1.
INTRODUCTION
One of the important functions of the Bank 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 recognises 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 deposits 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.
While
adopting
this policy, the bank reiterates its commitments to individual
customers outlined in 'Code of Banks' Commitment to Customers'.
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.
DEFINITIONS
The
various
deposit products offered by the Bank can be categorised broadly into
the following types. Definitions 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. At present term deposits
are accepted under the following schemes.
·
Fixed
Deposit
·
Abhyudaya
Cash Certificate
·
Soulabhya
Deposit
·
Cumulative
Deposit
·
Honey
Deposit
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.
3. ACCOUNT OPENING AND OPERATION OF DEPOSIT ACCOUNTS
3.1. The Bank before opening any deposit account will
carry out due diligence as required under "Know Your Customer" (KYC)
guidelines issued by
RBI and or such other norms or procedures adopted by the Bank. If the
decision to open an account of a prospective depositor requires
clearance at a higher
level, reasons for any delay in opening of the account will be
informed to the customer and the final decision of the Bank will be
conveyed at the earliest to
the customer.
3.2. The 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.
3.3. 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 Saving
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 statement of accounts,
duplicate
passbook, 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.
3.4. Savings Bank Accounts can be opened by eligible
person/persons and certain organizations/ agencies (as advised by
Reserve Bank of
India (RBI) from time to time)
3.5. Current Accounts can be opened by individuals/
partnership firms/ Private and Public Limited Companies/ HUFs/
Specified Associates/
Societies/ Trusts etc.
3.6. Term
Deposits Accounts can be opened by individuals/ partnership firms/
Private and Public Limited Companies/ HUFs/ Specified Associates/
Societies/ Trusts etc.
3.7. The
minimum tenor of domestic deposit is 7 days and maximum 120 months.
However, in case of minors, the deposit may be kept till the minor
attains majority i.e. 18
years. However, each cycle of deposit shall not be more than 10
years.
3.8. The due diligence process, while opening a deposit
account will involve satisfying about the identity of the person,
verification of address,
satisfying about his occupation and source of income. Obtaining
introduction of the prospective depositor from a person acceptable to
the Bank and obtaining
recent photograph of the person/s opening/ operating the account are
part of due diligence process.
3.9. In addition to the due diligence
requirements under KYC norms, the Bank is required by law to obtain
Permanent
Account Number (PAN) or General Index Register (GIR) Number or
alternatively declaration in Form No. 60 or 61 as specified under the
Income Tax Act/ Rules.
3.10. 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 jointly
with natural
guardian or with mother as the guardian (Status: known as Minor's
Account).Minors above the age of 12 will also be allowed to open and
operate saving bank
account independently.
3.11. 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 joint account holders. The
Savings Bank Account opened by minor jointly with natural guardian/
guardian can be operated
by natural guardian only till the minor attains majority.
3.12. The joint account holders can give any of the
following mandates for the disposal of balance in the above accounts:
3.12.1 Either or
Survivor: If the account is held by two individuals say, A & B,
the final balance along with interest, if applicable, will be paid to
either of the
depositors on maturity or survivor on death of anyone of the account
holders.
3.12.2 Former or
survivor or No.1 or Survivor/s:If the account is held by two
individuals say, A, B and C, the final balance
along with interest, if applicable, will be paid to former or No.1 of
the depositors on maturity or survivor/s on death of former or No.1 of
the account
holders.
3.12.3
Anyone or
Survivor/s: If the account is held by more
than two individuals say, A, B and C, the final balance along with
interest, if
applicable, will be paid to anyone of the depositor on maturity or to
the survivor on death of any two account holders.
3.12.4
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.
The
above mandates will be applicable to or become operational during the
tenure of the term deposit and on or after the date of maturity of
term deposits. This
mandate can be modified by the consent of all the joint account
holders.
3.13. At the request of the depositor,
the Bank will register mandate/ power of attorney given by the
customer authorizing
another person to operate the account on his behalf.
3.14.
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 on the date
of maturity. In the absence of such mandate, the Bank will seek
instructions from
the depositor/s as to the disposal of the deposit by sending
intimation before 15 days of the maturity date of term deposit by post
or courier at the last known
address of the depositor.
3.15.
Nomination facility is available
on all deposit accounts opened by individuals. Nomination is also
available to a sole
proprietary concern account. Nomination can be made in favour of one
individual only. Nomination so made can be cancelled or changed by the
account holder/s
any time. While making nomination, cancellation or change thereof, it
is required to be witnessed by a third party. Nomination can be
modified by the
consent of account holder/s. Nomination can be made in favour of a
minor also.
3.16. 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.
3.17. A pass book will be provided by
the Bank to Savings Bank and a statement of account to Current
Deposit Account Holders
periodically as per terms and conditions of opening of the account.
3.18. The
deposit accounts may be transferred to any other branch of the Bank at the
request of the depositor.
3.19. If
the dealings/ transactions in the account are not satisfactory i.e.
detrimental to the interest of the Bank, the Bank reserve the right to
close the account by
giving 30 days notice.
3.20.
Bank
reserves the right to amend, delete, or add any rules at any time and
such
alterations in the rules will be notified by affixtures to the notice
Board which shall be deemed to be sufficient notice to the customer.
3.21.
Deposit
receipt for fresh/renewal of term deposits will be generally issued on
the same
day.
4. MINORS'ACCOUNTS
4.1. The minor can open Savings Bank Account and the
same can be operated by the natural guardian or by minor himself/
herself, if he/ she is
above the age of 12 years. The account can also be opened
jointly.
4.2. 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 erstwhile minor duly
verified by the natural guardian would be obtained and kept on record
for all
operational purposes.
5.SENIOR CITIZENS' ACCOUNTS
Bank may
consider
higher rate of interest to Resident Indian Senior citizens who have
completed the age of 60 years on their fixed deposits as specified by
the bank from time
to time. Priority will be given in the services to the Senior
Citizens. Separate Queue will be provided to the senior citizens in
front of every
counter whenever required.
6. NRI
SERVICES
Bank
offers vide
range of deposit schemes for Non Resident Indians which includes Non
Resident Rupee account (NR(E)RA), Foreign Currency Non- Resident Account
(FCNR),Non-Resident Ordinary Account (NRO), Resident Foreign Currency
(Domestic ) Account (RFCD).Opening and maintaining of Bank Accounts of
Non- Resident
Indian is guided by the Foreign Exchange Management Act-1999 (FEMA)
and interest on terms deposits are revised based on LIBOR rates from
time to time.
7.
ACCOUNT
OF ILLITERATE
The Bank
may at
its discretion open deposit accounts other than Current Accounts of
illiterate person. The account of such person may be opened provided
he/ she call 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
passbook etc. given to the account holder. The Bank official shall
explain the terms and conditions governing the account to the
illiterate/ blind person.
8.
ACCOUNT
OF VISUALLY IMPAIRED PERSONS
All Banking
facilities including cheque book facility, operation of ATM/ locker,
Internet Banking etc are offered to Visually challenged without any
discrimination.
9.
ACCOUNT OF OLD/SICK/INCAPACITATED CUSTOMERS
While
allowing operation of the
accounts by old/Sick/Incapacitated customers the following procedure
will be followed:
9.1
Whenever
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.
9.2 Where
the
customer can not even put his/her thumb impression and also would not
be able to be physically present in the bank, a mark obtained on the
cheque/withdrawal
form should be identified by two independent witnesses, one of whom
should be a responsible bank official.
10. DORMANT
ACCOUNTS
Accounts
which
are not operated for two years will be reckoned as dormant accounts.
The depositor will be informed of charges, if any, which the Bank will
levy on
dormant/ inoperative accounts. The depositor can request the Bank to
activate the account for operating it.
11.FROZEN
ACCOUNTS
11.1 At the
request of the depositor, frozen term deposit will be renewed for
a period equal to the original period.
11.2 In
case of
savings bank accounts prevailing practice of crediting the interest to
the account on regular basis will be continued.
12. DIRECTIVES ON INTEREST PAYMENT AND TERM DEPOSITS
12.1
Interest
Payments
12.1.1
Interest
shall be
paid on Savings Bank account at the rate specified by Reserve Bank of
India directive from time to time. Interest on Savings Bank shall be
calculated on
the on a daily product basis with effect from April 1, 2010 and
credited to the account in March and September every year.
12.1.2 Term deposit interest rates are decided by
the Bank within the general guidelines issued by the Reserve Bank of
India from time to
time. In terms of Reserve Bank of India directive, interest shall be
calculated at quarterly intervals on term deposits and paid at the
rate decided by the
Bank depending upon the period of deposit. Interest at monthly
interval at discounted rate is also offered. Bank will adopt the "Code
for Banking
Practice" issued by the Indian Banks Association for the purpose of
calculation of interest on domestic term deposits.
12.1.3 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 by prominently displaying
it at branch premises and on the website.
12.1.4 The
Bank has statutory obligation to deduct tax at source if the total
interest paid/ payable on all term deposits held by a person exceeds
the amount
specified under the Income Tax Act. The Bank will issue a tax
deduction certificate (TDS Certificate) for the amount of tax
deducted. The depositor, if
entitled to exemption from TDS can submit declaration in the
prescribed format at the beginning of every financial year.
12.1.5 In
case of term deposits maturing on or after 22.08.2008 ( i.e thedate of
issue of RBI circular) interest applicable to savings bank accounts
will be paid from
the date of maturity up to the date of payment of the deposit.
12.1.6 Payment
of aggregate deposit and interest of Rs.20000/- and above shall be
routed through the operative account of the depositor as per the
provisions of Sec.269
T of the Income Tax Act 1961.
12.2
Premature
Withdrawal Of Term Deposit
The Bank on
request from the depositor, at its discretion may allow withdrawal of
term deposit before completion of the period of the deposit agreed
upon at the time
of placing the deposit. The Bank shall declare their penal interest
rates policy for premature withdrawal of term deposit. The Bank shall
make depositors
aware of the applicable rate along with the deposit rate.
12.3
Premature Renewal of Term Deposit
/Conversion of term deposits, daily deposits or recurring deposits for
reinvestment
in term deposits
Incase
the
depositor desires to renew/convert the term deposit, daily deposit or
cumulative deposit by seeking premature closure of an existing term
deposit
account, the bank will permit the renewal / conversion at the
applicable rate on the date of renewal, provided the deposit is
renewed for a period longer
than the balance period of the original deposit. 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 and not at the
contracted rate.
However, no interest is payable, where premature withdrawal of deposit
takes place before completion of the minimum period
prescribed.
12.4 Renewal
of
Overdue Term Deposits
If
request
for renewal is received on or 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 30 days from the date of maturity. In respect of overdue
deposits renewed after 30 days
from the date of maturity, interest for the overdue period will be
paid at the rate decided by the Bank from time to time.
12.5. Advances against Deposits
The Bank
may
consider request of the depositor/s for loan/ overdraft facility
against term deposits duly discharged by the depositor/s on execution
of necessary security
documents. The Bank may also consider loan against deposit standing in
the name of minor for the benefit / necessity of the minor only, on
submission of
undertaking letter/ affidavit by the guardian.
12.6 Payment of interest on term deposit maturing
on Sunday/holiday/non-business working day
In
respect of a term deposit maturing for
payment on a Sunday or a holiday or a non-business working day (or
Saturday in case of NRE deposits), the bank should pay interest at the
originally
contracted rate on the deposit amount for the
Sunday/holiday/non-business working day (as also Saturday in case of
NRE deposits) intervening between the
date of the expiry of the specified term of the deposit and the date
of payment of the proceeds of the deposit on the succeeding working
day.
13. DECEASED DEPOSITORS' ACCOUNT
13.1. Interest Payable on Term Deposit
in Deceased Depositors' Account
13.1.1. In case of premature closure of a term deposit
of a deceased depositor interest be paid at the applicable rate (not
contract rate)
for the actual period for which the deposit remained with the Bank
without penalty.
In case of death of a depositor interest at the contracted rate be paid up to the maturity of the deposit. From the date of maturity up to the date of settlement/payment, simple interest will be paid
to the term deposit for the period from the due date to the date of payment atthe applicable rate prevailing on the due date or on the date of payment,whichever is less.
13.1.2.
In the case of balances lying in
current account standing in the name of a deceased individual
depositor/sole
proprietorship concern, interest should be paid only from
1st May,1983, or from the date of death of the depositor,
whichever is later, till the
date of repayment to the claimant/s at the rate of interest applicable
to savings deposit as on the date of payment
13.2. Settlement of Dues in Deceased Depositors' Account
13.2.1. If the depositor has registered nomination with the Bank, the balance outstanding in the account of the deceased depositor will be
transferred to the account of/ paid to the nominee after the Bank satisfies about the identity of the nominee, etc.
13.2.2. The above procedure will be followed even in
respect of a joint account where nomination is registered with the
Bank.
13.2.3. 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). However, 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
avoid delays in production of legal papers by the heirs of the
deceased.
13.2.4 In case there is no nomination or clause like "Either
or Survivor" or "Former or Survivor" the amount outstanding in the
account will be
paid to the persons entitled as per the applicable law of Succession
on production of prescribed documents. Necessary machinery for the
purpose is in
place.
Amount up to Rs.10,000/ will be paid to the surviving legal
representatives on the basis of Death Certificate and Declaration
only.
14.
SETTLEMENT OF CLAIMS IN RESPECT OF MISSING PERSONS
Considering that there is inherent risk in settling the claims of Missing persons without the Court raising presumption of death, insistence on such raising of presumption by the Court will be general policy. However, with a view to avoid inconvenience and undue hardship to the common person claims upto Rs.50,000.00 in respect of missing persons (irrespective of the period of the missing) would be settled as per the existing settlement machinery. On production of
(i) FIR and the non-traceable report issued by Police Authorities.
(ii) Letter of Indemnity (by claimants). Further, Chairman is authorised to settle claims of missing person (irrespective of the period of the missing) upto total sum of Rs.2.00 lakh taking into account facts and circumstances of each case on production of :
i) FIR and the non-traceable report issued by Police Authorities.
ii) Letter of Indemnity by claimants and from creditworthy third persons (if need be)
15. SAFEGUARDING CUSTOMER INTERESTS
15.1. Customer Information
The customer information collected from the customers shall 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 will be strictly with the consent of the account holder, obtained at the time of account opening or subsequently.
15.2. 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 expressed 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.
15.3. 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.
16. ROUNDING OFF OF TRANSACTIONS
All transactions, including payment of interest on deposits/charging of interest on advances, should be rounded off to the nearest rupee; i.e., fractions of 50 paise and above shall be rounded off to the next higher rupee and fraction of less than 50 paise shall be ignored.Issue prices of cash certificates should also be rounded off in the same manner.
17. REDRESSAL OF COMPLAINTS AND GRIEVANCES
Depositors' having any complaint / grievance with regard to services rendered by the Bank has a right to approach concerned Branch Head first. If the complaint is not redressed to the satisfaction of the customer, the matter may be taken up with the internal set up for redressal of complaints/ grievances as displayed in the branch premises and Code of Bank's Commitment to Customers. 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 one month from date of complaint or he is not satisfied with the response received from the Bank, he has a right to approach Banking Ombudsman appointed by the Reserve Bank of India.
18. POLICY REVISION
This policy is subject to revision based on the extant RBI guideline from time to time.
