which is not less than a certain percentage of the total of its demand and time liabilities

in India. This is known as Statutory Liquidity Ratio (SLR). The ratio keeps on changing
time to time. At present SLR is 18.00 %.

)
1.5. BANKING REGULATION ACT, 1949:

77
Some of the important provisions of the Act affecting day-to-day transactions at branches

65
are discussed hereunder. The amendments made operative by the Banking Laws
(Amendment) Act, 1981 have also been incorporated herein.

12
As per section 20, a bank can not grant loans or advances on the security of its own

K
shares.

.(A
As per section 24, banks are required to maintain SLR Statutory Liquidity Ratio)

IT
Barks should transfer to RBI monthly all deposits which have not been operated/claimed

K
for the last 10

N
A
years. (Section 26 A).

T
Section 45 Y: Power granted to Central Govt to make rules for preservation of records
A
W

Section 45Z: Return of paid instruments to customers after keeping a true copy of such
instruments
A
M

Section 45ZA to 45 ZF relate to Nomination in deposits, safe custody and locker accounts.
U
K

1.6. COMPANIES ACT, 2013:

In India, now companies are governed by Companies Act, 2013. Now All the companies
r.

are required to be registered under Companies Act, 2013. A company is a juristic person
M

created by law, having a perpetual succession and common seal distinct from its
y:

members. Section 11 of the Companies Act provides that an Association or Partnership

B

consisting of more than 10 in the case of Banking Business and more than 20 in the case
of other business shall be registered under the companies act. If not registered, the said
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association or partnership will be illegal.

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The business and the objects of a company and the rules and regulations governing its
oa

management is known by two important documents called Memorandum of Association

nl

and Article of Association.

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Registration of charges:
D

Under Section 125 of the Act, the following charges created by a company, whether public
or private, on the security of its property or undertaking are void against the liquidator
and/or any creditor of the company unless the prescribed particulars of charge together
with the instrument, if any, by which the charges are created or evidenced or a copy

11
 thereof verified in the prescribed manner are filled with the concerned Registrar of
Companies within -30- days from the date of its creation.

As may be observed, equitable-mortgage created by deposit of title deeds, though without

)
any instrument evidencing the charge, requires registration. However, a charge created

77
by pledge of movables does not require registration.

65
12
Highlights of Companies Act 2013:

K
A. Immediate Changes in letterhead, bills or other official communications, as if full

.(A
name, address of its registered office, Corporate Identity Number (21 digit number
allotted by Government), Telephone number, fax number, email ID, website

IT
address if any.

K
B. One Person Company (OPC): It's a Private Company having only one Member
and at least One Director. No compulsion to hold AGM. Conversion of existing

N
private Companies with paid-up capital up to Rs 50 Lacs and turnover up to Rs 2

A
Crores into OPC is permitted.
T
C. Woman Director: Every Listed Company /Public Company with paid up capital of
A
Rs 100 Crores or more / Public Company with turnover of Rs 300 Crores or more
W

shall have at least one Woman Director.

A

D. Resident Director: Every Company must have a director who stayed in India for
M

a total period of 182 days or more in previous calendar year.

U

E. Accounting Year: Every company shall follow uniform accounting year i.e. 1 st
K

April -31st March.

r.

F. Loans to director – The Company CANNOT advance any kind of loan / guarantee
M

/ security to any director, Director of holding company, his partner, his relative, Firm
in which he or his relative is partner, private limited in which he is director or
y:

member or any bodies corporate whose 25% or more of total voting power or board
B

of Directors is controlled by him.

d

G. Articles of Association- In the next General Meeting, it is desirable to adopt Table

de

F as standard set of Articles of Association of the Company with relevant changes

to suite the requirements of the company. Further, every copy of Memorandum
oa

and Articles issued to members should contain a copy of all resolutions /

agreements that are required to be filed with the Registrar.
nl

H. Disqualification of director- All existing directors must have Directors

ow

Identification Number (DIN) allotted by central government. Directors who already

have DIN need not take any action. Directors not having DIN should initiate the
D

process of getting DIN allotted to him and inform companies. The Company, in
turn, has to inform registrar.
I. Financial year- Under the new Act, all companies have to follow a uniform
Financial Year i.e. from 1st April to 31st March. Those companies which follow a

12
 different financial year have to align their accounting year to 1st April to 31st March
within 2 years. It is desirable to do the same as early as possible since most of the
compliances are on financial year basis under the new Companies Act.
J. Appointment of Statutory Auditors- Every Listed Company can appoint an

)
individual auditor for 5 years and a firm of auditors for 10 years. This period of 5 /

77
10 years commences from the date of their appointment. Therefore, those

65
companies have reappointed their statutory auditors for more than 5 / 10 years;
have to appoint another auditor in Annual General Meeting for year 2014.

12
K. Constitution of National Financial Reporting Authority (NFRA). NFRA to perform

K
its functions through such divisions as may be prescribed by the Central

.(A
Government.

IT
1.7. Goods & Service Tax Act 2016

K
N
Goods & Services Act was enacted in 2016 and came into effect from 01.07.2017.

A
Features:
T
1. GST would be applicable on “supply” of goods or services as against the present
A
concept of tax on the manufacture of goods or on sale of goods or on provision of
W

services. Four slabs have been defined 5%,12%,18%,28%. It would be applicable to

A

all products except liquor for human consumption. First time SIN goods have been
M

defined by the tax authorities.

U

2. GST would be based on the principle of destination based consumption taxation as

K

against the present principle of origin-based taxation.

3. It would be a dual GST with the Centre and the States simultaneously levying it on a
r.

common base. The GST to be levied by the Centre would be called Central GST
M

(central tax- CGST) and that to be levied by the States [including Union territories with
y:

legislature] would be called State GST (state tax- SGST). Union territories without
B

legislature would levy Union territory GST (union territory tax- UTGST).
4. An Integrated GST (integrated tax- IGST) would be levied on inter-State supply
d
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(including stock transfers) of goods or services. This would be collected by the Centre
so that the credit chain is not disrupted.
oa

In 2018-19, following key announcements were made:

nl

- Aadhar mandatory for registration of taxpayers under GST and it may become
ow

mandatory for claiming refunds.

- Quick Response (QR) code may be made mandatory in the Tax Invoice and Bill of
D

supply at a later date to be notified.

1.8. Registrar of Companies

13
 Registrars of Companies (ROC) appointed under Section 609 of the Companies Act,
covering the various States and Union Territories are vested with the primary duty of
registering companies and LLPs floated in the respective states and the Union Territories
and ensuring that such companies and LLPs comply with statutory requirements under

)
77
the Act. These offices function as registry of records, relating to the companies registered
with them, which are available for inspection by members of public on payment of the

65
prescribed fee. The Central Government exercises administrative control over these

12
offices through the respective Regional Directors.

K
The charge of the financing Institutions on the assets of the company are required to be

.(A
registered with the ROC within 30 days from the date of creation of charge. If the charge
has remained to be created within the stipulated time of 30 days, then also the charge
can be created by paying the additional fee by way of penalty.

IT
K
1.9. Central Registry (CERSAI)

N
A
Central Registry of Securitization Asset Reconstruction and Security
Interest (CERSAI) is a central online security interest registry of India. It is primarily
T
A
created to check frauds in lending against equitable mortgages, in which people would
W

avail multiple finances against the same asset from different banks.
A

CERSAI's mandate is to maintain a centralized data bank of equitable mortgages created

M

and registered where it contains information on the equitable mortgage taken on a

U

property along with details of the financial institution that has extended the loan as well
K

as details about the borrower. CERSAI also allowed lenders to register transactions
of securitization and asset reconstruction.
r.
M

Under the provisions of Section 23 of the SARFAESI Act, 2002 particulars of any
charge creating the security interest over property is required to be filed with the registry
y:

(the timeline within 30 days from the date of creation is omitted w.e.f 24.01.2020).
B

It means a timeline of 30 days is removed.

d
de

1.10. SARFAESI ACT 2002

oa

This Act gives powers of “seize and desist” to banks. Banks can give a notice in writing
nl

(By Authorised officer) to the defaulting borrower requiring it to discharge its liabilities
within 60 days (Section 13 (2)). If the borrower fails to comply with the notice, the Bank
ow

may take recourse to one or more of the following measures (Section 13 (4):
A-take possession of the security for the loan
D

B-Sale or lease or assign the right over the security

C-Manage the same or appoint any person to manage the same.

14
 This act also provides for establishment of Asset Reconstruction Companies (ARCs)
regulated by RBI to acquire assets from Banks and Financial Institutions. The Act
provides for sale of financial assets by Banks and Financial Institutions to Asset
Reconstruction Companies. RBI has issued guidelines to Banks on the process to be

)
followed for sale of financial assets to ARCs.

77
65
1.11. THE INSOLVENCY AND BANKRUPTCY CODE, 2016
This act was passed by Parliament on 16.05.2016 to consolidate and amend the laws

12
relating to reorganization and insolvency resolution of corporate persons, partnership
firms and individuals in a time bound manner for maximization of value of assets of such

K
persons, to promote entrepreneurship, availability of credit and balance the interests of

.(A
all the stakeholders. This act proposes to establish INSOLVENCY & BANKRUPTCY
BOARD to make a paradigm shift from the existing ‘Debtor in possession’ to a ‘Creditor
in control’ regime. National Company Law Tribunal will be the adjudicating authority

IT
under the aforesaid. This ACT envisages a “creditor in control” regime with financial

K
creditors exercising control through IPs in the event of a single default in repayment of

N
any loan or interest. This can be affected without any notice and the law is very stringent

A
as compared to the SARFAESI Act, 2002.

Key points: T
A
A. Corporate Insolvency Resolution Process
W

Application on default – Any financial or operational creditor(s) can apply for insolvency
A

on default of debt or interest payment subject to minimum monetary limit.

M

Appointment of Insolvency Professional – IP to be appointed by the regulator and

approved by the creditor committee. IP will take over the running of the Company.
U

From date of appointment of IP, power of Board of directors to be suspended and

K

vested in the IP. IP shall have immunity from criminal prosecution and any other
r.

liability for anything done in good faith

M

Moratorium period – Adjudication authority will declare moratorium period during which
no action can be taken against the company or the assets of the company. Key
y:

focus will be on running the Company on going concern basis. A Resolution plan
B

would have to be prepared and approved by the Committee of creditors.

Credit committee - A credit committee of creditors will be constituted. Related party to
d

be excluded from committee. Each creditor shall vote in accordance to voting

de

share assigned if 75% of creditor approve the resolution plan same needs to be
implemented.
oa
nl
ow

B. Liquidation Process
D

Initiation – Failure to approve resolution plan within specified days will cause initiation of
Liquidation. Debtor can also opt for voluntary liquidation by a special resolution in
a General Meeting. Liquidator – The IP may act as the liquidator, and exercise all
powers of the Board of Directors. The liquidator shall form an estate of the assets,
and consolidate, verify, admit and determine value of creditors’ claims

15
 Order of priority for distribution of assets

• Insolvency related costs

)
• Secured creditors and workmen dues up to 24 months

77
• Other employee’s salaries/dues up to 12 months

65
• Financial debts (unsecured creditors)

12
• Government dues (up to 2 years)
• Any remaining debts and dues

K
• Equity

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IT
1.12. Siebel CRM (SPGRS):
In SIEBEL CRM Complaint Module, Branch is an initiator of Complaint. Branch

K
doesn’t have any Resolving rights. Branch can search for complaint lodged

N
through any source e.g. Branch, Contact Center, Online Portal, Resolver Groups

A
etc. Complaint view of branch comprises:
T
A
In order to bring in customer centricity in the provision of banking services, the Ministry
W

of
A

Finance, Govt. of India, has advised to implement a uniform and effective Public
M

Grievance
Redress System (PGRS) in PSBs to effectively to deal with such matters within the bank
U
K

URL of Siebel CRM (SPGRS) is https://crm360.bankofbaroda.co.in:8443/fins_enu

r.

Module can be accessed only through CBS network.

M
y:

Access Authority:
B

1. Branch User
d

2. Regional Office User

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3. Zonal Office User

4. Department User
oa

5. HO (Head Office) User

nl

6. Contact Centre User

7. IO (Internal Ombudsman) User
ow
D

Menu:
1. Customer Search
2. Creation of Complaint
3. Complaint Resolution
4. Complaint Reopen

16
 5. Complaint Tracking
6. Complaint History of Customer
7. Audit Trail of Complaint
8. Bounce Complaint to initiator

)
9. Query raised to departments for resolution of complaint

77
10. Complaint Escalation

65
11. IO Review
12. MIS Reports

12
13. Bulk Resolution

K
.(A
COMPLAINTS Under Complaints TAB view for Branches, following options are
available:
a. Complaint List b. Complaint Search c. Bounced Complaint d. Referral

IT
Queries

K
a) Complaint List: Complaint list Tab has following options:

N
i. All Complaints:

A
ii. Team Initiated Complaints:
T
b) Complaint Search: By using this option User can search Complaint by entering
A
either Complaint Number, Account Number or Mobile Number.
W

c) Bounced Complaints: Resolver group can bounce the Complaint to the Initiator
A

office for incorrect or incomplete information. For Branches Bounced Complaint have
M

option of Bounced to My Office. Using option Bounced to My Office Branch can see
Bounced Complaints to them and have to respond accordingly.
U

d) QUERIES: If Resolver Group wants clarification regarding complaint from other

K

Office/ Branch/ Region/ Zone/ Resolver Office can use option of Query. For Branches
r.

Query tab has option of My Unit Pending Query. User can view Query Pending with
M

their Department and to be responded. Branch User have to use Submit Query
Response to reply back for particular query raised by Resolver Group.
y:
B
d

1.13. CHEQUE TRUNCATION SYSTEM: CTS 2010

de

Truncation is the process of stopping the flow of the physical cheque issued by a drawer
oa

to the drawee branch. The physical instrument will be truncated at some point en-route
nl

to the drawee branch and an electronic image of the cheque would be sent to the drawee
branch along with the relevant information like the MICR fields, date of presentation,
ow

presenting banks etc.

D

The images captured at the presenting bank level would be transmitted to the Clearing
House and then to the drawee branches with digital signatures of the presenting bank.
Thus, each image would carry the digital signature, apart from the physical endorsement
of the presenting bank, in a prescribed manner. The physical instruments are required to

17
 be stored for a statutory period. It would be obligatory for presenting bank to warehouse
the physical instruments for that statutory period. In case a customer desires to get a
paper instrument back, the instrument can be sourced from the presenting bank through
the drawee bank.

)
77
65
Features of CTS-2010 Standard Cheques:

12
A. Features Visible through Naked Eye:

K
.(A
1) Watermark of Bank's logo and Bank name (Dandy) are available for verification against
light or through UVR machine. CTS India water mark visible against light or through UVR
machine.

IT
K
2) Uniform /standard field placement for Date/Payee Name/Amount in words/Drawer
account number etc. in bilingual form.

N
A
3) Background colour of the cheques: At present background colour of the cheques for
different segment of accounts is as under: T
A
W

 For SB Account: Light gray

 For CA/OD Account: Light orange
A

 For CC Account:Light blue

M
U

4) Majority of the cheques are with printed account numbers and name of the Drawer.
K

Cheques with Account number and other details stamped are to be dealt more carefully.
r.

5) New Rupee Symbol in separate box preceding amount in figures.

M
y:

6) Printers name on the left side with CTS 2010 identification.

B

7) RTGS/NEFT/IFSC Code: - Original cheques should have 11 (Eleven character) with

d

"BARB" followed by 0(zero) and branch 6 digit ALPHA code. If the branch ALPHA is less
de

than 6 character the last field will have XXX's.

oa

B. Features Visible through UVR:

nl
ow

1) Watermark of Bank's logo and Bank name in English and Hindi are available for
verification against light or through UVR machine.
D

2) CTS India water mark visible against light or through UVR machine.

3) UV logo:- Our Bank logo printed with special ink visible only through UVR machine.

18
 C. Other Features:

1) Void Pantograph: - Rectangular space below the Account number field with "VOID"
hidden/embedded. While the word VOID is hidden in all original cheques, the same is

)
visible in all photocopies. (If cheque is not genuine, word VOID cannot be visible in

77
photocopy.)

65
2) Micro Lettering i.e. lines provided for "Payee Name" and "Amount" are printed with

12
"BANK OF BARODA" that can be visible through magnifying glass only. In addition to
existing micro lettering feature i.e., printing of Bank's name (BANK OF BARODA),

K
"Account Number" of customer is also being printed on personalized cheque.

.(A
3) Background of the cheque (Logo & BANK OF BARODA) is printed with washable ink.
(Even a small drop of water will wash ink of original cheque, while this will not in case of

IT
scanned/xerox cheque.) In view of collecting banks responsibility under CTS clearing

K
outward clearing cheques should also be scrutinized for genuineness at locations where
CTS clearing is implemented.

N
A
1.14. Banking Ombudsman Scheme 2006

T
A
The Ombudsman Scheme has been started by RBI under section 35 A of BR Act.

W

Applicable all Scheduled Commercial Banks including Private sector banks and
foreign Banks (including J&K State)
A


M

Ombudsman is appointed by RBI. The appointment will be for 3 years at a time.

 Scope - Complaints relating to deficiency in service in deposit, ancillary services,
U

non adherence of RBI guidelines on advances, delay in sanction or disbursement,

K

time schedules, credit card and direct selling agents. The scope of scheme has
r.

been extended to internet banking, violation of code of banking services,

M

 Before making a complaint to the Ombudsman, the complaint will be made to the
y:

bank. The complainant can file the complaint with the Ombudsman if no reply is
B

received within one month of lodging the complaint with bank or reply received is
not satisfactory.
d


de

Maximum period within which complaint can be filed is 1 year from the date of
receiving the reply from bank. In case reply is not received from the bank,
oa

complaint can be lodged within 13 months from the date of making the complaint
to the bank.
nl

 Ombudsman will not entertain a complaint where (a) case is pending in the court
ow

(1) case has already been the decided by the court (iii) similar case has already
been decided Ombudsman.
D

 Procedure: On receipt of complaint views of bank called to promote settlement by

agreement. If not settled within 1 month, Ombudsman shall announce award. Role
of the Ombudsman is that of Arbitrator with mutual consent.

19
  Maximum amount of award: Rs 20 lakh. In addition to this, award up to Rs 1 lakh
for mental agony.
 In case of credit card maximum claim is Rs 1 lakh.
 The complainant should accept the award within 30 days of receipt of the copy of

)
77
the award. The award shall not be binding on a bank unless the complainant gives
acceptance within 30 days from the date of receipt of copy of award.

65
 If complainant accepts the award, the bank should implement the award within 1

12
month of receipt of acceptance from the complainant and intimate compliance to
the Banking Ombudsman.

K
 If Ombudsman rejects the complaint or award is not acceptable to the

.(A
complainant, he can file an appeal to the Appellate authority (Deputy Governor,
RBI) within 30 days of the of the date of receipt of communication regarding award

IT
or rejection of the complaint.

K
 Bank may also file appeal with Deputy Governor, RBI within thirty days from the

N
date on which the bank receives letter of acceptance of Award by complainant,

A
 In the case of bank, appeal may be filed by a bank only with the previous sanction
of the CMD or ED or CEO of the bank. T
A
 Non-implementation: If award is not implemented, report to Customer service
W

committee of the Board and make disclosure in balance sheet of the bank.
A

Integrated Ombudsman Scheme, 2021 – Overview

M
U

•
K

Centralised processing of complaints: All the complaints submitted through electronic

or physical mode to the Centralised Receipt and Processing Centre shall be assigned to
r.

the Offices of the Ombudsman for further examination. Hence, the complaints may be
M

received at any of the Nodal Offices irrespective of the territorial jurisdiction.

y:

• Timelines for submission of reply: 15 days

•
B

The Ombudsman may, at the request of the Bank in writing to the satisfaction of the
Ombudsman, grant such further time as may be deemed fit to file its written version and
d

documents.
de

• On verification of replied submitted by both the parties, Banking Ombudsman may

oa

 Reject the complaint,

 Pass an advisory, or
nl

 Pass an award
ow

• Bank may accept the ward/file an appeal against the Award.

• There shall be no right of appeal to the Bank in respect of the Award issued on
D

account of non-response or non-furnishing of information sought within the

stipulated time.
• Appellate Authority for filing Appeal - Executive Director in-Charge of the Department of
the Reserve Bank

20