Field Training Report

on Branch

(The Mansa Central Cooperative Bank Ltd.

BO-Biroke Kalan)

Submitted To: Submitted By:

Agriculture Cooperative Staff Mandeep Singh
Training Institute. Clerk cum DEO
(Jalandhar) DCCB-Mansa

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 ACKNOWLEDGEMENT

As per task assigned to me by authorities of the bank, I undertook the training

at The Mansa Central Cooperative Bank Ltd. Branch- Biroke Kalan

I want to acknowledge the sincere assistance by Branch Manager and other

staff of the branch. I would like to thank all the valued customers of Bank who
threw light on various bank related issues that proved to be helpful in my
training. . Last but not the least I would like to thank my faculty members of
ACSTI for giving me the thorough information regarding banking which
helped me in my training.

It has been very informative practical experience for me and I extend my

gratitude to the department for making this field learning a part of our training.
I am presenting this Field Learning Report based on my training at the Branch.

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 INTRODUCTION
The Mansa Central Cooperative Bank Ltd. Branch- Biroke Kalan.

The Branch has a staff of 2 members which includes a Manager and a peon.
The staff was very cooperative to me throughout the training. The name of the
societies related to this branch are as follows:

1.The Biroke Kalan MPCASS

2. The Biroke Khurd MPCASS

3. The Guraddi MPCASS

PROCEDURE OF ACCOUNT OPENING OF DIFFERENT ACCOUNTS

 When any customer wants to open account in a bank, he needs to fill an Account
Opening Form. Account opening form contains different columns like

Name

Father’s name

Address

Occupation

Date Of Birth

Address etc.

 The two photographs of the depositors/account holders who are authorized to operate
the accounts at the time of opening of all new accounts.

 Specimen Signatures /Thumb impression of the account holders must be taken.

 It is mandatory to obtain PAN or Form 60/61 from a depositor opening an account
with an initial deposit of Rs.50,000/- and above or at the time when depositor
deposits Rs.50,000 or above.

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  Introduction by existing customer or reputed person of the area.
 KYC Performa is filled. It contains the following information:

Occupation

Educational or Professional Qualification

Source of income, Monthly income, Annual income

Dealing with other banks, credit card holder,

Relative settled in abroad, etc

 After this the account is opened in computer and the Customer ID and Account
Number is issued.

 The Passbook is given to the account holder.

 The check book is issued if customer wants.

When the account is opened the entry is done in the Account Opening and Closing
Register. It contains the following columns:

Account Account Opening Address of the Signatures

No. Date Depositor
Clerk Manager

KYC(Know Your Customer)

Know your customer (KYC) is the process used to verify the identity of their customers.
The term is also used to refer to the bank regulation which governs these activities. Know
your customer policies are becoming increasingly important globally to prevent identity
theft, financial fraud, money laundering and terrorist financing. Under KYC norms bank
verify identity and residential proof of customer. The objective of KYC guidelines is to
prevent banks from being used intentionally or unintentionally by criminal elements for

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money laundering activities. Related procedures also enable banks to know or understand
their customers, and their financial dealings better.

Nomination Facility
Nomination is a facility that enables a deposit account holder (individual or sole proprietor)
or safe deposit locker holder to nominate an individual, who can claim the proceeds of the
deposit account or contents of the safe deposit locker, post the demise of the original
depositor or locker holder.
The benefit of nomination is that in the event of death of an account holder or locker holder,
the Bank can release the account proceeds or contents of the locker to the nominee without
insisting upon Court Order. The nominee holds the contents on behalf of the legal heirs of
the deceased account holder or locker holder and the Bank's liability is duly discharged on
payment to the Nominee.

The nomination register contains the following information:

Registration Date Name of Nature Of Name of Relation with Age Sign of

No. depositor with Deposit Nominee depositor
official
address with address

Documentation:

The following documents are required to submit for opening an account:

1) Account Opening Form.
2) Identity Proof
3) Address Proof
4) Two passport size photographs.
5)PAN Card or Form 60/61

Operations in accounts:

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At the time of opening of an account, instructions as to the operations should be obtained
from the account holder.
1) Self Operated:
When the account is self operated, it is to be operated by the account holder only.
2) Jointly operated:
When the account is jointly operated, it is to be operated by both the account holders.
3) Joint or Survivor:
When the account is joint or survivor, it is to be operated by all the account holders
jointly. However if any one of the account holder dies, then operations in that account is
stopped and amount is paid to survivors.
4) Either or survivor:
The account is opened in the name of two persons to be operated by either of them. In the
event of death of one of them, the balance is payable to the survivor.
5) Former or Survivor:
The former i.e. the first person, has the full control over the account. The survivor will
get the right only after the death of the former.

6) Anyone or Survivor:

The account is opened by more than two persons to be operated upon by any of them. In

the event of death of one of account holders the right to operate the account rests with the

survivors jointly.

7) Propertiorship:

It is applicable to accounts opened by firms where firm is owned and all operations are done
by owner.

8) Authorized signatory:

This type of accounts are operated by one person or more than one persons as per mandate
provided at the time of account opening. This type of operation is usually used in SHG
A/C,Trust A/Cs.

Standing Instructions:
The bank may receive some standing instructions i.e. transfer of specific amount from
saving bank account to recurring deposit account, transfer of interest on fixed deposit to
saving bank account, transfer of locker rent from saving bank account, transfer of
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installments of loan from saving bank account etc. To activate a standing instruction the
application is taken from the account holder.

1) Separate file for standing instructions

3) Entering standing instructions in finacle.

Procedure for issue of cheque book

Following are the steps to issue cheque book:

1) Request from customer for issuance of cheque book.

2) Verification of signature of customer.

3) Stamp all leaves of cheque book with name of the branch and the account number is
written on each leaf.

4) Issue of cheque book to the customer

5) Enter in Cheque book issue register and obtain customer signature on register.

6) The cheque book issue register contains the following information:

S.No Account Particulars of To whom issued Signature Of

Books Issued Manager
No
From To Name Signature

7) Verification of supervisory officer on the issue of cheque book

Passing and Payment of Cheque:

A cheque is an unconditional order, drawn on a specified banker and is always payable on
demand. The drawer of a cheque cannot attach any thereto. However, he may give specific
instruction to the paying banker regarding the mode of payment of the cheque. When any
customer or any other person (on behalf of payer) presesents a cheque following things need
to be taken care of:

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 1. Date of cheque : It needs to be verified that cheque is not more than three months
old neither date mentioned on it is yet to come.

2. Amount in words and figures: Amount written on cheque in figures and in words
should be verified.

3. Cheque no. : Cheque no. is verified whether it matches with the cheques issued to
the depositor who or on whose behalf cheque is presented.

4. Signature of depositor: Signature on cheque are verified with the specimen

signatures on the account opening form of payer.

5. Cutting on cheque: If there is any cutting on cheque, then it should be verified by

the payer by doing a signature near to the cutting.

Collection of Cheque:

When bank receives a cheque of other bank from any customer,it is presented in local
clearing if the drawee bank is not located in that city/village it is sent to other branch as obc
where that bank is present.

Vouchers :

Various vouchers used in the branches are as follows :

Cash receipt voucher: Cash receipt voucher is used to deposit cash in any account.
Depositor mentions account number, name, date, amount in figures and words in prescribed
columns in a voucher. Depositor is also required to give the denomination detail while
depositing cash in an account. After filling all these columns and signing at the prescribed
place, depositor can deposit the amount with the cashier. After verifying account number
and name cashier gives the receipt to depositor. This entry is entered by cashier and verified
by manager or person with that authority.

Cash withdrawal voucher: This voucher can be used to withdraw amount up to Rs

50,000/-. It is filled by the customer himself. Passbok must accompany this withdrawal form
at the time of withdrawing money to verify the specimen signatures of the customer. Image
of withdrawal voucher is given below.
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Transfer vouchers: Transactions that do not involve cash are made through transfer
vouchers. These vouchers are used to transfer funds from one account to another. In this
process one account is debited and other is credited with the same amount. There can also be
the case when only one account is debited and that amount is credited to more than one
accounts in such a way that amount debited is equal to the sum of all the accounts credited.
This voucher is signed or endorsed by the person whose account is debited. Transfer only
takes place after the signatures are verified.

Payment Voucher : It is used for making the payment during the purchase of things like
furniture, stationary etc. A bill should be attached with the payment voucher.

Every voucher is entered in finacle by clerical staff and passed/verified by manager.

Cash Book:

All the cash transactions are maintained or recorded in a book. This book is called cash
book. All the transactions in which cash receipt voucher and cash withdrawal voucher are
used are recorded in this book. This book is generally maintained by cashier.

Receipts Payments

Sno. Account Name Amount Remarks Sno. Account Name Amount Remarks
no. no.

Day Book:
Transfer transactions as well as cash transactions are stored or recorded in this book. This
book contain all the transactions that occur in a day in a bank. Only difference between Cash
book and Day Book is that in the Daybook the transfer entries are also recorded. Day Book
is available in finacle, It is generated automatically at the time of day end.

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General ledger :
It contains user-defined account codes and related dimensional codes for recording
transformed different types of vouchers including on-balance-sheet, off-balance-sheet, post-
balance sheet, financial and non-financial natures. The statement of financial position and
the statement of income and comprehensive income are both derived from the general
ledger. Each account in the general ledger consists of one or more pages. The general ledger
is where posting to the accounts occurs.

Personal ledger:
Personal ledger is made with the intention to facilitate the administration thereof to credit
receipts into and to effect withdrawals directly from the account. The ledger provides an up-
to-date account balance. Ledgers also provide an historical record of your income and
expenditures. A ledger also is useful in the event that your bank makes an error, since your
accounting will reveal the issue and give you a means of identifying fraudulent or erroneous
transactions. For loan a/c’s personal ledger is managed in branch, saving and current a/c
there is no need for ledgers it is maintained with in finacle itself.

Demand Draft :
1) The Demand Draft (DD) are the instruments issued to the customers by a bank on
request. A Demand draft is an order to pay money, drawn by one office of a Bank upon
another office of the same Bank for a specified sum of money payable to order on demand
and the ‘Pay Order’ is like a Banker’s Cheque payable locally.
2) Sale of Drafts constitutes an important function of the Bank.
3) Despite the growth of new modes of transfer of funds lik “Electronic funds Transfer”
etc., the sale of Demand Drafts in banks has not reduced in volume.

Cancellation of DDs:
The purchaser of the Demand Draft can request the Bank in writing along with his signature
as in the DD application form for cancellation of a particular instrument. In such case he
must enclose the said DD to his request letter. The Bank can cancel such DDs after
establishing the identity of the purchaser to the satisfaction of the Bank and charging the fee

10
prescribed for the same.Stop payment instructions are not accepted from the purchaser for
the DDs already issued.

Procedure for issue of duplicate Draft:

1) Letter from the purchaser of the DD be obtained containing the details like DD number,
date, amount, favoring, drawn on which Bank and Branch, a request for issuance of a
duplicate demand draft in lieu of DD reportedly lost, address of the applicant etc., and it is
to be ensured that the signatures on the letter and application at the time of purchase of DD
are one and the same.
2) Basing on above letter, the drawee bank’s branch has to be addressed to
 confirm whether the subject DD is paid at their end
 if not paid, to note caution of reporting that the original DD is lost in their records
3) The Branch / Bank has to obtain an indemnity bond on the non-judicial stamp paper
(value of stamp paper depends upon the value of the DD) duly executed by the purchaser
of the original DD.
4) The secured correspondence in the matter i.e. letter from the purchaser, original
indemnity bond are to be tagged together and kept in separate file and this file should form
part of charge list upon transfer of Branch Managers.
5) On completion of all the above formalities, a duplicate DD can be issued duly collecting
the charges for issue of duplicate DD. On the duplicate DD it is to be mentioned that
“Duplicate DD issued in lieu of original
DD No. _________ dated _______”.
For DD issued under AIMAS scheme, the procedure laid down in the
AIMAS Manual of NAFSCOB be followed.

Payment of Draft:
On receipt of a DD, branch has to check DD should be physically intact then for extra
precaution they can call drawee branch and confirm DD amount and then DD can be paid.
DD can be paid only to account no cash payment is done.

Maintenance of inoperative and unclaimed deposit accounts:

Saving Bank and Current Account which have not been operated continuously for two years
are termed as Inoperative accounts. Entries made into the account by way of charges debited

11
or interest credited do not make an account operative. So there must have deposit or
withdrawal of money by the customer.

Purpose of Inoperative Account

 It helps the bank in saving unnecessary labor of maintaining the record.

 It helps the bank to save such account from frauds.

All the accounts which have not been operated for two years continuously shall be
transferred to inoperative accounts at the end of every year.

Interest on inoperative account is to be credited to the account.

Unclaimed Deposit Account:

The accounts which are not operated for ten years continuously are to be treated as
unclaimed deposits. Transactions in the account due to debit of charges and credit of interest
shall not be construed as operation of account. It is statutory on the part of the bank to
transfer all such accounts, which have not been operated for the last ten years, to unclaimed
deposit account. This is as per the requirement under the section 26 of Banking Regulation
Act 1949. Such accounts shall be transferred to unclaimed account on 31 st December of
every year.

 No interest should be paid on unclaimed accounts.

 Unclaimed accounts cannot be converted into operative accounts.

Settlement of death claim:

As soon as the bank gets the notice of death of account holder, the fact should be noted
on both account opening form as well as the personal ledger of the depositor with red ink
mentioning the date and the source of information. Upon the death of an account holder, the
authority given by him to the bank to pay cheques stands revoked.

Documents required for deceased account :

The following documents are required to be obtained for the settlement of claim of the
deceased accounts :
 Death certificate (original)
 Claim form
 Affidavit
 Indemnity Bond
 Two sureties
In case nomination is there in account then death claim is fast, without nomination it is
hectic process as all legal heirs should come to branch and all of their identities are
verified by bank officials.

Locker:

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Not available in branch or any nearby branch.

Calculation of Simple Interest:

Interest is a fee paid on borrowed assets. It is the price paid for the use of borrowed money
or, money earned by the deposited funds. Interest can be thought of as “rent of money”.
When money is deposited in a bank, interest is typically paid to the depositor as a
percentage of the amount deposited; when money is borrowed, interest is typically paid to
the lender as a percentage of the amount owed. The percentage of the principal that is paid
as a fee over a certain period of time, is called the interest rate.

Formula:

I=Pxrxn

A = P+I

I is simple interest

P is the Principal

r is the annual rate of interest

n is the number of years the amount is deposited or borrowed for

A is the amount of money accumulated after n years, including interest.

OPENING OF ACCOUNT – FD/LTD/RD

FD/LTD/RD account can be opened by any person. If person is already customer of bank
then there is no need for introduction, kyc documents and if customer is not existing
customer of bank then we have to collect kyc documents and introduction is also necessary.

Documentation

FD/LTD/RD account opening form.

For existing customer no kyc documents and photographs needed but for non-existing
customers we have to obtain kyc documents and verify them,1 photograph.
Generally bank encourage customer to open savings account before opening FD/LTD/RD
accounts.

Transaction

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Cash transaction directly to the FD/LTD/RD account can be done if the amount is less than
or equal to Rs 20,000. Otherwise, cash is deposited in the saving bank account and then the
amount is transferred from saving bank account to FD/LTD/RD account. In case of RD, the
installment can be deposited through cash by filling in the RD deposit slip (voucher).
FD/LTD Receipt

After the FD/LTD account is opened and the amount is deposited in the account, FD/LTD
receipt is given to the customer. The details in the receipt are as follows-

 Name of Depositor and Father/Husband

 Amount deposited in FD/LTD in words and figures
 FD/LTD Account No.
 Rate of Interest on FD/LTD
 Time Period of Deposit
(Minimum period is 7 days for FD, 6 months for LTD and 1 year for RD)
 Date of Issuing Receipt
 Interest Starting Date
 Maturity Date
 Maturity Amount
 Nomination Registration No.

Issuing Duplicate Receipt

In case of loss of the original receipt, the customer can apply for duplicate receipt by
submitting the following documents –

 Application Form
 Indemnity Bond

PAYMENT OF FD/LTD/RD

Payment on Maturity

When the FD/LTD/RD gets matured the depositor can come to the branch to withdraw
his/her matured amount. But, if the customer does not come then the account is transferred

14
to different account head i.e. FD/LTD/RD Matured Account. When any transaction is made
in such account it automatically gets out of Matured Account Head.

Pre-Mature Payment

If the customer wants to withdraw the amount from the account before the maturity date,
he/she can do so but the interest paid is 1% less than the fixed interest for the account or rate
of interest for the time period for which deposit was held with bank whichever is lower
which is deducted as penalty and the interest is paid till the date of withdrawal of amount.
Revenue stamp is required in case of pre-matured closure of account.

RENEWAL OF FD/LTD

If the customer goes to the branch for the renewal of FD/LTD after the maturity date, we
can renew it from the back date i.e. from the date of the maturity of FD/LTD. The interest
rate applicable in that case is the rate which is on the date of renewal.

In case of LTD, if the customer wants to renew only the Principal amount and the interest to
be paid to his/her saving bank account, it is done in 2 steps –

1. The LTD is renewed with only the Principal amount and the interest is automatically
sent to the sundry miscellaneous account.
2. The interest from the sundry account is then transferred to the saving bank account
of the customer.

CALCULATION OF INTEREST

Interest on LTD/RD

Simple Interest is calculated on daily basis and at the end of the quarter, the interest is added
to the principal value i.e. the interest is simple on daily basis and compounded every quarter.

Interest on FD

Interest on FD is always simple and it is never compounded. A separate account is

maintained for the interest calculated on FD known as Interest Payable account. The interest
is never added to the principal amount for interest calculation.

Calculation of Matured Amount

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The formula to calculate the matured amount is –

where

 S = Matured Amount
 P = Principal Amount (initial deposit)
 j = annual interest rate (R.I./100)
 m = number of times the interest is compounded per year (value of m is 4)
 t = number of years for which the deposit is made

TAX DEDUCTION AT SOURCE

TDS is deducted on FD and LTD but not on RD. TDS is imposed if the interest on the
LTD/FD exceed Rs10,000 in a financial year. The system automatically deducts TDS as
soon as the interest on FD/LTD accounts exceeds Rs 10,000. TDS is imposed at the rate of
10% in case when PAN no. is registered and 20% if PAN number is not registered. A
separate account namely TDS account is maintained. TDS is deposited in the Income Tax
Department account every month.

15G & 15H Form

These forms are to avoid TDS deduction. In this case, TDS is not imposed only if the total
income of that person for a particular financial year does not come under taxable income.
The above forms are submitted by the following account holders –

 15 G Form - By an Individual or Person (not being a company or firm)

 15 H Form - By a Senior Citizen

These above forms have to be submitted every year along with 2 copies of PAN Card (one
for bank and other for Income Tax Department) which is an essential requirement. Once
TDS is deducted and no form is submitted then the refund for the same has to be claimed
from the Income Tax Department by filing Income Tax Return. But if TDS has been

16
deducted but the customer submits the form after that then TDS refund is made in case the
TDS deducted is with bank itself. If it has been submitted to ITD then customer has to claim
it from ITD. The refund is made in the saving bank account of the customer and not to the
FD/LTD account.

Form No. 60 and 61

If a customer make transactions which require PAN card but he/she does not possess it, then
the customer has to submit Form No. 60 or 61 in the following cases –

Form No. 60 - By a person who do not possess PAN card for making necessary transactions.

Form No. 61 – By a person who has agricultural income and do not have any other income
source which comes under taxable income.

These forms should be accompanied with a copy of valid address proof.

TYPES OF LOANS

The branch provide the following loans under different categories-

1. KCC (ST Crop Loan)

2. RCC (Revolving Cash Credit Limit to Farmers)
3. CCT (Cash Credit Limit to Traders)
4. Non Agriculture Loan to societies
5. Dairy Loan Scheme
 Mini Dairy Loan Scheme
6. Retail Loan Schemes
 Vehicle Loan Scheme
 Two wheeler loan scheme to farmer
 Medium Term Loan Schemes to Individual Salary & Non-Salary earners
 Over Draft facility to Staff
7. Non Farm Sector Schemes
 Rural House Building Loan Scheme
 Urban House Loan Scheme
8. Micro Credit Loan Schemes
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  Self Help Group Loan Scheme
 Mai Bhago Istri Shakti Scheme
9. Medium Term Loan
 MT Agriculture Loan
 MT Agro Loan

Loans given to PACS are-

1. KCC (ST Crop Loan)

2. Non Agriculture Loan
3. MT Agro Loan
4. MT Implement Loan
5. MT Agri Loan
6. Mai Bahgo Istri Shakti Loan Scheme

KCC (ST CROP LOAN)

This loan is type of short term crop loan which is given to farmers those who are owner
cultivators/share croppers.

Documents Required

Application Form along with Ration Card and Land Record (Fard Jamabandi)
Secretary of the society sends a report to the bank branch to sanction the fixed MCL to
the member.
Demand Pronote
Letter of continuity
Cash Credit Agreement
The member writes a letter to the president of the society to give him/her the rights to
withdraw the money up to the sanctioned limit.
Hypothecation of crop/assets to be created out of the bank loan
If the sanctioned limit is more than Rs. 50,000, mortage of land/ or third party guarantee
acceptable to the bank is necessary.

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Loan Repayment

The loan is repayable within 2 crop seasons ie. 12 months. But in practice, we do not
provide loan for the season if the loan taken in the previous crop season is not repayed.
Repayment can be rescheduled if there is a bad crop season, and extension is offered for
further up to 3 years and kcc is converted into medium term loan of 3 years.

Loan Rate

There is an interest subvention scheme on this loan. The rate of interest is 7% on loan, but if
the person repays the loan in scheduled time then there is 3% interest subvention and the
activated loan rate becomes 4%. Initially the society recovers the loan according to 7% loan
rate and then the amount equivalent to 3% loan rate is refunded to the person.

Advancement Recovery

01/10 to 31/01 01/03 to 30/06

01/02 to 30/09 01/10 to 31/01

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 TWO WHEELER LOAN TO FARMER

Loan is given to Agriculturalist having his own land or his family members. The maximum
loan amount is Rs.50000 or 75% of the value of the 2 wheeler, whichever is less. The
repayment period is 5 years.

Documents required

1. Application Form
2. Performa Invoice of two-wheeler from authorized dealer.
3. Copy of Valid Driving License
4. Nominal Membership Form

Security Documents

1. Hypothecation Deed of Vehicle

2. 2 Gurantee/Sureties or collateral security to the extent of 100% of the cost of the
vehicle.
3. Demand Pronote
4. Letter of Lien and Set Off
5. Letter of Waiver
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 6. Letter of Acceptance of Conditions
7. Receipt of Loan Amount

Post Disbursement Documents

1. Copy of Sale Letter

2. Certificate of Registration
3. Insurance of Vehicle

PERSONAL LOAN

The loan scheme is to provide credit facility for meeting out socio-economic needs of
employees. Loan limit is 15 times the gross monthly salary or Rs. 4 Lacs, whichever is less.

The loan repayment period is maximum 7 years. The loan is repaid in EMIs.The first
installment will start after one month of the date of sanction. The age should be between 21
to 57 years.

Eligibility:

Salaried employees of Punjab Government.

Employees of DCCB’s

Employees of Punjab State cooperative bank

Employees of General Insurance Companies.

Employees of Aided School/colleges

Employees of Public Sector Banks

Employees of Boards , Corporation

21
Documents Required

The following documents are required:

1. Application Form

2. Latest photographs

3. Residence Proof
4. Proof of income / Salary Certificate
5. No Due Certificate
6. Last 2 years Income Tax returns
7. Bank Account Statement
8. 2 Guarantors

CASH CREDIT LIMIT TO TRADERS

Cash Credit Facility under this scheme shall be granted for meeting working capital
requirements. The maximum amount of cash credit limit that can be availed is RS. 25 Lac.

Documents

1. Application Form
2. Nominal Membership Fee Slip
3. KYC Documents – Address & ID Proof
4. Stock statements-monthly for limit above 5lacs &quarterly for limit less than 5lac.

Financial Documents

1. Latest Stock Statements

2. Last 3 years Income Tax returns
3. Last 3 years Balance Sheets and Profit/Loss Statements

Security Documents

1. Valuation of Property
2. Map of the Property
3. Legal Opinion regarding property
22
 4. Fard & Fard Hakiyat of Property
5. Original Title Deeds (Registries) of Properties

Agreement Documents

1. Demand Pronote
2. Letter of Lien and Set off
3. Letter of Continuity
4. Mortgage Deed
5. Limit Agreement
6. Surety Bond

This limit is sanctioned for 1 year. After that it should be renewed on customer request.

Post Sanction & Disbursement Documents

 For Limit upto Rs.50000

1. Stock Statement
 For Limit between Rs.50000 and Rs. 5 Lac
1. Stock Statement
2. Last 3 years Balance Sheet and Profit/Loss Statements
3. Last 3 years Income tax returns
 For Limit above Rs. 5 Lac
1. Stock Statement
2. Last 3 years Balance Sheet and Profit/Loss Statements
3. Last 3 years Income tax returns
4. Project Report

Renewal of CCT Limit

The following documents are required for the renewal of CCT Limit:
 Renewal Application Form
 Balance Conformation Certificate
 Latest Balance Sheet
 Latest Stock statement
 Latest Income Tax Return
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  Latest Insurance

RURAL HOUSING LOAN SCHEME

Loan is provided under this scheme for purchase of built up house, construction of a new
house or repair/renovation/addition/alteration of existing house in rural areas. The maximum
loan limit for construction/purchase of new house is Rs. 15 Lac and the maximum limit for
renovation/repair work is Rs 1 Lac. Margin Money required in both cases is 15%.
Repayment period is 15 years and 10 years respectively in above cases.

Documents Required

1. Application Form
2. Loan Agreement
3. Demand Pronote
4. 2 latest photographs
5. Proof of Residence
6. Source of Finance for Margin Money
7. Copy of approved drawing of the proposed dwelling unit
8. Agreement of Sale Deed
9. Details of Cost on repairing

24
 10. Non-encumbrance Certificate
11. Latest Jamabandi and Girdawari
12. Certificate of ownership of land situated within red line.
13. Additional Collateral Security equivalent to 100% of the loan amount.

URBAN HOUSING LOAN SCHEME

Loan is advanced for the purchase of plot, purchase of built up house, construction of house
or repair, renovation, additions, alterations, etc. Maximum loan amount given is 48 times
and 36 times the net monthly income if age of the person is between 21-45 years and above
45 years respectively or 25lacs whichever is less. Maximum period of repayment of loan is
15 years or attaining age of 65 years whichever is less.

Documents Required

Pre-Sanction Stage

1. Identity & Residential Proof

2. 2 self attested photographs
3. Last 3 years Income Tax Return
4. Sources of Finance for Margin Money
5. Non-encumbrance Certificate
6. Legal Opinion about the property
7. Original Title Deed
8. Purchase agreement of the property

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 9. Income Proof / J Form
10. Loan Application Form

Post-Sanction Stage

1. Loan Agreement
2. Demand Pronote
3. Mortgage Deed
4. Letter of Lien and Set Off
5. Letter of Waiver
6. Letter of Guarantee

MINI DAIRY LOAN SCHEME

The loan is provided to the farmers for dairy development and for purchase of 2 to 10 milch
cattle. Loan is provided by making the applicant as nominal member of the bank. The loan
amount is Rs. 50000 per animal. The margin money required is 15% of the cost of animals.
The loan repayment period is 5 years.

Documents Required

1. Application Form
2. Appraisal Form
3. Time Pronote
4. Letter of Repayment Schedule
5. Nominal Membership Form
6. Guarantee of 2 persons who should be nominal members of banks
7. Mortgage of land property equivalent to 150% of the loan amount.
8. Hypothecation of milch cattle financed by bank.

Renewal and Enhancement of RCC limits –

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RCC limits of farmers can be renewed after the completion of previous tenure. The
applicant has to fill a form regarding renewal of cc limit b which states the following
information –
1) Name of applicant

2) Fathers name
3) Address
4) Previous sanctioned limit
5) Limit maturity date
6) Statement stating that he is not a defaulter

RECOVERY OF LOANS

Recovery refers to collection of amount due. The recovery depends on the purpose, time and
condition, business running process etc. Normally loan amount will be recovered on
installment basis. The manager can fix installment period on the basis of nature of their
business.
In short term loan is recovery is less than 36months. In medium term loan recovery from 36
months to 84 months. In long term loan normally recovery from 84months and above.
Interest earned is the income for the corporation, payments, the entire expenses and plough
back requirement therefore, recovery of money is one of the major source of funds for the
corporation. The health of the corporation is judged by the extent of recovery that it can
affect.
The corporation also is bound by minimum dividend obligation irrespective, whether it
makes profit or not out of the post tax and post dividend income. The memos are retained in
the corporation by way of reserves.
Therefore systematic follow-up recovery of loan plays a significant role in our operations. In
case repayment of loan is not done as fixed, then the recovery of loans is done in 3 steps-

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1. Registered Notice from the branch manager to the person to inform him to repay the
loan amount otherwise legal action will be taken.
2. Notice from the Deputy Registrar to the person to warn him to repay the pending loan
amount.
3. Issue of Certificate for Recovery under Section 67-A of the Punjab Cooperative
Societies Act, 1961.

Management Information System:-

A management information system (MIS) provides information that organizations require to
manage themselves efficiently and effectively. Management information systems are
typically computer systems used for managing. Academically, the term is commonly used to
refer to the study of how individuals, groups, and organizations evaluate, design, implement,
manage, and utilize systems to generate information to improve efficiency and effectiveness
of decision making, including systems termed decision support systems, expert systems, and
executive information systems

Advantages of MIS:-

The following are some of the benefits that can be attained using MISs.

1. Banks are able to identify their strengths and weaknesses due to the presence of revenue
reports, employees' performance record etc. Identifying these aspects can help a bank
improve its business processes and operations.

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2. Giving an overall picture of the bank.

3. Acting as a communication and planning tool. The availability of customer data and
feedback can help the company to align its business processes according to the needs of its
customers.

4.The effective management of customer data can help the company to perform direct
marketing and promotion activities.

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