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    Customers complaint pretaing to baroda connect & atm  cum debit card Customers complaint pretaing to baroda connect & atm cum debit card Document Transcript

    • 1
    • SUMMER INTERNSHIP PROGRAM – 2010 A REPORT ON Customer’s complaints pertaining to Baroda connect and ATM-cum debit card SUBMITTED BY: MOHD.ARISH PGDM BATCH 2009-2011 ROLL NO. 40118 2
    • Table of Content: S.No Particulars 1 Executive Summary 2 Preface 3 Certificate of Authenticity 4 Acknowledgement 5 Objective 6 Data Collection 7 Research Methodology and Data base 8 Introduction of the Company 8.1 Bank of Baroda at Civil Lines Allahabad 8.2 Heritage & Ethics of Bank of Baroda 8.3 International Presences 8.4 BOB Mission 8.5 History of the Company 8.6 Management (Board of Director) 9 Services at BOB 10 Subsidiaries of BOB 11 Strategic Initiative 2009 12 Job Done in BOB 13 E-Banking Product of BOB 14 Advantage of E-Banking 15 Definitions of ATM 15.1 Eligibility of ATM Debit Card 15.1(a) ATM Debit Card Can not be Issued 15.2 The Indian ATM Industry 15.3 ATM Networks 15.4 Inter Connectivity of ATM Networks 15.5 BOB Debit Card 15.5.1 Meaning of BOB Debit Card 15.5.1(a) Activation 15.5.1(b) Obligation of Card Holder‘s 15.5.2 Features of International Debit Card 15.5.3 ATM Usage 15.5.4 Merchant Establishment Usage 15.5.5 International Usage 3
    • 15.5.6 Fees 15.5.7 Lost or Stolen Card 15.5.8 Disclosure of Information 15.5.9 Insurance 15.5.10 Statements & Records 15.5.11 Disputes 15.5.12 General 15.5.13 Limitation of Bank‘s Liability 15.5.14 Termination 15.6 Advantage of ATM Debit Card 15.7 Revised Fees Structure for ATM 15.8 ATM Operational Issue 16 Material Consumer Satisfaction Level 16.1 Fees Charged 16.2 Problem faced 16.3 Post Purchase Behavior 17 Overall Material Customer Satisfaction level 18 Abstract Customer Satisfaction Level 18.1 Factor Affecting Choice of ATM 18.2 ATM is most Often Used 19 Introduction to Baroda Connect 19(a) Fund Transfer Limit 19(b) Facilities from Baroda Connect 19.1 Baroda Connect Services Offered 19.2 Advances of Baroda Connect 19.3 Brief about Longing in 19.4 How to use the Facility 19.5 Brief about Password 19.5.1 Security of Password 19.5.2 Phishing 19.5.3 Other Important Security Tips 19.6 Charges 19.7 Issues Impacting E-Banking Services 19.7.1 E-Banking Risks 19.7.2 Operational/technological Risks 19.7.3 Transactional or Operational Risks 19.7.4 Credit Risks 19.7.5 Market Risks 19.7.6 Compliance or Legal Risks 19.7.7 Strategic Risks 4
    • 19.7.8 Reputation Risks 20 10 Tips for Safe Online Banking 21 Phone Banking 22 Baroda e Tax 23 Pay UP Commercial Tax 24 Baroda e Trading 25 Baroda Rapid Fund2India 26 Baroda Remit Xpress 27 Western Union Money transfer 28 Online RTGS/ NEFT 29 Assets 29.1 Non Performing Assets 30 Liabilities 30.1 Capital 30.2 Reserve & Surplus 30.3 Deposits 30.4 Borrowings 31 Ratio Analysis 31.1 Profitability Ratio 31.2 Efficiency Ratio 31.3 Assets Quality Ratio 32 Performance Highlights 33 Findings & Suggestion 34 Conclusion 35 Bibliography 5
    • 1 Executive Summary This project is intended to help those people who want to study the solving the customer complaints regarding Baroda Connect and Atm- cum Debit card and their implications Bank of Baroda. In this project I have tried to give some recommendation best of my knowledge so I have tried to cover almost all aspect of Bank of Baroda. In this project am using BOB as the abbreviation of BANK OF BARODA. In this project I have studied the following 1. What is a debit card? 2. What is Bank of Baroda‘s Debit Card. 3. The difference between a Debit Card and a Credit Card. 4. The facilities available at ATMs 5. How to solve the customer‘s complaint Bob Debit Card. 6. What is the proceeder to issue the New Card? 7. Customer‘s withdrawal the money from Atm but the customer hasn‘t received the money and the amount is debited from the customer‘s A/C. 8. What can be done by customer if the Card is lost? 9. Net Profit of BOB in different years from 2007 to 2009 10. Different financial Indicator of BOB in different years from 2007 to 2009 11. And many more 6
    • 2 Preface Summer project is one of the essential parts towards the partial fulfillment of the requirement of two year full time PGDM programme. In this line I had an opportunity to undergo practical training of two months in Bank of Baroda which is a financial and banking Industry. This project was undertaken to study vital aspect of Atm & Net banking Sercular of the company with physical verification and verification of the serculars. This project is divided in two parts. First I will discuss how I have studied the complaints of Atm & Net banking and secondly I will discuss how I have investigated and verified the financial ratio of the company. I visited the different BOB Atm and collect all the information through the people who use the Atm. Atm machine is working properly or not, People inserted card properly, and cheack the collect cash from customer is to be same at the time of widthdrawal by the customer. 7
    • 3 Certificate of Authenticity This is certify that the project work was done on “Customer‟s complaints pertaining to technology such as Baroda Connect and ATM- cum Debit Card including short comings in the present system and strategy for removing the same and resolving the complaints expeditiously ‟‟ submitted to Accman Institute of Management, Greater Noida is in partial fulfillment the requirement for the award of Post Graduate diploma in Management, is a bonafide `work carried out by me at „Bank of Baroda Civil Lines Allahabad‟. I declare that the form and the content of the above mentioned project are original and have not been submitted in part or full, for any other degree or diploma of this or any other Organization/ Institute/ University. Mohd.Arish PGDM 2009-11 Roll- 40118 Section- B 8
    • 4 ACKNOWLEDGEMENT Our prestigious organization Accman Institute of Management gave me a great opportunity to learn and experience the corporate world. The summer training programme was great experience for me. This project is the result of time, efforts and knowledge contributed by various members of the Organization .I pursued my summer training from Bank of Baroda which is Financial and banking Industry and I would like to extend my sincere gratitude to Mr. S.Ghatak (Dy. Regional Manager) to give me a valuable opportunity to work with such a renowned organization. I would like to extend my sincere thanks to Mr. Dinesh Kumar (Sr. HR. Manager Allahabad) and Mr. H.S.Pandey (Sr. Branch Manager) for assigning me a project on“Customer‟s complaints pertaining to technology such as Baroda Connect and ATM- cum Debit Card including short comings in the present system and strategy for removing the same and resolving the complaints expeditiously ‟‟of Bank of Baroda. They have been a source of guide and motivation for the completion of project. I would like to give credit for my successful completion of project to: Mr. Vishnu kumar (Joint Manager) Mr. Rajesh Mahrotra (Sr. Officer) Mr. Om Prakash (Branch Manager) Mr. R.P.Yadau () Mr. R.K.Verma (Officer) Mr. GopalJee Prasad (Officer) Mrs. VandanaJha (Officer) Miss Seema (Officer) 9
    • Who were always available for my support and important guidance. They were source of Motivation and guidance for me. I sincerely thank for the help provided by my institute ―Accman Institute of Management‖ which provided me necessary materials for completion of this project. I am also thankful to our sincere mentor in the college to Prof. S.C.Ghosh (Chief CRIC.) Prof. Dinesh Singh. (Finance Professor) Finally I am thankful to other members of my Organization and friends who supported me a lot and without their help this project would not have been completed. 10
    • 5 OBJECTIVE Identify the risks and risk management practices associated with e-banking activities. Provide standardized guidance to examiners on e-banking reviews. This study has been developed for those of you who are keen to acquiresome basic but key information about Banking industry as an initial step towardsbecoming a more informed individual. I hope this module will act as a meansof satisfying some of your initial queries on this industry. The paper aims to examine the scenario of ATM in banks. In this broader framework, an attempt is made to achieve the following specific objectives:  To analyze the present ATM facilities  To examine the factors affecting the choice of ATM.  To examine the impact of ATM on customer satisfaction by appraising the problems faced by the customers.  To analyze the post purchase behavior of customers regarding the different banks under study. 11
    • 6 DATA COLLECTION Primary data has been collected through questionnaire. A sample size of 100 respondents ―Impact of ATM on customer satisfaction‖ focus that customer satisfaction is one of the major factors measuring the performance of the banks. This paper examines the customer satisfaction level in the three banks under study with special reference to problems faced, responses about the fee charged and post purchase behavior of the consumers after using ATM. The paper also examines the relationship between various ATM facilities, factors affecting the choice of ATM and its interplay with customer satisfaction. The customer satisfaction level has been analyzed in two terms i.e. material customer satisfaction (MCS) level and abstract customer satisfaction (ACS) level. Customer satisfaction in material sense denotes the aggregate position of the banks in terms of fee charged, frequency with which problems are faced and post purchase behavior of the customers. In abstract sense, customer satisfaction level denotes the position of the banks in terms of post purchase behavior, the efficiency of facilities provided and the example of others using the ATM of the same bank. 7 Research Methodology & Data Base The present study is of analytical and exploratory nature. Accordingly, the use has been made of primary as well as secondary data. The secondary data have been collected mainly from RBI monthly bulletins, Financial Express political weekly, various newspapers and other literature available in the field. To know the problems of ATM structured questionnaires have been used to collect the data from customers using ATM services. 12
    • 8 INTRODUCTION OF THE COMPANY The Bank of Baroda is established in the year 1908 in Baroda. Ever since its inception, the bank has been growing and expanding its branches successfully. At the turn of a century, the bank has its presence in 25 countries across the world. Bank of Baroda has progressively taken a step towards commitment and values by providing uncompromising standards of service to its customers, stakeholders, employees and the like. Bank of Baroda is the 3rd largest bank in India, after State Bank of India and Punjab National Bank and ahead of ICICI Bank. BOB has total assets in excess of Rs. 2.27 lakhcrores, or Rs. 2,274 billion, a network of over 3000 branches and offices, and about 1100+ ATMs. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its nationalize subsidiaries and affiliates in the areas of investment banking, credit cards and asset management. Maharajah of Baroda Sir SayajiraoGaekwad III founded the bank on July 20, 1908 in the princely state of Baroda, in Gujarat. The bank, along with 13 other major commercial banks of India, was nationalized on 19 July 1969, by the Government of India. 13
    • 8.1BANK OF BARODA at Civil Lines ALLAHABAD: Bank of Baroda Civil Lines at Sangam city Allahabad is the First & Oldest branch of the city, established in 1964, became Main Branch of Allahabad. Later on with growth of Banking Industry Bank of Baroda also expanded and became Lead Bank of Allahabad District, having 13 branches in the city & Approximately 90-95 branches in Allahabad Region along with its Regional Office of Allahabad headed by AGM rank Officer. As far as main Branch it is having 19 Staff Members in Toto, and Managing business to the tune of 1) Deposits 2) Advances 3) and Other Services There is Approximately 15000 or more Customers in the branch. Types of A/C Deposits (in thousand) C/A 11, 02, 89 S/A 55, 74, 22 Term Deposites 1,22,56,85 Total Deposites 1,89,33,96 Total Loan & Advances 28,93,89 14
    • 8.2 Heritage & Ethics of Bank of Baroda: The Bank of Baroda was started on 20th July 1908 under the Companies Act of 1887. The initial capital invested was Rs. 10 Lakhs. The Maharaja was none other than Sayaji Rao Gaekwad who, with his visionary insight, planned the beginning of a reputed journey which over the years, came to be known as the Bank of Baroda. It is interesting to note that during the period of 1913 to 1917; almost 87 banks in India succumbed to a financial crisis. However, the Bank of Baroda survived the economic depression by dint of its financial integrity, business prudence and concern uncompromising concern about its customers and clients. This has transcended down to the present ages and has become the motto of the bank. 15
    • 8.3 INTERNATIONAL PRESENCES: Bank of Baroda Building in Dubai In its international expansion Bank of Baroda followed the Indian diaspora, and especially that of the Gujaratis. It has significant international presence with a network of 72 offices in 25 countries, six subsidiaries, and four representative offices. Among Bank of Baroda‘s 42 overseas branches are ones in the world‘s major financial centers i.e. New York, London, Dubai, Hong Kong (which it has upgraded recently), Brussels and Singapore, as well as a number in other countries. The bank is engaged in retail banking via 17 branches of subsidiaries in Botswana, Guyana, Kenya, Tanzania, and Uganda. Bank of Baroda also has a joint-venture bank in Zambia with nine branches. Bank of Baroda maintains representative offices in Malaysia, China, Thailand, and Australia. It plans to upgrade its offices in China and Malaysia shortly to a branch and joint-venture, respectively. Bank of Baroda has received permission or in principle approval from host country regulators to open new offices in Trinidad and Tobago and Ghana, where it is seeking to establish joint ventures or subsidiaries. The bank has received Reserve Bank of India approval to open offices in the Maldives, and New Zealand. It is seeking approval for operations in Bahrain, South Africa, Kuwait, Mozambique, and Qatar and is establishing offices in Canada, New Zealand, Sri Lanka, Bahrain,Saudi Arabia, and Russia. It also has plans to extend its existing operations in the United Kingdom, the United Arab Emirates, and Botswana. 16
    • 8.4 BOB MISSION 17
    • 8.5 HISTORY OF THE COMPANY 1908-1958  1908: Maharaja SayajiraoGaekwad III set up Bank of Baroda (BOB).  1910: BOB established its first branch in Ahmedabad.  1953: BOB established a branch in Mombasa and another in Kampala.  1954: BOB opened a branch in Nairobi.  1956: BOB opened a branch in Dar-es-Salaam.  1957: BOB established a branch in London.  1959: BOB acquired Hind Bank. 1960s  1961: BOB merged in New Citizen Bank of India. This merger helped it increase its branch network in Maharashtra. BOB also opened a branch in Fiji.  1962: BOB opened a branch in Mauritius.  1963: BOB acquired Surat Banking Corporation in Surat, Gujarat.  1964: BOB acquired two banks, Umbergaon People‟s Bank in southern Gujarat and Tamil Nadu Central Bank in Tamil Nadu state.  1964: BOB lost its branch in Narayanjanj (East Pakistan) due to the Indo- Pakistan war. It is unclear when BOB had opened the branch.  1965: BOB opened a branch in Guyana.  1967: The Tanzanian government nationalized BOB‘s three branches there and transferred their operations to the Tanzanian government-owned National Banking Corporation.  1969: The Government of India nationalized 14 top banks, including BOB.  BOB incorporated its operations in Uganda as a 51% subsidiary, with the government owning the rest. 18
    • 1970s and 1980s  1972: BOB acquired Bank of India‘s operations in Uganda.  1974: BOB opened a branch each in Dubai and Abu Dhabi.  1975: BOB acquired the majority shareholding and management control of Bareilly Corporation Bank (est. 1928) and Nainital Bank (est. in 1954), both in Uttar Pradesh. Since then, Nainital Bank has expanded to Uttarakhand State.  1976: BOB opened a branch in Oman and another in Brussels. The Brussels branch was aimed at Indian firms from Mumbai (Bombay) engaged in diamond cutting and jewellery having business in Antwerp, a major center for diamond cutting.  1978: BOB opened branch in New York and another in the Seychelles.  1979: BOB opened a branch in Nassau, the Bahamas.  1980: BOB opened a branch in Bahrain and a representative office in Sydney, Australia. BOB, Union Bank of India and Indian Bank established IUB International Finance, a licensed deposit taker, in Hong Kong. Each of the three banks took an equal share.  1985: BOB (20%), Bank of India (20%), Central Bank of India (20%) and ZIMCO (Zambian government; 40%) established Indo-Zambia Bank (Lusaka). BOB also opened an Offshore Banking Unit (OBU) in Bahrain.  1988: BOB acquired Traders Bank, which had a branch network in Delhi. 1990s  1990: BOB opened an OBU in Mauritius, but closed its representative office in Sydney.  1991: BOB took over the London branches of Union Bank of India and Punjab & Sind Bank (P&S). P&S‘s branch had been established before 1970 and Union Bank‘s after 1980. The Reserve Bank of India ordered the takeover of the two following the banks‘ involvement in the Sethia fraud in 1987 and subsequent losses.  1992 BOB incorporated its operations in Kenya into a local subsidiary with a small tranche of shares quoted on the Nairobi Stock Exchange.  1993: BOB closed its OBU in Bahrain. 19
    •  1996: BOB Bank entered the capital market in December with an Initial Public Offering (IPO). The Government of India is still the largest shareholder, owning 66% of the bank‘s equity.  1997: BOB opened a branch in Durban.  1998: BOB bought out its partners in IUB International Finance in Hong Kong. Apparently this was a response to regulatory changes following Hong Kong‘s reversion to the People‘s Republic of China. The now wholly owned subsidiary became Bank of Baroda (Hong Kong), a restricted license bank. BOB also acquired Punjab Cooperative Bank in a rescue.  1999: BOB merged in Bareilly Corporation Bank in another rescue. At the time, Bareilly had 64 branches, including four in Delhi. In Guyana, BOB incorporated its branch as a subsidiary, Bank of Baroda Guyana. BOB added a branch in Mauritius, but closed its Harrow Branch in London. 2000s  2000: BOB established Bank of Baroda (Botswana).  2002: BOB acquired Benares State Bank in Benares at the Reserve Bank of India‘s request.  2002: Bank of Baroda (Uganda) was listed on the Uganda Securities Exchange (USE).  2003: BOB opened an OBU in Mumbai.  2004: BOB acquired the failed Gujarat Local Area Bank, and returned to Tanzania by establishing a subsidiary in Dar-es-Salaam. BOB also opened a representative office each in Kuala Lumpur, Malaysia, and Guangdong, PRC.  2005: The Reserve Bank of India (RBI) has approved a joint venture between BOB, Bank of Maharashtra (BOM), and Oriental Bank of Commerce (OBC) to set up a bank in Malaysia. The new bank will reside in Kuala Lumpur, which has a large population of Indians. The initial capital required will be US$78 million; BOB will invest 40%, and the other two banks will invest 30% each. The JV is awaiting approval from the Malaysian Central Bank. Bank has built and commissioned its own State-of-the-Art Global Data Centre (DC) in Mumbai for running its centralized banking 20
    • solution(CBS) and other applications in 1900+ branches across India and 20 other counties where the Bank is operating. BOB also opened a representative office in Thailand.  2006: BOB established an Offshore Banking Unit (OBU) in Singapore.  2007: In its centenary year, BOB‘s total business crossed 2.09 lakh crores, its branches crossed 1000, and its global customer base 29 million people.  2008: BOB opened a branch in Guangzhou, China (02/08/2008).  2009: Bank of Baroda registered with the Reserve Bank of New Zealand, enabling it to trade as a bank in New Zealand (2009/09/01)  2010: Bank of Baroda becomes the 3rd Largest Bank in India, overtaking ICICI Bank . Total Business crosses 400000 crores. 21
    • 8.6 Board of Director‟s Name Designation Mr. M.D.Mallya Chairman & Managing Director Mr. Dharmendra Bhandari Director Mr. Maulin A Vaishnav Director Mr. Ranjit Kr.Chatterjee Director Mr. Alok Nigam Director Mr. A.Somasundaram Director Mr. Atul Agarwal Director Mr. Deepak B.Phatak Director Mr.R.K.Bakshi Executive Director Mr.N.S.Srinath Executive Director Mrs. Masarrat Shahid Non Official Part Time Director Mr. Ajay Mathur Non Official Part Time Director 22
    • 9 SERVICES at BOB Apart from the Loans, Deposits, Credit and Debit Cards, Bank of Baroda offers other services to make financial dealings easy and convenient.  Demat  Baroda health  Remittances(baroda money express)  Collection services  ECS(electronic clearing services)  Government business(PPF , tax collection and savings bonds)  RTGS/NEFT  Baroda e Tax  Pay UP Commercial Tax  Phone Banking  Depository services  Baroda Rapidfunds2India  Baroda Remit Xpress  Western Union money transfer  Baroda e-Shoppe  Baroda easy pay  Booking Rail tickets  E-Tax Services  Temple Donation 23
    • 10 BOB‟s SUBSIDIERIS Domestic o Bobcards Ltd. o BOB capital markets Ltd. o Nanital bank Ltd. Overseas o Bank of Baroda (Botswana) Ltd. o Bank of Baroda (Kenya) Ltd. o Bank of Baroda (Uganda) Ltd. o Bank of Baroda (Guyana) Ltd. o Bank of Baroda (U.K.) Ltd. o Bank of Baroda (Tanzania) Ltd. o Bank of Baroda (Trinidad & Tobago) Ltd. o Bank of Baroda (Ghana) Ltd. o Baroda (New Zeeland) Ltd Assciates of Bank of Baroda (Domestic) o Baroda Pioneer Asset Management Co. Ltd. o Nainitaal Almora K.G.Bank o Jhabua Dhar K.G.Bank o Baroda Gujrat K.G.Bank o Baroda Rajasthan Gramin Bank o Baroda U.P. Gramin Bank Forgein o Indo Zambia Bank Ltd. 24
    • 11 Strategic Initiative 2009  The Bank‘s focus was optimise human resource management in a highly motivating work environment, rawing maximum mileage out of the available Information Technology and mbibing a full-fledged marketing culture to promote a sense of professionalism in approach and attitude.  BOB completed Core Banking Solution (CBS) rollout in 1,922 domestic branches covering 94% of its business as at 31st March, 2009.  The Bank launched several new IT products and services such as Phone Banking, Corporate Cash Management System, Payment Messaging Solution and Global Treasury.  The Bank took many initiatives introducing new products both on assets and liability sides during 2008-09 such as Loan for Earnest Money Deposit, Baroda Additional Assured Advance to NRIs, Baroda Bachat Mitra etc.  In its role as a partner to the rural development, the Bank, besides meeting all its credit deployment targets, established four Baroda Swarojgar Vikas Sansthan during the year 2008-09 for imparting training to the unemployed youth and facilitating their gainful self-employment.  It organised awareness programmes for SME borrowers to educate them about various products, services and precautionary steps to be taken in view of global financial crisis. 25
    • 12 JOB DONE IN BOB: 1. Canvassing above services among Customers. 2. Entertaning complaints if any of Customers & their redressel. 3. Learnt Operational banking : i.e. Debit, Credit, Transfer, issuence of Demand Draf t, Banker‘s Cheque, Paasbook Printing, etc. 26
    • 13 E-Banking Product of BOB 1) ATM and Debit card 2) Baroda Connect a) Transaction processing & inquiry for Retail & Corporate customer b) Baroda e-Shoppe c) Baroda easy pay d) Booking Rail tickets e) E-Tax Services f) Online RTGS/NEFT g) Temple Donation 3) Phone Banking 4) Depository services 5) Baroda Rapidfunds2India 6) Baroda Remit Xpress 7) Western Union money transfer 27
    • 14 Advantage of E-Banking 1. Remarkable Reduction in the COST OF TRANSACTION - Increase in PROFITABILITY AT BRANCH -Rs. 36, ATM Rs. 16, e-BAN – Rs. 1 2. ANYWHERE - ANYTIME BANKING for CUSTOMERS. 24x7x365 basis ―Now No Holiday‖ 3. Manpower can divert to Marketing. 4. MUST for RETAINING EXISTING customers and to ATTRACT NEW Customers 28
    • 29
    • 15 DEFNEATION OF ATM ATM means neither “avoids traveling with money” nor “any time money,” but certainly implies both. Slim ATM cards are fast replacing confounding withdrawal forms as a convenient way of getting your money from banks. In a way, they are rewriting the rules of financial transaction. A smart person no longer needs to carry a wallet-full of paper money on his person. All he needs to do is fish out an ATM (automated teller machine) card, insert it in the slot, punch in a few details and go home with hard cash. Automated teller machines (ATMs) were the first well-known machines to provide electronic access to customers. With advent of Automatic Teller Machines (ATM), banks are able to serve customers outside the banking hall. ATM is designed to perform the most important function of bank. It is operated by plastic card with its special features. The plastic card is replacing cheque, personal attendance of the customer, banking hour‘s restrictions and paper based verification. ATMs have made hard cash just seconds away all throughout the day at every corner of the globe. ATMs allow you to do a number of banking functions – such as withdrawing cash from one‘s account, making balance inquiries and transferring money from one account to another – using a plastic, magnetic-strip card and personal identification number issued by the financial institution. 30
    • 15.1 Elgibility of ATM DEBIT CARD 1. 1.Individuals maintaining Savings, SSB account with operational instructions as ―Self‖ or ―Either or Survivor‖. This also includes Pensioners & Senior Citizens. 2. Individuals maintaining Current account , OD account against FD/LIC/NSC with mode of operation as ―Self‖, ―Either or Survivor‖ or ―Sole Proprietor‖. 3. Staff Overdraft accounts (SOD). 4. Minors of 15 years of age and above maintaining Saving Bank account in his individual name with operational instruction as ―Self‖. (not through father & natural guardian). 5. Visually impaired persons. 31
    • 15.1(a) ATM DEBIT CARD Can not be Issued 1. Account where mode of operation is other than ―self‖, ―Either or Survivor‖ and ―Sole Proprietor‖. 2. Visually impaired persons, holding joint account. 3. Customer maintaining ―Nagarik Bachat Khata‖. 4. Account having same customer ID >Card to be linked with other A/Cs 15.3 THE INDIAN ATM INDUSTRY The Indian ATM industry has seen explosive growth in recent times. ATMs represent the single largest investment in the electronic channel services for the Banks. In India, HSBC set the trend and set up the first ATM machine here in 1987. Since then, they have become a common sight in many of our metros. Automated Teller Machines (ATMs) have gained prominence as a delivery channel for banking transactions in India. Banks have been deploying ATMs to increase their reach. While ATMs facilitate a variety of banking transactions for customers, their main utility has been for cash withdrawal and balance enquiry. As at the end of October 2007, the number of ATMs deployed in India was 31,078. According to some estimates the total cash movement through ATMs across India was around Rs. 70,000 crore in FY 06. Clearly, industry watchers forecast a bright future for ATMs in India. While the ATM is a great service for customers, for the banks it means immense savings on the cost of operations. While a typical cash transaction carried out in a banks branch premise would cost Rs 40 that in an ATM will only cost Rs18translating into a cost saving of Rs 22 per transaction. 32
    • 15.4 ATM NETWORKS The ATMs of a bank are connected to the accounting platform of the bank through ATM switches. Inter-bank ATM networks are created by setting up apex level switches to communicate between the ATM switches of different banks. The inter- bank ATM networks facilitate the use of ATM cards of one bank at the ATM(s) of other banks for basic services like cash withdrawal and balance enquiry. Banks owning the ATMs charge a fee for providing the ATM facility to the customers of other banks. The ATM deploying bank from the card issuing banks recovers this fee referred to as ‗interchange fee‘. However the interchange fee is not fixed across banks and depends on the terms of bilateral / multilateral arrangements. Banks with larger ATM network treat interchange fee as an important stream of revenue. 15.5 INTER CONNECTIVITY OF ATM NETWORKS Inter-connectivity of ATM Networks provides access to the customers to use any ATM in the country irrespective of the bank with which the customer is banking. There are a number of ATM network switches such as CashTree, BANCS, CashnetMitr and National Financial Switch (NFS). In addition, most ATM switches are also linked to VISA or MasterCard gateways. 33
    • 15.6 BOB DEBIT CARD The Bank of Baroda International Debit Card is accepted at over 50000 Visa Electron ATMs in India and 1000000 ATMs worldwide. The card is also accepted at any 350000 merchant outlets in India and around 29 millions globally. The card enables you to enjoy the convenience of cash-less purchasing power without the fear of overdrawing your account. Key Benefits  Take advantage of the most widely accepted card and be able to withdraw from any ATM displaying the VISA logo, in India and abroad.  At VISA Electron merchant shops, it can also serve as your electronic purse, and money gets debited instantly from your account, as you pay.  The Card allows you to get mini-statements from Bank of Baroda ATMs, or to check the balance in your account, avoiding visits to even our nearest branches. 15.5.1. Meaning of Baroda Debit Card 1. The ―Bank‖, means Bank of Baroda, a body corporate constituted by and under the Banking Companies (Acquisition and transfer of undertakings) Act, 1970 and having its Head Office at Mandvi, Baroda. 2. ―Card‖ or ―Debit–cum-ATM Card‖ or ―International Debit Card‖ or ―International ATM-cum-Debit Card‘ or ―Debit card‖ refers to the Bank of Baroda VISA Electron Debit Card issued by the Bank to a Card Holder. 3. ―Cardholder‖ means the approved Customer who has requested for the Card upon his/her undertaking to abide by the terms and conditions herein and who has been issued the Card and who is authorized/has the necessary mandate to hold and use the Card. Cardholder is referred to as ―you‖, ―your‖, ‖him‖ or similar pronouns and all reference to the card holder in the masculine gender will also include the feminine gender. Words in plural shall also mean and include those in singular and vice versa. 34
    • 4. ―Account(s)‖ means the Cardholder‘s Savings or Current Accounts that have been designated by the Bank to be eligible account(s) for valid operations of the Debit Card. The Cardholder should be either the accountholder or sole signatory or authorized to act alone/individually when there are more than one account holders/signatories. 5. ―Primary Account‖ shall mean in case of multiple accounts linked to the Card, the account that has been designated as being the main/first account of operation i.e. the account from which purchase transactions, cash withdrawals, charges and fees related to the card are debited. 6. ―Nominated Accounts‖ means and includes the Primary Account as described above, and it indicates the card holder‘s account(s) nominated in writing by him to be accessed by his Debit Card and PIN. 7. ―ATM‖ means any Automated Teller machine whether in India or Overseas, whether of the Bank or an ATM under specified Shared Network, at which amongst other things, the Cardholder can use his Card to access his funds held in his account with the Bank. 8. ―Cash Dispenser‖ means an ATM with restricted functionality of dispensing Cash only. 9. ―PIN‖ means the Personal Identification Number, required to access the Automated Teller Machine, allocated to the Cardholder by the Bank or chosen by him from time to time. 10. ―Shared Network,‖ means network of ATMs other than Bank of Baroda ATMs where VISA cards are accepted. 11. ―Transaction‖ means any instruction given, by a Cardholder by using his Card directly or indirectly, to the Bank to effect action/transaction on/in the account. 12. ―International Transaction‖ means the transactions performed by the Cardholder through his internationally valid Debit Card, outside India, Nepal and Bhutan. 13. ―Account Statement‖ means a periodic statement of account sent by Bank to a Cardholder or Pass Book issued by the branch where the account is maintained setting out transactions carried out by the Cardholder(s) during the given period 35
    • and the balance on that date. It may also include any other information that Bank may deem fit to include. 14. ―Merchant‖ or ―Merchant Establishment‖ shall mean establishments wherever located which accept/honour the Card and shall include amongst others airline organizations, railways, petrol pumps, shops, stores, restaurants etc. advertised by the Bank from time to time. 15. ―Electronic Data Capture (EDC)‖ refers to electronic Point-of-Sale swipe terminals whether in India or overseas, whether of the Bank, Bobcards Ltd, any other Bank on the network, those permit the account(s) to be debited for purchase transactions from the member establishments. 16. ―Valid Charges‖ means charges incurred by the Card Holder for purchase of goods or services on the card or any other charge as may be included by the Bank from time to time for the purpose of this product. 17. ―VISA Electron‖ means a trademark owned by and normally associated with VISA International. 18. ―VISA/Plus ATM Network‖ means ATMs that honour the Debit Card and that display the VISA/Plus or Electron Symbols. 19. ―Force Majeure Event‖ means any event such as fire, earth quake, flood, epidemic, strike, lockout, labour controversy, industrial disputes, riot, civil disturbance, war, civil commotion, natural disasters, acts of God, failure or delay of any transportation agency, or any other furnisher of essential supplies or other facilities, omissions and acts of public authorities preventing or delaying performance of obligation relating to acts of public authorities including changes in Law, or other regulatory authority acts beyond the control of the Bank, or for any other reasons which cannot reasonably be forecast/foreseen or provided against, and which cannot be predicted by men of ordinary prudence. 20. ―Law‖ includes all applicable statutes, enactment, acts or legislature or Parliament, ordinances, rules, bye-laws, regulations, judgments, notifications, guidelines, policies, directions, circulars, directives and orders of any Government, statutory authority, tribunal, board, court or recognized stock exchange, final and interim decrees and judgments. 36
    • 21. ―Technical Problem‖ include any problems and difficulties arising due to the power and electricity failure, computer errors, programming errors, software or hardware errors, computer breakdown, non-availability of Inter-net connections, communication problems between the Bank‘s server and ATM network, shutting down of the Bank‘s servers, no availability of links, corruption of the computer software, problems in ATM or any other Service Providers infrastructure and telecommunication network, problems in any other telecommunication network and any other technology related problems. 15.5.1(a) Activation: i) The Card sent to you needs to be activated at ATM prior to its use at any other device. The Card can be activated through first utilization of the PIN for PIN change at any of the Bank‘s ATMs. 15.5.1(b) Obligations of Card Holder‟s: i) The issue and use of the Card shall be subject to the rules and regulations in force from time to time as issued by Bank of Baroda, Reserve Bank of India . ii) The Card shall be valid only for transaction options, as permitted by the Bank from time to time in India and abroad, at Bank of Baroda ATMs, ATMs of other banks, which are members of VISA/Plus network and VISA Electron Point-of Sale swipe terminals at Merchant Establishments from time to time. iii) The Card is not transferable or assignable by the Cardholder under any circumstances. iv) The Card is and will be the property of Bank of Baroda at all times and shall be returned to the Bank immediately upon Bank‘s request unconditionally. The Cardholder is requested to ensure that the identity of the Bank‘s officer is established before handing over the Card. v) The Cardholder is required to sign the acknowledgement at the time of receipt of card as also to sign the Card immediately upon receipt. The Cardholder must not permit any other person to use it and should safeguard the Card from misuse by retaining the Card in his personal possession and under his personal control at all times. 37
    • vi) The PIN issued to the Cardholder for use with the Card or any numbers chosen by the Cardholder as a PIN shall be known only to the Cardholder and are for his personal use and are strictly confidential. A written record of the PIN should not be kept in any form, place or manner that may facilitate its use by a third party. The PIN should not be disclosed to any third party, including the staff of the Bank or to merchant establishments, under any circumstances or by any means whether voluntary or otherwise. vii) The Cardholder ‗s account will be debited immediately except in case of technical delays or Force Majeure events with the amount of any withdrawal, transfer, valid charges and other transactions effected by the use of the Card. The Cardholder will maintain sufficient funds in the account to meet any such transactions and also be shall not call in question the dates of transactions as appearing in his account even when they appear a few days later but within a reasonable period. viii) The Cardholder shall maintain, at all times, such minimum balance in his account as the Bank may decide from time to time, and the Bank may at its discretion, levy such penal or service charges as per Bank‘s rules from time to time and/or withdraw the Card Facility, if at any time the amount of balance falls short of the required minimum as aforesaid, without giving any further notice to the Cardholder and/or without incurring any liability of responsibility whatsoever by reason of such withdrawal. ix) The Cardholder should not use or attempt to use the Card without sufficient funds in the card account. In the event of payment/debit made in excess of the balance available in the Cardholder/s card account/s for any reason whatsoever, the Cardholder undertakes to repay such overdrawn amount together with the interest 18% p.a. or as applicable from time to time and charges that may be debited by the Bank with in –3- days of such overdrawn amount. This will be in addition to the cancellation of the card at the discretion of the Bank & for any other action which Bank may deem fit. x) The Bank shall have the right of set off and lien irrespective of any other lien or charge, present as well as future on the balances held in the Cardholder primary and/or secondary account/s or in any other account whether in single name or joint names to the extent of all outstanding dues, whatsoever, arising as a result of services extended to and/or used by the Cardholder. The cardholder hereby 38
    • authorizes the Bank or its agent to recover all dues from any of the accounts of the cardholder with the Bank. xi) The Cardholder will in all circumstances accept & be responsible for transactions effected by the use of the card, whether authorised by the Cardholder or not, and shall indemnify the Bank against any loss or damage caused by an unauthorized use of the Card or related PIN, including any penal action arising there from on account of any violation of RBI guidelines or rules framed under the FEMA 1999 or any other law being in force in India and/or any other country/state continent/territory wherever located in the world at the time, notwithstanding the termination of this agreement. xii) In case of joint account, where only one card is issued to a joint account holder, the other joint account holder/s shall expressly agree with and give consent on the application form for issue of the card. If more than one person sign or agree to be bound by these terms and conditions, the obligation of such persons hereunder will be joint and several and as the context may require. Any notice to any such person will be deemed as an effective notification to all such persons: - (a) In case any of the joint account holder/s gives ―STOP OPERATION‖ instructions, no operations will be allowed on such Card account/s through the use of the Card. Anyone or more joint account holders only in respect of such card accounts in which he/she is a joint account holder can give the ‗Stop Payment‘ instructions. (b) All the joint account holders shall jointly instruct the Bank to revoke ― Stop Payment Instructions‖ xiii) The Cardholder is requested to note that the Card is valid upto the last day of the month/year indicated on the Card. The renewed Card shall be sent by the Bank before the expiry of the Card at the discretion of the Bank, upon evaluation of the conduct of the account. The Bank reserves the sole right of renewing the Card account on expiry. The Cardholder undertakes to destroy the expired debit card by cutting it into several pieces. xiv) The Cardholder is required to verify statement of account / get passbook of his Account updated from the branch where he is maintaining his Card Account at least once in a month. 39
    • xv) The Cardholder shall inform the Bank in writing within—7-- days from the statement date or from the date of completion of his passbook of any irregularities or discrepancies that exist in the transaction details at an ATM/Merchant Establishment. If no such notice is received during this time, the Bank will assume the correctness of both the transactions and the statement of account/passbook. 15.5.2 FEATURES OF THE INTERNATIONAL DEBIT CARD i) ATM Facilities: Following facilities at Bank of Baroda ATMs pertaining to Card Account shall be offered at the sole discretion of the Bank subject to change from time to time, without prior notice (a) Withdrawal of cash by the Cardholder from his card account upto a stipulated number of occasions and limit during the cycle of 24 hours, as may be prescribed, by the Bank from time to time. (b) Enquiry about the balances in the card accounts (c) Printing of Mini Statement of Account (d) Change of PIN ii) AT Bank of Baroda Cash Dispensers and ATMs of other banks which are members of VISA/Plus network the following facilities shall be offered, which are subject to change from time to time without any prior notice: - (i) Withdrawal of cash by the Cardholder from his card account upto a stipulated number of occasions and limit during the cycle of 24 hours, as may be prescribed, by the Bank from time to time. (ii) Enquiry about the balances in the card accounts iii) PIN is a secret four-digit code number referred to as ATM-PIN, which is assigned by the Bank to the Cardholder. The Cardholder will be required to enter the PIN to avail ATM services using the card. Cardholder should ensure that the PIN mailed by the Bank is received in a sealed envelope without any tampering. 40
    • iv) The Cardholder is advised to change the PIN immediately through the relevant menu option in Bank ATM and he is also advised to keep the PIN changing at the frequent intervals. If the Cardholder forgets the PIN, he shall apply to the Bank for the regeneration of the PIN. The Bank shall send the new PIN directly to Cardholder‘s registered address with the Bank. New PIN may be issued at the sole discretion of the Bank, upon request in writing and payment of the requisite fee v) The Bank may from time to time, at its discretion, tie up with various agencies to offer various features on Debit Cards. All these features would be on best efforts basis only. The Bank does not guarantee or warranty the efficacy, efficiency, and usefulness of any of the products or services offered by any service providers/merchants/ outlets/agencies. Dispute, if any, would have to be taken up with the merchant/agency, etc directly and solely i.e. without involving the Bank in any manner. 15.5.3 ATM USAGE i) The Card is accepted at Bank of Baroda‘s ATM network and at VISA/Visa Plus ATMs in India and abroad. ii) Cash Withdrawals and balance enquiry performed by the Cardholder at VISA/Plus ATMs in India will be subject to a fee and will be debited to the account at the time of such withdrawal and/or balance enquiry transactions. Similar transactions performed by the Cardholder at VISA/Plus ATMs in countries other than India will also be subject to fee, as per prevailing tariff of charges. All transactions at non Bank of Baroda ATMs, whether executed or failed, are subject to the charges as determined by the Bank from time to time. iii) For all cash withdrawals, cheque/cash deposits (wherever provided) at Bank‘s ATMs, any statements/receipts issued by the ATM at the time of deposit or withdrawal shall be deemed conclusive, unless verified and intimated otherwise by the Bank. Any such verification shall be final and conclusive and verified amount will be binding on the Cardholder. iv) The Bank will not be liable for any failure, due to technical problems or Force Majeure Events, to provide any service or to perform any obligation there under; nor for any delayed debits, if any, and the consequences thereof. 41
    • v) Bank will not be liable for any consequential or indirect loss or damage arising from or related to loss/use of the Card and/or related PIN, howsoever caused. vi)The availability of ATM services in a country other than India is governed by the local regulations in force in the said country. The Bank will not be liable if these services are withdrawn without notice thereof; nor for the delay or failure of ATM services over there. 15.5.4 Merchant Establishment Usage i) The Card is accepted at all electronic Point-of-Sale terminals at merchant establishments in India and overseas which display the VISA Electron logo. ii) The Card will be accepted only at Merchant Establishments that have any EDC swipe terminals. Any usage of the Card other than electronic use will be deemed unauthorized and the Cardholder will be solely responsible for such transactions. Please note that PIN is not required for use of the Card at EDC machines at Merchant Establishments. iii) The Cardholder is required to sign the sales slip and retain a copy of the same whenever the Card is used at merchant establishments. Bank will not furnish copies of the sales slip. Any sales slip not personally signed by the Cardholder but which can be proven, as being authorised by him, will be deemed to be his liability. iv)The Card is accepted at any of VISA Electron Card merchant outlets worldwide. Bank will not accept any responsibility for any dealings the merchant may have with the Cardholder, including but not limited to the supply of goods and services so availed or offered. If Cardholder has any complaint relating to any VISA Electron merchant establishment, he should resolve the matter with the merchant establishment and failure to do so will not relieve him from any obligation to the Bank. v) Bank accepts no responsibility for any charges over and above the value/cost of transactions levied by any merchant establishment and debited to Cardholder‘s account along with the transaction amount. vi) A purchase and a subsequent credit for cancellation of goods/services are two separate transactions. The refund will only be credited into Cardholder‘s Account (less cancellation charges) as and when it is received from the 42
    • merchant. Unlike debit transactions, credit transactions are not given effect online, hence if the credit is not posted in the account within –30- days from the day of refund, the Cardholder will notify the Bank, along with a copy of the credit note from the merchant. vii) In case of card linked to multiple accounts, transaction at merchant establishments will be effected only on the primary account. In case there are insufficient funds in the said account, the Bank will not honour the transactions even if the necessary funds are available cumulatively or severally in the other accounts linked to the Card. viii) The Card is not to be used at Hotels during check-in for ―blocking the amount‖ as done for credit cards and also at other merchant establishments where advance payment is required even before completion of the purchase transactions or services. ix) The Card should not be used for any Mail order/Phone/Inter-net purchases and any such usages will be considered unauthorized and the Cardholder shall be solely responsible. x) The Card should not be utilized for payment of subscription to foreign magazines/periodicals and any such usage will also be considered as unauthorized. xi) The Cardholder agrees to use Card upto a stipulated number of occasions and/or upto an amount limited for a cycle of 24 hours, as may be prescribed by the Bank from time to time. 15.5.5 INTERNATIONAL USAGE i) The Card is NOT VALID for foreign currency transactions in Nepal & Bhutan. (i.e. in any currency that is not the local currency or the Indian Rupee). ii) The Cardholder is required to use the Card strictly in accordance with the Exchange Control Regulations of Reserve Bank of India. In the event of failure to comply with the same, the Cardholder is liable for action under Foreign Exchange Management Act 1999 and may be debarred from holding the Card from the Bank either at the instance of the Bank or that of the RBI. The Cardholder shall indemnify and hold Bank harmless from and against any/all 43
    • consequences arising from his not complying with Exchange Control Regulations of RBI. iii) The Bank shall be under no liability whatsoever and shall be deemed to be indemnified in respect of a loss or damage arising directly or indirectly out of the decline of a charge caused by the Cardholder having exceeded the foreign exchange entitlements as prescribed by RBI as issued from time to time. iv) The card may be used, within the foreign exchange entitlements, as stipulated by RBI from time to time, by Cardholders going abroad for bonafide personal expenses, provided the total exchange drawn during the trip abroad does not exceed the entitlement. Import of goods, so purchased abroad, into India would be governed by the baggage rules/ EXIM policy or any other rules in force. The entitlement of exchange should be ascertained prior to the trip from the authorised dealer branches of the Bank. The card cannot be used for effecting remittances for which the release of exchange is not permissible under the extant rules. v) Non-resident Indians can hold the internationally valid debit card, provided all dues arising out of its use in India/abroad are met out of an NRE account held with the Bank. vi) The Cardholder agrees that every transaction for withdrawal of foreign currency will attract a service fee stipulated by the Bank. The service fee is liable to be changed without notice. vii) The exchange rate used for all foreign currency transactions will be decided by the Bank/VISA and will be binding on the Cardholder. 15.5.6 FEES i) Bank‘s Debit Card is currently offered free of charge to primary account holder and to ONE joint account holder. However, Bank reserves the right to levy the fees at a later date without prior notice. Such fees, if and so levied, will be debited to Cardholder‘s primary account on the Cardholder‘s approval / renewal at Bank‘s discretion. These fees are not refundable. Charges for other services will be debited at prevailing rates. 44
    • ii) Transaction fees for cash withdrawals/balance enquiry wherever applicable, will be debited to the account at the time of posting the Cash Withdrawal/balance enquiry. iii) All charges incurred in foreign currency will be debited in the account in Indian Rupees. iv) The charges for usage of the Debit Card may be revised/changed by the Bank from time to time without prior intimation to the individual Cardholder. 15.5.7 Lost or Stolen Card I) If the Card is lost or stolen, the Cardholder must report the loss to the Bank in India immediately for hot listing the Card. Though the loss or theft may be reported by means of the 24 hours Customer Service, at his own expenses, the Cardholder must confirm the same in writing to the Bank as soon as possible .A copy of the acknowledged police complaint must accompany the said written confirmation. ii) If the Cardholder loses his card overseas, he may either follow the above procedure or may report the loss through the VISA Global Emergency Assistance (VGEA) help lines. In case the Cardholder uses the VGEA services, then the charges for the usage of such services shall be borne by the Cardholder. iii) Cardholder is protected from any financial liability, after the loss/theft is reported to the Bank, arising from any purchase transaction done on his card from the time card holder reports the loss to the Bank & gets confirmation. However, NO SUCH COVERAGE will be available on the CASH withdrawals done through ATMs as such transactions are governed by PIN, which is confidential to Cardholder only. iv) The Cardholder agrees to indemnify the Bank fully against any liability (civil or criminal), loss, cost, expenses or damages that may arise due to loss or misuse of the Card in the event that it is lost and not reported to the Bank or lost and misused before it is reported to the Bank. v) The replacement card may be issued at the sole discretion of the Bank after the receipt of written request and upon payment of requisite fees, provided the Cardholder has, in all respects, complied with the terms and conditions. 45
    • vi) If the lost/stolen card is subsequently recovered, the Cardholder shall not use the same but destroy the Card by cutting it into several pieces through the magnetic strip. 15.5.8 DISCLOSURE OF INFORMATION i) The Cardholder shall provide any information, records or certificates relating to any matters that the Bank deems necessary, as and when requested by the Bank. The Cardholder will also authorise the Bank to verify the veracity of the information furnished by whatever means or from whichever source as may be deemed necessary. If the Cardholder declines to provide the information or provides incorrect information, the Bank at its sole discretion, may refuse renewal of the Card or cancel the card forthwith. ii) The Bank reserves the right to disclose, in strict confidence, to regulatory and other authorities and institutes, such information concerning the Cardholder‘s account as may be necessary or appropriate in connection with its participation in any Electronic Fund Transfer Network. iii) The Bank also reserves the right to disclose customer information to any court of competent jurisdiction, quasi-judicial authorities, law enforcement agencies and any other wing of Central or State Government. iv) The Bank reserves the right (but shall not be obliged) to report to the RBI, expenditure undertaken by its Cardholders, in foreign currencies to ensure that the Basic Travel 15.5.9 Insurance i) The insurance benefit/s as and when provided on the card will be available to the Cardholders as per the terms of the relevant insurance policy in force and only so long as you are and remain a Cardholder of the Bank with your accounts conduct being deemed satisfactory. In the event of Card and/or account facility being terminated for whatsoever reason, the benefit of such insurance cover shall automatically and ipso facto cease to be available from the date of cessation of membership. ii) The Zero Lost Card Liability insurance coverage is provided to Cardholders by an insurance company, whose terms, conditions and decisions (for which Bank 46
    • is not liable) will apply. Please note that the insurance covers the liability of misuse of loss/stolen card only after the date and time that cardholder reports the loss/stolen event to the Bank and the same is acknowledged / confirmed by the Bank. iii) Bank does not hold any warranty and/or make representation about quality, delivery of the cover, claim processing and settlement of the claim by the insurance company, in any manner whatsoever. iv)The insurance company may ask the Cardholder to submit additional documents and/or information, as per the requirement of the claim. v) Bank will not be liable for any delayed settlement of the claim. 15.5.10 Statements and Records i) The records of Card Transactions will be available on the account statement issued by the Bank and/or account passbook got updated by the customer. It will be obligatory on the part of the customer to get his passbook updated from the branch where he is maintaining Card account at least once in a month. ii) The Bank‘s record of transactions processed by the use of the Card shall be conclusive and binding for all purposes. 15.5.11 Disputes i) In case of purchase transactions, a sales slip with the signature of the Cardholder together with the card number noted thereon should be conclusive evidence between the Bank and the Cardholder as to the extent of the liability incurred by the Cardholder. The Bank shall not be required to ensure that the Cardholder has received the goods purchased/availed of the services to his satisfaction. ii) The Bank shall make bonafide and reasonable efforts to resolve an aggrieved Cardholder‘s disagreement with an applicable charge indicated in the account statement/passbook or as otherwise determined by the customer within –45- days of the receipt of notice of disagreement. If after such effort Bank determines that the charge is correct, then it shall be deemed to be correct if not advised otherwise by the Bank to the Cardholder. iii)The Bank accepts no responsibility for the refusal of any establishment to honor the Card whether due to technical reason or otherwise. 47
    • iv) This agreement will be construed in accordance with and governed by the laws of India. All disputes are subject to the exclusive jurisdiction of the Courts of Mumbai, India, irrespective of whether the application for issuance of card was submitted to any branch of the Bank in India or whether any other Court may have concurrent jurisdiction in the matter. v) The Cardholder shall be liable for all the costs associated with the collection of dues, and legal expenses. 15.5.12 GENERAL i) The Cardholder will notify the Bank in writing of any change in his employment, business and/or office or residential address and telephone numbers and email ID where applicable. ii) Any notice sent by the Bank by post will be deemed to have been received by the Cardholder within –5- working days from the posting of the notice to the address last given to Bank in writing by the Cardholder. Publication of changes by such means as the Bank may consider appropriate will constitute effective notice to the Cardholder thereof. iii) The Bank reserves the right to add to, delete from or vary any of the terms and conditions, policies, features and benefits upon notice, as described above, to the Cardholder. Use of the Card after the date upon which any of these alterations are to take effect will be taken to be evidence of the acceptance, without reservation by the Cardholder of such changes. iv) When Cardholder completes a transaction through an ATM, he can opt to receive a printed transaction record. The amount of available funds is shown on the ATM receipt when he uses his Card. The Cardholder is advised to obtain the receipt and to retain with him the record of transaction generated by the ATM. In case of demand /need the same shall be produced to the Bank for verification. v) The Bank reserves the right to launch the scheme for loyalty points for various types of transactions and redeeming thereof. The scheme shall come into force as per terms of notification as given by the Bank. The terms of the scheme shall be in addition to and not in derogation to the terms and conditions of the card herein. 48
    • vi) Super Savings bank &Premium Current Account customers will be able to withdraw the amount or make purchases at POS (point of sale) only upto the balance available in their Savings Account/Current Account and not upto the balance available in savings and Fixed Deposit Components. 15.5.13 LIMITATION OF BANK‟S LIABILITY i) The Bank shall not be liable to the Customer or to any third party, for any loss or damage suffered due to the following reasons: - a) Any action carried out by the Bank, based upon the instructions of the Customer by exercising due diligence and reasonable care. b) Any action carried out by the Bank in good faith, based upon the instructions of the customer. c) Any unauthorized and illegal transactions occurring through the use of Bank Account(s), which can be attributed to the fraudulent or negligent conduct of the customer. d) Intrusion or hacking into the computer system/network or communication network of the Bank. e) Failure to carry out any instructions of the Customer due to insufficiency of balance in the Customer‘s bank account(s). f) Failure of the customer to access the Bank account due to any Force Majeure Event or any Technical Problems or any other reason beyond the control of the Bank. g) Failure of the customer to inform the Bank when the Customer‘s Bank account is being illegally used by third parties for carrying out unauthorized and illegal transactions. h) Failure of the Customer to keep confidential and secure, PIN or any passwords, keywords or other identification marks given to the Customer for operating of the Bank account and/or card. i) Failure of the Customer to inform the Bank regarding any changes in the Customer‘s Personal information or Account information. 49
    • j) Violation of any foreign Law k) Breach of any of the other terms and conditions stated herein by the Customer. l) Non debiting of the amount instantly on transaction through ATM Under no circumstances shall the Bank be liable for any damages, whatsoever whether such damages are direct, indirect, incidental, consequential and irrespective of whether any claim is based on loss of revenue, investment, production, goodwill, profit, interruption of business or any other loss of any character of nature whatsoever and whether sustained by the Customer or any other third party. 15.5.14 TERMINATION i) The Bank reserves the right to cancel/ withdraw the Card or any of the other services offered at any time without assigning any reason. ii) If the Cardholder decides to close his account with the Bank, the Card(s) issued with this account, as the primary account would automatically stand cancelled. The Cardholder(s) must immediately cease to use the Card and destroy and return all his/additional Cardholder‘s cards that are linked to this account. In case any outstanding Card transactions that have not yet been debited to the account, the same will be netted out from the balance prior to the Bank returning the funds to him. In case account is closed, due to any reason whatsoever, prior to debit of any outstanding Card transactions, Cardholder(s) are liable to refund the amount along with the interest and charges applicable from time to time. iii) The Bank shall be entitled to terminate the Card facility with immediate effect without notice and the Card shall be returned upon the occurrence of any of the following events: - a) Failure to comply with the terms and conditions herein set forth. b) In the event of default under an agreement or commitment entered into with the Bank. c) The Cardholder becoming the subject of any bankruptcy, insolvency proceedings or proceedings of the similar nature. 50
    • Demise of the Cardholder e) Failure to maintain minimum required balance. (iv) In the event of cardholder being desirous of terminating the use of International Debit Card, he/she shall give the Bank not less than 15 days notice in writing & surrender the card forthwith to the Bank. He/she shall be allowed to close the designated account after expiry of the notice period & after the balance /dues if any have been set off / settled. 3D Secure – Verified by VISA Verified by Visa (VBV) is an easy to use, secured online payment service provided to you by Bank of Baroda that lets you shop securely online with Bank of Baroda Visa Debit Card. If you have a Bank of Baroda VISA debit card with CVV2, you need to authenticate yourself with your Debit Card Number, ATM, PIN, and Card Expiry Date and then create your personal 3D Secure VBV password. Thereafter, you can continue online shopping on the merchant website. It is mandatory for you to register for the service as per RBI guidelines with effect from 1st, August 2009. 51
    • 15.6 Advantage of ATM/ Debit Card Advantages of Debit Cards are : – Debit Cards are Issued and Renewed - Free for Life Time (at present 10 years) – Customers can withdraw Cash Anywhere - Anytime – Maximum Rs15,000 per day & 4 times in a day – Point of Sales Transactions for purchase of Goods and Services up to Rs.25000/ per day • Increase in number of txns of our ATMs will reduce the transaction cost of the bank. • To increase the hit rate , ALL active SB / CA / SOD / ODBOD accounts should be to provide Debit Cards & customer to be educated for safe use of the debit / ATM cards. 52
    • 15.7 REVISED FEE STRUCTURE FOR ATMs Services Charges For use of own ATMs forany purpose Free (with immediate effect) For use of other bank ATMs for balance enquiries Free (with immediate effect) For use of other bank ATMs for cash withdrawal No bank shall increase the charges prevailing as on Dec.23 2007 Banks which are charging more than Rs.20 per transaction shall reduce the charges to a maximum of Rs.20 per transaction by 31-Mar-08* Free - with effect from April 1.2009 Providing relief to millions of users, the RBI has also said from April 1, 2009, customers using the inter-bank ATMs (ATMs of other banks) for cash withdrawals or balance enquiries will not be charged any fee. As of now, customers have to pay Rs 50 as annual charges for using the ATM facility of their bank, while charges ranging from Rs 20-Rs 50 per transaction are levied for the inter-bank ATM transactions. Customers are also paying anything between Rs 10- Rs 20 for making balance enquiries through inter bank ATMs. 53
    • 15.8 ATM Operational Issue • Upload the Debit Card request thru “HATMREQ” & Verified. • Online View the Card Status, PIN Status & Card History on your CBS PC thru URL http://192.168.1.128:8081/brm Login user id -Branch Alpha & Password -asdf (BCC:BR:101:247 dated 12.08.09) • Resolve the complaints about non receipt of Debit Cards and PINs immediately SAFE KEEPING OF DEBIT CARDS & PIN MAILERS (BCC:BR:101:356 dated 02.12.09) • The Debit Card and PIN mailer should be kept in lock and key in separate custody of -2- different authorized officers. • The cards and the PIN mailers should never be left on the working table • Cards & PIN mailer should be delivered immediately to customer after verification of identity and against signature in register. • If Cards remain undelivered beyond 90 days; prepare a list and send to BOBCARDS Ltd by e-mail for blocking. • Not to destroy such undelivered and blocked cards. • To destroy the PIN mailer after proper recording at the branch in presence of two officials. • Don‟t return the debit cards and PIN mailers to BOBCARDs. • If a customer approaches to take his card, avoid obtaining fresh application, scan such undelivered and blocked cards and send a e-mail to BOBCARD requesting for de-blocking and recreation of PIN mailer. 54
    • • Report breakdown of ATM to Vendor, using Toll Free Number, maintain a Register with names and phone numbers of all involved in ATM servicing. • Register complaints through „online complaint portal‟. • ATM should remain functional on 24x7x365 basis 16 MATERIAL CONSUMER SATISFACTION LEVEL: Material customer satisfaction level has been examined on the basis of three variables i.e. reasonability of the fee charged, frequency with which problems are faced and the post purchase behavior of the customers. 16.1 Fee Charged Fee charged by the banks is one of the variables taken for checking customer satisfaction level. If customer feels that the fee charged by the bank is reasonable then he is satisfied and vice-versa. Five degrees of reasonability have been taken and they are coded as 5, 4, 3, 2, &1. There is direct relation between fee charged and customer satisfaction. 16.2 Problems Faced Second parameter for measuring MCS level is problems faced by the consumers while using ATM of a particular bank. If consumers are facing problems more frequently, customer satisfaction level will be less and vice-versa. There is indirect relation between the problems faced and the customer satisfaction. Three degrees namely often, rarely and never have been taken and they have rated as 3, 2, & 1 respectively. 55
    • 16.3 Post Purchase Behavior Post purchase behavior has been analyzed through two statements. If they are agreeing with these statements then their customer satisfaction level is rated to be high. There are five degrees for each statement and they are rated as 5,4,3,2 & 1 accordingly. Post purchase behavior has direct relation with customer satisfaction level. 17 Overall Material Customer Satisfaction Level After considering all the elements of customer satisfaction they are combined together to find out the overall customer satisfaction level in materialistic terms. The overall customer satisfaction level is the combination of three parameters i.e. fee charged, frequency of the problems faced and the post purchase behavior. 18 Abstract Customer Satisfaction Level (ACS) Abstract customer satisfaction level has been examined through the deep study of the various parameters of customer satisfaction. Three parameters have been chosen for this purpose i.e. factors affecting choice of ATM, the purpose for which ATM is often used and the problems faced while using ATM. 18.1 Factors affecting choice of ATM While choosing ATM of a particular bank customer takes care of some things. They are known as factors affecting the choice of ATM. 56
    • 18.2 The purpose for which ATM is most often used ATM does not mean the plastic card and PIN (Personal Identification Number) but the services for which you can use it are the most important part. These services are cash/cheque deposit, fast cash withdrawal, view account balances & mini statements and request a chequebook or account statement. Among all the factors affecting example of others is one, which is the clear indicator of the customer satisfaction. People will purchase ATM of a particular bank on the basis of other‟s example if customers using it previously are satisfied. 57
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    • 19 Introduction to Baroda Connect ―Baroda Connect ―, an Internet Banking Portal introduced for rendering effective customer service on 24 x 7 basis. Baroda Connect Portal is secured with 128 bit SSL (duly certified by VeriSign). This will ensure that all your sensitive information will be encrypted and then only travel on the public network. Thus it will be safe to use this portal. ―Baroda Connect‖ is an umbrella of e-Banking Products offered on e-Channels. This product initially will contain Internet Banking only. With this new channel, customer will be able to operate his Bank account(s) on 24 x 7 basis from any where, just at the click of his mouse. 19 (a) Fund Transfer Limit Retail User Per Trans. Per day Unlimited in self Self a/cs 3rd Party a/cs Weekly linked A/C‘s for 500000 50000 Monthly Retail Users 1000000 100000 Yearly BCC:BR:101:338 4000000 400000 Max. Trans. Per Dated 19.11.09 10000000 1000000 day 60000000 6000000 No restriction No restriction 60
    • 19(b) Facilities from Baroda Connect Baroda e Shoppe facilitates the Bank‘s customers to make payments for goods and services purchased online through Baroda Connect with technical support from M/S Avenues (India) Pvt Ltd. Baroda easy Pay is an electronic bill presentation & payment service launched with technical support of ―Bill Desk‖. – Utility bill payment – Payment of Insurance premium – Subscription of MF – Travel fare / donation etc – At present available to customer of CBS branches of Mumbai Book Rail Ticket on IRCTC through Baroda connect account Temple donation for Guruvayoor Sri Krishna Temple- Kerala & Shirdi Sai Baba Temple, Shirdi, Nathdwara Temple 19.1Baroda Connect Services offered The following facilities are available for Baroda Connect. • Accounts • Bills • Transfers (Self Linked and Third Party Transfer) • Requests • Mails • Alerts • Profile • Activity History • Modeling 61
    • 19.2 Advantage of Baroda Connect  24 X 7 Online Any Time Anywhere Banking  Summarized view of all linked accounts  Online Inquiry  Saving of Time and energy  Transfer funds between self/linked and third party accounts (within BOB)  Make requests  Alerts services SMS/email  Bills payment 19.3 Brief about Logging in A Unique user ID and password to be collected by you from the branch. Sign On/Login and Transaction Password is necessary for self/linked funds transfer, third party transfer and offline requests. Thereafter you will be enabled/activated. If the logging in problem persists, then kindly contact Relationship Manager (at branch) or send a mail. Please ensure that all the instructions regarding password and its security (given vide 3.0) are properly adhered to. 62
    • 19.4 How to use the Facility On Logging in, the home page appears, which will have various menu‘s as given hereunder:  Accounts  Bills  Transfers  Requests  Mails  Alerts  Profile  Activity History  Modeling In the Home Page itself, Accounts Summary is available. Accounts Summary will give aggregate balances in respective Operative, Deposit, Loan Accounts which will be currency wise also. Times Stamp will indicate the time and date as on which, these balances have been fetched. Further, you will get various alerts on this page such as Password Alerts. 63
    • 19.5 BRIEF ABOUT PASSWORD Customer‘s will receive Sign On/Transaction Password from the branch. Customers will compulsorily be forced to change the password for the first time. While changing the password and while subsequently using it, please note that…. • It must contain minimum 8 Characters and Maximum 16 Characters. • It must contain an alphabet ( A-Z or a-z ) and a number ( 0-9 ) and a special character ( @,$,#,* etc), all the three. • It should not contain all the letters used in user id. • It is case sensitive i.e., if password is in small letters use the same. If capital letters are used, it will not word. • For safety, password will be blocked, if attempt to Sign On fails for 3times.( If password is blocked, you may approach the branch by filling up the forgot password form available on the home page and you will be enabled and user will be able to access Baroda Connect, using the same password). • While changing the password subsequently, user can‘t use any of the last 5 passwords. If not changed in 90 days, system will force to change the password. However, we advise user to keep changing the passwords, at a regular interval 64
    • 19.5.1 SECURITY OF PASSWORD Please note that your password(s) are of utmost importance in Internet Banking. It is the only way to identify you, by the system. Therefore, its security is very crucial and we advise you as under… • Please do not write these passwords any where. • If you feel someone knows any of your passwords ( i.e., it is compromised), please change the password immediately. • You should change the passwords at a regular interval ( you will be forced to change the password by the system, if you do not do so after 90 days ). • Do not share your user name and password(s) to anybody, including bank staff. ( Bank does not require your user id or password at any point of time. So if you receive any communications asking for this information please do not send your id and password(s). • Do not use name of your spouse, children etc., as a password, since they are very easy to crack. Further, avoid using important dates ( wedding anniversary, birthdays of yourself/spouse/children etc.,) as your password. Relatives name or date of birth or address in your password. 65
    • 19.5.2 Phising • Phising is a technique used by the hacker to acquire sensitive information fraudulently. • By using fake links appearing genuine. • These sensitive information are used for fraudulent transactions. • When any wrong debit through internet reported by customer, no assurance should be given for restoration of the amount. • No FIR by branch as fraud has taken place outside the branch. • Customer a/c to be blocked immediately to prevent further fraud/s. 19.5.3 OTHER IMPORTANT SECURITY TIPS Customer‘s do not leave the computer unattended while they are accessing Internet Banking services. Always type full URL i.e., address of the Internet Banking Web site- For Ex: https://intl.bobibanking.com/intl/botswana/botswana.htm or add this website in your favorites. This will avoid the need for typing the URL every time, you Sign On and subsequent risk of scouting. Please ensure that https is used while logging in. ‗s‘ indicates that this is secured site. You will always see a seeing this lock symbol, check if your website address is correct. Every time you log in, you are shown the time when you logged in last. If you feel that, you did not Sign On at the time shown, get alerted immediately. Change your passwords, check all the transactions and ensure that nothing untoward has taken place. Please ensure that antivirus on your PC is updated and thereby risk of virus attacks can be reduced. However, antivirus can not check for spy wares. So avoid downloading un wanted softwares from the unreliable websites. The recommended browsers are: 66
    • Internet Explorer Version 5.5 and above Netscape Navigator Version 7.1 and above available in the Login Page of Browser settings is https://intl.bobibanking.com As and when you have finished using Internet Banking, do not forget to log out completely. Further close the window completely, after you log out. Avoid closing the window abruptly, on usage. Know your software. Malicious software ( e.g., viruses, worms, Trojan Horses and Spy Ware ) often masquerades as legitimate and even useful software. Think carefully before installing or running new software, especially anything unsolicited. Clear the browser cache regularly and to clear your browser cache in case of Internet Explorer… Go to ― Tools ― Go to ―Internet Options ― Select ―General‖ Click on ―Delete Files‖ at ―Temporary Internet Files‖ To clear your browser cache in case of Netscape Navigator… Go to ―Netscape‖ or ―Edit‖ Go to ―Preferences‖ Select or double click on ―Advanced‖ Select ―Cache‖ Click on ―Clear Memory Cache‖ and ―Clear Disk Cache‖ 19.6 CHARGES: All Internet Banking facilities are offered ―free of cost‖ except for Stop Payment charges. However, the Bank reserves the right to charge any of the services, which may be offered in future without any prior notice. 67
    • 19.7 Issue Impacting E-Banking Services Informational Website:  Potential liability and consumer violations  ―The insider threat‖ if the website is not properly isolated  Avenue for spreading viruses and other malicious code  Reputational risk for service disruption and defacing Transactional websites:  Safeguarding customer information  Authentication processes (e.g. ID theft)  Liability for unauthorized transactions  Losses from fraud  violations of laws or regulations (e.g. consumer privacy, etc.)  Reputational risk from failure to process third-party payments Sectors 2009 Percentages 2008 Percentages Financial 79% 83% ISP 8% 7% Retail 4% 4% Insurance 2% 2% Internet community 2% 2% Telecom 2% <1% Computer hardware 1% 1% Government 1% 1% Computer software <1% 1% Transportation <1% 1% 68
    • 19.7.1 E-Banking Risks The types of e-banking risks include:  Transaction or operations risk  Credit risk  Liquidity, interest rate, price, and market risks  Compliance or legal risk  Strategic risk 69
    • 19.7.2 Operational/ Technological Risks Technology Element Risks 1) Management processes  Management oversight  Inadequate audit coverage  New products process 2) Architecture  Poor development standards  Mis-configuration of hardware/software  Datacenter burns 3) Integrity  Back officer mistake  Errors of judgment 4) Security  Inadequate password administration  Breach of policy  Viruses, malware, phishing, etc 5) Availability  Natural disaster  Failure to backup 70
    • 19.7.3 Transcation or Operational Risks May arises from:  Fraud  Processing errors  System disruptions  Other unanticipated events May be mitigated by:  Adapting effective polices, procedures, and controls  Sufficient capacity and redundancy 19.7.4 Credit Risks  Verifying the customer‟s identity  Monitoring and controlling the growth, pricing, underwriting standards, and ongoing credit quality  Monitoring and oversight of third-parties  Monitoring out-of-area lending (e.g. concentration and volume)  Valuing collateral and perfecting liens 19.7.5 Market Risks  Dependence on brokered funds or other highly rated sensitive deposits  Geographic restrictions  Impact of loans and deposit growth (e.g. on capital ratios)  Volatility of funds 71
    • 19.7.6 Compliance & Legal Risks  Uncertainty over legal jurisdictions  Delivery of credit and deposit-related disclosures/notices as required by law  Establishment of legally binding electronic agreements  Solicitation, collection and reporting of government monitoring information on applications and loans (e.g. AML requirements)  Delivery of privacy and opt-out notices  Record retention requirements 19.7.7 Strategic Risks  Risk management costs against the potential return on investment  MIS to track e-banking costs, usage and profitability  Generation of sufficient customer demand  Adequacy of technical, operational, compliance or marketing support  Competition 19.7.8 Reputation Risks  Customer complaints  e.g. difficulty of use, poor help desk service, etc.  Failure to provide reliable service  Disclosure or theft of confidential customer information to unauthorized parties (e.g. hackers)  Loss of trust due to unauthorized activity on customer accounts  Failure to deliver on marketing claims 72
    • 20 10 Tips to SAFE ONLINE Banking • Secrecy of confidential data, like user ID/Password. • Avoid accessing Net banking from cyber cafes. • Files download be done only from trusted sites. • Ensure to log off after use, not just close the browser. • Open only legitimate websites, e-mails,and attachments. • Never disclose personal information like use ID or password in e- mails • Last login and all transactions be checked regularly. • Install latest Internet security suite, and keep it updated • Never try to open the unknown e-mails. • Ensure properly log off the system after use. 21 Phone Banking  This facility was launched 19th March, 2009.  Number of Users Registered as on 31st March, 2010 was – 2,42,770.  The Bank is experiencing per day average hits of about 450.  All Customers (SB,CA,CC,OD,FD, Loan) can get Telephone Personal Identification Number (TPIN) free of cost.  Baroda Connect customers get Phone Banking facility without request.  Customers can dial Toll free number 1800-222-207, give Account Number and TPIN and get information such as – Account Balance Enquiry, – Cheque Status, – Request for Statement through FAX, – Deposit Interest Rates, – Forex rates, 73
    • – Location of Branches  The Product is to be marketed to ALL CUSTOMERS to reduce pressure on Front Liners. 22 Baroda e Tax • Under this facility customer can pay following type of taxes: • Direct Taxes- – Income tax, Gift tax, Wealth Tax, Estate duty – Security transaction tax, FBT,BCTT – Law Garden branch Ahmedabad is focal branch for direct tax for across the country. • Indirect taxes: – Excise duty / Service tax – Custom duty • Pay Gujarat commercial Tax (VAT & CST) • Pay Rajasthan commercial Tax (VAT & CST) • Pay U P commercial Tax 23 Pay UP Commercial Tax • Premium e channel product for UP Baroda connect customers • Customer has to registered with Commercial Tax deptt. (CTD) UP and obtain login id & password • URL for UP commercial tax site is http://comtax.up.nic.in/ • New user can log in with TIN (trader identification no.) and 123 as password & user will be prompted to change the pass word • Next time user will log in with TIN & changed password. 74
    • • In CTD portal customer will input all required information & in banks, select Bank of Baroda • On making the payment thru CTD portal for UP taxes (VAT), user will be redirected to Baroda connect portal. • Customer will sign in to Baroda connect login password & will make the payment with transaction password • On successful payment, customer will get cyber receipt which he can print. 24 Baroda e Trading • It is an on-line share trading facility offered under a tie-up arrangement with M/s India Infoline Ltd. (IIL). • Baroda e-Trading is 3-in-1 integrated account. – One operative account with CBS branch – One DEMAT account either with our Bank (CDSL/NSDL) . – One Trading account with India Infoline Ltd • We should opening of DEMAT accounts for our customers to increase the fee based income 25 Baroda Rapid Fund2India 1. To provide easy and hassle-free money transfer service to Individuals NRIs /PIOs 2. Corporates to remit the fund in India from UK, UAE and Oman (for remitting salary payments to their employees). 3. Where the accounts of the beneficiaries of remittances are maintained with other banks' branches in India, which are RTGS/NEFT-linked, the credits are effected within 24 hours. 75
    • 4. Instant credit to the beneficiary's account with Bank of Baroda branches in India under the CBS network. 5. Same day/within 24-hour credit to the beneficiary's account with branches of other banks in India, which are RTGS-enabled. 6. No minimum/maximum amount for money transfer. 7. Remittances effected in UAE/OMAN on Sunday and other holidays for bank in India will be credited on the next working day. 8. The Branches receiving remittance will print DD in Indian Rupees at Mumbai and delivery of DD at beneficiary's address anywhere in India 9. Easy, hassle free, instant credit to the beneficiary's account with Bank of Baroda's CBS branches in India - with reverse confirmation to the remitter/customer, through the remitting branch. 26 Baroda Remit Xpress • This International Money Transfer Service platform, launched by the Bank in association with Timesof Money.com provides NRIs a unique and robust online remittance solution from USA, UK and Euro Zone. • This online service is bank-neutral, not requiring the remitters and the recipients to have a bank account with the Bank. • This is innovative service from desktop to door step money transfer on 24x7X365. A transaction time of 60 seconds for the remitter and ready fund for the beneficiary. • The delivery mode can be Rupee DD to be delivered to the door-steps through courier or direct credit into beneficiary‟s account with any of our branches. 76
    • 27 Westren Union Money Transfer • Online remittance facility with the help of Western union from abroad to India. • Remittance for the personal use only. • Max. amount $2500 per transaction & 12 transaction per year. • Remitter has to come with photo id & fill receive money form & tender money. • Up to Rs50000/- by cash & above by cheque (both way) 77
    • 78
    • 28 Online RTGS/ NEFT 79
    • • RTGS is a payment system in which payments instructions between banks (inter bank) are processed and settled : – Gross (individually) and Real time (continuously) basis. – Payment so effected are final and irrevocable – Settlement is done in the books of the RBI • IFSC code is required for RTGS transaction. • Minimum amount per transaction is Rs1lac and there is no maximum limit. • Customers can remit money to other Banks at ease without DD/TT. • Under Baroda Connect, Customers can have ONLINE REMITTANCE through RTGS/NEFT. • Customers will have to do- Beneficiary Registration/ Confirmation/ Know IFSC /Make Payment. • Timings, Charges, Limits under RTGS/NEFT are also to be advised to the Customers. • Remittance to Nepal under NEFT through SBI is also available. Particular 2008-09 2009-10 No.of Inward Transcation 3,42,145 6,21,701 8,85,527 15,83,158 No. of Outward Transcation 4,43,353 1,50,081 12,93,970 6,61,923 Avg. Transcation Per Day 1,133 2,029 2,901 5,277 Inward Avg. Transaction Per day 1,468 497 4,303 2,206 Outward 80
    • ASSETS 81
    • 29. Assets  Total assets increased by 26.66% to Rs. 2.27 bn at year-end fiscal 2009 from Rs. 1.79 bn at year-end fiscal 2008.  Total investments at year-end fiscal 2009 increased by 19.5%.  Increase in investment in Govt securities and Debentures and Bonds in the fiscal year 2009.  While there has been an decrease in investment in Shares and Other approved securities.  The Cash balances have increased from Rs 93697.23 mn in the fiscal year 2008 to Rs 10593.43 mn in the fiscal year 2009.  The balances with RBI in Current Account has also increased .  There has been an increase in deposit outside India in the form of Bank balances and Money at call from Rs 86020.43 mn in the fiscal year 2008 to Rs 120873.58 mn in the fiscal year 2009.  Increase in net advances by 34.9% to Rs. 1.43 bn at year-end fiscal 2009 from Rs. 1.067bn at year-end fiscal 2008 due to increase in advances inside and outside India. 82
    • 29.1 Non-Performing Assets Under the RBI guidelines, an asset is classified as non-performing if any amount of interest or principal remains overdue for more than 90 days, in respect of term loans. In respect of overdraft or cash credit, an asset is classified as non-performing if the account remains out of order for a period of 90 days and in respect of bills, if the account remains overdue for more than 90 days. Based on the criteria stipulated by the RBI NPAs are classified into:  Sub-standard,  Doubtful and  Loss assets. Advance 31st March Percentage 31st March Percentage Category 2009 of Total 2008 of Total (Gross) Standard 143001.94 98.73 105690.44 98.16 Loss 345.34 0.24 366.12 0.34 Doubtful 832.32 0.57 887.65 0.82 Sub Standard 665.26 0.46 727.61 0.68 Gross NPA 1842.92 1.27 1981.38 1.84 Total 144844.86 100 107671.82 100 83
    • 30. LIBILITIES Capital & Liabilities Capital 1 365,52,77 365,52,77 Reserves & Surplus 2 124700135 10678,39,91 Deposits 3 1923969517 152034,12,72 Borrowings 4 5636,08,59 3927,04,80 Other Liabilities & 5 16538,14,66 12594,41,42 Provisions Total 227406,72,54 179599,51,62 84
    • 30.1Capital As on 31st March, 2009 As on 31st March, 2008 Rs. Rs. Rs. Rs. AUTHORISED CAPITAL 150,00,00,000 Equity Shares of Rs.10/- 1500,00,00 1500,00,00 each ISSUED & SUBSCRIBED CAPITAL 36,70,00,000 Equity Shares of Rs.10/- 367,00,00 367,00,00 each (previous year 36,70,00,000/- equity shares of Rs. 10/- each) 36,42,66,500 (Previous Year 364,26,65 364,26,64 36,42,66,400) Equity Shares of Rs.10 each including 19,60,00,000 Equity Shares (Previous year 19,60,00,000 Equity Shares) amounting to Rs.196 crores held by Central Government Add: Forfeited Shares 1,26,12 1,26,13 TOTAL 365,52,77 365,52,77 85
    • 30.2RESERVE & SURPLUS increase16.77% As on 31st March, 2009 As on 31st March, 2008 Rs. Rs. Rs. Rs. Opening Balance 2230,37,10 1871,49,06 Additions during the year 556,80,05 2787,17,15 358,88,04 2230,37,10 II Capital Reserves (including revaluation reserve) Opening Balance 1789,93,47 402,19,30 Additions/ Adjustments during the year * 362,05,56 85,07,80 * [After adjustment of Exchange fluctuation 2151,99,03 487,27,10 Rs.(37998)(Previous year 4295)] Additions during the year on account of - 1377,74,38 revaluation of properties Deductions: Depreciation on revalued fixed assets 72,40,75 2079,58,28 75,08,01 1789,93,47 transferred to Profit & Loss account III Share Premium Opening Balance 2273,88,53 2273,88,43 Additions/Adjustments during the year 3 2273,88,56 10 2273,88,53 IV Revenue & Other Reserves a) Statutory Reserve (Foreign) Opening Balance 74,60,02 77,58,50 Additions during the year 1,17,48 70,30 Other Adjustments 16,57,63 -3,68,78 92,35,13 74,60,02 b) Special Reserve u/s 36(1)(viii) of Income Tax Act Opening Balance - - Add: Transferred from General Reserve 200,00,00 - Add: Additions during the year for FY 2008-09 220,00,00 - 420,00,00 - c) Other Reserves Opening Balance 4309,60,79 3659,25,71 Transferred to Special Reserve u/s 36(1)(viii) 200,00,00 - for F.Y 2007-08 Additions/Adjustments during the Year 707,41,44 650,35,08 4817,02,23 4309,60,79 TOTAL - IV (a, b & c) 5329,37,36 4384,20,81 TOTAL (I to IV) 12470,01,35 10678,39,91 86
    • 30.3 DEPOSITES increase 26.54% As on 31st March, 2009 As on 31st March, 2008 Rs. Rs. Rs. Rs. A. I Demand Deposits i) From Banks 682,99,04 616,16,58 ii) From Others 13768,23,44 14451,22,48 11079,83,97 11696,00,55 II Savings Bank 42487,27,78 35776,38,18 Deposits III Term Deposits i) From Banks 16887,48,83 13416,55,88 ii) From Others 118570,96,08 135458,44,91 91145,18,11 104561,73,99 TOTAL (I to III) 192396,95,17 152034,12,72 B. I Deposits of 151408,98,64 122479,35,32 branches in India II Deposits of 40987,96,53 29554,77,40 branches outside India TOTAL (I & II) 192396,95,17 152034,12,72 87
    • 30.4 Borrowings increase 43.51% As on 31st March, As on 31st March, 2009 2008 Rs. Rs. Rs. Rs. Borrowings in India i) Reserve Bank of India 2700,00,00 ii) Other Banks 17,17,26 18,57,54 iii) Other Institutions and 442,94,17 670,56,83 Agencies TOTAL 3160,11,43 689,14,37 Borrowings outside India 2475,97,16 3237,90,43 Total - Borrowings 5636,08,59 3927,04,80 Secured Borrowings included in 242,94,17 740,22,47 above 88
    • RATIO ANALYSIS 89
    • 31.1 Key Financial Indicators - Profitability Ratios Sr. No. Particulars 31.03.2008 31.03.2009 1 Interest Income / Average 7.63% 7.78% Working Funds (AWF) 2 Interest expenses / AWF 5.10% 5.14% 3 Net Interest Margin 2.90% 2.91% 4 Interest spread / AWF 2.53% 2.64% 5 Non-Interest Income / AWF 1.32% 1.42% 6 Operating expenses / AWF 1.96% 1.84% 7 Cost Income Ratio 50.89% 45.38% 8 Gross (Operating) profit / 1.89% 2.22% AWF 9 Net profit / AWF 0.93% 1.15% 10 Return on Net Worth 15.07% 19.56% 11 Return on Assets 0.80% 0.98% 12 Return on Average Assets 900.89% 1.09% 13 Yield on Advances 9.53% 9.50% 14 Cost of Deposits 5.69% 5.71% 15 Dividend payout Ratio 23.75% 17.22% (including Corporate Dividend Tax) 16 Credit -- Deposit Ratio 77.32% 82.36% 17 Credit + Non SLR Investment 82.78% 87.86% (excluding Investments in Subsidiaries) -- Deposit Ratio 18 Capital Adequacy Ratio 12.91% 12.88% Tier – I 7.63% 7.79% Tier – II 5.28% 5.09% 90
    • Analysis:  Bank‟s Cost income ratio decreased to 45.89% from previous yrs 50.89% highlighting that banks costs are rising but its interest income are rising at a higher rate.  There is a increase in return on asset depicting that assets were more efficiently employed in 08when compared to 09. 31.2 Key Financial Indicators - Efficiency Ratio Sr. Particulars 31.03.2008 31.03.2009 No. 1 Employees (number) 36774 36838 2 Branches (number) 2899 2974 3 Business per employee (Rs. in crore) 7.04 9.13 4 Average Business per employee (Rs in 5.94 7.57 crore) 5 Gross Profit per employee (Rs. in 7.96 11.69 lakhs) 6 Net Profit per employee (Rs. in lakhs) 3.90 6.05 7 Business per branch (Rs. in crore) 89.25 113.11 8 Gross Profit per branch (Rs. in crore) 1.01 1.45 9 Net Profit per branch (Rs. in crore) 0.50 0.75 10 Earnings per share (Rupees) 39.40 61.14 11 Book Value per share (Rupees) 261.54 312.61 91
    • 31.3 ASSET QUALITY RATIO 2009 2008 NPA Coverage 75.52% 69.25% Total Capital Adequacy Ratio 12.88% 12.91% Interest Income to AWFs 7.78% 7.63% Net NPAs to net advances .31% .47% ANALYSIS  The Bank delivered a stellar performance in asset quality management in 2009 despite a severe industrial slowdown.  Through well coordinated and sustained efforts, the Bank‟s Global Gross NPA level was brought down from 0.47% to 0.31% in the course of one year.  Not not only the Gross NPA and Net NPA were brought down in percentage terms but were also reduced in absolute terms to Rs 1,842.92 crore and Rs 451.15 crore as at end-March, 2009 from the opening portfolio of Rs 1,981.38 crore and Rs 493.55 crore respectively. 92
    • 32 Performance Highlights:  Total Business (Deposit+Advances) increased to Rs 3,36,383 crore reflecting a growth of 30.01%.  Gross Profit and Net Profit were Rs 4,305.01 crore and Rs 2,227.20 crore respectively. Net Profit registered a growth of 55.2% over previous year.  Retail Credit posted a modest growth of 16.3% constituting 17.8% of the Bank‟s Gross Domestic Credit in FY09.  Net Interest Margin (NIM) as per cent of interest earning assets was at the level of 2.91%.  Net Worth improved to Rs 11,387 crore registering a rise of 19.52%.  Book Value improved from Rs 261.54 to Rs 312.61 on year.  Business per Employee moved up from Rs 710 lacs to Rs 914 lacs on year. 33 Findings & Suggestion: 93
    • During My Tranning I observed several problem being faced by ATM Card holders and other customers of the Bank. Which can be Categorised as below: a. The customer has lost the card but due to ignorence has failed to get it blocked. Hence in certain cases the lost card was used by unscrupules person for purchasing Petrol etc. b. In very many- many cases while using the ATM card. The transacation took place without dispensing the money. c. Quite often the card entangles in ATM machine and the customer gets neither money nor the card. Moreover the Branch Issues the ATM cards promptly and intimate the customers on their mobile, but in very many-many cases customers fail to turnup and collect their cards. Which creates the big problem for the Bank to store and maintain their methodical iteneary. Further I observed that because of acute dearth of staff in the Bank. The above mention problems are not being attended swiftly. One staff/ officer is essentialy required to handel the said problems, which the Bank is unabel to affored presently. 34 Conclusion: 94
    • Everyone is aware that in the present social milieu more & more people are using and becoming dependent on technology. While recapitulating my project which is based on technology related to banking‟s Net-Technology i.e. ATM & Internet banking. It is observed that there are very many advantages & something few disadvantage also, which may be phased out with coming developments. As far as advantages are concerned customers using ATM & Net-Banking are getting fast & superior services. Which saves their time & energy. Simultaneously cases of fraud & phising e-mails are some disadvantages which hopefully may be countered in future. 35. BibloGraphy: 95
    • www.bankofbaroda.com www.Nse-India.com www.scribd.com www.wikipedia.com Different News Papers Magzines Journols etc. 96