HIMACHAL GRAMIN BANK

HIMACHAL GRAMIN BANKHO: Jawahar Nagar, MANDI (HP)INFORMATION TECHNOLOGY SECTION 17 th January, 2007Reg: Calculation/Checking of interest on Deposits and AdvancesAccountsWe have already issued guidelines for checking of interest on deposits and advances accountsin computerized branches vide our I.T. Circular No. 07/2005 dated 04 th July, 2005. Instanceshave come to our notice that applying/calculation of interest in advances/deposit accounts isnot being done correctly by the branches. During the course of inspection, the inspectors havealso reported undercharges in certain branches which are on very higher side. In view of theerrors being committed by the branches, we are giving hereunder the following guidelinesfor strict compliance :DEPOPSIT ACCOUNTS1. Whether interest rates applied in Saving fund accounts is properly filled in all type ofcategory. Branches may check this from the following path :Main menu interest Normal interest rate(SB)If not, kindly filled it correctly in respective category.2. Where interest applied/credited in an account is up to Rs.2000.00 in a half year,Checking is to be done in 5% of the accounts.3. Where interest applied/credited in an account is more then Rs.2000.00 in a halfYear. Checking is to done in all the accounts.4. Ensure that correct interest on Term Deposited is credited/accrued on monthlyBasis and credited in the account on quarterly/half yearly interval.

LOAN ACCOUNTS1. To check whether interest rates applied in Loan account is properly filled in all typesof category. Branches may check it from the following path:Main Minu Bilingual Report Loans & Advances category Interestrate wise.2. In case it is observed that interest is being applied wrong, the account be edited andthe path would be as under :Main Minu Interest Old Rate wise Rate of Interest change (GL) OrMain Minu Account Account edit Credit Limit related Interestrate.Checking of interest should be done in the following manner :-3. Where interest applied/debited in an account is less thanRs.500.00 in a month, checking is to be done in 5% of the accounts4. Where interest applied/debited in an account is :Rs.500.00 or more but less than Rs.1,000.00 in a month, checking is to be done in10% accounts.5. Where interest applied/debited in an account is Rs.1,000.00 or more in a month,checking is to be done in all the account.In case any error is found in calculation during the checking of interest, 100% checkingshould be conducted irrespective of the amount of interest.All the incumbents incharge are, therefore, ensure strict compliance of the instructionswith regards to the levying of updating interest rates in order to avoid any revenueleakage/financial loss to the bank.ACKNOWLEDGE THE RECEIPT OF THIS CIRCULAR.GENERAL MANAGER

HGB:BO:2007:DATE________ACKNOWLEDGEMENTThe General Manager,Himachal Gramin Bank,Head Office:Mandi H.P.Reg: I.T. CIRCULAR No.02/2007 dated 17.01.2007We acknowledge the receipt of above circular and confirm that:1. Interest in all the deposit/loan accounts is paid/charged in accordance to Head OfficeInstructions.2. We have checked interest in all the accounts as per Head Office Instructions.ManagerB.O.___________HGB:BO:2007:DATE________ACKNOWLEDGEMENTThe General Manager,Himachal Gramin Bank,Head Office:Mandi H.P.Reg: I.T. CIRCULAR No.02/2007 dated 17.01.2007We acknowledge the receipt of above circular and confirm that:1. Interest in all the deposit/loan accounts is paid/charged in accordance to Head OfficeInstructions.2. We have checked interest in all the accounts as per Head Office Instructions.ManagerB.O.___________