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Policy for Deposit Renewal and Pre closure
1. Renewal of
deposits within six months from the date of maturity:
The depositor shall be given the following two options either to
i) renew the
deposit from the date of maturity at the rate applicable on the
date
of maturity or
Ii) renew the deposit from the date of
surrendering the deposit receipt at the rate applicable on the
date of surrendering the deposit for renewal. In this case the
interest rate for the overdue period i.e. the period between the
date of maturity and the date of surrendering the deposit
receipt for renewal shall be paid at the Interest rate prevalent
on the date of maturity
2. Renewal of
deposits after six months but before the end of two year.
a) For renewal of deposits
The deposit can be renewed only from the date of surrendering
the deposit
receipt for renewal. It cannot be renewed from the date of
maturity.
b)
Interest rate
a.
The deposit shall be renewed at the rate of interest prevalent
on the date of handing over the deposit for renewal
b.
The rate of interest for the overdue period be paid at the rate
which is the least of the following:
i)
the rate of interest as on the date of maturity and
II)
the rate of interest as on the date of handing over the
deposit
receipt for renewal
3. Renewal of
deposits after two years from the date of maturity
a) Renewal of
deposits
The deposit shall be renewed only from the date of tendering the
deposit receipt to the bank for renewal
b) Interest Bate
The, deposit shall be renewed at the rate of interest prevalent on
the date of handing over the deposit receipt for renewal.
c) Interest for overdue period
Rate of Interest as applicable to Savings Bank account shall be paid
for the overdue period. The above clause (3) can be relaxed
for deposit receipts lodged with the Registrar of Chits. IT purpose
and similar other cases, provided a letter from the department was
tendered before the date of maturity to the effect that the deposit
receipt is held I lodged with them for a specific purpose.
II. a. POLICY ON
INTEREST ,PAYABLE ON PRE- MATURE WITHDRAWAL OF DOMESTIC TERM
DEPOSIIS
Whenever a domestic term deposit is requested to be closed before
the completion of the period originally agreed. We may pay 1 % less
than the rate of Interest applicable for the period for which the
deposit was kept. In, case of reinvestment deposits, such Interest
may be compounded on a quarterly basis.
However if the deposit is withdrawn before the expiry of minimum
required period (now it Is 14 days) interest need not be paid.
b• POLICY ON PRE-CLOSURE OF
DEPOSITS FOR AVAILING HIGHER RATE OF INTEREST
The bank shall allow pre-closure of deposits by the depositors for
the purpose of placing them again as deposits for the purpose of
availing the benefit of hike in interest rate, if any , at any time
without reducing the interest by way of penalty provided such
deposit is , renewed for a period longer than the remaining period
of the original deposit. 'However the Interest as applicable for the
completed period as on the date of pre~c1osure shall alone be paid
for such deposit before
renewal.
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