BCC:BR:104/440 CIRCULAR TO ALL BRANCHES/ OFFICES IN INDIA

07.12.2012

Issued by Retail Banking Department

Dear Sir, Re: Issuance of BOBCARDS to Banks Fixed Deposit Customers We are happy to inform that Board of Directors in their meeting held on 27.09.2012 has approved scheme of issuing BOBCARD to Banks Fixed Deposit customers with details as under:1. If a customer does not have proof of Income (ITR return) or Income level of customer does not justify the issuance of a particular credit card with higher credit limit or if any existing BOBCARD customer desires to have higher limit for a specific period, same can be availed against lien on FDR. 2. The credit card may be offered to FD account holders with deposit amount of ` 25000 and above, without levying joining fee, against Banks lien on FDR for BOBCARD dues. 3. Branches are required to obtain Letter of Lien (Annexure-1), Letter of Authority (Annexure-2) from the BOBCARD applicants. BOBCARD application alongwith a copy of duly discharged FDR, copy of Letter of Lien (Annexure-1) and Letter of Authority (Annexure-2) should be forwarded to Bobcards Ltd. alongwith a covering letter (Annexure-3) from the branch confirming having marking of Lien in favour of Bobcards Ltd. and keeping the FD in safe custody and undertaking not to release the same without obtaining NOC from Bobcards Ltd. 4. The product type will be decided as per the qualifying amount of publicized credit limit without considering the income criteria attached to the product. 5. 50% waiver in Annual Fee is available even if the criteria of annual fee waiver (as per product design) is not met. 6. Service charges in these cases shall be 1.50% as against 2.50% applicable under normal circumstances. 7. The sanctioned credit limit shall not exceed 80% of the FD amount and cash limit not exceeding 80% of the credit limit. The said arrangement is proposed keeping in view that principal amount with accrued interest (of 180 days) will not exceed the FD amount in case of default by Cardholders and dues will be recovered by liquidating the FD in case of an account becoming NPA.

We are sure that this scheme shall help branches in mobilizing FD and Bobcards Ltd in expanding Credit Card base. Wishing you all the best in your business endeavours. Yours faithfully,

Kalyanarama alyanaraman) (S Kalyanaraman) General General Manager Banking, OL) (Retail Banking, Mktg & OL)

Annexure - 1

LETTER DEPOSITING FIXED/ SHORT DEPOSIT NOT TO BE STAMPED Place : _________________ Date : _________________ The Chief/Sr. Br./Br. Manager, Bank of Baroda ______________ branch Dear Sirs, I/We hereby apply for the facility of Bobcard with credit limit of Rs.__________ account with you at interest at the rate of 2.5 % p.m with monthly/ rests or at such rate or rates as the Bank may specify to me/us in writing in accordance with the Banks Prime Lending rate and my/our credit rating with the Bank from time to time. As security for the fluctuating balance from time to time of the Bobcard limit which you may grant to me/us, I/We, Mr./Mrs.____________________ will deposit with you the Fixed Deposit Receipt No. Dated favoring me/us, Mr./Mrs. ______________ _____________________________ for Rs. _______________ due from the Bobcard, so that you may hold the said fixed deposit receipt as security for such fluctuating balance. The said fixed deposit receipt is to be treated as a continuing security even if the Bobcard account runs into credit, is reduced or extinguished at any time or from time to time. If the Bobcard limit together with interest and banking charges payable by me/us is not paid before the due date of the fixed deposit receipt the proceeds of the fixed deposit may be credited to the Bobcard limit account and the balance if any may be paid to me/us, Mr./Mrs._____________. If the Bank recalls the Bobcard limit granted to _____________________ the Bank in that event shall be entitled to adjust the Bobcard limit account by payment of deposit receipt and in that case may allow such rate of interest as per the rules of the Bank in case of prepayment. If the said fixed deposit is renewed by me/us, Mr./Mrs._________ for a further period then until the Bobcard limit together with interest and banking charges is paid in full the renewed fixed deposit receipt will be endorsed and deposited with you so that you may hold the same and the proceeds thereof as security as aforesaid until the Bobcard limit together with interest and banking charges is paid by me/us in full. And I/We, Mr./Mrs.____ ____________________ hereby request the Bobcard limit grant the above facility to me/us and agree that the fixed deposit receipt No.________ dated__ ___ for Rs.__ ________ issued by Bank of Baroda to me/us and all renewals thereof and the proceeds thereof shall be held by the Bank as security for the Bobcard limit together with interest and banking charges as aforesaid. Yours faithfully

Annexure 2 LETTER OF AUTHORITY

The Manager, ., .., ..., , Dear Sir, I/We have been sanctioned Bobcard with credit limit of Rs. ... against my/our fixed deposit/short deposits, the details of which are given in the Letter depositing fixed/short deposits receipts dated .. Notwithstanding anything contained in our Letter depositing fixed/short deposits receipts dated .. I/We hereby irrevocably authorize Bank of Baroda to keep the various fixed deposits/short deposits ( referred to above) renewing until the Banks Bobcard dues ( including interest, penal interest, cost and charges, if any) are paid in full. I/We hereby declare and confirm the Bank shall continue to have lien on above referred deposits/ irrespective of the fact that receipts pertaining to above deposits remain undischarged. I/We hereby further irrevocably authrise the bank to appropriate the proceed of the said deposits to liquidate my/our Bobcard dues ( including interest, penal interest cost and charges, if any) even in the absence of discharge on the said deposits/ receipts by me/us as if the said deposits receipts have been duly discharged by me/us.

Borrower/s

ANNEXURE 3 The Sr. Vice President ____ / 20____ Credit Card Business BOBCARDS Ltd Corporate Office Jogeshwari (W) Mumbai 400102 Dear Sir, Re : Issuance of Credit Card to Mr. / Ms. ____________________________ against lien on FDR We hereby enclose credit card application of Mr. / Ms. ___________________________________ under FD Scheme. We write to confirm that: 1. We have noted lien for Rs. _______________ on his/ her fixed deposit bearing no. _____________ and A/c No. __________________________ (copy enclosed) for Rs. ________________________ 2. We have obtained letter of lien and letter of Authority as per prescribed format and the same are enclosed. 3. The aforesaid FD is duly discharged on the reverse with our endorsement. 4. We confirm having retained the original FDR copy in our safe custody and shall not release the same without obtaining No Objection Certificate (NOC) from Bobcards Ltd. Date : ____ /

Yours faithfully,

Signature with Signature No: Name : Designation : EC No. : Name of the branch :