www.federalbank.co.

in

ISSUE NO 1/2012-2013

MILLIONAIRE FSF: The product of the time

A recurring deposit plan that lets our NRI patrons to invest systematically over a period ederal Bank is an attractive destination of time and makes a or NRIs for their millionaire on maturity. complete banking needs. ACTUAL RETURN UPTO Instalments are made With power packed NRE 14.95* from a part of the products and services, Federal Now, NRIs can earn more on savings, in small Bank remains the preferred their foreign currency savings amounts and hence bank to NRIs. At Federal Bank in rupee deposit. NRE Term will not disrupt the NRI Services, it is our constant Deposit is no longer a low financial planning endeavour to provide products interest bearing deposit and services that will make 100% Tax free & Freely scheme with Federal Bank. banking convenient for you. repatriable NRIs can continue to enjoy NRI relationship managers of Facility to register the tax free benefits and free the bank are deployed in most Standing Instruction repatriation along with the of the gulf countries to bring from SBNRE accounts high return. the services of the bank to the Loan Facility against doorstep of NRIs. In line with balance in the account. this commitment, we now present to you, our NRI Patrons can open the account online using quarterly Customer Newsletter as a part of our Net Banking (FEDNET) NRI Reminiscence program. Period Monthly Maturity Installment Amount 10Year 5,077 1 Million 9 Year 5,944 1 Million NRE TERM DEPOSITS 8 Year 7,041 1 Million 7 Year 8,466 1 Million 6 Year 10,386 1 Million 5 Year 13,096 1 Million 4 Year 17,190 1 Million 3 Year 24,050 1 Million

Calculated based on present interest rates on NRE fixed deposits. Monthly instalments are subject to change on revision of interest rates*conditions apply*

Come avail this excellent opportunity, make regular savings and become millionaires

FEDNET BANKING (Internet Banking) Enhanced

REMITTANCE COMPETANCE

IMPS An instant interbank fund transfer service in which the amount will be credited instantly to the beneficiary. Customer doesnt require 7 % of the total remittance routed to India remembering the beneficiary from abroad is through Federal Bank IFSC code or account number. FedFast In IMPS, key in the Extended Working Hours to NRIs can make Rupee remittance strengthen the remittance beneficiarys mobile number relationship (8 AM to 8 PM and from Gulf countries to the and Mobile Money Identifier working on holidays) (MMID) to do safe and instant beneficiarys account in India. transfer to any bank which is Once the remitter remits money participating in this service. Tie up with almost all the major at the Bank / Exchange house in players in GCC which provides comfort the Gulf, the amount is credited to our Clients to remit money from ONLINE FEDNET PASSWORD their proximity(57 Exchange House &5 to the beneficiarys account with GENERATION USING ATM PIN Banks) Federal Bank or any other Bank To obviate the difficulties in getting FEDNET repin, when within a short span of time. Correspondent banking arrangements( Nostro accounts)with 18 international users forget his/her password banks in different parts of the globe to online password generation 57 Exchange House & 5 Banks deal in 11 major currencies of the using ATM pin is enabled. world. Our representative office at Abu Dhabi is TWO FACTOR AUTHENTICATION (2FA) functioning with the objective of giving quality Currently FedNet transactions are customer service to our customers in the authenticated through Login passwords and Middle East. The Rep Office is headed by a transaction passwords. In order to insulate the Chief Representative Officer, assisted by NRI customer from the threat of password thefts, relationship Managers spread across the GCC Bank has implemented Two Factor Countries Authentication facilities. This provides Abu Dhabi Representative Office customers who subscribe for this facility P O Box No. 112927, greater protection from threat of phishing attacks by registering their frequently used #402, 4th floor, computers or by using the dynamically Emar Building, generated tokens for authentication Al Falah Street, AbuDhabi, UAE Phone: +971 2 6429384, +971 2 6429368 Fax: +971 2 6429386 abdrep@federalbank.co.in

Portfolio Investment Scheme. NRE returns: Record Leap Trade on recognized Indian stock exchanges under the Portfolio Investment Scheme (PIS) through Federal Bank from any corner of the world. Choose World class brokers of your Choice form our List. Easy and convenient way for secondary market investments with the option of online or offline modes of trading. Reduction in STT (Security Transaction Tax) by 20% (from 0.125% to 0.1%) on cash delivery transaction is positive for the market. Customers just need to place the orders, and remaining things will be taken care of by us. 24*7 customer support. For more details visit our website. Feature of Our PIS 1) Online and offline trading facilities available. 2) View facility of Holdings for Federal Bank DP. 3) Internet banking facility for PIS A/c. 4) Zero balance account opening. 5) Competitive rates.

Period 1 year only Above I year to less than 3 years 3year to 5 year

Rate of Interest* 10 9.5

Actual return* 10.38(12 Months) 10.33(24 months) 10.80(35 months) 10.52(36 months) 11.04(48 months) 11.59(60 months) 12.18(72 months) 13.48(96 months) 14.19(108 months) 14.95(120 months)

9.25

100% TAX free, 100% Repatriable, High Returns

The rate and actual returns is for deposits of below 1 Crore. Contact your branch for deposits above 1 Crore.

Remit more and Earn more when the exchange rates are attractive 100 BRANCHES ON A SINGLE DAY On 10 March 2012 the world witnessed the massive organic expansion of Federal Bank on a single day, when we launched our 100 branches and 100 ATMs across the country. Our Hon. Union Finance minister Shri. Pranab Mukherjee formally inaugurated the 100 new branches in a sparkling launch ceremony at ITC Maurya hotel, New Delhi. Ace cricketer and former captain of Indian cricket Team, Shri.Kapil Dev formally launched our 100 ATMS. Let us take this proud moment to express our sincere gratitude to our beloved customers and business partners around the globe for their boundless support and patronage that enabled us to cross the prestigious milestone and to make us the most sought after financial institution delivering the most delightful banking experience.

Fedfast Plus
Fedfast Plus offers you the biggest advantage that the amount sent

from abroad will be directly credited to beneficiary's account in India in seconds. This facility is enabled for Instant Remittance from a Correspondent Bank / Exchange House Al Ahalia Exchange, UAE Al Ansari Exchange, UAE UAE Exchange, UAE Lulu exchange, UAE Al Dar Exchange works, Qatar Modern Exchange, Oman Al Mulla Exchange, Kuwait UAE Exchange, Kuwait

NEWS Union Budget 2012-13 The Union Budget 2012-13 was presented by the Finance Minister in the wake of a challenging business environment and weak global economic conditions. 2011-12 was described as the year of recovery, interrupted. With a somber global outlook, sustained slowdown in Indian GDP growth, high inflation, elevated deficits and low investor confidence, the current year has been testing for the Indian economy. The good news is that, while the GDP achieved of 6.9% was low as compared to that of previous years, comparatively it still put India in the top five economies of the world. Budget 2012 and its impact on NRIs Measure: The government of India will now allow qualified foreign investors access to the Indian corporate debt market. Qualified foreign investors, or QFIs, can be individuals, groups or associations based abroad. Impact: This proposal, when implemented will deepen the country's shallow bond market and also open up a lucrative avenue for foreign individual investors who are keen to participate in India's growth story. But, NRIs will hope for something more. On paper, NRIs were always permitted to invest in Indian corporate bonds. However, it required the issuing companies to enable the option for NRI investors with specific permission with the Reserve Bank of India. Often, companies chose not to do so, restricting access to NRIs. It is hoped that this move will also improve access for NRIs in the corporate bond market. Measure: To introduce mandatory foreign asset reporting; income tax body to have powers to open previous returns of up to 16

years to check for tax evasion Impact: While the intention of this proposal is to bring to book all those who have been evading taxes by stashing their money abroad, one fears that it will create unnecessary reporting requirements and needless harassment for NRIs who have returned to India after a long stint abroad. Measure: The Direct Tax Code (DTC) which was expected to be implemented from April 2012, has been deferred for now Impact: This might come as a relief for NRIs as some of the provisions of the DTC were quite harsh. For instance, under the proposed DTC, any individual (including NRIs/PIO) will become resident, if they are present in India for 60 days or more in the financial year and 365 days or more over a period of four years prior to the financial year and would be liable to pay taxes on their global income. This proposal would have impacted all those NRIs who visited India frequently for personal or business purposes. Measure: To allow electronic voting for shareholders Impact: If the Government allows electronic voting, this will help NRI shareholders to participate more actively. Measure: Gold purchases in India to become expensive; customs duty doubled Impact: If keeping your money in India in the form of gold has been a favorite avenue that might just change. Gold will become more expensive as the FM doubled customs duty.

Disclaimer: The information and opinion contained here in are gathered from various sources including press, without any liability from part of Federal Bank or its employees.

Yours views and suggestion may please be sent to: NRI Division, International Banking, Federal Bank, Marine Drive, Ernakulum 682031 Ph: 0484 2385599, 2385511 Email: nridiv@federalbank.co.in |akhileshp@federalbank.co.in