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Individuals are allowed to open account under this head. This deposit is meant for meeting the educational expenses of children which arises in future.

Rs: 1000 and its multiples can make as deposit under this scheme.

Minimum Deposit amount   :        1000.

Maximum deposit amount   :        No limit

Period of deposit        :        Minimum 7 years   Max   10 years

Steps                    :        in steps of 12 months

After maturity the principal with interest is to be refunded in lump sum or 5 equal yearly installments. The option for repayment of deposit should be exercised by the depositor at the time of opening the deposit itself.

Customer is given the option to claim the maturity amount in full along with the interest on the maturity date.

Customer is also given the option to get the maturity proceeds in 5 equal installments commencing from the maturity date.  The bank has defined the installment amount by pre-defining the structured payment schedule.

The customer will exercise the option of repayment at the time of opening the deposit itself.

Bank issues deposit receipt after getting the deposit amount

Pre-printed stationery in the name “INDIVIDUAL FIXED DEPOSIT RECEIPT” being issued.

Maturity value of the deposit should come on the face of Fixed Deposit receipt.

Interest will be paid only after due date of deposit. Interest is calculated on quarterly compounding basis.

Interest is calculated using the formula PNR/1200.

No booking concept for interest calculation.  Directly Interest Paid account is debited and credited to the customers’ account on the due date.

For pre-mature closing of deposit interest is calculated in the following manner:

Rate applicable for the period to which the deposit stands with the bank less 1% is collected as penalty for pre-mature closing.

Preferential rate of 1% is allowed to staff members and also to ex-staff members.

½ % of preferential rate is being given to senior citizens. If the ex-staff is a senior citizen, then 1.5 % of preferential rate is applicable.

Loan facility is available under following terms and conditions.

1)    85% of deposit amount shall be given.

2) Interest rate for FD loan is 2% above the contract rate.In this case interest for loan is to be calculated on quarterly compounding basis.

Lien facility is not available.

Fixed deposit receipt is not transferable.

When the deposit becomes matured, it is not transferred to Matured Fixed Deposit Scheme. It retains with the same GL Head.

Nomination is made compulsory.  Nomination is applicable for the respective individual deposits.

Rate of interest is same as applicable to Fixed Deposit Individuals.

Any person/s approved by the Bank may open a Recurring Deposit Account on his/her/their signing the prescribed application form and agreeing to abide by the rules governing the account.
All person(s)/Associations etc. eligible to open FD accounts are also eligible to open this account
Mode of payment of installments:

Monthly installments may be remitted by the depositor in cash or through schedules (either transfer or clearing). In the case of remittance by cheque, the installments should be credited to the account only after realization of the cheque.

Standing instructions to debit any of his operative account (SB/Current Account/Over Draft) may be obtained from the depositor to credit the monthly installments to his Recurring Deposit Account regularly. In case of standing instructions the depositor should take care to keep sufficient balance in his account to enable the bank to recover monthly installments.
The depositor may also remit monthly installments by Mail transfer (MT) at par through any branch of the bank.

Remittance of monthly Installments:

Installments ordinarily fall due in each successive month on the date on which the account was opened, in which case the deposit would mature for payment on the same date after the expiry of the stipulated number of installments fixed.

Monthly installments can also be paid on any day during the month to which the installment relates without levying penalty if the depositor so desires provided, in all such cases maturity date of such RD shall stand postponed to the last date of the month in which the Recurring Deposit Account is to mature.

The recurring Deposit Account holders are free to choose any of the above alternative provisions which can be exercised by them even in respect of their RD A/c opened already.
Issuing of Pass Book:

On payment of first installment, the depositor will be supplied, free of charge, with a pass book, entries wherein will be duly initialed by an officer of the bank.

Premature withdrawal of deposit:

A depositor may, if he so wishes, close the account and withdraw the deposit before expiry on giving 10 days notice of intention to close the account.

No interest is payable in case of premature closure of Recurring Deposit Account with in 3 months of its opening.

In other cases simple interest should be paid at 1% less than the rate of interest applicable to the deposit for the period for which the deposit remained with the bank.

Penal interest, if any, charged earlier should be refunded to the depositor in all such cases.
No account will be allowed to be closed within 6 months from the date of its opening.
Loan Facility

The Bank may at its discretion grant a loan on the security of Recurring Deposit up to a maximum of 90% of the balance to the credit of the depositor.

Only one loan shall be outstanding at a time.
The bank reserves the right to appropriate the balance accumulated in the account against which the loan is availed and to adjust the same towards the dues of the depositor at the time of payment or on or before maturity of the deposit.
The balance, if any, left after such recovery will however be paid to the depositor.

Interest on loans will be 2% extra to the rate for term deposits in force, compounded to monthly/quarterly rests.

Interest on loans will be 2% extra to the rate for term deposits in force, compounded to monthly/quarterly rests.

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