Service Charges

Revision of Service Charges – Foreign Exchange Related Services w.e.f. 10.09.2008: I.Export Related Transactions.
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Service Charges

Revision of Service Charges – Foreign Exchange Related Services w.e.f. 10.09.2008: I.Export Related Transactions.

PARTICULARS REVISED CHARGES * (INCL. OF SERVICE TAX)
Export Bills Purchased/ Negotiated/Discounted
Processing charges for each foreign currency export bill
Processing charges for each rupee export bill 		Commission For bills upto USD 5000
Rs 600/-
For bills over USD 5000 `1200/-
0.30%
Minimum `600/- Per bill
For forwarding export documents on which no collection, commission or exchange accrues to the bank (i.e. from one bank to the other in India) 0.30%
Min.`1000/- per bill
Reimbursement charges under Letter of Credit Upto USD 5000
`600/-
Over USD 5000 & upto USD 1 lac – `1200/-
Over USD 1 lac
`1500/ -per reimbursement
Forwarding export documents to another bank for negotiation to whom LC is restricted by the bank, which has booked the forward contract. 0.30 %
Minimum ` 1000/-

In respect of transactions other than US Dollars »

In respect of transactions other than US Dollars, the ceilings in amount would mean equivalent of the amount in USD. For export bills (in foreign currency / Rupees) Purchased / Negotiated / Discounted, in addition to the above charges interest at the appropriate rate to be recovered for the transmit period.

For joining customers’ guarantees and giving guarantees on behalf ofcustomers in respect of discrepant documents 0.20 % Minimum ` 1000/-
Overdue export bills purchased/negotiated/discounted, where proceeds are not received in Nostro Account on orbefore the due date. ** ` 700/- per quarter or part thereof
Charges for discrepancies in export document under L C. USD25 / -
Collection Bills
Both foreign currency and rupee export bills. 		0.15 %
Min.`600/-
Max. `25,000 / –
Export bills sent for collection where proceeds are notreceived within 6 months** `700/- per quarter or part thereof
For each complete set ofexport document sent by the exporter directly to overseas buyer in termsof extant FEMA regulations while disposing of the relative GR forms. ` 700/- per bill
Thischarge is in addition to commission recovered while crediting proceedsof advance payment in the customer’s account.
Additional charge where proceeds of the bills are receivedthrough a Bank other than the collecting Bank at the instance ofExporter/Overseas buyer 0.15 %
Minimumof `600/-
Certificates Issuanceof certificates / attestation in respect of export transactions. `120/-per certificate
Registration of export contracts. ` 700/- flat per registration.
`400/- flat per amendment.
Processing fee foradvance against Government sponsored incentive scheme. 0.50 % Minimum `500/-
Max.25,000 / -.
Export letter of credit:
Advisingletter of credit
(recording,scrutinizing, authenticating,
Verification)		 `1500/- flat per Letter of Credit.
Advising amendments ` 600/- flat per amendmen

Applicable also in case of deferred exports »

Applicable also in case of deferred exports if the relative proceeds are not received within the stipulated period. Not applicable in case of bills drawn on countries with externalization problem but paid in local currency and the exporters has obtained necessary approval from Reserve Bank.

Confirmation charges

  1. Commitment charges
  2. Usance charges

0.175% for every quarter or part there of
0.175 % for bills up to 10 days’ sight
0.35 % for bills up to 10 days’ and up to 3 month’s sight.

0.35 % for the first 3 months plus 0.090% for every month in excess of three months, for bills over 3 months sight.

$ LC up to ` 5 crores Normal Rate, LC Above `5 crores up to ` 10 crores

Up to ` 5 crores – normal rate plus,
For amount in excess of ` 5 crores – 50% of normal rate

LC Above ` 10 crores –
Up to ` 5 crores – normal rate plus
For amount in excess of ` 5 crores & Up to ` 10 crores – 50 % of normal rate plus
For amount in excess of ` 10 crores – 25 % of normal Rate.

Min ` 600/- for all customers plus processing fee for adding
confirmation ` 1500/-.

Transfer of letter of credit `700/- flat for each advice of transfer
Acceptance commission for accepting usance drafts to be drawn on and accepted by Banks in India.) 0.175 % per Quarter and part thereof
Minimum 1500/-

Import Related Transactions »

$ Concession for confirmation of High value export LCs are applicable for both Commitment charge and Usance charge.

Commission For establishing Letter of Credit (LC)

  1. Commitment charges
  2. Usance charges
 For LCs upto `5 crores
0.175% for every quarter or part thereof

  1. 0.175 % for bill upto10 days’ sight.
  2. 0.35% for bills over 10 days and up to 3 months sight,
  3. 0.35% for the first three months plus 0.090 % for every month in excess of three months, for bills over three months sight.

$ LC above `5 crores & upto ` 10 crores: Upto 5 crore – normal rate plus
For amount in excess of ` 5 crores – 50 % of normal rate.

LC above ` 10 crores: Up to ` 5 crores – normal rate plus
For amount in excess ` 5 crores and
Upto ` 10 crores – 50% of normal rate plus
For amount in excess of ` 10 crores – 25% of normal rate.
Minimum ` 600/- for all customers
Commission for establishing LCs on 100% cash margin As per table-I Revised Annexed
Amendment to LCs:
Extension of validity of LC within the period for which commitment charges have been collected 		`700/- for all customers
Where extension of validity of credit goes beyond the period for which commitment charge has been collected. Commitment charges as applicable to establishment of LC.
Min. ` 600 / –
Enhancement of value of credit Usance and commitment charges as applicable to establishment of LC.
Amendment extending the tenor of the Bill of Exchange. Normal usance charge plus additional usance charge at 0.09 % per month or part thereof.

Concession for confirmation of High »

$ Concession for confirmation of High value export LCs are applicable for both Commitment charge and Usance charge.

Amendment other than extension of validity or enhancement of tenor of the Bill of Exchange including Deferred payment LCs/ Guarantees `700/- flat for all customers
For revival of expired LCs within 3 months from date of expiry Commitment and usance charges from date of expiry to validity date of revived LC
Countersigning Bills of Exchange drawn on importers under LCs. 0.1% per month
Minimum 0.25% for the tenor of the bill in addition to commitment and Usance charges.
(Now Introduced)
Revolving letters of credit. a) Commitment charge 0.175 % for every quarter or part thereof on the maximum amount of drawing permitted at any one time during the period from date of establishment of LC to the last date of validity and 0.175% on each amount reinstated from date of reinstatement to the date of subsequent reinstatement or the last date of validity of LC.
Usance charge as per tenor of the bill on the maximum amount of drawing permitted at one time

0.175 % for bill upto10 days sight,
0.35 % for bills over 10 days sight and up to 3 months sight.
0.35% for the first 3 months plus 0.090 % for each month in excess of three months for bills over 3 months sight.

$ LC up to ` 5.00 crore: Normal rate.

LCs above `5 crore & upto ` 10 crore: -Upto 5 crore – normal rate Plus
-For amount in excess of ` 5 crores – 50 % of normal rate.

LCs above ` 10 crores: -Upto ` 5 crores – normal rate plus
-For amount in excess ` 5 crores and upto
` 10 crores – 50% of normal rate Plus
-For amount in excess of ` 10 crores –
25% of normal rate.
-Minimum ` 600/- for all customers
No change in commitment and Usance charges.

$ Concession for confirmation of High value export LCs are applicable for both Commitment charge and Usance charge.

For establishing LCs / Guarantees on deferred payment terms covering import of goods: @ (a)Commission on the balance outstanding at the beginning of each quarter

SBH1/ SBHTL1
SBH2/ SBHTL2
SBH3/ SBHTL3
SBH4/ SBHTL4

Against GOI counter guarantee or 100 % cash Deposit.

 (Rates per quarter or part thereof)

Upto ` 5 crore ` 5 to 10 crore Above
`10 crore
0.60% 0.30% 0.15%
0.60% 0.30% 0.175%
0.60% 0.30% 0.175%
0.60% 0.50% 0.25%

0.60% per quarter or part thereof for all customers rated below SBH4/SBHTL4

0.09% 0.075% 0.075%
@ Consortium Advances: Floor rate for retention of charges by any member bank for opening of LC and issue of BG will be as determined by the consortium of banks. However, a floor rate of 50% of the charges will have to be normally retained in our case. For reduction of the floor rate below 50% discretionary rests with Managing Director.
Amendments: a) Extending validity period within 3 months (for which commission has already been collected). `600/- flat
Extending validity beyond 3 months period Additional commission at 0.60% per quarter or part thereof.
Commission on import bill (under LCs)
Foreign currency bills at the time of crystallization or retirement, whichever is earlier.		 0.125 %
Charges on account of discrepant documents USD 30 to be taken from outside party (Discrepancy charges should be stipulated at the time of opening LC)
Import bills received under letter of credit on which no exchange benefit accrues to opening bank. 0.225 %
Rupee bills at the time of retirement.
ii) If Bills are not retired within 10 days from date of receipt of the bills in case of demand bills and on the due date in case of usance bills.		 0.225 %

Additional 0.125 %
Commission on import bills (not under L/C)
Where exchange margin is earned on foreign currency bills		 0.225 % Minimum `600/-
On each bill drawn in rupees and on each bill drawn in foreign currency on which no exchange margin accrues. 0.35 % Minimum `1000/-
On bills/ documents covering project imports under inter-governmental aid scheme (including those financed by international agencies like World Bank, IMF, ADB, etc) where no letter of credit are opened. Flat 0.075 % Minimum `600/-
In case of document received by importers directly from overseas exporters `2500/- for all customers
Non-customers ` 3500/-
If the overseas remitting bank or the exporter abroad requests proceeds of collection of bills to be remitted in a currency other than the currency of the bill. Additional commission at 0.175 %
10. Parcels In all cases `600/- per month.

Inward Remittances »

Type of transaction
Encashment of TTs and purchase of MTs/ DDs in respect of which cover has been received in Nostro A/cs.		 Apply current TT Buying Rate. No exchange Margin or interest to be charged.
Encashment of TTs and purchase of MTs / DDs where reimbursement is to be obtained in cover by drawing DDs on overseas branches of correspondent Bank. Apply current TT Buying Rate plus exchange margin @ 0.125%. plus interest @ 15 % for a minimum period of 10 days.
Encashment of customer’s personal cheques, demand, drafts, international money orders, bankers pay orders payable abroad. Apply current TT Buying Rate Plus exchange margin @ 0.125%(our FCIP rate includes both the above components) plus interest @ 15 % for a minimum period of 10 days + ` 100/-
Rupee Draft issued by correspondent Bank
Drawn on the branch where correspondent bank rupee A/c is maintained.		 Free of charge
Drawn on Branch under special arrangement where correspondent Bank rupee A/c is not maintained. Free of charge
Clean payment

Effected under instructions from foreign correspondents.
Stop Payment		 Payment against draft ` 100/-
Payment against TT ` 150/-
`100/-
Where the inward remittance has to be paid in foreign currency by way of a demand draft /mail transfer/ payment order /telegraphic transfer. ` 600/- flat per transaction
Certificates: A)For issuing bank certificate on security paper/Bank’s letter head in respect of clean remittances from abroad and/ or for Encashment of foreign currency traveler’s cheques/foreign currency notes.
B) Issue of Certificates on Banks letterhead (where Rupee value of inward remittance does not exceed ` 5,000/-).		 ` 100 / – per certificate
` 100/- per certificate
Note: No certification charges for issuance of certificate to the NRI depositors  

Outward Remittances »

On all foreign currency outward remittances not being proceeds of import bills.
Issue of duplicate foreign currency draft		 Individual ` 100/- .For others
` 600/- flat per remittance plus actual out of pocket expenses ie., postage, courier & telegram charges.
Individuals ` 100/- + actual out of pocket expenses.
Others ` 300/- + out of pocket expenses.
Rupee Remittances Individuals: 0.125% Min. 125/- in all cases
Others: 0.30% Min. ` 600/- in all cases
Outward remittances from FCNR (B) A/cs, NRE A/cs Free of charge
Stop payment charges in respect of Draft issued on ForeignCorrespondents A uniform charge of 20 units of respective currency or the actual charges whichever is higher, is to be charged

Clean Instruments for Collections »

Clean instruments sent abroad for collection. Individuals at 0.30%, Min ` 300/-
Others at 0.30%(, Min `600/-
Maximum ` 25000/-).
  1. Opinion Report for exporter / importer (both)
  2. Opinion Report on our customer provided to foreign Bank.
  1. Actual paid to outside agencies plus out of pocket expenses
  2. USD 25/- per opinion to be recovered from foreign banks.
    (Now Introduced)

Merchanting Trade »

(If foreign currency remittances are received in advance by the exporter from the overseas buyer and the funds are held in Nostro account at the specific request of the exporter)

Commission:

  1. On import bills received under back to back LC.
  2. On export bills drawn by merchant exporters
 No charges specified.
0.225%
0.225%

Forward Contracts »

  1. For booking of sales and purchase contracts
  2. For each request for early delivery, extension or cancellation
  1. ` 700/- flat per contract
  2. ` 700/- plus swap cost and cancellation charges wherever applicable.

Foreign Currency Travellers Cheques »

Sale of foreign currency Travelers cheques:

  1. Commission on rupee equivalent value of traveller cheques sold to Indian Residents.
  2. Commission on foreign currency travellers cheques issued against foreign currency remittance at the request of the beneficiary.
  1. 1 %
  2. 0.25 %

Foreign Currency Loans »

FCDL Transaction fee (Upfront)
FCTL Transaction fee (Upfront)
PCFC & EBR (for Debit & Credit transactions)		 `25,000/-
`35,000/-
USD 30

Eefc Transactions »

Debits in EEFC Account (per transaction) USD 10

Guarantees »

agencies pending production of Bill of Lading.

  1. Where LCs have been opened by us
  2. Other guarantees
  1. `700/- flat
  2. 0.30% for 3 months plus 0.150% for each additional month.
Guarantees for Project exports Performance guarantees(*)

  1. ECGC Cover
    1. 75 %
    2. 90 %
  2. Against 100 % GOI Counter Guarantee
  3. Against 100 % Cash Deposits to the extent of Banks liability
  4. Other guarantees (Not covered by a/b/c above)
    1. 0.50% p.a.+ECGC premium
    2. 0.40% p.a.+ECGC premium
  2. 0.045% per month or part thereof Minimum 0.150 %
  3. 0.030%. per month or part thereof minimum 0.125 %
  4. 1.15% per annum.

(*) Proportionate charges to be recovered for the completed months or part thereof

Other Export Performance Guarantees, Bid Bonds & those for deemed exports (@) 0.10 % per month,
Minimum 0.30 %
All other Guarantees ** Where

  1. 100 % GOI counter Guarantee
  2. 100 % cash deposit to the extent of bank’s liability.
  3. Others
 0.175 % per month Min. 0.30%
As per Table II annexed.
0.175 % per month Min. 0.30%
Guarantees issued on behalf of overseas banks/parties
(where charges are payable by overseas banks / parties) 		0.175% per month
Minimum 0.30%

(@) Includes 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.

The period of liability for calculations of charges shall include the claim period.

OUT OF POCKET EXPENSES
Such as Telex/ Cable/ Swift / Correspondence Bank’s Charges 		Actual to be recovered
STAMP DUTY As per charges prescribed by Government of India

Issuance of Rate Certificates »

(Now Introduced)

Period Non-Customers Customers Discretion
Upto past 12 months `250/- for a block of 4 different currency rates or part thereof. 50% charges of what is applicable to non-customers Branch Managers of AGM / Scale IV incumbency branches and AGM at controlling office in case of other branches will have discretion to grant waiver upto 100% to customers on client-specific business considerations.
More than 12 months upto 60 months `500/- for a block of 4 differential currency rates or part thereof. – do – - do –
More than 60 months `1000/- for a block of 4 different currency rates or part thereof – do – - do –
Notes:

  1. Actual out of pocket expenses to be recovered in all cases.
  2. Charges for service not covered above will continue as extant
  3. Where the business is shared between other banks, the charges would be shared in the agreed

proportion. Where bank charges are to be recovered from the overseas buyers/ sellers but are
refused by them such charges shall be recovered from the customers

Letters of Comfort & Service Charges »

  1. Backed by 100 % discharge of liability (Viz., cash margin, sanctioned term loan, guarantee of First Class bank, 100 % lien on drawing power) —- 0.6875 % p.a.
  2. Others — 2.75 % p.a.
    Minimum charge for 3 months will be recovered. Table – I LETTER OF CREDIT – CHARGES (Established against 100% cash deposit)(Import Transactions) (All figures in percentage)
Up to ` 5 Crore For the portion of LC from ` 5 Crores to ` 10 Crores. For the portion of LC beyond ` 10 crore
Category of Customers
(Rating – wise) 		Nature of Charges 10 Days 3 Months 6 Months 10 Days 3 Months 6 Months 10 Days 3 Months 6 Months
SBH-1 Commitment Usance 0.045 0.045 0.045 0.090 0.090 0.165 0.0175 0.0175 0.0175 0.035 0.035 0.065 0.0125 0.0125 0.0125 0.0225 0.0225 0.040
SBH-2 Commitment Usance 0.045 0.045 0.045 0.090 0.090 0.165 0.0225 0.0225 0.0225 0.045 0.045 0.080 0.0125 0.0125 0.0125 0.0225 0.0225 0.040
SBH-3 Commitment Usance 0.045 0.045 0.045 0.090 0.090 0.165 0.035 0.035 0.035 0.070 0.070 0.125 0.0175 0.0175 0.0175 0.035 0.035 0.065
SBH-4 & Below Commitment Usance 0.045 0.045 0.045 0.090 0.090 0.165 0.045 0.045 0.045 0.090 0.090 0.165 0.0225 0.0225 0.0225 0.045 0.045 0.080
Non-customers Commitment Usance 0.045 0.045 0.045 0.090 0.090 0.165 0.045 0.045 0.045 0.090 0.090 0.165 0.0225 0.0225 0.0225 0.045 0.045 0.080

Note:

  1. The above charges should be recovered, subject to a minimum of ` 600/-
  2. Margin for exchange fluctuation may be retained, if so warranted, along with 100% Cash Deposit.

Table – II GUARANTEES – CHARGES (ISSUED AGAINST 100% CASH DEPOSIT)

Nature of GUARANTEE SBH-1 SBH-2 SBH-3 SBH-4 Below Non customer
Export Performance Guarantee (other than those issued for project export) issued against
a) 100% cash deposits to the extent of Bank’s liability 		0.030 % per month Min. 0.100 % 0.030 % per month Min. 0.100 % 0.030 % per month Min. 0.100% 0.030% per month Min. 0.100% 0.030 % per month Min. 0.100%
All other guarantees against
a) 100% cash deposits to the extent of Bank’s liability 		0.045% per month Min. 0.175% 0.045% per month Min. 0.175% 0.045% per month Min.0.175% 0.045% per month Min.0.175% 0.045% per month Min.0.175%

Margin for exchange fluctuation may be retained, if so warranted, along with 100% Cash Deposit.

Discretionary power structure for concessions on Forex transactions:

Authority Discretionary power vested for permitting Concession
DGMs including DGMs of Branches & ZOCC Upto 20%
HOCC – III / GM Upto 40%
CGM / HOCC – II / HOCC – I Beyond 40%

Concessions can also be granted on business consideration in respect of charges that are levied on flat/ fixed basis.

Discretionary power structure for concessions on Letters of Comfort:

Authority Discretionary power vested for permitting Concession
DGMs including DGMs of Branches & ZOCC Upto 10 %
HOCC – III / G M Upto 25 %
CGM Upto 50 %
MD Upto 75 %
HOCC – II / HOCC – I / EC Upto 100 %
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