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Shreyas-Tax Saver Deposit Scheme

 

1. NAME OF THE SCHEME:        Shreyas-Tax Saver

2. NATURE OF ACCOUNT:

Shreyas- Tax Saver is basically a term deposit scheme under the Fixed Deposits and Kamadhenu Deposits streams of the Bank with the benefit of deduction from Income, up to Rs.1 lakh under Section 80C of the IT Act, 1961.

3. TYPE OF ACCOUNT:

         The term deposit shall be of the following types, namely

  1. Individual Account- can be in the name of the individual for himself or in the capacity of the Karta of a Hindu undivided family(HUF).
  2. Joint Account- can be opened by only two adults jointly or an adult and a minor, and payable to either of the holders or to the survivor.

 Provided that in the case of joint account, the deduction from      income under section 80C of the Act shall be available only to    the first holder of the deposit.

4. APPLICATION:

Application to open a Shreyas-Tax Saver account should be made in the Bank’s prescribed form. The applicant should provide the Permanent Account Number and submit a copy of the PAN Card. Two recent passport size photographs of the account holder(s) are to be submitted along with the application (If they are not already provided to the branch).

5. IDENTITY AND ADDRESS PROOF ( For new customers):

Any one of the following documents can be produced as proof of identity of the prospective a/c holder;

a)      Passport

b)      Original letter of introduction from existing bank

c)      Driving Licence

d)      Voter’s identity card

e)      Employee identity card with photograph and address of the employee (subject to the satisfaction of the bank).

f)        PAN card

g)      Photo credit card along with the current billing cycle (latest statement)

h)      ARMS licence issued by State/Central Government of India authority with photograph of applicant.

i)         Pension book issued by Government of India with photograph of applicant containing name, address and validity period.

j)         Freedom fighter pass, issued by Home Ministry, Government of India authority with photograph of applicant.

In case any of the documents listed above does not contain the correct/present address of the applicant or if the present address is different for genuine reasons, any one of the following documents may be obtained.

a)      Telephone/Electricity Bills.

b)      Rent Receipt.

c)      Municipal Tax Assessment Order/IT assessment order.

d)      Latest statement of account from a Bank or credit card issuing company.

e)      Latest premium receipt from any Life Insurance Company.

f)        Current lease agreement or leave and licence agreement for flat/house.

g)      Consumer gas connection card/ book.

h)      Certificate from the ward officer maintaining election roll, certifying address of the applicant.

i)         Latest certificate from the post office, confirming address of applicant.

j)         Any other documents or proof to the satisfaction of the Bank/Manager.

 

Any change in the address of the depositor should be immediately intimated to the Bank with relevant documents for updation in the bank’s records.

6. INTRODUCTION (For new customers):

A proper introduction by an existing account holder having a satisfactory account for not less than one year or by a person well known to the bank is required for opening an account.

7. AMOUNT OF DEPOPSIT:

- Minimum deposit under the scheme is Rs.100/- (and in multiples     of Rs.100 thereafter).

        -  Maximum deposit is Rs.1, 00,000/- per person.

8. RATE OF INTEREST :                - as applicable time to time.

Preferential rate of interest is not admissible on deposits under this scheme for Senior Citizens or for our Employees.

9. INTEREST PAYMENT:

A)      Monthly (discounted) or quarterly on Fixed Deposits.

B)       Compounded quarterly on Kamadhenu Deposits payable on maturity.

 

Rate of interest is determined with reference to the period of deposit and as per the decision of the Bank from time to time. The deposit will earn interest at the rate prevailing on the date of acceptance, subject to deduction of tax at source on interest, in terms of section 194A of Income Tax Act, 1961.

10. PERIOD OF DEPOSIT:

         The deposit shall be for a period of 5 years.

11. MATURITY:

  1. While obtaining payment, depositor/s must surrender the deposit receipt duly discharged on the reverse in the space provided for the purpose.
  2. Due date will be recorded on the deposit receipt to enable the depositor to receive payment at the branch of issue. No further intimation can be claimed as a matter of right, by the depositor.
  3. In case the depositors approach any branch other than the deposit-issuing branch for encashment of the deposit receipts, the same would be done by collection process only.
  4. Generally the proceeds of the deposit would be credited only to the running account of the depositor/s. However, cash payment would be made provided the aggregate of deposits together with interest payable thereon, standing in the individual name of the depositor or jointly with others in the branch, is less than Rs.20,000/- (currently) as per Income Tax Act(1961).
  5. The deposit does not earn any interest after the expiry of the period of the deposit. However, such overdue deposit would earn interest provided it is renewed as our normal Fixed/Kamadhenu Deposit so as to fall due on any day not less than 15 days from the date of presentation for renewal. The rate of interest applicable to the renewed deposit would be the rate applicable to the renewed period as ruling on the date of maturity OR the lower of the rates prevailing on the date of maturity or the date of renewal, depending on the overdue period.
  6. If the depositor requests for renewing only a portion of an overdue deposit, the bank shall allow interest for the overdue period only on that portion of the overdue deposit, which is proposed to be renewed as a normal Fixed/Kamadhenu Deposit.
  7. If the date of maturity falls on a holiday or non- business working day, interest at the originally contracted rate shall be paid only for the intervening holiday/non business working day irrespective of whether the depositor seeks repayment on the succeeding working day or later on.
  8. Tax is deductible on interest paid/accrued as per TDS provisions applicable from time to time.
  9. Where the maturity proceeds are to be paid to other banks, at the request of the depositor, the same will be treated as a collection item by deducting appropriate service charges as applicable for collection items.

12. PAYMENT BEFORE MATURITY:

Deposits under this scheme can not be closed before maturity.

13. RENEWAL:

The deposit may be renewed as our Normal Fixed/Kamadhenu Deposit on or after maturity for a further period provided the deposit so renewed runs for not less than 15 days from the date of presentation of deposit receipt for renewal. While renewing overdue deposits, no change in the names of the depositors as appearing on the original deposit is permitted. Additional amount shall not be accepted and clubbed to overdue deposits, which have been presented for renewal after the date of maturity for the purpose of renewal. If the depositor decides that additional amount is to be clubbed along with the maturity proceeds, then it will be treated as a fresh deposit and a fresh account is opened by obtaining fresh Account Opening Form.

14. DEPOSIT RECEIPTS:

  1. Deposit receipt will be issued  incorporating all the requisite information, viz., name and address of the depositor/s, rate of interest, due date, period, deposit account number, name of the nominee ( if opted) , PAN number and Signature of the depositor.
  2. On a deposit receipt being received by the depositor, the entries should be carefully examined and any error or omission should be immediately brought to the notice of the Bank.
  3. Depositor/s shall keep their deposit receipts in place of safety, as the Bank will not be held responsible for any loss or incorrect payment attributable to the neglect of this rule.
  4. The depositor shall immediately inform the branch in case of loss of deposit receipt.
  5. Duplicate deposit receipt will be issued against a letter of request and agreement to indemnify as per the Bank’s format and procedure.
  6. Service charge as decided by the bank from time to time will be levied for issuing a duplicate deposit receipt.
  7. Any change in the address of the depositor/s shall be immediately intimated to the Bank along with relevant documents and the deposit receipt may be submitted for noting the change/s.
  8. No entries shall be made in the deposit receipt by the depositor or any third person.
  9. The Bank reserves, at all times, its right to rectify or correct the entries wrongly made or found to be fictitious without being supported by tangible evidence.

15. TRANSFER OF ACCOUNTS:

Request of customers for transfer of deposits should be genuine and they should actually be residing/conducting trade/business activity in the command area of the transferee branch.

 

Transfer will be effected only after ensuring the need and necessity for transfer of deposits with strict compliance of Know your Customer(KYC)/Anti Money Laundering(AML) guidelines.

16. FACILITIES:

    A. Nomination Facility:

Nomination facility is available to all deposit accounts with certain exception. Nomination can be made in favour of an individual by individual account holders only and can be made either at the time of opening of the account or at any time subsequently during which the Bank holds the deposit account.

 

 Any variation /cancellation of nomination may be made at any time     subsequent to registration of the nomination during which the Bank holds     the deposit to the credit of the depositor. Applicable Service Charges will     be collected.

 

No nomination shall be made in respect of a term deposit applied for and held by or on behalf of a minor.

B. Certificate of Interest Paid

On demand, branches shall issue a certificate of interest paid, year-wise (April to March).

17. GENERAL:

  1. Lien:

The Bank has a paramount lien on the deposit amount and it  reserves       the right to appropriate it towards any financial obligations of the depositor to the Bank in any capacity.

  1. Rights of nominee/s:

(1)      In the event of death of the holders/s of a Shreyas-Tax Saver deposit in respect of which a nomination is in force, the nominee or nominees shall be entitled to encash the deposit, at any time before or after its maturity, as per the procedure of the bank.

(2)       For the purpose of sub - paragraph (1), the surviving nominee or nominees shall make an application to the branch manager of the bank, supported by proof of death of the holder and of deceased nominee or nominees, if any.

(3)       If there are more nominees than one, all the nominees shall give a joint discharge of the receipt at the time of receiving the payment.

  1. Payment to legal heirs:

 If a holder of a Shreyas-Tax Saver deposit dies and there is no nomination in force at the time of his death, the bank shall pay the sum due to the deceased, to his legal heirs, according to the claims     procedure of the bank.

  1. FEMA :

   The depositor/s shall inform the Bank in writing in the event of change in status under Foreign Exchange Management Act.

  1. Unclaimed Deposits:

If the maturity proceeds are not claimed by the depositor/s  within 10 years after date of maturity, the same will be transferred to our Head Office and subsequent claims will  be considered only after its transmission back from HO.

  1. Know Your Customer Norms (KYC):

Customer has to authorise the Bank to verify the details given in the account opening form if necessary through any third party.

  1. Destruction of records:

 The ledgers/records pertaining to the account will be destroyed periodically in accordance with law.

  1. Confidentiality of Customer Information:

 The customer’s personal information will be treated as private and confidential. Transaction details of customer’s accounts will not be       revealed to a third party other than in the following exceptional cases.

a)      If information has to be given by law.

b)      If there is a duty to the public to reveal the information.

c)      If our interests requires us to give the information( for eg., to prevent fraud) but this will not be used as a reason for giving information about the customer or his/her accounts to anyone else including other companies in Bank’s group for marketing purpose.

d)      If customer requests us to reveal the information or if customer permits Bank to provide such information to entities with whom we have tie-up arrangements for providing other financial service products.

18. LOAN FACILITY:

No loan will be sanctioned against the security of these deposits. Deposit Receipt can not be pledged as collateral security also.

19. REPAYMENT UNDER JOINT DEPOSIT ACCOUNTS

Joint deposits shall be payable to either of the holders or to the survivor.

 

Note :The Bank reserves to itself the right to alter / delete / add to these rules at any time without prior individual notice and such  alterations /deletions / additions shall be binding on the depositor/s. Customers are requested to enquire with the branch for the latest interest rates or changes to these rules.