DOMESTIC CREDIT RELATED

SERVICE CHARGES

[Strictly Confidential – For Internal Circulation only]

(w.e.f. 01ST July 2017)

CIRCULAR NO:

DEPT: CREDIT (POLICY & REVIEW)

HEAD OFFICE, BANGALORE

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 TABLE OF CONTENTS

No Topic Page

1 Charges on Local Cheques/Drafts Purchased 5

2 Outstation Cheques/Drafts Purchased 5

3 Outstation Bills Purchased 6

4 Usance Bills Discounted 6

5 Ledger Folio Charges – Operative Limits 7

6 Processing Charges 9

7 Processing Charges - Other Credit 9

8 Upfront fee on Term loan for Project finance 10

9 Charges under Retail Credit 11

10 Other Service Charges 12

11 Godown Visit Charges 15

12 Inspection Charges 15

13 Jewel Appraising Charges 17

14 Commitment/Preclosure/Prepayment charges 17

15 Charges under Consortium lending 20

16 Charges for substitution of Shares and Debentures 20

17 Charges on Bank Guarantees 21

18 Charges on Inland Letter of Credit 25

19 Charges on issue of Solvency Certificates 29

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DOMESTIC CREDIT RELATED SERVICE CHARGES – 2017

[w.e.f. 01st July 2017]

FUND BASED CREDIT FACILITIES

I. CHARGES ON PURCHASE / DISCOUNT OF BILLS / CHEQUES

(1) Local cheques / Drafts purchased

SERVICES OTHER THAN INDIVIDUALS IN INDIVIDUALS IN

INDIVIDUALS OTHERTHAN RURAL AREAS
RURAL AREAS
No collection charges; No collection charges; No collection charges;
however, interest at however, interest at however, interest at
the maximum rate for the maximum rate for the maximum rate for
All cases
the number of days the number of days the number of days
the bank is out of the bank is out of the bank is out of
funds funds funds

NOTE / EXPLANATIONS
1. Commission collected is to be credited to Commission received account.
2. Branches may purchase local cheques up to the face value of Rs.15,000/-
deposited by individuals but not presented in the day's clearing, by adhering to
all precautionary guidelines and debit to Instrument Purchased At Par
(IPAP)account. However, in the event of return of such instruments and where
the party has drawn the amount, interest along with penal interest should be
charged till the amount is recovered in full

(2) Out-station cheques / Drafts purchased

INDIVIDUALS IN INDIVIDUALS IN
OTHERTHAN RURAL AREAS
SERVICES OTHER THAN RURAL AREAS
INDIVIDUALS

Collection charges as Collection charges as Collection charges as

applicable to applicable to applicable to
collection of cheques collection of cheques collection of cheques
for the respective slab for the respective slab for the respective slab
All cases + Postal tariff + + Postal tariff + + Postal tariff +
Interest for 7 days as Interest for 7 days as Interest for 7 days as
applicable to the applicable to the applicable to the
category of the category of the category of the
borrower borrower borrower

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NOTE / EXPLANATIONS
1. Collection Charge is to be credited to Commission Account, Postal Tariff to
Postage and interest to Interest on Demand Bills Account.
2. Charges should be collected at the time of purchase.
3. 7 days period is the period by which normally bills/cheques payable on
Demand expected to be realised.
4. Penal interest, if any, should also be charged from the 8th day of its purchase
up to the date of realisation crediting to Interest on Demand Bills Account.

(3) Out-station Bills purchased

INDIVIDUALS IN INDIVIDUALS IN
OTHER THAN OTHERTHAN RURAL AREAS
SERVICES RURAL AREAS
INDIVIDUALS

Collection charges as Collection charges as Collection charges as

applicable to collection applicable to collection applicable to collection
of bills for the of bills for the of bills for the
respective slab given respective slab given respective slab given
All cases above + Postal tariff + above + Postal tariff + above + Postal tariff +
Interest for 7 days as Interest for 7 days as Interest for 7 days as
applicable to the applicable to the applicable to the
category of the category of the category of the
borrower borrower borrower

NOTE / EXPLANATIONS
1. Collection Charges is to be credited to Commission Account, Postal Tariff to
Postage and interest to Interest on Demand Bills Account.
2. Charges should be collected at the time of purchase.
3. Seven days period is the period by which normally bills/cheques payable on
Demand expected to be realised.
4. Penal interest, if any, should also be charged from the 8th day of its purchase up
to the date of realisation crediting to Interest on Demand Bills Account

(4) Local / Out-station (Usance) Bills Discounted

INDIVIDUALS IN INDIVIDUALS IN
OTHER THAN
OTHERTHAN RURAL AREAS
SERVICES INDIVIDUALS
RURAL AREAS
Collection charges at Collection charges at Collection charges at
0.28% of the bill 0.25% of the bill 0.23% of the bill
amount + GST+Postal amount + GST + amount + GST +
tariff + Interest at the Postal tariff + Interest Postal tariff + Interest
All cases effective rate relating at the effective rate at the effective rate
to the number of days relating to the number relating to the number
of usance as of days of usance as of days of usance as
applicable to the applicable to the applicable to the
category of the category of the category of the
borrower from the borrower from the borrower from the

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 date of discount to the date of discount to the date of discount to the
due date due date due date

NOTE / EXPLANATIONS
1. Collection Charge is to be credited to Commission Account, Postal Tariff to
Postage and interest to Discount on Bills Discounted Account.
2. Charges should be collected at the time of Discount.
3. Penal interest, if any, should also be charged from the due date up to the date
of realisation crediting to Discount on Bills Discounted Account

General:

a) In case of Bills purchased /discounted and sent for collection to our branches,
the date of realisation for the purpose of collection of interest / penal interest
shall mean the date of payment made by the drawee to our collecting branch
and not the date of reversal of entry at the negotiating branch.
b) In respect of bills purchased/discounted and sent for collection to other bank's
branches, the date of realisation for the purpose of collecting interest/penal
interest shall mean the date of reversal of entry at the negotiating branch and
not the payment at the collecting bank.
c) If the drawer instructs that overdue penal interest is to be collected from the
drawee and the bills are sent to other bank's branches for collection, the
overdue/penal interest for the period from the date of retirement of the bills to
the date of reversal of the entry is to be collected from the drawer of the bills.
d) In case of cheques / bills purchased/discounted returned unpaid, the entire
applicable charges prescribed, if any, as above along with interest / overdue
interest is to be recovered from the party.
e) Purchase of cheques/ drafts/ instruments up to face value of Rs.15,000/- drawn
favouring individuals
In terms of the circular 143/2002 dated 15/11/2002, in pursuance of RBI
directives, immediate credit should be given in respect of instruments up
to the face value of Rs.15,000/- received for collection, subject to recovery of
normal collection charges.

(II) LEDGER FOLIO CHARGES – OD / CC / LOANS :

INDIVIDUALS IN INDIVIDUALS
OTHER THAN OTHERTHAN IN RURAL
SERVICES RURAL AREAS AREAS
INDIVIDUALS

a) In case of Ledger
Folio (one side of a
ledger sheet) Rs.218/- + GST Rs. 218/- + GST per Rs. 218/- + GST
per folio folio per folio

b) In case of
computerised sheets
(40 entries or part

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 thereof considered Rs.220/- + GST Rs.220/- + GST per Rs.220/- + GST
as one ledger per folio folio per folio
page/folio)
However, to the extent shown below, free folios annually are allowed depending
on the daily average credit balances maintained by the Account Holders (on
quarterly basis) and OD (Secured) accounts covered fully against Term deposits
with requisite margin, folio charges are exempted.
OTHER THAN INDIVIDUALS INDIVIDUALS
INDIVIDUALS IN IN RURAL
SERVICES OTHERTHAN AREAS
RURAL AREAS
Up to Rs 25,000/- Nil Nil Nil
Rs 25,001/-to Rs Nil 3 3
50,000/-
Rs 50,001/- to Rs 3 5 5
1,00,000/-
Rs.1,00,001/- to Rs 5 10 10
2,00,000/-
Rs 2,00,001/- to 10 All All
Rs.5,00,000/-
Above Rs 5,00,000/- All All All

NOTE / EXPLANATIONS
1. Folio Charges is to be credited to Incidental Charges Account.
2. This charge should be collected on all OD, CC and loan accounts. However,
LTD accounts are exempted from levying of these charges. In respect of
Consumer loans and Jewel loan, the charges are as prescribed by the Bank for
each scheme.
3. The exemption clause stipulated for allowing free folios is to be made applicable
to OD and CC accounts provided the accounts are running in credit balance and
the average credit balance in such cases for the purpose of ledger folio charges
should be reckoned by setting off debit products against credit products.
4. Ledger folio charges should be levied on quarterly basis in respect of OD, OLCC
and KLCC accounts. The charges should be collected on quarterly intervals only
on completed page or folio/s. At the end of the calendar year, part of the page
/ folio shall be treated as full folio and charges shall be collected accordingly.
5. In respect of other loan accounts like term loans where the operations in the
accounts are limited, it should be ensured that the ledger folio charges is not
collected on the folio on which the charges was collected in the preceding year.
6. In cases where the accounts are closed any time before the end of the calendar
year applicable ledger folio charges should be collected at the time of closure.

(III) Processing charges/Upfront fee :

(1) ALL AGRICULTURE CREDIT:

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 Processing charges/Upfront fee for agricultural loans-both for
working capital/term loans (either fund based or non fund based);
these charges are applicable to Vijaya Kisan Card and Vijaya Planters
Card loans also

SERVICES OTHER THAN INDIVIDUALS IN INDIVIDUALS IN

INDIVIDUALS OTHERTHAN RURAL AREAS
RURAL AREAS
Up to & Inclusive Nil NIL NIL
of Rs.25,000/-
0.50%+GST 0.30%+GST with 0.20%+GST with
Rs.25,001/- to with a a minimum of a minimum of
Rs.2.00 lakhs minimum of Rs.250+GST Rs.200+GST
Rs.500+GST
Above Rs.2.00 0.50%+GST 0.25%+GST 0.20%+GST with
lakhs to Rs.1.00 a maximum of
Crore Rs.15000/-
Above Rs.1.00 Rs.600+GST Rs.500+GST per Rs.300+GST per
crore per lakh with a lakh with a lakh with a
maximum of maximum of Rs.20 maximum of Rs.7
Rs.20 Lakh+GST Lakh+GST
Lakh+GST

(2) ALL ADVANCES OTHER THAN AGRICULTURE (For Working Capital)

Other than Individuals in Individuals

Individuals other than in Rural
Rural areas areas

Up to Rs.25,000/- Rs.250+GST Rs.200+GST Rs.150+GST

Rs.25,001/- to Rs.2,00,000/- 0.50%+GST 0.30%+GST 0.20%+GST

with a with a minimum with a
minimum of of Rs.250+GST minimum of
Rs.500+GST Rs.200+GST

Above Rs.2.00 lakh to Rs.100 0.50%+GST 0.25%+GST 0.20%+GST

lakh with a
maximum of
Rs.15000+GST

Above Rs.100 lakhs Rs.600+GST Rs.500+GST per Rs.300+GST

per lakh with a lakh with a per lakh with a
maximum of maximum of maximum of
Rs.20 Rs.20 Lakh+GST Rs.7
Lakh+GST Lakh+GST

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 (3) Upfront fee on Term loan (Other than those mentioned under Table III(4)

INDIVIDUALS IN INDIVIDUALS
OTHER THAN OTHERTHAN IN RURAL
SERVICES RURAL AREAS AREAS
INDIVIDUALS

a. Loan upto Rs.30 crore

For Project Loans 1%+GST 0.75%+GST 0.75%+GST

Other than project 1%+GST 0.75%+GST 0.75%+GST

loans
b. Loan above Rs.30
crore
For Project Loans Rs.1200+GST per Rs.1105+GST per Rs.1105+GST per
lakh lakh lakh
Other than project Rs.600+GST per lakh with a maximum of Rs.75 Lakh+GST
loans

[Project Finance would mean where the purpose of Term loan is towards meeting
either in whole or in part [Eg : under Consortium or Multiple lending] the term
debt/s required as a source for establishing a project]

Only upfront fee will be collected for all types of Term loans whereas for
working capital limits processing charges will be collected.

1. As per RBI Master Circular No.RBI/2014-15/95,

RPCD.CO.Plan.BC.10/04.09.01/2014-15 Dt.01.07.14, No loan related and adhoc
service charges/inspection charges should be levied on priority sector loans upto
Rs.25000;
2. Loans under MSE sector upto Rs.5.00 Lakh are exempted from processing
charges/Upfront fee
3. Service Charge is to be credited to Processing Charges Account.
4. With the introduction of processing charges on agricultural loans, the concept
of evaluation fee is discontinued.
5.Processing charges should be collected at the time of initial processing, each
renewal/enhancement of limit/adhoc increase in limit as also while permitting
continuance of the limit beyond annual review due date, in respect of all credit limits
including Non-fund based limits.
6. As far as possible, Processing Charges should be collected at the time of receipt
of loan application itself. However, in respect of renewal of credit limits, processing
charges should be collected as soon as renewal sanction is received and collection
of charges should not be deferred till the documentation of the renewal credit
limits.
7. The amount collected as processing charges can be refunded only if the Bank
turns down the proposal. The amount so collected shall not be refunded if the
borrower fails to avail the loan/limit sanctioned or to comply with the Bank's
requirement in furnishing necessary information/documents.
8. Processing charges are not to be collected in the following cases:

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 a) Loans/advances exclusively against our own deposits.
b) Issuance of solvency certificate.
c) Loans/advances exclusively against Government securities (if accepted as
prime securities and not as collateral securities).
d) Loans granted under REC-SPA Schemes.
e) In respect of limits granted to RRBs sponsored by our Bank.
f) In respect of FDBP/FUDBP transactions covered under the L Cs of
Prime Banks
g) For enhancement/modification before the date of annual renewal,
processing charges shall be collected for the enhanced portion only.
h) Generally the tenure of working capital limits is one year from the date of
sanction/renewal. Therefore, processing charges for working capital limits
are expected to be an annual (per annum) levy irrespective of whether
actual renewal has taken place or not. In order to ensure that there is no
leakage of income, branches/offices are advised as under:
(I) In case of extension of credit limits, pro-rata processing charges should
be collected for the extended period.
(II) In case renewal of limits does not take place within the extended period,
pro-rata processing charges are to be collected on the existing limits till
the date of ultimate renewal of the limits.
9. For Adhoc facilities extended under Discretionary Powers too, processing charges
are to be collected.
10. In the case of parties availing agricultural and non-agricultural limits/loans, all
the limits are to be clubbed and if the same exceeds Rs.25,000/- the charges
mentioned above are to be collected.
11. In respect of operative facilities under Agriculture like Agricultural OD,
Agricultural Cash Credit, Vijaya Krishi Card. Vijaya Krishi Vikas, Vijaya Planters Card,
etc., the processing charges shall be collected on annual basis on the limit fixed.
12. For Credit facilities, temporary in nature, permitted under the discretionary
powers of any authority, processing charges are to be levied invariably for the
entire period.
(4) OTHER SPECIAL SCHEMES UNDER RETAIL CREDIT:

SERVICES OTHER THAN INDIVIDUALS IN INDIVIDUALS IN

INDIVIDUALS OTHERTHAN RURAL AREAS
RURAL AREAS
VHL/Vijaya Kisan 0.50%+GST with a minimum of Rs.1000/- +GST and
HL/V-Elite Home maximum Rs.20000/- +GST
Loan/*PMAY –
EWS/LIG/MIG- *No processing charges to be collected from PMAY CLSS
1,MIG-2 beneficiaries upto the loan limit eligible for subsidy under
the scheme. Above the eligible limit, charges as applicable
for VHL should be collected(HOCL 17180 dated 07.06.2017).
Vijaya Top-Up/V- 0.25%+GST with a maximum of Rs.10000/- +GST
Reverse Mortgage
Vijaya Home Loan Rs.500+GST
Plus
V-Wheels
Up to Rs.1 lakh Rs.500+GST

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Above Rs.1 Lakh 0.50%+GST with a minimum of Rs.1500+GST and max of
Rs.10000+GST
Education Loans up to NIL NIL NIL
Rs.10 lakhs
Education Loans above 0.75%+GST 0.75%+GST 0.75%+GST
Rs.10 lakhs
Jewel Loan (Applicable to both Priority & Non Priority)
Upto Rs.25,000/- Not applicable NIL NIL
Above Rs.25,000/- Not applicable 0.50%+GST with a 0.50%+GST with a
minimum of minimum of
Rs.500/- +GST and Rs.500/- +GST and
maximum of maximum of
Rs.2500/- +GST Rs.2500/- +GST
Note: Jewel Loan account closure charges : Rs.100 + GST (HOC 17096 dated
25.05.2017).

(IV) OTHER SERVICE CHARGES APPLICABLE

N Nature of SLAB RATE IN RUPEES

o Charges

1 Sanction revival Upto Rs.25 Lakh NIL

charges
Above 25 lakh – Rs.5 Crore Rs.5000+GST

Above Rs.5 Crore – Rs. 10 Crore Rs.25000+GST

Above Rs.10 Crore – Rs.25 Crore Rs.100000+GST

Above Rs.25 Crore Rs.200000+GST

2 Sanction Terms Up to Rs.1 Crore Rs.5000+GST

modification/ame
ndment charges Above Rs.1 Crore- Rs.50 Crore Rs.10000+GST

Above Rs.50 Crore Rs.1 lakh+GST for

each modification

3 Credit Per report per bank Rs.50/-+ GST

Information
/Confidential
Report Charges

4 Debt Rs.10.00 lakhs and below NIL

Restructuring
Charges Over Rs.10.00 lakhs to Rs.1.00 Rs.5000+GST- each
crore time

Over Rs.1.00 crore to Rs.10 crore Rs.10000+GST- each

time

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 Over Rs.10.00 crore Rs.20000+GST- each
time

5 Term loan review Aggregate reviewed amount 0.10%+GST of

charges reviewed amt

Maximum Rs.25000/-
+GST

6 Fixed/Floating Fixed to Floating 1.00%+GST of

ROI conversion outstanding
charges for Term Floating to Fixed
loans 1.50%+GST of
outstanding

7 Charges for Issue Rs.25.00 lakhs and below Rs.1000+GST per

of letter ceding NOC
Pari-passu Above Rs.25.00 lakhs - Rs.10.00
/second charge crore Rs.10000+GST per
on term loans NOC

Above Rs.10.00 crore Rs.20000+GST per

NOC

8 TEV study and Project appraisal charges as to % of Project cost

vetting charges
as % of Project Rs.50.00 crore and below 0.04% Minimum Rs. 0.29
cost +GST lakhs+GST
Above Rs.50.00 crore to
Rs.100 crore 0.05% Maximum Rs. 2.53
+GST lakhs+GST
Above Rs.100.00 crore to
Rs.500 crore 0.07% Maximum Rs.14.05
+GST lakhs+GST
Above Rs.500.00 crore
0.07% Maximum Rs.25.00
+GST lakhs+GST

Waiver of TEV report/Project appraisal for project cost

of < Rs.50.00 crore

Less than Rs.50.00 crore 0.016 Maximum

%+ Rs.50000+GST
a separate fee shall be GST
recovered in addition to the
ususal processing charges
for additional risk taken by
the Bank due to such
waiver

Following categories are exempted from levy of all the charges mentioned in the above
Table No.IV;

(a) All Direct Agricultural Loans to individuals/Joint borrower/s/JLGs/SHGs;

11
(b) All Loans to Government sponsored schemes;

(c) Loans under VGCC schemes;

(d) All MSME loans with aggregate sanctioned limits upto Rs.25.00 lakhs;

(e) All other Priority sector loans other than Housing and Education loans with
aggregate sanctioned limits upto Rs.2.00 lakhs;

(f) All direct Loans & advances granted under security of time deposits;

(g) All Staff Loans and advances granted under Staff Loan schemes.

9 Documentation Rs.2.00 lakh and below NIL

charges
Above Rs.2.00 lakh

Clean 0.10%+GST – Min of

Rs.500+GST and maximum of
Rs.25000+GST

Secured 0.15%+GST – Min of

Rs.750+GST and maximum of
Rs.30000+GST

Exempted category for levying of Documentation charges

The following categories are exempted from levy of Documentation Charges;

(a) All Direct Agricultural Loans to individuals/Joint borrower/s/JLGs/SHGs;

(b) All Loans to Government sponsored schemes;

(c) Loans under VGCC schemes;

(d) All MSME loans with aggregate sanctioned limits upto Rs.25.00 lakhs;

(e) All other Priority sector loans other than Housing and Education loans with
aggregate sanctioned limits upto Rs.2.00 lakhs;

(f) All direct Loans & advances granted under security of time deposits;

(g) Jewel Loans upto Rs.2.00 lakhs

(h) Education loans upto Rs.7.50 lakhs.

(i) All Housing Loans

(j) All Staff Loans and advances granted under Staff Loan schemes.

(V) GODOWN/FACTORY/UNIT/WORKS VISIT CHARGES FOR PLEDGE /

RELEASE [GENERAL]

Up to Rs.25,000/- Nil Nil Nil

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 Above Rs.25,000/- and up Rs.250+GST per Rs.230+ GST per Rs.215+ GST per
to and inclusive of Rs.2.00 visit. visit. visit.
lacs
Rs.380+ GST per Rs.345+ GST per Rs.315+ GST per
Above Rs.2.00 lakhs
visit. visit. visit.

NOTE / EXPLANATIONS
1. The charges mentioned in Table (11) are to be credited to Conveyance
Charges Account.
2. Halting allowance, travelling allowance etc. paid to staff for conducting
godown inspection are to be recovered from the parties concerned, in addition
to the charges mentioned above.
3. In the following cases also, godown charges mentioned above are to be
collected.
a) In cases where conveyance is provided by the party for inspection of the
godown/Factory/Unit/Works.
b) In cases where the godown is situated nearby the branch premises and
no expenses are incurred for conducting inspection.

(VI) INSPECTION CHARGES :

(1) Priority Sector Advances (Other than HL/V-Wheels

INDIVIDUALS INDIVIDUALS
OTHER THAN
IN OTHERTHAN IN RURAL
SERVICES INDIVIDUALS
RURAL AREAS AREAS
Up to and NIL NIL NIL
inclusive of
Rs.5,000/-
Above Rs.5,000/- Rs.100+GST per inspection
and up to
Rs.25,000/-
Above Rs.25,000/- Rs.200+GST per inspection or actual expenses whichever is
and up to and higher.
inclusive of
Rs.2.00 lakhs
Above Rs.2.00 Rs.250+GST per inspection or actual expenses whichever is
lakhs higher

(2) VHL/Vijaya Kisan HL/Vijaya Top-Up/V-Reverse Mortgage

INDIVIDUALS INDIVIDUALS
IN IN RURAL
SERVICES OTHER THAN
OTHERTHAN AREAS
INDIVIDUALS
RURAL
AREAS

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 Up to Rs.10 lakh Rs.2000+GST
Above Rs 10 lakh Rs.4000+GST

(3) V-Wheels

INDIVIDUALS INDIVIDUALS
IN IN RURAL
SERVICES OTHER THAN
OTHERTHAN AREAS
INDIVIDUALS
RURAL
AREAS
Up to Rs.1 lakh Rs.500+GST
Above Rs 1 lakh and upto
Rs.2000+GST
Rs.10 Lakh
Above Rs.10 Lakh Rs.4000+GST

(4) Non priority

Advances like Working Capital and Term Loans secured by tangible

Primary and Collateral assets
INDIVIDUALS INDIVIDUALS
OTHER THAN
IN OTHERTHAN IN RURAL
SERVICES INDIVIDUALS
RURAL AREAS AREAS
Upto Rs.5,000/- NIL NIL NIL
Above Rs.5,000 Rs.100+GST per inspection.
and upto
Rs.25,000/-
Above Rs.25,000 Rs.200+GST per inspection or Actual expenses whichever
and upto Rs.2 is higher
lakhs
Above Rs.2 lakhs Rs.750+GST per quarter
and up to Rs.10
lakhs
Above Rs.10 lakh Rs.1500+GST per quarter

NOTE / EXPLANATIONS:
1. Service Charge is to be credited to Incidental Charges Account.
2. Care should be taken to ensure that the inspection charges on advances to
weaker sections in the priority sector are lower than that of the rate of charges
to such inspection in other cases.
3. Inspection charges include those for pre-sanction inspection, post-sanction and
godown inspection charges also. However, for loans above Rs.2 lakhs the
charges prescribed are only minimum charges and the branch may charge higher

14
 depending upon the work-load and duration involved.
4. Inspection charges are to be collected on Suit Filed, Decreed & NPA accounts at
the time of closure of the loan accounts.
5. The inspection in respect of housing loans is to ensure progress of the
construction work till its completion and there afterwards to ensure the existence
of the property and that the same is held in the name of borrower only.
6. Inspection charges should be mentioned in the respective sanction letter for the
information of the borrower in the initial stage itself.
7. Inspection charge is not applicable in case of V-Cash, Jewel Loan and Vijaya
Top-Up Loan

(VII) JEWEL APPRAISING CHARGES

INDIVIDUALS IN INDIVIDUALS
OTHER THAN
OTHERTHAN IN RURAL
SERVICES INDIVIDUALS
RURAL AREAS AREAS
For all amounts Not applicable 0.50%+GST on the 0.45%+GST on
of loans for Corporates loan amount with a the loan amount
minimum of Rs.6/- with a minimum
and maximum of of Rs.6/- and
Rs.255+GST maximum of
Rs.225+GST

Note: Service Charge is to be credited to Jewel Appraising Commission

Account. This has to be credited to the SB account of the Jewel Appraiser on
weekly basis

(VIII) Commitment /Prepayment/Pre-closure Charges :

(1) Commitment Charges

INDIVIDUALS INDIVIDUALS
IN IN RURAL
SERVICES OTHER THAN
OTHERTHAN AREAS
INDIVIDUALS
RURAL
AREAS
For non / under utilisation of
limits in respect of
borrowers enjoying working
capital limits of Rs. 1.00 1.00% p. a.+ 1.00% p. a.+ 1.00% p.a. +
Crore and above [Export GST GST GST.
Credit Limits and Bills
Discounting Limits
sanctioned are exempted]
Note:

i. Whenever fresh sanction is accorded, the sanction letter shall be delivered

to the party only after depositing the commitment charges of 1.00% p. a.+
GST of the fund based limits covered in the sanction, which would be
credited back to the loan account on the date of first availment after
compliance with all sanction terms and conditions.

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ii. Levying of commitment charges at 1.00% p. a.+ GST for under-utilisation
of limits in respect of all the borrowers enjoying working capital limits of
Rs.1 crore and above is mandatory to be collected on a quarterly basis.
iii. In respect of Term Loans relating to Project Finance, at the time of release
of the Term Loan, the branch should invariably obtain a drawdown schedule.
If the drawals are not as per the schedule so submitted with a tolerance of
+ or – 10%, then commitment charge at the rate of 1.00% p. a.+ GST p.a.
on the undrawn portion should be collected without fail.
 In respect of credit facilities extended by us to a borrower under sole
banking or as a member bank under multiple banking arrangement, levy
of commitment charge be made applicable, if only under-utilisation in
the limit is beyond a tolerance level of 50% based on the operative limit
fixed through QIS-I [If QIS-I is in default, the sanctioned limit to be
reckoned for the purpose].
 Where we have extended credit facilities to a borrower under a
consortium arrangement (irrespective of whether we are the leader or
only a member), we may abide by the consensus arrived at in the
consortium, and

Exempted Categories where commitment charges for under-utilisation

need not be levied:-

 All the Export credit limits sanctioned to the borrowers.

 Bills discounting limits sanctioned to the borrowers.

(2) Prepayment / Pre-closure Charges on accounts applicable to those

Credit facilities having Fixed Rate of interest only

OTHER THAN INDIVIDUALS INDIVIDUALS

INDIVIDUALS IN OTHERTHAN IN RURAL
SERVICES RURAL AREAS AREAS
(i) Housing loans – ----- Waived ------ ------ Waived ----- ------- Waived ----
Pre-payment / - -- --
Pre-closure /
Switchover to
other Bank
within 5 years
of availing the
loan
@1.00%+GST on @1.00%+GST on @ 0.91%+GST on
(ii) Pre-Payment of
the amount the amount the amount
loans other
actually pre-paid / actually pre-paid / actually pre-paid /
than Housing
paid before the paid before the paid before the
Loans
due date due date due date

iii) Term Loans 2.00%+GST on 2.00%+GST on 1.82%+GST on

whenever a the outstanding as the outstanding as the outstanding as
reduction in the on date of closure on date of closure on date of closure
interest is agreed or 0.55%+GST on or 0.50%+GST on or 0.45%+GST on
upon the outstanding the outstanding the outstanding
per year for the per year for the per year for the

16
 remaining tenure remaining tenure remaining tenure
of the loan of the loan of the loan
whichever is lower whichever is lower whichever is lower
Note: Prepayment charges shall not be applicable for Working Capital
Limits.

NOTE / EXPLANATIONS
1. Service Charge is to be credited to Incidental Charges Account.
2. The pre-closure/ pre-payment/ fore-closure charges are not applicable on all
term loans carrying floating rate of interest sanctioned to individual borrowers
(other than loans to proprietorship concern).
3. Other than individuals, waiver of Prepayment/pre-closure/ foreclosure
charges in respect of Term Loans having floating rate of Interest is permitted
if Term Loan is pre-closed out of own funds of the borrower subject to approval
by the competent authority i.e. GMLCC, HO in respect of Credit sanctions
accorded by Regional Head and below and in all other cases it shall be the
respective sanctioning authority at HO
4. Whenever any prepayment of installment stipulated in term loans or pre-
closure/foreclosure of the entire term loan takes place in respect of term loans
with Fixed Rate of interest, such account shall attract prepayment/ pre-closure
charges
5. Wherever a concessional rate of interest has been approved over the ROI
chargeable under Risk Based pricing on Term Loans with Fixed rate of interest,
such loans shall invariably carry prepayment penalty at the rates mentioned
below on outstanding dues on the date of payment
6. Whenever Credit facilities sanctioned with Fixed rate of interest are
subsequently converted to Floating rate of interest (after collecting the
applicable conversion charges), either at the option of the Borrower or as per
the provisions of such schemes in force (including Loans under Retail lending
schemes), such cases will not attract pre-closure/ prepayment/ foreclosure
charges, from the date of such conversion to floating rate of interest regime,
provided, such facility/ies remain with the Bank for a minimum period of six
months from the date of such conversion. An express undertaking to that
effect shall be obtained from the borrower at the time of documentation
7. Advance payment of the installments pertaining to the current financial year is
kept outside the purview of ‘Pre-payment’ concept
8. The delegatee for waiver of Prepayment/pre-closure/foreclosure charges for
justifiable reasons shall be the GMLCC, HO in respect of Credit sanctions
accorded by Regional Head and below and in all other cases it shall be the
respective sanctioning authority at HO

(IX) Charges under Consortium Lending:

SERVICES OTHER THAN INDIVIDUALS IN INDIVIDUALS IN

INDIVIDUALS OTHERTHAN RURAL AREAS
RURAL AREAS

17
 All cases Charges decided by Charges decided by Charges decided by
Consensus, in the Consensus, in the Consensus, in the
Consortium Consortium Consortium
meeting and meeting and meeting and
approved by the approved by the approved by the
competent competent competent
authority. authority. authority

NOTE / EXPLANATIONS
1. Wherever we are leaders in the consortium, the lead bank fee is to be
collected on the total working capital credit limits (fund based and non-fund
based limits put together) from the consortium, at 0.125%+GST on the total
loan sanctioned in respect of borrowal accounts which are;

i. Classified as Standard Asset in all the Banks;

ii. All Export oriented Units whose accounts are Standard Assets.

2. Wherever branches/offices extend entire non-fund based credit facilities

under consortium on behalf of all the member banks, only 70% of the
commission and other charges collected on such non-fund based limits plus
GST is to be shared among all the consortium banks (including our Bank)
retaining 30% of the commission towards service charges.
3. All other charges like godown inspection charges, folio charges are to be
recovered from the borrower and these need not be shared among the
member banks.
4. In the case of consortium meetings, TA, HA etc., paid to staff and also other
out-of-pocket expenses incurred for convening the meeting are to be
recovered from the parties.

(X) Substitution of shares/ debentures:

OTHER THAN INDIVIDUALS IN INDIVIDUALS IN

INDIVIDUALS OTHERTHAN RURAL AREAS
SERVICES RURAL AREAS
Rs.125+GST per Rs.115+GST per Rs.105+GST per
All cases
substitution. substitution. substitution.

NOTE / EXPLANATIONS: Service Charge is to be credited to Incidental

Charges Account.

(XI) CIC Report Charges:

Consumer Commercial
SERVICES Rs.100 + GST Rs.1200 + GST
(XII) General Information:

a) ALL OUT-OF-POCKET EXPENSES actually incurred for servicing the

borrowal accounts such as recovery visits, insurance, valuation charges
payable to approved valuers, legal opinon charges in respect of land,

18
 building, plant, machinery, vehicles, sending notices etc., should be
collected from the borrower.
b) LEGAL CHARGES, If any, are to be collected separately and credited to
Law charges account.
c) Expenses incurred for attending consortium meetings/inspection of
factory etc., should be recovered from borrower.
NON-FUND BASED CREDIT FACILITIES

(1) PROCESSING CHARGES ON NON-FUND BASED CREDIT FACILITIES

AMOUNT OF OTHER THAN INDIVIDUALS IN INDIVIDUALS IN

FACILITY INDIVIDUALS OTHER THAN RURAL AREAS
RURAL AREAS
Up to Rs.25000 Rs.250+GST Rs.200+GST Rs.150+GST
Above 0.50%+GST with a 0.30%+GST with a 0.20%+GST with
Rs.25000- minimum of minimum of a minimum of
Rs.2.00 lakh Rs.500+GST Rs.255+GST Rs.200+GST
Above Rs.2 0.50%+GST 0.25%+GST 0.20%+GST with
lakh- Rs.100 a maximum of
Lakh Rs.15000+GST
Above Rs.1 Rs.600+GST per Rs.500+GST per Rs.300+GST per
Crore lakh with lakh with lakh with
maximum of Rs.20 maximum of Rs.20 maximum of Rs.7
Lakh +GST Lakh +GST Lakh +GST

(2) CHARGES ON BANK GUARANTEES:

INDIVIDUALS INDIVIDUALS
OTHER THAN
IN OTHERTHAN IN RURAL
SERVICES INDIVIDUALS
RURAL AREAS AREAS
Rs.555+GST plus Rs.505+GST plus Rs.455+GST plus
0.55%+GST per 0.50%+GST per 0.45%+GST per
i. Performance
quarter or part quarter or part quarter or part
guarantees
thereof + Out of thereof + Out of thereof + Out of
pocket expenses pocket expenses pocket expenses
ii. Other than Rs.555+GST plus Rs.505+GST plus Rs.455+GST plus
performance 0.55%+GST per 0.50%+GST per 0.45%+GST per
guarantees (like quarter or part quarter or part quarter or part
financial thereof + Out of thereof + Out of thereof + Out of
guarantees / DPG pocket expenses pocket expenses pocket expenses
/ Co-acceptance
etc.)
25% of the
25% of the normal 25% of the normal
iii. Guarantees / normal
commission / rate commission / rate
DPGs / Co- commission / rate
on issue of such on issue of such
acceptances fully on issue of such
guarantees with a guarantees with a
secured by 100% guarantees with a
minimum of minimum of Rs.
cash margin or by minimum of
Rs.505+GST+ Out Rs.455+GST out
Term Deposits of Rs.555+GST +
of pocket of pocket
our Bank. Out of pocket
expenses expenses
expenses

19
NOTE / EXPLANATIONS
1. Processing Charges to be credited to Processing Charges Account, Out
of pocket expenses to Incidental Charges and commission to
Commission Received Account.
2. If the period of guarantee including claim period is less than 3 months, a
minimum commission of Rs.500+GST plus Commission applicable to 3
months shall be collected.
3. Commission on guarantees is based on the guarantee amount and not on
the guarantee limit sanctioned. Each time a guarantee is issued, charges
should be collected based on the guarantee amount and the period.
4. Commission is to be rounded off to the nearest rupee.
5. While calculating the concession on commission, no concession should be
given in the base commission of Rs.500+GST.
6. If the above guarantee becomes fully secured by our term deposits at a
later date, after the issue, pro-rata concession on commission can be
charged by refunding the excess commission collected.
7. While calculating commission on the guarantee, the commission for the
claim period given over and above the guarantee period also should be
collected.
8. Commission is to be collected for the entire period if the guarantee
remains outstanding beyond the validity period for which the guarantee
is issued due to any primitive action initiated by the borrower for making
payment to the beneficiary such as stay orders from the Court,
arbitration proceedings, etc.
9. In case of guarantee issued less than a year, no refund of commission
is to be made if the guarantee is cancelled in between.

Other issues on Bank Guarantees:

Renewal of Guarantees:

If the guarantee is renewed before the expiry of the original period,

commission on renewed period shall be charged by deducting the original
claim period, as the bank would have already charged for the original
claim period. For instance, a guarantee issued for one year period with a
claim period of 3 months is renewed for a further period of one year with
a claim period of say 4 months, before expiry of original period of one
year, commission for the renewed period of one year plus additional claim
period of one month (i.e. 4 months minus original claim period of 3
months) should be charged in this case. Since the total chargeable period
is 13 months (12 months plus one month additional claim period)
commission for a total of 5 quarters should be collected as part of the
quarter should be treated as full quarter. In case of renewals of
guarantees issued for a period of 1 year or less, the method of calculation
of commission as provided under extension of guarantees should be
followed. However, if there is any change in the claim period, the same
should be appropriately taken into account while calculating the
commission.

20
Extension of Guarantee:

i) In the case of extension of guarantees issued for a period of one year or

more (including claim period), charges for the extended period only should
be charged.
For instance, if a performance guarantee for Rs.1,00,000/- issued for 12
months period with a claim period of 3 months is extended at the end of
the nine months, for a further period of 3 months, commission on the
extended period of 3 months only should be collected.

ii) In the case of Guarantees issued for a period of one year or less is
extended, and the extended period plus original period including claim
period is one year or less, no additional commission except for the Base
commission need be collected as the Bank might have already collected
the minimum commission.
iii) In the case of Guarantees issued for a period of one year or less is
extended and the extended period plus original period including claim
period is more than one year, additional commission on the period in
excess of one year only need be collected.

Amendment to Guarantee:

i. If the guarantee amount is reduced at the time of extension, commission

on the reduced amount only should be collected for the extended period.
ii. If there are amendments to the guarantee without change in the amount
and period, charges at the rate of Rs.300+GST per amendment is to be
collected.
iii. All Out-of pocket expenses like postage, telegram charges, confirmation
charges, etc., should be recovered separately.

Deferred Payment Guarantee / Co-Acceptance of Bills:

For DPGs, commission shall be charged on the reducing liability and for Co-
acceptance/acceptance of Bills, Commission shall be charged on the
individual bill amount.

Remittance charges, including postal tariff need not be collected for

remitting instalments under DPGs / Co-acceptance / Acceptance of Bills.

In the case of DPGs closed before due date, no commission is to be

refunded. However, this is not applicable in the case of DPGs issued by
mistake and cancelled.

Collection of Charges in Instalments:

i) Collection of commission on Guarantees / DPGs / Co-Acceptance of

Bills may be permitted in instalments in exceptional cases, if it is
specifically permitted by the Regional Head (for all sanctions from
branch level upto RO level) and for HO sanctions by the concerned
sanctioning authority. Where collection of commission is permitted to

21
 be collected on deferred basis, say annual instalment basis,
commission on such guarantees / DPGs / Co-acceptance of bills should
be collected at the rate prevailing on the respective due date of the
instalment/actual collection of commission. In other words, if there is
any upward revision of the rates of guarantee commission, the same
should be given effect to prospectively while collecting the commission
on due date under annual collection basis, in respect of unexpired
portion.

ii) It shall be the responsibility of the RO to obtain within 7 days from the
due date an annual confirmation in respect of each case (where
collection of commission is permitted in instalments) from the
concerned branch for having collected the instalment of commission
upfront for the ensuing period. Where such permission pertains to HO
sanction, RO shall forward a copy of Branch confirmation to Credit
Department (Operations), HO within 7 days from the due date.

Other Provisions:

i) Commission is to be collected for the entire period if the guarantee

outstands beyond the validity period for which guarantee is issued, due
to any preventive action initiated by the borrower from making
payment to the beneficiary such as stay orders from the court,
arbitration proceedings, etc.
ii) If a fresh guarantee is issued in lieu of an old guarantee (after the
expiry period), same should be treated as a fresh guarantee and
charges are to be levied accordingly at the rates on the date of issue
of such fresh guarantee.
iii) For guarantees issued on behalf of employees, if any, charges as
applicable to customers are to be levied.

Refund of Guarantee Commission:

i. Commission can be refunded for the unexpired period of guarantee

only if the guarantee has not been utilized for the purpose for which it
has been issued.
If the purpose for which guarantee is issued is fulfilled, no refund of
commission should be made in respect of unexpired period.

ii. Commission need not be refunded for the unexpired period in the case
of guarantees issued in lieu of Earnest Money Deposit and the
guarantee has been submitted along with the tender application. If for
any reason, guarantee could not be submitted in such cases, the
guarantee commission can be refunded for the unexpired period.
iii. When a guarantee is issued for the performance of a contract, and the
contract is completed before the expiry of the guarantee period,
commission for the unexpired period should not be refunded.
iv. In case of guarantees issued for 1 year or less, no refund of
commission is possible.

22
 v. In the case of export performance guarantees issued favouring
customs authorities under Import Trade Control regulations, the
guarantee commission at 50% for the unexpired period may be
refunded.
Delivery Order/ Guarantee/ Indemnity:

Whenever branches issue delivery order/ guarantee/ indemnity favouring

Railways/transport companies/other carriers to enable the consignee to
take delivery of the goods received under our L.C commission at the flat
rate of Rs.510+GST per guarantee/ delivery order should be collected
besides other incidental expenses like postage.

(3) Charges on all types of Inland Letters Of Credit

(A) At the time of issuance (in addition to Out of pocket expenses)

INDIVIDUALS IN INDIVIDUALS IN
OTHER THAN
OTHERTHAN RURAL AREAS
SERVICES INDIVIDUALS
RURAL AREAS
Bills with usance 0.23%+GST with a 0.21%+GST with a 0.19%+GST with a
up to 7 days sight minimum of minimum of minimum of
Rs.280+GST Rs.255+GST Rs.225+GST
Commitment Commitment Commitment
charge for the charge for the charge for the
period of liability at period of liability at period of liability at
the rate of the rate of the rate of
0.23%+GST for 0.21%+GST for 0.19%+GST for
every period of every period of every period of
three months or three months or three months or
part thereof. part thereof. part thereof.
Bills with usance 0.45%+GST with a 0.41%+GST with a 0.36%+GST with a
over 7 days and minimum of minimum of minimum of
up to 3 months Rs.280+GST + Rs.255+GST Rs.225 + GST
sight Commitment Commitment Commitment
charge for the charge for the charge for the
period of liability at period of liability at period of liability at
the rate of the rate of the rate of
0.23%+GST for 0.21%+GST for 0.19%+GST for
every period of every period of every period of
three months or three months or three months or
part thereof. part thereof. part thereof.
0.45%+GST for the 0.41%+GST for the 0.36%+GST for the
first 3 months + first 3 months + first 3 months +
0.23%+GST p.m. 0.21%+GST p.m. 0.19%+GST p.m.
for the remaining for the remaining for the remaining
period with a period with a period with a
Bills with usance minimum of minimum of minimum of Rs.225
over 3 months Rs.280+GST Rs.255+GST + GST
sight Commitment Commitment Commitment
charge for the charge for the charge for the
period of liability at period of liability at period of liability at
the rate of the rate of 0.21% the rate of
0.23%+GST for for every period of 0.19%+GST for
every period of every period of

23
 three months or three months or three months or
part thereof. part thereof. part thereof.
(B) On amendments (in addition to Out of pocket expenses)
SERVICES INDIVIDUALS IN INDIVIDUALS IN
OTHER THAN
OTHERTHAN RURAL RURAL AREAS
INDIVIDUALS
AREAS
Amendment other A flat Rs.335+GST Rs.305+GST
than by way of commission of
extension of the Rs.370+GST
validity period or per amendment
increase in the
value of LC
(C) While advising under Inland Letter of Credit (in addition to Out of
pocket expenses)
INDIVIDUALS INDIVIDUALS IN
OTHER THAN
IN OTHERTHAN RURAL AREAS
SERVICES INDIVIDUALS
RURAL AREAS
0.110%+GST of 0.100%+GST of 0.09%+GST of
each LC with a each LC with a each LC with a
minimum of minimum of minimum of
i) Advising of
Rs.1105+GST if Rs.1000+GST Rs.900+GST
Letter of credits
such credit does not
carry the
confirmation.
ii) Advising of Rs.255+GST Rs.225+GST
amendments A flat commission of
(which shall Rs.280+GST on
include Letters of each amendment.
Authority, orders
to negotiate)
(D) On confirmation of Inland Letters of Credit (in addition to Out of
pocket expenses)
INDIVIDUALS INDIVIDUALS IN
OTHER THAN
IN OTHERTHAN RURAL AREAS
SERVICES INDIVIDUALS
RURAL AREAS
Bills with usance 0.23%+GST with a 0.20%+GST with 0.19%+GST with a
up to 7 days minimum of a minimum of Rs. minimum of Rs.
sight Rs.1105+GST 1000+GST 900+GST
Bills with usance
0.45%+GST with a 0.40%+GST with 0.36%+GST with a
over 7 days and
minimum of Rs. a minimum of Rs. minimum of Rs.
up to 3 months
1105+GST 1000+GST 900+GST
sight
0.40%+GST for
0.45%+GST for the 0.36%+GST for the
the first 3 months
Bills with usance first 3 months plus first 3 months plus
plus 0.21%+GST
over 3 months 0.23%+GST per 0.19%+GST per
per month in
sight month in excess of 3 month in excess of 3
excess of 3
months. months.
months.

24
 (E) Negotiating Charges under ILC (in addition to Out of pocket
expenses)
INDIVIDUALS INDIVIDUALS IN
OTHER THAN
IN OTHERTHAN RURAL AREAS
SERVICES INDIVIDUALS
RURAL AREAS
0.45%+GST with 0.40% with a 0.36%+GST with a
For bills up to
a minimum of minimum of minimum of
Rs.2.50 lakhs -
Rs. 1105+GST Rs. 1000+GST Rs. 900+GST
0.275%+GST with 0.25%+GST with 0.23%+GST with a
For bills over
a minimum of a minimum of minimum of
Rs.2.50 lakhs -
Rs.2750+GST Rs.2500+GST Rs.2250+GST
(F) Reinstatement charges in case of Revolving Inland Letter of Credit
INDIVIDUALS INDIVIDUALS IN
OTHER THAN
IN OTHERTHAN RURAL AREAS
SERVICES INDIVIDUALS
RURAL AREAS
On each On each On each
reinstatement, reinstatement, reinstatement,
usance charges usance charges usance charges
according to tenor according to tenor according to tenor as
as stated above + as stated above + stated above +
On each
Commitment Commitment Commitment charges
reinstatement
charges of charges of of 0.19%+GST on
0.23%+GST on 0.21%+GST on reinstated amount
reinstated amount reinstated amount with a minimum of
with a minimum of with a minimum of Rs.455+GST
Rs.550+GST Rs.505+GST
(G) Clean Payments Received Under Letters Of Credit:
In all cases Rs.550+GST Rs. Rs. 505+GST Rs.455+GST
(H) Overdue interest on, if the bill is not paid on due date
In all cases, from At the applicable At the applicable At the applicable rate
the opener of LC rate rate

NOTE / EXPLANATIONS:
1. The commitment charge covers each period of 3 months and an extension may
be allowed free of commitment charge, if such extension does not run into a
fresh period of 3 months, otherwise a fresh charge for a further period of 3
months with a minimum of Rs.255+GST is to be collected.
2. When the amount of credit is subsequently increased, both the usance and
commitment charge shall be made on the amount so increased. The minimum
charge shall be Rs.255+GST
3. If on the date of extension of validity of ILC with usance terms (other than
RILC) if our commitment is reduced on the date of extension on account of
either bills realisation or negotiation of bills under ILC, then commitment
charges for such extension may be charged only on the unavailed portion of
ILC.
4. If bills are not taken up in accordance with the original terms of LC, the
appropriate additional usance charge shall be levied in accordance with para 4
(a) above.

25
5. Commission must be charged when an ILC is opened or amended and no refund
be allowed in any circumstances whatsoever, whether credit is cancelled, or
only partly availed of or expires wholly unavailed of.
6. All charges in respect of advance bills and/or bills under Letters of Credit are
for the account of the applicant.
7. The charges made under these rules shall be levied irrespective of whether the
margin is obtained or not, and shall not be refunded in any event except a
genuine mistake in collecting them on the part of the Bank.
8. In the case of ILCs secured by 100% cash margin or by our own term deposits,
a concessional charge at 25% of normal charges for opening ILCs may be
collected. This is applicable only for LC opening charges. All other charges
such as negotiation charges, etc., are to be collected at our usual rates.
9. Out-of-pocket expenses such as postage, telegram, telexes / fax shall be
collected in addition to the charges detailed above.

10.Other explanations / clarifications:

a) An irrevocable credit constitutes a definite undertaking of the issuing branch
to honour documents strictly drawn in terms and conditions of the credit
which cannot be amended or cancelled without the concurrence of the
issuing branch, the confirming bank (if any) and the beneficiary, whereas a
confirmed Letter of Credit is one which carries confirmation of an advising
bank and such confirmation constitutes definite undertaking of such bank
(confirming bank) in addition to that of issuing Bank.
b) When the Inland Letter of Credit opened by a bank is advised / confirmed
by its own branch, the advising / confirming branch of that bank will not be
entitled to the advising / confirming commission.
c) In case of extension of validity of ILCs other than Revolving ILCs, if our
commitment is reduced on the date of extension on account of negotiation
of documents and bill realisation under the particular LC, commitment
charges for such extension need be charged only on the un-availed portion
of the ILC.
d) Where ILC opening branch also happens to be the negotiating branch,
negotiating charges are to be collected separately, apart from LC opening
and other charges stipulated herein.
e) The Overdue interest should be collected on Demand Usance bill negotiated
under Letters of Credit opened by all banks for the reason that, in case of any
default, the Bank which has opened the Letters of Credit would be liable to
honour the commitment under Letters of Credit to the negotiating bank
(whether it may be its own branch or branch of another Bank) or to the party
presenting the bill.
f) Commission @ 0.23%+GST should be recovered upfront in addition to actual
out of pocket expenses on discounting of bills drawn under letters of credit.
(III) Charges on issue of Solvency Certificates:

INDIVIDUALS IN INDIVIDUALS
OTHER THAN
OTHERTHAN IN RURAL
SERVICES INDIVIDUALS
RURAL AREAS AREAS
Up to Rs 1 lakh Rs.500+GST Per Lakh
Rs.100+GST Per Lakh;
Above Rs 1 lakh
Min – Rs.500+ GST

26
 Max – Rs.15000+GST

NOTE / EXPLANATIONS: The charges are to be credited to Incidental

Charges Account.

****************

27