Regd & Corp. Office, ING Vysya House Reference: 046/023 #22, MG Road, Bengaluru Date: 26/08/2013 HUMAN RESOURCES DEPARTMENT

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1 ING Vysya Bank Limited CIR./GEN. No.214 Regd & Corp. Office, ING Vysya House Reference: 046/023 #22, MG Road, Bengaluru Date: 26/08/2013 HUMAN RESOURCES DEPARTMENT CIRCULAR TO ALL BRANCHES/OFFICES Sub: Memorandum of Understanding reached on 23/08/2013 with the All India ING Vysya Bank Officers Association on Charter of Demands * * * * * * * Highlights 1) Improvement in Loan Benefits and other Allowances 2) Performance Management System Revision Effective date As indicated in the Circular Reference Circular No.291 Ref.No.46/47 Dated 26/11/2007 Contact for Balasubrahmanya K.M, Process Head-IR, Mob: clarification 72551, Landline No Extn: 2003 (D) We are glad to inform you that a Memorandum of Understanding on Charter of Demands was signed on 23 rd August 2013 between the Representatives of the Management and Representatives of All India ING Vysya Bank Officers Association. Improvements have been made in the existing benefits as a welfare measure. All Officers are requested to put their sincere efforts in achieving the business growth as per the strategic business plan and stay focused on customer service in the present competitive environment. We reproduce in the enclosure the contents of the Memorandum of Understanding along with Annexures. All reimbursement claims and loan applications have to be uploaded in the HCM as being done at present. With greetings (Nagaraj B) Head Employee Relations Memorandum of Understanding ~ 23/08/2013 Page 1 of 47

2 INDEX SL.NO. PARTICULARS 1. LOANS A Car Loan 3 B Two Wheeler Loan 4 C Computer Loan 5 D Housing Loans I First Housing Loan 6 II Additional Finance for Housing 13 III Second Housing Loan 13 IV Substitution of Title Deeds 15 E Miscellaneous Loan 16 F Loans Against NSC s/ LIC Policies / Gold Ornaments 18 G Festival Advance REIMBURSEMENTS A Subsidised Canteen Facility 21 B Reimbursement of Cost of Newspaper and Periodicals 21 C Educational Expenses / Tuition Fee 21 D Lunch Charges 22 E Lease Rent Reimbursement 22 F Conveyance Reimbursement F.1 Officers who are owning Vehicle 24 F.2 Officers who are not owning Vehicle 24 G Vehicle Maintenance 25 H Upcountry Allowance at upcountry Branches 25 I Home Travel Allowance 26 J Boarding Expenses on Transfer 26 K Hardship Allowance 26 L Retirement Award 27 M Payment of lump sum Compensation amount to Officers 27 N Brief Case 27 O Diem Allowance 28 P Compensation for Officers working on Holidays 28 Q Financial Assistance to Officers who are on Loss of Pay on Account of Major Ailments OTHER ISSUES A. Performance Management System 28 B. Co-operation of Association in Business Process Improvements & Other exercises 29 C. Selling of Bank's Products 29 D. Co-operation of Officers in implementation of Whistle Blower Policy 29 E. Involvement in ensuring conformity with compliance issues of all types (Statutory, Regulatory, Procedural etc.,) 30 F. Co-operation of Officers in the Investigation process 30 Duration of the Understanding 30 ANNEXURES Memorandum of Understanding ~ 23/08/2013 Page 2 of 47

3 1. LOANS A. CAR LOAN It is agreed to extend Car Loan to all the Officers on the following terms and conditions: a. Purpose: This loan is available for the purpose of purchase of either new or old car. b. Eligibility: 1. The loan is available to such of those Officers who have put in a minimum of 5 years of service in the Bank including probationary period. 2. This Loan is available to the Officers twice in their entire service. 3. The loan is available to such of those Officers whose salary deductions (including the proposed loan instalment) do not exceed 70% of his gross salary i.e.30% of the gross salary should be the take home pay. c. Quantum of Loan: 1. New vehicle: Officers in Scale I & II: Officers in Scale III: 2. Second Hand Vehicle: Officers in Scale I & II: Officers in Scale III: 90% of the cost of invoice value including accessories with a maximum of Rs. 4,25,000/- 90% of the cost of invoice value including accessories with a maximum of Rs. 5,50,000/- 80% of the market value as certified by Recognized / Registered / Approved Valuer or Rs. 3,50,000/- whichever is lower. 80% of the market value as certified by Recognized / Registered / Approved Valuer or Rs. 4,00,000/- whichever is lower. Vehicle should not be more than five years old from the date of first purchase. d. Rate of Interest: 8.50% Simple Rate of Interest Per Annum Memorandum of Understanding ~ 23/08/2013 Page 3 of 47

4 e. Repayment Period: Loan shall be repaid in 120/150 Monthly Equated Instalments (Covering Both Principal and Interest) or number of months of leftover service, whichever is earlier by way of monthly deductions from salary. The deductions shall be effected from the month following the month in which the loan is availed / disbursed. f. Other Conditions 1. Officers who have already availed Two-wheeler loan shall not be eligible for this loan and they shall be eligible for car loan only after liquidating two wheeler loan already availed. 2. Officers who have already availed Car Loan shall be eligible for second time subject to liquidating already availed car loan and also after completion of five years from the date of last availment. 3. The vehicle is to be covered by comprehensive insurance policy for the full value with bank s clause. Hypothecate the vehicle to the bank by registering the lien (HP clause) in favour of the bank in the RC Book through the RTO authorities. 4. The payment will be made directly to the Vendor after collecting the Margin. 5. Compliance with other terms and conditions of sanction as applicable to four wheeler loans. g. Date of effect: This will come into force with effect from the date of this Memorandum of Understanding (MOU). B. TWO WHEELER LOAN It is agreed to grant Two Wheeler loan with the following terms and conditions: - a. Purpose: Loan will be available for the purchase of two wheelers either new or old vehicles. b. Eligibility: 1. All full time confirmed Officers with 1 year of service, are eligible for the loan. 2. Vehicle loan is available to officers five times during the entire service of the Officer including the previous availment. Memorandum of Understanding ~ 23/08/2013 Page 4 of 47

5 3. The loan is available to such of those Officers whose salary deductions (including the proposed loan instalments) do not exceed 75% of his gross salary, i.e., 25% of his gross salary should be the take home pay. 4. Officers who have already availed car loan shall not be eligible for this loan and they shall be eligible for two wheeler loan only after liquidating car loan already availed. c. Quantum of Loan In case of new vehicle the amount of loan is restricted to 90% of the Invoice value, including all accessories. In case of old vehicle, the amount of loan is restricted to Rs. 25,000/- (Rupees Twenty Five Thousand Only) or 75% of the market value whichever is lower subject to the condition that the vehicle purchased is not more than 3 years old from the date of first purchase. However, the market value should be supported by a certificate issued by a Recognized Mechanic / Authorised Vehicle Dealer. The payment will be made directly to the Vendor after collecting the margin. d. Rate of Interest: 7% simple interest per annum. e. Repayment : Loan shall be repaid in 72/84 Equated monthly instalments (Covering both Principal and Interest) by way of deductions from salary. The deductions shall be effected from the month following the month in which the loan is availed. Officers who have availed the loan shall be eligible for the 2 nd time after completion of 72/84 months of availment of the first loan or after the earlier loan is fully recovered / repaid. However, Officers can pre-close the loan after 36 / 42 months. In such case the Officers will be sanctioned loan by the competent authority though 72/84 months have not been completed since the availment of the earlier loan. Similar procedure is to be adopted for availing loan for the 3 rd, 4 th and 5 th time. f. Date of effect: This shall be with effect from the date of this MOU. a. Purpose: C. COMPUTER LOAN: It is agreed to provide loan for purchase of new computer / laptop / tablet to Officers to enable them to improve their skills in operating the computers. Memorandum of Understanding ~ 23/08/2013 Page 5 of 47

6 b. Quantum of Loan: Rs. 50,000/- (Rupees Fifty Thousand Only) or 90% of the Invoice value whichever is lower. c. Rate of Interest: 8.50% Simple Rate of interest Per Annum. d. Repayment period 48/60 Equated Monthly instalments (Covering both Principal and Interest) by way of deductions from monthly salary. e. Eligibility: Minimum service of 2 years f. Terms & Conditions: 1. Computer loan shall be granted to an officer whose salary deductions including the proposed loan instalment do not exceed 75% of his gross salary i.e. 25% of his gross salary should be his take home salary. 2. This loan is available twice in their entire service with a gap of four years from the date of first availment. 3. The payment will be made directly to the vendor after collecting the margin amount. 4. The cost of computer includes cost of operating system, software, modem, printer, UPS, speakers and other required accessories, Computer table & Chair. 5. The other terms and conditions normally applicable to such loans would apply. Date of effect : This shall be with effect from the date of this MOU. I. FIRST HOUSING LOAN D. HOUSING LOANS It is agreed to extend the Housing loan to Officers and the details are as under: 1. Quantum of Housing Loan: 1.1 Officers: 85 months gross salary or Rs lakhs (Rupees Twenty Four lakhs Only) whichever is lower. Memorandum of Understanding ~ 23/08/2013 Page 6 of 47

7 1.2 Spouse: Where the spouse of an officer is also working in our Bank, only one loan will be granted to either of them. However the quantum of loan would be 1.5 times of average of both loans put together as per their eligibility and the loan accounts would be maintained in proportion to their eligibility. 2. Margin: Margin will be 15%. For the purpose of calculating margin, cost of land, registration charges, stamp duty and any other taxes imposed by the Government shall be taken into account. 3. Rate of Interest: 6.50% simple interest per annum upto Rs.6,00,000/- 8.25% simple interest per annum for next Rs.18,00,000/- Spouse who is an Officer 6.50% simple interest per annum upto Rs. 6,00,000/- 8.25% simple interest per annum on the entire balance of over and above Rs. 6,00,000/- Interest will be charged from the date of availment of loan. Amount of interest will be calculated on the balance outstanding at the end of each month. 4. Repayment Period: Housing loan shall be recoverable by way of salary deduction in maximum of 25 years or balance of service left whichever is lesser. During the first 200 months principal will be recovered and during the subsequent 100 months interest will be recovered. Where the period of service is less than 25 years, the recovery of installments towards principal and interest shall be in the same proportion. The principal amount attracting higher rate of interest, shall be deducted first through instalments. The date of payment of salary shall be taken as the date of recovery of instalments for the purpose of calculation of interest. Where a loan has been sanctioned to a spouse working in our bank, and in case of unfortunate death of one of the co-borrowers, the proportionate entitlement of the deceased employee along with interest will be adjusted out of the Additional death relief and the balance outstanding would be recovered from the surviving borrower. 5. Date of effect: 1. Management also agreed to consider the enhanced limits as a special case for all the applicants whose sanctions are pending and also where Memorandum of Understanding ~ 23/08/2013 Page 7 of 47

8 6. Eligibility the loans have been sanctioned on or after 01/11/2011 and the last instalment not drawn, subject to original cost/estimate being more than previous eligible amount. In case of purchase of House or Flat, if the original cost is higher than the loan sanctioned on or after 01/11/2011 the same shall also be considered, which may be entirely on production of documentary evidence of borrowings. However while arriving at the higher cost incurred, Non-refundable Provident Fund Withdrawal availed if any, would be accounted for and to that extent, eligible additional loan amount will be reduced. 2. Officers who have already pre-closed as on the date of this MOU can avail Housing Loan as a one time measure ie., the existing house has been already disposed and no house is in his / her name. it is made clear that it is a one time measure as on the date of this MOU and shall not apply to future cases. In all other cases enhanced limits, revised rate of interest will be effective from the date of this MOU. An applicant should have put in a minimum of 5 years continuous service in our Bank inclusive of Probationary period. The loan is available to such of those Officers whose salary deductions (including the proposed loan instalments) do not exceed 75% of his gross salary, i.e. 25% of his gross salary should be the take home pay. Loans may be granted by the Bank at its discretion, to its officers in the manner and for the purpose provided for under this scheme. 7. Other guidelines In case of purchase of house / readymade flat, the repayment of loan shall start immediately from the following month of the release of the loan. In case of construction of house / flat, the repayment shall start from the 30 th month of the withdrawal of FIRST instalment OR immediately after completion of the house whichever is earlier. Officers who are under suspension are not eligible for availment of housing loan. In case of officers who have already availed housing loan and kept under suspension subsequently, the instalments shall be recovered from the subsistence allowance payable to them. In case, the loan granted is for purchase of a site and if the construction is not commenced within 18 months from the date of availment of loan for purchase of site, the following steps are to be taken: a. The entire amount shall be recalled along with IVBR + 2% Interest prevailing as on the date of release of loan amount for purchase of site. b. If the employee is not forthcoming, salary deductions should be effected to ensure recovery of entire loan amount along with IVBR + 2% interest till the date of closure. In case the construction is Memorandum of Understanding ~ 23/08/2013 Page 8 of 47

9 commenced within 18 months from the date of availing the loan for purchase of a site, the repayment shall commence from the 30 th month from the date of availment of loan for purchase of site OR immediately after completion of the construction of the house, whichever is earlier. In case of disablement of an Officer while in service and if he/she ceases to be in the employment on account of disablement and if the housing loan is outstanding, the entire loan will be adjusted out of the terminal benefits. (**) CRLO would be recovering the other charges such as Property insurance premium etc., and any other charges immediately on receiving the information from HRD, Corporate Office, and debit the same to the loan account of the Officer concerned, maintained at CRLO, Bangalore. (** However this would be referred to Trustees of MCDRF Trust, to address the concern of the disabled officers along with the cases of deceased officers.) 8. Disbursement of Loan: The Officer has to meet the margin of 15% first and also the amount over and above the sanctioned limit should be invested by the applicant before disbursement of loan. Where it is purchase of a ready made house/flat the amount sanctioned along with margin amount shall be released by way of Pay Order / Demand Draft in favour of the vendor subject to the other terms & conditions of sanction at the time of registration of sale deed. In case of construction of a house the sanctioned amount shall be released as under: At the time of foundation work of the building, the first instalment of 40% of the loan, subject to a maximum of 90% of the value of the site and the actual cost of the construction of the foundation work thereon, shall be released to the Officer on his/her mortgaging the site along with the house to be constructed thereon in favour of the Bank after complying with all the other terms & conditions of the sanction. The next 40% of the sanctioned loan shall be released to the Officer when construction of the building reaches its plinth level. The balance of 20% of the sanctioned loan amount shall be released at once when the construction of the house has reached the stage of completion, provided the Bank is satisfied that the development of the area in which the house is built is complete in respect of the amenities such as water supply, drainage and sewage. Staff Loans - CRLO should obtain a certificate at every stage from the Registered / Approved Engineer / Valuer on the progress of the construction before releasing the instalments as mentioned in the above paragraphs Memorandum of Understanding ~ 23/08/2013 Page 9 of 47

10 However, before releasing the last instalment of 20% Branch Head shall conduct final inspection of the property and shall certify the end use of release of instalments. Basing on the recommendations of the Branch Head, Staff Loans - CRLO will release the final instalments. In case of construction of flat, the amounts shall be released by way of Pay Order / Demand Draft Favouring builders / contractors in stages as per the agreement entered into between the Officer and the builder / contractor. In case where the Officer has acquired rights to construct First OR Second floor on the existing property, then the loan would be released in the following manner: a. 40% of the loan amount shall be released for construction of walls and roof. b. 50% of the loan shall be released for plastering, sanitary, plumbing and electrical work etc. c. The balance shall be released for painting and for other finishing works. 9. For Purchase of Site: 30% of the eligible loan amount OR the actual cost of site whichever is less. The cost of Stamp Paper and Registration charges shall be borne by the applicant. In case where the Officer has already been sanctioned 30% of the loan amount for purchase of site, the balance amount shall be released in stages as done for construction of house. In case of purchase of mortgaged property, the amount due by the vendor to the mortgagee shall be paid directly to him / them by way of Demand Draft /Pay Order at the time of registration of the property and mortgagee shall execute the release deed and the balance amount shall be paid to vendor and regular sale deed should be executed. Both the transactions should take place simultaneously on the same day. The Bank reserves its right to change the mode of disbursement, if circumstances of any loan warrant. The loan shall be availed within 6 months from the date of sanction as otherwise the sanction gets lapsed. However, the same can be revalidated only if the reason(s) for non-availment of loan is justified. 10. Security The property should be mortgaged to the Bank by way of deposit of original title deeds as security. The Mortgage should be created at the branch as per the guidelines issued by the Bank from time to time. Memorandum of Understanding ~ 23/08/2013 Page 10 of 47

11 The property should be insured by the Officer for its market value against floods, fire, earthquake, strike, riots, civil commotion risk at the cost of the Officer and the policy should be made out in the name of the Officer and the same shall be lodged with the Bank. In the case of construction of house, the building materials on the site shall also be insured against fire, risk/theft at all times and against earthquake. All the Officers who have availed housing loan will be covered under the Additional Death Relief Scheme of the ING Vysya Bank Employees Medical- Cum-Death Relief Fund Trust compulsorily and shall contribute such donations as prescribed by the trust and as per the sanction communication. 11. General Terms & Conditions Application for housing loan should be updated in HCM. Copies of the title deeds / documents should be sent to Staff Loans - CRLO. For Construction of a house on the site held in the name of the spouse, the documents should be executed jointly in favour of the bank. Officer should give an undertaking not to sell and / or transfer and / or deal with and / or let out or lease without prior permission from the competent authority of the Bank. An irrevocable letter should be given by the Officer, authorizing the bank to deduct the housing loan instalment every month out of his / her salary till the entire loan inclusive of interest is repaid. An Officer can avail housing loan only once during the entire service. However, where a loan taken has not been utilised for genuine reasons, the Bank shall consider granting of a fresh loan subject to refund of earlier loan inclusive of interest. Officer should give an undertaking letter to the Bank stating that he will pay the taxes & insurance regularly and maintain the property in good condition, till the loan is cleared / repaid. Officer shall sign, execute and register, wherever necessary such deed, documents, agreements, conveyance and assurances as the Bank may require in connection with the sanction of loan. The Bank will not bear any expenditure relating to scrutiny of documents by the Bank s Legal Advisor or for Registration of Documents, etc. Officer should give an irrevocable letter in the prescribed format addressed to the Trustees of PF, Gratuity & Pension, authorizing them to adjust the amount of PF, Gratuity & Pension or commuted Pension towards the dues of housing loan, if any. Memorandum of Understanding ~ 23/08/2013 Page 11 of 47

12 Officer should submit a Certificate (Katha / Patta / Phani) from the appropriate revenue authorities stating that the site/house/flat is in the name of the Officer after disbursement of loan. The main documents and two or more link documents adding upto a minimum of 15 years, which are in vernacular language, should be translated into English by a Legal Adviser/Official of our Bank duly certifying the correctness of the translation, without which the application will not be considered. However in the interest of the borrower it is advisable to get all other vernacular language documents which are beyond 15 years certified by the local legal advisor of the bank to ensure clear title of the property. The CRLO would furnish an annual statement of accounts every year for the purposes of Income Tax. The applicant should submit an undertaking letter authorising the Subregistrar to send the sale deed after registration directly to the Bank in case of purchase of house/flat/site. A letter from the employee indicating that he/she will handover the Sale Deed after registration to Bank, if the same is received from the Sub-Registrar s office directly. The receipt issued by the Sub-registrar shall be lodged with the Bank. An undertaking letter shall also be given by the applicant stating that he/she will submit NIL ENCUMBERANCE CERTIFICATE (SEARCH REPORT by the Legal Adviser or concerned Registration Authorities in case where issue of EC is not in practice) and tax paid receipt once in THREE years. Employee has to submit all the ORIGINAL DOCUMENTS as per the housing loan sanction. The Bank has the authority to frame such rules and regulations as may be necessary for the proper administration, disbursement and recovery of the loans under the scheme, which shall be binding on all the officers taking such loans. The Management of the Bank reserves all rights to withdraw or suspend or abolish or amend the rules without assigning reasons, whatsoever. Where interpretation of the rules / provisions give rise to any doubt/clarification/ambiguity, the decision of the competent authority shall be final and binding. The employee has to update application in HCM and submit relevant documents / Legal Opinion (from Bank s Panel advocate) for availing loan, besides ensuring clear and marketable title to the property. Where an Officer is compulsorily retired / dismissed / terminated, the outstanding Housing Loan Amount after adjusting the proceeds of terminal benefits is payable to him / her will attract interest rate as applicable to Memorandum of Understanding ~ 23/08/2013 Page 12 of 47

13 general public and it is the responsibility of such ex-officer to adjust the full loan amount and take delivery of title deeds. II. ADDITIONAL FINANCE FOR HOUSING It is agreed to permit such of those Officers, who have already availed housing loan in the Bank to avail additional housing loan from other financial institutions like, Life Insurance Corporation, HUDCO, HDFC and such other accepted institutions, subject to satisfying repaying capacity and margin on the security. The management will be agreeable for creating second charge/ pari-passu charge and for deduction of instalments from the salary. It is also agreed that additional loan to be availed by the officers shall be limited to 50% of the Housing loan eligibility in the ING Vysya Bank. While applying for the loan, the Officer shall give a declaration confirming that he has not availed such loan / facility earlier. The loan is available to such of those officers whose salary deductions (including the proposed loan instalments) do not exceed 80% of his gross salary, i.e. 20% of his gross salary should be the take home pay, provided the employee gives an undertaking that his take home pay would be maintained at the level of 25% of his gross salary, when the deduction of such instalments commences. Any violation in this regard will be viewed seriously. It is also agreed that as a one-time measure, No objection Certificate will be given to an employee who is willing to transfer his outstanding balance from one institution to another institution. The No objection Certificate will be issued only to the extent of balance outstanding inclusive of interest. III. SECOND HOUSING LOAN 1. Quantum of Loan: Rs. 8,00,000/- (Rupees Eight Lakhs Only) 2. Date of effect This will come into force from the date of this MOU. However in the case of Second Housing Loans sanctioned on or after 01/11/2011 they will be eligible for difference amount under this head, subject to the condition that the estimate already submitted by them to the bank while applying for the earlier second housing loan was higher and within the additional amount now applied for. 3. Rate of Interest: 8.25% simple interest per annum. 4. Repayment of Loan: The loan along with interest is repayable in a period of 10 years. The principal amount will be recovered in the first 7 years and the interest in the next 3 years in addition to the housing loan instalments, availed earlier. If the number of years of actual service is less than 10 years, the recovery of Memorandum of Understanding ~ 23/08/2013 Page 13 of 47

14 the principal and interest shall be done in the same proportion i.e., 7:3. This facility can be availed only once during the service period. 5. Purpose of loan: The second housing loan shall be available for the Officers for the purpose of alterations, additions, extension, repairs, bore wells, compound walls, etc., 6. Eligibility: a. After 5 years from the date of registration in respect of ready built house/flat, purchased. b. After 6 years from the date of sanctioning of housing loan in respect of construction of house/flat. c. In case, the Officer had availed the said loan once he / she is not eligible for the second time. d. While applying for the loan, the Officer shall give a declaration confirming that he has not availed such loan / facility earlier. e. The loan is available to such of those Officers whose salary deductions (including the proposed loan instalments) do not exceed 80% of his gross salary, i.e. 20% of his gross salary should be the take home pay, provided the Officer gives an undertaking that his take home pay would be maintained at the level of 25% of his gross salary, when the deduction of such installment commences. Any violation in this regard will be viewed seriously. f. Estimation shall be submitted with the certification of an approved Architect/Engineer. g. All the Officers who are availing second housing loan will be covered under the Additional Death Relief Scheme of ING Vysya Bank Employees Medical-Cum-Death Relief Fund Trust compulsorily and shall contribute such donations as prescribed by the trust / sanction communication. 7. Documentary Evidence The following documents are to be submitted to sanctioning authority. Request letter where in he should also declare about non-availment of second Housing Loan earlier. Latest pay slip Estimate prepared by Registered / Approved Engineer / Architect of State or Central Government or Approved Engineer of the Bank. Approved plan in case of extensions. For the purpose of estimation, cost towards wardrobe, cupboards, loft shutters will be included. Memorandum of Understanding ~ 23/08/2013 Page 14 of 47

15 IV. SUBSTITUTION OF TITLE DEEDS: Scheme I: An Officer shall be eligible to dispose off the house / flat for which he had already drawn the housing loan only after completion of 5 years of withdrawal of full loan which shall be only with the prior approval of the management and only once during entire service. The following are the terms and conditions in this regard: 1. An Officer shall be eligible for this facility only after 5 years from the date of withdrawal of the full housing loan. 2. The outstanding liability in the existing loan account will be permitted to be closed as per original payment schedule. 3. The entire sale proceeds of the house / flat should be kept in Savings Bank deposit with our Bank, and withdrawal shall be allowed by written permission of the bank. 4. Officers should be able to acquire alternate property within a maximum period of 12 months. 5. The value of the substituted property shall not be less than the value of original property. Scheme II: In genuine cases where the Officer desires to dispose off his house/flat for which he had already drawn the housing loan, substitution of the title deeds will be permitted only after completion of 10 years from the date of availing the housing loan in full or repayment of 50% of the principal amount which ever is later, and it shall be only with prior approval of the Management and that too only once during the entire service. Such of those Officers who are availing this facility are entitled for a fresh housing loan. The eligible quantum of loan would be the difference of the housing loan sanctioned earlier and the quantum of housing loan available at present. The instalments would be recovered during the remaining period of service in the ratio of 2:1. For example, if an officer had availed his housing loan in the year 2011 and the quantum was Rs.13,00,000/-, he is entitled for an additional amount of Rs. 11,00,000/- (i.e. Rs. 24,00,000/- ( ) Rs. 13,00,000/- = Rs. 11,00,000/-). The rate of interest would be 8.25% simple interest per annum on the entire amount to be sanctioned at present. The following are the terms and conditions in this regard: 1. An Officer shall be eligible for the facility only after 10 years from the date of availing the housing loan in full or repayment of 50% of the principal amount which ever is later. 2. The outstanding liability in the existing loan account including interest should be closed from the sale proceeds. 3. The balance sale proceeds of the House/Flat should be kept in savings bank deposit with our Bank branch, where the property proposed to be purchased is situated and withdrawal shall be allowed by written permission of the sanctioning authority. Memorandum of Understanding ~ 23/08/2013 Page 15 of 47

16 4. The loan is available to such of those Officers whose salary deductions (including the proposed loan instalments) do not exceed 75% of his gross salary, i.e., 25% of his gross salary should be the take home pay. 5. It is also agreed to provide substitution of title deeds for the purpose of construction of house also, provided an employee owns a site in his name / name of the spouse. The release of instalments shall be in the ratio of 40:40:20 as being followed in the case of loan released for construction of house. For Construction of a house on the site held in the name of the spouse, the documents should be executed jointly in favour of the bank. 6. Staff Loans - CRLO should obtain a certificate at every stage from the Registered / Approved Engineer / Valuer on the progress of the construction before releasing the instalments as mentioned in the above paragraph. 7. However, before releasing the last instalment of 20% Branch Head shall conduct final inspection of the property and shall certify the end use of loan amount. 8. Officers should be able to acquire / construct alternate property within a maximum period of 12 months. 9. The value of the substituted property shall be not less than the value of original property. 10. All the Officers who are availing loan towards substitution of title deeds will be covered under the Additional Death Relief Scheme of the ING Vysya Bank Employees Medical-Cum-Death Relief Fund Trust compulsorily and shall contribute such donations as prescribed by the trust / sanction communication. OTHER CONDITIONS COMMON FOR ALL HOUSING LOAN SCHEMES FOR OFFICERS. For the purpose of estimate, cost towards wardrobes, cupboards, lintel (loft shutters), shall be included. Officers are entitled to get housing loan, additional housing loan, second housing loan, for the purpose of repayment of loan availed from other institutions, for housing purposes only. All other existing terms and conditions except to the extent modified in this understanding shall continue. E. MISCELLANEOUS LOAN It is agreed to grant miscellaneous loan for the purposes as indicated herein below: a. Purpose: Miscellaneous loan shall be available for any of the following purposes: - 1. For marriage of self or to perform the marriage of sons and daughters or dependent sisters of the Officer. Memorandum of Understanding ~ 23/08/2013 Page 16 of 47

17 2. To enable payment of rent deposit or advance for occupation by an Officer for any rented building. 3. To undertake minor repairs or renovations to the house owned by an Officer against estimation. 4. To meet the expenditure regarding educational facilities like payment of capitation fee, admission fee and other school or college fees, purchase of books and stationery and other items in respect of self / dependent sons / daughters / wife / husband. 5. To meet expenditure in connection with any kind of illness not covered under the provisions of Bipartite Settlement / reimbursements. 6. To perform obsequies of parents or spouse or dependent sons or dependent daughters or dependent sisters of an employee. 7. For purchase of any consumer articles. 8. For purchase of site/meeting margin money towards housing loan. 9. Religious ceremonies/functions 10. To purchase furniture b. Eligibility: An Officer, who is confirmed and has put in minimum of two years of service from the date of joining the Bank, is eligible for loan. The probationary period would also reckon for qualifying service. c. Quantum It has been agreed to sanction 10 months salary subject to a maximum of Rs. 3,25,000/- (Rupees Three Lakh Twenty Five Thousand only). Salary for the purpose of loan shall be Basic Pay + Dearness allowance. d. Rate of Interest: 8.50% simple rate of interest per annum e. Repayment Period: 48 / 60 equated monthly instalments (Covering both Principal and Interest) by way of deductions from salary or left over service whichever is earlier. f. Terms & Conditions : 1. Miscellaneous loan for any of the above said purposes shall be granted to an Officer whose salary deductions including the proposed loan instalment do not exceed 75% of his gross salary, i.e., 25% of his gross salary should be his take home salary. Memorandum of Understanding ~ 23/08/2013 Page 17 of 47

18 2. An Officer who is confirmed and has put in a minimum of 2 years of service from the date of joining the bank may avail the loan with the surety of a co-employee who has put in a minimum of 3 years service in the bank. No surety is required for an Officer who has put in more than 5 years of service in the bank. An Officer, who stands, as surety for another Officer, is also eligible for availing miscellaneous loan as per the norms. An Officer shall not stand as surety for more than one Officer. 3. An Officer who avails miscellaneous loan will qualify to apply for a fresh miscellaneous loan only after completion of the 48 / 60 instalments as the case may be and not earlier. However, this requirement may be relaxed for an Officer who has repaid 50% of the original miscellaneous loan in the normal course, so that he may be eligible for a fresh loan. However in genuine cases like education, marriage and payment of rental advance, the same would be relaxed subject to production of proof of documents. 4. Date of effect : This shall be with effect from the date of this MOU. As a one-time measure loan availed after 01/11/2011 would be permitted to be pre-closed to avail the revised loan as per the understanding. However the existing loan should be closed before applying for the new loan. F. LOANS AGAINST NSC SECURITIES / LIC POLICIES / GOLD ORNAMENTS: a. Quantum of Loan NSCs - LIC Policies - Gold Ornaments - Upto 90% of the face value with a maximum of Rs. 2,00,000/- Upto 90% of the surrender value with a maximum of Rs. 2,00,000/- 75% of the Market value subject to a maximum of Rs.2,00,000/- b. Type of Securities NSCs, LIC Policies and Gold Ornaments as per Bank s norms c. Margin: i. NSC s % ii. LIC Policies % iii. Gold Ornaments 25% Memorandum of Understanding ~ 23/08/2013 Page 18 of 47

19 d. Rate of Interest 8.50% Simple Rate of Interest per annum. e. Terms & Conditions 1. The loan is available to such of those Officers whose salary deductions (including the proposed loan instalments) do not exceed 75% of his gross salary, i.e., 25% of his gross salary should be the take home pay. 2. The total loan component of an Officer under this head (Loans Against NSC Securities / LIC Policies / Gold Ornaments) shall not exceed Rs. 2,00,000/- at any point of time. 3. The gold ornaments offered to the bank by way of pledge / security shall belong to the Officer and a declaration to this effect shall be given by the Officer. 4. Purpose of Loan i. For usual family expenses ii. iii. Medical Expenditure of self and dependants involving heavy expenditure on account of major surgery etc. Expenditure towards education of children for professional courses 5. An Officer who has already availed this loan and is desirous of availing again shall apply only after completion of original repayment schedule. 6. In respect of loans where the amount is overdue for more than six months, the same shall be recovered out of salary besides recovering the balance amount in monthly instalments out of salary till the closure of loan accounts. f. Period of Repayment Type of Security NSCs less than 3 years maturity NSCs above 3 years Maturity LIC Policies Gold Ornaments Repayment of Principal At the time of Maturity 36 equal monthly Instalments 36 equal monthly Instalments 36 equal monthly Instalments Payment of Interest Monthly deduction through Salary Monthly deduction through Salary Monthly deduction through Salary Monthly deduction through Salary Date of Effect : The revised amount will be effective from the date of this MOU. Memorandum of Understanding ~ 23/08/2013 Page 19 of 47

20 GUIDELINES FOR ALL STAFF LOANS: 1. Penal rate at prevailing IVBR + 2% rate will be charged in case of willful default in payment of instalments or violation of any rule/provision under the Scheme. 2. All staff loans will be sanctioned by CO-HR and will be released by Staff Loans - CRLO. G. FESTIVAL ADVANCE It is agreed to consider sanction of festival advance as follows: Quantum of Festival Advance One-month salary subject to a maximum of the following limits. Scale I: Scale II: Scale III: Rs. 30,000/- (Rupees Thirty Thousand Only) Rs. 33,000/- (Rupees Thirty Three Thousand Only) Rs. 40,000/- (Rupees Forty Thousand Only) Salary for the purpose of Festival Advance shall be last drawn Basic Pay, Dearness Allowance. Terms & Conditions : 1. Festival advance will be an interest free advance. 2. Festivals for the purpose of availing Festival Advance include all festivals declared as holidays under the Negotiable Instruments Act, for the year irrespective of place of working. 3. Festival advance shall be granted to an Officer whose salary deductions including the proposed loan instalment do not exceed 75% of his gross salary, i.e., 25% of his gross salary should be his take home Pay. 4. Only those Officers, who have completed one year of service from the date of joining and confirmed, are eligible for festival advance. 5. Festival advance is recoverable in 10 equal monthly instalments commencing from the month in which the Festival Advance is taken. While sanctioning Festival Advance if fraction arises, it should be rounded off to the next nearest Rs. 10/- figure. However the festival advance should be within the maximum limit. 6. The festival advance can be released two weeks in advance of the respective festival. 7. Festival advance can be availed once in a year after the completion of 12 months and not earlier. In other words the gap between two festival advances to be availed by an Officer should be 12 months. Memorandum of Understanding ~ 23/08/2013 Page 20 of 47

21 8. Such of those Officers who are having balance of festival advance are not entitled for the same. 9. Officers who are under suspension are not eligible for festival advance. A Circular has already been issued extending this facility for the year The said Circular number is mentioned below for reference : 2. REIMBURSEMENTS CIRCULAR No.436, Ref No.046/60 DATED 11/01/2013 A. SUBSIDISED CANTEEN FACILITY It has been agreed to enhance the canteen subsidy as under : - Scale I: Scale II: Scale III: Rs. 500/- per month (Rupees Five Hundred Only) Rs. 550/- per month (Rupees Five Hundred Fifty Only) Rs. 700/- per month (Rupees Seven Hundred Only) Terms & Conditions: 1. The revised amount will come into effect from 01/07/ If an Officer is on loss of pay, the subsidy will be paid on pro-rata basis for the number of days he works in a month. B. NEWSPAPER AND PERIODICALS ALLOWANCE It is agreed to pay the following towards cost of newspaper and periodicals through salary : Scale I: Rs. 225/- per month (Rupees Two Hundred Twenty Five Only) Scale II: Rs. 250/- per month (Rupees Two Hundred Fifty Only) Scale III: Rs. 275/- per month (Rupees Two Hundred Seventy Five Only) This will come into effect from 01/07/2013. C. REIMBURSEMENT OF EDUCATIONAL EXPENSES/ TUITION FEE It is agreed to reimburse Educational expenses / Tuition fee of Rs.200/- (Rupees Two Hundred Only) Per Month per child for two children, subject to a maximum of Rs.4,800/- (Rupees Four Thousand Eight hundred Only) per annum. Terms & Conditions : 1. The scheme is operative from the academic year ( ). 2. The Officer is required to claim the reimbursement by producing the relevant receipts from the School / College. Reimbursement shall be made only once in a year and the same will be made on production of Fee receipt from the School / College. No Monthly / Quarterly / Half Yearly reimbursements will be considered. Memorandum of Understanding ~ 23/08/2013 Page 21 of 47

22 3. The amount reimbursed shall be Rs. 200/- (Rupees Two Hundred Only) per month per child or the actual fee per month whichever is less. 4. The reimbursement may be given in respect of an adopted child also provided the Officer has officially informed the Bank with proof of adoption. D. LUNCH CHARGES Whenever an Officer is required to go out on Bank s work for the purposes cited below and in case he is delayed and cannot return to his branch / office by the lunchtime he will be paid the following lunch charges. Purpose: Clearing, Cash remittance either to RBI, other Banks or Branches, Godown work or any other official work entrusted by his supervisor. Area Metro and Urban centers Amount Rs.100/- Semi Urban and Rural Centres Rs. 80/- This revised amount will come into effect from the date of this MOU. E. LEASE RENT REIMBURSEMENT During the course of negotiations a need was felt for re-classification of areas and enhancement of lease rent for the officers. It is agreed to reimburse the lease rent at the following rates as mentioned below : (Population figures as per 2001 census) AREA PLACES SCALE-I SCALE-II SCALE-III I Major A Class Cities & Project Area Centres in Group A II Area I and State Capitals III Population above 5 Lakhs IV Population below 5 lakhs TERMS AND CONDITIONS: This supercedes all the earlier terms and conditions stipulated in this regard. 1. This will be with effect from 01/07/ Lease Rent Reimbursement shall be paid after recovery of 1.20% of the first stage of the scale of pay from the rent paid. 3. The Officer should enter into a lease agreement with the landlord of the building and produce original of the lease deed along with the attested copy to the Bank. In case the landlord is not agreeable to give the agreement on stamp paper, it would be sufficient on plain paper. Memorandum of Understanding ~ 23/08/2013 Page 22 of 47

23 4. Lease agreement should be in the name of officer for a period of 11 months and more. 5. The right to surrender the lease will be vested with the officer. 6. However, if the officer is unable to produce the lease agreement, following procedure may be adopted: a. The Officer concerned should produce the original rent receipt duly signed by the landlord with requisite stamp affixed once in a year. b. The house rent incurred by the officer concerned will be reimbursed through pay roll subject to clause (a) 7. While disbursing lease rent all statutory requirements are to be followed. 8. The rent so reimbursed will be treated as House Rent allowance paid to Officers under Sec.10 (13A) and the tax will be deducted at source. 9. For the purpose of Privilege leave encashment, the Lease Rent reimbursed shall not be taken into account. The notional HRA shall be taken into account. 10. Whenever the Bank is in a position to provide quarters to the officer, he should occupy the quarters offered by the Bank. 11. a. Where an Officer has availed housing loan and has constructed /purchased a house/ flat and in case his place of posting is also the same, the officer should stay in his own house/ flat. b. In case an officer who has been posted to a place other than the place where he owns the house/ flat and when he is transferred back to the place where he owns the House/ Flat, he should occupy the house. In both the above cases, the officers are not eligible to claim Lease Rent under this scheme. However he is eligible for HRA as per IBA provisions. 12. Own house means, house standing in the name of the officer or spouse. 13. In case any officer is allotted Bank s quarters and if he refuses to occupy the same, he will not be eligible for reimbursement of lease rent under the above scheme. He can claim only the HRA as applicable to the place of work. 14. The rent will not be reimbursed under this scheme to the officers under the circumstances mentioned hereunder: - a. Officers under suspension: Officers under suspension may at the discretion of the Bank be permitted to retain the residential accommodation provided to him upto a maximum period of 3 months from the date of suspension. Memorandum of Understanding ~ 23/08/2013 Page 23 of 47

24 b. Officers on study leave: An officer proceeding on special study leave on his own is not eligible for rent reimbursement during the period of special study leave. c. Officers on extraordinary leave: In the case of officers who are on extraordinary leave for more than one month, the management will take a decision based on the merits of each case and decision will be taken whether to reimburse the house rent, which was already occupied by the officer concerned. The application shall be made to the Human Resources Department for taking decision in such matters. d. Retired Officers: Officers may be permitted to retain the house for a period of one month from the date of relieving from the services and rent will be reimbursed as per eligibility. e. Deceased Officers: In the case of Officers who die while in service, the Management may consider the reimbursement of rent based on the merits of each case at the request of the dependants and reimburse the house rent for a period not exceeding one month. The application shall be made to the Human Resources Department for taking decision in such matters F. CONVEYANCE REIMBURSEMENT It is mutually agreed to revise the existing quantum of litres of petrol as under : 1. OFFICERS WHO ARE OWNING VEHICLE: (In Litres of Petrol / Diesel per month) AREA SCALE-I SCALE-II SCALE-III METRO URBAN SEMI-URBAN RURAL Production of petrol / diesel bills in reimbursement claim cases. Rate : Petrol / Diesel rates at the rate as applicable in respective state capitals 2. OFFICERS WHO ARE NOT OWNING VEHICLE (FIXED CONVEYANCE) In case of officers who do not own any vehicle, it is agreed to reimburse equivalent cost of 90% of the quantum mentioned above as conveyance. TERMS AND CONDITIONS: a. This shall come into force with effect from 01/07/2013. b. The cost of the petrol / diesel in terms of litres shall be reimbursed on an actual basis within the ceiling fixed Memorandum of Understanding ~ 23/08/2013 Page 24 of 47