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Last Modified : Dec 15, 2007 2:04 PM
Frequently Asked Questions
 
FAQs on Credit Cards
FAQs on NRI Services
 



 
 
 
FAQs on Credit Cards

  1. What is a Credit Card ?
    A Credit Card is a convenient payment instrument that enables the cardholder to purchase goods and services without paying in cash or cheque. Our Credit Card works on the “BUY NOW, PAY LATER” principle.

  2. Why should I subscribe to a Credit Card ?
    • Unlike cash, it is not bulky, does not degrade with use and you need not carry loose change
    • It is safer than carrying cash and used only by the owner
    • A single payment for purchases made during the month
    • A systematic accounting of spending & payments
    • The cardholder gets interest free credit from 15 to 45 days
    • Delegate spending power to add-on members
    • Handy in case of emergencies – you need not worry about having enough cash
    • Additional facilities like insurance cover/discount etc


  3. If I am already having a card, why should I need another one ?. What are the benefits?
    • You can enjoy increased credit limit
    • It boosts your purchasing power
    • You get more promotional offers

  4. How often can I use Vijaya Bank Credit Card ?
    As often as you like, upto the credit limit set by us.

  5. Do I have to pay anything extra when I pay through the card ?
    No, you need not pay anything extra, in fact you actually enjoy interest free credit for atleast a month. The merchant accepting your card parts with a small percentage of the transaction amount with the bank However, only in the case of petrol pumps, railway booking counters, you are charged a service fee of 2.5%. In all other cases, there is no extra cost by using a card.

  6. Are there hidden charges ?
    There are no hidden charges in respect of the purchases made by you using Vijaya Bank Credit Card.

  7. How do you fix the credit limit for my card ?
    The Credit limit is based on your net income, as documented through payslips /IT returns. There is an income eligibility criteria that the salaried and the self-employed have to meet. This is to ensure that the cardholder can pay for his transactions. Presently, the card limits fixed are as under :

    Type of Card Minimum (Rs) Maximum (Rs)
    Classic Card 20,000/- 75,000/-
    Gold Card 75,000/- No pre-set maximum limit
    International Card 2,50,000/- No pre-set maximum limit

  8. How do I settle the outstanding dues on a Vijaya Bank Credit Card ?
    • You will receive a monthly statement from us. The statement will clearly tell you the amount due, and the date it has to be paid by. This amount gets debited to your account automatically. In case, the amount falls short, you have to make up the balance to bring your account into credit balance.
    • You will not have any hassles of writing cheques to make payments. The amount will be directly debited to your account

  9. What are the kinds of cards Vijaya Bank offer ?
    We issue MasterCard & VISA Credit cards under the following types :

    1. Classic Cards
    2. Gold Cards
    3. Gold International Cards
    4. Corporate Cards
    5. Add on Cards

  10. What is the eligibility criteria to apply for Vijaya Bank Credit Cards ?
    Yes, provided the concerned shares/debentures were acquired on repatriation basis.

    If you are Classic Gold
    A Salaried person * Income of atleast Rs 60000/- p.a. Income of atleast Rs 120000/- p.a.
    A Self – employed person * Income of atleast Rs 50000/- p.a Income of atleast Rs 100000/- p.a
    If you have Fixed Deposit of Rs 50000/- for two years & above
    OR
    Enjoying satisfactorily credit facility of Rs 2 lakh & above    		 Fixed Deposit of Rs 1 lakh for two years & above
    OR
    Enjoying satisfactorily credit facility of Rs 5 lakh & above
    * You should produce Copy of IT return/Form 16/Salary Certificate as a proof of income.

  11. What is the eligibility criteria to have a Gold International Card ?
    • The International Cards are issued for your travel abroad
    • Eligibility criteria is the same as that for our Gold cards.

  12. What are Add-on cards?
    We offer to your spouse, children and parents add-on cards. All you have to do is to nominate them and pay a marginal fee. Cards will be issued to them irrespective of their income, provided they are over 18 years of age. They can use the card, the expenses are included in your account, and the bills are sent directly to them.

  13. What are Corporate Cards?
    • All limited companies (Private and Public) having a minimum paid up capital of Rs 10 lakh are eligible to apply for Corporate Credit Cards.
    • For Corporate Gold cards, the paid up capital should be Rs 20 lakh
    • The company should sponsor a minimum of 3 officials for issue of cards & submit its audited balance sheet, Income Tax Assessment/Clearance orders, particulars of other bankers if any, and a resolution of their Board for issue of Corporate cards to the debit of their company's account.


  14. What is the fee structure for Vijaya Bank Credit Cards ?
    Our fee structure is the lowest in the market

    1. Classic Card
      • an one time entrance fee of Rs 300/-
      • advance annual subscription fee of Rs 300/-
      • an one time entrance fee of Rs 100/- for the add-on card
      • advance annual subscription fee of RS 150/- for the add-on card
    2. Gold Card
      • an one time entrance fee of Rs 1500/-
      • advance annual subscription fee of Rs 500/-
      • an one time entrance fee of Rs 250/- for the add-on card
      • advance annual subscription fee of RS 500/- for the add-on card
    3. International Card
      • an one time entrance fee of Rs 1000/-
      • advance annual subscription fee of Rs 1000/-

       
  15. What is the validity period of the Credit Cards?
    • Initially, the cards will be issued for a period of 2 years.
    • The renewal is automatic on satisfactory credit card operations

  16. What are the important features of Vijaya Bank Credit Cards ?
    1. Our Card is accepted at over 1 lakh Merchants all over India
    2. Our Card offers instant cash withdrawal facility at 829 branches spread throughout the country. You can draw Rs 10,000/- per month on Classic cards and Rs 25,000/- per month on Gold cards through the pass book supplied along with the card. 3% handling charges will be collected for your cash withdrawals.
    3. You can participate in the promotional schemes and also avail discounts on your purchases
    4. You will get 24 hour personal accident insurance coverage
      • Upto 1 lakh for Classic cards (the coverage is with a minimum turnover Rs 10,000/- turnover per card year)
      • All Gold Cardholders are insured for Rs 4 lakh if death is due to air crash & Rs 2 lakh in case of other accidents

  17. Why should I prefer Vijaya Bank Credit Card to the cards issued by other banks ?
    1. Lowest entrance & annual fees
    2. Automatic renewal
    3. No interest on purchase transactions, credit upto 45 days
    4. Free accident insurance cover
    5. Facility to withdraw cash from any of the 829 branches throughout India
    6. Add-on card facility with nominal fees
    7. Need not write cheques for payment, the bill amount is directly debited to the cardholder’s account once in a month
    8. No hidden charges or late fees

  18. What are the future value additions to the Vijaya Bank Credit Card holders ?
    1. We propose to introduce ATM facility in major metropolitan/urban centres with interconnectivity
    2. Global Credit Card – A single card which can be used for both domestic and international transactions
    3. Reward points – You get reward points for each transaction made through the card, which can be encashed later
    4. Revolving credit – A convenient way of paying your dues

  19. How do I protect my card ?
    • As soon as you receive your card, check the name and sign on the signature panel
    • Do not give your card to anyone for any kind of use
    • Do not sign blank charge slips in the merchant establishments
    • Do not give your card number to anyone conducting a survey
    • Do not keep your card near electronic gadgets as it may corrupt the magnetic stripe on the card.
FAQs on NRI Services
 
  1. Can NRE accounts be opened by the power of attorney (POA) holder in India on behalf of a non-resident ?
    No

  2. Can resident power of attorney holder operate NRE accounts ?
    Yes, but for only local payments to be made on behalf of the account holder. With prior permission from RBI, POA can make investments in India. However he cannot gift from NRE account or seek outward remittances and credit proceeds of foreign currency notes, TCs to NRE accounts.

  3. Are NRO/NRE account holders eligible for loans/overdrafts against their fixed deposits ?
    Yes, except for the purpose of relending, carrying on agricultural/plantation activities or for investments in real estate business.

  4. Can loans against NRE fixed deposits be repaid out of funds in NRO accounts ?
    Yes, however interest would be charged at commercial rate of interest in force from time to time.

  5. Is transfer of funds between NRE account of two different account holders permitted ?
    Yes, transfers are permitted for any purpose. If transfer is by way of gift, an undertaking from the transferee/transferor's bank, should be given, that gift tax, if any, shall be paid to Income tax authorities.

  6. Are the interest rates on FCNR(B) deposits liable for periodical revision ?
    Yes, the interest rates are fixed by concerned banks and are revised from time to time based on the rates prevailing in the international markets and subject to change without notice.

  7. Are sale/maturity proceeds of Government securities/units, National Savings Certificates allowed to be repatriated?
    Yes, subject to the condition that such securities were purchased out of funds remitted from abroad through NRE/FCNR(B) accounts.

  8. Can NRIs obtain loans abroad against the collateral security of shares/debentures of Indian companies?
    Yes, provided the concerned shares/debentures were acquired on repatriation basis.

  9. Do foreign citizens of Indian origin require permission of RBI, to purchase immovable property in India for their residential use ?
    Yes, however under general permission granted by RBI, one immovable property can be purchased for bonafide residential purpose. Payment should be made through NRE/FCNR(B) or through foreign remittance, through proper banking channel. Declaration in IPI-7 should be filed within 90 days from the date of purchase, to RBI.

  10. What is the procedure for seeking repatriation of sale proceeds of such property if desired ?
    Application in IPI-8 should be submitted within 90 days of the sale of the property.

  11. Can the property (residential/commercial) be given on rent, if not required for immediate use ?
    Yes, however the rental income or proceeds of any investment of such income has to be credited to NRO accounts.

  12. Can NRIs obtain loans for acquisitions of house/flat for residential purpose from financial institutions?
    Yes RBI has granted general permission to HDFC, LIC Housing Finance Ltd. etc., to grant housing loans to Non-residential Indian nationals for acquisition of house/flat for self occupation. The borrower is required to meet 25% of the cost by way of foreign remittance. Authorised dealers are also permitted to grant loans to NRIs for only one flat/house for self occupation on his return to India.

  13. Are returning Indians permitted to retain their assets abroad even after return to India and hold them with separate identity ?
    Yes, effective from 17th July 1992, persons who return to India, after a continuous stay of one year and above can retain their assets, foreign currency accounts abroad, or dispose of their other foreign currency assets and immovable properties. They can also repatriate the assets into India and hold them separately with authorised dealers under "Resident Foreign Currency (RFC)" accounts.

  14. Can funds in the RFC accounts be remitted abroad or utilised for local payments ?
    Yes, funds in RFC accounts can be remitted abroad for any bonafide purposes and can also be withdrawn freely for local payments in Indian rupees.

  15. What are tax-concessions available to NRIs on balances / deposits held under NRE/FCNR(B) accounts ?
    Income by way of interest of FCNR(B)/NRE deposits and NRNRRDs will be exempted from payment of Indian income tax. However interest income on NRO accounts in subject to payment of income tax.

  16. Can assets held in India by NRIs, prior to their becoming non-residents be repatriated outside India ?
    Yes. Subject to payment of applicable taxes.
FAQs on Investor Relations
 
  1. Whether the Balance sheet of the Bank is required to be approved in the AGM by the Shareholders?
    In terms of Section 10 (a) (2) of the Banking Companies ( Acquisition & Transfer of Undertakings) Act, 1980, the shareholders are entitled to discuss the Balance Sheet, Profit & Loss Account, Report of the Board of Directors on the working and activities of the Bank for the period covered by the accounts and the Auditors’ Report on the Balance Sheet and accounts.

  2. Whether the shareholders present in the AGM can transact any business other than discussing Balance Sheet, Profit & Loss A/c, Director’s and Auditor’s Reports?
    In terms of Section 10 (a) (2) stated above, discussion on any other matter requires the approval of the Chairman.

  3. Whether the shareholders have right to obtain copy of the Minutes of the AGM?
    The Minutes of AGM is required to be kept at a place as directed by the Board. It is proposed to keep the Minutes of the AGM at the Bank’s Head Office and will be open for inspection by the shareholders. Request for a copy of the Minutes will be considered.

  4. Whether payment of dividend is required to be approved by AGM?
    Dividend requires to be declared / approved by the Board. The AGM may however, discuss dividend as part of the accounts.

  5. Why does Bank depend on an outside Registrar and Transfer Agents?
    The work of Registrar and Transfer Agent is highly specialised. Our Bank floated its maiden public Issue in November, 2000 and is gaining valuable experience in the area of investor servicing, compliance of listing agreements, SEBI regulations, etc. The Bank can think of an in house transfer agent’s work only at a later stage subject to having necessary expertise, cost benefit and interest of investors.

  6. What is the Bank doing to detect forged share certificates?
    Interest accrued after 30.09.1994 is eligible for repatriation and the principal is not eligible for The Shares certificates printed by the Bank contain a set of security features which are scrutinised by Share Transfer Agents whenever the shares are received for transfer to guard against forgery, etc. Further, Bank has taken insurance policy to guard against such forged transfers.

  7. What is the Bank’s market capitalisation and how does it compare with others?
    The present market price is about Rs.15/- per share. It will not be proper to compare the market capitalisation of the Bank’s script with other scripts. Our share value shows an upward trend now.

  8. What is the Earning per Share (EPS) of the Bank?
    The Current EPS is Rs.5.89 as on 31.03.2003.

  9. What is the arrangement made by the Bank for redressal of investor of investor grievances?
    The Bank has established a Shares Division and Investor Grievances Cell (SDICGC) AT ho. We have engaged the services of M/s. MCS Ltd.., Mumbai, as registrars and share transfer agents of the Bank. The redressal of complaints is done by M/s.MCS Ltd. However, the complaints / requests received by us directly from the shareholders is forwarded to MCS Ltd and the follow up of redressal is monitored every fornight to ensure that no complaints remain unattended. The Share Transfer Agents are submitting a monthly report on the status of complaints / requests. Most of the requests / complaints received at present are for change of address and for non receipt of dividend warrants. For payment of dividend warrants we have implemented ECS facility in centers with large number of shareholders at present and this will be implemented in other centers too in future. We request all the shareholders to avail the ECS facility.

    In case any shareholder has not received satisfactory reply to his/her complaint, please write to Company Secretary, vijaya Bank, SDIGC, Head Office, 41/2, M.G.Road, Bangalore.

  10. What is the shareholding pattern of Bank’s equity?
    The shareholding pattern is as follows as on 31.03.2003
    Name Amount Percentage of holding
    Government of India 233.52 70.02
    Banks 10.36 3.11
    Indian Public 71.75 21.51
    NRIs 0.22 0.07
    Employees 6.60 1.98
    Other Body Corporates 11.07 3.31
    Total 333.52 100.00


  11. Why no gifts / gift coupons are distributed at the AGM?
    No gifts / gift coupons have been distributed at the AGM having regard to the Government of India guidelines.

  12. Will the Bank raise the rate of dividend for the subsequent years?
    Dividend payment as the shareholders appreciate, requires to be considered on year to year basis depending upon the bottom line, capital base, profit, etc. Hence, it will not be proper to commit about the dividend payments for subsequent years.

  13. Any special facilities are extended to the Bank’s shareholders?
    In respect of loans or deposits, no special facilities are available for the Bank’s shareholders like lower margin, preferential rate of interest, concessional rates for remittance, etc, as these may be viewed as discriminatory.

  14. How is the Board of Directors constituted?
    The Board of Directors is constituted under section 9 (3) of the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1980 as follows :

    Under Section 9 (3) (a) - Two whole time Directors.
    9 (3) (b) - One representative of Govt of India
    9 (3) (c) - One representative of RBI.
    9 (3) (d) - Not more than two directors from specified financial institutions.
    9 (3) (e) - One workmen representative
    9 (3) (f) - One officer representative.
    9 (3) (g) - One Chartered Accountant
    9 (3) (h) - Six other directors
    9 (3) (i) - Four shareholders directors.


    On election of directors under section 9 (3) (i), an equal number of directors nominated under section 9 (3) (h) shall retire in such manner as may be specified in the scheme.

    A director to be nominated under Section 9 (3) (h) or to be elected under section 9 (3) (i) shall have

    1. Special knowledge or practical experience in respect of one or more of the following matters :

      1. Agriculture and rural economy
      2. Banking
      3. Co-operation
      4. Economics
      5. Finance
      6. Law
      7. SSI
      8. Any other matter, the specialised knowledge or and practical experience in, which would in the opinion of the RBI, be useful to the new Bank.
    2. Represent the interest of depositors or
    3. Represent the interest of the farmers, workers and artisans.

  15. How many directors can be elected by the shareholders?
    Since public shareholding is more than 20% but less than 40%, number of shareholders’ nominee directors that can be appointed is four.

  16. What is the procedure for convening the AGM, publication of accounts and dividend payment?
    Section 29 of the Banking Regulations Act. 1949 – the Balance Sheet & Profit & Loss Account is to be submitted to Reserve Bank of India and Govt.of India within 3 months of the end of the financial year.

    Section 10 (a) (1) of Banking Companies (Acquisition & Transfer of Undertakings) Act, 1980 - AGM should be convened within six weeks of submission of audited accounts to Govt. of India or Reserve Bank of India whichever date is earlier.

    In terms of the Clause 41 of the Listing Agreement, notice of AGM along with audited accounts is to be served to all the shareholders atleast 21 days before the date of AGM.

  17. What are the advantages to shareholders in holding shares in dematerialised forms?

    1. It eliminates bad delivery.
    2. Transfer of security is effected immediately.
    3. No stamp duty is payable for transfer of shares.
    4. No market lot for demat shares.
    5. It eliminates the need to handle large volume of physical certificates.

  18. What is the dividend policy of the Bank?
    To enhance shareholders value by balancing dividend pay out with reserve creation based on conservative accounting standards.

  19. How long does the bank take to issue duplicate share certificates?
    On receipt of share holders’ requests, our share transfer agents mails questionnaire, indemnity, affidavit and surety forms. On submission of these documents, bank issues advertisements in news papers and waits for 15 days for objections, if any. Following this, duplicate shares certificates are issued after approval from the Board of Directors. The process takes about six weeks after receipt of documents in correct form.


  20. What portion of Bank’s equity has been dematerialized now?
    As on 31.03.2003 4,30,35,448 equity shares of the Bank is in demat form. Bank has dematerialized its shares with National Securities Depository Ltd and Central Depository Services Ltd.

  21. In which all Stock Exchanges Bank’s shares are listed?
    We have listed our shares in Bangalore, Mumbai and National Stock Exchanges, and our shares have normal liquidity. Trading of shares are done only in demat form.

  22. Why does the Bank charge Rs.50,000/- to the share holders who desire to have copy of list of shareholders?
    We have more than 1,15,000 shareholders sread over different parts of the country and as per SEBI guidelines it is necessary that the list is to be provided in hard copies. The amount charged is towards the cost of printing and stationary. It is clearly stipulated in clause 64 of Vijaya Bank General Regulations that the list of shareholders shall be made available for purchase to shareholders at a price fixed by the Board. We have enquired with other public sector Banks, who too charge similar amount for the list of shareholders. Hence the amount of Rs.50,000/- is charged.

  23. What is the position of shareholders’ complaints to R&T Agent, Bank and SEBI now?
    As on 31.03.2003, no shareholders’ complaints are pending with the Bank, R&T Agent or SEBI.
 
 
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