Flexible Recurring Deposit Scheme

• Minimum amount of core instalment required to open an account is Rs. 100 thereafter in multiple of Rs. 100 above core instalment (flexibility of changes in instalment amount)
• Monthly deposit amount can be increased only up to three times of the core instalment subject to maximum of Rs. 10,000 per month.
• Loan/overdraft facility is permitted up to 95% of outstanding balance at interest rate as per bank's guidelines issued from time to time
• Rate of Interest to Senior Citizen: An additional interest @ 0.50 % is payable for deposits below Rs. 1 crore. only
• Nomination facility will be available
• Minor Accounts can be opened for individuals above 10 years subject to maximum cap of Rs. 1,00,000

• Payment of Interest
• Interest will be paid and credited half yearly (Sept & March)
• Interest will be on daily balance.(Half yearly compounding of interest)
• Accounts can also be opened in the name of a minor of minor with their father/mother, as guardian as per bank extant guidelines

• An individual in his/her own name.
• More than one individual in joint name.
• Minor of age 10 and above on terms laid down by the bank. Accounts can also be opened in the name of a minor of minor with their father/mother, as guardian as per bank extant guidelines.
• Clubs, associations, educational institutions, partnerships and joint stock companies, provided they are registered and the bank is satisfied that the account is opened for genuine savings purposes.
• The product is not available for NRE deposits.

• Interest will be paid and credited half yearly (September and March).
• Senior citizen shall get benefit of additional interest as per guidelines effective from time to time (as applicable on recurring deposit account).
• Staff members (including ex-staff) shall get the benefit of additional interest as per guidelines effective from time to time (as applicable on recurring deposit account). Retired staff members who are senior citizen shall get both benefit of staff rate as well as senior citizen interest rate benefit.

Eligibility

All individuals and non-individuals

Amount of Deposit

• Minimum: Minimum amount of core instalment required to open an account is Rs. 100 thereafter in multiple of Rs. 100 above core instalment.(flexibility of changes in instalment amount)

• Maximum: Monthly deposit amount can be increased only up to three times of the core instalment subject to maximum of Rs. 10,000 per month

Tenure of Deposit

Minimum : 12 months
Maximum : 120 months

Instalment Frequency

Monthly

Rate of interest

As per the maturity period of the deposit

Payment of Interest

• Interest will be paid and credited half yearly (Sept & March)
• Interest will be on daily balance.(Half yearly compounding of interest)

Premature Closure

Interest should be paid after deducting a penalty of 1% from such applicable rate or the contracted rate whichever is lower in the cases which are subject to charging penalty.

Availability of Loan/Overdraft

Loan/overdraft facility is permitted up to 95% of outstanding balance at interest rate as per bank's guidelines issued from time to time.

Maturity of Deposit

One month after payment of the last instalment or due date, whichever is later.

Penalty on delayed Payment of Instalments

No penalty

Interest Payment:

• In terms of Reserve Bank of India directives, interest shall be calculated at quarterly compounding 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 on compounding basis and paid monthly at discounted value. The interest on Term deposits is calculated by the Bank in accordance with the formulae and conventions advised by Indian Banks' Association.

Accordingly Bank has adopted following methodology.

“In all cases of Domestic Term Deposits ( period of deposit more than a year) where the terminal quarter is incomplete, interest should be calculated for complete quarter and the actual number of days, reckoning the year 365/366 days viz the calculation of interest on such deposits should be in order of completed quarters and days.”

• For Deposits of 2 Quarters and above, interest is calculated in quarterly compounded for complete quarters and where the terminal quarter incomplete, interest is calculated proportionately for the actual no of days reckoning the year 365/366 days.
• The Maturity Amount mentioned in the receipt is calculated without giving TDS effect. While calculating interest for half year(Quarterly compounded), the interest calculated for previous half year (quarterly compounded) minus TDS will be added to principal amount for calculating interest for current Half Year.
• For Short Deposits of less than 2 quarters but more than 1 quarter simple interest will be paid for complete quarter and plus interest for remaining days reckoning the year 365-366 days( without compound effect).
• For short deposits of less than one quarter interest is calculated proportionately for actual number for days reckoning the year 365-366 days.
• The interest on FCNR deposits shall be paid at the rates calculated in accordance with the basis prescribed by the Reserve Bank of India (RBI) from time to time for various maturities. The interest on FCNR deposits shall be paid on the basis of 360 days to a year and shall be calculated at intervals of 180 days each.
• Deduction of Income tax at source from payment of interest on time deposits (section 194A of income tax act 1961) w.e.f 1st July 1995

Income Tax is to be deducted in cases where the total interest paid or credited on all time deposits in the name of a depositor with Bank as a whole, whether singly or jointly (as first named person) exceeds the specified limit per financial year as under income tax act 1961, Tax is to be deducted either at the time of credit to the account or payment of interest to the depositor whichever is earlier subject to change in limits of interest eligible for tax limit from time to time.

In case the depositor submits following Form before end of April every year, no tax may be deducted.

• Non-corporate customers other than Senior Citizens - Form No.15G along with PAN (w.e.f. 1st April 2010).
• Senior Citizens i.e. individuals of the age of -60- years or more - Form No.15H along with PAN (w.e.f. 1st April 2010) w.e.f. 1st April 2010 I.T. Department has made it mandatory to quote Permanent Account No. (PAN) by deductees in all cases where TDS is applicable, failure of which would attract the TDS at a higher rate of 20% (against normal rate of 10%) or normal rate whichever is higher. Further it has also been made compulsory to mention PAN on form No.15G / 15H w.e.f. 1st April 2010.
• The Bank will issue a system generated tax deduction certificate (TDS Certificate) for the amount of tax deducted on quarterly basis.
• Interest earned/accrued on NRE & FCNR Term Deposits is tax free in India under the relevant provisions of Income Tax Act in India and hence no tax at source is deductible in respect of these deposits. “In case of NRO deposits” The depositor can claim the benefit of reduced rates of tax under Double Tax Avoidance Agreement (DTAA), which India has with the governments of various countries, by submitting the documents prescribed by the Bank at the beginning of every financial year.

However, Bank has statutory obligation to deduct tax at source on any interest paid / payable on NRO Term Deposits at the specified rates. If PAN is submitted with a declaration applicable under Double Tax Avoidance Treaty - TDS is deducted @ applicable rate for the country of residence of the customer.

• If PAN is submitted without declaration - TDS is deducted @30%
• If declaration is submitted without PAN - TDS @normal rate or 20% whichever is higher.
• If PAN and declaration is not submitted - TDS @30%
• All interest payments will be rounded off to the nearest rupee.
• 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 such mandate, the Bank will automatically renew the deposit as under.
• If Deposit is placed for more than one year it will be automatically renewed for one year at the prevailing rate on due date.
• If Deposit is placed for less than one year it will be automatically renewed for same period at the prevailing rate on due date.

In case, the customer wishes to make changes in the tenure or wants premature proceeds of the Term deposit, the same is allowed at the written request of the customer. In case of deposits under callable scheme premature withdrawal of bulk deposit is done as per Bank’s discretion.

• Rate of Interest to Senior Citizen: An additional interest @ 0.50 % is payable for deposits below Rs. 1 crore. only

• Payment of Instalments:The instalment for any calendar month must be paid on or before the last working day of that month. In case of delay in payment of any instalment, penalty shall be charged which is at present, `.1.00 + GST for every `.100 p.m., fraction of a number being treated as a full month for the purpose of calculating such penalty.
  Instalments paid during the course of the calendar month in which it is due, shall be deemed as payment made in time.
  Alternatively, the depositor may continue the account till maturity without regularising it (i.e., without paying the amount of instalment in arrears plus penal interest). In such cases deposits are to be treated  at par with Yatha Shakti Jama Yojana for the purpose of calculation of interest.

• Nomination Facility:Nomination facility will be available

• Tax Deduction at Source: TDS will be deducted as per income tax rules. No TDS will be deducted if a person submits form 15G/ 15H as applicable.

• TDS Certificate: TDS certificate will be provided to all customers.

• Advance Against Deposits:This facility is not available to a minor account in single name and HUF. For advances taken against deposits, if the depositor does not settle the account within 90 days, bank has the right to settle the overdraft account against his term deposit.

• Interest certificate available at request of customer
• Customer will be provided with a passbook for the account
• Recurring Deposits can be transferred from one branch to another branch at the request of the customer.

• Mode of Payment: Maturity proceeds are credited to the SB/CA account of the customer. In cases where there are no operative accounts of the customer, maturity proceeds can be given in cash below Rs. 20,000 above which DD/ pay order will be issued.

• Minor Accounts can be opened for individuals above 10 years subject to maximum cap of Rs. 1,00,000

• A regular RD can be converted to Baroda Yatha Shakti Jama Yojana Scheme.

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