policy on bank deposits · 14 secrecy of customer's accounts 20 15 issuance of term deposit...

POLICY ON

BANK DEPOSITS

CUSTOMER RELATIONS DEPARTMENT

THE SOUTH INDIAN BANK LTD.

HEAD OFFICE, THRISSUR

(Reviewed on 20.12.2019 as per DBR/CRD/S-215/19-20)

(Version- 16/19-20)

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TABLE OF CONTENTS

1 Preamble 2

2 Types of Deposit Accounts 2

3 Account Opening of Deposit Accounts 3

3.1 Due Diligence 3

3.2 Customer Identification Procedure (CIP) 4

3.3 Bank Account by Foreign Student 6

3.4 Bank Account by Foreign Nationals 7

3.5 Foreign Account Tax Compliance Act (FATCA) 7

4 Operation of Deposit Accounts 10

4.1 Operation of Joint Account 11

4.2 Mandate / Power of Attorney 12

4.3 Auto Renewal of Term Deposit 12

4.4 Tax Gain Deposit 13

4.6 Nomination facility 13

5 Interest Payment 16

6 Minors‟ Accounts 17

7 Account of Illiterate Person 17

8 Accounts of Transgender persons 18

9 Account of visually challenged persons 18

10 Account of Persons with Autism, Cerebral Palsy, Mental Retardation & Multiple Disabilities 18

11 Banking facility for Senior Citizens and Differently Abled Persons 18

12 Addition or Deletion of the name/s of joint account holders 19

13 Customer Information 20

14 Secrecy of Customer's Accounts 20

15 Issuance of Term Deposit Advice 21

16 Premature withdrawal of Term Deposit 21

17 Premature renewal of Term Deposit 21

18 Renewal of Term Deposits / Overdue Term Deposits 22

19 Advances against deposits 22

20 Settlement of dues in deceased deposit account 22

21 Interest payable on Term Deposit in deceased account 23

22 Interest Rate on Term Deposits 23

22.1 Interest Calculation Methodology 25

23 Insurance cover for deposits 25

24 Stop payment facility. 25

25 Dormant Accounts 26

26 Redressal of complaints and grievances 26

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1. Preamble

One of the important functions of the Banks is to accept deposits from the public for the

purpose of lending. In fact, depositors are the major stakeholders of the Banking System. The

depositors and their interests form the key area of the regulatory framework for Banking in

India and this has been enshrined in the Banking Regulation Act, 1949. The Reserve Bank of

India is empowered to issue directives/advices on interest rates on deposits and other

aspects regarding conduct of deposit accounts from time to time. With liberalization in the

financial system and deregulation of interest rates, Banks are now free to formulate deposit

products within the broad guidelines issued by RBI.

This policy document on deposits outlines the guiding principles in respect of formulation

of various deposit products offered by the Bank and terms and conditions governing the

conduct of the account. The document recognizes the rights of depositors and aims at

dissemination of information with regard to various aspects of acceptance of deposits from

the members of the public, conduct and operations of various deposit accounts, payment

of interest on various deposit accounts, closure of deposit accounts, method of disposal of

deposits of deceased depositors, etc., for the benefit of customers. It is expected that this

document will impart greater transparency in dealing with the individual customers and create

awareness among customers of their rights. The ultimate objective is that the customer

will get services they are rightfully entitled to receive without demand.

While adopting this policy, the Bank reiterates its commitments to individual customers

outlined in the Code of Banks Commitment to Customers adopted by the Bank. This

document is a broad framework under which the rights of common depositors are

recognized. Detailed operational instructions on various deposit schemes and related

services will be issued from time to time.

2. Types of Deposit Accounts

While various deposit products offered by the Bank are assigned different names, the

deposit products can be broadly categorized into the following types. Definition of major

deposits schemes are as under:-

2.1. “Demand Deposits” means a deposit received by the Bank which is withdrawable on

demand;

2.2. “Savings Deposits” means a form of demand deposit which is subject to restrictions as

to the number of withdrawals as also the amounts of withdrawals permitted by the Bank

during any specified period;

2.3. “Term Deposit” means a deposit received by the Bank for a fixed period withdrawable

only after the expiry of the fixed period and includes deposits such as Recurring / Fixed

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Deposits with monthly/quarterly interest pay out/ Cumulative interest deposits etc.

These deposits are accepted under Domestic/NRE/NRO/FCNR(B)/RFC categories.

2.4. “Current Account” means a form of demand deposit wherefrom withdrawals are

allowed any number of times depending upon the balance in the account or up to a

particular agreed amount and will also include other deposit accounts which are

neither Savings Deposit nor Term Deposit.

2.5. “Bulk Deposit” means Single Rupee term deposits of Rupees two crore and above for

Scheduled Commercial Banks (excluding Regional Rural banks) and Small Finance

Banks.

3. Account Opening of Deposit Accounts

The Bank before on boarding a customer for opening any deposit account will carry out

due diligence as required under “Know Your Customer” (KYC) guidelines issued by RBI,

Anti-Money laundering rules and regulations and such other norms or procedures as per

the Customer Acceptance Policy adopted by the Bank. If the decision to on board a

customer to open an account of a prospective depositor like a PEP customer, a customer

with an MLM type business etc. requires clearance at a higher level, reasons for any

delay in opening of the account will be informed to him/her and the final decision of the

Bank will be conveyed at the earliest to him/her.

The Bank is committed to providing basic Banking services to disadvantaged sections of the

society. Banking services will be offered to them through Basic Savings Bank Deposit Accounts

(BSBDA) and such accounts will be opened with relaxed customer acceptance norms, if any

applicable, as per regulatory guidelines.

Bank shall engage Business Correspondents both individuals and Corporate to extend basic

Banking services.

The Customer cum account opening forms and other material would be provided to the

prospective depositor by the Bank. The same will contain details of information to be

furnished and documents to be produced for verification and / or for record. It is expected of

the Bank official opening the account, to explain the procedural formalities and provide

necessary clarifications sought by the prospective depositor when he approaches for opening

a deposit account. Accounts can also be opened on-line. Bank has a simplified account

opening form for Small Accounts.

3.1. Due Diligence Process

The due diligence process, while on boarding a customer for opening a deposit

account will involve satisfying about the identity of the Person by Verifying Identity

Proofs / Documents Mandated By Regulator / statutes applicable from time to time,

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verification of address, satisfying about his / her occupation and source of income.

and obtaining recent photograph of the person/s opening/operating the account are

part of due diligence process.

The regulatory guidelines require Banks to categorize customers based on risk

perception and prepare profiles of customers for the purpose of transaction monitoring.

Inability or unwillingness of a prospective customer to provide necessary

information/details could result in the Bank not opening an account.

Inability of an existing customer to furnish details required by the Bank to fulfill statutory

obligations could also result in closure / partial freeze of the account after due

notice(s) is provided to the customer. In addition to the due diligence requirements,

under KYC norms, the Bank is required by law to obtain Permanent Account Number

(PAN) or alternatively declaration in Form No. 60 as specified under the Income Tax Act

/ Rules.

3.2. Customer Identification Procedure (CIP)

Introduction is not required for opening of Savings Bank Accounts. The Applicant should

submit anyone of the following Officially Valid Documents (OVD).

1) Aadhaar Card (on voluntary basis along with the consent)

2) Passport,

3) Driving License,

4) Voter's Identity Card issued by Election Commission of India,

5) Job card issued by NREGA duly signed by an officer of the State Government,

6) Letter issued by the National Population Register containing details of name and address.

The Permanent Account Number(PAN) and in absence of the same, Form 60 as the case may

be , is mandatory. If the OVD furnished by the customer does not contain updated address,

the following documents shall be deemed to be OVDs for the limited purpose of proof of

address:

a) Utility bill which is not more than two months old of any service provider(electricity,

telephone, post paid mobile phone, piped gas, water bill);

b) Property or Municipal tax receipt;

c) Pension or family pension payment orders (PPOs) issued to retire employees by

Government Departments or Public Sector Undertakings, if they contain the address

d) Letter of allotment of accommodation from employer issued by State Government or

Central Government Departments, statutory or regulatory bodies, public sector

undertakings, scheduled commercial banks, financial institutions and listed companies,

lease, and license agreements with such employers allotting official accommodation.

The customer shall submit OVD with current address within a period of three months of

submitting the documents specified at a) to d) above.

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In case the OVD submitted by a foreign national does not contain the details of address, in

such case the documents issued by the Government departments of foreign jurisdictions and

letter issued by the Foreign Embassy or Mission in India shall be accepted as proof of address.

•The following documents are required for opening the account by Non- Resident Indian

(NRI) / Person of Indian Origin (PIO) / Overseas Citizen of India (OCI).

Proof of Status

1.

For NRI’s: Any one of the following

Valid Visa/Work permit

2. Any one of the following for NRI‟s with Seafarer work profile.

3. Valid job contract

4. Continuous Discharge Certificate (CDC), if the disembarkation stamp

on CDC is not more than 6 months old

5. Expired contract letter (if the disembarkation stamp on CDC is not

6.

more than 6 months old)

Last Pay slip evidencing employment with a shipping company (not


For PIO’s/ OCI’s: Any one of the following:

1. PIO card/OCI card.

2. Relevant pages of Passport of parents or grandparents, establishing

their Indian Origin.

3. Marriage Certificate establishing spouse‟s Indian Origin

Proof of Identity Relevant pages of Passport

Proof of Tax

Residency

(Required TIN of all

applicants)

1)

For NRI’s: Anyone of the following :

Document mentioning Tax Identification Number(TIN) or functional

equivalent

2) Certificate of residence or any valid identification issued by an

authorized Government body, including a Government agency or a

municipality of the country or territory of residence.

3) Any financial statement, third party credit report, bankruptcy filing, or

a report of the government agency regulating the securities market.

4)

5)

6)

Valid job contract

Continuous Discharge Certificate (CDC), if the disembarkation stamp

on CDC is not more than 6 months old

Expired contract letter (if the disembarkation stamp on CDC is not

more than 6 months old).

7) Last pay slip evidencing employment with a shipping company (not


4.

For PIO’s/ OCI’s: Any one of the following:

1) PIO card/OCI card

2) Relevant pages of Passport of parents or grandparents, establishing

their Indian Origin

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3) Marriage Certificate establishing spouse‟s Indian Origin

Current Address

Document (Overseas

only) NRI‟s with

seafarer work profile

and on ship can either

give employer‟s

overseas address or

Indian address

Anyone of the following :

1) Relevant pages of Passport (mentioning overseas address)

2) Self-declaration of address with positive confirmation by submitting

a copy of the following:

3) Any financial statement, third party credit report, bankruptcy filing, or

a report of the government agency regulating the securities market.

4) Government issued National Identity card at the country of residence

Driving license issued abroad.

5) Utility Bill (Electricity, Telephone, Gas)

6) Original copy of latest overseas bank account or existing NRE/NRO

account statement carrying overseas address.

7) Employer‟s certificate

8) Address proof of the blood relative as per point a) to b) above

(spouse, father, mother, sister, brother and child) with whom you are

staying along with supporting proof of relationship (passport, PAN

card, Driving license, Voter Identity card, Aadhaar card, Marriage

certificate, Birth certificate)

Proof of Permanent

Address (Overseas /

Indian)

For NRI’s: Anyone of the following :

1) Relevant pages of Passport

2) Driving License

3) Voter Identity card

4) NREGA Job card

For PIO’s / OCBs: Relevant pages of Passport

3.3. Bank Account by Foreign Students :

Foreign students coming to India would be considered as “Non-Resident” and only

NRO SB account will only be opened on the basis of student‟s passport (with

appropriate visa and immigration endorsement) which contains the proof of identity

and address in their home country along with a photograph and educational

institution admission offer letter, subject to following.

Within a period of 30 days of opening the account, the foreign student should submit a

valid address proof giving local address, in the form of rent agreement or a letter

from the educational institution as a proof of living in a facility provided by the

educational institute. The landlord visiting the branch for verification of local address

shall not be insisted.

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During the 30 days period, the account should be operated with a condition

of allowing foreign currency remittance not exceeding USD 1,000 into the account

and a cap of monthly withdrawal of Rs.50,000.00 pending verification of address.

Account will be maintained in INR, out of the inward foreign remittance from

abroad, proceeds of foreign currency notes/ travellers cheque brought while

coming to India and legitimate dues in India of the account holder i.e. Government

scholarship, stipend, etc.

Students of Bangladeshi Nationality will be allowed opening account if they hold

a valid VISA and valid residential permit issued by Foreigner Registration Office

(FRO) / Foreigner Regional Registration Office (FRRO) concerned.

Prior approval of Reserve Bank of India is needed for opening the account by

the students with Pakistani nationality.

3.4. Bank Account by Foreign Nationals :

Foreign nationals can open Non-Resident (Current / Savings) Accounts for a maximum

period of 6 months, during their stay in India for meeting local expenses. The Foreign

national shall submit Passports and other valid identification proofs to the satisfaction of

Know Your Customer norms while opening of the accounts. Funds remitted from outside

India through banking channel or those obtained by sale of foreign exchange brought by

the tourists to India can be credited to the account. The balance in the account is

repatriable at the time of departure from India, provided the account has been

maintained for a period not exceeding six months and the account has not been credited

with any local funds, other than interest accrued. If held for more than six months, then

permission from the RBI would be required to repatriate the amount. Foreign nationals

can freely make local payments through the NRO account provided all payments to

residents exceeding INR 50,000.00 can be made only by means of cheques/pay

orders/demand drafts.

3.5. Foreign Account Tax Compliance Act (FATCA) :

The Bank will undertake due diligence as per applicable Foreign Account Tax Compliance

Act (FATCA) the Common Reporting Standard (CRS) rules as notified by RBI/CBDT. The

customer has to declare and agree to disclose the material facts at the time of opening

and also in future, failing which the Bank would be within its right to put restrictions in

the operations of the account or close it or report to any regulator and/or any authority

designated by Government of India (GOI)/RBI or take any other action as may be deemed

appropriate by the Bank if the deficiency is not remedied within the stipulated period.

3.6. Technological Banking Products :

Customer also can avail other Banking product services offered by Bank from time to

time like-

a) Debit Card- Bank may issue Debit Cards to customers having Saving

Bank/Current Accounts. Bank may charge on debit card transactions within

stipulated benchmark as per regulatory guidelines. and in accordance with the

Board approved debit card issuance policy of the Bank.

b) Mobile and Internet Banking- Bank may offer Mobile Banking and Internet

Banking service to the customers opted for and registered for the services.

Banks may place per transaction limits based on its own risk perception, for the

transactions through mobile banking and internet banking with the approval of

its Board.

3.7. Savings Bank Accounts :

Savings Bank Accounts can be opened generally for Individuals only for "Savings

purpose". Kartha of HUF and Certain entities (as advised by Reserve Bank of India

(RBI) from time to time may also be allowed to open Savings Bank accounts) as listed

below:-

1. Primary Co-operative Credit Society which is being financed by the bank

2. Khadi and Village Industries Boards

3. Agriculture Produce Market Committees

4. Societies registered under the Societies Registration Act, 1860 or any other

corresponding law in force in a State or a Union Territory except societies

registered under the State Co-operative Societies Acts and specific state

enactment creating Land Mortgage Banks

5. Companies licensed by the Central Government under Section 8 of Companies

Act, 2013 or Section 25 of Companies Act, 1956 or under the corresponding

provision in the Indian Companies Act, 1913 and permitted, not to add to their

names the words ‘Limited’ or the words ‘Private Limited’

6. Institutions other than those mentioned in section 26(h) and whose entire

income is exempt from payment of Income-tax under the Income-Tax Act, 1961,

with the exception of

Government departments / bodies depending upon budgetary allocations

for performance of their functions

Municipal Corporations or Municipal Committees

Panchayat Samitis

State Housing Boards

Water and Sewerage / Drainage Boards

State Text Book Publishing Corporations / Societies

Metropolitan Development Authority

State/ District Level Housing Co-operative Societies, etc.

Political party

Trading / business or professional concern, whether such concern is a

proprietary or a partnership firm or a company or an association

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7. Government departments / bodies / agencies in respect of grants/ subsidies

released for implementation of various programmes / Schemes sponsored by

Central Government / State Governments subject to production of an

authorization from the respective Central / State Government departments to

open savings bank account

8. Development of Women and Children in Rural Areas (DWCRA)

9. Self-help Groups (SHGs), registered or unregistered, which are engaged in

promoting savings habits among their members.

10. Farmers’ Clubs – Vikas Volunteer Vahini – VVV

3.8. Current Accounts :

Current Accounts can be opened by Individuals / Partnership Firms / Private and

Public Limited Companies / HUFs / Associations/ Societies / Trusts, Limited Liability

Partnership, etc. While opening Current Accounts, Bank shall obtain a declaration

from the prospective account holder to the effect that he / she / they is / are not

enjoying any credit facility with any other Bank or obtain a declaration giving

particulars of credit facilities enjoyed by him/her if any, from other Bank(s). If the

customer is already enjoying any credit facility from any other Bank, the customer

shall produce a “No Objection Certificate” from such Bank/s for opening.

Alternatively, the Bank may take up for "NOC" with such Bank/s on the request of

the customer or if it is found that the customer is enjoying credit facilities on

verification in CRILC data base. After making the request for "NOC" from such

bank/s, in case no response is received after a minimum period of a fortnight,

except in the case customers with credit facilities showing status as SMA-1 and

below. Bank may open current accounts of prospective customers. Further, where

the due diligence is carried out on the request of a prospective customer who is a

corporate customer or a large borrower enjoying credit facilities from more than one

Bank, the Bank may inform the consortium leader, if under consortium, and the Bank

with the largest exposure, if under multiple Banking arrangement.

3.9. Term Deposits Accounts can be opened by individuals/partnership firms/Private

and Public Limited Companies/HUFs/Specified Associates/Associations/Societies/Trusts,

Limited Liability Partnership, etc.

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4. Operation of Deposit Accounts :

For deposit products like Savings Bank Account and Current Deposit account, the Bank

will normally stipulate certain minimum balances to be maintained as part of terms and

conditions governing operation of such accounts. Failure to maintain minimum balance in

the account will attract levy of charges as specified by the Bank from time to time. For

Savings Bank Account the Bank may also place restrictions on number of transactions,

cash withdrawals, etc., for given period. Similarly, the Bank may specify charges for

issue of cheque books, additional statements of accounts, duplicate pass book, folio

charges, etc. All such details, regarding terms and conditions for operation of the

accounts and schedule of charges for various services provided will be communicated to

the prospective depositor while opening the account.

On request of customer, Bank shall permit operation of eligible Savings Bank and

Current accounts through digital channels like Debit Card, Internet Banking and Mobile

Banking subject to terms and conditions and transaction limits prescribed by the Bank

from time to time. Bank shall also provide mobile based, digital transactions locking facility

to customers.

Bank shall permit opening and closing of Term Deposit accounts including Recurring

Deposit of existing customers through Digital channels like Internet Banking and

Mobile Banking. In case of accounts opened through digital channels an electronic

acknowledgement shall be given to the customer immediately. While closing Term

Deposit accounts through digital channels, the closure proceeds shall be credited to the

designated operative account of the customer.

Deposit accounts can be opened by an individual in his own name (status: known as

account in single name) or by more than one individual in their own names (status:

known as Joint Account). Savings Bank Account can also be opened by a minor

Represented by guardian. The Guardian can be either Natural Guardian or Legal

Guardian. Natural Guardian can be one of the natural parents; viz., Mother or the

Father. The Legal guardian is the one appointed by the court or an authority vested with

the rights to appoint a Legal Guardian for the Minor. The Savings Bank Account

opened by minor as Represented by natural guardian / guardian can be operated by

such guardian only. Minors above the age of 10 will also be allowed to open and

operate Savings Bank Account independently, subject to restrictions on transactions.

Cheque books will not be provided in such accounts and no overdrafts will be granted

to such accounts of minors. Bank offers Students' account with ATM card facility (SIB

JUNIOR) for those students who have completed the age of 10 years.

On the date of the Minor attaining majority account should be status changed as

inoperative till the time customer converts the minor account to major by submitting

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the required KYC documents and a recent photograph of the customer. Bank should

initiate the prior communication to Minor accounts that would attain to majority.

On attaining majority, the erstwhile minor should confirm the balance in his/her account

and if the account is operated by the natural guardian / guardian, fresh specimen

signature of the erstwhile minor duly verified by the natural guardian should be

obtained and kept on record.

4.1. Operation of Joint Account – The Joint Account opened by more than one

individual can be operated by single individual or by more than one individual jointly.

The mandate for operating the account can be modified with the consent of all

account holders. The joint account holders can give any of the following mandates

for the disposal of balance in the above accounts:

Either or Survivor: If the account is held by two individuals say, A&B, the final

balance (on maturity) along with interest, if applicable, will be paid to anyone of

them when both are alive and to survivor on death of anyone of the account

holders. This mandate can be modified by the consent of all the account holders.

Signature of both the depositors need not be obtained for payment of the

amount on maturity. However signatures of both depositors may have to be

obtained, in case the deposit is to be paid before maturity. If the authorization

form printed in the Term Deposit account opening form is duly filled and signed

by the joint holders, authorizing the named holder to pre-close the deposit,

signature of the named holder alone need to be taken for closing the deposit before

maturity. In case any all the depositors expires before maturity, prepayment of the

fixed/term deposit will be allowed only to the nominee for the deposit account or

with the concurrence of legal heirs of the deceased joint holder, if no nomination is

available for the account.

Anyone or Survivor: If the account is held by more than two individuals say, A, B

and C the final balance (on maturity) along with interest, if applicable, will be paid

to any one of them when all are alive and to any one of the survivor/s on death

of anyone or any two account holders. The above mandate will be applicable to or

become operational only on or after the date of maturity of term deposits. This

mandate can be modified by the consent of all the account holders.

Former or Survivor: Incase the mandate is Former or Survivor, the Former alone

can operate/withdraw the matured amount of the deposit, when both the

depositors are alive. This mandate can be modified by the consent of all the account

holders. However, the signatures of both the depositors need to be obtained, in

case the deposit to be paid before maturity. If the authorization form printed in

the Term Deposit account opening form is duly filled and signed by the joint holders

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authorizing the "former" to pre-close the deposit, signature of the "former" alone need to

be taken for closing the deposit before maturity. If former expires, survivor can

withdraw the deposit on maturity. In case all the depositors expires before maturity,

prepayment of the fixed/term deposit will be allowed only to the nominee for the deposit

account or with the concurrence of legal heirs of the deceased joint holder, if no nomination

is available for the account.

Latter or Survivor: If the account is in the name of two individuals say, A & B, the final

balance along with interest, if applicable, will be paid to the latter i.e. B on date of

maturity and to the survivor on death of anyone of the account holders.

In case of Term Deposit with “Either or Survivor” or “Former or Survivor” or “Latter or

Survivor” or “Anyone or Survivor/s” mandate, Banks may allow premature withdrawal of the

deposit by the surviving joint depositor/s on the death of the other depositor/s, if there is

a joint mandate from all the joint depositors to this effect.

However, in case of accounts held by Non Residents Indians along with their resident

close relatives, the only mode of operation permitted is “Former or Survivor” while

Resident individuals maintaining joint account with Non Residents Indian Close relatives can

have mode of operation as “Either or Survivor”.

4.2. Mandate / Power of Attorney : At the request of the depositor, the Bank will register

Mandate / Power of Attorney given by him/her authorizing another person to operate the

account on his/her behalf. Operations on an NRE account may be allowed in terms of

Power of Attorney or other authority granted in favour of a resident by the Non-Resident

Account holder, provided such operations are restricted to withdrawals for local payments or

remittance to the account holder himself through banking channels. In cases where the

account holder or a bank designated by him is eligible to make investments in India, the

Power of Attorney holder may be permitted to operate the account to facilitate such

investment. The resident Power of Attorney holder is not allowed to (a) open a NRE

account; (b) repatriate outside India funds held in the account other than to the account

holder himself; (c) make payment by way of gift to a resident on behalf of the account

holder; (d) transfer funds from the account to another NRE.

4.3. Auto Renewal of Term Deposit : The Term Deposit account holders at the time of

placing their deposits can give instructions with regard to closure of deposit account or

renewal of deposit for further period a s on the date of maturity. In case of absence of

any instructions, it shall be presumed that the depositor intends to auto renew the

deposit for the same period to which it was initially deposited and shall be renewed

automatically for the same period to which it got matured. However, this shall not be

applicable to Tax Gain Deposit and Recurring Deposit.

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4.4. Tax Gain Deposit - Government of India vide reference No.203/2006 dated 28.07.2006

has notified the scheme “Bank Term Deposit Scheme-2006” effective from 01.04.2006,

which was announced in the Finance Budget for FY 2006-07. For unique identity, we have

renamed the deposit scheme as “SIB-TAX GAIN –2006. The salient features of the scheme

are given below:.

1) An amount up to Rs. 1,50,000.00 (Minimum Rs.100/- and maximum Rs. 1,50,000.00

in multiples of Rs.100/-) deposited in the bank as Fixed / under Compound interest

scheme for a period of 5 years is eligible to be exempted from Income Tax under

Section 80C of IT Act, 1961.

2) Amount deposited in the name of individual, joint (first name holder) or HUF

(Karta) not exceeding Rs. 1,50,000.00 in a financial year is eligible for tax exemption.

3) Though nomination can be registered, NO nomination shall be made in respect of

a term deposit applied for and held by or on behalf of a minor.

4) Submission of PAN is mandatory.

5) The rate of interest will be the rate of interest applicable for Fixed deposits

with maturity 5 years. Additional rate for staff members, senior citizens will be

applicable to this deposit also.

6) This deposit shall not be closed before the expiry of 5 years from the date of

its receipt.

7) Tax Gain Deposit cannot be closed prematurely except on death of the depositor.

8) Auto renewal shall not be applicable to Tax Gain Deposit, except ,if the

customer specifically requests to renew the same on maturity.

4.5. Recurring Deposits shall not be automatically renewed on maturity. The customer shall

be paid a lump sum amount subject to statutory deduction of TDS, which includes the

regular, periodic investments and the interest earned on them. The maturity amount shall

be credited to the operative account of the customer. In case there is no such operative

account, the proceeds shall be transferred to 'Overdue Deposits' account. In case of

default in installments, penal charge shall be applied and the maturity amount shall be

reduced to the extent of defaulted amount and penal charge.

4.6. Nomination facility is available on all deposit accounts opened by the individuals.

Nomination is also available to a sole proprietary concern account. Bank recommends

that all depositors avail nomination facility. The nominee, in the event of death of the

depositor/s, would receive the balance outstanding in the account as a trustee of

legal heirs. The depositor will be informed of the advantages of the nomination facility

while opening a deposit account.

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a) Nomination can be made in favour of one individual only.

b) Nomination so made can be cancelled or changed by the account holder/s at any time.

c) In case the nominator is an illiterate person, he /she shall affix the thumb impression

on the required form and shall be attested by two independent witnesses.

d) Nomination can be modified by the consent of account holder/s.

e) Nomination can be made in favour of a minor also. In such cases at the time of

making nomination, depositor has to give a name of person (called appointee) who is a

major and will receive the amount of deposit on behalf of the nominee in the event of

death of the account holder during the minority of the nominee.

4.7. Statement of Account : A statement of account will be provided by the Bank to Savings

Bank as well as Current Deposit Account holders periodically as per terms and conditions

of opening of the account. Alternatively, the Bank may issue a Pass Book to these account

holders. Also, Bank will be sending monthly account statements to customers for all

operative accounts who have registered their e-mail ID with the Bank on a monthly basis.

4.8. Transfer of Accounts : The deposit accounts may be transferred to any other branch of

the Bank at the request of the depositor, if there is a justifiable reason for the customer to

transfer the deposit to another Branch. The Bank reserves the right to turn down such

requests, if found without any valid reason.

4.9. Overdraft : On request of customer, Bank shall provide over draft facility at its discretion

in Savings Bank and Current Accounts subject to terms and conditions laid down by Bank

from time to time. Bank shall charge interest for the overdrawn amount at the rate specified at

the time of sanctioning the overdraft.

4.10. Miscellaneous: In order to ensure that banking facilities percolate to the vast sections of the

population, the Bank makes available all printed material used by retail customers including

account opening forms, pay-in-slips, passbooks, etc., in trilingual form i.e., English, Hindi and

the concerned Regional Language. Customer may write cheques in Hindi, English or in the

concerned regional language. Cheques bearing date in Hindi as per the National Calendar

(Saka Samvat) are accepted for payment, if otherwise in order.

4.11. Closure of Accounts :

Accounts can be closed on written request of the depositor. Request for closure of

account should state the reason for closure. The pass book, unused cheque leaves and

ATM cum debit card (after cutting into two / several pieces across the magnetic strip/ Chip)

must accompany such request. Joint accounts can be closed only at the request of all such

joint signatories.

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Under normal circumstances, Bank will not close depositors account without giving

at least 30 days‟ notice indicating the reasons for such closure. The Saving Bank

Account shall be used to route transactions of only non-business / non-commercial

nature. In the event of occurrence of such transactions or any such transactions that

may be construed as commercial /business/dubious or undesirable, the Bank

reserves the right to unilaterally freeze operations in such accounts and/or close the

account. In such cases, account holder will be required to make alternate

arrangements for cheques already issued and desist from issuing any fresh cheques

on such account.

Accounts of Foreign students studying in India will be closed on completion of

studies or expiry of student VISA. Partial freezing in terms of debit freeze on expiry

of VISA. Repatriation will be allowed in respect of balances held in bank account by

a foreign student who has completed his/her studies, provided such balance

represents proceeds of remittances received from abroad through normal banking

channels or rupee proceeds of foreign exchange brought by the student and sold to

an authorized dealer or out of stipend/ scholarship received from the Government

or any organization in India.

If the customer fails to provide the request and the KYC documents required for

periodical KYC updation, despite requests through email/letters/SMS, the bank

may decide to either suspend some of the services viz., ATM withdrawal, Mobile

banking, Net banking etc. or to freeze the account for debits or to close the

account and send the balance in the account in the address on record.

4.12. Deposits :

Deposits in account can be made by way of cash, cheques, electronic transfers, NACH

(National Automated Clearing House), or through any other means which may come into

usage after giving due notice on the Bank‟s web-site. Cash Deposits at Parent / Non

Parent branches are subject to certain restrictions and may also involve payment of

charges.

4.13. Withdrawals :

Withdrawals in account can be by way of Cheques, Withdrawal forms, through the use

of ATM‟s, Point Of Sale (POS) machines, by means of electronic transfer through

Internet, by use of biometric cards, by giving Standing Instructions to the Bank,

N A C H Instructions or through any other means which may come into usage after giving

due notice on the Bank‟s web-site. Cash withdrawal should be in round rupees. Bank does

not carry out any financial transactions requested by the Customers (Residents) through

e-mail even if the request is made by a letter scanned as an attachment. The following

instructions are applicable for NRI Customers:

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Instructions for effecting transfers from saving bank/current account for issuing TDR/STDR

and vice versa in the same name and style under the same Customer Information File (CIF)

and at the home branch only, can be accepted through the registered e-mail of the

customer. However, No third party transfer or a transfer to own account at any other

office / branch / bank (outward remittance) from SB/CA/TDR/STDR/RD to be done

based on e-mail instructions.

Non-financial transactions limited to Tax Deducted at Source (TDS) related queries, cheque

collection status and issue of TDS related certificates can be attended to, based on registered

email requests.

5. Interest Payment

a) Interest shall be paid on Savings Bank Deposits and Term Deposits as fixed from time to time

with the prior approval of the Bank's Board of Directors / Asset Liability Management

Committee (ALCO) subject to extant RBI guidelines/ directives from time to time. Further, in

terms of RBI directives dated 03.03.2016 the interest on domestic rupee Savings Deposit

accounts shall be calculated on the daily product basis at quarterly intervals.

b) No interest shall be paid on deposits held in current accounts, provided that balances lying in

current account standing in the name of a deceased individual depositor or sole proprietorship

concern shall attract interest from the date of death of the depositor till the date of repayment

to the claimant/s at the rate of interest applicable to savings deposit as on the date of payment.

c) In terms of Reserve Bank of India directives, interest shall be calculated at quarterly

intervals on Term Deposits and paid at the rate decided by the Bank depending upon the

period of deposits. In case of monthly deposit scheme, the interest shall be calculated for the

quarter and paid monthly at discounted value. The interest on Term Deposits is

calculated by the Bank in accordance with the formulae and conventions advised by

Indian Banks‟ Association.

d) The rate of interest on deposits will be prominently displayed in the branch premises.

Changes, if any, with regard to the deposit schemes and other related services shall also be

communicated upfront and shall be prominently displayed.

e) The Bank has statutory obligation to deduct tax at source if the total interest

paid/payable on all Term Deposits and recurring deposits held by a person exceeds the

amount specified under the Income Tax Act. The Bank will issue a Tax Deduction Certificate

(Form 16A as per IT acts) for the amount of tax deducted. The depositor, if entitled to

exemption from TDS / lower rate of TDS can submit declaration in Form 15H / Form 15G/Ta

x E x e m p t i o n C e r t i f i c a t e s at the beginning of every financial year along with the

Permanent Account Number (PAN) issued by the Income Tax Department.

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f) Payment of Interest on Term Deposit Maturing on Sunday / Holiday / Non-business

Working Day : In case of reinvestment deposits and recurring deposits, Banks should pay

interest for the intervening Sunday / holiday / non-business working day on the maturity

value. However, in the case of ordinary Term Deposits, the interest for the intervening

Sunday / holiday / non-business working day should be paid on the original principal

amount.

6. Minors’ Accounts

a) Saving Bank Account and Term Deposit Accounts including Recurring Deposits can be

opened in the name of minor (known as Minor‟s Account) by natural guardian or guardian

appointed by court (legal guardian). Savings Bank Account or Term Deposit Account can

also be opened in the name of a minor jointly with natural guardian or with mother as the

guardian (known as Minor‟s Account) or jointly with a major, where minor is represented

by natural guardian.

b) Minors above the age of 10 years may be allowed to open and operate Savings Bank

Account independently. The minor‟s accounts are not allowed to be overdrawn and that

these always remain in credit. KYC norms & due diligence of minor should be ensured

while opening and operating these accounts.

c) On attaining majority on the same day account should be inoperative till the time customer

converts the minor account to major with required KYC documents. Thus, Banks should

initiate the prior communication to Minor accounts that would attain to majority.

d) On attaining majority, the erstwhile minor should confirm the balance in his/her account

and if the account is operated by the natural guardian / guardian, fresh specimen signature of

the erstwhile minor duly verified by the natural guardian would be obtained and kept on

record.

e) However, in case of NRIs, Minor‟s Account will be opened with Natural Guardian and

continued to be operated in this manner till he / she attains majority.

7. Account of Illiterate Person

The Bank may at its discretion open deposit accounts of illiterate person. The account of

such person may be opened provided he/she calls on the Bank personally along with a

witness who is known to both the depositor and the Bank. Normally, no cheque book facility is

provided for such Savings Bank Account. At the time of withdrawal/ repayment of deposit

amount and/or interest, the account holder should affix his/her thumb impression or mark in

the presence of the authorized officer who should verify the identity of the person. The

Bank will explain the need for proper care and safe keeping of the pass book etc. given to

the account holder. The Bank official shall explain the terms and conditions governing the

account to the illiterate person.

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8. Accounts of Transgender persons

In case of a person claiming to be transgender and needs to open account or to do any

banking transaction, the person will be recognized as “Transgender” and the details shall be

accepted in the AOFs/ or other applicable forms as such. The salutation of such person shall be

“Mx”. All transgender customers shall be treated equally to other male/ female customers

without any discrimination.

9. Account of visually challenged persons

Bank will facilitate opening of saving bank accounts as well as term deposit accounts to blind/

visually challenged persons in his/ her sole name or jointly with other person(s) with cheque

book facility provided, account is operated personally. Such account holders will have to be

present before the branch official and sign/ affix thumb impression and they will be identified

through their photograph to facilitate operations. Bank is also committed in introducing

technology banking facilities progressively via a tm & internet banking in keeping with the

availability of supporting technology which will enable visually challenged persons to operate

their own accounts.

10. Account of Persons with Autism, Cerebral Palsy, Mental Retardation & Multiple

Disabilities

Savings Bank and Term Deposits can also be opened in the name of persons with autism,

cerebral palsy, mental retardation and multiple disabilities by the legal guardian appointed by the

District Court under Mental Health Act, 1987 or by the Local Level Committees set up under

the National Trust for welfare of persons with autism, cerebral palsy, mental retardation and

multiple disabilities under Disabilities Act, 1999. However, if the proposed customer is a minor,

the account can be opened as represented by the Natural Guardian, by one of the natural

parents.

11. Banking facility for Senior Citizens and Differently Abled Persons

Dedicated Counters/Preference to Senior Citizens, Differently abled persons - Branches shall

provide a clearly identifiable dedicated counter which provides priority to senior citizens &

differently abled persons including visually impaired persons.

a) Cheque Book Facility - Banks shall not insist on physical presence of senior citizens and

differently abled persons for getting cheque books and may issue cheque books, on

requisition, by any other mode as per bank's laid down policy i.e. to hand over cheque

book to a third party whose signature is attested by the customer on the reverse of

requisition slip or by a separate authorisation letter. As per the present custom, cheque

books are dispatched to customers‟ residential address by post under acknowledgement.

b) Additional Facilities to visually impaired customers

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a. Wherever thumb or toe impression of the sick / old / incapacitated account holder is

obtained, it should be identified by two independent witnesses known to the bank,

one of whom should be a responsible bank official.

b. Where the customer cannot even put his / her thumb impression and also would

not be able to be physically present in the bank, a mark can be obtained on the

cheque / withdrawal form which should be identified by two independent

witnesses, one of whom should be a responsible bank official.

c. The customer may also be asked to indicate to the bank as to who would withdraw

the amount from the bank on the basis of cheque / withdrawal form as obtained

above and that person should be identified by two independent witnesses. The

person who would be actually drawing the money from the bank should be asked

to furnish his signature to the bank.

d. In case of a person who cannot sign due to loss of both hands, can use the toe

impression, provided that it is witnessed by two independent witnesses known to the

bank, one of whom should be a responsible bank official.

c) Ease of filing Form 15G/H - Senior citizens and differently abled persons, shall be

advised once in a year (preferably in April) to submit Form 15G/ 15H within the stipulated

time, by SMS / Mail.

d) Door Step Banking - In view of the difficulties faced by senior citizens of more than 70

years of age and differently abled or infirm persons (having medically certified chronic

illness or disability) including those who are visually impaired, branch manager at his

discretion may provide door step banking facilities such as pick up of cash and

instruments against receipt, delivery of cash against withdrawal from account, delivery of

demand drafts, submission of Know Your Customer (KYC) documents and Life certificate at

the premises / residence of such customers.

12. Addition or Deletion of the name/s of joint account holders

The Bank may at the request of all the joint account holders allow addition or deletion of

name/s of joint account holder/s if the circumstances so warrant or allow an individual

depositor to add the name of another person as a joint account holder. This facility will be

available only in the case of operative accounts and not for Term deposit accounts.

1) Individuals resident in India have been permitted to include non-resident close

relative(s) (relatives as defined in section 2 (77) of the Companies Act, 2013) as a joint

holder(s) in their resident Bank accounts on 'Either or Survivor' basis subject to the

following conditions:

a) Such account will be treated as resident bank account for all purposes and all

regulations applicable to a resident bank account shall be applicable.

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b) Cheques, instruments, remittances, cash, card or any other proceeds belonging to the

NRI close relative shall not be eligible for credit to this account.

c) The NRI close relative shall operate such account only for and on behalf of the

resident for domestic payment and not for creating any beneficial interest for himself.

d) Where the NRI close relative becomes a joint holder with more than one resident in

such account, such NRI close relative should be the close relative of all the resident

bank account holders.

e) Where due to any eventuality, the non-resident account holder becomes the survivor of

such an account, it shall be categorized as Non-Resident Ordinary Rupee (NRO)

account as per the extant regulations.

f) Onus will be on the non-resident account holder to keep AD bank informed to get the

account categorized as NRO account and all such regulations as applicable to NRO

account shall be applicable.

g) The above joint account holder facility may be extended to all types of resident

accounts including savings bank account.

2) Non-Resident (External) Rupee Account Scheme (NRE Account) - Joint accounts can

be opened by two or more NRIs and/or PIOs or by an NRI / PIO with a resident

relative(s) on ‘former or survivor’ basis. However, during the life time of the NRI / PIO

account holder, the resident relative can operate the account only as a Power of Attorney

holder.

3) Non-Resident (Ordinary) Account Scheme – NRO account - The accounts may be held

jointly with residents on „ former of survivor’ basis. NRIs and PIOs may hold an NRO

account jointly with other NRIs and PIOs

13. Customer Information

The customer information collected from the customers will not be used for cross selling of

services or products by the Bank, their subsidiaries and affiliates. If the Bank proposes to use

such information, it should be strictly with the consent of the account holder.

14. Secrecy of Customer’s Accounts

The Bank shall not disclose details/particulars of the customer‟s account to a third person or

party without the express or implied consent from the customer. However, there are some

exceptions, viz. disclosure of information under compulsion of law, where there is a duty to

public to disclose and where interest of the Bank requires disclosure.

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15. Issuance of Term Deposit Advice

Term Deposit Advices in lieu of Term Deposit Receipts are introduced w.e.f 1st June 2019.

The main benefits of the new initiative are:

The deposit details are readily available as soft copy via email for the customer

reference.

Loss/damage can be avoided.

Deposit Advice is not required as part of documentation for availing Loan Against

Deposit

Deposit Advice is not mandatory for closure at branches

Economical and supports the green concept of the bank

No safe custody of deposit receipts or maintenance of deposit register required which

will save man hours at branches.

16. Premature withdrawal of Term Deposit

The Bank on request from the depositor, at its discretion may allow closure / withdrawal of

deposit before completion of the period of the deposit agreed upon at the time of placing the

deposit. However, interest rate applicable, at the time of placing the deposit, as applicable to

prematurely closed period shall be paid for the period it has remained with the Bank, after

applying the penal rates if any and not at the contracted rates. Further, the effective rate will be

the net of applicable rate for the period of deposit remained with the Bank (less the penal

rate) or the net of original contracted rate (less the penal rate) whichever is less. The Bank

shall make depositors aware of the applicable penal rate along with the deposit rate upfront,

while accepting the deposit. The interest rates including the applicable penal rates shall be

fixed by the ALCO of the Bank from time to time. As per extant RBI guidelines, minimum

tenor of a domestic rupee Term Deposit & NRO Term Deposit account is 7 days and that of NRE

& FCNR (B) Term Deposit is 1 year. No interest shall be paid, where premature withdrawal of

deposit takes place before completion of minimum period specified above.

17. Premature renewal of Term Deposit

In case the depositor desires to renew the deposit by seeking premature closure of an

existing deposit account, the Bank will permit the renewal at the applicable rate on the date of

renewal. While prematurely closing a deposit for the purpose of renewal, interest on the

deposit for the period it has remained with the Bank will be paid at the rate applicable to the

period for which the deposit remained with the Bank, after applying the penal rates if any, and

not at the contracted rate. Further, the effective rate will be the net of applicable rate for the

period of deposit remained with the Bank (less the penal rate) or the net of original

contracted rate (less the penal rate) whichever is less. The Bank shall make depositors aware

of the applicable penal rate along with the deposit rate upfront, while accepting the

deposit. The interest rates including the applicable penal rates shall be fixed by the ALCO of

the Bank from time to time.

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18. Renewal of Term Deposits / Overdue Term Deposits

When a Term Deposit is renewed on maturity, interest rate on renewed deposit for the

period specified by the depositor as applicable on the date of maturity would be applied. If

request for renewal is received after the date of maturity, such overdue deposits will be

renewed with effect from the date of maturity at interest rate applicable as on the due date,

provided such request is received within 14 days from the date of maturity. In respect of

overdue deposits renewed after 14 days from the date of maturity, interest for the overdue

period will be paid as follows.

If the deposit matures on/ after August 22, 2008 and proceeds are unpaid, the amount left

unclaimed with the Bank will attract Savings Bank rate of interest . No interest will be paid

for deposits lying unpaid with the Bank prior to this period. Bi-dating of deposits is not allowed

where the overdue period exceeds 14 days.

19. Advances against deposits

The Bank may consider request of the depositor/s for Loan / Overdraft Facility against any

Term Deposits including recurring deposits except against those opened under “Tax Gain

Scheme” and “Security Deposit”. It is not mandatory for the customer to submit the Deposit

Advice for availing loan. Necessary loan documents shall be collected and mark lien against the

deposit in the system. The Bank may also consider loan against deposit standing in the name of

minor, however, a suitable declaration stating that loan is for the benefit of the minor, is to be

furnished by the depositor – applicant.

20. Settlement of dues in deceased deposit account

If the depositor(s) has/have registered a Nomination with the Bank, the balance

outstanding in the account of the deceased depositor(s) will be paid to the nominee after

the Bank satisfies itself about the identity of the nominee. In the case of joint accounts,

the nominee‟s right arises only after the death of all the depositors..

In a joint deposit account, when one of the joint account holders dies, the Bank is required

to make payment jointly to the legal heirs of the deceased person and the surviving

depositor(s). If the joint account holders had given mandate for disposal of the balance in

the account in the forms such as "either or survivor, former / latter or survivor, anyone of

survivors or survivor; etc., the payment will be made as per the mandate to the survivors

to avoid delays in production of legal papers by the heirs of the deceased.

In the absence of nomination and when there are no disputes among the claimants, the

Bank will pay the amount outstanding in the account of deceased person against joint

application and indemnity by all legal heirs / surety(s) (where applicable) or the person

mandated by the legal heirs to receive the payment on their behalf without insisting on

legal documents up to the limit approved by the bank's board. This is to ensure that the

common depositors are not put to hardship on account of delays in completing legal

formalities.

Bank may call for Succession Certificates from the legal heirs of deceased depositors in

cases a) where there are disputes and all the legal heirs do not join in indemnifying the

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Bank and b) in certain other cases where the Bank has a reasonable doubt about the

genuineness of the claimant(s) being the only legal heir(s) of the depositor.

21. Interest payable on Term Deposit in deceased account

a) In the event of the death of the depositor before the date of maturity of the deposit and

amount of the deposit is claimed after the date of maturity, the Bank shall pay interest at the

contracted rate till the date of maturity. From the date of maturity to the date of payment,

the Bank shall pay simple interest at the applicable rate operating on the date of maturity, for

the period for which the deposit remained with the Bank beyond the date of maturity as per

the Bank‟s policy in this regard.

b) If the amount of deposit is claimed before the date of maturity, interest at the rate applicable to

the period for which the deposit has remained with the Bank without deducting any penal

interest will be paid.

c) However, in the case of death of the depositor after the date of maturity of the deposit,

interest shall be paid at the contracted rate till the date of maturity and the Bank shall pay

interest at Savings Deposit rate operative on the date of maturity, from the date of maturity till the

date of payment.

22. Interest Rate on Term Deposits

As per extant RBI guidelines, Bank has the freedom to fix their own interest rates on Term

Deposits of various maturities with the prior approval of their respective Board of Directors /

Asset Liability Management Committee (ALCO). Bank is, however, not allowed to discriminate in

the matter of interest paid on deposits, between one deposit and another, accepted on the same

date and for the same maturity, whether such deposits are accepted at the same office or at

different offices of the Bank. Interest rates paid by the Bank should be as per the schedule

and should not be subject to negotiation between the depositor and the Bank. The interest rate

offered shall be reasonable, consistent, transparent and available for supervisory review / scrutiny

as and when required. Interest rate on NRE/NRO deposits shall not be higher than those offered

by the Bank on comparable Domestic Rupee Term Deposits.

a) Rupee Term Deposit : Bank is allowed to offer differential rate of interest on domestic

Term Deposits on the basis of the following:

b) Tenor of Deposits : Bank is allowed to offer differential rates of interest on Term Deposits on

the basis of tenor.

c) Size of Deposits : Bank is allowed to offer differential rates of interest on the basis of

quantum for single Term Deposits of Rs. 2.00 crore and above.

d) Availability of early withdrawal option : With effect from April 16, 2015 Bank has been

allowed the discretion to offer differential interest rates based on whether the Term

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Deposits are with or without-premature-withdrawal-facility, subject to the following

guidelines:

e) All Term Deposits of individuals (held singly or jointly) of Rupees 15 lakh and

below should, necessarily, have premature withdrawal facility.

f) For all Term Deposits other than above, Bank can offer deposits without the option

of premature withdrawal as well. However, it will be ensured that at the customer

interface point the customers are, in fact, given the option to choose between Term

Deposits either with or without premature withdrawal facility.

g) Bank shall disclose in advance the schedule of interest rates payable on deposits i.e.

all deposits mobilized by Banks should be strictly in conformity with the published

schedule.

h) As per the extant RBI guidelines, domestic savings and Term Deposits in the name of

staff / retired staff are eligible for additional interest. Domestic Term Deposit accounts

in the name of senior citizens are eligible for additional interest rate as per the

extant RBI guidelines.

Foreign Currency (Non Resident) accounts (Banks) Scheme : In addition to the

conditions laid down herein above, interest on deposits accepted or renewed under FCNR

(B) scheme will be in accordance with the following terms and conditions:

1) The deposits under Foreign Currency (Non Resident) accounts (Banks)

Scheme is permitted only for Tenor/s as given below.

One year and above but less than two years

Two years and above but less than three years

Three years and above but less than four years

four years and above but less than five years

Five years only.

2) Bank shall not accept or renew FCNR (B) deposits exceeding five years and no

recurring deposits will be accepted under the FCNR (B) scheme.

3) Interest on FCNR (B) deposits accepted under the scheme shall be calculated on

the basis of 360 days to a year.

4) Interest rate on FCNR (B) deposit will be calculated and paid at the interval of 180

days each and thereafter for the remaining actual number of days.

5) Payment of interest will be rounded off to two decimal places for FCNR (B)

deposits.

6) The interest rate ceiling on FCNR (B) Deposits shall be as per the guidelines issued

by RBI from time to time. The extant guidelines of RBI on FCNR (B) interest rate

ceiling is as follows:

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Period of Deposit Ceiling rate

One year to less than 3 years LIBOR/Swap plus 200 basis points

Three years and above up to and including 5 years LIBOR/Swap plus 300 basis points

7) The LIBOR/Swap rates quoted/displayed by Foreign Exchange Dealers Association of

India (FEDAI) shall be used as reference for arriving at the interest rate on FCNR

(B) deposits.

21.1. Interest Calculation Methodology

a) Savings Account: The bank shall provide uniform interest rate on Savings Bank

Deposits Accounts up to Rupees one lakh, irrespective of the amount in the account

within this limit and for Savings Bank exceeding Rupees one lakh, a bank may provide

differential rates of interest. Interest on Savings Bank Accounts including frozen accounts,

shall be credited to the account on a quarterly basis w.e.f. 01/03/2016. Interest is

calculated on daily product basis.

b) Rupee Time deposits held in Domestic, Ordinary Non-Resident (NRO) and Non-

Resident External (NRE) Accounts: In case of cumulative deposits, interest is

compounded quarterly. For term deposit with tenor less than three months or where the

terminal quarter is incomplete, interest on a monthly basis for every completed months

and for incomplete months proportionately for the actual number of months and days,

reckoning the year at 365 days, even in case of leap years. In case of non- cumulative

deposits, interest is paid out quarterly or monthly, based on the account opening date.

(as preferred by the customer).

c) FCNR Deposit Accounts: Interest on cumulative deposits accepted for a period of

more than one year is compounded at intervals of 180 days each and thereafter for

remaining actual number of days. In case of non-cumulative deposits, interest is paid out

half yearly. Interest rates are subject to change without any prior notice and the same

will be published in our website

23. Insurance cover for deposits

All Bank deposits are covered under the insurance scheme offered by Deposit Insurance and

Credit Guarantee Corporation of India (DICGC) subject to certain limits and conditions. The

details of the insurance cover in force will be made available to the depositor. The maximum

insurance cover as on date of review of this policy is Rs 1,00,000/- for both principal and

interest amount held by the customer in the same right and same capacity as on date of

liquidation / cancellation of Bank‟s license or the date on which the scheme of amalgamation

/ merger / reconstruction comes into force.

24. Stop payment facility.

The Bank will accept stop payment instruction from the depositors in respect of cheques

issued by them. Charges, as specified, will be recovered.

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25. Dormant Accounts

A Savings Account as well as Current Account should be treated as inoperative / dormant

account, if there are no customer induced transactions in the account for a period of two years.

Such accounts will be transferred to a separate dormant / inoperative account status in the

interest of the depositor as well as the Bank. The depositor can request the Bank to activate

the account for operating it after submitting a written request in the prescribed form and the

required KYC documents like Proof of identification / address etc. There will not be any charge

for activation of inoperative account.

26. Redressal of complaints and grievances

Depositors having any complaint / grievance with regard to services rendered by the Bank have

a right to approach authority/ (ies) designated by the Bank for handling customer

complaints / grievances. The details of the internal set up for redressal of complaints /

grievances will be displayed in the branch premises. The branch officials shall provide all

required information regarding procedure for lodging the complaint. In case the depositor does

not get response from the Bank within a period of one month after the Bank received the

complaint, or the Bank rejects the complaint, or if the complainant is not satisfied with the

reply given by the Bank; he has a right to approach Banking Ombudsman appointed by the

Reserve Bank of India.

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