dues but more NPRV
than Book Outstanding
3. Where NPRV < less than Book Outstanding NPRV
4. Where NPRV is Zero Whatever maximum can be recovered
The basis for negotiation shall always be Memoranda Dues and should aim at
recovering maximum share of the same.
However, Minimum Indicative OTS Amount in case of Direct Agricultural Advances up to Rs. 10 lacs
will be as under where NPRV is less than Book Outstanding:
Sub-Standard NPAs : Minimum 50% of Book outstanding
Doubtful NPAs : Minimum 40% of Book outstanding
However, it is to be understood clearly that the above formulae is just to arrive at an indicative OTS
amount only. Due cognizance of other attachable assets of the borrowers/guarantors, apart from the
primary/collateral securities, should also be taken during negotiation/approval of OTS and endeavor
should be maximize the recoveries keeping in view the memoranda dues.
6. DOWN PAYMENT/UPFRONT PAYMENT:

OTS offer up to Rs.10 lac : Upfront 20%
OTS offer >Rs.10 lac to Rs.50 lac : Upfront 15%
OTS offer >Rs.50 lac : Upfront 10%
The upfront amount may be kept in Sundry Deposit General Account with a mandate to appropriate
the proceeds towards adjustment of the dues in the event of acceptance of OTS proposal.
Where due to genuine reasons, borrower is not in a position to make upfront payment; the
competent authority may consider the sanction of OTS with lower/ no upfront on the merits of the case
with proper justification.
7. PAYMENT TERMS OF OTS AMOUNT:

As the name indicates One Time Settlement, obviously acceptance of negotiated amount as one
time down payment is preferable way of settlement compared to payment in installments.
Cases where the OTS amount is to be paid beyond a period of 3 months from the date of conveying
approval, and/ or payment in installments, future interest on the settlement amount to be charged at
least @ 6-10% on simple basis on reducing balance from the date of conveying approval in writing to
the borrower by the branch.
However, the cases where OTS amount is payable/or is paid within three months from the date of
settlement borrowers be allowed to pay OTS amount without any interest.
Authority in the rank of GM and above may consider sanction of OTS at lower rate/without interest as
per merits of the individuals case within his delegated power. However reason for the same shall be
recorded specifically.
8. FAILURE OF OTS:
In case of obligants failure to pay the OTS amount as per schedule of the OTS should be
declared as failed. The failure should be notified to the party maximum within one month after giving
due notice. Regal recourse be taken immediately for recovery of banks dues.
Note : This is only for ready reference of Field Functionaries. Detailed guidelines issued to
all offices vide Loan Circular NO. 25/2014 dated 29/05/2014 must be complied with.
90
HEAD OFFICE: MANDI (H.P)
ANNEXURE I
FORMAT FOR OTS PROPOSAL IN NPA ACCOUNT UPTO Rs. 10 LAKH

BRANCH OFFICE REGIONAL OFFICE..
Date:
1. Name & Address of the Borrower: Recommended: Acceptance of compromise offer of
Rs. ..against Indicative OTS Amount of Rs.
.. and Recoverable Dues (As per policy) of
Rs as on * .
2. CBS Account No.:

Details of dues: (Amt. in Rs.)
3. Date of Advance: Balance O/S as on . Rs.

(Date of NPA/WO)
4. Amount Advanced:
Add: Debits(If any)excluding interest Rs.
5. Purpose of Advance: Add: Debits(If any) Rs.
Add: DI Credited in A/c, if any Rs.

6. Sponsoring Agency, if any:
Less: Recovery made (After NPA/WO) Rs.
Kitty Balance in case of W.Off A/c Rs.

7. Present status of the account:
a. Non-suit filed (Limitation upto) Balance O/S in Books as on .. Rs.
b. Recovery Certificate filed on

Intt. (as per Policy) @__% from the date of Rs.
c. Suit filed (Date & Status)
classification of the account as NPA i.e.
d. Decreed (Date & Status)
from..to.(Till last quarter)
8. Asset Classification
Add: Legal/other Charges(If any)not debited to Rs.
Sub Standard/Doubtful/Loss
account
NPA Date.Amount
Recoverable dues as on . (last Rs.
Income to be booked `.
quarter)
Impact on profitability `
9. Name (s) of Borrowers /Guarantor(s) with Less: Amount of Subsidy/DICGC/CGFT claim Rs.
available for appropriation
their means
Name NM IP CR dated
Compromise offer Rs.
Waiver/sacrifice To be accounted for: Rs.
91
-To waiver of legal/other expenses. Rs.
10. Present Business Activity (unit/obligants) -To Set off Recorded Interest in books Rs.
-To debit of Bank Revenue Rs.
Certified that Recoverable Dues have been calculated as per guidelines as per Circular No.
dated
Present Balance Outstanding : Rs.
Recorded Interest upto last quarter : Rs.
Other Charges : Rs.
Total Dues as per Memoranda Record :
*Preceding quarter of date of proposal for compromise
11. Position of Security:
At the time of Present MarketNPRV* Basis of valuation Advance Value
a. Primary
b. Collateral
c. Other Attached Assets
* Calculation Sheet is enclosed.
12. Position of DICGC/CGFT Claim :
Lodged (Date /Amount) Settled (Date /Amount) Amount Available For

Appropriation
13. Brief History of the account:
14. Staff side if any: Yes/No (If yes, give details)
15. Justification:
16. Terms and Conditions:
17. Recommendations of Branch Manager
Signature of Incumbent- In-charge
18. Recommendations of Regional Office Compromise Committee:
ORDERS OF SANCTIONING AUTHORITY
92
SEIZURE AND SALE OF VEHICLES (INCLUDING TRACTORS) OF DEFAULTER BORROWERS
Procedure to be followed by the Branches for repossession and disposal of the security of vehicle including
Tractors is given hereunder:
(i) Branches shall resort to repossession of security only for the purpose of realization of its dues in default
as the last resort and not with whimsical intention of depriving the borrower of security / vehicle.
(ii) In addition to the usual / normal recovery reminders / notices / efforts, a 15 days notice calling upon the
borrower to remedy the default shall be given (with copy to guarantor/s) in writing in local vernacular
language. Draft notice is enclosed as ANNEXURE-I.
(iii) In case the default persists, another possession-cum-sale notice of 10 days shall be given to
borrower / guarantors in writing in local vernacular language intimating the date of taking over
possession of the vehicle / tractor and conveying banks intention of selling it to recover its dues on a
date to be specified in the notice. Draft Notice is enclosed as ANNEXURE-II.
(iv) The borrower shall be at liberty to repay banks dues on any day before the date fixed for sale and get
back possession of his vehicle. In such an eventuality further action of sale shall be stopped.
(v) Estimated price of vehicle shall be ascertained and notified to the borrower / guarantor, and on the
notified date for sale, the vehicle shall be sold by public auction and/or through a private contract at the
sole discretion of the bank in a fair and transparent manner, where borrower will also be advised to be
present. The depreciated value of the vehicle/tractor may be taken as estimated value. However, as an
additional safeguard, estimated value may be got valued from a Surveyor. Draft Notice is enclosed as
ANNEXURE-III.
(vi) Proceeds of sale, net of expenses incurred in this regard, shall be promptly credited to borrowers loan
account towards liquidation. Any surplus shall be refunded to the borrower and for any deficit further
recovery action shall be initiated as per our normal guidelines. Draft Notice is enclosed as ANNEXURE-I
For taking possession and /or for Sale, the Branch Manager may require services of a Seizure Agency.
1. M/s Sharma Agency, Prop Sh. Dev Raj Sharma shop no. 62B, Near State Bank of Patiala,
Bilaspur(H.P)
2.M/s G.S. Kashyap Associates VPO Gutker The. Ballh Distt. Mandi H.P. Mob. 80910-30900, 94183-27821
After seizure of the vehicle, prompt and quick steps shall be taken to dispose off / sell the vehicle but in any
case not exceeding 60 days from the date of seizure, failing which the vehicle / tractor may be restored back to
the borrower.
Note:This is only for ready reference of Field Functionaries. Detailed guidelines issued to all offices
Vide Loan/NPA Circular No. 21/2013 dated 04/03/2013 must be complied with.
93
RECOVERY PROCEEDING THROUGH LOK ADALAT
The institution of Lok Adalat constituted under Legal Services Authorities Act 1987 helps in resolving the
dispute between parties by conciliation, mediation, compromise or by amicable settlement. Every award of the
Lok Adalat shall be deemed to be a decree of civil court and no appeal shall lie to any court against the award
made by the Lok Adalat being an avenue open for settlement may continue to utilized for amicable settlement
of cases to reduce NPA.
Lok Adalat are being conducted by various DRTs. Such Lok Adalat in DRT matters are not being conducted in
terms of the Legal Services Authorities act. These provide a avenue to arrive at mutually acceptable amicable
settlements. If settlement is arrived at, it shall be ensured a memo of compromise if filed before DRT and
consent adjudication order is obtained.
In such matters, as the dates that may be fixed for such Lok Adalat normally provide enough time and the
matter may be taken up in such Lok Adalat are known. Lok Adalat cases therefore, shall be examined in
advance by the concerned compromised committee/s within in their vested powers.
Detailed guidelines issued to all offices vide Loan/NPA Circular NO. 20/2015 dated 09/04/2015.
RECOVERY PROCEEDINGS UNDER H.P. PUBLIC MONEY RECOVERIES

OF DUES ACT- 2000 ---FILING OF RECOVERY CERTIFICATES
The recovery certificate proceedings under H.P. PUBLIC MONEY RECOVERIES OF DUES ACT 2000provide
expedient and speedy remedy for banks dues under Agriculture, Agriculture and Allied activities and stat
Sponsored Schemes. Besides this, the recovery certificate can also be filed in cases where financial
assistance has been rendered for the purpose of vocational and technical training: or for the construction of
residential buildings; or for providing drinking water, kuhl or pipeline; or for the establishing, expending,
modernizing, renovating or running any village or cottage industry, industrial undertaking or agro industry etc.
according to this act, a banking company, for recovery of dues, may without prejudice to any mode of
recovery under any other law for the time being in force, send a certificate to the Collector, mentioning
the sum due from such person and requesting that such sum together with the cost of the
proceedings or any other sum be recovered as if it were an arrear of land revenue.
In the above context, the State Government has notified that all the Sub Divisional officer (Civil) in the state will
act as Collectors in their respective jurisdiction to perform the function of Collector to carry out the provision of
the Act. Under Section 3 of the act, the Banking company availing the services of collector shall pay collection
charges @ 8% to State Govt.( as may be modified by the State Govt. by time to time) of the amount to be
recovered from the defaulter as an arrear of land revenue.
Detailed guidelines issued to all offices vide Loan Circular NO. 26/2014 dated 16/06/2014.
94
DISHONOUR OF CHEQUE & ELECTRONIC FUND TRANSFER (EFT) FOR
INSUFFICIENCY OF FUNDS - REMEDIES AVAILABLE TO THE BANK
Both Civil and Criminal action can be initiated by the Bank, in case of dishonor of a cheque or EFT, for
insufficiency of fund.
A. CIVIL ACTION:
1. If the amount recoverable is less than Rs. 10 lakh, Bank can file summary suit under Order XXXVII of the
Civil Procedure Code, 1908 for recovery of the amount thereof.
2. If the amount recoverable is Rs.10 lakh or above, recovery suit can be filed before DRT having jurisdiction.
B. CRIMINAL ACTION:
To be eligible to proceed u/s 138 of the NI Act, the following aspects will have to be complied with:
1) The cheque must have been issued for the discharge, in whole or in part, of any debt or other liability.
2) The cheque must be presented to the Bank within 3 months from the date on which it is drawn or within its
validity, whichever is earlier.
3) The cheque must have been returned by the bank unpaid for the reason:
i. Either because of the amount of money standing to the credit of that account is insufficient to honour the
cheque i.e. for the reason of insufficient funds . or
ii. The amount of cheque exceeds the amount arranged to be paid from the account by an agreement with
the bank.
4) The Bank should make a demand for payment of the cheque amount by giving a notice in writing to the
drawer of the cheque within 30 days of receipt of information that the cheque has been bounced.
5) The drawer of such cheque fails to make payment of the cheque amount within 15 days of the receipt of the
notice.
ISSUANCE OF DEMAND NOTICE:
In terms of Section 142 of the N.I. Act, complaint can be filed before the Metropolitan Magistrate or a Judicial
Magistrate within one month, of the date of expiry of 15 days period allowed for making payment from the date
of receipt of the Demand Notice as mentioned in (5) above.
SERVICE OF DEMAND NOTICE:
While issuing the demand, it be ensured that correct address of the noticee is mentioned and the notice should
be sent by Registered AD Post and UPC. Demand notice can be issued through Advocate or by the bank
official as per the draft enclosed (ANNEXURE-I, II & III) after making suitable amendments therein, having
regard to the facts of each case.
Note: This is only for ready reference of Field Functionaries. Detailed guidelines issued to
all offices vide Loan Circular No. 18/2013 and NPA Circular letter No. 06/2015 must be
complied with.
95
ANNEXURE-I
Himachal Pradesh Gramin Bank, Branch Office: ________

Demand Notice in case of Individuals
Registered AD/U.P.C.
Date _______
1. Shri ________________
S/o Shri _____________
Resident of ___________
_________________________
Notice is hereby given to you under section 138 of the Negotiable Instruments Act, 1881 (the Act) read with
Section 141of the Act on the following grounds:
You have availed credit facilities from the bank by way of (give brief description of the facility account number
etc.). For liquidating part of liability under the said credit facilities, you have issued Cheque bearing No.
________ dated _________ for Rs. _________ drawn on _______________________ .
That the said cheque was presented by the Bank to M/s _____________ (Name of the Bank) the Bank on
which it was drawn and the same has been returned unpaid with the reasons _____________________ .
The information regarding returning of the cheque has been received by the Bank on ________________.
You are hereby called upon to make payment of the amount of the aforesaid cheque within 15 days from the
date of receipt of this notice failing which appropriate criminal/ and civil actions will be taken against you under
the provisions of the Act/law.
Please note accordingly.
Yours faithfully
BRANCH MANAGER
96
INITIATION OF ACTION UNDER SARFAESI ACT 2002
With a view to put in place appropriate mechanism for enforcing the secured assets for speedy recovery of
the bank dues in borrowal accounts categorized as NPA in accordance with the Act, the Regional Managers
will act as the Authorized Officers to exercise the rights of the Bank in terms of clause(12) of Section (13) of
the Act.
In terms of Section 13(4) of SARFAESI Act, 2002, the secured creditor is conferred with the following powers
to take one or more of the following measures to enforce the Security Interest for the recovery of secured
debt :-
1. To take possession of the secured assets of the borrower, including the right of transfer by way of lease,
assignment or sale for realizing the secured asset.
2. To take over the management of the business of the borrower, including the right to transfer by way of
lease, assignment or sale for realizing the secured asset.
3. To appoint any person to manage the secured assets, the possession of which has been taken over by the
secured creditor.
4. To require by notice in writing, any person, who has acquired any of the secured assets from the borrower
and from whom any money is due or may become due to the borrower to pay the secured creditor, so
much of money, as is sufficient to pay secured debt.
Note:
a) Borrower here means a borrower or guarantor, who has credited any security interest in property for
obtaining financial assistance from a bank.
b) Secured creditor includes a bank, who has granted such financial assistance.
c) Security interest means interest of any kind upon the property, created in favour of secured creditor,
and includes :-
I. Mortgage
II. Hypothecation
III. Charge
IV. Assignment,
but does not include:
I. lien on any goods, money or security
II. pledge of movables
III. conditional sale or hire purchase contract
d) The property includes:-
I. Immovable Property
II. Movable Property
III. Any debt or any right to receive payment of money
IV. Receivables, whether, existing or future.
V. Intangible assets like copy right, trade mark, license or any other right of similar nature.
Eligibility Criterion:
The Branch Managers should ensure the following points before sending proposals for initiation of action
under SARFAESI Act:-
1. The account should have been classified in the books of the Bank as non-performing assets (NPA), as
per RBI guidelines.
2. The full amount in the account should have been recalled, after taking prior permission from the
competent authority on the performa enclosed as Annexure-SI-I.
3. The guarantee must have been invoked, by recalling full amount from the guarantor, on the performa
enclosed as Annexure- SI-2.
4. The amount sanctioned in the account should exceed Rs. one lac.
5. The amount due in the account is not less than 20% of the principal and interest thereupon.
6. The secured asset is neither agriculture land nor any property, not liable to attachment under section 60
of C.P.C.
97
7. The claim in respect of financial asset must be made within the period of limitation, prescribed under
Limitation Act, 1963.
Authorised Officer:
The Competent Authority has authorized all the Chief Managers (Scale IV) working in the branches as well as
Regional Managers to act as Authorised Officers to exercise the right of the Bank under SARFAESI Act for
taking legal action for recovery of Banks dues in the eligible loan cases.
Authority for initiation of action under the Act :
Incumbents-In-charge of the branches irrespective of the Scale shall have full powers irrespective of
amount of loan outstanding, to get administrative sanction for recall and taking SARFAESI ACTION through
SI-2.On taking an administrative decision to initiate action under SARFAESI, the matter shall be referred
maximum within 3 working days to the concerned Regional Manager (designated Authorized Officer) by
submitting the approved copy (by Incumbent) of SI-2 along-with the Draft Notice under Section 13(2) of the
Act, who then shall issue the 60 days Notice under Section 13(2), maximum within 3 working days of
receipt of such requisition from the Branch Incumbent as per format SI-4 for borrower and SI-4A for
guarantors.
All actions under SARFAESI however shall continue to be taken by such designated Authorized
Officer.
The Act facilitates enforcement of security interest by secured creditors without intervention of the courts. The
field functionaries should make effective use of the rights of enforcement of security interest, as provided in the
Act, for quicker reduction of NPAs.
Enforcement Agencies to provide assistance under SARFAESI Act 2002
Address & Contact nos. of the Agencies are appended here below:
1. M/S Funds Collixn, Recovery and Enforcement Agency, Opp. PCCN,
PO. Bandla, Tea Estate, Palampur, Distt. Kangra (H.P.) 176061
2. M/sB.L.Thakur & Associates Prop. Sh. Brij Lal Thakur
House No. 269/13,Sauli Khad Mandi H.P. Mobile: 94180-14445
Note: This is only for ready reference of Field Functionaries. Detailed guidelines issued to all offices
vide Loan Circular NO. 24/2007 dated 17/07/2007, NPA Circular No. 52/2007 dated 21/09/2007 and
Loan/NPA Circular No. 27/2014 dated 26/06/2014
98
Annexure-1
HEAD OFFICE: MANDI
BRANCH OFFICE:_________________
SI-1
LETTER TO BORROWER(S)
(Recall Notice)
Date________
--------------------------
--------------------------
--------------------------
Dear Sir(s),
With reference to your account against security of,, we point out that the account has become irregular due to
the following reasons:
___________________
---------------------------
We regret that no steps have so far been taken by you to set right the irregularity. Under the circumstances,
we are unable to continuation of the aforesaid account. The account shows a debit balance of
Rs._____________as on __________ with interest upto_____________.
We request you to pay the aforesaid amount with further interest at the rate agreed upon upto the date of
actual payment within_______days from the receipt of this letter, failing which the bank will be constrained to
take such legal steps as necessary may be at your risk and responsibility to recover the amount with interest,
costs and other charges and enforce the securities held.
We have full confidence that you will be good enough to settle the account within the aforesaid time and will
thereby preclude the contingency of a legal action.
Yours faithfully,
For Himachal Pradesh Gramin Bank
Manager
99
HIMACHAL PRADESH GRAMIN BANK HEAD OFFICE: MANDI
BRANCH OFFICE:_________________
SI-1A
LETTER TO GUARANTOR(S)
(INVOCATION OF GUARANTEE)
Date________
---------------------------------
--------------------------------
--------------------------------
Dear Sir(s),
In connection with____________ account of Sh./M/s______________________(Borrower) guaranteed by

you, we point out that the account has become irregular due to the following reasons:
_____________________________
-----------------------------------------
We have recalled the payment of balance due in the above account/s, vide notice dated____________to the
borrower/s
We regret that no steps have so far been taken to set right the irregularity. Under the circumstances, we are
unable to continuation of the aforesaid account. The account shows a debit balance of Rs._____________as
on __________ with interest calculated upto_____________.
We hereby invoke the guarantee and call upon you to pay the aforesaid amount with further interest at the rate
agreed upon upto the date of actual payment within_______days from the receipt of this letter, failing which
the bank will be constrained to take such legal steps as may be necessary at your risk and responsibility to
recover the amount with interest, costs and other charges and also enforce the securities held.
We have full confidence that you will be good enough to settle the account within the aforesaid time and will
thereby preclude the contingency of a legal action.
Yours faithfully,
Manager
100
Annexure II

HEAD OFFICE: MANDI
BRANCH OFFICE:_____________________
SI-2
PROFORMA FOR RECALL AND SEEKING PERMISSION FOR EXERCISE OF POWERS
FOR ENFORCEMENT OF SECURITY INTEREST
1. Branch Office
2. Regional Office
3. Name of Borrower(s)
(a) Constitution
(b) Name(s) of Proprietor(s)Partner(s) Directors
4. Details of Credit Facilities
Nature Sanctioning Amount of
of limit Authority limit
5. Details of collateral securities held Nature Value of Balance O/S

(Mention date of mortgage, if any.) of security security as on_____
1
2
3
(*Please clearly indicate if the security is specific
for a particular facility or common to
6. Name of Guarantor/Mortgagor who has more
than one facility.) created security interest.
6-A Name of the person/persons who has
mortgaged the IPs to Bank.
7. Whether it is a case of consortium advance/

joint financing? If so, give name(s) of other secured
creditors & their exposure. Whether necessary consent
has been obtained or is to be obtained?
8. Whether any matter relating to the security

interest is pending before Court/ DRT or before
BIFR/AAIFR? If so, present status thereof.
9. Whether secured debt qualifies for

enforcement?
A. ELIGIBILITY CRITERIA
a) Is the account classified as NPA? (Give
(date) details as to when the account
has become NPA and why the account
is termed as NPA)
101
ii) The amount due is more than 20% of principal amount
and interest thereon.
iii) Is the security interest to be enforced not under an

exempted category?
Limitation for personal liability

LIMITATION CRITERIA
is available upto ___________________
Limitation for enforcement of security is available

upto _____________________
VALUE CRITERIA Valued at Rs._____________

value of the asset of which the security interest is
created. (Give basis of the valuation)
_____________________
Is the security interest Marketable/ realizable? (Give The following dues to the Govt. have to be met:
supporting reasons)
Details of encumbrances:
If security interest is subject to prior encumbrances,
1. The security interest is free from will the realizations
also provide
meeting the liability surplusofafter
in respect encumbrances.
prior OR
encumbrances? (give your appraisal) 2. The security interest is subject to the following
encumbrances:_________________
Surplus will be to the extent of Rs.

_______________
Other outgoings:
Security interest in respect of goods? If so, The following outgoings have to be met : Sales Tax
needs to be paid (Give your _____________________
observations whether it will be borne by the _____________________
purchaser or the bank has to bear it and what will be
the likely amount).
Dues due to the Government.
(Give details of the EPF, ESI dues, Sales Tax in arrears,

income tax or any other taxes, fees or charges to be
paid to Govt. or Governmental authorities, Municipalities
and also state whether they rank in priority.
Is the borrower Company under liquidation
102
State the estimate of workmen dues (If Known)
Conditions required to be fulfilled before 60 days
notice.
Give details of persuasive notices/ letters issued to the
borrower and guarantor and the response received.
Whether loan documents and security documents have
been scrutinised and the same are complete and in
order?
FINAL RECOMMENDATIONS
(Brief history of the account mentioning as to how it
became irregular/NPA and as to what efforts were
made for its regularization be enclosed. Including the
recommendations for recall of the facilities) As there are prospects of recovery by resorting to
the provisions of the SARFAESI Act, it is
recommended that sanction may be accorded for
recall and exercise of powers/ rights under the
said Act against the undernoted
borrower/guarantor/mortgagor in respect of the
security interest mentioned there against:
1.
2.
3.
103
Please send photo copy of Title deeds, NEC report of Advocate and valuation report.
As the recovery in normal course is not possible, hence we recommend to initiate action under SARFASI Act
against the borrower to recover the banks dues.
MANAGER SR MANAGER REGIONAL MANAGER
Annexure III
HIMACHAL PRADESH GRAMIN BANK H.O. MANDI H.P.
REGIONAL OFFICE/BRANCH OFFICE:____________________ SI 4
DATE:______________________
_____________________________
_____________________________
DEAR SIR/MADAM
NOTICE U/S 13(2) of the Securitisation and Reconstruction of Financial Assets and
Enforcement
of Security Interest Act 2002 (SARFAESI)
REG : A/C NO. _________________________________________ FACILITY AVAILED

BY SHRI
______________________________________________FROM HIMACHAL PRADESH GRAMIN BANK
BRANCH OFFICE________________________________
You have availed the following facility:

Sr. Facility Limit Balance outstanding
No as on___________
1 Term Loan
2 CC Limit
TOTAL
Due to default in payment of installment/ interest/ principal debt, the account/s has/have been
classified as Non Performing Asset ________________as per Reserve Bank of India guidelines.
In the circumstances, we are unable to permit continuation of the above facility (ies) granted.
We, therefore, hereby recall the above facilities.
The amount due to the bank as on_____________is

Rs.____________(Rs._________________________) + intt. w.e.f _______________at the
contracted rate + other charges until payment in full (hereinafter referred to as secured debt
104
To secure the outstanding under the above facilities, you have, inter alia, created security interest
in respect of the following properties/assets.
Sr.No Facility Security(Give details)
1
We hereby serve upon you notice under Section-13(2) of SARFAESI and call upon you to pay the
entire amount of Rs.___________(Rs._______________________________________________)
+ interest w.e.f ____________at the contracted rate+ other charges until payment in full
(hereinafter referred to as secured debt) within 60 days(sixty days) from this notice.
In default besides exercising other rights of the Bank as available under Law, the Bank is intending
to exercise any or all of the powers as provided under section 13(4) of the SARFAESI Act 2002.
The details of the secured asset/s intended to be enforced by the Bank, in the event of non- payment
of secured debt by you are as under:
Sr.No Facility Security(Give details)
1
Please take notice that in terms of section 13(13) of the said Act, you shall not, after receipt of
this notice, transfer by way of sale, lease or otherwise any of the secured assets above referred to,
with out prior written consent of the Bank. You are also put on notice that any contravention of
this statutory injunction/restraint, as provided under the said Act, is an offence.
We reserve our rights to enforce other secured assets

Please comply with this demand under this notice and avoid all unpleasantness. In case of
non- compliance, further needful action will be resorted to, holding you liable for all costs and
consequences.
This notice is issued without prejudice to the bank taking legal action before DRT/Court, as the
case may be.
Yours faithfully,
(AUTHORISED OFFICER)
105
Annexure-V
POSSESSION NOTICE
(FOR IMMOVABLE PROPERTY)
Whereas
The undersigned being the Authorised Officer of the Himachal Pradesh Gramin Bank under
the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act,
2002and in exercise of Powers conferred under Section 13 read with the Security Interest
(Enforcement) Rules, 2002, issued a demand notice dated calling upon the Borrower
Shri________________________M/s_______________________________ to repay the amount
mentioned in the notice being
Rs._________________(Rs._____________________________________________________)
Within 60 days from the date of notice/date of receipt of the said notice.
The borrower having failed to repay the amount, notice is hereby given to the borrower and the
public in general that the undersigned has taken possession of the property described herein below in
exercise of powers conferred on him/her under Section 13(4) of the said Act read with Rule 8 of the
said Rules on this _________________ day of the year
The borrower in particular and the public in general is hereby cautioned not to deal with the
property and any dealings with the property will be subject to the charge of the Himachal Pradesh
Gramin Bank for an amount of Rs._______________and interest thereon.
Description of immovable property
All that part and parcel of the property consisting of Flat No/Plot No._________in Survey
No.________Khasra No. within the registration sub-district and district
Bounded:
On the North by:

On the South by:
On the East By:
On the West By:
Date:
Place:
(Name & Designation)

Authorized Officer
106
To
1. .
..
.. (Borrower)
Subject: FINAL NOTICE: Non-Production of hypothecated Vehicle for inspection before the Bank.
Sir,
You have been advanced the financial assistance to the extent of Rs. .. on interest @
% pa with . rests, from the Himachal Pradesh Gramin Bank, Branch ,
District ., H.P. after you had duly executed the Loan agreement and other documents in
favour of the Bank on , for purchase of Vehicle. You had undertaken to hypothecate /
hypothecated the said Vehicle in favour of the Bank. You have agreed to repay the loan amount with
interest in equal monthly installments.
You had undertaken to produce the said Vehicle for inspection from time to time, as and when
called upon by the Bank, as per the terms and conditions duly agreed by you. You are well aware that the
Bank is the de jure owner of the said hypothecated Vehicle till the full satisfaction of the loan amount with
interest, charges and expenses of the Bank.
You have, however, failed to produce the said Vehicle for inspection despite the several requests
and visits of the Bank Officials. You are well aware that non-production of the hypothecated Vehicle for
inspection to the Bank is unlawful and illegal under the law.
You are hereby once again called upon to produce the said Vehicle for inspection on .
to the Bank Official, failing which the Bank shall be left with no option but to lodge a criminal complaint
against you for cheating, misappropriation, breach of trust, etc., in accordance with law, and in that event
you shall be liable for all risks, cost and consequences. Treat it as final notice.
107
Manager
To
1. .
..
..
Subject: FINAL NOTICE: Non-Submission of Registration Certificate of Vehicle to the Bank.
Sir,
% pa with . rests, from the Himachal Pradesh Gramin Bank, Branch ,
District ., H.P., after you had duly executed the Loan agreement and other documents in
favour of the Bank on , for purchase of Vehicle.
You had undertaken to get the hypothecation entered in the Registration Certificate of the said
Vehicle, in favour of the Bank. You had also undertaken to submit the copy of the R.C. of the vehicle,
containing hypothecation clause, to the Bank immediately.
You have, however, failed to submit the copy of the R.C. of the vehicle, containing hypothecation
clause, to the Bank till date, despite several requests. It appears that you are plying the said vehicle
without R.C., which is highly wrongful and illegal under the law.
You are hereby once again called upon to get the hypothecation entered in the R.C. of the said
vehicle in favour of the Bank and to submit the copy of the R.C. of the vehicle to the Bank within . days
from the date of this letter, failing which the Bank shall be left with no option but to lodge a criminal
complaint against you in accordance with law, and in that event you shall be liable for all risks, cost and
consequences. Treat it as final notice.
Manager
108
To
1. .
..
.. (Borrower)
2.
(Guarantor/s)
Subject: FINAL NOTICE: Non-Production of hypothecated Machinery / Equipments for Inspection before the
Bank.
Sir,
% pa with . rests, from the Himachal Pradesh Gramin Bank, Branch , District
., H.P. after you had duly executed the Loan agreement and other documents in favour of the Bank on
, for purchase of Machinery / Equipments, on the Guarantee of Addressee no.2 /3. You had
undertaken to hypothecate / hypothecated the said Machinery / Equipments, in favour of the Bank. You both / all
have agreed to repay the loan amount with interest, jointly and severally, in equal monthly installments.
You had undertaken to produce the said Machinery / Equipments for inspection from time to time, as
and when called upon by the Bank, as per the terms and conditions duly agreed by you. You are well aware that
the Bank is the de jure owner of the said hypothecated Machinery / Equipments till the full satisfaction of the
loan amount with interest, charges and expenses of the Bank.
You have, however, failed to produce the said Machinery / Equipments for inspection despite the several
requests and visits of the Bank Officials. You are well aware that non-production of the hypothecated
Machinery / Equipments for inspection to the Bank is unlawful and illegal under the law.
You are hereby once again called upon to produce the said Machinery / Equipments for inspection on
. to the Bank Official, failing which the Bank shall be left with no option but to lodge a criminal
complaint against you all for cheating, breach of trust, misappropriation, etc., in accordance with law, and in
that event you all shall be liable for all risks, cost and consequences. Treat it as final notice.
Manager
109
Draft letter for lodging FIR
Before the Honble Suprintendent of Police, ., H.P.
In the matter of :
Himachal Pradesh Gramin Bank, with its Head Office in Jawahar Nagar, Mandi Town, District Mandi, H.P.,
having its branch Office in .., Tehsil ., District .., H.P., through its
Manager.
. Complainant.
Versus
1.
2.
.. Accused Persons.
Subject: Complaint for Registering F.I.R. against the accused person/s, in accordance with Law (u/Secs.
403,405-406, 420, 422, 424-425, 34, 120-B etc. IPC), for cheating the Complainant-Bank by wrongfully,
dishonestly and illegally and with criminal intention to misappropriate / divert the loan funds for some other
purpose instead of for which it was given to him by the Complainant-Bank, and mis-representing with common
criminal intention to defraud, to cheat and cause wrongful loss to the Himachal Pradesh Gramin Bank, Branch
, Tehsil .. , District ., HP, on behalf of the Complainant-Bank.
Sir,
The complainant humbly submits as under:
1. That the complainant is a Regional Rural Bank having its Branch office at ., District
., HP, which has duly authorized its Officer / Branch Manager to initiate legal proceedings against
the defaulting and accused persons, who also happen to be the Borrower (Accused No.1) and introducer /
Guarantor (Accused No. 2/3).
2. That the Accused persons had approached the Complainant Bank for grant of financial assistance to the
Accused person no.1 for the purchase of the Vehicle, i.e. ..... , to the extent of
Rs as Term Loan, under . Scheme, which was advanced by the
Complainant-Bank. The Accused no.1 had duly agreed to the terms and conditions of the Loan documents dated
110
. and also agreed to hypothecate / hypothecated the said Vehicle in favour of the
Complainant-Bank.
3. That the Accused no. 1 had represented to the Complainant-Bank that he intended to purchase the vehicle
from the dealer / supplier . Thus, on the authority given by the Accused No.1 to the
Complainant-Bank, the cheque / Demand Draft for Rs. .. has been sent to the said dealer / supplier
as a sale consideration for delivering the requisite vehicle to the Accused No.1.
4. That the Accused no.1 had agreed to submit the details of the vehicle and copy of the Registration
Certificate of the Vehicle (containing hypothecation clause qua the said vehicle), in favour of the Complainant-
Bank, after the delivery and registration of the said vehicle. The Accused No.1 kept dilly dallying in giving the copy
of Registration Certificate containing the hypothecation clause to the Complainant-Bank, to be kept by the
Complainant-Bank in the loan record. However, the Accused failed to submit the copy of R.C. of the said vehicle
to the Complainant-Bank despite several letter/s in this respect.
5. That on seeing such unusual behavior of the Accused no.1 in his reluctance to produce the copy of
Registration Certificate of Vehicle to the Complainant-Bank, the Complainant-Bank got suspicious, hence this
Complaint.
6. That the Complainant has reason to believe that the Accused persons have, conspiring with criminal
intention, committed breach of trust and have misappropriated the loan amount and did not use the same for
creating the security as per the duly executed loan documents and/or misappropriated the sale consideration.
Thus the Accused persons have played fraud upon the Complainant Bank and have also cheated the Complainant
and committed breach of trust, hence this complaint.
It is, therefore, humbly prayed that an appropriate and immediate action may kindly be taken against the
Accused Persons by lodging a FIR against them for illegally and wrongfully diverting the loan
Amount for some other purpose than for what it was given; or with a criminal intention and conspiracy to cause
wrongful loss to the Bank; for cheating; for criminal breach of trust; for misappropriation of the loan amount; for
not giving the copy of registration certificate with hypothecated clause.
Place: Mandi, H.P. Complainant-Bank
Date: through Manager
Himachal Pradesh Gramin Bank, Branch
District .., Himachal Pradesh.
LIST OF ANNEXURES
111
1. Copy of Registration Certificate of the vehicle submitted by the Accused to the Bank.
2. Letter of Authority by the Borrower to make the payment to the Dealer
3. Letter/s calling the Accused to submit the copy of Registration Certificate of vehicle with
hypothecated clause to the Complainant-Bank.
___________________________________________________________________________________
REG: SCHEDULE OF FEES OF ADVOCATES & OTHER GUIDELINES.

A. FEES PAYABLE TO ADVOCATES.
(i) Recovery Suit/OA whether by or against the bank.
Fee payable is as under:-
CLAIM AMOUNT IN RECOVERY SUIT/ FEES PAYABLE

ORIGINAL APPLICATION
Upto Rs. 10,000/- 12% (Minimum fees payable is

Rs.750/-)
Over Rs. 10000/- upto Rs. 20000/- Rs.1200 + 8% above 10,000
Over Rs. 20000/- upto Rs. 50000/- Rs.2000 + 5% above 20,000
Over Rs. 50000/- upto Rs. 1 lac Rs.3500 + 3% above Rs. 50,000
Over Rs. 1 lac upto Rs. 5 lac Rs.5000 + 1.50% above Rs. 1 lacs
Over Rs. 5 lacs upto Rs. 10 lacs Rs.11000 + 0.8% above Rs. 5 lacs
Over Rs. 10 lacs upto Rs. 50 lacs Rs.15000 + 0.25% above Rs. 10 lacs
Over Rs. 50 lacs upto Rs.1 Crore Rs.25000 + 0.1% aboveRs.50 lacs
Over Rs.1 Crore Rs.30000 Maximum
(ii)Filing of applications for interim reliefs like appointment of Receiver/Commissioner,
attachment before judgment and injunction etc.
10% of the fee payable in the recovery Suit/ OA which is payable only on disposal of the
applications. Maximum of total fees payable in all such applications will remain same i.e. Rs.
5000/-.
(iii)Suit/Original recovery application (OA) decided ex parte.
Two third of the fee payable in recovery suit / OA claim. However, in case of suit / OA which is
decided ex parte and which is ex parte since the time of filing of suit / OA, 50% of the fee payable
for the amount claimed in suit/OA is payable.
(iv)Contesting setting aside (one or more ) applications of ex- parte decree/order passed in
favour of bank.1/10th of the fee payable in recovery suit/OA claim.On decree being set aside, it
will be dealt as continuation of suit and accordingly counsels fee will be payable.
(v) Appeal against Decree in Suit/Final Order in Original recovery application (OA).Same
fee as payable for recovery suits/OA.
(vi)Review/Revision of Judgement /Adjudication order. For Review, fee payable is Rs. 5000/- and
for Revision, fee payable is Rs. 5000/-.
(viiAppeal against orders other than final order/decree of the court/presiding officer
of DRT in the suit/OA.1/4th of the fee payable in recovery suit/OA subject to the minimum of Rs.
5000/- and maximum of Rs.10, 000/-.
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(vIII) Recovery proceedings (execution of recovery certificate) in
DRT/Execution proceedings in Civil court.
a) Execution proceedings in civil court
Fees in the first execution application before civil court should not exceed 2/3rd of the fee
payable for recovery suit / OA on the amount
claimed in the execution application. On subsequent application, fee should not exceed 25% of
the fee calculated for recovery suit / OA on the amount claimed in the application.
b) Recovery proceedings in DRT before Recovery Officer.
If the advocates services are utilized for the purpose of execution of recovery certificate, his fees
will be payable as in the case of first execution application i.e. fee should not exceed 2/3 rd
of the fee payable as for OA of the amount of the recovery certificate subject to the maximum of
Rs.15,000/-.
c) Execution petition/application for attachment of salary.
Maximum fee payable is Rs. 1000/-.
d) Filing restoration application, whenever any execution petition/application is
dismissed for want of appearance or default.
Whenever any execution petition/application is dismissed for want of appearance or default,
attempt should be made to restore the said application. In case any fresh application in such
circumstances has to be filed, no further fee will be payable to the counsel. In such matters, balance
fee, if any, will be payable on complete disposal of the execution petition(restored/filed
afresh).
(ix)Execution Appeals
Same fee as payable for execution application. However, in DRT matters, where number of
appeals are filed by third party/objectors against the order of RO, consolidated fees not exceeding
fees payable in the execution of Recovery certificate be settled before handing over the brief to
the counsel.
(x) Appeal from Order of Recovery Officer to Presiding officer.Fee payable is Rs. 5000/-.
(xi)Suit for Injunction and declaration by or against bank (except where bank is proforma
defendant) before Lower Court/Dist Court/High Court.Before lower courts other than the court of
District judge, fee payable is Rs. 6000; Before District Judge including additional District Judge, fee
payable is Rs. 10,000/- and before High court, fee is Rs. 12,000/-.
(xii) Suit against bank where bank is only proforma defendant or where the counsel has been
engaged by the bank to keep watch on the developments of the case including filing
of formal reply/written statement et
Fee of Rs. 3000/- is payable in case of suit before courts other than High court. Before DRT, fee
of Rs. 4500/- and before High court, fee of Rs. 6000/-is payable.
(xiii) Defending litigation under SARFAESI Act.
a) Defending the appeal under Section 17 of the SARFAESI Act /appeal to DRAT against final order of
DRT.
113
Fee payable is as under:-
AMOUNT INVOLVED FEE PAYABLE
Upto Rs. 10,000/- 10% (Minimum fees payable is
Rs.500/-)
Over Rs. 10000/-Upto Rs. 20000/- Rs.1000 + 8% Above 10,000
Over Rs. 20000/-Upto Rs. 50000/- Rs.1800 + 4% above 20,000
Over Rs. 50000/-Upto Rs. 1 lac Rs.3000 + 2% above Rs. 50,000
Over Rs. 1 lac Upto Rs. 5 lac Rs.4000 + 1.25% above Rs. 1 lacs
Over Rs. 5 lacs Upto Rs. 10 lacs Rs.9000 + 0.6% above Rs. 5 lacs
Over Rs. 10 lacs Upto Rs. 50 lacs Rs.12000 + 0.2% above Rs. 10 lacs
Over Rs. 50 lacs Rs. 20000 max
b) Drafting of reply in respect of objections raised by the borrower on the notice

served on him in terms of section 13(2) of SARFAESI Act or against measures
taken by the bank in terms of Section 13(4) of SARFAESI Act.
If the assistance of counsel is taken, minimum fees of Rs. 700/- and maximum of
Rs. 3000/- depending upon the work & labour involved is payable.
c) Fees for being present as a witness at the time of taking possession.
Fees of Rs. 500/- is payable.
d) Filing application before judicial magistrate seeking assistance for taking
possession.
Fee of Rs. 3000/- is payable
(xiv) Consumer Complaints before District Forums
1/3rd of fee payable for recovery suit/OA on the valuation of the services and the
compensation claimed subject to minimum of Rs. 2500/-.
(xv) Consumer Complaint/Appeal/Revision before State Commission.
For complaint/appeal, 1/2 of the fee payable for recovery suit/OA on the valuation of
the services and the compensation claimed
For revision, involving amount of valuation of services and/claim upto Rs. 10 lacs, fee
payable is Rs. 5000/- & for above Rs. 10 lacs, it is Rs.7,500/-.
(xvi) Consumer Complaint / Appeal / Revision / Review before National Commission.
For complaints/appeals/revision, minimum of Rs.12,000/- and maximum of Rs.20,000/- is
payable, depending upon the work & labour involved.
For review, maximum of Rs. 6000/- is payable depending upon the work & labour
involved.
(xvii) Writ petitions other than service matters (on consolidated basis).
(a) Where the bank is proforma defendant, fee payable is Rs. 5000/-.
(b) For contested matters, fee be negotiated in advance depending upon work & labour
involved subject to maximum of Rs. 20,000/-.
(xviii) Criminal Matters.
a) Private criminal complaints filed by the bank.
Fee of Rs.5000/- is payable.
b) Drafting of FIR.
Maximum fee payable is Rs.750/-.
114
B. STAGES OF PAYMENT.
In suits/OA, fees be paid to the advocate in three stages.
First stage - 1/3rd of the fees to be paid after the recovery application is drafted and filed in DRT.
Second stage - 1/3rd of the fees to be paid after filing/adducing of evidence.
Third stage Balance 1/3rd of the fees to be paid after the case is finally decided & the certified copy of the
final order is obtained.
For matters like drafting of FIR, drafting and issuing of legal notices, filing of applications for interim
reliefs and title deed investigation, fees will be paid on completion of work.
In execution petition/execution Appeals, fees shall be paid in two stages, half of the fees be paid at the
time of filing of execution appeal/execution petition. The balance fee shall be paid on complete disposal
of execution appeal / execution petition (other than dismissal for want of appearance for default).
In Appeals and miscellaneous matters, 50% of the fees shall be paid at the initial stage and balance 50%
shall be paid only on completion of the work/obtaining of the order as the case may be.
C. CLERKAGE AND OUT OF POCKET EXPENSES.
10% of the fees prescribed hereinabove will be paid to advocates as clerkage. Out of pocket expenses
will be paid on actual basis.
Annexure - III
FEES PAYABLE TO SUPPORTING AGENCIES FOR SALE OF ACQUIRED ASSETS
THROUGH AUCTION OR OTHERWISE
Amount credited in the NPA Fees payable on amount credited in the
account through sale of assets NPA account through sale of assets
Up to Rs. 10 lac 3% of the amount
More than Rs. 10 lac but up to Rs. 50 Rs 30,000/- + 2.5% of the excess of amount
lac over Rs. 10 lac.
More than Rs. 50 lac but up to Rs. 1 Rs 1,30,000/- + 2.0% of the excess of amount
crore over Rs. 50 lac.
More than Rs. 1 crore but up to Rs. 5 Rs 2,30,000/- + 1.5% of the excess of amount
crore over Rs. 1 crore.
More than Rs. 5 crore Rs 8,30,000/- + 1.0% of the excess of amount
over Rs. 5 crore.
Note
(i) Rates mentioned above are all inclusive of taxes whatsoever may be payable and
in case different assets are sold, amount of commission will be payable on the
consolidated amount credited in the NPA account.
(ii) The above fees be paid only when the Supporting Agencies have played active
role for sale of assets.
(iii) In case where supporting agencies have played a proactive role in recovering banks
dues through OTS or otherwise (normal recoveries) after taking possession under
the Act but there is no sale of assets, General Manager/Regional Manager may
approve fee to the Agency at the rate of 50% of normal fee (i.e. fee payable for sale of
asset) with the ceiling of Rs.1,50,000/- (one lac and fifty thousand only) and payable
to debit the Concerned borrower account in whose case SARFAESI ACTION has
been taken.
115
(iv) Moreover, such fee should be considered only if OTS fructify within a reasonable period
of taking possession of assets say not exceeding six months and actual recoveries are
made in the account.
(v) Head Office/Regional Office may settle pending cases if any, for payment of fee to
supporting Agencies in similar cases where recoveries were made from the party
without even entering into OTS on merit of each case within the framework of the
scheme.
(vi) Regional office/Branch should not stop/reduce payment of fees on one pretext or
the other unless it has sufficient reasons/documentary proof to believe that
Supporting Agency has played no role whatsoever, in the recovery effected in a
particular case.
SARFAESI ACT- Rates approved by Head Office, for Supporting Agencies
116
Pre-takeover Pre-takeover
Book Outstanding examination examination Pre-takeover examination of
of identified units/ of identified units/
OR assets assets identified units/ assets
Estimated Value Of including survey including survey including survey
Secured Assets AND AND
Facilitating bank in
seizure Facilitating bank in seizure of
WHICHEVER IS of securities/ taking securities/ taking actual
symbolic possession
LOWER of possession of movable and
movable and
immovable immovable assets
assets
1 2 3 4
Upto Rs.10 lac Rs. 4500 Rs. 9,000 Rs. 11,250
More than Rs. 10 lac to Rs. 6,000 Rs. 12,000 Rs. 15,000
less than Rs.50 Lac
Rs. 50 lac to less than Rs. 11,250 Rs. 22,500 Rs. 28,125
Rs.1 crore
Rs. 1 crore to less than Rs. 15,000 Rs. 30,000 Rs. 37,500
Rs.5 crore
Rs. 5 crore and above Rs. 22,500 Rs. 45,000 Rs. 56,250
Note-1
(i) For obtaining assistance of District Magistrate / Chief Metropolitan Magistrate for
taking over possession of securities, the fee shall be paid fees in two stages i.e (i)
50% at the beginning on moving the application and (ii) Balance 50% after
obtaining possession of the secured assets.
(ii) Where application is to be moved in different courts, separate fees shall be
payable
Note-2
The above rates mentioned under Columns No. 2, 3 & 4 above are per secured asset,
subject to the maximum ceilings given if there are more than one assets.
Note-3:In case stay granted against Banks SARFAESI Action is for a considerable period
say 2-3 years old and/or due to some other unavoidable reasons/extraordinary
117
circumstances (to be decided by the Head Office/Regional Office) a job, as mentioned
under Columns 2,3,4,5 of Annexure-II of the Policy is assigned to a Supporting Agency
afresh, Regional Office may decide to pay fees for more than one occasion, so as to
safeguard the Banks interest.
Rates mentioned above are all inclusive of taxes whatsoever may be payable
Annexure II (Continued)
Security watch and ward for preservation and protection of secured assets including
insurance
Minimum wages per Security Personnel fixed by the respective State Act (Number of security
personnel to be deployed shall be decided by the competent authority.
To act as custodian of secured assets
Transportation Charges (on actual basis) plus Godown Charges.
General Manager are permitted to sanction the fee not exceeding Rs. 7,000/- per month or
custodian services over and above watch and ward expenses, looking to the nature of assets
acquired and need for its maintenance.
Travelling Expenses:
(i) Travelling expenses equivalent to A/C II Tier Railway Fare for actual number of
persons not exceeding 3 in case of outstation visits from the Agency Head
Quarter or Circle Head Quarter, whichever is less.
(ii) (ii) No travel expenses in case of local securities situated at the Head Quarters of
the Agencies and/or situated at Circle Head Quarters, irrespective of distance.
Go-down Charges
Go-downs are required only when the securities are to be taken in Banks physical possession
and either there is no space available at the existing site or it is not practically feasible and
desirable to keep the securities at the same place, in the Banks interest. Generally such Go-
downs are located at places outside the City and the rates may vary from place to place and
according to nature of securities etc. In such cases fixation of rate/charges are market driven
and Circle Heads (for LCBs, Incumbent Incharge) may negotiate and finalize the charges
in line with the prevailing market rates. There can also be instances where Bank has surplus
place in premises under its own control which can be used as Go-down. It must be ensured
that Go-down charges to be paid to Supporting Agency are negotiated & informed well in
advance to them before assigning a task to them.
Rates mentioned above are all inclusive of taxes whatsoever may be payable
Operative Circular: NPA circular 26/15 dated 05.06.15,54/15 dated 08.08.15 ,68/15 dated 30.09.15,69/15
dated 30.09.15
Space for Amendment
118
REG: STAFF INCENTIVE SCHEME FOR RECOVERY OF NPAs (DOUBTFUL & LOSS ASSESTS)
under Segment of Rs.10.lacs or below and all Written off accounts
To motivate the entire workforce for resolution of NPAs and for recovery in written off accounts an
Incentive Scheme is introduced by the bank. Main feature of the scheme are as under:
1. NAME: Staff Incentive Scheme for NPA Recovery

2. PERIOD: The scheme will be operated up to 31.03.15 and will be extended on yearly
basis keeping in view the NPA portfolio of the Bank. Now extended up to 31.03.16.
3. PARTICIPATION: All staff members at Branches may participate in the Scheme.
Incumbent Incharge will allocate the eligible NPAs/Written off accounts to each
member for recovery.
4. ELIGIBLE ACCOUNTS: NPAs (Doubtful/Loss) with balance outstanding below Rs.
10.00 lacs and all Written-off accounts will be eligible for claiming incentive in case of
recovery.
5. EXCEPTIONS: Recovery in following accounts shall not be eligible for incentive
under this scheme.
a) Accounts where OTS has been approved before 31.03.14 and is under
implementation, in such accounts the amount recovered after 01.04.14 will be
eligible for incentive.
b) Recovery made by adjustment of Subsidy/DICGC/CGTSME claims shall not be
eligible for incentive.
c) The accounts allocated to Recovery Agencies shall not be eligible under the
scheme.
6. RECOVERY ELIGIBLE FOR INCENTIVE:
a) Doubtful/loss Assets: Amount recovered in excess of floor level of 10% (for the
full year) of total outstanding of the concerned branch under the target segment
as on the close of 31.03.14.
b) Written Off Accounts: Amount recovered in excess of floor level of 10% (for the
full year) of total outstanding (kitty available-as per Annexure-IV & V) of the
concerned branch under the target segment as on the close of 31.03.14.
7. INCENTIVES: Each participating member would be eligible for incentive as under:
a) Branch staff would be eligible for incentive as under:-
Doubtful Assets : 4%
Loss/Written Off Accounts : 6%
b) Sharing of incentive amount amongst the Branch will be as under:-
Incumbent Incharge of the Branch : 35%
Officer In Charge of Recovery: : 25%
Remaining Staff equally, who contributed in recovery : 40%
c) In absence of any officer Incharge of Recovery other than Incumbent Incharge:
Incumbent Incharge of the Branch : 50%
Remaining Staff equally, who contributed in recovery :50%
Incentive as above will be permitted by Head Office on the recommendation of

Regional Manager and Incumbent Incharge of the Branch. Incumbent Incharge shall
submit the statement of recovery to RO and RO to Head Office.
Operative Circulars: Loan/NPA circular37/14 dated 26.08.14
119
Space for Amendment:
LEAVE RULES AND JOINING TIME
Kinds of leave - Subject to the provisions of these regulations, an officer or employee may be eligible for
the following kinds of leave, namely, -
(a) Casual Leave,
(b) Privilege Leave,
(c) Sick Leave,
(d) Extra-ordinary Leave,
(e) Special Casual Leave and Special Leave,
(f) Maternity Leave, and
(g) Paternity leave.
1. Authorities empowered to grant leave - The Competent Authority or any other officer
authorized by him in this behalf shall grant any kinds of leave as referred to in regulation 55.
2. Power to refuse leave or recall an officer or employee from leave -
Leave cannot be claimed as a matter of right. When the exigencies of the service of the Bank requires,
the Competent Authority shall, by order in writing, refuse or revoke the leave of any description.
The Competent Authority may, whenever the Bank deems fit to do so, recall the officer or employee
who is on leave to join in his duty in the Bank:
Provided that if the officer or employee is out of headquarter, he shall be eligible to be paid the actual
expenses incurred by him and the members of his family for returning to the headquarter.
3. Place of reporting on return from leave - An officer or employee who is on leave shall, unless
otherwise instructed to the contrary, return for duty to the place where he was posted before
proceeding on leave.
4. Leave not admissible for an officer or employee placed under suspension - No leave shall be
granted to an officer or employee who is under suspension.
5. Casual Leave - (1) An officer or employee shall be eligible for casual leave on full emoluments
for 12 working days in a calendar year:
Provided that not more than four days casual leave may be availed of at any one time :
Provided further that holidays and Sundays may not be combined with such leave in such a manner as to
increase the absence at any one time beyond six days.
(2) Casual leave to an officer or employee during the first calendar year of his service shall be
admissible on a pro-rata basis at the rate of one day for each completed month or part thereof.
(3) (a) Casual leave not availed of in a calendar year may be suffixed or prefixed to sick leave in the
following year in respect of an officer,
(b) Casual leave not availed of in a calendar year may be converted into sick leave on full substantive pay
in respect of employees and such sick leave shall be in addition to the eligible sick leave limits specified
in regulation 62;
(4) Casual leave may not be granted in combination with any other kinds of leave except as
provided under clause (a) of sub-regulation (3), Special Casual leave under regulation 64, Maternity
leave under regulation 65 and Paternity leave under regulation 66.
6. Privilege leave - (1) An officer or employee shall be eligible for privilege leave computed at one day
for every 11 days of service on duty:
120
Provided that no privilege leave shall be availed of before the completion of 11 months of service on
duty at the joining of his service.
(2) The period of privilege leave to which an officer or employee is entitled at any time shall be the
period which he has earned less the period availed of.
(3) An officer or employee on privilege leave shall be entitled to full emoluments for the period of
leave.
(4) Privilege leave may be accumulated upto 31st December, 1989 for an aggregate period upto 180
days and from 1st January 1990, the privilege leave may be accumulated upto not more than 240 days.
(5) An application for privilege leave shall be submitted by an officer or employee one month
before the date from which such leave is required.
(6) The application which does not satisfy the requirement of sub-regulation (5) may be refused
without assigning any reason:
Provided that if the Competent Authority is satisfied that such requirement was not possible, he may, at
his discretion, waive the requirement.
7. Sick Leave and Additional sick leave - (1) The sick leave or medical leave account of every officer
or employee shall be credited with medical leave in advance, in two instalments of fifteen days each on
the first day of January and July of every calendar year.
(2) (a) The leave shall be credited to the said leave account at the rate of 5/2 days for each completed
calendar month of service, which he is likely to render, in the sick leave or medical leave of the calendar
year in which he is appointed,
(b) The credit for the sick leave or medical leave in which an officer or employee is due to retire or resign
from the service shall be allowed at the rate of 5/2 days per completed calendar month up to the date
of retirement or resignation,
(c) When an officer or employee is removed or dismissed from service or dies while in service, credit of
sick leave or medical leave shall be allowed at the rate of 5/2 days per completed calendar month up to
the end of the calendar month preceding the calendar month in which he is removed or dismissed from
service or dies in service.
(d) Where a period of absence or suspension of an officer or employee has been treated as dies non in
a sick leave or medical leave, the credit to be afforded to his sick leave or medical leave account at the
commencement of next sick leave or medical leave shall be reduced by one eighteen of the period of
dies non subject to a maximum of ten days:
Provided that sick leave or medical leave can be accumulated during his entire service subject to the
following conditions, namely -
(i) An officer or employee shall be eligible to receive one months full emoluments during the period of
sick or medical leave:
Provided that if an officer or employee so desires, the Bank may permit him to draw full emoluments in
respect of any portion of sick leave granted to him and the twice the amount of such period on full
emoluments shall be debited against his sick or medical leave account for this purpose.
(ii) The sick or medical leave shall be granted on pro rata basis during the first year of service;
(iii) The sick or medical leave may be availed of only on production of medical certificate issued by a
recognized medical practitioner acceptable to the Bank;
(iv) Any officer or employee desirous of resuming duty on expiry of sick or medical leave shall produce
medical certificate issued by a recognized medical practitioner acceptable to the Bank stating that he is
fit for duty.
EXPLANATION: For the purposes of this regulation,-
Till the 1st day of September, 1987 an officer or employee is eligible for 20 days sick or medical leave for
each completed year of service and such leave can be accumulated upto 180 days.
121
From the 1st day of September, 1987 till October 18, 2005, an officer or employee shall be eligible for 20
days of sick or medical leave for each completed year of service.
From October 19, 2005, an officer or employee shall be eligible for 30 days of sick or medical leave for
each completed year of service subject to a maximum of 18 month during the entire service and such
leave can be accumulated up to a period of 540 days during the entire service and may be availed of
only on production of medical certificate issued by a medical practitioner acceptable to the Bank or at
the Banks discretion nominated by it at its cost.
From October 19, 2005, where an officer or an employee who has completed 24 years of service shall
be eligible for 30 days additional sick leave for each completed year of service subject to a maximum of
90 days.
8. Extraordinary Leave - (1) Extraordinary leave may be granted to an officer or employee when no
other leave is due to him and when having regard to his length of service, sick leave is not considered
justified by the Competent Authority.
(2) The duration of extraordinary leave to be granted to an officer or employee shall not exceed 90 days
on any occasion and 360 days during the entire period of his service:
Provided that in the exceptional circumstances, the Chairman may, with the approval of Board, grant
extraordinary leave upto a total period of 720 days to an officer or employee:
Provided further that in case of chronic sickness of an officer or employee, the Chairman may, with the
approval of the Board grant extraordinary leave in excess of 720 days to him and the Board, while
according such approval, shall record the specific reasons therefor in writing.
(3) Save as otherwise provided in these regulations, the Competent Authority may grant extraordinary
leave in combination with or in continuation of any other kind of leave admissible to the officer or
employee.
(4) No pay and allowances are admissible during the period of extra ordinary leave and the period spent
on such leave shall not count for increment:
Provided that where the Competent Authority is satisfied that sanction of extra ordinary leave was
necessitated on account of illness or any other reason beyond the control of officer or employee, he
may direct that the period of extraordinary leave would count for increment.
9. Special casual leave and special leave - An officer or employee may be granted special casual
leave and special leave for sports, donation of blood, family planning, defending another officer or
employee in an enquiry, or for joining civil defence services or any other purposes as may be decided by
the Board in accordance with the guidelines of the Central Government.
10. Maternity Leave - (1) Leave upto a period of six months at a time may be granted by way of
maternity leave including in respect of post natal period or at the time of miscarriage or abortion or
medical termination of pregnancy, so however, that not more than 12 months of such leave shall be
available during the entire period of service of a female officer or employee.
(2) Maternity leave may be combined with any other kind of leave but any leave applied for in
continuation of the former may be granted only if the request is supported by certificate issued by a
recognized medical practitioner acceptable to the Bank.
122
(3) The Maternity leave may also be granted once during the entire service period to a female officer or
employee who has no living child, for legally adopting a child who is below 1 year of age till the child
reaches the age of 1 year subject to a maximum period of 2 months subject to the following terms and
conditions, namely, -
(a) leave shall be granted for adoption of only one child;
(b) the officer or employee shall adopt a child through the due process of law for the time being in force
and produce the adoption deed to the Bank for sanctioning such leave.
11. Paternity Leave -
(1) The male officer or employee who having less than two surviving children, may be granted
paternity leave for a period of 15 days, during the confinement of his wife for child birth, i.e. upto 15
days before, or up to six months from the date of delivery of the child.
(2) During such period of 15 days, the male officer or employee shall be paid leave salary equal to the
pay drawn immediately before proceeding on leave.
(3) The paternity leave may be combined with leave of any other kind.
(4) The paternity leave shall not be debited against any other leave account of the male officer or
employee.
(5) If paternity leave is not availed of within the period specified above such leave shall be treated as
lapsed.
12. Lapse of leave - All leave shall lapse on the death of an officer or employee or if he ceases to be
in the service of the Bank:
Provided that where an officer or employee dies in service, there shall be payable to his legal
representatives, sums which would have been payable to the officer or employee as if he has availed of
the privilege leave that he had accumulated at the time of his death subject to sub-regulation (4) of
regulation 61.
Provided further that where a staff retires from the service of the Bank, he shall be eligible to be paid a
sum equivalent to the emoluments for the period of privilege leave he had accumulated subject to sub-
regulation (4) of regulation 61:
Provided also that in respect of the employee where his services are terminated owing to retrenchment,
he shall be paid pay and allowances for the period of privilege leave at his credit.
13. Furnishing of leave address to the Bank - An officer or employee who has been sanctioned
leave and leaves, his place of duty shall furnish to the Bank, the address at which he can be contacted,
while out of headquarters.
14. Commencement and Termination of leave - (1) The first day of leave of an officer or employee
is the working day succeeding that upon which he hands over charge.
123
The last day of leave of an officer or employee is the working day preceding that upon which he reports
his return to duty.
15. Sabbatical Leave to the Women employees :
(i) Sabbatical Leave of upto 2 years shall be admissible to women employees during
their entire career;
(ii) Sabbatical Leave shall be without Pay, Salary, Allowances and any consequential
monetary and non-monetary benefits;
(iii) The employee applying for leave should have put in a minimum of 5 years of service.
Sabbatical Leave before completion of 5 years of service shall be sanctioned only in
exceptional circumstances by the authority next above the leave sanctioning
authority;
(iv) The leave shall be taken for a period of atleast 3 months at a time and the leave shall
not be taken more than once in a year;
(v) No increments will be earned during the Sabbatical Leave and the employee will
rejoin at the same stage of pay as was existing at the time of her availing the
Sabbatical Leave;
(vi) Employees on Sabbatical Leave shall not be eligible to participate in any promotion
exercises during the Sabbatical Leave period, even if otherwise eligible;
(vii) Eligible and willing employees can request for Sabbatical Leave for any purpose like
medical grounds, care of family members or children, higher studies, visit spouse etc;
(viii) The employee shall not take up any employment/vocation/business/profession elsewhere
during the Sabbatical Leave.
16. Encashment of Leave

An Officer or Employee resigning after 20 years of Qualifying Service after giving due
notice, will be paid a sum equivalent to the emoluments in respect of privilege leave to
the extent of half of such leave to his credit on the date of cessation of service, subject to
maximum of 120 days. w.e.f 03.08.2015
17. Joining time - (1) An officer or employee shall be eligible for joining time on one occasion to
enable him, -
(a) to join a new post to which he is appointed while on duty in his old post, or
(b) to join a new post on return from leave.
(2) The period of joining time shall be, -

(a) in respect of an officer, a period not exceeding seven days exclusive of the number of days spent on
travel, and
(b) in respect of an employee a period not exceeding six days exclusive of the number of days spent on
travel.
124
(3) During the period spent on joining time, an officer or employee shall be eligible to draw the
emoluments at the place of old or new posting, whichever is less.
(4) In calculating the joining time admissible to an officer or employee, the day on which he is relieved
from his post shall be excluded:
Provided that public holidays following the day of his relief shall not be included in computing the
joining time.
(5) No joining time shall be admissible to an officer or employee if,-

(i) the transfer does not involve a posting to a different place;
(ii) his posting is of temporary nature, irrespective of the fact that the posting is to a place or station
other than the one at which he is permanently posted;
(iii) the transfer is at his own request;
(iv) the transfer is within the same Panchayat or Municipality or Urban Agglomeration or Municipal
Corporation or Town or City.
Operative Circular: Staff regulation, Staff circular 35/15 dated 04.08.15, 42/15 dated
15.09.15
Space for Amendments
HUMAN RESOURCE DEVELOPMENT DIVISION

BUSINESS DEVELOPMENT
EXPENDITURE HEAD Office Asstt./ Office SCALE I SCALE II SCALE III SCALE IV
Attendants
Fixed Medical Aid (Per 2000 5100 5100 5100 6320

annum)(Jan to Dec)
Compensation On 500 / 300 2000 2000 2000 2000
Transfer
Newspaper (Per Month) 120 /100 150 250 250 250
Brief Case (Once In Three NIL 1500 2000 2000 2600
Years)
125
Landline Telephone - - - Max. 500 Max. 500 calls
Charges calls Bimonthly +
Bimonthly + Rent + Taxes
Rent +
Taxes (only
for BMs
Mobile Phone Charges - 1200 1500 1800 1800
(per quarter)
Sumptuary (Per - 4800 5400 7800 9600
annum)(Apr to March)
Financial Aid to the family 80000 / 50000 150000 150000 150000 150000
of employee who dies while
in service of the Bank
(Subject to min. 5 years of service)
Annual Health Check Up 1500 1500 1500 1500 3250
Age(40-45) ONCE
Age (45-50) TWICE
Age (ABOVE 50 YEARS)
EVERY YEAR
DIEM ALLOWANCE/HALTING ALLOWANCE

Column 1 Column 2
Grade / Scale of Metro Cities Major A Area I Other Places
Officers
Officers in 1200 1000 800 700
Scale IV
Scale I, II & 1000 800 700 600
III
Grade Places with Population above 5 Other Places

Population of 12 Lacs + State
Lacs and above Capitals/ Capitals of
Union Territories
Office Assistant 500 375 300
Office Attendant 375 250 185
Major A Class Cities Ahmedabad, Banaglore, Hyderabad
Area I Surat, Lucknow, Kanpur, Pune, Nagpur, Visahapatnam, Patna, Vadodara, Kochi, Indore,
Bhopal, Ludhiana, Coimbatore, Madurai, Varanasi & Agra.
HOTEL EXPENSES:
Maximum Room Tariff Permissible (Excluding Taxes)
126
Eligibility to Stay in Major A Area I Other Places
ITDC Hotels Class Cities
Senior Management - 3* Hotel 4000 2400 2000
Grade Scale IV & V
Middle Management 2* Hotel(Non AC) 2400 1600 1200
Grade Scale II & III
Junior Management 1* Hotel (Non AC) 1600 1200 800
Grade Scale -I
Memento on retirement: Cost of item upto Rs. 5000/-
Silver Jubilee Award Cost of item upto Rs. 4000/-
Funeral expenses - Amount of Rs. 10000/- at the time of death to the family of deceased
employee.
REIMBURSEMENT OF TRAVELLING EXPENSES FOR TRAVEL BY OWN VEHICLE:
( FOR OFFICERS ONLY)
Sr. No. Type of Vehicle Rate per Km. (Rs.)

1 Four Wheeler (1000 CC or more) 9.00
2 Four Wheeler (Less than 1000 cc) 7.00
3 M/ Cycle , Scooter 4.50
Moped 3.00
ENTITLEMENT FOR AVAILING LEAVE FARE CONCESSION:
Cadre wise entitlement is as under:

Cadre Entitlement
Officer Scale IV By AC First Class or By Air (Economy Class)
Officer Scale II, III By 1st Class or AC 2 Tier. He may travel by Air if the
distance to be travelled is more than 1000 kms
Officer Scale - I By 1st class/ or AC 2 Tier.
Office Assistant (Non Subordinate Staff) By mail / Express Train in AC 2- Tier (whichever is
less)
Office Attendants (Subordinate Staff) By Mail / Express Train in AC-3 Tier.
TO ENCASH LEAVE FARE CONCESSION (@ 75% ENCASHMENT)
STAFF CIRCULAR NO. 8/2011 DATED 21.04.2011

ELIGIBLE DESIGNATION ENTITLEMENT KILOMETER BLOCK SPAN
127
(BY MAIL/ RANGE (ONE
EXPRESS WAY)
TRAIN)
OFFICER SCALE IV AC I TIER 5500 ONCE IN FOUR
STAFF YEARS FOUR
SCALE I, II,III AC II TIER 4500 ONCE IN FOUR YEARS
YEARS
CLERICAL (NON 4000 ONCE IN FOUR
SUBORDINATE AC II TIER YEARS FOUR
STAFF) 2000 ONCE IN TWO YEARS
WORKMEN YEARS
STAFF OFFICE 5000 ONCE IN FOUR
ATTENDANT AC III TIER YEARS FOUR
(SUBORDINATE 2500 ONCE IN TWO YEARS
STAFF) YEARS
LIVERIES TO SUBSTAFF:
A) SUMMER: 3 Sets of Terry Cotton once in 2 years. Rs. 404/20 per meter. Stitching charges Rs. 275/-
per set.
B)WINTER 1 Set of woolen Uniform once in 3 years within Rs. 1037/40 + Stitching Charges 1100/-
. HIMACHAL PRADESH GRAMIN BANK HEAD OFFICE JAWAHAR NAGAR MANDI (HP)
CHART OF FINANCIAL & OTHER POWER OF OFFICERS AT BRANCHES AND REGIONAL OFFICES(REVISED)
(BRANCHES) (R.O)
Sr. PARTICULARS REFERENCE SMALL MEDIUM LARGE VERY FOR FOR
LARGE
No. OWN Branches
OFFICE
1 PURCHASE OF SFF / FIXTURES PER YEAR 10,000 15,000 25,000 30,000 30,000 30,000
ITEMS
2 PURCHASE OF BICYLE PER YEAR NIL NIL NIL NIL 3,000 3,000
3 DISPOSAL OF SFF ITEMS
THROUGH SALE (ORIGINAL COST) PER YEAR 1,000 1,500 3,000 3,000 50,000 50,000
4 WRITE OFF OLD/OBSOLETE SFF
(ACTUAL/ORIGINAL COST) PER YEAR 2,000 5,000 10,000 10,000 15,000 15,000
5 REPAIR OF SFF ITEMS & BICYCLE PER YEAR 5,000 10,000 15,000 20,000 10,000 10,000
6 REPAIR & SERVICING INCLUDING

REPLACEMENT OF TYRES,
BATTERIES, & OTHER PARTS ETC. PER YEAR NIL NIL NIL NIL 20,000 NIL
OF BANK VEHICLE.
7 DIESEL/PETROL/OIL PER YEAR NIL NIL NIL NIL FULL NIL
128
8 TELEPHONE CONNECTION NIL NIL NIL NIL ONE
LINE PER ONE LINE
OFFICE
9 STATIONERY LOCALLY PER QTR. 1,000 1,500 2,000 2,000 10,000 5,000
PURCHASED Per Per Annum
Annum
10 MISCELLANEOUS
EXPENDITURE PER QTR. 1,500 2,000 2,500 3,000 2,500 3,000
11 COMPUTOR DATA PROCESSING/
MASTER DATA CREATION/
SIGNATURE SCANNING YEARLY NIL NIL NIL NIL Nil 2,000
12 PURCHASE OF DATA PROCESSING
STATIONERY, MEDIA CARD,
CONSUMABLES LIKE TAPES,
FLOPPIES,PRINTERS,RIBBONS,
PRINT HEADS,CARTRIDGE,DATA
CABLES,BATERIES OF UPA/POWER PER QTR. 1,500 2,000 3,000 3,000 2,000 Nil
PACKS, ETC.
13 COMPUTER PAPER PER QTR. 1,000 1,500 2,500 2,500 2,000 Nil
15 PURCHASE OF LIBRARY BOOKS PER YEAR NIL NIL NIL NIL 1,000 NIL
16 WAIVEMENT OF SERVICE
CHARGES/COLLECTION CHARGES PER NIL NIL NIL NIL NIL 500
REFERENCE
17 WATER,ELECTRICTY,HOUSE TAX,
& OFFICE TELEPHONE PER MONTH ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL
18 BUSINESS DEVELOPMENT/MEETING/
WORKSHOP/SEMINAR/CREDIT PER QTR. NIL NIL NIL NIL 3,000 3,000
CAMP
ETC.
OTHER POWERS
SETTLEMENT OF DEPOSITS/LOKER, ETC. /DEATH CLAIM CASES
WHERE TITLE IS LEGALLY PER CLAIM 1,00,000 2,00,000 3,00,000 3,00,000 5,00,000
ESTABLISHED PER CLAIM
WHERE TITLE IS NOT LEGALLY
ESTABLISHED PER CLAIM 50,000 1,00,000 2,00,000 2,00,000 5,00,000
PER CLAIM
129
REG: RISK BASED INTERNAL AUDIT OF BRANCHES (RBIA)
In terms of RBI guidelines, Bank has completely switched over to Risk Based Internal Audit (RBIA)
System as per instructions received from Sponsor Bank, PSLB Division ,RRB Cell. Our Board of Directors
have accorded their approval to switch over to effect from 1st January, 2013 dispensing with the
erstwhile Score Based Rating System (SBRS)
Main objectives of Risk Based Internal Audit are to achieve the following:
i. Providing an assurance to the management about efficiency and efficacy of Risk Management
System of the Bank
ii. Enhancing the role of audit in identification of potential risks, suggesting preventive measures and
mitigating various existing risks
iii. An independent risk assessment for prioritizing the audit areas and allocation of audit resources
The Risk based Internal Audit System will assess the risk in Business Activities as well as the Control
Activities of a branch. The risk in each activity would be under 3 risk categories viz. Low, Medium & High
and the overall risk will be arrived at by combination of Business & Control Risks through a 3 X 3 Matrix.
The Overall assessment would be under five risk categories viz. Low Risk, Medium Risk, High
Risk, Very High Risk and Extremely High Risk
RBIA FRAMEWORK
Bank has successfully implemented Risk Based Internal Audit at the branches viz. On-Site audit and Off-
Site audit. The On-Site audit is a comprehensive audit of a branch and the Risk exposure of the branch
is assessed on the basis of this audit conducted by Regular Auditor/Concurrent Auditor. The Off-Site
audit is undertaken at all Non Concurrent Branches by the Zonal Audit Offices on the basis of data
submitted by these non-concurrent audit branches through respective Circle Offices. The Audit plan for
off-site audit is prepared annually subject to review during the year.
ON-SITE AUDIT SYSTEM
1. BRANCH PROFILE
First step in RBIA is to prepare Branch Profile of each branch (on the format as per latest version &
available on e-circular site). This format is designed to capture information and data on various vital
information of the Branch.
1.1 In Branch Profile, Auditor has to capture information and data for latest completed two financial
years in case of Concurrent Audit as well as Regular Audit.
1.2 Further, in addition to the above, in case of Concurrent Audit, the information and data is to
be captured for latest completed quarter/half year and previous quarter/half year and in case
of Regular Audit, the information and data is to be captured for latest completed quarter and
its corresponding quarter of the previous year.
130
2. ON-SITE AUDIT FORMAT
In On-Site audit, the auditor is to prepare report under two heads namely Business Risk and Control Risk
(on the formats as per the latest version & available on e-circular site). Both Business and Control
risks have been divided into a number of sub-parameters. These sub-parameters, as per their
significance, have been assigned risk weights.
2.1 BUSINESS RISK
The business risk is to be assessed under three Broad Risk Parameters. These areas along with
maximum score assigned to each of them (for non specialized Branches) are as under:
1. Credit Risk -- 520
2. Operational Risk -- 280
3. Earnings Risk -- 200
Total -- 1000
There are 10 risk parameters under Credit Risk, 10 in Operational Risk and 14 in Earning Risk. The risk
score is to be assigned to each risk parameter according to the level of compliance, achievement etc.
under each parameter. On the basis of the total risk score, level of Business Risk will be decided as per
the following table:
Business Risk Categories:
As per 3x3 Matrix
Up to 30% Score Low risk
> 30-60% Score Medium risk
> 60% Score High risk
2.2 CONTROL RISK
1. The Control risk is to be assessed under three broad Functional Risk Areas. These areas, along
with maximum score assigned to each of them (for non- specialized Branches), are as under:
1. Business/Operations Management 650
2. Compliance 200
3. Branch Management. 150
Total 1000
2. The Business/Operations Management is further sub-divided into 3 operational areas namely:

1. Credit Functions 300
2. Non-Credit Functions 250
3. Computer Functions 100
Total 650
Each of above functional areas are further sub-divided into Major Heads (viz. Credit Functions
with 11 major heads, Non-Credit Functions with 16 major heads & Computer Functions with 5
major heads) and under each major head there are several risk parameters (e.g. the Head
Exercise of Loaning Powers has 6 micro risk sub- parameters).
3. Compliance parameter has 4 major heads.
131
1) Status of Audit Reports 100
2) Crucial Returns 40
3) Communication & Response 40
4) Regulatory Compliance 20
200
4. The parameter Branch Management is further divided into 2 functional areas namely;
a) General 80
b) Security 70
Total 150
Both of these functional areas are divided into Major Heads (viz. General has 6 major heads
and like-wise Security has also 4 major heads) and under each major head there are several
risk sub-parameters.
5. The risk, under all sub-parameters as well as the main parameters, should be assigned in 3 Risk
categories namely Low, Medium & High on the basis of total risk score & level of Control Risk as per
the following table:
Control Risk Categories:
As per 3x3 Matrix
Up to 30% Score Low risk
> 30-50% Score Medium risk
> 50% Score High risk
2.3 OVERALL RISK
1. On the basis of summary score-sheets of Business Risk and Control Risk, Risk category of the
branch under Business & Control Risk is required to be submitted by the Auditor as under:-
Business Risk Control Risk
Maximum Marks 1000 1000
Applicable Marks
Marks Obtained
Risk score (Marks Obtained as %age of
Applicable Marks)
Risk Category (Low/Medium/High)
2. Risk Matrix: Overall Risk Category of Branch is to be arrived through combination of Business
Risk & Control Risk as per the following Matrix
(3 X 3 Matrix):
Business H H VH EH
Risk
M M H VH
132
L L M H
L M H
CONTROL RISK
ZTL ITEMS: In the revised system some irregularities which are treated as Very serious in SBRS nnow
classified as ZERO TOLRANCE LEVEL and separate deviation score is marked for the same and
rating will be decided on the basis of Score.
FSI ITEMS: Some irregularities which are treated as Serious in nature under SBRS now classified as
FRAUD SENSTIVE INDEX and separate deviation score is marked for the same and rating will be
decided on the basis of Score.
FSI INDEX REPORT: On the basis of ZTL items and FSI items, FSI Index Report prepared and Overall
FSI Category decided on the basis of score, as Very High, High Medium or Low.
6.3 Frequency of Audit
The frequency of audit varies between 618 months as per the following table depending on the last
On-site Audit assessment and the direction of risk assessed through Off-site Audit. The audit will be
conducted more frequently for extremely high/very high risk branches than for medium/ low risk
branches.
Audit Schedule
Overall Risk Category Direction Frequency of
Audit (months)
Extremely High/Very Increasing/ Stable/ Decreasing 6 - 9 - 12

High/High
Medium Increasing/ Stable/ Decreasing 9 - 12 -15
Low Increasing/ Stable/ Decreasing 12-15 - 18
PERIODICITY FIXED FOR CLOSURE OF INSPECTIN REPORT
Scale III Branches : 60 days
Scale II Branches : 45 days
Scale I Branch : 30 days
FSI Items : 20 days
ZTL Items : 10 days
____________________________________________________________________________________
_
133
Operative circulars: Inspection Circular no. 28/2012 dated 19.11.2012, No.4/2015 dated 25.07.2015
and Circular no. 06/2015 dated 28th July, 2015.
REG: Daily Monitoring System (DMS) substitution of Morning

Checking system with checking of System Generated Control Reports
Detail guidelines for implementation of Daily Monitoring System, wherein checking of essential Control
Reports, to
be implemented in the branches, were circulated vide Inspection and Audit Division. However, certain
instances have been reported through inspection/visit reports that these guidelines are
not being followed in letter and spirit.
The subject instructions are reiterated for the information and strict compliance by all concerned:
For meticulous implementation of Daily Monitoring system, it is mandatory for the branches
to generate
and monitor/check following Control Returns on daily basis:
Sr. Reports Gist of Reports
No.
1 Exceptional Transaction Report This report shows all the transactions that have been
(EXCPRPT) passed even though exceptions on account of
deviation from the prescribed
parameters/norms/guidelines have been raised by the CBS
System
2 Temporary overdrafts Report This report shows the entire temporary over draft allowed
(TODRP) in various accounts in the CBS system
3 Outstanding Proxy Posted In order to enable the Data Base Administrator to continue
Transactions (IOT A/c No. with his
3171116 day-end work, a feature "Proxy Posting" has been
provided in FINACLE. Proxy posting process will post the
un-posted/part posted transaction to an identified different
account, and if the transaction is a debit transaction for
customer's accounts that transaction will also place a lien
on the original customer account. The next day, the
Section Officer can look into those transaction and reverse
the proxy
4 Long book of Incumbent This report mainly shows transactions related
(RRB-17 of RPT-1) to Income, Expenditure, Cash Credit, Suspense,
Sundries & Inoperative accounts.
5 GL Balance Report RRBRPT 1 It is to monitor movement of consolidated transaction in
various GL
Heads
6 Transactions entered/posted The transaction operation in CBS is based on "Maker &
by same employee (RPT-49 & Checker" concept. The report provides daily position
95 of RPT-1) of such transactions which have been created and
passed by single employee user-ID.
7 UPM Changes Reports (UPR) This report provides all the detail of changes made in the
profile of
Users of the branch.
8 Report on Intersol TOD The report provides a consolidated view of TOD

Granted in CC/OD/SB/CA permitted in CC/OD/SB/CA accounts by other SOLs.
accounts (RRBRPT 26)
134
9 Report of Manual Transaction The report generates a list of manually created
in System only Account transactions in the System Only Accounts.
(RRBRPT 27)
10 Report on Dormant Accounts The report has been customized to check the list
credited through NEFT on a of Dormant Accounts where NEFT credit has gone
given date through Straight Through Processing (STP) system
11 Morning Checking Report To check daily Transaction created in FINACLE
RRBRPT 24
All the above reports shall have to be monitored/checked by the Incumbent

Incharge on daily Basis. The tallying of voucher would continue as per the existing
guidelines, as a separate activity. The duties of custodian of vouchers to ensure tallying
of vouchers should be clearly stipulated by the Incumbent Incharge of the branches
through issue of Office Order.
The branches will have to maintain complete record of above activities for checking by
Senior
Official visiting the branch and for the purpose of audit and inspection. In case
of non
compliance of the duties by Maker and Checker staff accountability of maker/checker
will be
fixed as per existing guidelines.
135
fgekpy iznsk xzkeh.k cSad
Introduction Program on Finacle
General Information:
Finacle Home page address : https://10.12.2.35:8030/hpgb.html
Finacle network address for HPGB :
https://10.12.2.35:8030/HPGBFIN/HPGBFIN.html
Web site of HPGB : www. himachalgraminbank.org
Downloads availabe on Home page : JAVA Policy.
Hot Keys:
F1 Field level help F8 Copy record
F2 List level help F9 To view sign Photo with cursor on A/c No.
F3 To previous Page F10 To COMMIT & SAVE finally
F4 To Next mendatory field F11 To next field on same page
F5 Background Menu F12 Previous block / page
F6 To Next Page
Ctrl + E To Explode
Ctrl + F To clear field
Ctrl + D/U Page down/up
Ctrl + X Current date / Max amount.
Shift + F4 To select
Reports Available:
Menu option : RPT1 (for 99 reports)
RRBRPT (for 46 reports)
RAUDIT (for 33 reports)
NPARPT1
NPARPT2
NEFTPNB
PSP (for statement of account/ ledger)
ACLI (Account ledger inquiry)
ACLPOA (for Office A/c Ladger print)
ACLPCA (For customer A/c Ladger Print)
BR ( for Balance report)
ACSP ( for Account selection printing)
136
LAOPI (for loan overdue position)
ISR/ISRA (Inventory related reports)
TDSIP (TDS related repots )
LAOPI (Overdue Statement)
LLIR (Loan ledger inquiry )
Custmor Master:
CUMM -Customer master maintenance {Function A- Add C- Copy
X -Cancel
D- Suspend U- Unsuspend I Inquiry
V- Verify L List M Modify }
For institutional A/c fill INSTI in occupation .
For JLG A/c Fill 017 in Constitution
Transaction Maintenance:
Normal transactions : TM
KCC transactions : TMKCC
Subsidy related tran : TMPS
Tran template : TTM
Bulk Upload : TTUM
Proxy reversal/adjust : SPTM
Details in normal transactions:

A- Additional detail Y- Proxy post tran
B- Show component of balance U- Show total of DR / CR
D- Delete part tran W- show lien amt & date
E- Enter entire part tran O- Who created / verified tran
I- Inquire on all part tran L- List part tran
M- Modify part tran I- Misc details.
N- Instant TOD detail R- Reset Unverified Part Tran.
Account Opening:
Any type (SF/FD/RD /TL / CC / OD) :

Menu (A/c Opening) : OAAC {function O-open C-Copy}
OAACAU {V-verify X-Cancel M-
Modify}
For Subsidy related A/cs: OLAPS [Authorization- OLAPS (V)]
FD Renewal : TDREN
EXTENTION OF FD: TDEXT
Details in Account Opening :

SB/CA FD/RD CC/OD TL/DL
Mandatory: G G G G (General details)
S S S S (Scheme details)
137
F H H {F-Flow & H-Limit detail)
I (Interest details)
V {MIS details}
E ( Repayment details)
U (*Details if transfer in
a/c)
Optional: N N N N (Nomination details)
A A A A (Related party details )
Account Closure:
Any type (SF/FD/RD /TL / CC / OD) :
Menu : CAAC {function Z- Close}
CAACAU {V-verify X-Cancel M-Modify}
Closure of A/c Charges collection CACC Z-Close V Verify X - Cancel

Updation of closure date in TD TDBATCH
Important points for A/c closure :

- Unused cheques be destroyed {CHBM or CHBD}
- A/c should not be Frozen {AFSM}
- SI should be deleted. {SIM}
- Verify Sign/ Photo, if pending {IMGMNT}
- Vacate lien, if any {ALM}
- Apply A/c closure / Charges {CACC -Z}
- Delete all securities in Loans {SRM }
- Apply Interest {INTRUN or CACC}
- Make A/c balance Zero { through TM}
Term Deposit:
Scheme codes For Public For Staff
Multi Benefit FD FDMB FDMBS
Ordinary FD FDOR FDORS
Special FD (M) FSPM
Special FD (Q) FSPQ
Anupam FD FDANU
Term deposit Renewal : TDREN (R) [Authorization TDREN (V) ]

Interest Run for single/ multiple A/cs : INTRUN /ACINT
TDS calculation : TDSCALC (view all 4 reports through PR)
Marking 15H : CUMM -M (on 4th page fill details F4 -F10)
CUMM -V (for verification visit all pages of G details)
TDS Related:
Inquire TDS : TDSIP ( option No. 5 to view the A/c where TDS is deducted)
21 No. Reprt in RRBRPT.
Refund of TDS : RFTDS {Fill report to-BM, Sol ID, Refund Cust ID,
138
Closed A/c N (if not closed or renewed), tran type
C-cash, T for transfer}
Sel- By default Y ( if customer wishes to get
refund of this FDR retain Y else make it N)
Fill refund amt, Refund Acct No: where TDS
refund is to be credited F-10
TDS Remittance : RMTDS

TDS Exemption : CUMM Modify 3rd page of G detail in CUMM
(enter examption date & PAN No. )
& ensure that TAX SLAB TDSPNis
automatically replaced to TDSGE BY SYSTEM
Inventory Maintenance:
Menu : IMC (For Cheque book, Cash order & TD etc)
Inventory location: ZZ / EXT- DL / DL (External to double lock)
DL / DL - EM / No (Double lock to employee)
DI/ DI - Destroyed location
IMC - for handing over and taking back the charge of inventory from DL/EM as well
as EM to EM ( employee to employee)
ISI - I- inquire about inventory on user location
S- Split of inventory
M- Merge of inventory
ICHB - Issue of cheque book { ICHBAU- Authorization}

CHBM - Inquire, Enter acknowledgement, destroy & caution.{CHBMAU for
Authorization}
CHBIR- Cheque Book issue Register.
SPP - Stop payment {SPPAU Stop payment Authorization}
DDPRNT or
DDPALL - (For Cash order / DD printing ) Enter DD No; & date F4 -F10.
Draft function:
DD Cancelation : DDC
Issue duplicate DD: DDD
DD credit inquiry: DDIC
DD debit inquiry: DDID
Specific DD inquiry: DDIIP
DD issue Report: DDIR
DD revalidation : DDSM
LOST MARKED DLOST
REVERT LOST MARKED DDREVERT
Procedure for taking back up of report in text form: (PTW)
139
Open I Link web.
Make DBR folder in C drive
Invoke PR menu.
Select report with cursor > pointing on desired report and press CTRL & E
Click on the action button text dump .
Copy report name after / and upto extention . rpt
Invoke Menu PTW
Write t in yellow colored message bar & press F 4
Press CTRL & V to paste the report name copied earlier. & press F4
Give path C:\DBR in yellow colored message bar & press F 10.
The selected report will be saved in DBR folder of C drive.
Signature Scanning:
Scan signature/ Photo through SIGNCAP

Sign/Photo file upload Menu: LDIMG {by DB user}
Sign/ Phot verification IMGMNT {multiple verification through SIGVER}
For deletion IMGMNT -D And then verify from V
For Mass verification SIGVER
Day Begin:
(DB user) OCST (open Cash Transactions)
OXFT (Open transfer transactions)
Day End:
(DB User) -All FTI should be verified.
-SOLVAL (Option 1, 3 & 5 should be blank)
(Option 2 should be balanced) & Option 10 all clearing zones be closed
(Option 11,12,16.17 & 22 should be NIL)
-ABH Check SOLVAL for transactions & PR for any other report.
-CTM Holiday marking / check for next working day
-SOLSTAT (For checking status of SOL)
ISOLOP Completed - means DAY BEGIN is over
ABH Completed -means After Business Hour is completed
CSOLOP Completed -means DAY END is over
-SOLEOD Menu for Day END i.e. Close of Business.
Loan & Advances :

Transfer of intt(simple) to principal: LAXFRINT (in casse of edu loan must do compunding of
interest & Rephasement through ACM.)
140
Rephasement of loan : REPHASE I- (to reschedule the instalments for EIDMEM type
a/cs
ACM (M) E details for PRDEM types a/cs.
Adding/Modifying limit: ACLHM Function (M) Make superseed -Y

(System allows enhancement if default value is retained as 999)
D to change DP indicator & H details.
For marking BC letter date: ACM (M) [changes BC date & S details]
Customer A/c maintenance- I-inquire, M-modift & X
cancel
For changing Interest rate: INTTM (M) [changes I details & interst rate code] V-Verify
To attach Securities : SRM (While creating SRM after every option use A F4 to shift
over to next option.)
To change margin: SRM (M)
Modification of existing A/c:` ACM
Partitioned A/c Inquiry(simple intt) PHINQ
Marking an A/c as NPA MEAC
Transfer of A/c to PA MAPD
Advance interest recovery in

Education loan ADINTREC (& make voucher through TM in 5711407
Transfer of interest liability

(In simple intt account) LAXFRINT. ( must do rephasement in case of eduction loan)
BILLS MENU
Bills Maintenance BM
Bill inquiry BI & BRCR
Forwarding schedule BCSO
NPA ( NON PERFORMIN ASSET ACCOUNTS )
TO mark A/C as NPA Or Reverse : MEAC

Main classification :
001 performing asset
002Non performin asset
Sub classification :
141
01- Standard asset
02- Sub standard asset
03- Doubtful asset
04- Loss asset
INCOME DERECOGNITION OF NPA A/C.
After marking NPA Use option TM to de-recognise the income in the respective A/C.
CR. A/C (sol-id)3181501-sundries provision NPA.
The credit transation should be value dated with the original date of income de-recognition.
While entring the Cr. Transation additional detail should be enter must.
In addition detail enter the A/c No. of borrower in which the income has been de-recognise
Reports for NPA:

1) NPARPT1
2) NPARPT2
Various Display / Print Menu option:

Account Ledger Inquiry ACLI,ACLPCA
Customer selection criteria based CUS
Account criteria based selection ACS,ACSP
OTHER IMPORTANT MENU :
Change G.L HEAD CODE: TACBSH

TRANSFER A/C TO OTHER SOL : ACXFRSOL
CHANGE SCHEME CODE : ACXFRSC
CALCULATE M.V OF
TERM DEPOSIT : DEPINT
CALCULATION OF EMI: LAMOD
LIST OF JOINT A/C HOLDER JT HOLDRE
CHEQUE BOOK ISSUE REGISTER: CHBIR
INQUIRE A/C NO. FOR A CHEQUE: INQACHQ
TO CHANGE A/C TITLE/NAME: AALM (if Name differ in cust_id and account)
TO CHANGE CUST_ID : CCA (If wrong cust_id entered during opening of A/c)
Inoprative to Oprative Transfer: OPACTF
NEFT
Menu Option: HRTGS
FUNCTION: A Add.
Tran type: Transfer
Paysys ID: NEFT
142
Message Type: N06 Enter accept 2nd page
Fill relevant Debit detail. 3rd page
Fill relevant beneficiary bank and customer detail.
(All field with * are mandatory)
(Use IFSCI Menu option to know Bank Code and detail)
143

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fgekpy iznsk xzkeh.

THREE DAYS ON LOCATION TRAINING PROGRAM

(02.02.2016 to 04.02.2016) AT HOTEL RIVER BANK MANDI H.P.

Date Session Topic Facilitator

PROCEDURAL GUIDELINES FOR AGRICULTURAL CREDIT.

Processing the applications for agricultural credit.

Assessment of Technical feasibility and economic viability.

Broad parameters for Expenditure/Income calculation are as under: -

Expenditure on productive activities.

Land availability and cropping pattern.

Extent of Loan Time Schedule

PRE-SANCTION APPRAISAL: The following aspects should be looked into:

Integrity/Experience of the applicant should be judged.

(a) For Crop Production: Nil

(A) Production Credit/Investment Credit:

(i) Upto Rs.1, 00,000/-

(B) Under the Scheme of Agri-Clinics and Agri-Business Centres:

(i) Upto Rs.5 lakh:

. CONFIDENTIAL REPORT (CR) ON BORROWER(S) AND GUARANTOR(S):

(i) For loans NO CR to be collected. However information furnished by the

S. No. Particulars of the Form

I. Short term credit:

RULE BASE LENDING MODEL (RBLM)

No Dues Certificate/Affidavit is not to be obtained for agricultural loans up to

OBTAINING OF NO OBJECTION CERTIFICATE FROM THE CO-SHARERS OF

RENEWAL OF SHORT-TERM LIMIT:

Operative Circulars: Loan circular 21/15 dated 22.04.15

KISHAN CREDIT CARD SCHEME

I) Crop Loan Component

A 1st Year Assessment

under bank's usual terms & Conditions.

Capital Subsidy: Capital Subsidy has been discontinued under NRLM.

SECURITY AND MARGIN:

SCHEME FOR FINANCING JOINT LIABILITY GROUPS

SCHEME FOR FINANCING JOINT LIABILITY GROUPS OF FARM SECTOR.

Individuals, Business Facilitators, NGOs, Farmers Clubs, Farmers Associations,

Branches can finance JLGs by adopting any of two models.

MODEL A - FINANCING INDIVIDUALS IN THE JOINT LIABILITY GROUP (JLG):

HOUSING LOAN SCHEME PUBLIC

For purchase of land/plot/house/flat, the loan amount will be paid lump

Up Front Fees/Documentation Charges: As advised by H.O. Time to time.

RATE OF INTEREST: As advised by H.O. time to time.

Operative Circular: Loan Circular No. 42/2014 dated 23.09.2014

houses which are under construction

Rate of Interest: As advised by H.O. time to time.

NMS/I Max. Permissible deductions of NMS/I

SCHEME FOR FINANCING CAR TO PUBLIC

ELIGIBILITY FOR LOAN

For individuals/Proprietorship concerns:

For New Car/Van/Jeep/MUV/SUV: 84 equated monthly installments

NMS/I Max. Permissible deductions of NMS/I

Repayment to be ensured within 65 years of age of the borrower relaxable up to 70 years by

GUARANTEE /COLLATERAL SECURITY:

Third part guarantee/collateral Security is waived in following cases:

a) Application cum appraisal / sanction b) Letter of Hypothecation c) Proforma Invoice

RATE OF INTEREST: As advised by H.O. time to time.

FINANCE AGAINST MORTGAGE OF IMMOVABLE PROPERTY

FOR PERSONAL NEEDS: FOR BUSINESS NEEDS:

Minimum: Rs 1.00 lac > Minimum : Rs. 05.00 lac

DOCUMENTATION: As given in Loans and Advances circular No. 43/2014 dated

PERSONAL LOAN SCHEME FOR PUBLIC/LIC AGENT

AMOUNT OF LOAN and MINIMUM NET MONTHLY INCOME:

GENERAL TERMS & CONDITIONS:

. PERSONAL LOAN SCHEME FOR PENSIONERS