Karnataka Bank Ltd.

REVISED CHARGES W.E.F 15-10-2009 (Excluding applicable Service Tax)

(Amount in Rs.)

Sl. No.	Particulars	charges
I.	Issue of Solvency Certificate including financial certificates issued to student pursuing studies abroad/ line of credit certificates.
a.	Up to Rs.1.00 lakh	Rs.300.00
b.	Above Rs.1.00 lakh & up to Rs.10.00 Crore	Rs.200.00 per lakh Minimum: Rs.300.00 Maximum: Rs.200000.00
	*The maximum charges for certificates issued to students pursing studies abroad is fixed at Rs.10000.00.

II.	Furnishing Confidential Opinion:
a.	For Individual account holders	Rs.100.00
b.	For Proprietorship Concern/ Partnership firms/limited company /Any others	Rs.500.00

III.	Processing Charges other than Agri. & Forex limits :
A	Fund Based / Non Fund Based limits
(i).	Upto Rs.25000.00 (Priority Sector Advances)	NIL
(ii)	Upto Rs.25000.00 (Non-Priority Sector Advances)	0.50% with a minimum of Rs.100.00
(iii)	Above Rs.25000.00 and Upto Rs.1.00 lakh	0.50% with a minimum of Rs.250.00
(iv)	Above Rs.1.00 lakh	0.50% Max: Rs.12,50,000.00

Guidelines:

a) No processing charges for advances against our own deposits including ODAD, and Government sponsored scheme.

b) The charges are to be levied on sanctioned amount.

c) In case of working capital limits, above prescribed processing charges be treated as per annum rates. For the period for which penal interest is being charged for working capital limit, the prorata processing charges need not be collected. For any sanctioned adhoc limit processing charges at prorata rate is applicable. In case of renewal of limits the processing charges is applicable from the date of application i.e., from the date on which penal interest ceases to be charged.

d) In respect of accounts under consortium, where we are not lead bankers, service charges, processing charges and other charges, if any, shall be levied as per the rates prescribed by H.O. or as per the rates charged by Lead Bank, whichever is higher. Prorata processing charges be charged from the date of application till the date of renewal sanction. In such cases, above prescribed rates be taken as ‘per annum’ rate.

IV.	Inspection Charges (Non Priority sector advances)
a)	Monthly inspection of goods under hypothecation/pledge
	Upto Rs.50000.00	10.00
	Above Rs.50000.00 – upto Rs.2 lakh	100.00
	Above Rs.2 lakh to Rs.10 lakh	200.00
	Above Rs.10 lakh to Rs.1 crore	300.00
	Above Rs.1 crore	1250.00
b)	Quarterly inspection of vehicles/boats, machineries etc.
	Upto Rs.25000.00	Rs.25.00 per occasion
	Above Rs.25000.00 – upto Rs.1 lakh	Rs.100.00 per occasion
	Above Rs.1 lakh	Rs.200.00 per occasion
c)	Pledge/delivery of goods
	Upto Rs.25000.00	Rs.75.00 for every occasion
	Above Rs.25000.00	Rs.125.00 for every occasion

V.	Inspection Charges (Priority sector advances)
	Up to & inclusive of Rs.25000.00	NIL
	Above Rs.25000.00	Rs.20.00 per inspection per borrower with a maximum of Rs.100.00 per annum

The above charges are to be levied strictly and credited to Income- IC on loans & advances along with applicable service tax on such charges.

Actual expenses incurred by the bank officials for conducting outstation inspection (if not arranged by the borrower) may be recovered from the borrower separately.

VI. Delayed submission of stock statements:

Charges from 8^th day :- 1% per annum on balances outstanding as on last day of previous month.

VII.	Issue of registered notices:
	Upto Rs.5000.00	Rs.50.00
	Above Rs.5000.00	Rs.75.00

VIII.	Minimum interest for closure of loans and advances
	For general loans and advances	Rs.100.00 or 15 days’ interest whichever is more
	Deposit loans	Actual interest
	Rent and insurance on jewel loans to be debited quarterly	Rs.2.00 per thousand or part thereof per quarter on the market value with a minimum of Rs.10.00 per quarter

IX.	Commitment charges**
	In respect of advances above Rs.50000.00 not being availed within grace period of 45 days in respect of fixed loans and 90 days in respect of working capital limits	0.50% per month on fresh sanctions subject to a maximum of Rs.50000.00. In case of renewal of working capital limits* with enhancements – 0.50% per month for enhanced portion subject to maximum of Rs.50000.00

*working capital limits means all types of working capital facility.

**applicable from date of sanction order till date of availment.

No commitment charges be collected in case of loans sanctioned under Government Sponsored Schemes.

X.	MISCELLANEOUS SERVICES
	Ledger Folio charges for Overdraft accounts to be levied quarterly	Rs.60.00 per page.

XI. BILLS PURCHASED/DISCOUNTED INCLUDING PURCHASE OF CHEQUES ETC.

Instruments	Rate per Rs.1000/- or part	Mini-mum	Handling charges	Collect-ing bank’s charges	Overdue interest	Returning charges
a) Outstation Cheques & document bills	Rs.6/-	Rs.15/-	Rs.25/- per bill plus actual postal registration charges Upto Rs.5000/- no handling charges.	Actuals	Sanctioned rate of interest plus 2% penal interest from 11^th day	Rs.50/- per instrument plus Registra-tion charges
b) Local cheques	Rs.3/-	Rs.10	- N.A.	- N.A-	- N.A. -	- N.A.-
c) Clean demand bills	Rs.7.50	Rs.25/-	Rs.25/- per bill + registration charges	Actuals	Sanctioned rate of interest plus 2% penal interest from 11^th day	Rs.50 per bill + Registra-tion charges

d) Usance bills	Handling charges at the rate of Rs.50 per bill, interest as stipulated.
e) Advance against supply bills	-do-
f) Teachers’ salary bill.	Individual members’ salary - Rs.6/-	Regn. Charges	Actuals	Sanctioned rate of interest plus 2% penal interest From 11^th day onwards	Rs.20/- + postage if any

Guidelines:

1. Discount/Interest charges should be collected at front-end, i.e., at the time of discounting the bills or on granting advance against supply bills.

2. Rate of interest on discount of Usance Bills are subject to change from time to time.

3. Sanctioned rate of interest means the rate of interest at which limits are sanctioned. Where there is no specific sanction, sanctioned rate means bank’s maximum lending rate.

XII. INLAND BANK GUARANTEES / DPGs AND INLAND LETTER OF CREDITS

Guarantees:
S e r v i c e s	charges
Performance Guarantee/Inland LCs	Rs.200.00 + 2.5% p.a. or part thereof
Other than performance Guarantee/DPGs	Rs.200.00 + 3% p.a. or part thereof
Inland LCs, Bank Guarantees, DPGs, fully secured by deposits (w.e.f 01-08-2011)	Rs.200.00 + 25% of the normal charge with a minimum of Rs.250.00

Guidelines:

1. In the first instance commission should be collected for the entire period of Bank Guarantee inclusive of claim period.

2. Fraction of a month should be treated as full month for calculation of guarantee commission.

3. Commission should be collected for a minimum period of 3 months where the specified period of liability is less than 3 months.

4. Where the guarantee period is extended, commission should be collected for the extended period at the above rates with a minimum of (Rs.100.00) Rs.200.

5. Commission prescribed is for individual transactions. However for the total sanctioned limit, processing charges should be collected as usual.

6. Commission should be collected for the entire period inclusive of claim period. If the guarantee outstanding is beyond the validity period for which guarantee is issued, due to the preventive action initiated by the borrower for making payment to the beneficiary such as stay order from court, arbitration proceedings etc. in such cases additional commission should be collected on a quarterly basis. In case of Inland LCs, commission should be collected for the validity period of LC (i.e. from date of issue to expiry date for negotiation) at the time of issue of LC. In case of DA LC, additional commission for the period upto due date of the bill (from expiry date of LC for negotiation) is to be collected at the time of lodging the bill under LC.

7. In the case of DPGs commission should be charged on reducing liability on an annual basis at the beginning of the financial year.

8. In the case of revolving LCs additional charges of Rs.200.00 only are to be collected for every reinstatement. (Commission for the entire period of commitment / LC expiry date should be collected at the time of establishing the LC)

9. In case of amendment to an LC, a sum of Rs.200.00 to be levied. For extended period, if any, in the amendment, corresponding charge should be levied additionally at rate prescribed in XII above.

10. In the case of Bills under our Bank’s LC, the LC negotiating branch shall levy the charges for the bills received under LC as follows:

Rs.200.00 per bill plus postal charges/communication charges.

XIII. FORE-CLOSURE CHARGES:

1% of the outstanding balance in case of loans and aggregate limit in the case of working capital facilities.

XIV. COMMITMENT CHARGES FOR NON-UTILISATION OF WORKING CAPITAL LIMITS

(i) 0.50% p.a on unutilized portion of funded working capital limits of above Rs.1.00 crore if the average quarterly utilisation is less than 75% of the sanctioned limit to be charged quarterly.

(ii) Excluded category:

(a) Working capital limits sanctioned to sick/weak units.

(b) Export credit (both pre-shipment and post-shipment) as well as against export incentives, viz., Duty drawback, cash compensatory support etc.

(c) Inland bills limits extended by way of bills purchased/discounted.

(d) Credit limits granted to commercial banks, financial institutions and co-operative banks including land development banks.

(e) Limits utilized by way of non-fund based limits by earmarking fund based limits.

(iii) Consortium accounts: In the case of consortium accounts the charges are to be fixed as decided by the consortium.

(iv) Multiple banking arrangements: In the case of multiple banking arrangements charges shall be levied purely on the basis of credit limits sanctioned by our bank vis-à-vis availment from our Bank.

XV. AGRICULTURAL ADVANCES:

1. PROCESSING CHARGES:

Advances	charges
Upto Rs.25000.00	Nil
Above Rs.25000.00 to Rs.2 lakh	0.50%. Minimum Rs.50.00
Above Rs.2 lakh	0.50%. Minimum Rs.1000.00 Maximum Rs.500000.00

2. ESTATE/LAND VALUATION CHARGES:

Value of lands/estate(Rs.)	charges
Upto Rs.25000.00	Nil
Above Rs.25000.00 to Rs.2 lakh	Rs.300.00
Above Rs.2.00 lakh to 5 lakh	Rs.750.00
Above Rs.5.00 lakh to 10 lakhs	Rs.1,300.00
Above Rs.10 lakh	Rs.100.00 per lakh, with minimum of Rs.1,300.00 and maximum Rs.10000.00

3. ESTATE/FIELD VISIT CHARGE:

a) Plantations	Rs.10.00 per acre, Min. Rs.200.00, Max. Rs.2,000.00 per year
b) Other Lands/Crops/activities:
Upto Rs.25,000.00 limit	NIL
Above 25,000.00 upto 2 lakhs limit	Rs.125.00 per visit
Above Rs.2.00 lakh limit	Rs.300.00 per visit

Guidelines:

1. Maximum two visits per year are eligible for levying visit charges.

2. Total cultivated/financed area whichever is higher shall be reckoned for visit charges.

4. SCHEME FORMULATION CHARGES:

i) At 0.50% of the bank loan (applicable in case of specific schemes formulated as per NABARD guidelines).

ii) At 0.30% of the loan in all other cases except in case of Govt. sponsored schemes and crop loans.

5. UNDER KRISHI CARD SCHEME:

A) Processing charges*

Advances	charges
Upto Rs.25000.00	Nil
Above Rs.25000.00 to Rs.2 lakh	0.50%. Minimum Rs.500.00
Above Rs.2.00 lakh	0.50%. Minimum Rs.1000.00 Maximum Rs.500000.00

* Applicable at the time of renewal of KCOD also at the Branch level.

B) Handling charges to be levied as on March every year and on closure of the account

Advances	charges
Upto 25000.00	Nil
Above 25000.00	Rs.300.00 per year.

XVI. ALLOWING DRAWINGS AGAINST CLEARING CHEQUES:

As provided in the sanction/ 2% over and above the sanctioned rate/ maximum lending rate inclusive of penal rate for actual days of use of bank funds as the case may be.

XVII. Schedule of charges for foreign exchange transactions:

1	EXPORT TRANSACTIONS:
A	COMMISSION ON EXPORT BILLS PURCHASED/DISCOUNTED/NEGOTIATED
	i.	For each foreign currency and rupee bill purchased/discounted/negotiated
	a.	LC Bills
		Upto Rs.5.00 lakhs or equivalent	Rs.250/bill
		Over Rs.5.00 lakhs or equivalent	0.10% with a maximum of Rs. 2000/-
	b.	Non LC Bills
		Upto Rs.5.00 lakhs or equivalent	Rs.500/bill
		Over Rs.5.00 lakhs or equivalent	0.25% with a maximum of Rs. 2500/-
	In case a purchased /discounted / negotiated bill [both in foreign currency as well as in Rupees] is later converted into a collection item, the commission as applicable to collection bills shall not be charged.
	In case an export bill for collection [both in foreign currency as well as in Rupees] is subsequently purchased / discounted, the bank will recover the charges as applicable to export bills purchased/ discounted and shall not levy the commission as applicable to collection bills.
	ii.	Where an Authorised Dealer in India sends an export bill for negotiation to another Authorised Dealer in India [due to reasons such as LC being restricted to the latter or the LC has been confirmed by latter, etc.] the following charges shall be collected by the former.
	a.	Upto Rs.5.00 lakhs or equivalent	Rs.500/- per bill
	b.	Over Rs.5.00 lakhs or equivalent	0.25% with a maximum of Rs.2,500/-
	iii.	Where reimbursement under a letter or credit is claimed by an Authorised dealer in India, a reimbursement commission shall be recovered by reimbursing bank as under;
	a.	Upto Rs.5.00 lakhs or equivalent	Rs.500/- per reimbursement
	b.	Over Rs.5.00 lakhs or equivalent	0.25% with a maximum of Rs.2000/- per reimbursement.
	iv.	A commission of 0.25% with a minimum of Rs.500/- shall be charged for joining in customers guarantees / indemnities and for giving guarantees/ indemnities on behalf of customers to other banks in India in respect of discrepancies in documents negotiated under letters of credit.
	v.	In case of overdue export bills purchased/discounted/negotiated (i.e where the proceeds are not received in Nostro account on or before the due date), additional commission shall be charged as under;
	a	Upto Rs.5.00 lakhs or equivalent	Flat Rs.250/- per bill per quarter or part thereof on realization/ reimbursement for the period beyond due date with a maximum of Rs.1,000/-
	b	Over Rs.5.00 lakhs or equivalent	Flat Rs.500/- per bill per quarter or part thereof on realization / reimbursement with a maximum of Rs.2,000/- for the period beyond due date.

In case of export bills drawn on countries with externalization problems but paid in local currency and the exporter has obtained necessary approval from Reserve Bank of India for extension, charges as per v (a) and (b) above shall not be levied.

B	EXPORT BILLS SENT ON COLLECTION
	i.	Commission on export bills for collection and export under consignment arrangements shall be recoverable as under;
		Foreign currency and Rupee export bills					0.0625%/bill. Minimum Rs.250/- and maximum Rs. 5000/-
Note:		These charges are also recoverable from the exporters where advance payment towards exports is received
	ii.	If the entire set of export documents have been sent by the exporter directly to the overseas buyer with the permission of the sanctioning authority, the Authorised Dealers while disposing of the relative GR forms to collect.					0.10% subject to a minimum of Rs.500/-
	iii.	In case of overdue export bills sent on collection (ie. where proceeds are not received in India on or before the due date), additional commission shall be charged as under:
	a.	Upto Rs.5.00 lakhs or equivalent					Rs.250/- per quarter or part thereof on realization subject to a maximum of Rs. 1000/-
	b.	Over Rs.5.00 lakhs or equivalent					Rs.500/- per quarter or part thereof on realization subject to a maximum of Rs.2000/-
	In case of export bills drawn on countries with externalization problems but paid in local currency and the exporter has obtained necessary extension from Reserve Bank of India charges as per iii (a) & (b) shall not be levied for such extension.
	iv		Where bank charges are to be recovered from the drawee, but are refused by them, such charges shall be recovered from the exporters.
C	COMMISSION IN LIEU OF EXCHANGE
	Commission @ 0.125% in lieu of exchange with a minimum of Rs.250/- shall be collected from the exporter in case of following transactions:
	i.		Where preshipment advance has been granted by an Authorised Dealer against a letter of credit / export order but the documents under the relative letter of credit/ export order are negotiated through another bank.
	ii.		Where the proceeds of an export bill negotiated by an Authorised Dealer are paid in foreign currency to another Authorised Dealer.
	iii.		Where an export bill is sent for collection abroad by one Authorised Dealer but the payment is received in Rupees through another Authorised Dealer in India.
	iv.		Where an export bill is negotiated / purchased / sent for collection and the proceeds thereof are credited to foreign currency [EEFC] account in part or in full, on the foreign currency amount credit to EEFC account.
	v		Deemed export bills in foreign currency as defined by the Reserve Bank of India/ Exim policy from time to time.
D	EXPORT LETTERS OF CREDIT
	Letters of Credit include letters of credit, standby by letters of credit, letters of authority, orders to negotiate, orders for payment and all types of documents of similar nature.
	i.	An advising commission shall be charged for advising each export letter of credit and its amendments. Where a letter of credit has been advised through another Bank, the latter may not levy any charge for passing on the credit to the beneficiary, except actual out of pocket expenses.				Rs.500/- per LC Rs.250/- per amendment
	ii.	The charges for adding confirmation to a letter of credit shall be as under
	a.	Commitment charge for the full validity of the credit at a rate of 0.15% for every quarter or part thereof with a minimum of Rs.250/-
	b.	Usance charge according to the tenor of the bills as under;
		0.20% for bills upto 3 months sight, minimum Rs.250/-
		0.20% for the first three months plus 0.10% per month in excess of three months for bills over 3 months sight, minimum Rs.500/-
		In case of extension of a letter of credit to which confirmation has been added by a bank in India, if such extension exceeds 3 months [ one quarter] from the date of the letter of credit additional commitment charge shall be recovered as above.
		When the amount of a letter of credit confirmed by a bank in India is subsequently increased, both usance and commitment charge as above shall be collected on the amount so increased.
	iii.	When transfers are made under a transferable letter of credit [whether full or in part and whether endorsed on the credit itself or not], charges shall be recovered for each advise of transfer.		Each transfer Rs.500/-
				Every amendment Rs.200/-
	iv.	On all letters of credit calling for usance bills to be drawn on and accepted by banks in India, an acceptance commission shall be charged at the rate of 0.15% per month.
E	CERTIFICATES
		Charges for issue of certificates/ attestation in respect of export transactions.		Flat Rs.100/- per certificate/ attestation.
F	MISCELLANEOUS INSTRUCTIONS
	i.	These Rules shall also be applicable to Deemed Exports as defined by the Reserve Bank of India/ Exim Policy from time to time.
	ii.	Where the customer has given specific instruction to the bank at the time of negotiation /purchase / discount to credit portion of the foreign currency amount to the EEFC account after realization, the following charges shall be recovered.
		Charges vide 1A on the amount negotiated / purchased / discounted and paid in rupees to the exporter and Commission @ 0.125% in lieu of exchange with a minimum of Rs.250/- on the foreign currency amount credited to EEFC account vide 1C (iv)
	iii.	Where the bank purchases / negotiates / discounts a portion of the bill amount and handles the remaining balance on collection basis, the following charges shall be recovered:
	a.	Charges vide Rule 1A on the amount negotiated / purchased / discounted
	b.	Charges vide Rule IB on the amount handled on collection basis
	iv.	Bank which has negotiated letters of credit documents received from another bank outside the centre of negotiation under restricted letters of credit and transferred the proceeds to that bank is entitled to charge commission applicable to inland remittances.			DD/TT/MT/PO charges as per Accounts circular currently in force.
2	IMPORT TRANSACTIONS
		Commission shall be payable at the time of opening of the letter of credit or at the time of amendment thereof and no refund shall be allowed.

A	APPLICATION OF CHARGES
i.		The following charges shall be recovered from the importers for establishing letters of credit including standby LCs: Commitment charge for the full validity of the credit i.e., from the date of opening of the LC to the last date of its validity) @ 0.15% for every quarter or part thereof with a minimum of Rs.250/- and Usance charge according to the tenor of the bill as under: 0.20% for bills upto 3 month's sight with a minimum of Rs.250/- 0.20% for the first three months plus 0.0750% per month in excess of three months for bills over 3 months' sight with a minimum of Rs.500/- For the purpose of levying commitment and usance charges the total amount committed inclusive of interest amount and tolerance level shall be reckoned. The above scale of charges shall be collected on letters of credit, as under:
	a.	Where the amount of a letter of credit does not exceed Rs.4.00 crores [or in equivalent Foreign currency] commission shall be charged at rates as specified above.
	b.	Where the amount of a letter of credit exceeds Rs.4.00 crores [or in equivalent foreign currency]				1. for the portion upto Rs.4.00 crores same as above 2. for the portion exceeding Rs.4.00 crores, 50% of the charges applicable to Rs.4.00 crores.
	c.	In case of a letter of credit established against 100% cash deposit as security.				25% of normal charge with a minimum of Rs.500/-
ii.	If any extension of the validity of the letter of credit falls within a three month period for which commitment charge has already been collected a flat amendment commission of Rs.500/- shall be recovered. However, for an amendment extending the validity of the letter of credit beyond a three month period [for which commitment charge has already been collected] a fresh commitment charge at the applicable rate per quarter or part thereof shall be recovered subject to a minimum of Rs.500/- on the outstanding liability under the LC.
iii.	In case of enhancement of the value of letter of credit, both the usance and commitment charge as applicable to establishing a letter of credit shall be recovered for the additional amount, on the outstanding liability under the LC: Minimum Rs.200/- Each enhancement to be considered separately without adding to original LC.
iv.	In case of amendment altering the tenor of the Bill of Exchange appropriate additional usance charge shall be collected on the outstanding liability under the LC.
v.	Any amendment to a letter of credit, other than extension of its validity or enhancement of its value, shall attract an amendment commission of Rs.250/-
vi.	Any revival or reinstatement of an expired letter of credit shall be at the option of the bank within 3 months from the date of expiry and shall be subject to recovery of usance charge and commitment charge from the date of expiry upto the validity period of the revived letter of credit. Charges as per 2A (i)
B	CRYSTALLISATION OF IMPORT BILLS UNDER LETTER OF CREDIT
i.	If the crystallization of the Rupee liability of an import bill under the Forward Exchange Contract results in early / late delivery, the bank shall recover swap charges and interest, if any.			ID Mumbai shall advise the SWAP charges and interest on a case to case basis. Branches to contact ID Mumbai.
ii.	A commission of 0.15% subject to a minimum of Rs. 1000/- shall be recovered on each foreign currency import bill received under a letter of credit at the time of retirement or crystallization whichever is earlier, where the amount of the bill does not exceed Rs.4.00 crores [or in equivalent foreign currency] Where the amount of the bill exceeds Rs.4.00 crores [or in equivalent foreign currency] a commission of 0.15% on full value of Rs.4.00 crores plus 0.0750% on value above Rs.4.00 crores.
iii.	In case of each Rupee import bill drawn under a letter of credit, commission of 0.25% subject minimum of Rs.1000/- shall be recovered, where the amount of the bill does not exceed equivalent of Rs.4.00 crores. Where the amount of the bill exceeds equivalent of Rs.4.00 crores, commission at 0.25% on full value of Rs.4.00 crores plus 0.125% on value above Rs.4.00 crores shall be recovered.
iv.	If the import bills are not retired within a period of 10 days after the date of receipt of documents in the case of demand bills or on due date in the case of usance bills a late payment commission of 0.15% shall be recovered.
v.	A commission of 0.125% on the bill amount shall be recovered on foreign currency import bills received under Letters of Credit on which no exchange benefit accrues to the opening bank.
vi.	Discrepancy charges in case of non -conforming documents under letters of credit			a.			USD 25/- for a set of discrepant import documents valuing upto and including USD 10,000/- or equivalent
				b.			USD 50/- for a set of discrepant import documents valuing above USD 10,000/- or equivalent
C	COMMISSION ON BILLS [NOT UNDER LETTER OF CREDIT]
i.	On each bill drawn in foreign currency, on which the collecting bank earns exchange benefit, collection commission shall be charged at the rate of 0.25% with a minimum of Rs.250/-
ii.	On each bill drawn in Rupees and on each bill drawn in foreign currency on which the collecting bank does not earn exchange benefit, commission of 0.375% with a minimum of Rs.250/- be charged by the collecting bank.
iii.	In case the value of each import bill received on collection basis exceeds Rs.4.00 crore or equivalent, Authorised Dealers shall charge commission as under:
a.	On the first Rs.4.00 crores			At full rates as in 2C[i] and [ii]
b.	On the amount which is in excess of Rs.4.00 crores			At 50% as in 2C [i] and [ii] for the excess port above Rs.4.00 crores.
D	IMPORT DOCUMENTS RECEIVED DIRECTLY BY IMPORTERS
	In case of documents received by importers directly from the overseas exporters/banks.			0.125% with a minimum of Rs.1,000/- [to be collected at the time of effecting remittance]
E	COUNTERSIGNING / CO-ACCEPTANCE OF IMPORT BILLS
	0.10% per month or part thereof for the tenor of the bills up to Rs.4.00 crores. Beyond Rs.4.00 crores, 0.05% per month for the excess portion plus 0.10% per month for the first Rs.4.00 crores.
F	MISCELLANEOUS INSTRUCTIONS
i.	Sharing of commission: On any letter of credit issued by one Authorised Dealer in Foreign Exchange against the undertaking / counter indemnity of one or more Authorised Dealers, commission shall be shared between them equally
ii.	Booking of forward sale contract in respect of import bills drawn under letter of credit opened by another bank. Where an importer has arranged for fixation of a forward contract with a bank other than the one through whom the letter of credit has been opened, the customer shall be liable to pay LC opening bank 0.15% commission in lieu of exchange in addition to swap cost and interest from date of negotiation till date of credit of proceeds in the bank's nostro account.
iii.	Recovery of commission in lieu of exchange on import bills payments of which are settled out of foreign currency loan arranged abroad, foreign currency accounts and EEFC accounts. Authorised Dealers shall collect additionally 0.125% commission in lieu of exchange in respect of letters of credit opened by them, payments of which are settled out of foreign currency loans arranged abroad or foreign currency accounts [EEFC] account. In case of bills not covered by LCs, 0.125% commission in lieu of exchange shall be collected in addition to collection charges.
iv.	Import bills for collection: In respect of foreign currency collection bills, the collecting bank shall be entitled to exchange and commission. If for any reason the collecting bank is required to forward the documents to another bank which will be required to remit the proceeds to the remitting bank abroad, the former bank shall be entitled to handling charges of flat Rs.500/- and the latter will be entitled to appropriate collection commission and exchange benefit.
3	MERCHANTING TRADE
A	Back-to-back letters of credit will be treated as separate transactions and commission as per 2A (i) shall be charged to the customer.		a. Upto Rs.4.00 crores charges as in 2A(i) (a) b. For above Rs.4.00 crores charges as in 2A(i)(b ).
B	If foreign currency remittances are received in advance from the overseas buyer, the Authorised Dealers may at the specific request of merchanting trade customer hold the foreign currency funds in their Nostro Account without converting the amount into Indian Rupees till the date of payment to the overseas supplier. Authorised Dealer shall not apply buying and selling rates of exchange. Commission at 0.15% shall be charged on each transaction. Authorised Dealers shall not pay interest on such advance remittance or grant Rupee advances against foreign currency funds thus received.
4	CLEAN INSTRUMENTS
A	INWARD REMITTANCES
i.	Application of exchange and interest rates: For the purpose of encashment of TTs/payment of foreign currency Demand Drafts, Mail Transfers, etc., the application of exchange and interest rates shall be us under:
	Type of transaction				Exchange and interest rates applicable
a.	Encashment of TTs/Purchase of MTs/DDs in respect of which cover has been received in Nostro Accounts				Current TT buying rate [No exchange margin or interest to be charged]
b.	Encashment of TTs/Purchase of MTs/DDs in respect of which cover has not been received in Nostro Accounts				TT buying rate plus exchange margin of 0.15%. Interest shall be recovered separately from the customer at domestic commercial rate for a transit period of 15 days.
c.	Encashment of customer's personal cheques, demand drafts, International money orders, bankers pay orders payable abroad.				TT buying rate plus exchange margin of 0.175%. Interest shall be recovered separately for a transit period of 15 days from the customer at domestic commercial rate of interest.
d.	Note: It shall be optional for the encashing bank in India to pay on application or await receipt of cover in respect of Demand Drafts/Mail Transfers/Telegraphic Transfers and pay thereafter. Instruments will be purchased at the Authorised Dealer’s discretion and on specific request from the customer.
ii.	Application of Charges: A commission of Rs. 200/- shall be recovered in respect of each clean payment effected under instructions from a foreign correspondent [inward remittance] Where the inward remittances has to be executed in foreign currency by issuing a demand draft / mail transfer/payment order/telegraphic transfer a commission of 0.10% subject to a minimum of Rs. 100 shall be recovered from the beneficiary/beneficiary's banks as the case may be
B.	CLEAN INSTRUMENTS FOR COLLECTION
	A commission of 0.25% subject to a minimum of Rs.75/- shall be recovered on clean instruments sent for collection abroad
	In respect of foreign currency instruments favouring resident beneficiaries sent for collection within India, charges as applicable for inland transactions be recovered.				Appropriate OBC charges as per Accounts Circular currently in force.
C	CERTIFICATES
	Authorised Dealers to levy Rs.100/- per certificate for issuing bank certificates on security paper / letter heads in respect of payment of clean remittances from abroad and / or for encashment of foreign currency travellers cheques / foreign currency notes.
D	OUTWARD REMITTANCES
	(a) Outward remittances shall be effected at the TT selling rate of the bank ruling on the date of such remittance or at the forward contract rate. (b) On all outward remittances, a commission of 0.15% with a minimum of Rs.100/shall be charged. (c) In respect of part or full advance remittance against imports, authorized Dealers shall recover commission applicable to import bills. Importers may be advised to indicate whether the import bills will be received under LC or on collection basis by Authorised Dealers or directly by importers, and commission shall be recovered at appropriate rates
E.	ISSUE OF FOREIGN CURRENCY TRAVELLERS CHEQUES/ CURRENCY NOTES
	(i) Foreign currency travellers cheques shall be issued as per exchange control regulations at the option of the Authorised Dealer at its selling rate for the travelers cheques ruling on the date of issue. (ii) Where at the request of the beneficiary, foreign currency travellers cheques are issued by an Authorised Dealer against foreign currency remittances received from abroad, the bank shall collect in Indian Rupees a commission of 0.25%. Charges if any of the TC issuing company shall be collected separately.
F.	MISCELLANEOUS INSTRUCTIONS
i.	Payment of a foreign currency draft by the drawee bank by issuing their own draft in the same currency in favour of the beneficiary bank of the former draft with whom the relative foreign currency amount is to be deposited in a FCNR Account. The drawee bank of a foreign currency draft shall pay such draft at the request of the beneficiary bank in case the draft is received for deposit of foreign currency amount with the beneficiary bank in a FCNR account, by issuing their own draft in the same currency in favour of the said beneficiary bank and levy a service charge for the issue of their own draft at the flat rate of Rs.100/- per draft The said drawee bank may also collect any out of pocket expenses incurred by them for issuing their own draft. The said beneficiary bank shall absorb this charge of the said drawee bank and shall not recover it to the debit of the relative FCNR account
ii.	Compensation for delayed payment Authorised Dealers shall compensate the beneficiary of an inward remittance by payment of interest @ 2% over the applicable Savings Bank rate of interest in case the proceeds of the inward remittance are not paid within 10 days from the date of receipt of remittance advice from abroad for remittance up to equivalent Rs.1.00 lakhs, or an intimation not sent to the beneficiary within 3 days from the date receipt of credit advice in respect of remittances exceeding equivalent of Rs.1.00 lakh
iii.	Collection of clean instruments for non - Authorised Dealers In case where an Authorised Dealer undertakes collection of foreign currency clean instruments tendered by a bank who is not an Authorised Dealer received from their nonresident account holders of Indian nationality or origin and also handles remittances from India for such account holders [request routed through their banker] the member bank to share the commission with that bank equally.
iv	Sharing of commission on sale of foreign currency travelers cheques: Authorised Dealers are not permitted to share the commission on sale of travelers cheques with travel agents / others.
v.	EEFC Accounts Where an Authorised Dealer effects outward remittance to the debit of EEFC account of the customer, it shall recover additionally a commission @ 0.125% in lieu of exchange, with a minimum ofRs.250/-. Where proceeds of inward remittance are credited to EEFC account of the customer, the Authorised Dealer shall recover additionally a commission of 0.125% in lieu of exchange, with a minimum of Rs. 250/-

5.	GUARANTEES
	These Rules are applicable to guarantees connected with import and export trade, other foreign exchange transactions and deemed exports as defined by Reserve Bank of India/ EXIM policy.
A.	Charges: i. The charges shall be recovered for the guarantees as under: The scale of charges shall be collected by banks on the specified period of liability of the guarantees. The specified period of liability shall mean the actual validity period of the guarantee plus the additional period during which claims can be made on the bank under the guarantee At our normal rate for amount upto Rs.4.00 crores and for the portion exceeding Rs.4.00 crores 50% of our normal rate. Minimum Rs.500/ ii. In case of guarantee [other than those issued for project exports] issued against 100% counter guarantees of the Government of India, and in case of guarantees issued against 100% cash deposit commission be charged at 0.06% with a minimum of Rs.500/- irrespective of the amount of the guarantee.
B	TYPES OF GUARANTEES AND CHARGES
i.	Guarantees in favour of shipping companies / agencies for clearance of goods pending production of bill of lading
a.	Relating to imports under LCs opened by the guarantor banks themselves	Flat Rs.600/- per guarantee
b.	Others not covered by [a] above	0.25% at the time of issue of guarantee. If the guarantee remains current beyond 3 months additional commission of 0.15% per month or part thereof as long as the guarantee remains current thereafter
ii.	Export performance guarantees for project Exports which include: a) Bid Bonds b) Bonds for earnest money c) Guarantees for advance payments made by foreign buyers to Indian Exporters/ contractors	A. In the case of guarantees covered by ECGC counter - guarantees, banks shall collect commission at 0.45% where ECGC counter guarantee cover is 75% and 0.35% where ECGC counter guarantee cover is 90%. In addition the ECGC premium at the applicable rates may be collected and remitted to the ECGC. B. In case of guarantees issued against 100% counter guarantees of the Government of India, commission shall be charged at the rate of 0.30% per annum. C. In case of guarantees issued against cash deposit to the extent of banks liabilities commission shall be charged at the rate of 0.10% pa. with a minimum of Rs.200/- and maximum of Rs.1,000/- D. In case of performance guarantees which are not covered by cash deposits or ECGC/Government of India counter guarantees commission shall be charged at the rate of 2.5% p.a. E. Commission for issuing bid-bonds for suppliers to projects carried out abroad shall be recovered to the extent of 25% thereof for the full period of validity of the bonds at the time of issue. If the bid materializes the balance 75% of the commission shall be recovered. However, if the bid gets frustrated there will not be refund of that part of the commission collected
iii.	Export performance guarantees, Bid-bonds etc. [other than for Project Exports] and export performance guarantees covering export obligations in terms of import trade control regulations and export performance guarantees / bid bonds connected with deemed exports	0.085% per month for the specified period of liability. Where the guarantee period is less than three months, commission recoverable will be 0.25% of the guaranteed amount. In case of early redemption of the guarantee a minimum of 50% of the commission for the unexpired period (i.e from the date of redemption to the expiry date) shall be refunded. Commission for issuing bid bonds for supplies connected with deemed exports / direct exports other than project exports shall be recovered to the extent of 25% thereof for the full validity of the bonds at the time of issue. If the bid materializes, the balance 75% of the commission shall be recovered However, if the bid gets frustrated there will not be refund of the part of the commission collected.
iv.	Deferred payment guarantees covering imports of goods into India / repayment of foreign currency loans	0.50% per quarter or part thereof for the specified period of liability calculated on the amount of liability under such guarantees at the beginning of every quarter.
v.	All other guarantees / Buyers Credit/ Suppliers Credit/ ECB	0.15% per month for the specified period of liability. Where the guarantee period is less than two months, commission recoverable shall be 0.25%. In case of early redemption 50% of the commission be refunded for the unexpired period (i.e. From the date of redemption to the expiry date of. the guarantee), provided unexpired period shall not be less than 3 months and refundable amount exceeds Rs.200/- The minimum charge for any guarantee shall be Rs.500/-unless a lower charge is otherwise specified
6.	FORWARD EXCHANGE CONTRACTS
	CHARGES On each sale of / or purchase contract booked, charges shall be recovered from the customer at a flat rate of Rs.500/- per contract. No charge in respect of exchange contracts booked on behalf of NRI customers.
7.	PROCESSING CHARGES
A.	Export Credit / Import Credit / Funded / Non-Funded	0.25% p.a on the total export/ import credit limits sanctioned with a maximum of Rs. 5,00,000/-
	In case domestic credit limits are sanctioned along with the forex limits then processing charges should be calculated separately at the rates prescribed on the forex credit limits and the domestic credit limits. The maximum processing charges to be collected shall not exceed Rs.5,00,000/- for Forex limits, in addition to appropriate processing charges for domestic credit facilities.

XVIII. Credit information to customers -- Rs.50/- (Excluding Service Tax)