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Customer Rights - Deposit policy 2017-18

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 stake holders of the Banking System. The depositors and their interest 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 recognizes 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, 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 the document will impart greater transparency in dealing with individual customers and create awareness among customers of their rights. The ultimate objective is that customer will get services what they are rightfully entitled to receive without any demand.

While adopting the policy, the bank reiterates its commitments to individual customers outlined in Banking Codes and Standards Board of India (BCSBI). 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. The Bank’s website will display the Banks various deposit schemes and be updated from time to time

‘Know Your Customer’ (KYC) Guidelines

1.Know Your Customer [KYC] is the platform on which Banking system operates to avoid the pitfalls of operational, legal and reputational risks and consequential losses by scrupulously adhering to the various procedures laid down for opening and conduct of account. The Bank shall adopt appropriate Know Your Customer Policies, procedures and internal controls reasonably designed to:

       i.          Determine and document the true identity and address of the customers who establish relationships, open accounts or conduct significant business transactions and obtain basic background information on customers.

      ii.          Obtain and document any additional customer information, commensurate with assessment of the money laundering risks posed by customers expected use of Bank’s products and services.

    iii.          Avoid doing business with any individual or entity whose identity cannot be determined or who refuses to provide information or who have provided information that contains significant inconsistencies which cannot be resolved after due investigation.

2. The regulatory guidelines require Bank to categorize customers based on risk perception and prepare profiles of customers for the purpose of transaction monitoring. 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 and the final decision will be conveyed at the earliest.

3.Any person fulfilling account opening requirements may, upon agreeing to comply with the prescribed rules, as mentioned hereunder, open an account, provided she/ he furnishes proof of identity and proof of address as required by the Bank. However, customers may submit only one documentary proof of address (either current or permanent) while opening a bank account or while undergoing periodic updation. In case the address mentioned as per ‘proof of address’ undergoes a change, fresh proof of address may be submitted to the branch within a period of six months.

4. The applicant will need to furnish proof of identity and proof of address by way of the following:

a. Proof of identity (any of the following with authenticated photographs thereon):

       i.          Passport

      ii.          Voter ID card

    iii.          PAN Card

    iv.          Job Card issued by NREGA duly signed by an Officer of the State Government.

     v.          The Letter issued by the Unique Identification Authority of India (UIDAI) containing details of name, address and Aadhaar Number.

    vi.          Driving License

 

It is implied that he proof of address also follows from the following documents only if the address furnished by the customer in the account opening form is same as the address in the ID proof

i.          Passport

ii.          Voter ID Card

iii.          PAN Card

iv.          Job Card issued by NREGA

v.          Driving License

vi.          The letter issued by the Unique Identification Authority of India (UIDAI) containing details of name, address and Aadhaar Number.

 

In respect of low risk category of customers, where simplified measures are applied, it would be sufficient to obtain any of the following documents

 i.          Identity Card with applicant’s Photograph issued by Central/State Government Departments, statutory/regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions.

ii.          Letter issued by a Gazetted Officer with a duly attested photograph of the person.

b. Proof of current address (any of the following)

i.          Credit Card Statement

ii.          Salary slip

iii.          Income/Wealth Tax returns.

iv.          Telephone Bill

v.          Tax Assessment Order

vi.          Electricity Bill

vii.          Bank account statement

viii.          Letter from reputed employer

ix.          Letter from any recognized public authority.

x.          Voter ID card (only if it contains the current address).

xi.          Pension Payment Orders issued to the retired employees by Central/State Government Departments, Public Sector Undertakings, if it contains current address.

xii.          Copies of Registered lease & license agreement/Sale Deed/Lease Agreement may be accepted as proof of address.

xiii.          Certificate issued by hostel and also, proof of residence incorporating local address, as well as permanent address issued by respective hostel warden of aforesaid University/institute where the student resides, duly countersigned by the Registrar/Principal/Dean of Student Welfare. Such accounts should be closed on completion of education/ leaving the University/ Institute.

  1. For students residing with relatives, address proof of relatives along with their identity proof, can also be accepted provided declaration is given by the relative that the student is related to him and is staying with him.

 

Types of Deposit Accounts

Bank offers various deposit products, which can be broadly categorized into the following types of deposit schemes:

a. Demand Deposits means deposit received by the Bank, which is withdrawable on demand. Different types of demand deposits are:

  • “Savings deposits” means a form of demand deposit which is subject to restrictions as to the number of withdrawals as also the amount of withdrawals permitted by the bank during any specified period. Savings Bank accounts can be opened by eligible person(s) and certain organizations/agencies as approved by Reserve Bank of India/Govt. of India from time to time. Bank is committed to providing basic banking services to the disadvantaged section of the society through Basic Savings Bank Account.
  • Current Account” means a form of demand deposit where from withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount.
  • “Term deposit” means a deposit received by the bank for a fixed period withdrawable normally after the expiry of the fixed period and includes deposits such as Recurring / Term Deposit/Special Term Deposit and its variants.

Account Opening and Operation of Deposit Accounts

  1. The Bank before opening any deposit account will carry out due diligence as required under ‘Know Your Customer’ (KYC) guidelines issued by RBI Anti Money Laundering rules and regulation and/ or such other norms or procedures adopted by the Bank. While Branch Managers are authorized to take a decision with regard to opening an account, 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/ her and the final decision of the Bank will be conveyed at the earliest to him/ her.
  2. 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. The Bank official opening the account would explain the procedural formalities and provide necessary clarification sought by the prospective depositor when he/ she approaches for opening a deposit account.
  3. The regulatory guidelines require banks to categorize customers based on risk perception and prepare profiles of customers for the purpose of transaction monitoring. Inability or unwillingness of a prospective customer to provide necessary information/ details could result in the Bank not opening an account.
  4. Inability of an existing customer to furnish details required by the Bank to fulfill statutory obligations could also result in closure of the account after due notice provided to the customer.
  5. For deposit products like Fixed Deposits, Savings Bank Account and Current Deposit Account, the Bank may stipulate certain minimum balance 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 Savings 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 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. However, amount in withdrawal form and cheques for cash withdrawal should be in round rupees.
  6. Savings Bank Accounts can be opened for eligible person/ persons and certain organizations/ agencies (as advised by Reserve Bank of India from time to time).
    Current Accounts can be opened by individuals/ partnership firms/ Private and Public Limited Companies/ HUFs/ Specified Associates/ Societies/ Trusts/ Departments of Authority created by Government (Central or State)/ Limited Liability Partnership etc. Term Deposit Accounts can be opened by individuals/ partnership firms/ Private and Public Limited Companies/ HUFs/ Specified Associates/ Societies/ Trusts/ Departments of Authority created by Government (Central or State)/ Limited Liability Partnership etc.
  7. 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 recent photograph of the person/s opening/ operating the account is also part of due diligence process. Under the latest KYC norms, introduction of the prospective depositor from a person acceptable to the Bank is necessary for accounts opened under the liberalized KYC norms.
  8. In addition to the due diligence requirements under KYC norms the Bank is required by law to obtain Permanent Accounts Number (PAN) or alternatively, declaration in Form No. 60 or 61 as specified under the Income Tax Act/Rules.
  9. Deposit accounts can be opened by an individual in his/ her own name (status: account in single name) or by more than one individual in their own names (status: Joint Account). Savings Bank account can also be opened by a minor jointly with natural guardian or with mother as the guardian (Status: Minor’s Account). Mothers as guardians will be only for operation of the account on behalf of minors. Minors above the age of 10 will also be allowed to open and operate Savings Bank account independently.
  10. At the request of the depositor, the bank will register mandate/power of attorney given by him / her authorizing another person to operate the account on his / her behalf.

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/ guardian only.

i.The joint account holders can give any of the following mandates for the disposal of balance in the above accounts:

  1. Either of us or Survivor: If the account is held by two individuals say,
    A & B, the final balance along with interest, on maturity, will be paid to survivor on death of anyone of the account holders.
  2. Any one of us or Survivor(s): If the account is held by more than two individuals say, A, B and C, the final balance along with interest, if applicable, will be paid to any one of the joint account holders or to the survivor(s) on death of any account holders.
  3. Former or Survivor: If the account is held by two individuals say, A & B, the final balance along with interest, if applicable, will be paid to A on death of B. Similarly, in case of death of A it will be paid to B.
  4. Latter or Survivor: If the account is held by two individuals say, A & B, the final balance along with interest, if applicable, will be paid to B on death of A. Similarly, in case of death of A it will be paid to B.

 ii.The above mandate for opening joint accounts/ disposal of balances become operational from the date deposit account is opened. This mandate can be modified by the consent of all the account holders.

iii.At the request of the depositor, the Bank will register mandate/ power of attorney given by him/ her authorizing another person to operate the account on his behalf.

iv.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. If no mandate is received till the date of maturity, deposit will be treated as an auto renewal deposit and shall be renewed for the same period as the period of original deposit.

v.Nomination facility is available on all deposit accounts opened by the individuals including any form of joint account (including “Either or Survivor”). Nomination is also available to a sole proprietary 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) at any time. While making nomination, cancellation or change thereof by illiterate and blind persons, their thumb impression(s) are required to be attested by two witnesses. Nomination can be made in favour of a minor also (in which case a major person should also be named to receive the amount on behalf of minor). Printing of name of nominee is available in the Passbook/ Term Deposit Receipts if a customer opts for it. In the case of joint accounts, the nominee’s right arises only after the death of all the depositors.

vi.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.

vii.Every current deposit account holder will be supplied from time to time with a statement of his account with the bank. This will be done either in the form of a passbook, which is required to be sent to the bank for updating at regular intervals or a statement of account to be issued at monthly intervals. A statement of account for a shorter periodicity can also be furnished to the account holder for which appropriate service charges will be levied by the bank.

viii.Every savings bank account holder will be supplied with a passbook and/or a statement of account. In case of a passbook issued to the savings bank account holder, the account holder will have to send it to the bank for updating it at regular intervals.

ix.Cash, cheques, drafts, dividend and interest warrants, bills and other negotiable instruments are accepted for collection and credit to current deposit and savings bank account. All deposits made by the depositor will be accompanied by pay-in-slip prescribed by the bank. The deposits made at the counter shall be acknowledged by means of “Received” stamp of the bank under the full signature of an official of the Bank.

x.The deposit accounts may be transferred to any other branch of the Bank at the request of the depositor.

 

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 joint account holder.

Interest Payments

       i.          Interest shall be paid on Saving Bank account on daily product basis at the rate specified by Reserve Bank of India directive from time to time at half yearly intervals (at the end of February and August). 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 fixed deposit scheme, the interest shall be calculated at quarterly intervals and paid to the customer as per their request at Quarterly/ Half-Yearly/ Yearly intervals. Monthly interest can also be considered at discounted value. The interest on term deposits is calculated by the Bank on domestic term deposits repayable in less than three months or where the terminal quarter is incomplete interest shall be paid proportionately for the actual number of days reckoning the year at 365 days.

    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. These will also be displayed in the Bank’s website.

    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. The declaration filed in Form 15G and 15H u/s 197A shall not be valid unless the person filing the declaration furnishes his PAN in such declaration. In case of failure to do the same, tax is deducted at the rate mentioned in the relevant provisions of the IT Act or at the rate in force or at the rate of 20%, whichever is higher.

Premature renewal of Term Deposit

In case 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. 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.

Premature withdrawal of Term Deposit

“In case of premature closure of Time Deposits without renewing them for a period longer than the remaining period of the deposit, a penalty of 1% will be levied on the interest rate for the contracted period / the interest rate for the period for which the deposit has remained with the bank (prevailing at the time of issuance) whichever is less. This will be applicable to all Time Deposits of all amounts. In case of premature closure of Time Deposits for renewal for a period more than the remaining period of the deposit, no penalty for premature closure will be levied”.

Changes on penalty, if any, will be displayed in the Bank’s website.

Renewal of overdue Term Deposit

If for any reason Term Deposit could not be renewed and request for renewal is received after the date of maturity such overdue deposit will be renewed with effect from date of maturity of interest rate applicable as on the due date.
In CBS environment, all the deposits will be renewed for the period originally opened at the rate applicable at the time of renewal in the  absence of  any  instruction  for  disposal  of matured proceeds of the deposit.

 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 sought is for the benefit of the minor is to be furnished by the depositor/ applicant.

Minors’ Accounts

A minor can open Savings Bank Account/Fixed Deposits/Recurring Deposits and the same can be operated by the natural guardian (mother can also be treated as natural guardian whenever requests are received by them). The account can also be opened jointly with guardian. However, no overdrafts will be granted to these minors.

A minor can open Saving Bank Account by minor himself/ herself, if he/ she is above the age of 10 years and can sign uniformly. The account can also be opened jointly with guardian. However, no overdrafts will be granted to these minors.

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/ guardian would be obtained and kept on record for all operational purposes.

Facilities to Senior Citizens

Under our Deposit Scheme for senior citizens, all depositors who have completed the age of 60 years are offered additional rate of interest over the normal rate for all the deposits of one year and above. Presently the premium is 50 basis points above the normal rate. Changes, if any, with regard to the rate of interest/ scheme shall be communicated well in time and shall also be displayed on our website.

 Non Resident Indians’ Deposit Schemes

i.Non Resident External Accounts:

  1. Minimum period of NRE fixed deposit is one year and maximum period is 10 years. There is no stipulation on minimum/ maximum deposit amount. Guidelines related to premature closure and renewal of NRE deposit will also be applicable in case of extension of deposit.
  2. Renewal of overdue NRE Fixed Deposit : In case of overdue NRE fixed deposits, if renewed [partly or wholly] within 14 days [both days included] from the date of maturity, then the rate of interest payable on the amount so renewed will be the rate as on the date of maturity. The renewal should be for a further period of one year or more from the date of renewal.
  3. NRE Fixed Deposit shall be automatically renewed by the Bank on due date for an identical period at the applicable rate of interest ruling on the date of maturity based on the mandate of the depositor in the original application form, unless instruction to the contrary is received from the depositor by the Bank. The renewal will be in accordance with the provisions of the relevant RBI scheme in force at the time of renewal. The depositor should continue to be non-resident at the time of renewal deposit.
  4. Premature withdrawal of NRO & NRE fixed deposits: No penalty will be charged for premature closure of NRO fixed any time after 12 months of its opening/renewal irrespective of the amount up to Rs.5.00 lac or equal of USD 10000. However, NRE deposit is to be closed before maturity before completion of one year from the effective date of deposit, no interest shall be payable on such premature closure.
  5. Joint Account Holding: NRI can open joint account with a resident close relative (relative as defined in Section 6 of the Companies Act, 1956) on former or survivor basis. The resident close relative will be eligible to operate the account as a Power of Attorney holder in accordance with extant instructions during the life time of the NRI/ PIO account holder.

 ii.Non Resident Ordinary Deposit (NRO Deposit):

  1. NRO accounts may be opened / maintained in the form of current, savings, recurring or fixed deposit accounts. Account should be denominated in Indian Rupees.
  2. Savings Account – Normally maintained for crediting legitimate dues /earnings / income such as dividends, interest etc. Banks are free to determine the interest rates.
  3. Term Deposits – Banks are free to determine the interest rates. Interest rates offered by banks on NRO deposits cannot be higher than those offered by them on comparable domestic rupee deposits. The Bank is offering the same what the Bank offers to its domestic depositors. No penalty will be charged for premature closure of NRO fixed any time after 12 months of its opening/renewal irrespective of the amount up to Rs.5.00 lac or equal of USD 10000. However, NRE deposit is to be closed before maturity before completion of one year from the effective date of deposit, no interest shall be payable on such premature closure.

 b.Permissible credits to NRO account are transfers from rupee accounts of non-resident banks, remittances received in permitted currency from outside India through normal banking channels, permitted currency tendered by account holder during his temporary visit to India, legitimate dues in India of the account holder like current income like rent, dividend, pension, interest, etc., sale proceeds of assets including immovable property acquired out of rupee/foreign currency funds or by way of legacy/ inheritance

c.Tax /Repatriation: NRO accounts including savings bank deposits attract tax deduction at source (TDS) on the Interest earned. Current TDS rates applicable are 30% plus Surcharge. Customers residing in specified countries will have the option of availing TDS at a lower rate on their NRO Deposits under the DTAA (Double Taxation Avoidance Agreement) subject to submission of documents as requested by the Bank including PAN details. The interest earned on NRO deposits, post TDS is repatriable. The principal amount was earlier strictly not repatriable. However as per the subsequent amendments to (Foreign Exchange Management Act) FEMA guidelines, NRO account funds can be repatriated up to a limit of USD 1,000,000 equivalent per annum, subject to document requirements.

d.Joint Account Holding – Deposits can be held jointly with a resident Indian and or with non-resident Indian.

Account of Illiterate person

An illiterate person may open an ordinary Savings Bank account in his sole name or jointly with other person(s). 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 keep of the passbook given to the account holder. The Bank official would explain the terms and conditions governing the account to the illiterate person.

Accounts of Physically Impaired Person

A physically impaired person may open an ordinary Savings Bank account in his sole name or jointly with other person(s). The Bank may, at its discretion, open deposit accounts other than Current Accounts. 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. Guardianship certificate issued either by the District Court under Mental Health Act, 1987 or by the Local Level Committee under the National Trust for the welfare of persons with Autism, Cerebral Palsy, Mental retardation and Multiple Disabilities Act, 1999 is required for the purpose of opening/ operating accounts.

Accounts of Visually Impaired person «

A visually impaired person may open an ordinary Savings Bank account in his sole name or jointly with other person(s). The Bank may, at its discretion, open deposit accounts other than Current Accounts of visually impaired 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. Visually impaired persons can open cheque book operated accounts after fulfilling the requirement of the Bank.

Customer Information

The Bank values the information provided by the customer at the time of opening the account. The Bank will not use this information for cross selling of services or products by the Bank without the customer’s knowledge.

Secrecy of Customer’s Account

The Bank would 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.

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.

      ii.          The above procedure will be followed even in respect of joint accounts where nomination is registered with the Bank. In case of joint accounts, the nominee’s right arises only after the death of all the depositors.

    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.

    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 depositors are not put to hardship on account of delays in completing legal formalities.

     v.          Bank may call for succession certificates from the legal heirs of deceased depositors in the following cases:

  1. Where there are disputes and all the legal heirs do not join in indemnifying the Bank and
  2. In certain other exceptional cases where the Bank has a reasonable doubt about the genuiness of the claimant(s) being the only legal heir(s) of the depositor.

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 rate applicable 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 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 either by way of a notice or by displaying on the Banks website.

Intra-bank portability of deposit accounts

If the customer so desires with a request letter to the home branch, any deposit account of the customer will be transferred freely from one branch to another branch of the bank without any cost. In core banking solution, each customer has unique account number and it remains unchanged on transfer of the account from one branch to another branch of the Bank.

Stop Payment Facility

The Bank will accept stop payment instruction from the depositors in respect of cheques issued by them. The acceptance will be in cases where the Cheque in question has not been paid by the Bank. Charges, as specified, will be recovered.

Stale or post dated cheques

Bank will be receiving cheques drawn on current deposits and savings bank account for payment. Before making the payment, the bank will ensure that the cheque is neither stale i.e. more than 3 months old, nor post dated i.e. bearing a future date.

Dormant/ Inoperative Accounts

       i.          Accounts which are not operated for a period of two years 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 after completing certain formalities.

      ii.          At present Savings Bank and Current accounts are treated as ‘inoperative’ if there are no debit as well as credit transactions induced at the instance of customers in the account for a period of over two years and one year respectively. “Dormant” accounts are those accounts where there are no debit as well as credit transactions induced at the instance of customers in the account for a period of over one year in Savings Bank account and six months in Current account. Customer mandated transactions are treated as customer induced transactions and the accounts are treated as operative.

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 complaints/ grievances. The details of the process set in place are as under:

       i.          A complaint register is available at branches which would make it possible for the customers to enter their complaints.

      ii.          A system of acknowledging the complaints is available, where the complaints are received through letters/ forms.

    iii.          Fixed a “time frame” for resolving the complaints received at different levels.

    iv.          The names of the officials who can be contacted for redressal of complaints, together with their direct telephone number, fax number, complete address and e-mail address etc. for proper and timely contact by the customers and for enhancing the effectiveness of the redressal mechanism is prominently displayed at the branches.

     v.          In case the depositor does not get response from the bank within 30 days from the date of complaint or he/ she is not satisfied with the response received from the Bank, he/ she has a right to approach Banking Ombudsman appointed by the Reserve Bank of India.

 

Service Charges

The Bank will levy Service Charges as approved by Bank’s Board. The applicable Service Charges will be displayed on the Bank’s website www.dgbhyd.com and a notice of one month will be given in case of upward revision in Service Charges.

Intimation to Customers on changes effected

       i.          The depositors will be informed of a change in the policy by either of the following:

      ii.          Advertisement in newspapers

    iii.          SMS to the customers, if mobile number is registered

    iv.          Display on the notice board at the branch

     v.          Display on Bank’s website at www.dgbhyd.com

    vi.          Intimation by means of a letter

  vii.          E-mail to customers, if an e-mail address is registered with the Bank.

 Bank's General Lien

Bank has the right to retain all the goods or any property (which is in its possession and includes credit balance in the deposit account) of the depositor until all the claims of holder i.e. Bank are satisfied. The right of lien is conferred to the Banker under Sec 171 of Indian Contract Act.