COMMON AREAS OF CUSTOMER-BANKER RELATIONSHIP



TERM DEPOSIT ACCOUNTS

Bank has come out with various deposit schemes to suit the needs and expectations of investing people in every walk of life.

Branch staff shall welcome you to seek more details and shall also be glad to assist in the area of investment in various deposit schemes vis-a- vis your requirement.

Term Deposit accounts can be opened by individuals, partnership
firms, private and public limited companies, HUFs / specified associates, etc.

1. As required by law, while opening this account the Bank will satisfy itself about the identity, including verification of address, of a person/s seeking to open an account, to assist in protecting the prospective customer/s, members of the public and the Bank against
fraud and other misuses of the banking system.

2. The Bank requires a satisfactory introduction of the person / s opening
the account by a person acceptable to the Bank

3. The Bank is required to obtain recent photographs of the person /s opening the account, as per R.B.I. directives.

4. The Bank is required to obtain Permanent Account Number (PAN) or General Index Register (GIR) Number or alternatively obtain declaration in Form No. 60 or 61 as per the Income Tax Act (vide Section 139 A) from the person/s opening the account.

5. The Bank will provide to the prospective customers details of the documents required for identification of the person opening the account in addition to a satisfactory introduction. Documents normally accepted are the current gas/telephone/electricity bill or voter's identity card or driving license or passport, etc.

6. Premature withdrawals are allowed, unless specified otherwise, at the rate of interest applicable for the period for which the deposit has run or the contracted rate whichever is lower, subject to penalty, if any prescribed by the Bank. No interest will be paid on premature withdrawals of deposit which has remained with the Bank for less than 15 days.

7. Generally loans/overdrafts against deposits are allowed except on Certificates of Deposit (CD). Such loans are sanctioned by charging interest at rates directed by RBI from time to time or as prescribed by the Bank.

8. Deposits are renewed by the Bank on due dates on request. If not requested specifically, it will be renewed for the same period as earlier. The customer may opt for auto renewal facility while opening the account. As a measure of good customer service, the Bank may intimate the depositor in advance regarding date of maturity.

9. Interest on deposits is payable quarterly or is compounded quarterly (i.e., reinvestment of interest) or on the date of maturity as applicable under a particular deposit scheme. Interest may also be paid every month at discounted value of the quarterly interest or at the
option of the depositor.

10. Interest on overdue deposit is paid if the deposit is renewed, as decided by the Bank from time to time.

11. Interest on bank deposits is exempt from income tax upto a limit specified by Income Tax authorities from time to time.

12. Presently, if the total interest on deposits, per financial year exceeds Rs.5,000/-, the same is subject to Tax Deduction at Source (TDS) at the rates stipulated by the Income Tax Authorities.

13. The depositor may furnish declaration in Form No. 15 H preferably at the commencement of the Financial Year for receiving interest on deposits without deduction of tax.

14. The Bank will issue TDS Certificate for the tax deducted.

15. Deposits are accepted for a maximum period of 10 years. Exceptions are made in terms of orders of Competent Courts or in case of minors where interest of minors is involved.

16. Payment to the Depositor will be made only by means of an account payee cheque / demand draft or by way of credit to his account in case the amount of all the deposits (at the Branch) together with interest, held by a person in his own name or jointly with any other person is Rs.20,000/- or more on the date of repayment of any or more of the deposits. The same rule is applicable where the repayment of interest alone is Rs.20,000/- or more.