Fixed deposit are deposits payable after a fixed period of time. It carries only
simple interest payable monthly /quarterly/ half yearly annually.
Period of Deposit
The minimum period of Fixed Deposit is 15 Days and maximum
period is 10 Years. However bank may accept deposit for period exceeding 10
Years in terms of order of the competent court or where interest of minors are
involved and where there is valid reason for accepting the deposit for a longer
period. The period of deposit may be extended up to a maximum of 20 years in the
case of institutions government undertakings, corporate bodies to meet there
special needs like creation of sinking fund, amourtisation fund etc., or for
individuals for any other needs.
Opening of A/C
The amount may be tendered in cash or by way of cheques or
drafts. The minimum amount for a fixed deposit is Rs.100/-.If the deposit
amount is exceeds Rs.50000/- the amount will be accepted as cheques only other
wise the Income Tax Permanent account number is must.
A fixed deposit account can be opened by
a) a person in
his/her own name;
b) two persons
or more than two persons in their joint names in anyone of the following
forms:
Accounts in the name of Mode of
operation
A &
B Either or Survivor
A &
B Jointly or Survivor
A &
B Former or Survivor
A, B &
C Anyone or Survivors or Survivor
c) a sole proprietorship concern, partnership firm, Private and
Public Limited companies, Joint Hindu families, associations, clubs, societies,
trust, executors as administrators etc.,
The clause repayable to either or survivor/former or
survivor/anyone or more or survivor(s) includes the right to the survivor(s) to
apply before the date of maturity for repayment or for credit facilities against
the security of the deposit.
The clause repayable to Former or Survivor includes the right
to the Former to apply before the date of maturity for repayment or for credit
facilities against the security of the deposit or change in the name of the
survivor without the consent of the survivor(s). In view of the survivorship
clause facilitating the survivor to get payment of the balance on the due date,
it is desirable for constituents to opt for "Either or Survivor" or "Former or
Survivor" account.
Payment of Intrest
Interest at the rates and intervals as applicable from time to
time will be paid. At present interest is payable at quarterly intervals. In
case the depositors desire to receive the interest at monthly intervals,
interest will be paid less discount. The discount is the equivalent of the
proportionate monthly interest. (For example, discount on Rs.1000 at 8% is 1000
x 8/1208 = Rs.6.62). Interest may also be credited to an account as per the
depositor's discretion. As per the RBI directive all payments of interest and
principal will be rounded off to the nearest rupee. The interest payment is
subject to the rules on tax deduction at source
Due date is recorded on the deposit receipt to enable the
depositor either to renew the deposit or receive payment of the amount due.
Every effort will be made to send due date advice to enable the depositor to
give instructions to renew/demand payment on the due date. If a deposit matures
on a holiday, it becomes payable only on the succeeding working day and interest
at contracted rate is payable from the date of maturity till the date of
succeeding working day.
Overdue deposits Interest
When deposits are not renewed or payment has not been received on the due date,
they are transferred to overdue deposit. If the deposit is not renewed with in
15 days from the due date of the deposit then the broken period interest will be
given up to the date of renewal and the new deposit will renewed from the date
of presentation. The rate of interest for broken period and renewal will only
the rate on which the deposit is presented.
Discharge of Deposit
All deposits receipts should be surrendered duly discharged for repayment or
seeking credit facilities against the deposit.
Transferability
Cash Certificate Receipts are not transferable between persons by endorsement.
But cash certificates are transferable from one branch to another, if they are
situated in the different cities.
Loans against Deposit
Loans may, at the discretion of the bank, be granted subject to a maximum of 90%
of the deposit amount, at the rate( Usually 2% over the Deposit rate) prescribed
by the Bank from time to time.
Pre Closure
The bank may, at its discretion, consider payment of the deposit before the due
date subject the rate of the deposit may be 1% lesser than the actual interest
for that period the deposit is completed. The bank having right to change the
penal provisions applicable from time to time.
Lien Nomination
General Lien:
The bank has and reserves to itself the right to appropriate the
deposit towards depositor’s obligation either individually or jointly with any
other person.
Nomination:
The facility of nomination is available for Cash Certificate
accounts.
Claims
On the death of the depositor who has been maintaining the account in his/her
single name, the amount standing to his/her credit will be paid to such person
or persons as are legally entitled thereto, on the production of satisfactory
proof of his/her/their title to receive the balance at credit, such as
succession certificates, probate of will or letter of administration granted by
a competent court or any other proof as the bank may consider sufficient to the
circumstances of the case. However, if the depositor(s) has/have nominated a
person to receive the payment of the deposit amount after his/her/their death
under the bank's Nomination rules then the bank is discharged on making payment
to the nominee.
Payment of Deposit
Payment of deposit amount including interest, if exceeds Rs.20000
or the aggregate amount of deposits held by the customer in his sole name or
jointly with others, on the date of payment of any one deposit exceeds Rs.20000,
will be made by way of Account Payee crossed cheque/draft or by way of credit to
SB/CD or Loans of the depositor(s).
