How to Open a Bank CSP (Customer Service Point)?

To Open a Bank CSP / Customer Service Point (Centre) or to become a CSP / Bank Mitra / BCA / VLE (Village Level Entrepreneur) is a sound career option for the youth. Many youths are aspiring for this work and hence many so called “agents” have set up their network to take undue advantage of these gullible youths. Not only that, even amongst the authorized CBC companies, there may be some companies whose dealing with the aspiring candidates may not be transparent and support may be poor once you have joined as a BCA. Hence, it is utmost important to select a reputed CBC Company with a strong track record. If any person representing him/her as an authorized agent or employee of the CBC, it is always advisable to cross-check with the Head Office of the company about the credentials of such person. You can also apply online on the website of the Company or submit the application by email/post. Most importantly, any payment to be made in this connection, must be made by A/c Payee cheque drawn in favour of the CBC Company.

Eligibility criterion to become a BCA/CSP/Bank Mitra/VLE:

·        Age: Applicant must be at least 18 years of age.

·      Minimum educational qualification - 10th level examination passed from a recognized board.

·        Should have a valid Aadhaar and PAN number.

·        Must know the local language

·        Preference will be given to a local person

·        Must be computer literate

 Documents required with application:

 .   Application form duly filled in and signed by the candidate

.   Two passport size photos

.   Cancelled Cheque without signature

Self-Attested True Copy of:

-         Education certificate (Highest Education Qualification)

-         Proof of residence (Aadhar Card)

-         Photo ID Proof (Aadhar Card)

-         PAN Card

(the original is also to be produced only for verification by CBC Company)

Following documents to be produced as and when advised by the CBC Company:

-       Clean Police Report

-    The photograph of the place where the kiosk is to be set up (one photo from outside and one from the inside of the place). This is not required under tablet model.

-     Ownership document / Rent Agreement of the place for the kiosk This is not required under tablet model.

 Other pre-conditions:

ü     The branch with which the applicant wants to be linked must be willing to engage a BCA in the locality from where the applicant wants to operate.

ü    Must have necessary resources for purchasing required computer peripherals / tablet / internet connection / suitable space for setting up the kiosk / furniture (as per the specification / configuration fixed by the bank. Space / furniture may not be insisted upon under tablet model).

ü   The candidate has to pass the IIBF (Indian Institute of Banking and Finance, Mumbai) online certificate exam within specified period after the engagement as a BCA.

ü    Must have a bank account with Cheque Book facility

ü    Must be able to obtain clean Police Report from the Police Station having jurisdiction over the residential area of the applicant

ü   Must not be working as a BCA of any other bank

ü    If worked as a BCA of any bank in the past, must give acceptable reason why he ceased to be a BCA. This fact must be mentioned in the Application Form.

ü    Must have clean CIBIL (Credit Rating Agency) Report.

 How the application moves further:

As stated above, the CBC Company plays a vital role in engaging the BCA. The CBC has information about the branches which want to engage new BCA. Some time, CBC is looking for new BCA to fill up these vacancies.

After receipt (online or physical) of the application, the CBC will verify the documents, visit the applicant and the proposed place. CBC will also make discreet inquiry about the reputation of the applicant. CBC will introduce the applicant to the Branch Manager, who will also interview the applicant. The CBC will submit the documents to the Branch. If the Branch Manager is satisfied about the eligibility criterion and capability of the candidate, he will submit the proposal to higher authority for generation of BCA Code. After receipt of the Code, the CBC company will issue Authority Letter and ID Card to the applicant to work as a BCA.  CBC Company will also give training, product knowledge, Welcome Kit, etc.

With the nationalization of India’s 14 major banks in 1969, the seed of Social Banking (the term Financial Inclusion was not coined by then) was sown. The nationalization of banks in India is a glorious example of adaptation by commercial business houses from profit to public service without losing the commercial viability of the business. As usual to public sector, various committees have been appointed from time to time to achieve the objectives of nationalization. Khan Committee (2004) recommended to implement Business Facilitator (BF) model (for delivering non-financial banking services) and Business Correspondent (BC) model (for delivering financial banking services). As a result, the concept of Financial Inclusion was first introduced in India in 2005 by the Reserve Bank of India. The objectives of Financial Inclusion are to provide basic no-frills banking account for making and receiving payments. Later, Dr Rangrajan Committee (2006) went further and recommended to exploit BC model not only for delivering banking services but entire gamut of financial services (insurance, pension plans, investment, Financial Literacy, etc)  to financially excluded, vulnerable section of the society under Financial Inclusion Project and bring them into mainstream economy.

What is Financial Inclusion:

Financial Inclusion is the process of delivering appropriate financial products and services needed by weaker sections of the society at an affordable cost in a fair and transparent manner.

The present status:

There are 10 lakh BCAs working under the project as on March 2019 and delivering following financial services to customers in their vicinity:

Though the features of the Project differ from bank to bank to some extent, they can be generally described as under:

Services offered through BC Model are:

a.   Opening of Saving Banks (PMJDY)/ Fixed Deposit /PPF/ Recurring account.
b.  Cash Deposit and Cash Withdrawal.
d.   Fund Transfer from one centre to another centre
e.   Balance Inquiry.
f.   Mini Statement.

g.   Linking of Aadhar Card and Mobile Number

h.   Payment of utility bills

i.   Opening Insurance Accounts (Atal Pension Yojana, PMJSY, PMJJY, etc)

j.  Payment of amount credited by Govt under PMGKY, PMKSNY, MGNREGA, Cooking Gas Subsidy, other DBT, Student Scholarship, etc)

k. Canvassing the loan a/cs (Agriculture - KCC, Term Loans, Gold Loans. Non Agriculture – Housing Loans, Car Loans, Gold Loans, etc)

l.  Recovery in overdue /NPA a/cs as advised by the branch

How the Project works:

The most important link in the project is the Corporate Business Correspondent (CBC) which is generally a reputed company. The CBC is selected after a strict due diligence process considering the technical and financial capabilities and reputation of the company. The bank also obtains Security Deposit and /or Bank Guarantee from the entity. The CBC is accountable for all the acts and omissions committed by the BC engaged under it as per the Agreement between the bank and the CBC. This provision is very important for instilling the confidence amongst the customers while transacting the banking transactions with the BCA and maintain the integrity of the transaction from end-to-end.  The CBC is getting commission on the work done by the BC, which is shared with the BC as fixed by the bank. The scope of dispute about the commission payable to BCA is rare as it is calculated as per the rate fixed by the bank. The bank will credit the shar of BCA commission first and then credit the Company’s share through special accounting process.

Gujarat Infotech Ltd is working as a CBC Company since 2012 of various banks and has good reputation amongst banks, BCAs and customers. At present hundreds of BCs are working under our Company. 

To become CSP Bank Mitra visit our website www.gujaratinfotech.com 

To apply online, contact us at 8448444245 for more information. A small step in right direction will change your future.

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NOMINATION IN BANK ACCOUNTS

INTRODUCTION:

Vertical and horizontal growth of banks in India is a matter of pride not only for the bank employees but also for any Indian, given the fact that the landscape of banking is predominantly occupied by public sector banks facing systemic and non-systemic issues. This success story simply put, while in 2011 only 58.70% of the households have atleast one or more bank account/s, in 2016 this ratio is increased to 99%. 

While opening a bank account, making nomination is very important aspect to avoid difficulty in claiming the balance/articles in case of unfortunate death of the account holder/all joint account holders. Though nomination facility is available for various purposes, this write up is confined to bank accounts only considering the audience and the medium. In case of joint account, appropriate operational instructions can mitigate the hardship to some extent but still it is advisable to make nomination in any of the accounts held jointly or singly. Considering the importance of making nomination, Reserve Bank of India has instructed all the banks to advise the depositors to avail the nomination facility and in case, if the depositor is not willing to avail the facility, to record the facts to this effect. Further, RBI has also instructed the Banks to put a legend (indicative statement), in the passbook/ Statement of Account/Fixed / Short Deposit Receipt, viz. “Nomination Registered” with the name of the nominee if the depositor has given the consent to also add, in the legend, the name of the nominee. 

The procedure for making nomination and settlement of claims by the nomination are governed by The Banking Companies (Nomination) Rules 1985 together with Clause 45(ZA) to 45(ZF) of Baking Regulations Act 1949. 

It is ironic that though the facility of nomination in bank deposit accounts/ locker facility is widely used, it is also generally misunderstood. The depositors in general understand that the nominee nominated by them will receive the balance amount (or articles, in case of Safe Custody Facility or Safety Locker Facility) and he/she will become the “sole owner” of the same. This perception is incorrect. The nominee receives the same as a trustee and  is responsible to hand over the same to the heir/s of the nominator if he/she (nominee) is not the sole heir of nominator/s or not the sole beneficiary of the will left by the sole account holder.  However, bank is discharged from its liability once the payment is made in due course to the duly nominated nominee. Nominee is required to produce his KYC Documents and the Death Certificate of the Nominator. It is to be noted that the nomination facility and settlement of claims under the facility is codified by RBI to facilitate the timely release of the fund/articles belonging to the nominator and it cannot override the Succession Law as applicable to the nominator/s.

WHAT IS A NOMINATION:

It is a codified procedure of appointing the individual/s by an account holder / by a lesser (hirer of locker) / by a bailer (safe custody of articles) for receiving the balance amount/articles in the locker/articles bailed with the bank by the person so appointed.

TYPES OF ACCOUNTS IN WHICH NOMINATION FACILITY IS AVAILABLE: 

All types of deposit a/cs, Safe Custody Facility and Safety Locker Hire Facility

WHO CAN NOMINATE: 

The individual/s who has/have opened the account in the personal capacity can nominate a nominee.

Nomination facility cannot be availed in accounts opened in fiduciary (representative) capacity e.g.  Body Corporate, Partnership Firm, Trust, HUF, Trust, Society, Co-Op Society, etc.

Note: Sole Proprietor can avail the facility of nomination in the account of the Sole Proprietor Firm. 

WHO CAN BE THE NOMINEE: 

Only an INDIVIDUAL can be nominated as a nominee.

Note:

1. A minor can also be nominated as nominee provided that the nominator has to appoint another person who is not a minor to act on behalf of the minor.

2. Nominee may or may not be a relative of the nominator.

3. An NRI can also be nominated but the repatriation of fund will be subject to RBI norms.

HOW MANY INDIVIDUALS CAN BE NOMINATED AS NOMINEE: 

In deposit accounts, only one individual can be nominated irrespective of the numbers of individuals in joint account.

In Safety Locker Hire Facility in the name two or more individuals where the operational instruction is JOINTLY, the hirers can nominate one or more individuals as nominee.

OTHER IMPORTANT FEATURES OF THE FACILITY: 

     1.  Nomination can be made at the time of opening the account or any time after opening the account.

     2.      In case of Joint Account, irrespective of the operational instructions, nomination is to be made by the joint signature of all the account holders.

     3.      Nomination is to be witnessed by a person other than the nominee. If the nominator is illiterate (authenticates the nomination form by putting thumb impression), it is to be witnessed by two witnesses.

     4.      Nomination can be canceled/ modified at any time by the nominator. In case of Joint A/c, all the account holders have to sign for the purpose.

     5.      Prescribed forms are to be used for respective purpose.

     6.      KYC Documents of the witness are not required.

     7.    Where a single individual is nominated as a nominee, the Nomination takes effect only after, in the case of sole account holder, the death of the sole account holder and in the case of joint account holders, death of all the joint a/c holders.

     8.      Nominee can give valid discharge in respect of the claim lodged against the bank. Bank is discharged once the nominee’s claim is settled. In case of dispute with the nominee, the legal heir/s has/have no recourse against the bank. However, he/she/they can proceed against the nominee. If the heir/s issue/s order from the court to bank for preventing the bank from entertaining nominee’s claim, the bank has to act as per the order of the court if the nominee’s claim is not settled before receipt of the court order.

    9.      If there are more than one heirs, nomination cannot prevent the other heir/s from claiming the share from the nominee and hence, under such circumstances, nomination cannot serve the purpose of a will if the nominator intends to make the nominee “the sole owner” of the subject fund/articles merely on the strength of nomination. To repeat, nomination can not prevent  the heir/s from claiming his/her rightful share from nominee. One’s wish to make an individual “the sole owner” of the fund/articles with a bank, can be fulfilled by a valid will.

   10.  Give nominee’s correct details (Name, Age, Relation (if any), Address etc) in the nomination form to avoid any problem in future. 

   11.  Bank has to prepare the list of inventory of the articles before the nominee removes or in the case of joint operations, nominee and the surviving hirer remove the articles. The list of the inventory is to be signed by all the claimants.

                                                      

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Disclaimer: This write up is for general information only. Please refer to RBI/Bank website or consult a legal expert before acting upon the information given in the write up. The writer or his employer is not responsible for any liability which may result from any action or omission of the person based on the information given hereinabove.