The depositors are the major stakeholders of the Banking System; in fact the life line of the Bank, as such their interests are the key area of the regulatory framework of banking in India. The Reserve Bank of India is empowered to issue directives / advices on interest rates on deposits and other aspect regarding conduct of deposit account from time to time. With the liberalization in the financial sector / Banking industry and deregulation of interest rates, Banks are now free to formulate deposit products within the broad guidelines issued by Reserve Bank of India from time to time.
The Deposit Policy of the Bank outlines the principles in respect of formulation of various deposit products offered by the Bank and terms and conditions governing the conduct of the accounts keeping in view the rights of depositors and aims at dissemination of information with regard to various aspects of acceptance of deposit accounts, payment of interest on various deposit accounts, closure of deposit accounts, method of disposal of deposits of deceased account holders etc.
While adopting this policy, the Bank reiterates its commitments to individual customers and would help strengthen our relationship with them. This document is a broad framework under which the rights of common depositors are recognized. The 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 categorized broadly into the following types:
- "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 deposits" means a deposit received by the Bank for a fixed period withdrawable only after the expiry of the fixed period and includes deposits such as Recurring / Double Benefit Deposits / Short Term Deposits / Fixed Deposits / Monthly Income Certificate / Quarterly Income Certificate etc.
- “Notice Deposit” means term deposit for specific period but withdrawable on giving at least one complete banking day's notice;
- "Current Account" means a form of demand deposit where from withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount and shall also include other deposit accounts which are neither Savings Deposit nor Term Deposits;
- “Bulk Deposit” means a single Rupee term deposit of Rs. One Crore & Above which shall be accepted by our authorized branches as identified and updated by the HO RMD Department from time to time.
The Bank before opening any Bulk Deposit account will carry out due diligence as required under “Know Your Customer (KYC)” guidelines issued by RBI Anti Money Laundering rules and regulations and / or such other norms or procedures adopted by the Bank. For Bulk deposits of Rs. 2 crore and above, the opening of such deposit will be followed by letter of thanks and a personal visit to the office/residence of the depositor by the concerned Branch Head/ authorized official of the Branch. A confirmatory letter in the form of a ‘thank you’ note shall be sent to the beneficiary of the Bulk Deposit through post as well as SMS wherever mobile number is available giving necessary details.
Loans against bulk deposits will be sanctioned as per the discretionary power structure after necessary due diligence procedures and disbursement of loans shall be routed through the account in the name of beneficiary of such deposit only. Bank should desist from disbursing funds in third party account. However, if in any special circumstances, it is decided to disburse funds in third party accounts, the request shall be received from the beneficiary of the term deposit for disbursing funds in the third party account, the same shall be got confirmed from the beneficiary in whose name the FDR has been issued by the Branch official and proper KYC verification of the third party will be done before disbursing the amount in third party account.
The Bulk Deposit related transactions shall be continuously monitored/ reviewed by the respective Zonal offices and monitoring mechanism with HO RMD Deptt. Further at any time due to mismatching/ matching or otherwise if the Bulk Deposit policy requires any type of modification or new modalities to be adopted, it will be done by the HO RMD Department after approval by the Competent Authority/ Board.
Basic Savings Bank Deposit Account (BSBDA)
The bank is committed to provide basic banking services to disadvantageous section of the society. Banking services shall be offered to them through Basic Saving Bank Deposit Account (BSBDA) and accounts can be opened with relaxed customer acceptance norms as per regulatory guidelines. The Basic Saving Bank Deposit Account (BSBDA) will offer the following minimum facilities to the customers:-
- The 'Basic Savings Bank Deposit Account' will be considered a normal banking service available to all.
- This account shall not have the requirement of any minimum balance.
- )The services available in the account will include deposit and withdrawal of cash at bank branch as well as ATMs; receipt / credit of money through electronic payment channels or by means of deposit / collection of cheques drawn by Central / State Government agencies and departments.
- While there will be no limit on the number of deposits that can be made in a month, account holders will be allowed a maximum of four withdrawals in a month, including ATM withdrawals.
- Facility of ATM card or ATM-cum-Debit Card.
- The above facilities will be provided without any charges. Further, no charge will be levied for non-operation / activation of in-operative 'Basic Savings Bank Deposit Account'.
- The Bank would be free to evolve other requirements including pricing structure for additional value-added services beyond the stipulated basic minimum services on reasonable and transparent basis and applied in a non-discriminatory manner.
- The 'Basic Savings Bank Deposit Account' would be subject to RBI instructions and Bank’s guidelines on Know Your Customer (KYC) / Anti-Money Laundering (AML) for opening of bank accounts issued from time to time. If such account is opened on the basis of simplified KYC norms, the account would additionally be treated as a 'Small Account' and would be subject to conditions stipulated by the RBI / Bank from time to time.
- Holders of 'Basic Savings Bank Deposit Account' will not be eligible for opening any other savings bank deposit account in the bank. If a customer has any other existing savings bank deposit account in the bank, he / she will be required to close it within 30 days from the date of opening a 'Basic Savings Bank Deposit Account'.
- The existing basic banking 'no-frills' accounts will be converted to 'Basic Savings Bank Deposit Account' as per the instructions contained above.
Account Opening and Operation of Deposit Accounts
- The Bank before opening any deposit account or at the time of review of any deposit account shall carry out due diligence as required under "Know Your Customer" (KYC) guidelines issued by RBI, Anti Money laundering rules and regulations 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 shall be informed to him / her and the final decision of the Bank will be conveyed to him/her at the earliest.
- The account opening forms and other material would be provided to the prospective depositor by the Bank. The same shall contain details of information to be furnished and documents to be produced for verification and / or for record. The Bank official opening the account shall explain the procedural formalities and provide necessary clarifications sought by the prospective depositor when he / she approaches for opening a deposit account.
- The regulatory guidelines require bank to categorize customers based on risk perception and prepare profiles of customers for the purpose of transaction monitoring. Inability or unwillingness of a prospective customer to provide necessary information/details would result in the bank not opening an account.
- Inability of an existing customer to furnish details required by the bank to fulfill statutory obligations would also result in closure of the account after due notice(s) is given to the customer.
- For Deposit products like Savings Bank Account and Current Deposit Account, the bank shall 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 shall attract levy of charges as specified by the bank from time to time. For Savings 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 cheque books, additional statement of accounts, duplicate passbook, folio charges, etc. All such details, regarding terms and conditions for operation of the account and schedule of charges for various services shall be communicated to the prospective depositor while opening the account.
- Savings Bank Accounts can be opened for eligible person / persons (Single or Joint names) and certain organizations / agencies like HUF, Non Corporate Bodies, Clubs, Trusts, Societies Associations, Schools, Executor(s) / Administrator(s), Government Bodies, Semi – Government Departments, Recognized PF Accounts etc. (as advised by Reserve Bank of India from time to time).
- Current Accounts can be opened by Individuals /Sole Proprietors / Partnership Firms / Private and Public Limited Companies / HUFs / Specified Associates / Societies / Trusts, Departments of Authority created by Government (Central or State), Limited Liability Partnership, etc.
- Term Deposit Accounts can be opened by individuals /Sole Proprietors / partnership firms / Private and Public Limited Companies / HUFs / Specified Associates / Societies / Trusts, Departments of Authority created by Government (Central or State), Limited Liability Partnership, etc.
- The due diligence process, while opening a deposit account or at the time of review of account shall involve satisfying about the identity of the person, verification of address, satisfying about his / her occupation and source of income. Obtaining introduction of the prospective depositor from a person acceptable to the Bank and obtaining recent photographs of the person(s) opening / operating the account are part of due diligence process. Non-compliance of necessary requirements shall lead to refusals / closure of account, stoppage of operation in the account.
- In addition to the due diligence requirements, under KYC norms, the Bank is required by law to obtain Permanent Account Number (PAN) or alternatively declarations on 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 individuals 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 ten will also be allowed to open and operate SB account independently subject to restrictions on transactions. Minors account holder will be provided with cheque books and the withdrawal is restricted to self only through cheque book/ withdrawal slips. The cheque book issued to the minor in such cases will be marked as “ONLY SELF WITHDRAWL PERMITTED” .No overdraft shall be granted to these minors.
- 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 such guardian only. While withdrawing amount from the minors account, the Natural guardian/guardian shall give an undertaking that the amount withdrawn shall be utilized for the benefit of the minor.
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 along with interest, if applicable, shall 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 along with interest, if applicable, shall be paid to the survivor on death of any two account holders.
The above mandates shall 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.
Repayment of Term/ Fixed Deposits
- (a)If fixed/term deposit accounts are opened with operating instructions ‘Either or Survivor’, the signatures of both the depositors need not be obtained for payment of the amount of the deposits on maturity. However, the signatures of both the depositors may have to be obtained, in case the deposit is to be paid before maturity. If the operating instruction is ‘Either or Survivor’ and one of the depositors expires before the maturity, no pre-payment of the fixed/term deposit may be allowed without the concurrence of the legal heirs of the deceased joint holder. This, however, would not stand in the way of making payment to the survivor on maturity.
- In case the mandate is ‘Former or Survivor’, the ‘Former’ alone can operate/withdraw the matured amount of the fixed/term deposit, when both the depositors are alive. However, the signature of both the depositors may have to be obtained, in case the deposit is to be paid before maturity. If the former expires before the maturity of the fixed/term deposit, the ‘Survivor’ can withdraw the deposit on maturity. Premature withdrawal would however require the consent of both the parties, when both of them are alive, and that of the surviving depositor and the legal heirs of the deceased in case of death of one of the depositors.
- If the joint depositors prefer to allow premature withdrawals of fixed/term deposits also in accordance with the mandate of ‘Either or Survivor’ or ‘Former or Survivor’, as the case may be, a specific joint mandate from the depositors for the said purpose shall be obtained. In other words, in case of term deposits with "Either or Survivor" or "Former or Survivor" mandate, the Bank may allow premature withdrawal of the deposit by the surviving joint depositor on the death of the other, only if, there is a joint mandate from the joint depositors to this effect.
- The joint deposit holders may be permitted to give the mandate either at the time of placing fixed deposit or any time subsequently during the term / tenure of the deposit. If such a mandate is obtained, the Bank may allow premature withdrawal of term / fixed deposits by the surviving depositor without seeking the concurrence of the legal heirs of the deceased joint deposit holder. Such premature withdrawal would not attract any penal charge.
At the request of the depositor, the Bank shall register mandate / power of attorney given by him/her authorizing another person to operate the account on his/her 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 case any instructions is not received from the customer, even after giving notice, the deposit will be renewed, excluding deposits like PSB Fixed Deposit Tax Saver Scheme, Capital gain deposit, Bulk Deposit, Inter Bank Deposit, Online fixed Deposits and Deposits under lien, for the same period of time as the matured deposit at the prevailing rate of interest. The auto renewal of such deposits will be applicable up to the maturity value less than Rs. 1 crore.
The above amended guidelines with regard to automatic renewal of fixed deposits will be applicable to only FDRs maturing on or after the date (i.e 25.01.2017) of implementing above amended guidelines. The FDRs maturing before the date (i.e 25.01.2017) of its implementation shall be dealt as per existing guidelines contained in Para No.12 of this Policy.
Nomination facility is available on all deposit accounts opened by individuals. Nomination is also available to a sole proprietary concern account. Nomination can be made in favour of one individual only. Nomination so made can be cancelled or changed by all the account holder(s) any time. While making nomination, cancellation or change thereof, signatures of account holders do not require attestation by witnesses. However, thumb impression of the account holder requires attestation by two witnesses. Nomination can be modified by the consent of all account holder(s). Nomination can be made in favour of a minor also. “The acknowledgement of Nomination shall be given to all the customers irrespective of whether the same is demanded by the customers.
Bank recommends that all depositors avail nomination facility. The nomination facility availed by the depositor(s) shall be indicated on the passbook so that, in case of death of the account holder(s) their relatives can know from the pass book that the nomination facility has been availed of by the deceased depositor(s) and take suitable action. 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 shall be informed of the advantages of the nomination facility while opening a deposit account. In case the person opening an account still does not want to nominate, the bank will ask him to give a specific letter to the effect that he does not want to make a nomination. In case the person opening the account declines to give such a letter, the bank shall record the fact on the account opening form and proceed with opening of the account if otherwise found eligible.
A statement of account shall 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 shall issue a Pass Book to Savings Bank account holders.
The deposit accounts may be transferred to any other branch of the Bank at the request of the depositor(s). In case of joint account by all joint account holders. The KYC verification once done by one branch of the bank shall be valid for the transfer of the account within the bank if full KYC verification has been done for the concerned account and is not due for periodic updation. The customers will be allowed to transfer their accounts from one branch to another branch without restrictions, without insisting on fresh proof of address and/or identity and on the basis of a self-declaration from the account holder about his/her current address.
An Account to be introduced by an existing customer having account with our Bank for 6 months or more with satisfactory operation or by a well known person having good reputation and standing, acceptable to the Bank.
Since, introduction is not necessary for opening of accounts under PML Act and Rules or Reserve Bank’s extant KYC instructions, bank should not insist on introduction for opening bank accounts of customers provided the prospective customer provides documents of identity and address as required under the customer acceptance policy, to the satisfaction of the Bank.
- In terms of RBI instructions conveyed vide their Circular No. DBOD.Dir.BC.42 / 13.03.00 / 2011-12 dated 25.10.2011, with effect from October 25, 2011, Saving Bank Deposit interest rate are deregulated. Accordingly, Bank is free to determine its Savings Bank Deposit interest rate for resident Indians, subject to the following two conditions:
The Bank will offer a uniform interest rate on savings bank deposits up to Rs.1 lakh, irrespective of the amount in the account within this limit.
For Savings Bank deposits over Rs.1 lakh, Bank may provide differential rates of interest, subject to the condition that Bank will not discriminate in the matter of interest paid on such deposits, between one deposit and another of similar amount, accepted on the same date, at any of its offices.
Further, since HO RMD is determining the rates of interest on deposits and advances depending on the Asset Liability Matrix of the Bank. HO RMD may also determine the Saving Bank Deposit from time to time as per Bank’s ALM matrix.
- 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 shall 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 in the branch / placed on the website of the Bank.
- 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, 1961. The Bank shall 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 (Form 15G/15H) at the beginning of every financial year afresh.
Accounts of Minors
- A 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. ATM Card will be provided to minor above the age of 10 years subject to consent by parents/guardian for issuance of ATM/Debit card. ATM cash withdrawal limit & shopping limit (Point-of- sale & e-commerce) of Rs.5000/- per day is permitted.
Other basic rules governing the Savings Bank A/c will also be applicable to this account. Accounting procedure will be the same as that applicable to Savings bank deposit A/c. The account is to be introduced as per norms including independent verification of address. All other KYC norms should be observed in terms of KYC Policy and account be opened in single name of minor children.
There is no prescribed minimum balance and thus no penalty will be levied even if the balance comes down to zero any time. Maximum balance in the a/c should not exceed 50000/- . The total credit during a financial year will not exceed Rs.100000/-. NO OVERDRAFT will be allowed in such type of account.
Minors account holder will be provided with cheque books and the withdrawal is restricted to self only through cheque book/ withdrawal slips. The cheque book issued to the minor in such cases will be marked as “ONLY SELF WITHDRAWL PERMITTED”. Once the minor attain the age of 18 years the account will be converted to regular Savings Bank Deposit account.
- On attaining majority, the erstwhile minor shall 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 shall be obtained and kept on record for all operational purposes.
Account of Illiterate/ Blind Person
The Bank shall at its discretion, open deposit accounts other than Current Accounts of an illiterate person. The account of such persons (Illiterate / Blind) shall 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 shall be provided for such Savings Bank Account. At the time of withdrawal / repayment of deposit amount and / or interest, the account holder would affix his / her thumb impression or mark in the presence of the authorized officer who would verify the identity of the person. The Bank shall 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 person/ blind person.
Addition or deletion of the name(s) of Joint Account holders
The bank shall 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 account holder.
The information / data collected from the customer by the Bank can be shared / exchanged / used by the Bank or its Group Companies / Subsidiaries / Credit Bureaus / Statutory Bodies / Agencies / Financial Institutions or its / their Agents / Users etc. for processing or cross selling of its products.
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 express or implied consent of 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 withdrawal of term deposit
Bank on request from the Depositor shall allow withdrawal of Rupee Term Deposit before completion of the period of the deposit agreed upon at the time of placing the deposit. Bank will have the freedom to determine its own penal interest rate on premature withdrawal of term deposit. Bank has to ensure that depositors are made aware of the applicable penal rate along with deposit rate. However, Bank will have the discretion to disallow premature withdrawal of term deposit in respect of Bulk Deposit of Rs. 1 Crore & above in all depositors including deposits of individuals & HUFs. Bank has to notify such depositors of this policy of disallowing premature withdrawal in advance i.e. at the time of accepting the deposit.
The penalty for premature withdrawal of Term Deposits/ Bulk Deposits/ DRI Deposits shall be decided by HO RMD Department from time to time.
Premature termination of Term Deposit Account in Deceased Case
Premature termination of term deposit in the name of deceased depositor(s) shall be allowed to the survivor(s) / nominee / legal heir(s) of specifically permitted to the Bank by the depositor(s) at the time of issuance of such deposit.
Premature renewal of term deposit
In case the depositor desires to renew the deposit by seeking premature closure of an existing term deposit account, the bank shall 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 shall be paid at the rate applicable on the date of deposit for the period for which the deposit remained with the bank and not at the contracted rate.
Renewal of overdue term deposit
The Bank has amended the guidelines with respect to payment of interest on Overdue FDRs and these are as under:-
- (i)Renewal of Fixed Deposit on the date of Maturity: When a term deposit is renewed on maturity, interest rate for the period specified by the depositor as applicable on the date of maturity would be applied. Accordingly where Bank has the mandate for automatic renewal, the FDR will be renewed for an identical period on its due date at the interest rate applicable on the date of maturity for the period it is renewed.
- Renewal of Term Deposit within 14 days of Maturity: If any customer approaches the Bank for renewal of Fixed Deposit within 14 days of the date of its maturity, the FDR shall be renewed from its date of maturity at rate of interest applicable on the date of maturity for the period for which FDR is renewed.
- Renewal of Term Deposit after 14 days of Maturity: Where overdue period i.e. from the date of maturity till the date of renewal (both days inclusive) exceed 14 days, such overdue term deposits shall be renewed with effect from the date of presentation for a minimum period of 15 days or more as specified by the depositor beyond the date of presentation and Interest for the overdue period shall be paid on the amount being renewed (equal to or less than the Maturity Value of the Original Deposit) at Savings Bank rate of interest as applicable from time to time, presently being 3.5% up to 20 lakh & 4% above 20 lakh on the methodology as applicable to Saving Bank account from time to time.
If such renewed overdue domestic term deposit is tendered for premature encashment, rate of interest would be payable for the period for which the FDR has run from date of renewal subject to penal interest, wherever applicable, from time to time.
- Non – Renewal / Closure of Overdue Term Deposit: If the term deposit is not renewed but encashed after the date of maturity, the overdue interest will be paid at prevailing Saving Bank rate applicable from time to time for the overdue period (from the date of maturity till the date of payment).
These guidelines are applicable to all Overdue FDRs, irrespective of the date of becoming ODFD i.e whether these FDRs have become overdue “before 06.04.2015” or “on or after 06.04.2015”.
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 at applicable rates of interest. 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 / natural / legal guardian.
Settlement of dues in 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 transferred to the account of / paid to the nominee after the Bank is satisfied 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.
- (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 / later 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 from time to time. This is to ensure that the common depositors are not put to hardship on account of delays in completing legal formalities.
Interest payable on term deposit in deceased account
In the event of death of depositor (s) before or after the date of maturity of the deposit where 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 to the date of payment, the overdue interest will be paid at Saving Bank rate applicable from time to time for the overdue period.
Insurance Cover for Deposits
All 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 depositors.
Stop Payment Facility
The Bank shall accept stop payment instructions from the depositors in respect of cheques issued by them. However, service charges specified from time to time, if any, will be recovered from the depositor.
Dormant/ Inoperative Accounts
Accounts which are not operated for a period of two years will be transferred to a separate dormant / inoperative account status in the interest of the depositor as well of 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 subject to fulfilling KYC norms afresh establishing his address & identity and reasons for non operation of the account.
Safe Deposit Locker
Safe Deposit Locker facility’ is one of the subsidiary services provided by the Banks for keeping the valuables in the Safe Deposit Lockers. This provides safety to the belongings of the customers of the Bank against theft / burglary. This service shall be provided by the Bank at its sole discretion based on potential and commercial considerations. Wherever the facility is offered, allotment of safe deposit shall be subject to availability and compliance of ‘KYC’ norms with other terms and conditions attached to the service.
The relationship between the Bank and Locker Hirer is in the nature of ‘bailor & bailee and not ‘landlord’ & ‘tenant’. Bank shall exercise due care and necessary precautions for the safety of lockers provided to the customers like ordinary prudence will do in his case. However, Bank shall not be liable for any damage or loss to lockers or its contents due to any reasons(s) whatsoever. 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 if the locker is operated jointly. 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, the bank shall release the contents of the locker to the survivor(s) / nominee / legal heir(s) of specifically permitted to the Bank by the hirer(s) at the time of allotment of such locker.
In case bank receives any Garnishee Order from any competent Court in respect of account(s) of the customer, Bank is duty bound to act as per court order.
Redressal of complaints and grievances
Depositors having any complaint / grievance with regard to services rendered by the Bank have 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 shall be displayed in the branch premises. The redressal of complaints shall be done as per Grievance Redressal Policy of the Bank.
The Savings Bank / Current account shall be opened with initial deposit of cash unless it is exempted by the bank under special schemes. No Savings Bank / Current Account or Fixed Deposit Account will be opened with proceeds of the Cheque / Draft / Pay Order sent in collection in anticipation of receipt of the proceeds of the same.
Account of Pensioners
The opening and conduct of Account of Pensioner (including nomination etc) shall be dealt with in accordance with concerned Central / State Govt. rules / regulations.
Duplicate Fixed Deposit Receipts:
- Issuance of Duplicate Fixed Deposit Receipts:
If the original FDR is misplaced / lost, the duplicate thereof shall be issued with an express endorsement on the same that it has been issued in lieu of Original FDR (specify the number / account) after the same was reported lost / misplaced. Corresponding entry shall be made in the ledger of the account concerned including the electronic ledger.
At the time of the issuance of duplicate FDR, the deposit holders shall be required to execute indemnity Bond(s), which be appropriately stamped under the relevant State Laws. Stamp Duty shall be borne by the depositor concerned.
The Bank shall issue necessary Circular to all the branches to mark caution against the lost FDR.
Where the original Fixed deposit Receipt, which has been reported lost / misplaced, is held by more than one person jointly, the request for issuance of duplicate FDR shall be made jointly by them, the indemnity bonds shall be executed by each of such joint holders and the proceeds of the FDR, in case of pre-mature encashment, shall be credited to a joint account held by such holders either maintained with Punjab & Sind Bank or any other bank.
Besides an indemnity bond, an undertaking from the beneficiary shall be taken. In the undertaking, the beneficiary shall specifically and in certain terms declare the following:
- Date of loss/misplacement of Original FDR;
- Circumstances, in which such loss/misplacement took place;
- All efforts, as are expected from a reasonable and prudent person, to locate the original FDR have been exhausted;
- Matter has been reported to the bank at the earliest possible instance;
- The original FDR was misplaced from the possession/control of the beneficiary or that of some third party;
- The original FDR has not been pledged or delivered or handed over to any third party as a primary/collateral security or for any other purpose;
- In case the original FDR is located after the loss has been reported to the bank, the same shall be immediately handed over to the bank;
- This undertaking is in addition to and not in derogation of the indemnity bond executed by the beneficiary;
- The beneficiary understands that the undertaking constitutes a crucial document for the purpose of the bank’s decision to issue a duplicate FDR and make payment there under.
- The undertaking should be appropriately stamped under the relevant and applicable state laws. Charges whereof shall be borne by the depositor(s). Charges thereof shall be borne by the depositor(s).
Premature Payment of Duplicate FDR:
If the holder of the duplicate FDR insists for premature encashment, the proceeds shall be credited in the account maintained either with Punjab & Sind Bank or any other Bank.
In case, the duplicate FDR has been paid in terms of the bank’s policy and appropriate accounting treatment to the same has been given, and subsequently the original FDR is received, then the same shall be immediately cancelled by endorsing the details of the duplicate FDR issued in lieu thereof and payment already made there under by the bank to the beneficiary. The factum of receipt of original FDR shall be entered into the account books / ledger containing the details of the duplicate FDR so that the accounts remain comprehensive and ascertainable without referring to different sets of record. In case the Banks FDR has been pledged in favour of third party (Govt. Deptt.), in that case NOC from that third party / Govt. Deptt, shall be taken while allowing Premature payment of duplicate FDR.
Unclaimed CASA / Term Deposits:
The saving & current accounts which remain in inoperative status for 8 years (i.e., 10 years from the date of last operation) and in Term deposits in ODFD accounts for 10 years period, will be marked as “Unclaimed Deposit”. Such accounts will be transferred & maintained under a separate head i.e. “Unclaimed Deposit. The list of unclaimed deposits / inoperative accounts which are inactive / inoperative for ten years or more has been displayed on Bank's website. The list so displayed contains only names of account holders(s) and his/her address in respect of unclaimed deposits / inoperative accounts which are inactive / inoperative for ten years or more. In case the account details provided by the customer match in the list available then they will contact their branch and submit the claim form along with the required documents for the activation / closure of such account. The information on the process of claiming the unclaimed deposit / activating the inoperative account and the necessary documents for claiming the same is also furnished on the website.
NOTE: Bank Reserves the Right to change/alter/add/delete any clause or entire Policy at any time. It is expected that the policy will impart greater transparency in dealing with the individual customers and create awareness among customers of their rights. This policy shall be valid till the time of its next review. The policy will be displayed on Bank’s web site.