INTRODUCTION OF BANKING

Definition of Bank: Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits of

money from the public, repayable on demand or otherwise and withdraw by cheque, draft or otherwise." -Banking Companies (Regulation) Act,1949 ORIGIN OF THE WORD BANK:The origin of the word bank is shrouded in mystery. According to one view point the Italian business house carrying on crude from of banking were called banchi bancheri" According to another viewpoint banking is derived from German word "Branck" which mean heap or mound. In England, the issue of paper money by the government was referred to as a raising a bank. ORIGIN OF BANKING: Its origin in the simplest form can be traced to the origin of authentic history. After recognizing the benefit of money as a medium of exchange, the importance of banking was developed as it provides the safer place to store the money. This safe place ultimately evolved in to financial institutions that accepts deposits and make loans i.e., modern commercial banks. Banking system in India Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process.

 HISTORY OF BANKING IN INDIA Banking in India has its origin as early or Vedic period. It is believed that the transitions from many lending to banking must have occurred even before Manu, the great Hindu furriest, who has devoted a section of his work to deposit and advances and laid down rules relating to the rate of interest. During the mogul period, the indigenous banker played a very important role in lending money and financing foreign trade and commerce. During the days of the East India Company it was the turn of agency house to carry on the banking business. The General Bank of India was the first joint stock bank to be established in the year 1786. The other which followed was the Bank of Hindustan and Bengal Bank. The Bank of Hindustan is reported to have continued till 1906. While other two failed in the meantime. In the first half of the 19th century the East India Company established there banks, the bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Bombay in1843. These three banks also known as the Presidency banks were the independent units and functioned well. These three banks were amalgamated in 1920 and new bank, the Imperial Bank of India was established on 27th January, 1921. With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of India was taken over by the newly constituted SBI. The Reserve Bank of India (RBI) which is the Central bank was established in April, 1935 by passing Reserve bank of India act 1935. The Central office of RBI is in Mumbai and it controls all the other banks in the country. In the wake of Swadeshi Movement, number of banks with the Indian management were established in the country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank of Baroda Ltd., Canara Bank. Ltd. on 19th July 1969, 14 major banks of the country were nationalized and on 15th April 1980, 6 more commercial private sector banks were taken over by the government. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They areas mentioned below:

 Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991. To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III. Phase I The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those days public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders.

Phase II Government took major steps in this Indian Banking Sector Reform after independence. In1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July,1969, major process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was nationalized. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: 1949: Enactment of Banking Regulation Act. 1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalization of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks. 1980: Nationalization of seven banks with deposits over 200 crore. After the nationalization of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions.

Phase III This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure. BANKS IN INDIA In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while others in both rural as well as urban. Many even are only catering in cities. Some are of Indian origin and some are foreign players. All these details and many more is discussed over here. The banks and its relation with the customers, their mode of operation, the names of banks under different groups and other such useful informations are talked about. One more section has been taken note of is the upcoming foreign banks in India. The RBI has shown certain interest to involve more of foreign banks than the existing one recently. This step has paved a way for few more foreign banks to start business in India.

BANKING STRUCTURE IN INDIA SCHEDULED BANKS IN INDIA Scheduled Commercial Banks

Public Sector Banks

Private Sector Banks

Foreign India

Banks

In Regional Banks

Rural

Nationalized Bank

Old Private Banks

Other Public Sector New Private Banks Banks (IDBI) SBI And Its

Associates

(2) Scheduled Cooperative Banks

Scheduled Urban Cooperative Banks

Scheduled State Cooperative Banks

Public Sector Banks: Public sector banks are those banks which are owned by the Government. The Govt. runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were also nationalized. Therefore in 1980 the number of nationalized bank 20. At present there are total 26 Public Sector Banks in India (As on 26-09-2009). Of these 19 are nationalized banks, 6(STATE

BANK OF INDORE ALSO MERGED RECENTLY) belong to SBI & associates group and 1 bank (IDBI Bank) is classified as other public sector bank. Welfare is their primary objective. Nationalised banks Other Public SBI & its Associates Sector Banks Allahabad Bank Andhra Bank Bank Of Baroda Bank Of India Bank Of Maharastra Canara Bank Central Bank Of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank Of Commerce Punjab & Sind Bank Punjab National Bank Syndicate Bank UCO Bank Union Bank Of India United Bank Of India Vijaya Bank (State Bank of Saurastra merged with SBI in the year 2008 and State Bank of Indore In 2010) State Bank of Bikaner And Jaipur State Bank of Travancore IDBI (Industrial State Bank of Hyderabad State Bank of India

Development Bank India)Ltd. State Bank of Patiala Of State Bank of Mysore

Private Sector Banks:

These banks are owned and run by the private sector. Various banks in the country such as ICICI Bank, HDFC Bank etc. An individual has control over their banks in preparation to the share of the banks held by him. Private banking in India was practiced since the beginning of banking system in India. The first private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of the fastest growing Bank Private Sector Banks in India. IDBI ranks the tenth largest development bank in the world as Private Banks in India and has promoted world class institutions in India. The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited, to set up a bank in the private sector banks in India as part of the RBI's liberalization of the Indian Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995. ING Vysya, yet another Private Bank of India was incorporated in the year 1930

Private sector banks have been subdivided into following 2 categories:Old Private Sector Banks Bank of Rajasthan Ltd. Catholic Syrian Bank Ltd. City Union Bank Ltd. Dhanalakshmi Bank Ltd. Federal Bank Ltd. ING Vysya Bank Ltd. Jammu and Kashmir Bank Ltd. Karnataka Bank Ltd. Karur Vysya Bank Ltd. Lakshmi Vilas Bank Ltd. Nainital Bank Ltd. Ratnakar Bank Ltd. SBI Commercial and International Bank Ltd. South Indian Bank Ltd. Tamilnad Mercantile Bank Ltd. United Western Bank Ltd. Bank of Punjab Ltd. (since merged with Centurian Bank) Centurian Bank of Punjab (since merged with HDFC Bank) Development Credit Bank Ltd. HDFC Bank Ltd. ICICI Bank Ltd. IndusInd Bank Ltd. Kotak Mahindra Bank Ltd. Axis Bank (earlier UTI Bank) Yes Bank Ltd. New Private Sector Banks

Foreign Banks In India

ABN AMRO Bank N.V. Abu Dhabi Commercial Bank Ltd American Express Bank Antwerp Diamond Bank Arab Bangladesh Bank Bank International Indonesia Bank of America Bank of Bahrain & Kuwait Bank of Ceylon Bank of Nova Scotia Bank of Tokyo Mitsubishi UFJ Barclays Bank BNP Paribas Calyon Bank ChinaTrust Commercial Bank Citibank DBS Bank Deutsche Bank

HSBC

(Hongkong

&

Shanghai

Banking

Corporation) JPMorgan Chase Bank Krung Thai Bank Mashreq Bank Mizuho Corporate Bank Oman International Bank Shinhan Bank Socit Gnrale Sonali Bank Standard Chartered Bank State Bank of Mauritius

Cooperative banks in India The Cooperative bank is an important constituent of the Indian Financial System, judging by the role assigned to co operative, the expectations the co operative is supposed to fulfil, their number, and the number of offices the cooperative bank operate. Though the co operative movement originated in the West, but the importance of such banks have assumed in India is rarely paralleled anywhere else in the world. The cooperative banks in India plays an important

role even today in rural financing. The businessess of cooperative bank in the urban areas also has increased phenomenally in recent years due to the sharp increase in the number of primary co-operative banks. Co operative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965. Rural banks in India Rural banking in India started since the establishment of banking sector in India. Rural Banks in those days mainly focussed upon the agro sector. Regional rural banks in India penetrated every corner of the country and extended a helping hand in the growth process of the country. SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI is spread in 13 states extending from Kashmir to Karnataka and Himachal Pradesh to North East. The total number of SBIs Regional Rural Banks in India branches is 2349 (16%). Till date in rural banking in India, there are 14,475 rural banks in the country of which 2126 (91%) are located in remote rural areas. Apart from SBI, there are other few banks which functions for the development of the rural areas in India. Few of them are as follows. Haryana State Cooperative Apex Bank Limited The Haryana State Cooperative Apex Bank Ltd. commonly called as HARCOBANK plays a vital role in rural banking in the economy of Haryana State and has been providing aids and financing farmers, rural artisans, agricultural labourers, entrepreneurs, etc. in the state and giving service to its depositors. NABARD National Bank for Agriculture and Rural Development (NABARD) is a development bank in the sector of Regional Rural Banks in India. It provides and regulates credit and gives service for the promotion and development of rural sectors mainly agriculture, small scale industries, cottage

and village industries, handicrafts. It also finances rural crafts and other allied rural economic activities to promote integrated rural development. It helps in securing rural prosperity and its connected matters. Sindhanur Urban Souharda Co-operative Bank Sindhanur Urban Souharda Co-operative Bank, popularly known as SUCO BANK is the first of its kind in rural banks of India. The impressive story of its inception is interesting and inspiring for all the youth of this country. United Bank of India United Bank of India (UBI) also plays an important role in regional rural banks. It has expanded its branch network in a big way to actively participate in the developmental of the rural and semi-urban areas in conformity with the objectives of nationalization. Syndicate Bank Syndicate Bank was firmly rooted in rural India as rural banking and have a clear vision of future India by understanding the grassroot realities. Its progress has been abreast of the phase of progressive banking in India especially in rural banks. Indian Banking Industry: In 2008, when the global banking industry was being shaken by the tremors of the unfolding financial crisis, only one bank in India felt the aftershocks, and this, only because one of its overseas subsidiaries had made an opportunistic bet on debt issued by the failed investment bank Lehman Brothers. While the market valuations of all the leading banks in India slipped as equity prices tumbled, their businesses were not affected and their balance sheets remained healthy. Most domestic commentators continue to hold up this episode as evidence of the inherent strengths of the Indian banking industry and have lauded the Reserve Bank of India (RBI), the countrys central bank and banking regulator, for sticking with its conservative approach. When regulators around the world were loosening their grasp over the banking and financial services

industry, RBI steadfastly held on to the strings that prevented banks in India from making risky investments and following highly aggressive business practices. Though some of the countrys younger banks have fast growing asset management and insurance businesses, the industrys bread and butter is still industrial lending. Asset Backed Securities and Collateralized Mortgage Obligations are still unheard of in the country, while Indian lenders warmed up to the idea of teaser rate mortgages only after the global financial crisis. So far, they do not appear to be any worse for it. The Indian banking industry is also well capitalized and capital ratios are above the global average. The average tier-1 capital adequacy ratio of the Indian banking industry is above 10%, when compared to the Basel III norm of 8.5% including the contingency buffer. The average total capital of banks in India stood at 14.5% as of March 31, 2010, compared to the Basel III requirement of 10.5%.

However, it can also be argued that the cautious regulatory controls have stifled the growth of the banking industry in India. This is the sector with the most entry barriers as the RBI has not issued new banking licenses for well over a decade. Foreign shareholdings in domestic banks are restricted and foreign banks have to wait years to get permission to start banking operations or expand their network. Except for a few cases where the large banks were encouraged by the RBI to acquire failing banks, the industry has not seen any meaningful consolidation. As a result, while India continues to move up the ranks of the largest economies in the world, most Indian banks are significantly smaller than their global counterparts. They are no match to even banks in other emerging economies like China, and only one bank from India is ranked among the global top-100 in terms of asset size. Also the cost of financial intermediation is relatively high in India and banks enjoy wide net interest margins. Access to banking services is poor across vast areas of the countrys rural hinterlands and as a result, more than 40% of the population does not have bank accounts and only about 15% have received some form of bank credit. The World Economic Forum currently ranks India 37th out of 55 countries in financial development, behind other large emerging economies like China, South Africa, and Brazil.

PROFILE OF UNION BANK OF INDIA The dawn of twentieth century witnesses the birth of a banking enterprise par excellenceUNION BANK OF INDIA- that was flagged off by none other than the Father of the Nation, Mahatma Gandhi. Since that the golden moment, Union Bank of India has this far unflinchingly traveled the arduous road to successful banking........ A journey that spans 88 years. The Union Bank of India, reiterates the objective of their inception to the profound thoughts of the great Mahatma... "We should have the ability to carry on a big bank, to manage efficiently crores of rupees in the course of our national activities. Though we have not many banks amongst us, it does not follow that we are not capable of efficiently managing crores and tens of crores of rupees." Union Bank of India is firmly committed to consolidating and maintaining its identity as a leading, innovative commercial Bank, with a proactive approach to the changing needs of the society. This has resulted in a wide gamut of products and services, made available to its valuable clientele in catering to the smallest of their needs. Today, with its efficient, value-added services, sustained growth, consistent profitability and development of new technologies, Union Bank has ensured complete customer delight, living up to its image of, GOOD PEOPLE TO BANK WITH. Anticipative banking- the ability to gauge the customer's needs well ahead of real-time - forms the vital ingredient in value-based services to effectively reduce the gap between expectations and deliverables. The key to the success of any organization lives with its people. No wonder, Union Bank's unique family of about 26,000 qualified / skilled employees is and ever will be dedicated and delighted to serve the discerning customer with professionalism and wholeheartedness. Union Bank is a Public Sector Unit with 55.43% Share Capital held by the Government of India. The Bank came out with its Initial Public Offer (IPO) in August 20, 2002 and Follow on Public Offer in February 2006. Presently 44.57 % of Share Capital is presently held by Institutions, Individuals and Others.

Over the years, the Bank has earned the reputation of being a techno-savvy and is a front runner among public sector banks in modern-day banking trends. It is one of the pioneer public sector banks, which launched Core Banking Solution in 2002. Under this solution umbrella, All Branches of the Bank have been 1135 networked ATMs, with online Telebanking facility made available to all its Core Banking Customers - individual as well as corporate. In addition to this, the versatile Internet Banking provides extensive information pertaining to accounts and facets of banking. Regular banking services apart, the customer can also avail of a variety of other valueadded services like Cash Management Service, Insurance, Mutual Funds and Demat. The Bank will ever strive in its Endeavour to provide services to its customer and enhance its businesses thereby fulfilling its vision of becoming THE BANK OF FIRST CHOICE IN OUR CHOSEN AREA BY BUILDING BENEFICIAL AND LASTING RELATIONSHIP WITH CUSTOMERS THROUGH A PROCESS OF CONTINUOUS IMPROVEMENT. The Vision Statement To become the bank of first choice in our chosen area by building beneficial and lasting relationship with the customers through a process of continuous process. The Mission Statement A logical extension of the Vision Statement is the Mission of the Bank,which is to gain market recognition in the chosen areas. To build a sizeable market share in each of the chosen areas of business through effective strategies in terms of pricing, product packaging and promoting the product in the market. To facilitate a process of restructuring of branches to support a greater efficiency in the retail banking field. To sustain the mission objective through harnessing technology driven banking and delivery channels.

 To promote confidence and commitment among the staff members, to address the expectations of the customers efficiently and handle technology banking with ease Board of Directors SHRI M.V.NAIR Chairman & Managing Director SHRI T.Y. PRABHU Executive Director SHRI S.Raman Executive Director Government of India Nominee SHRI K.V. EAPEN Government of India nominee on the recommendation of RBI. SHRI K. SIVARAMAN Chartered Accountant Director K.S. SREENIVASAN Director representing Workmen Employees SHRI N. SHANKAR Director representing Officer Employees DEBASIS GHOSH Government Nominee Director under General Category

SMT. RANI SATISH Government Nominee Director under General Category SHRI ASHOK SINGH Genesis of banking in India Banking in India organized in the first decade of 18th century with The General bank of India coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the State Bank of India being established as The Bank of Calcutta in Calcutta in June 1806. Couple of decades later, foreign banks like HSBC and Credit Lyonnais started their Calcutta operations in 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots and prospered. The first fully Indian owned bank was the Allahabad Bank set up in 1865. By the 1990s, the market expanded with the establishment of banks like Punjab National Bank, in 1895 in Lahore; Bank of India in 1906, in Mumbai- both of which were founded under private ownership. Indian banking sector was formally regulated by Reserve Bank of India from 1935. After Indias independence in 1947, the Reserve bank of India was nationalized and given broader powers. Structure of the organized banking sector in India. Number of banks is in brackets.

RESERVE BANK OF INDIA

Central bank and supreme monetary authority Scheduled banks Commercial banks Cooperatives

Foreign Banks [40]

Regional Rural Bank[196] Urban Cooperatives[52] State Co-Op[16]

Public Sector Banks [27]

Private Sector Banks [30]

Old [22]

New [8]

State Bank of India & Associate banks[8]

Other nationalized banks [19]

SBI Group The Bank of Bengal, which later became the State Bank of India. SBI with its seven associate banks command the largest banking resources in India, SBI and its associates banks are : State Bank of India State Bank of Bikaner and Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Saurashtra State Bank of Travancore

Nationalization The next significant milestone in Indian banking happened in the late 1960s when the then Indira Gandhi Government nationalized, on 19th July, 1964. 14 major commercial Indian banks, followed by nationalization of 6 more commercial Indian banks in 1980. The stated reason for the nationalization was more control of credit delivery. After this, until the 1990s, the nationalized banks grew at a leisurely pace of around 4% also called as the Hindu growth of the Indian economy. Currently there are 19 nationalized banks. Liberalization In the early 1990s the then Narsimha Rao government embarked on a policy of liberalization and gave license to a small number of private banks, which came to be known as New Generation tech-savvy banks, which included banks like ICICI Bank and HDFC Bank. This move along

with the rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. However, there had been a few hiccups for these new banks with many either being taken over like Global Trust Bank have found the going tough. The next stage for the India banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 100%.

Retail loans Offered by the Union Bank of India

ELIGIBILITY:

Any Resident Individual - Single Accounts, Two or more individuals in Joint Accounts, Illiterate Persons, Visually Impaired persons, Purdanasheen Ladies, Minors, Associations, Clubs, Societies, etc. Trusts, Institutions/Agencies specifically permitted by the RBI SALIENT FEATURES :

Simplest deposit option available to the depositor. An ideal option to cultivate the habit of banking and saving amongst the younger generation.

Easy to operate. Terms and conditions kept lucid to facilitate a layman's understanding No hidden costs

Zero balance facility. A Student can open Regular Saving Account with zero balance Deposits are insured by DICGC Interest @ 4% p.a, are being calculated on daily product basis from 01.04.2010 and will be credited twice in a year in Feb and August or at the time of closing the A/c

Any Where / Any Time Banking of your Choice as follows: Branch Banking ATM Banking Net Banking Phone Banking

Provision for nomination

MINIMUM BALANCE REQUIREMENT CENTRES Metro Urban Semi Urban Rural WITHOUT CHEQUE BOOK 500 500 250 100 WITH CHEQUE BOOK 1000 1000 500 250

Term Deposit Interest Rate Effective from 21/02/2013 ( Percentage per Annum)
Period 7 day 14 day 15 day 45 day 46 day 90 day 91 day 120 day 121 day-179 day 180 day to < 1 year 1 year to < 3 year 3 year to <7 year 7 month 7year 7month >7year 7month to 8year > 8 yearto 10 year < Rs 15 lacs Rs 15 lacs to < Rs 1 Cr Rs 1 Cr to < Rs 5 Cr Rs 5 Cr to Rs 10 Cr

4 4.75 6.25 7.25 7.75 8.5 9 9 9.25 9 8.75

4 4.75 6.25 7.25 7.75 8.5 9 9 9 9 8.5

4 4.75 6.25 7.25 7.75 8.4 9 8.9 8.9 8.9 8.5

4 4.75 6.25 7.25 7.75 8.4 9 8.75 8.75 8.75 8.5

Domestic Term Deposit Interest rate payable on deposits above Rs.10 Crs with effect from 29 th March 2013 is as follows: Deposits more than Rs.10Crs to Rs.50Crs. 8.50 7.50 8.50 8.75 Deposits more than Rs.50Crs

Period

7-14 days 15-179 days 180-364 days 1 year-3 years

8.50 7.50 8.50 8.75

BENEFITS TO SENIOR CITIZENS Union Bank offers an additional rate component (over and above the normal interest rates applicable) to senior citizen on any size of deposit in all of its domestic term deposit schemes.
This additional rate component, applicable to domestic term deposits of one year and above is 0.50% over the normal rate. ELIGIBILITY: Any person who has completed the age of 60 years is treated as a senior citizen for obtaining the benefit of the additional interest. JOINT ACCOUNT Senior citizen may deposit jointly with other persons below the age of 60, under the special scheme for senior citizen. In such cases the name of the senior citizen is to be given as the first name in the application. NRI Senior Citizens are not eligible for the benefit of additional interest available to resident senior citizens. DOCUMENTATION: At the time of opening of a new deposit account, the senior citizen may produce any of the following documents as proof of age. 1. Senior School Leaving Certificate indicating date of birth. 2. LIC policy 3. Voters Identity Card 4. Pension Payment Order 5. Birth Certificate issued by the competent authority 6. Passport 7. Any other document acceptable to the bank VERIFICATION:

Once the age of a senior citizen is verified for accepting deposit under the special scheme for senior citizens, no further proof of age is required while accepting subsequent deposits or for renewal of deposit of the senior citizen..

OPERATION OF ACCOUNT Deposit accounts opened in joint names of two or more individuals will have a mandate for disposal of the balance in the account on the date of maturity and/or on the death of one or more joint depositors. These mandates are as under:Either or Survivor: If the account is in the name of two individuals say, A & B, the final balance along with interest, if applicable, will be paid to the either of the account holder i.e. A or B on the date of maturity or to the survivor on death of anyone of the account holders. Anyone or Survivor: If the account is in the name of two or more individuals say, A, B and C, the final balance along with interest, if applicable, will be paid to any of the account holders is A or B or C on the date of maturity On the date of any one of the account holder say A, the final balance along with interest if applicable will be paid to any two of the surviving account holders i.e. B or C. On the death of any two of account holders say A and B, the final balance along with interest, if applicable will be paid to surviving account holder i.e. C. Former or Survivor: If the account is in the name of two individuals say, A & B, the final balance along with interest, if applicable, will be paid to the former i.e. A on date of maturity and to the survivor on death of anyone of the account holders. Latter or Survivor: If the account is in the name of two individuals say, A & B, the final balance along with interest, if applicable, will be paid to the latter i.e. B on date of maturity and to the survivor on death of anyone of the account holders.

NOMINATIONS Nomination facility available for bank deposits. There can be only one Nominee for a deposit account whether held singly or jointly. A resident can nominate NRI as Nominee but the repatriation of amount will be only after permission from RBI. A person legally empowered to operate a minor's account can file a nomination on behalf of the minor. Applicants can make nomination by filling up the Form prescribed under the Banking Companies (Nomination) Rules 1985 The nomination details can be changed during the subsistence of the account relationship by filling up the Form prescribed under the Banking Companies (Nomination) Rules 1985

SERVICE CHARGES
UNION BANK OF INDIA

Our Bench Prime Lending Rate [BPLR] Our Base Rate

w.e.f. 09/02/2013 w.e.f. 09/02/2013

14.75%

10.25% .

UNION CAPITAL GAIN SCHEME

The Scheme is in force from 22nd June, 1988. The amount so deposited under this scheme would be required to be utilized by the assessee, within the specified period, for acquisition of new asset under the respective Section of the Income Tax Act, 1961. Under this scheme, the tax payers can avail of the benefit of exemption from Capital Gains, if the amount of Capital Gains or the net consideration is deposited in the bank on or before the due date of filling the return of income.

OPENING OF ACCOUNTS Accounts under the Scheme can be opened only at Semi-Urban / Urban / Metropolitan Branches Two types of deposit accounts can be opened under this Scheme DEPOSIT 'A' The deposits made under this account shall be in the form of Savings Bank Deposits DEPOSIT 'B' Deposit made under this account will be in the form of Term Deposits, with an option to retain the deposit either as "cumulative" i.e. similar to our DRC Deposit [with interest reinvested] or as noncumulative i.e. similar to our Fixed Deposit Such deposits may be made as a single lump sum amount or in instalments at any time on or before furnishing the Income Tax Return WITHDRAWALS Withdrawals under Deposit Account - A can be made from time to time by the depositor, subject to prevailing terms and other provisions of the Scheme, by submitting the requisite form Withdrawals under Deposit Account - B can be made after the expiry of the deposit period FLEXI DEPOSIT SCHEME Now, with Union Banks Flexi Deposit Scheme you can sit back and relax, while you enjoy the high returns of a Fixed Deposit in your regular Savings Account. To put it simply, have the best of both worlds! And whats more, you get the convenience of a free ATM / International Debit Card. SALIENT FEATURES PURPOSE This all-new Deposit Scheme has integrated features of the Savings Deposit and Fixed Deposit, namely liquidity with higher interest returns on surplus funds. HOW DOES THE SCHEME WORK? Opening

 The depositor will open a Savings Bank Flexi Account with a minimum initial amount of Rs 15,000/ The system will create a linked Fixed Deposit Flexi Account and transfer to it the surplus funds over Rs 10,000/- in multiples of Rs 5,000/- [called units]. Any surplus beyond multiples of Rs 5,000/- will be retained in the SB Flexi Account Assuming the initial amount is exactly Rs 15,000/-, the SB Flexi Account will have exactly Rs 10,000/- and the linked FD Flexi Account will have exactly Rs 5,000/- i.e. one unit. If the initial amount is more, the SB Flexi Account will have a balance of Rs 10,000/- or more but less than Rs 15,000/-, such that the linked FD Flexi Account balance will be in multiple units of Rs 5,000/- with minimum Rs 5,000/ All the linked Fixed Deposits will have the same maturity period , which will be decided on by the depositor at the time of opening itself Transactions Whenever the outstanding balance in the SB Flexi Account reaches Rs 15,000/- or more, the excess amount over Rs 10,000/- will be transferred to the linked FD Flexi Account as units of Rs 5,000/ Whenever the outstanding balance in the SB Flexi Account goes below Rs 10,000/- the gap will be bridged by transfer from the linked FD Flexi Account in units of Rs 5,000/-. The balance in SB Flexi Account will not be allowed to fall below Rs 10,000/ Transfer of funds from FD Flexi to SB Flexi Account will be under LIFO ( Last in First Out ) method where the linked FD units created most recently will be closed first for transfer to the SB Flexi Account

WHO CAN OPEN AN ACOUNT?

All individuals, singly or jointly who are eligible to open Savings A/C -- this scheme is also open to Non-Resident Indians who are eligible to open an account as per or existing rules and regulations. PERIOD OF DEPOSIT The Fixed period will vary between 46 days to 5 years. In case of NRI Deposit, minimum period will be one year. AMOUNT OF DEPOSIT Minimum Rs 15,000/-, which will be adjusted by the system as: A minimum Rs 10,000/- as a Savings Bank Account. A Minimum of Rs 5,000/ - as a linked Fixed Deposit, with higher amounts in multiples of Rs ,5000/RATE OF INTEREST As applicable to Savings Bank Deposit and Fixed Deposit in force from time to time. Interest will be paid on a quarterly basis on the Fixed Deposit Flexi Account. DEPOSIT RECEIPT A Passbook will be issued to the depositor with all the details of SB Flexi Account, the linked FD Flexi Account, TDS adjustment if any etc No separate Deposit Receipt shall be issued by the Bank for the Union Flexi Deposit Scheme OTHER FEATURES Free credit card to depositors who maintain a minimum balance of Rs 1.00 lac An International Debit Card will be issued free of cost to all deposit holders under this scheme Roll over of deposit on maturity is permitted A penalty of Rs 25/- per month will be levied in case of non-maintenance of minimum balance [Rs 10,000/-] in the SB Flexi Account and / or in the linked FD Flexi Account [Rs 5,000/-] Nomination facility is available

TDS is applicable on the deposits in the linked FD Flexi Account No loan / overdraft / lien will be per

NO FRILLS SAVINGS ACCOUNT Open a "No Frills savings account" with UNION BANK OF INDIA and avail necessary banking facilities while maintaining a nominal minimum balance.

Salient Features of NO FRILLS SAVING ACCOUNT

All resident individuals eligible to open a "No frills saving account" except NRIs,trusts, societies, etc.

Any number of accounts in a family can be opened under this scheme. In north eastern states account can be maintained with zero balance. No cheque book facility will be available. One ATM / International debit card will be issued to the account holder.

Withdrawal of cash will be available only through ATM wherever online ATM facility is available. At other branches, withdrawals will be through withdrawal slip.

Number of free customer induced debit entries will be restricted to 30 per half year including debit entries through ECS/ATM. Entries above 30 will be charged @ Rs.5/- per entry.

Total credits in the account should not exceed Rs.1,00,000/- in a year. There is no restriction on entries for deposit of Cash/Cheques in the

account.

Nomination facility is available. The balance in all the accounts of the accountholders taken together in the bank should not exceed Rs.50,000/-.

CURRENT ACCOUNT Eligibility:Any Resident Individual - Single Accounts, Two or more individuals - Joint Accounts, Sole Proprietary Concerns, Partnership Firms, Illiterate Persons, Visually impaired Persons, Minors(account to be operated by Guardian), Limited Companies, Associations, Clubs, Societies, etc. Trusts, Joint Hindu families (accounts of non-trading nature only), Municipalities, Government and Quasi-Government Bodies, Panchayats, Religious Institutions, Educational Institutions (including Universities), Charitable Institutions Benefits Card Convenience ATM cards are given to individual current accounts, joint individuals and to the accounts of proprietary concerns. Get your ATM card have access to the wide network of ATMs across the country to withdraw cash, enquire about your balance, mini statement of accounts, recharging mobiles etc. Moreover, your card enables you to shop at a large number of Merchant Establishments in India. You can also avail yourself of our ATM-cum- Debit Card, which is truly international and which can be used within as well as outside India, at a nominal fee.

Easy and Wide Accessibility Transact at your convenience, saving time and cost through Union Bank Internet Banking.You can also use ATM card at any Banks ATMs, subject to nominal charges of Rs 20/ per transaction Monitoring Your Account Monitor and control your funds through Union Bank Internet Banking or/ and through Passbook/ statement of account facility.

Transaction Ease Unlimited number of payments. Make payments by giving us standing instructions. Remit funds from any part of the country to your account. Upcountry cheque collection facility

Other Benefits Overdraft facility Transfer of accounts between our wide network of branches without any charge Nomination Facility - Available. Low minimum balance requirements Internet Banking facility is available

Application Form

Proof of identity (any of the following ) for individuals

o o o o o

Passport PAN Card Employee identity card Driving License Any other valid proof

Proof of address (any of the following)

o o o o o o o

Electricity bill ( should not be older than three months) Telephone bill Ration card Statement of account from existing bank Income / wealth tax assessment Document / communication issued by GOI / State Govt/ Local Body Any other valid proof

2 Photographs Introduction Memorandum and articles of association (wherever required) Certificate of commencement of business (wherever required) Certificate of commencement of business Partnership deed (wherever required) Certificate of incorporation and Board Resolution (wherever required) Any other related documents applicable to proprietor ship concern, Partnership Firm, Company, HUF etc.