Upon satisfaction of KYC, incumbents can open a savings bank account. These accounts should invariably used for encouraging small savings. Interest in the accounts is calculated of end of day business.
Current Accounts are basically meant for businessmen and are never used for the purpose of investment or savings. These deposits are the most liquid deposits and there are no limits for number of transactions or the amount of transactions in a day. Most of the current accounts are opened in the names of firm / company accounts. Cheque book facility is provided and the account holder can deposit all types of the cheques and drafts in their name or endorsed in their favour by third parties. No interest is paid by bank on these accounts. Moreover, Bank charges certain service charges, on these accounts.
Recurring Deposit is a special type of deposit account which enables a depositor particularly to save by paying into the account an agreed fixed sum of money monthly over a stipulated period. The deposits in this type of account earn compound interest on quarterly basis. Longer the period for which monthly deposits are agreed to be made higher is the return subject to rules.
KYC ( Know Your Customer) Norms for opening account are applicable for these accounts also hence proof of residence and proof of identification will be required along with recent photograph of the depositor/s.
nstallments of any calendar month should be paid on or before last working day of that calendar month and if it is not so paid penalty will be charged as per the prevaliling rates :
Where equal number of advance installments in the account are deposited in advance, penalty payable in respect of delayed installments may be waived by the Bank.
However,the maturity proceeds of the deposit shall be paid on the date of Maturity, or on completion of 1 month from the date of last installment paid, whichever is later.
TDS is applicable as per IncomeTax rules
Eligibility: Only individuals are eligible to open accounts under the scheme. Thus, the Recurring Deposit Accounts can be opened in the names of:
Nomination facility is available to these deposit accounts
Initial Deposits:Minimum Rs. 100/- and multiples of Rs. 10/- and there is no maximum limit .
Loan/Overdraft up to 85% available against the balance in Recurring Deposit account.
Range of term of the deposit:1 year-10 years
Premature closure of Deposit allowed at 1% below rate applicable for the period the deposit has remained.
Moneys invested in Kamadenu deposit provide the accrued interest at the end of term of the deposit only, which will be calculated on quarterly compounding basis. The maturity proceeds will be paid by crediting depositor’s individual savings/current accounts or by way of Banker's cheque/pay order.
KYC ( Know Your Customer) for opening account is applicable for these accounts also hence proof of residence and proof of identification will be required along with recent photograph of the depositor/s. Bank has introduced Auto renewal system in case of matured term deposits matured on or after15/8/2014.However, in case of term deposits matured prior to the above period and opted for further renewal, Bank has adopted its' own policy as "to allow the interest rate prevailing on the date of transaction as applicable for the minimum period between the lapsed and further renewal period, where the lapsed period= date of transaction-date of maturity.
Nomination facility is available to these deposits.
Loan/Overdraft facility up to 85% on the face value of the deposit or amount equivalent to 75% of principal value+ accrued Interest calculated up to the last quarter, whichever is higher, will be allowed
These deposits can be opened in the name of individuals or institutions operated by singly or jointly when there are more than 1 depositor.
Submission of pan no. is must for any remittance equal to or more than Rs.50000/-
Renewal policy of the term deposit:
penalties
Premature closure of Deposit allowed at 1% below the rate applicable for the period the deposit has remained with the bank
No interest shall be paid on prematurity of term deposit, if the period between the dates of deposit to closure of deposit is less than 7 days (i.e. less than the minimum required days for a term deposit to reckon interest)
The scheme is designed to meet the needs of people who want to deposit for a short period ranging from 7 days to below one year. The breakup of the period of deposit and rate of interest is as mentioned in the column interest rates. The interest along with the principal is paid at the end of the period for which the deposit is made.
The deposits can be opened in the name of individuals or institutions operated by singly or jointly where there is more than 1 depositor.
KYC ( Know Your Customer) Norms for opening account are applicable for these accounts also hence proof of residence and proof of identification will be required along with recent photograph of the depositor/s and submission of pan no.is must for any remittence equal to and above Rs. 50000/-
Renewal policy of the term deposit:
Bank has introduced Auto renewal system in case of matured term deposits matured on or after15/8/2014.However, in case of term deposits matured prior to the above period and opted for further renewal, Bank has adopted its' own policy as "to allow the interest rate prevailing on the date of transaction as applicable for the minimum period between the lapsed and further renewal period, where the lapsed period= date of transaction-date of maturity.
Premature closure of Deposit allowed at 1%below the rate applicable for the period the deposit remained with the bank