PROCESS NOTE CREDIT CARDS

Prepared By

Retail Assets - Credit & Policy Team

Version 1.0

INDEX
Objective Credit Card Process An Overview

Sourcing to Login
Credit Appraisal Credit Decision Post Approval Roles & Responsibilities Abbreviations

CREDIT CARD PROCESS AN OVERVIEW

Post Approval Credit Decision Credit Appraisal Sourcing to login at CSB Stage I Stage II

Stage IV

Stage III

Post Approval

Stage IV

Credit Decision
Credit Appraisal Sourcing to login at CSB Stage I Stage II

Stage III

Post Disbursement

Stage IV Stage III

STAGE I: SOURCING TO LOGIN AT CSB PROCESS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

Application sourcing as per Banks norms /collection of documents Process Owner/s: Tele Calling Team, X-sell team, DST, DSA Quality Checker/s: Central Sales Backend Staff

DIP check of complete application at the Central Sales Backend

Process Owner/s: Central Sales Backend Staff Quality Checker/s: Sales Manager

FCU Check Process Owner/s: FCU team Quality Checker/s: Hindsighting Team

Post Disbursement

Stage IV Stage III

STAGE I: SOURCING TO LOGIN AT CSB RISKS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

1/2 Employee Level: Improper sourcing Nexus with customers Charging invalid commission to customers

Invalid commitments
Breach of confidentiality Do Not Call (DNC) filter process not followed Incomplete documents collected from customer Capturing of wrong information on application forms Wrong data entry into system Delay in processing
Contd 7

Post Disbursement

Stage IV Stage III

STAGE I: SOURCING TO LOGIN AT CSB RISKS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

2/2 Customer level: Fraudulent documents/ Misrepresentation on documents Misrepresentation of facts Discrepancies in the application form like customer information, contact details etc. either through typographical error or miscommunication Documentation Level: Forged documents / Alterations / Misrepresentation of facts Incomplete document/Documents mishandling

Non Self attested/ OSV not followed

Post Disbursement

Stage IV Stage III

STAGE I: SOURCING TO LOGIN AT CSB CONTROLS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

1/3 Employee Related: Quality training to the front end employees/agents Cross checking through tele call/FCU/Market reference check Implement CAPTURE framework C A P T U R E
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Customer Details Attract Purpose Terms Understand Worth Risk Involved Establish Relation

Know Your Customer Through Our USP Nature / Amount / Urgency of funds required Policy Terms & Applicable Charges, communicating MITC Income, Expense, Dependents, any other info Liabilities, Assets, Credit Exposure, any other info Cross Selling, Enterprising, query resolution etc
Contd

Post Disbursement

Stage IV Stage III

STAGE I: SOURCING TO LOGIN AT CSB CONTROLS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

2/3
ContdEmployee Related

Checklist of questionnaire to be given to front end sales staff Checklist of documents to be collected given to front end staff Incomplete document/First time Not Right(FTNR) tracking to be done and same should be used for performance monitoring and training purpose (Proposed) Document Related: Complete Application Form (with photo of Applicant / Add on applicant with signature across the photo & all mandatory fields to be filled in)

Compulsory FCU check for all documents

Contd 10

Post Disbursement

Stage IV Stage III

STAGE I: SOURCING TO LOGIN AT CSB CONTROLS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

3/3
ContdDocument Related

Undertaking /MITC- completely filled KYC docs as per policy Self attestation on all the documents mandatory

OSV to be done for all the documents (wherever applicable) by the sourcing channel/personnel
No login to be done for any OSV/Self attestation missing files MITC copy to be handed over to the customer

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Post Disbursement

Stage IV Stage III

STAGE I: SOURCING TO LOGIN AT CSB SYSTEM/REPORT

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

System Integration: Inward entry in Connect Reports generation:

Login details maintained in login register by CSB staff

FCU MIS

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Post Disbursement

Stage IV Stage III

STAGE I: SOURCING TO LOGIN AT CSB AUDIT CHECKS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

Verification of Application forms KYC policy compliance Income documents/Other documents as per policy Undertaking/MITC collected from customer

Self attestation/OSV on all docs

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Post Disbursement

Stage IV Stage III

STAGE I: SOURCING TO LOGIN AT CSB TAT

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

Sourcing Post lead generation, Sales Staff needs to contact the customer within 6 hours

FCU verification

FCU report to be received within 2 working days for sampled cases

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Post Disbursement

Stage IV Stage III

STAGE I: SOURCING TO LOGIN AT CSB FLOWCHART

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

1/3

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Lead generation system is proposed

Post Disbursement

Stage IV Stage III

STAGE I: SOURCING TO LOGIN AT CSB FLOWCHART

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

2/3
Inward entry made in Inwarding module on Connect * Application submitted for FCU verification FCU will seal the packet Packet dispatched to Credit HUB Dispatch details to be uploaded by CSB in the inwarding module

Application Form/ Kyc docs collected at CSB

DIP check by CSB

Is Application DIP ok?

N Is FCU hold?

N B Y Is reqd. detail/ document available with customer? Query raised for docs/detail with Sourcing channel/ customer

FCU sample report mailed to Central Credit Team separately

Application is marked as DIP reject & DIP reject code updated on Application Form # DIP reject file to be uploaded on Connect MIS shared with Customer Care on daily basis Physical application dispatched to Credit HUB in separate packet 5th and 20th of every month.

Reject letter to be sent to customer

END

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* Proposed # Update in Promo code section in Application form

Post Disbursement

Stage IV Stage III

STAGE I: SOURCING TO LOGIN AT CSB FLOWCHART

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

3/3

Case is rejected Rejected application to be stored with Operations

MIS to be updated with proper reject reasons and shared with Sales

Sales team to contact the Customer/Channel for required detail/ documents

Is required detail/ document available as per policy norms? N

Sales to send request to Operations team for scanned copy of documents submitted previously with complete details

END

Document submitted alongwith the scanned docs to be submitted for FCU verification

Y Is FCU hold?

FCU will seal the packet Packet dispatched to Credit HUB Dispatch details to be uploaded by CSB in the inwarding module

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Post Approval

Stage IV

Credit Decision
Credit Appraisal Sourcing to login Stage I Stage II

Stage III

Post Disbursement

Stage IV Stage III

STAGE II: CREDIT APPRAISAL PROCESS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

1/2
DIP Check Process Owner/s: Credit CPA Quality Checker/s: Credit Manager

CIBIL check/ Tele verification/Eligibility calculation

Process Owner/s: Credit CPA Quality Checker/s: Credit Manager/Hindsighting Team Field Investigation (FI) Process Owner/s: CPA Staff Quality Checker/s: Credit Manager/Hindsighting Team

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Post Disbursement

Stage IV Stage III

STAGE II: CREDIT APPRAISAL PROCESS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

2/2
Customer ID generation Process Owner/s: CPA Staff Quality Checker/s: Hindsighting Team

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Post Disbursement

Stage IV Stage III

STAGE II: CREDIT APPRAISAL RISKS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

1/2 Employee Level: Delay in processing Miscalculation of eligibilities Missing crucial information by oversight Customer Level: Incomplete, improper or wrong information Document Level: Incomplete documentation and details

Contd 21

Post Disbursement

Stage IV Stage III

STAGE II: CREDIT APPRAISAL RISKS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

2/2
ContdDocument level

Loss of application/documents, Mishandling of documents Fraudulent documents (like doctored PAN cards) Documents missed through oversight Third Party Vendor Level: Misleading or incorrect information and opinions from Third Party Vendors / Advisors / Consultants Breach of confidentiality during third party check Improper behavior or non-cooperation with customer

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Post Disbursement

Stage IV Stage III

STAGE II: CREDIT APPRAISAL CONTROLS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

1/2 Employee Related: Quality training to the front end employees Credit CPA should cross verify the critical fields filled by Sales staff Strict adherence to TAT laid down for each process/sub-process

Customer related: Third party confirmation/reference checks Proper information to be collected from customer at the time of sourcing

Other process related: FI & CIBIL to be initiated only post positive internal dedupe
Contd 23

Post Disbursement

Stage IV Stage III

STAGE II: CREDIT APPRAISAL CONTROLS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

2/2
Contd

FCU screening compulsory for all cases. Every document checked to be stamped as FCU screened/sampled Original docs to be checked at the time of sourcing. OSV on documents by Sales staff

At the time of sourcing the sales representative must inform the customer that verification of details given by him will be done
Third party related: For FI agency

Various agency level seeding activities will be done by FCU team

Contd 24

Post Disbursement

Stage IV Stage III

STAGE II: CREDIT APPRAISAL SYSTEM / REPORTS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

System : Data entry in Genius Customer ID generation through Flexcube FI dump initiation/ report updation in Genius Reports generated: Login, Reject, and WIP report

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Post Disbursement

Stage IV Stage III

STAGE II: CREDIT APPRAISAL AUDIT CHECKS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

Eligibility calculation Deviation capture Capturing of proper reason for rejection FI/ FCU/CIBIL reports

Process audit to verify TAT (Proposed)

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Post Disbursement

Stage IV Stage III

STAGE II: CREDIT APPRAISAL TAT

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

DIP Check 5 Minutes Data Entry

7 Minutes
CIBIL /Dedupe Check 4 hours Tele Verification 3 Minutes

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Post Disbursement

Stage IV Stage III

STAGE II: CREDIT APPRAISAL TAT

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

Customer ID generation 1 working day FI agency

FI to be received within 24 hours within city limits

Sales Query Resolution within 1 working day

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Post Disbursement

Stage IV Stage III

STAGE II: CREDIT APPRAISAL FLOWCHART

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

Applications received by Credit CPA Receipt confirmation to be uploaded on inwarding module*

Credit DIP check to be done by Credit- CPA CPA to calculate income eligibility

Y Is the application ok? N B Cust ID generation (*) Is PAN Verified? Y Data entry in Genius PAN Check

N B

Tele verification

N B N Is FI positive? FI initiated by Credit CPA Y Is credit score parameter met? Application score is generated considering CIBIL score and other parameters Y Are CIBIL parameters met? N N D CPA to recommend limit as per system to Credit Manager Approval process initiated File handed to Credit Manager for decision Is TVR positive? Y CIBIL initiated B

Y Is FCU positive? C

E B

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Post Disbursement

Stage IV Stage III

STAGE II: CREDIT APPRAISAL FLOWCHART

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

Case is rejected Rejected application to be stored with Operations

MIS to be updated with proper reject reasons and shared with Sales and Customer care

Reject communication sent to applicant

END

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Post Approval

Stage IV

Credit Decision
Credit Appraisal Sourcing to login Stage I Stage II

Stage III

Post Disbursement

Stage IV Stage III

STAGE III: CREDIT DECISION PROCESS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

Credit Decision Process Owner/s: Credit Team Quality Checker/s: Hindsighting Team

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Post Disbursement

Stage IV Stage III

STAGE III: CREDIT DECISION PROCESS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

Employee Level: Capturing of wrong Customer ID Data capture errors Appropriate approvals not taken

Documentation Level:
Fraudulent documents submitted All the undertakings/documents as per policy not in place FCU /FI/CIBIL report validity Documents lost in transit

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Post Disbursement

Stage IV Stage III

STAGE III: CREDIT DECISION PROCESS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

Employee Related: Proper training Adherence to Non discrepancy Checklist (NDC) Strict adherence to TAT laid down for each process/sub-process Document related: Credit Manager to verify all the documents Cross check the validity and status of reports

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Post Disbursement

Stage IV Stage III

STAGE III: CREDIT DECISION SYSTEM / REPORTS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

System Integration: Approval in sanction memo in Genius Reports generated:

Approval and reject report

Hold report Sales to revert & WIP cases

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Post Disbursement

Stage IV Stage III

STAGE III: CREDIT DECISION AUDIT CHECKS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

Approval is recorded as per the Authority NDC done by OPS is as per the Process Capturing of proper reason for rejection/cancel Process audit to verify TAT

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Post Disbursement

Stage IV Stage III

STAGE III: CREDIT DECISION TAT

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

Credit decision TAT 15 Mins

37

Post Disbursement

Stage IV Stage III

STAGE III: CREDIT DECISION FLOWCHART

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

Credit Manager to reviews the sanction memo

N Are policy parameters met? Y Approve in the sanction memo

Case rejected capturing correct reject reason MIS published by Credit

END

Post approval Y process initiated

To Post disbursement

38

Post Approval

Stage IV

Credit Decision
Credit Appraisal Sourcing to login at CSB Stage I Stage II

Stage III

Post Disbursement

Stage IV Stage III

STAGE IV: POST APPROVAL PROCESS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

Extraction of embossing details & Transfer to embossing vendor. Process Owner/s: Operations Team Quality Checker/s: Hindsighting Team

Collection & storage of undelivered card

Process Owner/s: Operations Team Quality Checker/s: Hindsighting Team

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Post Disbursement

Stage IV Stage III

STAGE IV: POST APPROVAL RISKS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

1/2 Employee Level: Delay in processing Mishandling of card Breach of confidentiality

Wrong data entry into system

Tampering of documents Improper storage of documents Documents tampering Storage security

Contd 41

Post Disbursement

Stage IV Stage III

STAGE IV: POST APPROVAL RISKS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

2/2 Customer Level: Customer not contactable for card delivery Document Level: Loss of card in transit Improper storage leading to missing documents Card handover to unauthorized person

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Post Disbursement

Stage IV Stage III

STAGE IV: POST APPROVAL CONTROLS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

Employee Related: Quality training to the employee Audit by hindsighting team Proper tracker and hand-off sheets maintained for internal/external movement

Customer Related: Verification of identity proof at the time of card hand over Document Level: Any returned card to be immediately sent for safe storage Storage audit to be carried out (Proposed)
Contd 43

Post Disbursement

Stage IV Stage III

STAGE IV: POST APPROVAL SYSTEM/REPORT

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

System Integration: Extraction of embossing file from Genius Reports generated:

Inward/Outward tracker
Storage report & Reconciliation report

44

Post Disbursement

Stage IV Stage III

STAGE IV: POST APPROVAL AUDIT CHECKS

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

Verification of Applications Document condition & safety Storage security Barcode data authenticity for retrieval

Reconciliation of files sent for storage

PDD monitoring & audit FCU screening of PDD

45

Post Disbursement

Stage IV Stage III

STAGE IV: POST APPROVAL TAT

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

Dispatch of embossing file to embossing vendor Within next working day post approval

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Post Disbursement

Stage IV Stage III

STAGE IV: POST APPROVAL FLOWCHART

Process Risks Controls System/ Reports Audit Checks

Disbursement
Underwriting Sourcing to login Stage I Stage II

TAT

Flowchart

Operations team will extract the embossing file from Genius

File shared with Embossing Vendor*

Vendor embosses the card

Card is collected by DLB courier vendor and dispatched to customer

N Is customer available? Y

After three attempts the card is returned to Operations team

Card handed to customer

Operations team will receive the card

1/3

47

ROLES & RESPONSIBILITIES

Sales
Complete credit card application form collection from Customer including self attestation KYC Documents Collection Income, Surrogate Document collection as per Policy OSV checks DIP checks by Sales Backend Preparation of Hands off sheet Submission of completed credit card application form to FCU

Queries resolution from FCU and ISG

FCU
Screening or sampling based on FCU internal criteria Queries cases forwarded to Sales Team for resolution FCU screen cases forwarded to Credit Hub FCU sample cases mailed to Credit Hub

Conti

48

ROLES & RESPONSIBILITIES

DCS
Customer ID generation

ISG
Credit Card application DIP check as per the Policy norms Annual Income calculation Credit Card application inwarding in the system PAN validation through NSDL site Initiate CIBIL and review complete CIBIL report basis score and other parameters Conduct TVR for all positive CIBIL cases Initiate FI for all CIBIL and TVR positive cases Prepare Approval / Sanction memo Submit complete credit card applications with approval / sanction memo to Credit Manager for decisioning Generation of various MIS reports namely: - Inward applications - Discrepant cases - CIBIL status - FI status - Credit Decision

Conti

49

ROLES & RESPONSIBILITIES

Credit
Ensure CIBIL and FI reports are checked before credit decision Review all completed credit card applications and decision for approval or decline Assign credit limit basis Policy and exposure reflected in CIBIL Hand over of decisioned credit card applications to ISG / Operation

Operation
Ensure decline letter is forwarded to all applicants whose application is declined Credit Card number generation Embossed / PIN file generation Embossing file upload PIN printing and dispatch VBV file upload Uploading of Pick up file Credit Card dispatch through Courier Credit Card activation Credit Card application scan copies and storage of credit card application

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ABBREVIATIONS
CM- Credit Manager SM Sales Manager

CPO Credit Processing Officer

TAT Turn Around Time NDC- No discrepancy Checklist FI Field Investigation FCU Fraud Control unit PDD Post Disbursement Documents OTC Over The Counter CAS Customer Acquisition System OSV Original Seen And Verified

VBV Verified By VISA

ISG Service Provider (Credit/Operations CPA)

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THANK YOU