A STUDY ON E-BANKING SYSTEM

AT SYNDICATE BANK

A Project Report
Submitted in partial fulfillment of the requirements for the degree of

POST GRADUATE DIPLOMA IN MANAGEMENT

Submitted by

BHABANI SANKAR UDGATA

(Registration No-08/078)

INSTITUTE OF COMPUTER AND BUSINESS MANAGEMENT

-SCHOOL OF BUSINESS EXCELLENCE
HYDERABAD-500048
 DECLARATION

I hereby declare that this project titled “A STUDY ON E-BANKING

SYSTEM” carried out at Syndicate Bank, Orissa is a genuine work conducted
by me during the year 2009 in partial fulfillment of the award of the degree of
“post graduate diploma in management”.

I further declare that this project is the result of my own effort and has not
been submitted to any other university for the award of degree or diploma.

BHABANI SANKAR UDGATA

(Registration No-08/078)
 ACKNOWLEDGEMENT

I express my sincere gratitude to honorable manager of finance Mr. Bibhu

Bhusan Pradhan, Syndicate Bank, Bhadrak, Orissa for giving me permission to
carry out my project work and for his valuable guidance.

I extend my heart-felt gratitude to my faculty Mr. N. Ramesh Babu, his

valuable guidance in my project and the preparation of report and making this
work successful.

I am also thankful to all the staff of all the departments of Syndicate

Bank, for their co-operation and support.

BHABANI SANKAR UDGATA

(Registration No-08/078)
 CONTENTS

Chapter-1 Page No
Executive summary
Chapter-2: Scope, Objective , limitation of the project
Chapter-3
 Introduction to E-Banking
 E-Banking services
 E-Banking components
 Electronic capabilities
 E-Banking risks and controls
Chapter-4: Research Methodology
Chapter-5: Company profile
Chapter-6: E-Banking in syndicate bank
Chapter-7: Data Analysis
Chapter-8: Findings and Recommendation
Chapter-9: Conclusion and Bibliography
Chapter-10: Annexure
 Chapter 1
Executive Summary
 Executive Summary
Syndicate bank was established in the year 1925; had its first office in the coastal
region of Karnataka, Udupi. It was then named as 'Canara Industrial & Banking Syndicate
Ltd'.The first branch of the bank started its operation in the year 1928 at Brahmavar in
Dakshin Kannada district. By 1937, it had secured its membership as a cleaning house at
Mumbai.

. In 1964, the bank changed its name to 'Syndicate Bank Limited' and the head office
was also shifted from Udupi to Mani pal. In 1984, Syndicate Bank opened its 1000th branch
in Hauz Khas, Delhi. In the same year, it undertook the management of Musandam Exchange
Co. in Muscat. Five years thence, in 1989, Syndicate Bank opened its 1500th branch at
Kanakumbi. In 1999, it raised a capital of Rs. 125 Crore from its more than 4 lakh
shareholders.

E-Banking is defined as the automated deliver of new and traditional banking

products and services directly to customers through electronic, interactive communication
channels. E-Banking includes the systems that enable financial institution customers,
individuals or businesses, to access accounts, transact business, or obtain information on
financial products and services through a public or private network, including the internet.

Electronic banking: known as electronic fund transfer (EFT) uses computer

and electronic technology as a substitute for checks and other paper transactions. EFTs is
initiated through devices like cards or codes that let you, or those you authorize, access your
account.

Moreover my Project report discusses the research that I have done through basically by
means of primary data and secondary data collected from various sources. Interviews were
conducted by Bank Clients and their views were known on the benefits and demerits of E-
banking. Moreover suggestion and recommendations have been given to help Syndicate Bank
to expand it customer base with up to date modern E-Banking services.

On the basis of the findings , it is observed that

  90% of the respondents are dealing with e-banking services among this 60% are
dealing with nationalized bank e-bank services.

 ATMs got first rank and credit cards got second rank in preference of e-banking
services.

 Convenient accessibility and less risk for usage are the main purpose affecting e-
banking services.

 Inadequate knowledge about e-banking services are the most problem faced by the
respondents and demo and advertisement are the most preferred solution to make the
aware of e-banking services.

The objectives of the project are as below.

 To study the E-Banking system at Syndicate Bank.

 To study the customer perception towards E-Banking system at Syndicate Bank.

On the basis of the findings, I offer some more suggestion to make e-banking services more
effectives, which will further accelerate the process of transformation in banks.

The bank should make the ATMs and other e-banking accessible, convenient and
secure from information loss by increasing the number of ATMs.

ATMs, credit cards and online banking are preferred the most by the customers due to
time, cost utilities and efficient services. So the bank should make the effort by arranging
demo-fares or provide information to the customers at the counters to make the e-banking
popular and easier to understand.
 Chapter-2
Scope, Objective and
Limitation
Scope
The study is on E-Banking system of Syndicate Bank, Orissa. The study is limited to
45 days with a sample size of 100 customers.

Objective

The objectives of the project are as below.

 To study the E-Banking system at Syndicate Bank.

 To study the customer perception towards E-Banking system at Syndicate Bank.

 To study the opinion of customer towards on-line and off-line banking experience.

Limitation
The limitation of this project should be

 This study is restricted to Syndicate Bank, Bhadrak Branch, Orissa.

 The sample size taken is 100.

 The time limit is 45 days, which is not adequate to do in depth analysis.

 The data collected from the respondents cannot be taken as completely true.

 Data collected cannot be assured to be free from personal bias.

 The study is an exploratory in nature thus the findings and recommendation can’t be
considered as absolutely correct for implementing.
 Chapter-3
Introduction of E-Banking
 INTRODUCTION OF E-BANKING
E-Banking is defined as the automated deliver of new and traditional banking
products and services directly to customers through electronic, interactive communication
channels. E-Banking includes the systems that enable financial institution customers,
individuals or businesses, to access accounts, transact business, or obtain information on
financial products and services through a public or private network, including the internet.

Customers access e-banking services using an intelligent electronic device, such as a

personal computer (PC), personal digital assistant (PDA), automated teller machine (ATM),
kiosk, or Touch Tone telephone. E-banking can improve a bank’s efficiency and
competitiveness, so that existing and potential customers can benefit from a greater degree of
convenience in effecting transactions.

This increased level of convenience offered by the bank, when combined with new
services, can expand the bank’s target customers beyond those in traditional Markets.
Consequently, financial institutions are therefore becoming more aggressive in adopting
electronic banking capabilities that include sophisticated marketing systems, Remote-banking
capabilities, and stored value programs.

International, familar examples include telephone banking, automated teller networks,

and automated clearing house systems. Such technological advances have brought greater
sophistication to all users, commercial and “the man the street”. A bank may be faced with
different levels of risks and expectations arising from Electronic banking as opposed to
traditional banking.

Furthermore, customers who rely On e-banking services may have greater intolerance
for a system that is unreliable or one that does not provide accurate and current information.
Clearly, the longevity of e-banking depends on its accuracy, reliability and accountability.
The challenge for many banks is to ensure that savings from the electronic banking
technology more than offset the costs and risks involved in such changes to their systems.

E-Banking services

Generally electronic banking provides two types of services.

Such as-
1. Retail services.
2. Wholesale services
RETAIL SERVICES

In retail services the electronic banking provide

 Account management
 Bill payment and presentation
 New account opening
 Consumer wire transfers
 Investment/Brokerage services
 Loan application and approval
 Account aggregation


WHOLESALE SERVICES

In wholesale service the electronic banking provide

 Account management
 Cash management
 Small business loan,applications,approvals or advances
 Commercial wire transfers
 Business-to-business payments
 Employee benefits/pension administration

Since transaction websites typically enable the electronic exchange of confidential

customer information and the transfer of funds, services provided through these websites
expose a financial institution to higher risk than basic informational websites.

Wholesale e-banking systems typically expose financial institutions to the highest

risk per transaction, since commercial transactions usually involve larger dollar amounts. In
addition to the risk issues associated with informational websites, examiners reviewing
transactional e-banking services should consider the following issues.

 Security controls for safeguarding customer information.

 Authentication processes necessary to initially verify the identity of new customers

and authenticate existing customers who access e-banking services.

 Liability for unauthorized transactions

 Losses from fraud if the institution fails to verify the identity of individuals or
businesses applying for new accounts or credit on-line possible violations of laws or
 regulations pertaining to consumer privacy, antimony laundering, anti-terrorism , or
the content , timing , or delivery of required consumer disclosures and

 Negative public perception , customer dissatisfaction , and potential liability resulting

from failure to process third-party payments as directed or within specified time
frames , lack of availability of on-line services , or unauthorized access to confidential
customer information during transmission or storage.

E-BANKING COMPONENTS-

E-banking systems can vary significantly in their configuration depending on a

number of factors. Financial institutions should choose their e-banking system configuration,
including outsourcing relationships, based on four factors:

Strategic objectives for e-banking

Scope , Scale and complexity of equipment , systems and activities;

Technology expertise; and

Security and internal control requirements.

Financial institutions may choose to support their e-banking services internally.

Alternatively, financial institution can outsource any aspect of their e-banking systems to
third parties.

The following entities could provide or host(i.e..allow applications to reside on their

servers)e-banking related services for financial institutions:

Another financial institution,

Internet service provider,

Internet banking software vendor or processor,

Core banking vendor or processor,

 Managed security service provider,

Bill payment provider,

Credit bureau , and

Credit scoring company.

E-banking systems rely on a number of common components or processes. The

following list includes many of the potential components and processes seen in a typical
institution:

Website design and hosting ,

Firewall configuration and management ,

Intrusion detection system ,

Network administration ,

Security management ,

Internet banking server ,

E-commerce banking applications(e.g., bill payment , lending , brokerage )

Internal network servers ,

Core processing system ,

Programming support , and

Automated decision support systems.

These components work together to deliver e-banking services. Each component represents a
control point to consider.

ELECTRONIC CAPABILITIES-

Electronic capabilities can be segregated into three (3) categories by degree of

Functionality. These levels range from Level I to Level III systems.

Level 1 - Information-Only Systems

Banks should ensure that consumers are alerted to the potential risks associated with
unencrypted electronic mail sent over such a medium. Information-only systems are defined
as those that allow access to general-purpose marketing and other publicly available
information, or the transmission of non-sensitive electronic mail.
Level 2 - Electronic Information Transfer Systems

Since communication and system security risks include data privacy and
Confidentiality, data integrity, authentication, non-repudiation, and access system Design,
some risk mitigation methods are therefore necessary.

Electronic information transfer systems are interactive in that they provide the ability
to transmit sensitive messages, documents, or files among a group of users, for example, a
bank’s web site that allows a customer to submit on-line loan or deposit account applications.

Level 3 - Fully Transactional Information Transfer Systems

Fully Transactional Information Transfer Systems represent the highest degree of

Functionality and also involve high levels of potential risks.

These systems provide the capabilities for information-only applications, electronic

information transfer systems, as well as on-line, transactional banking services. These
capabilities are provided by interactive connectivity between a customer’s device and the
bank’s internal systems. Many systems will however involve a combination of these
capabilities.

ELECTRONIC BANKING RISK AND CONTROLS

Overview

Each financial institution should apply guidelines based on its scope and level
of sophistication. Typically, electronic banking amplifies the scale of exposure of banks to
Traditional risks, such as transaction, strategic, reputational, and compliance risk, among
others. Many of these risk categories have been identified in the Basel Committee’s Core
Principles for Effective Banking Supervision, published in September 1997.

As information systems become more connected and interdependent, the risk of

computer intrusion will increase. Arguably, this is the single most important aspect of the
‘new’ electronic delivery system.

Banks with weak physical security and systems substantially increase their exposure
to a plethora of risks, many of which could lead to collapse. Potential consequences include
direct dollar loss, damaged reputation, improper disclosure, and lawsuits or regulatory
sanction.
E-banking should be consistent with the bank's overall strategic and business
plans, and adequate expertise should be employed to operate and maintain such systems.

It is therefore imperative that e-banking risks be managed as part of a bank's overall

risk management process. The levels of risk assumed need to be consistent with the bank's
overall risk tolerance, and not exceed its ability to manage and control risks.
 The Central Bank of Barbados expects that bank management and staff will ensure
that they possess the pre -requisite knowledge and skills necessary to understand and
effectively manage e-banking risks regardless of how a system is developed or operated.
Controls should take into account the institution’s risk exposure.

Approach

Risk mitigation should include (i) controls (ii) security policy and awareness
Programmers. Banks’ management will be expected to manage the varying levels of risks
Posed by electronic transactions.

(i) Controls: A security programmer should be in the form of a bank-wide

implementation of physical and data security controls to protect critical information
and physical assets from internal or external compromise.

E-banking systems require effective and reliable controls to maintain data Integrity,
ensures customer privacy, and protects the bank's computer and telecommunications systems
from unauthorized intrusions, misuse, or fraud.

A single password without an accompanying card, key or combination of passwords,

may not provide sufficient authentication of bank customers. Banks should use a combination
of access, authentication and other security devices to create a secure e-banking environment.

These should typically include passwords, firewalls, and encryption, among others.
Security controls4 that govern network and data access, user authentication, transaction
verification, and virus protection should be developed. In general, banks should authenticate
the identity of e-banking customers prior to accessing personal account information or
engaging in electronic transactions.

Due to security and risk management concerns associated with specific e-banking
Systems, banks require stronger authentication methods than those provided by most
traditional systems.

(ii) Security Policy and Awareness Programs :

The security programme should comprise policies, procedures and controls necessary
to safeguard the bank's information, define individual responsibilities, and describe
enforcement, contingency and disciplinary actions following non compliance. A
comprehensive information security policy should outline a proactive and ongoing program
incorporating three components:

Prevention:

Prevention measures usually include sound security policies, well-designed

system architecture and properly configured firewalls backed by strong authentication
programs. Typically, there are two categories of prevention measures: (a) Vulnerability
assessment tools; and (b) penetration analyses.
Detection:

Detection measures may be enhanced by the use of intrusion detection systems

(IDSs) that act as a burglar alarm. Alarms detection measures involve the analysis of
available information to determine whether or not an information system has been
compromised, misused, or accessed by unauthorized individuals alert the financial institution
or service provider to potential external break-ins or internal misuse of the system being
monitored.

Response:

Banks should have an effective incident response programme outlined in a security

policy that priorities incidents, discusses appropriate responses through appropriate channels,
and establishes reporting requirements.
 Chapter-4
Research Methodology
 RESEARCH METHODOLOGY

‘Research’ means a scientific and systematic search for pertinent information on a

specific topic. Research is a careful investigation or inquiry especially through search for new
facts in any branch of knowledge. Research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deductions and reaching conclusions; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis.

‘Methodology’ is defined as “the study of methods by which we gain knowledge, it

deals with cognitive processes imposed on research by the problems arising from the nature
of its subject matter”

TYPE OF RESEARCH

Descriptive type of research has been used in this study; it involves surveys and fact
findings enquire of different kinds the major purpose of descriptive research is the description
of the state of affairs, as it exists at present. The main characteristics of this method are that
the researcher has no control over the variable; he can only report what has happened or what
is happening. The methods of research utilized in descriptive research are survey methods of
all kinds, including comparative and correlation methods.

STATEMENT OF OBJECTIVES

 To study the E-Banking system at Syndicate Bank.

 To study the customer perception towards E-Banking system at Syndicate Bank.

RESEARCH INSTRUMENT

The research instrument used in this study is “structured questionnaire”. Structured

questionnaire are those questionnaire in which there are predetermined question relating to
the aspect, for which the researcher collects data. The questions are presented with exactly
the same wording and in the same order to all the respondents.

QUESTIONNAIRE DESIGN

The structured questionnaire for consumers was framed with the following types of
questionnaires.

 Open ended,

 Closed ended,
  Multiple choice,

 Rating and Ranking types of questions.

DATA COLLECTION

Data refers to information or facts. It includes numerical figures, non-numerical

figures, descriptive facts, and qualitative and quantitative information. The task of data
collection begins after a research problem has been defined and research plan has been
decided.

The nature of the data is both Primary and Secondary data.

Primary data

The primary data are those that are collected through questionnaire and direct
personal interview. The questionnaire was framed in such a manner to obtain correct
information, graded suitably for the study. All the questionnaires were collected through
personal contact from the Authorised Dealer.

Secondary data

Secondary data about the company profile and other details were collected from the
company website and other website.

SAMPLING PROCEDURE

Convenience sampling has been used in this study. Convenience sampling is used for
selection of homogeneous sample for the study. It refers to selecting a sample of study
objects on convenience. It is a non-probability sampling. Thus research study may include
study objects, which are conveniently located. Research findings based on convenient
sampling however, cannot be generalized.

SAMPLING SIZE

Due to time and resource constraint, the sample size has been taken as 1oo.In
consultation with the bank guide and the project guide.

PERIOD OF STUDY

During the period the following steps were taken:

 Objectives were set and questionnaire was finalized.

 Data were collected and recorded.

 Data were analyzed and interpreted.

 Reports were finalized

 Chapter-5
COMPANY PROFILE
 The bank was established in the year 1925; Syndicate Bank had its first office in the
coastal region of Karnataka, Udupi. It was then named as 'Canara Industrial & Banking
Syndicate Ltd'. The bank was initiated by a trio - Sri Upendra Ananth Pai, a businessman, Sri
Vaman Kudva, an engineer and Dr.T M A Pai, a physician, with a capital of Rs. 8000.

During that time, the crisis in the handloom industry crippled the local weavers
completely. The main aim of Syndicate Bank was to provide financial assistance to them, by
mobilizing small savings from the community.

The first branch of the bank started its operation in the year 1928 at Brahmavar in
Dakshin Kannada district. By 1937, it had secured its membership as a cleaning house at
Mumbai.

The bank with its socio-economic aim was making extensive growth and
advancement and entered Foreign Exchange business by opening Foreign Exchange
Department at Bombay. In 1964, the bank changed its name to 'Syndicate Bank Limited' and
the head office was also shifted from Udupi to Mani pal.

The bank had then set up an Economic Research Department, being one of the first
few banks to emphasize on research in banking, even before Nationalization. In 1971, it
opened the first specialized branch in foreign exchange, in Delhi. Five years later, it opened
its first overseas branch opened at London.

In 1984, Syndicate Bank opened its 1000th branch in Hauz Khas, Delhi. In the same
year, it undertook the management of Musandam Exchange Co. in Muscat. Five years thence,
in 1989, Syndicate Bank opened its 1500th branch at Kanakumbi. In 1999, it raised a capital
of Rs. 125 Crore from its more than 4 lakh shareholders.

Next year in 2000, the bank established its first specialized Capital market services, at
Mumbai. In 2003, Syndicate bank entered into a MOU with Bajaj Allianz, for distribution of
life insurance products. In 2004, Syndicate bank amalgamated with United India Insurance
co.ltd. for distribution of Non-life insurance products.
 In 2004, Syndicate Bank also started utility bill payment services through Internet
banking introduced. In 2005, the bank commenced the online reservation of railway tickets
through Indian Railway Catering & Tourism Corporation Ltd for its customers. It was during
this time that it entered into a MOU with SFAC for promoting of investments in Agri-
business products.

The 2000th branch was opened at Tondiarpet, Chennai, in 2006.In the same year, the
bank commenced the first BPO outfit of a Nationalized bank, Syndicate services limited. This
was a wholly owned subsidiary of Syndicate bank.

With the age of progressive banking, Syndicate Bank has created a name for itself in
the last 80 years. Rooted in rural India, the Bank has a clear picture of the grass root realities
and a vision of future India. Changing with the changing times, the Bank has well equipped
itself with all the facilities of the new age, without, however, altering its distinctive socio-
economic and cultural culture.

Syndicate Bank's unique principle of mutual development, of both the Bank and the people,
has won it a long list of clientele, which includes both the rural and the semi-urban class.

Product and services in Syndicate bank

Product and services –

There are four type of products Syndicate bank provided us. These are

 Personal loan products

 Agriculture loan products

 SME loan products

A) Personal loan products-

The Bank is meeting varied personal credit requirements of different

classes of people through the following loan schemes under personal banking. Such as
  SyndSaral

 SyndSenior
 SyndRent
 SyndVahan
 SyndSwarnaExpress
 SyndPigmy
 SyndKisan
 SyndNivas
 SyndNivas Plus
 SyndVidya
 SyndVidyarthi

 Solar Water Heating Systems

The first personal loan product is

SyndSaral -

Purpose: To meet urgent personal credit requirements

Eligibility: Permanent employees of Central / State Government Offices / Undertakings /

reputed companies / firms / educational institutions. Non-salaried class like Doctors /
Engineers / Lawyers / Chartered Accountants / Architects / Consultants and Pensioners

Quantum for Clean loan :

Salaried Class: 12 months gross salary with salary credit and maximum Rs.3 lakh with letter
of undertaking from the employer

Pensioners:

 Aged < 65 yrs: 10 months’ gross pension with a maximum of Rs. 2 lakh.

 Aged 65-70 yrs: 6 months gross pension with a maximum of Rs. 1 lakh.

 Aged > 70 yrs: 5 months gross pension-max. Rs.50000/-

Non-salaried Class: 50% of gross annual income as per Income Tax Assessment Order
(ITAO) (100% of average gross annual income, as per ITAOs of immediate preceding 3
years) or 60% of value of immovable property to be mortgaged to the Bank (subject to
maximum amount of Rs. 5 lakh)

Quantum for Secured Loan : 80% of purchase price of NSC / IVP / KVP if completed 24
months from date of purchase and 65% of purchase price if completed 13-23 months);
80% of surrender value of LIC policy / purchase price of RBI Relief Bonds / other
Government securities.

Repayment: Maximum 60 months in case of loans and overdraft against Govt. securities. to
be renewed once in 2 years

Rates of Interest

Category
For Salaried Class For both loans PLR + 0.25% (if salary is credited at Branch)
and overdraft PLR + 1.25% (for other Salaried Class)
For Non-Salaried Class For loans PLR + 1.25%
Secured
Unsecured PLR + 1.25%

SyndSaral Loans, fully secured by approved securities (IVP, NSC, KVP, LIC policies,
RBI Relief Bonds etc) with suitable margin, interest to be charged at PLR

Requirements:

 Salary Certificate / letter of undertaking from the employer.

 ITAO for non-salaried class / property documents where ITAO is not available.

 Third party guarantee acceptable to the bank.

 Valid mortgage of immovable property/ pledge of securities.

 Post dated cheques in exceptional cases.

SyndSenior –

Purpose:

Any bonafide personal / business credit requirement

Eligibility:

Pensioners in receipt of regular monthly pension from Central / State Governments / Public
Sector Units / Defence Establishments and other government or quasi government institutions
whose pensions are being routed through accounts held with our Bank

Security

Unsecured

Nature of facility and documentation

Demand Loan (Clean)

Rate of Interest

PLR

Surety

i) Surety need not be insisted for loans up to 6 months gross monthly pension or Rs.50000/-
whichever is lower

ii) In all other cases the surety of a family member or that of a third party shall be obtained.
The surety should have adequate means / income.

Repayment

In EMIs not exceeding 72 months

Cutback norms

50% of income from verifiable sources

Processing Fees

For loans up to Rs.50, 000/- - No processing charges

For other loans - Flat processing charges of Rs.200 per loan

SyndRent-

Purpose: To meet urgent personal expenses/credit needs

Eligibility: Bonafide owners of residential / commercial property

Quantum: 75% of the rental value

Repayment: Not exceeding 60 months

Rate of interest: PLR + 2.00%

Requirements:
 Mortgage of property.
 Lease agreement.

 Consent from the lessee (tenant).

 Third party guarantee acceptable to the bank.

SyndVahan-

Purpose: To buy new / second hand 4-wheeler or new 2-wheeler

Eligibility: Persons having minimum annual income of Rs. 1 lakh for 4 wheeler and
Rs.50000/- for 2 wheeler.

Quantum:
4-wheeler (New): 95% of on-Road price (inclusive of insurance, Road Tax and Registration
Charges) plus accessories (max. 10000/-) or 3 times gross annual income, whichever is less,
for new 4 wheelers
4-wheeler (Old): 70% of value of the Car or 3 times gross annual income or Rs. 3.00 lakh,
whichever is less.
Note: Income of spouse/ major children will also be considered for purpose of determining
eligibility and quantum of loan.
New 2-wheeler: 95% of on-Road price (inclusive of insurance, Road Tax and Registration
Charges) of the new two wheeler and accessories (max. Rs.500/-) or 12 months gross salary,
whichever is less, subject to a maximum of Rs.60000/- for all category of new two wheelers.

Repayment : 72 / 48 months for new/old 4 wheelers and 60 months for new 2 wheelers.
Rate of interest :

S.No. Particulars Rate of Interest

(% p.a. compounded monthly)
1 For 2-wheelers and 4 wheelers PLR
Requirements :

 Salary Certificate or

 ITAO for non-salaried class/property documents where ITAO is not available

 Proforma invoice

SyndSwarnaExpress

Purpose- Jewel loans/Overdraft for any genuine business/personal credit requirement.

Eligibity – Existing and new customers who are properly introduced to the bank.

Quantum-Scale of finance- Rs.800/-per gram of 22 carat gold or 65 %( 70% for hall

marked jewellery) of the market value of jewels, whichever is lower.

Security- Only pledge of Gold Jewels of adequate value/Hall marked jewellery, with
stipulated margins.

Guarantee- Not required.

Disbursement– It will be as per requirement of the borrower and purpose.

Repayment: - Maximum up to 24 months.

Loan repayable in lump sum: - principal along with interest (compound

monthly) repayable in lump sum within 24 months.

Overdraft facility: - To be renewed once in two years, interest to be serviced

and at no point outstanding to exceed the sanctioned limit.

Rate of Interest- PLR + 1.00%

Processing charges- Rs.1.50 per Rs.1000/-with a minimum of Rs.10/-

Jewel appraiser fees- 50 ps per Rs.100/-subject to a minimum of Rs.2/-

SyndPigmy-
Purpose: To meet any contingent requirement of pigmy depositors.

Eligibility: Pigmy depositors with regular contribution for 24 months.

Quantum: 3 times pigmy deposit balance with maximum Rs. 50000/-.

Repayment: 35 months for loans and overdrafts renewable on yearly basis.

Rate of interest : PLR

Security : Pigmy deposit

Margin : 25%

Requirements: Third party guarantee for the amount beyond pigmy balance. Contributions
to Pigmy Deposit should be continued.

SyndKisan-

Purpose: To meet urgent personal needs / purchase consumer durables like TV, Fridge,
Washing Machine, Audio / Video Equipment etc.

Eligibility : Agriculturists
Quantum: 50% of average gross annual income or Rs. 1 lakh which ever is less for clean
loans. 80% of the consumer durable or 50% of annual income or 0.50 lakh whichever is less.

Repayment : Not exceeding 3 years

Requirements :

a) Proof of income.

b) Third party guarantee acceptable to the Bank.

SyndNivas –
Housing Loan Scheme
Details for Product Literature
Purpose
  For construction/acquisition of a house/flat or for acquiring a site and building a
house thereon.

 For acquiring a new house or existing house not more than 25 years old.

 For making extensions/additions to existing house. For NRIs, loan available for
acquisition of house for self-occupation on return to India.

 For acquisition of furniture/fixtures including air conditioners, geysers, fridge, cots,

tables, sofas etc which form part of improvements to the home purchased or
constructed out of the Housing Loan.

Eligibility

 Self-employed/business class having gainful employment in a profession or business

for a period of minimum period of 5 years.

 Individuals not owning a house/flat at the place of work / business / profession having
sufficient and regular income.

 NRIs holding Indian passport with adequate repayment capacity.

 Applicant should be a major and not more than 55 years of age.

 For salaried class, applicant should have completed 5 years of service and the
remaining period of service left shall not be less than 5 years.

Quantum

For Salaried persons: Maximum of 72 months gross salary (including salary of spouse)

For Others : Maximum of 6 times average annual income based on Income Tax Assessment
Order/IT returns for the past 3 years.
Security

 First mortgage of the site/house/flat to be constructed/acquired or as advised by the

Legal Adviser/Law Officer of the Bank.

 Hypothecation of furniture & fixtures.

Margin
  25% of total project cost for construction/purchase of new flat or house up to 5 years
old.

 30% for acquiring house which is above 5 years old.

 30% of the estimated cost of addition/extension/repairs/renovation.

Processing Charges
 Rs.700/- per lac or part thereof with a minimum of Rs.1000/- at present. (Processing
charges are subject to change from time to time)

Repayment
For acquiring a house

 Equated monthly installments with maximum repayment period of 25 years including

repayment holiday of 18 months where eligible.

 In case of salaried persons, repayment period shall not extend beyond superannuation
and for others beyond 65 years of age.

For repairs/renovation - Maximum repayment period is 5 to 7 years.

Surety

A good third party security acceptable to the Bank. The following important documents are to
be submitted along with the application

 Proof of income.

 Original title deeds of the property with Encumbrance Certificate and agreement for
sale.

 Permission for construction with approved plan issued by Competent Authority.

 Estimation of construction cost, valuation report in case of purchase of ready built

house/flat.

 Any other documents depending upon the individual case.

SyndNivasPlus –

Purpose
To meet any genuine personal or business credit requirement

Eligibility

Housing Loan customers who have demonstrated a satisfactory repayment record of 2 years
or more

Security

Extension of charge for the loan value on the mortgage of the residential property created
already towards Housing Loan

Rate of Interest

PLR

Surety / Co obligant

All the persons who had joined the mortgage transaction under the Housing Loan, shall
jointly execute the documents for this facility also

Repayment

In not more than 60 EMIs

Processing Fees

No processing fees.

SyndVidya – A Syndicate Bank’s Education Loan Scheme

Syndicate Bank’s involvement in education dates back to the decades prior to the
Nationalization of Banks. The Bank was also the first to set up a string of Rural Training
Institutes aimed at empowering the young India in rural areas through entrepreneurial
education and training.

Eligibility Criteria

 Any student who is a major representing himself or a minor student represented by

parent or guardian of Indian nationality.

 Must have secured admission on the basis of merit to professional/ technical/other

courses through entrance test/selection process. Deviation/relaxation is also permitted
under special circumstances.

 Must have secured admission to foreign universities/Institution (for studies abroad).

Quantum of Loan

 Need based finance to meet expenses such as fee payable to college / school / hostel,
examination fee, cost of books, travel / passage fare for studies abroad etc.

 Capitation fee / donation / external coaching fee are not eligible for finance.

 Maximum of Rs.10.00 lac for studies in India and Rs.20 lac for studies abroad.

Margin

 For loans up to Rs.4 lac - No Margin required.

 For loans above Rs.4 lac - 5% for study in India and 15% for study abroad.

Security

 For loans Up to Rs.4.00 lac - NIL.

 For loans above Rs.4.00 lac and Upto Rs.7.50 lac - Collateral in the form of
satisfactory third party guarantee acceptable to the Bank.

 For loans above Rs.7.50 lac - Collateral security with 25% margin covering the loan
amount and assignment of future income of the student for payment of loan
installments.

NOTE: In all the above cases, the parent / guardian shall join the transaction as co-borrower
Interest (PLR presently 13.25%)

 For loans upto Rs.7.50 lakh - PLR minus 2.00%

 For loans above Rs.7.50 lakh - PLR minus 2.50%

 No processing charges/service charges are levied for educational loans

Repayment
 In 5 to 7 years commencing one year after completion of the course or 6 months after
securing the job whichever is earlier.

Capability Certificate
 Capability certificate for students going abroad for higher studies are also issued on
production of financial and other supporting documents.
SyndVidyarthi-

Purpose : To meet the recurring expenses of contingent nature that may have to be incurred
by students pursuing professional courses

Eligibility 1)Students of 18 years and above of age pursuing professional courses

2) All professional and management courses listed in our educational loan scheme would
be eligible for coverage
3) Coverage under this scheme can be provided to all eligible students irrespective of whether
or not they have availed an Education Loan from our Bank / other banks.

Quantum - Not exceeding Rs.10000/-

Nature of facility - Overdraft subject to renewal every year

Mode of operation

A no frills, zero balance savings bank account, similar to SyndSamanya, shall be opened
under the head ‘SyndVidyarthi’ by the eligible student in which account debits upto the
sanctioned limit may be permitted. The students availing this facility will also be issued debit
cards for operating the account provided the branch opening the account is authorized to issue
debit cards.

Security Unsecured

Rate of Interest PLR of the Bank

Surety

No surety to be obtained. However a letter the format provided is to be addressed to the

parent / guardian of the student informing him of the Bank’s intention to sanction
SyndVidyarthi facility and requesting him / her to give consent for the same. The facility is to
be made available only on receipt of the consent from the parent / guardian.

Repayment

 While the whole or part of the limit of Rs.10000 may be availed through a single
 withdrawal or multiple withdrawals on different dates, the account should be brought to
credit once a year

 The entire outstanding in the account is to be cleared three months before completion of
studies
Processing Fees No processing fees

B)Agriculture loans- There are different type of agriculture loan syndicate bank provided
for the benefit of the people .These are

 SyndSwarna

 Synd Jai Kisan Loan Scheme

 Jewel Loan Scheme for Agriculture

 Syndicate Farm House Scheme

 Farm Mechanizations Schemes

 Finance for Hi-tech Agriculture

 Development of Irrigation Infrastructure

 Tenant Farmers Land Cultivation Loan Scheme

 Land Development Schemes

 Purchase of Land for Agricultural Purpose

 Syndicate 2/3/4 Wheelers Scheme

 Animal Husbandry Scheme

 Syndicate Kisan Credit Card (S.K.C.C)

 Solar Water Heating Systems

SyndSwarna-

Purpose:
 Term loans / Overdraft limit can be granted for all purposes.
Eligibility:

 Bonafide Individuals pursuing such activity like retail trade, small business,
professionals, self-employed, agriculturist and having any other source of income who
are properly introduced to the bank and only through branches having the services of
approved jewel appraisers.

Nature of Facility

 Term Loan / Secured Overdraft.

Quantum of Loan / Limit

Where the jewel loan / overdraft is Rs. 850/- per gram of 22 carat gold or 80% ( 85% for
required for period not exceeding hallmarked jewels ) of the market value of jewels,
12 months whichever is lower for Priority Sector Advances

Where the jewel loan is required for Rs. 700/- per gram of 22 carat gold or 65% ( 70% for
period exceeding 12 months and hallmarked jewels ) of the market value of jewels,
upto 24 months whichever is lower for Priority Sector Advances

The Income generation capacity of the applicant will also be taken into account before
sanctioning. In case of Secured Overdraft facility the maximum limit is restricted upto
Rs.10 Lac

Concessional terms for Jewel Loans / overdraft against HALLMARKED JEWELLERY:

Concession is given for jewel loans / OD in case of Hall marked
jewellery by way of 5% relaxation in margin and 0.25% concession in rate of interest across
the board.

Repayment:

 In Case of of Term Loan

Maximum 12 to 24 monthly installments along with interest. However, in case of

agriculturists, half yearly/yearly installment can also be stipulated depending on income
generation & seasonality,

 In case of Secured Overdraft the facility to be renewed / reviewed every year

Jewel Appraiser Fees-

 50 Ps per Rs.100/- subject to a minimum of Rs.2/-.

Processing Charges-

Nominal Processing Charges will be collected at the time of sanction.

SyndJaikisanloan scheme-

To simplify the system of credit delivery to the farmers, taking a holistic view on their credit
requirement covering entire gamut of expenditure related to investments on Agriculture,
Contingencies, Consumption and other pressing social obligations, the Bank has introduced a
hassle free farmer friendly credit scheme called “SyndJaiKisan”

Eligibility criteria:

 All existing farm loan customers from the operational area of the Bank, with
satisfactory past track record for a period of 2 years and owning irrigated lands and
cultivating at least two crops annually or cash crops or plantation crops. Farmers
cultivating single crop with assured irrigation are also eligible.

 Farmers engaged in Pisciculture and Scampiculture activity in the farm ponds established
on their own lands.
 Farmers engaged in diary, goatery, piggery and taking up the activity in a scientific
manner in the farms established on their own lands.
 The farmer should have already mortgaged/ created charge on their lands in favour of the
Bank or willing to offer lands as security by way of mortgage / charge creation to the
Bank.
 Major portion of the investment should be directly related to farm development.
 For consumption and other pressing social obligation there is maximum ceiling of 30% of
total limit to be sanctioned.

Quantum of loan:

The quantum of loan will be the least of the following:

 50% of the value of the property offered as security (40% of the value of the property in
case of farmers engaged in Pisciculture & Scampiculture activity).
 Five times the annual income of the farmer from agriculture and allied activities.
 Total requirements of the farmer.
 Subject to a minimum of Rs. 25000 and maximum of Rs. 15.00 lakh.

Release:

As and when required. Wherever possible, farmers have to submit vouchers, receipts etc. to
the records of the branch.

Repayment:

To be repaid within a maximum period of 7 years based on expected time of harvesting/

marketing of farm produce. Repayment holiday upto 18 months based on the requirements to
be decided on case-to-case basis.

Security:

Mortgage/charge creation on agricultural lands having clear title

Jewel loan scheme for Agriculture

Bank provides jewel loans to agriculturists for their agricultural credit needs on easy terms
and at low cost:
 Lending at Rs. 850/- per gram on 22 carat gold or 80% of market value of the jewel
(85% for Hall Marked jewels) whichever is lower for jewel loans with a repayment
period upto 12 months.
 Lending at Rs. 700/- per gram on 22 carat gold or 65% of market value of the jewel
(70% for Hall Marked jewels) whichever is lower for jewel loans with a repayment
period exceeding 12 months and upto 24 months.

 Lowest interest rate at 7% per annum for loans upto Rs. 3.00 lac availed for crop
production purposes (Kharif 2008 & Rabi 2008-09) and PLR-3.00% for loans upto
Rs. 50,000 for other agricultural purposes against pledge of jewels.

 Service charges exempted for loans upto Rs. 25,000.

Loans issued on all working days.

Syndicate farm house scheme

Syndicate Farm House Scheme - Bring Home the Happiness

 The scheme is meant for farmers to enable them to have a decent dwelling house
which also takes care of other requirements such as cattle shed, drying yard, farm
implements shed.

 Credit support is extended up to a limit of Rs.20 lakh for construction of farm house.
Loans for repair of damaged houses are also extended in rural and semi-urban areas
 up to Rs.1.00 lakh.

 Loan is available for purchasing ready built house and also construction of additional
farm house. Maximum repayment period is 20 years for new farm house and five
years for repair of farm house and the repayment period is linked with the cash flow.

 The borrower should be an agriculturist with assured source of income and should not
be more than 55 years of age Margin to be contributed is 25% of the estimated cost of
construction / repair.

 No conversion of land is necessary and no income proof insisted.

Farm mechanization schemes

Farm Mechanization Schemes - For efficient and timely farming

Medium to long term loans are extended to farmers for

 Purchase of Tractors.

 Power Tillers and Small H.P. Tractors.

 Combine Harvesters.

 Threshers and Sugarcane Crushers.

 Sprayers, Dusters and other equipments.

Finance for hi-tech agriculture

Finance for Hi-tech Agriculture - Financial support available for

Medium to long term loans are extended for

 Tissue Culture and establishment of Green Houses.

 Mushroom Production and Processing.

 Production of Fruits, Vegetables and Cut flowers.

 Export of Horticultural Products.

 Traditional and non-traditional Plantations.

 Aquaculture.

 Agro-processing Industries.
  Aromatic and Medicinal Plants.

 Cold Storage units.

Development of irrigation infrastructure

Development of Irrigation Infrastructure - For greater and sustained production

 Medium to long term loans with repayments upto 15 years.

 Construction of Open Wells, Bore wells, Tube wells, Check dams, Irrigation Tanks
and Pump sheds.

 Repair of Existing Wells.

 Laying out Pipeline, Sprinkler and Drip Irrigation system.

 Lift Irrigation projects.

 Repayable in convenient Quarterly/Half Yearly/Yearly installments.

 Loan amount is linked with approved project cost.

 Composite Developments can also be taken up.

Land development scheme

Land Development Schemes - For increasing productivity

 Leveling of Land.

 Contour Bunding and Terracing.

 Land reclamation and to treat Acid and Alkaline soils.

 Surface and Subsurface Drainage System.

 Application of Fresh Soils to the Garden.

 Fencing including Electrical Fencing.

Syndicate 2/3/4 wheeler scheme

Syndicate 2/3/4 Wheelers Scheme - For convenient Farm Management

Financial assistance available for Purchase of 2/3/4 wheelers.

 Medium term loans are extended for purchasing.

 Two wheelers such as Scooter / Motorcycle / Mopeds.

 Pickup vans, Luggage carriers, Cars, Jeeps and Vans.

Animal husbandry scheme

Animal Husbandry Scheme - For supplementary and sustained stream of income

 Medium term Composite loans extended.

 Under the scheme, the activity can be taken-up as a whole time as well as subsidiary
occupation.

 Support available for the establishment of mini as well as Commercial Dairy Units.

 Eligible purposes include Purchase of quality Animals, feeds, Equipments and

machinery such as Deep freezers etc.

 Construction of Cattle shed and silage.

 Establishment of Mini Milk Processing Plant, Calf Rearing units.

 Establishment of Broiler and layer poultry Farms, hatchery units.

 Construction of poultry shed, Egg Store, Purchase of Chicks, Feeds etc.

 Establishment of piggery Breeder and fattener units.

 Inland and Deep sea fishing.

Syndicate Kisan credit card

Syndicate Bank, which has been the foremost bank in the country in providing
financial assistance to farmers, is proud to introduce the Syndicate Kisan Credit Card
Scheme. The objective of the new scheme is to meet the credit needs of the farmers for
cultivation of crops and other requirements in a very convenient manner. Farmers, belonging
to villages served by Syndicate Bank, who are not defaulters in respect of earlier loans and
who have crop loan requirement, are eligible to avail the facility.

This facility is provided to the farmers for meeting expenditure connected with
cultivation of various crops, maintenance of small dairy / poultry units, nonfarm activity and
consumption needs to some extent. The farmers having this facility can deposit money in the
account when they realize their income and withdraw it whenever needed. Farmers have to
pay money into the account after harvest season and have to operate the account regularly.

The facility is valid for 3 years. However, Bank will review the operation in the
account annually and decide about continuation of the facility .Personal Accident Insurance
Cover available upto Rs. 50,000 for farmer’s upto 70 years of age. Minimum credit balance
of Rs.500/- and above in the account between 10th and last date of the month will earn
interest at Savings Bank rate. Rate of interest on the facility will be as fixed by the Bank from time
to time.

A. SME LOAN PRODUCTS

The various Loan Schemes under SME are as follows:

 Synd Udyog
 Synd Vyapar

 Synd Small Credit

 Synd Shakthi

 Synd Laghu Udhyami Credit Card (SLUCC)

 Synd Swarozgar Credit Card (SSCC)

 Synd General Credit Card (SGCC)

 Prime Minister's Employment Generation Programme (PMEGP)

Synd Udyog

Purpose : Scheme for financing small and medium entrepreneurs

Target Group : Manufacturing Units, Trading Units & Service Entities

Eligibility:

 Credit requirement of the applicant party/unit shall not be more than Rs.
 50 lacs.
 The annual sales/revenue turnover of the applicant party / unit shall not
be more than Rs. 250 lacs

Nature of facility : Overdraft/Loans, Bill Limit, LCs/BGs offered in one

package at competitive rates within a predetermined overall limit (not
exceeding Rs. 50 lac)

Synd Vyapar

Purpose: To meet the credit needs of traders

Eligibility: All Traders

Quantum: Maximum Rs. 25 lakhs in the form of overdraft

Repayment: To be renewed once in 2 years

Rate of interest: Upto Rs.2 lakhs: PLR; Above 2 lakhs: Depending on credit rating of the
borrower

Security: Mortgage of property / Pledge of NSC / KVP / LIC / RBI Relief bond and
hypothecation of stock in trade

Margin: 40% on immovable property, 15% on other securities

Requirements: Financial statements for limits of over Rs. 10 lakhs.

Synd small credit

 The scheme aims at entrepreneurs of small means such as manufacturers, retail

traders, professional & self-employed persons, artisans and those engaged in making
handicrafts, village / cottage industries & other non-farm income generating activities.

 Facility available at all our branches where “Pigmy” scheme is in operation, in

clusters of not less than 20 accounts in an area

 No collateral security. Only hypothecation of assets created out of bank loan, lien on
“Pigmy 1928 & Pigmy Plus 2007” account and a credit worthy third party guarantee
  Easy repayment at the convenience of the borrowers. The repayment is linked to day
to-day contributions towards “Pigmy” account, at the doorsteps of the customer

 Contributions towards pigmy can be at the convenience of the customer. It is not fixed

 Excepting for execution of documents at branch level, doorstep-banking facility is

extended to the customer through Pigmy Agents.

 The rate of interest is at PLR-0.50%

 1.0% rebate in interest for prompt repayment to be provided at the closure of the
account

 A step towards comprehensive and wholesome financial inclusion

Synd Shakthi

Artisan friendly scheme for extending need based credit for purchase of power tools:
Objectives:
 To provide credit for purchase of power toolkits and need-based working capital to
the artisans, enabling them to upgrade the level of technology and improve their work
efficiency.
 Apart from need based credit from the Bank, the prospective borrowers under the
scheme will get the additional benefits offered by M/s MICO BOSCH, such as
extended warranty & servicing, free training in using the power tool kits, special
reduced prices for toolkits etc.

Nature and quantum of loan:

Financial assistance may be either only terms loan or both term loans along with need based
working capital with a maximum ceiling of Rs. 1.00 lakh per borrower. Wherever composite
loan is considered under the scheme, the facility shall be arranged in two components.
Rate of interest: PLR (13.00% at present).
Security:
 For loans upto Rs. 25000: Hypothecation of Power Tool Kits to be purchased.
 For loans above Rs. 25000: Hypothecation of Power Toll Kits and credit worthy third
party guarantee.

Margin:
 For loans upto Rs. 25000: No margin.
 For loans above Rs. 25000: 5 to 10% margin.
Repayment:
 Term loan component: Repayable in 5 years in equated monthly installments with a
repayment holiday of 3 months.
 Working capital component in the form of overdraft: Limit is valid for three years
subject to renewal every year.

Synd Laghu Udhyami credit card

 A hassle-free credit product for meeting the credit requirement of small/medium

entrepreneurs who are existing customers with a satisfactorily conducted loan/limit of
over 2 years or maintaining the current account for last 3 years with good turnover
and swing in operations.

 Persons/Units eligible for assistance.

 Small Business Units.

 Retail, Small and medium traders.

 Artisans, Tiny Sectors.

 Small scale industrial units.

 Professional and Self Employed persons.

 Maximum eligible limit is Rs. 10 lakhs.

 A simple stock declaration on quarterly basis only need to be submitted.

 Limit is valid for 3 years subject to satisfactory conduct of the account.

Synd Swarozgar credit card

The Bank has introduced Synd Swarozgar Credit Card (SSCC) Scheme for the benefit
of small borrowers. The SSCC takes care of investments and working capital requirements of
wide range of small borrowers especially in the non-farm and service sectors both in rural
and urban areas.

Salient features of the Scheme:

Limit: The maximum limit under SSCC is Rs.50, 000 per borrower as composite loan

Rate of Interest: PLR

Margin: Nil for Loans upto Rs.25, 000 and 15% to 25% for loans above Rs.25, 000

Validity: The limit is valid for five years

Insurance cover: The beneficiaries under the scheme are eligible for cover under Group
Insurance Scheme.

Synd General credit card

Credit cards are now being extensively used by individuals to make purchases of
goods & services on credit and also for cash withdrawals. In rural areas, with limited Point-
of-Sale and limited ATM facilities, introduction of a similar product may not be feasible
although there has been a demand for such a product.

Eligibility:
 The applicants should be credit worthy customers of rural and semi-urban branches of
the bank and having definite source of income

 The applicants should be permanent residents of the place and produce proof of
address such as copy of ration card, driving license, PAN No. etc.

 They should not be defaulters to any financial institution in the area and they should
hail from the service area of rural / semi-urban Branch

 Women customers who are engaged in income generating activities having

identifiable source of income may be given special preference while implementing
this scheme.

Nature of facility & Limit:

 This is a facility in the nature of overdraft or cash credit designed for meeting general
credit needs of customers of small means without insistence on purpose or end use of
the credit.

Margin & Security:

 No margin or security will be insisted. However, borrowers may be encouraged to
open Pigmy / CD accounts subject to availability of adequate income

 A creditworthy person shall join the transaction as surety when the limit exceeds
Rs.10000. In respect of women beneficiaries, there is no need to obtain surety

The rate of interest

 PLR

Issue of Credit Card

  Under the scheme, the beneficiaries will be issued credit card (in the form of
passbook) incorporating name, address, employment details if any, borrowing limit,
validity of the card etc. The borrower would be required to produce the card whenever
he operates the account. Withdrawal in the account will be through withdrawal slips
accompanied by SGCC passbook.

Review

 The account will be reviewed at the end of one year to satisfy that the conduct of the
account is satisfactory with regard to regular servicing of interest and regularity of
other liabilities with the Bank, if any, and that the income derived by the borrower is
sufficient to service the debt. If these three conditions are complied, the account will
be allowed to be operated in the following year after obtaining balance
confirmatories.

Prime minister’s employment generation programme

The objective of the programme is to generate employment opportunities in rural as

well as urban areas through setting up of new self-employment ventures/projects/micro
enterprises. The programme was launched on 15th August 2008 to empower the first
generation entrepreneurs to set up micro enterprises.

The Scheme is formulated by merging Prime Minister’s Rojgar Yojana (PMRY) and
Rural Employment Generation Programme (REGP). The details of the scheme are furnished
below:
Eligibility:
 Individual above 18 years of age setting up new projects

 Institutions registered under Societies Registration Act, Specified institutions,

Societies and Charitable Trusts

 There is no ceiling on income

 Existing units which have already availed subsidy under any other scheme are not
eligible

Project Cost:
 The maximum cost of the project admissible is Rs 25 lakhs under the manufacturing
sector and Rs. 10 lakhs under business/service sector.
Margin:
 The margin money contribution @ 10% of the project cost for General category
borrowers and @ 5 % of the project cost for Special category borrowers

Subsidy
 General Category :The eligible subsidy is @ 15 % of project cost in urban area and @
25% of the project cost in rural area

 Special Category : The eligible subsidy is @ 25 % of the project cost in urban area
and 35% of the project cost in rural area

Security
 No collateral security and third party guarantee are insisted. Assets created out of the
bank loan should be hypothecated to Bank

Nodal Agency
 The Khadi and Village Industries Commission (KVIC) is the nodal agency at the
national level The scheme will be implemented through KVIC and KVIB in rural
areas and through DICs in both rural and urban areas

Training
 Training for a period of 2 weeks is mandatory for all the beneficiaries. Bank’s
Training Institutes will provide the required training free of cost to the selected
beneficiary. On receipt of EDP training completion certificate, Branch will release
loan as per the terms of the scheme.
 Chapter-6
E-banking in syndicate bank
 E-BANKING IN SYNDICATE BANK –

In syndicate bank e-banking should be mixing of the four things , such as

A. Syndicate e-banking

B. Delivery channels

C. Syndicate global cards

D. E-payment

B. Syndicate e-banking –

Syndicate Bank has always recognized that Information Technology is an essential part of
Banking. The Bank has been in the forefront amongst Public Sector Banks in deploying the
latest available technology, in a way that technology acts as an enabler in the development of
business and ensures that customers are benefited and delighted.

Core Banking Solution (Syndicate e-banking)

 The Bank is the first among the Public Sector Banks to implement Core Banking
Solution (CBS), way back in 2001. During the financial year 2007-2008, CBS was
further consolidated and the overall CBS network of the Bank increased to 1829
branches/offices spread across 1033 centre’s and accounted for about 96% of the
Bank's business.

 As on 17.03.2009, all our Branches are in the CBS fold.

Our Premium Products in Savings Bank A/cs under e-Banking

 Premium Savings Account

 Special Premium Savings Account

PREMIUM SAVINGS ACCOUNT -

The Bank has introduced a Premium Savings Account at e-banking branches that
combines full safety, easy liquidity and highest possible interest. The salient features of the
scheme are as under
  A unique 'Sweep out, Sweep in' facility offered at our e-banking branches ensures that
while the customer's money earns solid interest as a fixed deposit, it turns liquid to
meet his urgent needs. That too at no extra cost.

 Average monthly balance of Rs.10000/-to be maintained in the Premium Savings

account.

 Balance available in the account in excess of Rs.10000/-on any day gets automatically
swept out into a fixed deposit for 180 days in units of Rs.1000/-.

 No penalty is charged for breaking the fixed deposit prematurely. However, the
amount swept out earns interest for the period run at the applicable rate.

 Even while breaking the fixed deposit, only the most recently converted fixed deposit
is first broken to minimize interest loss to the customer.

 Only those amounts swept out of your Premium Savings Account are eligible for
sweep in and not other fixed deposits.

SPECIAL PREMIUM SAVINGS ACCOUNT-

The Bank has introduced a Special Premium Savings Account at e-banking branches
that combines full safety, easy liquidity and highest possible interest. The salient features of
the scheme are as under

 A unique 'Sweep out, Sweep in' facility offered at our e-banking branches ensures that
while the customer's money earns solid interest as a fixed deposit, it turns liquid to
meet his urgent needs. That too at no extra cost.

 Average monthly balance of Rs.20000/-to be maintained in the Special Premium

Savings Account.

 Balance available in the account in excess of Rs.20000/-on any day gets automatically
swept out into a fixed deposit for 1 year 1 day in units of Rs.1000/-.

 In the event of shortfall in SB for meeting your clearing cheques or for other urgent
needs, the fixed deposit is swept back into the Special Premium Savings Account in
required number of units of Rs. 1000/- free of cost.

 No penalty is charged for breaking the fixed deposit prematurely. However, the
amount swept out earns interest for the period run at the applicable rate.

 Even while breaking the fixed deposit, only the most recently converted fixed deposit
is first broken to minimize interest loss to the customer.
  Only those amounts swept out of your Special Premium Savings Account are eligible
for sweep in and not other fixed deposits.

Our Special Products in Current /SB A/cs under e-Banking

We offer Multi-City Cheque facility together with a package of concessional facilities in our
Multi-City Current and SB Schemes. For details click on the links below

 SyndSilver Current Account

 SyndPlatinum Current Account

 Synd Flexi Current Account
 Multi-City SB Account

Multi-City Current Account

The following are the 2 variants of Multi-City Current Accounts:

Monthly Minimum Average Balance
S.No. Name
(MAB) Rs.
I Synd Silver Current Account 25,000
II Synd Platinum Current Account 2,00,000

 Multicity Payable at par cheques

 Cash withdrawal by self at non-home branches free (limits apply)

 No upper limit for payment of crossed third party cheques upcountry

 Cash deposited upcountry by the customer for credit of his home-branch account
remitted free of charge

 Collection of outstation cheques free (limits apply for Synd Silver Current Account)

Online remittances free for Synd Platinum Current Account & at concessional rates for
Synd Silver Current Account.

SyndFlexi current account –

It is one of the special products in current Syndicate e-banking . The feature of the
current account should be given in the below manner.

“SyndFlexi Current Account” combines the liquidity of Current Account with the
earning capacity of Term Deposits. The account is available at CBS Branches and provides
for Sweep-out Sweep-in Facility.
 Amounts in excess of the prescribed threshold amount of Rs. 1.00 lakh is
automatically swept out to Term Deposit and funds from the Term Deposit is Swept in to the
Flexi Current Account as and when there is a shortfall in the balance in the account.

Multi-City SB Account- A another special products in syndicate current account is multi-

citySB account.

This facility is to be offered to high net-worth Savings Bank customers of the Bank.

 The minimum average balance (MAB) to be maintained in the account is Rs.25,

000/-.

 All third party cheques shall be crossed ‘Account Payee’ and will be payable at par at
all our CBS branch centre’s.

 No upper limit for transaction through A/C Payee cheques.

 Self-cheques can be paid in cash up to an aggregate limit of Rs.50,000/- in a day at all

the CBS branches other than the home branch.

The cheque books issued to the Multi city account holders will be personalized
cheque books.

C. DELIVERY CHANNELS-

The delivery channels are –

a) ATMs

b) Syndsms banking

c) Internet banking

d) Tele banking

e) Multi-city banking

f) Syndbill pay services

 ATMs –

 The Bank has rapidly expanded the ATM network considering the fact that ATMs
have become the most acceptable delivery channels. As at the end of January 2009 the
Bank has got a network of 1051 ATMs spread across 543 centres.
 The Bank is a member of VISA International, which extends the usage reach of our
ATM/Debit Card holders to over 28700 ATMs in the country and over 1.2 million
ATMs across the globe. Our cardholders can also transact at Member Establishments
(MEs) numbering over 3.5 lakh in the country and over 2.84 crores across the globe.

 The Bank is also a founder member of the "Cash Tree" consortium with 5 other banks
since 2003 formed with a view to extend the reach of the cardholders and to enhance
customer convenience.

 Presently, 13 Banks are members of the network thereby increasing the total number
of ATMs under the "Cash Tree" network to over 4300. The transaction fee of Rs.10/-
charged by the consortium is the lowest in the industry.

ATMs offer the convenience of withdrawing /depositing cash and performing other
banking transactions without having to visit the branch during pre-fixed business
hours. These machines work round the clock, are safe to transact in a isolated and
secure environment.

The services offered through these ATMs are:

 Cash Withdrawal and Deposits

 Balance Enquiry

 Mini statement (last 10 transactions)

 Stop Payment of cheque

 Funds transfer

 Cheque related services including cheque book request

 PIN Change

a) Syndsms banking -

Bank has launched Syndsms banking facility for CBS branch customers.

This facility is introduced under CBS environment. Under SyndSMSBanking, we have

introduced the following enhanced facilities:
 1. SMS Enquiry Facility (SMS PULL Services)
2. SMS Alert Facility (SMS PUSH Services)

SMS enquiry facility is on-line and real time basis available 24/7. Whereas, SMS Alert
facility will not be real time and you would receive the same within 30 minutes from the time
of transaction in the account for which alert to be sent.

Requirements for SyndSMSBanking.

 Mobile phone which supports SMS (GSM or CDMA)

 Registration of Mobile numbers with our Branches by submitting an application to the

Branch.

SECURITY FEATURES AND SECRECY

1. Mobile number should have been registered both for SMS Enquiry and Alert
facilities with the Bank.

2. While processing the SMS enquiries, system will check whether the request is
from the same mobile number which has been registered for your Customer ID. If
requests received from any other mobile numbers, system will not respond to such
requests.

3. System will validate account numbers against the customer ID while processing
SMS Enquiries.

4. System will validate cheque numbers against account number while processing
SMS Enquiries.

5. There is no separate User_id or password while processing SMS Requests.

6. The messages exchanged between Bank and SMS Carriers is traveling in

encrypted format and in a secured communication channel i.e. Secured Socket
layer (SSL).

Facilities available in SMS Enquiry.

Following facilities available under SMS Enquiry.

• Registration for SMS Banking

• Balance Enquiry in CASA
• Change of primary account
• Term Deposit details enquiry
• Issued Cheque status
• Cheque stop request
• View of last 5 transactions
• De-register for SMS Banking

SMS ALERT FACILITY

What are facilities available in SMS Alerts Facility and How to use it?

System will automatically send an alert message to your mobile through SMS on following
events in your accounts in case you have registered for alerts.

 When a Debit/Credit Transaction amount is above Rs. 10000/- or the amount specified by
you whichever is higher in any of your operative accounts which are registered for alerts
facility.
 Monthly alert on Present Balance/liability in any of your operative accounts which are
registered for alerts facility.
 Overdraft alert when any of your operative accounts goes to debit balance or exceeds the
limit.
How to enroll for SMS Alerts facility?

 Collect SMS Banking application from your home branch, fill in and submit the same.

 In the Application, you have to specifically request for SMS Alert Facility.

 Details of Mobile numbers (With country code) to which alerts are to be sent is
required to be invariably mentioned in the application very clearly.

Terms & conditions governing SyndSMSBanking

1. The SMS Banking USER shall be solely responsible for all the transactions and
consequences arising out of the messages emanating from the registered mobile phone
instrument. Bank will not assume any responsibility for unauthorized messages sent
by any other person without authority.
2. All the transactions arising out of the use of SMS Banking in relation to a joint
account shall be binding on all joint account holders. The USER shall take all
necessary precautions to prevent unauthorized and illegal use of SyndSMSBanking
and unauthorized access to the Accounts provided by SMS Banking.
3. The Bank shall take reasonable care to, ensure the security of and to prevent
unauthorized access to the SMS Banking. The SMS Banking USER shall ensure that
SyndSMSBanking service or any related services is not used for any purpose which is
 illegal, improper or any other purpose apart from the specified or requested services
under the SyndSMSBanking which is not authorized under these Terms.
5. The Bank has the absolute discretion to amend or supplement any of the terms at any
time without notice. Changed terms and conditions shall be effective immediately on
being practiced and the SMS Banking USER agrees and shall be deemed to have
accepted the changed terms and conditions.
6. The SMS Banking USER may request for termination of the SyndSMSBanking
service any time by giving a written notice of at least 15 WORKING DAYS in
advance to the Bank. The SMS Banking USER shall remain responsible for any
transactions made in his accounts(s) through SyndSMSBanking till the said service is
cancelled by the Bank.
7. The Bank shall make all reasonable efforts to ensure that the SMS Banking USER
information is kept confident. The bank however shall not be responsible for any
leakage of confidential user information in any manner for reasons beyond its control.
12. For sending SMS messages under SMS Enquiry, you will be charged by your Mobile
operator applicable SMS charges.

By registering for SyndSMSBanking facility, the customer agrees to have understood and
abide by the Terms and Conditions governing SyndSMSBanking.

c) Internet banking-

Internet Banking, which is emerging as an all-pervasive channel, is gaining

acceptance amongst our clientele. The number of users has increased considerably.

In addition to the basic services of account details, statement of accounts etc., the
following services are provided to enhance customer service

o e-ticketing for Railway ticket reservation

o Utility Bill payment through Internet banking

o Payment of Direct & Indirect Taxes - for both individuals and Corporate.

d)Tele banking –

Tele-Banking Service facility

Consequent to introduction of various technology driven delivery channels

viz. SMS banking and Internet banking, most of our clients have switched over to
these services which have got better features than that available in Tele-banking
services.

Due to the above, the usage of the tele-banking has reached to abysmally
low levels. Hence, we propose to discontinue the Tele banking services w.e.f. 1st
April 2009.

All our customers are requested to take a note of the above. They are
requested to get themselves registered for alternate delivery channels viz. Syndsms
Banking / Internet Banking, if they have not done so till date.

Features of the Tele-Banking Scheme : (being discontinued from 01.04.2009)

Undertaking a host of banking related services including financial

transactions from the convenience of your chosen place anywhere across the GLOBE
and any time of date and night has now been made possible by introducing on-line
Telebanking services.

The system is bi-lingual and has following facilities offered;

 Automatic balance voice out for the default account.

 Balance inquiry and transaction inquiry in all

 Inquiry of all term deposit account

 Statement of account by Fax, e-mail or ordinary mail.

 Cheque book request

 Stop payment which is on-line and instantaneous

 Transfer of funds with CBS which is automatic and instantaneous

 Utility Bill Payments

 Renewal of term deposit which is automatic and instantaneous

 Voice out of last five transactions.

 Various inquiries such as term deposit rates, forex rates etc.

e)Syndbill pay services -

Syndicate Bank has introduced utility bill payment facility through
Internet banking. Utility bill payment facility through Internet banking is available for
customers of core banking branches in Bangalore, Mumbai and New Delhi cities only
for the present.

This facility is provided through a tie-up with M/s IndiaIdes.com

Ltd (BILLDESK). The facility comes to you absolutely free of service charges.
You need to become user for Internet banking facility provided by the bank for
availing the services of Bill payment.
 Chapter-7
Data Analysis
 Analysis part
Table-1
(a)
Dealing with E-Banking services

STATUS NO OF RESPONDENTS(IN
%)
YES 90
NO 10
Source: Primary data

Inference: It is observed from the above table that 90% of the respondents are dealing with
E-Banking services but only 10% are not aware about the E-Banking services.
(b) Customers Dealing with Nationalized Banks and Private Banks

Banks No of Respondents
(in %)
Nationalized 60
Banks
Private Banks 40

Source: Primary data

Inference:

From this above table it is observed that 60% of the respondents are dealing with nationalized
banks e-banking and 40%are dealing with private banks e-banking.
Table-2
Responses Regarding Preference for E-Banking

No of respondents(in Over all

E-Banking %) ranks
ATM Card 44 1
sms banking 28 2
Internet Banking 4 6
Tele Banking 7 5
multicity banking 8 4
synd bill pay
services 9 3

Source: Primary data

Inference:

It is observed from the above pie chart graph that most of the respondents are preferred
ATMs to other channels. ATMs got first rank in preference of e-banking , because by the help
of ATMs people should get more benefit. They can easily withdrawal the amount, no tension
to carry the net cash with them.
Table-3
Purpose of the selection of E-Banking

Purpose No of Overall
Respondents(in%) Ranks
Convenient accessibility of E- 31 2
Banking
Easy availability of Ebanking 19 3
No.of facilities provied by E-B 16 4
anking
Less risk of usage 34 1

Source: Primary data

Inference:

It is observed from the above table that among these four purposes the respondents
feel that convenient accessibility of e-banking and less risk for usage are the main
purposes affecting their e-banking selection decision.
Table-4
Frequency of customers monthly physical visits in the banks in addition to access e-banking

No of bank No of respondents(in
visits %)
occasionally
once 35
2 to 5 times 50
6 to 10 times 8
11 to 15 times 6
More than 15
times 1

Source: Primary data

Inference

From the above graph we can infer that 50% of the respondents visit the banks 2 to 5 times in a
month and 35% visit the banks occasionally once. Only 15% respondents visit the banks more than 5
times. We can see that a majority of the respondents visit banks less than 5 times within a month
even while accessing e-banking.
Table-5
Hidden cost levied by e-banking services

No of Respondents
Status (in %)
Yes 48
No 52

Source: Primary data

Inference-

It can infer from the above table that 48% of the respondents are aware about the hidden cost
but 52% are ignorant due to the inadequate information provided by the banks.
Table-6
purpose of customers physical visits in the banks in addition to accessing e-banking

No of respondents(in Overall
purpose %) Ranks
Mega size deposits 26 2
Mega size
withdrawals 42 1
Getting
loans/advances 8 4
Making complaints 5 5
To access lockers 15 3
Any other purpose 4 6

Source: Primary data

Inference
In the above table it can infer that 42% respondents visit the banks for mega-size withdrawals and
26% for mega-size deposits. Because by the help of E-Banking people can easily saving the money in
the Bank and it takes only few minutes.

Table-7
Response Regarding Problems Faced by the Customers While Using E-Banking

Problems Responses of the Respondents

(in%)
Inadequate 31
knowledge
Poor network 20
Lack of 24
infrastructure
Time consuming 16
No problem at all 9
Source: Primary data

Inference:

It can infer from the above graph that inadequate knowledge and lack of infrastructure about the e-
banking are the most dominant problems faced by a majority of the respondents; poor network is
also major problems faced by the respondents
Table-8

Recent Experience of the Respondents Regarding e-banking services

Banks Good(in%) Very good(in No idea(in

%) %)
Nationalized 40 50 10
Bank
pvt Banks 25 35 40
Source: Primary data

Inference

From the above table it can infer that 50% of the respondents told that nationalized banks are very
good and 40% told that it is good but only 35% of the respondents are told that private banks are
very good and 25% are aware about good.
Table-9
Responses Regarding Suggestion to Make the Customer Aware of Future E-Banking Services

Responses of the Respondents (in

Suggestion %)
Challenging 29
Complexity 25
Demo at the
Counter 26
More
advertisement 20
Source: Primary data

Inference:

From the above table it can observed that challenging and demo at the counter are the most
preferred solution to make them aware of e-banking. We can conclude that the the bank with demo
at the counters and advertisements or information should make more and more customer aware of
the e-banking services.
Table-10

Factors for discouraging in e-banking services

No of Respondents (in
Factors %)
Security 32
Lack of face to face
interaction 28
All the above 50

Inference

In the above table it can observed that both of the factors that is security and lack of face to
face interaction are discouraging in e-banking services. Because the security is 32%% and
lack of face to face interaction is 28% and both the problem are 50%.
 Chapter-8
Findings and Recommendation
 FINDINGS

On the basis of the findings it is observed that,

 90% of the respondents are dealing with e-banking services among this 60% are
dealing with nationalized bank e-bank services.

 ATMs got first rank and credit cards got second rank in preference of e-banking
services.

 Convenient accessibility and less risk for usage are the main purpose affecting e-
banking services.

 Inadequate knowledge about e-banking services is the most important problem faced
by the respondents and demo and advertisement are the most preferred solutions to
make the customers aware of e-banking services.
 RECOMMENDATION

On the basis of the findings , I offer some more suggestion to make e-banking
services more effectives , which will further accelerate the process of transformation
in banks.

The bank should make the ATMs and other e-banking accessible , convenient
and secure from information loss by increasing the number of ATMs.

ATMs, credit cards and online banking are preferred the most by the customers
due to time , cost utilities and efficient services. So the bank should make the effort by
arranging demo-fares or provide information to the customers at the counters to make the e-
banking popular and easier to understand.
 Chapter-9
Conclusion and Bibliography
 Conclusion
It is the evident from the above discussion that a majority of the customers of e-banks
are highly satisfied from nationalized banks e-banking services.

Electronic banking system is a new innovation in banking system that helps the people
in different way. In today’s people can know easily all about the banking industry and also all
about the different type of industry.

People can easily send a message to anywhere by a less time and by

the help of ATM machine people can easily draw their amount. In today’s life time is much
more important than money, so the electronic system is very much important and also
popular.

On the basis of findings, it suggest that the details regarding operating system and facilities
provided by e-banking should be highlighted to the customers irrespective of their
occupation. This will create a better awareness regarding the e-banking services.

In Syndicate bank the bank provides different type of facilities for the
benefited of the people. The bank also collects more amount of money by this way. The bank
can easily mention all about its product, loan and services that should be easily understood by
the people.
 Bibliography

BOOK

Electronic Banking : The ultimate guide to on line banking

Marketing Management(Philip Kotler)

Websites

www.syndicatebank.co.in

www.answers.com

www.google.com
Chapter-10
Annexure
 Annexure

Name:

Age (a) 10-20[] (b)20-40[] (c)40-60[] (d)60 and above[]

Status: Married/Unmarried Gender: Male/Female

Profession:

Q.1. Do you use with e-banking services if yes then answer the question.

(i)Nationalized Bank [ ] (ii) Private Bank [ ]

Q.2.Which of the following e-banking do you prefer?

(i)ATM card [ ] (ii) Syndsms Banking [ ] (iii)Internet Banking[ ] (iv)Tele Banking[ ]

(v)Multi-city Banking [ ] (vi) Syndbill pay services [ ]

Q.3.For which purpose you select e-banking?

(i) Convenient accessibility of e-banking [ ]

(ii) Easy availability of e-banking [ ]

(iii)Number of facilities provided by e-banking [ ]

(iv)Less risk of usage [ ]

Q.4. How many times do you visit a bank physically for bank transaction in a month in
addition to accessing e-banking?

(i)Occasionally once [ ] (ii) 2 to 5 times [ ] (iii)6 to 10 times [ ] (iv)11 to 15 time[ ]

(v)More than 15 times [ ]

Q.5.Do you aware of the hidden cost levied by e-bank services provided to you?

Ans- ……………………………………………………………………
Q.6.For what purpose do you visit your bank physically?

(i)For mega-size deposits [ ] (ii) For getting loans/advances [ ] (iii)For mega-size withdrawals
[ ] (iv)For making complaints [ ] (v)To access lockers [ ] (vi)Any other purpose [ ]

Q.7.What type of problems do you generally face?

(i)Inadequate knowledge [ ] (ii)Poor network [ ] (iii) Lack of infrastructure [ ] (iv)Time

consuming [ ] (v)No problems at all [ ]

Q.8.What is your recent experience of taking e-banking services ?

(i)Nationalized Banks……………………………

(ii) Private Banks………………………………..

Q.9.What is your suggestion in view of future e-banking services?

Ans-…………………………………….

Q.10.Which of the following factor is discouraging in e-banking services?

(i) Security [ ]

(ii) Lack of face to face interaction [ ]

(iii) All the above [ ]