Term Deposit Account :
– Banks are required to issue term deposit receipt indicating therein full details, such as, date of issue, period of deposit, due date, applicable rate of interest, etc.
– Term Deposit Receipts can be freely transferable from one office of bank to another.
– In order to extend better service, banks should ensure sending of intimation of impending due date of maturity well in advance to their depositors. Change in rate of interest should be advised well in advance to the customers.
– Deposits repayable in less than three months or where the terminal quarter is incomplete, interest should be paid proportionately for the actual number of days reckoning the year at 365 days or 366 days in case of leap year.
– Banks may allow premature withdrawal of Term Deposits at the request of the depositor and interest on the deposit for the period that it has remained with the bank will be paid at the rate applicable Banks have the freedom to fix penal interest on such withdrawal. No interest need be paid where premature withdrawal takes place before completion of the minimum period prescribed.
– Bank can permit addition/deletion of name/s of joint account holders. However, the period and aggregate amount of the deposit should not undergo any change. Banks may also allow splitting of joint deposit, in the name of each of the joint account holders provided that the period and the aggregate amount of the deposit do not undergo any change.
– Banks may renew the frozen accounts upon obtaining suitable request letter for renewal. No renewal receipt be issued but suitable noting may be done in the deposit account. Renewal of the deposit may be advised to the concerned Enforcement Authority by registered post/Speed Post/Courier. Overdue interest may be paid as per the policy adopted by the banks.
– Banks are required to ensure that their branches invariably accept cash over the counters from all their customers who desire to deposit cash at the counters. No product can be designed which is not in tune with the basic tenets of banking i.e. acceptance of cash.
– Notwithstanding the legal provisions, opening of fixed/recurring and savings bank accounts be permitted in the name of minor with mother as guardian provided bank take adequate safeguards in allowing operations in the accounts by ensuring that such accounts are not allowed to be overdrawn and that they always remain in credit.