Deposit Policy

 

CUSTOMERS ARE MOST IMPORTANT VISITORS IN OUR PREMISES THEY ARE NOT DEPENDENT ON US WE ARE DEPENDENT ON THEM. WE ARE DETERMINED TO SERVE THEM IN PARTICULAR AND OUR COMMUNITY AS A WHOLE  IN GENERAL WITH SMILE TO THEIR UTMOST SATISFACTION  THROUGH COOPERATIVES

TYPES OF DEPOSIT ACCOUNTS

The Deposit Products offered by the bank are broadly categorised in the following types.

1. Savings Bank Account
2. Current Account
3. Term Deposits

ACCOUNT OPENING AND OPERATION OF DEPOSIT ACCOUNTS

Savings Bank Account: -

Savings Bank account as the very name suggests is intended for savings for the future. There are no restrictions on the number and amount of deposit that can be made on any day. Minimum amount of withdrawal / deposit is Rs.10/-. Balance in the account earns interest at rates advised by the Head Office from time to time. The facility of withdrawal by cheque is also allowed subject to certain restrictions. These accounts can be opened by eligible persons and also certain organisations and agencies (as approved by the RBI).

As required by Law, while opening the account, we will satisfy ourselves about the identity, including verification of address of a person/s seeking to open an account, to assist in protecting the prospective customers, members of the public and ourselves against fraud and other misuse of the Banking system duly observing the Know your customer (KYC) guidelines of RBI.

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

•  The bank is required to obtain 2 recent photographs of the person/s opening the account.

•  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.

•  The Bank will provide to the prospective customers details of the documents required for identification of the person/s 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 pass port or Ration card etc.

•  The account holder is required to maintain minimum balance in the account, as specified by the Bank from time to time. Bank has discretion to change the above norms and levy charges for non-compliance of the same. However, adequate notice will be given informing the change/s. Interest as prescribed by RBI is paid on half yearly basis on minimum balance between the 10 th day and last day of the month, provided it works out minimum Re.1.

•  Issue of cheque book is subject to satisfactory operation in the account. However issue of multiple Cheque books is the discretion of the Branch Manager and subject to charges.

•  Cheques, Dividend warrants drawn in the name of account holder/s will only be collected through the account. (Financial instruments endorsed in favour of the account holder/s will not be collected through SB account.)

•  Pass book is provided to customer and updated periodically.

Current Account: -

Current Accounts are designed to meet the needs of such sections of the public who operate their account regularly and frequently. i.e. Traders, Businessmen, Corporate bodies or the like who receive money and make payments very often. Current accounts are suitable to such category of customers as there are no restriction on the number of withdrawal or deposit. Current accounts can be opened by individuals, partnership firms, Private & Public Ltd Co., HUFs, / Specified associates, Societies, Trusts, etc.

As required by law, while opening the account, we will satisfy ourselves about the identity, including verification of address of the person/s seeking to open an account to assist in protecting the prospective customers, public and ourselves against fraud and other misuse of the Banking system duly observing the KYC guidelines of RBI.

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

•  The Bank is required to obtain 2 photographs of all the person/s who is opening and operating the account.

•  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 (i.e. including partners or registered / unregistered partnership as also registered / incorporate bodies / companies).

•  The Bank will provide to the prospective customers details of the documents required for identification of the person/s opening the account in addition to a satisfactory introduction. Minimum Balance as stipulated from time to time is required to be maintained by the customers.

•  No interest is paid on credit balance kept in Current Account.

•  Service charges are levied for ;

1.       Cheque books issued

2.       Non-maintenance of minimum balance

3.       Return of cheques, etc

•  The applicant (i.e.account opener) should declare in the account opening form or separately that he is not enjoying any credit facility with any bank and if he does enjoy any facility/ies he should declare full particulars thereof indicating the name of the bank, branch where from he has availed these facilities and also submit no objection certificate from financing bank/institution.

•  Statement of account is provided to the account holder monthly or more frequently as per the arrangement.

•  Stop Payment facility – The bank will accept stop payment instructions from the depositors in respect of cheques issued by them (subject to maintenance of required balance). Charges as specified will be recovered.

Term Deposit Account:

The deposits received by the bank for a fixed period withdrawable after the expiry of the fixed period and includes deposits such as Recurring / Fixed /Term etc.

Term Deposits can be opened by individuals, partnership firms, Private / Public Ltd Co.s, HUFs,/ Institutions/Societies/Trusts etc.

As required by law, while opening the account we will satisfy ourselves about the identity, including verification of address of the person/s seeking to open an account to assist in protecting the prospective customers, public and ourselves against fraud and other misuse of the Banking system duly observing the KYC guidelines of RBI.

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

•  The Bank is required to obtain 2 photographs of all the person/s who is opening and operating the acount.

•  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.

•  The Bank will provide to the prospective customers details of the documents required for identification of the person/s opening the account in addition to a satisfactory introduction by Persons & entities already having operative accounts such as SB, current account etc. need not provide the above documents for opening of the Term Deposit accounts.

•  Premature withdrawals are allowed unless specified otherwise, at the rate of interest applicable for the period for which the deposit has run ruling on the date of deposits , subject to penalty if any prescribed by the bank.

•  Premature extension / renewal of term deposit –

In case the depositor desires to renew the deposit by seeking premature closure of an existing term deposit, the bank will permit the renewal at the applicable rate on the date of renewal, provided the deposit has run for a minimum period of 15 days and 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 remained with the bank and not the contracted rate.

•  Generally loans / overdrafts against deposits are allowed except on Certificate of Deposit (CD). Such loans are sanctioned by charging interest at rates announced from time to time by the bank. 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 submitted by the depositor applicant.

•  Deposits are renewed by the bank on due dates on request. Wherever the depositor has executed the option of automatic renewal in the account opening form, the bank may renew the deposit until the instructions are revoked in writing. The bank intimates the depositor in advance regarding the date of maturity.

•  Interest on deposit is payable either monthly or quarterly or half yearly.

•  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 extended. If request for renewal is received after the date of maturity, such overdue deposit will be renewed with effect from the date of maturity at the interest rate applicable as on the due date, provided such request is received within 14 days from the date of maturity. In respect of deposits renewed after 14 days from the date of maturity, the deposits will be renewed from the date of maturity for the period requested applying the rate of interest ruling on the date of maturity or on the date of renewal whichever is lower, subject to renewal for a period not less than 15 days from the date of renewal.

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

•  Interest on bank deposits is exempt from Income Tax up to a limit specified by Income Tax authorities from time to time.

•  Presently, if the total interest on deposits, per depositor per branch per financial year exceeds Rs.5000/-, the same is subject to Tax deducted at source (TDS) at the rate stipulated by the Income Tax authorities.

•  The depositor may furnish declaration in form No.15-G/ 15-H preferably at the commencement of the financial year for receiving interest on deposits without deduction of tax.

•  The Bank will issue TDS certificate for the tax deducted.

•  Interest payable on the deposit of a deceased depositor

1.       Where the amount of deposit is claimed before maturity by premature closure:

                                 i.            Where claimant is non-resident:

a.       Where the deposit has not completed the minimum period of deposit, i.e., 1 year, no interest is payable.

b.       Where the deposit has completed the minimum period of deposit, interest is payable at the rate of interest applicable for the period run as prevailing on the effective date of deposit, WITHOUT PENAL CUT.

                               ii.            Where claimant is resident:
As in 1 (i) above.

2.       Where the amount of deposit is claimed during the tenure of the deposit, but settlement is made after the maturity date.

                                 i.            Where the claimant is non-resident:
Interest is payable at the contracted rate till the date of maturity. For the period from the date of maturity till the date of payment, simple interest is payable at the applicable interest rate for FCNR (B) deposits as prevailing on the date of maturity for the period for which the deposit remained with the bank beyond the date of maturity.

                               ii.            Where the claimant is resident:
Branch will convert the maturity proceeds into Indian Rupees on the maturity date. Interest on such Rupee amount is payable for the subsequent period form the date of maturity till the date of payment at a rate as applicable to domestic deposit of similar maturity.

3.       Where the amount of deposit is claimed after maturity date:

                                 i.            Where the claimant is non-resident:
As in 2 (i) above

                               ii.            Where the claimant is resident:
The foreign currency deposit proceeds will be first notionally converted into Rupees and on such Rupee amount, interest is payable for the subsequent period from the date of maturity till the date of payment at a rate as applicable to domestic deposit of similar maturity.

6. Addition or deletion of name/s of joint account holders

At the request of the joint account holders addition / deletion of name/s is permissible at the specific request of the depositor and all the depositors in case of joint accounts. 

NOMINATION

•  Nomination facility is available for all deposit accounts opened by the individuals.

•  Nomination facility is also available to a sole proprietorship 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.

•  Nomination can be made in favour of minor also for which date of birth of the minor and full details of the guardian is to be furnished.

•  Bank recommends that all the depositors avail nomination facility. The nominee in the event of death of the depositor/s could receive the balance outstanding in the account as a trustee of legal heirs. 

INSURANCE COVER FOR DEPOSITS

All bank deposits are covered under the Insurance Scheme of Deposit and Credit Guarantee Corporation of India (DICGC) subject to certain limits and conditions.

GENERAL 

JOINT ACCOUNTS:

Deposit accounts can be opened by an individual in his own name or by more than one individual subject to maximum of four persons, known as joint account. SB account can be opened by a minor jointly with natural guardian or with mother as guardian.

Operations of Joint account :

The joint account opened by more than one individual subject to a maximum of 4 persons 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 the joint account holders. In case of SB account opened by minor jointly with the natural guardian the operation is by the natural guardian only.

Transfer of accounts:

Current Account, SB, Term Deposits may be transferred from one branch to another branch within the bank at the request of the account holders subject to certain conditions.

Addition of names :

The Bank may at the request of the depositor/s allow addition of name/s subject to the condition that the total number of depositors does not exceed four in case of both the SB, CA & Term deposits. Deletions in name/s of depositor/s is also permitted, subject to the condition that one of the original depositors should continue to be a depositor.

Change in Rate of Interest:

The rate of interest on deposits will be prominently displayed in the branch premises apart from placing the same on our bank's website.

The changes if any with regard to the deposit schemes and other related services, shall also be communicated upfront and shall be prominently displayed. The same may also be published in newspaper.

Customer Information:

The customer information collected from the customers shall not be used for cross selling of services/ products by the bank, subsidiaries & affiliates. If the bank proposes to use such information, it shall be with the consent of the account holder/s.

Secrecy of the customer accounts:

The Bank shall not disclose details / particulars of the customers' accounts to a third person or party without the express or implied consent from the customer. However, there are some exceptions viz. Disclosure of information under compulsion of law, where there is a duty towards the public to disclose and where interest of the bank requires disclosure.

Inoperative accounts:

SB & CA accounts in which there are no operations for a period of 2 years and above from the date of last operation, except by way of any charges debited, or interest debited/credited will be treated as inoperative account. Service charges are levied to inoperative account. Depositor/s can revive the account. In case the balance is less than Rs.20/- account will be closed if there is no response from the depositor to the notice sent by the bank.

SPECIAL TYPES OF ACCOUNTS
      Minor accounts:
Minor accounts represented by the guardian:

According to the Indian majority act read with the Guardions & Wards Act,1890, a minor is one who has not completed 18 years of age, but in case of minor whose guardian is appointed by the Court, he /she remains minor up to the age of 21 years. In terms of Indian contract Act, the contracting parties should be major necessarily for the validity of the contracts. Hence, any contract with the minor is void ab-initio. Since the opening of the account forms contractual obligation between banker & customer, savings bank account in the individual capacity of the minor will not be opened. However there are exceptions to this rule.

Accounts in the name of minor himself:

SB accounts may be opened & operated by the minor himself for reasonable amounts, provided he has attained the age of 14 years and a literate. No cheque book will be issued to him.

Accounts in the name of students above the age of 12 years:

In branches/ extension counters which are situated within the campus of the Educational Institutions, a minor student who has attained the age of 12 years and who is studying in the Education Institution, opening of SB account will be considered.

Accounts of illiterate persons:

The Bank may at its discretion, open accounts of illiterate persons, after observing formalities for opening such accounts. No cheque book facility is provided for such accounts.

Accounts of Blind persons:

The Bank may at its discretion open deposit account in the name of blind person after observing all the formalities of the Bank for opening and operation of such accounts. Branch Manager at his discretion may issue cheque book with certain restrictions.

Repayment under Joint Deposits:

The joint account holder can give any of the following mandates for disposal of balance in the account.

1.       Either or survivor

2.       No.1 or survivor

3.       Jointly

Either or survivor : The Bank will be making payment of the maturity proceeds to the surviving depositor who presents the deposit receipt and furnishes the proper discharge without reference to the other depositor as well as to the legal heirs of the deceased depositor.

No.1 or survivor : If no.1 is not alive on the date of maturity the bank will be making payment to the survivor without reference to the legal heirs of no.1. If No.1 dies after maturity, the claim will be settled in favour of the survivor subject to production of a notarised indemnity for indemnifying the bank in case of the claim from legal heirs of the No.1.

Payable jointly : If one or more of the depositor dies on or after maturity, the amount will be paid jointly to the surviving depositors along with the legal heirs of the deceased depositor. 

SETTLEMENT OF DUES IN THE DECEASED DEPOSITOR’S ACCOUNT

•  If the depositor has registered nomination with the bank, the balance outstanding in the account of the deceased depositor will be settled in favour of the nominee after the bank is satisfied about the identity of the nominee.

•  The bank may not insist on succession certificate from the Legal heirs irrespective of the amount involved. However, the bank may adopt such safe guards in considering settlement of claims as appropriate including obtention of indemnity.

•  In the absence of nomination and where there are no disputes among the claimants, the bank will settle the claim in respect of the deceased person to his/ her legal heir after observing all the formalities.

•  In the case of NRE deposit where the claimant/s are residents, the deposit on maturity will be treated as domestic deposit and interest will be paid for the subsequent period at a rate applicable to the domestic deposit of a similar maturity.

•  Payment of interest : -

         i.            In respect of the deposit of the deceased closed before maturity and repaid to the legal heirs / representatives of the deceased depositor, interest is payable at the rate applicable for the period for which the deposit actually remained with the bank without any penal cut.

       ii.            In the event of the death of the depositor before the date of the maturity of the deposit and the 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 till the date of payment, the bank shall pay simple interest at the applicable rate prevailing on the date of maturity, for the period for which the deposit remained with the bank beyond the date of maturity.

      iii.            In the case of death of the depositor after the date of maturity the bank shall pay interest at SB rate prevailing on the date of maturity from the date of maturity till the date of payment. 

SAFE DEPOSIT LOCKERS

The facility available at all branches and  allotment of safe deposit locker will be subject to availability and compliance with other terms & conditions attached to the services. Safe deposit lockers may be hired by an individual (not being a minor) singly or jointly with another individual/s, HUFs, firms, Ltd. Co., associates, societies, trusts etc. Nomination facility is available to individual/s holding the locker singly or jointly. Joint locker holders can give mandate for access to the locker in the event of death of one of the holders on the line 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

To enable the customers to voice their grievances or offer suggestions for improvement in customer service,

In case of any complaint, the matter may be first brought to the notice of concerned Branch Manager for immediate redresses. If the complaint is not redressed to the satisfaction of the customer, the matter may be taken up with the GM .

 If the complainant still feels unsatisfied with the responses received, he can address his complaint to the High power committee constituted by the Board called as “Grievances  Cell and settlement committee “ to look in to all such issues  . This committee meets once in week at our Pahar Ganj Branch on every Monday between 4.45 PM to 8.00 PM

After exhausting the above machinery/channels, if the customer is not satisfied, he may write to Chairman  or  Managing Director of the Bank and even after this, if not satisfied he is free to take recourse to the following:

    [A] Can demand meeting with Board of Directors .

    [B] Can approach UBD of RBI , Sansad Marg ,New Delhi-110 001

    [C] Can approach RCS ,Sansad Marg , New Delhi.110 001

    [D] District Consumer Forum or State/National Commission under Consumer Protection Act, 1986. 

 

OUR COMMITMENT TO YOU 
We promise to: 
Act fairly and reasonably in all our dealings with you by
- meeting the commitments and standards laid down by the Board/RCS office/RBI.
- making sure our services meet relevant laws and regulations
- adhering to ethical principles of integrity and transparency 
Deal with speed and concern in respect of errors/mistakes by
- correcting mistakes quickly
- handling your complaints quickly
- reversing any bank charges that we apply by mistake/oversight 
Before you become a depositor, we will:
- give you clear information explaining the key features of the services you tell us or you are interested in.
- give you information on any type of account facility which we offer and may suit your needs.
-

tell you what information we need from you to prove your identity and address and to comply with legal and regulatory requirements, and once you have chosen an account or service, we will tell you how it works. 

When you open a single account or a joint account, we will give you information on your rights and responsibilities. 

We recommend that you avail nomination facility offered on all deposit accounts, articles in safe custody and safe deposit vaults. 

We will guide you how we will deal with deposits and other assets held with us in the name of a deceased person in the absence of nomination. 

You can find out about our interest rates by:
- looking at the notices in our branches
- over telephone from our branches
- looking on our website; or 

When you become a Depositor, we will give you information on the interest rates which apply to your accounts. 

At the time of opening of the account, we will inform you of the rate at which interest is paid on your savings deposits [presently, it is regulated by Reserve Bank of India ].

Upon your becoming a depositor, we will give you upfront details of any charges applicable to the services chosen by you. 

To help you manage your account and check entries on it, we will give you account statements at regular intervals except in cases where Pass Books have been provided.

We will normally provide you with a statement periodically as per our policy. You can ask us to provide you with account statements more often than is normally available on your type of account, but there may be a charge for this service. 

We will pay interest on funds involved if collection is delayed beyond the normal period as stipulated by RBI. 

We will act upon mandates given by you for direct debits (say ECS) and other standing instructions. 

If, within a reasonable period after the entry has been made on your statement there is a dispute about a cheque paid from your account, we will give you the cheque or a copy as evidence. 

In the event your cheque book, passbook  has been lost or stolen, or that someone else knows your  security information, we will, on your notifying us, take immediate steps to try to prevent these from being misused. 

We will treat all your personal information as private and confidential [even when you are no longer a customer]. We will not reveal transaction details of your accounts to a third party, including entities in our group, other than in the following four exceptional cases when we are allowed to do.

- If we have to give the information by law.
- If there is duty to the public to reveal the information\
- If our interests require us to give the information [for example, to prevent fraud] but we will not use this as a reason for giving information about you or your accounts [including your name and address] to anyone else, including other companies in our group, for marketing purpose.
- If you ask us to reveal the information, or if we have your permission to provide such information to our group/associate/entities or companies when we have tie-up arrangements for providing other financial service products. 

 

DEPOSITORS' RIGHTS

depositors are entitled to the following rights:

•  RIGHT TO INFORMATION

A depositor will have right to information about charges, quality and standard of the services offered by the Bank to enable him / her to take an independent decision.

•  RIGHT TO CHOOSE

A depositor will have the absolute freedom to choose among the various  services offered by the Bank to suit his / her requirements.

•  RIGHT TO AVAIL/UTILISE THE PRODUCTS AND SERVICES

A depositor will have the right to avail/utilise the services chosen by him / her without any intervention / obstacle.

•  RIGHT TO BE HEARD AND REDRESSAL OF GRIEVANCES

A depositor will have the right to be heard and seek redressal against deficient service / poor quality of services, unfair Trade practices and unscrupulous exploitation. This includes his/ her right to fair redressal of any genuine grievance relating to  services which he /she has chosen to utilise.

Board Of Directors
Janakpuri,  
New Delhi