Policy On Bank Deposits

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, 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. It is expected that this document will impart greater transparency in dealing with the individual customers and create awareness among customers of their rights.
While adopting this policy, the Bank reiterates its commitments to individual customers outlined in Code of Bank's Commitments to Customers formulated by Banking Codes And Standards Board of India. This document is a broad framework under which the rights of common depositors are recognized. Detailed operational instructions and terms and conditions of various deposit schemes and related services have been issued separately which are subject to change from time to time.
This policy is designed for you, our customers, and includes the following sections:

1- TYPES OF DEPOSIT ACCOUNTS
While various deposit products offered by the Bank are assigned different names. The deposit products can be categorised broadly into the following types. Definition of major deposits schemes are as under:

"Demand deposits" means a deposit received by the Bank which is withdrawable on demand.
"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.
"Term deposit" means a deposit received by the Bank for a fixed period withdrawable only after the expiry of the fixed period and include deposits such as Recurring / Short Term Deposits / Fixed Deposits /Monthly Income Certificate /Quarterly Income Certificate, Re-Investment Certificates, etc.
“Notice Deposit” means term deposit for specific period but withdrawable on giving atleast one complete banking day's notice.
"Current Account" means a form of demand deposit wherefrom withdrawals are allowed more frequently 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- ACCOUNT OPENING & OPERATION OF DEPOSIT ACCOUNTS

The Bank before opening any deposit account will carry out due diligence as required under "Know Your Customer" (KYC) guidelines issued by Reserve Bank of India (RBI) and or such other norms or procedures adopted by the Bank. The due diligence process, while opening a deposit account will involve verifying the identity of the person, signature and address and understanding 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.
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.
The Bank would provide the account opening forms and other material to the prospective depositor. The same will contain details of information to be furnished and documents to be produced for verification and or for record.
The regulatory guidelines require banks to categorise 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 of the account after due notice(s) is provided to the customer.
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 and Current Deposit Accounts 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 cheques books, additional statement of accounts, duplicate pass book, folio charges, issue of debit cards, any branch banking facility, 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. The same will also be displayed on the Bank’s website.Refer Schedule of Charges & Fees
Eligibility:
- Savings Bank Accounts can be opened for eligible person / persons and certain organizations / agencies in compliance with RBI guidelines.
- Current Accounts can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs / Specified Associates / Societies / Trusts, etc.
- Term Deposits Accounts can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs/ Specified Associates / Societies / Trusts, etc.
- Deposit accounts can be opened by an individual in his own name (known as account in single name) or by more than one individual in their own names (known as Joint Account) . Savings Bank Account can also be opened by a minor jointly with natural guardian or with mother as the guardian (known as Minor's Account).
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 Savings Bank Account opened by minor jointly with natural guardian / guardian can be operated by natural guardian only.
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 alongwith interest, if applicable, will be paid to survivor on death of anyone of the account holders.
- Anyone or Survivor/s : If the account is held by more than two individuals say, A, B and C, the final balance alongwith interest, if applicable, will be paid to the survivor on death of any two account holders.
- Former or Survivor : If the account is held by two individuals say, A & B, the account shall be operated by and the balance alongwith interest, if applicable, will be paid to A, i.e. the first-named account holder during his life time and only after his death, by and to B, the second named account holder if then surviving.
At the request of the depositor, the Bank will register mandate / power of attorney given by him authorizing another person to operate the account on his behalf.
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. These instructions can be modified any time before the date of maturity. In absence of such mandate, the Bank will automatically renew the term deposit for the same period as the original deposit at the prevailing rates at the time of renewal
Nomination facility is available on all deposit accounts opened by the individuals. Nomination is also available to a sole proprietory 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.
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.
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 Saving Bank account holders.
The Savings Bank and Current Deposit accounts may be transferred to any other branch of the Bank at the request of the depositor by closure of the account and opening a new account at the desired branch, subject, however, to providing satisfactory address verification. Term Deposits can be transferred to another branch on maturity.

3- INTEREST PAYMENTS

In terms of RBI directives on Deregulation of Savings Bank Deposit Interest Rate, the Bank is required to offer a uniform interest rate on savings bank deposits upto Rs.1 lakh, irrespective of the amount in the account within this limit. For savings bank deposits over Rs.1 lakh, the Bank may provide differential rates of interest, as approved by the Board of the Bank, if it so chooses.
The Bank within the general guidelines issued by the RBI from time to time decides term deposit interest rates. Interest shall be calculated at quarterly intervals on term deposits and paid at the rate(s) decided by the Bank depending upon the period of deposits, amount of deposits, etc. In case of monthly deposit scheme, the interest shall be calculated for the quarter and paid monthly at discounted value.
The Bank in accordance with the formulae and conventions advised by Indian Banks Association calculates the interest on term deposits.
The rate of interest on deposits will be prominently displayed in the branch premises as well as displayed on Bank's website. Changes, if any, with regard to the deposit schemes and other related services shall also be communicated upfront and shall be prominently displayed.
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 and for every fresh deposit made during the financial year.

4- MINORS' ACCOUNTS

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 14 years. The account can also be opened jointly.
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- ACCOUNT OF ILLITERATE/BLIND PERSON
The Bank may at its discretion open deposit accounts other than Current Accounts of illiterate/blind 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. Banking facilities including cheque book facility / operation of ATM etc. would be provided in 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.

6- 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.

7- CUSTOMER INFORMATION
The customer information collected from 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 shall be strictly with the consent of the accountholder

8- 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.

9- 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.

10- PREMATURE RENEWAL OF TERM DEPOSIT
In case the depositor desires to renew the deposit by seeking premature closure of an existing term deposit account, the bank will permit the renewal 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.

11- RENEWAL OF OVERDUE TERM DEPOSIT
When a term deposit is renewed on maturity, on renewed deposit interest rate 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 simple rates applicable for Savings Bank Deposits.

12- ADVANCES AGAINST DEPOSITS
The Bank may consider at its discretion request of the depositor/s for loan / overdraft facility against term deposits duly discharged by the depositor/s on execution of necessary documents and subject to such conditions as it may deem proper. The Bank may also consider loan against deposit standing in the name of minor, provided a suitable declaration stating that loan is for the benefit of the minor, is furnished by the depositor - applicant.

13- SETTLEMENT OF DUES IN DECEASED DEPOSIT ACCOUNT
The Bank shall settle dues in deceased deposit accounts as per the simplified procedure outlined by RBI in this regard.
Please refer document Settlement of Deceased Claims available at branches as well as on our website.

14- INTEREST PAYABLE ON TERM DEPOSIT IN DECEASED ACCOUNT

In the event of death of the depositor before the date of maturity of 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 obtaining 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.
However, in the case of death of the depositor after the date of maturity of the deposit, the bank shall pay interest at savings deposit rate obtaining on the date of maturity from the date of maturity till the date of payment.

15- 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. At present, bank deposits upto Rs.500,000/- in respect of each of the depositors is covered under the scheme. The details of the insurance cover in force, will be made available to the depositor.

16- 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.

17- DORMANT ACCOUNTS
Accounts where there are no transactions for a continuous period of 2 years will be transferred to a separate dormant account status in the interest of the depositor as well as the Bank. The depositor will be informed of charges, if any, which the Bank will levy on dormant accounts. The depositor can request the Bank to activate the account for operating it.

18- SAFE DEPOSIT LOCKERS
The Bank offers Safe Deposit Lockers at select Branches. For further details, please refer document on Lockers available at branches as well as on our website.

19- REDRESSAL OF COMPLAINTS & GRIEVANCES
The Bank is committed to providing convenient and reliable solutions to help customers achieve their financial goals. We consider customer satisfaction as a critical measure of our success.
With the objective redressing customer grievances, we have formulated a comprehensive Grievance Redressal Policy.
Refer Grievance Redressal Policy on our website.
June 24, 2013

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