Recurring Deposit Account

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• OPENING OF ACCOUNT:
  

  Recurring Deposit Account may be opened in the name(s) of (a) Person or b) Two person jointly, repayable jointly or to survivor or former or survivor or latter or survivor or c) Two or more than two persons jointly and repayable to all of them or to anyone or more of the survivor of them or to the last survivor of them. d) i) Minor below the age of ten years to be operated upon his/her guardian. ii) A minor alone if he has completed the age of ten years in which case the monthly installment should be so adjusted that at the end of the stipulated period the total amount repayable in such account is below Rs. 50,000/- including interest.

• AMOUNT AND PERIOD OF DEPOSIT
  
  
  a) A recurring Deposit will be accepted with minimum monthly installment of Rs. 100/- and in multiples of Rs. 10/- each.
  
  
  b) Deposit will be accepted for 12 - 120 equal monthly installments.
  
  
  c) The depositors at the time of opening of account shall indicate the number and amount of monthly installment which will not be allowed to be altered / varied after the account is opened.
  
  
  REMITTANCE OF INSTALLMENTS
  
  
  d) The monthly installment should be deposited on or before the last working day of the particular calendar month to which it relates, installment paid during the course of the month in which it is due shall be deemed as payment made in time.
  
  
  e) Installment can be paid in cash, by cheque or by giving standing instructions to the bank to transfer the monthly installments from the depositor's Saving Bank or Current Account held with Bank.
  
  
  f) Cheque unless self-drawn or drawn in favour of the depositors and payable locally, will not ordinarily be accepted in payment of installment. In case of cheque, the credit to the account would be given only after realization. If realization of such cheque amount is beyond the due date, it would be treated as default.
  
  
• PENALTY (penal Charges) AND WAIVES OF PENALTY:
  
  
  a) If the installments are not paid within the respective calendar months in which they are due, penal charges are to be recovered for the delay. The penalty is to be charged as applicable for every Rs. 100/- per month for deposits maturing within 5 years andas applicable for every Rs. 100/- per month for deposits maturing beyond 5years. For Calculation of penal interest, a fraction of a month would be treated as a full month.
  
  
  b) As far as possible, penalty should be paid while paying the installment(s) or else, the penalty would be recovered from the maturity value of the deposit. The amount so recovered should be credited to "Miscellaneous Income".
  
  
  c) The penalty would be waived if the depositor in default in payment of installments of N (Number installments in default) months remits the installments in advance for another N months in addition to current month installment. In case the penalty is not remitted along with subsequent installments by the depositor, the amount due by way of penalty shall be recovered from the total amount repayable on the date of closure of the account.
• PASS BOOK:
  
  
  a) The Bank will supply a pass book to each depositor free of charges. The Pass Book must be presented to the Bank at the time of each deposit and surrendered at the time of payment on maturity / at the time of closure of the account.
  
  
  b) In case, the pass book is spoilt, mutilated or reported lost. a duplicate pass book may be issued on request through an application from the depositor and against payment as applicable..
• PAYMENT OF MATURITY:
  
  
  a) A Recurring Deposit matures for payment on the ostensible maturity date (i.e. the date on which the account completes the agreed period of deposit as calculated from the date of opening the account) or one month after the final stipulated installment has been paid which ever is later.
• PAYMENT OF MATURITY:
  
  
  a) The account will be closed on maturity.
  
  
  b) In case of default in payment of installment for consecutive 3 months. the Bank reserves the right to close the account.
  
  
  c) Premature closure of the account may be permitted at the request of the depositor(s). In case of such premature closure and closure on account of default in payment of installment as in case of (b) above, amount standing at the credit of the account shall be payable together with interest at the rate applicable to term deposits for the periods to which the deposit remained with the Bank less 1% penalty for premature withdrawal.
  
  
  d) If the account is closed within a period less than 12 months from the date of opening. a service charge as applicable in addition to penalty of 1% as stated under sub-clause(c) shall be levied. But no interest would be paid if the account is closed within 30 days from the date of opening.
  
  
• LOAN FACILITY:
  
  Demand Loans may be availed against R.D Account to the extent of 85% of the deposits, subject to a minimum loan amount of Rs.1000/- and in multiples of Rs. 100/- thereof and the rate of interest on such loan will be 1% over the rate applicable for concerned deposit allowed.
• OTHERS:
  
  The Bank reserves the right to add, alter or modify any of the rules at any time without prejudice and notice.