Consolidation of Policies of Operation Divisions (2024-2024)

This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) FOR INTERNAL CIRCULATIONS ONLY CONSOLIDATION OF GIST OF POLICIES OF OPERATION DIVISIONS TILL 22092...

This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) FOR INTERNAL CIRCULATIONS ONLY CONSOLIDATION OF GIST OF POLICIES OF OPERATION DIVISIONS TILL 22092024 This Booklet consist of GIST of Total 10 policies as noted below: 1. Record Maintenance policy (OPERATIONS DIVISION (GENERAL BANKING) CIRCULAR NO. 17/2024 dated 20/03/24) 2. POLICY FOR DISHONOUR OF CHEQUES AND NACH (NATIONAL AUTOMATED CLEARING HOUSE) MANDATES (OPERATIONS DIVISION (GENERAL BANKING) CIRCULAR NO. 16/2024 dated 20/03/2024) 3. POLICY FOR KNOW YOUR CUSTOMER (Operations Division (KYC Section) Circular No. 05/2024 dated 21/03/2024) 4. POLICY FOR COLLECTION OF CHEQUES AND INSTRUMENTS FOR THE YEAR 2024-25 (CUSTOMER CARE CENTRE CIRCULAR NO. 16/2024 dated 18/04/2024) 5. CUSTOMER RIGHTS POLICY FOR THE YEAR 2024-25(CUSTOMER CARE CENTRE CIRCULAR NO. 17/2024 dated 18/04/2024) 6. POLICY FOR GENERAL MANAGEMENT OF BRANCHES FOR THE YEAR 2024-25(CUSTOMER CARE CENTRE CIRCULAR NO. 18/2024 dated 18/04/2024) 7. CUSTOMER COMPENSATION POLICY FOR THE YEAR 2024-25(CUSTOMER CARE CENTRE CIRCULAR NO. 19/2024 dated 18/04/2024) 8. GRIEVANCE REDRESSAL POLICY FOR THE YEAR 2024-25 (CUSTOMER CARE CENTRE CIRCULAR NO. 20/2024 dated 18/04/24) 9. DOORSTEP BANKING SERVICES POLICY FOR THE YEAR 2024-25(CUSTOMER CARE CENTRE CIRCULAR NO. 22 /2024 dated 18/04/2024) 10. POLICY OF GOVERNMENT BUSINESS DIVISION (OPERATIONS) FOR FY 2024-25(GOVERNMENT BUSINESS DIVISION CIRCULAR NO. 95/2024 dated 25/06/2024) CONSOLIDATION OF GIST OF POLICIES OF OPERATION DIVISIONS TILL 22092024 1  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) RECORD MAINTENANCE POLICY (OPERATIONS DIVISION /GENERAL BANKING CIRCULAR NO. 17/2024) Date: 20/03/2024  Objective: The objective of the policy would be as under: Preservation of records in an efficient, secured and cost-effective manner so that identification and retrieval of records by branches/ offices of the Bank are facilitated to meet their operational, business, legal, statutory and decision/policy making requirements in the course of their pursuit of the Bank's mission.  For destruction of records upon expiry of the period prescribed in the policy statement, control measures include authorization and approval prior to destruction establishment of procedures for destruction of electronic media like tapes, floppies, etc., as per the Bank’s Information Security Policy. The respective offices of the Bank shall maintain record in the registers giving details of the documents in paper / electronic other form destroyed, along with the date and means of destructions.  HO ITD shall preserve permanently in electronic form, the details of all accounts and transactions, in respect of which amount has been transferred to DEAF. When the amount is refunded from the fund, thereafter record will be preserved for minimum five years  Physical documents may be digitized to protect them from the risk of damage or destruction, which may result in the loss of the record. Further, digitization may be an effective way to maintain and manage physical documents.  “marginalia” (handwritten notes or additions to the content of the document).  DIGITAL STORAGE In our Bank, a Document Management System (DMS) consists of two modules – (Omniapp) module which is already being used across the Bank for Account Opening Process and DMS Document Digitization (Omnidocs) module, is already functional. Omnidocs is a Unified repository for documents and folders across the organizations including electronic files, paper images, and scanned documents. In this documents shall be saved in a unified repository and can be retrieved through various search methods. Branch/ offices, requiring e- records for perusal, have to quote the unique record identifiers for retrieval of records. Only authorized Officers shall be able/shall have access to retrieve the old records  Only those branches/offices located in Metro/Urban areas are authorized/entitled to send the records to Record Keeping Agencies. In case of exceptional requirement CGM/GM, GSAD may be authorised to give permission on case to case basis in areas other than metro/urban.  Records related to a particular period will be sent to record keeping agencies only after the closing of one Inspection Report (IR) of the branches/offices. Thereafter only those records which are having life span of more than 3 years as per maintenance policy of the Bank can be sent to Record Keeping Agencies. All other records will be kept and periodically destroyed at branches /offices level. For sending of records a format has been formulated for categorization of records containing mandatory fields like description of records, number of files/cartoons, time period & expiry date of documents, etc., which will result into easy retrieval & destruction of record.  Following will be the Officials who are authorized to permit to send records to record keeping Agencies: a) Dy. Circle head for Circle office and Branches/offices in the jurisdiction of Circle. b) DGM/AGM-In charge of GSAD in Zonal Offices and offices under Zonal Office. c) AGM/Chief Manager of the divisions in HO. d) Vertical Heads in case of verticals. e) Incumbents in other offices (In case offices are headed by GM/DGM, official may be nominated having rank not below scale IV). One official (Nodal officer) to be nominated to keep record of Retrieval and Sending of Old records. Proper register to be maintained for monitoring purpose of the same. Record Maintenance policy 1  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem)  Branches/offices in which are having carpet area in excess of 50% as per area norms of Bank are not eligible to shift the record to record Keeping Agencies. Zonal Manager shall be empowered to allow Branches/offices to shift records in case to case basis where Carpet area is more than 150% subject to the condition defined in SOP.  Periodicity of inspection of Document Storage Centre will be done by a team once in half year which should be carried out by a team of at least 3 members comprising representative from GSAD, Security/Fire Officer and other section of Circle Office. Gap between two inspections should not be more than 6 months in a Financial Year and the inspection report of the team of bank officials will be checked by IAD division during the annual inspection. If Security/fire officer is not posted in CO/ZO then officer who looks after security / fire safety duties will be deputed.  Zonal Office/ Circle Office under whose Jurisdiction the storage facility is located is responsible to conduct the inspection. Where multiple Circle offices are present in a centre, Zonal office will decide the Circle office who will conduct the inspection  Amount earned from the destruction shall be credited to bank’s account in the head of “Miscellaneous Income”. The service provider who is carrying out the destruction activity will provide transport, labour and other necessary support.  Amount earned from the destruction shall be credited to bank’s account in the head of “Miscellaneous Income”. The service provider who is carrying out the destruction activity will provide transport, labour and other necessary support.  ‘Record Maintenance’ (A), ‘Digitization of Physical Records’ (B) & ‘Keeping of Bank’s Physical records with outside agency’ (C). Chapter A & B shall be reviewed by Control Cell under HO: Operations Division and chapter C (Keeping of Banks’ Physical Records with outside agency) along with operational guidelines shall be reviewed by HOGSAD. OPERATION GUIDELINES:  E’ MARKED RECORDS ARE BEING KEPT IN ELECTRONIC FORM RECORDS TO BE PRESERVED FOR SIX MONTHS (E) 1. Files relating to Staff Statements (E) 2. Files relating to records, documents and clippings that provide data, information, research reports, etc., and contain correspondence with regard to general market conditions on particular securities / investments 3. Files of arrival and departure reports of regular inspectors / agriculture officers 4. Files relating to statement of labour situation 5. Files relating to monthly statement of warehouse receipts 6. Files relating to half-yearly statement of safe deposit vaults 7. Files relating to quarterly statement of credit facilities 8. Files relating to copies of quarterly statement of secured and unsecured advances sent to RBI by branches 9. Files relating to statement relating to LC, FIBNLC 10. Files relating to statement of sugar mill accounts 11. Files relating to statement of advances to SSI / SME / guaranteed by RBI / DICGC /CGFT 12. Files relating to statement of export loans RECORDS TO BE PRESERVED FOR ONE YEAR (Call money (lending/Borrowing ledger in electronic form) Record Maintenance policy 2  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) RECORDS TO BE PRESERVED FOR 2 YEARS (training files in Electronic form) RECORDS TO BE PRESERVED FOR 3 YEARS(lead bank schemes files & database of complaints Electronic mode) Record Maintenance policy 3  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) Attendance Register / Bankers’ Statement Register /Monthly Revenue Statements FOR TREASURY DIVISION ELECTRNIC E LIST REFER CIRCULAR IF REQUIRED RECORDS TO BE PRESERVED FOR 5 YEARS Non-financial sanctions / approvals by competent authorities Correspondence / files relating to claim of hospitalization / medial aid and related registers / ledgers. Record Maintenance policy 4  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) Register of figures Miscellaneous Sanction / Approval register / file Test Checking Record (Printing and Stationery Department) Job Order (Printing and Stationery Department) Record of Receipt & Disposal of Applications received under Right to Information Act, 2005, Applications received under the Act, copy of Approvals and Orders of Central Public Information Officer / Appellate Authority of Bank. (Record to be preserved from the date of Orders of Appellate Authority of Bank) Statement of Legal Settlements, insurance claims (For capital calculation under BIA & TSA) Records of the Division in accordance to various Laws and Regulations in respect of Know Your Customer (KYC) Norms / Anti-Money Laundering (AML) Standards / Combating the Financing of Terrorism (CFT) / Obligation of Authorised Persons under Prevention of Money Laundering Act (PMLA), 2002 – “Money Changing Activities. RECORDS TO BE PRESERVED FOR 6 YEARS Record Maintenance policy 5  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) RECORDS TO BE PRESERVED FOR 7 YEARS 1. Register for reimbursement of written off claims 2. Register for recovery of written off cases 3. File of written off cases statement sent to RBI 4. Records relating to CBI Cases / Police Cases/ Labour Court Cases/ CONSUMER FORUM / Arbitration / Cases registered with CVO / CVC, etc., where a legal dispute /case / arbitration has been finally settled 5. MOC Statement related to Revenue (Income for CAPITAL Calculation under TSA) RECORDS TO BE PRESERVED FOR 8 YEARS TREASURY DIVISION: refer circular if required RECORDS TO BE PRESERVED FOR 9 YEARS Long books/Daily Extracts /Day BooK RECORDS TO BE PRESERVED FOR 10 YEARS Loan follow up files Stamp Balance Book Weekly Statement of Affairs Book Return / data / forms sent to RBI / Ministry of finance CORD, CORDUP, CANE below 10000 (Pertaining to Loss Data) PNB 1157, PNB 1158 Registers (Pertaining to Loss Data) Auditors’ Certificate (Concurrent / Regular Inspector MARD / Statutory Auditors) on Loss Data RECORDS TO BE PRESERVED FOR 12 YEARS Record Maintenance policy 6  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) RECORDS TO BE PRESERVED FOR 15 YEARS RECORDS TO BE PRESERVED FOR ALL TIMES Circulars issued register / circulars file Manuals / Book of Instructions / Codified Circulars Balance Sheets of the subsidiaries / Regional Rural Banks sponsored by the Bank /Trusts, etc., of the Bank Circulars / guidelines received from (a) Indian Banks’ Association, (b) Reserve Bank of India, (c) Government of India, (d) Foreign Exchange Dealers’ Association of India, (e) Export Credit Guarantee Corporation, (f) Securities and Exchange Board of India and (g) any other statutory authority along with the related Compliance Reports / Correspondence Record Maintenance policy 7  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) Notes placed to ORMC, Minutes of ORMC Meetings, Notes placed to Board including Background Papers & Centralised Loss Database created at ORMD (For IRMD) Minutes Book of Directors. /Provident Fund Day Book/Provident Fund Investment Register. Trustees’ Minutes Books /Investment Registers /Register for Power of Attorney, Succession Certificates, Death Certificates, etc. /Office Order Book /Pre- migration Data Backup (Physical). /User Identification Register. Specimen Signatures of Foreign Bank Officials (to be destroyed within 6 month after new book is received) Parameter/Master modification Register FOR SHARES DEPARTMENT: Documents whose preservation shall be permanent in nature: Documents/records related to accounts, secretarial department: Record Maintenance policy 8  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) RECORDS TO BE PRESERVED TILL THE LOAN IS ADJUSTED: PF Loan application –Refundable and Non-Refundable RECORDS TO BE PRESERVED TILL EXECUTION OF FRESH LEASE DEEDS: Files relating to premises/Capital Account-Lease deed, etc., of rented buildings SCHEDULES OF BOOKS AND FILES, WITH THE PERIOD, FOR WHICH THESE MUST BE RETAINED ON RECORD AT BRANCHES, WITH THE PERIOD FOR WHICH THESE MUST BE RETAINED ON RECORD (PERIOD TO BE COUNTED FROM THE DATE OF THE LAST ENTRY IN THE BOOK OR FILE, IF NOT INDICATED OTHERWISE IN THE SCHEDULES): RECORDS TO BE PRESERVED FOR 1 YEAR  Bills Diary (E)  Cash Reserve Register  Cashier’s Long Book  Daily Market Rates Register  Fixed Deposit Due Date Register (E)  Key Coffer Register – For Locker E  Premium Receipt counterfoils of the Life Insurance Corporation of India  Register of Statement of Accounts 09 Banker’s Statement of Account Files  Reserve Bank of India Statement File  Diary for reminders  Duplicate / Photocopy of Account Opening Form at Back Office / E-bay (From the date of opening of account RECORDS TO BE PRESERVED FOR 2 YEARS 01 Fire Insurance Policies (lapsed and no claim thereto is outstanding / under dispute) File 02 Due Date Diary of Locker Rents E 03 Files containing Certificates of Posting and Receipts for Registered Letters RECORDS TO BE PRESERVED FOR 3 YEARS Record Maintenance policy 9  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem)  Concurrent Auditor’s Report.  Bill realization letters received from collecting Bankers/ Branches  Reconciliation sheets E  GR/SBF/EP/PP/SOFTEX Form Register/ System generated Hard Copy E  Records relating to transactions which are in dispute.(After closure of issue)  Complaint Files (after redressal / dropping / final reply) and Complaint Register/ File RECORDS TO BE PRESERVED FOR 5 YEARS  Service Charges/ Commission file  General Charges Register  Media in use / corrupted register  Password change register  Record of all transactions in respect of CTRs / STRs / CCRs, Alerts, etc., and related Correspondence, as may be prescribed by Bank from time to time towards compliance of Know Your Customer (KYC) Norms / Anti-Money Laundering (AML) Standards / Combating the Financing of Terrorism (CFT) / Obligation of Authorised Persons Record Maintenance policy 10  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) under Prevention of Money Laundering Act (PMLA), 2002 – “Money Changing Activities” & KYC / AML / CFT Policy of Bank RECORDS TO BE PRESERVED FOR 6 YEARS RECORDS TO BE PRESERVED FOR 7 YEARS Records relating to CBI Cases / Police Cases/ Labour Court Cases/ CONSUMER FORUM / Arbitration / Cases registered with CVO / CVC, etc., where a legal dispute /case / arbitration has been finally settled RECORDS TO BE PRESERVED FOR 8 YEARS Record Maintenance policy 11  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) RECORDS TO BE PRESERVED FOR 9 YEARS RECORDS TO BE PRESERVED FOR 10 YEARS Record Maintenance policy 12  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem)  Recurring Deposit Ledger E  Call Deposit Ledgers  Mini Deposit Ledgers  Term Loan Ledgers E  PNB 1157, PNB 1158 Registers (Pertaining to Loss Data)  Auditors’ Certificate (Concurrent / Regular Inspector MARD / Statutory Auditors) on Loss Data  Cash Receipts and Payment Books. (Scrolls)  Remittance Register.  Banker’s Account Ledger E  Party-wise DD Purchased Register / Bills Discounted Register / Register for Drafts Purchased / Register for Inward Demand Drafts Received E  Register for Inward Bills Received for Collection (Inland and Foreign) Register for Outward Bills for Collection (Inland and Foreign) ABC Ledger RECORDS TO BE PRESERVED FOR 12 YEARS RECORDS TO BE PRESERVED FOR 15 YEARS 01 Decree ledger 02 Protested Advances/Non-Performing Assets Registe RECORDS TO BE PRESERVED FOR ALL TIMES Record Maintenance policy 13  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem)  Files of Account Opening Forms (along with related documents under KYC Policy of Bank), including Applications for ‘Alternate Delivery Channel’, Specimen Signature Slips / Cards and other allied documents of closed accounts.  Lease Deed (Safe Deposit Vaults) inventories, prepared in respect of articles in Safe Custody and Safety Lockers and nomination  Key Register E 35  Security Deposit Ledger  Bonus Register /File  Powers of attorney (Current and Savings Bank)  Memorandum of Letters of Lockers and Specimen Signature cards  Specimen Signature file or books.  Claim application on account of deceased Non Resident (Ordinary) / Non Resident (External)/ FCNR (B) account holders.  Claims paid pending recovery Register  Records/documents containing details of all accounts and transactions, in respect of which amounts has been transferred to DEAF Records of books, accounts and other documents to be retained for a period of 8 years in terms of Rule 3 of the Banking Companies (Period of Preservation of Records) Rule , 1985 Record Maintenance policy 14  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) RECORDS OTHER THAN REGISTERS Bank Cash Scrolls /Bank Transfer Scrolls E/Remittance Schedules /Paid Cheques /Pay-in-slips Vouchers relating DDs, TTs, MTs, Fixed Deposits, Cash Deposits, Cash Credit and other Deposit and Loan Accounts including Vouchers relating to Payment to Nominees./Account Opening Forms, Inventories prepared in respect of Articles in Safe Custody, Safety Lockers and Nomination Forms./Standing Instructions relating to Current Accounts /Applications for DDs/RTGS/NEFT and other remittances/Press Copy Books Record covering books, accounts and other documents to be retained for a period of 5 years in terms of Rule 2 of the Banking Companies (Period of Preservation of Records Rule,1985) For categorization and Retention Period of Audit Logs of Server refer page no 52/63 if required O-2. Preservation Period for Voice Recordings, CCTV Footage, Video Conferencing, EJ/JP of ATMs, etc. CCTV footages/recordings of currency chest, branches, 90 days in storage media and when a dispute has been ATMs, Administrative Office & all other offices raised, until issue is resolved. Footage/recordings for ATMs embedded web cameras 180 days in storage media and when a dispute has been raised, until issue is resolved. Voice Recordings (Treasury, Credit Card Division) 90 days in storage media and when a dispute has been Customer Care Division raised, until issue is resolved. 90 days in storage media in live environment & offsite storage for 7 years and when a dispute has been raised, until issue is resolved. Video conferencing by any of the Directors 21 months in storage media (Till AFI is conducted) Electronic Journals (EJs) of the ATMs Period at par with vouchers (maximum 10 years) at JP logs branches to be kept in storage media. 30 days and when a dispute has been raised, until issue is resolved If DVRs of CCTVs at any branch/office is not capable of preservation of footage for 90 days then efforts to be made for immediate upgradation for preserving the footage for 90 days and till the upgradation takes place, footage of CCTVs to be kept in removable/retrievable storage media. Record Maintenance policy 15  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) POLICY FOR DISHONOUR OF CHEQUES AND NACH (NATIONAL AUTOMATED CLEARING HOUSE) MANDATES (OPERATIONS DIVISION (GENERAL BANKING) CIRCULAR NO. 16/2024 ) Date: 20/03/2024  Objective of this policy is to prevent misuse of the cheque drawn / NACH Mandate (Previously known as ECS) facility.  This policy shall be applicable for all the cases of return of cheques / NACH Mandates for Rs.25.00 lacs & above. Cases of return of cheques/ NACH Mandates of Rs.25.00 lacs and above but less than Rs.1.00 crore will be monitored by the respective Zonal Offices /Circle Heads. All cases of return of cheques /NACH Mandates of Rs.1.00 crore and above, for want of sufficient funds, will be monitored at Control Cell under Operations Division, HO.  Ensure that while issuing a cheque book in newly opened / existing accounts (Current, Savings Fund, Cash Credit, Overdraft, etc.), the following narration is printed or a rubber stamp be endorsed till new cheque books with this narration printed thereon are provided to them: “It is open to the Bank not to issue fresh cheque book in the account or even to consider closure of account / discontinuance of the credit facility at its discretion in the event of dishonour of one or more cheque (s) each for Rs. 25.00 lacs and above for want of sufficient funds on four occasions in a financial year.”  If a cheque is dishonoured for a third time in a particular account of the drawer during the financial year, branch should issue a cautionary advice  In the event of dishonour of a cheque valuing Rs.25.00 lacs and above and drawn on a particular account of the drawer on 4 occasions during the financial year for want of sufficient funds in the account, no fresh cheque book would be issued. The bank may also consider closing of account at its discretion after issuing 30 days’ notice to the customer in the event of subsequent dishonour of cheques/ NACH mandates in the account. However, in respect of constituents where customer is a borrower of the Bank, Circle Heads/ Branch Incumbents to ensure that the aspect of returning is taken into consideration at the time of renewal/ enhancement of limits.  If an account is having cheque book facility and NACH mandate is also registered, then the incidents of dishonour will be taken both for dishonour of cheque and NACH mandate for computing the number of dishonour of cheques/ NACH mandates  Where the conduct of account is not satisfactory and party is not heeding to the requests/counselling, bank may consider closing of the account even in case of less than 4 high value returning (but minimum 2 returning), after serving a suitably drafted Regd. notice with the permission of Circle Head. In such cases, the Incumbent of Large Corporate Branch (LCB) / Extra Large Corporate Branch (ELCB) is also authorised to close the account of the party after serving the said notice DISHONOUR OF NACH MANDATES: SECTION 25 OF THE PAYMENT AND SETTLEMENT SYSTEM ACT-2007 & PROCEDURE TO HANDLE FAILED NACH MANDATES  As per Section 25 of the Payment and Settlement Systems Act, 2007, where an electronic funds transfer initiated by a person from an account maintained by him cannot be executed on the ground that the amount of money standing to the credit of that account is insufficient to honour the transfer instruction or that it exceeds the amount arranged to be paid from that account by an agreement made with a bank, there is provision to prosecute such person as per above act.  Base Branch may consider for closing of account after serving 30 daysnotice to the customer after subsequent NACH mandate failure, even though the account is not having any cheque book facility and only NACH mandate has been registered.  AUTHORITY FOR DETERRENT / PUNITIVE ACTION AGAINST DEFAULTING CUSTOMERS AND OTHER POLICY FOR DISHONOUR OF CHEQUES AND NACH 1  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) GENERAL GUIDELINES  The authority to withhold issuance of a fresh cheque book and exercising discretion for closing a current / savings fund account, if four or more cheques each for Rs.25.00 lacs and above are dishonoured for want of sufficient funds in a given financial year, shall vest with the Incumbent Incharge of the branch. However, before exercising powers to close a current / savings fund account, the Incumbent Incharge shall record his decision with due justification on office copy of the notice served to the party and this will form a part of the record of the closed account.  In case of Cash Credit / Overdraft accounts, the issue relating to nonissuance of a fresh cheque book as well as continuation or otherwise of the credit facilities due to dishonour of cheques/ NACH mandates each of Rs. 25.00 lacs and above on four occasions during a financial year on account of “exceeding arrangement” shall be reviewed by an authority one step higher than the sanctioning authority for a final decision. In case of HOCAC-III and Management Committee (MC) sanctions, review be done by the HOCAC-III.  Dishonour of cheques/ NACH mandates in borrowal accounts be taken as warning signal and timely action be initiated to ensure that those accounts do not slip into NPA category. PARTY-WISE RECORD MAINTENANCE OF DISHONOURED CHEQUES  The branches shall generate this information from CBS in PNBRPT menu by invoking 12/41a & 12/41b. A new report is also customized in the system under amalgamated EDW report and path is EDW / PNB 2.0 Reports / IAD/ IAD 027 and through this report, field functionaries may generate reports as per their requirement.  Circle Heads will send the information on dishonour of cheques / failed NACH mandates for Rs.25.00 lacs and above to Zonal Manager. In case of LCB/ ELCB, they will directly send information to Zonal Office and follow all the procedure applicable in GBB along with the action taken by them.  Zonal Managers will monitor/scrutinize all the cases for Rs.25.00 lacs and above, and send the information on dishonour of cheques/ failed NACH mandates for Rs.1.00 crore and above in a consolidated report of the Zone to Control Cell under Operations Division, HO in the following four parts along with the action taken by the branches/Circle offices/Zonal Offices: - (i) Cheques drawn by Stock Brokers in favour of Stock Exchange, irrespective of amount; (ii) Cheques drawn by constituents other than Stock Brokers of Rs.1.00 crore & above; (iii) Cheques of Rs.1.00 crore & above where Payee is a Borrower of the Bank and (iv) Present Status of Accounts having frequent/repeated returning reported in current as well as previous quarter and action taken by Branch/Circle Office; Zonal Office, must submit the data within 15 days of the quarter end. The data so received from zones shall be placed before the Audit Committee of Executives (ACE)/ Audit Committee of Board (ACB) on quarterly basis.  When an inward clearing cheque is received by Service SOLs in local/CTS clearing and dishonoured for some reason, the Incharge of Clearing Section shall ensure that the cheque is returned to the presenting bank /our sister branches promptly within 24 hours of dishonour on the same day / next day when the clearing house meets for exchanging the returning along with duly signed Cheque Return Memo  “Bank while accepting the cheque for collection only, acts as an agent of the account holder and sends the same for collection on behalf of the account holder. Therefore, in case of accepting the cheque on behalf of the customer for collection only, endorsement on the cheque is not required. However, if bank purchases the cheque for consideration, endorsement is required to be obtained on the cheque to become holder in due course.” POLICY FOR DISHONOUR OF CHEQUES AND NACH 2  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) POLICY FOR KNOW YOUR CUSTOMER (Operations Division (KYC Section) Circular No. 05/2024) Date: 21/03/2024  The KYC Policy has been framed to develop a strong mechanism for achieving the following objectives: 1. To prevent Bank from being used intentionally or unintentionally, by criminal elements for Money Laundering or Terrorist Financing activities. 2. KYC procedures also enable the Bank to know/understand their customers and their financial dealings better, which in turn helps it to manage the associated risks prudently 3. To enable the Bank to comply with all the legal and regulatory obligations in respect of KYC norms / AML standards / CFT measures / Bank’s Obligation under PMLA, 2002 and to cooperate with various govt bodies. 4. The purpose of KYC policy is to put in place customer identification procedures for opening of accounts and monitoring transactions in the accounts for detection of transactions of suspicious nature for the purpose of reporting to Financial Intelligence Unit-India [FIU-IND] in terms of the recommendations made by Financial Action Task Force (FATF) and the paper issued on Customer Due Diligence (CDD) for banks by the Basel Committee on Banking Supervision (BCBS) on AML standards and on CFT measures 5. For this Policy, the term ‘Money Laundering’ would also cover financial transactions where the end-use of funds is for financing terrorism, irrespective of the source of funds THE KYC POLICY INCLUDES FOLLOWING KEY ELEMENTS: 1. CUSTOMER ACCEPTANCE POLICY (i) No account is opened in anonymous or fictitious / benami name. (ii) No account is opened where the Bank is unable to apply appropriate Customer Due Diligence (CDD) (iii) No transaction or account based relationship is undertaken without following the CDD procedure. (iv) The mandatory information sought for KYC purpose while opening an account and during the periodic updation, is specified. (v) Additional information, where such information requirement has not been specified in KYC Policy of the Bank, is obtained with the explicit consent of the customer. (vi) The CDD procedure is to be applied at the UCIC level. Thus, if an existing KYC compliant customer of Bank desires to open another account with the same Bank, there shall be no need for a fresh CDD exercise. (vii) CDD Procedure is followed for all the joint account holders, while opening a joint account. (viii) Circumstances, in which a customer is permitted to act on behalf of another person / entity, are clearly spelt out. (ix) No account is opened where identity of the customer matches with any person or entity, whose name appears in the sanctions lists indicated in Chapter IX of the Master Direction of RBI on KYC as amended from time to time. (x) Where Permanent Account Number (PAN) is obtained, the same shall be verified from the verification facility of the issuing authority. (xi) Where an equivalent e-document is obtained from the customer, the digital signature has to be verified as per the provisions of the Information Technology Act, 2000 (21 of 2000). (xii) Where Goods & Services Tax (GST) details are available, the GST number shall be verified from the search/ verification facility of the issuing authority 2. RISK MANAGEMENT (i) Customers shall be categorized as low, medium and high risk category, based on the assessment and risk perception of the Bank. (ii) Broad principles may be laid down by the Bank for risk-categorization of customers. (iii) Risk categorization shall be undertaken based on parameters such as customer's identity, social / financial status, nature of business activity, clients' business & their location, geographical risk, delivery channel used for delivery of products/services, wire transfers, forex transactions, etc. POLICY FOR KNOW YOUR CUSTOMER 1  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) (iv) The risk categorization of a customer and the specific reasons for such categorization shall be kept confidential and shall not be revealed to the customer to avoid tipping off the customer. 3. CUSTOMER IDENTIFICATION PROCEDURE (CIP) Customer Identification Procedure means undertaking client due diligence measures including identifying and verifying the customer and the beneficial owner. Bank to undertake identification of customers in the following cases: (i) Commencement of an account-based relationship with the customer. (ii) Carrying out any international money transfer operations for a person who is not an account holder of the Bank. (iii) When there is a doubt about the authenticity or adequacy of the customer identification data (CID) it has obtained. (iv) Selling third party products as agent, selling its own products, payment of dues of credit cards / sale and reloading of prepaid / travel cards and any other product for more than rupees fifty thousand. (v) Carrying out transactions for a non-account based customer, that is a walkin customer, where the amount involved is equal to or exceeds rupees fifty thousand, whether conducted as a single transaction or several transactions that appear to be connected. (vi) When Bank has reason to believe that a customer (account-based or walkin) is intentionally structuring a transaction into a series of transactions below the threshold of rupees fifty thousand. (vii) It is to be ensured that introduction is not to be sought while opening accounts. 4. MONITORING OF TRANSACTIONS Bank shall undertake on-going due diligence of customers to ensure that their transactions are consistent with their knowledge about the customers, customers' business and risk profile; and the source of funds. 5. MONEY LAUNDERING AND TERRORIST FINANCING RISK ASSESSMENT BY BANK: Bank shall carry out ‘Money Laundering (ML) and Terrorist Financing (TF) Risk Assessment’exercise periodically to identify, assess and take effective measures to mitigate its money laundering and terrorist financing risk for clients, countries or geographic areas, products, services, transactions or delivery channels, etc COMPLIANCE OF KYC POLICY as advised in RBI’s Master Directions on KYC a) DESIGNATED DIRECTOR: (i) An Executive Director on the Board to be nominated as “Designated Director”, as per provisions of the Prevention of Money Laundering (Maintenance of Records) Rules, 2005, to ensure overall compliance with the obligations imposed under Chapter IV of the PML Act and the Rules. Designated Director shall be nominated by the Board. In no case, the Principal Officer be nominated as the 'Designated Director'. b) PRINCIPAL OFFICER: The Board has nominated Dy. General Manager, In-charge Centralized AML Cell as Principal Officer of the Bank, who shall be responsible for ensuring compliance, monitoring transactions, sharing and reporting information as required under the law / regulations. The Principal Officer will report to Designated Director through Chief General Manager, FRMD, who shall be the administrative head of Centralized AML Cell and will oversee the functioning of Centralized AML Cell as per PML Act/ KYC Policy The Principal Officer will maintain close liaison with enforcement agencies, banks and other institutions which are involved in the fight against money laundering and combating financing of terrorism. c) COMPLIANCE MECHANISM BE FOLLOWED METICULOUSLY REPORTING REQUIREMENTS TO FINANCIAL INTELLIGENCE UNIT – INDIA In terms of Rule 3 of the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 and in terms of Rule 7 thereof, the following reports shall be furnished to Financial Intelligence Unit-India as per guidelines prescribed by RBI / FIU as applicable and within the timelines specified. Cash Transaction Report [CTR / Suspicious Transactions Report [STR] / Counterfeit Currency Report [CCR] POLICY FOR KNOW YOUR CUSTOMER 2  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) Non Profit Organisations Transaction report [NTR] / Cross-border Wire Transfer Report [CWTR] Operational Guidelines for KYC Policy  Beneficial Owner (BO) a. Where the customer is a company: "Controlling ownership interest" means ownership of / entitlement to more than 10 per cent of the shares or capital or profits of the company. b. Where the customer is a partnership firm: , the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical person, has / have ownership of / entitlement to more than 10 per cent of capital or profits of the partnership or who exercises control through other means. c. Where the customer is an unincorporated association or body of individuals, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical person, has / have ownership of/ entitlement to more than 15 per cent of the property or capital or profits of the unincorporated association or body of individuals. d. Where the customer is a trust, the identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with 10% or more interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership  “Certified Copy of OVD” - Obtaining a certified copy by bank shall mean comparing the copy of officially valid document so produced by the customer with the original and recording the same on the copy by the authorized officer of the Branch under his GBPA/PF no. Branch Official will also attest the duly signed photograph of the customer. In case of Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs), as defined in Foreign Exchange Management (Deposit) Regulations, 2016 {FEMA 5(R)}, alternatively, the original certified copy of OVD, certified by any one of the following, may be obtained: A. authorized officials of overseas branches of Scheduled Commercial Banks registered in India, B. branches of overseas banks with whom Indian banks have relationships, C. Notary Public abroad, D. Court Magistrate, E. Judge, F. Indian Embassy/Consulate General in the country where the nonresident customer resides.  “Know Your Client (KYC) Identifier” means the unique number or code assigned to a customer by the Central KYC Records Registry.  "Officially valid document" (OVD) means the passport, the driving license, proof of possession of Aadhaar number, the Voter's Identity Card issued by the Election Commission of India, job card issued by NREGA duly signed by an officer of the State Government and letter issued by the National Population Register containing details of name and address Where the OVD furnished by the customer does not have updated address Than : - i. Utility bill which is not more than two months old of any service provider (electricity, telephone, mobile phone, piped gas, water bill); ii. Property or Municipal tax receipt; iii. Pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address; iv. Letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation; Further, at the time of on-boarding of the customer, an undertaking should be obtained from the customer along with AOF/OVDs stating that Customer shall submit his OVD with updated current address within 3 months failing which operations in his account shall be restricted. POLICY FOR KNOW YOUR CUSTOMER 3  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem)  "Shell Bank" means a bank that has no physical presence in the country in which it is incorporated and licensed, and which is unaffiliated with a regulated financial group that is subject to effective consolidated supervision.  SMALL ACCOUNT (i) The aggregate of all credits in a financial year does not exceed rupees one lakh (ii) The aggregate of all withdrawals and transfers in a month does not exceed rupees ten thousand; and (iii) The balance at any point of time does not exceed rupees fifty thousand. The account shall remain operational initially for a period of twelve months which can be extended for a further period of twelve months, provided the account holder applies and furnishes evidence of having applied for any of the OVDs during the first twelve months of the opening of the said account. The entire relaxation provisions shall be reviewed after twenty four months. Identity of the customer shall be established as per Section 2 or Section 4. Foreign remittance shall not be allowed to be credited into the account unless the identity of the customer is fully established as per Section 2 or Section 4.  Business/ Activity proof for Sole Proprietary firms In addition to the above, any two of the following documents or the equivalent edocument thereof as a proof of business / activity in the name of the proprietary firm shall also be obtained: (i) Registration certificate including Udyam Registration Certificate (URC) issued by the Government (ii) Certificate / Licence issued by the municipal authorities under Shop and Establishment Act (iii) Sales and income tax returns (iv) CST / VAT / GST certificate. (v) Certificate / registration document issued by Sales Tax / Service Tax / Professional Tax authorities. (vi) IEC (Importer Exporter Code) issued to the proprietary concern by the officeof DGFT / Licence / certificate of practice issued in the name of the proprietary concern by any professional body incorporated under a statute. (vii) Complete Income Tax Return (not just the acknowledgement) in the name of the sole proprietor where the firm's income is reflected, duly authenticated / acknowledged by the Income Tax authorities. (viii) Utility bills such as electricity, water, and landline telephone bills.  For opening an account of a company, certified copies of each of the following documents or the equivalent e- document thereof shall be obtained: (i) Certificate of incorporation; (ii) Memorandum and Articles of Association; (iii) Permanent Account Number of the company; (iv) A resolution from the Board of Directors and power of attorney granted to its managers, officers or employees to transact on its behalf; (v) Documents, as specified in Section 2, relating to beneficial owner, the managers, officers or employees, as the case may be, holding an attorney to transact on the company’s behalf (vi) the names of the relevant persons holding senior management position: and (vii) the registered office and the principal place of its business, if it is different.  For opening an account of a partnership firm, the certified copies of each of the following documents or the equivalent e-documents thereof shall be obtained: (i) Registration certificate; (ii) Partnership deed; (iii) Permanent Account Number of the partnership firm; (iv) Documents, as specified in Section 2, relating to beneficial owner, the managers, officers or employees, as the case may be, holding an attorney to transact on its behalf; (v) The names of all the partners; and POLICY FOR KNOW YOUR CUSTOMER 4  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) (vi) address of the registered office, and the principal place of its business, if it is different.  For opening an account of a trust, certified copies of each of the following documents or the equivalent e- documents thereof shall be obtained: (i) Registration certificate; (ii) Trust deed; (iii) Permanent Account Number or Form No.60 of the trust; (iv) Documents, as specified in Section 2, relating to beneficial owner, the managers, officers or employees, as the case may be, holding an attorney to transact on its behalf; (v) the names of the beneficiaries, trustees, settlor, protector, if any and authors of the trust; (vi) the address of the registered office of the trust; and (vii) list of trustees and documents, as are required for individuals under Section 2 for those discharging role as trustee and authorised to transact on behalf of the trust.  For opening an account of an unincorporated association or a body of individuals, certified copies of each of the following documents or the equivalent edocument thereof shall be obtained: (i) Resolution of the managing body of such association or body of individuals; (ii) Permanent account number or Form No.60 of the unincorporated association or a body of individuals; (iii) Power of attorney granted to transact on its behalf; (iv) Documents, as specified in Section 2, relating to beneficial owner, the managers, officers or employees, as the case may be, holding an attorney to transact on its behalf and (v) such information as may be required by the Bank to collectively establish the legal existence of such an association or body of individuals  For opening account of a customer who is a juridical person (not specifically covered in the earlier part) such as societies, universities and local bodies like village panchayats, etc. (i) Document showing name of the person authorised to act on behalf of the entity (ii) Documents, as specified in Section 2, of the person holding an attorney to transact on its behalf and (iii) Such documents as may be required by the Bank to establish the legal existence of such an entity/juridical person  For opening an account of Hindu Undivided Family, certified copies of each of the following documents shall be obtained: (i) Identification information as mentioned under Section 2 in respect of the Karta and Major Coparceners, (ii) Declaration of HUF and its Karta, (iii) Recent Passport photographs duly self-attested by major co-parceners alongwith their names and addresses. (iv) The Permanent Account Number or the equivalent e-document thereof or Form No. 60 as defined in Income-tax Rules, 1962  In case of existing business relationship which is not KYC compliant, customer induced debit operations in CASA and CC/OD accounts linked with that customer ID to be temporarily ceased. However, before temporarily ceasing operations for an account, it is to be ensured to give the client two notices of 10 days each and within 30 days period the account should be made KYC compliant otherwise customer induced debit operations in CASA and CC/OD accounts linked with that customer ID shall be frozen. The account holders shall have the option, to revive their accounts by submitting the KYC documents Enhanced and Simplified Due Diligence Procedure  Enhanced Due Diligence (EDD) for non-face-to-face customer onboarding (other than customer on-boarding in terms of Section 3): Non-face-toface on-boarding facilitates the REs to establish relationship with the customer without meeting the customer physically or through V-CIP. Such non-face-to-face modes for the purpose of this Section includes use of digital channels such as CKYCR, DigiLocker, equivalent e-document, etc., and non-digital POLICY FOR KNOW YOUR CUSTOMER 5  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) modes such as obtaining copy of OVD certified by additional certifying authorities as allowed for NRIs and PIOs  Accounts of Politically Exposed Persons (PEPs It shall be ensured by branch/offices that risk has been assigned as per Bank guidelines where the customer or the beneficial owner is a PEP. Reasonable measures are taken for establishing the source of funds / wealth; the approval to open an account for a PEP shall be obtained from the senior management, i.e., at the level of Chief manager and above, in accordance with the Bank' Customer Acceptance Policy; These instructions shall also be applicable to family members or close associates of PEPs. Identification and monitoring of Money Mule Accounts a. Accounts of natural persons having very low balance (say a few hundred rupees) and not operated for more than a year OR b. Accounts of natural persons having been opened as small accounts, as defined in Section 5 of Operational Guidelines of KYC policy. AND c. Receiving multiple credits of small amounts in quick succession in a very short span of time followed by immediate withdrawals (cash or transfer, single or multiple) would be flagged as suspected money mule accounts. Any such account, which has been flagged as suspected money mule account, would immediately be subjected to Enhanced Due Diligence (EDD) and enhanced monitoring without any tip off to the customer. The accounts then identified as suspected money mule shall be reported in Suspicious Transaction Report (STR) to FIU-IND by CAML Cell. Reports to be furnished to Financial Intelligence Unit-India (1) CASH TRANSACTIONS REPORT [CTR] (i) Report of all cash transactions of the value of more than rupee ten lakhs or its equivalent in foreign currency and all series of cash transactions integrally connected to each other which have been valued below rupees ten lakhs or its equivalent in foreign currency where such series of transactions have taken place within a month and the aggregate value of such transaction exceeds Rupees ten lakh. (ii) The CTR for each month will be submitted to FIU-IND by 15th of the succeeding month. (iii)A copy of monthly CTR submitted on its behalf to FIU-IND is available at the concerned branch (through MIS Report: Misc Reports Module under SENSRPT – 5/7 & 5/7a) for production to auditors/Inspectors, when asked for. (2) SUSPICIOUS TRANSACTION REPORTS (STR) "Suspicious transaction" means a "transaction" as defined below, including an attempted transaction, whether or not made in cash, which, to a person acting in good faith: a. gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the Schedule to the Act, regardless of the value involved; or b. appears to be made in circumstances of unusual or unjustified complexity; or c. appears to not have economic rationale or bona-fide purpose; or d. gives rise to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism Furnishing of STR to be ensured within seven days of arriving at a conclusion by the Principal Officer of the Bank that any transaction, whether cash or non-cash, or a series of transactions integrally connected are of suspicious nature. (3) COUNTERFEIT CURRENCY REPORT (CCR): Cash transactions were forged or counterfeit currency notes have been used as genuine or where any forgery of a valuable security or document has taken place facilitating the transactions will be reported to Financial Intelligence Unit-India in the specified format by 15th of the succeeding month. (4) NON PROFIT ORGANISATIONS TRANSACTION REPORT [NTR] All transactions involving receipts by non-profit organizations of value more than rupees ten lakh or its equivalent in foreign currency, to be reported to the Director, Financial Intelligence Unit-India by the 15th of the succeeding month (5) Cross-border Wire Transfer Report [CWTR] Cross-Border Wire Transfer Report (CWTR) to be filed to the Director, Financial Intelligence Unit-India by 15th of succeeding month for all cross border wire transfers of the value of POLICY FOR KNOW YOUR CUSTOMER 6  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) more than Rs. 5 lakh or its equivalent in foreign currency where either the origin or destination of fund is in India. INTERNAL CONTROL SYSTEM (i) One Nodal officer at each Circle Office (Scale IV) & Zonal Office (Scale V) has been designated for compliance of KYC Policy and to monitor and strengthen the internal control system for prevention of money laundering and combating financing of terrorism (II) CENTRALIZED AML CELL: Makers at Centralized AML Cell will analyse the alerts pertaining to their assigned areas (like Zones / Circles / Scenarios / Alert Frequency, etc.) on day to day basis and escalate to the Checker for closure or further necessary action. Checkers will check the action of the maker and after thorough analysis of the transactions /alerts, will close the alerts after ensuring that all the transactions are genuine in nature and match with the business profile of the customer, escalate for further action or reassign to the maker for further analysis in case any further information is required. Post-closure scrutiny of closed alerts (@20%) shall be undertaken at Centralised AML Cell by Officers upto Scale III. Further, Chief Managers at Centralised AML Cell will also review / scrutinise atleast 5 % of the closed alerts, pertaining to their respective areas, on random sample basis CDD Procedure and sharing KYC information with Central KYC RecordsRegistry (CKYCR)  Government of India has authorized the Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI), to act as, and to perform the functions of the CKYCR  In terms of provision of Rule 9(1A) of PML Rules, the Bank has to capture customer’s KYC records and upload onto CKYCR within 10 days of commencement of an account-based relationship with the customer  All offices shall capture the KYC information for sharing with the CKYCR in the manner mentioned in the Rules, as per the KYC templates prepared for ‘Individuals’ and ‘Legal Entities’ (LEs), as the case may be  Where a customer, for the purposes of establishing an account based relationship, submits a KYC Identifier to the Bank, with an explicit consent to download records from CKYCR, then concerned office shall retrieve the KYC records online from the CKYCR using the KYC Identifier and the customer shall not be required to submit the same KYC records or information or any other additional identification documents or details subject to no changes in previous records.  Reporting requirement under Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS) Under FATCA and CRS, all offices shall adhere to the provisions of Income Tax Rules 114F, 114G and 114H.  CAML Cell shall undertake diligence measures and meticulous monitoring to identify accounts which are operated as Money Mules and take appropriate action, including reporting of suspicious transactions to FIU-IND. Further, if it is established that an account opened and operated is that of a Money Mule, but no STR was filed, it shall then be deemed that these instructions have not complied with.  Correspondent banking is the provision of banking services by one bank (the “correspondent bank”) to another bank (the “respondent bank”). These services include cash/funds management, international wire transfers, drawing arrangements for demand drafts and mail transfers, payable-through-accounts, cheques clearing, etc.  The correspondent bank shall ensure that the respondent bank is able to provide the relevant CDD information immediately on request.  A. Information requirements for wire transfers for the purpose of Operational Guidelines of KYC Policy (i) All cross-border wire transfers shall be accompanied by accurate, complete, and meaningful originator and beneficiary information as mentioned below: a. name of the originator b. the originator account number where such an account is used to process the transaction; c. the originator’s address, or national identity number, or customer identification number, or date and place of birth; POLICY FOR KNOW YOUR CUSTOMER 7  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) d. name of the beneficiary; and e. the beneficiary account number where such an account is used to process the transaction. Domestic wire transfers of rupees fifty thousand and above, where the originator is not an account holder of the ordering Bank, shall also be accompanied by originator and beneficiary information as indicated for cross-border wire transfers B. Responsibilities of ordering Bank, intermediary Bank and beneficiary Bank, effecting wire transfer to be adhere properly. Money Transfer Service Scheme (MTSS) providers and Bank, are required to comply with all of the relevant requirements of this Section, whether they are providing services directly or through their agents. Banks that control both the ordering and the beneficiary side of a wire transfer shall: - a. into account all the information from both the ordering and beneficiary sides in order to determine whether an STR has to be filed; and b. file an STR with FIU, in accordance with the PML Rules, if a transaction is found to be suspicious STANDARD OPERATING PROCEDURE FOR PERIODIC KYC UPDATION 1. CHANNELS FOR PERIODIC KYC UPDATION OF INDIVIDUALS A. Email-Id registered with the Bank/ By Post/ By Letter/ By visiting Branch B. For cases where Customer is submitting a self-declaration of the new address: The branch shall verify the address by a positive confirmation within 30 days, by means such as address verification letter, contact point verification (CPV) by branch official. The confirmation process needs to be completed within 30 days from the updation date in CBS C. e-KYC authentication at any Branch D. Mobile No. registered with the Bank (Only for no change in customer information) i. The customer shall submit an SMS in the format “KYCNC_CustomerID” from his registered mobile no. with the Bank to 5607040 E. PNB ATMs (Only for no change in customer information) F. Internet Banking/ Mobile Application (PNB ONE) of the Bank Option 1: Updation of customer details through IBS/PNB ONE Option 2: e-KYC through IBS/PNB ONE G. Option 3: Refer to V-CIP solution: FAQ: How can a Special Rupee Vostro Account(SRVA) of a Non-Resident Bank not having PAN number be opened in CBS? Response: Opening of Special Rupee Vostro Account (SRVA) of Non-Resident Bank may not require PAN in the Bank’s CBS. Unique Code allotted by RBI will mandatorily be validated and captured in CBS. REFER UNDERNOTED ANNEXURES FOR DETAILED STUDIES IF REQUIRED Annex -I Standard Operating Procedure For Periodic KYC Updation 68-76 Annex-II Digital KYC Process 77-78 Annex-III Indicative list of various types of indicators, i.e., Customer behavior and risk- 79-87 based transaction monitoring, high & medium risk: customers/ products & services/ geographies/ locations/alerts for branches/ offices Annex-IV KYC documents for eligible FPIs under PIS 88-90 Annex-V Frequently Asked Questions (FAQs) 91-99 POLICY FOR KNOW YOUR CUSTOMER 8  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) POLICY FOR COLLECTION OF CHEQUES AND INSTRUMENTS FOR THE YEAR 2024-25 (CUSTOMER CARE CENTRE CIRCULAR NO. 16/2024) Date: 18/04/2024  The Policy for Collection of Cheques and Instruments has been designed to set out guidelines for dealing with the collection process of instruments in a fair and transparent manner.  Cheques deposited at branch counters and in collection boxes within the branch premises before the specified cut-off time will be presented for clearing on the same day.  As a policy, bank would give credit to the customer account on the same day on which clearing settlement takes place. Withdrawal of amounts would be permitted as per the return.  Bank branches situated at centres where no clearing house exists, would present local cheques on drawee banks across the counter and it would be the bank’s endeavour to credit the proceeds at the earliest but not later than 3rd working day from the date of deposit by customer  Cheques payable in Foreign Countries: Cheques payable at foreign centres where the bank has branch operations (or banking operations through a subsidiary, etc.) will be collected through that office. The services of correspondent banks will be utilized in country/centres where the correspondent Bank has presence. Cheques drawn on foreign banks at centres where the bank or its correspondents do not have direct presence will be sent direct to the drawee bank with instructions to credit proceeds to the respective Nostro Account of the bank maintained with one of the correspondent Banks.  Purchase of Local / Outstation Cheques Bank may, at its discretion, purchase local / outstation cheque tendered for collection at the specific request of the customer for credit to Govt. Deptt. / Central or State Govt. Undertakings only  Time frame : For cheques and other instruments sent for collection to centres within the country, the following time norms shall be applied: Cheques presented at CTS Centres : Maximum period of 7 days. Non-CTS Centres : Maximum period of 10/14days  Time Frame for Cheques drawn on foreign countries: Such instruments are accepted for collection on the ‘best of efforts’ basis. Bank may enter specific collection arrangement with its correspondent bank for speedy collection of such instrument. Bank would give credit to the party on credit of proceeds to the Bank’s Nostro Account with the correspondent bank after considering cooling periods as applicable to the countries concerned. Policy for collection of cheque & instrument 1  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem)  Cheques / Instruments lost in transit / in clearing process or at paying Bank’s Branch: The bank will compensate the account holder in respect of instruments lost in transit in the following way: a. In case intimation regarding loss of instrument is conveyed to the customer beyond the time limit stipulated for collection (3/7/10/14 days as the case may be) interest will be paid for the period exceeding the stipulated collection period at the rates specified above. b. In addition, bank will pay interest on the amount of the cheque for a further period of 15 days at Savings Bank rate to provide for likely further delay in obtaining duplicate cheque/instrument and collection thereof. c. The bank would also compensate the customer for any reasonable charges he/she incurs in getting duplicate cheque/instrument upon production of receipt, in the event the instrument is to be obtained from a bank/ institution who would charge a fee for issue of duplicate instrument.  Cheque return charges only in cases where the customer is at fault and is responsible for such returns.  Further, in cases where the cheques need to be re-presented without any recourse to the payee, such re-presentation shall be made in the immediate next clearing presentation not later than 24 hours (excluding holidays) with due notification to the customers.  Collection of Account Payee Cheque -Prohibition on Crediting Proceeds to Third Party Account Bank would not collect account payee cheques for any person other than the payee constituent. Where the drawer / payee instructs the bank to credit the proceeds of collection to any account other than that of the payee, the instruction being contrary to the intended inherent character of the 'account payee' cheque, bank should ask the drawer / payee to have the cheque or the account payee mandate thereon withdrawn by the drawer. This instruction would also apply with respect to the cheque drawn by a bank payable to another bank. With a view to mitigate the difficulties faced by the members of co-operative credit societies in collection of account payee cheques, bank may consider collecting account payee cheques drawn for an amount not exceeding 50,000/- to the account of their customers who are co-operative credit societies, if the payees of such cheques are the constituents of such co-operative credit societies. This shall, however, be subject to the fulfillment of the requirements of the provisions of Negotiable Instruments Act, 1881, including Section 131 thereof.  Validity of cheque/ draft/ pay order/ Banker’s cheque: It has been reduced from 6 months to 3 months w.e.f. 01.04.2012.  Dishonour/ Return of cheques: Bank needs to mention the ‘Date of Return’ & sign/ initial the Cheque Return Memo and the Objection Slip is to be signed/initialled giving therein a definite and valid reason for refusing payment, as prescribed in Rule 6 of the Uniform Regulations and Rules for Bankers’ Clearing Houses (URRBCH). This will enable the holder of the instrument to have legal recourse against the drawer of the cheque Positive Pay System: The facility of Positive Pay System for Cheque Truncation System is implemented in our bank. Under this system, the issuer of the cheque submits certain minimum details such as Cheque Number, Cheque Amount, Cheque date, Payee/Beneficiary Name to the drawee bank.This facility will be available for all account holders issuing cheques of Rs. 50,000/- and above. The customers may avail this facility by submitting the desired details of the cheque issued by them through Branch/Internet Banking Service / Mobile Banking Service (PNB ONE), SMS Banking and through PNB Corporate Website. Availing of this facility will be mandatory for cheque amount above the Policy for collection of cheque & instrument 2  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) threshold limit as prescribed by RBI/Regulatory Authority/Bank from time to time. However, only those cheques which are compliant with instructions of Positive Pay System shall be accepted under dispute resolution mechanism at the CTS grids. Bills for Collection - Payment of interest for Delays in collection of bills Bills for collection including bills discounted required to be collected through another bank at the realising centre should be forwarded directly by the forwarding office to the realising office. The lodger's bank should pay interest to the lodger for the delayed period in respect of collection of bills at the rate of 2% p.a. above the rate of interest payable on balances of Savings Bank accounts. The delayed period should be reckoned after making allowance for normal transit period based upon a time frame of 2 days each for (i) Despatch of bills; (ii) Presentation of bills of drawees (iii) Remittance of proceeds to the lodger's bank (iv) Crediting the proceeds to drawer's account Miscellaneous:  Cheque which are deposited with wrong account number mentioned on the pay-in slip, Bank will return such cheques to the customer on the address mentioned within 48 working hours. However, in cases with incomplete address, incomplete phone no. or no phone number mentioned on the pay-in slip, the bank will be responsible to keep these instruments for a maximum period of 3 months.  Cheque received back unpaid will be returned by post/courier, etc., to the customer within 48 working hours on the address recorded in Bank’s database. However, these will be kept in the Bank for returning to the customer over the counter if he/she makes a request for the same. If not collected by the customer within 15 days, bank will send back at the recorded address by post or courier.  Force Majeure: The bank shall not be liable to compensate customers in such cases  The authority for Operational Guidelines shall lie with the Standing Committee on Customer Service. Policy for collection of cheque & instrument 3  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) GIST OF CUSTOMER RIGHTS POLICY FOR THE YEAR 2024-25 (CUSTOMER CARE CENTRE CIRCULAR NO. 17/2024) Date:18/04/2024  Customer Rights Policy explains about the rights a customer acquires during an evolving business relationship with the Bank. The policy also characterizes the responsibilities of Bank towards its customers in service delivery.  Fair and conducive environment for its customers in obtaining satisfactory Customer Services through the various Banking channels.  The Customer Rights Policy enshrines basic rights of the customers of the Bank regulated by RBI.  It spells out the rights of the customer and also the responsibilities of the bank.  Right to Fair Treatment Both the customer and the Bank have a right to be treated with courtesy. The customer should not be unfairly discriminated against on grounds such as gender, age, religion, caste and physical ability when offering and delivering financial products.  Rights of Transgender Persons:Bank will include ‘third gender’ in all forms/applications, etc., prescribed by the Reserve Bank or the bank itself, wherein any gender classification is envisaged.  To adhere the guidelines of doorstep policy of bank.  Right to Transparency, Fair and Honest Dealing The Bank will make every effort to ensure that the contracts or agreements it frames are transparent, easily understood by and well communicated to the common person. The product’s price, the associated risks, the terms and conditions that governs use over the product’s life cycle and the responsibilities of the customer and the Bank will be clearly disclosed. The customer will not be subject to unfair business or marketing practices, coercive contractual terms or misleading representations.  Ensure that staff members attend to customers and their business promptly and courteously;  Adhere code of Bank’s commitment to customers;  Make known the key risks associated with the product as well as any features that may especially disadvantage the customer.  If the bank has made any change without giving such notice which is favorable to the customer, it will notify the change within 30 days of such change. If the change is adverse to the customer, prior notice of minimum 30 days will be provided and the customer may be provided options, to close the account or switch to any other eligible account without having to pay the revised charge or interest within 60 days of such notice;  Communicate unambiguously the information about Discontinuation of particular products/Relocation of their with advance notice of at offices/Changes in working hours/Change in telephone numbers/Closure of any office or branch least 30 days  Not terminate a customer relationship without giving reasonable or contractual prior notice to the customer.  Right to Suitability The products offered should be appropriate to the needs of the customer and based on an assessment of the customer’s financial circumstances and understanding.  Right to Privacy Customers’ personal information to be kept confidential unless they have offered specific consent to the Bank or such information is required to be provided under the law or it is provided for a mandated business purpose (for example, to credit information companies). The customer to be informed upfront about likely mandated business purposes. Customers have the right to protection from all kinds of communications, electronic or otherwise, which infringe upon their privacy. i. The customer has authorized such disclosure explicitly in writing ii. Disclosure is compelled by law / regulation; iii. Bank has a duty to the public to disclose, i.e., in public interest CUSTOMER RIGHTS POLICY FOR THE YEAR 2024-25 1  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) iv. Bank has to protect its interests through disclosure v. It is for a regulatory mandated business purpose such as disclosure of default to credit information companies or debt collection agencies; Shall adhere to Telecom Commercial Communications Customer Preference Regulations, 2018 (National Customer Preference Registry) issued by Telecom Regulatory Authority of India, while communicating with customers Right to Grievance Redress and Compensation  Inform the complainant of the option to escalate his complaint to the Banking Ombudsman if the complaint is not redressed within the pre-set time;  Place in public domain information about Banking Ombudsman Scheme;  Display at customer contact points the name and contact details of the Banking Ombudsman Further, the bank will – Acknowledge all formal complaints (including complaints lodged through electronic means) within three working days and work to resolve it within a reasonable period, not exceeding 15 days. The 15-day period will be reckoned after all the necessary information sought from the customer is received; Further, additional 15 days period shall be allowed, if a complaint is escalated to Internal Ombudsman for his views/ concurrence.  Wherever thumb or toe impression of the sick/old incapacitated account holder is obtained, it should be identified by two witnesses having business relationship with the bank, one of whom should be a bank official.  Where the customer cannot even put his/her thumb impression and would not be able to be physically present in the bank, a mark can be obtained on the cheque/withdrawal form, which should be identified by two witnesses having business relationship with the bank, one of whom should be a bank official. (In the case of the person who has lost both his hands, the signature can be by means of a mark. It could be the toe impression. It can be by means of mark which anybody can put on behalf of the person who must sign, the mark being put by an instrument which has had a physical contact with the person who has to sign."  The authority for Operational Guidelines shall lie with the Standing Committee on Customer Service. CUSTOMER RIGHTS POLICY FOR THE YEAR 2024-25 2  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) POLICY FOR GENERAL MANAGEMENT OF BRANCHESFOR THE YEAR 2024-25 (CUSTOMER CARE CENTRE CIRCULAR NO. 19/202) Date: 18-04-2024  The “Policy for General Management of Branches” intends to set a basic set of standards for branch ambience by describing the level of available infrastructure in form of interiors, electrical fixtures, electrical safety audit and setting up indicator boards and posters at a prominent place.  The policy also paves path for use of vernacular languages in transacting business with customers.  The policy also lays emphasis on training to staff on customer service and deems to reward best branches for customer service.  Bank has a well-defined policy and is having BRANCH AMBIENCE IMPROVEMENT COMMITTEE (BAIC) for monitoring action points for cleanliness of branch premises and good ambience for giving good and personalized customer service.  Branch premises be made accessible to Divyangjans/Senior Citizens/Pensioners.Ramp will be provided at the entrance for the convenience of persons on the wheelchair. However, in cases where it is impracticable to provide such ramp facilities, whether permanently fixed to earth or otherwise, this requirement may be dispensed with, for reasons recorded and displayed in branches or ATMs concerned. However, in such cases, the following alternative steps be provided for smooth banking services for the “Divyangjans”: -  The “Divyangjans” will be provided banking services at the entrance of the branch where Calling Bell / Door Bells to be installed to attract attention of the designated Branch personnel so that they can come and provide the banking services  Display contact number of designated Branch personnel for personalized banking facilities to “Divyangjans”.  Further, install temporary and foldable ramps offering proper slope as well as display of name & contact number of the designated Branch personnel for using its services.  Necessary and proper seating arrangement in the Customer Waiting Area to be provided.  Electrical Safety Audit be carried out as per bank’s guidelines  The staff members manning points of interface with the customers are expected to be fully conversant with the products and services they handle to be able to answer any query from customers in a professional manner. ‘May I help You’ Desk/Counters, be extended at all branches/offices either exclusively or combined with other duties for improving the customer services. (Previously the condition was : ‘May I help You’ Counter, either exclusively or combined with other duties, to be extended at all branches having staff strength of 10 or more which is now dispensed off)  With a view to maintain continuity of Customer Service in the Branches, Branches where there is more than one service window/ counter, at least one window to remain open during business hours.  The name/designation/boards of the offices/official of the bank, as also the name-boards of the Departments/Divisions, etc., be displayed bilingually in the offices in Region ‘A’ and ‘B’ whereas in Region ‘C’, it is to be displayed trilingual, i.e., Regional Language, Hindi, and English. The classification of Regions A, B, C is as per the Government’s Official Language Rules, 1976.  A uniform updated Comprehensive Notice Board to be displayed at all the branches displaying various key aspects, i.e., interest rates, service charges, minimum balance requirement, product information, time norms for various banking transactions, Grievance Redressal Mechanism, etc.  Our Bank has designed “PNB Customer Guide”. One copy of this Booklet will be made available for easy accessibility to the customers at the ‘May I Help You’ Counter and with the Incumbent In-charge in General Banking branches and with Second Man in Special branches/ PLPs (RAM/i-RAM)/ MCCs/ LCBs/ ELCBs, etc. Additionally, the same may be stored Digitally, by the aforementioned officials.  In all branches an officer, in addition to the existing duties, will be assigned the role of “Customer Relation Officer  All communications received in Hindi from any region and in any region will invariably, be replied to in Hindi  Wearing of employee identity card by all the employees while on duty is mandatory. POLICY FOR GENERAL MANAGEMENT OF BRANCHES 1  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem)  One session on Customer Service, Public relations, etc., be included in all training programmes of more than 3 days.  Five Basic Bank Forms such as Account Opening Form, NEFT/RTGS/DD Form, Pay-in-slips, Withdrawal Slips & Passbooks, shall be translated trilingually, i.e., in English, Hindi & Concerned Regional Language by HO: Operations Division.  All the staff members entrusted with the responsibilities of Security related duties are expected to be conversant with the said guidelines, i.e., Security Manual available at Knowledge Repository  Bank shall ensure that there is a periodic change (six months but not exceeding one year) in allotment of desk and responsibilities to all employees. However, in case of staff members handling the work of loans/foreign exchange related duties, the above period of six months and one year may be extended at the discretion of the incumbent- in-charge, depending upon the exigencies.  Senior Officials from Circle Offices, Zonal Offices and HO will visit the branches on periodical intervals for on-the-spot assessment of level of Customer Service rendered by them as also the security and safety of assets and people  Based on Customer Service, Bank rewards staff members in branches through Incentive Linked Quiz Contest on monthly basis to encourage them to acquire knowledge of Banking Products/ Schemes to improve customer service.  Bestows Best Circle Award on half yearly basis for rendering excellent customer service.  During the audit of branches by Regular Auditor/ Concurrent Auditor, report on the Customer Service shall make a part of regular Audit Report / Quarterly Audit Report for submission of critical comments.  Bank to observe Customer Contact Week every year which is dedicated to improvement in customer service in the Bank.  Customers’ Day is observed on 10th of every month or next working day, if 10th is a holiday. On this day, Branch Manager/Second Man at Branch, should be available at the Branch to meet customers between 03:00 PM and 05:00 PM without any prior appointment.  Customer Relations programs are to be conducted twice a year at Circle Office level, wherein customers from different segments are to be invited and their grievances/ suggestions are to be looked into.  Bank has Customer Service Committees in all Circle Offices/ Branches to look into the quality of customer service rendered and critically examine the feedback/suggestions for improvement in customer service. These committees meet once in a month where staff and invited customers interact freely on service-related issues. Two nominated non-official members are invited in the meeting to be held on quarterly basis in the Circle Level Customer Service Committee Meeting.  A pensioner is nominated as a member of the Customer Service Committee at Branches and Circle Offices. Wherever a pensioner is not available, a senior citizen may be made a member of Customer Service Committee  Second Man at Circle Offices (not below the rank of Scale IV) and Zonal Offices (not below the rank of Scale VI) shall be the Quality Assurance Officers for ensuring that the intent of the Policy is translated into the content and its eventual translation into proper procedures.  The ownership of the Policy in terms of its review/modification/approval shall lie with HO: Customer Care Centre POLICY FOR GENERAL MANAGEMENT OF BRANCHES 2  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem) CUSTOMER COMPENSATION POLICY FOR THE YEAR 2024-25 (CUSTOMER CARE CENTRE CIRCULAR NO. 19/202) Date: 18-04-2024  Compensation Policy of Bank is designed to cover areas relating to unauthorized debiting of account, unauthorized Electronic Banking transactions, Payment of interest to customers for delay in collection of cheques / instruments, payment of cheques after acknowledging stop payment instructions, remittances within India, foreign exchange services, lending, ASBA, etc. The policy is based on principles of transparency and fairness in treatment of the customers and regulatory guidelines. UNAUTHORIZED / ERRONEOUS DEBIT 1. Erroneous Debits arising on fraudulent or other transactions: If the bank has raised an unauthorized/erroneous direct debit to an account, the entry will be reversed immediately on being informed of the erroneous debit, after verifying the position. Due to this error if any charge/loss incur to customer same be reversed/paid. 2. Liability of a Customer or Bank in unauthorized electronic Banking Transactions: A. Zero Liability of a Customer a). A customer’s entitlement to zero liability shall arise where the unauthorized transaction occurs in the following events: i) Contributory fraud/ negligence/ deficiency on the part of the bank (irrespective of whether or not the transaction is reported by the customer) ii) Third party breach where the deficiency lies neither with the bank nor with the customer but lies elsewhere in the system, and the customer notifies the bank within three working days of receiving the communication. Here, the communication means information to customer through SMS, mails, passbook and other means B. Limited Liability of a Customer A customer shall be liable for the loss occurring due to unauthorized transactions in the following cases: a) In cases where the loss is due to negligence by a customer, such as where he has shared the payment credentials, the customer will bear the entire loss until he reports the unauthorized transaction to the bank. b) In cases where the responsibility lies elsewhere in the system and the customer notifies such transaction on fourth to seventh day after receiving the communication from the bank, the per transaction liability of the customer shall be limited to the transaction value or the amount mentioned below, whichever is lower. c) Further, if the delay in reporting is beyond seventh working day, the customer liability shall be determined as under: The customer will bear the entire loss until he reports the unauthorized transaction to the bank. However, depending on case-to-case basis, Bank may compensate customer an amount of maximum Rs. 25000/- (if reported within 30 days), irrespective of the fact whether there is single or multiple number of transactions or transaction amount, whichever is lower.  Reversal Timeline for Zero Liability/ Limited Liability of a Customer: within 10 working days from the date of such notification by the customer. CUSTOMER COMPENSATION POLICY FOR THE YEAR 2024-25 1  This study material is only for upgrading knowledge, for decision making in credits / banking –Refer Guidelines as circulated/updated by bank meticulously (Prepared By Mohd Nadeem)  Burden of Proof lies with the bank’s Alternate Delivery Channel Reconciliation Cell (ADC Recon) in case of unauthorized electronic transactions and by FRMD in case of fraudulent electronic transactions.  In case verification of the entry reported to be erroneous by the customer does not involve a third party: The bank will endeavour to complete the process of verification within a maximum period of seven working days from the date of reporting of erroneous debit.  In case, the verification involves a third party or where verification is to be done at overseas centres, the bank shall complete the verification process within a maximum period of one month from the date of reporting of erroneous transaction by the customer.  Where it is established that bank had issued and activated a credit card without written consent of the recipient, the bank would not only reverse the charges immediately but also pay a penalty without demur to the recipient amounting to twice the value of charges reversed as per regulatory guidelines in this regard  In case a cheque has been paid after stop payment instruction is acknowledged by the bank, the bank shall reverse the transaction within two working days after receiving the intimation and give value-dated credit to protect the interest of the customer. Any consequential financial loss to the customer will be compensated.  ECS direct debits / other debits to accounts: 1. The bank will undertake to carry out direct debit / ECS debit instructions of customers in time. In the event the bank fails to meet such commitments, customer will be compensated to the extent of any financial loss customer would incur on account of delay in carrying out the instruction/ failure to carry out the instructions 2. The bank would debit the customer’s account with any applicable service charge as per schedule of charges notified by the bank from time to time and displayed on bank’s website www.pnbindia.in, which will be a notice to the public at large. In the event the bank levies any charge in violation of the arrangement, the bank will reverse the charges when pointed out by the customer subject to scrutiny of agreed terms and conditions. Any consequential financial loss to the customer will also be compensated.  Interest for delayed collection shall be paid at the following rates: If the proceeds of cheque under collection were to be credited to Savings Bank or Current account of the customer, interest at the rate of Saving Bank Rate for the period of delay beyond 3 working days would be paid. If the proceeds of cheque under collection were to be credited to an overdraft/loan account of the customer, interest will be paid at the rate applicable to the overdraft/loan account beyond 3 working days.  Delays in Collection of Outstation Cheques and other Negotiable Instruments in India If the proceeds of cheque under collection were to be credited to Savings Bank or Current account of the customer, (i) Savings Bank rate for the period of delay beyond 7/10/14 days as the case may be in collection of outstation cheques. (ii) Where the delay is beyond 14 days but up to 90 days, interest will be paid at the rate applicable to term deposit for the corresponding period or Saving Bank rate, whichever is higher. (iii) In case of extraordinary delay, i.e., delays exceeding 90 days interest will be paid at the rate of 2% above the rate applicable to term deposit for the corresponding period. (if OD/loan account is to be credited then interest will be paid at the rate applicable to the overdraft/loan account.)  Authorized Dealers shall pay or send Intimation to the beneficiary in two working days from the date of receipt of credit advice / Nostro statement. In case of delay,