CIRCULAR GIST – 2013
Circular
No.
2 / 2013
Subject
DRAWING CREDIT INFORMATION REPORTS (CIRs) FROM CIBIL –
DELEGATION OF POWERS - MODIFICATION
 Branches/ offices need not take into cognizance of defaults upto
Rs.5000/ Need based credit facilities can be considered by respective
sanctioning authorities wherever credit card overdues are below
Rs.25000/- and beyond that subject to pre-clearance by the next
higher authority
 A report on overdue liabilities written off/ settled status by
sanctioning authority shall be a part of the office note placed for
decision and a monthly reporting in the format furnished shall also
be submitted.
3 / 2013
POLICY GUIDELINES ON RATIFICATION OF ACTION
 Maximum period of 30 days from the date of receipt of the request
for ratification is permitted
 The sanctioning authority shall grant or reject the request for
ratification of the action within 15 days of receipt of report from
the branch and in case of any queries/ clarifications, another
15 days for taking final decision, otherwise, the transaction in
question shall be deemed to have been approved by the competent
authority.
 The branch shall record the same in the web based NB 139/NB
179 with full details and proper authentication of the authority
concerned who has permitted such actions.
 The branch shall prepare the ratification note in triplicate (CO
power accounts) and quadruplicate (HO power accounts).
 The unique identification No. generated by the system (NB-139/
NB-179) shall be noted in the Ratification Note for follow up
purpose.
 To submit the ratification note, both CO powers and HO powers,
to the CO within 2 days of permitting the facility.
6/2013
REVISION IN EXISTING INVESTMENT LIMITS IN PLANT AND
MACHINERY / EQUIPMENT FOR LENDING TO MICRO
ENTERPRISES IN THE 40:20 PROPORTION
 Advances to micro and small enterprises sector will
be reckoned in computing achievement under the overall
priority sector target of 40 percent of ANBC or CE_OBS
Exposure, whichever is higher.
 40 percent of total advances to micro and small enterprises
sector should go to Micro (manufacturing) enterprises
having investment in plant and machinery up to 10 lakh and
micro (service) enterprises having investment in equipment up
to 4 lakh;
 20 percent of total advances to micro and small enterprises
sector should go to Micro (manufacturing) enterprises with
investment in plant and machinery above 10 lakh and up to
7/2013
BI8/2013
9/2013
25 lakh, and micro (service) enterprises with investment in
equipment above 4 lakh and up to 10 lakh
BASE RATE – EXEMPTIONS
a) DRI advances
b) Loans to Banks' employees including retired employees
c) Loans to Banks' depositors against their own deposits
d) Lending at interest rates not exceeding 5% p.a. where
refinance of government is available under Jawaharlal Nehru
National Solar Mission (JNNSM)
e) Lending at interest rates prescribed under the schemes of
NSTFDC/ NHFDC to the extent refinance is available and such
lending would not be considered as violation of Base Rate
guidelines even if it is below the Base Rate. However, interest rate
charged on the part not covered under refinance shall not be below
Base Rate
f) Lending to National SafaiKarmacharis Finance & Development
Corporation (NSKFDC) to the extent refinance available, even if
the interest charged at the rates prescribed under the scheme is
below the Base Rate. However, interest rate charged on the part
not covered under refinance shall not be below the Base Rate.
g) The schemes of National Scheduled Castes Finance &
Development Corporation (NSFDC) to the extent refinance is
available. Interest rate charged on the part not covered under
refinance should not be below the Base Rate
Report 160002 in Business Objects to know Account Details for a given
Mobile Number
 Whenever branches receive such complaints for wrong SMS,
they are requested to generate the Report : 160002 and take
steps for correction / deletion of the wrong mobile number in
CIM09 so that no further SMS will be sent to the subject
mobile number
KYC Non-Compliant Accounts.
Following modifications in the KYC/AML measures to be adopted by the
banks in case of KYC non-compliant accounts:
 Where the branch is unable to apply appropriate KYC
measures due to non furnishing of information and / or noncooperation by the customer, the bank should consider
closing the account or terminating the banking/ business
relationship after issuing due notice to the customer
explaining the reasons for taking such a decision.
 Such decisions need to be taken by the Branch-in-charge.
 Before taking the extreme step of closing an account on
account of noncompliance with the KYC/AML requirements,
as an initial measure, branches are advised to place such
accounts under close watch (should not extend beyond a
period of three months) , depriving the non-compliant
customers certain additional facilities, till the customer
complies with such requirements.
 If the customer despite such measures, shows
unwillingness to comply with KYC/AML/CFT
requirements, branches would be free to proceed further and
close the accounts after giving due notice to him/her.
10/2013
11/2013
12 / 2013
SAFE KEEPING OF MORTGAGE PAPERS - BALANCING AND
VERIFICATION OF MORTGAGE PAPERS
 Branches/Retail Asset Hubs (RAH) shall take balancing of
mortgage papers including that of closed loans and
advances which are not yet delivered to mortgagors, once in a
half year i.e., as on 20th of February and August every year and
also during Risk Based Internal Audit (RBIA).
 Confirmation on Balancing of Mortgage papers is to be given in
PRR 18 for the month of February and August of every year
Financial Literacy Centres (FLCs)—Revised Guidelines
 There can be more than one FLC in a district.
 Financial literacy activities will also be undertaken by all the
rural branches of Scheduled Commercial Banks.
 The Financial Literacy Centers (FLCs) will impart literacy in
the form of simple messages like Why Save, Why Save early in
your Life, Why Save with banks, Why borrow from Bank, Why
borrow as far as possible for income generating activities, Why
repay in time, Why insure yourself, Why Save for your retirement
etc.
 At least once in a year, impact evaluation of literacy efforts is to be
undertaken by Circle Offices so as to make way for continuous
improvement.
REVISED IN-BUILT OVERDRAFT FACILITY TO BASIC SAVINGS
BANK ACCOUNT (NO FRILL ACCOUNTS) HOLDERS IN FI VILLAGES
 The amount under Inbuilt Overdraft facility has been
enhanced from the present limit of Rs.500/- to need based
limit uptoRs. 10,000/- to new customers under financial
inclusion (no-frill account holders in allotted financial
inclusion villages), whose household annual income in rural
areas does not exceed Rs.60,000/- and for non-rural areas it
should not exceed Rs.1,20,000/-.
 The enhancement in the limit of IOD facility can be permitted
upto Rs.25,000/-, for the existing customers who have
satisfactory transaction track record for the past one year in
respect of Basic Saving Bank (No-frill a/c) holder in FI
villages again satisfying the income criteria as detailed
above.
 Branch in charge to permit enhancements up to
Rs.50,000/- under the IOD facility provided the no-frill
account holder satisfies the following conditions:
a. No-frill account holders who are non-farmers and
landless labourers whose annual household income
does not exceed Rs.60,000/- and for non-rural areas it
should not exceed Rs.1,20,000/-.
b. The account have not less than 12 transactions per
year
c. Interest charged on IOD should have been cleared
d. The customer should have earlier availed the facility
and should have conducted the account satisfactorily
for a minimum period of one year& the account should
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have remained regular thereafter.
e. The customer should not have availed any other credit
facility and should continue to maintain the Basic
Savings Bank account.
f. Will be classified under Priority Sector.
Rate of interest : Base Rate is to be applied to all IODs
irrespective of limit.
Due Date of Closure: 3 years from the date of IOD.
Interest to be served annually
If interest is not cleared within 90 days from date of debit,
account will be classified as NPA
Wherever suitable need based credit facility is
sanctioned/permitted this IOD facility shall be closed
Period for which the facility can be permitted: 3 years subject to
annual review
Simple interest to be debited yearly on the last day of the
anniversary month
Overdue/Penal Interest- ROI applicable + 2% (in respect of
all account beyond Rs 25000/-)
Overdue: Interest charged to IOD account to be repaid within
90 days. The account will become overdue one month after
application of interest and shall reflect in SWL and will
become NPA after 90 days of charging interest.
IOD can be extended to only one person from a household (family)
Only Non Farmers and Land Less Labours are eligible for enhanced loan
of Rs.50,000/-
14/2013
18/2013
In eligible customers: Students, Minors, customers having other
facilities.
NEW INCOME TAX -TDS PORTAL “TRACES”
 “TDS Reconciliation Analysis and Correction Enabling SystemTRACES”.
 TRACES is a web-based portal of the Income Tax
Department that provides an interface to all stakeholders
associated with TDS administration.
 It enables viewing of challan status, downloading of NSDL
Consolidated File, downloading of Justification Report, viewing/
downloading of Form 26AS and Form 16 / 16A as well as
verification of deductee PAN.
Canara Basic Savings Bank Deposit Account (Product code 108)
 Conversion of existing Canara Saral Savings Bank Deposit
Account into “Canara Basic Savings Bank Deposit Account” in
tune with the directions of RBI.
 The Basic Savings Bank Deposit Account should be considered a
normal banking service available to all.
 This account shall not have the requirement of any minimum
balance.
 Facility of ATM card or ATM-cum-Debit Card is to be extended.
19/2013
 The services available in the account will include deposit and
withdrawal of cash at bank branch as well as ATMs; receipt/credit
of money through electronic payment channels or by means of
deposit/ collection of cheques drawn by Central/ State
Government agencies and departments.
 While there will be no limit on the number of deposits that can be
made in a month, account holders will be allowed a maximum of
four withdrawals in a month, including ATM withdrawals.
 facilities will be provided without any charges
 No charge will be levied for non-operation/ activation of
inoperative “Basic Savings Bank Deposit Account”.
 Holders of Canara Basic Savings Bank Deposit account will not be
eligible for opening any other Savings Bank Deposit account in the
Bank
 If a customer has any other existing Savings Bank Deposit account
in the Bank, he/she will be required to close it within 30 days
from the date of opening a Canara Basic Savings Bank Deposit
account.
 Once the account holder keeps a balance of more than
Rs.50,000/- in the account opened under the scheme and in any
other deposits account, or if the total credit in one year in all the
deposit accounts including the account opened under the scheme
exceeds Rs.1 lakh, then such account would cease to be a
Canara Basic Savings Bank Deposit account. Further
transactions in his/her Canara Basic Savings Bank Deposit
account shall not be permitted.
 In order not to inconvenience the account holder, he/she shall be
notified when the balance reaches Rs.40,000/- (Rupees Forty
Thousand Only) or the total credit in a year reaches Rs.80,000/(Rupees Eighty Thousand Only).The operations in the account will
be stopped when the total balance in all the accounts taken
together exceeds Rs.50,000/- or the total credit in the accounts
exceed Rs.1 lakh in a year.
 waiver of collection charges in case of cheques drawn
by State/ Govt. agencies/departments
 introduction is not mandatory for Canara Basic Savings Bank
Deposit account
National Scheme of Incentive to Girls for Secondary Education
(NSIGSE) -Introduction of new product -128- “Canara NSIGSE Savings
Bank Deposit” account.
ELIGIBILITY:
 All SC/ST girls who pass class VIII and Girls who pass class
VIII examination from Kasturba Gandhi Balika Vidyalayas
(irrespective of whether they belong to SC/ST) and enroll for
class IX in State/UT Government, Government aided or
local body schools in the academic year 2008-09 onwards.
Excluded
INCENTIVES/ INCOME CRITERIA:
of India has been providing financial assistance to the State/UT
Governments for depositing cash incentives to the eligible girl
students under the National Scheme of Incentive to Girls for
secondary Education (NSIGSE).
Governments for depositing the same as a Fixed Deposit in favour
Of the eligible girls.
- and the term/ period of
the deposit may be counted from the date of deposit to the date on
which the girl child attains the age of 18 years.
Girls are entitled to withdraw it along with interest thereon on
reaching 18 years of age and on production of the specified
documents i.e.
10th class pass certificate; and
beneficiary has continued her study for at least two years after
enrolment in class IX.
In the event of death of the student before attaining the age of 18 years,
the amount of incentive is to be transferred to the Central Government
account.
authentication by the School Authorities to be obtained.
-cum-no objection letter should be obtained from the
natural guardian of the minor to the effect that the minor has
acquired sufficient knowledge about opening/operating the Bank
account
opened with zero balance
is not operated for two years or more.
22/2013
23/2013
27/2013
USE OF SFMS FOR SENDING AND RECEIVING INLAND
DOCUMENTARY LETTER OF CREDIT (ILCs).
A middleware viz., "XMM - (Xchanging Messaging Middleware)"
is procured to interface Flexcube Corporate and SFMS.
Census Code:
namely state/district/sub district/village codes.
Financing to Micro, Small & Medium Enterprises Sector- Reiteration
of Guidelines:
Mandatory norms for Growth under lending to Micro & Small Enterprises
(Priority Sector)
1. Annual growth rate under lending to Micro and Small
enterprises shall be a minimum of 20%.
2. There should be a minimum increase of 10% in number
of accounts under Micro Enterprises every year.
3. Outstanding advances to Micro Enterprises should
constitute 60% of the total advances to MSE sector as at
March 2013.
4. Out of the 60% of MSE advances mentioned above, 40% of
the advances under Micro and Small Enterprises shall be to
Manufacturing units whose original investment in plant
machinery is up to Rs 10 lakhs and/or to the Service
Enterprises whose original investment in equipments is up to
Rs.4 lakhs and
5. Remaining 20% shall be to Manufacturing units with original
investment in plant and machinery is above Rs.10 lakhs and
up to Rs.25 lakhs and/or to Service Enterprises with
original investment in equipments above Rs.4 lakhs and up
to Rs.10 lakhs.
31/2013
 Ensuring Collateral Free Lending of Loans under MSE sector up to
Rs.10 lakhs
 For loans/limits above Rs.10 lakhs and up to Rs.100 lakhs also,
branches shall cover the same under the credit guarantee for
micro and small enterprises of CGTMSE unless the borrower
requests in writing to waive the CGTMSE coverage and
undertakes to provide collateral security to the extent of 100% of
the loan amount in lieu of the CGMSE of CGTMSE.
 Quarterly Statement of applications received, sanctioned/rejected
( PSR 22 ) Branches shall submit the statement within 5th of the
succeeding month from the end of quarter and Circles shall submit
the consolidated statement to SME Business Unit, MSME Wing,
HO within 10th of the succeeding month from the end of the
quarter.
 Branches to note that rejection of loan applications under MSE
sector shall be with the concurrence of the next higher authority
only.
TIME NORMS FOR DISPOSAL OF LOAN APPLICATIONS –
REITERATION
 Loans upto Rs.25000/- : 15 days
 Kisan Credit Card - Branch Powers : 15 days
 Other Priority Sector advances : BRANCH/CO/HO
Loans / advances upto Rs.25,000/- : 30 days /45 days /8 - 9
weeks
Micro, small and medium enterprises (MSME) (From the date of
receipt of completed loan applications)
 Loans up to RS.25000/- : 2 weeks
 Loans beyond Rs.25000/- and upto Rs.5 lakhs : 4 weeks/4 weeks/
4 weeks
 Loans over Rs.5 lakhs and upto Rs.25 lakhs : 30 days /45 days
/45 days
 Loans over Rs.25 lakhs : 30 days / 45 days / Within a max. of 8
weeks
Export Credit
 Sanction of fresh/ enhanced credit limits : 30 days / 45 days/45
days (25 days for Gold Card scheme for all)
 Renewal of existing credit limits : 30 days/30 days/30 days (15
days Gold Card)
 Sanction of adhoc credit facilities : 15 days/15 days/15
days (7 days Gold Card scheme for all ie Branch/CO/HO)
Advances under Sole Banking, Multiple Banking Arrangement,
consortium and other than the above [(1) to (4)] the credit proposals
shall be disposed off within the time frame as stated hereunder
 Sanction of fresh/ enhanced credit limits : 30 days /45 days/60
days (export:30/45/45 days)
 Renewal of existing credit limits : 30 days / 45 days / 45 days
(export:30 days all)
 Sanction of adhoc credit facilities : 30 days all (export: 15
days all)
32/2013
DPN LOAN TO EMPLOYEES OF THE BANK – CLARIFICATIONS
 Eligibility: All confirmed employees who have completed 3
years of total service
 Quantum of loan: One and half months gross salary for
every completed year of service with a maximum of 15
months gross salary or the following amount whichever is
less:
o Officers Rs.5 lacs
o Workmen Rs.3 lacs
o Sub-staff/PTEs/HKPs Rs.1.75 lacs
 Repayment: 120 EMIs
 Net Take Home Salary: Not less than 40% of the gross emoluments
 Rate of Interest : 9% p.a. compounded monthly
 The gap between closure of DPN and availment of subsequent
DPN shall be a minimum of 1 year.
33/2013
KYC/AML Norms- Procedure for determination of Beneficial Ownership
 The term "Beneficial Owner" has been defined as the
natural person who ultimately owns or controls a client
and/or the person on whose behalf the transaction is being
conducted, and includes a person who exercises
ultimate effective control over a juridical person.
 A juridical person has been defined as an Entity, as a firm,
that is not a single natural person, as a human being,
authorized by law with duties and rights, recognized as a
legal authority having a distinct identity, a legal personality
(Also known as artificial person, juridical entity, juristic person,
or legal person). Controlling ownership interest means
ownership of/entitlement to more than 25% of shares or
capital or profits of the juridical person, where the juridical
person is a company;
- ownership of/entitlement to more than 15% of the capital
or profits of the juridical person where the juridical
person is a partnership; or,
- ownership of/entitlement to more than 15% of the
property or capital or profits of the juridical person where
the juridical person is an unincorporated association or
body of individuals.
34/2013
REHABILITATION OF SICK MICRO AND SMALL ENTERPRISES
(MSE)
Handholding Stage (early signs of sickness)
a. Delay in commencement of commercial production by more
than 6months for reasons beyond the control of the
promoters;
b. Unit incurring losses for 2 years or cash loss for 1 year,
beyond the accepted time frame;
c. Capacity utilization is less than 50% of the projected level
in terms of quantity or the sales are less than 50% of the
projected level in terms of value during a year.
Definition of Sickness:
Any of the borrowal account of the unit remaining NPA for 3 months
or more OR the enterprise reflecting erosion of net worth
due to accumulated losses to the extent of 50% of its net worth
during the previous accounting year.
35/2013
CTS-2010 STANDARD CHEQUES ARE MADE PAYABLE AT PAR
AT ALL OUR BRANCHES IN INDIA
36/2013
INCENTIVES TO BUSINESS CORRESPONDENT AGENTS AND
OTHERS FOR SECURING SWAVALAMBAN ACCOUNTS UNDER
NATIONAL PENSION SYSTEM (NPS)
 For promoting Swavalamban scheme, engage the services
of Business Correspondent Agents and others for securing
more number of Swavalamban accounts and to pay
incentives @ Rs. 20 per eligible account to these agencies
who are instrumental in securing the accounts.
 SWAVALAMBAN: The minimum annual contribution of
Rs.1035
RAJIV GANDHI EQUITY SAVINGS SCHEME (RGESS) - A NEW TAX
SAVINGS SCHEME FOR INVESTMENT IN SELECTED SHARES
 This scheme would give tax benefits to new investors who invest up
to Rs.50, 000/- and whose gross annual income is less than or
equal to Rs.10/- lakhs
 Under this scheme, a one time deduction for income tax purposes
will be available to a “new retail investor” who will be eligible for a
deduction of 50% on the actual amount invested in “eligible
securities” in the first financial year.
 Maximum limit for investment is Rs.50, 000/- under the newly
introduced Section 80 CCG.
INTRODUCTION OF TAX RESIDENCY CERTIFICATE(TRC)
FOR AVAILMENT OF DTAA BENEFIT ON TDS ON INTEREST ON
NRO RUPEE DEPOSITS
 All Branches/Offices are advised to obtain Tax Residency
Certificate (TRC) or Form 10FB (as per annexure II) as
mentioned above from the NRI customers for making
available DTAA tax benefits.
 Obtention of TRC or Form No 10FB is made mandatory with
effect from 01.04.2013 onwards.
E-Tracking of Loan applications under Prime Minister’s Employment
Generation Programme (PMEGP)
38/2013
45/2013
47/2013
53/2013
55/2013
 Khadi & Village Industries Commission(KVIC), Ministry of Micro,
Small and Medium Enterprises(MSME), Govt. of India is the
Nodal Agency for implementing the Prime Minister’s Employment
Generation Programme (PMEGP) in the country.
 Khadi & Village Industries Commission(KVIC) has developed a
Web based package for e-Tracking of Prime Minister’s
Employment Generation Programme (PMEGP) loan
applications
SPECIAL SCHEME FOR ONE TIME SETTLEMENT OF DOUBTFUL &
LOSS ASSETS IN MICRO, SMALL AND MEDIUM ENTERPRISES
(MSME) SECTOR
 The Scheme will cover Doubtful & Loss Assets in MSME
sector which are outstanding as on 31.12.2012 with total dues
of Rs.100.00 lacs and below as on the date of settlement.
 However, accounts should have been NPA for at least one year.
THE ENFORCEMENT OF SECURITY INTEREST AND RECOVERY OF
DEBTS LAWS (AMENDMENT) ACT, 2012
Amended provision:
If the objection/representation is not acceptable or tenable, the
secured creditor shall communicate within "fifteen days" of receipt of
such representation or objection the reasons for non acceptance of
the objection/representation to the borrower
Where the sale of immovable property, for which a reserve price has
been specified, has been postponed for want of bid of an amount not
less than such reserve price, it shall be lawful for any officer of
the secured creditor, if so authorised by the secured creditor in this
behalf, to bid for the immovable property on behalf of the secured
creditor at any subsequent sale
In case of consortium/ MBF, for initiating action u/s 13(4) the consent
of secured creditors representing not less than "sixty percent" in
value of the amount outstanding as on record date should be
obtained
Record date means the date agreed upon by the secured creditors
representing not less than "sixty percent" in value of the amount
outstanding on such date
RDBF ACT :
The defendant shall, within a period of thirty days from the
date of service of summons, present a written statement of this
defence.
57/2013
Provided that where the defendant fails to file the written statement
within the said period of thirty days, the Presiding Officer may, in
exceptional cases and in special circumstances to be recorded in
writing, allow not more than two extensions to the defendant to file the
written statement
SHIFTING OF BANK ACCOUNTS TO ANOTHER CENTRE- PROOF OF
ADDRESS
 Branches may transfer existing accounts at the transferor
branch to the transferee branch without insisting on fresh
58/2013
proof of address and on the basis of a self-declaration from the
account holder about his/her current address, subject to
submitting proof of address within a period of six months.
PMEGP SCHEME
 PMEGP project is a MICRO ENTERPRISE with a project cost not
exceeding Rs 25 lakhs for Manufacturing units and Rs 10 lakhs
for Service units.
 Hence the following time lines (maximum) as applicable to MSE
sector:
i) Loans up to Rs 25000/- : 2 weeks
ii) Loans beyond Rs 25000/- and up to Rs 5 lakhs : 4 weeks
iii) Loans over Rs 5 lakhs and up to Rs 25 lakhs : 30 days
Targets set here below:
Scheduled Caste : 15.0 %
Scheduled Tribe : 7.5%
Women Beneficiary: 30%
Minority Community : 5%
59/2013
67/2013
INFORMATION & COMMUNICATION TECHNOLOGY (ICT) POLICY
FOR THE YEAR 2012-2013
 Working Group on Information Security, Electronic Banking
Technology, Risk Management and Cyber frauds under the
chairmanship of Sri G Gopalakrishna, Executive Director, RBI
made recommendations relating to the governance of IT,
Information Security measures to tackle cyber fraud
CANARA VEHICLE LOAN SCHEME MODIFICATION IN
DELEGATION OF POWERS
Credit Approval Committees viz., DGM-CO-CAC and GM-CO-CAC
(CACs headed by Circle Heads) are now empowered as under:
 To sanction third and subsequent vehicle loans to individuals
under Canara Vehicle Loan Scheme, even during the currency of
earlier loans, provided there are no overdues in the existing
Canara Vehicle Loan accounts.
68/2013
73/2013
 To sanction loan for more than 2 vehicles to Corporates
(without any upper ceiling on the number of vehicles) under
Line of Credit, provided there are no overdues in the existing
Canara Vehicle Loan accounts
CANARA PENSION LOAN SCHEME - INCREASE IN REPAYMENT
TENOR
 To be repaid in 60 equated monthly instalments (EMIs) if the
pensioner is below the age of 65 years
 To be repaid in 48 equated monthly instalments (EMIs) if the
pensioner is above the age of 65 years.
LIBERALISATION OF NORMS - STAFF LHV/ CAR LOAN SCHEMES
 Brand New Vehicles: 90% on-road cost of the vehicle subject to
a maximum of Rs.6 lacs.
 Used cars - the maximum quantum of loan for used car shall
74/2013
be 80% of the value as per approved valuation by the
approved qualified engineer or actual purchase
consideration/price or original invoice price whichever is least
subject to a maximum of Rs.3.50 lacs shall continue.
 The enhanced quantum of Rs.6 lacs for purchase of motor car is
also made applicable for physically handicapped officer
employees for purchase of special motor car provided they
have completed 5 years of continuous service in the Bank.
 Availment of loans for both two wheeler and passenger car
separately within the eligible amount is permitted i.e., the loan is
extended even if one loan is outstanding.
 Continuation of limits/liabilities under car loan may be
permitted at the option of the employee on the Rate of
Interest of the respective schemes viz., car loan scheme for
officers and car loan to officer and workmen employees for a
period of 5 years (60 months) from the date of cessation of
the service.
 However, the total repayment period shall be within 200
months including the extended period of 5 years as above.
CHARGES ON EXPORT BILLS FOR COLLECTION
 For each foreign currency bill sent for collection:
Rs.500/- per bill irrespective of the amount of the bill.
 For each Rupee bill sent for collection : 0.15%. Min- 550.
Max- 5500
IMPORT BILLS FOR COLLECTION
 For each foreign currency bill on which exchange
benefit accrues/ For Each Rupee Bill: Irrespective of the
currency or amount of the bill, the commission @
0.15% of the bill amount with a minimum of 1000.00
and maximum of 5000.00.
 For each clean instrument sent abroad for collection : 0.1% Minimum 50/- maximum 500/Collection of foreign currency notes other than USD, GBP &
EURO :
0.15% subject to a minimum of 100. For individuals 0.1125%
subject to a minimum of 50 and maximum of 500
82/2013
REMITTANCES – OUTWARD :
 For effecting each clean outward remittance : 500/-flat
commission
 For issue of foreign currency travellers cheques Commission :
@1.50% on the rupee equiv. of the amount of foreign currency
traveler cheques sold to the customers
TAKEOVER OF BORROWAL ACCOUNTS - MODIFICATION IN
GUIDELINES
 Shifting of accounts from other banks during last 5 years shall
not be more than one occasion and gap to last switch over
shall be a minimum of 2 years.
 The stipulation of minimum period of 2 years of existence with
other Bank prior to takeover is dispensed with for those
borrowers who have exited our Bank for the purpose of better
95/2013
pricing and who had a good relationship with our Bank.
 However, branches/ offices to ensure that while taking over
of such accounts, the financials of the borrowal accounts shall
continue to be satisfactory.
Issuance of personalized cheque book to SB customers
 To facilitate indenting of personalized cheque book by the
branches/Central Processing Centres (CPC), a web package
- Cheque Indent Processing System (CHIPS) is developed by
our Bank which can be accessed through Single Sign on.
96/2013
Income Tax- TDS on interest on Domestic term deposits - 15G/15H
should be accepted from eligible Deposit accountholders only
 Ineligible customers i.e customers whose aggregate interest
income from their Term Deposits at the Branch is more than
the Taxable Limit [i.e Rs 2,00,000/- for current FY 2012-2013.
98/2013
BALANCE SHEET AS AT 31.03.2013
 All Loans and Advances to Corporate Borrowers where aggregate
exposure of the Borrower is Rs.5.00 Crore and above is treated
as CORPORATE and remaining Advances treated as RETAIL.
 Deposits: Where the aggregate deposits per party is Rs.5.00
Crore and above, treated as CORPORATE and the remaining
Deposits treated as RETAIL
PRUDENTIAL NORMS ON INCOME RECOGNITION, ASSET
CLASSIFICATION AND PROVISIONING
90 DAYS NORMS :
Non Performing Asset shall be a loan or advance where:
1. Interest and/or instalment of principal remain overdue for a
period of more than 90 days in respect of a Term Loan
2. The account remains ‘out of order’, in respect of an
Overdraft/Cash Credit (OD/CC)
3. The bill remains overdue for a period of more than 90
days in the case of Bills Purchased and Discounted
4. In case of advance granted for agricultural purposes, interest
and/or instalment of principal remains overdue for two crop
seasons (in case of short duration crops) and for one crop
season (in case of long duration crops)
5. Any amount to be received remains overdue for a period of
more than 90 days.
6. If the interest charged during any quarter is not serviced fully
within 90 days from the end of the quarter. This is generally
applicable to term loans.
AGRICULTURAL ADVANCES:
i. A loan granted for short duration crops will be treated as
NPA, if the instalment of principal or interest thereon remains
overdue for two crop seasons.
ii. A loan granted for long duration crops will be treated as NPA,
if the instalment of principal or interest thereon remains
overdue for one crop season.
iii. For the purpose of these guidelines, “long duration” crops
iv.
v.
would be crops with crop season longer than one year and
crops which are not “long duration” crops would be treated as
“short duration” crops.
Depending upon the duration of crops, the NPA norms
would also be made applicable to all Direct Agricultural
Advances.
In respect of agricultural advances, other than direct
agricultural advances and term loans given to non
agriculturalists, identification of NPAs would be done on the
same basis as non-agricultural advances, which, at present, is
the 90 daysdelinquency
 An account where the regular / adhoc credit limits have
not been reviewed / renewed within a period of 180 days
from the due date / date of adhoc sanction, will be treated as
Non-Performing Asset. However, on review / renewal of limits,
the asset classification may be brought to performing status.
 A Non-Performing Asset where the erosion in the value of
securities is more than 50% of value as assessed by the
Bank / accepted by Reserve Bank of India previously at
the time of last inspection and where the value of securities
available is more than 10% of the outstanding liability
should be straightaway classified under doubtful category
and provisioning should be made as applicable to Doubtful
Assets.
106/2013
107/2013
TAKE OUT FINANCE:
 Under this arrangement, the institution/the bank financing
infrastructure projects will have an arrangement with any financial
institution for transferring to the latter the outstanding in respect of
such financing in their books on a predetermined basis.
 Specified Period means a period of one year from the date when
the first payment of interest or installment of principal falls due
under the terms of the restructuring package
CANCELLATION AND DESTRUCTION OF UNDELIVERED CHEQUE
BOOKS
 As a fraud prevention measure, Bank is introducing the
system of cancellation and destruction of cheque books
issued but not collected by account holder/authorized
signatory within 15 days from the date of issue including
those returned undelivered when sent by Post or approved
courier.
 By default, a reminder through SMS/E-mail shall be sent
to the account holders on the 7th day of issuance of
cheque book requesting them to collect the cheque book
within 15 days from the date of issue of cheque
book if not already collected, failing which, the cheque
book will be cancelled.
Credit Linked Capital Subsidy Scheme (CLCSS)- regarding eligibility of
Micro & Small Enterprises to claim subsidy under CLCSS for more than
109/2013
one sub sector:
 The total subsidy inclusive for all sub-sectors should be restricted
to maximum limit of Rs. 15 lakh or 15% of cost of eligible Plant &
Machinery
covered under CLCSS, whichever is less.
Delegation of Powers for sanction of Housing Loans under Commercial
Real Estate:
 If the total number of housing units is more than two, the
exposure for the third unit onwards has to be treated as
CRE (commercial real estate) exposure as the
borrower may be renting these housing units and the rental
income would be the primary source of repayment.
The Competent Authorities have delegated credit sanctioning
powers in respect of Housing Loans under CRE as under:
 Upto Rs.50 lakhs in DGM headed Circles to DGM-CO-CAC; and
 Upto Rs.100 lakhs in GM headed Circles to GM-CO-CAC.
 Where value of the loan proposals under HL-NP-CRE exceed the
above stated ceiling of Rs.50 lakhs and Rs.100 lakhs as the
case may be, such cases only are to be referred to Retail
Banking Wing for processing / sanction, duly confirming that the
proposals are within the allocated overall exposure limit permitted
to the Circle under CRE.
116/2013
UNHEDGED FOREIGN CURRENCY EXPOSURE OF CORPORATES:
STIPULATION OF ADDITIONAL INTEREST/SERVICE CHARGE
 Additional interest/service charge on un hedged foreign currency
exposure (excluding those waived by the competent authority )
shall be charged as under where natural hedge is not available
and where stipulated margin or additional collateral comfort is not
available:
 Low Risk & Normal Risk: 0.25% additional interest/charge
 Moderate Risk 0.5%, High Risk: 0.75% additional interest/charge
The additional interest/service charge shall not be applicable in the
following cases:
a. In respect of accounts where waiver of hedging is permitted on
account of availability of natural hedging.
b. Where borrower is willing to offer 10% margin or additional
collateral comfort by way of deposit exclusively to take care of
adverse movement in exchange
120/2013
IBA’s Revised Model Educational Loan scheme - Additions / modifications
in the scheme.
 Where the admission is purely based on the marks scored in
qualifying examination - IBA had advised that the banks may
fix cut-off marks (percentage) for loan eligibility. In such cases,
the following cut off point is fixed.
i. For General merit students - 60%
ii.For SC/ST students- 50%
iii.For Girl students- 50%
Grievance Redressal Mechanism for Education loans
 The Branch-in-Charge shall be the Grievance Redressal Officer
for Education Loans (GROFEL) at Branch level
 The Overseeing Executives handling Educational Loan
Scheme shall be the Grievance Redressal Officer for EL
(GROFEL) at Controlling Offices.
 The Overseeing Executives for Educational Loan Scheme at Head
Office shall be the GROFEL at Head Office.
Branches can extend Education Loan to student intending to
pursue employment oriented courses like Teacher Training course and 3
year Diploma Courses in polytechnic after completion of Tenth
Standard, provided these courses are offered by approved / recognized
college / Institutions.
 Now, Branches/RAH are permitted to consider educational
loan proposals more than the ceiling limit of Rs.10 Lacs
and Rs.20 Lacs for inland studies and studies abroad
respectively for all the courses, as per their delegated
powers.
 Educational Loans sanctioned upto Rs.10 Lakhs for inland
studies and upto Rs.20 Lakhs for studies abroad, would
fall under PRIORITY SECTOR Category.
 Such cases, where the sanctioned limit is more than the
stipulated ceiling limit for inland and studies abroad, the
entire limit shall be classified as Non Priority Education
Loans and rate of interest as applicable to Non Priority
Education Loan shall be applicable.
 In effect, the earlier guideline of treating loan amount
upto Rs.10 Lakhs as PRIORITY, stands cancelled/deleted.
121/2013
NEW RETAIL LOAN PRODUCT - “CANARA HOME LOAN PLUS”
ELIGIBILITY
a. Individuals aged between 18 and 65 years, who have
already availed Housing Loans with our Bank & run for
at least one year and having a satisfactory repayment
track record.
b. Loan account with NIL overdues.
c. Staff of our Bank are not eligible under this scheme.
PURPOSE
 To meet domestic needs/medical expenses/educational
expenses of children / dependents / unforeseen
contingencies etc. but not for speculative purposes
TYPE OF LOAN / VARIANTS (a) Overdraft; (b) Loan facility
QUANTUM OF LOAN
For salaried class:
 10 months’ gross salary subject a maximum of Rs.10.00 lakhs.
 Housing Loan and the proposed “Canara Home Loan Plus” does
not exceed 75% of the value of the property accepted at the time
of sanction of Housing Loan.
 Net Take Home Salary after instalment: 40% (can be reduced to
25% by SA)
For non-salaried class:
 50% of 3 years average gross income of the applicant subject to a
maximum of Rs.10.00 lakhs
 Annual EMI commitments including the proposed loan shall not be
more than 50% of the Annual Income as per ITR / ITAO during the
concluded Financial year.
MARGIN NIL
LTV ratio shall not be more than 75%
RATE OF INTEREST
 Base Rate + 3.75% or the rate of interest charged on the
existing housing loan account, whichever is higher.
REPAYMENT
 To be repaid in 120 EMIs or left over repayment period for
the existing Housing Loan whichever is less. However, the
entire loan shall be repaid before the borrower attains the
age of 70 years.
 If borrower has availed overdraft limit, the same shall be
tenable for one year and shall be reviewed every year and
continued till closure of Housing Loan.
PROCESSING CHARGES 0.50% of the loan amount with a Minimum of
Rs.100/- and Maximum of Rs.500/- or as advised by HO from time to time
122/2013
LOAN AGAINST PROPERTY TO INDIVIDUALS/OTHER THAN
INDIVIDUALS FOR PERSONAL/BUSINESS PURPOSES:
INTRODUCTION OF A NEW LOAN SCHEME- ‘CANARA LAP’
Purpose:
 To meet Personal or Business needs, but not for any speculative
purpose / Commercial real estate activity / Capital market activity.
Age: Minimum 18 Years and Maximum 60 Years

salaried individuals, repayable within a maximum period of 120
months.
 Demand/Term Loan / Overdraft facility for other than individuals for
business purpose.
Assessment: For salaried Individuals:
 60% of the valuation of the property
 The net take home salary shall be 40% after all the deductions
including the proposed EMI.
For other than salaried Class:
 In the case of individuals engaged in business or self-employed
persons, maximum amount of loan shall be 3 years gross annual
income.
 It shall be ensured that LTV of 60% be maintained on an
aggregated basis in respect of borrowers for business purposes.
Loan Quantum:
 60% of the market value of the property supported by valuation
report from 2 approved independent valuers (valuation which is
lower of the 2 will be reckoned for computation of limit).
 The maximum loan quantum shall not exceed 10 Crores.

40% of the fair market value of the property supported by
valuation report from 02 independent valuers (lower of the 2 will
be reckoned for computation of limit).
 The valuation report should be from an approved Panel valuer of
the Bank and shall not be older than 3 months at the time of
sanction.
Repayment:
 Working Capital : 12 Months. Renewable every year subject to
satisfactory operations and conduct. 36 months (max)
 Term Loan : 120 Months(Max)
Security:
 Equitable Mortgage of un-encumbered residential house /flat/
commercial property situated in metro/urban centres in the name
and possession of the borrower either self-occupied or vacant or
partially tenanted.
 During the tenure of the loan, valuation of the mortgaged property
shall be done once in 3 years.
Processing Charges:
 0.50% of the loan amount with a Maximum ofRs.20000/-.
 Maximum 2000/- per renewal for overdraft facility.
Prepayment Charges:
 Nil, in case prepaid from borrower's own sources.
 If the loan a/c is taken over by other Bank/FI, prepayment charges to
be levied @ 1% of outstanding liability as on the date of such take
over.
124/2013
PAYMENT OF INTEREST FOR THE INTERVENING PERIOD
IN CASE OF PREMATURE CLOSURE/ PREMATURE EXTENSION
OF DOMESTIC/NRO TERM DEPOSITS :
 No interest will be payable on Domestic/NRO
term deposits prematurely closed/prematurely extended
before completion of 7th day.
Where the overdue period does not exceed 14 days :
 If request for renewal is received after the date of maturity,
such overdue Domestic/NR term deposits shall be
renewed with effect from the date of maturity for a
minimum period of 7 days (earlier 15 days) or more as
specified by the depositor beyond the date of
presentation and interest shall be at the rate prevailing
on the date of maturity applicable for the period for which
the deposit is renewed.
b) Where the overdue period exceeds 14 days:
 If request for renewal is received after the date of
maturity, such overdue Domestic/NRO term deposits
shall be renewed with effect from the date of maturity
for a minimum period of 7 days or more as specified by the
depositor beyond the date of presentation and interest shall
be at the rate prevailing on the date of maturity or date of
renewal as applicable for the period for which the deposit
is renewed, whichever is the least.
c) Where the deposit is not renewed but encashed after the date of
maturity:
 If the overdue Domestic/NRO term deposit is not
renewed on maturity but encashed, the overdue
Domestic/NRO term deposit will be paid interest at
Savings Bank rate as applicable from time to time during
the overdue period (eg. SB interest rate from 01.03.2003
to 02.05.2011 was 3.50% and from 03.05.2011, it is
4.00%).
133/2013
SERVICE CHARGES FOR CTS 2010 STANDARD CHEQUES TO SB
ACCOUNT HOLDERS
 For a calendar year, all SB customers are entitled to 40 cheque
leaves free of charge
135/2013
IMPLEMENTATION OF NEW CENTRAL SECTOR SCHEME OF
MINISTRY OF MSME, GOVT. OF INDIA FOR REJUVENATION,
MODERNIZATION AND TECHNOLOGY UPGRADATION OF THE COIR
INDUSTRY (REMOT SCHEME OF COIR BOARD)
Cost of ceiling(Rs.1.05 lakhs in case of Spinning units and Rs.3 lakhs in
case of Tiny/household units).
143/2013
Cash Back for Debit Cardholders for Purchase Transactions
 Any usage of Canara Bank Debit Card for
purchases with the value of Rs.10,000 or more shall
earn Cash Back at the rate ofRe.0.25 for every Rs.100.
144/2013
Interest subvention for short term Crop production loans to farmers
Continuation of the Scheme 2013-14
 Subvention of 2 % p.a , from the date of disbursement/drawal till
actual date of repayment or due date whichever is earlier, subject
to a maximum period of one year, for extending short term crop
production loans upto Rs.3 lakhs at 7% p.a(i.e. Interest income to
Bank is 9% p.a whereas net rate to farmers is only 7% p.a)
 Incentive subvention to be extended at 3 % for prompt repayment
but within one year of disbursement / drawl of such loans, from the
date disbursement/drawl to the actual date of repayment (net rate
of Interest to farmers would come down to 4% p.a. in such cases)
 The subvention benefit is to be extended for post harvest loans
against Negotiable Warehouse receipts to KCCS borrowers
(Small& marginal farmers) at the same rates.
 It is to be extended to eligible post harvest loans for a period of six
months and incentive subvention is extended to such of those
loans closed promptly but within 6 months from availing the loan
Parameters for defining High Net worth Individuals:
 Average balance of Rs. 2.00 lakh and above in SB/NRE SB.
147/2013
150/2013
154/2013
 Balance of Rs. 10.00 lakh and above in Term deposit,
Domestic/NRO
 Balance of Rs.5.00 lakh and above in CA.
 Enjoying Fund based limits/term loans exceeding Rs. 30.00 lakh.
 Salary credit of Rs. 25000/- and above in a Super saving salary
A/c.
 Business contribution/opinion makers such as head of
/VIPs such as head of village/Town/City, Top
Executives of Companies etc.
Introduction of RTGS Time Varying tariff in the system :
 System collects automatically.
ADHOC CREDIT AND ADHOC OVERLIMIT FACILITIES REITERATION
OF GUIDELINES
 Adhoc facility can be permitted for a maximum period of 90 days at
a time and not more than 2 occasions in a year.
 ADHOC OVERLIMIT FACILITY is permitted to meet certain
exigencies like payment of statutory dues, executing bunched
orders, temporary mismatch in receipts payments etc., for very
short duration.
 The facility is subject to ensuring that: Maximum period permissible
: 10 days in a row or upto 15 days for broken period in a month
 Adhoc credit facility/ Adhoc overlimit shall not be permitted in
Restructured accounts
155/2013
Prudential Exposure Limit for individual non-corporate borrowers
Partnership Concern : 60.00 crores(Enhanced to 75 crores(cir 209/2013)
Limited Liability Partnership (LLP) : :75.00 crores(enhanced to 100 cr)
159/2013
Restoring Canara Vehicle Loan sanctioning powers to Branches linked to
RAHs
 Hence forth, Branches having NPA level below 4% under Canara
Vehicle Loans shall process, sanction, disburse and follow up loans
under Canara Vehicle loan scheme upto their delegated powers
(refer Circular 115/2013), though they are attached to RAH.
 In respect of branches having NPA level of 4% and above,
Circle Head may selectively permit such branches to exercise
powers for sanctioning loans under the above scheme.
 Retail Asset Hubs would continue to process, sanction, disburse
and follow up Canara Vehicle Loans beyond branch powers and for
branches (RAH attached) whose NPA level is more than 4% and
not permitted by Circle Head to sanction these loans.
 Branches which are not attached to Retail Asset Hubs will continue
to sanction loans under Canara Vehicle Loan scheme up to their
delegated powers as per existing guidelines.
160/2013
SCHEME FOR PAYMENT OF SERVICE CHARGES TO BUILDERS FOR
SOURCING HOUSING LOAN APPLICATIONS
 To pay 0.25% of the housing loan amount as service charges
(subject to a maximum of Rs.50000/-) per loan sanctioned,
provided minimum five housing loans or minimum amount
of Rs.1.50 crores sanctioned and disbursed in the project to
Builders of residential complexes having builder tie-up
arrangement with our Bank - for referring housing loan
proposals to our Bank” (Cir 391/2013: sanctioned amount
reduced to 3 housing loans with minimum amount of Rs.1.00
crore)
161/2013
SCHEME FOR PAYMENT OF SERVICE CHARGES TO AUTOMOBILE
DEALERS AND THEIR SALES EXECUTIVES FOR SOURCING CAR
LOAN APPLICATIONS
 Permission accorded for payment of service charges (referral fees)
for sourcing business under Canara Vehicle Loans (Car Loans)
@ 1% of loan amount to Car dealers and Rs.1000/- to Dealers’
sales executives for sanctioned proposals.
163/2013
Implementation of IBA’s Model Loan Scheme for Vocational Education
and Training
Repayment period: Upto Rs.50,000/- : 2 years
Above Rs.50,000/- to Rs.1.00 Lakh : 2 to 5 years
Above Rs.1.00 Lakh to Rs.1.50 Lakh : 3 to 7 years
169/2013
Scheme for financing farmers for purchase of lands for agricultural
Purposes:
Eligibility
 Only small/marginal farmers, share croppers/tenant farmers
cultivating upto 2.5 acres(irrigated)/5 acres(dry)- including existing
land holding
 Definition of Small farmers: The total land holding of the borrower
after the purchase of the land under the scheme should not exceed
2.5 acres of irrigated land or 5 acres of non irrigated land or
equivalent.
 Ceiling on Loan quantum:
20%. May be reduced to 10% by sanctioning authority on merits.
173/2013
Formation of the Joint Lending Arrangement (JLA):
 The scheme shall be applicable to all lending arrangements, with a
single borrower with aggregate credit limits (both Fund Based and
Non-Fund Based) of 150 crore and above involving more than one
Public Sector Bank.
 Borrowers having Multiple Banking Arrangement (MBA) below
150 crore may also be encouraged to come under JLA
Number of participating banks and share of each bank
1. There will be no ceiling on number of banks in a JLA, whether it is
obligatory (credit limits of 150 crore and above from more than
one bank) or voluntary (credit limits below 150 crore from more
than one bank) in nature.
2. The minimum share of the Bank shall be 10% of the aggregate
working capital limits for aggregate working capital exposure
(FB+NFB) under Rs 1000 crores.
3. In case the total working capital exposure of the borrower is Rs
1000 crores and more, minimum share under JLA shall be Rs
100 crores.
4. While a member-bank may be permitted not to take up its
enhanced/ incremental share, it cannot be permitted to leave a
JLA before expiry of at least two years from the date of its joining
the JLA.
5. An existing member-bank may be permitted to withdraw from the
JLA after two years provided other existing member-banks and/ or
a new bank is willing to take its share by joining JLA. However, the
first right of refusal will be of the JLA members.
6. In case of exit from stressed/NPA accounts, members are not
ordinarily permitted to exit from JLA. However, in exceptional
cases, exit may be allowed with the approval of all the JLA
members at a hair cut, which shall be decided by the member
banks.
Formation of Sub- Committee:
 A Sub-Committee, comprising at least two member banks having
a combined exposure of not less than 50% of the total
exposure should be formed, for deciding all matters relating to
appraisal, sharing of income and monitoring of the accounts, at the
time of initial creation/formation of the JLA.
 Issues referred to the Sub-Committee must be decided upon in
maximum 30 days (at Sub-Committee level 10 days, and at a
higher level 20 days).
 Terms and conditions for different categories of credit facilities,
except pricing, as finalized by the JLA, shall be uniformly applied by
all member-banks
Asset Classification:
 Since the counterparty for all the lenders is the same, status of
the borrower across all lenders shall have to be the same i.e., if
any account of the borrower turns NPA with any of the JLA
lenders, then, all the lenders in the JLA will treat the accounts of
the borrower as NPA.
Documentation:
 Common documentation as advised/approved by IBA shall be
adopted and hence common stamp duty will be payable. The
documentation process shall be completed within 15 days of
acceptance of sanction.
Time norms
 The Sub- Committee would make all efforts to tie up the JLA
within 90 days of taking credit decision regarding the proposal.
 For sanction of fresh/ enhanced credit facilities (including Export
Credit): Not more than 90 days from the date of applications/
proposals received together with required details / information
supported by requisite financial and operating statements by the
Lead Bank.
 Wherever branches/ offices extend entire non-fund based credit
facilities on behalf of all the member banks, only 70% of the fee
collected on such non-fund based limits is to be shared among all
the member banks (including our Bank) retaining 30% of the
commission towards service charges.
175/2013
Know Your Customer (KYC) norms for Self Help Groups- Simplification of
norms.
 KYC verification of all the members of SHGs need not be
done while opening the Savings Bank account of the
SHGs and KYC verification of all the office bearers would
suffice.
176/2013
Risk Categorisation of Customers - Deposit Accounts
 Branches are required to review the categorization of existing
accounts & update the risk profile periodically, i.e., once in 6
months as on 15th May and 15th November, every year.
179/2013
Implementation of new central sector scheme of ministry of MSME, Govt.
Of india for rejuvenation, modernization and technology upgradation of the
coir industry (remot scheme of coir board) - clarification
 Coir Board, Kochi has clarified that applications of the coir units
comprising project cost not exceeding Rs.2 lakhs in case of
Spinning units and project cost not exceeding Rs.5 lakhs in case of
Tiny units only are to be considered under the subject scheme.
Applications comprising project cost exceeding the above ceiling
shall not be considered under the subject scheme.
181/2013
CGMSE- Change in procedure for collection of fees
 Composite all in Annual Gtee Fee is applicable in place of one time
Gtee fee and annual Service fee
182/2013
Introduction of a New Term Loan Scheme for Extending Quasi Equity
(Risk Capital) Assistance to Micro, Small and Medium Enterprises.

185/2013
 Purpose:To bridge the gap in the means of finance in the
implementation of MSME projects and to meet any other bonafide
expenditure required for the growth of the business
 Nature of Facility: Term Loan.
 Eligibility:MSME who are enjoying credit facilities with us-3 years
profitable track record with 2 preceeding years satisfactory
banking credit records. LR/NR for Internal Risk Rating or
AAA/AA/A/BBB or their equivalents for ECAI rating.
 MSME who are NOT enjoying credit facilities with us- 3 years
profit track records of promoters or their concerns in same line of
activity. Satisfactory market report and OPL from existing banker.
Security
 Hypothecation of movable asset, mortgage of immovable asset
and collateral securities / CGMSE in case of sole banking.
 Creation of II charge on current and fixed asset and collateral
securities in case of consortium /MBA assistance
Quantum of loan:
 Min. Rs 25.00 lacs max. Rs 10.00 Cr subject to Sub- debt
assistance not exceeding 1/3rd of the Post-project TNW
 Repayment: 7 years including moratorium. Moratoium of principal
Max 3 Years
Introduction of New Term Loan Scheme for granting loans to Food
Processing Industries for Technology Upgradation,
Establishment and Modernization of units - under the Centrally
186/2013
Sponsored Scheme of National Mission on Food Processing (NMFP),
Ministry of Food Processing Industries, Govt. of India.
 Govt. grant under the scheme is 25% of the cost of plant and
machinery and technical civil works, subject to maximum of
Rs.50 lakhs in respect of General Areas and 33.33% of the
cost of plant and machinery and technical civil works, subject
to maximum of Rs.75 lakhs in Difficult Areas.
Introduction of New Term Loan Scheme for granting loans for Cold
Chain, Value Addition and Preservation Infrastructure (for Non
Horticultural Products)under the New Centrally Sponsored Scheme
of National Mission on Food Processing (NMFP), Ministry of Food
Processing Industries, Govt. of India during 12th Plan.
 Govt. grant under the scheme is 50% of the cost of plant and
machinery and technical civil works, subject to maximum of
Rs.10 crores in respect of General Areas and 75% of the cost
of plant and machinery and technical civil works, subject to
maximum of Rs.10 crores in Difficult Areas.
187/2013
VISA MONEY TRANSFER FAST FUNDS (VMTFF)
 A facility for Canara Bank Debit Card issued in association with
Visa International for inbound cross border money transfer facility
 Only personal remittances from overseas are allowed to
the credit of the Cardholder’s account linked to the Visa Debit
Card in India. The remitter and beneficiary should be individuals
only.
 Transaction amount limit is USD2500 per remittance and
maximum 30 transactions per calendar year are allowed for a
beneficiary. NRE accounts are not eligible under this scheme.
 Funds will be credited to the beneficiary’s account linked to Debit
Card within 30 minutes of receiving the message.
 Our bank earns incremental interchange of US$ 0.80 per
transaction.
192/2013
Implementation of OL - Annual Implementation Programme
 Correspondance: Region A to A:100%, A to B:100%, A to C: 65%
B to A and B to B : 90%, B to C : 55% , C to A or B or C: 55%
 Preparation of Bi Lingual /Tri Lingual Training Material: 100%
(A,B.C)
 Website: 100% Bilingual (all regions ie A, B, C)
 Meetings regarding OL
a. Town Official Language Implementation Committee : 2 meetings
in a year (One meeting every 6 months)
195/2013
b. Official Language Implementation Committee : 4 meetings in a
year (One meeting every quarter)
CREDIT CONVERSION FACTOR (CCF):
 The applicable CCF for financial guarantees and performance
guarantees are stipulated at 100% & 50% respectively
 Financial guarantees are considered as direct credit substitutes
and hence 100% CCF is stipulated to treat the same at par with
fund based facility.
 Performance guarantees are considered as transaction - related
contingent items and hence only 50% CCF is stipulated.
196/2013
FRAUDS RELATING TO ADVANCES OF Rs.5.00 CRORE & ABOVEADDITIONAL INFORMATION TO BE FURNISHED BY BRANCHES /
CIRCLES WHILE REPORTING FRAUDS
 Frauds (actual & suspected) are required to be reported to us
immediately on detection, (within 24 hours) in the format provided
in HO Circular 81/2009
 Branches while reporting frauds to us, involving advances of
Rs.5.00 crore and above, as per the format advised in H O Circular
81/2009, have to submit additional information as per the annexure
to this Circular.
198/2013
LIBERALISATION OF NORMS IN RESPECT OF STAFF LHV/ CAR LOAN
SCHEMES – CLARIFICATIONS
 Whether 2 cars or 2 two-wheelers are permitted within
the eligibility under respective schemes : NO.
 One Car and One Two wheeler can be purchased
with in entitlement.
200/2013
Export Credit Insurance for Banks ECIB -Whole Turnover Packing Credit
(WT PC) and Export Credit Insurance for Banks Whole Turnover Post
Shipment ECIB(WT PS)
 Time for filing of claims: with in 6 months from the date of report of
default
 Time upto which premium is payable: upto and inclusive of the
month in which the report of Default is submitted to ECGC or in
case of insolvency of the exporter (if it is earlier) upto and inclusive
of the month in which the insolvency occurred.
206/2013
MICRO FINANCE: COMPREHENSIVE POLICY GUIDELINES
 Bank to obtain 10% of the limit as collateral security by way of
Bank deposits for loans more than Rs.1 crore to NGO-mFIs/NBFCmFIs.
 Direct lending to Self Help Groups (SHGs) upto 1:4 of savings and
beyond, in cases satisfying norms.
 Housing finance to members of SHGs to maximum amount of
Rs.75000/- per member.
208/2013
PRIORITY SECTOR ADVANCES- MODIFICATION IN GUIDELINES
 Direct agriculture : Loans to farmers up to Rs.50 lakh against
pledge/ hypothecation of agricultural produce (including
warehouse receipts) for a period not exceeding 12 months,
irrespective of whether the farmers were given crop loans for
raising the produce or not.
 Indirect agriculture : Loans to corporates , partnership firms,
institutions engaged in Agriculture and Allied Activities
[dairy, fishery, animal husbandry, poultry, bee-keeping and
sericulture(up to cocoon stage)] up to Rs. 50 lakh against
pledge/ hypothecation of agricultural produce (including
warehouse receipts) for a period not exceeding 12 months,
irrespective of whether the farmers were given crop loans for
raising the produce or not.
 Other indirect agriculture loans: Loans up to Rs.5 crore per
borrower to dealers/sellers of fertilizers pesticides, seeds,
cattle feed, poultry feed, agricultural implements and other
inputs.
Micro and Small Enterprises : Service Enterprises (DirectFinance)
 Bank loans upto an aggregate limit of Rs.5 crore per unit to Micro
and Small Enterprises engaged in providing or rendering of
services and defined in terms of investment in equipment
under MSMED Act, 2006
209/2013
DELEGATION OF CREDIT SANCTIONING POWERS –MODIFICATIONS
 CGM-CAC : 75.00 crores. GM-HO-CAC : 60.00 crores. GM-COCAC : 60.00 crores.
 DGM- CAC at Circles/SME Sulabhs : 35 crores
 AGM-CAC at Circles/SME Sulabhs : 15 cr, DM-CAC at CO/SME: 5
crores
 Branches: AGM:5Crores, CM:3 cr, SM:75lakhs, Manager-Medium
Br :50L,
 Manager-Small Br:25L
214/2013
CANARA BANK RUPAY DEBIT CARD (CBRDC)-Another variant Debit
Card
 The Debit Cards have been rightly nicknamed as E-Purse.
 National Payments Corporation of India (NPCI) would function
as a hub in all electronic retail payment systems
 NPCI has the Brand Name for the electronic retail payment system
as “RuPay”.
 The name RuPay is derived from the words “Rupee” and
“Payment”.
216/2013
SPECIAL SCHEMES FOR ONE TIME SETTLEMENT OF NPA
ACCOUNTS
The Scheme covers Doubtful and Loss Assets with aggregate Book
Liability upto 10.00 lacs (as on date of NPA) outstanding for more than
one year as NPA & total limit sanctioned is not above Rs.10 Lakh.
The Scheme shall not cover Gold Loans, Housing Loans, Canara
Mortgage and Canara Rent loans.
SETTLEMENT FORMULA:
DOUBTFUL ASSETS
• For accounts with Book Liability upto 2.00 lacs as on date of NPA:
 Where realizable value of security is above 150% of the Book Liability:
Minimum of 100% of the outstanding Book Liability.
 Where realizable value of security is 100% and above but less than
150% of the Book Liability - Minimum of 80% of the outstanding Book
Liability.
 Where realizable value of security is less than 100% of the
outstanding Book Liability - Minimum of 80% of the realizable value
of security or 60% of the outstanding Book Liability whichever
higher is to be recovered.
• For accounts with liability above 2 lacs and upto 5.00 lacs as on date of
NPA:
 where realizable value of security is more than 100%of the Book
Liability - Minimum of 100% of the outstanding Book Liability.
 where realizable value of security is less than 100% of the Book
Liability - 80% of the realizable value of security or 60% of the
outstanding Book liability whichever is higher.
For accounts with liability above 5 lacs and upto 10.00 lacs as on date of
NPA:
 Where realizable value of security is more than 100%of the Book
Liability -Outstanding Book Liability + interest at base rate - 5%
simple.
 Where realizable value of security is less than 100% of Book Liability:
Minimum of 80% of the outstanding book liability or 75% of the
realizable value of security whichever higher is to be recovered
LOSS ASSETS:
 For accounts with outstanding Book Liability upto 25000/-.
Maximum possible amount to be recovered without any stipulation
for minimum amount.
 For accounts with outstanding Book Liability above 25000/- &
upto 2.00 lacs : Atleast 25% of the Book Liability as on the date of
settlement in one lump sum to be recovered.
 For accounts with outstanding Book Liability above 2 lacs and
upto 5.00 lacs : Atleast 50 % of the Book Liability to be recovered.
 For accounts with outstanding Book Liability above Rs.5.00 lacs
and upto Rs.10.00 lacs as on date of NPA: 60% of book liability.
If networth is more than 200% of the book liability, minimum book
liability as on the date of settlement is to be recovered
REPAYMENT PERIOD :
 Down payment of 10-25% to be insisted upon on the day of
settlement balace OTS amount to be recovered within 3
months from the date of communication of settlement without
interest.
Powers delegated to Branch-in-Charge for settlement of small value NPAs
under Loss Assets with Book Liability up to Rs.50000/- as on date of NPA
with sacrifice up to Rs.50,000/- for Small and Medium branches, up to
Rs.75,000/- for Large branches and up to Rs.1.00 lac for VLBs and ELBs
subject to compliance of following:
a. The original sanctioned limit/loan amount in these accounts
should not be more than 2 lacs.
b. Minimum of 30% of the Book Liability to be recovered in one lump
sum.
c. Branch-in-Charge can permit & exercise the power delegated
for a maximum number of 50 eligible Loss Assets in a financial
year. Circle heads are empowered to enhance the limit of 50
accounts in case of need
Special schemes for settlement of Education Loans with limit upto
Rs. 4.00 Lakh and Tractor Loans & other Farm Mechanisation
loans with original loan amount upto Rs. 10.00 Lakh.
217/2013
CANARABLOG :
used as news sites, journals, diaries, team sites, and more on the World
Wide Web.
219/2013
Processing charges and Upfront fee in respect of loan/advances to Micro
and Small Enterprises (Priority Sector) - Revised guidelines
 Upto Rs.5.00 lakhs : NIL
 Above Rs.5.00 lakhs: WC: Rs.150/- per lakh Min.450/- Max
7.50lakhs
 TL: Rs.150/- per lakh Min.750/- Max 7.50lakhs
220/2013
Time norms for disposal of loan applications of Micro, Small and Medium
Enterprises (Priority Sector) - Revised guidelines
 Upto Rs.25000/- : 2 weeks
 25,000/- to 5.00 lakhs: Micro&Small:2 weeks, Medium:4 weeks
 5.00 lakhs to 25.00 lakhs: Micro&Small: 4 weeks, Medium: 30,
45, 45 (Branch, CO, HO)
 Above Rs.25.00 lakhs: Micro & Small: 8 weeks. Medium:30d,
45d, 8 weeks (Br/CO/HO)
223/2013
ISSUE OF DEBIT CARDS FOR STUDENTS
 The competent authority has permitted issue of Debit cards to
students above the age of 12 years as under.
 Students above the age of 16 will be issued Debit Cards
directly and they can operate through any of our ATMs or other
Bank ATMs
 For Students who have completed the age of 12 years but less than
16 years of age, natural guardian shall open account and Debit
card will be issued in the name of minor student
 The Branches should obtain the mobile phone numbers of the
natural guardian and system of sending SMS alerts for
transactions has to be enabled which will keep the parents
informed of the transactions.
226/2013
INTRODUCTION OF ANNUAL FEE ON ATM DEBIT CARDS
 From 1st July 2013, we have decided to collect Rs 100/- as
227/2013
annual fee on all ATM Debit Cards after completion of one year
from the date of issue /renewal and thereafter to be charged
yearly.
 The above is Ex-Tax and applicable service tax and cess
thereon shall be payable additionally.
Ensuring Correct Classification of Advances Under Priority Sector
 Loans sanctioned for general purposes under General
Credit Cards (GCC) should be classified under ‘Other
Priority’.
 If the loans under GCC are sanctioned to Micro and Small
Enterprises, such loans should be classified under respective
categories of Micro and Small Enterprises
229/2013
EMPANELMENT OF LENDERS’ INDEPENDENT ENGINEERS
(LIE) GUIDELINES
 The LIEs shall submit the applications to the Circle Offices and
the applications received are to be thoroughly reviewed/
analysed by the Circles before recommending for
empanelment and submit the application with recommendations to
the Credit Policy Section, Risk Management Wing, HO, for placing
the same before the Committee of General Managers for
empanelment for approval and Empanelment.
231/2013
Introduction of Insurance Product for Educational Loans - Master Policy
from M/s. Canara HSBC Oriental Bank of Commerce Life Insurance
Company Ltd
 Age at Entry: 12 years upto maximum age of 64 years
 Term Cover: Maximum Cover Term is 15 years including
moratorium/ repayment period.
 Sum Assured: Maximum of 120% of loan amount, subject to a
maximum of Rs.50 Lakhs.
 Joint Borrower: Student and parent and/or guardian can be
covered jointly (Maximum of three borrowers).
232/2013
HOUSING LOANS - MODIFICATION OF GUIDELINES RELATING TO
MAXIMUM QUANTUM
 An uniform sanctioning powers of upto Rs.15.00 lakhs is fixed
to all Circles irrespective of Metro Circles or others for Housing
Loans sought for repairs and renovation.
 Branches / RAHs / CACs can consider Housing Loan proposals
for expansion of existing unit, upgradation and creation of
additional amenities for financing upto 75% of the project cost
upto their delegated powers (without any ceiling on quantum).
237/2013
Micro Insurance Product- Sampoorna Kavach Plan (SKP) of CANARA
HSBC OBC LIFE INSURANCE CO Ltd ( CHOICE) .
 To cover the lives of the existing Group(SHG/JLG/MCG/TFG)
members and all BSBD ( No Frill ) Account Holders of the Bank.
THE DETAILS OF THE SCHEME IN BRIEF ARE AS UNDER :
 The Sum Assured under the scheme is Rs.30000/-(Enhanced
from the earlier limit of Rs 25000/-)
 The premium payable by each member is Rs.100/- P.A.








242/2013
243/2013
250/2013
Age at entry - Minimum of 18 Yrs Maximum 59 Yrs.
Maximum cover age - 60 years ( as on last birthday).
The Scheme covers only natural death and death due to accident.
The Company will be issuing one master policy every month
including all the members enrolled during the month.
One master policy will be issued by the company every month for
a period of twelve months.
The Members will be issued a Certificate of Insurance.
It will not have any surrender value/Paid up value and it cannot be
assigned.
The policy shall be valid for one year and requires renewal
every year by paying the renewal premium.
SWARNA LOAN SCHEME - Restrictions imposed by RBI in the matter of
lending against security of specially minted gold coins sold by the Bank
 While granting loans under SWARNA LOAN SCHEME, branches
are requested to take note of the above RBI guidelines for
strict compliance and ensure the following:
 Total weight of specially minted gold coins (sold by the Banks)
should not exceed 50 grams per customer
 Total loan per customer should not exceed the maximum limit
permitted under the scheme.
SCHEME OF REWARD FOR RESISTING DACOITS/ROBBERS IN CASE
OF BANK ROBBERIES - COMPENSATION TO BANK
EMPLOYEES WHO ARE KILLEDIN BANK ROBBERIES, TERRORIST
INCIDENTS INCLUDING LEFT-WING EXTREMISM
1. In case of death of an employee as a result of or during Bank
robbery or attacks by terrorists, including left-wing extremism on
Bank employees, the family of deceased will be given
compensation by the Bank as follows:
i.In case of death of Officers : Rs.20 lakhs
ii.In case of death of Clerical/Sub-staff : Rs.10.00 lakhs
2. The Bank will look after educational expenses of the children of
the deceased upto and inclusive of graduation.
3. The Bank will give immediate employment to one member of the
family of the deceased in accordance with the guidelines of
compassionate appointment
4.
In respect of the persons other than the bank employee
who may get killed as a consequence of or during robberies
and / or attack of terrorists, the bank will pay a lump sum
compensation of Rs.3 lakhs to the family of the deceased.
CANARA VIDYA JYOTHI SCHEME - A CORPORATE SOCIAL
RESPONSIBILITY (CSR) INITIATIVE
To encourage education among girl children belonging to SC/ST
communities by extending financial support.
A.
Eligibility Criteria:
1. One Student from each of the class from 5th Standard to 10th
Standard
2. Students studying in Government School within the command
area of the Branch
3. Students from BPL family
: Rs.20 la
4. From SC/ST community
5. Should be the highest scorer in the immediate preceding class
among SC/ST girl students
B.
Amount of Assistance:
1. Rs 2500 per student per year for students of class 5th to class 7th
2. Rs 5000 per student per year for students of class 8TH to class
10TH
C.
Applicability of Scheme:
 Each rural branch of the Bank to extend financial
assistance to six girl students of their command area.
 Three students one each from class 5TH to class 7TH
will be assisted @ Rs 2500 each, another three, one each
from class 8TH to class 10TH will be assisted @ Rs 5000
each.
252/2013
 The competent authority has permitted waiver of Charges for funds
transferred by students to Educational Institutions / colleges by way
of RTGS & NEFT and/or issue of DDs for such institutions/ colleges
262/20132
263/2013
269/2013
Implementation of Central Sector Scheme of Ministry of MSME, Govt. of
India for Rejuvenation, Modernization and Technology Upgradation of the
Coir Industry(REMOT Scheme of Coir Board) - Promoter’s contribution
and release of Govt. grant - Clarification
 Promoter’s contribution is 5% of the Project cost
 Term loan of Rs.4.75 lakhs in case of Tiny unit and Rs.1.90 lakhs
in case of Spinning unit. (Project cost:5.00 lakhs for Tiny Unit,
Rs.2.00 lakhs for Spinning Unit)
Produce loan to farmers under agriculture
 Maximum Rs.50 lacs per party.
 Repayment within 12 months from the date of grant.
 Loan proceeds to be adjusted to KCC/instalment of TL.
 50 lacs is the restriction for Produce Loan to Corporates also (cir
208/2013)
 The subvention benefit is extended to eligible post harvest
loans against warehouse receipt to KCC holder Small & Marginal
Farmer borrowers, for a period of six months and incentive
subvention is extended to such of those loans closed promptly but
within 6 months from availing the loan.
 Produce stored in their own houses/godowns/Leased godowns(MaxRs.10 lakh)
 Financing against Negotiable Warehouse receipts of accredited
Warehouses/Cold storages(Rs.25 lakhs(on lent amount)
 Financing the Private Cold Storage units / Private Warehouses by
way of WC limit against the Receivables (arising from amount
advanced to farmers against stocks of Agricultural produce stored
by the farmers) (Rs.25 lakhs(on lent amount))
Credit Risk Guarantee Fund Trust for Low Income Housing(CRGFTLIH)
Scheme of National Housing Bank.
Eligibility :
 New or existing individual borrowers in Economically Weaker
Sections (EWS) / Low Income Groups (LIG) categories (the
income ceiling as defined/revised by MoHUPA) in urban areas.
 Eligible borrowers as defined above, forming a group or housing
society of at least 20 members shall also be eligible under the
scheme. Loan sanctioned prior to effective date (i.e. on or before
20.06.2012) are not covered under the Scheme.
Quantum of Loan and Project Cost :
 Maximum loan amount / Limit shall not exceed Rs. 5.00 lakh
per individual borrower.
Guarantee Cover available :
 The scheme provides guarantee of 90% of the amount in default
for the loans up to Rs. 2.00 lakhs and guarantee of 85% of the
amount in default for the loans above Rs. 2.00 lakh and up to Rs.
5.00 lakh
Guarantee Fee :
 1% of the loan amount sanctioned (to be absorbed by the Bank).
270/2013
EMPLOYEES’ HOUSING LOAN (EHL) – MODIFICATION
 The restriction stipulated on the availability of minimum residual
service is removed and all the employees, irrespective of the
residual service, may be permitted to avail EHL for house/ flat
which is under construction
272/2013
ALLEGED DELAY IN PAYMENT OF PENSIONARY BENEFITS TO EXSERVICEMEN
 Delayed credit of pension/pensionary benefits not only
paves for grouse against the bank but also attracts
payment of interest at 8%.
275/2013
SCHEME FOR FINANCING RICE MILLS/SHELLERS UNDER MICRO,
SMALL AND MEDIUM ENTERPRISES (MANUFACTURING) SECTOR.
 Scheme for financing Rice Mills/Shellers under MSME
(Manufacturing) sector for sanction of loans (OCC/ODBD and/or
Term loan) upto a maximum of Rs.25 crore with special rate of
interest linked to prevailing Base Rate and based on collateral
security comfort introduced.
 Area specific scheme.
 The scheme is valid till 31.03.2014 and renewal of the same is
subject to review.
 Applicable term premium as per prevailing guidelines to be loaded
additionally in case of term loans.
 All eligible loans granted under the scheme are to be covered
under CGMSE as per prevailing guidelines, with necessary
updation in the CBS system as per BASEL norms.
279/2013
CAR LOAN SCHEMES OF THE BANK – MODIFICATIONS
 The entire loan along with the interest should be repaid in not more
than 180 monthly instalments (120 months towards principal and 60
months towards interest).
 However, at the time of retirement(including voluntary retirement),
the loan can be continued at the option of the employee for a further
period of 5 years(60 months) subject to the conditions that the total
repayment period shall not exceed180 months or the period opted
by the officer.
282/2013
Memorandum of Understanding (MoU) between Canara Bank and The
National Small Industries Corporation (NSIC) under NSIC-Bank Credit
Facilitation Scheme.
 The Bank branches shall accept the loan applications forwarded by
NSIC and consider sanctioning loans on merits and as per lending
norms laid in the lending policy of the Bank
283/2013
286/2013
 Upon sanction of the loan, the concerned branches of the Bank
shall pay within 30 days, 50% of the processing/upfront fee
collected from the applicants to NSIC for each application so
sanctioned.
COLLECTION OF SERVICE TAX ON CERSAI FEES
 CERSAI charges on the EMTs registered in CERSAI Portal at the
following rates:
Up to a loan amount of Rs.5, 00,000/-Rs.250/- per transaction.
For loans above Rs.5, 00,000/-Rs.500/- per transaction.
 Service Tax needs to be paid on all CERSAI transactions with
effect from01/07/2012.
 Rate of service tax is 12.36%.
SECURITY AND RISK MITIGATION MEASURES FOR CARD
TRANSACTIONS
 EMV stands for Euro pay, MasterCard and VISA, a
global standard for inter-operation of integrated circuit
cards (IC cards or "chip cards") and IC card capable
point of sale (POS) terminals and automated teller
machines (ATMs), for authenticating credit and debit card
transactions.
 It is a joint effort between Euro pay, MasterCard and Visa
to ensure security and global interoperability so that Visa
and MasterCard cards can continue to be accepted
everywhere.
 With effect from 01.07.2013, our Bank will issue EMV
compliant Chip Card
 All those Debit / Credit Card holders who have used their
card for at least one for international transaction during the
previous 12 months will be issued EMV Compliant Chip
Card.
 All Debit Cards issued in association with RuPay, Visa
or MasterCard, require second factor authorisation for
usage at merchant establishments.
 In other words, the cardholder is required to key in his /
her PIN in the POSEDC machine to authorise the
transaction.
289/2013
 Domestic cards will be magnetic stripe cards with PIN capability
for merchant transactions, whereas International Cards are EMV
compliant Chip Cards
FACILITIES TO BUSINESS CORRESPONDENT AGENTS (BCAs)
UNDER FINANCIAL INCLUSION
1. Payment of conveyance allowance of Rs.500/- (Rupees
five hundred only) to BCA (irrespective of BCAs own the
vehicle/uses the vehicle)
2. Payment of Rs.300/- (Rupees three hundred only) towards
mobile recharge expenses.
3. Extending Vehicle loan facility to BCAs for purchase of two
wheeler at concessionalterms, such as: Loan: Rs.50,000/-, 15%
margin ROI: Base Rate, No income criteria Repayment: 60-84
months provided that the BCA conducts a minimum of 25
transactions per month.
291/2013
Guidelines for Empanelment of Advocates in Bank’s Panel
 Circle Head is empowered to empanel Advocate who is having
minimum 2 years of actual practice in civil/criminal side.
292/2013
Extension of service window for RTGS Transactions
Monday- to Friday:
 Customer Transactions: 09.00 hours to 16.30 hours
 Inter Bank Transactions: 09.00 hours to 18.30 hours
Saturday:
 Customer Transactions 9.00 hours to 14.00 hours
 Inter Bank Transactions: 9.00 hours to 15.00 hours
Central Sector Scheme of Interest Subsidy on Education Loans
 The loans are availed only for Inland studies (Education loan
for Abroad studies not eligible).
 Parental Income should not be more than Rs. 4,50,000/-
298/2013
303/2013
304/2013
305/2013
INTRODUCTION OF NEW SCHEME FOR PROVIDING FURNITURE /
FIXTURES TO THE OFFICERS
Eligibility: Scale I: Rs.1.00 lakh, II&III: Rs.1.75 lakhs, Scale IV: 2.25 lacs
Scale V: 3.00 lacs, Scale VI:4.25lakhs, Scale VII:4.50 lakhs
EMPANELMENT OF RECOVERY AGENTS - MODIFICATIONS IN THE
EXISTING GUIDELINES
 Deputy General Manager, who is heading Circle Office, is
delegated with the power to entrust Recovery Agent NPA
accounts under doubtful, loss and written off category
with book liability up to Rs. 25.00 Lacs per account
 General Manager, who is heading Circle Office, is delegated
with the power to entrust Recovery Agent NPA accounts
under doubtful, loss and written off category with book
liability up to Rs. 50.00 Lacs per account.
 In case Circle desires to entrust account involving book
liability of more than Rs. 25.00 Lacs or Rs. 50.00 Lacs as the
case may be, Circle has to take up with General Manager,
Recovery Wing, Head Office
“CANARA CARE HOME”
CANARA CARE HOME at Vellore and Mumbai to provide
306/2013
310/2013
311/2013
accommodation facility to our employees/dependants of our employees
visiting the above places for the purpose of medical treatment of self
or dependant
Credit Linked Capital Subsidy Scheme (CLCSS)- clarification regarding
time lines for submission of Claims
 Branches are advised to submit the eligible CLCSS claims
immediately after last disbursement but not later than 10th day of
third month of subsequent quarter (eg: for Apr -June quarter,
before 10th of Sept) to their Circle offices who in turn shall
process, consolidate and submit to TUFS Cell, HO on or before
20th day of third month of subsequent quarter
Insurance cover for Education Loan - Reimbursement of 25% premium by
Bank
Integrated housing projects comprising of some commercial space
Shopping complex, school etc.) can also be classified under
CRE-RH, provided that the commercial area in the residential
project does not exceed 10% of the total Floor Space Index (FSI)
of the project.
 The above mentioned CRE-RH segment will attract a lower risk
weight of 75% and lower standard asset provisioning of 0.75% as
against 100% and 1.00% respectively for CRE segment.
 The extant guidelines requiring additional risk weight of 25% for
restructured housing loans shall continue to remain in force
RBI has now rationalised the prudential norms on risk weight,
provisioning and LTV ratio for individual housing loans, CRE and
CRE-RH exposures as under:
Individual
Housing Loans
Upto Rs.20 lacs
20 to 75 lacs
Above 75 lacs
319/2013
324/2013
LTV Ratio
Risk Weight
Std.Asset
Provisioning
90
80
75
50
50
75
0.40
0.40
0.40
CRE-RH
NA
75
0.75
CRE
NA
100
1.00
MEMORANDUM OF UNDERSTANDING (MOU) WITH M/S CREDIT
ANALYSIS &RESEARCH LIMITED(CARE LTD.) FOR MICRO,
SMALL & MEDIUM ENTERPRISES RATINGS
CARE Ltd ratings are valid for one year from the date of assigning the
rating.
RESTRUCTURING OF ADVANCES - MODIFIED GUIDELINES
 In case of non-infrastructure projects, prescribed period of delay
in DCCO extended from six months to one year from the original
DCCO, for continuing as a standard asset, subject to conditions.
 Mere extension of DCCO would not be considered as
restructuring, if the revised DCCO falls within a period of 2
years and 1 year from the original DCCO for infrastructure
326/2013
327/2013
and non-infrastructure projects respectively.
 Promoters’ personal guarantee to be obtained in all cases of
restructuring.
 Incentive for quick implementation in non CDR cases modified
to “120 days from date of application” for restructuring.
Senior Citizens Savings Scheme, 2004 (SCSS,2004)
 Reserve Bank of India has revised payment of agency
commission on transactions relating to SCSS, 2004
Scheme, which will be claimed by the Nodal branch Government Link Cell, Nagpur on quarterly basis at the
following rates:
a) Receipts - Rs.50/- per transaction
b) Payments - 5.5 paise per Rs.100/- turnover
Master Circular - Scheme of incentives and penalties for Bank branches
including Currency Chests based on the performance in rendering
customer service to members of public
 Capital Cost: Reimbursement of 50% of capital expenditure
subject to a ceiling of Rs.50 lakh per currency chest. In the
North Eastern region upto 100% of capital expenditure is
eligible for reimbursement subject to the ceiling of Rs.50
lakh.
 Revenue cost: Reimbursement of 50% of revenue
expenditure for the first 3 years. In the North Eastern region 50%
of revenue expenditure will be reimbursed for the first 5 years.
 Exchange of soiled notes - Rs.1/- per packet for exchange of
soiled notes upto Rs.50/ Adjudication of mutilated notes - Rs.2/- per piece
 Distribution of coins over counter : Rs. 25/- per bag for
distribution of coins over counter.
Penalty Shortages in soiled note remittances and currency chest balances:
 For notes in denomination upto Rs.50 :Rs.50/- per piece in
addition to the loss
 For notes in denomination of Rs.100 & above : Equal to the
value of the denomination per piece in addition to the loss.
 Shortages of 100 pieces and above per remittance
shall be debited immediately. Penalty may be levied on
reaching a limit of 100 pieces in a cumulative manner.
 Penalty on account of detection of counterfeit notes by RBI
from soiled note remittance of banks and in currency
chest balances will henceforth be three times the notional
value of counterfeit notes
Mutilated notes detected in soiled note remittances and currency chest
balances:
 Rs.50/- per piece irrespective of the
denomination
 Mutilated notes of 100 pieces and above per remittance
shall be debited immediately. Penalty may be levied on
reaching a limit of 100 pieces in a cumulative manner.
Non-compliance with operational guidelines by currency chests
detected by RBI officials like Non-functioning of CCTV etc:
 Penalty of Rs.5000 for each irregularity. Penalty will be enhanced
330/2013
332/2013
341/2013
344/2013
357/2013
366/2013
to Rs.10,000/- in case of repetition.
Violation of any term of agreement with RBI (for opening and
maintaining currency chests) or deficiency in service in providing
exchange facilities, as detected by RBI officials e.g..a) Non issue of
coins over the counter to any member of public despite having stock. b)
Refusal by any bank branch to exchange soiled notes / refusal by any
currency chest branch to adjudicate mutilated notes tendered by
any member of public
 Rs.10,000/- for
any violation of agreement or deficiency of
service.
 Rs.5 lakh in case there are more than 5 instances of violation of
agreement/deficiency in service by the branch.
 The levy of such penalty will be placed in public
domain. Penalty will be levied immediately.
Detection and Reporting of Counterfeit Notes
Compensations and Penalties
 Filing of FIR on detection of Forged / Counterfeit Notes above 4
pieces in a single transaction is mandatory
 Compensate the Banks 25% of the loss incurred in respect of
counterfeit notes of Rs.100 and above detected by them and
reported to RBI / Police Authorities w.e.f. 1st July 2013.
CANARA TRADE SCHEME- MODIFICATIONS
 Maximum eligible loan/limit under the scheme increased to Rs.10
crores
 Adhoc limit can be permitted up to 20% of the sanctioned limits.
 Increase in repayment period of term loans under the scheme to
seven years.
Activity based fee to Business Facilitators (BFs) - Change in policy
guidelines
 Bank has revised the charges payable to BFs for various activities
and the details are furnished here below:
 Savings Bank Account opening : Rs. 20 per account
 RD/FD account opening : Rs. 5 per account
 Overdraft/Retail Loans/KCC/GCC(Fresh loans only) 0.5% of
loan min.50/- max.2500/ For formation of SHG & Credit linkage: Not exceeding Rs. 1,000/per SHG/ JLG formed and credit linked with the Bank
Increasing Exposure under Retail Trade Sector
Retail Trade Advances up to Rs 5 Crores are to be classified under
Priority Sector- Micro & Small Enterprises.
INCENTIVES TO BUSINESS CORRESPONDENT AGENTS AND
OTHERS FOR SECURING SWAVALAMBAN ACCOUNTS UNDER
NATIONAL PENSION SYSTEM (NPS)
 For promoting Swavalamban Scheme, the Competent Authority
has permitted to engage the services of Business Correspondent
Agents and others for securing more number of Swavalamban
accounts and to pay incentives @ Rs. 20 per eligible account to
these agencies who are instrumental in securing the accounts.
Kisan RuPay debit cards to KCCS loans - Linking and Delivery of Cards
 At present, per day transaction limit at POS Merchant
Establishment is Rs.20000/-.
375/2013
SERVICE TAX EXEMPTION TO SEZ UNITS OR DEVELOPERS OF SEZCHANGE
 As per the new procedure, w.e.f. 01.07.2013, the SEZ Unit or the
Developer of SEZ should furnish Form A-2 copy (new format
furnished in Annexure), duly signed by the Jurisdictional Deputy
Commissioner of Central Excise or Assistant commissioner of
Central Excise, for availing upfront Service Tax exemption.
376/2013
Priority Sector Lending - Restructuring of SGSY as National Rural
Livelihood Mission (NRLM) – AAJEEVIKA
 NRLM is the flagship program of Govt. of India for promoting
poverty reduction through building strong institutions of the poor,
particularly women, and enabling these institutions to access a
range of financial services and livelihoods services.
 NRLM focuses on building, nurturing and strengthening the
institutions of the poor women, including the SHGs and their
Federations at village and higher levels
 Women SHGs under NRLM consist of 10-15 persons. In case of
special SHGs i.e. groups in the difficult areas, groups with
disabled persons, and groups formed in remote tribal areas, this
number may be a minimum of 5 persons.
 NRLM would provide a Revolving Fund (RF) support to SHGs in
existence for a minimum period of 3/6 months : RF Min.10,000/and max.15000/ NRLM has a provision for interest subvention, to cover the
difference between the Lending Rate of the banks and 7%, on
all credit from the banks / financial institutions availed by
women SHGs, for a maximum of Rs.3,00,000 per SHG
 The SHGs will also get additional interest subvention of 3% on
prompt payment, reducing the effective rate of interest to 4%.
Loan amount
 First dose: 4-8 times to the proposed corpus during the year or
Rs.50, 000 whichever is higher.
 Second dose: 5-10 times of existing corpus and proposed saving
during the next twelve months or Rs.1 lakhs, whichever is higher.
 Third dose: Minimum of Rs.2 lakhs, based on the Micro credit plan
prepared by the SHGs and appraised by the Federations / Support
agency and the previous credit history
 Fourth dose onwards: Loan amount can be between Rs.5-10
lakhs for fourth dose and / or higher in subsequent doses. The loan
amount will be based on the Micro Credit Plans of the SHGs and
their members.
 No collateral and no margin will be charged upto Rs.10.00 lakhs
limit to the SHGs
Repayment schedule could be as follows
 The first dose of loan will be repaid in 6-12 instalments
 Second dose of loan will be repaid in 12-24 months.
 Third dose will be sanctioned based on the micro credit plans, the
repayment has to be either monthly / quarterly / half yearly based
on the cash flow and it has to be between 2 to 5 Years.
 Fourth dose onwards: repayment has to be either monthly /
quarterly / half yearly based on the cash flow and it has to be
between 3 to 6 Years
377/2013
DOCTOR'S CHOICE SCHEME - REVISED GUIDELINES
 Max - 5 crores With Sub-ceiling of Rs.50 lakhs for working capital
 WC will be least of : 20% of max. limit max 50 lacs
 MARGIN Up to 25000
NIL
 Above 25000: TL for construction-25%; equipment-20%; WC- 20%
REPAYMENT:
- OD/OCC-tenability-2 yrs
- Max 24-35 mths monthly EMI
- 5 - 7yrs monthly EMI
-3-6 mths(construction max 12 mths)
Processing Charge
Upto 5 lac-Nil;
> 5 lac- Rs 100 per lac min 500/Upfront fee : Up to 5 lacs-nil , Above 5 lac - 75% of normal charges, i.e
0.75%of loan amt; min-3750/; max-3.75 lac
Concession in ROI- women-0.50%, CGMSE-0.25%
379/2013
Relief measures in areas affected by natural calamities -Reiteration of
Guidelines
 Loans to existing borrowers for general consumption purposes may
be sanctioned up to Rs 10000/- without any collateral. The limit
may, however be enhanced beyond Rs.10,000/- at the discretion of
the bank.
380/2013
INTRODUCTION OF A NEW LOAN SCHEME “CANARA MSE PRAGATI”
FOR FINANCING MICRO AND SMALL ENTERPRISES (MSE)”
As per the Government/Reserve Bank of India directives, following are to
be complied with:
 Annual growth in number of accounts in respect of Micro
Enterprises : 10%
 Annual growth in quantum of advances in respect of Micro and
Small Enterprises:20%
 Share of Micro Enterprises under Micro and Small Enterprises
outstanding as under:60%
To facilitate the credit requirements of the Micro and Small Enterprises
upto Rs.10 lakhs without collateral security and/or third party guarantee
and with coverage under Credit Guarantee Fund Scheme for Micro and
Small Enterprises (CGMSE)
 Target Group- MSE except traders, educational institutions, Self Help
Groups & JLGs.
 Working capital (Overdraft/Open Cash Credit), short term loans
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381/2013
and/or term loans may be granted under the scheme depending
on the need, with NIL margin upto Rs.25000/- and 15% margin for
loans above Rs.25000/-.
Quantun- Upto Rs.10 Lakh.
Rate of interest on term loans and working capital limits shall be
Base Rate+0.55%. 0.25% interest concession for CGMSE covered
account, not available.
Processing charges/upfront fee shall be 50% of the normal
charges.Upto Rs.5 Lakhs Nil.
Entire Annual guarantee fee (AGF) payable to Credit Guarantee
Fund Trust for Micro and Small Enterprises (CGTMSE) shall be
absorbed by the Bank.
Tenability of working capital (Overdraft/Open Cash Credit) shall be
3 years subject to Annual Review.(Format As per Cir 539/2013)
Stock Statement- Upto Rs.2 lakh- Nil. Other Cases Quarterly
simplified in NF585, detailed stock statement, annually in March very
year.
Repayment period maximum of 7 years inclusive of holiday period
Every Friday to be observed as MSE Pragati Day.
INTRODUCTION OF A NEW LOAN SCHEME “CANARA MSE UNNATI”
FOR FINANCING MICRO & SMALL ENTERPRISES (MSE)”
With a view to facilitate the credit requirement of the Micro and Small
Enterprises whose credit requirement is above Rs.10 lakhs and upto
Rs.100 lakhs without collateral security and/or third party guarantee and
with coverage under Credit Guarantee Fund Scheme for Micro and
Small Enterprises (CGMSE), the subject scheme is introduced as
permitted by the Board of Directors.
 Target Group- MSE except traders, educational institutions, Self
Help Groups & JLGs.
 Under the scheme, working capital (OD/OCC), short term loans
and/or term loans of above Rs.10 lakhs to Rs.100 lakhs may be
granted depending on the need and at 20% margin on stocks/book
debts/fixed assets.
 Rate of interest on term loans and working capital limits shall be
Base Rate+1.25% (presently, 11.45% p.a.) and subject to
changes from time to time. Interest concession of
0.50%(WE)/0.25%(CGMSE) can be extended subject to ultimate
rate not falling below prevailing Base Rate.
 25% concession in processing charges and upfront fee is available.
 Stock Statement- Quarterly simplified in NF585, detailed stock
statement, annually in March very year.
 Tenability of working capital limits shall be 24 months subject to
Annual Review. (Format As per Cir 539/2013)
 Repayment period maximum of 7 years inclusive of holiday period
 Non fund based limits can also be considered
 Units whose risk rating is upto Moderate risk are eligible
 Scoring norms is not the deciding factor for eligibility criteria.
382/2013
Implementation of e-payment of Taxes (TDS @ 1%) on sale of
Immovable property, at all our Branches
 As per the Finance Bill of 2013, TDS @1% of sale consideration is
applicable on sale of immovable property (other than rural
agricultural land) wherein the sale consideration of the
immovable property is Rs 50, 00,000 (Rupees Fifty Lakhs) or more.
386/2013
388/2013
Scheme for Reimbursement of Conveyance Expenses incurred by award
staff in discharge of their official duties.
 Petrol Limit: Spl. Asst:13 litres, Clerks:10 litres, Substaff:7 litres
 Consolidated Amount (if not owning vehicle): Rs.500/400/300
Priority Sector Lending- Targets and classification of Bank loans to MFIs
for onlending- Amendment in income generation criteria.
Bank credit to MFIs for on lending will be eligible for categorization as prior
advance if aggregate amount of loan extended for income generating a not
less than 70% of the total loan MFIs
391/2013
394/2013
399/2013
MODIFICATIONS IN RETAIL LOAN SCHEMES: CANARA VEHICLE
SCHEME:
 Loan under this scheme can be considered for purchase of second
hand / used vehicles also which are not older than 5 years. In
such cases, the minimum margin will be 25% and Maximum
quantum of Loan is Rs.15.00 lacs (after maintaining a minimum
margin of 25%)
Scheme for payment of service charges to Builders for sourcing Housing
Loan applications
 The details of the scheme for payment of service charges to
builders is as under:
“To pay 0.25% of the housing loan amoun as service charges
(subject to a maximum of Rs.50000/-) per loan sanctioned,
provided minimum three housing loans or minimum amount of
Rs.1.00 crores.
CREDIT APPROVAL COMMITTEE (CAC) – MODIFICATION
 Henceforth, there would be only 3-tier CAC at Head Office level
viz., CAC of the Board, ED-CAC and CGM-CAC and all the
proposals beyond the Circle level shall be placed to CGM-CAC and
above authorities for decision.
DELEGATION OF POWERS – MODIFICATIONS
 As per the extant guidelines, obtention of CGTMSE cover is
mandatory for loans/ advances above Rs.10 lacs and upto
Rs.100 lacs unless the borrower provides Primary security or
primary and collateral security put together in the form of land
and building to the extent of 100% of the sanctioned limit, in
addition to the security of assets created out of our finance
(exposure, if more than one limits are sanctioned).
The borrower shall be rated as low, normal or moderate risk based
on the latest balance sheet available
 PCB Head can permit Opening of further LCs to the extent of
clearance of devolved liability subject to reporting to HO.
 The sanctioning powers of Micro Finance Branch (specialised
branch for micro credit) is enhanced to Rs.50000/- per member
in respect of clean loans for MCG/ SHG advances.
408/2013
BRINGING PARITY IN CASH HANDLING CHARGES FOR BASE
BRANCH AND NON BASE BRANCH FOR CASH REMITTANCE IN
CA/OD/OCC ACCOUNTS
 In order to bring in parity, cash handling charges of Rs.1/- per
Rs.1000/- remitted in base branch above Rs.1 Lakh for
CA/OD/OCC accounts shall apply for remittance in non base
branch also.
409/2013
Extending IOD facility upto Rs.10,000/- to all BSBD account holders,
which was hitherto restricted to BSBD account holders in FI Villages.
411/2013
In view of the RBI directive, it has been decided to waive the
charges for withdrawals (max limit: Rs.50,000/-) made in non base
branch irrespective of intracity and inter city.
413/2013
Donations through Alternate Delivery Channels
Minimum and maximum limits fixed on remittance of donation are as given
below:
1. Donation through Net Banking: Minimum of Rs. 1/- to Maximum
of Rs.50,000/2. Donations through ATM: Minimum of Rs. 100/- to Maximum of
Rs. 50,000/3. Donation through Mobile Banking: Minimum of Rs. 1/- to
Maximum of Rs.50,000/-
418/2013
Delegation of Powers for Payment of Professional Fees for engaging
Advocates in cases filed by/against Bank
 DRT Matters: Circles are permitted to pay professional fees at 1%
of the Claim amount with a minimum of Rs.12,500 and a maximum
of Rs.50,000 to Advocates who are appearing before DRTs in
Metro Cities of Delhi, Mumbai, Chennai, Kolkata and Bangalore
421/2013
 The maximum amount of professional fees payable to the
Advocates by Circles have been enhanced to Rs.30,000/irrespective of the fee schedule prevailing as per the Civil Rules of
Practice for that particular region (other than Metro Cities of Delhi,
Mumbai, Chennai, Kolkata and Bangalore).
 MaximumPowers: CGM CAC:Beyond 1.5lacs to 5 lacs
 ED CAC:beyond 5 lacs to 10 lacs. CAC of Board: Beyond 10
lacs
OD-MSME SCHEME FOR MICRO, SMALL AND MEDIUM
ENTERPRISES (MANUFACTURING) - NEED FOR INCREASING
EXPOSURE UNDER THE SCHEME
422/2013
429/2013
430/2013
431/2013
STANDARDISATION AND MAINTENANCE OF ATM LOBBY MONITORING BY CIRCLES
 The size of ATM lobby should be around 80 sq ft (10‟X8ft) with
a clear height of 10ft.
 On normal days cash loaded in the ATM should not exceed
110% of the average cash withdrawals per day in the particular
ATM.
 On week end and holidays Cash loaded in the ATM should not
exceed 200% of the average cash withdrawals per day
BALANCE INQUIRY THROUGH MISSED CALL
 By simply giving a missed call from their mobile number
registered with the Bank to “ 092892 92892 ”.
Introduction of service charge for SMS services
 SMS charges
- Rs.15.00 per quarter
SMS based IRCTC (Indian Railway Catering and Tourism Corporation)
ticket booking through IMPS facility provided by M/s NPCI(National
Payment Corporation of India).
Charges for the above service are as shown below:
 SMS Charges: Rs.3/-per SMS as applicable by Mobile Service
provider.
 Payment Gateway Charges: Rs 5/- for ticket amount less than
Rs 5000 and Rs 10/- for ticket amount greater than or equal to
Rs 5000/-.
 Ticket amount and charges will be debited to the account online
433/2013
434/2013
RUPEE EXPORT CREDIT - INTEREST SUBVENTION GOVERNMENT OF INDIA HAS INCREASED THE RATE OF
INTEREST SUBVENTION ON THE EXISTING SECTORS FROM THE
PRESENT 2% TO 3% WITH EFFECT FROM 01.08.2013.
INTRODUCTION OF “SPECIAL VEHICLE LOAN” SCHEME FOR
PURCHASE OF BRAND NEW TWO-WHEELER BY EMPLOYEES OF
THE BANK DURING THE PROBATIONARY PERIOD
For purchase of brand new two-wheeler by employees of the bank during
theprobationary period
 Quantum of the loan Rs.60,000/- or 90% of the cost of the vehicle
whichever is less
 Rate of interest at on-going base rate
 Repayment period fixed at 84 EMIs.
 Probationary Officers on confirmation in the services of Bank, may
opt for conversion of loan under this scheme to staff LHV scheme.
Similarly, probationary clerks on reaching Basic Pay of Rs.8400/may opt for conversion of the loan to staff LHV scheme.
 On conversion of the loan, the instalment can be recasted so as to
adjust the loan to be repaid in remaining intalments in the ratio
5:2.
435/2013
INTRODUCTION OF SYSTEM OF PRE-RELEASE (PREDISBURSEMENT) AUDIT
In order to strengthen pre-disbursement monitoring of compliance to
sanction terms and conditions, obtention of stipulated collateral
securities ensuring perfection of securities before disbursement etc,
Pre-release Audit System is now introduced.
 All types of credit facilities sanctioned with credit limit of 5 crore &
above to new as well as existing borrowers are eligible
 All renewals with enhancement are eligible
 Pre-release audit shall be conducted within48 hours from
obtention of documentation
 Pre-release audit shall be conducted by scale-III or scale-IV authorities
 No authority is empowered to permit waiver of pre-release audit
 Compliance of pre-release audit observations shall be verified
during the credit audit
437/2013
439/2013
441/2013
442/2013
445/2013
SECURITY NORMS FOR AGRICULTURAL LOANSModification in Security Norms in respect of revised KCC Scheme:
 Hypothecation of crops : Loans upto Rs.1.50 lakh
 Mortgage of Lands: Loans above Rs.1.50 lakhs
 However for loans above Rs.1 lakh, charge has to be created on
lands wherever provision for charge creation is available
(online/Manual)
DD drawing arrangement permitted to our Regional Rural Banks (RRBs)
on our designated branches/Offices - Extending facilities to erstwhile
North Malabar Gramin Bank branches of Kerala Gramin Bank
CHIEF CUSTOMER SERVICE OFFICER (Internal Banking Ombudsman)
 As per the recommendations of the Damodaran Committee on
Customer Service our Bank has appointed the Chief Customer
Service Officer (CCSO), on contract basis who shall function as
an Internal Ombudsman.
 The internal Ombudsman is retired Chief General Manager from
other Bank
 A Person aggrieved with a banking service as hitherto, will first
complain to the bank and if within a month does not receive a
reply or is unsatisfied with the reply, will appeal to CCSO of the
bank.
 The CCSO would resolve the grievance within 30 days of the
receipt of complaint including the period required for conciliation
meeting etc.
 On failure to receive a reply within a month from the CCSO
or if unsatisfied with the reply of CCSO, the complainant can
appeal to the Banking Ombudsman of the relevant jurisdiction
Decentralization of Sanctioning Powers for Canara Credit Card limits
INTRODUCTION OF CORPORATE LOAN SCHEME
 Loans can be considered for any genuine funding purpose in line
with the business activity of a customer
 Existing customers of the Bank having credit exposure (FB) of not
less than 40.00 crores.
 New customers with fund based credit exposure by other banks/FIs
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447/2013
of not less than 50.00 crores and are classified as Standard Assets
with existing bankers.
The loan will be in the form of Secured Medium Term Loan.
Need based finance based on the cash flow on single
transaction basis and minimum amount of loan shall be 10.00
crores.
The maximum tenor of the loan granted under the scheme shall be
60 months. The loan shall be permitted to only the borrowers
having good repayment track history and there shall not be any
overdue.
The loans can be availed within a maximum period of 3 months
from the date of sanction and in not more than 3 tranches.
CAC of the Board and above committee shall be delegated to
sanction these loans.
HOUSING LOAN UNDER PRIORITY SECTOR
 Housing Loans to individuals -Rs 25.00Lakhs-in Metropolitan
centers (>10Lakh population) & Rs 15 Lakhs-in other areas.
 Loan for repairs to damaged houses-Rs 2 Lakhs (Rural/Semi
Urban Areas) and Rs 5 Lakhs(Urban/Metro Areas)
 Bank loans to any governmental agency for construction of
dwelling units or for slum clearance and rehabilitation of slum
dwellers subject to a ceiling of Rs.10 lakh per dwelling unit.
 The loans sanctioned by banks for housing projects exclusively
for the purpose of construction of houses only to economically
weaker sections and low income groups, the total cost of which
do not exceed Rs.10 lakh per dwelling unit. For the purpose of
identifying the economically weaker sections and low income
groups, the family income limit of Rs.1,20,000 per annum,
irrespective of the location, is prescribed
 Bank loans to Housing Finance Companies (HFCs), approved by
NHB for their refinance, for on-lending for the purpose of purchase
/ construction / reconstruction of individual dwelling units or
for slum clearance and rehabilitation of slum dwellers, subject
to an aggregate loan limit of Rs.10 lakh per borrower, provided
the all inclusive interest rate charged to the ultimate borrower is
not exceeding lowest lending rate of the lending bank for housing
loans plus two percent per annum.
Ministry of Housing and Urban Poverty Alleviation (MoHUPA) has
advised the revised income ceiling for definition of Economically
Weaker Sections(EWS) and Low Income Groups(LIG) as under;
 For Economically Weaker Sections(EWS):-Rs 100000/- as
household income per annum
 For Low Income Groups(LIG):- Rs 100000/- to 200000/- as
household income per annum
INDIRA AWAS YOJANA
 It is a Centrally Sponsored Scheme funded on cost-sharing basis
between the Government of India and the State Governments
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in the ratio of 75:25.
In the case of North-Eastern States and Sikkim, funding will be
shared between the Government of India and these States in
the ratio of 90:10 respectively.
In the case of Union Territories, the entire funds under this Scheme
are provided by the Government of India.
Target: BPL Families
Loan for IAY beneficiaries :
In addition to the assistance provided under the IAY, an IAY
beneficiary can avail himself of a loan of upto Rs.20,000/per housing unit under differential rate of interest (DRI) scheme
at an interest rate of 4% per annum
 At least 60% of the total IAY funds and physical target
should be utilized for construction/up gradation of dwelling
units for SC/ST BPL households
 A maximum 40% for non-SC/ST BPL rural households.
 3% of the above categories are for physically and mentally
challenged persons
GOLDEN JUBILEE RURAL HOUSING FINANCE SCHEME(GJRHFS):
 The cost of the dwelling unit may not exceed Rs 20 lakh
 Quantum of bank loan for individual (maximum) For new houses
Rs. 15 lakh
 For repairs/renovation Rs. 5 lakh
To encourage finance to Housing Sector in urban areas,
MoHUPA has evolved a scheme CREDIT RISK GUARANTEE
FUND TRUST FOR LOW INCOME HOUSING SCHEME
(CRGFTLIHS), operated by M/s NHB.
 The Scheme supports Collateral free/ Third Party Guarantee
free individual Housing loans up to Rs 5.00 lakhs extended
by eligible Banks for Economically Weaker Sections and
Low income Housing in urban areas
 Economically Weaker Sections-Households with annual income
up to Rs 100000/-.
 Lower Income Group-Households with annual Income
between Rs 100001/- to Rs 200000/- or as fixed by the
Ministry of Housing & Urban Poverty Alleviation (MoHUPA),
Government of India, from time to time.
 Extent of Guarantee cover- Loan Amount Up to Rs 2.00 lakhs : 90% of the amount in default subject to the ceiling of 90% of
the sanctioned Loan amount.
 Loan Amount above Rs 2.00 Lakhs up to Rs 5.00 lakhs : 85% of
the amount in default subject to the ceiling of 85% of the
sanctioned loan amount.
 Tenure: Agreed tenure with maximum of 25 years.
 Guarantee fee: 1% of agreed amount
NHB has set up Rural Housing fund, wherein Bank can claim refinance
in respect of loans sanctioned to eligible category of borrowers
 Eligible Loans: Individual Housing Loans up to Rs 15.00 lakhs
given in rural areas(having population up to 50000 as per 1991
census), to persons belonging to the “Weaker sections”
 Top up Loans under the Indira Awas Yojana (IAY) would also be
eligible for refinance under the scheme subject to fulfillment of the
following criteria:
Top up loan up to a limit of Rs 20000 per beneficiary disbursed in
addition to grant prescribed under (IAY)
448/2013
IBA‘s Revised Model Educational Loan scheme - Clarifications on
issues related to Operational Guidelines
 Loans to Employed Persons: Employed persons whose annual
income is less than Rs.7,200/- may be financed depending
upon individual requirement and merits. For those whose
annual income is more than Rs.7,200/-, loans can be granted
provided they do not get salary during the period of study.
 In case of employed persons, loans may be given individually.
However, guarantee of third party for loan upto Rs.25,000/- and
approved securities for loans above Rs.25,000/- should be
obtained.
449/2013
450/2013
456/2013
Interest Subsidy for Housing the Urban Poor (ISHUP)
 The Scheme provides interest subsidy of 5% per annum on
eligible housing loans upto Rs.1 Lakh for whole duration of the
loan (15-20 years) on NPV and upfront basis under the
Scheme.
GUIDELINES FOR PURCHASE AND SALE OF NON BANKING ASSETS
UNDER THE PROVISIONS OF SARFAESI ACT.
 As per the amended provision of Sec 13(5A), bank can
participate in auction and purchase the property. While
participating in the auction the following guidelines should be
strictly adhered to:
1. The Authorised Officer should have taken actual physical
possession of the property which is proposed to be purchased.
2. The auction of the property under SARFAESI Act should have
been postponed at least once for want of bidders.
3. Section 9 of the Banking Regulation Act (no banking company
shall hold any immovable property howsoever acquired,
except such as is required for its own use, for any period
exceeding seven years from the acquisition thereof or any
extension of such period as given by RBI
Foreign students studying in India - KYC procedure for opening bank
accounts
 Branches may open a Non Resident Ordinary (NRO) bank
465/2013
469/2013
account of a foreign student on the basis of his/her passport (with
appropriate visa & immigration endorsement) which contains the
proof of identity and address in the home country along with a
photograph and a letter offering admission from the educational
institution
 Within a period of 30 days of opening the account, the foreign
student should submit to the branch where the account is
opened, a valid address proof giving local address, in the form
of a rent agreement or a letter from the educational institution
as a proof of living in a facility provided by the educational
institution
 During the 30 days period, the account should be operated with a
condition of allowing foreign remittances not exceeding USD
1,000 into the account and a cap of monthly withdrawal to Rs.
50,000/-, pending verification of address.
COUNTER OFFER POLICY OF THE BANK FOR ONE TIME
SETTLEMENT (OTS)
 Counter Offer is to be given where the borrowers/guarantors
have given offer for OTS in writing which is not acceptable to the
bank or where there is direction from the Court/Tribunal to give the
offer of the bank
MASTER POLICY ON CREDIT RISK MANAGEMENT
BRANCHES OVERSEAS
 Thrust Areas: Agriculture, MSME, Export segment, Other
Priority,Manufacturing Sector, Service Sector etc. Non-Thrust
Areas: Commercial Real Estate, NBFCs, Capital Market & Industries
which do not have growth potentials.
 Prudential exposure limit to a single borrower: 15% of bank‘s
capital funds for Low Risk & Normal Risk customers, and 5%
additional exposure for infrastructure projects. (RBI has enhanced
this limit to 25% for Oil Companies with 5% leverage to go beyond
25% in case of need.)
 For Moderate Risk Borrowers: 12% of capital funds (additional 3%
for infrastructure projects) and for High Risk Borrowers: 8% of
capital funds with 2% extra for infrastructure.
 For group accounts, as prescribed by RBI.(regulatory limits ie 40%
of capital funds. For Infrastructure lending, it can be 50% of capital
funds.
 Board can permit 5% extra limits, with in regulatory limits.
 The ceilings on single / group exposure limit would not be
applicable where principal and interest are fully guaranteed
by the Government of India.(Cir 469/2013)
 Consortium Financing: No ceiling on number of banks but each
bank‘s share should be atleast 10% of total Fund Based limits. Can
be reduced selectively.
 Joint Lending Arrangement: The scheme shall be
applicable to lending arrangements with a single borrower with
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aggregate credit limits (both FB & NFB) of Rs.150 crore and
above involving more than one public sector bank(Cir
173/2013)
Prudential exposure limit for individual non corporate
borrowers, which can be permitted by concerned sanctioning
authorities :
o Individuals : Rs.10 crores,
o Proprietorship : Rs.50 crores
o Association/HUF- Rs.50 crores,
o Trust/Society- Rs.75 Cr
o Partnership concerns: Rs.75 crores, LLP concerns: Rs.100
crores. (209/2013)
o Prudential exposure ceiling (solo as well as consolidated fund
based and non-fund based) Rs.100 crore in respect of single
entity with constitution as Trust/ Society for Educational
Institutions and Hospitals(Cir 172/2010)
o Substantial Exposure Limits : 600% or 800% of capital
funds as on 31st March of previous year depending upon
degree of concentration risk bank is exposed to. (For
substantial exposure, the threshold limit is arrived at 10% of
capital funds)
o Exposure to Real Estate : 20% of Gross Credit and to
Commercial real estate sector should not exceed 5% of Gross
Credit.
Project Parameters for Real Estate: DER not more than 3:1,
Promoters‘ contribution: Not less than 25% + 25% advance money.
(margin 40% only if land is purchased from Govt.) FACR 2:1 and
above for Term Loans, Repayment 7 to 10 years including
moratorium period.
Canara Rent and Canara Mortgage comes under Commercial Real
Estate Sector.
Exposure to NBFCs: In terms of RBI guidelines the exposure
(both lending and investment, including off balance sheet exposures)
to a single NBFC/NBFC-AFC/IFC (Asset Financing Companies/
Infrastructure Finance Companies) is fixed not to exceed 10% /
15% respectively, of the Bank's capital funds as per the last audited
balance sheet. However, Bank can assume exposures on a single
NBFC/ NBFC- AFC/IFC up to 15%/20% respectively and 12.5% in
respect of NBFCs pre-dominantly engaged in lending against
collateral security of gold jewellery, of their capital funds provided
the exposure in excess of 10%/15%/12.5% (7.5% in respect of NBFCs
is predominantly engaged in lending against collateral of
Gold jewellery) respectively, is on account of funds on-lent by the
NBFC/ NBFC-AFC/IFC to the infrastructure sector.(Cir 469/2013)
Reserve Bank of India has advised that a new category of NBFC
viz., Non-Banking Finance Company Factors‟ has been
introduced and the Principal Business‟ of said NBFC -Factor shall
ensure that its financial assets inthe factoring business constitute
at least 75 per cent of its total assets and its income derived
from factoring business is not less than 75 per cent of its gross
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(Cir 376/2012)
Financing Producers of Feature Films: Bank Finance Maximum:
35%, Margin :25%, advance from distributors: 40%.
Borrowers (Corporates and other constituents) having sales
turnover of over Rs.50 crores shall disclose ―Ageing Schedule‖ of
their overdue payables in their periodical returns/statements submitted
to the Bank.
Loans to individuals against shares - Maximum Rs.20 lakhs for
Demat shares and Rs.10 lakh for physical form shares, from entire
banking system
Margin on shares: 50% (can be reduced to 25% if shares are in
demat form)
For subscribing to IPOs, maximum quantum is Rs.10 lakhs only.
Under ESOP scheme, finance upto 90% of the purchase price with
maximum Rs.20lakhs. (If the borrower is having another loan
against shares, total quantum including ESOP should not exceed
Rs.20 lakhs).
As per Section 19 (2) of BR Act, 1949, no Banking Company shall
hold shares in any company whether as a security or mortgagee or
as absolute owner of an amount exceeding 30% of paid up capital
of the company or 30% of its own paid up capital and reserves,
whichever is less.
Lending to Capital Market: Not to exceed 40% of Bank‘s networth,
of which Bank‘sdirect investment in shares, debentures etc., not to
exceed 20% of NW.
Loans to Mutual Funds: Upto 20% of net asset of the scheme, max.6
months.
An internal exposure ceiling is fixed for discounting the bills coaccepted by Private Sector Banks, Co Operative Banks and
other Non Prime Foreign Banks for negotiation of documents
under LCs, with in 50% of Net Owned Funds of such banks.(with
in 25% of NOF in case of co-op banks).
Bank may directly lend to Private Sector Banks having tangible net
worth of Rs.1000crores and above.
For Construction Companies, Assessment of working capital limits:
Not to exceed 9 times of Net Owned Funds of the entity. This
may be waived to Low Risk rated entities selectively by GM(HO)
and above authorities.
Lending on the guarantees issued by other Banks/Fis: Borrower‘s
satisfactory dealings with us for atleast 3 years, Bank which issued
guarantee should have fund based exposure of atleast 10% of the
amount guaranteed.
All proposals of software units falling within the sanctioning powers
of the Circle Offices shall be screened by a Software Advisory
Committee at the respective Circle Offices. After this, the same shall
be placed before the competent authority for sanction. Similarly, all
proposals of software units falling within the sanctioning powers of
HO including the proposals from PCBs shall be screened by the
Software Advisory Committee at HO and after this, the proposal shall
be placed before competent authority.(Cir 469/2013)
 At present, bank is pricing loans based on Credit Risk Rating
done under Large Corporate Module for borrowers with
exposure above 2 crores engaged in Manufacturing/Service
activities with turnover/income above 25 crores.
 Benchmark Current Ratio : Turnover Method: 1.25 and
MPBF/Cash Budget Methods: 1.33
 If the Current Ratio is less than prescribed norms, if bank
exposure is Rs.50 croresand above, Quarterly Cash flow
statements will be called for and monitored to ensure that there
is no further deterioration in liquidity.
 Fixation of time schedule for Working Capital limits: LR1 - max.18
months, LR2&LR3 - max.15 months, NR, MR - max.12 months.
 MSME Account with LR 3 rating : Tenability 15 months
 In case of new borrowal accounts, Low Risk (LR1,LR2,LR3) and
Normal Risk rated accounts only can be financed by respective
Sanctioning Authority.
 Moderate Risk and High Risk accounts: Only renewal by
concerned sanctioning authority. Additional limits by next higher
authority.
 Duration of limits: Employees OD: 2 years, Gold Card for
Exporters : 2 years, Established Exporters: 2 years, LUCC : 3 years,
Canara trade: 2 years, SME : may be permitted for 2 years.
CanaraKisan OD:3 years, KCCS:5 years, KisanSuvidha: 5 years,
KrishiMithra CCS: 3 years.
 Rejection of SME, EL proposals with concurrence of next higher
authority
 Rejection of Export Credit proposals to be reported to CMD
 Turnover method applicable to SME Borrowers upto 5 crores
and Non SME Borrowers upto2 crores. Traders, Merchants,
Exporters, others etc., who are not having a pre-determined
manufacturing /trading cycle- Upto2 Crore
 MPBF method applicable above 2cr(Non SME) above 5cr (SME) :
upto 25 crores.
 Above 25 crores, either MPBF or Cash Budget method.
 Loan System for delivery of Bank Credit is applicable for working
capital limits of 10 crores and above.
 Agricultural term loans above 50 lacs: Project Appraisal by
AgriculturalConsultancy Services, HO.
 Commitment charges
: Limits of 10 crores and above
(FB&NFB) corporate borrower - 0.25% of unutilized portion(Priority
Advances)(For Non Priority-1%)
 Target for Export Credit : No Targets are prescribed for Indian
banks. Export Credit comes under Preferred Sector (12% of ANBC for
foreign banks only)
 Corporate Debt Restructuring : Corporates of 10 crores and
above under MBA/Consortium/Loan Syndication/JLA. Accounts of
Standard, Sub- Standard and Doubtful assets are eligible
 In case of existing parties, term loans for expansion , 200 lacs and
above, new parties 100 lacs and above, project appraisal has to be
done by Project Appraisal Cell, HO/CO/Authorised appraisers
 Pre payment penalty in case of Term Loans transferred to other
Banks : 2%
 National Building Code 2005 is applicable for loans to
construction of building, exceeding 25 crores
 Quick Mortality Accounts are: Aggregate liability of
5
lacs and above and becoming NPA with in 12 months for parties
who availed limits for first time
 Mid Term review is applicable for all accounts under sanctioning
powers of AGM and above and shall fall after 6 months
 Validity Period of sanction : Working capital limits: 3 months,
Term Loans : 6 months, Short Term Loans/Ad hoc limits: 30 days. If
limits are not availed within the above period, sanction is to be
revalidated by sanctioning authority. The revalidation can be
permitted by the sanctioning authority only once during the
validity period of the sanction. CAC of the Board is permitted to
revalidate the credit limits/ loan sanctions in respect of CAC/MC
power accounts more than once on a case to case basis before the
expiry of the validity period.(Cir 469/2013)
 Cancellation of Unavailed Portion of Limits: Sanctions upto next
lower sanctioning authority to Head of Circle: Cancellation by
Head of Circle. CO Head sanction: Cancellation by CO head, HO
sanctions - Cancellation by GM, HO only.
 For the purpose of disclosures under Section 9 of the Balance sheet,
the Term loans are defined as under:
Term Loan
Short Term:
Less than 1 year
Medium Term
Between 1 year to 3 yrs
Long Term
More than 3 yrs
 As per RBI s clarification on Schedule 9 of the Balance Sheet, Short
term loans with maturity upto one year may be classified under
Cash Credit, Overdrafts and Loans repayable on demand and
Term Loans with maturity in excess of one year may be classified
under Term Loan.
 Credit Audit System: Scrutiny of accounts to improve general
health of credit portfolio: Aggregate (FB+NFB) limits of 1 crore and
above.
 Credit Monitoring Officers: All borrowal accounts of 1 crore and
above (fund &Non-fund based) shall be monitored once in 2 months
by CMOs.
 Credit Administration & Monitoring wing shall conduct monitoring
of high value borrowal accounts of `10 crores and above & all
PCB accounts(including MSME Sector & excluding Agriculture).
Special watch a/cs. 1 cr. And above.
 Extention of limits: restricted to 4 months with maximum 3
months at a time. Second extension if any will be treated as
sanction.
 Holding on operations may be permitted by the respective
sanctioning authority. However, in respect of the accounts
under branch powers, the same may be permitted by the next
higher authority at CO. The maximum period upto which Holding
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on Operations may be permitted shall depend upon the need and
based on merits.
First level extention(for LR,NR,MR) can be permitted by
concerned sanctioning authorities. HO sanctions - first level
extention by GM, CO.
Second level extentionupto CO Head sanctions by CO Head. HO
sanctions by HO GM.
In respect of High Risk Accounts: Only one extention can be
permitted and for a period not exceeding 2 month. Extention by
CO head for sanctions upto below CO head powers and by
GM(HO) for CO head sanctions. GM(HO), ED sanctions:
respective authorities only. In case of CMD sanction, ED can permit
extension. MC accounts, extention by CMD and ED in absence of
CMD.
In expired limits, exposures beyond the sanctioned limits shall
not be permitted except for internal debits.
Credit Risk Rating : Pre sanction exercise for all loans of 2 lacs and
above. Models:
Less than 2 lacs - Portfolio model
2 to 20 lacs - Small Value Model
Over 20 lakhs to 2 crores - Manual model
Above2crores-RAM.
 Bank accepted Domestic Credit Rating Agencies: Credit Analysis
and Research Ltd (CARE), CRISIL Ltd., FITCH INDIA ltd., ICRA
limited, Brickwork Ratings India Pvt. Ltd.(Brickwork).
 International Credit Rating agencies: FITCH, MOODYS, STANDARD
AND POOR.
 SME RATING: MOU with SMERA ratings Ltd (SMERA) promoted by
SIDBI, Other banks /Fis and CRISIL. Our Bank has also entered into
MoU with the M/S Brickwork Rating India Pvt Ltd, M/S ONICRA
CREDIT RATING AGENCY OF INDIA LIMITED (ONICRA) & M/S
INDIA RATINGS & RESEARCH PVT LTD for MSME External credit
rating and the same is valid till 30.06.2014, 31.12.2014 & 16.09.2016
RESPECTIVELY or till the validity of NSIC scheme for
performance and credit rating of Micro &
Small Enterprises whichever is earlier.(Cir 315/2011, 355/2013,
489/2013)
 Valuation of Assets by outside valuers in Banks panel: Fixed
Assets: LR - Not required. NR : once in 3 years ( 2 cr and above)
MR&HR: Once in 3 yrs, 1 cr and above.
 Current Assets Valuation (Stock Aduit) Once in a year (LR 5 cr
and above, NR,MR,HR, unrated 1 cr and above). Doubtful Assets:
once in 2 years(1 cr and above).
 If an account is downgraded by 2 notches (while doing annual
risk rating of the account), stock audit is to be conducted with in
3 months from date of such downgradation.
 Valualtion of properties (Land & Building) 10 crores and above minimum 2 independent valuation reports to be obtained.(Cir
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469/2013)
Accounts of 10 cr and above and complicated cases irrespective of
amount, areentrusted to valuers in Panel ―A. Other accounts are
entrusted to Panel-B.
In case of falsification of accounts on the part of borrower,
formal complaint against the auditors of the borrowers should
be lodged with the Institute of Chartered Accountants of India
(ICAI) through CO.
Wrong certificates issued by advocates - Report to CO, CO will report
to BAR council of India.
Portfolio Management: Categorisation of Standard Assets under
Special Watch Category:
Category A : limits upto&including1
lakh, Category B: limits over 1 lakh, upto& including 5 lakhs.
Category C: More than 5 lacs, upto& including 25 lakhs, Category
D: More than 25 lakhs and above upto100 lacs. Category E: More
than 100 lacs. Reporting to CO: A&B: Monthly last day. C,D,E: 15th
and last working day of month.
Restrictions for Lending as per RBI guidelines: Sec 20(1) of BR act:
Bank can notadvance against its own shares. Selective Credit
Control: At present only levy sugar.
Bank should not grant loans/advances against FDRs issued by other
banks
No loans against CDs. (recently RBI permitted loans to Mutual Funds
only on CDs)
No Financing to Housing Projects undertaken by Govt. bodies for own
use.
No loans to be granted to companies for buy back of
shares/securities.
No loans to small/medium units engaged in manufacture of Aerosol
Units using ChloroFlouro Carbons (Ozone Depleting Substances).
Benchmark Parameters for Transport Operators: DSCR Not less than
1.50, DER not more than 3:1 (can be relaxed to 4:1), Repayment
max.6 yrs + max.3months moratorium.
Project Financing other than Infrastructure: Upto100 lakhs: DE
Ratio: not more than 3:1(can be relaxed to 4:1with reasons) DSCR
not below 1.50, FACR : not less than 1.33.
Over 100 lakhs (projects other than infrastructure): DER not more
than 2:1(CO head can accept 4:1 with reasons) DSCR not less than
1.50 (can be relaxed to 1.40), FACR not less than 1.33(1.20 by CO
head), IRR 4% above cost of funds. IRR applicability: Project Cost `25
crores and above.
Infrastructure: DER : 2:1 upto 4:1, DSCR not less than
1.50(relaxable to 1.25). Promoters contribution: not less than 11% of
project cost, FACR : not less than 1.25 (can be relaxed to 1) IRR : 4%
above cost of funds (Applicable for Project Cost of 25 crores and
avove. IRR for Road Projects can be 2% above cost of funds.
 Agriculture loans: DER : 3:1 (for TLs upto `10 lacs, DER upto
5.66:1), Promoters contribution: min.15% of PC, FACR not less than
1.2, DSCR not less than 1.5
 Normal margin on Computer Hardware: 40 to 50%, repayment : 3 to 4
years.
 LTV Ratio (Loan to Value Ratio) : Total Outstanding
Liability/realizable value of security. Shall not be more than that
accepted at the time of sanction.
 TIME NORMS FOR DISPOSAL OF LOAN APPLICATIONS:
Loans upto Rs.25000/- : 15 days
Kisan Credit Card - Branch Powers : 15 days
Other Priority Sector advances : BRANCH/CO/HO
Loans / advances upto Rs.25,000/- : 30 days /45 days /8 - 9
weeks
Micro, small and medium enterprises (MSME) (From the date
of receipt of completed loan applications)
Loans up to RS.25000/- : 2 weeks
Loans beyond Rs.25000/- and upto Rs.5 lakhs : 4 weeks/4 weeks/
4 weeks
Loans over Rs.5 lakhs and upto Rs.25 lakhs : 30 days /45 days
/45 days
 Loans over Rs.25 lakhs : 30 days / 45 days / Within a max. of 8
weeks
Export Credit
 Sanction of fresh/ enhanced credit limits : 30 days / 45 days/45
days (25 days for Gold Card scheme for all)
 Renewal of existing credit limits : 30 days/30 days/30 days (15
days Gold Card)
 Sanction of adhoc credit facilities : 15 days/15 days/15
days (7 days Gold Card scheme for all ie Branch/CO/HO)
Advances under Sole Banking, Multiple Banking
Arrangement
Consortium and other than the above [(1) to (4)]
 Sanction of fresh/ enhanced credit limits : 30 days /45 days/60
days (export:30/45/45 days)
 Renewal of existing credit limits : 30 days / 45 days / 45 days
(export:30 days all)
 Sanction of adhoc credit facilities : 30 days all (export: 15
days all)
 Takeover of Borrowal Accounts from other Banks: Current Ratio:
Not less than 1.33/1.25. DER not more than 2. UptoDGM(CO)
powers, Permission from Next Higher authority is required.
 Takeover of SME accounts: concerned sanctioning authority may
sanction. Current Ratio: up to 1 (including 1). DE ratio up to 3. No
NOC.
 During first year of takeover, adhoc limits can be permitted by
Next Higher Authority upto Circle Head Powers. Next higher
authority is also empowered to permit additional exposure at the
time of takeover / enhancement in the limit during the first year
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of takeover (BI 40/2013)
Residual Repayment period should not be enhanced in case
of takeover of Schematic Lending accounts.
Credit Administration: New Accounts: LR1, LR2,LR3 and
Normal Risk Rating Accounts: Sanctions by concerned
sanctioning authority. Moderate Risk: Circle Head except MSME
accountS.
Existing Accounts: LR1, LR2, LR3, Normal Risk: Concerned
sanctioning authority can permit renewal with need based
enhancement.
Moderate Risk: Respective sanctioning authority can do renewal
and need based enhancement upto Circle Head power account,
however when borrowal account is downgraded to Moderate
account, immediate next enhancement/additional limit should be got
cleared by the next higher authority before conveying the
sanction.
In case of HO power account concerned sanctioning authority
can renew/enhance or permit additional limit in moderate risk
rated borrowal accounts.
High Risk upto Circle Head power account:
Renewal/enhancement and additional limit can be permitted but
while
taking additional exposure clearance from next higher
authority should be obtained. In case of high risk rated HO
power account, respective sanctioning authority can permit
renewal with enhancement/additional/fresh exposure.
ADDITIONAL POLICY GUIDELINES FOR TAKEOVER OF ACCOUNT(Cir
33/2012)
 Audited financial statements for the previous 3 years shall be
obtained and analysed.
 Further in respect of term loan take over, it is to be ensured
that the
projections and performance are in tune with the actuals at the
time of take over. In case of vast variations, reappraisal of the
project shall be undertaken and assessed. Likewise where vast
difference in actual financials vis-à-vis projections and time and
cost overrun of over 15% is observed, takeover be avoided.
 In respect of corporates, Audited financial statements (ABS) filed
with ROC are to be verified for the previous 3 years.
 Pass sheet for a minimum period of one year in case of term loan
and 6 months in case of working capital limits of the borrower
whose account is being taken over from the transferor bank shall
necessarily be obtained and verified.
 Reasons for switch over shall be ascertained and satisfied. Shifting
of accounts from banks during last 5 years shall not be more than
one occasion and gap to last switch over shall be a minimum of 2
years. The stipulation of minimum period of 2 years of existence
with other Bank prior to takeover is dispensed with in respect of excanarabank coustomers who moved to other banks for better
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rate. However, branches/ offices to ensure that while taking over
of such accounts, the financials of the borrowalaccounts shall
continue to be satisfactory. (Cir 82/2013)
Sanction communication of previous banks including
modifications, if any, for the last 3 years shall be obtained and
analysed/verified.
The collaterals offered to the previous lender shall be passed on to
the Bank for the exposure to be taken over. However, if the same
cannot be insisted, the sanctioning authority may permit
acceptance of alternate securities with proper and justifiable
reasons. In case of additional exposure, Bank shall insist for
additional collateral security depending upon the merits of the
case. As far as possible, dilution of security/reduction in margin
should not occur on account of take over.
Securities to be revalued at the time of take over of account as
per the extant guidelines and distress sale value be ascertained.
Stock audit to be carried out for take over of working capital limits,
as a prerelease condition.
Permitting additional exposure at the time of
takeover/enhancement in the limit during the first year of takeover
is delegated to next higher authority. Adhoc limits can also be
permitted by the next higher authorities (upto Circle power
accounts) during the first year after take over as per extant
guidelines. (145/2013, BI 40/2013)
OPL from the transferor bank shall necessarily be obtained before
take over of the loan. Where an existing Term loan is takenover on
consortium basis, an opinion letter from the Lead Bank be obtained.
Taking over of share of Lead Bank be totally avoided
SME Accounts with working capital limit of 2 crores, rated
LR1,LR2, obtention of stock statement and godown inspection may
be prescribed at quarterly intervals by concerned sanctioning
authority. But, monthly simplified stock statement to be obtained.
QOS/HOS: Applicable for parties enjoying fund & Non-fund
based limits of 5crore and above(Including Agricultural
Advancescir 469/2013). Penal interest @1% for non
submission/delayed submission from September 2009 onwards
for parties enjoying WC limits of 5 cr& above. Penal interest to be
charged on liability for the delayed period ie for entire quarter, to
be collected on first day of subsequent quarter).Penal interest of
0.25% on NFB liability subject to a cap of 1 Lakh per month for
Parties who enjoy exclusive NFB. Where Party is enjoying and NFB
limit, penalty shall be 1% on FB liability and 0.25% on NFB as
above shall be charged.
1% Penal interest for delay in creation of EMT/II charge.
Enabling Mechanism for meeting payment obligations by Large
Corporates to SMEs: While sanctioning working limits of 10cr and
above to large corporate, we fix sub limit, within the overall limit,
specially for meeting payment obligations in respect of purchases
made by them from SMEs.
Commercial Real Estate Clarifications : Real Estate is generally
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defined as an immovable asset land (earthspace) and the
permanently attached improvements to it.For an exposure to be
classified as CRE, the essential feature wouldbe that the funding
will result in the creation / acquisition of real estate (such as, office
buildings to let, retail space, multifamilyresidential buildings,
industrial or warehouse space, and hotels)where the prospects for
repayment would depend
primarily on the cash flows generated by the asset. Additionally,
the prospect of recovery in the event of default would also
depend primarily on the cash flows generated from such funded
asset which is taken as security, as would generally be the case.
The primary source of cashflow (i.e. more than 50% of cash flows)
for repayment would generally be lease or rental payments or the
sale of the assets as also for recovery in the event of default where
such asset is taken as security.
A separate sub-sector viz., CRE-Residential Housing (CRE-RH)
carved out of commercial real estate sector. The following will be
considered as CRE-RH: Loans to builders/ developers for
residential housing projects (except for captive consumption)
under CRE segment. Such projects shall ordinarily not include nonresidential commercial real estate. Integrated housing projects
comprising of some commercial space (eg. Shopping complex,
school etc.) can also be classified under CRE-RH, provided
that the commercial area in the residential project does not
exceed 10% of the total Floor Space Index (FSI) of the project.(Cir
311/2013)
Exposures NOT to be treated as CRE: If the repayment primarily
depends on other factors such as operating profit from business
operations, quality of goods and services, tourist arrivals etc., the
exposure shall not be counted as Commercial Real Estate.
CRE exposures to the extent secured by Commercial Real Estate
would attract a risk weight of 100 per cent. In CRE-RH 75%.
Exposure to Equities of Real Estate Co. or Mutual Fund Co.
investing in equities of CRE would attract 125% risk weight and
investment in Equities of Venture Capital Funds will attract 150% risk
weight.
Project Parameters of Commercial Real Estate: DER 3:1, FACR
2:1,Promoterscontribution:50% (own 25% and advances from
purchasers 25%). In case land is to be purchased from Govt.
agencies the overall margin shall be 40%. FACR >=2:1.
Repayment upto 7 to 10 years including moratorium. Upto 7 years
in case where the repayment is out of rent from the property.
Lending in respect of Special Economic Zones (SEZs) has been
defined as one of the categories eligible for classification as
Infrastructure Lending.
MSOD details shall be obtained from Industrial borrowers
enjoyingworking capital limits of 10 lac and above apart from stock
statement.
Risk Weight for Asset Financing Companies : 100%
Regulatory Retail: Annual Average Turnover less than 50 crores,
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individual loan not exceeding 5 crores, No single loan exceeding
0.2% of overall regulatory retail portfolio.(Excluding NPA)
Risk Weight for NPAs: If provision is less than 20%of
outstanding amount: Risk Weight is 150%. 100% risk weight if
provision is atleast 20% of outstanding and50% risk weight if
provision is atleast 50% of outstanding. If provisions reaches atleast
15% of outstanding and if the NPA is fully secured by Mortgage
properties or machinery, then risk weight will be 100% only
(net of specific provisions)
EXIT POLICY: If account is graded as High Risk(other than
PSUS), Sliding risk gradation by 2 notches, failure of
restructuring/rehabilitation efforts more than twice in a period of 3
years, persisting gross irregularities.
Penal interest of 2% on the outstanding liability shall be collected if
the Audited financial statement is not submitted before 31st
October of every year or within a fortnight from the date of Audit
of financial accounts of the company whichever is earlier. This
shall not be applicable to PSUs / Government organizations.
At the request of the depositors/borrower/Auditee client,
confirmation of balances in deposit and advances accounts of
entities should be sent directly to the Balance Sheet auditors of the
clients.
In the case of shares/convertible debentures held in securitized
form, a minimum margin of 25% should be maintained.
NBFCs are prohibitedfrom contributing capital to any partnership
firm or to be partners in partnership firms. The partnership
firms include Limited Liability Partnerships (LLPs) also. The
aforesaid prohibition will also be applicable with respect to
Association of persons, these being similar to partnership.
471/2013
NATIONAL PENSION SYSTEM(NPS)IMPLEMENTATION OF
CORPORATE SECTOR MODEL
 Like in SWAVALAMBAN, Bank is eligible for fee-income of
Rs.100/- per account at the time of opening and transaction fee
of 0.25% of every amount of contribution, with a minimum of
Rs.20/- per transaction, which will be passed on to the
respective branches
475/2013
Financial Inclusion & Financial Inclusion Plan (FIP)
The FI implementation has been completed in villages with more than
2000 population by 31.03.2012. As per RBI directive, the implementation
in villages with less than 2000 population shall be completed by
31.03.2016.
482/2013
DIGITAL CERTIFICATE - Changed procedure at IDRBT
It is informed by IDRBT that the Central Certifying Authority has to
verify the original Applications along with all documents, before issue
of Digital certificates.
483/2013
486/2013
493/2013
496/2013
WAIVER OF SERVICE CHARGES FOR DEPOSIT OF CHEQUES AT
DRAWEE CENTRE
Cheque deposit at drawee centre is treated now as local clearing
and OSC charges are waived for such transaction with immediate
effect.
Education Loan Accounts - Rephasement of all existing loans as per
IBA‘s Revised Model Education Loan Scheme
Extention of period of Standard Assets of ELs:
 Upto 7.5 lakhs: 10 years
 Above 7.5 lacs: 15 years
Acceptance of cheques bearing a date as per National Calendar
Samvat) for payment
“ An instrument written in Hindi having date as per Saka Samvat
calendar is a valid instrument. Cheques bearing date in Hindi as
per the National Calendar (Saka Samvat) should, therefore, be
accepted by Banks for payment, if otherwise in order. Banks can
ascertain the Gregorian calendar date corresponding to the
National Saka calendar in order to avoid payment of stale cheques ”.
PREMIUM HOUSING LOAN—INTRODUCTION OF SEPARATE &
EXCLUSIVE HOUSING LOAN SCHEME FOR HIGH NETWORTH
INDIVIDUALS
 Target group: HNI having annual gross income of Rs.25 Lakhs and
above.
 Purpose: Housing requirement but Utilization of loan amount for
purchase of Plot will be restricted to 60% of eligible / sanctioned
loan amount.
 Eligibility: Where the HNI borrower requires loan in excess of
the regular entitlement, for the purpose of determining the loan
quantum and repayment capacity, income of father / mother /
spouse / son / daughter who have future interest in the property
may also be considered, subject to the condition that such
individuals execute the loan papers as co-borrowers / guarantors.
 Age: Minimum: 21 years & Maximum: (i.e. the age by which the
loan should be fully repaid) Age of retirement plus 5 years for
salaried class & 70 years for others
 Loan Amount: Rs.1 Crore and above(5 times of the Gross
Annual Income shown in the latest Income Tax Assessment Order /
Audited Financials. Income of father /mother /spouse /son
/daughter can be clubbed for calculating eligible loan amount.
Expected Rental Income less tax, cess, etc can be added to gross
income for assessing the loan amount.) Stage wise disbursement.
 Repayment Capacity: Total deductions including EMI of proposed
loan should not exceed 70% of the Gross Annual Income of the
applicant.
 Margin: 25% of Project Cost.LTV ratio should not be more than
75% at any point of time.
 Rate of interest: BR+0.10%. If the finance is for 3rd and
subsequent units of the party/parties, then the proposal has to be
treated as HL-CRE and 1% above applicable rate is to be
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charged.(ref Cir.109/2013).
Security:Primary Security:Equitable / Registered Mortgage of the
property.
Guarantee:Third party guarantee can be stipulated by sanctioning
authority
Processing Fees:0.10% of loan amount subject to maximum of
Rs.25000.00.
Mortgage Charges
actual expenses / charges incurred for
creation of Mortgage.
Sanctioning authority; As per delegation of Powers
Repayment Period: Salaried Class: Remaining period up to
the date of retirement plus 5 years or 30 years, whichever is less.
Others: Remaining period up to attainment of 70 years of age
or 30 years, whichever is less.
Other Norms on Repayment Period:
 Interest shall be recovered on monthly basis during the moratorium
period.
 It should be very clearly stated in the Sanction Letter issued to the
borrower that the applicable Rate of Interest is floating in nature
and linked to the Base Rate. The EMI shall be subject to change in
accordance with the movement in Base Rate from time to time.
 Moratorium Period: Construction: Maximum 18 months. In
case of loan for purchase of Flat under construction
Maximum 24 months. However, selectively, this may be
relaxed unto maximum of 36 months by next higher
authority.
 In case of loan for purchase of ready built house/flat Maximum 2
months.
 In case of loan for purchase of semi finished house / old house and
Finishing / modification / repair of the house Maximum 12
months.
497/2013
INTRODUCTION OF A SEPARATE AND EXCLUSIVE HOUSING LOAN
SCHEME FOR NON-RESIDENT INDIANS
 Purpose of the loan: Housing purpose. For undertaking repairs,
renovation, up gradation, creation of additional amenities,
monetary ceiling of Rs.15 lakhs.
 Taking over the liability from other institutions shall be permitted
by the Circle head.
 Loan can be permitted for flats under construction subject
to following conditions(Cir 602/2013)
 Borrowers furnishing collateral security by way of mortgage of
alternate property or pledge /assignment of approved
securities equal to the loan amount -TO BE PERMITTED BY
RESPECTIVE SANCTIONING AUTHORITIES. OR Furnishing
guarantee from a guarantor who is good for the amount of
advance and acceptable to the Bank TO BE PERMITTED BY
NEXT HIGHER AUTHORITIES.
 Old Housing Loan Scheme (as per Manual of Instructions on
Retail Loans updated till 30.06.2009) for financing NRIs stands
automatically withdrawn from the date of introduction of the
above separate and exclusive housing loan scheme for NRIs.
 Eligibilty: NRI & PIO
 Minimum age 21- years and maximum age by which loan is to be
repaid is 60 years.
 Spouses and close relatives of NRIs who are residents can join with
NRI as joint applicants .
 Steady source of income and minimum employment in abroad is 2
years having valid job contract/work permit.
 The applicant should have NRI status for at least 3 years.
 Loan amount: Four times of annual gross income subject to NTH
of 40% after proposed EMI and meeting the margin requirements.
 Margin: Loans Up to Rs.75 lakhs 20% & Above Rs.75 lakhs 25%
 Rate of Interest:Up to Rs. 30 lakhs Base rate i.e 10.20%, Rs.30.0 to
Rs. 75.0 lakhs Base rate +0.05 % i.e 10.25% & Above Rs.75.0 lakhs
Base rate +0.25% i.e 10.45%
 For purchase or owning of 3rd and subsequent houses, the interest will be
1% above the applicable rates.
 Processing fees: 0.1% subject to minimum of Rs.500/- and
maximum of Rs.10000/ Repayment Period:Maximum 30 years (or) Up to the age of 60 years
 Moratorium period (Repayment holiday):Repayment to start
immediately after two months in case of ready house/flat. Fresh
Construction- 18 month.
Renovation- 12 month.
 Disbursement- Construction linked
 Security- Mortgage & Resident Indian guarantee
498/2013
503/2013
Execution of Documents:The NRI customers who are not in a
position to execute the documents in person in India can give Power of
Attorney in favour of resident close relative as per the format and
stamped the same is to be registered or notorised as per existing
guidelines.
MODIFICATIONSN RETAILLOAN SCHEME GUIDELINES
CANARA HOME LOAN PLUS – Modified Guidelines
For salaried class:
 10 months gross salary subject to a maximum of
Rs.25.00 lakhs. Loan can be sanctioned either as
single transaction loan or overdraft.
For non-salaried class:
 75% of 3 years average annual income of the applicant
subject to maximum of Rs.25.00 lakhs
MARGIN ON HOUSING LOANS :
 Upto 20 lakhs: 20%, 20 to 75 lakhs: 20%(new) 25% (old) >75
lakhs: 25%
Introduction of new SB Variant - CANARA SB GEN-Y Product
 For young generation, treated as VIP customers.
 Initial Balance & Min Balance: NIL, Debit Card :Free
 Credit Card with free personal accident insurance coverage :
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Minimum income Rs 2 lacs and above First year free of charge
Canara Global Gold Card will be issued : Limit is Rs 1 Lac
ATM cash withdrawal per Day : ATM Cash withdrawal Rs 40,000
daily.
Statement of Account through e mail : Free every 15 days
Net Banking, NEFT, RTGS: Free
504/2013
ONLINE SUBMISSION
OPENING SB ACCOUNT
OF
APPLICATION
FOR
 Web portal created for submission of online Application for opening
SB Account for Resident Indian Citizens holding PAN Card
 Personal Data- Mobile No/Date of Birth/ PAN No and e mail id to be
fed & submitted
 One Time Pass Word (OTP) message will be received in the
prospect's mobile
 The prospective customer will receive an e mail with a link to fill up
application & submit
 After the prospect Submits the application successfully he/she will
get an e - mail to go to the branch of his / her choice within 7 days ,
and submit KYC documents /2 photos and initial deposit of Rs 1000/
 The Branch will receive an e mail regarding the submission SB
application of the prospective customer.
 When the party comes , the Branch has to down load the SB
application from Single Sign On Package & do the needful
 NRIs/ Minors and Staff are not permitted to submit the SB
application online
507/2013
PMEGP Scheme- Margin Money Adjustment account
 Adjustment of the Margin money subsidy at the end of THREE
years lock-in period by the financing branches
509/2013
CHANGE IN BRANCH INSPECTION RBIA RATING MATRIX INTRODUCTION OF “DARPAN” - WEB BASED PACKAGE FOR RBIA
The changes effected in RBIA are furnished below:
 Change in Periodicity of RBIA: LOW RISK: 18 months
 MEDIUM RISK: 15 MONTHS, HIGH RISK: 6 Months
 Revision in RBIA Rating Matrix : Control Risk :80%, Business Risk
:20%
 Spot Rectification: Minimum 85% spot rectification is expected at
the time of conclusion of RBIA at branch
510/2013
Banking Codes and Standards Board of India (BCSBI) Implementation of Codes - Rating of member Banks on the
awareness of the importance of BCSBI Codes
BCSBI officials undertake surprise/incognito visits to select
branches of the bank every year to assess the level of implementation
of the Codes at grass root level.
511/2013
OBTENTION OF MANDATORY CERTIFICATES FROM THE
PENSIONERS/FAMILY PENSIONERS
All our pension paying branches are required to complete the process of
obtention of the following certificates by the end of November 2013;
1. Life Certificate - from all pensioners/family pensioners
2. Non-marriage certificate - unmarried daughters drawing family
pension
3. Re-employment certificate - from all pensioners
4. Re-marriage certificate - Widow / Widower pensioners
513/2013
Basel II Framework - Reporting system for computing capital charge on
Credit Risk for Standard Assets under Standardized Approach
RBI has carved out a separate sub-sector called Commercial Real
Estate - Residential Housing (CRE-RH) from the CRE sector.
Integrated housing projects comprising of some commercial space
(e.g. shopping complex, school, etc.) can also be classified under
CRE-RH, provided that the commercial area in the residential housing
project does not exceed 10% of the total Floor Space Index (FSI) of
the project.
Recently RBI prescribed the LTV ratio and Risk Weights as under:
LTV %
Risk Weight
Upto Rs.20.00 lakhs
90%
50%
20 lakhs to 75 lakhs
80%
50%
Above 75 lakhs
75%
75%
Restructured / Rescheduled Housing Loans should be risk weighted
with an additional risk weight of 25% to the risk weights prescribed
above
Loans guaranteed by CRGFTLIH (Credit Risk Guarantee Fund Trust
for Low Income Housing)- Maximum coverage:
 Upto Rs 2 lacs or such amount as decided by the
Trust :90% of the amount in default subject to the
ceiling of 90% of the sanctioned housing loan
amount
 Above Rs 2 lacs and upto Rs 5 lacs or such amount as decided
by the Trust : 85% of the amount in default subject to the ceiling
of 85% of the sanctioned housing loan amount
 Zero percent risk weight is assigned for the portion of
exposure guaranteed by CRGFTLIH. The balance outstanding
in excess of the guaranteed portion would attract a risk weight
as appropriate to the borrower / counter party.
515/2013
Loan protection scheme offered by M/s Canara HSBC Oriental Bank of
Commerce Life Insurance Company Limited to provide coverage on a
voluntary basis for eligible Housing Loan / Loan Against property (LAP)
borrowers . Introduction of new Life Insurance Group Secure Scheme
with Regular Pay Option
- annual or monthly through ECS /
SI only.
516/2013
Facilities, concessions and financial assistance to SENIOR CITIZENSReiteration of existing guidelines
Additional interest on term Deposits:
 For domestic term deposits of Senior Citizens (who have
completed the age of 60 years & above), Bank is offering
additional rate of interest of 0.50% in all maturity slabs (i.e., 7
days to 10 years).
CANARA PENSION :
 All the Pensioners who are drawing their pension through our
branches are eligible for financial assistance under the scheme.
10 months pension maximum up to Rs. 2.00 lacs
(with NTH
40% after EMI) can be availed
 The loan is to be repaid in easy EMI of 60 months(in case of
pensioners below 65 years) and 48 months (in case of
pensioners above 65 years)
CANARA JEEVAN :
520/2013
 Loans up to 90% of the assessed value of the property may be
provided depending on age of the borrower and nature of the
property subject to minimum loan quantum shall be Rs.5.00
lacs and the maximum shall be Rs.50 lacs in case of
independent houses
Non Credit / Delayed Credit of Transfer of Funds under RTGS
Delayed credit to the beneficiary : Repo Rate
Delayed return to the sending bank: Repo Rate + 2%
R
R
524/2013
SCHEME FOR IMPLEMENTATION OF ENERGY EFFICIENT
TECHNOLOGIES FOR MSMEs[TECHNOLOGY AND QUALITY
UPGRADATION SUPPORT (TEQUP)](Cir 524/2013)
 25% of the project cost upto a maximum of Rs.10.00 Lakhs is
available as Government Grant. Repayment period upto 5 Years,
Excluding holiday period of 6 months. Scheme is valid during 12th
plan Period.
 The scheme is one of the ten components of the National
Manufacturing Competitiveness Programme (NMCP), aiming
towards reducing cost of production and Emission of Green
House Gases (GHG) by upgrading the manufacturing processes
towards usage of Energy Efficient Technologies (EET) and
encouraging the Micro, Small and Medium Enterprises acquire
product quality certification to national/international
standards from National Standardization bodies such as
Bureau of Indian Standards (BIS) and Bureau of Energy Efficiency
(BEE).
 Margin: 25%(Upto Rs.1 Cr), 20%(Beyond Rs.1 Cr)
526/2013
534/2013
541/2013
 The validity period of Non Personalized Canara Bank Debit
Cards has been increased from 3 years to 10 years.
 Cash withdrawal limit per day for Canara Bank Platinum Debit
Card has been increased from Rs.25,000 to Rs.50,000.
 Purchase limit for transactions at POS EDC terminal has been
enhanced to Rs. 50,000 from Rs. 20,000 for Standard Debit
Card.
SANCTIONING OF CREDIT CARD LIMITS
 CIBIL Report to be obtained, for sanction of Credit Card Limit
for Rs.1.00 lakh and above.
EWIRM WEB BASED PACKAGE
543/2013
Solar pumpset for irrigation - New Agriculture Credit Product
 A loan upto 75% for various solar pumpset components after
approval from MNRE
 Loan will be granted for installation of solar water pumping system
 He should own an economic land holding with a minimum of 10
acres. However, loans to be considered even if the benefiting area is
less than 10 acres provided the farmer is able to sell surplus water.
 Due to Technical limitation of solar pumpset, it can work at
low Heads only (shallow water sources) and low capacity (2.50
HP pumpsets) & hence capacity to irrigate small area only (1-2
Hectares) due to small discharge.
 Projected DSCR is not less than 1.60.
 Quantum- 75% of cost of equipments.
 Repayment- 5-7 years
544/2013
KISAN ALL-PURPOSE TERM LOAN - NEW AGRICULTURE CREDIT
PRODUCT
 A term loan with an upper cap of Rs.20 lakhs, for any farm
investment / development purpose
 Repayable within 9 years, irrespective of individual investment /
development sub component. However development projects
with a long gestation period shall not considered in view of the
specific tenor of this credit product (eg. Mango plantationrequiring gestation of 6-7 years). Purchase of Tractors,
Combine Harvesters, and Cars are out of the purview of this
Scheme.
 It shall be single transaction Term loan limit Loan repayable within 9
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545/2013
years.
It shall be subject to 5 times of Annual farm income (current-pre
development stage as assessed by the branch based on
crop pattern & allied activities undertaken) of the farmer
including allied activities or 50% of the value of land mortgaged
(for aggregate loan above Rs.1 lakh) which ever is lower, with
a maximum Rs. 20 Lakhs.
Security: Above Rs.1 Lakh (aggregate loan)-Mortgage of Land ( it shall
be at least 200% of the limit sanctioned) in addition to the hypothecation
of assets created.
The farmer is allowed to draw the amount as per the initially
estimated period of 2-3 years (but one of the activities to be
currently availed), with a simple letter of undertaking linked to
the loan application/loan document executed. The drawal to be
permitted on the indicated limit for each of the purposes specified
at the time of sanction.
Repayment: 9 Years. This may be a ballooning repayment and
interest shall be paid along with the installments.
TERM LOAN FOR AGRICULTURAL PURPOSES AGAINST GOLD
JEWELLERY - NEW AGRICULTURE CREDIT PRODUCT
 Quantum: Linked to value of pledged gold jewellery.
With a minimum of 40% on appraised value(3 year
repayment option)/50% margin(>3 years-upto 5 year
repayment option), or lending rate advised by HO from
time to time whichever is lower.
 Proof of pursuing the activity/investment is to be given
for loans above Rs. 1 lakh, including under allied
activity
 The purpose of the loan can be for
any one/combination of investment/development
purposes relating to agriculture and allied activities
with a maximum of Rs.3 lakhs (aggregate exposure
under Gold loans)
 ROI: As per Agril Term Loan.
 Repayment: The repayment period of the loan should
be fixed in line with the Term loan purpose but not
exceeding 5 years, in suitable installments coinciding
with the harvesting and marketing season / generation
of income from the activity
549/2013
Increase in cash withdrawal limit at ATMs to Non ResidentExternal (NRE)
customers using Canara Credit Cards
 Cash withdrawal limit to Canara Credit Cards issued to NRE
Customers increased upto Rs.50000/- subject to 50% of the credit
card limit.
 ATM facility is extended to Main Credit Card issued to NRE
customers.
550/2013
COLD STORAGE - ONLENDING TO POTATO GROWERS - AREA
SPECIFIC SCHEME
 Scheme is applicable to Agra, Chandigarh, Kolkata, Karnal,
Patna and Lucknow Circles where Potato is grown extensively
 The facility is to be extended as overdraft limit. Drawing power is
to be arrived at based on monthly statement of advance made
to farmers submitted by the borrower. The limit shall be valid for
12 months
 For OD I : limit for on-lending to farmers 75% of the total advances
made to farmers as per monthly statement submitted by the
Cold Storage owner, Maximum Rs.5 Cr. Liability to be brought
down to 50% by 30th November every year.
 Total security comfort by way of mortgage of landed properties
shall not be less than 125% for limits upto Rs 100 lac and 150% for
above Rs 100 lacs.
 BR + 1 %. Interest is to be debited at half yearly interval. Interest
debited in a half year to be recovered before next interest debit.
 Delegation of Power: As applicable to advances against book debts
 50% concession in applicable processing charges
 Waiver of stock audit is recommended for limits upto Rs 1 Cr.
However, Branch officials to verify the disaggregated data of
advance paid to the potato growers and ensure that the DP is
available.
 For limits above Rs 1 Cr, stock audit to be conducted during the
peak season between July to September.
 10 % of the potato growers financed by the Cold Storage owner
should be verified by the branch Official
551/2013
KAMADHENU DAIRY LOAN SCHEME - AREA SPECIFIC SCHEME
 KAMADHENU DAIRY LOAN SCHEME, a new scheme for
financing Dairy Farms with 6 / 8 / 10 animals to the farmers.
 Applicable to Kolar District of Karnataka on pilot basis
552/2013
HOUSING LOAN SCHEME FOR AGRICULTURISTS
 Target group: persons engaged in Agriculture and Allied Activities
like Dairy, Poultry and also in Plantation and Floriculture, having
annual gross income of Rs.5 Lakhs and above or having 5 acre
irrigated or 10 acre dryland.
 Purpose: Purchase of a ready built house / flat., Construction of
house / flat., Purchase of a site and construction of a house
thereon. The property to be acquired should be non
agricultural, having valid documents for usage for Housing /
non agricultural purposes. And preferably in Urban / Semi
Urban and growing townships, i.e. loans should not be given
for construction or purchase of houses on Agricultural Lands.
 The construction to be started with in 12 month from the date of
disbursement otherwise Canara Site ROI will be charges.
 Age: The age of the borrower or at least one of the joint
borrowers should not be more than 55 years at the time of
availing the loan.
 Loan Amount: 4 times of the Gross Annual Income as per
recorded proof. Income certificate issued by the
Tahsildar/Mandal Revenue Officer/District Revenue Authorities
or any competent authority may be accepted as proof of income
for reckoning the housing loan quantum if Income Tax returns are
not available. Stage wise disbursement.
 Repayment Capacity: HL is subject to 25% - 40% of Net Income
after proposed installment as applicable to general Housing Loan .
 Margin: New House - 20%( upto 75 lakhs), 25%(above 75)Old
house above 20 lakhs 25%
 Rate of interest: Up to Rs. 30 lakhs Base rate i.e 10.20%, Rs.30.0 to
Rs. 75.0 lakhs Base rate +0.05 % i.e 10.25% & Above Rs.75.0 lakhs
Base rate +0.25% i.e 10.45%. If the finance is for 3rd and
subsequent units of the party/parties, then the proposal has to
be treated as HL-CRE and 1% above applicable rate is to be
charged.(ref Cir.109/2013). The interest will be accrued monthly
compounded and debited as per repayment schedule i.e
monthly/quarterly/half yearly/yearly as per instalments. Interest
will be compounded monthly but demanded half yearly / yearly.
However, in respect of dairy farmers and borrowers engaged in
poultry activity, demand will be raised monthly as in the case
of general housing loans.
 Security: Primary Security:Equitable / Registered Mortgage of the
property.
 Guarantee: Third party guarantee can be stipulated by sanctioning
authority
 Processing Fees:0.50% of loan amount subject to MinimumRs.500/- & Maximum of Rs.10000.00.
 Sanctioning authority;As per delegation of Powers
 Repayment Period: Maximum 30 years. Remaining period up to
attainment of 65 years of age by youngest joint borrower or 30 years,
whichever is less.
Other Norms on Repayment Period:
 In all the cases of housing loans sanctioned to
agriculturists, branches should recover one advance
installment.
 It should be very clearly stated in the Sanction Letter
issued to the borrower that the applicable Rate of
Interest is floating in nature and linked to the Base Rate.
The EMI shall be subject to change in accordance with
the movement in Base Rate from time to time.
 Moratorium Period: Construction:Maximum 18
months. The moratorium period shall not exceed 3
harvesting seasons in case of half yearly installments
and 2 harvesting seasons in case of yearly installments.
However the repayment to start from the immediate
harvesting season during which the completion of
House /Flat take place.
558/2013
560/2013
566/2013
EXPORT CREDIT INSURANCE FOR BANKS - WHOLE TURNOVER
PACKING CREDIT ECIB (WT PC) COVER & WHOLE TURNOVER
POST SHIPMENT CREDIT ECIB (WT PS) COVER
 There is no change in the rate of premium payable to ECGC on
ECIB (WT PC) cover which is 6.00 paisa per Rs.100/- per month or
in respect of ECIB (WT PS) cover which is 4.50 paisa per Rs.100/per month computed on the basis of the average daily product
 While in respect of ECIB (WT PC) cover, the premium is being
collected from the exporter, in respect of ECIB (WT PS) cover, the
entire premium is being borne by the Bank
 Maximum Liability- Rs.1500 Cr( Max claim that can be paid in a
ECGC Year)
 Minimum No.of Accounts: 25, Minimum assured premium: 5 lakhs
 Period of Cover: 12 months
 Automatic coverage for all pre shipment credit upto 100 lacs per
party and S1,S2 parties without ceiling.
 Bank as a whole, WTPC is taken for 400 crores.
 Percentage of Cover- 90% for SSI Units, 75%- Upto Set Limit &
65% above set limit(Rs.3763.43 Lakh), 50%- Advances for Iron Ore
Commodity & GJD Sector.
 Premium: 6 paise per 100/- on the average daily product
 Default to be reported with in 4 months from due date
 Filing of claim: with in 6 months of Report of Default. No extension
permitted.(Cir 200/2013)
 Premium is payable on average daily product. Declaration to be
submitted by the end of succeeding month.
Hot-listing Canara bank Debit Cards by SMS Alert
 Canara Bank Debit Cards can be hot listed by sending SMS to
5607060 from the cardholder’s registered mobile number.
 Cardholder will get confirmatory SMS from the Bank.
MISSION 60 : CAMPAIGN TO INCREASE LENDING TO MICRO
ENTERPRISES
The three mandatory targets for lending to Micro and Small Enterprises
constitute the following:
 Minimum annual growth of 10% under micro enterprises accounts.
 Minimum annual growth of 20% in outstanding under Micro and
Small Enterprises.
 Amount under micro enterprises shall constitute 60% of the total
outstanding under micro and small enterprises as at 31st March of
previous financial year.
567/2013
Doorstep Banking Scheme for pick up / delivery of cash / Instruments from
/ at the doorstep of the Customer
 Minimum amount - Rs. 1 lac & Maximum: Rs. 25 lacs per
day. For all KYC complied Customers.
 Maintenance of average balance of Rs. 2 lacs.
 Service extended through Service Provider.
 In the first phase, scheme is launched in Bangalore,
Chennai, Hyderabad, Mumbai, Kolkata and Delhi.
568/2013
NRE TERM DEPOSITS - REITERATION OF EXISTING GUIDELINES
Automatic Renewal of NRE Term Deposits
Bank shall be automatically renewing the deposit for a similar period
originally contracted at the rate of interest applicable for the period as on
the date of maturity based on the clause incorporated in the Account
opening form. The Depositor is required to provide alternate instructions
if any, well in advance before the date of maturity".
At the time of renewal of the NRE deposits, branches should ensure that
the depositor continues to be a non-resident.
Where the overdue period does not exceed 14 days:
Branches may renew overdue NRE term deposit from the date of maturity,
if the overdue period (including the date of renewal) is 14 days or LESS
provided the renewed NRE deposit should run for a further period of one
year or more from the date of renewal. In this connection
In such cases, interest shall be paid on the amount of deposit so renewed
at such interest rate applicable to the actual period of renewal as stated
below whichever is lower:
a) As ruling on the date of maturity; OR b) As ruling on the date of renewal.
Where the overdue period exceeds 14 days :
1) If the overdue period is 15 days OR MORE , renewal of NRE term
deposits from the date of maturity is PROHIBITED. Branches
should not renew the overdue NRE deposits in such cases.
However, the entire amount of the overdue NRE term deposit OR
a portion thereof may be accepted as a fresh NRE term deposit
for a further period as specified by the depositor at the rate of
interest ruling on the date on which the fresh deposit is made. The
minimum period of such fresh deposit shall be 1 year from the
date of making such fresh deposit.
2) On such portion of overdue NRE deposits accepted as fresh NRE
term deposit, simple interest may be paid for the overdue period at
the rate ruling on the date of maturity (for the term for which the
deposit is accepted as fresh deposit) OR at the rate at which fresh
deposit is made, whichever is lower
A penalty of 1.00% is waived in case of premature closure/premature
extension of NRE term deposit of Rs.1 crore & above that are
accepted/renewed on or after 13.10.2012.
569/2013
REITERATION OF GUIDELINES WITH REGARD TO CERSAI FEES
FEES:
 For Adding Security Interest or Modification :Rs.250.00 for Loan /
Limit up to Rs.5,00,000/- + service tax
 Rs.500.00 +service tax for Loan / Limit above Rs.5,00,000/(Applicable service tax at present is 12.36%)
SEARCH OPTION :
 FEES: Rs.50/- + service tax for each property search irrespective
of the Loan / Limit
SATISFACTION OF SECURITY INTEREST
 FEES: Rs.250.00 + service tax for each Asset ID number, i.e., if a
Loan is sanctioned against the security of more than one property
and all the properties are registered with CERSAI, with separate
Asset IDs, such cases will attract charges of Rs.250/- + service tax
for each Asset ID cancelled.
PENALTY FOR DELAY IN REGISTERING THE SECURITY
Any application for condonation of delay Up to 30 days:
 Not exceeding Rs.2500.00 in case of Creation of security interest
for a Loan Up to Rs.5.00 lakh and not exceeding Rs.5000.00 in all
other cases
570/2013
RAJIV RINN YOJANA (RRY) - HOUSING LOAN SCHEME FOR URBAN
POOR
 Rajiv Rinn Yojana 2013 (RRY) supersedes the earlier
guidelines for Interest Subsidy Scheme for Housing the Urban
Poor (ISHUP)
 RRY is an additional instrument to address the housing needs of
EWS/LIG Segments in urban areas.
 Fixed Interest Subsidy of 5% (500 basis points) on interest charged is
provided.
i. Average Annual Income upto Rs.1,00,000/- is treated as EWS.
ii.
Average Annual Income between Rs.1,00,001/- upto
Rs.2,00,000/- is treated as LIG.
Subsidy admissible under the Scheme:
 For EWS - Interest Subsidy for maximum loan amount of Rs.5.00
Lakhs
 For LIG - Interest Subsidy for maximum loan amount of
Rs.5.00 Lakhs (Maximum Loan amount upto Rs.8.00 Lakhs).
Additional Loan amount between Rs.5.00 Lakhs and Rs.8.00
Lakhs will be at unsubsidized rates.
 Government of India will release subsidy through Central Nodal
Agencies (M/s. NHB and M/s.HUDCO).
571/2013
MOU with M/S Bosch Sales Force Academy of M/S BOSCH
Ltd, Bengaluru for Vocational Educational Loans.
 It is estimated that at present the total training cost for an
employable skills course of 2 months duration is about Rs.10,000/and for a 3 months programme, it would be Rs.15,000/- per
candidate
572/2013
PROMOTIONAL PROGRAMME FOR CANARA BANK DEBIT CARD VISA FOR CARD ACTIVATION
New Debit Cardholders linked between 01.12.2013 and 31-08-2014
are eligible for cash back at 5% with a maximum of Rs.100 per card for
their card usage for purchase transactions within 3 months of linkage
(including the month of linkage).
Cash withdrawals are not eligible.
Minimum 5 transactions of Rs.100 and above each should be done
during the three months‟ period from the month of linkage (including
the month of linkage).
575/2013
581/2013
TERM LOAN – DEFINITION
LOANS WITH MATURITY IN EXCESS OF ONE YEAR MAY BE
CLASSIFIED UNDER TERM LOAN CATEGORY
OBTENTION OF FUNDS CLEARANCE BY BRANCHES IN RESPECT OF
OUTWARD REMITTANCE TRANSACTIONS FOR RS. 50 CRORE AND
ABOVE
 Funds clearance from Treasury & Investments Division, Integrated
Treasury Wing, Mumbai by branches for outward remittance of Rs.
50 Crore and above
585/2013
The Reserve Bank of India had issued guidelines in respect of unclaimed
deposits on 22.08.2008 as under ::
" If a Fixed deposit receipt matures and proceeds are unpaid, the
amount left unclaimed with the Bank will attract Savings Bank rate of
interest ".
592/2013
RESTRUCTURING OF MSME ADVANCES - CONSOLIDATED
GUIDELINES “CANARA SAHAYATA”
 Debt Service Coverage Ratio (DSCR)- May be accepted upto
31.08.2
minimum 1, duly justifying the same. For Small Enterprises
minimum ROCE equivalent to Bank’s 5 years Govt. Security
Yield may be considered adequate.
 Return On Capital Employed (ROCE) : Not to be made applicable
for restructuring of Micro Enterprises.
 Internal Rate of Return
(IRR) : Not to be made applicable for
restructuring of exposure MSE exposure.
RESTRUCTURING OF Medium enterprises (Cir 537/2013)
Debt Service Coverage Ratio (DSCR)- May be accepted upto
minimum 1.20, in exceptional cases upto 1, duly justifying the same.
Return On Capital Employed (ROCE) : Minimum of ROCE equivalent
upto 1% above the Bank’s 5 years Govt. Security Yield may be
considered adequate.
Internal Rate of Return (IRR) : No benchmark. Resonably acceptable level.
Gross Profit Margin: No benchmark. Resonably acceptable level
Pricing- Based on accepted projection of cash flows and viability
established, on a case to case basis, the rate of interest may be decided
by the RSA who are empowered to sanction the restructuring package.
The ROI on FITL may be fixed based on expected cash flow in terms of
financial ability established. In exceptional cases, the ROI on FITL may be
fixed at 0% or above.
ROI on WCRL and Term Loan/Working Capital facilities may be fixed
lower than that charged under normal circumstances, on case to case
basis, based on accepted cash flow & viability established.
Small enterprises: Promoters' sacrifice and additional funds brought by
them should be minimum of 20% of Bank's Sacrifice or 2% of the
restructured debt, whichever, is higher. The promoter's sacrifice should
invariably be brought upfront while extending the restructuring benefits to
the borrowers. (54/2013)
593/2013
FRAUD RISK MANAGEMENT POLICY OF THE BANK FOR THE YEAR
2013-14
 Branches have to report all cases of actual/suspected frauds
immediately on detection (within 24 hours) as per format to R&L
Section, CO.
 All fraud cases are to be reported to Police / CBI within 21 days of
their detection as per guidelines.
 For filing complaint with local police, branches/offices have to
necessarily refer to R&L Section of their respective Circle for
permission and guidance.
 For lodging complaint with CBI, Circle Offices have to obtain
permission from CMD by placing an Office Note through Vigilance
Section, Vigilance Wing HO.
REPORTING TO RBI:
Frauds involving Rs.1.00 Lakhs and above:Within 21 days from the date
of detection in prescribed Fraud Monitoring Report.
As per RBI guidelines, reports in respect of all fraud cases are to be
submitted to RBI in the prescribed format within 3 weeks of detection.
Delay in reporting of fraud cases by banks would be liable for penal
action prescribed under Section47(A) of Banking Regulation Act 1949
(cir 16/2011)
Frauds involving Rs.100.00 Lakhs and above.
 Should be reported to RBI within 7 day‘s time from the date of detection
by way of Special letter followed by reporting in prescribed Fraud
Monitoring Report.
Reporting of frauds as Collecting Bank.
 All such frauds are to be reported by the paying Banker of the
instrument.
 However in case of collection of instruments which are
genuine, but the amounts are collected for a person who is not the true
owner of the instrument the collecting Banker has to report the matter as
fraud.
 In case of collection of instruments where the amount has been credited
before realization and subsequently the instrument is found fake then the
collecting Bank has to report the matter as fraud.
Reporting frauds to police / CBI:
Financial frauds of the value of Rs.1,00,000/-(one lakh) and above but
less than Rs. 3.00 crore, which involve outsiders (private parties) &
bank staff, should be reported by Circle Office concerned to :
Senior Officer of the State CID/Economic Offences Wing of the
State concerned
Below Rs.1.00 lakh, above Rs.10,000: To Local Police Station by Branch
Below Rs.10,000/- : Refer to CO for taking decision of filing FIR or not
Reporting to CBI:
Cases of Rs.3.00 Crore and upto Rs.15 Crore where staff involvement
is prima-facie evident : Report to CBI (Anti Corruption Bureau)
Cases of Rs.3.00 Crore and upto Rs.15 Crore Where staff involvement
is prima-facie not evident : Report to CBI (Economic Offences Wing
All cases of Rs.15 Crores and above : Report to Banking Security and Fraud
Cell of the respective centres, which is specialized cell of the Economic
Offences Wing of the CBI for major bank frauds.
596/2013
INTRODUCTION OF NEW RECURRING DEPOSIT SCHEME -CANARA
DHANVARSHA
Deposit : Minimum amount per month: Rs 1000 and in multiples of Rs 100
thereof & Maximum Rs 1 Lac. Top up amount up to 10 times of the
installment (including regular instalment) can be deposited per month
Period : Minimum 1 year and in multiples of 3 months; Maximum 10 years
Special feature :
Flexibility of depositing additionala mount including regular installment up
to 10 times of regular instalments
made any number of times in a given month
597/2013
598/2013
599/2013
602/2013
603/2013
Clarifications from RBI on Basic Savings Bank Deposit Account (BSBDA)
 Branches are advised not to impose restrictions like age and
income criteria of the individual for opening 'Canara Basic Savings
Bank Deposit Account'.
 Total credits in such accounts should not exceed one lakh
Rupees in a year.
 Maximum balance in the account should not exceed fifty thousand
Rupees at any time.
 The total of debits by way of cash withdrawals and transfers will
not exceed ten thousand Rupees in a month.
 Foreign remittances can not be credited to Small Accounts without
completing normal KYC formalities.
 Small accounts are valid for a period of 12 months initially which
may be extended by another 12 months if the person provides
proof of having applied for an Officially Valid Document.
 There is no requirement for any initial deposit for opening a
'Canara Basic Savings Bank Deposit Account'.
 Beyond 4 withdrawal per month, any additional withdrawal in
CBSBD a/c attracts Rs.5/- per withdrawal.
Dairy Entrepreneurship Development Scheme (DEDS):Reopening of the
scheme
OBSERVANCE OF MICRO ENTERPRISES DAY ON 11.12.13
Minimum Five Loan Under Micro Enterprises to be sanctioned by
Each Branch
MODIFICATION IN NRI HOUSING LOAN SCHEME
Loans for purchase of flats under construction can also be considered
under the scheme subject to the following:
 Borrowers furnishing collateral security by way of mortgage of
alternate property or pledge /assignment of approved securities
equal to the loan amount -TO BE PERMITTED BY
RESPECTIVE SANCTIONING AUTHORITIES.
 Or Furnishing guarantee from a guarantor who is good for the
amount of advance and acceptable to the Bank -TO BE
PERMITTED BY NEXT HIGHER AUTHORITIES
Relaxation in granting Education Loans to students who are pursuing
in multiples
604/2013
637/2013
606/2013
607/2013
Higher Studies i.e., M.Tech, Ph.D in IITs /NITs /IISc, Bengaluru for
purchase of Laptop/Desktop PC.
 Education Loans to the students for pursuing studies
in IITs/NITs/IISc (who are from various states) for
purchase of Laptop up to Rs 50,000/- is permitted by
waiving the cap of 20% of tuition fees for other expenses.
LAUNCHING OF CANARA MSE SATKAR
 Purpose: To meet working capital needs and term loan
requirements for purchase of equipments required for setting up
Restaurants/Dhabas/Eateries/Mobile canteen/Fast Food Centres.
 SHG & JLG are not eligible.
 Quantum: Term Loan-85% of Project Cost, STL- Stock holding
required for maximum 7 days. Rural/Village- Max-Rs.2 lskh, Semi
Urban/Taluk HQ- Rs.5 lakh, Urban/Metro Centre- Rs.10 lakh.
Loan beyond Rs.10 lakh to be considered under normal MSME
scheme.
 Processing/ Upfront Fee- 50% of applicable charges.
 ROI: Base Rate+0.55
 CGMSE: AGF Debited to the loan account shall be reimbursed by
debit to General Charges.
 Repayment: TL- In 5 year by monthly instalments. STL- In 1 year
by monthly instalments.
 Godown Inspection: Half Yearly.
 Regulatory guidelines of Local authorities in respect of Food Act if
any, shall be necessarily followed. And/Or
 An undertaking shall be obtained from the beneficiaries under the
subject scheme for compliance of FOOD SAFETY NORMS
Banks have been instructed to replace PDCs with ECS mandate and all
the branches have been advised not to accept fresh PDCs/EMI cheques
and efforts shall be made to convert existing PDCs also by obtaining ECS
mandate from our borrowers, who do not maintain any CASA account with
us.
 Charges debited towards return of ECS mandate : At present
Rs.200/= +S.T. shall be debited automatically to the loan account of
the borrower
 Borrower shall be informed that returned ECS debit mandate would
be presented once again on 7 th day to enable the borrower to
arrange for required funds in his/her Bank account.
 If the ECS debit is returned for three consecutive months,
ECS mandate will be deactivated.
ISSUE OF EMV CHIP CARD - DEBIT AND CREDIT CARDS
 EMV stands for Euro, MasterCard and Visa. EMV is a venture of
these International Card Associations that aim to make usage of
Card payment system more secure
 All International Transactions with Credit and Debit Cards shall be
done with use of EMV Chip Card.
 For all Global Magstripe cards, a threshold limit of Rs. 30,000.00 per
day shall be applied for all overseas transactions
 Bank shall collect from customer, a Service Charge of Rs, 250/plus applicable Service Tax for every issue of EMV Chip Card
(Debit / Credit).
 Existing Credit Cardholders: The threshold limit of Rs, 30,000.00
shall be applicable for all Global Magstripe Credit Cards for all
International Transaction, per billing cycle.
611/2013
612/2013
SCHEME FOR REVIVAL OF HANDLOOM WEAVERS by waiver of
overdues under Working Capital and Term Loans of Individual
Weavers, Self Help Groups (SHGs), Joint Liability Groups
(JLGs), and Master Weavers-relaxation/Modification in Scheme.
 As per the guidelines, the Scheme will cover write off /
waiver of Direct loan made to Individual weavers, Self
Help Groups (SHGs), Joint Liability Groups (JLGs),
including Master Weavers by the "lending institutions",
subject to a maximum amount of Rs.50,000/- per
individual under all the above categories, comprising
100% of principal and 25% of interest overdue as on the
date of loan becoming Non Performing Asset (NPA) and
which continues to outstand as on 31.03.2010 and till
date.
 Margin Money Assistance at Rs.10000/- per weaver to individual
weaver, their self-help groups and joint liability groups.
 Concessional credit at 6% interest rate for 3 years from the date of
disbursal of the fresh loan extended by Bank to the eligible
handloom co-operative societies and individual handloom weavers
covered under RRR Package. The Maximum Interest subvention is
capped at 7%.
We have received a communication from CERSAI that collection of
charges for Satisfaction of Security Interest in CERSAI portal has been
waived with immediate effect as the same was withdrawn by Government
of India.
614/2013
Any priority sector wrong classification (that will include both (i) classifying
In eligible accounts under priority sector and (ii) not classifying eligible
accounts as priority sector) will be treated as misconduct on the part of
the employees who are responsible for such wrong classification and
appropriate action will be initiated wherever such lapses are observed /
reported.
617/2013
Interest Subvention Scheme on Short Term Crop Loans reiteration of guidelines on monitoring of end use of Crop Loans.
625/2013
Restructuring of SGSY as NRLM - AJEEVIKA - Interest subvention
scheme for the SHG credit during the year 2013-14 to the Public Sector
Banks, Regional Rural Banks and Co-operative Banks
 The Hon'ble Finance Minister in his budget speech for 2013-14
proposed to provide interest subvention to women SHGs who avail
loans upto Rs.3 lakhs at 7% per annum. The women SHGs will get
an additional subvention of 3% if they repay in time, reducing the
effective rate of interest to 4%.
 All women SHGs, comprising of more than 70% BPL or rural poor
members (rural poor as per the Participatory Identification
Process) are regarded as NRLM compliant SHGs. Such NRLM
compliant SHGs will be eligible for interest subvention to avail the
credit upto Rs.3 lakhs at the rate of 7% per annum on prompt
repayment
630/2013
634/2013
TDS & SERVICE TAX ON SERVICE CHARGES PAYABLE TO
BUILDERS & AUTOMOBILE DEALERS
 Permission was accorded to pay 0.25% of the housing loan amount
as service charges (subject to a maximum of Rs.50000/-) per loan
sanctioned, subject to certain conditions
 Permission was accorded to pay service charges of 1.00% of the
Vehicle Loan amount to the dealers and Rs.1000/- to Dealers'
Sales executives per loan for referring Car Loan proposal to our
Bank.
 Service charges payable to Builders for sourcing Housing Loan
applications and service charges payable to Automobile dealers
and their sales executives for sourcing car loan applications comes
under the purview of meaning "commission or brokerage" as per
Section 194H of Income Tax Act. Hence TDS needs to be effected
u/s 194H of IT Act @ 10%.
 However, if the aggregate of the amounts of such income credited
or paid or likely to be credited or paid during the financial year to
the account of, or to, the payee, does not exceed Rs.5000/-, no
TDS is required to be deducted.
INFORMATION TECHNOLOGY SECURITY POLICY & GUIDELINES
 Chief Information Security officer (CISO) will be Convenor of IT
Security Committee.
 IT Security Group, Risk Management Wing. Will coordinate the
work of IT Security Committee and assist in monitoring the above
standards
 CCTV / camera images should be retained for a period of 90
(ninety) days
 UPS should have a battery backup for a minimum period of 4
hours.
 The length of the password should not be less than eight
characters
 Reusing of password should not be allowed for the next 6 times.
 Replying to emails: Emails are preferably to be answered/
acknowledged within at least 8 working hours, but users must
endeavor to answer priority emails within 4 hours
 Email accounts not used for 90 days will be deactivated and
possibly deleted
 All emails received by the corporate e-mail IDs are to be
retained for minimum period of 30 days in mailbox. If a user has
sufficient reason to keep a copy of an email, the message must be
moved to the folder For archiving.
(8) characte
637/2013
642/2013
CANARA MSE SATKAR (PRIORITY) included in Cir 604/2013
MANDATORY LEAVE
 All members of the staff will have to compulsorily avail leave for at
least four continuous days in each calendar year against leave
standing to their credit and after obtaining regular sanction thereof
from the competent authority.
 The branch head / Manager (Administration) shall ensure and
confirm that the password of the employee thus going on leave has
been disabled during the period of leave.
647/2013
Hotlisting Canara bank Credit Cards by SMS Alert
 For Visa Credit Cards : The customer shall send the following SMS
from their registered mobile number to 575758
 For Master Credit Cards :The customer shall send the following
SMS from their registered mobile number to 5607060
Banker’s Account - Revised Guidelines
648/2013
 Bankers balance shall be maintained at minimum level stipulated by
respective banks with tolerance level of 10% on the upper side in
respect of banker's account maintained for clearing purposes
alone. For example, if the minimum balance stipulated is Rs 2.00
lakhs, balance in banker's account shall be maintained between Rs
2.00 lakhs and Rs 2.20 lakhs.
650/2013
651/2013
655/2013
660/2013
Policy for Sustainable Development & Corporate
Social Responsibility of Canara Bank-2013-14
 It is budgeted to spend 2% of average net profits of the Bank
during the three immediately preceding financial years on CSR
activies
Net Banking Corporate - View/downloading of transactions
 The number of transactions that can be viewed/ downloaded
under Account Activity option of Corporate Net Banking is
increased from 100 to 500 subject to a maximum period of six
months.

Net Banking facility to visually challenged persons
 Net Banking facility can be extended to visually challenged
persons under Net Banking Retail module. Branches to inform
the visually challenged customers that they can use our Net
Banking facility by using Braille key board and screen reading
software
JOINT ACCOUNTS - ATM CASH WITHDRAWAL FACILITY
 DIT Wing, HO has informed that joint operation in ATMs using two
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662/2013
666/2013
cards with two distinct PINs, for withdrawal of cash, has been
enabled, for all Joint Accounts with operation condition "Jointly"
operated by two joint holders.
ATM Cash withdrawal facility for Joint Account holders with
operation condition "Jointly".
Joint Account holders will be issued ATM Debit Cards individually.
One of the account holders is designated as ‘Primary' account
holder and the other will be ‘Secondary' account holder.
The facility of Balance Inquiry, Mini Statement, PIN Change are
available for Joint Account holders individually on operation with
their respective cards.
Cards shall be issued in association with RuPay and shall be
enabled for domestic usage only
The Joint Account Cards can be used at CANARA BANK ATM
only.It can not be used in other Banks' ATMs.
The Joint Account Cards cannot be used at POSEDC/Internet
Implementation of New Central Sector Scheme of Ministry of MSME, Govt.
of India for Rejuvenation, Modernization and Technology Upgradation of
the Coir industry (REMOT Scheme of Coir Board) - Modifications
 Quantum of loan - 100 % of the project cost.
 Promoter’s Contribution : 5% of the project cost to be transferred
to Sundry Liabilities on the same day of disbursement of loan.
 Promoter’s Contribution : 5% of the project cost should be the
demand on very next working day of the loan disbursement.
 Promoter’s contribution held in Sundry Liabilities to be
appropriated to the Term Loan account on the very next
working day of disbursement of term loan.
(a) Modification in scheme guidelines of Canara Vehicle Loan Scheme (b)
Salary tie-up defined for retail loans
 FOUR WHEELER: Salary tie up to be ensured for loans to
salaried class. Salaried Individual should have a minimum
Gross salary of Rs.1.5 Lac
 However in exceptional cases where mandatory salary
tie-up cannot be ensured, Credit Approval Committee
headed by Circle Head is empowered to permit lowering of
minimum eligible quantum of gross salary from the
standard level of Rs.4.80 lakhs to Rs.3.00 lakhs.
 New Vehicles: A repayment period not exceeding 84
months from the date of grant of the loan may be
permitted
 Old Vehicles: 60 months repayment period.
 TWO WHEELER: New Vehicles repayment: 60 months
 Salaried Persons-Loan may be granted upto 80% of the total value
inclusive of invoice value, life tax, registration charges, insurance
premium and other accessories OR to the extent of 50% of their
annual net income in the immediate previous year, whichever is
less.
 Non Salaried: 75% of total value or 50% of their annual income.
668/2013
RATES OF INTEREST ON LOANS AND ADVANCES - REVISION
IN BASE RATE OF THE BANK W.E.F. 01.01.2014
BASE RATE WILL BE 10.20% p.a.
ROI ON EXPOSURES ABOVE 2.00 CRORE IS TO BE BASED ON
CREDIT RISK RATING (INTERNAL /EXTERNAL). ROI ON EXPOSURES
OTHER THAN RETAIL LOANS ABOVE 2.00 LAKHS UPTO 2.00
CRORES IS TO BE BASED ON THE SCORING NORMS
669/2013
REVISION IN RATES OF INTEREST ON LOANS AND
ADVANCES -REVISION IN BPLR OF THE BANK W.E.F.
01.01.2014
BPLR SHALL BE 14.45% P.A. - INCREASE FROM 14.20% TO 14.45 %
P.A.
2. MAXIMUM SPREAD OF 3.50% OVER
BENCHMARK PLR FOR PRICING