COVID MEASURES:

I. MSME / Corporate
A) Trade Finance
 Self-declaration from exporters / importers wherever possible
 Pre-shipment Credit – Branch Head to grant Adhoc/TOD equivalent to
interest debited to the customer from 01.03.2020 to 31.05.2020.
 Post Shipment Credit – Upfront interest collection is waived.
 Invocation of BG / Devolving of LC:
i. Customer agreeable to pay devolvement/invocation under Standby
Letter of Credit – Branch to make payment.
ii. Customer requests for extension duly giving seller’s consent – Same
intimated to seller’s Bank/Negotiating Bank. On their approval, extend
the time.
iii. Customer request to make payment & recover from him later before
June-20
 Timeline for submission of underlying documents extended to 31.05.2020

B) Credit Guarantee Scheme for Subordinate Debt to MSME

 For MSME standard as on 31.03.2018 SA or NPA in subsequent FY 18-19
and 19-20.
 Proprietorship/Partnership/Private/Registered company.
 Stressed (SMA2/NPA) as on 30.04.2020
 Fraud/Wilful defaulter – no eligible
 Personal Loan to the extent of 15% of his share (equity+debt) or Rs
75.00 lakh whichever is lower as per last audited balance sheet.
 Tenor – 10 yrs (Moratorium – 7 yrs)
 CGTMSE – 90% , 10% by the entity in terms of collaterals
 Guarantee fee – 1.50% to be borne by the borrower.
 

C) Baroda Covid Emergency Credit Line (BCECL 1.0)

 Existing MSME/Corporate borrowers
 To meet temporary liquidity mismatch
 In terms of Short Term / Demand Loan
 Limit – 10% of Fund Based Working Capital Limit max – Rs 200 cr
 This is in addition to existing standby line of credit
 Tenor – 24 M (6M moratorium) – 15% of the loan amount in first six EMT
and the rest in next 12 EMI.
 All standard & SMA0 accounts only as on 26.03.2020
 80% of the loan to be backed by stocks & receivables & 20% clean
 10% additional DLP across all authorities

D) Baroda Covid Emergency Credit Line (BCECL 2.0)

 BOB, PNB, Canara, SBI and UBI came up with common guidelines.
 Existing MSME/Corporate borrowers/Food & Agro
 To meet temporary liquidity mismatch
 In terms of Short Term / Demand Loan
 All standard, SMA0 and SMA1 accounts only as on 01.03.2020
  Limit – 10% of Fund Based Working Capital Limit max – Rs 200 cr
 Extension of charges on Primary & collateral security
 Security charge creation in 60 days.
 Tenor – 24 M (6M moratorium)
 10% additional DLP across all authorities

E) BOB Guaranteed Emergency Credit Line Scheme (BGECL 1.0).

 Existing MSME units including Mudra/PMEGP etc
 Partnership firms/Proprietorship/LLP/Company/Trust/PMMY
 GST registered
 Have max o/s of Rs 25.00 cr as on 29.02.2020 and Turnover upto Rs 100 cr
 Only Fund based limit o/s from entire banking industry is considered.
 Off balance sheet / LC/BG not considered.
 To avail at one Bank – NOC from other Bank required.
 To avail proportionate to credit availed from our Bank – No ONOC required.
 Limit – 20% of o/s balance as on 29.02.2020
 Tenor – 4 yrs (1 yr moratorium)
 100% NCGTC coverage
 PMEGP/MUDRA continue to classify in the same scheme after availing the
loan
 It is a pre-approved loan facility with ‘opt-out’ option.
 
F) BOB Guaranteed Emergency Credit Line Scheme (BGECL 2.0).
 
 Additional Working capital TL / NFB to meet liquidity mismatch due to
COVID-19.
 Existing borrowers as on 29.02.2020
 Opt-in Basis
 26 MSME Sectors as per Kamath Committee
 Total Credit o/s >50 cr to 500 cr as on 29.02.2020
 A/c should be < 30 days past due as on 29.02.2020
 Credit card overdrawing / SB dr balance should not be considered
 GST registered entity
 Limit – 20% of the Fund based limit o/s as on 29.02.20
 Sanction upto 31.03.21 and disbursement by 30.06.2021
 Tenor – 5 yrs (1 yr moratorium)
 100% coverage by NCGTC
 
 
 
 
G. Interest subvention scheme to Mudra – Shishu:
2% interest subvention for all Standard Accounts (as on 31.03.2020) for 12
months.
If accounts becomes NPA in subsequent months, only period for which the account
is in Standard status, ISS is given.
H. Revision in LTV Ratio for Gold Loans other than Agri Purpose
LTV ratio revised to 90% from 75%.

I. Special Scheme for BKCC account holders

 Existing accounts eligible for prompt repayment incentive.
 10% of the limit with Min- Rs 10,000/- to Max –Rs 50,000/-
 Tenor - 3 yr (Half yearly instalment)
J. Additional Assurance to SHGs
 Existing SHGs with satisfactory track record.
 Min – Rs 30000/- Max – Rs 10.00 lakh (30% of Existing limit which shall not
exceed Rs 1.00 lakh per member)
 Security – Nil
 Tenor – 24 M (6 M Moratorium)
K. Baroda Personal Loan Covid-19 :
 Existing HL/LAP/Auto loan customers with min 6M connection, 3M EMI paid.
 10% of HL/LAP or 20% of Auto with min-25k and max-5lakh.
 Repayment – coterminous with link loan or 60M

RBI Measures to COVID-19

Monetary Measures:
1. Repo Rate – The repo rate was cut by 75 bps, or 0.75% to 4.4. The Repo
Rate was earlier 5.15.
2. Reverse Repo –Reverse Repo rate by 90 bps, to 4%. (Liquidity infusion
expected – 3 lakh cr)
3. CRR –reduced by 100 bps, or 1%, to 3% (Inject liquidity of Rs. 1.37 lakh cr).
4. Targeted LTRO – The RBI will also undertake Long Term Repo Operations
(LTRO); allowing further liquidity with the banks. The banks however are
specified that this liquidity will be deployed in in commercial papers,
investment grade corporate bonds and non-convertible debentures.
5. Deferment of NSFR- The Net Stable Funding Ratio (NSFR), which reduces
funding risk by requiring banks to fund their activities with sufficiently stable
sources of funding was postponed to October 1, 2020. The NSFR was earlier
supposed to be implemented by April 1, 2020.
6. MSF – Marginal Standing Facility (MSF) has also been increased to 3% of
SLR, available till June 30, 2020. “This measure should provide comfort to
the banking system by allowing it to avail an additional Rs 1.37 lakh cr of
liquidity under the LAF window in times of stress at the reduced.
Regulatory Measures:
7. Loan Moratorium 6 Months moratorium on all loans (EMI & Interest) from
Banks/FI/ NBFCs including Housing Finance and Microfinance.
8. Ease of Working Capital financing – Lenders were allowed lending to
recalculate drawing power by reducing margins and/or by reassessing the
working capital cycle for the borrowers. The RBI also specified that such a
move would not result in asset classification downgrade.
9. Provisioning: In respect of accounts in default but standard, additional 10%
provision (5% by March 20 and 5% by June-20).
 CERSAI (Central Registry of Securitization, Asset Reconstruction and
Security Interest of India – 2011)

 Creation, Modification and satisfaction of

 Mortgages of immovable property
 Hypothecation of movable assets
 Intangible assets
 Exceptions: Vehicles, Standing crops and Livestock
 Creditors other than secured creditors need to file with CERSAI for
charge creation.
 Attachment orders by Revenue authorities / Court/Tribunals need to
file with CERSAI
 30 day time for filing the transactions, else penalty provisions
 After CERSAI registration, secured creditors dues are cleared first over
Govt dues.
 Portal: Primary Admin (Corporate Office), Secondary admin (RO) and
multi functional users (Maker-Checker and branches)
 Digital Signature is must
 E-Lock supersigner need to be installed in Checker PC.
 Asset ID/Security Interest ID (12 digit no starting with 4000) is
generated for each entry.
 Satisfaction of charges after closure of the credits against the property.

What is Interest equalisation Scheme (IES):

Scheme was introduced with effect from 1st April 2015.
It is interest subvention scheme for MSME Exporters (pre and post shipment export
credit)
Rebate upto 5% is given subsequently based on eligibility and norms. Large
manufacturer and Merchant exporters remains at 3%.
Banks provide this benefit to the eligible exporters and claim a reimbursement of same
from RBI based on certification by an external auditor. Eligible exporter has to submit a
certification by external auditor to claim this benefit.
Who can avail:
MSME Manufacturer exporters in the identified 416 four digit tariff line and Merchant
who fall under 416 tariff line.
MSME has to get Udyami Registration Certificate from MSME Dept and the line of
activity should be same mentioned in it.
Existing MSME units also need to be get Udyami Registration Certificate
 KUSUM (Kisan Urja Suraksha evam Uthaan Mahabhiyan)

A Small renewable energy project Ground mount, grid Ground mount, grid
connected solar energy units connected solar energy
– 10000 MW target plants of 500 kW to 2
MW
B Installation of standalone solar Target 2 million new units Capacity upto 7.50 HP
powered agri pumps
C Solarization of existing grid Target 1.50 million -
connected pumps

Project cost Loan Subsidy Tenor

(Centre:State)
A 3.50cr/MW Max-4.90 cr Nil -
(Max-7 cr)
B 3.25 0.97 lakh 60% 10 yrs
lakh/pump
C 4.50 1.35 lakh 60% 10yrs
lakh/pump

Note exchange policy

 Issuing good quality notes/coins on demand

 Exchange of soiled /mutilated/defective notes (Small Finance / Payment Bank – No)
 Accepting coins & notes for exchange /transaction
 All branches
 Wide publicity
 Soiled note – Due to wear & tear/two pieces with all features intact
 Mutilated – Many pieces, portion is missing
 Extremely brittle/burnt/charred/stuck up notes – Not acceptable

Soiled:

 Upto Rs 5000 – exchanged over the counter

 Above Rs 5000 – Receive against receipt, may credit later & may levy charges

Mutilated/Imperfect


Upto Rs 5000 – Adjudicate At branches (stamp it – PAY/PAID/REJECT)

Above Rs 5000 /- - Customer to send through Reg AD to Currency Chest along with
account/IFSC details or go in person.
 Notes with Slogans/scribbling/stains – should not be re-issued.
 Deliberately cut notes with missing portion should not be accepted.
Centralized Positive Pay System (CPPS)

 From 01.01.2021
 Customers to re-confirm the key details of issued cheques under CTS-10
 Channels : Mobile Banking/Internet Banking/Branch/SMS to VMN -8422009988
 NPCI will provide 5 validation flags of match /mismatch cases (except payee name & date of
cheque)
 Signature tallying & Balance only to be tallied at CBO
 It is not mandatory as of now
 Mandatory fields : A/c number, cheque number, payee name, date, Amt, Transaction code

OCRMS (Off-Site Compliance Reporting & Monitoring System)

 Monthly checks
 Data driven from Big data Lake on KYC & other errors.
 URL is provided to all (BR/RO/BCC)
 Earlier – manually error data used to be pushed for rectification.
 Now alerts on real time basis-HRNes User ID and password

Prime Minister’s Employment Generation Programme

 Objectives: Generation of sustainable and continuous self-employment
opportunities in urban and rural areas of the country
 Eligibility
o Individuals with age of 18 years or more
o Passing standard VIII is required for a project above Rs 5 lakh in the
service sector and above Rs 10 lakh in the manufacturing sector
o Institutions registered under Societies Registration Act- 1860
o Production based co-operative societies
o Self-help groups and charitable trust
 Implementing Agency : KVIC/KVIB/DIC( 30:30:40)
 There is no income ceiling for setting up projects
 Assistance for new units only
 Maximum project cost Rs 10 lakh in the service sector and Rs 25 lakh in the
manufacturing sector is this limit.
 Negative list of activities
 Businesses / Industries connected with processing/productions/sale of meat or
intoxicant items like pan/beedi/cigarette etc.
 Businesses/ Industries linked with sericulture, cultivation, floriculture, horticulture.
 Manufacture of containers of recycled plastic/polythene carry bags of less than
20 microns
 Processing of pashmina wool and other products which involves hand spinning
and hand weaving which comes under the purview of Khadi Certification Rule.
 Rural transport (except houseboat, shikara, tourist boat in Andaman & Nicobar
Islands and in Jammu & Kashmir, auto rickshaw and cycle rickshaw.)
 CNG auto rickshaw will be permitted only in Andaman & Nicobar Islands and
North Eastern Region of the country with the prior approval of Chief Secretary of
the State on merit.
Margin and Subsidy
Beneficiary’s own
Categories of beneficiaries under contribution (of project Rate of Subsidy
PMEGP cost)  

Urban Rural

General Category 10% 15% 25%

Special Category (including 5% 25% 35%

SC/ST/OBC /Minorities/ Women, Ex-
Servicemen, Physically handicapped,
NER, Hill, and Border areas etc)

 Security: No collateral security nor any third party guarantee is insisted here. Any
assets created from the bank loan should be hypothecated to Bank.
 Training: A 2 weeks EDP training period is mandatory for all the
beneficiaries before release of loans.
 Procedure – Online application/ DLTFC (District Level Task Force Committee) –
Scoring Model for selecting beneficiaries (Min 50 of 100 for loans upto Rs 10 lakh
and 60 for above Rs 10 lakh

Pradhan Mantri Matsya Sampada Yojana (PMMSY)

 Umbrella scheme with combination of two components – Central Sector (CS) and Centrally
Sponsored Scheme (CSS)
 Eligibility : Beneficiaries oriented (CSS) and Non-beneficiaries oriented (CS)
 Purpose : Improve production, productivity, post harvest management
 Assistance under CSS for beneficiary oriented (Stat/Central together) – 40% for Gen, 60% for
SC/ST/Women.
 CGTMSE coverage for exposure upto Rs 2.00 cr
 CSS components:
 Development of inland fisheries and aquaculture
 Development of Marine fisheries
 Devt of fisheries in NE/Hilly areas
 Ornamental & recreational fisheries
 Technology Infusion and adoption
 Post Harvest & Col chain infrastructure
 Market & Market Infrastructure
 Aquatic health management
Agri Infrastructure Fund
 Post Harvest Management projects
 Community farming projects – Organic inputs production/Bio-stimulant
production/smart & precision agri
 3% interest subvention for 7 years & CGTMSE for loans upto Rs 2.00 cr
Animal Husbandry Infrastructure
 Dairy processing
 Animal feed manufacturing
 Meat processing & value addition
 3% interest subvention for 7 years & CGTMSE for loans upto Rs 2.00 cr

PSB Alliance Doorstep Banking:

 As per EASE norms, IBA mandated
 For senior citizens (>70 yrs), differently abled persons/infirm persons/visually impaired
persons
 Through universal touch points (as mandated by DFS)
 Anchor Bank – Uco Bank
 Member Banks – 18 PSBs
 Service providers – M/s Atyati Technologies & M/s Integra
 Phase – 100 centres (Atyati – 60 and Integra – 40) – we have 1582 branches in these
centres
 Services through: a) Mobile App b) Web based & c) Call Centre
 10 services are available.
 Applicants can select the required service through any of the above mode.
 Services:
 Pick up of negotiable instruments
 Request account statement
 Pick up cheque requisition slip
 Delivery of non-personalized cheque book, draft, pay order, FDR, acknowledgement
etc.
 Acceptance of 15H/15G forms
 Delivery of prepaid/Gift cards.
 Issuing Standing instructions
 Cash Deposit
 Cash withdrawal
 Services booked upto 3 pm -> delivered in 3 hours
 Services booked after 3 pm -> delivered by 1 pm next working day.
  Service Charge – Rs 75+ GST for each service (Same type of requests can be clubbed)

Internet Payment Gateway (IPG) – Paypoint

 Customized software installed at Merchant’s site which enable them to pass and track
all e-commerce transactions.
 Installed on merchant’s website/app
 Onboarding, integration, settlement and resolution centralized at our IPG
 Merchants using shopping cart plug-ins for selling their products / services through
Internet
 Mobiles having Android / iOS support to Merchant’s app.
 Has functionality to capture customer’s personal details
 Can send transaction status through email/SMS
 Comprehensive dashboard/MIS
 Enabled for Card/Netbanking/UPI/QR code/NEFT/RTGS
 Can use those who do not have their websites / payment modules.
 Variants:
 Baroda Paypoint – Education
 Baroda Paypoint – Colony world
 Baroda Paypoint – eKart
 Blockchain’s role in banking
Blockchain technology provides a way for untrusted parties to come to agreement on
the state of a database, without using a middleman. By providing a ledger that nobody
administers, a blockchain could provide specific financial services — like payments, or
securitization — without using a middleman, like a bank.
Further, blockchain allows for the use of tools like “smart contracts,” which could
potentially automate manual processes, from compliance and claims processing, to
distributing the contents of a will.
For use cases that don’t need a high degree of decentralization — but could benefit
from better coordination — blockchain’s cousin, “distributed ledger technology (DLT),”
could help corporates establish better governance and standards around data sharing
and collaboration.
With global banking currently a $134T industry, blockchain technology and DLT could
disintermediate key services that banks provide, including:

1. Payments: By establishing a decentralized ledger for payments (e.g. Bitcoin), blockchain

technology could facilitate faster payments at lower fees than banks.
2. Clearance and Settlement Systems: Distributed ledgers can reduce operational costs and
bring us closer to real-time transactions between financial institutions.
3. Fundraising: Initial Coin Offerings (ICOs) are experimenting with a new model of financing
that unbundles access to capital from traditional capital-raising services and firms.
4. Securities: By tokenizing traditional securities such as stocks, bonds, and alternative assets
— and placing them on public blockchains — blockchain technology could create more
efficient, interoperable capital markets.
5. Loans and Credit: By removing the need for gatekeepers in the loan and credit
industry, blockchain technology can make it more secure to borrow money and provide lower
interest rates.
6. Trade Finance: By replacing the cumbersome, paper-heavy bills of lading process in the
trade finance industry, blockchain technology can create more transparency, security, and
trust among trade parties globally.

Cloud Computing

The banking industry is home to a large volume of consumer data and is always eager to provide
the best services to its customers. In such a scenario, the cloud computing technology serves as a
transformative digital solution which offers unparalleled levels of security, agility, and
scalability to the banking sector while boosting its capability to handle consumer data.

Strategically implemented cloud computing services allow banks to utilize resources in a highly

flexible and efficient manner with the help of data analytics, data storage, and batch processing.
Further, the cloud technology also helps the banking industry to improve revenues, operational
efficiency, and the client servicing department.
Let us now see in detail some of the best ways the cloud computing technology benefits the
banking industry:

 Flexibility
The cloud enables the banking industry to rapidly adapt to the ever-changing consumer and
market needs. It provides an additional room for banks to meet future consumer demands and
this flexibility helps banks to sustain in the market.

 Agility
Cloud-based services can greatly enhance the productivity, agility, and efficiency of the banking
industry. It can help banks to reallocate resources and relieve their IT staff from the
administration of IT infrastructure, allowing them to focus on more innovative tasks such as
accelerating a product’s or service’s time to market. 
 Auto Scalability
On demand cloud services enable the banking industry to automatically scale resources
according to the requirements of the consumers. The capacity, redundancy, and resiliency risks
associated with traditional technology can easily be lowered with the help of cloud technology.
 Operational Efficiency
The cloud technology facilitates banks with the maximum possibility of integrating new
technologies and applications in future which maximizes the productivity of their operations. It
allows the IT staff of banks to focus on their core business operations and improve processes for
achieving higher operational efficiency. Leveraging a centralized management of data, cloud can
also help banks to eliminate complexities related to the changes and increase of data.

 Better Client Servicing

Cloud computing facilitates banks in faster development of products and services. It not only
allows the banking industry to boost computing power in order to meet the growing demands of
their customers, but also provides better insights which helps banks to create customized services
for their clients.

While it is true that the cloud computing technology has the power to transform the banking
sector, it is extremely important to opt for cloud computing services only from the leading cloud
service providers in India having globally recognized certified consultants who have vast
experience in providing banks with customized, state-of-the-art cloud solutions which help in
increasing their overall business efficiency and productivity.