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Recurring Account


  • Monthly saving plan
  • An element of compulsion in savings.
  • Savings grow steadily.
  • Effective rate of interest works out to be higher.
  • Under this scheme, deposits are accepted in monthly installments for a stipulated period and on expiry of this period, the total amount of installments deposited is repaid with interest compounded on monthly/quarterly basis.

Amount of deposit:
  • Recurring Deposits are accepted in monthly installments of Rs.10.00 and its exact multiples thereof and there is no ceiling as to the maximum amount of monthly installment.
  • The maturity value for each period vary in accordance   with the change in  the  interest rate for deposits; but the period agreed upon   when the account  is opened cannot be altered subsequently.

Period of Deposit:
  • The period of deposit is to be fixed at the time of opening the account and no deviations are allowed during the tenor of the deposit. Accounts  can  be  opened  for  a  period  of  12  months or more in completed quarters and up to a  maximum period of 120 months.
  • The maturity value for each period varies in accordance with the change in the term of deposit.

Who can deposit/Opening of Recurring Deposit:
  • 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.

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