Participation In The Scheme
The account can be opened by all Govt. Institutions, Pvt. Institutions, PSUs, Corporate Bodies etc. The account shall be opened in the Name of the institution A/C Name of the employee. The Institution shall open the accounts with minimum 10 Employee or 75% of the eligible employee whichever is lower.
The amount of installments shall be minimum Rs. 10/- according to PF deductions of the employees and may be accepted later on in multiples of Rs. 1/- thereof.
Period Of Deposit
The account shall be opened for a minimum period from 6 Months to 120 month. If the employer requires deposit period for a longer duration i.e. more than 120 months at present, the previous account will be closed after the full tenure i.e. 120 months and new account will be opened for maximum period allowed as per RBI guidelines and at rate of interest prevailing at that time.
No penalty on missed installments.
Payment of Interest
The interest shall be at the CARD rate applicable to term deposits below Rs. 1 Crore (Link). Interest shall be applied at daily products basis. Interest shall be credited to the account on half-yearly basis in the month of March/September.
No premature withdrawal allowed without the prior sanction or permission of the institution.
Loans and Advances may be granted and shall be governed by L&A Circulars issued by IRMD (Credit Policy Section) HO on the subject from time to time with the prior sanction or permission of the institution.
Nomination facility is available.
TDS is applicable as per rules. The Bank will issue TDS
Certificate for the tax deducted.