FIXED DEPOSIT RULES

Fixed deposit Account rules

Application for fixed/short deposits and deposits at notice is taken on Form for individuals and non-individuals.
All time deposit accounts shall be properly introduced. For all subsequent deposit, a simple Application-cum-Deposit slip is to be filled.

Period and minimum amount of different types of deposits

Operational instructions

Term deposit accounts can be opened with instructions payable to 'Self ' , payable to ’either or Survivor', payable jointly, payable to any one of the depositors etc. It can also be opened with instructions payable to "Former or Survivor" or "Former, Survivors Jointly or Last Survivor" or "Latter or Survivor" in which case operational/ payment instructions at the time of opening the account or subsequent variations, if any, in these instructions, should be signed by all the joint depositors

Deposit accounts of minors

In sole name – if the minor is above 10 years and below 18 year old can read and write
In joint name with natural guardian if minors are less than 10 years of age
The maximum amount that can be accepted for deposit in such account is. 1, 00,000/-. However, there is no limit for accepting deposits from minors above the age of 14 years.

Renewal of deposits - Requirements

Deposit will be automatically renewed for the same period and with current interest rate for period of deposit if no specific instruction from account holder.
Duly discharged fixed/short deposit receipt along with request for renewal
Where receipts are held in safe custody or where only acknowledgement is issued in lieu of the deposit receipt, discharge not required.
Where receipts are lodged with the government departments, as security in lieu of earnest money etc. and the concerned authorities
No fresh receipt is issued. Endorsements made on the space provided on the existing FDR

Payment of deposit receipt/s on due date

Deposit receipt/s duly discharged by all the depositors (on revenue stamp in case of cash payment up to 20,000/-) with clear payment instructions is to be given
No cash payment of Matured Deposit Receipt amounting more than Rs. 20000/- aggregrating The amount of maturity value in case of deposit under cumulative deposit scheme, and the principal amount along with the residual interest, if any will be paid by
Credit of depositors account with the Bank.
Credit of depositors account with any other Bank through NEFT / RTGS
Issuance of DD / Bankers Cheque as per instruction of the depositor

Payment to a third party/nominee/legal heir

Nominee vis-à-vis legal heirs

If on the death of the depositor, both the nominee and the legal heir make their claims simultaneously in respect of the deposit, the bank would take note of the legal heir holding succession certificate.
However, such legal heirs are advised to bring from the court an injunction restraining the bank from effecting payment to the nominee/s.
The Bank will get valid discharge by paying the nominee so far as any legal heir has not produced, in the meanwhile, any decree, order, certificate or other authority from a court of competent jurisdiction

Prepayment of deposits

The deposit receipt duly discharged and the letter of request for prepayment signed by all the depositors are required. Normally on prepayment a penalty of 1% below the interest rate ruling on the date of making deposit for the period for which deposit has actually run is deducted.

Waiver is allowed where

Rules regarding payment of interest on time deposits

Interest accrued on a time deposit, would ordinarily be paid, only on maturity. However, at the request of the depositor, interest on deposits of -12- months and over, can be paid before maturity on the following basis

Monthly, quarterly , half yearly or yearly interest on completion of the month / quarter / half year / yearly calculated from the date of deposit or end of each calendar month / quarter / half year / yearly, whichever is later.
For calculation of interest on term deposits for periods < 12 months, the following procedure would be adopted
On deposits for period up to -182- days, the interest is calculated for the actual number of days on the basis of -365- days in a year
On deposits for period more than -182- days, the interest is calculated on monthly basis for the completed months and for residual period, on actual number of days.
Standing Instructions are accepted for credit of periodical interest in case of monthly / quarterly / half yearly / yearly interest on deposits to customers Current / Savings Bank account

Higher rate of interest to Senior Citizens

An additional rate of interest @ 0.25% on the Term Deposit having period more than 15 months only. (including Recurring Deposits and Term Deposits under other schemes) of senior citizens

Procedure in case of lost receipts:-
An application from the depositor is to be given.
An indemnity bond is to be obtained in the prescribed form in all cases.
One or two surety/ies considered good for the amount involved, must execute the indemnity along with the depositor/s.
If the deposit is renewed for a further period of at least 12 months or where the depositors maintain other well conducted accounts. At the discretion of bank.

Addition or deletion of name in fixed deposit receipts and recurring deposit accounts

If the existing depositors makes a request either to add the name of a close relative (his consent should be obtained) or delete the name of one of the existing joint accountholders (he should also sign the letter of request), the same are allowed, as per under mentioned procedure –

A letter signed by the depositor/all the joint depositors should be given requesting the Bank to add the name of a relative/ friend or to delete the name of one of the existing joint depositors. However, a substitution of name is not permitted
Fresh account opening form and KYC documents incorporating revised operational instructions, signed by the following should be obtained:-

In case of addition, the existing depositor/s and the person whose name is to be added and
In case of deletion the existing depositors accept the person whose name is to be deleted.

The fact of addition of the name or deletion of the name of one of the joint depositors, will be noted on the relative deposit receipt under authentication along with the date of such addition / deletion.
Fresh deposit receipt will not be issued
In case of demise of one of the depositors, the request for deletion of his name should be in writing supported by the death certificate, signed by all the surviving depositors giving revised operational instructions. If the surviving depositor/s’ request/s to add name/s of relative/s, such request may be acceded to and the additions may be made on the receipts.
Deletion of name of joint accountholder/s in case of operational instruction - Payable to Former or Survivor, latter or Survivor or Former, Survivors jointly or the Last Survivor is not permitted.

Mode of payment of time deposits

In terms of Income Tax Act, 1961 as amended, where aggregate amount of all deposits repayable after notice or repayable after a period (i.e. all time deposits including matured time deposits) held by a person singly or jointly with others at a branch of the Bank together with interest to be paid on such deposits (i.e. excluding interest already paid) is Rs. 20,000/- or more, the repayment will be made by means of "A/c Payee" Banker's Cheque/draft or by crediting the account of such depositor. Payment of periodical interest can be made in cash. (Subject to RBI guideline & Income Tax act)

Safe custody of deposit receipts

Deduction of Income Tax at source from payment of interest on time deposits (Section 194A of Income Tax Act 1961) (Sec.194A):

Section 194A deals with deduction of TDS form interest on time deposits. For this purpose time deposit means deposits repayable on the expiry of a fixed period i.e. Fixed Deposit (including recurring deposits).
Section 194A deals with payments made to resident
From F.Y. 2019-20 onwards Income tax is to be deducted in cases where the total interest paid or credited on all time deposits with a branch in the name of a depositor, whether singly or jointly (as first named person) exceeds Rs. 40,000/- in a financial year.
From F.Y. 2018-19 onwards no TDS will be deducted on interest earned up to Rs. 50,000/- by senior citizens.

SMA AND NPA NOTICE

AGM NOTICE 2022-23

IFSC CODE : ICIC00ICBLP