Recurring Deposit Accounts
How to open a Recurring Deposit Account:
A recurring deposit account may be opened for periods of 12,24,36,48,60 and up to 120 months, in multiples of Rs.100/- per month. More than one account can also be opened in the name of the same person.
Who may open a Recurring Deposit Account:
A recurring Deposit may be opened by a person in his or her name (ii) more than one person payable to jointly or to either or any one or more of them or Survivor or Survivors (iii) by a natural guardian, i.e.father or mother on behalf of a minor in which case the date of birth should be declared at the time of opening of account or by a guardian appointed by Court and (iv) a Co-operative Society through the persons authorized by its Board of Directors.
Terms of deposits:
The account can be opened on any day in a month. But every subsequent instalment is due for payment by the last day of every calendar month.
Payment of monthly instalments:
Every Depositor shall pay the monthly deposit amount before the end of the month. Standing instructions from the Depositor for transfer of monthly instalments from his/her savings Bank or Current accounts till the deposit matures will be accepted by the Bank and such transfers will be effected by the Bank, free of the charge.
In case of delay in payment of any instalment a penalty will be charged; which is at present Rs.1.50 for every Rs.100/- per month for deposits of 5 years or less and Rs.2/- for every Rs.100/- per month for deposits of over 5 years; fraction of a month being treated as a full month for the purpose of calculating penalty. However the penalty will be waived in case of defaulted instalments if there is equal number of advance payment of instalments.
Each Depositor will be supplied with a pass book of such deposit in which the payment made in each month will be entered and acknowledged by the officer of the Bank.
Repayment on maturity:
Recurring deposit is repayable 30 days after the last instalment is due and paid or after the expiry of the period for which the deposit is accepted, whichever is later.
Loan on Recurring Deposits:
The Bank may grant loans on the security of Recurring deposit accounts up to 80% of the amount of deposit including interest occurred on the loan account. Interest will be levied at 2% higher than the rate of interest paid on the deposit.