|
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. 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 Bankers' Fair Practice Code
of Indian Banks' Association. 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.
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 / Double Benefit Deposits / Short Deposits / Fixed Deposits /
Monthly Income Certificate / Quarterly Income Certificate 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 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.
Account Opening and 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 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 him and the
final decision of the Bank will be conveyed at the earliest to him.
-
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.
-
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 cheques
books, additional statement 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.
-
Savings Bank Accounts can be opened for eligible person / persons and certain
organizations / agencies (as advised by Reserve Bank of India (RBI) from time
to time).
-
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.
-
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.
-
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.
-
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 10 will also be allowed to
open and operate saving bank account independently.
-
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 : i) 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. ii) 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. The above mandates 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.
-
A 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. In absence of such mandate, the
Bank will seek instructions from the depositor/s as to the disposal of the
deposit by sending an intimation before 15 days of the maturity date of term
deposit.
-
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 these
account holders.
-
The deposit accounts may be transferred to any other branch of the Bank at the
request of the depositor.
Interest Payments
-
Interest shall be paid on saving account at the rate specified by Reserve Bank
of India directive from time to time. However, 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 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.
-
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.
-
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.
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
10 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.
ACCOUNT OF ILLITERATE / BLIND PERSON
-
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 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 passbook etc. given to the account holder. The
Bank official shall explain the terms and conditions governing the account to
the illiterate / blind person.
ADDITION OR DELETION OF THE NAME/S OF JOINT
ACCOUNT HOLDERS
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 should be strictly
with the consent of the accountholder.
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.
PREMATURE WITHRAWAL 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.
PREMATURE RENEWAL OF TERM DEPOSIT
-
Incase 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.M
RENEWAL OF OVERDUE TERM DEPOSITS
-
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 at the rates decided by the Bank from time to time.
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, however, a suitable declaration stating that
loan is for the benefit of the minor, is to be furnished by the depositor -
applicant.
SETTLEMENT OF DUES IN DECEASED DEPOSIT ACCOUNT
-
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.
-
The above procedure will be followed even in respect of a joint account where
nomination is registered with the Bank.
-
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.
-
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 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 hardship on account of
delays in completing legal formalities.
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.
Insurance Cover for Deposits
Stop Payment Facility
Dormant Accounts
-
Accounts which are not operated for a considerable period of time will be
transferred to a separate dormant / inoperative 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 / inoperative accounts.
The depositor can request the Bank to activate the account for operating it.
Safe Deposit Lockers
-
This facility is not offered through all bank branches and wherever the
facility is offered, allotment of safe deposit vault will be subject to
availability and compliance with other terms and conditions attached to the
service. Safe deposit lockers may be hired by an individual ( being not a
minor) singly or jointly with another individual(s), HUFs, firms, limited
companies, associates, societies, trusts etc. Nomination facility is available
to individual(s) holding the lockers singly or jointly. In respect of lockers
held in joint names, up to two nominees can be appointed. Joint locker holders
can give mandate for access to the lockers in the event of death of one of the
holders on the lines similar to those for deposit accounts. In the absence of
nomination or mandate for disposal of contents of lockers, with a view to avoid
hardship to common persons, the bank will release the contents of locker to the
legal heirs against indemnity on the lines as applicable to deposit accounts.
Redressal of complaints and grievances
-
Depositors having any complaint / grievance with regard to services rendered by
the Bank has a right to approach authority(ies) designated by the Bank for
handling customer complaint / 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 60 days 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.
|
