Major Features of the ‘UCO GREEN DEPOSITS’ fixed deposit scheme:
What is ‘UCO Green Deposits’ ?
A key mode of green finance that has progressively gained traction is ‘Green Deposit’. Green deposit refers to an interest-bearing deposit, received by a Regulated Entity for a fixed period and the proceeds of which are earmarked for being allocated towards financing green activities and projects for developing green finance ecosystem in the country. UCO Bank has launched ‘UCO GREEN DEPOSITS’ fixed deposit scheme with the objective to mobilize green resources for financing green initiatives.
Deposit Duration
12 Months
1000 Days
2000 Days
3000 Days
Deposit Amount
Minimum: Rs. 10000/- Maximum: Unlimited (i.e No upper cap)
Rate of Interest
a) For Retail Deposits (Less than Rs. 3.00 Cr): Applicable Card Rate + 0.20%,
Tenor
Rate
Effective ROI%
12 Months
Applicable Card Rate for Retail Deposits + 0.20%
6.45% (Card Rate+20 bps)
1000 Days
6.35% (Card Rate+20 bps)
2000 Days
6.20% (Card Rate+20 bps)
3000 Days
6.20% (Card Rate+20 bps)
b) For Bulk Deposits i.e Rs. 3.00 Cr and above: Rate of Interest will be 0.10% less than applicable card rate
Special benefits for Senior Citizen/ Staff / Ex – Staff / Senior Citizen & Ex – Staff
Additional rate of interest over the general applicable rates for these special categories are available for Retail Term Deposits (< Rs. 3.00 Cr) as per the Bank’s existing norms.
Available with premature penalty clause as per Bank’s extant guidelines.
Nomination facility
Available as per Bank’s extant guidelines.
Automatic Renewals
No Auto renewal facility will be allowed for this scheme. Customer will give the mandate to transfer the maturity proceeds to his/her SB/CA of the depositors.
Tax Implications
Tax will be deducted at source as per the prevailing Income Tax Rules.
A long term fixed deposit scheme. Interest is compounded every quarter by way of reinvestment. Thus the scheme generates a large sum of money at the time of maturity. The scheme meets the need for a safe long term investment.
The Key features of the Scheme are : -
The minimum amount of deposit is Rs.1000/-
The minimum period of deposit is 6 months.
The maximum period of deposit is 120 months.
Interest is compounded under the scheme at quarterly intervals.
The scheme would be open for the general public from 16th December 2013 and the scheme has been converted into normal term deposit scheme.
Eligibility to Open Account
Eligible Depositors under the scheme would be same as eligible depositors Fixed Deposit Scheme currently available in the Bank.
KYC (Know your Customers)
KYC Norms for opening account are applicable for these accounts and hence proof of residence and proof of identification will be required along with recent photograph of the depositor/s.
Period of Deposit
5 years
Amount of Deposit
a) Minimum Amount: Rs. 50,000 (thereafter in multiples of Rs.10000/-)
b) Maximum Amount: Upto Rs.100 lac
Rate of Interest
As applicable under the normal term deposit for a period of 5 years
Payment of Interest
Monthly Interest Plan - Simple Interest rate will be paid without any discounting and credited on the first day of the next month of opening 'UCO Monthly Income Scheme'.
Premature Withdrawal
In all cases of premature withdrawals, the interest would be payable at 1 % below the applicable card rate under the normal fixed deposit has remained with the Bank as on the date of deposit and not at the contractual rate.
Loan/Overdraft against the Deposits
Facility for availing loan/overdraft against 'UCO Monthly Income Scheme' would be available as per existing guidelines for availing loan/overdraft against Bank's own Fixed Deposits.
Nomination
The facility of nomination would be available under the scheme.
Payment to Nominee/ Legal Heirs
In the event of the death of the depositor, the deposit would be paid to nominee/legal heirs as per existing rules.
Participating Branches
All branches of the Bank would be authorized to open 'UCO Monthly Income Scheme' accounts under the Scheme.
Application Form
The existing Application Form for fixed Deposits is to be used for accepting deposit under the scheme.
The branches shall invariably take an undertaking from customer stating that "I have read, understood and accept the terms & conditions of 'UCO Monthly Income Scheme'.
Automatic Renewals
In the absence of any specific mandate provided by the depositor at the time of opening of account, the maturity proceeds may be transferred to SB/CA of the depositor /renewed for a certain period at card rate of interest prevailing at the time of maturity.
Tax Implications
Tax would be deductible at source as per the prevailing Income Tax rules.
Transferability
The'UCO Monthly Income Scheme' is not transferable.
However, the deposits are transferable from one branch to another branch in the same name(s) would be permissible without any change and as per the existing Bank's procedure.
Special benefits for senior citizen/ staff/ Ex-staff/ Senior citizen Ex-staff
Deposits from under-mentioned categories of depositors shall be allowed incentive as per the existing norms.
Acceptance of Deposit under the scheme
Deposits under the scheme would be accepted only when accruing as a fresh Fixed Deposit for the Bank.
In other words, the existing Fixed Deposits cannot be directly renewed under the scheme through a premature extension as usual and the existing Fixed Depositors who wish to convert into the scheme would have to compulsorily take premature payment of their existing deposits and pay the usual penal charge for pre mature closure.
However, any existing Fixed Deposit maturing during the scheme period would be eligible to enter into the scheme as it would be a fresh deposit for the Bank under the scheme.
Applicability of normal Fixed Deposit Rules
Other than the special terms and conditions of the scheme, the deposits under the scheme would be governed as per the normal Fixed Deposit Rules of the Bank.
Product Code under CBS
A separate Product Code under the CBS system for the scheme would be created by Head Office, DIT.
Further, Head Office, DIT would be circulating the "Job Card for 'UCO Monthly Income Scheme' containing the guidelines for the branches for opening the required account in CBS for operationalizing the scheme.
UCO Tax Saver Deposit Scheme 2006 is a Term Deposit Scheme with maturity of not less than 5 years subject to lock in period of 5 years.
Who can open the Account -
An individual for himself
Hindu undivided family ;
Jointly by two adults or jointly by an adult and a minor, and payable to either of the holders or to the survivor :
In the case of deposits in joint names, the benefit under section 80C of the Income Tax Act shall be available only to the first holder of the deposit.
Amount of Deposit -
Minimum Rs.100/- and maximum Rs.1.5 lac in a year (1st April to 31st March).
Period of deposite and payment on maturity -
The period of deposit under the scheme shall be not less than five years.
Rates of interests on Fixed Deposits under the UCO TAX SAVER Scheme, where the deposit has to be essentially kept for a period of 5 years, will be the rate for term deposit for a period of 5 years.
Category of Deposit
Rate of Interest % pa
General
5.00%
Sr. Citizen/Staff/Ex-staff/Ex-staff who is also Sr. Citizen
5.50%
All branches are advised to take note of the above changes in rates of interest for Domestic Term Deposits up to Rs. 5 Crore effective from 22.8.2011 on all fresh deposits as well as renewal of existing deposits.
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Income Tax Benefits -
Deposit under the scheme is eligible for deduction under Section 80C of the Income Tax Act upto a maximum limit of Rs.1.5 lac (subject to the overall ceiling of Rs.1.5 lac alongwith other deductions already available under 80C)
Nomination facility- available
Transfer from one branch to another -permitted. Inter bank transfer not allowed.
Loan against the deposit and Pledging of term deposit receipt - Not allowed
Issue of Duplicate Term Deposit Receipt - Duplicate receipts may be issued in accordance with the guidelines in this regard.
Applicability of Income Tax on Interest Income - Interest on these term deposits shall be liable to tax under the Income Tax Act.
Deposits are accepted under reinvestment plan with the difference that a part of the deposit can be prematurely encashed without affecting the remaining portion that continues to earn interest at the agreed rate. Withdrawal is allowed in multiples of Rs.5000/-. It is indeed a matchless scheme to take care of your emergency needs.
MACTDA (Motor Accident Claim Term Deposit Account)
A new Term deposit product “MACTDA”will have the following features:-
S.No.
Features
Particulars / Details
1
Type of Account
Motor Accident Claims Term Deposit Account (MACTDA) A new menu option “TERMDEP” has been customized for opening the term deposit account, as per period of deposit account will be automatically opened in two scheme code given as under: Scheme Code-178 (for TD more than 6 months)Scheme Code -179 (for less than or equal to 6 months)
2
Who can open
Beneficiaries or victims of Motor Accidents (as per court order).
3
Available at
At High Court Delhi Branch (1553) (However in case of requirement, it can be made available in any other branch in India).
4
Purpose
Lump sum amount of compensation as decided by the Court /Tribunal is deposited as term deposit, beneficiary will receive the same in number of Monthly Installments as decided by court, comprising of principal amount as well as interest amount.
5
Mode of Holding
Singly.
6
Period of deposit
Period of deposit will be same as mentioned in the court order; scheme doesn’t have any restriction on minimum & maximum duration.
7
Amount of deposit
Amount as per court order. (No restriction on minimum or maximum amount of deposit.)
8
Rate of Interest
Bank’s bucket-wise rate of interest on term deposit applicable for the period (number of months) as mentioned in court order would be applicable. Simple interest will be given up to 6 months, from 7th month compound interest will be given for all remaining months.
9
Mode of Remittance –Monthly installment
Monthly installment comprising of Principal plus interest (minus applicable TDS if any) will be credited to operative SB account (Scheme code-SB 136) of beneficiary in our bank linked with TD account, opened preferably in the same branch for specific purpose of crediting the monthly installment amount as per court order. In case, other bank’s SB account is mentioned in court order then monthly installment (principal plus interest) will be credited to linked operative SB account (Scheme code SB 137). Amount credited in SB 137 will be later on remitted to the other bank’s SB account through NEFT/RTGS.
10
Transfer of Account
Transfer of term deposit account not allowed as the account is opened in special scheme available in specific branch.
11
Pattern of deposit
Total amount of compensation released by court shall be divided by period (in months). Equal amount of principal will be paid with interest (after TDS deduction as per rule) on monthly installment basis. For example: In case of one beneficiary : Amount-2,40,000/- Period -24 Months Rate of interest -6.75% ( Bank’s interest rate applicable for 24 months) Monthly installment of Rs.10,000/- plus interest (minus TDS) First month –Rs.10000/-(240000/24)+interest Rs.56 (one month interest on Rs.10000)-TDS Second Month –Rs.10000+interest Rs.112 (two month on Rs.10000) –TDS and so on. From 7th month Rs.10000/- plus compound interest of 7 months on Rs.10000/- will be applicable & paid by the system. In case of two or more one beneficiaries : In case of three beneficiaries: 240000/3=80000 Principal Amt. Rs.80000/24=3333.33 Say 3333 (equal monthly installment of principal plus interest minus TDS will be credited to the individual respective beneficiary’s SB account i.e. in case of 3 beneficiaries equal amt. will credited to 3 separate account)
First
Second
Third
Rs.3333+intt. Rs.18/-(one month) –TDS
Rs.3333 +intt. Rs.36/- (Two months ) –TDS and so on
Rs.3333+intt. Rs.18/-(one month) –TDS
Rs.3333 +intt. Rs.36/- (Two months ) –TDS and so on
Rs.3333+intt. Rs.18/-(one month) –TDS
Rs.3333 +intt. Rs.36/- (Two months ) –TDS and so on
From 7th month Rs.3333/- plus compound interest of 7 months on Rs.3333/- will be applicable & paid by the system
12
Premature closure
Premature closure of term deposit is not allowed. In case, there is court order for premature closure of term deposit, it shall be done at branch level by closing each remaining Fixed deposit accounts one by one. Bulk closure of TD cannot be handled in CBS, therefore premature closure can be handled by branch by closing the remaining FDs one by one in system. Premature closure- penalty will not be charged. In case of death of the claimant, payment to be given to the nominee or as mentioned in the court order.
13
Passbook/Printed receipt of FDR
NO PHYSICAL FDR WILL BE PRINTED or ISSUED TO CUSTOMER. ALL FDRs WILL REMAIN IN THE SYSTEM and THE AUTO CLOSURE FLAG IS SET TO ‘YES’, THEREFORE ON MATURITY THE FD WILL BE CLOSED AND MATURITY AMOUNT WOULD BE CREDITED TO THE LINKED SB ACCOUNT OF BENEFICIARY. After opening of the TD account a report/statement will be generated ( as mentioned in Job-Card enclosed) having details of number of FDs opened in the name of beneficiary, i.e. principal amount, maturity amount, interest rate & period of deposit. One copy of report/statement will be handed over to hon’ble court & one copy will be handed over to beneficiary.
14
Loan Facility
No loan or advance shall be allowed.
15
Nomination facility
Nomination is available and will be same as given in the linked SB account or as directed by the court.
16
Tax deduction at source
Provision of TDS and NOTDS can be handled in the system as per prevailing Income –Tax rules.
Interest payment is subject to TDS as per Income Tax Rules.
The net of monthly instalment after TDS will be credited to the MACT Savings Bank account, on monthly basis.
In case, the beneficiary fails to submit PAN Card TDS will be deducted @ 20%.
17
Technology support
Product will be developed by Department of Information and Technology.
Following is the penal charges for pre-mafure withdrawal of Term Deposits, including RD and RDUSS given as under:
Sl. No
Term Deposits
Penal Charges
1
Less than Rs. 15 lacs
1% less than the applicable rate for which the deposits was held by the Bank as on the date of deposit or present rate whichever is lower
2
Rs. 15 lacs to less than Rs. 1 Crore
1% less than the applicable rate for which the deposit was held by the Bank as on the date of deposit or present rate whichever is lower.
3
Term deposit of Rs. 1 Crore and above
2% less than the applicable rate for which the term deposit of Rs. 1 Crore and above was held by the Bank as on the date of deposit or present rate as on the dote of premature closure whichever is lower.
Following is the penal charges for pre-mafure withdrawal of Term Deposits, including RD and RDUSS given as under:
Sl. No
Term Deposits
Penal Charges
1
Less than Rs. 15 lacs
1% less than the applicable rate for which the deposits was held by the Bank as on the date of deposit or present rate whichever is lower
2
Rs. 15 lacs to less than Rs. 1 Crore
1% less than the applicable rate for which the deposit was held by the Bank as on the date of deposit or present rate whichever is lower.
3
Term deposit of Rs. 1 Crore and above
2% less than the applicable rate for which the term deposit of Rs. 1 Crore and above was held by the Bank as on the date of deposit or present rate as on the dote of premature closure whichever is lower.
