DEPOSIT AND MISCELLANEOUS SERVICES

Since the last several years there has been a sea change in the services of the Bank. The technological revolution in the Banking industry has ushered in innovative Banking culminating in a host of services available to the public. With the advent of computerisation in Banks the services have become quicker and convenient to the customer. A customer can bank from anywhere at anytime. The facility of online transfer of funds, account information and remittances from abroad have become fast and convenient. With the core banking facilities, Branches of Banks are interconnected for all Banking transactions. In some Banks cheques drawn on one Branch is payable at par at all the branches which are connected. On line facility can also be used for payment of utility bills and taxes. The Banks have introduced online trading in shares and Online booking for Railway / Indian Airlines. ATM (All Time Money) net worth provides round the clock service. The ATM facility provides the customer to withdraw cash from his account through vending machine provided in the ATM centre. The customer is saved of the botheration of going to the Bank and waiting for his payment. Further this facility can be availed on all holidays.
Banks have tied up with Life Insurance Corp of India and General Insurance company for making available their entire Insurance product range. They also offer Mutual Fund product of LIC, Reliance, DSP and other reputed companies. To facilitate their NRI clients and investors they have marketed their Depository services by opening their specialised branch in association with National securities depositors Ltd. Banks not only assist corporate in their business but also help the common man realise his dream. It has made its presence felt in rural India besides reaching out across the globe.
Safety of your hard earned money is the prime concern of the Banks. To this end Banks have various deposit schemes like Term Deposits, Savings Banking, Current Account etc. The nomenclature of deposits classified under Term Deposits vary from Bank to Bank. The deposits classified under Term deposits are Fixed Deposit, quarterly Income Certificate, Monthly Income Certificate, Kamadhenu Deposits . Double Benefit Deposits etc. Term Deposit is a fixed amount deposited by a customer for a fixed period and is payable on maturity of deposit. The interest payable on the term deposit varies from monthly, quarterly, annually and on due date of the deposit. In the case of interest payable on maturity of deposit the depositor gets the benefit of compounded interest The eligibility criteria for. Term Deposits are as follows.
A Term Deposit can be opened by an Individual in his / her name or jointly with his / her spouse or with anybody. The maximum number of persons in a joint account will be four and the deposit is repayable to all of them jointly or to anyone or more of them or survivors or the first named depositor or survivors. In the case of a minor only the guardian can operate the account until the minor is 12 years of age. Thereafter the minor can operate his / her account if the Bank opines that the minor understands the operation of the account. Deposit accounts can also be opened in the name of Hindu undivided family, Trusts, Company clubs, Association, Institutions parternership firm and societies. The deposit account will be opened in the Banks standard form and submitted to the Bank duly completed in all respects. The account should be introduced by an account holder having a satisfactorily conducted account for a minimum period of one year. Two recent passport size photograph of the depositor should be submitted along with the account opening form. The depositor should also submit his Permanent Account Number (PAN) or general Index number (GIR) In the alternate a declaration in form number 60 or 61 as per IT Act (Sec 139 A) will suffice. The following documents have to be submitted as identity and address proof.
a) Passport
b) PAN card
c) Driving License
d) Employee identity card with address
e) Telephone / Electricity bills
f) Consumer gas connection book
The minimum deposit amount should be Rs.1000/- for the original deposit made by the depositor. This criteria however varies from Bank to Bank. The rate of interest is determined on the amount of the deposit and the prevailing rate at the time of opening the deposit account / renewal of the deposit. As the Bank accepts the deposit on a contract basis any change in interest rate in the interviewing period will not be applicable to the deposit. In terms of IT Act Tax (TDS) will be deducted at source if the interest paid on the deposit is more than Rs.10,000/- per annum. In case the depositor does not want the tax to be deducted he has to submit Form 14H/E as per I.T. Act. The maximum period of deposit will be 10 years.
The Term deposit receipt will depict the name of the depositor, ID number, the name of the Branch of the Bank, amount and date of deposit, due date, the rate of interest and the interest amount. The receipt will be signed by an authorised official of the Bank with his code number. Repayment instruction will also be indicated in the Deposit Receipt. Overdue interest may be paid by the Bank if the deposit is renewed from the date of maturity. The interest for renewed deposit will be the rate applicable to the renewed period as prevailing on maturity date or date of renewal whichever is minimum. Repayment of matured deposit will be by credit to the depositors savings / current account or by cash. The maximum amount of cash payable is less than Rs.20,000/- as per IT Act 1961. The depositor can avail loan against his term deposit. In such an event the depositor surrenders his deposit receipt to the Bank. The Bank will have a lien on the deposit until the loan is repaid. The maximum amount of loan against the term deposit is 75% of the deposit amount though the Banks have discretion to grant loan upto 90% of the deposit. The interest payable on the loan will be 2% above the deposit rate. The depositor can also avail loan against his deposit from any branch of the Bank. Transfer of deposit is permissible from branch to branch of the Bank in different places. Banks also provide transfer of funds from the customers account to the beneficiaries account with branches of other Banks. The remitted amount gets credited to the beneficiaries account within a maximum of 2 hours from the time the message gets transmitted from the customers bank. Nomination facility is available for all types of deposit Nomination can be effected by the depositor at the time of opening the account or on any subsequent day. It may be noted that if the beneficiary of the depositor's 'WILL' is different from the nominee of his deposit bequeath of deposit made to the beneficiary of the 'WILL' will prevail over the nominee. Some Banks have Auto Renewal Deposit. In this scheme the period of deposit varies from 15 days to 45 days. The deposit is automatically renewed for 12 times. The deposit earns simple interest. The period of Automatic renewal of deposit varies from Bank to Bank.
Recurring Deposit can be opened for a minimum period of 6 months and maximum period of 120 months with a minimum amount of Rs.100/- per month. In a Recurring Deposit account a fixed amount is deposited every month for over a period of time. Interest is compounded quarterly. There is also Tax savings term deposit which is a replica of Recurring deposit. However there is a lock in period of 5 years which means the depositor cannot withdraw his deposits until the completion of the deposit period. Tax will be deducted at source on the amount of interest paid as per I.T. Act from time to time and the deposit is eligible for tax benefits under Section 80 (C) of IT Act. In the case of Recurring deposit loan may be availed against the deposit but in the case of Tax Savings Term Deposit no loan will be granted by the Bank. Banks have special Recurring deposit scheme for Corporate, Government Undertakings and Institutions. The minimum amount to be deposited in the account every month is Rs.10,000/- and the minimum period of deposit is 5 years. The maximum period of deposit is 20 years.
The other types of deposits are Savings Bank, Current Account etc. Besides the regular Savings Bank Account Banks also have "No frills Savings Bank Account" with zero balance facility. It can be opened by an individual including minors above 10 years of age. The account can be opened without any initial deposit. The account is meant for Pensioners, labourers, employees of unorganised sector, students and self employed persons. The rate of interest is the same as applicable to normal Savings account.
Facilities offered for the account are
a) Cheque Book Facility
b) Maximum 10 withdrawals per year.
c) Collection of outstation cheques.
d) Remittance facility.
e) Nomination facility
Photographs, identity proof and age proof is required. The depositor has to declare that the balance in the account with not exceed Rs.50,000/- and the total credit in all the accounts will not exceed Rs.1 lac in a year.
The term deposit maintained with a bank for 5 years is eligible for income Tax exemption for that financial year only. The maximum amount of deposit is Rs. 1 lac. The depositor cannot avail loan against the deposit. Before availing this facility the depositor should specifically inform the bank that the deposit is made to avail tax exemption.