AN

WINTER INTERNSHIP REPORT

ON

TRAINING UNDERTAKEN AT
“KANGRA CENTRAL CO-OPERATIVE BANK”
Submitted to
MCM DAV COLLEGE
as partial fulfilment for Degree of
Master of Business administration
Himachal Pradesh University Shimla
(2023-2025)

SUBMITTED BY:
AMAN KOUNDAL
UNIV. ROLL NO: 36231120004
CERTIFICATE

I
 DECLARATION

The report entitled “Banking Operation and Credit Management” is submitted to

“HIMACHAL PRADESH UNIVERSITY” is an original work done by me under the
Supervision & Guidance of Branch Manager Mrs. Vibhuti Vyas

The internship report has been done in the partial fulfilment of the requirements for the Master
of Business Administration. This report has not been previously submitted in any from to any
examination/institute/university.

The information which I included here is true and in original as per my best knowledge
and research, with taking possible references if any

DATE: SIGNATURE

PLACE : MCM DAV COLLEGE Smile dogra

II
 Acknowledgement

Writing this report after 8 weeks interning as an official staff in Kangra Central Co-operative
Bank Ltd. I was thankful and lucky having an opportunity active friendly as well as challenging
environment. I want to express my Gratitude to everyone who helped me to accomplish my
internship. First of all, I would like to thank to the PROF. Shubham Ahluwalia of MBA
Department for providing me with useful knowledge that can be applied on practical task at
Kangra Central Co-operative Bank Ltd Branch Rajiana 53 Mile. Secondly, I am greatly
indebted to our Branch Manager Vibhuti Vyas, Asst Manager Rajeev Kumar & Parvesh Kumar,
Clerk Naresh Chinoriya & Cashier Satish Kumar for their devotion and thoroughness in
supervising me during the internship. They were not only my bosses but also my mentors. In
addition, I would like to thanks my Colleagues, Thanks to everyone who supporting and
encouraging me to complete the internship report.

III
 TABLE OF CONTENTS

CHAPTER NO. CONTENT PAGE NO.

TITLE PAGE

CERTIFICATE i

DECLARATION ii

ACKNOWLEDGEMENT iii

CHAPTER 1 INTRODUCTION 1-4

1.1 OBJECTIVE
1.2 DURATION OF INTERNSSHIP

CHAPTER 2 OVERVIEW OF THE ORGANIZATION 5-20

CHAPTER 3 SPECIALIZATION 1 : FINANCE 21-41

CHAPTER 4 SPECIALIZATION 2: HUMAN RESOURCE 42-52

CHAPTER 5 EXECUTIVE SUMMARY 53-55

CHAPTER 6 CONCLUSION
56

REFERENCES SOURCE OF DATA 57

APPENDECIES BALANCE SHEET 58-79

 LIST OF TABLES

TABLE NO. TITLE PAGE NO.

TABLE 1.1. DURATION OF INTERNSHIP 3-9

TABLE 1.2 BANK PROFILE 10-12

TABLE 2.1 ORGANIZATION PROFILE 13-24

TABLE 3.1 WEEKLY PROGRESS REPORT 25-49

TABLE 4.1 – 4.5 TABLES OF CONTRIBUTION LEVELS 50-57

BALANCE SHEET 58
TABLE A

SERVICE CHARGES 59-79

TABLE B
 ABBREVIATION

• ATM- Automated Teller Machine.

• BOD- Board of Directors
• CAP- Credit Proposal
• CRR- Cash Reserve Ratio.
• CSD- Customer Service Department
• E – Banking Electronic Banking
• HP -Hire Purchase
• HR- Human Resources
• KCCB -Kangra Central Co -Operative Bank Ltd.
• KCC- Kisan Credit Card.
• KYC- Know Your Customers
• LTFD- Long Term Fixed Deposits NPA -Non-Performing Assets
• SSME -Small Scale & Medium Enterprises.
• SHG -Self Help Groups
 CHAPTER 1

INTRODUCTION

Internship program has become the bridge for those who want to enter to corporate level
from the college life, through internship I got to know the real working environment that
was very much different from my course study. During my internship, I got a chance to
work in the department about General Banking & Credit Management of Kangra Central
Co-operative Bank Limited how is it perform all operations. The term I spent at Kangra
Central Co-operative Bank Limited was more engaged with learning part through
assignments. All my experience helped me realize parts like grouping work, work
environment, peering support, carried out in the organization. Thus, the internship
duration provided me with the opportunity to broaden my knowledge, acknowledge my
strengths/weakness that would be more helpful to shape up my career in the future.

I had the privilege of undertaking an internship training program at KCC Bank, Rajiana
Kangra. This report is a culmination of my experiences and learnings gained during my
tenure at the bank, where I worked closely with various departments, gaining hands-on
exposure to the intricacies of financial services and Human Resource strategies.

During my internship, I had the opportunity to work with the Customer Service, Credit,
Cash, and Recovery departments, gaining insights into the operational dynamics of a
banking institution. I was involved in:

• Assisting customers with account-related queries and resolving issues

• Analyzing creditworthiness of loan applicants
• Managing cash transactions and ensuring compliance with banking
regulations
• Participating in recovery processes and understanding the importance of asset
quality
• Opening new bank accounts, which provided me with practical knowledge of
banking procedures and documentation requirements

In the realm of Human Resource, I contributed to awareness programs aimed at educating

the public about:

1
 • Fraud prevention and cybersecurity best practices
• Promoting government initiatives such as the EMPLOYEE PROVIDNET
FUND and EMPLOYEE STATE INSURANCE SCHEME
• Enhancing financial literacy among rural and semi-urban population

OVERVIEW OF REPORT

This report aims to provide a comprehensive overview of my internship experience,

highlighting the key takeaways, challenges faced, and the skills acquired during my
tenure at KCC Bank. It is hoped that this report will serve as a valuable documentation
of my learning experience and provide insights into the banking industry's best practices.

The report entitled “An Overview of General Banking & Credit Department’’ of The
Kangra Central Co-operative Bank Ltd has been prepared as partial fulfilment of the
requirement for the award of degree of Master of Business

Administration under the MBA program of Himachal Pradesh University (HP) The
internee got the opportunities to work at KCC Bank Ltd, one of the successful and
emerging banks in the Himachal Pradesh.

The report adds up the knowledge of how organization obtained the debt financing and
what sort of provision and criteria are required to meet to different types loan facilities
from the bank.

1.1 OBJECTIVES

• To understand the operational dynamics of KCC Bank and its various

departments
• To gain hands-on experience in finance and Human Resource functions
• To analyze the impact of government initiatives on banking services
• To identify areas of improvement and suggest recommendations for future
enhancements

1.2 DURATION OF INTERNSHIP

The Internship program endure for 8 weeks starting from 3rd Jan to 27th February 2025.
Internee has spent 8 weeks period in the following departments:

2
 Duration of internship in Different Departments

Sr. No. Name Of Departments Time Period in days

1 Credit Department 14

2 Customer Service 14
Department

3 Cash Department 14

4 Recovery Department 14

Table No. 1.1

3
 CHAPTER 2

OVERVIEW OF THE ORGANIZATION

BRIEF INTRODUCTION OF THE BANKING INDUSTRY

Meaning of the Bank

Bank is the lawful organization which accepts deposits that can be withdraw on demand,
pay interest, clear cheques act as an intermediary and make loan to individual and
business those need it A part from this bank also provides financial services such as
wealth management, currency exchange, Safe deposit, locker and vault facility.

Definition of Banking

According to Bank Regulation Act of India (1949)

“It defines banking as accepting, for the purpose of lending or investment of deposit pf
money the public, repayable on demand or otherwise or withdraw able by cheque, draft
order or otherwise.”

FUNCTIONS OF BANKS

Primary Functions: Accepting Deposits and Granting advance are the main primary
function of the bank.

Accepting Deposits: The bank collects deposits from the public. These deposits can be
different types such as:

• Saving Deposits
• Current Deposits
• Fixed Deposits
• Recurring Deposits.

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 Granting of Loan and Advances:

The bank advances loans to the business community and other members of the public.
The rate charged is higher than what pays on deposits.. The difference in the interest
rates ( lending rate and the deposit rate) is its profit. The types of bank loans and advances
are :

• Overdraft
• Loans
• Cash Credits
• Discounting of Bills of Exchange.

Functions of Banks

• PRIMARY
• FUNCTIONS SECONDARY
• FUNCTIONS
• ACCEPTING DEPOSIT
• GRANTING ADVANCESA
• AGENCY FUNCTION
• UTILITY FUNCTION

FUNCTIONS OF
BANKING

PRIMARY SECONDARY
FUNCTIONS
FUNCTIONS

GRANTING ADVANCES AGENCY FUNCTION UTILITY FUNCTION

ACCEPTING DEPOSITS

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SECONDARY FUNCTIONS: The bank performs a number of secondary functions,
also called as non-banking functions. These important secondary functions of banks are
explained below.

• Agency Functions

The bank act as an agent of its customers. The bank performs a number of agency
functions which includes:

• Transfer of funds.
• Portfolio Management.
• Collection of Cheques.
• Periodic Collection.
• Periodic Payments.
• Other Agency Functions.
• Utility Functions

The bank also performs general utility functions, such as:

• Issue of Drafts, Letters of Credits etc.

• Locker and ATM Facility.
• Underwriting of shares.
• Dealing in Foreign Exchange.
• Project Reports.
• Social welfare programs.
• Other utility functions.

CASH RESERVE RATIO:

Bank are required to maintain CRR ratio as prescribed by central bank. CRR is the
percentage of deposits liability to be retained by commercial bank and other deposit
money bank as prescribed by central bank.

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 INTRODUCTION OF KCC BANK LTD

The Kangra co-operative Bank Ltd started as very humble condition way as a small
thrift/credit society in March 1960 by a few friends of Distt. Kangra of Himachal Pradesh
to help out of the people of Himachal residing in Delhi to uplift their economic conditions
and tide over the financial hardships, Dedications, sincerity and honesty of those members
brought rich fruit and this credit society grew up into a big society within 12 years after its
formation and successful running was converted into primary urban cooperative bank in
1972 by RBI permitted to carry out to banking activities including acceptance of deposits
from non- members by opening their savings, current, RD A/c’s.23 years there from in june
1995 it was granted a license to carry out the banking business by

History of KCC Bank

Came into existence on 17th March 1920 (License No. RPCD.09/2009-10).

Indora Banking Union was merged and 2nd Branch of the Bank opened at Nurpur in Jan’1956
Palampur Banking Union was merged and 3rd Branch of the Bank opened at Palampur in Jan’1957
Nanaon Banking Union was merged and 4th Branch of the Bank opened at Hamirpur in Oct’1958
The Bank suffered losses because of the partition in 1947 to the tune of Rs.10.64 Lacs
In Mar 1962, the bank suffering from the setback of partition was granted Rs.4.09 Lacs by the Govt.
Govt also provided Interest Free Relief Loan of Rs.3.98 Lacs and Govt of India Loan of Rs.4.97 Lacs @
3.87% in 1962 In 1971-72
The Bank entered into the deposit mobilisation scheme of Pong Dam Area aggressively and secured
maximum share of Deposit Bank Deposits increased from Rs. 256 Lacs in 1971-72 to Rs. 1054 Lacs in
1973-74

8
 Welfare Schemes of Membership

• If form the membership of the bank existing as on 31st December 2013, any member
dies, his nominee will be given a death grant of Rs 25000/ from member welfare
Scheme and it and if he has taken any loan, then loan amount up to Rs 75000/ will be
exempted from interest.
• Any member enrolled after 31st December 2013 if dies before attaining a membership
of 10 years, his nominee will be given a death grant of RS 15000/ from Member
Welfare Scheme and Loan up to RS 50000/ if will be taken from exempted from
interest.
• Any Member enrolled after 31st December 2013 if dies after completing membership
of 10 years, his nominee will be given a death grant of RS 25000/ from Member
Welfare Scheme and Loan up to Rs. 75000/ if taken will be exempted from interest,
the second one is where scholarship @ 75000/, if taken will be exempted from
interest, the second one is where scholarship @ Rs. 150/ & 200/ per month is given
to the brilliant wards of the members and staff I and third one is to give one time
incentive to those wards of members who get 90% marks in Board Examination.
Amount of Incentive is Rs. 3100/ & RS 5100 for 10th & 12th class respectively.

COMMERCE & MANAGEMENT

Branches spread through-out the state of Himachal Pradesh. There are 85 branches of all
banks which are serving in the urban areas of the state, 250 branches are serving in the
semi urban areas and1331 branches are serving in the rural areas of the state. In order to
fulfil the demand of long-term credit, the Himachal Pradesh state co-operative agriculture
and rural development bank play in important role.
On the other hand, Kangra primary co-operative agriculture and rural development bank
which is located in Dharamshala provides medium- and long-term financial assistance for
agriculture and allied activities with its 16 branches in 3 Distt’s namely Kangra, Una,
Kangra. There are 5 urban co-operative banks eating to the credit needs to their members in
the urban areas of Himachal Pradesh.
As for as the rural short term credit co-operatives are concerned, there is an apex state
cooperative bank and 2 dist. central co-operative banks financing in the concerned districts

9
of their functioning areas. The Himachal Pradesh state cooperative bank is the apex bank
which also discharges its co-operative role as district central co-operative bank in 6 districts
Shimla, Kinnaur, and Sirmour respectively

Table No. 2.1

BANK Profile

Details of THE KANGRA CENTRAL CO-OPERATIVE BANK LTD, Rajiana 53 MILE

Bank: THE KANGRA CENTRAL CO-OPERATIVE BANK LTD

Address: TESHIL NAGROTA BAGWAN DISTT. KANGRA H.P.

State: HIMACHAL PRADESH

District: KANGRA

Branch: RAJIANA 53 MILE

Contact: MRS. VIBHUTI VYAS

IFSC Code: KACE0000126 (used for RTGS, IMPS and NEFT transactions)

Branch Code: 000126 (Last six characters of IFSC Code represent Branch code)

MICR Code: 176850176

About Branch Office RAJIANA (53 MILE) For The Financial Year 2025-26

Total Number of Employees = 6

designation of Branch Manager Mrs.VIBHUTI VYAS

Assistant Manager Mr. RAJEEV CHOUDHARY

Assistant Manager Mr. PARVESH KUMAR

Senior Clerk
Mr. NARESH
SENIOR KUMAR
CLERK
NARESH KUMAR

Cashier Mr. SATISH KUMAR

Peon Mr. PARVEEN KUMAR

10
• RAJIANA IFSC Code consists of 11 Characters: KACE0000126
• First 4 characters represent the entity (KACE#######)
• Fifth position has been defaulted with a '0' (Zero) for future use (####0######)
• Last 6 character denotes the RAJIANA branch identity (#####000126)

ORGANIZATION STRUCTURE OF KCC BANK LTD.

The management of affairs of the bank shall best as defined in the laws in the following bodies
and officers.

The General body shall determine the General Policy of the bank

• The Board Of Directors.

• The Executive Committee.
• The Managing Director.
• The General Manager.

ADMINISTRATIVE SET UP OF BANK

• Board of Directors.
• Chairman.
• Managing Director.
• General Manager.
• Deputy General Manager.
• Zonal Manager.
• Branch Manager.

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 The Kangra Central Co-Operative Bank RAJIANA Branch
Kangra, Himachal Pradesh Details

Kangra Central Bank RAJIANA (53 MILE) Branch Phone Number:

01892267493 Address: TESHIL NAGROTA BAGWAN DISTT.
KANGRA H.P. Email id of The Kangra Central Co-Operative Bank
RAJIANA Branch
PIN Code is:176056
Customer Care Toll Free No: 1800-180-8008
Email ID: support@kccb.in, mdkccb@bsnl.in, dgmkcc@dataone.in,
complaint@kccb.in, IFSC Code is KACE0000126, RAJIANA branch code
is 000126.
MICR No is 176850176

Contact No: +91 1892267493

MISSON:
• To strive hard to provide excellent customer services to its clientele..
• To promote trust , faith, confidence and commitment among the staff members to meet
the
expectations of the valued customers.
• To conduct its business effectively , so as to ensure growth and reasonable returns to its
Shareholders and to instil confidence in depositors .
• To maintain its top class ranking among Co-operative Bank in the National Capital
framing well thought policies and programmes to achieve sustained growth of business
through motivation and up- gradation of skills of staff and their active and effective
participation making use of the latest Information Technology

VISION:

To emerge as the most trusted, admired, sought after world class financial
institution, and to be the most preferred destination for every customer and
investor and a place of pride for its employees.

12
 Table No. 2.2

KCC BANK PROFILE

KCC Bank History
Come in existence in 17th March 1920. (License No.RPCD.09/2009-10)
Pioneer banking institution catering needs of public and co- operative societies in Kangra and Lahul Spiti.
Indora banking union was merged and 2nd branch open at Nurpur in Jan. 1956.
Palampur banking union was merged and 3rd branch of the bank opened at Palampur in Jan 1957.
4th Branch of the bank opened at Kangra in oct.1967.
Main Head Office Details Of Kcc Bank Ltd.
Leading Co – Operative bank in North India.
Head office Situated in Dharamshala Distt Kangra (H.P.)
Name Designation
Company Name The Kangra Central Co-Operative Bank Ltd.
Establishments Year March 1960
Chairman Mr. Kuldeep Singh Pathania
Vice- Chairman Mr. R.K Sharma
Managing Director Mr. Aditya Negi (IAS) Deputy
Registrar Mr. Sudhir Katoch General Manager.
Address: H.O. Kacheri Road, Jawahar Nagar Dharamshala, Distt. Kangra Himachal Pradesh
176215.Bank has tie ups Axis Bank, HDFC Bank and ICICI. Bank and also with Maruti Udyog Ltd.

13
 TECHNOLOGY

KCC Bank Ltd Operations in highly automated environment in term of information

Technology and communication systems. All the branches have online connectivity,
which enables the bank offer speedy funds transfer facilities to its customers.

The Bank’s business is supported by salable and rebuts systems which ensure the our
clients always get the finest services we offer.

In each of the business, the bank has succeeded in leveraging in market position.
Expertise and technology to create a competitive advantage and build market share.

BUSINESS

KCC Bank offers a wide range of commercial and transactional banking service and
treasury products to wholesale and retail customers. The Bank has two Business
Segements

• Whole Sale Banking Services

• Retail Banking Services

WHOLE SALE BANKING SERVICES:

• Large Range of small and mid-size and agricultural business.

• Provide commercial and Transactional banking services.
• It includes working capital finance, trade services, transaction services, cash
management etc.
• Provide Insurance policies in whole customers.

RETAIL BANKING SERVICES:

It provides Target Market customers a full range of the financial products and banking
services, giving the customer a one stop window for all banking requirements.

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Vision Document For 2025 -26 to 2026 – 27

All the branches are fully computerized with CBS. The implementations of CTS, NEFT/
RTGS, ATM has already been done . Board of Directors has also prepared a “ VISION
DOCUMENT” for 2025-26 to 2026-27 according to which various targets have been
fixed.

• Membership has been planned up to 48,000.

• Share Money up to 31 cores.
• Deposits to increase 850 crores from 730 crores.
• Efforts will be made to maintain the highest percentage of dividend clienntent
1.50 lakhs.
• ATM Card holders up to 17000.
• To purchase two buildings.
• To be Eligible for schduled status.
• To open two Branches.
• To computerized HO & CRD
• To get “A” RBI inspection Rating.
• To Open onside ATM’s in all branches. To make customer service quick and
satisfactory. To Arrange minimum two lectures in a year on important topics such
as
• Investment Schemes.
• NPA, Credit Appraisal, KYC Norms.
• Customer Services.
• Internal Control Profitability.
• To Maintain Net NPA 0 % and gross NPA not more than 4.5%.

Deposit Policy

Customers are most important visitors in our premises they are not dependent on us we
are dependent on them. We are determined served them in particular and our community
as a whole in general with smile to their utmost satisfaction through co-operatives.
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Types of Deposit Accounts

• Saving Account
• Current Account
• Term Deposit Account

Saving Bank Account

Saving Bank account is very name suggest that is intended for savings for the Future.

There are no restrictions on the number and amount of deposit that can be made on any
day. Minimum amount of withdrawal /deposit is RS 10. Balance in the account earns
interest Rate by the Head Office from time to time. The facility of withdrawal by cheque
is also allowed subject to certain organisations and agencies as approved by RBI.

As required by Law, while opening the account we will satisfy ourselves about the
identity, including verification of address of a person seeking to open an account, to assist
in protecting the prospective customers, members of the public and ourselves against
fraud and other misuse of the banking system duly observing know your customers
(KYC) guidelines of RBI.

Current Account:

Current Accounts are designed to meet of the needs of such sections of the public who
operate their account regularly and frequently. Traders, Businessmen, corporate bodies
or the like who receive money and make payment very often. Current Accounts are
suitable to such category of customers as there are no restrictions on the number of
withdrawals or deposit. It can be opened by:

• Individuals.
• Partnership Firms
• Private and Public Ltd. Co. 4. HUF’s / Specified associates.
• Societies and Trust Etc.

16
Term Deposit Account

The Deposit Received by the bank for a fixed period withdraw after the expiry of the
fixed period and include deposits such as Recurring and Fixed Deposits Etc.

Term Deposit can be opened by

• Individuals and Partnership Firms.

• Private and Public Ltd Companies.
• HUF and Societies /Trusts Etc.

General Accounts

• Joint Account.
• Special Type Account.
• Minor Accounts
• Accounts of illitrate Persons.
• Account of Blind Persons.
• Repayment under joint accounts.

Depositors Rights

• Right to INFORMATION

A deposit will have right to information about charges, quality or standard of the services
offered by the bank to enable him/her to take an independent decision.

Right to CHOOSE

A depositor will have the absolute freedom to choose among the various services offered
by the bank to suit his/ her requirements.

• Right to Utilize the PRODUCTS & SERVICES

To right a depositor chooses and utilise of Products & services according to our facility

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PERSONAL BANKING PRODUCTS & SERVICES PRODUCT

SCOPE

Kcc Bank Ltd Offers a bunch of Products and services to meet every need of people.

The Company Cares for both individuals as well as corporate and small and Medium
entreprises. For Individuals and cards assist the customers.

The customers are choosing the suitable one from a range of products which will suit
their life stage and needs. For organization the company has a host of customised solution
the range from funded.

ACCOUNTS & DEPOSITS

Saving Account

• Saving Plus Account

• Saving Max Account
• Senior citizen Account
• Insitutional Savings Account
• Payroll Salary Account
• Clasic Salary Account
• Regular Salary Account
• Pension Saving Account Family Saving Account
• Kisan Saving Account.

Current Account

• Plus Current Account

• Trade Current Account
• Premium Current Account
• Regular Current Account
• Max Current Account
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Fixed Deposit Account

• Regular Fixed Account

• Super Saver Account
• Sweep In Account
• Recurring Deposit Account
• Demat Account
• Safe Deposit Locker.

LOANS

• Personal Loans
• Home loans
• Two-Wheeler Loans
• New Car Loans
• Used Car Loans
• Commercial vehicle Finance
• Working Capital Finance
• Construction Finance
• Investment and Insurance
• Mudra Gold Bar

FOREX SERVICES

• Trade Finance
• Foreign Currency Cheques & Deposits
• Payment Services
• Visa Money Transfer
• NEFT & RTGS Services.
• Mobile & Internet Banking
• Branch Network
• ATM & Locker Facilities.

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CARDS

• Silver Credit Card

• Gold Credit Card
• Women’s Gold Credit Card
• Platinum Plus Credit Card
• Value Plus Credit Card
• Health Plus Credit Card
• KCC Bank Idea Silver Credit Card
• KCC Bank Idea Gold Card
• Wholesale Banking Services
• Funded Services
• Non- Funded Services
• Value Added Services
• Internet Banking
• Corporate Salary Account
• Tax Collection

NRI Banking Services

• Rupee Saving Account

• Rupee Current Accounts
• Rupee Fixed Deposits
• Foreign Currency Deposits
• Accounts for Returning India

20
 CHAPTER 3

SPECIALIZATION 1: FINANCE

3.1 SWOT ANALYSIS

Introduction of SWOT Analyses

A SWOT analyses is a structure planning method used to evaluate the strengths,

weakness, opportunities and threats involve in a project or in a business venture. A
SWOT analyses can be carried out for a project, place, company, firm or person. It
involves specifying the objectives Organization or project and identifying the internal
and external factor that are favourable and unfavourable to achieve the objectives. The
degree to which the internal environment of firm matches with the external
environments expressed by the concept of strategic fit.

STRENGTHS:

• Established Brand and Trust: With over a century of service, KCCB has built a
strong reputation for reliability and customer trust in the region.
• Customer-Centric Approach: The bank is known for its customer-friendly staff and
personalized service, fostering long-term relationships.
• Strong Rural Presence: KCCB has a significant presence in rural areas, catering to
the financial needs of the agricultural community and small-scale industries.
• Competitive Interest Rates: The bank offers higher interest rates on deposits
compared to many other banks, attracting a steady inflow of funds.

WEAKNESS:

• Limited Awareness of Services: Many customers are not fully aware of the diverse
services offered by the bank, which can limit its growth potential.
• Geographical Concentration: Operations are mainly concentrated in three districts,
restricting the bank's reach and expansion opportunities.

21
• Complex Loan Documentation: The loan application process can be cumbersome,
deterring potential borrowers.
• Dependence on Manual Processes: Some branches may still rely on manual
operations, leading to inefficiencies and longer processing times.

OPPORTUNITY:

• Expansion to New Districts: There is potential for KCCB to expand its services to
other districts in Himachal Pradesh, increasing its customer base.
• Digital Transformation: Investing in digital banking solutions can enhance customer
experience and streamline operations.
• Awareness Campaigns: Launching Human Resource campaigns can educate customers
• about the full range of services offered, leading to increased utilization.
• Tailored Financial Products: Developing new loan schemes to cater to the needs of
the weaker sections of society can broaden the bank's customer base

THREATS:

• Intense Competition: The banking sector is highly competitive, with numerous

banks vying for market share, which can pressure KCCB's growth and profitability.
• Economic Fluctuations: Economic downturns can affect borrowers' repayment
capabilities, leading to an increase in non-performing assets (NPAs).
• Regulatory Changes: Changes in banking regulations can impact operational
procedures and compliance requirements.
• Technological Advancements: The rapid pace of technological change requires
continuous investment to keep up with industry standards.

RECOMMENDATION:

• Enhance Digital Infrastructure: Investing in digital platforms can improve service

delivery and customer satisfaction.
• Simplify Loan Processes: Streamlining loan documentation and approval processes
can attract more borrowers.

22
• Expand Outreach Programs: Conducting financial literacy programs can increase
awareness of the bank's services.
• Diversify Service Offerings: Introducing new financial products tailored to the
needs of different customer segments can drive growth.

3.2 SPECIALIZATION 1: FINANCE

• This report is a comprehensive documentation of my internship experience at

KCC Bank, Rajiana, Kangra, where I specialized in Finance and Human
Resource. The internship provided me with a unique opportunity to apply
theoretical knowledge in a real-world setting, gaining hands-on experience in
various finance departments.
• During my tenure, I worked closely with different departments, including
Customer Service, Credit, Cash, and Recovery. In the Customer Service
department, I assisted customers with account-related queries, issue resolution,
and provided guidance on banking products and services. This experience taught
me the importance of effective communication, problem-solving, and customer
relationship management.
• In the Credit department, I analyzed creditworthiness of loan applicants,
evaluated credit risks, and understood the credit assessment process. This
experience helped me develop analytical skills, attention to detail, and
understanding of credit management principles.
• In the Cash department, I managed cash transactions, ensured compliance with
banking regulations, and maintained accurate records. This experience taught me
the importance of accuracy, attention to detail, and adherence to regulatory
requirements.
• In the Recovery department, I participated in recovery processes, understood
asset quality and risk management, and developed strategies for effective
recovery. This experience helped me understand the importance of risk
management, negotiation, and communication skills.

23
• Additionally, I was involved in opening different types of bank accounts, gaining
practical knowledge of banking procedures and documentation requirements.
This experience taught me the importance of attention to detail, accuracy, and
customer satisfaction.
• Through this internship, I gained valuable insights into banking operations,
financial services, and customer relationship management. I developed essential
skills in finance and Human Resource, including analytical skills, problem-
solving, communication, and attention to detail.
• This report documents my experiences, learnings, and observations during the
internship, highlighting challenges faced and skills acquired. It provides a
comprehensive overview of my internship, demonstrating the practical
application of finance and Human Resource concepts in the banking industry.
• The report aims to showcase my learning outcomes, provide insights into KCC
Bank's best practices, and serve as a valuable resource for future reference. I am
grateful for the opportunity to have interned at KCC Bank, Rajiana, Kangra, and
I am confident that the skills and knowledge gained will benefit me in my future
endeavours.
• Overall, my internship experience at KCC Bank was enriching and informative,
providing me with a deeper understanding of the banking industry and its
operations. I look forward to applying the skills and knowledge gained in my
future endeavours and contributing to the growth and development of the banking
sector.

24
Table No. 3.1

25
CUSTOMER SERVICE DEPARTMENT

Customer service is an important, but broad concept in the banking industry. In essence,
banks are service-based businesses, so most of their activities involve elements of service.
While they do sell banking and financial products, there is often little tangible product
variation among their offerings. Customer service managers generally deal directly with
service issues, but several other common banking jobs involve service. Teller
An often-underappreciated element of a bank's service is the level of friendliness and
helpfulness offered by front line service employees. Tellers essentially serve as the "face" of
the bank to regular customers. They're the ones visitors typically interact with for routine
checking and savings transactions. Thus, service-oriented, helpful people in these roles greatly
affects a bank's customer service performance and reputation.

Personal Bankers
For customers with more involving banking needs, personal bankers usually enter the picture.
Bankers generally meet with customers interested in setting up new accounts or getting more
information on banking products. They also handle many of the issues or problems customers
have, such as unexpected bank fees or transaction errors. Banks do often have customer service
managers that step in to deal with the most significant customer service concerns. Loans
The loan or finance side of banks has its own customer service situations and processes as well.
Mortgage consultants inform customers about new loan and refinance options and help with
applications. During and after the loan approval process, members of a bank's loan division
communicate with the customer about any paperwork requirements. They also update them on
their loan status. Loan officers and service employees also field loan payment and servicing
questions from existing loan customers.

Self-Service
Ironically, one area in which bank customer service is assessed is in its provision of self -service
banking tools. In the early 21st century, customers are often more concerned with banking
efficiency than the personalized in-branch experience. Online banking tools, including the
ability to move money between accounts and to pay bills online, are examples. ATMs and
mobile banking are additional options banks often provide to customers looking for self-service
opportunities.

26
DUTIES & RESPONSIBILITIES OF A CUSTOMER SERVICE
REPRESENTATIVE

A customer service representative interacts with a company’s customers to provide them with
information to address inquiries regarding products and services. In addition, they deal with
and help resolve any customer complaints. For instance, a customer representative may assist
you in opening an account or help you to resolve a problem if you cannot access your account
or if your order never arrived. Usually, customer service representatives gather their
information via a telephone call.

Handling Problems
Customer inquiries often involve some form of complaint that the customer service
representative must handle in accordance with the company’s guidelines and policies.
Sometimes, the representatives may attempt to solve the problems or at least propose some
solutions. Some representatives may also be authorized to send customers their replacement
products or reverse erroneous fees. Others may function like gatekeepers, getting information
on the problem and passing it along to someone else to solve. Customer service
representatives must make sure first that the complaints made are valid and must do whatever
they can--within the bounds of their authority--to make sure the customer is satisfied when he
hangs up the phone.

Assisting in Sales
Selling the company’s products and services may be part of a customer service
representatives’ job, even though he may not be part of the sales division. Some
representatives may provide product or service information to assist customers in making a
decision about a product to buy. Customer service representatives may also help generate
sales leads. For instance, after addressing a customer’s inquiry, the representative may
attempt to sell them some new products upgrades. For instance, he may suggest upgrading
your cable service.

Clerical Tasks
The job of a customer service representative may also involve clerical responsibilities. Such
duties may involve answering telephone calls and making the appropriate transfers. For
example, when a customer makes an inquiry about Internet broadband, the representative can

27
transfer the call to a technical service representative. Other duties include processing new
client accounts, maintaining customer accounts, implementing changes to existing accounts
and filing documents and other paperwork.

Job Specific Responsibilities

Almost all types of organizations employ customer service representatives and often their
duties and responsibilities vary depending on the type of the organization and industry.
For example, customer service representatives who work in banks may have similar
duties to bank tellers, counting money, cashing checks and servicing accounts. Those
working in insurance companies may be required to handle paperwork dealing with
policy renewals. Customer service representatives who work for communication and
utility companies may assist customers who have outage or other service problems.

CREDIT DEPARTMENT

Functions of Credit Administration Department:

Basic principles of Loans & Advances:

• Aggregate loans and advances shall not exceed the Bank’s net worth or 65% of
customers deposit whichever is lower (excluding loans and advances covered by
specific counter -finance arrangements).

• Within the aggregate limit of loans and advances as mentioned in (1) above 50% of
lending will be small industry sector in accordance with prescribed norms of the
government and the Central Bank in terms of the banks objectives with 50% to the
commercial sector. No term loans will be approved for the commercial sector.
Exceptions will be rare and will require approval of the Executive Committee.

• All lending will be adequately secured with acceptable security and margin
requirement as laid down by the Head office credit committee.

• The bank shall not incur any uncovered foreign exchange risk (currency exposure) in
the lending of funds.
28
• The Bank shall not incur any risk of exposure in respect of unmatched rates of Interest
of funding of loans and advances beyond 15% of outstanding loans and Advances.
• End - Use of working capital facilities will be closely monitored to ensure lending
used for the purpose for which they were advanced.

• Country risk in loans and advances will be accurately identified and shall be within
the country limits if any approved for the bank. The same treatment will be given to
country risk arising out of contingent liabilities relating to Letters of credit and letters
of guarantee.

• Loans and advances shall be normally funded from customers’ deposits of a

permanent nature, and not out of short-term temporary funds of borrowings from
other banks or through short-term money market operations.

• The aggregate outstanding loans and advances (excluding loans advances covered by
specific counter finance arrangement) shall be dispersed according to the follow in
guidelines (subject to item above whereby 50% of lending being to small industry
sector).

• Spreads over cost of funds on loans and advances and commissions and fees on other
transactions should be commensurate with the rating of the borrower, quality or risk
and the prevailing market conditions.

• Credit risk evaluation will include an accurate appraisal of risk in any credit exposure
is highly subjective matter involving quantitative and qualitative judgments. The
financial statements of the borrower do not always provide a complete picture of the
borrower

29
CASH DEPARTMENT

Cash is the most volatile and liquid Current Asset of Bank’s Balance Sheet and as such it
demands special attention of Efficient Management. Cash Department plays a paramount role
in creating good perception among the customers about the services of a bank. Cash incharge,
ideally a senior level officer with direct experience in cash management shall be responsible
in performing good cash management. good Cash Management constitutes the following roles.

Receipt of Cash
Before receiving cash from depositors in Pay-in-Slip / Credit Voucher the concerned cash
official(s) shall:

• Verify / check
• Title of Account,
• A/C Number,
• Amount in Words and Figures,
• Date, etc. written on Pay in Slip / Credit Vouchers with the records of
computer program and shall satisfy on their correctness and
genuineness.
• Carefully check and Count the Currency Notes
• Write down denomination
• Affix Cash Received stamp
• Make entry of particulars of the Cash Received
• Verify entries / Particulars of Pay-in-Slip / Credit Voucher with those of the Cash
Receiving Register
• Keep Cash in the Drawer of Cash Counter under lock and Key (within Counter limit)
during transaction hours.

30
PAYMENT OF CASH
While Paying Cash against debit instruments namely Cheques, Demand Drafts (DD), Pay
Order (PO), Pay Slip (PS), SDR, FDR, etc. and also against other debit instruments issued
under scheme deposits of the Branch as well as Cash Debit Vouchers, the following
formalities have to observed.
• Verify Genuineness & Authenticity of the instrument, make posting, passing &
cancellation of the Cheques and, thereafter, count relevant cash and note down
denominations there against on reverse/ back side of respective instruments/ vouchers.
• Obtain 2nd signature of payee/ recipients on the back of the instruments, affixing
stamp and cancellation of instruments.
• Enter particulars of instruments/ Cheque in Cash payment register in Serial order and
write down that serial number in a red circle to be made on the face of the
instruments.
• And finally after completion of all above formalities the Cash official, upon
satisfaction, shall pay/ handover cash against the instrument/ cheque to the payee/
Recipients.
• However, paying cash official(s) shall hold all paid debit instrument(s) until cash is
closed and handed over to Cash-in-charge at the close of business.

Balancing of Cash Receiving Register

After receipt of total cash during the day the ‘Cash Receiving Official’ shall (i) aggregate the
amount after the last entry in the ‘Cash Receiving Register’, (ii) write down the total amount
in words and figure under the summation and ensure that it is okay and the figure agrees with
the computer-generated supplementary figure.

Balancing of Cash Payment Register

Paying Cash shall accomplish the following formalities:

• Make date-wise entry of all payment Vouchers in “Cash Payment Register” in serial
order.
• Make sure that total amount of such payments of the day agrees with the total amount
shown in the parallel computer generated supplementary.

31
 • Write down the total amount of cash paid during the day both in words and figures in
‘Cash Payment Register’ and authenticate the same by full signature.

Writing and Checking of Cash Balance Book

After Balancing of (i) Cash Receiving Register and (ii) Cash Payment Register by the
respective Cash Officials, Cash In-Charge shall prepare and sign the Cash Balance Book and
shall submit the same to the Deposit In-charge/Manager Operation (MoP), who, upon
satisfaction about its accuracy and genuineness shall authenticate the same by his / her
countersignature thereon.

Checking / Closing of Cash and writing of Cash Position Memo

At the end of day’s Cash transaction Cash In-charge shall Count, Sort and Balance the
remaining cash
(after receipt & payment) and shall prepare and sign the Cash
Position Memo. However, Deposit In-charge / Manager Operation shall check and confirm
that the figures mentioned in the Cash Position Memo agree with the total figures of (i) Cash
Payment Register, (ii) Cash Receiving Register and (iii) Daily Affairs (cash in hand figure)
and, upon satisfaction, shall authenticate the Cash Position Memo by his full signature /
countersignature.

Safe Custody of Cash (after transaction) over night

Cash balance of the counter at the end of a day together with Cash in Safe (if any) shall be
preserved in the ‘Fire Proof Iron Safe’ of Branch’s Vault for Safe-TripleCustody until next
reopening of the Vault. But before storing cash in the Iron Safe, the Triple Custodian shall
additionally ensure that entire cash i.e. Closing Balance of the day as per Cash Position Book
(Balance Cash of Cash Counter and remaining Cash Iron Safe) are accurate and correct.

32
Vault Register

Cash In-Charge shall Maintain Vault Register for keeping record of Cash Movement to and
from the Iron Safe. Denominations of Cash in Hand mentioned in the Cash Balance Book
must match with the denominations recorded in the Vault Register at the end of day’s
transaction.

Cash-in-safe, Cash-on-Counter and Cash-in-Transit Limit

Branch must handle cash within Cash-in-Safe, Cash-on-Counter and Cash-in-Transit Limit
duly approved by Head Office. Excess cash over the approved limit shall not be held in the
Branch at any time either on Counter or in Iron Safe. However, the Cash In-charge, under due
record & acknowledgment in the relevant register, shall immediately move the Excess Cash
of the counter, to the Strong Room during transaction hours.

Cash Enclosure
Access of unauthorized person(s), including officials of other departments, to the Cash
Enclosure of the Branch, is strictly prohibited. Only the officials working in the Cash
Department shall have access to the Cash enclosure but normally they will not be allowed to
go outside the Bank premises until entire cash is balanced and handed over to the Cash-in-
Charge. Counting, Stitching / Banding of cash (as per instructions / guidelines of Bangladesh
Bank/ Head Office) should be made inside Cash Enclosure by the concerned staff(s) who will
not be allowed to leave Cash enclosure until cash is duly handed over to the Cash-in-charge
in his full satisfaction & acknowledgement.

Safety / Security of Strong Room during Transaction Hours

Strong Room / Vault must be kept Closed / Locked during transactions hours under
Joint Control of two key holders from Triple Custodians and both the Joint Controllers must
be present whenever the strong room is re-opened during the Day / Office Hours. Cash In-
charge must keep his / her hand balance (exceeding counter limit) in a steel box under lock &
key in the strong room.

33
Maintaining vault limit
Branch has to ensure the vault/cash in safe limit as set by the Head Office time to time. Cash
in excess of vault has to be deposited immediately with BB/Sonali Bank or designated cash
feeding branch.

Security Measure of Cash-in-Transit

Branch shall ensure adequate and effective security measures while carrying cash to and from
link branches of the Bank and Bangladesh Bank / any other banks, where the branch maintains
Bankers’ Account.

Rotation of Cash Officers’ Duty

Rotation of duties between Paying and Receiving Cash Officials should be made at regular
monthly frequency.

Surprise Verification of Cash

Head of Branch (HoB) shall make surprise verification by physical counting of entire Cash-
in-Safe at least once a month and shall confirm its accuracy with the remarks “Entire Cash
Checked and Found Correct” on the particular page of Cash Position Book under his / her
signature.

Recording Denomination of Note(s) / Coin(s)

Cash at Bank (in hand, in iron Safe / Vault and on counter of Branch) is to be noted down
denomination-wise in Cash Position Book and that denomination must go with the
denomination to be recorded in the Vault Register at the end of transaction of the day. Again,
cash official shall record denominations of all the cash received and paid daily on the back of
each respective credit and debit voucher.

Packing / Banding of Currency Notes

Currency notes in till of the Branch are to be packed denomination-wise separately with 100
pieces in each packet and those packets shall be stitched / banded as per specification of
Bangladesh Bank. A cash slip (fly leaf) bending at left side of each packet is to be passed and
signed by the official who has counted / verified the notes in the packet. Branch’s rubber stamp
(round seal) is to be affixed on both sides of each packet covering part of Cash Slip (fly leaf)
and a part of the currency notes. Cash balance with less than 100 pieces notes (unstitched /
unbanded) is to be kept denomination-wise in separate loose packets. 10 packets of 100 pieces
34
notes in each packet (100 x 10) shall make a ring / bundle which should be tied up with rope
and stacked denomination-wise in Fireproof Iron Safe(s) under Triple Custody.

Soiled Notes

Branch, with due record in a register, shall always keep Soiled and Mutilated Notes separated
from the notes for circulation and shall arrange Change of the same at necessary interval from
Bangladesh Bank / Sonali Bank Ltd. / Main Branch of the Bank to avoid irrational
accumulation.

Forged Notes

Whenever a forged note is detected in branch the matter must be brought to the notice of Head
of Branch (HoB) for disposal in the light of directives issued by Bangladesh Bank.

Coins to be kept in Bags

Coins should be kept denomination wise in bags of uniform size. A Cash Slip Form, with
description of the coin, signed by two officials who counted and checked them, should be
placed inside each coin bag. Bags full of Coins are to be stored in the Iron safe in orderly
manner. All coin bags in Iron Safe are to be checked to ascertain genuineness and accuracy of
its contents.

Cash Shortage / Discrepancy

Any discrepancy in cash (excess payment / short receipt, forged, mutilated, counterfeit, notes,
etc.) should immediately be brought to the notice of Head of Branch (HoB), who, upon its
enormity, (particularly Cash shortage and forged notes), shall inform Head Office right away.
If shortfall is caused due to less receipt / excess payment, branch authority shall recover the
amount from concerned cash official(s) and or from the concerned customer(s) if he is
identified to be liable or culpable. On failure to recover at the end of the day, the said shortfall
shall have to be covered / made up by debiting “Suspense A/C Cash Shortage” with the
concurrence of Head Office / Controlling Office. Outstanding entry so created in “Suspense
A/C Cash Shortage shall have to be reversed at the earliest by recovering / realizing the money
from the delinquent official(s) and or customer(s) or from both as per their involvement in the

35
matter. However, Police Action, if required, shall be taken in time against delinquent
official(s) / customer(s) in concurrence with Head Office.

Purchase & Sale of Prize Bond:

When a customer placed the prize bond over the counter, cash official checks the authenticity
of the prize bond. Then, he/she put the serial number of the prize bond into the prize bond and
in the purchase register. Then he/she issues cash debit voucher and pay cash to the customer.

When the customer approaches the cash official to buy the prize bond, the cash official receives
the money in cash of the said prize bond. Then, he/she out the prize bond from prize bond in
hand register serially following first in first out (FIFO) method. Then he/she issues cash credit
voucher and handover the prize bond to the customer.

Note: during the purchase and sale of prize bond, the cash in charge must sign the register with
counter sign by the Deposit in charge/Manager Operation (MoP).

Sales of Lottery Ticket

Banks usually serve some social activities such as selling tickets for the help of the society. In
this regard, branch always follow the instruction of Head Office.

Receipt of Utility Bills

Cash receiving officer receive the utility bills as per contract of bill authority (BTRC/Grameen
Phone/Titas Gas etc.). Cash receiving officer receive the utility bills after proper stamping,
affixing seal and sign on it. At the end of the day the entire received amount deposited to a
collection A/C & at the end of the month bank remit the entire bill amount as per contract.

Receipt of Cash After Banking Hours (Evening Banking)

A particular branch, when licensed by Bangladesh Bank, for ‘Evening Banking’ Operation
shall receive cash within fixed period of time after closing of the normal transaction of the day
by observing the following procedures:

36
 • Procedure for receiving cash shall be the same as explained earlier under the caption,
‘Receipt of Cash’. A separate Evening Banking Cash Receiving Register called
“Evening Banking Register” have to maintain.
• Cash received during Evening Banking Hours together with the relevant Deposit Slip /
Pay-in-Slip is to be preserved separately in the Iron Safe within the strong room under
Triple Safe Custody as per usual banking practice.

RECOVERY DEPARTMENT

In the Recovery Department we have done a lot of things. Our manager Assigned us a work in
the field. In this field we have given aN address of that default person who have taken a loan
from KCC Bank but they not give instalments in proper time. Our work is just informed him
give instalment in timely otherwise they have given instalments + Penalty.

3.2.1 WEEKLY PRACTICAL WORK REPORT IN DETAILS

1st WEEK: (3-10 JAN)

Work Assignment: Know about the Bank Management System.

Objective:

In the first week we have to assigned a work of know about the bank. In this work we have
known the history about the bank. & also know about the how is it work

Learning of the week:

I have known about a lot of things in this week like as how the bank can perform all the
operations

2nd WEEK: (10-17 JAN)

Work Assignment: How to opening a New Accounts in Bank:

Objective: To gain the Practical Knowledge Of opening an Accounts:

37
This is the primary and important function of bank employees. Also, it is my objective of how
to open a new account.

Accounts are not personal also take different type accounts internship period.

Learning of the Week:

I learn about how to open a new bank account. In this stage, I follow some steps:

• Fill up the personal details of customers in application form i.e.

• Name, Address, Contact No. Id Proof etc.
• Type of account will be open by customer i.e.
• Saving Account, OR Current A/c.
• RD A/C OR FD A/C.
• Loan A/C.
• PAN Card Number (If any)
• KYC i.e. Aadhar Card Number.
• Nominee of Account and Fill the details of Nominee.
• Signature of Accountholder and their Nominee
• After Fill the Application form Enter the details of Management system on
Different screens and Scan the Documents and open the account some
rupees.
• After provide the Bank Passbook of Customer.
• So, bank account is the most important work in employees and I gain
more knowledge about this work and accomplished by successfully.

WEEK 3rd: (17-24 JAN)

Work Assignment: Loan Providing Services.

Objective: To Know how to provide a different types loan by bank: Loan is

another importance function of the banking organization. In this week, I focus on
the loan, because I know about the loan procedures and I am interested to know

38
bank how to provide a loan. Because Loan is the source of income generation and
bank maintain the NPA Management Policy through the loan.

Learning of the Week: In this week, I achieve that THE KCC Bank What types
loans are provided the customers. The following loans are providing are follows:

Types of Loans Providing The KCC Bank Ltd.)

Maximum Credit Limit

• Kisan Credit Loan:
Crops Loan (Agricultural Activities) Allied Activities.
12 Months 10000 Not more than 25,000

• Vehicle Loan
Two – Wheeler and
Four – Wheeler
7 – 20 Years 5,00,000 (New Car) or 2 times of the Annual Income

• Consumer Loan
5- 7 Years 3,00,000 not less than 35 % of Gross Salary.

• House Loan
Construction and Repair.
Purchase of Land and Flat.
15- 20 Years 5,00,000 or 35 % of Gross
Salary (New House)

• SSI Loans (Small Scale Industries)

New Entrepreneurs Expansion Of Business.
5-10 Years 25,000 – 5,00,000

39
 • SCC (Swarojgar credit Card Scheme)
5 Years 25000

• Education Loan
5 Years 25,000 – 5,00,000

4th WEEK (24-1 FEB)

Work Assignment: Prepare the Cash Report and How to Cash Dealing
Objective: To Achieve the Knowledge About Cash Department: It is the
important part or
function of bank, because without cash has been no transaction of banking system.
It also involves the collection, handling, usage and cash flow liquidity. So, it is
very importance to know me about banking cash system.

Learning of the Week:

In this week, learning that how to entry of Receipts and Payment of cash register.
And also learn how to dealing with customer. Also, I interact with customer and
practically some work with Cashier in Bank. So, I Prepare Daily cash balance
report. This tool is especially useful when entering a situation where active cash
management is required for your daily cash flow.
5th WEEK (1-8 FEBRUARY)
Work Assignment:
How to transfer of money due to Che ques.
Learning Of the week:
In this week, learns that how to transfer the amount of one account holder to
another account holder. In these transactions are following accounts are Dr. & Cr.

6th WEEK (8-15 FEBRUARY)

Work Assignment: Distribution Activities

40
Objective: To Gain Knowledge about Account Statement, How To work in
Customer service Department.

Learning of the Week:

Distribution Function in mainly three types which are mention below:
• Account Statement
• Cheque Book Distribution
• ATM Distribution

7th Week (15-21FEBRUARY)

Work Assignment: Distribution Activity

Objective: To open a different Bank Account

Learning of the week: I have learned in Brief of bank account

8 Week (21-27 FEB)

Work Assignment: Account C-KYC
Objective: To gain knowledge about KYC

LEARNING OF WEEK:
Complete KYC reviews for at least 15 retail and 5 corporate clients.
Verify customer identity and beneficial ownership using approved sources (e.g.,
government ID, corporate registry, utility bills).

41
 CHAPTER 4

SPECIALIZATION 2: HUMAN RESOURCE

• This report is a comprehensive documentation of my internship experience in the

Human Resource department at KCC Bank, Rajiana, Kangra. As a Human
Resource specialization student, I was eager to apply theoretical knowledge in a
real-world setting and gain practical experience in Human Resource strategies
and techniques.
• During my internship, I worked on awareness programs aimed at educating
customers about fraud prevention and promoting government-backed schemes.
One of the key initiatives I was involved in was creating awareness about the
EMPLOYEE PROVIDNET FUND (EPF) and EMPLOYEE STATE
INSURANCE SCHEME (ESIS) scheme. These schemes are designed to provide
financial security and support to Employees.
• Through my work on awareness programs, I gained valuable insights into the
importance of financial literacy and the role of Human Resource in promoting
financial inclusion. I developed skills in designing and delivering presentations,
creating promotional materials, and engaging with customers. I also learned about
the various Human Resource channels used by the bank, including social media,
print media, and community outreach programs.
• My experience working on these schemes about fraud prevention taught me the
importance of educating employees about potential risks and threats. I developed
skills in payroll and compensation , HR documentation and compliance, and
employee engagement. I also gained insights into the various types of frauds and
scams that employee may encounter and the measures that can be taken to prevent
them.
• The Employee Provident Fund (EPF) is a retirement savings scheme for employees
in India. It is governed by the Employees’ Provident Fund and Miscellaneous Provisions
Act, 1952, and managed by the Employees’ Provident Fund Organisation (EPFO),
under the Ministry of Labour and Employment

42
• Similarly, The Employees’ State Insurance Scheme (ESIS) is a social security
scheme launched by the Government of India under the Employees’ State
Insurance Act, 1948. It provides medical, cash, maternity, disability, and
dependent benefits to employees working in factories and establishments with 10
or more workers (in some states 20). The scheme is managed by the Employees'
State Insurance Corporation (ESIC), which operates under the Ministry of Labour
and Employment..
• Through this internship, I gained valuable experience in Human Resource and
financial inclusion, developing skills in communication and coordination
discipline and grievance , time management and teamwork , and engaging with
employees. I also gained insights into the importance of financial literacy and the
role of Human Resource in promoting financial inclusion.
• This report documents my experiences, learnings, and observations during the
internship, highlighting challenges faced and skills acquired. It provides a
comprehensive overview of my internship, demonstrating the practical
application of Human Resource concepts in the banking industry.
• I am grateful for the opportunity to have interned at KCC Bank, Rajiana, Kangra,
and I am confident that the skills and knowledge gained will benefit me in my
future endeavours.

43
 4.1 EMPLOYEE PROVIDNET FUND (EPF)

4.2 Details of the Scheme Introduction

The EPF is one of the most secure and structured long-term saving instruments for employees in India.
It provides financial security post-retirement, emergency funds, insurance cover, and pension benefits,
making it an essential part of every salaried individual’s financial planning.

The The Employees' Provident Fund came into existence with the promulgation of
the Employees' Provident Funds Ordinance on the 15th November, 1951. It was replaced by
the Employees' Provident Funds Act, 1952. The Employees' Provident Funds Bill was
introduced in the Parliament as Bill Number 15 of the year 1952 as a Bill to provide for the
institution of provident funds for employees in factories and other establishments. The Act
is now referred as the Employees' Provident Funds & Miscellaneous Provisions Act,
1952 which extends to the whole of Indian except Jammu and Kashmir.
The Act and Schemes framed there under are administered by a tri-partite Board known as
the Central Board of Trustees, Employees' Provident Fund, consisting of representatives of
Government (Both Central and State), Employers, and Employees.
The Board administers a contributory provident fund, pension scheme and an insurance
scheme for the workforce engaged in the organized sector in India. It is one of the world’s
largest organizations in terms of clientele and the volume of financial transactions
undertaken by it. The Board is assisted by the Employees’ PF Organization (EPFO),
consisting of offices at 122 locations across the country. The EPFO is under the
administrative control of Ministry of Labour and Employment, Government of India.The
Organization also has a well equipped training set up where officers and employees of the
Organization as well as Representatives of the Employers and Employees attend sessions
for trainings and seminars.
The Board operates three schemes viz. :-
1. The Employees' Provident Funds Scheme 1952 (EPF)

2. The Employees' Pension Scheme 1995 (EPS

3. The Employees' Deposit Linked Insurance Scheme 1976 (EDLI)

44
 Benefit of EPF

1. Fixed Accumulation plus interest upon retirement, resignation , death. Partial withdrawals
allowed for specific expenses such as house construction, higher education, marriage, illness etc.
2. Partial withdrawals allowed for specific expenses such as house construction, higher education,
marriage, illness etc.

Eligibility for EPF

To be eligible for the Employees' Provident Fund (EPF) in India, an employee generally
needs to be earning a basic salary and dearness allowance up to ₹15,000 per
month. However, employees earning more than this limit can also choose to contribute to
EPF voluntarily. Additionally, the organization employing the individual must have at least
20 employees.

Key Eligibility Criteria:

• Salary Limit: The primary criterion is the monthly salary. Employees with a basic salary and
dearness allowance up to ₹15,000 are eligible to contribute to EPF.

• Voluntary Contribution: Employees earning above ₹15,000 can opt to contribute to EPF
voluntarily.

• Organization Size: The employer must have at least 20 employees.

• Age: While there isn't a specific upper age limit for joining EPF, employees are generally
expected to be between 18 and 54 years old.

• Employment Type: Both public and private sector employees can be members of EPF.

CLAIM FORMS
45
1. For Transfer of old account to the new one: Form 13
2. For Withdrawal in certain cases: Form 31
3. For financing LIC Policy: Form 14
4. For final settlement in favour of nominee/ beneficiary of a deceased member: Form 20

5. For final settlement by member: Form 19

The Employees’ Provident Fund or EPF is a popular savings scheme that has been
introduced by the EPFO under the supervision of the Government of India.
The employee and employer each contribute 12% of the employee's basic salary and dearness
allowance towards EPF. The current rate of interest on EPF deposits is 8.15% p.a.
The accrued interest on the EPF is tax-free and can be withdrawn without paying for the
same. Employees avail of a lump-sum amount on their retirement, which is inclusive of the
accrued interest.
Individuals can apply to avail of various online services of EPF India by accessing the official
portal. The EPF online portal is a user-friendly platform that ensures the flow of services is
transparent, efficient, and hassle-free

EPFO or Employees' Provident Fund Organisation is a non-constitutional body that promotes

employees to save funds for retirement.
EPFO was launched in 1951 and is governed by the Ministry of Labour and Employment. It
offers schemes that cover Indian and international workers
The interest amount accrued on the investments in a PF online account is tax-free.
Such interest is paid only on the operative PF accounts of employees who are yet to retire.
But the interest thus accrued on such accounts is taxed as per an EPF employee member’s tax
slab.
It should also be noted that the share contributed towards Employees Pension Scheme does
not accrue interest. However, members are entitled to receive a pension out of this
accumulated sum after they turn 58 years old.

46
 Objectives of EPFO
The EPFO’s primary goals are as follows-

• To ensure that each employee only has one EPF account.

• Compliance must be made as simple as possible.

• Ensure that organizations follow all of the EPFO’s rules and regulations regularly.

• To assure the dependability of internet services and to increase their facilities.

• All member accounts should be easily accessible online.

• Claim settlement times will be lowered from 20 to 3 days.

• Encouragement and promotion of voluntary compliance.

EPF Eligibility
Here are the eligibility requirements that must be met to join an EPF scheme-

• The Employee Provident Fund is open for employees of both the Public and Private Sectors, which means all
employees can apply to become a member of EPF India
• Any organization that employs at least 20 individuals is deemed liable to extend the benefits of EPF to its
employees
• .After becoming an active member of the EPF scheme, the employees are eligible to avail of several
Employees Provident Fund benefits, including insurance benefits and pension benefits.
How is Interest on EPF Calculated?
The interest extended on EPF schemes is calculated each month and is calculated by dividing the rate
p.a. by 12.
Such a method helps to calculate the specific interest that is offered to member employees for a given
month.
For example –
If the rate of interest is 8.5% p.a., the rate for each month would be (8.5/12) %, i.e. 0.7125%.
Now, 12% of an individual’s salary is directed towards their EPF account.
Assuming that the salary of an individual is Rs. 15,000 per month –
12% of Rs. 15,000 would accrue Rs. 18, 00 by month-end which would be transferred to the individual
EPF account.
Now, employers contribute 3.67% towards their EPF account, while 8.5% is contributed towards their
EPS account.

• The contribution towards the EPF account would be –3.67% of Rs. 15,000 = Rs.
550. 47
• The interest accrued in one month would be Rs. 2350 x 0.7125% = Rs. 16.75
It is to be noted that the interest accrued in a given month would only be credited to the account at the
end of a current financial year.
EPF Calculation
The EPF calculator is a simulation that tells you how much money will build in your EPF account when
retire. You can compute the lump-sum amount, which includes both your contribution and the employer’s
contribution, as well as the investment’s accrued interest.
It includes a formula box where you can enter your current age, basic monthly pay and dearness allowance,
EPF contribution, and retirement age up to 58 years.
If you know the figures, you can also enter the current EPF balance. The calculator will show you the EPF
funds available at retirement after you enter the necessary information.

EPF Withdrawal Rules

Individuals may opt for either partial or complete withdrawal of EPF. But such withdrawals can be made only
under specific circumstances.
Here is a list of a few such circumstances under which individuals can withdraw EPF completely –
• On retirement.
• If their unemployment period extends more than two months.
• While switching from one profession to another or in between jobs. But the duration without a job should be
more than two months.
Here is a list of a few such circumstances under which individuals can withdraw EPF partially–
• For a wedding.
• For higher education.
• For purchasing land or constructing a house.
• Repayment of home loan.
• Renovating a housing property

48
 4.3 EMPLOYEE STATE INSURANCE
The Employees' State Insurance (ESI) Scheme is a social security system in India designed to
provide financial and medical benefits to employees and their families, particularly in times of
sickness, maternity, disablement, or death due to employment injury. Administered by the
Employees' State Insurance Corporation (ESIC), the scheme aims to protect workers against
financial hardship arising from these contingencies. It covers various sectors, including factories
and establishments with a certain number of employees, and offers benefits like medical care,
sickness benefits, maternity benefits, and more.

ESIS ACT
The promulgation of Employees' State Insurance Act, 1948(ESI Act), by the Parliament was the first major
legislation on social Security for workers in independent India. It was a time when the industry was still in a nascent
stage and the country was heavily dependent on an assortment of imported goods from the developed or fast
developing countries. The deployment of manpower in manufacturing processes was limited to a few select
industries such as jute, textile, chemicals etc. The legislation on creation and development of a full proof multi-
dimensional Social Security system, when the country's economy was in a very fledgling state was
obviously a remarkable gesture towards the socio economic amelioration of a workface though limited in
number and geographic distribution. India, notwithstanding, thus,
took the lead in providing organized social protection to the working class through statutory provisions.
The ESI Act 1948, encompasses certain health related eventualities that the workers are generally exposed
to; such as sickness, maternity, temporary or permanent disablement, Occupational disease or death due to
employment injury, resulting in loss of wages or earning capacity-total or partial. Social security provision
made in the Act to counterbalance or negate the resulting physical or financial distress in such
contingencies, are thus , aimed at upholding human dignity in times of crises through protection from
deprivation, destitution and
social degradation while enabling the society the retention and continuity of a socially useful and
productive manpower

• Benefits:
The scheme offers a variety of benefits, including:

• Medical Benefits: Comprehensive medical care for insured persons and their families,
including outpatient and inpatient care, specialist consultations, and hospitalization.
• Sickness Benefits: Payment of a portion of wages during periods of sickness.
• Maternity Benefits: Financial support for women during maternity leave.
• Disablement Benefits: Payments for temporary or permanent disablement due to
employment injuries.
• Dependents' Benefits: Support for the families of insured persons who die due to
employment injuries.

49
• Eligibility:
Employees earning up to a certain wage limit (currently Rs. 21,000 per month, with Rs. 25,000
for those with disabilities) are generally covered.

• History:

The ESI Scheme was established in 1948 with the passage of the Employees' State Insurance Act
and was first implemented in Kanpur and Delhi in 1952. The scheme has expanded significantly
since then, now covering 668 districts across 36 states and union territories

When is ESIS registration required?

Under the Employee State Insurance Act 1948, employers must register with the Employees’
State Insurance Corporation (ESIC) once they meet specific criteria related to workforce
size and employee wages.

Number of Employees
ESIS registration is mandatory for establishments that employ:
10 or more employees in most Indian states and union territories
This applies to factories, shops, hotels, cinemas, road transport services, and private

medical and educational institutions.

Employee Wage Limit
ESIS coverage applies to employees earning up to ₹21,000 per month. However, for employees
with disabilities, the wage limit is ₹25,000 per month.

Procedure for ESIS registration

Employers can complete Employee State Insurance Scheme (ESIS) registration online through the
ESIC portal. The process involves the following steps:
1. Visit the ESIC portal.
2. Click on ‘Employer Login’, then select ‘Sign Up’.
3. Enter your company details, including:
a. Company Name
b. State and Region
c. Email Address (used as the username)
d. Phone Number
4. Submit the form: Once you submit it, a confirmation email with login credentials will be sent to your
5. registered email, allowing you to proceed with employee registration

50
Recent Improvements in ESIC Hospitals
ESIC hospitals have introduced various enhancements to improve healthcare quality, including:
• Electronic Health Records (EHR) for better patient data management.
• VIBGYOR - Operation Indradhanush focuses on medical advancements.
• 24/7 Medical Helpline for insured employees.
• Special OPD services for improved patient care.
• Pathology and X-ray services through the Public-Private Partnership (PPP) model.
• Quality control for medicines and drugs.
• Regular inspections by ESIC members to ensure service quality.
• Queue management systems and behavioural training for medical staff.
• Specialised care units, including ICU, CT Scan, MRI, Dialysis, and Cath Labs.
• Mother & Child Care hospitals with dedicated services.
Employees and their dependents can avail of medical benefits at any registered ESIC or ESIS
hospital by presenting their ESI Pehchan Card and a valid ID.

When to claim & How to check claim status?

ESI benefits can be claimed after a qualifying event such as:
• Illness – After getting a certified medical report from an ESIC-authorized doctor
• Injury/Disability – After an accident or workplace injury, based on medical certification
• Maternity – Before or after childbirth, depending on the type of claim
• Unemployment – After losing a job due to establishment closure or retrenchment
• Death – Dependents can claim benefits upon the insured person's demise
In addition, the scheme also provides some other need based benefits to insured workers.
1. Vocational Rehabilitation :To permanently disabled Insured Person for undergoing VR Training at VRS.
2. Physical Rehabilitation : In case of physical disablement due to employment injury.
Rajiv Gandhi Shramik Kalyan Yojana : This scheme of Unemployment allowance was
introduced w.e.f. 01-04-2005. An Insured Person who become unemployed after being insured
two or more years, due to closure of factory/ establishment, retrenchment or permanent
invalidity not less than 40% arising out of
non-employment injury are entitled to :-

• Unemployment Allowance equal to 50% of wage for a maximum period of upto Two Years during the life
time.
• Medical care for self and family from ESI Hospitals/Dispensaries during the period IP receives
unemployment allowance.
• Vocational Training provided for upgrading skills - Expenditure on fee/travelling allowance borne by

51
ESIC.
Atal Beemit Vyakti Kalyan Yojana (ABVKY) :
This scheme is a welfare measure for employees covered under Section 2(9) of ESI Act, 1948, in
form of relief payment upto 90 days, once in a lifetime. The Scheme was introduced w.e.f. 01-07-
2018 on pilot basis for a period of two years initially. It has also been decided to enhance the rate of
unemployment relief under the scheme to 50% of wages from earlier rate of 25% along with
relaxation in eligibility conditions, provided
the Insured Person should have been in insurable employment for a minimum period of one year
immediately before her/his unemployment and should have contributed for not less than 78 days in
the completed contribution period in 12 months immediately prior to unemployment. In a
significant relaxation, relief shall become due for payment after 30 days from date of unemployment
and claim can be submitted directly to
the designated ESIC Branch Office / DCBO by the worker. Claims to get the relief can be
made online at website www.esic.gov.in along with submission of the physical claim with
an affidavit, photocopy of
Aadhaar Card and Bank Account details to the designated ESIC Branch Office / DCBO by post or in
person

52
 CHAPTER 5
Executive Summary

Introduction

This internship report presents a comprehensive summary of a 8 Weeks training program undertaken at Kangra Central
Co-operative Bank Ltd (KCCB), Rajiana 53 Mile branch, Kangra, Himachal Pradesh. The training was part of the MBA
curriculum at Himachal Pradesh University and aimed at providing practical exposure to general banking operations and
credit management practices. During the internship, the author worked across various banking departments including
customer service, credit, cash handling, and recovery. The internship was specifically designed to bridge academic
learning with real-world application in banking and finance, supported by active participation in daily operations,
marketing initiatives, and direct client interactions.
The experience provided valuable insights into the operational frameworks of rural and semi- urban banking
institutions. Special focus was given to understanding government-backed schemes such as credit risk
assessments, customer relationship management, and banking compliance procedures. This executive summary
elaborates on key learnings, departmental processes, customer service methodologies, and the marketing and
credit landscape of a co-operative bank, offering a deep dive into how such institutions function on the ground
level.

Organizational Overview KCCB,

established in 1920, is a significant player in the rural banking sector of Himachal Pradesh. It operates under a
co-operative structure with a primary mission to uplift the 57 economic conditions of its members.
Headquartered in Dharamshala, the bank has earned Grade A audit classification for its exemplary
performance. KCCB provides a comprehensive range of services including savings, current, fixed deposits,
personal and business loans, and government-sponsored schemes. The bank's vision is to emerge as the most
trusted and admired co-operative institution in the region. It maintains a strong rural presence and has 1331
branches serving rural areas. The Rajiana branch where the internship was completed is a fully computerized
and CBS-enabled branch, offering RTGS, NEFT, mobile, and internet banking services. Internship Objectives
The main objectives of the internship were:
• To understand the operational dynamics of general banking and credit management.
• To explore finance and marketing specialization areas through practical assignments.
• To analyze the impact of government financial inclusion programs.
• To identify challenges in customer service and propose feasible improvements.
. Learning outcomes included:
53

53
• Handling queries and complaints efficiently.
• Enhancing interpersonal and communication skills.
• Understanding customer segmentation and needs.
• Gaining knowledge of account lifecycle and documentation. Credit Department The credit department is
crucial for revenue generation and managing asset quality. Intern responsibilities included:
Evaluating loan applications.

• Understanding creditworthiness assessments

. • Learning about various loan products including Kisan Credit Card, vehicle, housing, education, and small
business loans
. • Observing the credit appraisal process and compliance requirements. The author studied the principles of
secured lending, end-use verification, risk grading, and the importance of maintaining net NPA within
regulatory thresholds. Exposure to credit documentation helped understand how loans are processed,
monitored, and recovered. Cash Department The cash department provided training in cash receipt and payment
protocols.

Daily tasks included:

• Assisting in cash counting, register maintenance, and vault management.

• Ensuring compliance with RBI guidelines on currency management.
• Preparing daily cash reports and cash position memos.
• Gaining familiarity with security protocols for cash transit and evening banking. Recovery Department
Working in the recovery department included field visits and debt follow-ups.
The internship involved:
• Identifying defaulting customers
• Understanding recovery mechanisms and legal frameworks.
• Participating in client negotiations for EMI payments.
• Learning penalty calculations and the significance of timely collections.

Challenges Faced
• Limited time to explore all departments deeply.
• Restrictions in handling confidential client data
. • Occasional unavailability of digital resources in rural settings.
• Managing customer expectations and language barriers in remote areas. Key Learning
54
54
• Credit Assessment: Risk mitigation through collateral, credit scoring, and income analysis.
• Cash Management: Adherence to RBI protocols and real-time cash handling technique
. • Data Management: Value of proper documentation, MIS, and regulatory compliance.
• Interpersonal Growth: Improved communication, leadership, and organizational skills.

Recommendation
s • Simplify loan documentation and educate borrowers about the process
. • Enhance digital platforms including mobile apps, chatbots, and CRM tool
s. • Expand financial literacy initiatives in vernacular languages
. • Improve grievance redressal systems with faster turnaround times.
Collaborate with fintech for credit scoring and rural outreach.

55
REFERENCES

(KANGRA CENTRAL CO-OPERATIVE BANK, n.d.)

(KCCB, 2024)
(HISTORY OF KCCB, 1920)
(KCCB PRODUCT, n.d.)
(LOANS KCCB, n.d.)
(SERVICE CHARGES, n.d.)
References
HISTORY OF KCCB. (1920, MARCH 17). Retrieved from https://kccb.in/about-us/history-of-kccb/:
https://kccb.in/about-us/history-of-kccb/
KANGRA CENTRAL CO-OPERATIVE BANK. (n.d.). Retrieved from https://kccb.in/: https://kccb.in/
KCCB. (2024). Retrieved from https://kccb.in/statistics/balance-sheet-2023-24/: https://kccb.in/statistics/balance-sheet-
2023-24/
KCCB PRODUCT. (n.d.). Retrieved from https://kccb.in/products/deposits/: https://kccb.in/products/deposits/
LOANS KCCB. (n.d.). Retrieved from https://kccb.in/products/loans/: https://kccb.in/products/loans/
ORGANIZATION OVERVIEW. (2025). Retrieved from https://kccb.in/organisation-structure/managing-director/:
https://kccb.in/organisation-structure/managing-director/
SERVICE CHARGES. (n.d.). Retrieved from https://kccb.in/products/service-products/service-charges/:
https://kccb.in/products/service-products/service-charges/

(ORGANIZATION OVERVIEW, 2025)

56
 CHAPTER 6

CONCLUSION

The 8 weeks internship at kangra Central Co-operative Bank, Rajiana Branch was a highly enriching
and insightful experience. It allowed me to bridge the gap between theoretical knowledge and
practical banking operation. during my tenure I worked in various departments ,Credit ,Cash and
Recovery,which provided me with a holistic understanding of how a Co-operative bank function on
a daily basis
Through the active participation in account opening procedures,Cash Handling,Credit assessment,
Loan Processing and Recovery Operation, i developed essential professional skills like
communication, problem solving, teamwork,customer dealing.
This internship helped me realize the importance of discipline,accuracy,compliance and customer
satisfaction in the banking sector. The hands on experience has not only improved my technical
skills but also increased my confidence to work in a corporate setup.Overall this training has been
valuable milestone in shaping my professional career and has reinforced my interest in pursuing
opportunities in banking and finance industry

53
 APPENDICES

BALANCE SHEET
(2023-24)

Table No. A

54
Corporate Tie-Up

Life Insurance Companies

• Life Insurance Company of India Ltd.

• Exide Life Insurance Company Ltd.
• Reliance Nippon Life Insurance Company Ltd.

General Insurance Companies

• National Insurance Company Ltd.

• Bajaj Allianz General Insurance Company Ltd.

Health Insurance Companies

• Care Health Insurance Company Ltd.

Honda

We are pleased to inform you that Bank has entered into an MOU with

Honda Motors for financing Motor Cycles

Tata Motors

We are pleased to inform you that Bank has entered into an MOU with

Tata Motors for financing Tata

Vehicles

AXIS, HDFC and ICICI Bank

The Bank has also corporate tie-up with AXIS, HDFC and ICICI Bank for remittance
and collection purposes

55
 Service Charges
Revised service charges w.e.f. 26.09.2023 are inclusive of GST : (Service charges
will not be applicable to Staff/ retired staff of KCCB and Govt.
accounts/ Semi government/ Board/ Corporations etc.)
Updated on 31.10.2022 Table No. B

Sr. Charges for the

Service
No. Customers

i Upto ₹10,000/- ₹55/-

ii ₹10,001/- to ₹1,00,000/- ₹110/-

iii Above ₹1,00,000/- ₹165/-

iv Collection of Local Cheques Free

Collection of Cheques for the repayment of Term Loan

v Free
installment

Sr.
Service Charges for the Customers
No.

i Upto ₹10,000/- ₹118/-

Above ₹10/- per ₹1,000/- or part thereof, Minimum ₹125/- & Maximum
ii
₹10,000/- ₹30,000/-

56
Outstation Cheque Collection

Note: The above charges will be all inclusive. No additional charges such as Courier Charges, out of
pocket Expenses should be collected from the customer. The outstation cheque collected through another
bank – Commission on 50:50 basis, i.e, remitting bank to charge 50% & Collecting bank to charge 50% of
the applicable rate. The collection of instruments of Govt, Welfare Services, Charitable and
Religious Institutions, Defence Personnel in active services and Societies for PDS purpose are allowed at
par, provided they have account with us. While making payments of DD(s) the BM are required to
ensure due diligence w.r.t. Security features / aspects.

Collection of Bills

Note: Actual Postage/Out of pocket Expenses will be charged extra.

Returning Charges/Handling Charges for Cheques / Bills return

unpaid

Sr. No. Service Charges for the Customers

i Local Cheques / Bills ₹175/- per cheque for SB accounts.

ii Local Cheques / Bills ₹260/- per cheque for other than SB accounts.

iii Outstation Cheques / Bills ₹300/- for all the accounts.

Note: The above charges are to be realized under intimation to the

party on a/c of insufficient fund. Postage to be realized extra.

Charges for the

Sr. No. Service
Customers

i Saving Bank A/c with Cheque Book ₹150/-

ii Saving Bank A/c without Cheque Book ₹100/-

iii Current Accounts ₹250/-

iv RD Accounts ₹100/-

57
Closure of Accounts (within 1 year of its opening)

Sr. No. Service Charges for the Customers

i SB A/c With Cheque Book ₹2000/-

ii SB A/c Without Cheque Book ₹500/-

iii With Cheque Book for Senior citizen ₹100/-

Note: The Service Charges are to be levied if the A/C is closed within one
year of opening, except the following cases :
• Where Account is transferred to another branch of the Bank,
• Opening of another A/C in joint names &
• Death of the A/C Holder.
• Closure charges will not be applicable to BSBDA/ PMJDY/ No Frill/ Small accounts
opened under Financial Inclusion.
Penalty Charges on RD Accounts

Note: If the customer credits the equivalent installments in advance,

penal charges will not be applicable for delayed installments in RD.
Minimum Balance Criteria for Saving Bank Account

Minimum Balance Criteria for Current Account

Penal Charges where Minimum Balance as mentioned at Sr No 6 & 7 is

not maintained

58
Sr. Charges for the
Service
No. Customers

Penalty Charges for depositing delayed

installments in ₹ 2/- (per ₹ 100/- per
i
month)
RD

• Minimum Balance Criteria for Saving Bank Account

• Minimum Balance Criteria for Current Account

• Penal Charges where Minimum Balance as mentioned at Sr No 6 &

7 is not maintained

Sr.
Service Charges for the Customers
No.

40 Cheque leaves free per year, thereafter ₹2/-

i Saving Bank A/c
for additional leaf.

60 Cheque leaves free per year, thereafter ₹3/-

ii Current A/c
for additional leaf.

Issuance of KCC
iii Nil
Cheque Book

59
Sr. No. Service Charges for the Customers

iv SB No Frill A/c Nil

v SB Govt A/c Nil

Sr. No. Service Charges for the Customers

i Individual ₹5,000/-

ii Others ₹5,000/-

Sr. Charges for the

Service
No. Customers

₹3/-per thousand or part

thereo
i For All DDs/Cash orders irrespective of amount
Min ₹30/- & Max
₹12,500/-

For students DD up to Rs. 1000/- (Charges to be

ii ₹20/-
adjusted manually)

For students – admission fees , examination fees

from
iii ₹30/-
₹1,001/- upto ₹5,000/-(Charges to be adjusted
manually)

₹3/- per thousand or part

thereo
iv For students DD Above ₹5,000/-
Min ₹30/- & Max
₹12,500/-

60
Note: In case the balance is less than the amount of charges to be levied,
entire available amount in the account would be deducted and balance amount
would be deducted as and when amount is deposited in the account. However,
it may be ensured that outstanding balance in the account does not become
negative.
Minimum Balance Charges will not apply to Society, Staff A/C & Govt.
Accounts, BSBDA, No Frill, PMJDY accounts.

Cheque Book Charges for SB/Current Accounts

Note: There shall be no charges for issuing of cheque books against Govt.
Accounts/ Boards & Corporation/ Federations/ Societies.

Charges for issuing Demand Draft on HDFC, Axis Bank, ICICI Bank

Charges for
Sr.
Service the
No.
Customers

Allowing operation through Power of

Attorney/Mandate/Change
i ₹118/-
of Authorized Signatories, Change of Name, Operating
Instruction etc

ii From own Account to own Account Nil

iii From own Account to other Account ₹60/-

61
Branches of the Bank, Apex Bank, JCCB and Cash Order

Note: The Issuance of drafts of Educational Loan, Welfare services, Govt,

PM/CM Relief Fund, Charitable and Religious Institution, Defence
Personnel in active services, Societies for PDS Purpose are allowed at par
provided they have account with us. While issuing DD(s) BM is required to
ensure due diligence w.r.t. Security features/ aspects.
• Issuance of Duplicate Demand Draft/Cash
Order/Revalidation/Cancellation.
• Service Charges on Deposits/Standing Instructions
• Failed Standing Instruction Charges
Note: Charges will be auto deducted through CBS
• Loss of Cheque Book SB/ CA

Sr.
Service Charges for the Customers
No.

10% of the DD amount( Rounded upto nearest

For DDs/Cash Orders Rupees) an
i
upto ₹50,000
Maximum ₹200/- only

10% of the DD amount( Rounded upto nearest

For DDs/Cash Orders Rupees) an
ii
above ₹50,000
Maximum ₹1,000/- only

62
 Sr. Charges for the
Service
No. Customers

₹118/- per instruction or

iv Stop Payment Charges
maximum ₹500/-

Sr.
Charges for the
Service Customers
No.

i SHG/ NRLM SHG Nil

ii KCC Upto₹ 3.00 lac Nil

0.60% of the sanctioned

iii KCC above ₹ 3.00 lac amount subject t maximum
₹50,000/

0.60% of the sanctioned

Processing Charges for Term Loan upto amount subject t minimum
iv
₹1.00 Crore other than HBA of ₹500/- and maximum
₹50,000/-

v Loan against NSC/KVP/LIC ₹120/-

0.50% subject to minimum

Processing Charges for Term loan above ₹
i ₹50,000/- maximum
One Crore upto 7.5 Crore other than Govt.
₹3,00,000/-

Processing Charges for Term Loan above 0.30% subject to minimum

ii
₹7.5 Crore other than Govt. ₹3,00,000/-

63
 Sr. No. Service Charges for the Customers

Loss of Cheque Book SB/ ₹50/- per cheque leaf for SB & CA.
i
CA Maximum ₹ 500/

Charges for
Sr.
Service the
No.
Customers

On all type of transactions from own account to own

i account/ from own account to other’s account with KCCB or ₹100/-
any other Bank

Sr. No. Service Charges for the Customers

i Ordinary post ₹15/-

ii Courrier / Regd post ₹50/-

64
Postal Charges

Sr. No. Service Charges for the Customers

i Small ₹800/-per annum or part thereof

ii Medium ₹1,200/-per annum or part thereof

iii Large ₹2,500/-per annum or part thereof

iv Extra Large ₹4,500/-per annum or part thereof

Note: These Postal Charges vide Sr. No. 22 will be levied where Bank actually
incur the expenditure and are to be charged manually.
65
Safe Deposit Lockers Charges
Note: For existing employees/ retired member of the staff, 50% of locker
charges are applicable. Branches should ensure that rent is recovered in
advance for each F.Y. If the locker is hired in the middle of the year, the
locker charges shall be obtained in advance proportionately for remaining
months (including charges for the full month in which the locker is hired)
till the end of current financial year.

Sr. No. Service Charges for the Customers

i Small ₹50/- per month or part thereof

ii Medium ₹75/- per month or part thereof

iii Large ₹100/- per month & part thereof

iv Extra Large ₹120/- per month & part thereof

Sr.
Service Charges for the Customers
No.

One time Registration

a Large : ₹ 1,200/-Small/ Medium : ₹ 600/-
Charges of Lockers

Break open of Locker/ ₹ 1,000/- plus actual charges of break open and
b
Loss of Keys preparing of keys (paid to manufacturers).

Sr. No. Service Charges for the Customers

i ₹2 Lac to ₹5 Lac ₹28/- per transaction.

66
Sr.
Service Charges for the Customers
No.

Cash Deposit Transactions: upto ₹20,000/-: Free for ₹20,001/- to

b Current ₹49,000/- (maximum) per day per account:
Accounts (for non home branch) @ ₹50/-

Note: Charges will be auto deducted through CBS

Above ₹ Five lacs @ .005% subject to

minimum ₹50/- per day per account.

Clearing Charges (Anywhere

33 Free of Cost
Banking Facility)

Note: Before allowing this facility at Sr. No. 31 the BMs are required to ensure
complianc to KYC norms and security aspects strictly.

Pass book updation at non

34 No charges
home branch

Credit Transaction – cash/ transfer- in RD,

Transfe of TDR Interest, Term Loan/ CC
35 Transaction Charges
Limit form other than home branch is free of
cost irrespective of amount.

Interest Certificate (To be First Copy Free. Extra Copy ₹50/- per
36
charged manually by the BM) certificate.

With latest balance ₹60/- ₹1/- per entry for

37 Duplicate Pass Book/ Statement
previou entries.

67
 Issuance of Statement of
First copy Free. Thereafter for additional
38 Account for all type of
copy @ ₹1/- per entry- Min ₹60/-.
accounts.

Issuance of No Due Certificate. ₹50/- per certificate (Except KCC, SHG &
39 (To be charged manually by the Govt

BM) Sponsored Schemes)

Sr. Charges for the

Service
No. Customers

ii Charges for issue of Duplicate Rupay Card ₹150/-

iii Re-pin of Rupay Card ₹50/-

₹50/-(for every
iv In case of misprint of Pin Mailer successive
Re-pin request)

ATM Card/PIN/Kit returned by post due to wrong

v ₹100/-
address

68
 Charges for Rupay ATM cum Debit Card/Rupay KCC Card(in case of
issuance of ATM)

Sr. Charges for the

Service
No. Customers

Charges for issue of Fresh/First Rupay

i Nil
Card(including replacement of Maestro Card)

Charges for
Sr.
Service the
No.
Customers

SMS Alert Charges for SB/ CA/ KCC Accounts with ATM ₹15/- per
i
facilities quarter

SMS Alert Charges for Other Accounts without ATM

₹15/- per
ii facilities (where the customer has opted for SMS Alert in
quarter
the account)

Sr. No. Service Charges for the Customers

i Login Password ₹25/- (inclusive of Registered Postage Charges)

ii Transaction Password ₹25/- (inclusive of Registered Postage Charges)

69
Sr. Charges for the
Service
No. Customers

i Transactions charges for every subsequent transaction thereafter ₹20/-

Note: Calendar year means the completion of one year from the date of
activation of Rupay Card. Date of activation is date of linking the card online.
43. SMS Alert Charges
44. Transactions Charges for Rupay ATM cum Debit Card/Rupay KCC
Card (In case of KCCB ATM card used at other Banks ATM
Machine)
Note: Before allowing this facility at Sr. No. 31 the BMs are required to ensure
compliance to KYC norms and security aspects strictly.
45. Transactions Charges for Rupay ATM cum Debit Card/Rupay KCC
Card (In case of KCCB ATM card used at KCCB ATM Machine)

Sr. No. Service Charges for the Customers

i Rupay ATM cum Debit Card ₹100/-

Sr. No. Product Name At branch level

i SB Ch. NM Pub Ind ₹6/-

ii SB Ch. NM Sr CTZN ₹6/-

iii SB Non Ch SRC ₹6/-

iv SB Non Ch NM ₹6/-

v CA NM Pub Ind ₹6/-

vi Sec Loan to Ind ₹6/-

vii CC Hypo to Ind ₹6/-

70
 Sr. Charges for the
Service
No. Customers

(Financial Transactions)

Transactions charges for every subsequent transaction thereafter

ii ₹5/-
(Non Financial Transactions)

Sr. No. Service Charges for the Customers

i Free Financial transactions 5

ii Free Non Financial transactions unlimited

iii Rupay ATM cum Debit Card charges for Successive transactions ₹6/-

iv Rupay KCC Nil

Sr.
Service Charges for the Customers
No.

47. Commitment Charges

46. IMPS Transaction Charges

Note: IMPS Service transaction charges through Internet Banking Mobile
Banking are nil
Service Charges on Advances

71
Sr.
Service Charges for the Customers
No.

1. if utilization is up to 75% – Nil.

The commitment charges over the
unutilized amount of credit / over draft
facility provided to customer wiil be 2. if utilization is 50% to 75% –
i 0.25% GST on unutilized portion.
charged because the bank has committed to
said customer, that they will lend him/her
the sanctioned amount. 3. if utilization is less than 50% –
0.50 + GST on unutilized portion.

Note: Charges will be auto deducted through CBS

48. Service Charges other than sanction of Credit Limit

1. Restructuring/ Reschedulement
of Loan – 50% of the applicable
processin charges in that product.

2. Substitution of Collateral
Security (change of security) –
0.05% of sanctioned loan amount.
Min. ₹500/- Max. ₹ 5,000/-.
i Cash Credit / Letter of Credit 3. Release of Collateral Security
(during the currency of loan) –
0.05% of sanctioned loan amount.
Min. ₹ 500/- Max. ₹ 5,000/-.

4. Change in Terms and Conditions

– 0.05% of sanctioned loan amount.
Min.
₹ 500/- Max. ₹ 5,000/-.

Note: Charges will be manually deducted by the Branch and not to levy release of
collateral security charges on the closure of loan account.

72
 49. Project Appraisal fees

Where the project will got appraise

by outer agencies the entire
Will be applicable in case the project will
i amount/ appraisal fees will be
got appraise by outer agencies
borne by the borrower (in addition
to the normal processing charges).

Note: Charges will be manually deducted by the Branch

Sr.
Service Charges for the Customers
No.

50. Processing Charges on late renewal of CC Limits

Late renewal of CC limits above 1 month to 3 0.10% of sanctioned limit. Min ₹

i
months 250/Max. ₹ 5,000/-.

0.15% of sanctioned limit. Min ₹

ii Late renewal of CC limits above 3 months
500/Max. ₹ 10,000/-.

Note: Charges will be manually deducted by the Branch in addition to processing charges for
renewal of CC Limit and KCC Limit above ₹ 3.00 lacs.

73
 Sr. No. Service Charges for the Customers

ii Above ₹5 Lac ₹57/- per transaction.

Sr.
Service Charges for the Customers
No.

1% of the Guarantee amount should be collected

Bank Guarantee fo the entire Bank Guarantee period including
28
Charges(Manually) claim period in advance at the time of issuing ban
Guarantee.

29 Security for Bank Guarantee 25% Liquid Security and rest 75% Collateral

30 Cash Deposit Transaction: Saving Bank(Excluding Financial Inclusion Account)

i Cash Deposit at Home Branch 5 transactions are Free

Beyond 5 transactions in a
ii month(Excluding Alternate ₹50/- per transaction
Channel Transaction)

Deposit of cash at Non Home Free upto ₹20,000/- and for ₹20,001/- to ₹49,000/
iii
Branch to Account (maximum) per day per account @₹50/-

Note: Charges will be auto deducted through CBS

Up to ₹ 2.00 lac: Free (Per day)

Cash Deposit Transactions: Current
a Above ₹ 2.00 lac: ₹ 1/- per thousand, subject to
Accounts (for home branch)
mi ₹ 50/-, max ₹ 15000/-

22. Service Charges for NEFT

74
 31Cash Deposit Transaction Charges : Current
Accounts32Transfer of fund from one branch to another
branchFrom home branch to non home branch free upto ₹2,00,000/-
and above ₹Two lacs to ₹ Five lac ₹50/- per day per account.

Charges for the

Sr. No. Service
Customers

i Upto ₹10,000/- ₹ 2.50/- per transaction.

ii Above ₹10,001/- to upto ₹1,00,000/- ₹ 5.00/- per transaction.

iii Above ₹1,00,000/- to upto ₹2,00,000/ ₹ 15.00/- per transaction.

iv Above ₹2,00,000/- ₹ 25.00/- per transaction.

75
Sr.
Service Charges for the Customers
Issuance of Statement of
No. 38
Account for all type of
accounts.

Cash Deposit Transactions: Current upto ₹20,000/-: Free for ₹20,001/-

76 to ₹49,000/-
b
Accounts (for non home branch) (maximum) per day per account: @ ₹50/-
Charges for issue of Fresh/First
i
Note: Charges will be auto deducted through CBS
Rupay Card(including replacement of
Maestro Card)
Above ₹ Five lacs @ .005% subject to minimum
₹50/- per day per account.

Clearing Charges (Anywhere

33 Free of Cost
Banking Facility)

Note: Before allowing this facility at Sr. No. 31 the BMs are required to ensure complian
to KYC norms and security aspects strictly.

Pass book updation at non home

34 No charges
branch

Credit Transaction – cash/ transfer- in RD, Transfe

of TDR Interest, Term Loan/ CC Limit form other
35 Transaction Charges
than home branch is free of cost irrespective of
amount.

Interest Certificate (To be charged

36 First Copy Free. Extra Copy ₹50/- per certificate.
manually by the BM)

With latest balance ₹60/- ₹1/- per entry for previou

37 Duplicate Pass Book/ Statement
entries.

77
6
 Nil

Sr.
Service Charges for the Customer
No.

ii Charges for issue of Duplicate Rupay Card ₹150/-

iii Re-pin of Rupay Card ₹50/-

₹50/-(for every successive

iv In case of misprint of Pin Mailer
Re-pin request)

v ATM Card/PIN/Kit returned by post due to wrong address ₹100/-

Sr. No. Service Charges for the Customers

i Login Password ₹25/- (inclusive of Registered Postage Charges)

ii Transaction Password ₹25/- (inclusive of Registered Postage Charges)

40. Charges for Rupay ATM cum Debit Card/Rupay KCC

Sr. Charges for the

Service
No. Customers

i SMS Alert Charges for SB/ CA/ KCC Accounts with ATM facilities ₹15/- per quarter

SMS Alert Charges for Other Accounts without ATM facilities

ii ₹15/- per quarter
(where the customer has opted for SMS Alert in the account)

Card(in case of issuance of ATM)

41. Charges for Internet Banking
42. Annual Charges for Rupay ATM cum Debit Car

77
6
Note: Calendar year means the completion of one year from the date of activation of Rupay Card. Date of
activation is date of linking the card online. 43. SMS Alert Charges
47. Transactions Charges for Rupay ATM cum Debit Card/Rupay
KCC Card (In case of KCCB ATM card used at other Banks
ATM Machine)
Note: Before allowing this facility at Sr. No. 31 the BMs are required to ensure
compliance to KYC norms and security aspects strictly.
48. Transactions Charges for Rupay ATM cum Debit Card/Rupay
KCC
Card (In case of KCCB ATM card used at KCCB ATM Machine)

Sr. No. Service Charges for the Customers

i Rupay ATM cum Debit Card ₹100/-

Sr. No. Product Name At branch level

i SB Ch. NM Pub Ind ₹6/-

ii SB Ch. NM Sr CTZN ₹6/-

iii SB Non Ch SRC ₹6/-

iv SB Non Ch NM ₹6/-

v CA NM Pub Ind ₹6/-

vi Sec Loan to Ind ₹6/-

vii CC Hypo to Ind ₹6/-

78
Sr. Charges for the
Service
No. Customers

(Financial Transactions)

Transactions charges for every subsequent transaction thereafter

ii ₹5/-
(Non Financial Transactions)

Sr. No. Service Charges for the Customers

i Free Financial transactions 5

ii Free Non Financial transactions unlimited

iii Rupay ATM cum Debit Card charges for Successive transactions ₹6/-

iv Rupay KCC Nil

79
86