COMPREHENSIVE DEPOSIT POLICY

PREAMB
LE

One of the important functions of the Bank is to accept deposits from the public for the purpose of lending. In
fact, depositors are the major stakeholders of the Banking System. The depositors and their interests form the
key area of the regulatory framework for banking in India and this has been enshrined in the Banking
Regulation Act, 1949. The Reserve Bank of India is empowered to issue directives / advices on interest rates on
deposits and other aspects regarding conduct of deposit accounts from time to time. With liberalization in the
financial system and deregulation of interest rates, banks are now free to formulate deposit products within the
broad guidelines issued by RBI.

This policy document on deposits outlines the guiding principles in respect of formulation of various deposit
products offered by the Bank and terms and conditions governing the conduct of the account. The document
recognizes the rights of depositors and aims at dissemination of information with regard to various aspects of
acceptance of deposits from the members of the public, conduct and operations of various deposits accounts,
payment of interest on various deposit accounts, closure of deposit accounts, method of disposal of deposits of
deceased depositors, etc., for the benefit of customers. It is expected that this document will impart greater
transparency in dealing with the individual customers and create awareness among customers of their rights.
The ultimate objective is that the customer will get services they are rightfully entitled to receive without
demand.

This document is a broad framework under which the rights of common depositors are recognized. Detailed
operational instructions on various deposit schemes and related services will be issued from time to time. While
adopting this policy the Bank re-iterates its commitments to the individual customers as outlined in the Code of
Bank’s Commitment to Customers.

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. Definition of major deposits schemes are as under: -

i) "Demand Deposits" means a deposit received by the Bank which is withdrawable on demand.
ii) "Savings Account" 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.
iii) "Term Deposits" means a deposit received by the Bank for a fixed period and includes deposits such as
Recurring / Double Benefit Deposits / Short Deposits / Fixed Deposits
/Monthly Income Certificate /Quarterly Income Certificate etc.
iv) Notice Deposit means term deposit for specific period but withdrawable on giving at least
one complete banking days’ notice.
v) "Current Account" means a form of demand deposit wherefrom withdrawals are allowed any number of
times depending upon the balance in the account or up to a particular agreed amount and will also include
other deposit accounts which are neither Savings Deposit nor Term Deposit.

Comprehensive Deposit Policy 1

ACCOUNT OPENING AND OPERATION OF DEPOSIT
ACCOUNTS

A) The Bank before opening any deposit account will carry out due diligence as required under "Know Your
Customer" (KYC) guidelines issued by RBI and or such other norms or procedures adopted by the Bank.

B) The account opening forms and other material would be provided to the prospective depositor by the Bank.
The same will contain details of information to be furnished and documents to be produced for verification and
or for record, it is expected of the Bank official opening the account, to explain the procedural formalities and
provide necessary clarifications sought by the prospective depositor when he approaches for opening a deposit
account.

C) For deposit products like Savings Account and Current Account, the Bank will normally stipulate certain
minimum/ average balances to be maintained as part of terms and conditions governing operation of such
accounts. Failure to maintain stipulated minimum/ average balance in the account will attract levy of charges as
specified by the Bank from time to time. For Saving 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 additional cheque books, additional statement of accounts, duplicate pass book etc. All such details,
regarding terms and conditions for operation of the accounts and schedule of charges for various services
provided will be communicated to the prospective depositor while opening the account.

D) Savings Bank Accounts can be opened for eligible person / persons and certain organizations / agencies (as
advised by Reserve Bank of India (RBI) from time to time). These accounts are designed to help the individual
(personal customers) to inculcate the habit of saving money and to meet their future requirement of money.
The amounts can be deposited/withdrawn from these accounts by way of cheques/ATM/ Branches. It
helps customers to keep minimum cash at home besides earning interest.

Current Accounts can be opened by individuals / partnership firms / Private and Public Limited Companies /
HUFs / Specified Associates / Societies / Trusts, etc. as advised by RBI from time to time.

Term Deposits Accounts can be opened by individuals / partnership firms / Private and Public Limited
Companies / HUFs/ Specified Associates / Societies / Trusts, etc. Bank has tailored various deposit schemes to
suit the needs and expectations of investing people in every walk of life.

E) The due diligence process, while opening an account will involve satisfying about the identity of the person
and verification of address and obtaining declaration from customer regarding occupation and source of
income.

F) In addition to the due diligence requirements, under KYC norms the Bank is required by law to obtain
Permanent Account Number (PAN) or alternatively declaration in Form No. 60 as specified under the Income
Tax Act / Rules.

G) Savings accounts can be opened by an individual in his own name (status: known as account in single
name) or by more than one individual in their own names (status: known as Joint Account). It can also be
opened by a minor jointly with natural guardian or with mother

Comprehensive Deposit Policy 2

as the guardian (Status: known as Minor's Account). Minors above the age of 10 will also be allowed to open
and operate saving bank account independently.

H) 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 as either or survivor, anyone or survivor or 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 natural guardian only.

I) The joint account holders can give any of the following mandates for the disposal of balance in the above
accounts:

i). Either or Survivor: If the account is held by two individuals say, A & B, the final balance along with interest,
if applicable, will be paid to survivor on death of anyone of the account holders.

ii. 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, will be paid to the survivor on death of any two account holders.

In case of joint Fixed Deposits with a survivorship clause, the Bank shall be discharged by paying the
Fixed Deposit proceeds prematurely to survivor/s on request, in the event of death of one or more Joint
depositor.

J) At the request of the depositor, the Bank will register mandate / power of attorney given by him
authorizing another person to operate the account on his behalf.

K) 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 absence of any
written instructions about the disposal of the term deposit, the Bank reserves the right at its discretion to renew
the deposit along with accrued interest thereon at prevailing rates of interest for a similar tenor of the deposit
which has matured.

L) Passbook facility is available to all savings account holders free of cost. Statements will be provided to all
Current Account Holders periodically as per terms and conditions of opening of the account.

M) Nomination Facility: Bank offers nomination facility in deposit accounts, safe deposit lockers, articles in
safe custody etc. Nomination facility is available on all deposit accounts opened by the 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 the account holder/s any time. While making
nomination, cancellation or change thereof, it is required to be witnessed by a third party. Nomination can be
modified by the consent of account holder/s. Nomination can be made in favour of a minor also subject to
other major individual being named appointee(s) during the minority period.

The Bank recommends that all depositors avail nomination facility. The nominee, in the event of death of all
depositors, would receive the balance outstanding in the account as a trustee of legal heirs. The depositor will be
informed of the advantages of the nomination facility while opening a deposit account.

Comprehensive Deposit Policy 3

N) The Current and Saving accounts may be transferred to any other branch of the Bank at the request of the
depositor.

INTEREST
PAYMENTS

i) Interest shall be paid on saving account as per Reserve Bank of India directives issued from time to time.
ii) The authority to decide the rate of interest from time to time has been delegated to ALCO
by the board.
iii) Term deposit interest rates are decided by the Bank within the general guidelines issued by the Reserve
Bank of India from time to time which includes additional interest rates for senior citizens and staff. The
Bank will provide additional Interest rate to its senior citizen customers on resident deposits of less than 5
crores. Additional interest rate will be provided to its staff / retired staff on all resident deposits across all
amounts and tenors. Retired staff will be provided dual benefit of staff rate and senior citizen rate on
resident deposits of less than 5 crores.
iv) 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 formula and
conventions advised by Indian Banks' Association.
v) The rate of interest on deposits will 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 on Bank’s website.
vi) For INR deposits, the Bank computes interest based on the actual number of days in a year.
In case, the Deposit is spread over a leap and a non-leap year, the interest is calculated based on the
number of days i.e.,366 days in a leap year & 365 days in a non-leap year.
vii) 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. The Bank will 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 at the beginning of every financial
year and when a new deposit is booked

The Board of Directors vide their meeting held on April 23, 2013 have authorized ALCO as a decision making
authority to take all decisions pertaining to Deposits (Domestic) including rates to be offered, tenor, pre-mature
withdrawal penalty etc. The interest rates are framed basis the below guidelines:

i) The rates are uniform across all branches and for all customers.
ii) There is no discrimination of interest paid on the deposits, between one deposit and another of similar
amount, accepted on the same date, at any of its offices.
iii) Interest rate payable on deposits shall be strictly as per the schedule of interest rates
disclosed in advance except for bulk deposits. The threshold for Bulk Deposits is as defined by RBI in
their circular issued under reference number RBI/2018-19/128
DBR.DIR.BC.No.27/13.03.00/2018-19.The banks shall maintain the deposit interest rate card in their Core
banking system to ensure uniform rates are applied to all the deposits without

Comprehensive Deposit Policy 4

 any discrimination and modification is allowed only with the permission of authorized person.
iv) All transactions, involving payment of interest on deposits shall be rounded off to the nearest rupee for
rupee deposits and to two decimal places for FCNR (B) deposits.

MINORS'
ACCOUNTS

i) The 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. The account can also be opened jointly.
ii) On attaining majority, the erstwhile minor should 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 would be obtained and kept on record for all operational
purposes.

ACCOUNT OF ILLITERATE / BLIND

PERSON

The Bank may at its discretion open deposit accounts of illiterate person. The account of such person may be
opened provided he/she calls on the Bank personally along with a witness who is known to both the depositor
and the Bank. No cheque book facility is provided to illiterate customers. At the time of withdrawal/ repayment
of deposit amount and/or interest, the account holder should affix his / her thumb impression or mark in
the presence of the authorized bank officer who should verify the identity of the person. The Bank will
explain the need for proper care and safe keeping of the passbook etc. given to the account holder. In case of
blind persons who are literate, ATM /Debit card, cheque book, etc. facilities will be given. The Bank official
shall explain the terms and conditions governing the account.

ACCOUNT OF PERSONS WITH AUTISM, CEREBRAL PALSY, MENTAL RETARDATION &

MULTIPLE DISABILITIES

Savings bank and term deposits can also be opened in the name of persons with autism, cerebral palsy, mental
retardation and multiple disabilities by the legal guardian appointed by the District Court under Mental Health
Act, 1987 or by the Local Level Committees set up under the National Trust for welfare of persons with
autism, cerebral palsy, mental retardation and multiple disabilities under Disabilities Act, 1999.

ADDITION OR DELETION OF THE NAME/S OF JOINT ACCOUNT

HOLDERS

The bank may 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 first holder cannot be deleted from any account, except in case of Death of
Holder.

CUSTOMER
INFORMATION

Comprehensive Deposit Policy 5

The customer information collected from the customers shall not be used for cross selling of services or
products by the Bank, their subsidiaries and affiliates. If the Bank proposes to use such information, it should
be strictly with the consent of the accountholder.

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
expressed or implied consent from 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

DEPOSITS

The Bank on request from a depositor, will allow withdrawal of term deposit before completion of the period of
the deposit as per terms agreed upon at the time of placing the deposit.

The Interest rate applicable for premature closure will be lower of:

The rate for the original /contracted tenure for which the deposit has been booked OR The base rate
applicable for the tenure for which the deposit has been in force with the Bank.

For such premature withdrawals, including sweep-ins and partial withdrawals, the Bank may levy a penalty
decided by the ALCO on the applicable rate, however penalty is not applicable if the deposit is booked for
minimum tenor as prescribed by RBI from time to time.

Bank shall have the freedom to offer term deposits without premature withdrawal option. Provided that all
term deposits accepted from individuals (held singly or jointly) for amount of Rupees fifteen lakh and below
shall have premature-withdrawal-facility

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 applied. In the absence of any maturity instructions or
renewal instructions, all term deposits are automatically renewed for a period equal to that of the original
deposit at the rates prevailing at the time of renewal.

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. 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.

SETTLEMENT OF DUES IN DECEASED DEPOSIT ACCOUNT

i) 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 satisfies
about the identity of the nominee, etc.

Comprehensive Deposit Policy 6

ii) 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 / latter 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.
iv) 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. This is to ensure that the common
depositors are not put hardship on account of delays in completing legal formalities.
v) In case of death of the primary holder of the term deposit prior to the maturity date, premature
termination of the deposit would be allowed as per the terms of contract subject to necessary verifications
and submission of proof of death of the depositor. Such premature withdrawals will not attract any penal
charge.
vi) In case of splitting of the amount of term deposit at the request from the claimant/s of deceased
depositors or Joint account holders, no penalty for premature withdrawal of the term deposit
shall be levied if the period and aggregate amount of the deposit do not undergo any change

SETTLEMENT OF MISSING PERSONS

CLAIMS

As per Indian Evidence Act, 1872 (section 107 and 108) presumption of death can be raised
only after a lapse of seven years from the date of person reported as “missing”.

As such, nominee / legal heirs have to raise an express presumption of death of the customer, under section 107
/ 108 of the Indian Evidence Act before a competent court. If the court presumes that he / she is dead, then the
claim in respect of a missing person can be settled with consultation of Legal department of Bank.

INTEREST PAYABLE ON TERM DEPOSIT IN DECEASED

ACCOUNT

i) In the event of death of the depositor before the date of maturity of deposit and 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 Bank shall pay simple interest
at the applicable rate obtaining on the date of maturity, for the period for which the deposit remained
with the Bank beyond the date of maturity; as per the Bank's policy in this regard.
ii) However, in the case of death of the depositor after the date of maturity of the deposit,
the bank shall pay interest at savings deposit rate as (on the date of maturity) from the date of maturity
till the date of payment.

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 depositor.

Comprehensive Deposit Policy 7

DORMANT
ACCOUNTS

Savings/Current Account which are not operated for a continuous period of more than 2 years by customer.
(excludes system generated transactions like credit interest/debit interest) will be treated as a Dormant Account
in the interest of the depositor as well as the Bank. The depositor can request the bank to activate the account for
operating it.

SAFE DEPOSIT
LOCKERS

This facility is not offered through all bank branches and wherever the facility is offered, allotment of safe
deposit vault will be subject to availability and compliance with other terms and conditions attached to the
service. 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. 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, 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 AND

GRIEVANCES

Depositors having any complaint / grievance with regard to services rendered by the Bank has 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 will be displayed in the branch premises /
website. The branch officials shall provide all required information regarding procedure for lodging the
complaint. In case the depositor does not get response from the Bank within one month from date of complaint
or he is not satisfied with the response received from the Bank, he has a right to approach Banking
Ombudsman appointed by the Reserve Bank of India.

STANDING
INSTRUCTIONS

Standing instructions can be given to the Bank for transfer/remittance of funds from one account to other
account(s) maintained in the same branch, any other branch of the bank.

DIRECT
DEBIT

The Bank offers Electronic Clearing Service (ECS) / Automated Clearing House (ACH) facility for effecting
periodic payments by "direct debit" to the customer's account. This facility is mainly used for payment of
utility bills/EMI of Loans/Insurance Premium/Investment in Mutual Funds, etc. Details of ECS/ACH facility
are available at all the branches.

STOP PAYMENT
FACILITY

The Bank will accept stop payment instruction from the depositors in respect of cheques issued by them.
Charges, as specified, will be recovered.

Comprehensive Deposit Policy 8

SERVICE
CHARGES
All new accounts opened would contain a leaflet detailing various types of Services & Charges being levied by
the bank for any of the services availed. Updated service & fees leaflet is also made available to all customers at
the branch/website for reference at any point of time. Any change in service & fees will be communicated one
month in advance to all customers before effecting the change.

On Average Monthly Balance requirement, every customer is communicated up-front at the time of opening
account with the bank. If the customer fails to maintain required minimum balance in his/her account, bank
notifies the same to customer. The communication states that in the event of the minimum balance not being
restored in the account within next 30 days from the date of notice, penal charges will be levied. In case the
balance is restored within given notice period, no charges are levied; else bank debits the applicable charges
from the customer's account. AMB charges defined by the bank are directly proportionate to the extent of
shortfall in the account. Bank also ensures, that the account balance is not turned into negative due to levy of
AMB charges.

EXCHANGE OF SOILED / MUTILATED

NOTES

The bank accepts mutilated / soiled notes from customers / non-customers for exchange. Process of
acceptance of such notes has been defined as per RBI's note refund rules and circulated to all the branches
for adherence.

All branches of the Bank offer the facility of exchange of soiled notes, coins, exchange of mutilated and cut
notes. The process of exchange would be as per RBI's Note Refund Rules.

ATM CARD / DEBIT CARD HOT

LISTING

The bank will accept ATM card / Debit card hotlisting instructions from customers through NetBanking /
PhoneBanking channel - 24 hours a day and from branch channel during customer hours. PhoneBanking
numbers are made available to customers whenever a Card is issued and all branches contain a detailed leaflet
with the numbers.
PENSION
ACCOUNTS

The bank offers a special product for pensioners with certain benefits. Details about the product offering is
available with all the branches / website.

BASIC SAVINGS BANK DEPOSIT

ACCOUNT

The Bank offers a BSBDA Account with all the basic banking facilities with Zero Initial Pay-In and
Zero balance account. Details about the product offering are available with all the branches.

FOREIGN EXCHANGE
SERVICES

The Bank offers a wide range of Foreign Exchange Products and Services to all customers, through its select
branches. All Foreign Exchange transactions are conducted subject to Rules and Regulations under the Foreign
Exchange Management Act, 1999 (FEMA).

Comprehensive Deposit Policy 9

ACCOUNTS OF TRANSGENDER
PERSONS

In case of a person claiming to be transgender and needs to open account or to do any banking transaction, the
person will be recognized as “Third Gender “and the details shall be accepted in the account opening form or
other applicable forms. All transgender customers shall be treated equally to other male/female customers
without any discrimination.

NON- RESIDENT
DEPOSITS

A) INTEREST PAYMENTS AND RATES

i) Interest on NRE/NRO saving account shall be calculated on a daily basis. A uniform interest rate is
set by the Bank for the balances upto the amount prescribed in the Reserve Bank of India guidelines.
Differential interest rate may be provided for end of day balance higher than the prescribed amount.
Interest on savings deposits shall be credited at quarterly intervals. No interest is paid on balances held
in a current account.
ii) Interest rates on NRE/ NRO deposits shall not be higher than those offered by the bank on comparable
domestic rupee term deposits
iii) The minimum tenor of NRE /FCNR term deposits shall be one year and that of NRO term deposits
shall be seven days.
iv) Differential interest rate if any shall be offered only on bulk deposits
v) Term deposit interest rates are decided by the Bank within the general guidelines issued by the Reserve
Bank of India from time to time. The benefit of additional interest rate on deposits on account of
being bank’s staff or senior citizen shall not be applicable for NRI deposits.
vi) In terms of Reserve Bank of India directives, interest on INR deposit 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 formula and conventions advised by Indian Banks' Association.
vii) The rate of interest on deposits will 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 on Bank’s website. viii) For INR
deposits, the Bank computes interest based on the actual number of days in a year. In case, the Deposit is
spread over a leap and a non-leap year, the interest is calculated based on the number of days i.e.,366
days in a leap year & 365 days in a
non-leap year.
ix) For Foreign Currency deposits (FCNR & RFC) the Bank computes interest based on 360 days to a
year. The depositor has an option of receiving interest on maturity with compounding effect.
x) The Bank has statutory obligation to deduct tax at source on Interest paid / payable
on NRO Savings / Term deposits under the Income Tax Act. The Bank will issue a tax deduction
certificate (TDS Certificate) for the amount of tax deducted.
xi) No interest will be paid if the NRE / NRO / RFC / FCNR term deposit is liquidated prior to completion
of minimum tenor as prescribed by RBI from time to time.

Comprehensive Deposit Policy 10

 xii) Overdraft facility can be given against NRO Deposits in India. Overdraft facility can be given in India
or Outside India against the NRE / FCNR deposits

The Board of Directors vide their meeting held on April 23, 2013 have authorized ALCO as a decision
making authority to take all decisions pertaining to Deposits (Domestic) including rates to be offered,
tenor, pre-mature withdrawal penalty etc. The interest rates are framed basis the below guidelines:

i) The rates are uniform across all branches and for all customers.
ii) There is no discrimination of interest paid on the deposits, between one deposit and another of similar
amount, accepted on the same date, at any of its offices.
iii) Interest rate payable on deposits shall be strictly as per the schedule of interest rates disclosed in
advance except for bulk deposits. The threshold for Bulk Deposits is as defined by RBI in their
circular issued under reference number RBI/2018-19/128
DBR.DIR.BC.No.27/13.03.00/2018-19.The banks shall maintain the deposit interest rate
card in their Core banking system to ensure uniform rates are applied to all the deposits without any
discrimination and modification is allowed only with the permission of authorized person.
iv) The rates cannot be negotiated between the depositors and the bank. v) The interest
rates offered are reasonable, consistent and transparent.
vi) All transactions, involving payment of interest on deposits shall be rounded off to the nearest rupee
for rupee deposits and to two decimal places for FCNR (B) deposits.
vii) If a term deposit is maturing for payment on a non-business working day, Bank shall pay interest at the
originally contracted rate on the original principal deposit amount for the non-business working day,
intervening between the date of the maturity of the specified term of the deposit and the date of
payment of the proceeds of the
deposit on the succeeding working day.
viii) In case of reinvestment deposits and recurring deposits, Bank shall pay interest for the intervening
non-business working day on the maturity value.
ix) Deposits accounts transferred from one bank branch to another bank branch on account of takeover of
bank branches in rural and semi-urban centres will adhere to the following conditions:
a. deposit accounts will be deemed to be transferred to the new bank and will continue to be
governed by the terms of contract agreed to between the customer and the bank branch that
is being taken over.
b. the same rate of interest will be payable till maturity on such transferred deposits, as was payable
at the time of takeover of the branch.

B) Premature Liquidation of NRE / NRO / FCNR Term Deposits

The Bank on request from a depositor, will allow withdrawal of term deposit before completion of the
period of the deposit as per terms agreed upon at the time of placing the deposit. The component of
penalty is clearly brought to the notice of the depositors at the time of acceptance of the deposits and also
mentioned in the deposit advice.

The Interest rate applicable for premature closure will be lower of:
The rate for the original /contracted tenure for which the deposit has been booked
OR
The base rate applicable for the tenure for which the deposit has been in force with the Bank.

Comprehensive Deposit Policy 11

 For such premature withdrawals, including sweep-ins and partial withdrawals, the Bank shall levy a
penalty of 1% on NRO term deposit on the applicable rate.

No penalty shall be levied for premature withdrawal of NRE /FCNR term deposits. Since no penalty is
levied by Bank for premature withdrawal of NRE /FCNR deposits, no penalties with be levied in respect of
the following scenarios:
• Penalty for premature withdrawal of NRE deposit for conversion into FCNR (B) deposit
• Penalty for premature withdrawal of FCNR deposit for conversion into NRE deposit
• Penalty for premature withdrawal of FCNR deposit when the depositors return to India for permanent
settlement
• Penalty for premature withdrawal of NRE / FCNR deposit for conversion into Resident
Foreign Currency (RFC) Account
• Penalty for premature withdrawal of FCNR deposit for splitting of the amount at the request from
the claimant/s
• Penalty for premature withdrawal of NRE / FCNR deposit where depositor desires transfer of
business from one bank branch to another bank branch on account of takeover of bank branches
• Penalty to recover the swap cost in case of premature withdrawal of FCNR(B) deposits

C) RESIDENT FOREIGN CURRENCY (RFC) DEPOSITS

NRI customers who have returned to India for good can book Resident Foreign Currency
Deposits for a minimum tenure of 15 days and maximum tenure of 3 years.

The interest rate applicable for premature closure of RFC deposits will be lower of :
• The base rate for the original/contracted tenure for which the deposit has been booked OR
• The base rate applicable for the tenure for which the deposit has been in force with
the Bank.

On conversion of NRE / FCNR deposit to RFC deposit interest will be paid as under:

• If the NRE / FCNR deposit has not run for a minimum period of one year, interest shall be paid at a
rate not exceeding the rate payable on savings deposits held in RFC accounts.
• In all other cases, interest shall be paid at the contracted rate.

The penalty on premature closure of RFC Deposits is fixed at the rate of 1% provided RFC FD interest is
equivalent to 1% or more. On change of Resident Status from Resident to NRI the RFC deposit can be
converted to FCNR/NRE deposit. Overdraft facility cannot be given against RFC deposits.

D) PROHIBITION ON MARKING LIEN

Scheduled Commercial Banks shall not mark any type of lien, direct or indirect, against
NRE saving deposits.

E) INTEREST PAYABLE ON NRE / NRO TERM DEPOSIT IN DECEASED ACCOUNT

In case the claimants of an NRE term deposit account of a deceased depositor are residents, the deposit on
maturity shall be treated as a domestic rupee term deposit and

Comprehensive Deposit Policy 12

 interest shall be paid for the subsequent period at a rate applicable to a domestic term deposit of similar
maturity.

F) Maturity period for term deposits under the FCNR (B) scheme

1. The maturity period for term deposits under the FCNR (B) scheme shall be as under:
a) One year and above but less than two years
b) Two years and above but less than three years c) Three
years and above but less than four years
d) Four years and above but less than five years
e) Five years only

2. Bank shall not accept or renew FCNR (B) deposits on maturity for over five years and no recurring
deposits shall be accepted under the FCNR (B) Scheme. Bank may decide the currency-wise
minimum quantum on which differential rates of interest may be offered.
3. The interest rates on all deposits, including where differential rates of interest are offered, shall be
subject to the overall ceiling prescribed by Reserve Bank of India from time to time
4. Bank does not offer floating rates on FCNR deposits
5. The Overnight Alternative Reference Rate for the respective currency /SWAP rates as on the last
working day of the preceding month shall form the base for fixing ceiling rates for the interest rates
offered effective in the following month.
6. The interest rates ceiling on FCNR (B) deposits shall be as under:
a) For period of deposit 1 year to less than 3 years - Overnight Alternative Reference
Rate for the respective currency/ Swap plus 250 basis points
b) For period of deposit 3 years and above including 5 years - Overnight Alternative
Reference Rate for the respective currency/ Swap plus 350 basis points
7. The Overnight Alternative Reference Rate for the respective currency / Swap rates quoted/displayed
by Foreign Exchange Dealers Association of India (FEDAI) shall be used as the reference for
arriving at the interest rates on FCNR(B) deposits.

G) Calculation of interest on renewal of FCNR (B) deposits

Interest calculation on renewal of FCNR(B) deposits shall be as under:

1. If the period from the date of maturity till the date of renewal (both days inclusive)
does not exceed 14 days, the rate of interest payable on the amount of the deposit so renewed shall
be the appropriate rate of interest for the period of renewal as prevailing on the date of maturity or on
the date when the depositor seeks renewal, whichever is lower.
2. Interest calculation on renewal of FCNR(B) deposits shall be as under:
3. If the period from the date of maturity till the date of renewal (both days inclusive)
does not exceed 14 days, the rate of interest payable on the amount of the deposit so renewed shall
be the appropriate rate of interest for the period of renewal as prevailing on the date of maturity or on
the date when the depositor seeks renewal, whichever is lower.

H) INTEREST PAYABLE ON FCNR DEPOSIT IN DECEASED

ACCOUNT

Bank shall pay interest on the FCNR deposits standing in the name(s) of a deceased
FCNR(B) as under :-

1. If paid on the maturity of the deposit, interest shall be paid at the contracted rate;

Comprehensive Deposit Policy 13

 2. If the deposit is claimed before the maturity date, interest shall be paid not at the contracted rate but
at the rate applicable to the period for which the deposit remained with the bank. No Penalty will be
levied for premature liquidation of FCNR.
3. In case the depositor dies before the date of maturity of the deposit but the amount of the deposit is
claimed after the date of maturity, interest shall be paid at the contracted rate till the date of maturity
and simple interest at the applicable rate operative on the date of maturity for the period for which the
deposit remained with the bank beyond the date of maturity.
4. In case of death of the depositor after the date of maturity of the deposit, the interest
rate operative on the date of maturity in respect of savings deposits held under Resident Foreign
Currency (RFC) Account Scheme shall be paid from the date of maturity till the date of payment.
5. In case the claimants are residents, the maturity proceeds shall be converted into Indian Rupees on
the date of maturity and interest shall be paid for the subsequent period at the rate applicable to a
domestic term deposit of similar maturity.

I) Payment of interest on FCNR (B) deposits of NRIs on return to India

On receipt of the request from the depositor, Bank will allow FCNR (B) deposits of persons
of Indian nationality/origin who return to India for permanent settlement to continue till maturity at the
contracted rate of interest subject to the conditions that:

1. The rate of interest as applicable to FCNR(B) deposits shall continue.

2. Such deposits shall be treated as resident deposits from the date of return of the account holder
to India.
3. The FCNR (B) deposits on maturity shall be converted into Resident Rupee Deposit
Account or RFC Account (if eligible) at the option of the account holder.
4. The rate of interest on the new deposit (Rupee account or RFC Account) shall be the relevant rate
applicable for such deposit account.

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Comprehensive Deposit Policy 14