Summer Training Report

On
Business Opportunity for Yes Bank Ltd in FCRA Accounts of
Charitabe !nstitutions"
Submitted in the partia fufiment for the a#ard of $asters
%egree in Business Administration &'(()*'((+,-
.nder Super/ision Submitted By
$r- 0atindeep Sachde/a Sara/preet Singh
1ice 2resident Ro 3o-)4)
5o/ernment Reationship $anagement $BA 6
rd
Sem
Yes Bank Ltd-
2A3!2AT !3ST!T.T7 OF 735!377R!35 8 T7C9O3OL5Y
:.R.:S97TRA .3!17RS!TY
:.R.:S97TRA
;
INDEX
;- Ackno#edgement 4
'- 2reface <
6- 7=ecuti/e Summary >
6- !ntroduction )
4- O/er/ie# of FCRA ?
<- Company 2rofie ;6
>- !ndustry 2rofie ';
)- Ob@ecti/e of Study 6'
?- Research $ethodoogy 66
+- Samping 6>
;(- Time 2eriod 6)
'
;;- Areas of Study 6?
;'- Anaysis 8 !nterpretation 6+
;6- Comparison of Banks 2roducts <6
;4- Concusion 8 Suggestion <4
;<- 2robems 8 Limitations <;
;>- Anne=ure <)
;)- Bibiography >;
6
ACKNOWLEDGEMENT
! #oud ike to thank a the peope #ithout those hep this pro@ect coud not ha/e been
competed- $r- 0atindeep Sachde/aA 1ice president 5R$ &5o/ernment Reationship
$anagement, Team #ho #as my guideA #as e=tremey patient and open to #hat e/er
suggestion ! had to make and in the process genty guide me #hene/er ! #ent #rong- !
#oud ike to thank $r- A-S-:hurana Senior Ad/isor YBL &Yes Bank Ltd-, #ho ga/e me
chance to #ork in a Bank as reputed as Y7S BA3: LT%- The peope #ithout #hom !
coud ne/er managed this far as $rs- 2u@a Baia 9-O-%- $BA %epartment-
! #oud be faiing in my duty if ! do not e=press my thanks to my respondents #hom !
/isited and #ho spared their /auabe time to ans#er my Cuestions- LastA but not the eastA
my thanks to a the peope #ho heped me in making my efforts fruitfu-

4
PREFACE
2ractica e=posure in the fied of management is e=tremey important as it gi/es a cose
/ie# of the rea business issues- !t heps to co/er a part that remained unco/ered in the
cassroom- !t heps to gain e=perience- 0ust theoretica kno#edge is not sufficient for the
success of any business student- So one shoud ha/e practica kno#edge about each
aspect of ife-
! earnt ot of ne# things from this pro@ectA #hich coud ne/er ha/e been earnt from
theory casses-
!f any findings 8 recommendations go in any #ay to pro/e some ne# ground in heping
the commodity future sectorA ! sha deem my efforts ha/e duy ser/ed the purpose- !n the
forthcoming pages an attempt has been made to present report co/ering different aspects
of my pro@ect-
<
EXECUTIVE SUMMARY

MAIN OBJECTIVE D
Ob@ecti/e of the study is to search Business opportunities in foreign
contribution Reguation Act ;+)>A &FCRA, accounts of charitabe institutions
in %ehi 3CR for the Yes Bank Ltd- and forming strategies to target this
segment for the bank-
SUB OBJECTIVES D
;- To make a comparati/e anaysis of the Banking product offered by the
Banks in FCRA accounts to the charitabe institutions-
'- To take an o/er/ie# of the needs of the charitabe institutions in banking
industry-
6- To recommend a product in accordance to the rues of FCRA ;+)> and as
per the guideines of the RB!-
METHODOLOGY: *
Approach to the pro@ect starts from the deep theoretica kno#edge of the Act
#ith the hep of internet foo#ing the /isits to the office of FCRA at $inistry of
9ome Affairs &$9A, 3e# %ehi- Then /isiting to the different type of 3on
5o/ernmenta OrganiEations &35OFs, in the %ehi and 3CR and coecting the
reCuired information for the pro@ect report by asking the Cuestions to the
respondent institutiona e=ecuti/es or their members-
>
INTRODUCTION TO THE REPORT
Report has been prepared #ith the ob@ecti/e of searching for the business opportunities
for the bank by coecting and anayEing information from /arious sources and making
strategies for the same-
Report has /auabe information #hich has been carefuy
coected and anaysis on the same has been made to reach at the appropriate concusion-
Sur/ey has been done of the /arious charitabe institutes #ith appropriate Cuestionnaire
framed #ith the ob@ecti/e kept in mind- Guestions #ere asked to the officias to the
/arious organiEations and necessary information #as coected as a primary source to the
sub@ect- %etai study of Foreign Contribution Reguation Act ;+)> is done to ha/e the
deep theoretica and practica kno#edge of the pro@ect-
2ro@ect is to study the reCuirements of the charitabe institutions in the banking product
#hich is done by meeting different charitabe institutions and asking them about their
present banker and their needs- A comparison of the banking product offered by the
Standard Chartered Bank and 9%FC Bank is aso done by meeting the t#o Banks
officias in %ehi region-
)
An Overvie !" !#e F"rei$n C"n!ri%&!i"n 'Re$&()!i"n* A+!
FCRA ,-./0
Foreign Contribution &Reguation, Act #as gi/en by the 2ariament in the T#enty*
se/enth year of the repubic !ndia- !t is to reguate the acceptance and utiiEation of
foreign contribution or foreign hospitaity by certain persons or associationsA #ith a /ie#
to ensuring that pariamentary institutionsA poitica associations and academic and other
/ountary organiEations as #e as indi/iduas #orking in the important areas of nationa
ife may function in a manner consistent #ith the /aues of a so/ereign democratic
repubicA and for matters connected there#ith- FCRA department is situated in 3e#
%ehiA $inistry of 9ome AffairsA Foreigners di/isionA @aisamer houseA '>A $an Singh
Road e/ery permission for registration is sent here- Appication Forms can be
do#noaded from #ebsiteA ###-mha-nic-in- 3eed for the Foreign Contribution
Reguation ActA;+)> #as fet due to the security considerations and to ensure that foreign
contribution is utiiEed for genuine acti/ities #ithout compromising on concerns for
nationa security-
The centra go/ernment has the po#er to prohibit any person or organiEations from
accepting foreign contribution or hospitaity if it is determined that such acceptance
#oud ikey Haffect pre@udiciayF a, the so/ereignty and integrity of !ndiaA b, pubic
interestA c, freedom of fairness of eection to any egisatureA d, friendy reations #ith
any foreign stateA or e, harmony bet#een reigiousA raciaA sociaA inguistic or regiona
groupsA castes or communities-
The Act #as essentiay designed to pre/ent fo# of foreign funds to poitica parties in
!ndia-
Re$i1!r)!i"n )n2 3er4i11i"n
An association ha/ing a definite cuturaA economicA educationaA reigious or socia
programme can recei/e foreign contribution after it obtains either
The prior permission of the centra 5o/ernmentA or
5ets it sef registered #ith the centra 5o/ernment-
?
Pri"r 3er4i11i"n
2rior permission is reCuired
Bhere the association does not ha/e a FCRA registration A
Bhere the association is kept under prior permission categoryA
Bhere registration is froEen
Association of poitica nature not being poitica party-
A++"&n!1
!n the Act it is mentioned that registered associations may ony recei/e foreign
contribution in a singe account of a specified Bank branch-
7/ery association so registered sha gi/e #ithin such time 8 in such manner as may be
prescribedA intimation to the centra go/ernment as to the amount of each foreign
contribution recei/ed by it-
A separate set of accounts and records sha be maintainedA e=cusi/ey for foreign
contribution recei/ed and utiiEed- 7/ery account sha be maintained on a yeary basis
duy certified by a chartered accountant aong #ith a baance sheet 8 statement of
receipt8 payment account to $9A-
F"rei$n H"13i!)(i!5
The Act reguates receipt and utiiEation of foreign hospitaity by certain indi/iduas
#hich incudes members of egisatureA office*bearers of poitica partyA @udgesA
go/ernment ser/antsA empoyees of CorporationA #hie /isiting any foreign country or
territory outside !ndia- Such indi/iduas can recei/e foreign hospitaity ony #ith the
prior permission of the Centra 5o/ernment- 2rior permission is not reCuired #hen such
indi/iduas are reCuired to recei/e any emergent medica aid needed on account of
sudden iness contracted during foreign /isitA butA they are mandated to intimate the
Centra 5o/ernment #ithin one month from the date of such foreign /isitIreceipt of
foreign hospitaity- The intimation sha incude the source from #hich and the manner in
#hich such hospitaity #as a/aied by the recipient- Foreign hospitaity incudes cost of
tra/eA boardingA odgingA free transportationA free medica treatmentA etc-
+
O/er 64A(6< associations ha/e been registered under FCRA as on '?th FebruaryA '(() to
recei/e and utiiEe foreign contribution- These associations are broady di/ided into <
categories /iE- ReigiousA CuturaA 7conomicA 7ducationa 8 Socia- $any of these
associations are simutaneousy engaged in acti/ities faing #ithin t#o or more
categories-
3o bank shoud credit any foreign contribution to the account of an associationI35O
uness it produces documentary e/idence of ha/ing obtained registrationIprior permission
from the Centra 5o/ernment for the same- !n case any foreign contribution is credited to
the account of an 35OIAssociationITrust directyA the bank shoud not ao# utiiEation
of such fund and inform the 35OIAssociationITrust concerned to obtain necessary
permissionIregistration from the Centra 5o/ernment for the same- SimutaneousyA the
bank shoud inform the %eputy Secretary &FCRA,A $inistry of 9ome AffairsA 5o/t- of
!ndiaA 3e# %ehi about such receipt- 3on*compiance of the abo/e by the bank #i
constitute a /ioation and #i render the defauting bank iabe for appropriate action by
the Reser/e Bank of !ndia-
S)(ien! Fe)!&re1
%ata pertaining to receipt of foreign contribution for '((<*(> has been compied- !ts
saient features are as beo#D
!- As on 6;*(6*'((>A 6'A;44 associations #ere registered and <;6 #ere granted
prior permission during the year '((<*(>-
!!- For the year '((<*(>A ;?A<)( associations reported receipt of foreign
contribution &incuding those #hich recei/ed 3!L amount, amounting to Rs)A?))-<)
crores-
!!!- Among the States and .nion TerritoriesA Tami 3adu Rs- ;A>(+->4 crores
reported the highest receipt of foreign contribution foo#ed by %ehi Rs-;<<>-4> crores
and Andhra 2radesh Rs ;A(;;-<) crores-
!1- Among the reporting associationsA Bord 1ision of !ndiaA Tami 3adu &Rs-
'<>-4; crores, recei/ed the highest amount of foreign contribution foo#ed
by Caritas !ndiaA %ehi &Rs- ;+6-6> crores, and Rura %e/eopment TrustA
;(
Andhra 2radesh &Rs- ;'>->4 crores,-
An)(51i1 "6 !#e L)1! T#ree Ye)r17 D)!)
An anaysis of the data for the ast three years i-e- from '((6*(4 to '((<*(> sho#s
thatJ
a, .nited States of America is the top donor country-
b, Foundation 1incent 7 FerrerA Spain contributed the highest amount of foreign
contribution-
c, Taminadu recei/ed the highest amount of foreign contribution-
d, Chennai district recei/ed the highest amount of foreign contribution-
e, Bord 1ision of !ndiaA Tami 3adu recei/ed the highest amount of foreign
contribution-
f, Among the purposesA the highest amount #as recei/ed for 7stabishment purposes-
RECEIPT OF FOREIGN CONTRIBUTION IN INDIA
Year Amount
( Rs. in Crores )
% Increase oer
!reious "ear
'((;*(' 4?);-+( )-4'
'(('*(6 <(4>-<( 6-<?
'((6*(4 <;(<-<( ;-;)
'((4*(< >'<>->? ''-<<
'((<*(> )?))-<) '<-+;
TOP RECEIPTENT ASSOCIATIONS IN DELHI
F"rei$n C"n!ri%&!i"n R18Cr"re1
NAME OF ASSOCIATION 9::;<:/ 9::=<:; 9::><:=
Caritas India, Delhi 193.36 65.30 37.54
;;
Plan International Inc., Delhi 92.09 64.91 56.80
Oxa! India "r#st, Delhi 71.90 52.30 33.93
$O$ Children%s &illa'e o India, Delhi 55.91 26.01 38.66
$ociet( or De)elo*!ent +lternati)es, Delhi 53.79 28.46 19.32
NU#BER OF A$$OCIATION$ REPORTING TO FCRA
DEPART#ENT
,-+. +$$OCI+"IO/$
'((6*(4 ;);4<
'((4*(< ;?<4(
'((<*(> ;?<)(
FOREIGN FUNDS COMING TO DELHI
F"rei$n C"n!ri%&!i"n R18+r"re1
'((6*(4 ?<)-;'
'((4*(< ;()<-'6
'((<*(> ;<<>-4>
;'
COMPANY PROFILE
Country !ndia
!ndustry Banking
3S7IBS7 Listing 3S7 Code *<6'>4?
Regd-8 corporate office 3ehru centreA+
th
foorA %isco/ery of !ndiaA
%r-A-B-RoadA #oriA $umbai 4(((;? TeD*
K+;&'', >>>+ +(((
3orthern Regiona Corporate Office 4?A3yaya $argA ChanakyapuriA 3e# %ehi
;;(('; TeD*K+;&;;, >><> +(((
;6
Bebsite ###-yesbank-in
Yes BankA !ndiaFs ne# age pri/ate sector Bank is the outcome of the professiona
commitment of its founder $r- Rana :apoor supported by his highy competent top
management team to estabish a high CuaityA customer centricA ser/ice dri/enA pri/ate
!ndian Bank catering to the Future !ndustries of !ndia"-
Yes Bank has adopted internationa best practicesA the highest standards of ser/ice Cuaity
and operationa e=ceenceA and offers comprehensi/e banking and financia soutions to
a its /aued customers- A key strength and differentiating feature of Yes Bank is its
kno#edge dri/en approach to banking and an unprecedented customer e=perience for its
retai and #eath management cients-
Yes Bank is steadiy buiding corporate and institutiona bankingA financia marketsA
in/estment bankingA corporate financeA business &Sma 8$edium 7nterprises, and
transaction bankingA internationa bankingA retai banking and #eath management
business ines across the country- The BankFs constant endea/our is to pro/ide a
deightfu banking e=perience e=pressed #ith simpicityA empathyA and totaity-
Yes Bank understands the financia needs of the 5o/ernment of !ndiaA in its progress and
de/eopment roe of a H5ro#ing !ndiaF through Yes BankFs :no#edge Banking
approach and the ob@ecti/e of being the Bank for an 7merging !ndia"- Yes Bank remains
committed to ser/ing this speciaiEed segment- Yes BankFs kno#edge BankerFs dei/er
inno/ati/eA structured and comprehensi/e soutions through a $oney %octor" approach
focusing on diagnostic and prescripti/e attention to detai- This is faciitated through Yes
BankFs Technoogy eadership Ldei/ering pro/enA easy*to*use soutions for 5o/ernment
.ndertakings and agencies- Yes Bank has pro/ided financia and ad/isory ser/ices to
$inistries of the .nion 5o/ernmentA State 5o/ernmentsA Centra and State 2ubic Sector
.ndertakings &2S.Fs, and Agencies-
;4
!n a short span of o/er three and a haf years the 5o/ernment Reationship $anagement
&5R$, team has de/eoped robust reationships #ith o/er ;(( entities- The 5R$ team is
committed to the core /aues of cient orientationA inno/ation and superior ser/ice
e=perience that e=empify a Businesses at Yes Bank- 5R$ team is pro/iding the
:no#edge Ad/isoryA LiCuidity $anagement and !n/estment 2roductsA Transaction
BankingA trade financesA cash management ser/icesA Treasury ser/icesA Fore=
RemittancesA debt capita marketsA in/estment managementsA corporate saary accountsA
Ad/isory structured transactionsA term oansA and cash credit imits to /arious go/ernment
operations ike !FFCOA SA!LA Airport Authority of !ndiaA !OCLA 3%2LA 92CLA Bridge 8
Roof co-&!ndia, td and many more-
B&1ine11 S!r)!e$5
:no#edge BankingD * One of the strengths and differentiating features of Yes Bank is its
kno#edge banking approach that is the essence of a offerings to its customers-
:no#edge has been institutionaiEed as a key ingredient in a interna and e=terna
processes and utiiEed to create customiEed soutions for the cientsF specific
reCuirements-
Technoogy and OperationsD * As a ne# generation BankA Yes Bank has the ad/antage of
accessing the atest a/aiabe technoogy- The Bank has taken a caibrated decision to
in/est in the best !T system and practices in order to make its technoogy patform a
strategic business too for buiding a competiti/e ad/antage-
Responsibe BankingD *Yes Bank has a /ision to champion HResponsibe BankingF in
!ndiaA #here the concepts of Corporate Socia Responsibiity &HCSRF, and sustainabiity
are integrated in its Business focus-
Business LinesD *Yes Bank has four distinct business segments to effecti/ey ser/ice the
differentiated needs of its targeted customers-
;<
Corporate and !nstitutiona Banking &C8!B,D *To cater to the needs of arge corporate 8
institutiona cientsA $3CFsA go/ernment companies and 2S.Fs- Bank targets C8!B
customers through its mutifunctiona branches in the key metropoitican cities-
7merging Corporate Banking &7CB,D *!t is dedicated to partner #ith gro#th*focusedA
fast*paced enterprisesA #hich are emerging as a eader in their respecti/e business areas-
Business BankingD *To cater to the needs of the sma and medium enterprises &S$7,A
Yes Bank has set up a dedicated business unit to focus on dei/ering superior banking
soutions speciay designed to meet the /arying and dynamic needs of its S$7 cients-
Retai Banking and Beath $anagementD *The Bank intends to de/eop Retai Banking
into a key /aue dri/er- Yes Bank offers its customers choice 8 con/enienceA refected in
its branch ayout 8 designA product feature IdesignA options of distribution channes and
superior technoogy enabed ser/ice Cuaity- Yes Bank predominanty offers /aue added
retai iabiity and third party #eath management products as #e as retai asset
offerings through its saes and ser/ice net#ork inked to its branches-
;>
2ri/ate BankingD * Yes Bank is focusing on personaiEed reationship banking for its top
end 9igh 3et #orth customersA supported by structured financia soutions taior*made to
suit the needs of such customers-
2roduct inesD * Yes Bank offers a #ide range of fee*based products to corporate and
business banking customers to ensure a high degree of cross*se to cients-
Financia $arketsD *Yes Bank financia markets #as ranked second in the HBest for
currency strategyF and Hbest for technica anaysisF categories at the Asia $oney '((<
foreign e=change po for !ndia-
Transaction BankingD *Yes Bank Transaction banking group has adopted a consutati/e
approach and focus on kno#edge and reationship banking to enabe customers to
address strategic financia and operating needs in the domain ofD
Borking capita and iCuidity management
Asset management
Treasury integration
7=posure and risk management
Yes Bank proposes to appy industry kno#edge and superior technoogy for offering
inno/ati/e structured soutions integra to a companyFs financia suppy chain-
;)
Yes !nternationa BankingD * !t offers a compete suite of internationa banking products
and ser/icesA dri/en by state*of*the art technoogyA #hich incudes %ebtA Trade financeA
corporate financeA !n/estment banking and business ad/isory ser/icesA treasury and
goba !ndian banking- The Bank aso pans to e/erage its internationa presenceA for its
capita raising acti/ities- These ser/ices #i initiay be through partnerships #ith
internationa banks and financia institutions foo#ed by the estabishments of branches
and representati/e officesA as per reguatory appro/as-
Brand CreationD * The Bank beie/es that its differentiation begins #ith its ser/ice and
trust mark FY7SF- HY7SF represents the bank true spirit of being ser/ice*oriented- The
HY7SF brand creation effort is supported by HTriton CommunicationsFA the principa
ad/ertising agency and HAd factors 2RFA the BankFs pubic reation consutant-
Ke5 Me4%er1 "6 Ye1 B)n? M)n)$e4en! Te)4
NAME DESIGNATION
Mr0 R)n) K)3""r M)n)$in$ Dire+!"r @ CEO
Mr0 S&ni( G&()!i Gr"&3 Pre1i2en! < C@IBA Tr)n1)+!i"n
B)n?in$
Mr0 Dee3)? G)22#5)n Gr"&3 Pre1i2en! GRM Te)40
Mr0 S&4i! G&3!) C"&n!r5 He)2 B E4er$in$ C"r3"r)!e
B)n?in$
;?
Mr0 A("? G&3!) C"&n!r5 He)2 B (i6e 1+ien+e1 @
!e+#n"("$5
Mr0 R)Cni1# D)!!) C"&n!r5 He)2 BS4)(( %&1ine11 %)n?in$
$r"&3
Mr0 S&%ir Bi1#! C#ie6 Ri1? O66i+er
Mr0 S)nC)5 A$$)r)( C"&n!r5 He)2 BCre2i! Ri1?A B&1ine11
B)n?in$
Mr0 V)r&n T&(i Pre1i2en! B&1ine11 B)n?in$
Ke5 Hi$#(i$#!1 @ Mi(e1!"ne1 "6 Ye1 B)n?0
N"v 9::> In+"r3"r)!i"n "6 YES BANK Li4i!e2
M)5 9::= RBI Li+en1e !" +"44en+e %)n?in$
%&1ine11
De+ 9::/ R)n?e2 N"0> in !#e B&1ine11 W"r(2
S&rve5 "6 In2i)71 Be1! (i1!e2 B)n?1
M)r 9::. R)n?e2 N"09 )4"n$ Ne Priv)!e Se+!"r
B)n?1 in !#e Fin)n+i)( ED3re11 1&rve5
De+ 9::. W"n EBe1! CSR 3r)+!i+e ))r2 9::.7
De+ 9::. W"n EIT 3e"3(e ))r2 9::.7
J)n 9::F /: "3er)!i"n)( %r)n+#e1 )+r"11 In2i)
;+
M)r 9::F R)n?e2 N"0> )4"n$ Ne Priv)!e Se+!"r
B)n?1 in !#e Fin)n+i)( ED3re11<E@Y
1&rve5 @ "ver)(( G, "n +re2i! H&)(i!5 @
G9 "n Gr"!#
A3r 9::F /. "3er)!i"n)( %r)n+#e1 )+r"11 In2i)
'(
INDUSTRY PROFILE
The odest bank in !ndian Banking industry is the State Bank of !ndia" being estabished
as the Bank of Benga" in Cacutta in 0une ;?(>- The first fuy !ndian o#ned Bank #as
the Aahbad Bank"A #hich #as estabished in ;?><- By the ;+((sA the market e=panded
#ith the estabishment of Banks such as 2un@ab 3ationa Bank"A in ;?+< in Lahore and
Bank of !ndiaA in ;+(>A in $umbai- The Reser/e Bank of !ndia" formay took on the
responsibiity of reguating the !ndian banking sector from ;+6<- After !ndiaFs
independence in ;+4)A the Reser/e Bank #as nationaiEed and gi/en broader po#ers- !n
the eary ;++(Fs the then 3arsimha Rao go/ernment embarked on a poicy of
iberaiEation and ga/e icenses to a sma number of pri/ate BanksA #hich came to be
kno#n as 3e# 5eneration tech*sa//y banksA #hich incuded banks such as 5oba Trust
';
Bank &the first of such generation banks to be set up, #hich ater amagamated #ith
Orienta Bank of CommerceA .T! Bank &3o# re named as A=is Bank,A !C!C! Bank and
9%FC Bank- This mo/eA aong #ith the rapid gro#th in the economy of !ndiaA kick
started the Banking sector in !ndiaA #hich has seen rapid gro#th #ith strong contribution
from a the three sectors of BanksA namey
5o/ernment BanksA
2ri/ate BanksA and
Foreign Banks
The ne=t stage for the !ndian Banking has been set up #ith the proposed rea=ation in the
norms for Foreign %irect !n/estment &F-%-!-,A #here a foreign in/estors in banks may be
gi/en /oting rights #hich coud e=ceed the present cap of ;(MA at present it has gone up
to 4+M #ith some restrictions- The ne# poicy shocks the banking sector in !ndia
competey- BankersA ti this timeA #ere used to the 4*>*4 method &borro#ing at 4MJ end
at >MJ go home at 4, of functioning- The ne# #a/e ushered in a modern outook and
tech*sa//y methods of #orking for traditiona Banks- A this ed to boom in !ndia-
2eope @ust not demanded more from their Banks but aso recei/ed more-
!n $arch '((>A the Reser/e Bank of !ndia ao#ed Barburg 2incus to increase its stake
in :otak $ahindra Bank &a pri/ate sector bank, to ;(M- This is the first time an in/estor
has been ao#ed to hod more than <M in the pri/ate sector Bank since the RB!
announced norms in '((< that any stake e=ceeding <M in the pri/ate sector banks #oud
need to be /etted by them- !n &'((),A banking in !ndia is generay fairy mature in terms
of suppyA product range and reach*e/enA though reach in rura !ndia sti remains a
chaenge for the pri/ate sector and foreign Banks- !n terms of Cuaity of assets and
capita adeCuacyA !ndian Banks are considered to ha/e ceanA strong and transparent
baance sheets reati/e to other Banks in comparabe economies in its region- The
Reser/e Bank of !ndia is an autonomous bodyA #ith minima pressure from the
go/ernment- The stated poicy of the Bank on the !ndian Rupee is to manage /oatiity
but #ithout any fi=ed e=change rate and this has mosty been true-
Bith the gro#th in the !ndian economy e=pected to be strong for Cuite some time
especiay in its ser/ice sector*the demand for Banking ser/icesA especiay retai bankingA
''
mortgages and in/estment ser/ices are e=pected to be strong- One may aso e=pect
$8AFsA takeo/ersA and asset saes-
CurrentyA !ndia has ?? schedued commercia banks &SCBs,
* '? pubic sector banks &that is #ith the go/ernment of !ndia hoding a stake,A
* '+ pri/ate banks &these do not ha/e go/ernment stakeJ they may be pubicy isted
and traded on stock e=changes,
* And 6; foreign banks-
They ha/e a combined net#ork of o/er <6A((( branches and ;)A((( AT$Fs-
According to a report by !CRA imitedA a rating agencyA the pubic sector banks hod )<M
of tota assets of the banking industryA #ith the pri/ate and foreign banks hoding ;?-'M
and >-<M respecti/ey- The annua gro#th in bank credit to the commercia sector is at
'<-4M as on $arch 6;A '(() and #as o#er than ')-'M against pre/ious year- Ti '(;(A
retai banking is e=pected to gro# at a CA5R &compounded a/erage gro#th rate, of '?M
to touch a figure of !3R +A)(( biion- This reCuires e=pansion and di/ersification of
retai product portfoioA better penetration and faster ser/ice mechanism-
The report on Retai Banking industry in !ndia co/ers industry segments ike housing
oanA auto oanA persona oanA education oanA consumer durabe oanA credit card and
reguatory frame #ork for retai Banks is aso discussed- The report gi/es retai banking
industryFs current performance and future outook- Tota '' ma@or retai Banks in !ndia
are co/ered in terms of their performanceA strategy and outook- !n absoute termsA !ndiaFs
banking sector en@oyed reasonabe gro#th through the year to %ecember 6; '(()- !n
oca currency termsA tota assetsA tota oans and tota deposits increased by '6MA ';MA
and '>MA respecti/ey- The oanIdepositA oanIasset ratio fe #hie the oanI5%2 ratio
rose-
S!)!e B)n? "6 In2i) 'SBI*

State Bank of !ndia is the !ndiaFs argest Bank- !t has argest branch net#ork a
o/er the country #ith its specia products ike
'6
2ersona Banking
%eposit Schemes
2ersona Finance
AgricuturaIRura Banking
$icro Credit
Regiona Rura Bank
3R! Ser/ices
!nternationa Banking
Trade Finance
$erchant Banking
Correspondent Banking
Corporate Banking
$id Corporate 5roup
2ro@ect Finance
Sma 8 $edium 7nterprises &S$7Fs,
5o/ernment Business
2ubic 2ro/ident Fund
SB! e*Ta=
Ser/ices
!nternet Banking
$obie Banking
The SB!Fs po#erfu corporate banking formation depoys mutipe channes to dei/er
integrated soutions for a financia chaenges faced by the corporate uni/erse- The
Corporate Banking group and the 3ationa Banking group are the primary dei/ery
channes for corporate banking products- The Corporate Banking 5roup consists of
dedicated Strategic Business .nits that cater e=cusi/ey to specific cient groups or
speciaiEe in particuar product custers- Foremost among these speciaiEed groups is the
Corporate Accounts 5roup &CA5,A focusing on the prime corporate and institutiona
cients of the countryFs biggest business centers- The others are the 2ro@ect Finance unit
'4
and the Leasing .nit- The 3ationa Banking 5roup aso dei/ers the entire spectrum of
corporate banking products to other corporate cientsA on a nation#ide patform-
C"43(e!e R)n$e "6 Pr"2&+!1 )n2 Servi+e1
The SB! offers an e=hausti/e range of financia products and ser/ices that ans#ers any
business or market circumstanceA backed by an assuback e=pertise in customiEing the
product to meet the most sensiti/e specificities of each cient and each business conte=t-
!ts team of highy skied and e=perienced product speciaists can hep its customers in
forecast structure compe= transaction reCuirements-
T#e SBI E2$e
Commanding unsurpassed respect and egacy in the !ndian financia e=panseA the SB! is
committed to pro/ide the financia soutions that e=tract ma=imum /aue from business
and market situations-
Bhie the Bank is strongy positioned to structure financia packages that anticipate the
changing business en/ironmentA its /ast net#ork*the #ordFs argest*ensures dei/ery
channes of unmatched reachA both in !ndia and abroad-
W"r?in$ C)3i!)( Fin)n+e
SB! offers #orking capita finance to meet the entire range of short term fund
reCuirements that arise #ithin a corporate day to day operationa cyce- The SB! #orking
capita oans hep the companies in financing in/entoriesA managing interna cash fo#sA
supporting suppy chainsA funding productionA and marketing operationsA pro/iding cash
support to business e=pansion and carrying current assets-
SB!Fs #orking finance products comprise a spectrum of funded and non*funded faciities
ranging from cash credit to structured oansA to meet the different demands from a
segments of industryA trade and the ser/ices sector- Funded faciities incude cash creditA
demand oan and bi discounting- %emand oans are considered aso under the FC3R &B,
'<
&Foreign currency from 3on Resident, scheme- 3on*funded instruments comprise etters
of credit &inand and o/erseas, as #e as bank guarantees &performance and financia, to
co/er ad/ance paymentsA bid bonds etc-
Pr"Ce+! Fin)n+e
The SB! has formed a dedicated 2ro@ect Finance Strategic Business .nit to assess credit
proposas from and e=tend term oans for arge industria and infrastructure pro@ects-
Apart from thisA pro@ect term oans for medium siEed pro@ects and simiar cients are
dei/ered through the CA5 &Corporate Accounts 5roup, and 3B5 &3ationa Banking
group,-
!n generaA pro@ect finance co/ers 5reenfied industria pro@ectsA capacity e=pansion at
e=isting manufacturing unitsA construction /entures or other infrastructure pro@ects-
Capita intensi/e business e=pansion and di/ersification as #e as repacement of
eCuipment may be financed through the pro@ect term oans-
2ro@ect finance is Cuite often channeed through specia purpose /ehices and arranged
against the future cash streams to emerge from the pro@ect- The oans are appro/ed on the
basis of strong in house appraisa of the cost and /iabiity of the /entures as #e as the
credit standing of promoters-
De6erre2 P)54en! G&)r)n!ee 'DPG*
SB! can e=tend deferred payment guarantees to industria pro@ects for obtaining imported
eCuipment- The %25 is a standby credit guaranteeing deferred paymentsA usuay for
payments for capita goodsA turnkey contracts etc-
C"r3"r)!e Ter4 L")n
The SB! corporate term oans can support company in funding ongoing business
e=pansionA repaying high cost debtA technoogy up gradationA R8% e=penditureA
e/eraging specific cash streams that accrue into the companyA impementing eary
retirement schemes and suppementing #orking capita- Corporate term oans can be
'>
structured under the FC3R &B, scheme as #eA #ith the option of s#itching the currency
denomination at the end of the interest periods- This #i hep you take ad/antage of
goba interest rate trends /is*N*/is domestic rates to minimiEe your debt cost- The BankFs
corporate term oans are generay a/aiabe for tenures from three to fi/e yearsA
synchroniEed #ith your specific needs- SB! corporate term oans can ha/e a buet or
periodic repayment schedue as reCuired by the cient- The repayment mode may be
inked to the cash accruas of the company- The BankFs e=pert credit cre# gauges the
appicantFs particuar fund reCuirements and e/auates the companyFs credit #orthinessA
factoring in the cash fo#s generated by it-
S!r&+!&re2 Fin)n+e
SB! structured finance in/o/es assembing uniCue credit configurations to meet the
compe= fund reCuirements of arge industria and infrastructure pro@ects- Structured
finance can be a combination of funded and non*funded faciities as #e as other credit
enhancement toosA ease contracts for instanceA to fit the muti ayer financia
reCuirements of arge and ong*gestation pro@ects-
Being !ndiaFs argest bank and #ith the rich e=perience that it brings #ith itA SB!
commands formidabe e=pertise in engineering financia packages that address compe=
reCuirements #ith minimum risk- FurtherA SB! has firm reationships across the financia
map of the #ordA #hich can be e/eraged to structure soutions that may necessitate the
participation of se/era credit agencies-
De)(er Fin)n+in$
SB! e=tends financia support to the corporate distribution net#orkA by pro/iding both
#orking capita finance and term oans to seect deaers of identified companies- This
gi/es deaers to e/erage their business reationship #ith ma@or corporate to a/ai o#
cost credit- AsoA this type of financia soutions ao#s the corporate negotiate a better
price #ith deaers- %eaer financing may be e=tended in the bi discounting form or
simpy as cash credit-
C#)nne( Fin)n+in$
')
Channe financing is an inno/ati/e finance mechanism by #hich the bank meets the
/arious fund necessities aong customer suppy chain at the suppierFs end itsefA thus
heping them sustain a seamess business fo# aong the arteries of the enterprise-
Channe finance ensures the immediate reaiEation of saes proceeds for the SB! cientFs
suppierA making it practicay a cash sae- On the other handA the corporate gets credit for
a duration eCuaing the tenure of the oanA enabing smoother iCuidity management- SB!
has the #ordFs argest banking net#ork of o/er +A((( branches and this enabes it to
dei/er the financia soution at suppiers doorstepA across the span of the country-
EH&i34en! Le)1in$
The SB!Fs has depoyed a dedicated strategic business unit for ease financing that is
richy e=perienced in arranging ease contracts for procuring e=pensi/e eCuipment for
cients pro@ect or pant- At SB!A ease agreements as stand aone contracts or as part of a
structured package are arranged-
L")n S5n2i+)!i"n
The SB! e/erages its /ast net#ork of reationships to arrange syndicated credit products
for corporate cients and industria pro@ects- Bith its rich e=perience and strong
reputationA SB!Fs syndication desk can assembe arge oan packages in/o/ing a ring of
reputed financia entitiesA domestic and internationaA that match the arge credit
reCuirements of infrastructure pro@ects-
In2&1!ri)( Cre2i!@ Inve1!4en! C"r3"r)!i"n "6 In2i) ICICI B)n?
!C!C! Bank is !ndiaFs second argest bank #ith tota assets of Rs-6A ++)-+< Biion
&.SO;(( biion, at $arch 6;A '((? and profit after ta= of Rs-4;-<? biion for the year
ended $arch 6;A '((?- !C!C! Bank is second amongst a the companies isted on the
'?
!ndian stock e=changes in terms of free foat market capitaiEation- The Bank has a
net#ork of about ;6(? branches and 6+<( AT$s in !ndia and presence in ;? countries-
!C!C! Bank offers a #ide range of banking products and financia ser/ices to corporate
and retai customers through a /ariety of dei/ery channes and through its speciaiEed
subsidiaries and affiiates in the areas of !n/estment bankingA ife and non ife insuranceA
/enture capita and asset management- The Bank currenty has subsidiaries in the .nited
:ingdomA RussiaA and CanadaA branches in .nited StatesA SingaporeA BahrainA 9ong
:ongA Sri LankaA Gatar and %ubai !nternationa finance centre and representati/e offices
in .nited Arab 7miratesA ChinaA South AfricaA BangadeshA ThaiandA $aaysia and
!ndonesia- .: subsidiary has estabished branches in Begium and 5ermany-
!C!C! BankFs eCuity shares are isted in !ndia on Bombay Stock 7=change and the
3ationa Stock 7=change of !ndia Limited and its American %epositary Receipts
&A%RFs, are isted on the 3e# York Stock 7=change &3YS7,-
!C!C! Bank #as originay promoted in ;++4 by !C!C! LimitedA an !ndian financia
institutionA and #as its #hoy*o#ned subsidiary- !C!C!Fs sharehoding in !C!C! Bank
#as reduced to 4>M through a pubic offering of shares in !ndia in fisca ;++?A an eCuity
offering in the form of A%Rs isted on the 3YS7 in fisca '(((A !C!C! BankFs acCuisition
of Bank of $adura Limited in a stock amagamation in fisca '((;A and secondary
market saes by !C!C! to institutiona in/estor in fisca '((; and fisca '(('- !C!C! #as
formed to in ;+<< at the initiati/e of the Bord BankA the 5o/ernment of !ndia and
representati/es of !ndian !ndustry- The principa ob@ecti/e #as to create a de/eopment
financia institution for pro/iding medium term and ong term pro@ect financing to !ndian
businesses-
!n the ;++(sA !C!C! transformed its business from a de/eopment financia institution
offering ony pro@ect finance to a di/ersified financia ser/ices group offering a #ide
range of products and ser/icesA both directy and through a number of subsidiaries and
affiiates ike !C!C! Bank in ;+++A !C!C! become the first !ndian company and the first
bank or financia institution from non*0apan Asia to be isted on the 3YS7-
'+
After consideration of /arious corporate structuring aternati/es in the conte=t of the
emerging competiti/e scenario in the !ndian Banking industryA and the mo/e to#ards
uni/ersa bankingA the managements of !C!C! and !C!C! Bank formed the /ie# that the
merger of !C!C! #ith !C!C! Bank #oud be the optima ega structure for the !C!C!
groupFs uni/ersa banking strategy- The merger #oud enhance /aue for !C!C!
sharehoders through the merged entityFs access to o# cost depositsA greater
opportunities for earning fee based income and the abiity to participate in the payment
system and pro/ide transaction banking ser/ices- The merger #oud enhance /aue for
!C!C! Bank sharehoders through a arge capita base and scae of operationsA seamess
access to !C!C!Fs strong corporate reationships buit up o/er fi/e decadesA entry into ne#
business segmentsA higher market share in /arious business segmentsA particuary fee*
based ser/icesA and access to the /ast taent poo of !C!C! and its subsidiaries- !n October
'((;A the boards of directors of !C!C! and !C!C! bank appro/ed the merger of !C!C! and
t#o of its #hoy*o#ned retai finance subsidiariesA !C!C! persona financia ser/ices
imited and !C!C! capita ser/ices imited #ith !C!C! bank- The merger #as appro/ed by
sharehoders of !C!C! and !C!C! bank in 0anuary '(('A by the high court of 5u@arat at
Ahmedabad in $arch '(('A and by the high court of @udicature at $umbai and the
Reser/e Bank of !ndia in Apri '(('- ConseCuent to the mergerA the !C!C! groupFs
financing and banking operationsA both #hoesae and retaiA ha/e been integrated in a
singe entity-
6(
OBJECTIVE OF THE STUDY
M)in "%Ce+!ive:
Ob@ecti/e of the study is to ook for the banking opportunities in FCRA accounts of
charitabe institutions for the Yes Bank-
Bith the increasing number of organiEations taking the FCRA registrationA Bank is
interested in ha/ing the business #ith the 35OFs in %ehi and 3CR-
;- Ob@ecti/e of the study aims at the 6>( degree kno#edge to the target business- !t
incudes the $9A &$inistry of 9ome Affairs,A 35OFs and /arious banks gi/ing such
type of ser/ices to take detai kno# ho# and shoud reach at a decision to be taken by the
bank after concuding the study-
'- To operate the FCRA accounts in accordance #ith the rues and guideines mentioned
in the FCRA ;+)>-

6;
RESEARCH METHODOLOGY
Research in genera refers to the search of kno#edge- One can aso define research as a
scientific 8 systematic coection of information-
!n simpe #ords research is the carefu in/estigation or enCuiry of markets especiay
through search for ne# facts in any branch of kno#edge-
An)(5!i+)( T""(1
$icrosoft 7=ce &2i/otChart Reports,- A 2i/otChart Report is an
interacti/e chart that Cuicky combines and compares arge amounts of
data from tabes in e=ce- 2i/otChart report #as used here to anayEe
reated totasA because there #as a ong ist of figures to sum and there
#as a need to compare se/era facts about each figure- Because a
2i/otChart report is interacti/eA it has fe=ibiity to change the
/ie# of the data to see more detais or cacuate different
summariesA such as counts or a/erages- %rop fieds feature #as
6'
e=tensi/ey used for the report creation- 7ssentiay it is an area in a 2i/otChart report
#here #e can drop fieds from the Fied List diaog bo= to dispay the data in the fied-
DATA COLLECTION
%ata can be coected by using t#o #e kno#n methodsD 2rimary 8 Secondary- !n
primary data coectionA you coect the data yoursef using methods such as inter/ie#s
and Cuestionnaires- The key point here is that the data you coect is uniCue to you and
your research andA unti you pubishA no one ese has access to it- There are many
methods of coecting primary data and the main methods incudeD
Guestionnaires
One*to*one inter/ie#s
5roup inter/ie#s
Obser/ation
Case*studies
%iaries
Critica incidents
2ortfoios
Secondary data is data that has aready been coected by someone ese for a different
purpose to yours- For e=ampeA this coud mean usingD
%ata coected by a hote on its customers through its guest history system
66
%ata suppied by a marketing organiEation
Annua company reports
5o/ernment statistics-
Pri4)r5 2)!) +"((e+!i"n 4e!#"2 &1e2 6"r !#i1 3r"Ce+!0
! used Cuestionnaire method #hich is aso kno#n as scheduing method for primary data
coection in the research process- To kno# the e=act detais regarding FCRA accounts in
Banks 6>( degree approach is being used as the FCRA departmentA BanksA and 35OFs
are sur/eyed to take the reCuired
Secondary %ata is aso used for the purpose of competion of pro@ect #hich incudes
!nternetA Centre for poicy ResearchA and FCRA department-
64
SAMPLING AND SAMPLING DESIGN
The procedure by #hich a fe# fieds are chosen from the data to be studied in such as
#ay that the sampe can be used to estimate the same characteristics in the tota is
referred to as samping-
The ad/antages of using sampes are that it is much ess costyA Cuicker andA if seected
properyA gi/es resuts #ith kno#n accuracy that can be cacuated mathematicay- 7/en
for reati/ey sma sampesA accuracy does not suffer e/en though precision or the
amount of detaied information obtainedA might- These are important considerationsA
since most research pro@ects ha/e both budget and time constraints-
Samping process is taking a sampe out of the uni/erse popuation to take a decision
regarding the popuation- !nstead of sur/eying the #hoe popuation #e take ony a fe#
persons for our topic to ha/e a genera idea of the sub@ect reated-
!n the pro@ect ! took a sampe of three Banks for a genera idea of the FCRA accounts and
made our study reach a concusion-
These three banks are
6<
,0 HDFC BANK
'- STANDARD CHARTERED
>0 CORPORATION BANK
For the charitabe institutions and 35OFs #ho are reporting to the FCRA %epartment to
be studied ! took a sampe of ;; organiEations from the 3CR-
TIME PERIOD OF STUDY
0uneA +*;4A '((?
5athering information regarding the ActA RuesA BiA #ith hep of the secondary
mediums-
0uneA ;>*;?A '((?
$eeting FCRAA $inistry of 9ome Affairs officia
coecting the necessary 8current information regarding the Act-
0uneA ;+*'6A '((?
1isiting /arious banks ike Standard Charted BankA 9%FC BankA Corporation Bank and
other banks #hich offer specia ser/ices to the charitabe institutions in regards to FCRA
8 coecting the necessary detais-
6>
0uneA '4*4 0uyA '((?
$eeting the officias of /arious charitabe trusts and such institutions #ho are registered
#ith FCRA and ha/ing the present banking arrangements-
AREAS OF STUDY
Study of the pro@ect started from the Regiona office of the Bank at 4?A 3ayaya $arg
Chanakyapuri 3e# %ehi- $ain centre of the study #as around the office ike /isiting the
FCRA office from the Bank and then meeting the different charitabe institutions and aso
the different Banks pro/iding the same ser/ices in the area of %ehi and 3CR-
Area incudes the different parts of 3e# %ehi fe# of them are
Connaught Circus
Safdar@ung 7nca/e
0anakpuri
Ashok paace
Bhai 1eer Singh $arg
Lodhi Road
6)
ANALYSIS AND INTERPRETATION
;- Foreign receipt in the present year-
6?
no foreign
foreign reci
never
3o Foreign Receipt in 2resent ')M
Foreign Receipt in 2resent )6M
3e/er recei/ed foreign funds (M
This pie chart sho#s that ony ')M of the organiEations ha/e not recei/ed any foreign
funds in the current year and )6M organiEations are recei/ing funds continuousy and
there is no organiEation &(M, #hich has ne/er recei/ed any foreign fund so far-
'- %onor from #hich country-
%onor from a o/er the #ord- <<M
%onor ony from .SA- ')M
%onor from .SA 8 others- ;?M

6+
The figure gi/es an idea of the sampe that <<M of the organiEations sur/eyed are
recei/ing funds from a o/er the #ord #here as the ')M organiEations are ha/ing
foreign receipts or donations or members sending funds to !ndia are ony from .SA- ;?M
of the organiEations are as such they recei/ing funds from .SA 8 others ike .:A
3etherands etc-
6- %eaing #ith #hich Bank for FCRA accounts-

P#0lic $ector
Pri)ate $ector
1orei'n 2an3
4(
Account in 2ubic Bank- <<M
Account in 2ri/ate Bank- ')M
Account in Foreign Bank- ;?M
From the study of /arious organiEations it has been concuded that the <<M organiEations
are deaing #ith the pubic sector Banks #hich incude !ndian o/erseas BankA State Bank
of 9yderabadA 23BA 28S Bank and ')M organiEations reported to ha/e their Bank
account #ith the pri/ate sector Banks it has !C!C! BankA Federa BankA Cathoic Syrian
Bank Ltd- Ony ;?M of the organiEations are ha/ing Bank Account in Foreign Banks
#hich has AB3 A$ROA American e=press Bank-
4- Satisfaction e/e #ith present Banker-
4;
2oor +M
A/erage +M
5ood )6M
7=ceent +M
From the figure sho#n abo/e it is cear that most of the organiEations /isited are satisfied
#ith the ser/ices of present Banker as the )6M of the institutions ha/e marked their
Banker as good ser/ice pro/ider and +M each has been gi/en to the 2oor ser/iceA
a/erageA8 e=ceent respecti/ey-

<- Foreign 7=change con/ersion charges taken by Bank-
/o char'es
/o!inal
4ea)il(
3o e=tra charges- ')M
ChargeA but 3omina- <<M
Charge 9ea/iy- ;?M
4'
Anaysis for the foreign e=change charges is sho#n in the figure that ')M of the
organiEations are not paying any e=tra charges for the foreign receipts in their FCRA
accountsA <<M of the organiEations are paying the charges but they take them as a
nomina charge for the transactionA ony ;?M of the organiEations are paying hea/iy on
the foreign e=change con/ersion to the Banks-
>- $ore Ser/ices desired from the Banking sector-
0ust Satisfied need more- 4>M
Be satisfied- ')M
%esire more benefits- ')M
46
$ost of the OrganiEations /isited report to be @ust satisfied #ith the ser/ices pro/ided by
their present banker as the figure reaches up to 4>M and aso they need more from the
banking industry- ')M of the institutions reported to be #e satisfied #ith their bankerA
same is the percentage &')M, in the category #hich desires more from the banking sector
in their product-
)- !n/estment ad/isory an important /aue added-
!n/estment ad/isory reCuired- <<M
O#n separate ad/isory body- ')M
Aready getting- ;?M
44
Figure abo/e sho#s about the <<M of the organiEations are interested in the in/estment
ad/isory and ')M of the organiEations are ha/ing their o#n separate body for the purpose
of in/estmentsA ;?M of the organiEations are aready recei/ing such types of ad/ices-
?- Reaction to proposed FCR bi '((>-
!n fa/or of Bi '((>- ;?M
Against the Bi '((>- 6>M
2artiay fa/or partiay against- 4>M
A ma@or proportion of the organiEations ha/e t#o sided opinion on the FCR Bi '((> as
fe# of the proposas ike mutipe bank accounts instead of singe bank account at
4<
presentA are good for the organiEations but fe# proposas are not fa/orabe for the
#orking of the organiEations so it is 4>M #ho are partiay fa/oring it and partiay
opposing it- But 6>M of the organiEations are totay against the BiA 8 ;?M are in the
fa/or of the Bi they say #hat go/ernment do is fine-
+- ReCuirement in rues of #orking #ith Fcra-
3o ReCuirement to change in Rues- ?'M
ReCuired to be amended- ;?M
$ost of the organiEations are #e satisfied #ith the current rues of the department as
?'M of the organiEations do not need any change in rues of FCRA ony a sma
proportion i-e- ;?M #ants to ha/e some amendments in the rues of FCRA-
4>
;(- Auditing done by FCRA %epartment for the organiEation-

/o +#ditin' 0( 1C.+
+#ditin' 0( 1C.+ in Past

3o auditing by FCRA- ?'M
Auditing in 2ast- ;?M
4)
According to the ?'M organiEations in the 3CR area no auditing is done by the FCRA
department separatey for their organiEationsA the ony thing is they fie the FC*6 return at
the end of each year audited by the certified chartered accountant and for the ;?M
organiEations FCRA department has done auditing some time in past-
;;- 2robem faced in #orking #ith FCRA-
Pro0le! aced
/o *ro0le!.
3o 2robem faced ;((M
2robem Faced (M
4?
Sur/ey tes there is no probem in #orking for the organiEations #ith the FCRA
department as ;((M of the organiEations tod that there is no probem in #orking as per
rues of $9A-
;'- Response e/e of FCRA department-
2oor (M
A/erage ;?M
5ood ?'M
7=ceent (M
4+
Sur/ey sho#s that FCRA department is /ery good at response e/e to the organiEations
as ?'M of the respondents ha/e marked as good for the FCRA department 8 ony ;?M of
the organiEations mark them as a/erage as they said officers sitting in the FCRA office
are not fuy trained they shoud be perfect in that-
;6- .se of onine ser/ices for the fiing of returns by the 35OFs-
.sing Onine Ser/ices 4<M
3ot .sing Onine Ser/ices <<M
<(
Figure tes about the use of onine ser/ices for contacting the FCRA department for
fiing the FC*6 returns or other returns is about 4<M by the 35OFs and <<M of the
35OFs are @ust using the traditiona #ay of fiing the return to the FCRA department-
;4- Reaction on the 2roposed Rene#a Fees on the FCRA registration in Bi
'((>-
Against the Bi- >4M
Fa/or the Bi- +M
3eutra for Bi- ')M
<;
Figure tes about the /ie# point of the organiEations to#ards the proposa of rene#a
fees on the certificate of the FCRA after e/ery fi/e years in order to eiminate the
organiEations from the certification those #ho are not responding to the department
reguaryA >4M of the organiEations are against the rene#a proposa as they are reguary
reporting to the departmentA +M are in fa/or as they say #hate/er go/ernment do is
arightA ')M of the sampe respond that they are neutra to#ards Bi'((>-
C"43)ri1"n "6 !#e FCRA )++"&n!1 "66ere2 %5 2i66eren! B)n?10
S!)n2)r2 C#)r!ere2 B)n?
Sa/ings Account
Cash #ithdra#a ao#ed
Specia team targeting 35OFs for FCRA accounts-
Compiance team at Bombay is reporting RB! and centra go/ernment for $!S of
the accounts-
Specia care in case of 2rior permission obtained by organiEation from centra
go/ernment-
HDFC B)n?
Sa/ings Account
Cash #ithdra#a not ao#ed
Consutancy ser/ices as e=tra benefits to the account-
Specia team for FCRA accounts-
Reporting reguary to centra go/ernment and RB!-
<'
Specia care in case of 2rior permission obtained by organiEation from centra
go/ernment-
C"r3"r)!i"n B)n?
Sa/ings Account
Cash #ithdra#a ao#ed
3o specia team-
!nternationa Banking %i/ision &!B%, is contacting centra go/ernment for FCRA
accounts $!S-
Specia care in case of 2rior permission obtained by organiEation from centra
go/ernment-
CONCLUSION AND SUGGESTION
CONCLUSION
On the basis of study it is concuded that going to#ards the FCRA product #i be a good
mo/e by the bank as there is arge number of 35OFs in 3CR region #hich are acti/ey
performing their pro@ectsA as they are recei/ing foreign funds through FCRA accounts in
banks then it can be a source of foreign funds for the bank- There #ere ;;'( FCRA
accounts #hich reported to the department in year '((<*(> and these accounts ha/e
recei/ed ;<<) crores in 3CR-
SUGGESTION
1A3! &1ountary Action 3et#ork !ndia, is the acti/e 35O forum in 3CRA !t is
better to introduce our ne# product through Forum and target our potentia customers
through this patform- !n this forum most of the 35OFs and charitabe institution are
<6
membersA in this #ay Yes Bank can ha/e business #ith them- Specia team is reCuired to
target the FCRA accounts of pubic sector banks as they are not ha/ing any specia team
to hande themA but pri/ate sector banks ike Standard CharteredA 9%FC are ha/ing
specia team for this segment- YBL need to ha/e
Specia FCRA product
Specia team
Target to pubic sector banks ha/ing FCRA accounts
Reationship #ith FCRA department

<4
FCRA
%!FF7R73T
BA3:S
C9AR!TABL7
!3ST!T.T!O3S-
<<
LIMITATIONS OF THE STUDY
;- Gener)( 1&rve5 i1 4"re %i)1e2: 5enera Sur/ey is more biased because fe#
charitabe institutions #ere not ready to gi/e the e=act financia detais-

'- Le11 re13"n1ive +"44&ni+)!i"n: 5enera Sur/ey #as found to be ess
responsi/e because of the reason that institutions 8organiEations did not #ant to
respond to the Cuestionnaire due to ack of time 8 non #iingness-
6- Ti4e +"n1&4in$: The 5enera Sur/ey #as time consuming because it take time
to reach to different charitabe institutions 8 ask them certain reated Cuestions in
there different areas-

<>
ANNEXURE
!n the pro@ect ! took the sampe of ;; charitabe institutions in the 3CR for the purpose of
kno# ho# of the FCRA account #orking-
,0 CARITAS INDIA
CBC! CentreA Ashok 2aaceA
$r- 3-$-1aan &Finance $anager,
90 ADOPT
>(>A Ansa Bha#an :-5-$arg
$s- Apana $ukher@ee
>0 DEEPALYA
4>A insti- AreaA %*Bock 0anakpuri
$r- $athe# 0ose &%eputy %irector Finance,
=0 CHETANALYA
+*;(A Bhai /ir Singh $arg
$r- Thomas :-S-&Finance $anager,
;0 Cen!re 6"r W"4en71 Deve("34en! S!&2ie1
'<A Bhai /ir Singh $arg
$r- 1-3- Soumya 3arayan &Administrati/e Officer,
/0 De(#i Bi%(e Fe(("1#i3
''A Bhai /ir Singh $arg
$r- Samson $asih &Administrati/e Assistant,
.0 M)r!#"4) C#&r+# S"+ie!5
'>A Bhai /ir Singh $arg
Re/- 0ayan Thomas
F0 N)!i"n)( In1!i!&!e "6 Ur%)n A66)ir1
!ndia 9abitat Centre 4B ;
st
foor
$r- %i#an Singh &Senior Accountant,
-0 B#)i Vir Sin$# S)#i!5) S)2)n
<)
Bhai /ir Singh $arg
(;;*'66>6<;(
,:0 F"&n2)!i"n 6"r P)nC)% S!&2ie1
Bhai /ir Singh $arg
(;;*'664)+;+
,,0 S+ien+e O(543i)2 F"&n2)!i"n
B*? Ta@ apartments Safdar@ung
$r- 2artap
IUESTIONS FOR CHARITABLE INSTITUTIONS0
;- Any sort of foreign income to the trust or any foreign donorP
'- Foreign donor is from #hich countryP
6- %eaing #ith #hich Bank for the foreign receiptP
4- Satisfaction e/e #ith the ser/ices pro/ided by your present BankerQ
a, 2oor
b, A/erage
c, 5ood
d, 7=ceent
<- Bhat type of ser/ices is desired from the BankP
>- Reactions to the F-C-R biA '((>-
)- Any reCuirement regarding FCRA by you-
?- Any auditing done by the FCRA departmentP
+- Onine ser/ices gi/en by the FCRA department is hepfu to organiEation-
a, Yes
b, 3o
<?
;(- Fees on the FCRA registration is proposed in the bi '((>-Bhat is your reaction to
thatP
;;- Response e/e of the FCRA department to the Cueries and fiing of different returnsP
a, 2oor
b, A/erage
c, 5ood
d, 7=ceent
;'- Any probem faced in #orking of organiEation #ith rues of FCRA in FC*6 or etc-
FCRA DEPARTMENT IUESTIONS0
;- Basic purpose of FCRA ;+)>P
'- Any change in a# after ;+)>P
6- Bhat is the status of Bi '((>P
4- Reaction of charitabe institutions after the proposed Bi '((>P
<- Banks ha/ing the FCRA accounts ha/e to report to RB! or to FCRAP
>- Auditing process by the FCRA to the charitabe institutionsP
)- Singe bank account is ao#ed for recei/ing the foreign funds- BhyP
?- Fees structure for the registration #ith FCRA or 2rior 2ermission-
+- Any pan for ne# offices in !ndiaP
;(- 6(6'; registered associations in '((< ho# many of them are reporting to youP
;;- Bhat are the po#ers to the officer #hie granting the registrationP
<+
;'- ReCuirements for obtaining the registration from FCRAP
;6- Specuati/e Business" is not ao#ed out of the foreign contribution #hat is the
checking process foo#ed for thatP
;4- Banks ha/ing FCRA accounts ha/e to report reguary are they reporting to youP
;<- Any specifications for opening account in specific BankP
IUESTIONS FOR BANKS0
;- Bhat type of ser/ices your Bank is pro/iding to the Charitabe !nstitutions and
35OFsP
'- %o you ha/e a separate team targeting the 35OFsIcharitabe institutionsP
6- !s that different from the reguar ser/ices on sa/ingIcurrent accountP
4- %o you ha/e FCRA account opened for these 35OFsIcharitabe institutionsP
<- 9o# difficut is it to change from one Bank to the other for your present customer
&35OFsIcharitabe institutions,P
>- 9o# much is the operation difficuties in the reporting of FCRA accountsP
)- Are you reporting to the FCRA department reguary for your FCRA customersP
?- 9o# much ser/ice oriented are these accountsP
+- Bhere does the Bank earn from these accounts*foreign e=change
con/ersionsIcurrent account foats incomeIcharges on transactionIin/estment of
surpus fundsP
>(
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