SAVINGS BANK ACCOUNTS (Instructions relating to the formalities to be observed for opening of an account, operations in an account and other matters relating to maintenance, common for savings accounts have been given in the master circular on “ General Instructions- Deposit Constituents accounts”) The additional guidelines relating to Savings Bank accounts are provided in this annexure. The guidelines contained herein must be read together with the guidelines in master circular on “ General instructions relating to deposit constituents’ accounts. 1. Savings Bank account is a form of demand deposit account, opened mainly for the purpose of saving and not for any business purpose, subject to restrictions on the number of withdrawals during any specified period. Number of withdrawals in a savings bank account permitted is fifty per half year in a financial year. For accounts opened in the middle of the half year permissible withdrawals will be calculated prorata. If the numbers of withdrawals exceed the permitted limit, a service charge as advised from time to time will be levied. 2. OPENING OF ACCOUNTS 2.1. SAVINGS BANK ACCOUNTS MAY BE OPENED IN THE NAMES OF Individuals–single accounts, or joint accounts of two or more individuals. minors by themselves or on behalf of the minors by their guardians Following entities a. Primary Co-operative Credit Society which is being financed by the bank. b. Khadi and Village Industries Board c. Agriculture Produce Market Committee d. Societies registered under Societies Registration Act, 1860 or any other corresponding Law in force in the state or Union Territory. e. Companies Governed by the Companies Act 1956 which have been licensed by the Central Government under section 25 of the Act, or under the corresponding provisions in the Indian Companies Act 1913 and permitted, not to add to their names the word "Limited or the words "Private Limited" f. Institutions other than those mentioned in para (2.1.) above and whose entire income is exempt from payment of income tax under Income Tax Act, 1961. g. Government departments/bodies/agencies in respect of grants/subsidies released for implementation of various programmes/schemes sponsored by Central Government/State Governments subject to production of an authorisation from the respective Central/State Government departments to open savings bank account. h. Development of women and children in rural areas (DWCRA). i. Self-help Groups (SHGs) registered or unregistered, which are engaged in promoting savings habits among their members. j. Farmers' Clubs - Vikas Volunteer Vahini. (V V V)
Transcript
SAVINGS BANK ACCOUNTS
(Instructions relating to the formalities to be observed for opening of an account,
operations in an account and other matters relating to maintenance, common for savings
accounts have been given in the master circular on “ General Instructions- Deposit
Constituents accounts”)
The additional guidelines relating to Savings Bank accounts are provided in this
annexure. The guidelines contained herein must be read together with the guidelines in
master circular on “ General instructions relating to deposit constituents’ accounts.
1. Savings Bank account is a form of demand deposit account, opened mainly for the
purpose of saving and not for any business purpose, subject to restrictions on the
number of withdrawals during any specified period. Number of withdrawals in a
savings bank account permitted is fifty per half year in a financial year. For accounts
opened in the middle of the half year permissible withdrawals will be calculated
prorata. If the numbers of withdrawals exceed the permitted limit, a service charge
as advised from time to time will be levied.
2. OPENING OF ACCOUNTS
2.1. SAVINGS BANK ACCOUNTS MAY BE OPENED IN THE NAMES OF
Individuals–single accounts, or joint accounts of two or more individuals.
minors by themselves or on behalf of the minors by their guardians
Following entities
a. Primary Co-operative Credit Society which is being financed by the
bank.
b. Khadi and Village Industries Board
c. Agriculture Produce Market Committee
d. Societies registered under Societies Registration Act, 1860 or any other
corresponding Law in force in the state or Union Territory.
e. Companies Governed by the Companies Act 1956 which have been licensed by
the Central Government under section 25 of the Act, or under the corresponding
provisions in the Indian Companies Act 1913 and permitted, not to add to their names the word "Limited or the words "Private Limited"
f. Institutions other than those mentioned in para (2.1.) above and whose entire
income is exempt from payment of income tax under Income Tax Act, 1961.
g. Government departments/bodies/agencies in respect of grants/subsidies released
for implementation of various programmes/schemes sponsored by Central
Government/State Governments subject to production of an authorisation from
the respective Central/State Government departments to open savings bank account.
h. Development of women and children in rural areas (DWCRA).
i. Self-help Groups (SHGs) registered or unregistered, which are engaged in
promoting savings habits among their members.
j. Farmers' Clubs - Vikas Volunteer Vahini. (V V V)
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2.1.1 Branches shall not open Savings Bank account in the name of the following:
a. Any trading or business concern, whether such concern is proprietorship,
partnership, company or association.
b. Government departments/bodies depending upon budgetary allocations for
performance of their functions.
c. Municipal Corporations/Committees
d. Panchayat Samities
e. State Housing Boards
f. Industrial Development Authorities
g. State Electricity Boards
h. Water / Sewerage / Drainage Boards
i. State Text Book publishing corporations / societies
j. Metropolitan Development Authorities
k. State / District level housing Co-operative Societies.
l. Other banks including Regional Rural Banks, Co-operative Banks and land
Development Banks.
m. Political parties
2.2. Any other institution permitted by Reserve Bank of India from time to time, can be
allowed to open Savings Bank Accounts.
2.3. If the branch is approached by any other institution not covered under 2.1 above,
and which are specifically charged with the task of rendering social or economic
assistance to, or welfare of, the weaker and under-privileged sections of the society,
the branch shall, for opening savings bank accounts for them, make a
formal application through their Regional office, to the Regional Office of
the Department of Banking Operations and Development, Reserve Bank of
India within whose jurisdiction the Registered Office of the beneficiary organization
is situated. The branch shall furnish full particulars of the institution, including copies
of the Memorandum and Articles of Association, bye-laws, nature of activities,
published accounts, such as balance sheet, profit and loss account or income and
expenditure statements, the manner of distribution of surplus funds etc., to enable
the Reserve Bank of India to decide whether specific exemption can be granted in its
favour or not. The branch can open such accounts as savings account only
after specific permission is received from Reserve Bank of India.
2.4. Acceptance of Interest free deposits in Savings Bank is prohibited irrespective of
caste, creed or religion of the depositor.
2.5. Branches are permitted to open Savings Bank accounts for the following special
categories of depositors, subject to the guidelines contained in the relevant
paragraphs in the master circular on “ General Instructions on Deposit Constituents’
accounts”, also for operations thereon .
a) Minors represented by guardians
b) Minors above age ten
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c) Blind persons
d) Illiterates
e) Purdhanashin ladies
f) Trusts.
2.6. First Line Managers may permit depositors to have more than one Savings Bank
Account in their own names or jointly with other persons or as guardians on behalf of
minors.
2.7 Introduction of Accounts
Where the applicant for a SB Account submits sufficient proof of identity and
address as prescribed in KYC-AML Policy of our bank and the branch is with the
bonafides of the applicant and as a respectable person, with such proof of identity
and address, branch may open the account without insisting on an introduction by
an existing account holder. However a Letter of Thanks to the depositor should be
sent as envisaged in the master circular on “General Instructions on Deposit
Constituents’ Accounts”. Branch should be in a position to classify such account
holders under “Low risk-RIP I under KYC Norms / AML Standards.”
With the exception of the above, and “No frills Accounts” all other Accounts should
be introduced as guided in the master circular on “General Instructions on Deposit
Constituents’ Accounts”.
3. MAINTENANCE OF ACCOUNTS
Guidelines in respect of obtaining the appropriate account opening form, specimen
signature sheets and their maintenance and the method of opening the accounts are
provided in master circular on “ General Instructions on Deposit Constituents’ accounts “
In addition branches should follow the guidelines contained in the following paragraphs.
3.1. Application to open a Savings Bank Account should be made on
TYPE OF ACCOUNT SAVINGS BANK FORM NO
1. Savings Bank Account
Opening Form
10 ( revised & 303X
for HUF Accounts
2. Savings Bank Account
Opening Form for
(a) Minor’s Accounts operated by a
Guardian 10 A
(b) Societies, Clubs etc. 511
(c) Non Residents in the form of Non
Resident (External) Accounts
523
(d) Trusts 551
(e) Accounts under Capital Gains
Accounts Scheme, 1988 FORM A
Central office is in the process of revising the account opening forms, when advised
so branches should obtain the new application forms.
3.2. On receipt of the account opening form and specimen signature sheet duly filled in,
along with the KYC – CROP form and documentary evidence there on for customer
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acceptance Policy and Customer Identification Procedure, the opening of the account
must be authorised by the Branch Manager or by the department officer as
authorized by the Branch Manager. Such authorisation will be made after
interviewing the applicant and verifying the particulars furnished. In case the
department officer had authorised the opening of the account, at the end of the day
the Branch Manager should approve of the same. The account can then be opened
in the computer system, with the operator inputting the details in the master and the
supervising staff approving the same. In the computer system, next serial number as
generated by the System or a Fancy number as requested by the customer can be
allotted. The Customer ID and the account number should be entered on the account
opening form, specimen Signature sheets and KYC- Crop form. The account opening
details then should be entered in the Savings Bank account opened and closed
register (format given below). The account number should also be entered in the pay
in slip and also advised to the customer. The entries made in the register should be
verified and initialed by the Officer of the department. Whenever there is an
inadequacy in the Account Opening Form or Specimen Signature sheets, the clerical
staff (operator) must assist the departmental officer in arranging to rectify the
inadequacies without loss of time. The clerical staff (operator) must make a note of
such inadequacies in the remarks column of the Account Opened and Closed
Register. The Register should be put up to the Branch Manager every day for his
counter initials. The Manager/Deputy Manager/Department Officer must also
regularly examine such remarks to ensure that steps are initiated to eliminate the
inadequacies observed at the earliest.
The first line Manager or the authorized officer should go through the KYC Crop form
and categorise the applicant on risk as Low Risk- RIP one , Medium risk – RIP 2,
High Risk – RIP 3 , Exceptionally High risk – RIP 4 and enter the Risk Level threshold
limit applicable to the account in the KYC form & the account opening form . Branch
should also enter the same in computer system.
Branches should bear in mind that transactions in the accounts of Medium , High
Risk and Exceptionally High risk category accounts need close monitoring as per KYC Norms / AML Standards.
REGISTER OF ACCOUNTS OPENED AND CLOSED
DATE NAME OF THE CONSTITUENT
NUMBER OF A/C OPENED
NUMBER
OF A/c CLOSED
REASONS
FOR CLOSING
TOTAL
NUMBER OF A/Cs.
INITIALS REMARKS @
1 2 3 4 5 6 7 8
@ In the remarks column, details like “Transferred from ___________ branch” can be
recorded where the account has been transferred from another branch.
2.5. For all the above accounts, excepting Minors’ Special Savings accounts, branches
should obtain the nomination as per procedure and record in the computer
system. For the procedure on nominations branches are to refer to the master
circular on Nominations and claim settlements and Book of Instructions.
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3.6. MINIMUM BALANCE AND CHARGES FOR NON MAINTENANCE OF MINIMUM BALANCES
Category With cheque
facility
Without cheque
facility
Penalty for non
maintenance
Rural & Semi urban
branches
Rs. 500/- Rs. 100/- Rs.7 per month
Other branches Rs.1000/- Rs.500/- Rs.14 per month
Pensioners’ SB account Rs.250/- Rs.5/- As above based on
the category
3.6.1. In case of default in maintaining minimum balance, branch should initiate the
following action:
(a) the Account need not be closed for want of minimum balance.
(b) Cheques should not be returned if sufficient funds are available for passing a
cheque, even though the balance goes below the minimum required. The
condition of the account should be brought to the notice of the customer in
writing, which should be of persuasive nature.
(c) Branch should send letters to the customers stressing the need for
maintaining minimum balance.
(d) After issuing a Registered Notice, Branch should stop issuing cheque books to
the customers if the balance goes below the minimum required six times in a
quarter.
(e) Branches should charge penalty for default in maintaining minimum balance
required for Savings Bank Accounts, as above
Branches should note that no overdraft should be created by debiting the penalty amount.
If there is insufficient balance, proper record of such accounts should be maintained and
the penalty debited or recovered as and when there is sufficient balance. Branches should
display the minimum balance requirements and charges there on in the branch notice
board prominently.
Along with Account opening form branches should obtain ATM application form and
Application form for E- see banking ( internet banking ) and load the details in the
computer system as prescribed by IT dept. This would enable our customers use the ATM
and also that of other banks at various locations across the Country. Branches should
also explain the advantages of net banking to the customer. Branches also can obtain the
request from customers for availing the mobile phone alerts and then feed the mobile
number in the appropriate module in the computer system. These facilities are available
only for networked branches.
3.8. The passbook should be branded with the rubber stamp reading “NOMINATION
REGISTERED”. The details of the nominee should also be entered in the computer
master through appropriate programme.
3.9. The pass book should be handed over to the depositor after the amount of initial
deposit has been credited to the account and entered in the pass book under the
initials of the officer-in-charge of the department/a Supervising Official after he/she
verifies the correctness of the entry in the pass book with that in the computer page.
3.10. Branches should also cross sell our IOB-Jeevan group insurance policy and IOB
Healthcare plus to the new customers highlighting to them that these products are
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for their welfare. Branches should also get a request letter from the customers for
debiting the lowest insurance premium of Rs.10/- in the account to cover accident
insurance for one year. Branches should note that these are value additions to our
existing customers as well as prospective customers.
3.11 Initial remittance
As a measure of abundant precaution, it is better to open an account with an initial cash
remittance. However, there is no bar for opening accounts with the proceeds of bank
drafts payable to the applicant to the account or his self cheque on another bank provided
the introduction is acceptable. In the case of salary accounts, branches may even
consider opening the account with zero balance.
4.1. PRECAUTIONS IN THE OPERATIONS OF NEWLY OPENED ACCOUNTS
Branches should refer to the master circular on “ general instructions relating to deposit
constituents’ accounts” on the precautions in the operations of newly opened accounts.
To facilitate this, the computer system will flash the warning “ New account “ up to six
months to invite the attention of the operators and the supervising staff whenever they do a posting or passing in the relevant accounts.
4.2. OPERATIONS IN THE ACCOUNTS
Branches should refer to the master circular on “general instructions“ for detailed
guidelines on the operations in the accounts.
4.2.1. Subsequent to opening the account a depositor may remit any amount in his
account. All deposits to Savings Bank Account should be accompanied by pay-in-
slips. Separate pay-in-slips should be used for cash and cheques. All Cash
Deposits in Savings Accounts of Rs.50,000/= and above will require the
account holder furnishing the Income-tax PAN or declaration in Form 60
or 61 as the case may be.
4.2.2. Cheques, drafts, dividend warrants and other instruments should be accepted for
credit of savings bank accounts only if they are drawn payable to the depositor.
4.2.3. However, branches may accept interest warrants issued in the name of the first
purchaser of Public Sector bonds and endorsed in the name of the second
purchaser, and presented for collection by the second purchaser for collection in
his/her/their savings bank accounts.
For this purpose, branches should brand the respective savings bank Challans
accompanying the interest warrants, with a rubber stamp containing the following
declaration :
“I/WE, DECLARE THAT I/WE, AM/ARE, THE HOLDER-IN-DUE COURSE AND
FOR VALUE WITHIN MENTIONED INTEREST WARRANTS TENDERED TO YOU
FOR COLLECTION”
The branch should invariably ensure that such declaration is signed by the depositor
before accepting the interest warrants for collection in Savings Bank accounts.
4.2.4. Withdrawals are permitted either by cheques issued to the customers or by
withdrawal forms provided by the bank.
4.2.5. Branches should educate the Savings Bank customers to avail of the Teller service,
wherever provided, for payment of Savings Bank cheques/ withdrawal slips, for
amounts not exceeding Rupees Fifteen thousand only. Savings Bank Customers
may also be permitted to avail of the Teller facility for remitting cash not exceeding
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Rupees Fifteen thousand only per day per account for deposit into their Savings
Bank accounts.
4.2.6 Branches should encourage savings bank customers to avail Visa Debit card cum
ATM card, so as to reduce the pressure on counters within the bank. This is also a
selling point for the branches to canvass more and more salary accounts of
companies.
4.2.7. Branch supervising staff, as allocated by the Branch Manager should check the
supplementary output every day as detailed in the master circular on “ general
instructions”.
In a computerized environment, supplementary checking is akin to ledger checking
and such checking alone will bring out any unauthorized postings or will enable the
branch to know on the transactions carried out by a FBS facilitator branch.
5. ACCOUNTING FOR WRONG ENTRIES
Whenever a customer’s account has been wrongly credited with the amount meant for
another customer’s account, or a customer’s account debited with a debit voucher
intended for another customer’s account, the wrong credit or debit must be reversed
immediately upon finding out the error, and both customers advised immediately.
Where the recovery of a wrong credit or effect of a debit which was omitted to be debited
earlier results in an overdraft in an account, the customer must be informed immediately
by a letter as per format provided in the master circular on “ general instructions” be sent
by Registered Post with acknowledgement due and the adjustment of the overdraft must
be pursued expeditiously.
6. CUSTODY OF WITHDRAWAL FORMS
6.1. When a customer comes to the Bank for making a withdrawal, the Savings Bank
counter clerk (operator) may hand over a withdrawal slip to the customer for his
immediate use from the stock kept on the counter top for the ready use of
customers. Additional withdrawal slips not exceeding ten leaves at a time may be
given to such of those customers who do not have cheque books, for the purpose of
drawing cash through third parties. In such a case the savings bank clerk(operator)
should note the account number in all the withdrawal slips before parting with the
same.
7. PAYMENT OF WITHDRAWAL FORMS
7.1. Withdrawal slips, as a general rule, should not be paid unless accompanied by
passbook. Withdrawal slips have been printed with the following clause “pass book
must accompany this order form”. Insistence of pass book while withdrawal slips
are presented over the counter for payment will serve as a definite check against
funds being withdrawn by unauthorised persons. The concerned member of staff
(passing supervising staff) will be personally liable for any loss that may be incurred
on account of their negligence in not insisting upon the pass book. Where withdrawal
slips are presented without production of the pass book, the Manager/Senior
Manager/Deputy Manager or the supervising official in charge of the department may
authorise the payment provided they are thoroughly satisfied that such withdrawal
slips are presented by the account holder himself or some one whose identity is well
known to them.
7.2. Payment out of Savings Bank account to third parties through withdrawal slips may
be allowed up to a maximum amount of Rupees One thousand only per instrument.
For this purpose withdrawal slips have been printed with the following clause:
“Payment to other than the account holders, restricted to Rupees One thousand only”.
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8. RECEIPT, CUSTODY AND ISSUE OF CHEQUE BOOKS
Issue and custody of Savings Bank cheques should be on the guidelines as detailed in the
master circular on “ general instructions”.
In terms of guidelines from IBA adopted by our Bank, branch should adhere to the
following instructions whenever a customer requests for more than one cheque book at a
time:
(i) Branches should avoid issue of more than one cheque book at a time to Savings
Bank customers.
(ii) In the case of Savings Bank customers needing excessive number of cheques to
be drawn, branches should persuade them to open Current Accounts.
(iii) However if the branch is convinced about the genuineness of the customer’s
request for more than one cheque book at a time, a report with specific
recommendation should be submitted to Regional Office for approval.
Regional Office shall consider such Reports on the merits of each case and accord
permission or decline the request without loss of time.
(iv) Branches are advised to educate the constituents in this regard and guard against
any complaint.
9. PAYMENT OF CHEQUES
Detailed guidelines have been given in the master circular on “ General instructions”
on the payment of cheques. cash- transfer- inward clearing. Branches are to refer to
the same.
10. PASS BOOKS AND CONFIRMATION OF BALANCES
The entries in a pass book duly initialed by the ledger-keeper (operator) must be
authenticated with the initials of the Supervising Official only after he/she has verified
them with the corresponding entries in the ledger report display in the computer system
and verifying the relative vouchers of the day in respect of unchecked entries. Computer
generated Statement of Accounts issued to the customers should be signed by Authorised
supervising staff after affixing branch rubber stamp.
Branches are to refer to the master circular on “ general instructions” on the
issue of Passbook, issue of duplicate passbook and custody of passbooks until making up the entries on the same.
Confirmation of balances in Form F.237A should be obtained as on the last day of
September every year wherever, the accounts show a debit balance,
11.HANDLING OF STOP PAYMENT INSTRUCTIONS
Branches should adhere to guidelines contained in the master circular on “ general
instructions”
12. STANDING INSTRUCTIONS
Savings Bank customers may give standing instructions to the branch for making
remittances of funds periodically from their accounts. Branches should be guided by the
guidelines given in master circular on “ general instructions “ for acceptance, recording
and carrying out the Standing Instructions. Branches should note that prompt execution
of standing instructions will enhance customer satisfaction and also a sensitive area for complaints.
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13. INTEREST CALCULATION, MONTHLY PROVISION AND PAYMENT OF
INTEREST
13.1. Interest at the rates specified by Reserve Bank of India from time to time shall be
paid on the balances in Savings Bank Accounts.
13.2. Interest on Savings Bank accounts is payable half yearly.
13.3. For the purpose of providing monthly interest on Savings Balances branches should
calculate interest on the aggregate balance arrived at as under:
General Ledger Balance as on the 10th of each month Rs...............
LESS Total of withdrawals (debits) from 11th to the
last day of the month Rs...............
Reminder on which monthly interest will be calculated Rs...............
The interest so calculated should be debited to Branch Profit and Loss Account Interest
Paid on Deposits Account and credited to Interest Accrued Account.
13.4. Actual interest on individual savings bank accounts should be calculated for the six
months period viz.(i) from First day of February to the last day of July and (ii) from
First day of August to end of January.
13.5. The interest on individual accounts should be credited to the respective accounts
during the first week of August for the six months ending 31st July and during the
first week of February for the six months ending 31st January.
13.6. For the purpose of calculation of interest, the lowest clear balance at credit in an
account between the tenth day and the last day of each month is computed as
products by the system. At the end of each half year, the monthly products is
totaled and divided by six to arrive at the average monthly balance in the account.
Interest should be calculated on the average balance at the prevalent rate of
interest for savings bank accounts.
13.7. No interest should be paid unless the interest accrued during the half year amounts
to atleast Rupee One.
13.8. A supervising official should check in the interest calculations by the computer
system random. From the interest posted printout he should also ensure that all
the accounts have been credited with interest except as contained in para 13.7.
The total interest paid on all accounts will be listed and debited to Interest
Accrued Account. While providing the interest as calculated by the computer
system , the branch should ensure that the outstanding in Interest Accrued
account contains only the current month provision. As the system is programmed
to do the vouching for the current month provision, branches need to check up that
at a particular month the interest provision is properly held, by taking average
balance of GL and working out for the number of months the provision is held in
Interest accrued account.
13.9. At the time of closure of account, interest should be applied by debit to Interest
Accrued Account and the ultimate balance paid to the depositor against his
cheque or withdrawal form in the usual manner.
13.10. In the case of accounts opened after tenth day of a month, interest will be payable
only from the subsequent month.
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14. BALANCING OF LEDGERS
14.1. Branches to ensure that at the time of day end, the master balance and GL
balances agree. If the same does not agree and shows a difference, branches
should note down both the balances and the difference and take up with their RCC
/ I T dept , Central office through the complaints procedure and rectify the same.
15. OVERDRAFTS IN SAVINGS BANK ACCOUNTS
15.1. Though savings bank accounts are primarily meant for promoting savings, branches
may face situations where cheques issued by otherwise regular savings bank
customers being presented without adequate balance. In order to accommodate
such customers in exceptional cases branches may permit limited temporary
overdrafts in savings bank accounts subject to the stipulations prescribed by
Central Office from time to time.
15.2. branches should strictly adhere to the following stipulations whenever such a need
arises. Any overdraft can be granted only against the specific written
request of the customer and with suitable documentation (DPN, F.16 & Credit
cum opinion sheet by the Manager ).
a) The customer must be having a satisfactorily maintained Savings Bank Account
with the branch for not less than six months.
b) He/She must be a confirmed employee in a Government / Semi-Government /
Quasi Government department or Organisation/Public Sector or Private Sector Organisation of repute.
c) He / She should have a stable income with reasonable prospects of its
continuance in the near future.
d) Members of the staff and their close relatives (Father, Mother, Brother,
Sister, Children and In-laws) are not eligible for this facility.
e) The salary of the customer must preferably be routed through his/her savings bank account with the branch.
f) The amount of overdraft should not exceed one month’s net salary as credited
to the customer’s account with the branch or the discretionary power of the
branch for granting temporary overdrafts, whichever is less.
g) The overdraft must be adjusted within one month from the date of its
availment.
h) If the customer desires to have the overdraft facility on a regular basis, he/she
must be advised to open a Current Account and a temporary Overdraft facility may be considered as per the existing rules and procedures.
i) Interest should be charged at the rate applicable for temporary overdrafts and
recovered at the end of the month.
j) Each debit which creates or acts to increase an overdraft must be referred to
the Branch Manager in the Cheques Referred Register. The overdraft can be
given only when authorised by the Branch Manager or in his absence by the
second line Manager..
k) Immediately on the occurrence of an overdraft, the branch should write to the
customer, advising him/her about the same and request him/her to adjust the
same at the earliest. A model letter is appended below.
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INDIAN OVERSEAS BANK PLACE
DATE
................................. Branch
To
____________________________
____________________________
____________________________
Dear Sir/Madam,
OVERDRAFT IN YOUR SAVINGS BANK
ACCOUNT NO ___________________
We have today paid your cheque No__________ dated________ favouring
__________________ for Rs._____________ (Rupees__________________________
only), thereby resulting in your account being overdrawn to the extent of Rs._______
(Rupees_____________________________ only) Kindly acknowledge and provide funds
to clear the overdraft at an early date.
Thanking and assuring you of our best services at all times,
15.3. Balancing and Accounting of Overdrafts in Savings Bank
The balance in the overdrawn accounts must be extracted in the Temporary Overdraft
report everyday and checked by the supervising official in charge of the Savings Bank
department and placed before the Deputy Manager and the Branch Manager for
information and confirmation.
The overdraft in Savings Bank should be incorporated in the General Ledger under “
Overdraft in Savings Bank - Code No. 4123” on the Asset side.
15.4 REPORTING OF OVERDRAFTS IN SAVINGS BANK ACCOUNTS
Overdrafts granted in Savings Bank accounts must be reported individually on a monthly
basis in CAF-3 under Personal Overdraft Scheme.
Accounts not adjusted and outstanding beyond sixty days from the date of granting
should be treated as irregular and reported to Regional Office in ERI.
Overdrafts under personal overdraft scheme should not be extended at the extension counters
16. Value additions (concessions) in savings accounts
Savings Bank Accounts where an average quarterly balance of Rs. Ten thousand only and
above was continuously maintained during the previous quarter are eligible for the
following concessions in the current quarter.
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a. Inland Demand Drafts and/or Mail Transfers for two occasions in a month for a total
amount of DD and /or MT put together not exceeding Rs.10,000/= are totally
exempted from Exchange / Commission charges.
b. Collection charges would not be levied on outstation instruments such as Cheques,
Demand Drafts, Dividend Warrant, Interest Warrant, Refund Order etc., (excluding
Documentary / Clean Bills, Hundies, Supply Bills). The total amount of instruments
collected during a month for which no service charges are recovered should not exceed
Rs.10,000/=. However there is no restriction on the number of instruments collected
per month. The actual postal charges incurred for collecting the instruments would be
collected from the depositor. If the instruments are requested to be sent to our STAR
Centres (speed collection) then usual service charges would be levied.
17. DORMANT/IN-OPERATIVE ACCOUNTS AND UNCLAIMED BALANCES
Branches are to refer to master circular on “ General instructions”
18. UNDESIRABLE ACCOUNTS
Branches are to refer to master circular on “ General Instructions “.
19. TRANSFER/CLOSURE OF ACCOUNTS
Branches should be guided by the guidelines contained in master circular on
“General instructions on Deposit constituents’ accounts“ for transfer of accounts from
one branch to another of our Bank and closure of accounts.
19.1. In the case of Savings Bank Accounts, interest up to the end of the previous month
should be calculated and credited to the Account by the transferor branch. For the
current month, if the account is transferred after tenth day of the month, the
lowest balance in the Account during the month of transfer should be mentioned
separately in the Transfer Form (Form 577) itself, to enable the transferee branch
to provide interest to the transferred Account for the month of transfer.
19.2 Similarly interest should be calculated and credited to the account before closure of
the account.
20. “NO Frills Accounts”
20.1. “No Frills accounts “ are part of RBI’s efforts to bring in to the banking fold, the financially or socially disadvantaged persons through financial inclusion. The bank
has introduced a simplified account opening form for such accounts. Criteria for such accounts is listed below
Sl.
no
Features Description
1 Type of account and GL code NO Frills S B Account. G L code 1212
2 Branches where account can be
opened
All Rural, Semi Urban, Urban and
Metropolitan branches.
3 Who can open the account Individuals including minor who have
completed 10 years of age and pensioners.
Joint accounts are permitted.
4 Introduction for opening the
account
Introduction from an account holder who has
been subjected to full KYC procedures. The
Introducer’s account with the bank should be
atleast 6 months old and should have
satisfactory operations.
Alternatively Branch can accept certificate
from VAO / Voter Identity card / Ration Card
/ Driving licence / PAN Card ( if available ) /
Passport ( if available) as a proof of identity
and address and open the account on the
strength of it.
5 Minimum balance Rs. Five.
6 Penalty for non maintenance of
Minimum balance
NIL
7 Withdrawals in the account Only by withdrawal slips. Cheque book will
not be issued.
8 Restriction of number of
transactions
25 transactions per half year ending March
and September
9 Penalty for exceeding the
number of transactions
No interest is payable
10 Restriction on amount of
transaction
10.a In order to enjoy “ No Frills” status ,
the balance in the account should not exceed
Rs.50000/- at any point of time or Total
credit in the account should not exceed
Rs.100,000/- in the financial year.
10.b. When either of the limits stipulated as
above is exceeded, the “ No Frills“
status of that particular account should
be withdrawn. Instead such account
should be treated as regular S B
account which entails application of full
KYC Procedures put in place by our
bank.
10. c. In the case of ( b) above, branch
should allow further operation only
after completion of application of full
KYC procedures.
10. d . It is the responsibility of the branch
to closely monitor the operation in “
No Frills “ SB accounts and identify
those accounts which reached a
balance of Rs.40,000/- or total credit
of Rs.100,000/- from time to time
and prepare for the application of full
KYC procedures in co-ordination with
the account holder.
11 Interest payable Interest rate applicable to regular SB
accounts and method of calculation is the
same . ( presently 3.5% p.a )
12 Value addition / Concession 12.i. When the quarterly average balance of
Rs.10000/- and above was continuously
maintained during the previous quarter.
a. Inland Demand Drafts and / or mail
transfers for two occasions in a month for a
total amount of DD and / or MT put
together not exceeding Rs.10000/- are
totally exempted from exchange /
commission charges
b. Collection charges would not be levied on outstation instruments such as cheques,
demand drafts, dividend warrant, interest
warrant, refund order etc., (excluding
Documentary / clean bills , hundies,
supply bills) . The total amount of
instruments collected during a month for
which no service charges are recovered
should not exceed Rs.10000/-. However
there is no restriction on the number of
instruments collected per month. The
actual postal charges incurred for
collecting the instruments would be collected.
If the instruments are required to be sent
to our STAR centres ( speed collection )
then usual service charges would be
levied.
12. 2. No other value additions are allowed
in the account.
12.3 ATM cards are not be issued
12.4 Collection of instruments and issue of
DD / MT should be levied with regular
service charges (Other than those
mentioned in 12.1 )
20.2 Branches are aware that the Applicants/Accountholders of No Frills SB Accounts may
not be well informed / too literate to understand the nuances of banking and their
plight can effectively be addressed only through personalised counselling by the
operational staff. This exercise needs to be carried-on on an on-going basis by the
workforce who should continue to display perseverance, patience and empathy
towards the population who are yet to get access to the banking-services.
20.3. These accounts should be subjected to application of full KYC procedures as and
when loans are sanctioned to the accountholders of No Frills SB accounts, other
than through financial inclusion.
20.4 Photographs of the applicants affixed in the account opening form should be
attested by the introducer ( if introduction is available )
20.5 The terms and conditions of the “ No Frills accounts “ should be explained to the
applicants , preferably in the local Regional Language.
:15:
21. Special products : IOB- SB Silver and IOB-SB Gold
21.1 IOB-SB Silver
1. Name of the scheme : 'IOB- SB Silver'
2. Target group: Individuals including those employed in reputed companies, among
Software, Public /Private sector, Govt.
3. Type of deposits: Savings Bank account.
4. Minimum balance requirement: While opening the account, the account can be
opened with '0' balance. The account provides certain concessions and in order to
be eligible for the concession, average daily balance in the account during the last
three months should not be less than Rs.5, 000.
5. Special features / concessions
a. ATM cards on day one
b. International Debit Card without charges.
c. Internet banking (E see banking).
d. Monthly account statements over E-mail
e. SMS alerts for daily transactions.
f. Transfer of funds through NEFT free of cost
g. Personal Accident insurance cover of Rs. one lakh free of cost.
h. Anywhere Banking in CBS/TBA branches.
i. ATM usage at any Bank free.
j. RTGS free of charges.
k. Online Tax payment facility.
l. Overdraft facility up to one-month salary in case of salary earners.
m. Utility Bill payment facility – Rent/school fees/college fees/ donations/ IOB
credit card bills/utility bills/ Telephone bills
n. Facility for family Health Insurance – IOB-healthcare Plus.
o. PAN / TAN facilitation.
p. Facility for automatic transfer of balance in SB to Term Deposit – If the
quarterly average balance is Rs.25000/- and above, this facility is offered.
Wherein the balance exceeding Rs.35000/- will be swept out in units of
Rs.2000/-and kept in TD.
21. 2 IOB-SB Gold
1. Name of the scheme: ” IOB- SB GOLD "
2. Target group: All individuals including professionals such as doctors, Lawyers, CA.s,
Executives working in MNC, Software Companies, Public/ private sector and business
people, High Net Worth individuals, CEOs, IAS and IPS.
3. Type of deposits: Savings Bank account.
:16:
4. Minimum balance requirement: The average daily balance over the last three months
should not be less than Rs.50000.
a. If the quarterly average balance is between Rs 50000 and less than Rs
100000, the balance exceeding Rs 65000 will be swept out and kept in TD.
b. Similarly, if the quarterly average balance is Rs. 100000 and above, the
balance exceeding Rs125000 will swept out and kept in TD. The
customers of this category are also eligible for Online equity trading facility and
Overseas Travel card free of charge.
5. Special features / concessions
a. ATM cards on day one
b. International Debit Card without charges.
c. Internet banking (E see banking).
d. Personalised Multi city cheques issued at MICR centres free.
e. Monthly account statements over E-mail
f. SMS alerts for daily transactions.
g. Transfer of funds through RTGS without charges.
h. Transfer of funds through NEFT without charges
i. Facility for automatic transfer of balance over a prescribed limit of Rs.50, 000 in SB
account to term deposit account and retransfer to SB ( Liquideposit facility).
j. Personalised cheque books with name printed free of cost.
k. Personal Accident insurance covers of Rs. five lakhs free of cost.
r. Facility for family Health Insurance – IOB-healthcare Plus.
s. PAN / TAN facilitation
21.3 For operational convenience for providing liquideposit facility, the SB special
products are grouped in the system as below:
IOB-SB Silver – I : Quarterly average balance between Rs. 5000 and less than Rs.25000
are not eligible for liquideposit facility.
IOB-SB Silver – II : Quarterly average balance of Rs 25000 and above. If the
quarterly average balance is Rs.25000/- and above,
liquideposit facility is offered. Wherein the balance exceeding
Rs.35000/- will be swept out in units of Rs.2000/-and
kept in TD.
:17:
IOB-SB Gold – I : Quarterly average balance between Rs 50000 and less than
Rs 100000: If the quarterly average balance is between
Rs 50000 and less than Rs.100000, the balance exceeding
Rs 65000 will be swept out and kept in TD.
IOB-SB Gold – II: Quarterly average balance of Rs 100000 and above. If the
quarterly average balance is Rs. 100000 and above, the
balance exceeding Rs125000 will swept out and kept in
TD. The customers of this category are also eligible for Online
equity trading facility and Overseas Travel card free of charge.
21.4 Liquideposit Scheme
A facility provided for special SB/CD customers. This facility combines the advantages of
both SB. and Term Deposits giving liquidity as well as higher return on investment. The
balances in the SB. account over a specified limit are automatically transferred to Term
Deposit and back when required by the depositor.
1 Target Group
All resident individuals in their individual names or joint names can open SB account.
But, first named constituent alone is taken for the purpose of ascertaining the
deposits, interest rate, TDS etc. Certain bodies or Organisations who are eligible for
opening SB. accounts are also eligible to open this account. NRE SB is excluded
from Liquideposit scheme.
2. Opening of Account
Apart from fulfilling the formalities for opening SB. account, an undertaking letter
agreeing to the conditions of "Liquideposit" should also be taken as per Annexure II.
3. Minimum balance in SB account
Minimum balance of Rs. 25,000 is required for availing liquideposit facility.
4. Transfer to Term Deposit Account
The balances in the SB. account over a threshold limit of Rs.35,000/- for SB-Silver -II,
Rs 65000 for SB-Gold-I and Rs.100000 for SB-Gold-II will be transferred to Term
Deposit account. The transfer is done automatically by the system. The transfer is
done at the end of the business hours and, therefore, there will be only one transfer to
Term Deposit in a day.
5. Period of Term Deposit
The amount transferred from SB. to Term Deposit will be placed for a period of 6
months. There is no choice for the depositor to decide the period of deposit.
6. Type of Term Deposit
The amount transferred from SB. to Term Deposit will be placed under Re-investment
Deposit Scheme only.
7. Renewal of Term Deposit
The RDP opened by transfer from SB. will be automatically renewed, on due date, for
a further period of 6 months.
:18: 8. Rate of interest
Balance in the SB account is eligible for SB interest in force, i.e., 3.50% p.a. The
amounts placed in Term Deposits will be paid interest at the prevailing rate on the date
of placement of each deposit, applicable for 6 month deposit. The present rate for a 6
month deposit is 6.00% p.a.
9. Maintenance of Term Deposit
Each transfer from SB will be treated as a separate deposit and due date fixed
accordingly. The deposits are to be kept in units of Rs.2,000/-.
Therefore, a Rs.10,000 transfer will be kept as 5 deposits of Rs.2,000/- each. The
depositor will not be given a printed deposit receipt but a statement of account will be
given.
10. Withdrawal of Term Deposit
If the depositor wants to withdraw money from SB either across the counter or by
issuing cheques to third parties and if sufficient balance is not available in the SB
account, the required number of units will be closed from the Term Deposit account
and transferred to SB account to meet the withdrawal. The last transfer made to Term
Deposit will be closed first under Last In First Out (LIFO) method. Interest will be
paid on completed months only.
11. Premature Closure of Term Deposit
In case there is a necessity to close the deposits before the maturity date, the interest
on the deposits will be paid in terms of the extant guidelines on premature closure of
term deposits which are as follows :
� If the minimum period of 30 days is completed, the interest payable for deposits up to
Rs.5 lakh is the applicable rate for the period the deposit remained with the Bank.
� If the deposit amount is more than Rs.5 lakh a foreclosure charges of 1.00% is
deducted from the applicable interest for the period the deposit remained with the
Bank.
12. Loan on Term Deposit
No loan is envisaged as the system allows easy premature closure of required amount
only for meeting withdrawal.
13. Opting out of the scheme by the depositor
If the depositor wants to withdraw from "Liquideposit" scheme, he may do so by
requesting in writing. The Term Deposits can be allowed to be continued as normal
deposits if the depositor so desires.
14. Additional interest rates for term deposits
Staff members and Senior citizens will not get the additional interest under
Liquideposit scheme.
15. Implementing branches
The scheme can be implemented only in fully computerised environment and,
therefore, the scheme will be implemented only in CBS branches
21.5 Guidelines on Special products
a. At present, these special products are marketed through all CBS branches.
b. All existing customers as and when they request and new accounts at the time of
opening the account are eligible under the scheme. Staff accounts are also eligible
provided they comply with all the norms of the scheme. The format of request cum
undertaking letter is given in para 20.6.
c. The Bank shall review special status of accounts under various schemes on a
quarterly basis (June, September, December and March). If the required minimum
balance is not maintained, the special status of the account will be cancelled, the
account decategorised and the concessions recovered from the customers.
d. Under liquideposit facility, the balance in the SB account alone will be considered for
computing average balance for determining the special status.
e. The balance in Term Deposits is eligible for interest only when the balance remains
in TD for more than 30 days.
f. For computing quarterly average balance, only completed calendar quarters will be
reckoned. Same norm will apply if existing / new customers request special status
in the middle of a quarter.
g. For Internet banking and online Tax payment, all accounts should be registered for
internet banking. For e-mail and SMS alerts, the e-mail ID/ cell numbers
respectively of the customers should be registered.
h. Features / concessions falling within the control of the branch:
� Transfer of funds through NEFT
� Waiver of Demat charges
� Concession on cheque books
� Transfer of funds through RTGS
i. Features/concessions under system’s control
i.e. The system will prompt the user to enter the current a/c no at the time of DD
posting and extend the concession if the a/c no falls under any of the eligible
schemes.
➳ Issue of DD
➳ Cheque collection charges
➳ Folio charges
j. Utility Bill payment facility – Available to customers who have registered for E-See
banking.
k. Online trading facility – Our customers who open demat account with M/ s MF
Global Sify Securities (www.mfglobal.in) can do online trading at the site. For
payment instructions they have to use our bank’s internet facility using the drop
down menu available at the site under transfer of funds option.
l. Non-personalized ATM cards are to be given to the customers on day one.
m. Branches should comply with all norms of account opening and obtain customers’
undertaking in the relevant formats for extending facilities under these products.
n. Overdraft facility of one month’s salary under SB-Silver can be extended after
verifying salary certificates and after obtaining necessary documents.
o. The facilities under these special products can be utilised by the CBS branches for
retaining the existing customers. However, more thrust should be given for
mobilising more number of new accounts for improvement of CASA.
p. Regional Heads should activate the marketing team in the Region and ensure that
the groups targeted under each product are contacted personally for mobilising
their accounts.
q. All branches should extend excellent customer service for mobilising more new
customers and retaining the existing customers.
r. The customers of special accounts should be provided with a kit containing ATM
card, cheque book, pass book, SB/CD rules, codes of BCSBI, schedule of
charges, in a specially printed envelope each for SB-Silver, SB-Gold, CD-
Classic and CD-Super respectively.
For requirement of kit materials, branches and Regional Offices are requested to
take up with Printing and Stationery department and I.T department respectively.
Branches are to use the ‘SB/CD rules – 2007’ book already supplied by CO to RO in
adequate quantity as a kit material.
s. Branches should ensure that the facilities available for the products are made
immediately available to the customers. For facilities like Multicity Cheques, name
printed cheque books, overseas travel card etc, branches should make them
available to the customers at the earliest by immediately taking up with the
concerned layer of authority.
21.6. Application for "Special SB” Account
(Annexure to Savings Bank Account Opening form)
Indian Overseas Bank
……………………………………………….. Branch
SB Account Number : …………………………………….. Opened on : ………………………
1. Name of the Depositor(s) 1.
2.
3.
2. Address of Depositor(s) 1.
2.
3.
3. I / We wish to open a special SB account and agree to the terms and conditions
governing the scheme which may be in force from time to time.
4. Please transfer to the term deposit account for a period of 6 months all amounts over
the threshold balance of Rs.35,000/65000/125000 and in units of Rs.2,000/- from
my S.B A/C No._______
(The period of deposit can be 6 months only)
5. I / We agree to maintain a minimum quarterly average balance of Rs.25,000/=
50000/=/100000/= always in S.B account
6. I / We authorise you to automatically renew the term deposit on maturity date for
an identical period of 6 months at the interest rate prevailing at the time of such
renewal
7. I / We agree that the balance amount held in Savings Bank A/C will only earn S.B
interest which at present is 3.50%
8. I / We agree to receive periodical statement of account (Instead of printed deposit
receipts) for the amounts held in term deposits
9. In case the balance in S.B a/c is insufficient to meet withdrawals in any form and /
or any cheque received in clearing or otherwise or is below the required minimum
balance of Rs. 25,000/-/50000/-/100000, I / We agree to your transferring required
number of units – interest earned from the units closed will not be considered and
principal alone will be reckoned for this purpose - from the term deposit account to
S.B account, even if it means premature closure of some or all of the units, in order
to meet the shortfall in the S.B a/c. The units last transferred to Term Deposit will
be closed first whenever such transfer to S.B is required under last in first out
method.
10. In case of premature of closure of units in Term Deposit either as required in point
No.9 or at my / our request, I / We agree to receive the interest on the
prematurely closed units as follows:
I. If the deposit (units) has not completed 30 days from the date of transfer to
Term deposit / or from the date of renewal no interest is payable.
II. If the deposit has completed > 30 days from the date of transfer to Term
Deposit / or renewal
a) Interest at applicable rate for the period the units have run prevailing at the
time of transfer or renewal is payable, if the total amount of units closed at
one time is not more than Rs.5 lakh.
b) If the total units closed at a time are more than Rs.5 lakh, interest payable
is 1.00% less than the applicable interest for the period the deposit has run
prevailing at the time of transfer / renewal.
c) The additional interest is not allowed for term deposits of senior citizens and
staff of IOB.
11. I / We understand that no loan can be raised against the balance amount or
accrued interest in Term Deposit account.
12. I / We agree to deduction of Tax at source on interest earned on Term Deposit as
per income tax rules in force.
13. I / We agree that the account cannot be transferred to another branch. In case I /
We want to operate the account in another branch I / We agree for closure of the
Liquideposit account, which may also involve premature closure of some of the
units and open a fresh deposit at the other branch.
14. I/We understand that the terms and conditions relating to premature closure,
interest rates and closure of deposits are subject to change from time to time
without notice.
15. I / We agree that any addition / deletion of names in the case of joint account is
applicable for both the S.B portion and Term Deposit portion of the Liquideposit.
16. I / We agree that any overdraft created in the S.B a/c during business hours is only
for operational convenience and the overdraft will be adjusted at the end of the day
by transfer from Term Deposit. I / We agree not to demand any overdraft facility
on the basis of the overdraft created temporarily.
17. I / We understand that any Garnishee Order / Income Tax attachment order etc.,
received will attach both the S.B and Term Deposit portions. I / We also understand and
agree that during the period the Garnishee Order / I.T. Attachment order etc, there will be
no renewal also of the matured Term Deposits/ no creation of fresh deposits and no
operation will be allowed in SB account. Upon the vacation of the Garnishee / I.T.
Attachment order etc. the matured deposits will be treated as overdue deposits and I / We
agree for their renewal under the guidelines for renewal of overdue deposits prevailing at
that time.
Place: Signature of Depositor(s)
22. SAVINGS BANK ACCOUNTS UNDER CAPITAL GAINS ACCOUNTS SCHEME, 1988
22.1. Branches situated in non-rural areas can accept deposits under the above scheme
to enable the tax payers to avail of the benefit of exemption from Capital gains.
Such an exemption can be claimed by the tax payers only if the amount of capital
gains or the net consideration is deposited in the Bank account on or before their
due date of filing a return of income in accordance with the scheme.
These accounts can be opened only by those tax payers who are eligible for
exemption under Section 54, 54-B, 54-D, 54-F OR 54-G of the Income Tax Act,
1961 (43 of 1961).
22.2. Authorised branches may open Savings Bank accounts under the above scheme as
per the guidelines given in the succeeding paragraphs.
22.3. The accounts opened under Savings Bank account are to be classified under
Deposit Account - A under the General Ledger head SAVINGS BANK (CAPITAL
GAINS ACCOUNTS SCHEME, 1988) WITH CODE NO 1203 and shown under
Demand Liabilities in the General Ledger balance sheet. Accounts opened as Term
Deposits are to be classified under Deposit Account – B under the General
Ledger head Term Deposits (Capital Gains Accounts Scheme, 1988) with
Code No.1010.
22.4. OPENING OF ACCOUNTS UNDER CAPITAL GAINS ACCOUNTS SCHEME, 1988
ACCOUNTS UNDER THIS SCHEME MAY BE OPENED AS SAVINGS BANK
ACCOUNTS DESIGNATED AS DEPOSIT ACCOUNT – A UNDER THE SCHEME
AND/OR TERM DEPOSITS DESIGNATED AS DEPOSIT ACCOUNT-B UNDER
THE SCHEME. ( For term deposits scheme branches shall refer to the
master circular on term deposits )
i) All formalities for opening of accounts viz., completion of the relevant application
form, specimen signature sheets, obtention of satisfactory introduction etc. should
be complied with by the branch before opening an account under this scheme.
Joint Accounts are not permitted under Capital Gains Accounts Scheme. KYC-
Norms / AML Standards will also apply to these accounts.
ii) Branches shall use the account opening form FORM - A (specimen provided in
Annexure II) for opening of Savings Bank accounts under the scheme.
iii) All the relevant columns in the form should be completed and the specific section
of the Income Tax Act under which the depositor is claiming exemption should be
noted clearly.
iv) Once the completed application form is received, the officer-in-charge of the
department should verify that all particulars have been incorporated in the
application form. He/she should then, obtain the approval of the Manager/Deputy
Manager for opening the account. The account may then be opened under
Savings Bank (Capital Gains Accounts Scheme,1988).
v) Deposits may be made in lumpsum or in installments at any time on or before the
due date of filing the return of Income Tax as applicable to the depositor under
the Income Tax Act.
vi) Separate accounts should be opened if the depositor intends to avail the benefit
under more than one of the above sections of the Income Tax Act.
vii) Branch may accept the deposit either in cash or by crossed cheque or by draft
(subject to realisation) along with the application. Subsequent deposits should
also be made at the same branch where the original account has been opened.
The effective date for claiming exemption under the Act in the case of deposits by
cheque/draft will be the date of tender of those instruments subject to their
realisation.
22.5. OPERATIONS IN THE ACCOUNTS UNDER CAPITAL GAINS ACCOUNTS
SCHEME, 1988
i) Authorised branches should issue Savings Bank pass books to the
depositors recording all deposits, withdrawals together with interest
due, duly authenticating all the entries. These Passbooks should
never be retained by the branch. Cheque Book facility is not
permitted in view of the system of withdrawal through submission of prescribed forms as per the schedule.
ii) For initial withdrawal, the depositor should apply in Form- C
(specimen provided in Annexure IV) and for subsequent
withdrawals in Form -D (specimen provided in Annexure V) (in
duplicate) additionally. Branch should preserve one copy of Form D and
return the other to the depositor. Such Form-D should be kept stitched
along with the day’s voucher. Branches should refuse withdrawal
unless Form -D is filled up with complete details and duly
signed.
Withdrawals for amounts exceeding Rupees Twenty Five thousand
should be paid to the depositor only by way of crossed demand draft
drawn in favour of the person to whom the depositor intends to make the payment.
iii) Interest
Interest on Savings Bank accounts opened under the scheme shall be paid
at the rates applicable for ordinary Savings Bank accounts and in the
same manner. Interest on amounts deposited by cheques will run from the
date of their realisation. Minimum half-yearly interest payable will be Rupee One.
iv. Transfer of the account from one branch to another of our bank is
permitted on application by the depositor.
v. Utilisation of the amounts withdrawn from the account is subject to the
relevant provisions of the Income Tax Act. The unutilised amounts out
of the withdrawals may be permitted to be deposited back into the
account immediately after the expiry of sixty days from the date of
withdrawal.
22.6. NOMINATION for Capital Gain scheme accounts
Branches are permitted to accept one or more nominations for the accounts opened under
the scheme
22.7. Branches are permitted to convert balances under savings bank accounts under
the scheme into Term deposits (under Account-B) and vice versa. Deposits made
in the form of term deposits under the scheme are classified under Account-B –
Term Deposits (Capital Gains Accounts Scheme, 1988).
Such applications should be made on Form - B (specimen provided in
Annexure III) (for detailed guidelines on term deposits under the scheme
branches are to refer to master circular on term deposits.
22.8. CLOSURE OF ACCOUNTS UNDER CAPITAL GAINS ACCOUNTS SCHEME,
1988:
Accounts under the scheme may be closed only with the prior written approval of
the Assessing Officer (Income Tax Department, Government of India) having
jurisdiction over the depositor.
The depositor should apply to the Assessing Officer for closure of the account and
branches can pay the amounts including accrued interest, if any, only after obtaining the
specific written approval of the above authority and the application for closure of account
in Form G (provided in Annexure VI) duly completed and signed by the depositor The
proceeds of the account thus closed should be paid only by credit to the depositor’s
account at any Bank.
Regarding payments to nominees or legal heirs branches should refer to master circular
on nominations.
22.9. Authorised branches should advise the following details monthly to Government
Accounts and Currency Chest Department, Central Office, with a copy to Regional Office for purpose of control, feed back to Reserve Bank of India/Government authorities.
*********************************
PARTICULARS OF DEPOSITS RECEIVED UNDER
CAPITAL GAINS ACCOUNTS SCHEME 1988
I. ACCOUNT A
Sl No.
Name of Account
Holder
Balance as on
Opened under Section
No....... of IT Act
1 2 3 4
II. ACCOUNT B
Term
Deposit
receipt no.
Nature
of
Deposit
Full Name &
Address
Amoun
t
Perio
d
Due
Date
Opened
under Sec.
No.... of IT
Act
1 2 3 4 5 6 7
I. Details of transfer/withdrawals/conversion of any existing accounts
(if otherwise state NIL)
Account No. Nature of transactions
IV. SUMMARY
Account A
Account B
Balance as per General Ledger
as at close of previous month Rs. .................. Rs. ..................
ADD receipts during the month Rs. .................. Rs. ..................
LESS
withdrawals/conversions/transfers/
closures etc.
Rs. .................. Rs. ..................
Balance as per General Ledger
as at close of month under report
22.10. Formats for Savings bank – Capital Gains account scheme1988
Deposit office mentioned in the forms relate to our bank.
THE CAPITAL GAINS ACCOUNTS SCHEME 1988 BY THE DEPOSITOR.
To
The Manager
___________________
___________________
(name & address of the deposit office)
1. I, __________________________ (Name of the *depositor/*Applicant)
aged_______ years, son of ________ residing at _______________ (Address
of the depositor/*applicant) hereby apply in terms of sub-paragraph(i) of
paragraph 13 of the Scheme, to close the *account\accounts mentioned
below, which *is/*are maintained with your office *in my name/in the name
of ______________ (name & address of the depositor)
2. Details of Account/Accounts:
(i) ACCOUNT-A NO:________________ Pass Book No.________________
(ii) ACCOUNT-B NO:________________ Deposit Receipt No. _________
3. I tender herewith the *Pass book/ *Deposit Receipt mentioned herein above.
4. The application is made by me as guardian on behalf of aforesaid depositor,
who is a minor and whose date of birth is ________________
5. The application is made by me as authorised officer of the aforesaid depositor,
the *firm ______ / _____ *company, association of persons ______ body of
individuals __________.
6. The application is made by me as Karta of the aforesaid depositor
________________ a Hindu undivided family.
Date: SIGNATURE/THUMB IMPRESSION OF THE DEPOSITOR/THE
GUARDIAN/ KARTA/ AUTHORISED OFFICER OF THE
DEPOSITOR
Place
ADDITIONAL SPECIMEN
A P P R O V E D
(Signature (with date) and stamp of Assessing Officer having jurisdiction)
FOR THE USE OF DEPOSIT OFFICE
(Details of *Account/*Accounts closed and total amount paid may be recorded)
1. ____________________________
2. ____________________________
3. ____________________________
4. ____________________________
5. _____________________________
Date: ............... OFFICER-IN-CHARGE
Notes:
1. Delete whatever is not applicable.
2. Columns 4,5,6 pertain to deposit on behalf of a minor, firm, company,
association of persons, body of individuals, Hindu undivided family.
Hence in case of individual depositor these columns may be scored out.
In other case, only one respective column may be retained and the
remaining two may be scored out.
22. SAVINGS BANK RULES
As per commitment given to BCSBI our bank has to make available the savings
bank rules in our bank’s website, also in hard copy to every customer. The rules
are printed and circulated to branches for this purpose. The rules as a small booklet are also made available in KITs given to SB- Special products customers.
Branches should ensure that the rules are posted in the branch notice board also
for the information of the customers.
The rules are reproduced here for the information of the branches.
INDIAN OVERSEAS BANK
SAVINGS BANK RULES (2007)
1. Any person approved by the Bank may open a Savings Bank account upon agreeing to
comply with the following rules:
1-A. A Savings Bank Account may be opened by:
a a person in his/her own name;
b two or more persons in their joint names payable to:
i) both or all of them or to the survivor or survivors of them;
or
ii) either or any one or more of them or the survivor or survivors of them
c. a natural guardian i.e. father or mother on behalf of the minor
d. a natural guardian i.e. father or mother in the joint names of himself/herself
and the minor payable to either or survivor;
e. a person in the name of any minor of whom he or she is the guardian appointed
by the Court;
f. a minor of age ten and above in his/her single name to be operated upon by
himself/herself.
2. Significance of various mandates applicable for Savings and Current Deposit
Accounts is explained below:
Accounts in the names of two or
more persons with Mandate as Explanations
a. Jointly by all the Depositors Operations in the account would be permitted
only under joint signatures of all the depositors,
and, upon the death of one of them, operations
would not be allowed, as the balance is payable
to the survivor(s) and the legal representatives
of the deceased person. So also for the closure
of the account.
b.i
ii
Both or Survivor
All or Survivors
Operations in the account would be permitted
only under joint signatures of all the depositors
as long as all the depositors are alive, but upon
the death of one of them the balance will
become payable to the survivor or survivors
without reference to the legal representatives of
the deceased. When the survivors want to close
the account they may do so subject to
production of death certificate of the deceased
account holders.
c. i Either or survivor Operations will be allowed by either of them
during their lifetime and by the survivor when
one of them dies. Closure of accounts and/or
transfer to another branch would be permitted
only at the written request of both the account
holders when both are alive. When the Survivor
wants to close the Account he/she should
submit the death certificate of other account
holder.
c. ii Anyone or survivor Operations will be allowed by anyone of the
depositors during the lifetime of all of them.
However, closure of accounts and/or transfer to
other branches would be permitted only at
written request of all the account holders. It
also follows that upon the death of one of the
depositors the balance is payable to the
survivor(s) without reference to the legal
representatives of the deceased. When the
survivors want to close the account it can be
done subject to production of death certificate
of the deceased account holders.
d. Former or Survivor Operations will be allowed by the Former only
and only on the death of the former, the
account will be allowed to be operated by the
survivor. Closure of accounts and/or transfer to
another branch would be permitted only at the
written request of both the account holders.
When Survivor wants to close the account
he/she should submit the death certificate of
the Former.
2-A. Accounts under 1-A (c) & (d) will be opened where the funds to be lodged comprise
the guardian’s own funds and his/her intention is, in the case of 1-A (c) to utilise
the moneys for the benefit of the minor and to eventually make over the balance
lying at credit of the account available to the minor on his/her attaining majority
and in the case of 1-A (d) to provide that with effect from the date the minor attains
majority, the account be operated by the minor also.
In the case where the funds with which the account in the name of the minor is to
be opened devolve upon him/her by gift, inheritance etc., or where the Bank at its
discretion, so considers it necessary, the account in the name of the minor will be
permitted to be opened only by a guardian appointed by a Court, vide rule 1-A (e)
and the guardianship certificate must embody an express authority to open and
operate an account with the Bank.
2-B. In the case of accounts under rule 1-A (c) & (e), upon the minor attaining
majority, the right of the guardian to operate on the account will automatically
cease. Any balance in the account will be deemed to be the exclusive property of
the minor who has attained majority and further withdrawals will be allowed by
him/her alone and not by the guardian.
In the case of an account opened under rule 1-A (d) the minor on attaining majority
will also be permitted to operate on the account on completion of the necessary
formalities.
In the event of the death of the guardian before the minor attains majority, the
balance in the account would be payable to the minor on his/her attaining majority
or to some other person appointed by a competent court as the guardian of the
property of the minor or trustee on behalf of the minor prior to his/her attaining
majority.
NOTE: A minor for whom a guardian is appointed by a Court attains majority on
completion of Twenty One years of age. Otherwise he/she is deemed to
be a major on completing Eighteen years of age.
2-C. In the case of accounts under rule 1-A (f) not withstanding what is stated in the
rules to follow, withdrawals will be permitted only by cheques, necessitating
compliance of the formality with regard to introduction referred to in rule 9 and the
maximum balance in the account shall be restricted to Rupees Fifty thousand only.
3. Accounts may be opened in the names of clubs, associations, societies, educational
institutions and Hindu Undivided Family so long as the account is
not used for conducting trade and the Bank is satisfied that the account is
opened for genuine savings purposes.
3.a Accounts may be opened for blind persons or for illiterate persons using thumb
impression. Such persons should call on the bank to withdraw cash along with
passbook. No Cheque books would be issued to such persons.
4. Savings Bank Accounts would not be used as Current Accounts, that is for trading
purposes. It should be used for genuine savings purpose only.
5. Minimum balance and penalty charges for non maintenance of minimum
balance:
Category With cheque facility Without cheque
facility
Penalty for non
maintenance
Rural & Semi urban
branches
Rs.500/- Rs.100/- Rs.7 per month
Other branches Rs.1000/- Rs.500/- Rs.14 per month
Pensioners’ SB acc Rs.250/- Rs.5/- As above
When the facility of withdrawal by cheque is permitted, stipulated minimum
balance shall always be maintained in the account except in the case of
accounts opened by minors under SB Rule 1-A(f). The Bank however reserves the
right to refuse this facility without assigning any reason whatsoever.
5a. Deposit of cash and cheques/DDs/interest warrants/electronic transfers
A depositor may deposit money as often he/she wishes. There is no ceiling on the
interest-bearing maximum balance in a Savings Account. For cash deposited for
more than Rs.50000/- customer should write down the PAN number in the deposit
slip. If no PAN number is allotted to the account holder then he/she should furnish
Form.60 (Non Agriculture) / Form.61 (Agriculture) as the case may be. Cash and
cheques to be deposited should be handed over to the respective counters and no
individual outside the respective counters have any authority to receive them.
Customers can avail the drop box facility to deposit the cheques and in case an
acknowledgement is needed they should deposit the cheques in the counters only.
6. Cheques, drafts, dividend warrants and other instruments drawn payable to the
depositor only will be accepted for collection.
Where any cheque drawn on the account is returned for want of funds charges
prevailing on the date of such return will be levied for every cheque so returned upto
three time i.e. for the first three returns and thereafter, the account will be closed with
due notice.
7. HOW TO OPEN AN ACCOUNT
Persons desiring to open a Savings Bank Account must attend the Bank, when he/she
will be furnished with a copy of these rules and a form of an application to open an
account.
7(a) Every deposit account opened with the Bank would carry a nomination and the
depositor(s) shall at the time of opening the account nominate an individual (not
being a minor) of his/her/their choice and submit the application along with the
nomination form (annexed to the account opening form) duly filled in and signed.
Nomination in two or more names/ proportionate nomination is not possible. The
nomination can be changed at any time by making an application by all account
holders to the bank.
8. When an applicant is unable to write he/she will affix his/her left hand thumb
impression in the presence of a witness known to the Bank. Withdrawals for such
accounts will be by withdrawal forms only.
9. The applicant must be introduced to the satisfaction of the Bank. However if a
customer is able to produce documents to identify himself and for address proof to the
satisfaction of the bank, the account may be opened by the bank at its discretion.
10. Every depositor is required to give two copies of latest passport size photographs and
the specimen of his/her signature in duplicate for record. The signature must be
legible and well formed. All withdrawal forms, cheques and letters to the Bank must
be signed strictly in accordance with such specimen.
10.a. Along with the applications, every depositor is required to furnish a CROP
(Customer's Record of Profile) Form duly filled in and signed to comply with Know
Your Customers norms as prescribed by RBI. This form would be updated every
year by the customer.
Bank will normally accept the following documents for identification and address
proof:
•••• Current gas connection papers
•••• Telephone bill
•••• Electricity bill
•••• Voters’ ID card
•••• Driving Licence
•••• Passport
•••• Any other document approved by the bank
(Originals should be submitted with a photocopy. After perusal original will be
returned by the bank)
Every Customer should furnish the PAN Number in the account Opening Form. If
no PAN No. is allotted to him /her, declaration in Form.60 (Non Agriculture) /
Form.61 (Agriculture) should be furnished. The relative forms are available with
the bank.
Following types of Customers have to submit additional papers
Hindu Undivided Families (HUF)
A HUF letter in bank's standard format signed by the Karta and all the major
Coparceners of the HUF
Trust :
a. Certified copy of the trust deed
b. Where a trust is a charitable trust, a certified copy of the certificate from
the charity commissioner
c. Where there is no trust deed, a certified copy of the order from a
competent court
d. Certified copy of the resolution regarding opening and conduct of the
account
e. List of present trustees with bio data of each trustee
a. Certified true copy of the Rules, Regulations, Bye-laws (as the case may be)
b. Certified true copy of Certificate of Registration or incorporation in the case of
registered bodies (originals will be verified and returned)
c. A Certified true copy of the Resolution (certified by the Chairman of the meeting
of the Governing Board or Managing Committee or like body, at which it was
passed) authorising opening of an account with the Bank and giving the list of
office bearers authorised to operate the account in accordance with the rules and
bye-laws of the body.
d. A copy of the Balance Sheet in the case of a co-operative society, if available.
e. In some states, the Co-operatives to open account with a bank other than a co-
operative bank need permission from the Registrar of Co-operative Societies. In
such cases a copy of such permission.
11. ADDITIONS / DELETIONS OF AN ACCOUNT HOLDER
A request letter signed by all the account holders should be submitted to the bank for
appropriate action. In case of an addition, Know Your Customer Procedure for the
person to be added will have to be compiled with.
12. When the application duly completed is presented at the Bank with the initial deposit,
the amount deposited will be entered in a passbook to be supplied to the depositor
and the entry therein will be initialed by an authorised official of the Bank.
13. PASS BOOK
The Pass Book will show the number of the depositor’s account, his/her name and
address. It must be presented for all withdrawals other than those by cheques. In
case of withdrawals by cheque, the pass book would be presented within a week from
the date of withdrawal, when such deposits and withdrawals will be entered and the
pass book immediately handed back. The depositor would examine the entries in the
pass book carefully and draw the Bank’s attention to any errors or omissions that
he/she may notice. The Bank will not be responsible for any entries not
authenticated under the initials of its authorised persons.
(Where there are large number of entries, the pass book may be retained by the Bank
and a paper token will be issued. The depositor would arrange to collect the pass
book from the Bank within a week by returning the token, failing which, the pass
book will be despatched to the account holder by registered post at his/her cost.).
14. Depositors are requested to keep their passbooks in a place of safety. The Bank will
not be responsible for any loss or fraudulent withdrawal arising out of the loss of a
passbook due to a depositor’s negligence. Every change of address would be
intimated immediately to the Bank and the passbook sent for necessary corrections
to be made.
15. LOSS OF PASS BOOK
In case of Joint Account if the passbook is lost, all the account holders should make
application for duplicate passbook. In case of E or S account, any one of the account
holders can apply for the duplicate passbook. No charge will be made for the pass
book first supplied to a depositor or for any pass book issued to him/her in
continuation of the original book; but if a pass book be lost or spoiled (except
under circumstances over which the depositor has no control) the depositor will be
charged Rupees Twenty only per Pass Book at non-rural branches and Rupees
Sixteen only per Pass Book at Rural branches, for Duplicate book starting with the
balance made up of the principal and interest last applied. If the depositor wishes
that it is to be written up for a specific period, an extra charge of Rupee 20/- per
ledger page or part there of in the case of non-rural branches and Rs 16 per ledger
page or part there of in the case of rural branches will be recovered. (for accounts
maintained on computers 40 entries or part there of will be treated as one ledger
page).
16. LIMITATION OF WITHDRAWALS
Number of withdrawals permitted is fifty per half year in a financial year. For
accounts opened in the middle of the half-year permissible withdrawals will be
calculated pro-rata.
17. If the number of debits in the account exceeds the permitted limit or if the minimum
balance requirement is not complied with as per rule 15 or 16 above respectively, a
reasonable service charge shall be levied to cover the cost.
18. STANDING INSTRUCTIONS
Standing instructions for remittances of Insurance Premia etc., are accepted from
depositors and every debit thereunder will be treated as a withdrawal. Bank will also
register the mandate for ECS debits in a account.
Service charges, as applicable to the services rendered in accordance with the
standing instructions of the depositor, will be levied, in addition to recovery of out of
pocket expenses such as postage, telex/telegram/telephone charges, Money Order
commission paid, etc.
19. WITHDRAWALS
Money deposited in an account opened on behalf of a minor will be permitted to be
withdrawn during the minor’s minority only by the guardian. The guardian shall
have no power to draw subsequent to the minor attaining majority. The guardian
will also have no power to draw in the event of the minor dying during minority,
except in the case of an account opened by a natural guardian under rule 1-A (c)
where the balance may be permitted to be withdrawn by the guardian on completion
of the necessary formalities.
20. A depositor cannot withdraw a smaller sum than one rupee unless it be to close the
account, in which case the entire balance of the account will be withdrawn. No
cheque shall be drawn for amounts below Rupees Five only.
21. If the depositor is unable to write, he/she must call on the Bank personally to
withdraw money from his/her account. In case of aged or bedridden person, the
bank will depute at depositor's cost a person or Official from the bank to obtain the
signature/thumb impression duly witnessed.
Debits to customers' accounts other than cheque may be effected in the
following circumstances :
✤✤✤✤ Effecting of standing instructions ✤✤✤✤ Recovery of interest, service charges, commission etc., ✤✤✤✤ Recovery of instalments on loans ✤✤✤✤ Recovery of amounts wrongly credited or wrongly omitted to be debited to the
customers accounts
CHEQUES :
22. Withdrawals may be made by cheque forms supplied by the Bank. The Bank reserves
its right to refuse payment of any cheque not drawn on a cheque leaf issued to the
customers. Cheque books will normally be issued to a depositor on personal
application only; if for any reason this is not possible, the cheque books will be
despatched by Registered Post and the postage incurred will be charged to the
account. Cheque books requested through a third party with the requisition slip duly
signed by the account holder may be issued by the bank, provided the bank is
satisfied with the credentials of such third party.
23. (i). At any one time not more than a chequebook containing 20 cheque leaves would
be issued. If more than 20 cheque leaves are required a specific application with
reasons thereof should be made to the branch manager with reasons for additional
chequebook which would be approved/declined at the Regional Office.
22.(ii). Cheque leaves issued more than 60 in number per annum would be charged at
the rate of Rs.2.25/= per MICR cheque leaf and Rs.1.15 per Non MICR Cheque
Leaf
22.(iii). At the time of receiving the cheque book from the bank, the account holder
should count the cheques therein and draw attention of the bank if any
cheque leaves are missing from the book.
22.a. The Bank will register instructions from the drawer regarding cheque lost, stolen
etc., but cannot guarantee depositors against loss in such cases, in the event of a
cheque being paid. Stop payment will be done with a charge of Rs.20/= per cheque
leaf.
DEPOSITS / WITHDRAWALS THROUGH POST
24. When money is sent by postal money order or by insured post, a letter stating the
amount of the deposit and the number of the account must accompany the
remittance.
25. When a depositor wishes to withdraw money by post, he/she must forward his/her
passbook with a letter stating the number of his/her account, the amount to be
withdrawn (in words and figures). When the amount will be remitted by postal money
order, money order commission and incidental expenses, if any, will be debited to the
depositor’s account. In no case will remittances be made to third parties, but only to
depositors themselves or to schools/colleges towards fees for their sons/daughters,
alimony etc.
26. INTEREST
The current rate of interest allowed on Savings Bank Accounts can be ascertained at
the Bank. This rate is subject to notification of change by advertisement only.
The amount of interest will be calculated, for each calendar month on the lowest
balance at credit on an account between the tenth day and the last day, every six
months on or about last day of July or last of January. No interest will be allowed
unless the interest accrued during the half-year amounts to at least Rupee One.
✤✤✤✤ Mandate
A Mandate is a simple letter of authority, signed by a constituent, authorising the
bank to permit a certain named person (agent) to operate his account on his behalf.
A mandate to operate an account does not extend to overdrawing the account unless
the mandate letter specifically provides the authority to overdraw the account.
Format prescribed by the bank should be availed. In the case of Joint Accounts all
the parties to the account must sign the mandate letter. Any one of the joint
account holders may make a revocation of this authority. In case of a HUF the Karta
and all the major Coparceners must sign the mandate. In case the HUF wants to
issue the mandate in favour of a third party, Karta and major Coparceners should
execute an Indemnity in a standard format available with the bank.
✤✤✤✤ Power of Attorney
A power of attorney is to be stamped in accordance with the provisions of the Indian
Stamp Act and the various states amending acts and must be duly notarized. It
need not necessarily be registered with the Registrar of Assurances. A Power of
attorney executed outside India for use in India should be executed before the Indian
Embassy / High Commission in the country in which it is executed and it must be
stamped according to the Indian Stamp Act within three months of its receipt in
India. The Power of Attorney must be definite and no provisional or conditional
clause as "during my absence from India" or "during my illness" etc., are acceptable.
In all cases, where accounts are opened with Power of Attorney, the principal should
give an undertaking in writing that he shall, in addition to the public notice, notify
the bank about cancellation/revocation of Power of Attorney.
27. TRANSFER OF ACCOUNTS :
Accounts may be transferred from any office of the Bank to another free of charge.
Would the depositor wish to transfer his/her account, he/she must make a written
application for the transfer to the office where he/she maintains his/her account and
send it along with the pass book and unused cheque forms, if any, either to that
office or to the office to which he/she wishes the account to be transferred.
28. INOPERATIVE ACCOUNTS
Accounts not operated during the previous 12 months will be treated as dormant
accounts. In March every year all dormant accounts in which there has not been
operated for a total period of 2 years or more (including the period reckoned to
classify them as dormant) will be transferred to inoperative account. Such accounts
will not be credited with half yearly interest payments, if the balances are below the
minimum balance requirement. To make the account operative, account holders
(depending on the mandate) should give a request letter to the bank. In-operative
accounts would be charged service charges, which can be ascertained from the bank.
Balance lying in an inoperative account, which remained inoperative for five years
and above will be transferred to unclaimed balances.
29. CLOSURE OF ACCOUNT :
A depositor wishing to close his/her account must present the passbook in order that
the interest due on the account may be entered and a final balance struck. The
amount will then be paid to the depositor against his/her receipt. The unused cheque
forms, if any, would be returned to the Bank, along with the ATM/Credit Card.
30. If a depositor wishes to close the account within three months after opening the
same, a charge of Rupee Twenty only will be made.
31. The Bank reserves its right to take steps to get the account closed if frequent return of
cheques for want of funds is observed.
32. ATM cum Debit Card/Internet Banking /Core Banking service/Multicity
Account holders can avail themselves of the above services by making suitable
applications with the bank and subject to terms thereof.
Temporary Overdraft can be availed by salaried account holders by prior
arrangements with the bank.
33. VALUE ADDITIONS
Savings Bank Accounts where an average quarterly balance of Rs.Ten thousand only
and above was continuously maintained during the previous quarter are eligible for the
following concessions in the current quarter.
Concessions :
a. Inland Demand Drafts and/or Mail Transfers for two occasions in a month for a
total amount of DD and /or MT put together not exceeding Rs.10,000/= are totally
exempted from Exchange / Commission charges.
b. Collection charges would not be levied on outstation instruments such as Cheques,
Demand Drafts, Dividend Warrant, Interest Warrant, Refund Order etc., (excluding
Documentary / Clean Bills, Hundies, Supply Bills). The total amount of
instruments collected during a month for which no service charges are recovered
should not exceed Rs.10,000/=. However there is no restriction on the number of
instruments collected per month. The actual postal charges incurred for collecting
the instruments would be collected from the depositor. If the instruments are
requested to be sent to our STAR Centres (speed collection) then usual service
charges would be levied.
33.1 Bank has introduced two new products ; IOB – SB Gold and IOB – Silver . Based
on the balances maintained in the accounts customers are entitled for certain
additional services. Customers can ascertain the details from the branch.
34. No-Frills Account
Nature of Transaction Criteria for the Accounts
i. Branches where account can be
opened
All Rural and Semi Urban branches. Account
can be opened by Urban/Metro branches
under special circumstances
ii. Introduction Introduction from a person who has been
subjected to full KYC procedure.
Alternatively based on Voter Identity Card
iii. Minimum Balance Rs. 5/=
iv. Penalty for non maintenance of
minimum balance
NIL
v. Withdrawal in the account Only by withdrawal slip. Chequebook will
not be issued.
vi. Restriction on amount of
transactions
The balance in the account should not
exceed Rs.50,000/= at any point of time
and the total credit in the account should
not exceed Rs.1,00,000/= in a year.
Whenever the account exceeds these limits,
the account would be subjected to full KYC
norms.
vii. Restriction on number of
transactions.
Twenty five transactions per half year
viii. Penalty for exceeding the number
of transaction
NO interest is payable
ix. Interest payable As applicable to normal SB Accounts
x. Value additions / Concessions None. ATM/Debit Card not to be issued.
35. General
✰✰✰✰ Instant Credit of collection instrument upto Rupees Fifteen thousand only is
available at the discretion of the bank and for eligible accounts.
✰✰✰✰ Lien : The bank has a paramount lien/right of set-off on the deposit amount and it reserves thew right to appropriate it towards any financial obligations of the
depositor to the bank in any capacity.
✰✰✰✰ Change of resident status: The depositor(s) shall inform the bank in writing in the event of change in status under Foreign Exchange Management act.
✰✰✰✰ Maintenance of records: The computer printouts/ ledgers/ records pertaining to the accounts will be destroyed periodically in accordance with Law.
36. Secrecy of the customer accounts
Details of Customers' accounts and transactions are kept confidential by the Bank.
Bank shall not divulge any information relating to the affairs of its Constituents except
in circumstances in which it is in accordance with the Law or Practice and usage
Customary among banks.
37. Change of Rules :
The Bank reserves to itself the right to alter or add to these rules at any time and
to close any account which is not conducted satisfactorily. Customers are requested to
be guided by notice boards or enquire with the bank for the latest schedule of
charges, minimum balance requirements and changes to these Rules and for additional
information.
23. SOME CHARGES RELATING TO SAVINGS BANK ACCOUNTS:
1. The under mentioned Service Charges are inclusive of Service Tax and Education Cess,
wherever applicable.
2. 20% additional charges will be recovered by TBA branches.
3. Postage and out of Pocket Expenses, if any incurred, to be recovered
Charges for Non Maintenance of Minimum balance
a) Savings Bank Accounts
Rural & Semi Urban Rs. 7/- per month in rural and Semi Urban
Branches
Urban & Metro Rs. 14/- per month in Urban & Metro
branches
b) No Frills Accounts Nil
Charges for ECS (Electronics Clearing System)
Debit and Credit (both) – For Individual Nil
Sponsor Bank Charges from Corporate
Users
Rs. 1/- per transaction (per record) +
RBI charges (presently Nil), if any
Returns – Individuals and Corporate
Users
Rs. 50/- for each transaction + Out of
Pocket Expenses + Postage, if any
Charges for Bills / Local Cheques Returned unpaid (Both Inward / Outward)
Non Rural Rs.35/- per instrument
Rural Rs.28/- per instrument
Charges for ABB transactions
Non Rural / Rural Charges
For Cash Credits / Current Accounts Rs.57/- per transaction (Maximum)
For Savings Bank Accounts NIL
Charges of Cheque Books request through ATM
Rs.57/- per request
Personal Accident Insurance Facilitation Charges
Rs. 10/- per account per annum for the sum assured amount of Rs. 1,00,000/-
Issue of Duplicate Pass Books
Non Rural Rs. 23/- per ledger page with latest
balances only. For previous entries
additional charge of Rs. 23/- per ledger
page or part thereof.
Rural Rs. 18/- per ledger page with latest
balances only. For previous entries
additional charge of Rs. 18/- per ledger
page or part thereof.
Stop Payment Instructions
Non Rural Rs. 23/- per instrument/cheque
Rural Rs 18/- per instrument/cheque
Standing Instructions
Non Rural Rs. 12/- per transaction
Rural Rs 9/- per transaction
MICR Cheques charges at MICR & Non MICR Centres
Rs. 2.25 per MICR Cheque Rs. 2.30 per MICR Cheque
Non MICR Cheque charges
Rs. 1.15 per Non MICR Cheque Leaf at
the time of issue
Rs. 1.15 per Non MICR Cheque Leaf at
the time of issue
Charges for inoperative Savings Bank Accounts
A levy of Rs. 23/- per half ending September / March, if such SB Accounts remain
inoperative even after one month of the notice sent to the account holders. If the
balance is Rs. 23/- or less entire balance is to be transferred to Branch P & L account
after closing the account.
Charges for verification of signatures of account holders.
A flat rate of Rs. 12/- per verification.
Charges for inoperative Savings Bank Accounts
A levy of Rs. 23/- per half ending September / March, if such SB Accounts remain
inoperative even after one month of the notice sent to the account holders. If the
balance is Rs. 23/- or less entire balance is to be transferred to Branch P & L account
