SUMMER TRAINING

PROJECT REPORT
ON
RETAIL BANKING
SUBMITTED TO:
MS. PUJA KHATRI

SUBMITTED BY:
SAHIL MALHOTRA (13)

SCHOOL OF MANAGEMENT STUDIES

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, KASHMERE
GATE, DELHI-110006

1
 ACKNOWLEDGEMENT

We wish to express our gratitude to all the people involved in the completion of this report. We
are thankful to all of them for their help and encouragement throughout the completion of the

report. They have been a constant source of support for me.

First of all I wish to express my deep sense of gratitude to Mr. J.S.KHARAY – A.G.M, Union
Bank Of India for providing his guidance and also for his full support in making the project
enriching and informative and providing requisite facility in due course of the project.

His constructive criticism of the approach to the problem and the result obtained during the
course of this work has helped me to a great extent in bringing work to its present shape.

2
 TABLE OF CONTENTS

CONTENTS PAGE Number

INTRODUCTION 4

RESEARCH METHODOLOGY 5

EXECUIVE SUMMARY 7

BOARD OF DIRECTOR’S 8

BANK’S CORPORATE MISSION 15

RETAIL LOAN’S 16

DEPOSITS 42

RATES AND CHARGES 54

NRI BANKING 59

TOOLS USED 85

FINDINGS 86

CONCLUSION 87

REFERENCES AND BIBLOGRAPHY 88

ANNEXURE 89

3
 INTRODUCTION

The Bank inaugurated by father of the Nation at the onset of 20th century, Union Bank of India
has traversed the long road of successful Banking of 85 years. We trace our origin to the
profound thoughts of Mahatma Gandhi. "We should have the ability to carry on a big bank, to
manage efficiently crores of rupees in the course of our national activities. Though we have not
many banks among us, it does not follow that we are not capable of efficiently managing crores
and tens of crores of rupees."

Union Bank of India is committed to maintain its identity as a leading innovative commercial
Bank, alive to the changing needs of the society. Union Bank has offered vast and varied
services to its entire valuable clientele taking care of their needs. Today, with its efficient
customer service, consistent profitability & growth, adoption of new technologies and value
added services, Union Bank truly lives up to the image of, "GOOD PEOPLE TO BANK WITH".
Anticipative banking is an integral ingredient of value-based services. This ability to gauge the
customer's needs long before he realizes, best reduces the gap between expectations and
deliverance.

Manpower is the key factor for the success of any organization. Union Bank has a dedicated
family of about 26,000 qualified / skilled employees who will and always will be delighted to
extend their services to the customers with heartfelt efforts.

The Bank is a Public Sector Unit with 60.85% Share Capital held by the Government of India.
The Bank came out with its Initial Public Offer (IPO) in August 20, 2002 and 39.15 % of Share
Capital is presently held by Institutions, Individuals and Others.

The Bank has over the years earned the reputation of being a techno-savvy Bank and is one of
the front runners amongst public sector bank in the field of technology. It is one of the pioneer
public sector banks, which launched Core Banking Solution in 2002. As of March 2005, more
than 600 branches/extension counters of Bank are networked under Core Banking Solution,
powered with the centralized technology platform, the Bank has launched multiple Electronic
Delivery Channels and has installed nearly 351 networked ATMs. Online Tele banking facility is
available to all its Core Banking customers. The multi facility versatile Internet Banking Solution
provides extensive information in addition to the on line transaction facility to both individuals
and corporates banking with the Core Banking branches of the Bank. In addition to regular
banking facilities, today customer can also avail variety of value added services like cash
management service, insurance, mutual funds, Demat from the Bank.

The Bank will continue its endeavor in providing excellent services to its customer and enhance
its businesses thereby fulfilling its vision of becoming "THE BANK OF FIRST CHOICE IN OUR
CHOSEN AREA BY BUILDING BENEFICIAL AND LASTING RELATIONSHIP WITH
CUSTOMERS THROUGH A PROCESS OF CONTINUOUS IMPROVEMENT".

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 RESEARCH METHDOLOGY

NEED OF THE STUDY

The need of this study is to find the impact made by the CRM activities on the customer sa
tisfactionand sale. On this study will let us know about the various aspects of the CRM acti
vities.What are thevarious factors affecting it positively and negatively? This study will enha
nce our knowledge and will helpus in times to come. We all find this area of study very luc
rative so we have chosen it as our topic of project.

Region of study:

♦DELHI

OBJECTIVES OF STUDY

o What are the different CRM techniques being adopted

o How much the CRM initiative of the bank helps them to retain their existi
ngcustomer and acquiring new customers.

o Does the CRM activities have any impact on customer locality

o To critically analyze the CRM initiative taken by bank to enhance custo

mersatisfaction.

PERIOD OF STUDY:

The period of the study for this project cover near about two months. Further, this much per
iod is areasonable period to study the performance of target person and to gain knowledge wit
h respect to theobjective of study.

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TYPES OF THE RESEARCH:

It is a Descriptive Research and the main objective of Descriptive Research is to learn about
who, what,when and how. It includes study and fact finding inquiries of different kinds. Th
us the major purpose ofdescriptive research is the description of the state of affairs, as it exit
s at present. To understand thevarious CRM activities and the impact of those activities
on customer loyalty and on the sale of thecompany we will design a questionaries that i
nclued all the above said objectives

It also include Exploratory Research as we are focusing on the what are the recent trends in t
he CRMactivities in the banks and what are their consequences.

Population: Population includes the people of Delhi

Proposed Sample Size: 15 customers

Research Tool: Questionnaire

FRAMEWORK OF ANALYSIS:

The study has been undertaken to examine and understand the marketing aspect of customer r
elationshipmanagement for a business playing a crucial role in the growth. The framework of
study is concern withthe CRM activities by automobile dealer in the region defined above

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 EXECUTIVE SUMMARY

The Indian retail finance market has witnessed a sea change during the last few years. Earlier,
Indians were averse to the concept of availing credit to fund their purchases and believed in the
concept of saving and then spending. However, today, there are a variety of consumer credit
products being literally forced upon consumers by overzealous lenders, who have realized the
huge latent potential of the burgeoning Indian consumers. This has gradually led to a shift in the
psychology of Indian consumers, who no longer consider credit as a social stigma and are more
than willing to fulfill their aspirations through the credit mechanism.

Until 10 years ago, mainly non-banking finance companies (NBFCs) and housing finance
companies (HFCs) catered to the nascent Indian retail finance market, while commercial banks
focused on corporate lending. Commercial banks, instead of lending to retail consumers
directly, would provide funds to NBFCs and HFCs, which, in turn, would lend to retail
consumers. The mid ‘90s saw several NBFCs mushrooming to exploit the huge potential of this
market. As competition intensified, many NBFCs, in order to capture a share of this retail market
pie, ignored the risks associated with the retail lending business and landed up burning their
fingers. Consequently, the late ‘90s and early 2000 witnessed a number of NBFCs either
shutting shop or curtailing their operations.

This report focuses on the retail asset finance market, which comprises mainly loans for
housing, cars and utility vehicles (auto finance), commercial vehicles and two-wheelers. The
retail asset finance market has grown between 1998-99 and 2003-04 at an annualized rate of
35 per cent (disbursements). The high growth rate between 1998-99 and 2003-04 can be
attributed to the fact that 5 years ago, the retail finance market was in its infancy, with few
people availing credit to fund their purchases. Going forward, CRIS INFAC expects the retail
finance market to grow at an annual rate of 18 per cent, from Rs 1,213 billion in 2003-04 to Rs
2,792 billion in 2008-09.

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 RETAIL BANKING

Retail banking is quite broad in nature - it refers to the dealing of commercial banks with
individual customers, both on liabilities and assets sides of the balance sheet. Fixed, current /
savings accounts on the liabilities side; and mortgages, loans (e.g., personal, housing, auto, and
educational) on the assets side, are the more important of the products offered by banks.
Related ancillary services include credit cards, or depository services. Today’s retail banking
sector is characterized by three basic characteristics:

1• Multiple products (deposits, credit cards, insurance, investments and securities);

2• Multiple channels of distribution (call centre, branch, Internet and kiosk); and

3• Multiple customer groups (consumer, small business, and corporate).

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 BOARD OF DIRECTORS

 SHRI M.V.NAIR
Chairman Managing Director

Mr. M.V.Nair took charge of Union Bank of India as Chairman and Managing Director on 1st
April 2006. The Bank is one of the largest Public Sector Banks in India with business mix of Rs
292000 crs+ i.e US $ 65.18+ billion and a branch network of 2800+ branches across India.
Mr. Nair’s career which began in Corporation Bank is an example of what innovation and
drive can achieve in Public Sector Banks. In Corporation Bank he successfully introduced Cash
Management Services, which quickly created a market advantage for Corporation Bank.
He served in Dena Bank as Executive Director and took over as Chairman and Managing
Director. He is credited with effecting a turn around in the financial fortunes of that Bank.
In Union Bank, his tenure since April 2006 has been characterized by a series of innovations
resulting in putting the Bank on a trajectory of quality growth.
In March 2008, Union Bank became the first large Public Sector Bank to network all its
branches under the Core Banking Solution(CBS). Mr Nair successfully introduced a change
process called “Project Nav Nirman” by leveraging technology, changing processes and
empowering people, thereby transforming the Bank into a customer Centric marketing
organization. Business of the Bank has grown from Rs 128700 crs i.e US $ 29.61 billion in
Mar’06 to Rs 292000 crs US $ 65.18 billion as of Mar’10 – a growth of 126% .
He is a member on the Management Committee of the Indian Banks’ Association (IBA). He
also serves as a Director on the Board of Agricultural Finance Corporation Ltd. He is also a
Director on the Board of the GIC Re. He is also the Chairman of the Governing Board of
Institute of Banking Personnel Selection(IBPS) and serves on its Finance Committee. He is a
member of the College Advisory Committee of Reserve Bank of India, College of Agricultural
Banking, Pune. He is the Vice-President of the Indian Institute of Banking & Finance(IIBF) and
also serves as Chairman of the Executive Committee of the Institute. He is a member of the
Governing Board of National Institute of Bank Management (NIBM), Pune and serves as a
member on its Finance Committee. He is also the member on the Board of Governing Council
of IDRBT and also on the Human Resources Committee of Governing Council of IDRBT. He is
a member on the Board of Trustees of CGTMSE.

Under his stewardship Union Bank has brought all its branches as also branches of its
sponsored RRBs under the CBS network, the first large Public Sector Bank to do so. The Bank
has opened representative offices in Shanghai and Beijing, PRC, Abu Dhabi, UAE, London, UK
and Sydney, Australia and also its first full fledged overseas branch in Hong Kong.

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  SHRI S. C.Kalia
Executive Director

Sh. Kalia assumed charge as Executive Director of Union Bank of India w.e.f. November 21,
2009. He was earlier the Executive Director of Vijaya Bank with effect from October 8, 2008.
Prior to taking charge at Vijaya Bank, Shri Kalia was General Manager in charge of the
Wholesale Banking portfolio at the Bank of Baroda’s Corporate Centre, Mumbai. A post-
graduate gold medalist in Political Science, Shri Kalia has been a professional banker for over
thirty five years in various capacities across the country and abroad. While serving Bank of
Baroda, he headed its Agra and Bareilly Regions successfully. Widely traveled within and
outside the country, Shri Kalia is known for his expertise, especially in credit related matters and
international banking. On his promotion as Senior Manager in the year 1990, he was posted to
the Bank’s Group Control Office in London. He was also in-charge of credit and
International Banking Business of the Bank’s Zonal Office Western Zone in UP. Shri Kalia
was the architect of the Bank of Baroda’s Joint Ventures Baroda Pioneer Asset
Management Company Ltd. and Baroda L & G Life Insurance Company. He was the Chief
Executive of the Bank’s operations in Mauritius and the Board Member of the Supervisory
Board of India Advantage Fund sponsored by ICICI Venture Fund. He was also in the Board of
Bank of Baroda (Botswana) Ltd.Director on the Board of Directors and Audit Committee of the
Board of Erstwhile Bareilly Corporation Bank Ltd., Nainital Bank Limited and Bank of Baroda
(Hong Kong) Ltd. Shri Kalia was also the Chairman of Pratapgarh Kshetriya Gramin Bank. Shri
Kalia is the recipient of several awards including Banker Shiromani Award and Utarkash Award.
Shri Kalia is presently a Director on the Board of Union KBC Asset management Company Ltd.
a Joint Venture Company of Union Bank of India and KBC , Belgium. select * from tab;

 Shri S.Raman
Executive Director

Mr. S. Raman joined the Union Bank of India as Executive Director on 15th October, 2008.Prior
to joining the Union Bank of India, Mr. Raman was with the Bank of India for over 34 years and
has had exposure to different segments including Corporate Banking, International Business
and Human Resources Management. Mr. Raman served in different parts of the country
including Mumbai, New Delhi, Ahmedabad, Pune, Hyderabad, Bhubaneshwar and Nagpur in
different capacities including as Zonal Manager in Orissa and Gujarat. Mr. Raman also had two
stints Overseas - at Jersey (UK) from 1983 to 1987 and as Chief Executive of Bank of
India’s US Operations from June 2005 to October 2008, during which period the Center
showed spectacular progress.Mr. Raman has had a distinguished academic background. He is
a Commerce Graduate(B.Com.) from Osmania University (with a Second Rank) followed by an
M.A. in Economics from Nagpur University (with First Rank and a Gold Medal). He also holds a
Diploma in Business Management and a Senior Diploma in German Language besides CAIIB
from the Indian Institute of Bankers and ACIB from the Chartered Institute of Bankers, London.
Mr. Raman currently oversees the portfolios of Corporate Credit,Treasury,International
Business,Impaired Assets and Transaction Banking etc.Mr. Raman is also currently on the
Board of Star Union Dai-Ichi Life Insurance Co. Ltd. and National Payments Corporation of
India.

 Shri K. V. Eapen

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 Government of India Nominee

Shri Eapen represents Government of India on the Board of Directors of the Bank with effect
from 10th June, 2008. He is an IAS Officer of the Assam- Meghalaya cadre of 1984 batch and is
presently Joint Secretary (Banking Administration), Department of Financial Services,
Government of India, New Delhi. An alumni of St. Stephen's College, University of Delhi, he has
a Bachelor of Arts degree and a Post Graduate degree in Economics. He also holds a Post
Graduate Diploma in Management from Management Development Institute Gurgaon and an
M.Sc. in Macro Economic Policy and Planning from the University of Bradford, United Kingdom.

He has worked in different districts of Assam and Meghalaya spanning more than a decade in
District Administration. In addition he has experience in areas such as Health and Family
Welfare, Tourism, Planning and Programme Implementation, Agriculture and Industries . He
was also Finance Secretary of Assam for two years. He has also served in various Central
Ministries such as Commerce and Industry, Tourism and the Department of Personnel and
Training.

Shri Eapen is looking after issues relating to Agriculture Credit, Financial inclusion,Rural
Banking besides HR and Establishment issues of Public Sector Banks in his current
assignment.

 SHRI N. SHANKAR
WORKMEN DIRECTOR

Government nominated Director under Clause (e) of Sub-Section (3) of Section 9 of the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970. A Bank employee since 1979
and is presently a Special Assistant in M.S.Marg Branch,Mumbai. Currently, he is the General
Secretary, Union Bank Staff Union, Mumbai and Organizing Secretary of AIUBEA the majority
recognized Union in the Bank. He is also the Working Committee Member of Maharashtra State
Bank Employees Federation covering more than 50,000 employees and is also the National
General Council member. He is also a member of many Committees at various levels that take
up updating AIBEA movement. He is a Graduate in the faculty of Science and a member of the
Institute of Cost and Works Accountants of India.

An employee representative on the PF Trustee in the Union Bank of India employees PF Trust
for the last eight years, he has been instrumental in bringing about various improvements and
streamlining the functioning of the department through Union Parivar resulting in speedy
disbursement of PF Loans and Retirement dues.

He is also involved in the Cooperative Society movement in Navi Mumbai and is the key
member of the action committee formed by Navi Mumbai Municipal Corporation and Citizens to
implement Municipal tax etc.

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  SHRI ASHOK SINGH
Government Nominee Director under General Category

Nominated by Government of India as a part-time non-official Director effective 19th February,

2008 under sub-section 3(h) and (3-A) of section 9 of the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1970. He is a graduate in the faculty of Science and a post
graduate in Law from Lucknow University.

He is a social worker and a trade union leader actively associated with Congress party from his
youth. Presently he is a member of AICC Mughalsarai ( Chandoli) and Vice Chairman, Labour
Cell, AICC .He currently holds important positions in several trade / labour unions and
federations at the national level such as Chairman, Labour Cell, PCC, Uttar Pradesh Congress
Committee, President, U.P. State Branch of INTUC, Indian National Sugar Mill Workers'
Federation, President, Indian National Defence Workers' Federation, Vice President, Indian
National Electricity Workers' Federation and INTUC. He is the Vice Chairman of National
Committee on Child Labour. He is also a member on the Board of Trustee of the Employees
Provident Fund managed by the Ministry of Labour, Government of India, member on the Board
of Governors of the Indian Institute of Management, Lucknow, member, National Committee on
sugar,under the Ministry of Labour, Member Court of the University, Allahabad and Governing
Body , National Council of Rural Institutes, Hyderabad, Govt. of India. Shri Singh was appointed
to act as a delegate representing several trade unions to attend a number of the international
labour conference. Shri Singh is a Chairman of standing Committee for effective co-ordination
between Industry & Technical Education Institutions constituted by Government of India,
Ministry of Human Resource Development and Committee for monitoring the extension of social
security to the construction workers under Ministry of Labour.

He was AICC Observer for Nagaland State in the President Election held in the year 2007and
also the Chairman of the National Youth Council, Indian National Trade Union Congress
(INTUC) 1994-95.

 Dr. Gulfam Mujibi

Part-time non-official Director

Nominated by Government of India as a part-time non-official Director effective 29th January,

2009, under sub-section 3(h) and (3-A) of section 9 of the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1970/1980. Dr. Gulfam Mujibi is a Post Graduate (MA) with a
gold medal from Ranchi University. He also holds a Ph.D and LLB degree from Ranchi
University. Dr. Mujibi has been involved in social service right from his college days. He started
his career as a General Secretary of District Youth Congress. At present is Chairman Jharkhand
Minority Commission, Vice President of Jharkhand State Congress Committee, Member of All
India Congress Committee, Ex-Member of State Election Committee (Jharkhand), Coordinator
of National Commission for Minority Educational Institution, Member of Senate, Ranchi
University and Chairman of Milli Talimi Mission (Bihar and Jharkhand). In addition, he is
associated with many social and educational institutions such as Director of Millat Primary
Teachers Training College, President of Mahendra Mahila College, Patron of Al Habib Women's
and Law College of Bokaro, Secretary of Maulana Azad College, Ranchi.

 PROF. M.S. SRIRAM

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 Shareholder Director

Represents shareholder interests on the Board having been elected to the Board at the EGM
held on 14th June 2006 and re-elected for a further period of 3 years in EGM held on
22/06/2009 . He holds a Post Graduate Diploma in Rural Management from Institute of Rural
Management, Anand (IRMA) (1984) and is a Fellow of the Indian Institute of Management,
Bangalore (1992). He has more than two decades of experience in academia and consulting.
His fields of expertise are Financial Accounting, Agricultural Finance, Social Entrepreneurship
and Microfinance. His publications include two books and several papers.

 Shri Arun Kumar Nanda

Shareholder Director

Shri Arun Nanda is a qualified Chartered Accountant, Company Secretary and also a law
graduate having more than 35 years experience.Shri Nanda is an Executive Director and
President, Infrastructure Development in Mahindra and Mahindra Limited and also on the
Board of other Mahindra group companies.
He has vast experience in compliances, Corporate Governance, investments, strategic
planning, identifying new business opportunities and corporate communications.He is the
Chairman Emeritus of the Indo-French Chamber of Commerce, a member of the governing
Board of the Council of EU Chambers of Commerce in India, Deputy Chairman – Western
Region of CII, Chairman of CII National Committee on Water and a member of the Governing
Board of Bombay First.
He has been recently conferred the award of Chavalier de la Legion d’Honneur(Knight of
the National Order of the Legion of Honour) by French President and he has also been
warded the Real Estate Person of the Year from GIREM Leadership Awards.He has also
been awarded with the CA Business Achiever Award - Corporate at The Institute of Chartered
Accountants of India Award 2009 and Lifetime Achievement Award for his outstanding
contribution to the Hospitality Industry and the Service Sector by the Golden Star Awards
2010.

 Shri S. Ravi
Shareholder Director

Shri Ravi is practicing Chartered Accountant apart from being a Science graduate and Masters
in Commerce.
He had been on the Board of other Public Sector Banks both in the capacity of a Shareholder
Director and as appointed by the Central Government under the Chartered Accountant
Category.
He is also on the Board in number of other companies, major amongst them are Mahindra
Ugine Steel Limited, Bharat Heavy Electricals Limited, IDBI Capital Markets Limited, IDBI Home
Finance Limited, UTI Trustee Company P Ltd. LIC Housing Finance Corporation Ltd., Maharishi
Housing Development Corporation Ltd. ,S.Ravi Financial Management Services Pvt. Ltd.,M/s
Ravi Rajan & Com Pvt. Ltd.
He was awarded the Indira Gandhi Solidarity Award for scoring a string of inspiring
achievements in chosen Field.
 Shri B.M.Sharma

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 Chartered Accountant Director

Shri B.M.Sharma has been appointed on the Board of the Bank vide notification dated 16th
April,2010 under the clause 9 (3)(g),Chartered Accountant Category of Banking Companies
( (Acquisition and Transfer of Undertakings) Act 1970/1980.
Shri B.M.Sharma is qualified Chartered Accountant practicing for more than 26 years. In
addition he is also a qualified Information System Auditor. During his span of experience of over
2 decades he has handled Concurrent Audit and various other assignments of banks and has
gained expertise in the field of Finance,Banking & Taxation.
Prior to his nomination to Union Bank Shri Sharma had been on the Board of Vijya Bank
appointed by Central Government under Chartered Accountant Category.
Shri Sharma was also a special invitee to Professional Development Committee of the Institute
of Chartered Accountants of India during the year 2009. During his association with Professional
Development Committee he has worked very closely in the fields of Public Sector
Undertakings , Private Equity Financing and Regional Rural Banks.

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 Bank’s Corporate Mission
 A logical extension of the Vision Statement is the Mission of the Bank, which is to gain
market recognition in the chosen areas.
 To build sizeable markets share in each of the chosen areas of business through
effective strategies in terms of pricing, product packaging and promoting the product in
the market.
 To facilitate a process of restructuring of branches to support a greater efficiency in the
retail banking field.
 To sustain the mission objective through harnessing technology driven banking and
delivery channels.
  To promote confidence and commitment among the staff members, to address the
expectations of the customers efficiently and handle technology banking with ease.

15
 RETAIL LAONS

 Union Trade
 Union Rent
 Union Cash
 Union Health
 Union Home
 Union Miles
 UnionEducation
 Union Smile
 Agriclinic/Agribusiness
Loans
 Land Purchase
 Union Mortgage
 Union Shares
 Union Comfort
 Union Top Up
 Specail Education
 Loan Schemes For
Premier Institutes
 Scheme for Commercial
Pilot Training Programme /
Course
 Special Offer For Existing
Home Loan Customers

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 UNION TRADE

ELIGIBILITY

Borrower should be in possession of registration / licences as applicable under local law e.g.

1. Shop Establishments Act.

2. Sales Tax Registration.
3. Drug Licences for Retail Trade.
4. Ration & Civil supplies.
5. Licence to deal in petroleum products/LPG
PURPOSE

I. The target group under Union Trade scheme include:

1. All Retail Traders

2. All Wholesale Traders

Including Supermarkets, Malls, Departmental Stores, dealers in groceries, consumer durables,

co-operative stores

II. Service traders like, restaurants, entertainment etc. maintaining required quantum of stock
and/or book debts.

QUANTUM

Working
Term Loan
Capital
Minimu Rs. 2.00 Rs. 2.00
m lacs lacs

Maximu Rs. 500 Rs. 100.00

m lacs lacs

MARGIN

FOR WORKING CAPITAL LIMIT:-

Upto Rs.10 lacs – NIL

- > Rs.10.00 lacs to upto Rs.500.00 lacs – 20% (For arriving of Drawing Power only)
- Limits above Rs.500.00 lacs 25%

17
FOR TERM LOAN:-

25% margin irrespective of amount of loan. (out of total cost of assets/equipment/construction,

25% has to be brought by the borrower)

- Rate of Interest * (w.e.f 01.07.2009)(BPLR = 11.75%)

PROCESSING CHARGES (EXCLUDING SERVICE TAX AS APPLICABLE)

CHARGES
NEW PROPOSALS
Upto Rs 25000/- Nil
Rs 25001 to Rs 2 lacs Rs. 254/- per Proposal
> Rs 2 lacs upto 10 lacs Rs. 201 - Per lac
> Rs 10 lacs and upto Rs 1 Rs. 154/- per one lac subject to miminum
crore of Rs. 2504/-
Rs. 100/-per lac subject to minimum of
> Rs 1 crore
Rs.15000/=
Renewal/Modifications -- For renewal/modification the
charges as stipulated for general advance applicable

SECURITY

- Primary : Charge over stock and Book Debts (not older than 90 days)
- Above Rs.500.00 lcas - not less than Rs.500.00 lacs subject to approval of the sanctioning
authority

Other condition

No Prepayment penalty if the loan is adjusted by the borrower from his own verifiable legitimate
sources or genuine sale. However, 2% charged on an average o/s. balance of last 12 months if
loan is closed on takeover by other Banks / Financial Institutions

18
 Union Rent

WHO CAN AVAIL

Owners of large commercial / office spaces rented out to large corporates, MNCs, banks, PSUs,
our Bank, etc. in Metro/urban/semi-urban/ rural areas.

ELIGIBILITY

Individuals /partnership firms/ corporates.

PURPOSE

To meet liquidity mismatches / any other productive purpose or to meet contingencies

TYPE OF FACILITIES

Term Loan
QUANTUM OF FINANCE

Based on future rent receivables subject to 75% of the gross rental income for the residual
lease period less (advance rent received+ property tax + income tax + other statutory dues of
the lessor) or 75% of the market value of the property whichever is less.
MARGIN

25%
RATE OF INTEREST(w.e.f 01/07/2009)

Upto 3 Yrs : BPLR+1.75 i.e. 13.5%

Above 3 Years : BPLR+2.25 i.e. 14%

BPLR=11.75%
SECURITY

Primary:

Assignment of receivables and recording of power of attorney with lessee.

Collateral:

First charge on property rented out or any other property of a value not less than 133% of the
loan amount.

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PROCESSING FEES

1% of loan amount with a minimum of Rs 5000/-

REPAYMENT

In equated instalments at the same frequency at which rent is received in a maximum period of
7 years or the residual lease period whichever is less.
DOCUMENTATION

 Agreement of loan and power of attorney.

 Tripartite Agreement between the lessor, the lessee and the Bank.OrIrrevocable power
of attorney from the lessor in favour of the Bank for collection of rent.

OR

 An irrevocable power of attorney from the lessor to collect the rent which should be duly
registered with the lessee.
 Deed of Guarantee.

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 UNION CASH

ELIGIBILITY

Retired employees of Government / Semi Government undertakings, Banks and other reputed
private organisations etc. who draw fixed income / pension through our Bank.
PURPOSE

To meet financial requirements.

QUANTUM

Upto Rs.1,00,000/- or 12 times of monthly pension, whichever is less.

MARGIN

 25% in case of Deposit Receipts / NSC / Bonds issued by Government of India /

Financial Institutions
 50% in case of Shares & Debentures.

REPAYMENT

 12 x 36 EMIs in case of Demand Loan repayable in Installments

 Above 36 to 48 EMIs in the case of Term Loan
RATE OF INTEREST(w.e.f 1/07/2010)(Base Rate)

 A fixed interest rate of 13.75%.

PROCESSING CHARGES (EXCLUDING SERVICE TAX)

NO Processing charges.
SECURITY

Pledge of Deposit Receipts / Shares / Debentures of corporates of good standing, NSCs Bonds
issued by Government of India / Financial Institutions etc.
Where sufficient security is not available, personal guarantee of spouse or a person who is the
nominee under pension scheme is to be obtained.
In genuine cases, the Bank may consider this facility on a clean basis.
OTHER CONDITIONS

21
Declaration is required from the spouse who is eligible for family pension.

UNION HEALTH

ELIGIBILITY

Any qualified medical practitioner / Dentist in the age group of 25 to 60 years with minimum
three years experience and in the age group of 25 to 60 years.
Firms / Companies engaged in medical profession in which Doctors / Dentist are Partners or
Directors or the Proprietor.
PURPOSE

For purchase of brand new Electro medical & other sophisticated equipment including Operation
Theatre equipment, Air conditioners, Generators, Refrigerators, Personal Computer and
accessories with software for diagnosis and UPS systems.
For purchase of equipments, machiner and such other items to start clinics.
For acquiring premises in order to set up of clinic, and towards cost of furnishing and medical
supplies.
QUANTUM

An amount equivalent to 75% of the equipment cost and other Assets to be financed.
MARGIN

Minimum 25% of cost of equipments and other assets to be financed.

REPAYMENT

Maximum 7 years including initial moratorium period of 3/6 months - By Equated Monthly
Instalments.
RATE OF INTEREST(w.e.f 1/07/2010)

A Fixed Interest rate of 12.00% for all. Interest rate will not undergo any change till full
repayment of the loan .
PROCESSING CHARGES(EXCLUDING SERVICE TAX)

0.50% of loan amount.

SECURITY

Hypothecation of equipment / items purchased out of Bank finance.

Collateral security 50% of loan amount.

EM of premises in case the loan is for acquiring premises.

22
OTHER CONDITIONS

Third Party gurantee is not mandatory.

No Prepayment penality if the loan is adjusted by the borrower from his own verifiable legitimate
sources or genuine sale. However, 2% charged on an average o/s. balance of last 12 months if
loan is closed on take over by other Banks / Financial Institutions.

* Rate of Interest prevailing on the date of sanction shall be applicable.

UNION HOME

ELIGIBILITY

 Indian Citizen - 21 years of age.

 Either single account or joint account with other family members (father, mother, wife,
spouse or son) with regular source of income.
 Individuals who may be employed/self-employed in business having regular income.
 A minimum of 40% marks as per investment grade scoring chart(internal method of the
bank)
PURPOSE

 Purchase/Construction of independent house/flat.

 Repair/Improvement/Extension.
 Repayment of loan availed from another agency/Bank/NBFC.
 For purchase/ construction of 2nd property (independent house/flat)
 Plot sold by a Government-recognized agency viz., HUDA, HOUSEFED and such others.
QUANTUM

 Max Rs. 300 Lacs for Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Ahmedabad,
Hyderabad,Gurgaon, Noida and New Delhi.
 For other cities Rs.100 lacs
 Max. Rs. 10 lacs for repair.
MARGIN

 For loan up to Rs. 200 lacs, 20% of the cost of the property.
 For loan above Rs. 200 lacs, 35% of the cost of the property.

23
REPAYMENT

 Moratorium up to 18 months wherever loan is taken for under construction flat or building.
 By Equated Monthly Installments(EMI).
 The maximum repayment period should not exceed 25 years (including moratorium)for
construction / purchase of house/ flat and 10 years for repair.
 Option of Flip/Step-up/Balloon methods of repayments for the convenience of the borrowers.
PROCESSING CHARGES

 0.50% of loan amount plus service Tax as applicable subject to a maximum of Rs.15000/-
 0.25% of the loan amount at the time of application plus service tax as applicable
 0.25% of loan amount on acceptance of sanction plus service as applicable
PREPAYMENT PENALTY

 No prepayment penalty if the loan is adjusted by the borrower from his own verifiable
legitimate sources of income or genuine sale.However, 2% charged on the average outstanding
balance of last 12 months, if loan is closed on takeover by other banks/financial institutions.
VALUE ADDED SERVICES

 Credit Card will be issued free of annual fees.

 No hidden or built-in costs
 Quick processing and disposal of loan applications
 Flexible repayment options
OTHER ATTRACTIVE FEATURES

 No prepayment penalty
 Flexible Repayment schedule
 Easy and convenient EMIs
 Sanction within 72 hours on receipt of application in full as per requirement.
 Pay interest on daily reduced balances.
Rate of Interest (w.e.f 1 .07. 2010) For Home Loans Upto Rs. 5.00 lacs

Period Fixed Floating

Upto 5 Yrs 9.75% Base Rate +1.00%=9.00%

> 5 Yrs-10 Yrs N.A Base Rate +1.25%= 9.25%

> 10 Yrs to 15 Yrs N.A Base Rate +1.50 %=9.50%

> 15 Yrs to 25 Yrs N.A Base Rate +1.50%=9.50%

Rate of Interest(w.e.f 1/07/2010) For Home Loans Above 5 Lacs and Upto Rs. 30.00 Lakhs

24
Period 1st,2nd, 3 yr 4th Yr Onwards
Fixed Floating

Upto 5 Yrs 9.75 % Base Rate + 1.00% i.e 9.00%

5-10 Yrs N.A Base Rate +1.25% i.e 9.25%

> 10-15 Yrs N.A Base Rate + 1.50% i.e 9.50%

> 15 yrs to 20 Yrs N.A Base Rate +1.50% i.e 9.50%

Rate of Interest(w.e.f 1/07/2010) For Home Loans Above Rs. 30 lacs and upto Rs. 50.00
Lacs

Period Fixed Floating

Upto 5 yrs 10.75% Base Rate +1.50%=9.50%

>5 yrs to 10yrs N.A Base Rate +1.75%=9.75%

>10 yrs to 15yrs N.A Base Rate +2.00% =10.00%

>15 yrs to 25yrs N.A ase Rate + 2.00%=10.00%

Rate of Interest(w.e.f 1/07/2010) For Home Loans Above Rs. 50.00 Lacs and upto Rs. 200
lacs

Period Fixed 4th Yr Onwards(floating)

Upto 5 yrs 11.00% Base Rate+1.75%=9.75%

>5 yrs upto 10yrs N.A Base Rate +2.00%= 10.00%

>10 yrs upto 15yrs N.A Base Rate +2.25%= 10.25%

>15 yrs upto 20yrs N.A Base Rate +2.25%=10.25%

Rate of Interest(w.e.f 15/02/2010) For Home Loans Above Rs. 200.00 Lacs

Period Fixed Floating

Upto 5 Years N.A. Base Rate+2.00% i.e. 10.00%

25
> 5 Years to 10 Years N.A. Base Rate+2.50% i.e 10.25%

>10 Years to 15 Years N.A. Base Rate +2.75% i.e 10.75%

>15 Years to 25 years N.A. Base Rate +2.75% i.e. 10.75%

Union Miles

ELIGIBILITY

 Individuals of the age 18 years and above

 Permanent employee of Central/State/Defence/Police Force/Public or Joint Sector
Undertaking/reputed firms/ established Educational Inst.
 Professional/Businessmen having regular income.
 Borower has atleast minimum services to liquidate the loan 1 year prior to retirement.
 Firms/Companies.
 Min. 40% marks as per investment grade scoring chart.

PURPOSE

 For Purchase of new two/four wheelers, for personal or professional use

 Second hand vehicles upto 3 years old also eligible.

QUANTUM

 Four Wheeler- 4 times the netannual income as per ITR/Salary slip, subject to a amximum
loan of Rs. 40 lacs for new vehicle and Rs. 10 lacs for old vehicle
 Two Wheeler- 4 times the net income as per ITR/ salary slip subject to a maximum loan of
Rs 1 lacs
for new vehicle

MARGIN

 15% of on road price(Ex-showroom +Registration+ Insurance+ Road Tax).

 50% of cost ofold vehicle.

REPAYMENT

 Four Wheelers - A Maximum of 60 months in Equated Monthly Installments(EMIs).

 Two Wheelers - A Maximum of 36 months in Equated Monthly Installments(EMIs).

Under Tie-up

26
-------------

4 Wheelers - Max. 72 EMIs (Maruti Suzuki India Ltd.,Tata Motors Ltd,Hyundai Motors India Ltd.)

Rate of Interest (w.e.f. 1.07.2010)

 4 Wheeler - for Period Upto 3 Years Rate of Interest : 11.00% p.a

Above 3 Years Rate of Interest : 11.50% p.a
 2 Wheelers - Upto 3 Years Rate of Interest :12.75% p.a.
Above 3 Years Rate of Interest : 13.00%
 Old Cars (not older than 3 Yrs.) Rate of Interest :13.25% p.a

PROCESSING CHARGES (EXCLUDING SERVICE TAX)

 Two Wheelers : Rs. 250

 Four Wheelers : Rs. 500 Loan upto Rs. 2 Lacs.
 Four Wheelers : Rs.1000 per vehicle for Loan over Rs. 2 Lacs.

*Processing charges are waived from 01.09.2005 to 31.12.2005

SECURITY

 Hypothecation of vehicle financed by the Bank.

 Bank's lien to be got noted with the Transport Authorities.

GUARNTEE

 Gurantee of the spouse. In case unmarried, 3rd party gurantee sufficient means.

OTHER CONDITIONS

27
 No Pre-Payment penalty if the loan is adjusted by the borrower from his own verifiable
legitimate sources of income or genuine sale. However, 2% charged on an average o/s. balance
of last 12 months if loan is closed on take over by other Bank/Financial Institutes.

Comprehensive Insurance with Bank Clause.

Salary Certificate/proof of income and proof of residence to be obtained and held on record.

UNION EDUCATION

OBJECTIVES

The scheme aims at providing financial assistance on reasonable terms.

 To poor and needy students to undertake basic education
 To the meritorious students to pursue higher / professional / technical education

ELIGIBILITY

Student Eligibility
 Should be an Indian National.
 Secured admission to Professional/Technical courses through Entrance
Test/Selection Process.
 Secured Admission to foreign University.
 Passed the qualifying exam.

Studies in India :
 School education including +2 stage.
 Graduation/Post Graduation.
 Professional course.
 Management course.

Studies Abroad :
 Graduation : For job oriented Professional / technical courses offered by reputed
universities.
 Post Graduation : MCA, MBA, MS etc.
 Courses conducted by CIMA,London, CPA, USA etc.

PURPOSE

 To poor and needy students to undertake basic education.

 To the meritorious students to pursue higher / Professional / technical education.

QUANTUM

28
 Scheme for Commercial Pilot Training Programme /
Course
Eligibility

 Should be Indian National.

 Should have secured admission to the relevant course through admission test.
 Should have secured admission to the foreign institutions for studies abroad
Duration of the Course

12-24 months

Type Of Institution

1. For Course / Training programme in India: Government or recognized Private Institute

approved by Director general Of Civil aviation, Government Of India.

2. For course/training programme abroad:

The course/ training programme should have been offered by recognized institutions
abroad approved by competent authority in that country eg. in U.S.A the Federal
Aviation Administration, Govt. Of U.S.A.

The licenses issued by such institution should be convertible into corresponding Indian
Licences in case the applicant desires to take up employment in India after completion of
course/ training abroad, as per directives of Director General Of Civil aviation,
Government of India.

Quantum Of Loan

 Nil margin up to Rs.4 lacs.

 Min.5 % margin for loans above Rs. 4.lacs in India.
 Min.15% Margin for loans above Rs. 4 lacs for studies abroad.
 Scholarships/ assistance to be included in Margin.
 Margin to be brought in year to year whenever disbursement made on pro rata
basis.
Rate Of Interest

For loans up to Rs. 4 lacs 11.75%

29
For Loans above Rs.. 4 lacs and
12.50%
upto 7.50 lacs

For Loans above Rs. 7.50 lacs 12.00% 0.50% additional interset concession
or girls students

Security

 No security up to Rs. 4 lacs.

 Loan above Rs. 4 lacs and upto Rs. 7.50 lacs- personal guarantee to the
satisfaction of the bank.
 For loans above Rs. 7.50 lacs- suitable collateral security/third party guarantee
acceptable to the bank.
Life insurance policy for a sum not less than the loan to be taken on the life of the
student/ applicant and assigned in favor of the Bank.

30
 Special Offer For Existing Home Loan Customers
ELIGIBILITY

Existing home loan borrowers under Union Home loan who have :
 sanctioned loan limits of more than Rs. 10 lacs
AND
 a satisfactory repayment track record of 2 years or more
PURPOSE

 For purchase of new 4-wheeler only

RATE OF INTEREST:

Up to 3 years Above 3 years

9.50% (Fixed) 10.00%(Fixed)

QUANTUM OF LOAN

 The Eligible amount will be as per regular Union miles Scheme under respective delegation.
 (Slabwise Eligibility communicated vide IC 8572 dated 17.02.2010 is dispensed with.)
SECURITY

 Hypotheaction of vehicle financed by the Bank

 Bank's lein to be got noted with the transport authorities.
 (Extension of Mortgage of House as Collateral security is waived off vide IC 8673 dated
16.06.2010.)
OTHER TERMS AND CONDITIONS:

All other terms and conditions as per Union Miles.

* Offer Valid till 30.09.2009

31
 DEPOSITS

 Cumulative Deposit Scheme

 Deposit Reinvestment Certificate
 Monthly Income Scheme
 Union flexi-Deposit
 Capital Gains Exemption Deposit Scheme
 Senior Citizens Scheme
 Multi Gains Savings Account
 Union Monthly Plus
 No Frills Saving Account
 Union Tax Saver
 Union Super Salary Account
 Union Classic Current Account

32
 Cumulative Deposit Scheme

This scheme is a household savings plan. It encourages small investors to save by easy
monthly installments over a fixed period.

Monthly installments can be for any amount from Rs.50/- onwards.

Account can be opened for any period ranging from 6 months to 120 months, in intervals
of 3 months.

The installment amount selected will be payable every month.

Number of installments once selected, cannot be altered. However, in case the monthly
installment is to be discontinued for any reason, the account holder can convert the
amount of installments already paid, into Fixed or Reinvestment Deposit for a period
longer than the remaining period of the Cumulative account. For the period the
cumulative account has run, compound interest at the applicable rate is payable.

Interest at the permissible rate is compounded every quarter.

The maturity amount will be paid one month after the deposit of the last installment
(latest table giving maturity values available with the branch).

A pass Book will be provided to the depositor.

33
 Deposit Reinvestment Certificate

This is an ideal scheme for investing a lump sum amount where interest is compounded
quarterly and paid along with the principal amount invested.

Deposits can be made for any period from 6 months to 120 months. Deposits can be accepted
even for odd periods like 37 months, 65 months and 6 days, etc.

Minimum amount of deposit will be Rs.100/- in Rural/Semi-urban centres and Rs.500/- in

Urban/Metro centres and in multiples thereof.

Interest at applicable rate for the period for which the deposit is kept, is automatically reinvested
at quarterly intervals.

Interest being compounded, the amount invested multiplies and matures into attractive lump
sum. The amount invested doubles over a period of time. (Latest maturity value table available
with the branch).

Monthly Income Scheme

As the name of the scheme denotes, interest is payable at the contracted rate every month, on
the fixed deposit which is accepted for any period from one year to ten years.

Interest is paid monthly at the discounted value (latest table for Monthly Income Scheme is
available with the branch).

Interest is paid/credited to the Savings/current/Cumulative account of the depositor during the

last week of every month. First such interest will be paid in the month, following the month in
which the deposit is kept

34
 Union flexi-Deposit
Now, with UBI’s Flexi Deposit Scheme you can just sit back and relax, while you enjoy the high
returns of a Fixed Deposit in your regular Savings Account. In other words, reap the best of both
worlds! What’s more, you get the convenience of a free ATM Card.
PURPOSE

The new Deposit Scheme has integrated features of the Savings Deposit and Fixed Deposit, i.e
liquidity with higher interest returns on surplus funds.
HOW DOES THE SCHEME WORK

 The depositor opens a Savings Bank Account with a minimum amount of Rs 10,000/- and
will issue standing instructions to UBI to maintain a certain predetermined balance through out
the tenure of the account and to transfer the surplus funds over and above the said limit to a
Fixed Deposit Account in multiples of Rs 5,000/- with a minimum of Rs 5,000/- for a fixed
maturity period.

Whenever the outstanding balance in Savings Bank Account goes below the stipulated amount
the gap will be bridged by transfer of required funds from depositor’s Fixed Deposit Account in
multiples of Rs 1,000
WHO CAN OPEN AN ACCOUNT

All individuals, singly or jointly who are eligible to open Savings A/C. The scheme is also open
to Non-Resident Indians who are eligible to open account as per or existing rules.
PERIOD OF DEPOSIT

The Fixed period will vary between 46 days to 5 years.In case of NRI Deposit, minimum period
will be one year.
AMOUNT OF DEPOSIT

 A minimum Rs 10,000/- as a Savings Bank Account.

 A Minimum of Rs 5,000/ - as a Term Deposit(Fixed Deposit), increased in multiples of Rs
5,000/-.
RATE OF INTEREST

As applicable to Savings Bank Deposit and Fixed Deposit in force from time to time. Interest will
be paid on a quarterly on the Fixed Deposit account.
PASSBOOK

 A specially designed Passbook will be issued to the depositor wherein all the details of Fixed
Deposits, Savings Account and interest credited will be recorded.
 No separate Deposit Receipt shall be issued by the Bank.

35
OTHER FEATURES

 Free credit card to depositors who maintains a minimum balance of Rs. 1.00 lac.
 In selected cities an ATM* Card will be issued free of cost to all deposit holders under this
scheme if requested for at the time of opening of the account.
 Roll over of deposit on maturity is permitted.
 A penalty of Rs 25/- p.m will be levied whenever the balance in the Saving Account and / or
in Fixed Deposit A/C is reduced below the minimum level of predetermined sum.
 Nomination facility is available.
 No loan / overdraft / lien will be sanctioned / permitted against FDR held under this Scheme.

Capital Gains Exemption Deposit Scheme

The Scheme has come into force from 22nd June, 1988. The amount so deposited would be
required to be utilized by assesses, within the specified period, for acquisition of new asset
under the respective Section of the Income Tax Act, 1961.

Under this scheme, the tax payers can avail of the benefit of exemption from Capital Gains, if
the amount of Capital Gains or the net consideration is deposited in the bank on or before the
due date of filling the return of income by the tax payers
OPENING OF ACCOUNTS

 Accounts under the Scheme can be opened only at Semi-Urban / Urban / Metropolitan
Branches.
 Two types of deposit accounts can be opened under this Scheme.
DEPOSIT ACCOUNT ‘A’

 The deposits made under this account shall be in the form of Savings Bank Deposits.
DEPOSIT ACCOUNT ‘B’

 This account will be in the form of Term Deposit, with an option to the depositor to keep the
deposit either as cumulative i.e. similar to our DRC Deposit or as non-cumulative i.e. similar to
our Fixed Deposit.
 The deposits under this Scheme may be made in one lump sum or in instalments at any
time on or before furnishing the return of income.
WITHDRAWAL

 Withdrawals under Deposit Account ‘A’ can be made from time to time by the depositor,
subject to other provisions of the Scheme.
 Withdrawals under Deposit Account ‘B’ can be made after the expiry of the period for which
the deposit has been kept.

36
 Senior Citizens Scheme
ELIGIBILITY

Any person who has completed the age of 60 years is treated as a senior citizen for obtaining
the benefit of the additional interest.
DOCUMENTATION

At the time of opening of a new deposit account, the senior citizen may produce any of the
following documents as proof of age.

1) Senior School Leaving Certificate indicating date of birth.

2) LIC policy
3) Voters Identity Card
4) Pension Payment Order
5) Birth Certificate issued by the competent authority
6) Passport
7) Any other document acceptable to the bank
VERIFICATION

Once the age of a senior citizen is verified for accepting deposit under the special scheme for
senior citizens, no further proof of age is required while accepting subsequent deposits or for
renewal of deposit of the senior citizen.
JOINT ACCOUNT

Senior citizen may deposit jointly with other persons below the age of 60, under the special
scheme for senior citizen. In such cases the name of the senior citizen is to be given as the first
name in the application.

Multi Gains Savings Account

THE SCHEME IN BRIEF

 Multi Gains Savings Account (MGSA) Scheme requires maintaining a minimum balance of
Rs.25000/- in a savings account.
 You can upgrade your existing savings account into MGSA by filling in a simple declaration
form or open a new MGSA account.
 Interest will be paid quarterly in the account as against half-yearly in a normal savings
account.

FREE SERVICES*

 A Credit Card will be issued free for the first year with a limit of Rs.25000/- to the individual /
any one joint account holder.

37
 An ATM Card will be issued free to the sole / any one joint account holder wherever the ATM
facility is available.
 A maximum of two free remittances to anywhere in India aggregating to Rs.25000/- will be
allowed per month.

 Local / outstation cheques up to Rs.15000/- will be collected free of charge.

 The account holder will be provided with 10 cheque books free of cost during a financial
year, subject to satisfactory utilization of the cheque leaves.
 Interest will be paid for any delay in collection of instruments of MGSA account holders.
 If you desire, your MGSA account can be transferred to any of our branches in India free of
cost.

Union Monthly Plus

Purpose

A Novel User-friendly Recurring Deposit Scheme, with flexibility of Step Up and Step Down
options, of monthly installment.
SALIENT FEATURES :

 The Scheme is available to Individuals / Institutions / Corporates / Proprietorship /

Partnership / Trust / HUF etc.
 The customer will have to select the "Core Amount", at the time of opening the account and
deposit the same,
initially.
 Minimum Core Amount is Rs.100/- & Maximum Rs.1,00,000/-.
 The period of deposit will be from 6 month to 60 months, in multiple of one month.
 Rate of nterest on this scheme will be as per the Term Deposit rate applicable for the period.

 Interest will be calculated on monthly product basis, for the minimum balance between
the10th & last day of
the month and will be credited quarterly.
 The Scheme offers flexibility of depositing monthly instalment amount, by way of Step Up &
Step Down options

Step Up Options :

 Depositor can increase (Step up) the monthly installment amount upto 10 times the Core
Amount during any month. The installment can also be deposited one or more times, during a
month subject to maximum ceiling of 10 times Core Amount.
Example: Core Amount Rs.1000/-
Customer can deposit maximum upto Rs.10000/- per month.

Step Down Options :

 After stepping up the instalment amount, a customer can also reduce the same (Step

38
Down), in any subsequent month/s, but the same should not be less than the Core amount.
 For accounts opened on or after 01.05.2009, maximum amount that can be remitted during
a month including step up is limited to Rs100000(Rupees One Lakh Only)

 Premature closure is allowed.

 No penalty will be charged in case of premature closure.
 Similarly, no penalty will be levied on delayed instalment.
 Nomination facility is available, like other Deposit Scheme.
 Loan facility is permitted upto 75 % of the deposit amount, at the time of availing loan, at 2 %
ODR.

UNION BANK OF INDIA RESERVES THE RIGHT TO CHANGE / ALTER / WITHDRAW

TERMS AND CONDITIONS OF THE SCHEME.

No Frills Saving Account

Open a “No Frills saving account” with UNION BANK OF INDIA and avail world class banking
facilities maintaining nominal minimum balance.
Salient Features of “NO FRILLS SAVING ACCOUNT”

 All resident individuals eligible to open a "No frills saving account" subject to the conditions
that only one member of the family can open such account in single/joint name/s.
 Minimum balance required in the account is Rs.25/- in non-CBS branches and in CBS
branches average quarterly balance of Rs.25/-
 No penalty for non-maintenance of prescribed minimum/average quarterly balance.
 No cequebook facility will be available.
 One ATM / International debit card will be issued to the account holder.
 Withdrawal of cash will be available only through ATM wherever online ATM facility is
available. At other branches, withdrawals will be through withdrawal slip.
 Number of free customer induced debit entries will be restricted to 30 per half year including
debit entries through ECS/ATM. Entries above 30 will be charged @ Rs.5/- per entry.
 Total credits in the account should not exceed Rs.100000/- in a year.
 There is no restriction on entries for deposit of Cash/Cheques in the account.
 Nomination facility is available.
 The balance in all the accounts of the accountholders taken together in the bank should not
exceed Rs.50,000/-.
 Special facilities under "No Frills Account" for residents of North-eastern states i.e.
Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland & Tripura.
 Clean overdraft upto Rs.500/-once in a year (Conditions apply).

39
 Union Tax Saver
Eligibility

 All individuals and HUF having PAN are eligible to invest in this product. Firms, Companies,
Trust, Societies, Clubs, Institutions, Corporates etc., are not allowed to invest in this product.
Types of term deposit

 The deposit can be of Single holder type or Joint holder type.

 The single holder type of deposit shall be issued to an individual for himself or in the
capacity of the Karta of the Hindu undivided family. The joint holder type of deposit receipt may
be issued jointly to two adults or jointly to an adult and a minor and payable to either of the
holders or to the survivor.
 In case of joint holder type of deposit, the deduction from income under section 80C of the
Act shall be available only to the first holder of the deposit.
Investment

 The amount to be invested in the term deposit of the Bank shall be a minimum of Rs 5000/-
and in multiples of Rs 1000/- thereof and maximum limited to Rs 100000/- in a financial year.
The product will be available for investment, until further announcement or otherwise withdrawn,
as the case may be.
Period of Deposit

 Deposit will be accepted for a minimum period of 5 years and maximum period of 10 years.
Types of term deposit

 The deposit will be accepted in the form of DRIC or Fixed Deposit or Monthly Income
Scheme.
Issue of term deposit receipt

 The term deposit receipt shall bear the name, address, Permanent Account Number and
Signature of the depositor, along with other particulars.
Authorised Branches

 The deposit will be accepted by all branches across the country.

Transfer of deposit

 The deposit may be transferred from one branch to any other branch of Union Bank of India
on the depositor making an application, at either of the two branches. The said Term deposit will
not be transferred to any other Bank.
Pledging of term deposit

 The term deposit can be pledged to secure loan or as security to any other asset, only after
the lock in period of 5 years. This will be subject to the terms and conditions governing such
loans/advances.

40
Encashment on maturity

 The maturity period of term deposit receipt of any denomination shall be minimum five years
commencing from the date of the receipt and maximum being 10 years. No term deposit shall
be encashed before the expiry of five years from the date of its receipt.
Premature encashment

 Any encashment/withdrawal of the term deposit after completion of 5 years and before the
originally contracted maturity period will be treated as premature encashment. A penalty of 1%
reduction in the applicable interest rate/ contract rate, which ever is less, will be levied.
Rate of Interest

 Rates of interest as applicable to general Term Deposits will apply. Senior Citizens will be
eligible for additional interest as per the extant policy of the Bank
Payment of Interest

 The interest may be paid either in lump sum at the time of maturity or it may be paid every
quarter or every month in accordance with the regulatory guidelines for payment of interest on
the nature of term deposit chosen.
Nomination

 Nomination can be made for the deposit as per extant guidelines applicable. No nomination
shall be made in respect of a term deposit applied for and held by or on behalf of a minor.
Tax liability on interest on the deposit

 Interest on these deposits shall be liable to tax under the Income Tax Act. TDS will be
applicable as per extant guidelines.
Benefit Under Section 80 C

 Exemption under section 80 C of Income Tax Act can be claimed by the depositor in case of
single depositor or the first holder in case of joint depositors for a maximum amount of
Rs100000/-, with in eligible investments.

Union Super Salary Account

USSA is a unique product packaged to suit the salaried class
Sailent Features

 Employees of any Corporate, Institution, Business Organisation, Govt. Dept., etc. with
employee strength of minimum 15 and minimum net monthly salary disbursement not less than
Rs.1.50 lacs, can open USSA with us.
 Net salary of an individual can be below Rs10000/-, but the average monthly salary size of
the employees of the Organisation should be Rs10000/- or above.
 Minimum 15 employees should open account with us at entry level .
 Comprehensive Welcome Kit, containing International Debit Card, Internet Banking (Union

41
e-Banking) PIN, Phone Banking (Union Dial) PIN and Multicity Cheque Book, is provided to the
USSA holder at the time of opening. The Welcome Kit facilitates the USSA holder Any
Where/Any Time Banking of his choice, as under:-

ATM Banking
Net Banking
Phone Banking
Branch Banking

 USSA holder can use his Debit Card at over 1200 Union Bank ATMs at various locations in
India, free of cost.
 USSA holder can also access,free of cost , around 32000 ATMs of other Banks, for cash
withdrawals in India.
 USSA holder can also access over 1 million ATMs, globally, bearing VISA logo
 USSA holder can transact through internet (Union e-Banking) from his place of
residence/work or anywhere, any time.
 USSA holder can, by dialling the telephone numbers specified, enjoy the benefits of phone
banking (Union Dial).
 USSA holder can use his multicity cheques for cash withdrawals/ payments at any Union
Bank branch located in all prime centres in India.
 USSA holder can avail SMS Banking services for his account.
 USSA holder can avail RTGS/NEFT/Intersol transfers absolutely free.
 USSA holder can apply for an overdraft facility to the extent of 90% of the net salary credited
in the previous month, subject to a ceiling of Rs 50000/-, which will be considered at the
discretion of the Bank.
 USSA can be opened with Zero Balance.
 USSA Opens doors for a wide range of additional financial services, such as Retail Loans
(Home, Vehicle, Comfort), Insurance (life/non-life), Mutual Funds, Demat, Online Trading etc.,
subject to usual terms.
Union Bank of India reserves it’s right to change/alter/withdraw the terms and conditions of the
scheme.

Union Classic Current Account

UCCA is the Premium Current Account Product suited for Traders and Business Class.
Sailent Features

Based on the previous month's Average Monthly Balance(AMB) maintained,free facilities are
allowed in UCCA.There are four kinds of AMB, recognized,for this purpose as follows: -
 Rs. 50,000
 Rs. 1,00,000
 Rs. 5,00,000
 Rs. 25,00,000

Month for this purpose is rerckoned as the period from 16th of a calendar month to 15th of the
next calendar month.

42
UCCA extends the following benefits to the account holder:
Monthly Free Limits in Rs Lacs. *
AMB
Rs 50000 250
Rs 100000 500
Rs 500000 750
Rs 2500000 No Ceiling

* PO+DD+NEFT+RTGS+Intersol (other than cash deposit)+Standing Instructions+ Auto Sweep

and Collection of Outstation Cheques, clubbed together, for the facility.
 Free Cash Deposit / Withdrawal up to specified limit
 Cash Deposit facility in non-base branches subject to specified limit.
 Facilities including concessions through Any Account viz. SB/CD/CC/OD/PC and in Any UBI
Branch.
 Auto Roaming facilitating enhanced category status for customers, based on previous
month’s AMB.
 Upfront entitlement for facilities.

All the above facilities entail the following additional benefits to the UCCA holder:
 Free Facilities Shrink Transaction Cost
 Results in Efficient Fund Management.
 Increase in Net Profits
 Benefits that can be derived by the customer are huge when compared to the interest
sacrifice made by him for the AMB maintained in his UCCA.

* Union Bank of India reserves it’s right to change/alter/withdraw the terms and
conditions/scheme/product.

43
 RATES AND CHARGES

• Domestic Term Deposit.

• NRE Deposit.

• FCNR (B) Deposit.

• RFC Deposit.

• OBU Deposit.

44
 Domestic Term Deposit

Rate of Interest

Type of Account Rate of Interest(% p.a.)

Savings Account (w.e f. 01/03/2003) 3.5 %

Savings Account - NRE (w.e.f. 01/03/2003) 3.5 %

(% p.a.) (Effective from 05.04.2010)

Less than Rs. Rs. 15 Lacs & above but Rs. 1.00 Crore to Above Rs
PERIOD
15 Lacs less than Rs 100 lacs Rs .5 Crores 5 Cr

07 - 14 days 1.50 1.50 1.50 1.50

15 - 45 days 3.00 3.00 3.00 3.00

46 - 90 days 4.00 4.00 3.00 3.00

91 days < 6
4.50 4.50 3.50 3.50
Months

6 Months < 9
5.00 5.00 4.50 4.50
Months

9 Months < 1
5.25 5.25 5.50 5.50
Year

1 Year < 2 yrs 6.50 6.50 6.00 6.00

45
2 yr < 3 yrs 7.00 7.00 6.00 6.00

3 yrs < 5 yrs 7.25 7.25 6.00 6.00

5 yrs and
7.50 7.50 6.00 6.00
above

First Heading

 Please refer Instruction Circular No 8609 dated 03.04.2010 for further details.
The interest rate on domestic term deposits of Rs.10 crs. and above for 12 months
period is changed from 6.00% to 6.85% effective from 9th July 2010.

46
 NRE Deposit

NRE Deposit

NRE Term Deposit (Effective from 1st July,2010)

MATURITY PERIOD RATE OF INTEREST

1 Year < 2 Years 2.92%

2 Years < 3 Years 2.72%

3 Years and above 3.08%

Saving Deposits 3.5%

FCNR (B) Deposit

FCNR(B) Deposit

FCNR(B) Deposit (Effective from 1st July, 2010)

RFC Deposit

RFC Deposit

RFC Deposit (Effective from 1st July,2010)

OBU Deposit

OBU Deposit (Effective from 1st July, 2010)

47
 NRI BANKING

• INVESTMENT PRODUCTS

• FEATURES OF VARIOUS DEPOSIT SCHEMES AVAILABLE TO NON-RESIDENT

INDIANS (NRIS)

• DEPOSIT SCHEMES

• Remittances Products

• RETAIL PRODUCT

48
 INVESTMENT PRODUCTS

PORTFOLIO INVESTMENT SCHEME:

1 • NRIs can Invest in Secondary Stock market in India through SEBI Registered Share
Brokers.
2
3 • PIS Transactions to be routed through a single Designated One Branch of One Bank -
authorized by RBI.
4
5 • NRI Investments on Repatriation / Non-Repatriation Basis is subject to ceiling
prescribed from time to time.
6
7 • NRI to submit form NRI/NRC (Non-repatriation basis) or RPE/RPC (Repatriation basis)
to designated Branches.
8
9 • NRI to furnish an undertaking to that effect that the applicant has no dealing / will not
deal with any other branch / bank under PIS.
10
11 • Authorized branches will give one time permission.
12
13 • Funds for Investments may be fresh remittances or from NRE / FCNR accounts
maintained with the bank.
14
15 • Transactions have to be on delivery basis.
16
17 • Sale proceeds / Income earned may be repatriated subject to payment of applicable
taxes.

49
 FEATURES OF VARIOUS DEPOSIT SCHEMES
AVAILABLE TO NON-RESIDENT INDIANS (NRIS)

Particulars Foreign Currency (Non- Non-Resident Non-Resident Ordinary Rupee

Resident) Account (External)Rupee Account Scheme (NRO
(Banks) Scheme Account Scheme Account)
(FCNR(B) Account) (NRE Account)

Who can NRIs (individuals / entities NRIs (individuals / Any person resident outside India
open an of Bangladesh/ Pakistan entities of (other than a person resident in
account Nationality/ownership Bangladesh / Pakistan Nepal and Bhutan). (individuals /
require prior approval of nationality / ownership entities of Bangladesh / Pakistan
RBI) require prior approval nationality / ownership as well as
of RBI) erstwhile OCBs require prior
approval of RBI).

Joint In the names of two or In the names of two or May be held jointly with residents
account more non-resident more non-resident
individuals individuals
Nomination Permitted Permitted Permitted

Currency in Pound Sterling, US Dollar, Indian Rupees Indian Rupees

which Jap. Yen, Euro, Canadian
account is Dollar and Australian
denominated Dollar.

Repatriability Repatriable Repatriable Not repatriable except for the

following in the account -1)
Current income 2) Upto USD 1
Million per financial year (April-
March), forany bonafide purpose
out of the balances in NRO
account / sale proceeds of assets
in India acquired by way of
inheritance / legacy inclusive of
assets acquired out of settlement
subject to certain conditions.

Particulars Foreign Currency (Non- Non-Resident (External)Rupee Non-Resident

Resident) Account (Banks) Account Scheme (NRE Account) Ordinary Rupee
Scheme (FCNR(B) Account Scheme
Account) (NRO Account)

Type of Term Deposit only Savings, Current, Recurring, Fixed Savings, Current,
Account Deposit Recurring, Fixed
Deposit

Period for For terms not less than 1 At the discretion of the bank As applicable to
fixed year and not more than 5 resident accounts.
deposits years.

50
Rate of Subject to cap : Subject to cap : Banks are free to
Interest : determine interest
LIBOR / SWAP rates for the Fixed Deposits :
rates for term
respective currency / LIBOR / SWAP rates, as on the last deposits.
corresponding maturities working day of the previous month,
(Plus 100 basis points as on for US dollar of corresponding
date -Jan’09). maturities (plus 175 basis points as
on date - Jan’09).
Savings Bank Account
Interest rate shall be at the rate
applicable to domestic savings
account with effect from close of
business in India on 17-11-2005.

Particulars Foreign Currency Non-Resident (External)Rupee Non-Resident Ordinary

(Non-Resident) Account Scheme (NRE Account) Rupee Account Scheme
Account (Banks) (NRO Account)
Scheme
(FCNR(B)
Account)
TDS on Interest earned on
Tax on Interest Income Not Taxable Not NRO deposits
Taxable to be deducted at 30.90%
If the interest amount paid
exceeds
Rs.10 lacs, TDS will be @
33.99%
However, deduction of TDS is
subject to
DTAA with many countries.
For further information pl.
refer to IBD
Circular letter no. 5920 dt.
29.05.08

Operations by Power of Attorney in favour of a resident by Operations on the account in terms of

the non-resident account holder Power of Attorney is restricted to
withdrawals for permissible local
payments or remittance to the account
holder himself through normal banking
channels.

Loans : Permitted up to Rs.100 Permitted Permitted

lakhs up to
a. In India: Permitted
Rs.100
Permitted upto Rs.100
i) to the Account holder lakhs
lakhs
ii) to Third Parties Permitted
up to
Rs.100
lakhs

Particulars Foreign Currency (Non- Non-Resident Non-Resident Ordinary

Resident) Account (Banks) (External)Rupee Account Rupee Account

51
 Scheme (FCNR(B) Scheme (NRE Account) Scheme (NRO
Account) Account)

b. Abroad: Permitted $ Permitted $ Not Permitted

i) to the Permitted $ Permitted $ Not Permitted
Account
holder
ii) to Third
Parties

$ Provided no funds are remitted to India and are used only in abroad
c. Foreign Permitted upto Rs. 100 lacs. Not Permitted Not Permitted
Currency Not Permitted Not Permitted Not Permitted
Loans in
India:
i) To the
Account
holder
ii) To Third
Parties

Particulars Foreign Currency (Non- Non-Resident (External)Rupee Non-Resident

Resident) Account (Banks) Account Scheme (NRE Account) Ordinary Rupee
Scheme (FCNR(B) Account Scheme
Account) (NRO Account)

Purpose of i) Personal purposes or for i) Personal purposes or for Personal

Loan: carrying on business carrying on business activities. * requirement and /
a. In India activities. * or business
ii) Direct investment in India on
purpose *
i) to the ii) Direct investment in India non-repatriation basis by way of
Account on non-repatriation basis by contribution to the capital of Indian
holder way of contribution to the firms / companies
capital of Indian firms / iii) Acquisition of flat / house in
companies India for his own residential use.
iii) Acquisition of flat / house (Please refer to para 6(a) of Sch.1
in India for his own to FEMA 5)
residential use. (Please refer
to para 9 of Sch. 2 to FEMA
5)

ii) to Third Fund based and / or non- Fund based and / or non-fund Personal
Party fund based facilities for based facilities for personal requirement and /
personal purposes or for purposes or for carrying on or business
carrying on business business activities *. (Please refer purpose *
activities *. (Pl. refer to para to para 6(b) of Sch. 1 to FEMA 5)
9 of Sch. 2 to FEMA 5).

b. Abroad : Fund based and / or non- Fund based and / or non-fund Not permitted.

52
To the account fund based facilities for based facilities for bonafide
holder and bonafide purposes. purposes.
Third Party

DEPOSIT SCHEMES

Non Resident Ordinary Account (NRO):

NRIs can opt for this account if they earn an income and incur expenses in
India. Dividend, house rent income, etc., can be credited to this account.
They can choose between opening savings, current or fixed deposit
accounts. Tax is payable on the interest they earn on their bank balance
subject to Double Tax Avoidance Agreement) DTAA. (Country wise Tax
deductible as per DTAA is enclosed). Normally the balance in this a/c is not
freely repatriable. However, RBI has now allows up to one Million Dollar
repatriation from this account in a financial year for specific purposes. The
account can be opened jointly with another NRI or an Indian resident. The
rupee interest rate varies between 3.5% and 8.00% depending on the tenor
of the deposit. One can open and credit NRO account with Indian funds or
with foreign exchange funds. Period of Investment is Min. 15 days to max.
of 10 years).

Taxation:
1 • Banks have obligation under Sec. 195 of Income Tax Act to deduct
tax at source in respect of interest income paid to Non- Resident on
their resident fund. The rate of tax deduction at source (TDS) from
interest paid on deposit is specified in the Finance Act every year.
2 • Accordingly, the TDS on the interest paid on non-resident
(ordinary) accounts attracts TDS @ 30.90%. In case of payment
exceeds Rs. 10 lacs, the TDS is levied @ 33.99% (on account of
surcharge @ 10%). However Sec. 195 permits to deduct eax as
applicable to Double Taxation Avoidance Agreement in case it is
lower.

Details of rate at which the TDS should be levied vis-à-vis the relevant
notification No. of countries having Double Taxation Avoidance
Agreement (DTAA)

Sr.No Country Notification No. % of

TDS
Armenia 292/2004(F.No.503/5/96-FTD) dt. 08.12.04 10
1 1.

Australia GSR 60(E) dt. 22.01.92 15

1 2.

53
 Austria GSR 682(E) dt. 20.09.01 10
1 3.

Bangladesh GSR 758(E) dt. 08.09.92 10

1 4.

Belarus GSR 392(E) dt. 17.07.98 10

1 5.

Belgium GSR 632(E) dt. 31.10.97(1) as amended by Not. No.S0 15

1 6. 54(E) dt. 19.01.01

Brazil GSR 381(E) dt. 31.03.1992 15

1 7.

Bulgaria GSR 205(E) dt. 09.05.96 15

1 8.

Canada SO 28(E) dt. 15.01.98 original Not. No.GSR.635(E) dt. 15

1 9. 24.6.92

China GSR 331(E) dt.05.04.95 10

1 10.

Cyprus GSR 805(E) dt. 26.12.1995 10

1 11.

Czech Republic GSR 811(E) dt. 08.12.1999 10

1 12.

Denmark GSR 853(E) dt. 25.09.89 15

1 13.

Finland GSR 786(E) dt. 20.11.84 amended by Not. No.10671 (F. 10

1 14. No.501/16/80-FTD) dt. 13.08.98

France 9602 (F.No.501/16/80-FTD) dt. 06.09.94, as amended 10

1 15. by Not. No.SO.650(E) dt. 10.07.2000

Germany Not. No.S0836(E) dt. 29.11.96 10

1 16.

Greece Not. No.GSR 394 dt. 17.03.67 20

1 17.

Hashmite Kingdom GSR 810(E) dt. 08.12.99 10

1 18. of Jordhan

54
 Hungary 127/2005 (F.No.500/68/95-FTD) dt. 31.03.05 10
1 19.

Iceland 19/2008 dt. 05.02.08 (F/No.504/3/2004-FTD-1) 10

1 20.

Indonesia GSR 77(E) dt. 04.02.1988 10

1 21.

Israel GSR 256(E) dt. 26.06.96 10

1 22.

Ireland Not. No.45/2002 (F.No.503/6/99-FTD) dt. 20.02.2002 10

1 23.

Itlay GSR 189(E) dt. 25.04.96 15

1 24.

Japan GSR 101(E) dt. 01.03.90 amended by Not. No.SO 10

1 25. 753(E) dt. 16.08.2000 amended Not. No.186/2006 dt.
19.07.06
Kazakastan GSR 633(E) dt. 31.10.97 10
1 26.

Kenya GSR 665(E) dt. 20.08.85 15

1 27.

Korea GSR 111(E) dt. 26.09.86 as amended by GSR 986(E) 15

1 28. dt. 20.12.90

Kuwait SO 2000(E) (Notification No. 277/2007 FTD) 10

1 29.

Kyrgyz Republic Not. NO.GSR.75(E) dt. 07.02.01 10

Libya GSR 22(E) dt. 01.07.1982 20

1 31.

Malaysia GSR 667 (E) dt. 12.10.04 10

1 32.

Malta No.SO 761(E) dt. 22.11.1995 10

1 33.

Mauritius GSR No.920(E) dt. 06.12.1980 20

1 34.

55
 Mongolia S0.635(E) dt. 16.09.96 15
1 35.

Morocco GSR. 245(E) dt. 15.03.2000 10

1 36.

Namibia GSR 196(E) dt. 08.03.99 10

1 37.

Nepal GSR 1146(E) dt. 05.12.88 15

1 38.

Netherlands GSR 382(E) dt. 27.3.1989 amended by Not. No.SO 693(E) 10

1 39. dt. 30.08.99

New Zeland GSR 314(E) dt. 27.3.1989 amended by Not. No.SO 693(E) 10
1 40. dt. 30.08.99

Norway GSP 756(E) dt. 09.09.87 15

1 41.

Oman SO 563(E) dt. 23.9.97 10

1 42.

Philippines GSR 173(E) dt. 2.4.96 15

1 43.

Poland GSP 72(E) dt. 12.2.90 15

1 44.

Protuguese GSR 542(E) dt. 16.06.2000 corrected vide Not. No.SO 10

1 45. Republic 673(E) dt. 25.8.2000

Qatar GSR 96(E) dt. 08.02.2000 10

1 46.

Romania GSR 80(E) dt. 8.2.88 15

1 47.

Russia 10677(F.No.501/6/92-FTD) 21.08.98 10

1 48.

Saudi Arabia Not. No.287/2006-FTD (F.No.501/7/91/-FTD) dt. 17.10.2006 10

1 49.

Singapore GSR 610(E) dt. 08.08.94 – amended by Not. No.185/2005 15

1 50. dt. 18.07.05 (F.No.500/139/2002-FTD)

56
 Slovenia 157/2005 (F.No.501/4/92-FTD) dt. 31.05.2005 10
1 51.

South Africa GSR 198 (E) dt. 21.04.98 10

1 52.

Spain GSR 356(E) dt. 21.04.95 15

1 53.

Sri Lanka GSR 342 (E) dt. 19.4.1983 10

1 54.

Sudan 271/2004 (F.No.501/1/97-FTD) dt. 1.11.04 10

1 55.

Sweden GSR 705(E) dt. 17.12.92 10

1 56.

Swiss GSR 357(E) dt. 21.4.95 amended by Not. No.GSP.74(E) dt. 10

1 57. Confedration 07.02.01

Syria GSR 508z(E) dt. 25.6.85 7.5

1 58.

Tanzania GSR 559(E) dt. 16.10.81 12.50

1 59.

Thailand GSR 915(E) dt. 27.6.86 20

1 60.

Trinidad & GSR 720(E) dt. 26.10.99 10

1 61. Tobago

Turkey SO 74(E) dt. 03.02.97 15

1 62.

Turkmenistan GSR 567 (E) dt. 25.09.97 10

1 63.

UAE GSR 710 (E) dt. 18.11.93 12.50

1 64.

UAR (Egypt) GSR 2363 dt. 30.09.60 20

1 65.

Uganda GSR 666(E) dt. 12.10.04 10

1 66.

57
 U.K. GSR 91(E) dt. 11.02.94 15
1 67.

Ukraine GSR 24(E) dt. 11.01.02 10

1 68.

USA GSR 990(E) dt. 20.12.90 15

1 69.

Uzbekistan SO 790(E) dt. 13.11.96 15

1 70.

Vietnam GSR 369(E) dt. 28.4.95 ameded by Not. No.9860 10

1 71. (F.No.503/7/FTD) dt. 12.09.95

Zambia GSR 39 (E) dt. 18.01.84 10

1 72.

Non Resident External Account (NRE):

This is a repatriable rupee account. The entire balance in the NRE account
can be repatriated outside India at any time without any reference to the
RBI. NRIs can opt for either a savings NRE account or a fixed deposit
account or a current account. The minimum period for a fixed deposit is 12
months and the maximum period normally is 10 years. The interest rate on
this deposit is governed by RBI guidelines and at present term deposit
attracts interest rates equivalent to LIBOR rates plus 175 bps. However, if
we opt for NRE Savings account the interest is equal to the interest rates
offered to a domestic Savings Bank account i.e 3.5%. For our bank it is
Rs.500/= for accounts without cheque book and Rs.1,000/= for accounts
with cheque book. Interest earned under this scheme is exempt from Indian
income tax. The minimum amount for opening a NRE accounts varies from
banks to bank. The NRE account can be opened or credited with
remittances from abroad transfers from existing NRE/ FCNR accounts, or
by deposit of foreign exchange brought into India during a visit.
The account can be opened jointly with another non-resident Indian only. In
other words a resident cannot be a joint account holder in a NRE account.
However the NRIs can authorize an Indian resident to operate their NRE
account and make payments in India by giving him a power of attorney.
Withdrawals for payments in India or payments abroad in any convertible
currency are freely allowed. Permission of the Reserve Bank of India (RBI)
is not necessary. Loans against deposits are available subject to a ceiling of
Rs. 20lacs to both the depositor and the third parties.

Foreign Currency Non Resident (FCNR):

The FCNR account is meant for those who wish to hold the deposit in a
foreign currency of their choice. The current options are the US dollar,
pound sterling, Japanese Yen, Euro and Australian Dollar. The advantage

58
of this account is that one need not to worry about Exchange rate
fluctuations.
NRIs can choose between tenure of 1year to 5 years. The minimum amount
for opening the FCNR account differs from bank to bank. FCNR deposits at
present attract interest rate of LIBOR plus 100 basis Points. This interest is
also freely repatriable.
The FCNR deposit can be opened jointly with a non-resident Indians only.
Loans against the deposits are available in India both to the depositor and
third parties at the request of the depositors. Banks also provides Loan
against this deposit in Foreign Currencies also to the depositors only. The
account can be opened by transferring funds from abroad or from your
existing NRE/FCNR accounts.
Resident Foreign Currency (RFC) :

59
 NRIs returning permanently after a continuous stay of minimum one-year
UNION FLEXI-DEPOSIT

Now, with UBI’s Flexi Deposit Scheme you can just sit back and relax, while you enjoy the high
returns of a Fixed Deposit in your regular Savings Account. To put it simply, have the best of
both worlds! And, What’s more, you get the convenience of a free ATM Card.

SALIENT FEATURES

PURPOSE

This all-new Deposit Scheme has integrated features of the Savings Deposit and Fixed Deposit,
namely liquidity with higher interest returns on surplus funds.

HOW DOES THE SCHEME WORK

The depositor opens a Savings Bank Account with a minimum amount of Rs 10,000/- and will
issue standing instructions to UBI to maintain a certain predetermined balance through out the
tenure of the account and to transfer the surplus funds over and above the said limit to a Fixed
Deposit Account in multiples of Rs 5,000/- with a minimum of Rs 5,000/- for a fixed maturity
period.
Whenever the outstanding balance in Savings Bank Account goes below the stipulated amount
the gap will be bridged by transfer of required funds from depositor’s Fixed Deposit Account in
multiples of Rs 1,000.

WHO CAN OPEN AN ACOUNT

All individuals, singly or jointly who are eligible to open Savings A/C- this scheme is also open to
Non-Resident Indians who are eligible to open an account as per or existing rules and
regulations.

PERIOD OF DEPOSIT

The Fixed period will vary between 46 days to 5 years.In case of NRI Deposit, minimum period
will be one year.

AMOUNT OF DEPOSIT

A minimum Rs 10,000/- as a Savings Bank Account.

A Minimum of Rs 5,000/ - as a Term Deposit(Fixed Deposit), increased in multiples of Rs
5,000/-.

RATE OF INTEREST

As applicable to Savings Bank Deposit and Fixed Deposit in force from time to time. Interest will
be paid on a quarterly on the Fixed Deposit account.

STATEMENT OF ACCOUNT

Statement of Account will be issued to the depositor wherein all the details of Fixed Deposits, Si
At d itt ditd ill b dd

60
Funds held in a RFC account can be remitted abroad freely without the
RBI's approval. The funds can also be withdrawn in rupees to meet
payments in India. If one subsequently goes abroad to become an NRI, the
balance in their RFC account can be converted to an NRE/FCNR account.
As long as one maintains the status of 'Resident but not Ordinarily
Resident', the interest on your deposit will be exempt from tax. The money
held in NRE/FCNR accounts and other foreign exchange funds brought in at
the time of return can be freely invested in RFC deposits. So also, any
income from assets which one continue to maintain abroad.

Savings Account and interest credited will be recorded.

The Bank shall issue no separate Deposit Receipt.

OTHER FEATURES

Free credit card to depositors who maintains a minimum balance of Rs. 1.00 lac.
In selected cities, a international debit card will be issued free of cost to all deposit holders
under this scheme if requested for at the time of opening of the account.
Roll over of deposit on maturity is permitted.
A penalty of Rs 25/- p.m will be levied in case of non-maintenance of minimum balance in the
Saving Account and / or in Fixed Deposit A/C is reduced below the minimum level of
predetermined sum.
Nomination facility is available.
No loan / overdraft / lien will be sanctioned / permitted against FDR held under this Scheme.

UNION BANK UNFIXED DEPOSIT SCHEME FOR NRIs

Under present NRE deposit scheme, if an NRI needs funds, he has the
following options:
1 • To raise a loan against pledge of deposit @ 2% ODR or at interest
rate stipulated from time to time.
2 • To close the deposit before maturity.
3 • Premature closure of deposit entails loss of interest on the entire
deposit. If the deposit has not run for minimum maturity period of 12
months, no interest is payable on the entire deposit.
4 • If deposit has run for a period of 12 months or more, the NRI
depositor is entitled to interest at the rate applicable for the period
the deposit has actually run, subject to penalty of 0.25%.

Both the above options involve a cost to the depositor either in the form of
interest payable on loan or loss of interest on deposit. To mitigate these
difficulties, Unfixed Deposit Scheme was introduced, which facilitates
withdrawal in units of deposits without affecting interest due on subsisting
(continuing) deposit.
IMPORTANT FEATURES OF THE SCHEME
ELIGIBILITY
Non Resident Indians of Indian nationality or origin.

61
AMOUNT OF DEPOSIT

Minimum Rs. 10,000/- or more in multiples of Rs. 5,000/-

Deposits under the scheme will be sub-divided into units of Rs. 5,000/-
each.
Every unit will be treated as a separate deposit. Details of units will be
mentioned on the face of the deposit receipt.
PERIOD OF DEPOSIT : Minimum 12 months, Maximum 36 months with
following
maturities: 12 months, 24 months & 36 months.
RATE OF INTEREST:
Interest Rates applicable on NRE Term Deposits will be paid on deposits
accepted under Unfixed Deposit Scheme.
Union Smart Deposit Schemes:
UNION SMART FOREIGN CURRENCY SCHEME
1 • Mostly NRIs place their repatriable funds in the following term
deposits with the banks either in Indian Rupees or in Foreign
Currency with certain objectives.
2 • NRE Rupee Term Deposits – To avail of comparatively higher rate
of interest.
3 • FCNR (B) Term Deposit – To safe guard themselves from
exchange rate risk.

However, both these schemes have inherent disadvantages. In case of

NRE Rupee Term Deposit the depositor is exposed to possible exchange
rate fluctuations though returns are comparatively higher. It is also possible
that any advantage in rate of interest can be wiped out due to depreciation
of rupee at the time of repatriation. In case of FCNR (B) deposit though
depositor is guaranteed against adverse fluctuation of exchange rates,
interest rates are comparatively low.
Therefore, as a better investment option for NRIs which not only ensures
better returns but also insulate / mitigate exchange rate risk, we have
devised a new deposit scheme in the name and style of Union Smart
Foreign Currency Scheme.
Advantages of the Scheme:
1 • Earn higher returns as compared to FCNR (B) deposit.
2 • Protects against exchange loss.
3 • Interest earned is totally free from Indian Income Tax (as per
existing norms).
4 • Maturity proceeds (both principal + Interest) can be repatriated.
5 • Modalities of the Scheme

Who can open the account:

Non-Resident Indians of Indian Nationality / Origin (NRI/PIO)

Purpose:
To enable the NRIs to maximize the yield of the Foreign Currency
Resources / funds.
Period of Deposit:
Period of deposit will be for 12 months.

62
Rate of Interest
As applicable to NRE Term deposit.
Other Conditions:
The Deposit should be placed under NRE-DRC Scheme only to avail
maximum benefit under this scheme.
1 • All rules relating to NRI deposits viz. Joint Accounts, Nominations,
Additions / Deletions of names, Interest application etc are the same
as applicable to NRE Term Deposits.
2 • No premature extension is permitted.
3 • No credit facility or loan/overdraft is permitted.
4 • Premature withdrawal of the deposit will not be permitted. Under
exceptional circumstances (to be decided by the branch head), if
premature withdrawal is permitted then the depositor will be required
to bear the losses both by way of penalty for premature closure and
on account of cancellation of forward contract in addition to other
charges / fees incurred by the bank. However, gains, if any, made by
the bank on account of cancellation of forward contract will not be
passed on to the depositor.

UNION SMART RUPEE DEPOSIT SCHEME

INTRODUCTION:
With the introduction of LIBOR related interest rate payable on NRE
deposits the Union Smart Foreign Currency scheme is not attractive to the
depositors. Since LIBOR rates are on the upward trend and forward
premium is also looking up we have devised a new scheme for NRIs in the
name of “UNION SMART RUPEE DEPOSIT SCHEME”.
[The scheme will be beneficial as long as interest offered on FCNR (B)
deposit plus forward premium is more than the interest payable on NRE
Rupee deposits for the corresponding maturity period]
The broad features of the scheme are given below:

Who can open the account

Non-Resident Indians of Indian Nationality/Origin (NRI/PIO)

Purpose

To enable the NRIs to maximize the yield on the Rupee Deposits.

Period of Deposit

1 year.

Rate of Interest

As applicable to FCNR (B) – Term deposit.

Other Conditions

The Deposit should be placed under FCNR (B) Scheme only.

63
1 • All rules relating to NRI deposits viz Joint Accounts, Nominations,
Addition/Deletion of names, Interest application etc are the same as
applicable to FCNR (B) Term Deposits.
2 • No premature extension is permitted.
3 • Premature withdrawal of the deposit will not be permitted. Under
exceptional circumstances (to be decided by the branch head), if
premature withdrawal is permitted then the depositor will be required
to bear the losses both by way of penalty for premature closure and
on account of cancellation of forward contract in addition to other
charges/fees incurred by the bank. However, gains, if any, made by
the bank on account of cancellation of forward contract will not be
passed on to the depositor.

64
Particulars Foreign Currency (Non- Non-Resident Non-Resident
Resident) Account (External)Rupee Account Ordinary Rupee
(Banks) Scheme Scheme (NRE Account) Account Scheme
(FCNR(B) Account) (NRO Account)

Interest on Loan against Deposits: (W.E.F. 01.04.2009)

1 1. Loan against NRO / NRE Deposits:
1 a. Self : 2% ODR
2 b. Third Parties : As per rating for Working Capital Facilities if any. Otherwise 1%
over BPLR, subject to min. of 2%ODR
3 2. Loan against FCNR Deposits (Rupee) :
1 a. Self & Third Parties : 1% below BPLR
4 3. Foreign Currency Loan :
1 a. Only for Self : 2% ODR or 2% over LIBOR whichever is higher.

(Refer IC 8295 dated 17th April, 2009)

* The loans cannot be utilised for the purpose of re-lending or for carrying on agriculture
or plantation activities or for investment in real estate business.
Note :
a. When a person resident in India leaves India for Nepal and Bhutan for taking up employment
or for carrying on business or vocation or for any other purpose indicating his intention to stay in
Nepal and Bhutan for an uncertain period, his existing account will continue as a resident
account. Such account should not be designated as Non-resident (Ordinary) Rupee
Account (NRO).
b. ADs may open and maintain NRE / FCNR (B) Accounts of persons resident in Nepal and
Bhutan who are citizens of India or of Indian origin, provided the funds for opening these
accounts are remitted in free foreign exchange, Interest earned in NRE / FCNR (B) accounts
can be remitted only in Indian rupees to NRIs and PIO resident in Nepal and Bhutan.
c. In terms of Regulation 4(4) of the Notification No.FEMA.5/2000-RB dated May 3, 2000, ADs
may open and maintain Rupee accounts for a person resident in Nepal / Bhutan.
The regulations relating to the various deposit schemes available to Non Resident Indians have
been notified vide Notification no. FEMA.5 dated 03rd May, 2000, as amended from time to time.
The relevant notification and A P (DIR Series) Circulars have been placed in RBI website
www.rbi.org.in and may please be referred to for full details.

Remittances Products
Traditional products:

Cheque Collection through Cash Letter system:

1 • Foreign Cheques from ‘C’ Category branches normally routed through nearest ‘B’
Category Branches for Collection / Purchase.
2 • Cash Letter System followed for collection and credit.
3 • Process now Centralized (CCC) at Overseas Branch, Mumbai since De. ‘2006.
4 • Instant credit up to USD 500/= (on sighting credit in Nostro a/c) without observing
prescribed cooling off period for the existing customers as under:
5 • Existing customer is one, who is maintaining operative account with us for a minimum
period of six months.
6 • Facility available only to our SB account customers.
7 • Facility available only for personal transactions & not for any business purpose /
transaction.
8 • For amount exceeding USD 500/= value dated credit after observing cooling off period.
9 • Subsequent return of cheque will be recovered through debit of account along with
exchange & applicable charges.
10 • SB interest will be paid on any delay in crediting the proceeds beyond value date.

Cooling off period is as under:

Cheques in USD drawn on New York 7 days of sighting the credit

Cheques in USD drawn on any other centers of USA 15 days of sighting the credit.

# Cheques in USD drawn on Banks in other countries. On realization from Nostro Bank.

# Charges for collection in this case will be high and the realization time will be about 30 days.

Rupee Drawing Arrangements:

1 • Arrangements with 20 Exchange Houses

2 • These Exchange Houses maintains Rupee a/c with our VOSTRO Branch.
3 • These accounts give us substantial float funds.
4 • Scope to retain the remittances sent as deposits in our fold.
5 • RBI stipulates Internal Control System (ICS) to have effective supervision on RDA
accounts.

List of Exchange Houses with whom we have tie up arrangements:

Country Sr.No. Name of the EH & Address Tel.No.

Sultanate of 1 Modern Exchange Co.LLC. 00968 24832133
Oman
2 Oman International Exchange LLC 00968 24832197 / 24830893
3 Oman & UAE Exchange 00968 24796533, 00968 24750830
Doha-Qatar 4 Habib Qatar International Exchange 00974 4424373 /
4328853 / 4424035
5 Gulf Exchange Co. 00974 4383222
6 Al Dar For Exchange Works 00974 4550455
Dubai 7 Wall Street Exchange 00971 4 2284889
8 Redha Al-Ansari Exchange Est. 00971 4 2296666 /00971 4 2296669
9 Al Mona Exchange Company 00971 4 2260500 / 00971 4 2261665
10 Al Rostamani Int'l Exchange Co. 00971 4 6098100
(PROPOSED)
Kuwait 11 City International Exchange 00965 2448507 /
2441845 / 2441846
12 Al Muzaini Exchange 00965 2426551 (D) 00965 2461135-
39, Extn: 440
13 UAE Exchange Centre 00965 2459417 / 2459418
14 Dollarco Exchange 00965 2412767 / 2454713
Abu Dhabi 15 Al Ansari Exchange 00971 2 6108845 /
6108888 ext. 845
16 UAE Exchange Centre LLC
17 Lari Exchange 00971 2 6223225 / 00971 2 6222282
18 Al Ahalia Money Exchange Bureau 00971 2 6270004
(PROPOSED)
Bahrain 19 Zenj Exchange Co.WLL. 00973 17224352
20 Bahrain Financing Company 00973 17506103 / 00973 39694115
(PROPOSED)

E- Remit Scheme:
Web based remittance product for NRIs
No or minimal paper work
Eliminate the risk of transit loss of instrument, Hassle free, Convenient
Minimal transaction charges.
Fastest credit to beneficiary.
AVAILABLE for
USA and UK
Gulf Countries
Gulf (Speed Remittances):
Our own software installed in Exchange Houses.
Exchange houses key in and upload the file to VOSTRO Branch.
VOSTRO Branch download the files twice in a day 11a.m / 6p.m.
On line credit to all Branches (Time taken < 24 Hrs.)
RTGS / NEFT to other bank’s customers (Time taken < 24 Hrs.)
Through DD / PO wherever RTGS / NEFT is not available.
Exchange Houses to maintain separate accounts at VOSTRO Br.

•USA / UK (TOML):

Hassle free online and convenient remittance facility from USA and UK in
partnership with Times of Money Ltd. (TOML).

Process:-
USA:
1 • Remitter has to log on to http://www.unionbankofindia.co.in and get
him/herself registered for the service by providing
2 • Bank Details for Debit
3 • Personal Details like Social Security Number (SSN)
4 • Selecting his own User ID
5 • Selecting his own Password
6 • Bank does online verification of registration immediately.

1 • We send small amount of USD (less than USD1) as credit and

debit to the bank account of the customer through Automated
Clearing House (ACH) mechanism to ascertain authenticity of bank
detail.
2 • After this we send email to the customer in his registered e-mail ID
to confirm the debit and credit amount in his bank account.
Customer verifies his details from his bank account and confirms,
once the amount is matched the registration process is over.
3 • After which the remitter is allowed to send remittance.
4 • Entire process can be done in 1 or 2 days.
5 • Once the registration process is completed successfully the
customer can send remittance to any beneficiary in India. For this he
has to book a transaction in our website. The system generates a
Remittance Transaction Reference Number (RTRN) for each
remittance.
6 • All transaction booked by various remitter is uploaded by TOML is
send in the evening to Vostro Branch, which is confirmed by Vostro
Branch to Bank of New York (BoNY)
7 • BoNY sends Debit by Automated Clearing House (ACH)
mechanism. We receive the clear credit by ACH mechanism on 4th
day in our Nostro account. We pick up the credit immediately,
convert to Rupee at the rate prevalent on the day and credit to
beneficiary account with us or through RTGS to other bank or issue
DD.
8 • The beneficiaries need to have a bank account with any bank in
India.

UK:
1 • Remitter register himself in the website by selecting “county” as UK
as per process explained above.
2 • Book a transaction by giving beneficiary details.
3 • The system generate a RTRN number and provide our Nostro
details of Dutsche Bank where the customer has to send credit of
GBP funds through his bank’s Internet Banking platform.
4 • The link for various bank’s website in UK is provided in our
website, where the customer can click and go to his bank’s Internet
banking page and complete the transaction.
5 • Remitters provides the RTRN number as reference in the
transaction initiated in his Internet Banking.
6 • Our nostro account receives clear credit on 4th day. The amount is
sighted in our nostro account and reported to Treasury for Exchange
Rate. Amount is disposed of as above.
Advantage:-

1 • Online remittance through Internet.

2 • Simple registration process.
3 • No Paper work involved.
4 • Online tracking of remittance by RTRN.
5 • Help available by e-mail and Toll free number (from USA only)

Requirements:

1 • Social Security Number of remitter.

2 • Bank account in USD in a USA bank.
3 • Bank account in GBP in UK.

Customers can transfer up to USD2,500/= or its equivalent per transaction, with a cap of 12
transactions in a calendar year.

Transaction Charges:

GBP / USD Charges in GBP/USD

50 – 500 3
501 - 1000 5
Above Free

RETAIL PRODUCT

Union Paradise

ELIGIBILITY

1  NRI employees working in Indian Embassy/ Consulate Offices in other countries.

2  NRI employees working in Air India/Indian Airline offices and posted in foreign
countries.

3  NRI employees working in Shipping Companies and posted abroad.

4  NRI employees working in different MNCs and posted abroad.

PURPOSE

1 1. Purchase/ Construction of house/ bunglows/ flat anywhere in India.

2 2. Repairs/ Renovation to existing house anywhere in India.
3 3. Extension of existing house anywhere in India.
4 4. Purchase/ construction of 2nd house/flat anywhere in India.
5 5. Repayment of loan availed from other agency/Bank/ NBFC.
NATURE OF FACILITY

Term Loan

QUANTUM

For Purchase/construction of new house/flat.

1  80% of the cost subject to a Maximum of Rs 100 lacs including cost of house/flat,
stamp duty, registration fees, transfer fees, cost of furnishing, if any etc.

For Repairs/ Improvement

1  70% of the cost of repairs/improvement subject to Maximum of Rs 15 lacs.

For Repayment of loan availed from other Agencies/Bank/NBFC

1  80% of the value of the property or loan outstanding whichever is less.

RATE OF INTEREST (w.e.f 8-12-2008, BPLR – 12.50%)

As applicable in Normal Housing Loan.

Interest will be applied in the account on the basis of daily reducing balance method at monthly rests.
During moratorium period, interest should be recovered separately every month.

MARGIN

For Purchase/Construction of New House - 20% (IC no. 7334 dated 06.03.2006)

For Repairs/Renovation - 30%

For Purchase of old house old up to 15 years - 25%

For Purchase of old house old above 15 years up to 25 years - 30%

PROCESSING CHARGES

0.5% of the Loan amount.

SECURITY

To be secured by EM/SM.

GUARANTEE
One or two guarantees of adequate means from Indian Residents. Spouse should be taken as guarantor.

REPAYMENT

1 For
 Construction/ Purchase of House - 15 years, max.

2 Including moratorium period of 18 months from the date of disbursal or till completion of the
house, whichever is earlier.
3 For Repairs/ Renovations - 10 years, max.

Insurance

The property should be got insured against fire, allied perils, earthquakes and Personal Accident
(death).

Disbursement

By way of DD/PO made and payable in India directly in favour of the builder/ contractor. In case of
construction, disbursement to be linked to the progress in construction.

Documents to be obtained along with application form

1 1. Employment Contract (if the contract is in any language other than English, the same has to
be translated into English and attested by employer/ Indian Embassy).

1 2. Certified copies of the latest salary slips for the past six months.

1 3. Identity card issued by the current employer.

1 4. Continuous Discharge certificate, if applicable.

1 5. Latest work Permit.

1 6. Copy of Visa stamped on the passport.

1 7. Photocopies of NRE bank account (pass-book sheets) for last six months.

1 8. Bio-data covering educational qualifications, age, job experience, nature of profession/

business etc. with necessary proof.

1 9. In addition to the above documents, the applicants should also submit the documents
relating to the house/ flat proposed to be purchased/ repaired.

Security Documents
1 Demand Promissory notes

1 Housing Loan agreement

1 Simple/ Equitable mortgage of house through P.A to be attested by Embassy Officials.

1 Letter of Guarantee.

1 Power of attorney in favour of joint borrower in India for the purpose of creation of EM of
property in India wherever applicable.

Other Terms & Conditions

1 I. As far as possible documents to be executed in India only.

1 II. Documentation and subsequent disputes if any would be subject to Indian Jurisdiction.

1 III. Legal Opinion/ Valuation certificate etc. be obtained before disbursement of loan.

1 IV. House plan approved by competent authority be obtained.

1 V. As the applicants are based abroad, they may apply for loan on-line/internet by downloading
the application form from our Website or else, they may apply on their visit to India.

1 VI. The loan amount shall not be credited to NRE/FCNR account of the borrower.

1 VII. The loan shall be repaid by remittance from outside India through normal banking channels
or out of funds in his NRE/FCNR/NRO account in India or out of rental income derived from renting out
the property acquired by utilization of the loan.

2 VIII. Take-Home pay/ income after considering the propose EMI should not be less than 40%
1 of Gross pay/income.

If Documents Are Executed Abroad

1 The documents can be executed in foreign counties duly attested by Consulate General of
India in respective counties. The stamping of documents should be completed as soon as it reaches
India immediately within 30 days as required under Stamp Act.

2 Whenever borrower comes to India, he should execute a letter of confirmation/ ratification.

Turn around time to be maintained seven days (2+5) on receiving the complete
papers.
 TOOL USED
• In research both primary and secondary data were used.

• Sampling Element: Employees of Union Bank Of India at C – 4,Community

Centre,S.D.A Market, New Delhi office

• Sampling Methodology: The probability-based approach of random sampling was

adopted, in order to give adequate coverage to all possible types of employees.

• Sample Size: A sample size of 15 employees

• Sampling Extent: The procedure of sampling was restricted to the Union Bank Of India.
SDA Branch, New Delhi
 FINDINGS

It was found from the study that bank believes in quality service as well as quantity service:

➢The officials employed are very much enthusiastic about their job.

➢The officials try to make best relation with the customers.

➢The limit of cash vault is Rs. 30, 00,000 for a day.

➢The registers and files are maintained on a daily basis in the computer system.

➢The registers are maintained in a well organized manner.

➢The marketing strategy of the bank is very attractive.

➢The bank always tries to attract customers with innovative offers.

➢The bank is very keen to implement 5’s plan in all its branch
 CONCLUSION

UNION Bank has strong banking operations. They believe in customer satisfaction in every
possible way. They are focused on quality of products and services rather than quantity of
products and services. They have a strong banking solution such as FINACLE which was
developed by Infosys. The bank is rapidly growing. They have a aggressive marketing strategy.
The bank provides speedy way of services to its customer with satisfaction. The quality policy of
the bank is “The branch is committed to the bank of first choice is commercial banking with
lasting customer relationship through continual improvement in service. The Five S plan really
helps in the operation of the organization.

There is a need of constant innovation in retail banking. In bracing for tomorrow, a paradigm
shift in bank financing through innovative products and mechanisms involving constant
upgradation and revalidation of the banks’ internal systems and processes is called for. Banks
now need to use retail as a growth trigger. This requires product development and
differentiation, innovation and business process reengineering, micro-planning, marketing,
prudent pricing, customization, technological Upgradation, home / electronic / mobile banking,
cost reduction and cross-selling.

While retail banking offers phenomenal opportunities for growth, the challenges are equally
daunting. How far the retail banking is able to lead growth of the banking industry in future
would depend upon the capacity building of the banks to meet the challenges and make use of
the opportunities profitably. However, the kind of technology used and the efficiency of
operations would provide the much needed competitive edge for success in retail banking
business. Furthermore, in all these customers’ interest is of paramount importance. The banking
sector in India is demonstrating this and I do hope they would continue to chart in this traded
path.
 REFERENCES & BIBLIOGRAPHY
• www.google.com

• www.wikipedia.org

• www.unionbankofindia.com

• Personal observation.

• Help from staff members of Union Bank Of India,SDA ,New Delhi.

 ANNEXURE
NAME:
COMPANY:
DESIGNATION:
DEPARTMENT:

How many years have you been associated with the organization?
1-4 years 
5-10 years 
10 years & more 
Are you satisfied with your present job profile?
Yes  No. 

Please rank the factors as to how they initiate you to perform well (on a scale of 1 to 5) for
the following: 5 High Involvement 1 Low Involvement
Job satisfaction
Opportunity to perform well at challenging work
Recognition and positive feedback for one’s contributions
Personal support from one’s supervisor
Effort above and beyond the minimum
Understanding the link between one’s job and the organization’s mission
Co-Employees
Assigned Work
Available Opportunities
Policies & Procedures
Compensation & rewards
Work Life Balance
Any other___________________________________________________

re you satisfied with the initiatives taken by the organization?

Yes ⃞ No ⃞
Give reasons
_____________________________________________________________________________________________
_______________________________________________________________
Would you like your organization to introduce some new procedures so as to make staff
more engaged in their jobs?
Yes  No. 
Give reasons:
______________________________________________________________________________
Does your company involve you in decision making of the organization ?
Yes ⃞ No ⃞
What kind of decision making
Does the organization take your suggestion in bringing any changes in the training module?
Yes ⃞ No ⃞
Which all suggestions were provided by you

_____________________________________________________________________________

Do you know what is expected of you at work?

_____________________________________________________________________________________________
_______________________________________________________________

Do you have the materials and equipment you need to do your work right?
_____________________________________________________________________________________________
_______________________________________________________________

At work, do you have the opportunity to do what you do best every day?
_____________________________________________________________________________________________
_______________________________________________________________

In the last seven days, have you received recognition or praise for doing good work?
_____________________________________________________________________________________________
_______________________________________________________________

Does your supervisor, or someone at work, seem to care about you as a person?
_____________________________________________________________________________________________
_______________________________________________________________Is there someone at work who
encourages your development?
_____________________________________________________________________________________________
_______________________________________________________________

At work, do your opinions seem to count?

_____________________________________________________________________________________________
_______________________________________________________________

Does the mission/purpose of your company make you feel your job is important?
_____________________________________________________________________________________________
_______________________________________________________________

Are your associates (fellow employees) committed to doing quality work?

______________________________________________________________________________

Do you have a best friend at work?

______________________________________________________________________________

In the last six months, has someone at work talked to you about your progress?

In the last year, have you had opportunities at work to learn and grow?
______________________________________________________________________________

List two schemes at your organization aimed at engaging employees.

_____________________________________________________________________________________________
___________________________
Does your company appreciate your work?
Yes  No. 
Please Specify
______________________________________________________________________________
Does the company provide you incentives?
Yes  No. 
On what grounds
______________________________________________________________________________
It is true that higher the employee engagement, better the organization's performance?
Yes  No. 
Please Specify
______________________________________________________________________________
Your involvement in your job leads to higher individual productivity?
Yes  No. 
Give reasons
______________________________________________________________________________

Would you like your organization to introduce some new procedures so as to make you more
involved in your job?
Yes  No. 