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Withdraw at an ATM

1.

Step

Use an instant cash card. To do this, you need to already have your debit card set up
with your bank to use at an ATM. Usually, using an ATM affiliated with your bank is
best; however, most cash machines will work but you might incur fees from the ATM
owner and/or your bank.

2.

Step

Insert your card and enter your PIN number. If you don't have one, call your bank
beforehand and request one. You will not be able to withdraw money without a PIN.

3.

Step

Follow the on-screen instructions. If you have more than one account (like both
checking and savings) you need to specify which account you want the money to
come from. Be sure to push the savings button. Then specify how much money you
want to withdraw.

4.

Step

Wait for the machine to process your transaction, then take your receipt, money and
card out of the machine.

Withdraw at a Bank

5.

Step

Make a withdrawal at your bank. To do this, you will need to fill out a withdrawal slip
that has your name, account number and the amount you want. If you don't have a
book of withdrawal slips, you can get one at the bank.

6.

Step

Take your withdrawal slip to the teller and provide any needed identification.

7.

Step

The teller will count out the money for you and then you can be on your way.
Savings Bank Accounts are meant to promote the habit of saving among the citizens while allowing them to
use their funds when required. The main advantage of Savings Bank Account is its high liquidity and safety.
On top of that Savings Bank Account earn moderate interest too. The rate of interest is decided and
periodically reviewed by the Government of India. Presently, the rate of interest is 3.5% compounded half
yearly.
Savings Bank Account can be opened in the name of an individual or in joint names of the depositors.
Savings Bank Accounts can also be opened and operated by the minors provided they have completed ten
years of age. Accounts by Hindu Undivided Families (HUF) not engaged in any trading or business activity,
can
be
opened
in
the
name
of
the
Karta
of
the
HUF.
The minimum balance to be maintained in an ordinary savings bank account varies from bank to bank. It is
less in case of public sector banks and comparatively higher in case of private banks. In most of the public
sector banks, minimum balance to be maintained is Rs. 100. In accounts where cheque books are issued, a
minimum balance of Rs. 500/- has to be maintained. For Pension Savings Accounts, minimum balance to be

maintained

is

Rs.

5/-

without

cheque

facility

and

Rs.

250/-

with

cheque

Things
to
Consider
While
Opening
a
Savings
It is advisable to seek the following information from bank before opening the account:

facility.
Account

Minimum balance requirements.

Penal provisions in case the balance falls below the minimum stipulated amount

Penalty in case of return of cheques issued or instruments sent on collection.

Collection facilities etc. offered and charges applicable.

Details of charges, if any for issue of cheque books and limits fixed on number of withdrawals,
cash drawings, etc.

Document Required For Opening a Savings Account

Two passport size photographs

Proof of residence i.e. Passport/driving license/Gas / Telephone / Electricity Bill/ Ration card/voters
identity card

An introduction of the person from an existing account holder.

PAN number / Declaration in form no.60 or 61 as per the Income Tax Act 1961.

Bank Fixed Deposits are also known as Term Deposits. In a Fixed Deposit Account, a certain sum of money
is deposited in the bank for a specified time period with a fixed rate of interest. The rate of interest for Bank
Fixed Deposits depends on the maturity period. It is higher in case of longer maturity period. There is great
flexibility in maturity period and it ranges from 15days to 5 years. The interest can be compounded quaterly,
half-yearly or annually and varies from bank to bank. Minimum deposit amount is Rs 1000/- and there is no
upper limit. Loan / overdraft facility is available against bank fixed deposits. Premature withdrawal is
permissible
but
it
involves
loss
of
interest.
Things
to
Remember
Before
Opening
a
FD
Account
Before opening a fixed deposit account, check the financial position of the bank. Also, try to check the rates
of interest for different banks for different periods. Instead of putting a big amount in one fixed deposit, keep
the amount in five or ten small deposits. This way, in case of any premature withdrawal of partial amount,
then only one or two deposits may need to be prematurely encashed. Thus, the loss of interest will be less
than if a single big deposit were to be encashed. Check deposit receipts carefully to ensure that all details
have been properly and accurately filled in. Do not leave the renewal column unfilled. Otherwise, on maturity
the fixed deposit amount will go back into an FD. Before investing in a FD it is important to consider the rate
of interest and the inflation rate. A high inflation rate can eat into your real returns. So, it is vital to have a
look
at
the
inflation
rate
before
arriving
at
the
real
rate
of
interest.
Advantages of Fixed Deposit

Fixed deposits with the banks are nearly 100% safe as all the banks operating in the country,
irrespective of whether they are nationalised, private, or foreign, are governed by the RBI's rules
and regulations, and give due weightage to the interest of the investor. Till recently, all bank
deposits were insured under the Deposit Insurance & Credit Guarantee Scheme of India, which
has now been made optional. Nonetheless, bank deposits are among the safest modes of
investment.

One can get loans up to 75- 90% of the deposit amount from banks against fixed deposit receipts.
Though the interest charged will be slightly more than the interest earned by the deposit.

Tax Implications

The amount invested in fixed deposits with a maturity period of 5 years in a Scheduled bank is
eligible for tax deduction under section 80C. However, the interest earned on the deposit is
taxable.

Tax will be deducted at the source, if the interest income on a fixed deposit per annum exceeds
Rs.10000.

How
To
Open
a
Bank
Fixed
Deposit
Account
You can open a FD account with any bank, be it nationalized, private or foreign and make the deposit.
However, some banks insist that you open a savings account with them to operate a FD.
Demat refers to a dematerialised account. Demat account is just like a bank account where actual money is
replaced by shares. Just as a bank account is required if we want to save money or make cheque
payments, we need to open a demat account in order to buy or sell shares. A Demat Account holds portfolio
of shares in electronic form and obviates the need to hold shares in physical form. The account offers a
secure and convenient way to keep track of shares and investments without the hassle of handling physical
documents that get mutilated or lost in transit. The Securities and Exchange Board of India (SEBI) mandates
a
demat
account
for
share
trading
involving
more
than
500
shares.
Benefits of Demat Account

Eliminates risks associated with physical certificates such as bad delivery, fake securities, delays,
forgery, counterfeiting, thefts and loss due to fire.

Reduces brokerage charges

Pledging/Hypothecation of shares is easier

Enables quick ownership of securities on settlement thereby resulting in increased liquidity

Reduction in paperwork involved in transfer of securities

Demat account obviates the need to pay stamp duty (in case of physical shares, 0.5 per cent
stamp duty is payable).

There is no odd lot problem. Even one share can be bought or sold.

Documents
Required
for
Opening
a
Demat
Account
You can open a demat account with a bank or a depository participant (DP). Banks usually give preference
to those customers who have a savings or current account with the bank. Along with the application form,
following documents are required:

A cancelled MICR cheque

Identity proof

Address proof

Copy of PAN card (mandatory)

Photograph of the applicant.

Procedure
for
Dematerialisation
For dematerialization of physical share certificate(s) you have to first fill the demat request form (DRF). The
form can be obtained from the DP with whom your demat account is opened. Deface the share certificate(s)
by writing across Surrendered for dematerialisation. Submit the DRF & share certificate(s) to DP. DP would
forward them to the issuer. After dematerialisation, your depository account would be credited with the
dematerialised securities.

Current Account is primarily meant for businessmen, firms, companies, public enterprises etc. that have
numerous daily banking transactions. Current Accounts are cheque operated accounts meant neither for the
purpose of earning interest nor for the purpose of savings but only for convenience of business hence they
are non-interest bearing accounts. In a Current Account, a customer can deposit any amount of money any
number of times. He can also withdraw any amount as many times as he wants, as long as he has funds to
his credit. Generally, a higher minimum balance as compared to Savings Account is required to be
maintained
in
Current
account.
As per RBI directive banks are not allowed to pay any interest on the balances maintained in Current
accounts. However, in case of death of the account holder his legal heirs are paid interest at the rates
applicable to Savings bank deposit from the date of death till the date of settlement. Because of the large
number of transactions in the account and volatile nature of balances maintained, banks usually levy certain
service
charges
for
operating
a
Current
account.
Current Account can be opened by:

An individual who has attained majority.

Two or more individuals in their joint names.

Sole proprietorship concerns.

Partnership concerns.

Hindu Undivided Family (HUF).

Limited Companies.

Clubs, Societies.

Trusts, Executors and Administrators.

Others - Govt. and semi Govt. bodies, local authorities etc.

Documents

Required

for

Opening

Current

Account

Following documents are required in case of individuals

Two passport size photographs

Proof of residence i.e. Passport/driving license/Gas / Telephone / Electricity Bill/ Ration card/voters
identity card

An introduction of the person from an existing account holder.

PAN number / Declaration in form no.60 or 61 as per the Income Tax Act 1961

Different set of documents are required as per bank's norms if the account is opened by partnership firms,
private and public limited companies, HUFs / specified associates, societies, trusts etc.
Under a Recurring Deposit account (RD account), a specific amount is invested in bank on monthly basis for
a fixed rate of return. The deposit has a fixed tenure, at the end of which the principal sum as well as the
interest earned during that period is returned to the investor. Recurring Bank Account provides the element
of compulsion to save at high rates of interest applicable to Term Deposits along with liquidity to access
those savings any time. Since a recurring deposit offers a fixed rate of return, it does not provide protection
against
inflation.
There is great flexibility in period of deposit with maturity ranging from 6 months to 120 months. The
minimum monthly deposit varies from bank to bank. In most of the public sector banks, one can start a
Recurring Deposit Account with a monthly installment of Rs. 100/- only. There is no upper limit on investing.

The rate of interest varies between 7 and 11 percent depending on the maturity period. Loan/overdraft
facility
is
also
available
against
Recurring
Bank
Deposits.
The deposit for RD account is paid in monthly installments and each subsequent monthly installment has to
be made before the end of the calendar month and is equal to the first deposit. In case of default in
payment, penalty is levied for delayed deposit at the rate of Rs. 1.50/- for every Rs. 100/- per month for
deposits up to 5 years and Rs. 2/- per Rs. 100/- in case of longer maturities.
In case of Recurring Deposit being closed before completing the original term of the deposit, interest will be
paid at the rate applicable on the date of deposit, for the period for which the deposit has remained with the
Bank. Premature withdrawal is also permissible but penalty is levied. TDS is not applicable on Recurring
Deposits.
How
to
open
a
RD
Account
A Recurring Bank Deposit account can be opened at any bank that offers this facility. However, some banks
insist that you open a savings bank account with them to operate a Recurring Deposit account.

ne of the reasons for boom in Indian economy is that now a days loans are easily available and the rate of
interests at which they are available are very reasonable. Banks are giving loan for and loan against any and
every thing. Government too is encouraging people to take loans for certain purposes. For example,
government is encouraging people to take housing loans by giving tax concessions.
In view of the deluge of loans that are available in the market today, we have come up with useful
information about variety of loans that are available in India. These include:
Home Loans India
To have one's own home is the dream of every person. Now that getting a home loan is so easy it seems
everyone can fulfill his / her long cherished dream.
Auto Loans India
With a plethora of auto loans opportunities available these days, it is now possible for you to buy your dream
car.
Business Loans India
Several banks give loans to cater to business requirements. Banks have laid out a number of products
specifically catering to SSI (small-scale industries) and Small Business Borrowers.
Education Loans India
Education is the essence of life. To ensure that no deserving student is denied education for want of funds
government is promoting education loans in a big way.
Marriage Loans India
Marriage is one of the most important events in a person's life. You want to make sure that all the
arrangements are perfect and match the occasion.
Personal Loans India
Personal loan is an unsecured loan that does not require any security for borrowing money. Personal loans
help you to take care of your immediate requirements without much of a hassle.
Loans against home
Loan against home connotes a loan that is given or disbursed against the mortgage of home. The loan
against property is given as a certain percentage of market value of the property.
Loans against auto
Loan against auto is available in the form of overdraft against car. The rate of interest is lower than interest
in case of personal loan.
Loans against shares

It is advisable to take loan against equity (shares & debentures) only when you are expecting a certain sum
of money a few months down the line and you need some funds in the interim.

Business loans are available to self employed professionals, firms and corporations, to meet their operating
expenses, finance capital expenditure (or acquisition of fixed assets) towards starting or expanding a
business. Even industrial units are given business loans, to swap existing high-cost debt from other bank /
financial institution. Apart from providing funding, bank can also issue letters of credit or give a guarantee, on
behalf of the customer, to the suppliers and even government departments, for the procurement of goods
and
services
on
credit.
The maximum amount of business loan that can be sanctioned varies from bank to bank. However, the
minimum loan amount is Rs. 25000 and maximum loan tenure is 5 years. Generally, no security is required
for business credit up to a certain limit. For business loans above the limit, banks usually require a collateral
security or a percentage of business loans as margin, in the form of fixed deposit with the bank. Business
loans are similar to an overdraft and are available like a limit on current account. In this case, the interest is
charged only on the actual amount utilized, rather the entire amount of loan.
Types

of

Business

Loans

Professional
Loans
Professional loans, as their very name suggests, are provided to self employed professionals like Doctor,
Chartered Accountant, Interior Decorator, Architect, Company Secretary, etc. Unsecured in nature, this type
of loan is not given to manufacturing, trading or processing units. The amount of loan varies between Rs.
25000 to Rs. 25 lakh, considering the age of the applicant, his financial standing, his repayment capacity,
tenure
of
the
loan
(maximum
5
years),
etc.
In case of professional loans, the rate of interest depends upon the prime lending rate, is calculated on
diminishing balance and can be on the fixed as well as fluctuating basis. In many cases, it depends upon the
customer's profile and his financial capacity. The payment is made through EMIs and in only a few cases,
tangible collateral security is required. Most of the finance companies also charge a process fee, usually 1%
of
the
loan
amount.
Documents Required

Proof of Identity (Passport Copy/ Voters ID Card/ Driving License)

Address Proof (Ration Card/ Telephone Bill/ /Electricity Bill/ Passport)

Bank Statements (latest 6 months bank statement /passbook)

Latest ITR, along with computation of income

Balance Sheet & P&L Account for the last 2 yrs, certified by a CA

Qualification Proof of the Highest Professional Degree

Proof of Continuation (Trade license /Establishment /Sales Tax Certificate)

Other Mandatory Documents (Sole Proprietorship - Declaration, Partnership - Copy of Partnership


Deed, Apart from Copy of MOA, AOA & Board Resolution)

Two passport size photographs

Trade
Loans
Trade loans are provided to traders/ businessmen, so as to help them either open a new business or
operate/expand an existing one. The amount of loan varies between Rs. 25000 to Rs. 100 lakh, considering
the age of the customer, his financial standing, his repayment capacity, tenure of the loan, etc. The
maximum duration for which the loan is given is 5 years and it has to be repaid through Equated Monthly

Installments

or

EMI.

The rate of interest depends upon the prime lending rate and can be offered on the fixed as well as
fluctuating basis. There are many banks that require customers to furnish collateral security for the loan, in
the form of mortgage of land (not agricultural land) and building. Apart from that, National Savings
Certificates, Government Bonds, Bank's Term Deposits, Assignment of Life Insurance Policies, Approved
Shares & Bonds (in the name of borrower/proprietor/partner/director) are also acceptable.
Type of Concerns Given Business Loan

Sole Proprietorships

Partnerships

Private Limited Companies

Documents

Required

Sole Proprietorship / Partnership Firm

Proof of Identity (Copy of Sales Tax / VAT /Service Tax / Excise Registration Receipt OR
Registration under Shops and Establishment Act OR PAN ID / IT Return of the Concern OR
Water / Electricity / Municipal Tax Bill in the Name of the Concern OR MAPIN Card in the Name of
the Concern)

Proof of Individual Identity (Copy of Passport/Voter's Identity Card/Photo PAN Card/Driving


License/MAPIN Card)

Proof of Residence Address (Copy of Passport/Voter's Identity Card/Driving License/Ration


Card/Life Insurance Policy/Electricity Bill/Telephone Bill)

PAN Number/Form 60 of the Concern

Financial Documents (Copy of P & L Account and Balance Sheet for last two years, audited by a
CA and Copies of IT returns for the last two years)

Bank Statements for last 6 months

Partnership Deed (Required only in case of Partnership Firm)

Proof of Place of Business

Two passport size photographs

Private Limited Company

Proof of Identity (Copy of Sales Tax / VAT /Service Tax / Excise Registration OR Registration under
Shops and Establishment Act OR PAN ID / IT Return of the Concern OR Water / Electricity /
Municipal Tax Bill in the Name of the Concern OR MAPIN Card in the Name of the Concern)

Memorandum and Articles of Association (Copy of Certificate of Incorporation)

Board Resolution (Copy of Annual Return establishing the shareholding pattern)

Proof of Individual Identity for the authorized signatories and 2 directors, including the managing
director (Copy of Passport/Voter's Identity Card/Photo PAN Card/Driving License/MAPIN Card)

List of Directors

Copy of Form 32 filed with ROC

PAN Card / Form 60 of the Concern

Financial Documents (Copy of P & L and Balance Sheet for last two years, audited by a CA, and
Copies of IT returns for the last two years)

Bank Statements for last 6 months

Proof of Place of Business

Two passport size photographs

More

Information

Short-term
Used
for

short-term

working

capital

requirements

and

paid

within

Loans
year.

Intermediate
Loans
Used for new business, to build inventory, buy equipment or increase working capital, and paid between 1
and
3
years.
Long-term
Loans
Used for well established business, to increase fixed assets, for related business acquisitions or expansion,
and paid between 3 and 5 years. At times, used for start-up business, to purchase land or buildings, fund
construction
efforts
or
finance
long-term
working
capital.
Note
Two types of charges might be levied in case of business loan - processing fee and Pre-payment fee.
Processing fee is payable at the time of processing of loan application. Pre-payment fee is payable in case
you decide to pre-close your loan account, by paying the entire/part of the loan before it is due.
Education is the essence of life. To ensure that no deserving student is denied education for want of funds,
the government is promoting education loans in a big way. The basic aim or idea behind education loan is to
bring education within the reach of students and help them improve their prospects in life. Any student who
has secured admission in an institute of repute, whose degree/diploma is recognized by University/Institute
affiliated to any Central/State Statutory Body or recognized by AICTE (All India Council of Technical
Education)
and
other
institutes
of
repute,
is
eligible
for
educational
loan.
Education loans cover cost of the school/college fee, hostel expenses, and cost of books and stationery.
Apart from this, any other expense required to complete the course can also be considered. The maximum
amount of education loan is up to Rs. 7.50 lakh in case of studies in India and Rs 15 lakhs for studying
abroad. The sum of money offered is against a third-party guarantee. The third-party guarantee can come
from an uncle, neighbor or friend standing guarantee for the full amount of the loan.
On an average, an education loan has to be repaid over a period of 5 to 7 years, with the provision of a
grace period of one year after completion of studies. The loan money has to be repaid within 84 months in
equated monthly installments (EMIs), commencing 12 months after course completion or 6 months after
getting the job, whichever is earlier. In case of overseas study loan of 7 lakhs or above, the sum of money is
usually given against fixed deposits, NSC certificates and property worth the loan amount.
General Information

The exact rate of interest for education loan differs from one bank to the other. However, it usually
varies from 10 to 15 percent.

Apart from the fee of the course, a list of other expenses is also covered by education loans.
However, the list depends upon the bank from which you are taking the loan.

Education loan can be offered at fixed as well as floating interest rate. The interest is usually
charged on a daily or monthly reducing balance.

Generally, nationalized banks have been seen to offer variable interest rates, while private and
foreign banks charged fixed interest rates on education loans.

While applying for education loan, you will have to pay a percentage of the loan amount, as
processing fee.

In most of the cases, the entire fee for a course is not financed by the bank. A certain proportion,
called margin, has to be paid by the applicant. The margin requirements on education loans are
not very rigid, with the average being 5 percent for studying in India and 15 per cent for abroad.

Eligibility Criteria

The applicant should be an Indian national.

He/she must have secured admission to professional/technical courses, through entrance


test/selection process

He/she should be around 16-26 years of age or any other range specified by the bank.

He/she should not be a minor.

He/she should have a good academic track record.

He/she should have parents or guardians with stable source of income.

He/she should have secured admission to a recognized university in India or abroad.

Documents Required

Mark sheet of last qualifying examination for school and graduate studies in India

Proof of admission to the course

Schedule of expenses for the course

Copies of letter confirming scholarship, if any

Copies of foreign exchange permit, if applicable

2 passport size photographs

Statement of Bank account for the last six months of borrower/parents

Income tax assessment order, not more than 2 years old

Brief statement of assets and liabilities of borrower/parents

If not an existing bank customer, Proof of Identity and Residence

Two passport size photographs

Real estate is currently one of the fastest growing sectors in India. Banking sector is also registering
profitable business since the last few decades, with the growth of real estate. Majority of the banks are also
offering easy home loans at attractive rates to their customers. Now that getting a home loan is so easy, it
seems everyone can fulfill his / her long cherished dreams of purchasing lands, building their houses and
expanding their homes. Different types of home loans are tailored to suit the heterogeneous requirements of
the customers. The description of some of the most common types of home loans is given below.
Types Of Home Loans

Home Purchase Loans: This is the basic home loan for the purchase of a new home.

Home Improvement Loans: These loans are given for implementing repair works and renovations
in a home that has already been purchased by you.

Home Construction Loan: This loan is available for the construction of a new home.

Home Extension Loan: This is given for expanding or extending an existing home. For instance,
you may apply for a loan for the addition of an extra room in your home and for similar cases.

Home Conversion Loan: This is available for those who have financed the present home with a
home loan and wish to purchase and move to another home for which some extra funds are
required. Through home conversion loan, the existing loan is transferred to the new home including
the extra amount required, eliminating the need of pre-payment of the previous loan.

Land Purchase Loans: This loan is available for purchase of land for both construction and
investment purposes.

Bridge Loans: Bridge loans are designed for people who wish to sell the existing home and
purchase another one. The bridge loans help finance the new home.

Balance Transfer Loans: Balance transfer loans help to pay off an existing home loan and avail
the option of a loan with a lower rate of interest.

Refinance Loans: This loan helps you pay off the debt you have incurred from private sources
such as relatives and friends, for the purchase of your present home.

Stamp Duty Loans: This loan is sanctioned to pay the stamp duty amount that needs to be paid
on the purchase of property.

Features
of
Home
Loan
Home loans are available on fixed rate of interest as well as floating rate of interest. In fixed rate loans, the
interest rate remains fixed over the life of the loan, irrespective of the interest rates in the open market. The
plus point of fixed rate loans is that they remain steady over the years, making at least one aspect of your
monthly cash flow predictable. However, the flip side is that the lenders charge a higher rate of interest for
fixed-rate loans because if interest rates shoot up, they lose the opportunity to make more money on the
funds
they
are
lending.
In floating rate loans, the rate of interest changes according to a set formula as interest rates fluctuate in the
open market. The plus point is that lenders charge a lower rate for such loans because you are taking on
some of the interest-rate risk. The downside is that interest rates may rise anytime and you can end up
paying more than fixed rate loans. The type of interest you opt for will entirely depend on your personal
preferences.
General Information

The loan amount is based on the repayment capacity of the customer. However, it cannot be more
than 85% of the cost of the property (including the cost of the land).

The minimum term of home loan is 5 years, while the maximum duration for the loan is 20 years,
subject to the retirement age of the applicant.

Home Loans can be applied either individually or jointly, with spouse, children (son or daughter)
and even earning parents (father or mother), but if staying with the applicant and having regular
income.

Home loan eligibility can be enhanced by repaying the outstanding loans, clubbing the income,
increasing the home loan tenure and opting for a step-up loan.

The amount of loan sanctioned varies from bank to bank. Generally, the maximum loan amount
granted for the applicant would be 80% to 85% of the cost of the home.

The eligibility for the applicant depends upon his/her capacity of repayment. It stiffens with the
increase in home loan rates.

Processing charge, pre-payment penalties, commitment fees and miscellaneous costs accompany
a home loan, in many of the cases.

Providing additional security, like bonds, fixed deposits and LIC policies, or having a guarantor can
enhance your eligibility for a home loan.

Eligibility Criteria

The minimum age limit for the person applying for loan is 21 years.

For Government employees and those working at public limited companies, the maximum age limit
for applying for home loan is 60 years, while for salaried individuals, it is 58 years.. For self
employed people, the maximum age limit is 65 years.

The applicant should be graduate.

The applicant should have a stable source of income, at the time of availing the loan and should
have a saving history as well.

Documents

Required

Salaried Individuals

Salary slip/Form 16 A

A photocopy of the first and last pages of Ration card or copy of PAN/Telephone/Electricity bills

A photocopy of Investments (FD Certificates, Shares, any fixed asset etc. or any other documents
supporting the financial background of the borrower

A photocopy of LIC policies with the latest premium payment receipts (if any).

Two passport size photographs

A photocopy of bank statement for the last six months

Self-Employed/Businessmen

A brief introduction of Business/Profession

Before opening any Deposit Account, the bank will carry out due diligence as
required under "Know Your Customer" (KYC) guidelines issued by RBI and or such
other norms or procedures adopted by the bank. If the decision to open an account
of a prospective depositor requires clearance at a higher level, reasons for any delay
in opening of the account will be informed to him and the final decision of the bank
will be conveyed at the earliest to him.
The account
opening forms and
other material would
be provided to the
prospective
depositor by the
bank. The same will
contain details of
information to be

furnished and
documents to be
submitted for
verification and / or
for record. It is
expected of the
bank official to
explain the
procedural
formalities and
provide necessary
clarifications sought
by the prospective
depositor when he
approaches the
bank for opening a
Deposit Account.
For deposit products
like Savings Bank
Account and
Current Deposit
Account, the bank
will normally
stipulate certain
minimum/average
balances to be
maintained as a part
of the terms and
conditions
governing operation
of such accounts.
Failure to maintain
stipulated minimum/
average balance in
the account will
attract levy of
charges as specified
by the bank. For
Savings Bank
Account, the bank
may also restrict the
number of
transactions, cash
withdrawals, etc., for
a given period.
Similarly, the bank
may specify charges
for issue of cheque
books, additional
statement of
accounts, duplicate
pass book, folio
charges, etc. All
such details,
regarding terms and
conditions for
operation of the
accounts and
schedule of charges
for various services
provided will be

communicated to
the prospective
depositor while
opening the
account.
Savings Bank
Accounts can be
opened for eligible
person / persons
and certain
organizations /
agencies (as
advised by Reserve
Bank of India (RBI)
from time to
time).These
accounts are
designed to help the
individual (personal
customers) to
inculcate the habit
of saving money
and to meet their
future requirement
of money. The
amounts can be
deposited/withdrawn
from these accounts
by way of
cheques/ATM. It
helps customers to
keep minimum cash
at home besides
earning interest.
Current Accounts
can be opened by
Individuals /
Partnership firms /
Private and Public
Limited Companies /
HUFs / Specified
Associates /
Societies / Trusts,
etc.
Term Deposit
Accounts can be
opened by
Individuals /
Partnership firms /
Private and Public
Limited Companies /
HUFs/ Specified
Associates /
Societies / Trusts,
etc. Bank has
tailored various
deposit schemes to
suit the needs and

expectations of
investing people in
every walk of life.
The due diligence
process, while
opening a Deposit
Account will involve
satisfying about the
identity of the
person, verification
of address,
satisfying about his
occupation and
source of income.
Obtaining
introduction of the
prospective
depositor from a
person acceptable
to the bank and
obtaining recent
photographs of the
person/s opening /
operating the
account are part of
the due diligence
process.
In addition to the
due diligence
requirements, under
KYC norms the
bank is required by
law to obtain
Permanent Account
Number (PAN) or
General Index
Register (GIR)
Number or
alternatively
declaration in Form
No. 60 or 61 as
specified under the
Income Tax Act /
Rules.
Deposit Accounts
can be opened by
an individual in his
own name (status:
known as account in
single name) or by
more than one
individual in their
own names (status:
known as Joint
Account). Savings
Bank Account can
also be opened by a
minor jointly with

natural guardian or
with mother as the
guardian (Status:
known as Minor's
Account). Minors
above the age of 12
will also be allowed
to open and operate
Saving Bank
Account
independently.
Operation of Joint
Account: The Joint
Account opened by
more than one
individual can be
operated by single
individual or by
more than one
individual jointly.
The mandate for
operating the
account can be
modified with the
consent of all
account holders.
The Savings Bank
Account opened by
minor jointly with
natural guardian /
guardian can be
operated by natural
guardian only.
The joint account
holders can give
any of the following
mandates for the
disposal of balance
in the above
accounts :

Either or
Survivor : If
the
account is
held by two
individuals
say, A & B,
the final
balance
alongwith
interest, if
applicable,
will be paid
to survivor
on death of
any one of
the
account

holders.

Anyone or
Survivor/s :
If the
account is
held by
more than
two
individuals
say, A, B
and C, the
final
balance
alongwith
interest, if
applicable,
will be paid
to the
survivor on
death of
any two
account
holders.
The above mandates will be applicable to or become operational only on or after the date of maturity of term
deposits. This mandate can be modified by the consent of all the account holders.
At the request of the depositor, the bank will register the mandate / power of attorney given by him
authorizing another person to operate the account on his behalf.
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.
A statement of account will be provided by the bank to Savings Bank as well as Current Deposit Account
Holders periodically as per terms and conditions of opening of the account.Passbook facility is avaliable
to all savings account holders free of cost.

PREAMBLE
One of the important functions of the Bank is to accept deposits from the public for the purpose of lending. In fact,
depositors are the major stakeholders of the Banking System. The depositors and their interests form the key area
of the regulatory framework for banking in India and this has been enshrined in the Banking Regulation Act, 1949.
The Reserve Bank of India is empowered to issue directives / advices on interest rates on deposits and other
aspects regarding conduct of deposit accounts from time to time. With liberalization in the financial system and
deregulation of interest rates, banks are now free to formulate deposit products within the broad guidelines issued
by RBI .
This policy document on deposits outlines the guiding principles in respect of formulation of various deposit
products offered by the Bank and terms and conditions governing the conduct of the account. The document
recognises the rights of depositors and aims at dissemination of information with regard to various aspects of
acceptance of deposits from the members of the public, conduct and operations of various deposits accounts,
payment of interest on various deposit accounts, closure of deposit accounts, method of disposal of deposits of
deceased depositors, etc., for the benefit of customers. It is expected that this document will impart greater
transparency in dealing with the individual customers and create awareness among customers of their rights. The
ultimate objective is that the customer will get services they are rightfully entitled to receive without demand.
While adopting this policy, the bank reiterates its commitments to individual customers outlined in Bankers' Fair
Practice Code of Indian Banks' Association. This document is a broad framework under which the rights of

common depositors are recognized. Detailed operational instructions on various deposit schemes and related
services will be issued from time to time
Types of Deposit Accounts : While various deposit products offered by the Bank are assigned different names. The deposit products can be
categorised broadly into the following types. Definition of major deposits schemes are as under : i) "Demand deposits" means a deposit received by the Bank which is withdrawable on demand;
ii) "Savings deposits" means a form of demand deposit which is subject to restrictions as to the number of
withdrawals as also the amounts of withdrawals permitted by the Bank during any specified period;
iii) "Term deposit" means a deposit received by the Bank for a fixed period withdrawable only after the expiry of
the fixed period and include deposits such as Recurring / Double Benefit Deposits / Short Deposits / Fixed Deposits
/Monthly Income Certificate /Quarterly Income Certificate etc.
iv) Notice Deposit means term deposit for specific period but withdrawable on giving atleast one complete
banking day's notice;
v) "Current Account" means a form of demand deposit wherefrom withdrawals are allowed any number of times
depending upon the balance in the account or up to a particular agreed amount and will also include other deposit
accounts which are neither Savings Deposit nor Term Deposit;

Account Opening and Operation of Deposit Accounts


A) The Bank before opening any deposit account will carry out due diligence as required under "Know Your
Customer" (KYC) guidelines issued by RBI and or such other norms or procedures adopted by the Bank. If the
decision to open an account of a prospective depositor requires clearance at a higher level, reasons for any delay
in opening of the account will be informed to him and the final decision of the Bank will be conveyed at the
earliest to him.
B) The account opening forms and other material would be provided to the prospective depositor by the Bank.
The same will contain details of information to be furnished and documents to be produced for verification and or
for record, it is expected of the Bank official opening the account, to explain the procedural formalities and
provide necessary clarifications sought by the prospective depositor when he approaches for opening a deposit
account.

C) For deposit products like Savings Bank Account and Current Deposit Account, the Bank will normally stipulate
certain minimum balances to be maintained as part of terms and conditions governing operation of such
accounts. Failure to maintain minimum balance in the account will attract levy of charges as specified by the Bank
from time to time. For Saving Bank Account the Bank may also place restrictions on number of transactions, cash
withdrawals, etc., for given period. Similarly, the Bank may specify charges for issue of cheques books, additional
statement of accounts, duplicate pass book, folio charges, etc. All such details, regarding terms and conditions for
operation of the accounts and schedule of charges for various services provided will be communicated to the
prospective depositor while opening the account.

D) Savings Bank Accounts can be opened for eligible person / persons and certain organizations / agencies (as
advised by Reserve Bank of India (RBI) from time to time)
Current Accounts can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs /
Specified Associates / Societies / Trusts, etc.
Term Deposits Accounts can be opened by individuals / partnership firms / Private and Public Limited Companies /
HUFs/ Specified Associates / Societies / Trusts, etc.

E) The due diligence process, while opening a deposit account will involve satisfying about the identity of the
person, verification of address, satisfying about his occupation and source of income. Obtaining introduction of
the prospective depositor from a person acceptable to the Bank and obtaining recent photograph of the person/s
opening / operating the account are part of due diligence process.

F) In addition to the due diligence requirements, under KYC norms the Bank is required by law to obtain
Permanent Account Number (PAN) or General Index Register (GIR) Number or alternatively declaration in Form No.
60 or 61 as specified under the Income Tax Act / Rules.
G) Deposit accounts can be opened by an individual in his own name (status : known as account in single name)
or by more than one individual in their own names (status : known as Joint Account) . Savings Bank Account can
also be opened by a minor jointly with natural guardian or with mother as the guardian (Status : known as Minor's
Account). Minors above the age of 10 will also be allowed to open and operate saving bank account
independently.
H) Operation of Joint Account - The Joint Account opened by more than one individual can be operated by single
individual or by more than one individual jointly. The mandate for operating the account can be modified with the
consent of all account holders. The Savings Bank Account opened by minor jointly with natural guardian /
guardian can be operated by natural guardian only.
I) The joint account holders can give any of the following mandates for the disposal of balance in the above
accounts :
i. Either or Survivor : If the account is held by two individuals say, A & B, the final balance alongwith interest, if
applicable, will be paid to survivor on death of anyone of the account holders.
ii. Anyone or Survivor/s : If the account is held by more than two individuals say, A, B and C, the final balance
alongwith interest, if applicable, will be paid to the survivor on death of any two account holders.

The above mandates will be applicable to or become operational only on or after the date of maturity of term
deposits. This mandate can be modified by the consent of all the account holders.

J) A the request of the depositor, the Bank will register mandate / power of attorney given by him authorizing
another person to operate the account on his behalf.
K) 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 seek instructions from the depositor/s as to the disposal of the deposit by sending an
intimation before 15 days of the maturity date of term deposit.
L) Nomination facility is available on all deposit accounts opened by the individuals. Nomination is also available
to a sole proprietory concern account. Nomination can be made in favour of one individual only. Nomination so
made can be cancelled or changed by the account holder/s any time. While making nomination, cancellation or
change thereof, it is required to be witnessed by a third party. Nomination can be modified by the consent of
account holder/s. Nomination can be made in favour of a minor also.
Bank recommends that all depositors avail nomination facility. The nominee, in the event of death of the
depositor/s, would receive the balance outstanding in the account as a trustee of legal heirs. The depositor will be
informed of the advantages of the nomination facility while opening a deposit account.

M) A statement of account will be provided by the Bank to Savings Bank as well as Current Deposit Account
Holders periodically as per terms and conditions of opening of the account.. Alternatively, the Bank may issue a
Pass Book to these account holders.
N) The deposit accounts may be transferred to any other branch of the Bank at the request of the depositor.
Interest Payments
i) Interest shall be paid on saving account at the rate specified by Reserve Bank of India directive from time to
time. However, term deposit interest rates are decided by the Bank within the general guidelines issued by the
Reserve Bank of India from time to time.
ii) In terms of Reserve Bank of India directives, interest shall be calculated at quarterly 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 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.

iii) The rate of interest on deposits will be prominently displayed in the branch premises. Changes, if any, with
regard to the deposit schemes and other related services shall also be communicated upfront and shall be
prominently displayed.

Opening and operating a Bank Account


Current Accounts
A current account provides the account holder with a chequebook and an ATM card. There may also be
an overdraft facility. This allows more money than is in the account to be withdrawn. The bank charges a
fee and interest for being overdrawn.
Advantages:

Access to account 24 hours a day


Use of a cheque book / ATM card (no need to carry cash)
Overdraft facility
Ability to set up direct debits and standing orders.

Disadvantages:

There is usually no interest paid on the account


Fees have to be paid to the bank to operate the account
Interest has to be paid on the overdraft

Opening a current account


A current account application form is filled in. Personal, residential and employment details and a
specimen signature must be provided. The Criminal Justice Act 1994 requires proof of identity and proof
of address.
Businesses must complete an application form and provide a copy of the Memorandum of Association
and the Articles of Association, a signed agreement of the directors and the names and signatures of
those who are authorised to sign cheques.

Operating a current account


Lodging money
To lodge money, a lodgement form and counterfoil must be completed. The teller checks that the actual
amount being lodged corresponds with the amount that has been filled in and then stamps the form and
counterfoil. The counterfoil is handed back to the customer.
Customers can also lodge money using an ATM, a Credit Transfer (CT) or Paypath.
Withdrawing money
To withdraw money, a withdrawal form and counterfoil are filled in. The teller checks the signature,
verifies there are sufficient funds to cover the withdrawal and stamps this form. The customer receives
the counterfoil.
Withdrawals can also be made by writing a cheque, using an ATM card, by direct debit (DD) or by
standing order (SO).
Writing cheques

A cheque is a written instruction by an account holder to the bank, to pay a stated sum of money to a
named person.
The layout of cheques vary from bank to bank, but the date, payee, amount, drawer, drawee, cheque
number, bank sort code and account number are included.
There are three parties to a cheque:

Payee - the person that the cheque is made out to

A post-dated cheque is one dated for some time in the near future. It cannot be cashed until
that date onwards.
An antedated cheque is dated for some time in the past but cannot be six months prior to the
present date, otherwise it is a stale cheque.
A blank cheque is signed by the drawer but is missing some relevant information.

Drawer - the account holder who issues and signs the cheque
Drawee - the bank on the cheque

An endorsed cheque can be passed on to another person or business if the payee signs
his/her name on the back of the cheque.
A bounced cheque is one that cannot be cashed due to insufficient funds in the drawer's
account.
Crossed cheques must be lodged to a bank account. Drawing two parallel lines across the
cheque indicates a general crossing. To make the crossing as safe as possible the words
account payee only should be written between the parallel lines.

Cheque Card
Account holders use it as proof of identity, and as a guarantee the bank will honour the cheque. When a
person accepts a cheque, the signature on the cheque should be compared with the one on the card. It
should be an up-to-date card and the card number should be written on the back of the cheque.

Bank Statements
An account holder should keep a record of all their transactions in a simple cashbook. If the balance at
the beginning or the balance brought down is on the debit (DR) side, the account holder has money in
the bank. If it is on the credit (CR) side then it is overdrawn by that amount. The DR side shows all the
money lodged and the CR side shows all the money withdrawn from the account.
A current account holder should receive a bank statement from their bank on a regular basis. This shows
all the transactions from the bank's point of view. It includes a running balance.

iv) The Bank has statutory obligation to deduct tax at source if the total interest paid / payable on all term
deposits held by a person exceeds the amount specified under the Income Tax Act. The Bank will issue a tax
deduction certificate (TDS Certificate) for the amount of tax deducted. The depositor, if entitled to exemption from
TDS can submit declaration in the prescribed format at the beginning of every financial year.
MINORS' ACCOUNTS

i) The minor can open Savings Bank Account and the same can be operated by the natural guardian or by minor
himself / herself, if he/she is above the age of 10 years. The account can also be opened jointly.
ii) On attaining majority, the erstwhile minor should confirm the balance in his/her account and if the account is
operated by the natural guardian / guardian, fresh specimen signature of erstwhile minor duly verified by the
natural guardian would be obtained and kept on record for all operational purposes.
ACCOUNT OF ILLITERATE / BLIND PERSON
The Bank may at its discretion open deposit accounts other than Current Accounts of illiterate person. The
account of such person may be opened provided he/she calls on the Bank personally along with a witness who is
known to both the depositor and the Bank. Normally, no cheque book facility is provided for such Savings Bank
Account. At the time of withdrawal/ repayment of deposit amount and/or interest, the account holder should affix
his / her thumb impression or mark in the presence of the authorized officer who should verify the identity of the
person. The Bank will explain the need for proper care and safe keeping of the passbook etc. given to the account
holder. The Bank official shall explain the terms and conditions governing the account to the illiterate / blind
person.

ADDITION OR DELETION OF THE NAME/S OF JOINT ACCOUNT HOLDERS


The bank may at the request of all the joint account holders allow addition or deletion of name/s of joint account
holder/s if the circumstances so warrant or allow an individual depositor to add the name of another person as a
joint account holder.

CUSTOMER INFORMATION
The customer information collected from the customers shall not be used for cross selling of services or products
by the Bank, their subsidiaries and affiliates. If the Bank proposes to use such information, it should be strictly
with the consent of the accountholder.

SECRECY OF CUSTOMER'S ACCOUNTS


The Bank shall not disclose details / particulars of the customer's account to a third person or party without the
expressed or implied consent from the customer. However, there are some exceptions, viz. disclosure of
information under compulsion of law, where there is a duty to public to disclose and where interest of the Bank
requires disclosure.

PREMATURE WITHRAWAL OF TERM DEPOSIT


The Bank on request from the depositor, at its discretion may allow withdrawal of term deposit before completion
of the period of the deposit agreed upon at the time of placing the deposit. The Bank shall declare their penal
interest rates policy for premature withdrawal of term deposit. The Bank shall make depositors aware of the
applicable rate along with the deposit rate.
PREMATURE RENEWAL OF TERM DEPOSIT
Incase the depositor desires to renew the deposit by seeking premature closure of an existing term deposit
account, the bank will permit the renewal at the applicable rate on the date of renewal, provided the deposit is
renewed for a period longer than the balance period of the original deposit. While prematurely closing a deposit
for the purpose of renewal, interest on the deposit for the period it has remained with the bank will be paid at the
rate applicable to the period for which the deposit remained with the bank and not at the contracted rate.
RENEWAL OF OVERDUE TERM DEPOSITS
i) When a term deposit is renewed on maturity, on renewed deposit interest rate for the period specified by the
depositor as applicable on the date of maturity would be applied. If request for renewal is received after the date
of maturity, such overdue deposits will be renewed with effect from the date of maturity at interest rate
applicable as on the due date, provided such request is received within 14 days from the date of maturity. In
respect of overdue deposits renewed after 14 days from the date of maturity, interest for the overdue period will
be paid at the rates decided by the Bank from time to time. .

ADVANCES AGAINST DEPOSITS


The Bank may consider request of the depositor/s for loan / overdraft facility against term deposits duly
discharged by the depositor/s on execution of necessary security documents. The Bank may also consider loan
against deposit standing in the name of minor, however, a suitable declaration stating that loan is for the benefit
of the minor, is to be furnished by the depositor - applicant.
SETTLEMENT OF DUES IN DECEASED DEPOSIT ACCOUNT

i) If the depositor has registered nomination with the Bank; - the balance outstanding in the account of the
deceased depositor will be transferred to the account of / paid to the nominee after the Bank satisfies about the
identity of the nominee, etc.
ii) The above procedure will be followed even in respect of a joint account where nomination is registered with the
Bank.
iii) In a joint deposit account, when one of the joint account holders dies, the Bank is required to make payment
jointly to the legal heirs of the deceased person and the surviving depositor(s). However, if the joint account
holders had given mandate for disposal of the balance in the account in the forms such as "either or survivor,
former / latter or survivor, anyone of survivors or survivor; etc., the payment will be made as per the mandate to
avoid delays in production of legal papers by the heirs of the deceased.
iv) In the absence of nomination and when there are no disputes among the claimants, the Bank will pay the
amount outstanding in the account of deceased person against joint application and indemnity by all legal heirs or
the person mandated by the legal heirs to receive the payment on their behalf without insisting on legal
documents up to the limit approved by the bank's board. This is to ensure that the common depositors are not put
hardship on account of delays in completing legal formalities

INTEREST PAYABLE ON TERM DEPOSIT IN DECEASED ACCOUNT


i) In the event of death of the depositor before the date of maturity of deposit and amount of the deposit is
claimed after the date of maturity, the Bank shall pay interest at the contracted rate till the date of maturity. From
the date of maturity to the date of payment, the Bank shall pay simple interest at the applicable rate obtaining on
the date of maturity, for the period for which the deposit remained with the Bank beyond the date of maturity; as
per the Bank's policy in this regard.
ii) However, in the case of death of the depositor after the date of maturity of the deposit, the bank shall pay
interest at savings deposit rate obtaining on the date of maturity from the date of maturity till the date of
payment.
Insurance Cover for Deposits
All bank deposits are covered under the insurance scheme offered by Deposit Insurance and Credit Guarantee
Corporation of India (DICGC) subject to certain limits and conditions. The details of the insurance cover in force,
will be made available to the depositor.
Stop Payment Facility
The Bank will accept stop payment instruction from the depositors in respect of cheques issued by them. Charges,
as specified, will be recovered.

Dormant Accounts
Accounts which are not operated for a considerable period of time will be transferred to a separate dormant /
inoperative account status in the interest of the depositor as well as the Bank. The depositor will be informed of
charges, if any, which the Bank will levy on dormant / inoperative accounts. The depositor can request the Bank to
activate the account for operating it.
Safe Deposit Lockers
This facility is not offered through all bank branches and wherever the facility is offered, allotment of safe deposit
vault will be subject to availability and compliance with other terms and conditions attached to the service. Safe
deposit lockers may be hired by an individual ( being not a minor) singly or jointly with another individual(s),
HUFs, firms, limited companies, associates,societies, trusts etc. Nomination facility is available to individual(s)
holding the lockers singly or jointly. In respect of lockers held in joint names, up to two nominees can be

appointed. Joint locker holders can give mandate for access to the lockers in the event of death of one of the
holders on the lines similar to those for deposit accounts. In the absence of nomination or mandate for disposal of
contents of lockers, with a view to avoid hardship to common persons, the bank will release the contents of locker
to the legal heirs against indemnity on the lines as applicable to deposit accounts
Redressal of complaints and grievances
Depositors having any complaint / grievance with regard to services rendered by the Bank has a right to approach
authority(ies) designated by the Bank for handling customer complaint / grievances. The details of the internal set
up for redressal of complaints / grievances will be displayed in the branch premises. The branch officials shall
provide all required information regarding procedure for lodging the complaint. In case the depositor does not get
response from the Bank within 60 days from date of complaint or he is not satisfied with the response received
from the Bank, he has a right to approach Banking Ombudsman appointed by the Reserve Bank of India.

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