Brief features of the product:

Eligibility Individuals, including illiterate, blind persons and joint account.
The joint holder deposit receipt may be issued jointly to two adults or jointly to an adult and a minor, and payable to either of the holders or to the survivor. However, in the case of joint holder deposit, the deduction from income under section 80C of the Act shall be available only to the first holder of the deposit.
Hindu Undivided family (HUF)
Deposit Amount Minimum deposit of Rs. 100/- or in multiples thereof, subject to maximum deposit of Rs. 1.50 Lakh per financial year only.
A declaration from the depositor(s), as per ANNEXURE-B, to be obtained at the time of opening of Account, under the Scheme and annexed with AOF of the depositor only.
Period of Deposit For any period from minimum 5 years to maximum 10 years, including incomplete quarter of 82 months, 95 months and 16 days so on.
Lock in Period: 5 year
No term deposit receipt shall be encashed before the expiry of five years from the date of its receipt except in case of death of depositor.
Interest Options While opening the Term Deposit Accounts, depositors (s) shall give one of the following options:
Income Option (Outflow of Interest):
The interest may be paid on monthly/quarterly/half yearly/yearly basis. The payment of interest on quarterly basis shall be made on simple rate of interest. The monthly interest will be paid at discounted value, whereas, the same shall be quarterly compounded in case of half-yearly and yearly payment of interest.
Maturity Option (Re-Invested Interest):
The interest shall be compounded on quarterly basis and will be payable on maturity of deposit only. The incomplete quarter of such deposit shall be reckoned at the end, for the purpose of calculation of interest.
Rate of Interest Card Rate as per guidelines issued by IRMD, (ALM) HO: from time to time.
In case of Senior citizen, 0.50% additional interest (Subject to change as per bank guidelines from time to time)and in case of staff member, 1% additional interest shall be paid over and above the Interest applicable to the scheme, inclusive of additional interest payable to Sr. Citizen under the Scheme.
Explanation: In case of staff members as well as retired staff members who are also senior citizen, maximum rate of interest to be allowed shall be 1% over and above the interest applicable under the scheme.
The payment of interest shall be made as per the option declared by the depositors at the time of making the deposit.
Issue of term deposit receipt The term deposit receipt issued under the scheme shall bear the name, address, Permanent Account Number (PAN) and signature of the depositor.
A rubber stamp bearing - Name of the Scheme & Permanent Account Number (PAN) of the depositor be affixed on the existing AOF’s.
The term deposit receipt shall be issued to the depositor only, when he/she has himself/herself requested the branch on the prescribed form of the Bank and signed on the FDR/ FDRs in the presence of Bank’s official.
Loan/Advance The term deposit receipt issued under the scheme shall NOT be lien/pledged to secure a loan or as security to any other loan, before the expiry of the Lock in Period of 5 years.
However, after the expiry of lock in period, the loan can be availed by the depositor(s), under the scheme. Other terms & condition as per L&A Circulars issued on the subject from time to time.
Replacement of lost or destroyed Term Deposit Receipts If a term deposit receipt is lost, stolen, destroyed, mutilated or defaced, the depositor/depositors entitled thereto, shall apply to the issuing branch with full particulars, such as account number, amount and date of the receipt, and the circumstance attending such loss, theft, destruction, mutilation or defacement, for the issue of a duplicate receipt.
Incumbent In-charge shall allow for issuance of duplicate receipt to the applicant furnishing an indemnity bond in the Bank’s prescribed form with one or more sureties, acceptable to the Bank or with a bank guarantee as per the case, after verification of complete incident of such loss, theft, destruction, mutilation or defacement of the receipt.
If the face value or the aggregate face value of the receipt or receipts mentioned above is five hundred rupees or less, a duplicate receipt or receipts can be issued to the depositor, furnishing an indemnity bond without any surety or guarantee.
A duplicate receipt can also be issued without any such indemnity bond, surety or guarantee, if the receipt mutilated or defaced is surrendered and the receipt is capable of being identified as the one originally issued by the branch.
A duplicate receipt issued under paragraph (2) shall be treated as equivalent to the original receipt for all the purposes of this scheme except that it shall not be en-cashable at a branch other than the branch at which such receipt is issued, without proper verification.
Premature withdrawal / Part withdrawal Premature cancellation/ part withdrawal before the lock of period 5 years is not allowed.
However, in case of death of the depositor before the maturity of term deposit, levy of penalty would be exempted and nominee/legal heir will be allowed premature payment even before the lock-in-period as per rules.
Payment to legal heirs If a holder of term deposit dies and there is no nomination in force at the time of his death, Incumbents of the branch from where the term deposit was issued, shall pay the sum due to the deceased, to his legal heirs as per rules.
Income tax deductable at source Interest on these term deposits shall be liable to tax under the Income tax Act, on the basis of annual accrual or receipt, depending upon the method of accounting followed by the depositors.
The tax on such interest shall be deducted in accordance with the provisions of Income Tax Act. All these guidelines shall be subject to any modification as circularized by HO from time to time.

* Other terms and conditions as per general guidelines

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