ORGANISATION & METHODS DIVISION Head Office: Mangalore

ORGANISATION & METHODS DIVISION Head Office: Mangalore

CONTENTS 1.0 DEPOSITS Point no. Particulars 1.1 Account Opening-Customer Identification 1.1.1 Identification 1.1.2 Introduction 1.1.3 Documents for opening of accounts 1.1.4 Identification of Customers other than Individuals 1.1.5. Limited Companies 1.1.6 Associations / Society / Clubs / Trusts 1.1.7 Hindu Undivided Family (HUF) 1.1.8 Proprietorship Concerns 1.1.9 Partnership Firms 1.1.10 Interview of the prospective Customer 1.1.11 Interview of the introducer 1.1.12 Obtention of photographs of the prospective Account holder 1.1.13 Opening of NRI Account 1.1.14 Account Opening Form 1.1.15 Updation of customer identification data(including Photograph) 1.1.16 Conduct of new accounts 1.1.17 Letter of thanks 1.1.18 Address verification 1.1.19 Customer Profile 1.1.20 Flagging of new accounts 1.1.21 Accounts of Visually challenged (Blind etc.) Illiterate and mentally disabled persons 1.2 Servicing of Deposit Accounts 1.2.1 Cheque Book issue 1.2.2 Non-Cheque book SB accounts 1.2.3 Pass Books 1.2.4 Charges 1.2.5 Specimen Signatures 1.2.6 Statement of Account/ Pass book/ Duplicate passbook 1.2.7 Payment of cheque 1.2.8 High value transactions 1.2.9 Debit only through cheques 1.2.10 Change of address 1.2.11 Stop Payment of cheques 1.2.12 Withdrawal in account of illiterates 1.2.13 Issue of token 1.2.14 Cheques received for deposit 1.2.15 Collection of cheques/bills 1.3 Transfer of Accounts from one branch to another within bank 1.3.1 At place of the branch where account originally maintains. 1.3.2 At the place of the branch he prefers for transfer of account 1.3.3 Submission of Address proof on transfer of accounts

1.4 Closure of Accounts 1.4.1 In person 1.4.2 Deceased constituent's accounts 1.5 Duplicate Receipt 1.6 Standing Instructions 1.7 Inoperative Accounts 1.7.1 Operations and Closure 1.8 Overdue Deposits 1.8.1 Review of overdue deposits 1.8.2 Minimum period of renewal 1.8.3 Staff Accounts 1.8.4 Nomination 2.0 CREDIT MANAGEMENT 2.1 General instructions 2.1.1 Application form and check-list of documents 2.1.2 Preliminary scrutiny of loan application 2.1.3 New Business Group 2.1.4 Confidential Opinion 2.1.5 Due Diligence 2.1.6 Concurrent borrowings 2.1.7 Information on Group/ Associate concerns 2.1.8 List of defaulters 2.1.9 Margin 2.1.10 Borrowing Power 2.1.11 Rejection of application 2.1.12 Registrar of Companies (ROC) Search 2.1.13 Valuation of property & obtention of EC 2.1.14 Land and other immovable properties as collateral 2.1.15 Appraisal 2.1.16 Pre-sanction Inspection 2.1.17 Seeking Clearance for Sanction 2.1.18 Grid Mechanism 2.1.19 Control Return 2.1.20 Credit Sanction intimation 2.1.21 Documentation 2.1.22 Legal Audit 2.1.23 Pricing & Rating rationale 2.1.24 Compliance of sanction terms 2.1.25 End Use of Funds 2.1.26 Term Loan disbursement 2.1.27 Periodical verification of assets 2.1.28 Insurance of assets 2.1.29 Periodical Statements 2.1.30 Interest & Service Charges 2.1.31 Scrutiny of the account 2.1.32 Irregularity in accounts

2.1.33 Stock Statement 2.1.34 Unit inspection 2.1.35 Follow up 2.1.36 Review/Renewal 2.1.37 Revival of documents 2.1.38 Stressed Assets 2.1.39 Recall of loan 2.1.40 Recovery of loan 2.2 Bank Guarantees 2.2.1 Eligibility 2.2.2 Non-customers 2.2.3 Precautions 2.2.4 Advance Payment Guarantee 2.2.5 Deferred Payment Guarantee (DPG) 2.2.6 Guarantee not to be issued 2.2.7 Margin 2.2.8 Security 2.2.9 IBA format 2.2.10 Security Features 2.2.11 Counter Guarantee 2.2.12 Safety Measures 2.2.13 Cancellation before expiry 2.3 2.3 Letter of Credit 2.3.1 Basis for issuing a Letter of Credit (LC) 2.3.2 Rules relating to opening and operating LCs. 2.3.3 Legal provisions 2.3.4 Basic aspects to be observed while opening LCs. 2.3.5 Exchange/Trade Control aspects 2.3.6 Documents 2.3.7 Advising Bank 2.3.8 Confirming Bank 2.3.9 Negotiating Bank 2.3.10 Devolvement of LC 2.3.11 Crystallization of Bills 2.3.12 Amendment Rules 2.3.13 Precautions 2.3.14 Letter of Credit (Beneficiary) 2.4 Priority Sector 2.4.1 Application received cum disposal register 2.4.2 Collateral Security 2.4.3 Achievement of targets under Agriculture, MSEs, other priority and Govt. sponsored schemes 2.4.4 Genuineness of borrowers 2.4.5 Acknowledgement to Gold Loan borrowers 2.4.6 Coverage of customers under financial inclusion. 2.4.7 Accounts opened by B.C. Model 2.4.8 Charges on financial inclusion transactions 2.4.9 GOI and RBI guidelines on financial inclusion

3.0 RETAIL LENDING 3.1 CORP SCHEMES 3.1.1 Declarations 3.1.2 Product Innovation 3.1.3 Loan information 3.1.4 Loan application 3.1.5 Interest Rates 3.1.6 Loan charges 3.1.7 Sanctioning Terms 3.1.8 Documentation 3.1.9 Operation in accounts 3.1.10 Information Secrecy 3.1.11 Grievance Redressal 4.0 FINANCIAL MANAGEMENT 4.1 CASH DEPARTMENT 4.1.1 Strong Room 4.1.2 Keys 4.1.3 Custody of Currency Notes 4.1.4 Mutilated Notes 4.1.5 Forged Notes 4.1.6 Bank Cash Balance 4.1.7 Procedure 4.1.8 Shortage/e/Excess Cash 4.1.9 Intra-day verification 4.1.10 Cash verification 4.1.11 Rotation of Duties 4.1.12 Clean Note Policy 4.1.13 Cash Retention Limit and insurance cover 4.1.14 Remittance of Cash and valuables 4.1.15 Cash in transit and its insurance 4.2 HOUSE KEEPING 4.2.1 Suspense account 4.2.2 Sundry Deposit account 4.2.3 Inter-branch Reconciliation 4.2.4 Tax Payments 4.2.5 Local Bank Accounts 5.0 INFORMATION TECHNOLOGY 5.1 CORE BANKING 5.1.1 User Access 5.1.2 User Types 5.1.3 User Creation 5.1.4 Access Control

5.1.5 Maker-Checker 5.1.6 Change of Password 5.1.7 Back up of data 5.1.8 Information Security 5.2 INTERNET BANKING 5.2.1 Precautions 5.3 Shopping online 5.3.1 On-Line opening of Time Deposits 5.4 Off-line Transactions 5.5 Cyber Café Security 5.6 Password 5.7 Mobile Banking-Usage 5.8 ATM/Debit Card 5.9 Using Credit Card 5.10 PROCUREMENT 5.10.1 Guidelines 5.10.2 Procedures 5.10.3 Reporting 5.11 DISPOSAL 5.11.1 Guidelines 5.11.2 Procedures 5.11.3 Reporting 6.0 RECOVERY 6.1 Broad Objectives 6.2 Methods of Recovery 6.2.1 Legal Action 6.2.2 Other measures 6.3 Compromise Settlement Policy 6.4 Sale of Non Performing Financial Assets to Banks/FIs and ARCs 6.5 Interest Concession in settlement of credit card NPA accounts. 7.0 BRANCH EXPANSION & SUPPORT SERVICES 7.1 Consideration for selecting the centres 7.1.1 Potential for CASA 7.1.2 IT/BT Centres 7.1.3 Identified SEZ/S M E Zones 7.1.4 Agriculture lending 7.1.5 Minority dominated Districts 7.1.6 Under-banked centres 7.1.7 Top 200 Centres 7.1.8 Geographical spread 7.2 Steps to be taken to ensure good customer service 7.2.1 Core Banking 7.2.2 Technology Products 7.2.3 Staff and Stationery

7.2.4 Customer Information materials 7.2.5 Standard Ambience 7.2.6 Publicity 7.3 Branch Authorisation 7.3.1 Opening of new branches / ATM/ CPC etc. 7.3.2 Shifting, Merger, Conversion etc. 7.4 Strong Room 7.4.1 Visibility 7.4.2 Specification 7.4.3 Maintenance 7.5 Safe Deposit Lockers 7.5.1 Identification 7.5.2 Security Deposit 7.5.3 Access and operations of the locker 7.5.4 Change of lock 7.5.5 Locker Keys 7.5.6 Checking of operated lockers 7.5.7 Recovery of rent 7.6 Procurement 7.6.1 Guidelines 7.6.2 Procedures 7.6.3 Reporting 7.7 Compliance 7.7.1 Instructions/Directions received from Govt/RBI and other authorities 7.7.2 Reporting 7.8 Safe Custody of Security Forms 7.8.1 Receipt/verification of security Forms 7.8.2 Stock of Security Forms 7.8.3 Joint custody of forms 7.8.4 Bank Guarantee and LC forms 7.9 Disposal of Assets 7.9.1 Methods 8.0 COLLECTIONS & PAYMENT SERVICES (CAPS) 8.1 FCS Operations by operating Branches 8.2 CCS Operations 8.3 Payment Products 8.4 Courier arrangement 8.5 Marketing 8.6 Research & Development 8.7 Management Information System (MIS) 8.8 I T related matters

9.0 GOVERNMENT BUSINESS 9.1 Type of business 9.2 Receipts 9.3 Pension Payments 9.4 Reporting of Transactions 10 BANCASSURANCE 10.1 Life Insurance Business and Bancassurance product sales 10.2 General Insurance 10.3 Mutual Funds 11. CORPORATE COMMUNICATION, PUBLICITY AND PUBLIC RELATIONS 11.1 Outdoor publicity (ODP) 11.2 Public Relations (PR) 11.3 Specialty Advertisement (SPADV) 11.4 Print & Electronic Media (PEM) 12. INSPECTION & AUDIT 12.1 Audit Policy 12.2 Purpose 12.3 Plan 12.4 Coverage 12.5 Process 12.6 Scanning & Rating 12.7 Rectification 12.8 Procedure at Controlling Offices 12.9 Audit by External Agencies 12.10 Training 13. CREDIT CARD 13.1 Commitments 13.2 Confidentiality 13.3 Recovery of Dues 13.4 Redressal of Grievances 14. MARKETING 14.1 Information on products 14.2 Communication 14.3 Products/Services

15. PERSONNEL ADMINISTRATION & HUMAN RESOURCES MANAGEMENT 15.1 Personnel Administration 15.1.1 Rotation of Duties 15.1.2 Managerial autonomy for PSBs 15.2 Human Resources Management 15.2.1 Recruitment Policy 15.2.2 People Engagement Policy 15.2.3 Motivational Schemes 16. INVESTMENT & INTERNATIONAL BANKING 16.1 Foreign Exchange Transactions 16.1.1 Deposits 16.1.2 FCDL/FCTL/PCFC/EBR loans 16.1.3 Pre/Post shipment credits 16.1.4 Sale of Foreign Currency 16.1.5 Clean Remittance 16.1.6 Import Bills 16.1.7 Traveler's Cheque (TC) and Foreign Currency Notes (FCN) 16.1.8 Export Bills 16.1.9 Forward Contracts 16.1.10 Import Letters of Credit 16.1.11 Crystallization of Bills (Import) 16.1.12 SWIFT 16.2 Treasury Operations-Foreign Exchange 16.2.1 Functional Separation 16.2.2 Place of Dealing 16.2.3 Characteristics required in the Dealers 16.2.4 Training of Dealers 16.2.5 Trading Deals 16.2.6 Overnight and Daylight limits 16.2.7 Functions of Mid-Office 16.2.8 Managing Risks 16.2.9 Documentation to reduce Legal Risks 16.2.10 Recording of Deals 16.2.11 Stop-Loss Limits 16.2.12 Strict Confidentiality 16.2.13 Other duties of the Dealer 16.2.14 Compulsory Leave 16.2.15 Code of Conduct for Dealers 16.2.16 Concurrent Audits and Statutory Audits 16.2.17 Written Contingency Plans 16.2.18 Strict Compliance with RBI guidelines in the following areas 16.3 Treasury Operations-Rupees 16.3.1 Investments 16.3.2 Functional Separation

16.3.3 Place of Dealing 16.3.4 Mid-Office 16.3.5 Regulations 16.3.6 Targeted Returns 16.3.7 Documentation to reduce Legal Risks 16.3.8 Recording of Deals 16.3.9 Concurrent Audits and Statutory Audits 16.3.10 Cut-Loss levels 16.3.11 Overshooting of limits 16.3.12 Contingency Plans 16.3.13 Sub-Limits for Brokers 16.3.14 Strict Confidentiality 16.4 Policy for Trading in Central Government Securities 16.4.1 Risk Management Systems in banks guidelines circulated by RBI 16.4.2 Ceiling for Risk positions 16.4.3 Risk control & Risk Management 16.4.4 Counter party limits 16.4.5 Mid-office functions and monitoring 16.4.6 Defeasance Period 16.5 Equity Investment 16.5.1 Equity Investments and total outstanding positions 16.6 Policy on Derivatives 16.6.1 Derivatives 16.6.2 Cut-Loss levels 16.6.3 Know Your Customer 16.6.4 Notional Amounts 16.6.5 Policy for Hedging 16.6.6 Contracting parties and counter party limits 16.6.7 Risk Disclosure statement 16.7 Prudential guidelines on Bank's investment in Non-SLR securities 16.7.1 Non-SLR Securities 16.7.2 Market Repos with counter parties other than RBI 16.8 Code for Corporate Disclosure Practices for Prevention of Insider Trading in the Securities of CORPORATION BANK 16.8.1 Investment Policy 16.8.2 Parameters set by ALCO 16.8.3 Statutory prescriptions 17. SECURITY DIVISION 17.1 CCTV Surveillance 17.2 Table top note sorting machines

18. CUSTOMER SERVICE DIVISION 18.1 Customer Complaints and resolution of Grievance 18.2 Time frame for resolution of Grievance. 18.3 Nodal Officer and other designated Officials to handle complaints 18.4 MITC 19. OFFICIAL LANGUAGE DIVISION 19.1 Implementation of Official language Policy in Bank 19.2 Official language implementation & Information Technology 19.3 National Objective and Customer facilitation 20. LEGAL SERVICES DIVISION 20.1 Empanelment of Advocates 20.2 Settlement of Death Claims 20.3 Seeking Information under RTI act 20.4 CERSAI (Central Registry)

DEPOSITS 1.1 Account Opening - Customer Identification - Know Your Customer (KYC) Norms 1.1.1 Identification Submission of proper KYC document is a pre-requisite at the time of opening the account and at periodical intervals. 1.1.2 Introduction For opening SB Accounts (including Corp Classic/NRESB/NROSB accounts), introduction is not required. However, any one document each towards identification and address proof, as prescribed at 1.1.3 below & photo shall be submitted at the time of opening the account. Weaker Sections of the Society are deprived of banking facility due to their inability to submit identity/address proof. Such Sections of the Society can open the accounts under 'Corp Pragathi SB account so that vast sections of population can have access to Banking services to achieve greater financial inclusion [Small accounts]. 1.1.3 Documents for opening of accounts However, there are certain limitations in respect of these accounts i.e. total credit in a year should not cross Rs.1 lakh and balance should not exceed Rs.50,000/=. No foreign remittance is received in the account and monthly transactions do not exceed Rs.10, 000/=. 1. Identity Proof: 1. Passport, 2.PAN card, 3. Voter s Identity Card, 4. Driving licence, 5. Job card issued by NREGA duly signed by an officer of the State Government(For Small Accounts), 6.The letter issued by UIDAI containing details of name, address and Aadhaar number, 7. Identity card (subject to the bank s satisfaction), 8. Letter from a recognized public authority or public servant verifying the identity and residence of the customer to the satisfaction of bank, 9. Government/Defence ID card, 10. ID cards of reputed Public Sector employers, 11. Pension Payment Orders issued to the retired employees by Central/State Government Departments, Public Sector Undertakings. 12. Photo ID cards issued by Post Offices, 13. Photo identity cards issued to bonafide students by a University, approved by the University Grants Commission (UGC) and/or an Institute approved by All India Council for Technical Education (AICTE), 14. Photo identity issued by any public authority having proper record of issuance of identity proof which is verifiable from records, 15. Ex-Servicemen Card with photograph, 16. Bar Council/Medical Association /ICAI /ICWAI/ICSI Card with photograph, 17. Student Identity Card with photo issued by reputed colleges with validity during the course period, 18. Defense Dependent s Card with photograph, 19. Married woman identity proof with maiden name, if supported with a verified true copy of marriage certificate, 20. Credit card with photo together with statement of such card, not more than three months old, 21. Registered Property document with photo identity, 22.Arms License issued by State / Central Government of India,

23. Freedom fighter s pass issued by Ministry of Home Affairs, Government of India with photograph of applicant, 24. Employee State Insurance Card (ESIC) with photograph supported by latest month s pay slip. 26. Talati / Patwari (a local govt. official) attestation by way of putting rubber stamp and signature. Gram Sarpanch / Mukhiya attestation by way of putting rubber stamp and signature (For Small Accounts) 2. Address Proof: 1. Ration Card, 2. Electricity Bill, 3. Telephone Bill, 4. Bank account statement, 5. Letter from employer (to the satisfaction of the Bank), 6. Letter from any recognized public authority (to the satisfaction of the Bank), 7. Credit Card Statement- not more than 3 months old, 8. Income/Wealth Tax Assessment Order, 9. Letter from Public Sector employer, 10. Letter from any recognized public authority having proper and verifiable record of issuance of such certificates, 11. Voter ID Card (only if it contains the current address), 12. Pension Payment Orders issued to retired employees by Government Departments/Public Sector Undertakings, if they contain current address, 13. Copies of Registered Leave & License agreement/sale Deed/Lease Agreement, 14. Certificate and also proof of residence, incorporating local address as well as permanent address, issued by the Hostel Warden of the University/Institute, where the student resides, duly countersigned by the Registrar/Principal/Dean of Student Welfare. Such accounts shall however, be required to be closed on completion of education/leaving the University/Institute provided the constituent does not give any other acceptable proof of residence to the Bank, 15. For students residing with relatives, address proof of relatives, along with their identity proof, can also be accepted provided declaration is given by the relative that the student is related to him/her and is staying with him/her, 16. In respect of officials of Central/State Governments and Public Sector undertakings, who are low risk customers for Bank, Branch Heads may verify the photo/identity and confirm residential address of such officials from independently verifiable sources, to their satisfaction, and permit opening of accounts. This facility is extended only to the Gazetted officers of Central/State Government and Senior Management and above functionaries of Public Sector Undertakings, 17. Latest telephone bills from any telephone service providers and mobile service providers not more than 2 month old, postpaid, 18. Consumer gas connection card/book/pipe gas bill, 19. Certificate from ward/equivalent rank officer, maintaining election roll certifying address of the applicant, 20. Post Office Savings Pass Book, 21. Domicile Certificate with communication address and photograph, 22. Certificate by Village Extension Officer (VEO) / Village Head or

equal or higher rank officer. Branch to confirm the authenticity of the certificate and that it has been issued by the person who is holding the said office, 23. Court divorce order Marriage annulment order issued by Court. Note: If the address available in the Identity Proof submitted tallies with the address furnished in the AOF, there is no need to submit separate address proof. For dependents [Spouse, children, parents, brothers/sisters, etc.,], any one document under [1] plus any one document under [2] of the person with whom they claim living, along with a declaration by the person confirming their stay with him/her. Any one document each towards identity proof and address proof shall be produced in original and photo copies of these documents are submitted to the branch along with originals for verification. 1.1.4 Identification of customers other than individuals 1.1.5 Limited Companies Documents Required: (i) Certificate of incorporation and Memorandum & Articles of Association, (ii) Resolution of the Board of Directors to open an account and identification of those who have authority to operate the account, (iii) Power of Attorney granted to its managers, officers or employees to transact business on its behalf, (iv) Copy of PAN allotment letter, (v) Copy of the telephone bill. 1 1.1.6 Associations/ Society/Clubs (i)certificate of registration, if registered, (ii)power of Attorney granted to transact business on its behalf, (iii) Any officially valid document to identify the trustees, settlers, beneficiaries and those holding Power of Attorney, founders / managers / directors and their addresses, (iv)resolution of the managing body of the foundation/association, (v) Telephone Bill. Certified Copy of the Trust Deed, Original Certificate of Registration Trusts under the Public Trusts Act and the up to date list of Trustees[to be updated every year] 1.1.7 HUF Account Opening form to be signed by the Karta and all Co-Parceners and wives of deceased Co-Parceners. Joint Hindu Family Letter ID 303. Identity proof and address proof, PAN card.

1.1.8 Proprietorship concerns In case of accounts of proprietorship concerns, apart from following the extant guidelines on customer identification procedure, the following documents shall be submitted while opening the accounts in the name of a proprietary concern:- i) Proof of the name, address and activity of the concern, like registration certificate in the case of a registered concern), ii) certificate/license issued by the Municipal Authorities under Shop & Establishment Act, iii) Sales and Income Tax Returns, iv) CST/VAT Certificate, v) Certificate/registration document issued by Sales Tax/Service Tax/Professional Tax Authorities, vi) License issued by the Registering Authority like Certificate of Practice issued by Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food & Drug Control Authorities, etc. vii) Registration/licensing documents issued by the Central Govt. or State Government Authority/Department. viii) IEC (Importer Exporter Code) by DGFT as an identity documents. ix) Copy of the Pan card of the proprietor x) The complete Income Tax return (not just the acknowledgement) in the name of the sole proprietor where the firm s income is reflected, duly authenticated/acknowledged by the Income Tax Authorities. xi) Utility Bills such as electricity, water and landline telephone bills in the name of the proprietary concern. Any of the above two relevant documents with PAN Card of the proprietor would suffice and the documents should be in the name of the proprietary concern. 1.1.9 Partnership Firms Registration certificate, if registered, (ii) partnership deed, (iii) Power of Attorney granted to a partner or an employee of the firm to transact business on its behalf, (iv) Any officially valid document identifying the partners and the persons holding the Power of Attorney and their addresses (v) Telephone bill in the name of firm/partners. Opening accounts of As per the Notification of RBI, all Legal Entities shall declare the Legal Entities 1.1.10 Interview of the prospective Customer Beneficial Owner at the time of opening their accounts. The prospective Customer will be interviewed without haste by the Branch Head/In Charge or the Officer In Charge, to ascertain the purpose of opening the account, background, source of funds, nature of transaction that would be routed,etc.

1.1.11 Interview of the Introducer 1.1.1.12 Obtention of Photographs of the Prospective A/c Holder 1.1.13 Opening of NRI Account 1.1.14 Account Opening Form. 1.1.15 Up-dation of Customer Identification Data [including photograph ] 1.1.16 Conduct of New Accounts Wherever possible and whenever the introducer comes in person, the branch will be interviewing to ascertain his/her Association with the person he/she is trying to introduce, his/her knowledge about the whereabouts and the financial position of the person he/she is introducing, since how long he/she knows him/her, responsibilities of introduction, etc. For all accounts, two passport size photographs of each of the account holders who are authorized to operate the account are to be submitted exception: Local Bodies/Authorities & Government Departments. The specified Account Opening Form is exhaustive and includes the list of documents to be submitted and the procedure to be followed in case of face-2-face & non face-2-face account opening by nonresidents. Customer has to fill all the columns in the account opening form before submitting the same for opening the account. RBI guidelines stipulate up-dation of Customer Identification Data (Customer Profile, address/identity proof & photo) at periodical intervals. It is the responsibility of customers to submit the information, as and when called for by the branch. If the information called for is not received, the branch reserves the right to freeze the account, till submission of the documents. The branches will not entertain the request for collection of Back dated cheques/dds in newly opened accounts, unless the branch is satisfied with the reason for such collection. 1.1.17 Letter of Thanks By way of due diligence, Bank will send the Welcome Kit containing any or all of the following to the address furnished by the account holder, such as: Pass Book, Cheque Book, Welcome Letter, Debit Card, Internet Pin, 1.1.18 Address Verification Change of Address 1.1.19 Customer Profile etc and a thanks giving letter to the introducer. If either of the communication is returned UNDELIVERED, the matter needs to be pursued thoroughly. As per the KYC norms Branches will obtain independent confirmation of the account holder in all cases by personal visits/by sending Regd. with Ack due letters to the address provided by the customers in the account opening form and in some necessary cases through Due Diligence Agency to a limited extent [mostly for Current Accounts only]. Whenever a cutomer changes his address furnished to the branch, the changed address is to be furnished to the Bank within 14 days of change of address. Customers are required to provide complete profile such as nature of activity, Income, Parentage, Contact details, PAN, Phone/Cell Nos. date of birth, educational qualification etc and same should be recorded in the Master Data Sheet and submitted for verification of concerned Official of the Branch which will be kept as permanent records.

1.1.20 Flagging of New Account 1.1.21 Accounts of Visually Challenged (Blind etc.,), Illiterate and Mentally disabled persons. Bank will issue first cheque book for the newly opened accounts after stamping the same with a seal bearing the words New Account" for easy identification by the Bank officials. At times, Visually Challenged (Blind etc,.) persons may approach branches for opening Savings Bank accounts to be operated either singly or jointly with another person or persons. Even though there is no legal bar against Visually Challenged (Blind etc,.) persons entering into contracts or for that matter, opening accounts, there are certain risks, enumerated below, involved while opening and allowing operations in such accounts. The terms and conditions for opening the account may be intentionally misrepresented to the Visually Challenged (Blind etc,.) person intending to open the account by a third person having vested interests. The Visually Challenged (Blind etc,.) person may not have the ability to sign consistently. Visually Challenged (Blind etc,.) persons have to depend on others for effecting transactions and they are extremely vulnerable to being cheated by others and more so because they are unable to verify for themselves the correctness of entries made in the pass book. A Visually Challenged (Blind etc.) person may dispute his signature or a genuine transaction effected in his account on a future date. He may also plead ignorance of the.rules of Business. Opening of the Account The Visually Challenged (Blind etc.) person intending to open a Savings Bank account should personally call on the Bank for opening the account either singly or jointly with any other person. At the time of opening the account, the.rules of Business and other terms and conditions for opening and operating the account should be read out and explained to the Visually Challenged (Blind etc.) person by an Officer or the Branch Manager in the presence of a witness known to the Bank. The signature of the witness should be obtained on the Account Opening Form or on a sheet of paper attached thereto, confirming this. As a Visually Challenged (Blind etc.) person may not be in a position to sign consistently, a thumb impression of the Visually Challenged (Blind etc,) person should be obtained in addition to his signature, on the Account Opening Form. The signature of the witness should also be obtained on the AOF. Two photographs of the Visually Challenged (Blind etc,) people should be obtained and a copy each should be affixed on the Account

Opening Form and Pass Book. The signature or the left / right hand thumb impression of the Visually Challenged (Blind etc.) person should be obtained on each of the photographs and should be duly countersigned by the Officer / Branch Manager. The fact that the account holder is a Visually Challenged (Blind etc,.) person should be clearly marked, preferably in red ink, on the Account Opening Form. Operations in the Account Visually Challenged (Blind etc,.) persons may be allowed to operate their accounts on their own in cases where the Branch Manager is satisfied about the capacity of the person to operate the account himself. Wherever there is an inconsistency in the signature of the Visually Challenged (Blind etc,.) person, his left / her right hand thumb impression should also be obtained in addition to the signature. Considering the merits of the case, branches may allow at their discretion, the next of kin of a Visually Challenged (Blind etc,.) account holder to operate the account as a representative of the Visually Challenged (Blind etc,.) person. However the necessary precautions such as obtaining a letter of mandate, and duly explaining the provisions of the letter to the account or as a better alternative, getting a Power of Attorney are required. Cheque books need not be issued to Visually Challenged (Blind etc,.) account holders. However in exceptional cases, the Branch Manager may consider issuing cheque books. For withdrawing money, the Visually Challenged (Blind etc,.) person should call personally on the Bank. However, if he is incapacitated or where the circumstances warrant it, the Branch Manager may authorise payment of cash to a third party also, after satisfying himself with the genuineness of the transaction. Cash payments to a Visually Challenged (Blind etc,.) person should always be made in the presence of a person known to the Bank who should be asked to sign the instrument as a witness to the transaction. While such witnesses should preferably be customers of the Bank, an official of the Bank other than the cashier or the officer authorising the payment should also sign as a witness. The Pass Book should always be brought by the Visually Challenged (Blind etc,.) person while making a withdrawal and the entries made

and the balance outstanding should be read out to the customer in confidence. Visually Challenged (Blind etc,.) persons should not issue third party cheques. An undertaking letter prescribed by the bank shall be obtained. Cash deposits should be received in the presence of a witness (a customer or official of the Bank other than the cashier receiving payment). The amount deposited should be entered in the Pass book and should be confirmed to the Visually Challenged (Blind etc,.) person orally. ILLITERATE PERSONS While opening Savings Bank accounts in the names of illiterate persons, it should be ensured that the account is properly introduced. In addition to the introduction, a declaration in the following format should also be obtained from the introducer: The contents of the account opening form and rules of the Bank regarding opening of Savings Bank Accounts in force for the time being, have been explained to the depositor and fully understood by him/her and he/she has affixed his left hand/her right hand thumb impression hereunder in my presence in token thereof. Introducer's Signature Left/Right Thumb Impression of the depositor The thumb impression of the illiterate depositor should be taken on the Account Opening Form in the presence of the introducer. It is a common practice that whenever the thumb impression of a male is taken, it should always be the left hand thumb, while for a female; it should always be the right hand thumb. Below the thumb impression, it should be stated as to whether the thumb impression is that of the left hand thumb or the right hand thumb. Identification marks on the person of the depositor such as permanent scars or moles should be recorded on the Account Opening Form under the initials of the concerned Officer. Branches may open joint accounts in the names of illiterate persons with a literate person or with another illiterate person with suitable repayment instructions. Cheque books are not be issued to illiterate depositors.

Operations in the Account The illiterate customer should be advised to call on the Bank personally for withdrawing money from his account. For this purpose, a declaration in the prescribed format should be obtained from the depositor, at the time of opening the account. For the purpose of withdrawal, the depositor should be required to attend in person along with a respectable witness known to the Bank. But such witness need not necessarily be the same person on all occasions. At the time of withdrawal, the depositor should affix his / her thumb impression on the withdrawal slip in the presence of the Manager / Officer and the thumb impression should be duly attested by such witness under his signature. The customer should be properly identified with reference to the thumb impression, photograph and other identification marks, if any, recorded with the Bank. Due care should be exercised while allowing withdrawals in the accounts of illiterate customers. It is advisable that all deposits into the account are exclusively in cash. Collection of cheques and other instruments in the account of an illiterate person may however be permitted in exceptional cases and under the discretion of the Branch Manager. Accounts of mentally challenged persons Savings Bank accounts may be opened in the names of individuals who are mentally disabled but of sound mind and who have attained the age of majority. Accounts of mentally disabled persons may be opened after obtaining a Certificate from the Competent Registered Medical Practitioner certifying that even though the prospective client is mentally disabled, he/she is capable execution of documents and understand the nature of transactions. Banks may also rely upon the Guardianship Certificate issued either by the District Court under Mental Health Act or by the Local Level Committees under the Act for the purposes of opening /operating bank accounts. [Ref: Ho cir. 929/2007 dt.27.11.2007] Branches may also advise such persons to open the account along with another individual, who may be close relative and operate the account either jointly or severally.

1.2 Servicing of Deposit Accounts 1.2.1 Cheque Book Issue 1.2.2 Non-Cheque Book SB Account Branches may also advise such persons to appoint Power of Attorney holder for operation of the account. Branches shall ensure to obtain doctor certificate from Competent Doctor as and when they get doubt about the deterioration of the health condition of the customer. Branches shall give proper guidance to the parents/relatives of the disabled persons so that they do not face any difficulties while opening/operating the account. As per the decision of Honorable High Court of Delhi, communicated by RBI, Branches shall display in a conspicuous place essential details about the facilities under the enactment (Mental Disabilities Act) the fact that the parties can approach the Local Level Committees, for the purposes of issuance of the certificate and that the certificate issued under the Mental Disabilities Act is acceptable; and the details of the Local Level Committees in that area. The branch will be issuing the Cheque Book on the day of opening account itself. However, the first cheque book should be collected by the customer in person only against acknowledgement or will be sent by Registered Post Acknowledgement Due to the residential address, after completing the account opening formalities. Subsequently, cheque book will be issued against the requisition slip duly signed by the customer. The account holder should personally visit the Branch along with the Pass Book. Loose leaf will be issued to the account holder only against production of Pass Book. The Branch Head in respect of accounts held by visually impaired persons could make exception. 1.2.3 Pass Book After completing the account opening formalities, the branch will be issuing the Pass Book containing important details and the transaction details. 1.2.4 Charges Please refer Bank's Website for charges on cheque book, duplicate pass book, non-maintenance of minimum balance, etc. 1.2.5 Specimen Signatures 1.2.6 Statement of Account/Pass Book/Duplicate Pass Book Bank will ensure to collect the Specimen Signatures of the newly opened accounts and same are Scanned and tagged to the accounts on the same day. Customers will be issued the Statement of account/pass book and same will be issued/updated, properly and promptly. Duplicate Statement of Accounts/ Pass Book is issued to the customer only against a written request after collecting the charges prescribed. 1.2.7 Payment of Cheque Cheques are to be paid in due course in accordance with Sec 10 of NI Act. However, Banks will take extreme care while making payments of the bearer cheque especially for Rs.10,000/- and above and in case

1.2.8 High Value Transactions 1.2.9 Debit only through cheques of any discrepancy/suspicion, the Bank will enquire with the drawer discretely before making payment. In case of material alteration, close scrutiny of the authentication will be carried out, subjecting the cheque for examination under UV lamp and adhering to the prevailing guidelines of the Bank issued from time to time. A separate register is maintained/in the system to enter cash deposit/withdrawal of Rs.10 lakhs or more as per RBI/HO guidelines. Issue of DD/TT/PO/RTGS/NEFT for Rs.50000/- and above will be issued against debiting of customers account or against cheques. [as per the income tax rules] Bank will not permit to debit account/s other than by way of cheques, except in case debiting of interest, charges, taxes, premium, standing instructions, ECS etc. as per the instructions of the customer. 1.2.10 Change of address Bank will record any request for change of address which must be given in writing by the customer along with the copy of proof of address [along with original for verification]. A communication acknowledging and for having changed the address will be sent to the customer to both the new and old addresses. 1.2.11 Stop Payment of Cheque 1.2.12 Withdrawal in Account of Illiterates 1.2.13 Issue of Token Any request for stop payment of the cheque must be submitted in writing and in duplicate. Same will be acknowledged by the Bank officials after verifying and ensuring the following points: A] The signature of the customer in the request letter B] Date of the letter [not pre-dated] C] Spot Verification in the system whether the cheque in question remains unpaid. If already paid, the details will be recorded on the request letter and returned to the customer/his representative. D] If not paid, date stamp will be affixed on both the copies of the letter, and time of receipt will be recorded. E] After ensuring entry in the System, copy of the letter duly acknowledged by Bank official and handed over to the customer/his or her representative The concerned person should visit the branch personally along with the Pass Book. After verifying identity of the customer, thumb impression is obtained on the cheque and, the amount of withdrawal will be informed to the customer. Token/s will be issued after ensuring that the cheque is in order, adequate balance available, the presenter has been identified. 1.2.14 Cheques received for deposit 1.2.15 Collection of Cheques/Bills Receipt of Clearing Cheques will be acknowledged by way of branding with special crossing stamp and clearing stamp of the branch on instruments by the Official of Bank.. Branch will ensure to dispatch Cheques/Bills along with schedules and realization advices at the destination Branch/Office.

1.3. Transfer of Account from one branch to another within Bank. 1.3.1. At place of the Customer can submit the necessary papers to the Branch along with branch where a request letter for transfer of account to a branch preferred by him. account originally While doing so, he should surrender the balance of cheque leaves, if maintains. any and ATM card at the Base branch. Customer shall ensure that no cheque already issued pending for payment before requesting for transfer. He can keep the pass book as identity to show at the transferee branch. 1.3.2. At the place of the branch he prefers for transfer of account After lapse of a week, customer may approach the branch where he sought for transfer shall make an enquiry about the transfer of his account by showing old pass book. On confirmation, customer shall provide the attested copy of the address proof at the new place and complete the necessary formalities at the transferee branch and can obtain cheque book, 1.3.3 Submission of Address proof on transfer of accounts ATM Card etc., As per RBI notification, the customers are entitiled to open account on transfer on the basis of declaration that they shall submit the proof of changed address within 6 months from the date of opening the account. 1.4. Closure of Accounts 1.4.1. In person Customer can approach the branch where he maintains his account and request for closure of the account with a request letter furnishing the reasons there-for to the Branch. Further, customer have to surrender the unused cheque leaves and ATM card to the branch. He should ensure that no cheques already issued, pending for payment before seeking for closure of account. 1.4.2. Deceased constituent s accounts Nominee/Legal hairs of the deceased account holder have to approach the branch with necessary documents of proof of death of the account holder, along with copy of proof of personal identity for settlement of claim. As per the procedure, customer has to submit claim papers with the relevant required documents to the Branch for settlement of claim. Once claim is settled he may opt to continue the deposit/account or close and receive the amount lying in the name of the deceased subject to completion of all legal formalities. 1.5. Duplicate Receipt If the original deposit receipt is lost or misplaced by the Customer, he can approach the branch where he has opened the deposit a/c and make a formal request for issue of duplicate receipt subject to submitting the necessary Indemnity Bond and other formalities required in this regard. Customer will bring to the notice of the branch if the original is found at a later date and surrender the same. 1.6. Standing Instructions. Standing instructions can be submitted in writing at the base branch only, where the customer originally operates/ maintains his own account. Standing instructions can be between the branches of the Bank, from one account to another. Customer will have an option to cancel the standing instruction already given. Customer will ensure to provide sufficient balance

1.7 Inoperative Accounts 1.7.1 Operations & Closure 1.8 Overdue deposits 1.8.1 Review of Overdue Deposits 1.8.2 Minimum Period of Renewal before submitting standing instructions in his account. Branch will not be responsible for non-performance of standing instruction/s, if account holder has not maintained sufficient balance in his account. Operations in inoperative accounts will be allowed after following the necessary procedures by the Officials of the Bank in this regard. For Closure of the account on genuine reasons, Customers can approach the Branch Head, for closing inoperative accounts. As per the directions of RBI, Bank transfers all matured Term Deposits through a program run by the branches, before sign-off every day, except overdue Janata Deposits and already lien noted deposits, if any in the branch. These deposits will be transferred manually. Effective from 14.7.2010, Bank put a system that will automatically renew all the matured term deposits on the 14th day from due date, for the period originally opted by the depositor at the time of opening of the deposit, except following types of deposits. 1. Lien noted/freezed Deposits in the Branch. 2.Recurring Deposits (RD) and Flexi RD (FRD) 3.Janata Deposits (JD) 4.Deposits held under Tax Saver Deposits Scheme (TSFD/TSKCC/CTSKC) Further old outstanding accounts under Overdue Deposits will be reviewed periodically once in a month by Branches and attempts are made to contact the depositor in their latest available addresses so as get the same renewed. To earn interest for overdue period Customer has an option to renew the Overdue deposit for a further period of 15 days [minimum] from the date of renewal. However, Overdue Deposits matured on or after 01.08.2011, will earn prevailing SB interest. rate [at present 4.5%] for the overdue period, if customer is not inclined to renew the Overdue Deposit for further period. Bank ensures to monitor Staff accounts, periodically to observe any abnormal transactions. 1.8.3 Staff Accounts 1.8.4 Nomination Every Customer can avail/opt for Nomination/cancellation/variation facility for their SB, Current & Term Deposit accounts in the Branch.

2.1 General instructions 2.1.1 Application Form and Checklist of documents 2.1.2 Preliminary scrutiny of loan application 2.1.3 New Business Group 2.1.4 Confidential Opinion 2. CREDIT MANAGEMENT Proper Application Form is being provided to the prospective customers along with an exhaustive checklist of documents for the type of loan the customer is seeking. On receipt of duly filled application form from the prospective customer, it being entered in the Loan Application Recd. & Disposed Register. Preliminary scrutiny is done to ensure compliance with KYC norms and for prima facie acceptability of the proposal. Fresh credit proposals of Rs.12 crore and above to be cleared by the New Business Group (NBG) at Head Office, before considering the same. Confidential opinion pertaining to borrower/ co-obligant / proprietor/ partner/ director/ trustee/ guarantor, etc. are obtained from their existing banker/s. Further, such opinion are obtained annually thereafter. 2.1.5 Due Diligence Steps are taken to conduct Due Diligence Exercise 2.1.6 Concurrent borrowings 2.1.7 Information on Group/ Associate concerns Confidential Opinion is being sought from the customer's existing banker, if customer is already enjoying credit facility/ies with other bank/s. Information about all associate concerns/ group companies, its financial statements on common date and opinion from its existing banker/s are obtained. 2.1.8 List of defaulters Reference is being made to the list of defaulters issued by RBI/ CIBIL/ ECGC to ascertain whether the applicant/ partner/ director/ borrowers/ co-obligant/ guarantors are defaulters to any financial institution. 2.1.9 Margin Source of prescribed margin is ascertained 2.1.10 Borrowing Power Partnership Deed, Memorandum/Articles of Association, Trust Deed and any other relevant documents are verified; so as to ensure that there shall be no restrictions placed for availing bank credit. 2.1.11 Rejection of Application 2.1.12 Registrar of Companies [RoC] Search 2.1.13 Valuation of Property & obtention of EC If credit facilities applied for, are wholly or partially rejected, the reasons thereof be recorded in the Loan Application & Disposal Register and same shall be informed to the party. Wherever, the party belongs to SC/ ST or proposal pertaining SSI, prior permission of the Zonal Head is being obtained for the rejections. For corporate accounts, initial search with RoC is carried out. registering Bank's charge, periodical search is ensured. Valuation Report on property charged to the Bank is obtained before sanction and once in 3 years thereafter. Further, Encumbrance Certificate [EC] is obtained periodically. On

2.1.14 Land and other immovable The Bank Officials shall visit the site to ascertain the correctness of the address and approximate value of the property based on the properties as current market price. Enquiries are made with the local people to collateral ascertain ownership/ occupancy of property. The legal report, as per bank's approved format, indicating a clear, absolute and marketable title, is obtained from the approved advocate. 2.1.15 Appraisal Appraisal of the proposal is carried out expeditiously, as per Bank's procedure. Borrowers are apprised of the need for Credit Rating Exercise, wherever applicable. The completed appraisal memorandums along with proper recommendations are put up to the sanctioning authority. All commercial credit proposals for limits of Rs.10 lakh and above are processed through "Risk Assessment Model" (RAM) at CCPC. 2.1.16 Pre-sanction Conducted unfailingly. Inspection 2.1.17 Seeking clearance for sanction Prior administrative clearance, wherever applicable, is being obtained from the competent authority. 2.1.18 Grid Mechanism The credit proposals are cleared by the Grid Committee so as place it before for clearance. 2.1.19 Control Return The Register of Sanction [Book No.87] will be submitted by the sanctioning authority to the next higher authority, on monthly basis. 2.1.20 Credit Sanction Intimation The applicant is being provided with a copy of the Credit Sanction Intimation [CSI] in duplicate and a copy of the same with signature of the applicant, having consented for the terms therein, will be obtained & held with the loan documents. 2.1.21 Documentation Security Documents complete in all respects will be executed by the borrower/s and wherever necessary common seal to be affixed on the documents. Copy of the documents executed by the borrower/s shall be given to the borrower/s on request 2.1.22 Legal Audit Legal Audit is being conducted as per Bank's procedure 2.1.23 Pricing & Rating rationale 2.1.24 Compliance of sanction terms Borrower shall be informed of the rating rationale and so as to give an opportunity to improve his rating to get the benefit in rate of interest. Loans are disbursed only on compliance of all terms and conditions of sanction. Specific prior approval is being obtained from the sanctioning authority for any waiver/ concession/ deviation in the terms of sanction, before making disbursement. 2.1.25 End use of funds End use of funds will be ensured through post-disbursement supervision. When the loan is for purchase of an asset, pay order / DD shall be sent directly to the supplier for full invoice amount, by obtaining margin money from the borrower. If reimbursement is being sought, prior permission is being obtained from the competent authority.

2.1.26 Term loan disbursement 2.1.27 Periodical verification of assets 2.1.28 Insurance of Assets Term loan is disbursed in stages as per the progress in implementation of the project. Engineer's/ Auditor's certificate wherever applicable will be obtained. Assets financed must be verified at regular intervals as prescribed in the terms of sanction. Asset charged to the bank is insured comprehensively for full market value, covering all related risks with the Bank Clause noted thereon. 2.1.29 Periodical statements 2.1.30 Interest and Service Charges 2.1.31 Scrutiny of the account 2.1.32 Irregularity in accounts Branch to obtain statements such as QIS/ SOD etc. periodically from the borrowers and the same is analyzed to initiate corrective steps, if any, required. Proper Interest rates are applied and service charges recovered. Accounts are scrutinized regularly to ensure satisfactory conduct. Irregularity, if any, noticed in the account is brought to the notice of the sanctioning authority and directions of the sanctioning authority on the above, is implemented. 2.1.33 Stock Statement Stock statement in the prescribed format is obtained periodically Stock statement is scrutinized and Drawing Power is arrived as per the laid down procedure and DP so arrived should be noted in the system Stock statement as on 31st March is obtained every year and it is compared with value of stock shown in audited Balance Sheet. Variance, if any has to get clarified from the borrower 2.1.34 Unit inspection The unit is inspected at regular intervals at uncommon dates. During the inspection, level of activity, value & quality of stock, the present condition and utilization capacity of the assets charged to Bank and its insurance coverage etc. are ascertained. The stock statement also is verified with the stock register for its correctness. If there is obsolete/ non-moving stock, same is being excluded while calculating drawing power. 2.1.35 Follow-up Sale proceeds/ bill transactions preferably are routed though our Bank. In case of consortium finance, pro-rata share of forex, nonfund and bill business is ensured. 2.1.36 Review/ Renewal Working capital advances are renewed every year. Term loan account is reviewed annually. 2.1.37 Revival of documents The branch to ensure that security documents are always kept in force. Efforts for revival are initiated at least 9 months before the expiry of the documents. 2.1.38 Stressed Assets Special Mention Accounts is identified periodically and appropriate corrective action is initiated.

2.1.39 Recall of loan If the applicant violates the terms and conditions of the loan despite requests to comply with the same and if the irregularity persists for long, recommendations for recall of loan are put up to the sanctioning authority without any delay. 2.1.40 Recovery of loan Before a loan is recalled, it is ensured that branch the security documents, charges etc are in order. A notice will be served to the borrower/ guarantor communicating Bank's decision to recall the loan. If borrowers/ guarantors do not repay the loan fully within the prescribed period and no other remedies are available for recovery, the legal action is initiated with the prior approval of the sanctioning authority. 2.2 BANK GUARANTEES 2.2.1 Eligibility Bank shall extend BG facility only in respect of borrower constituent. BGs may be granted in favour of other banks/fis/ other lending agencies to enable our borrower to avail additional credit facilities from other banks/ FIs/ lending agencies, provided our Bank assumes a funded exposure of at least 10% of guarantee exposure [5% in respect infrastructure projects]. 2.2.2 Non-Customers Bank will refrain from entertaining BG to those who do not enjoy credit facility with our Bank. 2.2.3 Precautions It is ensured that the customer's capacity to reimburse to the Bank the BG amount, in case of invocation of BG. In the case of Performance Guarantee, the experience of the customer, capacity & means to perform the obligations under the contract, is ensured. 2.2.4 Advance Payment Guarantee 2.2.5 Deferred Payment Guarantee [DPG] 2.2.6 Guarantee Not to be Issued Construction companies/ contractors ordinarily require these guarantees. The end-use of funds by the applicant are monitored in each case. The process of appraisal of DPG is carried out in line with that of term loans. [I] Bank shall not execute guarantees covering inter-company deposits/ loans thereby guaranteeing refund of deposits/ loans accepted by NBFC/ firms from other NBFC/ firms [ii] It is ensured that the Bank, not to extend guarantees in favour of overseas lenders including those assignable to overseas lenders. However, it is subject to FEMA provisions contained in Notification No. FEMA 8/2000-RB dated 03.05.2000. 2.2.7 Margin For BG issued in connection with disputed customs/ central excise duties, 100% margin is obtained unless otherwise specified in the sanction. 2.2.8 Security BG is usually secured by extension of charge on current assets/ fixed assets obtained to cover working capital facilities.

2.2.9 IBA format BG shall normally be issued on the format standardized by the Indian Bank s Association. When it is required to issue on a different format, it shall be ensured that the BG is For a definite period. Having a definite objective enforceable on the happening of a definite event For a specific amount In respect of a bona fide trade/commercial transaction Having the Bank s standard limitation clause Not stipulating any onerous clause Not containing any clause for its automatic renewal on expiry 2.2.10 Security Features BG is being issued only on pre-printed serially numbered security forms. BG is being issued by signing in full on all pages with the official s specimen signature number. 2.2.11 Counter Guarantee Whenever a BG is issued, a suitable counter guarantee is obtained from the borrower. 2.2.12 Safety Measures The original and a copy of the guarantee is dispatched to the beneficiary separately. After expiry, follow-up shall be made with the beneficiary for return of the original guarantee. Immediate steps are taken for cancellation of Expired BGs. 2.2.13 Cancellation before expiry BG is beingcancelled prior to its expiry only with the written consent of both the beneficiary & the applicant, on duly surrendering back the original BG to the Bank. 2.3 LETTER OF CREDIT 2.3.1 Basis for issuing a Letter of Credit Uniform Customs and Practices of Documentary Credits (UCPDC) provide the basic framework for LC and for its operations. It is necessary to incorporate a statement that the Letter of Credit has been issued subject to UCPDC. Once the issuing Bank incorporates such a statement into the text of the credit, the provisions of UCPDC bind all the parties handling the credit, unless otherwise expressly stipulated in the credit 2.3.2 Rules relating to opening and operating L/Cs Opening Bank acts at the request of the customer only Applicant s authorization is necessarily obtained by the bank to pay the beneficiary in case of discrepant documents The issuing Bank promises to pay the beneficiary at sight after a specific number of days of shipment or number of days after sight i.e. on presentation of the documents to the beneficiary and acceptance thereof (usance) The applicant stipulates the documents against which payment can be made. The main documents called for in a LC are Bill of exchange, Commercial Invoice, Packing List, Transport documents, Insurance documents, Certificate of origin and Inspection Report/Quality certificate in line with the terms of LC

The opening bank to scrutinize the documents before making payment The applicant should undertake to reimburse the opening Bank on the due date If the documents are not in order, the applicant can refuse to reimburse the opening bank. The issuing bank, confirming bank are expected to complete the scrutiny of documents received within 5 banking days after receipt of the documents. In case of revolving LC we have to take more than ordinary care. 2.3.3 Legal provisions Banks are to act according to the provision of UCPDC in matters relating to credits and documents submitted under credits, as long as these are not in conflict with any law. Wherever there is a conflict between an article of UCPDC and provisions of another statute, the local law should take precedence. 2.3.4 Basic aspects to be observed while opening LCs 2.3.5 Exchange/Trade Control Aspects It should be ensured that The proposal for LC limit is appraised with the same diligence as in the case of fund based limits. Adequate cover in each case should be obtained by way of margin and security. If the LC is for purchase of goods required in the normal course of business, the quantity of material and the ruling price should be satisfied. LC exposure on the customer is critically examined taking into account his integrity, credit worthiness, financial strength, solvency and liquidity. The standard application cum guarantee form complete in all respects is obtained and alterations, if any, will be authenticated. The non-judicial stamp as applicable should be fixed. The person signing the LC application is authorized by the applicant firm/company. Issue of LC is recorded in the LC and liability registers for proper control and reporting. Issue of LCs beyond discretionary powers is avoided. Irregularities, if any are reported. The place and date of expiry is specified in the credit. The last dates for shipment/negotiation shall be incorporated The imports shall be covered under valid import licence wherever required. The amount, balance available, type of goods imported, country of origin, and validity period of licence should be scrutinized. The credit shall not contain any clause detrimental to the Bank s interest. Method of reimbursement to negotiating bank should be specified. If the credit is transferable and freely negotiable, a Bank should be nominated for transferring the credit It is ensured that: The item proposed is not in the prohibited list under the Exim

Policy. For imports from Nepal/Bhutan the amount should be denominated only in Rupees. The usance period shall not exceed 6 months from the date of shipment in case of non-capital goods. In case the company has availed buyer's line of credit, usance period can be extended upto 360 days. Interest if any payable for the usance period, should not exceed the prime rate for the currency in which the bill is drawn. 2.3.6 Documents Check that: L/C is explicit about the supporting documents. Each document serves a specific purpose. All documents required for completing customs and trade control formalities are listed in the credit. Full sets of transport documents are routed through the Bank. If a clause to the contrary is included, then extra precaution is to be exercised. Documents issued prior to opening of the credit are not accepted unless provided for in the credit Transport documents are consistent with the nature of goods. For perishable items, Bill of Lading or multimodal transport documents are not stipulated unless refrigerated containers are used. Bill of Lading is required only for port-to-port shipment. It should be ensured that the shipping to/from locations are in fact port towns Bank s interest in the goods is noted on the Bill of lading, Multimodal document. The insurance risk cover is suitable for the type of goods involved and in the same currency of the LC Risks required to be covered are specified in the policy The particulars of the credit are incorporated in all the documents for proper identification and bank s interest is noted on the insurance policy. 2.3.7 Advising Bank Established beyond doubt the genuineness of the message (SWIFT, SFMS, Cable) received from the opening bank, before advising the customer. If credit is restricted to the Bank itself, it should be made clear in the letter to the beneficiary that the Bank does not undertake to negotiate any discrepant documents. Service charges are being recovered from the beneficiary as per LC terms. 2.3.8 Confirming Bank Confirmation of LC by the Bank is only at the request from the issuing Bank/Beneficiary Undertakes to pay at sight/on due date as applicable Liability of the confirming bank is same as that of the issuing Bank. The beneficiary is at liberty to submit documents and demand payment or acceptance from the confirming bank without approaching the issuing bank. The confirming bank can claim

reimbursement from the issuing Bank on negotiation of bills drawn as per the terms and conditions on the LC 2.3.9 Negotiating Bank The opening Bank can authorize another Bank called the negotiating Bank to make payment to the beneficiary. The Negotiating Bank should scrutinize the documents and ensure that the documents fully conform to the terms of credit. Payment should be made to the beneficiary and reimbursement claimed from the opening Bank 2.3.10 Devolvement of L/C 2.3.11 Crystallisation of Bills 2.3.12 Amendment Rules In case of devolvement if the irregularity in the account is not adjusted within 15 days, opening of further L/Cs are subject to detailed scrutiny and reasons for opening of further LC should be recorded. Demand and Usance Bills in Foreign Currency should be cyrstallised within 5 banking days of receipt of the Bill and on the date of maturity of the bill respectively, at Bill selling rate or at the contracted rate, if a forward contract has been booked for the purpose. Any amendment has to be made by the opening Bank and advised to the beneficiary in the same way as the original credit was advised Amendments to the credit should be done only at the request of the applicant and exactly as per the request The amendment is binding on the Issuing Bank from the moment it is issued The amendment is not binding on the beneficiary unless he chooses to accept it. 2.3.13 Precautions The terms of the LC should be carefully cross checked with the application before delivery The margin amount and service charges are being recovered The amount of credit under the LC should be commensurate with holding level of raw materials The opening of the LC should be within the sanctioned limit and authorized by the appropriate authority. LC limit sanctioned for purchase of raw material should not be used for import of capital goods The message for opening the LC should be transmitted by means of authenticated SWIFT/SFMS. If the LC has been issued in printed form it should be ensured that the same is signed by two authorized signatories It is to be ensured that there is no double transmission of the message. No mail confirmation should be sent for credits transmitted over SWIFT/CABLE/SFMS as these are considered to be operative credit instruments. Additional precaution is required in case of non-negotiable transport documents like Airway Bills and where delivery is against acceptance. Airway bills/charter parties BL are not documents of title to goods and do not offer any protection to the bank. Security and margin

2.3.14 Letter of Credit (Beneficiary) 2.4 Priority Sector 2.4.1 Applications received should therefore be more stringent in case of air consignments. Transport documents such as Railway receipts/truck receipts/bills of lading are scrutinized carefully to verify their genuineness, quality and quantity of merchandise covered by them, the date of issue etc. The transport receipts are from IBA approved carriers. Submission of one copy of the BL directly to the consignee should not be acceded to unless full margin is available The issuing Bank & Confirming Bank are expected to complete the scrutiny of documents received within 5 banking days after receipt of the documents. In case of revolving LC we have to take more than ordinary care. We have noted to insist on buyers advising LC through your bankers If LC is directly received from buyer, we shall deposit it with the banker and advising them that you intend to negotiate the documents under the LC so that your banker may ascertain the genuineness of the LC. Before dispatch of goods, we shall ascertain from the bankers as to whether they are willing for negotiation of bills under that LC The terms and conditions of the LC should be read carefully and documents should be prepared accordingly. If any of the terms and conditions are difficult to comply with then the buyer should be asked to arrange for suitable amendments before dispatch of the goods. Irrespective of an LC being furnished, before entering into commercial transactions with any party independent inquiries are made to ascertain genuineness, trustworthiness, track record and competency of the other party. Customer-borrowers can register the loan application with the branch and receive the acknowledgement there of. The loan applications are being disposed off within the time norms. cum disposal register 2.4.2 Collateral Security The branches are advised to adhere to the guidelines/ instructions laid down with regard to the obtention of collateral security for loans under the various Government Sponsored Schemes. 2.4.3 Achievement of targets under Agriculture, MSEs, other priority and Govt. sponsored schemes 2.4.4 Genuineness of borrowers 2.4.5 Acknowledgement to Gold Loan borrowers The Bank shall make all efforts to reach the stipulated targets under priority sector advances and Government Sponsored Schemes as per norms. Bank observes KYC norms and obtains necessary documentary proof to establish the genuineness of the loan applicant. Bank has enabled the system generated acknowledgement for the jewels pledged to gold loans borrowers.

2.4.6 Coverage of customers under financial inclusion. 2.4.7 Accounts opened by B.C. Model 2.4.8 Charges on financial inclusion transactions 2.4.9 GOI and RBI guidelines on financial inclusion It is ensured that the Bank will provide banking services to the allotted villages either through brick and mortar branches or through BC Model. Under BC Model, BCs shall act as Agents of the Bank and carry out transactions at village level and all the transaction are posted at Bank s CBS. All customers who have opened their accounts through BCAs will ensure that they are the customers of the Bank. It is ensured that the bank will not levy any charges on financial Inclusion transactions. It is also ensured that Bank to notify details of charges, if any made applicable, 30 days in advance. It is being ensured that Bank to implement all the guidelines issued by Reserve Bank of India and Government of India from time to time.

3. RETAIL LENDING 3.1 CORP SCHEMES 3.1.1 Declarations The Bank declares and undertakes : To provide professional, efficient, diligent, courteous and speedy services in the matter of retail loans. Not to discriminate on the basis of caste, religion, sex, etc., while considering the credit facility. To be fair & honest in advertisement & marketing of retail loan products. To provide borrower with transparent terms & Conditions for loan sanctions. To comply with all regulatory requirements in good faith. To attempt in good faith to resolve customer complaints, if any 3.1.2 Product Innovation Loan products are developed keeping in mind the needs of various segments of borrowers, market demand, Bank s policy and other regulatory requirements. Such products are re-packaged in tune with market demand and in compliance with regulatory requirements. 3.1.3 Loan information Prospective borrower would be given all necessary information regarding range of retail loan products to suit his/her needs. On exercise of option, the borrower would be given relevant information about the loan product of his/her choice. The borrower would be informed the process flow, right from submission of loan application to disbursement of loan and time frame within which the process would normally be complete. Name and contact number of the Bank Official would be made available to prospective borrower to contact regarding product features, loan application and delay in service etc.. Retail loan product information is made available on: Website of the Bank: www.corpbank.co.in Posting query to query@corpbank.co.in OR horls@corpbank.co.in OR contacting the Branches or Retail Lending Division, Head Office., over phone. Email queries will be replied on the same day, unless it is a Bank holiday. On submission of loan proposal, the status of the proposal can be ascertained through Know Your Loan Application Status link provided in Home page of the Banks website. 3.1.4 Loan application On request, loan application would be given to the prospective borrower along with exhaustive check list and list of various charges applicable to the loan. Applicable processing charges are available in the Bank s website separately and also under respective scheme guidelines. Retail loan applications with checklist are made available in the Bank s website, which borrower can download.

3.1.5 Interest Rates Interest rates on various retail loan products would be made available through any of the following media: In the Bank s website. Over phone, where tele-banking facility is provided. Through prominent display in the Branches and at other delivery points. Revision in rate of interest: Revision in rate of interest would be notified to the existing borrowers by way of individual communication. Interest rate would be posted on the Bank s website. Notice to this effect would be displayed at the Branches. On demand, the borrower can have details of method of application of interest. Borrower can view loan/interest details of his/her loan account, where he/she is enjoying net banking facility. The Bank would inform the borrower clearly the terms of charging penal interest and overdue interest. Entry pertaining to monthly interest debited to loan account will contain rate of interest and penal interest, if any, charged. 3.1.6 Loan Charges The Bank would notify details of charges applicable in relation to the loan product chosen by borrower. List of charges would be supplied as an annexure to loan application. Any upward revision in charges would be informed 30 days in advance, before implementation. 3.1.7 Sanctioning terms Details regarding charges are made available in website. The Bank would normally give an acknowledgment of receipt of loan application. If demanded by the borrower, a copy of the application form duly acknowledged would also be given. The Bank would inform the borrower about the various documents that are required for processing the loan. The Bank would inform the borrower regarding loan sanctioning process, sanctioning authority, time required for sanctioning of loan in normal course etc. The Bank shall endeavor for speedy delivery of credit as per bench mark time norms stipulated for respective retail loan schemes..

3.1.8 Documentation On sanctioning of the loan, the Bank would intimate the same to the borrower. The Bank would show to the borrower the documents that are required to be executed. The Bank would explain, if necessary, the relevant terms and conditions of sanction & disbursement of loan. After execution of the documents, the Bank would give copy of full set of documents executed by the borrower on demand. In case of rejection of loans, the Bank would convey reason for such rejection. The borrower would be given report on copy of retail score card, CIBIL report, due diligence reports, on demand. 3.1.9 Operation in accounts 3.1.10 Information Secrecy The Bank would provide statement of loan accounts, unless not found necessary by the borrower. The borrower may be issued loan pass book on demand. The borrower may view/ download his loan account statement, if he/she is provided with net-banking facility by the Bank. Loan account statement may also be e-mailed, on demand. All personal information of the borrower would be kept confidential and would not be disclosed to any third party unless agreed to by the borrower except the following: Law enforcement agencies. Credit Information Bureau like CIBIL etc. Reserve Bank of India. Government Other Banks and financial institutions. Borrower information would be revealed only under the following circumstances. 3.1.11 Grievance Redressal If the Bank is compelled by law. If it is in the public interest. If the interests of the Bank require disclosure. To Due Diligence Agencies where the borrower has Consented. Any complaint/grievance regarding retail loans may be sent by email to horls@corpbank.co.in OR In writing, to Retail Lending Division, Head Office. The Division would resolve such complaints within maximum period of 30 days, unless the nature of complaint is such that it requires verification of facts and figures.

4. FINANCIAL MANAGEMENT 4.1 Cash Department 4.1.1 Strong Room The bank is ensuring that the activities in the strong room are not visible to public. Bank s Strong rooms are constructed as per RBI specifications. Fitness Certificate from the competent authority is obtained at prescribed intervals. Electric connection is controlled from outside. The Security alarm system is tested periodically. Armed guards guard the strong room of chest branches round the clock. Strong rooms are kept free from dampness/termites. Branches adhere to the ceiling prescribed by Head Office for retaining cash in the strong room. 4.1.2 Keys Main Keys of the branch (e.g. keys of the strong room, safe deposit vault etc.) are in the possession of identified and duly authorised official. Unauthorized officials/ employees are not permitted to handle them. 4.1.3 Custody of Currency Notes 4.1.4 Mutilated notes No portion of the safe lies dormant for a long time. Contents are kept in circulation. Notes are stored denomination wise. Issuable, non-issuable and mutilated notes are sorted and kept separately. Half-value, mutilated, mismatched or altered notes and notes disfigured by oil or other substances in such a manner as to render their identification doubtful are not accepted. These are exchanged or otherwise disposed off in terms of Reserve Bank of India Note Refund Rules. 4.1.5 Forged notes All notes accepted over the counters are carefully examined for their genuineness. For quick and easier detection of forged notes, ultraviolet lamps are used. Forged notes detected at the branches are handed over to the local police for further investigations. Receipts of impounded notes are issued to the tenderers. Monthly reports on the forged notes so detected are sent to HO/RBI s Issue Office on a monthly basis. To facilitate counting / sorting of notes, critical branches having daily average cash inflow of Rs.50 lakhs & above are provided with Note counting / Note sorting machines. 4.1.6 Bank cash Balance The particulars of the Bank Cash Balance at the close of business each day are recorded in the Cash Balance Book, duly bifurcated into Single Custody and Joint Custody and are signed by joint custodians.

4.1.7 Procedure Cash is always kept locked. At commencement of business, Joint Custodians withdraw sufficient cash for the day s requirement from the chest and enter the particulars in the vault register under the signature of the joint custodians. Similarly at the time of depositing into the chest, particulars are entered in the vault register under the signatures of both the joint custodians. 4.1.8 Shortage/Exce ss cash 4.1.9 Intra day verification 4.1.10 Cash verification 4.1.11 Rotation of duties After withdrawal from the chest, no cash will remain in the custody of the cash officer. He / She distribute the cash amongst designated staff as per their estimated requirement. Each designated staff at the time of receiving the cash will verify that the packets are intact and will count the number of packets and all loose notes. He / She will acknowledge receipt of cash in Double Lock Register. During the day if any designated staff accumulates cash beyond the stipulated limit, he / she hands it over to the Cash Officer against acknowledgement in the Double Lock Register. Cash receipt/ delivery amongst designated staff is done only when instructed by Cash Officer. The transaction is recorded in Doubt Lock Register of both the cashiers. All cash receipts are scrutinized by receiving cashier for ensuring exact quantity as per voucher and acceptable quality of notes. In case of doubt on quality of the note the matter is referred to Cash Officer. Receiving cashier separates issuable and soiled notes. Receiving cashier makes packets of 100 pieces of notes denomination wise. He places a note slip on the packet and sign it after tying it with a string as per prescribed procedure. Before making payment cashier collects and verifies token from the customer. All shortages/excess found in cash are reported to the Controlling Authority immediately after detection, even if the shortages are made good in full by the concerned employee/ official. A special register is maintained to record instances of shortfall. Excess cash found are deposited into sundry deposit account with full particulars. The Cash Officer/Branch Head carries out intra-day verification of cash at the cash counters at irregular intervals. Suitable record of such verification is maintained. The Zonal Office arranges for the verification of cash at currency chest and small coin depot balances at the branches at irregular intervals, at least once in every month. Duties of cash department staff are rotated periodically

4.1.12 Clean Note Policy 4.1.13 Cash retention limit and insurance cover 4.1.14 Remittances of cash and valuables 4.1.15 Cash in transit and its Insurance 4.2. Housekeeping 4.2.1 Suspense Account Note packets are not to be stitched or stapled. Separate packets are prepared for soiled and issuable notes. Branches display posters regarding exchange of cut and soiled notes. New notes are made available to the customers / general public without any discrimination. Branches freely accept coins of all denominations. Branches freely distribute coins to customers / non-customers Non-chest branches are not allowing their cash balance to exceed retention limit and the insurance cover. Information regarding remittances are discussed only on a need to know basis and not divulged even to the concerned employees earlier than necessary. Remittances between a Chest branch and link branch is packed in steel boxes and locked. Of the two sets of keys, one set is retained at the sending branch and the other at the receiving branch. Keys are not carried with the remittance. Greatest secrecy is maintained regarding the actual timings of dispatch of remittances. The armed guard escorting the remittance will not carry boxes from/to the vehicle. The remittances are transported in a closed vehicle. The vehicles are hired from known and reputed transport providers. The remittance boxes are securely chained (with a chain and a padlock) to the body/ seats of the vehicle. The receiving branch is informed of the approximate time of arrival of remittance. If the vehicle is unduly delayed, the receiving branch gets in touch with the remitting branch. Cash in Transit insurance is arranged by the Head Office. The policy contains stipulations such as the (i) ceiling on value of cash per remittance (ii) number of employees (iii) armed guards required accompanying the remittance, and (iv) other precautionary measures to be taken while effecting a remittance. The branch meticulously complies with all the precautionary measures advised to them. The value of each remittance not to exceed the limit prescribed under the transit insurance policy. No debit to be made in the suspense account without authorisation of Branch Manager. Suspense account is not used for providing temporary accommodation. The entries in suspense account for more than one month are followed up rigorously. The monthly statement of suspense account is sent to controlling authority promptly.

4.2.2 Sundry Deposit Account 4.2.3 Inter Branch Reconciliation The reversal of entries in Sundry Deposit Account is authorised by Branch Manager The old outstanding entries in sundry deposit account is followed up for early reversal. Monthly statement of outstanding entries is sent to controlling authority without delay. Originating debit entries in respect of inter branch is raised only in respect of permitted items. Originating debits towards cash shortage, cut notes sent for collection, service charges, courier charges are strictly prohibited. Any debit for the purpose of credit of Income Account is prohibited. All inter-branch entries have to be adjusted within the time limit stipulated by HO. Inter-branch entries relating to customer transactions such as MT, TT, and Transfer of Accounts are adjusted on a priority basis. All pending entries are adjusted on a priority basis after seeking necessary clarification from other branches / IBR, HO. Service Branches / main branches in charge of clearing at each centre ensures that inter-branch transactions emanating from them relating to clearing operations are adjusted by the branches on the same day. 4.2.4 Tax Payments Branches deduct TDS wherever applicable and remit the same to Government. 4.2.5 Local Bank Accounts Branches file ETDS Return at quarterly intervals. TDS Certificates are sent to depositors deductees within the stipulated period. PAN No. of the customers are obtained in respect of all specified transactions. Monthly reconciliation is carried out and statements are submitted to Zonal Office. No charge is debited to Local Bank account other than the permitted items. Minimum balance is kept in Local Bank A/c and excess funds should be transferred to RBI Account on the same day. Zonal office submits monthly reconciliation statement in respect of all branches in the Zone before 5 th of the succeeding month to Head Office.

5. INFORMATION TECHNOLOGY 5.1 CORE BANKING 5.1.1 User Access The Bank has put in place two level password authentication systems to prevent unauthroised access to the Core Banking Software (CBS). 5.1.2 User Types The Bank has segregated different category of users to access data based on the need and level of user with appropriate rights. 5.1.3 User A user can be introduced to CBS system based on his validation in Creation Employee database.user is always identified with his Employee Number to maintain uniqueness of user. 5.1.4 Access Control The access is permitted from the I P address range set in the CBS system for a specific business unit. 5.1.5 Maker Checker All transactions are applied to Maker Checker concept subjecting transactions entry and authorization by different users. 5.1.6 Change of Users are forced to change their own passwords at regular intervals Password 5.1.7 Backup of Data 5.1.8 Information security specifying minimum length of password etc. Bank maintains data backup to safeguard the customer interest and business continuity. Backup is taken at primary location as well as online updation is done at Near Site and Disaster Recovery site Bank has implemented IPSEC on the network to protect from data tampering and continuously monitoring all the network through agencies for security of data and information assets. 5.2 INTERNET BANKING 5.2.1 Precautions Regular monitoring of the activities in the account by checking the balances and statements online through the Bank s website shall be ensured. This would help the customers to promptly detect any fraudulent transactions. The earlier a fraud is detected, the smaller will be its financial impact. Always type the address of the website in the address bar of the browser or access it from your stored list of favorites. Do not share Passwords with anyone - Exercise caution as no one including the Bank officials will ask you for the Internet Banking Passwords. Change your password frequently - Use the best practices for creating passwords based tips on creating passwords in the respective sections. Use virtual Keyboard - Using the virtual keyboard wherever available would help prevent key logger compromises as in such cases the keyboard is not being used for the input. Check for your Last Login Time Login to the Bank s Internet banking website to view the date and time of your last login. Limit the use of physical statements Online statements easier to manage than paper statements and instantly retrievable. The fewer personal documents are sent through the post, the less the chance for a possible fraud.

Review account statements carefully Make a habit of reviewing your account statements regularly. The Mini Statement and detailed Statement options available on the Internet banking site shall help you to review your bank account statements thoroughly. Sign Up for SMS Alerts - Register for Mobile Banking and receive alerts upon all transactions in account. Be Vigilant Never fill in any form that one has accessed via a link with sensitive data such as User-ID, password, PINs, and other account related information. Login Frequently Logging into the internet banking website not only helps one keep track of accounts online but also enables to notice and stop any fraudulent activity quickly. Be Cautious Do not leave Internet banking session unattended. Always ensure sign off after use from your online banking session. Update the customer profile in the Internet banking website, key-in the answers to the security questionnaire, and register the e-mail Ids and mobile number for better service and security options. Our Bank does not ask for the details of your account/pin/password/mobile No./email ID/email ID password through mail/phone/letter. Therefore any one pretending to be asking you for information from the bank/technical team/security team may be fraudulent entities. So please beware of the so called phishing/vishing calls. You should know how to operate net transactions and if you are not familiar, you may refrain from doing so. You may seek Bank s guidance in this regard. Bank is not responsible for online transactions going wrong. OTP(One Time Password) Be Cautious of not sharing the mobile phone with any one while doing any internet related transactions. While doing any internet related transactions be sure of keeping mobile phones with you. A 6 digits random number (OTP-One time Password) will be sent to the customer s registered mobile number for doing any internet transactions. Always verify the reference number which will be sent along with the OTP message to the customers with the one displayed in the system screen for making any internet transactions. Always try to use the Virtual Keyboard for entering the OTP password while doing any transactions.

OTP will be sent to the customer s registered mobile number. The OTP so sent to customer s mobile phone is applicable to only that particular Transaction, which the customer will be doing at that moment. Be sure of the below mentioned points while doing any internet related transactions. Correct Mobile Number needs to be registered with the Bank. Make sure the mobile phone is not switched off while doing any internet transactions. Make sure the mobile phone is working and within the reach of the mobile signals Make sure the mobile phone Inbox should is not full and able to receive SMS If the mobile No. is foreign number, then the country code should have been prefixed while registering in the branch. If transactions are being done from overseas countries and Indian mobile is used with roaming facility, the same should be intimated to the Bank with the country code once Anti-phishing: It is a method for authenticating the website which the customers use for Internet Banking. Using this approach, customers can ensure the authenticity of the website before giving the login credentials. This way customer can avoid disclosing their login credentials to any unauthorized websites. Make sure to select an image and an authentication message so that whenever the customer visit internet banking website he/she can make sure the authenticity of the website by viewing the image and the message which he/she entered before. Always make sure the URL address on the address bar of your internet browser begins with https. The letter S in the end means it is secured. Do not enter login or other sensitive information in any popup window. Customer can verify the security certificate by clicking on the Pad lock symbol of the internet Browser.

Sec Msg: Sec Msg. is an application for the customers if he/she requests for new password in their registered mobile. Customer can send a request to web centre for receiving the new set of passwords in their registered mobile number. Customer needs to download the sec msg application in their registered mobile and then create a pin for using the same. Using this application customer can receive new set of login and authorization password. Make sure that the mobile is GPRS enabled and internet connected. Make sure to register the mobile number in the branch. Make sure not to share your mobile number with any one. Make sure not to share the sec msg applications pin with any one. Make sure to change the login and authorization password once you login with the new set of passwords received using sec msg application. e-token/hard token/digital signature: Bank has introduced an additional security measure of digital signature for corporate clients. Customers can apply for the same through our corporate site. Digital signature is one more type of security, which is an electronic equivalent of an identification card such as passport, driving license etc. It establishes the identity of the user unequivocally when exchanging information. Digital Certificates are issued only by a valid Certification Authority (CA). The Digital certificates which are powered by Public Key Infrastructure (PKI) are accepted world over as industry best practice for ensuring digital authenticity and accountability in electronic transactions. The information Technology Act in India provides legal recognition of Digital Signature issued by licensed Indian Certifying Authorities. Digital Signatures impart confidence and comfort to both the customer and the Bank since it provides the following features: Authentication: Confirmation that the message is sent from legitimate user Data confidentiality: Assurance that message is inaccessible to third party

5.3 Shopping Online Data Integrity: Confidence that the message has not been altered in transmission Non-repudiation: Certainty that a customer acknowledges and is committed to being the originator of a message thereby not being able to dispute or repudiate the validity of the message Be very sure of the website address. The website address is reflected on the address bar of the Internet Browser. This check is recommended every time any website is accessed from the link given elsewhere. Always type the website address or bookmark the websites that one visits frequently. Never enter, confirm or update account related details on a pop-up window. Delete suspicious emails without opening them and if anyone happened to open a suspicious email, care shall be taken to not respond to online solicitations for personal information. It is also prudent not to open any attachments or click on any links it may contain. Never provide any sensitive account or personal information in response to an email. If any personal information has been entered / parted with, report it to the Bank immediately by calling the Bank s Web Centre or sending mail to webcentre@corpbank.co.in or ibank@corpbank.co.in. Use added security features,,when using your Credit card online: If one tends to use Credit Cards frequently for online shopping, make sure that he signs up for Websites displaying Verified by Visa and/or Master Card Secure Code program(s) Confirm that website is a secure one Make sure any Internet purchase activity one engages in is secured with encryption to protect account information. Look for secure transaction symbols. Shop Online only from reputed websites. 5.3.1 On-Line opening of Time Deposits 5.4 Offline transactions Beware of online offers that require you to provide your account details for verification and avoid such sites. Customers with net banking facility can open term deposit / recurring deposits online. Make photocopies of all information carried daily by customers like credit cards etc., and store them in a secure location like a safe deposit locker. Whenever you or your family are away from home, get the incoming post collected by a trusted acquaintance and if you are going to be away for a

5.5 Cyber Cafe Security longer period, arrange to get your mails diverted to an alternate address. Do not leave your incoming post lying around in your absence. While accessing any website including the Bank s website from a cyber cafe or from any shared computer or from a computer other than own computer, care shall be taken to change user passwords after any such use immediately thereafter, from own PC at workplace or at home. It is very important to do so especially when one has entered their transaction password from such shared computer or cyber café computer, as the sensitive details including user-ids and passwords could have been tracked by key loggers meant for the purpose in such systems. Please note to change these passwords from the user s own PC at their workplace or at the house. 5.6 Password Always choose unique passwords that include a mix of letters, numbers and characters wherever permitted. Make it a point to use longer passwords as allowed by your application using a mix of letters, numbers and special characters as they are much more difficult to figure out than shorter, straighter forward passwords. Please avoid choosing passwords that are obvious, easily guessable, such as names of family members or pets, nicknames, birthdays and telephone numbers that might be easy for others to figure out. It should be distinctly understood that the customers are solely responsible and liable for any loss arising from their sharing / compromise of sensitive account related information such as User Ids, passwords, cards, card numbers or PINs with anyone or from their consequent unauthorized use. Customers are required to understand the importance of keeping such details confidential as well as be aware of the consequences of their misuse. The Internet Banking Password (both meant for Login and Transaction authorisation) shall be changed after the first login and thereafter regularly (at least once in a month). Customers shall create and maintain different passwords for Login and for Transaction authorisation. This would provide additional security for financial transactions through Internet Banking. Customers shall avoid using the same password for multiple applications or Internet services. Make it a practice to use a unique password for each website and purpose. In case someone has more than one Internet Banking User ID, use a different password for each of the Internet Banking User- Ids. The passwords shall be complex and difficult for others to guess. Use letters, numbers and special characters [such as! @. #, $, %,^,&,*(,)] in passwords to increase the security of the passwords.

Avoid using passwords that are obvious, like one s name/ nickname, names of family members, address, phone number or any other information that a fraudster might easily find in a purse or wallet. Do not use a password that contains part of your User ID or account number. Try to avoid passwords that are real [as in dictionary] words and always use cryptic words as passwords. Avoid using the same password as the one, which normally one uses to login to one s PC or access email account to the online transaction accounts. If the login Ids or passwords automatically appear in the sign-in page of a secure Web site, the auto complete function shall be disabled to increase the security of information. While accessing any website including the Bank s website from Cyber cafe, any shared computer or from a computer other than that of one s own personal one, care shall be taken to change the passwords after such use, from the own PC at workplace or at house. It is very important to do so especially when one entered his transaction password from such shared computer or cyber cafe computer. Change these Password from the own PC at the workplace or residence. 5.7 Mobile Banking - Usage Due care shall be taken to not to share passwords with others, including family members and to not disclose the Internet Banking password to anybody, not even to a Bank employee. Set up the Password of mobile phone. Usually, all mobile phones have the optional feature of a password or a PIN, which can be, set up once one switch on the mobile phone or make some configuration changes. It is advisable to enable this feature. Protect mobile phone against virus. Like computers, a mobile phone especially if it is a smart phone with GPRS is vulnerable to viruses. Viruses may harm mobile phones when it is connected to the Internet. They may also give hackers the opportunity to access your mobile phone to steal or alter one s personal information. Therefore, it would prove to be beneficial always to ensure the following: Install anti-virus software in the mobile phone Delete junk messages and chain messages Do not follow any URL in messages that one is not sure about. Do not download any file from sites (e.g. applications, games, pictures, music) or people (e.g. e-mail attachment) that one is sure about. Trojans/Spyware Do not download any software without verifying its security and privacy features from the website. The following steps are recommended to shield the device from this threat.

Install anti-spyware software in the mobile phone. There are products designed specifically for PDAs (personal digital assistants) such as McAfee PDA Virus Scanner and PDA Spybot. Get educated on spyware and be alert to any spyware like activities on the mobile phone. Also be suspicious if one gets lots of unsolicited e- mails/messages. Always have the latest software updates. The manufacturer or dealer of the mobile phone shall be approached to provide updated software for mobile phones from time to time. The availability of software updates shall be checked and installed regularly. Avoid sharing mobile phone. Do not forget the following if the mobile phone is shared or sent for repair / maintenance. Remove the temporary files and the cache that were stored in the memory of the phone, as the temporary files and the cache may contain some of the sensitive personal information of the owner such as account numbers. Clear the browsing history regularly. Do not allow others to access a mobile phone before logging out from the sites (banking/financial/shopping) that one has entered. Do not share passwords with anyone. Be cautious. 5.8 ATM/Debit Card Do not leave Mobile Banking application session unattended. Always sign off from a session. Change the PIN when Card/new PIN is received. Do not write PIN on the card or cover. Memorise it. Do not send proxy to operate ATM on your behalf. Have the ATM card handy to use, as one enters the ATM Centre. Do not operate the ATM in the presence of others. Ensure that no one can make out the Personal Identification Number (PIN) when entering the same. Do not leave transaction records at the ATM cabin, but shred it before discarding. Always keep the card in a safe place, just like one would take care of cash and cheque books. If a replacement card is received, make sure to destroy and discard old card immediately.

5.9 Using Credit Card After completing the transaction, keep the card and cash secured immediately. Always count the cash before exiting the ATM cabin. Sign the signature panel on the ATM/Debit Cards as soon as it is received. Change ATM PIN frequently, at least once in a month or so. If the card is lost or stolen, hot list immediately through the branch/call centre 18004252407. Confirmation may be sent through e-mail at ftscentre@corpbank.co.in Shop with the merchants who can be trusted. Never allow the shopkeeper to take the card to a different shop/room for swiping it. Ensure that the debit card is returned after completing a purchase and that the card returned is the original one. After purchase, always ensure to take the payment charge slips and destroy carbon copies, if any. Check the payment charge slips against the monthly account statements to verify the transactions and report any unauthorized transactions immediately to ftscentre@corpbank.co.in. Once the account statements are reconciled, destroy receipts immediately. Shred printed statements as soon as the information is verified with charge slips/transaction records. Never leave your cards unattended and keep the cards out of sight for others to see. Never give the ATM / Debit card to others. Never allow a stranger to assist you while using an ATM. If cardholder sees suspicious behaviour of people around ATMs or any suspicious looking objects in the ATM, nofify the Bank if possible. All our ATMs are covered under Digital Video Recorders for surveillance. Sign the signature panel on the Credit card(s) as soon the same is received Subscribe to Credit Statements through email / verify the details in the websites. Limit the use of physical statements. View and verify all credit card statements online through our website https://www.corpbankcards.in and if any be on the lookout for unusual charges /unauthorized entries are observed, intimate the same to call centre and block the card. Never carry PIN (Personal Identification Number) on anything / one s person. Memorize it and destroy the PIN mailer immediately. It shall be ensured that the credit card is received after completing a purchase and make sure that the card that has been returned, is the own / original one. Always remember to take the charge slips and to tear up any duplicates. Check the receipts against online monthly billing statements to verify all transactions and to report any unauthorized transactions immediately.

Once the billing statements are reconciled, destroy all receipts and discard them immediately. Be careful while entering the credit card number and other details online. Never leave the purse or wallet unattended and always keep the cards out of sight of others. Keep a list of all the card numbers and make sure they are in a secure place. If you have multiple credit cards, always use different PIN numbers. Do not use a common PIN number for all your cards. Memorise Card Verification Value (CVV) number which is the last three digits number printed on the backside of the card and blacken it so as to be not to be visible to onlookers. Card details be furnished only to the original website address(address/look of fraudulent phishing websites would be slightly different) Make it a practice to type the website address rather than choosing the website address by clicking on a hyperlink. Ensure that the website you access display information like Verified by Visa (VBV) and also look for secure transaction symbols like https. The card holders are required to register for VBV one time through the Bank s original website, where a link is provided for registration. Corporation Bank does not request for the account information of the customers in any form. Please do not provide personal information like passwords, PIN, Credit Card No etc., to any entity in response to an email, oral or any other kind of requests. If you have revealed any of the sensitive account information as indicated above, please change the passwords and PIN immediately. 5.10 PROCUREMENT 5.10.1 Guidelines Guidelines issued by CVC and formed by the Bank from time to time are being followed in respect of procurement of computer capital assets. 5.10.2 Procedures The procedures in respect of publication of tenders in website, newspapers etc., opening of tenders and award of tender is being done. 5.10.3 Reporting All records are kept properly and reporting done to the authorities concerned. 5.11 DISPOSAL 5.11.1 Guidelines Guidelines issued from time to time are being followed in respect of disposal of computer capital assets. 5.11.2 Procedures The procedures in respect of disposal of computer capital assets are being followed. 5.11.3 Reporting All records are kept properly and reporting done to the authorities concerned.

6.1 Broad Objectives 6.2 Methods of Recovery 6. RECOVERY The Bank is committed to the collection and recovery of its dues from its borrower / customer. Written communications, telephonic reminders or visits to the customer's place or residence by the Bank's representatives are used as loan follow up measures. 6.2.1 Legal action Bank will initiate Legal action against the borrower as a last resort to recover the dues after exhausting all the avenues of recovery after giving due notice in writing, as per the provisions in the loan documents. 6.2.2 Other measures The Bank will resort to repossession of the security/ies only when the collection/ recovery of dues is not forthcoming in-spite of request made by the Bank. The policy for repossession will be in accordance with the terms and conditions of the loan documents and within the legal framework. 6.3 Compromise Settlement Policy 6.4 Sale of Non performing Financial Assets to Banks/FIs and ARCs 6.5 Interest concession in settlement of credit card NPA accounts Compromise settlements will be pursued by the Bank in cases where borrower finds it difficult to repay the dues for genuine reasons, as satisfied by the Bank. The policy will be in conformity with the RBI's guidelines and Bank's Recovery Policy. The Bank may consider selling of financial assets to Banks / FIs and ARCs as per RBI guidelines and Bank's Recovery Policy taking into consideration the normal avenues available for recovery to the Bank and the time taken for realization of the amount in legal proceedings. The proposal for interest concession under credit card portfolio will be considered only under circumstances where default is genuine and credit card holder finds it difficult to settle the dues as per applicable norms.

7. BRANCH EXPANSION & SUPPORT SERVICES 7.1 Consideration for selecting the centres 7.1.1 Potential for CASA Identified centre should have good potential for CASA 7.1.2 IT/BT Centres Up coming IT/BT centres should be preferred. 7.1.3 Identified SEZ/ S M E Zones Centres located in SEZ/SME Zone get preference 7.1.4 Agriculture lending Potential for lending to agriculture should be considered 7.1.5 Minority dominated Districts Minority dominated districts, as per Prime Minsters National Programme should be preferred. 7.1.6 Under-banked Under-banked centres should be preferred centres 7.1.7 Top 200 Centres we should have our presence in top 200 centres for business expansion 7.1.8 Geographical spread Better geographical spread of our Bank s network should be achieved by covering uncovered Districts. 7.2 Steps to be taken to ensure good customer service 7.2.1 Core Banking New Branches are opened under the Core Banking Solutions having fully networked connections 7.2.2 Technology Products Bank s technology products such as Any Branch Banking, Multicity Cheque Facility, Internet Banking, Mobile banking., Debit Card, Credit Card, NEFT, RTGS etc., are offered to customers immediately after opening the account with the newly opened branches also. 7.2.3 Staff & Stationery Branches are opened with complement of minimum number of required staff and all the necessary stationery [Forms, letters, brochures, pamphlets, applications] items are made available to customers 7.2.4 Customer Information materials All customer information posters, policies, books and publications meant for customers are provided. 7.2.5 Standard Ambience Banks makes all efforts to provide standard ambience and amenities to customers which include adequate lighting, air conditioning to eligible branches, dedicated customer area, seating arrangement, drinking water etc. 7.2.6 Publicity Publicity is given in the media before opening the branch.

7.3 Branch Authorisation 7.3.1 Opening of new branches / ATM/ CPC etc. 7.3.2 Shifting, Merger, Conversion etc. 7.4 Strong Room All the regulations / procedures / guidelines stipulated by RBI from time to time should be scrupulously followed while opening new branches, off site ATMs, Central Processing Centres / back offices, call centres & service centres. These are carried out as per directions of RBI keeping in view the customer convenience and business requirements. 7.4.1 Visibility The Branch Layout Plan is so designed to ensure that the activities in the strong room are not visible to public 7.4.2 Specification Strong Room should be constructed as per RBI specifications. Fitness Certificate from the competent authority should be obtained at prescribed intervals 7.4.3 Maintenance Strong Room should be kept free from dampness/termites 7.5 Safe Deposit Lockers 7.5.1 Identification Locker to be allotted to customers identified as per KYC norms 7.5.2 Security Deposit As directed by RBI, three years rent advance along with breakage charges(in case of non operation of lockers) has to be obtained and kept in deposit at the Branch 7.5.3 Access and operation of the locker Access to lockers should be allowed to the person authorized to operate the locker against identity and verification of signature obtained in the access slip 7.5.4 Change of lock When a locker is surrendered, its lock should be replaced before offering it to any new customer 7.5.5 Locker Keys Bank is mandated by RBI to get locker numbers embossed on locker keys where it is not affixed which we are making efforts to comply. 7.5.6 Checking of At the end of the day, all lockers operated during the day have to be operated lockers checked for proper closure of the locker units 7.5.7 Recovery of rent Standing Instructions should be obtained for recovery of locker rent. If rent is overdue, access to locker should not be allowed. 7.6 Procurement 7.6.1 Guidelines All procurements are carried out as per CVC and other extant guidelines in a transparent manner. 7.6.2 Procedures Tendering processes as prescribed by CVC and bank s guidelines, as applicable, are followed. 7.6.3 Reporting Procurement is reported to all concerned as prescribed by the regulators. 7.7 Compliance 7.7.1 Instructions/directio n received from Govt./RBI and other authorities All directions/instructions received from Government / RBI / IBA are attended to in a time bound manner.

7.7.2 Reporting Compliance is reported to prescribed authorities. 7.8 Safe Custody of Security Forms 7.8.1 Receipt/verification of Security Forms 7.8.2 Stock of Security Forms 7..8.3 Joint Custody of Forms 7.8.4 Bank Guarantee and LC forms 7.9 Disposal of Assets Immediately on receipt of security forms, Branches should verify the contents from the invoice and send acknowledgement to Printing & Stationery Dept. All security forms after verification should be kept in the strong room or in FBR safes. Printing & Stationery Dept., should obtain confirmation signed by the joint custodians of the Branches regarding receipt of security forms. The Branch should have stock of only 12 months requirements. Surplus stock should be disposed off, in consultation with Printing & Stationery Dept./Controlling Office. The stock of security items should be kept in joint custody. The forms, which are currently in use, are to be issued to the concerned officer against acknowledgement, which will be held in his single custody. The concerned officer should issue/receive back security forms to/from assistants through security forms receipt and/or delivery book only. Receipt/movement of these forms should be duly recorded and kept in the custody of a supervising official. 7.9.1 Methods Disposal of assets should be through newspaper publication, publishing in website and by tender-cum-auction.

8. COLLECTION & PAYMENT SERVICES 8.1 FCS Operations: By Operating Branches Due Care and caution is to be exercised in handling FCS operations. FCS instruments will be presented in the immediate clearing without any delay so that the financial implications thereof are avoided. Returned cheques will be handed over to the client/his representative without any delay. Clients are required to submit Financial statements for the last three years and other documents as per scheme. The operations by FCS Clients are not to exceed the exposure level fixed by sanctioning authority. The exposure limit shall be got renewed every year. 8.2 CCS Operations Genuine business cheques are only to be entertained under Corp Instant, Corp Clear, Corp Comfort, Corp Local and Corp Express Services. Exposure limits fixed should not be exceeded. Collection cheques entered in CCS Module should be dispatched for collection on the same day along with forwarding schedule. Instruments drawn on locations within Network will be collected within 4 days. Before sending cheques for collection to outside network bank branches, proper address of the other bank branches with telephone numbers should be obtained. Personnel telephonic contact with the official concerned at the other bank branch should be made for hassle free and timely collection of outside network instruments. Cheques once returned for other than on technical grounds should not be handled under CIS and should be handled under Collection arrangements only. Local cheques are not to be processed under CIS under any circumstances and should be handled under local cheque collection arrangement (F C S or Corp Local) and should be released only on realization. Reposting of cheques should be minimum. The operations by Clients are not to exceed the exposure level fixed by sanctioning authority. Whenever cheque returns exceeded 10%, exposure limits would be reviewed by the sanctioning authority.

8.3 Payment Products: 8.4 Courier arrangement: Prompt timely payment at the other end will be ensured. Strict vigil on the courier arrangement will be kept for giving prompt service to our CAPS clients. The Courier shall invariably visit the entire pick up points on all working days. Courier representative, calling at the client s doorsteps for pickups, shall present himself properly. If on any day, should a courier representative fail to turn up, the agency shall make alternative arrangement immediately so that inconvenience of any nature to the client is avoided. 8.5 Marketing Periodical visits to the client s offices will be made by branch/ bank officials to enquire about the level of servicing and also to get other business support to the branch / bank. 8.6 Research & Development Good relationship will be maintained with the client / his representative locally. Immediate and prompt attention will be given to grievances. New products will be innovated keeping in mind customer requirements / desires. Existing products will be modified / altered according to the customer s needs. 8.7 M I S Required MIS would be generated and the same would be sent to the clients on a daily basis. MIS received from FCS and other CAPS branches would be sent to clients on daily basis. 8.8 I T related matters Charges report / turnover report would be checked. If there is any reduction, clients should be contacted immediately. Off-line programme would be used whenever there is leased lines/ connectivity problem so that cheques can be presented in the clearing without any delay. Details like telephone No. Address and names of contact persons of vendors would be noted and good rapport would be maintained with the vendors so that breakdown period of the systems could be reduced. Outside floppies would be checked for virus. E- Mail can be used for sending / receiving of data.

9. GOVERNMENT BUSINESS 9.1 Type of business 1. Bank is authorized to collect Direct taxes (Income Tax, Corporate Tax, TDS etc.) and Central Excise & Service Taxes. 2. Bank is authorised to collect custom duties from 103 locations with effect from 16.01.2012. 3. Bank is authorized to collect State Government Taxes viz; VAT, Entertainment Tax, Luxury Tax etc., in 10 States viz: Maharashtra, Delhi, Gujarat Goa, Jharkhand, Andhra Pradesh, Karnataka UP, Tamil Nadu and West Bengal. 4. Bank has tied up with Stock Holding Corporation of India for issue of e-stamp papers Pan India. As of now, the Bank has launched this facility in the State of Delhi and select branches in the State of Karnataka and Tamil Nadu. 5. Our Bank is authorized to handle NPS and is registered as POP with PFRDA and 460 branches are identified at POP SP for doing the NPS business. The bank is also registered as a corporate POP and contributions from the salary of our employees(aggregating to 1477 employees) up to the month ended November 20121 amounting to Rs. 8.69 Cr. has been uploaded to NSDL Mumbai. Steps are taken to implement NPS across the designated branches. 9.2 Receipts 1. Customers pay government dues by cash and cheques. Only computer generated Receipt has to be handed over to the taxpayers and in case of cheques presented in clearing, receipt should be given after realization of cheques. 9.3 Pension payments 1. Bank is authorised to disburse Central, Defence, BSNL, Telecom, Railways & State Pensions. 2. The focal point branches to consolidate the data and submit to the CBDT/CBEC/State tax authorities. 3. Chief Controller [Pension] Delhi has accorded approval for our Bank to make on-line payment of Central Civil Pension through Centralized Pension Processing Cell [CPPC] set up at Corporate Office, Mangalore. Accordingly, w.e.f. 1.3.2012 we are disbursing Central Civil Pension on-line through CPPC. 4. With accreditation, our Bank is now authorised to entertain CENTRAL CIVIL Pension Pan India which was hitherto restricted to a few southern states and few Metros.

5. Pensioners are now permitted to open joint Savings Bank account along with spouse who is authorised to receive family pension to facilitate automatic switch over to family pension on demise of pensioner without time gap. 6. Pensioner is now permitted to submit Life certificate at any branch of the Bank which was hitherto restricted to Pension Disbursing Branch only. 7. TDS shall be debited separately in the Pensioner Pass book, which was earlier not shown separately. 9.4 Reporting of transactions 8. We propose to extend on-line credit of pension to other segments viz; Defence, Telecom & Railways shortly. 1. All State and Central Government transactions should be reported to the respective Focal Point branches on a daily basis. 2. Monthly statements should be tallied with the put- through statements 3. Funds settlement of Central Government transactions should be done through RBI, CAS Nagpur.

10. BANCASSURANCE 10.1 Life Insurance Business and Bancassurance products sales The branches should sell Life Insurance policies of LIC of India only as per the MOU. As per IRDA guidelines stipulate that only Specified Persons should solicit new business from the prospective investors by explaining all the features of the scheme. Group Insurance schemes viz; Corp Jeevan Raksha, for all the account holders, Corp Jeevan Griha Raksha for home loan borrowers and Corp Suraksha for education loan borrowers should be sold to the customers of the Bank by properly explaining the features of the scheme. Proper acknowledgement / Certificate should be handed over to the customers immediately after accepting their consent cum application forms. 10.2 General Insurance The Bank has tied up with New India Assurance Co. Ltd in distributing general insurance products. The branches should market insurance products of New India to the desired clients. The Bank should also sell Corp Mediclaim policies under the New India's group insurance scheme by explaining all the features of the scheme. 10.3 Mutual Funds The Bank has tied up with 23 Mutual Fund houses and the branches should distribute the mutual fund products of these fund houses through the Bank's AMFI certified employees by properly explaining about the Fund features, the risk involved in investing in the Funds and the brokerage for the service rendered.

11. CORPORATE COMMUNICATIONS, PUBLICITY AND PUBLIC RELATIONS 11.1 Out Door Publicity [ODP] 1. The Total Budget for the financial year under this sub head of Publicity is sought from the Board of Directors before commencement of the Financial Year. The Budget is arrived at after considering the previous year's actual expenses and requirement. 2. Zone-wise Budget is allocated taking into consideration the spread/ branch network/ business of the zones. 3. Powers are given to Zonal Offices for ODP. Per Occasion limit is given to all ZOs & COs. If the sanction is beyond the per occasion limit, ZO sends the proposal to CO/HO as the case may be for consideration. 4. Zonal Office inspects the sites/ media shown by various agencies, selects the sites, negotiates the rates with the agencies. 11.2 Public Relations (PR) 5. Thereafter a note is placed before the Competent Authority at ZO for sanction specifying the details of sites like location, type, size, rate, period etc. 1. The Total Budget for the financial year for Public Relations (PR) is sought from the Board of Directors before commencement of the Financial Year. The Budget is arrived at after considering the previous year's actual expenses and requirement. 2. The sanctioning power vests with Circle Office / Head Office and Zonal Office. Allocation of Budgets, Non-lending powers to the competent authorities, per occasion limit, annual ceiling etc., are sought from the Board while seeking Publicity Budget for the financial year. 3. On receipt of the proposals/request from the organizers Circle Office/Zonal Offices/Branches, based on the merits of the case viz., cause, purpose, benefits to the Bank etc., note will be placed before the competent authority for approval, as the case may be.

11.3 Specialty Advertisement (SPADV) 1. The Specialty Advertisement (SPADV) includes Bank s Wall Calendars, Table Calendars, Diaries, Give-away carrying Bank s name and logo, Table tents and other tools of publicity such as T-shirts, Caps, and Danglers. 2. The Total Budget for the financial year under Specialty Advertisement (SPADV) is sought from the Board of Directors before commencement of the Financial Year. 3. Non-lending powers under Specialty Advertisements to the competent authorities are clearly mentioned while approving the annual budget. 4. The sanctioning power on Specialty Advertisements remains only with the Corporate Office. 11.4 Print & Electronic Media [PEM] 5. Samples, specimens, designs of various items, which are required to be procured, printed, are placed before the top management for selection. The Agency/Vendor/ Printer whose items are selected by the top management get the supply order. 1. The Total Budget for the financial year under this sub head of the Publicity is sought from the Board of Directors before commencement of the Financial Year. The Budget is arrived at after considering actual expenses for the previous year and requirement. 2. The sanctioning power on Print & Electronic Media remains only with the Corporate Office. The Advertisement creative and storyboard are done by the Empanelled Advertising Agencies of the Bank. The brief on various products, services and campaigns, which are required to be advertised, are given to the agencies. The creative/storyboard submitted by the Agencies is placed before the top management for selection. The Agency whose creative is selected by the top management gets the Media releases. 3. The note for releasing to the media is placed before the Competent Authority specifying the details of the publications/channels/stations, size, colour, position, spots, date etc. The media estimate is given by the Agency. Corporate Office also checks for the rates and negotiates with the publications/stations, if required.

12. INSPECTION & AUDIT 12.1 Audit Policy Inspection and Audit Policy is framed keeping in mind RBI/ Government guidelines/directives issued from time to time. Inspection & Audit of the Branches/offices is carried out through Internal/External Auditors as per the approved Inspection and Audit Policy of the Bank. 12.2 Purpose To provide assurance on governance and risk management that internal control mechanism is adequate and is operating effectively, resulting in improved efficiency, sustained quality and risk free functioning of the Bank. 12.3 Plan Inspection and Audit Plan for the ensuing financial year (quarter wise) is prepared and approved well in advance. Inspection and Audit is carried out according to the Plan. 12.4 Coverage Inspection and Audit covers all areas of functioning of the Bank, with special focus on verification of compliance level of strategic plan and policies developed by the Bank and guidelines issued in this regard by the various functional units. Inspection & Audit Division reviews and reports upon the environment prevailing in the Bank as a whole, the process by which risks are identified and forward such reports on identified risks to the respective functional Divisions for taking remedial steps to mitigate such risks. 12.5 Process Advance intimation is sent to the Branches/Offices about the forthcoming inspection and audit, so as to enable the Branches/Offices to be in preparedness for the smooth conduct of the Inspection and Audit. Inspection and Audit of the Branches/Offices are commenced well before the due date and completed within the allotted time. Qualified/and experienced officers are deputed for conducting the Inspection and Audit. Inspection and Audit is carried out at the Branches/Offices in a condusive atmosphere and a non-biased, non-partisan approach is adopted by the Auditors. Irregularities observed by the auditors are based on facts and figures. 12.6 Scanning & Rating Scanning of the Inspection Report, preparation of Executive Summary, rating under individual risk parameters and overall rating of the Branch is done without any bias, prejudice and purely on the basis of findings of the report submitted by the Inspecting Official/s as well as guidelines for inspection rating adopted by the Bank.

12.7 Rectification Inspection and Audit Reports are to be closed within the time norms stipulated by the Bank. Spot rectifications of the irregularities by the Branches, wherever possible, are encouraged and closure of the report with complete rectification of the irregularities within the stipulated time norms is followed up. A list of pending/residual irregularities, if any that have not been rectified at the time of closure of the previous inspection report is furnished to the auditors to confirm its rectification. 12.8 Procedure at Zonal offices pursue and ensure complete rectification of Controlling Offices irregularities, minor or serious in nature, recovery of seepage of income detected, before recommending closure of the inspection report. Closure of inspection reports is approved by Inspection & Audit Division in case of ELBs/VLBs and by Zonal Audit Offices 12.9 Audit by External Agencies in case of remaining branches. Selection of External Audit Firms for conducting concurrent/income audit or any other audit as well as appraisal of the performance of the External Audit Firms is carried out purely as per laid down guidelines of the Bank without any bias or prejudice and without any third party intervention. 12.10 Training In-house/external Induction/Refresher Training Programmes/ Workshops are arranged for Internal Auditors/External Audit Firms so as to update their knowledge/audit capabilities.

13. CREDIT CARD 13.1 Commitments The Bank will act fairly and reasonably in all its dealings with Credit Card Holder by: Meeting the commitments and standards in this Code, for the products and services that are offered and in the procedures and practices the Bank's staff follow. Making sure Bank's Credit Card services meet relevant laws and regulations. Ensuring that Bank's dealings with Credit Card Holders will rest on ethical principles of integrity and transparency. The Bank will not engage in any unlawful or unethical Consumer practices. The Bank will help the Card Holders to understand how the credit card products and services work by giving the Card Holders the following information in a simple language: What are the benefits to the Credit Card holders. How Credit Card holders can avail of the benefits What are the financial implications Whom the Credit Card holders can contact for addressing their queries and how 13.2 Confidentiality The Bank will treat all the personal information given in the Credit Card application forms as private & confidential (even when the Card holder is no longer a customer) unless required under statutory obligations or by law enforcing agencies or regulators, or in public interest. If Card holders ask the Bank to reveal the information, or if the Bank has Card holder's permission to provide such information to Bank's group/associate/entities or companies when the Bank has tie-up arrangements for providing other financial services/products, the information will be shared. 13.3 Recovery of dues Bank s Credit Card dues collection policy is built on courtesy, fair treatment and persuasion. The Bank believes in fostering customer confidence and long-term relationship. The Bank staff or any person authorized to represent the Bank in collection of dues or/and security repossession will identify himself/herself and interact with the Cardholder in a civil manner. The Bank will provide the Cardholder with all the information regarding dues and will give sufficient notice for payment of dues. The Bank's staff is governed by Model Code for Collection of dues and repossession of security, issued by the Indian Bank s Association.

13.4 Redressal of grievances As per RBI guidelines the terms and conditions of Credit Card are indicated on the reverse of the bill. The terms and conditions of the Credit Card are also available in its web site, www.corpbank.com. The Bank has a Grievance Redressal Cell within the organization. The Bank has furnished the details of grievance redressal mechanism in its website www.corpbank.com along with the names of the Authorities and their addresses. The Card holders may contact the Bank at the below mentioned address or email to hoccd@corpbank.co.in if the grievances are not redressed within 3 working days. The Chief Manager Credit Card Division Corporation Bank Head Office Mangaladevi temple Road Pandeshwar Mangalore 575 001

14. MARKETING 14.1 Information on products The Bank shall ensure that for each new (or potentially new) customer, Marketing Personnel/Branch officials shall give clear information on the key features of the product, the customer is interested in. 14.2 Communication The Bank shall ensure that all the communications/interactions with customers are clear, fair, reasonable and not misleading. 14.3 Products/services The Bank shall provide the customers with a broad range of financial services, products, some of which are the Bank's own products while some other are products of the Bank's group/associate/entities or Companies with whom the Bank has tie-up arrangements. The Bank shall however tell the customers about the Bank's associate/group entities or Companies having business tie-up arrangements with the Bank and if the customers so desire, direct their staff/agents for marketing their products.

15. PERSONNEL ADMINISTRATION AND HUMAN RESOURCES MANAGEMENT 15.1 Personnel Administration 15.1.1 Rotation of Duties Duties and responsibilities of each supervisory and clerical cadre employees be defined in relation to the work expected by each one of them and a system of rotation of duties be followed. 15.1.2 Managerial Autonomy for PSB's Discretion is given to Banks to lay down policy of accountability and responsibility of Bank officials and take action against the erring officials as per the policy. The policy guidelines are under preparation. 15.2 Human Resources Management 15.2.1 Recruitment Policy The Bank has a transparent recruitment policy reviewed from time to time. Shortening of recruitment process and resultant collapse of time frame is a positive aspect. This is attempted through campus recruitment. Further, with the introduction of common written exam under the aegis of Institute of Banking Personnel Selection on behalf of all the PSBs, the recruitment time is likely to be further collapsed. 15.2.2 People Engagement Policy 15.2.3 Motivational Schemes i) Training: Bank has developed multi-location training infrastructure to meet the skill development in various cadres. Specialized trainings are arranged for capacity building for the employees. Employees are nominated for various external and international institutions. ii) Bank encourages self-development through reimbursement of cost of the pre-announced professional courses. iii) Competency mapping: Based on the skills, exposure and competency career path is drawn for employees by placing them in suitable positions and responsibilities. iv) Career Path: Fast track promotion policy is put in place to provide opportunity to career oriented performers. v) Performance Appraisal: System of performance appraisal (PA) is put in place and used as a tool for evaluation and providing career to officers. Bank has promoted incentive and recognition schemes, based on performance. This helps employees to attain their fuller potential. Schemes like Chairman's Club Membership, various campaigns linked to Score Card, focus on recognizing employee contribution in business developmental endeavours of the Bank.

16. INVESTMENT & INTERNATIONAL BANKING 16.1 Foreign Exchange Transactions Branch level 16.1.1 Deposits NRE deposits: Accounts should be opened with the usual precautions. The antecedents of the NRI should be ascertained from the passport, overseas appointment letter etc. Clear instructions should be obtained regarding the currency in which the deposit is intended. Accordingly, FCNR account should be opened. The source of funds should be Remittance from abroad Transfer from another NRE account Conversion of foreign currency (FC) brought from abroad Interest etc. on investments from NRE sources The deposit receipt should be handed over to the depositor or his authorized representative. The overseas contact number / e-mail address of the NRI should be kept on record, to keep in touch with the depositor. 16.1.2. FCDL / FCTL / PCFC / EBR Loans 16.1.3. Pre-post shipment credits Any instruction from the NRI received from the representative must be cross-checked with the NRI for authenticity. In case of a B category branch, contact must be maintained with the link branch in respect of the deposit, its maturity, remittance of interest etc. Appropriate rates should be applied while converting NRE deposits from Rupee to Foreign Currency and vice versa Funds angle clearance should be obtained from Treasury Branch in each case of FCDL / FCTL and PCFC / EBR. This is applicable in case of renewals too. Forward contracts should be booked for repayments, wherever applicable The limits should be appropriately reduced from sanctioned Rupee limits of the borrower Opinion report of overseas buyers should be obtained before sanctioning post shipment limits RBI defaulters list and ECGC s Special Approval List should be verified before granting PCL / PCFC. The exporter should be impressed to obtain specific cover in such cases. Export order / LC / advance value of stock should be verified before releasing PCL / PCFC. Running account PCL / PCFC facility should be granted to only those exporters who have proven good track record. In case of PCL to deemed exporter, a letter confirming that no PCL has been granted should be taken from the bank of the Merchant Exporter.

16.1.4. Sale of Foreign Currency Non-Fund Based limits: While confirming LC opened by a foreign bank or issuing Bank Gaurantee on behalf of a foreign bank, clearance for country risk and Bank Exposure should be obtained from competent authority. Appropriate rates should be applied according to the value of the transaction. If amount is more than USD 3000 rates should be obtained from Treasury Branch stating the type of transaction. Appropriate rates should be applied for Bills and TTs Compliance of FEMA guidelines should be ensured. Appropriate declaration should be obtained from customers. 16.1.5. Clean Remittance Purpose and quantum should be in accordance with the FEMA Policy. Remittance should be preferably made through SWIFT and through our Correspondent Banks. Drafts : All precautions mentioned in the relevant Best Practice Code must be observed while issuing drafts. Name of the Bank and account number of beneficiary should be written on the draft. All remittances must be reconciled from the statement of account to ensure execution. 16.1.6. Import Bills Know Your Customer guidelines should be adhered to Bills, if drawn under own LC, must be verified with the LC. If any discrepancy is found, negotiating bank must be informed, and no payment should be entertained. In usance bills, Stamp duty as per the Stamp Act has been paid is to be ensured before releasing the bill. Demand bills should be presented immediately for payment. 16.1.7. Travellers Cheque (TC) & Foreign Currency Notes (FCN) Sale : The stocks should be periodically verified. Correct rates should be applied. Purchase : Care should be taken while purchasing TC or FCN. The list of stolen / lost TC should be verified as also security features. UV lamps may be used. Local address and passport details of the tenderer should be kept on record for any future reference. Compliance of FEMA provisions should be ensured. 16.1.8. Export Bills Negotiation : LCs established by correspondent banks should be authenticated on receipt. Bills should be verified with LC. If found to be drawn as per the terms of LC, the same should be negotiated and reimbursement obtained as per terms of Credit. Appropriate Bills buying rates should be applied Advance remittance, if obtained should be earmarked and certificate issued Transit period should be reckoned as per FEDAI guidelines 16.1.9. Forward Contracts Should be booked for genuine trade transactions only 16.1.10. Import Letters of Credit Should be opened against sanctioned limit. The material should be either under OGL or valid import licence It should be ensured before opening of LC that sufficient funds will be available for retiring the bills on due dates Extra care should be observed while opening usance LC

16.1.11. Crystallisation of Bills (Import) Demand Bills and usance bills in Foreign Currency should be crystallized on the 10 th day of receipt of the bill or on the date of maturity respectively 16.1.12. SWIFT The message should be fed only against authenticated input forms The message transmitted should be verified and authenticated as per laid down procedure Incoming messages should be authenticated 16.2. Treasury Operations Foreign Exchange 16.2.1. Functional separation Clear and functional separation of Front Office (Trading), Back Office (processing, control and Accounting) and Mid Office (Risk Control) should be ensured. 16.2.2. Place of dealing Only from office. Dealings to be done using approved communication media like telephones with recording system of Negotiated Dealing Systems like Reuters / NDS / EBS etc. No deal should be done by using mobile phone. Dealings are to be conducted during prescribed / approved intra-day hours of the bank. 16.2.3. Characteristics required in the Dealers The following characteristics are required in Forex Dealers : High level of knowledge, skills and fast reflexes Ability to take quick decisions Mental alertness and proactive disposition of mind Ability to keep cool under stress Willingness to accept responsibility Drive and aggressiveness Readiness to acknowledge and learn from mistakes High level of integrity 16.2.4. Training of Dealers Dealers should be properly trained in Foreign Exchange Bourse Programmes and other related programmes 16.2.5. Trading deals Trading deals are required to be concluded only with Banks for whom counterparty limits have been approved and these should 16.2.6. Overnight and daylight limits be within the limit. Trading should be done in approved currencies only Limits should be set up for pure trading with currency wise sub limits within the overall sanctioned limits to be reviewed from time to time 16.2.7. Functions of Mid Should independently analyse risks associated with trading Office activities 16.2.8. Managing Risks Risks involved in trading activities should be measured, analyzed, monitored and managed as per approved procedure. 16.2.9. Documentation to Reduce Legal Risks Reporting to various higher authorities should be done as per laid down system Deals not in line with market rates should not be permitted. The Mid Office and Back Office should ensure this.

16.2.10. Recording of deals Record of each transaction, showing the entire key data must be kept in the Back Office after the deal is concluded. Each deal should be recorded to determine the respective trading position. 16.2.11. Stop Loss Limits Market risk on foreign exchange open positions resulting from trading should be kept within allocated stop loss limits The maximum loss booked on any single day should be within the limit approved by the Board. Different action points must be triggered at the stipulated Cumulative Loss levels in a financial year and the strategies reviewed. 16.2.12. Strict confidentiality Strict confidentiality with respect to trades is to be maintained by all the concerned staff handling processes involved in trading activity 16.2.13. Other duties of a Dealers should not be associated with accounting and Dealer reconciliation work relating to dealing room activities 16.2.14. Compulsory leave All dealers must take minimum 2 weeks leave every year 16.2.15. Code of Conduct for All FOREX Dealers should give an undertaking to adhere to the Dealers 16.2.16. Concurrent Audits and Statutory Audits 16.2.17. Written Contingency Plans 16.2.18. Strict compliance with the RBI guidelines in the following areas Bank s laid down code of conduct for Forex Dealers The following areas should be put to audit by the concurrent auditor, statutory auditor and the Bank s internal auditors : Limit systems Determination and reconciliation of positions and profits / loss Completeness, correctness and timeliness of the internal reporting system Functional separation Degree to which the trades / deals are in line with market conditions Confirmations and counter confirmations All concerned should be aware of contingency plan (for ensuring among other things that in the event of breakdown of the technical equipment necessary for trading activities, back up facilities can be deployed at short notice) and their respective role in that plan. Organising Dealing Room set up Selection and training of Dealers Dealing procedures Code of Conduct for dealers as prescribed by FEDAI Accounting department (Back Office) operations 16.3. Treasury Operations Rupees 16.3.1. Investments All RBI guidelines for classification, valuation and operations of investment portfolio by bank should be complied with meticulously. 16.3.2. Functional separation Clear and functional separation of Front Office (Trading) Back Office (Processing, control and accounting) and Mid Office (Risk Control) should be ensured

16.3.3. Place of Dealing Only from office site. Dealings to be done using approved communication media like telephones with recording system or Negotiated Dealing systems like Reuters / NDS / EBS etc. except in case when EBS is not working. In that case dealing may be done through other phones after taking the permission from DGM. No deal should be done by using mobile phone. Dealings to be conducted during prescribed / approved intra-day hours of the bank. 16.3.4. Mid Office Should analyze risks associated with trading activities 16.3.5. Regulations - Regulatory, Listing and Ratings as suggested by RBI - Trading and settlements To adhere to the bye-laws of selfregulatory bodies like FIMMDA, PDAI, etc of which the bank is a member 16.3.6. Targeted Returns Should be fixed against the respective bench mark reference rates 16.3.7. Documentation to reduce Legal Risks - All trades should be based on clear and correctly documented agreements and market practice - Reporting to various higher authorities should be done as per laid down system - Deals not in line with market rates should generally not be permitted. If circumstances warrant, approval for deviation from competent authority should be obtained. The Mid Office and Back Office should ensure this. 16.3.8. Recording of deals A record of each transaction, showing all the key data must be kept in the Back Office after the deal is concluded. Each deal should be recorded to determine the respective trading position. Telephonic conversation should be recorded. 16.3.9. Concurrent Audits and Statutory Audits The following areas should put to audit by the concurrent auditor, statutory auditor and the Bank s internal auditors : Limit systems Determination & Reconciliation of positions and profits Changes in the edp systems Completeness, correctness and timeliness of the internal reporting system Functional separation Degree to which the trades / deals are in line with market conditions Confirmations 16.3.10. Cut Loss levels Different policies laid down for each of the categories to set up Cut Loss limits should be adhered to 16.3.11. Overshooting of limits The procedure for reacting to any overshooting of the cut loss and to extreme market developments should be adhered to 16.3.12. Contingency Plans All concerned should be aware of contingency plan (for ensuring among other things that in the event of breakdown of the technical equipment necessary for trading activities, back up facilities can be deployed at short notice) and their respective role in that plan.

16.3.13. Sub limits for brokers Deals routed through the brokers should be within the ceiling. The overall transaction that would be routed should not exceed the 5% ceiling to any single broker, as specified by RBI guidelines. 16.3.14. Strict Confidentiality Strict confidentiality with respect to trades is to be maintained by all the concerned staff handling processes involved in trading activity. 16.4. Policy for trading in Central Government Securities (CG-Sec) 16.4.1. Risk Management systems in Banks Guidelines circulated by RBI 16.4.2. Ceilings for Risk Positions 16.4.3. Risk Control & Risk Management The policy regarding volume, maximum maturity, holding period, duration stop loss, defeasance period, etc for classifying securities in the trading book should be observed meticulously Ceiling for risk positions for the CG Sec trading fixed by the Bank in the following instances should be adhered to : Total amount of positions outstanding at any point of time Total amount in an individual time bucket Maximum adverse movement permissible (Stop Loss) Defeasance Period The Risk Control and Risk Management system designed keeping in view the scale, complexity and risk content of the trading activities conducted or envisaged should be followed. 16.4.4 Counter party limits All trades except transactions in which amount has been remitted or is to be remitted on a delivery versus payment basis should be concluded only with contracting parties for whom counterparty limits have been sanctioned and within sanctioned limits. 16.4.5. Mid Office functions and monitoring The Back office should prepare reports on risk positions and the trading results every day 16.4.6. Defeasance Period Investments can be held in Held for Trading (HFT) for 90 days, before which they should be sold or a decision should be taken by an appropriate committee whether to transfer them to the Available for Sale category and make provisions as per the revaluation norms of RBI or to sell the scrip and book losses 16.5. Equity Investment 16.5.1. Equity Investments and total outstanding positions Investments can be held in Held for Trading (HFT) for 90 days, before which they should be sold or a decision should be taken by an appropriate committee whether to transfer them to the Available for Sale category and make provisions as per the revaluation norms of RBI or to sell the scrip and book losses

16.6. Policy on derivatives 16.6.1. Derivatives All deals undertaken in derivatives should be governed by scope, rules, legal framework, market practices and documentation prescribed in addition to the guidelines given by RBI, SEBI other non-regulatory bodies like ISDA, Fixed Income Money Market and Derivatives Association (FIMMDA), FEDAI, Clearing Corporation of India Ltd, etc. 16.6.2. Cut Loss levels Different policies laid down for cut loss limits should be adhered to 16.6.3. Know your customer Counter parties should be well identified as per KYC norms 16.6.4. Notional amounts - Ceilings for notional amounts on Risk positions for Futures, IRS, FRAs and Indian Rupee Cross Currency Interest Swaps should be observed - Trading should be undertaken only in instruments where market making is allowed by RBI - All the types of Derivatives dealing should be within the ceiling. 16.6.5. Policy for Hedging Policy for hedging the market risks inherent in banking business should be observed 16.6.6. Contracting parties and counter party limits 16.6.7. Risk Disclosure statement All trades must be concluded only with contracting parties for whom country party limits have been sanctioned and ISDA agreements signed The principles of Risk Disclosure Statement for Over-the-counter (OTC) derivative transactions should be adhered 16.7. Prudential guidelines on Bank s investment in Non-SLR Securities 16.7.1. Non-SLR securities Prudential guidelines should be observed regarding investments in Non-SLR securities The investment policy should be adhered to No investment should be made in unrated papers Prudential norms in unlisted non-slr securities to be adhered to Investments proposals in Non-SLR securities should be subjected to credit appraisal and rating Portfolio to be periodically reviewed Details of issuer composition of non-slr investments and the non performing non SLR investments to be disclosed in the balance sheet Trading and settlements should be as per SEBI guidelines 16.7.2. Market Repos with counterparties other than RBI Exposure limits fixed for counter parties should be adhered to

16.8. Code of Corporate Disclosure Practices for Prevention of Insider Trading in the Securities of CORPORATION BANK 16.8.1. Investment Policy The purpose of the Investment Policy is to create a broad framework within which the Treasury Department would take investment decisions based on Target return Target duration of the portfolio as determined by Investment Committee / Asset Liability Management Committee (ALCO) Liquidity considerations Credit Risk The compliance of the investment policy should be ensured 16.8.2. Parameters set by The parameters should be in accordance with the ALM policy of ALCO the Bank 16.8.3. Statutory prescriptions The Treasury Department to comply with statutory prescriptions relating to investments (SLR maintenance etc) in managing the Bank s portfolio. The investments should be within prudential limits fixed by RBI, in conformity with the BR Act 1949, and other applicable laws and guidelines that are issued by RBI, SEBI and other such bodies. While taking investment decision, among other things, default, liquidity and interest rate risks should be considered on the basis of available information. 17. SECURITY DIVISION 17.1 CCTV Surveillance All Branches will be provided with CCTV / DVR for an electronic surveillance, as confidence building measure among the clients as such and public at large. 17.2 Table Top Note Sorting Machines For providing expeditious customer service and convenience, all identified Branches are provided with Table Top Note Sorting Machines. 18. CUSTOMER SERVICE DIVISION 18.1 Customer Complaints and resolution of Grievance The following avenues are available to the customers for Redressal of their grievances. a) The customer can make complaint regarding the deficiencies in services to the branch official at the counter handling their transactions. If not satisfied, they can approach the Branch Manager for redressing their grievances. b) If the branch officials/ Manager are not ready to accept oral representations or if replies given by them are not satisfactory, the customers may make a written representation to the Branch Manager

18.2 Time frame for resolution of Grievance. 18.3 Nodal Officer and other designated Officials to handle complaints highlighting the specific instances of deficiencies in services. c) The customers may lodge a complaint against the branch in the " complaint book " available with the Branch Manager. A duplicate copy duly signed by the Branch Head will be furnished to the customer as an acknowledgement. d) Aggrieved customers may also make representations to the Zonal Head at Zonal Office and / or to the General Manager, Customer Service Division, H. O. whose name & address and phone Nos. are displayed on the Notice Board of the customers lounge at the branch. The address and telephone No. at H. O. is as under. The General Manager Customer Service Division Corporation Bank, P. B. No 88 Pandeshwar, MANGALORE-575001 Tel : 2426416 to 2426420, FAX : 2444161. Written complaints may also be sent to the Zonal Customer Service Cell situated at each of the major town/ centres. Customers may also register their complaint online in query@corpbank.co.in Branches: Within 7 working days. Zonal Offices: Within 15 working days. Head Office: Within 30 working days. a) Bank has nominated a Nodal officer of the rank of General Manager at its Head Office who will be responsible for the implementation of customer service and complaint handling for the entire bank. The bank has also nominated Customer Relation Officer at Zonal Offices to handle complaint grievances in respect of branches falling under their control. The names and contact details of Nodal Officers are displayed on the branch Notice Board. b) An aggrieved customer can also file a complaint with the Banking Ombudsman of the State concerned whose name and address and phone No. are displayed on the Notice Board in the customer lounge in the branch or this may be taken from the Branch Manager. However, before making a representation to Banking Ombudsman, the customer should ensure that at least one representation has been sent to the Bank concerned and grievances are not redressed properly by the Bank. It should also be ensured that the complaint is not more than a year old. c) An aggrieved customer can also send a complaint to District Forum under the Consumer Protection Act, 1986. In such cases, the customer concerned must have made at least one representation to the Bank previously and the customer has not received proper redressal. The address of the District Forum can be obtained locally. d) Customers may please note that anonymous complaints will not be entertained. 18.4 MITC Most Important Terms & Conditions (MITC) for important products ported in Bank s website.

19.1 Implementation of Official Language Policy in Bank 19.2 Official Language implementation & Information Technology 19.3 National Objective & customer facilitation. 19. OFFICIAL LANGUAGE DIVISION Use of Official Language Hindi in Bank is governed by the Official Languages Act, 1963 (as amended in 1967) and Official Language Rules, 1976 (as amended in 1987). As provided under the Act and Rules, Government of India, Ministry of Home Affairs, Department of Official Language issues broad guidelines and also the annual Programme for progressive use of Hindi, which is implemented by Bank. The Bank also implements the decision taken in the quarterly Official Language Implementation Committee Meetings of Public Sector Banks convened by the Department of Financial Services, Ministry of Finance and Department of Banking Operations and Development (DBOD), Reserve Bank of India. Official Language Implementation Committee set up at Head Office under the chairmanship of Chairman & Managing Director monitors the progress in the use of Hindi in the Bank through the quarterly meetings The bank shall endeavor to leverage IT for official language implementation so as to enable its staff as well as its customers to do their day-to-day work/transactions with the bank in official language. It shall be the endeavor of the Bank to fulfill the national objective of implementation of Official Language. The spirit behind implementation of Official Language would be to endear itself to its customers for business development by assimilating the ethos of national and regional culture of the country. 20. LEGAL SERVICES DIVISION 20.1 Empanelment of Advocates 20.2 Settlement of Death Claims 20.3 Seeking Information under RTI Act 20.4 CERSAI (Central Registry) The Bank empanels the advocates who are having the minimum five years experience and above in Civil side as per its requirement. The advocate has to submit the Bio Data along with other relevant documents as required by the Bank to the branch for empanelment. In case of death of an Account holder/depositor. the legal heirs have to submit claim application in the format along with other relevant documents prescribed by the Bank. The claim will be settled depending upon the delegated powers of the branch/zonal Office/Head office as the case may be. In case of nomination, payment will be made to the nominee after proper identification. A Citizen can seek information under the Right to Information Act, 2005 in the manner as required under the law by submitting prescribed fees. The information will be furnished unless otherwise same is exempted under the said Act. The charge created on the mortgaged property in favour of the Bank is being registered with the Central Registry [CERSAI] with effect from 31.03.2011.