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 .
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
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
of Deposit Accounts : -
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
Notice Deposit means term deposit for specific period
but withdrawable on giving atleast one complete banking
"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.
C) 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.
D) 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)
Accounts can be opened by individuals / partnership firms
/ Private and Public Limited Companies / HUFs / Specified
Associates / Societies / Trusts, etc.
Deposits Accounts can be opened by individuals / partnership
firms / Private and Public Limited Companies / HUFs/ Specified
Associates / Societies / Trusts, etc.
E) 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
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
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.
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
J) 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.
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.
M) 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 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.
i) 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
OF ILLITERATE / BLIND PERSON
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
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
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
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
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.
RENEWAL OF TERM DEPOSIT
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.
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. .
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.
OF DUES IN DECEASED DEPOSIT ACCOUNT
i) 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.
ii) The above procedure will be followed even in respect
of a joint account where nomination is registered with
iii) 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
iv) 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.
Cover for Deposits
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.
Bank will accept stop payment instruction from the depositors
in respect of cheques issued by them. Charges, as specified,
will be recovered.
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.
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
of complaints and grievances
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.