अनुसंधान व प्रकाशन अनुभाग,/Research & Publication Section,

केनरा बैंक प्रबंधन संस्थान, मणिपाल/C I B M, Manipal

अध्ययन व णवकास शीर्ष/Learning & Development Vertical
 Canara Institute of Bank Management, Manipal

CIR NO CIRCULAR GIST

1/22 Canara bank officers’ service regulations 1979 – Reg 42 (4) – halting allowance payable for the period of taking
over charge
The Competent Authority, in partial modification in the guidelines as enumerated in 01/2004 point no. 28.1.1 and
29.1, has permitted payment of Halting Allowance on merits upto a maximum period of 15 days or till the date of
providing/fixing of quarters, whichever is earlier i.e. now, Halting Allowance payable to Officer Employee on
transfer is linked to providing / fixing of quarters at the transferee place.
2/22 Credit Guarantee Scheme For Animal Husbandry And Dairying (CGSAHD)
 Department of Animal Husbandry and Dairying, Government of India has approved the Credit Guarantee
Scheme for Animal Husbandry and Dairying (CGSAHD) for loans sanctioned to MSMEs under Animal Husbandry
Infrastructure Development Fund(AHIDF).
 The Scheme will be implemented under Credit Guarantee Fund Trust for Animal Husbandry and Dairying
through the Trustee Company, NABSanrakshan Trustee Private Limited which is a wholly owned subsidy of
NABARD.
 A Credit Guarantee fund of Rs.750 Crore will be established for this purpose.
 Annual guarantee fee of 1% will be charged on sanctioned amount in first year and outstanding amount in
remaining years.
3/22 Credit Card Recovery Campaign from 01.01.2022 to 31.03.2022
 Bank has decided to observe Credit Card Recovery Campaign from 01.01.2022 to 31.03.2022.
 The campaign is targeted to reduce 50% Credit Card NPA accounts by both amount and count as on
30.11.2021(Base date) and effective cash recovery based on the NPA credit card portfolio. Circle/RO/Branch
wise targets are allotted based on the NPA Credit Card liability, accounts and cash recovery. Reward and
Recognition for best performing Circles, ROs and Branches.
 Circle offices to conduct minimum 10 Canadalats cluster wise involving group of Branches during the campaign
period covering all Branches/Regional Offices in sync with the adalat schedule during the campaign period.
4/22 PM SVANIDHI scheme prompt and timely sanction/disbursement of loans and reiteration of guidelines.
While reviewing the performance of PM SVANidhi scheme and digital on-boarding of street Vendors (SVs), the
following action points have been put forward to improve the performance under the subject scheme:
 Branches to dispose of all the applications that are pending for sanction and disbursement in PMS portal and
ensure digital on-boarding of 100 % beneficiaries by January 26, 2022 i.e, Republic Day in the 75th year of
Indian Independence.
 Branches to mark the successfully repaid 1st tranche loans as closed on the portal so that these SVs can apply
for 2nd tranche loan. Branches to disburse the 2nd tranche loans within 5 days of receipt of application,
treating such SVs as valued customers.
 Branches to ensure that loans settled by CGTMSE are not marked for closure in PMS portal.
 In case of PM SVANidhi applications rejected for reason “no/low CIR score” Branches to reconsider these
applications and sanction the eligible cases by duly contacting the applicants and to ensure that applications
shall not be rejected due to low Credit score in the bureau. Further, Branches not to return applications in case
of minor discrepancies.
5/22 Padho Pardesh Scheme of Interest Subsidy on Education Loans for Overseas Studies for the students belonging
to the Minority Communities – Opening of SAS package/In-house portal for submitting claims for DECEMBER
2021 Quarter (FY 2021-22)
 Ministry of Minority Affairs, Government of India has permitted to submit the FRESH & RENEWAL claims for
DECEMBER 2021 Quarter (FY 2021-22). Accordingly, the SAS package for Padho Pardesh Scheme is kept open
from 01.01.2022 to 29.01.2022 for submission of eligible claims under the Scheme.
 As per the instruction of Ministry of Minority Affairs, Government of India a new portal has been developed
by our bank to bring an awareness about the benefits of the Scheme for the students belonging to Minority
Communities. In this regard, branches have to inform such students who have been sanctioned loan under
the subject scheme from 01.04.2021 onwards to submit registration in the newly developed Student Portal
https://canarabankcsis.in/Padho_STD_Portal/login.aspx
6/22 Change of Jurisdiction of Consumer Commissions
The monetary jurisdictions have been revised by the Government, under the Consumer Protection (Jurisdiction of
the District Commission, the State Commission and the National Commission) Rules, 2021 (Notified under G.S.R.
912(E) dated 30.12.2021) in following manner-
Forum Pecuniary Jurisdiction (Revised)
District Consumer Disputes Redressal Complaints where value of the goods or services
Commission paid as consideration does not exceed ₹ 50 lakh
State Consumer Disputes Redressal Commission Complaints where value of the goods or services
paid as consideration exceeding ₹ 50 lakh upto ₹
2 Crore.
National Consumer Disputes Redressal Complaints where value of the goods or services
Commission paid as consideration exceeds ₹ 2 Crore
7/22 Submission of DAY-NRLM Interest Subvention Claims through SAS Package for FY 2021-22 – June & September
Quarters
MoRD, GoI has permitted to submit the Regular & Additional subsidy claims under the subject scheme for June &
September Quarters for all eligible accounts.

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The DAY-NRLM package under Single Authentication Service (SAS) is available from 01.01.2022 to 15.01.2022 for
submission of claims.
8/22 Pandemic Covid-19 - preventive measures for safety and welfare of the employees – work from home facility
for pregnant women employees
Owing to the spread of highly mutant COVID-19 variant viz., B.1.1.529 (Omicron), across the country, our bank has
decided to extend Work From Home facility to the pregnant women employees, if they wish to avail the same. It
is advised that the Branch/ Section Heads may decide the nature of work to be entrusted to such employees under
their control by following procedures mentioned in HO Cir. 400/2021 dated 09.06.2021.
9/22 Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies in Masters,
M.Phil & Ph.D for Other Backward Classes (OBCs) & Economically Backward Classes(EBCs)
Ministry of Social Justice & Empowerment, Government of India, has communicated opening of Web Portal for
submission of December 2021 Quarter claims of FY 2021-22 from 01.01.2022 to 29.01.2022 for the students
belonging to Other Backward Classes (OBCs) & Economically Backward Classes (EBCs) for the Education Loans for
Overseas Studies for approved Courses in MASTERS, M.PHIL & Ph.D.
10/22 Capturing of Cheque number as 12 digit
 SAN (Short Account Number) was implemented to address the issue of overlapping of cheque series and
consequent fetching of wrong account numbers during Inward Clearing process at CTS Grids.
 Now Capturing of Cheque number as 12-digit (i.e.6-digit SAN + 6-digit Cheque Number) is mandatory while
issuing of cheque books as well as transactions in CBS.
 Cheque book issuance is allowed only through inventory module. During any cheque book issuance, the same
need to be first entered in the inventory module FP IV001 and then user need to select the same in CHM37
screen.
11/22 Modification in delegation of powers for credit sanctions – Gold loan schemes
The competent authority has permitted modifications in the delegation of powers in respect of various Gold Loan
schemes of the bank
Sanctioning Authority Maximum Sanctioning Maximum aggregate
Powers per scheme per sanctioning powers
borrower* under various gold loan
schemes per borrower
Branch-in-charge of Small Branches Rs. 35 lakhs Rs 50 lakhs
Branch-in-charge of Medium Branches Rs. 35 lakhs Rs 70 lakhs
Branch-in-charge of Large Branches Rs. 35 lakhs
Credit Managers/ Senior Managers in Rs. 35 lakhs Rs 105 lakhs
VLBs/ELBs
*Maximum quantum of finance for Agri Gold Loan for Crop Cultivation shall continue to be Rs. 10 lakhs per
customer which is a sub limit of Agri Gold Loan schemes.
@ Wherever, the limits are exceeding the proposed Delegated powers as per the above table, the same shall be
permitted by AGM-RO-CAC & above authorities.
12/22 -
13/22 Pandemic Covid-19 - preventive measures for safety and welfare of the employees
In the wake of emergence of highly mutant COVID-19 variant viz., B.1.1.529 (Omicron), to safeguard our staff
members from contracting the disease, Various guidelines are issued by our bank for compliance. It also includes
that Physical attendance of employees at any time shall not exceed 70% of the staff strength and remaining 30%
staff shall Work from Home.
14/22 Rates of interest on rupee loans and advances (MCLR, RLLR, Base Rate, STRLLR, EBLR1and EBLR2) w.e.f.
07.01.2022
Latest ROIs are- MCLR (One year)- 7.25%, RLLR-6.90%, Base Rate- 8.80%, STRLLR- 4%, EBLR1- 6.65%, EBLR2- 4%

Please note here-

 Bank has introduced Short Term Repo Linked Lending Rate (STRLLR) with Policy Repo Rate as benchmark for
certain category of customers and advances.
 Bank has introduced External Benchmark Lending Rate (EBLR1) with 1-year G-sec par yield as benchmark for
medium term tenor advances to certain category of customers.
 Bank has introduced External Benchmark Lending Rate (EBLR2) linked to policy Repo Rate in order to transmit
medium & long term interest rate movement to the corporate clients requiring medium and long term credit.
15/22 Pandemic Covid-19 - preventive measures for safety and welfare of the employees - Covid appropriate behavior
All the staff members are hereby advised to quarantine themselves immediately in case of any symptoms/ tested
positive and take necessary precaution to avoid spreading of highly mutant Covid-19.
Inspite of the above instructions, if any staff member is found violating the Covid Appropriate Behaviour, Bank will
view the matter seriously and appropriate action will be initiated.
16/22 Sovereign Gold Bond Scheme 2021-22 Series IX – Issue Price
 The Sovereign Gold Bond 2021-22 Series IX – Open for Subscription from 10/01/22 to 14/01/22;
 All the Branches are authorised to open Sovereign Gold Bond;
 Reserve Bank of India has fixed the Issue Price at Rs. 4,786/- per gram of Sovereign Gold Bond;

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 The Issue Price of the Gold Bond will be Rs 50/- per gram less than the nominal value to those Investors
applying Online and the payment against the application is made through Digital Mode.
17/22 Availability of Grant Assistance from NABARD for promoting New Joint Liability Groups (JLGs) either directly by
Banks or by Corporate Business Correspondents (BCs)/ NGOs
 To encourage the financing of JLGs, NABARD is providing grant assistance @ Rs.4,000/- per JLG to commercial
Banks or Corporate BC/NGO-JLGPIs (JLG promoting institutions) who has tie-up commercial banks for
formation, nurturing and credit linkage of new JLGs.
 For claiming the incentive/grant assistance from NABARD, Bank needs to enter either Bi-Partite MoU with
NABARD in case of incentive claimed for the JLGs formed by Bank directly or Tri-Partite MoU among the
Corporate BC/NGO-JLGPIs, NABARD & Banks in case of JLGs formed by NGOs.
 All Circle Offices are advised to contact respective Regional Offices of NABARD and explore the possibilities of
entering in to MoU or Tri-Partite agreement with NABARD in order to encourage formation & financing of JLGs.
18/22 Standard Operating Procedure (SOP) for automated asset classification in CBS
Circular No.786/2021 dated 09/12/2021 was issued on “Prudential norms on Income Recognition, Asset
Classification and Provisioning pertaining to advances”.
Now bank has issued Standard Operating Procedure adopted for system based NPA Classification functionality is
furnished in Annexure-I to this circular. The system driven asset classification is subject to exceptions in certain
circumstances. These exceptions from automated classification are furnished in Annexure-II to this circular.
19/22 Email Protocol
All are advised to follow proper email protocol for efficient e-mail communication by invariably incorporating the
following information in the email signature:
a) Name of the sender/official concerned
b) Scale/Grade/Designation
c) Office Name/Section Name
d) Office Telephone Number/Mobile Number
20/22 “Krishi Safal” -Mega Core Agriculture Disbursement Campaign-March 2022 from 01.01.2022 to 31.03.2022.
To reach Core Agriculture Advances Target of bank for March 2022 Quarter, bank has launched Krishi Safal
Campaign from 01.01.2022 to 31.03.2022 to focus on Fresh Core Agriculture loan disbursement especially on Term
loan and New Agricultural Schemes.
Performing AEOs, Branches/ROs/Cos during the campaign will be suitably rewarded.
21/22 Special provision for TDS/TCS for non-filers of income-tax return (w.e.f.01-07-2021).
Vide HO Cir.268/2021 dated 26-04-2021 wherein the guidelines on Tax Deduction at Source (TDS)/Tax Collection
at Source (TCS) Rate(s) w.e.f. from 01-04-2021/01-07-2021 have been provided. Guidelines on special provision
for TDS/TCS under Section 206AB & 206CCA of the Income Tax Act, are reproduced in this circular.
Section 206AB & 206CCA is applicable While making payment/credit to customer/vendor who are identified as
“Specified Person”.
Here Specified Person means - a person who has not filed the returns of income for both of the two assessment
years relevant to the two previous years immediately prior to the previous year in which tax is required to be
deducted, for which the time limit of filing return of income under sub-section (1) of section 139 has expired; and
the aggregate of tax deducted at source and tax collected at source in his case is Rs.50,000/- or more in each of
these two previous years:
Provided that the specified person shall not include a non-resident who does not have a permanent establishment
in India”.

For specified persons- as per Section 206AB- TDS will be applicable higher of – Twice of applicable rate or 5% and
as per section 206CCA- TCS will be applicable at higher of – Twice the specified rate or 5%.
22/22 Need and Importance of updation of mailing & permanent address with correct PIN code along with Mobile no
& email ID in CBS system for every customer of the bank
 Updation of valid mobile no & email ID is very important & critical for efficient delivery of banking services as
well as effective follow-up with customers
 Re-verification and updation/correction of Name, mailing & permanent address with correct PIN code and
valid mobile no & email ID of the customers is need of the hour to ensure delivery of the banking services at
the door-step of the customers
 Indent for new personalized cheque book for customers by branches MUST be made only after re-verification
of COMPLETE address with valid PIN Code, mandatorily
 Branches to generate report of “Undelivered Cheque Book” returned to CPHs on DAILY basis and follow up
with customer for KYC documents and address updation/correction
 ROs to generate the above report for branches of their region and monitor with them for timely updation of
the required details and RO/CO executives visiting the branches should record their observations in the visit
report for effective control & follow-up by higher authorities.
23/22 Implementation of Credit Card Management Package to Branches/ ROs/ COs Through Single Authentication
System (SAS)
Bank has updated Credit Card Management System package and made available in SAS. Now branch, ROs & COs
can get unified information of all credit card customers at one place with option to download e-statement at any
time.
24/22 Introduction of “Online Monitoring Tool” for Mobile Banking App through our SAS package

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 For betterment of Customer Service and to reduce the TAT of complaints, Online Monitoring Tool for Mobile
banking and UPI has been introduced in our SAS package which will be helpful to our Branches for analyzing
and resolving the complaints received regarding Mobile Banking and UPI.
 Using this application/tool, Staff members at Branches can easily check and view the status of MB/UPI
Onboarding, Transaction status etc.as on previous day.
 For further information / FAQs, Branches/Offices may access CANNET>>Let’s Get Digital>>DBS Wing>>Mobile
Banking to improve their knowledge/skill & troubleshooting.
 The Turnaround Time (TAT) for providing the resolution for the raised complaints related to Digital Product is
maximum 3 working days depending upon the nature & complexity of the issue. If the resolution is not received
within 3 days, branches may escalate the same as per the escalation matrix.
 After the Preliminary Analysis, if branches are unable to provide resolution; they have to raise the Case in Non-
CBS Canara Tech Support under SAS>>General>>Canara Tech Support-Non CBS (New) which will be processed
by our HO: DBS Helpdesk for providing the resolution.
25/22 Revision in Interest Rates on Domestic & NRO Term Deposits w.e.f. 17.01.2022
Downward Revision in Interest Rates on Domestic and NRO Term Deposits w.e.f. 17.01.2021 in the various slabs-
For deposit less than Rs 2 crore – slab 1 to 9 ROI is @ 2.90%, 3.90%,3.95%,4.40%,5.00%,5.00%,5.10%,5.25%,5.25.
For Canara Unique of 1111 days ROI @ 5.35% & For Canara Amrit 75 @ 5.40%
26/22 Revision in Interest Rates on NRE Term Deposits w.e.f. 17.01.2022
The Rates of interest on NRE term deposits stands downwards revised w.e.f. 17.01.2021.
There is Total slabs of interest. For slab 1 to 2 – ROI is @ 5.00%, Slab 3-@ 5.10% and for Slab 4, 5 ROI is - @ 5.25%
For Canara Unique of 1111 days ROI @ 5.35% & For Canara Amrit 75 @ 5.40%
27/22 Waiver of online pre-disbursement review of personal loans upto Rs 5.00 lakh sanctioned at RAHs – modification
in policy guidelines
All Retail loans sanctioned by Manager/Sr.Manager of RAH/RAH-in-charge shall be reviewed by next higher
individual authority at RO through online pre-disbursement review of loan sanction and approval of loan
documents for retail loans under LAPS except for all personal loans upto Rs 5.00 lakh.
Post Sanction Review to be carried out for the above cases as applicable to other loans & advances as per HO Cir
204/2021.Except the above, all other existing guidelines remain unaltered. The above relaxations are permitted
upto 30.06.2022 and will be reviewed thereafter for further continuation.
28/22 Enabling green pin/ forgot pin functionality for credit cards through IVRS channel
Presently Customers can generate GREEN PIN /FORGOT PIN generation for Credit Cards through ATM Channel,
Mobile Banking and Internet Banking (lite version). Now, Green PIN/ Forgot PIN generation functionality for Credit
Cards has been enabled through IVRS channel by dialing at toll free number 18004250018.
29/22 -
30/22 Pandemic Covid-19- special leave for covid-19 affected employees – revision
Considering the continuing extra-ordinary situation and revised guidelines issued by the Ministry of Health and
Family Welfare, the Competent Authority has permitted to revise the guidelines for Special Leave for COVID-19
affected employees, with immediate effect as under:
 Extend 7 days additional special COVID-19 leave to employees who were earlier affected with COVID-19 and
who have already availed special COVID-19 leave upto 14 days.
 Reduce the maximum special leave extended to COVID-19 affected employees from 14 days to 7 days.
31/22 Guidelines on Maintenance of Library
In order to provide more clarity on maintenance of Library at CIBM Manipal, all L&D Centre and MIPD sections
COs, this circular has been issued with reiteration of existing guidelines, is being issued superseding our earlier
circulars / communications.
32/22 -
33/22 Group Term Life Insurance Policy for all permanent employees of the bank in case of death while in Service
The Competent Authority has permitted to renew Group Term Life Insurance Policy for the year 2022-23, for all
permanent employees of the Bank in case of death while in service with sum assured as under:
Subordinate Cadre - 20 months’ gross salary subject to a minimum of Rs. 10 lakhs.
Clerical Cadre - 20 months’ gross salary subject to a minimum of Rs. 15 lakhs.
Officer Cadre - 20 months’ gross salary subject to a minimum of Rs. 20 lakhs.

Accordingly, Bank has taken GPITL from M/s. Bajaj Allianz Life Insurance Ltd. for period 01.02.2022 to 31.01.2023
and all permanent employees (including Probationary Employees) of the Bank as on 01.02.2022 shall be covered
under the policy.
Accordingly, a link has been enabled in HRMS under path Self Service >> GTLI Willingness, wherein the employees
have the option to give their consent/dissent to enroll themselves in the policy. The link for the same will be
available in HRMS upto 03.00 P.M. on 24.01.2022.
34/22 Farm machinery finance - approved list of tractors
Approved List Farm Machinery – Addition of new model of Tractor- MAHINDRA, JIVO 245 DI. Consolidated list of
our earlier Circulars on “Farm Machinery Finance – Approved List” is also given in this circular.
35/22 Rationalisation of Risk Weight and Reduction in Margin for New Housing Loans sanctioned till 31.03.2022
As per 807/2021- Modified guidelines on LTV Norms and Risk Weights for Individual Housing Loans sanctioned on
or after 16.10.2020 & as per 912/2021 where in delegation of powers for sanctioning housing loans with reduced
margin up to 10% were communicated.

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Branches / Offices shall note that the above guidelines with regard to relaxation in LTV norms, Risk Weight and
margin on Housing Loans shall be applicable for Loans sanctioned till 31.03.2022 only.
36/22 -
37/22 IBA group medical insurance scheme for retired employees – renewal of the policy for the year 2021-22
The IBA Group Medical Insurance Policy for the retired employees has been renewed for the year 2021-2022 with
M/s. National Insurance Company Limited.
The coverage under the Policy is as under:
1. Those retirees who are already covered under IBA Group Medical Insurance Policy till 31.10.2021 but could not
join in the renewal policy on time for obvious reasons, are covered under the Policy from 01.12.2021 to 31.10.2022.
2. For the new entrants, i.e., who have not opted for the IBA Group Medical Insurance Policy for retirees till date
or who have failed to renew the Policy till last year but are willing to continue in the current year policy period are
covered under the Policy from 01.12.2021 to 31.10.2022.
The present year policy is uploaded in Canara Bank website under the path:
www.canarabank.com>Announcements>Ex-Employees’ page
38/22 Timely review/renewal of limits – reiteration of guidelines
 As per RBI regulatory guidelines, an account where the regular/ ad hoc credit limits have not been reviewed/
renewed within 180 days from the due date/ date of ad hoc sanction, the IRAC norms shall be applicable.
 Hence, Branches/Offices to ensure renewal of regular limits well before the expiry of original/extended
tenability. In case of ad hoc credit limits the same has to be regularized within the due date.
 Review & Extension of Tenability of limits should always be followed by regular Renewal of Limits. In case
Review & Extension of limit is permitted, the limits shall be renewed before the expiry of the extended
tenability.
39/22 SOP for GECL Claim Preferment in NCGTC portal
With a view to facilitate seamless process flow and better clarity of Branches/Offices, consolidated guidelines with
regard to “Preferment of Claims” under GECL has been furnished as Annexure-I, II & III to this circular.
Please note following important points-
 The MLI shall furnish the details of the account which would include date of NPA, amount in default, status of
legal action etc. in the claim lodgement page available on the portal. On submission of this claim, NCGTC would
initiate action to approve the claim request and arrange to pay 75% of the amount in default within 30 days
of the claim date provided all requisite documents are submitted. This shall be treated as Interim Claim.
 The MLI shall also furnish details of the recoveries made in the account and after adjusting such recoveries
towards default amount relating to first charge and the legal costs incurred by them, remit the balance amount
to NCGTC within 30 days, failing which MLI shall be required to pay the recovered amount along with interest
at 2% over and above the prevailing repo rate from the date of recovery to the date of payment.
 Final Claim- On completion of the recovery Proceedings or till decree gets time barred, whichever is earlier,
the MLI shall submit its claim for the balance 25% of the amount in default (net of recoveries, if not already
remitted).
 Arbitration proceedings are not considered as legal action for recovery of dues. However, a carve out has been
provided for low value loans of upto Rs.10 lakh. For such loans i.e. of ECLGS accounts where the total loan
outstanding of a borrower as on 29.02.2020 (as per Bureau outstanding) does not exceed Rs.10 lakh, the filing
and payment of interim claim shall be permissible without insistence on initiation of legal proceedings.
40/22 Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) -Invocation of guarantee & preferment
of claim ( Reiteration of existing guidelines)
To facilitate seamless process flow and better clarity regarding accounting procedure of CGTMSE claim for
Branches/Offices, consolidated guidelines with regard to “Preferment of Claims” under CGTMSE has been
furnished as Annexure-1 to this circular.
Please note following important points-
 NPA Marking- At CGTMSE Portal (Login page → Guarantee Maintenance → Periodic Information → NPA
Details). Timeline- as per Trust- by end of subsequent quarter from the quarter account become NPA. As per
Our bank guidelines in 433/2019- marking has to be done within 15th of subsequent month from month
account become NPA.
 Preferment of claim- As per Trust guidelines- within a maximum period of 3 years from the NPA date or lock-
in period whichever is later, As per Our bank guidelines in 433/2019-within 180 days of NPA date or expiry of
lock-in period whichever is later, if the NPA date is on or after 15/03/2018. Lock in period is 18 months.
 Before lodging of claim- The credit facility has to be recalled and the recovery proceedings have to be initiated
under due process of law.
 In case of claims lodged on or after October 08, 2021, initiation of legal proceedings as a pre-condition for
invoking of guarantees shall be waived for credit facilities having aggregate outstanding up to ₹1,00,000/- by
the delegated authority (AGM-RO-CAC & Above), who shall examine all such accounts and take a decision for
not initiating legal action, and for filing claim under the scheme.
 The trust will arrange to pay 75% of the amount in default within 30 days of the claim date provided all
requisite documents are submitted. Final Claim of 25% - On completion of the recovery Proceedings or till
decree gets time barred, whichever is earlier, the MLI shall submit its claim for the balance 25% of the
amount in default (net of recoveries, if not already remitted).
41/22 Guaranteed Emergency Credit Line (GECL) - FAQs updated as on 28.12.2021
M/s. NCGTC has communicated revised FAQs updated as on 28.12.2021 wherein FAQ 165 has been added over to
previous FAQs. The same has been furnished as Annexure to this Circular.

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42/22 Internal ombudsman in banks – reiteration of guidelines

As per RBI Internal Ombudsman scheme 2018-
 IO will not entertain and examine first resort complaints. All complaints shall be first redressed at Bank’s
Internal Grievance Redressal Mechanism.
 Bank has to mandatorily refer all rejected / partially redressed complaints to IO before replying to the
complaints.
 Before submitting reply to Banking Ombudsman, RO/COs to take views of IO.
 Complaints shall not be rejected at branch/ offices without consent of IO.
 The Internal Ombudsman’s decision shall be binding on the bank.
43/22 Loans and advances against shares/debentures: revised list Of companies
 This circular contains revised consolidated list of companies whose shares and debentures have been approved
by the Bank, for granting of loans/advances against pledge of shares/debentures.
 No fresh loans/advances shall be granted against securities held in materialized form.
 No fresh loans / advances shall be granted against securities which are not appearing in the approved list.
44/22 -
45/22 Coverage of eligible education/skill loans sanctioned under CGFSEL & CGFSSD for December 2021 quarter
 All Education Loans sanctioned up to a limit of Rs.7.50 lakhs without any collateral security/third party
guarantee are eligible for coverage under Credit Guarantee Fund Scheme for Education Loan (CGFSEL).
 Skill Loans sanctioned up to a limit of Rs.1.50 lakhs without any collateral security/third party guarantee are
eligible for coverage under Credit Guarantee Fund Scheme for Skill Development Loan
 Timeline for submitting the details for December 2021 quarter is as under:
Branch-23.02.2022, Regional Office-25.02.2022, Circle Office-28.02.2022
46/22 Observing February 2022 as “Self Help Group (SHG) credit linkage month”.
As per the directions of top management, every year one month in each quarter (May, August, November &
February) is being observed as “SHG Credit linkage month” by identifying and financing targeted number of SHGs.
Branches/Offices have to intensify SHG fresh credit linkage & Ensure linkage of all eligible SHGs during the
campaign period. The top performers in SHG outstanding addition and fresh SHG credit linkage against the special
target during the SHG campaign period (01.02.2022 to 28.02.2022) will be recognized and rewarded in proper
forum.
47/22 Policy guidelines on Canara Retail Grade (CRG) - Corrigendum
 In respect of the following schemes, CRG shall not be applicable and CRG need not to be arrived:
o Canara Pension
o Education Loans
o Gold Loans
o Housing Loans to Corporates
 In case of multiple borrowers- For DOP- CRG Grade of all the applicants is not the same, the higher (worst)
CRG Grade among the applicants (including non-earning members), shall be considered for deciding the
Delegation of Powers.
ROI: For the purpose of Rate of Interest, best CRG grade among all the applicants whose income is taken into
account for arriving the loan quantum/repayment/NTH shall be considered. For deciding Rate of Interest, CRG
grade of non-earning members has to be ignored.
 All other guidelines to the extant not modified shall continue to remain unchanged as per HO Circular 825/2021
dated 28.12.2021.
48/22 ASBA (Application Supported by Blocked Amount) - New package (Introduced through SAS)
 ASBA is Application process for subscribing to an Initial Public Offer (IPO)/ Follow-on Public Offer (FPO)/ Rights
Issue/ Non Convertible Debenture (NCD) containing an authorization to block the application money in a Bank
Account.
 All branches of the Bank are authorized to accept the Normal ASBA (Bank ASBA) applications from our CASA
customers.
 Bank has introduced new ASBA package through SAS for user convenience.
 User Guidelines is provided as enclosure to this circular.
49/22 Modifications in Sweep-in / Sweep-out facility – THIRD ADDENDUM
The modifications permitted in Sweep-in / out functionality Cir. 599/2021 dated 09.09.2021, are automated for
validation at system level (in tune with Cir. 599/2021) for sweep instructions. The changes have now been
implemented from 26.01.2022.
50/22 Approved list of transport operators– additions, renewals, withdrawals/ non- renewals & other changes
IBA has informed the details of Additions, Renewals, Withdrawals/ Non-Renewals & Other Changes in the
Approved Transport Operators during the period from 01.11.2021 to 31.12.2021. Same is available in annexure to
this circular.
51/22 Scheme of delegation of powers for credit sanctions-updated till 31.12.2021
The previous consolidated document on delegation of power was issued vide HO Circular 678/2021 dated
13.10.2021. Now Bank has issued consolidated circular on DOP with all updates till 31.12.2021.
52/22 Introduction of functionality for movement of non-personalized debit cards stock between branches/ROs/COs
through SAS integrated card indent-new package
 Bank had introduced Integrated Card Indent package in SAS in May 2020. Now to have better control and
monitoring of non-personalized debit card stock, a new option of Transfer/Accept cards in the package has

परिपत्र साि: Gist of Circulars 6

 Canara Institute of Bank Management, Manipal

been introduced for movement of Non-Personalized debit cards between Branches/RO/COs. The cards are
generated without any specific DP codes and not pre-linked to any branch DP codes.
 This will facilitate the Branches/ROs/COs for optimum usage of cards and to maintain card stock movement
register in electronic mode.
 Branches to note that movement of Non-Personalized debit cards between branches/offices should happen
through the above functionality only with the concurrence of respective ROs and physical card movement
should be carried out through approved courier/post or by hand delivery duly taking acknowledgment as per
guidelines prescribed for security items. All the branches/offices should acknowledge the card consignments
in SAS-Integrated Card Indent-New package invariably.
53/22 Introduction of RERA Current Account – Product code 216
Real Estate Regulatory Authority was established as per the RERA Act 2016, for transparency in the real estate
industry.
In order to canvass maximum RERA account for individual projects of the builders (with implementation of RERA
guidelines), a new current account product christened as RERA account (product code - 216) has been enabled.
The account supports automated fund flows as per the RERA act.
RERA Current Account scheme is a combination of three current accounts viz.
1. CA RERA collection account (Pooling account) :
2. CA Project’s RERA designated account :
3. Regular Current account of builder
The account is to be kept in No Debit status. The status is to be changed at the time of transactions at branches on
production of stage-wise completion certificate. After transactions, the status is to be changed back again to no
debit.
54/22 Master policy on Credit Risk Management – Domestic branches -For FY 2021-22 –updated till 31.12.2021
This circular contains master policy guidelines on our Bank’s Credit Risk Management Policy updated till
31.12.2021.
55/22 -
56/22 Comprehensive guidelines on National Pension System (NPS) for employees joining the services of the Bank on
or after 01-04-2010
In view of various updations in the scheme guidelines of National Pension System (NPS) brought by PFRDA and
increase in number of employees coming under the National Pension System (NPS) bank has produced the
comprehensive guidelines on National Pension System (NPS) in this circular.
Please note that –
 Various non- Govt. organizations including Banks comes under “Corporate Sector Model” under National
Pension System (NPS)
 SPF & Gratuity Section, Head Office, is the nodal section to receive the monthly contributions from salary and
to maintain the records of the employees from whom the deductions are made and transfer the funds to NPS
Trust.
 As per the 11th BPS / 8th JN, Bank will be deducting 10% of Basic Pay and Dearness allowance from the monthly
salary towards NPS as employees’ contributions and with effect from 11/11/2020 Bank contributes 14% of
Basic Pay and Dearness allowance as employers’ contribution.
 Tax benefits: Contribution made towards Tier I account is available for Tax exemption as follows:
 Contribution up to Rs. 1.50 lakhs under Section 80 CCD (1)
 Additional deduction for investment up to Rs. 50,000 under subsection 80CCD (1B)
 Employer contribution up to 10% of Basic +DA under Section 80 CCD(2)
 There is no tax benefit on investment towards Tier II NPS Account.
57/22 Foreign Contribution (Regulation) Act 2010 (FCRA) - Receipt of foreign contribution by
Individuals/NGOs/Organizations from foreign donors
Under Section 46 of the Foreign Contribution (Regulation) Act,2010, Ministry of Home Affairs(MHA),Government
of India(GoI) has requested the Reserve Bank of India to instruct all the banks to ensure that any foreign
contribution (as defined in the FCRA,2010) flowing from the following foreign donors to any NGOs/Voluntary
organizations/associations/Person(s) in India should be brought to the notice of MHA.
 Confucius Institute Headquarter (Hanban)
 Centre for Language Education and Cooperation (CLEC)
 Chinese International Education Foundation (CIEF)
 United Front Work Department (UFWD)
 M/s Jessona Investments Limited, US (JIL)
58/22 Death claim portal for settlement of death claim applications in SAS – reiteration of guidelines
As per RBI Guidelines all death claims shall be settled in stipulated time line of 15 days, according bank has
developed a package in SAS for death claims for better monitoring.
It is being observed that still many of the branches are settling death claim manually without updating the same
in DCS portal in SAS. Hence it is hereby reiterated that all branches has to punch all death claims in DCS portal
mandatorily and abide the 15 days timeline also.
59/22 Introduction of second level authorization in GLs
To ensure adequate control on the operations of GLs, Bank implemented the functionality of Second Level
authorization in following GLs - Sundry Assets Others (GL 122422270), Sundry Liabilities Others (GL 209272430) &
Sundry Deposits Others (GL 240004160) & Branch Adjustment Accounts (BAA) Others (underlying GL 123500830),
pertaining to the functional area of Reconciliation Wing.

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Second Level Authorization Work Flow-

No. Transact Second CBS Fast Path Transactio Dr/ Cr/ Authorization Template
ion Level n Limit – Both above which Second Level
Initiatio Authorizati (Amount Authorization can be done
n at on at in ₹)
1 All Same All OLTP, Up to Both Branch in-charge (80
Branche Branch GEFU 50,000/- template) to do 2nd level
s authorization
2 All Correspondi All OLTP, > 50,000/- Both Officers at RO (user template
Branche ng RO GEFU above 80) to do 2nd level
s authorization
3 All ROs Correspondi All OLTP, >1,00,000 Both Officers at CO (user template
ng CO GEFU above 80) to do 2nd level
authorization
4 All COs Same CO All OLTP, >1,00,000 Both CO user (user template
GEFU above 80) to do 2nd level
authorization
5 HO - All Same Wing All OLTP, >1,00,000 Both HO user (user template
Wings GEFU above 80) to do 2nd level
authorization
60/22 Adoption of Canara TIMES as the new Training Management System (TMS) of the Bank
To improve the overall efficiency of the training process and automate the administration, monitoring, feedback,
MIS and evaluation of training functionalities and to leverage the latest technology for development of training
set up, our Bank has implemented Online Training Management Information System.
The system has been christened as Canara TIMES. Canara TIMES is the acronym for Canara Training Information
Management and Evaluation System.
Canara TIMES is available in SAS package and can be accessed only through Chrome browser by either selecting
the package from General Tab or else keying in the Search Box.
Henceforth all the activities related to internal trainings will be carried out only in Canara TIMES package.
61/22 Campaign for Disposal of old obsolete furniture items and destruction of old records at Branches/Offices.
Our Bank has Launched a campaign commencing from 01/02/22 to 28/02/22 for Disposal of old obsolete furniture
items and destruction of old records. Branches/Offices shall be guided by the Manual of Instructions on
Correspondence, filing, preservation, destruction of old records, E-records Maintenance and reconstruction of
accounts (updated till 31.03.2020) for destruction of old records and Manual of Instructions on Premises & Allied
Matters (updated till 31.03.2020) for disposal of old obsolete furniture items.
62/22 Pandemic covid-19 - preventive measures for safety and welfare of the employees
As per Department of Financial Services, Ministry of Finance guidelines, to deal with Covid Pandemic, bank hjas
issued following guidelines-
 Physical attendance of employees at any time shall not exceed 70% of the staff strength and remaining 30%
staff shall Work from Home.
 Circles may also consider staggered hours of work to reduce the contact and ensure business continuity plan.
 Based on the circumstances prevailing at a particular place, Circles may decide regarding providing facility of
Work from Home or staggered hours of work.
63/22 Foreign Contribution (Regulation) Act 2010 (FCRA) - Receipt of foreign contribution by
Individuals/NGOs/Organizations from foreign donors
Under Section 46 of the Foreign Contribution (Regulation) Act,2010, Ministry of Home Affairs(MHA),Government
of India(GoI) has requested the Reserve Bank of India to instruct all the banks to ensure that any foreign
contribution (as defined in the FCRA,2010) flowing from the following foreign donors to any NGOs/Voluntary
organizations/associations/Person(s) in India should be brought to the notice of MHA.
Confucius Institute Headquarter (Hanban)
Centre for Language Education and Cooperation (CLEC)
Chinese International Education Foundation (CIEF)
United Front Work Department (UFWD)
M/s Jessona Investments Limited, UK (JIL)
64/22 Issue of acknowledgement on submission of life certificate, non-employment/re-employment certificate and
non–marriage/re-marriage certificate – revised format
There have been complaints that Life Certificates submitted over the counter of Pension paying Branches are
misplaced causing delay in payment of monthly pensions. In order to alleviate the hardships faced by the
Pensioners, RBI has instructed Banks vide Circular RBI/2021-22/08 DGBA.GBD.No. S1/31.02.007/2021-22 dt.
1.4.2021 to mandatorily issue duly signed acknowledgements.
Hence now bank has revised the life certificate format which given in the annexure to this circular. Once the Life
Certificate and the other mandatory certificates are submitted by the Pensioner in these revised formats, Branch
has to issue Acknowledgement to the Pensioner in the format given in Annexure-I to this Circular duly signed and
stamped.
OR

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 Canara Institute of Bank Management, Manipal

Branch has to update the Life Certificate and authorize it in GBM Pension package on real-time basis, download
System-generated Acknowledgement and issue the same to the Pensioner duly signed and stamped. System-
generated Acknowledgement can be downloaded by following the path mentioned below:
Login into GBM Pension ==> Certificate ==> Certificate Acknowledgment Download ==> Enter PPO Unique ID ==>
Download.
65/22 Submission of life certificate by our ex-employee pensioners & their Family pensioners through VCIP (Video
Based Customer Identification Process)
Bank has recently introduced an option to update life certificate by our ex-employee pensioners & their Family
pensioners through VCIP (Video Based Customer Identification Process). After VCIP, Life certificate will be
automatically updated in HRMS. There is no charge for availing this facility. Process flow is given in this circular.
66/22 Rates of interest on rupee loans and advances (MCLR, RLLR, STRLLR, EBLR1and EBLR2) w.e.f. 07.02.2022
Latest ROIs are- MCLR (One year)- 7.25%, RLLR-6.90%, Base Rate- 8.80%, STRLLR- 4%, EBLR1- 6.80%, EBLR2- 4%
67/22 -

68/22 Acceptance of Rupay cards at ATMs and POS channels in Nepal

NPCI has entered into a Network-to-Network connectivity arrangement with Nepal SBI Bank Limited (NSBL), for
the acceptance of RuPay cards issued in India at POS terminals and ATMs in Nepal and Issuance of RuPay cards by
Nepal SBI Bank Limited (NSBL), in Nepal and acceptance of these cards at POS terminals and ATMs in India.
Service charges will be levied for card usage at ATMs in Nepal in addition to existing charges if any, applicable to
the respective category of cards: Financial Rs. 50/- + GST, Non-Financial Rs.10/- + GST
69/22 Centralisation of NRI account opening process at Ernakulam CPH
Centralisation of NRI account opening process at Ernakulam CPH for accounts canvassed at the Branches and Rep.
Offices of the Bank
 CPH Ernakulam is single point of contact for all NRI accounts activation.
 All branches including Sharjah Rep. Office for opening NRI accounts under product code SB-NRE (103) & SB-
NRO (104) mapped to CPH Ernakulam.
 Accounts opening under product code SB-NRE (103) & SB-NRO (104) is disabled at Branches.
 NRI Hub, International Operations wing HO will be overseeing authorities for all NRI accounts
Detailed guidelines with regard to the functioning of CPHs and SOP for NRI SB accounts opening is enclosed as
Annexure – I & Annexure - II to this Circular
70/22 Opening of CASA account and Demat Account of policy holders of LIC of India-for seamless completion of
upcoming mega IPO of LIC of India
The mega IPO of LIC of India will provide ample opportunity to garner more CASA accounts. The account can be
opened in Canara Galaxy (3 in 1) product so that inbuilt Demat account will serve purpose for LIC policy holder. All
the branches are advised to open maximum of CASA accounts and Demat accounts of LIC policy holders with the
help of Nodal Officers identified by your Circle to achieve targets.
71/22 Special Package under Retail Lending schemes to the employees of India’s Premier Educational Institutions /
Colleges and Central Universities coming under MoE & MoHFW and which are eligible to be financed by Higher
Education Financing Agency (HEFA) – On All India basis
Vide HO Cir. No. 657/2021 dated 04.10.2021, Bank has renewed special package to the employees of India’s
premier Educational Institutions / Colleges and Central Universities coming under MoE & MoHFW and which are
eligible to be financed by Higher Education Financing Agency (HEFA) on all India basis valid up to 30.09.2022.
However, 100% waiver in the applicable processing charges for Housing Loans, Canara Vehicle Loans (including
two wheeler) and Canara Budget Loans have been permitted which was valid up to 31.12.2021 only.
Now, the competent authority has permitted the 100% waiver in the applicable processing charges for Housing
Loans, Canara Vehicle Loans (including two wheeler) and Canara Budget Loans have been permitted with
immediate effect & which is valid up to 30.09.2022 (i.e. till validity of the package).
72/22 Insurance coverage on contents of safe deposit lockers
Insurance Coverage on contents of Safe Deposit Lockers from 1st January, 2022 to 31st December 2022 placed
with M/s National Insurance Company Ltd. Branches / Offices can download the complete Policy Document and
Claim Form from Cannet through the link as under:
http://cannetss/NEWCANNET/MarketingOfficers/03022022/Insurance%20Coverage%20on%20Contents%20of%
20SDL.pdf
Insurance Company has accepted for the following modification under deductible for Section - 1 of Safe Deposit
Locker Cover – All Risk Cover. Modified Deductibles- INR 5,000 for each locker subject to a maximum of INR 50,000
for series of losses arising from the same event.
73/22 Centralisation of CASA accounts at CPHs – Strengthening of KYC process – Handling of Undelivered Debit
cards/Cheque books-reiteration of guidelines.
CPHs to Update details of Undelivered Cheque books/Debit cards received in the respective packages as and when
received on daily basis and to ensure that NIL pendency for updation in the said packages.
74/22 PMEGP (Prime Minister’s Employment Generation Programme) - Exemption of EDP training for claiming Margin
Money/disburse the loan, till 31.03.2022
Ministry of MSME has reviewed the performance of PMEGP Scheme and based on the proposal of KVIC, the
Ministry has approved for relaxation of EDP training by the beneficiaries for claiming the margin money/disbursing
loans under PMEGP till 31.03.2022. Since EDP training is mandatory, all the beneficiaries to whom the loan has
been disbursed and released as Margin Money subsidy during the relaxation period, will have to complete the EDP
training either by offline or online mode by 30.06.2022.

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 Canara Institute of Bank Management, Manipal

75/22 Linking of loans and advances under MSME to Repo Linked Lending Rate (RLLR) – Need for strict adherence to
extant guidelines
All loans under MSME shall be linked to RLLR with effect from 01.10.2019. Also, Rates of interest in respect of the
existing working capital limits under MSME shall be linked to RLLR upon reset of pricing at the time of renewal
done on or after 01.10.2019.
76/22 Loan Guarantee Scheme for the COVID Affected Tourism Service Sector (LGSCATSS) of M/s NCGTC Ltd. –
Clarification of existing guidelines
M/s. NCGTC, vide their communication ref. 1895/NCGTC/LGSCATSS dated 02.02.2022 has clarified that such
eligible borrowers, who do not have any existing relationship with a Scheduled Commercial Bank registered with
NCGTC under the scheme, may also approach any Scheduled Commercial Bank registered with NCGTC under the
scheme, and avail benefit under the scheme.
77/22 Revision In Annual Fee For Different Variants Of Debit Cards
The competent authority has permitted for revision in annual fee for different variants of Debit Cards with effect
from 15.03.2022. Revised charges are as follows-
Class Standard- Rs. 125/-, Platinum- Rs. 250/-, Business- Rs. 300/- and Select- Rs. 1000/- per annum. These charges
are exclusive of GST.
78/22 Revision of Service Charges for POPs under NPS (All Citizen & Corporate) and Change in frequency of Asset
Allocation by NPS subscribers.
PFRDA vide Circular ref no. PFRDA/22/03/REG-POP/01 dated 31.01.2022 has revised Service charges for POPs
under NPS, which is as follows-
Modifications in service charges w.e.f. 01.02.2022 under NPS - All Citizen of India Scheme:
 Initial Subscriber registration Charges remains unchanged & is Rs. 200/- plus GST per account.
 Initial Subscription & subsequent contribution charges has been increased from 0.25% to 0.50% of the
contribution amount plus GST subject to minimum of Rs. 30/- & maximum of Rs. 25000/-
 Charges for all non-financial transaction has been increased from Rs. 20/- to Rs. 30/- plus GST per transaction.
 Persistency charges through cancellation of units (only for NPS All Citizen) modified slab wise based on annual
contribution as detailed in Annexure-I from Rs.50/- p.a. to Rs. 100/- p.a. plus GST.
 e-NPS subsequent contribution charges has been increased from 0.10% to 0.20% of the contribution amount
plus applicable GST subject to minimum of Rs. 15/- and maximum of Rs. 10000/- (w.e.f. 15th Feb 2022).
 Charges for processing of Exit/Withdrawal has been newly introduced @ 0.125% of the total corpus plus GST
with minimum of Rs. 125/- & Max Rs. 500/-

Change of pension fund and asset allocation by NPS subscriber:

Under NPS all citizen model the subscriber/employer shall have the option to change asset allocation/investment
choice four times in a financial year as compared to two times in a financial year earlier.
79/22 Indo Nepal Remittance Scheme - Limit enhancement & service charge applicability
Indo-Nepal Remittance Facility is a one way cross-border remittance scheme to transfer funds from India to Nepal
through NEFT.
 The scheme facilitates person to person remittances and also trade payments between the two countries
 The remittance facility is extended to both customers as well as non- customers of the bank.
 Celing per transection- By cash Rs. 50,000/- and by account- Rs. 2 lacs, Maximum number of remittance per
annum- By cash 12, and by account- no restriction.
 The remittance will go to State Bank of India. The State Bank of India will channelize the funds to Nepal State
Bank Ltd (NSBL).
 While initiating the NEFT in CBS 2057 option, The system is collecting the service charges, related tax and cess.
The service charge consists of 3 components- Originating Bank charge (Canara Bank), Nepal SBI Bank Limited
(NSBL) charge, State Bank of India (SBI) charge. Revised charges is given in this circular.
80/22 Gold loan - modifications in systems and procedures
Upon review, certain modifications are introduced in the existing Systems and procedures while sanctioning the
Gold Loans. The modifications are as follows-
 The ratio of Jewel appraisers in the panel at Regional Office shall be linked to the Branch network having Gold
loan exposure and shall be in the ratio of 1:10, with 1 extra Jewel Appraiser for meeting contingencies.
However, for Circles excluding circles from Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Telangana states
& Pondicherry UT the same shall be relaxed to 1:20. This relaxation is permitted till June 2022.
 The Gold Loan Application-cum-pledge letter NF 497, NF 1009 and NF 1030 have been modified incorporating
disbursement request clause.
 In case of redemption of jewellery to third party- Signature of the Letter of Authority holder shall be obtained
on a stamped receipt of the prescribed value as per format attached as Annexure II at the time of delivery of
the jewels. Along with An unstamped receipt in the NB 175 'GOLD PLEDGE/REDEMPTION REGISTER'.
 NF 1043 & 1044 is introduces for cancellation and Variation of Nomination in gold loan respectively. For every
change of Nomination, Rs. 100/-+GST has to be charged.
81/22 Publishing List of Authorized Vehicle Dealers (Four Wheeler) in CANNET
For easy access of the Branches/Offices, List of Authorized Vehicle Dealers details along with contact person Name
and contact number are made available in CANNET as per the path below:
CANNET>> Wing Details>>Wing Specific Sites>>Retail Assets Wing>>List of Authorized Vehicle Dealers
82/22 Precautions to be observed while passing cash/fund transfer cheques at Branches.

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 Canara Institute of Bank Management, Manipal

Many incident of fraud are being reported in the area of payment of cheque in cash as well as transfer of funds
through clearing/ NEFT/RTGS. Branches need to take extra precautions while passing cheques for
payment/transfer of funds to avoid occurrence of Frauds.
83/22 Renewal with need-based modifications in respect of the Scheme – “Bill discounting facility extended to:
TANGEDCO and TANTRANSCO subsidiary of TNEB Ltd. Madurai Circle for financing Suppliers/Contractors, for
supplying materials/services to M/s. Tuticorin Thermal Power Station (TTPS)
The Competent Authority has permitted renewal of the scheme, valid till 15.11.2022. The revised and updated
scheme guidelines in respect of the subject scheme are furnished as Annexure – 1 to this circular.
84/22 Pandemic covid-19 - preventive measures to contain spread of novel corona virus (covid-19)
All the employees are hereby advised that the exemptions extended vide HO Cir. No.62/22 dated 03.02.2022 is
discontinued w.e.f. 16.02.2022. However, all the employees shall continue to wear masks at all times and to follow
the Covid appropriate behavior strictly while attending the duties.
85/22 Modification in delegation of powers in respect of Gems and Jewellery Sector
The competent authority has permitted revision in DOP for Jems & Jewellery sector. For renewal- Respective
authority, for Enhancement/additional exposure- upto Normal risk account- Respective SA, for moderate Risk- ED
–CAC & Above, for fresh exposures- ED-CAC & above will be sanctioning authority.
86/22 Scheme of delegation of powers for credit sanctions - reiteration of guidelines
Branches/Sanctioning Authorities to adhere to their Delegated Powers strictly. If there is deviation due to certain
reasons, then ratification shall be sought immediately and permission on ratification request shall be conveyed as
per extent guidelines of the bank.
87/22 Guidelines for sourcing of Mutual Fund Business
As per Mutual Fund Business Policy, branches to strictly adhere following-
 Ensure that the Mutual Fund application is filled in all aspects and the related Cheque towards investment is
attached to the application. Only after ensuring this Investor’s account should be debited and Canara Robeco
pooling a/c be credited.
 While passing this entry, branch has to mandatorily capture Investor’s name, Cheque number and Investor’s
account number to enable Canara Robeco to reconcile the entry.
 The Mutual Fund application has to be handed over to Canara Robeco office / Representative on the same
day, without fail.
88/22 Concessional rate of interest for loans under Component-A of PM-KUSUM Scheme
Competent authority has approved the Concessional rate of interest for loans under Component-A of PM-KUSUM
Scheme as under-

Without Collateral Security- MCLR+2%

With collateral security#-(followings are the slab)

Collateral Security Up to 50% of loan limit-One year MCLR+1.00%
Collateral Security from above 50% to 75% of loan limit-One year MCLR+0.50%
Collateral Security from 76% to 100% of loan limit-One year MCLR+0.25%
Collateral Security More than 100% of loan limit-One year MCLR
#In addition to Hypothecation of assets created out of Bank finance & Mortgage of landed property with Post
development security value of minimum 125% of the loan amount.
89/22 -

90/22 Seeking clarifications from head office on policy matters related to credit - reiteration of guidelines
Clarifications/queries from HO to be sought under the signature of Circle Head.
91/22 Canara MSME CAP scheme – Modifications in existing ROI Guidelines (Export Credit)
Now, in view of thrust laid by the Government on boosting Exports, the Competent Authority has permitted
reduction in the applicable Rates of Interest on “Export Credit” (in INR) as Working Capital facilities considered
under the “Canara MSME CAP” scheme.
The updated scheme guidelines applicable to credit facilities granted under “Canara MSME CAP” scheme,
incorporating the revised Rates of Interest linked to Export Credit (in INR) under the scheme, is furnished in the
Annexure-1 & Delegation of Powers applicable under the subject scheme, has been furnished in Annexure-2 to
this circular.
92/22 Canara GST scheme – Modifications in existing ROI Guidelines (Export Credit)
Now, in view of prevailing market trend, the thrust laid by the Government on boosting Exports and to help our
Branches/Offices in tapping the underlying potential optimally, the Competent Authority has permitted reduction
in the applicable Rates of Interest on “Export Credit”(in INR) as Working Capital facilities considered under the
“Canara GST” scheme.

The updated scheme guidelines applicable to credit facilities granted under “Canara GST” scheme, incorporating
the revised Rates of Interest linked to Export Credit (in INR) under the scheme, is furnished in Annexure-1 to this
circular.
93/22 Selection of correct product codes for opening MSME Term loans in CBS – Need for strict adherence to extant
guidelines

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 Canara Institute of Bank Management, Manipal

Term loans of Micro, Small and Medium Enterprises shall be opened under Product Code 766 (for loans under
Manufacturing Enterprises) and 768 (for loans under Service sector enterprises including Road Transport
Operators), unless otherwise specified for a specific MSME scheme under which the Term loan is considered.
Product code 740 (for Road Transport operators) and 773 (for other Term Loans) SHALL NOT BE used for opening
MSME Term Loans.
94/22 Standard Operating Procedure (SOP)- internal office accounts in the name of corporate borrowers
RBI has issued directions to all Banks emphasizing the need for instituting proper control over opening and
operation of Internal Collection accounts of corporates. This SOP is specific to Internal Office/Collection accounts
in the name of Corporate Borrowers issued by bank in connection to RBI direction.
95/22 Review and introduction of certain service charges related to non-credit & non-forex items
This is the consolidate circular of revised service charges for non-credit and non forex items. In this circular bank
has also introduced few new charges which are as following-
Address Confirmation or Address attestation- For SB/CA/OD/OCC: Rs.50 per instance + GST
Change of Mobile Number/ E-mail/ Address- Rs.50/- per instance + GST
Request for modifying operating instructions- For SB: Rs.100 per instance + GST.
For CA/OD/OCC: Rs.250 per instance+ GST.
Any deliverable returned back- For SB/CA/OD/OCC - Rs.100 + GST
Issuance of withdrawal slips for those account holders who hold Cheque book with them- Rs.50+ GST per instance
Till automation all newly introduced charges has to be collected manually.
96/22 Linking of Aadhaar with PAN on or before 31.03.2022
As per Section 139AA of the Income Tax Act 1961, every person eligible to obtain an Aadhaar and has PAN, must
link their Aadhaar with their PAN by 31st March 2022.
To link Aadhaar with PAN: https://eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar
To avoid any customer/vendor complaints, Branch/Office to sensitize the matter and inform the customer/vendor
through various means like sending SMS, email etc.

97/22 -
98/22 Use of SFMS for sending and receiving inland letter of credit (ILC) and inland bank guarantees (BGs) reiteration
of guidelines.
For strengthening the system against frauds, the DFS has made it mandatory for Banks to use SFMS platform for
sending and receiving Inland Letters of Credit & BGs.
99/22 Revision in Interest Rates on Domestic & NRO Term Deposits w.e.f. 01.03.2022
Upward Revision in Interest Rates on Domestic and NRO Term Deposits w.e.f. 01.03.2022 in the various slabs-
For deposit less than Rs 2 crore – slab 1 to 9 ROI is @ 2.90%, 3.90%,3.95%,4.40%,5.10%,5.15%,5.20%,5.45%,5.50.
For Canara Unique of 1111 days ROI @ 5.55%
100/22 Revision in Interest Rates on NRE Term Deposits w.e.f. 01.03.2022
The Rates of interest on NRE term deposits stands downwards revised w.e.f. 01.03.2021.There is Total slabs of
interest. For slab 1– ROI is @ 5.10%, Slab-2- 5.15%, Slab 3-@ 5.20% and for Slab 4 ROI is - @ 5.45%, Slab 5- 5.50%
For Canara Unique of 1111 days ROI @ 5.55%
101/22 Revision in Interest Rate on Canara Tax Saver Deposit Scheme w.e.f. 01.03.2022
Bank has revised ROI on Tax saver deposit (for 5 years) at 5.50% from 09.08.2021. Senior Citizens are eligible for
0.5% and employees/ex-employees/ senior citizen ex-employees are eligible for 1% additional interest only.
102/22 Sovereign Gold Bond Scheme 2021-22 Series X – Issue Price
The Sovereign Gold Bond 2021-22 Series X – Open for Subscription from 28.02.2022 to 04.03.2022. Reserve Bank
of India has fixed the Issue Price at Rs. 5109/- per gram of Sovereign Gold Bond. The Issue Price of the Gold Bond
will be Rs 50/- per gram less than the nominal value to those Investors applying Online mode
103/22 Policy guidelines on handling loan applications received through “Jansamarth Portal” (also known as National
Portal)
National Portal, a unique portal has been conceptualized by the DFS, Ministry of Finance, Government of India
with the twin objectives:
1. Increasing the reach of Public in accessing Credit Linked Govt Schemes by connecting stakeholders like
beneficiaries, financial institutions, Central/State Government Agencies, & Nodal Agencies on a common
platform.
2. Streamlining the delivery process by creating a unique platform having integrated architecture vis a vis
agencies like UIDAI, CBDT, Credit Bureau etc. on the one hand and financial institutions on the other.
Now competent authority has permitted detailed policy guidelines on handling loan applications received
through “Jansamarth Portal which given in annexure to this circular.
104/22 Canara Bank Golden Jubilee Staff Welfare Fund (SWF)
Our Bank has smoothened the process of remittance of Entrance Fee for Membership of SWF. Now the entrance
Fee of Rs.25/- along with the first month deposit / contribution can be remitted from the salary of the member
employee rather than sending IBA.
105/22 Revision in Rate of Interest and additional slab for Savings Bank Deposits (Domestic / NRO / NRE) w.e.f.
01.03.2022
Rate of interest on Savings Bank Deposits revised w.e.f. 01.03.2022. Followings are the rate of interest slabs-
SN SLABS ROI (%)
1 For outstanding Balance of less than Rs. 50 Lakh 2.90

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 Canara Institute of Bank Management, Manipal

2 For outstanding Balance of Rs. 50 Lakh to less than Rs 100 Cr 2.90

3 For outstanding Balance of Rs. 100 Cr to less than Rs 300 Cr 3.05
4 For outstanding Balance of Rs. 300 Cr to less than Rs 500 Cr 3.05
5 For outstanding Balance of Rs 500 Cr to less than Rs 1000 Cr 3.35
6 For outstanding Balance of Rs 1000 Cr & above 3.50
106/22 Implementation of credit card application processing, sanction and review through loan application
processing system (laps)
Presently, Credit Card applications are submitted by Branches through SAS - Credit
Card Online Application Processing Package, Now, Bank has integrated credit card application processing,
Sanction and Review through LAPS.
This new package will facilitate reduction of time in application processing as well as
it will automate the process of credit card sanction/ review. The module is now made available to Branches/
ROs/ COs through LAPS under option “LOANS -> Credit Card”.
“Standard Operating Procedure (SOP) for Branches/ ROs/ COs” for processing, sanction & review of credit card
through LAPS is given in annexure 1 of this circular.
107/22 New Short Term Loan Scheme For Financing Against Electronic Negotiable Warehouse Receipts (e-NWR) of
agriculture commodities
Warehouse Receipt financing is a commodity-based funding against Electronic Negotiable Warehouse receipts
(e-NWR). Warehousing Development & Regulatory Authority (WDRA), Department of Food and Public
Distribution, Government of India, regulates and develops electronic system of holding and transfer of credit
balances of fungible goods deposited in the Warehouse, by licensing two Repositories namely, M/s National E-
Repository Limited (NeRL) and CDSL Commodity Repository Limited (CCRL). All the registered warehouses of
WDRA are on boarded to Repository System for issuing e-NWR against the deposit of Commodities, Our bank is
having MoU with both the repository.
Since Our Bank’s Scheme under MSME Segment for funding against Warehouse receipts by name “Negotiable
Warehouse Receipt Finance” with the maximum limit of Rs.5.00 Crores has already expired on 04.02.2021.
Hence now bank has introduced need based financing to cover all types of Borrowers viz. MSME/Non-MSME
against Electronic Negotiable Warehouse receipts (e-NWR) for a maximum period of 12 month.
Detailed scheme guidelines are given in annexure 1 of this circular.
108/22 Rates of interest on rupee loans and advances (MCLR, RLLR, STRLLR, EBLR1and EBLR2) w.e.f. 07.03.2022
Latest ROIs are- MCLR (One year)- 7.25%, RLLR-6.90%, Base Rate- 8.80%, STRLLR- 4%, EBLR1- 6.95%, EBLR2- 4%
109/22 Stopping the sanction of repayable / non-repayable withdrawals from 23/03/22 to 06/04/22
Members are requested to note that in view of interest declaration work, there will be no sanctions of repayable
withdrawals (RPWDL) and non-repayable withdrawals (NRW) from 23/03/22 to 06/04/22. Hence, members may
plan their withdrawals (RPWDL & NRW) well in advance.
 Staff members who had availed repayable withdrawals in the month of March 2021 and who wish to renew
the repayable withdrawals availed earlier are requested to apply for renewal on or before 23/03/22.
 The employees wish to close their repayable withdrawal account are requested to send the amount by way
of IBA drawn on DP 0404, Cantonment Branch, Bengaluru on or before 23/03/22.
110/22 Payment of Portfolio/service charges of MSE accounts sourced by Fin-Tech Companies under Tie-Up
arrangement for loan origination up to Rs.10 Lakhs through Income/Expenditure GLs
The Portfolio/Service charges for MSE proposal sourced by Fin-Tech Companies viz. M/s Atyati Technologies Pvt
Ltd & M/s SUB K Impact Solutions Ltd. will now be paid through new Income & Expenditure General Ledgers of
Branches opened exclusively for this purpose.
The charges will be collected and paid to the companies centrally by Head Office, MSME Wing as is being hitherto
done, by routing the transactions through the Income & Expenditure GLs of respective branches.
Branches shall not pass any entries in this regard and also shall not use these GLs for any other purpose.
111/22 Revised Definition of Micro, Small and Medium Enterprises – Additional guidelines
 The existing Entrepreneurs Memorandum (EM) Part II and Udyog Aadhar Memorandum (UAMs) of the
MSMEs obtained till June 30, 2020 shall remain valid upto March 31, 2022.
 Validity of documents obtained in terms of O.M. No.12(4)/ 2017-SME dated March 8, 2017 (RBI Circular
FIDD.MSME & NFS.BC.No.10/06.02.31/2017- 18 dated July 13, 2017), for classification of MSMEs upto June
30, 2020, are also valid upto March 31, 2022.
 Branches/Offices shall ensure obtention and updation of ‘Udyam Registration Certificate’ details in CBS
(under CIM22 option) in respect of all eligible MSMEs and also incorporate such details in the ‘Common
Appraisal Memorandum’ while appraising renewal and/or fresh/additional exposure proposals of MSMEs,
well within the stipulated timelines.
112/22 Implementation of quarter’s management system (QMS) to Handle quarters allotment & related matters.
To have proper control & monitoring and to bring more transparency in the entire process, Bank has introduced
an online platform ‘Quarter Management Package (QMS). QMS is accessible to all the eligible Officers of the
Bank. The system offers an effective mechanism to apply for Bank Owned/Bank Leased/Personal Leased quarters
online and for processing the same by concerned Sections at RO/CO/HO.
Further, the quarter’s data will be available for ready reference in real time to the concerned Sections for proper
monitoring and effective management of the quarters.
The package can be accessed through the following path: SAS>>General>>Quarter Management System
113/22 -
114/22 Annual encashment of privilege leave-functional guidelines

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 Canara Institute of Bank Management, Manipal

For payment of Annual PL Encashment of 5/7 days, certain modifications are made in the HRMS package for the
benefit of employees.
 Once the application for annual PL encashment of 5/7 days is applied by the employee and approved in
HRMS package, the notional amount will be calculated and credited to the employees account through STP
on the same day. Notional amount includes Basic pay, stagnation increment, FPP along with frozen DA,
Graduation Pay, Special Allowance, Learning Allowance, Special Pay, Dearness Allowance and Transport
Allowance.
 Later the same will be accounted in the salary of the month in which payment is done through STP and
differential payment/recovery, if any, will be effected along with the salary.
 Once the Annual PL encashment is approved in the module, there is no option to reverse it.
115/22 List of Chartered Accountants/Auditor Firms empanelled as Forensic Auditors during the
quarter ending December 2021 is furnished in Annexure
List of Chartered Accountants/Auditor Firms empanelled as Forensic Auditors during the quarter ending
December 2021 is furnished in Annexure to this circular. Branches / Offices are requested to verify the IBA list
before entrusting cases to Forensic Auditors for any changes in their empanelment.
116/22 Foreign Contribution (Regulation) Act 2010 (FCRA) - Receipt of foreign contribution by
Individuals/NGOs/Organizations from foreign donors
Under Section 46 of the Foreign Contribution (Regulation) Act,2010, Ministry of Home
Affairs(MHA),Government of India(GoI) has requested the Reserve Bank of India to instruct all the banks to
ensure that any foreign contribution (as defined in the FCRA,2010) flowing from the following foreign donors to
any NGOs/Voluntary organizations/associations/Person(s) in India should be brought to the notice of MHA-
Share Mercy, Norway
Share Mission Network, Norway
Glocal, Norway
Glocal Aid, Norway
Global United States, Norway
Kuwait Town Malayalee Christian Congregation (KTMCC), UAE
Revival Prayer Fellowship Ministries
Avina Estrocio, UK
Philip John, UAE
KTMCC, UAE
117/22 RBI Master circular on bank finance to Non-Banking Financial Companies (NBFCS)
RBI has issued Master Circular on Bank Finance to Non-Banking Financial Companies (NBFCs) vide notification
ref DOR.CRE.REC.No.77/21.04.172/2021-22 dated 05.01.2022 The following are the modifications as per the
above RBI Master Circular-
 NBFCs' means the Non-Banking Financial Companies registered with the Reserve Bank of India, which shall
also include Housing Finance Company (HFC) registered under Section 29 A of the National Housing Bank
Act, 1987.
 The Residuary Non-Banking Companies (RNBCs) has been removed by RBI from the master circular on
financing NBFCs. Accordingly; Residuary Non- Banking Companies (RNBCs) shall not be eligible for Bank
finance.
 Banks are permitted to provide partial credit enhancement (PCE) to bonds issued by NBFC-ND-SIs and
Housing Finance Companies (HFCs) as per guidelines contained at para 2.4 of the Master Circular on
Guarantees and co-acceptances dated November 09, 2021, as updated from time to time.
 Banks shall adhere to the intra-group limits in accordance with Guidelines on Management of Intra-Group
Transactions and Exposures as per RBI notification dated 11.02.2014.
118/22 Clarification under unsecured personal loan under STP (in digital lending platform) guidelines
 Relaxations and concessions permitted under various Special Packages under Canara Budget Scheme can be
extended to “Unsecured Personal Loan under STP”, if customer is otherwise eligible.
 Customers who have availed “Unsecured Personal Loan under STP” upto Rs 1.00 Lakh in DLP & are eligible
for higher quantum under general Canara Budget Scheme (or Special Packages permitted under Canara
Budget), can avail differential eligible loan amount by paying applicable differential processing charges, duly
reckoning both the loans as single loan.
 Modified Digital Verification Charges: Rs 100/- + GST (18%)
 E-Stamping and E-signing charges: Rs 200/- e-stamping charges & Rs 8.26 {Rs 7/- + Rs 1.26 (GST)} e-signing
charges
119/22 Additional/Modified Guidelines related to Timeline for completion of EMT- Housing Loan
As per existing guidelines for Flats under construction: Maximum Repayment Holiday of 36 months where
tripartite agreement has been executed for completion of flats. EMT can be put through only after execution of
sale deed. In such cases the next higher authority upto GM-HO-CAC can permit extension of the time period of
six months from date of Sale deed for putting through the EMT. After completion of permitted extension of time
period for creation of EMT (including 6 months’ time extended by GM-HO-CAC), penalty at 2% p.a
on the sanctioned amount till completion of EMT shall be levied.
Now as per additional guidelines issued now-
 For delay in construction of projects: Wherever EMT is not put through for delay in construction of project
(as per the agreed time line) and RERA has approved for extension of time line for completion of project. In

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 Canara Institute of Bank Management, Manipal

such cases the extended time line can be accepted where EMI is paid regularly (after completion of
repayment holiday) & TPA is executed:
Time line for creation of EMT can be extended up to RERA extended period. No penal interest is to be levied.
Repayment holiday period will not be extended beyond the sanction norms.
 In other cases viz., a. Wherever, borrower is not creating EMT, even lapse of 6 months from the date of
execution of Sale Deed. b. EMI is paid regularly but Sale Deed is not executed even after getting physical
possession, occupancy certificate. c. Stalled projects which are approved under RERA & Pre-RERA regime
projects
In the above cases, penalty at 2% p.a. on the sanctioned amount till completion of EMT shall be levied.
120/22 Framework for Financing Startup and Establishment of a “START-UP CELL” at each Circle
The ecosystem of start-ups has been developing in a significantly fast pace and India has emerged as the third
largest start-up ecosystem in the world, Hence bank has taken initiative to create thrust on startup business,
every circle has to establish one exclusive startup cell.
 One start-up cell shall be opened in each Circle and to be housed in CO Premises.
 DGM/AGM (in absence of DGM) in-charge of MSME Section of the Circle Office is nominated as the In-charge
of the respective Start-Up Cell, additionally.
 MSME Section-in-charge of the respective Circle Office shall handle the StartUp proposals routed to the
Circles (additionally).
 Marketing Officer in the Circle shall also be an incumbent of the proposed Start-Up cell (additionally) and
shall assist in canvassing Start-Up proposals.
 Credit facilities to the Start-Ups may be considered in terms of existing MSME lending guidelines/ MSME
schematic lending norms.
 Standard Operating Procedure for processing startup proposals shall be same as processing MSME Proposals
handled by MSME Sulabh as mentioned in Annexure IV of circular 466/2021 dated 30.06.2021.
 Delegation of Powers for sanctioning, except branch sanctioning power, the Start-Up proposals shall be as
per extant guidelines for sanctioning MSME Loans as per HO Cir. 678/2021 dated 13.10.2021 and 466/2021
dated 30.06.2021
 Branches are not empowered to sanction any startup proposal. Proposals coming under branch power shall
be routed to MSME Sulabh.
 Loans to Start-up entities shall be capped upto Rs.50 crores only.
 Department for Promotion of Industry and Internal Trade (DPIIT) Certificate recognizing an entity as a
Startup to be obtained for classifying as Start-up.
 Roles and Responsibilities of HO, Startup Cell, RO, MSME Sulabh, Branches and MO.
121/22 Guidelines of Overdraft Facility under PMJDY to individual verified women SHG members.
In existing PMJDY OD Scheme, there is no condition attached for sanctioning OD up to the limit of Rs.2000/-,
whereas in the proposed revised PMJDY OD Scheme, there will be no condition attached for sanctioning OD
upto the limit of Rs.2000/- for general customers and Rs.5000/- for verified women SHG members.
122/22 Employees Suggestion Scheme – a new Portal introduced through DMS under SAS package.
The existing Employees Suggestion Scheme in HRMS package will be available in SAS package with new
functionalities under DMS platform w.e.f. 01.04.2022.
 Suggestion entered by individual employee will be processing by O&M section, SP&D Wing, HO on daily
basis.
 O&M Section officials have to claim the file from Received Queue under ESS.
 O&M Section either to forward the suggestion to respective user wing for Feasibility study or they can reject
the suggestions
 If the suggestion found feasible, O&M section will place the Feasible Suggestions to ESS Screening
Committee for Approval.
 Once the committee approves the suggestion, O&M Section has to send a letter for implementation to the
User Wing and also a letter to the concerned HRM section / HOSA, HO for awarding the staff suitably.
 Certificate will be issued to the concerned employee and same can be downloaded through DMS only.
123/22 Processing and Sanctioning of MSME Loans in Lending Automation Processing System (LAPS) and Functioning
of MSME Sulabhs in revamped model – Reiteration of guidelines.
Branches/Offices to process all MSME loans (Fresh, Renewal and Enhancement) through LAPS module only.
Branches to handle the “Application” part in LAPS module and forward the same to MSME Sulabh along with
duly filled in application and relevant documents as per the checklist.
Branches/Offices shall strictly follow the extant guidelines of MSME Sulabh.
124/22 Launch of “Canara Ananya” - New SB Product for opening accounts of SC Beneficiaries under Dalit Bandhu
Scheme ( For Telangana State only).
The Government of Telangana has formulated a new welfare scheme for the SC community of the state. The
scheme is christened as Dalit Bandhu Scheme wherein beneficiaries will be provided with grant of Rs. 10,00,000/-
(Rupees Ten lakhs only) towards establishment of viable income generating unit (without any bank linkage or
loan component). The Telangana Government intends to open special beneficiary accounts, so that the grant
amount may be directly credited to the beneficiary Savings Account.
 A new Savings Bank product christened as Canara Ananya (141) is introduced, to extend the Banking Facility
aligning with for the beneficiaries of “Dalit Bandhu Scheme” of Telangana state only.
 Minimum Balance maintenance is waived.
 All type of Service Charges waived.

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 Canara Institute of Bank Management, Manipal

 Withdrawals / transactions should be through Bank induced forms only.

 Debit Card, Cheque Book, Mobile Banking and Internet Banking facilities unavailable.
 Account Opening permitted only at CPH Vijayawada for Telangana branches only
125/22 Linking of CASA with PPF / SSY Accounts in SAS Package for Online facilities
Due to non updation of CASA in PPF/SSY accounts, customers are not able to access their PPF/SSY accounts
online through Internet/Mobile Banking (IMB) facility and not able remit the subscription amount through online
mode.
To mitigate this issue, Branches should update the CASA number of the customer in PPF/SSY package manually.
List of PPF/SSY accounts pending for updation of CASA account is made available in CANNET – Branch
Wise/RO/CO wise.
CANNET>> GOVT. BUSINESS>>PPF/SSY>> PENDING CASA LINKING STATUS
Since the financial year end is fast approaching, more number of PPF/SSY subscribers opts for online mode of
subscription remittance under these Tax savings schemes to claim tax rebate.
Branches to update CASA in SAS - PPF/SSY package by downloading the list from CANNET. Updation to be
authorised on the same day.
126/22 Clean overdraft / DPN facility to employees – extension of timelines
Now Bank has extended the Timelines from 01.04.2022 to 31.03.2023 in respect of Clean OD limit of e-Syndicate
Bank Employees to align with Canara Bank Clean OD / DPN Limits.
Prior clearance to be obtained from delegated authority to extend timelines for conversion from Clean OD to
DPN limit to e-Syndicate Bank employees upto 31.03.2023.
127/22 Providing brief case/ leather bag/ office bag to officer employees
The guidelines of HO Cir 720/2016 are reiterated for the benefit of all Branches/Offices.
 All the Confirmed Officers in JMG Scale I to MMG Scale III are eligible for the scheme w.e.f. 01.12.2016
 All the eligible officers may purchase a Briefcase /Leather Bag/ Office Bag of their choice and claim
reimbursement from the Bank once in five years.
 The reimbursement of expenses shall be payable on submission of claim accompanied by Bill as a proof of
purchase subject to following rates:-
o Confirmed Officers in JMG Scale I - Rs.1500/-
o Confirmed Officers MMG Scale II & III - Rs.2000/-
 The reimbursement shall be restricted to actual cost of the Bag or maximum ceiling specified above
whichever is lower.
128/22 Absence of employees during strike/ agitation etc.
1. If there is a call for strike given by any Union of Bank employees and an employee remains absent on the
strike day, he shall be deemed to be on strike and his wages for the day shall not be paid on the principle of
‘No Work No Pay’ in addition to any action the bank may like to take as per the Service Rules.
2. If on the day of the strike, a particular office of a bank remains unopened, the absence of the employees
who were on strike shall be regularized by allowing appropriate leave due to the employees subject to
fulfilment of the following conditions:
 If the employee is a member of the Union which has given a call for strike, he shall advice the bank in
writing before the strike day that although he is a member of the Union which has given a call for strike,
he has no intention to go on strike.
 A letter by the employee, even if he is covered by (i) above stating that he was not on strike and he had
come to attend the office in the usual manner but could not do so as all the doors were locked.
 If it is established that even one or two employees were able to enter the office and the doors were
opened any time before the close of business hours, leave shall not be given to those who did not enter
the office.
All branches / offices are requested to take note of the above and comply with the instructions.
129/22 Abroad visit of employees by availing leave
 All employees who wish to go abroad on personal visit shall necessarily obtain prior permission from the
Competent Authority irrespective of their period of stay, informing the details as may be required by the
Bank.
 If the employee does not return back and resume duty on expiry of sanctioned leave, it will be construed
that the employee has no intention of rejoining duties and hence as having voluntarily abandoned the
services of the Bank.
 While permitting him/her to go abroad / granting him/her leave for the purpose, the Competent Authority
has to satisfy himself about the arrangements made by the employee for payment of instalments /clearing
of liabilities outstanding in his/her name as undertaken by him/her while seeking permission.
 The competent authority to permit the same is –
For Workmen and Officer employees upto MMG Scale III – CGM/GM/DGM of Circle, and for HO Staff-
CGM/GM HR Wing
For SMG Scale IV, SMG Scale V and TEG Scale VI- CGM/GM, HR Wing, HO through PM Section, HO, Bengaluru
For TEG Scale VII & TEG Scale VIII - Executive Director overseeing HR Wing through PM Section, HO,
Bengaluru
130/22 Taking up assignment outside the scope of regular bank duties –guidelines Regarding remuneration received
on such assignment

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 Canara Institute of Bank Management, Manipal

Few of our employees may be inclined to participate in activities like- Writing books, Acting in feature films/on
stage, Contributing articles/giving talks/lectures relating to Banking and other subjects in newspapers /
magazines. Appearing on TV/Radio as commentators, experts, musicians, dancers, etc.
 Prior approval shall be sought for by the concerned employee from the competent authority in all such cases.
 No employee shall in any radio broadcast/TV telecast or in any published document or communication to
the press or in public utterance make any statement which has the effect of disparaging the Bank or its
management bringing the same into disrepute.
 If the remuneration from the outside assignment taken during office hours is less than Rs.4000/- p.a., no
amount need be remitted to the bank. If the income from such assignment per annum is more than
Rs.4000/-, 1/3 amount beyond Rs.4000/- has to be reimbursed to the bank. Further, the amount received
beyond Rs.10,000/- per year is to be reimbursed to the bank in full.
 Total exemption from reimbursement of remuneration received is made in the following cases and nothing
need be reimbursed to the Bank.
o Assignment/work pertaining to Banking Profession for which specific request has been made by the
employees for taking up such assignment/work.
o Assignments accepted in relation to Banks, like invigilation work at JAIIB/CAIIB examinations or
correction of papers thereof.
o Contributing articles and doing work of a literary/artistic nature as long as such work does not come in
way of discharging one’s duties in the Bank
131/22 Balance Sheet as at 31.03.2022
The guidelines for preparation of Balance Sheet and Prudential Norms on Income Recognition, Asset
Classification and Provisioning for the Balance Sheet as at 31.03.2022 is furnished in this Circular.
132/22 Call letter for promotion interview
Now, as part of digital initiative and to make the process paperless, downloading call letters for promotion
interviews is enabled as under:
HRMS→ Self Service→ Promotion Interview Call Letter
Henceforth, no physical copies will be dispatched to the candidates who are appearing for the promotion
interview.
133/22 Integration of DDE services (Digital Document Execution) of m/s NSEL in LAPS module, enabling e-signing and
e-stamping of loan documents
Union Minister for Finance & Corporate Affairs unveiled EASE 4.0, PSB Reforms -Banks need to put in place
automated electronic / digital systems for enabling e-Signing and e-Stamping of documents.
M/s National e-Governance Services Limited (NeSL), which is an Information Utility (IU) mandated to serve as a
repository of legal evidence for financial credit contracts, has set up a secured Digital Document Execution (DDE)
platform, facilitates e-Signing (through services of CDAC – Centre for Development of Advanced Computing) and
digital e-Stamping (through technology integration with SHCIL – Stock Holding Corporation of India Limited) of
loan documents.

The charges for utilizing the DDE services for Individuals is as follows:
DDE Fee- Rs 25/-, Anniversary Fee-Nil, Tenure Fee-Loan Tenure upto 3 years-Nil, Loan Tenure greater than 3
years-Rs 10/- for each year above 3 years
E-Stamping-ACTUAL STAMPING AMOUNT (No GST on Stamping Amount), E-Stamp Certificate Fee-Rs 7/- per
each document e-stamped, E-Signing – First Signatory-Nil
E-Signing – Second Signatory onwards-Rs 5/- per SIGNATORY

The Standard Operating Procedure (SOP) for using the DDE Services is attached as per ANNEXURE – I of this
circular.
134/22 Repo Linked Lending Rate (RLLR) for Overdraft Facility under PMJDY
 New PMJDY overdraft facility shall be linked to RLLR (REPO Linked Lending Rate) with immediate effect to
comply with RBI Notification DBR.DIR.BC.No.14/13.03.00/2019-20.
 Existing PMJDY Overdraft borrower shall switch to RLLR on renewal by submitting consent Link letter as per
Annexure I to this circular
 Accordingly applicable Rate of Interest on all existing and future PMJDY OD facility (Including PMJDY OD to
verified women SHG Member) will be- RLLR +3.35 % subject to maximum of MCLR+3%
135/22 -
136/22 Group Personal Accident Insurance Policy For Employees

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 Canara Institute of Bank Management, Manipal

The Group Personal Accident Insurance Policy for employees under Staff Welfare Measures Scheme has been
renewed with sum assured with each cadre for a further period of one year from 01.01.2022 to 31.12.2022 with
M/s. Reliance General Insurance Company Limited.
Insurance cover available for Death & Temporary/Partial/Total disability (Amount in Rs.)
Category Sum Assured for death
Subordinate cadre 3,50,000/-
Clerks/Special Assistants 5,00,000/-
Officers in Scale I 6,50,000/-
Officers in Scale II 8,50,000/-
Officers in Scale III 10,50,000/-
Executives in Scale IV 12,00,000/-
Executives in Scale V 14,50,000/-
Executives in Scale-VI 17,00,000/-
Executives in Scale VII 22,00,000/-
Executives in Scale-VIII 22,00,000/-
Temporary/Partial/Total Disability is covered as per standard policy terms and conditions.
137/22 Group Term Life Insurance Policy For All Permanent Employees Of The Bank
Our Bank has renewed Group Term Life Insurance Policy covering all permanent employees of the Bank including
Probationary Employees for the policy period 01.02.2022 to 31.01.2023 from M/s Bajaj Allianz Life Insurance Co.
Ltd. Details of cadre-wise sum assured under the Policy is as under:
Category Sum Assured
Subordinate cadre 20 months gross salary subject to a minimum of Rs. 10.00 lakhs
Clerical Cadre 20 months gross salary subject to a minimum of Rs. 15.00 lakhs
Officers Cadre 20 months gross salary subject to a minimum of Rs. 20.00 lakhs
For arriving at Sum Assured, December 2021 month’s Gross Salary has been frozen for each employee.
138/22 Nomination of part time non official director
Shri Dibakar Prasad Harichandan has been nominated by Government of India as part-time
non-official Director for a period of 3 year on the Board of our Bank with effect from 21.03.2022.
139/22 Reporting and Accounting of Central Government Transactions of March 2022
As per RBI notification, the Government of India has decided that the date of closure of Residual Transactions
for the month of March 2022 be fixed as April 11th, 2022 for the Financial Year 2021-22.
 Deal(Receiving) Branches to ensure that all collections and payments made on behalf of Central Government
towards the end of March 2022 are accounted for in the same financial year i.e., before 31st March 2022.
 Deal branches/Focal Point Branches/ Nodal Branches/ Govt. Link Cell, Nagpur to report March 2022 Residual
Transactions up to 11th April, 2022.
 Deal branches to ensure dispatch of physical challans/scrolls/IBA immediately.
 Branches/Accounts Sections should participate in special clearing organized by Reserve Bank of India/SBI
etc. on the last working day of the financial year especially to clear the cheques deposited towards payment
of taxes/ Other Govt. Revenues.
 The Statement of March (Residual) Transactions should be sent by all Focal Point Branches to Zonal Accounts
Officers/Pay and Accounts Officers latest by April 18th, 2022.
140/22 PMEGP (Prime Minister’s Employment Generation Programme) – Adhering to time norms for claiming
subsidy, creation of Term Deposit and updation of Term Deposit details in KVIC’s PMEGP Portal – Reiteration
of guidelines.
Branches/Office shall follow the time norms for sanction, disbursement of loan, subsidy Claim. Further opening
of term deposit followed by updation of the TDR details in PMEGP Portal shall be completed within 24 hours of
receipt of margin money.
141/22 DAF-SDSM Credit Guarantee Scheme for Subordinate Debt (CGSSD), launched by CGTMSE – extension of
scheme validity till March 31, 2023.
The Scheme would be applicable to all credit facilities sanctioned under CGSSD for a
maximum period of 10 years from the guarantee availment date or March 31, 2023 whichever is earlier, or till
an amount of Rs 20,000 crore of guarantee amount is approved.
The sub-debt facility shall have a maximum tenor of 10 years from the guarantee availment
date or March 31, 2023, whichever is earlier.
142/22 -
143/22 Job Rotation
The system of Job Rotation prevalent in our Bank aims at achieving all-round knowledge enhancement of
employees specially in today’s One Stop Super market sort of banking industry environment.
Job Rotation is compulsory, for both branches/ administrative units, upto Scale II. Branch in charge, depending
on the size of the branch and the business volume shall effect job rotation once in every 6 months or in lenient
way maximum in 12 month.
The overseeing Executives, during their branch visits and Interface sessions, have to verify and confirm that it is
effected regularly in branches.
144/22 Modification In the number of Credit Information Reports For Gold Loan Schemes

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 Canara Institute of Bank Management, Manipal

The guidelines for drawing Credit Information Reports for Gold Loan Schemes is modified, now Only one Credit
Information Report is required to be drawn from any of the Credit Information Companies (CICs), irrespective of
quantum of loan.
145/22 Mandatory seeding of Aadhar number to KCC accounts for crediting interest subvention
AADHAR number seeding in KCC accounts is mandatory for crediting Interest Subvention and Prompt Repayment
Incentive. Hence, Branches / Offices are advised to take note of the above and ensure 100% aadhar seeding in
all KCC accounts.
146/22 Policy for Appropriation of Recovery in NPA Accounts – Comprehensive Guidelines
This is a comprehensive Circular in the matter of matter of appropriation of recovery in NPA accounts. These
guidelines shall supersede the earlier Circular 805/2021.
Branches to note that Manual intervention for Change of Sequence in NPA accounts under options LNM 35 /
ALM 35 for term loans or change of Plan Code in AC 001 screen for CASA/OD/OCC accounts in FCR is dispensed
with from immediate effect.
147/22 Loan recovery policy 2022-23
Board approved recovery policy for FY 2022-23 is given in this circular. For modification / changes in existing
policy branches /RO/CO can refer annexure 2 of this circular.
148/22 Special One Time Settlement Scheme (OTS) for NPAs under Agriculture with sanctioned limits/combined limits
upto Rs.25 Lacs
 All NPA accounts under Agriculture loans and advances with limits / combined limits sanctioned on or before
31.3.2016, upto Rs. 25 Lacs are eligible under the scheme.
 The scheme will not cover Gold Loans, ALVSLs, Tractor loans and agriculture accounts which are secured by
immovable/movable security (like House/ Flat / residential site, tractors, tillers, etc), which are eligible under
SARFAESI ACT and securities like deposits, Insurance Policies, KVPs, NSCs, etc.
 The Scheme shall be effective from 01.04.2022 till 31.03.2023.
 The scheme is applicable for all agricultural farmers i.e., individual, joint, HUF, Partnership Firms, Companies
and other entities.
 In case of accounts with Holiday period or moratorium period, the account should have been sanctioned
before 31.03.2016 and the repayment holiday should have been completed before 31.03.2017 i.e. first
instalment should have fallen due on or before 31.03.2017.
 Settlement formula
Sl Conditions Settlement Formula
No
1 a)Borrowers having aggregate 25% of Book Liability as on date of settlement
sanctioned limit upto Rs 10 lacs:
b) Out of 1 (a), where the borrower is 15% of Book Liability as on date of settlement
dead:
2 a)Borrowers having aggregate 30% of Book Liability as on date of settlement
sanctioned limit above Rs.10 lacs and
up to Rs.25 lacs
b) Out of 2 (a), where the borrower is 20% of Book Liability as on date of settlement
dead:

Branches to contact all eligible agricultural borrowers and pursue them for settlement of their accounts under
the above scheme and take full advantage of the concessions permitted under the scheme and recover
maximum amount so as to improve the asset quality of the Bank.
149/22 Special Scheme for Settlement of NPAs in Micro, Small and Medium Enterprises (MSME) Sector with Book
liability of Rs.200.00 lacs and below
 The Scheme will cover NPAs classified as Doubtful & Loss assets in MSME sector, as on 31.03.2022 with book
liability of Rs. 200.00 lacs and below as on the date of settlement.
 The Scheme will also cover NPAs classified as Sub-Standard under Micro and Small Enterprises (MSE) Sector
as on 30.09.2021 with book liability of Rs. 200.00 lacs and below as on the date of settlement, categorized
as “SICK/NON-VIABLE” for restructuring or rehabilitation.
 The Scheme will cover all eligible accounts where action has been initiated under SARFAESI Act, cases
pending before Courts/DRTs subject to obtaining consent decree in such cases and also decreed accounts.
 The scheme shall be in force from 01.04.2022 till 31.03.2023.
150/22 Special OTS scheme for settlement of small value NPAs upto Rs.25 lakhs
This OTS scheme covers-
o Small value NPAs with book liability upto Rs.25 lakh.
o NPAs under education loan with sanctioned limit upto rs.7.50 lakhs.
o NPAs under tractor & other farm mechanization loans with original loan amount upto Rs.10 lakhs.
The scheme is extended from 01.04.2022 till 31.03.2023
151/22 Standard operating procedure (SOP) for bypassing Biometric Login authentication for accessing to CBS/Non-
CBS applications
“User/Branch Bypass” option can be used for bypassing Biometric Login for accessing CBS/Non CBS applications
only under the following circumstances:-
o No Biometric device is available in the Branch/Office
o All the devices in the Branch/Office are faulty

परिपत्र साि: Gist of Circulars 19

 Canara Institute of Bank Management, Manipal

o Medical circumstances owing to which fingerprint image cannot be captured

The Biometric bypass option shall rest with ITAM Group, DIT wing now (earlier with TM section, CO) and shall
be exercised at specific request of the Circles.
152/22 Trading in our Bank’s Share-"Canara Bank Code of Conduct for Prohibition of Insider Trading".
“Canara Bank Code of Conduct for Prohibition of Insider Trading” for the year 2022-23 has been reviewed and
approved by the Board of Directors of the bank. The revised guidelines will be effective from 01.04.2022 is
annexed to this Circular and will supersede the earlier Circular.
153/22 Financial inclusion - continuation of Aadhar Seva Kendra services - Opex model (ASK kits and manpower
outsourced)
 Existing agreement with Service Providers for ASKs with Canara I vendor viz. M/s CCSL and Canara II vendors
M/s Shreedatta Industries, M/s Zephyr Ltd, M/s Comtech Info Solutions Pvt Ltd, M/s ITI Ltd, M/s Orion
Security Solutions Pvt Ltd, M/s SNR eDatas Pvt Ltd is expiring on 31.03.2022.
 Bank has floated new RFP for providing ASK services to Canara I & II ASK locations and have selected &
entered into Service Level Agreement with Four Corporate Service Providers viz M/s Zephyr Ltd, M/s Orion
Security Solutions Pvt Ltd, M/s Comtech Info Solutions Pvt Ltd, & M/s Asuja Eserv Pvt Ltd for a period of 3
years w.e.f., 01.04.2022.
 From 01.04.2022, all newly identified ASK branches of Canara I &II will function under OPEX Model.
 Under OPEX Model, Supply of ASK kits, their maintenance and Manpower is the Sole responsibility of
Corporate Vendors.
 All payments pertaining to ASKs will be effected centrally at our end. No amount shall be payable by
Branches/ROs/COs.
154/22 Standard Operating Procedures on Safe Deposit Lockers
Based on revised instructions of RBI, Bank has adopted a policy on Safe Deposit Lockers & Safe Custody Services
facility provided by the Banks. Vide HO Cir 844/2021 dated 31.12.2021, standard operating procedures (SOPs)
on various aspects of lockers viz. Hiring of lockers, locker operations by locker hirers etc have been made
available to the Branches/ Offices. Now bank has issued updated guidelines on hiring, operation and break open
of locker in subject circular which is annexed in this circular.
155/22 Generation of Mandatory Reports –Loans sanctioned and disbursed for the day.
Now, MIS Wing has developed 2 new Reports i.e. “Loans sanctioned for the day and Loans disbursed for the
day” as part of Mandatory Reports List to the Branch /RO/Circle users. Branches/ROs/Circles shall mandatorily
take the printouts and verify the same under the signature of the Branch/RO/Circle Heads.
156/22 Payment Gateway Policy 2022-2023
The Payment Gateway Policy for the year 2022-2023 has been approved and adopted by the Sub-Committee of
the Board – Information Technology on 09.03.2022.New Policy will be effective from 01.04.2022.
Important Changes/ Additions:
 In respect of High Risk Merchants, the condition of satisfactory dealing with our Bank for minimum one year
is mandatory and can be relaxed by the Circle Head and recommend for Payment Gateway facility.
 The following authorities are empowered to extend concession to our high valued customers (Merchants)
by absorbing the entire/partial Payment Gateway/ Canara Easy Fee charges by the Bank on behalf of the
Merchant, based on the recommendations by the Circle Offices, on arriving Cost Benefit Analysis (CBA) per
annum:
Sanctioning Authority Concession involved per annum (Rs.)
Wing Head, DBS Wing Upto Rs.5.00 Lacs
Executive Director Above Rs.5.00 Lacs
 With regard to transaction reconciliation, settlement, disputes and refunds, the policy guidelines issued by
Reconciliation Wing may be referred.
 Wing Head, DBS Wing is empowered to permit renewal/extension of Payment Gateway/ Canara Easy Fee
facility to the Customers (Merchants) on concession basis where the facility is already sanctioned by the
Executive Director based on the recommendations by the Circle with Cost Benefit Analysis (CBA).
157/22 Implementation of Professional Dress Code in the Bank
Banking being a service industry, our employees are considered as the face or ‘Brand Ambassadors’ of the Bank.
As such, the appearance and conduct of the employees will have a great impact on the image of any service
industry. Dressing decently is essential in the Bank as we need to present in such a way that the customer sees
the employee as a capable and a responsible individual.
For the benefit of staff members the guidelines are reiterated as under:-
 Staff members shall wear the official ID card provided to them so that their name is visible to the customers
/ visitors.
 Staff members who are provided with livery /uniform i.e. Sub-staff/ HKPs/Armed Guards/ any other staff
members, shall wear Crisp and Clean livery/ uniform while on duty.
 Staff members shall wear clean shoes/ footwear and not slippers while on duty.
 Wearing of shorts, three fourths i.e. trousers other than full length trousers, T-shirts, jeans and sneakers/
sport shoes etc., to be avoided. The formal dresses worn shall be smart, pleasing, neat, tidy and presentable.
 Maintenance of Personal hygiene is required not only for good health but also for pleasant appearance.
158/22 Customer service – punctuality and discipline
Enhanced Customer Satisfaction being the key to Bank’s success and growth, the areas which needs to be
focused upon by the staff in their day to day functioning is reiterated hereunder:

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 Canara Institute of Bank Management, Manipal

 All employees have to maintain discipline and be punctual in attending the office. Every employee shall reach
the office at least 15 minutes in advance of commencement of business hours.
 Every employee, without exception, shall be at his place of work and commence the allotted work at the
time fixed and notified, work for full hours and give maximum output.
 Every employee is expected to maintain good conduct and discipline and render courteous service to all
customers in all transactions and negotiations with the Bank.
 If any staff member is found to be repeatedly coming late, the Bank will initiate disciplinary action apart
from not permitting such late comers to report for duties on such days treating it as "No Work No Pay".
159/22 Annual Closing of Government Accounts - Transactions of Central/State Governments –
Special Measures for the Current Financial Year (2021-22)
RBI has instructed following arrangements are to be put in place to report and account Government transactions
for 31st March, 2022:
 Designated Branches are to be kept open for over the counter transactions related to Govt. Transactions up
to the normal working hours on March 31, 2022.
 Transactions through National Electronic Fund Transfer (NEFT) and Real Time Gross Settlement (RTGS)
system will continue up to 2400 Hours as hitherto on 31st March, 2022.
 Special Clearing will be conducted for collection of Government Cheques on 31st March, 2022 for which the
concerned Wing will issue necessary instructions as per Department of Payment and Settlement Systems
(DPSS), RBI guidelines.
 Regarding Reporting of Central and State Government transactions to RBI, including uploading of GST/e-
receipts luggage files, the reporting window of 31st March, 2022 will be extended and kept open till 1200
hours on 1st April, 2022.
160/22 Reporting by officer employees in case of arrest/ detention by police/ CBI etc.
It is observed that the Officer Employees who are arrested by police, upon release, rejoin duty and are submitting
leave application without disclosing the fact of their arrest and get the leave sanctioned.
It shall be the duty of an Officer Employee who is arrested/detained by Police/CBI etc., for whatsoever reason/s
to promptly intimate the fact of his arrest/detention, with details such as date and time of arrest, name of police
station, description of offences alleged, the circumstances connected therewith etc., to the respective HRM
Section of the Circle Office and also the ‘in charge’ of the Department / Branch even though he might have been
subsequently released on bail / or otherwise. Failure on the part of the Officer Employee to inform the concerned
authorities as stated above will be recorded as suppression of material information and shall render him liable
to disciplinary action
161/22 Payment of allowance to clerks holding second set of double lock keys
 Clerical Employees who are holding the 2nd set of Double Lock Keys in branches where there is no
Supervisory Staff to hold the 2nd set of Double Lock Keys shall be eligible for special pay of Rs.2920/- per
month.
 The above allowance shall be paid on pro-rata basis for the days of such key holding.
 In the above cases, the Clerks shall also perform the duties of Single Window Operator ‘B’ or duties of Special
Assistant as per the exigencies in the branch.
 If the Clerk performs any other duties attracting Allowance / Special Pay, he/ she shall be paid only the higher
of the Allowances.
162/22 Social Media Policy of the Bank for the Financial Year 2022-23
Revised Social Media Policy of our Bank for the Financial Year 2022-23 is annexed in this circular. The Policy
Consists of two parts, A and B. Part A is for Employees/Branches/Service Units/Administrative Units. Part A is
restricted for internal circulation only. Part B is for Customers, Stakeholders and General Public.
The revised policy shall come into effect from 01.04.2022 till 31.03.2023 or until further instructions.
163/22 Web Communication Policy of the Bank for the Financial Year 2022-23
Revised Web Communication Policy of our Bank for the Financial Year 2022-23 w.e.f 01.04.2022. The Details of
the Policy are furnished in the Annexure.
164/22 Implementation of online facility through HRMS package for submission of application for Voluntary
Retirement/Resignation by the employees.
Now, as a part of digitalization and to make the process flow easier, we are pleased to inform that the new
module regarding application for submission of Voluntary Retirement/Resignation is enabled for
entering/uploading the details in HRMS package. The module is being enabled from 01.04.2022 onwards and
can be accessed as under:
Request for Voluntary Retirement/Resignation submission by the employees:
HRMS --> Self Service --> VRS/RESIGNATION ESS
Forwarding by branches/Offices:
HRMS -> Manager Self Service -> VRS/RESIGNATION Module -> VRS/RESIGNATION MSS
165/22 Continuation of concessional rate of interest for all gold loan schemes till 30.09.2022.
Now the Competent Authority has permitted to continue the concessional Rate of Interest for all Gold Loan
Schemes till 30.09.2022.
Agricultural Gold Loans- 1 Year MCLR (Presently 7.25% p.a.)
Swarna Schemes, MSME Gold Loans- RLLR+0.35 % (Presently 7.25% p.a.)
166/22 Special Clearing Operations on March 31, 2022
SPECIAL CLEARING ON MARCH 31, 2022:
 Branches/Offices to participate in special clearing operations on 31stMarch 2022

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 Canara Institute of Bank Management, Manipal

 Branches, Accounts Sections /Clearing Sections and CTS Grid Centers to keep inward clearing processing
infrastructure open during special clearing.
 Maintenance of sufficient balance in clearing settlement account
167/22 Reserve Bank of India - Master Direction- Regulatory Framework for Microfinance Loans - Directions, 2022
The Master Direction of RBI on Microfinance Loans is furnished as Annexure to this Circular. Important
modifications are as under-
 Identification of Microfinance loan- Collateral-free loan given to a household having annual household
income up to Rs.3 lakh irrespective of areas. For this purpose, the household shall mean an individual family
unit, i.e., husband, wife and their unmarried children. (earlier Rs.1.25 lakh for rural and Rs.2 lakh for urban
and semi-urban areas)
 Qualifying assets criteria- The definition of ‘qualifying assets’ is now being aligned with the definition of
“microfinance loans”. The minimum requirement of microfinance loans for NBFC-MFIs stands revised to 75%
of the total assets. (earlier 85%)
 NBFCs extending loans to its total assets- The maximum limit on microfinance loans for NBFCs now stands
revised to 25 per cent of the total assets. (earlier 10%)
168/22 Credit Guarantee Scheme for Farmer Producer Organizations (CGSFPO)
NABSanrakshan Trustee Private Limited vide their letter Ref.NABSanrakshan /309/NTPL-FPO-6/2021-22
informed that, Department of Agriculture & Farmers Welfare, GoI has approved CGSFPO for loans sanctioned to
FPOs under Central Sector Scheme for Formation and Promotion of 10,000 FPOs by Eligible Lending Institutions.
The Scheme will be implemented under the Credit Guarantee Fund Trust for Farmer Producer Organizations
managed under the trusteeship of NABSanrakshan Trustee Private Limited, a wholly owned subsidiary of
NABARD. The Scheme, to the extant guidelines also covers the FPOs supported under Agriculture Infrastructure
Fund (AIF).
Important features of scheme-
 Name of the scheme “Credit Guarantee Scheme for Farmer Producer Organizations (CGSFPO)”
 The maximum credit guarantee cover will be 75% of the sanctioned credit facility with a maximum ceiling of
Rs. 1.50 crore (i.e., Loans sanctioned upto Rs 2.0 Crore).
 The guarantee cover will commence from the guarantee start date and shall run through the agreed tenure
of the term credit for total period of 5 years.
 Other charges such as penal interest, commitment charge, service charge, or any other levies/ expenses, or
any costs whatsoever debited to the account of FPO by the Eligible Lending Institution (ELI) other than the
contracted interest shall not qualify for Credit Guarantee Cover.
 Annual Guarantee Fee (AGF) for loans up to Rs.1.0 crore shall be charged @ 0.75%. For credit facility above
Rs. 1 crore, AGF shall be charged @ 0.85% subject to a maximum AGF ceiling of Rs. 1,70,000 (Rupees one
lakh seventy thousand only).
 Lock-in period under CGSFPO is 12 Months.
 The ELI may invoke the guarantee in respect of credit facility within a maximum period of 12 months from
the date of NPA, if NPA is after lock-in period. If NPA is within lock-in period, the guarantee can be invoked
within one year of the end of lock-in period.
169/22 Review and modification of policy guidelines on financing to custom service units for harvesting &
transportation under tie up with sugar mills
The objective of the scheme is financing directly to Custom Service Units managed by individuals, institutions or
organizations who maintain a fleet of Tractors, Trucks, Lorries, Harvesters, Bullock Cart, etc and undertake
Harvesting & Transport (H&T) of Sugarcane for farmers, under tie up with Sugar Mills.
In order to have better control, Monitoring & End use of funds lent to H & T contractors, the following
modifications have been made in the scheme guidelines-
 No fresh exposure under H & T to be entertained.
 All the proposals to fix the overall limit under tie up arrangement with Sugar Mills having existing H & T
exposure are to be permitted by Head Office i.e., CGM/GM-HO-CAC and above authorities only with
minimum 10% reduction over previous year exposure.
 Further, renewal of existing exposure will be done at HO (CGM/GM-HO-CAC and above authorities) only
without stipulation of having borrowal account of Sugar Mill with us. However, corporate Guarantee of Sugar
Mill should be available against the proposed H & T exposure. Other conditions remain unchanged.
 Principal: Principal shall be liquidated within 12 months from the date of disbursement from receivables of
the Mills through direct remittance to respective Borrowers account.
Interest: The interest to be debited at half-yearly rest and shall be cleared along with the principal amount
170/22 Padho Pardesh Scheme of Interest Subsidy on Education Loans for Overseas Studies for the students belonging
to the Minority Communities – Opening of SAS package for submitting claims for March 2022 Quarter (FY
2021-22)
Ministry of Minority Affairs, Government of India has permitted for submission of interest subsidy claims under
the Padho Pardesh Scheme for the Quarter ended March 2022 Quarter pertaining to FY 2021-22. Portal is open
from 04.04.2022 to 13.05.2022
All Claims (Both Canara and E-Syndicate Accounts) to be entered under SAS package only. Practice of sending
Excel for E-Syndicate Accounts stands discontinued.
171/22 Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies for Other
Backward Classes (OBCs) & Economically Backward Classes(EBCs) – Opening of Web Portal for submission of
claims for March 2022 Quarter (FY 2021-22).

परिपत्र साि: Gist of Circulars 22

 Canara Institute of Bank Management, Manipal

The SAS package for ACSIS Scheme will be kept open from 04.04.2022 to 13.05.2022 for submission of eligible
claims under the Scheme.
All Claims (Both Canara and E-Syndicate Accounts) to be entered under SAS package only. Practice of sending
Excel for E-Syndicate Accounts Stands discontinued.
172/22 Cloud Policy
The Cloud Policy, approved and adopted by the Board – Information Technology is annexed to this circular. The
same can be accessed using the following link in the CANNET for reference and adherence. Cannet- > Policies -
>Technology
173/22 Agriculture lending policy of the bank for FY 2022-23
Agriculture lending policy of the Bank for the financial year 2022-23 has been approved and the updated policy
is enclosed as Annexure-I to this Circular.
174/22 Submission of interest subvention claim for financial year 2021-22
As per the Interest Subvention scheme, all KCC short term crop loans and KCC loans to Agriculture allied activities
(Fisheries and animal husbandry) are eligible for Interest subvention for maximum limit of up to Rs 3 lakhs per
borrower.
Accordingly interest subvention and additional incentive subvention will be passed on to all the eligible KCC
accounts for the following schemes by debiting respective branch SA heads.
1. Interest subvention for Short term Crop loans.
2. Interest subvention on post-harvest credit (Produce Loan) against negotiable warehouse receipts.
3. Interest subvention on Loans restructured due to Natural Calamity.
4. Interest subvention/incentive on loans restructured due to severe Natural Calamity.
5. Short Term loans to Animal Husbandry farmers upto Rs.2 lakhs.
6. Short Term loans to Fishery farmers upto Rs.2 lakhs.
7. 7. Interest Subvention for short term crop loans up to Rs. 3 lakh having original Due Dates between
01.03.2021 & 30.06.2021 and benefitted due to the extension in repayment period up to 30.06.2021 on
account of 2nd wave of COVID-19 pandemic
The interest subvention passed to be certified by Statutory Auditor in case of audited branches and branch head
in case of non-audited branches.
175/22 Rigour policy for officer employees for promotion
For the year 2022-23, the Rigour policy was reviewed and the policy is reiterated as under-
 In case of punishment under Minor Penalty, NO rigour of punishment needs to be prescribed for the purpose
of promotion. However, wherever punishment of “withholding of promotion” under Regulation 4 (c) of
Canara Bank Officer Employees’ [Discipline & Appeal] Regulations, 1976 is imposed, the period ordered by
the Disciplinary Authority for withholding the promotion shall be the rigour period. By this, the Officer
employee who is undergoing the rigour of penalty as on the date of Departmental Promotion Committee
[DPC] shall not be promoted.
 In case an Officer employee is imposed with the punishment of Major penalty under Regulation 4 [f] of
Canara Bank Officer Employees’ [Discipline & Appeal] regulations, 1976, the rigour of punishment for the
purpose of promotion shall be ONE YEAR from the date of imposition of the punishment.
 An Officer employee imposed with the punishment of reduction in Grade or Post the rigour of punishment
for the purpose of promotion shall be TWO YEARS from the date of imposition of the punishment.
176/22 Whistle Blower Policy - Reporting Irregular Practices In Any Operational Areas Including Frauds And
Malpractices At Branches/ Offices
 The Whistle Blower Mechanism is an important tool for Preventive Vigilance. The 'Whistle Blower Policy' has
been introduced in the Bank to report unethical practice, frauds, if they observed in any operational areas.
For the year 2022-23, the policy is reviewed and the reviewed policy is furnished as an Annexure to this
Circular.
 The employees of the Bank may make a written complaint regarding unethical practice/ frauds observed by
him. The complaint shall be in a closed/secured envelope and should be addressed to the Chief General
Manager, H R Wing, Head Office, who is the “Designated Authority
177/22 Gold loan policy of the bank for the financial year 2022-23
Gold Loan Policy of the Bank for the Financial Year 2022-23 has been approved and is attached as Annexure I.
The Policy is uploaded in CANNET under the following link;
Cannet>>Policies>>Other policies>>Gold Loan Policy 2022-23
178/22 Bharat Bill Pay Policy 2022-23
The Bharat Bill Pay Policy for the year 2022-23 has been approved by board, and the same is available in annexure
to this circular.
Important Changes/ Additions:
The sanctioning power is delegated to Wing Head, DBS Wing in case of renewal/extension of BBPS facility to a
Biller with concession/ waiver of transaction charges.
179/22 Employees’ Grievance(S) Redressal Policy 2022-23
 The Employees’ Grievance(s) Redressal Policy was introduced to address the genuine individual grievance(s)
relating to the service conditions of the employee/s, so that the same can be considered for speedy
resolution.
 The policy is reviewed and adopted for the year 2022-23 with the permission of the Competent Authority.
The policy is reiterated in the Annexure to the Circular for the benefit of all the employees.

परिपत्र साि: Gist of Circulars 23

 Canara Institute of Bank Management, Manipal

 Grievance(s)’ for the purpose of this policy would mean a grievance relating to any employee arising out of
the implementation of the policies/rules/ regulations governing his service conditions viz., matters relating
to leave, increment, non-extension of benefits under rules, interpretation of Service Rules/ Regulations, etc.,
of individual nature.
 With a view to make Employees Grievance Redressal Mechanism more employee friendly, paperless and to
ensure speedy disposal of grievances of the Employees, ‘Canarite Grievance Redressal System’ was
introduced. The same is available in cannet under the path: Quick Links > SAS Biometric Login > General
>Canarite Grievance Redressal System (CGRS).
180/22 Financial Inclusion Policy for the year 2022-2023
Financial inclusion is a process of ensuring access to financial services including timely and adequate credit
facilities to the vulnerable sections of the society such as weaker sections and low income groups at affordable
cost
The Financial Inclusion Policy for the year 2022-23, reviewed & approved by the Competent Authority with
modifications/additions, is annexed to this Circular.
181/22 Policy On Work From Home (WFH)
For the year 2022-23, the policy for work from home is reviewed and adopted with the permission of the
Competent Authority. Brief highlights are as under-
 Work From Home is one of the tools of Business Continuity Plan of the Bank. Work From Home (WFH) in
Banking Industry is being adopted to create an enabling provision for such arrangement without disturbing
or compromising the administrative requirements.
 It shall be noted that the Work From Home (WFH) arrangement is not a right but a Business Continuity
Plan of the Bank.
 The policy envisages only such employees can be permitted with WFH facility whose work can be
monitored and measured remotely both quantity and quality wise.
 The identification of department wherein this policy can be implemented has been vested with Wing/Circle
Head to ensure that such decisions are taken with all seriousness duly weighing the administrative
requirements.
 IT enabler shall provide access to various packages to the eligible employee to WFH based on the security
policy of the Bank. However, eligible Officers login to CBS shall be disabled while working from home.
 Days of entrustment of WFH assignment should not exceed 10 days in a month.
182/22 GST e-invoice/Invoice Reference Number (IRN) System – Key points to be ensured by Branches/Offices while
receiving invoice from supplier having aggregate turnover exceeding Rs. 20 crore.
E-invoicing mandatory for taxpayers having an aggregate turnover exceeding Rs.20 crore w.e.f 1st April 2022
(earlier threshold turnover limit was Rs. 50 cr)
If the vendor is mandated to issue E-invoice, ITC can be availed by the Bank only against the vendor’s GST E-
invoice.
183/22 Policy on “Use of Social Media/Electronic Media/Internet Blogs etc., by the employees – Do’s and Don’ts
To sensitize the employees/ex-employees to be more responsible while communicating/airing their views on
the Social Media / Public Domain about the Policies of the Bank, its employees, its customers or of any nature
which has direct or indirect bearing on the reputation/goodwill of the Bank. Accordingly For the year 2022-23,
the policy was reviewed and a few modifications were effected. The revised policy is furnished in Annexure to
the Circular.
It shall also be noted that forwarding the posts/blogs/ messages/ views on Social Media/ Electronic Media/
Internet Blogs which may be defamatory to the Bank or its officials will also be considered as violation of the
subject policy.
184/22 Extension of linking of Aadhar with PAN till 31.03.2023
CBDT vide Circular No. 7 of 2022 dated 30.03.2022 has extended linking of Aadhar with PAN till 31.03.2023.
However, an individual who is required to link Aadhar with PAN, fails to do so on or before 31.03.2022, shall be
liable to pay following fees to the Income Tax Department:
PAN-Aadhar linking is done during 01.04.2022 to 30.06.2022-Rs. 500/-
PAN-Aadhar linking is done during 01.07.2022 to 31.03.2023-Rs. 1,000/-
185/22 Scheme of reward for resisting dacoits/robbers in case of Bank robberies, Compensation to Bank employees
who are killed in Bank robberies, Terrorist incidents including Left-Wing Extremism.
With reference to subject-
1. In case of death of an employee compensation by the Bank as follows:
In case of death of Officers : Rs. 20 lakhs
In case of death of Clerical/Sub-staff : Rs. 10 lakhs
2. The Bank will look after educational expenses of the children of the deceased up to and inclusive of
graduation along with one compassionate appointment.
3. The loans for housing etc., which might have been availed of by the employee may be transferred to the
family member, if any.
4. In respect of persons other than the Bank employee who may get killed as a consequence of or during
robberies and/or attack, the Bank will pay a lump sum compensation of Rs.3 lakhs to the family of the
deceased along with all expenses for treatment of injury caused.
5. In case of Bank employees /customers/ members of public who actively resist bank robberies and terrorists’
attacks on Banks, the Bank may consider a cash reward not exceeding Rs.2 lakhs. In addition, the Bank
employees may be given an out of turn promotion, if they satisfy the minimum conditions of eligibility

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 Canara Institute of Bank Management, Manipal

prescribed for direct recruits to the post but without reference to the number of years of service rendered.
Employees not covered for criterion for promotion may be allowed three advance increments in their
existing grade on a permanent basis.
186/22 Permission to operate from nearby place other than the place of work
In respect of Officers / Managers working in places other than rural centers, permission to stay and operate from
other than the place of work is to be obtained from the Chief General Manager/General Manager, H R Wing,
Head Office, Bengaluru only if the place of posting lacks in basic amenities like children’s education, housing
facilities, medical facilities etc..
187/22 Procedure for confirmation of officers, clerks & sub-staff on probation & termination of officers during
probation – reiteration of guidelines
This is circular on comprehensive guidelines on probation period of employee- directly recruited as well as
promoted in cadre of Sub-staff to clerk and clerk to officer. Guidelines related to extension of probation period
and delegated author is also given in this circular.
188/22 Ghosh committee recommendations relating to frauds and malpractices in banks
With reference to Ghose committee recommendation the following guidelines are reiterated for compliance by
all the staff members:
 Wherever staff members open accounts with our Bank branches and other Banks either in the name of self
or jointly with others, where staff name appear first in the joint account, reporting has to be made within
30 days of opening of such accounts along with detailed nature of account.
 All staff members are requested to take note of the above and furnish the details of operative accounts
immediately to concerned HRM Section, Circle Office/ HOSA Section, H R Wing / S A Section, Inspection
Wing, Head Office, Bengaluru if not reported earlier.
189/22 Debit Card Issuance Policy 2022-23
The Debit Card Issuance Policy for the year 2022-23 has been approved and adopted by the Board of Directors
on 10.03.2022.
Important Changes/ Additions :
 All undelivered return Personalized Debit Cards shall be delivered to the respective CPH mapped to the
customer’s branch as per Circular No. 566/2021
 Non-Personalized (NP) debit cards are generated without any specific DP Codes, the functionality of
movement of NP debit cards between Branches/RO/COs has been provided in our SAS-Integrated Card
Indent-New package. Branches to invariably acknowledge the Non-Personalized Debit Card indents received
in SAS Integrated Card indent package.
 Auto renewal on expiry of cards shall be extended only for active cards i.e. cards used at least once for
financial transaction in the last 1 year.
 All RuPay Domestic cards issued by our Bank shall also be accepted at :
i) Royal Monetory Authority (RMA) of Bhutan for Merchant Locations and ATM.
ii) Network of Nepal SBI Bank Limited (NSBL), Nepal for PoS and ATM.
190/22 Extension of Concessional ROI of 25bps under Housing Loans (all variants) where score band as per Canara
Retail Grade - CRG-1>80 i.e., Low Risk, for further period from 01.04.2022 till 30.06.2022
Competent authority has permitted extension of concessional ROI of 25bps under Housing Loans where score
band as per Canara Retail Grade - CRG-1>80 i.e., Low Risk, for further period from 01.04.2022 till 30.06.2022, to
retain our existing customers & to bring new clients to our fold for sourcing/ garnering new business under
Housing Loan segment (all variants)
191/22 Submission of claims for monthly/quarterly reimbursements in HRMS Package by employees retiring on
Superannuation
An option has been enabled in HRMS package to retiring employees during the last week of their retirement
month for submission of claims for monthly/quarterly reimbursements.
The Supervisor shall authorize the same on the first working day of the succeeding month and amount shall be
credited to the account of the retired employee through STP.
192/22 Internet Banking Policy 2022-2023
The Internet Banking Policy for the year 2022-23 has been approved and adopted by the Competent Authority
on 09.03.2022. The same is available in Cannet>>Policies>> Other Policies>IB Policy 2022-23
193/22 Mobile Banking and UPI Policy 2022-2023
The Mobile Banking & UPI Policy for the year 2022-2023 has been approved and adopted by the Competent
Authority on 09.03.2022. The same is available in Cannet>>Policies>> Other Policies>Mobile & UPI Policy 2022-
23
194/22 -
195/22 Compliance policy of the bank for the financial year 2022-23
The objective of the bank’s Compliance Policy is to enable strict observance of all statutory provisions contained
in various relevant legislations as well as other regulatory guidelines including industry standards and codes,
Canara Bank’s internal policies and fair practices codes.
The reviewed Compliance Policy of the bank for the financial year 2022-23 is annexed to this circular.
196/22 Traditional insurance policies for fy 2022-23 and guidelines for claim processing
The Traditional Insurance Policies viz., Bankers Indemnity policy and Master / Assets Policy for FY 2022-23 is
renewed with National Insurance Company Ltd. The Policy is covered for the period from 1st April 2022 to 31st
March 2023.

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 All Claims under Bankers Indemnity & Master Assets Policy shall be taken up with National Insurance Co Ltd.,
Divisional Office – IV, Bengaluru.
 No claim shall be lodged with Local Offices of the Insurance Company.
 All Claim notification to be sent within 24 hrs from the Date of incident / Date of Detection of Loss.
 Delay in intimation of incidents / claims may result in rejection of claims, causing financial loss to the Bank.
197/22 Vidya turant – an online instant education loan sanction facility for the students of IIMs/IITs/NITs/IISC/ISB–
addition of institutions and modifications in scheme guidelines.
In order to increase the volume of quality lending under education loan portfolio, Bank has improvised our
Vidhya Turant Scheme. Followings are the new additions/ modifications
1. Inclusion of 33 new institutions under the Vidya Turant Scheme placed under the Group C institutions are
as below,
a) All ‘National Institute of Design’ (i.e. Total Nos. 5 NIDs)
b) All ‘Indian Institute of Information Technology’, (i.e. Total Nos.26 IIITs),
c) Manipal Institute of Technology (i.e. Total Nos.1 MIT)
d) Xavier Labour Relations Institute (XLRI), Delhi NCR (Jhajjar) (i.e. Total Nos.1 XLRI)
With the above new inclusion of 33 institutions, the total institution covered under Vidya Turant Scheme
presently stood at 154 No.
2. Increase in the maximum eligible limit under Group A, B & C institutions of Rs. 50 lacs, Rs. 40 lacs, Rs. 30 lacs
respectively.
3. 46 No. of institutions are moved to Category B from Category C
All other terms and conditions of the scheme guidelines enumerated in earlier circulars remain unchanged.
198/22 -
199/22 Credit Card Policy 2022-23
The Credit Card Policy for the year 2022-23 has been approved and adopted by the Board of Directors on
10.03.2022.
Important changes/ additions:
 Changes in delegation of power for issue of credit cards at Branches, RAH, PCBs etc.
 Personalised credit cards remaining undelivered for more than 3 months are to be destroyed following the
guidelines of destruction of security items.
 Penal charges for pre-closure of EMI’S will be applicable at 2% of outstanding principle plus applicable taxes.
 By default, all credit cards will be issued with revolving facility.
200/22 Domestic Prepaid Instrument Policy 2022-23
The Domestic Prepaid Instrument Policy for the year 2022-23 has been approved and adopted by the Board of
Directors on 10.03.2022. The same is available in Cannet>>Policies>> Other Policies> Domestic Prepaid
Instrument Policy 2022-23.
Important Points:
 Enhancement in maximum limit under prepaid cards to Rs.2,00,000/- as per RBI Master directions
 Prepaid Instruments with no financial transaction for a consecutive period of one year shall be made inactive
by the Bank.
 All the Prepaid Instruments stock supplied to the branches are to be treated as high security items and to
be handled accordingly as per extant guidelines.
 Prepaid Instruments are to be issued to Customer against his request /acknowledgement.
201/22 Management information system policy for FY 2022 - 23
The MIS policy has been reviewed and adopted by the Competent Authority for FY 2022-23. Adopted policy is
annexed to the present Circular.
202/22 -
203/22 -
204/22 Implementation of new modules in Document Management System (DMS).
Vide HO Cir. No.903/2020 e Bank had introduced Document Management System (DMS) encompassing two
Work Areas as detailed below ::
 Inter Office Memorandum (IOM) for communication between Branches/Offices.
 Centralized Current Account Opening (Phase-1) of Unit-I branches through Central Processing Hubs.
DMS can be accessed under SAS > General > Document Management System.
Document Management System is in adherence with our digital commitments which is legally valid and which
will further augment the Bank’s operational efficiency. Path to access User Manual in CANNET: Cannet-> Other
Links -> DOCUMENT MANAGEMENT SYSTEM. (DMS USER MANUAL)
205/22 -
206/22 Micro finance policy for the FY 2022-23
Micro Finance Policy for the financial year 2022-23 has been approved and the updated policy is enclosed as
Annexure I to this circular.
207/22 Policy of our bank on Insolvency & Bankcruptcy code (IBC), 2016 for FY 2022-23
 The objective of the IBC 2016 is to promote entrepreneurship, availability of credit, and balance the
interests of all stake holders by consolidating and amending the laws relating to reorganization and
insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner
and maximize the value of assets of such persons and matters connected there with or incidental thereto.
 A key innovation of the Insolvency and Bankruptcy Code is four pillars of institutional infrastructure.

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1) The first pillar of institutional infrastructure is a class of regulated persons, the ‘Insolvency
Professionals’ (IP). They would play a key role in the efficient working of the process. They would be
regulated by ‘Insolvency Professional Agencies’ (IPA).
2) The second pillar of institutional infrastructure is a new industry of `Information Utilities'(IU). These
would source and store Financial Information about lenders in electronic databases in a universally
accessible format. This would eliminate delays and disputes about facts when default does take
place.
3) The third pillar of institutional infrastructure is in adjudication. The NCLT will be the Adjudicating
Authority for Corporate/LLP/firms and other limited liability entities and the DRTs will be the
Adjudicating Authority for individual & Partnerships. These institutions, along with their Appellate
bodies, viz., National Company Law Appellate Tribunal (NCLAT) and DRATs will ensure the effective
and efficient functioning of the processes prescribed under the Code.
4) The fourth pillar of institutional infrastructure is a Regulator viz., ‘The Insolvency and Bankruptcy
Board of India’ (IBBI). This body will have regulatory over-sight over the Insolvency Professional,
Insolvency Professional agencies and information utilities.
 It is pertinent to understand that process of resolution under the provisions of IBC, 2016 culminates in
either of the following paths: - Path of Resolution - Path of Dissolution
 Either of the aforementioned paths is to be decided upon within 180 days. This period of 180 days
prescribed by the Code is intended to give a time frame to the stake holders to decide upon their path: -
Whether they decide to revive & rehabilitate the corporate debtor by choosing the path of Resolution;
or - Whether to put an end to the corporate existence of the debtor leading to Liquidation by choosing
the path of dissolution.
 Under SICA, the benefit of rehabilitation process can be taken by sick industries only; whereas, under the
IBC 2016, all Corporate Debtors defaulting in repayment of Rs 1 Crore and above can be potential
candidates for invocation of provisions of Code.
 The Code provides for compulsory Corporate Insolvency Resolution (CIR) Process to precede liquidation
with in a time bound manner for all Corporates prior to liquidation. During that period creditors have to
consider measures to resolve the financial distress of the corporate and to maintain and preserve its
continued business operations by framing a plan referred to as are solution plan (“Resolution Plan”).
 The advantage in IBC, 2016 is that in absence of resolution plan in 330 days (or even earlier as decided
by COC), Corporate Debtor goes in for automatic liquidation.
 The phrase ‘technical insolvency and actual insolvency’ are used to explain these two situations
(technical insolvency–when liability is higher than the assets and actual insolvency when cash flow is
insufficient to pay the debts.).
 AUTHORITIES UNDER THE IBC, 2016
a) Regulatory Authority: The Insolvency and Bankruptcy Board of India (“IBBI”) has been established
under the Code as the primary regulatory authority having wide powers to regulate the Insolvency
Professional Agencies, Insolvency Professionals and Information Utilities constituted under the Code.
b) Adjudicating Authorities:
1) National Company Law Tribunal (“NCLT”): As per the Code, the NCLT is the adjudicating authority
for the insolvency matters concerning Corporates, LLPs and other limited liability entities
incorporated under any law in force.
2) The Debt Recovery Tribunal (“DRT”): The DRT is the adjudicating authority for the bankruptcy of
partnerships and individuals.
3) National Company Law Appellate Tribunal (“NCLAT”): All appeals against the orders of NCLT will
lie with the National Company Law Appellate Tribunal (“NCLAT”).
4) Debt Recovery Appellate Tribunal (“DRAT”): All appeals against the orders of DRT will lie with
the Debt Recovery Appellate Tribunal (“DRAT”).
5) The Supreme Court of India: The Supreme Court of India has the final Appellate Jurisdiction over
the NCLAT and DRAT.
c) Insolvency Professional Agencies (IPA): These are specialized bodies/agencies that will be entrusted
with the task of registering and governing the Insolvency Professionals.
d) Insolvency Professionals (IP): Insolvency Professional (“IPs”) is licensed professionals who undertake
the role of an Interim Resolution Professional (IRP), Resolution Professional (RP), Liquidator and/or
a Bankruptcy Trustee under the resolution process initiated under the Code. The IPs have to be
enrolled with any one of the IPAs and then registered with the IBBI, prior to undertaking any actions
as an IP under the Code
 IBC Monitoring Section, under SAM Wing shall monitor the accounts referred to NCLT/DRT under IBC
2016.
 Leasing exposure of Rs.25 Crores and above shall be followed up by SAM Wing.
 CERSAI VERSUS INFORMATION UTILITY:
1) The Central Registry of Securitization Asset Reconstruction and Security Interest of India ("CERSAI")
was constituted with the primary intention of preventing mortgage frauds wherein multiple
mortgages would be created in favour of multiple lenders over the same property by use of
fraudulent title deeds. Initially, only the details of mortgage by deposit of title deeds i.e., equitable
mortgages were required to be filed with CERSAI. However, pursuant to an amendment to the
Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (Central

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 Canara Institute of Bank Management, Manipal

Registry) Rules, 2011 ("SARFAESI Rules"), now particulars of creation, modification or satisfaction of
security interest by any type of mortgage, hypothecation of plant and machinery, stocks, debt,
receivables, intangible assets, knowhow, patent, copyright, trade mark, license and franchise also
require registration with CERSAI. Despite the above amendment, there are no provisions in SARFAESI
or the SARFAESI Rules which necessitate the utilization of the information available with CERSAI.
2) The IBC 2016 clearly stipulates that the records of an Information Utility may be accessed by the
liquidator and interim insolvency professional in furtherance of their functions under the Code.
3) The scope of the Code is much wider than that of SARFEASI. The provisions of SARFAESI are applicable
only to banks and certain financial information whereas an action under the Code may be initiated
by any creditor which includes within its scope any person to whom a debt is owed.
 NeSL is an information utility registered with the IBBI and is governed by the provisions of Code and
Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017 (hereinafter referred
to as “IU Regulations”).
 NeSL is incorporated with the objective of augmenting the information infrastructure by storing Financial
Information as defined by section 3(13) of the IBC that helps to establish defaults and verify claims as
expeditiously as possible and thereby facilitating resolution of insolvency and bankruptcy in a time bound
manner as prescribed in the IBC.
 NeSL will function under regulatory supervision of the Insolvency and Bankruptcy Board of India and
serve the needs of the banking system by providing data to Insolvency Professionals on fact of borrowing,
fact of default and security interest data while adhering to both networking principles and the highest
information security.
 NeSL shall store and maintain all the information received from Information Submitter in a secured
database in such manner as prescribed under IU Regulations and shall at all-time exercise due and
reasonable care, skill and diligence for keeping the information secured.
 NeSL shall hold the information as a custodian and recipient of information from IP.
 PRE-PACKAGED INSOLVENCY RESOLUTION PROCESS [PIRP]
 Means Insolvency Resolution Process of Corporate Debtors classified as MSMEs with minimum default
of Rs.10.00 lacs. Central Government may, by notification, specify such minimum amount of default of
higher value, which shall not be more than Rs.1.00 Crore.
 The members of the Corporate debtor have passed a special resolution or at least 3/4 of the total number
of partners of the CD have passed a resolution approving the filing of an application for initiating PIRP.
 The CD have to obtain approval from not less than 66% of FCs in value of the financial debt due to such
creditors, for the filing of an application for initiating PIRP & also approval of Resolution Professional
proposed by CD.
 NCLT within a period of 14 days of receipt of the application, by an order, admit the application, if it is
complete; or reject the application, if it is incomplete. However, before rejecting, NCLT shall give notice
to the applicant to rectify the defect in the application within 7 days from the date of receipt of such
notice.
 The PIRP shall be completed within a period of 120 days from the PICD.
a) Within 90 days of PICD, RP shall submit the plan approved by the CoC to the NCLT.
b) 30 days’ time is available to NCLT to give its order on the plan, submitted by the RP.
c) There is no time granted by the Regulations/Act for any extension, unlike in CIRP.
 The RP within 7 days of PIRP shall constitute a Committee of Creditors, based on the list of confirmed
claims. The first meeting of CoC shall be held within 7 days of the constitution of CoC.
 The approval of the resolution plan, by CoC, shall be by a vote of not less than 66% of the voting shares
of claims maintained by the RP.
PROCEDURE BEFORE THE NCL
 The application of a Financial Creditor (FC) must be accompanied with fees of Rs.25000/-.
 In the case of application being filed by Operational Creditor (OC), the fees presently prescribed for the
purpose is Rs.2000/-.
 Admission of application by NCLT marks the beginning of process of Insolvency Resolution.
 “Fair Value” means the estimated realizable value of the assets of the corporate debtor, if they were to
be exchanged on the insolvency commencement date between a willing buyer and a willing seller in an
arm’s length transaction, after proper marketing and where the parties had acted knowledgeably,
prudently and without compulsion.
 “Liquidation Value” means the estimated realizable value of the assets of the corporate debtor, if the
corporate debtor were to be liquidated on the insolvency commencement date.
Liquidation Waterfall Mechanism.
 Proceeds are to be distributed as per the following Waterfall mechanism:
1) The insolvency resolution process costs and the liquidation costs to be paid in full;
2) Debts owed to a secured creditor in the event such secured creditor has relinquished security; along
with (ranking equally pari-passu), Unpaid workmen’s dues for the maximum period of 24 months
before liquidation.
3) Wages and any unpaid dues owed to employees other than workmen for the period of 12 months
before liquidation;
4) Financial debts owed to unsecured creditors;

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 Canara Institute of Bank Management, Manipal

5) Dues to the Governments in respect of the whole or any part of the period of two years preceding
the liquidation commencement date along with (ranking equally pari-passu) debts owed to secured
creditors for unpaid amounts following the enforcement of security interest, ranking equally (pari-
passu).
6) Any remaining debts and dues.
7) Preference shareholders, if any; and
8) Equity shareholders or Partners, as the case may be.
 The liquidator shall liquidate the CD within a period of 1 year from the liquidation commencement date.
Provided that where the committee of creditors has recommended sale of the Corporate Debtor or
business(s) of the Corporate Debtor as a going concern or where the liquidator is of the opinion that
above sale shall maximize the value of the corporate debtor, liquidation process may take an additional
period of 90 days.
208/22 NEFT policy for the year 2022-23
 Mumbai is the Nodal Office for NEFT transactions.
 There will be 48 half-an hourly settlement per day i.e. starting from 00.30 hrs to 00.00 hrs without
holidays and on 24 x 7 basis.
 Rs.50,000/- and above should be routed only through customer’s account and not against cash payment.
 Service Charges including GST are subject to change, as notified by RBI, from time to time.
 NEFT transaction Rs.10 lakhs and above requires two authorizers.
 Ceiling per transaction in Indo Nepal remittance - By cash Rs. 50,000/- and by account- Rs. 2 lacs,
Maximum number of remittance per annum- By cash 12, and by account- no restriction.
 In Indo Nepal remittance while initiating the NEFT in CBS 2057 option, the system is collecting the service
charges, related tax and cess. The service charge consists of 3 components- Originating Bank charge
(Canara Bank), Nepal SBI Bank Limited (NSBL) charge, State Bank of India (SBI) charge. Revised charges
are given in this circular.
 The remittance (indo Nepal remittance) will go to the State Bank of India (SBI). SBI will channelize the
funds to Nepal State Bank Ltd., (NSBL)
 Facility for a customer to do NEFT transactions through BC channel is also available.
 Facility for making Payment of credit card dues through NEFT is also available.
 The destination bank shall pay compensation at Current LAF Repo Rate plus two percent for the period
of delay for any reason whatsoever from the part of employee.
 In the event of delay in return of funds transfer instruction for any reason whatsoever, the destination
bank shall refund the amount together with interest at the current Repo Rate plus two per cent till the
date of refund.
 Minimum of Rs.1/= is required for sending a NEFT transaction.
 NEFT policy is issued under the authority of The Board of Directors of the Bank.
209/22 RTGS policy for the year 2022-23
 Integrated Treasury Wing is the RTGS Payment Gateway of our Bank
 RTGS Credit to the beneficiary’s account to happen within 30 minutes
 Beyond Rs.1 crore shall be released by ‘Releaser.’
 Above Rs.100 crores shall be ‘authorized by 2 persons’ and released by ‘Releaser’.
 Transaction with normal priority would be settled in off-setting mechanism, maximum of two attempts.,
i.e. the maximum time a transaction would be in “normal” queue is 10 minutes.
210/22 Non Credit Assets & Liabilities (Accounts) Elimination Policy FY 2022-23
 Elimination of unreconciled entries outstanding under back office heads namely unreconciled
interbank/inter branch accounts, branch adjustment accounts, sundry assets, sundry liabilities, sundry
deposits, Internal Office/Collection accounts.
 The following types of transactions are considered as “Non Credit Items”: Entries outstanding under
Sundry Liabilities, Sundry Deposits, Sundry Assets, Branch Adjustment Account and inter branch
reconciliation accounts, Un-reconciled entries under Bankers’ account, interbank Reconciliation
accounts, Internal Office/Collection Accounts, RTGS, NEFT, ATM and other types of electronic settlement
accounts, Balancing & Clearing Differences outstanding under various heads, Credit balance outstanding
in any loan account, Stale DDs/Gift Cheques/Overdue Pay Orders without full details, Amount
outstanding under margin on Bills/Guarantees, retention money, Entries outstanding in respect of claims
/ charges relating to Credit Card transactions, Interest Paid / Unapplied Interest in respect of wrong /
double credit of TTs, DDs, IBAs, RTGS, NEFT etc, Penal Interest/Charges paid on account of delayed
remittance of Direct/ Indirect Taxes and other collections etc., made to Government/Local Authorities,
Penalties imposed/Claims settled/Compensation paid as per the orders of Consumer Forum/Banking
Ombudsmen/Statutory Bodies/Government Departments/Courts/Regulatory authorities such as SEBI,
RBI, IRDA etc, Cash shortage observed by Reserve Bank of India, if any, in remittances made by Currency
Chests, Locker Rent in arrears, Income/Commission/Service Charges/Out of pocket expenses/Annual
Fees and other revenues due to the Bank but not reckoned in the books/not recoverable, on account of
various reasons are to be “Marked Off” and the same shall be treated as Non Credit Item for exercising
the above powers, Interest Subsidy/Subvention amount that could not be credited to party’s account as
such account being closed, Unreconciled balances outstanding under non implemented GLs, ATM Excess
Cash/surplus funds credited to SL ,

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 Canara Institute of Bank Management, Manipal

 Any other item of Non Credit nature, Non-credit entries outstanding which can be attributed to parties
having loan/credit liability with us shall not be considered as non-credit items and such entries are to be
considered along with loan liability as per extant guidelines.
 Powers of the Committees/Delegated Authorities (Other than DEA Fund entries):
Name of the Committee / Delegated WRITE OFF WRITE BACK
Authority
MC Full Powers
MD&CEO-AC 10,00,000 25,00,000
ED-AC 5,00,000 20,00,000
5 CGMs/GMs-AC 3,00,000 15,00,000
CGM/GM–AC(HO) 2,00,000 10,00,000
CGM/GM–AC(CO) 1,50,000 5,00,000
DGM(CO/HO)-AC 75000 2,00,000
AGM/DM OVERSEEING(CO/HO) 25000 50000
DGM-Heading R.O 25000 50000
AGM/DM-Heading R.O 10000 25000
211/22 ATM/BNA/Recyclers Cash Transaction Dispute and Exception Handling Policy for FY 2022-23
 There are three types of debit card transactions in ATM ON US, Issuer Transactions, and Acquirer
Transactions
 On US Transactions: (Transactions by our Card Holders in our ATMs)
 ISSUER Transactions (Our Customer Transaction in Other Bank ATMs)
 Acquiry Transactions (Other Bank Customers transacting in our ATMs)
 The Transactions lodged in CCR package are uploaded in Bharat Clearing & Settlement System (BCS)
portal of M/s National Payment Systems of India (NPCI)/Master/VISA to claim the amount from other
banks.
 Maximum time allowed for lodging the claim with other bank is 60 days from the date of transaction.
 If claims of unauthorized transactions are lodged under failed transactions in CCR package bank will lose
the right to raise a chargeback under liability shift.
 Liability Shift: In case of skimmed card of our bank is used in NON EMV ATM of other bank, the transaction
takes place in magnetic stripe mode. AS PER NPCI GUIDELINES, THE LIABILITY IS SHIFTED TO THE
ACQUIRER BANK.
 Pre-Arbitration for ATM Cash Transactions:
 In case the claim of our customer is rejected and customer is not satisfied with resolution provided by
the other bank, there is a provision to take up with other bank for Pre-Arbitration.
 The claim under pre arbitration can be lodged in CCR within 14 calendar days from the date of original
rejection of claim.
 Other bank as per NPCI guidelines has to provide resolution with 7 calendar days from the date of lodging
the claim by Reconciliation Wing, subject to RBI notification in this regard.
 Arbitration for ATM/BNA/Recyclers Cash Transactions.
 In case the claim of our customer is rejected and customer is not satisfied with resolution provided by
the other bank under pre-arbitration. There is a provision to take up with other bank for Arbitration. For
taking up for arbitration the request-cum-undertaking letter to be obtained from our customer only in
cases where EJ successful and bank can also raise a chargeback where it is felt that rejection by acquirer
bank is not correct.
 The claim under arbitration can be lodged in CCR within 14 calendar days from the date of rejection of
pre-arbitration claim.
 For lodging the case under arbitration there is a fee of Rs. 590.00 (including GST) to be paid by customer.
 TAT of 10 calendar days given to Banks for uploading of the documents. Also issuing bank can withdraw
the arbitration or Acquirer bank can accept the arbitration within 10 calendar days.
 In case issuing bank or Acquirer wish to pursue the dispute further for decision, NPCI will move the
dispute from Banks tray to NRP (NPCI Resolution Panel) and the decision is given based on the documents
shared by both Issuer and Acquirer Banks.
 Panel for Resolution of Disputes (PRD)
 In NRP stage if decision given favor to acquirer bank and customer still wishes to pursue the dispute,
then issuing bank can refer the case to PRD for review.
 Processing fee for referring the claim to PRD is Rs. 4500/- with applicable GST.
 If Issuer/Acquirer banks fail to raise the dispute/adjustment within the prescribed time limit, the same
can be initiated on Good faith basis through BCS portal of NPCI.
212/22 Internal Office Accounts (GLs & Internal Collection Accounts) Policy for FY 2022-23
 Internal Office Accounts: All GLs under Sundry Assets, Sundry Liabilities, Sundry Deposits, Branch
Adjustments & Inter Branch Advices and Internal Collection Accounts under product Codes 295 & 296
and other products without cheque book and mobile banking facility.
 Direct GLs are available for direct posting by the branch. It is classified into Implemented GLs and Non-
implemented GLs.
 Indirect GLs are accessed by the system internally through respective modules of FCC and FCR only.
 Presently each RO is permitted to open only one account under Product Codes 295 and 296 respectively.
The accounts shall be maintained at RO.

परिपत्र साि: Gist of Circulars 30

 Canara Institute of Bank Management, Manipal

 Account under product 295 - is to be used for routing any genuine bona-fide banking transactions like
Multiple salary credits, Routing of cheques issued/received in the name of the Bank/Branch, For receiving
inward RTGS/NEFT 296 - is to be used for making utility payments/Tax payment/Any other
statutory/Administrative purpose credits to be paid through On-line/e-payments.
 Cash transactions, NEFT/RTGS outward, UPI/IMPS and transferring of Fund from these accounts to loan
shall not be allowed.
 Systems & Procedure Committee shall permit opening or continuation of existing accounts.
213/22 Digital Transaction Reconciliation Policy for FY 2022-23
 To Ensure End to End Reconciliation, settlement & Dispute functions for the following Digital Channels
 Debit Cards (RuPay, Visa & MasterCard)
 Credit Card
 Prepaid Card
 ITPC (International Travel Prepaid Card)
 UPI (Unified Payment Interface)
 IMPS (Immediate Payment System)
 AEPS (Aadhaar Enabled Payment System)
 BBPS (Bharat Bill payment System)
 Merchant POS Acquiring Transactions (MePOS)
 Payment Gateway Aggregator Transactions
 Settlement of transactions are processed as per Card network guidelines on T+1 basis
 Turnaround time is T+5 days for VISA & RuPay and T+7 for MasterCard : at POS & ECommerce/Online
locations
NFS Network- Issuer ATM Withdrawal transactions :
 For raising Chargeback (First Level): 60 days from the next date of transaction
 For raising Pre-arbitration (Second level): Within 14 days from the date of rejection of Chargeback stage
 For raising Arbitration (Final level): Within 14 days from the date of rejection of Pre-arbitration stage.
(fee applicable)
 For raising Good faith Chargeback: After 60 days and within 120 days from the next date of transaction.
 For raising Counterfeit / Fraud Chargeback: 60 days from the next date of transaction
For Rupay Network- (Issuer POS / ECOM transactions) :
 For raising Chargeback (First Level): 60 days from the next date of transaction.
 For raising Pre-arbitration (Second level): Within 30 days from the date of rejection of Chargeback stage
 For raising Arbitration (Final level): Within 15 days from the date of rejection of Pre-arbitration stage.
(fee applicable)
For VISA Network- (Issuer POS / ECOM transactions):
 For raising Chargeback: 120 days from the date of transaction.
 For raising Pre-arbitration (Second level): - Within 30 days from the rejection of chargeback.
 For raising Arbitration (Final level): – Within 10 days from the date of rejection of Pre arbitration
 For raising Counterfeit / Fraud Chargeback: 120 days from the date of transaction
For MASTERCARD Network- (Issuer POS / ECOM transactions):
 For raising Chargeback (First Level): 120 days from the date of transaction.
 For raising Pre-arbitration (Second level): Within 45 days from the date of second presentment.
 For raising Arbitration (Final level): 75 calendar days from the date of second presentment.
 For raising Counterfeit / Fraud Chargeback: 60 days from the date of transaction.
 Settlement for Non-Card based Transactions are to be processed as per NPCI guidelines usually on T+1
basis or in multiple settlement cycles per day
 Settlement for Payment Gateway Transactions are to be processed on T+1 working day basis
For AePS Network- (Issuer Aadhaar Enabled payment System transactions):
 For raising Chargeback (First Level): 60 days from the next date of transaction
 For raising Pre-arbitration (Second level): Within 15 days from the date of rejection of Chargeback stage
 For raising Arbitration (Final level): Within 21 days from the date of rejection of Pre-arbitration stage.
 For raising Good faith Chargeback: After 60 days and within 120 days from the next date of transaction.
For IMPS Network- (Issuer Immediate Payment System transactions):
 For raising Chargeback (First Level): 60 days from the next date of transaction
 For raising Pre-arbitration (Second level): Within 35 days from the date of rejection of Chargeback stage.
For UPI Network- (Issuer Unified payment Interface transactions)
 For raising Chargeback (First Level): 180 days from the next date of transaction
 For raising Pre-arbitration (Second level): Within 15 days from the date of Re-Presentation by Acquiring
Bank
 For raising Arbitration (Final level): Within 15 days from the date of rejection of Pre-arbitration stage
 Merchant should be categorized as ‘Risky Merchant’ if the charge back ratio (Ratio of number of
Chargeback received to Total number of transactions) reaches 2% during the Quarterly review.
 Redressal of Customer Complaints: T+1 days
Disaster Recovery Drill should be conducted by the Wing once in Six months to test the efficacy of this
DR setup. The RTO for Reconciliation solution is Two Hours and the RPO is 30 Minutes.
214/22 Submission of STR-18 (Statutory Return18: Hindi Report) for March 2022 Quarter through online package
under SAS

परिपत्र साि: Gist of Circulars 31

 Canara Institute of Bank Management, Manipal

215/22 Merchant Enrolment Policy for FY 2022-23

 Facilitating payment settlement with card between the payer and payee is called as acquiring a card
transaction.
 Card transactions acquired in different ways, POSEDC Machines/Bharat QR Code/MPOS/UPI, ATMs
Internet/Ecommerce, Mail Order, Telephone Order, Interactive Voice Response System (IVRS).
 Standard MDR & Standard rent shall be fixed by DBS Wing from time to time based on review of Merchant
Acquiry business and as per RBI/MOF guidelines.
 As per RBI/MOF guidelines, the MDR charges on Rupay debit cards are waived with effect from 01.01.2020
Variant Physical POS QR Code
For Rupay debit cards irrespective NIL NIL
of merchant category and
transaction value
For debit cards powered by VISA Not exceeding 0.40% Not exceeding 0.30%
and MasterCard, + GST (MDR cap of + GST (MDR cap of
i) For Small Merchants (Turnover Rs.200/- per Rs.200/- per
upto Rs,.20 Lakhs during the transaction). transaction).
previous financial year).
ii)For Other Merchants (Turnover Not exceeding 0.90% Not exceeding 0.80%
above Rs.20 Lakhs during the + GST (MDR cap of + GST (MDR cap of
previous financial year). Rs.1000/- per Rs.1000/- per
transaction transaction)

Rent for POS (Risk categorized as per CIC) Sanctioning Authority

Standard Rate for Low, Normal and Moderate Risk Branch Head
merchant
Concessional Rate up to 100% for Low, Normal and RO Head
Moderate Risk merchants
Standard Rate and Concessional Rate up to 100% for Circle Head
High Risk merchants

 Merchants where standard Rent and MDR is charged / sanctioned will be extended with the below
concessions based on the monthly turnover in POS terminals

Turnover in POS terminal in a particular Concession in Rent

Month
3 lakhs to 5 lakhs 50% of standard Rate
Above 5 lakhs 100% waiver in Rent

 COs/ROs invariably shall verify the “Negative Verification report from VISA / MasterCard network & NPCI”
(available online) before sanctioning and ensure that ME’s name is not appearing in the list.
 Cash @ pos facility is an additional avenue provided to the debit card holders for availing cash withdrawal
facility from the Point of Sale Terminals of identified MEs.
 The minimum amount of withdrawal will be Rs.100/- and thereafter in multiples of Rs.100/- subject to
maximum of Rs 1000/- per day per debit card in Tier I & II Cities and Rs.2000/- in other centres.
 As per the existing guidelines, for enrolling the customer as our ME one year satisfactory dealing is
mandatory and in exceptional cases the same can be relaxed by the sanctioning authority.
 Merchant will be categorized as ‘Risky Merchant’ if the charge back ratio (Ratio of number of Chargeback
received to Total number of transactions) reaches 2% or above during any quarter.
 The following transactions are classified as “High value”
 If the amount of a single transaction or total amount of more than one transaction done using a single
card is Rs.2.00 Lakhs or more per day per merchant in respect of all merchant categories other than
Jewellers & Travel agents.
 If the amount of a single transaction or total amount of more than one transaction done using a single
card is Rs.3.00 Lakhs or more per day per merchant in respect of merchant categories like Jewellers &
Travel agents.
 Reconciliation Wing would be settling the merchant transactions with the settlement amount to the
Merchants account on T + 1 day basis.
 If the merchant transactions are disputed as fraud and such fraud to sales ratio is more than 25% for a
given period, transactions amount will not be released till completion of 30 months from the date of
settlement.
BHIM Aadhaar PoS related Acquiry
 BHIM AadhaarPoS / BHIM Aadhaar Pay/ Aadhaar pay has been conceived by Govt. of India (GoI), Ministry
of Electronics and Information Technology (MeitY) as an extension of Financial Inclusion to on-board small
traders/Merchants to accept digital payments.
 The product works on the AePS platform.
 Merchants / Merchants Establishment(s) (ME) enrolled under BHIM Aadhaar PoS are referred in short as
MuBAP.

परिपत्र साि: Gist of Circulars 32

 Canara Institute of Bank Management, Manipal

 MDR CHARGES : NIL

 A rent of Rs. 50/- + GST per month for a period of three years is applicable for Merchant On-boarded by
issuing the Fingerprint scanners procured by Bank.
 BHIM Aadhaar Pay successful transactions have an interchange fee of 0.05% + taxes and Switching fee of
Rs. 0.25 (exclusive of taxes).
 Minimum per Transaction limit :R 10/-, Maximum per Transaction limit Rs. 10,000/-
 The daily and weekly transaction limit for Merchants is Rs.50,000/- and Rs. 2,00,000/- respectively.
 The daily and weekly transaction limit for customers is Rs.10,000/- and Rs. 50,000/- respectively
 BHIM QR related Acquiry -BHIM QR is a QR Code based payment collection mechanism for the Merchant
to accept payment for the Goods/Services rendered.
 MDR Charges : For offline/online transactions – waived
 There is NO rental charge for the QR Codes delivered to the Merchants
216/22 Reconciliation and usage of Internal Office accounts
217/22 Master Circular on Lead Bank Scheme
 Our Bank has been assigned with: State Level Banker’s Committee (SLBC) Convenorship in two states i.e.
Karnataka and Kerala and Union Territory Level Banker’s Committee (UTLBC) Convenorship in
Lakshadweep.
 Our Bank has been assigned with: Lead Bank responsibility in 60 districts across 8 states and 2 Union
Territories viz. Andhra Pradesh (5), Bihar (1), Delhi (3), Haryana (3), Lakshadweep (1), Karnataka (15),
Kerala (7), Tamil Nadu (7), Telangana (4) & Uttar Pradesh (14) comes under 14 Circles of the Bank.
 Shri F. K. F. Nariman (Chairmen, Nariman Committee) RBI, endorsed the idea of an ‘Area Approach’ and
recommended Lead Bank concept. Pursuant to the above recommendations, the Lead Bank Scheme was
introduced by the Reserve Bank of India in December 1969. Lead Bank Scheme was introduced by the
Reserve Bank of India in December 1969.
 CD Ratio, Review of Districts with CD Ratio below 40% and working of Special Sub-Committees of the
DCC (SSC).
 The Government of India, in the Union Budget 2016-17, had announced its resolve to double the income
of farmers by 2022.
218/22 ATM policy for the year 2022-23
 ATMs installed in a radius of 500 meters from branch premises shall be treated as deemed on-site ATM
 ATM cash withdrawal: Any number of transactions with a per day per card limit of Rs.40,000 for Standard
/ Classic /Elite Cards & Rs.50,000/- for Platinum/Business Cards.
 Fast Cash Menu – Rs.500, 1000, 2000, 4000, 5000, 10000 & 15000/- and can vary from time to time.
 Up to 50 Pieces of Notes in Diebold and 40 Pieces in NCR machines will be dispensed in one transaction.
 Minimum amount of cash withdrawal is Rs.100/- and thereafter in multiples of Rs.100/-
 OTP based cash withdrawal at our ATMs for a per day limit of above Rs. 10000/-.
ON-US (our ATMS by our card holders)
For Customers For Senior Citizens For Staff
Free txns in a calendar month
(Financial and/or Non financial) 6 8 10
Charges above free transaction Rs 20/ + GST per transaction
(Financial)
Charges above free transaction Rs 5/- + GST per transaction
(Non Financial)
 free transactions from other Bank ATMs/CRs 3 transactions in Metro centres and 5 transactions in non-
metro centers

Remote On-US (Our card holders using other Bank ATMs)

Metro Non Metro
Free txn in a calendar month (Financial and/ or
Non-financial) 3 5
Charges above free txn (Financial) Rs 21 + GST Rs 21 + GST
Charges above free txn (Non-Financial) Rs 10 + GST (No Rs 10 + GST (No
change) change)
 Funds can be transferred upto Rs.50,000/= per day subject to a maximum of Rs 2,50,000/- per month
through ATM to inter/intra bank accounts with the input of MMID and Mobile number of the beneficiary.
 E-donations: minimum of Rs 100 to a maximum of Rs 50,000/- can be made.
 Circle to ensure that the ATM site is having minimum floor area of 70–100 Sq.ft.
 For amount above Rs.20 lakhs and up to Rs.50 lakhs should be accompanied by at least one armed guard.
 Surprise verification of outsourced ATMs: 3 mths.
 Surprise verification of ATM once in 6 months in VLB by CM & in ELBs by SM.
 In very remote areas where avg. transaction is less than Rs.5000/- lower denominations to be calibrated
in ATMs Rs. 10/-, Rs. 20/-, Rs. 50/-, Rs. 100/-
 Cash recyclers: capacity of hlding upto 17300 currency notes.
 Acceptance of max. 300 notes in one go .
 Max. amount per transaction that can be deposited is Rs. 6,00,000/-

परिपत्र साि: Gist of Circulars 33

 Canara Institute of Bank Management, Manipal

 Whenever an ATM goes out of order and continues to remain down for more than 2 hours, an alert will
be triggered to Mobile Number of TOE-Circle. Alert will be triggered with a time interval of 30 minutes,
starts from 8.00 AM to 9.00 PM on all working days. The alerts for down ATM will not be repetitive.
 Whenever cash level in the ATM goes below Rs 1.00 lakh, an automated SMs/E-mail will be generated
and sent across to Branch-in-charge / CRA executive. Alerts will be triggered with a time interval of 2 hrs,
starts from 8.00 AM to 6.00 PM on all working days. Such alerts will be repetitive until cash level is
increased sufficiently.
 2nd ATM may be installed in the SAME LOBBY where the average transactions for the last 2 months are
above 250.
 ATMs which are more than 7 years old can be taken up for replacement: inventory details as on January
every year.
219/22 Revision of Interest Rates on Small Savings Schemes w.e.f 01.04.2022 to 30.06.2022, Q1 of FY 2022-23
220/22 Risk Weight, Loan to Value (LTV) and Margin for New Individual Housing Loans sanctioned on or after
01.04.2022
Category LTV Ratio Risk Weight % Standard
Provisioning
Upto Rs 30 lakh ≤ 80 35
≤ 80 & ≤ 90 50
Above Rs 30 lakh and up to Rs 75 lakh ≤ 80 35 0.25%
Above 75 lakh ≤ 75 50

Slab wise margins:

Amount of Housing Loan In case of New House / Flat & Old In case of Old House
House / Flat (Upto 10 years old) / Flat (> 10 years old)
Upto Rs 30 lakh 10
Above Rs 30 lakh and up to Rs 75 20
lakh 25%
Above 75 lakh 25
221/22 Document Handling, Digitization of records & retention policy for FY 2022-23
 Board of Directors shall drive the effective management of Document handling, Digitization of Records
and Retention Policy. Provide senior management with clear guidance and direction. Review the
strategies and arrangements regularly vis a vis the market changes, environmental factors, new
products activities and systems and if necessary revise them in the light of the analysis. Lay down
appropriate approval authorities depending on risk and materiality.
 Risk Management Committee (RMC) shall be responsible interalia for: Approve the framework given
in this policy to evaluate the risk and materiality of all existing and prospective arrangements.
Implementing Document handling, Digitisation of Records and Retention Policy management issues
delegated to it by the Board. Undertaking regular review of strategies and arrangements for their
continued relevance, and safety and soundness and making appropriate recommendations to the
Board.
 Operational Risk Management Committee (ORMC) shall be responsible interalia for: Permitting the
Policy and recommending the same to the Board of Directors for adoption. Acting as a technical
Committee to the Board of Directors. Reviewing the strategies & arrangements for their relevance and
safety & soundness and making appropriate recommendations to RMCB/Board.
 Chief General Managers/General Managers of various Wings shall be responsible for: Evaluating the
risks and materiality of all existing and prospective arrangements pertaining to their Wing. Preparing
list of activities pertaining to their wing and formulation of the procedures to be adopted by circles &
branches and offices based on the materiality of the activity and policy framework. Reviewing
periodically the effectiveness of strategies and arrangements.

Records/files Period of Preservation

Branch License / Branch shifting
Policy Matters
Records relating to owned Premises
Inventory Register
To be maintained permanently.
Investigation Reports
Files relating to Staff lapses where disciplinary action is
recommended
Register of Mortgages & Charges
Claim applications on account of deceased account To be preserved permanently.
holders
Records which relate to disputes or litigations in the Court Records to be preserved for 20 years
of Law after the disputes are over.
Records set out under Prevention of Money Laundering Records to be preserved for at least 5
(Amendment) Act, 2009 years from the date of transaction
between the bank and the client.

परिपत्र साि: Gist of Circulars 34

 Canara Institute of Bank Management, Manipal

Records set out under Prevention of Money Laundering Records should be maintained for at
(Maintenance of Records) Rules, 2005. least 5 years from the date of
cessation of transactions between
the bank and the client.
Unclaimed deposit To be maintained till the claim is
lodged and 20 years after it is settled.
Specified records and registers where customers/third 10 years from the date of transaction
parties‟ transactions are recorded between the Bank and the client.
Specified records and registers where the transactions 5 years immediately preceding the
are internal in nature current calendar year.
Records and registers for which preservation period is not A period ranging up to 5/3/2/1 years
prescribed by statute and the transactions can be tracked immediately preceding the current
with the help of details available in other records having calendar year.
longer period of preservation
Any written off loan account in which, fraud has been prior permission be obtained from
detected, or investigation is in progress and staff the competent authority for
accountability is ascribed. elimination of records irrespective of
the period since they are maintained.
In respect of Written off loan accounts, preservation of Preserved for a period of 10 years
the loan papers, files, registers. from the date of closure of loan a/c or
settlement of DICGC/ other claim, if
any, whichever is later.

Preservation of physical cheques as required The presenting branches should preserve the
under CTS . physical cheques in their custody securely for a
period of 10 years. The images of all the
government cheques paid should be preserved
by the drawee banks likewise for a period of 10
years.
Preservation of physical cheques/images of
Government Cheques paid by drawee 10 years.
branches.
Records of Transactions pertaining to Money
Changing Activities. 5 years.
Preservation of Counterfeit Notes received The branches should preserve the Counterfeit
from Police Authorities/Courts Notes for a period of three years from the date
of receipt from the Police Authorities/Courts.
Counterfeit notes, which are subject matter of
litigation in the court of law should be
preserved with the branch concerned for three
years after conclusion of the court case.

 Group A: Items to be necessarily held in FBR Strong Room/FBR Safe.

 Group B: Items to be held preferably either in FBR/Strong Room/FBR Safe or in Fire Resistant Record
Cabinet (which basically has a dual locking Arrangement).
 Group C : Items to be hold (either preferably in FBR Strong Room/FBR Safe/Fire Resistant Record Cabinet
or in cupboard with dual locking arrangement).

Bank has included a workflow for scanning and storing of documents in electronic under ‘Document
Management System’ which is already implemented.
 Proper records have to be maintained for recording the items that are kept in the records room (Records
Inward & Destroyed Register). All records older than 3 years that are not required for frequent reference
may be transferred to the old records under authentication of an Officer/Manager.
The Records Inward & Destroyed Register should be preserved permanently.
During RBIA, the Inspecting Officers are required to record their observations in their reports regarding
preservation and destruction of records. Irregularities noticed, if any, are to be followed up with the
concerned by the controlling authority for rectification. On yearly basis, as at the end July, Circle Offices
shall furnish the information in a structured format regarding grant of permission for disposal of old
records to Premises Policy & Administration Section of G A Wing. No record or document shall be
disposed notwithstanding the fact that the periodicity for which it is to be preserved has lapsed, if any
enquiry, claim or litigation is pending in respect of any information contained in such document or
record.
 At least two copies of the e-records should be retained at different locations.
222/22 International Travel Prepaid Card Policy for FY 2022-23
 Canara International Travel Prepaid Card kit shall contain two cards & respective PIN mailers, Primary
card & the backup card. In case the cardholder lose/misplace the primary card or the primary card is

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 Canara Institute of Bank Management, Manipal

damaged, the Backup card can be activated through International Travel prepaid card Web Package
provided to Branches (CBITPC Package)/ or calling call centre/ by logging in to the Customer portal
provided in the Bank’s website.
 card is a multi-currency prepaid card – the value of the card shall be paid up front.
 The Card is valid for 5 years.
 The Card is a non-personalized EMV CHIP Card with PIN/Signature.
 Bank may introduce any number of foreign currency wallets based on feasibility and market study.
 Where the card is used for transactions in a currency other than currency available in the card, cross-
currency rates at Visa / MasterCard/ NPCI specified rates may be applied. This rate may be marked up
by a rate as decided by the bank.
 The card can be used for making payments for online purchase, merchant outlets as well as to withdraw
cash from ATM abroad.
 Cancellation & refund of the card load or surrender/refund of unspent balance in the card shall be done
at Branches which are authorized to issue the card.
 Refund shall be permitted only after 10 days from the date of last transaction in the card for ensuring
accounting all transaction with the card.
 Report of unauthorized transactions is to be handled by Credit Card & Prepaid Card Reconciliation
Section, Reconciliation Wing in tune with Customer Protection Policy - Limited Liability of Customers.
 Maximum amount of load per individual during a calendar shall be as per the RBI / FEMA guidelines.
 The card cannot be used in India, Nepal, Bhutan, North Korea, Cuba & Iran. The list of exempted countries
may vary as per RBI guidelines.
 Cardholders can retain the unspent foreign exchange in the card up to USD 2000 or its equivalent in other
currency for future trips till expiry of the card, as per extant FEMA guidelines.
 Unspent currency in the card in excess of USD 2000 or its equivalent in other currencies needs to be
surrendered within 180 days of arriving in India.
223/22 Introduction of “handing over and taking over (HOTO) charge” a new portal in SAS package
224/22 Rates of interest on rupee loans and advances (MCLR, RLLR, Base Rate, STRLLR, EBLR1 and EBLR2) w.e.f.
07.04.2022
225/22 Credit Card Issuance to Retail Lending Customers
100% issuance of Credit Cards to Retail Loan customers who meet the eligibility criteria.
226/22 Government of India’s Annual Programme for the Implementation of Official Language Hindi for the year 2022
– 23
227/22 Credit Guarantee Fund Trust for Micro and Small Enterprises updated guidelines
 Wholesale Trade and Educational/Training Institution included as eligible activities
 There is no stipulation of maximum loan limit under Hybrid/Partial Collateral Security Model of CGTMSE.
 In respect of coverage of Working Capital limits, present/expected outstanding is required to be updated
by the Bank (subject to maximum of guarantee amount) every year for calculation of fee on outstanding
basis
228/22 CMR (CIBIL MSME RANK) guidelines linked to delegation of powers for MSME loans
 CIBIL MSME RANK (CMR) may be fetched in applicable cases, while drawing CIBIL’s Commercial CIRs
(Credit Information Reports), by selecting the checkbox enabled for generation of the same.
Branches/Offices shall opt for generation of CMR only in eligible cases, i.e. while sanctioning MSME
credit facilities (existing/new) with aggregate Loan quantum (Present & Proposed) of above Rs.10 lakhs
and upto Rs.10 crores. The functionality is implemented w.e.f 01.04.2022.
229/22 Risk Management System in bank - guidelines on country risk management - updated country risk
classification list as at 31/03/22- Russia classified under RCC – Restricted Cover Category
230/22 RBI Master Circular – Scheme of Penalties for Branches including Currency Chests for deficiency in rendering
customer service to the members of public
 Shortages in soiled note remittances and currency chest balances :-
i. For notes in denomination up to ₹50/- per piece in addition to the loss.
ii. For notes in denomination of ₹100 & above Equal to the value of the denomination per piece
in addition to the loss.
 Counterfeit notes detected in soiled note remittances and currency chest balances -Penalty at 100% of
the notional value of Counterfeit Notes, in addition to the recovery of loss to the extent of the notional
value of such notes, will be imposed under the following circumstances: a) When Counterfeit Notes are
detected in the soiled note remittance of the bank. If Counterfeit Notes are detected in the currency
chest balance of a bank during Inspection / Audit by RBI.
For cases of detection of Counterfeit Notes up to four (04) pieces in a single transaction, a consolidated
report in the prescribed format (Annex III) shall be sent by the Nodal Bank Officer to the police
authorities or the Nodal Police Station, along with the suspect Counterfeit Notes, at the end of the
month.
For cases of detection of Counterfeit Notes of five (05) or more pieces in a single transaction, the
Counterfeit Notes shall be forwarded immediately by the Nodal Bank Officer to the local police
authorities or the Nodal Police Station for investigation by filing FIR in the prescribed format (Annex IV)
 Mutilated notes (including deliberately cut notes and built-up notes) detected in soiled note remittances
and currency chest balances- ₹50/- per piece irrespective of the denomination in addition to the loss.

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 Non-compliance with operational guidelines by currency chests detected by RBI officials. Non-
functioning of CCTV, noncompliance with rules/guidelines pertaining to CCTV, recording preservation
period and related issues. Branch cash/documents kept in strong room (CC’s vault).Non-utilization of
Note Sorting Machines (NSMs) for sorting of notes (NSMs not used for sorting of high denomination
notes, i.e notes of denomination ₹100 and above, received over the counter or not used for sorting
notes remitted to chest/RBI - Penalty of ₹5000 for each instance of irregularity. Penalty shall be
enhanced to ₹10,000 in case of repetition/ recurrence of irregularity.
 Violation of any of the terms of agreement with RBI (for opening and maintaining currency chests) or
deficiency in service in providing exchange facilities, as detected by RBI officials e.g. a) Non-issue of coins
over the counter to any member of public despite having stock. b) Refusal by any bank branch to
exchange soiled notes/refusal by any currency chest branch to adjudicate mutilated notes tendered by
any member of public. c) Non-conduct of surprise verification of currency chest balances at (i) bimonthly
intervals by officials unconnected with the custody of currency chest and (ii) six-monthly. Intervals by
the officials from the Controlling Office. d) Denial of facilities/services to link branches/linked CCs of
other banks. e) Non acceptance of lower denomination notes (i.e. denomination of ₹50 and below)
tendered by members of public and linked bank branches. f) Detection by RBI of mutilated /counterfeit
notes in re-issuable packets prepared by the currency chest branches –Penalty of ₹10,000 for any
violation of agreement or deficiency of service. ₹5 lakh in case there are more than 5 instances of
violation of agreement/deficiency in service by the branch. The levy of such penalty shall be placed in
public domain.
 Non-replenishment of ATMs- Cash-out at any ATM of more than ten hours in a month will attract a flat
penalty of ₹ 10,000/- per ATM. In case of White Label ATMs (WLAs), the penalty would be charged to
the bank which is meeting the cash requirement of that particular WLA. The bank, may, at its discretion,
recover the penalty from the WLA operator.
231/22 Master Direction on Penal Provisions in deficiencies in reporting of transactions/ balances at Currency Chests
 The minimum amount of deposit into / withdrawal from currency chest will be ₹1,00,000 and thereafter,
in multiples of ₹50,000.
 The currency chests should invariably report all transactions through CyM – CC portal on the same day
by 7 pm.
 Penal interest shall be levied at the rate of 2% over the prevailing Bank Rate for the period of delayed
reporting/wrong reporting/non-reporting /inclusion of ineligible amounts in chest balances.
 Soiled note remittances to RBI shall not be shown as withdrawal by chest(s). In case such remittances to
RBI are wrongly reported as 'withdrawal', a penalty of ₹50,000 shall be levied irrespective of the value
of remittance and period of such wrong reporting.
 All currency chest diversions (both between chests of the same bank and between chests of different
banks) have to be reported through ‘Diversion Module’ of CyM-CC Portal. The CC sending the diversion
should initiate the diversion entry. The receiving CC should acknowledge the same. Diversions should
not be reported as deposit/withdrawal. A penalty of ₹50,000 shall be levied for any such wrong
reporting.
 In order to ensure proper discipline in reporting currency chest transactions, a flat penalty of ₹50,000
shall be levied on the currency chests for delayed reporting, irrespective of the value of net deposit.
232/22 RBI Master Circular – Facility for Exchange of Notes and Coins
 Where the number of notes presented by a person is up to 20 pieces with a maximum value of ₹5,000
per day, banks shall exchange them over the counter, free of charge.
 Where the number of notes presented by a person exceeds 20 pieces or ₹5,000 in value per day, banks
shall accept them against receipt, for value to be credited later. The probable date of payment shall be
informed to the tenderers on the receipt itself and the same shall not exceed 30 days.
 Where the number of notes presented by a person is more than 5 pieces but not exceeding ₹5,000 in
value, the tenderer shall be advised to send such notes to nearby currency chest branch by insured post
giving his / her bank account details or get them exchanged thereat in person.
 All other persons tendering mutilated notes whose value exceeds ₹5,000 shall be advised to approach
nearby currency chest branch. Currency chest branches receiving mutilated notes through insured post
shall credit the exchange value to the account of sender by electronic means within 30 days of receipt
of notes.
 The notes which are found to be deliberately cut, torn, altered or tampered with, if presented for
payment of exchange value shall be rejected. The details of such instances together with the name of
the tenderer, the number of notes tendered and their denominations shall be reported to the DGM/
GM, Issue Department, Reserve Bank of India under whose jurisdiction the branch falls. The matter shall
also be reported to local police in case a large number of such notes are tendered.
233/22 RBI Master Circular – Detection and Impounding of Counterfeit Notes
 Capital Cost: Reimbursement of 50% of capital expenditure subject to a ceiling of ₹50 lakh per currency
chest. In the North Eastern region up to 100% of capital expenditure is eligible for reimbursement subject
to the ceiling of ₹50 lakh.
 Revenue cost: Reimbursement of 50% of revenue expenditure for first 3 years. In the North Eastern
region 50% of revenue expenditure is eligible for reimbursement for first 5 years.
 Exchange of soiled notes – ₹2 per packet for exchange of soiled notes up to the denomination
of ₹50.

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 Adjudication of mutilated notes – ₹2 per piece .

 For distribution of coins ₹65/- per bag. An additional incentive of ₹10/- per bag shall be paid for coin
distribution in rural and semi urban areas on the submission of a Concurrent Auditor (CA) certificate to
this effect. The incentives shall be paid on the basis of net withdrawal from currency chest, without
waiting for claims from banks.
234/22 RBI Master Circular – Master Direction on Framework of Incentives for Currency Distribution & Exchange
Scheme for Bank Branches including currency chests based on performance in rendering customer service to
the members of public
 Capital Cost: Reimbursement of 50% of capital expenditure subject to a ceiling of ₹50 lakh per currency
chest. In the North Eastern region up to 100% of capital expenditure is eligible for reimbursement subject
to the ceiling of ₹50 lakh.
 Revenue cost: Reimbursement of 50% of revenue expenditure for first 3 years. In the North Eastern
region 50% of revenue expenditure is eligible for reimbursement for first 5 years.
 Exchange of soiled notes – ₹2 per packet for exchange of soiled notes up to the denomination of ₹50.
 Adjudication of mutilated notes – ₹2 per piece.
 For distribution of coins ₹65 per bag. An additional incentive of ₹10/- per bag shall be paid for coin
distribution in rural and semi urban areas.
235/22 Celebration of ‘April 2022' as SC/ST month–extending credit facilities to SC/STs borrowers in commemoration
of birth anniversary of Dr. B. R. Ambedkar.
236/22 Introduction of Video Conferencing (VC) Calendar
 Introduction of Video Conferencing (VC) sequencing portal under SAS - Various meetings can be clubbed
and held on same day so as to minimise time and maximise output.
 Introduction of Matrix for scheduling VC meetings-System generated Month-wise MIS at any time.
Centrally controlled and monitored VC setup. Better bandwidth management.
 Defined set of participants in VC meetings - Screen for all the officials in Head office to request for VC.
Screen for Research & Development section, SP& D Wing to view and approve /modify/reject screen for
Facility Management section, Technology Operation Wing to schedule, update VC details and modify
participants on request from initiator. MIS Reports based on the data entered by the initiator and other
stakeholders.
237/22 Policy on collection of Cheques /Instruments for the year 2022-23
 Arrangements for collection: Local Cheques: All cheques and other negotiable instruments payable
locally would be presented through the clearing system prevailing at the centre. Cheques deposited at
branch counters, received by Post, Courier and in collection boxes within the branch premises before the
specified cut off time will be presented for clearing on the same day. Banks are giving credit to the
customer's account on the NEXT DAY after clearing settlement takes place. Withdrawal of amounts so
credited would be permitted as per the cheque return schedule of the clearing house and wherever
applicable facility of high value clearing (same day credit) will be extended to customers.
 Bank branches situated at Centres where no clearing house exists, would present local cheques on
drawee bank across the counter and it would be the bank's endeavour to credit the proceeds at the
earliest. As the cut off time limit for acceptance of cheques for collection depends on the clearing cycle
of the respective centre, cut off time limit at each centre will be fixed, depending on the clearing
arrangement at that place and the same will be displayed at the branches. Bank shall permit usage of the
shadow credit afforded to the customers’ account immediately after closure of relative return clearing
and in any case, withdrawal shall be allowed on the same day or maximum within an hour of the
commencement of business on the next working day, subject to usual safeguards.
 Outstation cheques: Cheques drawn on other Banks at outstation centres will be normally collected
through our bank's branches/ offices at these centres. Where our Bank does not have a branch of our
own, the instruments would be preferably collected through any branch of Public Sector Bank other than
the drawee bank at that place, and if there is no branch of public sector bank, through any scheduled
bank or branch of any bank at that place. In the absence of the above, the cheque would be sent directly
to the drawee bank. Cheques drawn on Bank's own branches at outstation Centers will be collected using
the inter-branch arrangements in vogue. Branches connected through central processing arrangements
shall provide same day credit to its customers in respect of outstation instruments drawn on any of its
branches in the CBS network.
 Immediate Credit of Local/ Outstation Cheque/ Instruments & Payment of Interest on Delayed
Collection: In respect of local cheques immediate credit of Rs.15000/- will be extended only to those
eligible account holders on specific request. Not exceeding Rs.15000/- in respect of outstation cheques
to all the eligible account holders without any specific request from the account holder. Instant credit
will be extended in case of dividend warrants / Interest Warrants to all the eligible account holders
provided they are drawn on banks and payable on demand without any pre-condition.
 Purchase of Local Cheques, Drafts, etc., during suspension of Clearing: whenever clearing is suspended
and it is apprehended that the suspension may be prolonged, banks may temporarily accommodate their
constituents, both borrowers and depositors, to the extent possible by purchasing the local cheques,
drafts, etc., deposited in their accounts for collection, special consideration being shown in respect of
cheques drawn by Government departments/companies of good standing and repute, as also demand
drafts drawn on local banks. While extending this facility, banks would no doubt take into consideration

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 Canara Institute of Bank Management, Manipal

such factors as creditworthiness, integrity, past dealings and occupation of the constituents, so as to
guard themselves against any possibility of such instruments being dishonoured subsequently.
 Time frame for collection of local/ outstation cheques/ instruments: i. For local cheques presented in
clearing credit will be afforded as on the date of settlement of funds in clearing and the account holder
will be allowed to withdraw funds. ii. Cheques/instruments presented in high value clearing with the
minimum value of Rs 1 lakh shall be credited on the same day applicable only in areas covered by high
value/same day clearing. iii. For cheques and other instruments sent for collection to centers within the
country the following time norms shall be applied. a) Cheques presented at any of the State Capitals,
maximum period of 7 days. b) Major cities maximum period of 10 days. c) In all other centers, maximum
period of 14 days.
 Payment of interest on delayed collection of Outstation Cheques: As a part of the compensation policy
of the bank, the bank will pay interest to the customers on the amount of the collection instruments in
case there is delay in giving credit. a) Fixed Deposit rate for the corresponding period for the period of
delay beyond 7/10/14 days as the case may be in collection of outstation cheques. b) In the case of
extraordinary delay i.e. delays exceeding 90 days, interest will be paid at the rate of 2% above the
corresponding Term deposit rate. c) In the event the proceeds of cheque under collection was to be
credited to an overdraft/loan account of the customer, interest will be paid at the rate applicable to loan
account. For extraordinary delays, interest will be paid at the rate of 2% above the rate applicable to the
loan account. d) In case of delay in realization of local cheques, compensation at Savings Bank interest
rate shall be paid for the corresponding period of delay.
 Cheques/Instruments lost in transit/in clearing process or at paying banks' branch: the bank would
provide all assistance to the customers to obtain a duplicate instrument from the drawer of the cheque.
In case intimation regarding loss of instruments is conveyed to the customer beyond the time limit
stipulated for collection (7/10/14 days as the case may be), interest will be paid for the period exceeding
the stipulated collection period at the SB rate of interest. The bank would also compensate the customer
for any reasonable charges he/ she incurs in getting duplicate cheque/ instruments upon production of
receipt in the event the instrument is to be obtained from a bank/ institution who would charge fee for
issue of duplicate instrument and also reasonable charges incurred for stopping payment of the cheque.
If the cheque/instrument has been lost at the paying Bank’s Branch, the collecting Banker shall have a
right to recover the amount reimbursed to the customer for the loss of the cheque/instrument from the
paying Banker.
 Charging of Interest on cheques returned unpaid where Instant Credit was given: If a cheque sent for
collection for which immediate credit was provided by the Bank is returned unpaid, the value of the
cheque will be immediately debited to the account. The customer will not be charged any interest from
the date immediate credit was given to the date of return of the instrument unless the bank had
remained out of funds on account of withdrawal of funds. Interest, where applicable, would be charged
on the notional overdrawn balances in the account had credit not been given initially. If the proceeds of
the cheque were credited to the Savings Bank Account and were not withdrawn, the amount so credited
will not qualify for payment of interest when the cheque is returned unpaid. If proceeds were credited
to an overdraft/loan account, interest shall be recovered at the rate of 2% above the interest rate
applicable to the overdraft/loan from the date of credit to the date of reversal of the entry if the
cheque/instrument was returned unpaid to the extent the bank was out of funds.
 Collection of account payee cheque: bank shall collect account payee cheque for an amount not
exceeding Rs. 50,000/- to the account of cooperative societies account holders, if the payees of such
cheques are the constituent of such cooperative societies.
 Payment of Cheques/Drafts/Pay Orders/Banker’s Cheques: no payment if they are presented beyond the
period of three months from the date of such instrument.
 Payment of Interest for Delays in collection of bills: interest to the lodger for the delayed period in respect
of collection of bills at the rate of 2% p.a. above the rate of interest payable on balances of Savings Bank
accounts. The delayed period shall be reckoned after making allowance for normal transit period based
upon a time frame of 2 days each for (i) Dispatch of bills; (ii) Presentation of bills of drawees (iii)
Remittance of proceeds to the lodger’s bank (iv)Crediting the proceeds to drawer’s account.
 Delay in Re-presentation of Technical return Cheques and Levy of Charges for such Returns: Where the
customers are not at fault the cheques need to be re-presented without any recourse to the payee, and
such representation should be made in the immediate next presentation clearing not later than 24 hours.
 Cheque payable in Foreign Countries: (Monitored by Integrated Treasury Wing) - Cheques payable at
foreign centers where the bank has branch operations will be collected through that office. The services
of correspondent banks will be utilized in country/centers where the correspondent has presence.
Cheques drawn on foreign banks at centers where the bank or its correspondents do not have direct
presence, will be sent direct to the drawee bank with instructions to credit proceeds to the respective
Nostro Account of the bank maintained with one of the correspondent banks after taking into account
cooling periods as applicable to the countries concerned.
 Instant Credit: Subject to the satisfactory track record of the customer etc., immediate credit may be
given to the customer's account, without completion of the cooling period, on sighting the pass sheet
credit for clean instruments denominated in USD, GBP and EURO up to the equivalent of USD 10000.
 Positive Pay: (Monitored by Cash Management and Stationery Wing)- Positive Pay System is a process of
reconfirming the key details of high value cheques issued to the drawee Bank by the customers. Positive

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 Canara Institute of Bank Management, Manipal

Pay System enables customers to minimise / avoid cheque related frauds by sharing required details of
cheques above Rs.50000/- that are being issued.
 Force Majeure: The bank shall not be liable to compensate customers for delayed credit due to some
unforeseen event like civil commotion, sabotage, lockout, strike and other labour disturbances,
accidents, fires, natural disasters or other "Acts of God", war, damage to the banks' facilities or of its
correspondent Banks, absence of the usual means of communication or all types of transportation, etc.,
beyond the control of the Bank prevents it from performing its obligation within the specified service
delivery parameters.
238/22 Policy for Sustainable Development & Corporate Social Responsibility [SD & CSR] for the year 2022-23.
 CSR is an integration of business operations and values, whereby interests of all stakeholders including
investors, customers, employees, the community and environment is reflected in company‟s policies
and actions.
 Major initiatives of the Canara Bank under CSR have been the setting up of Trusts and Institutions i.e 1.
Canara Centenary Rural Development Trust 2. Canara Financial Advisory Trust. 3. Canara Golden Jubilee
Education Fund 4. Canara Relief & Welfare Society
 Companies to spend a minimum of 2% of their net profit on CSR activities as per companies act 2013.
 As per companies Act 2013, Constitute a CSR Committee of the Board with 3 or more Directors of which
at least one Director will be an independent Director if turnover of Rs.1000 crores or more OR a net
worth of Rs.500 crores or more OR net profit of Rs.5 Crore or more in any financial year.
239/22 Compensation Policy of the bank for FY 2022-23
 Unauthorized/ Erroneous Debit arising on fraudulent or other transactions: (Monitored by DBS & Recon
Wing) –
i. If the bank has raised an unauthorized/ erroneous direct debit to an account, the entry will be
reversed immediately on being informed of the erroneous debit, after verifying the position In
the event the unauthorized/erroneous debit has resulted in a financial loss for the customer by
way of reduction in the minimum balance applicable for payment of interest on savings bank
deposit or payment of additional interest to the bank in a loan account, the bank will
compensate the customer for such loss. Further, if the customer has suffered any financial loss
incidental to return of a cheque or failure of direct debit instructions due to insufficiency of
balance on account of the unauthorized/ erroneous debit, the bank will compensate the
customer to the extent of such financial losses.
ii. Verification of the entry reported to be erroneous by the customer does not involve a third
party, the bank shall arrange to complete the process of verification within a maximum period
of 7 working days. If involves a third party, the bank shall complete the verification process
within a maximum period of one month.
iii. Erroneous transactions reported by customer pertaining to credit card operations, the bank
shall provide explanation and, if necessary, documentary evidence to the customer within a
maximum period of 60 days.
iv. In case where neither the Bank is at fault nor the customer, but the fault lies elsewhere in the
system, the Bank will help in restoring the actual amount involved. As a gesture of goodwill and
to deal with the customers fairly, the Bank will compensate the customer with Rs.100/- per
Rs.5000/- of the amount involved, subject to a maximum of Rs.1000/- for each instance.
 ECS, direct debits, other debits to accounts, standing instructions, NEFT, RTGS, Internet Banking, Mobile
Banking and IMPS / UPI transactions: (Monitored by DIT/TO Wing & DBS Wing) –
i. Customer will be compensated to the extent of any financial loss the customer would incur on
account of delay in carrying out the instruction/ failure to carry out the instructions.
ii. The bank would debit the customer’s account with any applicable service charge as per the
schedule of charges notified by the bank. In the event the bank levies any charge in violation of
the arrangement, the bank will reverse the charges when pointed out by the customer subject
to scrutiny of agreed terms and conditions. Any consequential financial loss to the customer will
also be compensated.
iii. Where it is established that the bank had issued and activated a credit card without written
consent of the recipient, the bank would not only reverse the charges immediately but also pay
a penalty without demur to the recipient amounting to twice the value of charges reversed.
iv. The bank will undertake to pay compensation for the transactions initiated through Internet /
Mobile Banking / UPI as under: NEFT/ RTGS delay in Credit/return are compensated as per
existing RBI guidelines. At present for NEFT, it is current RBI LAF Repo Rate plus two percent and
current repo rate plus 2% for RTGS.
 In case of delay in crediting the beneficiary customer’s account or in retuning the non-credited amount
to the remitter in case of NEFT, bank is required to pay penal interest at the current RBI LAF Repo rate
plus two percent for the period of delay/ till the date of refund.
 In case a cheque has been paid after stop payment instruction is acknowledged by the bank, the bank
shall reverse the transaction and give value-dated credit to protect the interest of the customer. Any
consequential financial loss to the customer will be compensated such debits will be reversed within 2
working days of the customer intimating the transaction to the bank.
 Foreign Exchange Services: (Foreign Currency Cheques sent on collection): (Monitored by Integrated
Treasury Wing) - The Bank would not compensate the customer for delays in collection of cheques

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 Canara Institute of Bank Management, Manipal

designated in foreign currencies sent to foreign countries as the bank would not be able to ensure timely
credit from overseas banks. Time for collection of instruments drawn on banks in foreign countries differ
from country to country and even within a country, from place to place. The time norms for return of
instruments cleared provisionally also vary from country to country. Bank however, would consider
upfront credit against such instrument by purchasing the cheque/ instrument, provided the conduct of
the account has been satisfactory in the past. However, the bank will compensate the customer for
undue delays in affording credit once proceeds are credited to the Nostro Account of the bank with its
correspondent. Such compensation will be given for delays beyond one week from the date of credit to
Nostro Account/ due date after taking into account normal cooling period stipulated. The compensation
in such cases will be worked out as follows:
i. Interest for the delay in crediting proceeds as indicated in the collection policy of the bank. Such
compensation shall be paid at the rate of interest applicable to NRE SB a/c in respect of NR -
clients and domestic SB a/c in case of resident customers.
ii. Compensation for any possible loss on account of adverse movement in foreign exchange rate .
 Payment of Interest for delayed Collection of Local and Outstation Cheques –
i. In case of extraordinary delay, i.e. delays exceeding 90 days interest will be paid at the rate of
2% above the corresponding Term Deposit rate.
ii. In the event the proceeds of cheque under collection were to be credited to an overdraft/ loan
account of the customer, interest will be paid at the rate applicable to the loan account. For
extraordinary delays, interest will be paid at the rate of 2% above the rate applicable to the loan
account.
iii. In case no rate is specified in the Cheque Collection Policy for delay in realization of local
cheques, compensation at Savings Bank interest rate shall be paid for the corresponding period
of delay.
iv. Time frame for collection of cheques drawn on State Capitals/ major cities/ other locations to
be 7/10/14 days respectively. If there is any delay in collection beyond this period, the interest
shall be the interest rate on Fixed Deposits on the corresponding maturity.
 Cheques / Instruments lost in transit/ in clearing process or at paying banks' branch: (Monitored by Cash
Management Wing)-
i. In respect of cheques lost in transit or in the clearing process or at the paying Bank’s branch, the
bank should immediately bring the same to the notice of the account holder.
ii. In case of cheque/ instrument lost, onus of such loss lies with the collecting Banker and not the
account holder.
iii. The bank would also compensate the customer for any reasonable charges he / she incurs in
getting duplicate cheque/ instruments upon production of receipt in the event the instrument
is to be obtained from a bank/ institution who would charge fee for issue of duplicate instrument
and also reasonable charges incurred for stopping payment of the cheque. The Bank shall
reimburse the account holder related expenses for obtaining duplicate instruments and also
interest at SB rate for reasonable delays occurred in obtaining the same.
iv. In case intimation regarding loss of instrument is conveyed to the customer beyond the time
limit stipulated for collection (7/10/14 days as the case may be) interest will be paid for the
period exceeding the stipulated collection period.
v. In addition, the Bank will pay interest on the amount of the cheque for a further period of 15
days at Savings Bank rate to provide for likely further delay in obtaining duplicate cheque/
instrument and collection thereof.
vi. If the cheque/ instrument has been lost at the paying Bank’s Branch, the collecting Banker shall
have a right to recover the amount reimbursed to the customer for the loss of the cheque/
instrument from the paying Banker.
 Payment of Interest for Delays in collection of bills: (Monitored by Cash Management Wing) The lodger’s
bank shall pay interest to the lodger for the delayed period in respect of collection of bills at the rate of
2% p.a. above the rate of interest payable on balances of Savings Bank accounts. The delayed period
shall be reckoned after making allowance for normal transit period based upon a time frame of 2 days
each for (i) Dispatch of bills; (ii) Presentation of bills of drawees (iii) Remittance of proceeds to the
lodger’s bank (iv) Crediting the proceeds to drawer’s account. To the extent the delay is attributing to
the drawee’s bank, the lodger’s bank may recover interest for such delay from that bank.
 Delay in Re-presentation of Technical return Cheques and Levy of Charges for such Returns: (Monitored
by Cash Management Wing) Bank shall levy cheque return charges only in cases where the customer is
at fault and is responsible for such returns. Where the customers are not at fault the cheques need to
be re-presented without any recourse to the payee, such representation should be made in the
immediate next presentation clearing not later than 24 hours (excluding holidays) with due notification
to the customers of such representation through SMS alert, email etc.
 Violation of the Code by Banks Agent: (Monitored by SP & D Wing) - bank shall take appropriate steps
to investigate and to handle the complaint and to compensate the customer within 7 days from the date
of receipt of the complaint for financial losses, if any.
 Transaction of “at par instruments” of Co-operative Banks by Commercial Banks: (Monitored by GA
Wing) - the bank will not honour cheques drawn on current accounts maintained by other banks with it
unless arrangements are made for funding cheques issued. Issuing bank should be responsible to

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 Canara Institute of Bank Management, Manipal

compensate the cheque holder for nonpayment/ delayed payment of cheques in the absence of
adequate funding arrangement.
 ATM: (Monitored by Recon Wing) It is mandatory for bank to reimburse the customer the amount
wrongfully debited on account of failed ATM within a maximum period of T+5 days from the receipt of
the complaint. For any failure to re-credit the customer's account beyond T+5 days from the date of
receipt of the complaint, bank shall pay compensation of Rs 100/- per day.
 Any customer is entitled to receive such compensation for delay, only if a claim is lodged with the issuing
bank within 30 days of the date of the transaction.
 Duplicate draft will be issued within a fortnight from the receipt of such request from the purchaser
thereof. For delay beyond the above stipulated period, interest at the rate applicable for Fixed Deposit
for corresponding period will be paid as compensation to the customer for such delay.
 Lenders liability; Commitment to Borrowers: (Monitored by SP & D Wing)- the Bank would return to the
borrowers all the securities/ documents/ title deeds to mortgaged property within 15 days of repayment
of all dues agreed to or contracted. The bank will compensate the borrower for monetary loss suffered,
if any due to delay in return of the same. In the event of loss of title deeds to mortgage property at the
hands of the banks, the compensation will cover out of pocket expenses for obtaining duplicate
documents plus a lump sum amount as decided by the Bank.
 Delay in Payment of Pension: (Monitored by GA Wing, HO) In view of the delay in revision of pension
and payment of arrears to pensioners including non State resident pensioners, the Bank shall
compensate the pensioners' for the delayed period beyond the due date at 8% penal interest (as per RBI
instructions dated 13.04.2012). Further the compensation shall be credited to the pensioners' accounts
automatically without any claim from the pensioners on the same day when the bank affords credit for
revised pension/ arrears in respect of all delayed pension payments made since October 2008.
 Minimum balance in savings bank accounts: (Monitored by SP & D Wing)- Bank shall inform, at least one
month in advance, the existing account holders of any charges in the prescribed minimum balance and
charges that may be levied if the prescribed minimum balance is not maintained.Wef.16.05.2014, bank
shall not permit to levy penal charges for non-maintenance of minimum balances in any inoperative
account.
 Compensation in case of delay in collection of cheques denominated in Foreign Currency: (Monitored
by Integrated Treasury Wing)-
(a). The time limit for payment of inward remittances exceeding USD 10,000 or its equivalent is two working
days from the date of receipt of credit advice/ Nostro statement. For inward remittances up to USD 10000
or equivalent in other foreign currencies, payment is to be executed immediately on receipt of credit advice/
pass sheet credit. In case of delay, the Bank shall also pay the beneficiary interest @ 2% over its Savings Bank
rate. The bank shall also pay compensation for adverse movement of exchange rate, if any. Saturday will not
be treated as a working day.
However, in cases of inward remittance exceeding USD 10000 or equivalent, if intimation is sent to the
beneficiary within 2 working days from the date of receipt of credit advice/nostro statement no
compensation is payable.
 If the FITT voucher in Foreign Currency & the amount of inward remittance is not credited to the
beneficiary's account within the time limit stipulated as above, compensation is payable to the
beneficiary of the inward remittance as under:
(i) By way of interest at 2% over the applicable Saving Bank rate provided the payment order is
authenticated and contains full details of the beneficiary.
(ii) If the FOREX Rate moves adversely i.e. if TT Buying Rate prevailing at 12 Noon on the day on
which the amount is due for credit is higher than TT Buying Rate prevailing at 12 Noon on the
day of actual payment, the difference between these two rates is payable to the beneficiary of
the inward remittance.
(iii) The compensation is also payable by way of payment of interest though the inward remittance
denominated in Indian Rupees is not paid to the beneficiary as per the above provisions.
(iv) Customers would be compensated for delay in crediting the proceeds of foreign currency
instruments payable abroad/ in India and sent on collection basis.
(v) Such compensation would be paid at the rate of interest applicable to NRE SB accounts in
respect of NRI-clients and domestic SB account in the case of resident customers, for the delays
beyond prescribed period for various transactions which are as under:
a. Personal cheques/ drafts payable in the country of currency – if proceeds are not credited
within 21 days (Cash letter with recourse)/ 31 days (Collection without recourse).
b. Personal cheques/ drafts payable in the country other than in the currency of the country –
If proceeds are not credited within 45 days (Cash letter with recourse)/ 51 days (Collection
without recourse).
 Compensation to Retail Individual Investors (RIIs) in an IPO (Monitored by SP & D Wing) –
Being Self Certified Syndicate Bank, our Bank adopted the policy for payment of compensation to Retail
Individual Investors as per SEBI guidelines. For calculation of minimum compensation payable to
investors in scenarios :-
a) Failure on part of the Self Certified Syndicate Banks (SCSBs) to make bids in the concerned Exchange
system even after the amount has been blocked in the investors’ bank account with such SCSB. b)
Failure on part of the SCSB to process the ASBA applications even when they have been submitted

परिपत्र साि: Gist of Circulars 42

 Canara Institute of Bank Management, Manipal

within time. c) Any other failures on part of an SCSB which has resulted in the rejection of the
application form.
Minimum compensation payable to investors :-
a) The opportunity loss suffered by the investor due to non-allotment of shares;
b) The number of times the issue was oversubscribed in the relevant category
c) The probability of allotment; and d) The listing gains if any on the day of listing.

Compensation = (Listing price* - Issue Price) X No. of shares that would have been allotted if bid
was successful X Probability of allotment of shares determined on the basis of allotment.
In the case of issues which are subscribed between 90-100%, i.e. non oversubscribed issues, the
applicants would be compensated for all the shares which they would have been allotted.
No compensation would be payable to the applicant in case the listing price is below the issue price.
Any applicant whose application has not been considered for allotment, due to failure on the part
of the Bank, shall have the option to seek redressal of the same within three months of the listing
date. On receipt of such application/s, Bank would be required to resolve the same within 15 days,
failing which interest at the rate of 15% per annum for any delay beyond the said period of 15 days
to be paid to the complainant.

 Failed Transactions (Monitored by Recon Wing) Harmonisation of Turn Around Time (TAT) and
customer compensation for failed transactions using authorised Payment Systems:

Description of the incident Framework for auto-reversal and compensation

Timeline for autoreversal Compensation payable
Automated Teller Machines (ATMs) including Micro-ATMs
Customer’s account debited Pro-active reversal (R) of failed ₹ 100/- per day of delay
but cash not dispensed. transaction within a maximum beyond T + 5 days, to the credit
of T + 5 days of the account holder.
Card Transaction
Card to card transfer Transaction to be reversed (R) ₹ 100/- per day of delay
Card account debited but the latest within T + 1 day, if credit beyond T + 1 day.
beneficiary card account not is not effected to the
credited. beneficiary account.
Point of Sale (PoS) (Card
Present) including Cash at PoS
Account debited but
confirmation not received at
merchant location i.e., charge- Auto-reversal within T + 5 days. ₹ 100/- per day of delay beyond
slip not generated. T + 5 days.
Card Not Present (CNP) (e-
commerce) Account debited
but confirmation not received
at merchant’s system.
Immediate Payment System (IMPS)
Account debited but the If unable to credit to ₹100/- per day if delay is
beneficiary account is not beneficiary account, auto beyond T + 1 day.
credited. reversal (R) by the Beneficiary
bank latest on T + 1 day.
Unified Payments Interface (UPI)
Account debited but the If unable to credit the ₹100/- per day if delay is
beneficiary account is not beneficiary account, auto beyond T + 1 day.
credited (transfer of funds). reversal (R) by the Beneficiary
bank latest on T + 1 day
Account debited but Auto-reversal within T + 5 days. ₹100/- per day if delay is
transaction confirmation not beyond T + 5 days.
received at merchant location
(payment to merchant).

 Role of the Customer Service Committee :

i. Formulation of Compensation Policy
ii. Issues such as the treatment of death of a depositor for operations of his account
iii. Product approval process with a view to suitability and appropriateness
iv. Annual survey of depositor satisfaction
v. Tri-enniel audit of such services.
vi. Monitoring the implementation of awards under the Banking Ombudsman Scheme.
 The Committee could also examine any other issues having a bearing on the quality of customer service
rendered. complaints/ grievances resolved by Banking Ombudsmen of the various States.
240/22 Customer Protection for Limiting Liability of customers in electronic banking transactions (EBT)

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 Customers not liable for amounts lost in fraudulent/ unauthorised transactions where default not
attributed to the customers, if reported to the Bank within 3 working days.
 Limited liability of a customer in case of unauthorized EBT.
 Mechanism set out to determine customer liability arising out of unauthorized transactions based on
time taken to report such transactions to the Bank.
 Bank to shadow reverse credit amounts lost by customers through unauthorized transactions within 10
working days from notification by the customer. Onus of proving liability of customers arising out of
unauthorised transactions lies with the Bank except in cases of negligence of customer
241/22 Customer Rights Policy for FY 2022-23
 The Customer Rights Policy spells out the rights of the Customers and also the responsibilities.
 Right to Fair Treatment – the customer shall not be unfairly discriminated against on grounds such as
gender, age, religion, caste and physical ability when offering & delivering financial products.
 Right to Transparency, Fair and Honest Dealing - The Bank shall make every effort to ensure that the
contracts or agreements it frames, are transparent, easily understood by and well communicated to, the
common person. The product’s price, the associated risks, the terms and conditions that govern use over
the product’s life cycle and the responsibilities of the customer and financial service provider, should be
clearly disclosed. The customer should not be subject to unfair business or marketing practices, coercive
contractual terms or misleading representations. Over the course of their relationship, the financial
services provider cannot threaten the customer with physical harm, exert undue influence, or engage in
blatant harassment.
Communicate unambiguously the information about – a. Discontinuation of particular products b. Relocation of
their offices c. Changes in working hours d. Change in telephone numbers e. Closure of any office or branch With
advance notice of at least 30 days.
 Right to Suitability – The products offered should be appropriate to the needs of the customer and based
on an assessment of the customer’s financial circumstances and understanding. Not compel a customer
to subscribe to any third party products as a quid-proquo for any service availed from the Bank
 Right to Privacy-Customers’ personal information should be kept confidential. Except in the following -
a) The customer has authorized such disclosure explicitly in writing b) Disclosure is compelled by law/
regulation; c) Bank has a duty to the public to disclose i.e. in public interest d) Bank has to protect its
interests through disclosure e) It is for a regulatory mandated business purpose such as disclosure of
default to credit information companies or debt collection agencies.
 Right to Grievance Redress and Compensation – The customer has a right to hold the financial services
provider accountable to have any valid grievances redressed.
242/22 Death claim settlement policy of the bank for FY 2022-23
 Bank has adopted a simplified Policy and Procedure for enabling speedy and hassle free settlement in
Claim applications received by its Domestic Branches in respect of deceased customers as well as persons
reported missing from their nominees or legal heirs.
 TYPES OF SETTLEMENTS:
(a) Settlement based on Nomination
(b) Settlement based on production of Legal Representation (Succession Certificate, Will, Letter of
Administration etc); and
(c) Settlement in the absence of any Nomination or Legal Representation
 PROCEDURE FOR SETTLEMENT OF CLAIMS BASED ON NOMINATION:
 In the deposit account / locker / Safe Custody where the deceased account holder has made a valid
nomination in terms of Banking Companies (Nominations) Rules, 1985 and the same has been duly
registered on the bank’s records in favour of the nominees in conformity with the said Rules, the
Branches shall make payment of the balance amount / delivery of the contents of the locker in favour of
the nominee.
 It is hereby clarified that payment / delivery of articles to the nominee is made only as a trustee of the
legal heirs / legatee(s) of the deceased customer.
 By settling the claim with respect to the deposits/ Locker maintained by the deceased depositor(s) /
Hirer(s) in favour of the Nominee shall discharge the Bank from all liabilities in this regard.
PROCEDURE FOR SETTLEMENT OF CLAIMS BASED ON PRODUCTION OF LEGAL REPRESENTATION
 Settlement based on Legal Representation shall include settlements based on Succession Certificate,
Probated / Un Probated Will or Letter of Administration.
 Succession certificate is a document issued by a competent court (civil) certifying a rightful person to be
the successor of a deceased person. It is a document that gives authority to the person who obtains it,
to represent the deceased for the purpose of collecting debts and securities due to him or payable in his
name. It establishes the legitimacy of the heirs and gives them the authority to get the deposits and other
assets transferred in their names.
 A probate means a copy of a Will certified under the seal of a Court of competent jurisdiction with a
grant of administration to the estate of the testator (Section 2(f) of Indian Succession Act 1925). A
Probate is conclusive as to the representative title of the Executor to represent the estate. It is also
conclusive proof as to the due execution of the Will and as to the genuineness of the Will. The effect of
grant of the Probate is that it establishes the factum of the Will and the legal character of the Executor
and all the property both movable and immovable of the deceased Testator vests in the Executor as from

परिपत्र साि: Gist of Circulars 44

 Canara Institute of Bank Management, Manipal

the date of the death and as long as the grant stands, the Executor is the legal representative of the
deceased.
 It may be kindly noted that Probate is not mandatory in the case of Hindus, Buddhists, Sikhs or Jains,
whose Wills are made outside the Presidency towns and in the case of Mohammedans and Indian
Christians and any Will which is duly executed and attested by two Witnesses is valid in the eye of law.
 robating of the Will should be mandatorily insisted upon in the case of Wills made by any Hindu,
Buddhist, Sikh or Jain where the Wills are made in the Presidency towns i.e., Chennai, Kolkata and
Mumbai and in such other places notified by respective State Governments.
 Letters of administration include any letters of administration, whether general or with a copy of the Will
annexed or limited in time or otherwise.
 Letters of administration are also granted under Section 232 of the Indian Succession Act.
 When a person dies leaving a Will without appointing an executor or if the executor appointed by the
Will is legally incapable or refuses to act or who has died before the testator or before he has proved the
Will, an administrator can be appointed only by a competent court as distinguished from an executor
who can be appointed only by a person by his Will or Codicil.
 Where the depositor is a Non Resident and has passed away abroad, the death certificate will have to be
attested either by a Notary Public / Indian Embassy or High Commission / Bank’s Foreign Office of that
country where the death has occurred or such country’s Embassy or High Commission in India.
PROCEDURE FOR SETTLEMENT IN THE ABSENCE OF ANY NOMINATION OR LEGAL REPRESENTATION
 Claims up to ₹ 10,000/-: Claim settlement can be made to any one or more of the claimants – preferably
the widow of the deceased, without insisting for signature of all the claimants.
 Claims above ₹ 10,000/- up to ₹ 50,000/-: Claims arising out of other than testamentary succession in
deposit accounts having aggregate balance of or in securities the value of the securities pledged with the
Bank is Rs 50,000/- or below (the prevailing market value is the basis) may be settled without insisting
upon death certificate and other claim forms, but on the basis of either the personal knowledge of the
manager or by making due enquiries and against a simple claim-cum declaration form as per the
prescribed format.
 Claims above ₹ 50,000/-:
A) With respect to claims above ₹ 50,000/- the Claimants will have to furnish Application Form under
NF 1020 along with the applicable annexures duly executed in the prescribed manner. The Claimants
are also required to furnish the Death Certificate of the deceased issued by Competent Authority,
along with Photograph and Proof of identification of Claimants, declarants and sureties (wherever
applicable) viz., Election ID Card, Aadhaar Card, Passport, Driving License copy or any other proof of
identification acceptable to the Bank.
B) Where the depositor is a Non Resident and has passed away abroad, the death certificate will have
to be attested either by a Notary Public / Indian Embassy or High Commission / Bank’s Foreign Office
of that country where the death has occurred or such country’s Embassy or High Commission in India.
C) Claim application must necessarily be attested by any one of the following: i) Village Headman; ii)
Any Municipal Councillor; iii) A customer of the Bank; or iv) Any other respectable person known to
the Bank. Claim application, NF-1020 must be signed by all the major legal heirs. In respect of minors,
natural guardian or the guardian appointed by the court or by the District Court under Mental Health
Act or by the Local Level Committee under the National Trust Act, 1999 also must sign it on behalf of
the minors.
D) Where the Claim amount is above Rs. 5 Lakhs, the Claimants will have to furnish Indemnity cum
Surety in the prescribed formats from two persons who shall be other than claimants, who are good
for the amount.
E) “Good for the amount” defined as the net worth of the sureties should be equal to or more than the
death claim amount above a threshold limit of Rs. 5.00 lacs.
 Safe Deposit Lockers: The method of preferring claims is similar to that as in the case of deposits above
50,000/-. Along with the Claim Application, Death Certificate and KYC Documents, the Claimants will have
to execute (i) a stamped letter of declaration, (ii) stamped and notarized affidavits from two independent
persons well known to the family of the deceased and acceptable to the Bank or any account holders of
the Bank known to the family of the deceased (iii) Indemnity cum Surety from two persons who shall be
other than claimants, who are acceptable to the Bank, in the prescribed formats.

 DELEGATION OF POWERS
Authority Powers (In ₹/Lakh)
Managers/ Senior Managers heading Branches 2.00
Executives in Scale IV heading the Branches 3.00
Executives in Scale IV in ROs 5.00
Executives in Scale V heading the Branches 5.00
Executives in Scale V in ROs/heading ROs 10.00
Wherever the Executives of Scale IV & V heading 2.00
the branches are on leave / absence beyond 7 days,
powers to Managers / Senior Managers
Deputy General Managers heading Branches like Full Powers
PCBs

परिपत्र साि: Gist of Circulars 45

 Canara Institute of Bank Management, Manipal

Deputy General Managers of RO/Cos Full Powers

Safe Deposit Lockers & Safe Custody Articles DGM Circle Office
irrespective of the amount
 CLAIMS IN JOINT ACCOUNTS/ LOCKERS WITH SURVIVORSHIP MANDATE
 SB / Current Accounts:
1) A joint account opened as “Either or Survivor” or “Anyone or Survivors” or “Former or Survivor” or
“Later or Survivor” will permit the surviving account holder(s) to have unimpeded access to the
credit balance in the account for withdrawal if one of the co-account holders dies.
2) With survivorship clause, on the death of one depositor (or more but not all) survivor/s can operate
the account duly deleting the name of the deceased. On the death of one depositor (or more but
not all) without survivorship clause, claim to be settled in favour of Legal heirs of the deceased and
survivor/s.
3) On the death of all the depositors, claim to be settled in favour of legal heirs of all the depositors (or
any one of them as mandated by all the legal heirs).
 Term Deposits
1) With respect to Term Deposits opened with the mandate of “Either or Survivor” or “Former/Later
or Survivor”, in the case of death of one or more joint depositors (but not all) on or after maturity
of deposit, claim has to be settled in favour of survivor/s
2) When one of the depositors dies before maturity of deposit and amount is claimed before maturity
of the same, claim has to be preferred jointly by the surviving depositors and the legal heirs of the
deceased depositor.
3) If any of the depositors dies before/after maturity of deposit and the amount is claimed on or after
the date of maturity of the deposit, the claim shall be settled to the surviving depositor/s without
referring to the legal heirs of the deceased depositor/s.
4) On the death of all the depositors, claim has to be preferred by legal heirs of all the depositors (or
any one of them as mandated by all the legal heirs).
 Safe Deposit Lockers
1) In case of a Locker hired jointly with “Either or Survivor” mandate, in the event of death of one or
more joint hirers (but not all), survivor/s will be given access to the locker and liberty to remove the
contents.
2) On the death of all the joint hirers of locker the legal heirs of the joint hirers (or any one of them
mandated by all legal heirs) will be given access to the locker and liberty to remove the contents.
 CLAIMS IN JOINT ACCOUNTS/ LOCKERS WITHOUT SURVIVORSHIP MANDATE
On the death of one depositor/ Joint Hirer(s) (or more but not all), the claim has to be settled jointly to
Legal heirs of deceased (or any of them as mandated by all the legal heirs) and survivors. On the death
of all depositors/ Joint Hirer(s), claim has to be settled in favour of Legal heirs of all the
depositors/Hirers, (or any one of them as mandated by all the legal heirs) on verification of the authority
of the legal heirs and proof of the death of the depositor/Hirer
 SAFE CUSTODY ARTICLES
1) Generally, safe custody articles are not accepted in joint names.
2) Even if accepted in joint names, nomination facility is not provided.
3) Nomination facility is available only in the case of individual depositor / sole proprietary concern.
4) In the case of Safe Custody Articles also, all the procedures with regard to Safe Deposit Lockers shall
be complied with.
5) All claims pertaining to Safe Custody Articles irrespective of the amount are to be referred to DGM
Circle office for settlement.
 CLAIMS IN NON RESIDENT ACCOUNTS
Where Nomination is registered:
 Remittance/Transfer of Funds to Non-resident Nominees
The Banking Companies (Nominations) Rules, 1985 framed under Banking Regulations Act, 1949 enable
banks to pay the amount standing to the credit of the deceased depositor to his nominee(s). Authorized
Dealers are delegated with powers to allow remittance of funds lying NRE/FCNR (B) accounts of the
deceased account holders to their non-resident nominees subject to the following conditions:
a) Application submitted by the nominees
b) A valid nomination has been registered on the bank’s records in favour of the nominees in
conformity with the provisions of the above said Rules
c) The nominee continues to be non-resident at the time of the claim/remittance sought for from
India and that the deceased depositor was non- resident at the time of his/her death.
d) All the legal heirs are non-residents. A signed declaration to the effect duly witnessed may be
submitted by the nominee to the Authorized Dealer.
 Resident Nominees
In case the nominee is a resident, no reference to RBI is necessary for payment of the rupee funds to
the resident nominee. However, the applications received from resident nominees for remittance of
funds abroad for meeting the liabilities, if any, of the deceased account holder or for similar other
purposes may be forwarded to Reserve Bank for consideration on merits.
Where Nomination is not registered

परिपत्र साि: Gist of Circulars 46

 Canara Institute of Bank Management, Manipal

 The claims in respect of any deceased NRE account holder may be disbursed to the legal heirs’ resident
in India, after complying with the same formalities as applicable in the case of disbursement of claims
to the legal heirs of a resident account holder. All legal formalities as in the case of local disbursement
are also to be complied with in such cases. In case the claimant is an NRI, the amount may be credited
to his NRO account and the amount may be repatriated abroad subject to conditions.
 PAYMENT OF INTEREST
 In the case of a term deposit standing in the name/s of a deceased individual depositor or two or more
joint depositor(s), where one of the depositors has died, interest shall be paid in the manner indicated
below:
A) On the date of maturity interest shall be paid at the contracted rate
B) n case of premature withdrawal, interest will be paid at applicable rate with reference to the period
for which the deposit has remained with the Bank without charging penalty.
C) In the event of death of the depositor before the date of maturity of the deposit and the amount
of deposit is claimed after the date of maturity the bank shall pay interest at the contracted rate till
the date of maturity From the date of maturity to the date of payment, the bank shall pay simple
interest at the applicable rate operative on the date of maturity, for the period for which the deposit
remained with the bank beyond the date of maturity. However, in the case of death of the depositor
after the date of maturity of the deposit, the bank shall pay interest at savings deposit rate
operative on the date of maturity from the date of maturity till the date of payment
D) In the case of a NRE deposit when the claimants are residents, the deposit on maturity will be
treated as domestic rupee deposit and interest be paid for the subsequent period at a rate
applicable to the domestic deposit of a similar maturity.
 SETTLEMENT OF CLAIMS IN RESPECT OF MISSING PERSONS
 As per the provisions of the Indian Evidence Act, presumption of death can be made only after a lapse of
seven years from the date of a person being reported missing, i.e. the date when the FIR / non-traceable
report was lodged.
 As per the extant guidelines, claims in respect of deposit accounts up to ₹50,000/- is considered as within
the threshold limit and in such cases Branch Managers are authorized to settle the claims following a
simplified procedure.
 In respect of claims of deceased depositors above the threshold limit, i.e. above ₹ 50,000/-, in addition
to the documents stipulated for Settlement of Death Claims, Order issued by competent Court raising
express presumption of death of the depositor/customer under Sections 107/108 of Indian Evidence Act
has to be produced, so as to settle the claims to the nominee/legal heirs/survivor(s).
The Customer Service Committee of the Board will review the Quarterly position of pending death claims beyond
the stipulated period of 15 days.
243/22 Policy on dishonour of inward cheques/ dishonour of ECS mandates, for the reason “insufficient funds” for FY
2022-23
 a cautionary advice will be issued for dishonor 3rd time
 a cautionary advice will be issued for dishonor 5th time
 value less than Rs. 1 Crore, on SIX occasions during the financial year will attract stoppage of cheque
book facility and closure of account.
 if ECS mandates are dishonored on FOUR occasions – closure of account
 Dishonour of a cheque valuing Rs.1 crore & above and cheques favouring Stock Exchanges irrespective
of the amount, on FOUR occasions during the financial year no cheque book would be issued and Bank
may consider closure of Current Accounts at our discretion.
 a cautionary advice will be issued for dishonor 3rd time. Stoppage of cheque facility, in the event of
cheque being dishonored for the reason insufficient funds on fourth occasion on the same account during
the financial year.
244/22 Policy for General Management of Bank Branches for FY 2022-23
 The policy for General Management of Bank branches has been reviewed and approved by the Board for
the FY 2022-23. As per the policy, the Bank’s systems should be oriented towards providing better
customer service.
 The main objectives of the policy: Providing better customer service and Uniformity in Managing Bank
Branches with good ambience.
245/22 Grievance redressal policy of the bank for FY 2022-23
 Bank's policy on Grievance Redressal follows the under noted principles:
a) Our customers will be treated fairly at all times.
b) Complaints raised by our customers will be dealt with courtesy and in time.
c) Our customers will be fully informed of avenues to escalate their complaints/ grievances within the
organization and their rights to alternative remedy, if they are not fully satisfied with the response of
the bank to their complaints.
d) Our Bank will treat all complaints efficiently and fairly as they can damage the Bank's reputation and
business if handled otherwise.
e) Our employees will work in good faith and without prejudice to the interests of the customer.
f) Complaints emanating from rural areas and those relating to financial assistance to priority sector and
Government Poverty alleviation programme also form part of the above process.

परिपत्र साि: Gist of Circulars 47

 Canara Institute of Bank Management, Manipal

 Internal Ombudsman : a retired senior officer of the rank of General Manager from another Bank, at the
apex level.
 The General Manager, Priority Credit Wing shall act as the Nodal Officer for monitoring of Credit Related
grievances forwarded by the Ministry for taking appropriate action on merits.
 A copy of the complaint is required to be forwarded to the concerned controlling office of the bank along
with the remark of the branch manager within a time frame. Within a maximum of 7 days depending
upon the nature of Grievances.
 Canara Public Grievance Redressal Package (CPGRS) in which all the complaints are registered and
redressed.
 Customer Service Committee meeting is held every month at all Branches/ Regional Offices/ and Circle
Offices.
 Grievance Escalation System:Customers can lodge their complaints directly to Branch-in-charge to
resolve the complaint within 7 days from the date of receipt. Not able to resolve the complaint within 7
days, the complaint will be referred by the Branches to the concerned Regional Office/ Circle Office
along with their comments/ replies for further action. complaints referred to Regional Office/ Circle
Office will be analyzed by Customer Service Section and based on the explanation received from the
Branch, RO/ CO will send a suitable reply to complainant. If the reply received from the Branch is not
satisfactory and if Regional Office/ Circle Office cannot resolve the complaint within 7 days from the
date of receipt of complaints, the same will be referred to Customer Service Section, Head Office along
with their comments/ explanations. The Circle Office will also send the details of the complaints received
directly by them and not settled within 7 days to Customer Service Section, Head Office along with their
comments/ replies.
 In CPGRS Package - Before rejecting or providing partial relief to any of the customers’ complaints they
need to be escalated to the Internal Ombudsman (IO) of the Bank. It is required to select the option
“Partially closed/ rejected complaints–refer to Internal Ombudsman” at the time of Closure of such
complaints.
 INTEGRATED OMBUDSMAN SCHEME 2021: reply will be issued to customers within 15 days of lodging a
complaint with us. If Bank, needs more time to resolve the complaint, a written request may be given to
the Ombudsman for further extension of initial period of 15 days. For general complaints submitted to
Bank and if customer does not get a satisfactory response from us and if customer wishes to pursue
other avenues for redressal of grievances, customer may approach Banking Ombudsman appointed by
Reserve Bank of India under Integrated Ombudsman Scheme, 2021.
 Where the complaints are not redressed within 15 days, the concerned Nodal Executive of the Circle
shall take up with the concerned Ombudsaman’s office for further extension of time within the initial
time of 15 days.
 The Standing Committee on Customer Service will be chaired by the Managing Director and CEO or
Executive Director of the Bank. Besides two to three Senior Executives of the Bank, the Committee would
also have two to three eminent non- executives drawn from the public as members including an expert
in handling customer grievances.

Time Schedule for Redressal of Complaints:

Stipulated by Ministry of Adopted by Bank
Finance
General Complaints 30 days 21 days
Complaints forwarded by RBI/MOF MPs/VVIPs 21 days 15 days
Complaints from PMs office 15 days 7 days
246/22 Option in HRMS package for uploading latest photograph of active employees.
247/22 Introduction of “CANARA CA PFMS” Private bodies Other Customer Types (which are not eligible to open
Savings Accounts) identified & permitted by Government of India
 Minimum Balance maintenance is waived.
 Debit Card & Mobile Banking facility unavailable.
 Internet banking facility with only view facility available.
 Account Opening permitted only at specific branches permitted by the Circle Head.
 Accounts to be opened under Product Code - 1651.
 Account Portability is not available.
248/22 Standardized Approach for sharing Pari Passu letters and creation of Mortgage under Consortium/ Multiple
Banking Arrangements-IBA guidelines
RESPONSIBLE DESCRIPTION TIMELINE TIME CUMULATIV
PARTY COMMENCING FROM LINE E
TIME LINE
Existing Written Communication on Before disbursement Before
lender Intent to enter the of the facility approach
enhancing his consortium/MBA ing for
share or New Request for NOC for creation NOC/Pari Before
Financing of charge Passu disburseme
Bank entering letter EM nt

परिपत्र साि: Gist of Circulars 48

 Canara Institute of Bank Management, Manipal

the Request for issue of Pari Passu Sanction of facilities Before

consortium Letter for sharing of charges disburse
/MBA Request for Extension of EM ment
Lead bank/ Arranging meeting of the From receipt of written 15 Days 15 Days
Bank with consortium/MBA Banks to communication from from date of
highest decide whether to cede the new lender receipt of
exposure of charges or not the request
the Existing Obtaining necessary approval From the date of the 30 Days 45 Days
Lenders from sanctioning authority meeting to decide on from date of
ceding of charges receipt of
the request
Other banks in Obtaining necessary approval From the date of Lead 30 Days 75 Days
Consortium/ from sanctioning authority Bank/Bank with from date of
MBA highest exposure receipt of
arrangement obtaining approval the request
from their sanctioning
authority
249/22 Policy guidelines on domestic branch (banking outlet) authorisation for FY 2022-23
 Branch (banking outlet) is being opened from time to time at several potential/growth centres/ locations
as Expansion is one of the strategies of the Bank for growth and profit.
 The Branch (banking outlet) Rationalisation aspect, comprising of shifting of branches/offices,
merger/substitution/closure of branches/ and conversion of specialised branches into general banking
branches and vice versa, is also given due attention, whenever the need arises, duly taking into account
the need for such proposals, etc.
 Domestic Scheduled Commercial Banks (other than Regional Rural Banks) for
opening/substitution/shifting/conversion/merger of Banking outlet in Tier 1 to Tier 6 centers (population
details provided in para 3 B) without the need to obtain prior permission from RBI in each case, subject
to reporting and certain guidelines.
 For the purpose of Branch (Banking Outlet) Authorization policy, a “Branch” would include all Banking
Outlets. A Banking Outlet is a fixed point service delivery unit, manned by either bank’s staff or its
Business Correspondent where services of acceptance of deposits, encashment of cheques / cash
withdrawal or lending of money are provided for a minimum of 4 hours per day for at least five days a
week.
 At least 25 percent of the total number of branches (banking outlet) opened during the financial year
must be opened in Unbanked Rural (Tier 5 and Tier 6) Centers.
 Details of tier-wise classification of centers based on population
Classification of Centres Population (as per 2011 census) Category of Branch
Tier 1 10,00,000 and above Metro Metro
1,00,000 to 9,99,999 Urban Urban
Tier 2 50,000 to 99,999 Semi-Urban
Tier 3 20,000 to 49,999 Semi-Urban
Tier 4 10,000 to 19,999 Semi-Urban
Tier 5 5,000 to 9,999 Rural
Tier 6 Less than 5000 Rural
 A banking outlet can be shifted to any location within the centre without seeking prior approval of RBI.
No amendment in the license would be required.
 Shifting/Merger/Closure/conversion of any rural Banking outlet as well as a sole semi urban Banking
outlet would require approval of the District Consultative Committee (DCC)/District Level Review
Committee (DLRC).
 Proposals for opening/shifting of Currency Chest would be placed before the Executive Director for
necessary approval, and the permission from RBI is to be obtained.
250/22 Policy guidelines on Deposits for FY 2022-23
 SAVINGS BANK ACCOUNT
 There are no restrictions on the number and amount of deposit that can be made on any day.
 Minimum amount of withdrawal/deposit is Rs.10/-.
 Introduction from an existing customer is not mandatory for opening accounts, including those of legal
entities.
 The Bank is required to obtain 2 recent photographs of the person/s opening the account. In case of
illiterate persons, 3 photographs have to be obtained.
 The Officially Valid Documents are as under:
1) Passport. 2) Driving License. 3) Proof of possession of Aadhaar number*. 4) Voter Identity Card issued
by Election Commission of India. 5) Job card issued by NREGA duly signed by an officer of the State
Government. 6) Letter issued by the National Population Register containing details of name and
address
 Customer Due Diligence (CDD) means identifying and verifying the customer and the beneficial owner.

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 Canara Institute of Bank Management, Manipal

 “Obtaining a certified copy” shall mean comparing the copy of the proof of possession of Aadhaar
number where offline verification cannot be carried out or officially valid document so produced by the
customer with the original and recording the same on the copy by the authorized officer of the Bank).
 “Digital KYC” means the capturing live photo of the customer and Officially Valid Document or the proof
of possession of Aadhaar, where offline verification cannot be carried out, along with the latitude and
longitude of the location where such live photo is being taken by an authorized officer of the Bank.
 “Equivalent e-document” means an electronic equivalent of a document, issued by the issuing authority
of such document with its valid digital signature including documents issued to the digital locker account
of the customer as per rule 9 of the Information Technology (Preservation and Retention of Information
by Intermediaries Providing Digital Locker Facilities) Rules, 2016.
 The interest on Savings Deposit is calculated on daily product basis and credited to the customers‟
accounts on quarterly intervals, on 1st of February, 1st of May, 1st of August and 1st of November every
year.
 Service charges will be collected if the number of withdrawals exceeds 50 for every half year period of
February – July and August- January.
 An instrument having date as per SakaSamvat calendar is a valid instrument. A Date Conversion inquiry
facility is provided in CBS. Bank shall ascertain the Gregorian calendar date corresponding to the
National Saka calendar in order to avoid payment of stale cheques.
Canara Basic Savings Bank Deposit Accounts:
 The following basic minimum facilities in the Canara Basic Saving Bank Deposit Account (BSBDA), are to
be offered free of charge, without any requirement of minimum balance.
 The deposit of cash at bank branch as well as ATMs/CDMs
 Receipt/Credit of money through electronic payment channels or by means of deposit/ collection of
cheques drawn by Central/ State Government agencies and departments.
 No limit on the number and value of deposits that can be made in a month
 Four withdrawals in a month, including ATM withdrawals
 ATM card or ATM-cum-Debit Card.
 Holders of Basic Savings Bank Deposit Account will not be eligible for opening any other savings bank
deposit account in the bank. If a customer has any other existing savings bank deposit account in the
bank, he/she will be required to close such existing accounts within 30 days from the date of opening
of “Canara Basic Savings Bank Deposit Account”.
Accounts under Relaxed KYC Guidelines (Small Accounts)- “Canara Small Savings Bank Deposit”
account
 The accounts with “Relaxed KYC guidelines” can be opened under “Canara Small Savings Bank Deposit
Account”.
 Accounts where aggregate of all credits in a financial year does not exceed Rs.1.00 lac;
 The aggregate of all withdrawals and transfers in a month does not exceed Rs.10,000/- and
 Where the balance at any point of time does not exceed Rs.50,000/-.
 The above limit on balance shall not be considered while making deposits through Government grants,
welfare benefits and payment against procurements.
 Canara Small Savings Bank Deposit account can be opened on production of a self attested photograph
and affixation of signature or thumb impression as the case may be, on the form for opening the
account, provided that the bank official while opening the account certifies under his signature that the
person opening the account has affixed his signature or thumb impression as the case may be, in his
presence.
 A Canara Small Savings Bank Deposit Account shall remain operational initially for a period of twelve
months and thereafter for a further period of twelve months if the holder of such an account provides
evidence before the Bank of having applied for any of the officially valid documents within twelve
months of the opening of the said account. The entire relaxation provisions are to be reviewed in
respect of the said account after twenty four months.
 If a customer has any other existing savings bank deposit account in the Bank, he/she will be required
to close such existing accounts within 30 days from the date of opening of “Canara Small Savings Bank
Deposit Account”.
 Foreign remittances shall not be allowed to be credited into a Canara Small Savings Bank Deposit
Account unless the identity of the customer is fully established through the production of officially valid
documents.
Documents required by a foreign student to open a Bank account
 Proof of Identity: Passport, Valid Visa with photograph.
 Proof of Admission: A letter from the University or College.
 Address Proof: A letter from the College or Hostel, certificate from the Embassy of the country of origin
or any appropriate Legal Authority certified local address in India/rent agreement/certification of
registration issued by Foreigner Registration Regional Office (FRRO).
 Branches may open NRO Account on the basis of the passport (with appropriate visa & immigration
endorsement) which contains proof of identity and address in the home country along with a
photograph and a letter offering admission from the educational institution in India.
 Provided that a declaration about the local address shall be obtained within a period of 30 days of
opening the account and the said local address is verified.

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 Canara Institute of Bank Management, Manipal

 Provided further that pending the verification of address, the account shall be operated with a condition
of allowing foreign remittances not exceeding USD 1000 or equivalent into the account and a cap of
rupees fifty thousand on aggregate in the same, during the 30-days period.
 Students with Pakistani nationality will need prior approval of RBI for opening the account.
CURRENT ACCOUNT
 Current Accounts are designed to meet the needs of such sections of the public who operate their
account regularly and frequently. i.e., Traders, Businessmen, Corporate bodies or the like, who receive
money and make payments very often.
 Current accounts are suitable to such category of customers as there are no restrictions on the number
of withdrawal or deposit.
 Current accounts can be opened by individuals, proprietary concerns, partnership firms, Private & Public
Ltd Co., HUFs/Specified associations, Societies, Trusts, Limited Liability Partnerships, Departments of
Authority created by Government (Central or State) etc.
 Introduction from an existing customer is not mandatory for opening accounts, including those of legal
entities.
 No interest is paid on credit balance kept in Current Account.
 Service charges are levied for : Ledger folio used, Cheque books issued,Non-maintenance of minimum
balance, Return of cheques, etc
Branch may open current accounts for borrowers who have availed credit facilities in the form of cash
credit (CC)/ overdraft (OD) from the banking system as per the provisions below:
 For borrowers, where the exposure of the banking system is less than ₹5 Crore, there is no restriction
on opening of current accounts or on provision of CC/OD facility by banks, subject to obtaining an
undertaking from such borrowers that they shall inform the bank, as and when the credit facilities
availed by them from the banking system reaches ₹5 Crore or more.
 In respect of borrowers where exposure of the banking system is ₹5 Crore or more, such borrower can
maintain current accounts with any one of the banks with which it has CC/OD facility, provided that the
bank has at least 10 per cent of the exposure of the banking system to that borrower. Further, other
lending banks may open only collection accounts subject to the condition that funds deposited in
such collection accounts will be remitted within two working days of receiving such funds, to the CC/OD
account maintained with the above-mentioned bank maintaining current accounts for the borrower. In
case none of the lenders has at least 10% exposure of the banking system to the borrower, the bank
having the highest exposure may open current accounts. Non-lending banks are not permitted to open
current accounts

 In case, customers who have not availed CC/OD facility from any bank, branches may open current
account as under:

 If prospective customer is having credit exposure of Rs.50 Crore or more (except CC/OD limit) in banking
system, branches shall be required to put in place an escrow mechanism. Accordingly, current accounts
of such borrowers can only be opened / maintained by the escrow managing bank. However, there is
no restriction on opening of „collection accounts‟ by lending banks subject to the condition that funds
will be remitted from these accounts to the said escrow account at the frequency agreed between the
bank and the borrower. Further, the balances in such accounts shall not be used as margin for availing
any non-fund based credit facilities. While there is no prohibition on amount or number of credits in
„collection accounts‟, debits in these accounts shall be limited to the purpose of remitting the proceeds
to the said escrow account. Non-lending banks shall not open any current account for such borrowers.
 If prospective customer is having credit exposure of Rs.5 Crore or more but less than Rs.50 Crore (except
CC/OD limit) in banking system, there is no restriction on opening of current accounts by the lending
banks. However, non-lending banks may open only collection accounts
 If prospective customer is having exposure of less than Rs.5 Crore (except CC/OD limit), branch may
open current accounts subject to obtaining an undertaking from such customers to the effect that
customers shall inform, if and when the credit facilities availed by them from the banking system
becomes Rs.5 Crore and above.
TERM DEPOSIT ACCOUNT
 Term deposits are deposits received by the Bank for a fixed period, withdrawable after the expiry of the
fixed period and include deposits such as Recurring/Fixed/Kamadhenu/Nitya Nidhi Deposit etc.
 Term deposits can be opened by individuals, partnership firms, Private/Public Ltd Companies, HUFs,
Institutions, Societies, Trusts, Limited Liability Partnership, Departments of Authority created by
Government (Central or State) etc
 The Minimum period for placing deposit under Fixed deposits (FD) Scheme is 7 days (for deposits of
Rs.5 lakh and above) otherwise the minimum period is 15 days.
 The minimum period under reinvestment scheme- Kamadhenu Deposit (KD) is 5 months
 The minimum period under reinvestment scheme Recurring deposit (RD) is 6 months.
 The maximum period for deposits under Fixed deposits (FD), Kamadhenu Deposit (KD) and Recurring
deposit (RD) is 10 years.
 However, deposits in the name of minors and deposits under court orders are accepted for more than
10 years period.

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 Canara Institute of Bank Management, Manipal

 Introduction from an existing customer is not mandatory for opening accounts, including those of legal
entities.
 The Branch is required to obtain 2 photographs of all the person/s that are opening and operating the
account. Photograph will not be insisted from depositors already having their SB/ Current Account with
photographs.
 The rate of interest for Term Deposits is decided by the Asset Liability Committee of the Bank, who has
been delegated with such powers by the Board of the Bank.
 A penalty of 1.00% shall be levied for premature closure/part withdrawal/premature extension of
DomestNRO term deposits of less than Rs.2 Crore that are accepted /renewed on or after 12.03.2019.
 A penalty of 1.00% is waived in case of premature closure /part withdrawal/ premature extension of
DomestNRO CALLABLE term deposit of Rs. 2 Crore & above that are accepted/renewed on or after
12.03.2019. Such prematurely closed/part withdrawn/prematurely extended deposits will earn interest
at the rate as applicable for the amount slab of Rs.2 Crore & above as ruling on the date of deposit and
as applicable for the period run OR the rate at which the deposit has been accepted, whichever is lower.
 No interest will be payable on DomestNRO term deposits prematurely closed/prematurely extended
before completion of 7th day. (Including for Sweep in- Sweep out deposits).
 The Bank may also consider loan against deposit standing in the name of minor. However, a suitable
declaration stating that loan is for the benefit of the minor is to be submitted by the guardian.
 If a Domestic Term deposits matures and proceeds are unpaid, the amount left unclaimed with the Bank
shall attract rate of interest as applicable to saving account or the contracted rate of interest on the
matured TD, whichever is lower.
 In case of renewal of an overdue domestic term deposit, the value dating may be permitted by the SP&D
Wing Head, based on the recommendations by the Circle Head.
Deposits maturing on Holiday/non-business working day:
 If a term deposit is maturing for payment on a Holiday/non-business working day, interest shall be paid
at the originally contracted rate on the original principal deposit amount for the Holiday/non-business
working day, intervening between the date of the maturity of the specified term of the deposit and the
date of payment of the proceeds of the deposit on the succeeding working day.
 In case of reinvestment of Term deposits and recurring deposits, interest shall be paid at the originally
contracted rate for the intervening Holiday/nonbusiness working day on the maturity value.
BULK DEPOSITS
 As per RBI Master Direction on Interest Rates on Deposits, "Bulk Deposit" is defined as “Single Rupee
term deposit of 2 Crore and above” w.e.f 12.03.2019
 Presently, there is no penalty for premature closure/part withdrawal/ premature extension of
DomestNRO term deposit of Rs.2 Crore & above.
 The rationalized upper limit for accepting single term deposits at branch level has been fixed to less
than Rs.10 Cr with effect from 01.04.2020 at the card rate, without referring to Development Section,
SP&D Wing, HO.
 For Single Bulk Domestic term deposit of Rs.10 Crore and above, only Designated branches shall take
up with T & I Division, Integrated Treasury Wing, Mumbai, HO through MIPD & PP Section of respective
Circle office for obtaining permission to accept the deposit.
 Head of S P & D Wing is permitted to designate any branch (other than Designated branches) to open
Single Bulk Term Deposit of “Rs.10 Crore and above” in exceptional circumstances based on business
needs and on the recommendation of the Circle Head.
 In case of loan/overdraft facility of Rs.1 Crore and above against the term deposit, necessary due
diligence shall be ensured by the branches and offsite monitoring should be done at the BS&IC Section,
Circle Office (Loans of less than Rs.10 Crore sanctioned against a term deposit) and OTM Cell, Inspection
Wing, Head Office (Loans Rs.10 Crore& above).
 A Callable deposit (premature withdrawal permissible) can be closed before maturity at any point of
time without penalty and the rate of interest will be payable at the rate prevailing on the date of
opening, for the period that the deposit has run.
 A Non-callable deposit (premature withdrawal NOT permissible) (for a period of 46 days and above –
other than Individual and HUF) cannot be closed beforematurity and the Bank will offer additional
interest rate above the rate as applicable to General Public for callable deposits.
Payment of Interest on the domestic Term Deposit of a deceased depositor
 In respect of the deposit of the deceased closed before maturity and repaid to the legal heirs/
representatives of the deceased depositor, interest is payable at the rate applicable for the period for
which the deposit actually remained with the bank without penal cut.
 In the event of the death of the depositor before the date of the maturity of the deposit and the amount
of the deposit is claimed after the date of maturity, the bank shall pay interest at the contracted rate
till the date of maturity. From the date of maturity till the date of payment, the bank shall pay simple
interest at the applicable Savings bank rate prevailing on the date of maturity, for the period for which
the deposit remained with the bank beyond the date of maturity.
 In the case of death of the depositor after the date of maturity the bank shall pay interest at Savings
Bank rate prevailing on the date of maturity, from the date of maturity till the date of payment.
Term Deposits of Senior Citizens

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 Canara Institute of Bank Management, Manipal

 Additional interest of 0.50% is available to Senior Citizen deposits only in case of Retail Term Deposit
(RTD- Less than Rs.2.00 Crore) with tenor of 180 days and above under Domestic term deposits except
CGA deposits, NRO/NRE term deposits
 Senior Citizen Deposit can be opened by persons who have completed the age of 60 years and above,
individually or jointly with other senior citizen or with other persons below the age of 60 years subject
to the condition that the Senior Citizen is No. 1 Depositor.
 For Ex-employee Senior Citizens (60 years and above) additional 1.50% over and above the rate offered
for General public is to be extended for all deposit periods (except for term deposits under NRO, and
Capital Gains Deposit scheme), irrespective of the size of the deposit.
 Under Canara Tax Saver Scheme, the additional interest rate offered to Ex-employee Senior Citizens
over and above the rate offered for General Public is 1% only.
NRE TERM DEPOSITS
 Minimum period of NRE deposit is one year and maximum period is 10 years.
 There is no stipulation on minimum/maximum deposit amount.
 The period of NRE term deposits can be extended during the tenure of the deposit for a period longer
than the balance period (i.e., remaining period of the deposit).The period of the extended deposit shall
be minimum of one year and a maximum of 10 years effective from the date of extension.
 The overdue NRE term deposit will be paid interest at prevailing NRE Savings Bank Rate for the overdue
period.
 Renewal of overdue terms deposit from the date of maturity is prohibited.
 NRE term Deposit shall be automatically renewed only once by the Bank on due date for an identical
period at the applicable rate of interest ruling on the date of maturity based on the mandate of the
depositor in the original application form, unless instruction to the contrary is received from the
depositor by the Bank.
 A penalty of 1.00% shall be levied for premature closure/premature extension of NRE term deposit of
less than Rs.2 Crore that are accepted /renewed on or after 12.03.2019.
 DEPOSITS HELD IN FCNR [BANKS] ACCOUNTS
 The deposits under the scheme mean “term deposits” received for a fixed period and withdrawable
only after the expiry of the said fixed period and shall also include Reinvestment Deposits and Cash
Certificates or other deposits of similar nature.
 The scheme covers deposits in US Dollar (USD), Great Britain Pound (GBP), Euro(EUR), Canadian
Dollars(CAD) and Australian Dollars(AUD) from nonresident individuals of Indian nationality or origin
[NRIs].
 Repatriation of funds in foreign currencies is permitted.
 No Recurring Deposits shall be accepted under FCNR (B) Scheme
 Transfer of funds from the existing NRE accounts to FCNR (B) accounts and vice versa, of the same
account holder, is permissible.
 The interest rates ceiling on FCNR (B) deposits and calculation of interest is as per RBI guidelines and
linked to the Overnight Alternative Reference Rate for the respective currency / Swap rates
quoted/displayed by Foreign Exchange Dealers Association of India (FEDAI).
 CBS reckons 360 days as number of days per year while calculating interest on FCNR (B) deposits.
 The facility of auto-renewal of FCNR (B) deposits is restricted to single renewal only (i.e., auto renewal
shall happen only once), as the Non-resident status of the depositor is to be confirmed periodically.
 Where the FCNR(B) deposit is to be closed before maturity before completion of the minimum period
of deposit i.e., one year from the effective date of deposit, no interest is payable on such prematurely
closed deposit.
RESIDENT FOREIGN CURRENCY ACCOUNTS (RFC)
 Returning Indians, i.e. those Indians, who were non-residents earlier and are returning now for
permanent stay, are permitted to open, hold and maintain with an Authorized Dealer in India a Foreign
Currency Account, to be known as a Resident Foreign Currency (RFC) Account, out of permitted credits
as per norms.
 RFC Accounts will be maintained in US Dollars [USD], Sterling Pounds [GBP], Euro [EUR], Canadian
Dollars [CAD] and Australian Dollars [AUD]. Minimum Amount for Opening RFC Term Deposit (FD/KD)
Account & for Opening RFC Savings Bank/Current Account is 1000.
 There is no maximum limit.
 RFC Accounts can be maintained in the form of Current/Savings Bank [without cheque book facility] and
Term Deposits other than Recurring Deposit accounts.
 The RFC Fixed Deposit can be opened for a minimum period of one month and a maximum period of
three years.
 In exceptional cases, where deposit is for a minimum amount of USD 250,000 or its equivalent in other
currencies, RFC FDR may also be accepted for short period of one week to less than one month.
 Interest on RFC Deposits is intimated on a Monthly basis by Integrated Treasury Wing, Mumbai.
 Interests on RFC SB, RFC Term Deposits from 1 week to less than 1 year are linked to London Inter-Bank
Bid (LIBID) Rate.
 Interests on RFC Term Deposits for 1 year and above upto 3 years only are same as applicable to FCNR
Deposits.

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 Canara Institute of Bank Management, Manipal

 Employees/Ex-employees/EX-employees senior citizen of the bank and Senior Citizens are not eligible
for preferential rate of interest of 1% on RFC deposits.
RESIDENT FOREIGN CURRENCY (DOMESTIC) ACCOUNT [RFCD]
 A person Resident in India is permitted to open, hold and maintain a RFC – Domestic (RFCD) account,
out of foreign exchange acquired in the form of currency notes, bank notes and travelers cheques
subject to the conditions like acquired while on visit to any place outside India by way of payment for
services not arising from any business in or anything done in India etc., as permitted under extant FEMA
guidelines.
 Current Account only. Operation by authority letter and no cheque book shall be issued.
SPECIAL NON RESIDENT RUPEE (SNRR) ACCOUNT
 Any person resident outside India, having a business interest in India, may open an SNRR account in
Indian Rupee with Authorized Dealers for the purpose of putting through bonafide transactions in
rupees, subject to the conditions specified in Schedule 4 of the Deposit Regulations.
 The balances in the SNRR account shall be eligible for repatriation.
 Transfers from any NRO account to the SNRR account are prohibited.
 SNRR account may be designated as resident rupee account on the account holder becoming a resident.
 Opening of account by individual/ entities of Pakistan/ Bangladesh nationality/ownership will require
prior approval of the Reserve Bank of India.
GENERAL GUIDELINES
 There is no restriction in number of persons to open joint account.
 The mandate for operating the account can be modified with the consent of all the joint account
holders.
 In case of SB account opened by minor jointly with the natural guardian, the operations are allowed by
the natural guardian only.
 The Customer is allowed to transfer his/her account from one branch to another branch without
restrictions.
 Along with the fresh address proof, the customer is required to submit 2 latest photographs (for
accounts opened prior to 01.01.1994) to the transferee branch.
 The Bank may at the request of the depositor/s allow addition of name/s in Savings Bank, Current
Account & Term deposits.
 Deletion in name/s of depositor/s is also permitted, subject to the condition that one of the original
depositors should continue to be a depositor.
 Payment of cash upto Rs.50,000/- per occasion in Savings Bank and Current Account is to be extended
only to the drawer against self cheques, at all host branches (i.e. other than the base branch).
 Cash payment to third parties will be extended at base branch only.
 As per RBI guidelines, w.e.f. April 1, 2012, Banks should not make payment of Cheques/Drafts/Pay
Orders/Banker's Cheques bearing that date or any subsequent date, if they are presented beyond the
period of three months from the date of such instrument.
 As per RBI guidelines, no changes/corrections should be carried out on the cheques (other than for date
validation purposes, if required). For any change in the payee‟s name, courtesy amount (amount in
figures), or legal amount (amount in words) etc., fresh cheque forms should be used by the customers.
 Accounts which are not operated for a period of two years will be transferred to dormant / inoperative
account status in the interest of the depositor as well as the Bank.
 For the purpose of classifying an account as 'inoperative', only transactions that are induced at the
instance of customers as well as third party will be considered. However, the service charges levied by
the Bank or interest credited by the Bank will not be considered.
 In case any reply is given by the account holder giving the reasons for not operating the account,
branches should continue classifying the same as an operative account for one more year within which
period the account holder may be requested to operate the account.
 In case the balance is less than Rs 20/-, account will be closed if there is no account revival from the
depositor to the notice sent by the Bank.
 All credits are permissible in inoperative/dormant accounts without changing the account status.
 In case of Operative Accounts, an account shall be classified as “Unclaimed Deposits” if the same is not
operated (other than interest credits and service charge debits) for 10 years and more from the date of
last operation.
 In case of term deposit account, it shall be classified as unclaimed deposit if the same is not
renewed/withdrawn after 10 years or more from the date of maturity.
 Pursuant to the amendment of the Banking Regulation Act, 1949, section 26A has been inserted in the
Act, empowering Reserve Bank to establish The Depositor Education and Awareness Fund (DEAF Fund).
Under the provisions of this section the amount to the credit of any account in India with any bank
which has not been operated upon for a period of ten years or any deposit or any amount remaining
unclaimed for more than ten years shall be credited to the fund, with in a period of three months from
the expiry of the said period of ten years.
NOMINATION
 Nomination facility is available for all deposits held by individuals in their own capacity, singly or jointly.
 Nomination facility is also available to a sole proprietorship account.
 Nomination can be made in favour of one individual only.

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 Canara Institute of Bank Management, Manipal

 Nomination so made can be cancelled or changed by the account holder/s anytime during which the
deposit is held by the Bank to the credit of the depositor.
 Fresh nomination shall not be asked if the fixed deposits are renewed.
 Nomination can be made in favour of minor also, for which date of birth of the minor and full details of
the guardian is to be furnished.
 Bank recommends that all the depositors avail nomination facility. The nominee in the event of death
of the depositor/s could receive the balance outstanding in the account as a trustee of legal heirs.
 Our Bank has introduced e-sign facility for updation of nominee online. Individuals having Aadhaar
seeded with bank can utilize this facility.
 Nomination through Internet Banking is available for Saving Bank accounts, Recurring and Term
deposits
INSURANCE COVER FOR DEPOSITS
 All bank deposits are covered under the Insurance Scheme of Deposit and Credit Guarantee Corporation
of India (DICGC) subject to certain limits and conditions.
SPECIAL TYPES OF ACCOUNTS
 Minor account represented by guardian may be opened in the name of a minor by the guardian. The
account may be opened by natural guardian or with mother as the guardian.
 According to the Indian majority act, a minor is one who has not completed 18 years of age.
 In terms of Indian contract Act, the contracting parties should be necessarily major, for the validity of
the contracts. Hence, any contract with the minor is void ab-initio.
 Cheques issued by the guardian prior to the date on which the minor attains majority, but presented
after the above date, are to be treated as invalid

ACCOUNTS IN THE NAME OF MINOR WHO IS ABOVE THE AGE OF 10 YEARS

 SB account can be opened in the name of a minor who is above the age of 10 years.
 A declaration-cum-no objection letter is to be given by the natural guardian of the minor to the effect
that the minor has acquired sufficient knowledge about opening/operating the Bank account.
 Such accounts are to be opened for a reasonable amount and the Minor has to come in person for
withdrawal.
 No cheque book will be issued in such accounts and no overdrawings will be allowed.
 On attaining majority, fresh set of application form with the specimen signature card and photograph
of the erstwhile minor, duly countersigned by the guardian, would be obtained as in the case of new
accounts.
ACCOUNTS OF ILLITERATE PERSONS
 The Bank shall open accounts of illiterate persons, after observing formalities for opening such
accounts.
 No cheque book facility is provided for such accounts
ACCOUNTS OF BLIND PERSONS
 The Bank shall open deposit account in the name of blind person after observing all the formalities of
the Bank for opening and operation of such accounts.
 Branches are advised to offer all the banking facilities such as cheque book facility including cheques to
third party/ies, to the visually challenged persons without any discrimination.
 In case a visually impaired customer makes cash withdrawals at the Bank then the payment must be
made in the presence of another bank employee/ officer.
 No outside witnesses are required unless the visually impaired customer requests that such witnesses
be present.
ACCOUNTS OF PRISONERS
 The Bank shall open bank account of prisoners under Canara Small Saving Bank Deposit Account under
(Product code 127) in the absence of document for identity and residential proof
 The signature or thumb impression shall be affixed in presence of the officer in charge of the jail and
the said officer shall certify the same under his signature.
 The account shall remain operational on annual submission of certificate of proof of address issued by
the officer-in-charge of the jail
HINDU JOINT FAMILY (HINDU UNDIVIDED FAMILY-HUF)
 A Bank account may be opened in the name of a Hindu Joint Family (i.e., Hindu Undivided Family-HUF)
provided the HUF is not engaged in trading/business activity.
 The operation of the account of HUF must be by Kartha only as he alone has the capacity in law to enter
into contracts etc., on behalf of HUF.
ACCOUNTS OF MENTALLY ILL/RETARDED PERSONS
 The Mental Health Act 1987 accords that “mentally ill person” mean a person who is in need of
treatment by reason of any mental disorder other than mental retardation.
 Sections 53 & 54 of this Act provide for the appointment of guardians and in certain cases, Managers in
respect of the property.
 The prescribed appointing authorities are the District Courts and Collectors of Districts under the Mental
Health Act 1987.
 The National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple
Disabilities Act, 1999 provides for a law relating to certain specified disabilities. Clause (j) of Section 2

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 Canara Institute of Bank Management, Manipal

of that Act defines a “person with disability” to mean a person suffering from any of the conditions
relating to autism, cerebral palsy, mental retardation or a combination of any two or more of such
conditions and includes a person suffering from severe multiple disabilities
 This Act empowers a Local Level Committee to appoint a guardian, to a person with disabilities, who
shall have the care of the person and property of the disabled person.
 Branches are advised to take note of the legal position stated above and may rely on and be guided by
the orders/certificates issued by the competent authority, under the respective Acts, appointing
guardians/managers for the purposes of opening/operating bank accounts.
REPAYMENT UNDER JOINT DEPOSITS
Either or Survivor
 When all depositors are alive, Bank will be making payment to any one or more of the depositors
presenting the deposit receipt.
 The Bank will be making payment of the maturity proceeds to the surviving depositor who presents the
deposit receipt and furnishes the proper discharge without reference to the other depositor as well as
to the legal heirs of the deceased depositor.
No. 1 or survivor
 If the specified depositor is alive, payment will be made on request of the specified depositor.
 If the specified depositor is not alive on the date of maturity, the bank will be making payment to the
survivor without reference to the legal heirs of the specified depositor.
 If the specified depositor is not alive on the date of maturity, the bank will be making payment to the
survivor without reference to the legal heirs of the specified depositor.
 In case of premature repayment of term deposits by one of the joint depositors on the death of the
other with operation/repayment clause “Either or survivor” and Former or Survivor/s / No.1 or
survivor/s”, the surviving joint depositor may be permitted premature withdrawal of the term deposit,
only if there is joint mandate from the joint depositors to this effect.
Payable jointly
 When all depositors are alive, the deposit receipt should be discharged by all depositors for receiving
payment.
 If one or more of the depositor dies on or after maturity, the amount will be paid jointly to the surviving
depositors along with the legal heirs of the deceased depositor.
SAFE DEPOSIT LOCKERS
 The facility available at select branches and wherever it is available, allotment of safe deposit locker will
be subject to availability and compliance with other terms & conditions attached to the services.
 Safe deposit lockers may be hired by an individual (singly or jointly with another individual/s), HUFs,
Firms, Ltd. Co., Associates, Societies, Trusts etc.
 Safe Deposit Locker can be opened by the minor individually duly represented by the natural guardian
or jointly with natural guardian.
 Nomination facility is available to individual/s holding the locker singly or jointly.
 Joint locker holders can give mandate for access to the locker in the event of death of one of the holders
as similar to those for deposit accounts.
 In the absence of nomination or mandate for disposal of contents of lockers, with a view to avoid
hardship to common persons, the Bank will release the contents of locker to the legal heirs against
indemnity on the lines as applicable to deposit accounts.
REDRESSAL OF COMPLAINTS
 “Customer Day” is observed at all the offices of the Bank, across the organization, covering branches,
Regional Offices, Circle Offices and Head Office, on 15th of every month (next working day, if 15th is a
holiday ).
DEPOSITORS’ RIGHTS
 Right to Information
 Right to choose
 Right to avail/utilize the products and services
 Right to be heard and redressal of grievances
251/22 Policy guidelines on KYC/AML/CFT for FY 2022-23
 Operational Risk Management Committee responsible for any changes
 Principal Officer” means an officer nominated by the bank, responsible for furnishing information under
PMLA Rules
 Person: An individual ,A Hindu Undivided Family, A company, A firm, An association of persons or a body
of individuals, Every artificial juridical person, not falling within any one of the above persons ,Any
agency, office or branch owned or controlled by any of the above persons
 Transaction: a purchase, sale, loan, pledge, gift, transfer, delivery or the arrangement thereof and
includes- Opening of an account, Deposits, withdrawal, exchange or transfer of funds in whatever
currency, whether in cash or by cheque, payment order or other instruments or by electronic or other
non-physical means, The use of a safety deposit box or any other form of safe deposit, Entering into any
fiduciary relationship, Any payment made or received in whole or in part of any contractual or other legal
obligation, Establishing or creating a legal person or legal arrangement
 Suspicious transaction means a “transaction” including an attempted transaction, whether or not made
in cash, which, to a person acting in good faith gives rise to a reasonable ground of suspicion that it may

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 Canara Institute of Bank Management, Manipal

involve proceeds of an offence specified in the Schedule to the Act, regardless of the value involved;
appears to be made in circumstances of unusual or unjustified complexity , appears to not have economic
rationale or bona-fide purpose, gives rise to a reasonable ground of suspicion that it may involve
financing of the activities relating to terrorism.
 Four Pillars :-
i. Customer Acceptance Policy (CAP)
ii. Customer Identification Procedure
iii. Monitoring of Transactions
iv. Risk Management
 Customer Identification Procedure to be carried out at different stages :
 While establishing a banking relationship;
 While carrying out a financial transaction;
 When the Bank has a doubt about the authenticity or adequacy of the customer identification data it has
obtained;
 When bank sells third party products as agent;
 While selling Bank’s own products, payment of dues of credit cards/sale and reloading of prepaid/travel
cards and any other product for more than Rs. 50,000/-.
 When carrying out transactions for a non-account based customer, that is a walk-in customer, where the
amount is equal to or exceeds Rs. 50,000/-, whether conducted as a single transaction or several
transactions that appear to be connected;
 When the Bank has reason to believe that a customer (account based or walk-in) is intentionally
structuring a transaction into a series of transactions below the threshold of Rs. 50,000/-.
 Officially valid documents : Passport, Driving License, Aadhar Card , Voter Identity Card issued by Election
Commission of India , Job Card issued by NREGA duly signed by an officer of the State Government ,
Letter issued by the National Population Register containing details of name and address , Any other
document as notified by the Central Government in consultation with the Regulator.
 FOR LOW RISK CUSTOMER [WHERE SIMPLIFIED MEASURES APPLIED] OVD : identity card with applicant's
Photograph issued by Central/ State Government Departments, Statutory/ Regulatory Authorities, Public
Sector Undertakings, Scheduled Commercial Banks, and Public Financial Institutions; letter issued by a
Gazetted Officer, with a duly attested photograph of the person.
 Further, where simplified measures are applied, for the limited purpose of proof of address, the following
additional documents are deemed to be OVDs:
 Utility bill which is not more than two months old of any service provider -electricity, telephone, postpaid
mobile phone, piped gas, water bill ; Property or Municipal Tax receipt; Bank account or Post Office
savings bank account statement; Pension or family pension payment orders (PPOs) issued to retired
employees by Government Departments or Public Sector Undertakings, if they contain the address;
Letter of allotment of accommodation from employer issued by State or Central Government
departments, Statutory or Regulatory bodies, Public Sector Undertakings, Scheduled Commercial Banks,
financial institutions and listed companies. Similarly, leave and license agreements with such employers
allotting official accommodation; Documents issued by Government departments of foreign jurisdictions
and letter issued by Foreign Embassy or Mission in India.
 Accounts of Foreign students studying in India:
i. Branches may open a Non-Resident Ordinary (NRO) bank account of a foreign student on the
basis of his/her passport (with visa & immigration endorsement) bearing the proof of identity
and address in the home country together with a photograph and a letter offering admission
from the educational institution in India.
ii. Branches should obtain a declaration about the local address within a period of 30 days of
opening the account and verify the said local address.
iii. During the 30 days period, the account should be operated with a condition of allowing foreign
remittances not exceeding USD 1,000 or equivalent into the account and a cap of monthly
withdrawal to Rs. 50,000/-, pending verification of address.
iv. The account would be treated as a normal NRO account after verification of address and will be
operated in terms of existing guidelines issued in the Manual of instructions on Non-Resident
Deposits and Circulars issued from time to time.
v. Students with Pakistani nationality will need prior approval of the Reserve Bank of India for
opening the account.
 Accounts of Politically Exposed Persons (PEPs) resident outside India: Politically Exposed Persons are
individuals who are or have been entrusted with prominent public functions in a foreign country, e.g.,
Heads of States/ Governments, senior politicians, senior government/judicial/military officers, senior
executives of state-owned corporations, important political party officials, etc.
i. Bank shall gather sufficient information on any person/customer of this category intending to
establish a relationship and check all the information available on such person in the public
domain.
ii. Bank shall verify the identity of the person and seek information about the sources of funds
before accepting the PEP as a customer.

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iii. Bank shall also subject such accounts to enhanced monitoring on an ongoing basis. Branches
shall maintain a database of PEP accounts in the Branch. The above norms shall also be applied
to the accounts of the family members or close relatives of PEPs.
iv. The decision to open an account of a PEP as well as the decision to continue the business
relationship in the event of an existing customer or relatives of an existing customer
subsequently becoming a Politically Exposed Person (PEP), has to be taken by branch head in
branches headed by Scale IV and above. For all other branches, the decision is to be taken by the
executive overseeing MIPD & PP Section of the respective Regional Office/Circle Office.
 Accounts of persons other than individuals:
 Accounts of Companies Where the client is a company, certified copies of following documents or the
equivalent e-documents are to be submitted:
(i) Certificate of incorporation (ii) Memorandum and Articles of Association (iii) Permanent Account
Number of the company (iv) A resolution from the Board of Directors and Power of Attorney
granted to its managers, officers or employees to transact on its behalf. (v) Corporate
Identification Number (CIN) (vi) One copy of an Officially Valid Document containing details of
identity and address, one recent photograph and Permanent Account Numbers or Form No.60
of related beneficial owner, the managers, officers or employees, as the case may be, holding an
attorney to transact on the company’s behalf.

 Accounts of Partnership firms Where the client is a partnership firm, certified copies of following
documents or the equivalent e-documents are to be submitted: (i) Registration Certificate (ii) Partnership
Deed (iii) Permanent Account Number of the partnership firm (iv) One copy of an Officially Valid
Document containing details of identity and address, one recent photograph and Permanent Account
Numbers or Form No.60 of related beneficial owner, managers, officers or employees, as the case may
be, holding and an attorney to transact on its behalf.

 Accounts of Trusts Where the client is a Trust, certified copies of following documents or the equivalent
e-documents are to be submitted: (i) Registration Certificate (ii) Trust Deed (iii) Permanent Account
Number or Form No.60 of the trust (iv) One copy of an Officially Valid Document containing details of
identity and address, one recent photograph and Permanent Account Numbers or Form No.60 of the
related beneficial owner, managers, officers or employees, as the case may be, holding an attorney to
transact on its behalf.

 Accounts of Unincorporated association or a body of individuals: Where the client is an unincorporated

association or a body of individuals, certified copies of following documents or the equivalent e-
documents are to be submitted: (i) Resolution of the managing body of such association or body of
individuals (ii) Permanent Account Number or Form No.60 of the unincorporated association or a body
of individuals (iii) Power of Attorney granted to the person who will transact on its behalf. (iv) One copy
of an Officially Valid Document containing details of identity and address, one recent photograph and
Permanent Account Numbers or Form No.60 of the related beneficial owner, managers, officers or
employees, as the case may be, holding an attorney to transact on its behalf. (v) Such information as may
be required to collectively establish the legal existence of such association or body of individuals.

 Accounts of Proprietary Concerns For Proprietary concerns, Customer Due Diligence of the individual
(proprietor) are to be carried out and any two of the following documents or the equivalent e-documents
in the name of the proprietary concern should be submitted as a proof of business/activity: a)
Registration Certificate b) Certificate/license issued by the Municipal authorities under Shop &
Establishment Act. c) Sales and income tax returns. d) CST/VAT/GST certificate (Provisional/Final), e)
Certificate / registration document issued by Sales Tax / Service Tax / Professional Tax authorities. f) The
complete Income Tax return (not just the acknowledgement) in the name of the sole Proprietor where
the firm‟s income is reflected, duly authenticated/acknowledged by the Income Tax Authorities. g) Utility
bills such as electricity, water and landline telephone bills. h) IEC (Importer Exporter Code) issued to the
proprietary concern by the office of DGFT / License/certificate of practice issued in the name of the
proprietary concern by any professional body incorporated under a statute.

 For opening accounts of juridical persons not specifically covered above, such as Societies, Universities
and Local bodies like Village Panchayats: The certified copies of the following documents or the
equivalent e-documents thereof are to be submitted: i) Document showing name of the person
authorized to act on behalf of the entity; ii. (a) Any Officially Valid Document which contains proof of
identity/address in respect of person holding an attorney to transacts on its behalf and (b) PAN or Form
60 as defined in the Income Tax Rules, 1962 issued to the person holding a power of attorney to transact
on its behalf. iii) Such documents as may be required to establish the legal existence of such an
entity/juridical person

 Accounts of Foreign Portfolio Investors (FPIs) for Portfolio Investment Scheme (PIS): Accounts of FPIs
which are eligible/ registered as per SEBI guidelines, for the purpose of investment under Portfolio
Investment Scheme (PIS), shall be opened by accepting KYC documents as detailed in Annex V, subject

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 Canara Institute of Bank Management, Manipal

to Income Tax (FATCA/CRS) Rules. Provided that banks shall obtain undertaking from FPIs or the Global
Custodian acting on behalf of the FPI that as and when required, the exempted documents as detailed
in Annex V will be submitted.

 Client accounts opened by professional intermediaries: When the Bank has knowledge or reason to
believe that the client account opened by a professional intermediary is on behalf of a single client, that
client shall be identified. Bank may hold 'pooled' accounts managed by professional intermediaries on
behalf of entities like mutual funds, pension funds or other types of funds. Branches shall not open
accounts of such professional intermediaries who are bound by any client confidentiality that prohibits
disclosure of the client details to the Bank. Where funds held by the intermediaries are not co-mingled
at the Bank and there are 'sub-accounts', each of them attributable to a beneficial owner, all the
beneficial owners shall be identified. Where such funds are co-mingled at the Bank, the Bank shall still
look into the beneficial owners. Where the Bank rely on the 'customer due diligence' (CDD) done by an
intermediary, Bank shall satisfy itself that the intermediary is a regulated and supervised entity and has
adequate systems in place to comply with the KYC requirements of the customers. The ultimate
responsibility for knowing the customer lies with the Bank.

 Beneficial Ownership- A natural person ultimately owns or control client and/or the person on whose
behalf the transaction is being conducted, and includes a person who exercises’ ultimate effective control
over a juridical person.
Control Ownership Interest
i. Company (More than 25%)
ii.Partnership (More than 15%)
iii.Unincorporated Assocn or BOI (More than 15%)
Iv.Trust (15% or more)

 Accounts of Non Profit Organsiations - All transactions involving receipts by these NPOs of value more
than Rs.10 lac or its equivalent in foreign currency is to be reported to FIU-IND centrally from Head Office.
However, if the Bank has reason to believe that a customer is intentionally structuring a transaction into
a series of transactions below the threshold of Rs. 10 lac; the Bank shall consider filing a Suspicious
Transaction Report to FIU-IND.

 Accounts operated by Power of Attorney Holders/Letter of Authority Holders: In case of accounts

operated by Power of Attorney (POA) Holders / Letter of Authority (LOA) Holders, KYC documents shall
be obtained from such POA holders/ LOA holders and records shall be maintained/ updated in the
system.

 Customer Due Diligence requirements (CDD) while opening accounts-

CDD Procedure and sharing KYC information with Central KYC Records Registry (CKYCR):
 Branches shall capture the KYC information for sharing with the CKYCR in the manner mentioned in the
Rules, as required by the revised KYC templates prepared for ‘individuals’ and ‘Legal Entities’ as the case
may be.
 Government of India has authorised the Central Registry of Securitisation Asset Reconstruction and
Security Interest of India (CERSAI), to act as, and to perform the functions of the CKYCR vide Gazette
Notification dated November 26, 2015.
 The ‘live run’ of the CKYCR would start in phased manner. Accordingly, in the first phase, branches shall
upload the KYC data with CERSAI, in respect of new individual accounts opened during the day. Bank
shall prepare a plan for uploading the data in respect of existing individual accounts into CKYCR server.
 Monitoring of Transactions :- Ongoing Due Diligence
i. Depend on Risk Category
ii. Transaction Monitoring
iii. Risk Categorisation (Review and Updation)
 Customer Risk" in the present context refers to the money laundering and terrorist funding risk
associated with a particular customer from a Bank's perspective.
 This risk is based on risk perceptions associated with customer profile and level of risk associated with
the product & channels used by the customer.
 Customer Risk Categorisation: Risk Parameters - The first step in process of risk categorization is selection
of parameters, which would determine customer risk. Risk Categorisation of the customers shall be done
according to the risk perceived while taking into account the above aspects.
Risk Categorisation of customers shall be based on combination of above parameters. Among the
Chosen parameters, highest risk grade will be assigned as overall Risk for the customer.
 Updation of KYC Records :- LR: 10 YRS; MR: 8 YRS;HR: 2YRS
Average Balance in SB , Current Account & amount of Deposit

Account Type High Medium Low

All Deposit accounts Rs 100 lacs & Rs.25 lakh & above but less Less than Rs 25 lac
(SB+CA +TD) above than Rs.100 lakh

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 Canara Institute of Bank Management, Manipal

 Review of risk categorization of customers at a periodicity of not less than once in six months i.e., 30th
Jun and 31st December every year.

 COMBATING FINANCING OF TERRORISM: The United Nations periodically circulates the lists of
individuals and entities suspected of having terrorist links, and as approved by its Security Council(UNSC).
Reserve bank circulates The United Nations Security Council Resolutions (UNSCRs) received from
Government of India to all banks and FIs. Bank shall update the lists and take them into account for
implementation of Section 51Aof the Unlawful Activities (Prevention) (UAPA) Act1967.
 Branches are required to cross check the customer names with the UN list of terrorist
individuals/entities, both of prospective customer (before opening the account) as well as of existing
customers for any resemblance. If the particulars of any of the accounts have resemblance with those
appearing in the list, those accounts to be reported to RBI/FIU-IND
 Freezing of Assets under Section 51A of unlawful activities -Prevention Act1967, Amendment Act, 2008
and Government Order dated August 27, 2009 - In terms of Section 51A, the Central Government is
empowered to freeze, seize or attach funds and other financial assets or economic resources held by on
behalf of or at the direction of the individuals or entities listed in the Schedule to the Order, or any other
person engaged in or suspected to be engaged in terrorism.
 Prohibit any individual or entity from making any funds, financial assets or economic resources or related
services available for the benefit of the individuals or entities listed in the Schedule to the Order or any
other person engaged in or suspected to be engaged in terrorism.

 Reporting Requirements to FIU-IND :

Report Parameter for Reporting Due date for
Submission

CTR More than Rs.10 Lakhs or its equivalent in Foreign Currency OR 15th of Succeeding
series of cash transactions integrally connected to each other Month
valued below Rs.10 Lakhs or its equivalent foreign currency

CCR All cash transactions where forged or counterfeit currency notes 15th of Succeeding
or bank notes have been used as genuine or any forgery of Month
valuable security or document has taken place facilitating the 15th of Succeeding
transactions Month

NTR All transactions involving receipts by Nonprofit organizations of 15th of Succeeding

[NPO Tr value more than Rs,10.00 lakhs or its equivalent foreign currency Month
REP]
CBWTR All cross border wire transfers of the value of more than Rs.5.00 15th of Succeeding
[Cross lakhs or its equivalent foreign currency where either origin or Month
Border destination of funds is in India
Wire
Transfer]
STR All suspicious transactions whether or not made in Cash Not Later than 7
[Suspicio working days from
us Tr the date of
Rep] identification of
suspicious
transactions
 Freezing and Closure of Accounts
– For KYC –Non Compliant Account.
– Due Notice : 3 Months to comply with KYC [Partial Freezing]
– Second Reminder: Further period of 3 Months [Total Freezing]
– Branch may Close/If identity not clear, then STR with FIU-IND to be filled.
 Organisation setup & roles & responsibilities :
 Risk Management Committee of Board (R M C B):
i. Approve and shall drive the effective management of the “Policy Guidelines on KYC/AML/CFT-
2022-23 for domestic branches” for adoption.
ii. Provide senior management with clear guidance and direction.
iii. Review the status of implementation of KYC/AML/CFT norms, initiative taken/proposed to
ensure compliance to the regulatory guidelines.
iv. Undertaking regular review of strategies and arrangements for their continued relevance, safety
and soundness and lay down appropriate approval authorities.
 Operational Risk Management Committee (ORMC) shall be responsible interalia for:
i. Permitting the Policy and recommending the same to the Risk Management Committee of Board
(RMCB) for adoption.
ii. Acting as a technical Committee to the Board of Directors

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 Canara Institute of Bank Management, Manipal

iii. Reviewing the strategies & arrangements for their relevance and safety & soundness and making
appropriate recommendations to RMCB.
iv. Ensure the remedial steps taken if breaches are identified.
 Development Section, Strategic Planning & Development Wing:
i. Issuance of guidelines pertaining to KYC/AML/CFT for domestic deposits and
implementation/monitoring of the same in liaison with DIT Wing.
ii. Ensure implementation/monitoring and review of risk categorization of customers by putting
suitable reporting/monitoring mechanism.
iii. Ensure proper maintenance of MIS for customer risk categorization and migration data.
iv. Shall review fixing of parameters on Risk Categorization as and when notified.
v. SP&D along with Technology Operations Wing shall identify the parameters available in the
system for risk categorization through the system as per the model suggested in the policy.
252/22 Deendayal Antyodaya Yojana – National Urban Livelihood Mission (DAY-NULM) – Extension/Continuation of
the Mission period with the existing components
 Extended/continued with the existing components for a further period of six months beyond March,
2022 or till the updated guidelines is communicated by MoHUA in this regard, whichever is earlier.
253/22 Optimum availment of input tax credit (ITC) for FY 21-22. Branches/offices should follow-up with vendors and
ensure availablity of input tax credit (ITC) for the bank.
 Reconciliation of Purchase Register (GSX 06- GC GST 420020800) for FY 21-22 with Bank’s GSTR-2A/2B
to avail ITC.
 Purchase Register:: http://misreports/MisReports/GST/ANNUAL_FY_2021_22/Purchase_Register/
 GSTR2A/2B:: http://misreports/MisReports/GST/ANNUAL_FY_2021_22/GSTR_2A2B/Normal_Charge/
 Submission of Compliance Certificate as per Annexure I to be submitted by Branches/Offices to BSIC
Circle Office on or before 20th September 2022.
 If Bank does not get Input Tax Credit of GST paid, such GST payments will result in leakage of income and
matter will be viewed seriously and accountability will be fixed as per Bank Extant Guidelines.
254/22 Extraction of “Credit Information Report/CIBIL MSME Rank (CMR) ” from Lending Automation Processing
System (LAPS)
 for secured MSME loans up to Rs 10.00 lakhs , one CIR
 for secured MSME loans above Rs 10.00 lakhs , two CIRs
 unsecured MSME loans up to Rs 2.00 lakh one CIR
 unsecured MSME loans above Rs 2.00 lakhs, two CIRs
255/22 Revised SOP on Automated system for Compliance Information (ASCi) Package
 This circular supersedes the all previous HO Circulars on “SOP for Compliance function – QCC
Application.
 Centralized web-based monitoring of compliance obligations of all officers (Scale I and above).
 Web-based submission of compliance certificate e.g. for officer (15 days from the end of quarter),
Branches /RO/CO/Wings (17/20/22/17 days from the end of quarter).
 At present Maximum APAS marks allocated is 05 (five) per financial year.
256/22 Risk Management system in bank - guidelines on country risk management
Modification in country risk classification of Sri Lanka with effect from 07/04/22
 ECGC vide their Circular HO/CUD/ Sri Lanka / 194/22-23 dated 06/04/22 has modified the country risk
classification of Sri Lanka with effect from 07/04/22.
 Revised rating and type of cover is C1, RCC1 (Restricted cover category).
 Seek approval from concern authority for sanctioning of export credit facilities.
257/22 Payment of Service Charges payable to Automobile Dealers & their Sales Executives
RO Head is permitted to authorize flexible payment of Service Charges .The payment of service charges to Car
Dealers and Sales Executives, i.e., 1.30% of loan amount with a max of Rs. 50,000/- and Rs. 1,500/- respectively,
can be made flexible between both within the overall permissible cap.
258/22 Seeking Report from Central Economic Intelligence Bureau (CEIB) in respect of prospective borrowers and NPA
borrowers whose exposure exceeds Rs 50 Crores.
259/22 Negotiation of documents drawn under select foreign bank LCs (PBLCs)
 Each LC discounting shall be permitted on Single Transaction basis.
 The minimum amount of each bill under this scheme shall not be less than Rs 5 lacs or equivalent in
foreign currency.
 Circle Head CAC (CGM/GM/DGM) may permit Negotiation of Bills drawn under Prime Bank LCs (PBLCs),
aggregating upto 10% of the sanctioned Fund Based Working Capital limit of the party from our Bank or
upto Rs 25 Crores whichever is less in case of accounts rated up to Moderate Risk (CNR I to VIII)
irrespective of the present sanctioning authority of the existing limits.
 The borrowers rated as High Risk (CNR IX, X and XI) and default (CNR D) are not eligible under the scheme.
 In respect of proposals for negotiation which are beyond the above limits, the same shall be permitted
by CGM/GM-HOCAC and above authorities only.
 ED-CAC and above authorities may permit any relaxations in the above guidelines.
 The negotiation of bills under PBLCs shall be permitted in respect of beneficiaries who are constituent
borrowers only.
 The Letter of Credit shall be restricted to our bank only.

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 Canara Institute of Bank Management, Manipal

 In respect of sanctions made by Circle Head CAC, all such sanctions shall be sent to CA&M Wing, HO for
Review (on monthly basis)
 In respect of Head Office sanctions, the extant guidelines on review shall be adhered.
 For determining the sanctioning authority, other credit limits enjoyed by the party should not be
aggregated.
260/22 Premises policy for FY 2022-23
 AREA NORMS – Branch / Office Premises: The above area norms shall, as far as possible, include space
for On-Site ATM also.
CATEGORY NEW BRANCH / OFFICE EXISTING BRANCH / OFFICE
Carpet Area (Alternate & Renewal)
Carpet Area
RURAL Upto 1500 Sft Upto 1500 Sft
SEMI-URBAN Upto 1700 Sft Upto 1900 Sft
URBAN Upto 2000 Sft Upto 2200 Sft
METROPOLITAN Upto 2000 Sft Upto 2500 Sft
 Depending upon size of vault the Carpet area for Currency chest shall be with maximum area as follows:
Type of Currency Chest Maximum Area
Up to AAA category 3500 sft
Mega Currency Chest / 7000 sft
Cash Processing Centre
 Depending upon requirement, maximum carpet area for ROs, RAHs & SME Sulabhs, irrespective of the
category of the Office, shall be as under:
Regional Office Upto 5000 Sft
RAH / SME Sulabh Upto 2500 Sft

 GM, GA Wing, HO is the sanctioning authority to approve the additional area not more than 10% of the
area originally indicated.
 Committee of CGMs/ GMs at HO shall be delegated with powers to permit upto 30% increase over and
above the stipulated Area Norms.
 RENTAL LIMITS WITH DELEGATED POWERS– BRANCH / OFFICE PREMISES: The Initial Annual Rental
Outgo limits fixed (inclusive of all Taxes & other outgoings) excluding GST for various Centers are as
under-
Centre Amount (Rs. in Initial rent
lacs)
CGM/GM, CO DGM, AGM,Circle up to Rs.psft p.m exclusive of
CGM/GM, GA Circle Head all taxes and other outgoings
Wing Head

Mumbai & Greater 60.00 -- --

Mumbai
Delhi & NCR 50.00 30.00 25.00 175
Other Metro 30.00 25.00 20.00 90
Urban 12.00 10.00 8.00 50
Semi-Urban 8.00 6.00 4.00 35
Rural 3.00 2.50 2.00 20

 Committee of CGMs/GMs at HO have been delegated with powers to permit upto 20% increase over
and above rent psft p.m and Initial Annual Rental Outgo in respect of fixing of new / alternate premises
and renewal of lease of existing premises.
 The Management Committee of the Board shall be vested with powers to deal with Premises proposals
with rental outgo of above Rs.300/- psft pm exclusive of all taxes and other outgoings in respect of
Mumbai, Greater Mumbai, Delhi & NCR Centres and proposals involving rental outgo of above Rs.200/-
psft pm exclusive of all taxes and other outgoings in respect of all other Centres with recommendations
of the Premises Committee at H.O.
 Respective sanctioning authorities can permit rental deposit up to 3 months’ rent in respect of premises
proposals falling up to their delegated powers.
 CGM / GM, GA Wing, HO may permit Rental Deposit upto 6 months’ rent, in respect of proposals falling
under HO powers. Concerned sanctioning authority can also consider rental deposit without linking the
same to loans granted for construction of premises.
 Lease for Office / Branch premises is fixed for a minimum period of 10 years with reasonable rental
increase after the initial period of 5 years.
 In respect of Government / Quasi Govt bodies / Authorities who are not agreeable to our usual term of
10 years, concerned sanctioning authority can permit relaxation in the period of lease, provided the
proposal otherwise falls within their delegated powers.
 Committee of CGMs/GMs at HO have been delegated with powers to permit any period of lease in
deviation of laid-down policy norms of 10 years depending upon merits in respect of premises proposals
falling upto their delegated powers.

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 Canara Institute of Bank Management, Manipal

 Rent originally fixed for the entire lease period should be maintained except in case of court
intervention. Any modification to sanction terms during currency of lease period shall be referred to
Premises committee on merits.
 Rental increase after initial period / block may be permitted by the respective Sanctioning Authorities
subject to the following maximum percentage limits.
Centre Increase
Metro 20% to 25%
Urban 15% to 20%
Semi-Urban/Rural 10% to 15%
 Committees of CGMs/GMs at HO have been delegated with powers subject to the following maximum
percentage limit after initial period/block.
Centre Increase
Metro 25% to 30%
Urban 20% to 25%
Semi-Urban/Rural 15% to 20%
 Circle Head may permit renewal of lease with reasonable rental increase within their delegated powers,
subject to adhering to the laid-down policy norms. However, CGM/GM, G A Wing, HO may permit
proposals involving renewal of lease in respect of Rural Centres beyond the prescribed area norms of
1500 sft within his delegated rental powers duly complying with other laid-down policy norms.
 Bank shall report the proposals involving transactions of Rs.25.00 lacs and above to CBI‚ in respect of
rent (per month), quantum of rental deposit.
 Extension of lease period beyond one year shall be permitted by next higher authority for a maximum
period of One year.
 The recommended minimum a r e a f o r a strong room is 150 sqft in rural places, 200 sqft in Semi urban
/urban places and 300 sqft in metropolitan centres.
 No new cabins shall be provided for Officers/ Executives upto Scale IV working in Administrative Offices/
Units. Half height cubicles not exceeding 80 sqft shall be provided to the Executives in Scale IV.
 Circle Head only shall be empowered to permit hiring/ renewal of the generator facility in Branches/
Offices irrespective of the capacity of the DG set. Circle Offices will review the generator facility once in
12 months where acute power cut is prevalent almost throughout the year.
 ATM / E – LOUNGE/ CAN EXPRESS PREMISES – On-Site ATM / E – LOUNGE/ CAN EXPRESS has to be
accommodated within the branch premises without any additional rent. Wherever it is not possible to
accommodate the ATM / E – LOUNGE/ CAN EXPRESS within the premises, then separate premises of
need based area with a minimum of 70 sqft may be acquired for installing ATM / E – LOUNGE/ CAN
EXPRESS.
 in respect of subsisting leases where the annual rental income of the Premises owner (PO) is more than
Rs 10 lacs p.a , any representation for payment of GST on rent by the Bank has to be referred to Head
Office to be placed before the Premises Committee.
 Concerned sanctioning authority at Circles / HO can permit rental deposit upto 3 months’ rent in respect
of premises proposals falling up to their delegated powers. CGM / GM, GA Wing, HO may permit Rental
Deposit upto 6 months’ rent, in respect of proposals falling under HO powers. Concerned sanctioning
authority can also consider rental deposit without linking the same to loans granted for construction of
premises.
 Premises is to be fixed for a minimum period of 10 years with reasonable rental increase after the initial
period of 5 years. In respect of Government / Quasi Govt bodies / Authorities who are not agreeable to
our usual term of 10 years, concerned sanctioning authority can permit relaxation in the period of lease,
provided the proposal otherwise falls within their delegated powers.
 FIXING/RENEWAL OF QUARTERS TO OFFICERS/EXECUTIVES - Area & Accommodation norms - Applicable
to Mumbai, Delhi, Kolkata, Chennai & Bangalore.

Category of the officer Plinth area Accommodation

Scale I 500-600 Single Bed Room
Scale II & III 700-800 Two Bed Rooms
Scale IV & V 1000-1200 2/3 Bed Rooms with Garage / Parking Space
Scale VI, VII & VIII 1400-1500 2/3 Bed Rooms with Garage / Parking Space

 Area & Accommodation norms – Other centres

Scale I One Bed Room, Hall, Kitchen & Toilet Carpet Area of about 500 - 600 sft
Scale II & III Two Bed Rooms, Hall, Kitchen & Toilet Carpet Area of about 700 - 800 sft
Scale IV & V Three Bed Rooms, Hall, Kitchen & Toilet with safe vehicle parking facility
Carpet Area of about 1000 - 1200 sft
Scale VI, VII & VIII Three Bed Rooms, Hall, Kitchen & Toilet with safe vehicle parking facility
Carpet Area of about 1400 - 1500 sft

 Delegation of Powers:
Category Delegation of Powers

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 Canara Institute of Bank Management, Manipal

Officers in scale I,II DM/AGM at CO/RO

&III * DM/AGM , G A Wing, HO in respect of Officers at HO
Executives in scale IV AGM at CO/RO
* AGM , G A Wing, HO in respect of DMs at HO
Executives in scale V DGM at Circles / DGM heading RO
DGM , G A Wing, HO in respect of AGMs at HO
Including cases involving rent beyond rental ceiling.
Executives in scale VI CGM/GM at CO in respect of DGMs coming under the respective Circles
CGM/GM, G A Wing, HO in respect of Circles headed by DGMs and DGMs
at HO
Including cases involving rent beyond rental ceiling.
Executives in scale Executive Director
VII/VIII
Officials / Executives As per policy framed by IO&CCR Wing – CGM/GM, IO & CCR Wing, HO
upto Scale VI posted
to Foreign branches/ Deviation from the policy framed by IO&CCR Wing - Premises Committee
representative offices HO directly by IO & CCR Wing, HO

 Advance rent or Rental deposit equivalent to 3-6 months’ agreed rent or the rental ceiling, whichever is
less can be considered provided the monthly rentals / rental deposit are directly remitted to landlords’
account by the Bank.

 PROVIDING QUARTERS FURNITURE TO OFFICERS / EXECUTIVES:

Scale I: 1.50 lakhs, Scale II: Rs. 2.00 lakhs, Scale III: Rs. 2.25 lakhs, Scale IV: Rs. 2.50 lakhs,
Scale V: Rs. 3.00 lakhs, Scale VI: Rs. 4.25 lakhs, Scale VII: Rs.5.00 lakhs, Scale VIII: Rs. 6.00 lakhs,

 Purchase of furniture/ fixtures shall be permitted within a maximum of three numbers of lots in each
scale. Officers/ Executives who have already purchased furniture/ fixtures in three or more lots & are
still having unavailed limit, shall avail the remaining limit in a single lot. If the monetary ceiling/ limit of
the scale is enhanced in between for any reason, the eligible Officers shall be entitled to purchase the
remaining limit in a single lot.

 If the monetary ceiling/ limit of the scale is enhanced in between for any reason, the eligible Officer shall
be entitled for claiming the differential amount for purchase of new furniture / fixtures as per the list,
even if he/ she remains in the same Scale from the date of last availment.

 Maintenance expenses in respect of existing furniture/fixtures irrespective of their age and also for the
new items purchased will be reimbursed at 5% of the total Original Cost Price of furniture / fixtures held
by them OR the monetary ceiling/limit applicable to the scale of the Officer whichever is less. The
reimbursement shall be after completion of THREE YEARS from the date of each purchase.

 Maintenance expenses can be accumulated for a maximum period of 3 years accrued on or after
24.12.2019. However, such accumulation shall necessarily be availed within the completion of 10 years
from the date of purchase of furniture / fixtures i.e., no maintenance expenditure will be considered
after completion of 10 years from the date of original purchase.
 Monetary limit for handsets:
CATEGORY OF OFFICIALS MONETARY LIMIT @ (Rs.)
CGMs / GMs 70000
DGMs heading CO/RO 30000
Other DGMs 25000
AGMs (including RO heads) DM (RO head) 15000
Other DMs/CMs 10000
Branch heads, Section heads (HO/CO/RO), In-Charge Sr. 8000
Managers/Managers of FDs/RAH/SME Sulabh, Inspecting
Officers, Marketing Officers, Staff in Marketing Section
In-Charges of Secretariats at HO/CO 8000
Security Officers in Scale I , II, III 8000
Lead District Managers 8000
All Managers/Sr. Managers other than specified above --
 Eligible Executives and officers have to use the mobile phones for three years from the date of
procurement and the same is to be used even on transfers. On completion of 3 years from the date of
purchase the mobile phones can be retained by the concerned Executives /Officials free of cost.
261/22 Policy on safe deposit lockers & safe custody services
 Policy on Safe Deposit Lockers & Safe Custody Services has been reviewed & approved by the Board for
FY 2022-23.
 Proportionate rent for the unexpired period (number of days) to be refunded on surrender of locker.

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 In case of non payment of locker rent for three consecutive years, Bank shall proceed for break open of
locker if no response is received from the defaulting hirer within 30 days of notice.
 25% concession on locker rent is permitted to employees/ex-employees. Three years advance rent need
not be obtained in case of staff members.
 12 operations in locker per annum are free. Staff/ Ex-staff are exempted from collection of charges
beyond 12 operations.
 The renewal date for all Safe Deposit Lockers shall be 1st April of every year irrespective of the date on
which the lockers were hired first.
 A hirer can authorize his agent to operate his locker either by giving such an authority in writing in the
Safe Deposit Locker Agreement (NF.285) itself or by giving a separate mandate in NF.114.
 Penal charges are to be collected in addition to actual rentals if the delay is

Up to and inclusive of Additional % of applicable

annual rental
One quarter 10%
Two quarter 25%
Three quarter 40%
Four quarter 50%
One year and above 100%

 When the period of hire expires, if the hirer desires to surrender the locker, request letter in duplicate
copy is to be submitted by self or signature of all the hirers in case of joint holder.
 Lockers are broken open in the following cases: (i) if the hirer loses the key and requests for breaking
open the locker at her /his cost; or (ii) if the Government enforcement agencies have approached the
bank (iii) if the bank is of the view that there is a need to take back the locker as the locker hirer is not
co-operating or not complying with the terms and conditions of the agreement. (iv) When hirer default
due to non-payment of locker rent (v) Emergent Situations
 Where the locker is held in the name of a minor, the nomination should be made only by a person lawfully
entitled to act on behalf of the minor.
 Nomination Facility: contents of the lockers can be given to the nominee provided the nomination is duly
registered with the branch.
 If the locker remains inoperative for a period of 7 years and the locker-hirer cannot be located, even if
rent is being paid regularly, the bank shall be at liberty to transfer the contents of the locker to their
nominees/legal heir or dispose of the articles in a transparent manner, as the case maybe.
 Settlement of claim where nomination is not available:
Solely hired lockers: Legal heir(s) of the deceased/a person mandated by the legal heir(s)
Lockers held in joint names without nomination (operated jointly): legal heirs
 Time limit for settlement of claims:15 days from the receipt of claim
 Compensation Policy/ Liability of the Bank:
 The Bank shall not be liable for any damage and/ or loss of contents of locker arising from natural
calamities.
 Compensation for safe deposit locker in case of fire, theft/ burglary/ robbery, dacoity, building collapse
is 100 times of prevailing annual rent.
 Insurance coverage of locker contents by the customer-NA
 Balancing of vacant lockers should be extracted once in six months (PRR18D)– March\September
 PRR.22-Statement of position of Safe Deposit Lockers
 A SAFE CUSTODY SERVICE- Accepting article for safe custody is one of the subsidiary services rendered
by the Bank to most valued customers.
 An application as per format in Appendix-19 of MOI for Safe custody lockers & Safe custody services.
Specimen signature of on NF.109.
 Generally, sealed envelopes, sealed packets and sealed boxes of small size with distinctive seal of his
own or his signature in ink may be obtained across the folds of the cloth used for packing the Box / Parcel.
 When sealed envelope said to contain Wills are deposited, instructions should be obtained in writing as
to the disposal in the event of death of the depositor.
 Safe Custody Receipt NF.338 should be issued for all articles deposited for safe custody.
 Safe Custody of Duplicate set of keys of other Branches / Banks. Such requests should be entertained
free of charge.
 For defence personnel / ex-servicemen for safe custody of wills, facility is given free of charge subject to
the individuals maintaining account at any of our branches.
 No charges are to be collected for safe custody services extended to government departments / under
takings and quasi government bodies that have their dealings with our Bank and have extended good
business support.
 Safe Custody Register NB.53.
262/22 Implementation of online facility through HRMS package for submission of request for Third Place Operation
by the employees

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 Canara Institute of Bank Management, Manipal

263/22 Implementation of online facility through HRMS package for submission of request for updation of dependent
details by the employees.
264/22 Implementation of online facility through HRMS package for submission of request for change of place of
domicile by the employees.
265/22 Guidelines on loan to value (LTV), risk weights and margin for individual housing loans

LTV Ratio (%) Risk Weight Standard Asset Provisioning (%)

≤ 80 35 0.25 %
≤ 80 ≤ 90 50

Margins :-
Amount of Housing Loan In case of New House / Flat & Old In case of Old House /
House / Flat (Upto 10 years old Flat (> 10 years old)
Upto Rs. 30 lakhs 10%
Above Rs. 30 lakhs & upto Rs. 75 20% 25%
lakhs
Above Rs. 75 lakhs 25%
266/22 SCLCSS MIS portal will be open throughout the year from the reference date for accepting SCLCSS subsidy
claims.
267/22 “Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS)” Extension of the validity of the scheme till
30.06.2022
268/22 “Loan Guarantee Scheme for the Covid Affected Tourism Service Sector (LGSCATSS)” of M/s NCGTC Ltd. to
finance registered Tourist Guides (recognized/ approved by M/o Tourism and State Govts/ UT Administrations)
and Travel & Tourism Stakeholders recognized/ approved by the Ministry of Tourism, Govt. of India –
Modifications in existing guidelines.
 Stipulation of minimum credit score of 650 as per Credit Information Reports (CIRs) from CICs i.e.
CIBIL/CRIF/EQUIFAX/EXPERIAN for considering business loans to individuals under the subject scheme,
has been dispensed with. However, such CIRs shall be generated and perused for identifying instances
of default in existing loans availed from Banks/FIs.
 Validity of the subject scheme has been extended till 31st March, 2023, or till guarantees for an amount
of Rs. 250 crores are issued under the scheme, whichever is earlier.
269/22 Standard operating procedure (SOP) on pre-audit exercise
Before commencement of RBIA of the Branch, the RO concerned shall ensure that branches undergo the process
of pre-audit exercise at least one month ahead of RBIA whereby the branches will resort to self-inspection of
compliances.
270/22 Housing-cum-solar loan (619)- modification in subsidy guidelines
Capital Finance Assistance (CFA) for Residential Sector (with or without Housing Loans), subject to maximum 10
KW per house along with Central Financial Assistance (CFA) @ 40% of benchmark cost upto 3 kW+20% for RTS
system above 3 kW and up to 10 kW.
271/22 Linking of retail loan accounts under repo linked lending rate of interest (rllr) regime – reiteration of guidelines
272/22 Periodicity & Participation in Consortium meetings
 In the case of consortium accounts where we are leader:
i.if the credit limits sanctioned are Rs.25 Crores and above should be presided by the CGM/GM
ii. If the credit limits sanctioned are less than Rs.25 Crores should be presided by the DGM
 In the case of consortium accounts where we are member: consortium meetings are to be attended by an
official not less than the rank of Divisional Manager at Circle.
All meetings stated above presence of branch in charge is compulsory.
273/22 Modifications in spread over RLLR on Rupee Loan and Advances to MSME borrowers (other than Schematic
Lending)
274/22 Credit of Foreign Contribution by Banks without permission of Ministry of Home Affairs-all branches/offices
should ensure that any fund flow from Donor agencies placed under Prior Reference Category (PRC) by MHA
to any person,NGO/Organisation in India may be brought to the notice of MHA so that funds can be allowed
to be credited into the account of the recipient only after clearance/prior permission of MHA.
275/22 Procedure for implementation of change of option by a Central Government Pensioner/ Family pensioner from
FMA to CGHS (OPD) facility and vice-versa.
276/22 Board Approved Bancassurance Business Policy for FY 2022-23
277/22 Board Approved Mutual fund Business Policy for FY 2022-23
278/22 Credit Review and Monitoring Policy For FY 2022-23
 Loan Sanctions made by each sanctioning authority at Branch/Offices shall be placed before the next higher
authority, not below Scale IV/Review Committee at Circle/RO, within the stipulated time frame.
 Fresh sanctions, renewals and/or enhancements. In addition, Adhoc/ST limits, Holding on operation made
by the sanctioning authority shall be placed before the reviewing authority.
 Aspects to be checked: Exercise of credit sanctioning powers within the scheme of delegation of sanctioning
powers and other guidelines, adherence to internal loan policies, procedures and applicable
laws/regulations, assessment of quality of the loan asset, precaution taken/ advised to safeguard the
interest of the bank, nature and adequacy of loan covenants.

परिपत्र साि: Gist of Circulars 66

 Canara Institute of Bank Management, Manipal

 The reviewing authority shall convey the observations/instructions if any, thereon to the sanctioning
authority for suitable action. In case higher authority has accorded post sanction clearance to any credit
proposal, the same need not be subjected to review again by the reviewing authority.
 All sanctions/change in terms and conditions of sanction including acceptance of alternative security,
dilution in security, reduction in margin, waiver of personal guarantee and/or corporate guarantee or any
other modifications affecting the proposal are subject to review by the reviewing authority.
 All sanctions up to Rs.5.00 lakhs & In case of SHGs Rs. 6.00 lakhs to be sent for review.
 All Retail loans sanctioned by Manager/Sr.Manager of RAH/RAH-in-charge shall be reviewed by next higher
individual authority at RO through online pre- disbursement review of loan sanction.
 Upto moderate risk, review and extension of tenability may be permitted for a maximum period of six
months extension; on a single occasion shall not exceed 3 months.
 Branches/Offices to submit the following sanctions also to the next higher authority for review.
 Second extension of tenability of limits. 2. Restructuring/ rephasement of account. 3.
Modification/substitution/dilution of security. 4. Reduction in Margin. 5. Waiver of Personal
Guarantee/Corporate Guarantee. 6.Any other modification affecting the credit decision/proposal.
 Borrowers rated High Risk, in exceptional cases, review & extension of tenability of limits can be permitted
only once & for a period not exceeding 2 months. Copy to be forwarded to the CA&M Wing, HO for review.
 Sanctions made by Branch in Charge who are due to retire/who have resigned/who have opted for VRS
during the period of 3 months prior to date of their relief shall be subjected to review by the next higher
authority not below Scale IV/respective Review committees at HO/CO/RO.
 In respect of Circle Head CAC sanctions including GM-CO-CAC sanctions, RM&CRM Section at CO shall report
the sanctions made by Circle Head CO CAC including GM-CO-CAC on fortnightly basis along with copy of
office note for sanction with orders of Circle Head CAC/GM-CO-CAC to CAM Wing, HO within 7 days from
the closure of the fortnight. At Head Office level, all sanctions of GM/CGM HO CAC are to be reported to
CAM Wing every fortnight for review.
 Taken over accounts other than Retail Lending Loans is to be carried out at 6 months’ intervals for one year.
In respect of Circle Head sanctions, review exercise is to be done at CAM wing.
 Takeover of loans with exposure up to Rs. 100.00 Crores including proposed enhancement other than
Agriculture and Retail Lending. Circles shall collect and report the details of accounts taken over under these
guidelines to CA&M Wing on monthly basis.
 Review process: Next Higher Authority
Branch heads in Scale I/II/III - DM at RO
Branch heads in Scale IV- AGM RO
In the absence of CM/AGM(VLB/ELB/RAH) the Credit Manager/ Senior Manager of VLBs/ELBs/RAHs up to
their delegated powers-Next higher authority at RO
 All compromise proposals permitted by a delegated authority of the Bank including extension of time for
payment of OTS, condonation of delay, release of guarantor/coobligant/release of security are to be
reported to the follow up authority/ next higher authority for the purpose of post facto scrutiny and review.
 Closure of review remarks, if any, shall be completed within next 30 days by the branch. If the remarks of
the reviewing authority are not closed within stipulated time frame as mentioned above, the same shall be
reported to Circle in respect of sanction below Circle Head CAC.
 RM&CRM Section, CO shall submit SRR certificate in respect of loan accounts sanctioned below Circle Head
CAC/GM-CO-CAC and reviewed by appropriate authority, on quarterly basis within 10 days from the end of
succeeding month.
 RO/CO shall generate BI Report No: 251003/331010 Product Wise Accounts Opened for cross verification of
the Loans sanctioned and reported by the Branches in the monthly Returns.
 Reviewing authorities, while reviewing, should invariably ensure that branch has registered the securities
both Prime & Collateral with CERSAI and also created our charge with ROC. All our branches/offices shall
ensure that there shall not be any dilution in the review of sanctions made at the branches. The Reviewing
Authorities at RO/CO, shall exercise required control to ensure quality credit portfolio.
 RM&CRM Section, Circle Office shall monitor the progress of review of Branch sanctions by the review
authorities on a regular basis to ensure timely review of sanctions and quality Credit growth. Timely review
and ensuring that all sanctions are reported by the branches for review is essential to maintain better Asset
Quality.

 PRE RELEASE AUDIT – In order to strengthen pre-disbursement monitoring of compliance to sanction terms
and conditions, obtention of stipulated collateral securities ensuring perfection of securities before
disbursement etc., Pre-release Audit System has been introduced.
Credit exposure of Rs. 3 crore and above (FB+NFB/Clean Limits) to new as well as existing borrowers
excluding Retail Lending Loans.
Retail Lending facilities of Rs.5 crore and above which are backed by mortgage.
All renewals with enhancement, Ad-hoc credit limits/Additional credit facilities sanctioned for a specified
period and for which documentation is obtained in case of parties who are enjoying limits of above Rs.3
crore and who are otherwise subjected to pre-release audit. Also in borrowal accounts where regular limits
and the ad-hoc limits put together crosses Rs.3 crore.
Consortium accounts where disbursement is to be made based on individual documentation.
Restructured accounts other than under MSME OTR Scheme.

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 Where value of property is Rs.5 Cr and above certified copy of latest sale deed should accompany two
LSRs.
 Exclusions: VSL/OD facility against deposits and other approved securities, staff loans, renewal of existing
limits without any enhancement and without modifications in pre-disbursement conditions related to
security and documentation, temporary over limits , borrowal accounts which are under Syndicated loan
arrangements, where the Lenders’ agent/Facility agent are holding the role and responsibility for ensuring
Pre execution/Pre disbursement compliances, and where LLCs appointed certify the enforceability of
documents and legal compliances. Consortium/JLA accounts where joint documentation is executed,
restructured accounts under MSME OTR scheme, retail loans where pre disbursement review of loan
sanctions and approval of loan documents for Retail Loans under LAPS for RAH sanctions.
 However, if mortgage is involved and exposure (FB+NFB) is Rs.5 Cr and above, Pre-release audit to be
conducted and enforceability certificate as per guidelines to be obtained from a panel advocate other than
the Advocate who had given the LSR.
 Coverage and Procedural guidelines for Pre-Release Audit: Enforceability Certificate: To be obtained from
Panel Advocate (other than who had given LSR) Branches before disbursement have to obtain all sets of
relevant mortgage documents/Title deeds (as listed in LSR), mortgage/EMT documents/Registered as
applicable to sanction. On execution of the same, documents to be got approved from the panel advocate
(other than the advocate who had given LSR) and shall submit ‘Enforceability Certificate’.
The Panel Advocate shall verify and confirm that the Advocate who has given LSR has furnished certified copy
of latest sale deed from the Sub Registrar Office, all documents listed in LSR, LSR checklist are obtained and
valid mortgage has been created in favour of bank verify it with the records of office of the Sub-
Registrar/Registrar of Assurance or other appropriate authorities for correctness of records by visiting the
said office personally. Review the legal opinion as to investigation of title and the legal scrutiny report given
by the panel advocate, search reports for creation of charge on the security, Encumbrance Certificate,
documents supporting creation of charge, tax paid receipts etc. wherever applicable. Certify for genuineness
of documents obtained for creation of mortgage. Admissibility of mortgage of agricultural property for non-
agricultural purpose. Any other letters/Permission for mortgage the immovable properties.
 Remuneration with minimum of Rs.1000/- per mortgage and maximum of Rs.10000/- plus applicable GST
for each borrowal account to be absorbed in General Charges.
 Credit Review & Monitoring Section at Circles shall identify an officer in Scale IV and above having aptitude
in credit related functions from the Circle Office and/or branches under their jurisdiction, nearest to the
disbursing branch
 Branches/LCBs/Circle shall coordinate with the identified authority and complete the Pre-Release Audit
within 48 hours from obtention of documentation.
 The observations/remarks made during the Pre-Release Audit shall be attended for rectification/compliance
immediately. Branches/LCBs shall confirm compliance to Pre-Release Audit observations before
disbursement and submit certificate in NF482. Wherever non-compliance is observed, RM&CRM Section at
Circle Office shall place a report to Head of Circle for review and also follow up for compliance.
 General Guidelines: Sanction memorandum/sanction communication conveyed to the borrowers shall
invariably stipulate a clause that disbursement of sanctioned limit is subject to completion of pre-release
audit. Branches/Circles shall coordinate with the identified official/Advocate and complete the Pre-Release
Audit within 48 hours from obtention of documentation and ensure that disbursement is not pending for
want of completion of Pre-Release Audit. In case of branches overseas, pre-release audit shall be conducted
by an official other than the official who is dealing with the proposal/ sanctioning authority in the branch.
MD & CEO (ED overseeing IO &CCR Wing in the absence of MD&CEO) of the Bank may order pre-release
audit by deputing an official from India, wherever it is felt necessary.
 No authority is empowered to permit waiver of Pre Release Audit.

 POST DISBURSEMENT LEGAL AUDIT- Legal Audit of title deeds and other documents, in respect of large
value loan accounts with credit exposure of Rs.5 crores and above, as part of regular audit exercise (RBIA).
 Subsequent Legal Audits shall be conducted after a gap of 3 years from the date of first Pre disbursement
Legal Audit.LSR is to be obtained from our panel Advocate along with search report. Branches to ensure that
the Advocate who provides LSR has also furnished certified copy of latest sale deed obtained from Sub
Registrar Office, which confer the right to the mortgagor to create a valid mortgage along with LSR.
Wherever 2 LSRs are to be obtained (Where value of property is Rs.5 Cr and above) certified copy of latest
sale deed should accompany both LSRs.

 CREDIT AUDIT - Credit audit examines compliance to post sanction processes/procedures laid down by the
bank from time to time. The system is aimed at improving quality of credit portfolio and includes review of
post sanction process and compliance status of large loans, pick up early warning signals and suggest
remedial measures.
 Objective: Improvement in the quality of credit portfolio, review on compliance status of large loans by the
borrower, review of compliance of post sanction terms & conditions by the branch, detect early warning
signals and suggest remedial measures; recommend corrective action to improve credit quality and to carry
out independent review of risk factors in the borrowal account, retention of security including registration
of charges with ROC/CERSAI.

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 Coverage: Review of post sanction processes/procedures of all fresh sanctions, enhancements/ additional
exposures exceeding cut off limit of Rs 3.00 crores and above.
 The audit process: The Credit Audit is conducted by External Auditors/Internal Auditors.
 Verify compliance of Bank's lay down policies, procedures and with respect of post sanction compliance of
terms & conditions of sanction. Examine perfection of documentation/security & verify availability of proper
charge of stipulated securities in Bank's favour. Conduct risk assessment. Examine the conduct of account
and follow up/monitoring conducted. Receipt of feedback statements and meaningful review of the
same.The Auditor to verify actual performance with the assumptions made for the sanction of limits at the
time of appraisal and assessment and furnish observations. Performance vis-a-vis project implementation
and progress. Verify creation of asset and end use verification. Verify action taken in respect of serious
irregularities at Branch/Circle. Detect warning signals if any and suggest remedial measures thereof.
 Audit - Less than 5 Cr- Internal (Scale 3, 4 and 5) or External Auditor. Above 5 Cr-Empanelled External
Auditors Max fee Rs 6000/- +OPE .
 Closure of credit audit report remarks is 3 months.

 CREDIT MONITORING FORMAT & CMF cum MTR – To focus on review of the conduct of the account,
compliance to terms and conditions, irregularities observed and steps taken/to be taken to rectify to protect
the interest of the bank.
 The CMF and CMF cum MTR review shall essentially focus on the following: Verification of adherence to loan
policies and procedure of the bank and applicable laws/Regulations. Analysis of performance of the borrowal
unit. Identifying promptly any signs of weaknesses developing in the account and suggest appropriate and
timely corrective action. Use of the credit facility and conduct of account by the borrower. Compliance with
the terms & conditions stipulated in the sanction. Overall credit quality changes. Issue
guidelines/instructions wherever necessary to improve the asset quality. To detect early warning signals and
to take remedial measures in time.
 Applicable for all borrowers having exposure (FB+NFB Limits) of Rs.3 Cr and above in case of Low, Normal
and Moderate Risk Rated Accounts. In case of High Risk accounts borrowers having exposure (FB+NFB Limits)
of above Rs.1 Cr.
 CMF Periodicity : Low/Normal/Moderate Risk : Quarterly
 High Risk (1 Cr and above) : Monthly ; Moderate Risk - 200 crores : Monthly
 CMF AND MTR: Half Yearly due 6 Months from Sanction.
 CMF cum MTR submission not applicable to standalone TL/DPG/Co-acceptance under Circle Head CAC &
above power accounts which are covered by Annual Term Loan Review. Where annual review of Term Loan
is undertaken, quarterly CMF shall not be applicable during that particular quarter and wherever annual
review of term loan is undertaken, CMF cum MTR is not applicable. In respect of Standalone Term Loan
sanctioned below Circle Head CAC, existing CMF and CMF cum MTR will continue to be applicable.
 RO shall follow up with branches for submission of CMF cum MTR Review programme for each half year end
Mar/Sept. RO shall ensure that Branches are submitting review programme positively by the 15th
March/September for the subsequent Half Year. RO shall consolidate review programme received from the
branches and submit the consolidated statement of review programme for CMF cum MTR to RM&CRM
Section, CO positively by 20th March/September for the subsequent Half year.
 RM&CRM Section CO shall submit the CMF cum MTR through LCM module within 7 days from the end of
month in which the due date falls for review as per program already drawn along with Circle
views/comments to CA&M Wing, HO. In respect of SMA-1 & SMA-2 accounts with exposure of Rs.25.00 Cr
and above under HO powers shall be submitted to SAM Wing HO.

 STOCK AND RECEIVABLE AUDIT –

 All borrowal accounts enjoying Fund Based & Non Fund Based (NFB) working capital limits of Rs.1 Crore &
above for Moderate, High and Unrated accounts and Rs.5 Crore and above for Low Risk and Normal risk
accounts from our Bank/Banking system. In respect of NPA accounts, before recommending for entrustment
of stock audit/valuation of assets, Branch/Offices shall ensure availability of the stock/charged assets, the
need for valuation etc. and Branch shall seek instruction from the Circle Office regarding the need for
conducting valuation.

RISK CATEGORY (CIRM Rating) EXPOSURE PERIODICITY

CNR-I to CNR- V (Mini Risk and Rs. 5 Crore and above Once in a Year
Low Risk) & CNR-VI (Normal
Risk)
CNR-VII to CNR-XI (Moderate & Rs. 1 Crore and above Once in a Year
High Risk) and CNR-D (Default)
Rs. 1 Crore and above Accounts classified as Standard
Assets -Once in a year
Substandard and Doubtful assets -
Un Rated (Internally) Once in 2 Years

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 Canara Institute of Bank Management, Manipal

Rs.5 Crore and above Classified as Doubtful – Stock

Audit has to be got done once in a
year

 Takeover of Accounts - Stock audit is a Pre release condition - Irrespective of limit & CRR.
 Periodicity of conducting Stock Audit in NPA Accounts is 3 Months if not upgraded-6 months from NPA.
 All Retail Loans up to Rs.5.00 crore sanctioned by Circle Head CAC and above authorities are exempted from
the applicability of Annual Review of Term Loan.
 If the current valuation report is not older than 6 months, then fresh valuation need not be insisted, where
the rating of the accounts are downgraded to moderate or high risk as the case may be. However, if the
account is downgraded by two notches, then stock audit is to be carried out as per extant guidelines, i.e.,
within a period of 3 months of such down gradation.
 In respect of consortium advances/ JLA, where we are the leader, the stock audit shall be conducted as per
extant bank guidelines and in cases where we are not the leader, we may take up the matter with the Lead
Bank for getting the stock audit of the borrowal account.
 Branches shall identify the eligible accounts for stock audit of the current financial year and submit a review
programme in the first week of June every year. The details of external valuers allotted by RM &CRM Section
at CO shall be obtained and followed with the valuers and borrowers for conducting the audit and
completing the same and submission of the stock audit report to CO within the timeline.Branch to attend to
the rectification of any deficiency pointed out during the audit.The pending issues, adverse remarks
communicated by CO on analysing the audit report at their end, shall be attended to and
compliance/rectification shall be informed to CO within 2 weeks of receipt of such communication.
 Credit Sanctioning Sections at ROs to incorporate the details of Stock Audit observations and status of its
compliance/closure of the Stock Audit report in their office Notes for sanctions/Renewals. RM&CRM Section
at CO shall collect/consolidate the data on accounts eligible for the stock audit for the current financial year,
in the second fortnight of June. In the first fortnight of July, CO shall complete the allocation of panel valuers
for conducting the stock audit.
 The stock auditors shall undertake the work early and complete the work before December of the financial
year. The report should be closed before January of relevant financial year along with compliance of
observations, if any.

 AGENCIES FOR SPECIALISED MONITORING (ASM) – our bank has put in place a mechanism to effectively
monitor the post sanction performance of accounts with aggregate exposure of Rs.250.00 crores and above
periodically in order to detect the financial stress at an early stage. “Tie up with Agencies for Specialized
Monitoring (ASM) for clean and effective post sanction follow up, on common engagement basis in case of
Consortium lending, for (i) aspects requiring domain expertise (e.g. inspection and Stock Audit) and (ii) Large
Credit Exposures and exposures of a specialized nature.”
 Guidelines are applicable to all Standard, Standard Restructured and NPA Restructured accounts. These
guidelines are applicable to Projects under implementation also.
 The system of post sanction monitoring shall be undertaken in all eligible accounts on a quarterly basis after
the closure of each quarter. In accounts under Stress or under Restructuring, monthly monitoring may be
stipulated, if deemed necessary.The ASM will complete the assignment within a period of 1-3 weeks from
the end of the quarter.
 Professional fees: Rs 5 exposure upto Rs 500 Cr
Rs 8 lakh per annum exposure above Rs 500 Cr
i) Upto 10% increase on the prescribed fees : CGM/GM-HO-CAC ii) Upto 20% increase on the prescribed fees
: ED-CAC iii) Above 20% increase in the prescribed fee : CAC of the Board
 The empanelment shall be valid for a period of 3 years subject to renewal at the end of 3 years.
 Same ASM shall not be entrusted with more than 5 accounts at a time.
 Stock Audit shall be exempted for the accounts covered under monitoring by Agencies for Specialised
Monitoring (ASM).
 Waivers : i) Consortium / any other Joint Lending Mechanism, where joint decision is taken to waive the
applicability of ASM- permitted by the Sanctioning Authority not below ED CAC. In case of MC power
accounts, CAC of the Board may permit waiver. ii) Exposure to State/Central Govt. accounts, Govt.
Undertakings, PSUs and exposure on accounts with State/Central Government Guarantee available shall be
exempted. iii) In case of other accounts (Sole/MBA)- ED-CAC may permit waiver. In case of CAC of the Board
power & MC power accounts, waiver may be permitted by CAC of the Board.

 QUICK MORTALITY ACCOUNTS- All Loan Accounts of borrowers where the aggregate liability is Rs.15.00
lakhs and above, becoming NPAs within a period of 12 months : BO REPORT BO280143
 BO Report: 280035 – (Part A) -. Circles are requested to generate the above BO report and additional details
are to be obtained and incorporated in the relevant columns and submit to HO within the stipulated time.

 Credit Monitoring Officers (CMO)- Branches shall nominate Credit Monitoring Officer (CMO) for the purpose
of monitoring accounts with credit exposure of Rs.50.00 lakh and above and other purposes .
 Duties of CMOs include preparation of CMF/CMFcumMTR/FCMF, watching the operations in the accounts,
scrutinize the OCC stock statements, book debts statements for verifying calculation of drawing power,

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preparation of Half Yearly CMFcumMTR Review programme, Submission of CMF/CMFcumMTR to concerned

reviewing authority, carry out Risk Rating under manual model, preparation of SMA statement, assist the
branch in charge in follow up of SMA accounts , follow up receipt of stock audit/Credit Audit reports and
attend to observations thereof for rectification, reporting of accounts under RFA, Data updation in LCM
Module etc.
 Regional offices (ROs) shall mandatorily conduct meet of CMO's every calendar quarter to take stock and
review the functioning of CMO's vis-à-vis their roles and responsibilities and to discuss the effective
implementation of the system. Minutes of meeting shall have forwarded to RM&CRM Section CO. Circle
should consolidate the minutes of all Regional Offices (ROs) for every quarter and submit the consolidated
statement to CAM Wing HO along with quarterly CMO Certificate.
 CMOs shall submit a monthly report as on the last date of every month. The reports shall be properly
compiled, duly filling up all the columns and furnishing all the required details. The report shall be submitted
to RM&CRM Section RO/CO within 7 days of the due date. If there are specific observations in respect of
accounts with total exposure of more than Rs.10 crores, a copy of the report shall be endorsed to Credit
Review & Monitoring Section CA&M Wing HO.

SMA Sub-categories Amount wholly or For Cash Credit

partly overdue
between
SMA 0 1-30 DAYS NA
SMA 1 31-60 DAYS 31-60 DAYS
SMA 2 61-90 DAYS 61-90 DAYS

Sub Category Basis for classification

SMA A All borrowers with aggregate Exposure of less than Rs.5 Lacs
SMA B All borrowers with aggregate Exposure of Rs.5 Lacs to less than Rs. 25 Lacs
SMA C All borrowers with aggregate Exposure of Rs.25 Lacs to less than Rs. 100 Lacs
SMA D All borrowers with aggregate Exposure of Rs.100 Lacs to less than Rs. 500
Lacs
SMA E All borrowers with aggregate Exposure of Rs.500 Lacs & above
SMA NF All borrowers with delinquency due to non-financial reasons
SMA AG Crop loans and all agriculture accounts which are not covered above
 Levels of monitoring /Review of SMA accounts
AUTHORITY FOLLOW UP
BRANCH HEAD All SMA accounts
Other Executive in RO All SMA account of less than Rs. 25lacs
RO HEAD All SMA account of Rs. 25lacs and above
CO HEAD All SMA account of Rs. 100 lacs and above
HO GM/CGMs Credit All SMA account of Rs. 500 lacs and above
Wings/CAM WING
 BO report 280216 provides the list of term loans (accounts other than revolving credit) where the
installment is falling due in the next 7 days.
 BO Report 280101 List of accounts where stock statement updation is due.
 M/s.Conneqt Business Solutions Ltd as the Call centre service provider who will be taking care of email/SMS,
IVR calling, Auto Dialler calling- range of liability up to Rs.1 Crore for MSME & Retail.
 IVR blast calling is done in respect of all borrowers other than agriculture loans having exposure upto Rs. 1
cr and overdues above Rs. 1000.
 Manual calling is done to all borrowers other than agriculture loans having exposure more than Rs. 1 cr but
having overdues less than Rs 5000.
 All accounts under retail loans and MSME loans (up to Rs. 1 Crore) with over dues are ported in the IT
solution and the call centre executives will follow up with respective customers and update the status in the
Collection Management Package.
 EARLY WARNING SIGNAL : RED FLAG ACCOUNT ( threshold limit is exposure of Rs. 50 CR)- A Red Flagged
Accounts (RFA) is one where suspicion of fraudulent activity is thrown up by the presence of one or more
Early Warning Signals (EWS). These signals in a loan account should immediately put the Bank on alert
regarding a weakness or wrongdoing, which may ultimately turn out to be fraudulent. A bank cannot afford
to ignore such EWS but must instead use them as a trigger to launch a detailed investigation into RFA.
 A report on the RFA accounts to be put up to ‘Special Committee of the Board for Monitoring and Following
up Cases of Frauds involving amounts of Rs. 1.00 Crore & above’ (SCF) providing, inter alia, a synopsis of the
remedial action taken together with their current status.

 Large Credit Monitoring Package – LCM is a SAS based web portal that would enable the branches and
admin unit officials to monitor and review the large borrowal accounts on a periodical basis and take
proactive measures.Applicable for Sanctioned Limit (both Fund based & Non Fund based) of Rs.1 Crore and
above. Data updation is required to be done on monthly basis. Uploading wherever applicable should be
done in PDF format only. Pillar wise submission is applicable. There is Maker & Checker concept in Branch /
RO/ SME SULABH/ CO/ HO Levels. Monthly data uploading will be done at HO level. Data will be extracted

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from CBS and no data will flow from LCM into CBS. The basic details of loan accounts viz., Customer ID,
Name, Branch, Total exposure, etc. would be extracted and loaded into this application.
 Pillar- feedback statement: Sub-Pillars: Monthly Statement of Selected Operation Data (MSOD)/Stock
Statement (SS)/ Book Debt(BD),Quarterly Operating System(QOS)/Half Yearly Operating System
(HOS),Audited Balance Sheet (ABS),Project Implementation Progress Report (PIPR)/ Lenders Independent
Engineer (LIE).
 PILLAR -Audit: Sub pillars : Stock Audit (SAR) ,Credit Audit (CAR) ,Pre Release Audit (PRA).
 PILLAR –Posts anction visits:Sub pillars: Unit Visits,Stock Inspection.
 PILLAR-Consortium/MBA: Sub pillar : Consortium Minutes/JLM Minutes, Exchange of Information
 PILLAR-CMF/CMF CUM MTR: Sub pillars : CMF cum Mid Term Review(CMF cum MTR), Credit Monitoring
Format(CMF)
 PILLAR-others: Sub pillar : Miscellaneous
 PILLAR-GST returns-New pillar Sub pillars: GSTR 1, GSTR 2A,GSTR 3B
 PILLAR-Agencies for specialized monitoring(ASM)-New pillar Sub pillars: ASM The indicators would be simple
questionnaires, which will have a response of Y/ N /NA.
 At branch level: Enter the details against each indicator.Upload the supportive documents. Authorize the
details entered. Respond to the queries raised by RO/SME SULABH/CO/HO. Forward the entries to RO/SME
SULABH/CO/HO. Upload the correct & full documents against the applicable indicator for quality uploading.

 Project Implementation Progress Report (PIPR) Project Implementation Progress Report (PIPR) where the
credit facility relating to acquisition of capital assets is Rs.50 lacs and above shall be obtained on a quarterly
basis. The PIPR during the implementation period duly certified by Chartered Accountant/Chartered
Engineer shall be obtained and reviewed.The PIPR, among others, indicates the Long term sources raised up
to the end of the reporting quarter and the amount proposed to be raised during the ensuing quarter.
 Applicable for Term loans in progress to ascertain the progress /implementation of project and promoter’s
contribution vis-a-vis the targets.It shall be obtained and submitted at quarterly intervals.
 Lender’s Independent Engineer’s Report (LIE Report) may be accepted in case of projects where LIEs are
appointed. Sanctioning authority may stipulate obtention of PIPR or LIE Report, as the case may be,
depending upon the suitability for monitoring of the projects financed.
 Lenders Independent Engineer (LIE)-provide professional engineering consultancy services in project finance.
They are engaged in infrastructure projects as well as non-infrastructure projects for evaluation of the
projects. The monitoring of the project to ensure timely completion and also proper utilisation of the funds
are carried out by the LIEs.
 The services provided by the LIEs should broadly include: i. Pre financial closure review of the projects
conceptual design and basic engineering, construction and operation plans. ii. Assessment of supply chain iii.
Assessment of general infrastructure requirement for implementation. Iv. Assessment of redundancy
concept. v.Review of project agreements (PPA,fuel supply agreement, transportation agreement etc.).
vi.Review of permits and licenses. vii. Assessment of EPC/various packages and O&M contracts. Viii.Review
of financial model and security package mechanism. ix. Implementation phase monitoring of construction
progress and monitoring capital cost and disbursement and adherence to time schedule and budget. x.
Assessment of variation orders. xi. Regular reporting during construction upto commercial operation. xii.
Quality surveillance at workshops and project site. xiii. Assessment of plant commissioning.
xiv. Assessment of testing performances. xv.Plant operation phase,O&M systems and preparedness.
xvi.Regular reporting of operations (performance, statutory compliance, safety) over the term of debt.
xvii.Monitoring and reporting of budgets, revenues, O&M costs etc. xviii.Assessment of proposed plant
modifications if any. xviv. The independent Engineer shall have requisite experience/ expertise of similar
assignments.The independent engineer will be responsible to perform the said obligations throughout the
assignment period. xvv.Review of environmental clearances, compliance to energy efficiency methods, green
Initiative Norms.

 QOS / HOS Applicable for Industrial borrowers, merchant exporters, traders etc., enjoying Working Capital
limits of Rs.5 crores and above from the banking system.
 Monitoring of High Risk Accounts (Rs.10 Crore and above)
 Monitoring of borrowal accounts with total exposure of Rs.200 crore and above.
 Review of Bank Guarantee Progress Report all outstanding performance, advance payment and other
guarantee exceeding Rs.5 lacs, shall be done on an ongoing basis at half yearly intervals after completion of
6 months from the date of issue of the guarantees.
279/22 Cash and Banker’s balance management policy For FY 2022-23
 The purpose of this policy is to ensure efficient utilization of the cash and banker’s balance.
 Cash: Cash refers to the balance held at branches and offices of the Bank in India in Indian Currencies
and Coins excluding Currency Chests, ATM and cash in custody under trust agreement.
 Banker’s Balance: Banker’s balance includes balance held in Current Account with any bank in India in
Indian Currency for routine transaction like clearing etc. The Balance held with RBI and balance
maintained for investment purposes shall be outside the purview of this Policy.
 Bulk Deposits: Single Rupee Term Deposits of Rs.2.00 crore and above.
 Standard Cash Limit for the Bank as a whole 0.25% to 0.35% of the aggregate domestic deposits.
 Bankers balance shall be maintained- 10% on the upper side for clearing purpose and cash remittance.

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 cash receipts in the denominations of Rs. 100 and above are not put into circulation.
 RO CO Cash Position or BD 360 New Business Dash Board.

280/22 Master Circular on Conduct of Government Business by Agency Banks Payment of Agency Commission
 Revised and Updated Master Circular on Conduct of Government Business by Agency Banks-Payment of
Agency Commission, which consolidates the important instructions issued by Reserve Bank of India till
31st March, 2022.
 Transactions eligible for agency commission paid by RBI:
(a) Revenue receipts and payments on behalf of the Central/State Governments i.e stamp duty through
physical mode or e-mode (challan based),
(b) Pension payments in respect of Central / State Governments and
(c) Any other item of work specifically advised by Reserve Bank as eligible for agency commission i.e
Small saving scheme.
 Reporting of transactions by agency banks to RBI: all days except the Global holidays, which are January
26, August 15, October 2, all non-working Saturdays, all Sundays and any other day declared holiday by
RBI.
 Rates for agency commission
Sr. No. Type of Transaction Revised Rate

1.A Receipts - Physical mode Rs 40 per txn

1.B Receipts – e mode Rs 9 per txn
2. Pension payments Rs75 per txn
3. Payment other then pension Rs 6.5 paisa/ Rs 100
 Penal interest for wrong claims : Bank Rate + 2%
281/22 Regulation 20(2) of Canara Bank Officer Employees’ (Conduct) Regulations, 1976 – Return of movable/
immovable and valuable property as at 31st March 2022
282/22 Inspection policy of the bank 2022-23
Scope of the Risk Based Internal Audit :-
 Evaluate the adequacy, existence and degree of adherence to Bank’s Policies, procedures and sound
business practices and makes recommendations for change as appropriate.
 Evaluating and apprising the adequacy and application of accounting, financial, data processing,
administrative and operating controls;
 Ascertaining that Bank’s assets are accounted for and safe guarded.
 Ascertaining the reliability and timeliness of Management Information
 Performing Special Reviews for the Audit Committee and Management.
 Identification of loss making Assets, Revenue Leakages and Apprising the Controllers.
 In the light of Risk Based Supervision (RBS) as a part of the ‘Operational Risk Management’, the
Inspection System shall aid in identifying and assessing Risk Areas while reporting the findings.
 Random transaction testing to review and report exceptional transactions
 Internal audit function must have sufficient authority, stature, independence and resources within
the bank, thereby enabling internal auditors to carry out their assignments with objectivity.
authority to communicate with any staff member and have access to all records or files that are
necessary to carry out the entrusted responsibilities.
 Authority to modify the policy : Normally, any modification to the existing policy shall be effected
during the course of annual revision of the policy. However, any modifications / deviations on any
emergent situation will be effected with the approval of Executive Director overseeing Inspection
Wing and the same shall be placed before the Board during next Policy Revision.
 Inspection Function shall be overseen by the Board of Directors / Audit Committee of the Board and
Bank would ensure that the (1) the Inspection Process is understood and respected at all levels
within the Bank and (2) findings / observations of inspection / audit are given adequate seriousness
and resulting in appropriate management action plans.
 Zonal Inspectorate (12) 1. Bengaluru 2. Bhopal 3. Chandigarh 4. Chennai 5. Delhi 6. Ernakulam 7.
Hyderabad 8. Kolkata 9. Lucknow 10. Madurai 11. Manipal 12. Mumbai
 The Inspection Department should be independent from internal control process in order to avoid
any conflict of interest and should not be assigned the responsibility of performing other accounting
or operational functions.
 As Inspecting Officers are largely drawn from the operations, they should be independent to
demonstrate objectivity while performing their audit work. The General Manager, Inspection and
other Executives / Staff of Inspection Wing shall not involve themselves in: (i) Performing any
operational duties for the organization; (ii) Initiating or approving transactions external to the
Inspection Department; (iii) Making Key Business decision.

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 The head Internal Audit shall be a Senior Executive of the Bank, preferably in the rank of a General
Manager or an equivalent position.
 Minimum Qualification: Graduation / Post Graduation from a recognised University / Institution.
 Experience: The Head Internal Audit shall have an overall experience of at least 20 years in the
banking or financial services, out of which at least 10 years shall be the operations, preferably in
Credit.
 For operational convenience and control, the Head-Internal Audit shall be designated for a minimum
period of 3 years.
 The Head Internal Audit may be designated by the MD & CEO. The same shall be informed to the
Board and Audit Committee of the Board. Transfer or removal of Head-Internal Audit before
completion of the tenure only in exceptional Circumstances shall be done with the prior approval of
the Board / ACB.
 No vigilance case or adverse observation from RBI, shall be pending against the candidate identified
for appointment as the Head-Internal Audit. The appointment / change of the Head Internal Audit
shall be informed to Board by H R Wing and to the Audit Committee of the Board by Inspection
Wing.
 While inducting officers into the inspection setup the Inspection Wing has to ensure that such
officer/s are having clean record i.e., they should not have committed any serious irregularities in
their earlier placements and not imposed with major punishment during the last 5 years and their
names should not be in Officers of Doubtful Integrity (ODI) / Agreed list or against whom no charge
sheet is pending / contemplated.
 The induction of Officers to Inspection System including IS Audit shall be restricted to Scale II and
above with consistent Very good / Outstanding Rating in the past 3 appraisals and a minimum of
one year experience as Branch-in-charge.
 The ZI heads shall directly report to Inspection Wing, HO., with regard to all inspection matters.
Further, they shall also hold periodical Meetings at-least twice a year (including annual conference)
with Inspecting Officers placed in various units to have a feel and adequacy of flow of instructions
and provide a feedback to the Inspection Wing.
 The role of Internal Auditor is essentially to verify that(a) the books and records are being
maintained in accordance with the guidelines, systems and procedures prescribed by the
management, reflecting a correct record of the assets and liabilities,(b) the advances shown in the
books have been authorized by the competent authority and that they are realizable and
enforceable by law, (c) that the assets really exist, (d) that all income accruing has been brought into
account, (e) that all expenditures are appropriately charged and where necessary, has been duly
authorized, and (f) generally that all instructions issued by the management are being duly complied
with.
 Before completion / conclusion of RBIA at Branches / Units, In-charge of auditee unit shall give
feedback and review on various parameters regarding Inspecting Officials. The following parameters
shall be covered in the feedback cum review sheet:
 Courteous nature
 Co-operation with Branch staff
 Friendly nature
 Knowledge level
 Making availability of jotting sheets on daily basis
 Authorization of replies in package
 The Audit plan of next day is discussed in advance enabling the branch to provide records
 Encouraging branch in spot rectification
 Punctuality
 Conducting staff meeting on first and last day of audit Considering that all field IOs are to be rated
under feedback cum Review by auditee units, weightage of 5 marks shall be given in Annual
Performance Appraisal Rating.Further, the feedback of the inspecting official on the above traits
from the in-charge of auditee unit shall be recorded through specific call centre facility.
 Pre-Audit Exercise of Branches / Units: For better compliance to guidelines and avoiding more
control risk perceptions, all auditee units’ branches shall mandatorily undergo the pre-audit Exercise
of Branches. In this connection, the ZIs will inform the details of branches /units where the RBIA may
fall due in the next quarter well in advance. Accordingly , all the ROs shall ensure that branches /
Units are undergoing pre-audit exercise effectively i.e.ensuring:-
 1. availability of loan documents duly filled in and executed with all requisite annexures,
 2. Compliance to the observations made by the reviewing authority
 3. Availability of insurance for the securities
 4. Availability of AOD/ LOR , etc. The crux behind pre-audit exercises is that branches shall ensure
compliances in all areas and avoid observations that would increase the control risk perceptions.
The overseeing executive in ROs concerned shall ensure that the quarterly branch visits are
conducted effectively and all the branches / units undergo effective pre-audit exercise and produce
a certificate through Circle office concerned in this regard. Accordingly ZI concerned may decide the
date of commencement of RBIA as per the audits already planned.

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 RBIA: Sampling of the audit areas is applicable only in cases where 100% verification is not
mandatory during the RBIA of the branches. In such cases verification level shall be 25% to 40%
depending on the size of the portfolio. ZI to ensure that, the result of sampling is reflected in the
Risk profile of the audit location. In respect of Branches/ service units, the transaction testing would
continue to remain as essential aspect of RBIA.
 Continuous Audit / Concurrent Audit: During Continuous / Concurrent Audit of Branches / Units,
100% verification is mandatory in the below aspects: All loans / advances sanctioned / renewed /
disbursed. All transactions put through GLs and internal office accounts. Verification of mandatory
report generation and review by Branches / Units. Where Sampling is not mandatory for 100%
verification, IOs / ECAs shall verify 25% to 40% depending on the size of the portfolio.
 I.S Compliance Audit: RBIA team shall also carry out IS compliance audit as part of their audit routine
for all branches irrespective of risk rating of the branch.
 There shall be a formal Half Yearly (July and January) structured meeting for collecting feedback for
Annual Audit Plan and Inspection Policy or its midterm review. Inspection Wing shall be the
convenor of such HY meetings. RM Wing shall be a permanent invitee for such meetings and Other
operational wings may be called depending upon the need.
 The comprehensive risk assessment, inter-alia, shall bear the following factors while evaluating the
risks perceived. i) Volume of business and complexity of activities; ii) Substantial variation from the
budgets fixed; iii) Changes in business activities, industry trends and environmental factors; iv)
Significant changes in Management (including officers handling key portfolios). v) Any control
weakness and risk mitigatory steps initiated.
 Details of serious / grave irregularities and other matters including malafides, corrupt practices;
gross in-discipline on the part of the staff and such other serious irregularities affecting the safety
and security of Bank’s assets to be specified from time to time, should be reported in the form of a
Special Report.
 In case of VLB/ ELB / LCB / MCB wherever income leakage detected is Rs.25 lacs and above per
branch per audit, such things are to be reported as Special reports. However, income leakage
detected below Rs.25 lacs in these branches, to be invariably reported under Part B observations.
 For Large / Medium / Small branches, cut off limit for reporting income leakage under Special reports
shall be Rs.10 lacs. Income leakage detected below this cut off limit to be reported as Part B
observations.
 In tune with the Reserve Bank of India guidelines, the gist of the Special Reports covering the areas
of irregularities, staff lapses, financial implications etc., are reported to the Chief Vigilance Officer,
HO, for taking appropriate action / further investigation.
 Other serious/major deficiencies / observations which require urgent corrective action shall be
reported in Part “B” of the RBIA Report and Concurrent / Continuous Audit report, as may be
communicated from time to time.
 All other observations shall be grouped and reported under Part “A” of the Report.
 “Quality Audit” shall be conducted during the course of RBIA. Inspecting Officers shall verify
minimum 10% of the total number of audit observations (in case of Branches/Units both Part A & B
category) from the previous audit report/s.
 For concurrent / continuous audit branches / units, “Quality Audit” shall be conducted at Quarterly
intervals. Any deficiencies in reporting compliance to be brought to the notice of controlling office
by incorporating such observations either in Part B of the report or by way of a Special Report as the
case may be. The verification of compliance reported by branches in respect of PART B observations
shall be done 100%.
 Whenever wrong reporting/ compliance by the branches to the inspection observations are
observed, circles to examine the matter from staff angle treating the same as a misconduct and
accountability to be fixed as per staff accountability policy of the Bank.
 RBIA reports containing wrong compliances to previous inspection remarks shall be permitted to be
closed only after: a) Ensuring rectification of deficiencies and b) Initiation of action against the erring
officials.
 Branches / units are awarded a composite risk rating based on the level of risk / scores assessed
under Business Risk and Control Risk with weightage of 20:80.
 Guidelines issued by the Ministry of Finance:
Business Risk: 20% (growth risk) Control Risk: 80%

Level of Risk Scores assessed under composite risk rating (Business risk 20% and
control risk 80%)
Low < 35.00
Modetare 35.00 & above to < 55.00
High 55.00 & above

Rating under Parameters Periodicity

Inherent Risk
Low If all parameters are Low 18 months

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Moderate If Parameters are Low & moderate 12 months

or if all parameters are Moderate
High If any one of the parameters is High 6 months

 Categorizing the continuous Moderate Branches as Special Moderate Branches: The Branches which
are risk rated as Moderate continuously for 3 times in successive RBIAs, shall be treated as “Special
Moderate”, immediately upon awarding the risk rating for the 3rd time as Moderate. Such Branches
shall be given special focus viz., Special KRA shall be assigned to RO executives for upgradation of
such Branches, a special review shall be undertaken during ZACE meetings and before
commencement of next RBIA. The serious irregularities / observations, if any, pointed out during
Pre-Audit Exercise, outcome of observations made in the quarterly branch visits and efforts taken by
the RO In-charge for improving the internal control of the Branches concerned shall be discussed
during ZACE Meeting.
 The branches / units under concurrent audit would be risk rated on calendar quarter.
 For quarterly rating of concurrent audit there will not be any system for appeal by branch / Circle as
they are required to put efforts to improve their rating in the next quarter.
 The ZIs shall review the Risk Profiling cum Risk Rating (RPRR) charts for all types of branches (Small /
Medium / Large / VLB / ELB) and service units and confirm the Risk ratings awarded in the system
thereon within the stipulated time norms of 7 working days from the date of conclusion of RBIA or
from the date of receipt of RPRR charts/ files at ZI whichever is earlier.
 In respect of branches (including ELBs / LCBs headed by Scale V) and all service units with Low &
Moderate risk rating, DGM Zonal Inspectorate to award the risk ratings.
 In respect of LOW RISK rated branches, off-site risk assessment shall be done on annual basis.
 The risk rating (mid-term) of the branch during the offsite risk assessment shall be invariably
furnished in the RBIA report of the branch, duly mentioning the risk rating during the previous RBIA.


Branch/ Office Periodicity

Branches / Circles/ ROs/ units with High Risk 6 months
Branches / Circles / ROs with Rating Moderate Risk & all Service Units 12 months
(other than high risk ) like Accounts Section, Currency chest, RAH, MSME
Sulabh, Central Processing Hubs (CPHs), Clearing Sections, LPC etc.
Branches / COs / ROs with Low Risk 18 months
Currency chest – Risk rated as high by security cell, GA Wing, HO 6 months
Currency Chest - other than high risk rated by security cell 12 months
All wings including Learning & Development Vertical (STC) 12 months
Inspection / Management Audit of Corporate offices of all Domestic 24 months
Subsidiaries
Management audit / Regular Inspection of RRBs 12 months
Zonal Inspectorates 12 months
Newly opened branches including Ultra small branches. 6 months
Verification of related party transactions in Subsidiaries i.e., transactions 12 months
between Canara Bank and the Subsidiaries / Group Units and among
Subsidiaries / Group Units.

 Periodicity of RBIA of LCBs shall be 12 months irrespective of whether composite risk rating of RBIA is
Low, Moderate. risk rated as HIGH 6 months.
 The Circles are to be risk rated on 3 scale risk rating matrix as applicable to branches / units. All risk rating
will be awarded by GM of the Wing. Mid Term Audit of the Circles with Low Risk shall be conducted
within 12 months. Since the periodicity of the RBIA for Circles with Moderate and High Risk rating will be
once in 12 & 6 months respectively, Mid Term Audit will not be conducted for Moderate and High Risk
Rated Circles.
 RBIA of all the existing branches / offices abroad shall be once in 12 months with the exception of Hong
Kong branch. RBIA of Hong Kong branch shall be conducted Half Yearly by internal IOs.
 Quarterly Income Audit: Income Audit shall be conducted along with RBIA/Concurrent/ Continuous Audit
branches. In addition to the above, there shall be an Income Audit at certain select Large / Medium sized
branches and branches where income leakages above a threshold limit has been noticed on quarterly
basis, from 1st July to 30th June, based on threshold limit fixed for income leakages detected during the
previous financial year in various audits.
 KYC Snap Audit: To be Conducted monthly in one branch per Regional Office.
 Thematic Audit: Thematic Audit shall be conducted on identified theme / areas to assess whether the
stated goals for which they were conceptualized have been achieved. The report shall be shared with
the concerned Circle / Wing for necessary action. The concerned wing has to submit closure Report of
Thematic Audit to the Audit Committee of Executives within 4 months.
 Sustenance Audit: Sustenance Audit is conducted by Circles regarding LFAR Compliance and pending
Carry over observations at branches and report shall be submitted to ZIs

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 Audit of Liquidity Risk Management Framework: The Audit shall be conducted at Risk Management Wing,
International Operations Wing and Integrated Treasury Wing on half yearly basis. Time line for closure is
60 days from the date of report.
 Mandays fixed for different category of Branches:

Type of branch Man days fixed for Branches subject to Man days fixed for Branches not
Concurrent Audit subject to Concurrent Audit
SMALL NA 15
MEDIUM NA 25
LARGE 30 40
VLB 35 45
ELB / MCB 35 NA
LCB 30 NA
RAH/SME 45 NA
Sulabh
 Heads of Zonal inspectorates are authorized to permit such additional mandays not exceeding 20%
of the mandays fixed as above.
 If the mandays required is beyond 20% of the mandays fixed as above, the same shall be permitted
by the General Manager of the Inspection Wing.
 However, total duration of RBIA for any branch shall not exceed 90 days for Branches of VLBs / ELBs
/ LCBs / MCBs category and 60 days for other category branches.
283/22 Automation of external credit ratings updation in CBS
Risk Weighted Assets (RWAs) of Corporates/Public Sector Entities (PSEs)/ Non-Banking Financial Companies
(NBFCs) except Core Investment Companies (CICs) are based on External Credit Ratings (ECRs) assigned to them
by ECAIs and divergences in Risk Weighted Assets (RWAs) on account of incorrect capturing of ECRs are seen as
major deviations by RBI. Hence, in order to comply with RBI’s RAR 2020 observation and to obviate manual
intervention, Bank had entered into a contract with M/S CRISIL for automatic updation of ECRs feeds directly in
CBS through APIs. This has gone live with effect from 01/01/22.
284/22 Facilities to Defence Representatives in a departmental enquiry
In the case of an Officer employee acting as Defence Representative for another Officer employee, granting of
TA/HA and Special Leave will be subject to the condition that the Defence Representative comes from an
outstation Branch/Office within the same State. In other words, the Defence Representative if he travels beyond
the State where he is working/ posted, for the purpose of defending another Officer employee, he will not be
entitled to TA/HA and Special Leave.
Now, the competent authority has permitted to extend the facility of Boarding and Lodging also in addition to
TA/HA and Special leave to above category of Defence Representatives i.e., who comes from an outstation
Branch/Office within the same state, as per their eligibility and extant rules with immediate effect i.e., from the
date of issue of the Circular.
285/22 Information System audit policy For FY 2022-23
 The Information System Audit (IS Audit) is a part of Risk Based Internal Audit (RBIA) / Internal audit of
the Bank and therefore should be governed by the overall Inspection Policy of the Bank.
Structure of IS Audit
 IS Audit Section is a part of the Inspection Wing and shall be working under the Board of Directors / Audit
Committee of the Board.
 As a part of overall responsibility, the Audit Committee of the Board ensures compliance of legal and
regulatory requirements.
 The Bank shall have a separate IS Audit function within the internal audit department lead by an IS Audit
Head reporting to the Head of Internal Audit.
 The personnel need to assume overall responsibility and accountability of IS Audit functions.
IS Audit Policy
 The IS Audit policy sets out the direction to evaluate the IT controls adequately and provides guidance
for ensuring Information Security strategies that provide for the confidentiality, integrity, availability,
compliance, reliability, effectiveness and efficiency of the data and other assets.
 IS Audit being the process of collecting and evaluating evidence to determine whether a computer
system safeguards assets, maintains data integrity, achieves organizational goals effectively, and
consumes resources efficiently.
 IS Audit shall focus critical areas like password controls, control of user ids, operating system security,
anti-malware controls, maker-checker controls, segregation of duties, rotation of personnel, physical
security, review of Exception Reports/Audit Trials, BCP Policy and Testing.
 The scope of IS Audit shall include internal control system(s) for the use and protection of full range of IT
resources. These include: a) Data b) System Software c) Application Software d) Technology which shall
include Hardware, Network infrastructure etc. e) Facilities f) People.
 The scope of IS Audit shall cover the effectiveness of controls around GLs / Current accounts for parking
entries, pending adjustments and mapping of codes for computing NDTL related to BSBD accounts.
 The scope of IS Audit shall also cover services that are contracted or outsourced to other parties but
operated for the Bank. IS Audit is mandated to audit the activities of all the outsourced service provided

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to ensure that Banks interests and assets are protected at all times and that all risks arising out of
outsourcing are adequately mitigated or the risks are within acceptable limits.
 An Audit Universe is an outcome of the risk assessment process. It will define audit areas to be covered.
It will include all areas related to IT including resources, processes, applications, data, technology,
networking, data center etc.
 Frequency of system audits shall be as follows:
A-High Criticality-Audit 6 months B- Moderate Criticality-Audit 12 months
C-Low Criticality-Audit 18 months
 "VISA PIN Security Audit” and “Audit of Registration Authority of IDRBT” shall be conducted annually at
the request of functional Wing.
 Following shall be the methods of conducting the IS Audit: 1. Around the computer 2. Through the
computer
 The IS Audit shall use the available ‘Computer Assisted Audit Tools (CAAT)’ for the purpose of audit based
on the guidelines issued by the IS Audit Section, HO, from time to time.
 Information security audit to be undertaken in conjunction with the Information Security policy and
Cyber Security policy of the Bank.
 To address the security issues pertaining to public facing servers at Bank’s data Centre it is suggested
that they are to be subjected to Vulnerability Assessment and Penetration Testing (VAPT) by external
agencies at least twice a year with the intervening period not exceeding six months.
 Social engineering, in the context of information security, refers to psychological manipulation of people
into performing actions or divulging confidential information. A type of confidence trick for the purpose
of information gathering, fraud or system access, it differs from a traditional ‘con’ in that it is often one
of many steps in a more complex fraud scheme.
286/22 ‘Emergency Credit Line Guarantee Scheme (ECLGS)’ of M/s. NCGTC Ltd. – Modification of existing guidelines,
in line with the updated ECLGS guidelines and FAQs dated 30.03.2022 and 31.03.2022, respectively, issued by
M/s. NCGTC in this regard.
287/22 “PM Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi)” scheme for Street vendors – Extension/Continuation
of the scheme with the existing guidelines - Continuation of the scheme beyond March, 2022 for a period of
six months or till further guidelines from MoHUA is received in this regard, whichever is earlier, in line with
the communication dated 01.04.2022 of MoHUA, Government of India.
288/22 Policy of the bank on security arrangements For FY 2022-23
 The purpose of this policy is to provide direction for installation of safety gadgets in the premises and to
follow instructions on procedures regarding security & safety of men, materials and cash from internal
or external accidents/incidents.
 Security Provisions-Burglar alarm with auto dialer, CCTV, fire alarm.
 90 days of recordings of CCTV to be preserved.
 Two armed guards per cash van must be available for escorting cash.
 Branches having cash holding of Rs. 5 lacs and above should have a strong room as per Bank
specifications.
 Manager’s cabin should be located such that it can have an overview of entrance, cash counters and
entry to strong room.
 Remittance above Rs. 20 lakhs and upto Rs. 50 lakh–One Armed guard
 Remittance above Rs. 50 lakhs- Two Armed guard
 CARRYING OF ANY WEAPONS / OR FIRE ARMS AND EXPLOSIVES INTO THE BANK PREMISES IS STRICTLY
PROHIBITED.
289/22 Fire safety policy of the bank For FY 2022-23
 Objectives - undertake suitable and sufficient fire risk assessments of all premises and activities within
the premises. To identify and implement reasonably practical control measures to combat risks from
fire. To conduct regular fire evacuation drills and testing of emergency fire equipment. To conduct
regular fire safety inspections. To ensure compliance with all relevant legislations. To ensure effective
liaison with the local Fire Authority.
 Risk assessment of a branch will be undertaken by the respective P & E / GA section of Circle
Office/Regional Office in consultation with Security Officers as per IBA guidelines/National Building
Code-2016. They will recommend the type/ quantity of firefighting equipment for a premise.
 Deviation from Fire Safety Policy or standards and guidelines shall require written approval from the
Bank’s Security Planning Committee.
 Fire Safety Sub Committee at Circle level under the aegis of P&E Section shall be formed with Security
Officer and TFO as members. The committee will meet every quarter to discuss the Fire incidents that
occurred during the quarter and to analyse the fire causes and suggested remedial measures.
 All Circles will conduct Fire Safety Awareness Week once in a financial year.
 The most common type of extinguishers to be provided will be designed to effectively suppress the
materials found in class A, B & C types of the fire.
 Modular Fire Extinguisher to be provided to extinguish Class C fires, like UPS, battery and related
equipment.
 Extinguishers to be visible from a distance of at least 3 feet. Wall marking for fire extinguisher locations
to be visible from a distance of at least 25 feet.

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 Fire Alarm System- Every premises having an electrical power greater than 2 KVA or having a minimum
carpet area of 100 sq. ft., must be installed with a Fire Alarm System. Auto Dialer to be provided with
the Fire Alarm system. Fire Alarm should have manual Alarm Points in addition to adequate number of
Smoke Detectors. Auto Dialer telephone numbers must be updated regularly.
 Electrical Safety Audit and Fire Audit both once in three years of Branches and Admin units is to be
carried out by P&E section of the Circle Office through a qualified TFO/qualified electrical auditor/
qualified Fire Auditor.
 Power saving mode should be set for all computers/LAN to automatically turn-off, after a fixed period
of inactivity i.e. 30 minutes.
 As per RBI instructions, Fire Audit of Currency Chest is required to be conducted biannually (once in two
year) by the Govt. Fire Department and in case of non-availability of officials of the District Fire
Department, the fire audit can also be conducted by the agencies approved by the respective State /
District Fire Departments. Proper records to be maintained at CO/ RO/ CC and respective Security Cell.
 on occurrence of any incident (TBRD & Fire) : The Initial Report of the incident will be sent to HO: CSC,
immediately on occurrence within 24 Hrs by the concerned Security Officer. Subsequently, a detailed
report shall be forwarded by the concerned Security Officer to HO:CSC so as to reach within 3 days (72
Hrs) of the incident.
290/22 “CANARA JEEVANREKHA” and “CANARA CHIKITSA” loan scheme - Branches/Offices not to extend further
sanctions until further instructions communicated in this regard.
291/22 CASA account – prohibition of unrelated transactions
CASA Accounts created in the names of “Manager Canara bank”, “Canara Bank Puja Expenses”, “Canara Bank
Recreation Club” etc. are purportedly being used for routing unrelated transactions such as funds receipts from
Government bodies/ institutions, Customer Cash transactions, loan installments, deposit redemption proceeds,
etc. All Branches/Offices are strictly advised not to route unrelated transactions in the above cited accounts.
292/22 Observing May 2022 as “Self Help Group (SHG) credit linkage month”.
293/22 Introduction of functionality for debit card renewal address confirmation through sas integrated debit card
package.
294/22 Opening of current account - consolidated guidelines
Availed Cash Credit / Overdraft Facilities from the Banking System-
 For borrowers, where the aggregate exposure of the banking system is less than ₹5 Crore : Branch can
open current accounts undertaking from such customers that they shall inform the branch, if and when
the credit facilities availed by them from the banking system becomes ₹5 Crore or more.
Where the aggregate exposure of the banking system is ₹5 Crore or more: Borrowers can open current
accounts with any one of the banks with which it has CC/OD facility, provided that the bank has at least
10 per cent of the aggregate exposure of the banking system to that borrower. In case none of the
lenders has at least 10 per cent of the aggregate exposure, the bank having the highest exposure among
CC/OD providing banks may open current accounts.
Other lending banks may open only collection accounts subject to the condition that funds deposited in
such collection accounts will be remitted within two working days of receiving such funds, to the CC/OD
account maintained with the above-mentioned bank.
Non-lending banks are not permitted to open current/ collection accounts.
Not having Cash Credit / Overdraft Facilities from the Banking System-
Borrowers where aggregate exposure of the banking system is ₹50 Crore or more: Current accounts of
such borrowers can only be opened/ maintained by the escrow managing bank. Other lending banks can
open ‘collection accounts’ subject to the condition that funds will be remitted from these accounts to
the said escrow account at the frequency agreed between the bank and the borrower.
Non-lending banks shall not open any current account for such borrowers.
 In case of borrowers where aggregate exposure of the banking system is ₹5 Crore or more but less
than ₹50 Crore, there is no restriction on opening of current accounts by the lending banks. However,
non-lending banks may open only collection accounts.
In case of borrowers where aggregate exposure of the banking system is less than ₹5 Crore, Branch
may open current accounts subject to obtaining an undertaking from them that they (the Customers)
shall inform the bank(s), if and when the credit facilities availed by them from the banking system
becomes ₹5 Crore or more.
Having credit facilities only from NBFCs/FIs/Co-operative Banks/ Non-Bank Institutions: Banks are free
to open current accounts.If such borrowers avail aggregate credit facilities of ₹5 Crore or above from the
banks covered under these guidelines, the provisions of the Circular shall be applicable.
 Not availed any credit facilities from Banking System. Branches are free to open current accounts of
prospective customers who have not availed any credit facilities from the banking system.
295/22 Introduction of CANARA ELITE Current Account (218)
 Current Account Customers who maintain a quarterly average balance of ₹5 lac & above
 Cash handling charges free upto ₹10 lac per day for denominations of ₹100 and above (subject to
maximum cash deposits of ₹1 Cr per month).
 NEFT / RTGS / SMS Charges – Free Name printed Cheque Books up to 700 leaves per annum issued free
 Point of Sale (POS) Machine monthly rentals – Free Platinum Debit cards will be issued with daily cash
withdrawal limit of ₹ 50000 and with Personal Accidental Death Insurance.

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 Canara Institute of Bank Management, Manipal

 Demand Draft – Five DDs are free/Month Portability is available from existing Current Account / Canara
Privilege products to Canara Elite and vice versa.
296/22 Revised guidelines on obtention of Legal Entity Identifier code
 Non Individual Borrowers with exposure above Rs 5 Crores and less than Rs 50 Crores.
Revised timelines stipulated for obtaining LEI by Non Individual Borrowers:
Slabs / Total Exposure LEI to be obtained on or before
Above Rs 25 Crores and less than Rs 50 Crores 30.04.2023
Above Rs 10 Crores up to Rs 25 Crores 30.04.2024
Rs 5 Crores and above up to Rs 10 Crores 30.04.2025

 New Borrower entities without a LEI code would not be eligible for loans/advances from Bank beyond
the timelines specified in the above schedule.
 Existing Borrower entities, who do not obtain LEI as per the above schedule will not be granted renewal
or enhancement (including Adhoc, TOL, fresh facility) of credit facilities.
 All proposals submitted to Sanctioning Authority shall invariably incorporate the LEI code along with the
validity on the 1st page of Office Note.
 Sanctioning Authority at all levels must stipulate sanction terms & conditions regarding LEI code
obtention / renewal with stipulation of timelines for the same.
 The sanctioning office shall ensure that the LEI code along with validity shall be mentioned in the 1st
page of Sanction Memorandum communicated to Offices or Branches.
 Circle Offices have to monitor the progress on obtention of LEI code (including borrowers with exposure
above Rs. 50 Crores) and shall submit the data to CA&M Wing on quarterly basis.

297/22 Introduction of new online IT Module by DGFT for Interest Equalisation Scheme w.e.f 01.04.2022
 DGFT has informed that the online module for applying under Interest Equalisation Scheme (IES) is
operationalized with effect from 01.04.2022 to capture granular data for effective monitoring of the
scheme.
 All eligible exporters are required to submit the following documents for availing the benefits under
Interest Equalisation Scheme from 01.04.2022 1. Acknowledgement copy of UIN from DGFT site. 2.
Undertaking from the exporter for every FY as per Annexure-I of this circular.
 The UIN generated shall have a validity of one year from the date of registration, during which an
application for availing benefit of IES can be submitted to the concerned bank branch. The exporter either
to use single UIN or multiple UINs as per their convenience. Exporter can also project the estimated
details for entire year in single UIN. However branches to validate and update the loan
disbursed/subvention provided against the submitted UIN.
298/22 Self nomination for training by employees through HRMS Package
Employees to opt for their training needs at the beginning of the financial year by selecting 2 training
programmes related to his/her work area which he/she is willing to undergo during the financial year as per the
drop down list. Reporting Authority shall authorise the training needs selected/opted by the MSS. employee
under HRMS. All such training needs opted by employees shall be available to concerned HRM
Sections/LDCs/CIBM. Concerned HRM Sections shall nominate employees to the training programmes as and
when scheduled by LDCs/CIBM.
299/22 Submission of request for Identity Cards to employees through HRMS package
300/22 New Agricultural Marketing Infrastructure (AMI) – Sub - Scheme of Integrated Scheme for Agricultural
Marketing (ISAM) – extension of scheme upto 30th September,2022.
NABARD vide its letter Ref. No. NB. DoR-GSS.151/New AMI-1/22-23 dated 27.04.2022, informed that “the
Ministry of Agriculture & Farmers’ Welfare, GoI, have approved the continuation of AMI Sub-scheme of ISAM
up to 30th September, 2022”.
hence banks have to submit the subsidy applications, the claims in respect of projects where bank loan has been
sanctioned from 1st April 2022 to 30th September 2022 can be submitted in the ENSURE portal within 60 days
of disbursal of 1st instalment of loan.
301/22 Pandemic Covid-19– standard operating procedures–reiteration of guidelines
302/22 Submission of supporting documents along with TA bills through HRMS
As a part of digitalization of HR processes, submission/uploading of relevant documents along with TA bills has
been enabled in HRMS for reducing the Turn Around Time (TAT).
Employee to upload the scanned copy of bills (in PDF format & all bills/documents should be saved in one file)
duly certified by immediate supervisor in the option provided (self-certified in case of Scale IV and above).
The original bills have to be filed and maintained at respective branches/offices and the same is to be made
available at the time of inspection/audit, etc.
303/22 Submission of relevant documents while applying Medical Leave through HRMS
As part of digitalization of HR processes, submission/uploading of Medical Certificate / Fitness Certificate in
HRMS has been enabled while applying leave on Medical grounds.
Employee to upload relevant document viz Medical Certificate and Fitness Certificate (in PDF format), by clicking
on the TICK mark made available and submit.
Original Medical cum fitness certificate to be preserved in the respective Staff File maintained at concerned
branch/office. The same may be produced before inspectors etc at the time of inspection/audit.

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304/22 Modified Interest Subvention Scheme (ISS) for Short Term Loans for Agriculture and Allied Activities availed
through Kisan Credit Card (KCC) during the financial year 2021-22
 Interest subvention and prompt repayment incentive benefits on short term crop loans and short term loans
for allied activities will be available on an overall limit of Rs 3 lakh per annum subject to a maximum sub-
limit of Rs 2 lakh per farmer in respect of those farmers involved only in activities related to animal
husbandry, dairy, fisheries, bee keeping etc. The limit for crop loan component will take priority for interest
subvention and prompt repayment incentive benefits and the residual amount will be considered towards
allied activities including animal husbandry, dairy, fisheries, bee keeping etc. subject to the cap as mentioned
above
 The benefit of interest subvention under KCC will be available to small and marginal farmers for a further
period of upto six months post the harvest of the crop against negotiable warehouse receipts on the produce
stored in warehouses accredited with Warehousing Development Regulatory Authority (WDRA), at the same
rate as applicable to the agri. loan.
 With a view to providing relief to farmers affected by natural calamities, the interest subvention of 2% per
annum will be made available to banks for the first year on the restructured loan amount.
 However, in case of severe natural calamities, the interest subvention of 2% per annum will be made
available to banks for the first three years /entire period (subject to a maximum of five years) on the
restructured loan amount. Further, in all such cases, the benefit of prompt repayment incentive @ 3% per
annum shall also be provided to the affected farmers.
305/22 Process flow of the Mandatory admin card usage in ATMs for Cash Loading
Our Bank has introduced the revised guidelines of using the Admin Card mandatorily in ATMs whenever the
cassettes of the ATM are accessed during the cash loading activity or due to any other reasons. The detailed SOP
for use of Admin card is given in subject circular.
306/22 Submission of DAY-NRLM Interest Subvention Claims through SAS Package for FY 2021-22 – March Quarter
MoRD, GoI has permitted to submit the Regular & Additional subsidy claims under the subject scheme for March
Quarter for all eligible accounts.
The DAY-NRLM package under Single Authentication Service (SAS) is available from 05.05.2022 to 20.05.2022
for submission of claims. Branches to submit their claims before 13.05.2022
307/22 Rates of interest on rupee loans and advances (MCLR, RLLR, STRLLR, EBLR1 and EBLR2) w.e.f. 07.05.2022
Latest ROIs are- MCLR (One year)- 7.35%, RLLR-7.30%, STRLLR- 4.40%, EBLR1- 7.15%, EBLR2- 4.40%
308/22 Realigned National Livestock Mission (NLM) Scheme
 Considering the present need of the Sector Department of Animal Husbandry & Dairying, Ministry of
Fisheries, Animal Husbandry and Dairying, Govt. of India has announced the realigned scheme of National
Livestock Mission (NLM) for the Financial Year 2022-23.
 The realigned scheme aims towards employment generation, entrepreneurship development; increase in
per animal productivity and thus targeting increased production of meat, goat milk, egg and wool under the
umbrella scheme Development Programme.
 The realigned National Livestock Mission will have following three Sub-Missions:
 Sub-mission on Breed Development of Livestocpenalk and Poultry
 Sub-mission on Feed and Fodder Development
 Sub Mission on Innovation and Extension
 Under the proposed realigned scheme, Central Government will provide 50% capital subsidy (up to subsidy
ceiling ranging from Rs.25 lakhs to Rs.50 lakhs). The subsidy will be channelized through the SIDBI.
309/22 Reiteration of guidelines in Concessional ROI of 25bps for Housing Loans (all variants) due to revision in RLLR
w.e.f 07.05.2022
 Bank has permitted continuation of concession of 25bps in ROI in new housing loans (all variants) sanctioned
and disbursed up to 30.06.2022
 The facility of concession of 25 bps shall remain same till the loan completes 3 years from the date of
disbursement.
 Branches/Offices to strictly adhere as advised while linking schedule codes, only for Low Risk borrowers
where score band under Canara Retail Grade is CRG-1>80 i.e Low Risk.
 After 3 years the extended concession of 25bps shall stand withdrawn and prevailing schedule code has to
be restored in the CBS.
310/22 Payment of Performance Linked Incentive Scheme for the employees of the Bank in terms of 11th Bipartite
Settlement/ 8th Joint Note dated 11.11.2020 for the Financial Year ended with 31.03.2022
For the financial year 2021-22, based on the financial results, Bank has declared Performance Linked Incentive
for 15 days. As such, all the eligible employees viz., employees who are/were on the rolls of the Bank from
01.04.2021 to 31.03.2022 are covered for payment of 15 days salary (Basic + DA) as Performance Linked
Incentive for the financial year 2021-22.
311/22 Coverage of eligible education/skill loans sanctioned under CGFSEL & CGFSSD for march 2022 quarter
All Education Loans sanctioned up to a limit of Rs.7.50 lakhs without any collateral security/third party guarantee
are eligible for coverage under Credit Guarantee Fund Scheme for Education Loan (CGFSEL).
Skill Loans sanctioned up to a limit of Rs.1.50 lakhs without any collateral security/third party guarantee are
eligible for coverage under Credit Guarantee Fund Scheme for Skill Development Loan. Branch to update the
information before 31.05.2022 and circle office to forward the claims before 04.06.2022.
312/22 Central Sector Scheme of Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS) –
Implementation of the Scheme during 2022-23

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 National Safai Karmacharis Finance & Development Corporation (NSKFDC) which is the nodal agency of
Government of India for implementing the SRMS Scheme vide their letter Ref. No.NSKFDC/SRMS/Proposals
from Banks/04/22-23 dated 22.04.2022 conveyed implementation of Scheme during FY 2022-23.
 A Notional allocation of Rs.10.00 crores has been allotted by NSKFDC to our Bank for sanction and
disbursement of loan under SRMS during 2022-23
 Credit linked capital subsidy will be provided upfront to the beneficiaries. For individual project cost upto
Rs. 5 lac- subsidy will be 50% of project cost and for project cost from Rs. 5 to 15 lacs-subsidy of Rs.2.5 lakh
+25% of remaining project cost. For group project Up to Rs.10.00 lakh per beneficiary maximum project cost
up to Rs.50.00 lakh-subsidy of Rs. Max Rs. 3.75 lac per beneficiary.
 Projects of Self Help Groups/Groups costing up to Rs.50.00 lakh would be admissible for assistance.
 Interest subsidy- For projects upto Rs.100000/- -- 5% per annum (4% per annum for Women beneficiaries)
(b) For projects above Rs.100000/- -- 6% per annum.
 NSKFDC would provide interest subsidy for rate of interest charged by the bank over and above the rate of
interest chargeable under SRMS.
313/22 Approved list of transport operators– consolidated list updated till 31st march 2022.
314/22 Merchant Onboarding & Digital transactions Incentives - POS, BHIM QR & BAP from 16.05.2022 to 15.06.2022.
Promotion of digital transactions, retention of merchants and increasing the active merchant database through
POS (Point of Sale), BHIM QR Codes and BAP (BHIM AADHAAR POS) terminals.
Based on eligibility mentioned below,
I. Merchants shall be incentivized for increase in transactions using POS & BHIM QR and
II. Business correspondents and Merchants shall be incentivized for BAP (BHIM AADHAAR POS)- Onboarding &
volume of transactions.
sl Product Eligibilty criteria Incentive Beneficiary of
Amount in Rs. the incentive
1 UPI_QR 25% of increase in transaction 1000 QR merchant**
volume and value over previous
month subject to minimum of 50
transactions and transaction volume
of Rs.50,000/-
2 POS 25% of increase in transaction 1500 POS merchant*
volume and value over previous
month subject to minimum of 50
transactions and transaction volume
of Rs.1,00,000/-
3 BAP Onboarding of a BAP device by 100 Business
Business Correspondent Correspondent
4 BAP Minimum of 10 transactions and 500 BAP merchant
transaction value of Rs.25000/- in a
month.
*Incentive shall be applicable to merchants where no concession has been extended under MDR.
**Corporate BHIM QR merchants are not eligible for the incentive.
Incentive to the Merchants and Business Correspondents shall be extended for a period of 1 month starting from
16.05.2022 to 15.06.2022
315/22 Reporting of un-authorised / suspect / fraud AEPs transaction done through BCchannel
Vide HO Circular No. 541/2019 dated 21.10.2019 wherein detailed guidelines/ procedure for reporting of un-
authorised AEPS Transactions is given. Bank has reiterated the guidelines/ procedure enumerated in the above
mentioned Circular.
Please note that all the required documents are to be filled in all aspects and it shall be duly signed by the Branch
Head along with branch seal and send to [email protected] for resolution.
316/22 Master Circular on SHG-Bank Linkage Programme
 Self Help Groups have the potential to bring together the formal banking structure and the rural poor for
mutual benefit. Recognizing the importance of SHG Bank linkage, banks have been advised to meet the
entire credit requirements of SHG members.
 While opening SHG SB accounts, the current instructions under Simplified norms for Self Help Groups (SHGs)
mention that CDD of all the members of SHG as mentioned in the above Direction shall not be required while
opening the savings bank account of the SHG. CDD of all the office bearers shall suffice
 Customer Due Diligence (CDD) of all the members of SHG may be undertaken at the time of credit linking of
SHGs.
 Loans to SHGs are allowed to be classified under Priority Sector Lending (PSL) under the respective categories
viz Agriculture, MSME, Social Infrastructure and others, subject to extant guidelines.
317/22 Information technology procurement policy for the financial year 2022-23
Considering the changes in various regulatory guidelines for procurement viz. General Finance Rule (GFR), CVC,
Make-in-India (MII), GeM Portal etc., the Information Technology Procurement Policy has been revised.
The revised policy is reviewed & approved by the Competent Authority with modifications/additions, which is
incorporated in Information Technology Procurement Policy, version 4.0.
318/22 Revision in Interest Rates on Domestic & NRO Term Deposits w.e.f. 12.05.2022.
 Bank has revised Interest Rates on Domestic and NRO Term Deposits w.e.f. 12.05.2022.

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 Interest rate for bulk deposits of Rs. 10 Crore & above is to be obtained from Integrated
 Treasury Wing, Mumbai.
 Bank has discontinued “Canara Unique” Deposit Scheme of 1111 Days (HO Cir 115/2021 dated 04.03.2021)
and “Canara Amrit-75” Deposit Scheme for 75 Months w.e.f. 26.01.2022 (HO Cir 793/2021 dated
13.12.2021).
 New Rate Bucket of “270 Days to less than 1 Year” is introduced
 For deposit less than Rs 2 crore – slab 1 to 10 ROI is @ 2.90%,
4.00%,4.05%,4.50%,4.55%,5.30%,5.40%,5.45%,5.70%, 5.75%
319/22 Revision in Interest Rates on NRE Term Deposits w.e.f. 12.05.2022
The Rates of interest on NRE term deposits stands downwards revised w.e.f. 12.05.2022.
There is Total slabs of interest. For slab 1 to 5 – ROI is @ 5.30%, 5.40%, 5.45%, 5.70%, 5.75% The maximum
period for accepting NRE term deposits is 10 years and the minimum period for accepting NRE term deposits is
one year.
Where NRE term deposit is closed before maturity/prematurely extended before completion of one year from
the effective date of the deposit, no interest shall be payable for the period run.
320/22 Revision in Interest Rate on Canara Tax Saver Deposit Scheme w.e.f. 12.05.2022
Bank has revised ROI on Tax saver deposit (for 5 years) at 5.75% from 12.05.2022. Senior Citizens are eligible for
0.5% and employees/ex-employees/ senior citizen ex-employees are eligible for 1% additional interest only.
321/22 Housing Loan-Prevention of Frauds – DO’s & DONT’s
322/22 Canara Vehicle Loans - Prevention of Frauds – DO’s & DONT’s
Bank has issued Reiteration of some of the Important DO’s & DONT’s to Prevent Frauds under Canara Vehicle.
There is a Need for Strict Compliance of guidelines in respect of Identification, KYC, Pre-Sanction, Due diligence
in Processing, Sanction, Disbursement and Post Sanction monitoring of Canara Vehicle Loans thereby preventing
frauds under this scheme.
323/22 Master Circular on disbursement of Government Pension by Agency Banks
Reserve Bank of India has been issuing various instructions and guidelines by way of notifications with regard to
the payment of pension. With a view to make available all the updated instructions and guidelines, Reserve Bank
of India vide their Notification no: RBI/22-23/09 DGBA.GBD.No.S2/31.02.007/22-23 dated 01.04.2022 has issued
the Master Circular which is updated till March 31,2022.
A copy of the revised Master Circular is attached in the Annexure of this Circular, for the Branches/ Offices to note
the changes/ modifications for strict compliance.
324/22 Authorisaton of marking of customer “Deceased‟ in CBS(CIM 09) at RO Level
The waiver of penalty interest at system level, in case of premature closure of Term Deposits is allowed only if
the Customer ID linked to that particular Term Deposit is marked as “Deceased”.
Hence to control operational risk, the authorisation of Customer marked as “Deceased” in CBS by Branches is
delegated to a designated official at Recovery Section of Regional Office.
325/22 Krishi Varsha”-Fresh Core Agriculture Term loan disbursement Campaign- June 2022 from 01.05.2022 to
30.06.2022.
To reach Core Agriculture Advances Target of bank for June 2022 Quarter Bank has launched Krishi Varsha
Campaign from 01.05.2022 to 30.06.2022.
 The Focus is on Fresh Core Agriculture disbursement especially on Term loan and New Agricultural
Schemes.
 New avenues for financing of agriculture loans are available like Financing to Food and Agro Processing,
Biogas and Bio fuels, Agriculture infrastructure, dairy, FPO/FPC etc. Scheme wise targets were conveyed
to circles bases on the potential and further circles, Regions, AEOs, AF Hitech Branches and ACCs to tap
the unexplored areas of finance.
 Existing regular customers targeted for availing their need based term loan requirements.
Performing AEOs, Branches/ROs/Cos during the campaign will be suitably rewarded.
326/22 “CANARA KISAN SAMPARK ABHIYAN” - Farmers Mass contact Campaign.
To achieve the desired growth / targets for FY 2022-2023, it has been decided to launch “Canara Kisan Sampark
Abhiyan” Campaign i.e., meeting all the farmers in command area by
the branches in campaign mode for canvassing new agricultural loan accounts, contacting all KCCs borrowers
which are due for renewal, contacting all SMA & NPA borrowers to achieve SMA & NPA target. Campaign will be
in operation from 16th May 2022 to 30th June 2022.
327/22 Associate Party Product Business- Mandatory capturing of Insurance Business (Life, Health & General) in
“Insurance Business Monitoring Solution” (IBMS) by Specified Persons.
Insurance Business Monitoring Solution (IBMS) package was introduced via HO Spl. Comm. No. 143/2021, dated:
07.10.2021. Insurance Business Monitoring Solution (IBMS) package facilitates capturing of Insurance Business
(Life, Health & General) solicited at Branch Level. IBMS Package is a facility to develop an MIS related to Insurance
Business.
Hence all specified persons (SP’s) are hereby advised to ensure that all the New business pertaining to life/non
life business should be invariably Captured in the IBMS package with immediate effect. Maker-Checker concepts
at branch level and Single User Role to Marketing/MIPD section ROs & COs have been assigned.
328/22 -
329/22 Guidelines on Constitution of the Official Language Implementation Committee (OLIC) at Offices & Branches
 As per the Annual Programme and as per the instruction given by O L Dept., MoHA, Govt. of India, its
obligatory on the part of the Bank to constitute OLIC at HO, CO, RO, all Administrative Units and at all

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branches and conduct quarterly meeting of the said committee in order to know the status of
implementation of OL at the respective office or branch. The head of the Branch/ office will be the chairman
of the OLIC meeting.
 A maximum of 4 staff shall be the members of the OLIC Committee depending upon the staff strength
availability in the branches. Other Staff could be invited for the meetings on need based and on requirement.
 The discussion during the meeting shall be based on figures in STR 18 statement of the branch and use of
Hindi in their day to day work and customer service in Hindi and respective Regional Languages.
330/22 Quoting PAN or Aadhar number in certain transactions with bank.
The Central Board of Direct Taxes (CBDT) vide Notification No. 53/22-Income Tax dated 10th May, 2022 notified
a new set of rules i.e. Rule 114BA & Rule 114BB to amend the existing Income-tax Rules, 1962 which shall come
into force from 26th May 2022.
Accordingly following three new transactions will require quoting of PAN/Aadhaar (Individual).
 Cash deposit or deposits aggregating to Rs.20 lakhs or more in a financial year, in one or more accounts of a
person.
 Cash withdrawal or withdrawals aggregating to Rs.20 lakhs or more in a financial year, in one or more
accounts of a person.
 Opening of a current account or cash credit account by a person.
331/22 Formation of New Wing at Head Office Bangalore – Transaction Monitoring Wing
Need for improving the Risk Mitigation process of the bank pertaining to prevention of Frauds and Monitoring
of Transaction a new dedicated wing was envisaged. Accordingly, New wing under the nomenclature
“Transaction Monitoring Wing” is formed at Head Office Bengaluru from 01.04.2022.
For prevention of Frauds and Monitoring of Transaction the following sections of the Bank, which were under
different wings of the bank are now brought under the new Wing
1. Anti-Money Laundering/Combating Financing of Terrorism (AML/CFT) from Central Processing Wing
2. Offsite Transactions Monitoring (OTM)from Inspection Wing
3. Enterprise Fraud Risk Management –Online Monitoring (EFRM-OM)fromRecovery, Legal & Fraud
Prevention Wing
4. Early Warning Signals (EWS) fromCredit Administration and Monitoring Wing
The alerts are generated based on the predefined scenarios, as per directions of RBI/FIU-IND and our Bank
guidelines. The above four sections analyze the deviation of transaction wherever signs of suspicion of wrong doing
is noticed and alert the CO/RO/Branches to prevent loss or fraud.
332/22 Standard Operating Procedure on safe keeping of Mortgage Papers
Bank has introduced Standard Operating Procedure on Safe Keeping of Mortgage Papers incorporating the
procedural guidelines on preservation, storage and safe keeping. Important guidelines are as follows-
 Loan Documents and Title Deeds under mortgage for each credit facility shall be preserved separately in two
individual, distinctly labelled covers, for easy identification. A separate NB132- Inward register has to be
maintained for EMTs.
 Key holders of the double lock safe/ specific almirahs holding the mortgage papers (Credit Managers/
Officers) shall be held responsible for missing/misplacement of Mortgage papers.
 Mortgage papers including that of closed loans and advances which are not yet delivered to mortgagors, are
to be reported to Credit Administration Section of RO, BS&IC Section of CO and a consolidated position to
CAM Wing for appraisal to Top Management.
 System driven package in SAS to track release of documents post closure is already introduced [Closed
Mortgage Loan Tracking System CMTS] to track release of documents post closure of all direct/Indirect
liabilities. Branches/Service Units are required to update the details in the package post closure of
loans/credit facilities (as per HO Cir 65/2020 & 828/2021
 Confirmation on Balancing of Mortgage papers is to be given in PRR 18 for the month of February and August,
every year.
333/22 Policy on staff accountability
334/22 RBI Circular – Distribution of Visually Impaired Friendly Series (VIFS) Coins
GOI has, in 2019, issued a new series of visually impaired friendly coins in denominations of Rs 1, Rs 2, Rs 5, Rs
10 and Rs 20 with various differentiating features for the visually impaired. For facilitating easy distribution of
these coins it is advised to provide the coins in small packets/pouches viz packets of 100, 200 etc.,
Also It is imperative that these coins are put into circulation through all the Branches so that the intended
segment of public across the country can be benefitted.
335/22 Financing of loans in favour of any stakeholders within the legal stock-limits as imposed on Edible Oils and Edible
Oil Seeds.
A notification by the Ministry of Consumer Affairs, Food and Public Distribution dtd 30.03.2022 on stock holding
limits on edible Oils and Oilseeds- it was instructed that All edible Oils and Oilseeds put together for a period
upto 31st December, 2022 with following stock limit, for all States/Union Territories.
 For edible oils- Retailers-30 quintals, wholesaler-500 quintals, for Big chain retail shop-retail-30 quintals,
wholesaler-1000 quintals, for processors- 90 days production capacity.
 In case of edible oil seed- Retailers-100 quintals, wholesalers- 200 quintals, for processors- 90 days
production capacity.
“In case, the stocks held by respective legal entities are higher that the prescribed limits then they shall declare
the same on the portal (https://evegoils.nic.in/eosp/login) of Department of Food & Public Distribution and bring
it to the prescribed stock limits in this Control order within 30 days of the issue of this notification”.

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All Branches/Offices are advised to make note of the above and ensure that credit not extended for the financing
stocks, over and above the stock limits imposed by the Government authorities from time to time.
336/22 Lending by Commercial Banks to NBFCs for the purpose of on-lending to priority sectors.
In order to ensure continuation of the synergies that have been developed between banks and NBFCs in
delivering credit to the specified priority sectors RBI has decided to allow the above facility on an ongoing basis
as per RBI notification No. FIDD.CO. Plan. BC. No.5/04.09.01/22-23 dated May 13,2022.
However, bank loans to NBFCs (including HFCs) for on-lending will be allowed up to an overall limit of 5 percent
of an individual bank’s total priority sector lending in case of commercial banks.
Further, existing loans disbursed under the on-lending model will continue to be classified under Priority Sector till
the date of repayment/maturity as per RBI direction FIDD. CO.Plan.BC.No.8/04.09.01/2021-22 dated 7th April
2021.
337/22 CANARA LRD – additional guidelines
Wherever, Tenants (lessees) are not willing to execute Tri Partite Agreement due to genuine reasons, an
Assignment Agreement cum Power of Attorney duly accepted by the Lessee(s) in lieu of Tri Partite Agreement
may be obtained.
ED-CAC and above authorities are delegated up to their sanctioning powers for obtention of Assignment
Agreement cum Power of Attorney duly accepted by the Lessee(s) in lieu of Tri Partite Agreement on case to
case basis.
Format of Assignment Agreement cum Power of Attorney is enclosed as Annexure I to this circular.
338/22 CANARA DiYA (Digitally Your Account) - relaunch of revamped version.
 Canara DiYA an Account Opening Application/URL is being re-launched with effect from 24.05.2022. Canara
DiYA App can be downloaded from Google Play Store / iOS Store or Canara DiYA URL shall be used.
 Instant Saving Bank Account can be opened online in 4 easy Steps without visiting the Branch.
 For opening of new account in Canara General SB-101 and Canara Jeevandhara-110 product code, PAN and
Aadhar linked mobile number is mandatory.
 After successful completion of the account opening process using Canara DiYA, an URN (Unique Reference
Number) shall be provided instead of account number. The fully KYC compliant account number shall be
generated only after completion of Video KYC process.
 Customer Due Diligence (CDD) is not required within one year of opening the account as the generated
account number shall be KYC Compliant Normal Account.
 On successful opening of the account, Customer will instantly get the Welcome Kit on their registered email
ID and it contains important information like Customer ID, Account Number, Nomination details of customer
etc. Further, Personalized Debit Card shall be sent to the given Communication Address of Account holder.
339/22 Standard operating procedure on undelivered cheque books and Undelivered debit cards – existing guidelines
reiterated.
 “UNDELIVERED CHEQUE BOOKS” & DEBIT CARDS will be redirected/returned and delivered to CPHs linked
to respective base branch.
 Branches to generate report of “Undelivered Cheque Book” returned to CPHs on DAILY basis and follow up
with customer for KYC documents and address updation/correction.
 Personalised Cheque books and debit cards, lying undelivered beyond a period of THREE months from the
date of issue/return of the cheque books by India Post /Courier agency, shall be destroyed by CPH after
exhausting all steps for delivery of the same.
340/22 Accounting of Regulatory Penalties – Master Directions
The regulatory penalties imposed on the bank are broadly classified as follows:
a. Penalties for ATM cash-out-
b. Penalties relating to currency chest operations
c. Penalties from RBI incognito visits
d. Banking Ombudsman Awards
e. Other Regulatory Penalties

For first 3 types of penalties accounting procedure is as follows-

 Penalties for ATM cash-out- Accounts Sections to debit Digital Banking Services wing (DP00056) SA-Penalty
(GL-122422145) through GEFU file.
 Penalties relating to currency chest operations- Accounts Sections to debit respective Currency Chests SA-
Penalty (GL-122422145) through GEFU file.
 Penalties from RBI incognito visits- Accounts Sections to debit SA-Penalty (GL-122422145) of the respective
branch through GEFU file.
 For Banking Ombudsman Awards/Other Regulatory Penalties- Only after approval from the competent
authority (CO/HO), the branches shall make the payment in CBS. Ensure that the payment of penalty is
made by debiting SA Penalty/ Penal Interest (122422145) only. After penalties paid, where all recovery steps
have been exhausted, the same may be recommended for write off, After completing the process of staff
accountability aspect.
Please note that SA-Penalty (GL-122422145) is blocked presently for all the branches/offices for routing the
transactions. Before running GEFU file, Accounts Sections shall seek permission from Compliance Department
for unblocking the GL of respective branches/offices.
341/22 Annual circular on e-learning for the FY 2022-23

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 Mandatory Learning is applicable to Officers in Scale I to III and Executives in Scale IV and V [collectively
referred to as Eligible Officers]. All Eligible Officers have to complete 12 Mandatory Courses / Lessons
during the current FY on or before 28th February 2023.
 Total marks in Annual Performance Appraisal for Mandatory Learning – 10 Marks (12 Courses, each carrying
0.50 mark totalling 06 marks plus 04 Bonus Marks -2 Bonus marks for completion of 06 Mandatory Courses
on or before 30th September 2022 and 02 Bonus marks for completion of all 12 Mandatory Courses by 28th
February 2023)
 Branches/Offices shall strictly follow the extant guidelines w.r.t. completion of mandatory learning.
342/22 Special Package under Housing Loan, Education Loan & Vehicle Loan schemes to the employees of Canara HSBC
Oriental Bank of Commerce Life Insurance – On All India Basis
A Special Package has been permitted under Housing Loan, Education Loan & Vehicle Loan schemes to the
employees of M/s Canara HSBC Oriental Bank of Commerce Life Insurance. This Special Package is valid till
30.04.2023.
 100% waiver in the applicable processing charges for Housing Loans, Canara Vehicle Loans (four wheeler)
and Education Loans (for dependent members of employees)
 Concession in ROI under Vehicle Loans (four wheeler). Concessional ROI @ RLLR+0.10% i.e., 7.40%, involving
a maximum interest concession of 90 bps irrespective of the category of the borrower up to Moderate Risk
(CRG-3) only. Customers falling under High Risk Category shall be charged as per prevailing Card Rates.
343/22 -
344/22 Fraud risk management policy of the bank for the year 2022-23
The Fraud Risk Management Policy of the Bank for the year 2022-23 has been approved by the Board in its meeting
held on 06.05.2022. The same is furnished in the Annexure to this Circular.
345/22 Revised Definition of Micro, Small and Medium Enterprises – Additional guidelines in respect of obtention and
updation of Udyam Registration Certificate (URC) details of MSMEs.
 The existing Entrepreneurs Memorandum (EM) Part II and Udyog Aadhar Memorandum (UAMs) of the
MSMEs obtained till June 30, 2020 shall remain valid till June 30, 2022 for classification as MSMEs.
 Further now ‘Udyam Registration Certificate’ details shall be updated in CGTMSE portal also, wherever
possible, while submitting the application for Guarantee for new as well as existing accounts..
346/22 Traditional insurance policies for FY 2022-23 and guidelines for claim processing
 Vide HO Circular No. 196/22 dated 31.03.2022 details about Insurance Polices covered from 01.04.2022 on
Traditional polices viz, Bankers Indemnity Policy and Master Assets Policy with M/s National Insurance
Company Ltd. was provided
 Branches / Offices can download the complete Policy Document and Claim Forms from Cannet through the
link as under: https://cannet/NEWCANNET/MarketingOfficers/BANKERS%20INDEMNITY%20AND%20M
ASTER.pdf
 Details of mandatory documents required for processing of Insurance claims are annexed to this Circular.
 All other guidelines as contained in Cir No. 196/22 dated 31.03.2022 shall remain unchanged.
347/22 Consolidated guidelines on opening of cash credit / overdraft facilities
The guidelines issued by RBI with regard to opening of Cash Credit/ Overdraft facilities are as under:
 When a borrower approaches a bank for availing CC/OD facility, the bank can provide such facilities without
any restrictions placed vide this circular if the aggregate exposure of the banking system to that borrower is
less than Rs. 5 crore. However, the bank must obtain an undertaking from such borrowers that they (the
borrowers) shall inform the bank(s), if and when the credit facilities availed by them from the banking system
becomes Rs.5 crore or more.
 For borrowers, where the aggregate exposure of the banking system is Rs.5 crore or more:
 Banks having a share of 10 per cent or more in the aggregate exposure of the banking system to such
borrower can provide CC/OD facility without any restrictions
 In case none of the banks has at least 10 per cent exposure, bank having the highest exposure among
CC/OD providing banks can provide such facility without any restrictions.
 Where a bank’s exposure to a borrower is less than 10 per cent of the aggregate exposure of the banking
system to that borrower, while credits are freely permitted, debits to the CC/OD account can only be for
credit to the CC/OD account of that borrower with a bank that has 10 per cent or more of aggregate
exposure of the banking system to that borrower.
 In case there is more than one bank having 10 per cent or more of the aggregate exposure, the bank to
which the funds are to be remitted may be decided mutually between the borrower and the banks.
348/22 -
349/22 Mutual fund Business- Mandatory capturing of Mutual Fund Business in “Insurance Business Monitoring
Solution” (IBMS).
1. IBMS package was introduced via spl. Comm. No.143/2021, dated: 07.10.2021 To facilitate capturing of
mutual funds and insurance business solicited At branch level
2. .All branches are hereby advised to ensure that all the new business Pertaining to mutual funds should
be invariably captured in the IBMS Package with immediate effect.
350/22 Upgradation of restructured accounts – additional guidelines
After compliance of required conditions for upgradation, Branches/ Offices shall obtain permission for
upgradation of the account from Sanctioning Authority (i.e. the authority which has permitted the Resolution
Plan) by submitting the details as per the format given in Annexure I of this circular.
351/22 -

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352/22 Scheme of delegation of powers for credit sanctions-updated till 31.03.2022

353/22 Kisan Credit Card Scheme – Eligibility criteria for farmers engaged in Fisheries/Aquaculture
Beneficiaries must own or lease any fisheries related assets such as ponds, tanks, open water bodies, raceways,
hatcheries, rearing units, boats, nets and such other fishing gear as the case may be and possess necessary
authorization / certification as may be applicable in respective states for fish farming and fishing related activities
and for any other State specific fisheries and allied activities.
354/22 -
355/22 Scheme of delegation of powers for credit sanctions – modifications
356/22 Pre-Sanction verification of credentials of applicants through our Bank officials / Vetting Agencies / M/s
Perfios (Fin-Tech Company) - Reiteration of guidelines to ensure due Diligence.
 Pre-sanction verification of credentials of applicants through vetting agencies as a part of due Diligence is a
mandatory aspect of retail loans sanction process.
 However wherever services of Vetting Agencies are not available, Independent verification of customer
credentials (Customers Due Diligence) is to be done by our Bank staff/officials
 RAHs/ Branches can utilize the services of M/s Perfios (Fin-Tech Company) for Digital Due Diligence of
customer’s credentials.
 RAHs/Branches can access the link URL: https://canarabankretail.integreat.perfios.com to utilize the facility.
To get the user credentials RAHs/Branches shall send their request for user creation through email to
[email protected] with following details (Name of the Staff, Staff No, DP code, Mobile No, Bank
Personal email id).
357/22 Master policy on credit risk management – domestic branches - for FY 2021-22 –updated till 31.03.2022
358/22 MSME policy of the bank for financial year 2022-23
Bank has put in place “MSME Policy” for Financial Year 2022-23, updated till 31.03.2022, the same is annexed to
this circular.
The comprehensive policy is an elucidation of the framework of various norms applicable to non-schematic as
well as schematic MSME lending and shall be read in conjunction with “Master Policy on Credit Risk Management
for Domestic Branches” and “Delegation of Powers for Credit Sanctions” and other important guidelines.
359/22 Underwriting guidelines for extending cover on exporter-accounts pertaining to the gems, jewellery and
diamond (GID) sector under the whole turnover – export credit insurance for bank (WT-ECIB) cover W.E.F.
01.04.2022
ECGC vide their Circular Ref No. HO/BDU/622/22-23 dated 18.05.2022 has reviewed its underwriting guidelines
for GJD sector and modified the same for extending cover on exporter-accounts pertaining to the GJD sector
under the WT-ECIB cover with effect from 01/04/22.
For accounts under GJD sector upto exposure of Rs. 100 crores, WT-ECIB will be continued and for exposure
beyond Rs. 100 crore, Individual ECIB has to be obtained. Detailed guidelines are enumerated in the circular.
360/22 Revised scheme guidelines of Agriculture Infrastructure Fund (AIF)
Ministry of Agriculture & Farmers Welfare, Government of India, has conveyed following revised scheme
guidelines of Agriculture Infrastructure Fund Scheme as under-
1. The following projects for individual beneficiaries as well as Farmers, Communities such as FPOs, PACS, SHGs,
JLGs, Cooperatives, National and State Level Federation of Co-operatives, FPOs federations, Federations of
SHGs, National and State Level Agencies etc. as these are for the benefit of community.
a) Farm/Harvest Automation
b) Purchase of drones, putting up specialized sensors on field, Blockchain and AI in agriculture etc.
c) Remote sensing and Internet of Things (IOT) such as automatic weather station, Farm advisory services
through GIS applications.
2. Only for FPOs, PACS, SHGs, JLGs, Cooperatives, National and State Level Federation of Co-operatives, FPOs
federations, Federations of SHGs, National and State Level Agencies etc. as they qualify as community
farming assets.
a) Hydroponic Farming – Hydroponics is a type of horticulture and a subset of hydro culture which involves
growing plants without soil, by using mineral nutrient solutions in an aqueous solvent.
b) Mushroom Farming – Mushroom Spawn, preparing of compost, Spawning of mulch, Casing, mushroom
production, harvest and supply chain infrastructure.
c) Vertical farming – It is the practice of growing crops in vertically stacked layers. It often incorporates
controlled-environment agriculture, which aims to optimize plant growth and soil less farming
techniques.
d) Aeroponic farming – It is the process of growing plants in an air or mist environment without the use of
soil or an aggregate medium.
e) Poly house/Greenhouse – It is a technique where specialized polythene sheet is used as a covering
material under which the crop can be grown in partially or fully controlled climatic conditions.
361/22 Replacement of Print Payment Advice (PPA) with Electronic Payment advice (ePA) in Public Financial
Management System (PFMS).
PFMS had introduced new mode of payment Electronic Payment Advice (ePA) to reduce the manual interface in
payment system. Now, it has been decided that Print Payment Advice (PPA) mode will be completely phased out
by 15th June 2022.With effect from the due date, only ePA (mobile banking & internet banking only) and DSC
mode will be made available to the agencies having accounts with us to process payments in PFMS.
In view of the above all the branches are advised to necessarily issue Net Banking login ID and transaction
passwords to all the Government Agency customers before 15th June, 2022 so as to avoid any complaints from

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the concerned Departments for delay in payments. From 15th June 2022 onwards, the users will not be able to
generate PPA from PFMS, instead they have to use ePA for authorization of Payment advices using their Net
Banking credentials.
362/22 Implementation of online facility through HRMS package for submission of request for transfer by employees
in Clerical cadre
As a part of digitalization and to make the process flow easier, new module for submission of request for transfer
by employees in Clerical cadre is enabled in HRMS package.
The willing employees can submit their request through HRMS Package only. Manual applications will not be
considered. The employees who have already submitted their request manually have to apply again in HRMS
package.
Option window in HRMS shall be kept open from 30.05.2022 to 04.06.2022 for submission of requests by the
respective employees in Clerical cadre. Procedure for submission of request:
HRMS -> Self Service -> Clerical Transfer
363/22 Extension of Timeline for generation of Application IDs and for uploading of all eligible claims: CLSS for
EWS/LIG under PMAY-(U)
MoHUA, NHB has decided to extend the timeline upto 15 June 2022 for generation of Application IDs on CLAP
(CLSS Awas Portal) portal and upto 30 June 2022 for uploading of claim Application Forms by PLIs on CNA Portal
wherein, housing loans are sanctioned and disbursed upto 31.03.2022.
Hence related branches/RAHs are requested to upload claims within stipulated timelines as no further extension
of timelines will be granted.
364/22 Modification in Scheme Guidelines under PM Micro Food processing Enterprises (PM FME) Scheme
Ministry of Food Processing Industries, Govt of India vide their letter F.No. FM-11/64/2021-FME-Part(2) dated
18.05.2022 has issued following modifications in the guidelines of PM- FME Scheme as under-
 All existing or new micro food processing enterprises are eligible under the scheme, While enterprise
involved in the product identified in the ODOP of the district will be preferred, other micro enterprises would
also be considered for both existing or new micro food processing enterprises. However, list of food
processing activities placed at Annexure-I are not eligible for assistance under the scheme.
 For Individual micro food processing unit- project cost excludes cost of land/rental or lease work shed and
technical civil work should not be more than 30% of the eligible project cost.
 Now Pvt. Ltd. Companies also eligible under the scheme.
 Now No minimum educational qualification of the applicant is required (Earlier minimum VIII standard
qualification was required).
 Applicant/enterprise is eligible for bank loan under the scheme, even if he has availed bank loan in other
subsidy Linked Schemes of Govt. Applicant is also eligible for Interest Subvention and Top up convergence
with other relevant Govt. Sponsored Schemes. Lending Banks may consider sanctioning need based working
capital limit to the beneficiaries, as admissible. However, no subsidy would be provided on the working
capital.
 The applicants/ Entrepreneurs of existing units under stress and qualifying for restructuring by the Banks are
also eligible for upgradation/ expansion of the unit under the scheme.
 Under Group category- FPCs are also eligible.
 For Applicant organization- Maximum project cost ceiling is Rs. 3 crore under Group category excludes cost
of land/rental or lease work shed and technical civil work should not be more than 30% of the eligible project
cost.
 Total eligible project cost should not exceed Rs. 10 crores. There will be no pre-condition of minimum
turnover and experience of the applicant organization.
The modified guidelines have brought many other entities under the scheme, which helps the Branches/Offices
to source good number of proposals under the scheme.
365/22 Retail lending policy of the bank for the FY 2022-23
The “Retail Lending Policy” is introduced with an objective to have all the guidelines in one nut shell which is in
conjunction with Credit Risk Policy and Delegation of Powers issued by Risk Management Wing.
This Policy also covers all the Retail Lending Scheme guidelines in detail for the benefit of the branches / offices
and the same is updated till 31.03.2022.
This compilation has been divided into 4 (four) chapters as under:
1. General Guidelines
2. Policy Aspects On Retail Lending
3. Gist On Products Under Retail Lending
4. Product Details
366/22 Master policy on credit risk management for the FY 2022-23 – for domestic branches – modifications
367/22 Extension of validity of relaxations in Procedures respect of claims under Pradhan Mantri Jeevan Jyoti Bima
Yojana (PMJJBY) & Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Vide HO Circular No 508/2021 the revised procedure /relaxations of claim procedure under PMJJBY & PMSBY
were communicated. Since the revised relaxed procedure has helped to settle claims faster hence DFS has
made the same process to continue on an ongoing basis.
Further in this circular, Proof of death as required in both schemes is enumerated in details.
368/22 Introduction of Monthly Confirmation Certificate regarding uploading of CASA applications by the branches
to CPH package immediately after receiving from the customer.

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A Monthly Certificate confirming that “All the branches coming under our CO/RO are promptly uploading the
CASA applications to the CPH package immediately on receipt from the customers”. The subject compliance has
to be submitted by the Circles, commencing from the month of May 2022 onwards after obtaining compliance
from the Regional Offices.
369/22 Indent of Books & Forms & Stationery by the Branches/Offices through “Printing Stationery Inventory
Management System (PSIMS)” Package
 All the Branches are requested to estimate the Stationery requirements well in time and place the indents
through the PSIMS Package.
 Indents may be placed in Trilingual forms by the Branches which are made available in PSIMS package for
the use of the Customers.
 Indents placed in the PSIMS package are to be acknowledged on delivery without fail
370/22 The policy on mandatory leave
 The policy has been framed with an objective that it will be a tool of preventive vigilance and as an
operational risk management measure.
 Bank has classified various position under sensitive position for working. Employees working on such desk,
needs to avail 10 days mandatory leaves after permission from appropriate authority.
 Transfer from a particular position will be treated as compliance with the provisions of the Mandatory Leave
policy. For this purpose, the change in position should be to other branch/office/department.
 While on mandatory leave he/she shall not be provided any access to any physical or virtual resources
related to his work responsibilities, with the possible exception of Corporate Email.
 Subordinate Staff members are exempted from ‘Mandatory Leave & Be Away from Desk Policy’.
 All staff members covered under Mandatory Leave Policy shall be compulsorily sent on leave by the
concerned Leave Sanctioning Authority for not less than 10 working days in a single spell every calendar year
maintaining an element of surprise.
371/22 Canara Bank Hindi Incentive Schemes -2022, Consolidated Guidelines
This is the consolidated circular on incentives provided by our bank in passing of 'Prabodh', 'Praveen' and 'Pragya'
& ‘Parangat’ examinations as well as in attaining higher qualifications in Hindi like graduation, PG, M.Phil. and
Ph.D. and special contribution in the field of Hindi literature.
372/22 Change in Nodal Office for resolution of queries / complaints related to RTGS transactions
Payment Systems (RTGS) Recon Section, Reconciliation Wing, Head Office will be the new Nodal Office for
handling queries / complaints related to RTGS transaction
373/22 Blacklisting of NGO’s.
Rashtriya Mahila Kosh (RMK) a Society registered under the Societies Registration Act, 1860 set up under the
Ministry of Women and Child Development, Government of India, has been providing micro finance to poor
women through its partner NGOs since 1993.
RMK has recently blacklisted following 2 NGOs due to continuous defaults and has advised not to consider any
grant/assistance to the NGO’s-
1. Neajishpur Nabin Tapashili Sangha
2. Shanker Gramudyog Sewa Sansthan
374/22 Modification In Housing Loans Scheme Guidelines – Adding Back Depreciation To Income For Arriving Loan
Quantum
Depreciation can be added back to the total income selectively for arriving loan quantum under Housing Loan
scheme subject to the following conditions:
a. The facility will be confined to Businessmen, Professionals, Self-Employed (Who run the business/activity on
Proprietorship concern).
b. “Maximum cap of 20% for adding back depreciation and other income, if any (both put together) to add to
total income”.
c. Depreciation amount shall be ascertained on the basis of last - 2 Years ‘Audited Balance Sheet’ of the
Borrower. Depreciation to be added back to the net income shall be Average Depreciation during the last 2
Years OR the depreciation during the Current Year, Whichever is lower.
375/22 Introduction of “Canara Green Wheels” - new scheme to finance electric four wheeler vehicles
Considering growing business opportunity in Electric Vehicle (Four-wheeler) business, our bank has launched
“Canara Green Wheels” a new scheme for Financing Electric Four Wheeler Vehicle (4-Wheeler) including
agriculturists.
 Loan can be given at margin of 15% (upto Rs. 25 lac loan) and at 25% margin for loan above Rs. 25 lacs.
 Minimum income requirement- Rs.3.00 lakhs p.a. as per the latest income of Salaried/ Non-salaried class;
Agriculturist: Net Annual Income of applicant and/or co-applicant together should be a minimum of Rs.4.00
lakhs
 Repayment period- 84 months
376/22 Integration of M/s Maruti Suzuki Smart Finance (MSSF) portal in our lending automation processing system
(LAPS) module for digital processing and sanctioning of Maruti Suzuki four wheeler loans.
 Bank has executed Memorandum of Understanding (MoU) on Digital Financing Marketplace with M/s Maruti
Suzuki India Limited for integrating Maruti Suzuki Smart Finance Portal (MSSF) portal into our Lending
Automation Processing System (LAPS) for offering Maruti Suzuki four wheeler Finance to customers on
Digital platform.
 The Platform will be accessible by all prospective Maruti Suzuki Vehicle Customers & Maruti Dealers who
are interested in finding suitable financing options from Canara Bank.

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 Based on the customer data and the financing rules provided by our Bank, financing details will be made
available to the borrowers on the Platform. Customer can select their preferences to our bank and fill
application form and share documents (including Identity proof, address proof, bank statement, salary slips,
etc.).
 On proceeding with our Bank offer, the Platform will allow to finalize the offer, and will notify our Bank (that
have in-principle sanctioned a loan to the customer) on customer’s acceptance or rejection of the said
offer(s).
 Detailed SOP is provided in the circular. All Branches/RAHs/ROs/COs shall take note of the above integration
and make maximum usage of this facility for digital processing and sanctioning of Maruti Suzuki Four wheeler
loan.
377/22 Introduction of Digital Branch Management Planner (BMP) : FY 2022-2025
As a go green initiative the existing system of supplying the printed booklets of Branch Management Planner to
Branches/ Offices is dispensed with. Instead bank has introduced Digital Branch Management Planner for three
financial years from FY 2022-2025.
BMP is uploaded in SAS package and it is accessible to all the employees of the branch at following path-
SAS>>General>>DMS(Document Management system)>>Repository>>My Folders >>Branch Management
Planner
Branch Head to ensure updation of relevant data and make it available to the new incumbent.
378/22 Revised rules for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) w.e.f 01.06.2022
 PMJJBY offers Rs 2,00,000/- death cover at a nominal annual premium of Rs.436/- per annum.
 Individual account holders of the participating banks aged between 18 years (completed) and 50 years (age
nearer birthday) who give their consent to join / enable auto-debit, as per the above modality, will be
enrolled into the scheme.
 The scheme is offered / administered through M/s Canara HSBC OBC Life Insurance Co. Ltd. in our bank.
 Revised enrollment and claim forms are to be used for fresh enrollments and claim settlement respectively
w e f 01.06.2022.
 Enrollment fee-
 For enrolment in June, July and August – Full Annual Premium of Rs.436/- is payable.
 For enrolment in September, October, and November – pro rata premium of Rs. 342/- is payable
 For enrolment in December, January and February – pro rata premium of Rs. 228/- is payable.
 d) For enrolment in March, April and May – pro rata premium of Rs. 114/- is payable.
379/22 Revised rules for Pradhan Mantri Suraksha Bima Yojana (PMSBY) w.e.f 01.06.2022
 PMSBY is an Accident Insurance Scheme offering accidental death and disability cover for death or disability
on account of an accident.
 PMSBY offers Rs 2,00,000/- accidental death cover at a nominal annual premium of Rs 20/- as per guidelines.
 The scheme is offered / administered through The New India Assurance Co. Ltd. in our bank
 Revised enrollment and claim forms are to be used for fresh enrollments and claim settlement respectively
w e f 01.06.2022.
 Total cover of Rs. 2 lacs for accidental death and Total permanent disability and in case of partial disability
of one limb or one eye- coverage is Rs. 1 lacs.
380/22 Incentive Scheme for Capacity Building for Officers and Clerical Employees
To leverage the learning curve of the employees and to facilitate them for continuous professional development,
our bank has bought Incentive scheme for capacity building for our clerical & officer employees. Various Courses
from IIBF, NISM etc has been grouped into 3 categories, staff can choose out of the given list. Bank will provide
incentive of Rs. 6000/-, 10000/- & 15000/- for Group I, II & III courses respectively and also fee reimbursement
on successful completion of courses.
381/22 Foreign Contribution (Regulation) Act 2010 (FCRA) - Receipt of foreign contribution by
Individuals/NGOs/Organizations from foreign donors
Any foreign contribution (as defined in FCRA,2010) flowing from the following foreign donors to any
Individuals/NGOs/Voluntary organizations/associations in India should be brought to the notice of MHA.
 Operation Mobilization, US
 Dayspring International
 Dalit Freedom Network/Dignity Freedom Network, Canada
382/22 Rates of interest on rupee loans and advances (MCLR, RLLR, STRLLR and EBLR2) w.e.f. 07.06.2022
Latest ROIs are- MCLR (Six month)- 7.35%, MCLR (One year)- 7.40%, RLLR-7.30%, STRLLR- 4.40%, EBLR2- 4.40%
383/22 Interest Equalization Scheme (IES) on Pre and Post Shipment Rupee Export Credit
RBI now has given extension of IES benefit to beneficiaries for segments other than for which they have availed
of PLI benefits under any Production Linked Incentive (PLI) scheme of the Government w.e.f. 01.10.2021.
In this connection, Branches who wish to submit the revised claims for the period from 01/10/2021 to 31/03/22
on account of above, have to submit the revised claim to respective Circles in revised format as per Annexure II
on or before 08/06/22 in offline mode only.
384/22 Modification in processing/upfront charges for mudra Loans financed under ‘Shishu’ and ‘Kishore’ categories
Competent authority has permitted waiver of Processing/Upfront charges for Mudra Loans financed under
‘Shishu’ and ‘Kishore’ Categories w.e.f. 07.07.2022. Processing /upfront charges for Mudra loans under ‘Tarun’
shall continue as per the existing guidelines.
385/22 Standard operating procedure for viewing “Dashboard on Vidya lakshmi portal application” by RAHs for their
linked branches.

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In order to instigate proper monitoring mechanism of Vidya Lakshmi Portal application and to improve the Turn
Around Time (TAT), Bank has provided a dedicated Dashboard to RAHs for viewing “Vidya Lakshmi Applications”
for their linked branches.
386/22 Loans and advances against shares/debentures: revised list of companies
 Revised consolidated list of companies whose shares and debentures have been approved by the Bank, for
granting of loans/advances against pledge of shares/debentures.
 No fresh loans/advances shall be granted against securities held in materialized form.
 No fresh loans / advances shall be granted against securities which are not appearing in the approved list.
387/22 Preferential rate of interest on deposit of employees/ex-employees and dependents of deceased employee -
reiteration of guidelines
The circular details guidelines on preferential rate of interest to Employees / ex-employees of the bank.
The employee / employee should invariably be the first named depositor in order to be eligible for preferential
rate of interest and a declaration in NF-118 shall be submitted to the effect that the money deposited belongs
to him/her.
388/22 Introduction of new SB & CA Products by names Canara SB - CNA & Canara CA - CNA for opening accounts for
Public Financial Management System to all Central Sector Schemes.
 Ministry/ Department identifies a Central Nodal Agency (CNA) for implementing each Central Sector
Scheme. Each CNA will open Central Nodal Account for each Central Sector Scheme in a schedule
Commercial Bank CSS at State Level. Funds will be maintained at Central level in CNA Accounts.
 There will be zero balance subsidiary accounts for a scheme allocated with the drawing limits for the Sub-
Agencies (SAs)
 Subsidiary accounts will withdraw funds from CNA on real time basis for any payments to
beneficiaries/vendors.
 As per the said notification, a separate Bank Account shall be opened by the Central Nodal Agency (CNA) for
implementing each Central Sector Scheme.
 In order to provide the banking facility as per the proposed features for handling Central Sponsored Schemes
new Savings & Current Account products by names Canara SB – CNA Central Sector Scheme & Canara CA -
CNA Central Sector Scheme are designed.
 The Accounts are to be opened under the following Product Codes::
142 – Canara SB – CNA Central Sector Scheme.
1652 – Canara CA – CNA Central Sector Scheme.
All the branches / offices are requested to aggressively market and popularize these products to garner sizeable
Govt. CASA deposits.
389/22 Introduction of “Canara CA - Holding” - New CA Product for opening accounts of Implementing agencies for
payment of statutory deductions/ tax/duties/levies/fees/municipal charges etc.
The procedure for release of funds under the Centrally Sponsored Scheme (CSS) and monitoring utilization of
funds released – reg. payment of statutory deductions/ tax/duties/levies/fees/municipal charges etc. As per the
procedure a separate Bank Account, viz, “Holding Account” shall be opened by the Implementing Agencies for
holding the tax/statutory deductions, apart from the Zero Balance Subsidiary accounts opened under PFMS-CSS
scheme.
 Hence subject CA is Designed to open PFMS accounts of implementing agencies for payment of statutory
deductions/ tax/duties/levies/fees/municipal charges etc.
 Minimum Balance maintenance is waived.
 Debit Card, Passbook & Mobile Banking facility unavailable.
 Internet banking facility is available.
 Maximum time for which the funds can be held in the account shall be 14 days, after which the money shall
be credited back to the SNA account of the IA.
 Account Opening permitted only at specific branches selected and permitted by the Circle Head.
 Accounts to be opened under Product Code - 1653.
390/22 Release of Calendar of Balancing & Returns for the Financial Year 2022-23
Updated Calendar of Balancing & Returns (Due Dates of Balancing of Accounts & Returns, Statements, and
Reports) for the Financial Year 2022-23 is made available at Cannet>> Communications
391/22 Canara Bank Rajbhasha Akshay Yojana (RAY) and Canara Bank Rajbhasha Puraskar Yojana (RPY)
 Canara Bank 'Rajbhasha Akshay Yojana' was formulated in 1987 by our Bank to encourage Branches, Offices,
Sections and Wings to bring progress in the implementation of Official Language Hindi.
 Canara Bank ‘Rajbhasha Puraskar Yojana’ was designed to motivate our employees to use more and more
Hindi in their day to day official work. Under this scheme, Employees are awarded with Medal, Certificate of
Excellence and Cash Prizes.
 In accordance with above, entries are invited for Canara Bank Rajbhasha Akshay Yojana and Canara Bank
Rajbhasha Puraskar Yojana for the Year 2021-22. Last date of submission for entries is 15.07.2022.
392/22 Central Sector Scheme Of Interest Subsidy (CSIS) on education loans implemented by MOE, GOI – revised
guidelines (WEF 01.04.2022).
 Under the revised Scheme, entire interest accrued for loan amount up to Rs. 10.00 Lakhs during the
Moratorium period i.e. Course period plus one year is subsidized for the eligible education loan accounts.
 Students availing education loans for pursuing professional / technical courses only from National
Assessment and Accreditation Council(NAAC) accredited Institutions or professional / technical programmes
accredited by National Board of Accreditation (NBA), Institutions of National importance, Central Funded

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Technical institutions (CFTls) and Professional institutions/programmes approved by respective regulatory

body are eligible.
 Interest subsidy on education loan is provided for a maximum amount of Rs. 10 lakhs (Even sanctioned loan
amount in excess of Rs. 10 lakhs would qualify for interest subsidy up to Rs. 10 lakhs only).
 In CSIS scheme, no collateral security or third party guarantee is required for Education Loan sanctioned up
to Rs. 7.5 lakh. Branches to ensure that this part of the loan is covered for guarantee under Credit Guarantee
Fund Scheme for Education Loan (CGFSEL).
 The revised scheme shall be applicable from financial year 2022 – 23 onward.
 Branches have to note that the list of accredited/approved institutions/programmes will be subject to
changes every year.
393/22 Resuming Issuance of Master-Card Credit/ Debit / International Travel Prepaid Cards
 Now, Vide Press Release: 2022-2023/379, dated 16/06/2021, RBI has lifted the Business Restrictions
imposed on Master card Asia / Pacific Pte. Ltd with immediate effect for on-boarding on new customers, in
view of the satisfactory compliance demonstrated by Master card.
Hence bank has Resumed Fresh/ Renewal/ Reissue Issuance of Master Card Brand Cards Debit, Credit &
Prepaid), with effect from 16/06/22.
 MasterCard Brand cards are enabled in SAS package for fresh indent – both personalized & Non-personalized
cards, subject to the availability of Cards.
 Fresh Issuance of Canara International Travel Prepaid cards (ITPC) shall be resumed.
394/22 Capital Gain Bonds under Sec. 54EC of Income Tax Act
 Our Bank has been nominated as arranger for following four Bonds issued by the listed Public Sector
Enterprises of Government of India, issue Capital Gain Bonds by way of private placement every year.
a. M/s Rural Electrification Corporation Ltd (REC)
b. M/s National Highways Authority of India (NHAI)
c. M/s Indian Railway Finance Corporation (IRFC)
d. M/s Power Finance Corporation (PFC)
 The issue for the current FY 2022-23 was opened on 01/04/22 and closes on 31/03/2023.
 The Bonds are in the denomination of Rs. 10,000/- each with benefits under section 54EC of the Income Tax
Act, 1961. The rate of interest on Bond amount is 5.00% (annually) and lock in period is 5 years. The details
of Issue are enumerated in Annexure I of this Circular.
 Our Bank is one of the Arrangers and Collecting Bankers to the Issue. The Bank will earn a Commission of
0.12% of the Bond amount mobilized as Arranger. All Branches of our Bank are eligible to mobilize the bonds
directly from the general public
395/22 Celebration of 3rd “Crop Insurance Week” under Azaadi Ka Amrit Mahotsav-India@75 campaign during 1st –
7th July 2022
 “Crop Insurance Week” is to be celebrated under Azaadi Ka Amrit Mahotsav -India@75 campaign during 1st
– 7th July 2022 for Kharif season to create awareness and enhance the enrolment of farmers under the
scheme.
 To be held in all districts/areas being notified under the PMFBY/RWBCIS in the country with special focus on
Blocks/ Tehsils (mainly aspirational and tribal districts) where coverage of crop insurance is low.
396/22 Canara MSME CAP (credit against property) scheme -Modifications
Modifications in existing guidelines
 Margin for Non-Fund based facilities under the scheme is permitted in line with the extant guidelines
applicable to non-schematic MSME lending in this regard.
 Following modifications in guidelines pertaining to acceptable securities under the scheme, is permitted:
o Properties in the name of brother-in-law, sister-in-law, mother-in-law, father-in-law, daughter-in-law
and son-in-law may also be accepted as securities under the scheme provided they stand as guarantors.
o Vacant land may be accepted as security upto a maximum of 25% of the permitted security comfort (in
terms of value), subject to fulfilment of certain conditions and adherence to the applicable valuation
norms stipulated in this regard.
o In respect of properties which are less than one year old (i.e. latest execution of sale deed is done within
12 months), value of the property shall be taken as “sale deed value” or current “guideline value”
whichever is higher.
 Modifications in Delegation of Power guidelines is selected rural properties or vacant land is accepted as
security-
o Clearance from RO Head CAC to be obtained in case of proposals falling under power of Sanctioning
Authorities below RO Head CAC.
o In case of accounts falling under the powers of RO Head CAC and above upto Circle power accounts,
Circle Head CAC can permit for the same.
o In case of HO power accounts, the respective Sanctioning authority in whose power the proposal falls,
can permit the same.
397/22 “PM Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi)” scheme for Street vendors – Additional guidelines.
 Ministry of Housing and Urban affairs (MoHUA) has introduced 3rd tranche loans upto Rs. 50,000/- under
PM-SVANidhi scheme for a period of 3 year @ 7% ROI.
 Extension of the lending period under the scheme from March 2022 to December 2024.
 Extension of availability of Credit Guarantee and tenor of payment of Interest subsidy claims on all loans
under the scheme till March, 2028.

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 Interest subsidy claims now to be done half yearly basis.

 Credit Guarantee coverage norms of CGTMSE under the scheme is also modified.
 A revised LAF (Loan Application Form) has been adopted under the scheme by MoHUA, as per the revised
guidelines dated 01.06.2022.
398/22 Sovereign Gold Bond Scheme (SGB) 2022-23
 The Sovereign Gold Bonds to be issued as per the Calendar of Issuance notified by the Ministry of Finance
/ RBI is as under-

Sl No Tranche Date of Subscription Date of Issuance

1. 2022-23 Series I June 20-24, 2022 June 20-24, 2022

2. 2022-23 Series II August 22-26, 2022 August 22-26, 2022

 Minimum investment in the Bonds shall be 1 gram with a maximum limit of subscription of 4 Kg for
Individuals, 4 Kg for Hindu Undivided Family (HUF) and 20 Kg for Trusts and similar entities per fiscal year
(April-March) notified by the Government from time to time.
 The Issue Price of the Gold Bonds will be Rs 50/- per gram less than the nominal value to those investors
applying online and the payment against the application is made through Digital Mode;
 Issue Price of Sovereign Gold Bond for subsequent Series will be notified separately, when declared by the
Ministry of Finance/RBI.
 The Bonds shall bear Interest from the date of issue at the rate of 2.50 percent (fixed rate) per annum
payable semi-annually on the nominal value.
 The Interest on the Gold Bond shall be taxable as per the provisions of the IT Act, 1961. The Capital Gains
Tax arising on redemption of SGB to an Individual is exempted.
 Commission for distribution of the SGB shall be paid at 1% of the total subscription received by the
receiving offices and receiving offices shall share at least 50 percent of the commission so received with
the agents or sub agents for the business procured through them.
399/22 Sovereign Gold Bond Scheme 2022-23 Series I – Issue Price
 The Sovereign Gold Bond 2022-23 Series I – Open for Subscription from 20/06/22 to 24/06/22;
 All the Branches are authorised to open Sovereign Gold Bond;
 Reserve Bank of India has fixed the Issue Price at Rs. 5,091/- (Rupees Five Thousand and Ninety One only)
per gram of Gold;
 The Issue Price of the Gold Bond will be Rs 50/- per gram less than the nominal value to those Investors
applying Online and the payment against the application is made through Digital Mode.
400/22 Profit & loss account for the three months ending 30.06.2022 and balance sheet as at 30.06.2022.
401/22 RuPay Insurance Program FY 2022-23
 RuPay Insurance Program extended for the FY 2022-23 for RuPay PMJDY Debit Cards.
 RuPay Insurance Program FY 2022-23 for RuPay PMJDY Debit Cards will be continued with The New India
Assurance Company Ltd.
 RuPay Insurance Program extended for the FY 2022-23 for RuPay Premium Cards (Platinum/ Select)-Both
Debit and Credit cards.
 TATA AIG General Insurance Company Ltd. will be the Insurer for RuPay Insurance Program FY 2022-23 for
RuPay Premium cards which are higher variant of cards.
402/22 Revision in Interest Rates on Domestic & NRO Term Deposits w.e.f. 23.06.2022.
 Revision in Interest Rates on Domestic & NRO Term Deposits w.e.f. 23.06.2022. Maximum rate of interest
@5.75 % (general customer) for 5 year to 10 year period.
 New Term Deposit product – 333 days- @5.10%. Deposits shall be accepted till 30.09.2022 or extended as
per the decision of Management.
403/22 Revision in Interest Rates on Bulk NRE Term Deposits w.e.f. 23.06.2022
Revision in Interest Rates on NRE Term Deposits w.e.f. 23.06.2022 – Max ROI @ 5.75%
Senior Citizens are not eligible for additional interest rate for their NRE term deposits. Employees/Ex-
employees/Ex-employee Senior citizens are not eligible for preferential interest rate for NRE term deposits.
404/22 Introduction of Card-on-File Tokenisation (CoFT) Services and Implementation of Token Services
 As per the RBI circular, the following are to be implemented by the Bank:
o Extend the Tokenisation Framework to CoF Tokenisation (CoFT)
o Card issuers to offer card tokenisation services as Token Service Providers for the cards issued by /
affiliated to them
 With effect from July 1, 2022, no entity in the card transaction / payment chain, other than the card issuers
and / or card networks, shall store the actual card data. Any such data stored previously shall be purged.
 Tokenisation: Tokenisation refers to replacement of actual card details with an unique alternate code called
the “token”.
 Card-on-File Tokenisation (CoFT): CoFT refers to the Tokenisation of card details that are being stored at the
merchant / payment gateway systems. For the purpose of CoFT, The Token shall be unique for a combination
of card, token requestor and merchant.
 Branches to popularize this feature among customers to use this functionality for securing future card
transactions.

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405/22 Submission of instances of Conflict of Interest

Hitherto, all branches were submitting the Conflict of Interest (COI) certificate through ASCi packages on
Quarterly basis to the Credit review and monitoring and Recovery Section of the Concerned Regional Office and
Circles on consolidation submitting to Compliance Department, Compliance & RBS Wing.
To digitize the process, a new page is created in Self Service Module of HRM package as ‘Submission of Conflict
of Interest’.
Individual employees can access the declaration page as follows path: HRM package >>Self Service>>Conflict of
Interest Submission
For the current financial year, all employees (except subordinate cadre) have to submit the certificate of Conflict
of Interest before 31.07.2022.
406/22 -
407/22 Loan Recovery Policy 2022-23- Corrigendum
In point no. 7.19.2 “Advisory Committee” in loan recovery Policy- 2022-23 following modification has been done-
An Advisory Committee is formed consisting of two Retired High Court Judges, two former Bankers, who are not
below the Rank of ED of a Nationalized Bank or Deputy Managing Director of State Bank of India as its members
and one member from external agencies. Amongst two High Court Judges, the senior most will be the Chairman
of the committee.”
Thus in the proposed reconstituted SAC, there would be 5 members in all (earlier 3 members).
However, the Quorum shall be 2 members with mandatory presence of one of the retired Judge as Chairman of
the Committee.
408/22 Modification in eligibility criteria for appointing Direct Selling Agents(DSAs)
 Retired/Ex-employees of our Bank/Public Sector Banks, close relative of our Bank staff/Ex-employee /Retired
employee are not eligible for appointment of DSA.
 Further, new leads sourced by existing DSAs, who are our Ex-employees /Retired employees of any PSBs,
close relatives of Bank staff/ Ex- employees / Retired employee shall not be accepted / sanctioned.
409/22 Bank finance to government owned entities
The subject circular is reiteration of guidelines on Restrictions/Precautions for financing Infrastructure/Housing
Projects/Bridge Loans against receivables from Government.
Additionally on extending Bridge loans to Government owned entities following to be considered-
“Banks may extend bridge loans against the expected proceeds of Non-Convertible debentures, External
Commercial Borrowings, Global Depository receipts and/or funds in the nature of Foreign Direct Investments,
provided the banks are satisfied that the borrowing company has already made firm arrangements for raising
the aforesaid resources/ funds.”
410/22 -
411/22 Premature closure of Nitya Nidhi Deposit (NND) – Payment of Interest w.e.f. 01.07.2022
Revised rate of interest for prematurely closed deposits under NND Scheme for deposit closed less than 12
months – 0.10% and for NND Completed 12 months and less than 24 months- 0.25%. (Earlier both ROI was Nil)
Remaining ROI is as it is.
412/22 Revision in Rate of Interest for Savings Bank Deposits (Domestic / NRO / NRE) w.e.f. 29.06.2022
The slab wise revised rate of interest for Savings Bank Deposits (Domestic/NRE/NRO) w.e.f. 29.06.2022 will be
as under:
S. NO SLABS ROI (%)
1 For outstanding Balance of less than Rs. 50 Lakh 2.90
2 For outstanding Balance of Rs. 50 Lakh to less than Rs 100 Cr 2.90
3 For outstanding Balance of Rs. 100 Cr to less than Rs 300 Cr 3.10
4 For outstanding Balance of Rs. 300 Cr to less than Rs 500 Cr 3.10
5 For outstanding Balance of Rs 500 Cr to less than Rs 1000 Cr 3.40
6 For outstanding Balance of Rs 1000 Cr & above 3.55
413/22 Revised Definition of Micro, Small and Medium Enterprises – Mandatory obtention and updation of ‘Udyam
Registration Certificate (URC)’ details of MSMEs in CBS/LAPS.
 Udyam Registration Certificate (URC)’ details shall be obtained and updated mandatorily in CBS while
renewing existing limits and/or extending additional/fresh exposure to MSMEs on or after 01.07.2022.
 Branches/Offices shall also ensure incorporation of the ‘Udyam Registration Certificate (URC)’ details in the
‘Common Appraisal Memorandum’, while appraising MSME proposals envisaging such renewal of limits
and/or additional/fresh exposure.
 ‘Udyam Registration Certificate’ details shall be updated in CGTMSE portal also, wherever possible, while
submitting the application for Guarantee.
414/22 Extension of Concessional ROI of 25bps under Housing Loans (all variants) where score band as per Canara
Retail Grade - CRG-1>80 i.e., Low Risk, for further period from 01.07.2022 till 30.09.2022
Competent authority has permitted extension of concessional ROI of 25bps under Housing Loans where score
band as per Canara Retail Grade - CRG-1>80 i.e., Low Risk, for further period from 01.07.2022 till 30.09.2022, to
retain our existing customers & to bring new clients to our fold for sourcing/ garnering new business under
Housing Loan segment (all variants).
415/22 Timely filing of complaints with law enforcement agencies in fraud reported cases
As per the guidelines in vogue, Bank shall lodge the complaint with the law enforcement agencies immediately
on detection of fraud. There should ideally not be any delay in filing of the complaints with the law enforcement

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agencies since delays may result in the loss of relevant ‘relied upon’ documents, non-availability of witnesses,
absconding of borrowers and also the money trail getting cold in addition to asset stripping by the fraudulent
borrower.
Permission to file complaint with CBI should be obtained from the MD & CEO.
416/22 Conduct of Forensic Audit for investigation of accounts from Fraud angle
To avoid delay in taking decision on RFA Status / fraud Classification advised that banks shall ensure the
competency of the firms appointed for forensic audit assignments. Clear terms as well as timelines shall be
provided to the firms so appointed, indicating that the audit shall not remain inconclusive for a long time and
that the findings shall be clearly and conclusively brought out in the report submitted.
In case where forensic audit report submitted remain inconclusive or is delayed due to non-cooperation by the
borrower, the banks shall undertake their own internal investigation/assessment within 30 days. Further
decision on the fraud classification/RFA status shall be taken within 7 days of completion of such
investigation/assessment.
417/22 Merger of LAPS Group from Technology Operations Wing to Digital Banking Services Wing under Digital
Lending Cell
LAPS Group merged from Technology Operations Wing to Digital Banking Services Wing under Digital Lending
Cell.
Further now bank has introduced Service Tickets in CTS-Non CBS (New) for LAPS related issues which will allow
to have a better control on TAT for dispute resolution
418/22 Debit Card issuance Policy for the year 2022-23
 Canara Bank Debit Card has the combined feature of a Cash Card and a Card for payment of Goods &
Services at Merchant/ Commercial Establishments through POS or through internet.
 All the Canara Bank Debit Card transactions are subject to online debit, which means whenever there is
transaction, the status of the account is checked and authorization permitted only to the extent of
available limit.
 The Canara Bank Debit Card may be issued in association with Visa, MasterCard and National Payments
Corporation of India or any other card Payment Network Association.
 Two variants: A) Personalised Debit Card B) Non-personalised (Insta) Debit Card
 Facilities extended under Canara Debit Card:
 Cash withdrawal facilities at ATM/ POS/ Bharat QR up to a predefined daily limit.
 Purchase of merchandise and services with a daily limit by amount and count at Merchants through POS
/ Bharat QR and through e-commerce (online/ Internet).
 The validity of EMV chip cards shall coincide with the validity of EMV certification (present EMV
certification is valid till 31st December 2028).
 At the time of issue/ reissue all cards (physical and virtual) shall be enabled for use only at contact based
point of usage viz: ATMs & Point of Sale (PoS) devices within India.
 The cardholder will be provided with a record of the transactions after he/she has completed it,
immediately in the form of receipt or another form such as the bank statement/email/SMS.
 Card holders shall be provided with a facility for enabling card not present (domestic and International)
transactions, Card present (international) transaction and contactless transactions. Card holder shall be
provided with a facility to switch on/off and set/modify transaction limit (within the overall card limit)
for all types of transactions- domestic and international, at PoS/ ATM/ Online transactions/ Contactless
transactions. The facility shall be made available on a 24X7 basis through multiple channels- Mobile
application/ Internet Banking/ ATMs/ Branches. Cardholders are communicated through alerts/
information/ status etc. through SMS/ e-mail as and when there is any change in the status of the card.
The above shall not be mandatory for Prepaid Gift cards and cards used at Mass transit system
 Cash Withdrawal facilities:
 Canara Bank Debit Cardholders can make use of ATMs and POSEDC (Point of Sale Electronic Data
Capture) machines installed by our /other bank branches to draw cash up to ‘per day’ limit fixed by the
bank subject to available clear balance in the designated account.
 With the tie-up with Visa, MasterCard and NPCI, the cardholder can draw cash through our ATMs / ATMs
of other Banks which display the logo of respective payment networks
 Purchase of merchandise & services through POS/ Bharat QR/ Internet:
 Cardholder can use POSEDC machines/Bharat QR installed at all member establishments such as shops,
hospitals, restaurants, hotels, airlines, railways, travel agents, garages etc., displaying logo of Visa/
MasterCard/ RuPay, which provide online connectivity. The authorization may be based on PIN / OTP
input or QR Code of merchant by the cardholder or s, which is to be validated.
 Cardholder can also make use of the card on the internet for online purchase of goods and services. The
Cardholder shall register himself for 2nd factor authentication. The transaction shall be authorized on
validation of the second factor authorization besides other factors like card validity, Expiry date, CVV
Value etc.
 Cardholder can make use of following facilities through our ATMs
 Facility of Transfer of funds by our Bank Debit card Holder between his/ her own accounts –within Canara
Bank.
 Facility of Transfer of funds by our Bank Debit card Holder to Third Party Account –within Canara Bank.
 Facility of our Bank Credit Card Payment through ATM using our Bank Debit Card.
 Cardless cash withdrawal facility at ATM through mobile banking duly validated through OTP.

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 FEATURES OF CANARA BANK DEBIT CARD

 The Card will have Visa/MasterCard/RuPay logo
 The words VALID FROM & VALID THRU in capital letters will be pre-printed on a background color of the
card with “Month/ Year” legends over them. This will be in double digit format i.e. MM/YY.
 The legend ‘ELECTRONIC USE ONLY’ may or may not appear prominently on the front or back of the card,
as per specification by VISA/ MasterCard / NPCI
 Primary Account Number (PAN) [Card Number]
 The card number will be of 16 digits in indent printing.
 The first 6 digits represent Bank’s Identification Number (BIN).
 The next 9 digits will be the running sequence of the card under a particular BIN.The last digit is the
Checksum Digit number for determining the validation of the card number. Non-Personalized Cards are
generated without any dependency on branch DP code.
 The last digit is the Check Digit number.
 Card Validity period i.e., ‘valid from and valid thru’ will be printed below the Card Number. Card will be
valid till the last day of the month furnished under ‘valid thru’ on the card
 Cardholder’s Name appears in next line except in Non-personalised card
 The Card to have a chip embedded in it to facilitate EMV compliance.
 Dual interface contactless cards will have RFID antennae besides EMV CHIP & magnetic stripe for
acceptance at contact & contactless channels
 The Bank may also introduce “Virtual Debit Card” depending upon the business need, market / industry
trend or to meet customer needs as and when such capability is enabled.
 Bank has introduced National Common Mobility Card (NCMC) with offline & online functionality as per
the Government of India guidelines.
 Bank may issue other form factors in place of a plastic debit card such as wearables after obtaining
explicit consent from the customer. Form factors issued in place of a debit card shall be subject to the
specific and general guidelines applicable to debit cards.
 Banks shall submit a detailed report to the Department of Regulation, Reserve Bank of India, prior to the
issuance of any such form factors.
 Bank may provide Insurance Cover with the Debit Card. Nomination details available in the base account
to which the card is issued under CBS shall be taken for insurance claim.
 Layout of the Back of the Canara Bank Debit Card:
 Magnetic Stripe having encoded CVV (Card Verification Value), PVV (Pin Verification Value) which are the
security features
 Signature Panel
 The legend AUTHORISED SIGNATURE will appear printed in upper case, close to the signature panel
 Text message-cum-address of our Bank is printed bilingually.
 Eligibility
 Canara Bank Debit Card will only be issued to customers having Savings Bank/Current Accounts.
 Bank will not issue debit cards to cash credit/loan account holders. However, it will not preclude the bank
from linking the overdraft facility provided along with Pradhan Mantri Jan Dhan Yojana accounts with a
debit card.
 Canara Bank Debit Cards can be issued to:
1) Individual accounts
2) Joint Account with operation severally
3) Employees including those under suspension, ex-employees
4) P.A. Holder/ Holder of mandate
5) Non Resident Indian (NRI)
6) Minor students who are aged 10 years and above.
7) Illiterate customers
 Ineligible Accounts
1) Joint Accounts where operation condition is ‘Jointly’
2) Accounts of all minors except Minor Students who are aged 10 years & above.
3) Accounts under Garnishee/ attachment orders or which are subject to litigation/ dispute
4) Encumbered accounts
5) Overdraft accounts with inventory limits like Cash Credit Accounts and other Loan Accounts.
 Validity:
 The validity of EMV chip cards shall coincide with the validity of EMV certification (present EMV
certification is valid till 31st December 2028)
 The card is valid from the first day of the month of issue till the last day of the month of Expiry
 ROLES & RESPONSIBILITIES
 The Bank may issue Personalised/ Non-personalised (Insta) Debit Cards with different flavors like
Classic, Standard, Business Debit card, Mudra Debit Card, Platinum, Gold, Signature, Select, contactless,
National Common Mobility Card to suit to the different segments of the customers and also issue
multiple cards to one customer. At ‘CANDI’ branches Platinum Debit cards will be issued through kiosks.
 The Bank may issue additional RuPay Debit card to customers already having VISA/Master Debit Card to
facilitate insurance benefits attached to RuPay cards.

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 International Debit Cards are issued with EMV compliant Chip and PIN. These cards are valid for global
usage and will be issued only on specific request by the applicant, for International Usage.
 The Bank may also issue Virtual Debit Cards for instant account opening facility which will be enabled
only for e-Commerce transactions with Green PIN facility. Green PIN for such Card to be generated
through Net Banking / Mobile Banking as and when enabled, using OTP sent to registered mobile number
of such Card Holder. The bank may also issue of Virtual Debit Card free of charges, as additional card to
customers to facilitate promotion of e-commerce transactions / internet usage, bill payments etc
 Delivery of Cards:
 All undelivered return Personalized Debit Cards shall be delivered to the respective CPH mapped to the
customer’s branch.
 Personalized debit card with green pin facility will be dispatched directly to the customers address
available in CBS/dispatch address (duly validating the customer). Customer is again authenticated while
generating green pin through ATM/MB/IB/IVRS by way of OTP.
 Renewal of Canara Bank Debit Card:
 Auto renewal on expiry of cards shall be extended only for active cards i.e. cards used at least once for
financial transaction in the last 1 year. Branch to ensure that customer latest address with valid pin code
and mobile no. are updated in CBS one month prior to renewal of the debit card for smooth delivery of
cards to customers. SMS will be sent to the customers twice in this regard.
 Since renewals of personalized cards are automated, the branch should inform Digital Banking Services
Wing one month prior to the date of expiry of the validity period of the card duly mentioning, the valid
card number, in case the card is not to be renewed
 If the cardholder does not wish to renew their Canara Bank Debit Card, such account details should also
be informed to Digital Banking Services Wing for not renewing the Card through Branch.
 Hot listing/Replacement of Cards
 Hot listing is the process by which details of the Debit Card reported lost/stolen/cancelled are
invalidated.
 Hot listing prevents misuse of the card by person who comes into/is in possession of such cards.
 Hot listing of debit cards may be facilitated through various channels like Branch, Mobile Banking
(CANDI), Net Banking, e-mail, SMS, IVRS and Call centre.
 Bank will block a lost card immediately on being informed by the cardholder and formalities will be
followed within a reasonable period clearly defined in the policy.
 Destruction of Cards
 A Card once issued or hot-listed may have to be destroyed due to any one of the following reasons:
 Cards getting damaged.
 Cards already reported lost/stolen (already hot listed) having been traced but replacement Card already
issued
 Cards returned by the customers on account of closure of account or discontinuing the facility
 Personalised Debit cards remaining undelivered for more than 3 months are to be destroyed following
the guidelines of destruction of security items
 The destruction of the Card is to be done at the CPH/Branch.
 Dispute Redressal mechanism :
 In terms of Reserve Bank of India guidelines, the wrongful Debit in the customer’s account on account of
ATM failed transactions shall be reversed within T+5 days from the date of transaction. (T is the day of
transaction and refers to the calendar date) failing which a penalty of Rs.100/- for each day of delay shall
be credited to the customer's account along with the disputed amount.
 All disputes regarding ATM failed transactions shall be settled by the issuing bank and the acquiring bank
through NPCI only. No bilateral settlement arrangement outside the dispute resolution mechanism
available with NPCI is permissible.
 Reconciliation and complaint redressal related to all types of financial transactions with Debit Cards shall
be attended by the concerned section of Reconciliation Wing as defined in the functions of the wing.
 REPORTING STRUCTURE / REQUIREMENTS
 A monthly statistical report of Debit Cards is to be submitted to Reserve Bank of India
 Bank will submit such report as on last day of every month with details of Cards issued, usage in ATM/POS
number and amount of such transactions, on or before 7th of succeeding month.
 RISK ASSESMENT/ RISK MEASUREMENT / RISK MITIGATION
 Limit for Withdrawal:
 ATM cash withdrawal: ATM cash withdrawal: Any number of transactions with a per day per card limit
of Rs.40,000/- for Standard / Classic/Gold/Elite Cards and Rs.50,000/- for Platinum/ Business, Select &
Signature Cards
 Purchases at Merchant locations through POS/ Bharat QR / Internet: Any number of transactions per day
per card subject to a maximum of Rs.1,00,000/- for Standard / Classic/ Gold/ Elite Cards and
Rs.2,00,000/- for Platinum/ Business/ Select/ Signature Cards.
 Cash withdrawals through Point of Sale Machines: Any number of transactions with a per-day per card
limit of Rs.2000 in tier III to VI cities and Rs.1000/- in Tier I & II cities
 The cash withdrawal shall be in multiples of Rs. 100/- only.
 PERSONAL IDENTIFICATION NUMBER (PIN):
 Bank has also facilitated green pin generation facility through IVRS/MB/IB channels

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STRATEGIES FOR MEETING OBJECTIVES

 Co-branding of our Debit Cards:
 Our Bank may issue Debit Cards, its variants in association with Regional Rural Banks, educational
institutions, reputed companies, institutions, Clubs etc. The co-branded institutions may be banking,
non-banking entities, financial, educational institutions, Clubs, other institutions. However, while
entering into co-branding with banking entities, it should be ensured that there is no conflict of interest.
 The co-branded debit card will explicitly indicate that the card has been issued under a co-branding
arrangement. The co-branding partner shall not advertise/market the co-branded card as its own
product. In all marketing/advertising material, the name of the bank will be clearly shown.
 The co-branded card will prominently bear the branding of the Bank.
 PROVISIONS FOR EXEMPTION/ RATIFICATION OF PROCEDURE AND ITS DELEGATION
 Issuance of Canara Bank Debit Cards only on a case to case basis based on the permission of the circle
head can be considered in the following cases:
 Authorized person/s :
 Clubs/Associations (Regd./unregistered)
 Charitable and Religious institutions, Trusts
 Local Bodies
 Partnership firms
 Public and Private Ltd company
 Societies (Regd. or unregistered)
 Provident fund account etc., provided the operational condition is severally in case there is more than
one authorized person to operate the account
 The Executive Director shall be the competent authority for permitting Modifications /changes to Debit
card scheme/ features of the card which may be required keeping in view the Industry trend / change in
Network Association rules / regulatory guidelines / Bank’s business need.
 Compliance:
 All RuPay Domestic cards issued by our Bank shall be accepted at :
i) NETS Network in Singapore(PoSterminals)
ii) BC Card Network in South Korea (ATM, PoS and E-commerce)
iii) Mercury Payments Services Network in UAE (ATM, PoS and E-commerce).
iv) Royal Monetory Authority (RMA) of Bhutan for Merchant Locations and ATM. V
v) Network of Nepal SBI Bank Limited (NSBL), Nepal for PoS and ATM
 REGULATORY PRESCRIPTION
 All Cards, both new / renewed card, issued to customers have to be EMV Chip based cards only without
any exception.
 Bank may issue contactless Debit cards (Dual interface cards with RFID antennae) using Near Field
Communication technology (NFC) for facilitating our customers the benefit of the relaxation permitted
by Reserve Bank of India in the requirement of Additional factor Authentication (like PIN) for small value
card present transactions, presently up to Rs. 5,000/-.
 As per RBI directives on customer protection policy, Bank may block all electronic banking transactions
if mobile number is not registered with the Bank for SMS alerts. However withdrawals through ATM will
be permitted.
 RBI has relaxed the need for additional factor authentication (authentication by keying in OTP received
on Mobile phone) for ‘Card Not Present’ Transactions subject to following modifications:
1) Such payment authentication solution to be provided by authorized card networks like
Visa/MasterCard/NPCI.
2) Card Holder’s consent to be obtained.
3) Relaxation of additional factor authentication for Card Not Present Transaction has been revised
from Rs.2,000/- to Rs. 5,000/- only, per-transaction from 01.01.2021.
 The following variants of Canara Bank Debit card are issued to cater to the different segments of the
customers
1. Canara Bank Debit Card – Personalised – This is issued to the general customers of the Bank who have
opened Savings Bank, Current Account, Overdraft accounts with Canara Bank. This card will have the
name of the cardholder imprinted on the card.
2. Canara Bank Debit Card – Non Personalised – This Card is issued to the cardholder at the time of
opening the account to facilitate immediate usage of the Card. This card is a generic card, which will not
have the name of the card holder on it.
3. Canara Campus Debit Card – This Card is designed for the use of students studying in schools and
colleges. This card is issued in association with the Schools / Colleges, where the card is treated as an
identity card besides facilitating payment of fees etc. with the Card.
4. Canara Kisan Debit Card – This card is issued to borrowers under Kisan Credit Card Scheme, to
facilitate withdrawal of cash and purchase of inputs.
5. Canara Platinum/ Select Debit Cards – Premium Variants of the card for elite customers.
6. Canara RuPay Junior Debit Card – This card is personalized Debit Card, specially designed for issuing
in the name of minor students above the age of 10 years
 Domestic Usage and Global Usage:

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 Canara Institute of Bank Management, Manipal

 CANARA BANK DEBIT CARDS are issued for Domestic (within India) usage and Global usage. While Cards
with Global Usage are issued at the specific request of the Cardholder/applicant, the Cards with domestic
usage are issued by default. All Cards are EMV compliant Chip Cards which afford greater protection
against skimming. Global usage on the card is blocked by default and can be enabled through Mobile
Banking App/ Internet Banking or by visiting the base branch.
 Card Associations:
 Canara Bank Debit Cards are issued in association with M/s VISA, M/s MasterCard and M/s NPCI. The
Cards issued in association with Visa have VISA logo and the Cards issued in association with MasterCard
have MasterCard logo. The Cards issued in association with NPCI have the logo of RuPay.
 Common features of the variants of Canara Bank Debit Card:
DOMESTIC USAGE AT OUR BANK’S ATM AT POINT OF SALE TOTAL LIMIT PER DAY

Canara Bank Debit Card 40,000 1,00,000 1,40,000

- Classic/ Standard
Canara Bank Debit Card 50,000 2,00,000 2,50,000
– Platinum/ Select
Canara Campus Debit 40,000 1,00,000 Unlimited for 1,40,000
Card in Campus usage
Canara Kisan Debit Card 40,000 1,00,000 1,40,000

 Cash withdrawal from other Bank’s ATM is restricted to Rs.10,000/- per transaction.
 Canara Bank Debit Card provides facility to card holders for availing cash withdrawal from the Point of
Sale Terminals of identified MEs. The minimum amount of withdrawal will be Rs.100/- and thereafter in
multiples of Rs.100/- subject to maximum of Rs 1000/- per day per debit card in Tier I & II Cities and
Rs.2000/- in other centres. This facility is available to the cardholder whether he makes a purchase at the
selected Member Establishment or not.
 The cardholder’s account will be debited the following charges
Our Debit Cards used at our designated 1% of the transaction amount + Applicable
merchants taxes

Our Debit Cards used at other Banks’ 1% of the transaction amount + Applicable
merchants taxes

 Canara Rewards Scheme in Platinum Debit card variant

 One Reward Point [equivalent to Rs. 0.25] for every successful non-cash transaction of Rs. 200/- through
Platinum Debit cards.(Fraction of Rs. 200.00 will be excluded)
 All Platinum Debit card holders are auto enrolled under Canara Rewards programme and are required
to register through the website. www.canararewardz.com for activation and redemption of Reward
Points.
 Some of the services, offered at our ATMs are :
i. Cash withdrawal ii. Balance enquiry iii. Mini Statement iv. Request for cheque book v. Statement
request vi. PIN change vii. PIN Generation viii. Setting limit for Debit Card ix. Cardless Cash Withdrawal
 Hotlisting of Canara Bank Debit Cards:
 In the unfortunate event of the Card being misplaced or lost, the Cardholder is requested to call the
following number available 24/7 for hotlisting the Debit Card.
 Toll-free Telephone Number of Canara Bank Call Centre: 1800 425 0018.
 Card can also be hotlisted from Canara Bank Mobile Banking App or from Internet Banking.
 Terms and Conditions
 Usage of CBDC should be strictly in accordance with the Exchange Control Regulations and the
responsibility of adhering to FEM A guidelines while using debit card globally is on the cardholder. Any
violation of the above, attracts action under FEM A guidelines at the instance of Reserve Bank of India or
Canara Bank.
 The Billing under Debit Card will be done in Indian Rupee only.
 For all transactions in other currencies a mark-up fee of 3% is applicable.
 If the Card is lost/stolen, the cardholder shall immediately notify the branch (which has issued the
card)/nearest branch/Switch Room with full details, including the cardholder's name, the Card number
and its validity period as imprinted on the Card. If this information is given orally it must be confirmed in
writing within 7 days.
 A fee of Rs.150/- per card or such other amount as may be fixed by the Bank from time to time shall be
charged from the cardholder for hotlisting the lost/stolen card. This fee has to be paid compulsorily
whether the lost/stolen card is to be replaced or not
 DETAILS OF CHARGE LEVIED FOR USE OF THE CARD FOR CASH WITHDRAWALS
The following service charges will be levied for Canara Bank Debit Card used in Canara ATMs beyond
free transactions (other than for cash deposit transactions):

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Free Transactions in a For Customers Sr. Citizens Staff

Calendar month
(Financial and/or 6 8 10
NonFinancial)
Charges above free ₹20 + GST
transaction (Financial)
Charges above free ₹20 + GST
transaction
(Nonfinancial)
 For cash withdrawals at other Bank ATMs, the following service charges will be levied for the Remote
on-us (Our Card holders using other Bank ATMs) transactions beyond free transactions (other than for
cash deposit transactions):
Free Transactions in a Metro Non Metro
Calendar month (Financial
and/or NonFinancial) 3 5

Charges above free Present Charges per Present Charges per

transaction (Financial) transaction transaction

₹21 + GST ₹21 + GST

Charges above free ₹10 + GST ₹10 + GST

transaction (Non-Financial)

 Pricing structure:
SERVICE CHARGES RELATED TO DEBIT CARD ISSUANCE
Charge Type Classic/Standard Platinum Business Select

Enrolment Fee NIL NIL NIL NIL

Activation/Membership Fee NIL NIL NIL NIL

Annual Fee Rs. 125/- Rs.250/- Rs. 300/- Rs.1,000/

Hotlist/Duplicate card on Rs. 150/- Rs. 150/- Rs. 150/- Rs. 150/-
account of loss of card
Replacement card NIL Rs. 50/- Rs. 50/- Rs. 50/-

Debit card inactivity fee NIL NIL Rs 300/- NIL

Charges for SMS alerts Rs. 15/- per Rs. 15/- per Rs. 15/- per Rs. 15/- per
quarter quarter quarter quarter

First time Green Pin Free Free Free Free

Generation
Regeneration of Green Pin Rs. 50/- Rs. 50/- Rs. 50/- Rs. 50/-

419/22 Credit Card Policy for the year 2022-23

 Credit Card is a payment instrument. The Plastic Card is used to settle the payment between payer and
payee. Instead of settling mutual claims in cash, the plastic card is used to settle the claims.
 The Bank may issue Proprietary Cards, Cards in association with international associations like Visa,
MasterCard and national entities like National Payment Corporation of India (NPCI), etc. The segments
of customers may be Individuals, Corporate and other entities. The Bank may issue personalized Credit
Cards with different flavors like Classic, Standard, Gold, Platinum, Signature, World, Select etc. to suit to
the different segments of the customers. Bank may issue ‘add-on’ cards on request by the Principal
Cardholder with a maximum of 4 add on cards.
 Corporate Credit Card is a credit card that is issued to specific employee/s of a corporate employer
wherein the liability could rest with the corporate entity or the employee or jointly on both, as per the
product design features. 2.4. Unsolicited Credit Card is a credit card issued without a specific
written/digital request or an application therefore. Charge Card is a type of credit card where the user
has to pay the billed amount in full on due date after the billing cycle, and no rolling over of credit to the
next billing cycle is permitted.
 Independent income with a minimum of Rs.1 lakh gross per annum for Classic / Standard Cards & Rs. 2
Lac per annum for Gold Card. The independent income criteria for World Credit Card variant are Rs. 10.00
Lakhs Gross income per annum. For persons not having Income Proof, another variant of Credit Card

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 Canara Institute of Bank Management, Manipal

introduced i.e. Secured Credit Card against Security of Term Deposit (KD and FD) where the Credit Limit
is 75% of the ledger balance for KDR and 75% of the Principal Amount for FDR. Term Deposit maturity
should be at least one year at the time of sanction of credit card. Staff Members should have a minimum
annual gross income of Rs.60000/- and minimum net take home salary of not less than Rs.4000/- p.m.
 In case of NRIs, the cash withdrawal limit is fixed at Rs.50,000/- per month subject to 50 % of the Card
limit. If withdrawal is in other than INR currency, the limit will be equivalent of Rs.50,000/- value in that
currency. The card limit will be available to the main cardholder only. ATM cash withdrawal facility will
also not be extended to add-on cardholders.
 Customers rated High Risk/ low score, maximum limit to be sanctioned is Rs. 2 lakhs.
 Credit Card Limit: Individuals: The lower limit of all Individual Credit card variants is Rs. 25,000/- and
upper limit is Rs.25,00,000/- except classic/ standard card (Max limit Rs.3.00 Lakh).
Card Type Minimum Limit Maximum Limit

Classic/Standard Rs.25,000/- Rs. 3,00,00/-

Gold Credit Card Rs.25,000/- Rs.25,00,000/-

World Credit Card Rs.25,000/- Rs.25,00,000/-

Secured Credit Card Rs.25,000/- Rs.25,00,000/-

Platinum Credit Card Rs.50,000/- Rs.25,00,000/-

Select Credit Card Rs. 1,00,00/- Rs.25,00,000/-

 Credit Card Limit may be sanctioned based on pre-defined parameters up to Rs.1.00 lakh.
 Corporate credit cards to be issued together with add-on cards wherever required. At least one add on
card should be mandatory issued under Primary card. Need based limit in multiples of Rs.5,000 subject
to a minimum limit of Rs.50,000 and maximum of Rs.100 Lakhs. 99 Add on cards can be issued under
Main Card with a Minimum Card Limit of Rs. 25,000.
 Cash Advance limit is a sub limit under Credit Card limit. For individual Card holders, the Cash Advance
limit is up to 50% of the Credit Card Limit with a maximum of Rs.50,000/-. For Corporate Credit Cards
cash withdrawal limit is up to 50% Credit Card limit subject to maximum of Rs.5 Lakhs. For add on Card,
per Card maximum Cash withdrawal limit is Rs.25,000/.
 Delegation of Power for issue of Canara Credit Cards at Branches, Retail Asset Hubs (RAH), PCBs
Individuals Corporate Sanctioning Authority Reviewing Authority

Upto 30% of Gross Upto 30% of Gross GM/ CGM at Circle Wherever circle is headed by
Annual Income with Annual Income Offices CGM- GM sanction at Circle
maximum of with maximum of Office to be reviewed by
Rs.25.00 Lakhs Rs.100.00 Lakhs respective CGM, Circle
Office. In all other cases,
review shall be done by DBS
Wing Head.

Up to 30% of Gross Upto 30% of Gross DGM at RO / CO/ GM/ CGM at CO

Annual Income with Annual Income Branches
maximum of with maximum of
Rs.7.00 Lakhs Rs.15.00 Lakhs
Up to 30% of Gross Upto 30% of Gross AGM at RO / CO/ DGM at RO / CO/ Branches
Annual Income with Annual Income RAH/Branches
maximum of with maximum of
Rs.2.50 Lakhs Rs. 5.00 Lakhs
Up to 30% of Gross Upto 30% of Gross CM/DM at RO /CO/ AGM at RO / CO/
Annual Income with Annual Income RAH/Branches RAH/Branches
maximum of with maximum of
Rs.1.50 Lakhs Rs.3.00 Lakhs
Up to 30% of Gross N.A Branch Head of Small AGM/CM/DM at RO /CO/
Annual Income with Medium, Large RAH/Branches
maximum of Branches or Manager/
Rs.0.50 lakh Senior Manager in other
categories of branches
like RAH,VLB,
ELB,MCB,LCB

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 Canara Institute of Bank Management, Manipal

 Restriction in Credit Card Limit sanctioning powers to authorities up to Scale III : Sanctioning powers of
Credit Card Limit(fresh/enhancement) to Individuals up to Rs 50,000/- of Manager/Senior Manager in
charge of Small, Medium, Large & Very Large Branches are restricted to the following customer segments
only: a) To salaried class where salary is being credited in their account with our Bank for the last SIX
months. b) All Government & PSU employees (both State & Central Government) & Quasi Government
Employees who are confirmed in the service. c) To all pre approved customers published by Head Office,
time to time. d) Secured Credit Cards against the security of FD/KD (up to the Delegated powers) e) To
all Mortgage based loan borrowers where repayment is prompt and not reflected in SMA1/SMA2 during
the last six months. f) Customers where average balance in SB/Current Account for the last 12 months is
Rs 50,000/- & above .
 Failure on the part of the Bank to complete the process of closure within seven working days shall result
in a penalty of ₹500 per day of delay payable to the customer, till the closure of the account provided
there is no outstanding in the account. If no reply is received from the cardholder within a period of 30
days, the card account will be closed subject to payment of all dues by the cardholder.
 All Canara Credit Cards (except for corporate credit cards) will be eligible for reward/ loyalty points. Two
reward points will be earned on every Rs. 100 spent on credit cards (not applicable on fuel transactions
and cash withdrawals). Value of each reward point is Rs. 0.25.Validity of reward points is 3 years from
the date of accrual. For recovery of overdues - Branch representatives shall contact the customers only
between 10:00 hrs and 19:00 hrs.
 The power to write off the credit card dues is as follows –
Sanctioning Authority in Charge of Recovery of Credit Extend up to which credit card dues can
Card Dues of DBS Wing be written off

Committee of Section Head, Officer of Section and Up to Rs.10000/-

DM or AGM
Committee of Section Head, DM or AGM and DGM From Rs.10001 to 50,000/-

Committee of DM or AGM, DGM and GM Rs.50001/- onwards

 Credit Card Variant wise – Inactivity Fee:

Classic and Standard Credit Card - Rs. 100/- + Applicable GST
Gold Credit Card Rs. 150/- + Applicable GST
Platinum Credit Card Rs. 200/- + Applicable GST
Select and World Credit Card Rs. 300/- + Applicable GST
 Credit Card Variant wise - Threshold Limit for Turnover in the Card:
Classic and Standard Credit Card - Rs. 12,000/- or the sanctioned Credit Card limit, whichever is lower .
Gold Credit Card Rs. 25,000/- or the sanctioned Credit Card limit, whichever is lower .
Platinum Credit Card Rs. 50,000/- or the sanctioned Credit Card limit, whichever is lower .
Select and World Credit Card Rs. 1,00,000/- or the sanctioned Credit Card limit, whichever is lower .
 Enrollment fees for Corporate Card (Main Card) Rs. 250/-
Annual Fee for Visa Corporate Credit card Rs. 400/- per Add-on Card
Mark up in case of transaction in foreign currency Upto 3% of transaction amount
Transaction fee for cash withdrawal against your Credit account at our ATMs and branches –
Rs. 30/- per thousand or part thereof, with a minimum of Rs. 30/ per withdrawal.
At abroad 3% with a Min. of 5 US$
Charges in respect of notices/reminders sent to cardholders having overdues Rs. 50/- per notice
 In case of default, interest charges at the rate of 2.50% per month + applicable GST will be levied on
carried over liability, till clearance. In case of unsuccessful payment on the due date, a late payment fees
of Rs.250/- + applicable GST will be levied per billing cycle, as per prevailing fee structure.
 The Executive Director shall be the competent authority for permitting modifications/changes to credit
card scheme/features of the card which may be required keeping in view the Industry trend/change in
Net Work Association rules/regulatory guidelines /Bank’s business need.
 Bank may issue contactless cards (Dual interface cards with RFID antennae) using Near Field
Communication technology (NFC) for facilitating our customers the benefit of the relaxation permitted
by Reserve Bank of India in the requirement of Additional Factor Authentication (like PIN) for small value
card present transactions which has been revised from Rs. 2,000/- to Rs. 5,000/- only.
420/22 Modifications in CHM 07 screen in CBS
Modifications in OD Limit Master Maintenance – (CHM07)
 New field ‘Sanction date’ is introduced
 New “Limit Types” introduced in CHM07
 System level validation for maximum no of review cum extension and maximum period of extension enabled.
 After expiry of 180 days from the 'Original Limit End Date', the account will be automatically classified as
NPA due to reason 'Non-Renewal of Limit'.
 New field “Bank Name” introduced for taken over accounts
421/22 Automation of collection of term loan review charges W.E.F. 01.07.2022
 Collection of Term loan review charges has been automated with effect from 01.07.2022.

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 Canara Institute of Bank Management, Manipal

 New screen named CIX10 is introduced in CBS, which will display the customer wise exposure. Branches may
ascertain the customer wise exposure (including Term Loan exposure) using this screen.
 CBS will debit Term Loan review charges annually, after completion of one year from the date of first
disbursement, till the date of maturity of the accounts for exposure more than Rs. 1 crore.
 In respect of accounts which are NPA, the Term Loan charges will not be collected by the system
automatically, to be recovered manually.
 Existing functionalities of Service Charge waiver using BX202 option & refund using GSX03 option will be
applicable for Term Loan Review Charges also, however the same is to be use judiciously.
422/22 Guidelines on bank finance to factoring companies
In view of the RBI guidelines on Bank finance to Factoring companies, para 1.10.4 and 1.10.5 of HO Cir 357/22
dated 26.05.2022 (Master Policy on Credit Risk Management – Domestic Branches) is modified as under:
Para 1.10.4: Banks can extend financial assistance to support the factoring business of Factoring Companies,
which comply with the following criteria:
 The companies is carry out their business under the provisions of the Factoring Regulation Act, 2011 & derive
at least 50% of their income from factoring activity.
 The receivables purchased/ financed, irrespective of whether on 'with recourse' or 'without recourse' basis,
form at least 50% of the assets of the Factoring Company.
 The financial assistance extended by the Factoring Companies is secured by hypothecation or assignment of
receivables in their favour.
Para 1.10.5: Activities undertaken by NBFCs not Eligible for Bank Credit
 Bills discounted / rediscounted by NBFCs (other than factoring companies), except for rediscounting of bills
discounted by NBFCs arising from sale of commercial vehicles (including light commercial vehicles) and two
wheeler and three wheeler vehicles,
 Investments of NBFCs both of current and long-term nature, in any company / entity by way of shares,
debentures, etc. However, Stock Broking Companies may be provided need-based credit against shares and
debentures held by them as stock - in- trade.
 Unsecured loans / inter-corporate deposits by NBFCs to / in any company.

 All types of loans and advances by NBFCs to their subsidiaries, group companies / entities (other than
factoring companies).
 Finance to NBFCs for further lending to individuals for subscribing to Initial Public Offerings (IPOs) and for
purchase of shares from secondary market.
423/22 Credit Card Issuance
 Credit Cards should be issued after obtaining prescribed Credit Card Application form duly signed by the
customer.
 Customers should be provided with a Key Fact Statement along with the credit card application
containing the important aspects of the card such as rate of Interest, quantum of charges, among others.
In case of rejection of a credit card application, customers should be conveyed in writing the specific
reason/s which led to the rejection of the application
 The physical copy of MITC (Most Important Terms and Conditions), should be handed to the customers,
at the acceptance stage (welcome kit) and in important subsequent communications.
424/22 Guidelines on reporting of unusual Cyber Security Incidents
 Reporting of Unusual Cyber Security Incidents to [email protected] and [email protected]
 Bank is required to report these incidents to the Reserve Bank’s Cyber Security and IT Examination (CSITE)
Cell, CERT-In and other regulators within 2-6 hours of detection.
 Incidents that are not a cyber-attack type, but deficiencies in the Bank’s or Third-party service providers
(TPSPs) internal systems/applications/IT processes (including reconciliation exercise associated with
payment ecosystem) that are exploited by internal staff/third party/customers/others that, if results into
loss for the Bank and/or customers [cumulative loss exceeding ₹ 30 lakh].

425/22 EXECUTION OF MODIFIED SAFE DEPOSIT LOCKER AGREEMENT (NF285)

 In exceptional cases, Branch Heads in Scale IV & above can permit absorption of charges by the Bank for
execution of locker agreement.
 In exceptional cases, Branch Heads upto Scale III shall seek permission from RO Head for absorption of
charges by the Bank for execution of locker agreement.
426/22 Auto updation of CERSAI Security Interest ID in CBS and auto debit of requisite charge
 Auto updation of CERSAI Security Interest ID in CBS i.e BAM 73 and auto debit of requisite charges for
the accounts where registration of Security Interest of secured assets with CERSAI is done through SAS
package.
 As and when Security Interest ID will get generated from CERSAI for the asset registered with CERSAI
through SAS package, same will be auto updated in CBS FP: BAM 73 and requisite charge will get auto
debited to the concerned loan/OD Account of the customer.
 If the OD account does not have sufficient balance, the charges is to be collected manually.
427/22 ……
428/22 CONTINUATION OF WAIVER OF ALL SERVICE CHARGES FOR KCCS CROP/ANIMAL HUSBANDRY & FISHERIES
LOANS UP TO Rs. 3.00 LAKHS TO SMALL AND MARGINAL FARMERS TILL 31.03.2023.
429/22 Extension of cut off date for replacement of PPA with e PA in PFMS .

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430/22 CREDIT POLICY AND CREDIT RISK MANAGEMENT POLICY - DOMESTIC BRANCHES - FOR FY 2022-23 – UPDATED
TILL 30.06.2022
 The Regulatory Authorities have emphasized on the need to have separate policies for Operations and
Risk management aspects. Considering the same, the existing Master Policy on Credit Risk Management
for Domestic Branches is bifurcated into 2 policies as given below:
i) Credit Policy for Domestic branches
ii) Credit Risk Management Policy for Domestic branches
 Credit Policy is covered in two parts:
A. Credit Policy
B. Policy on Off Balance sheet Exposure
 Credit Risk Management policy is covered in two parts:
A. Policy Framework indicating the broad policy guidelines with reference to IRB guidelines and
consequent policy enhancement and its applicability.
B. Procedure document with details of roles, responsibilities and processes and the directions for
operational credit risk mitigation.
This is further sub divided into the following Chapters :
i. Credit Risk Management Policy
ii. Collateral Management Policy
431/22 Capital Investment Subsidy Scheme of Govt. of India (Central Sector Scheme) for Establishment of Agri-Clinics
& Agri-Business Centers (ACABC) – Continuation of the scheme for the period of six month, up to September
2022)
432/22 Introduction of Legal Entity Identifier (LEI) for Large Value Transactions in NEFT and RTGS
 LEI code mandatory for all NEFT and RTGS payments of Rs 50 crore & above undertaken by entities (non-
individuals).
 Mandatory to include Sender and Beneficiary LEI code while initiating outward NEFT & RTGS payments
of Rs 50 crore & above
 Sender & Beneficiary LEI code will be mandatory for processing inward NEFT & RTGS payments of Rs 50
crores & above.
 Applicable for both customer transactions and inter-bank transactions
 Governments or their Departments / Ministries are exempted from LEI requirement for NEFT & RTGS
payments
 LEI code & expiry date to be captured in CIM17
 The Legal Entity Identifier (LEI) is a 20-digit number used to uniquely identify parties to financial
transactions worldwide
 LEI code has a validity period of one year & requires annual renewal
 Entities can obtain LEI from any of the Local Operating Units (LOUs) accredited by the Global Legal Entity
Identifier Foundation (GLEIF), the body tasked to support the implementation and use of LEI. In India, LEI
can be obtained from Legal Entity Identifier India Ltd (LEIL) (https://www.ccilindia-lei.co.in), which is also
recognized as an issuer of LEI by the Reserve Bank of India
433/22 MODIFICATION IN CANARA BUDGET - RETAIL LENDING SCHEME GUIDELINES
 CGM/GM-CO-CAC and above authorities can sanction 15 months gross salary subject to maximum of
Rs.15.00 lakhs
434/22 DISCONTINUATION OF HOUSING LOAN TO CORPORATES.
435/22 Disbursement of MSME Term Loans – Reiteration of existing guidelines
436/22 Automation of collection of Commitment Charges w.e.f. 01.07.2022
 Maintenance of disbursement schedule in LNX21 (Commitment Fees Disbursement Schedule Details) is
mandatory for term loans where the aggregate exposure of the customer is (including current
disbursement) is more than Rs. 10 crores.
437/22 RATES OF INTEREST ON RUPEE LOANS AND ADVANCES (MCLR, RLLR, STRLLR, EBLR2, Base Rate and BPLR) w.e.f.
07.07.2022
438/22 ........
439/22 “Krishi Ujjwal”-Fresh Core Agriculture Term loan disbursement Campaign- September 2022 from 01.07.2022 to
30.09.2022.
440/22 Padho Pardesh Scheme of Interest Subsidy on Education Loans for Overseas Studies for the students belonging
to the Minority Communities – Opening of SAS package for submitting claims for June 2022 Quarter (FY 2022-
23)
 Ministry of Minority Affairs, Government of India has permitted for submission of interest subsidy claims
under the Padho Pardesh Scheme for the Quarter ended June 2022 pertaining to FY 2022-23
 As per the Scheme Guidelines, students pertaining to National Minority category (Christian, Muslim, Sikh,
Jain, Buddhist & Parsi) enrolled for Post Graduate Courses, M. PHIL& Ph.D. only are eligible for the
benefits under the scheme.
441/22 Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies for Other
Backward Classes (OBCs) & Economically Backward Classes(EBCs) – Opening of SAS Portal for submission of
claims for June 2022 Quarter (FY 2022-23).
 Ministry of Social Justice & Empowerment, Government of India, has communicated opening of Web
Portal for submission of June 2022 Quarter claims of FY 2022-23.

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 As per the Scheme Guidelines, the students enrolled for Post Graduate Courses, M. PHIL & Ph.D. only are
eligible.
 Other Backward Classes (OBC): Income criteria from 01.04.2021 (per annum) Rs.8.00 lakhs
 Economically Backward Classes (EBC) Income criteria from 01.04.2021 (per annum) Rs.5.00 lakhs.
442/22 NEW EDUCATION LOAN SCHEME FOR PURSUING MASTER’S DEGREE IN ABROAD FROM SELECT TOP RANKING
UNIVERSITIES OF WORLD
 Scheme: Educational loan scheme for abroad studies from select top ranking Universities
 Eligibility:
Student of Indian National holding valid passport.
Student should have secured admission from the select institution.
Student with *minimum score in SAT, ACT, GMAT & GRE.
*The Minimum competitive exam scores are stipulated as below, SAT- 1250 & above. ACT- 26 & above.
GMAT GRE-300 & above. GMAT-650 & above.
 Enrolled Premier Institutes: Top 50 ranked universities in World
 Course eligible: Master Degree under STEM (Science, Technical, Engineering and Management) courses.
 Expenses considered : 100% finance on Tuition fees, Living expenses, passage money, Medical
insurance, GIC, Travel expenses
 Quantum of finance: Above Rs.7.50 lakhs.
Collateral Coverage Eligible loan quantum
100% & above Min 7.50 lakh, Max no cap (as per Project Cost)
Less than 100%. Max- Rs.100 Lakh

 Credit Risk: Two CICs of Borrower & Co borrowers. Borrowers up to CS:3 moderate risk only to be
considered
 Margin: 10% of Loan amount. Margin may be brought in year on year basis as and when disbursements
are made on a pro rata basis
 Moratorium Period : Course period + 1 year, in case of student secured job immediately after completion
of course then repayment may be started earlier.
 Processing charge
Collateral security coverage Applicable Processing Charge
100% & above 0.50% of sanctioned limit Max-Rs.10,000
Less than 100 % 0.50% of sanctioned limit Max-Rs.20,000.

 Insurance: Life cover and term insurance can be extended to both student & Coapplicant. Insurance
premium may be included along with project cost.
 Collateral Security linked to Delegation of Powers & applicable Rate of Interest.
 Collateral Security shall be in the form of Residential / Commercial Land & Building.
 RAH head & above authorities up to their delegated powers are permitted to sanction the Loans. No
powers are vested with branches.
Delegation of powers* Collateral security coverage. Rate of Interest
RAH head 100% & above RLLR+1.60%
Circle head –CAC 75% & above (less than 100%). RLLR + 1.85 %
CGM/GM-HO-CAC 50% & above (less than 75%). RLLR + 2.10 %
443/22 Interest rate on NRE term deposits revised w.e.f. 11.07.2022.
444/22 Change in Nodal Office for resolution of NEFT payment related queries / customer grievances
 The NEFT reconciliation process has been taken over by Reconciliation Wing, Head Office and hence in
addition to RTGS, resolution of queries and complaints raised by branches / offices relating to NEFT
transactions will also be addressed by Reconciliation Wing.
445/22 ------
446/22 Canara Vidya Jyothi Scheme- A Corporate Social Responsibility (CSR) Initiatives- Extension of scheme for the
Academic Year 2022-23
 Canara Vidya Jyothi Scheme, to provide Scholarship to meritorious SC/ST Girl Students has been
extended for the academic year 2022-23.
 The Scheme shall be implemented by our Rural, Semi Urban and Urban Branches.
 Each branch to extend Scholarship to Six girl students from SC/ST communities studying in
Government/Govt. aided Schools in their command area.
 Scholarship to be disbursed before 31.03.2023.
 Amount of Scholarship is Rs.2500/- per student for students of class 5th to 7th and Rs. 5000/- per
student for students of class 8th to 10th.
447/22 Introduction of Vahan portal in SAS Module for online Addition, Continuation and Termination of Vehicle Loan
Hypothecation to Parivahan Sewa Portal (Ministry Of Road Transport & Highways, Government Of India) for
Delhi and Kerala States.
 Government of NCT, Delhi and Government of Kerala have implemented digital Addition, Continuation
and Termination of Vehicle Loan Hypothecation details sanctioned and disbursed at various Banks/NBFCs
in their states.
 The respective State Governments have directed to integrate the Banks/NBFCs software with Parivahan
Sewa portal for digital sharing of Vehicle loan details.

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 The “Vahan Portal” is developed and presently enabled for Delhi and Kerala States in SAS Module for
online sharing of Vehicle Loan Hypothecation details for the below functionalities:
1. Entry of Hypothecation during new registration
2. Continuation of Hypothecation during transfer of ownership
3. Termination of Hypothecation on Loan Closure.
448/22 Observance of NOBOL (Nationwide One Branch One Loan) Campaign under Agriculture Infrastructure Fund
(AIF) Scheme from 15th July to 14th Aug,2022
449/22 COVERAGE OF ELIGIBLE EDUCATION/SKILL LOANS SANCTIONED UNDER CGFSEL & CGFSSD FOR JUNE 2022
QUARTER
 All Education Loans sanctioned up to a limit of Rs.7.50 lakhs without any collateral security/third party
guarantee are eligible for coverage under Credit Guarantee Fund Scheme for Education Loan (CGFSEL).
 Skill Loans sanctioned up to a limit of Rs.1.50 lakhs without any collateral security/third party guarantee
are eligible for coverage under Credit Guarantee Fund Scheme for Skill Development Loan
450/22 Section 194R- TDS on Benefit or Perquisite in Respect of Business or Profession (Non-Salary Perquisites).
 A new Section 194R of the Income Tax Act, 1961 was introduced by the Finance Act, 2022
and is effective from 01-07-2022. The Section 194R mandates deduction of tax at source,
by any person (resident or non-resident), providing any benefit or perquisite, whether
convertible into money or not, exceeding Rs.20,000/- in value in a Financial Year, to a
resident, arising from the carrying out of any business or exercise of any profession by such
resident recipient.
 10% of the value or aggregate of value of such benefit or perquisite
 If PAN not available 20%
 Non Applicability: 194R is not applicable in case of benefit/ perquisite provided to Government Entity
and to the employees of the Bank
 Due date for remittance of tax
451/22 Revision in Interest Rates on Bulk Domestic & NRO Term Deposits w.e.f. 16.07.2022.
452/22 Revision in Interest Rates on Bulk NRE Term Deposits w.e.f. 16.07.2022
453/22 Housing Loan-Prevention of Frauds – DO’s & DONT’s
454/22 REPHASEMENT/RESTRUCTURING/RESCHEDULING OF ACCOUNTS – ADVISORY TO ALL THE BRANCHES, ROs
AND COs
455/22 HAR GHAR TIRANGA (HGT) – AZADI KA AMRIT MAHOTSAV – 13th to 15th August 2022
456/22 Introduction of Simplified Kisan Credit Card Scheme in Lending Automation Processing System (LAPS).
457/22 Master Circular- Deendayal Antyodaya Yojna-National Rural Livelihood Mission(DAY-NRLM)
 DAY-NRLM promotes affinity-based women Self Help Groups (SHGs). However, only in case of groups to
be formed with persons with disabilities and other special categories like elders and transgenders DAY-
NRLM may have both men and women in the Self-Help Groups. Women SHGs under DAY-NRLM consist
of 10-20 members. In case of special SHGs i.e. groups in the difficult areas, groups with disabled persons,
and groups formed in remote tribal areas, this number may be a minimum of 5 members. Supports
₹10,000 to ₹15,000 per SHG to strengthen their institutional and financial management capacity and
build a good credit history within the group. SHGs in existence for a minimum period of 3/6 months
 In case of Cash Credit Limit , banks are advised to sanction a minimum loan of ₹6 lakh to each eligible
SHG for a period of 3 years with a yearly drawing power (DP). The drawing power may be enhanced
annually based on the repayment performance of the SHG. The drawing power may be calculated as
follows: a) DP for the first year: 6 times of the existing corpus or minimum of ₹1.5 lakhs, whichever is
higher. b) DP for the second year: 8 times of the corpus at the time of review/enhancement or minimum
of ₹3 lakhs, whichever is higher. c) DP for the third year: Minimum of ₹6 lakh based on the Micro Credit
Plan (MCP) prepared by SHG and appraised by the federations/support agency and the previous credit
history. d) DP for the fourth year onwards: Above ₹6 lakhs, based on the MCP prepared by SHG and
appraised by the federations/support agency and the previous credit history.
 In case of Term Loan a) First dose: 6 times of the existing corpus or minimum of ₹1.5 lakh, whichever is
higher b) Second dose: 8 times of the existing corpus or minimum of ₹3 lakh, whichever is higher c) Third
dose: Minimum of ₹6 lakh, based on the MCP prepared by the SHGs and appraised by the
federations/support agency and the previous credit history. d) Fourth dose onwards: Above ₹6 lakh,
based on the MCP prepared by the SHGs and appraised by the federations/support agency and the
previous credit history.
 Loans up to ₹10 lakh to individual members of select matured well performing SHGs. One woman in
every SHG under DAY-NRLM may be provided a loan up to ₹1 lakh under the MUDRA Scheme. Banks are
advised to provide minimum OD facility of ₹5000 to every woman SHG member having PMJDY account.
 In order to facilitate use of loans for augmenting livelihoods of SHG members, at least 50% of loans above
₹1 lakh, 75% of loans above ₹4 lakh and at least 85% of loans above ₹6 lakh should be used primarily for
income generating productive purposes.
 Repayment schedule for Term Loans may be as follows: a) The first dose of loan may be repaid in 24-36
months in monthly/quarterly instalments. b) The second dose of loan may be repaid in 36-48 months in
monthly/quarterly instalments. c) The third dose of loan may be repaid in 48-60 months based on the
cash flow in monthly/quarterly instalments. d) From the fourth dose onwards loans may be repaid
between 60-84 months based on the cash flow in monthly/quarterly installments.

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 For loans to SHGs up to ₹10.00 lakh, no collateral and no margin will be obtained. No lien should be
marked against savings bank accounts of SHGs and no deposits should be insisted upon while sanctioning
loans. For loans to SHGs above ₹10 lakh and up to ₹20 lakh, no collateral should be obtained, and no lien
should be marked against savings bank account of SHGs. However, the entire loan (irrespective of the
loan outstanding, even if it subsequently goes below ₹10 lakh) would be eligible for coverage under
Credit Guarantee Fund for Micro Units (CGFMU). (iii) For loan to SHGs above ₹10 lakh and up to ₹20 lakh,
a margin not exceeding 10% of the loan amount exceeding ₹10 lakh may be obtained as per the bank’s
approved loan policy.
 DAY-NRLM would ensure adequate coverage of vulnerable sections of the society such that 50% of the
beneficiaries are SC/STs, 15% are minorities and 3% are persons with disability, while keeping in view the
ultimate target of 100% coverage of all households under the automatically included criteria and
households with at least one deprivation criterion as per Socio-Economic and Caste Census (SECC).
 DAY-NRLM is a Centrally Sponsored Scheme and the financing of the programme would be shared
between the Centre and the States in the ratio of 60:40 (90:10 in case of North Eastern States including
Sikkim; completely from the Centre in case of UTs).
 For loans up to ₹3 lakhs under the scheme, banks will extend credit at a concessional interest rate of 7%
per annum. For outstanding credit balance upto ₹3 lakh, banks will be subvented at a uniform rate of
4.5% per annum during FY 2022-23. For loans above ₹3 lakhs and up to ₹5 lakh under the scheme, banks
will extend credit at interest rate equivalent to their 1 year-MCLR or any other external benchmark based
lending rate or 10% per annum, whichever is lower. For outstanding credit balance above ₹3 lakhs and
up to ₹5 lakh, banks will be subvented at a uniform rate of 5% per annum during FY 2022-23.
 In order to avail the interest subvention on credit upto ₹3 lakh extended to women SHGs under DAY-
NRLM @7% as well as on credit above ₹3 lakh and upto ₹5 lakh extended to SHGs, all banks are required
to submit claim certificates on quarterly basis to the Nodal Bank.
458/22 Routing of all Credit linked interest subsidy (CSIS, ACSISEBCOBC, Padho Pardesh) eligible Educational loan
application through Jansamarth Portal
 Jansmarth portal, one-stop digital portal linking all Government sponsored credit linked Subsidy
schemes
 Routing of all Credit linked interest subsidy (CSIS, ACSISEBCOBC, Padho Pardesh) eligible Educational
loan application through Jansamarth Portal
 Jansamarth Portal has designed with business rule engine integrated with UIDAI, CBDT, Credit Bureau
for digital verification and to provide in principle based on the parameters set by Banks/FIs.
 The status description of Jansamarth portal are,
i. HOLD- application which are marked hold for need for information/documents.
ii. Sanction- application completed and approved sanctions.
iii. Disbursement-date and amount of disbursement has to be updated.
iv. Rejected- RAHs will forward the application “Rejection recommended to NHA” to AGM-RO CAC and
above. Rejection Status will be authorized in “AGM-RO-CAC-Convener and above template only at
ROs/Cos.
 Sanction should be conveyed within 7 days from the receipt of proposal as per extant guidelines.
 For Rejection of application, the proposal should be placed to NHA i.e. AGM-RO-CAC and above with
valid reasons for rejection.
 Once the proposal is rejected, the subject applicant has to be kept 60 days under cooling period for
applying fresh to Bank/FIs, while rejecting the proposal.
 Jansamarth portal. “www.jansamarth.in/home/canarabank”
459/22 Routing of payments (partial or full) in respect of One Time Settlement (OTS) through assigned GL 270101350
: SUSPENSE – OTS DOWN PAYMENT
460/22 OBSERVING AUGUST 2022 AS “SELF HELP GROUP (SHG) CREDIT LINKAGE MONTH”.
461/22 ENHANCEMENT IN RENTAL REIMBURSEMENT FOR QUARTERS TO OFFICER EMPLOYEES IN SCALE I TO VIII
462/22 REIMBURSEMENT OF EXPENSES TOWARDS SHIFTING OF OWN CAR BY LORRY/CONTAINER OVER AND ABOVE
THE FREIGHT CHARGES ENTITLEMENT OF THE OFFICER EMPLOYEES
463/22 Reiteration of guidelines on Nitya Nidhi Deposit (NND)
 Uploading collections of Nitya Nidhi Deposit (63 months) on a daily basis.
 All NND Agents to mandatorily use Pigmy Hand held machines for doing their daily collections.
 Collections made by the NND Agent are to be uploaded in the Pigmy module on the same day
 All existing Security Deposits maintained by branches viz. Pigmy Agent’s Security Deposit and NND
Agent’s Deposits shall be converted to KDR for a period of 5 years with existing
464/22 Appointment of Director
 The following persons have been elected as Shareholder Directors on the Board of our Bank, with
effect from 27.07.2022.
 Shri Bimal Prasad Sharma
 Ms Abha Singh Yaduvanshi
465/22 HAR GHAR TIRANGA (HGT) – AZADI KA AMRIT MAHOTSAV – 13th to 15th August 2022 – Additional
Guidelines.
466/22 MODIFICATION IN THE PROCEDURE FOR HANDLING COMPLAINTS ON IMPS/RTGS/NEFT TRANSACTIONS
THROUGH CCR PACKAGE
467/22 MODIFICATIONS IN GUIDELINES FOR HOUSING LOAN TO EMPLOYEES

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 The competent authority has permitted the following modifications in the scheme guidelines.
Employee Cadre Amount (in lakhs)
Sub-staff 45.00
Clerk 60.00
Scale II 80.00
Scale III 85.00
Scale VIII 130.00
 Quantum for Repairs & Renovation (within the overall entitlement) – 20% of the Employees’ Housing
loan entitlement
Employee Cadre Amount (in lakhs)
Sub-staff 9.00
Clerk 12.00
Scale I 15.00
Scale II 16.00
Scale III 17.00
Scale IV 20.00
Scale V 20.00
Scale VI 25.00
Scale VII 25.00
Scale VIII 26.00
 As NTH of 30% is to be maintained throughout the tenure of the EHL, the same shall be ensured by the
authority permitting the continuation of HL liability after retirement also.
 At the time of retirement, wherever continuation of EHL liability is permitted, for the purpose of arriving
NTH at 30%, income* of spouse / major children shall be taken into account subject to their joining as
coborrowers.
468/22 PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP) – Continuation of the scheme over
the 15th Finance commission cycle i.e. for the period of five years from 2021-22 to 2025-26 along with
certain modifications in the existing scheme guidelines.
 PMEGP scheme has been continued over the 15th Finance commission cycle i.e. for the period of five
years 2021-22 to 2025-26.
 Cost of eligible projects under the scheme has been increased upto Rs. 50 lakhs in respect of
manufacturing activities and Rs. 20 lakhs in respect of Service/ business activities for all categories of
eligible borrowers.
 Irrespective of the score obtained in Scoring Sheet, loans under the scheme shall be considered for
borrowers rated upto Moderate Risk only.
 Applicant’s Aadhar Number has been made mandatory under the scheme.
 Applicants who have already undergone training of at least 10 days (for offline mode)/ 60 hours (for
online) under Entrepreneurship Development Programme (EDP)/ Skill Development Programme (SDP)/
Entrepreneurship cum Skill Development Programme (ESDP) or Vocational Training need not undergo
EDP training again.
469/22 Introduction of a New Product Code-2000 For Opening Of MSME Working Capital Limits (OD/OCC) in
CBS/LAPS.
470/22 Black listed NGO
471/22 Merchant Onboarding & Digital transactions under Incentive Scheme II Program - POS, BHIM QR & BAP from
01.08.2022 to 30.09.2022.
472/22 DISPOSAL OF E-WASTE FROM BRANCHES/OFFICES
473/22 ------
474/22 ------
475/22 Premature Redemption under Sovereign Gold Bond (SGB) Scheme
476/22 E-Stamping Facility – Reiteration of Guidelines
 E-Stamping is a computer based application and secured way of paying Non-Judicial Stamp Duty to the
State Government. The process of embossing the value of stamp on special paper is called "E-
Stamping" and is a very good source of Non-Interest Income to the Bank by way of commission on
sale/stamping.
 The E-Stamping system replaces the existing mode of physical issue of stamp paper by the State
Government and its benefits are:
i. e-Stamp Certificate can be generated within minutes;
ii. e-Stamp Certificate generated is secure and tamper proof;
iii. e-Stamp Certificate generated has a Unique Identification Number (UIN) and its authenticity can be
checked on www.shcilestamp.com
 The Stock Holding Corporation of India (SHCIL) has been given the mandate by Govt. of India to act as a
Central Record Keeping Agency for e-Stamping and will provide required services to the nominated
branches by coordinating with respective State Governments, in view of the fact that Stamp Duty
collection is a State subject.

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 Bank is entitled to receive commission from SHCIL at the rate of 0.12 to 0.15 percent on the Turn Over
collected for e-Stamping on a monthly basis, based on the rates fixed by the respective State
Governments.
 Apart from above commission, Branches are eligible to collect Service Charges + GST@18% at
applicable rates which may vary from State to State for providing e-Stamping services and to be
credited to Commission IGL 320020914 .
477/22 Guidelines on concessional pricing of business loans to MSMEs accredited with ZED (Zero Defect Zero Effect)
Certification of Ministry of MSME
 ZED is an extensive drive of the Government of India to promote Zero Defect Zero Effect practices
among MSMEs.
 All MSMEs registered with the UDYAM registration portal (of the MoMSME) will be eligible to
participate in MSME Sustainable (ZED) Certification and avail related benefits/incentives.
 The financial support, incentives, benefits & other provisions contained in the scheme here in will be
valid till March 31, 2026.
 Quality Council of India (QCI), an autonomous body setup by Ministry of Commerce & Industry, Govt. of
India has been appointed as an implementing agency for facilitating, implementation, co-ordination
and monitoring of the Scheme.
 Project Monitoring and Advisory Committee (PMAC) set up in the O/o DC (MSME) is nominated under
the Scheme to look after the planning, screening / identification of interventions / projects and such
other functions as may be necessary to ensure effective implementation of the scheme.
 MSME Sustainable (ZED) Certification can be attained by eligible MSMEs in THREE Levels after
registering and taking the ZED Pledge:
a). Certification Level 1: BRONZE
b). Certification Level 2: SILVER
c). Certification Level 3: GOLD
 Bank has adopted the following benefits/incentives to ZED certified MSMEs under the revamped ZED
scheme introduced on 28.04.2022:
Sl Risk Rating of the Unit ZED Rating of the Concession in Concession in
No (New/Existing) MSME unit Rate of Interest* processing
charges*
1 Internal Rating – CNR I to V Bronze 0.10 % 10 %
(Minimal/LR) External Silver 0.25 % 25 %
Rating – AAA/AA/A Gold 0.50 % 50 %
2 Internal Rating – CNR VI Bronze 0.10 % 10 %
(NR) External Rating – BBB Silver 0.20 % 20 %
Gold 0.30 % 30 %
3 Internal Rating – CNR VII Bronze -- --
(MR-1) External Rating – Silver 0.10 % 10 %
BBB Gold 0.25 % 25 %
4 External Rating – BB/B & No concessions permitted
below
 The different types of the assessment process developed by the Quality Council of India under the ZED
Certification Scheme is as under.
i. Desktop verification
ii. Remote assessment
iii. Onsite assessment
478/22 --------
479/22 Modifications in Pradhan Mantri Kisan Sampada Yojana (Scheme for Creation/Expansion of Food Processing &
Preservation Capacities (CEFPPC/Unit Scheme) guidelines
 The following sectors are eligible under the schemes.
1) Fruits & Vegetable processing,
2) Milk processing,
3) Meat/Poultry/fish processing,
4) Ready to Eat/Ready to Cook Food Products/Breakfast Cereals/Snacks/bakery and other food
products including nutritional health foods,
5) Grains/pulses, oil seed milling and processing based on modern technology.
6) Modern Rice milling,
7) Other agri-horti products including spices, coconut, soya bean, mushroom processing, honey
processing,
8) Fruit/honey based wines,
9) Natural Food flavours, food additives/food extracts & colours, oleoresins, guar gam, cocoa products,
10) Manufacturing jaggery from sugarcane and value added products from jaggery (as raw material)
except sugar mills,
11) Any other sector that makes food products fit for human consumption,
12) Animal feed manufacturing unit(s), already set up or being set up, in Mega Food Parks or Agro
Processing Clusters approved by the Ministry from time to time,

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13) Carbonated drinks/ beverages containing fruit juice/ pulp (more than 5% in case of lime/ lemon and
more than 10% in case of other fruits) will be considered for financial assistance under the Scheme.
A maximum of two (2) units in a Mega Food Park (MFP) and one (1) unit in Agro Processing Cluster
(APC) can be sanctioned under this category.
Note:
i) Activities related to manufacturing of aerated water (other than that covered under serial no.
[13] above and packaged drinking water will not be considered for financial assistance under the
Scheme.
ii) Financing activities such as dairy farming, poultry farming, mushroom farming, hatcheries etc.,
are not eligible for financial assistance under the scheme
480/22 Modification to the Delegation of powers for sanction and waiver of Merchant Discount Rate (MDR) & RENT
for POS (Point of Sale) ME Policy 2022-23 w.e.f 01.04.2022
 The delegation of powers with concession/waiver of Rent and MDR for sanction of POSEDC (Point of Sale
Electronic Data Capture) terminals ( ME enrolments ) are furnished here below :

Rent for POS (Risk categorized as per CIC) Sanctioning Authority

Standard Rate for Low, Normal and Moderate Risk merchants Branch Head
Concessional Rate up to 100% for Low, Normal and Moderate Risk RO Head
merchants
Standard Rate and Concessional Rate up to 100% for High Risk merchants. Circle Head
MDR for POS (Risk categorized as per CIC) Sanctioning Authority
Standard Rate for Low, Normal and Moderate Risk merchants. Branch Head
Concession upto 25% of standard rate for Low, Normal and Moderate Risk RO Head
merchants
Concession beyond 25% and upto 50% of standard rate for Low, Normal and Circle Head
Moderate Risk merchants.
Standard Rate for High Risk merchants Circle Head
Concession above 50% of Standard rate including full waiver for Low, Normal Wing Head, DBS Wing, HO
and Moderate Risk merchants
Concession above Standard rate including full waiver for High Risk Wing Head, DBS Wing, HO
merchants

 Based on the monthly turnover in POS terminals , merchants where standard Rent and MDR is charged
/ sanctioned will be extended with the below concessions
Turnover in POS terminal in a particular Month Concession in Rent
3 lakhs to 5 lakhs 50% of standard Rate
Above 5 lakhs 100% waiver in Rent

 CASA account holders availing POS terminals and maintaining following Monthly Average Balance (MAB)
shall be extended concession in rent.
MAB in CASA accounts where POS is availed Concession in Rent
3 lakhs to 5 lakhs 50% of standard Rate
Above 5 lakhs 100% waiver in Rent

 The above collection of Rent is automated in CBS w.e.f 10.07.2022 and POS rent shall be collected on
10th of every month.
 In addition to MDR, Rent is also completely waived for Central Government merchants including Defense
Merchants.
481/22 Role of RAHs/ Branches for monitoring and recovery of Retail Loans – Modified Functionality Guidelines
 (Nearest Branches (branches located within 20 kms.) mapped to their respective RAHs are categorized
as Category-I Branches with the functionality that RAH to serve end to-end process of loan proposals.
End-to-end process consists of Presanction process, Appraisal, Processing (i.e., sanctioning,
documentation, disbursement, safekeeping of loan documents) and recovery mechanism till closure of
the loan. However, the primary responsibility of follow-up & recovery mechanism of the loan shall be
with the respective branches where the loan is attached as per loan balancing report.
 RAHs to sanction Retail loan proposals sent by these branches (branches located more than 20 kms from
RAHs) and convey the sanction to the respective branches. Further, branches will undertake the
execution of the documents and further process till closure of the loan.
482/22 SCHEME OF DELEGATION OF POWERS FOR CREDIT SANCTIONS-UPDATED TILL 30.06.2022
 As the sanctioning powers are determined on the basis of credit risk rating grade of the borrower/score
card, such process, wherever applicable, shall be a pre-sanction exercise. Branches/ offices are advised
to ensure strict compliance to this at the time of initial processing of the credit proposal.
 In case of renewal of existing limits with reduction, the delegated authorities (as per the reduced limits)
shall take a suitable credit decision with regard to renewal and ensure compliance of terms and
conditions of earlier sanctions.

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 Canara Institute of Bank Management, Manipal

 In case where limits are sanctioned and not availed (within validity of sanction), in such cases, the
guidelines on validity of sanction, modification in sanction terms etc. shall be adhered as per extant
guidelines.
 In case the validity of sanction is expired and proposal is re submitted afresh, the respective delegated
authority as per the delegation of powers may sanction such proposals with fresh assessment based on
merits.
 No authority, other than CAC of the Board and above authorities, is empowered to permit credit
facilities to new borrower clients rated High Risk.
 All the Credit Proposals of MCBs falling under the powers of Head Office shall be submitted by the
MCBs directly to the concerned wing (MCCW/MSME/PC/SAM Wing) at HO with a copy to concerned
Circle Office. Further, the respective Circle Heads shall submit their recommendations on the proposal
by way of Front Sheet to the concerned wing at HO within 2 days of receipt of the proposal.
 Primary security: Specially minted Gold coins sold by Banks
 Assets approved by the Bank: Specially minted Gold coins sold by Banks.
 Ascertaining the ownership under management control of one entity by another will be the criteria for
determining group/associate concerns. In case of doubt, the decision of the respective sanctioning
authority shall be final.
 Takeover of retail loans from NBFCs/HFCs: Non salaried class: Minimum qualifying Risk Grade of CRG-3
(Moderate Risk) of the borrower.
 Enhancement / additional limits / adhoc credit facilities for borrowal accounts classified as NPA and those
falling upto the sanctioning powers of Circle Head CACs can be permitted by CGM/GM-HO-CAC and
above authorities upto their delegated powers.
However, renewal in existing limits may be permitted by Circle Head CAC and above authorities for
accounts falling upto their delegated powers.
 For issuance of Bank Guarantees on behalf of Joint Ventures (JVs), Wholly Owned Subsidiaries (WOS) and
Third Parties, the proposal shall be taken up with the Sanctioning Authorities at Head Office only. In case
of fresh issuance of BG in case of sanctioned limit also, the proposal shall be taken up with the
Sanctioning Authorities at Head Office.
 In case of Branch/RO/CO/MSME Sulabh sanction, if the enhancement/ increase is more than 100% during
the mid-term enhancement of previous limit, the proposal for sanction shall be placed to the Next Higher
authority as per delegated powers. The above guidelines shall not be made applicable to Gold Loans, KCC
Loans and Staff OD Schemes. In case of enhancement/ increase is more than 100% during the regular
renewal, respective sanctioning authority can permit the same as per delegated powers
 In case, CIC score of the borrower as per CIC Report (Consumer) is less than 650, proposal may be
sanctioned as under:
Sanctioning Authority Permitting Authority
Upto RO Head CAC Next Higher Authority
Above RO Head CAC Respective CACs
 MD &CEO, and Executive Director overseeing advances may permit to Offer quotes (ROI / Commission)
to PSUs, PSEs, Central Government Undertakings and State Government Undertakings who approach for
knowing the pricing / commission of the proposed credit exposure (Fund Based / Non Fund Based) as
under:
Quotes to be permitted by Amount
MD & CEO* Above Rs 300 Crores
ED overseeing advances Up to Rs 300 Crores
 No powers are vested with other branch authorities for sanction of limits to Shares and Stock Brokers .
 Each LC discounting shall be permitted on Single Transaction basis. The minimum amount of each bill
under this scheme shall not be less than Rs 5 lacs or equivalent in foreign currency.
483/22 Hindi Day Celebrations 2022: All India Intra - Bank Hindi Essay Writing Competition
484/22 MODIFICATION IN THE PROCEDURE FOR HANDLING COMPLAINT ON UNAUTHORISED POS and E-COMMERCE
TRANSACTIONS DONE USING DEBIT CARD
 In order to ensure timely and speedy resolution of complaints with regard to unauthorised POS and
ecommerce transactions done using debit cards also under the purview of CCR.
485/22 MINIMUM MARGIN REQUIREMENT IN NFB LIMITS – MODIFICATIONS
The Competent Authority has stipulated additional guidelines in respect of Bank Guarantees issued
beyond 5 years (both secured and clean) as under:
 Minimum margin requirement for bank guarantees issued beyond 5 years shall be 25% in the form of
TDR. These margins shall be in addition to any collateral securities of tangible properties that may be
stipulated for the limit.
 Reduction in minimum margin requirement for Bank Guarantees extending beyond 5 years by way of
Cash/ Deposit can be permitted by the following authorities subject to the conditions as under: 1) Over
all profile of the borrower.
2) Risk rating of the borrower (Risk rating of the borrower shall not be more than one year old).
3) Collateral comfort provided/available.
4) Past record/standing of the borrower.
5) Value of the account Market competition
Authority Margin

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 Canara Institute of Bank Management, Manipal

CGM/GM-HO CAC Not less than 10% in respect of accounts rated upto and including
Moderate Risk, falling up to its delegated powers
ED – CAC Not less than 5% in respect of accounts rated upto and including
Moderate Risk, falling up to its delegated powers
CAC of the Board Full powers for accounts upto its delegated powers

 Additional commission of 0.25% shall be stipulated in respect of Bank Guarantees exceeding 5 years
where minimum margin of 25% is not maintained.
 Waiver of the additional commission can be permitted by CGM/GM-HO– CAC and above authorities for
accounts up to its delegated powers.
486/22 Revamped Web Based Package for online Submission of Monthly Performance Report (MPR) of AEOs in Single
Authentication System (SAS)
487/22 RATES OF INTEREST ON RUPEE LOANS AND ADVANCES (MCLR, RLLR, STRLLR and EBLR2) w.e.f. 07.08.2022
488/22 Accessibility Standards in respect of Infrastructure and Services Related to Banking, Currency and ATMs for
Persons with Disabilities (PwDs) or Reduced Mobility - Providing Ramp Facility at Branches/ Offices/ ATMs.
This facility has to be provided as per Section 40-46 of Rights of Persons with Disability (RPwDs) Act 2016.
489/22 Revision in Interest Rates on Domestic & NRO Term Deposits w.e.f. 08.08.2022.
490/22 Revision in Interest Rates on NRE Term Deposits w.e.f. 08.08.2022
491/22 FAQs ON PRADHAN MANTRI FASAL BIMA YOJANA
492/22 Launch of “Canara 666” - New Retail Term Deposits Product for 666 Days
 Retail Term Deposits Product (less than ₹ 2 Crore) for a term of 666 days and for receiving interest
payment on monthly / quarterly / half yearly /maturity.
 New Product codes (2501 – 2524)
 MINIMUM DEPOSIT (AMOUNT) :: ₹25,000 for both online/offline
 Additional Rate of Interest 0.45% for 666 days (1-2 years maturity) for all the eligible deposits
 The deposits under this product will not be renewed automatically
493/22 Revision in Rate of Interest under Canara Vehicle loans (4 wheeler), Canara Green Wheels including agriculturist
& Firms and Companies (General & Electric Vehicle)
494/22 CONTINUATION OF CONCESSIONAL RATE OF INTEREST FOR HIGH VALUE/AREA SPECIFIC AGRICULTURE
ACTIVITIES w.e.f. 01.08.2022 TO 31.07.2023
 Concessional RoI is to be extended for accounts rated up to Moderate Risk where internal rating and up
to B where external rating is applicable.
 The Continuation of Concessional Rate of Interest will be applicable for Working Capital (fresh sanctions
and renewals) and Term Loans (fresh as well as existing loans) by linking to Marginal Cost of Funds based
Lending Rate (MCLR) in case of Farm Credit & Agriculture Infrastructure, Repo Linked Lending Rate for
Food & Agro processing Units classified under Agriculture Ancillary up to an exposure of Rs 100.00 Crores
from the Banking System.
 Addition of Compressed Bio gas plant under Concessional ROI regime
 Discontinuation of Concessional RoI for Horticulture Projects, Lift Irrigation Projects, Micro Irrigation
Projects and Scheme for Purchase of Sugarcane Harvesting Machine under tie up with Sugar Mill
495/22 Reiteration of guidelines in Concessional ROI of 25bps for Housing Loans (all variants) due to revision in RLLR
w.e.f 07.08.2022
496/22 New Schedule Codes- Revision in Rate of Interest under Canara Vehicle loans (4 wheeler), Canara Green
Wheels including agriculturist & Firms and Companies (General & Electric Vehicle)
497/22 Data Entry and Reconciliation for Pradhan Mantri Fasal Bhīma Yojana (PMFBY) Kharif 2022-reg
498/22 MoU with IISc, Bengaluru for financing Education Loans under Vidya Turant Scheme - valid up to 04.08.2027
499/22 Modified guidelines on change of Interest Regime from MCLR to RLLR regime and effective ROI for Canara
Solar Product code
500/22 Mandatory Generation of Loan Documents in LAPS Module
501/22 One Time Settlement- Need to adhere to the laid down procedures
502/22 ---------
503/22 INTRODUCTION OF SERVICE CHARGES ON TRANSACTIONS DONE THROUGH OUR BANK / OTHER BANK BC
AGENTS
 Bank has entered into Agreement with Corporate BCs viz. M/s Sanjivani Vikas Foundation Bihar, M/s
Vision India Software Exports P Ltd, M/s Gram Tarang Inclusive Development Services P Ltd, M/s Fino
Payment Bank Ltd & M/s AISECT Ltd.
S No Particulars Service Charge
NON-BSBD CUSTOMER (GENERAL SB)
1 Financial Transaction (Cash Deposit/ Rs. 30 + GST per Transaction
Cash Withdrawal / Fund Transfer) done
through Other Bank BCAs
Non-Financial Transaction (Mini Rs. 6 + GST Per Transaction
Statement) done through Other Bank
BCAs

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 Canara Institute of Bank Management, Manipal

2 Financial Transaction (Cash Rs. 25 + GST per cash withdrawal transaction

Withdrawal) done through Canara through Canara Bank BCA after first 4 Cash
Bank BCAs Withdrawal Transactions done during a month
through Branch/ ATM/ Canara Bank BCA.
Non-Financial Transaction (Mini Nil Charge
Statement) done through Our Bank
BCAs
BSBD CUSTOMER
1 Financial Transaction (Cash Rs. 20 + GST per cash withdrawal & Fund Transfer
Withdrawal/ Fund Transfer Debit) Debit transaction done through any Bank BCA after
done through Canara Bank BCA & first 4 Cash Withdrawal Transaction done during a
Other Bank BC month through Branch/ ATM/ Any Bank BCA
2 Non-Financial Transaction (Mini Nil Charge
Statement) done through Our Bank
BCAs
504/22 Modifications in BAX03 FP option (Cash Loading details).
 Modifications in the existing BAX03 option to capture cash loaded & unloaded amount and to post
accounting entries in CBS for those amounts.
 BAX03 option enabled for Cassette swapping ATMs & BNA/ Cash Recycler machines to capture the cash
unloaded amount.
 Introduction of BAX06 (Cash Load Details Reversal) option
505/22 Priority Sector Lending (PSL)-Target for Non-Corporate Farmers FY 2022-23
Priority Sector Lending target for Non-Corporate Farmers for FY 2022-23 will be 13.78% of ANBC/CEOBE,
whichever is higher.
506/22 Extension of NOBOL (Nationwide One Branch One Loan) Campaign under Agriculture Infrastructure Fund
(AIF) Scheme from 16th Aug to 15th Sep,2022
507/22 Special Package under Canara Budget, Canara Vehicle Loan & Education Loan schemes to the employees of
M/s Can Fin Homes Ltd. – On All India Basis
 Processing Charges: 100% waiver in the applicable processing charges, involving a maximum sacrifice as
under
i. For Canara Budget Loans: involving a maximum sacrifice of Rs. 5,000/- per loan.
ii. For Canara Vehicle (4 wheeler) Loans, involving a maximum sacrifice of Rs. 5,000/- per loan.
iii. For Education Loan (above Rs. 7.50 Lakh), involving a maximum sacrifice of Rs. 10,000/- per
loan.
 Rate of Interest:
i. Concessional ROI @ RLLR i.e. 8.30% presently, involving a maximum interest concession of 70 bps
irrespective of the category of the borrower up to Moderate Risk (CRGIII) only.
ii. Customers falling under High Risk Category shall be charged as per prevailing Card Rates.

 Canara Budget (with salary tie-up): Concessional ROI @ RLLR+2.40% i.e. 10.70% presently, involving a
maximum interest concession of 200 bps.
 Loan Quantum (Canara Budget): Respective branches are delegated to sanction higher quantum of loan
up to 15 months’ gross salary subject to a maximum of Rs. 10.00 Lakh up to “Moderate Risk (i.e. CRG-3)”
customers only. For “Higher Risk (i.e. CRG-4)” customers, the delegation is as per the extant guidelines .
508/22 CLARIFICATION FOR PATERNITY LEAVE
509/22 Operational Guidelines for revamped Agricultural Credit Centres (ACCs).
 Agricultural Credit Centres (ACCs) are Centralized Processing Hubs opened for processing of
Agricultural Loans in line with the Retail Assets Hub (RAH) model.
 To overcome the operational difficulties faced by ACCs under the existing model, modifications in
operational guidelines have been introduced.
 Fresh term loans/Composite loans above Rs.5.00 lakhs to be sanctioned at ACC, (except Gold loans,
loans to SHG/JLG, VSL, Government sponsored schemes not backed by mortgage of properties).
 ACC to have Credit Committee concept for sanctioning of loans, exercising delegation of powers at par
with DM-CAC at MSME Sulabh.
 All Core Agri Lending branches except AF Hi-tech Branches will be linked to ACCs
 Further, KCC/CKOD Limits will be kept outside the purview of ACC and will be sanctioned at respective
Branch only.
510/22 Processing and Sanctioning of MSME Loans in Lending Automation Processing System (LAPS) and Maintaining
Optimal TAT – Reiteration of guidelines
511/22 To stop Issuance of Fresh Cards with “E-Syndicate Logo” to Customers
512/22 Need for better Customer Service
513/22 MSME Sulabh – Modification of guidelines on: Revised process flow by MSME Sulabhs for recommending
proposals to respective Credit Approval Committee ( CAC). Modification in Constitution of Credit Approval
Committee at Sulabh.
514/22 Strengthening of Recovery Mechanism in respect of Retail Loans - Role of RAHs/ Branches & Regional Offices
for monitoring and recovery of Retail Loans – Modification in functional guidelines

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 Canara Institute of Bank Management, Manipal

 A Retail Recovery Cell at RO with required staff shall be formed for initiating recovery actions under
SARFAESI, Filing Suit, Seizure of vehicles, OTS etc, for Retail NPAs. The cell shall be monitored by
Overseeing Executive, Recovery Section, at RO within the overall supervision of RO Head.
 Role of Branch: Primary responsibility of recovery mechanism including monitoring of SMA
accounts.Co-ordinate with the Retail Recovery Cell for initiating recovery actions i.e., SARFAESI, Suit
Filing etc., as per bank extant guidelines.
 Role of RAH: To co-ordinate and facilitate the Retail Recovery cell in providing required copies of loan
documents for initiating recovery action by way of SARFAESI/Suit Filing/Transferring the file to ARM .
Obtention of AODs.
 Role of Regional Office: a) Role of Retail Recovery Cell: Monitor with the respective branches in
minimising SMA book/and to track the NPA slippages. All steps shall be taken to prevent slippages to
NPA as per extant guidelines. Preparation of NF607 for onward submission to respective delegated
authority to get the permission to initiate recovery action, as per guidelines.
515/22 BLACK LISTED NGO
516/22 Sovereign Gold Bond Scheme 2022-23 Series II – Issue Price
517/22 Service charges for NEFT transactions done through bulk GEFU facility and through CBS fast path 8335
518/22 INTERNAL RISK RATING OF ACCOUNTS IN MSME SULABHS – MODIFICATION IN GUIDELINES
 For all Accounts where exposure is above Rs. 2.00 Cr. to Rs. 35.00 Cr
 MSME Sulabhs shall initiate the Internal Risk Rating in CIRM (LAPS) for all accounts (new & existing)
including NBFC, Real Estate, software and Share & Stock Brokers etc., and forward the application in
LAPS Package to respective circle offices for their review and recommendation. It shall be ensured that
the rating initiating official is different from the loan processing officer.
 RM Section, Circle Office shall review and forward the rating to HO.
 Section in Charge, CRRD, RM Wing shall verify the Rating.
 DM/AGM/DGM, RM Wing, Head Office, as the case may be, shall confirm/approve the internal Risk
Rating.
 For all Accounts where exposure is above Rs. 35.00 Crore
 Internal Risk Rating in CIRM model shall be initiated by CRRD, RM Wing.
 DM/AGM overseeing CRRD, RM Wing shall verify Internal Risk Rating.
 GM/GM/DGM, RM Wing, Head Office, as the case may be, shall confirm/approve the internal Risk
Rating.
 Confirmation/Approval of Risk Rating under CIRM model shall be as under:
Exposure Confirming Authority

Upto Moderate Risk High Risk

Upto Rs. 35 Cr. DM/AGM DGM

> Rs. 35 Cr. to 250 Cr. DGM CGM/GM

> Rs. 250 Cr. CGM/GM CGM/GM

519/22 De blacklisting of NGO

520/22 Revised grading formats for all SHGs Bank linkage
521/22 Observing September 2022 Month as Hindi Fortnight/Month
522/22 GST Applicability on Liquidated Damages, Compensation and Penalty arising out of Breach of Contract or
Other Provisions of Law.
 Liquidated damages are merely a flow of money from the party who causes breach of the contract to
the party who suffers loss or damage due to such breach. Such payments do not constitute
consideration for a supply and are not taxable under GST regime.
 As per above clarification GST on liquidated damages is not applicable and should not be collected
from the vendors/customers.
 Cheque dishonour fine/penalty: The fine/ penalty that the supplier or banker imposes for dishonour of
a cheque (including ECS mandate), is a penalty imposed for not tolerating the act or situation, but
penalizing with the aim to deter and discourage such an act or situation. Therefore, such fine/ penalty
is not a consideration for any service and accordingly, not taxable.
 As per above clarification GST on cheque dishonor fine or penalty is not applicable, hence GST should
not be collected from the customers.
 Forfeiture of salary and/or payment of bond amount in the event of the employee leaving the
employment before the minimum agreed notice period.
 The provisions for forfeiture of salary or recovery of bond amount in the event of the employee leaving
the employment before the minimum agreed notice period are incorporated in the employment
contract to discourage non-serious candidates from taking up employment.
 The said amounts are recovered by the employer not as a consideration for tolerating the act of such
premature quitting of employment but as penalties for dissuading the nonserious employees from
taking up employment and to discourage and deter such a situation. Further, the employee does not
get anything in return from the employer against payment of such amounts. Therefore, such amounts

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 Canara Institute of Bank Management, Manipal

recovered by the employer are not taxable under GST regime as consideration for the service of
agreeing to tolerate an act or a situation.
 As per above clarification GST on Forfeiture of salary and/or payment of bond amount in the event of
the employee leaving the employment before the minimum agreed notice period is not applicable,
hence GST should not be collected from the employees
 GST Refund: According to Section 54 of CGST Act, Bank can claim refund of excess paid GST within two
years from the end of month in which the GST liability was discharged, provided the Bank has reported
the excess / refund of GST in GSTR9 /9C.
523/22 Mandatory Update of MIS Data for All the Eligible Education Loans in CBS.
524/22 Availability of MIS Reports in Document Management System (DMS) – Mandatory Reports in Phase I.
525/22 Standard Operating Procedure (Sop) For Security/Fire Safety Precautions During Holidays / Extended
Weekends
526/22 --------
527/22 “Mandatory Generation of Loan Documents in LAPS Module”- Modification in guidelines
528/22 ECS facility for recovery of monthly installments in respect of Retail loans through Mandate management
under NACH - Reiteration of guidelines
529/22 Optimum Utilization Of Space In Branches And Offices
530/22 -------
531/22 Submission Of Statement Of Outstanding / Overdue Bills For Limit Approval Under Whole Turnover – Export
Credit Insurance For Banks (Wt-Ecib)
532/22 List Of Chartered Accountants/Auditor Firms Empanelled As Forensic Auditors During Quarter-Ii Of Fy 2022-
2023
533/22 Availability of flexibility in selecting EMI commencement date to match with Salary Date/Income Generation
Date under Retail Loans - Reiteration of guidelines
534/22 -----
535/22 Farm Machinery Finance - Approved List Of Tractors
536/22 Master Circular - Credit facilities to Minority Communities.
 The communities which are notified as minority communities by the Government of India, Ministry of
Minority Affairs are Sikhs, Muslims, Christians, Zoroastrians, Buddhists & Jains.
 In the case of a partnership firm, if the majority of the partners belong to one or the other of the
specified minority communities, advances granted to such partnership firms may be treated as
advances granted to minority communities.
 If the majority beneficial ownership in a partnership firm belongs to the minority community, then such
lending can be classified as advances to the specified communities.
 A company has a separate legal entity and hence advances granted to it cannot be classified as
advances to the specified minority communities.
 The Lead Banks in the 121 identified districts having concentration of minority communities may
involve the State Minority Commission/Finance Corporation in the extension work including creating
awareness, identification of beneficiaries, preparation of viable projects, provision of backward and
forward linkages such as supply of inputs/marketing, recovery etc.
537/22 ASBA (Application Supported by Blocked Amount)–Modification in Sub-Syndicate Process Flow and Timeline
 As per SEBI guidelines, new timeline for processing of applications under Sub-Syndicate (applications
above Rupees Two Lakh) has been modified to Transaction day i.e.(T+0) in place of T+1 day. The
timeline of T+1 day will be discontinued from 1st Sept, 2022.
 The Sub-Syndicate ASBA application with invest amount from ₹2 lakh to ₹5 lakh shall be treated as HNI
/ QIB Investors category.
 All ASBA applications under individual category for investment amount up to ₹5 lakh shall be treated as
Direct ASBA, even though Investors uses Sub-Syndicate ASBA Application forms.
 In case of Equity Issues, allotment will be done on ONE PAN ONE APPLICATION under one category only
.
538/22 Amendment in Atal Pension Yojana Notification- Change in Eligibility Criteria
 Any citizen between the age of 18 and 40 years, who is an income tax payer, shall not be eligible to join
APY w.e.f 1st October, 2022.
 In case a subscriber, joining APY on or after 1st October, 2022, is subsequently found to have been an
income-tax payer on or before the date of application, his/her APY account shall be closed and the
accumulated pension wealth till date would be given to the subscriber.
 It is also clarified that any APY subscriber joining APY on or after 1st October, 2022, who is not an
income-tax payer on the date of application, and subsequently becomes an income-tax payer, his/her
APY account will not be closed.
539/22 Introduction of M/s NADL (NeSL ASSET DATA LIMITED) as an Account aggregator (AA) and Standard Operating
procedures (SOP) for utilizing services of AA as a Financial Information User (FIU) using LAPS package
 Account aggregator framework, introduced by RBI aims to make financial data more accessible by
creating data intermediaries called Account Aggregator (AA) which will collect and share the user’s
financial information from a range of entities that hold consumer data called Financial Information
Providers (FIP) to a range of entities that are requesting consumer data called Financial Information Users
(FIU) after obtaining the concent from the consumer.

परिपत्र साि: Gist of Circulars 115

 Canara Institute of Bank Management, Manipal

 Sahamati is a member-driven industry alliance formed to promote and strengthen the Account
aggregator ecosystem in India. It is not-for-profit private limited company under Section 8 of the new
Companies Act of India.
 Currently there are Five AAs with Operating License:
SL No Account Aggregator Parent Company Account Aggregators

1 M/S CAMSFinServ CAMS

2 M/S Cookiejar Technologies Pvt Ltd FInVu

3 M/S FinSec AA Solutions Pvt Ltd One Money

4 M/S NESL Asset data Limited NADL

5 M/S Perfios Account Aggregation Services Anumati

Pvt Ltd

540/22 Observance of Retail Loan Festival from 01.09.2022 to 31.12.2022 on Pan India Basis
541/22 Loans and advances against shares/debentures: revised list of companies
542/22 Concessions extended for the last one year to be recovered before closure in case of takeover of the account
by other banks/financial institutions – reiteration of guidelines.
543/22 Canara GST scheme – Modifications in existing scheme guidelines
 Maximum loan amount: Rs.10 Crores.
 Nature of Facility: Working Capital
i. Fund-based
ii. Non-Fund based as sub-limit of fund-based limit under the scheme, by way of Letters of Credit
(Inland/Foreign and/or Trade Credit) opened for procurement of raw materials and Bank
Guarantees issued in lieu of Advance payment (i.e. Mobilization advance) from buyers.)
 Properties accepted as security comprising: 1) Select Rural properties 2) Vacant Land properties :
i. Clearance from RO Head CAC to be obtained in case of proposals falling under power of
Sanctioning Authorities below RO Head CAC.
ii. In case of accounts falling under the powers of RO Head CAC and above upto Circle power
accounts, Circle Head CAC can permit for the same.
iii. In case of HO power accounts, the respective Sanctioning authority in whose power the proposal
falls, can permit the same.
 Proposals with collateral security comfort of 75% and above may be considered for sanction by the
respective sanctioning authorities. However, proposals pertaining to manufacturing units with collateral
security comfort of 50% to < 75% shall fall under the sanctioning powers of Circle Head CAC and above
authorities only.
 Collateral Security value shall be minimum 75% of the loan amount in the form of (i) Mortgage of
immovable properties Land/Land & Building/ (ii) Other Approved Collaterals such as Assignable LI
policies, LIC Policy, NSC, Post Office Term Deposits, Govt. Securities, KissanVikasPatras (KVP) and Term
Deposits in Our Bank for the proposals to be considered by the Respective Sanctioning Authorities.
However, Circle Head CAC and above authorities have been empowered to sanction loans under the
scheme to manufacturing units (only) with collateral security comfort of 50% to < 75%.
 Minimum value to loan amount under the scheme shall be 75% for proposals of manufacturing/service
entities to be considered by Respective Sanctioning authorities delegated with such powers. b) However,
the value to loan amount under the scheme in the range of 50% to 75% may be permitted only in case
of manufacturing units by Circle Head CAC and above authority’s upto their delegated powers.
 In respect of properties which are less than one year old (i.e. latest execution of sale deed is done within
12 months), value of the property shall be taken as “sale deed value” or current “guideline value”
whichever is higher (and not the market value). However, after expiry of 12 months from the date of
execution of the latest sale deed, value of the property shall be reckoned as per extant guidelines, taking
into account the market value as per valuation report/s.
 Properties in the name of the following relatives of the promoters can also be accepted, provided they
stand as Guarantors: Brother-in-law, sister-in-law, mother-in-law, father-in-law, daughter-in-law and
son-in-law.
 Vacant land may be accepted as security upto a maximum of 25% of the permitted security comfort (in
terms of value), provided it is allotted by any government / Statutory body or it has been acquired by
Government for development of any industrial/ residential/ commercial purpose or Entity has been
permitted by the government /statutory body for acquiring the same for industrial / residential purpose.
 However, valuation of such properties shall be done on following lines: 90% of the acquisition cost as
per registered sale deed may be considered as cost of land, if it is acquired within immediate preceding
one year. If the land is acquired/ purchased beyond preceding one year, 75% of the Fair Market Value
assessed by the Bank’s approved Valuer should be taken as value of the land. Branches/offices shall
update the value of the immovable property once in three years complying with all other extant
guidelines in this regard. (i.e. even if the value of the vacant landed security as per valuation criteria
mentioned above is greater than 25% of the minimum required security comfort, value of the vacant

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land can be reckoned only for 25% of the minimum required security comfort for calculation of security
comfort).
 Tenanted properties may be accepted as security for this advance by the respective Sanctioning
Authority. However, a consent letter shall be obtained from the tenant/s in the specified format
mandatorily wherever tenanted properties are encumbered as securities under the scheme.
544/22 User Management in LAPS Module – Guidelines issued
545/22 On boarding of FINVU (M/S Cookiejar Technologies Pvt Ltd) and ANUMATI (M/S Perfios Account Aggregation
Services Pvt Ltd) as Account Aggregators (AA
 Account Aggregator Framework introduced by RBI aims to make financial data more accessible by
creating data intermediaries called Account Aggregator (AA) which will collect and share the user’s
financial information from a range of entities that hold consumer data called Financial Information
Providers (FIP) to a range of entities that are requesting consumer data called Financial Information Users
(FIU) after obtaining the consent from the consumer.
 Bank has already onboarded M/s NADL (NeSL Asset Data Limited) as one of the Account Aggreagtor as
Financial Information Provider (FIP) and Financial Information User (FIU).
 Bank has now onboarded FINVU (M/S Cookiejar Technologies Pvt Ltd) and Anumati (M/S Perfios Account
Aggregation Services Pvt Ltd) as Account Aggregators as Financial Information Provider (FIP) and Financial
Information User (FIU).
546/22 Provision of magnifying glasses at branches –Reiteration of guidelines
547/22 IBA Group Health Insurance Policy: Inclusion Of Employees Retired/Compulsorily Retired / Retiring / Spouses
Of Employees Who Died, During The Current Policy Of Serving Employees Expiring On 30.09.2022 Under
Retirees’ Policy
548/22 Central sector scheme of interest subsidy (CSIS) on education loans implemented by ministry of education,
Govt. Of India – opening of web portal in SAS package from 05.09.2022 to 30.09.2022 for submission of claims
pertaining to the FY 2021-22.
549/22 Rates of interest on rupee loans and advances (MCLR,RLLR,STRLLR and EBLR2) w.e.f. 07.09.2022
550/22 Foreign Contribution (Regulation) Act 2010 (FCRA) - Receipt of foreign contribution by
Individuals/NGOs/Organizations from foreign donors.
551/22 Identification and Classification of Borrowers as Wilful Defaulters
 All NPA accounts of Rs.25 lakhs and above are to be invariably examined from Wilful default angle.
552/22 Modification Of SOP - Standard Operating Procedure For Offsite Transaction Monitoring System
 The generated alerts based on scenarios will be assigned to ROs/COs after analysis at HO OTM section
level before 12 Noon. CO/RO to ensure closure of alerts in T+1 day basis.
553/22 Automation of Collection of Fee for opening / operating Escrow/ Trust and Retention Accounts
 Collection of fee for opening/operating escrow account/ Trust and Retention Accounts is
automated.New fields are introduced in FP BA020 –General Tab, CIX01, CHX01 & 8051 in CBS as under:
ESCROW/TRA account applicable our Share Amount. II. For all existing borrowers, wherever
ESCROW/TRA charges are applicable, the applicability and our share amount to be updated in BA020,
wherever applicable.
554/22 Implementation of Ethics and Business Conduct in the Bank
 With the objective of anchoring and promoting a positive culture in our Bank, an “Ethics and Business
conduct Cell” has been formed under Industrial Relations Section, Human Resources Wing, Head Office,
Bengaluru headed by Chief Ethics Officer (General Manager, HR Wing) for best implementation of Ethics
and Business conduct in the Bank. In this regard, “Ethics Officers” in the rank of Deputy General Manager
are nominated in all the Circles/ S A Section, Inspection Wing, Head Office/ HOSA Section, HR Wing, Head
Office to develop, spread awareness on ethical business and practices and to report to Ethics and
Business Conduct Cell at Head Office.
555/22 “PM Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi)” scheme for Street vendors - Modification under the
“Eligibility criteria of beneficiaries”.
 The scheme is now available to all street vendors engaged in vending in urban areas.
556/22 ‘Emergency Credit Line Guarantee Scheme (ECLGS)’ of M/s. NCGTC– Operational guidelines and FAQs updated
as on 30.08.2022
 The Scheme would be applicable to all loans sanctioned under GECL during the period from the date of
issue of these guidelines by NCGTC upto 31.03.2023 or till guarantees for an amount of Rs 5,00,000 crore
are issued (taking into account all components of ECLGS), whichever is earlier.
557/22 Instruction to Stop Facility of payment of subscriptions/ contributions to Tier- II Accounts of NPS through Credit
Card
558/22 Analysis Of Projected Financial Statements – Reiteration Of Guidelines
559/22 Submission Of Digital Life Certificate (DLC) Through Face Authentication
 These Certificates are obtained through JEEVAN PRAMAAN PORTAL which is one of Government of
India’s DIGITAL INDIA Initiative.
 Government of India in order to ease the Submission of Life Certificate has introduced various facilities
like Submission of Life Certificate under Door Step Banking, IRIS Scanner, Bio-metric device and V-CIP
(Video Based Customer Identification Process – Video Call Life Certificate).
 Recently Department of Pension and Pensioners Welfare, Govt of India has launched one more mode of
Submission of Life Certificate which is through “Face Authentication”.

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 Canara Institute of Bank Management, Manipal

 Pre-Requisites for using this facility Android Smartphone (version 7.0 & above) (un-rooted
device).Internet connection.RAM – 4 GB & above. Storage – 64GB (Minimum 500 MB free storage space
required) Aadhaar number to be registered with Pension Disbursing Authority. Camera resolution - 5
Mega Pixels or more.
560/22 “Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS)” of M/s NCGTC Ltd., for financing Brownfield
and Greenfield projects for setting up of/modernization/expansion of COVID related healthcare infrastructure
and services in the non-metropolitan areas –Extension of the validity of the scheme till 31.03.2023.]
 Validity of the subject scheme is extended to all eligible loans sanctioned under the same during the
period from May 07, 2021 till March 31, 2023 or till guarantees for an amount of Rs. 50,000 crore are
issued under the scheme, whichever is earlier.
 Last date of first disbursement of loans sanctioned under the scheme shall be within 3 months of
sanction of facility. However, loans which were sanctioned prior to issuance of the revised guidelines
shall be allowed additional time upto 3 months from the date of issue of the guidelines (i.e. from
17.08.2022) for first disbursement.
561/22 Single Nodal Agency-Guidelines
 The Nodal branch to open SNA account as normal SB account under product code 140
 Implementing Agency accounts should be opened as zero balance (ZB) accounts under product code 140
only
 Model-1 : Use of external system through REAT (Receipts, Expenditures, Advances & Transfers)
integration
 Model-2 : Use of external system through REAT integration (MIS + Payments) –
 Model-3 : In this Model State Depts. /Agencies will be using PFMS portal instead of Bank’s portal (or any
external system) for Budget allocation, Limit setting and expenditure filing
 Model-4 : Using State IFMIS (Integrated Financial Management Information System) of State Treasury
562/22 Clarification on applicability of Section 194R- TDS on Benefit or Perquisite in Respect of Business or Profession
 One-time loan settlement (OTS) with borrowers or waiver of loan granted on reaching settlement with
the borrowers by the Bank, would not be subjected to TDS u/s 194R of the Act.
 If the service provider (Vendor) incurs expenses in the course of rendering of service to the Bank and the
bill is in the name of the service provider, then the service provider would be claiming the GST credit and
hence the provisions of Section 194R would be applicable in that case. Further, if the service provider
incurs expense as “Pure Agent as per GST Valuation Rules 2017”, GST input credit is allowable to the
Bank, in such case reimbursement made by the Bank to the service provider, will not be treated as benefit
/ perquisite for the purpose of Section 194R and hence no TDS is required to be deducted.
 If out of pocket expenses (reimbursement) are already part of the consideration in the bill on which TDS
is deducted under the relevant provisions of the Act (194C/194J), further liability of TDS deduction u/s
194R of the Act, will not apply.
563/22 Introduction of ITAM Helpdesk & Biometric Bypass Portals
564/22 Modification in Rate of Interest charged under Short Term Repo Linked Lending Rate (STRLLR) for exposures
under BULC scheme

Particulars Description Rate of Interest

Constituent Borrowers Bills upto 90 days usance STRLLR+1.25%
Bills above 90 days upto 180 usance STRLLR+1.50%
Non Constituent Borrowers Bills upto 90 days usance STRLLR+1.25%
Bills above 90 days upto 180 usance STRLLR+1.50%
565/22 Master Circular - Credit facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs)
 Rejection of SC/STs’ loan applications under government programmes should be done at the next higher
level instead of at the branch level and reasons of rejection should be clearly indicated.
 DAY-NRLM would ensure adequate coverage of vulnerable sections of the society such that 50% of these
beneficiaries are SC/STs.
 Under DAY-NULM, advances should be extended to SCs/STs to the extent of their strength in the local
population.
 Under the DRI Scheme, banks provide finance up to ₹15,000/- at a concessional rate of interest of 4 per
cent per annum to the weaker sections of the community for engaging in productive and gainful
activities. In order to ensure that persons belonging to SCs/STs also derive adequate benefit under the
DRI Scheme, banks have been advised to grant eligible borrowers belonging to SCs/STs such advances to
the extent of not less than 2/5th (40 percent) of total DRI advances.
 Further, the eligibility criteria under DRI, viz. size of land holding should not exceed 1 acre of irrigated
land and 2.5 acres of unirrigated land, are not applicable to SCs/STs. Members of SCs/STs satisfying the
income criteria of the scheme can also avail of housing loan up to ₹20,000/- per beneficiary over and
above the individual loan of ₹15,000/- available under the scheme.
 Individual SC entrepreneurs/Registered Companies and Societies/Registered Partnership Firms/Sole
Proprietorship firms having more than 51% shareholding and management control for the previous 6
months by SC entrepreneurs/ promoters/ members are eligible for guarantee from IFCI Ltd. against the
loans extended by MLIs.

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 Canara Institute of Bank Management, Manipal

 The amount of guarantee cover under CEGSSC ranges from a minimum of ₹0.15 cr to a maximum of
₹5.00 cr. The tenure of guarantee is up to a maximum of 7 years or repayment period, whichever is
earlier.
566/22 FARM MACHINERY FINANCE - APPROVED LIST OF COMBINE HARVESTER
567/22 Resuming Nationwide KCC for Animal Husbandry, Dairying and Fisheries (AHDF) Campaign from 15th
September 2022 to 15th March 2023.
568/22 UPDATION OF DEPENDENT DETAILS
569/22 Corrigendum to HO circular no. IC/532/2022: list of chartered accountants/auditor firms empanelled as
forensic auditors up to quarter-ii of fy 2022-2023
570/22 IBA medical insurance scheme policy for serving employees - 2021-22
571/22 Introduction of a New Product Code-2001- MSME- SHG OD OCC and 637 – MSME -SHG Term loan
572/22 Master Circular – Priority Sector Lending (PSL) – Targets and Classification
 The categories under priority sector are as follows: i. Agriculture ii. Micro, Small and Medium
Enterprises iii. Export Credit iv. Education v. Housing vi. Social Infrastructure vii. Renewable Energy viii.
Others
 The targets and sub-targets set under priority sector lending, to be computed onthe basis of the ANBC/
CEOBE as applicable as on the corresponding date of the preceding year, are as under:

Categories Domestic Foreign banks with less Regional Rural Banks Small Finance
commercial banks than 20 branches Banks
(excl. RRBs & SFBs)&
foreign banks with
20 branches and
above
Total 40 % of ANBC or 40 % of ANBC or CEOBE 75 % of ANBC or 75 % of ANBC or
Priority CEOBE whichever is whichever is higher; CEOBE whichever is CEOBE
Sector higher out of which up to 32% higher; However, whichever is
can be in the form of lending to Medium higher.
lending to Exports and Enterprises, Social
not less than 8% can be Infrastructure and
to any other priority Renewable Energy
sector. shall be reckoned for
priority sector
achievement only up
to 15% of ANBC .
Agriculture 18% of ANBC or NA 18% of ANBC or 18% of ANBC or
CEOBE whichever is CEOBE whichever is CEOBE
higher, out of which higher, out of which a whichever is
a target of 10% is for target of 10% is for higher, out of
SMFs. SMFs. which a target
of 10% is for
SMFs.
Micro 7.5% of ANBC or NA 7.5% of ANBC or 7.5% of ANBC or
enterprises CEOBE, whichever is CEOBE, whichever is CEOBE,
higher higher whichever is
higher
Advances 12% of ANBC or NA 15% of ANBC or 12% of ANBC or
to weaker CEOBE, whichever is CEOBE, whichever is CEOBE,
sections higher higher whichever is
higher

 40 per cent of ANBC or CEOBE, whichever is higher, which shall stand increased to 75 per cent of ANBC
or CEOBE, whichever is higher, with effect from March 31, 2024. UCBs shall comply with the stipulated
target as per the following milestones:
March 31, 2020 - 40%
March 31, 2021 - 45%
March 31, 2022 -50%
March 31, 2023 -60%
March 31, 2024 -75%
 Micro Enterprises 7.5% of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever
is higher. Advances to Weaker Sections 12% of ANBC or credit equivalent amount of Off-Balance Sheet
Exposure, whichever is higher.
 2The targets for lending to SMFs and for Weaker Sections shall be revised upwards from FY 2021-22
onwards as follows:
Financial Year Small and Marginal Farmers target Weaker Sections target
2020-21 8% 10%
2021-22 9% 11%

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 Canara Institute of Bank Management, Manipal

2022-23 9.5% 11.5%

2023-24 10% 12%
 All domestic banks (other than UCBs) and foreign banks with more than 20 branches are directed to
ensure that the overall lending to Non-Corporate Farmers (NCFs) does not fall below the system-wide
average of the last three years’ achievement which will be separately notified every year.
 The applicable target for lending to the non-corporate farmers for FY 2021-22 will be 12.73% of ANBC or
CEOBE whichever is higher. All efforts should be made by banks to reach the level of 13.5% of ANBC.
 The applicable target for lending to the non-corporate farmers for FY 2022-23 will be 13.78% of ANBC or
CEOBE whichever is higher.
 From FY 2021-22 onwards, a higher weight (125%) would be assigned to the incremental priority sector
credit in the identified districts where the credit flow is comparatively lower (per capita PSL less than
₹6000), and a lower weight (90%) would be assigned for incremental priority sector credit in the
identified districts where the credit flow is comparatively higher (per capita PSL greater than ₹25,000).
The districts other than those will continue to have existing weightage of 100%.
 The lending to agriculture sector will include Farm Credit (Agriculture and Allied Activities), lending for
Agriculture Infrastructure and Ancillary Activities.
 Farm Credit - Corporate farmers, Farmer Producer Organisations (FPOs)/(FPC) Companies of Individual
Farmers, Partnership firms and Co-operatives of farmers engaged in Agriculture and Allied Activities (a)
Loans for the following activities will be subject to an aggregate limit of ₹2 crore per borrowing entity: (i)
Crop loans to farmers which will include traditional/non-traditional plantations and horticulture and
loans for allied activities. (ii) Medium and long-term loans for agriculture and allied activities (e.g.
purchase of agricultural implements and machinery and developmental loans for allied activities). (iii)
Loans for pre and post-harvest activities viz. spraying, harvesting, grading and transporting of their own
farm produce.
 Loans up to ₹75 lakh against pledge/hypothecation of agricultural produce (including warehouse
receipts) for a period not exceeding 12 months against NWRs/eNWRs and up to ₹50 lakh against
warehouse receipts other than NWRs/eNWRs. Loans up to ₹5 crore per borrowing entity to FPOs/FPCs
undertaking farming with assured marketing of their produce at a pre-determined price. UCBs are not
permitted to lend to co-operatives of farmers.
 Loans for agriculture infrastructure will be subject to an aggregate sanctioned limit of ₹100 crore per
borrower from the banking system.
 Ancillary Services : Loans up to ₹5 crore to co-operative societies of farmers for purchase of the produce
of members (Not applicable to UCBs). Loans up to ₹50 crore to Start-ups, as per definition of Ministry of
Commerce and Industry, Govt. of India that are engaged in agriculture and allied services. Loans for Food
and Agro-processing up to an aggregate sanctioned limit of ₹100 crore per borrower from the banking
system.
 Small and Marginal Farmers (SMFs)- Farmers with landholding of up to 1 hectare (Marginal Farmers). ii.
Farmers with a landholding of more than 1 hectare and up to 2 hectares (Small Farmers) . Loans up to ₹2
lakh to individuals solely engaged in Allied activities without any accompanying land holding criteria. ]
 Bank credit to registered NBFCs (other than MFIs) towards on-lending for ‘Term lending’ component
under agriculture will be allowed up to ₹ 10 lakh per borrower subject to conditions specified (not
applicable to RRBs, UCBs, SFBs and LABs).
 Khadi and Village Industries Sector (KVI) All loans to units in the KVI sector will be eligible for classification
under the subtarget of 7.5 percent prescribed for Micro Enterprises under priority sector. Loans up to
₹50 crore to Start-ups, as per definition of Ministry of Commerce and Industry, Govt. of India that confirm
to the definition of MSME.
 Export Credit (not applicable to RRBs and LABs) - Export credit under agriculture and MSME sectors are
allowed to be classified as PSL .
 i. Domestic banks/WoS of Foreign banks/SFBs/UCBs - Incremental export credit over corresponding date
of the preceding year up to 2 percent of ANBC or CEOBE whichever is higher, subject to a sanctioned limit
of up to ₹ 40 crore per borrower.
ii. Foreign banks with 20 branches and above - Incremental export credit over corresponding date of the
preceding year up to 2 per of ANBC or CEOBE whichever is higher.
iii.Foreign banks with less than 20 branches- Export credit up to 32 per cent of ANBC or CEOBE
whichever is higher.
 Education- Loans to individuals for educational purposes, including vocational courses, not exceeding ₹
20 lakh will be considered as eligible for priority sector classification. Loans currently classified as priority
sector will continue till maturity.
 Housing- Loans to individuals up to ₹35 lakh in metropolitan centres (with population of ten lakh and
above) and up to ₹25 lakh in other centres for purchase/construction of a dwelling unit per family
provided the overall cost of the dwelling unit in the metropolitan centre and at other centres does not
exceed ₹45 lakh and ₹30 lakh respectively. Existing individual housing loans of UCBs presently classified
under PSL will continue as PSL till maturity or repayment. Housing loans to banks’ own employees will
not be eligible for classification under the priority sector. Loans up to ₹10 lakh in metropolitan centres
and up to ₹6 lakh in other centres for repairs to damaged dwelling units conforming to the overall cost
of the dwelling unit.

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 Canara Institute of Bank Management, Manipal

 Bank loans to any governmental agency for construction of dwelling units or for slum clearance and
rehabilitation of slum dwellers subject to dwelling units with carpet area of not more than 60 sq.m. Bank
loans for affordable housing projects using at least 50% of FAR/FSI for dwelling units with carpet area of
not more than 60 sq.m.
 Bank loans to HFCs (approved by NHB for their refinance) for on-lending, up to ₹20 lakh for individual
borrowers, for purchase/construction/ reconstruction of individual dwelling units or for slum clearance
and rehabilitation of slum dwellers, subject to conditions.
 Social Infrastructure- Bank loans up to a limit of ₹5 crore per borrower for setting up schools, drinking
water facilities and sanitation facilities including construction/ refurbishment of household toilets and
water improvements at household level, etc. and loans up to a limit of ₹10 crore per borrower for
building health care facilities including under ‘Ayushman Bharat’ in Tier II to Tier VI centres.
 In case of UCBs, the above limits are applicable only in centres having a population of less than one lakh.
Bank loans to MFIs extended for on-lending to individuals and also to members of SHGs/JLGs for water
and sanitation facilities subject to the criteria laid down.
 Renewable Energy -Bank loans up to a limit of ₹30 crore to borrowers for purposes like solar based power
generators, biomass-based power generators, wind mills, micro-hydel plants and for non-conventional
energy based public utilities, viz., street lighting systems and remote village electrification etc., will be
eligible for Priority Sector classification. For individual households, the loan limit will be ₹10 lakh per
borrower.
 Loans not exceeding ₹2.00 lakh provided by banks to SHG/JLG for activities other than agriculture or
MSME, viz., loans for meeting social needs, construction or repair of house, construction of toilets or any
viable common activity started by SHGs. Loans to distressed persons [other than distressed farmers
indebted to non institutional lenders] not exceeding ₹1.00 lakh per borrower to prepay their debt to non-
institutional lenders. Loans sanctioned to State Sponsored Organisations for Scheduled Castes/
Scheduled Tribes for the specific purpose of purchase and supply of inputs and/or the marketing of the
outputs of the beneficiaries of these organisations. Loans up to ₹50 crore to Start-ups, as per definition
of Ministry of Commerce and Industry, Govt. of India that are engaged in activities other than Agriculture
or MSME.
 Weaker Sections - Priority sector loans to the following borrowers will be considered as lending under
Weaker Sections category: (i) Small and Marginal Farmers (ii) Artisans, village and cottage industries
where individual credit limits do not exceed ₹1 lakh (iii) Beneficiaries under Government Sponsored
Schemes such as National Rural Livelihood Mission (NRLM), National Urban Livelihood Mission (NULM)
and Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS) (iv) Scheduled Castes and
Scheduled Tribes (v) Beneficiaries of Differential Rate of Interest (DRI) scheme (vi) Self Help Groups (vii)
Distressed farmers indebted to non-institutional lenders (viii) Distressed persons other than farmers,
with loan amount not exceeding ₹1 lakh per borrower to prepay their debt to non-institutional lenders
(ix) Individual women beneficiaries up to ₹1 lakh per borrower (For UCBs, existing loans to women will
continue to be classified under weaker sections till their maturity/repayment.) (x) Persons with
disabilities (xi) Minority communities as may be notified by Government of India from time to time.
 Overdraft availed by PMJDY account holders as per limits and conditions prescribed by Department of
Financial Services, Ministry of Finance from time to time may be classified under Weaker Sections.
 In States, where one of the minority communities notified is, in fact, in majority, item (xi) will cover only
the other notified minorities. These States/ Union Territories are Punjab, Meghalaya, Mizoram,
Nagaland, Lakshadweep and Jammu & Kashmir.
 Bank loans to NBFCs for on-lending (not applicable to RRBs, UCBs, SFBs and LABs)- Bank credit to
registered NBFCs (other than MFIs) for on-lending will be eligible for classification as priority sector under
respective categories subject to the following conditions: (i) Agriculture: On-lending by NBFCs for ‘Term
lending’ component under Agriculture will be allowed up to ₹ 10 lakh per borrower. (ii) Micro & Small
enterprises: On-lending by NBFC will be allowed up to ₹ 20 lakh per borrower.
 Bank loans to HFCs for on-lending (not applicable to RRBs, SFBs and LABs)- Bank credit to Housing Finance
Companies (HFCs), approved by NHB for their refinance, for on-lending for the purpose of
purchase/construction/ reconstruction of individual dwelling units or for slum clearance and
rehabilitation of slum dwellers, subject to an aggregate loan limit of ₹20 lakh per borrower. Bank credit
to NBFCs (including HFCs) for on-lending as applicable will be allowed up to an overall limit of five percent
of individual bank’s total priority sector lending.
 No loan related and ad hoc service charges/inspection charges should be levied on priority sector loans
up to ₹25,000. In the case of eligible priority sector loans to SHGs/ JLGs, this limit will be applicable per
member and not to the group as a whole.
573/22 PROFIT & LOSS ACCOUNT FOR THE HALF YEAR ENDING 30.09.2022 AND BALANCE SHEET AS AT 30.09.2022.
574/22 Responsibilities of Recovery Agents - Reiteration of guidelines
575/22 Incognito visit by GOI/ RBI Officials – Better Customer Service
576/22 Submission of Life Certificate through VCIP – Video Based Customer Identification Process
 VCIP Facility is for pensioners residing in India only. No Service charges for availing this facility . The
Process involves Identification of Pensioner, Capturing of PAN Card, Aadhar, Signature and Location. On
completion of VCIP Process, Life Certificate will be uploaded to Pension Package automatically.

परिपत्र साि: Gist of Circulars 121

 Canara Institute of Bank Management, Manipal

 Requirement For Pensioners- Smartphone(Android/IOS) with Internet facility (Preferable a speed of 2

Mbps and above). Mobile Number should be registered with Aadhaar and Bank records. Original
Aadhaar Card and PAN Card.
577/22 MANDATORY UTILIZATION OF NETWORK OF BSNL & MTNL
578/22 Revision in Rate of Interest on Nitya Nidhi Deposit (NND) w.e.f. 01.10.2022
Period of NND Deposit Revised ROI Recovery of Penalty
Less than 12 months 0.10% Closure permitted after deducting 3% of
the balance as penalty
Completed 12 months and less than 24 0.25% NA
months
Completed 24 months and less than 0.50% NA
39 months
Completed 39 months and less than 63 1.00% NA
months
63 months on maturity 2.00% NA
579/22 CONTINUATION OF WAIVER OF ONLINE PRE-DISBURSEMENT REVIEW OF OTHER PERSONAL LOANS UPTO Rs
5.00 LAKH SANCTIONED AT RAHs
580/22 ---------
581/22 Revision in Rate of Interest under Canara Mortgage scheme
582/22 Foreign Exchange Management (Overseas Investment) - Guidelines on obtention of No Objection Certificate
(NOC) from the lender bank
 Any person resident in India who, (i) has an account appearing as a non-performing asset; or (ii) is
classified as a wilful defaulter by any bank, shall, before making any financial commitment or undertaking
disinvestment under Foreign Exchange Management (Overseas Investment) Rules, 2022 or the Foreign
Exchange Management (Overseas Investment) Regulations, 2022, obtain a No Objection Certificate from
the lender bank by making as application in writing to such bank. Provided, where the lender bank fails
to furnish the certificate within sixty days from the date of receipt of such application, it may be
presumed that there was no objection to the proposed transaction.
 The No Objection Certificate issued shall be addressed by the lender bank to the designated AD bank
with an endorsement to the applicant. Where an Indian entity has already issued a guarantee in
accordance with the FEMA provisions before an account is classified as NPA/wilful defaulter and
subsequently is required to honour such contractual obligation, such remittance due to the invocation
will not constitute fresh financial commitment and hence NOC shall not be required.
 Wherever our borrower (person resident in India) having an account appearing as a Non-performing
asset (NPA) or is classified as Wilful defaulter makes an application in writing for issuance of No Objection
Certificate (NOC) in accordance with rule 10 of Foreign Exchange Management (Overseas Investment)
Rules, 2022 before making financial commitment or undertaking disinvestment, branches shall seek
permission from the following authorities:
Upto CO power accounts Circle-Head-CAC
HO power accounts Respective sanctioning authority
MC power accounts CAC of the Board
 Decision of the competent authority shall be communicated to the designated AD bank with an
endorsement to the applicant within 60 days from the date of receipt of such application. The above
guidelines are also applicable in case of borrowal account under Multiple banking
arrangement/Consortium lending arrangement.
583/22 Usage charges for application routed through “Jansamarth Portal” (also known as National Portal) –
Modification in guidelines .
584/22 Automation of Credit related Service Charges
 Bank has automated collection of service charges for the following: Solvency Certificate, Capability
Certificate, Modification in Terms & Conditions of sanction, NOC in respect of exposures of Rs 1 Crore
and above, Waiver of Project Appraisal.
 New module named “Service Charges” is enabled in SAS Package.
 Solvency Certificate issued Applicable Charges
Upto Rs.1. Lakhs Rs.750/
Rs1Lakhs to Rs.25 Lakhs Rs.3000/-
Rs.25 Lakhs to Rs.50 Lakhs Rs.6000/-
>Rs.50 Lakhs 0.10% of the solvency certificate amount, minimum of Rs.60000.
 Capability Certificate issued Applicable Charges
 Upto Rs.5 lakh Rs.500/-
 Above Rs.5 lakhs Rs.100/- per lakh subject to a maximum of Rs.1,500/- Additional
capability certificate in Rs 100/- Per certificate.
respect of the same student for applying
to other Universities/same university within
12 months from the issue of original capability certificate
 Modification in Terms & Conditions of sanction:
 Sanctioned Amount Applicable charges (Per Instance of modification) Upto
Rs 1 crore Rs 5,000/-

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Above Rs 1 crore upto Rs 10 crore Rs 15,000/-

Above Rs 10 crore upto Rs 50 crore Rs 50,000/-
Above Rs 50 crore Rs 2,00,000/-
 NOC charges in respect of exposures of Rs. 1 crore & above -
Upto 10 crore Rs 1 Lakh
Above Rs.10 Crore and upto Rs.50 Cr. Rs.3,00,000/-
Above Rs.50 Cr. Rs.5 Lakh
 Waiver of Project Appraisal Charges Flat charge of Rs.1 lakh per waive. Wherever vetting of Information
Memorandum / TEV Report of other banks/FIs is involved, charges applicable for vetting / Waiver,
whichever is higher shall be collected.

585/22 EMPANELMENT OF JEWEL APPRAISERS – NEED FOR ADHERENCE TO GUIDELINES

 Based on the nature of appraisal works carried out, Jewel Appraisers are grouped into; a) Branch Regular
Appraisers - For carrying out Regular Appraisal of the jewels at the time of granting Gold Loans. b) RO
Panel Appraisers - For conducting various Reappraisal works and also for Regular Appraisal works in the
absence of Branch Regular Appraisers.
 Selection Committee of Jewel Appraisers: Selection of Jewel Appraisers shall be made by the committee
constituted at Regional Office constituting Chairman- Overseeing Executive of AF & PS Section, RO &
Members a) Section in-charge, AF & PS section, RO b) Section In-charge, Credit Review, Monitoring &
Recovery Section, RO.
 Practical experience of 5 years in Appraising/Handling Gold Jewellery is stipulated. Proof of such
experience certificate from previous employer, Certificate from Jewel appraiser Association etc. need to
be obtained. The license to run the shop may be considered in lieu of his practical experience. The license
should be at least 1-year old.
 The Minimum and Maximum age for selection as Jewel Appraiser is 30 and 60 Years respectively.
However, for Northern Circles (Agra, Ahmedabad, Bhopal, Bhubaneswar, Chandigarh, Delhi, Guwahati,
Jaipur, Karnal, Kolkata, Lucknow, Mumbai, Patna, Pune and Ranchi), the minimum age may be relaxed to
25 years, provided the candidate has a minimum experience of 5 years.
 The Minimum Educational Qualification stipulated is 10th class pass. In exceptional cases, the committee
may relax the same, taking into consideration other factors such as Non-availability of Jewel Appraisers
etc. Wherever, there is provision, the committee shall verify the genuineness of the documents through
the web portal of the issuing authority.
 Credit Information Report from any of the CICs shall be drawn to ascertain the financial dealings and
discipline of the Candidate.
 Skill Test for engaging the Jewel Appraiser- A panel of three Jewel Appraisers from RO/Nearby Branches)
shall be constituted for conducting the skill test along with Jewel Appraiser Selection Committee
members. Skill test is to be conducted in presence of the selection Committee members. Panel of Jewel
Appraisers shall arrange the Gold Jewellery of different purity for the test. Details of the jewels (net
weight, gross weight, purity etc) brought for the purpose of conducting skill test shall be reported to the
committee prior to the conduct of the Skill test. The applicants shall be provided with jewels of different
purity which are randomly chosen from the jewels brought by the panel of 3 appraisers and applicant to
assess the purity. Skill test results (appraisal by the applicant) to be compared by the committee with
the details already submitted by the panel of Jewel appraisers. The committee shall judge the capability
of the candidates for proper appraisal of the jewels. The report of the Jewel Appraiser Selection
Committee shall be placed to the RO Head and the final selection of Jewel appraiser shall be confirmed
by RO Head. Skill test need not be conducted again in case an appraiser has already passed the skill test
conducted by the bank earlier.
 Security Deposit to be furnished by the Jewel Appraiser –

Type of Jewel Appraiser Gold Loan exposure of the Branch Security deposit

Branch Regular Appraiser Up to Rs. 10 Crore Rs.50000.00

Above Rs. 10 Crore – up to Rs. 20 Crore Rs.100000.00
Above Rs. 20 Crore – up to Rs. 50 Crore Rs.150000.00
Above Rs. 50 Crore Rs.200000.00
RO Panel Appraiser Rs. 25000

 Letter of Appointment by RO and communication sent to the Jewel Appraiser by the Branch, duly
executed agreement & all applicable documents should be preserved at the branch in double lock,
making a note in the Security Register (NB115).

586/22 Doorstep Banking – Obtention of Digital Life Certificates (DLC) from Pensioners
 M/s PSB Alliance Private Limited offers this facility of submission of DLC for pensioners under Doorstep
Banking wherein the Agent visits pensioner’s place & generates DLC using their AADHAR number &
biometric authentication.
 In case of failure to generate in 3 attempts, the Agent obtains Life Certificate in physical form & submits
to branch for updation.

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 Initially, 100 Centres/locations have been identified at which the customers can avail this service through
the universal touch points of Call Centre, Web Portal or Mobile App.
587/22 Grant of NFB facilities to Non-Constituent Customers- Reiteration of Guidelines
 Branches / Offices may grant non-fund based facilities to those customers, who do not avail any fund
based facility from any bank in India subject to the various conditions as under:
a) Adherence to Bank’s exposure norms. Maximum exposure to non-constituent borrower shall not
exceed 3% of the capital funds.
b) Credit appraisal and due diligence is carried out as applicable for fund based facilities. CIRs
(commercial and consumer) shall be obtained as per extant guidelines.
c) The borrower has not availed any fund based facility from the Bank. However, at the time of granting
non-fund based facilities, a declaration from the customer about the non-fund based credit facilities
already enjoyed by them from other banks shall be obtained.
d) The instructions/guidelines on Know Your Customer (KYC) / Anti-Money Laundering (AML) standards
/ Combating of Financing of Terrorism (CFT) / Obligations of Banks under PMLA, 2002 are adhered to.
e) Service charges including processing charges / commission, etc., to be collected as per extant
guidelines. f) Bank Guarantee for payment of raw material and advance payment guarantee shall be
avoided.
588/22 Continuation Of Concessional Rate Of Interest For All Gold Loan Schemes Till 31.03.2023.
589/22 Renewal of IBA Group Health Insurance Policy for the Retirees for the year 2022-23
590/22 Implementation of pre paid card management package to Branches/ROs/Cos through Single Authentication
System (SAS)
591/22 TIN 2.0 - TAX INFORMATION NETWORK
 TIN 2.0 will enable taxpayers to make payment through various modes like Internet Banking, Debit Cards,
Over the Counters of the branches of authorized banks, NEFT/RTGS, UPI, Wallet, Pre-Authorization
(Schedule Transaction) and Bulk Challan Payments etc. which will facilitate ease of direct tax payment.
 TIN 2.0 will replace the existing Online Tax Accounting System (OLTAS) with certain enhancements and
modifications in the existing system and processes w.e.f. 01.10.2022
 All our Branches are authorized to collect Direct Taxes
 Challans are valid only for 15 days from the date of Challan Creation Date
592/22 IBA MEDICAL INSURANCE POLICY FOR SERVING EMPLOYEES – FINAL OPPORTUNITY FOR SUBMISSION OF
CLAIMS RELATING TO THE POLICY PERIOD 2021-22
593/22 Central Sector Interest Subsidy Scheme (CSIS) to provide full Interest Subsidy during the period of moratorium
on Education Loans availed by students belonging to Economically Weaker Sections – Submission of claims for
FY 2021-22 – TIMELINES for OCTOBER MONTH from 11.10.2022 to 31.10.2022
594/22 Extension of Concessional ROI of 25bps under Housing Loans (all variants) where score band as per Canara
Retail Grade - CRG-1>80 i.e., Low Risk, for further period from 01.10.2022 till 31.12.2022
596/22 Revision of Interest Rates on Small Savings Schemes w.e.f. 01.10.2022 to 31.12.2022 for Q3 of FY 2022-23
 Senior Citizen Savings Scheme(SCSS) – 7.6% p.a.
 Public Provident Fund Scheme (PPF) -7.1% p.a.
 Kisan Vikas Patra (KVP) -7.0 % p.a. (will mature in 123 months)
 Sukanya Samriddhi Account Scheme - 7.6% p.a.
597/22 Empanelment of advocates – modification in delegation of powers.
 Circle Head – CAC is delegated with the powers to permit empanelment of Advocates (Except Ex-
employees of our Bank, Retainers and HO panel Advocates).
 For empanelment of Ex-employees of our Bank, Retainers and HO panel Advocates, Circle shall forward
recommendations of Circle Head CAC to the General Manager, RL & FP Wing, HO for permission.
598/22 Obtention of Life Certificates from Pensioners – Online (Jeevan Pramaan) and Offline (Physical Appearance)
Submission
599/22 Modification of existing guidelines with respect to fixed EMI and elongated tenor for Housing Loans
(Including Housing Loan to NRIs)
 As per existing guidelines, whenever there is any change in RLLR, MCLR or any other benchmark rates,
rate change is effected in the loan account by revising installment and keeping loan tenure constant. The
subject functionality shall be based on customer consent as a One-time opt-in request &
Branches/Offices to ensure that same to be incorporated in sanction memorandum while opening of new
HL account in LAPS accordingly till the functionality is automated. An SMS shall be sent for all the eligible
existing Housing Loans borrowers (including Housing Loan to NRIs) centrally for opting repayment tenor
extension by keeping EMI fixed. Borrowers who have marked their consent as “Yes”, the consent data
shall automatically flow to SAS package.
 Respective sanctioning authority as per the Delegation of Powers for sanctioning Housing loans can
permit the same.
 Maximum repayment period of 30 years or 70 years age of the Borrower/Joint Borrower, whichever is
earlier? However, sanctioning authority to ensure that the existing guidelines related to Exit age of the
borrower by considering the age of the Youngest borrower/ Legal Heir / Close Relative who is joining the
loan as joint borrower shall continue .
 In case of NPA accounts, where overdues are cleared and account is upgraded such housing loans are
also eligible for switch over. In case of existing housing loan accounts, Switch over charges are not
applicable for the Housing Loan borrowers opting for Fixed EMI conversion/elongation of repayment

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tenure and in case of new housing loan accounts Processing charges are as applicable to the respective
product.
 Overseeing Executive for Retail Loans at respective Regional Office has to ensure that as per the report
in SAS package the entire housing loan borrower’s requests for elongation of tenor are attended by the
branch within 7 working days.
600/22 Introduction of New Internal Risk Rating Model – “CIRM Hybrid Model” for Domestic borrowers having
exposure above Rs. 2 Crore to Rs. 5 Crore.
 Introduction of CIRM Hybrid Model for Domestic borrowers having exposure above Rs. 2 Crore to Rs.
5 Crore.
Aggregate Exposure <= Rs.2 lakhs - Portfolio Model
Aggregate Exposure >Rs.2 lakhs and <=Rs.20.00 lakhs - Small Value Model
Aggregate Exposure >Rs.20 lakhs and <=Rs.2 crore Manual Model
Aggregate Exposure >Rs.2.00 crore. Canara Internal Rating Model (CIRM)
 The risk scoring is in the range of 0 to 11 where score of ‘11’ is low risk & score of ‘0’ is high risk.
Wherever risk parameters, which are ‘Not applicable’ for scoring in such cases, the weight age will get
equally distributed to the remaining applicable risk parameters.
 Risk category-wise weight ages are as follows:

Risk Categories Weight ages

Existing borrower New borrower

Industry Risk 5% 5%
Business & Management Risk 15% 20%
Financial Risk 35% 40%
Security Coverage Risk 30% 35%
Conduct of Account Risk 15% --

 Concession of 0.25 % in applicable rate of interest in CGTMSE covered accounts upto an exposure of Rs.
200 lakh is available, subject to the condition that the ultimate interest rate shall not fall below as stipulated
above (RLLR+0.25% or RLLR + 0.50%) as the case may be.
 A reduction of 0.50% in the applicable rate of interest on loans and advances to Women Entrepreneurs
under Micro and Small Enterprises (both manufacturing & services) to be extended to new loans subject to
the condition that the ultimate interest rate shall not fall below as stipulated above (RLLR+0.25% or RLLR +
0.50%) as the case may be. New loans shall mean fresh exposures to first time borrowers of the bank. This
concession shall be applicable for the first one year only.
 Leasehold properties shall be from Govt. Body/ Govt. Institute/ Govt / Autonomous Bodies with certain
lease period, which shall be more than 10 years and there shall be clear clause about mortgaging the same
to Banks/Financial Institutions. Also, Lease Deed shall not contain any onerous clause restricting our rights
as mortgagee of leasehold rights.
 Wherever Legal Scrutiny Report (LSR) stipulates obtention of NOC from the lessor to mortgage lease hold
rights, branches/offices have to comply with the same. In case of any fall in value of Immovable Prime
and/or immovable collateral on account of revaluation, Rate of Interest has to be revised according to the
revised slab. In respect of Hybrid Security product accounts, 0.25% concession in the applicable rate of
interest to be extended only to the portion of limit/ liability covered under CGTMSE excluding the
uncovered portion of limit/ liability.
 For loans repayable more than 1 year upto 5 years and more than 5 years, the liquidity premium is to be
loaded to the Card rates additionally : Loans repayable >1 year upto 5 years – 0.40% & Loans repayable >
5 years – 0.80% .
601/22 Foreign Exchange Management (Overseas Investment) - Obtention of No Objection Certificate (NOC) from the
lender bank – Modification in guidelines.
 Detailed guidelines and delegation of powers for issuance of No Objection Certificate (NOC) in
accordance with rule 10 of Foreign Exchange Management (Overseas Investment) Rules, 2022 to
borrower (person resident in India) having an account appearing as a Nonperforming asset (NPA) or is
classified as Willful defaulter before making financial commitment or undertaking disinvestment under
Foreign Exchange Management (Overseas Investment) Rules, 2022 or the Foreign Exchange
Management (Overseas Investment) Regulations, 2022 the competent authority to issue NOC are :
Up to CO power accounts - CGM/GM-HO-CAC
HO power accounts - Respective sanctioning authority
MC power accounts - CAC of the Board.
602/22 Padho Pardesh Scheme of Interest Subsidy on Education Loans for Overseas Studies for the students belonging
to the Minority Communities – Opening of SAS package for submitting claims for Quarter Ending September
2022 Quarter (FY 2022-23) from 06.10.2022 to 31.10.2022
603/22 Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies for Other
Backward Classes (OBCs) & Economically Backward Classes(EBCs) – Opening of SAS package for submitting
claims for Quarter Ending September 2022 Quarter (FY 2022-23) from 06.10.2022 to 31.10.2022

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604/22 Rates of interest on rupee loans and advances (MCLR, RLLR, BASE RATE, STRLLR AND EBLR2) w.e.f.
07.10.2022.
605/22 “Krishi Sahasya” - Fresh Core Agriculture Term Loan Disbursement Campaign- March 2023 from 01.10.2022 to
31.03.2023.
606/22 Revision in Interest Rates on Domestic & NRO Term Deposits w.e.f. 07.10.2022.
607/22 Revision in Interest Rates on NRE Term Deposits w.e.f. 07.10.2022.
608/22 Revision in Interest Rate on Canara Tax Saver Deposit Scheme w.e.f. 07.10.2022
Interest rate on Canara Tax Saver Deposit Scheme effective from 07.10.2022: 7.00% for a period of 5
years. Senior Citizens are eligible for 0.50% and Employees/Ex-employees/Ex-employees Senior Citizens
are eligible for 1% additional rate of interest over and above the applicable interest rate under Canara
Tax Saver Deposit Scheme (The maximum interest rate that is extended to Ex-Employee Senior Citizen is
8.00% at present).
609/22 Waiver of Service charges for submission of Life Certificate by the pensioners through Doorstep Banking
Services from 01.11.2022 to 31.12.2022.
610/22 Memorandum of Understanding (MoU) with the following agencies for entrusting Due Diligence Services for
Micro, Small and Medium Enterprises: 1. M/s. Infomerics Analytics and Research Private Limited 2. M/s. CRIF
Solutions Private Limited .
 As per extant guidelines, obtention of External Due Diligence from empanelled agencies is mandatory for
MSE units who approach our Bank for the first time seeking credit facility requirement of above Rs. 10
lakhs and are eligible to be covered under CGTMSE.
 As per the contracted terms with M/s.Infomerics Analytics and Research Private Limited and M/s. CRIF
Solutions Private Limited, due diligence reports (soft copy) has to be furnished by the respective agencies
within 3 working days from the date of requisition for such reports received on their designated e-mail
ids by our Branches/Offices.
 In the event of failure on part of M/s.Infomerics Analytics and Research Private Limited and M/s. CRIF
Solutions Private Limited to furnish the report within the contracted turnaround time of 3 working days
as mentioned above, Branches/Offices may release reduced payment against such specific reports
obtained with delay, as under:
TAT for Providing Due Diligence Report Charges
Within 3 days Contractual Charges will be paid
After 3 days to 7 days 50% of the Contractual Charges will be paid
Above 7 days Nil – No Charges will be paid

Agency Amount Bracket Charges (in Rs.)

M/s. Infomerics Up to Rs. 25 Lakhs 5,500
Analytics and Research Above Rs. 25 Lakhs upto Rs. 75 Lakhs 7,500
Private Limited Above Rs. 75 Lakhs 9,500
M/s. CRIF Solutions Up to Rs. 75 Lakhs 5,500
Private Limited Above Rs. 75 Lakhs 5,500

611/22 Celebration of “October 2022” as SC/ST month – extending credit facilities to SC/STs in commemoration of
birth anniversary of Mahatma Gandhi.
612/22 Renewal of special package under retail lending schemes to the employees of India’s premier educational
institutions/colleges and central universities coming under MoE & MOHFW and which are eligible to be
financed by higher education financing agency (HEFA) – on all india basis
 Sanctioning of Canara Budget Loans can be permitted by the respective Branches with higher quantum
of loan up to 25 months’ gross salary subject to a maximum of Rs. 20.00 Lakh with risk gradation up to
“Moderate Risk” as per CRG under this package. Proposals falling under “High Risk” category shall be
referred to RO Head-CAC & above authorities, subject to ensuring suitable risk mitigants are in place.
 100% waiver in the applicable processing charges for Housing Loans, Canara Vehicle Loans (Four wheeler
& Two Wheeler), Canara Green Wheels and Canara Budget Loans.
 Concession in ROI under Housing Loans, Vehicle Loans (including two wheeler) and Canara Budget Loans.
The embargo on sanctioning of Retail Loans by the branches due to NPA levels is not applicable for the
loans sanctioned under this Special Package.
 Housing Loans: Eligibility-Confirmed employees with 1 year of regular service. For availing the Housing
Loan, the applicant should comply the eligibility criteria specially the income criteria as per scheme
norms. Concessional ROI at RLLLR i.e. presently 8.80%, irrespective of the borrower (i.e. Women/Others)
involving interest concession of maximum 50 basis points for borrowers having CRG Risk Grade up to
‘Moderate Risk (CRG:3)’. For the proposals falling under HL-CRE, 50 bps extra to be charged.
 Canara Vehicle (Four Wheeler):- 90% of the total value (inclusive of invoice value, life tax, and registration
charges insurance premium) with 10% margin irrespective of the loan amount. For old/used vehicles as
per the scheme norms can be sanctioned. Concessional ROI @ RLLR+0.20% i.e. presently 9.00%
irrespective of the category of the borrowers (i.e. Women / Others) involving interest concession of
maximum 50 basis points for borrowers having CRG Risk Grade up to ‘Normal Risk (CRG:2) & Moderate
Risk (CRG:3)’ only. Customers falling under High Risk Category shall be charged as per prevailing Card
Rates

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 Canara Vehicle (Two Wheeler):- 85% of the total value (inclusive of invoice value, Life Tax, registration
charges, insurance premium and other accessories) for the existing as well new customer OR To the
extent of 50% of their annual net income in the immediate previous year, whichever is less, by duly
maintaining the required NTH. Concessional ROI, involving uniform concession of 25 bps from the
applicable rate, irrespective of the category of the borrower up to ‘Moderate Risk’ (CRG:3) only as per
CRG.
 Canara Budget:- Higher quantum of loan up to 25 months’ gross salary subject to a maximum of Rs.
20.00 Lakh to the confirmed employees. ROI - With salary tie-up: RLLR+1.45% i.e. presently 10.25%,
involving an interest concession of 295 bps. Without salary tie-up: RLLR+4.40% i.e. presently 13.20%,
involving an interest concession of 100 bps.
 In case the account is taken over by other Banks/FIs, concession in ROI / Charges extended for the last
one year to be recovered before closure. This shall be part of the sanction conveying letter and accepted
by the borrower. 2. All the concessions are applicable for fresh loans only.
613/22 Retail Lending Policy Of The Bank For The FY 2022-23 – Updated Till 30.09.2022

614/22 Policy On Insolvency & Bankruptcy Code (Ibc), 2016 For The Fy 2022- 2023 – Modifications
 The minimum fees structure per Borrower (not per account) for the Interim Resolution Professional/
Resolution Professional (appointed on or after 01.10.2022) for CIRP of CD shall be as per the provisions
of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)
Regulations, 2016, which is presently as under :

Quantum of Claims Admitted Minimum Fee Per Month (Rs.

lakh)
Less than or equal to Rs. 50 crore 1.00
More than Rs.50 crore but less than or equal to Rs.500 crore 2.00
More than Rs.500 crore but less than or equal to Rs.2500 crore 3.00
More than Rs.2500 crore but less than or equal to Rs.10000 crore 4.00
More than Rs.10000 crore 5.00

 Circle/Branches shall negotiate with the IRP/RP/IPE to ensure that our share of fee is within the above
limits as enumerated. In exceptional cases, (including because of introduction of minimum fees) where
our share of fee is higher than the above rates, prior approval shall be obtained from the CGM-HO-CAC/
ED-CAC as the case may be.
 The request of RP for Performance Linked Incentive (for resolution plan approved by the CoC on or after
01.10.2022), as per the provisions of IBC Regulations, shall be placed to the respective Sanctioning
Authorities, if the majority of the CoC members agree to consider the same and same shall be made as
part of CIRP cost. At present, Performance Linked Incentive provided under the IBC Regulations are as
under: Performance-linked incentive fee for timely resolution –

Time period from insolvency commencement date Fee as % of Realizable Value

Less than or equal to 165 days 1.00
More than 165 days but less than or equal to 270 days 0.75
More than 270 days but less than or equal to 330 days 0.50
More than 330 days 0.00
 The performance-linked incentive fee for value maximization may be paid to the resolution professional
at the rate of one per cent of the amount by which the realisable value is higher than the liquidation
value, after approval of the resolution plan by Adjudicating Authority on commencement of payment to
creditors by the resolution applicant.
615/22 Standard Operating Procedure (SOP) for Linking Interest Index of Interest Subvention Scheme for Women SHGs
under Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM).
 Minimum loan amount for 1st dose/1st year has been increased from Rs 1.00 lakh to Rs 1.50 lakhs and
for 2nd dose/2nd year from Rs 2.00 lakhs to Rs 3.00 lakhs.
 Women SHGs under DAY NRLM in rural areas will be eligible for Interest Subvention up to Rs 5.00 lakh
during the FY 2022-23. For loan up to Rs. 3.00 lakhs, interest to be charged at 7% p.a. & outstanding
credit balance up to Rs 3.00 lakhs will be subvented at a uniform rate of 4.50 % p.a during FY 2022-23.
For loan above Rs 3.00 lakhs and up to Rs 5.00 lakhs, interest to be charged at interest rate equivalent
to their 1 year MCLR or any other external benchmark based lending rate or 10% per annum, whichever
is lower & Outstanding credit balance above Rs 3.00 lakhs and up to Rs 5.00 lakhs will be subvented at
a uniform rate of 5.00 % p.a during FY 2022-23.
 In order to facilitate women SHG members to graduate to entrepreneurs, banks may consider extending
loans up to Rs.10 lakhs to individual members of select matured well performing SHGs. One woman in
every SHG under DAY-NRLM may be provided a loan up to Rs.1.00 lakh under the MUDRA Scheme, if
she is otherwise eligible. OD facility of Rs.5000 to every woman SHG member having PMJDY account.
616/22 “PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)” scheme for Street vendors – Reiteration/clarification
of existing guidelines with regard to the 3rd tranche loans.

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 3rd tranche loans under the scheme of upto Rs. 50,000/- may be considered to the eligible beneficiaries,
subject to successful repayment of the 2nd tranche loans extended to them for upto Rs. 20,000/-. Bank
shall ensure marking of the 2nd loan as closed, for processing the 3rd loan. However, the facility under
3rd tranche with the enhanced limit may be made available only after completion of minimum repayment
period of 6 months under 2nd tranche loans. If the street vendor repays the loan earlier, he would have
to wait till the minimum repayment period fixed for the loan i.e. 6 months is lapsed for satisfying the
eligibility criteria under the next higher loan linked to 3rd tranche. The loans which are settled by
CGTMSE are not eligible for the 3rd loan and shall not be closed on the portal by the Bank.
 Loans extended under the scheme are unsecured and guaranteed by CGTMSE without payment of any
guarantee fee. Hence, no additional security other than DPN is envisaged. Min: Rs. 30,000/- Max: Rs.
50,000/- for a period of 36 months with NIL moratorium no prepayment penalty.
617/22 Fire Safety Measures – Important Guidelines
618/22 Safe Deposit Lockers
619/22 Savings Bank Account - Eligibility For Opening– Reiteration Of Guidelines
Branches shall not open a Savings Bank deposit account in the name of Government departments/bodies
depending upon budgetary allocations for performance of their functions/Municipal Corporations or Municipal
Committees/Panchayat Samitis/State Housing Boards/Water and Sewerage/Drainage Boards /State Text Book
Publishing Corporations/Societies/Metropolitan Development Authority/State/District Level Housing Co-
operative Societies, etc. or any Political Party or any trading/business or professional concern, whether such
concern is a Proprietary or a Partnership firm or a Company or an Association and Entities other than Individuals,
Karta of HUF and Organizations/Agencies listed hereunder:
1) Primary Co-operative Credit Society which is being financed by the Bank.
2) Khadi and Village Industries Boards.
3) Agriculture Produce Market Committees.
4) Societies registered under the Societies Registration Act, 1860 or any other corresponding law in force in a
State or a Union Territory except societies registered under the State Co-operative Societies Acts and specific
state enactment creating Land Mortgage Banks.
5) Companies licensed by the Central Government under Section 8 of Companies Act, 2013 or Section 25 of
Companies Act, 1956 or under the corresponding provision in the Indian Companies Act, 1913 and permitted, not
to add to their names the words ‘Limited’ or the words ‘Private Limited’.
6) Institutions other than those mentioned in section 28(h) and whose entire income is exempt from payment of
Income-tax under the Income-Tax Act, 1961.
7) Government departments / bodies / agencies in respect of grants/ subsidies released for implementation of
various programmes / Schemes sponsored by Central Government / State Governments subject to production of
an authorization from the respective Central / State Government departments to open Savings Bank account.
8) Development of Women and Children in Rural Areas (DWCRA).
9) Self-help Groups (SHGs), registered or unregistered, which are engaged in promoting savings habits among
their members.
10) Farmers’ Clubs – Vikas Volunteer Vahini – VVV.

620/22 DAF-SDSM Credit Guarantee Scheme for Subordinate Debt (CGSSD), launched by CGTMSE (Credit Guarantee
Fund Trust for Micro and Small Enterprises) – Modifications in existing guidelines, in line with the Circular no.
201/2022-23 dated 20.04.2022 and latest FAQs of CGTMSE issued in this regard.
 The scheme is applicable for those MSMEs whose accounts have been standard as on 01.01.2016 and
have been in regular operations, either as standard accounts or as NPA accounts during the financial year
2016-17, 2017-18, 2018-19 and 2019-20 even if they did not remain in regular operation in FY 2020-21 &
FY 2021-22 provided such accounts are viable as per Bank’s assessment and expected to come out of
financial stress by availing this facility. Accounts opened after 01.01.2016 are not eligible under the
scheme.
 In cases where recovery proceedings are underway and banks assess that with the facilities provided
under the scheme the account would be viable, the banks shall keep on hold/ keep under suspension the
recovery proceedings before going ahead with restructuring etc.
 Under the Sub-debt scheme, finance shall be extended to support the promoter(s) of the distressed
MSME units through a debt facility of up to 50% of the promoter contribution (equity plus debt) or Rs 75
lakh whichever is lower. The borrowers who had earlier availed 15% of the promoters’ stake are allowed
to avail additional 35% of the promoters’ stake, provided the overall maximum benefits availed under
CGSSD does not exceed ₹75 lakh .
 Branches/offices should strictly ensure that the sub-debt /credit released to the promoter is brought
back as equity/quasi equity/sub-debt in the MSME unit. Chartered Accountant’s certificate/
subsequently filed Audited financials, evidencing infusion of the CGSSD loan extended as such equity
/quasi equity /sub debt in the MSME unit has to be obtained in this regard.
 Delegation – Next Higher Authority under whose powers the proposal would otherwise fall as per extant
guidelines of the Bank.
621/22 ECGC Cover For Stand-By Limits Under Gold Card Scheme And Adhoc Limits Sanctioned By Bank Under ECIB

 ECGC is offering, the reduced percentage of cover of 50% under ECIB-WTPC AND ECIB-WTPS where - The
limits are sanctioned under Multiple banking arrangements or - PC/PS limits are combined with CC limits

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 Canara Institute of Bank Management, Manipal

or - Stand-by limits/ ad-hoc limits/limit under gold card scheme are sanctioned or - No personal guarantee
or promoters/directors/partners/others is available or only personal guarantees are provided without
any other collateral security or - Collateral Security is in the form of second charge on Fixed assets with
first charge for other facilities.
 If the total of the regular limit, stand-by limit and adhoc limit sanctioned to an exporter under GCS or the
total of the regular limit and adhoc limit sanctioned to an exporter other than under GCS, is beyond the
ABF of the particular exporter account, normal percentage of cover (as applicable for the bank and the
subject account) would also be extended on the ad-hoc limit under ECIB by way of
acknowledgement/approval of limit, as the case may be, as per extant guidelines, be it
sole/multiple/consortium arrangement. However, the cover would be restricted to ad-hoc limits to the
extent of 20% of the regular limit or to the extent of the available vacancy between the regular limit
(including stand-by limit, if applicable) and the ABF as per the sanction, whichever is higher.
622/22 Coverage of eligible education/skill loans sanctioned under CGFSEL & CGFSSD for September 2022 quarter
623/22 Automation Of Collection Of Project Appraisal Charges
624/22 Restriction of Payment through Cheques for payment – SNA Accounts
 No Cheque Books Facility to Implementing Agencies in case of SNA Accounts.
 The Cheque Book Facility to SNA Parent as well Child accounts stand withdrawn with immediate effect.
625/22 Online Submission of Minutes of Monthly Staff Meeting through SAS
626/22 Implementation Of Credit Card Requested Through IB, Individual Credit Card Limit Modification, Fresh
Corporate & Secured Credit Card Application - Processing, Sanction And Review Through Laps
627/22 Reduction of Timeline for Withdrawal from NPS Scheme from T+4 days to T+2 Days for the benefit of
subscribers
Timeline for settlement of Withdrawal requests of subscribers at the time of exit from NPS scheme reduced from
T+4 to T+2 working / settlement days.
For subscribers associated with Protean E-Gov Technologies Ltd CRA the requests authorised up to 10:30 AM will
be settled on T+2 Days basis.
For subscribers associated with KFin Technologies Ltd and CAMS CRAs the requests authorised up to 11:00 AM
will be settled on T+2 days basis
628/22 Incentive for providing service to non-chest branches under linkage scheme – Clarification of RBI guidelines.
The service charges being levied by Large Modern Currency Chests on non-chest bank branches for remittance
of cash per packet of 100 pieces has been enhanced from the existing Rs.5 per packet to Rs. 8 per packet plus
applicable taxes.
629/22 RBI Master Circular – Facility for Exchange of Notes and Coins
630/22 Online booking of holiday home for employees /ex employees.
631/22 Introduction of a format “NF 1046 - consent letter to be obtained from the tenant/s wherever tenanted
properties are mortgaged as securities”
 “When a mortgage is created on a property which is already leased/rented to a third party, in the event
of the Bank deciding to enforce mortgaged asset, it can do so subject to the existing lease/tenancy. Even,
SARFAESI Act does not empower Bank to evict the tenant/lessee (created prior to mortgage) and Bank
has to take recourse observing due process of law through eviction proceedings”. In order to address the
underlying impediment for accepting tenanted properties as securities by virtue of the guidelines
elucidated above, Bank has now devised “NF-1046 -Consent letter to be obtained from the tenant/s
wherever tenanted properties are mortgaged as securities” which has to be invariably obtained at the
time of execution of the documentation itself (as a precursor to the disbursement of sanctioned
facilities), wherever tenanted properties are encumbered as securities under schematic/non-schematic
MSME Credit facilities.
 Branch/Office shall ensure to issue notice to the tenant/s to vacate the property after taking Symbolic
Possession of the same under the SARFAESI Act by giving 30 days notice to the tenant/s, asking them to
vacate the secured asset (i.e. the encumbered tenanted property) before completion of the said 30 days
in terms of the contents of the consent letter executed by such tenant/s.
632/22 Standard Operating Procedure (SOP) for acceptance of Special Credit Linked Capital Subsidy ( SCLCS ) claims of
SC-ST MSEs of Service/Manufacturing Sector.
 The Special Credit Linked Capital Subsidy Scheme (SCLCSS) has been implemented with effect from
17.05.2017, whereby the eligible SC/ST MSEs are provided subsidy of 25% (with the overall ceiling of Rs.
25 lakhs on the subsidy) under National SC/ST Hub (NSSH) for procurement of plant and
machinery/equipment through credit (in the form of Term Loans),with the objective to promote setting
up of new enterprises and support the existing enterprises in their expansion for enhanced participation
in the public procurement.
633/22 ------
634/22 Livery To Subordinate Cadre Employees
Livery to Sub-ordinate cadre employees:
Terry cot Livery [for 3 sets once in 2 years (inclusive of stitching charges)] - 7,500
Woolen Livery [for 1 set once in 3 years (inclusive of stitching charges)] - 4,600
Shoes & Socks to Sub-staff & House-Keeper-cum-Peons and Armed Guards/ Security Guards:

Sub-staff and HKPs Shoes - Once in 2 years Rs.1500

Socks - Two in 2 years Rs.100

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 Canara Institute of Bank Management, Manipal

Armed Guards/Security Guards Shoes - Once in 2 years Rs.2000

Socks - Two in 2 years Rs.150
Other Items for Armed Guards/ Security Guards: Rs. 2000 (Once in 2 years) for the items :-

Woolen Beret Once in a year

Lanyard & Whistle Once in 2 years
Belt, Buckle & Badge Once in 3 years
Leather Pouch (only for Armed Guards) Once in 3 years
Shoulder Badge Once in 3 years
Cap Badge/ Pagri Badge Once in 3 years
Pagri (only to Sikhs) Once in a year
Woolen Jersey Once in 3 years
Name Plate Will be provided by the Bank

635/22 Reimbursement of Lodging Expenses to Officers upto Scale III under Regulation 41 (4) (b) of CBOSR, 1979
 Board of Directors have permitted revision in limits regarding reimbursement of lodging expenses to
Officers upto Scale III who stay in Non ITDC Hotels with immediate effect as under:
Grade of Officers Eligibility Maximum Room Tariff Permissible (Exclusive of
Admissible Taxes)

Major “A” Area-I Other places

Class cities
Junior Management 1 Star Hotel (Non AC) 2600 2100 1600
Grade Scale-I
Middle Management 2 Star Hotel (Non AC) 3400 2300 1800
Grade Scale-II & III
636/22 MSME Sulabhs – Functioning & Adherence to Standard Operating Procedure (SOP)– Reiteration of guidelines.

637/22 Extension of cut-off date for replacement of PPA with ePA - upto 31.10.2022.
638/22 Accounting Of Fixed Assets Of The Bank – Reiteration Of Guidelines
 Furniture & Fixtures Circle to submit SAFF Statement, NF 337 along with Original Bills, Sanction Note, to
Head office for Capitalization on a weekly basis and in no case there should be delay in submission of
documents beyond 15 days from the date of debit of SA- F&F GL.
 Staff shall submit the Original Bills to Sanctioning Office within 4 days from the date of receipt of the
amount by the Staff / Vendor. Regional offices should submit the Documents including Original Bills
within 2 days from the date of receipt of the Documents from Staff. Circle offices shall submit the
documents within 4 days from the date of Debit to SA-F&F Head .
639/22 Introduction of new slabs with higher Rate of Interest for Savings Bank Deposits (Domestic / NRO / NRE)
w.e.f. 21.10.2022.
 For outstanding Balance of Rs. 5 Cr to less than Rs 10 Cr ROI 2.95 %
 For outstanding Balance of Rs. 10 Cr to less than Rs 100 ROI Cr 3.05 %
 For outstanding Balance of Rs. 2000 Cr & above ROI 4.00 %
640/22 Modification In Housing Loan Scheme Guidelines .
 Where entry age of the Borrower/s is 60 years & above and up to 70 years at the time of availing the loan
and repayable within 75 years the following shall be adhered - a) On case to case basis, respective
delegated authority i.e., RAH Head and above authorities can sanction housing loan without insisting for
Legal heir/earning close relative for joining the loan as joint borrower subject to complying of required
NTH, repayment capacity and other housing loan scheme guidelines. In such cases, no variations shall be
permitted. -Wherever waiver of legal heir/earning close relative is permitted in such cases, while
permitting Fixed EMI with Tenor elongation on the request of the borrower where entry is 60 years and
above up to 70 years of exit age, Sanctioning authority has to ensure to maintain minimum NTH of 30%.
 In cases where, borrower is not able to comply with the housing loan scheme guidelines, such proposals
may be permitted by RAH Head and above authorities up to their delegated powers subject to the
following: i) The loan has to be availed jointly with earning Legal heirs only. ii) In case of non-existence of
earning Legal heir/s, earning Close Relative/s to join the loan as joint borrower/s. iii)Sanctioning Authority
to ensure overall repayment capacity of borrower/s along with individual repayment capacity of Legal
heir/s or Close relative/s. i.e., minimum NTH of 25% or Rs.10000/-p.m. whichever is higher.
641/22 -------
642/22 New Business Approval Committee (NBAC) At Head Office – Additional Guidelines

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 Canara Institute of Bank Management, Manipal

 Composition : Chairman- CGM/GM, LCCW CGM/GM, MCCW CGM/GM, Risk Management Wing (Wing
Head) CGM/GM, Financial Management Wing (Wing Head) CFO (if CFO is other than Wing Head of FM
Wing) Senior Most CGM/GM of other Credit Wings GM, RMW other than Wing Head shall be special
invitee.
 The quorum for the meeting shall be 4 (Four) of which presence of Chairman, CGM/GM, MCCW,
CGM/GM, RM Wing (Wing Head), CFO shall be mandatory. Role of the presenting GM is limited to the
proposals pertaining to his/her Wing only. Convenor of CGM/GM-HO-CAC (Designated executive from
LCCW) shall be the convenor for the NBAC (CGM/GM-HO) also.
643/22 Modifications in guidelines on delegation of powers for permitting Foreign Currency Loans to Residents
(FCLR) and permitting concession in rate of interest for FCLR Exposures.
 CGM/GM-HO-CAC & above authorities are empowered to permit FCLRs as well as to consider conversion
of existing Rupee Term Loan with us/FIs into FCLR term loans upto their respective delegated powers
(both fresh as well as by earmarking the existing fund based rupee limit) subject to fund clearance from
Integrated Treasury Wing.
 Concession in rate of interest on a case-to-case basis may be permitted as under:
Authority to permit concession Subject to minimum ROI of
CGM/GM-HO-CAC ARR + Bank’s Credit Margin + 100 bps
ED-CAC & above authorities ARR + Bank’s Credit Margin
644/22 “PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)” scheme for Street vendors – Modification in
guidelines linked to interest subsidy claims.
 The street vendors availing loans under the scheme are eligible to get an Interest Subsidy @ 7% for
all the loans i.e. 1st, 2nd and 3rd loans. Interest Subsidy claims to be paid on quarterly basis.
 Interest subsidy claims will be paid only for standard accounts on the respective claim dates and
only for the period during which the account has remained Standard.
 Interest subsidy claims on all loans under the scheme will be paid till March, 2028.
645/22 Multiple Term Loans in single application exempted from mandatory generation of Loan documentation
through LAPS
646/22 Enhancement Limits for e-Mandate has been enhanced to ₹15,000/- (Rupees Fifteen Thousand only) per
transaction on Recurring Card Transactions without second factor authorization and Product Enhancement of
SiHub (Standing Instruction Hub) Solution has been implemented
647/22 Credit guarantee fund for micro units (CGFMU) –for Pradhan Mantri Mudra Yojana (PMMY) and Self Help
Group (SHG)
648/22 Submission of life certificate by our ex-employee pensioners & their family pensioners for the year 2022.
649/22 ECAI Rated Accounts – Need to ensure Bank’s name with Corresponding Credit Facilities in Rating agency
Press Release
 RBI advised that a bank loan rating without the above disclosure by the ECAI shall not be eligible for
being reckoned for capital computation by banks.Bank loan rating without the above disclosure by the
ECAI will be treated as ‘Unrated’ therefore will attract risk weights of 100 percent or 150 percent as
applicable in terms of extant regulatory instruction for Credit Risk Weighted Assets Computation.

650/22 Revision in Interest Rates on Domestic Term & NRO Term Deposits w.e.f. 31.10.2022.
651/22 Revision in Interest Rates on NRE Term Deposits w.e.f. 31.10.2022.
652/22 Revision in Interest Rate on Canara Tax Saver Deposit Scheme w.e.f. 31.10.2022.
653/22 Credit card Issuance - Re-iteration of Guidelines.
 Credit Card Limits shall be processed after duly obtaining Credit Card Application, Customer consent
& required documents as per extant guidelines. Customers should be provided with a Key Fact
Statement along with the credit card application containing the important aspects of the card such as
rate of Interest, quantum of charges, among others.
 In case of rejection of a credit card application, customers should be conveyed in writing the specific
reason/s which led to the rejection of the application.The MITC (Most Important Terms and
Conditions), should be provided to the customer at the time of on boarding and each time, a condition
is modified with notice to the customer. The MITC and copy of the credit card application signed by
the customer and recommended by the branch official should be physically handed to the customer
obtaining the acknowledgment toward the receipt by the customer, should be filed and preserved
along with the Credit card application.Unsolicited Credit Cards shall not be offered to the customers
without seeking explicit consent.
654/22 Fresh guidelines in respect of Takeover of loans with exposure up to Rs.100.00 Crores (including proposed
enhancement) other than Agriculture and Retail Lending - Review and Continuation of guidelines.
655/22 Instruction sheet for benefits of convergence under PM formalisation of micro food processing enterprises
(PMFME) scheme with agriculture infrastructure fund (AIF) scheme.

परिपत्र साि: Gist of Circulars 131

 Canara Institute of Bank Management, Manipal

 "PM Formalisation of Micro food processing Enterprises (PMFME) Scheme" for providing financial,
technical and business support for upgradation of micro food processing enterprises in the country.
Credit Linked Subsidy @35% for establishment of micro food processing unit with a maximum limit of
Rs.10 lakh and common infrastructure with maximum limit of Rs.3 Cr would be provided for upgradation
or setting up of new unit.
 The beneficiaries under PMFME Scheme seeking credit linked subsidy would be able to avail additional
benefit of Interest Subvention @3% on the interest rate being charged by the banks apart from the 35%
subsidy being provided under PMFME Scheme.
656/22 Procedure for preferring Insurance Claim for Personal Accident Death claims, Baggage claim and Purchase
Protection under CANCARE Policy.
 Renewal of Insurance Policy with to M/s ORIENTAL INSURANCE COMPANY LTD w.e.f. 08.08.2022.
 Can care Policy comprises of: (1) Insurance cover for Death due to accident (2) Baggage Insurance cover
and (3) Purchase Protection cover.

Credit card Canara Visa / Credit card Canara Visa Debit card Canara Visa /
Mastercard / RuPay / Mastercard / RuPay Mastercard / RuPay
Eligible Variant A. Classic B.Standard C. A. World, B. Select, C. A. Platinum B. Business ,
of Cards Corporate including add-on cards Platinum, D. Gold C. Select D. Signature
and any other new variants to be including add-on cards Cards and any other
launched with any of the card and any other new new variants to be
network associates variants to be launched launched with any of
with any of the card the card network
network associates associates
RISK TO BE COVERED
Death Due To Insurance Cover For Death Due Insurance Cover For Insurance Cover For
Accident To A) Air Crash: 1. Rs.4,00,000 – Death Due To A) Air Death Due To A) Air
Without Any For Self 2. Rs.2,00,000 – Spouse Crash: 1. Rs.8,00,000 – Crash: 1. Rs.8,00,000 –
Geographical B) Other Than Air Crash: 1. Rs. For Self 2. Rs.4,00,000 – For Self 2. Rs.4,00,000 –
Restriction 2,00,000 – Self 2. Rs. 1,00,000 – Spouse B) Other Than Spouse B) Other Than
Spouse Air Crash: 1. Rs. Air Crash: 1. Rs.
4,00,000 – Self 2. Rs. 4,00,000 – Self 2. Rs.
2,00,000 – Spouse 2,00,000 – Spouse
Baggage Rs.25,000 – Per Card Rs.25,000 – Per Card Rs.25,000 – Per Card
Insurance &
Purchase
Protection Cover
Timelines to be adhered for Claim intimation:
Time lines for intimation of Time lines for intimation Maximum Time lines
claim by Legal Heirs/ Nominee reporting by Branch to permitted to the Bank
to Branch ‘NFS & RuPay for intimation of claim
Reconciliation Section, to the Insurer as per the
Reconciliation Wing, Policy terms
HO’
Personal Within 90 days from the date of Branch to intimate the Within 15 days from the
Accident Cover Death claim immediately to date of intimation of
NFS & RuPay claim by Legal Heir /
Reconciliation Section, Nominee to the Bank.
(Reconciliation Wing:
HO), atleast within 5
days from the date of
intimation of claim by
the Legal Heir/ Nominee
to the branch.
Timelines to be adhered for submission of claim Documents:
Time lines for submission of claim along Maximum Time line for submission of
with required documents by Branch to Claim Documents by Bank to Insurer (As
‘NFS & RuPay Reconciliation Section, per Policy Terms)
Reconciliation Wing, HO
Personal Within 30 days from the date of Within 45 days from the date of
Accident Cover intimation of claim by the Legal Heir/ intimation of claim by the Legal Heir/
Nominee to the Branch. Nominee to the Bank.
657/22 Procedure for preferring Insurance Claim as a Risk Mitigation measure for unauthorized Card related
transactions for Loss on Card.
 This policy covers frauds committed by fraudsters causing loss to Debit/ Credit/ Prepaid Card Holders/
ITPC. The maximum amount of loss covered per card is as below:

परिपत्र साि: Gist of Circulars 132

 Canara Institute of Bank Management, Manipal

Card Variant Sum Insured (INR) – Individual

(each in excess of Rs. 1,000)
Canara VISA / MASTERCARD / RUPAY Credit cards (Classic / 2,00,000
Standard / Visa Corporate Cards)
Canara VISA/MASTERCARD/RUPAY Credit Cards (Gold/ World/ 5,00,000
Platinum/ Select )
Canara Domestic/ Global Debit Cards 2,00,000
Canara Platinum/ Business/ Select/ Signature Debit Card 5,00,000
Prepaid Card – International Travel 3,00,000
Prepaid Cards (Domestic) 50,000
 The Cardholder should report the incident to Bank within 15 days from the knowledge of first incident.
Branch should ensure that the Card is hot listed immediately, positively within a maximum period of 2
working days from the date of reporting by the customer i.e., within 17 days from the knowledge of first
incident. In case if the customer is abroad, he may intimate the loss within 7 working days post reaching
the country. In respect of NRI customers, the Police Complaint/ Intimation/ FIR lodge by any
branch/office of Canara Bank to be treated as valid. Police Acknowledgement Letter / FIR is not
mandatory for claim where the loss amount is less than 50,000. Frauds committed due to negligence of
customer and Card lost in transit (delivery from issuer to end user) are not covered.
658/22 Master Circular – Priority Sector Lending (PSL) – Targets and Classification.
 The categories under priority sector are as follows: i. Agriculture ii. Micro, Small and Medium
Enterprises iii. Export Credit iv. Education v. Housing vi. Social Infrastructure vii. Renewable Energy viii.
Others
Categories Domestic commercial Foreign banks with Regional Rural Small Finance
banks (excl. RRBs & less than 20 Banks Banks
SFBs) & foreign banks branches
with 20 branches and
above
Total Priority 40 per cent of ANBC as 40 per cent of 75 per cent of 75 per cent of
Sector computed in para 2 ANBC as computed ANBC as computed ANBC as computed
below or CEOBE in para 2 below or in para 2 below or in para 2 below or
whichever is higher CEOBE whichever CEOBE whichever CEOBE whichever
is higher; out of is higher; However, is higher.
which up to 32% lending to Medium
can be in the form Enterprises, Social
of lending to Infrastructure and
Exports and not Renewable Energy
less than 8% can be shall be reckoned
to any other for priority sector
priority sector achievement only
up to 15 per cent of
ANBC
Agriculture 18 per cent of ANBC or NA 18 per cent ANBC 18 per cent of
CEOBE, whichever is or CEOBE, ANBC or CEOBE,
higher; out of which a whichever is whichever is
target of 10 percent# is higher; out of higher; out of
prescribed for Small and which a target of which a target of
Marginal Farmers 10 percent# is 10 percent# is
(SMFs) prescribed for prescribed for
SMFs SMFs
Micro 7.5 per cent of ANBC or NA 7.5 per cent of 7.5 per cent of
Enterprises CEOBE, whichever is ANBC or CEOBE, ANBC or CEOBE,
higher whichever is higher whichever is higher
Advances to 12 percent of ANBC or NA 15 percent of 12 percent of
Weaker CEOBE, whichever is ANBC or CEOBE, ANBC or CEOBE,
Sections higher whichever is whichever is
higher higher
Primary Urban Co-operative Bank
Total Priority 40 per cent of ANBC or CEOBE, whichever is higher, which shall stand increased to 75 per
Sector cent of ANBC or CEOBE, whichever is higher, with effect from March 31, 2024. UCBs shall
comply with the stipulated target as per the following milestones:
March 31, 2020 March 31, 2021 March 31, 2022 March 31, 2023 March 31, 2024
40% 45% 50% 60% 75%

Micro 7.5 per cent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure,
Enterprises whichever is higher

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 Canara Institute of Bank Management, Manipal

Advances to 12 per cent of ANBC or credit equivalent amount of Off-Balance Sheet Exposure,
Weaker whichever is higher.
Sections
 The targets for lending to SMFs and for Weaker Sections shall be revised upwards from FY 2021-22
onwards as follows :
Financial Year Small and Marginal Farmers target Weaker Sections target 2020-21
2020-21 8% 10%
2021-22 9% 11%
2022-23 9.5% 11.5%
2023-24 10% 12%
 Accordingly, from FY 2021-22 onwards, a higher weight (125%) would be assigned to the incremental
priority sector credit in the identified districts where the credit flow is comparatively lower (per capita
PSL less than ₹6000), and a lower weight (90%) would be assigned for incremental priority sector credit
in the identified districts where the credit flow is comparatively higher (per capita PSL greater than
₹25,000). The list of both categories of districts is given in Annex IA & IB. This list will be valid for a period
up to FY 2023-24 and will be reviewed thereafter. The districts other than those mentioned in Annex IA
and IB will continue to have existing weight age of 100%.
 Loans to individual farmers [including Self Help Groups (SHGs) or Joint Liability Groups (JLGs) i.e. groups
of individual farmers, provided banks maintain disaggregated data of such loans] and Proprietorship firms
of farmers, directly engaged in Agriculture and Allied Activities, viz. dairy, fishery, animal husbandry,
poultry, bee-keeping and sericulture.
 Loans against pledge/hypothecation of agricultural produce (including warehouse receipts) for a period
not exceeding 12 months subject to a limit up to ₹75 lakh against NWRs/eNWRs and up to ₹50 lakh
against warehouse receipts other than NWRs/eNWRs.
 Farm Credit - Corporate farmers, Farmer Producer Organisations (FPOs)/(FPC) Companies of Individual
Farmers, Partnership firms and Co-operatives of farmers engaged in Agriculture and Allied Activities (a)
Loans for the following activities will be subject to an aggregate limit of ₹2 crore per borrowing entity: (i)
Crop loans to farmers which will include traditional/non-traditional plantations and horticulture and
loans for allied activities. (ii) Medium and long-term loans for agriculture and allied activities (e.g.
purchase of agricultural implements and machinery and developmental loans for allied activities). (iii)
Loans for pre and post-harvest activities viz. spraying, harvesting, grading and transporting of their own
farm produce.
 Loans up to ₹5 crore per borrowing entity to FPOs/FPCs undertaking farming with assured marketing of
their produce at a pre-determined price.
 Loans for agriculture infrastructure will be subject to an aggregate sanctioned limit of ₹100 crore per
borrower from the banking system.
 Ancillary Services - Following loans under ancillary services will be subject to limits prescribed as under:
i. Loans up to ₹5 crore to co-operative societies of farmers for purchase of the produce of members (Not
applicable to UCBs) ii. Loans up to ₹50 crore to Start-ups, as per definition of Ministry of Commerce and
Industry, Govt. of India that are engaged in agriculture and allied services. iii. Loans for Food and Agro-
processing up to an aggregate sanctioned limit of ₹100 crore per borrower from the banking system.
 Loans up to ₹2 lakh to individuals solely engaged in Allied activities without any accompanying land
holding criteria.
 Loans to FPOs/FPC of individual farmers and co-operatives of farmers directly engaged in Agriculture and
Allied Activities where the land-holding share of SMFs is not less than 75 per cent, subject to loan limits
prescribed.
 Bank credit to registered NBFCs (other than MFIs) towards on-lending for ‘Term lending’ component
under agriculture will be allowed up to ₹ 10 lakh per borrower subject to conditions specified.
 All loans to units in the KVI sector will be eligible for classification under the subtarget of 7.5 percent
prescribed for Micro Enterprises under priority sector.
 Loans up to ₹50 crore to Start-ups, as per definition of Ministry of Commerce and Industry, Govt. of India
that conform to the definition of MSME.
 Credit outstanding under General Credit Cards (including Artisan Credit Card, Laghu Udyami Card,
Swarojgar Credit Card and Weaver’s Card etc. in existence and catering to the non-farm entrepreneurial
credit needs of individuals).
 Overdraft to Pradhan Mantri Jan-Dhan Yojana (PMJDY) account holders as per limits and conditions
prescribed by Department of Financial Services, Ministry of Finance from time to time, will qualify as
achievement of the target for lending to Micro Enterprises.
 Outstanding deposits with SIDBI and MUDRA Ltd. on account of priority sector shortfall.
 Export credit under agriculture and MSME sectors are allowed to be classified as PSL in the respective
categories viz. agriculture and MSME. Export Credit (other than in agriculture and MSME) will be allowed
to be classified as priority sector-

Domestic banks / WoS of Foreign Foreign banks with 20 branches Foreign banks with less than 20
banks/ SFBs/ UCBs and above branches

परिपत्र साि: Gist of Circulars 134

 Canara Institute of Bank Management, Manipal

Incremental export credit over Incremental export credit over Export credit up to 32 per cent of
corresponding date of the corresponding date of the ANBC or CEOBE whichever is
preceding year, up to 2 per cent preceding year, up to 2 percent of higher.
of ANBC or CEOBE whichever is ANBC or CEOBE whichever is
higher, subject to a sanctioned higher.
limit of up to ₹ 40 crore per
borrower.

 Loans to individuals for educational purposes, including vocational courses, not exceeding ₹ 20 lakh will be
considered as eligible for priority sector classification. Loans currently classified as priority sector will
continue till maturity.
 Loans to individuals up to ₹35 lakh in metropolitan centres (with population of ten lakh and above) and up
to ₹25 lakh in other centres for purchase/construction of a dwelling unit per family provided the overall
cost of the dwelling unit in the metropolitan centre and at other centres does not exceed ₹45 lakh and ₹30
lakh respectively. Existing individual housing loans of UCBs presently classified under PSL will continue as
PSL till maturity or repayment.
 Loans up to ₹10 lakh in metropolitan centres and up to ₹6 lakh in other centres for repairs to damaged
dwelling units conforming to the overall cost of the dwelling unit. Bank loans to any governmental agency
for construction of dwelling units or for slum clearance and rehabilitation of slum dwellers subject to
dwelling units with carpet area of not more than 60 sq.m. Bank loans for affordable housing projects using
at least 50% of FAR/FSI for dwelling units with carpet area of not more than 60 sq.m.
 Bank loans to HFCs (approved by NHB for their refinance) for on-lending, up to ₹20 lakh for individual
borrowers, for purchase/construction/ reconstruction of individual dwelling units or for slum clearance and
rehabilitation of slum dwellers, subject to conditions specified.
 Bank loans up to a limit of ₹5 crore per borrower for setting up schools, drinking water facilities and
sanitation facilities including construction/ refurbishment of household toilets and water improvements at
household level, etc. and loans up to a limit of ₹10 crore per borrower for building health care facilities
including under ‘Ayushman Bharat’ in Tier II to Tier VI centres. In case of UCBs, the above limits are
applicable only in centres having a population of less than one lakh.
 Bank loans up to a limit of ₹30 crore to borrowers for purposes like solar based power generators, biomass-
based power generators, wind mills, micro-hydel plants and for non-conventional energy based public
utilities, viz., street lighting systems and remote village electrification etc., will be eligible for Priority Sector
classification. For individual households, the loan limit will be ₹10 lakh per borrower.
 Loans not exceeding ₹2.00 lakh provided by banks to SHG/JLG for activities other than agriculture or MSME,
viz., loans for meeting social needs, construction or repair of house, construction of toilets or any viable
common activity started by SHGs. Loans to distressed persons [other than distressed farmers indebted to
noninstitutional lenders] not exceeding ₹1.00 lakh per borrower to prepay their debt to non-institutional
lenders.
 Loans up to ₹50 crore to Start-ups, as per definition of Ministry of Commerce and Industry, Govt. of India
that are engaged in activities other than Agriculture or MSME.
 Priority sector loans to the following borrowers will be considered as lending under Weaker Sections
category: (i) Small and Marginal Farmers (ii) Artisans, village and cottage industries where individual credit
limits do not exceed ₹1 lakh (iii) Beneficiaries under Government Sponsored Schemes such as National
Rural Livelihood Mission (NRLM), National Urban Livelihood Mission (NULM) and Self Employment Scheme
for Rehabilitation of Manual Scavengers (SRMS) (iv) Scheduled Castes and Scheduled Tribes (v)
Beneficiaries of Differential Rate of Interest (DRI) scheme (vi) Self Help Groups (vii) Distressed farmers
indebted to non-institutional lenders (viii) Distressed persons other than farmers, with loan amount not
exceeding ₹1 lakh per borrower to prepay their debt to non-institutional lenders (ix) Individual women
beneficiaries up to ₹1 lakh per borrower (For UCBs, existing loans to women will continue to be classified
under weaker sections till their maturity/repayment.) (x) Persons with disabilities (xi) Minority communities
as may be notified by Government of India from time to time.
 Bank credit to registered NBFCs (other than MFIs) for on-lending will be eligible for classification as priority
sector under respective categories subject to the following conditions: (i) Agriculture: On-lending by NBFCs
for ‘Term lending’ component under Agriculture will be allowed up to ₹ 10 lakh per borrower. (ii) Micro &
Small enterprises: On-lending by NBFC will be allowed up to ₹ 20 lakh per borrower.
 Bank credit to Housing Finance Companies (HFCs), approved by NHB for their refinance, for on-lending for
the purpose of purchase/construction/ reconstruction of individual dwelling units or for slum clearance
and rehabilitation of slum dwellers, subject to an aggregate loan limit of ₹20 lakh per borrower. Banks
should maintain necessary borrower-wise details of the underlying portfolio.
 Cap on On-lending Bank credit to NBFCs (including HFCs) for on-lending, will be allowed up to an overall
limit of five percent of individual bank’s total priority sector lending. Banks shall compute the eligible
portfolio under onlending mechanism by averaging across four quarters, to determine adherence to the
prescribed cap.
 No loan related and ad hoc service charges/inspection charges should be levied on priority sector loans up
to ₹25,000. In the case of eligible priority sector loans to SHGs/ JLGs, this limit will be applicable per member
and not to the group as a whole.

परिपत्र साि: Gist of Circulars 135

 अस्‍वीकरण‍खंड‍/ DISCLAIMER CLAUSE

यह संकलन हमारे कमषचाररय ं के कामकाजी ज्ञान क समृद्ध करने के

दृणिक ि से तैयार णकया गया है और अद्यतन और सही जानकारी
प्रदान करने के णलए हर संभव प्रयास णकया गया है ।
सीआईबीएम, मणिपाल, णवर्यवस्तु में णकसी भी त्रुणि या चूक के णलए
क ई णजम्मेदारी या दाणयत्व नहीं लेता है , और इस सामग्री में णनणहत
जानकारी णवणभन्न स्र त ं से "जैसा है " आधार पर प्रदान की गई है ।
अणधक जानकारी के णलए, इस पुस्तक के उपय गकताष ओं क भा रर
बैंक पररपत्र ,ं आईबीए णदशा-णनदे श ,ं सरकारी अणधसूचनाओं, बैंक
द्वारा जारी पररपत्र ं आणद का भी संदभष लेने की सलाह दी जाती है ।
सामग्री क समृद्ध करने के णलए यणद क ई सुझाव ह त णनम्न ई-मेल
पर भे जा जा सकता है :
[email protected]

This compilation is prepared from the point of view of

enriching the working knowledge of our employees and
every effort has been made to provide updated and
correct information.
CIBM, Manipal assumes no responsibility or liability for
any errors or omissions in the contents, and the
information contained in this material, is provided on an
“as is” basis from various sources.
For more information, the users of this book are advised
to also refer RBI Circulars, IBA Guidelines, Govt.
Notifications, Circulars issued by the Bank etc.
Any suggestions for enriching the material may be sent by
email to:
[email protected]
अध्ययन व णवकास शीर्ष Learning & Development Vertical
केनरा बैंक प्रबंधन संस्थान Canara Institute of Bank Management
अनंत नगर, II स्टे ज Ananthanagar, II Stage
Manipal – 576 104
मणिपाल -576 104
Udupi, Karnataka
उडु णप, कनाष िक