Deposit Schemes

  1. Schemes
  2. Deposit Schemes

Recurring Plus Deposit Scheme

1. Eligibility:

The account can be opened by:
a. An individual in his / her own name. b. More than one person in their joint names c. A minor through natural guardian i.e., father or mother or wherever applicable through guardian appointed by court.


2. Period of Deposit:

Deposits under the scheme shall be accepted for periods of 1 year to 5 years.


3. Amount of Monthly Deposit:

The depositor shall be at liberty to deposit variable monthly installments in multiples of Rs 100/- and also any number of installments during a month. The minimum amount of each deposit shall be Rs 100. Maximum monthly deposit shall be subject to 10 times basic installment* or Rs 50,000/-, whichever is lower. The ceiling shall apply to new as well as existing cases except where the basic installment is more than Rs 50,000/-. In these cases, the maximum monthly deposit shall be limited to the basic installment amount. In case the account holder deposits amount in excess of the permissible aggregate monthly deposit, the excess amount shall be adjusted as installment for the next month. No interest shall be paid on such excess amount during the month of deposit.


4. Rate of Interest:

Fixed.


5. Interest Calculation:

Interest at the prescribed rate shall be applied quarterly to the account based on daily balance method.


6. Payment before maturity:

Allowed with penalty of:
Before completion of 6 months: 1% less than the rate of interest applicable for the period the deposit remains with the bank.
After completion of 6 months: 0.50% less than the rate of interest applicable to the period the deposit remains with the bank.
However, no interest shall be paid if the deposit is withdrawn before the expiry of minimum deposit period, in force from time to time.
Amount Payable:The maturity value of the deposit cannot be worked out, as the depositor is free to deposit variable installments instead of fixed installments.


7. Loan Against Deposits:

Recurring plus credit facility in the nature of revolving SOD facility, indicated separately in the General Ledger on the Assets Side, is available against the security of RD Plus deposit. The main features of the facility are as under: The facility shall be allowed after a minimum of 6 months from the date of opening of the RD Plus account and subject to the condition that the minimum outstanding balance in the RD Plus account (Principal + Interest) is not less than Rs 5,000. The depositor shall be required to apply for the facility separately and shall also have to provide the requisite documents.

The Drawable limit shall be up to 90% of the balance in the account in case the tenure of the RD Plus deposit is upto 5 Yrs. For RD Plus accounts having tenures in excess of 5 Yrs(In case of existing RD Accounts with tenures of more than 5 years), the Drawable limit shall be 85% of the balance in the account. The limit can be enhanced quarterly on the basis of total balance in the RD Plus account. However, borrower shall be required to apply for enhancement and shall also be required to execute fresh set of documents every time the limit is enhanced. The withdrawals in the Recurring Plus Credit Facility A/c shall be permitted through cheque facility.

Interest rate of 2% above the deposit rate shall be charged on this facility.
The depositor shall be entitled to raise the Recurring plus Credit Facility at that branch only where Recurring Plus Deposit is maintained.
The facility shall not be allowed in case of RD Plus accounts opened in the name of minors. However, in such cases, the earlier feature of allowing term loan of up to 90% of Principal & Interest accrued shall continue. The RD plus Credit Facility must be adjusted by the depositor before the maturity of the RD Plus account. In case of non-adjustment, the bank shall adjust the facility from the maturity amount on maturity of the RD Plus deposit and residual, amount, if any,' shall be credited to the operative account of the customer or paid in the form of Pay Order to the customer if he/she doesn't have an operative account with the branch.
At the time of application for availing the credit facility, an account holder shall be required to execute the following documents:
a) DP Note.
b) Agreement for overdraft (To be Annexed).
c) Letter of Continuity.


8. Other Terms & Conditions:

The other terms and conditions governing the scheme will be same as applicable to other term deposit Schemes of the Bank.
(*Basic Installment: Basic Installment means the minimum deposit amount of Rs 100 or its multiples thereof, that the depositor undertakes to deposit every month.)