AML - Anti Money Laundering

It is conversion of money, which is illegally obtained, so as to make it appear to originate from a
legitimate source. The main objective of the Act is:
1. To prevent, combat and control money laundering.
2. To confiscate and seize the property obtained from the laundered money.
3. To deal with any other issue connected with money laundering in India.

There are three independent steps or stages in Money Laundering -- Placement, Layering and
Integration

A) Placement - physical disposal of bulk cash proceeds derived from illegal activity

B) Layering - process of separation of illicit proceeds from their source by creating complex layers of financial transactions it conceals the audit trail.

C) Integration– re-injection of laundered proceeds back to the economy

Punishment:

Whoever commits the offence of money laundering shall be punished with the rigorous
punishment for a term not less than 3 years but which may extend to 7 yrs and shall also
liable to fine, which may extend to Rs.5 lacs.

Revised policy on KYC/AML/PMLA policy Norms for furnishing proof of address have been relaxed to allow submitting only one documentary proof of address ( either current or permanent) while opening a Bank account or while undergoing periodic updation. In case the proof of address where the customer is currently residing , the bank may take a declaration of the local address. No proof is required to be submitted for such address for correspondence/ local address.

Read More

Credit Information Bureau (India) Limited – (CIBIL)

1. Credit Information Bureau (I) Ltd was set -up in January 2001, as a joint venture.

2. CIBIL is a composite Credit Bureau, which caters to both commercial and consumer segments. The Consumer Credit Bureau covers credit availed by individuals while the Commercial Credit Bureau covers credit availed by non-individuals such as partnership firms, proprietary concerns, private and public limited companies, etc.

3. CIBIL is established with a primary purpose of information sharing between Banks and Financial
Institutions for curbing the undesired growth of NPA.

4. Banks are required to provide periodical information to CIBIL in the prescribed format. It helps in
compilation of credit information, accessible to member banks to improve quality of credit proposals,
better credit management and Credit dissemination function

5. Banks, FIs, SFCs, NBFCs, Housing Finance Companies and Credit Card Companies are Members of CIBIL

6. CIBIL- Access to consumer credit information:

Branches will get data of existing standard Home Loan borrowers who have approached other Banks
for Home Loan, Personal Loan Auto Loan, Education Loan, Business Loan, Property Loan, Over Draft and Commercial Vehicle. In case of NPA Home Loan borrowers Branches will get information on enquires with other Banks for all type of loans.

Read More

ASBA (Application Supported by Blocked Amount)

ASBA is a process developed by the Securities and Exchange Board of India (SEBI) for applying to IPO. In ASBA, an IPO applicant's account doesn't get debited until shares are allotted. Qualified Institutional Buyers (QIBs) are not allowed to participate in IPOs through ASBA facility.

ASBA process facilitates retail individual investors bidding at cut-off, with single option, to apply through Self Certified Syndicate Banks (SCSBs), in which the investors have bank accounts. SCSBs are those banks which satisfy the conditions laid by SEBI. SCSBs would accept the applications, verify the application, block the fund to the extent of bid payment amount, upload the details in the web based bidding system of NSE, unblock once basis of allotment is finalized and transfer the amount for allotted shares, to the issuer.

ASBA means “Application Supported by Blocked Amount”. ASBA is an application containing an authorisation to block the application money in the bank account, for subscribing to an issue. If an investor is applying through ASBA, his application money shall be debited from the bank account only if his/her application is selected for allotment after the basis of allotment is finalized, or the issue is withdrawn / failed.

It is a supplementary process of applying in Initial Public Offers (IPO), right issues and Follow on public offers (FPO) made through book building route and co-exists with the current process of using cheque as a mode of payment and submitting applications.

Read More

Baroda Connect - Alternate Delivery Channel

Baroda Connect, an internet banking product of Bank of Baroda, is the very important alternate delivery channel (ADC). This also facilitates the customers to enjoy various banking services from the ease of their house /shop/company or anywhere having internet connectivity, hence, in limited sense, we may call it as “Mini Extension Counter” of the Bank. In today’s buyers’ market, where “Customer is the King” and each and every service industry including banking, are hovering around the centre point – CUSTOMERS, such a unique service is extremely desired by the customers at large, especially by Gen-Next customers and it also proves the concept of internet as www (“win-win-win” situation for the Customers, Bank & Employees).

Benefit to the Customers:

·         24x7x365 access (even no effect of Sundays, Holidays & Strikes)

·         Time Saving

·         Substitute of Q-culture

·         Transparency & Trust

·         Available in other territories

·         Remittances to other Banks

·         Transfer of funds within Bank at no cost (without ‘Inter-SOL Charges’)

·         Various ancillary services viz. e-pay, e-ticketing, utility bill payment

·         Various other facilities at free of cost

·         Special limit for Transfer of funds within Bank may be considered

Unique Features of Baroda Connect:

In today’s intensive banking scenario, almost all banks are providing internet banking facility and services provided are also more or less same. But, our SBI internet banking and Baroda Connect is having two very unique features –

 first, transaction of future date can be scheduled well before and

 second, multiple-users, with Maker-Checker facility, can be set in any Corporate User A/c.

Banking system thrives on customers’ stake / confidence reposed, hence, a safe & qualitative customer service provided by the Bank is the pre-requisite for placing itself as ‘preferred position’ in the market.

Hence, for enjoying safe, comfortable and trustworthy internet banking by our customers/users, our Bank has taken following initiatives:--

·         Awareness message on Home Page from phishing, vishing, mishing etc. attacks.

·         Awareness creation by the branches to their users through various methods.

·         Provision of “Virtual Keyboard” for entering Sign-on password.

·         Provision of two different passwords - for Sign-on & for Transaction.

·         Additional safety measure by disabling ‘Transaction Password’ if not used for 90 days, so that chances of misuse due to unvigilant actions of customers could be eliminated.

·         Sending SMS about transactions, on registered mobile phone to facilitate the users for early access of genuineness of transactions.

·         Daily / Weekly ceiling on transaction amount so that any unauthorized person cannot make big damage to our users at once and subsequently, genuineness of transaction can be established by the user, through receiving SMS and if it is unauthorized, necessary steps may be taken at the earliest.

·         Third party / Inter-bank fund transfer only after Registration by the user.

·         Only -2- Beneficiaries can be registered on a day

·         Fund can be remitted only after 24 hours of registration of the beneficiary.

·         Fraud Management Services (FMS) has been implemented as additional safety measure.

·         OTP Facility is providing additional safety.

Services offered to Retail Customers

·         Balance enquiry in Operative account, Deposit accounts and Loan accounts.

·         Stop payments of cheques

·         Tax Deduction Enquiry

·         Account summary – summary of all operative, deposit and loan accounts

·         Fund transfer to Self / linked account and Third party fund transfer.

·         Fund transfer and NEFT can be scheduled for a future date.

·         Request for cheque book, fixed deposit renewal, Switch Mailing address, account opening for CBS and e-banking.

·         Profile – customer can change his profile and change his password.

·         Activity history – Customer can get details of all the activities carried out by bank.

·         Modeling – Customer can model deposit / loan schemes of the bank and know about likely maturity value, if he invests or likely EMI if he takes loan, etc.

·         ASBA facility

·         School Fee options

·         Bill payment option

·         Facility of IMPS for instant Inter/Intra Bank fund transfer through  Baroda Connect (Facility is available only to mobile banking customers)

·         Online Fixed Deposit opening facility

·         Online RD account opening facility

·         Online Gift card request facility

·         View and crediting in existing PPF accounts

·         Aadhaar number linking with operative accounts

·         Opening of Pradhan Mantri Jiban Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana

Services offered to Corporate Customers

·         All facilities mentioned under Retail Customers

·         Approvals – For corporate customers, there can be involvement of multiple users for transfer of funds / payment of bills, etc and Baroda connect allows multiple users to log in and initiate / approve the transactions, as per powers delegated by the corporate to their users.

·         Trade Finance queries relating to– Import/Export, Inland Trade, B.G., Forward Contract.

·         Direct Salary upload facility.

Limit for transactions

Retail customers can have maximum -5- transactions/day. But in case of Corporate customers, there will not be any restrictions on the Number of Transactions per day. The limit for corporate customer can be increased on the request of the customer and recommendation of the concerned branch.

Limit for Fund transfers under Baroda Connect

(Amount in Rupees)

Financial Transaction Limit for Retail Customers
Particulars	Self linked Account	Third party/ Shopping Mall/Bill payment	Online NEFT/RTGS
Per TXN	Unlimited	2,00,000	5,00,000
Daily	Unlimited	4,00,000	10,00,000
Weekly	Unlimited	12,00,000	30,00,000
Monthly	Unlimited	30,00,000	50,00,000
Yearly	Unlimited	1,50,00,000	4,00,00,000

(Amount in Rupees)

Financial Transaction Limit for Corporate Customers
Particulars	Self linked Account	Third party/ Shopping Mall/Bill payment	Online NEFT/RTGS
Per TXN	Unlimited	5,00,000	10,00,000
Daily	Unlimited	15,00,000	50,00,000
Weekly	Unlimited	45,00,000	2,00,00,000
Monthly	Unlimited	1,00,00,000	5,00,00,000
Yearly	Unlimited	6,00,00,000	30,00,00,000

* There is NO LIMIT on transfer of funds between self linked accounts within Bank of Baroda for Retail Users

Toll free number is – 1800222227

for more visit official site of Bank of Baroda

Read More

Letter Of Credit (LC)

A letter of credit (LC) can be define as a signed or an authenticated instrument issue by the buyer's banker, embodying an undertaking to pay to seller a certain amount of money, upon presentation of documents, evidencing shipment of goods, as specified and compliance of other terms and conditions.

In other words an LC is an undertaking issued by bank, on behalf of the importer or the buyer, in favour of exporter or the seller.

So if the specified documents, showing that a shipment has taken place, or a service has been supplied, are presented to the issuing bank or its nominated bank, within the stipulated time, the exporter/seller will be paid the amount specified.

Following parties are involved in LC transaction -
1. The buyer/Importer/Applicant - on whose behalf LC is opened
2. The Seller/Exporters - Beneficiary of LC
3. The Opening/Buyer bank - Who establishes the LC
4. The Advising bank (in seller country) - Agent of issuing bank & authenticate the LC
5. The confirming Bank - who undertake to pay on behalf of the issuing bank.
6. The negotiating bank - seller bank or bank nominated by the opening bank.
7. The reimbursing bank - who reimburses the negotiating or confirming bank.  

Note: Advising bank, Confirming bank & Negotiating bank could be the same.

Types of Letters of Credit:

1. Revocable LC
LC which can be amended or cancelled at any moment by the issuing bank without the consent of any other party
Value of this LC is limited & very rarely issued.

2. Irrevocable LC
Which hold the commitment by the issuing bank to pay or reimburse the negotiating bank, provide conditions of the LC are complied with.
Can't be cancelled without previous consent of all parties.
Unconditional undertaking
All LCs issued, unless and otherwise specified.

3. Irrevocable confirmed LC
Which has been confirmed by a bank, other than the issuing bank, usually situated in the country of exporter

4. Transferable LC
LC which is available for the transfer in full or in part, in favour of any party other than the beneficiary, by the advising bank at the request of the issuing bank.
Here more than one second beneficiary, but such second beneficiary can't transfer to another third party.

5. "Red clause" LC
LC enable the beneficiary to avail pre-shipment credit from the nominated/advising bank.
Such LC bears a "Red Letter" authorizing the nominated bank to grant advance to beneficiary, prior to shipment of goods.

6. Sight LC
The beneficiary is able to get the payment on presentation of document confirming to the term and condition of LC at the nominated bank counters.

7. Acceptance Credit LC
Bill of exchange or draft, Payable upon acceptance, at the future date, subject to receipt of document confirming to the term and conditions of LC.

8. Deferred payment LC
 Similar to acceptance credit, except that there is no bill of exchange or draft

9. Negotiation Credit LC
Issuing bank undertake to make payment to the bank, which has negotiated the document.

10. Back to back LC
When an exporter arranges to issue an LC in favour of local supplier to procure goods on the strength of export LC received in his favour.

Read More