Chapter I INTRODUCTION TO BANKING

Introduction

Abankis afinancial intermediarythat acceptsdepositsand channels those deposits intolendingactivities, either directly by loaning or indirectly through capital markets. A bank links together customers that have capital deficits and customers with capital surpluses.

Due to their importance in thefinancial systemand influence on national economies, banks arehighly regulatedin most countries. Most nations have institutionalized a system known asfractional reserve banking, under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject tominimum capital requirementsbased on an international set of capital standards, known as theBasel Accords.

Banking in its modern sense evolved in the 14th century in the rich cities ofRenaissance Italybut in many ways was a continuation of ideas and concepts ofcreditandlending that had its roots in theancient world. In thehistory of banking, a number ofbanking dynastiesnotably theMedicis, theFuggers, theWelsers, theBerenbergs, and the Rothschildshave played a central role over many centuries. Theoldest existingretail bankisMonte dei Paschi di Siena, while the oldest existingmerchant bankisBerenberg Bank.

BANKING IN INDIA-Originated in the last decades of the 18th century. The oldest bank inexistence in India is the State Bank of India, a government-owned bank that traces its origins back to June 1806and that is the largest commercial bankin the country. Centralbanking is the responsibility of the Reserve Bank of India, which in 1935 formally tookover these responsibilities from the then Imperial Bank of India,relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bankwas nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980.Currently, India has 88 scheduled commercialbanks (SCBs) - 27 public sector banks(that is with the Government of India holding a stake), 31 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percentof total assets of the banking industry, with the privateand foreignbanks holding 18.2% and 6.5% respectively.

Early History-Banking in India originated inthe last decades of the 18thcentury. The first banks were The General Bank of India which started in 1786, and the Bank of Hindustan, both ofwhich are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bankof Calcutta in June 1806,which almost immediatelybecame the Bank of Bengal. This was one of thethree presidency banks, the other twobeing the Bank of Bombayand the Bank of Madras, all three of which wereestablished under charters from the British East India Company. For many years thePresidencybanks acted as quasi-central banks, as did their successors. The three banks merged in1925 to form the Imperial Bank of India, which, upon India's independence, became the

State Bank of India. Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in1865 and still functioning today, is theoldest Joint Stock bank in India. It was notthe first though. That honor belongs to the Bank of Upper India, which was established in1863, and whichsurvived until 1913, when it failed, with someof its assets and liabilitiesbeing transferred to the Alliance Bank of Simla. When the American Civil Warstopped the supply of cotton toLancashirefrom the Confederate States, promoters opened banks to financetrading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during thatperiod failed. The depositors lost money andlost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century.Foreign banks too started to arrive, particularly inCalcutta, in the 1860s. The Comptoired'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in1862; branches in Madrasand Pondichery, then a French colony, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking center. The Bank of Bengal, which later became the State Bank of India. The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in1881 in Faizabad. It failed in 1958. Thenext was the Punjab National Bank,established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India. Around the turn of the 20th Century, the Indian economy was passingthrough a relativeperiod of stability. Around five decades hadelapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians hadestablished smallbanks, most of which served particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also some exchangebanks and a number of Indian joint stockbanks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally undercapitalized and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe,"In respect of banking itseems we are behind the times. We are like some old fashioned sailing ship, divided bysolid wooden bulkheads into separate and cumbersome compartments."The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India,Corporation Bank,Indian Bank,Bank of Baroda, Canara Bankand Central Bank of India. The fervour of Swadeshi movement leadto establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. Four nationalised banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking"

HISTORY OF BANKING IN INDIA -In ancient India there is evidence of loans from theVedic period(beginning 1750 BC).Later during theMaurya dynasty(321 to 185 BC), an instrument calledadeshawas in use, which was an order on a banker desiring him to pay the money of the note to a third person, which corresponds to the definition of a bill of exchange as we understand it today. During the Buddhist period, there was considerable use of these instruments. Merchants in large towns gave letters of credit to one another.

RANGE OF ACTIVITIES-Activities undertaken by large banks includeinvestment banking,corporate banking,private banking,insurance,consumer finance,foreign exchange trading,commodity trading,trading in equities,futures and options tradingandmoney market trading.

Chapter IIBHARATIYA MAHILA BANK

INTRODUCTION :Bharatiya Mahila Bank (BMB) is an Indianfinancial servicesbanking company based inNew Delhi, India. Former Indian Prime MinisterManmohan Singhinaugurated the system on 19 November 2013 on the occasion of the 94th birth anniversary of former Indian Prime MinisterIndira Gandhi.Although initially reported as a bank exclusively for women, the bank allows deposits to flow from everyone, but lending will be predominantly for women. India is the third country in the world to have a bank especially for women, afterPakistanandTanzania. The bank has been criticized as adopting a segregational approach to gender equality. Uma Shashikant of theThe Hinduwrites:Women-only banks are another instance of wanting to treat women differently. We guise this in many forms, some in garbs of reverence, some as protection, but they are all forms of discrimination that promote gender-based stereotyping. Women-only organisations stem from this eagerness to patronise women in the name of preferential treatment.

BANKING FOR WOMEN-In India, only 26% of women have an account with a formal financial institution, compared with 46% of men. That means an account in either a bank, a credit union, a co-operative, post office or amicrofinanceinstitution, according to a study by the World Bank.Also, for women, per capita credit is 80 per cent lower than males.

Furthermore, the results of a study using a global dataset covering 350MicrofinanceInstitutions (MFIs) in 70 countries indicates that more women clients is associated with lower portfolio-at-risk, lower write-offs, and lower credit-loss provisions, ceteris paribus provision.

CAPITAL-The Bank's initial capital consists of Rs 1,000 crores. The government plans to have 25 branches of the said bank by the end of March 2014 and 500 branches by 4th year of operation (2017).US-based FIS Global, in partnership with Wipro is leading the race for a Rs 1,000-crore contract to provide IT systems at the countrys first women-focussed bank, it is reliably learnt.

KEY MANAGEMENT-Initially the bank will have a board of directors consisting of eight women.The board consists of a business graduate sarpanchfromRajasthan,Chhavi Rajawat,DalitentrepreneurKalpana Saroj, who turned around a tubes business, retired public bankerNupur Mitra, academicPakiza Samad, private equity professionalRenuka Ramnath,Godrej Groupexecutive DirectorTanya DubashandPriya Kumar, a government nominee.

ABOUT BHARATIYA MAHILA BANK LTD.

Bharatiya Mahila Bank Ltd is the first of its kind in the Banking Industry in India formed with a vision of economic empowerment for women. Incorporated under the Companies Act 1956 on 5 August 2013, the Bank received the certificate of commencement of Business on 22 August 2013 and the Banking License from RBI on 25 September 2013. The Banks Corporate Office is at the IFCI Towers, 9thfloor, Nehru Place, New Delhi .Inaugurated on 19 November 2013, the Bank, at present has 24 branches across the country and aims to add 55 - 60 branches in the current financial year.While the Bank focuses on the entire pyramid of Indian women, special attention is given to economically neglected, deprived, discriminated, underbanked, unbanked, rural and urban women to ensure inclusive and sustainable growth. The Bank with a team of professionals with rich experience and expertise has designed and developed new products and services to suit the needs of women of all segments including Self Help Groups, women entrepreneurs, salaried women, HNIs and Corporates.The Savings Bank rate of interest for Rupees One lakh and above is 5% and for amount less than Rs. One lakh, the interest rate is 4.5%.The Bank has designed many women centric products keeping in mind the core strengths of women so as to enable them to unleash their hidden potentials, engage in economic activities and contribute to the economic growth of the country. Most of the products are offered with a concession in the rate of interest for women customers.The Bank also conducts programmes on financial literacy, skill development, training for women of all segments of the society so that women in turn generate more income, more jobs and growth opportunities and contribute significantly for the economic growth of the nation.Mrs. Usha Ananthasubramanian is the Chairman and Managing Director of the Bank.The Bank has been allocated with an initial capital of Rs. 1000 Crores.

BOARD OF DIRECTORS OF BHARATIYA MAHILA BANK LTD.

Ms. Usha Ananthasubramanian, Chairman and Managing Director Ms. S M Swathi Dr.N. Srinivasa Rao Ms. Nupur Mitra, Director Ms. Renuka Ramnath, Director Ms. Tanya Dubash, Director Ms. Chhavi Rajawat, Director Ms. Kalpana Saroj, Director Dr. Pakiza Samad, DirectorMs. Usha Ananthasubramanian, Chairman and Managing DirectorMs. Usha Ananthasubramanian is the first Chairman and Managing Director of Bharatiya Mahila Bank Ltd.Prior to taking over as CMD of the Bank, she was the Executive Director of Punjab National Bank for over two years. She started her career with LIC. She joined the banking industry in February 1982 as a Specialist Officer in the Planning Stream of Bank of Baroda and rose to the rank of General Manager.At PNB, she was part of the Committee formed for examination of the blue print and other related tasks for setting up of the first women focussed Bank of India. She was the Head of the core management team constituted by the Ministry of Finance, Government of India, for coordinating the process of establishment of the Bank.In a career spanning over three decades, she has worked in various positions in the banking and allied areas. Key assignments held include General Manager South Zone, Bank of Baroda and Life Insurance Joint Venture Formation. She was closely associated with the transformation project of Bank of Baroda including rebranding and innovative HR initiatives.She holds a Masters degree in Statistics from the University of Madras and a Masters degree in Ancient Indian Culture from the University of Mumbai.

Ms. S M Swathi,Executive DirectorMs. S.M. Swathiis the Executive Director of Bharatiya Mahila Bank Ltd.Prior to taking over as ED of the Bank, she was the General Manager of Corporation Bank. She joined the banking industry in September 1980 as Agriculture Field Officer in the Rural Banking Department of Corporation Bank and rose to the rank of General Manager.In a career spanning over three decades, she has worked in various places in different capacities. She has handled large branches in Delhi and Bangalore and was Zonal Head of Hassan and Delhi at Corporation Bank. She was also the Circle Head of Delhi (North India) and Bangalore (Karnataka). At Head Office, she was incharge of Retail Lending, Marketing, Publicity, Corporate Communications and Research Divisions.She holds a Postgraduate degree in Agriculture. She was a gold medallist in graduation (BSc Agri). She is also an MBA in Finance in addition to CAIIB.

Dr. N. Srinivasa RaoDr. N. Srinivasa Rao is Director, Department of Financial Services, Ministry of Finance, Government of India.He is an officer from Indian Economic Services cadre. He is Doctorate in economics. Dr. N. Srinivasa Rao is also a director on the Board of Oriental Insurance Company Ltd.

Ms. Nupur MitraMs. Nupur Mitra is a graduate in Science with a Law Degree. Presently, she is Chairperson & Executive Trustee of Stressed Assets Stabilisation Fund (SASF) since January 2013. During November 1, 2011-December 31, 2012, she served as Chairperson & Managing Director of Dena Bank.Prior to this assignment she was Executive Director of Indian Overseas Bank. She started her career with Bank of India where she rose to the rank of General Manager.She has been a member on several committees constituted by Government of India, Reserve Bank of India and Indian Banking Association.

Ms. Renuka RamnathMs. Renuka Ramnath holds a Bachelor of Engineering from VJTI, University of Mumbai and an MBA from the University of Mumbai. She has also completed the Advanced Management Programme from the Harvard Business School.She is a private equity investment manager and founded Multiples in 2009. Ms. Renuka has spent over two and half decades in the Indian financial sector across private equity, investment banking and structured finance. In her last role as the MD & CEO of ICICI Venture for close to a decade, she has contributed in many ways to the evolution of that firm to one of the largest private equity funds in India.

Ms. Tanya DubashMs. Tanya Dubash is AB cum laud, Economics & Political Science, Brown University, USA, and an alumnus of the Harvard Business School. She was recognized by the WEF as a YGL in 2008. She is a Trustee of the Brown University and a member of the Brown - India Advisory Council.She is on the boards of several Godrej Group companies including Godrej Consumer Products, Godrej Industries, and Godrej Agrovet. As Executive Director & Chief Brand Officer she is also charged with enhancing the value of the Godrej Brand and evolving the Group to a more Brand driven organization.She heads the Strategic Marketing Group (SMG) that guides the Godrej Masterbrand and portfolio strategy, and chairs a Marketing Council comprising of Group Marketing Heads. She also heads Corporate Communications and Media for the Group and oversees Godrej Nature's Basket, a gourmet food retailing chain.

Ms. Chhavi RajawatMs. Chhavi Rajawat is currently Sarpanch of village Soda in Tonk District of Rajasthan. She holds a business management degree from Pune and a Bachelor of Arts from Lady Shriram College in New Delhi. She has held senior posts with private firms such as Bharti Airtel and the Carlson Group in the past.She has been elected an Aspen Fellow and she co-chaired the World Economic Forum India Summit (2012), received the Yuva Award (2013), was announced a Young Global Leader by World Economic Forum (2012), has been honored by Former President APJ Abdul Kalam (2011), and was recognized by the Young Indian Leader award by CNN (2010).

Ms. Kalpana SarojMs. Kalpana Saroj is chairperson of Kamani Tubes and Acme Steel. She was on theboard of Kamani Tubes when it went into liquidation in 2001, and after taking over the company, restructured it and brought it back to profit.She was awarded the Padma Shri for Trade and Industry and the Rajiv Gandhi Award for Woman Entrepreneurs.Ms. Kalpana Saroj has keen interest in Education also. More than 2000 students are benefited through services rendered by institutions sponsored by her which provide library, hostel and financial help to the needy students. She also works actively for the up-liftment of the Adivasis, destitute children, aged and infirm.

Ms. Pakiza SamadDr. Pakiza Samad is an academician.She is Ph.D. in Commerce and is an Associate Professor in Commerce with Zakir Hussain P.G. (Eve) College, Delhi University.

CHAPTERLAW OF BHARATIYA MAHILA BANK (BMB) :India's first women's bank, Bharatiya Mahila Bank was inaugurated in Mumbai by Prime Minister Dr.Manmohan Singh on the birth anniversary of Shrimati Indira Gandhi.One of the key objectives of the bank is to focus on the banking needs of women and promote economic empowerment. It is being looked upon as thebeginning ofa unique newinstitution thatwill providefinancial servicespredominantly towomen and women self-help groups to the small businesswomen and from the working woman to the high networth individual. Even though the bank is making its debut in metros and urban centre, it will enter rural areas before March 2014 and will focus on centres where working women population is significant. In Budget 2013-14, the Finance Minister had announced setting up of all-women bank with an initial capital of Rs 1,000 crore.Only 26 percent ofwomen in Indiaadmit to havinga bank account.Since fewerwomen than men have bank accounts, fewer women are able to get loans. Per capita credit in the case of women is 80percent lower than in the case of men. Hence the need for a bank that predominantly serves women. Bank credit is expected to grow at a compounded annual growth rate of 16.5 percent during the twenty yearperiod from2010to 2030.That willmean atwenty-fold increasefrom thelevel of creditin 2010. Thedepositbaseisexpectedtogrowatacompoundedannualgrowthrateof14.6 percentthatis14timesthelevelof deposits in 2010. Assuming that the share of credit for women remains the same which should not be the case and the share must increase even at that level total credit to women will grow to Rs.25 lakh crore. There is, therefore, an opportunity to reach more credit to more women, stated the Finance Minister during the inauguration of the bank. While the objective of the bank is financial inclusion, it would initially set up branches in all state capitals across the country to have a hub. It is a recognition of the fact that viable banking needs presence in areas of economic growth. Although, over 70% of banking business in India is controlled by public sector banks, all these banks were nationalized. The government has promoted only financial institutions such as IDFC and IIFL. In the past, it had promoted development financial institution IDBI, which converted into a bank. Post inaugural, seven branches became operational across the country, including Kolkata, Chennai, Ahemdabadand, Guwahati. The government has proposed opening of the bank branches in Delhi and Indore also after the Assembly polls. With its headquarters in Delhi, the bank proposes to have 25 branches by March 31, 2014. Therefore, after starting with one branch in each banking region, the bank will expand to 500 branches by the fourth year of operation, which is when it sees operations becoming profitable.

ChapterPRODUCTS OFFERED BY BMB:

DEPOSIT PRODUCTS-

SAVINGS ACCOUNT a ) BMB savings account : Highest ROI amongst nationalized banks: 4.5% - Up to Rs. 1 lakh 5.0% - Above Rs. 1 lakh Interest payable on daily product basis Zero balance Free International Debit-cum-ATM Card Free access to any bank's ATM up to 10 transactions Immediate credit of outstation cheques up to Rs. 25,000 No charges for RTGS/ NEFT/ Banker's cheque Unlimited transactions through bank's ATM and Debit-cum-ATM Card

b ) BMB Basic Savings Bank Deposit Account (BSBDA) Small :

Zero balance Relaxed KYC Free ATM Card 'RUPAY'

c ) BMB Silver Savings Account :

Rate of Interest: 4.5% - Up to Rs. 1 lakh 5.0% - Above Rs. 1 lakh Minimum opening balance: Rs. 10,000 Average quarterly minimum balance: Rs. 25,000 Immediate credit of outstation cheques up to Rs. 25,000 25% concession on processing fees on Retail Loans Free 50 cheque leaves Free personal accident coverage of Rs 2.00 lac

d ) BMBGold Savings Account :

Rate of Interest (on daily product basis):4.5% - Up to Rs. 1 lakh 5.0% - Above Rs. 1 lakh Minimum opening balance: Rs. 10,000 Average quarterly minimum balance: Rs. 10,00,000 Auto sweep/reverse sweep facility is available in multiples of Rs.10 Lakhs Free unlimited personalized cheque books of 50 leave Free personal accident coverage of Rs 2.00 lakhs Unlimited debit and credit transactions. No ledger folio charges Free Demand drafts, bankers cheques, RTGS & NEFT charges 50% discount on processing charges on all personal retail loans Transfer transactions are allowed freely without any limit (at base branch)

e ) BMBMoney Box : This savings bank account can be opened by all resident Indian children in the age group of 10 years to less than 18 years singly and also jointly with their parents/ natural guardian(s) Account may be opened with Rs.100/- Debit cum ATM card (RuPay) with limit of Rs.100/200/500/1000/2000 only with pre-authorization from parents at the time of opening of account Free monthly transfer of funds from parents accounts Free monthly account statement by e- mail to parents and child as well Takes care of idle money by moving it to interest earning account

LOANS-

1 ) Loans to SME - a ) BMB SME Easy Loan: Purpose: Working capital limits (both FB+NFB) & Term Loans for stocks and buildup of inventory /current assets, fixed assets needed for business purposes / capacity expansion/ modernization /technology up-gradation / R&D / shoring of NWC etc.Eligibility: Existing customer already availing credit facility from us New units Takeover of existing loans from other Banks/ Fis, subject to takeover norms, with satisfactory track record based on satisfactory credit opinion report from other Banks as per IBA format and obtention of CIBIL report where availableFeatures: A combo of working capital & term loan Maximum loan up to Rs. 20 Crores 100 bps concession for women entrepreneurs Quick sanction

b ) BMB Shringaar Beauty Parlour Loan :Eligibility : Individual Woman, Women jointly, sole proprietorship firms of woman and partnership firms and the companies where share of women partner/(s) is not less than 50%, running or intends to establish their own beauty parlours/ spas/ saloons Age of the applicant should be between 20 years and 60 years Minimum 2 years of proven experience or having degree/ diploma from a polytechnic / reputed beauty institute / organization The judgment regarding the competence of the applicant shall be vested exclusively with the Branch ManagerPurpose: For the purchase of tools, equipment, chairs, furniture & fixture, interior work, Jacuzzi and steam baths electric installation, air conditioners, coolers, refrigerator, heaters, TV, Music System, Computers etc. Purchase/construction of Shop Working capital for meeting day-to-day expenses of businessFeatures: Minimum amount of loan: Rs. 50,000 Maximum amount of loan: Up to Rs. 10 lakhs Attractive rate of interest Low processing charges

c ) BMB Annapurna Catering Service Loan :Eligibility: Individual Woman, Women jointly, sole proprietorship firms of woman and partnership firms/ltd. co, where share of women partner/(s) is not less than 50%, companies where CEO is female or majority stakeholder. Age of the applicant should be between 18 years and 60 years

Purpose: Purchase of utensils, cutlery, gas connection, Refrigerator, Mixer cum Grinder, Gas stoves, Hot case, Utensil Stand, Tiffin boxes, working table, water filter etc. Working capital for meeting day-to-day expenses of businessFeatures: Minimum loan amount: Rs. 5,000 Maximum loan amount: Rs. 1 lakh Low processing fees Term loan/ overdraft

d ) BMB Parvarish Child Day Care Centre/ Crche Loan :Eligibility: Individual woman, group of not more than three women jointly, sole proprietorship firms of woman and partnership firms where share of women partner/(s) is not less than 50% Age of the applicant should be between 21 years and 55 years Should be a graduate. This condition may be relaxed in deserving cases

Purpose of Loan: Purchase of utensils, cutlery, gas connection, refrigerator, furniture, office equipment viz. computer, printer, games, air conditioner, cooler, fan, water purifiers, & water dispensers, etc. Amount payable for franchise arrangements, if any For Interiors and furnishings. Working capital for meeting day-to-day expenses of business

Features: Working capital & term loan Minimum amount of loan: Rs. 50,000 Maximum amount of loan: Up to Rs. 5 lakhs Easy repayment in 5 years No collaterals

2 ) Loans to SHG (Self Help Groups)- a ) BMB SHG Loans: Both term-loan and working capital Savings linked loan Collateral: NIL Margin: NIL Processing fees: NIL b) BMB Micro Credit Card: To promote entrepreneurship in non-farm sectors like small artisans, self- employedpersons, rickshaw owners, weavers, etc. Working capital & term loan Maximum amount of loan: Up to Rs. 50,000 Margin: NIL

3 ) Loans to students- a ) BMB Saraswati Loan:Education Loan for Higher Studies in India & AbroadEligibility: Should be an Indian resident Should have secured admission for the eligible course. Ameritorious student (who qualifies for a seat under management quota) will also be eligible for loanFeatures: Easy finance from basic to higher education Loan up to Rs. 10 lakhs for studies in India and Rs.20 lakhs for abroad No security for finance up to Rs. 4 lakhs Simple formalities and easy repayment facility 1% concession in interest rate for girl students Concession for students of IIT/ IIM/ AIIMS/ AFMC Special scheme for students pursuing CA/ CS

4 ) Loans to professionals- a ) BMB Career Enhancement: For fully qualified working CA/ CS to set- up their own office Working capital & term loan Maximum amount of loan: Rs. 20 lakhs

5 ) Home loan- a ) BMB Apna Ghar Scheme: Eligibility All Indian Residents All individuals singly or jointly In case of salaried persons, principal applicant must be confirmed in the service & should have two years of aggregate service in previous & present employment put together Minimum age must be 21 years. Age of the borrower plus repayment period should not be beyond retirement age in case of salaried persons and 70 years in case of others. However co-borrowers minimum age can be 18 years. Person who already owns a house can also be considered for second house / flat for the purpose of self-occupation. Where property is held in joint names, all the joint holders should join as co- borrower to the loan Where property is owned by applicants parents/spouse who does not have regular/independent income, they should join as co-applicant only, irrespective of their age. Housing loan to HUF is not to be considered as it is not meant for the purposes of family business of HUF and also there are certain legal complications

Purpose: Construction of house / flat Purchase of ready built house/ flat Construction of additional floor on the existing house or extension of house Take-over of housing loan from other Bank/Institution, subject to takeover norms Purchase of old dwelling unit Purchase of plot of land, subject to the condition that a house will be constructed thereon within 3 years or up to the period allowed by Development Authority, whichever is earlier, from the date of purchase of plot, without resorting to penal interest.Features: No limit on loan amount Repayment period up to 25 years Lowest rate of interest No penalty for bulk amount & no pre-payment charges if paid through own sources Interest on a daily reducing balance method No hidden charges

6 ) Car loan- a ) BMB Dream Car:Purpose: Purchase of new car Purchase of old car (not older than 3 years car)

Eligibility : Permanent salaried employees, self-employed person, professional, farmer, businessman, proprietor/ partner of firms, director of a company, (either singly or jointly with spouse) with minimum net annual income of Rs. 3 lacs Income of spouse / father / mother / brother / sister (any one) can be clubbed, who will join as co-borrower Age Minimum 21 years & maximum 65 years Minimum 2 years borrower employment is required ( need not be the same employer)Features: Low rate of interest and EMIs Maximum loan amount: Rs. 75 lakhs for any car make/ model Repayment period: Maximum 7 years Concession of 0.25% to women borrowers Quick sanction Simple documentation No hidden charges

7 ) Advance against securities- a ) BMB Advance against Securities: Loan for meeting contingency needs of personal nature Loan against NSC/ KVP/ Govt. Bonds Easy documentation Low rate of interest

8 ) Kitchen modernization loan- a ) BMB Efficient Kitchen:Purpose: Renovation of kitchen - civil work, tiling & flooring, kitchen platform, sinks, plumbing & electrical work, painting, modular kitchen, CUPBOARDS, cabinets & lighting, etc. Purchase of electronic and electrical appliances for the kitchen viz. clean energy products like solar home lighting systems, efficient cooking stoves, solar stoves, water purifiers, RO, water softener, chimney, cooking range, dish washers, microwave ovens, OTG, induction stove, pressure cooker, hand blender, toaster, wet grinders, Home Flour Mill, mixer grinders, electric tandoors, refrigerators, fan, geyser, exhaust fan, water dispenser, electric rice cooker, food processors, juicer, barbeques, coffee maker etc. Purchase of furniture items for kitchen, dining table and chairs Purchase of utensils, crockery & cutlerywith a ceiling of Rs. 25000/-Eligibility: Permanent Salaried women employees, self-employed women, women professionals, businesswomen, proprietor/ partner of firms with net annual income of less than Rs. 3 lacs Income of spouse / father / mother / brother / sister (any one) can be clubbed, who will join as co-borrower Age of the borrower Minimum - 21 years Maximum for salaried persons 60 years and others 55 years Principal applicant must have consistent and stable source of income minimum for last 2 years Women customers maintaining satisfactorily conducted savings bank account (Bank being new this condition may be relaxed initially) The flat/ home should not be older than 25 yearsFeatures: Minimum amount of loan: Rs. 50,000 Maximum amount of loan: Rs. 5 lakhs Long repayment period: 7 years

Easy Banking- 1 ) BMB Credit Card - Gold & Platinum: In affiliation with SBI Worldwide acceptable Cash withdrawal facility Comprehensive monthly statements Add-on cards2) BMB International Debit Card: Accepted at all Master ATMs in India & abroad Accepted at all merchant outlets/ POS Mini statement from BMB's ATM to check the balance Convenience of cashless purchasing power

Insurance-1 ) BMB-Sakhee (A Product of New India Insurance): (For Rural Women A/C Holder of Bharatiya Mahila Bank)

Sum Insured Rs.50000/- Maternity cover up to first two living children only after 2 years, if renewed without break is Actual subject to maximum of Rs.5,000/- For any surgery - Actual subject to maximum of Rs.25,000/- Age of insured is from 18 Years of age to 65 years Very Low Premium of Rs.506 only (Including Service Tax)

2 ) BMB-Nirbhaya (A Product of New India Insurance): (For Rural Women A/C Holder of Bharatiya Mahila Bank) Cashless Facility is available Maternity cover up to first two living children only after 2 years, if renewed without break is- Actual subject to maximum of 10% of Sum Insured Cosmetic Surgery in case of Accidental Injuries including acid attack 15% of Sum Insured Gynaecological health check-up (if claim free) from 4th year of policy is- 1% of Average Sum Insured Dedicated helpline for queries on health and nutrition Minimum premium is Rs.1385 only3 ) BMB-Parivar Suraksha (A Product of New India Insurance): (Family Floater) Day Care Expenses covered for any surgery due to the advancement of Medical Technology for which less than 24 hrs of hospitalization is required. Cashless facility is available. This policy covers family consisting of self, spouse and three dependent children (Additional premium shall be charged).

CHAPTERFEATURES OF BHARATIYA MAHILA BANK (BMB) :

Most of the senior executive of the bank have been hired on deputation from other public sector banks. Some salient feature of the bank are: First 25 branches of Bhartiya Mahila Bank to be in state capitals Finance Ministry has sought RBIs forbearance on rural norms.

Bank will offer 4.5% interest on saving deposits.

It will not insist on collateral since most title deeds are in name of male family members. It will lend to micro businesses like catering, crches & for upgrading kitchens in households.

The bank aims to have Rs. 60,000 crore business and 775 branches by 2020.

It will provide loans primarily to women, and will give low-cost education loans for girls.

Key positions, including treasury head and security head, held by women.

All-women board includes Usha Ananthasubramanian, (chairperson), Chavi Rajawat, Kalpana Saroj,Nupur Mitra, Priya Kumar, Renuka Ramnath & Tanya Dubash.

The Government has been working towards empowerment of women in the country.The flagship programs for rural employment and for universalizing education and health-care provide equal access for both men and women to help the cause of women empowerment. Nearly half of those getting employment under the Mahatma Gandhi National Rural Employment happen to be women. In addition, schemes for taking care of the special needs of women have been started for example; Janani Suraksha Yojana, which supports pregnant and nursing mothers, the Sabla scheme, empowers adolescent girls

BHARATIYA MAHILA BANK LTD., the first womens public sector bank in India has become operational from 19th November, 2013 and is presently having -23- branches. The Bank has ambitious plan for operations on a PAN India level with the key objective of focusing on the banking needs of women and promoting their economic empowerment.

BHARATIYA MAHILA BANK LTD. is positioning itself to achieve top of mind recall for all women by providing best-in-class services to woman belonging to the corporate/ HNI or the rural poor category. Towards this end, the Bank has adopted an ideal mix of technology and low cost delivery models to reach out to a wider group while bringing in efficiencies. The Bank is committed to focus on skill development and financial literacy through training besides focusing on women with specific products and services as per target profile. While the focus of the Bank would be to cater to the needs of women it would not exclude any other segment/individuals from its purview.BHARATIYA MAHILA BANK LTD. is in the process of resourcing intelligent and passionate workforce committed to assisting the organization in formulation, adoption and defining of business strategies and goals from time to time as also delivering business goals.

BHARATIYA MAHILA BANK LTD., wants employers to realize their potential and fulfill their aspirations as a professional Banker. It provides right environment, recognition and good career opportunities for everyone.If any candidate have a dream to share with and translate them into business reality and serve the country through the medium of Public Sector Bank, and also fulfill the prescribed eligibility criteria, they may be the right person wherein Bharatiya Mahila Bank is interested in for the following positions:

AMOUNT OF FEES / CHARGES FOR POSTAGE:The amount of fee to be paid is indicated below:Category of ApplicantAmount of Fees/ Charges for postage (Non-refundable)

SC/ ST/ Persons with Disability (PWD)Rs 100/-

GEN/ OBC/ Ex-ServicemenRs 600/-

SALARY & EMOLUMENTS:ScaleScale of Pay *

SMGS-IVRs 30600 900/4 34200 1000/2 - 36200

MMGS-IIIRs 25700 800/5 29700 900/2 31500

MMGS-IIRs 19400 700/1 20100 800/10 28100

* The above salary scales are under revision with effect from November 2012.At present, initial monthly emoluments of Middle Management Grade/ Scale II Officers, including DA, HRA & CCA are approximately Rs 36,500/- per month, Rs 51,375/- per month for Middle Management Grade/ Scale III Officers and Rs 61,170/-per month for Senior Management Grade/ Scale IV Officers, in a Metropolitan Centre. Allowances may vary depending upon the place of posting. In addition, Conveyance, Medical Aid, LTC and retirement benefits are admissible, as per rules of the Bank, in force from time to time.PROBATION PERIOD: The selected candidate will be on probation for a period of Two years (-2- years) of active service from the date of his/ her joining the Bank.

RELAXATION IN UPPER AGE LIMIT FOR RESERVED POSITIONS:1Scheduled Caste/ Scheduled Tribe5 years

2Other Backward Classes3 years

3Persons with Disability10 years

4All persons who have ordinarily been domiciled in Kashmir Division of J & K State during 01.01.1980 and 31.12.19895 years

5Ex-servicemen and Commissioned Officers including ECOs/ SSCOs who have rendered at least 5 years military service and have been released on completion of assignment (including those whose assignment is due to be completed within the next one year from the last date for receipt of application) other than by way of dismissal or discharge on account of misconduct or inefficiency or on account of physical disability attributable to military service or on being declared as invalidi. by 5 years for selection through written test and interviewii. by 3 years plus period of service in Armed Forces for selection through interview onlyiii. by 3 years for the post of Manager (Security) subject to a maximum age limit of 40 years.

6Persons affected by 1984 riots5 years

NATIONALITY/ CITIZENSHIP (AS ON 01.06.2014):A candidate must be either i) a Citizen of India or ii) a subject of Nepal or iii) subject of Bhutan or iv) a Tibetan refugee who came over to India before 1st January 1962 with the intention of permanently settling in India or v) a person of Indian origin who has migrated from Pakistan, Burma, Sri Lanka, East African Countries of Kenya, Uganda, the United Republic of Tanzania (formerly Tanganyika and Zanzibar), Zambia, Malawi, Zaire, Ethiopia and Vietnam with the intention of permanently settling in India. Provided that a candidate belonging to categories (ii), (iii), (iv) & (v) above shall be a person in whose favour a certificate of eligibility has been issued by the Government of India. A candidate in whose case a certificate of eligibility is necessary may be admitted to the examination/ interview conducted by the Bank but on final selection, the offer of appointment may be given only after the Government of India has issued the necessary eligibility certificate to him.

RESERVATIONS:A) Reservation for SC/ ST/ OBC/ PWD candidates will be provided as per Government guidelines. Candidates belonging to and applying under Reserved OBC Category are required to submit a Certificate regarding his/ her Community in the prescribed format FORM OF CERTIFICATE TO BE PRODUCED BY OTHER BACKWARD CLASSES APPLYING FOR APPOINTMENT TO POSTS UNDER THE GOVERNMENT OF INDIA (Format available on Banks website along with This Notification) and the Certificate should contain the NON-CREAMY LAYER CLAUSE which is not more than one year old. Candidates not producing the above certificate will not be considered under the OBC Category.B) Persons with Disabilities: Under Section 33 of Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 only such persons would be eligible for reservation who suffer from not less than 40% of relevant disability and are certified by a Medical Board appointed by the Central/ State Govt. Accordingly, candidates with the following disabilities are eligible to apply. Applicants claiming such benefits should produce certificate in original in support of their claim at the relevant time, as advised by the Bank.As the reservation for Persons with Disabilities is on horizontal basis, the selected candidates will be placed in the appropriate category (viz. SC/ ST/ OBC/ GEN) to which they belong.Visually Impaired (VI)Blindness refers to a condition where a person suffers from any of the following conditions: i) Total absence of sight ii) Visual acuity not exceeding 6/60 or 20/200 (Snellen) in the better eye with correcting lenses (iii) Limitation of the field of vision subtending an angle of 20 degrees or worse.Low vision means a person with impairment of visual functioning even after treatment or standard refractive correction but who uses or is potentially capable of using vision for the planning or execution of a task with appropriate assistive device.Deaf & Hearing Impaired (HI) The deaf are those persons in whom the sense of hearing is non-functional for ordinary purpose of life i.e. total loss of hearing in both ears. They do not hear; understand sounds at all even with amplified speech. Hearing impairment means loss of sixty decibels or more in the better ear in the conversational range of frequencies.Orthopedically Handicapped (OH):OH person is one having minimum of 40% physical defect or deformity which causes interference with the normal functioning of the bones, muscles and joints and is so certified by a Medical Board appointed by the State Government. Only those who fall in the following categories are eligible to apply:i. BL Both Legs affected but not Arms;

ii. OA One Arm affected (Right or Left) - a) Impaired Reach; b) Weakness of Grip; c) Ataxia;iii. OL One Leg affected (Right or Left);iv. MW Muscular Weakness & Limited Physical Endurance.

Use of a Scribe / Paper Writer:A SCRIBE / PAPER WRITER, to write the written test / examination, on behalf of a Visually Challenged (VC) [Blind] candidate & an orthopedically Challenged (OC) candidate [whose writing speed is affected by Cerebral Palsy], may be used. In all such cases where a Scribe is used, the following rules will apply:i) The candidate will have to arrange his own scribe at his/her own cost.ii) The scribe may be from an academic stream different from that stipulated for the post. iii) Both the candidate as well as scribe will have to give a suitable undertaking confirming that the scribe fulfils all the stipulated eligibility criteria for a scribe mentioned above. Further in case it later transpires that he/she did not fulfill any laid down eligibility criteria or suppressed material facts the candidature of the applicant will stand cancelled, irrespective of the result of the written examination.iv) Those candidates who use a scribe shall be eligible for compensatory time of 20 minutes for every hour of the examination.

SPEECH OF FINANCE MINISTER P.CHIDAMBARAM AT THE INAUGURATION OF BHARATIYA MAHILA BANK IN MUMBAI.Mumbai :November 19,2013

The launch of Bharatiya Mahila Bank (BMB) is not only a symbol of women empowerment but the substance of empowerment said Finance Minister P Chidambaram at the inauguration of Indias first women commercial bank the Bharatiya Mahila Bank by the Prime Minister Dr. Manmohan Singh and UPA Chairperson, Ms. Sonia Gandhi in Mumbai on Tuesday.

Addressing a post inaugural press conference, the Finance Minister said only26 percent of women in India have bank accounts and per capita credit for women is currently 80 percent lower than that for men. He said, there is deep seated bias, at the institutional and individual levels against women. Since fewer women have bank accounts, fewer women get bank loans. Hence, the need for a bank that caters predominantly to womens needs. Mr. Chidambaram added that the seed we have sown today, when it branches out and flowers, it will bring enormous benefits to half the population of the country.

Finance Minister stated that the Bharatiya Mahila Bank will be a universal bank which will establish branches across India and offer all banking products that a regular commercial bank offers. He said that BMB would design and offer special products tailor made to the needs of women. It will cater to everybody from self help groups to lower middle class women to high net worth individuals.

Apart from the Nariman Point branch which was inaugurated in the hands of the Finance Minister today, Bharatiya Mahila Bank has six other branches at Kolkata, Chennai, Bangalore, Ahmedabad, Lucknow and Guwahati. Two other branches in Delhi and Jaipur would be inaugurated in December, after the conclusion of state assembly election process there. By the end of the financial year, the Bank plans to open at least 25 branches, eyeing a presence in every state capital. The bank network will be expanded in subsequent years to reach 770 branches by 2020 covering Tier II and III cities, rural areas and unbanked areas. The Bank has drawn up an ambitious business plan to touch Rs 60,000 crores total business (deposits + advances) by 2020.

Bharatiya Mahila Bank, headquartered in New Delhi is headed by Ms. Usha Ananthasubramanian, a Public Sector banker with 31 years experience. The Finance Minister also announced the 8 Member all women Board of Directors of the Bank. The other members on the board include Chhavi Rajawat an MBA and a sarpanch from Rajasthan, Nupur Mitra former CMD of Dena bank, Renuka Ramnath of Multiples Alternate Asset Management,Tanya Dubash (Godrej) Executive Director and President (Marketing) of the Godrej group, Kalpana Saroj CEO of Kamani Tubes and government nominee Priya Kumar.

In the Budget 2013-14, the Finance Minister had announced setting up of all-women bank with an initial capital of Rs 1,000. crore. Former Chairman of Canara Bank Mr. M B N Rao was tasked with drawing the blue print of the Bank, the job he finished in a record time of two months.

BHARATIYA MAHILA BANK LAUNCHES BMB RUPAY CARDMumbai - 07.08.2014

Bharatiya Mahila Bankhas launchedBMB RuPay Debit Card with EMV chip.The card was launched bySmt. Usha Ananthasubramanian,Chairman and Managing Director, Bharatiya Mahila Bank in the presence ofShri. A. P. Hota,Managing Director and CEO, National Payments Corporation of India (NPCI), at a function held here today.Smt. Usha Ananthasubramaniansaid that, the launch symbolizes BMBs eagerness and commitment in taking all technology services to its valued customers at the

earliest.RTGS & NEFT services are already available at all the branches of the Bank, she added. The Bank will soon be introducing other innovative, value added products and services viz EKYC for hassle-free account opening and biometric authentication services for illiterate customers. BMB has already set up 23 ATMs that accept cards of all brands and plans to deploy 60 ATMs in current year.The firstBMB RuPay Cardwas received by Mrs. Usha Kulkarni, Chairperson, Pratibha Industries Limited.The Indian market offers huge potential for the RuPay card, said Shri.Hota, MD & CEO of NPCI. The benefits of RuPay debit card are flexibility of the product platform and high levels of acceptance, he added.The cards issued by BMB can be accepted at all NFS Network ATMs of 1,73,000+, 9.89 lacs POS terminals at Merchants Establishments and 15,000 + online merchant sites.

BHARATIYA MAHILA BANK BAGS CORE BANKING SYSTEM INITIATIVE AWARD 2014.31.07.2014

Bharatiya Mahila Bank Ltdhas bagged the CoreBanking System Initiative Award of the year2014 by the Asian Banking and Finance - Retail Banking Awards 2014, Singapore.Smt. Usha Ananthasubramanian, Chairman & Managing Director, Bharatiya Mahila Bank Ltd, said that the Bank launched its operations with Core Banking Solutions and ATMs from day one. This has been achieved within a period of less than two months from the grant of license by RBI to the launch date 19.11.2013. The Bank has automated almost all the processes and will soon be launching internet banking and mobile banking services. The internet banking of the Bank, will be offering certain first of its kind, value added services.The Bank has lined up branches at 12 new centres across the country which would become operational shortly.