Deposit Policy

1. Introduction
Suryoday Small Finance Bank (hereinafter referred to as “the Bank”), further to the objectives for
which it is set up, shall primarily undertake basic Banking activities of acceptance of deposits in
addition to lending to unserved and underserved sections including small business units, small and
marginal farmers, micro and small industries and unorganised sector entities. One of the important
functions of the Bank is to accept deposits from the public for the purpose of lending. In fact,
depositors are the major stakeholders of the Banking System. The depositors and their interests form
the key area of the regulatory framework for Banking in India.

This policy outlines the guiding principles in respect of formulation of various deposit products
offered by the Bank and terms and conditions governing the conduct of the account.

While adopting this policy, the Bank reiterates its commitments to individual customers outlined in
Bankers’ Fair Practice Code of Indian Banks’ Association and applicable regulatory requirements.

2. Objectives
The key objectives of this policy are as under:
• Lay down the framework on the types of deposits offered by the Bank and operations
permitted in these deposits.
• Disseminate information with regard to various aspects of acceptance of deposits from the
members of the public, conduct and operations of various deposits accounts, payment of
interest on various deposit accounts, closure of deposit accounts, method of disposal of
deposits of deceased depositors, etc., for the benefit of customers.
• Provide greater transparency in dealing with individual customers and create awareness
among customers of their rights with regards to deposit account.
• Ensure that the customer will get services they are rightfully entitled to receive without
demand.
• Institutionalize a mechanism for disposal of deposits in case of death of the depositor/s.

3. Types of Deposit Accounts

The Bank may choose to offer the following types of deposit products:

3.1 Demand Deposit

Demand Deposits means a deposit received by the Bank which is withdrawn on demand. There are
two types of Demand Deposits:

3.1.1 Savings Account

Savings Account means a form of interest bearing demand deposit which is a deposit account
whether designated as “Savings Account”, “Savings Bank Account”, “Savings Deposit Account”,
“Basic Savings Bank Deposit Account (BSBDA)” or other account by whatever name called which is
subject to the restrictions as to the number of withdrawals as also the amounts of withdrawals
permitted by the Bank during any specified period.
3.1.2 Current Account

Current Account means a form of non-interest bearing demand deposit where from withdrawals are
allowed any number of times depending upon the balance in the account or up to a particular agreed
amount and shall also be deemed to include other deposit accounts which are neither Savings
Deposit nor Term Deposit.

3.2 Term Deposit

Time deposit means an interest-bearing deposit received by the Bank for a fixed period and shall also
include deposits such as Recurring /Cumulative /Annuity /Reinvestment deposits and Cash
Certificates;

Within these categories, there are specific accounts that can be opened, based on the requirements
of the account holder. The Bank shall pay interest at quarterly rests to the depositor or compounded
quarterly. The Bank shall pay interest at the specific request of the depositor at monthly rests also,
but at a discounted rate.

The following are the illustrative types of Term Deposits:

3.2.1 Traditional Fixed Deposits

The deposits are held for a particular tenor at a contracted rate but interest is paid at a fixed
frequency.
• Deposits can be accepted for a period as prescribed by RBI from time to time ranging from 7 days
to 10 years.
• Interest shall be payable quarterly/ monthly (at discounted rate).
• Interest may be paid by cash (subject to certain conditions of Income Tax Act, 1961) or credited
to operative account or by issuance of DD.

3.2.2 Cumulative Term Deposit

The deposits are held for a particular tenor at a contracted rate, but interest is accumulated on
quarterly compounding basis and the consolidated amount is paid at the time of maturity.

• Deposits can be accepted for a period as prescribed by RBI from time to time ranging from 7 days
to 10 years.
• Interest is calculated on quarterly compounded rests. Interest on cumulative deposits is deemed
as reinvested and paid at maturity.
• No interest outflow is allowed under this scheme till the maturity of the Term Deposit.

3.2.3 Tax Savings Term Deposit

Tax savings Term Deposit is a term deposit wherein the customer gets a tax benefit under Income
Tax Act 1961 on the amount invested, although the interest paid on these deposits is taxable. This
deposit is maintained for a fixed tenor of 5 years and cannot be prematurely withdrawn. No loans
are permitted against such deposits.

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 3.3 Non-Resident Deposit

• The Bank offers Non-Resident Time Deposits, currently offered in rupee denominated NRE and NRO
Fixed Deposit variants
• NRE/NRO Fixed Deposit shall be offered to NRIs/PIOs/OCIs.
• Fixed Deposit shall be in the form of Cumulative Fixed Deposit, Traditional Fixed Deposit with
monthly/quarterly pay-out options.
• The rates offered on Non-Resident Deposits shall not exceed the rates for domestic deposits and
shall be as per the RBI guidelines.

3.3.1 NRE Term deposit

No interest will be paid if the NRE term deposit is liquidated before completion of one year.
No penalty shall be levied for premature withdrawal of NRE term deposits. The benefit of additional
interest rate on deposits on account of being Bank’s staff or senior citizen shall not be applicable
for NRI deposits.

4. Opening and Operation of Deposit Accounts

The Bank shall launch any new domestic deposit mobilisation with the approval of the Board
after ensuring compliance with the regulatory requirements.

4.1 Facilities for all Deposit accounts

The Bank shall provide its customers details of various types of Bank accounts that can be opened
and highlight the key features for each type of account. The Bank shall ensure that the product
material, brochures or any literature highlighting the terms and conditions as well as service charges/
fees of the product, is fair, clear and not misleading.

• The Branch staff/ BC agents or sub-agents of the Bank shall carry out due diligence as required
under “Know Your Customer” (KYC) guidelines issued by RBI and or such other norms or
procedures adopted by the Bank before opening any deposit account as defined in the KYC/AML
Policy of the Bank
• The Bank shall open accounts providing basic banking services to unbanked / disadvantaged
sections of the society with relaxed customer acceptance norms as per regulatory guidelines
• The Bank shall undertake due diligence process, while opening a deposit account which involves
identification of the person, verification of address, satisfying about his occupation and source
of income. The Bank shall obtain fresh photographs from the customer proposing to open the
account
• The Bank shall categorize customers based on the risk perception and prepare profiles of
customers for the purpose of transaction monitoring
• The Bank shall communicate to the customer the timeframe within which the account shall be
opened. In case, if the account opening requires clearance at higher level, the Branch staff shall
communicate the reasons for delay in opening of account
• The Bank shall provide the prospective depositor with account opening forms and other
material such as brochures indicating service charges, Code of Commitment to Customers. The
Bank official opening the account shall explain the procedural formalities and provide necessary
clarifications sought by the prospective depositor when he/she approaches for opening a
deposit account

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• The Bank shall communicate to the prospective depositor all details regarding terms and
conditions for operation of the accounts and schedule of charges and fees for various services
provided while opening the account or from time to time as the case may be. The applicants can
reach out to the branch or a Bank executive for any queries or clarification that they may have
in relation to account opening
• The Bank staff shall have the right to decline the opening of account if the account holder is not
able or willing to provide necessary information regarding his address or identity
• The Bank reserves the right, at its sole discretion, to open the bank account upon receipt of an
application, and at such terms, as the Bank may prescribe from time to time.

4.1.1 Minor Accounts

The Bank shall instruct their branches to allow minors’ accounts to be opened with guardians. The
Bank shall allow natural (mother or father) or legal guardians of the minor to operate the minor’s
account. The Bank shall not grant overdraft /loan to such minors. The Bank shall ensure that minor
accounts are not overdrawn and always remain in credit.

The Bank shall obtain from the account holder (erstwhile minor) on attaining majority, specimen
signature, identification documents and his/her latest photograph to commence operations of the
account.

Minors above the age of 10 will also be allowed to open and operate saving Bank account
independently.

4.1.2 Accounts for persons with disabilities/illiterate persons/visually impaired person

Accounts for illiterate persons

The Bank shall allow a person to open any accounts provided the applicant shall be accompanied
along with a witness, who is known to the Bank. The Bank shall not discriminate while opening
accounts for illiterate / blind and follow the guidelines of RBI from time to time.

The Bank official shall be present in case of persons with disabilities/ illiterate persons/ visually
impaired person visits the branch for withdrawals/ repayment of term deposit and the account
holder is required to affix his/ her thumb impression/ mark. The Bank shall allow operations in the
account as elaborated in the Code of Commitment to Customers/ Customer Service Policy of the
Bank.

Disabled persons who are unable to write

The Bank shall open bank account for persons with disabilities and unable to write but capable of
affixing thumb impression/ toe mark or any other mark or impression. The Bank shall allow the
account holder/ any other person to operate the account subject to the conditions as mentioned in
the Code of Commitment to Customers/ Customer Service Policy of the Bank.

Blind/Visually Impaired Person

The Bank shall ensure that there is no discrimination in offering any facility to a blind/ visually
impaired person and shall allow all banking facilities such as cheque book facility including third party
cheques, ATM facility, Net banking facility, locker facility, retail loans, credit cards, etc. to be offered
to such customers.

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Under-Guardian accounts for Disabled (adult) persons with autism, cerebral palsy, mental
retardation and multiple disabilities:

The Bank shall allow opening of accounts of persons with Autism, Cerebral Palsy, Mental Retardation,
Mental Illness and Mental Disabilities after appointing guardian/ managers and shall also take note
of the legal position and orders/ certificates issued by the competent authority, under the acts
applicable to such account holders.

Accounts of Transgender persons

In terms of judgement dated April 15, 2014 of the Supreme Court in the case of National Legal
Services Authority v. Union of India and others [AIR 2014 SC 1863: (2014) 5 SCC 438] on treating all
transgender persons as ‘third gender’, the Supreme Court upheld transgender persons’ right to
decide their self-identified gender and directed the Centre and State Government to grant legal
recognition of their gender identity such as male, female or as third gender.
The Bank shall include ‘third gender’ in all forms/applications etc. prescribed by RBI / the Bank
wherein any gender classification is envisaged.

4.1.3 Operation of Joint Accounts

The Bank shall allow the deposit accounts to be opened by the account holder singly or jointly with
any other eligible person. Joint accounts can be opened by more than one individual and can be
operated either singly or jointly, as specified by the all the account holders. The operating rules in a
joint account can be modified only with the consent of all account holders.

The joint account holders can give any of the following mandates for operations of the account:

• Either or Survivor: This is applicable for accounts with two holders. The account can be
operated by any one of the account holders during the lifetime of the account holders and
the survivor in case of death of any of the accountholders.

• Anyone or Survivors: This is applicable for accounts with more than two account holders.
The account can be operated by any one of the account holders during the lifetime of all the
account holders and the survivors in the case of the death of any of the accountholders.

• Former or Survivor: This is applicable for accounts with more than two account holders. The
account can be operated by the first holder of the account and the survivors in the case of
death of the first holder.

• Both/Severally or Survivors: This is applicable for accounts with two or more account
holders. The account shall be operated by all the account holders jointly.

4.1.4 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 regulatory guidelines and
other terms and conditions attached to the service. Safe deposit lockers may be hired by an individual

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(being not a minor) singly or jointly with another individual(s), HUFs, firms, limited companies,
associates, societies, trusts etc.

4.1.5 Addition / Deletion of Holders

The Bank may at the request of all the joint account holders allow addition or deletion of name/s of
joint account holder/s or allow an individual depositor to add the name of another person as a joint
account holder.

The Bank shall allow the account holders to split the joint deposit amount in case of fixed deposit, if
the period and aggregate amount of the deposit do not undergo any change.

4.1.6 Mandate/ Power of Attorney holder

The Bank shall register mandate/ power of attorney given by the customer authorizing another
person to operate the account on his/ her behalf at the specific request of the depositor subject to
adequate due diligence of the person being authorized to operate the account.

4.2 Facilities for Demand Deposit

The Bank shall open savings and current accounts for eligible persons in line with the applicable
regulatory requirements.

4.2.1 Minimum Balance / Service charges

In respect to the BSBDA accounts, the Bank shall not stipulate any minimum balance to be
maintained. In accounts other than BSBDA, the Bank shall stipulate the minimum balance to be
maintained on a monthly/ quarterly/ annual basis, which shall be communicated upfront to the
customer by way of the Schedule of Charges.

The Bank shall levy penal charges in the event of non-maintenance of minimum balance, which shall
be notified to the customer clearly by SMS / email / letter etc. If the customer does not restore the
minimum balance within 1 month from the date of notice of the shortfall, the Bank shall recover the
penal charges after due intimation to the customer. However, if the account is inoperative, the Bank
shall not charge penal charges for minimum balance.

Information on other charges, where applicable, for services rendered by the Bank are provided in
the Schedule of Charges that are included as part of terms and conditions governing operation of
such accounts, which shall be explained by the Bank staff and also given to the customer at the time
of account opening.

For Deposit Products like Savings Account and Current Account, the Bank may stipulate certain
minimum / Average balances to be maintained as part of terms and conditions governing operation
of such accounts.

Failure to maintain the stipulated minimum/average balance in the account will attract levy of
charges for issue of additional cheque books, additional statement of accounts etc.

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4.2.2 Passbook / Account Statements

The Bank shall offer monthly statement of account (on registered email id) facility at the option of
its savings bank account holders (individuals) without any cost. The statement of accounts shall have
full address, telephone number, MICR and IFSC codes of the branch. As per operating guidelines for
Small Finance Banks, the issuance of passbook is at the discretion of the Bank.

The Bank shall ensure that the statement of accounts in respect of current accounts shall be sent in
a staggered manner.

4.2.3 Stop Payment Facility

The Bank will accept stop payment instruction from the account holders in respect of cheques issued
by them within the specified timeframe. Charges, as specified in the Schedule of Charges, will be
applied. In case of loss of the cheques in transit or clearing or at the branch, the Bank staff shall
immediately inform the customer so that he/ she can place the stop payment instructions in respect
of such cheques. Such stop payment of instruction shall not be subject to any charges.

4.2.4 Interest Rates and Calculation of Interest

The Bank shall pay interest on savings account and term deposits at the rates as decided by the Bank
within the general guidelines issued by the RBI from time to time. The Bank would obtain prior
approval of its Asset Liability Management Committee for fixing interest rates on deposits.

The Bank shall display the rate of interest on deposits in the branch premises/ website. The Bank
shall communicate upfront to the deposit account holder of any changes, if any, with regard to the
deposit schemes and other related services.

The Bank shall determine the rate of interest on savings account on a daily product basis. The interest
should be credited on regular basis whether the account is operative or not. The Bank shall pay the
customer interest on savings balance on monthly basis.

For the purpose of interest calculation for actual number of days (in case interest is calculated for
incomplete month), the denominator is taken as 365 days and 366 days in case if it is a leap year.

Interest on overdue fixed deposits remaining unclaimed shall be calculated on savings bank interest
rate till the date of payment to the depositor.

4.2.5 Nomination Facility for Deposit Accounts

The Bank shall publicize the nomination facility by printing compatible message on cheque books,
passbook and any other literature reaching the customers as well as launching periodical drives.

The Bank shall recommend nomination in respect of deposit accounts opened by individuals or sole
proprietary concerns. The Bank shall ensure that the nomination is made only in favour of individuals
and no association, trust or society shall be permissible as a nominee. The Bank staff shall
communicate to the customer that there cannot be more than 1 nominee per deposit account.

The Bank shall ensure that the account opening form has space for the nomination related fields.
The Bank shall generally insist that the person opening a deposit account makes a nomination. In

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case the person opening an account declines to fill in nomination, the Bank official shall follow the
procedure as elaborated in the Code of Customer’s Commitment to Customers/ Customer Service
policy.

The Bank shall have a proper system of acknowledging the receipt of the duly completed form of
nomination, cancellation and / or variation of the nomination, which shall be given to all the
customers irrespective of whether the same is demanded by the customers.

The Bank shall indicate the legend “Nomination Registered” in the case of all accounts where the
nominee is registered. The Bank shall additionally indicate the name of the Nominee in the Fixed
Deposit Receipts, in case the customer agrees for the same.

4.2.6 Insurance Cover for Deposits

The Bank shall inform the customers that all bank deposits are covered under the insurance scheme
offered by Deposit Insurance and Credit Guarantee Corporation of India (DICGC) subject to a
maximum of Rs 5 lakh. The Bank shall communicate to the customer that the limit of Rs 5 lakh is
inclusive of both the principal and accrued interest on such deposit held by the customer in the same
capacity and right in all branches of the Bank.

However, deposits held by banks, central and state governments (including quasi government
bodies, local autonomous bodies, Government Corporation) and foreign government are not
covered under the scheme.

4.3 Facilities for Term Deposit

4.3.1 Interest Payment on Term Deposits

The Bank shall calculate interest at quarterly intervals on term deposits and paid at the rate decided
by the Bank depending upon the period of deposits. In case of time deposits with monthly interest
pay-outs, the Bank shall calculate the interest for the quarter and pay the interest monthly at
discounted value.

The rate of interest on deposits will be prominently displayed in the branch premises and also on the
Bank’s website. Changes, if any, with regard to the deposit schemes and other related services shall
also be communicated upfront and shall be prominently displayed as mentioned in the Code of
Commitment to Customers/ Customer Service Policy.

The Bank shall compute interest based on the actual number of days in a year. In case, the Deposit
is spread over a leap and a non-leap year, the interest is calculated based on the number of days i.e.,
366 days in a leap year & 365 days in a non-leap year.

The Bank shall round off transactions including payment of interest on deposits to the nearest rupee
i.e., fractions of fifty paise and above shall be rounded off to the next higher rupee and fractions of
less than fifty paise shall be ignored.

Payment of interest on term deposit maturing on Sunday/ holiday/ non-business working day

The Bank shall pay interest at the originally contracted rate on the original principal deposit amount
for the Sunday/ holiday/ non-business working day, intervening between the date of the expiry of

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the specified term of the deposit and the date of payment of the proceeds of the deposit on the
succeeding working day.

4.3.2 Tax Deduction

The Bank has statutory obligation to deduct tax at source if the total interest paid/ payable on all
term deposits held by a person exceeds the amount specified under the Income Tax Act.

The Bank shall give an acknowledgment at the time of receipt of Form 15-G/ 15-H submitted by
customers for non-deduction of tax. The Bank shall put in place systems that will enable it to provide
Form 16A to customers, pertaining to Tax Deducted at Source (TDS) as per timeframe prescribed
under the Income Tax Rules.

The Bank shall deduct TDS at the applicable rates as per the Income Tax Act, 1961. The Bank shall
not refund, any tax already deducted on interest in any case.

4.3.3 Premature Withdrawal of Term Deposits

At the time of opening of the deposit, the Bank shall inform the customer of the premature
withdrawal option, if available for the deposit being opened and the penal charges in respect of such
withdrawal. The Bank shall also publicise this information by way of its website and the notice board
at branches.

The Bank shall incorporate a clause in the account opening form for term deposit account itself to
the effect that in the event of the death of the depositor, premature termination of term deposits
would be allowed. The conditions subject to which such premature withdrawal would be permitted
may also be specified in the account opening form. Such premature withdrawal would not attract
any penal charge.

The Bank has the option to disallow premature withdrawal of large fixed deposits (fixed deposits
over Rs 15 lakh) held by account holders including individuals and HUFs provided it was made known
to the customer at the time of opening of the account. The Bank shall ensure that all fixed deposits
under Rs. 15 lakhs have the premature withdrawal option.

The Bank at its discretion shall allow withdrawal of term deposit before completion of the period of
the deposit agreed upon at the time of placing the deposit on request from the depositor/s. Such
premature withdrawal shall be subject to the penalty applicable on premature withdrawal.

The term deposit must run for a minimum tenor of 7 days from the date of depositor request in order
to earn any interest. Premature withdrawals before this minimum tenor will result in zero interest
payment to the client.

4.3.4 Premature Renewal of Term Deposits

In case the depositor desires to renew the deposit by seeking premature closure of an existing term
deposit account, the Bank shall permit the renewal at the applicable rate on the date of renewal,
provided the deposit is renewed for a period longer than the balance period of the original deposit.
While prematurely closing a deposit for the purpose of renewal, 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

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 4.3.5 Renewal of Overdue Term Deposits

When a term deposit is renewed on maturity, the Bank shall apply the interest rate as applicable on
the date of maturity on the maturity amount.

If the request for renewal is received within 14 days from the date of maturity, the Bank shall renew
such overdue deposits with effect from the date of maturity at the interest rate applicable as on the
due date.

In respect of overdue deposits renewed after 14 days from the date of maturity, the interest for the
overdue period will be paid at the savings bank rate till the date of the request for renewal. The
interest rate as applicable on the date of the request for renewal shall be applied in respect of
renewal of such term deposits.

If a Term Deposit matures and the proceeds remain unpaid, the amount left unclaimed would attract
savings bank Rate of Interest.

4.3.6 Intimation before Maturity Date

The term deposit holders may give specific instructions to the Bank with respect to the disposal of
the deposits at the time of account opening. If such mandate is not available, then the Bank will
intimate depositors of term deposits by post, courier, email or SMS at the registered contact details
of the depositor 15 days prior to the date of maturity of the deposit.

4.3.7 Advances against Term Deposits

The Bank may offer advances against term deposits to depositor/s provided such term deposits
receipts duly discharged by the depositor/s are available with the Bank along with the necessary
security documents. The Bank shall charge such advances without reference to the marginal cost of
lending rate if the advance is given against the term deposits and the deposit stands in the name of
either singly or jointly:

• the borrower, either singly or jointly;

• one of the partners of a partnership firm and the advance is made to the said firm;
• the proprietor of a proprietary concern and the advance is made to such a concern;
• a ward whose guardian is competent to borrow on behalf of the ward and where the advance is
made to the guardian of the ward in such a capacity;
• third party deposits, a consent letter must be obtained from the account holder authorising the bank
to hold the receipt as security for the advance and to utilize the amount of deposit on maturity
towards liquidation of borrower’s dues; further the nature of relationship between the borrower and
the depositor should be disclosed. Provided that the facility under this clause will not exceed Rs. 10
lakhs or 80% of the deposit amount whoever lower.

5. Prohibitions
The Bank shall not:

• pay interest/ countervailing interest on current accounts or margin money maintained in current
accounts in any form or manner or accept any interest-free deposits except in current accounts
• pay interest on “deposit at call” receipts issued by it to the tenderers (contractors) for submission
to Government Departments/Semi-Quasi Government bodies, local bodies, etc. against the
money held in current account

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• employ/ engage any individual, firm, company, association, institution or any other person for
collection of deposit or for selling any other deposit linked products on payment of remuneration
or fees or commission in any form or manner except the use of Business Correspondents

• pay brokerage in the form of commission or gift or incentives on deposits in any manner or in any
other form to any individual, firm, company, association, institution or any other person except –

o reasonable commission paid to agents employed to collect door-to-door deposits under

a special scheme such as the use of services of intermediaries/ Business Correspondents
in providing financial and banking services including collection of deposits
o inexpensive gifts to customers costing not more than Rs. 250 and
o incentives granted to staff members as approved by RBI from time to time.

Provided that such commissions will be paid under a properly decided framework

• launch prize/lottery/free trips (in India and/or abroad), etc. oriented deposit mobilisation
schemes including online remittance schemes

• resort to unethical practices of raising of resources through agents/ third parties to meet the
credit needs of the existing/ prospective borrowers or to grant loans to the intermediaries based
on the consideration of deposit mobilisation

• issue any advertisement/ literature soliciting deposits from public highlighting only the
compounded yield on term deposits without indicating the actual rate of simple interest offered
for the particular period

• accept deposits from/at the instance of private financiers or unincorporated bodies under any
arrangement which provides for either issue of deposit receipt/s favouring client/s of private
financiers or giving of an authority by power of attorney, nomination or otherwise, for such clients
receiving such deposits on maturity.

• grant advances against fixed deposit receipts or other term deposits of other banks.

• open savings accounts in the name of Government departments/ bodies depending upon
budgetary allocations for performance of their functions/Municipal Corporations or Municipal
Committees/ Panchayat Samitis/ State Housing Boards/ Water and Sewerage/ Drainage Boards/
State Text Book Publishing Corporations/ Societies/ Metropolitan Development Authority/ State/
District Level Housing Co-operative Societies, etc. or any political party or any trading/business or
professional concern, whether such concern is a proprietary or a partnership firm or a company
or an association.

6. Dormant/ Unclaimed Deposits/ Inoperative Accounts

A savings as well as current account, which are not operated for a period of two years, would be
treated as a dormant/inoperative account. The depositor can request the Bank to activate the
account for operating it.

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The Bank shall conduct an annual review of accounts in which there are no customer induced
transactions including credits or debits other than levy of service charges of credit of interest, for the
last one year. The Bank shall send letters to the customers advising them to transact in the account,
failing which the account would be classified as inoperative if there are no transactions for the
succeeding one year. If the letters are returned undelivered, they may immediately be put on enquiry
to find out the whereabouts of customers or their legal heirs in case they are deceased.

In case the account has turned inoperative due to shift of address of the customer, the branch
officials shall assist the customer in transferring the account to any branch which is within the
proximity of the customer. The branch officials shall try to contact any other persons related to the
customer such as introducer, employer or any other persons whose contact details are available with
the Bank.

The Bank shall not levy any charges for activation of the accounts. The Bank shall credit the interest
on savings bank accounts on regular basis whether the account is operative or not.

A standardized Customer Request Form for activating an inoperative account is available at the
branches. The customer is expected to submit the same citing the reasons for not operating the
account along with the documents for proof of identity and address. The Bank shall ensure that the
branch officials do not inconvenience the customers whose accounts are inoperative, in any form.

Operation in such accounts may be allowed after due diligence as per risk category of the customer.
Due diligence would mean ensuring genuineness of the transaction, verification of the signature and
identity etc.

The Bank shall ensure that the amounts lying in inoperative accounts ledger are properly audited by
the internal auditors/ statutory auditors of the Bank. Unclaimed deposit accounts mean accounts,
which have not been operated upon the last ten years. In the case of money deposited for a fixed
period, the said term of ten years would be reckoned from the date of the expiry of such fixed
deposits.

The Bank shall display the list of unclaimed deposits/inoperative accounts which are inactive /
inoperative for ten years or more on its website. The list so displayed on the websites shall contain
only the names of the account holder(s) and his/her address in respect of unclaimed
deposits/inoperative accounts.

7. Closure of Account
The Bank shall close the current/savings account upon customer’s request within 3 working days of
receiving instructions, subject to the customer completing all formalities and submitting all required
documents.

In absence of a mandate by the term deposit account holders at the time of placing their deposits
can give instructions with regard to closure of deposit account or renewal of deposit for further
period on the date of maturity, the Bank shall retain the proceeds of the fixed deposit in a separate
account on which savings bank rate of interest shall be paid to the depositor.

The Bank shall close the accounts either based on written instruction from the customer or suo moto
by the Bank, where necessary, in line with the Customer Service Policy and the KYC/AML Policy of
the Bank.

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8. Secrecy of Customer’s Accounts

The Bank shall maintain complete confidentiality of the customers’ information and shall not disclose
details / particulars of the customer’s account to a third person or party. The Bank shall not share
any such information for the purposes of cross-selling. In certain exceptions, the Bank shall share the
customer information:

• Where disclosure is under compulsion of law

• 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.

The Bank shall obtain necessary information from the customer in order to ascertain the identity of
the customer. Any additional information sought by the Bank shall only be on a voluntary basis and
the Bank official shall explain to the customer the reasons on why such information is necessary/
required.

9. Settlement of Dues

9.1 Deceased depositors

Accounts with survivor/nominee clause

In the case of deposit accounts where the depositors had utilized the nomination facility and made
a valid nomination, the Bank shall make the payment of the balance in the deposit account to the
survivor(s) and the nominee of the deceased deposit account holder jointly: However, if the joint
account holders had given mandate for disposal of the balance in the account in the forms such as
either or survivor, former / latter or survivor, anyone of survivors or survivor, the payment will be
made as per the mandate to avoid delays in production of legal papers by the heirs of the deceased
account holder.

The Bank shall exercise due care and caution in establishing the identity of the survivor(s)/ nominee
and the fact of death of the account holder, through appropriate documentary evidence. The Bank
shall desist from insisting on production of succession certificate, letter of administration or probate,
etc., or obtain any bond of indemnity or surety from the survivor(s)/nominee, irrespective of the
amount standing to the credit of the deceased account holder.

The Bank shall confirm that there is no order from the competent court restraining the Bank from
making the payment from the account of the deceased. The Bank shall inform the survivor(s)/
nominee that he/ she would be receiving the payment from the bank as a trustee of the legal heirs
of the deceased depositor and that such payment to him shall not affect the right or claim which any
person may have against the survivor(s) / nominee.

Accounts without the survivor/ nominee clause

In case where the deceased depositor had not made any nomination or for the accounts other than
those styled as “Either or Survivor” (such as single or jointly operated accounts), the Bank shall
keeping in view their risk management systems, fix a minimum threshold limit, for the balance in the
account of the deceased depositors, up to which claims in respect of the deceased depositors could
be settled without insisting on production of any documentation other than a letter of indemnity.

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The Bank shall release the balances of the deceased depositor to their legal heirs upto Rs 25,000
without any letter of indemnity or any other documentation.

Premature Termination of term deposit accounts

The Bank shall permit premature closure of a joint deposit only if all the deposit holders sign a
request to that effect. In the case of Term deposits with operating instructions Either Or Survivor,
Former Or Survivor, Later Or Survivor and Anyone Or Survivor. In the event of death of one of the
joint holders and in the absence of relevant mandate, premature closure of such deposit will be
allowed only if the legal heirs of the deceased agree for such premature closure. In cases where
relevant mandate is available with the Bank, premature closure of such deposits shall be allowed in
the favour of survivors.

Treatment of flows in the name of the deceased depositor

The Bank, if authorized by the survivor(s)/ nominee of a deceased account holder, shall open an
account styled as ‘Estate of Shri ________________, the Deceased’ where all the pipeline flows in
the name of the deceased account holder could be allowed to be credited, provided no withdrawals
are made.

Alternatively, the Bank, if authorized by the survivor(s)/ nominee, shall return the pipeline flows to
the remitter with the remark “Account holder deceased” and shall intimate the survivor(s) / nominee
accordingly.

Payment of interest in case of death of depositor

In the case of balances lying in current account standing in the name of a deceased individual
depositor/ sole proprietorship concern, interest should be paid from the date of death of the
depositor till the date of repayment to the claimant/s at the rate of interest applicable to savings
deposit as on the date of payment.

The Bank shall pay interest on term deposits in the name of the deceased depositor/s at the
contracted rate till the date of maturity in the event of death of the depositor takes place before the
date of maturity of deposit and amount of the deposit is claimed by survivor/ nominee after the date
of maturity. The Bank shall pay interest at savings deposit rate prevailing as on the date of maturity
from the date of maturity till the date of payment in the case of death of the depositor after the date
of maturity of the deposit, the Bank shall pay interest at savings deposit rate prevailing as on the
date of maturity from the date of maturity till the date of payment.

Time limit for settlement claims

The Bank shall settle the claims in respect of deceased depositors and release payments to survivor(s)
/ nominee(s) within a period not exceeding 15 days from the date of receipt of the claim subject to
the production of proof of death of the depositor and suitable identification of the claim(s), to the
Bank’s satisfaction.

The Bank shall provide the claim forms on its Bank’s website to facilitate timely settlement of
deceased claims.

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9.2 Missing persons

The Bank shall settle the claims upto Rs. 25,000 by survivors/ nominees in respect of persons missing
for 7 years or more without production of any FIR or police complaint and letter of indemnity in
respect of the missing person. In respect of the claims above Rs. 25,000, the Bank shall obtain legal
opinion and settle such claims subject to production of evidence/ documentation of the missing
person as deemed adequate by the Bank.

10. Redressal of Complaints and Grievances

If the customer is unhappy or has any complaint regarding the products/ services offered to him/
her, the designated authority of the Bank shall handle customer complaint/ grievances raised by
depositors.

The Bank shall display the names of the nodal officers for redressal of complaints / grievances in the
branch premises and internal set up for redressal of complaints shall be displayed on the Bank’s
website. The branch officials shall provide all required information regarding procedure for lodging
the complaint. The customer’s grievance shall be handled in the manner as elaborated in the
Customer’s Grievance Redressal Policy of the Bank.

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