6. BASIC SAVINGS BANK DEPOSIT ACCOUNT (BSBDA)
'Basic Savings Bank Deposit Account' is offered to all the customers with the following minimum common facilities:
- The 'Basic Savings Bank Deposit Account' is considered a normal banking service available to all.
- This account does not have the requirement of any minimum balance.
- The services available in the account will include deposit and withdrawal of cash at bank branch as well as ATMs; receipt / credit of money through electronic payment channels or by means of deposit / collection of cheques drawn by Central / State Government agencies and departments.
- While there will be no limit on the number of deposits that can be made in a month, account holders will be allowed a total of 8 withdrawals in a month with a cap of 4 withdrawals through ATM & with a cap of 4 cash withdrawals at branch.
- Facility of ATM card or ATM-cum-Debit Card.
- The above facilities will be provided without any charges. Further, no charge will be levied for non-operation / activation of in-operative 'Basic Savings Bank Deposit Account'.
- Bank is free to evolve other requirements including pricing structure for additional value-added services beyond the stipulated basic minimum services on reasonable and transparent basis and applied in a non-discriminatory manner.
- The 'Basic Savings Bank Deposit Account' would be subject to RBI instructions on Know Your Customer (KYC) / Anti-Money Laundering (AML) for opening of bank accounts issued from time to time. If such account is opened on the basis of simplified KYC norms, the account would additionally be treated as a 'Small Account'. Small Account means a saving account where (a) the aggregate of all credits in a financial year does not exceed Rs.1,00,000/- (b) the aggregate of all withdrawals and transfers in a month does not exceed Rs.10,000/- and (c) the balance at any point of time does not exceed Rs 50,000/-
- Holders of 'Basic Savings Bank Deposit Account' will not be eligible for opening any other savings bank deposit account in the bank. If a customer has any other existing savings bank deposit account in the bank, he / she will be required to close it within 30 days from the date of opening a 'Basic Savings Bank Deposit Account'.
7. INTEREST PAYMENTS
Branches will pay interest on Savings bank and Term deposits at the rate prescribed by the bank from time to time within the general guidelines issued by RBI. In case of Term Deposit interest will be calculated at quarterly or longer rest except in case of monthly interest payment scheme, where interest is paid monthly at discounted value. The interest on term deposit is calculated in accordance with the formulae and conventions advised by Indian Banks' Association.
- In the case of savings bank deposits, interest will be calculated as per RBI norms on daily product basis and credited to the account on quarterly basis.
- A uniform interest rate shall be set on balance up to Rupees one lakh irrespective of the amount in the account within this limit.
- Differential rates of interest may be provided for any end-of-day savings bank balance exceeding Rupees one lakh.
- In case of term deposits, interest for period of less than 3 months or where the terminal quarter is incomplete will be paid proportionately for the actual number of days reckoning the year as 365 days.
- If a FDR matures and proceeds are unpaid, the amount left unclaimed with the branch will attract savings bank rate of interest.
- The rate of interest on deposits will be prominently displayed in the Branch premises/on bank’s website. Any change in the deposit rates shall also be prominently displayed in the branch premises.
- If the maturity date of a Term Deposit falls on a holiday, Sunday, Non-Business working day, interest shall be paid for such intervening day(s) at the originally contracted rate till the succeeding working day.
- Branches are required to deduct income tax at source on interest paid/accrued on the deposit, as per the Income Tax regulations and at rates in force at the relevant time. A certificate of Income Tax deducted will be issued in the prescribed form. The depositor, if entitled to exemption from TDS can submit declaration in the prescribed format 15 G (For General Depositor) or 15 H (For Senior Citizens) at the beginning of every financial year. The depositors shall furnish PAN along with form 15G/15H. Failure to furnish PAN will result in deduction of TDS at the rate as advised by Income Tax department. The provision of IT Act shall be explained to the customer at the time of opening of Term Deposit Account.
- Form 15-G / 15-H - Acknowledgement to Customers
It is not required to deduct TDS from depositors who submit declaration in Form 15-G/15-H under Income Tax Rules, 1962. However, it has been observed that despite submission of Form 15-G/15-H by customers, branches are deducting tax at source, at times, causing inconvenience to customers resulting in a number of complaints. Such instances arise because either the forms are misplaced or a track is not kept of forms received in the branches.
With a view to protect interest of the depositors and for rendering better customer service, branches to give an acknowledgment to the customers at the time of receipt of Form 15-G/15-H. This will help in building a system of accountability and customers will not be put to inconvenience due to any omission on part of the branches.
7.1 PAYMENT OF INTEREST ON ACCOUNTS FROZEN BY BRANCHES
Branches are at times required to freeze the accounts of customers based on the orders of the enforcement authorities. In such cases the procedure detailed below has to be followed.
- A request letter may be obtained from the customer on maturity. While obtaining the request letter from the depositor for renewal, branches should also advise him to indicate the term for which the deposit is to be renewed. In case the depositor does not exercise his option of choosing the term for renewal, branches may renew the same for a term equal to the original term.
- No new receipt is required to be issued. However, suitable note may be made regarding renewal in the deposit account.
- Renewal of deposit may be advised by registered letter / speed post / courier service to the Government department concerned under advice to the depositor. In the advice to the depositor, the rate of interest at which the deposit is renewed should also be mentioned.
- If overdue period does not exceed 14 days on the date of receipt of the request letter, renewal may be done from the date of maturity. If it exceeds 14 days, branches may pay interest for the overdue period as per the policy, and keep it in a separate interest free sub-account which should be released when the original fixed deposit is released. This sub-account also to be kept under frozen status.
• Interest on savings bank accounts, including those frozen by the enforcement authorities, shall be credited on regular basis irrespective of the operational status of the account
7.2 PAYMENT OF ADDITIONAL INTEREST ON DOMESTIC DEPOSITS -
(A) Additional interest of one per cent per annum, over and above the rate of interest mentioned in the schedule of interest rates on savings or a term deposits of bank’s staff and their exclusive associations as well as on deposits of Managing Director & CEO, Executive Director or such other Executives appointed for a fixed tenure, subject to the following conditions:
- i) The additional interest is payable till the person continues to be eligible for the same and in case of his ceasing to be so eligible, till the maturity of a term deposit account.
* Managing Director & CEO, Executive Director are entitled for additional interest of 1% per annum, over and above the rate of interest mentioned in the schedule of interest rates on savings or a term deposits, even after ceasing of their fixed tenure in the Bank.
ii) In case of employees taken over pursuant to the scheme of amalgamation, the additional interest is allowed only if the interest at the contractual rate together with the additional interest does not exceed the rate, which could have been allowed if such employees were originally employed by the bank.
iii) In the case of employees taken on deputation from another bank, the bank from which they are deputed may allow additional interest in respect of the savings or term deposit account opened with it during the period of deputation.
iv) In the case of persons taken on deputation for a fixed tenure or on a contract of a fixed tenure, the benefit will cease to accrue on the expiry of the term of deputation or contract, as the case may be.
v) Bank Employees’ Federations, in which bank employees are not direct members, shall not be eligible for additional interest.
- vi) The additional interest may be paid on the following deposits after obtaining a declaration from the depositor concerned, that the monies deposited or which may be deposited from time to time into such account belong to the depositor:-
a) member or a retired member of the bank’s staff, either singly or jointly with any member or members of his/her family; or
b) the spouse of a deceased member or a deceased retired member of the bank’s staff; and
c) An association or a fund, members of which are members of the bank’s staff.
B) Bank shall provide resident Indian senior citizens, higher and fixed rate of interest as compared to normal deposits of any size. Provided that this facility is not offered on the term deposit standing in the name of an HUF or the Karta of the Hindu Undivided Family (HUF), even if the Karta is a resident Indian senior citizen.
C) Bank shall give their resident Indian retired staffs, who are senior citizens, the benefit of additional interest rates as admissible to senior citizens over and above the additional interest payable to them by virtue of their being retired members of the banks’ staff.
8. INOPERATIVE / DORMANT ACCOUNTS
Accounts which are not operated for a continuous period of over 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(s) shall be informed in writing 3 months before his/her/their account is classified as inoperative/dormant. The depositor can request the Bank to activate the account for operating it.
In case of depositors whose whereabouts are not traceable, branches should segregate such account(s) to reduce risk of frauds and to protect interest of the depositor as well as the Bank. Operation in such account(s) may be allowed after due diligence to ensure genuineness of identity, signature & transactions, etc. Bank shall also ensure that the amount lying in inoperative accounts are properly audited by the internal auditor / statutory auditor of the Bank.
9. MINORS' ACCOUNTS
The savings bank account in the name of minor under the guardianship will be operated by the guardian only for the minor's benefit. However a minor on completion of the age of 10 years and who is able to read and write will be permitted to operate the account without reference to the guardian, provided an undertaking is obtained from the guardian at the time of opening an account stating that the account will be solely operated by the minor at their sole risk and responsibility within the limitation prescribed by bank.
On attaining the major status, 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 the erstwhile minor duly verified by the natural guardian would be obtained and kept on record for all operational purposes.
10. ACCOUNT OF VISUALLY IMPAIRED PERSONS
Bank also provides Banking facilities to visually impaired persons in the matter of opening an account. Visually impaired person may open the account either singly/jointly with any person of his/her choice whom he/she considers reliable and who may be competent to contract and should not be visually impaired person. However, mode of operation in such accounts will be "Former or Survivor" and the visually impaired person shall be 1st named account holder. The rules of business, terms and conditions are to be read out by the branch in the presence of a witness known to the branch. Cash payment to a visually impaired person is to be made in the presence of a witness known to the branch and a branch official other than paying cashier.
Branches should ensure that all the banking facilities such as cheque book facility including third party cheques, ATM facility, Net banking facility, locker facility etc. are invariably offered to the visually challenged without any discrimination, as they are legally competent to contract.
Branches to render all possible assistance to the visually challenged for availing various banking facilities.
In addition to the above, magnifying glasses should also be provided by all bank branches for the use of persons with low vision, wherever they require for carrying out banking transactions with ease. The branches should display at a prominent place notice about the availability of magnifying glasses and other facilities available for persons with disabilities.
11. SAVINGS BANK ACCOUNT OF OLD / INCAPACITATED PERSONS
With a view to enabling the old/sick/ incapacitated account holders to operate their bank accounts, branches may follow the under noted procedure.
- Wherever thumb or toe impression of such customers is obtained on the cheque/withdrawal slip, the same should be identified by two independent witnesses, known to the bank, one of whom should be an Officer of the branch.
- Whenever the customer cannot even put his / her thumb impression, toe impression may be taken in lieu of thumb impression.
- The customer should also be asked to indicate to the branch as to who would withdraw the amount from the branch on his/her behalf and he/she should provide a letter of authorization in that regard, which should also be witnessed by two independent witnesses one of whom should be an officer of the branch.
- Such authorized representative shall have to put his signature on the reverse of cheque / withdrawal slip in token of having received the amount along with his acknowledgement in this regard.
- Any medical certificate received / submitted in this connection will be additional evidence but not a substitute to the procedure, detailed above.
12. ACCOUNT OF PERSONS WITH AUTISM, CEREBRAL PALSY, MENTAL RETARDATION & MULTIPLE DISABILITIES:-
Savings bank and Term Deposits accounts can be opened in the name of persons with autism, cerebral palsy, mental retardation and multiple disabilities by the legal guardian appointed by the District Court under Mental Health Act, 1987 or by the Local Level Committees set up under the National Trust for welfare of Persons with autism, cerebral palsy, mental retardation and multiple disabilities under Disabilities Act, 1999. Legal Guardian, so appointed, will furnish an indemnity cum undertaking bond duly stamped as per the local law in force along with Guardianship Certificate.
13. ACCOUNTS OF TRANSGENDER PERSONS:-
In case of person claiming to be transgender and needs to open account or to do any banking transaction, the person will be recognized as “Third Gender” and the details shall be accepted in AOFs/ or other applicable forms as such. The salutation of such person shall be “Mx”. All transgender customers shall be treated equally to other male/female customers without any discrimination.
14. EASE IN BANKING FACILITY FOR SENIOR CITIZENS AND DIFFERENTLY ABLED PERSONS INCLUDING THOSE WHO ARE VISUALLY IMPAIRED: DOOR STEP BANKING:-
In view of the difficulties faced by senior citizens of more than 70 years of age and differently abled or infirm persons (having medically certified chronic illness or disability) including those who are visually impaired, branches are advised to make concerted effort to provide basic banking facilities.
Door Step Banking services are provided from our staff and Business Correspondents (BC) only to the senior citizens and differently abled persons in branches at Metro & Urban centres (having staff strength more than 10) & BC linked branches.
Bank will provide following basic banking facilities by Doorstep Banking
- Pick up of cash against receipt – Maximum limit of Rs. 10000/-
- Pick up of instruments against receipt-
- Delivery of cash against withdrawal(s)/cheques – Maximum Limit Rs. 10000/- & Min of Rs. 2500/-.
- Delivery of cheque book – one cheque book at a time.
- Delivery of Demand Drafts
- Submission of Know Your Customer (KYC) documents
- Life Certificate
For Door Step banking request received from customer through by registered e-mail / telephone/ authorized representative upto 2.00 PM at the branch, bank branch will provide such services within 4 hours and request received after 2.00 PM will be provided on next working day.
As the service provided to the Senior Citizens of more than 70 years of age and differently abled or infirm persons is a noble service, to provide the same without levying any service charge for maximum ‘2’ transactions in a month and afterwards Rs.100/- + GST to be recovered from the customer.
15. ACCOUNT OF ILLITERATE PERSON
Branches allow illiterate persons to open savings bank and term deposit account and for this purpose his thumb impression along with photo is obtained on the account opening form. All types of accounts except Current Account may be opened in the name of illiterate person.
Rules of the Bank regarding opening and operation of the account and also the contents of Bank Account Opening Form shall be explained to the depositor at the time of opening of the account. A declaration shall be obtained from such prospective account-holder along with that of a witness, acceptable to the Branch, stating that the contents of the Account Opening Form and account rules have been translated in the language known to the depositor(s) and have been explained to him and fully understood by him/her/them. No cheque book facility is provided for such savings account and branch will explain the need for proper care & safe keeping of pass book etc. to the account holder.
16. CUSTOMER INFORMATION
The optional information to be furnished in the account opening form will not be used by the Bank, its subsidiaries and affiliates for cross selling of services or products of the Bank unless specifically permitted.
16.1 COLLECTING INFORMATION FROM CUSTOMERS FOR CROSS-SELLING PURPOSES
At the time of opening of accounts of the customers, branches collect certain information including lot of additional personal information.
In this connection, the Committee on Procedures and Performances Audit on Public Services (CPPAPS) observed that the information collected from the customer was being used for cross selling of services of various products and also for the products of subsidiaries and affiliates. Sometimes, such information was also provided to other agencies. As branches are aware, the information provided by the customer for KYC compliance while opening an account is confidential divulging any details thereof for cross selling or any other purpose to outside agencies other than authorized by branch/ bank, would be in breach of customer confidentiality obligations. The information collected from the customer for the purpose of opening of account should be treated as confidential and any details thereof should not be divulged for cross selling or any other purposes. It may, therefore be ensured that information sought from the customer is relevant to the perceived risk, is not intrusive, and is in conformity with the guidelines issued in this regard.
Wherever it is desired to collect any information about the customer for a purpose other than KYC requirements, it should not form part of the account opening form. Such information may be collected separately, purely on a voluntary basis, after explaining the objectives to the customer and taking his express approval for the specific uses to which such information could be put. Branches should strictly ensure compliance with their obligations to the customer in this regard.
17. SECRECY OF CUSTOMER'S ACCOUNTS
The bankers' obligation to maintain secrecy arises out of the contractual relationship between the banker and customer, and as such no information should be divulged to third parties except under circumstances which are well defined. The following exceptions to the said rule are normally accepted:
- Where disclosure is under compulsion of law i.e. when called upon by competent court of law, by Income Tax Officers, by police authorities, under statutory obligations, by central excise and central custom authorities, etc.
- Where there is duty to the public to disclose
- Where interest of bank requires disclosure and
- Where the disclosure is made with the express or implied consent of the customer.
18. INTRA-BANK DEPOSIT ACCOUNTS PORTABILITY
KYC once done by one branch of the Bank shall be valid for the transfer of the account within the Bank as long as full KYC has been done for the account concerned. The customer should be allowed to transfer his account from one branch to another branch without insisting on fresh proof of address and on the basis of a self-declaration from the account holder about his / her current address, subject to submitting proof of address within a period of six months. Periodical updation of KYC data would continue to be done by branch as per prescribed periodicity.
19. OPERATIONS IN TERM DEPOSIT:
19.1 PREMATURE WITHDRAWAL OF TERM DEPOSIT
Branches 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, time to time, issues separate instructions regarding penal rate payable for premature withdrawal of term deposit. The Bank shall make depositors aware of the applicable rate along with the deposit rate. In case of premature withdrawal (foreclosure) of overdue renewed Term deposit interest paid in excess of saving rate for overdue period shall be recovered at the time of closing the account. For payment before maturity all the joint account holders have to discharge the term deposit.
19.2 PREMATURE RENEWAL OF TERM DEPOSIT
In case the depositor desires to renew the deposit by seeking premature closure of an existing term deposit account, branches will permit the renewal at the applicable rate on the date of renewal, provided the deposit is renewed for a period equal to or longer than the balance period of the original deposit. While prematurely closing a deposit for the purpose of renewal cum extension, 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.
19.3 RENEWAL OF OVERDUE TERM DEPOSITS
When a term deposit is renewed on maturity, the interest rate for the renewal 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, the term deposit shall be renewed from the date of request by the depositor and interest for the overdue period will be paid at the rates decided by the Bank from time to time.
It is decided that in exceptional cases where a term deposit remains overdue for a period more than ten years, and customer desires to renew it for a further period equal to or more than the overdue period, branch will accept such request and will renew the FDR for a period for more than ten years. The rate of interest payable on such FDR for the overdue period shall be the rate of interest for the highest time bucket as ruling on the date of maturity or on the date of renewal whichever is lower. The rate of interest for the renewed period will be the rate of interest for the highest time bucket as ruling on the date of renewal. Premature closure of such renewed overdue FDR will be governed by the provision as laid down under other relevant heads of this policy.
19.4 AUTOMATIC RENEWAL OF TERM DEPOSIT ON DUE DATE
Unless there are specific instructions to the contrary, term deposits will be renewed for the same tenure as was for the matured Term Deposit and rate of interest would be as prevailing on due date. The Term Deposit Receipt renewed under Automatic Renewal would be given to the customer upon submission of original Term Deposit duly discharged.
19.5 ADVANCES AGAINST DEPOSITS
The Branches 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. Branches 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 / guardian. KYC to be thoroughly checked before granting advances against deposits.
19.6 ISSUE OF TERM DEPOSIT RECEIPT :
Branches shall issue Term deposit receipt indicating therein full details, such as, date of issue, period of deposit, due date, applicable rate of interest, etc.
PRECAUTIONS FOR ISSUING OF DUPLICATE FIXED DEPOSIT RECEIPT :
- If the original FDR is misplaced / lost, the duplicate thereof shall be issued with an express endorsement on the same that it has been issued in lieu of Original FDR (specify the number / account) after the same was reported lost/misplaced. Corresponding entry shall be made in the ledger of the account concerned including the electronic ledger.
- At the time of issuance of duplicate FDR, the deposit holders shall be required to execute indemnity Bond(s), which be appropriately stamped under the relevant State Laws. Stamp Duty shall be borne by the depositor concerned.
- The Bank shall issue necessary Circular to all the branches to mark caution against the lost FDR.
- Where the original Fixed deposit Receipt, which has been reported lost / misplaced, is held by more than one person jointly, the request for issuance of duplicate FDR shall be made jointly by them, the indemnity bonds shall be executed by each of such joint holders and the proceeds of the FDR, in case of pre-mature encashment, shall be credited to a joint account held by such holders either maintained with our Bank or any other bank.
- Besides an indemnity bond, an undertaking from the beneficiary shall be taken. In the undertaking, the beneficiary shall specifically and in certain terms declare the following:
- Date of loss/misplacement of Original FDR;
- Circumstances, in which such loss/misplacement took place;
- All efforts, as are expected from a reasonable and prudent person, to locate the original FDR have been exhausted;
- Matter has been reported to the branch at the earliest possible instance;
- The original FDR was misplaced from the possession/control of the beneficiary or that of some third party;
- The original FDR has not been pledged or delivered or handed over to any third party as a primary/collateral security or for any other purpose;
- In case the original FDR is located after the loss has been reported to the Branch, the same shall be immediately handed over to the Branch.
- This undertaking is in addition to and not in derogation of the indemnity bond executed by the beneficiary;
- The beneficiary understands that the undertaking constitutes a crucial document for the purpose of the bank's decision to issue a duplicate FDR and make payment there under.
- The undertaking should be appropriately stamped under the relevant and applicable state laws. Charges whereof shall be borne by the depositor(s).
19.7 TIMELY ISSUE OF TDS CERTIFICATE TO CUSTOMERS:
With a view to protect the interests of the depositor and for rendering better customer service, branches are advised to provide TDS Certificate in Form 16A, to their customers in respect of deducted Tax at source. Branches are advised to provide Form 16A to the customers well within the Time-frame prescribed under the Income Tax Rules.
19.8 TENOR OF DOMESTIC TERM DEPOSIT:
Minimum tenor of deposit offered shall be seven days. No interest shall be paid, where premature withdrawal of deposits takes place before completion of the minimum period i.e. Seven days.
20. SETTLEMENT OF DUES IN DECEASED DEPOSITOR ACCOUNT :
Settlement of dues in deceased depositor account along with interest will be governed by the Bank's "Policy For Settlement Of Claims in respect of Deceased Account Holders".
21. SETTLEMENT OF CLAIMS IN RESPECT OF MISSING PERSON
The settlement of claims in respect of missing persons would be governed by the provisions of Section 107/108 of the Indian Evidence Act, 1872. Section 107 deals with presumption of continuance and Section 108 deals with presumption of death. As per the provisions of Section 108 of the Indian Evidence Act, presumption of death can be raised only after a lapse of seven years from the date of his/her being reported missing. As such, the nominee/legal heirs have to raise an express presumption of death of the subscriber under Section 107/108 of the Indian Evidence Act before a competent court. If the court presumes that he/she is dead, then the claim in respect of a missing person can be settled on the basis of the same.
Payment of balance outstanding in the account of such person shall be made to the nominee / legal heirs against their claim on production of document as prescribed by the bank evidencing occurrence of such incident and identity of the claimant.
However, in view of the imperative need to avoid inconvenience and undue hardship to common person, claim in respect of missing persons upto Rs.1 lac or otherwise specified by the Bank from time to time may be settled only on the basis of following documents - a) FIR b) Non-traceable Report issued by Police Authorities c) Letter of Indemnity.
22. INSURANCE COVER FOR DEPOSITS
All bank deposits are covered under the insurance scheme offered by Deposit Insurance and Credit Guarantee Corporation of India (DICGCI) subject to certain limits and conditions.
“Deposit Insurance Cover” along with the limit of coverage should be incorporate upfront in the passbook.
23. 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.
24. CLOSURE OF ACCOUNT
- Branches will on receipt of a written request from the account holder close the account after obtaining the unused cheque leaves, if any. The Branch may also close any account with prior intimation to the account holder in case the prescribed minimum balance is not maintained or, in its opinion the account is not properly conducted or any other reason. Before doing so, the branch is obliged to assign the reasons in writing or through any other mode of communication for closing the account.
- If an existing customer is unable to furnish details required under statutory obligations (KYC/AML guidelines) as mentioned, bank may close such account(s) after giving due notice to the customer.
25. STALE OR POST DATED CHEQUES
Branches will be receiving cheques drawn on current deposits and savings bank account for payment. Before making the payment, Branch will ensure that the cheque is neither stale i.e. more than 3 months old (w.e.f 01.04.2012) nor postdated i.e. bearing a future date.
26. BANK'S GENERAL LIEN
Branch has the right to retain all the goods or any property (which is in its possession and which 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.
27. REDRESSAL OF COMPLAINTS AND GRIEVANCES
Depositors having any complaint / grievance with regard to services rendered by the Branches have a right to approach authority (ies) designated by the Bank for handling customer complaints/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 Branch within 30 days from date of complaint or he is not satisfied with the response received from the Branch, he has a right to approach Banking Ombudsman appointed by the Reserve Bank of India.
28. CHEQUE BOOKS
28.1:ISSUING LARGE NUMBER OF CHEQUE BOOKS
Branches may issue cheque books with larger number of leaves if a customer demands the same and also ensure that adequate stocks of such cheque books are maintained to meet the requirements of the customers.
Appropriate care should be taken while issuing large number of cheque books. It should be done in consultation with the Controlling Office.
28.2:WRITING THE CHEQUES IN ANY LANGUAGE
All cheque forms should be printed in Hindi and English. The customer may, however, write cheques in Hindi, English or in the regional language concerned.
28.3:DISPATCHING THE CHEQUE BOOK BY COURIER
The procedure of disallowing depositors to collect the cheque book at the branch and insisting on dispatching the same by courier after forcibly obtaining a declaration from the depositor that a dispatch by the courier is at depositor's risk is an unfair practice. Therefore Branches should refrain from obtaining such undertakings from depositors and ensure that cheque books are delivered over the counters on request to the depositors or his authorized representative.
28.4 ACCEPTANCE OF CHEQUES BEARING A DATE AS PER NATIONAL CALENDAR (SAKA SAMVAT) FOR PAYMENT
Government of India has accepted Saka Samvat as National Calendar with effect from 22 March 1957 and all Government statutory orders, notifications, Acts of Parliament, etc. bear both the dates i.e., Saka Samvat as well as Gregorian Calendar. An instrument written in Hindi having date as per Saka Samvat calendar is a valid instrument. Cheques bearing date in Hindi as per the National Calendar (Saka Samvat) should, therefore, be accepted for payment, if otherwise in order. Branches can ascertain the Gregorian calendar date corresponding to the National Saka calendar in order to avoid payment of stale cheques.
28.5 ISSUE OF MULTICITY CHEQUES / PAYABLE AT ALL BRANCHES :
In order to bring efficiency in the cheque clearing, it has been advised to issue only "payable at par" / "multi-city" CTS 2010 Standard cheques to all eligible customers without extra charges with appropriate Board approved risk management procedures based on risk categorization of accounts and not to charge the savings bank account customers for issuance of CTS-2010 standard cheques when they are issued for the first time.
29.1 ENTRIES IN PASSBOOKS / STATEMENT OF ACCOUNTS
- Constant attention by the branches is to be ensured for entry of correct and legible particulars in the pass books and statement of accounts. It should be ensured that brief, intelligible particulars are invariably entered in passbooks / statement of account
- Entries in depositors' passbooks / statements of accounts are often shown as "by clearing" or "by cheque". Further, it is observed that in the case of Electronic Clearing System (ECS) and RBI Electronic Fund Transfer (RBIEFT), details are not generally provided even though brief particulars of the remittance are provided by the receiving bank. In some cases, computerized entries use codes which just cannot be deciphered. With a view to avoiding inconvenience to depositors, such inscrutable entries in passbooks / statement of accounts should be avoided and it should be ensured that brief, intelligible particulars are invariably entered in passbooks / statement of account.
29.2 UPDATING PASSBOOKS
- Customers may be made conscious of the need on their part to get the pass-books updated regularly and employees may be exhorted to attach importance to this area.
- Wherever pass-books are held back for updating, because of large number of entries, paper tokens indicating the date of its receipt and also the date when it is to be collected should be issued.
- It is sometimes observed that customers submit their passbooks for updation after a very long time. In addition to the instructions printed in the passbook, whenever a passbook is tendered for posting after a long interval of time or after very large number of transactions, a printed slip requesting the depositor to tender it periodically should be given.
29.3 ADDRESS / TELEPHONE NUMBER OF THE BRANCH IN PASS BOOKS / STATEMENT OF ACCOUNTS
Branches are advised to ensure that full address / telephone number of the branch is invariably mentioned on the passbooks / statement of accounts issued to the account holders.
29.4 MAINTENANCE OF SAVINGS BANK PASS BOOKS - PRECAUTIONS
Negligence in taking adequate care in the custody of savings bank pass books facilitates fraudulent withdrawals from the relative accounts. A few precautions in this regard are given below:
- Branches should accept the pass books and return them against tokens.
- Pass books retained with the branches for updation should be held in the custody of named responsible officials.
- While retaining the pass books with the branch, they should be held under lock and key overnight and not left in open unattended on the counter.
29.5 PROVIDING MONTHLY STATEMENT OF ACCOUNTS.
- Branches may ensure that they adhere to the monthly periodicity while sending statement of account
- The statements of accounts for current account holders may be sent to the depositors in a staggered manner instead of sending by a target date every month. The customers may be informed about staggering of the preparation of these statements. Statements may be provided by mails as per the request OR made available on mobile.
- Inspecting Officers to carry out sample check at the time of internal inspection of branches to verify whether the statements are being dispatched in time.
29.6 PRINTING OF MICR CODE AND IFSC CODE ON PASSBOOK / STATEMENT OF ACCOUNT
The Magnetic Ink Character Recognition (MICR) code is necessary for all Electronic Clearing Service (ECS - Credit and Debit) transactions and the Indian Financial System Code (IFSC) is a pre-requisite for National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) transactions. At present, this information is made available on the cheque leaf along with the IFSC code of the branch. These are also to be provided in all passbooks / statements of accounts.
30. TRANSFER OF ACCOUNT FROM ONE BRANCH TO ANOTHER
Instructions of a customer for transfer of his account to another office should be carried out immediately on receipt of, and in accordance with his instructions. It should be ensured that along with the balance of the account, the relative account opening form, specimen signature card, standing instructions, etc., or the master sheets wherever obtained, are also simultaneously transferred, under advice to the customer. No Account should be transferred to another branch within six months of opening of account. When the account is to be transferred out of the zone, having balance of above Rs.10 lacs permission of Zonal Head is required.
The account transfer form with the enclosures may be handed over to the customer in a sealed cover if he so desires for delivery at the transferee office / branch. However, the transferee office should also be separately supplied with a copy of the account transfer letter along with copies of forms for comparing with originals.
When an office receives an enquiry from a customer regarding the receipt of his account on transfer from another office it should take up the matter with the transferor office by electronic means, in case it has not received the balance of the account and/or other related papers even after a reasonable transit time of not more than a week.
31. MINIMUM BALANCE IN SAVING BANK ACCOUNTS:
At the time of opening the accounts, branches should inform their customers in a transparent manner the requirement of maintaining minimum balance and levying of charges, etc., if the minimum balance is not maintained. Any charge levied subsequently should be transparently made known to all depositors in advance with one month's notice. The branches should inform, at least one month in advance, the existing account holders of any change in the prescribed minimum balance and the charges that may be levied if the prescribed minimum balance is not maintained. Branches are not permitted to levy penal charges for non-maintenance of minimum balances in any inoperative account.
31.1 LEVY OF PENAL CHARGES WITH EFFECT FROM 01.04.2015
Levy of penal charges on non-maintenance of minimum balance in saving bank accounts shall be subject to the following guidelines :
- In the event of a default in maintenance of minimum balance, the bank should notify the customer clearly by SMS/email/letter etc. that in the event of the minimum balance not being restored in the account within a month from the date of notice, penal charges will be applicable.
- In case the minimum balance is not restored within a reasonable period, which shall not be less than one month from the date of notice of shortfall, penal charges may be recovered under intimation to the account holder.
- The penal charges should be directly proportionate to the extent of shortfall observed. In other words, the charges should be a fixed percentage levied on the amount of difference between the actual balance maintained and minimum balance as agreed upon at the time of opening of account.
- It should be ensured that the balance in the savings account does not turn into negative balance.
32. REMITTANCE OF FUNDS FOR VALUE OF Rs 50,000/- AND ABOVE
Branches should ensure that any remittance of funds by way of demand drafts/mail transfers / telegraphic transfers or any other mode and issue of travelers cheques for value of Rs 50,000 /- and above is effected only by debit to the customer’s account or against cheques or other instruments tendered by the purchaser and not against cash payment. In the current scenario, where the integrity of the financial system in general and the banking channels in particular is of paramount importance, breach of these guidelines is a matter of serious regulatory concern in view of the wide ranging ramifications. Any violation of these instructions will be viewed seriously.
33. ACCEPTANCE OF CASH OVER THE COUNTER :
Banking, by definition, means acceptance of deposits of money from the public for the purpose of lending and investment. As such, banks cannot design any product which is not in tune with the basic tenets of banking. Further, incorporating such clauses in the terms and conditions which restrict deposit of cash over the counters also amounts to an unfair practice.
Branches are therefore advised to accept cash over the counters from all their customers who desire to deposit cash at the counters.
34. 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 locker, the bank will release the contents of locker to the legal heirs against indemnity on the lines as applicable to deposit accounts.
35. SERVICE AT THE COUNTERS
35.1 CHANGES IN BANKING HOURS
No particular banking hours have been prescribed by law and a bank may fix, after due notice to its customers, whatever business hours are convenient to it i.e., to work in double shifts, to observe weekly holiday on a day other than Sunday or to function on Sundays in addition to the normal working days, subject to observing normal working hours for public transactions.
If any of the branches want to close on a day other than a public holiday, they have to give due and sufficient notice to all the parties concerned who are or are likely to be affected by such closure. What is sufficient for due notice is a question of fact, depending on the circumstances of each case. It is also necessary to avoid any infringement of any other relevant local laws such as Shops and Establishment Act, etc.
Further, the provisions, if any, in regard to the banks' obligations, to the staff under the Industrial Awards / Settlements, should be complied with. Clearing House authority of the place should also be consulted in this regard.
Branches in rural areas can fix the business hours (i.e. number of hours, as well as timings) and the weekly holidays to suit local requirements. This may, however, be done subject to observing normal working hours for public transactions.
35.2 COMMENCEMENT / EXTENSION OF WORKING HOURS
Commencement of employees' working hours 15 minutes before commencement of business hours could be made operative by banks at branches in metropolitan and urban centres. This should be implemented taking into account the provisions of the local Shops and Establishments Act.
The branch managers and other supervising officials should, however, ensure that the members of the staff are available at their respective counters right from the commencement of banking hours and throughout the prescribed business hours so that there may not be any grounds for customers to make complaints.
It should be ensured that no counter remains unattended during the business hours and uninterrupted service is rendered to the customers. Further, branches should allocate the work in such a way that no Teller counter is closed during the banking hours.
All the customers entering the banking hall before the close of business hours should be attended to.
35.3 EXTENDED BUSINESS HOURS FOR NON-CASH BANKING TRANSACTIONS
Banks should extend business hours for banking transactions other than cash, up till one hour before close of the working hours.
The following non-cash transactions should be undertaken by banks during the extended hours, i.e., up to one hour before the close of working hours:
(a) Non-voucher generating transactions :
- Issue of pass books/statement of accounts;
- Issue of cheque books ;
- Delivery of term deposit receipts/drafts;
- Acceptance of share application forms;
- Acceptance of clearing cheques;
- Acceptance of bills for collection.
(b) Voucher generating transactions:
- Issue of term deposit receipts;
- Acceptance of cheques for locker rent due;
- Issue of travellers cheques;
- Issue of gift cheques;
- Acceptance of individual cheques for transfer credit.
Such non-cash transactions to be done during the extended business hours should be notified adequately for information of the customers.
Branches in urban/metropolitan centre can have evening counters at their existing premises for providing facilities to the public beyond the normal hours of business so as to bring about improvement in customer service. It is necessary that in such cases the transactions conducted during such extended hours of business are merged with the main accounts of the branch where it is decided to provide the aforesaid facilities
The above branches should give due notice to their constituents about the functions to be undertaken during the extended banking hours through local newspapers, as also by displaying a notice on the notice board at the branch(es) concerned. Further, as and when the hours of business of any of the branches are extended, the clearing house concerned should be informed.
36. ACCEPTING STANDING INSTRUCTIONS OF CUSTOMERS
Standing instructions should be freely accepted on all current and savings bank accounts. The scope of standing instructions service should be enlarged to include payments on account of taxes, rents, bills, school / college fees, licences, etc.
37. ROUNDING OFF OF TRANSACTIONS
All transactions, including payment of interest on deposits/charging of interest on advances, should be rounded off to the nearest rupee i.e., fractions of 50 paise and above shall be rounded off to the next higher rupee and fraction of less than 50 paise shall be ignored. However, it should be ensured that cheques/drafts issued by clients containing fractions of a rupee are not rejected or dishonoured by them.
38.CODE OF BANK'S COMMITMENT TO CUSTOMERS
Branches should follow various provisions of the Code of Bank's Commitment to Customers, implementation of which is monitored by the Banking Codes and Standards Board of India (BCSBI).
39. CLARIFICATION ON OPERATIONAL MATTERS
MD & CEO/Executive Director are authorized to issue clarifications on all operational matters relating to this Policy. Bank also reserves the right to modify policy issues from time to time.
1. The Officially Valid Documents (OVDs) : As per PMLA the OVDs means:
- As per PMLA the OVDS means
( i) The Passport
( ii) The Driving Licence
(iii) The Permanent Account Number (PAN) card
(iv) The Voter’s Identity card issued by Election Commission of India
(V)Job card issued by NREGA duly signed by an officer of the state Government
(Vi) letter issued by the National Population Register containing details of name and address
- 2. OVDs for ID proof for simplified procedure
- i) Identity card with applicant’s photograph issued by Central/State Government departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, and Public Financial Institutions.
- ii) Letter issued by a gazette officer, with a duly attested photograph of the person.
3. OVDs for address proof for simplified procedure
- i) Utility bill which is not more than two months old of any service provider (Electricity, Telephone, Postpaid Mobile phone, Piped gas, Water bill)
- ii) Property or Municipal receipt
- iii) Bank account or Post office savings bank account statement.
- iv) Pension or family pension payment order(PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the addresses.
- v) Letter of allotment of Accommodation from employer issued by Central Govt. Departments, Statutory Regulatory Bodies, PSUs, SCBs, FIs & listed companies. Similarly Leave & Licence agreements with such employers allotting official accommodation.
- vii) Documents issued by Govt. Departments of Foreign Jurisdictions and letter issued by Foreign Embassy or Mission in India.
Documents to be obtained while establishing relationship with customers as amended vide Gazette Notification of Govt. of India dated 01.06.2017
||Type of Customers
||Documents required for account based relationship with Banks
||Accounts of Individuals
||a) From an individual who is eligible for enrolment of Aadhaar, the Aadhaar number; the Permanent Account Number (PAN) or Form No. 60 as defined in Income-tax Rules, 1962, as amended from time to time;
- The Aadhaar number issued by the UIDAI
- The PAN or Form 60 as defined in Income Tax Rules 1962 and such other documents including in respect of the nature of business and financial status of the customer as may be required by the Bank.
Where an Aadhaar number has not been assigned to a customer, he/she shall furnish proof of application of enrolment for Aadhaar wherein the enrolment is not older than 6 months and in case PAN is not submitted, one certified copy of an “officially valid documents (OVDs)” containing details of identity & address & one recent photograph shall be submitted.
A document shall be deemed to be an “Officially valid documents” even if there is a change in the name subsequent to its issuance, provided it is supported by a marriage certificate issued by the State Government or a Gazette notification, indicating such change of name. [Ref: RBI notification No. DBR.AML.BC.No.46/14.01.001/2015-16 dated 29.10.2015]
Provided further, that from an individual, who is a resident in the State of Jammu and Kashmir or Assam or Meghalaya, and who does not submit Aadhaar or proof of application of enrolment for Aadhaar, the following shall be obtained:
i. certified copy of an OVD containing details of identity and address and
ii. one recent photograph
b) From an individual who is not eligible to be enrolled for an Aadhaar number, or who is not a resident, the following shall be obtained;
i) PAN or Form No. 60 as defined in Income-tax Rules, 1962, as amended from time to time.
ii. one recent photograph and
iii. A certified copy of an OVD containing details of identity and address.
Provided that in case the OVD submitted by a foreign national does not contain the details of address, in such case the documents issued by the Government departments of foreign jurisdictions and letter issued by the Foreign Embassy or Mission in India shall be accepted as proof of address.
c) In case the identity information relating to the Aadhaar number or Permanent Account Number submitted by the customer does not have current address, an OVD shall be obtained from the customer for this purpose.
“Provided that in case the OVD furnished by the customer does not contain updated address, the following documents shall be deemed to be OVDs for the limited purpose of proof of address:-
- utility bill which is not more than two months old of any service provider(electricity, telephone, post-paid mobile phone, piped gas, water bill);
ii. property or Municipal tax receipt;
iii. pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;
iv. letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation;
Provided further that the customer shall submit Aadhaar or OVD updated with current address within a period of three months of submitting the above documents.”
||Accounts of companies
- Certificate of Incorporation
- Memorandum and Articles of Association
- A Resolution from the Board of Directors and power of attorney granted to its managers, officers or employees to transact on its behalf; and
- Identification information as mentioned in SI No.1(Accounts of Individuals) in respect of managers, officers or employees holding an attorney to transact on its behalf.
||Accounts of Registered partnership firms
- Registration certificate;
- Partnership deed; and
- Identification information as mentioned in SI No.1(Accounts of Individuals) in respect of persons holding an attorney to transact on its behalf.
||Accounts of trust & foundations
- Registration Certificate;
- Trust Deed; and
- Identification information as mentioned in SI No.1(Accounts of Individuals) in respect of persons holding an attorney to transact on its behalf.
||Accounts of Unincorporated association or body of individuals (Partnership Firm or Trusts or Foundations etc.)
- Resolution of the managing body of such association or body of individuals;
- Power of Attorney granted to him to transact on its behalf;
- Identification information as mentioned in SI No.1(Accounts of Individuals) in respect of persons holding an attorney to transact on its behalf.
iv) Such information as may be required by the Bank to collectively establish the legal existence of such an association or body of individuals.
||Accounts of Proprietorship concerns
||1. Identification Information as mentioned in SI No.1(Accounts of Individuals) in respect individual (proprietor) to be obtained
2. In addition to the above, any two of the following documents as a proof of business activity in the name of proprietary firm shall also be obtained:
- Registration certificate (in the case of a registered concern)
- Certificate/License issued by the Municipal Authorities under Shop & Establishment Act
- Sales and Income tax returns
- CST/ VAT/GST certificate
- Certificate/Registration document issued by Sales Tax/Service Tax/Professional Tax Authorities
- IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT/Licence/certificate of practice issued in the name of the proprietary concern by any professional body in corporate under a statute.
- Complete Income Tax Return (not just the acknowledgement) in the name of the sole proprietor where the firm’s income is reflected, duly authenticated/acknowledged by the Income Tax Authorities.
- Utility bills such as electricity, water and landline telephone bills.
||Accounts of Self Help Groups(SHG)
||KYC verification of all the members of self-help groups (SHGs) is not required while opening the savings bank accounts of the SHG and KYC verification of only the officials of the SHGs would suffice. No separate KYC verification is needed at the time of credit linking the SHG. (RBI circular DBOD.AML.No.3365/14.01.001/2014-15 dated 4th September 2014).
||Accounts of Juridical persons such as Govt. or its Departments, Societies, Universities, and Local Bodies like Village Panchayat etc
||Certified copies of the following documents to be obtained:
- Document showing name of the person authorized to act on behalf of the entity.
- Aadhaar/PAN/Officially valid documents(OVDs) for proof of identity and address in respect of the person holding a power of attorney to transact on its behalf
- Such documents as may be required by the Bank to establish the legal existence of such an entity/juridical person.
|For details please refer “Policy Document on Know Your Customer (KYC) norms/Anti Money Laundering (AML) Standards/Combating of Financing of Terrorism (CFT)“ and our Bank’s Circular No. CHO/COMP/03/2017-18 dated 06.01.2018 and CHO/COMP/02/2018-19 dated 19.05.2018.