Recurring Deposit
- Deposit by way of fixed monthly instalment is made in the account during the fixed period.
- Interest is compounded on quarterly basis and payment thereof is made on date of maturity.
- Nomination facility available.
- Premature payment available (certain terms & Condition apply)
- Loan facility against the Deposit available.
- KYC not required, if already having Saving Account with the Bank.
Rules & Regulations for Recurring Deposit Scheme
- Depositor has to full fill KYC norms as per RBI directive.
- Guardian can open Minor’s Recurring A/c. When minor turns major, thereafter providing valid age proof, he/she can withdraw the amount with his/her own signature.
- Every Depositor will have to deposit their instalments latest by 10th of every month.
- If Depositor fails to deposit more than 2 instalments and if he/she does not deposit the due amount within 10 days after notice, then Bank can close such account and pay the amount with the Bank with simple Saving Bank interest.
- If the instalment is not paid within the due date even considering the grace period if any, then the interest for the instalment will not be paid and maturity amount will be reduced proportionately.
- The maturity amount is payable after maturity date and payment of all pending instalment.
- If customer wants to close account of 12 months period before its maturity date then the interest will be applicable as per Savings Interest Rate.
- If customers want to close the A/C before the contract period but after 12 months then final amount will be paid after deducting 1% penalty. But if it is closed before 12 months ten simple Saving Bank interest will be paid.
- If Customer deposits more instalments than required for prescribed period, then Interest will not be paid on extra instalment deposited.
- Customers has to produce Passbook at the time of depositing instalment and obtaining payment.
- If customer having Savings or Current a/c in the Bank then by the written application , Bank will transfer Recurring Deposit instalments from that account as standing instruction.
- The Bank having all rights of appropriation, set off, lien and change the rules and regulations for the scheme.
- Maturity amount is subject to regular payment of instalment amount and TDS deductions if applicable as per Income tax rules.
- Accrue Interest for the financial year will be calculated in beginning of year or when new account is opened on a quarterly compounded basis and will be considered for TDS liability and TDS will be deducted as per Income Tax rules.
- Bank has right to change the terms and conditions as and when required.