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Savings Bank Accounts Rules 1.


Savings Accounts are intended to mobilise the savings of the community.

Who Can Open 2.1 Savings accounts are opened at the discretion of the bank for persons on proper

introduction. 2.2 a) b) Accounts may be opened by a person in his/her own name; two persons or more than two persons in their joint names in anyone of the following

forms: Accounts in the name of A&B A&B A&B A, B & C Mode of operation Either or Survivor Jointly or Survivor Former or Survivor Anyone or Survivors or Survivor

(Instructions regarding operations on the account given at the time of opening a joint account can be varied only by the account holders jointly) 2.3 Savings account may also be opened by minors to be operated by themselves provided

they have completed the age of 14 and have powers of understanding and discretion. Minors should state their age and give their date of birth when opening the accounts. No cheque book will be issued for such accounts. 2.4 Minors' Account can also be opened by their natural guardians either jointly with the

minor or singly or by guardians appointed by a competent court. Only the guardians will be permitted to operate such accounts. The guardian should furnish the date of birth of the minor when the account is opened. When the minor attains majority, the right of the guardian to operate on the account will automatically cease and the erstwhile minor will be allowed to operate the account. The signature of the minor can be obtained on attainment of majority duly attested by the guardian or any other person to the satisfaction of the bank. 2.5 Illiterate persons/blind persons may also open savings accounts provided they are

properly introduced and other formalities for opening accounts of such persons are duly

observed. 2.6 Clubs, Societies or Associations, Schools, Temples, Mosques, Churches or other

religious and chartiable institutions of a like nature which are approved by the Bank may also open savings accounts. 2.7 The Bank does not recognise any Trust. This means that sums when deposited with the

bank for the credit of an account are, in the absence of any notice or circumstance putting the bank on notice, presumed to be the property of the depositor and any claim of any other party, subsequently, to right, title and interest in the said deposit shall not be recognised by the bank, and such a claimant could only look to the depositor for redressal. This rule does not preclude the opening of Trust Accounts so long as the fact of the trust is made clear and apparent at the time of opening such account. 2.8 Partnership, Hindu Joint Families, Proprietary concerns or Joint Stock Companies may open savings accounts for certain special purposes but not for conducting their usual business. However, the eligibility for interest is subject to directive of the Reserve Bank of India. 2.9 The bank reserves to itself the right to refuse to open any account without

assigning any reason.

3. 3.1

Specimen Signature At the time of opening of the account, every depositor is required to give the

specimen of his/her signature in duplicate for record, along with two copies of recent passport size photograph. 3.2 Whenever there is/are change(s) or variation(s) in the specimen signature, the

depositor is required to inform the bank in writing the changes/variations in the specimen signature and give a fresh Specimen Signature Card. 3.3 All withdrawal forms, cheques and letters to the Bank must be signed strictly in

accordance with such specimen.

4. 4.1

Minimum Balance The minimum balance for Savings Bank account is Rs. 500 for cheque operated

accounts and Rs. 250 for ordinary savings accounts in computerised, Metro and Urban branches and Rs. 100 for Semi-urban and Rural branches. 4.2 Where the balance in SB accounts falls below the stipulated minimum, a service charge

of Rs. 10 shall be levied on each occasion irrespective of the number of days for which the position continues. 4.3 In Inoperative SB account (with or without cheque facility) if there is no transaction

in the account during the year and where the balance is Rs. 100 or below, a service charge of Rs. 10 per year shall be levied. 4.4 If the balance in such account becomes nil, on account of debiting the service charge,

the account shall be closed. If the balance in the account is less than the service charge leviable, the balance available shall be appropriated to the income account and the account closed, under advice to the customer.


Minimum Deposit and Withdrawal

The minimum amount which can be withdrawn from or deposited into any savings account, shall be Rs.5/-

6. 6.1

Mode of Deposit Amounts received for the credit of a savings account should, ordinarily, be

accompanied by pay-in-slips with counterfoils, which will be supplied by the bank, free of charge, on request. 6.2 i) ii) iii) iv) v) 7. 7.1 Pay-in-slips should be made out separately for each of the following items: Cash; Cheques and other instruments drawn on the branch; Cheques and other instruments drawn on local branches of Indian Bank; Cheques drawn on outstation branches of Indian Bank or any other Bank and Cheques and other instruments drawn on local branches of other banks. Cheques and Dividend Warrants All cheques and other instruments tendered for credit should be crossed.

7.2 Cheques, Dividend Warrants and other instruments issued in favour of the account holder only will be accepted for collection/credit to the account. The bank will not be responsible for any loss that may occur by delay or otherwise in transmission or collection. 7.3 Cheques, drafts and other instruments accepted for collection/purchased / negotiated by

the bank will be forwarded for collection to the branches of the bank/another bank at the place at which the instruments are made payable, entirely at the risk and responsibility of the account

holder. The bank will be at liberty to make use of the services of any bank of its choice for collection and the bank so employed will be the agent for the account holder for the purpose of collection. 7.4 The bank or the agent at its option will send for collection the instruments at the sole

risk and responsibility of the account holder by ordinary or registered post at its discretion. The bank will not be responsible for any loss of the instrument in the course of such transmission. For collection and purchase of instruments appropriate charges and out of pocket expenses will be recovered. 7.5 The bank may accept from the agency bank, cash, payment instructions or

mandates in exchange of instruments sent for collection; such mandates or exchange instruments will be collected solely at the risk and responsibility of the account holder.

8. 8.1

Withdrawals Drawings from savings bank account will be by withdrawal forms or cheques supplied

by the bank. 8.2 Where a withdrawal is made by means of a withdrawal slip through a third party

authorised by the account holder, the account holder should sign his name on the reverse of the withdrawal from naming the authorised person to whom the payment is to be made and also authenticate the signature of the person receiving payment on his behalf. The authorisied person receiving the cash will affix his signature on the reverse of the withdrawal form. 8.3 Normally no money can be withdrawn from a savings account operated by with

drawal slips without the production of the passbook. 8.4 Withdrawal by cheques in cheque operated accounts may be made only on cheque

leaves supplied by the bank to the depositor. 8.5 The Bank reserves to itself the right to refuse the cheque facility without

assigning any reason.

9. 9.1

Deposits through Post Remittance for credit of accounts may be made through post. In such instances, the

name and account number to which the remittance relates must be furnished. 9.2 All cheques, drafts and other instruments sent by a customer by post must be

transmitted only by means of Registered Post failing which, the bank will be absolved of all liability arising from any fraud in respect of such instruments lost or stolen in transit.

10. 10.1

Number of Withdrawals The number of withdrawals in savings accounts should be limited to 50 for each half

year. This will include debits arising out of authorisation for payments to third persons and also those arising from compliance with standing instructions. 10.2 A person may have more than one account in his name but the number of with drawals

would be limited to 50 for each half year for all savings accounts taken together. 10.3 If the account is opened in the middle of a year, the number of permissible

withdrawals shall be allowed proportionately. 10.4 When number of withdrawals is more than the maximum stipulated, a service charge of

not less than 50 paise will be levied for each transaction in excess of 50. Interest will however be allowed at the appropriate rate on the resulting minimum balance, as per rule No. 15. 10.5 When the bank receives a notice with. Full particulars of the cheque from the drawer to

stop its payments, such notice will be recorded, but the bank will not be responsible if the cheque is paid by oversight of such notice or otherwise. Appropriate Service charges as decided by the bank from time to time will be levied.

11. 11.1

Issue of Cheque Book Application for a cheque book must be made on the bank's printed original form/printed

requisition slip. Copy of such forms will not be accepted. 11.2 A cheque book will be sent by registered post at the cost and responsibility of account

holder concerned, unless he calls in person or sends a messenger with a proper letter of authority and with the requisition slip duly signed. 11.3 Three cheque books of 20 leaves each shall be issued free of cost in a year. For issue of

cheque book beyond the above limit, a charge of Rs.2 per leaf for MICR cheque books and Re. 1 per leaf for non-MICR cheque books shall be levied. No charges will be levied for SB cheque books issued at rural branches

12. 12.1

Pass-Book The passbook should be presented at the time of every deposit/withdrawal except in the

case of withdrawal by cheques. 12.2 When withdrawals in accounts are made by cheques, passbooks should be sent for being

made up, as soon as possible after the withdrawal. 12.3 All savings account depositors should carefully examine the entries in the passbook and

draw the bank's attention to errors/omissions, discrepancies/unauthorized/ wrong entries. The customer would be bound by the entries if the bank does not hear from him within a reasonable time after receiving the passbook. His silence would estop him from contesting the entries subsequently. The bank will not be responsible for any entries not authenticated under the initials of its authorised official. 12.4 If the passbook is lost or mislaid, it should be immediately notified. A duplicate

passbook with the latest balance entry will be issued on payment of Rs.20 on a written request duly signed by the depositor with an undertaking that the original passbook, if found at a later date, will be returned to the bank. For recording additional entries for every ledger folio/part thereof Rs.20 will be levied.

13. 13.1

Standing Instructions Standing instructions for remittances such as payment of insurance premiums,

subscription for clubs, periodicals etc., will be accepted by the bank subject to levy of charges decided by the bank from time to time. 13.2 Such instructions continue to hold good until cancellation by either the customer or

closure of account or death of customer or insufficiency of balance. 13.3 The bank will not be liable to the customer for any loss if standing instructions could not

be carried out due to insufficiency of balance in the account.


Transfer of Account Savings accounts may be transferred from one office of the bank to another office in India,

free of charge on a written request from the depositor and on return of the unused cheque leaves, if any, along with the pass book.


Interest Interest will be calculated and paid into the account at half yearly or longer rests on the

minimum monthly balance to the credit of account between the tenth and the last day.


Obligations of Account Holders

To prevent forgery, fraud, etc., account holders should observe the following safe guards: 16.1 To count cheques in the cheque books issued to them and draw the attention of the bank,

if any cheque is found missing therein. 16.2 16.3 **

To keep the cheque books in a place of safety under lock and key. To fill in the date, the name of the payee (in case of cheques) and the amount clearly in

indelible ink, and in such a way as to leave no space for any subsequent additions or insertions of any other words or figures. 16.4 16.5 slips. 16.6 Customers must provide sufficient funds before issuing cheques. Return of cheques for To see that their signatures correspond exactly with the specimen supplied to the bank. To authenticate under their full signature all alterations in the cheques or withdrawal

want of funds is an offence under Sections 138 to 141 of Negotiable Instruments Act 1881. A service charge of 5 paise per Rs. 100 per day with a minimum of Rs.25 per instrument shall be charged to the drawer if the cheque is returned for financial reasons. 16.7 A customer is expected to operate the account continuously. Savings Bank accounts in

which there are no operations for a period of two years or more from the date of last operation, (except by way of any charges debited or interest credited) shall be treated as inoperative accounts. Such inoperative accounts are liable for penalties/service charges as mentioned in Rule 4.2.

17. 17.1

Closure of Account A depositor desiring to close his/her account must present the passbook in order that the

interest due on the account may be entered and a final balance struck. The amount will then be paid to the depositor against his withdrawal slip/cheque. The unused cheque leaves as well as withdrawal slips, if any, should be returned to the bank. For closure of SB account with in a year of its opening, Rs.5 for ordinary SB account and Rs.10 for cheque operated SB account will be charged. 17.2 The bank is at liberty to close any account without assigning any reason.


General Lien The bank has a right to appropriate the deposits of customers towards satisfaction of any

liabilities of customers whether such liabilities be actual or contingent, primary or collateral and several or joint at any office of the bank.

19. 19.1

Claims On the death of a depositor, the amount standing to his/her credit will be paid to such

person or persons as are legally entitled thereto, on producing satisfactory proof of his/her/their title to receive the balance at credit, such as, Succession Certificate, Probate of Will or Letters of Administration granted by the competent court or any other proof as the bank may consider sufficient in the circumstances of the case. 19.2 Where an account stands in the names of two persons operated by either of them, in case

one of them dies, the balance becomes payable to the survivor on the production of a death certificate. 19.3 When the account stands in the names of three or more persons operated by any one of

them as either, survivor or survivors in the event one of them dies, the balance will be payable to the survivors jointly on the production of a death certificate of the deceased. 19.4 If the benefit of survivorship is provided in the contract of deposit (like Either or

Survivor/Anyone or Survivors or Survivor), the bank gets a valid discharge by making payment to the survivor, unless the bank is restrained by an order of a competent court. Even though payment to the survivor will confer a valid discharge to the bank, the survivor will, however, hold the money only as a trustee for the legal heirs (who may include the survivor as well) unless he is the sole beneficial owner of the balance in the account of the sole legal heir of the deceased. 20. 20.1 Right to alter the rules The bank reserves to itself the right to delete, add to or alter these rules at any time

without giving a specific and separate notice to account holder and an announcement of the change in the rules displayed on the notice board of the bank or given in the press will be considered as sufficient notice. 20.2 A person having opened a Savings Bank Account shall be dee med to have read,

understood and agreed to be bound by the rules as now subsisting or as at any time altered or added to.

Fixed Deposit Rules 1. Minimum Deposit Fixed Deposits are received by the Bank at 6its branches for sums of not less than Rs.100 for such periods and at such rates as may be ascertained on application. 2. Who can Open Fixed Deposit accounts may be opened by persons after they are properly identified to our Managers. The accounts may be opened by: i) a person in his/her own name Or ii) minor(s) represented by his/her/their guardian Or iii) two persons with one of the following clauses: a) Joint, b) Either or Survivor, c) Former or Survivor. iv) more than two persons repayable either (a) jointly or (b) to anyone or more among them or the survivor(s) of them. v) a firm, a company or association in its name. The clause repayable to either or survivor/former or survivor/anyone or more or survivor(s) includes the right to the survivor(s) to apply before the date of maturity for repayment or for credit facilities against the security of the deposit. The clause repayable to Former or Survivor includes the right to the Former to apply before the date of maturity for repayment or for credit facilities against the security of the deposit or change in the name of the survivor without the consent of the survivor(s). In view of the survivorship clause facilitating the survivor to get payment of the balance on the due date, it is desirable for constituents to opt for "Either or Survivor" or "Former or Survivor" account. 3. Period of Fixed Deposit Deposit are accepted for a minimum period of 15 days and a maximum period of 120 months. Deposits could however be accepted longer than 120 months in the follow in cases:

i) under the orders of a competent court. ii) where the interests of minors are involved. iii) For institutions, Government undertakings, corporate bodies to meet their special needs like creation of sinking funds, amortisation funds etc., or for individuals for any of their special needs. 4. Payment of Interest Interest at the rates and intervals as applicable from time to time will be paid. At present interest is payable at quarterly intervals. In case the depositors desire to receive the interest at monthly intervals, interest will be paid less discount. The discount is the equivalent of the proportionate monthly interest. (For example, discount on Rs.75 at 9% is 75 x 1/12 x 9/100 = Rs.0.56). Interest may also be credited to an account as per the depositor's discretion. As per the RBI directive all payments of interest and principal will be rounded off to the nearest rupee. The interest payment is subject to the rules on tax deduction at source. 5. Due Date Due date is recorded on the deposit receipt to enable the depositor either to renew the deposit or receive payment of the amount due. Every effort will be made to send due date advice to enable the depositor to give " instructions to renew/demand payment on the due date. If a deposit matures on a holiday, it becomes payable only on the succeeding working day and interest at contracted rate is payable from the date of maturity till the date of succeeding working day. 6. Interest on Overdue Deposits 6.1 When deposits are not renewed or the payment has not been received on the due date, they are transferred to overdue deposit. Interest ceases on the due dates of the deposits. At its discretion, the bank may allow interest for the overdue period provided that (a) the deposit is renewed with effect from the date on which it matured for payment and (b) the rate of interest allowed does not exceed the appropriate rate applicable to the period for which the deposit is proposed to be renewed as ruling on the date of maturity of deposits. Moreover the deposit should be renewed for a period extending upto at least 15 days beyond the date of presentation for the purpose of renewal. In case the bank is requested to renew a portion of overdue deposit, the bank may allow interest for the overdue period on that portion of the deposit to be renewed. 6.2 If the renewed overdue deposit is tendered for foreclosure before completion of 15 days from the date of renewal, no interest shall be paid for the overdue period, even if the total overdue

period from the date of maturity of the old deposit receipt exceeds 15 days. 7. Discharge of Deposit Receipts All deposits receipts should be surrendered duly discharged for repayment or seeking credit facilities against the deposit. For renewals the deposit receipt (without discharge) should be tendered to enable the bank to enter details of renewal on the receipt. 8. Transferability Fixed Deposit Receipts are not transferable between persons by endorsement. But fixed deposit accounts are transferable from one branch to another, if they are situated in two different cities. 9. Loans Loans may, at the discretion of the bank, be granted subject to a maximum of 90% of the deposit amount, at the rate(s) prescribed by the Bank from time to time. 10. Foreclosure The bank may, at its discretion, consider payment of the deposit before the due date subject to the penal provisions applicable from time to time. 11. General Lien The bank has and reserves to itself the right to appropriate the deposit towards depositor's obligation, either individually or jointly with any other person. 12. Nomination The facility of nomination is available for fixed deposits. 13. Claims On the death of a depositor who has been maintaining the account in his/her single name, the amount standing to his/her credit will be paid to such person or persons as are legally entitled thereto, on the production of satisfactory proof of his/her/their title to receive the balance at credit, such as succession certificate, probate of will or letter of administration granted by a competent court or any other proof as the bank may consider sufficient in the circumstances of the case. However, if the depositor(s) has/have nominated a person to receive the payment of the deposit amount after his/her/their death under the bank's Nomination rules then the bank is discharged on making payment to the nominee.

14. Deposit Insurance An amount of deposit upto Rs. 100,000 is covered by the Deposit Insurance & Credit Guarantee Corporation for each account in the bank in an identical name. 15. Payment of Deposits Payment of deposit amount including interest if exceeds Rs.20000/ or the aggregate of deposits held by a customer in his sole name or jointly with others on the date of payment of any one deposit exceeds Rs.20000, shall be made by way of Account Payee crossed cheque/draft or by way credit to SB/CA of the depositor(s). 16. The bank reserves the right to alter any of the rules at any time without notice. These rules are also subject to change(s) if any, advised by the Reserve Bank of India and the Indian Banks' Association.


Recurring deposits is an account held in the banks where the deposit holder invests a fixed sum of money every month for a specified period. Depositors invest a small amount of money in their recurring deposits account, which would be ranging from few hundreds to thousands. This scheme is designed for the people who wish to invest a fixed sum of money monthly to get a lump-sum amount of money after few years. In simple terms it can be defined as small monthly savings scheme which facilitates the investor to mount up handful of money on maturity. Normal tenure of recurring deposits range from minimum of 12 months, to maximum of 60 months. Interest on recurring deposits is generally computed on quarterly compounded basis. Opening a recurring deposit account is similar to opening normal savings bank account. Individuals, group of individuals, companies, educational institutions, firms, trusts, and charitable organisations are eligible to open the RD account. Fixed amount of monthly installments should be paid on or before the last working day of the respective calendar' month. Mode of payment can be cash deposit, money order, postal order, cheque payment, ECS payment and online transfer. The account holder can deposit the installments in advance and there is not limit for making advance payments. If the monthly installments are not paid on or before the due date, interest is charged oil the account. If the recurring deposits account holder fails to make monthly deposits continuously for

six months and more, the recurring deposit account is deemed to be discontinued. However, foreclosure of account is also possible, where some rate of interest is charged on the maturity amount. The rate of interest on foreclosure varies according to the banks. Recurring deposit account holders can get loan for around 90% of the amount held in the deposit accounts or as decided by the banks. Payment exceeding Rs.20,000/-is paid only through crossed or account payee cheques. Depositors are also offered with the option of reinvesting the matured amount in the RD account.

CURRENT DEPOSITS In the banking deposit terminology, the current deposit is nothing but the depositing of money in a bank account or in financial institution without any fixed maturity date. Under this type of current deposit accounts customer only earn the demand deposit interest. Let us consider an example to understand the concept behind the current deposit. Current deposit is made in a bank or in any financial institution; the deposited amount in the current deposit is made available to the account holder for anytime withdrawal without any premature withdrawal penalty. Customer can withdraw the amount anytime of the day by writing a cheque. These types of current deposit account are mainly used by corporate and business personals that might need money at any point of hour. It is mostly used for paying the salaries to employees by cheque and to get instant payment without any restriction. The interest on current deposit account is paid monthly or quarterly by banks and financial institutions. Current deposit account is a kind of demand deposit account like saving with difference of unlimited withdrawal facility. Current deposit account can be opened in any bank by any person who needs the account without withdrawal limits. Any individual, legal person, company, institution, trust, corporate bodies, government, semi- government departments, any developmental agency undertaken by government are allowed to open current deposit account in any nationalized bank.

To open current deposit account one needs to have a referral from current account holder, this is mandatory according to the bank policies. The minimum amount needed for opening a new current deposit account is Rs. 5000, there is no limit on maximum amount one can deposit.

Nomination facility is also available in current deposit account; no interest rate is given on current deposit account. Some other benefits related to this account are:


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